New NAHB Document Covers How to Detect

Covers How
to Detect
and Remediate
April 2011 •
Home Builders Association of West Florida • April 2011
2011 Home Builders
Association of West Florida
Board of Directors
Russ Parris
Frameworks, LLC
Luke Shows
1st Vice President
Shows Construction
Eric Witt
Kenneth E, Witt Carpentry
Judy Gund
Financial Officer
Saltmarsh, Cleaveland & Gund
Newman Rodgers
Newman Rodgers Construction
Steve Geci
2nd Vice President
Geci & Associates Engineers
Builder Members
Pam Caddell, Gulf+Atlantic Constructors
Miller Caldwell, III, CCG Design Builders
Jeff Godfrey, Paragon Custom Homes
Darrell Gooden, Gooden Homes
Robert Harris, Adams Homes
Doug Henry, Thomas Home Corporation
Doug Herrick, Coastal ICF Concrete Wall Systems
Shelby Johnson, Johnson Construction Co.
of Pensacola
Ron Mangum, Residential Renovation Company
Scott McCartney, 1st Choice Home Improvements
Bryan Moore, BRM Residential Homes
Jennifer Rigby, Gleaton & DeMaria Commercial
Kevin Russell, Russell Home Builders
Steve Sessions, Sessions Contractors Group
Keith Smith, Keith Smith Construction
Todd Stafford, Heaton Brothers Construction
Ron Tuttle, Bennat, Inc.
Chris Vail, Urban Infill Corporation
Thomas Westerheim, Westerheim Properties
Associate Members
Rod Hurston
3rd Vice President
Fisher-Brown Insurance
Tina Monie
Immediate 2nd Vice President
KJM Surveying
Billy Moore
Immediate Past President
Southern Home & Construction
The official magazine of the
Home Builders Association of West Florida
4400 Bayou Blvd., Suite 45, Pensacola, Florida 32503
(850) 476-0318
Stephen Moorhead
Legal Counsel
McDonald, Fleming, Moorhead
Angela Carter, Gulf Power Company
Bret Cornett, ProBuild
Rick Endsley, Builders Specialty Supply
Jill Grove, Energy Services of Pensacola
John Hattaway, Hattaway Home Design
Tom Hammond, Hammond Engineering
Ron Harper, GCS Building Solutions
Towana Henry, Surety Land Title
Blake Jochum, All Pro Sound
Pat Kozma, Jenkins Brick & Tile Company, LLC
William Merrill, Merrill, Parker, Shaw
Christopher Moorhead, Coastal Bank & Trust
Bernie Mostoller, The Mostoller Group
Ric Nickelsen, Whitney National Bank
David Redmond, PrimeLending
Gary Sluder, Gene’s Floor Covering
Doug Whitfield, Doug Whitfield Residential Designer
Jayer Williamson, Williamson Electrical Company
Brent Woody, Advanced Roofing and Waterproofing
John Carrell, Gulf Power Co., Remodelors Council Chair
Angie Cooper, Gulf Power Co., Auxiliary Council Chair
Jim Harris, Coastal Bank and Trust, Membership Chair
Natasha Reynolds, ESP, Green Building Council Chair
Newman Rodgers, Custom Builders Council Chair
Cornerstone is published for the Home Builders Association of West Florida by
Nicholson Publishing and distributed to its members. Reproduction in whole or part
is prohibited without written authorization. Articles in Cornerstone do not necessarily
reflect the views or policies of the HBA of West Florida. Articles are accepted from
various individuals in the industry to provide a forum for our readers.
Ex-Officio Members:
Keith Furrow, Pensacola Association of Realtors
April 2011 •
In This
Cover Story
New NAHB Document Covers How to Detect
and Remediate Problematic Drywall! .................................................. 6
President’s Message:
Home Ownership Can Bring Big Savings at Tax Time ............................. 5
What Has FHBA Done For Me Lately .................................................... 11
FHBA News: The Latest Information Across the State ................ 12 & 13
David Peaden II
Executive Director
[email protected]
NAHB News: “Builders Call on Congress to Improve
Small Builders’ Access to Credit ................................................... 14 & 15
Economics and Finance; “New FHFA Rule Takes Aim
Against Private Transfer Fee Covenants ................................................. 16
2011 HBA of West Florida Leadership .................................................... 3
Alecia Overman
Accounting Manager
[email protected]
HBA News: In Terms of Membership,
Relationships Makes Us Stronger” ........................................................... 7
HBA Council News: March Membership Meeting
Sponsored by Cort Furniture .................................................................... 8
HBA of West Florida: Calendar of Events ............................................... 8
HBA March General Membership Meeting Hosted at
Ferguson’s Showroom .............................................................................. 9
HBA Parade of Homes at Robinson’s Mill April 30th to May 8th ......... 10
Joint Building Official Meeting Held at HBA Office ............................. 10
Amy Lord
New Member Profile: Glenn Lubel .......................................................... 11
Membership/Marketing Director
[email protected]
American Dream Home Snapshot .......................................................... 15
Next Issue: May 2011
Edit: April 4, 2011
Space: April 15, 2011
Materials: April 22, 2011
Magazine Design & Layout by
warren wight creative services
HBA Membership News, Welcome New Members, Thanks for
Renewing, Time to Renew, & Don’t Lose Your Membership ............... 17
Spike Club Update .................................................................................. 18
Next Issue Deadlines ……………..............…..…...........……. 4, 13 & 18
Advertisers Index, Web, & Email Addresses ………….....…………… 18
Cornerstone, the monthly publication of the Home Builders Association of West Florida serving Escambia and Santa Rosa Counties, is published
monthly, twelve (12x) per year. Send address changes to HBA of West Florida, 4400 Bayou Boulevard, Suite 45, Pensacola, Florida 32503-1910.
