# Nation's Building News Online: February 9, 2004 Print All Articles Text Version
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# An Interview With Assistant Treasury Secretary Wayne Abernathy Recent interviews with Assistant Treasury Secretary Wayne Abernathy and NAHB Executive Vice President Jerry Howard on regulation of the housing GSEs find some common ground: both agree that privatization of Fannie Mae and Freddie Mac is a bad idea. Secretary Abernathy says: "We're not supporting any proposals for privatization." CEO Howard adds: "Efforts to privatize . . . should be opposed." But on other aspects of the debate — issues that will likely decide the future of America's housing finance system — there are some sharp differences of opinion. The following interview of Assistant Treasury Secretary Abernathy was conducted by NAHB Senior Vice Presidents Robert Pflieger and David Crowe on December 10. To read an accompanying interview with NAHB Executive Vice President Jerry Howard, click here. ROBERT PFLIEGER: Mr. Secretary, what do you believe is the mission of Fannie Mae, Freddie Mac and the Federal Home Loan Banks? And do you believe there should be changes in those charters? WAYNE ABERNATHY: Congress was clear when they created the housing GSEs that generally their mission was to harness this nation’s unparalleled financial resources to make the dream of homeownership a greater reality, particularly for those who have been traditionally underserved, like minorities and low-income Americans. The purchase of a home is probably the largest financial allocation that most Americans will make in their lifetime, and GSEs helped make the 30-year, fixed-rate mortgage the bread and butter of our housing finance system. And today many Americans own homes who otherwise would not have had that opportunity. Expanding homeownership is a top priority of the Bush Administration. President Bush has outlined an aggressive housing agenda that includes the American Dream Downpayment Fund, the Single Family Affordable Housing Tax Credit, simplification of the home-buying process and increased home-buying education. Congress has also recognized that homeownership is a priority for this nation and has reinforced that principle on numerous occasions. The Administration has proposed a strong and effective new regulator for the housing GSEs because expanding homeownership is a top priority, and the GSEs play an important role in doing that. Appropriate oversight of them is necessary to ensure that the housing GSEs will be able to continue to play this role now and into the future. MR. PFLIEGER: It has been widely acknowledged that housing has played an incredibly important role over the last couple of years in keeping the economy strong. What, in your view, is housing’s overall contribution to the growth of the economy, recently and over the long term? And what role have the housing GSEs played in that growth? MR. ABERNATHY: There are two parts to that. First of all, let’s talk about the importance of homeownership to the economy. Treasury’s Office of Economic Policy estimates that residential investment accounts for about 5% of Gross Domestic Product overall, and sometimes it accounts for a significant portion of the growth of GDP — over 1% in the third quarter of FY 2003. The building, furnishing and maintaining of homes are extremely important as a share of our economy. But I think probably the most significant impact that homeownership has on the economy is what it does for communities. Go to a community where most of the people rent their home. Compare that with the community where most of the people own their home, and it’s a world of difference. There’s a world of difference in the way the people take care of their homes, the investments they make in their homes, the investments they make in their communities, the roots that they put into their communities and how they participate in the life of the community. Knowing that you own your home means not only that you take better care of your home, but you tend to take better care of your community. MR. PFLIEGER: You mean housing’s social benefits? MR. ABERNATHY: You get more involved in local politics because you figure you’re going to be there a while, and so you’re much more likely to be a participant in the choice for the local alderman than you would be if you were renting there and not planning to be there very long. And there’s a myriad of other kinds of — you’re probably more involved in the schools. You’re more involved in the churches and other good things that take place. People tend to become more involved in the places where they own their property and the home that’s there. That’s what I think is the most significant benefit of homeownership in this country. GSEs play a role by helping to make the 30-year, fixed-rate mortgage into a very commonplace, liquid investment that allows a lot more of our tremendous financial resources to be devoted toward helping people buy their first homes and their second home, or to expand and build upon their homes. Without that, the 30-year, fixed rate mortgage might be seen by lenders as a riskier investment. DAVE CROWE: Why do you describe a mortgage as being a potentially dangerous investment? MR. ABERNATHY: From the lender’s point of view, long-term mortgages are subject to a wide variety of risks, particularly when you’re talking about a fixed-rate loan. When you have a fixed-rate loan, you’re tying up money over a long period of time, and so you increase the amount of exposure that you have to whether or not someone’s going to honor their payments over that period of time. You have exposed the person who provides that money to liquidity risks, and to the risks that financial institutions may need that money for other things because they have a lot of other demands. That financial institution is exposed to interest rate risks that can occur over the life of that particular loan as rates rise and fall. The secondary markets help mitigate a large portion of that risk by spreading it among a greater pool of investors. In a lot of other countries a 30-year, fixed-rate mortgage is a very hard thing to find. In this country, for a long period of time, the 30-year fixed-rate mortgage was something that was hard to find. We needed to find mechanisms by which financial institutions would be willing to commit large sums of money for long periods of time, and the housing GSEs have played a major role in creating those instruments and providing liquidity that allows financial institutions to make those kinds of investments an everyday occurrence. MR. PFLIEGER: And continue to play? MR. ABERNATHY: And they continue to play that role, they certainly do in a variety of ways. And I think it’s interesting the way the different pieces work together. You have, by and large, Fannie and Freddie that are focusing on what you might call standardized, cookie-cutter types of loans, which is what you need to do in order to securitize them. The Federal Home Loan Banks play a very important role in providing liquidity for conforming as well as non-conforming loans. A member of a Federal Home Loan Bank can use these assets as collateral to get funds from a Federal Home Loan Bank to take care of any liquidity needs that institution may have, and thereby make that bank or thrift or credit union more likely to engage in that kind of investment. MR. PFLIEGER: What is Treasury’s view of the wide range of federal policies that support a strong housing delivery system — everything from the mortgage interest deduction, to the low-income housing tax credit, to housing’s share of the federal budget, to the government’s support of the housing GSEs? MR. ABERNATHY: As I mentioned before, the Bush Administration has made increased homeownership a top priority, and has proposed numerous ways to make this dream a reality for more American families. Secretary Snow shares the President’s strong commitment to housing and believes that the housing sector is a crucial component of our economy. Housing is making a tremendous contribution to the current economic recovery. It certainly is no secret that this Administration is a strong supporter of the mortgage interest rate deduction. That has been a key element, a key piece of our tax code for a long period of time and a lot of people rely upon it. It allows a lot of people to get into homes earlier than they otherwise might, and to able to free up the funds they need in order to make their monthly payments. With regard to a number of the other pieces that are designed to help increase homeownership, President Bush proposed the American Dream Downpayment Fund in 2002, and Congress enacted it a few days ago. This program will help low-income Americans overcome what is sometimes the number-one obstacle to buying a new home — amassing the money for the downpayment. A lot of people are making rent payments that are the same or more than what a mortgage payment would be and they would love to own their own home, but they can’t put together the downpayment. They’re paying all their money in rent. They can’t put aside enough money in savings for a downpayment, but they have demonstrated the ability to make a regular monthly payment, they just do it in rent. If they can find help to get that downpayment in place, they could turn that rent into equity and homeownership. The Administration estimates that this new program will help approximately 40,000 families a year with their downpayment and closing costs. MR. CROWE: Can you elaborate on the Administration’s homeownership goals? MR. ABERNATHY: President Bush has set very aggressive housing goals. In June 2002, he announced that he was setting a new minority homeownership goal of at least 5.5 million new minority home owners by the end of the decade. But even though homeownership levels are higher than they have ever been before, the President is still not satisfied. He has recognized that there are still segments of the population that are below the overall national level of homeownership that we can reach with various types of assistance. That’s why this Administration has put forth numerous programs to help serve minority populations in particular. Sometimes it’s just outreach. You get folks and help them understand that homeownership is within their reach, but they just don’t have the knowledge or the understanding to put together all the different pieces. So there’s a lot of outreach being done to show them just what the steps are. I think that the proposal that the Department of Housing and Urban Development is looking at to try to simplify RESPA and all of the processes involved with settlement are excellent ideas to try to make that whole process — which can be very bewildering to people — a lot simpler and more understandable. People hear these horror stories about home buyers going into settlement and having surprises, and they are never pleasant surprises; they’re always unpleasant. If people knew before they walked into that settlement room what their expenses were going to be, you would be taking away one of the additional obstacles to homeownership today. MR. CROWE: Looking at the Administration’s goal to increase homeownership rates among minorities, would Treasury be willing to support federal initiatives designed to address the problems you just mentioned and expand homeownership opportunities? MR. ABERNATHY: President Bush and this Administration are committed to helping more Americans, especially communities that have been traditionally underserved, such as minority Americans, own their own homes. In addition to the housing programs which the President has put forth that I have already mentioned, part of the package that Secretaries Snow and Martinez have proposed to Congress would give HUD additional resources to enforce the various housing goals, and part of that is to break the housing goals into some segments. This would help us achieve not just the overall goal of increasing homeownership among all Americans, but also concentrate on the sub-goals that focus on increasing levels of homeownership among various minorities. With regard to innovation that helps us reach those goals, one of our concerns is that the GSEs, as they grow, continue to stay focused on their mission, which is to expand the envelope of people who can get their homes, who can buy homes, who can purchase homes and not that the GSEs go experimenting in other things that may have only a tangential connection to homeownership. MR. PFLIEGER: Do you believe that the GSEs have gone beyond their mission? MR. ABERNATHY: I don’t know if they have or not. That’s something that the supervisor would need to be able to look at. We want to make sure the supervisor has full authority to be able to look at that, so if they see a proposal that somebody wants to put forth, the supervisor needs to be able to say, “Well, that might be a very interesting proposal and it might increase the financial resources of the entity, but it doesn’t have a whole lot to do with housing. We would prefer that you did your innovating on how you can find new ways to put people into homes as opposed to new ways to increase your bottom line, which may or may not have a direct bearing upon housing.” MR. CROWE: It could be argued, however, that a profitable balance sheet also puts the GSEs in a position to expand their support for the housing market? MR. ABERNATHY: We are all in favor of innovation. Increasing profits isn’t the sole or the primary responsibility of the GSEs, however. In fact, there may be situations where the GSEs should be obtaining a below-market return to provide additional funding to housing markets. That might not bring the full 15% return that they might be accustomed to. It might bring them only a 5% or a 10% return, but it’s still a positive return, and that’s the kind of market that Congress said they ought to be involved in. MR. PFLIEGER: You have been quoted in the media recently questioning the financial condition of Fannie Mae and Freddie Mac, and, let me quote you directly,“we really don’t know what’s going on.” Do you believe that taxpayers face an imminent threat? MR. ABERNATHY: No, I don’t think they pose an imminent threat. I think if there were an imminent threat, there would be certain signs that we would see. But the real issue is that we need a strong, credible regulator that will be able to detect developing problems before they become major problems, and currently we don’t have the kind of regulator or the kind of disclosure from the GSEs that would allows us to do that. For example, Freddie has yet to live up to its commitment to register under the 1934 Securities Exchange Act, and they said that they most likely will not do so until 2005. They have finally put forward their annual report, but they said they aren’t going to give any quarterly data for 2003 until at the earliest June of 2004. I can’t imagine that investors are well served by a major corporation like Freddie Mac conducting business that way. While Fannie Mae was able to register under the 1934 act almost a year ago, Freddie has not, and until Freddie does that, there are important elements of disclosure that are not available, and so our ability to catch problems early on is compromised. MR. CROWE: Would you say that’s a major concern? MR. ABERNATHY: I am concerned that there could be significant problems developing, and the current level of disclosure does not allow regulators to catch those problems before they become disruptive to the role the GSEs play in the housing markets and the financial system. This is a further reason that we need a new, strong and credible regulator. MR. PFLIEGER: Isn’t that OFHEO’s job right now? MR. ABERNATHY: I think it is, but OFHEO, doing the best they can with what they have, were still caught by surprise when Freddie had its accounting problems. I think that suggests that over time, in spite of the people at OFEHO doing the best they can, they just do not have the