Making a - Tidewater Builders Association

T h e Ti d e w a t e r
The official magazine of Tidewater Builders Association
June 2009 Vol. 56, Number 5
Making a
Splash
Spring 2010
Homearama
at Founders Pointe
Who is renting
in today’s market?
Members swing it out
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HOME SPA
The Tidewater
June 2009 Vol. 56, Number 5
The mission of Tidewater Builders Association is to
improve the climate for affordable housing; promote
the growth and development of the shelter industry;
promote excellence and professionalism among members through education and networking opportunities;
and support and enhance the community through
charitable projects.
Joel Backstrom tees off as
SENCON teammates, from
left to right, Guy Sorensen,
Jason Hawks and Brendon
Roark watch on.
OFFICERS: Pete A. Kotarides, president; William H.
Halprin, vice president; James E. Jackson, associate vice president; Charles J. Miller II, treasurer; S.L.
“Sam” Cohen, secretary; Steven E. Lawson, appointee; Edward R. Sadler, immediate past president
BUILDER DIRECTORS: Richard L. “Tuck” Bowie, Scott
G. Brooker, Christopher J. Ettel, Dennis M. Graf, Pete O.
Kotarides, Steven E. Lawson, Lucky C. Peterson, Stephen B. Quick IV
ASSOCIATE DIRECTORS: G. Robert Aston Jr., J. Gregory Dodd, Thomas W. Dye, Scott M. Gandy, Brenda K.
Reid, Samuel G. Scott, H. Mac Weaver II, Edward O.
Yoder
p. 14
Features
4
Reserve your spot for TBA’s first
spring Homearama
It’s getting competitive out there
Managing editor............................... Mary Prier, APR
6
Editor.......................................................Sara Steil
DIRECTORS EMERITI: Edward P. Brogan, William J.
Fanney, Richard D. Guy, Doyle E. Hull, Frederick J. Napolitano, Richard E. Olivieri, John H. Peterson Jr., The
Honorable Owen B. Pickett, Julian Rashkind, Stanley
Waranch, Howard M. Weisberg, Wendell A. White
CHIEF EXECUTIVE OFFICER: Channing A.
Pfeiffer
Advertising sales....................................Kim Powers
Production coordinator........................ Stella Council
Adviser............................................ Sandra Amidon
Graphic Artist.................................... Diane Trumbull
Copyright: 2009; all rights reserved. No permission to reprint unless expressly given by Tidewater Builders Association. The Tidewater Builder is
published for all TBA member firms through the $15 subscription price,
which is included in the annual membership fee. Opinions expressed by
contributing columnist are not necessarily those of this publication.
The Tidewater Builder is published monthly, January through
December, by Tidewater Builders Association, located at
2117 Smith Ave., Chesapeake, VA 23320. Editorial deadline is 5 p.m. on the 1st of the month preceding publication.
Advertising deadline for copy and insertion order is p.m. on
the 10th and for camera-ready ads, 5 p.m. on the 15th of
the month preceding publication. All advertising is subject to
current rates, copies of which can be obtained from the Special Events/Membership/Marketing Division, 420-2434. The
newspaper reserves the right to determine the suitability of
any advertising or editorial copy, and all real estate advertising is subject to the Federal Fair Housing Act of 1968, which
makes it illegal to advertise and preference, limitation or
discrimination based on race, color, religion, sex, handicap,
familial status or national origin, or an intention to make any
such preference, limitation or discrimination.
TBA is looking for builders to showcase their work in Isle of Wight’s Founders Pointe, tentatively scheduled for April 17-May 2, 2010.
The multi-family housing community is getting back to basics in today’s renter-
driven market – and it appears to be working.
11 Education is the key to survival
Combating hesitant buyers starts with curbing their fears through education,
former TBA president Larry A. Sancilio tells builders.
Departments
2
President’s Pen
19
Advertiser’s Index
5
Headliners
23 Shop Talk
9
Builder Services
Success Story
26
Big Pic
27
Spike
12
Counsel’s Insights
28
Events Calendar
16
Shades of Green
Membership Update
About the cover: Founders Pointe, which will host TBA’s first spring Homearama in 2010, already boasts a $2 million resort-style clubhouse with swimming pool, waterslide, volleyball court and children’s playground.
June 2009
1
President’s Pen
Builders “Stayin’ Alive” in 2009
O
attached products under $300,000, where absorption is still
n May 14, 2009, we celebrated the end of the
in the 10 to 20-month range. This group and the detached
recession at the Builder Breakfast in the TBA
resales under $350,000 are where most of the increased foreboardroom. If it took the government more
closure activity is occurring.
than one year to announce the beginning of
Conversely, attached new construction under $300,000
the recession, you can’t blame us for wanting to declare the
reflects a seller’s market, with a 1.6 to four-month supply.
end of it as soon as possible.
And, as you might expect,
The theme of the morning
higher-end homes are still
was “Stayin’ Alive,” a song
taking longer to sell.
representing the ’70s, a deVan also reported that one
cade that up until now, many
year ago, we could expect
believe had the worst econone contract for every 33 site
omy since the Depression.
visitors — a ratio that is now
If our economy survived the
one to 15. This means our
’70s, we can get through this,
lookers are twice as likely to
right?
become a buyer this year.
The goal was to present
Our other panelists adbuilders with strategies and
dressed ongoing realities of
encouragement to keep going
the market and offered this
until we see better days.
Builder Breakfast panelist are, from left, Jeff Ainslie, Ainslie Group; Van
Those days may be sooner Rose, Rose and Womble Enterprises; Nathan Olansen, Williams Mullen; advice:
rather than later, according Grigsby Scifres, Williams Mullen; and Larry Hill of L.R. Hill Custom Homes. • Negotiate alternatives with lenders in person. Come to the data presented by Van
with a written plan. If you
Rose, president of Rose and
come forward and deal with issues head-on, you’ll emerge
Womble Enterprises. Van was one of five panelists offering
with your credibility and integrity intact.
their insights and advice.
• Take someone with you to banker meetings. Their job is to
Van reported that the local housing market is a lot better
listen and take notes.
off than it was a year ago in many respects.
• Be prepared to sell at cost or less to get your debt off the
First, new home inventory has dropped from 2,460 units
books.
to 1,640. This number represents a 7.6-month inventory,
One of the panelists, a tax attorney, presented changes
compared to an 11-month inventory.
in the tax law that means good news for the bottom line of
Vans says a five-month inventory is considered “the magic
many of our members (see highlights of his presentation on
number” for a healthy housing market – and we are already
page 19 or visit www.tbaonline.org and go to Builder Services
achieving that number in some products and price ranges.
and click on “Other points of interest” for more details, as
For instance, activity has picked up significantly for dewell as Jeff Ainslie’s presentation, “Negotiating with your
tached resale products under $300,000 and detached new
lender.”).
home products under $400,000.
Even more than the valuable information at this breakfast
The absorption rate of four to six months for the new
was the knowledge that we’re all facing the same challenges
home products puts us on the verge of a return to a seller’s
in this tough economy. Even though we may sometimes commarket, according to Van. The resale products aren’t far bepete for customers, we want all of our members to feel like we
hind with 6.4 to 9 months of inventory on the market.
are all in this together, working and hoping for better days for
Remember, these buyers can get comforming loans with
everyone in the industry.
attractive interest rates. And now, the first-time home buyer
tax credit of up to $8,000 can be applied at closing, thanks
to extensive lobbying by NAHB, and state and local HBAs
across the country.
Unfortunately, we still have a hard resale market in the
Pete A. Kotarides
2
June 2009
2009
Cornerstone Foundation Members
Thank you to the following companies for their support of the shelter industry:
Diamond
$10,000
Platinum $5,000
Virginia Natural Gas
Dominion Virginia Power
Fulton Bank/Fulton Mortgage
TowneBank
Wells Fargo
Monarch Bank/Monarch Mortgage
Superior Equipment Sales Inc.
Cox Communications
Columbia Gas of Virginia
Gold $2,500
The Ainslie Group
SunTrust Real Estate Finance Group
Bank of America
Tidewater Home Funding
Beach Ford Inc.
The Virginian-Pilot
Sykes, Bourdon, Ahern & Levy P.C.
Bank of Hampton Roads
Williams Mullen
William E. Wood & Assoc.
Kotarides Builders
Napolitano Homes
Clark Whitehill Enterprises Inc.
Area Builders of Tidewater Inc.
Terry/Peterson Cos.
Hearndon Construction Corp.
Ashdon Builders Inc.
L.R. Hill Custom Builders Inc.
Miller Custom Homes
Joey Corp.
Greenbrier Lighting
Associated Development
Real Estate Information Network Inc.
Gateway Bank & Trust Co.
