Thursday, September 7, 2017

Preparing for Hurricane Irma





Your Home Builders Association is closely monitoring the path of the approaching storm and the potential effects on our state and our members.


In an effort to provide you members with information on securing job sites throughout the state and protecting your families, friends, pets and personal property prior to any potential weather threat due to Hurricane Irma, the HBA of South Carolina has prepared the checklist and other resources below.

Your HBA is here to provide any assistance that we can in order to keep you safe.

CHECKLIST

1. Check with local building departments
Many local building inspection departments office hours/inspections schedules may have changed significantly relative to Hurricane Irma. Check to make sure you know their hours of operation and any amended inspections schedule.

2. Secure job site materials
Once it looks like a storm will be passing close enough to a project, it is time for job site personnel to perform critical tasks like securing materials, trash, tools or other debris that can take flight in heavy winds, including items like dumpsters and portable bathrooms. Please reduce your liability by securing any construction equipment and materials that can be thrown around in a heavy windstorm.
  • Prepare to shut down all operations at least 36 hours prior to the storm's intended landfall
  • Notify your subcontractors that you are calling a temporary halt to all work
  • Store all construction equipment and supplies inside buildings if possible
  • Tie down or band together all equipment, tools, supplies, and materials that cannot be secured indoors
  • Secure construction debris
  • Secure all signage safely indoors if possible or tie it down if it cannot be moved easily
  • Take a few moments to double check that all heavy-duty equipment and scaffolding supplies are properly secured to withstand the conditions a hurricane or strong storm will bring
  • Turn off the access points for all utilities.
  • Make sure that the documentation for your valuables is securely locked awayConsider taking pictures on your phone for additional proof that you have certain possessions
3. Plan for water removal
Planning for water removal also is key. Consider placing pumps in excavations or basements in advance of the storm so that pumping can begin as soon as it is safe to do so. Getting rid of excess water is not only important for project cleanup but also to protect adjacent properties.

4. Ensure the security of the structure
Now that the items on the periphery of the project are secure, it is time to safeguard the structure itself. If the work is a renovation, or if work has progressed on a new building to a point where water can significantly damage the interior, crews should board up any openings and accessible windows and place sandbags around the perimeter.

5. Post Storm Assessment
When the storm has passed and local authorities have given the go-ahead, it is time to return to the project site to assess damage and start to clean up. It is important to use caution when navigating every area of the project site, especially those with standing water, because sharp or jagged debris could pose a danger. It is also essential to use the same care when entering a building after a storm because, depending on the extent of the damage, some structural elements could be compromised.

Be sure to have your insurance agents contact information on hand.
Please do not hesitate to contact us if we can be of any help. Our prayers go out to each one of you and your families. Be safe!

Mark Nix, Executive Director, HBASC - 803-917-4846 (m) - mnix@hbaofsc.com
Marc Ellis - HBASC Disaster Preparedness Committe Chairman

You also may contact Michael Dey, HBA of Greenville CEO - mdey@hbaofgreenville.com - 803-917-1701 (m)

Friday, September 1, 2017

Hurricanes Harvey and Irma may pose challenges for Home Builders in the Upstate

By: Michael Dey, CEO, Home Builders Association of Greenville

Hurricane Harvey directed the bulk of its punch on Texas, and Irma is headed our way.  However, Approved Professional Home Builders in the Upstate may not be free of the impacts of these hurricanes.  Hurricane Katrina should be a guide to the potential impacts that Harvey may have in store for the Upstate in the coming weeks.

Fuel prices and availability
The first impact is already being felt, and may continue for days or weeks: gasoline availability and price.  Half of the nation's oil refineries are located in Texas and Louisiana, and they are all closed.  As a result of the lack of flow, the Colonial Pipeline, the means by which gasoline is shipped to the Southeast from the Gulf Coast, has been closed also. This is the source of half of our state's fuel.  Gasoline prices have already jumped, and shortages may follow.

Building materials shortages
Following Katrina, building materials, particularly lumber and plywood, were in short supply for several months as these materials were diverted to devastated areas following Katrina.  Approved Professional Home Builders can expect the same with Harvey and Irma.  Texas and Florida get some of their lumber from the same suppliers as South Carolina.  These suppliers are in Louisiana, Alabama, and Georgia.

If you are not using an escalation clause in your contract with your customers, you should consider using one.  Your attorney can help you add one to your contract.  Your Home Builders Association can provide you with a sample.  Simply email eo@HBAofGreenville.com.

Labor shortages
Another issue Approved Professional Home Builders experienced following Katrina was labor shortages as subcontractors traveled to hurricane-effected areas to help and in search of bigger pay days.  No matter the reason, some of your labor may head to Texas and Florida to work on clean up and repair efforts there.

In a meeting yesterday with Federal Reserve officials, labor availability was front and center as the number one concern of business people in all industries.  Labor availability is reaching crisis levels, and Harvey could be a catastrophe that pushes the labor problem for construction in the Upstate to a crisis situation.

Approved Professional Home Builders should plan for these contingencies, and prepare for the customers for possible delays in their projects.

IBS early bird discount extended to September 15

Those who snooze, typically lose. But if you happened to “hit the snooze button” on August registration — and the savings that came with it — for the 2018 NAHB International Builders’ Show® (IBS), do not despair.