resources, focus, stature and authority to do the job that needs to be done. MR. CROWE: Do the GSEs pose an imminent threat? MR. ABERNATHY: No, I have no reason to believe that is the case, but that being said, we don’t have the same disclosure for those corporations as we do for other corporations in America, and certainly not the world-class disclosure rules required for financial institutions. In fact, if you look at corporations in America, the level of disclosure we have for financial corporations is even greater than what we have for corporations in general. The reason why you need that is because, as we saw — as we have seen in many financial institutions that have melted down in the last 20 years or so — when they go bad, they can go bad very quickly just because of the nature of financial institutions. Money is so fungible and it moves so quickly, and because confidence is such an important part of the health of any financial institution, that’s why, perhaps more than a corporation that’s in the manufacturing business, we need to be able to have the confidence that they’re operating in a safe and sound manner early on. MR. PFLIEGER: That leads me to another question. Wall Street doesn’t seem to have expressed any lack of confidence in the GSEs. It seems, though, that you have lost confidence in them. MR. ABERNATHY: I would say that we are concerned that the level of supervision and disclosure is not adequate, and we believe that the housing finance markets will be better served if there is a new, credible regulator. I believe that the market has responded to the problems at Freddie differently and perhaps not as severely as if similar problems had been uncovered at a non-GSE. That may be due to the fact that many market participants believe that the federal government would step in if one of the GSEs were to default, even though the bonds state on their face that they are not guaranteed by the federal government. MR. CROWE: Do you think that’s what’s supporting the stock prices of Fannie and Freddie? MR. ABERNATHY: I don’t know if it affects their stock prices as much as it affects their bond prices. Their cost of funds certainly benefits from that assumption. Their stock prices, I think, have been influenced to some degree. If you compare Freddie’s stock prices with Fannie’s, there is a very significant difference in terms of the price-to-earnings ratio. I think Freddie’s is about half of what Fannie’s is in terms of price-to-earnings ratio, reflecting at least some unease, some disquiet, about Freddie’s condition. MR. PFLIEGER: During a Senate Banking Committee hearing on Sept. 23, Senator Sarbanes asked all the panelists to express their views on the idea of privatizing the GSEs. Let me ask you the same question. Does the Treasury Department — the Administration — support privatizing the GSEs? MR. ABERNATHY: We don’t have any plans to promote privatization. We’re not supporting any proposals for privatization. That has not been on our agenda or even in any of our discussions. MR. CROWE: What about the line of credit extended to Fannie and Freddie? MR. ABERNATHY: The discussion that we have been engaged in and our focus over the last several months have been on establishing the appropriate supervision for Fannie and Freddie. We’ve been focusing on getting the right regulatory structure. But let me just point out that, with regard to a line of credit, you have to understand that it is not really a line of credit, but rather the opportunity — the authority that the Treasury has to purchase the securities of Fannie and Freddie. But we have also said on multiple occasions that if Congress wants to look at other issues and would like us to engage in discussion with them, we will do that. But the discussions that we have initiated and our focus are on getting the regulatory system right. MR. CROWE: But opening that door does suggest you might be amenable to it. MR. ABERNATHY: It means if Congress wants to open the door we will have that conversation, and then we will have to decide what kind of policy we have on it. We have not taken a policy position on it nor have we had a policy discussion about whether that is a good idea or a bad idea. But if Congress thinks that there is merit to it and wants us to engage in that, then we will engage in a policymaking process and see if we have a view on it. MR. PFLIEGER: Have you encouraged Congress? MR. ABERNATHY: In that regard, no. I think if you look carefully at what Secretary Snow said when he testified before the House and I think re-echoed when he testified before the Senate, he emphasized that the most important thing we need to do is get the regulatory system right, and that’s what our main focus has been. But again, if Congress wants to deal with this issue or others, we’re certainly open to engage in that conversation. MR. CROWE: Let’s shift to a discussion about who should regulate the GSEs. Recently, there’s been speculation in the press and elsewhere about appointing a totally independent regulator. And you have stated previously that Treasury’s first priority is setting up a solid, world-class regulator for the GSEs. What are the characteristics of a truly independent regulator that you would feel comfortable with? Is this a point where the housing community can find some common ground and reach a compromise? MR. ABERNATHY: What’s most important is that we get the details of the regulator right. The supervisor has to have all the authorities that are needed to carry out its job. That includes full authority over both elements of capital, with minimum capital and risk-based capital. It includes authority over all of the elements of prudential supervision, including authority over new activities. And it includes having an independent source of funding. It includes being able to go to the courts on its own dime, on its own ticket, without having to solicit permission to do that from the Justice Department. Then people want to get into the question of where to put that entity. We have made it clear that if you want to put it in Treasury, there are certain requirements that need to be met, but that’s only if people want to place that entity into Treasury. MR. CROWE: Those are the only conditions for an independent regulator? MR. ABERNATHY: Well, again, the Administration has consistently said that there are certain elements that are essential to an effective, prudential regulator. Secretary Snow outlined those elements in his testimony before the House of Representatives Financial Services Committee in September. The Administration’s requirements for this new regulator are drawn from the powers and authorities that other world-class regulators have in this country and elsewhere. MR. CROWE: And you said new program activity? MR. ABERNATHY: Yes, we believe the new regulator must have authority over new activities. MR. PFLIEGER: You’ve reportedly taken the position that new program authority for the GSEs should be placed under the new regulator, that it cannot remain at HUD and that that position is non negotiable. Is that correct? MR. ABERNATHY: One of the essential elements of an effective regulator is the ability to approve new activities, not just new programs. You cannot point to an effective, world-class regulator of financial services that doesn’t have that authority. MR. CROWE: The regulator’s ability to essentially veto a program on financial safety and soundness grounds is not sufficient? MR. ABERNATHY: It’s not just safety and soundness. There are other elements that tie into it. There are a whole variety of risks that financial regulators look at when they’re looking at the activities of the institutions they are regulating. There are certainly the safety and soundness issues with regard to the financial aspects, but there’s also reputational risk, there are legal risks that they look at, there are management risks. Does this institution have the ability to manage these activities and how do these activities interact with the other activities of the institution? Do they have appropriate ability to understand all the aspects of the activity and where it might lead? All of those things need to be taken into account and looked at. It’s done in a very effective way with those agencies that have that power, and it’s done in a way that doesn’t slow down the ability to bring to market new products. If you look at America’s banks today, they are the world innovators. When it comes to financial services, it’s the United States that develops the new financial services, and they do it within a system where the bank regulators have authority over those new products. MR. CROWE: Could you see this independent regulator — independent of Treasury —operate as a “board,” with equal standing between HUD and Treasury? MR. ABERNATHY: As you know, the type of regulator, whether it is within the Treasury Department or a separate agency entirely, is still an issue that Congress is examining. MR. PFLIEGER: As part of this discussion over how the new regulator is set up, is there an opportunity for industry to participate? MR. ABERNATHY: There is, particularly for those who are the users and beneficiaries of Fannie’s and Freddie’s products. MR. PFLIEGER: Like the home builders. MR. ABERNATHY: Yes, like the home builders, like home buyers and people who supply other aspects of that, the financial institutions that originate the mortgages; all of those need to be looked at. I think there need to be some conversations with Fannie and Freddie, but keep in mind that these institutions were created by Congress to serve certain purposes of Congress. Therefore, Congress, the government, will play the major role, because these are government-sponsored enterprises, and the government ought to have the significant say in how they’re going to be supervised. And so, while they ought to be consulted with, I don’t think their views ought to determine what the final product is. MR. PFLIEGER: So you might see a role for the housing industry in that dialogue. Again, I don’t want to put words in your mouth, but in the event that there is a discussion about creating an outside agency board to regulate the GSEs, you see a role for the housing industry to have a seat at the table for those discussions. MR. ABERNATHY: I think whatever we do with regard to GSE supervision that that process ought to include a discussion with those who rely upon the services of the GSEs to make sure that what we’re creating is going to be able to meet their needs. And as I say, that includes the people who build the homes as well as the people who sell the homes as well as the people who buy the homes and the ones who finance them and originate the mortgages. I think all of those people ought to be involved in that process to make sure that we’re having a system that will be robust enough to continue the great benefits we have of this wonderful financial system for housing and finance. MR. CROWE: Fannie and Freddie both supply capital to the multifamily market as well as the single-family sector. Do you envision a major a role for Fannie Mae and Freddie Mac in facilitating the flow of capital to the multifamily market? MR. ABERNATHY: I think in our discussion we have been talking about basically the context of single homes, but the GSEs do play an important role in the multifamily market as well. And frankly, if you include the Federal Home Loan Banks, a lot of that money also goes into providing rental homes, and that’s important as well. There are a number of people for whom, for whatever reason, their best option is a rental home, and we don’t want that segment of the housing market to be neglected either. MR. PFLIEGER: You have stated a preference for regulating the Federal Home Loan Banks under the same regulatory umbrella being proposed for Fannie and Freddie. Does this make sense given the significant differences in the structure and operation of Fannie Mae and Freddie Mac versus the Federal Home Loan Banks? MR. ABERNATHY: They are different. They’re similar in the markets that they serve, but I think they’re complementary in many ways as well. But I think you can accommodate supervision of Fannie and Freddie and the Federal Home Loan Banks in the same agency, provided you have two divisions within that agency. There is some area for overlap, but there are also separate structures. You have 12 institutions that are cooperative in nature. They are created as mutuals, mutual institutions in essence, in effect. And then you have two that are for-profit entities, and they have different structures and different market forces that affect what they do. There’s also a good deal of overlap. Certainly in the backroom operations, making sure you have your legal team, your financial analysts, your accounting staff and your examination staff. You could have that same set of staff to provide you the kind of resources you need, whether you’re looking at the Federal Home Loan Banks or Fannie or Freddie. In fact, one of the benefits of putting them together in one institution is you would address one of the problems you have with examination staff for Fannie and Freddie today. If you’re a career examiner at OFHEO, your whole career you’re going to look at either Fannie or Freddie, and it’s hard to discover what best practices might be. The examination process is a give and take. The examiners are on the one hand coming in with a jaundiced eye, with a critical eye to see what can be improved, but they’re also learning. They’re learning about the good practices underway in one place that they can then carry to the next institution they look at. That happens in the banking world all the time. When you’re dealing with Fannie and Freddie, they are so much alike it’s hard to bring anything new to one or the other. But if your examiners are examining Fannie Mae this year, and next year they’re looking at the Federal Home Loan Bank of San Francisco, there may be some good lessons that they can learn from those different reviews that they can benefit each of them. MR. PFLIEGER: One reason you have given for having new GSE programs approved by the safety and soundness regulator is to eliminate the bifurcation of Fannie and Freddie’s oversight by HUD and OFHEO. But under your proposal, HUD would still continue to establish and enforce Fannie and Freddie’s affordable housing rules. Doesn’t this also represent a bifurcation of mission oversight if new program approval powers are moved to a different regulatory entity? Why are you concerned about bifurcation in one case but not in the other? MR. ABERNATHY: The best place for housing goals to be set and monitored is with the experts at HUD. The goal setting is not part of the supervisory process. But, while Fannie, Freddie and the Federal Home Loan Banks help us meet those goals, they are ultimately financial institutions. The new supervisor should have all the powers necessary to be a world class financial regulator, including new activity approval. The benefit in keeping goal setting and new activity approval somewhat separate is that HUD can look at those goals without being subject to the day-to-day supervisory responsibilities and concerns and worries. HUD can focus on what the housing market needs, and whether or not the GSEs need to stretch a little bit to meet these goals. The supervisor will look and say, “Go ahead and stretch, but as you’re stretching we’re going to make sure you’re not snapping. My job is to make sure you don’t snap and that you stay focused.” HUD sets the target, the supervisor looks at it to see whether or not the bow you were using is a good bow, whether your arrows are straight. But let HUD set the target. MR. PFLIEGER: Let me conclude by thanking you for participating in this interview. Before closing, are there any other points you would like to leave with NAHB’s 215,000 members? MR. ABERNATHY: Well, perhaps — and the only thing I would add that we haven’t covered here yet is our view that the need for having a good, effective supervisor is