August 2011 • www.westfloridabuilders.com 1

August 19-21 at the Pensacola Civic Center

Home Builders Association of West Florida • August 20112 Home Builders Association of West Florida2

August 2011 • www.westfloridabuilders.com 3www.westfloridabuilders.com 3

2011 Leadership

Board

2011 Home Builders Association of West Florida

Board of Directors

Builder MembersPam Caddell, Gulf+Atlantic ConstructorsMiller Caldwell, III, CCG Design Builders

Jeff Godfrey, Paragon Custom HomesDarrell Gooden, Gooden Homes

Robert Harris, Adams HomesDoug Henry, Thomas Home Corporation

Doug Herrick, Coastal ICF Concrete Wall SystemsShelby Johnson, Johnson Construction Co.

of PensacolaRon Mangum, Residential Renovation Company

Scott McCartney, 1st Choice Home ImprovementsBryan Moore, BRM Residential Homes

Jennifer Rigby, Gleaton & DeMaria Commercial Development

Kevin Russell, Russell Home BuildersSteve Sessions, Sessions Contractors Group

Keith Smith, Keith Smith ConstructionTodd Stafford, Heaton Brothers Construction

Ron Tuttle, Bennat, Inc.Chris Vail, Urban Infill Corporation

Thomas Westerheim, Westerheim Properties

Associate MembersAngela Carter, Gulf Power Company

Bret Cornett, ProBuildRick Endsley, Builders Specialty SupplyJill Grove, Energy Services of PensacolaJohn Hattaway, Hattaway Home Design Tom Hammond, Hammond Engineering

Ron Harper, GCS Building SolutionsTowana Henry, Surety Land Title

Blake Jochum, All Pro SoundPat Kozma, Jenkins Brick & Tile Company, LLC

William Merrill, Merrill, Parker, ShawChristopher Moorhead, Coastal Bank & Trust

Bernie Mostoller, The Mostoller GroupRic Nickelsen, Whitney National Bank

David Redmond, PrimeLendingGary Sluder, Gene’s Floor Covering

Doug Whitfield, Doug Whitfield Residential DesignerJayer Williamson, Williamson Electrical Company

Brent Woody, Advanced Roofing and Waterproofing

John Carrell, Gulf Power Co., Remodelors Council ChairAngie Cooper, Gulf Power Co., Auxiliary Council ChairJim Harris, Coastal Bank and Trust, Membership ChairNatasha Reynolds, ESP, Green Building Council ChairNewman Rodgers, Custom Builders Council Chair

Ex-Officio Members:Keith Furrow, Pensacola Association of Realtors

Billy MooreImmediate Past President

Southern Home & Construction

Eric WittTreasurer

Kenneth E, Witt Carpentry

Luke Shows1st Vice President

Shows Construction

Judy GundFinancial Officer

Saltmarsh, Cleaveland & Gund

Steve Geci2nd Vice President

Geci & Associates Engineers

Newman RodgersSecretary

Newman Rodgers Construction

Rod Hurston3rd Vice President

Fisher-Brown Insurance

Stephen MoorheadLegal Counsel

McDonald, Fleming, Moorhead

CornerstoneThe official magazine of the

Home Builders Association of West Florida

4400 Bayou Blvd., Suite 45, Pensacola, Florida 32503

(850) 476-0318www.westfloridabuilders.com

Cornerstone is published for the Home Builders Association of West Florida by Nicholson Publishing and distributed to its members. Reproduction in whole or part is prohibited without written authorization. Articles in Cornerstone do not necessarily reflect the views or policies of the HBA of West Florida. Articles are accepted from various individuals in the industry to provide a forum for our readers.

Tina MonieImmediate 2nd Vice President

KJM Surveying

Russ ParrisPresident

Frameworks, LLC

Home Builders Association of West Florida • August 20114

Cornerstone, the monthly publication of the Home Builders Association of West Florida serving Escambia and Santa Rosa Counties, is published monthly, twelve (12x) per year. Send address changes to HBA of West Florida, 4400 Bayou Boulevard, Suite 45, Pensacola, Florida 32503-1910. Cornerstone, is published in the interests of all segments of the home building industry and is distributed to its members and others associated with the HBA of West Florida. HBA of West Florida and Richard K. Nicholson Pub., Inc. does not accept responsibility for, or endorse any statement or claims made by advertisers or authors of any articles. Every effort has been made to assure accuracy of information, but authenticity cannot be guaranteed. No part of this publication may be reproduced without the written consent of Home Builders Association of West Florida, Copyright ©, 4400 Bayou Boulevard, Suite 45, Pensacola, Florida 32503-1910, 850.476.0318. Advertisers and advertorials in Cornerstone do not constitute an offer for sale in states where prohibited by law.

