THE PLUMB BOB DECEMBER 2008 HOME BUILDERS ASSOCIATION OF CUMBERLAND COUNTY P.O. BOX 507 CROSSVILLE, TN 38557 931.484.9097 homebuilders@volfirst.net www.cumberlandcountyhomebuilders.com Chartered 1-16-1999 CALENDAR December BOD: Tuesday December 2 in the HBACC office BOARD OF DIRECTORS OFFICERS President: Gay Stewart Primeway Management, Inc. 931-456-9478 Vice-President: Lisa de Araujo Jorge HBACC ELECTION RESULTS J & S Construction 931-261-7011 Secretary/Treasurer: Gordon Wheeler President Sarah Derrick, Creative Compassion Christmas Lumber 865-719-8106 Vice-President Tracy Melton, Melton Enterprises BOARD MEMBERS Secretary James Wattenbarger, J & M Insulation Harry McCulley McCulley Siding & Windows 931-484-6601 Bob Marengo Custom Fireplaces & More 931-526-8181 EO: Andrea Yager 931-707-1034 Thank you for renewing Acme Block & Brick McCulley Siding & Windows Phil Perry Construction KMS Construction Treasurer Gordon Wheeler, Christmas Lumber Board Members K. Gay Reeves-Stewart Primeway Management, Inc Harry McCulley McCulley Siding & Windows Frank Whitehead Counter Tops, Inc. Welcome Mr. Rooter—Tracy Melton 1 From the President’s Pen…. I attended the HBAT fall board meeting in Knoxville October 30 thru November 2. Rick Judson, NAHB Public Affairs Chair and Housing Finance Task Force member, held a round table discussion. Myself and about 30 builders and associates from across Tennessee shared ideas for surviving during the current construction downtrend. Some suggestions were: lease or rent a house, or consider moving into it if your current house would be more saleable due to location or lower in price; meet EVERY potential customer when showings occur; stage the house complete with magazines, towels and highlight the best features; landscaping upgrades; closet shelving upgrades; including a washer and dryer or some other items not normally included. Be realistic about pricing. If the same house sold last year for $100,000, consider reducing the price by 5-6%. Offer owner financing with a balloon payment in 3-5 years, renegotiating your construction loan through modification agreements, to delay interest payments, make yearly or quarterly payments, pay lump sum payments when a closing occurs. Mr. Judson also reported on continuing efforts by NAHB to encourage "The Feds" to enact legislation to stimulate construction lending and the reduction of home mortgage rates. I spent several hours talking with Sandy Dunn, Chairman of the Board of NAHB. She is a contractor from West Virginia. She is working diligently to provide guidance and pertinent information to our members Nationwide. Our Association's annual election was held at the November meeting. The following persons were elected: Sarah Derrick - President, Tracy Melton - Vice President, James Wattenbarger - Secretary, Gordon Wheeler - Treasurer, Harry McCulley - Board member, Gay Stewart - Board Member, Frank Whitehead - Board member. Their bios are included in this newsletter. I want to thank all of you for your support during my two years as President of the Association. I have enjoyed the challenges of the office, getting to know you better and acquiring valuable experience and learning more about the industry I have chosen as my profession. I would like to thank Andrea Yager, Executive Director, Lisa de Araujo Jorge, Vice President, Gordon Wheeler, Board Member and acting Treasurer, Gina Knight past Treasurer, Harry McCulley, Board member and Bob Marengo, past Secretary and Board member for your continued support of the Association and your help during my tenure. Thank you. I am also looking for bail money!! I was volunteered to participate in the Muscular Dystrophy Association's "Lock Up. My bail was set at $1275.00. I will be arrested and confined at Ryan's Steakhouse on December 10, 2008 starting at 10:00 a.m. until 11:00 I will be calling everyone I know to bring bail money. If you can spare $5.00 or $50.00 or any amount, please come by Ryan's to help bail me out! All donations are tax deductible and are used for clinics, assistance with wheelchair purchases/repairs, braces and area support groups. You can go on-line @ klittlemom@joinmda.org to donate and track my status. You can make a difference. Thank you. Gay Stewart, President HBACC klittlemom@frontiernet.net 931-456-9478 2 Sarah Derrick I have a B.S. Degree in Organizational Management with over five years experience in the affordable housing industry and over 15 years of experience in non-profit management. I am certified as a Housing Counselor and Homebuyer Educator. I have been the Associate Director of Creative Compassion, Inc. for three years. In the past five years I have received several certifications such as: Public Housing Manager, Public Housing Eligibility and Rent Calculations, Grant Writing, and most recently completed the course for post-purchase counseling certification. Tracy Melton of Melton Enterprises and Mr. Rooter, was born in Crossville, TN. He graduated from Clark Range High School in 1988. He and his wife Candis married in 1992 and have two children, Levi, age 13 and Matraca age 11. Tracy earned his machinist certification from Tennessee Technology in 1991. He started Melton Enterprises, a general contracting firm in 2002. They perform all phases of