not going to go away. The need is probably going to increase, the mission responsibility that they have is so important that we can’t allow ourselves to get by much longer with inadequate supervision of these housing GSEs. We have to make sure that they’re safe today and that they will be safe tomorrow to be able to continue their mission. To read an accompanying interview with NAHB Executive Vice President Jerry Howard, click here. # An Interview With NAHB Executive Vice President Jerry Howard Recent interviews with Assistant Treasury Secretary Wayne Abernathy and NAHB Executive Vice President Jerry Howard on regulation of the housing GSEs find some common ground: both agree that privatization of Fannie Mae and Freddie Mac is a bad idea. Secretary Abernathy says: "We're not supporting any proposals for privatization." CEO Howard adds: "Efforts to privatize . . . should be opposed." But on other aspects of the debate — issues that will likely decide the future of America's housing finance system — there are some sharp differences of opinion. The following interview NAHB's Jerry Howard was conducted by NAHB Senior Vice President David Crowe in late December. To read an accompanying article with Assistant Treasury Secretary Wayne Abernathy, click here. DAVID CROWE: What does the housing industry believe is the mission of Fannie Mae, Freddie Mac and the Federal Home Loan Banks? Should there be changes in their charter? JERRY HOWARD: I find it interesting that the Administration has been so critical of Fannie Mae, Freddie Mac and the Federal Home Loan Banks recently. The fact of the matter is that Fannie Mae, Freddie Mac and the Federal Home Loan Banks play an integral role in implementing the Administration’s federal housing policy. These entities have evolved into extremely critical components of the nation’s housing delivery system. Their mission is to provide liquidity and stability to the housing credit markets, particularly in areas that otherwise would not be adequately served. By their Congressional charters, these government-sponsored enterprises (GSEs) receive several privileges and legal exemptions to assist them in achieving their housing mission. With the help of these GSEs, more than two-thirds of the nation’s households are home owners. In addition, these GSEs play an important role in the financing of affordable rental properties. Much of this is due to the public/private partnership established by Congress more than a half-century ago. Efforts to diminish their GSE status or misguided attempts to overhaul their regulatory oversight could impair the ability of these enterprises to perform their critical role in the housing finance system. Changing the GSEs’ agency status or removing the housing perspective from their regulatory oversight could have negative ramifications on the housing finance system. Some of these negative impacts could include higher mortgage rates, increased volatility in the cost and availability of mortgage credit (especially for affordable housing), lower homeownership rates, fewer affordable rental units and reduced mortgage product and technological innovations. # MR. CROWE: It has been widely acknowledged that housing has played a particularly important role over the past couple of years in keeping the economy stronger than it would otherwise have been. How has government policy contributed to this effort? And what role do you think the housing GSEs have played? MR. HOWARD: Housing has been huge, and NAHB is pleased there is such wide recognition that the housing market has been the key engine of growth in recent years. The housing sector continued to excel in 2003, with new home sales achieving a record performance of more than a million closings. Single-family home construction totaled nearly 1.5 million units in 2003 and multifamily activity, while more subdued, still posted a respectable showing, pushing total housing starts above 1.8 million units. While low interest rates and favorable demographics spurred demand, these results would not have been possible without the support of the finance system for housing. The effectiveness and resilience of this system is the result of a steadfast commitment of federal policy makers to improving the nation’s housing conditions and opportunities. The bedrock of the housing finance system is a liquid and vibrant secondary market that is the product of the activities of Fannie Mae and Freddie Mac. These enterprises have not only contributed to the affordability of housing credit, but also have taken the lead in expanding the menu of affordable housing programs and products. The Federal Home Loan Banks also continue to play an important role both by providing liquidity to housing lenders and by developing innovative programs to address housing needs. MR. CROWE: What is the housing industry’s view of the wide range of federal policies that support a strong housing delivery system — everything from the mortgage interest tax deduction, to the Low Income Housing Tax Credit, to housing’s share of the federal budget and the government’s support of the housing GSEs? Are there ways in which the federal government could improve its support? MR. HOWARD: The United States’ housing delivery system exemplifies a healthy balance of private and public resources that provides greater housing opportunities for all. The federal government’s support of the housing finance system, in partnership with financial institutions, and via the provisions of mortgage insurance and guarantees, is crucial to a stable and growing secondary market. As I mentioned, government-sponsored enterprises provide critical links between the national and global financial markets and the housing finance system, further enhancing stability and growth. And direct federal expenditures serve to reduce the cost of decent and safe housing to affordable levels. Finally, the U.S. tax system has been used for decades as an effective and efficient policy tool that expands housing opportunities without elaborate and expensive bureaucracies. Tax incentives distill public policy goals into economic terms, and tax payers react in the marketplace as they would to any other economic signal. While we are the best-housed nation, there’s always room for improvement. For example many well-intentioned federal regulations, primarily aimed at environmental concerns, have unintended adverse impacts on housing affordability. We believe that environmental protection can be equally effective if the economic impact of these laws and regulations is evaluated against the environmental benefit. This is not currently required, but should be. Also, housing policy should undergo review and refinement as housing and community development needs shift and evolve. The housing “rocket scientists” have come up with an idea for a new tax credit to spur minority homeownership and economic revitalization of downtrodden communities, and legislation to establish such a program is now before Congress. We need to continue to add new housing policy tools, as well as fine tune the proven mechanisms. MR. CROWE: To what extent are you concerned about the current condition or operation of Fannie and Freddie? MR. HOWARD: We are not aware that anyone, even Fannie’s and Freddie’s harshest critics, is claiming that a crisis is looming. These companies are in solid condition, as OFHEO continues to certify. The accounting problems at Freddie Mac certainly are real, but it’s a case of being more profitable than previously stated. Both companies continue to meet very tough capital tests with flying colors and we see no evidence of erosion in their financial health. We wish other companies were in as good a shape. MR. CROWE: The housing industry has been adamant in its opposition to taking control of the GSE programs away from HUD and putting it in the hands of the Treasury. Why is it so important for this authority to remain at HUD? MR. HOWARD: It’s quite simple — HUD is the only cabinet agency with a thorough understanding of, and extensive involvement in, housing-related issues. I have a high regard for the Treasury’s ability to oversee the safety and soundness of Fannie Mae and Freddie Mac’s operations. But those who care about housing are extremely skeptical of Treasury’s intentions in volunteering to be a “world-class” housing-GSE regulator because, time and again, they have expressed an anti-housing bias in their policy statements and actions. This is a historic bias that goes back for decades and has been apparent in both Democratic and Republican Administrations. That just doesn’t seem like the kind of regulator you want to have in charge of deciding the types of things Freddie, Fannie and the FHLBanks can and cannot do. NAHB strongly believes that Fannie Mae’s and Freddie Mac’s ability to spur innovative solutions and to develop new products that increase homeownership will continue only if the mission of these corporations is regulated by an agency that understands and is immersed in housing-related issues. HUD has proven itself to possess the capacity to adequately evaluate the potential benefits to housing from the GSEs’ innovation and advancement in products and to ensure that the GSEs do not stray from their statutory mission. To make a good thing better, HUD’s program oversight could be strengthened through the establishment of an independently funded office within HUD. Having an office within HUD dedicated to mission oversight of Fannie and Freddie would be preferable to the current situation where GSE oversight is conducted through the Office of Housing with few dedicated staff and staff from other HUD offices are detailed on an ad hoc basis for GSE oversight duties. Of course, there would be staffing, administrative and operational costs to achieve this increased regulatory scrutiny. One way to minimize the costs to taxpayers is to handle it by assessing Fannie Mae and Freddie Mac to fund the new HUD office. The new program approval process is another area where it seems like people are trying to substitute regulatory bureaucracy for common sense. The current process rightfully limits prior approval to new programs, which are defined as very broad undertakings unlike what is currently being done. Others are proposing to significantly broaden what would have to be approved to include any new business activities. Submitting each new activity to the approval process envisioned by the Administration would result in such micromanagement of the GSEs’ innovations that they would be unable to respond to changing market conditions in a timely fashion. The result would be to stifle or severely inhibit development and implementation of valuable new mortgage products and technological innovations that have helped to dramatically expand homeownership in the country. MR. CROWE: There has been speculation in the media and in Congress about what an independent regulator would look like and that it could possibly be a board. Is there possibly room there to compromise? Given that there are some strong differences between the Administration and the housing industry and within Congress about the role of a new independent GSE regulator, particularly over the issue of program oversight, do you perceive any common ground between these two views that might suggest the possibility of a compromise? MR. HOWARD: The discussions about who should regulate the housing GSEs have been like performing exploratory surgery on the central nervous system of the housing industry and the economy in general. No one wants to jeopardize the housing finance system that is the envy of the world. But, many people feel passionate about their views. And rightly so. After all, we’re not talking about widgets, we’re talking about peoples’ homes. Here is NAHB’s perspective plain and simple: the regulatory framework for the GSEs should be credible and effective to ensure these organizations fulfill their mission in a safe and sound manner. If every policy maker focuses on this goal, I’m certain the outcome will be a world-class regulator. Things get bogged down when people focus on protecting their turf. I’m pleased that the Administration, lawmakers and key policy makers have resumed discussions. As I mentioned before, NAHB strongly believes that HUD is the appropriate agency to regulate the mission of Fannie Mae and Freddie Mac, including approving new programs and establishing affordable housing goals. However, we’d be willing to explore the feasibility of establishing an independent GSE regulator outside of Treasury so long as that entity has a thorough understanding of and extensive involvement in housing-related issues. The regulator could be structured with a governing board of directors that includes HUD officials and representatives from the housing sector on the board to ensure the GSE regulator possesses sufficient housing-related expertise. MR. CROWE: Treasury Assistant Secretary Wayne Abernathy has suggested that there might be a role for the housing industry in the discussion over how the new regulator is set up? What do you believe the industry’s role should be and what points do you believe need to be emphasized if that dialogue should arise? MR. HOWARD: I wouldn’t say there “might” be a role. I’d say there must be a role. It would be a huge mistake to turn discussion on GSE regulation into a free-for-all referendum of our highly successful housing finance system. Decisions that have not been vetted by those who will have to live with them could have catastrophic consequences for housing. NAHB urges a careful and thoughtful approach on GSE regulation and believes such a course will produce tremendous rewards to those with most at stake in the process — America’s home owners and renters. NAHB’s involvement in the discussion over how the new regulator is set up would add the wisdom, knowledge and experience of over 215,000 direct participants in the production of housing and related activities. In fact, here is what NAHB members believe should be the guiding principles of the GSE regulatory reform debate: The first principle is that the GSE status of these institutions must be maintained. Efforts to privatize, withdraw any of the federal privileges and legal exemptions or otherwise diminish the ability of the GSEs to provide housing financing at the lowest possible cost should be opposed. Our second guiding principle is that the GSEs should fulfill their public mission by conducting activities authorized by their charters in a safe and sound manner and by promoting access to mortgage credit to address the needs of affordable housing throughout the nation. Third on our list of principles for reform efforts is that the regulatory framework of the GSEs should be strong and credible, possess adequate authority and resources and reflect the differences inherent in the charters and operating structures of the GSEs. Further, the regulatory framework should foster competition among the GSEs to develop and implement innovative, low-cost funding and other programs to meet the nation’s housing credit needs. Fourth, the mission oversight of Fannie Mae and Freddie Mac (including approval of new programs and enforcement of affordable housing goals) should be conducted by the Department of Housing and Urban Development or another entity with a thorough understanding of, and extensive involvement in, housing-related issues. Fifth, we believe that the safety and soundness oversight of Fannie Mae and Freddie Mac should be conducted by an independent regulatory agency through rigorous examinations, enforcement of regulations (including capital standards) and transparency, without unnecessarily impairing the ability of these GSEs to accomplish their mission. The sixth of our guiding principles is that the recently implemented risk-based capital standards for Fannie Mae and Freddie Mac should be allowed to remain in place for a period of time sufficient to evaluate the effectiveness of the new standards. And seventh, the regulation of the mission and safety