Reese Smith Construction
iLevel by Weyerhaeuser
The Closet Factory
June 2009
3
TBA announces
spring 2010 Homearama
Event will showcase Founders Pointe in Isle of Wight County
By Mary Prier, APR
N
ext year’s spring selling season will get a boost from Spring
Homearama at Founders Pointe, an established custom
home community overlooking Batten Bay, the James River
and its creeks and tributaries in Isle of Wight County.
Tidewater Builders Association is seeking builders to participate in
this showcase event, tentatively scheduled for April 17-May 2.
The neighborhood is being developed by East West Partners, developers of the world-class communities of Gatling Pointe in Smithfield,
Eagle Harbor in Isle of Wight County and The Riverfront in northern
Suffolk.
The site is located off Route 17, just three miles south of the James
River Bridge, or 10 miles north of I-664. It’s 15 minutes from Hampton and 25 minutes from downtown Norfolk.
There are 15 home sites available to custom home builders who
would like to participate in the showcase event.
Lot prices range from $112,500 for wooded views to more than
$300,000 for waterfront views.
“Homearama builders will be joining an established first-class
community, where homes are currently selling for $470,000 to over
$900,000,” said Branch Lawson, president of East West Partners. “We
welcome their talent and creativity into what is already an award-winning showcase community.”
“This waterfront community, with 320 home sites, is now home to
150 families. It has appeal for both the Peninsula and the Southside
market, and residents appreciate the county’s tax rate of .52 per $100
assessed value.”
Builders who are interested in participating must contact Teresa
Howell to receive an informational package before the lot drawing
scheduled for June 18. She can be reached at 305-9062 or thowell@
tbaonline.org
For more information about the community, visit
www.founderspointe.com.
4
June 2009
Community amenities
• Home sites from ¼ to more than one acre with
marsh, creek and wooded views
• $2 million resort-style clubhouse with swimming pool, waterslide, volleyball court and
children’s playground
• Full-time activities director for Resident’s Club
• Almost 3 miles of leisure trails
• Waterfront observation pier on Batten Bay
• Residents’ Club available for social events
• Design review process to protect architectural
integrity
Lot drawing
2 p.m. June 18, 2009
Founders Pointe Clubhouse
266 Founders Pointe Trail
Carrollton, VA 23314
Headliners
Builders, brace yourselves —
and your walls
iLevel by Weyerhaeuser is offering a three-hour seminar focusing on
the practical application of 2006 VA
602.10 Wall Bracing Code. The FREE
seminar will be held from 9 a.m. to
noon on Thursday, June 11, in the
TBA boardroom.
Open to all
builder and designer members,
the workshop
will give participants the knowledge
and tools to apply for a residential
building permit, as well as learn how
to develop bracing solutions based on
what they have learned. Builders are
welcome to bring their own plan to
review.
To register, contact Patrice Kyle at
305-9015 or [email protected].
Do you still not have your picnic tickets?
Don’t worry. You can still set sail with TBA
at this year’s Festival in the Park (formerly the
TBA Annual Picnic). The rain or shine event is
scheduled for 4 to 8 p.m. on Friday, June 12, at
Chesapeake City Park.
Enjoy mouthwatering food, refreshing beverages, exciting activities/contests and fabulous entertainment. Remember, this is an
adults only event and a great networking opportunity.
To order tickets for pick-up at TBA or the gate, contact Stella Council at 305-9065
or [email protected]. Ticket prices are online at www.tbaonline.org. Mark your calendars for TMHC gala!
Celebrate under the big top at the 25th annual TMHC awards ceremony on
Thursday, July 23, at the Virginia Beach Convention Center.
The festivities begin at 5 p.m. with the annual Associates’ Showcase in the lobby.
Dinner and the awards program will follow at 7 p.m., and also includes the RAM
graduation and presentation of the Community Awards of Excellence and the Merit
Awards for Professional Excellence.
The cost of the banquet is $60 for TMHC members and $70 for nonmembers.
TMHC’s Associate Showcase registration is also under way. Reserve your booth
early and receive a $25 discount!
For more information, contact Maggie Rickard at 305-9053 or [email protected].
Dig With
C.A.R.E.
Keep
Virginia
Safe!
Whether your project is big or small, one
free and easy call gets the underground
utility lines marked and helps avoid costly
damages, fines and even personal injury.
So, please call 811 and dig with C.A.R.E.
Call Miss Utility at
before you dig.
Allow required time for marking.
Respect the marks.
Excavate carefully.
This message brought to you by the
Virginia State Corporation Commission
June 2009
5
Getting back
to basics
Rental properties
are changing
their strategies
as competition
increases
Kotarides Builders is developing a transit oriented apartment community in downtown Norfolk, the Belmont at Freemason, near the city's light rail.
By Sara Steil
D
espite a slower housing market and a recession,
the apartment industry is booming. Across
Hampton Roads, developers are constructing
about 1,700 apartment units, with 2,000 more
planned, according to the 2009 Hampton Roads Real Estate
Review, by Charles Daton.
This doesn’t mean that the market hasn’t been affected by
the economy and higher-than-desired vacancy rates.
“We all have challenges today,” said Bill Halprin of S.L.
Nusbaum. “We just have to be on top of our game.”
So, the multifamily housing community is getting back to
basics to attract and retain tenants.
Where are the renters?
According to the 2009 Hampton Roads Real Estate Market
Review, “the occupancy rate in the Hampton Roads region
is consistently one of the highest in the southeast, but it has
been falling the last several years. As of October 2008, the
average rate was 93.1 percent.”
As with tough economic times, job loss and tighter bank
accounts, demand for housing slows.
“We’ve seen the downward trend in traffic that started a
year and a half ago,” said Chris Dembitz of Clark-Whitehill
Enterprises Inc., “but the number of people looking haven’t
been the numbers that they were before the downturn.”
According to Dembitz, the luxury properties were the first
to feel the pinch of the economy because those renters “were
always the renters by choice, so when money gets tight, they
go somewhere cheaper or they buy homes.”
According to Debbie Gordon, chairwoman of TBA’s Multifamily Housing Council, “it seems to be fewer military, and
the renters seem to be shuffling from property to property.”
6
June 2009
Shadow market competition
There is no way to gauge if unsold condos or homes now
being rented are hurting apartment communities.
“We’re not seeing so much of that,” said Halprin. “A lot of
that is more higher-end properties with a lot of condos,” and
even then, associations limit the number of condos that can
be rented. “We don’t see that much because a lot of times they
are much higher than our rent.”
One benefit, Dembitz added, is that “a lot of apartment
renters are not interested in renting homes because they don’t
want to deal with the yard maintenance.”
Negotiating a renter-driven market
“The problem is that renters are getting savvier and they’re
looking more to negotiate,” said Dembitz. “Right now, the renters are driving,” which is forcing properties to get back to basics.
“A few years ago, when the market was strong, you didn’t
have to worry about closing a deal because someone would be
in right behind them. Now, that’s not the case.”
How are properties attracting tenants?
Some properties are offering concessions, though most are
avoiding free rent, and instead increasing their curb appeal.
“It’s basically the perfect storm of things happening for
us right now,” said Dembitz. “Concessions are up, rents are
down, and collections are up — though they have stabilized
lately. Even people applying have lower credit.”
As a result, rental properties have had to adjust their credit
standards, as well as renew renters at the same rates. They’re
also reassessing their customer service, and training their staff
to use technology.
“We’ve really bolstered our Internet presence because every
Does the military affect
occupancy rates?
year, more and more of our traffic starts
Rental prices for Hampton Roads
on the Internet, and we want to make
The average quoted rental rate is $871 for
Hampton Roads, with the rental rates from
sure we have exposure,” Dembitz said.
The results are mixed.
existing inventory increasing by $6.70 in the
His company is also making sure its
last 12 months. Here are how the numbers
“We’ve been very fortunate because
staff is e-mail savvy and is incorporating
breakdown:
we
have more diversified industries here,”
texting and other new media into the rou- No. of bedrooms
Cost
said
Halprin. “I think we were more
tine. “For the younger generation, they
One bedroom
$779
adversely affected years ago than we are
Two bedrooms
$876
want to be able to do everything online,
today.”
Three
bedrooms
$1,031
interactive and immediate.”
Source: 2009 Hampton Roads Real Estate Market Review
“I think we’ve struggled with that
Others are turning to online sites to
more
in the last two years,” said Gordon,
list their properties. Many properties are now advertising for
whose
military
tenants
have
shrunk by 25 to 50 percent “befree on Craigslist, MySpace and Facebook, all online networkcause
of
the
carrier
groups
that
we have lost in the region.”
ing sites.
Instead, “we’re trying to get more of the professionals in the
“The largest source of new prospects is Craigslist,” said
20 to 28-year-old range.”
Gordon. “It has worked so well that we have added an emHowever, Dembitz has definitely seen the effect military
ployee who does nothing but update Internet and create vidhas
on his properties.
eos on YouTube, MySpace, Twitter and more.”
