Wednesday, November 20, 2013

HBA Sues EPA on Clean Air Act

Your Home Builders Association is part of an industry coalition against the EPA in a case before the Supreme Court. This time the battle has to do with the Clean Air Act. The EPA has certain preconstruction permitting requirements which are designed to lower carbon dioxide emissions, but as you might expect, have unintended consequences.  Click on the link below to watch a report on the lawsuit.

http://www.nahb.org/showpage_details.aspx?showpageID=21685

In 2009-2010, EPA issued four separate regulations in order to regulate greenhouse gas (GHG) emissions from motor vehicles. Even though the Auto Rule ostensibly sets standards for motor vehicles only, EPA has interpreted this regulation to trigger requirements for stationary sources as well. Traditionally, "stationary sources" are limited to large industrial factories and utilities. But, because the Clean Air Act contains a numeric triggering threshold for a pre-construction permit known as the "Prevention of Significant Deterioration" program permit, and because the principal GHG emission, carbon dioxide, is emitted by structures in an amount triggering this threshold, stationary sources in this context would include multifamily structures and even some single family homes. This result would bring most multifamily, mixed use, some single-family home, and potentially even master-planned community development to a halt.

One of the four regulations, known as the Tailoring Rule, raises the statutory thresholds that automatically trigger PSD permitting requirements by relying on judicial doctrines such as "absurd results" and "administrative necessity." While raising the statutory thresholds effectively exempts residential construction from PSD permitting obligations, this purported relief is uncertain and temporary. EPA does not provide a permanent exemption for small sources, only a promise to not regulate until 2016. Finally, EPA's interpretation of its ability to ignore the statutory thresholds represents a dramatic expansion of its authority, which if upheld, would make it extremely difficult for the courts and even Congress to limit EPA's actions.

Your Home Builders Association's partner, the National Association of Home Builders, joined an industry coalition to challenge all four regulations on the grounds that EPA misinterpreted its obligations under the Clean Air Act.

On June 26, 2012, the court issued one opinion deciding all four petitions. The court found that EPA's Endangerment Finding and Auto Rule were valid, and that all parties lacked standing to challenge the Tailoring and Timing rules. The industry coalition to which NAHB belongs filed a petition for rehearing on Aug. 10, 2012, and a divided full court issued its decision on Dec. 20, 2012. While a majority of judges voted to deny the petition, two judges took the unusual step of writing detailed dissents to the petition's denial. One dissent in particular supported the industry coalition's arguments.

On April 18, 2013, NAHB as a member of the industry coalition filed a cert petition with the U.S. Supreme Court. EPA filed its opposition to cert on July 22, 2013, and the coalition filed its reply on Aug. 6, 2013.

On Oct. 15, 2013, the Supreme Court agreed to hear this case on the following issue: “Whether EPA permissibly determined that its regulation of greenhouse gas emissions from new motor vehicles triggered permitting requirements under the Clean Air Act for stationary sources that emit greenhouse gases.” Briefing will take place through the winter, and oral argument will occur in February 2014. This marks NAHB's second trip to the Supreme Court as a petitioner.

Spending on Home Improvements Continues to Exceed Spending on New Construction

In the third quarter of 2013 investment in home improvements was $178 billion, while construction spending on new single family and town home building was $172 billion.  Each were about one percent of GDP. Similarly, in the first three months of 2013 spending on home improvements was $161 billion, slightly above the $157 billion spent building new home building.

Normally new spending on new home building is double spending on home improvements. Worse, to date in 2013, new home building spending is flat.     
 
Elliot F. Eisenberg, Ph.D.
GraphsandLaughs, LLC

Thursday, November 14, 2013

GBS Building Supply named Presenting Sponsor of 2013 Bridge Awards



As a way of recognizing the best craftsmanship and professionalism in the industry, The Home Builders Association would like to present the First Annual Bridge Awards presented by GBS Building Supply . This Awards ceremony will recognize the best and brightest of the categories, outlined below.
·         New Homes
·         Full Home Remodel
·         Partial Home Remodel
·         Green Building
·         Special Feature
·         Sales and Marketing
o   Web-Based Marketing Program
o   Community Promotion (Community of the Year)
o   Special Promotion
o   Individual Sales Achievement (Million Dollar Circle)
·         Individual (in addition to HBA recognition)
o   Builder of the Year
o   Associate of the Year
o   Remodeler of the Year
o   Sales Agent of the Year
-  Unit Volume
-  Dollar Volume
o   Sales Executive of the Year
-  Unit Volume
-  Dollar Volume
o   Lender of the Year
The New Home, Full Home Remodel, Partial Home Remodel, and Green Building Categories will be broken down into price after all entries are received.