and soundness of the Federal Home Loan Bank System should reflect the uniqueness of the system’s mission, cooperative operating structure, charter type and other characteristics. This is best accomplished by having a regulator dedicated solely to FHLBank System oversight or by having a separate FHLBank System oversight division if a single agency regulates all of the housing GSEs. To read an accompanying interview with Assistant Treasury Secretary Wayne Abernathy, click here. # Woodyard Golf Tournament Provides Support for Political Action The culminating event in NAHB’s year-long golf program in support of BUILD-PAC, the 13th annual NAHB Golf Tournament of Champions, in memory of Jim Woodyard and sponsored by Fannie Mae, was held on Jan. 20 at the Angel Park Golf Course in Las Vegas in conjunction with the International Builders’ Show. Woodyard, who was an active and influential member of NAHB and a long-time supporter of BUILD-PAC, died on Nov. 19, when the single-engine aircraft he was piloting crashed in the Idaho back country. In this pivotal presidential election year where control of both chambers of Congress is hanging in the balance, the golfing program helped to raise thousands of dollars for BUILD-PAC, NAHB’s political action committee, whose mission is to elect pro-housing candidates to Congress. The tournament drew more than 280 builders and associates. Last year, more than 3,700 golfers participated in state and local tournament program to support the housing industry’s political action efforts. “With this level of participation, we were able to raise over $450,000 for pro-housing federal candidates, allowing NAHB to continue to have a powerful and influential voice on Capitol Hill,” said Bob Nielsen, 2003 BUILD-PAC chairman. “I would also like to recognize and personally thank Fannie Mae, our sponsor of this year’s tournament,” said Nielsen. “They helped to make the 2003 National Golf Tour such an exceptional program, and without their great support we would not have been able to host this exciting event.” # Free Publication Provides Background on Trends in Homes and Apartments The latest edition of NAHB’s media backgrounder, “Housing Facts, Figures and Trends 2004,” provides a compendium of historical information on home and apartment building in the U.S. The 50-page publication details annual home prices, mortgage interest rates and characteristics of new homes and apartments over the last 13 years. It also lists the top 50 metro markets for housing permits, popular materials used in new homes and apartments, and home buyer preferences. Also featured in the new publication is a listing of the nation’s most affordable housing markets, information on how housing affects the economy and an examination of housing affordability issues. Homeownership rates and historical U.S. demographic data are also provided. Following are just a few of the highlights from “Housing Facts, Figures & Trends 2004”: The top metro market for single-family permits in the first nine months of 2003 was Atlanta, with 40,580 permits issued. Other metros in the top five include Phoenix-Mesa, AZ; Riverside-San Bernardino, CA; Houston; and Washington, D.C., in that order. The top metro market for multifamily permits in the first nine months of 2003 was New York, with just over 15,000. Other metros in the top five include Houston, Chicago, Atlanta and Las Vegas, in that order. The median and average prices of new and existing homes more than doubled in the last two decades of the 20th century. An average of 19 windows, 19 tons of cement and 13,837 board feet of framing lumber go into a typical newly built 2,272 square-foot home. A walk-in pantry is the most favored special feature in new-home kitchens, with 78% of respondents in a recent NAHB survey rating it as desirable or essential. The next most important kitchen features are island work areas (71%) and light wood cabinets (59%). Multifamily home building in 2002, which totaled 347,000 units, generated 357,000 jobs (in worker years of employment), $13.3 billion in wages and $7.1 billion in federal, state and local taxes, according to NAHB estimates. In the first 12 months after purchasing a newly built home, owners spend an average of $8,905 to furnish, decorate and improve their investment. Buyers of existing homes spend $3,766 more than non-moving home owners during the 12 months after purchasing their home, and renters also spend significant amounts on furnishing their new homes and apartments. To download the publication, click here. # Good Self-Defense Strategies Will Help Protect Your Business From Fraud The third in a series about preventing fraud from affecting your business. Several years ago I took a basic self-defense class. I learned effective combat skills, but the most valuable lessons I learned concerned: • Being mentally prepared • Proactively avoiding problems before they occur • Recognizing dangerous situations and identifying emerging problems • Planning safe, effective responses to dangerous situations Controls are key to self-defense. Several universal concepts come into play whether you’re defending your life, your honor or your assets (on behalf of yourself, your family, employees, vendors or customers). Use the following self-defense strategies to protect your business from fraud. Develop an Awareness of Danger This is your first line of defense. You must raise your level of awareness to continually recognize that fraud exists and can happen to you. When you sense danger, trust and act on your “gut response.” For example, if you see an employee furtively slide one sheet of paper beneath another when you walk into the room, or he can’t give you logical answers when you ask specific questions, or she acts defensive when you look in her desk for information you need, don’t ignore your sense of unease. Investigate. Control Your Environment You’d plan ahead so you wouldn’t have to walk alone through a dangerous part of town at 2 a.m. Likewise, think ahead about possible fraud scenarios so you can avoid or detect them. For each asset at risk: Consider how it could be used improperly or illegally. Blank checks are but one example of such an asset — it could be easy for someone to steal and use some of your blank checks. Re-evaluate current risky practices. Do you store your blank checks in a box next to the printer? Develop effective prevention techniques. Store your back stock of blank checks in a locked, fireproof filing cabinet and lock limited quantities of your current check stock in a secure drawer in the accountant’s office. Practice backup and contingency plans. What do you do if someone needs to pay for a delivery and the checks are all locked up? Monitor usage. To keep tabs on your blank checks and ensure none are missing or used improperly, try keeping back stock in security-sealed boxes, periodically counting current check stock, using manually-prepared check number/approval logs and performing interim and/or immediate bank reconciliations. Prepare your weapons. Develop procedures to recover the asset if it has been used fraudulently or if its security has been compromised. Here are some steps you might take if anyone has left some blank checks lying around or you discover some are missing: Immediately contact the bank to see if the checks have cleared; make a stop-payment request if they haven’t and file a police report for stolen checks that have cleared the bank. Meet with the bank’s security officer to determine the next steps. Change bank accounts. Many other assets are at just as much risk as those blank checks. You should apply the six steps outlined above to all your vulnerable assets. Don’t Look Like a Victim Here are some examples of business weaknesses that contribute to fraud or allow it to occur quietly and undetected over time: Incomplete or inaccurate financial reporting Not comparing planned job costs, sales or company performance with actual outcomes Checkbook registers that aren’t accurate or aren’t reconciled with bank statements Bills regularly paid late Financial transactions delegated to others with little or no supervision Missing, disorganized, cluttered or inefficient documents and filing Letting everyone know that, “Sue always handles all of the paperwork” Company owner and/or management ignoring financial reports or the “numbers side” of the business If any of these conditions exist in your business, you’re at high risk for fraud. Don’t make the situation worse by advertising these financial weaknesses inside or outside your company. You may need immediate, qualified professional assistance to put effective financial controls in place. Then you can begin to work from a position of true (vs. perceived) strength and internal control. Act Quickly, Find Help, Fight Smart It’s one thing to know you’re vulnerable and another to suspect you’re in actual, immediate danger of losing assets. If you have any evidence of even a minor problem, don’t wait to take action. Many frauds seem insignificant when discovered, but few are actually as small or innocuous as they first appear. Here are pointers for developing an action plan: Maintain a friendly, professional demeanor with all employees. If you suspect an employee of wrongdoing, do not immediately confront him on your own or dismiss him; you may encounter a variety of legal pitfalls. Contact your attorney, CPA and perhaps an information technology consultant within 24 hours of discovering or suspecting fraud. Ask them for advice on how to: Obtain information from the employee. Handle the employee’s dismissal and exit from your premises. Secure your premises and computer data (Note: If you believe the employee’s computer was involved, do not turn the computer on or off or do your own searches. You can easily destroy evidence that an expert could extract). Safeguard evidence (e.g., on computers) and determine the full extent of the loss. Protect yourself from potential lawsuits or other fallout. Determine whether or not to press charges. Consider the time, stress and money required. Try to obtain restitution. Present the situation to other employees. Do not try to resolve the problem yourself. You don’t have the expertise to handle it and may make the situation worse or do something that doesn’t produce good long-term results. Instead, ask your professional advisors how to proceed. Unfortunately, you never really “win” when you encounter fraud or any self-defense situation. The best you can do is to cut your losses as quickly as possible and avoid more bloodletting. That’s why front-end prevention is so critical. Diane C.O. Gilson, CPA, CIA, is a Certified QuickBooks ProAdvisor and MasterBuilder ProAdvisor, author, trainer and construction accounting coach, as well as a frequent speaker at The International Builders’ Show and The Remodelers’ Show. Her firm, Info Plus Accounting PC/CPA, offers bookkeeping and support services to help construction companies do more accurate and timely job costing and run better management reports. Contact Gilson via e-mail, or call her at 734-544-7620. Earlier Articles in this Series To read, “Protecting Yourself From Fraud: An Introduction,” Part 1 of this series, published Dec. 15, click here. To read, "Are You at Risk? Protecting Yourself From Fraud," Part 2 of this series, published Jan. 26, click here. 'Accounting with QuickBooks Pro®' Available at BuilderBooks.com "Accounting with QuickBooks Pro® for Home Builders and Remodelers," including a CD-ROM with a trial version of QuickBooks Pro®, is available through BuilderBooks.com. From writing payroll checks to generating up-to-date income statements, this book will help you get the maximum benefit from your accounting system. To view or purchase it online, click here or call 800-223-2665 to order. Business management publications available at BuilderBooks.com BuilderBooks.com also offers a variety of other publications about business management. To view or purchase these publications online, click here. Want more information about effectively managing your business? NAHB’s Business Management Department offers a variety of online resources to help you run your business better and more profitably. Click Business Management Tools for articles about human resources, financial management, sales, production, technology, customer service and other business-related topics. In addition, visit the NAHB Software Users Network Discussion Forum (SUN) to ask technology consultants and other builders what they think of various software packages and applications. Subscribe to NAHB’s Business of Building e/Source NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, click here on the members only side of www.nahb.org. University of Housing Offers Courses on Customer Service and Business Management The NAHB University of Housing offers a course on business management designed to help builders improve their business and profitability. For a list of current offerings, click here. Search keywords: “Introduction to Business Management.” The NAHB University of Housing offers designation programs for builders and remodelers interested in improving their productivity and profitability. Click here for a list of NAHB designation programs. Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts. # New Book Examines Changing Role of Property Managers Multifamily management used to be “collecting the rent, supervising maintenance and repairs — and sometimes even mopping the floors,” according to David Kuperberg and N. Mike Patellis, authors of “Residential Property Management,” a new book from BuilderBooks.com. These days, though, say the authors, “each residential property is like a branch office, an independent business center with...goals to meet.” That sort of enterprise needs a professional manager, one who’s trained to prepare a budget and understand legal requirements and responsibilities. And beyond that, “the manager needs communication skills, marketing expertise and more,” says Kuperberg, himself a RAM (Registered in Apartment Management) and a CPM (Certified Property Manager). The new publication on property management will be the textbook for the revised and updated RAM course that is being piloted this year, according to Patellis, also a RAM and CPM. With the information the two have pulled together, students will be able to understand the important issues and develop strategies to deal with them in a professional manner. But the book also was designed to serve as a reference for people involved in property management at every level, from the site itself to the corporate office. “There really aren’t any comprehensive property management guides out there that focus only on residential management,” says Patellis. “This is a reference you can consult whenever a question arises. It’s indexed, it has a glossary and it’s as complete as we could make it.” The new book includes information on updated approaches to record-keeping and reporting used by firms who must be accountable not merely to syndicates or shareholders, but to large corporate investors. It includes information on managing condominium communities and co-ops, as well as now-privatized military base housing. It talks about higher-tech methods of communication, and when to use them. The authors note that in the RAM textbook they helped write in 1987, they talked about “this new thing — computers — that might transform the workplace.” In this edition, computer use by professional manager is a given. “If you’re not using computers, you’re not in this business.” The book also addresses the top problem areas — the issues that, if handled badly, can land a company in court or worse. Those include: Fair Housing Accessibility rule Americans with Disabilities Act rules Responding to lead paint Responding to mold Responding to asbestos Hiring practices — what you can and can’t ask legally. Patellis and Kuperberg appeared at the International Builders' Show in Las Vegas last month to answer questions and to sign their new book. To order a