VOLUME 1, ISSUE 4 APRIL 2023
New Home Sales Relatively Flat in February
Higher mortgage rates and home prices, as well as increased construction costs, contributed to lackluster new home sales in February, but signs point to improvement later in the year. Sales of newly built, single- family homes in February increased 1.1% to a 640,000 seasonally adjusted annual rate from a downwardly revised reading in January, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. However, new home sales are down 19% compared to a year ago. A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the February reading of 640,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory fell for the fifth straight month. The February reading indicated an 8.2 months’ supply at the current building pace. A measure near a 6 months’ supply is considered balanced. However, single-family resale home inventory stands at a reduced level of 2.5 months. The median new home sale price rose in February to $438,200, up 2.5% compared to a year ago. Regionally, on a year-to-date basis, new home sales fell in all regions, down 29.2% in the Northeast, 21.3% in the Midwest, 7.3% in the South and 40.6% in the West.
GCBA President’s MessagE APRIL 2023
Respectfully yours, Frank R. Coppola, III GCBA 2023 President
Greetings Fellow Gold Coast Builders Association Members and Potential Members, You have heard the saying…Opportunity knocks. The dots emphasize a pause before the point of the saying. It amazes me how many people miss opportunity because they think opportunity does knock…loudly. Sure, there are instances when there is an inflection point; a promotion; a bigger client walking in the door. Yet, something much more subtle has the potential to set your career on a life changing course. It requires patience, effort…and faith in yourself. I know because I experienced it. Five years ago, I applied and became a Florida Certified Master Builder (FCMB). The process was arduous, and I immediately expected big things. This branding clout was supposed to bring me new business. I paid my dues for the first two years but wasn’t really getting anything back. On the third year, my renewal was up, and I was going to quit. A week before quitting, while walking down a hallway at SEBC, a friend suggested I attend an FCMB Board meeting. I didn’t receive a formal invitation. The suggestion was made so nonchalantly that I could easily have waved it off. I didn’t even know the FCMB was part of the FHBA. I thought to myself “What do I have to lose, and in I went”. In the Board room I picked up the agenda. The first item was “How to retain FCMB members”. The packet had the list of FCMB members. The board was spit-balling ways to retain members as I read the list which showed the top 36 companies in Florida. Unconsciously I chuckled out loud. All eyes focused on me. I only knew one person in the room so sheepishly raised my hand and asked to speak. Then, I just blurted out “Are you kidding me? You all are questioning the value of being a FCMB? If I had known who the other FCMBs were, and I that I would be able to interact with these all-stars, I would have never even thought about quitting.” It took me two years of spinning my wheels before that hallway encounter led me to view information that would lead to so much growth. Today, I’m FCMB Chairman of Board. Remember, I ALMOST QUIT. Which brings me to the GCBA. I’m committed to this group to help get the word out about the “brain trust” we have so others can meet OPPORTUNITY head on. Had I not walked through the door of that FCMB committee meeting I never would have been exposed to an incredible number of opportunities as a member of the FCMB. My business has grown, I’m made friends that I will have for the rest of my life, and I am part of a group that literally is setting standards of conduct for Florida Residential Construction. Business Development, Personal Growth, and a chance to move our Industry. Sound familiar? Recently at the GCBA Hard Hat Happy Hour I had an aspiring member say, “…my boss might not renew our membership because we’re not getting business.” The boss is right while simultaneously wrong. Why? That employee is on a path, in my opinion, to make it all the way up the ladder to be President of GCBA. It may take years, but from my vantage, I can see all the great things that could come with perseverance and GCBA guidance. Yet they are thinking of quitting! The late Steve Jobs once said in a commencement speech about success and things that happen. "You can't connect the dots looking forward. You can only connect them looking backward. So you have to trust that the dots will somehow connect in your future”. We all must trust in something -- our gut, destiny, life, karma…whatever. Just remember…the opportunity dots that connect us in life. Opportunity doesn’t always knock.