Cornerstone, is published in the interests of all segments of the home building industry and is distributed to its members and others associated with
the HBA of West Florida. HBA of West Florida and Richard K. Nicholson Pub., Inc. does not accept responsibility for, or endorse any statement
or claims made by advertisers or authors of any articles. Every effort has been made to assure accuracy of information, but authenticity cannot be
guaranteed. No part of this publication may be reproduced without the written consent of Home Builders Association of West Florida, Copyright
©, 4400 Bayou Boulevard, Suite 45, Pensacola, Florida 32503-1910, 850.476.0318. Advertisers and advertorials in Cornerstone do not constitute
an offer for sale in states where prohibited by law.
Home Builders Association of West Florida • April 2011
Homeownership Can
Bring Big Savings at
Tax Time
As the April 18 federal
income tax filing deadline approaches, millions of Americans
are sitting down and sorting
through dozens of forms to determine
how much money they owe Uncle Sam – or,
how much of a refund they will get this year.
One of those forms, the Mortgage Interest
Statement Form 1098, can mean big savings
for home owners at tax time.
Form 1098, which home owners
receive from their lenders, shows the total
amount of home mortgage interest paid during the year. Home owners who itemize their
federal income tax deductions can deduct 100
percent of their mortgage interest payments
on a first or second home for up to $1 million
of mortgage debt. They can also deduct the
interest paid on up to $100,000 of home equity
For most home owners, this means
they can deduct ALL of the mortgage interest
they’ve paid on their home each year. The ability to deduct home mortgage and home equity
loan interest isn’t the only tax benefit for home
The three most important sources of
tax savings for home owners are:
• Deductions for mortgage interest
• Deductions for real estate taxes
• The capital gains exclusion for the sale of
a principal residence
Home owners are also able to deduct
the state and local real estate taxes they pay
each year on an owner-occupied home.
When it is time to sell a home, in many cases
home owners don’t have to pay capital gains
tax on the profit from the sale. Under present
law, married couples who have owned and
occupied their principal residence for at least
two of the past five years do not have to pay
any taxes on the first $500,000 in profits from
the sale of their home. Single filers earn up to
$250,000 tax free.
Another deduction home owners
may be able to take is for mortgage insurance
premiums. Generally, people who purchase a
home without putting 20 percent down have to
buy mortgage insurance, and those premiums
can also be deducted from taxable income.
Even home owners who don’t use
the home as their principal residence and rent
it out may be able enjoy some tax benefits, including interest and depreciation deductions.
Buying a home offers tax savings
that can add up to tens of thousands of dollars over several years. Home owners rely on
the mortgage interest deduction each year to
help offset the costs of homeownership and
prospective buyers take the deduction into
consideration when choosing homeownership
over renting.
But the mortgage interest deduction, which has been included in the tax code
for about 100 years, is in danger. A national
deficit commission has proposed reducing or
eliminating the deduction as part of a restructuring of the tax code.
Find out more about the threat to the
mortgage interest deduction, and read “The
Tax Benefits of Homeownership,” a study
from economists at the National Association of Home Builders that provides specific
examples of savings for a variety of income
levels and ownership situations, at www.
Russ Parris
“For most home
owners, this
means they can
deduct ALL of
the mortgage
interest they’ve
paid on their
home each year.”
For future upcoming events,
please call the HBA office at
850.476.0318 and view the calendar
on Page 10 of this Issue. Thank You!
April 2011 •
A new resource for builders and remodelers looking for
answers on the critical question
of how to detect and remediate
problematic drywall imported
from China in recent years was
unveiled by NAHB last week.
The document — “Imported Problematic Drywall: Identification Strategies and
Remediation Guidelines” — is now available
to association members and was released to the
public on March 16.
The publication represents the
culmination of more than a year of intensive
research, testing, analysis and evaluation by two firms — Marsh Risk
Consulting and Building Health
Sciences — under the auspices of
NAHB’s Chinese Drywall Task Force.
