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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 5: Issue 11 November 2021
November 2021
Home building staged a slow, modest recovery during the last decade in the wake of the Great Recession, then saw an uptick last year during the COVID-19 pandemic. Increased building activity can been seen in both the single-family and multifamily sectors, based on data for permits from the U.S. Census Bureau. In 2020, builders applied for 979,360 single- family permits, which is 134% higher than the 2011 level of 418,498. For multifamily construction, 491,781 permits were issued in 2020. This is 139% higher than in 2011. Texas took the top spot, with three out of the five largest single-family markets in the Lone Star state. The graphic to the right shows the top 20 metropolitan statistical areas for single-family permits issued between 2011-2020. For multifamily construction, the New York- Newark-Jersey City, NY-NJ-PA metro area topped the list with 377,761 permits from 2011 through 2020. The No. 2 market over the same period was Dallas-Fort Worth-Arlington, TX with 217,621 permits, followed by Los Angeles-Long Beach- Anaheim, CA (185,732), Houston-The Woodlands-Sugar Land, TX (162,545), and Seattle-Tacoma-Bellevue, WA (139,659).
NAHB Calls for Action on Supply Chain NAHB is calling on Congress and the Biden admin- istration to help ease building material supply chain bottlenecks by removing trade barriers and seeking solutions to port congestion and persistent delays in truck and rail transportation. Testifying Oct. 20 before the House Small Business Subcommittee on Oversight, Investigations, and Regulations, NAHB Chairman Chuck Fowke told lawmakers that extraordinarily high lumber and building materials prices are serious headwinds for the U.S. housing sector and for housing affordability.
Remodeling Index Remains Strong NAHB released its NAHB/Royal Building Products Remodeling Market Index (RMI) for the third quarter, posting a reading of 87. That’s unchanged from the second quarter, but up five points from the third quarter of 2020. The finding is a signal of residential remodelers’ confidence in their markets, for projects of all sizes. An index number above 50 indicates that a higher share of remodelers view conditions as good than poor.
Solid Gain for September New Home Sales Fueled by strong demand and buyers’ anticipation of future higher mortgage rates, new home sales posted a solid gain In September. Sales of newly built, single-family homes in September rose 14% to a seasonally adjusted annual rate of 800,000, from a downwardly revised reading in August, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
More New Homes Receive HERS Rating A home’s Home Energy Rating System (HERS) Index Score is calculated by a certified Resi- dential Energy Services Network (RESNET) HERS Rater who pro- vides an energy rating for a home by comparing its features against a defined reference home (a 2006 standard built home). Since the inception of the HERS Index in 1995, there have been more than 3.2 million HERS-rated homes, with more than 230,000 rated this year. 2020 saw a 24% increase in the number of rated homes over 2019, with nearly one in four new homes built receiving a HERS Index Score, according to RESNET. FHFA Announces Measures To Promote Affordability The Federal Housing Finance Agency has announced measures to advance the affordability of homeownership, especially in underserved communities. Over the coming months, Fannie Mae and Freddie Mac (the Enterprises) will expand certain eligibility requirements for their RefiNow and Refi Possible refinance programs aimed at assisting low-income borrowers. Second, the Enterprises will be incorporating desktop appraisals into their selling guides for new purchase loans, beginning in early 2022.
Property Taxes Vary Widely from State to State
Property taxes vary widely across states both in terms of annual taxes paid as well as effective tax rates. In 2019, the difference between average real estate taxes paid by New Jersey and Alabama home owners was $7,974. New Jersey continued its distinction as having the highest average real estate tax bill per home owner ($8,687) as well as the highest effective tax rate (2.13%). Alabama ($713) and Hawaii (0.31%) were at the other end of the spectrum, with the lowest annual real estate tax bill and average effective tax rate, respectively. The difference in taxes between New Jersey and Alabama grew by $170 between 2017 and 2019. The map above shows the concentration of high average property tax bills in the Northeast. In contrast, southern states (with the exception of Texas) boast some of the lowest RET bills for their resident homeowners.
