HBA Elections and Annual Meeting

To: Home Builders Association Members
From: James Speer, APB, President and Vice Chairman, Leadership Development Committee
Bob Barreto, Immediate Past President and Chairman, Leadership Development Committee

As we approach the end of another year, your association will hold elections for our 2019 Board of Directors. Our Annual Meeting is set for Thursday, October 25, 2018, 5:30 p.m., at Elevations Cabinetry and Design by GBS. The Annual Meeting will be held in conjunction with the annual Chili Cook Off and Oyster Roast.

The Annual Meeting agenda will consist of election of the 2019 Board of Directors. We expect to convene the Annual Meeting at approximately 6:45 p.m., after the winners of the Chili Cook Off contest are announced.

As a member of your Home Builders Association, you are encouraged to exercise your privilege of voting on the slate of officers and directors who have agreed to lead your association in 2019. To do that, you can attend the annual meeting on October 25, or you can submit a proxy form to our Secretary-Treasurer, Ben Moseley, who will cast your vote for you if you are unable to attend the Annual Meeting.

A Report of Nominations and proxy card have been mailed to each member in good standing at the mailing address we have on file for you. Or you may cast a proxy online.

Voting Online
The Report of Nominations is included below.  To vote online, click this link and follow the instructions.

If you attend the annual meeting, the vote you cast there will be the vote that is counted. If you are not able to attend the Annual Meeting, please vote by proxy.

Report of Nominations

The Leadership Development Committee met July 25, 2018, and September 6, 2018, as well as informally by email. Michael Dey, Executive Vice President and Chief Executive Officer, also issued a call for nominations on behalf of the committee by publishing the call in Builder Review, the association’s newsletter. The following is a report of nominations made for the various offices of the Home Builders Association of Greenville, S.C., Inc. These nominations were reviewed and ratified by the Board of Directors at their meeting on September 11, 2018, and are recommended to the General Membership of the Home Builders Association of Greenville to be voted upon and approved in the manner provided by the Bylaws and policies of the association.

      Position                                         Member                                               Term Ends

1.      President                                       Matt Shouse, APB                            12/31/2019

LS Residential

2.      President Elect                              Bill Kane, APB                                  12/31/2019

Ryan Homes

3.      Vice President                               Ben Moseley                                       12/31/2019

The Heirloom Companies

4.      Associate Vice President              Dustin Hughes                                   12/31/2019

Jeff Lynch Appliance and TV Center

5.      Immediate Past President             James Speer, APB                            12/31/2019                 

Carson Speer Builders

6.      Secretary-Treasurer                       Scott Presley                                      12/31/2019

Oconee Federal

7.      Director                                         Will Cord, APB                                 12/31/2021

Daniel Builders

8.      Director                                         Jarrett Smith, APB                           12/31/2021

Smith and Webb, LLC

9.      Director                                         Alan Wilson                                       12/31/2020

Clark’s Termite and Pest Control

10.  Director/SMC Chairman               Lindsay Simpson, APB                    12/31/2019

Ryan Homes

11.  Director/PWB Chairman              Debra Owensby                                 12/31/2019

Blackstream LLC

Additional Directors continuing in unexpired terms:
The Leadership Development Committee also reports that the following director, who has previously been duly elected, will serve in 2019 in the following position:

Position                                         Member                                               Term Ends

1.      Director                                         Chris Bailey, APB                             12/31/2019

Stoneledge Properties

2.      Director                                         Dave Hagan, APB                             12/31/2020

Ryan Homes

Voting rules from the Bylaws:
The Designated Member of each member company, and Affiliate Members of each member company, are entitled to one vote each. Members may vote in one of the following ways:

1. In person at the Annual Meeting on Thursday, December 25, 2018, 5:30 p.m., at Elevations Cabinetry and Design by GBS, 711 Congaree Road, Greenville.
2. Authorize Secretary-Treasurer Ben Moseley to cast your vote for you by executing a proxy statement by . The deadline to submit a proxy card is Wednesday, October 24, 2018, 5 p.m.
3. Authorize Secretary-Treasurer Ben Moseley to cast your vote for you by executing a proxy online by clicking here and following the instructions. The deadline to submit a proxy is Wednesday, October 24, 2018, 5 p.m.