The task force was created
to identify a permanent solution to
problems with drywall emitting or
off-gassing corrosive compounds,
which can lead to the blackening of
copper electrical wiring and air conditioning evaporator coils and can cause
mechanical, electrical and electronic
“As we all know, the
downstream effects of these problems
includes widespread property damage, huge financial losses, hundreds
of lawsuits and legitimate concerns
about possible health effects from
living with these unpleasant airborne
compounds,” said NAHB First Vice
Chairman Barry Rutenberg, who
moderated the webinar.
The goal of the task force,
he said, was to:
• Help builders determine whether
problematic drywall is present
in a home
• Provide information on health
risks that residents may encounter
• Outline strategies for partial and
total remediation that are safe,
cost-effective and based on
sound science
Establish clearance procedures to confirm that problematic drywall has
been removed from the home
“Most importantly,” said Rutenberg,
“in a landscape now cluttered with untested
New NAHB Document Covers
How to Detect and Remediate
Problematic Drywall
products, devices and procedures purported
to resolve drywall problems, NAHB based
these guidelines on scientifically proven
technologies, materials, means and methods for
remediating drywall in single-family homes,
condominiums, apartments and townhomes.”
Rutenberg noted that the NAHB’s
guidance document does not represent the
only approach to remediating the problem, and
that builders might decide to follow different
guidelines that are less inclusive or that include
additional measures.
The guidance is also not intended to
set minimum or maximum requirements for
remediation, he said.
It is not intended to be used to deter-
mine the effectiveness of remediation efforts
that have already been completed, he added,
and it is not intended to be used in commercial
Among some of the noteworthy
Home Builders Association of West Florida • April 2011
recommendations contained in the document:
Replace all low-voltage, signal and data wiring;
all switches and receptacles; and all smoke, fire
and carbon monoxide alarms and life-safety
systems. This follows interim remediation
guidance issued by the Federal Interagency
Task Force on April 2, 2010, said Katherine
Ann Cahill, managing director of Global Product Risk Services for Marsh Risk Consulting.
To date, the government task force
has not made available the results of testing on
wiring and is probably still working on them,
she said.
“NAHB recommends builders pay
close attention to these test results when they
are announced and take them into account
when deciding what steps to take
with respect to high-voltage electrical wiring,” Cahill said.
“We expect we will hear
something within the next six
months,” she said, “but stay tuned.
If the home was built between 2001
and 2008 and it has been confirmed
that problematic drywall is present
throughout the entire home, total
remediation is the only viable option even if the home contains some
non-problematic drywall,” said
Selective remediation is
an option if the problem drywall
is found in a limited portion of the
home that can be isolated, she said.
Conduct clearance testing after the
drywall has been removed and the
house has been cleaned and aired
out but before it is built back, said
Dr. Barbara Manis, chief medical
officer of Building Health Sciences.
This will determine
whether the remediation has been
adequate, Manis said, or if further
cleaning is needed.
“Clearance testing is
extremely important for the peace
of mind of both the remediation
contractor and the home owner,”
said NAHB Chinese Drywall Task
Force Chair Ray Kothe.
Kothe also thanked the
task force members, NAHB staff
members and the consultants for their efforts.
To access the document, go to www.
For more information, e-mail David Jaffe at
NAHB, or call him at 800-368-5242 x8317.
In Terms of
Make Us
Why did you join the
Home Builders Association of
West Florida (HBA)? Your answer will vary depending on your
business and the problems that
keep you up at night. But I would wager that none of you joined to have a relationship with the organization, but instead to have
relationships with other members. These connections (actual or potential) to others are the reason we are here. Yes,
the lobbying, education and information are
important too, but the connections and relationships we make with our fellow members are
what make us feel more connected to the HBA.
Our relationships make us stronger.
We learn from each other. We pass on news to
each other, or even better, referrals and leads.
We expose each other to different perspectives
and ideas, so we make wise decisions, and not
get stuck in our own bubble. We get advice
from each other, and support too. We help each
other get involved in the association, showing
how easily it’s done, and how rewarding. We
introduce each other to new people. We have a
heck of a good time together too.
Many of us know a fellow member
who got new business or a job from another
member. This only happens when the relationships are already there. Relationships are one
of the most powerful benefits of membership
but it’s a benefit that not all receive. First you
have to get involved, even just an hour here and
Your relationships are a valuable
resource for our association right now. May is
membership month and it’s real easy for you to
get involved. We are on a hunt for new members in May so we can provide more potential
relationships and all their benefits to you. Look
through your e-mail contacts, your accounts
receivable and payable, your LinkedIn connections, your Facebook friends, your rolodex or
wherever you keep your names and numbers. Who should be part of our community? Who
can benefit from connecting with others here?
Who can benefit from our advocacy? Our
programs? Our information? Frankly, they need
By Jim Harris
“Your relationships
are a valuable
resource for our
association right
now. May is
month and it’s
real easy for you
to get involved.”
to support the industry that is supporting them.
It’s that simple.
Please look at your network and
invite someone to join our association in May.
Or, in the meantime, feel free to call me or
HBA Membership/Marketing Director Amy
Lord at 850-476-0318 for some help. Our
connections to and relationships with other
members is the real strength of this association.