copy, click here. 2004 NAHB Multifamily Pillars of the Industry Conference & Awards Gala Don’t miss the Multifamily Pillars of the Industry Conference and Awards Gala, the premier educational and networking event of the year for the multifamily industry, in Palm Springs, CA, March 28-30. Explore both the current and future state of the multifamily industry. Click here for more information. # 2004 Multifamily Finalists for Pillars Awards Announced Finalists for the 2004 Pillars of the Industry Awards — which honor excellence in development, design, marketing and management in the multifamily housing industry — were announced recently by NAHB. The awards program was created in 1990 to honor superior achievement and leadership in the multifamily industry and to promote the benefits of apartment living. “These are not your father’s apartments and condominiums,” said Jerry Howard, executive vice president and CEO of NAHB. “This year’s Pillars program proves once again that today’s multifamily communities are better than ever and offer a wide variety of great lifestyle choices to residents.” Finalists were named in 29 categories, including Freddie Mac’s Multifamily Development Firm of the Year and Property Management Company of the Year. Howard noted a huge jump this year in the number of entries in the “Best Mixed Use Community” category, reflecting the growing popularity of rental and condo homes interwoven into communities with retail as well as other commercial space. “These apartments and condos have helped revitalize urban neighborhoods across the country,” Howard said. Winners will be announced at a gala ceremony held in conjunction with NAHB Multifamily’s Pillars of the Industry Conference, March 29, at the La Quinta Resort & Spa in Palm Springs, CA. For the first time, NAHB will present a Pillars Award for “Multifamily Community of the Year,” selected from among the winners in all the builder award categories. Freddie Mac, one of the nation’s largest investors in multifamily housing, will sponsor the 2004 Pillars of the Industry Gala. Freddie Mac is committed to developing new products and processes to keep down the cost of rental housing while providing superior service and innovation. For a list of finalists, click here. # Deadline Nears for Building With Trees’ Awards of Excellence Competition Conservation-minded builders and developers are invited to enter the 2004 Building With Trees Awards of Excellence competition, sponsored by The National Arbor Day Foundation in cooperation with NAHB and Firewise Communities. The deadline for entries is Feb. 15. The Awards of Excellence competition is part of the Building With Trees Recognition program, which was created in 1998 to recognize builders and developers who save trees during construction and land development. Residential, commercial, retail, industrial, public and mixed-use projects of all sizes are eligible. Only completed developments can be entered, with projects of 200 units or more considered complete if at least 75% of the homes have been built. Judging criteria include creativity in, and attention to, protecting and planting trees during planning, design and construction and in providing for long-term tree care; commitment to tree protection by having a tree professional on the development team; inventorying existing trees and using that information to preserve trees; and communication of, and adherence to, tree protection goals throughout construction. Awards will be presented at the Arbor Day Foundation’s national Building With Trees Conference in September. Award-winning projects will also be recognized on the foundation's Web site and in national publications. For entry information, click here or contact the Foundation's Building With Trees program director at 402-474-5655. 2004 National Green Building Conference The National Green Building Conference, March 14-16 in Austin, TX, explores cutting-edge building technologies and looks at the future of green building in America. The conference includes education and networking opportunities and explores why a growing number of home builders are “going green” by making cost-effective business decisions that also help the environment. Click here for more information. # Action Kit Promotes Adoption of the International Residential Code With the International Residential Code (IRC) now ready for adoption at the state and local level, NAHB has developed an IRC Action Kit to help HBA leaders across the country educate building department officials on the benefits and practicality of adopting this code. Developed with input from NAHB members, the IRC specifically highlights affordability in its purpose statement. The code pertains to the construction of one- and two-family dwellings and townhomes that are no more than three stories. As a stand-alone code, it covers all facets of home construction, which means that builders don’t need to be concerned with meeting multiple code requirements. During an educational seminar at last month’s International Builders’ Show in Las Vegas, Joseph Knarich, an NAHB construction, codes and standards specialist, said that the kit lays out how the IRC compares favorably with other model building codes. “Over 60% of the Council of American Building Officials (CABO) One and Two Family Dwelling Code is incorporated unchanged in the IRC,” he said. “This makes the IRC very builder friendly. Furthermore, NAHB worked diligently to ensure that the concept of affordability is included in the IRC and helped to craft many favorable code changes for builders.” To persuade local jurisdictions to adapt the IRC, Knarich urged HBAs to follow the kit’s guidelines, which provide tips on developing lobbying and grassroots strategies, establishing community support, orchestrating public hearings, communicating the findings to the public and cooperating with local decision-makers. Paul Armstrong, the vice president of architectural engineering services for the International Codes Council, reiterated the advantages of the IRC. “This is the only prescriptive code that is now available, it contains the latest natural hazard mitigation construction techniques, covers all aspects of home construction and is a well-balanced code that was developed with the help of engineers, builders, code officials and other interested parties,” Armstrong said. Local HBAs interested in obtaining NAHB’s IRC Action Kit should e-mail Joseph Knarich or call him at 800-368-5242 x 8366. # Builders Report Progress on Zero Energy Homes New technological advances are enabling more builders across the country to design and construct Zero Energy Homes (ZEH), which use efficient design and renewable energy to produce as much energy as they consume annually. During an educational seminar at last month’s International Builders’ Show in Las Vegas, four builders shared their experiences working on these cutting-edge homes. Centex Homes recently completed its first ZEH home in Livermore, CA. According to project manager Jeff Jacobs, making such a venture a success requires support from management, manufacturers, suppliers and subcontractors. “Our home used solar water heating and photovoltaic cells and was developed using standard construction techniques,” said Jacobs. “Our process consisted of selecting the right home, one with the necessary attic and roof space for solar panels. We added two large gable vents to bring in nighttime air in the evening. The system, developed in conjunction with our subcontractors and field managers, nearly eliminated the need for compressor cooling in the summer.” The single-story prototype home is wired so that all systems can be monitored and includes more than 50 sensors to provide data for a cost-benefit analysis. The photovoltaic system produced 102% of the home's electrical needs. However, Jacobs acknowledged that not all of the home's technological innovations were cost-effective, and he called for continued government funding to encourage new breakthroughs. Combining renewable energy and solar energy with highly energy-efficient products, Robb Aldrich, an engineer with Steven Winter Associates in Norwalk, CT, designed a modular ZEH home in New York City. “Site and orientation have a definite impact on energy production,” he said, noting that a typical home that is oriented from north to south consumes far less energy for heating and cooling indoor air than the same home turned at a 90-degree angle. Aldrich said that solar panels on an affordable home geared to buyers earning 80% of the area median income cut the average monthly electricity cost from $66 to $26. In Las Vegas, Pardee Homes recently constructed a 5,300-square-foot ZEH home, equipping it with a solar water heating system, photovoltaic systems, fluorescent halogen lighting, insulation in the ducts, a highly efficient air-conditioning system, Pella windows and insulation close to R-40 (as opposed to R-21 normally used). “This home’s owners are extremely proud of their ZEH status,” said Rob Hammon, principal of ConSol, an energy consulting firm based in Stockton, CA. In order to further advance the technology, Hammon added that new research is needed to integrate solar energy into homes and to bring costs down. In Tucson, John Wesley Miller Companies' ZEH home — which is part of a 100-home infill development — utilizes solar photovoltaic and water heating technology. “The heating and cooling bill for our typical 2,000-square-foot home is less than 90 cents per day,” said Miller. On hot days, the home owners really get a kick out of watching their electric meter run backwards.” In order for ZEH to take hold in the marketplace, the panelists said: More research and development is needed. Federal support for the initiative must continue. The pending congressional energy bill that includes builder and consumer incentives should be passed. Training and education should be expanded. Sound cost/benefit analysis must be developed. # PATH Unveils Home Building’s Top 10 Advanced Technologies The top 10 new technologies that are ready to be used in the housing industry were announced by the Partnership for Advancing Technology in Housing (PATH) at the NextGen ’04 house that was built in conjunction with last month’s International Builders’ Show in Las Vegas. On the edge of industry acceptance, the technologies are proven, practical, easy-to-use and quickly drawing interest as builders experience the benefits of using them, PATH said. “The top 10 technologies hold the most promise for improving the quality and affordability of our homes,” said General Deputy Assistant Secretary Darlene F. Williams of HUD’s Office of Policy Development and Research. “These technologies are ready now and they can perform in the houses that we build tomorrow.” The “Top 10 Technologies” named by PATH are: Frost Protected Shallow Foundations Air Admittance Valves Home Run Plumbing Systems Low Impact Development Engineered Panelized Systems HVAC Optimization Optimum Steel/Wood Combination Framing Tankless Water Heaters Shared Wastewater Treatment Systems Pre-cast Concrete Panels Technologies profiled by PATH are selected for their strength in one or more of the following areas: quality and durability; energy efficiency; environmental performance; safety and disaster mitigation; and affordability. For more information on each of the top 10 technologies, click here. # Kitchens Now the Focal Point of Household Activity Kitchens have come out of the closet and are now the hub of family activity. That was the consensus of the four architects and designers who hosted an educational session, "Kitchen Design: Trends & Tools for Today’s Kitchens," at last month’s International Builders’ Show in Las Vegas. Not only have kitchens increased as their household role has expanded, they are now designed to be more flexible in order to accommodate the different heights, ages and numbers of cooks in the kitchen at the same time. They are also more open, inviting and convenient, more centrally located and more diversely decorated. More Room for Socializing “The kitchen has become the Grand Central Station of family life,” said John DiNisio, the creative director at Feinberg & Associates Architects of Gibbsboro, NJ. “They must be placed where the cook can be included in the family’s activities and be able to keep tabs on what’s going on both inside and out of the home.” No longer your grandmother’s kitchen, which usually was isolated from the rest of the house, and where meals were prepared from scratch and the only bow to style was a pair of cheery curtains and some pretty canisters, DiNisio said kitchens today are usually open to the family room, have a wide view of the outdoors and are filled with lots of natural light. “Kitchens today are much larger,” he said. “Food preparation has become a social activity that involves several members of the family.” He also said that many people who like to entertain at home insist on having a “party kitchen,” one large enough to prepare meals, serve guests and be conducive to mingling. Consumers are demanding more architectural interest, DiNisio said, and this is being satisfied by a trend toward higher ceilings; decorative beams and moldings; large, unusual-shaped windows; and ornate cabinetry. The higher ceilings, he said, allow for taller cabinetry, make the rooms look taller and add storage space. Even smaller kitchens are incorporating many of the same characteristics as their larger counterparts, DiNisio noted. He suggested that smaller kitchens be located on an outside wall so they can take advantage of natural light. Locating smaller kitchens there also gives architects and home builders an opportunity to include cathedral ceilings and outside windows to make a narrow space more open, he added. Clever Conveniences and Attitude Inside today’s kitchen you can now find multiple sinks, multiple ovens, oversized or tabletop dishwashers, combination microwave/toaster ovens and even the return of dumbwaiters, said Mary Jo Peterson, president of the design firm Mary Jo Peterson, Inc., of Brookfield, CT. Home owners, she said, are seeking convenience, and appliance manufacturers are supplying it. “The story about sinks is bigger, deeper and more,” Peterson said. Not only that, they are being supplied in a variety of surfaces, including stainless steel, still the number-one preference, but also copper, bronze, a variety of stones, solid surfaces and enamels. “The sink is an opportunity to make a statement,” she said. With convenience a primary factor in kitchen and appliance design, manufacturers are responding with appliances that can handle the increased amount of activity in today’s kitchens. Freezers, refrigerators and dishwashers now come with drawers. There are microwave ovens combined with coffee makers, larger refrigerators, multiple — but not stacked — ovens, dishwashers are raised, as are washers for clothes. “People don’t want to bend anymore,” Peterson said. “With the appliances, it’s all about the details.” To make the whole kitchen more convenient, storage is finding its way into backsplashes, toe kicks are getting larger, up to nine inches tall, open shelving and walk-in pantries are more prevalent and dumbwaiters are returning and giving home owners access to storage in another part of the home. The reason for all these changes: “We’ve given up kitchen walls to windows, so we don’t have tall spaces anymore,” said Peterson. Kitchen décor now includes attitude, she added. Materials include granite, marble, metals, even concrete. Countertops have new edge treatments, which all can be incorporated within the three major design trends for kitchens — Traditional, which includes lots of cherry and a country flair; Organic Contemporary, which has hints of Shaker, sculptural lighting and simple, natural flair; and Old World, which incorporates rich woods and hardware, and small niches, and can include European cottage design. Warm, Frantic and Comforting According to Barbara Anderson, owner of Preferred Designs, Inc. of