In ThisIssue

Cover Story2011 Home & Product Expo .................................................................... 6

Expo Sponsor Highlights .............................................................. 6, 7, & 8

2011 Home & Expo Exhibitor’s ............................................................... 7

CORNERSTONE COLUMNS

President’s Message: Want to Get the Economy Moving? Then Making Housing a National Priority ............................................... 5

FEATURED STORY

Tight Mortgage Lending Seen as Biggest Obstacle to Strong Housing Recovery ................................................................... 13

FHBA News: The Latest News on the State of Florida Issues ......... 14, 15

What Has FHBA Done for You Lately? ................................................ 16

ASSOCIATION NEWS

2011 HBA of West Florida Leadership .................................................... 3

HBA Calendar of Events .......................................................................... 9

HBA Council News: Custom Building Council, Green Council and Auxiliary Building Councils ............................. 10, 11

HBA News; Membership Committee News! ......................................... 12

Join HBA on Facebook ........................................................................... 15

HBA Membership News, Welcome New Members, Thanks for Renewing, Time to Renew, & Don’t Lose Your Membership ................ 17

Spike Club Update .................................................................................. 18

DEPARTMENTS INDEX

Next Issue Deadlines ……………..............…...........……. 4, 9, 12 & 18

Advertisers Index, Web, & Email Addresses ………….....…………… 18Magazine Design & Layout by warren wight creative services

www.ww-cs.com

Cornerstone

David Peaden IIExecutive Director

dpeaden@hbawf.com

Alecia OvermanAccounting Manageralecia@hbawf.com

Amy LordMembership/Marketing Director

amy@hbawf.com

Next Issue: September 2011Edit: August 1, 2011

Space: August 15, 2011Materials: August 22, 2011

August 2011 • www.westfloridabuilders.com 5

President’sMessage

Russ Parris

Want to Get the Economy Moving?

Then Make Housing a National Priority

“One of our most important efforts will

be to give housing renewed prominence and assure that the public, Congress, policy makers in Washington and public officials throughout the

country recognize its importance.”

Uneventful national jobs reports are continuing to state that the national economy is lag-ging. There is one industry that can get people back to work and that is the construction industry. If our elected leaders would make housing a national priority, it would go a long way in getting our nation out of this economic malaise. What will it take to achieve this ambitious goal?

Give Housing Renewed Prominence One of our most important efforts will be to give housing renewed prominence and assure that the public, Congress, policy makers in Washington and public officials throughout the country recognize its impor-tance. In doing so, Congress needs to restore the flow of acquisition, development and construction (AD&C) credit to the housing sec-tor to help spur job growth, support a recovery in the housing market and keep the economy moving forward. Reps. Gary Miller and Brad Miller are championing a legislative solution aimed at ending the freeze in housing production credit that has forced countless home building firms across the nation to shutter their doors, result-ing in grave repercussions for job growth and the overall economy. The credit crunch has taken an enormous toll on the nation’s economy, with job losses felt most acutely in the housing sec-tor, where more than 1.4 million construction workers have been idled since 2006. Factoring in the effect of the housing plunge on industries that provide materials and services to home builders, the total impact of the housing slump has been the loss of more than three million jobs and $145 billion in wages in all housing-related industries. H.R. 1755, the Home Construction Lending Regulatory Improvement Act of 2011, would address specific regulatory obstacles to the credit needs of the nation’s home builders. To rectify this situation, the legisla-

tion would grant authority and guidance to federal and state banking regulators to ensure that financial institutions that provide financing to America’s home builders are permitted to make loans, restore liquidity and provide stable financing to the residential housing sector.

Economic Impact of Housing Economists at the National As-sociation of Home Builders estimate that the one-year local impacts of building 100 single-family homes in a typical metro area include $21.1 million in local income, $2.2 million in taxes and other local government revenue, and 324 local jobs. The employment effects extend beyond the home building industry. About half of the jobs are in construction, with the other 50 percent creating employment opportunities

in industries ranging from production and sales of home furnishings to service providers such as real estate attorneys and landscapers. Those 100 new homes also provide the community with additional, annually-recur-ring impacts of $3.1 million in local income, $743,000 in taxes and other revenue for local governments, and 53 local jobs.

Enact Pro-Housing Legislation Because laws originating in Washing-ton, D.C. often negatively affect the cost and availability of housing, we need to create an awareness of how overregulation and unneces-sary requirements affect housing production and thereby weaken the entire economy.

Pursue Regulatory and Judicial Changes As members of our industry know only too well, government regulatory agencies can increase housing costs with little oversight from elected officials and little concern for homeowners and renters. We are dealing with EPA Lead Paint regulations as well as OSHA Fall Protection regulations that can be overly burdensome to the industry. There has to be a better way to make regulations more meaning-ful and practical. There are a lot of things learned from the housing boom and the aftermath. We are still seeing the aftershocks and will for some time to come. But we must get our elected leaders to understand that housing is the viable economic engine that can put engineers, suppli-ers, sales people, appliance manufactures, and many other industries back to work.

Home Builders Association of West Florida • August 20116

CoverStory

New Ideas and Innovation on Display

at the 2011 Home & Product Expo

A much anticipated event for area homeowners and home-buyers, the 2011 West Florida Home & Product Expo, set for August 19-21, at the Pensacola Civic Center. Over 20,000 square-feet of build-ing, remodeling, products and services are on display from over 80 local and regional busi-nesses. "If you are looking to remodel or if you're thinking about building a new home, then this is the show for you," said Expo Show Manager Alecia Overman. "In addition, at-tendees can learn a lot about new products and services from knowledgeable exhibitors that will enable them to make wise decisions when it comes to buying products for their home." The Home & Products Expo is a one-stop source for information from air condition-ers, ICF construction and flooring materials

to homes insulation, energy efficient windows and doors, pool and patio furniture, and green products and services, just to name a few. "The Expo had built a solid reputa-tion for providing the best in building products and services, said Overman. “We are pleased to offer How To seminars on Saturday and Sunday as well. For people interested in reach-ing building professionals who treat you with courtesy, and will take time to answer ques-

SHOW TIMESFRIDAY, AUGUST 19 1:00 p.m. – 6:00 p.m.

