ulletinvolume 22 november/december 2008 issue 6 b uilder b ulletin congress should consider...

12
Volume 22 November/December 2008 Issue 6 Builder Bulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit foreclosures in order to pull the U.S. economy out of recession, NAHB Chief Economist David Seiders said last week at the association’s Fall Construction Forecast Conference. The steep decline in sales of new single-family homes should be coming to an end in early 2009, Seiders said, setting the stage for “tepid” improvement in new residential construction later that year. However, he warned, that outcome has grown increasingly uncertain in light of the turmoil that has gripped world financial markets. “Things are a lot worse than any of us had anticipated six months ago,” Seiders said, and the nation’s housing market – which is the root cause of the collapse in confidence among lenders – has continued to spiral downward. “Risks are piling up on the down side. These are tough times, no question,” he said. While remaining reasonably optimistic that a housing recovery is beginning to take shape, “the uncertainties out there are unprecedented,” Seiders said, and there is a growing risk that today’s major housing contraction could get even worse. The level of confidence among builders surveyed in October for the monthly NAHB/Wells Fargo Housing Market Index fell to the lowest point since the series was started in 1985, he noted. “The bottom line is that the financial crisis can’t get much better until the thing that started this thing off, housing starts, gets better,” said Maury Harris, U.S. chief economist for UBS, who also spoke at the conference. On the brighter side, Seiders said that housing in the first half of 2009 should be helped by the $7,500 tax credit available to first-time home buyers; legislative efforts to address foreclosures; the continuation of affordable mortgage rates; and the availability of fixed-rate mortgage financing through Fannie Mae, Freddie Mac, the Federal Housing Administration and the Department of Veterans Affairs. Citing an increase in pent-up demand for housing, he added that declines in home prices and increases in personal income have helped to restore housing affordability to the more normal levels that existed prior to the peak of the housing boom. However, even as the demand for housing begins to grow, housing production will be constrained by tighter credit for the loans builders and developers need to break ground on new residential projects, he said. NAHB is forecasting 936,000 total housing starts for 2008, a 30.2% decline from the 1.34 million homes produced last year. Starts in 2009 are projected to slide 16.2% further, to 784,000 units, and 2010 would bring production up to the 1.0 million level. HOUSING STIMULUS ‘SORELY NEEDED’AS DOWNSIDE RISKS PILE UP, NAHB CHIEF ECONOMIST SAYS

Upload: others

Post on 04-Nov-2020

3 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: ulletinVolume 22 November/December 2008 Issue 6 B uilder B ulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit

Volume 22 November/December 2008 Issue 6

Bu

ild

er B

ull

eti

n

Congress should consider providing further “sorelyneeded” economic stimulus to encouragehomeownership and limit foreclosures in order topull the U.S. economy out of recession, NAHB ChiefEconomist David Seiders said last week at theassociation’s Fall Construction Forecast Conference.

The steep decline in sales of new single-familyhomes should be coming to an end in early 2009,Seiders said, setting the stage for “tepid”improvement in new residential construction laterthat year. However, he warned, that outcome hasgrown increasingly uncertain in light of the turmoilthat has gripped world financial markets.

“Things are a lot worse than any of us hadanticipated six months ago,” Seiders said, and thenation’s housing market – which is the root cause ofthe collapse in confidence among lenders – hascontinued to spiral downward. “Risks are piling upon the down side. These are tough times, noquestion,” he said.

While remaining reasonably optimistic that a housingrecovery is beginning to take shape, “theuncertainties out there are unprecedented,” Seiderssaid, and there is a growing risk that today’s majorhousing contraction could get even worse.

The level of confidence among builders surveyed inOctober for the monthly NAHB/Wells FargoHousing Market Index fell to the lowest point sincethe series was started in 1985, he noted.

“The bottom line is that the financial crisis can’t getmuch better until the thing that started this thingoff, housing starts, gets better,” said Maury Harris,U.S. chief economist for UBS, who also spoke at theconference.

On the brighter side, Seiders said that housing inthe first half of 2009 should be helped by the $7,500tax credit available to first-time home buyers;legislative efforts to address foreclosures; thecontinuation of affordable mortgage rates; and theavailability of fixed-rate mortgage financingthrough Fannie Mae, Freddie Mac, the FederalHousing Administration and the Department ofVeterans Affairs.

Citing an increase in pent-up demand for housing,he added that declines in home prices and increasesin personal income have helped to restore housingaffordability to the more normal levels that existedprior to the peak of the housing boom.

However, even as the demand for housing beginsto grow, housing production will be constrainedby tighter credit for the loans builders anddevelopers need to break ground on new residentialprojects, he said.

NAHB is forecasting 936,000 total housing startsfor 2008, a 30.2% decline from the 1.34 million homesproduced last year. Starts in 2009 are projected toslide 16.2% further, to 784,000 units, and 2010 wouldbring production up to the 1.0 million level.

HOUSING STIMULUS ‘SORELY NEEDED’ AS DOWNSIDE RISKS PILE

UP, NAHB CHIEF ECONOMIST SAYS

Page 2: ulletinVolume 22 November/December 2008 Issue 6 B uilder B ulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit

BUILDER BULLETIN NOVEMBER/DECEMBER 2008 PAGE 2

FREDERICK COUNTY

BUILDERS ASSOCIATION

BOARD OF DIRECTORS

2008

RICHARD M. JOHNSONPresident

NAHB Director

ROBERT WORMALDFirst Vice President

NAHB Director

MIKE BODNARSecond Vice President

HUGH GORDONTreasurer

ERIC CIAZZASecretary

TERRE RHODERICKImmediate Past President

KEN ABRECHT

BRIAN DRAWBAUGH

SALVATORE FIORENTINO

THOMAS HYDE Jr.

