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Volume 3: Issue 10 │ October 2019
FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE
HARD HAT
THURS. Oct. 17th 5 pm - 7 pm at Wilderness Run Winery Click here for info
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Model Homes Sales Safety Training
Sales of newly built, single-family homes increased 7.1% to a seasonally adjusted annual rate of 713,000 units in August off an upwardly revised reading in July, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. On a year-to-date basis, new home sales for 2019 are 6.4% higher than the same period in 2018. The August reading, adjusted for seasonal effects, suggested that 713,000 units would sell over the next 12 months if this pace continues. There were 326,000 new homes for sale in August, rep- resenting a 5.5 months’ supply. The median sales price of a new home was $328,400. The median price a year ago was $321,400. Regionally, and on a year to date basis, new home sales are 11.7% higher in the South and 7.8% higher in the West. Sales are down 16.5% in the Northeast and 10.5% in the Midwest.
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New Home Sales Rebound in August
Tues. Oct. 29 10AM-12PM at the Spotsy Sheriff's Office
New Plan for Future Of Fannie, Freddie
EPA Rescinds Obama-Era WOTUS Rule Could Be a $2.5 Billion Tax Court
Americans See Growing Affordability Crisis
DOL Raises Threshold for Overtime Pay
Largest Builders Gain Market Share
The EPA on Sept. 12 rescinded the Obama-era “waters of the U.S.” (WOTUS) rule, ending years of uncertainty over where federal jurisdiction begins and ends. Prior to EPA’s repeal announcement, an Obama-era rule was in effect in 22 states and the District of Columbia, and the remaining 28 states followed 1986 regulations. The EPA decision means the 1986 rule will now be in effect in nationwide until a final replacement rule is issued. The Trump administration has proposed a new WOTUS rule that NAHB generally supports.
The U.S. Department of Labor has issued a final rule that will raise the overtime salary limit from $455 per week to $684 per week, which is equivalent to $35,568 per year for a full-year worker. The Labor Department said the final rule will make 1.3 million more American workers eligible for overtime pay under the Fair Labor Standards Act. The final rule takes effect Jan. 1, 2020.
Four out of five American households believe the nation is suffering a housing affordability crisis, and at least 75% report this is a problem at the state and local level as well, according to a new nationwide survey conducted by Morning Consult on behalf of NAHB. More than 19,800 adults were surveyed in August to assess the public’s attitude on whether a lack of affordable housing is a problem. Roughly 80% of all respondents believe that a lack of affordable housing is a problem in the United States, while 78% believe this is an issue in their state and 75% cite housing affordability as a concern in their city.
The Trump administration’s reform plan is an important step forward in the long- term effort to bring a robust and lasting framework to the nation’s housing finance system. NAHB believes it is important that any new structure include an explicit federal backstop for the housing finance system. With Fannie Mae and Freddie Mac 11 years in conservatorship, NAHB believes it is long past time for Congress to act. The top 20 builders produced 29.0% of all the homes constructed in the country in 2018, according to data from BUILDER magazine. That share is a notable gain from 2017, when the largest 20 builders were responsible for 26.8% of all completions. Historical data shows a rising trend in the market share of the top 20 builders. In 2000, these businesses built 16.6% of homes completed.
The Home Depot Foundation and the Home Builders Institute (HBI) recently expanded their partnership to address the skilled labor shortage by launching a youth trades training program. The program and its industry-recognized Pre-Apprenticeship Certificate Training (PACT) curriculum will be available to 11th and 12th grade students in roughly 25 high schools with a focus on under-served communities across Colorado, Florida, Virginia, Alaska, Texas, Alabama, Tennessee, New Jersey and Massachusetts. Each program will be supported by a two-year PACT curriculum, classroom enhancements, and updated tools and equipment for a hands-on training environment. Upon completion, participants will earn a pre-apprenticeship certification — endorsed by NAHB and recognized by the U.S. Department of Labor — provided at no additional cost to students and their families. The program will expand to more high schools in 2020.