Lot Shortage Getting Serious Even as home builders deal with a shortage of skilled labor and building materials supply challenges, in many areas they are also facing a serious lot shortage. In a recent NAHB survey, 76% of builders reported that the overall supply of developed lots in their areas was low to very low. This is a record-high response to this question since NAHB began collecting the information in the 1990s. The previous record was 65% in 2018. Responding to questions in the September 2021 NAHB/Wells Fargo Housing Market Index (HMI) survey, 46% of single-family builders characterized the supply of lots simply as low, and 30% said the supply of lots was very low.
And Where Are the Workers? Economic growth for 2021 is expected to post the best GDP expansion rate since 1984. But the labor shortage has taken some of the bloom off the economic rose. The Bureau of Labor Statistics employment report for September registered a gain of only 194,000 jobs. Forecasters, including NAHB, were looking for a gain closer to 500,000. Indeed, the number of open, unfilled jobs in the construction sector now totals 344,000. As of September, residential construction workers totaled 3.1 million, broken down as 882,000 builders and 2.2 million residential specialty trade contractors. Over the last 12 months, home builders and remodelers added 136,300 jobs on a net basis.
The map above shows the concentration of high average property tax bills in the Northeast. In contrast, southern states (with the exception of Texas) boast some of the lowest RET bills for their resident homeowners.
Green Home Tour Looks at Healthy Home in Pebble Beach
The NAHB/NAR Home Performance Counts: Virtual Green Home Tour Series continues in November from Pebble Beach, Calif., at Villa Bilancia. Healthy home construction is one of the hottest topics in homebuilding today. Bill Hayward and his family experienced firsthand why it is critical. Years ago, they moved into what they thought was their dream home, only to discover the house was making them sick. From that exper- ience, Bill was inspired to help people better design their homes, leading to the creation of the Hayward Healthy Home principles and the Hayward Score. Villa Bilancia is the Hayward’s recently completed dream home. It was built using leading edge building science and healthy living knowledge. Experience high- performance at the highest level while also learning how the efficient and healthy strategies used are scalable to all homes. Another of the guiding principles for this home comes from the Wellness Within Your Walls (WWYW) program. WWYW founder Jillian Pritchard Cooke joins Bill on the tour and the post-tour Q&A. Register for the tour at nahb.org/greentour. These free 45-minute green tours are held the third Thursday of each month and include a live Q&A with building and real estate professionals. Registrants can access the replay for this event and others in the series through NAHB's webinar replay library. The series is a product of Home Performance Counts, a joint educational initiative between NAHB and the National Association of Realtors (NAR).
2022 Cornerstone is now available
The 2022 "Have It Your Way" Cornerstone Program is now available. Click here to find out more about our sponsorship and marketing opportunities for 2022!
Upcoming Meetings & Events
November 24th, 2:00PM Community Service Committee Hybrid Meeting (Zoom Link or at the FABA office) December 7th , 9:00-10:00AM FAB Foundation Meeting Zoom or Hybrid December 8th, 9:00AM Associates Committee Hybrid Meeting (Zoom link or at the FABA office) December 8th, 10:30AM Membership Committee Hybrid Meeting (Zoom link or at the FABA office) December 9th, 5:00PM Holiday Party Hard Hat at Highmark Brewing sponsored by 516 Project December 16th, 8:30AM Legislative Committee Meeting Zoom January 15th, 6:00PM President's Gala Old Silk Mill
Calendar at a Glance
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Membership Committee
The Fall Membership Drive was a win! Thank you to all of the players who participated in the October membership drive. We finished the drive with 21 new members and 42 renewals! We are so appreciative to all of our members, thank you for all that you do!
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
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. Check out the photos from our Presidents Reception & Annual Meeting here!
Chair- Mike King- Rayssiddingcompanay@gmail.com Rays
Associates Committee
2021 Events FABA Awards Spring Golf Spring Clay Shoot Bingo Crab Feast and Auction Disc Golf Fall Clay Shoot President's Reception Legislative Fall Golf Annual Meeting Holiday Party A little something for everyone!