residential construction both custom and speculative. He has just acquired his plumbing license and started Mr. Rooter, a plumbing contracting business. He serves as the Treasurer of the local chapter of the Plateau Long-beards of the National Wild Turkey Federation and attends Bethlehem Baptist Church. Gordon Wheeler I am a Native of Central Florida. I lived most of my life in rural Southwest Michigan. I raised my family there and moved to Cumberland County in 1998. Family: I am proud to say that I have three wonderful children, seven grandkids, & two great grand kids. Two of my children live in Michigan, and one in Texas. History: I began in the building trades in the early 60’s. In 1963, I took employment working for a local lumber company in Michigan. Soon I began learning the building trades, via; remodeling old farm homesteads. Soon I became interested in custom millwork, which I did for over twenty years. That experience soon expanded to future employment. I became acquainted with Cumberland County in 1985, doing mission work with the senior youth group of my former church in Michigan. I began re-hab housing projects through the Good Samaritans of Crossville, projects for Creative Compassions, and CORA. In 1998 I design built my home in Pleasant Hill. Employment: Currently I am employed by Christmas Lumber Co. Harriman TN. My position is Outside Sales. Area of Coverage is all of Cumberland County, and skirting White, Putnam, Fentress, and Rhea Counties. 3 James Wattenbarger of J & M Construction, Born in Crossville, Tennessee in 1967. James met his wife Kim on his 16th birthday during a hayride. They married in June of 1989. They have 2 children, Nathan, age 11 and Kennetha, age 15. James started J & M in 1987 doing guttering, siding and insulation. He has been a volunteer firefighter for over 20 years and served as a Lieutenant for the past 10 years. He is a church elder at Grace Community Center, the PTO president for 2 years at North Cumberland Elementary School. James is also the Secretary for the Cumberland County Rescue Squad, the Vice President of the local Plateau Long-beards of the National Wild Turkey Federation and has been a member of our Association at least since 1987. K. Gay Reeves-Stewart Past President and Board Member: K. Gay was born in Detroit Michigan and raised in Knoxville, TN. She began her construction career in 1974 working with Crafter House Construction as office manager/material coordinator. Gay worked on home site layout, material ordering, sub-contractor scheduling and interior finish selections. She also obtained her Affiliate Broker Real Estate License in 1976. From 1978 to 1988 worked with several real estate firms in sales, as a relocation director, rental property management and personnel supervision of 12 branch offices. In 1988 she married Bob Stewart, and worked with Starr Designs, an interior design firm, then with an architectural firm to set up their interior design department. In 1990 Gay began working with Bob to build their residential construction firm, Primeway Management, Inc. Their firm specialized in contemporary spec homes and upper bracket multifamily projects. They owned 112 acres here in Crossville from 1989 and decided to build their own home in 2003. They have four children between them, Stacy, Beth, Becky and Jason and two grandsons, Zak, age seven and Hunter age 8 months. Harry McCulley of McCulley Siding and Windows, which he started in 1984 in Rockwood,TN. As selling and installing vinyl products boomed in the upper cumberlands, Harry moved the business to Crossville, TN. where he has continued to grow the company, with the addition of A & M Vinyl Supply. Harry has coordinated our Associations Home Show for several years. He is active in his church and enjoys cooking and singing. He is married to Arlene and they live in Basses Creek Development. Frank Whitehead Frank was born in Cookeville, TN and was raised in Plant City, Florida. He married in 1967 and joined the Army in 1967. He served in Vietnam from 1968 to 1969. He began working for GTE in 1969, which later became Frontier Communications. He retired from Frontier Communications in 2002. Frank joined Counter Tops Inc. in 2006. He has two daughters and one grand-daughter. Frank enjoys wood carving and traveling. 4 Energy efficiency drives home building By Bob Keefe Cox Washington Bureau Sunday, November 09, 2008 First came the push for fuel-efficient cars. Are fuel-efficient houses next? As builders look for ways to move homes in a lousy market, they’re increasingly taking their cue from automakers and turning toward energy efficiency as a selling tool. In Atlanta, builders are pushing what the head of the Greater Atlanta Home Builders Association calls “high-performance homes” that sip water and electricity like a Toyota Prius might sip gas. Just like with car buyers, home buyers “don’t want to feel like they’re getting a house that’s like yesterday’s SUV,” said Rick Andreen, president of Shea Homes’ Trilogy division, which sells homes in Deland, Fla., as well as Arizona, California and Washington. “They want to feel like they’re getting a leading-edge, efficient product.” Some builders are teaming up with energy companies for marketing help and added credibility. In