The more we have, the more we can do. Please
join me in making that happen.
April 2011 •
What an informative and useful program on Home Staging
that Sherry Toler and Todd Shell, of Cort Furniture, gave to the Auxiliary Council at its March General Membership. Toler and Shell explained how staging a
home with the right furnishings can help it sell faster and at a higher price. Pictured left to right:
Linda Gregg of Keller Williams; Debbie Sanspree of Keller Williams; Sherry Toler of Cort Furniture; Lydia Davis of Gooden Homes; Brenda Caulkins, of Surety Land Title; Michelle Bean of
HomeTeam Pest Defense; Janice Terrell of Energy Services of Pensacola; Auxiliary Council Chair
Angie Cooper of Gulf Power; and Linda Salter of Surety Land Title.
Happy attendees with their door prizes!
Mark Your
Auxiliary Council
Meet on the 2nd Tuesday of each month.
Custom Builders Council
Meet Quarterly starting in January.
Green Building Council
Meet on the last Wednesday of each month.
Governmental Affairs
Meet on the 1st Tuesday of each month.
Membership Committee
Meet on the 2nd Thursday of each month.
Remodelor’s Council
Meet on the 1st Thursday of each month.
Board of Directors
Meet on the 3rd Tuesday of each month.
April April April
7 13 - 14 19 29 Spring Golf Classic
Sponsorships Available!!
FHBA Legislative Action visit in Tallahassee
BOD Meeting
GMM/POH Kick Off @ Central Site – Robinson’s Mill 5:30 – 7:30 p.m.
April 30th - May 8th Parade of Homes - Sponsorships Available!
Interested in sponsoring a
General Membership Meeting?
Contact Amy Lord at 850-476-0318 for more information!
For further event details, please visit our
Please note that dates and locations are subject to change.
May 2011
Home Builders Association of West Florida • April 2011
To advertise, call
Richard Nicholson
[email protected]
March GMM
Ferguson’s stunning showroom was the setting for the HBA
March General Membership Meeting, which took place on Tuesday,
March 15. As always, the Ferguson team went out of their way decorating the showroom in
a St. Patrick’s Day theme and providing members with great food, fun games and an overall great
evening. The Ferguson Team hid 30 numbered golden coins throughout the showroom. Each
time a coin was found, a prize was won. Prizes ranged from a six pack of Guinness, box of lucky
charms to beautiful light fixtures. There was also a prize given away to the HBA Member wearing the most green. HBA staff sold split the pot raffle tickets and the lucky winner received $50.
Ferguson’s luck of the Irish party provided members the opportunity to see Ferguson’s beautiful
showroom, network with other HBA members and have an excellent time.
The Ferguson Team. Thank you for a great evening!!
Members Ron Tuttle and Linda Bennett enjoying the festivities and
their prizes
Wearing of the most green winner LaRonda
John Hattaway with Hattaway Home Design was the lucky
split the pot winner
April 2011 •
Joint Building
Official Meeting
Over 40 contractors attended
a meeting held February 23 at
the HBA office where Escambia
County Building Official, Dale
Baker , and Santa Rosa County
Building Official, Tim Tolbert ,
discussed standards in regards to
the 2007 Florida Building Code
Residential requirements for return air duct systems.
Parade of Homes, An Exciting Time
for the Housing Industry
April 30th to
May 8th
There is no better way to market a home than to enter into 2011 Parade of Homes™,
set for April 30 – May 8. The people of Northwest Florida look forward to the Parade of
Homes™ every year. The Call for Entries is being mailed today to HBA Builder Members.
You can download the 2011 Parade of Homes™ entry form and advertising information at:
The HBA is also pleased to partner with the Pensacola News Journal’s Media
Solutions who will be producing the ever-popular Parade of Homes™ publication complete
with maps, renderings, and floor plans. We encourage you to support the PNJ’s advertising
efforts because it does a great job of promoting our Parade of Homes™. Your advertising
enhances the Parade of Homes™ media coverage, plus your business will gain from the
exposure. Call the PNJ Media Solutions Department today at 435-8554.
The American Dream Home is currently under construction at the beautiful community and Central Site of Robinson's Mill, located on East Kingsfield Road in Pensacola.
Robinson's Mill is a 38-acre, 61 lot subdivision that is distinctively noticeable by its fullscale mill house and waterwheel. Kevin Ward of K.W. Homes is building the two-story,
Southern Living plan, Dream Home.
Whether you are a potential home buyer or home builder, the 2011 Parade of
Homes™ has something for everyone.
Home Builders Association of West Florida • April 2011
New Member
Glenn Lubel
Coldwell Banker United Realtors
A real estate broker since 1985, Pensacola Beach resident Glenn Lubel recently
joined the Home Builders Association of West Florida. Lubel, who was born and raised in
Mobile, Alabama, is licensed in Florida, Albama, and Colorado.
Lubel is a LEED Green Associate and National Association of Realtors GREEN
designee. Lubel is no stranger to Home Building Associations.