“We’ll see some traffic bumps when the carriers move in,”
he said. “And when there is a deployment, it’s bad and it hurts
us, but that’s because we rely so much on the military. So we
“It starts with retention,” said Dembitz, whose company
work really hard to attract and retain the military personnel.
is starting the renewal process earlier than ever and offering
We like to take the extra steps to help them if they show inmore incentives, such as repainting apartments, carpet cleanterest in staying in the apartment when they’re deployed.
ing, upgrading kitchens and reducing rents.
What about retaining tenants?
“The cost of turning over an apartment can cost $3,000 to
$5,000,” he said. “So, if you give someone a few hundred dollars to keep them in there, then you’re way ahead of the game.”
Though rehabbing units is one way to retain tenants, “residents are more interested in the price point than newer things
in the apartment,” said Gordon, who believes that the No. 1
focus should be customer service. Though “renewing residents
with little to no increases” is also a way to retain them, she said.
“You want to stay away from a concession-driven market,
but in some places, we have to offer some concessions, such as
offering anywhere from $500 off first month to first month
free, because our competition is doing so,” Dembitz said.
Halprin agrees, though he tries to limit rent increases.
In the end, renters are really looking for value, which “includes price, features/amenities and, most importantly, customer service,” Gordon said. “They want to feel that they are
getting the best value for their money, and they will move to
another community if they do not feel that they’re getting the
best customer service for the rent that they’re paying.”
Is the future of multifamily
communities bright?
It’s uncertain whether the new units under construction
will be competing with the market’s aging units. According to
Gordon, the new units will be directly competing with existing properties, but “I think if we can renew at no increases,
then we can slowly stabilize and increase rents over time.”
But the future of the multifamily housing community
does look promising.
“Our collections have been really strong, occupancy has
gradually improved — it’s at 3 percent vacancy,” said Dembitz. “Though we haven’t seen any rent growth, our traffic
numbers have been a little bit better.”
“I’m cautiously optimistic,” he continued. “We’re seeing
signs of improvement. Because of the military presence in
this area and the government spending, hopefully this will
be one of the first areas to crawl out of the funk that the
country is in.”
Virginia Beach’s The Crossings at Red
Mill and Chesapeake’s Holly Point
won first-place honors in 2008 Award
of Excellence for their properties.To
attract new tenants, many multifamily
housing communities are emphasizing the amenities that come with
apartment living, such as pools and
manicured landscaping. In today’s
economy, property managers are
getting back to basics, which includes
increasing their curb appeal, to attract
tenants.
June 2009
7
What to do instead of free rent
Multifamily marketing tips from a pro
I’m not against wooing and
pursuing every customer in the
market. I just don’t believe in messing with the rent check. So, here are
some ways to stay away from free rent
concessions.
Why do communities offer free rent?
It’s easy! It doesn’t take a plan, an idea, nor require creativity and owners let you. But just because people do it, doesn’t
make it the right answer.
Great American Business Products hired a team of marketing experts, including myself, to plan and create dynamic
amenities signs that will get you noticed.
If you are willing to have a plan, an idea and be creative,
you don’t have to give away rent.
The market doesn’t decide — you do
I asked my colleague Jennifer Nevitt, the renowned guru
on multifamily industry pricing, to share her ideas. Here’s
what she had to say:
Nevitt: Toni, our current thinking is sad. Actually hearing someone tell me “it’s the market” makes me cringe. In a
conversation with a property manager, we discussed (her)
By Toni Blake,
Guest columnist
market’s condition of 83 percent occupancy. Her perception was that the
two-months FREE rent would help her
gain ground against competitors. The
reality is if the market is 83 percent
occupied; two-months FREE rent isn’t
going to fix the insufficient demand.
It’s dangerous to match the lowest
concession. If you give a week free as
my competitor, I will match you. If you
give two weeks free, I will match you
again.
We are still renting the same number of apartments based
on available market share just at much lower rents.
Toni: Your entire existence in real estate is to increase the
value of the asset. When you lower the rent, it does not just
change your bank balance, it changes the perceived value of
your product.
My reaction to a soft market is not to decrease my value,
but increase it. I need the customer to see me as the best
choice and not the cheapest.
I will win with a simple, yet very clever value-marketing
plan, which includes some of the following:
Games
You can play who wants to be a millionaire by having a
balloon with lottery tickets inside. Everyone who looks at an
apartment gets a balloon and the chance to win millions.
Spin the wheel for incentives, such as vacuum cleaners and
blenders. People love “custom features,” so give them a chance
to decorate with a free accent wall painted from a section predetermined by your company. Add chair rail in the dinning
room to match their furniture ($15). Add color and style
with removable wallpaper borders ($17.50 per room).
Let them take a chance and spin a wheel with $300-$800
to spend in the design center. This money is re-invested back
into your real estate asset.
Contest
Before you give in to temptation to give away free rent, try
a contest with an exciting (non-rent) giveaway. Remember
that everyone who visits your community must be allowed to
enter a contest in order to make it legal.
Build confidence in the property
Create a poster that lists 25 reasons why a prospect should
become a resident. Reinforce the message to your team with
spot checks where regionals call or personally ask a team
member to state five of the reasons to rent, and if they can,
they give them $5 on the spot.
(Continued on page 17)
8
June 2009
Builder Services Success Story
Builder touts the value of TBA
By Sara Steil
• National Association of Home BuildParties impacted: TBA builders
ers “I love the affiliation with the National
Advocate: Eva Dailey
Builders’ Association and the information
Despite today’s economic challenges, many members, including
that they put out combined with the inEva Dailey, are reaffirming the value that their membership in TBA
formation that TBA puts out,” said Dailey,
provides.
who has also used her affiliation with other
“Being a small builder and the economy being the way it has
programs to earn her graduate builder cerEva Dailey
been, the membership fees are large enough that you have to baltificate.
ance where you spend your money,” Dailey said. “Staying with TBA
• Education “They (TBA) are doing a great service to the
is one of the places that I wanted to spend my money because I
builders by keeping us informed and being on our side
need to know what’s going on.”
and being there for us,” said Dailey. “The lobbying is also
Value of TBA membership
fantastic and the education is great.”
• Homearama Trying to build a reputation as a female builder,
• Most valuable For Dailey, it’s “being informed of what
Dailey joined forces with another female builder in 2000 and
is going on, not only locally, but also nationally,” she said.
2001 to showcase her work.
Learn more about the benefits of being a TBA member
• Stanley Awards “It gave us a good reputation for being a
at
the
member orientation at 9 a.m. on Thursday, July 14.
reputable builder,” said Dailey, who uses her award in advertisFor
more
information on TBA membership, contact Stacey
ing campaigns. “I can advertise my award that I won and that,
Turner
at
305-9042 or [email protected].
‘Yes, I’m a good builder.’”
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grant from the National Home Builders Institute.
June 2009
9
Builders are not
insurance professionals
Savvy builders caught off-guard by insurance exclusions
Even the most savvy business owners
can find themselves caught unaware of
endorsements (exclusions) added to their
insurance policies that
leave them exposed to
risk they thought was
covered.
Veteran builder Jeff
Ainslie, a long-time
By Patty
BIIA Workers’ Comp
Letchworth
customer, offers a case
Guest columnist
in point, having found
unexpected exclusions in another company’s GL policy. “Having gone back
and read cover-to-cover every policy
issued for the past 10 years, we now
recognize that each year, numerous
endorsements have been added to the
policies,” said Ainslie. “Some of these
are simply clarifying policy language
while others significantly reduced the
primary coverage areas.” These exclusions prompted partner John Ainslie to
ask: “What do these policies actually
still cover?”
Here are some examples of what to
look out for:
Example 1: Exclusion “L”
damage to your work
“Property damage” to “your work”
arising out of it or any part of it and
included in the “products-completed
operation hazard.”This exclusion does
not apply if the damaged work or the
work out of which the damage arises
was performed on your behalf by a subcontractor.
Endorsement CG 22 94 10 01
modifies this exclusion to eliminate the
second paragraph of this exclusion leaving “your work” or any property damage arising out of it.
What it means to you:
As a builder, “your work” is the
house. So any property damage to the
10
June 2009
house or any property damage arising
out of it is excluded. These 25 words
in what may be a 500-page document
leaves you exposed. Unfortunately, the
reduction in coverage doesn’t correspond to a reduction in premiums.
Example 2: Policies issued on an
“Occurrence basis with a Sunset
Clause”
An occurrence policy normally means
the policy will respond based on when
the occurrence (event) takes place.
The alternative policy language
changes the trigger from the occurrence
to the policy term.
It usually reads something like this:
“This policy will not provide any coverage, regardless of the other terms and
conditions of the policy, including the
definition of “occurrence,” for any claim
or “suit” made against an insured unless
the claim or “suit” is reported in writing to the insurance carrier within two
years after the expiration date of the
policy period.
What it means to you:
Since every policy has a one-year
term, this language dramatically reduces your claims coverage.
BIIA insurance policies issued by TBA
do not contain these exclusions. Our program was designed for and by the building community to offer a policy that is
among the broadest in the industry.