Associates Committee Hybrid Meeting Zoom Link: Second Wednesday of each month at 9:00 AM
Curious about what the legislative committee and PAC does for our members? Here are a few examples:
Worked with the Governor’s Administration to keep construction an “essential industry” throughout the pandemic
Orange County Quarterly Meeting Zoom December 1st, 1:00PM Fredericksburg County Bimonthly Meeting Zoom December 3rd, 9:00AM Spotsylvania County Bi-monthly Meeting Zoom December 6th, 3:00PM Spotsylvania Builder Round Table Zoom Meeting December 7th, 12:00 PM Culpepper County Quarterly Meeting Zoom December 9th, 9:00AM Stafford County Bimonthly Meeting Zoom December13th, 9:00AM Caroline County Quarterly Meeting Zoom December 15th, 11:00AM
Legislative Committee
Upcoming County Zoom 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. Jeh Hicks, Jarrell Properties , Inc., is the chairman of the Developers Council. This group meets every other month. For more information contact Chrissy Urian at c.urian@fabava.com
Defeated legislation to allow localities to enact their own building codes
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.
Blocked legislation to allow Project Labor Agreements in Zoning Ordinances
FABA is a proud sponsor of the Trees of Hope. Check out our 2021 trees!
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. 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!
This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM.
Peace on Earth
Beary Merry Christmas
The Young Professionals are looking for more members. We want you! Bi -Monthly meetings will begin in January. Know someone at your company who may be interested or benefit from our committee? Send them our way! Email Meghan at Meghan@FABAVA.com
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Meghan Butcher - FABA Staff Meghan@FABAVA.com
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth.
Chair - TBD
Access training and educational materials on YouTube
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. To join the FABA Young professionals committee email Meghan@fabava.com
FABA works to educate, promote and represent the building industry while enhancing the region’s quality of life.
Cornerstone 2021
FAB Foundation provides grants to students pursuing careers in the home building trades. Now offering internships and apprenticeships to gain real world experiences in the building industry. If you are interested in making a donation to FAB Foundation please contact Maria at mmoore@fabava.com. If you know of a student pursuing a career in the building trades, please have them visit our FAB webpage to fill out a FAB grant application.
FAB Foundation Workforce Grants
FABA Student Chapters Spotsylvania Career and Technical Center James Monroe High School Stafford High School Spotsylvania High School Gladys H Oberle School Orange County High School Caroline High School
FAB Foundation
FAB Board of Directors Greg Schmidt Glen Raymond Eddie Payne Guy Miller-Richards Emily Hall Christine Singhass Mike King Ricky Robinson Tim Thompson Gary Parker Scottie Davis
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.
The 2022 Slate of officers President- Scott Hine 1st VP-Marc Simes 2nd VP-Jeh Hicks Treasurer-Jeremiah Horstick Secretary-Michelle Hall Associate VP-Mike King Immed.PastPres.-Stacey Lampman Legal Counsel-Charlie Payne Builder Director-Dan Sandoval -NAHB Builder Director-Sean Halsey Builder Director-Tim Hall Builder Director-Teresa Taylor Griffis Builder Director-Allen Harrison Builder Director-Steve Flanagan Associate D.-Bruce Reese Associate D.-Emily Hall Associate D.-Sara Fila Associate D.-Rick Furnival Associate D.-Greg Schmidt
2021 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 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
Bylaw Changes for 2022
ARTICLE II MEETINGS Section 1.MEETINGS OF THE MEMBERSHIP: (B)Regular meetings of the membership of this Association shall be held each month, or at such other time as the Board of Directors may designate.
…..…………………………………………………………….………… ARTICLE II MEETINGS Section 1.MEETINGS OF THE MEMBERSHIP: (B)Regular meetings of the membership of this Association shall be held each month, or at such other time as the Board of Directors may designate.DELETE
ARTICLE V ELECTIVE OFFICERS (B)A First Vice President who shall be a Builder or Associate member of the Association, in the absence of the President, or upon his direction, shall perform all of the duties of the President.The First Vice President shall serve as the Chairman of the Membership Committee.
ARTICLE V ELECTIVE OFFICERS (B)A First Vice President who shall be a Builder or Associate member of the Association, in the absence of the President, or upon his direction, shall perform all of the duties of the President.The First Vice President shall serve as the Chairman or Co-Chairmanof the Membership Committee.