April 20 – Speed Networking – 3PM May 5 – Coffee & Conversation – 8:30AM May 19 – Annual Golf Outing – 8AM June – Annual Homeownership Month June 6-10 – NAHB Spring Leadership – All Day June 14 – GCBA Quarterly Board Meeting – 4PM June 21 – Hurricane Preparedness – 9AM July 7 – Coffee & Conversation – 8:30AM July 19-20 – SEBC – All Day August 4 – Coffee & Conversation – 8:30AM September 1 – Coffee & Conversation – 8:30AM September 6 – Quarterly Board Meeting – 4PM September 12 – PRISM – 6PM September 19-21 – NAHB Fall Leadership – All Day October 18 – Annual Meeting – 5PM October TBA – FHBA Fall Boards – All Day November 3 – Coffee & Conversation – 8:30AM November 9 – Annual Chili Cook-Off – 5:30PM December 1 – Coffee & Conversation – 8:30AM December 6 – Board Meeting & Full Strategic Planning for Next 5 Years 12-6PM December 13 – Holiday HHHH – 5:30PM
GCBA 2023 CALENDAR OF EVENTS
Executive OFFICERS PRESIDENT Frank R. Coppola lll, Coppola Brothers 1ST VP Michael Nunziata, 13th Floor Homes 2ND VP Jon Long, Ryan Homes VP FINANCE Steve Karp, Karp PA ASSOCIATE VP Anthony Macaluso, Integrity Development Group 2nd Assoc. VP Ethan Nelson, NelStone Consulting and Repair, LLC IMMEDIATE PAST PRESIDENT Rafael Roca, D.R. Horton Homes Board of Directors Builder Members Mark Richards, Stock Custom Homes Mark Kruger, Hierromat Development Mark Welsh, Lennar Homes Herb Tremble, Master Contractor and Subcontractor Association of Florida Matt Ellish, Ellish Custom Homes Michelle Mockenhaupt, D.R. Horton Associate Members Mark Anderson, U.S. Bank Sam Yates, Yates & Associates Rick Baxter, Palm Beach Post Andy Wyman, Wyman Legal Solutions Executive Officer: KT Catlin Director of Member Services: Andrea Flores Bookkeeping: Kathy Bass Design: Gregory J. Del Deo
GCBA 2023 Leadership List
If you are interested in serving on the Board and/or Becoming an Office please contact KT at 561-228-6137 or KT@GCBAFlorida.com
Check GCBA's Wednesday Mid-Week eMail for current Location & Registration Information.
CHECK WEBSITE FOR MOST CURRENT INFORMATION
GCBA MEMBERSHIP NEWS MARCH 2023
MEMBERS SAVINGS & REBATE PROGRAMS
BIG Welcome to our 1ST QUARTER Members!
CLICK HERE TO LEARN MORE
Contact Us - FHBA Private Insurance Exchange Phone: (800) 282-8626 Fax: (904) 212-2058 Address: FHBA Member Benefits 10739 Deerwood Park Blvd. Suite 200-B Jacksonville, FL 32256
GCBA 2023 TOP RECRUITERS Michele Mockenhaupt – 6 Frank Coppola – 4 KT Catlin – 3 Marc Kruger – 1 GCBA SPIKE CLUB Members reach the GCBA Spike Club once you recruit 5 or more members in the current year. GCBA Spike Club Members will be recognized at Board Meetings & more!
ASSOCIATES 84 Lumber Co. Sean Peterson sean.peterson@84lumber.com 561-841-2584 Arciero Drone Services Heather Arciero info@arcierodroneservices.com 561-284-6159 BKS Partners Michael Nolan 954-558-3040 Citizens Bank Keary Fennell keary.fennell@citizensbank.com 561-310-4145 Garage Doors of Palm Beach Heather Patton heather.patton @garagedoorpartners.com 239-359-6272 IOA (Insurance Office of America) Nick DiBattisto nick.dibattisto@ioausa.com 561-296-5910 Magellan, Inc. Real Estate & Relocation Kimberlie Barrett 585-233-6111 Nelstone Consulting and Repair, LLC Ethan Nelson 239-405-8085 VanDyk Mortgage Corporation Thecia Maurone-Toth ttoth@vandykmortgage.com 954-560-2885 Affiliate Barbara Garcia bgarcia@runbrook.com 305-342-3624 Builders CMax Construction, LLC Chuck Maxwell 561-437-5369 Heritage Carpet & Tile, Inc. Colin McCabe cmccabe@heritageflooring.com 561-424-9090 RJS Builders Inc. Colby Scialla colby@rjsbuilders.com Thomas Homes Robby Thomas info@thomashomes.com 954-210-9797 Professional Women In Building Council (PWB) Keary Fennell keary.fennell@citizensbank.com 561-310-4145 If you sponsored one of these individuals please let KT know! We will be having year long contests and recognition for Recruiting & Retention!
