Building the Dream Renovations, Additions and Repairs … Builder
Transcription
Building the Dream Renovations, Additions and Repairs … Builder
Volume 1 • Issue 2 • 2008 Celebration of Excellence Four Inducted Into Hall of Fame Building the Dream 2008 HBA of S.C. Convention Renovations, Additions and Repairs … Remodeling in South Carolina Builder Profile Square One Plan Service Up on the Roof... Publi Kevin N Mana Marie G Grap Michele Adve Brenda Adve Repre Jeff Pin (800) Publi Since 1974, Duradek has solved countless ‘walkable waterproong’ demands. Duradek’s PVC membrane system is installed by factory trained technicians quickly and easily and is usable immediately. Waterproof Outdoor Vinyl traine Duradek full your waterproong needs on sun decks, roof Let D Flooring Since 1974 decks decks, balconies, walkways and more. To nish your outdoor living space, add Durarail powder coated aluminum railings for safety and style. Available in both picket and view through glass styles and nearly limitless colors, Durarail can to suit nearly any job. tail Powder Coated Aluminum be tailored Railing Systems Duradek MidAtlantic 800-403-3286 Ɣ www.duradekmidatlantic.com SCBJ 08v1n2.indd 2 4/2/08 10:59:01 AM 2929 D (810) South C publish mailed Carolin career Any re this pu must b written or the South C the cla Editoria Remodeling in South Carolina. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 s t n Feature Articles e Remodeling as a segment of the homebuilding industry is doing very well in South Carolina. n Donors, members and South Carolina legislators were invited to celebrate at the official opening of the newly renovated HBA of S.C. offices. A plaque recognizing all of the donors was also unveiled. t Renovation Donors Honored . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Mark Bostic of Square One Plan Service in Columbia credits his company’s success to always giving 100 percent doing a job he loves. Managing Editor Marie Grogitsky The Dangers of Smart Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Graphic Designer Michele L. Peterson A look at the two speeds that the U.S. housing market is developing — the highly regulated market with smart growth policies and the affordable market. 2929 Davison Rd., Flint, MI 48506 (810) 239-5763 South Carolina Builder Journal is published six times annually and is mailed to all active HBA of South Carolina members plus every career home builder statewide. Any reproduction or duplication of this publication or any part thereof must be done with the publisher's written permission. The publisher or the Home Builders Association of South Carolina is not responsible for the claims made by the advertisers. Editorial comment is always welcome. Departments President’s Letter South Carolina Still One of the Strongest Markets in the Country.. . . . . . . 5 Executive Director’s Letter Path to Good Development Allows the Market to Find Itself. . . . 6 Government Affairs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Regulatory Affairs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 South Carolina Builders PAC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2008 Calendar of Events and Education Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Welcome New Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 c e l Gale B. Crawford, Howard L. Cox, D. Aubrey Richardson and Richard N. Sendler were recently inducted in the Home Builders Association of South Carolina’s Hall of Fame during the Celebration of Excellence. b Published by: Four New Members Inducted into the Hall of Fame. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 a Advertising Sales Representative Jeff Pinwar (800) 935-1592 ext. 118 t Advertising Sales Manager Brenda Poe f Builder Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Publisher Kevin Naughton o Make sure to register for this year’s convention planned for July 30 through Aug. 3 at the Marriott Grande Dunes Resort in Myrtle Beach. o 2008 HBA of S.C. Convention. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 www.hbaofsc.com • South Carolina Builder Journal • 2008 SCBJ 08v1n2.indd 3 3 4/2/08 10:59:35 AM Certified Master Builders are building dreams...and great reputations. The Certified Master Builder program brings together the public and home builders who are dedicated to maintaining the highest level of professionalism, customer service and home owner satisfaction. The program was created to identify exemplary home builders who have a proven track record of integrity, stability and exceptional service to their buyers. Become a Master Builder today! Congratulations to the newest Certified Master Builder! HBA of Greenville Nathan Coponen For a complete list of Certified Master Builders or for more information about how to become one, visit www.MasterBuilderSC.com or call 803-771-7408. Don’t let Cost Overruns and Supply Shortages blow you over. Cardinal Homes’ modular solution offers fast, reliable delivery with the same high quality standards you hold yourself to every day. 4 South Carolina Builder Journal • 2008 • www.hbaofsc.com SCBJ 08v1n2.indd 4 4/3/08 1:36:48 PM r t e President’s Letter e t South Carolina: Still One of the Strongest Markets in the Country L William G. Smith Home affordability can be traced directly to the local and state HBA’s constant battle on new and increased regulatory fees. P r e s i d e n t ’ s President HBA of South Carolina Home Builders Association of South Carolina 1419 Pendleton Street, Columbia, SC 29201 803/771-7408 • Fax: 803/254-5762 President Bill Smith, Aiken Vice President Jim Gregorie, Greenville Treasurer Steven Mungo, Irmo Secretary Phillip Lawson, Moore I f you read the headlines, you would believe that the housing market in South Carolina is “gloomy,” to say the least. Sure, the market is down, but we’re down from a historical boom of the past several years. NAHB economists continue to point out that the southeast, including S.C., continues to be one of the strongest markets in the country. Historically, South Carolina never experiences the “highs” as other parts of the