After nearly a decade of litigation and two trips to the state Supreme Court, the Home Builders Association of Michigan secured a resounding victory for the home building industry. In 2010, the HBA of Michigan challenged several permit fees imposed by the City of Troy as unlawful under Michigan’s Construction Code Act. The act requires such fees to be reasonable and prohibits them from exceeding the cost of running the building department. But when the department privatized, excess permit fees began going to the city’s general fund. The Michigan Supreme Court recently unanimously ruled in the HBA of Michigan’s favor, remanding the case to the lower courts for further deliberation on the budget of the building department and other issues, but still handing a clear victory to the home builders. NAHB's Legal Action Fund provided $50,000 to support the litigation.
California Passes Rent Control Legislation
Michigan Wins Long Legal Battle
Rent control legislation approved by the California Assembly on Sept. 11 will exacerbate housing shortages and drive up rents. The California Building Industry Association (CBIA), aware of the near certainty of a rent control ballot initiative in 2020, reluctantly supported the compromise legislation, subject to amendments. Since the initial compromise, further changes demanded by California Gov. Gavin Newsom were made to the legislation that forced CBIA to move its position on the bill to neutral. The annual rent cap was moved backward to 5% plus inflation (from the original 7% plus inflation), but the 15-year exemption for new construction was retained. Gov. Newsom is expected to sign the bill into law. NAHB’s policy in opposition to rent control is unequivocal. NAHB opposed the bill and put a stake in the ground on behalf of NAHB multifamily members who may face similar proposals in other states in the future.
HBI, Home Depot Expand Partnership
Spotsylvania County Bi-Monthly Meeting Monday, October 7th 3:00PM King George County Quarterly Meeting Friday, October 11th 10:00AM Stafford County Bi-Monthly Meeting Monday, October 14th 9:00AM Fredericksburg City Quarterly Meeting Friday, November 1st 9:00AM Caroline County Quarterly Meeting Wednesday, December 4th 11:30AM Orange County Quarterly Meeting Friday, December 6th 2:00PM
Fireplaces Not High on Buyers' Wish Lists
Spurred in part by affordability concerns, more consumers are turning a cold shoulder to fireplaces in their homes, according to NAHB tabulation of recently released data from the Survey of Construction, which is produced by the U.S. Census Bureau with partial funding from HUD. Only 41% of single-family homes started in 2018 included fireplaces, which is the lowest percentage on record since NAHB began tabulating the data in a consistent fashion in 2001. Moreover, the share of single-family homes with fireplaces has been declining steadily since 2015, setting a new post-2001 record low each of the past three years. An obvious explanation for the declining trend is that builders are foregoing fireplaces in some of their homes so they can bring homes to market at prices their customers can afford. Keeping new homes affordable has become a considerable challenge, and while fireplaces are generally seen as a desirable amenity, not all home buyers see them as essential. According to the 2019 edition NAHB’s What Home Buyers Really Want, 55% and 48% of home buyers rate gas and wood burning fireplaces, respectively, as desirable. By this measure, fireplaces fall in the middle of the list of decorative features in the NAHB survey in terms of desirability. However, only 16% of buyers say a fireplace is essential, meaning they are unlikely to purchase a home unless it has one.
SAVE THE DATES! Upcoming County Meetings
BBHAffordable Project Enlivens Philly Community
Partner Cornerstone Sponsor
Cornerstone Parter
Thursday, October 3rd Parade of Homes Awards and Celebration 5:00 pm- 9:00 pm Stevenson Ridge Wednesday-Thursday Discover Your Future Career Readiness Event October 9-10th 8:00 pm- 5:00 pm Fredericksburg Expo Center Thursday, October 10th FABA Inaugural Fall Golf Invitational 11:00 am- 6:00 pm Pendleton Golf Course Thursday, October 17th Hard Hat Networking 5:00 pm- 7:00 pm Wilderness Run Winery Friday, October 18th Building a Winning Business Strategy and Plan for 2020 11:30 am- 1:00 pm FABA Boardroom Tuesday, October 29th Model Homes Sales Safety Training 10:00am-11:30am Spotsy Sheriff's Office, 9119 Dean Ridings Ln, Spotsylvania Tuesday-Wednesday FABA Membership Drive October 29-30th All Day FABA Office Thursday, November 7th FABA Annual Meeting 7:30am- 10:00 am Riverside Center, 95 Riverside Pkwy, Fredericksburg VA Wednesday, November 13th FABA, FAAR, CHAMBER Annual Legislative Breakfast 7:45 am- 10:00 am Riverside Center Saturday, January 25th 2020 Presidents Gala 6:00 pm- 11:00 pm The Inn at Old Silk Mill 1707 Princess Anne Street, Fredericksburg, VA 22401
The Associates Committee 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