Quorum: A quorum is 10 percent of the members in each membership category (Builder, Associate, and Affiliate).

Your HBA supports Meals on Wheels

Did you know that your Home Builders Association supports Meals on Wheels by sponsoring a Meals on Wheels route?  Your HBA's involvement with Meals on Wheels began in 1971 when the "Women's Club," then the wives of builders, delivered the means.  The HBA continues to sponsor a route today, with HBA members continuing to deliver the meals:

• First Tuesday of the month: Billy Dunn, Dunn Custom Builders 
• Second Tuesday: Michael Galloway, Galloway Custom Homes, and Scott Presley, Oconee Federal
• Third Tuesday: Richard Bernath, Southern Traditions Window Fashions
• Fourth Tuesday: Chuck Childress, BB&T 

When you see them, thank these members for their volunteerism.

The Community Service Committee is in search of additional volunteers to fill in when these members are unable to deliver meals and to volunteer in months with a fifth Tuesday.  Perhaps we can identify enough volunteers to add a second route.

Interested?  Contact Stacey Gmitter at the HBA Office.

Top 10 Significant Modifications to the 2018 IRC

Last week the S.C. Building Codes Council met to review dozens of proposed changes to the International Series of building codes, including the International Residential Code, the building code that applies to one- and two-family dwellings in South Carolina.

Your Home Builders Association, working with your Home Builders Association of South Carolina, proposed several modifications, including one that would have removed Arc-Fault Circuit Interrupters from the building code.

Below is a list of the top 10 significant changes and modifications to the 2018 IRC.  These changes, as well as dozens of others, will be presented to the General Assembly in January.  The effective date of the new building code is expected to be January 1, 2020.

1. Sections 301.2 and 301.2.2.1-Wind & Seismic Maps. The HBA of SC supported a study to be funded by the S. C. General Assembly and produced by The Citadel to review and address the probabilistic hazard maps. This will ensure that houses in S. C. are built on the needs and hazards of our state. 
2. Section 301.2.1.2 Protection of openings. This change replaces 2-story limit on use of wood structural panels for wind-borne debris protection with limit based on 45-foot mean roof height. 
3. Section 302.1 Exterior Walls. This modification maintained the minimum fire separation distance for improvements constructed on a lot where the local governing authority has prior to the implementation of IRC 2012. 
4. Section 302.5.1 Opening Protection. The existing modification was maintained to remove the use of a selfclosing device. 
5. Section 313 One-and -Two Family Dwellings Automatic Fire Systems. This modification maintains that residential fire sprinklers continue to be an option, but are not mandated. 
6. Section R318.1 Protection Against Subterranean Termites. This modification adds an additional method to allow treatments to be conducted under the S.C. Pesticide Control Act and enforced by the Clemson University Department of Pesticide Regulation. 
7. Section R318.4 Foam Plastic Protection. This modification adds language to allow foam plastics to provide an inspection gap for crawlspace applications. 
8. Section M1502.4.2 Duct Installation. Language would allow exhaust ducts to be supported at intervals not to exceed 8 feet and ducts will no longer be required to be joined with screws. 
9. Appendix Q Tiny Houses. By adding Appendix Q builders will have more options and flexibility for small home construction. 
10. Section E3902.16 Arc-Fault Circuit Interrupter Protection. Language rolls back code to earlier version that would remove the use of AFCIs in kitchens and laundry rooms.

Be sure to thank these members, who have served on your HBA's Building Codes Committee and have actively support the work of reviewing and modifying the new building code:

• Matt Shouse, APB, Chairman
• Mike Freeman, APB, member of the NAHB Building Codes and Standards Committee
• Joe Hoover, APB
• Matt Ruth, APB
• Rick Quinn, APB
• Steve Carson, APB
• James Speer, APB
• Lee Hornbeck, APB

M. Marie Bormann

M. Marie Bormann, mother of Fritzi Bormann Barbour, passed away August 30.  She was 90 years old.

Fritzi Barbour is Broker in Charge of Berkshire Hathaway Home Services, C. Dan Joyner Realtors on N. Pleasantburg Drive. 

The family has planned a private service at Arlington National Cemetery.  Ms. Bormann will be interred with her late husband, Lt. Col. Frederick E. Bormann, USAF, Retired.