For more information on entry and sponsorship opportunities click here . Entries will be judged January 6-10 and the winners will be recognized at the 2013 Bridge Awards Ceremony on January 30, 2014. Don’t miss your opportunity to showcase the craftsmanship and professionalism you put into your projects, enter today!

HBA Secures New Favorable Policy on Irrigation Meters

The Greenville Water System adopted a new policy on Irrigation Meters that will save home builders installing irrigation systems more than $1,320 per house and homeowners hundreds of dollars a year in sewer treatment fees.  The Irrigation Meter Policy was adopted September 10, 2013.

The policy allows builders into install a "Y" fitting at the end of a standard water main tap and install two meters on the tap.  Both meters may be installed in a common box.  The builder will pay a tap fee of $100, two meter fees totaling, $700, but just one capacity fee of $1,320, rather than two capacity fees.  If water service already exists and a second meter is being installed on an existing tap, the meter fee for the second meter is $500, but the capacity fee is waived (the contractor has the option of excavating and back filling the meter location, in which case the meter fee is discounted by $150).  Both meters must be installed on the same tap, however.  Larger taps will have a different fee structure, but the capacity fee is still waived if both meters are on a common tap.

A condition of the new policy is that the irrigation system must be governed by a weather-based controller tied to a rain sensor.

This policy change is the product of ongoing and regular discussions HBA staff and the Government Affairs Committee are having with Greenville Water System officials.  Similar discussion are ongoing with other utilities, municipalities, counties, and school districts.  All are the dividend the Home Builders Association produces for its members.

Click here to download the Irrigation Meter Policy and instructions.

Wednesday, November 13, 2013

Support Rep. Bill Sandifer

If you don’t know Rep. Bill Sandifer, you should.

Rep. Sandifer has been awarded the Hammer and Trowel and has been recognized for his career-long contributions to the home building industry by being inducted into the S.C. Housing Hall of Fame.

Chairman Sandifer also is our “go to guy” for legislation that benefits our industry and members. Now Rep. Sandifer is being harassed by anti-business, anti-growth and anti-building groups. Among other things, Chairman Sandifer personally led the legislative efforts to stop the Fire Sprinkler Mandate in 2011.  In 2008 he sponsored the legislation that shorted the Statute of Repose by 5 years.

We need the Chairman’s help to support our initiative on curtailing the expansion of the Building Code, addressing abusive business license fees, as well as several other bills that directly affect our industry.

You are invited to a reception honoring Representative Bill Sandifer, Chairman, SC House Labor, Commerce and Industry, on Tuesday, November 19, 5:30 p.m. until 7:00 p.m., at the The Solé Gril, 700 Bypass 123, Seneca, SC. Even if you cannot attend the event, please consider making a contribution to Chairman Sandifer's reelection campaign, and help find a friend in the industry who will do the same.

Sandifer For the House

Help us help you secure financing for your next project

For the last several months your HBA has been working on a potential solution to the problem some builders are having securing financing for their construction projects.  The solution lies in a partnership between Wall Street investors, your Home Builders Association, and the South Carolina Housing, Finance, and Development Authority.

To gather the information necessary to put this new program together, we need your help by completing a survey.  Please answer the questions as they pertain to the specific financing of a typical home you have completed and sold within the past 18 months. Completed surveys should be returned to Mark Nix, HBA of South Carolina, 1419 Pendleton Street, Columbia, SC 29201.

Please click her to download the survey.

Traditionally, commercial banks and savings institutions have provided most of the credit for residential AD&C activities. However, even in the recovery from the recession a more restrictive regulatory environment is limiting the capacity and willingness of these lenders to resume that dominant role. Private debt and equity funds are expressing interest in filling the construction lending gap.

In an effort to provide the investors with a better understanding of construction financing needs, your HBA is conducting the survey to obtain examples of construction loans that can illustrate a typical deal structure for small to mid-sized home builders.

This project is being coordinated by the National Association of Home Builders.  Columbia HBA member Ken Ormand, a member of the state housing authority board, also is assisting with this project. 

Tuesday, November 12, 2013

South Carolina ranked 7th in nation for business climate

Site Selection magazine ranked South Carolina 7th in the nation for best business climate.  Click here to read the complete report at GSA Business.