THOMAS LINTON

BRENDAN MADDEN

RUSTY MIKULAS

RICHARD RATLIFFDirectors

BOB MOCHIPresident

Land Use Council

LAWRENCE C. SCHAFFERT, CGRPresident

Professional Remodelors Org.

BARRY WELLERPresident

Sales & Marketing Council

J. MAURICE CARLISLE

ROBERT HILTON

JIM MACGILLIVRAY

FRED W. RUDY

DAVID C. SMITH

DOLORES WILSONFCBA Life Directors

HARRY T. deMOLLBoard Attorney

HARRY T. deMOLL

LAWRENCE C. SCHAFFERT, CGRState Directors

DICK JOHNSONFREDERICK COUNTY BUILDERS ASSOCIATION PRESIDENT

The threat of recession is behind us. TheGovernment Rescue package is beginningto work. The BoCC, faced with a severebudget shortfall, has lifted the moratoriumand has adopted a pro-growth attitude. Inaddition, the BoCC is crafting legislation toreduce Impact Fees and revise the Newmarket Region Plan to stimulate manageablegrowth in line with Govenor Glending’sSmart Growth Initiative. They are in theprocess of drafting a DRRA for LakeLinganore that will provide for the muchneeded infra-structure improvements in thisarea of the County. The BoCC is enthusiasticabout meeting with the Town of New Marketto develop a plan for a New Market Bypassthat will service this area of the County foryears to come.

Believe this and I will tell you more. Thetruth is that the BoCC is facing a budgetshortfall of approximately $7M which theyattribute in large part to the reducedtransfer tax revenue. From what I read,the housing starts in the County are under400 thus far this year. I believe the Countybudgeted for 1100. As the County hasstated, there are about 2,500 new jobscreated in this County each year and wehave one of the lowest unemploymentrates in the country. I don’t believe thatthe full impact of the economic downturnhas hit this county yet. In addition, our

housing industry will not support theanticipated job growth.

There needs to be a serious dialoguebetween the Builder’s Association andmembers of the BoCC to see what steps canbe taken in Partnering together to mitigatethe infrastructure problems, school and lifesafety issues to promote responsiblegrowth. Our input is vital to develop aprocess that will benefit all of the citizens ofFrederick County both new and old.

In my opinion, unless something is doneto promote this County as a businessfriendly community, the repercussions willlast for many years to come and we thecitizens are going to pay dearly eitherthrough reduced services, higher taxes ora combination of both.

On the economic front, the picture is notpretty. According to the economists thatparticipated in the Fall economic forecast,they all were pretty much on the same page.They believe that things will begin to turnaround by the end of this year and possibilitythe first quarter of next year followed by aflat period while inventory is worked off. Bythe end of 2009 the picture should lookbrighter with housing starts improving into2010 and climbing steadily into 2012 toapproximately 1.6M. Housing prices arestarting to stabilize at the 2004 levels.

LARRY SCHAFFERT, CGRPROFESSIONAL REMODELERS ORGANIZATION PRESIDENT

By the time you are reading this, we willhave a new President. I won’t make anypredictions about that, but I will predict thenews media will, all of the sudden, find somegood news about the economy. We couldall use some good news. Like all cycles thisone will turn around eventually. Perhapsthe election will provide the catalyst to movethe consumers to start buying again.

Marketing the right message to today’sbuyer is one of the ways we can motivatethe buying public to buy. At our last PROmeeting we had Brian Flook of PowerMarketing as our speaker. For those of youwho have heard Brian speak, I am sure youwill agree he is a dynamic speaker. Welearned about the changing marketplace, and

the importance of the internet in today’sbusiness marketplace. Brian also spokeabout the concept of your “Unique SellingProposition”. If you are not sure what thatis, you can find out about it by readingBrian’s book, “Master What Matters”,available at his website www.power-marketing.com . The book is focused onnew home sales, but the principals apply toany business.

As we wind up this year and look at 2009,PRO will continue to focus on training andeducational topics that you can use in yourbusiness. Even in tough times, it is importantto stay on the cutting edge with productsand processes in your company. We lookforward to seeing you at our next meeting!

Page 3: ulletinVolume 22 November/December 2008 Issue 6 B uilder B ulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit

BUILDER BULLETIN NOVEMBER/DECEMBER 2008 PAGE 3

Energy efficiency is on everyone’s mindslately. From higher gas prices to higher utilitybills, people all over the country are feelingthe pinch. Maryland homebuilders areresponding to this trend by constructinghomes that incorporate a variety of energy-efficient features – such as high-efficiencyheating and cooling equipment and high-performance windows. But how canhomebuyers know for sure if the home theyare buying is really energy efficient? Bylooking for the ENERGY STAR label. To earnthe ENERGY STAR, a home must be built tomeet strict guidelines for energy efficiencyset by the U.S. Environmental ProtectionAgency and be verified by an independenthome energy rater.

ENERGY STAR qualified homes achieveenergy savings through proven, reliablebuilding technologies. Builders work withhome energy raters to select from a numberof features such as effective insulation,high-performance windows, tight

JOIN THE 100 BUILDERS IN MARYLAND THAT ARE REVOLUTIONIZING HOMEBUILDING BY CONSTRUCTING ENERGY STAR QUALIFIED HOMES

construction and ducts, efficient heatingand cooling equipment, and efficient lightand appliances. As a result, ENERGY STARqualified homes are at least 15% more energyefficient than homes built to the 2004International Residential Code (IRC), andincludes additional energy-saving featuresthat typically make them 20–30% moreefficient than standard homes.

