New Home Sales Hold Steady in July
FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE - CULPEPER
Sales of newly built, single-family homes rose 1% in July to a 708,000 seasonally adjusted annual rate, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This data reflected an expected upward revision to the June new home sales estimate. “While new home sales are up 6.9% on a year-to-date basis, they are down 27% in July compared to the same time last year,” said NAHB Chief Economist Robert Dietz. “Builders will need to watch local home prices relative to incomes, given recent gains in building materials and other construction costs.” Inventory continues to rise to more balanced market conditions of a 6.2-month supply, with 367,000 new single-family homes for sale, 26.1% higher than July 2020. While inventory is rising, a growing share is of homes that have not started construction. As of July 2021, 29% of new home inventory consists of homes not started cons- truction, compared to 20% a year ago. The median sales price was $390,500, up 18.4% from the $329,800 median sales price posted a year earlier, due to higher development costs, including materials. Regionally, on a year-to-date basis, new home sales rose in all four regions, up 7.5% in the Northeast, 10.6% in the Midwest, 9.1% in the South, and 0.5% in the West. These significant increases are due in part to lower sales volume during the COVID-19 crisis a year ago.
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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 5: Issue 9 September 2021
September 2021
Using Rent Payment History in Underwriting The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae will consider rent payment history as part of its underwriting process so that home buyers with limited credit histories can more easily obtain home loans. This change will give qualified renters who may have limited credit history, but a strong rent payment history, new opportunities for homeownership. Fannie Mae’s Desktop Underwriter® will enable single-family lenders – with permission from mortgage applicants – to identify recur- ring rent payments in the ap- plicant’s bank statement data. Register for NAHB's Fall Leadership Meetings Registration and hotel reser- vations are open for the NAHB Fall Leadership Meetings taking place Oct. 11-15 at the Marriott Marquis in Houston. NAHB is working closely with Marriott to ensure that the health and safety of all attendees is a priority, and that applicable government policies designed to slow the spread of COVID-19 will be followed.
NAHB Opposes Revision of WOTUS Rule NAHB Chairman Chuck Fowke spoke out against the EPA’s efforts to revise the Navigable Waters Protection Rule (NWPR) that defines the “waters of the United States” (WOTUS) during a recent roundtable discussion with federal policymakers, farmers, home builders and composite makers. NAHB is a strong proponent of the NWPR because it outlines clearly which waters fall under federal jurisdiction.
Supreme Court Strikes Down Eviction Ban The U.S. Supreme Court issued a 6-3 decision Aug. 26 that said it was unlawful for the Centers for Disease Control and Prevention (CDC) to unilaterally extend its eviction moratorium through Oct. 3, 2021. Before the Supreme Court issued its decision, nearly all NAHB members were exempt from the CDC eviction moratorium while all other landlords nationwide had to comply. That exemption was in place because of a successful NAHB lawsuit in October 2020 contesting an earlier federal eviction moratorium.
IBS Will Be In-Person, Feb. 8-10, 2022 Registration is open for the 2022 NAHB International Builders’ Show® (IBS). This year’s live, in-person event will be in Orlando, Feb. 8-10. The show floor is packed with exciting new products and opportunities to connect with the industry’s top manufacturers. Purchase an All-Access Pass or 1-Day Education + Expo Pass for education sessions led by top industry experts. And be sure to check out NAHB’s IBS show homes, The New American Home® (TNAH) and The New American Remodel® (TNAR) to see emerging design trends and leading-edge products. products.
Lot Values Surge at Record-Breaking Pace
Treasury Pushes Rental Assistance The Treasury Department on Aug. 25 announced additional policies to encourage state and local governments to expedite emergency rental assistance to eligible renters and landlords. Congress has appropriated $46.5 billion for emergency rental assistance but state and local governments have only distributed less than $6 billion to date. The guidelines announced by Treasury are designed to streamline the application process and help state and local governments get rental assistance to those in need. In a separate letter to state and local emergency assistance rental program grantees, Treasury strongly encouraged them to provide greater protections for tenants facing evictions.
Lot values for single- family detached homes started in 2020 surged 18% to a record-high median lot price of $53,000, according to NAHB’s analysis of the Cen- sus Bureau’s Survey of Construction data. Lots are most expen- sive in the New England region, where half of all single-family detached (SFD) spec homes started in 2020 reported lot values of more than $120,000. Sec- ond most expensive is the Pacific division, with a median lot value of $103,000 in 2020. Least expensive is the South Atlantic, which includes Florida, Georgia and the Carolinas. Half the of the SFD spec homes started in the South Atlantic region in 2020 had lot values of $35,000 or less.
