Industry Information

April 25, 2008

New Heat Stress Rules Unnecessary, Very Expensive

Make Your Voice Heard on the New Heat Stress Rules from L&I

L&I continues to move forward with their new heat stress rules. The rule, which will become permanent once adopted by L&I, are extremely costly (especially to small business) and totally unnecessary.

This latest approach from L&I is yet again a solution in search of a problem—only .00311% of all injured worker claims statewide are related to heat stress.

The Small Business Economic Impact Statement prepared by L&I clearly indicates the proposed heat stress rule will be very costly, especially to small businesses. For a company with 20 employees, L&I estimates the cost to comply with this new rule could be more than $80,000 per year. Compliance costs for small businesses will be nearly five times the compliance costs for large companies.

Help us oppose these costly and unnecessary rules!!

Contact your state legislator and ask him or her to contact L&I Director Judy Schurke to express opposition to the heat stress rule.

Call or email Judy Schurke directly to express opposition.(scju235@lni.wa.gov, 360-902-4200)

Attend the Spokane public hearings to voice your concerns:

Date: May 1st
Location: Red Lion Hotel at the Park
Time: 1:00 pm

Read the Spokesman Review Editorial on the topic here.

April 22, 2008

Senate Adopts Amendment to Housing Bill to Extend Energy Efficiency Tax Incentives

The Senate recently passed a landmark housing stimulus bill that included an important amendment to extend a number of expired (or soon-to-expire) energy efficiency tax incentives for homes and multifamily buildings. 

Despite objections from some Senators who wanted to move the energy piece separately, Sen. Majority Leader Harry Reid (D-NV) moved for a vote on the bipartisan amendment, sponsored by Sen. Maria Cantwell (D-WA) and Sen. John Ensign (D-NV), as part of the broader housing bill.  With overwhelming bipartisan support, the Senate adopted the amendment by a margin of 88 to 8.  Although the House also recently passed a similar extension of energy tax incentives, the negotiating is far from over because of the continued disagreement over how to pay for them.  The Senate measure adopted does not include any tax offsets, already causing House Leaders to balk at it.

Notably, the amendment contains a number of extensions that NAHB has been working to pass for a number of months:

  1. Section 45L   –

    New Energy-Efficient Home Tax Credit.  The amendment extends the tax credit for an additional 2 years to Dec. 31, 2010.  It also modifies the credit to allow builders to occupy the residence themselves.

  2. Section 179D –

    Multifamily/Commercial Building Deduction.  The amendment extends the deduction through the end of 2009.  It also increases the amount from $0.60 per square foot to $0.75 for partial allowance and from $1.80 per square foot to $2.25 for full allowance.

  3. Section 25C –

    Energy Efficient Property Credit (Existing Homes).  The amendment extends the expired credit to the end of 2009.  It also adds a credit for residential biomass heating stoves (e.g., pellet stoves or wood stoves) that can achieve a 75% thermal efficiency rating.

NAHB will now work with coalition partners to gain support in the House for adoption of the Senate measure. 

If you have questions or need additional information, e-mail Elizabeth Odina at NAHB, or call her at 800-368-5242 x8570.

April 15, 2008

Gen Y Provides Hot Prospects for Urban-Styled Apartments

This is a continuation of our series on Generation Y and how they (or should I say, WE) will fundamentally change your business. A little foreshadowing... can you say 'New Marketing Department'?

There's something more than a little different about the 20-somethings of Generation Y who are lined up to generate the biggest burst of housing demand since members of the post-World War II baby boom generation, according to two market researchers and an architect appearing at the NAHB Multifamily Pillars of the Industry Conference on April 1-3 in Colorado Springs, Colo.

Stressing the difference of those in this bulging population group with even their most recent predecessors, James Chung, president of Reach Advisors , noted that “a 28-year-old today is dramatically different from how a 31-year-old today was three years ago.”