Kennett Square, PA, today’s kitchen is defined by the family that it embraces. There can be a special workspace for mom that includes a woven chair and office/desk area. Kitchen islands are doubling as eating areas. Called “conversation islands,” they are configured so family members or guests can sit around the island rather than in a straight line. Oversized islands with a European look — known as “harvest islands” — also are finding their way into larger kitchens. Regarding design, painted and glazed cabinets are becoming popular, according to Anderson. Hot color choices for 2004 include celery green, creamery yellow and pantry white. Stainless and black remain the top two choices for appliances and dark wood-toned cabinets remain popular, she reported. Lighting is increasingly becoming more important in kitchen design, Anderson said. Chandeliers and accent lighting are becoming part of the décor. Cooking grottos and decorative range hoods are becoming popular, she said, as it the “mantle look” with decorative corbels and raised panels. “Stucco and the use of other outside materials are coming into the kitchen,” Anderson said. She also noted that cabinet embellishments — including seeded or antique glass, edge and dart moldings, beadboard inserts in doors and turned or rope fluting — are becoming more popular. # Bathroom Designers Putting the Emphasis on Relaxation and Function While many view the home entertainment center as the key place in the house for home owners to kick back and unwind, leading bath designers at last month’s International Builders’ Show in Las Vegas told convention-goers that there is another contender for that distinction that is drawing increasing attention from home builders and buyers alike. “Our bathrooms represent the last vestige of private relaxation,” said Elizabeth Falconer, MIRM, president of Position by Design, a leading design firm based in Fort Worth, TX. Falconer added that today’s consumer expects warmth, comfort, convenience and luxury in bathrooms at every price point. “In luxury homes, the definite trend is towards his and her bathrooms,” she said. “We are going to see more and more degrees of separation as baby boomers get older.” Expounding on this trend, Wayne Berenbaum, a practicing architect for 30 years and owner of The Wayne Architectural Group based in Boca Raton, FL, noted that bathrooms can be functional and exciting at any price and size. “Baths tend to be bigger and geared to relaxation as well as efficiency,” he said. “Showers are becoming larger, with multiple shower heads, and we are going from separate vanities to his and her master baths that are virtually separated by a tub in the middle and a shower in the center.” Another trend is to use furniture for vanities instead of pedestal sinks and cabinets, Berenbaum added. Falconer noted that cost-effective design measures that “add pizzazz” include granite tiles, a mirror placed atop another mirror on the medicine cabinet and glass block partitioning between the bath and the toilet. In high-end homes, he said that it is becoming increasingly popular to place less furniture in the master baths and to use the closet bath areas as a storage space. Microwaves and warming drawers are also being used to heat up towels. With millions of the baby boomer population entering their 50s, Glen Boudreaux, owner of the Dallas interior design firm Glen Boudreaux & Associates, said more consumers are seeking universal designs for their bathrooms that are attuned to health, safety and welfare issues. Examples include doorways that are at least three feet wide, lever handles in place of knobs, tiles with mats or slight textures on the flooring, grab bars that look like towel racks, adjustable shower heads on vertical bars and roll-in showers with seats. “These designs don’t have to be ugly or institutional. And they don’t cost a lot of money,” he said. Boudreaux added that they are good for buyers of all ages and promote functionality, ease of mobility and a safer environment. # Architects Suggest Strategies for Competing With Large-Volume Builders When it comes to home building firms, bigger doesn’t necessarily mean better. That was the message delivered during an educational seminar at last month’s International Builders’ Show in Las Vegas that focused on strategies for small-to-medium volume builders to compete with major developers. “The first rule of thumb: If you don’t know your competition, you can’t beat 'em,” said Quincy Johnson, MIRM, president and CEO of Quincy Johnson Architects, an award-winning architectural firm based in Boca Raton, FL. Noting that large companies often employ standardized floor plans and lack flexibility to adapt quickly to market demand, Johnson suggested that builders should offer dynamic design plans that stand out from the competition. He outlined these examples: Light and airy designs Defined foyers with class and style Curved walls, ceiling detail and mood lighting Long indoor/outdoor views from the foyer Islands, desks and butler’s pantry in all kitchens Dens should be convertible to bedrooms with baths Defined sitting area in all master baths/oversized closets Split two-car garage so that one bay has the option to be used as an office Echoing Johnson, Mike Rosen, president and CEO of Philadelphia-based Mike Rosen Architects, said it is important to “know thy enemy. Know who you are competing against, and try to find vulnerabilities that you can latch on to and take advantage of.” Many large firms employ a cumbersome chain of command, he said, and smaller companies can take advantage of this to act quickly and decisively to enact changes that will benefit their market. “With many large, in-house corporate designers, you frequently get a bunch of ‘yes’ men who get stale after a while. They tend to be followers, not leaders. You can bring in new technologies and concepts much quicker. Experiment with buyers to see what they like. Big firms can’t do that,” said Rosen. Rosen also noted that large builders are not always quick to act in meeting customer needs, and suggested this is an area for their smaller competitors to take advantage of. “It is much better for a small builder to take care of several customer problems quickly rather than (have customers) wait forever (for a big builder) to take care of one problem,” he said. On the issue of service, Barbara Anderson, president of Preferred Designs in Kennett Square, PA, said that the personal touch can go a long way in landing a sale. “Be you, be seen, you’re the most valuable asset,” she told builders. “Go on site, introduce yourself, shake a few hands and be proud of who you are and what you build.” Emphasizing that “quality sells,” Anderson said that it is imperative to keep a clean job site and that homes under construction should be “broom cleaned” prior to the weekend. Builders should provide “memory points” to set themselves apart from their larger competitors, Anderson suggested, and they should offer such items as“retro” bath packages, granite as standard on kitchen islands and “bonus spaces that sizzles,” such as wine cellars or well-crafted media rooms. Reviewing a number of successful developments where small builders were able to compete effectively with their larger counterparts, Mike Kephart, president of Denver-based Kephart Architects, noted several strategies were deployed, depending upon the type of community. In one Denver development, Kephart Architects created private enclosed courtyards in the builder’s townhouses to achieve quality outdoor privacy in high-density living. “Buyers recognized the value and the 120-unit development sold out in two years in the face of big builder competition,” said Kephart. Citing another example, Kephart noted a win-win situation where the large builder was selling townhomes at $130,000 to $150,000 “with a highly repetitive, stripped-down design.”Kephart designed a higher quality multifamily development that offered homes at $194,000 to $230,000. Both the high-end and more affordable homes subsequently sold well. # A Well-Planned Design Studio Can Lead to Satisfied Customers Today’s active adult buyers demand choices, especially on the major items. But they also want the builder/developer to keep the processes simple and convenient. So some large national builders are creating design studios to simplify the process. They believe the ideal way to help buyers make their decisions is to centralize the choices in one location, under one roof rather than in various showrooms spread across town. A beautifully decorated, well laid-out design studio allows buyers to touch surfaces and see the actual patterns and designs put together. This helps enhance the selection process by minimizing the guesswork. In the end, it can make the process more endurable, even enjoyable, for buyers. Some of the items featured in a design studio may include the following: Alarm and intercom systems Appliance options Cabinet selections and finishes Central vacuum system Ceramic tile options Corian® and granite slab options Custom built-ins Fireplace faces Floor coverings Home theaters Mirrored doors and glass tub/shower enclosures Water treatment systems Window coverings A Knowledgeable Design Consultant Can Enhance the Buying Decision “It’s costing a lot more than we were prepared to spend.” Or, “We’re getting too much pressure to decide.” The selection process literally can be a “make-or-break” point in the actual sale. Just as the sales associate must do during the selling process, the design consultant must be patient, try to understand the customer’s individual needs and, most importantly, build value into every selection. Doing so will help the buyer overcome the price hurdle and build satisfaction into the process. The customer wants to know he or she is making a good choice, and the design consultant’s reassurance can go a long way. On other hand, an unpleasant experience can do serious damage. If the design consultant simply rattles off a checklist of copious items and expects customers to make their decisions prior to the appointment, the results can be disastrous. I’ve seen many customers cancel their purchases when confronted by this approach. Kitchens and Master Baths Deserve Extra Attention It’s a smart idea to feature several choices in cabinet styles and stain colors in a design studio. The same holds true for color selections in granite or some other hard surface tops. Give your buyers the option to customize their countertops. A flashy backsplash also can be a treat. However, making a buyer decide where to place every electrical outlet in the kitchen can cause the equivalent of brain damage. Simply place an ample amount of space according to building codes and ask the electrician not to encroach on that splashy pattern that the design consultant created so carefully. After the kitchen, the master bath is the second most used area of the home. Therefore, another creative opportunity comes into play. Tile installation patterns and plumbing fixtures can add an element of luxury to any size or configuration. Master baths, powder rooms and guest baths can be extravagantly designed with intricate tile work of various shapes and colors or made simple and clean with basic cultured marble. Buyers are encouraged to continue the design they started in the front of the home and let it flow right into the bath areas. The number of boomerang children or live-in parents moving into homes has created a new trend that reconfigures the second bathroom into a bathroom suite off a second bedroom. Enlarging the bath area with a linen closet, extra cabinetry and a double-sink lavatory is a perfect fit for the child back home after college awaiting a job, the young couple saving up to purchase their own home or the parent who needs the daily care of a loved one. Flooring and Lighting Can Make a Personal Statement Flooring is another key area that buyers dwell upon before making a final decision. The design studio should include generous selections of grade, pattern, color and durability. One California design consultant noted that c olor is making a comeback, and in particular, coordinated carpet insets with deep-hued borders that define areas in the great room, dining room, etc. A design consultant’s knowledge and guidance of flooring can be helpful to the customer. Among the latest trends in hard surface flooring selections are porcelain tile and stone. The new porcelain styles are a blend of thoroughly modern designs, while providing an Old World look. Hard surfaces can evoke a timeworn yet sophisticated feeling throughout the home. And hardwood floors remain a popular choice for many active adult buyers. Lighting is a personal choice that makes a statement about who we are. Many active adult buyers want fixtures to complement their furnishings, sometimes by blending in or perhaps even standing out. Recessed lighting not only can brighten kitchens and baths, it can highlight special features throughout the home. Lighting fixture selections range from contemporary to mission style, with the latest trend being the Tommy Bahamas theme. While some customers still prefer the simple, polished brass look, many are turning to nickel or rough metal finishes. When available, these choices extend to the hardware of cabinets and doors. Don’t Forget the Outdoors and Other ‘Small’ Details The design consultant should devote time and consideration to outdoor living spaces as well. Whether a cozy patio area, a California-style loggia or a sprawling deck, this is where many owners want to spend time relaxing and reflecting. Fireplaces, built-in outdoor kitchen areas, spas, pools, fish ponds, water features or lap pools create an environment that is worthy of hours of careful planning. While active adult buyers can become frustrated when asked to place electrical outlets in the kitchen, they want to decide where to place telephone and cable outlets in the great room, study/library and media room. Many builders find that their buyers prefer group packages of pre-planned locations. However, some buyers have high-tech needs and may require flexibility if they are to be completely satisfied. Providing adequate outdoor electrical outlets that take into consideration exterior holiday décor is a plus. The goal of every builder and developer is to deliver what the customer wants. A well-equipped design studio staffed by qualified design consultations can make the difference. It can lead to satisfied customers — and a perfect survey score. Sharon Baker is the director of sales development with Scottsdale, AZ-based Shea Homes for Active Adults, which has six Trilogy resort communities in Arizona, southern and northern California and Washington state. Baker has 17 years experience in the real estate industry, including four years as a senior sales manager specializing in active adult communities in Del Webb’s Austin and Phoenix markets. Baker can be reached at 480-367-3724 or sharon.baker@sheahomes.com. This article appeared in the Winter 2004 issue of Seniors’ Housing News. Learn More About Seniors Housing Through the Seniors Housing Council To learn more about seniors housing, join the NAHB Seniors Housing Council. The council provides information, education, networking and recognition opportunities for its members and represents NAHB on seniors housing issues. For more details, e-mail Jeff Jenkins or call him at 800-368-5242 x8292. BuilderBooks.com Has Publications About Seniors Housing BuilderBooks.com offers a variety of publications about the seniors housing market. To view or purchase these publications, click here and type “seniors” in the search engine. 