New Code Enfordement Rules in Greer

The City of Greer has met twice in the last two months with Home Builders actively building in the city.  The city recently announced several new rules and procedures to help improve delivery of services to the industry.

1. The deadline to inspect next-day inspections has been extended to 7 p.m.  Inspections for Monday or after a holiday will be accepted until 7 p.m. the night before as well.  However, to avoid a reinspection fee, cancellations of inspection requests must be made by 8:30 a.m.
2. The city also has committed to attempt to have the same inspector perform reinspections.  However, this is not a guarantee.

The city also is working with Home Builders to review new rules announced by Greer CPW related to release of meters.

International Builders’ Show OSHA Releases Silica Standard FAQ for Construction

The Occupational Safety and Health Administration on Monday released a set of 53 frequently asked questions – and their answers – to provide guidance to employers and employees on its respirable crystalline silica standard for construction.

Through the Construction Industry Safety Coalition, NAHB was an important contributor to the formulation of this FAQ. The development stemmed from litigation filed against OSHA by numerous construction industry trade associations challenging the legality of the new silica rule.

NAHB will continue to look for ways to work with OSHA to improve the workability of this significant rule.

The FAQ is extensive and organized by topic. A short introductory paragraph is included for each group of questions; the answers appear in an expanded box when each question is clicked.

Importantly, the FAQ clarifies that many common construction tasks are likely to be outside the scope of the standard. This includes mixing small amounts of mortar; mixing small amounts of concrete; mixing bagged, silica-free drywall compound; mixing bagged exterior insulation finishing system base and finish coat; and removing concrete formwork.

In addition, tasks in which employees are working with silica products that are handled while wet are likely to generate exposures outside of the scope of the standard, including finishing and hand wiping block walls to remove excess wet mortar, pouring concrete, and grouting floor and wall tiles. The FAQ also states that many silica-generating tasks performed for 15 minutes or less a day will fall outside the scope of the standard.

Other clarifications in the FAQ highlighted by NAHB staff include:

Table 1. The requirement that employers “[o]perate and maintain” tools “in accordance with manufacturer’s instructions to minimize dust emissions,” applies only to manufacturer instructions that are related to dust control. Other information in these instructions, including recommended respiratory protection, do not have to be followed for purposes of the standard.

OSHA also has agreed to issue a Request for Information on Table 1 to revise the table to improve its utility.

Written Exposure Control Plan. The standard does not require employers to develop a new written plan for each job or worksite. It requires only that employers have a written exposure control plan applicable to each worksite. Employers may develop a single, comprehensive, written exposure-control plan that covers all required aspects of the plan for all work activities at all worksites.

Also, the standard does not preclude employees from entering work areas where silica-generating tasks are occurring when it is necessary for them to do so. Rather, the rule calls only for minimizingthe number of employees in the relevant work areas.

All home builders should carefully review the new FAQ at https://www.osha.gov/dsg/topics/silicacrystalline/construction_info_silica.html.

Interested in serving on the HBA Board of Directors?

Dear Home Builders Association of Greenville Membership,

The Home Builders Association Leadership Committee has begun work on identifying and recommending to the membership a slate of officers and directors for 2019. Elections will be held at our Annual meeting this Fall.


The following positions on the Home Builders Association of Greenville Board of Directors are open for nominations:

• Vice President
• Associate Vice President
• Secretary/Treasurer
• Director, (2 positions)

In addition, the Leadership Development Committee recommends to the Board of Directors members to be elected to the Home Builders Association of South Carolina Board of Directors and the National Association of Home Builders Board of Directors. You also may contact us about serving on the boards of trustees of either the Sales and Marketing Council of the Upstate or the Professional Women in Building Council of the Upstate.

If you have an interest in serving in one of these, or know of a member we should consider, please contact Michael Dey, Executive Vice President and Chief Executive Officer of the Home Builders Association of Greenville, or me or a member of the Nominating Committee.  Click here to send an email to Michael Dey about nominations.

I would like to thank the members of the Nominating Committee for their participation:

• Bob Barreto, Chairman, Falcon Development
• James Speer, APB, Vice Chairman, CarsonSpeer Builders
• Joe Hoover, APB, Hoover Custom Construction
• Alan Wilson, Clark's Termite and Pest Control
• Matt Shouse, APB, LS Residential
• Holly May, Blackstream LLC
• Bill Kane, APB, Ryan Homes

Bob Barreto, Immediate Past President.

