Home Builders Association Launches Liability Insurance Company With liability insurance for builders becoming increasingly expensive and hard to find, the Home Builders Association of Mississippi has started its own company, Mississippi Builders and Contractors Insurance Company, which is a risk retention group. “We’ve only been in business a month,” said the association’s executive vice president, Marty Milstead, “and the response has been very good. We’re getting a lot of applications and writing business. It looks like it is going to be a very successful program.” The product is marketed through independent insurance agents in Mississippi, but is owned by the stockholders, who are its policyholders. “It is important for builders to have liability insurance for the same reason you need to have insurance for anything,” Milstead said. “It protects you when you have major exposures. Home builders build very, very expensive products, and with that comes a lot of potential liability. This insurance is designed to cover those exposures of business people who build houses,” he said. Milstead also noted that some builders who have less than five employees and hire subcontractors don’t carry workers’ comp insurance because the state law doesn’t require them to. “I don’t think they understand the full exposure they have,” Milstead said. “If they don’t carry workers’ comp, they are personally responsible for those claims. And we see these construction-related injuries that get into the millions of dollars. If a roofer falls off a roof and ends up in a wheelchair, the contractor is personally responsible for that individual for the rest of his life. That is not covered under general liability. That is a workers’ compensation claim.” (www.msbusiness.com)
Mississippi Business Journal (3/7/05) [Return to top]
Industry Seeks to Limit Multi-Employer Citations in Construction A case pending before the Occupational Safety and Review Commission could determine if the Occupational Safety and Health Administration has the authority to issue multi-employer citations against general contractors for violations by a subcontractor. In a joint brief, NAHB, the Contractors Association of New York, the Greater Houston Home Builders Association and the Texas Association of Builders argue that regulatory language stating that each employer shall protect the employment and places of each of “his employees” engaged in construction work implies that employers in the construction industry are only responsible for their own employees. The suit challenges a specific $4,000 penalty imposed by OSHA against Summit Contractors, which was the general contractor of a student dormitory at Philander Smith College in Little Rock, Ark. The citation was based on scaffold violations by the masonry subcontractor, All Phase Construction, Inc. Summit employees performed no work on the scaffold. OSHA rarely issues multi-employer citations outside of the construction industry. (www.insidehealthpolicy.com)
InsideHealthPolicy.com (4/4/05) [Return to top]
The Well-Feathered Empty Nest: Aging Boomers Seek Homes With Fewer Chores, Not Fewer Luxuries Empty-nesters in their 50s and 60s are fueling demand for low-maintenance single-family homes with service fees to cover upkeep of the lawn and landscaping. Going by several names, including landominiums, club houses, villa homes and patio homes, the product is geared to households that aren’t willing to share walls with townhome neighbors or scale down into a condominium. Jack Myers, patio sales manager for Fischer Homes in the Cincinnati area’s Crestview Hills, said customers look for walkout basements and open floor plans. The patio homes range from $170,000-$300,000 and 1,150-3,500 square feet. Tony Hering, of Delhi Township-based custom builder Hering Homes, says 40% of his business today is in $220,000-$550,000 ranch-style landominiums with three-car garages, finished basements and very open first-floor levels; and he expects them to account for 60%-70% of his business in three years. Also popular among Hering Home’s empty-nester buyers are mother-in-law suites, which can feature a separate entrance and outside patio, as well as a bedroom, bathroom and sometimes a kitchenette. The company avoids steep driveways, exterior steps and sloping yards. (www.bizjournals.com)
Cincinnati Business Courier (3/28/05); Karen Bells [Return to top]
Mammoth Remains Unearthed at California Construction Site Crews clearing away a hillside to prepare for building in Moorpark, Calif., which is about 30 miles west-northeast of downtown Los Angeles, uncovered a remarkably well-preserved half-million-year old mammoth, including both its six- to seven-foot-long tusks. The mammoth was an estimated 12-feet tall. “It’s considered a very significant find, and it’s a very complete fossil,” said paleontologist Mark Roeder. "It’s unusual because it was found all the way down near the bedrock.” Other Ice Age creatures found in Southern California in recent years include a mastodon in Simi Valley, a mammoth in Oceanside and a pygmy mammoth on the Channel Islands. (www.cnn.com)
CNN.com (4/8/05); Associated Press [Return to top]
