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Volume 3: Issue 9 │ September 2019
FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE
HARD HAT
Thursday, October 3rd 5pm-9pm at Stevenson Ridge Click here for tickets
THURS. Sept 19th 5 pm - 7 pm at Splitsville Click here for info
Click here to watch!
Parade of Homes Awards and Celebration
Over the first six months of 2019, the total number of single-family permits issued year-to-date (YTD) nationwide reached 417,453. On a year-over-year basis, this is a 6.1% decline over the June 2018 level of 444,600. Year-to-date ending in June, single-family permits reported declines in all four regions. The Midwest, Northeast, South, and the West declined by 9.8%, 3.0%, 3.7%, and 10.2% respectively, compared to the same time period in 2018. The Northeast region had the highest growth in multifamily (8.1%) while the West recorded a decline in multifamily permits growth (-6.3%) during the last 12 months. Between June 2018 YTD and June 2019 YTD, eight states and the District of Columbia saw growth in single-family permits issued while 42 states registered a decline. The District of Columbia recorded the highest growth rate during this time at 89.5% from 57 to 108 while single-family permits in Montana declined by 24.9%, from 1380 in 2018 to 1037 in 2019. Year-to-date, ending in June 2019, the total number of multifamily permits issued nationwide reached 232,682. This is 1.6% ahead of the 229,013 at the same point in 2018. Between June 2018 YTD and June 2019 YTD, 28 states and the District of Columbia recorded growth while 22 states recorded a decline in multifamily permits.
SF Permits Fall in First Half of 2019
Want to build better homes and enjoy bigger profits? Then come to the 2020 Builders’ Show, Jan. 21-23 in Las Vegas. The show features more than 1,400 exhibitors from around the globe in 600,000 net square feet of exhibit space, showcasing the latest and most in-demand products and services. IBS 2020 offers the most up-to-date education the industry has to offer. It features sessions in seven tracks, taught by renowned building industry experts. OSHA is asking for comment on Table 1 of the agency’s Respirable Crystalline Silica Standard for Construction. OSHA seeks information by Oct. 15, 2019 on additional engineering and work practice control methods to effectively limit exposure to silica for items listed on Table 1 of the silica rule. For more information, contact Rob Matuga at 800-368-5242 x8507.
DHS Raises EB-5 Investment Requirements
The U.S. District Court for the Southern District of Georgia on Aug. 21 filed a decision that dismantles the Obama-era 2015 waters of the U.S. (WOTUS) rule. This is the first court to find that the substance of the 2015 rule violates the Clean Water Act. The court decision remands the 2015 WOTUS rule back to the Environmental Protection Agency and the U.S. Army Corps of Engineers to fix it. But the court did not vacate the rule. As a result, the Obama-era WOTUS rule remains in effect in 22 states, and the previous regulations issued in 1986 are in effect in the remaining 28 states.
Georgia Judge Dismantles WOTUS Rule
ESA Final Rule Will Streamline Permitting Could Be a $2.5 Billion Tax Court
In a victory for NAHB, the Trump administration recently released final rules updating the Endangered Species Act (ESA) Section 7 Consultation requirements and new regulations governing the designation of critical habitat that will improve the overall efficiency of the ESA’s permitting process. The final rule will make compliance less onerous for home builders and developers. While home builders support efforts to protect endangered species, they also believe that ESA regulations should be reasonable and structured in a way that delivers on the stated purpose of the rule.
DHS has put out new rules for the EB-5 Immigrant Investor program that increases the level of investment required for foreign-born investors seeking to participate. Immigrants seeking to use the EB-5 program to gain permanent residency status must invest at least $900,000 (up from $500,000) in areas designated by the U.S. Citizenship and Immigration Services as high unemployment or rural areas. They will need to invest at least $1.8 million (up from $1 million) for economic projects in all other areas.
OSHA Seeks Input On Silica Rule Comment
Don't Miss the 2020 Builders' Show
Resources to Promote Careers in Construction
In a possible sign of economic softening in the industrial heartland, home construction in the nation’s major manufacturing areas registered declines on a year-over-year basis in the second quarter of 2019, according to NAHB’s Home Building Geography Index (HBGI). When the manufacturing sector was exhibiting stronger growth in 2017, the rate of home construction in counties with more local manufacturing employment outpaced the rest of the nation. The second quarterly release of the HBGI focuses on the housing markets in the top manufacturing counties, which represent 10% of the nation’s single-family production output and 7% of multifamily construction. Home building in these areas posted a decline in the first half of 2019, and second quarter data reveal that single- and multi- family construction decreased by 3.8% and 4.1%, respectively, on a year-over-year basis.