Yes, we have exclusions but you will
not be surprised by hidden exclusions.
BIIA not only depends on our professional insurance agents to review the
policy terms with you, we send our loss
control specialist to meet with every
purchaser of our general liability policy
to ensure our clients understand the
requirements of our policy and have
tools in place to assist them when that
unexpected event occurs.
No insurance policy covers everything, but you should be aware if an
exclusion exposes your business so you
can decide whether to accept the risk or
find another means to transfer the risk
through a different insurance product
or through contractual risk transfer.
To hear directly from a local builder
who experienced the benefits of BIIA’s
general liability policy and the loss control services free to our clients, listen
to David DeBord’s story by visiting our
Web site at www.vabuildersinsurance.
com.
Please ask your insurance agent,
“Does my general liability policy contain exclusions that reduce my coverage?” Spend an hour with your agent to
review the endorsements contained in
your policy. A good agent will welcome
the opportunity to provide this valuable service.
Patty Letchworth is the staff vice present of Building Industry Insurance Association and can be reached at 420-3022
or [email protected].
We’re reducing our
carbon footprint.
TBA has trimmed the number of Tidewater Builders being sent
to member firms. If you are getting more Builders than needed,
contact Stacey Turner at 305-9042 or [email protected]
and tell her who should be removed from the list.
Surviving the times:
Part 4 of an ongoing series
Advice for
builders
• Consider your
price point.
Houses below
$300,000 are
always selling.
The late Horace
Cistola, 1966 TBA
president, gives Larry
A. Sancilio, left, his
scrapbook, which
highlights his role as
TBA president during
1967.
Staying afloat starts
with consumer education
By Sara Steil
W
hen Larry A. Sancilio
took the reins as TBA
president in 1967,
home buyers were wary
of purchasing homes and builders couldn’t
finance them.
Despite 40 years passing since his presidency, Sancilio understands the problems today’s builders are facing. “Some
builders have been experiencing such a
tough time, but to me, so much of it’s
psychological,” Sancilio said. “So many
people are hesitant because of all of the
negative media.”
Builders, according to Sancilio, need
to realize that consumers are taking media reports as gospel, and are therefore
hesitant to leap into home ownership.
Couple that with the difficulties builders and buyers are having obtaining financing, and it will create “a psychological impact to keep people from buying
houses,” he said.
To reverse the trend, TBA, then the
Tidewater Association of Home Builders, formed the Home Ownership Education Inc., a nonprofit organization
that strived to educate the public about
the benefits of buying a home. The result, according to an article in the Sun
in 1967, was an increase of 12 to 13 percent the first four months in multiple
listing services sales.
With funding from builders, TBA
developed a “Buy A Home Now” campaign, an educational home ownership
program to combat what was going on
in the marketplace.
“People start to hear so many things
about the economy, and they are affected by that,” Sancilio said. “It’s embedded in their minds, and they fear doing
anything. Therefore, they cut down on
expenditures and sit still.”
“In my 54 years, up until the housing boom beginning in 2004, we’re always cyclical in the industry,” Sancilio
said. “Things would be going along at a
3 percent a year increase in value. Then,
we jumped up to 50 percent during the
heyday in the early 2000s. And now
that’s changed and gone the complete
opposite.”
But it’s a natural cycle that corrects
• Make sure
your staff is Sancilio
educated. For
example, have regular meetings with them and make sure
they know what’s really going
on in your business and the
industry.
• You have to offset and counteract the negativism in the
media.
• Make sure the general public
is educated about how our local economy, with strong military and low unemployment,
is different from the markets
on the national news.
• Try to educate potential
homebuyers through your
sales personnel that this is the
best time to buy a home.
• Discuss developing a local
“Buy A Home Now” campaign by letting potential
homebuyers know that now
is the greatest time to buy.
Interest rates are low and buyers have the most inventories
from which to select. The economy will bounce back, which
means that inflation will also
be an issue in the future, so
buy now.
• Remember, this is just a cycle.
You will bounce back.
the situation, and today’s builder will
emerge from it, just as they did back in
the 1960s, Sancilio said.
June 2009
11
Counsel ’s Insights
By C. Grigsby Scifres
Getting out of contracts
A
common contingency found
in (or as a rider to) real estate
purchase contracts is the attorney approval clause, which
provides purchaser and seller with a brief
period, usually a matter of days after offer’s acceptance, to permit their respective
attorneys to review the contract. If any
term is unacceptable to counsel, a party
may seek to modify or cancel the contract
without liability. If the approval period
lapses without objection, then the provision expires and is rendered inoperative.
Two recent court cases resolved disputes
turning on the interpretation of attorney
approval clauses.
An example from Wisconsin
In a case from Wisconsin, an offer
was made and accepted to purchase
residential real estate property under a
contract that included a five-day attorney approval period. A closing date was
set and both parties fulfilled their respective obligations in connection with
the offer. Neither party objected during the five-day review period. Shortly
before closing, the sellers notified the
purchaser that they would not proceed
with the sale contending that the attorney approval clause rendered the
entire contract illusory and therefore
unenforceable. An illusory promise is
one that can be kept without any detriment or restriction. In other words, the
promisor has given no consideration so
there can be no binding contract.
The court noted that a contract is
not illusory if it contains alternatives for
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12
June 2009
a party so long as at least one alternative
would constitute valid consideration. The
court said the clause essentially presented
the parties with two options: proceed
with the contract or consult with an attorney who may object during the approval
period. Because the clause did not render
the contract illusory and no objection
was made during the five-day period, the
appellate court affirmed the lower court’s
decision in favor of the purchaser.
An example from New York
In a New York case, purchasers developed doubts about their decision (buyer’s remorse) after having signed a real
estate contract to purchase property in
upstate New York. They instructed their
lawyer to disapprove the contract during
a three-day attorney approval period effective under a rider to the contract. The
rider explicitly stated that if either party’s
attorney disapproved during the review
period then the contract was void. Three
years later, the sellers sold the property
for $120,000 less than the original contract price. The sellers then sued the
original purchasers for breach of contract
and the “covenant of good faith and fair
dealing” and sought to recover as damages the difference in price, as well as
other costs incurred over that three-year
span. The trial court agreed with the sellers’ argument that the purchasers acted
in bad faith by instructing their attorney
to disapprove the contract and decided
that the attorney approval condition was
therefore waived and ineffectual.
The Court of Appeals, New York’s
highest court, disagreed with the trial
court and upheld the purchasers’ use of
the attorney approval period to cancel
the contract. Because the contract clearly
stated that it was “contingent upon” the
approval of each party’s attorney, the appellate court found that the contract had
indeed been voided by objection before
expiration of the review period. Further,
the court was unwilling to read any
implied limitation into the otherwise
clearly worded contract language.
The court explained that the implied
covenant of good faith and fair dealing
between contracting parties enforces
the notion that neither party will do
anything to disrupt the others right to
the benefit or “fruits” of the bargain.
In this case, however, any benefits were
expressly contingent on attorney approval. Essentially, an attorney may disapprove a real estate contract for any or
no reason if the contract is “subject to”
or “contingent on” attorney approval
with no further limitations. The court
also emphasized that any inquiry into
whether an attorney’s disapproval was
motivated by bad faith would necessitate review of attorney-client communications. Because this conflicted with
preservation of the attorney-client confidentiality privilege, the court would
not start down that slippery slope.
Building Dreams. One Home at a Time.
499.7000
ainsliegroup.com
What is the point?
Although courts in Virginia have
not analyzed attorney approval clauses
in the same light as these recent cases,
there are lessons to heed. These clauses
should be enforced by Virginia courts.
If there are no criteria for an attorney
objection, then it is likely that the approval clause can provide an opportunity to rethink the deal as was done in
the New York case. If a party wants to
avoid giving the other party a chance to
reconsider, then adding specific bases
for an attorney objection makes sense.
For instance, in addition to the length
of time parties may specify that the
attorney review/objection be limited
solely to specifically identified provisions (e.g., particular representations
and warranties, conditions precedent
or indemnities). Obtaining competent
advice before putting pen to paper on
a real estate contract may help to avoid
these types of disagreements.
C. Grigsby Scifres, a partner in the
Virginia Beach office of the law firm of
Williams Mullen, is Tidewater Builders
Association’s general counsel. For further
information, contact Scifres at (757) 4735370 or [email protected].
June 2009
13
TBA tees off
A
fter a week of nonstop rain, the weather cleared just
in time for this year’s Charity Golf Tournament on
Wednesday, May 20, at Sewells Point Golf Course
in Norfolk. About 100 golfers enjoyed 18 holes in
support of TBA’s Building Trades Academy, which offers an
education and trade skills to economically disadvantaged participants.
This year’s tournament, chaired by Dennis Graf of Graf Construction, included only one round of Florida Best Ball.