After the Housing Boom Home owners who have made a habit of tapping into their equity will find that their home is no longer an ATM as housing price gains slow from their 10% annual clip. “Home prices will rust, not bust,” for the next few years, says Richard Berner, chief U.S. economist for Morgan Stanley. As a result of rising mortgage rates, economists surveyed by Blue Chip Economic Indicators expect housing starts and sales to slip about 5% this year and next. The slowdown in home-price appreciation could have an impact on consumer spending. A 2002 study by the Federal Reserve found that the average household extracted $26,700 in equity with each financing. One-third of that was used to pay off old debts or add to savings, but the other two-thirds was spent, adding one-quarter to one-half percent to consumer spending. Freddie Mac is forecasting that refinancings will fall from $139.2 billion last year to $95.9 billion this year and $61.2 billion in 2006. Despite the mortgage frenzy of the past few years, banks have kept about one-third of their assets in housing-related assets, such as mortgages and home-equity loans, the same ratio as in 1995, before the boom. A slowdown in house appreciation could actually have some beneficial effects for young families who have been encountering housing affordability problems, according to David Lereah, chief economist for the National Association of Realtors. (www.businessweek.com)
Business Week (4/11/05); Kathleen Madigan, Christopher Palmieri, Ann Therese Palmer and Dean Foust [Return to top]
Apartment Rents Are Heading Up in Southern California, Says USC Study With Southern California’s steadily growing and diversified economy setting the stage for increased job formations and more demand for apartments in the coming year, average asking rents and occupancy rates will continue to improve in the region’s multifamily markets, according to a forecast released on April 5 from the University of Southern California’s Lusk Center. Average rent increases this year are expected to range from 3.5%-6%. “The new supply of apartments has not kept up with demand from newcomers attracted to jobs in our diverse economy and the Southern California lifestyle,” said Delores Conway, director of the Casden Real Estate Economics Forecast. “Apartment occupancies are at all-time highs in Los Angeles, Orange, Riverside and San Bernardino Counties because of a steady stream of young professionals and Latin and Asian immigrants who cannot afford the average home, along with relocated executives who choose not to get locked into a mortgage.” This year, the average rent for a two-bedroom apartment is projected to rise to $1,500 in Los Angeles County, $1,520 in Orange County and $1,080 in the Inland Empire, according to the forecast. (www.rismedia.com)
RisMedia.com (4/5/05); Beth Bresnahan [Return to top]
Home Repair Legislation Passes Oklahoma House Committee Legislation in Oklahoma that would require home builders to respond within 30 days of being notified by the home owner of a defect is receiving the strong support of industry representatives. Republican state Sen. Todd Lamb says his bill would require the builder to provide a good faith estimate to repair, replace or compensate the purchaser for a defect in a new home. “As a new home owner, I understand that problems may arise after a family moves into the home,” said Lamb. “I am positive this measure will prove to be a positive impact upon Oklahoma consumers, and will also provide a clearly defined process to ensure that their homes are safe and free of builder-related problems. It is cost-prohibitive to litigate these matters, and this legislation will ensure consumers get their homes fixed.” Mike Means, executive vice president of the Oklahoma State Home Builders Association, says that Lamb’s bill benefits owners by getting problems fixed faster and benefits builders by giving them a chance to fix problems before they become legal matters. “From our standpoint, we want to get that notification, so we know when there is a problem, prior to any kind of court action,” said Means. “The basic gist of this bill is to get the buyer and the builder together to get a problem fixed before ever having to get anybody else involved. The whole idea is to keep the communication lines open. Anytime we’re all communicating, something good is going to happen, the way I look at it.” (www.journalrecord.com)
Oklahoma City Journal Record (4/1/05); Janice Francis-Smith [Return to top]
Tame Closet Monsters End Your Wardrobe Nightmares With These Dreamy Solutions A consumer preference study conducted by NAHB last year indicated that 64% of the home owners surveyed didn’t think that their new homes had adequate general storage and 30% said that their master bedrooms did not have adequate closet storage. Amy Purcell, marketing communications manager for Shulte Distinctive Storage of Cincinnati, says that ample storage space is a key selling feature for homes. “What is interesting is that as the value of the home goes up, the percent of closet space increases, even if the square footage of the home does not,” she says. Double-hang sections comprised of two shelves with rods that hang one above the other are most desired by consumers, according to Purcell. “Double-hang can almost double your storage space,” she says, since such items as shirts, folded pants and jackets can be hung from both levels. Double- and even triple-hang rods also work well for children’s rooms since their small clothing takes up less vertical space. “Typically, 50% of your closet should be double-hang,” she says, “25% should be single-hang for long garments like dresses and coats and 25% should be shelving.” (www.orlandosentinel.com)