Interest rates on loans for land acquisi- tion, development, and single-family construction (AD&C) continued to drift upward in the second quarter of 2019, according to results from NAHB’s quarterly AD&C Financing Survey. Relationships among the various subcategories of AD&C loans remained about the same, with the highest average interest rate – 6.59% – recorded on loans for land acquisition loans, followed by 6.49% on loans for land development, 6.21% on loans for speculative single- family construction, and 5.97% on loans for pre-sold single-family construction. In each case, the average rate in the second quarter of 2019 was higher than in either the first quarter of 2019 or the fourth quarter of 2018. The upward trend occurred while the Federal Reserve’s target federal funds rate remained stable and mortgage rates were trending downward.
Rates on AD&C Loans Trend Up
Home Building Slows in Heartland
October is Careers in Construction Month. If you are looking for ideas on how to highlight the value of a construction career, consider: Request a proclamation from your mayor or governor, to help NAHB make Careers in Construction Month officially recognized in every state. Anyone can file a proclamation for his or her governor or mayor to sign. Display posters to promote opportunities in residential construction and highlight specific careers. Promotional materials provided by NAHB can be downloaded and taken to a professional printer to make brochures, posters, flyers and pull up banners. Share information targeted for students by linking materials to nahb.org/trades which includes information such as salaries and job summaries for the most popular trades. Construction management career path information is also available.
BBHAffordable Project Enlivens Philly Community
Orange County Quarterly Meeting Friday, September 6th 2:00PM Spotsylvania County Bi-Monthly Meeting Monday, October 7th 3:00PM King George County Quarterly Meeting Friday, October 11th 10:00AM Stafford County Bi-Monthly Meeting Monday, October 14th 9:00AM Fredericksburg City Quarterly Meeting Friday, November 1st 9:00AM Caroline County Quarterly Meeting Wednesday, December 4th 11:30AM
Land Use Regs Foster Income Inequality
Excessive land use regulations contribute to growing income inequality in America, according to a new policy paper from the Harvard University Joint Center for Housing Studies. Author Michael Stegman, a senior housing policy fellow at the Milken Institute Center for Financial Markets, argues that the collective impact of decades of layering exclusionary zoning and land use controls is not just higher housing prices. These regulations, he says, are also a powerful contributor to declining rates of economic mobility and productivity growth, and widening disparities in the wealth of white and black Americans. While having local roots, exclusionary land use practices have clearly become a national problem that Stegman says requires bold national action. Stegman points out that over the last half century there have been at least five presidential commissions and federal initiatives created to address the insufficient supply of affordable housing. He writes of these commissions: “Though their respective contexts may vary according to the political economy of the time, their centers of gravity are strikingly similar. Each is based on the proposition that unnecessary land use regulations drive up production costs and drive down housing supply, especially for starter homes and affordable apartments. Generally, regulatory barriers include such things as land use restrictions that make developable land much more costly than it is inherently, zoning restrictions, off-street parking requirements, arbitrary or antiquated preservation regulations, residential conversion restrictions, and unnecessarily slow permitting processes.” Stegman’s paper, “Eliminating Exclusionary Land Use Regulations Should Be the Civil Rights Issue of Our Time,” draws on research findings of economists from across the political spectrum. Stegman notes a growing consensus that land use regulations in recent decades have contributed to growing income inequality nationwide.
SAVE THE DATES! Upcoming County Meetings
Partner Cornerstone Sponsor
Cornerstone Parter
Wednesday, September 11th Associates Committee Meeting 9:00 am- 10:00 am FABA Boardroom Wednesday, September 11th Membership Committee Meeting 10:00 am- 11:00 am FABA Boardroom Tuesday, September 17th Class: Putting your Website to Work 11:30 1m- 1:00 pm FABA Boardroom Thursday, September 19th Virginia Builders Summit 9:00 am- 4:00 pm Richmond Marriott Downtown, 500 E Broad St, Richmond Thursday, September 19th Hard Hat Networking 5:00 pm- 7:00 pm Splitsville 51 Towne Centre Blvd, Fredericksburg, VA Thursday, October 3rd Parade of Homes Awards and Celebration 5:00 pm- 9:00 pm Stevenson Ridge, 6901 Meeting St, Spotsylvania Courthouse, VA Wednesday-Thursday Discover Your Future Career Readiness Event October 9-10th 8:00 pm- 5:00 pm Fredericksburg Expo Center Tuesday, October 29th Model Homes Sales Safety Training 10:00am-11:30am Spotsy Sheriff's Office, 9119 Dean Ridings Ln, Spotsylvania Thursday, November 7th FABA Annual Meeting 7:30am- 10:00 am Riverside Center, 95 Riverside Pkwy, Fredericksburg VA Saturday, January 25th 2020 Presidents Gala 6:00 pm- 11:00 pm The Inn at Old Silk Mill 1707 Princess Anne Street, Fredericksburg, VA 22401
The Associates Committee 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.