SATURDAY, AUGUST 20 10:00 a.m. – 6:00 p.m.

SUNDAY, AUGUST 21 12:00 p.m. – 5:00 p.m.

Entry fee: $5.00. Kids Free.

Free ParkingSunday only from 3-5 p.m.

Free Admission

tions, then the Expo is the place to be." The Expo is sponsored by 1st Choice Home Improvements, Aqua Pool & Patio, En-ergy Service of Pensacola, Gulf Power/Earth-Cents, Pensacola News Journal, Pensacola Home & Garden, WEAR TV 3, My 35 WFGX, Cox Media, Media Com, and WXBM 102.7. For more information, contact the Home Build-ers Association of West Florida at 476-0318 or go to www.HomeExpoPensacola.com.

August 2011 • www.westfloridabuilders.com 7

CoverStory

1st Choice Home ImprovementsAcorn Construction, Inc.Advanced Insulation of NW FL, Inc.Advanced Roofing and Waterproofing, LLCAlpha Closets & Company, Inc.American Alarm & Audio, Inc.Aqua Pool & Patio Co.At Home ContractingB & C Nursery, Inc.Bath Fitter of PensacolaBetter Business Bureau of NW FloridaBlue Haven PoolsBoutwell's Air Masters, Inc.Bright House NetworksCalifornia ClosetsChief PurificationCoastal ICF Concrete Wall SystemsCox Communications:Vancil, KentDean's Solid Surfacing, Inc.Décor Design Center Inc.

Defined Interiors, Inc.Direct Buy - Emerald CoastDoors By DesignEdward Jones – Mike UtkeEmerald Coast Mosquito Misting and PestEnergy Services of PensacolaFerguson Bath, Kitchen & Lighting GalleryFoamSeal Insulation Systems, Inc.Folkers Window CompanyForce 5 Walls, Inc.Gateway Lighting and FansGene's Floor CoveringGoldin Metals, Inc.GraniteworxGulf Coast Air CareGulf Coast Pool & Spa, Inc.Gulf Coast RugsGulf Power CompanyHometown Contractors, Inc.Invisi-Guard Window Tinting

Jansen Quality Construction, Inc.Jenkins Brick & Tile Company, LLCKay's Prestige Kitchen & BathLee Mechanical & PlumbingMajors Home Improvement, LLCMathes Lighting & LampPen Air Federal Credit UnionPure Essentials, LLCPro-Tech Concrete CoatingsRebuild Northwest FlordiaRock Solid SurfacesRTS All American Garage Doors, Inc.ScentsySelect ICFCompass Solar EnergySouthern Breeze One Hour Air ConditioningSunbelt Building ProductsTitan Specialty Construction, Inc.Uncle Bob’s Self StorageUrban Infill CorporationW. R. Taylor & Co.

Expo Exhibitors as of 7/18/11

Expo Sponsor Highlight

Gulf Power Company Gulf Power’s new incen-tives make energy efficiency more affordable. Gulf Power customers now have more than 25 EarthCents programs to choose from, many with cash incentives to help cus-tomers make their homes and businesses more energy efficient. With EarthCents, custom-ers will have many options to help them save money and energy. Helping our customers save by using energy more efficiently is important to Gulf Power, and these new programs can help. With

many new incentives, energy efficiency is more affordable than ever and easy to do. EarthCents programs feature some-thing for every customer from homeowners to renters, quick fixes to great investments. Every customer can complete a free Energy Checkup online or have an energy expert do an onsite analysis that will help identify and prioritize steps to improve energy efficiency and recom-mend EarthCents programs that match that plan. Customers can learn more about these offers and sign-up for incentives at www.gulfpower.com/earthcents.

One Energy Place Pensacola, FL 32520www.gulfpower.com

Expo Sponsor Highlight

Energy Services of Pensacola Since 1973, Energy Ser-vices of Pensacola (ESP) has provided Escambia County with natural gas – the cleanest and most ef-ficient form of energy available. To encourage energy conservation and provide the highest degree of consumer comfort, ESP offers the Comfort Plus home program – a concept of home construction and improvement. Accord-ing to the Florida Model Energy Code for new

construction, natural gas provides homes with a better energy Performance Index than electricity. Whether you are building a new home, or remodeling an older one, natural gas is the most cost-effective form of energy. For detailed information on rebates, gas piping and Comfort Plus building guidelines; call the ESP Marketing Department at (850) 436-5050. ESP is a member of the Home Build-ers Association and the HBA Remodelor’s Council.

1625 Atwood Drive Pensacola, FL 32514 www.espnaturalgas.com

Home Builders Association of West Florida • August 20118

New Member Profiles

ground gunite pool construction division, and already have referrals from happy customers in beautifully designed and built pools. At Aqua Pool and Patio we do it all! Our long history and commitment to the qual-ity and service we provide to our customers cannot be matched by any other pool company.