Nationwide, over 6,000 builders areconstructing ENERGY STAR qualifiedhomes, with over 100 builders in Marylandalone. Approximately 850,000 ENERGYSTAR qualified homes have been builtthrough the end of 2007, with over 8,000 ofthose homes constructed in Maryland. Tolearn more about ENERGY STAR and howyou can become a participating ENERGYSTAR builder or Home Energy Rater, visitwww.energystar.gov

Jonathan Passe, Communications CoordinatorENERGY STAR Residential ProgramsU.S. Environmental Protection Agency

Frederick CountyBuilders AssociationMembers who areEnergy Star Partners:

Bank of AmericaCountrywide Home LoansDrees HomesForty West Builders, Inc.Miller and SmithMitchell & BestHomebuildersNVHomesOrchard at New Market LLC/Seawright HomesParkwood HomesPulte Homes - MarylandStructural Systems, Inc.

Engineering

Planning

Surveying

Environmental Sciences

92 Thomas Johnson Drive, Suite 170

Frederick, MD 21702

T: 301.696.1240 F: 301.831.4865

www.LSAssociates.net

53 East Patrick StFrederick, MD 21701Phone 301-696-1240

FAX 301-831-4865www.LSAssociates.net

Mark Lancaster, Lancaster Craftsmen Builders,(left) representing NAHB BuildPac, presents Con-gressman Roscoe Bartlett with a check for hiscongressional campaign in appreciation for hissupport of local and national housing issues.

Dick Johnson, FCBA President, manages a smile de-spite the gloomy report on local housing values pre-sented by Wayne Six, Six & Associates, (center) at theSeptember general membership meeting. Bob Denk,an NAHB economist added his own somber assess-ment of the new housing market in suburban Md.

Frank Taylor, carpenter instructor at the Career & TechCenter and coordinator of its student-built houseproject, reviews the floor plan designed by CTC stu-dents with one of 900 parents and students who visitedthe Center’s annual Career Night. The event is held tointerest high school students in the construction tradesand other career-track programs the center offers.

Bob Mochi, President of the Land Use Council,thanks Joe Adkins, Deputy Director of Planningfor the City of Frederick, following his presentationduring the September LUC general membershipmeeting. Joe addressed a range of issues includingannexations, water allocations and the update ofthe Land Management Code.

Page 4: ulletinVolume 22 November/December 2008 Issue 6 B uilder B ulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit

BUILDER BULLETIN NOVEMBER/DECEMBER 2008 PAGE 4

DONNA KRAFT

October was once again ushered in by theLand Use Council’s annual golf outing atMusket Ridge Golf Club on Friday, October3rd. With the late summer sun warming theplayers, everyone eased their carts to theirappointed holes and play began. As always,tee shots and long drives were the challengeof the day, as was finding the ever elusivebeer cart. Once play was over and scoresturned in, everyone proceeded to thebanquet room for dinner and awards.Zoltan Nagy announced the day’s winners.

Special games:• Longest Drive, Hole #4 – Scott Palmer• Longest Drive, Hole #10 – John McConnell• Closest to the Pin, Hole #8 – DougMacMaster• Closest to the Pin, Hole #13 – Dave Wiegand

Tournament winners:• 3rd Place – Tyler Donegan Real Estate(Brian Duncan, Greg Reaver, Dave Wiegandand Roger Schroeder)• 2nd Place – PNC (Scott Palmer, BruceCubbage, Chris Forrest and Kevin Kurtyka)• 1st Place – McShea & Company (Brad Benna,Tim McShea, Bill Meissner, Bob Wrightson)

On behalf of the Land Use Council, I wouldlike to thank this year’s tournamentsponsors. Silver Sponsors: ARM Group,Inc., BB&T, Harris Smariga & Associates,Miles & Stockbridge, Morgan-Keller, Inc.,The Columbia Bank, and Thompson Gas.Gold Sponsors: Buckeye Development,G.R.M.S.R., LLC, Hillis-Carnes EngineeringAssociates, Matan Development, PleasantsDevelopment, Rodgers Consulting, RyanHomes, Specialized Engineering, and TylerDonegan Real Estate. A special thank yougoes to Waynesboro Construction for beingthis year’s Weather Sponsor and orderingsuch a beautiful day.

I would like to take this opportunity to thankthe staff from Musket Ridge for another greatday of golf. Also, thanks to the 2008 LUC golfcommittee, Zoltan Nagy, BuckeyeDevelopment; Brian Duncan, Tyler DoneganReal Estate; Greg Seldon, SpecializedEngineering; and Chris Smariga, HarrisSmariga & Associates for their help. Finally, aspecial thank you to Shelly Lambert of BuckeyeDevelopment and my daughter, Brandy Kraft,for their help the day of the tournament.

County Mandated APFO for Municipali-ties and other “Good Stuff” coming at you!

The Board of County Commissioners is con-sidering changing the schools test of theAPFO to include municipalities. Based ontheir meeting with the municipalities in Au-gust, they are working with the municipali-ties to have them volunteer to adopt ormodify their APFO to ensure there is an ap-propriate school threshold.

One suggestion was that the threshold per-centage be higher in the municipality to pro-vide for incentive for the development toannex into the municipality but develop withsome level of adequacy that they would haveto meet. This would provide the County withthe ability to plan through the CIP for longterm projects that are needed to mitigate theimpacts on the schools. There was also talkof the test as it relates to Minor Subdivisions.

In October the BOCC had a workshop onthe APFO Schools Test Amendments. Theamendments are identical to the ordinanceconsidered in July 2006 but back then didnot a get a vote to take it to public hearing.This time it most certainly will. The BOCCwill probably take it up early next year to go

to public hearing and may include the Mu-nicipalities component.

