FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE - CULPEPER
Forecast for Home Building in 2021 Remains Solid
BUILDERS FRAMEWORK
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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 5: Issue 1 January 2021
Single-family builder sentiment fell back to a level of 86 in December, according to the NAHB/Wells Fargo Housing Market Index (HMI), after achieving an all-time high of 90 in November. The dip was due to growing concerns over housing affordability in 2021. However, December’s HMI was still the second highest on record. Supply-side pressures, such as resurgent lumber prices, limited lot supplies, supply-chain issues, and a persistent skilled labor deficit foreshadow higher costs and longer build times heading into next year. Moreover, on the demand side of the housing market, limited inventories of single-family homes have generated strong price gains in 2020. The deployment of a vaccine, while representing good news for the overall economy, will place upward pressure on interest rates. In turn, the combination of higher prices and rising rates will price some households out of the housing market next year. The NAHB forecast is for ongoing gains for single-family construction in 2021, though at a slower growth rate than in 2020. Remodeling will remain strong as people continue to upgrade existing homes. The multifamily construction market will experience weakness as rent growth slows and vacancy rates rise. However, the development market should stabilize by 2022.
U.S. Lowers Duties on Canadian Lumber A final determination of the first administrative review by the U.S. Commerce Department will reduce duties on shipments of Canadian softwood lumber into the United States from 20% to 9%. This is a step in the right direction for the lumber market, which has seen significant price volatility over the last year. NAHB encourages U.S. trade officials to work with Canada to end the tariffs and achieve a long-term, stable solution in lumber trade.
CFPB Issues Final Qualified Mortgage Rules The Consumer Financial Protection Bureau has issued two final rules related to qualified mortgage (QM) loans. The General QM Final Rule replaces the current requirement for General QM loans that the consumer’s debt-to-income ratio (DTI) not exceed 43%, with a limit based on the loan’s pricing. The second rule creates a new category for QMs – Seasoned QMs. In adopting a price-based approach to replace the spe- cific DTI limit for General QM loans, the CFPB deter- mined that a loan’s price is a strong indicator of a con- sumer’s ability to repay and is a more holistic measure of a consumer’s ability to repay than DTI alone.
Do Business With
an NAHB Member

NAHB has begun a broad campaign to encourage everyone in the federation to “Do Business with an NAHB Member.†The effort seeks to foster cross-functional relationships among Builder, Associate and Affiliate members. More members working together means more opportunities across the home building industry and the NAHB Federation. NAHB has developed logos and banner ads that members and HBAs can use on their websites and in social media. 
NAHB Calls for COVID Safety Stand Down

NAHB encourages members and all other residential construction companies to halt work for at least 10 min- utes the week of Jan. 11-15, for a COVID-19 Jobsite Safety Stand Down to remind workers what they should do to keep themselves safe from coronavirus and to help reduce its spread. Precautions include wearing face cover- ings, maintaining a distance of at least six feet, and cleaning and sanitizing frequently used tools and surfaces.
Average New Home Uses 24 Subcontractors Roughly 69% of home builders use between 11 and 30 subcontractors to build the typical single-family home. The average is 24 different subcontractors per home, according to responses to a set of special questions in a recent survey conducted as part of the monthly NAHB/Wells Fargo Housing Market Index. At least 95 percent of builders said they always subcontracted five different jobs: HVAC (97 percent), electrical wiring and plumbing (96 percent each), and carpeting and security systems (95 percent each).
Take Advantage of IBSx Education Sessions
Housing Starts Flat in November Single-family starts flattened in November as builders struggled to meet demand, while overall housing starts increased 1.2% to a seasonally adjusted annual rate of 1.55 million units, according to a report from HUD and the U.S. Census Bureau. The November reading of 1.55 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 0.4% to a 1.19 million seasonally adjusted annual rate. The multifamily sector, which includes apartments and condos, increased 4.0% to a 361,000 pace. On a year-to-date basis, combined single-family and multifamily starts are 14.4% higher in the Midwest, 7.6% higher in the South, 5.4% higher in the West and 3.3% lower in the Northeast.
Dynamic, in-depth education sessions – a hallmark of the traditional International Builders’ Show – will continue during the IBSx Virtual Experience, Feb. 9-12, 2021. From the convenience of your computer, you can expect to learn about best practices and solutions and hear insights from some of home building’s top experts. With more than 100 education sessions in nine industry tracks, you’ll access fresh strategies, trends and solutions for beginners and experienced professionals. Education sessions are accessible when you purchase an All Access pass. The industry tracks include: Architecture & Design; Building Techniques & Strategies; Business Management; Custom Building & Remodeling; Land Development & Community Design; Multifamily Housing; Project Management; Research & Trends; and Sales & Marketing; Education content will be available in live and semi-live sessions, as well as on demand. The on-demand content will be available for viewing during the four-day show through March 31, 2021. Learn more IBSx education sessions and register at BuilderShow.com.