Surging lumber prices threaten housing affordability

by Rob Dietz, Chief Economist, National Association of Home Builders

The most serious headwind facing housing markets today is the escalation of framing lumber prices—up 59% since the start of 2017. Recent NAHB surveys suggest the price for lumber has overtaken the availability of labor as the primary business challenge for home builders. Since the beginning of last year, rising lumber prices have added more than $7,000 to the price of a typical new home and more than $2,000 to the price of a typical apartment.

There are a number of reasons why lumber prices have jumped, including a rail car shortage in Canada, but the primary factor is the 21% effective tariff rate placed on Canadian softwood lumber. The ongoing concerns over trade wars represent a macroeconomic risk to the gains resulting from the recent tax legislation, and lumber is a prime example.

Nonetheless, builder confidence remains strong, despite total housing starts falling 3.7% in April. Though multifamily starts declined 11% last month, that market is up 10% year-to-date, outperforming our forecast. And single-family starts are 8% above their year-to-date totals from a year ago. However, recent data show a gain in average new-home size, which is an early indicator of weakness in the entry-level market due to rising input costs.

U.S. House Price Index: Prices Rose 1.7 percent in the first quarter

U.S. house prices rose 1.7 percent in the first quarter of 2018 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). House prices rose 6.9 percent from the first quarter of 2017 to the first quarter of 2018. FHFA's seasonally adjusted monthly index for March was up 0.1 percent from February.

The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.

See video for the first quarter featuring Dr. Doerner.

Significant Findings

Home prices rose in all 50 states and the District of Columbia between the first quarter of 2017 and the first quarter of 2018. The top five areas in annual appreciation were: 1) Nevada 13.7 percent; 2) Washington 13.1 percent; 3) Idaho 11.1 percent; 4) Colorado 10.6 percent; and 5) Utah 9.9 percent.

Home prices rose in each of the 100 largest metropolitan areas in the U.S. over the last four quarters. Annual price increases were greatest in Las Vegas-Henderson-Paradise, NV, where prices increased by 17.1 percent. Prices were weakest in Tulsa, OK where they rose 0.8 percent.

Of the nine census divisions, the Pacific division experienced the strongest four quarter appreciation, posting a 9.5 percent gain between the first quarters of 2017 and 2018 and a 2.6 percent increase in the first quarter of 2018. Annual house price appreciation was weakest in the East South Central division, where prices rose 5.3 percent between the first quarters of 2017 and 2018.

Strong Wage Growth Boosts Housing Affordability

Strong wage growth more than offset an increase in mortgage interest rates to boost nationwide housing affordability in the first quarter of 2018, according to the NAHB Housing Opportunity Index (HOI).

In all, 61.6% of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $71,900. This is up from the 59.6% in the fourth quarter of 2017.

In Greater Greenville, a slight drop in housing prices coupled with a $4,400 increase in annual wages resulted in an improvement to the index from 70.6% to 75.7% during the first quarter.  House prices dropped from $202,000 to $194,000 as builders responded to demand from millennials for housing that they can afford.  Greenville is the 107th most affordable housing market in the country, down from 98th last quarter as other markets even better improvements.

Charleston's affordability also improved as wages rose by nearly 10 percent.  Charlotte also improved, along with Atlanta.  Columbia's affordability fell slightly to 82.5%.  Columbia is among the 50 most affordable housing markets in the country and 10th in the Southeast.

“Continued job growth, rising wages and strong consumer confidence are fueling housing demand. In turn, this should lead to more buyers entering the housing market in the coming months,” said NAHB chairman Randy Noel. “However, builders continue to face chronic labor and lot shortages, rising prices for building materials and excessive regulations.”

“At the national level, median family income rose an impressive 5.7% to $71,900 in 2018 from $68,000 last year, and this wage growth helped to boost housing affordability,” said NAHB chief economist Robert Dietz. “A growing economy, along with tight inventories and increasing household formations, will lift housing production in the year ahead. But we also expect mortgage rates to continue to rise, and this will place downward pressure on affordability.”

