FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 4: Issue 3 March 2020
FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE
5 pm - 7 pm
at Kickback Jacks
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Housing Affordability Explained
Applying conventional underwriting standards that the cost of a mortgage, property taxes and property insurance should not exceed 28% of household income, NAHB economists have calculated how many households have enough income to afford a home at various price thresholds. The housing affordability pyramid reveals that 63 million households out of a total of 120 million are unable to afford a $250,000 home.
The affordability problem is explained in NAHB’s new priced-out estimates for 2020.
Costs Up in Recent Builder Survey
The cost of constructing a typical single-family home has gone up, but builder profits have fallen slightly, according to a recent survey of home builders. On average, 61.1% of the sales price, goes to construction costs. Add to that finished lot costs (18.5%), overhead (4.9%), sales commissions (3.7%), financing (1.7%), and marketing (1%), and the average builder profit is 9.1%, before taxes. In separate studies, NAHB economists have found that 24.3% of the cost of a typical, new single-family home comes from regulatory compliance. and impact fees. Those costs were rolled into the various categories – finished lot, construction, financing, etc. – in this survey.
IRS Clarifies LIHTC Income Limits
The IRS has released revenue ruling 2020-4 instructing taxpayers how to calculate Low-Income Housing Tax Credit (LIHTC) income limits should they choose to use the income averaging minimum set-aside test to meet LIHTC eligibility and compliance requirements.
This test was created by the Consolidated Appropriations Act of 2018 to complement the existing tests established by the Tax Reform Act of 1986 and allows LIHTC projects to serve households earning as much as 80% of Area Median Gross Income in some circumstances.
Rates Hit Record Low
The delinquency rate for mortgage loans on single- family homes decreased to 3.8% of all loans outstanding in the fourth quarter of 2019, according to the Mortgage Bankers Association’s National Delinquency Survey. This is the lowest it has been since the series began in 1979.
Codes Vote Could
Preliminary results indicate that a number of aggressive energy efficiency proposals were approved during the online vote on the 2021 cycle of the International Codes Council (ICC). These proposals, known as "zombie proposals," had been defeated at ICC Committee Action Hearings and during the Public Comment Hearings and therefore required a two-thirds vote to pass. No previous proposal had ever met the threshold. But during the ICC's Online Governmental Consensus Vote, held late last year, 20 aggressive International Energy Conservation Codes passed that hurdle.
BUILD-PAC Focused on Election Success
As the 2020 BUILD-PAC chairman, Justin MacDonald has his eyes on the November prize of electing more pro-housing candidates. He knows the best way to get there is to increase the number of members involved in BUILD-PAC, NAHB’s political action committee.
With the 2020 elections approaching, MacDonald wants a continued push for pro-housing legislation, including efforts to reduce excessive regulations that stifle growth.
The cost and availability of labor continues to stand out as the most significant challenge that builders will face in 2020, according to a recent survey of members as part of the monthly NAHB/Wells Fargo Housing Market Index (HMI).
Roughly 85% of builders expect to face serious challenges regarding the cost and availability of labor this year.
Building material prices and the cost and availability of lots were tied as the No. 2 problem builders expect to face in 2020, with these issues cited by 66% of the survey respondents.
All three of these supply-side issues have been a growing concern for builders over the past several years. To put it into perspective, in 2011, just 13% of builders cited labor issues as an important concern, with the rate steadily rising over the ensuing years before peaking at 87% last year.
Rounding out the top five concerns for builders in 2020 are impact/hook-up/ inspection or other fees (60%) and gridlock/uncertainty in the nation's capital making buyers more cautious (56%).
Labor Shortage Remains Top Concern for Home Builders
LA Now Least Affordable
San Francisco, which has been the nation’s least affordable major housing market for the past two years, was supplanted by Los Angeles in the fourth quarter of 2019, according to the most recent NAHB/Wells Fargo Housing Opportunity Index (HOI).
Indianapolis-Carmel-Anderson, Ind. was rated the nation’s most affordable major housing market, defined as a metro with a population of at least 500,000. Cumberland-Md.-W.Va. was rated the nation’s most affordable smaller market.
