FHBAction News (March 10, 2014)
President's Message
By Ron Lieberman
Next week, a number of FHBA members will be meeting with their Congressional
representatives as part of the National Association of Home Builders (NAHB) “Bringing Housing Home”
campaign. NAHB has done an excellent job of providing talking points on the major issues we face on the
federal level, including home finance reform a recently-filed tax reform bill that threatens the continuance
of the mortgage interest deduction. The meetings will also afford us the opportunity to thank U.S. House
members who last week passed the Homeowner Flood Insurance Affordability Act (H.R. 3370). This bill,
which now goes back to the Senate for their approval, will benefit home buyers and home owners and
provide a boost to home building and remodeling, while bringing certainty and financial stability to the
National Flood Insurance Program (NFIP). H.R. 3370 will help address some of the costly and unintended
consequences of the Biggert-Waters Flood Insurance Reform Act, including huge premium spikes and
impacts on the sale, construction and remodeling of homes across the nation. Among its provisions, the
bill provides a more affordable rate structure for policyholders and, of great importance to our remodeler
members, reinstates the "substantial improvement threshold" that triggers a higher flood insurance rate to
the historic 50 percent level of a structure's fair market value, which preserves significant remodeling
activity. Rep. Dennis Ross (R-Florida) was among the Congressional leaders who played key roles in the
passage of the legislation. I look forward to hearing positive reports of productive meetings around the
state as we indeed “bring housing home” in the minds of our national political leaders.
Ron Lieberman is a third-generation home builder and developer. He is a two-time President of the Citrus
County BA and a former chairman of the Citrus County Affordable Housing Authority and the Advisory
Committee to the Tampa Bay Regional Transportation Authority.
FHBA Leg Con Begins on April 7
The Florida Home Builders Association (FHBA) will hold its Spring Legislative Conference and
Board of Directors meeting on April 7-8, 2014 in Tallahassee. According to FHBA President Ron
Lieberman, the event is an excellent opportunity for members to learn the latest details on proposed
construction-related legislation and to meet with their lawmakers. “Our members hold the key to
achieving our legislative priorities,” said Lieberman. “I urge everyone to be in Tallahassee to make their
voices heard.” For a list of FHBA’s 2014 Legislative Priorities, go to fhba.com under Newsroom. To
view the conference schedule and register for the event – there is no registration fee – click on the Spring
Legislative Conference under Meetings & Events at fhba.com. The host hotel is the DoubleTree
Downtown Tallahassee. For reservations, call(800) 222-8733.
FHB Insurance Serves Entire Industry
The insurance and risk management arm of the Florida Home Builders
Association, FHB Insurance serves more than just home builders. They are Florida’s
most comprehensive provider of construction insurance solutions, working with multiple insurance
companies to offer the right combination of coverage and price to residential and commercial general and
trade contractors. In 2013, FHB Insurance wrote over 4,000 policies for 3,500 construction
businesses. Since 2007, FHB Insurance has written nearly 53,000 policies and bound nearly $300
million in premiums. FHB Insurance underwriters have decades of experience with construction risks. In
fact, for many agents, FHB Insurance staff is the “go-to” people to contact if they have construction
insurance questions. FHB Insurance contributed more than $10 million to FHBA to advocate for
Florida’s construction industry. Give FHB Insurance the chance to earn your business. Ask your
agent to contact FHB Insurance for a quote or contact your local builders association for a list of FHB
Insurance agents.
McGrath Wins ‘Best of Houzz’ Award
Jonathan McGrath Construction of Orlandohas
won the “Best of Houzz” Award for customer satisfaction as selected by more than 16 million monthly
users of Houzz, the leading platform for home remodeling and design. The honor was based on a variety
of factors, including the number and quality of client reviews a professional received in 2013. For 30
years, Jonathan McGrath Construction has been creating masterpieces for their clients throughout
Central Florida. A full-service design remodeling company specializing in whole home renovations and
home additions, the company partners with their clients to transform their homes and living spaces into
works of art by creating and building unique designs for each remodeling project, all within a
predetermined budget and timeframe.
New Southern Home Highlights SEBC
When home builders and housing professionals from around the south
converge on Orlando this summer for the 36th annual Southeast Building Conference (SEBC), they’ll be
treated to a spectacular showcase homes complete with the latest and best the industry has to offer. The
2014 New Southern Home will be on display during the July 24-26 SEBC held at the Orange County
Convention Center. Themed “The Oasis,” the home is located in an area of quaint Old Winter Park
known as the “Vias” and features a native Florida landscape withover 6,500 square feet of interior,
exterior and outdoor spaces. An impressive team of nationally-recognized professionals is producing
the home, including builder Bill Cook of RX Custom Home Builders, general contractor Alex
Hannigan, architects Donald F. Evans and James LaPiana of The Evans Group, interior
designer Kate Clark, landscape architect Scott Redmon of Redmond Design Group, PA, and energy
consultant Drew Smith of Two-Trails, Inc. Features include an unforgettable entry with a “glass canopy”
flanked by sculptures on both sides and a custom oversized front door lead into the Oasis; guest Cabana
for visitors or family; grand room which is the formal entertainment center of the home; and the “hangout”
with a full bar, a space perfect for movie nights, parties, and watching sports.