Average mortgage rates jumped by nearly 30 basis points to 4.34% from 4.06% in the fourth quarter of 2017.

Of the 237 metropolitan areas recorded in the first quarter HOI, 167 markets registered a gain in affordability from the fourth quarter of 2017, 68 posted a loss and two were unchanged.

See nahb.org/hoi for tables, historic data and details.

Coleman Shouse, Michael Neiri to be inducted into the South Carolina Housing Hall of Fame

Coleman Shouse, APB

J. Coleman Shouse, APB, will be inducted into the South Carolina Housing Hall of Fame this summer at the Home Builders Association of South Carolina State Convention. Coleman was nominated for the honor by the Board of Directors of your Home Builders Association of Greenville.

Michael Nieri, founder of Great Southern Homes, also will be inducted into the Housing Hall of Fame. Nieri was nominated by the Building Industry Association of Central South Carolina (Columbia).

Coleman Shouse is Land Development and Entitlement Manager with LS Residential. He was President of the HBA of Greenville in 2006. He also was the BB&T Builder Member of the Year in 2006. For the past several years Coleman has been an active participant and leader of the association's government affairs efforts.

Prior to his move into home building, Coleman was Executive Director of Greenville County's Planning Commission from 1974 until 1983. He also led the American Institute of Architects as President in 1977.

Coleman was honored by Governor David Beasley in 1998 with the Order of the Palmetto, the highest civilian honor bestowed on someone by the State of South Carolina.

Michael Nieri

Michael Neiri is founder and President of Great Southern Homes, an active builder member in Columbia and Greenville. Earl McLeod, Executive Director of the BIA of Central SC, says of Nieri that he is "an asset to the entire industry and his community."

The S.C. Housing Hall of Fame honors South Carolinians who have made a life-time commitment to housing and the home building industry in South Carolina. Recent recipients from Greenville include C. Dan Joyner, Howard Cox, Keith Smith, APB, and Dan Rawls. For more about the Hall of Fame, click here.

Coleman and Michael will be inducted at the State Convention on July 15 in Savannah. Click here to register.

State Convention is in Savannah July 13-16

The Home Builders Association of South Carolina State Convention will be in Savannah this summer at The DeSoto hotel.

Dates: July 13-16

Events will feature a luncheon to honor Pinnacle Award recipients and a dinner to honor two new inductees to the South Carolina Housing Hall of Fame. The event also will feature two days of education sessions on topics like understanding generational differences, a forum on construction issues, an economic forecast by Dr. Elliott Eisenberg, and a legislative and regulatory recap by your state association's legislative lobbying team.

Click here to register.

Congressman Jeff Duncan accepts Defender of Housing Award from (from left to right) Rick Quinn, APB, Quinn-Satterfield, and Dave Hagan, APB, and Scott Daniel, APB, of Ryan Homes.

Your HBA leaders and PAC donors met this week with Congressman Jeff Duncan.

During the meeting our members discussed with Duncan the need to resume negotiations with Canada over the lumber tariff, the need for a long-term renewal of the National Flood Insurance Program, the labor shortage and the need to expand the guest-worker program and support training in the building trades, and a long-term solution to the the mortgage-finance system.

During the meeting, HBA of South Carolina President Rick Quinn, APB, presented Congressman Duncan with the NAHB Defender of Housing Award. Thank you Ryan Homes for hosting the meeting.

Fifth Annual Bridge Awards Recipients Announced

James Speer, APB

By James Speer, APB
President, Home Builders Association of Greenville
Partner, CarsonSpeer Builders


Each year the Home Builders Association of Greenville honors members for their contributions and achievements with the Bridge Awards presented by GBS Building Supply. The Sales and Marketing Council of the Upstate, a group within the Home Builders Association dedicated to education and professionalism in new home sales and marketing, recognized many of its members with 2017 Bridge Awards.

Nichole Moore, SMC Chairwoman, Tommy Coker, GBS, Terrie Easley, Greenville News, Kelly Bäcker, APB, Whitney Trexler, Greenville News, and Charlotte Norwood, Greenville News.

Tommy Coker, GBS, Nichole Moore, SMC Chairwoman, Michael Johnson, and Terrie Easley, Whitney Trexler, and Charlotte Norwood of the Greenville News.