On another front, the County Comprehen-sive Plan Update continues to roll along. Staffhas presented the Land Use Plan and Gen-eral Plan Maps. Due to time constraints, theyare not having a property owner applicationprocess for LAND USE requests at this stageof the update. Property owners should sub-mit letters or e-mails about their ideas regard-ing plan designations to the County.

The Planning Commission public hearing onthe Draft Plan would be the first formal op-portunity to request changes for a property.When a recommended plan is given to theBOCC they do expect to have an applica-tion period for plan and/or zoning requeststhat will be considered during the BOCC’sreview but by that time IT MAY BE TOOLATE. Again we suggest you submit yourLAND USE request in writing NOW.

The General Plan update has three majorcomponents to it: the Community Plan, Agri-cultural and Rural Communities Plan and theGreen Infrastructure plan. You can get a re-view of these components from the PlanningCommission Workshop #14 October 15 2008.

So strap on your helmet real tight…. 2009will bring even more changes and we needyou in the game!

LUC ANNUAL GOLF OUTING

LAND USE COUNCIL GOLF TOURNAMENT, OCTOBER 3

BOB MOCHILAND USE COUNCIL PRESIDENT

Page 5: ulletinVolume 22 November/December 2008 Issue 6 B uilder B ulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit

BUILDER BULLETIN NOVEMBER/DECEMBER 2008 PAGE 5

WORKPLACEORKPLACEORKPLACEORKPLACEORKPLACE

SAFETYAFETYAFETYAFETYAFETY TIPSIPSIPSIPSIPS

PROVIDED BY PREMIER SAFETY SOLUTIONS

It’s Shocking . . .Workplace deaths can occur in a variety ofways, but have one thing in common . . . TheyWere Preventable. Take this quiz to find outhow much you know about electricity.1. Overhead electric lines are insulated toprotect workers. ______ True ______False2. Overhead lines cannot be safety de-en-ergized.______ True ______False3. Most power tools do not carry enoughcurrent to kill a person.______ True ______False4. When a grounding prong is present, atool is safety grounded.______ True ______False5. The presence of birds on a power lineindicates there is no electricity flowingthrough the line.______ True ______False6. If a piece of heavy equipment contactsan overhead line, the operator should leapout of the equipment immediately.______ True ______False7. Carrying an extension ladder in a verti-cal position is not only easy, but safe.______ True ______False

Answers :The answer to each of the questions aboveshould have been false. Any wrong answercould cost you your life, so be absolutelysure you are working safely with electricity.

The membership committee has been busydevising ways to increase the value of yourmembership with the Frederick CountyBuilder’s Association. There are threeevents that we are promoting that we hopewill create a positive outlook during thesechallenging times!

On Thursday, November 13th, from 4:00 p.m.until 6:00 p.m. at the Quality Hotel &Conference Center on Baughman’s Lane weare holding the third annual BuildingConnections. We currently have nine areabuilders signed up to provide you withinformation about the opportunities forbusiness available with each of their firms.Now is the time to be building newrelationships and to be finding those

opportunities that could exist once themarket improves. If you’re not takingadvantage of this chance to network,someone else will, so sign up with Clasinaat the FCBA office to attend, asap! (301)663-3599 x102.

This year we are organizing a “Dash forCash” membership drive that will officiallybegin on December 1st and continue throughthe end of February 2009. There is a $500cash prize to the FCBA member thatsponsors the most new members duringthat three month period. We have prospectsavailable to call and of course we alwaysencourage you to get on the phone and callyour business associates as well! Buildersshould have a particularly easy time havingsubcontractors and suppliers to source. Wehope to find a minimum of twenty peoplethat will want to step up and help us tocontact our data base of local builders andremodelers and compete for the top prize of

$500! Visit www.frederickbuilders.org formore information on this contest.

We are in the early stages of organizing acampaign that will promote services thateach member would be willing to provide ata discount to fellow members of the FCBA.Look for an e-mail or flyer soon that willrequest information as to what service orgood that you can offer. We already haveseveral offers available, but we anticipatethat we can dramatically expand the dealsthat are available and publish them on theweb for easy access. This will help us toadvance our “Use a Member First”campaign too!

If you have any suggestions on how wecan make your membership morevaluableplease contact one of your membershipcommittee members today.

Being a member of the FCBA has significantadvantages. It’s a great time to get involved!

BRENDAN MADDENMEMBERSHIP COMMITTEE CHAIR

Operating a chain saw is dangerous, how-ever, the potential for injury can be mini-mized by using proper personal protectiveequipment and safe operating procedures.

Before starting a chain saw:� Check controls, chain tension, all boltsand handles to ensure that they are func-tioning properly and they are adjusted ac-cording to the manufacturers instructions.� Be sure the chain is always sharp andthe lubrication reservoir is full.� Start the chain saw while on the groundor firm support. Drop starting is neverallowed.� Start the saw at least 10 feet from fuel-ing area and with the chain brake engaged.

Fueling a chain saw:� Dispense fuel at least 10 feet away fromany source of ignition and no smoking dur-ing fueling.� Never attempt to fuel a saw while it isrunning or hot.� Use approved containers for transport-ing fuel for the saw.

General safety tips:� Clear dirt, debris, small tree libms androcks from the saw’s chain path. Look fornails, spikes or other metal in the tree be-fore cutting.� Shut saw off or engage the chain brakewhen carrying the saw on rough or un-even terrain.� Keep your hands on the saw’s handlesand maintain secure footing while operat-ing the saw.� Proper personal protective equipmentmust be worn: hand, foot, leg, eye, face,hearing and head protection.� Do not wear loose fitting clothing.� Watch for branches under tension - theymay spring out when cut.� Be careful that trunk or tree limbs donot bind again the saw.� Gasoline-powered chain saws must beequipped with a protective device thatminimizes chain saw kickback.� To avoid kickback, do not saw with thetip of the blade. Always keep tip guard inplace, if equipped with one.

