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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 5: Issue 2 February 2021
While housing starts ended the year on a strong note, rising lumber prices and increasing regulatory cost concerns could affect future production. Led by a solid, double-digit gain in single-family starts, overall housing starts increased 5.8 percent to a seasonally adjusted annual rate of 1.67 million units, according to a report from HUD and the U.S. Census Bureau. The December reading of 1.67 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 increased 12.0 percent to a 1.34 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, decreased 13.6 percent to a 331,000 pace. Total housing starts for 2020 were 1.38 million, a 7.0 percent gain over the 1.29 total from 2019. Single-family starts in 2020 totaled 991,000, up 11.7 percent from the previous year. Multifamily starts in 2020 totaled 389,000, down 3.3 percent from the previous year. On a regional and year-to-date basis (January through December of 2020 compared to that same time frame a year ago), combined single-family and multifamily starts are 13.2 percent higher in the Midwest, 7.5 percent higher in the South, 6.2 percent higher in the West and 2.8 percent lower in the Northeast.
Housing Starts Finish Strong in 2020
CDC Extends Eviction Moratorium The Centers for Disease Control and Prevention has announced it is extending the current order temporarily halting residential evictions until at least March 31, 2021. The COVID-19 pandemic has presented a historic threat to the nation’s health. It has also triggered a housing affordability crisis that disproportionately affects some communities.
Biden Signs Directive On Fair Housing President Biden on Jan. 26 signed a presidential memo- randum that directs HUD to examine the effects of the previous administration’s regulatory actions that may have undermined fair housing policies and laws. The memorandum directs HUD to take steps necessary based on that analysis to fully implement the Fair Housing Act’s requirements. It also directs HUD to determine if the Trump-era disparate impact rule should be returned to the 2013 standard that made it easier to prove unintentional discrimination. SGC Horizon Named NAHB's Media Partner NAHB and SGC Horizon have jointly announced that NAHB has selected SGC Horizon to be its official media partner. The Partnership is designed to strengthen not just NAHB and SGC Horizon, but also the association’s 140,000 members and the 285,000 readers of Pro Builder and other brands under the SGC Horizon umbrella.
Biden Freezes All Pending Regulations The Biden administration has implemented a regulatory freeze for all pending regulations. Of note to the housing community, this action means that the U.S. Department of Labor’s final independent contractor rule that was put forth in the waning days of the Trump administration, and scheduled to go into effect on March 8, is likely to face a delay. The effective implementation date of the independent contractor rule is expected to be pushed back beyond March 8 while the Biden administration determines how to proceed and examines its options on whether to revise or even repeal the rule.
2020 NGBS Important for Developers The ICC 700-2020 National Green Building Standard® (NGBS), released last year, updated two sections that should be bookmarked for home builders engaged in land use and development. Understanding the changes from the 2015 NGBS will enable developers and builders to determine the compliance path that works best for their project. The 2020 NGBS provides land developers and builders the flexibility needed to develop land and lots that are sustainable, cost effective and appropriate for their geographic location.
President Biden in January signed a series of executive orders, including two related to climate change policy. The first directs the United States to begin the process to rejoin the Paris Climate Agreement, the 2015 international treaty signed by nearly 200 countries that calls for limiting fossil-fuel pollution that causes climate change. While symbolically significant, the accord relies on commitments made by signatory countries to meet specified goals, but contains no enforcement mechanisms. In the second order, “Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis,” Biden calls for action to strengthen the role of science and to better enable accounting for the incremental increases in greenhouse gas emissions. The key metric the executive order discusses is re-establishing and revising the “social cost of carbon” (SCC), which was widely used by the Obama administration.
Biden Signs Two Executive Orders on Climate Change
ICC Publishes 2021 IECC Codes Following a three-year development process, the 2021 ICC family of model building codes has been published. Many changes to the International Energy Conservation Code (IECC) are of particular interest to home builders. The development of the 2021 IECC was marked by controversy, culminating in multiple appeals by NAHB and others. Two of NAHB’s appeals were upheld by the ICC Board. But several problematic code changes that had been twice disapproved (first by the code development committee and then at public comment hearings) got into the 2021 IECC as a result of a controversial online ballot heavily influenced by block voting from non-code enforcement government officials that was linked to a single voting guide.
Answers to Your PPP Questions The Small Business Administration and U.S. Treasury Department have reopened the expanded Paycheck Protection Program (PPP) for both new borrowers and for certain existing borrowers to apply for a second loan. NAHB recently held a series of webinars to help members and home builder associations (HBAs) understand their eligibility for the forgivable loan programs under the $900 billion COVID-19 relief package signed into law by President Trump in late December. Members and HBAs can access recordings of the webinars on nahb.org. The SBA and the Treasury Department continue to update guidelines and publish new direction on the application process and use of these funds. Please stay tuned to NAHB communications for updates.