Update on recent savings yielded from HBAV advocacy in the last 12 months Building Code - (spent countless hours in meetings and testimony) Defeated Mandatory Arc Fault - $250 per home Defeated mandatory fire sprinklers - $5000 per home. Impact Fees - Defeated two pieces of legislation to allow local government to collect impact fees on all new home permits. Saved a minimum of $5k per home. Could be as much as $20k per home as it is in Maryland. Building Permit Fees - passes legislation stating that building permit fees must only be used to run the building permit and inspection office. Fees can’t be used as a profit center. Savings - min $100 per home. Tree Replacement - Defeated three pieces of legislation that would have required builders to replace all trees with the same size diameter that was removed. Saved a minimum of $500 per home. Stormwater - protecting the construction general permit grandfather clauses and working on the new construction general permit for stormwater discharge. Saved developers thousands. Also stopped the regulations from requiring ALL dumpsters at building sites to be covered. Savings of a min of $100 per home. Stopped dozens of mandatory affordable housing bills! Total Snapshot of savings per home-$10,950
Get out the Housing Vote! Do you know which General Assembly candidates in your area support the housing industry? On November 5th, 2019, we encourage all FABA Members to head to the polls and cast your vote for the candidates that will serve as our voice in our local government, the Virginia House of Delegates, and State Senate. All 140 members of the Virginia General Assembly are on the ballot this year and the Home Builders Association of Virginia is working to elect candidates to office who truly understand that housing plays an important role in our local, regional, and national economies! The housing industry employs hundreds of thousands of individuals across the Commonwealth - and it's absolutely critical that we all head to the polls on Election Day! In the weeks leading up to the November General Elections, HBAV will send out a list of candidates who support our industry and information about your polling location. Thank you for your support of the housing industry!
-Bi-monthly or quarterly meetings with building officials from all five local counties and the city of Fredericksburg and meetings with BOS members and/or County Administrators. -Stafford County transportation impact fee reduction from $5,900 per lot to $2,999 -Changed definition of building height in Stafford County – most Single Family Dwellings now in compliance. -Changed Stafford County’s reserve drainfield requirements. -Pushing to make all submissions electronic – including upgrade of Stafford computer system and scanner, now more builder-friendly. -Currently working with Stafford on revised lighting standards. -In Stafford and Spotsylvania Counties, FABA facilitated VDOT agreement to allow water and sewer lines in the streets instead of in an easement on the lots. -FABA has spoken against fee increases in every jurisdiction in the past – most jurisdictions have not considered increases lately, but when they do, they typically seek our input. Most recently in April of this year two FABA board members spoke at Spotsylvania Board of Supervisors Meeting which resulted in a reduction of the proposed 20% fee increase to a phased-in increase over four years at 5% per year -Reduced SWM criteria for City of Fredericksburg – working with Friends of Rappahannock and City officials. -Coordinated the cluster mailbox issue with USPS. -Advocated for Proffer reform statewide
Legislative Impacts
Code Updates -- HBAV spent countless hours in meetings and testimony providing input and guidance on Building Code updates to save building costs: Defeated Mandatory Arc Fault – SAVING $250 per home Defeated mandatory fire sprinklers – SAVING $5000 per home Impact Fees – Advocated and successfully defeated two pieces of legislation to allow local government to collect impact fees on all new home permits. SAVING a minimum of $5k per home, up to as much as $20k per home (as it is in Maryland) Building Permit Fees – Advocated to pass legislation stating that building permit fees must only be used to run the building permit and inspection office. Fees can’t be used as a profit center. SAVING a minimum of $100 per home Tree Replacements -- Defeat of three pieces of legislation that would have required builders to replace all trees with the same size diameter as removed. SAVING a minimum of $500 per home Stormwater – Advocated to protect the construction general permit grandfather clauses and working on the new construction general permit for stormwater discharge. SAVINGS to developers in the thousands of dollars. Waste Management -- Stopped the regulations from requiring ALL dumpsters at building sites to be covered. SAVING a minimum of $100 per home. Plus, dozens of mandatory affordable housing bills were defeated! Total Snapshot of savings per home-$10,950
Summary of impact FABA had locally
Update on recent savings yielded from HBAV advocacy in the last 12 months