In all, 63.2% of new and existing homes sold from October through December were affordable to families earning the U.S. median income of $75,500.
Suicides in Construction Climb
Public health experts are increasingly concerned at the high level of suicides among construction workers, according to Scott Earnest, acting director of NIOSH's Office of Construction Safety and Health.
Speaking during the 2020 International Builders' Show, Earnest told the NAHB Construction Safety and Health Committee about the nationwide trend of rising suicide rates among construction workers.
A study showed that the profession with the highest rate of suicides was Construction and Extraction, at 52.1 suicides per 100,000 people.
NAHB has joined the Construction Industry Alliance for Suicide Prevention in an effort to raise awareness of the problem.
Spotsylvania County Bi-Monthly Meeting
Monday, April 6th, 9:00am
Spotsylvania County Builders Roundtable
Tuesday, April 7th, 11:30am
Monday, April 13th, 9:00am
Wednesday, March 4th, 11:30am
Fredericksburg City Quarterly Meeting
Friday, March 6th, 9:00am
Friday, April 24th, 2:00pm
King George County Quarterly Meeting
1. The Spotsylvania County Board of Supervisors determined that the proliferation of unauthorized signs in the right of way of public highways in the County is becoming more prevalent and such signs can create public safety hazards and can have a negative effect on the appearance of the County.
2. An illegal sign is any sign in the right of way that has not been approved by the Virginia Department of Transportation (VDOT).
3. In an effort to address these illegal signs, the County in 2011 revised an agreement with the Commonwealth Transportation Commissioner to better clarify the responsibilities of the County’s enforcement efforts, which consist mainly of illegal sign removal, on behalf of the Commissioner.
4. Enforcement is conducted by the Utilities/Public Works Department, the Zoning Administrator, or duly authorized Code Enforcement Officers.
5. Illegal sign enforcement is limited to daylight hours, during non-peak traffic periods and should be conducted in fair weather.
6. Individuals conducting enforcement efforts must wear reflective safety vests at all times during such efforts.
7. Individuals conducting enforcement efforts shall not distract, disrupt, or adversely affect or impede traffic.
8. All illegal signs are eligible for removal, including illegal signs:
a. Located in the median
b. Affixed to traffic signal poles, utility poles or similar structures within the highway right of way; and
c. Located within the right of way that extends five feet (5’) beyond the pavement edge. For curb and gutter road sections, the edge of pavement is measured from the back of the curb. For ditch road sections, the edge of pavement is measured from the actual edge of the pavement.
9. No sign located on private property shall be removed. If there is a question as to whether a sign is lawfully placed, a photograph of the sign will be sent to VDOT to verify the legality of the sign location. No action shall be taken until VDOT determines that the sign is illegally placed.
10. The County keeps records, in accordance with the applicable Library of Virginia retention policy, of all locations in which the County conducts illegal sign enforcement efforts.
11. All removed signs are stored by the County for a minimum of five (5) business days before disposal of the sign.
Policy Adopted February 25, 2020
NEW! Spotsylvania County Policy
Governing Enforcement and Removal of Illegal Signs in VDOT Right of Way
SAVE THE DATES!
Upcoming County Meetings
The Associates Advisory Council meets the second Wednesday of each month at 9 am. This committee is chaired by the Associate Vice President and plans and organizes several FABA events, and keeps the association focused on the needs of all members.
Calendar at a Glance
Wednesday, March 11th Associates Advisory Council
Wednesday, March 11th Membership Committee Meeting
Thursday, March 19th Legislative Committee Meeting
Thursday, March 19th Hard Hat Networking
Saturday, March 21st FAB Foundation Sips and Suds Bus Trip
Bus Departs Mid South Building Supply 9am
Monday, May 4th Spring Golf Tournament
Fawn Lake Golf Course
NEW Builder/Developer Members (February 2020)
MS Land Development Services, LLC (spike: Sheli Schneider)
The Membership Committee meets the second Wednesday of each month at 10:30 am. This group is responsible for coordinating membership recruitment and the new member mentor program to increase membership retention. Emphasis is placed on recruitment and retention of members with Spike Club, new member receptions, and networking opportunities. The 1st Vice President serves as co-chair.