The winners are:
FIRST FLIGHT
First place, with a score of 56: BB&T
(Don Parnell and Joe Dreps)
Second place, with a score of 57:
Clark-Whitehill Enterprises Inc.
(Mark Arnold, Kyle Adams and Sean Stegina)
SECOND FLIGHT
First place, with a score of 65: Kotarides Builders
(Pete O. Kotarides, Basil Kotarides, Lucky Peterson
and Hunter Frischkorn)
Walter Rein, of the Bank of America team, tees off at
the hole sponsored by the Ainslie Group.
Second place, with a score of 66: Xteriors
(Diane Shirley, Dave Chirico, Chris Rupp and Clay Massey)
Longest drive – Lady’s
Kelly Beck
Despite being
without two
players, Don
Parnell and Joe
Dreps, of BB&T,
took home the
trophies to this
year’s tournament with a
score of 56.
Long Drive – Men’s
Bob Berlucchi
Closest-to-the-pin
David Via
Dominion Virginia
Power teammates
Steve Sanders,
far left, and Alan
Bradshaw enter
to win a free pressure washing from
Christina Mickes,
front right, and
Amanda Cook of
McKown Pressure
Washing.
14
June 2009
John Madson, right, of James Hardie Siding watches closely as his
ball approaches the hole, while teammate Grant Hancock looks on.
Bill Williams, AmerAssist; Tom Gallagher, Gallagher Homes; Kevin Jones,
ODU Off-Campus Housing Listing Service; and Chris Russi of Smith Barney joined forces for a day of friendly competition.
Diane Shirley, showed her Xteriors teammates she could
hold her own among the guys. She even went home with
a handful of prizes from the raffle.
Thanks to
our sponsors!
Heritage Title
Moose Lodge
Prosource Wholesale Floorcoverings
Towne Bank Mortgage
Ainslie Group
Clark-Whitehill Enterprises Inc.
Dow Building Solutions
The Kotarides Builders team, from left to right, took home first place in the
second flight. Pete O. Kotarides, Basil Kotarides, Lucky Peterson and Hunter
Frischkorn.
ESI Electronic Systems
Ferguson Enterprises
Igor’s Graphics
James Hardie Siding
Kotarides Builders
McKown Pressure Wash & Painting
Mid-Atlantic Coca-Cola
Monarch Mortgage
Pacific Income Advisors
Robinson Development Group
Megan Tolson receives
some friendly advice from
co-worker Lee Ward,
both of whom were on
one of Clark-Whitehill
Enterprises Inc. teams.
Sprint
Wells Fargo Real Estate Group
Xteriors
June 2009
15
Shades of Green
Solar energy does pay off
By Richard Good,
Green Building Council
I
jokingly say solar systems installed in the ’70
s and ’80s consisted of the good, the bad and
the ugly. Most systems then were used for hot
water and house heating. Though many of the
“good” systems are still in use, the vast majority
of the bad and ugly systems have been removed.
Many of our customers have seen savings totaling
$15,000 and according to the American Appraisal
The solar hot
Institute, their systems are now worth four times
water, left, and
what they initially paid.
photovoltaic
unit, right, will
Today, solar systems generating electricity garner the most attention, though solar pool and hot save the homeowners money
water heating are the most efficient uses of solar
on electric bills.
energy. Inverter technology has been perfected,
so we now have “grid-tied” inverters that allow electric meters
the scope of the cost to American society.
to turn backwards, thus giving the homeowner a credit against
Plugging in has been great — as long as the mess wasn’t in
their bill.
our
backyard! For good measure, lets throw in the medical and
Go solar and save
air
pollution
costs, of which we are all exposed.
Recent legislation changes have made available a 30 percent
As
a
child
I
was taught that it was always cheaper to prevent a
tax credit for using solar energy, as well as the ability for the homproblem than to clean it up. Almost everyone I meet learned the
eowner to make extra money by selling Solar Renewable Energy
same lesson. Yet somewhere on the way to adulthood we’ve selecCredits, or SRECs. One SREC equals one megawatt of energy.
tively forgotten the lesson, even though we teach it to our children!
By selling SRECs associated with the system’s energy production,
be it thermal or electric, income totaling several times the annual
Virginians not so fortunate
energy savings can be generated.
Sadly, Virginia is one of a growing minority of states where
So now, your home not only provides you with shelter, but
it’s against the law for many homeowners to avail themselves
with the right solar system it can also generate income. One of
of all these financial incentives. Times change, but many homour customers recently received a check for more than $4,000
eowners are prevented from enjoying the benefits of clean solar
for last year’s production of SRECs.
This, of course, is a big wow factor. Energy savings, which in energy due to restrictive covenants aimed originally at the bad
and ugly solar systems of the ’70s and ’80s. These covenants
new construction can be more than twice the mortgage cost,
have, in many cases, become a standard provision when a new
are now sweetened by a check from the IRS at the end of the
subdivision has been developed.
year for 30 percent of the cost, and there is the prospect of a
Whatever their original intent, the net result now prevents
check every quarter for the sale of the SRECs generated by the
homeowners from boosting income, savings and enhancing the
system.
value of their homes.
For the last four years, Republican and Democrat legislators
Why all this money?
alike have tried to address this subject in the state legislature
Americans and the government finally are waking up to the
but have been thwarted by their colleagues or met with equivolong-term unaccounted costs of generating power and energy
cal results at best.
the old way.
Wake up Virginia. It’s time to join the 21st century. There’s a
For example, the implications of such have been brought
brave
new world out there and we need to be part of it! to our own backyard with the 1.6 million tons of fly ash off
Centerville Turnpike in Chesapeake.
Richard Good is owner of Solar Services, which specializes in
In West Virginia, in some places, vistas of removed mounsolar technologies and a member of TBA’s Green Building Council.
taintops and polluted streams march to the horizon. Multiply
He can be reached at 427-6300 or [email protected].
these by thousands across the country and you’ll have an idea of
16
June 2009
Free rent
(Continued from page 8)
Create your own lease up team!
Take your best leasing people and let
them travel from property to property
as your top guns. Inspire your on-site
team with a pool comprised of a percentage of the first month’s rent per
apartment divided by the appropriate
percentages for each team member.
What else can you give?
• Cover some moving expenses
• Pay for the van
• Groceries
• Trips (cost you less)
• Upgrades (that remain with the
home)
• Selection from a gift table
The difference between a
negotiation tool and a “giveaway”
When you print the words “free
rent” in your ad, it is a giveaway. You
have no ability to establish any kind of
requirement or negotiations in return
for that gift. If you have anything printed with your special, take it off !
The special or incentive you give
should be changed per unit type, view
and other specifics and not across the
board. However, it must have conditions, such as meeting criteria or leaving
a deposit.
Toni Blake is a nationally recognized
speaker and author who has been selected
by the National Apartment Association
as one of the industry’s “Marketing Gurus.” She can be contacted at (866) 8896600 or e-mail [email protected].
Get involved in
Homearama 2009
TBA sales representatives are
reserving exhibit booths for
Homearama 2009. The event is
scheduled for Oct. 3-18 at
Culpepper Landing.
Sponsorship opportunities and
Plan Book ads are also available.
Contact your sales rep
at 420-2434.
Top brands. Low prices. Factory authorized service.
Experienced people. What did we miss?
Ed DeVries and
Tom Huxtable.
Sales professionals at
East Coast Appliance
Builder Direct.
Hopefully we didn’t miss a thing. Because we’ve done everything we can to serve
architects, builders and contractors. We even have a
separate showroom just for you. And we’re equipped
to serve everything from custom homes to multi-family
projects. When your next project is ready for appliances,
call us. We won’t miss a thing.
113-A South Witchduck Road • Virginia Beach, VA 23462 • 757-499-2883
June 2009
17
Hip, hip, hurray for TBA recruiters
Builders, associates surpass rivals, other associations, in drive
By Sara Steil
I
t doesn’t take an action hero to know that Tidewater
Builders Association would come out on top, and that’s
exactly what happened at the reporting party for the annual membership drive.
Though challenged by the Home Builders Association of
Virginia, in conjunction with the National Association of Home
Builders’ National Membership Day, to increase membership by
11 percent, TBA went one step further. Asked to recruit 88 new
members, TBA managed to bring in 100 as of the state-reporting
deadline on May 14 at 5 p.m.
TBA brought in 24.5 percent of all new members for the
state. Richmond placed second in the category with 49 new
members, while Northern Virginia came in third place with
44 new members.
Chuck Miller and The Green Team took first place with
26 new members, while Lucky Peterson and The Board Team
and John Ainslie and The Past Presidents team tied for second place with 16 new members each.
Recruitment prizes were thrown in to sweeten the pot. The
winners included:
John Ainslie of the Past Presidents Team puts last-minute pressure on Chuck Miller of the Green Team to recruit new members.
Six VIP tickets to the Coldplay concert
Michael Newsome, Clark-Whitehill Enterprises Inc.
