Wednesday Workbench

Wednesday Workbench, January 6th, 2010

2010-01-06T16:34:00.000-08:00

Dear Members:

Welcome to another week of our Wednesday Workbench keeping you up to date week by week of our local, state and national headlines, happenings and events.

Please take a minute to scroll down and you'll find updates on our upcoming Home Show, Educational Programs, Industry news and updates, more discount programs aimed at saving you dollars, NAHB reporting on the housing tax credit.

Remember you can contact me at anytime for any questions for information your looking for.We are always here for you,Carmi

2010-01-06T16:10:00.000-08:00

HOME BUILDERS ASSOC. OF CENTRAL MICHIGAN
PRESENTS

COCKTAILS & CONNECTIONS
JANUARY DINNER MEETING
FEATURING A
NETWORKING/TABLE TOP NIGHT

LOOKING FOR LEADS?
LET’S START THE NEW YEAR OFF RIGHT BY INCREASING
YOUR REVENUE AND DOING BUSINESS WITH ANOTHER MEMBER

TUESDAY, JANUARY 12TH, 2010
6PM – 8PM @ COCO JOE’S RESTAURANT, MT. PLEASANT
6:00pm – 8:00pm Social Hour/Member to Member Expo/ Prize Giveaways

One of our more popular style membership meetings featuring a casual, mixer format with lots of networking, cocktails and a buffet of hearty hors d’ oeuvres. It is a great opportunity for you to showcase your company, products or services or just socialize with other members while you make your new connections OR refresh old ones
EVERY CONNECTION COUNTS
Limited quantities on table top opportunities, respond Soon

MEMBER TO MEMBER EXPO

Download a Sign Up Form at http://hbacm.com/

or email me the following:

COCKTAILS & CONNECTIONS ATTENDANCE RESERVATION FORM
Name: ____________________________________ ____ I will donate a Prize
No# Attending _________Company Name: ______________________________
One Dinner & Cocktails No Charge (Included in Membership)
Dinner Includes: Hearty hors d’oeuvres Buffet & 2 Drink Tickets
_____Each Additional Dinner @ $14.00 = $ __________
( ) Check Enclosed ( ) VISA ( ) Master Card ( ) American Express
Credit Card# _______________________________Exp _______ V-Code _____
Phone Number: ______________________Return Via FAX 989-775-7748
Mail To: HBACM, 2026 Independence Drive., Mt. Pleasant MI 48858
Email To: carmi@hbacm.com

EDUCATION EDUCATION EDUCATION

2010-01-06T15:50:00.000-08:00

Members: We are determined to assist you in staying on top of your game. It's all about education. Be sure to sign up for the following Seminars and educational opportunities: JANUARY 25TH & 26TH EPA’S 8 HOUR LEAD CERTIFIED RENOVATOR CLASS

The EPA has recently enacted new regulations affecting contractors performing renovation work in residential dwellings built before 1978. Beginning April 22nd, any renovation work including painting, plumbers, electricians, HVAC, siding which disturbs surfaces must be performed by persons trained and certified in lead-safe work practices. Our next class is set for Monday January 25th & 26th here at the HBA office. Contact the office at 989-775-7747 and get registered for this mandatory certification course or download a registration application from our website at http://hbacm.com/

JANUARY 27TH THE GOOD, THE

BAD & THE UGLY ON SPRINKLERS

The battle to keep residential sprinkler requirements out of the next edition of the codes is back on. Mandated sprinklers in homes could still become a reality. Join us for a FREE informational sprinkler education session with CMU Instructor Bruce Frost on Wednesday January 27th at the New City Hall in
Mt.Pleasant. Mr. Frost will cover piping, location of sprinkler heads, types of heads, pressures required along with NFPA 13-D and the 13-R regulations. It’s your chance to draw your own conclusion on sprinklers. Call the HBA office at 989-775-7747 and get signed up or download a registration application from our website at http://www.hbacm.com/

FEBRUARY 18TH SUSTAINABLE SOLUTIONS FOR OUR CONTRACTING INDUSTRY Representatives from the Building Science Academy will present ways to position your company to take advantage of the many opportunities found in the Energy/Upgrade Weatherization Industry. Some of the topics that will be covered include: How to Profit in the Construction Retrofit Market, Where are the Opportunities in the Retrofit Market and Strategies to Enter the Market. This Seminar is FREE to members only. Sign up by calling the HBA office at 989-775-7747 or go to our website at http://www.hbacm.com/.