The Greenville News Sales Agent of the Year 
New Home Sales Agent of the Year: Kelly Bäcker, APB, Ryan Homes
General Brokerage Sales Agent of the Year: Michael Johnson, The Haro Group of Keller Williams
Sponsor: The Greenville News

Tommy Coker, GBS, Nichole Moore, SMC Chairwoman, Tonya Lambrecht, APB, and Terrie Easley, Whitney Trexler, and Charlotte Norwood of the Greenville News.

Tommy Coker, GBS, Nichole Moore, SMC Chairwoman, Haro Setian, and Terrie Easley, Whitney Trexler, and Charlotte Norwood of the Greenville News.

The Greenville News Sales Executive of the Year 
New Home Sales Executive of the Year: Tonya Lambrecht, APB, Ryan Homes
General Brokerage Sales Executive of the Year: Haro Setian, The Haro Group of Keller Williams
Sponsor: The Greenville News

Nichole Moore, SMC Chairwoman, Amanda McCall, Tommy Coker, GBS, and James Speer, APB.

Lender of the Year
Amanda McCall, Prime Lending

The Haro Group of Keller Williams Historic District.

Ryan Homes.

Sales Team of the Year
Sales Team of the Year, General Brokerage: The Haro Group of Keller Williams Historic District
Sales Team of the Year, New Home Sales and Marketing: Ryan Homes

Million Dollar Circle
Sales and Marketing Council of the Upstate members who achieved new home sales of between $1 million and $5 million 2017:

• Tim Sterr, The Haro Group of Keller Williams Historic District
• Analeisa Latham, The Haro Group of Keller Williams Historic District
• Benjamin Patat, The Haro Group of Keller Williams Historic District
• Kayla Slice, The Haro Group of Keller Williams Historic District
• Cory Wickline, The Haro Group of Keller Williams Historic District
• Kathryn Farrand, The Haro Group of Keller Williams Historic District
• Julie Thaxton, The Haro Group of Keller Williams Historic District
• Nate Emery, The Haro Group of Keller Williams Historic District
• Aubree Lewis, The Haro Group of Keller Williams Historic District
• Jon Melton, The Haro Group of Keller Williams Historic District
• Houston Goodwin, The Haro Group of Keller Williams Historic District
• Marcia Jarisch, APB, Meritage Homes
• Pamela Fulmer, APB, Meritage Homes
• Sherry Criminger, APB, Meritage Homes
• Rita Norton, APB, Meritage Homes
• Crystal Daniel, APB, Meritage Homes
• Sheridan Burgos, APB, Meritage Homes
• The MacDonald Team, Berkshire Hathaway Home Services
• Tim Keagy, Berkshire Hathaway Home Services
• Melissa Morrell, Berkshire Hathaway Home Services
• Anthony Hackney, Berkshire Hathaway Home Services
• Wyatt Pollitz, Modern Real Estate Consultants
• Courtney Hughey, Modern Real Estate Consultants
• James Akers, Jr., Modern Real Estate Consultants
• Lee Vining, Modern Real Estate Consultants
• Bradley Smith, Cross Creek Realty
• Lisa McDowell, Allen Tate

SMC members who achieved new home sales of between $5 million and $10 million 2017:

• Lorraine Lewis, APB, Meritage Homes
• Anita Stoddard, APB, Meritage Homes
• Hunter Hurst, APB, Meritage Homes
• Emily Wilbourne, APB, Meritage Homes
• Margaret “Peg” Higgins, APB, Meritage Homes
• Kimberly Ryan, APB, Ryan Homes
• Denita Kozeny, APB, Ryan Homes
• Mary Beth Berry, APB, Ryan Homes
• Jessica Franco, Blackton Property Partners
• Christine Cashman, APB, Cothran Properties
• Stacie Thompson, ReMax Moves

SMC members who achieved new home sales of between $10 million and $20 million 2017:

• Kate Edge, APB, Ryan Homes
• Valerie McCall, APB, Ryan Homes
• Joe Blackton, Blackton Property Partners
• Michael Johnson, The Haro Group of Keller Williams Historic District

SMC members who achieved new home sales of between $10 million and $20 million 2017:

• Kelly Bäcker, APB, Ryan Homes