Chain Saw Safety Tips

Got Light?The days are getting shorter and manyworkers are beginning their day in thedark. Construction areas, aisles, stairs,ramps, runways, corridors, and storageareas where work is in progress must beadequately lighted (5 foot candles).

Page 6: ulletinVolume 22 November/December 2008 Issue 6 B uilder B ulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit

BUILDER BULLETIN NOVEMBER/DECEMBER 2008 PAGE 6

BRYAN PATCHANEXECUTIVE OFFICER

NEW! Omaha Steaks is offering a10% discount to members.For details on this offer and other memberdiscounts, visit www.nahb.org/MA.

Frederick Co. Business BlogFrederick Community College has launched ablog for and about the Frederick County busi-ness community at www.watercoolerview.com.Topics are targeted to employees, managers,small business owners and other business pro-fessionals. The site currently includes posts oncustomer service, workplace dissatisfaction dur-ing a down economy, and creating a better workenvironment, written by members of FCC’s cus-tomized training and continuing education team.

On the Economy withAnirban Basu

You’ve watched the TV news, listened tothe political pundits, and witnessed theeconomic rollercoaster. Now is your chanceto find out what this all means to Maryland’seconomy and Frederick’s residents andbusinesses. If you live and work inMaryland, this is a presentation not to bemissed. A Q&A follows the presentation.

Speaker: Economist Anirban BasuDate: November 18, 2008Time: 7-9 PMLocation: Frederick Community College,

Jack B. Kussmaul Theater7932 Opossumtown Pike

Open to the public. Pre-registrationrequested. Call 301-631-1207 or [email protected] to register.www.wix.com/moorewealth/economic-symposium-2008

Attention SmallVolume Builders

NAHB’s Single Family Small Volume Build-ers Committee serves the unique businessneeds of those who build 25 or fewer homesa year. The committee produces informationand resources specifically designed to helpsmall-business owners.

Please visit www.nahb.org/page.aspx/category/sectionID=970 for more informa-tion. If you are interested in receiving thecommittee’s newsletter “Focus”, please con-tact [email protected].

I am grateful to report that FCBA’smembership is holding up quite well despitethe comatose state of the housing industryand the chaos in the national economy. Ourmembership topped out last year at 353members; in September we were down to332, a nominal loss of six percent over thelast 12 months. Thanks to our loyalmembers, FCBA has seen much less of adrop than other associations I keep in touchwith. I hope this is a reflection of the valueFCBA members perceive in continuing theirmembership even in difficult times like these.

As a matter of fact, it is a commonly heldnotion that associations like ours play amore valuable role for their members whentimes are tough than say a few years agowhen the housing industry was at its peak.How quickly our world turned up sidedown. The County reports that 379housing units were built this year throughAugust. This compares to 824 units builtin the same period in 2007 and 1,692dwelling units built in 2005 – a 78 percentdrop-off in residential construction inFrederick County in three years. This is acataclysmic shock that is reverberatingthroughout our industry and being felt byeveryone whose business is tied one wayor another to residential construction.

How can FCBA help? Maybe the mostimportant thing we can offer right now ismoral support. It can get awfully lonelytrying to make sense of how this mess cameabout and how you could have done thingsdifferently and saved yourself from muchof the stress you’re feeling now. No onecan understand what you’re going through

like another person in the same businessas you. Look toward your colleagues whoshare some of your same anxieties and canempathize with what you consider to beyour own unique problems. Now is notthe time to cut yourself off from those whoare most likely to be able to help you untilwe all get back on our feet.

Connect with other members, if not for themoral support, then for the socialsatisfaction or the incidental businessinformation you can pick up in casualconversations. Whether it is a businessroundtable like the one the Remodelers areplanning for their next meeting or the freetime at the beginning of a generalmembership meeting or a committeemeeting, what you gain from othermembers is the secret behind associationmembership. As the name implies,Building Connections, which is coming upshortly is another example of how toexpand your professional network andpossibly discover new businessopportunities. A couple of years ago, theSales & Marketing Council almost foldedfor lack of interest primarily because salescame easy back then. Today the Councilis back in business with megawatts ofenergy and more excitement than even inits earlier days before the housing boom.I consider it a perfect case study of therole an association can play in bringingpeople together for their own benefit aswell as for the benefit of their industrywhen the need is most dire.

More than a trade association, FCBA is acommunity of committed individuals whocare about our industry, who beyond ourown families care about our friends andneighbors and, most importantly, careabout one another.

Page 7: ulletinVolume 22 November/December 2008 Issue 6 B uilder B ulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit

BUILDER BULLETIN NOVEMBER/DECEMBER 2008 PAGE 7

The Frederick County Builders As-sociation is dedicated to offer itsmembers the tools they need tohelp their business succeed. If youare interested in a particular edu-cation program, please let us know.Contact Clasina at 301-663-3599 x102or [email protected].

JOIN THE ELITE RANKS OF TOP

BUILDING INDUSTRY PROFESSIONALS

The Certified Graduate Builder (CGB) andCertified Graduate Remodeler (CGR)designations are your sign to clients andcolleagues that you are a member of thisrespected group of professionals.

The first step towards these designations istaking the Builder Assessment Review (BAR)for CGB, or PREP for CGR. Results will showwhere your knowledge is strongest, where itis weakest, and determine the course of study.

The BAR will measure your expertise in thefour key areas of the building industry: BuildingTechnology, Business and Finance, ProjectManagement, and Sales and Marketing.