Florida, for instance, Florida Power & Light Co.’s “BuildSmart” program certifies builders whose homes are constructed with a higher standard of energy efficiency. “BuildSmart” homes that come with features such as sealed air ducts, high-efficiency air conditioners and upgraded insulation can save up to 30 percent on monthly energy bills, FPL estimates. It only makes sense that in this time of high fuel prices home builders and home buyers are looking harder at what it costs to keep the lights and furnace on. According to the U.S. Energy Department, the average U.S. family spends about $1,500 a year on energy costs. The department’s Energy Information Administration predicts home heating costs will rise by 15 percent nationally this winter. Parts of the South that rely on natural gas could see heating bills rise by 26 percent, it said. In a survey released in October by building supplies manufacturer Johns Manville, about 92 percent of respondents said they were interested in increasing their homes’ efficiency to meet higher energy costs. More than two-thirds said they were more interested in home energy efficiency than they were a year earlier. In the Atlanta area, where rising energy prices and a drought have heightened homeowners’ awareness, “high-performance homes” are what’s selling, said David Ellis, executive vice president of the Greater Atlanta Homebuilders Association. “Consumers are really starting to understand and consider high-performance homes —- ones that save water and energy,” Ellis said. “It’s come to the forefront of the consumer’s perspective, and the builder’s perspective, too.” In a survey of 400 builders, developers and remodelers released in May by researcher McGraw-Hill Construction, 40 percent said they thought it was easier to market “green” and energy-efficient homes in the current poor housing market. About 36 percent of respondents said they expected to be heavily involved in green building in 2009, up from about 18 percent in 2007. “When you’re talking to a family about putting them in a healthier home with lower utility bills, that’s a pretty easy sell,” said Emily Zimmerman, manager of the green building program at the National Association of Home Builders. 5 More than 1,300 builders have gone through a NAHB program launched in February designed to teach environmentally sensitive and energy efficient building techniques. New types of supplies —- everything from insulation and sheathing to government-sanctioned “Energy Star” appliances and solar panels that are much less obtrusive —- are making building energy-efficient homes a lot easier. How much more efficient can homes get? According to the Energy Department and McGrawHill, a household can reduce energy expenditures by 50 percent just by using equipment such as more efficient heaters, air conditioners, water heaters, appliances and electronics, and by using compact fluorescent lighting. Chemical and building supplies company BASF recently opened a concept home in New Jersey that it claims is 80 percent more efficient than similar-size homes. BASF uses solar heating and hot-water systems, high-efficiency heating and air conditioning systems, new types of sealants and windows, and a design that takes advantage of natural sunlight and weather patterns to reach its goals. Shea Homes’ Andreen said he thinks someday builders might post the energy usage of their homes on the window or front door, just like carmakers post the gas mileage of their vehicles and appliance makers post the energy usage of their dishwashers or clothes dryers. “Then we can let the industry work it out,” he said. “The guys who build the [housing equivalent of a] 45 mile-per-gallon car will get all the business, and then everybody else will follow.” WHERE THE SAVINGS ARE Where builders are putting energy efficiency into their houses > Solar: Adding solar panels can cut a typical home’s power bill by 60 percent or more. > Heating and cooling: Furnaces and air conditioners are the single-biggest energy users in a home. New energy-efficient models, coupled with programmable thermostats and tightly sealed ductwork, can dramatically reduce costs. > Insulation and sealants: Extra insulation blown into walls and above ceilings are a big advantage. So are new types of caulks, windows and whole-house wraps that keep cold air out in the winter and cooled air in during the summer. > Water: Tankless instant water heaters cut down on heating costs. Water-saving plumbing fixtures reduce water usage. > Building materials: New types of insulated concrete forms, wall panels and flooring help seal a house. > Appliances and lighting: Government-approved “Energy Star” appliances, reduced lighting and compact fluorescent and LED light bulbs go a long way toward cutting electricity costs. Source: U.S. Energy Department, McGraw-Hill Construction, builders WHERE YOUR ENERGY DOLLAR GOES Homes consume about one-fifth of all energy used in the United States each year, and the typical U.S. family spends about $1,500 a year on utility bills. Here’s where it goes: > Heating and cooling: 42 percent > Lighting and appliances: 36 percent > Water heating: 14 percent > Refrigeration: 9 percent Note: Does not add up to 100 percent due to rounding. Source: Department of Energy 6