Conn. HBRA Gains Rent Control Win The Connecticut legislature decided in March that proposed rent control legislation would not move forward, and instead created two legislative task forces to further explore the issue. The move came after the HBRA of Central Connecticut mobilized its Multifamily Council on the issue. In concert with NAHB and other partners, the HBRA promoted the value of exploring additional options to the housing affordability crisis and ways to provide tenants with safe, affordable housing.
SBA Rebukes DOE On Transformer Rule The Small Business Administration’s (SBA) Office of Advocacy has delivered a stinging rebuke to the Department of Energy’s (DOE) proposed rule to regulate energy conservation standards for distribution transformers after NAHB voiced its strong concerns at a recent SBA forum. In a seven-page letter to DOE opposing the agency’s proposed transformer rule, the SBA cited concerns raised by builders and specifically noted small home builders’ concerns “that delays in transformer installation have led to significant costs to their projects.”
Kohler Estate Gives Major Gift to NHE The National Housing Endowment (NHE) announced a $3 million gift from the estate of Herbert V. Kohler, Jr., former Kohler Co. Executive Chairman. As a founding member of NHE, Kohler served on the Board of Trustees for 35 years. In addition to funding residential construction faculty and curriculum, scholarships help more than 500 students annually attend the International Builders’ Show. The contribution also enables expansion of the Skilled Labor Fund’s Career Connections grant program to fund local HBA-organized career events.
WOTUS Rule Now in Effect in 48 States The Biden administration’s new “waters of the United States” (WOTUS) rule is in effect in 48 states, but the rule could be short-lived because the Supreme Court’s upcoming ruling under Sackett v. EPA is squarely focused on the legality of the rule's significant nexus test. The verdict could come in the next few weeks. Meanwhile, a Texas federal court has blocked the Biden WOTUS rule from taking effect in Texas and Idaho, and specifically cited serious concerns regarding the significant nexus text.
HUD Proposes New Flood Risk Rule HUD has published a proposed rule in the Federal Register that would revise HUD’s regulations governing floodplain management and the protection of wetlands in the implementation of the Federal Flood Risk Management Standard. HUD believes this proposal will improve the resilience of HUD-assisted projects to the effects of climate change and natural disasters and provide for greater flexibility in the use of HUD assistance in floodways under certain circumstances.
YOUR MOST IMPORTANT TOOL: CONTRACTS
LEGAL ROUNDUP
In today’s day and age, being a business owner and a contractor or home builder can be a legal minefield. It is more important than ever that you take steps to protect yourself from potential legal issues and pitfalls. The most critical tool in your legal toolbox is a written contract. Whether it’s with clients, subcontractors, or even with (especially with) your business partners, written contracts are crucial in protecting your business. Contracts with clients should include the scope of the work, all important legal terms and conditions, payment schedules, and warranties. Changes and variations to the scope of work or other terms of the original contract can arise during the construction process. It is essential to document all changes and variations to the contract in writing and have them signed by both parties. Contracts with subcontractors likewise need to identify the subcontractor’s scope of work and payment terms. Additionally, as a contractor, make sure your subcontracts identify insurance requirements and include termination clauses, indemnification clauses, and a way to resolve disputes that arise on the job. Finally, your most important relationships are with your business partners. Whether you operate your business as a corporation or a limited liability company (LLC),the owners must have an agreement between or among them that i) specifies the roles and responsibilities of each partner, ii) outlines what each partner will contribute to the partnership (money, expertise, labor, etc.), iii) identifies how decisions will be made and the business managed, and iv) details what happens in the event of a partner’s death or desire to sell or withdraw from the business. These are just general ideas of some of the things you want to make sure are in your contracts. The more detailed your contracts are, the easier (and less expensive) it will be to deal with problems when they arise with your client, your subcontractors, or your business partners. Do not just go to the internet and use the first contract you find. Instead, be sure to work with an experienced attorney who can help you customize your contracts to account for your unique circumstances, recent changes in the law, and any state-specific requirements. If you have any questions about how you can get professionally prepared written contracts to use in your business, please call me at (561) 361-8700.
Andy Wyman, Esq. is the founder of Wyman Legal Solutions in Boca Raton, Florida, and holds a Martindale-Hubbell rating of “AV-Preeminent” – the highest such rating for legal ability and ethical standards. An avid golfer, Andy resides in Boca Raton, Florida with his wife and two children. You can learn more about Andy at https://wymanlegalsolutions.com/about-us/. Email Andy atandy@WymanLegalSolutions.comwith any thoughts you would like to share concerning this article.
3-2-1... WE HAVE LIFTOFF!