In fact, Lubel was very active in the Boulder, Colorado Building Association
(CBA) and was a founding member of their Green Builders Program and built two spec
homes to CBA Green standards. As a very pet friendly person, Lubel always donates five
percent of his real estate sales based commissions to qualifying animal welfare and rescue
organizations in the Florida and the Alabama Gulf Coast Region. The HBA welcomes
Lubel as one of the newest members of the HBA.
C e l l 8 5 0 - 5 7 2 - 5 5 7 5 | O f fi c e 8 5 0 - 9 3 2 - 5 3 0 0 | g l e n n @ g l e n n l u b e l . c o m
April 2011 •
‘$1,000 Club’ Off to a
$75,000 Start
Members and friends of the Florida
Home Builders Association (FHBA) are lining up to participate in the “$1,000 Club,” a
capital campaign chaired by Polk County BA
Past President and long-time FHBA member
Carlton Hodges of Lakeland. “The response in
the first two weeks of the campaign has been
encouraging and $75,000 has been committed
to date,” said Hodges. The program accepts
participation from FHBA members and local
HBAs in increments of $1,000 and pays 3
percent interest compounded annually for a
five-year period. Participants receive promissory notes from FHBA. “Past leaders, current
leaders, senior staff, HBAs, and people with a
passion for FHBA are using the $1,000 Club as
a way to show their support for FHBA and the
vital role it plays in our industry,” said Hodges,
a $5,000-level participant. Manatee-Sarasota
was the first local HBA to participate. “This
is a great way to show our support of our state
association,” said President Mike Kramer. The
program runs through April 8, 2011 and complete information is available at
under FHBA Community then “$1,000 Club.”
Questions about the program can be directed
to FHBA CEO/Executive Vice President Paul
Thompson at 800-261-9447, or [email protected]
approximately 55 percent of the changes
submitted for consideration. Of that number
(452), there were 112 changes approved that
removed previously approved “Florida Specific
Amendments.” The most significant changes
were those dealing with wind design in accordance with the new American Society of Civil
Engineers (ASCE) pamphlet 7. The new standard creates a new wind map for the state and
generally reduces design pressure across the
entire state from 0 to 31 percent. For Glenn’s
detailed report and analysis, including a chart
and map and specific changes related to mitigation, energy, green building, go to www.fhba.
com and click on Features then New Code.
Mortgage Finance
Options Outlined
Building Code Getting
452 Changes
The Florida Building Commission
(FBC) has reviewed a total of 827 proposed
changes to the 2009 family of I-Codes in the
development of the 2010 Florida Building
Code. While that may sound like a large number, it is small compared to the almost 1,400
changes approved by the International Code
Council (ICC), according to the Florida Home
Builders Association’s Director of Technical Services Jack Glenn. The FBC approved
Home Builders Association of West Florida • April 2011
The Obama Administration recently
released its report to Congress on reforming
the nation’s housing finance system and offered
three possible courses: 1) a privatized system
with a limited government insurance role, 2)
a privatized system with limited government
assistance and a guaranteed mechanism to
kick in during times of crisis, 3) a privatized
system with government assistance for low-tomoderate income borrowers and catastrophic
reinsurance behind significant private capital. A National Association of Home Builders
assessment indicated that the Administration’s
plan would lead to less mortgage credit availability and a higher cost in both the short- and
long-term. The Administration clearly plans
to wind down the roles of secondary mortgage
market entities Fannie Mae and Freddie Mac
and its path to reform will have an immediate
impact if it allows the temporary higher loan
limits to expire as scheduled on October 2,
2011, according to NAHB.
SEBC to Offer
Designation Courses
Southeast Building Conference
(SEBC) Chairman Tony Martin of Orlando has
announced that the 2011 SEBC will offer some
of the industry’s most popular professional
designation courses. The SEBC, set for July
20-23 at the Orange County Convention Center
in Orlando, will present the two-day Green
Building for Building Professionals (Advanced
Course); the one-day Business Management for
Building Professionals course; the two courses
leading to the Certified-Aging-in-Place (CAPS)
designation: Marketing and Communications
Strategies for Aging in Place (CAPS I) and
Design/Build Solutions for Aging/Accessibility (CAPS II); and all four courses leading to
the Member, Institute of Residential Marketing
(MIRM) designation. Dates, times, fees, and
instructors will be announced shortly and available at
May 2011
For advertising information,
contact Richard Nicholson
[email protected]
Get Involved
HBA Councils &
Auxiliary Council
Meet on the 1st Tuesday of each month.
Custom Builders Council
Meet Quarterly starting in January.
Green Building Council
Meet on the last Wednesday of each month.
Governmental Affairs
Meet on the 2nd Tuesday of each month.
Membership Committee
Meet on the 2nd Thursday of each month.
Remodelor’s Council
Meet on the 1st Thursday of each month.
Board of Directors
Meet on the 3rd Tuesday of each month.