“Your staff needs to be tuned into this market,” Chung told an audience of professionals in the multifamily industry. His research finds that Generation Y can be distinguished in several ways:

  • Forty percent of Gen Y members are minorities, double the share of their parent's group, Chung said, and there is the expectation that even less integrated communities will show far greater diversity than in the past.
  • Gen Y'ers are not easily reached through mass media, e-mail is out and they tend to communicate by text messaging and through social Web sites, especially women, he said. The challenge for marketers, who are “salivating” over the potential of selling to this group is to reach the leaders who are most likely to spread the news about a particular housing project. The message must be something “that's so important that they need to share it with their friends,” Chung said, and “you have to have a script” to provide “signals” that will enable them to talk about the product.
  • They are “virtually intimate” and happy to “put their lives out for the world to see; privacy is not what they're looking for” and “visibility matters.”
  • They are “prematurely affluent,” with their spending habits higher than their earnings can support. For those from more affluent families in the top 25 percentile of household incomes, this means subsidies from their parents, which tend to diminish the farther they get from college and the nearer they are to their 30th birthday. They embrace luxury goods and the brands of their parents, and communicate with their parents a couple of times a day. When it comes to housing, Chung said, a few are looking for the best they can get and a quarter are looking for “a good place” but not denying themselves the means to live the lifestyle they want.
  • Minority members are advancing faster into high-paying jobs than their predecessors thanks to the strength of their school systems.
  • Members of Gen Y have managed to make a startling difference from previous generations in closing the income gap between men and women. At a time when women in the general population are earning only 80% as much as men, women in their 20s in cities with a white-collar, “knowledge-driven employment base” are making 100% to 120% as much, he said. The explanation is simple: more women than men are going to college, he said. Women account for a 59% share of today's undergraduate degrees and are receiving advanced degrees 1.5 times as much as men. “If this trend continues,” Chung predicted, “men will be relegated to the role of pets.”
  • They appear to be delaying marriage and parenthood and are spending more time as “unsettled” households. Single-women now account for 25% of first-time home buyers, he said, compared to a number in the single digits just five years ago and compared to a 9% share currently for single men.

<Keep Reeading>

April 14, 2008

New Heat Stress Rules - Spokesman Review Editorial

Question: Do these rules ($80,000 worth of rules) make any rational sense, or are they just another example of L&I run amok as they try to play overprotective parent to an industry that is inherently risky?

From the Spokesman Review, April 14th 2008

Heat rules face test Our View: Regulations sought for outdoor working conditions

If you go

The Spokane hearing on the Department of Labor and Industries' proposed heat stress rule will be at 1 p.m. on Thursday, May 1, at the Red Lion Hotel at the Park, 303 W. North River Drive.

April 14, 2008

A fter the endless winter of 2007-08, Inland Northwest residents will be slow to see a down side to the onset of warmer temperatures.

If there is an exception, though, it may be among farm and construction workers and others who labor outside in summer's broiling sun. And, in Washington, their employers.

Two years ago, after a Yakima-area farmworker died of heat stroke while chopping weeds in a hop field in July, it occurred to the state Department of Labor and Industries that the agency didn't have regulations in place to address outdoor working conditions that could lead to heat-related illnesses. Indoors, yes. Outdoors, no

Not coincidentally, the discovery of this oversight followed a move in California – where there recently had been four similar deaths – to adopt strict workplace regulations that demanded employee training, close monitoring of work-site temperatures and mitigating steps to protect against the health consequences of working in high temperatures.

To date, according to a spokeswoman for Labor and Industries, apparently sunny California and northern tier Washington are the only states to have undertaken this response.

Predictably, businesses affected by the proposed rules are protesting. The Building Industry Association of Washington calls them "ridiculously prescriptive and completely unnecessary."

Citing the state agency's own estimates, the construction association says compliance with the rules could cost a business with 20 employees more than $83,000 a year, plus another $50 a year per employee to train workers about such things as how to recognize the signs of heat stroke, and what to do about it if they do.