PREP is a 3-hour 130 multiple- choice questionassessment that measures a candidate’sknowledge in five core areas: Marketing andSales - Business Administration - Design,Estimating and Job Costing - Contracts, Liabilityand Risk Management - Project Management.

Both assessments are available throughNAHB’s testing partner, LaserGrade. Forinformation on locations in your area visitwww.lasergrade.com/nhb.shtml. Theregistration fee is $195.

The ultimate symbol of the building orremodeling professional is the GraduateMaster Builder (GMR) or Graduate MasterRemodeler (GMR) designation.

Before beginning the GMB designationprocess, you must have the CGB, CGR, or CGAdesignation with five years of buildingexperience, or ten years of experience and havecompleted three CGB/CGR/CGA courses.

Qualifications for GMR include 15 yearsremodeling experience, completion of 5required courses, and having an active CGRfor 9 years or active CR (Certified Remodeler)from NARI (National Association RemodelingIndustry) for 10 years.

A NAHB Designation says a lot aboutyou. Professional designations offerexcellent opportunities to improve yourskills, advance your career, and berecognized for your commitment toprofessional growth. NAHB has the mosttargeted curriculum, accomplishedteachers and widely respected educationopportunities in the business. Startgetting a designation now so you’ll beahead of the competition in the future.

Certified Active Adult Specialist In Housing(CAASH) CAASH provides the essential knowledge,tools and skills–from conducting initialresearch to design considerations andfeatures to servicing the customer.

Certified Aging-In-Place Specialist (CAPS) The CAPS designation program teaches thetechnical, business management, andcustomer service skills essential tocompeting in the aging-in-place market.

Certified Graduate Associate (CGA) Learn about the home building businessfrom the best source possible: builders andremodelers with years of field experience.

Certified Graduate Remodeler (CGR) Certified Graduate Remodeler (CGR) is anexclusive professional designationdesigned to emphasize businessmanagement skills as the key to aprofessional remodeling operation.

Certified New Home Marketing Professional(CMP) CMP is the mid-level designation for IRMstudents who have completed the marketingintensive IRM courses I through IV.

Graduate Master Builder (GMB) Graduate Master Builder (GMB) courses aremore advanced with in-depth instructiongeared for experienced buildingprofessionals.

Housing Credit Certified Professional (HCCP)HCCP is a specialized designation fordevelopers, property managers, assetmanagers, and others working in theaffordable housing industry.

Member, Institute of Residential Marketing(MIRM) The MIRM designation is the top-level

achievement for professionals in new homemarketing.

Advanced RAM The Advanced RAM Program provides ahigher credential in the field of apartmentmanagement for the levels of assetmanagers, property supervisors, andmanagement company owners.

Certified Green Professional (CGP) The National Association of Home Builders’Certified Green Professional™ Designationteaches builders, remodelers and otherindustry professionals techniques forincorporating green building principles intohomes—without driving up the cost ofconstruction.

Certified Graduate Builder (CGB) CGB is an exclusive professionaldesignation designed to emphasizebusiness and project management skills.

Certified Leasing Professional (CLP) The CLP curriculum includes an overviewof multifamily leasing and sales skills.

Certified New Home Sales Professional (CSP)The CSP designation was designed forspecialists in new home sales to enhancetheir professional image, increase theirmarketability in the home building industry,and sell more homes!

Graduate Master Remodeler (GMR) Rolled out in 2008, the Graduate MasterRemodeler (GMR) program includesadvanced and updated courses gearedtoward experienced remodelingprofessionals.

Master Certified New Home SalesProfessional (Master CSP) This designation acknowledges thecontinued educational achievements ofgraduates of the CSP program.

Registered in Apartment Management (RAM)RAM is a comprehensive educational anddesignation program offered to propertymanagement professionals by NAHB.

Residential Construction Superintendent(RCS) The RCS designation series of courses isgeared toward the budding field ofsuperintendents and can benefit current sitepersonnel wishing to excel in this position.

WHAT SETS YOU APART?EDUCATION AND DESIGNATIONS HELP YOUR BUSINESS

Page 8: ulletinVolume 22 November/December 2008 Issue 6 B uilder B ulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit

BUILDER BULLETIN NOVEMBER/DECEMBER 2008 PAGE 8

Special reviews from

Strategic Marketing Group newsletters

Area Building

The following notes and discussion

comes from last month’s newsletters and new

information. It represents opportunities to

FCBA members...call me at 301-831-6536 or

e-mail at [email protected].

This column shows the residential

growth from January-September 2008.

Permits/Planning Little of substance included in a review

of the City/County Planning departments.

The county continues to advance ideas to

be implemented in the new master plan for

development to be completed next year. The

moratorium continues, but there is still growth

in existing subdivisions.Residential construction is picking up

again. The tables below show a total of 465 residential permit applications from January through September 2008.These permit applications are 465 units (see below).

January 2008. SFH-29/TH-19. February 2008 — CO-8/SFD-33/

TH-12. March 2008 — APT-23/SFD-28/

TH-15. April 2008 — SFD-15/TH-4. May 2008 — SFD-24/TH-16. June 2008. — SFD-21/TH-16. July 2008 — APT-4/CO-11/SFD-

21. August 2008 — APT-2/SFD-22/

MF-20/TH-20. September 2008 — SFD-46/MF-

34.

NVR is the largest builder over this

period of time, doubling the closest one

(Zavos in the New Market Revitalization).

Again the Villages of Urbana is the largest

growth PUD.

SAIC-Frederick Inc. awarded $5.2B federal

contractFrederick News-Post, October 1, 2008

SAIC-Frederick Inc. has been awarded a

contract that could be worth as much as $5.2

billion to provide services for the National

Cancer Institute.