Aqua Pool and Patio has been the #1 full service, swim-ming pool company on the Gulf Coast for over 50 years. With a knowledgeable and experienced staff, we are able to take care of all your swimming pool and patio needs. We maintain or provide ser-vice to 90 percent of all commercial pools and over 550 residential pools in the Pensacola/Ft. Walton Beach area. Our services are available from Gulf Shores, Alabama to Panama City, Florida. In 2011 we added a designer Liz Taylor, formerly of Duh, to our staff. She has created a showroom full of beautiful outdoor furniture and unique accessories. Liz is avail-able to assist customers with furniture selection and patio design. We also launched our new in-

Aqua Pool and PatioExpo Sponsor Highlight

5904 N. Old Palafox St. Pensacola, Florida 32503

(One blk. South of Airport Blvd.)

850-432-9929

www.aquapoolandpatio.com

Like us on Facebook: www.facebook.com/aquapoolandpatio

Stop by our Show Room: Monday- Friday 8:00 a.m. – 5:00 p.m. and

Saturday: 9:00 a.m. – 3:00 p.m.

When Steve Smart and Scott McCartney incor-porated their company, 1st Choice Home Improvements, Inc in July of 1999, they brought over thirty-five years of combined experience from working for a national home improvement company. Their dream became a plan and now over 12 years later they continue to be identified as one of the premier home improvement companies in the United States. The Home Improvement Industry journal, “Qualified Remodeler” has honored 1st Choice as one of the top 500 companies in the United States for 9 years. The Northwest Florida Better Business Bu-reau has given us a A+ rating in addition to their business accreditation rating. We are proud to have received this honor for over 12 years. When you are considering im-provements to your home, 1st Choice is a nationally recognized company specializ-

1st Choice Home ImprovementsExpo Sponsor Highlight

ing in window replacements, vinyl siding, and hurricane protection including hurricane impact windows, cabinet restoration, patio enclosures, screen rooms, & sunrooms. Please check out our references section above for comments from some of our many happy customers! We appreciate the trust that all of our customers have given to us and look forward to building new friendships in the future by providing quality work and materials at a rea-sonable price.

Mission Statement:Provide our customers with superior prod-•ucts and unsurpassed customer service at a fair price. Ensure that the highest standards of customer care are maintained without compromising integrity, honesty, and respect for the consumer’s property and well-being.Continually commit ourselves to achiev-•ing customer satisfaction as our first and only choice.1st Choice Home Improvements services a •ten county area from Northwest Florida to Southeast Mississippi 1st •Choice Home Improvements

445 Corday Street, Suite 1Pensacola, FL 32503

Call Toll Free at 1-888-989-3244

Escambia & Santa Rosa County: (850) 476-8887

Okaloosa & Walton County: (850) 244-8900

Escambia & Baldwin, AL: (251) 943-8909

Mobile, Alabama: (251) 679-1600

MS Counties: George, Harrison, Jackson: (888) 989-3244

August 2011 • www.westfloridabuilders.com 9

FHBANews

Mark Your Calendar!

Auxiliary CouncilMeet on the 2nd Tuesday of each month.Custom Builders CouncilMeet Quarterly starting in January.Green Building CouncilMeet on the last Wednesday of each month.Governmental AffairsMeet on the 1st Tuesday of each month.Membership CommitteeMeet on the 2nd Thursday of each month.Remodelor’s CouncilMeet on the 1st Thursday of each month.Board of DirectorsMeet on the 3rd Tuesday of each month.

August 9 Auxiliary Council Meeting at Lakeview

August 10 -11 Continuing Education at HBA

August 19 -21 Home Expo

August 31 Green Building Council Meeting at Grand Marlin

September 15 Meet the Builder at New World Landing

September 23 General Membership Meeting at Florida Insurance Agency

October 6 King of the Wing at Cordova Mall

November 17 HBA Fall Golf Classic at Stonebrook

Interested in sponsoring a General Membership Meeting?Contact Amy Lord at 850-476-0318 for more information!

For further event details, please visit our website:

www.westfloridabuilders.com Please note that dates and locations are subject to change.

To advertise, call Richard Nicholson

561.843.5857rknichent@aol.com

NEXT CORNERSTONE

ISSUE:

Sept. 2011

Don’t Forget HBA of West Florida Home

& Product ExpoAug. 19-21st

at Pensacola Civic Center!

call HBA Office at 850-476-0318 for more info

For future upcoming events, please call the HBA office at

850.476.0318 and view the calendar below. Thank You!

Home Builders Association of West Florida • August 201110

HBA CouncilNews

Auxiliary Council July General

Membership Meeting The Auxiliary Council July General Membership Meeting was hosted on Tuesday, July 12 at the HBA Office. The Council was pleased to welcome Guest Speaker Margaret Araujo, owner of The International Boutique and Gift Shop on Pensacola Beach. Margaret talked to the council about the history of fashion and current fashion trends. As a way to illustrate these trends, Margaret put together a surprise fashion show for the ladies. Thank you Margaret for all of the wonderful ideas, discounts, and door prizes! To view clothing and accessories from The International Boutique and Gift Shop please visit www.theinter-nationalboutique.com.