Orlando Sentinel (4/3/05); Denise Bates Enos [Return to top]
Changes Considered in Environmental Protection Six bills in the California legislature would change the state’s environmental protection law to relax rules for housing projects in urban areas. Under California’s 35-year-old Environmental Quality Act, any development project must be examined for its impact on the environment and quality of life issues, such as noise and traffic. For most projects, developers have to prepare extensive environmental impact reports and they often have to contend with neighborhood opposition, particularly in large urban areas, where traffic and parking are concerns. This is one of the causes of urban sprawl, said Jerry Bunin, governmental affairs director for the Home Builders Association of the Central Coast in San Luis Obispo. “If you aren’t allowing infill, you are pushing development outward,” he said. Among the legislative provisions that have been proposed to speed up housing are: the creation of a shorter environmental impact report for residential projects within cities or unincorporated areas zoned for housing; an exemption for infill projects in cities with populations of 200,000 or more; and the removal of traffic study requirements on urban projects as long as they comply with local transportation plans. (www.sanluisobispo.com)
San Luis Obispo Tribune (4/5/05); David Sneed [Return to top]
Twin Falls City Council Eases Animal Permits, Discusses Parks Builders in Twin Falls, Idaho, are up in arms over a proposed local ordinance that would require developers to provide park space and storm water retention areas in new development or pay money in lieu of a park. Jeff Gooding, legislative liaison for the Magic Valley Builders Association, told a city council meeting that Idaho gives cities the power to fund parks through taxes, not through requirements on developers. He also said the ordinance was “excessive,” because it would create about one acre of park for every 269 people, compared to the 667 people recommended by NAHB. Another hearing will be held on the ordinance before it is put to a vote. (www.magicvalley.com)
Twin Falls, Idaho, Times-News (4/5/05); Karin Kowalski [Return to top]
Fair Housing Report Shows Housing Providers More Likely to Face Scrutiny Landlords and rental agents who violate the Fair Housing Act are more likely than ever to come under federal scrutiny by the U.S. Department of Housing and Urban Development, according to a new 2004 State of Fair Housing Report. HUD and its state and local Fair Housing Assistance Program partners received 9,187 housing discrimination complaints last year, a 13% increase. They settled 3,183 cases and provided more than $11 million in monetary relief. “In four decades, we have made great progress in educating people about the Fair Housing Act, but as the cases highlighted in this report illustrate, not everyone has gotten the message,” said Carolyn Peoples, HUD assistant secretary for housing and equal opportunity. “In an era where finding safe, decent, affordable housing can sometimes be difficult, equal access is more important than ever.” The report is at www.hud.gov/offices/fheo/enforcement/hudcharges.cfm. (www.rismedia.com)
RisMedia.com (4/1/05); Beth Bresnahan [Return to top]
Most Home Buyers Are Using Internet Searches A study by the California Association of Realtors® found that 62% of home buyers used the Internet as an integral part of their home search this year, up from 52% last year. Buyers who used the Internet took two weeks to find the houses they bought, compared to seven weeks for those who did not. The Internet buyers spent almost three times longer considering buying a home — almost six weeks — before they started shopping seriously Buyers who used the Internet were younger, wealthier and better educated than other buyers, the Realtors® said. (www.venturacountystar.com)
Ventura County Star (3/31/05); Gretchen Macchiarella [Return to top]
Two New Loans for Buyers In an effort to ease the sting of rising home prices that are squeezing many first-time buyers out of the housing market, the California Housing Finance Agency has begun offering free mortgage payment insurance and a 35-year, fixed-rate interest-only loan. HomeOpeners automatically covers monthly mortgage payments of up to $2,500 for up to six months if a home owner loses their job. The free insurance is in effect for the first five years of the loan. The agency’s interest-only PLUS loan is designed to reduce payments by hundreds of dollars per month. The home owners start paying off the principal after the first five years. The finance agency’s specialized loans, including below-market interest rates, are available to single or couple, first-time buyers with incomes of no more than $78,600, and the cap is $91,700 for a family of three or four. Loans are usually in the $250,000-$325,000 range. (www.dailynews.com)
Los Angeles Daily News (4/1/05); Gregory J. Wilcox [Return to top] |