FUTURE BUILDERS OF AMERICA
It was not a major space launch but a liftoff that was spellbinding nonetheless for a group of Future Builders of America students as they participated in a joint learning exercise with the Gold Coast Builders Association and GCBA Member Arciero Drone Services to learn about the latest drone technology in use for the construction industry. A dozen students, the Arciero Drone Services team, and representatives from Hierromat Development were center field at Lake Worth High School recently concentrating on drone technology and what that technology can offer as a potential career in construction. From hands-on drone command to viewing how today’s drone technology can map construction sites and provide precise information to ground crews, the after-school event was yet another success story for tomorrow’s construction leaders. According to Marc Kruger, COO, Hierromat Development, “The GCBA is committed to working with young adults at the high school level to expose them to the construction trades. We have partnered with the Future Builders of America to set up after school clubs on the campuses of local high schools that have offered NAHB’s Home Builders Institute curriculum in classrooms that are geared to the construction industries.” We know that connecting the local HBA with the future workforce of the industry is a win-win for everyone involved. Our special thanks to our Future Home Builders of America, Lake Worth High School, Hierromat Development, and Arciero Drone Services.
Tallahassee
ANOTHER PERSPECTIVE
By Sam Yates, Yates & Associates, Public Relations & Marketing
In this issue of the GCBA News to Build On, you're going to find a lot of information about the recent flurry of activity in Tallahassee involving the Florida Home Builders Association and our Gold Coast Builders Association. Leadership from both professional organizations sometimes burned the midnight oil, literally, to work for our Members and the future of our building industry. How they did that was by interacting with and informing our State lawmakers about our issues. Here is Another Perspective on our Tallahassee visit in a Q&A format with Miranda Coppola, the wife of this year’s GCBA President Frank Coppola. Q. What's your overall perspective of the Tallahassee visit? A. Well, I think we definitely made a big difference because it was really interesting. Going to visit all the senators and state representatives. It was neat to see how hard everybody is working behind the scenes. Also, how passionate everybody is about the issues because they affect all of us. It was interesting to see how we worked together trying to get the State Representatives or State Senators to vote for or against some of the issues. Q. Was it a social visit or lot of hard work for our Members in Tallahassee? A. You know, the issues that we were trying to get approved or not approved, took a little bit longer before decisions were made. So, it was very nice seeing the meetings that the FHBA held to inform us about what was going on. And then, it was time for us to go and talk to the various Representatives. It was hard but rewarding work. Q. What was the typical day? A. We were up by seven. Breakfast 8 to 9. Some FHBA board members had meetings beforehand. Then there were there were meetings after those meetings to again let us all know what was going on. A carriage that would drive the hotel every 15 minutes to drop you off at the Capitol. We were there, at the Capital, from 0930 until, our latest one, was 530 because we were waiting for one of the one of the Representatives, Mike Caruso. He was in session. He had an issue that all the sudden came up and which was very interesting because we were actually watching it play out on the TV while we were waiting in his office. Q. Are there any surprising moments that you can share? A. One that was very interesting. I was sitting in the background at Representative Michael Caruso’s office. I was sitting next to a woman and said, “Hi, I'm Miranda.” She said, “Hi, I'm Tracy, I'm Mike's wife.” It was really neat. I had a conversation with her. She was very nice. She lives right here in West Palm Beach. She and her husband Representative Caruso, came to the reception where again, I ended up talking with her. We're going out for either happy hour or dinner once the legislative sessions are over. That’s how you build relationships. Q. The final question, did the lawmakers acknowledge that they appreciated our representation? A. They did. Mostly everybody that we saw, and especially the ones that wrote the bills were very, very passionate. I think I only met one person who was not in favor of one of our issues due to her background. Once we got past her issue, and talked about other issues, it was all fine again. So, we really made a difference. It is their job to see us and listen. But they were genuine. They weren't just sitting there and going like, okay, here we go. They were involved and listened. Q. Miranda, anything you would like to add? It's almost like you get an adrenaline boost. Everything is so much more exciting after that because you made a difference. I think everybody should have that experience. If they can. Special thanks to Miranda Coppola for Another Perspective. The Florida Legislature is still in session. Your GCBA will update final results. Stay tuned.