Above: Models L to R : Katy Ferguson, HBA Intern; Melissa Sanspree and Debbie Sanspree of Keller Wil-liams Realty; Amy Lord, HBA; Alecia Overman, HBA; and the ladies from International Boutique

Top Left: Tina Pace of Gulf Power with her door prize.

Middle Left: Lisa Hudson, Synovus Mortgage with her door prize

Bottom Left: Attendees at the HBA Auxiliary July Meeting

August 2011 • www.westfloridabuilders.com 11

HBACouncilNews

Green Building Council June Meeting

The HBA Green Building Council held its June meeting onsite the brand new $316 million dollar ECUA Central Waste-water Reclamation Facility in Cantonment. A tour of the plant was led by Mr. Pat Byrne, Executive Director of Utility Operations. The Facility has earned numerous awards for its environmentally friendly design. For more information on joining the Green Building Council please contact Amy Lord, Council Liaison at 476-0318.

Above: Tour Attendees L to R: Jay Overman of Pensacola Jobs.com; Green Building Coun-cil Chair Natasha Reynolds of ESP; Alecia Overman of HBA; ECUA Public Information Officer Jim Roberts; Pat Byrne of ECUA Christine Swails and Keith Swilley of Gulf Power; Wilma Shortall of Mortgage America; Shelby Johnson of Johnson Construction; Kelly Moore of iGreen Construction; Adam Sammis of Irby Engineering; Newman Rodgers of Newman Rodgers Construction; Diana Melton of Mortgage America, and Margaret Hostetter of iGreen Construction.

Above: Pat Byrne ECUA Executive Director Utility Operations

From the Chair: Natasha Reynolds…for the Certified Green Professional I would like to thank HBA member Shelby Johnson, of Johnson Construction of Pensacola, for provid-ing the instruction for the Green Certification Professional Courses. Shelby traveled to many places to take the National Association of Home Builders Green Certifi-cation Instructor Courses to be able to teach these all-important classes to our member-ship. Shelby has been an important part of the Green Building Council having been a charter member and a past president. As a General

Contractor, Shelby has been serv-ing our local community since 1994. His company specializes in renovations, additions, and his-torical renovations. He currently serves on the Board of Directors of the Home Builders Association, and the Green Build Council. He truly believes in promoting green construction techniques and edu-cation. In his spare time, Shelby enjoys serving on the Board of Di-rectors for the Bill Hargraves Fam-

ily Fishing Rodeo that raises money to benefit the local Ronald McDonald House. Shelby is also a husband and father of an 18-year old son and a 7-year old daughter. Every chance he gets he enjoys camping and fishing with his family.

Shelby Johnson, Johnson Construction of Pensacola

Home Builders Association of West Florida • August 201112

HBA News

The membership com-mittee held a lunch meeting at the HBA office to welcome new members that joined HBA during our 2011 Membership Drive. Attendees learned about HBA and while networking and learning about other members’ businesses.

Right: Diana Quigley of Pamal Broadcast-ing (WXBM and Soft Rock); Membership Committee Chair Jim Harris, Coastal Bank and Trust; Lee Mason and Johnny Fayard of Pensacola News Journal; Rick Galimore and Bill Daniel of Mobile Lumber; John Agnew and Jason Smith of Legacy Building Supply.

Membership Committee

Interested in Sponsoring a General Membership

Meeting?

Help support our organizationand get great

exposure for business!

Contact Amy Lord at 850-476-0318 for more info!

To advertise, call Richard Nicholson

561.843.5857rknichent@aol.com

NEXT CORNERSTONE

ISSUE:

Sept. 2011

August 2011 • www.westfloridabuilders.com 13

FeaturedStory

Tight Mortgage Lending Seen as Biggest Obstacle to Strong Housing Recovery

Housing and the economy won’t stay caught in their cur-rent “soft patch” much longer and are slowly headed for higher ground later this year and in 2012 and 2013, but conditions would be considerably brighter if leaders in Washington were adequately addressing what needs to be done to end the housing crisis, Kenneth Rosen, chair of the Fisher Center for Real Estate and Urban Economics at the University of Califor-nia at Berkeley, told an audience in June in San Francisco. The gross domestic product is likely to grow a subpar 2.4% this year compared to 4.0% “if housing were running on all four cylinders,” he said, and growth is likely to hit 3.0% for 2012, still below the 4% to 5% range that is typical for the early stages of an upturn. A source of nagging concern for consumers, the job market has a long way to go, he said, with only about 2 million private-sector jobs gained following a loss of 8.8 million during the recession. Job creation, which slowed down this spring, should be back on track in the fall, he said, and monthly gains this year should average between 175,000 and 200,000, roughly twice the pace of 2010. That would move the unemployment rate down to 8.9% by the end of this year and 8.1% at the close of 2012. Unfortunately, the construction industry, which accounted for one-fourth of the nation’s job losses in a recession that was three times worse than any that preceded it, won’t be staging a comeback this year, he predicted. If the economy bounces back in this year’s third and fourth quarters, as he expects, Rosen said that 10-year Treasuries should start moving back toward 4%, from about 3% cur-rently, and subsequently rise into the 4%-5% range and higher. The Federal Reserve should now be pushing its federal funds interest rate up to 2.5%, from close to zero, he said, noting that the central bank’s current stance is “not helping investors and savers,” who are receiv-ing next to no interest, and is underestimating inflation.