COVID-19 Continues to Affect Home Purchase Plans
As the nation begins to recover from the COVID-19 pandemic, more Americans are interested in purchasing homes, according to NAHB’s latest Housing Trends Report. The share of Americans who are considering the purchase of a home in the next 12 months was 15% in the fourth quarter of 2020, four percentage points higher than a year earlier and the largest year-over-year gain in the three-year history of this series. The gain shows the coronavirus outbreak continues to affect Americans’ desire to buy homes. Millennials stand out among the demographic groups in their intent to buy a home. Between the fourth quarters of 2019 and 2020, the share of millennials planning a home purchase rose eight points to 27%. The share increased six points to 18% among Gen Xers, three points to 16% among Gen Z, and was flat at 5% among baby boomers. Geographically, the share of adults with plans to buy a home rose in all four regions during this period, led by the Northeast (up nine points to 19%) and the West (up six points to 18%). Rose Quint, NAHB’s assistant vice president for survey research, provides more analysis in this Eye on Housing blog post.
Home Building Sees Net Job Gains From May through December, the number of new residential construction jobs created offset the total amount of jobs lost earlier in 2020 due to the COVID-19 pandemic. The number of residential construction jobs rose by 22,700 in December, well above the 15,800 increase posted in November. In the past eight months, 472,500 residential construction jobs were created, offsetting all the 456,800 residential construction jobs lost in March and April due to the coronavirus outbreak.
2021 FABA President - Scott Hine shine@assurancemortgage.com
I would be remiss if I did not start my first letter by thanking you for placing your confidence in me to be the association president for 2021. I am both honored and humbled. That being said, it is still a difficult environment in which we find ourselves because of the pandemic and the recession. As an industry, though, we have been blessed. The Governor’s decision that housing and construction are “essential” industries has allowed us to participate in a phenomenal housing market for the last several months. But balancing the volume with the challenges is forcing all of us to adapt our business models and practices to accommodate what may or may not become the “new normal.” While most of us are probably glad to see 2020 in the rearview mirror, it was still a year in which many things were accomplished and many challenges met. I want to make sure that that we thank every member of our 2020 Board of Directors for their time, dedication, and commitment. The time sacrifice to serve on this board has perhaps never been as significant as it was this past year. To our members, both builders and associates, your membership is vital to our success as well. We encourage you to maximize your investment by getting actively involved. There is something for everyone, even during this time of social distancing, whether you have an hour or several hours to lend your expertise, writing for newsletter, serving on a committee, planning events, or recruiting new members. We will look to add some new initiatives this year, and their success will depend on the help of our members. We have already had 3 new members join in January. I want to welcome them, and I want to encourage all of you to try to enlist at least one new member this year. Our collective voice is more powerful with numbers. The advocacy efforts of FABA, HBAV, and NAHB are totally dependent on the financial resources that come with good membership numbers. We understand that in person events are on somewhat of a hiatus, but now more than ever, we can see the impact that our lobbying efforts have played. In several of our surrounding states, construction was not considered an “essential” industry, and as a result, projects were stalled, jobs were reduced, and profits eliminated. The events will return, but we need new members now to keep our industry thriving. Even as I write this, the Virginia General Assembly is considering several new laws which will have a major impact on our ability to carry our out mission, and our local politicians are making decisions that affect us right now. We need to make our collective voices heard. If you know someone in the industry who is benefitting from the work of the association without joining and doing their part, please use your relationship and influence to encourage them to join. Educate them on the on need for their financial support to our mission. If you can’t be the voice, then please pass along the information to Maria, and she will make sure that the right person reaches out to them. We’ve lost some members for sure, but the time for growth is now. There are many benefits and reasons to support the association as it works hard to keep the building industry strong! I look forward to what we can accomplish in 2021. Feel Free to reach out to me directly if I can be of assistance or answer any questions. If you have any ideas to help the association grow, I’d love to hear them. Let’s make 2021 a great year for our industry and those whom we serve. Scott Hine Assurance Financial 2021 FABA President
President's Pen
March 3rd, 9:00AM FAB Foundation Meeting Zoom log in March 10th, 9:00AM Associates Committee Meeting Zoom log in March 10th, 10:30AM Membership Committee Meeting Zoom log in March 18th, 8:30 Legislative Committee Meeting Zoom log in March 18th, 5:00PM Hard Hat Zoom log in
TICKETS ON SALE Monday, May 10, 2021 - Spring Golf Tournament at Fawn Lake
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.