A Look at the Costs of Constructing a Home
NAHB recently published its latest Cost of Construction Survey. Results show that construction costs were 60.8% of the average home sale price in 2022, essentially unchanged from the 61.1% posted in 2019. The finished lot category was the second largest cost at 17.8% of the sales price, down from 18.5% in 2019. The average builder profit margin was 10.1% in 2022, compared to 9.1% in 2019. At 5.1% in 2022, overhead and general expenses were also essentially unchanged when compared to 2019 (4.9%). The remainder of the average home sale price consisted of sales commission (3.6%), financing costs (1.9%), and marketing costs (0.7%). These percentages are also similar to their 2019 breakdowns. Survey respondents broke down construction costs into 8 major construction stages. Interior finishes, at 24.0%, accounted for the largest share of construction costs, followed by framing (20.5%), major system rough-ins (17.9%), exterior finishes (11.8%), foundations (11.0%), site work (7.4%), final steps (5.9%), and other costs (1.5%).
BOTTOM LINE
Virtual Link provided upon registration Tuesday, May 16, 2023 (8:00 AM - 5:00 PM) (EDT) Multiple dates to choose from. Register in Advance for These Meetings: April 18, 2023, May 16, 2023 Visit the GCBA Events Page To Register
Why Is This Happening?
Florida Building Code Training: Earn 7 Continuing Education Hours FREE!
FHBA is pleased to share that we are bringing Florida Builders an online continuing education seminar on the Florida Building Code via Zoom, in partnership with the Florida Building Commission, The Florida Department of building and Professional Regulation and Building a Safer Florida, Inc. The Seminar will feature seven hours of continuing education focused on the Florida Building Code. Florida Building Code Training: Course Line Up 8:00 am- 9:00 am: Residential Egress Provisions | 1 Hour| General | CILB # 0613638 | BCAIB #5008751 | FBPE #0008653 | Approved for Architects Optional Credit 9: 05 am – 10:05 am: Residential Energy Code General Requirements | 1 Hour| General | CILB # 0613640 | BCAID #5008750| FBPE #0008653 | Approved for Architects Optional Credit 10:10 am- 11:10 am: Residential Fire-Resistant Construction | 1 Hour | General | CILB # 0613642 | BCAIB #5008749| FBPE #0008653 | Approved for Architects Optional Credit 11: 15 am – 12:15 pm: Electrical Provisions for Builders | 1 Hour | Advanced Building Code | CILB # 613755 | BCAIB #5008784 | 1048.0 FBC | | FBPE #0008653 | Approved for Architects 12:15 pm 1:30 pm: Lunch 1:30 pm – 2:30 pm: Plumbing and Mechanical Provisions for Builders | 1 Hour | Advanced Building Code | CILB # 613753 | BCAIB #5008786 | 1048.0 FBC | FBPE #0008653 | Approved for Architects 2:35 pm- 4:35 pm: Building & Retrofitting in Florida | 2 Hours | General & Wind Mitigation Methodology |CILB # 0613745 | BCAIB #5008785 | FBPE #0008653 | Approved for Architects HSW Credit
If you have been wondering why if concrete prices seem higher lately – they are! According to information supplied by the NAHB, concrete prices are leading the way on recent price increases. Ready-mix concrete (RMC) prices continued their historic pace as the index increased 0.8% in February after gaining 0.7% in January (revised). RMC prices have increased in all but two months since January 2021. The monthly increase in the national data was broad-based geographically but was primarily driven by a 4.2% increase in the Northeast. Prices rose 0.8% in the West and 0.5% in the South, and were unchanged in the Midwest. The months-long concrete price increases are partially due to the closure of a large limestone quarry in Mexico. And the concrete shortage isn’t limited to the United States — it’s a global shortage being driven by the dearth of one of concrete’s main ingredients: cement mix. This has resulted in price increases across the board, and there does not appear to be any relief on the horizon.
Learn Strategies for Managing Mental Health
Construction workers are particularly susceptible to mental health issues and suicide – which is a silent killer in the industry. Although the most common mental health problems are anxiety and depression, other disorders such as Substance Misuse can be considered a mental health issue as well. When a worker is struggling to manage mental health issues, their safety and the safety of all those around them on the jobsite can be compromised. As a part of its ongoing initiative regarding members’ mental health and well-being, NAHB recently created a new video “toolbox talk” on mental health. English and Spanish versions of the video, along with a helpful handout, are available on the Mental Health Aware- ness webpage. For more infor- mation on opioid misuse, visit the resources on the Opioids in the Home Building Industry page. NAHB is also partnering with the North Carolina HBA (NCHBA) on a pilot program called “Blueprint for Worker Well-Being.” The goal of the program is to develop a strategic plan for mental health promotion and suicide prevention that can be replicated by other HBAs across the country.