FEBRUARY 24TH SAFETY SEMINAR ON THE NEW MIOSHA REGULATIONS

Falls and poor safety techniques are the leading cause of fatalities in the construction industry today. MIOSHA has new mandatory regulations in place that you should know. Join Construction Management Instructor Bruce Frost as he reviews the new MIOSHA Regulations and a safety program you can utilize on your jobsite. Call the HBA office at 989-775-7747 and get signed up or download a registration form from our website at http://www.hbacm.com/

Please take advantage of these many educational and networking opportunities that will help to keep you on top of your game through 2010.

Home Buyer Tax Credit an Important Stimulus

2010-01-06T15:46:00.000-08:00

· Regarding the enhanced home buyer tax credit, we believe this new law will help boost home buyer demand until the job market recovers and increases the confidence of home buyers.

· Not only is the $8,000 first-time home buyer tax credit being extended into the first part of next year, but eligibility for the credit has been significantly expanded.

· It’s not just a tax credit for first-time buyers anymore. Move-up buyers, move-down buyers, and others who have previously owned a home will be able to claim a $6,500 credit as well.

· Not only that, but income limits for all buyers have been increased to $125,000 for singles and $225,000 for couples.

· These changes – which we fought so hard to win – should substantially increase the tax credit’s ability to stimulate buyer demand across a much broader swath of the housing industry.

· In fact, nearly 70 percent of all potential home buyers will now qualify for some form of the tax credit. And that should translate to more buying activity across the board.

· NAHB estimates that the extended and expanded home buyer tax credit will create more than 200,000 jobs and generate 180,000 additional home sales this year.

· Though we were successful in extending the tax credit for sales contracts entered into by April 30, 2010 and closed by June 30, we are working within a relatively short window of time.

· Congressional leaders have made it very clear that this is “it” for the home buyer tax credit. There will be no further extensions after the middle of next year.

Federal Housing Tax Credit.com Helps Consumers

· To get the word out to our members and the public, NAHB’s consumer-oriented Web site, http://www.federalhousingtaxcredit.com/, provides complete details on the enhanced home buyer tax credit.

Fragile Housing Recovery Faces Stiff Challenges

2010-01-06T15:37:00.000-08:00

· The recent congressional action to extend the home buyer tax credit through April 30 and expand its eligibility to more buyers will help to boost the fledgling housing recovery.

· However, builders still face significant challenges as the housing market begins to regain its footing.

· Specifically, these involve opening up lines of credit for new housing production and resolving problems with appropriate appraisal values on newly built homes.

Senate Health Care Bill Threatens Housing and Economy
· Of more immediate concern is a jobs-killing provision in the Senate health care bill that that threatens to derail the fragile housing and economic recovery.
· The provision unfairly targets small construction firms by requiring them to provide health insurance or face stiff fines if they employ more than five workers.
· Meanwhile, small businesses in all other industries would be exempt from providing mandatory health coverage if they employ 50 workers or less.
· This provision is patently unfair and economically dangerous.
· It would place a huge competitive disadvantage on the housing sector, which is struggling to rebound from its lowest production levels since the 1940s.
· In short, this is a true jobs-killer. Thousands of small builder firms struggling to stay afloat would go under if this provision were to be enacted into law.
· Opposing this requirement, Sen. Lisa Murkowski (R-Alaska) said: “Why this unprecedented assault on the home builders? I don’t get it.”
· In a letter to Senate Majority Leader Harry Reid, Sen. Blanche Lincoln (D-Ark.) calls this a “potentially devastating provision” and urges Reid to remove it when House-Senate negotiators reconcile their two bills.
· NAHB has also contacted scores of other Republican and Democratic Senators to explain how this provision threatens the viability of countless small home builders across the nation.
· As Congress moves to craft a final health care bill in the coming weeks, NAHB will continue to lead the fight with other like-minded business groups to strip this onerous provision from the legislation.
AD&C Issues and the Partnership Pavilion
· Regarding another top builder concern, NAHB remains in the forefront in sounding the alarm in every appropriate venue about the severe lack of credit for viable home building projects.
· We met with Fed Chairman Ben Bernanke and other top Fed officials last month to discuss ongoing challenges in housing finance.
· We are also urging regulators to issue more flexible guidelines that will encourage banks to maintain funding for residential acquisition, development and construction (AD&C) loans in good standing that fall below their underlying value.
· Going forward, we will continue to reach out to every possible regulator, bank agency and legislator who has the ability to help restore the flow of credit to our industry.