It is the largest single research contract

ever awarded by the Department of Health

and Human Services.

Science Applications International Cor-

poration provides operations and technical

support to the federally funded Research and

Development Center for NCI in Frederick.

“Over the past several years, NCI-

Frederick has become more central to NCI’s

strategic plans. Even during these difficult

economic times, the amount of new work sent

to NCI-Frederick has actually increased,”

said Larry O. Arthur, president of SAIC-

Frederick.

“This contract win is a testimony to the

dedication, talent, and hard work of everyone

here at SAIC-Frederick. I’m confident that

our staff will continue to rise to the challenge

Frederick City/County Residential Units (Jan-Sep 2008)

Page 9: ulletinVolume 22 November/December 2008 Issue 6 B uilder B ulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit

BUILDER BULLETIN NOVEMBER/DECEMBER 2008 PAGE 9

Source. P+D News (June 2008)

as we rededicate ourselves to NCI’s mission

and it urgent new focus on developing new

treatments for cancer patients faster and

more effectively,” Arthur said.

Developer Continues plan for outlet center

The developer of the Villages of Urbana

has submitted a proposal to county planners

that could allow for the construction of a

120-store outlet center in southern Frederick

County.

Natelli, president of Natelli Communi-

ties, the developer of the Villages of Urbana,

said that the 212 acres of land along Interstate

270 near MD 80 has always been intended to

be home to a shopping center and about 1.2

million square feet of office buildings.

North Market RevitalizationThe “North Market Revitalization”

program includes 95 units on-site and 279

units off-site. The program will introduce

65 units of ownership on-site. The City has

donated adjacent property for development

of a park, and a 7,500 sf community building

fronting on North Market Street.

To de-concentrate poverty on site,

the program will develop mixed-income

properties nearby, downtown, and along the

Golden Mile.

Nearby, the program will construct a 23

unit facility for the elderly. Interfaith Hous-

ing is developing a 12 unit complex to assist

with relocation needs. Interfaith also plans to

add 23 units at Monocacy Woods on North

Motter Street for relocation.

In the Historic District south of Third

Street, the program will develop 30 units

along the already-revitalized Carroll Creek

Promenade, for a 145 unit mixed-income,

mixed-use development led by Main Street

Development. Also on the former Rogers

Supply site, 48 additional units are planned.

Along the Golden Mile, the program will

develop a 96 unit mixed-income apartment

complex.

North Market Revitalization

Page 10: ulletinVolume 22 November/December 2008 Issue 6 B uilder B ulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit

BUILDER BULLETIN NOVEMBER/DECEMBER 2008 PAGE 10

Spotlight on Members

WELCOME NEW MEMBERS!Chase Construction, Inc.

Buck Mills188129 Sandy Hook RdKnoxville, MD 21758Phone 301-514-4644FAX 301-834-6486

Framing Contractor/CraneRental

Dorman Builders, Inc.Charles Dorman

306 S Main St, Suite BMount Airy, MD 21771

Phone 301-831-5114FAX 301-831-5250

[email protected]

Remodeling

Monument Foam InsulatorsJames Mullen

2332 Monument RdMyersville, MD 21773Phone 240-784-0052FAX 301-293-3953

[email protected]

Insulation

Pro Tech ServicesTony Nagle

13987 Mater WayMt. Airy, MD 21771Phone 301-252-3384FAX 251-252-3388

[email protected] Contractor

Topline Countertops, Inc.Brucie Lindsey801 N East St

Frederick, MD 21701Phone 301-698-9989FAX 301-695-6544

brucie@toplinecountertops.comwww.toplinecountertops.comCountertop Manufacturer

FCBA SPIKE CLUB ROSTER

Robert Hilton 158.00Bev Shelton 124.00Larry Schaffert 121.00James Rudy 113.50Gary Smith 105.00Dolores Wilson 98.00Hugh Gordon 86.50Marvin Ausherman 83.00David C. Smith 74.00Mark Lancaster 68.50Gary Sanbower 66.00Kent Briddell 63.00Steve Oder 60.00Stuart Terl 58.50Karlys Kline 57.25Bo Carlisle 54.50Billy Shreve 53.00Howard Payne 48.00Mike Smith 44.00John Johnson 43.00John Clarke 40.75Mark Pelletier 40.75Bob Marsh 40.00Doug Maddox 39.50Scott Gove 39.00Lynn Shanton 37.75Howard Perlow 37.50Bob Dalrymple 37.00Mike Bodnar 33.50Stan Goldberg 33.50Ken Abrecht 31.50Don Owens 29.50David Lingg 28.50Jack Marshall 27.50Jim MacGillivray 27.50Doug Ogden 26.50Peter McHugh 24.50Ed Smariga 23.00Greg Seldon 22.50Steve Omenitsch 22.00Dick Johnson 20.00Gail Sexton 20.00Frank Dertzbaugh 19.50Andrew Wivell 15.00

These are the members who make theFCBA stronger by recruiting newmembers. Thank you!

Would you like to become a Spike Clubmember? For each new member yousign up, you earn one point. Contact theFCBA office for details.

Brian Flook,MIRM, CSP, of Power

Marketing & Advertisinghas been elected to theNAHB Institute of Residen-

tial Marketing (IRM)Board of Trustees.

Earn a $35 gas card!When you recruit your first ever newmember for the Frederick CountyBuilders Association, you will receivethe Bonded Builders Spirit of Member-ship Award and a $35 gas card. Asksomeone to join today!