country, but we also do not experience the “lows.” Much of what is driving the national crisis in our industry has not affected S.C. as severely and a big reason for that is the Home Builders Association. While S.C. has not been immune from the sub-prime crisis, it has been insulated because, as a whole, home prices have been very affordable. Home affordability can be traced directly to the local and state HBA’s constant battle on new and increased regulatory fees. Those excessive tax and fee municipalities are now experiencing deficits due to the lack of growth and an artificial increase in housing prices. According to NAHB, recovery on the national level is expected to begin in the second quarter of 2008, followed by upturns in housing starts and residential fixed investments by the third and fourth quarter respectively. South Carolina should follow suit as we continue to see other positive indicators for our state. S.C. continues to experience a drop in unemployment; we outpace the nation in the number of starts per thousand population; our state continues to enjoy a stable net migration and a steady price appreciation. While we all worry about our business and futures, I wanted to share this story that a friend told me. I hope it puts all your worries in perspective: One day I did a little arithmetic. The average person lives about seventy-five years. I know, some live more and some live less, but on average, folks live about seventy-five years. Now then, I multiplied 75 times 52 and I came up with 3,900, which is the number of Saturdays that the average person has in their entire lifetime. It took me until I was 55 years old to think about all this in any detail, and by that time I had lived through more than 2,800 Saturdays. I got to thinking that if I lived to be 75, I only had about a thousand of them left to enjoy. So I went to a toy store and bought every single marble they had. I ended up having to visit three toy stores to round up 1,000 marbles. I took them home and put them inside a large, clear plastic container right here in my garage next to my equipment. Every Saturday since then, I have taken one marble out and thrown it away. I found that by watching the marbles diminish, I focused more on the really important things in life. I figure that if I make it until my last marbles then I have been given a little extra time. And the one thing we can all use is a little more time. SCBJ Immediate Past President Keith Smith, Greer Associates Vice President Andy Barber, Mt. Pleasant District #1 Vice President Wesley Murdaugh, Hilton Head EO Council Chairman Rose Anne O’Reilly, Myrtle Beach District #2 Vice President Andy White, Columbia State Representative Marc Ellis, Hilton Head District #3 Vice President Johnny Uldrick, Donalds Executive Director Mark Nix District #4 Vice President Clyde Rector, Greenville Director of Government Affairs Julian Barton Director of Meetings & Membership Services Vee Daniel Director of Communications & Education Brandie Freeman Accountant Kim Halter District #5 Vice President Harry Dill, Myrtle Beach www.hbaofsc.com • South Carolina Builder Journal • 2008 SCBJ 08v1n2.indd 5 5 4/2/08 11:00:19 AM r E x e c u t i v e D i r e c t o Executive Director’s Letter Path to Good Development Path to Good Development Allows the Market to Find Itself R ecent editorials across the state have lamented the growth in South Carolina and the diminishment of our community due to the growth. I steadfastly disagree with their conclusions as I believe that we have gained much more in South Carolina due to our growth. A recent housing impact study, provided by the HBA of Greater Columbia, of Columbia’s fastest growing areas found that single family construction and multi-family construction pay for themselves and provide ongoing economic benefits faster than ongoing costs. The one year impact will include $677 million in local income; $56.4 million in taxes and other revenue for local governments and more than 16,500 jobs —just in Columbia. In short, every family in South Carolina has either directly or indirectly benefited from our state’s growth. The newspaper editorial boards pine for smart growth initiatives (moratoriums, public facilities, ordinances and impact fees) and a more regulated homebuilding industry. Many South Carolina counties and cities have already enacted such policies, but at what expense. The homebuilding industry is now one of the most regulated industries in our state, and the price of housing reflects it. The cost of regulation increases the cost of every house in South Carolina by 12-40 percent. Adopting further regulation, moratoriums and additional fees only increases the price of a house in our community. Between 1999 and 2005, housing prices in the once affordable Charleston metro area grew by 44 percent, far more than any other South Carolina metropolitan area. Restrictions — Highly Regressive According to Randall O’Toole, an economist and research fellow from the Thoreau Institute, large increases in housing prices almost always follow the imposition 6 of a “smart-growth” or other growthmanagement plans. Planners say such restrictions are needed to protect livability and preserve open space, but homeownership is an important component of livability. Studies show, for example, that children in low-income families who own their own homes do better in school than those who live in rental housing. Homeowners can also use the equity in their homes to start small businesses or put their children through college. While the people who support such restrictions often describe themselves as “progressive,” the restrictions are in fact highly regressive. The burdens are heaviest on low income families and other first-time homebuyers while the planning rules provide windfall profits for relatively wealthy homeowners and certain landowners. Moreover, the losers vastly outnumber the winners. Homeowners only win if they are willing to sell their homes and trade down to a smaller home or move to a city that has less-restrictive land-use rules. Homeowners who want