Organizers have decided to extend those incredible August deals to all who register by September 15. That means there is still time for HBA members to obtain a free expo pass (non-members save 50%) and save $100 on a full registration. Additionally, spouse registration is free before the September 15 deadline.

Savings like these can certainly help make the typical burdens of traveling seem much less onerous. Plus, registrants can rest assured that IBS 2018 will be well worth the effort.

Don’t miss your opportunity to save before the September 15 deadline. Register today at BuildersShow.com.

Federal judge overturns overtime rule

Yesterday a Federal judge in Texas struck down the U.S. Department of Labor's overtime rule that was set to increase the Federal minimum salary to be exempt from overtime from $23,660 to $47,476.

The Obama-era overtime rule, which was set to take effect December1, 2016, was stayed from enforcement by the same judge shortly before it was set to take effect.

The judge, in his ruling yesterday, said that the Department of Labor improperly considered salary in drafting its rule instead of considering job descriptions.  The judge also ruled, "the salary level was set so high that it could sweep in some management workers who are supposed to be exempt from overtime protections."  The National Association of Home Builders estimated that nearly 100,000 construction supervisors were affected by the rule.

Read more about the ruling at Fortune and The Hill.

The Trump Administration recently announced that it has directed the Department of Labor to review the overtime rule and the thresholds for exemption from overtime.

S.C. Attorney General Alan Wilson was one of 21 states Attorneys Generals who challenged the Obama Administration's overtime rule.  The National Association of Home Builders weighed in with briefs making the home building industry's case on the rule.

Tuesday, August 29, 2017

FHFA: refinance volume is slowing

The Federal Housing Finance Agency (FHFA) reported this week that more than 356,709 refinances were completed in the second quarter of 2017, compared with 510,074 in the first quarter. FHFA’s second quarter Refinance Report also shows that more than 9,700 loans were refinanced through the Home Affordable Refinance Program, bringing the total number of HARP refinances to 3,470,804 since inception of the program in 2009.

According to new data released today, 143,051 borrowers could still benefit financially from a HARP refinance as of March 31, 2017. These borrowers meet the basic HARP eligibility requirements, have a remaining balance of $50,000 or more on their mortgage, have a remaining term on their loan of greater than 10 years, and their mortgage interest rate is at least 1.5 percent higher than current market rates. These borrowers could save, on average, $2,400 per year by refinancing their mortgage through HARP.

Click here to view a U.S. map showing the number of HARP-eligible borrowers by state, Metropolitan Statistical Area, county and zip code. Of interest: only 60 loans are eligible in the Greater Greenville area, while nearly 1,000 loans are eligible in the Columbia area.

Also in the Refinance Report:
  • Through the second quarter of 2017, 25 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages.
  • Nine states and one U.S. territory accounted for more than 60 percent of borrowers who remain eligible for HARP and have a financial incentive to refinance: Illinois, Florida, Michigan, Ohio, Puerto Rico, New Jersey, Georgia, Pennsylvania, Maryland and New York.
  • Borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers eligible for HARP who did not refinance through the program.

HBA Hurrican Harvey Relieve Efforts

Texans are fighting floodwaters rising to historic levels as Hurricane Harvey pounds the Lone Star State.

While the reports of damage and devastation in Houston, Victoria, Rockport, and other towns and cities continue to pour in, weather forecasts indicate that the disaster area will likely grow as the storm moves inland and swings toward Louisiana.

The National Association of Home Builders (NAHB) will be working closely with state and local home builder associations in the region to help them meet the needs of members who have been affected by the storm. NAHB also will provide resources to support HBA members as they help families rebuild.

There also are many ways you can help right now.  The Department of Homeland Security encourages donations to be funneled through the National Voluntary Organizations Involved in Disaster.

Donations also are being directed to Hurricane Harvey relief efforts by the Red Cross and Salvation Army via their websites and by texting UWFLOOD to 41444 to donate to the United Way Flood Relief Fund.

These Houston-area food banks are seeking donations to help feed families, while the Texas Diaper Bank is accepting donations to purchase diapers, formula and other needs for children, seniors and the disabled.

Programs such as Star of Hope Mission, Homeless Houston, and Samaritan's Purse are also funneling contributions to disaster relief, while the SPCA and Austin Pets Alive are helping to house evacuated pets.

Other groups targeting the areas impacted by the hurricane include:
The Texas Association of Builders also has advised its members of the following resources for more information:
We know HBA members are anxious to help as much as they can. NAHB will be adding information to its Disaster Resources Page from time-to-time. 

FHFA: Mortgage rates decline in July

Nationally, interest rates on conventional purchase-money mortgages decreased from June to July, according to several indices of new mortgage contracts.

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 3.99 percent for loans closed in late July, down 1 basis point from 4.00 percent in June.

The average interest rate on all mortgage loans was 3.98 percent, down 2 basis points from 4.00 in June.

The average interest rate on conventional, 30-year, fixed-rate mortgages of $424,100 or less was 4.14 percent, down 1 basis point from 4.15 in June.

The effective interest rate on all mortgage loans was 4.08 percent in July, down 3 basis points from 4.11 in June. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.

The average loan amount for all loans was $317,000 in July, down $1,900 from $318,900 in June.