To put businesses' reaction in proper context, it's worth remembering that they are faced with a barrage of requirements to safeguard their workplaces against an infinite array of threats to employee health and safety. The goals may be reasonable, but the methods aren't always practical.

In the present case, the rules are triggered when temperatures reach a certain point – as low as 52 degrees on sites were workers wear vapor-barrier clothing. There must be sufficient drinking water on hand, there must be adequate shade or other cooling means, which might include anything from tarps to air-conditioned trailers.

The agency had emergency rules in place last summer, and now Labor and Industries wants to make them permanent, with some modifications. In making their case, officials note that heat stroke is to blame for at least four worker deaths in Washington in the past decade – the same number that occurred in California in a span of weeks before that state took regulatory action.

Even one such death is a tragedy, of course, and BIA's reaction may be a bit overwrought, but enactment of another layer of rules and regulations is no guarantee that other deaths will be prevented. In fact, the employer of the Yakima worker who died in 2005 was found by Labor and Industries to have been in violation of regulations already in place. That employer was fined $3,000, which was upheld on appeal.

Labor and Industries' current proposal is tentatively scheduled to be adopted on June 4, and put into effect on July 5. First, however, there will be public hearings, including one in Spokane on May 1. No doubt the agency will get an earful from affected businesses. Before this rule becomes permanent, the regulators must make a compelling case why it can be expected to save lives where existing regulations failed.

April 10, 2008

SHBA Apprenticeship Program Seeking New Instructor

The Spokane Home Builders Association Apprenticeship & Training program is currently accepting applications for a part-time ‘Residential Carpentry' instructor. Teaching experience valued.

Qualified applicants must have completed an approved Apprenticeship training program and have worked in the trade for a minimum of 10 years or have a B.A. degree in Construction Management.

For more information, click here.

April 04, 2008

County Announces Changes to Sales Tax Boundaries

Effective April 1, 2008, the Spokane County Public Transportation Benefit Area (PTBA) has revised the boundaries of the PTBA to reflect the Spokane Urban Growth boundary. With the revision of the boundary, the sales tax rate in specific areas of Spokane County has changed. This means your building project previously in the PTBA and subject to 8.6% sales tax, may now be subject to 8.0% sales tax as of April 1st. In a few areas of the county the tax rate has increased from 8.0% to 8.6%. The new boundaries are defined by maps on the Spokane County website http://www.spokanecounty.org/budget/taxes.asp . Wall size maps are also available for purchase by contacting Margaret Smith.

April 01, 2008

50+ Consumers Are Buying Into Green Technology

From simple energy-saving light bulbs to more costly and complex high-efficiency heating and cooling systems, 50+ home owners are more likely to equip their homes with the latest in energy-efficient technology than their younger peers, according to a recent survey focusing on green issues conducted by Rockbridge Associates , a market research firm based in Great Falls, Va., and the University of Maryland.

Not only do more seniors own these products, Rockbridge research analysts said, they also are more likely to want them.

The National Technology Readiness Survey, conducted annually since 1999 by Rockbridge Associates and the Robert H. Smith School of Business' Center for Excellence in Service at the University of Maryland, tracks beliefs about technology and key behaviors related to the Internet and environmental-related services. The survey measures consumers' technology readiness and identifies emerging trends.

The latest survey was conducted from September to November last year and sampled 1,025 people 18 and older, of which 405 respondents were 50 or older.


Source: National Technology Readiness Study, conducted by Rockbridge Associates, Inc. and the Center for Excellence in Service, Robert H. Smith School of Business, University of Maryland, December 2007

According to the survey, 50+ consumers were more likely to own, or want to own, energy-saving light bulbs, high-efficiency heating and cooling systems, programmable thermostats, eco-friendly homes and home weather stations than their younger counterparts.