FHBA Seeks Building Codes Director
With the impending retirement of longtime Technical Services
Director Jack Glenn, the Florida Home Builders Association has renamed the positionDirector of
Building Codes and is seeking Glenn’s successor. The individual will serve as a full-time expert and
advocate for the construction industry on issues relating to the Florida Building Code. The successful
candidate will have extensive knowledge of the code as well as excellent instructional and
communication skills. Applicants must be willing to travel and while the base of operations is flexible, the
preferred location is the FHBA’s headquarters in Tallahassee. A competitive salary and benefits are being
offered. Resumes should be sent to Doug Buck, FHBA’s Director of Governmental Affairs, 201 East
Investor Sales Decline in Lee, Collier
In January 2014, Cape Coral-Fort Myers in Lee County saw one of the
nation’s biggest drops in its share of home sales made to institutional investors. A report by Irvine,
CA-based RealtyTrac Inc. shows a 70 percent decline in activity over the year, with the percentage of
those buyers falling to 9.2 percent, down from 30.4 percent a year ago and 23.2 percent in December.
Institutional investors are organizations such as banks, insurance companies or hedge funds that pool
large sums of money to invest, such as in property. RealtyTrac defines institutional investors as buyers
who purchase at least 10 properties in a calendar year. Other statistical reports showed that NaplesMarco Island (Collier County) followed the followed the national trend, with its percentage of sales made
to institutional investors dropping to 2.8 percent in January. That was down from 24 percent in December
and 9 percent a year ago. Nationally, sales to institutional investors accounted for 5.2 percent of all
U.S. residential sales in January, down from 8.2 percent a year ago and 7.9 percent in December.
January’s share represented the lowest monthly level since March 2012, a 22-month low.
Nationally, New Home Sales Hit High
Purchases of new U.S. homes unexpectedly climbed in January 2014
to the highest level in more than five years, showing underlying strength in the industry even in the
midst of unusually harsh weather, according to a report in Bloomberg News. Sales increased 9.6
percent to a 468,000 annualized pace, exceeding the highest estimate of economists surveyed by
Bloomberg and the most since July 2008, figures from the Commerce Department showed. Nonetheless,
limited housing supply, rising borrowing costs and still-tight credit conditions are preventing the
industry from making even bigger strides. “Overall, despite the weather, consumer confidence is holding
in OK,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, NY. “We’ll start
to see home sales trend up again.” The median sales price rose 3.4 percent last month from January
2013 to $260,100, the report showed. Sales climbed 10.4 percent in the South. The supply of homes
declined to 4.7 months, the fewest since June, from 5.2 in December, 2013.
Perspectives from CEO Paul Thompson
Thirty years ago, not long after the creation of
the Southeast Building Conference, I was proud to have played a small role in the establishment of the
SEBC’s Aurora Awards, which to this day stand as the highly recognized symbol of design and
construction excellence in the South. The real credit for the idea goes to the iconic interior designer Betsy
Godfrey (whose award-winning career landed her in the Florida Housing Hall of Fame) and Betty Harley,
a Tallahassee builder who once served as the Mayor of Tallahassee. Betsy saw the need to honor design
professionals and builders who valued design for the important role it plays in our industry, and Betty
wanted to use the awards to salute and promote energy-efficient construction. Their concepts blended
beautifully and withstood the test of time as the award has recognized hundreds of talented individuals
and maintained a high profile and rich recognition for those who would design, develop and build with
energy savings and environmental sensitivity in mind. The “aura” that surrounds the awards was
established early-on when one of FHBA’s first associate-members leaders, Phyllis Finney-Loconto and
her husband Frank, produced a spectacular multi-image, visual tribute to the winners. The awards
attracted strong volunteer leadership, including such notable Aurora Awards Committee Chairs as Kay
Green, Rita Williams, Marc Thee and Patti Guthrie (Marc-Michaels Interior Design), Renee Stein Charlan,
Stephanie Henley (Beasley & Henley Interior Design), and Barry Rutenberg, the recent NAHB Chairman
of the Board. Over the years, I’ve enjoyed the opportunity to both watch and emcee the Aurora Awards
and to me, whether in the audience or on the stage, there is no greater joy than seeing creative, hardworking individuals receive the recognition they so richly deserve. I’ll cherish the memories of past Aurora
Awards – my longtime friend Jim Cronley of Pensacola won the first Golden Aurora Award (Best in Show)
– and look forward to applauding future