Top recruiter, Chuck Miller, Miller Custom Homes
Prize: Lunch with Fred Napolitano
Dinner at Sonoma Wine Bar
Ted Yoder, Monarch Mortgage
Cruise valued at $1,600,
Chuck Miller, Miller Custom Homes
Dinner at 456 Fish
Pete O. Kotarides, Kotarides Builders L.L.C.
$400 gift certificate for use at the Sanderling Resort & Spa,
Chuck Miller, Miller Custom Homes
Dinner at One Fish-Two Fish Tom Dye, Ferguson Enterprises Inc.
A big thanks!
To the 10 brave teams that stepped forward and accepted the challenge of recruiting the most new members. They are:
Associators
(associate members)
Jim Jackson, captain
Julie Williams
Mary Kantmann
Tom Dye
Deb Carson
Robbie Bell
Scott Gandy
Jesse James
Green Team
(Green Building Council)
Chuck Miller, captain
Allen Loree
April Litton
Guy Sorensen
Janie Benko
Kathy Browning
Matt Froehler
Richard Good
Suzanne Waterfield
18
June 2009
Homearama Committee
Herb Watson, captain
Bill Brice
Erin Widener Speckhart
Jamie Iuliano
Sam Cohen
J.R. Reddecliff
Mary-Dolph Simpson
Scott Brooker
Stephen Quick
T.E. Jones
IronMen
(past presidents)
John Ainslie, captain
Bob Widener
Chip Iuliano
Ed Sadler
Jeff Wermers
Larry Hill
Michael Newsome
Membership Committee
Bill Halprin, captain
Trent Dudley
Skip Ferebee
Tom Huxtable
Chris Schwab
Doug Smith
Mighty Mouseketeers (TMHC)
Debbie Gordon, captain
Chris Dembitz
Mike Devine
Diane Tyler
Doug Taylor
Mortgage Bankers, Part I
Toby Harris, captain
Angela Knight
Darlene Kemp
Karen Rayfield
Kay Hamilton
Naoma Doriquzzi
Paul Murdock
Mortgage Bankers, Part II
Ted Yoder, captain
Bill Lane
Chaytor Midgett
George Cooper
Jack Lane
John Frankos
Laura Beck
Ray Gunter
Steve Sager
Remodeling Team
Frank Sgromolo, captain
Ed Cape
TBA Board Members
Lucky Peterson, captain
Andy Herr
Pete A. Kotarides
Pete O. Kotarides
Getting money from new tax law
By Mary Prier, APR
N
athan Olansen, tax attorney with Williams Mullen,
presented tax benefits from
the American Recovery
and Reinvestment Act of 2009 to TBA
builder members at a recent Builder
Breakfast. The following are highlights
from his presentation:
municipality to exempt or partially
exempt property from taxation
if the building meets established
guidelines for conserving energy and
natural resources.
• Effective July 1, 2009, the personal
income tax credit on retrofitting a
home for disabled access increases
from $500 to $2,000.
For more details about the tax law
changes, see Olansen’s handout in the
Builder Services section of tbaonline.org
and click on “Other points of interest,”
or consult your tax accountant.
Net operating loss
deductions
Operating losses from 2008
can be carried back and used
against tax returns from the past six
years, allowing small businesses to
recoup taxes paid when profits were
higher. The change applies to any trade
or business whose average annual gross
receipts for the previous three-year-taxperiod are $15 million or less.
Green tax credits
Home buyers can get up to a
30 percent credit with no limit
for energy efficient measures in homes
built through 2017. It applies to solar
electric, solar water heating, fuel cells,
wind energy and geothermal heat pump
systems. In condominium associations,
each unit owner is entitled to a proportionate share of the credit.
For 2009 and 2010, homeowners
are eligible for 30 percent of the cost of
qualifying insulation, exterior windows,
doors and skylights, metal and asphalt
roofs that reduce heat gain, natural gas,
propane, and oil water heaters, furnaces
and hot water boilers, as well as electric
heat pumps and central heating and air
conditioning systems. The maximum
credit limit is $1,500.
At TowneBank, we enjoy partnering for success with builders and
the real estate community. We know a thing or two about the
construction business, and are pleased to help your business
grow and prosper. With money to lend, and dreams to build,
what could be better than a TowneBank friend?
Call Wayne Humphreys on the Southside (412-1258)
Dennis Napier on the Peninsula (249-7608)
In Virginia
• Municipalities are authorized
to grant incentives to encourage
green roofs in construction, repair
or remodeling. These may include
reduced permit fees, a streamlined
permit process or a reduction in any
gross receipts tax on green roof contractors.
• The 2010 General Assembly will
consider a resolution to allow any
Seventeen locations to serve you:
Portsmouth
Peninsula
757-638-7500
Chesapeake
757-249-7800
Virginia Beach
Williamsburg
757-412-2400
Norfolk
757-548-7200
757-564-4700
757-628-6340
Member FDIC
Equal Housing Lender
June 2009
19
TBA facelift
After
Before
Mike Cohen of Renaissance Landscaping works with
his crew to finish the installation of landscaping pavers at TBA’s entrance. Cohen’s crew then updated the
landscaping with new flowers and trees.
20
June 2009
Spearheaded by past TBA President Bob Widener of The Widener
Corp., the exterior and interior of TBA has undergone a transformation.
The aging and broken siding was removed and replaced with Hardie
plank, courtesy of James Hardie Siding Products, on the main building, the Building Trades Academy and the other outlying buildings. The
building was then pressure washed and the awning removed. A black
canvas awning shadows over a paved entranceway, instead of the former
concrete walkway. To top off the project, a new sign was installed and
new letters and updated landscaping complete the project.
Bob Widener, center, of The Widener Corp., discusses the landscaping plans
with Robert Nye, left, and Mike Cohen, right, of Renaissance Landscaping. Widener was the force behind TBA’s makeover.
A big thanks!
To the following companies and individuals for their contributions:
James Hardie Siding Products
John Madson, supplied Hardie plank siding
Custom Stone
Steve Sims, cutting marble sink tops to fit
Lowe’s Home Center
John Williams, architectural shingles
A&A International Awnings & Rollshutters
Mike McDonald, awning for front door
International Tile & Marble
Carl Pope Sr., tile, grout, thin set, crack suppression
Vico Construction
Emil Viola, parking lot repair & resurfacing
First Cut Tile
Tom Dubois, installation of tile (labor)
Sherwin Williams
Phil Miller, paint and caulking
Ted Lansing Building Supplies
Chuck Apperson, delivery of siding
Sign Works Inc.
Lisa Terry, signage
Renaissance Landscaping
Robert Nye, landscaping and paving
SunBelt
Erik McCarroll, rental lift equipment
B&T Kitchens
Kevin Riley, bathroom cabinets
McKown Power Wash & Painting
Bob McKown, power wash the building
Ferguson
Tom Dye, marble sink tops and bathroom fixtures
Building Trades Academy
Tony Davis, Billy Vick, Franklin Cobb and students
Limited time offer for TBA members
Port your wireless phone number from
any other wireless carrier and receive a
$100 ser vice credit per line.
Jesse James
BUSINESS AC C OUNT EXECUTIVE
for
Tidewater Builders Association
757.572.5813
j e ss e. j ame s @ spr i nt . c om
• Some restrictions apply
June 2009
21
Practice, don’t just preach,
safety on the job
S
afety is freedom from danger or harm. However, we all know that it’s impossible to be
completely free from danger. So it’s essential
that everyone know how to act safely in dangerous situations, especially in our workplace and on our
job sites. Safety should be our first consideration, and
since June is National Safety Month, now is a great time
to brush up on your safety procedures.
By Jackie Atkins
glasses, goggles or face-shields) when operating
power tools, working in the shop or in heavy dust
conditions.
• Protect your hearing with earmuffs or plugs
when operating noisy equipment, such as chain
saws, power tools or other heavy equipment.
• Protect your lungs with the correct respiratory
equipment (dust masks or cartridge respirators)
Guest columnist when working in dusty or moldy conditions, spray
Safety starts with education
painting or applying chemicals.
All employees should receive basic and advanced safety
•
Protect
your
hands from everyday abuse with job-matched
training based on their job tasks. Each employee should be
gloves.
instructed on and receive regular safety reviews for safe opera•
Protect your feet with safety shoes or boots with non-slip soles
tion of all power tools. Personal protective equipment also
and heels.
should be provided and its use should be mandatory on the
•
Protect your skin against toxic or irritating chemicals, as well
job site.
as from the sun’s harmful rays by using sunscreen.
When starting a new activity or a new job type, all employees and supervisory personnel should discuss and review particular hazards and safety should be implemented at the site.
Prevention is an important element of safety
Remember, using personal protective equipment, PPE, can
reduce the number and severity of accidents and injuries. It
not only helps protect people, but also it improves productivity and profits. Everyone can share in these benefits by using
the appropriate protective equipment when on the job.