· Meanwhile, we’ve come up with a great new way to try and connect more of our builder and developer members to new sources of funding for land development, residential development and light commercial projects.

· For the first time ever, NAHB is introducing the “Partnership Pavilion” at the 2010 International Builders’ Show this Jan. 19-22 in Las Vegas.

· This new venue is envisioned as a forum where home builders and developers will have the opportunity to discuss their projects and funding needs with representatives from Wall Street, banking interests and private equity lenders.

· Here’s how it will work.

· Prior to the IBS, builders will need to provide specifications on their company and proposed projects via an online portal at www.NAHB.org/partnership.

· That same Web page is the place to go for all the latest information on the Partnership Pavilion.

· Participating financial firms will look at the information provided in advance, and give it their full consideration.

· Then, those organizations that are interested in exploring a potential deal will be able to set up a meeting with the designated applicant at the pavilion.

· At a time when credit for housing production is extremely difficult to come by, we encourage builders to visit www.nahb.org/partnership. It might be just the ticket to find new sources of debt and equity financing.

Get Signed Up For Home Show Today

2009-12-09T14:29:00.000-08:00

The Home Builders Association of Central Michigan is an industry leader in the production of a consumer home and Lifestyle show reaching more then 5,000 adults through the course of a 2 and a half day weekend.

Whether you are an exhibitor or a consumer you will appreciate the Show with its high quality exhibits and your opportunity to meet with your potential customers for 2010. Don't miss out on the chance to meet up with 5,000 plus adults in the course of our Home Show Weekend…March 12th, 13th, & 14th at the Indoor Athletic Complex on the Campus of CMU. This is an exclusive opportunity for companies to gain exposure, book business and build brand awareness among Central Michigan's consumers.

Get registered to exhibit in our Home Show and you’ll understand why we are one of the premier home and Lifestyle Shows in the Central Michigan Area.

A contract is available by logging on to our website at http://www.hbacm.com/

ICC HEARINGS

2009-12-09T13:38:00.000-08:00

We lost on our attempt to remove sprinklers from the 2012 IRC. There were 1,910 voting devices out and active when the sprinkler vote was taken. Most of those were in the hands of fire service personnel, union plumbers, and members of the National Fire Sprinkler Association. As usual, most of these single-issue voters left the hearings once the sprinkler vote was taken.

The IRC Building and Energy Code Committee voted 10-1 to approve EC-16, the NAHB-authored code change to achieve a 30% increase in energy efficiency in the 2012 IECC over the 2006 IECC. These results do not mean automatic adoption of the change. The final vote on this will come at the first of two separate Final Action Hearings next year.

This year’s hearing has seen a marked increase in groups trying to use the construction codes to solve social issues. Proposals to require all new homes to meet visitability requirements, aging-in-place requirements, and apply ADA requirements for multi-family homes to single-family homes. All of these were defeated.

Contact Lee Schwartz @ MAHB for more information at 1-800-748-0432

MAHB Speedway Discount Increases to 5 Cents

2009-12-09T13:33:00.000-08:00

MAHB Speedway Discount Increases to 5 Cents

MAHB and the HBA of Central Michigan is pleased to announce that all participants in our current SuperFleet association fuel program will automatically be receiving a 5 cents per gallon discount for purchases made beginning January 1, 2010, and continuing on through the year.

This means an account/member purchasing 1,000 gallons in January 2010 will now be receiving a $50 fleet discount vs. the traditional $40 earned on the same purchase made in any given month prior. Collectively this would mean an extra $120 savings in 2010.

If you are not already enrolled, please contact Tom Farnham at 989.615.2736 or tcfarnham@ssallc.com.

Going After the Unlicensed

2009-12-09T13:11:00.000-08:00

In early December, the MAHB will be sending out updated PA 400 forms to each local HBA. Public Act 400 allows licensed individuals and/or their local associations to go into court to ask for an injunction to prevent an individual who is unlicensed for continuing to work in the residential construction industry.