April 2011 •
Builders Call on Congress
to Improve Small Builders’
Access to Credit
Members of NAHB’s Housing
Finance Committee and staff are also in the
midst of pursuing a range of other initiatives,
including new funding programs and regulatory relief. Although some of these efforts are
still in their beginning stages, the association is
vigorously pursuing such initiatives as:
• A national debt/equity fund
• A state housing finance agency (HFA)
taxable bond construction lending program
• AD&C loan insurance
• A production financing/rent-to-own
With the housing production credit crisis taking a severe
toll on the nation's small home
building firms and threatening
future job growth and the fragile economic recovery, NAHB in
early March called on Congress
to take tangible steps to improve
access to credit for small builders.
"With the spigot for housing production loans cut off, and the threat that the
uncertainty from new rule-making under the
Dodd-Frank financial services law will further
impact the ability of small community lenders
to service the credit needs of our industry, it
is clear that congressional action is needed to
help open the flow of credit to home builders,"
NAHB Chairman Bob Nielsen told the House
Financial Services Subcommittee on Financial
Institutions and Consumer Credit.
"Without such action," Nielsen
added, "there can be no housing recovery,
which has major implications for our nation's
ability to recover from the current economic
Builders are coming under increased
pressure from lenders — including calls for ad-
ditional equity, denials of loan extensions and
demands for immediate repayment on acquisition, development and construction (AD&C)
loans — even when their loans are current, he
And lenders are often citing regulatory requirements or pressure from bank
examiners to reduce AD&C loan exposure as
the rationale for their actions.
"While federal bank regulators maintain that they are not encouraging institutions
to stop making loans or to indiscriminately
liquidate outstanding loans, reports from my
fellow members and their lenders across the
nation suggest that bank examiners in the field
are adopting a much more aggressive posture,"
said Nielsen.
To address this situation, NAHB
has presented banking regulators with specific
instances of credit restrictions, provided data
showing no difference in credit access across
housing markets — many of which are returning to normal conditions — and requested
specific changes to current regulatory guidance.
To date, these efforts have yielded
no concrete results, which is why NAHB will
soon be offering a formal legislative blueprint
to Congress that focuses on fixing specific
instances of regulatory excess while helping
to ensure adequate credit availability to home
Home Builders Association of West Florida • April 2011
Reforms to the appraisals process, including: 1) improvements in the quality of
appraisals in distressed markets 2) establishment of appraiser qualification
requirements for valuations of new construction
3) improvements in state oversight of
appraisers and appraisal requirements
Nielsen stressed that problems in the
housing sector resulting from the economic
impact of the credit crunch have placed an
enormous toll on the nation's economy. The
sharp decline in home building from the 2005
peak — a drop of one million units — has
translated into the loss of 1.4 million construction jobs and $70 billion in wages. Factoring in
industries that provide materials and services to
home builders, the total impact of the housing slump has been the loss of more than three
million jobs and $145 billion in wages in all
housing-related industries.
"NAHB estimates that over the
next decade there will be a need for at least
1.7 million additional homes per year," said
Nielsen. "This translates into five million jobs
and significant economic activity,” he said.
“Without increased AD&C lending, this future
demand will not be met, job loss will occur and
job creation will suffer."
Nielsen delivered a similar message
on the urgent need to open up the lines of credit
for new housing production in a March 7 address to the board of directors of the National
Association of Counties during its annual
legislative conference in Washington, D.C.
Qualified Residential Mortgage
On a related topic, NAHB urged
the federal regulators to take an expansive
approach in defining a Qualified Residential
Mortgage (QRM) in the forthcoming credit
risk retention rules required by the Dodd-Frank
The law requires lenders to have
"skin in the game" by holding a small percentage of each loan that they sell into the secondary market. What is
still to be determined
is how the risk
retention rules will
be established and
how regulators will
define the terms of
certain high-quality,
lower-risk mortgages
that will be exempted
from the risk retention requirements.
Nielsen warned that
if agencies establish
a QRM standard that
is significantly tighter
than current credit
standards — which
are already tougher
than they have been
in decades — millions of creditworthy
borrowers would be
deemed, by regulatory action, to be
higher-risk borrowers.
"As a result,
they would be eligible
only for mortgages
with higher interest
rates and fees, which
would prohibit many
potential first-time home buyers from purchasing a home, especially if the definition includes
an excessively high minimum down payment
requirement," said Nielsen.
Further, an overly restrictive QRM
definition would also drive numerous current
lenders from the
residential mortgage market — including thousands
of community
banks — and enable only a few of
the largest lenders
to originate and
securitize loans.
"This sharp dilution of mortgage
market competition would have
a further adverse
impact on mortgage credit cost
and availability,"
said Nielsen.
"We therefore
urge the agencies to define the
QRM's parameters in a way
that facilitates a
housing recovery
and ensures access
to conventional
mortgage credit
for all buyers and
refinancers, while
preserving high
quality, empirical-
“NAHB has presented
banking regulators with
specific instances of
credit restrictions,
provided data showing
no difference in
credit access across
housing markets —
many of which are
returning to normal
conditions — and
requested specific
changes to current
regulatory guidance.”
ly sound underwriting and product standards,"
he said.