Its potential hazards call for it. When on the job, the guidelines below should be exercised to help prevent accidents.
• Protect your head with a hard hat when performing construction work, trimming trees, repairing machinery and performing other jobs where your head is exposed to injury.
• Protect your vision with appropriate safety eyewear (safety
Developed lots for sale
22 lot subdivision on Cedar Rd. in Chesapeake.
Minimum lot size – 15,000 square ft. Grassfield High School.
Priced from $135,000 per lot. Available June 2009.
Contact Don Hauck 757-439-7220 or
Joe Arroyo 757-202-8189 Owner/Agent
5
9 lots available at Eagle Creek
Golf Course Community in Moyock, NC.
10,000 square ft. minimum. 4 interior lots at $85,000 per lot,
5 golf course lots at $95,000. Sewer tap fees paid.
Contact Joe Arroyo 757-202-8189
22
June 2009
Don’t forget to inspect first:
Before heading into the field, make sure you inspect yourself and your equipment. Below is a short checklist of what to
look for before heading to the job.
• Are appropriate PPE available in work areas?
• Are PPE kept clean and functional?
• Are shoes or boots equipped with safety toes, insteps or shanks?
• Is sunscreen available for workers who are outside and exposed?
Remember, safety is not only our goal, but it’s a lifesaving
necessity.
Jackie Adkins is a loss control consultant with Building Industry
Insurance Association. She can be reached at 615-9819 or by e-mail
at [email protected].
Advertise in
The Tidewater Builder !
The
Tide
e of Tidewater
The official magazin
ion
Builders Associat
r
wa T e
56, Number
May 2009 Vol.
4
me,
Welcome ho
Cpl. Bartlett
Homearama
to feature
12 homes
It’s easier, and more affordable,
for you to connect with your
clients in the industry.
TBA’s monthly magazine
reaches more than 4,000
association members.
positive
Remodelers
s ahead
about day
For more information on advertising rates call Kim Powers
at (757) 305-9029 or [email protected]
Shop Talk
TBA members inducted into hall of fame
Nationwide Custom
TBA members Fred and Donna Belka, owners of
Homes’ President Andy
Tidewater Modular Homes, were inducted into NationMiller, center, inducted
wide Custom Homes’ Builder Hall of Fame on April
Donna and Fred Belka,
24. The hall of fame honors builders who have been apowners of Tidewater
proved independent builders with Nationwide for 12
Modular Homes, into
years or longer.
the Nationwide Custom
Homes Hall of Fame.
In addition to the 12 years as a Nationwide approved independent builder,
inductees had to attain $4 million in sales
and demonstrate support and involveFULTON MORTGAGE COMPANY
ment in the modular industry. The Belkas have delivered more than $5.5 million
of housing products during the time they
have worked with Nationwide. Serving
YOUR CLIENT’S HOME IS
the Eastern Shore of Virginia and SouthTHEIR BIGGEST INVESTMENT.
eastern Virginia/Hampton Road, the
business recently expanded to open a new
THEY DESERVE AN EXPERT.
model home on the Eastern Shore.
“These builders have been consistently
strong, successful partners to Nationwide
and share in our vision to provide home
At Fulton Mortgage Company, A Division of
buyers with the home they want, built the
Fulton Bank, we offer competitive rates and
modular way,” said Nationwide President
specialized programs that fit the needs of home
Andy Miller.
Real estate firms join forces
Rose & Womble recently acquired Leading Edge Realty, Rose & Womble CEO
Jim Rose announced.
“During these tough economic times,
Scott Ayers, principal owner and broker
of Leading Edge Realty, and I thought
it was important to combine companies
to become stronger through cost saving,
consolidation and at the same time gain
market share,” Rose said.
The combination of the firms, which
specialize in new homes sales, will now offer even more services to builders, as well
as make Rose & Womble the largest new
homes division in the Southeast.
Ayers will continue serving his builder
and developer clients as the regional vice
president of sales with Rose & Womble.
Rose & Womble is headquartered in
Virginia Beach. For more information,
visit www.roseandwomble.com.
buyers in any market condition. We have a long
history of providing consistent and dependable
service. As we’ve done for over 126 years, we
will continue to provide the personal attention
that your clients deserve.
Call one of our mortgage professionals for details.
Virginia Beach Branch
4429 Bonney Road
Suite 124
757.321.3100
Chesapeake Branch
501 Independence Pkwy
Suite 103
757.321.3131
No Surprises.
fultonmortgagecompany.com
Equal Opportunity Lender. Member FDIC. Subject to credit approval.
June 2009
23
Realtors tackle green marketing
The TBA Green Building Council recently asked me to address,
“How do Realtors find out about and market green building and
the related products?”
The reality is the agent base needs to be more educated about
the immediate benefits of a green home.
To that end, The National Association of Realtors recently
created a Green Designation to provide Realtors with knowledge
and awareness of green building principles applied in residences,
By Brenda Reid
Guest columnist developments and communities to help consumers in purchasing,
retrofitting and operating green properties. It further encourages
VA LIC. 035926A
NC LIC. 13521-U
H&P Electric Co.
Residential electrical
Kim Curling
757-749-9231 or [email protected]
Realtors to be an advocate for green
principals in the design.
Some of the Realtors who earned this
designation told me the biggest challenge marketing a green home is the perception is that although green may mean
saving the Earth — it’s more expensive.
A profile of buyers by the National
Association of Realtors found some
green features are important to buyers:
Heating and cooling costs were considered very important by buyers across all
regions polled — 43 percent of buyers in
the south and 47 percent in the northeast.
Other features including energyefficient appliances, lighting, landscaping
and environmentally friendly community features were cited as “very important”
to buyers in the south.
Here’s how you can help:
• Support education with local Realtor
boards. If you’ve had an agent sell your
homes, consider sponsoring him for his
Green Designation, which costs $295.
• Work with suppliers to offer third-party
education seminars for consumers and
Realtors.
• In your homes, provide a flyer demonstrating the return on investment
by showing real utility bill savings in
dollar amounts, as well as showing as
many benefits and savings as possible.
Meanwhile, Realtors are lobbying REIN
to include a field in the search criteria that
will identify EarthCraft and Energy Star
homes or other green certifications. You
can add your voice to this effort.
Remember, consumers are motivated by
what will help them and their family first
… then their community …and then the
world. We have to bring it home for them.
Focus on how we’re making someone’s
life better and remove the myth that
green building is more expensive.
Let buyers know everyone deserves a
better quality of life.
Brenda Reid is director of New Homes
at William E. Wood & Associates Realtors. She also serves as an associate member
of the TBA Board of Directors.
24
June 2009
Use the new
tax credit to
help spur
home sales.
First-time home buyers who buy
between Jan. 1 and Nov. 30, 2009,
may qualify for up to an $8,000 tax credit —
and even better, unlike last year’s credit,
they don’t have to pay it back.
Find the resources you need to get the word
out to consumers and your sales team at:
www.nahb.org/taxcreditmaterials
Learn more about the credit at:
www.FederalHousingTaxCredit.com
June 2009
25
Big Picture
TBA President Pete
A. Kotarides, far left,
witnesses the proclamation of Safety Week in
the City of Norfolk with
building official Lynn
Underwood, at the
podium. June is National
Safety Month, and a
perfect time to review
your company’s safety
procedures.
Virginia Beach Mayor Will Sessoms
speaks at the TBA Board of Directors
May meeting about the opportunities
for development that would accompany
a light rail in Virginia Beach.
Builder Breakfast sponsor American Insulation Service pose with
TBA President Pete A. Kotarides, front right, after presenting a
builder rebate plan to the group. Pictured are, front, from left, John
Del Corso, Richard Johnson, Corinna Escalet; back row, Andy
Momper, Chad Momper, Mike Momper and Ray Rieve.
26
June 2009
(top) Homearama builders spent the afternoon of April 23 in the
TBA boardroom with associate members. The associates were
given 3 minutes with each builder to discuss their services and how
they can be of help with the Homearama houses. (below) Mary
Dolph-Simpson discusses faux finishes with Igor Tupoyskiy during
Let’s Make a Deal in the TBA boardroom.
Show consumers you’re serious
about being green
By Sara Steil
I
t’s easy to be torn when it comes to knowing what’s
really green and what’s been greenwashed these
days. So imagine how difficult it can be for consumers.
To help consumers become more educated, TBA is
launching GreenHomeOnline.org, an online, ongoing trade
show for industry professionals that will feature green products and services.
Members of the Tidewater Builders Association’s Green
Building Council championed the site to serve as a consumer
resource for learning how to live green, as well as locate green
companies throughout Hampton Roads that can help consumers build, remodel or decorate to save energy, the environment — and the consumer’s budget.
So what’s in it for your business?
For a flat fee, you can make sure your business is featured
in this one-stop-shop for everything green for consumers.
When consumers visit the site, they will have an opportunity to enter the show as if they were at a live show. Just walk
through the tent and experts from Tidewater Builders Association will be at their disposal.