Platinum Cornerstone Sponsor
Fredericksburg Area Builders Association Presents October 5-6 & 12-13, 2019
Come see what we're building for you! visit: www.FredParade.com for details, addresses, and information
October 2019 Membership Report
New Associate Members (September 2019) RPD Contractors – spike Dan Sandoval Signature Home Settlements, LLC – spike Dan Sandoval Member – spike
Renewed Builder Members (September 2019) Charleston Company Home Builders, Inc Cobb Custom Builders, Inc Lennar Corporation
Renewed Associate Members (September 2019) 6 Degrees LLC, DBA ACES Industry Group Annandale Millwork and Allied Systems Dewberry Franklin Electric Co, Inc Illusions Wraps Liberty Roofing Center Metro Stone Works Purvis Ford, Inc Residential Warranty Company, LLC Wells Fargo Home Mortgage
The Membership Committee meets the second Wednesday of each month at 10 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 Builder Members (September 2019) Signature Series Construction – spike Dan Sandoval
FABA Education
Model Home Sales Safety Training
When: Tuesday, October 29th Time: 10:00AM-11:30AM Location: Spotsylvania Sheriff's Office 9119 Dean Ridings Lane, Spostylvania Courthouse Description: A course taught by a member of the Sheriff's Department designed to address safety concerns and steps that can be taken when staffing a model home or for real estate professionals when showing homes to future buyers. Register Here
Building a Winning Business Strategy and Plan For 2020
When: Tuesday, October 18th Time: 11:30AM-1:00PM Location: FABA Boardroom Set Your Business Up For Success! This workshop discusses the key steps to successful annual business planning. Mike will review the Vision and Mission of your business, as key components, as well as discuss the importance of being strategic in your approach to planning for 2020. You will learn how to identify and develop winning goals and objectives for your business as you finish 2019, and build a winning strategic plan for 2020. This is a great business building session for any organization!
Discover your future expo
Click here to Reserve YOUR COMPANY'S Booth
FAB Foundation
October 8-10th @ Fredericksburg Expo Center No cost for booth for businesses Multiple sponsor levels available Click Here for more information.
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 mmoore@fabava.com, or go to www.fabava.com and select FAB Foundation tab.
Why Volunteer? 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
Community Service
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.
www.DominionEnergy.com
Platinum Cornerstone Sponsor:
Gold Cornerstone Sponsor
Gold Cornerstone Sponsors
2019 FABA Board of Directors
President Marc Simes Vakos Companies 1st Vice President Stacey Lampman Spaces Design Studio 2nd Vice President Scott Hine Assurance Financial Group Secretary Sara Fila Legacy Engineering Treasurer Jeremiah Horstick CORELOT Immediate Past President Gene Brown Atlantic Builders, Ltd. Associate Vice President John Reid Embrace Home Loans Executive Officer Maria Moore FABA Legal Counsel Charlie Payne Hirschler Builder Director Dan Sandoval Republic Home Builders Builder Director Sean Halsey Halsey Homes Builder Director Tim Hall Tricord Homes Builder Director Teressa Taylor-Griffis Foundation Homes Builder Director Brandon Serbay Built Right Homes Builder Director Michelle Hall J. Hall Homes Associate Director Bruce Reese Legacy Engineering, PC Associate Director Frank Sigmon Builders FirstSource Associate Director Rusty Cowper Embrace Home Loans
The Legislative Committee meets monthly to discuss the status of local and state level legislation that affects the building industry. For more information from each county, plan to attend the Legislative Committee meeting this Thurs, Oct. 17th 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.
Legislative News
Silver Cornerstone Sponsors:
We help you ask the right questions about home or commercial roofing and exteriors. By combining our passion for our industry and our belief in 100% customer satisfaction, you have found the right experts for quality advice. Our goal is to provide our customers with the most outstanding service in the industry while maintaining a family atmosphere for our customers, vendors, and employees. Our 30,000 square foot facility allows us to buy in large volume and pass the savings on to our customers. Our partnerships with several manufacturers have strengthened our resources giving us valuable insight and education that we pass on to our customers. We are consistently proactive in researching new products, materials, and techniques so that our clients will have access to the latest product offerings in our market.
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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 admin@fabava.com for more information.
JOB OPENINGS? 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 admin@fabava.com for more information or assistance.
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