Calendar at a Glance
Virginia Builders Summit & Expo
September 19, 2019 - Richmond The Virginia Builders Summit & Expo brings housing industry professionals together from across Virginia. Exhibitors will display products and services, build relationships, create brand awareness, generate leads, and be able to answer questions in person. The home building and housing market is constantly evolving. Attendees will look to the vendors at the Virginia Builders Summit and Expo for new products and services to separate them from their competition. 48 Exhibitors 8 Educational Sessions for Home Builders Registration: Member registration is $65. Registration includes expo floor access, education classes, and lunch! For more information, visit the event website, http://vabuilderssummit.com/
Get out the Housing Vote! Do you know which General Assembly candidates in your area support the housing industry? On November 5th, 2019, we encourage all FABA Members to head to the polls and cast your vote for the candidates that will serve as our voice in our local government, the Virginia House of Delegates, and State Senate. All 140 members of the Virginia General Assembly are on the ballot this year and the Home Builders Association of Virginia is working to elect candidates to office who truly understand that housing plays an important role in our local, regional, and national economies! The housing industry employs hundreds of thousands of individuals across the Commonwealth - and it's absolutely critical that we all head to the polls on Election Day! In the weeks leading up to the November General Elections, HBAV will send out a list of candidates who support our industry and information about your polling location. Thank you for your support of the housing industry!
-Bi-monthly or quarterly meetings with building officials from all five local counties and the city of Fredericksburg and meetings with BOS members and/or County Administrators. -Stafford County transportation impact fee reduction from $5,900 per lot to $2,999 -Changed definition of building height in Stafford County – most Single Family Dwellings now in compliance. -Changed Stafford County’s reserve drainfield requirements. -Pushing to make all submissions electronic – including upgrade of Stafford computer system and scanner, now more builder-friendly. -Currently working with Stafford on revised lighting standards. -In Stafford and Spotsylvania Counties, FABA facilitated VDOT agreement to allow water and sewer lines in the streets instead of in an easement on the lots. -FABA has spoken against fee increases in every jurisdiction in the past – most jurisdictions have not considered increases lately, but when they do, they typically seek our input. Most recently in April of this year two FABA board members spoke at Spotsylvania Board of Supervisors Meeting which resulted in a reduction of the proposed 20% fee increase to a phased-in increase over four years at 5% per year -Reduced SWM criteria for City of Fredericksburg – working with Friends of Rappahannock and City officials. -Coordinated the cluster mailbox issue with USPS. -Advocated for Proffer reform statewide
Legislative Impacts
Code Updates -- HBAV spent countless hours in meetings and testimony providing input and guidance on Building Code updates to save building costs: Defeated Mandatory Arc Fault – SAVING $250 per home Defeated mandatory fire sprinklers – SAVING $5000 per home Impact Fees – Advocated and successfully defeated two pieces of legislation to allow local government to collect impact fees on all new home permits. SAVING a minimum of $5k per home, up to as much as $20k per home (as it is in Maryland) Building Permit Fees – Advocated to pass legislation stating that building permit fees must only be used to run the building permit and inspection office. Fees can’t be used as a profit center. SAVING a minimum of $100 per home Tree Replacements -- Defeat of three pieces of legislation that would have required builders to replace all trees with the same size diameter as removed. SAVING a minimum of $500 per home Stormwater – Advocated to protect the construction general permit grandfather clauses and working on the new construction general permit for stormwater discharge. SAVINGS to developers in the thousands of dollars. Waste Management -- Stopped the regulations from requiring ALL dumpsters at building sites to be covered. SAVING a minimum of $100 per home. Plus, dozens of mandatory affordable housing bills were defeated! Total Snapshot of savings per home-$10,950
Summary of impact FABA had locally
Update on recent savings yielded from HBAV advocacy in the last 12 months
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Fredericksburg Area Builders Association Presents October 5-6 & 12-13, 2019
Come see what we're building for you! For tickets to the 2019 Parade of Homes Celebration and Awards, CLICK HERE
September 2019 Membership Report
New Associate Members (August 2019) Alside Building Products – spike Michael King Fawn Lake County Club - spike Laura Gilchrist Raven Hi Fi - spike Marc Simes Vulcan Materials Group - spike Marc Simes
Renewed Builder Members (August 2019) Aaronal Homes, Inc HIVEX Basement Finishing Company Hour Homes, Inc John Robb Custom Homes, Inc Mendleson Development Company Spartan Homes, Inc Steady Homes Design & Build Taylor Builders, Inc
Renewed Associate Members (August 2019) All American Paving & Sealing, Inc Anderson Propane Kitchen and Bath Shop BB&T EA Holsten Peoples Community Bank Premier Insurance Agency SmartCom Home Technologies Stafford County Dept of Public Works Stafford Printing ThePhipps Virginia Community Bank
The Membership Committee meets the second Wednesday of each month at 10 am. This group is responsible for coordinating membership recruitment and the new member mentor program to increase membership retention. Emphasis is placed on recruitment and retention of members with Spike Club, new member receptions, and networking opportunities. The 1st Vice President serves as co-chair.