MAHB Legal Counsel Greg McClelland has revised the forms based upon changes in the builder licensing requirements. While these forms are easy to use, they will still require the assistance of a local lawyer to complete the blanks and set forth the facts needed to obtain the injunction and to determine the filing fees for the jurisdiction. These are intended for use on your locals level. The MAHB will not be filing for injunctions under PA 400.At the same time, the MAHB and the Department of Energy, Labor and Economic Growth’s Bureau of Commercial Services are both stepping up our efforts to get local prosecutors to go after unlicensed individuals. The Attorney General has yet to prosecute anyone under the changes in the law they requested, instead consistently tells the Bureau to send the cases to local prosecutors for action.

We’ve had discussions with a number of local prosecutors and the Bureau is currently working on the mechanism to allow local prosecutors to tap the Builder Enforcement Fund to help pay for these prosecutions. It looks like Wayne Country will be the first county to actually make use of the changes in the law and the Fund.

Interested in more information contact Lee Schwartz at the Michigan Association of Home Builders 1-800-748-0432 ....our state association looking out for you.

Interest Rates at an All Time Low

2009-12-09T13:01:00.000-08:00

Mortgage rates hit a record low last week, falling for a fifth consecutive time to an average of 4.71% on a 30-year fixed loan for the week ended Dec. 3, according to a Freddie Mac survey.

This was down from the previous week's 4.78% average, which had tied the earlier record low set in April. According to Freddie Mac Chief Economist Frank Nothaft, "Interest rates for 30-year fixed-rate loans are currently 0.8 percentage points below this year's peak set in mid-June, which shaves roughly $100 off the monthly payments on a $200,000 mortgage." To put the low rates in perspective, 30-year rates were at 5.97% about a year ago, and back in 2007, they were approaching 7%.

Sales of new single-family homes Up

2009-12-09T12:50:00.000-08:00

Sales of new single-family homes rose 6.2% in October to a seasonally adjusted annual rate of 430,000 units, according to data released by the U.S. Commerce Department on Nov. 25. The median sales price of new homes sold in the month was $212,000; the average sales price was $261,100. Meanwhile, the number of unsold new homes on the market stood at 239,000, or a 6.7-month supply at the current sales rate. This government report came on the heels of the National Association of Realtors' report on existing-home sales, which showed a 10% gain in October from the previous month. Both new and existing sales numbers were higher than year-ago levels this time around.

MSHDA Announces Property Improvement Loans For Homeowners

2009-12-09T12:31:00.000-08:00

MSHDA’s Property Improvement Program offers low interest home improvement loans to single-family homeowners with low-to-moderate income (up to $65,000, or $74,750 in certain areas), and landlords renting to low-to-moderate income tenants. Eligible home improvements include the following:

Windows;
Furnaces (including geothermal);
Insulation;
Roof repair or replacement;
Solar water heating systems;
Siding;

Other improvements include:

Kitchen and bathroom remodeling;
Foundation repair;
Garage or carport (addition or repair); and
Other permanent improvements to homes.

With the Property Improvement Program, eligible homeowners can borrow up to $50,000 for a single family site-built home. Lower limits apply to manufactured homes. Because we can amortize the loan up to 20 years, the monthly payments are very affordable for those on a fixed income. The interest rate for homeowners is 4%, 6%, or 8%, depending upon income.

Eligible landlords can borrow up to $25,000 per single-family rental unit, and an average of $12,000 per unit for multi-family properties (up to a maximum of $60,000 per property). Eligible multi-family properties cannot have more than 11 units. The interest rate is fixed at 8%. There are no income requirements for landlords, but the rental units must meet MSHDA rental limit guidelines.

If you would like copies of a brochure detailing this information to hand out to customers, friends, and/or neighbors just contact Jess Sobel/Director, Internal OperationsOffice of Community DevelopmentMichigan State Housing Development Authority:

P.O. Box 30044, Lansing, MI 48909(517) 241-0453 (Tel) / (517) 241-6672 (Fax)sobelj@michigan.gov and let her know how many you would like and the address to which you would like them sent.

You can get more details about the program at www.michigan.gov/mshda, then click on the Home Improvement link.