Calendar at a Glance
THANK YOU to these members for their continued support of the building industry through Membership! January 2021 New Builder Members Heeman Construction MMC Contracting New Associate Members True North Contracting Renewed Builder Members J. Hall Homes Professional Building Services Tricord Renewed Associate Members Bowman Consulting Group Centennial Broadcasting and Digital Exceptional Home Designs Liberty Roofing Center Lyons Stucco and Stone
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 meets virtually every 2nd Wednesday at 10:30AM.
Chair - Marc Simes, msimes@tricordinc-va.com
Membership Committee Meeting March 10th, 10:30 AM Hard Hat March 18th, 5:00PM Zoom Link
The Associates Committee plans member events to promote doing business with members. These volunteers coordinate networking and social events for business connections. This committee meets virtually every 2nd Wednesday at 9:00AM.
Chair - Mike King, rayssidingcompany@gmail.com
Associates Committee
2021 Events FABA Awards President's Reception Spring Golf Clay Shoot Disc Golf Crab Feast and Auction Twilight Golf Turkey Shoot Legislative Fall Golf Holiday Party Dates and details to comply with COVID regulations
Associates Committee Meeting Link March 10th, 9:00 AM
Fredericksburg City Bi-Monthly Meeting April 2nd, 9:00AM King George County Quarterly Meeting April 2nd, 10:00AM Orange County Quarterly Meeting April 2nd, 3:00PM Spotsylvania County Bi-Monthly Meeting April 5th, 3:00PM Stafford County Bi-Monthly Meeting April 12th, 9:00AM Caroline County Quarterly Meeting TBD Culpeper County Quarterly Meeting TBD
Legislative Committee
Upcoming County Meetings
Latest updates from your three in one membership hard at work for BUSINESS
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. For more information contact Chrissy Urian at c.urian@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 every third Thursday at 8:30AM. Thursday, March 15th - Zoom Meeing Link
Chair - Greg Schmidt, greg@pestsolutionsva.com
Community Service Committee
The Community Service committee seeks to increase civic engagement among the members of FABA and utilize professional skills to actively benefit the Fredericksburg area. This committee meets virtually every 4th Wednesday at 2:00PM. The next meeting is March 24th at 2:00PM. Zoom link
Your Picture Here
Chair - TBD
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth.
Webinar - How Gen Z and Millennials Are Changing Homebuilding Forever Click here
Education Committee
For more information on NAHB Young Professionals click here
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.
Cornerstone 2021
FABA works to educate, promote and represent the building industry while enhancing the region’s quality of life.
FAB Foundation provides grants to students pursuing careers in the home builidng trades. If you are interested in making a donation to FAB Foundation please contact Shelley at admin@fabava.com. 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.
Jenga yard games - created by students as a fundraiser
FAB Foundation Workforce Grants
FABA Student Chapters Spotsylvania Career and Technical Center Stafford High School Gladys H Oberle School Caroline High School
FAB Foundation
FAB Board of Directors Glen Raymond Eddie Payne Guy Miller-Richards Emily Hall Christine Singhass Mike King Ricky Robinson Tim Thompson Gary Parker Scottie Davis Brandon Serbay
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 involved with these students, contact FABA for more information.
Congratulations Above & Beyond Award Winner Jeremiah Horstick, CORELOT
Congratulations 2020 Presidents Award Winner Bruce Reese, Legacy Engineering
2021 FABA Board of Directors
President Scott Hine Assurance Financial Group 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 Shawn Callahan Metwood Building Solutions Builder Director Tim Hall Tricord Companies Builder Director Sean Halsey Halsey Homes Builder Director Allen Harrison Battlefield Homes Builder Director Pete McGuire Triple Crown Homes Builder Director Dan Sandoval Republic Home Builders Builder Director Teressa Taylor-Griffis Foundation Homes 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
Rookie of the Year Leisha Kinser Topside Federal Credit Union
Associate of the Year Kathy Roscoe Topside Federal Credit Union
Committee Chair of the Year Marc Simes Tricord Companies
Community Service Award Teisha Ingraham Central Park Insurance
Hats Off to FABA's 2020 Award Winners
Legislative Award Gene Brown Atlantic Builders
Volunteer of the Year Michael Pollaci Contractor Websites Plus
Spirit of FABA Suzanne Surles Central Park Insurance
Spike of the Year Sean Halsey Halsey Homes
Builder of the Year Atlantic Builders