The differences between the age groups “point to the desire among 50+ consumers for a more efficient, comfortable and convenient living environment,” said Dave Glantz, Rockbridge senior research director, adding that it is difficult to justify this interest solely in economic terms.

“While many 50+ consumers might be interested in this technology because of the long-term cost savings, it nevertheless costs more in the first place to purchase these more energy-efficient products, compared to conventional offerings,” Glantz said. “Beyond pricing considerations, it appears 50+ consumers are driven also by their more pronounced concern about the environment.”

<Keep Reading>

 

March 26, 2008

The Echo Effect - Generation Y Enters the Marketplace

A recent post on Generation Y and their real estate trends from NAHB was a huge hit. Below is another perspective from the REALTORS that just might help you connect with the newest generation of home buyers.

By Jessica Lautz, Senior Research Analyst

Real estate agents may wonder why they should care about the Generation Y age group, ages 18 to 30. These unique home buyers are the youngest of the home buying segment, and are the most likely to purchase a home in the next two years in comparison to any other age group.

So who are Generation Y home buyers? This group of home buyers has a median household income of $61,000. Fifty-six percent are married, 20 percent are single females, 10 percent are single males, and 13 percent are unmarried couples. Nineteen percent are a race other than white.

When last surveyed, 36 percent of these buyers found home through real estate agent, 35 percent found home on internet (higher than any other age category),  and 5 percent found home through home builder or other agent (lower than any other age category).

The Internet plays a large role for this home buying segment. The 18 to 30-year-old age group grew up with the Internet and were always familiar with computers as children. Four in 10 read blogs or use social networking Web sites at least a few times a week. They are more likely than any other age group to frequently use the internet to search for homes—77 percent. These buyers are also most likely to take action from Internet searches—76 percent drove by or viewed home, 60 percent walked through home viewed online, 26 percent requested more information.

The most likely reason for this segment to purchase a home is because of the desire to own a home of their own and establish a household (62 percent). Not only does this segment care about the affordability of a neighborhood where they are looking for a home, they also care about the quality of the neighborhood and whether it is convenient to their job.

More than any other age group, Generation Y is likely to find the real estate agent they used to purchase their home by either a personal contact that is or a referral by a friend, neighbor, or relative. In comparison to other age groups, the most important factors for their agent to have is honest and trustworthy, agent is friend or family member, and a good reputation. They want their agent to find the right home to purchase, help with price negotiation, and help with paperwork. Top benefits Generation Y found in their agent was the agent helped buyer understand the process, pointed out unnoticed features/faults with the property, and negotiated better sales contract terms.

March 20, 2008

Why Does Water Efficiency Matter in Homes?

Increasingly, home owners are realizing that water is not a limitless resource. With persistent droughts and slowly depleting ground water supplies occurring across the West, consumers are starting to rethink how they use water at home. And they should: at least 36 states are anticipating water shortages in the next five years, and several local municipalities (on the West Plains in particular) are already slowing development due to concerns over water supply.

As some of the biggest innovators in the home building industry, remodelers are uniquely qualified to help solve our country's growing water dilemma. There are more than 120 million homes in the United States. Considering that a family of four uses about 400 gallons of water every day, if you help your customers make a dent in their water use at home, both their pocketbooks and the environment will benefit.

Best of all, water-saving solutions can be easily incorporated into your remodeling business and help attract new clients. Claiming a piece of the green building marketplace — expected to be worth nearly $60 billion by 2010 — could be just a flush away.


The WaterSense
® Label - a New Tool

WaterSense, a partnership program sponsored by the U.S. Environmental Protection Agency (EPA), aims to make saving water just that simple. The program seeks to protect the future of our nation's water supply by promoting water efficiency and making it easy to identify high quality, water-saving products.

What this means for you as a remodeler is an easier way to find water-efficient plumbing fixtures that meet your clients' water savings and performance expectations: just look for the WaterSense label.