NEW Associate Members (February 2020)
Cornerstone Elite Properties, LLC (spike: Mary Jordan)
Marie William Properties, LLC (spike: Stacey Lampman)
Renewed Associates (February 2020)
Atlantic Union Bank
Bishop, Farmer & Co., LLP
Community Bank of the Chesapeake
Drafting Surveying Supply
Exceptional Home Designs, Inc.
HomeTeam Pest Defense
Metwood Building Solutions
Navy Federal Credit Union
Nicholls Auction Marketing Group
Southern Spotyslvania Plumbing
United Real Estate Premier
Virginia Paving Company
Renewed Builders/Developers (February 2020)
Crisafulli Building & Remodeling
Inside Out Construction, Inc.
J. Hall Homes, Inc.
NTS Virginia Fawn Lake
Paul Davis Resoration
March 2020 (cont.)
NAHB Student Chapters
The FAB Foundation is chaired by group of voluntary directors who work to help the Fredericksburg area community through several initiatives.
FAB financially supports non-profit organizations in the Fredericksburg region that specifically coordinate and provide home repair and safer living conditions for those in need. Helping make repairs and improvements related to home ownership affordable.
With a greater emphasis on the growing need for Workforce Development in our region, FAB has partnered with local educators and has established two local NAHB Student Chapters in Stafford and Spotsylvania counties, and will continue working toward the establishment of student chapters in all the municipalities that we serve.
FAB Foundation has grant opportunities available for those looking to learn a trade and to potentially partner with member mentors and job placement opportunities. For more information on all the good that FAB Foundation does, call Maria Moore, Fredericksburg Area Builders Association Executive Vice President, at 540-898-2730, email at email@example.com, or go to www.fabava.com and select FAB Foundation tab.
We currently have 3 active high school student chapters
1. Stafford High School
2. Spotsylvania Career and Technical Center
3. Caroline High School
2020 FABA Board of Directors
Spaces Design Studio
1st Vice President
Assurance Financial Group
2nd Vice President
Immediate Past President
MS Land Development Services, LLC
Associate Vice President
Embrace Home Loans
J. Hall Homes
Republic Home Builders
Legacy Engineering, PC
The Legislative Committee meets monthly to discuss the status of local and state level legislation that affects the building industry. For more information from each county, plan to attend the Legislative Committee meeting - third Thursday of the month at 8:30 am
The FAB Foundation board of directors meets monthly to discuss ways to involve the association with local workforce educators and help promote workforce development in our area. If you would like to be invoived with these students, contact FABA for more information.
Part of being a great volunteer is loving what you're doing. Find something that you're passionate about or something that inspires you, and then find a need in your community. There are dozens of reasons why you should volunteer - you just need to find the one that feels right.
20 GREAT REASONS TO VOLUNTEER
- Help others
- Make a difference
- Find purpose
· Enjoy a meaningful conversation
· Connect with your community
· Feel involved
· Contribute to a cause you care about
· Use your skills in a productive way
· Develop new skills
· Meet new people
· Explore new areas of interest
· Meet good people
· Impress your mom
· Impress yourself
· Expand your horizons
· Get out of the house
· Make new friends
· Strengthen your resume
· Feel better about yourself
The Community Service Committee plans and organizes FABA's outreach and service in the local community and partners with members and non-profit groups to find ways to give back.
Thank you to all of our
Cornerstone Sponsors and Advertisers
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FABA works to educate, promote and represent the building industry while enhancing the region’s quality of life.
NEWS AND HAPPENINGS
Send us your press releases, news, and event information! We can post it here in our newsletter and on the Member Happenings page of our website!
Contact firstname.lastname@example.org for more information.
Do you have job openings, apprenticeships, or internships to fill? Contact us today!
FAB Foundation is working with FABA's workforce partners to help you fill these positions with qualified and trained local students.
FABA also posts job openings on the FABA website.
Contact email@example.com for more information or assistance.
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