FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE - CULPEPER
July 2023
BUILDERS FRAMEWORK
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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 7: Issue 7 July 2023
New Home Sales See Significant Increase in May
A lack of existing inventory coupled with solid consumer demand helped to boost new home sales in May to their highest level since February 2022. Sales of newly built, single-family homes in May increased 12.2% to a 763,000 seasonally adjusted annual rate, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. 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 May reading of 763,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory in May was 428,000, down 2.9% compared to a year ago. This is down to a more balanced 6.7 months’ supply at the current building pace, despite tight existing home supply conditions. A measure near a six months’ supply is considered balanced. The median new home sale price in May was $416,300, down 7.6% compared to a year ago. Regionally, on a year-to-date basis, new home sales are up 0.8% in the Northeast and 1.6% in the South. New home sales are down 2.5% in the Midwest and 20.7% in the affordability-challenged West.
Leg Con Brings 700 Members to DC More than 700 builders, remodelers and associates representing all facets of residential construction visited Capitol Hill in June to call on Congress to take steps to ease the nation’s housing affordability crisis and make housing and homeownership a national priority. NAHB’s 2023 Legislative Conference included more than 250 individual meetings with representatives and senators, during which housing advocates urged lawmakers to act on three issues: transformers, energy codes, and funding for workforce development.
HUD Secretary Fudge Addresses NAHB “We are all on the same team. We need you now more than ever.” That is the message that U.S. Housing and Urban Development Secretary Marcia Fudge delivered to NAHB members in a special address during NAHB’s recent Leadership Meeting in the nation’s capital. “Without you, I cannot do my work,” said Fudge. Noting an estimated shortage of 3.8 million homes, Fudge said that the entire government has to have a stake in addressing the housing affordability crisis.
IRS Issues Guidance on Energy Tax Questions The Internal Revenue Service released a draft regulation and a list of frequently asked questions regarding the new election taxpayers may take to transfer certain energy tax incentives to other parties. For purposes of residential construction, this option generally applies to the Investment Tax Credit (Sections 48 and 48E) and the Production Tax Credit (Sections 45 and 45Y). Thousands Visit Innovative Housing Showcase Recent visitors to the National Mall had a unique opportunity to see the latest housing innovations firsthand through the third annual Innovative Housing Showcase, presented by NAHB and HUD, and learn more about how these innovations can support efforts to improve housing affordability and sustainability. Dozens of exhibitors showcased innovative building technologies — including full-size prototype homes — to address housing affordability and disaster relief challenges, create high-performance, sustainable homes, and provide attainable solutions to new and existing buildings.
Addressing Substance Abuse Everyone agrees that substance abuse is a safety issue on jobsites. But how should you address an employee you suspect is impaired? NAHB has resources that can help identify and address substance abuse issues and create a path for return to work, including resources for tackling Opioids in the Home Building Industry and a video toolbox talk on Substance Misuse.
OSHA Offers Enforcement Update During NAHB Meeting
In September 2022, OSHA broadened the scope of its Severe Violators Enforcement Program (SVEP) and expanded its criteria for placement in the program, resulting in more employers being placed on the SVEP list. Scott Ketcham, director of OSHA’s Office of the Directorate of Construction, visited the recent spring meeting of NAHB’s Construction Safety and Health Committee in Washington, D.C., to provide more detail about the SVEP update and discuss his office’s other safety initiatives. Among the changes: the SVEP was expanded to include all OSHA standards and will be applied for all types of hazards. The update also lowered the bar for an employer to be placed in the SVEP to just two willful or repeated violations or failure-to-abate notices based on serious violations. As before, the SVEP carries elevated penal- ties and stricter inspection requirements for employers placed in the program. SVEP focuses on “recalcitrant employers who demonstrate indifference to the health and safety of their employees through willful, repeated, or failure-to-abate violations.”
Focus on Trench Safety Trenching accidents almost always involve an unthinkable event that can lead to injury or death: Being buried alive. But every trench failure is avoidable with proper planning, training and safety measures. To prevent cave-ins, jobsites should use OSHA’s “Slope It, Shore It, Shield It" method: SLOPE or bench trench walls, SHORE trench walls with supports, or SHIELD trench walls with trench boxes. NAHB has a video toolbox talk that builders can use to present to their workers and subcontractors, and additional resources in the NAHB Trenching and Excavation Toolkit.
Housing Hall of Fame Inductees The National Housing Center Board of Governors recently inducted five honorees into the National Housing Hall of Fame. The five were: 2016 NAHB Chairman Ed Brady, Stillman Knight, a long-time NAHB member and former Assistant Secretary of HUD for Multifamily Housing Programs, 2017 NAHB Chairman Granger MacDonald, Dwight Schar, founder of NVHomes, and 2015 NAHB Chairman Tom Woods. The National Housing Center Board of Governors also recently voted to induct former NAHB President and CEO Jerry Howard into the National Housing Hall of Fame during a special ceremony at the 2024 IBS.
Housing Markets Cool, But Affordability Remains Elusive
The annual State of the Nation’s Housing report from the Harvard Joint Center for Housing Studies (JCHS) highlights the growing housing affordability crisis, despite a slowdown in housing prices. “Rent growth slowed over the past year, and home prices declined in a number of areas,” said Daniel McCue, a JCHS senior research associate, in a press release. “Nonetheless, housing costs remain well above pre- pandemic levels thanks to the substantial increases over the last few years.” Higher interest rates have also eroded housing affordability in the past year, with payments on the median-priced home increasing from $2,500 to $3,000. As a result, mortgages originated to first-time home buyers dropped 22% in 2022, including a 40% year-over-year drop in the fourth quarter. Inventory has also had an impact on home prices, as single-family housing starts dropped 10.8% last year. Although multifamily construction has remained strong, the JCHS report indicates that rising vacancy rates, along with higher interest rates and tighter lending standards, suggest a forthcoming slowdown in multifamily construction.
Upcoming Meetings & Events
August 3rd Spotsylvania County Spotlight Hope Heros Kitchen August 9th Associates Committee Meeting, 9:00-10:00AM FABA Office or Zoom August 9th Membership Committee Meeting,4:30-5:30PM Renatos August 16th Education Session - How To Interpret Site Plans FABA Board Room, 11:30-1:00 August 17th Hard Hat Networking Sponsored by Dominion Steel August 18th FABA Summer Fest Rod and Gun Club August 23rd Community Service meeting FABA office or Zoom, 2:00-3:00PM
Calendar at a Glance
Membership Committee
The Membership Committee brings builder and associate members together to focus on recruitment of new members and retention of current members. This committee hold a hybrid meeting (in-person or zoom) every 2nd Wednesday at 10:30AM and every other month at 4:30 at Renatos.
Every Third Thursday of the month, join us for our networking Hard Hat Events from 5:00-7:00 PM.
Chair - Mike King, miketheknyfe@gmail.com
What a year this has been so far at FABA! This year we are so excited to welcome many new members to the association. We want to take a moment to welcome you properly. Introducing FABA University - a one-stop hub for making the most of your membership.Stay tuned for the next session date coming soon!
2024 hard hats on sale now! To claim your month email Meghan@FABAVA.com
The Associates Committee plans member events to promote doing business with members. These volunteers coordinate networking and social events for business connections. Stay tuned for new and exciting changes coming to this committee. This committee has a hybrid meeting (in-person or zoom) every 2nd Wednesday at 9:00AM.
Chair- Teressa Taylor- Griffs . teressa@ttgva.com
Associates Committee
We can't wait for Summer Fest! Get your tickets and tents now! August 18th at the Rod and Gun Club.
Associates Committee Hybrid Meeting Zoom Link: Second Wednesday of each month at 9:00 AM
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Culpeper County Spotlight light - Tuesday, September, 12 at Luigi’s Restaurant. Legislative Zoom August 24th, 8:30AM Spotsylvania County Spotlight , August 3rd Hope Hero's Southern Kitchen
Legislative Committee
Mark Snesavage Director of Government Affairs Fredericksburg Area Builders Association C:(717) 304-0581 O:(540) 898-2730 FABAVA.com
Upcoming County Zoom Meetings
Election Update with Mark
Developers Council The working mission of the Council is to stay on top of land development issues affecting local builders and developers in our region and work together to advocate for our positions as needed. The Council is open to Builder and Developer members of FABA. Jeh Hicks, Jarrell Properties , Inc., is the chairman of the Developers Council. This group meets every other month. For more information contact Mark Snesavage at Mark@FABAVA.com
Chair - Jeh Hicks, jeh@jarrellinc.com jeh@jarrellinc.comjeh@jarrellinc.comjeh@jarrellinc.com
On Tuesday, June 20th, Virginia held its primary elections. Candidates battled to win their party’s nomination for November’s general election. All 140 seats up are in the Virginia General Assembly this year as well as some local races. In the Fredericksburg region, Democrats and Republicans held contested races for the 27thand 29thState Senate Districts. Tara Durant (R) defeated Matt Strickland (R), and Joel Griffin (D) defeated Ben Litchfield (D) for the 27thDistrict. Jeremy McPike (D) defeated Elizabeth Guzman (D) and Nikki Baldwin (R) defeated Maria Martin (R) in the 29th District. Republicans also held a primary for Virginia House of Delegates District 65. Lee Peters (R) defeated Michael Kasey (R) and will now face Joshua Cole (D) in November. Statewide, incumbent Senators fell at record numbers. Four Democratic incumbent lost their primary battle and one Republican incumbent. Through retirements and election results, the Senate of Virginia could see over 40 percent turnover.
The Legislative Committee meets monthly to discuss the status of local and state level legislation that affects the building industry. For more information from each county, plan to attend the Legislative Committee meeting. This committee meets virtually every third Thursday at 8:30AM.
Disc Golf is coming up soon!September 14th, all are welcome to this free event!
Lauren Bruning , Topside FCU. Lauren.Bruning@topsidefcu.org
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth. Stay tuned for upcoming educational opportunities.
The Education Committee provides a variety of educational content for our members every month on the 3rd Wednesday of every month. On August 16th we will hear from Noland Donahoe on How To Interpret Site Plans All sessions are FREE to attend!
Nathan Dobbins ndobbins@dobbinsrealty.com
Education Committee
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Young Professionals Committee
To join the FABA Young Professionals committee email Meghan@fabava.com
Young Professionals committee is for individuals in the 21-45 age group to connect, and provides opportunities for professional development, social networking, mentoring, and personal growth for our members. Let’s kick axe with the FABA Young Professionals! You're invited to join us for an exciting evening of axe throwing! We've booked a private session at FXBG Axes, and we'd love for you to join us. The Young Professionals are defined as Industry professionals under 45 looking for opportunities to connect, collaborate, and develop professionally.
Sign up today!
As a Cornerstone benefit for Partner, Platinum and Diamond levels they are able to contribute educational content to the newsletter each month. Check out this month's contribution from Contractors Websites Plus
What’s Your Mission? Do you have a mission statement? I’ll bet 90% of you said, “Yes. I do.” Can you repeat it without reading it? I’ll bet you a week’s salary 100% of you who said yes, can’t. Here’s the thing… If you don’t know what it is,you’re not on a mission. You’re on autopilot allowing everyone but you steer your ship. If you have a mission statement it’s probably long, confusing, and unmemorable. Some legalese you copied from the internet because it ounds smart, and the bank would like it. Imagine you had a mission and a set of guiding principles that mattered to you and could catapult you to your goals while inspiring your team.Imagine having true direction. There’s a simple formula to create a great mission statement to inspire you and your team. First introduce aconflictto get the mission started and create the energy needed to overcome it. Second, define adestinationdetermining your direction and indicating the outcome. Lastly, let everyone know the outcome if you accomplish your mission by telling us what’s atstake. Here's ours: (CONFLICT)At Contractor Websites Plus, we know contractors without a plan for their brand struggle to stand out over their competition.(DESTINATION)We created the Builders Brand Schematic to help all 3.5 million contractors create a plan(STAKES)to stand out in the market, grow their business, and reach the goals they’ve always dreamed of. A mission statement is only part of a full set of guiding principles that will transform the way you live and work. If you would like some help mapping out your mission, schedule a Brand Day and we’ll help you create a full set of guiding principles. For more read “Off the Ladder” at ContractorWebsitesPlus.com
info@contractorwebsitesplus.com
Member Contributions
Did you know as a part of your Cornerstone benefit, at the Platinum Level or higher, you can submit monthly content for the newsletter? Submit your post to Meghan@fabava.com
2023 FABA Board of Directors
President Marc Simes Tricord Homes 1st Vice President Jeh Hicks Jarrell Properties 2nd Vice President Mike King Ray's Siding Secretary Tim Hall Tricord Homes Treasurer Jeremiah Horstick CORELOT Immediate Past President Scott Hine Union Home Mortgage Associate Vice President Teressa Taylor-Griffs TTG and Associates Executive Officer Maria Moore FABA Legal Counsel Charlie Payne Hirschler NAHB State Representative Dan Sandoval Republic Home Builders HBAV State Representative Scott Hine Union Home Mortgage Builder Director Michelle Hall J. Hall Homes Builder Director Allen Harrison Battlefield Homes Builder Director Steve Flanagan Built Right Homes Builder Director Dan Sandoval Republic Homes Associate Director Sara Fila Legacy Engineering Associate Director Rick Furnival Sullivan, Donahoe & Ingalls, PC Associate Director Emily Hall Spotsylvania Career & Tech Center Associate Director Allen Harrison Battelfield Homes Associate Director Greg Schmidt Pest Solutions Life Builder Director Sean Halsey Halsey Homes Life Builder Director Dan Sandoval Republic Home Builders
FABA has been working with our exclusive, private partner, Small Business Growth Partners (SBGP) to help our members reach maximum growth and potential through their one of a kind BPA Process. This has been refined for over 10 years of working exclusively with Builders, Remodelers & HBA Associate Members. As an exclusive FABA member benefit, we are offering you the chance to register for and redeem your 2021 Business Diagnostic & Plan of Actions. An annual BPA is included 100% with your FABA Member Benefits (A $2,200 value).
Learn More Here