SPONSORED BY:

Page 11: ulletinVolume 22 November/December 2008 Issue 6 B uilder B ulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit

BUILDER BULLETIN NOVEMBER/DECEMBER 2008 PAGE 11

Frederick County Builders AssociationMeetings & Events

FCBA= Frederick County Builders Association GMM = General Membership Meeting BoD = Board of DirectorsPRO = Professional Remodelors™ Organization SMC = Sales & Marketing Council LUC = Land Use Council

November 2008

Tue. 11/4 7:30 a.m. LUC General Membership – Breakfast, Dutch’s DaughterWed. 11/5 8:30 a.m. SMC Board of Directors – Drees HomesMon. 11/10 11:30 a.m. SMC General Membership – Lunch, Dutch’s DaughterTue. 11/11 9:00 a.m. FCBA Membership Committee – FCBA OfficeTue. 11/11 3:30 p.m. PRO Board of Directors – Airway’s Inn, Frederick AirportTue. 11/11 5:30 p.m. PRO General Membership – Dinner, Airway’s Inn, Frederick AirportThu. 11/13 8:00 a.m. LUC Public Works Committee – FCBA OfficeThu. 11/13 4:00 – 6:00 p.m. Building Connections, Quality Inn, Baughman’s LaneTue. 11/18 7:00 – 9:00 p.m. 5th Annual Economic Symposium – “America Under Economic Pressure” w/ Anirban

Basu – Frederick Community CollegeThu. 11/20 10:00 a.m. FCBA Board of Directors – Dutch’s DaughterThu. 11/20 11:30 a.m. FCBA General Membership –Lunch, Dutch’s DaughterFri. 11/21 9:00 a.m. FCBA Education Committee – FCBA OfficeTue. 11/25 8:00 a.m. LUC Board of Directors – FCBA OfficeThu. 11/27 THANKSGIVING HOLIDAY, FCBA Office Closed, 11/27- 11/28

December 2008

Tue. 12/2 11:30 a.m. INSTALLATION of OFFICERS, Lunch, Ceresville Mansion Wed. 12/3 7:00 – 8:30 p.m. FCBA Workshop “Appealing Your Property Tax Assessment”, C. Burr Artz Public LibraryTue. 12/9 9:00 a.m. FCBA Membership Committee – FCBA OfficeThu. 12/11 8:00 a.m. LUC Public Works Committee – FCBA OfficeThu. 12/18 11:00 a.m. Special FCBA Incoming/Outgoing Board Luncheon, Red Horse Steak HouseWed. 12/24 CHRISTMAS/NEW YEAR’S HOLIDAY – FCBA OFFICE CLOSED, 12/24 – 12/31

January 2009

Thu. 1/1 NEW YEAR’S HOLIDAY– FCBA OFFICE CLOSED, 1/1-1/2Tue. 1/6 7:30 a.m. LUC General Membership – Breakfast, Dutch’s DaughterWed. 1/7 8:30 a.m. SMC Board of Directors – Drees HomesThu. 1/8 8:00 a.m. LUC Public Works Committee – FCBA OfficeMon. 1/12 11:30 a.m. SMC General Membership – Lunch, Dutch’s DaughterTue. 1/13 9:00 a.m. FCBA Membership Committee – FCBA OfficeTue. 1/13 3:30 p.m. PRO Board of Directors – Location TBDTue. 1/13 5:30 p.m. PRO General Membership – Dinner, Location TBDThu. 1/15 10:00 a.m. FCBA Board of Directors – Dutch’s DaughterThu. 1/15 11:30 a.m. FCBA General Membership –Lunch, Dutch’s DaughterFri. 1/16 9:00 a.m. FCBA Education Committee – FCBA OfficeTue. 1/27 8:00 a.m. LUC Board of Directors – FCBA Office

All meetings and events that include meals REQUIRE advance reservations. Please contact FCBA at least 5 working days prior to the event at 301-663-3599 x-101, or via e-mail at [email protected] to make reservations. Payment for all meetings and events may be made in advance, at thedoor, or we will gladly invoice members. FCBA accepts Visa and MasterCard.

RESERVATIONS NOT CANCELLED 48 HOURS IN ADVANCE OF ANY EVENT WILL BE BILLED!

Page 12: ulletinVolume 22 November/December 2008 Issue 6 B uilder B ulletin Congress should consider providing further “sorely needed” economic stimulus to encourage homeownership and limit

Frederick County Builders Association186 Thomas Johnson Drive, Suite 204Frederick, Maryland 21702

Phone: 301.663.3599Fax: 301.663.1966Web Site: www.frederickbuilders.org

Bryan PatchanExecutive [email protected]

Donna KraftExecutive [email protected]

Clasina Van Velzen-StupMembership [email protected] ADDRESS SERVICE REQUESTED

FIRST CLASS MAIL

U.S. POSTAGE

–PAID–FREDERICK, MD

21702

PERMIT NO. 145

P R E M I E R C L U BHelping to Build A Strong Foundation

In Support of The Building Industry

Platinum Members

Drees Homes

Natelli Communities

Pleasants Development

Ausherman Development CompanyBB&T Frederick Underwriters

BSH Home Appliance CorporationBuckeye Development

Builders First Source - Atlantic GroupCharles P. Johnson & Associates

Dan Ryan BuildersDewberry

Elm Street DevelopmentHillis-Carnes Engineering Associates

Lancaster Craftsmen BuildersLoiederman Soltesz Associates

Gold Members

PNC

Rodgers Consulting

The Frederick News-Post

Mackintosh RealtorsMiles & StockbridgeNima Custom Homes, Inc.North Star FoundationsPulte HomesReico Kitchen & BathRichard M. Johnson & AssociatesThe Contractor YardThe Wormald CompaniesTri-State Home ServicesTrimco

Silver Members

Bronze Members

Forty West Builders

Specialized Engineering

Topper Construction

Tyler Donegan Real Estate