(C)A Second Vice President who shall be a Builder or Associate member of the Association, in the absence of the President and the First Vice President, shall perform all of the duties of the President.The Second Vice President shall serve as co-chair of the Legislative Committee or be actively involved in the Legislative Committee.
(C)A Second Vice President who shall be a Builder or Associate member of the Association, in the absence of the President and the First Vice President, shall perform all of the duties of the President.The Second Vice President shall serve as co-chair of the Legislative Committeeor be actively involved in the Legislative Committee.DELETE .
ARTICLE VII ELECTIONS (A)There shall be a Board of Directors Nominating Sub-Committee composed of the Immediate Past President, each Chapter Vice President and a minimal of two members appointed by thePresident. Additionally, the Executive Vice President shall be an ex-eficio member of the Sub-Committee.Appointments shall be made and notice given to the membership at least thirty days in advance of an election.The President shall designate the Chair of the Committee.
ARTICLE VII ELECTIONS (A)There shall be a Board of Directors Nominating Sub-Committee composed of theImmediate Past PresidentFirst VP as chairman, each Chapter Vice President and aminimumof two members appointed by thePresident. Additionally, the Executive Vice President shall be anex-officiomember of the Sub-Committee.Appointments shall be made and notice given to the membership at least thirty days in advance of an election.The President shall designate the Chair of the Committee.
ARTICLE IX FINANCES Section 2.The Board of Directors Finance Sub-Committee shall be composed of the President, Treasurer, First Vice President, Second Vice President, Executive Vice President and Immediate Past President. The Treasurer shall serve as the Chair of this committee.The Executive Vice President is a non-voting member.The Board of Finance will: (1)Present to the Board of Directors at the November meeting a proposed operating budget for the next calendar year. (2)Present a midyear budget review to the Board of Directors. (3)Arrange for an internal annual audit of FABA’s financial records. (4)Produce an Annual Financial Statement that shall be presented to the newly elected Board of Directors at their first meeting
ARTICLE IX FINANCES Section 2.The Board of Directors Finance Sub-Committee shall be composed of the President, Treasurer, First Vice President, Second Vice President, Executive Vice Presidentand Immediate Past PresidentAssociate Vice President.The Treasurer shall serve as the Chair of this committee.The Executive Vice President is a non-voting member.The Board of Finance will: (a)Present to the Board of Directors at the November meeting a proposed operating budget for the next calendar year. (b)Present a midyear budget review to the Board of Directors. (c)Arrange for an internal annual audit of FABA’s financial records. (d)Produce an Annual Financial Statement that shall be presented to the newly elected Board of Directors at their first meeting (e)Will meet annually in September to review the compensation of FABA’s Executive Vice President.Recommendations as to salary, health benefits, bonuses, retirement plans, etc., will be submitted in a form of a contract proposal to the Board of Directors Finance Sub-Committee for inclusion in the next year’s budget.
Section 5.The Board of Directors Compensation Sub-Committee shall becomposed of the President, Immediate Past President, Treasurer and Associate Vice President will meet annually in September to review the compensation of FABA’s Executive Vice President.Recommendations as to salary, health benefits, bonuses, retirement plans, etc., will be submitted in a form of a contract proposal to the Board of Directors Finance Sub-Committee for inclusion in the next year’s budget.The President shall serve as Chair of this Sub-Committee.
Section 5.The Board of Directors Compensation Sub-Committee shall becomposed of the President, Immediate Past President, Treasurer and Associate Vice President will meet annually in September to review the compensation of FABA’s Executive Vice President.Recommendations as to salary, health benefits, bonuses, retirement plans, etc., will be submitted in a form of a contract proposal to the Board of Directors Finance Sub-Committee for inclusion in the next year’s budget.The President shall serve as Chair of this Sub-Committee.DELETE
ARTICLE V ELECTIVE OFFICERS Section 1.The following Officers shall be elected by the membership at its Annual Meeting and shall hold office for a term of one (1) calendar year from the date of election or until their successors are elected and duly qualified.
ARTICLE V ELECTIVE OFFICERS Section 1.The following Officers shall be elected by the membership at its Annual Meeting and shall hold office for a term ofone (1)two (2)calendar year from the date of election or until their successors are elected and duly qualified.
Thank you to our Cornerstone Sponsors
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