Pavilion at IBS to Help NAHB Members Line Up Financing

2009-12-09T11:21:00.000-08:00

Pavilion at IBS to Help NAHB Members Line Up Financing
Responding to the severe financing challenges that many NAHB members continue to experience when they attempt to line up credit for viable new and existing projects, the upcoming International Builders’ Show (IBS) in Las Vegas will be offering a Partnership Pavilion where association members can discuss their funding needs with representatives from a variety of capital sources and financing advisors.
“The severe lack of available credit for acquisition, development and construction (AD&C) financing constitutes a significant threat to thousands of home building and development companies, as well as to the immediate and long-term future of the housing industry,” said NAHB Chairman Joe Robson.
“Given the current situation, an innovative approach was called for to help our members find new sources of debt and equity financing while reinvigorating the traditional sources of housing credit, and that is the aim of the Partnership Pavilion,” Robson said.
With roughly 80% of all new housing in the U.S. built by NAHB members, and with 95% of the association’s members acting as the key decision makers within their business, “It just makes sense to provide a confidential setting within the IBS for such professionals to meet one-on-one with potential new backers for their projects,” he said.
The Partnership Pavilion will be centrally located, with private office space and concierge services.
NAHB members who are interested in participating in the Partnership Pavilion at the IBS need to qualify prior to the show by providing specific information on their proposed projects. NAHB is currently developing an online form for this purpose; to be notified when this form is available, click here.
Several funding sources will be reviewing the project information submitted by builders and developers, and those who are interested in exploring a given deal will be able to schedule a meeting at the pavilion with the designated applicant.
The pavilion will be open on Tuesday, Jan. 19 from noon to 5:00 p.m.; on Wednesday, Jan. 20 and Thursday, Jan. 21 from 9:00 a.m. to 5:00 p.m. and on Friday, Jan. 22 from 9:00 a.m. to noon.
Click here to view a brief video in which NAHB CEO Jerry Howard explains how the association is pursuing this unprecedented effort to help get credit flowing back to housing by helping its members find and reinvigorate new and traditional sources of housing finance.
For more information, e-mail David Ledford at NAHB, or call him at 800-368-5242 x8265.

HOUSING TAX CREDIT NOW OPEN TO MORE BUYERS

2009-11-18T16:10:00.000-08:00

Housing Tax Credit Now Open to More Home Buyers

If you’ve been thinking about buying a home, and weren’t eligible for the first-time home buyer tax credit, here’s some good news: the housing tax credit has been expanded and extended.

On Nov. 6, President Obama signed into law the Worker, Homeownership, and Business Assistance Act of 2009, which enables many more Americans to take advantage of new government incentives to buy a home. In fact, the National Association of Home Builders (NAHB) estimates that close to 70 percent of all potential home buyers should now qualify for some form of the housing tax credit.

The new law extends the popular first-time home buyer credit, which more than 1.4 million taxpayers have already claimed, through April 30, 2010. Buyers who have signed a sales contract by that deadline have until June 30 to close on the home. First-time home buyers—who the IRS defines as someone who has not owned a home in the three years preceding the purchase—can qualify for a credit of 10 percent of the cost of the home, up to $8,000.

Existing home owners, or those who recently sold their home, may also now qualify for a tax credit of up to 10 percent of the cost of a new principal residence. This new credit is capped at $6,500. “Repeat” home buyers must have been living in the home they currently own (or previously owned) for five consecutive years out of the eight years prior to buying the new home.

Many buyers in markets with a higher cost of living didn’t qualify for the earlier tax credits due to the income limits. Those have been increased and now single taxpayers with incomes up to $125,000 and married couples earning up to $225,000 may be eligible for a full credit. Home buyers earning up to $20,000 more than the limit may be able to claim a partial credit.

Both first-time and repeat buyer credits can only be used with the purchase of a home that will be the buyer’s principal residence. It cannot be claimed for the purchase of a vacation home or property to be used as a rental. Homes purchased for more than $800,000 are not eligible.

NAHB has created a Web site at http://www.federalhousingtaxcredit.com/ to provide information about the housing tax credits. It provides basic information about the first-time and repeat buyer credits, detailed question and answer sections, and links to additional home-buying resources.

The new tax credits, combined with today’s near record-low interest rates and competitive home prices, make it an ideal time to buy if you’ve been considering moving up, downsizing, or just moving into a home more suited to your current lifestyle.

Go to our website at www.hbacm.com for a list of licensed builders that can build you a new home.