For more information, e-mail Scott
Meyer at NAHB, or call him at 800-368-5242
Dream Home
Construction on the 2011
American Dream Home is moving
briskly along. The Dream Home, located
in Robinson's Mill on East Kingsfield
Road in Pensacola, is being construction
by Kevin Ward of KW Homes, and is a
Southern Living homes plan. Robinson's
Mill is the Central Site for the Parade of
Homes, set for April 30 - May 8. Robinson's Mill is a 38-acre, 61 lot subdivision
that is distinctively noticeable by its fullscale mill house and active waterwheel.
April 2011 •
and Finance
New FHFA Rule Takes
Aim Against Private
Transfer Fee Covenants
In response to the more
than 4,200 comments it received
to proposed guidance on limiting
Fannie Mae, Freddie Mac and
the Federal Home Loan Banks —
“the regulated entities” — from
dealing in mortgages on properties encumbered
by private transfer fee covenants
and related
securities, the
Federal Housing
Finance Agency
(FHFA) has
decided instead
to propose a
rule that addresses the same
issue but with
some significant
“NAHB is in
the process of
comments on the
rule and is
seeking input from
At its meeting
last fall in New York,
the NAHB Board of
Directors passed a resolution opposing the
guidance, which formed the basis for comments that were sent to the FHFA on Oct. 15.
In those comments, NAHB urged
the agency not to prohibit the regulated entities
from dealing in mortgages on properties that
already had established private transfer fee
covenants or where the fee is clearly disclosed
and is used to benefit:
• A property owner’s association that
manages the subdivision
• A nonprofit that meets Internal Revenue
Code requirements
• A government entity
The NAHB resolution pointed out
that private transfer fees established voluntarily
(and not imposed by the government) “have
proven to be a successful and flexible funding
source for independently financing community
priorities” — such as affordable housing, open
Home Builders Association of West Florida • April 2011
space, wildlife conservation efforts and other
community amenities and benefits.
The resolution also noted that
revenues from these fees have historically
been directed to home owners associations or
to charities and other nonprofit organizations
organized in accordance with 501(c) of the
Internal Revenue Code.
While still imposing a prohibition
against mortgages with private transfer fees,
the new proposed rule makes an exception
for “private transfer fees paid to home owner
associations, condominiums, cooperatives and
certain tax-exempt organizations that use the
private transfer fees to provide a direct benefit
to the owners of the encumbered real property.”
Also, for the most part, the proposed
rule would only apply to private transfer fee
covenants created on or after its publication
date in the Federal Register on Feb. 8. Comments on the proposed rule are due on April 11.
While the FHFA invites comments on
all aspects of the rule, it is specifically looking
for comments on how it has defined a number
of terms that are used to establish the scope of
the rule’s restrictions — such as “adjacent or
contiguous property,” “covered association,”
“direct benefit” and “private transfer fee covenant.”
The agency is also requesting specific
information on how third-party private transfer
fees relate to developer costs and how they
result in lower sales prices on encumbered
NAHB is in the process of submitting
comments on the rule and is seeking input from
association members.
To provide comments, or for more
information, e-mail Kimberly Moore at NAHB,
or call her at 800-368-5242 x8529; or contact
Debra Bassert, x8443.
Associate Members
Glenn H. Lubel, LLC
Glen Lubel
29 Sugar Bowl Lane
Pensacola Beach, FL 32561
T: (850) 932-5300
F: (850) 932-0787
[email protected]
Mortgage America Inc.
Bruce Carpenter III
200 E Government Street, Suite 210
Pensacola, FL 32502
T: (850) 332-5221
F: (850) 332-5622
[email protected]
Rels Title
Lindy Hurd
65 Bay Bridge Drive
Gulf Breeze, FL 32561
T: (850) 934-8300
F: (850) 934-8399
[email protected]
Builder & Developer Members
Aaron James Custom Homes, Inc.
Building Skipper, LLC
Florida 1st Home Construction
Holiday Builders
Paragon Custom Homes / Celebrity Homes
Southern Building Specialties, Inc
Timberland Contractors, Inc.
Walther Custom Homes, LLC
Associate Members
Anchor Pest Control, Inc.
Builders Specialties Supply, Inc.
Coastal Insulation Company
Cornerstone Mortgage Solutions, LLC
Energy Services of Pensacola
Ferguson Enterprises, Inc.
Fisher-Brown Inc.
FoamSeal Insulation Systems, Inc.
Gene’s Floor Covering
Milton Truss Company
PrimeLending, A Plains Capital Company
ProSource of Pensacola
If you do business
with or know anyone
in the “Don’t lose
your Membership!”
section, please give
them a call and
reinforce the value
of membership
as well as the
of Members Doing
Business with
(You still have time to renew)
Bruce A. Johnson Constructors, Inc.