New Builder Members (August 2019) VanZandt Restorations – spike Dan Sandoval
FABA Education
When: Tuesday, August 20th Time: 11:30AM-1:00PM Location: FABA Boardroom Description: The program is not meant to be a straight slide presentation. In fact, there are very few slides to go through. This is meant to be more of an open conversation about the things a website can do for your productivity, marketing and human resources among other things. I am hoping to spark an open conversation and answer any questions people may have on the best strategies to put their website to work for them. A website can be your best employee. It doesn’t take breaks or vacations. It’s relatively cheap to maintain. It can do the job or help do the job of just about every department in your business. You just have to let it. Presented by Michael Pollaci of Contractor Websites Plus
Putting Your Website to Work
Model Home Sales Safety Training
When: Tuesday, October 29th Time: 10:00AM-11:30AM Location: Spotsylvania Sheriff's Office 9119 Dean Ridings Lane, Spostylvania Courthouse Description: A course taught by a member of the Sheriff's Department designed to address safety concerns and steps that can be taken when staffing a model home or for real estate professionals when showing homes to future buyers.
Discover your future expo
Click here to Reserve YOUR COMPANY'S Booth
FAB Foundation
October 8-10th @ Fredericksburg Expo Center No cost for booth for businesses Multiple sponsor levels available Click Here for more information.
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 mmoore@fabava.com, or go to www.fabava.com and select FAB Foundation tab.
Why Volunteer? 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 about · 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
Community Service
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.
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2019 FABA Board of Directors
President Marc Simes WJ Vakos 1st Vice President Stacey Lampman Spaces Design Studio 2nd Vice President Scott Hine Assurance Financial Group Secretary Sara Fila Legacy Engineering Treasurer Jeremiah Horstick CORELOT Immediate Past President Gene Brown Atlantic Builders, Ltd. Associate Vice President John Reid Embrace Home Loans Executive Officer Maria Moore FABA Legal Counsel Charlie Payne Hirschler Fleischer Builder Director Dan Sandoval Republic Home Builders Builder Director Sean Halsey Halsey Homes Builder Director Tim Hall Tricord Homes Builder Director Teressa Taylor-Griffis Foundation Homes Builder Director Brandon Serbay Built Right Homes Builder Director Michelle Hall J. Hall Homes Associate Director Bruce Reese Legacy Engineering, PC Associate Director Frank Sigmon Builders FirstSource Associate Director Rusty Cowper Embrace Home Loans
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 Thurs, Sept 19th 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.
Legislative News
Update on recent savings yielded from HBAV advocacy in the last 12 months Building Code - (spent countless hours in meetings and testimony) Defeated Mandatory Arc Fault - $250 per home Defeated mandatory fire sprinklers - $5000 per home. Impact Fees - Defeated two pieces of legislation to allow local government to collect impact fees on all new home permits. Saved a minimum of $5k per home. Could be as much as $20k per home as it is in Maryland. Building Permit Fees - passes legislation stating that building permit fees must only be used to run the building permit and inspection office. Fees can’t be used as a profit center. Savings - min $100 per home. Tree Replacement - Defeated three pieces of legislation that would have required builders to replace all trees with the same size diameter that was removed. Saved a minimum of $500 per home. Stormwater - protecting the construction general permit grandfather clauses and working on the new construction general permit for stormwater discharge. Saved developers thousands. Also stopped the regulations from requiring ALL dumpsters at building sites to be covered. Savings of a min of $100 per home. Stopped dozens of mandatory affordable housing bills! Total Snapshot of savings per home-$10,950
Spotsylvania Community Development Important Changes -- Wednesday, September 4, 2019 All building permit applications received on or after September 4, 2019 will be reviewed and permitted under the 2015 Virginia Construction Code. Effective September 4, 2019 all plans for Single family homes will be accepted in electronic format ONLY for review and approval. Contractor will need to print a paper copy of the Approved plans to have on site for all Inspections. Effective September 4, 2019, all Commercial renovation and alteration work in or on existing buildings will be reviewed using the 2015 Virginia Existing Building Code.
Silver Cornerstone Sponsors:
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FABA works to educate, promote and represent the building industry while enhancing the region’s quality of life.
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 admin@fabava.com for more information.
JOB OPENINGS? Do you have job openings, apprenticeships, or internships to fill? Contact us today! FAB Foundation is working with FABA's workforce partners to help you fill these positions with qualified and trained local students. FABA also posts job openings on the FABA website. Contact admin@fabava.com for more information or assistance.
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