Construction Workers' Earnings Half of payroll workers in construction earn more than $50,460 and the top 25% make at least $71,000, according to the 2020 Bureau of Labor Statistics Occupational Employment Statistics Survey data and analysis by NAHB. In comparison, the U.S. median wage is $49,150, while the top 25% of workers make at least $67,410. In general, construction trades that require more years of formal education or special training tend to offer higher annual wages. Half of plumbers in construction, for example, earn more than $55,920, with the top quarter making over $75,640. Electricians’ wages are similarly high. Half of carpenters working in construction earn over $49,730, with the top quarter making more than $64,670.
Due to the costs businesses face if they are found to have wrongly classified their workers, it is important to make hiring decisions with a clear understanding of how the law views such workers. The law permits the use of independent contractors, provided such workers are not “employees” under existing tax, employee benefit, and labor and employment laws. Engaging independent contractors instead of employees can result in considerable cost savings and increased workforce flexibility, and most home builders work extensively with contractors. If an employee is classified as an indepen- dent contractor, the “employer” is not required to pay and/or withhold a variety of payroll‐related taxes, fees and benefits (Social Security and Medicare taxes, local, state and federal income taxes, unemploy- ment insurance, workers compensation, pension and health benefits, etc.). Not only are these costs shifted to the individual worker, the independent contractor is also not fully protected by various employment laws (minimum wage and overtime requirements, workers compensation protection, etc.). But proper classification of workers as independent contractors is not as simple as a written agreement between the parties. No single test exists to evaluate indepen- dent contractor status for all purposes. And the consequences of misclassifying individuals as independent contractors may result in large penalties or damages awards, including unpaid overtime comp- ensation, tax and insurance obligations, liquidated damages, and civil penalties. For more information on engaging independent contractors, consult with your local attorney or seek the services of a qualified professional experienced in labor and employment matters.
Key Distinction: Employee vs. Independent Contractor
Upcoming Meetings & Events
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October 7th, 12:00 PM FABA Fall Golf Pendleton Golf Course October 13th, 9:00AM Associates Committee Hybrid Meeting (Zoom link or at the FABA office) October 13th, 10:30AM Membership Committee Hybrid Meeting (Zoom link or at the FABA office) October 21st, 5:00PM Hard Hat sponsored by Atlantic Builders October 21st, 8:30AM Legislative Committee (Zoom Link) October 27th, 11:30-3:30PM Fall Sporting Clays Event Remington, VA October 27th, 2:00PM Community Service Committee Hybrid Meeting (Zoom Link or at the FABA office)
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Calendar at a Glance
Membership Committee
It is membership drive month! FABA is going in for the touchdown this October! Gather your players now as we enter the season. Know someone interested in the association, now is the time to make the introduction. The season begins October 2021 as we kick off the fall membership drive. Don't forget, membership drive months means extra Spike points for you!
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.
Chrair- Mike King- Rayssiddingcompnay@gmail.com Rays
Associates Committee
2021 Events FABA Awards Spring Golf Clay Shoot Bingo Crab Feast and Auction Disc Golf Twilight Golf 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
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.
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 October 1st, 1:00PM Fredericksburg County Bimonthly Meeting Zoom October 1st, 9:00AM Spotsylvania County Bi-monthly Meeting Zoom October 4th, 3:00PM Spotsylvania Builder Round Table Zoom Meeting October 5th, 12:00 PM Stafford County Bimonthly Meeting Zoom October 11th, 9:00AM
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. Next Meeting: Thursday, 10/21/21, 8:30 AM - Zoom Link
Blocked legislation to allow Project Labor Agreements in Zoning Ordinances
Up next! for the Community Service Committee! The Trees of Hope will take place in November this year. The holiday showcase benefits Hope House, whose mission is to provide homeless mothers and their children with safe housing and opportunities to transition to successful, independent living
Chair - Greg Schmidt, greg@pestsolutionsva.com
Take a look at our Fall Community Service day with 516 Project
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. The next hybrid meeting is October 27th at 2:00PM. Zoom link
The Young Professionals are looking for more members. We want you! Monthly meetings will begin soon and more opportunities are coming soon, join now! Know someone at your company who may be interested or benefit from our committee? Send them our way!
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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 Stafford High School Spotsylvania High School Gladys H Oberle School Caroline High School James Monroe 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 rasied $1700.00 at the crab feast with this barrell of cheer! Learn more about FAB here Click here
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.
New 2022 Cornerstone sponsorship opportunities on sale soon!
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
The 2021 Nomination commitee has been selceted Scott Hine Stacey Lampman Jeh Hicks
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