Tight Mortgage Lending Standards At this stage, Rosen said, single-family housing is struggling to recover because of overly tight credit conditions, and housing ought to be leading the economy forward. But

“that’s not happening, as if no one in Washing-ton cares anymore.” (In a July 7 Washington Post news story on a town hall meeting via Twitter the previous day, President Obama was quoted as saying, "The continuing decline in the housing market is something that hasn't bottomed out as quickly as we expected," later adding that his Administration's efforts to help struggling home owners were "not enough.")

“There is a very big anti-homeown-ership bias coming out of Washington and we are going to have to fight for everything we have,” Rosen said. Tight credit standards are housing’s biggest problem today. As the result of tight mortgage requirements, 30% to 40% of people who want to buy a home can’t, he said. At the peak of the housing boom, when excessively easy credit prevailed and “anybody who could fog a mirror could get 100% financing” is the time when the banks should have been tightening. Now, at the bot-tom of the market, is when conditions should be loosened. “It makes no sense whatsoever,” he said. In Washington, banking regulators “are not doing the right thing.” He cited Lew Ranieri, the “godfather” of mortgage finance, and others who believe mortgage lending has become overly restrictive and who are “trying to get the ear of somebody, but there’s nobody to listen.” Ordinarily, first-timers would be accounting for 50% of home sales, but “that’s down now because it’s harder to qualify,” Rosen said. “The low-end consumer is not feel-ing very good,” he said, but there is “some light

at the high-end of the housing market." In California — where San Francisco and the Silicon Valley are very strong, San Diego is slowly getting better, Orange County is suddenly somewhat better, Los Angeles is lagging and the Inland Empire and Sacramento are the weakest performers — homes are at their most affordable level in 20 years, he said. “If you have 20% down and a high FICO score, now is the time to lock in financ-ing, the cost of which will be going up over the next two years,” he said, raising the concern that mortgage rates could be ascending just as the housing recovery is shifting into high gear. In the meantime, builders should be building 1.1 million single-family homes a year (compared to a yearly pace of 419,000 starts in May) and demographics ought to be supporting rising levels of demand, with 45 million echo boomers waiting in the wings to enter the job and housing markets over the next decade and 20% of the population nearing retirement.

New Policies Needed Immigration is also an important part of the housing demand equation, and it could be buttressed by “stapling a green card to every foreign graduate” of a U.S. university. “We are giving up 1% of GDP a year because we are making it so hard for people [immigrants] to get here,” he said. Attention also needs to be given to selling off the 1.6-million unit overhang of houses. “We need to clean them up and get rid of them, and get this done. But government doesn’t know how to do it,” Rosen said. “I don’t see a big upturn until we get policy changes in Washington, maybe in 2013. In the meantime, they’re going to scapegoat the industry.” Among the things that need to be done to put housing back on its feet, Rosen said that credit standards should be eased at Fannie Mae, Freddie Mac and the Federal Housing Administration. Housing also needs to raise its pro-file. “If we solve the housing problem, we will really help the economy and job creation,” he said. To solve the foreclosure “hangover,” Washington needs to pursue “a forceful fore-closure abatement policy working with the top 20 banks,” and that effort should be overseen by a “buck stops here” housing czar who can get the job done.

Home Builders Association of West Florida • August 201114

FHBA News

EPA Rejects Lead Testing Proposal In a victory for the lobbying efforts of the National Association of Home Builders (NAHB), the U.S. Environmental Protection Agency announced late last week that it has rejected a proposal to add third-party clearance testing to the Lead: Renovation, Repair and Painting Rule (RRP). The lead rule applies to homes built before 1978 and requires renovator training and certification, following lead-safe work practices, containing and cleaning dust, and record keeping. Under the lead paint rule,

contractors have been required to wipe down the project area after completing remodeling or renovation work and match the result to an EPA-approved card to determine whether lead paint dust is still present – a process that EPA says is “effective at reducing dust lead levels below the dust-lead hazard standard.” The pro-posal would have required contractors to hire EPA-accredited dust samplers to collect several samples after a renovation and send them to an EPA-accredited lab for lead testing. Because of the cost of this as well as the waiting period for test results and the limited number of accred-ited labs nationwide, professional remodelers were very concerned about home owners’ willingness to undergo the process. For more, visit www.nahb.org.

Grandfathering of Home Inspectors Legislation passed during the 2011 session of the Florida Legislature allows three new groups of professionals to apply for licensure by grandfathering as a home inspec-tor. These groups include individuals with current certification as one- and two-family dwelling inspector issued by the International Code Council or the Southern Building Code Congress International; individuals with cur-rent certification (active or inactive) as one- and two- family dwelling inspector issued by the

Florida Building Code Administrators and Inspectors Board; and individuals with a cur-rent (active or inactive) Division I contractor license issued under part I of Chapter 489, F.S. Grandfathering for these individuals will be available until July 1, 2012. The Department of Business and Professional Regulation (www.myfloridalicense.com) will continue to process the applications that were previously filed by applicants who applied by March 1, 2011 under the prior grandfather provisions.