Lunsford Air Conditioning & Heating, Inc.
Moore Heating & Air, Inc.
Pav’r Construction, Inc.
Advanced Disposal Services, Inc.
Bob Price Jr. Builder Inc.
Preferred Materials, Inc.
Bagdad Home Builders, Inc.
Bradco Supply, Inc.
Built2Code Construction, LLC
Home Run Holdings Corp.
Joe Baker Construction, Inc.
May 2011 Renewals (Renewal
invoice to be mailed 3rd week of April.)
Advanced Signs & Graphics, Inc.
All Pro Sound
Alpha Closets & Company, Inc.
Authentic Construction, Inc.
Bill Walther Roofing, Inc.
BRM Residential Homes
Clark Partington Hart Larry Bond &
Coast to Coast Constructors, Inc.
Containers, Inc.
Coogle Homes, LLC
Cotton Real Estate, Inc.
Duffy Snyder, LLC
Force 5 Walls, Inc.
G. Daniel Green & Associates
Gilmore Services
Gleaton & DeMaria Commercial Dev.
Gulf Coast Pool & Spa, Inc.
Gulf Coast Title Partners, LLC
Hamby’s Kitchen Center
Hammond Engineering, Inc.
Heritage Homes of Northwest Florida
Irby Engineering & Construction, Inc.
Jenkins Brick & Tile Company, LLC
Kay’s Prestige Kitchen & Bath
Kenneth E. Witt Carpentry, Inc.
L. A. Builders
LaSage Homes, Inc.
Lee Mechanical & Plumbing
Litvak Beasley & Wilson, LLP
Live Oak Landscape, Inc.
Luker Builders, Inc.
Merrill Parker Shaw, Inc.
MJW General Contracting, LLC
Pensacola Ready Mix
Sandy Sansing Dealerships
SBD of FL, Inc. Cabinets - Millwork
Todays Homes of Northwest FL
Town & Country Industries
W.R. Taylor & Co.
Westervelt Ecological Services
Williams-Brown, Inc.
April 2011 •
In construction, a spike is a steel object that is essential to making a building strong. As in construction,
the HBA of West Florida sees a Spike as someone
that works to keep our association strong. Spikes
work on the recruitment and retention of members
in addition to keeping members active with the
association. Anyone is eligible for Spike status.
On Spike credit is awarded for each new member
recruited and an additional credit is awarded for that
new member’s renewal on or before their anniversary
date. If you help to retain a member, you are eligible
to receive a half point for each member.
Spike Club Levels
Spike Candidate
Blue Spike
Life Spike
Green Spike
Red Spike
Royal Spike
Super Spike
Statesman Spike
Grand Spike
All-Time Big Spike1500+
1-5 credits
Spike Club Members and their credits
as of 03/01/2011
Super Spike
Harold Logan
Rod Hurston
Jack McCombs
250 Credits
Royal Spike
EB Williams
Mike Blanton
Ron Anderson
Edwin Henry
Rick Sprague
Carlton Bowers
Bob Boccanfuso
Betty Evans
150 Credits
Red Spike
Thomas Kennedy
Collier Merrill
Alan Brock
Lee Magaha
Don Suarez
Dan Gilmore
Oliver Gore
Greg Brock
100 Credits
Green Spike
Ricky Wiggins
William “Billy” Moore
Doug Sprague
John Harold
Ron Tuttle
David Holcomb
Kenneth Ellzey, Sr.
Wayne Underwood
Millie Carpenter
Chris Pate
Kevin L. Ward
Paul Stanley
50 Credits
Life Spike
Randy Lemon
West Calhoun
Tina Monie
Bob Price, Jr.
Laura Tkach
Neil Jernigan
Wilma Shortall
Don Brantley
Raymond Noel
Rick Faciane
Eddie Zarahn
Darrell Gooden
Garrett Walton
Thomas Westerheim
25 Credits
Blue Spike Richard Baker
James Dillaha
Ed Wonders
John Hattaway
Newman Rodgers IV
Keith Swilley
Doug Whitfield
Russ Parris
Todd Stafford
Jim Harris
Steve Moorehead
Michelle Bean
Dean Williams
Towana (Rudd) Henry
Paris Carlton
Doug Herrick
Beth Shoemaker Bernie Mostoller
Beth Shoemaker
6 Credits
If you would like to join the Spike Club
or Desire Additional Information,
please contact Alecia Overman at
(850) 476-0318.
Advertiser’s Index
Alpha Closets and Company 850.221.8771
[email protected]
Anchor Pest Control 850.435.7696
[email protected]
Bonded Builders Home Warranty 7
800.749.0381, ext.800
Energy Services of Pensacola 850.436.5050
Gulf Power
Raised Floor Living
[email protected]
warren wight creative services
[email protected]
MAY 2011
For advertising information, contact
Richard Nicholson
561.843.5857 / [email protected]
Home Builders Association of West Florida • April 2011
Back Cover
April 2011 •
Home Builders Association of West Florida • April 2011