2004 Seniors Housing Symposium To learn more about the seniors housing market, plan to attend the 2004 Seniors Housing Symposium, Building for Boomers & Beyond in Chicago from April 14-16. The symposium will focus on the lifestyle component of 50+ seniors housing. # Seniors Housing Councils Open in Denver and Central Washington During last month’s International Builders’ Show in Las Vegas, the NAHB Seniors Housing Council’s Board of Trustees unanimously approved the formation of two new local Seniors Housing Councils in Denver and central Washington. This brings the number of councils to eight, with existing councils in Greater Atlanta, Maryland/National Capital (Washington, D.C.), Metro Harrisburg (PA), New England, New Jersey and Southern California. The Denver-area local SHC was formed by the Home Builders Association of Metro Denver to raise awareness of the burgeoning seniors housing market in Colorado. According to U.S. Census data, Colorado’s 55-74 population increased 27% from 1990 to 2000, the fourth-fastest in the country. “People may not realize it, but Colorado is a hotbed for seniors housing,” said Larry Armstrong, president of Retirement Living Inc. of Colorado and one of the organizers of the new local council. “Everywhere you look, there are aging baby boomers and seniors retiring here. The market is going to be huge over the next few decades.” Armstrong noted that the Senior Housing Council of the HBA of Metro Denver would try to work closely with local governments to create a more favorable environment for the seniors housing industry. “Our group will push to have local zoning ordinances that promote the development of age-qualified communities,” Armstrong said. “Active adult communities have a positive impact on the local economy and many other benefits. Our local Seniors Housing Council will try to spread the word.” The Denver local SHC also will provide education and networking opportunities for its members. Although the council is still in the organizational stage, it has already signed up more than 30 members. The Seniors Housing Council of Central Washington was formed by the HBA of Central Washington to serve seniors housing professionals in Yakima, Kittitas and Klickitat Counties. Mike Elliott, president/owner of Mike Elliott Construction and chair of the local council, said his council would emphasize the interests of local remodelers and small and mid-size builders. “A large community in our area is about 40-50 homes, so we will try to meet the needs of the little guys,” Elliott said. “We also want to promote remodeling for aging in place and the importance of universal design. Although many people move to active adult communities, a large number prefer to stay in their existing home as they get older.” Elliott anticipates that his three-county area will attract new active adult communities in the future. He feels it is important to educate builders about the opportunities that await them. “The seniors housing industry is extremely exciting,” said Elliott, noting that his local SHC has already signed up 17 new members. “There’s a lot of interest here in central Washington.” Local Seniors Housing Councils are valuable resources for industry professionals who serve the burgeoning 50+ market, providing unique opportunities to meet with others who are interested in seniors housing, share ideas and engage in strategic problem-solving. “Local SHCs promote an environment of mutual support among members — even competitors,” said Bonnie Solomon, vice president of retirement living services for Delmar Gardens Enterprises in St. Louis, and chair of the NAHB Seniors Housing Council. “It’s also the best place to go for information pertinent to your local market. As a member of a local Seniors Housing Council, you enjoy the same benefits as a member of the NAHB Seniors Housing Council and much more. It’s a great value.” To join the Senior Housing Council of the HBA of Metro Denver, e-mail Michelle Bynum or call her at 303-778-1400 x205. For more information on the Seniors Housing Council of Central Washington, e-mail Lola Franklin or call her at 509-454-4006. To learn how to start a local Seniors Housing Council in your area, contact Jeff Jenkins, NAHB Seniors Housing Council, at 800-368-5242 x8292. For more information on the NAHB Seniors Housing Council, click here. BuilderBooks.com Has Publications About Seniors Housing BuilderBooks.com offers a variety of publications about the seniors housing market. To view or purchase these publications, click here and type “seniors” in the search engine. 2004 Seniors Housing Symposium To learn more about the seniors housing market, plan to attend the 2004 Seniors Housing Symposium, Building for Boomers & Beyond in Chicago from April 14-16. The symposium will focus on the lifestyle component of 50+ seniors housing. # A Professional Designation From NAHB Is Good for Your Business By Greg Miedema, CGR, CAPS You may ask yourself, why do I need to spend my time and money on a designation. Or perhaps, what’s in it for me? Like many industries, the home building and remodeling industry has various associations offering accreditation for continuing education and training. But is it worth the time and expense to pursue them? There are several angles from which the rewards can be viewed: marketing, professional development, business development and personal development are just a few. From a personal and professional development standpoint, great value can be realized by attending the classes and seminars in pursuit of any designation. Sitting with like-minded professionals with similar goals, in a focused presentation designed to help you with your business pursuits, has real value. It’s a time to focus and exchange ideas with other folks with similar business interests and similar backgrounds. That idea exchange and thought-provoking atmosphere alone is worth the time and money of participating. You can’t get that from a cassette tape! From a business standpoint, the advantages and rewards are similar: the knowledge you acquire in a specific area of business helps give you an edge over your competitors. You have the opportunity to hear it from someone who’s “been there, done that,” to engage in a one-on-one dialogue, to ask specific questions and hear examples that can be applied to your business and to establish information resources you can consult in the future. The relationships you form while pursuing a designation can help you continue in your business endeavors. I believe the value of networking is one of the most underestimated advantages of participating in the activities of your home builders association. The marketing opportunities are boundless. Every businessperson recognizes the need to leverage any investment in time or money for a maximum return. You can use your new credentials as a tool to demonstrate your expertise in a particular area, to express your commitment to the industry, to capitalize on the recognition you receive and more. You can now be the voice of an authoritative expert, and may very well find yourself fielding calls and questions from magazines, newspapers, civic groups or just curious consumers. All of that can help you establish credibility. All in all, the value of earning a designation goes far beyond the day or two you spend in the classroom. It’s the personal growth, the professional knowledge and expertise, the networking that often lasts for an entire career and the satisfaction that you’ve taken steps to improve your performance. It’s no small coincidence that when you read success stories, or read trade publications, that the people who are featured there always seem to have some initials after their name, a designation indicative of their business success. In recognition of this and much more, NAHB has announced that February is “National Designation Month.” Watch NAHB’s Web site for special events and a listing of classes. By educating — and continuing to educate — its members, NAHB works hard to assure its own continued success and excellence. Greg Miedema, CGR, CAPS, is president of Dakota Builders in Tucson, AZ. He is chair and founder of his local Remodelors™ Council, a member of the NAHB Remodelors™ Council Board of Trustees and currently serves as the chairman of the Remodelors™ Council Public Affairs Committee. The Southern Arizona Home Builders Association (SAHBA) has named Dakota Builders, Inc. Remodelor of the Year in 1998, 1999 and 2000. For more information, send him an e-mail. BuilderBooks.com Offers Publications for Remodelers BuilderBooks.com offers a variety of publications about remodeling. To view or puchase these publications online, click here, or call 800-223-2665 to order by phone. University of Housing Offers Courses and Designation Programs The NAHB University of Housing offers a variety of business management courses and professional designation programs that set builders and remodelers apart from the competition. For a complete list of current offerings, click here. Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts. # Concrete Home Building Council Introduced at Builders’ Show Officially launched on Jan. 1, the formation of the Building Systems Councils Concrete Home Building Council (CHBC) was recognized at the NAHB Board of Directors meeting during last month’s International Builders’ Show in Las Vegas. Dan Harrington, chairman of the Portland Cement Association (PCA), joined NAHB First Vice President David Wilson on stage to present a check for $150,000 to provide seed money to inaugurate the new council. Other partners of the new council include the Insulated Concrete Forms Association, the Concrete Foundations Association and the Precast/Prestressed Concrete Institute. The Concrete Home Building Council held its first meeting during the Builders’ Show, voting on its leadership structure and outlining programs and services for its first year. The council also sponsored an educational session providing an introduction to Insulated Concrete Form technology. Membership in the Concrete Home Building Council is open to cement and concrete producers, as well as builders. To join, e-mail the Building Systems Councils or call 800-368-5242 x8676. To see first-hand one of the larger cement manufacturers in the country, attend the Modular and Panelized Building Systems Councils’ 2004 Plant Tour. Taking place in South Bend, IN from May 23-25, the tour will include stops at a variety of modular and panelized manufacturing facilities and at Aggregate Industries, the nation’s fifth largest producer of ready-mixed concrete. Photo by Oscar and Associates # HBI Job Corps Graduates Honored at NAHB Board Meeting The housing industry’s highest awards for achievement in training were presented to two Home Builders Institute (HBI) plumbing graduates during last month’s International Builders’ Show in Las Vegas. In a ceremony at the NAHB Board of Directors meeting, 2003 NAHB President Kent Conine presented the “HBI Student of the Year” award to Lenord Fobb, Jr., owner of Fobb’s Affordable Plumbing Service in Garland, TX, a business he runs with his wife, Travona. Former NAHB President Shirley Wiseman Lach presented the “Shirley Wiseman Lach Award for Exceptional Promise” to Starr Delgado, an HBI plumbing instructor at the Westover Job Corps Center in Worcester, MA. Fobb enrolled in the HBI plumbing program at the North Texas Job Corps Center in McKinney, TX, in 1997. In only eight months, he was noted as the “Most Improved Plumber of the Month” and went on to earn the distinction of being the “Most Outstanding Plumber of the Month.” Today, at age 25, Fobb is a master plumber with his own business. “I take pride in the quality of service that we offer,” he said in an interview with the Dallas Morning News. “When we get more business, I will hire more people. I see this business as being one of the largest in Texas.” The father of two sons, Fobb also serves as assistant minister at the Greater Stone Baptist Church. Delgado enrolled in HBI’s plumbing program at the Grafton Job Corps Center in North Grafton, MA, leaving behind forever a life of gangs and dead-end jobs. During her 12 months in Job Corps, she was elected president of the student government, worked as a staff assistant and was featured as a “rising star” in the local newspaper. At age 26, she has returned to HBI, working as a plumbing teacher at the Westover Job Corps Center, where she is able to share her craft with other young people also looking for a second chance. The mother of a four-year-old daughter, she continues to attend evening classes toward earning a Journey level license. Photo by Oscar and Associates # Programs Address Shortages of Skilled Construction Workers To help alleviate the shortage of skilled construction workers and to encourage more students to consider a career in housing, a group of Florida home builders has instituted a hands-on program at a local high school that introduces students to the breadth of professional, technical and craft careers in the residential construction industry. Speaking at last month’s International Builders’ Show in Las Vegas, David Ellis, executive vice president of the Collier Building Industry Association in Naples, FL, explained how the BIA established an education/industry partnership with an area high school that enables students to gain academic enrichment, practical experience, career awareness and ultimately, access to employment opportunities. “Our challenge was to figure out how to improve the industry image with the students,” said Ellis. “We integrated a curriculum directly in the classroom so that students could begin seeing the connections between their studies and real-world activities and occupations.” With the help of nearly two dozen HBA members who volunteered their time and materials, a 5,400 square-foot lab was constructed at the school to enable students to engage in small masonry, plumbing and electrical projects. Playhouses were built and sold, and the proceeds were funneled back to scholarship programs for the students. As the students go through the program, local builders offer summer pre-apprenticeship jobs followed by an opportunity to enter an apprenticeship program after graduation. Engineering and technology internships are also available for students seeking to move on to college. “This has let the students see that home building is a diversified field that offers plenty of opportunity. We are energizing a workforce that will come into our industry,” said Ellis. “As an added bonus, it has also done wonders to help our industry’s image in the community.” Building on the program’s success, Ellis said that the BIA is adding a second program at another local high school that is projected to accommodate 150 students. According to Carolee Mills, vice president of workforce development at the Home Builders Institute (HBI), more than 150 occupations — in crafts, technology and business — are required to build a home. “There were 6.7 million workers in our industry in 2001 and we will need an additional 1.5 million workers by 2010 just to sustain the productivity that we have today,” she said. HBI, through Job Corps and other programs, trains 3,000 to 5,000 new workers annually. To help develop the next generation of residential construction employees, Steve Kramer, HBI’s vice president of marketing, said the organization has developed a Residential Construction Academy Series of textbooks and CD-Roms covering crafts, trades, carpentry, electrical principles, home wiring and more. The information is being distributed to high schools, vocational schools and two-year colleges. In a related area aimed at providing worker training to improve the bottom line, Paul Mashburn, president of Viking Builders Inc. in Winter Park, FL, described how the Residential Construction Superintendent (RSC) designation can benefit current site personnel who want to excel in this position. The program was developed by HBI and the Florida Home Builders Association, and has attracted nearly 2,000 participants over the past year. Superintendents who go through the program learn how to improve planning and scheduling skills to increase profits, effectiveness and on-time deliveries. The classes also cover customer service and home owner relations, detail how to protect safety and security on the job site, show how to enforce code