In addition to meeting the experts, consumers will be able
to obtain information they need on anything green— from
how the tax credits will affect them, to what they can do in
several areas to be more environmentally friendly, from installing a geothermal heat pump and solar panels to reducing
their energy bills with proper insulation and landscaping.
Your business will be able to have a landing page for consumers with interactive blogs and videos, as well as links to
your company’s Web site and e-mail address for follow-up
questions. It will also feature the latest in green information.
If you’re interested in being featured on this site or for
more information, please contact JoAnn Lucero at 305-9024
or [email protected].
What is a Spike?
Spike members are Association members who have recruited six new members in a two-year period. There are different levels of
Spike status that offer members many levels of recognition at local and national events.
As a Spike you can expect an invitation to the biggest party of the year – the Spike Party/Directors Reception at the International
Builders’ Show. You’ll also receive unique and valuable rewards for each level of achievement. These include lapel pins, plaques,
trophies and more! Locally, Spikes are recognized at TBA golf-outings, the TBA picnic and other events throughout the year.
Highest Total Credits: Accumulation
1. Chuck Miller, Miller Custom Homes720.50
2. John Scanelli, S&S Real Estate577.50
3. Tom Huxtable, East Coast Appliance Inc.514.50
4. Jeff Wermers, Wermers Development Inc.302.50
5. Jeff Ainslie, The Ainslie Group263.50
6. Chip Iuliano, Area Builders of Tidewater247.00
8. Ted Yoder, Monarch Bank231.50
9. Cathy Lockwood, Monarch Bank223.00
10. Joe Rover, East Coast Appliance209.50
2009 Highest Total Credits
1. Chuck Miller, Miller Custom Homes29.50
2. Tom Dye, Ferguson Enterprises Inc.19.00
3. Pete. A Kotarides, Kotarides Builders LLC13.00
4. John Scanelli, S&S Real Estate12.50
5. Ted Yoder, Monarch Mortgage09.00
6. Chip Iuliano, Area Builders of Tidewater08.50
7. Tom Huxtable, East Coast Appliance Inc.08.00
8. Suzanne Waterfield, BB&T of Virginia
07.00
9. Skip Ferebee, Beskin & Associates06.50
10. John Ainslie, The Ainslie Group06.00
2009 Highest New Member Credits
1. Tom Dye, Ferguson Enterprises Inc.16.00
2. Pete A. Kotarides, Kotarides Builders LLC12.00
3. Reid Pocock, Dominion Building Group06.00
4. Allen Loree, Allen Loree Homes05.00
5. Bill Halprin, S.L. Nusbaum Realty Co.04.00
6. Mike Newsome, Clark Whitehill Enterprises04.00
7. Chip Iuliano, Area Builders of Tidewater02.00
8. John Brogan, Floorcrafters02.00
9. Brian Kelly, Automatic Leasing Service02.00
10. Chuck Miller, Miller Custom Homes02.00
2008 Highest Retention Credits
1. Chuck Miller, Miller Custom Homes27.50
2. John Scanelli, S&S Real Estate12.50
3. Ted Yoder, Monarch Mortgage09.00
4. Tom Huxtable, East Coast Appliance08.00
5. Suzanne Waterfield, BB&T of Virginia
07.00
6. Skip Ferebee, Beskin & Associates06.50
7. Chip Iuliano, Area Builders of Tidewater06.50
8. John Ainslie, The Ainslie Group06.00
9. Stephen Quick, Stephen Alexander Homes05.50
10. Jeff Wermers, Wermers Development Inc.05.50
If you’re interested in learning more, contact Stacey Turner at 757-305-9042, to start down the path to
becoming a Spike! Visit www.tbaonline.org to view a full listing of TBA Spike Members.
June 2009
27
TBA Calendar
june
8 TBA Executive Committee meeting
TBA Board of Directors/Cornerstone Foundation Mid-Year Reception
Steinhilber’s Thalia Acres Inn
9 Remodelers Council
12 TBA Festival in the Park,
Chesapeake City Park
16 TMHC Associates meeting
17 TMHC Committee meeting
18 Developers Council meeting
21-24
HBAV Annual Convention
22 HBAV Board of Directors meeting
juLY
2 Green Building Council meeting
14 New member orientation
Remodelers Council meeting
15 TMHC Executive Committee meeting
New Members
Builders
Equity Builders of Tidewater Inc.
Builders/developers; remodeling/restoration/
building repair
Karyn H. Bryan..................... (757) 410-3067
www.tidewater.equitybuilders.com
Associates
Ameriprise Financial Services Inc.
Financial planning/investment management;
insurance (employee benefits)
Don Meredith........................ (757) 552-8429
www.ameripriseadvisors.com
Wood & Associates, William B. Magnolia Run Apartments
Property/condominium management; real
estate
Shauna Firman..................... (757) 479-0549
Here To Stay
Builders
Ashley Associates Inc.
Crace-Johnson Construction Corp.
Dailey Nestor Homes LLC
Archimages
Advertising/public relations; other services
Architectural illustration/marketing graphics
Jenny Darden....................... (757) 567-4587
www.dardenarchimages.com
Gallagher Associates
Burton Enterprises II Inc.
Roofing; siding
Steve Evans......................... (757) 427-3344
S.B. Ballard Construction Co.
Carousel Signs & Designs Inc.
Masonry & brick subcontractors; signage
Jay Foley.............................. (804) 620-3200
J.M. Froehler Construction
Legacy East LLC
Powell Development LLC
TCI Inc.
The Lawson Cos.
Associates
Artcraft Management Inc.
Excel Paving Corp.
Paving
Preston Thomas................... (757) 466-1855
B&T Kitchens Cabinets & Countertops
23 TMHC Associates Showcase/awards banquet/RAM graduation,
Virginia Beach Convention Center
Kelly Karpets Inc.
Carpeting; flooring
Mark Blythe.......................... (757) 497-8884
Carpet World of Virginia Inc.
Advertisers’ Index
Kempsville Countertops & Cabinets
Baths; closets/storage systems; counter
tops; kitchens; marble (cultured & imported),
stone, granite
John Wheary........................ (757) 466-1202
www.kempsvillecountertops.com
Decked Out Inc.
Mini Price Self Storage
Moving and storage
Dana Hicks........................... (757) 468-7509
Jerry’s Heating & Cooling Inc.
Shaw Industries Inc.
Flooring
Mark Lusk............................ (757) 650-7713
www.shawfloors.com
Kitrells Floor Service
16 Developers Council meeting
21 TMHC Associates meeting
Ainslie Group.......................................... 13
BIIA....................................................... IBC
East Coast Appliance............................. 17
Ferguson Enterprises............................ FC
Fulton Mortgage..................................... 23
H&P Electric........................................... 24
Hill, L. R.................................................. 21
International Jet Charter . ...................... 24
Jobsite Online........................................... 9
Marketplace............................................ 22
McKown Pressure Washing................... 12
Miss Utility................................................ 5
ProSource............................................... 13
RSVP...................................................... 17
Sprint...................................................... 18
Superior Equipment Sales ....................... BC
Sykes, Bourdon, Ahern & Levy P.C............ 17
Tidewater Home Funding........................... 24
TowneBank.................................................. 19
28
June 2009
Basnight Land & Lawn Inc.
Beach Ford
Cleghorn Design Service
Coastal Hardware
G&G Service & Contracting Inc.
Hometown Remodeling
House Details
iLevel by Weyerhaeuser
Johns Brothers
Kitchen Design Inc.
Premier Plumbing
Ready Enterprises Inc.
Reliance Contractory Supply LLC
Superior Fitness Systems
Other services
Fitness equipment
Jed Sherman........................ (757) 483-8347
Verizon Wireless Virginia Beach
Amphitheater
Other services; recreational/leisure
Concert venue/entertainment
Karen Vaiden.......................(757) 368-3017}
www.vwvba.com
Riverside Brick & Supply Co.
SMI Mechanical
The Pool Guyz
The Virginian-Pilot
Tile Essentials
Virginia Beach Marble Co. Inc.
Walsh Tops Inc.
Wolcott Rivers Gates
Is it time for a CHANGE?
Does your policy
provide the coverage
you really need?
Before you renew your General Liability or Workers’ Compensation
policies, have your agent call Building Industry Insurance Association, Inc.,
to compare coverage & costs.
Building Industry Insurance Association, Inc. (BIIA) offers our members
more value for their money. The company is endorsed by Home Builders
Association of Virginia, and is a wholly owned subsidiary of Tidewater
Builders Association. We understand the difficulties facing the building
industry & are dedicated to supporting your business. BIIA offers flexible
payment options that allow you to track your payments with your work flow on a monthly basis.
B u i l d i n g I n du st ry In su ran ce A sso ciat io n , In c.
w w w. v a b u i l d ersin su ran ce.co m • 757- 420- 3022
June 2009
29
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