Carlson Assails Onerous Regulations Responding to a question posed by a national newspaper columnist about the government’s role in support of homeowner-ship (see President’s Message above), Florida Home Builders Association (FHBA) Past President Jay Carlson of Punta Gorda believes government should remove policies that make homeownership inaccessible to more people. A second-generation builder for over 25 years, Carlson wrote: “I have witnessed an onslaught of government regulation from the federal, state and local level. These regulations are often redundant at different levels and add un-necessary cost to the new home even before the ground is broken. Examples of this waste and abuse abound. Take a good look at the EPA and state agencies as one example. Addressing the dream of homeownership transcends the building industry into every facet of the United States governance. If we, as Americans, are to

August 2011 • www.westfloridabuilders.com 15

FHBANews

provide that dream then we must begin to dis-mantle the onerous hand of bureaucracy with the knowledge that some modicum of govern-ment oversight is necessary. If we begin this process with certainty then the US economy will begin to bloom again. The homebuilding industry will move again and eventually we (Americans) will not have to beg our federal government for a tax break handout, because tax breaks will not be necessary.” If you want to respond, send an e-mail to colorofmoney@washpost.com with “A Dream Not Deferred” in the subject line.

FHBA Supports Maronda Challenge Through its General Counsel Keith Hetrick of the Board and Cassel law firm, the Florida Home Builders Association (FHBA) has partnered with the National Association of Home Builders (NAHB) to file an amicus (“friend of the court”) brief in the Florida Su-preme Court in support of an implied warranty challenge by Maronda Homes, Inc. The brief was filed by Hetrick and Board and Cassel attorney David Miller, appealing a 5th District Court of Appeal decision that significantly broadened the judicially imposed common law doctrine of implied warranty by extending the implied warranty of home habitability beyond what was previously understood to be a war-ranty that protected the inhabitants of a home from serious defects that might harm health and safety. In Maronda, the implied warranty was extended to roads and drainage facilities within a subdivision. In the brief, FHBA and

NAHB argued that the court should not impose the severe measure of an implied warranty to make developers into insurers against defects in common areas that meet regulation and do not directly affect health and safety of the home. “This is a significant case that stands to directly affect the risks involved in home build-ing,” said Hetrick. “Hopefully, the Florida Su-preme Court will reverse the 5th DCA decision and leave it to the Legislature to legislate.” A decision is not expected until summer of 2012.

Water Forum: Focus on Alternatives With a wary eye on tough new numeric nutrient standards for Florida, state and federal elected officials and regulators agree that developing water alternatives should be the focus of future water-policy decisions. Speaking at the recent 2011 Florida Water Forum sponsored by Associated Industries of Florida (AIF), state Rep. Trudi Williams (R-Fort Myers), Agriculture and Consumer Services Commissioner Adam Putman, Florida Congressman Dennis Ross (R-Lakeland), and Southwest Florida Water Management District Director Melissa Meeker supported financial resources to incentivize creation of alternate water supplies for the state. Williams expressed frustration that the 2011 Legislature failed to pass her HB 239, which would have addressed issues related to the Environmental Protection Agency's (EPA’s) efforts to regulate nutrient water standards (numeric nutrient criteria, or NNC) in Florida. “It’s a positive sign that the focus is on alternatives,” said Florida Home

Builders Association (FHBA) General Counsel Keith Hetrick, who attended the conference. For Hetrick’s report, visit www.fhba.com under Features/Legislative Updates.

‘Hardest Hit’ Rejecting 80 Percent According to a recent report by Mary Shanklin in the Orlando Sentinel, 80 percent of 2,700 applications from Florida homeowners seeking mortgage assistance from the federal government's Hardest Hit Fund have been rejected. Florida has received a $1 billion share of the federal program, which helps hom-eowners with their mortgage payments up to $12,000 over periods up to six months. "I don't think we would have wanted to make the quali-fications more broad and have more people qualify," said Cecka Rose Green, spokeswoman for the Florida Housing Finance Corporation (FHFC). "We want people who have the best chance of sustaining and keeping their homes.” Top reasons for rejecting homeowners: appli-

cants, if unemployed, were in some way at fault for losing their jobs; if working, they were not considered "underemployed;" they were six months or more behind on their mortgage payments; or they had enough income to spend 31 percent of it on housing expenses. FHFC Chair-man Len Tylka (a West Palm Beach builder and Past President of the Florida Home Builders Association) said some homeowners may not have applied because of a sense of helplessness. "It could be that some folks feel so far underwater it's not worth reaching out," he said. "There's still plenty of capacity out there to help them."

Home Builders Association of West Florida • August 201116

August 2011 • www.westfloridabuilders.com 17

Builder & Developer MembersCoast to Coast Constructors, Inc.

Duffy Snyder, LLC

Irby Engineering & Construction, Inc.

Ricky Wiggins Builders, Inc.

Roger Mosley Construction, Inc

Thomas Home Corporation

Associate MembersAir Design Systems, Inc.

Atkins

Bloomer, Geri & Company

Gulf Atlantic Insulation, Inc.

Hamby’s Kitchen Center

Hammond Engineering, Inc.

Hattaway Home Design

Jenkins Brick & Tile Company, LLC

Mathes Lighting & Lamp

Pensacola News Journal

RTS All American Garage Doors, Inc.

United Bank

THANKS FOR RENEWING!