compliance at the work site and lay out successful recruitment strategies for subcontractors and employees. For an updated listing of RSC designation courses and locations, click here. # Awards Recognize Achievement in Sales and Marketing From architectural achievements to interior merchandising, the year’s best in residential real estate sales, marketing and design were recognized last month at the 23rd Annual National Sales and Marketing Awards Gala, which was held in conjunction with the International Builders’ Show in Las Vegas. Hosted by the NAHB National Sales and Marketing Council (NSMC), the awards, known as “The Nationals,” attracted more than 1,000 building industry professionals. “These awards highlight the outstanding achievements of sales and marketing professionals around the country,” said Michael Copp, executive director of NSMC. “This event exemplifies the innovation that’s driving future trends within our industry.” The Nationals recognizes exceptional new home sales and marketing efforts and is the country’s largest established new home sales and marketing competition. The ceremony also honors “Legends of Residential Marketing” — builders and marketers who stand apart as innovative leaders in the industry. This year’s honored winners from a diverse field of more than 1,100 entries in 51 categories. A geographically diverse panel of marketing professionals, builders, architects, consultants, trade publishers and others who represent disciplines contributing to new home sales and marketing made their decisions over a three-day period. A few of top award winners are highlighted below.For a complete list of Gold, Silver and Regional winners and additional details and history of the event, click here. Community of the Year Gold Awards Attached Community of the Year — Urban: Metropolis by Wood Partners/The Novare Group, Atlanta Attached Community of the Year — Suburban: The Strand by Brookfield Homes in Newport Beach, CA Detached Community of the Year priced under $500,000: The Villas by Christopher Homes, Las Vegas Detached Community of the Year priced over $500,000: Fiore by Pardee Homes, Irvine, CA Individual Achievement Honors Marketing Director of the Year: Robert Adams of Park Square Homes, Orlando Sales Manager of the Year: Dave Harding of Western Pacific Housing, Los Angeles Sales Person of the Year: Kelly R. Lucente of Ryland Homes, Eden Prairie, MN. Rookie Sales Person of the Year: Brett Grantham of D.R. Horton, Portland, OR Legends Builder Legend: Robert Strudler, vice chairman and CEO of Lennar Associate Legend: Andrew Greenman, founder and CEO of The Greenman Group Outstanding Regional Sales and Marketing Council Under 350 members: Sales & Marketing Council of the Home Builders Association of Portage & Summit Counties, Akron, OH Over 350 members: Triangle Sales & Marketing Council, Raleigh, NC Bill Molster Award Ed Dunnavant, MIRM, American METRO/STUDY Corp. # Program Provides Builders With Expertise on Electronic Systems Technology AVAD, LLC, the country’s pre-eminent electronics distribution company, introduced its newest program — Dealer to Builder (D2B) — during last month’s International Builders’ Show 2004 in Las Vegas. The program is designed to connect AVAD’s qualified dealers with builders across the country who want to offer their customers such technologically advanced products as flat-panel video displays, 5.1 surround sound and broadband Intenet access. Builders who enroll in the program are connected to their nearest Dealer-to-Builder-certified firm, which works directly with the builder to equip homes. AVAD is actively certifiying electronic systems contractors (ESCs) to meet all builder needs. Pre-designed system packages are available that match each type of home that the builder offers. D2B contractors are certified by AVAD at two levels. At the Required level, installers are certified to handle home theater, distributed audio and video, lighting control and structured wiring. Within a year of certification, they must add central vacuum, telephone systems or home networking. Additionally, Required level dealers must have at least one CEDIA Level I-certified installer. Contractors achieving Preferred status are qualified in all seven tech categories, and must have at least half their staff certified at CEDIA Level I, plus at least one Level II-certified installer. Contractors certified at either level are active CEDIA members, and have completed additional courses designed to make partnering with builder firms a seamless process. All participating ESCs also complete AVAD’s “Basic Training,” which covers accounting disciplines, licensing, permits, insurance and more. In addition, AVAD’s selling course, “Sales Staff Training” teaches contractors the specifics of effectively communicating with builder clients. AVAD’s comprehensive Model Home Program trains builders’ sales staffs and provides marketing materials such as brochures, point-of-sale displays and informational videos and DVDs potential buyers can take with them. AVAD is now in the process of training dealers and interviewing prospective builders, and the program is scheduled to be fully launched on April 1. To request more information, click here, or call 866.FOR.AVAD. Headquartered in Fort Lauderdale, FL, AVAD is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB. This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page. # Sears Contract Sales Signs on as NAHB Exclusive Membership Sponsor Signing on as NAHB’s first-ever Exclusive Membership Sponsor, Sears Contract Sales will be more than tripling the sponsorship dollars it has contributed annually since 1991 and will play an integral role in strengthening the association’s membership and associate member programs. The partnership was made official during last month’s International Builders’ Show in Las Vegas. The Sears sponsorship will enable NAHB to boost membership benefits, including the implementation of an official membership card, new opportunities for member recognition and new communications designed to help members get the most out of their membership. “Having Sears Contract Sales on board as our Official Membership Sponsor is a great opportunity for both of us,” said NAHB President Bobby Rayburn. “Their involvement will enable us to implement value-added programs for our members at the local level and at the same time demonstrate to home builders across the nation that Sears Contract Sales is committed to the future of our industry.” For the past 12 years, Sears Contract Sales has sponsored NAHB’s National Membership Day campaign, a grassroots member-recruitment effort that occurs each spring. The Sears sponsorship for 2004 will provide financial backing for National Membership Day on April 26 and a host of other activities serving current members and local associations. A portion of the sponsorship will also be directed toward gathering information from the membership that will guide NAHB in its continued efforts to improve services as the needs of its fast-growing and diverse membership base evolve. As a long-standing and active member of NAHB with more than 200 account managers participating in their local home builders associations, Sears Contract Sales is a well-positioned partner for NAHB. “This sponsorship reinforces Sears Contract Sales’ commitment at the grass roots, regional and national levels of NAHB,” said Bill Collins, Sears’ vice president/general manager of contract sales, referring to the three-for-one membership each of NAHB’s 215,000 members have in their local, state and national associations. For more information about the 2004 Sears Contract Sales Sponsorship, or on any of NAHB’s membership programs, e-mail Emily Fitzsimmons or call her at 800-368-5242 x8354. Photo by Oscar and Associates # Washington Builders Recognized for Efforts on Behalf of the Disabled In recognition of its volunteer service on behalf of citizens with disabilities, the Master Builders Association (MBA) of King and Snohomish Counties received the 2004 Disability Initiative Award from NAHB and the National Organization on Disability (N.O.D.) during last month’s International Builders’ Show in Las Vegas. Through a grant from Aetna, Inc., the association received a $1,000 award. The annual award is administered by N.O.D.’s National Partnership Program. The association was honored for its “Rampathon 2003,” a one-day project last May in which its members constructed 21 wheelchair ramps free of charge for low-income, disabled citizens in the Bellevue, WA, area. Members of the MBA Remodelors™ Council served as ramp captains, and last year’s event turned out to be the most successful yet in the program’s 10-year history. The goal of the Rampathons is to reconnect low-income disabled citizens to their neighborhoods and work places. Ramp recipients rely on the ramps as the primary access to their homes. “The Master Builders Association of King and Snohomish Counties has demonstrated a tireless dedication to the inclusion of citizens with disabilities who make their homes in those counties,” said Jerry Howard, NAHB’s executive vice president and CEO. “I am proud to acknowledge their accomplishment of this monumental task with this year’s NAHB/N.O.D. Disability Initiative Award.” The National Organization on Disability promotes the full participation of America’s 49 million men, women and children with disabilities in all aspects of life. Founded in 1982, N.O.D. is the only nationwide network organization concerned with all disabilities, all age groups and all disability issues. For more information about N.O.D., click here or call 202-293-5960. Aetna is one of the nation’s leading providers of health care, dental, pharmacy, group life, disability and long-term care products, serving more than 13.0 million medical members, 11.3 million dental members and 11.7 million group insurance customers, as of June 30, 2003. # Mixed-Use Project to Transform Trenton Inner City Neighborhood A New York/New Jersey-based developer was given approval to redevelop a section of an inner city neighborhood in Trenton, NJ. The mixed-use development, the largest of its kind within Trenton, will include 475 homes and apartments and commercial development. Leewood Village Center (LVC) was granted development rights on Jan. 7 to redevelop a 22-acre neighborhood in the city’s South Ward. The project will include 355 townhomes, which will be owner-occupied, and approximately 120 apartments. According to Michael Fink, president and CEO of LVC, approximately 80% of the townhomes will be market-rate, with the remaining 20% being affordable housing. “The community will enable people who otherwise could not afford to purchase their own homes to now be able to afford the American Dream,” said Fink. “Their children, who were previously living in tight conditions, will soon be living in an environment that will help get them to think about becoming a doctor or lawyer or other possibilities.” LVC is owned by Leewood Real Estate, a New York-based company that has redeveloped communities in once notorious inner city neighborhoods such as For Apache in the Bronx and Trenton’s Battle Monument area. Fink said the project expects to break ground in 12-15 months and will have a five-year build-out. # Help Build This Year’s Family Build Home for a Mother of Three Volunteers are needed to help build this year’s Family Build home for a mother of three who works as a school security officer in Washington, D.C. Family Build, in conjunction with DC Habitat for Humanity, will be conducted from April 24-29 during the NAHB Spring Board of Directors meeting, and members and theirs spouses are encouraged to help for as many days as they can. This is the second year that NAHB has conducted Family Build. Last year, the Seniors Officers’ wives, several area members and their spouses, a past NAHB CEO and Home Builders Institute Job Corps students helped build four homes in the Washington D.C. suburb of Forest Glen, including a home for the Ovalles family, who helped build their own home. Transportation will be provided to and from the job site. Lunch and t-shirts will also be provided. No building experience is required. There will be tasks for all job levels, building skills and abilities. For more information or to volunteer, click here or contact Shari Smith at 800-368-5242 x8308. Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts. # California Executive Recruiter Named NAHB Associate of the Year Lee Terry of Lee Terry & Associates in San Mateo, CA, has been named the 2003 NAHB Associate of the Year. The award is NAHB’s highest honor to an associate member in recognition of exemplary association service, industry accomplishments and civic responsibility. 2003 NAHB President Kent Conine presented the award to Terry at the Jan. 21 Board of Directors meeting during The International Builders’ Show in Las Vegas. Terry was chosen from candidates nominated by their states to represent their associate membership. A panel of five judges reviewed and scored the nominations, selecting the five top candidates for induction into the NAHB Society of Honored Associates, and naming Terry, as the highest-scoring candidate, NAHB Associate of the Year. The other associate members who were inducted into the Society of Honored Associates are: Tom Board, O.C. Cluss Lumber Company, Fairmont, WV; James Goodwin, Complete Home Concepts, North Kansas City, MO; Harlan Holsing, Saginaw Bay Underwriters, Bay City, MI; and Robert David Sanders, Sanders Engineering, Inc., Bixby, OK. Terry has served on the Home Builders Association of Northern California's Board of Directors for six years and has chaired many of its committees. She has also been named the HBA of Northern California’s Spike of the Year, Associate of the Year and Service Provider of the Year. Terry has twice been president of the California’s Women’s Council and she is a trustee of the California Building Industry Foundation. She is the director of her state’s Coalition for Construction in the Classroom and was honored by a Senate Resolution commending her efforts on behalf of the building industry. In 2001, Terry was inducted into the Society of Honored Associates. She is the chair of NAHB’s Women’s Council and played a key role in the development of the council’s new magazine, “Building Women.” In 1998 the council named her “Woman of the Year.” She has served on NAHB’s Education Committee and Associate Members Committee, and is a member of BUILD-PAC’s Capitol Club. Terry is an executive recruiter specializing in recruiting executives and key personnel for the home building industry. A Certified Personnel Consultant and Certified Employment Specialist, she has received numerous awards for outstanding service from personnel industry associations and has written many articles on employment issues, labor shortages, workforce diversity and hiring techniques. # Calendar of Events
### DATE | ### EVENT | ### LOCATION
March 14-16, 2004 | National Green Building Conference | Austin, TX
March 21-23, 2004 | 2004 Log Home Councils President's Tour | Bangor, ME
March 28-30, 2004 | 2004 NAHB Multifamily Pillars of the Industry Conference & Awards | Palm Springs, CA
April 14-16, 2004 | Building for Boomers & Beyond: 2004 Seniors Housing Symposium | Chicago, IL
April 21, 2004 | Spring Construction Forecast Conference | Washington, DC
April 28, 2004 | NAHB Legislative Conference | Washington, DC
October 7-9, 2004 | The Remodelers' Show | Chicago, IL
October 27, 2004 | Fall Construction Forecast Conference | Washington, DC
October 31-November 3, 2004 | Building Systems Councils SHOWCASE | Austin, TX
November 4-6, 2004 | State & Local Government Affairs Conference | Biloxi, MS
November 12-14, 2004 | Custom Builders Symposium | Indian Wells, CA
To view more meetings & events information on the NAHB Web site, click here. Make Your Connection With www.nahb.org Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started. If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts.