VOLUME 1, ISSUE 3 MARCH 2023
Single-Family Starts Sluggish in New Year
Although rising builder sentiment indicates a turning point for housing later this year, lackluster single-family production in January is a sign that the housing sector faces further challenges, as elevated mortgage rates and high construction costs continue to put a damper on the market. Overall housing starts decreased 4.5% to a seasonally adjusted annual rate of 1.31 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The January reading of 1.31 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 4.3% to an 841,000 seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, decreased 4.9% to an annualized 468,000 pace. On a regional basis compared to the previous month, combined single-family and multifamily starts were 42.2% lower in the Northeast, 25.9% lower in the Midwest, 7.3% higher in the South and 5.5% higher in the West. As an indicator of the economic impact of housing, there are now 752,000 single-family homes under construction. This is 4.8% lower than a year ago. There are currently 948,000 apartments under construction, the highest levels since December 1973, and up 24.2% compared to a year ago (763,000). Total housing units now under construction (single-family and multifamily combined) are 9.5% higher than a year ago.
GCBA President’s MessagE MARCH 2023
Greetings fellow Gold Coast Builders Association Members and Potential Members, What is the difference between a trade association and a networking group? Minus the obvious answers, focus on the nuance between the two. A networking group’s goal is to network to get business. Networking is a natural byproduct of a trade association. In my more-than-two-minute address at the installation of officers I mentioned three reasons why GCBA was worth your while: Business Development, Personal Growth, and a Chance to Move our Industry. By focusing on helping our fellow members in the same trade of residential homebuilding and providing value to them you are entitled to a piece of that outward focusing value. It’s the old adage “Giver’s Gain”, but here’s where it gets tricky. Your intent matters. Let’s go back to the networking group I asked you to think about. When I started my business career, I joined a networking group and it was great, until it wasn’t. It had a simple formula – you must give business leads to get leads. I passed out hundreds of business cards and referred everyone I knew to everyone else in the group. However, there were a few hiccups. I referred tons of business to a painter but didn’t receive one lead from him, ever. I referred my cousin to an attorney in the group. Unfortunately, I didn’t vet the attorney and they did my cousin a disservice. Lastly, although the group was certainly worth my time, it was unfulfilling. After two years, I grew out of the group. I quit. Now, decades later with the proverbial view I have from climbing the leadership ladder in MetroBCA and GCBA, I can see what went wrong. I can relate the problem to a lesson that a high school teacher taught and an entire school during an assembly. The teacher had 1,000 balloons on the floor of the gymnasium. Each student in the gym was instructed to pick up a balloon, write their name on it, and then stand around the perimeter of the gym. Once every kid had an autographed balloon, they were instructed to throw the balloon to the middle of the floor. A thousand balloons quickly piled up! Now, the teacher said “Quickly, go get your balloon”! Chaos ensued. Practically no one could find their balloon, and many popped. The teacher blew a whistle and exclaimed “STOP!” Calming the students down and getting them silent they were instructed to remain silent, pick up a balloon, find the owner, hand it to them, and then walk back to the perimeter. Within minutes, without chaos, the reunited the balloon problem was solved based on the intent of the action. Intent matters. The culture of our GCBA is shifting as the collective focus is now on each other’s “balloons” of business development and personal growth, with an eye on moving our industry forward. It’s a true “Givers’ Gain”. If you look around GCBA you will see many people who have relationships with GCBA that has spanned decades. They haven’t grown-out of our trade association. They have grown with it and set examples we all can follow by focusing outward on helping everyone find their balloon of business and success. That teacher’s lesson left an impact on his students, and he must have had a great time teaching it. I’m sure he never imagined how decades later that simple lesson could influence a trade association called the GCBA. Respectfully yours, Frank R. Coppola, III GCBA 2023 President
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
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GCBA 2023 Leadership List
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
March 16 – Quarterly Board Meeting – 4PM March 20-22 – FHBA Spring Leadership – All Day April 7 – Coffee & Conversation – 8:30AM April 26 – HHHH – 5:30 PM 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
Check GCBA's Wednesday Mid-Week eMail for current Location & Registration Information.
GCBA 2023 CALENDAR OF EVENTS
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Welcome to our Newest Members!
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 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!
GCBA 2023 TOP RECRUITERS Michele Mockenhaupt – 4 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!
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
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GCBA MEMBERSHIP NEWS MARCH 2023
NAHB Creates Online Mentor Match Program Knowledge is one of the most valuable assets of any business owner. And much of it can only be gained through real-world experience and collaboration. That's why NAHB recently established the Mentor Match program to further support members' professional development needs. Mentor Match is a free, online resource exclusively for NAHB members to help them establish mentoring relationships.
IRS Releases Guidance foR WIND, SOLAR Under LIHTC The Department of Treasury and Internal Revenue Service released IRS Notice 2023-17, which details a new bonus tax credit for certain low-income multifamily projects, including Low-Income House Tax Credit (LIHTC) projects, that include eligible solar or wind energy technologies. Qualifying solar and wind equipment is eligible for a federal tax credit of up to 30% of the cost as part of the Section 48 Investment Tax Credit. Under the Inflation Reduction Act enacted into law last year, Congress established a low-income communities bonus credit program, which allows certain Section 48-eligible projects to receive an additional 10% or 20% credit.
NAHB Testifies about WOTUS Rule The Biden administration’s new WOTUS rule is so extreme that the federal government will have the authority to regulate certain roadside ditches, isolated ponds and channels that may only flow after heavy rainfall, NAHB Chairman Alicia Huey said in recent Congressional testimony. The new rule will go into effect on March 20, 2023, but could be overturned soon, depending on the U.S. Supreme Court’s decision in Sackett v. EPA, which is focused on the legality of the regulation’s significant nexus test. New Wrinkle in Transformer Shortage NAHB and other groups sent a letter to Energy Sec. Jennifer Granholm to sound the alarm that DOE’s recent rulemaking proposal to increase the energy conservation standards for electrical transformers will worsen the current supply shortage. The rule would dictate that manufacturers increase the efficiency of transformers by a mere tenth of a percentage point. But increasing efficiency by even this nominal amount “could add months to an already lengthy order cycle.” OMB Proposes New Buy-American Rule In a move that could affect single-family and multifamily affordable housing projects, the Office of Management and Budget (OMB) has proposed new standards to determine if construction materials for federally funded infrastructure projects are made in the United States. Construction materials covered by the new guidance, which is required under the Build America, Buy America Act, include lumber, drywall, glass and plastics.
What Factors Should Be Considered Before Suing for Breach of Contract?
A builder’s breach of contract is the last thing a new homeowner wants to deal with, but when you’ve made such a big investment it’s difficult to ignore without a fight. Nobody, including a builder, enters a legal agreement with the intention of breaking contract terms, but it happens, and often a breach of contract lawsuit can result. The first thing to consider before suing for breach of contract is the scope of your damages. If you’re dealing with small issues that you think the contractor should have gotten right, you may consider an alternative dispute resolution because breach of contract litigation can be costly both financially and emotionally. So, first talk with an experienced construction attorney to find out if suing is the best way forward. The other thing to consider is if the builder is still in business. A lot of builders who breach contracts will close one business entity and then open up a brand-new company. They’ll take on a new project then rinse and repeat. It’s much more difficult to sue a company that no longer exists. You still have recourse, but knowing what you’re dealing with and the ramifications is critical before jumping into litigation. Once you’re in the litigation process, you will not only need a lawyer, but you’ll need expert testimony, often from an engineer or other contractor who will testify to what’s wrong with your house and what should have been done differently. This is another cost factor to consider.
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 at andy@WymanLegalSolutions.com with any thoughts you would like to share concerning this article. Andy Wyman, Esq. is a Member of the Board of Directors, Gold Coast Builders Association.
LEGAL ROUNDUP
Builders’ Show Sees Largest Attendance in More than 10 Years
Nearly 70,000 home building professionals from around the world filled the exhibition halls of the Las Vegas Convention Center as NAHB hosted the International Builders’ Show® (IBS), the largest annual light cons- truction show in the world, Jan. 31-Feb. 2. IBS exhibit space totaled more than 600,000 net square feet, where more than 1,300 exhibitors displayed the latest in building products and technology. This year also marked the 10th anniversary of Design & Construction Week® (DCW), the co-location of IBS and the National Kitchen & Bath Association’s (NKBA’s) Kitchen & Bath Industry Show (KBIS). DCW drew nearly 110,000 attendees and nearly 2,000 exhibitors occupying more than one million square feet of indoor and outdoor exhibits. IBS attendees also took advantage of more than 100 education sessions led by experts on a wide range of industry topics. Next year, IBS and DCW will return to Las Vegas Feb. 27-29, 2024.
Industry Award Winners Announced During IBS
Many of NAHB’s most coveted awards were announced during the recent International Builders’ Show® in Las Vegas. These include BALA, The Nationals and other award programs that recognize the industry's best. More than 140 single-family, multifamily, interior design, remodeling and community projects were honored at the 2022 Best in American Living™ Awards (BALA) ceremony during IBS. The awards are sponsored by Monogram, and the media partner is Professional Builder. During the National Sales and Marketing Awards gala (“The Nationals℠"), NAHB honored outstanding residential real estate sales, marketing and design, 55+ housing projects, individual achievement and global excellence. The Nationals: powered by Wells Fargo Home Mortgage. NAHB also recognized the best in crafts- manship, innovation and excellence in remodeling at the NAHB Remodeling Awards, sponsored by Ferguson Bath, Kitchen & Lighting Gallery. Other awards announced during IBS: SAFE. The 17th annual NAHB/Builders Mutual Insurance Company Safety Award for Excellence (SAFE). Best of IBS™. The 10th annual Best of IBS™ Awards, including Best in Show.
What’s Happening to Home Buyer Preferences Post Pandemic?
By Sam Yates, Communications Committee Chair
Many home buyers are looking at 2023 as the year they are really out from under the pandemic. Not coincidentally, home buyer preferences have continued to shift home building trends following the height of the pandemic in a more positive fashion. The National Association of Builders (NAHB) expects home size and amenities in homes to grow in 2023 — a reflection of the preferences of those who can afford higher interest rates — before dropping again in 2024 as affordability improves with lower mortgage rates and more buyers re-enter the market. Not only is housing affordability evolving post-pandemic, but so are home buyer preferences. For example, NAHB found that the demand for more flexible and better-equipped home spaces is rising. The changing tastes apply to first-time and repeat buyers — most of whom prefer an open-kitchen family room, which can be reconfigured and better utilized to provide more space for additional rooms. According to the most recent study of NAHB’s What Home Buyers Really Want, other home features that resonate with both first-time and repeat home buyers include: Laundry rooms Exterior lighting Ceiling fans Patios Walk-in pantries Hardwood flooring on the main level Home buyers are also interested in how their home can support their well-being and how it interacts directly with the outdoors. As a result, walking paths and other outdoor spaces connected to homes have become increasingly popular. Buyers are also looking for natural materials in their new homes and other biophilic design options; a style focused on bringing nature indoors. Builders saw tremendous demand for exterior amenities — such as patios, decks and porches — in 2022, along with home offices, reflecting post-pandemic work-from-home trends. In terms of the space buyers are seeking, NAHB found that the average size of a new home dropped slightly from 2,525 square feet to 2,480 square feet in 2022, and the percentage of new homes with 3 or more full bathrooms and at least a 3-car garage dipped to 33% and 17%, respectively. Meanwhile, the percentage of homes with 4 or more bedrooms rose slightly to 48%, partly because of the flexibility that bedrooms can provide. If you’re looking for a new home or would like more information on design trends, contact the Gold Coast Builders Association at www.GCBAFlorida.com
The 2023 Aurora Awards are open for entry! This annual awards program recognizes the best in Sales and Marketing, Residential, Commercial and Remodeling industries in the Southeast! Don't miss this opportunity to feature your best work in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas, Virginia and the Eastern Caribbean!
FHBA SPRING LEGISLATIVE CONFERENCE REGISTRATION IS OPEN
Tuesday March 7, officially ushers in the start of the 2023 Legislative Session. To those of us lobbying on your behalf, it feels like session has been in for several weeks. But NO, that’s just several rounds of busy committee weeks where we saw major movement on the FHBA’s top priority, the Construction Defects Bill. If all goes according to plan, this week both HB85 and SB 360 will have cleared all committees of reference and will be postured to be heard on the floor by both chambers. However, Construction Defects is but one of the issues the industry must resolve during this year’s legislative session. The four key issues we have taken up on FHBA's legislative agenda are, Construction Defects, a fix for the Testa vs Town of Jupiter Island case, the Local Licensure Bill and the DEP Stormwater Rule. Be assured, there are additional things we would like to accomplish. You must also know, bills are being introduced at breakneck speed and we have not been able to analyze each of them. With that being said, this list is a living document. Buckle up for the ride! I know that many of you are preparing to attend FHBA Spring Conference and legislative visits March 20-22. It you have not registered, know that this is your chance to join us in our fight to maintain a favorable home building economy in the great State of Florida. I look forward to seeing you in Tallahassee, Rusty
Does reading about all that is going on in Tallahassee leave you wondering how you can be a part of ensuring laws passed are good for your business? Join fellow FHBA members at the State Capitol March 20-23 for the 2023 FHBA Spring Legislative Conference. In addition to FHBA business meetings, members take to the hill to advocate on behalf of the FHBA legislative agenda. This is the perfect way to not only see "how the sausage is made" but to be a part of the process.
A Note From FHBA CEO/Chief Lobbyist, Rusty Payton, As We Prepare For The Official Start of the 2023 Legislative Session
Enter The 2023 Aurora Awards
Top States for NGBS Certification Builders across the United States are continually adding to the pipeline of projects certified to the National Green Building Standard (NGBS), with more than 400,000 homes built to the standard since its launch in 2009. Overall, since the inception of NGBS, the top 10 states for both multifamily and single-family certifications combined are: 1. Texas 6. Maryland 2. Florida 7. Colorado 3. North Carolina 8. Indiana 4. Georgia 9. South Carolina 5. Virginia 10. Tennessee The NGBS provides builders with a national standard to define sustainable projects.
Remodelers Hall of Fame Inductees NAHB Remodelers recently inducted Vince Butler, CAPS, GMB, GMR, a remodeler from Clifton, Va., and Tim Faller, a remodeler from Linthicum, Md., into the National Remodeling Hall of Fame. Butler has led Butler Brothers Corporation as president since 1984. He was chair of NAHB Remodelers in 2006 and is a past president of the Northern Virginia Building Industry Association. Faller is the Senior Consultant and Master of Production for Remodelers Advantage Inc. His insights have influenced many around the world through personal consulting, books, and his popular podcast, The Tim Faller Show.