84 Lumber CompanyAcorn Construction, Inc.Appleyard Agency, Inc.D. R. Horton, Inc.Eddie Bryan Builders, Inc.Frameworks, LLCGreat Southern Wood PreservingGulf Breeze Natural GasJ. M. Harold Construction, Inc.Mack Custom Homes, LLCNUCONSTEELOverhead Door CompanySouthern Forest Products Assn.Southern Mirror Co.Swift SupplyWesterheim Properties, Inc.

TIME TO RENEWSEPT. 2011 Renewals (Renewal invoice to be mailed 3rd week of Aug.)

MembershipNews

DON’T LOSE YOUR MEMBERSHIP(You still have time to renew)

MAY EXPIRATIONSAll Pro Sound

Authentic Construction, Inc.

Clark Partington Hart

Containers, Inc.

Coogle Homes, LLC

Force 5 Walls, Inc.

Gilmore Services

Gulf Coast Title Partners, LLC

Gulf Winds Real Estate Group, LLC

Kenneth E. Witt Carpentry, Inc.

L. A. Builders

LaSage Homes, Inc.

Lee Mechanical & Plumbing

Luker Builders, Inc.

Sandy Sansing Dealerships

SBD of FL, Inc. Cabinets - Millwork

Todays Homes of Northwest FL

Town & Country Industries

Williams-Brown, Inc.

JUNE EXPIRATIONSEmerald Coast Utilities Authority

Energy Systems A/C Contractors

First American Title Insurance Company

GCS Building Solutions, Inc.

Tara Construction of N.W. FL., LLC

ABC Supply Co. Inc.Lee Rider3100 N. PalafoxPensacola, FL 32501T: (850) 435-1536 F: (850) 469-0194leerider@abcsupply.comwww.abcsupply.com

WELCOME NEW MEMBERS

Home Builders Association of West Florida • August 201118

Advertiser’sIndex Alpha Closets and Company 19

850.221.8771

lesliehalsall@mchsi.com

www.AlphaCloset.com

Anchor Pest Control 2

850.435.7696

dana@anchorpestcontrol.com

www.AnchorPestControl.com

Bonded Builders Home Warranty 17

800.749.0381, ext.800

www.bondedbuilders.com

Energy Services of Pensacola 2

850.436.5050

www.espnnaturalgas.com

FHBI 14

888.513.1222

www.fhbi.com

Gulf Power Back Cover

850.505.5338

www.GulfPower.com

warren wight creative services 9

warren@ww-cs.com

www.ww-cs.com

Advertiser’s Index

In construction, a spike is a steel object that is essen-tial to making a building strong. As in construction, the HBA of West Florida sees a Spike as someone that works to keep our association strong. Spikes work on the recruitment and retention of members in addition to keeping members active with the association. Anyone is eligible for Spike status. On Spike credit is awarded for each new member recruited and an additional credit is awarded for that new member’s renewal on or before their anniversary date. If you help to retain a member, you are eligible to receive a half point for each member.

Spike Club LevelsSpike Candidate 1-5 creditsBlue Spike 6-24Life Spike 25-49Green Spike 50-99Red Spike 100-149Royal Spike 150-249Super Spike 250-499Statesman Spike 500-999Grand Spike 1000-1499All-Time Big Spike 1500+

Spike Club Members and their credits as of 06/01/2011

Super Spike 250 CreditsHarold Logan 498Rod Hurston 398Jack McCombs 272.5

Royal Spike 150 CreditsMike Blanton 200Ron Anderson 198.5Edwin Henry 192.5Rick Sprague 186.5Carlton Bowers 160.5Bob Boccanfuso 159Betty Evans 153.5

Red Spike 100 CreditsThomas Kennedy 145Collier Merrill 129Alan Brock 127Lee Magaha 124.5Don Suarez 117Dan Gilmore 113.5Oliver Gore 111.5

Green Spike 50 CreditsWilliam “Billy” Moore 99.5 Ricky Wiggins 89 Doug Sprague 77.5John Harold 76Ron Tuttle 76David Holcomb 68.5Kenneth Ellzey, Sr. 60.5 Wayne Underwood 58.5Millie Carpenter 56.5Chris Pate 55.5Kevin L. Ward 55.5 Paul Stanley 54Tina Monie 50

Life Spike 25 CreditsWest Calhoun 48.5Bob Price, Jr. 47Wilma Shortall 43.5Eddie Zarahn 38Thomas Westerheim 37Darrell Gooden 35Garrett Walton 28.5Russ Parris 26

Blue Spike 6 CreditsJames Dillaha 21.5Doug Herrick 18.5Ed Wonders 18 John Hattaway 18Keith Swilley 17.5Newman Rodgers IV 17Jim Harris 17Doug Whitfield 15 Steve Moorehead 15Russ Parris 14 Todd Stafford 14 Michelle Bean 12Dean Williams 10.5Towana (Rudd) Henry 10 Brent Woody 8 Beth Shoemaker 7Bernie Mostoller 7

If you would like to join the Spike Club or Desire Additional Information, please contact Alecia Overman at

(850) 476-0318.

NEXT CORNERSTONE

ISSUE:

SEPT. 2011For advertising information, contact

Richard Nicholson 561.843.5857 / rknichent@aol.com

August 2011 • www.westfloridabuilders.com 19

Home Builders Association of West Florida • August 201120