State of the Nation's Housing Although housing has generally been a bright spot in the midst of the pandemic, the Harvard University’s Joint Center for Housing Studies recent report, “The State of the Nation’s Housing 2020,†shines a spotlight on key areas for improvement, especially the lack of an adequate supply of new housing. The report noted that the supply of existing homes was at its lowest level since 1982. Tightened supply and strong demand has led to increased home prices, with prices rising 5.7% year over year in September. The greater impact on low-income house- holds is also reflected in the rental market. According to the report, 37.1 million households, or 30%, were cost burdened in 2019, with 17.6 million (14%) identified as severely cost burdened (spending more than 50% of their incomes on housing).
Latest Stimulus Package Contains Key Provisions for Housing
A $900 billion economic relief package approved by the House and Senate on Dec. 21 includes key provisions that NAHB championed. President Trump signed the measure into law six days later on Sunday, Dec. 27. NAHB worked closely with Democratic and Republican congressional leaders to ensure the recovery legislation addresses three major builder concerns: • Provides relief for small businesses
 from burdensome loan forgiveness 
 requirements. • Helps struggling renters and landlords
 with dedicated rental assistance. • Assists HBAs that have largely been
 excluded from previous relief measures. The final package covers these three areas and contains several other policy objectives that NAHB has championed, including a permanent minimum 4% credit floor on low-income housing tax credits that will allow multifamily developers to finance thousands of additional affordable rental units and an extension of temporary tax provisions for newly-built energy-efficient homes and for home owners who engage in remodeling activities. The legislation also includes other important provisions that: • Extend all pandemic unemployment
 benefits expiring at the end of
 December through March 14, 2021. • Extend weekly enhanced federal
 unemployment payments (paid out on
 top of regular UI benefits) of $300 per
 week through March 14, 2021. • Provide a direct payment of $600 to
 most Americans. View further analysis on the following areas of the $900 billion rescue package: Tax Relief Rental Assistance Paycheck Protection Program
Show your support for FABA and the Home Building Industry as Cornerstone Sponsor for 2021. Call now to reserve your spot! Click here for more information or Contact Maria Moore 540-898-2730
Friend Assurance Financial Caroline Habitat for Humanity Carter Lumber Clarion Hotel Contractor Websites Plus Dominion Energy Rater Group Embrace Home Loans Halsey Homes Holt for Homes J. Hall Homes Legacy Engineering Mary Jordan, Realtor PermaTreat Pest Control Suburban Auto Sales Thrasher Universal Title Virginia Partners Bank
Cornerstone 2021
Partner Dominion Energy Platinum Mid South Building Supply Gold Atlantic Builders The Childress Agency GAF Jim Carpenter Company Reico Topside FCU Silver Built Right Homes Coleman Homes Ray's Siding Republic Home Builders Superior Distribution
Febuary 10th, 9:00AM Associates Committee Meeting Zoom log in February 10th, 10:30AM Membership Committee Meeting Zoom log in February 18th, 8:30 Legislative Committee Meeting Zoom log in February 18th, 5:00PM Hard Hat Zoom log in February 24th, 2:00PM Community Service Committee Meeting Zoom log in
Save The Date 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! (December 2020) Renewed Builder Members Mr. Fix It Greater Fredericksburg Habitat for Humanity Renewed Associate Members All American Paving and Sealing PermaTreat Residential Warranty Company Sherwin Williams Stafford Printing
Membership Committee
The Membership Committee brings builder and associate members together to focus on recruitment of new members and retention of current members. Chair - Marc Simes, msimes@tricordinc-va.com This committee meets virtually every 2nd Wednesday at 10:30AM.
Membership Committee Meeting February 10th, 10:30 AM Hard Hat February 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. Chair - Mike King This committee meets virtually every 2nd Wednesday at 9:00AM.
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
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.
Spotsylvania County Bi-Monthly Meeting
February 1st, 3:00PM
 Fredericksburg City 
Quarterly Meeting
February 5th, 9:00AM Stafford County 
Bi-Monthly Meeting
February 8th, 9:00AM
 King George County 
Quarterly Meeting
April 2nd, 10:00AM Orange County
Quarterly Meeting
April 2nd, 3:00PM 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.
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. Chair - Bruce Reese This committee meets every third Thursday at 8:30AM.
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. Chair - Greg Schmidt This committee meets virtually every 4th Wednesday at 2:00PM. The next meeting is February 24th at 2:00PM.
HBAVs Member Wide Webinar: 7 Keys to Better Time Management Click Here
Education Committee
For more information on NAHB Young Professionals click here
Young Professionals Committee
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth.
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
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 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 Glen Raymond Eddie Payne Guy Miller-Richards Emily Hall Christine Singhass Mike King 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.
Welcome our new 2021 Board of Director Members Pete McGuire - 
Builder Director Rick Furnival - Associate Director Emily Hall -
Associate Director THANK YOU!!!
Thank you for your service to FABA on the 2020 Board of Directors Stacey Lampman - President John Reid - 
Associate Vice President Frank Sigmon - Associate Director
2020 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