In general, WaterSense labeled products are at least 20 percent more efficient than conventional models but perform as well as or better than their conventional counterparts. You can be confident that these products won't result in call-backs because, in order to earn the label, they must be independently tested and certified to confirm they meet EPA's rigorous criteria. And with more than 125 models of high-efficiency toilets and 30 models of bathroom sink faucets or faucet accessories that have earned the WaterSense label so far, odds are good you'll be able to find an option to suit every job.

By incorporating WaterSense labeled products into your offerings, you'll fill a much-needed niche as a water-conscious remodeler and differentiate yourself to home owners. What's more, by offering a high-efficiency bathroom remodel with WaterSense labeled fixtures, you can help a home owner save more than 11,000 gallons and about $70 in water bills annually based upon national averages.

This article is based upon one written by Stephanie Thornton, of the EPA’s WaterSense Program. The NAHB Remodelers, also contributed information used in this article.

 

March 18, 2008

2007 BALA Home of the Year with Floorplan

Architects:
Looney Ricks Kiss Architects

Builder:
Haven Custom Homes

The 2007 Best in American Living Awards (BALA) Home of the Year , Tucker Bayou, is a modular cottage built as an empty-nester vacation home in WaterSound along the Florida panhandle.

Nestled among southern pine and fronting a golf course, the home is also the 2007 Southern Living magazine “Idea House.” Though designed and built as a cottage, the 3,544-square-foot house also works just as easily as a family home — with clear differentiation of public and private spaces.

A Home of Subtle Space Distinctions

Homes often distinguish public spaces from private spaces by having the private spaces on the second floor and reserving the public spaces for the first floor.

Tucker Bayou draws more subtly on these distinctions, beginning with its two entrances to the home. While the front elevation faces the golf course, it is accessible only by a private pathway that connects to the other homes in the area. The home's more public entrance, the one that most visitors use, is at the rear of the home where there is a car park area and an enclosed garden.

That entry through the garden area also helps define public and private spaces. From the garden, an entry hallway brings visitors through a gallery. There is also a private entry into the kitchen from a covered walkway and the rear porch.

Off the kitchen are a family work area that serves as a staging area for groceries and an adjacent utility area. Public spaces on the first floor include the kitchen, dining area and living room. Private spaces include the owner's suite and an exercise or study area. The master bedroom has a private entrance.

The children's bunkroom on the second floor offers a retreat for the children, giving the adults downstairs quiet time of their own. Two additional bedrooms and a media room upstairs also provide a guest getaway — when kids aren't occupying the bunks. 

The public versus private aspects fit with the way empty nesters use this house, according to architect J. Carson Looney, of Looney Ricks Kiss Architects of Memphis.

“It's a lot of what we see in the panhandle region,” he said. “Homes may blow you away by what's inside. But there is an overwhelming desire to be understated from the street. Big developments (in the area) don't sustain value or achieve the price point per foot.”

Blending in With Its Environment

The cottage fits its environment with ease, both standing out from the forest setting and blending in comfortably. The roof's shape, with its strong cross gable, accommodates a lot of space, said the architect, but the shape also enables the house to fit into its elegant location.

A Big Home or a Cottage?

Nowhere is that understated nature of Tucker Bayou more obvious than the seeming contradiction of it being a 3,544 square-foot home and a cottage.

The home reads as an intimate space with human-scale rooms that allow people to feel relaxed and welcome in the environment. The architects achieved this by making the roof line seem smaller while delivering more space within the home.

The interior design elements also play to the feeling of the cottage. In particular, the palette reflects a quiet life and the bead-board walls, coffered ceilings and pine floor present a pastiche of cottage life that fits the empty nester vacation lifestyle.

The BALA awards, the nation's foremost residential design competition, are co-sponsored by Professional Builder  magazine and NAHB.

 

First floor
Click for larger image
.

Photos by Jack Gardner Photography

See more photos of this house here.