to trade up or move to a more restrictive community face penalties that are nearly as formidable as those confronting first-time homebuyers. Meanwhile, losers include most homebuyers as well as rural landowners whose property is downzoned by the planners. Land-Use Decisions Are Not Easy South Carolina’s long-term future can be seen in California, many of that state’s cities began drawing urban-growth boundaries and passing other planning restrictions in the 1970s. Today, a house that costs $190,000 in Columbia and $340,000 in Charleston/Mt. Pleasant would cost $450,000 in Ft. Lauderdale, $550,000 in Sacramento and well over $1 million in Oakland, San Francisco or San Jose. If Columbia and others communities continue to pass growth-management Mark Nix Executive Director HBA of South Carolina A housing community will not be marketable if it does not reflect the needs and standards of its homeowners and the community. plans, their housing will soon be as expensive as Florida’s and eventually it will be as expensive as California’s. California’s high prices have created serious problems for that state. Economic growth is slow because employers look elsewhere to locate offices and factories. Land-use decisions are not easy, but we can learn from other communities that promoted these types of restrictions and failed. The path of good development is to allow the market to find itself. A housing community will not be marketable if it does not reflect the needs and standards of its homeowners and the community. SCBJ South Carolina Builder Journal • 2008 • www.hbaofsc.com SCBJ 08v1n2.indd 6 4/2/08 11:00:42 AM D A W e o E s AT , A MOMENT LIKE THIS, AREN T YOU GLAD YOU HAVE BUILDERS MUTUAL? Safety harness purchased from buildersmutual.com April, 2006. D id you know that falls are the most frequent, severe – and most preventable – type of injuries on a jobsite? As the only insurance carrier devoted exclusively to builders, we’ve developed our own WorkSafe Fall Protection Program. Builders Mutual takes fall protection seriously – in fact, we even offer discounted “Safety Stuff,” like the harness above, through our website. Additionally, our policyholders have unlimited access to Builders University OSHA-approved safety courses, English/Spanish Fall Protection Certification, and our risk management CD containing valuable safety reference materials. Staying safe and productive is just a matter of having the right tools. SCBJ 08v1n2.indd 7 800.809.4859 www.buildersmutual.com 4/2/08 11:00:46 AM s G o v e r n m e n t A f f a i r Government Affairs 8 Residential Improvement Districts (RID): A NewDistricts Option Residential Improvement A s a result of the impact of the Property Tax Reform Act of 2006 and the declining growth of local government revenues, fast-growing counties are having some difficulty in cash funding infrastructure for residential growth. While residential growth pays for itself over time, there can be cash flow issues on the front end. In February 2008, a bill (H. 4745) was introduced to address this problem by making changes in the existing special tax assessment district law. The driving force and author of the bill is Rep. Mick Mulvaney from Lancaster County. Co-sponsors of the bill include Reps. Young, Umphlett, Ballentine, Huggins, M.A. Pitts, Bedingfield, Haley, Lowe, Clemmons, Viers, Scarborough, Edge, Harrell, Cotty and Knight. The bill provides for the creation of Residential Improvement Districts (RID) in a county or city. The creation of the “district” is developer initiated. The developer has to summit the request for the creation of the RID, along with the projected infrastructure cost to the city/ county council for their approval. When the local government approves the RID, the developer will install the infrastructure and bond the infrastructure cost. Over the span of the life of the bonds, the property owners within the RID will pay an annual extra tax assessment to pay off the bonds. by Julian Barton, HBASC director of government affairs T 1. 2. The incremental tax will be a separate line item on the annual property tax bill, and will cease when the bonds are paid off. The bill would allow non-contiguous property to be included in an “Improvement District” (not currently allowed), which would make it easier for developers/county officials to finance infrastructure in the bond market. The bill also allows for the local governments to assess a “special district fee,” which is capped at 4 percent of the bonds used to finance additional infrastructure beyond that which is installed by the developer. Special District Fee — Easy Pay Plan The fee could be used to fund capital items, including recreation facilities, police substations and schools. In the case of schools, the governing body must determine that the residents paying the “special district fee” must benefit from the school expenditure more than the general benefit provided to the public. Fees must be kept in a separate fund and must be used in the RID, or in the “service area” of the capital improvement. In addition, fees from several “improvement districts” can be combined to fund one public project, as long as it is in the service district. The special district fees will be included in the cost of bonding. Unlike an impact fee which generates “sticker shock” on the front end of a house purchase, the special district fee provides an “easy pay” plan for homeowners to The bill provides for the creation of Residential Improvement Districts (RID) in a county or city. The creation of the “district” is developer initiated. South Carolina Builder Journal • 2008 • www.hbaofsc.com SCBJ 08v1n2.indd 8 in o h o o b 4/2/08 11:01:02 AM 3. t in ral d to the ill se s s n al nt n y. f s d. incrementally pay off the cost of the bonds over a 20-year period. Instead of the first homeowner paying the infrastructure cost on the front end, the owners of the home over a twenty year period pay off the bonds annually. The advantage of this bill is that: 1. It is fair and keeps the playing field level for all developers. 2. It increases the developer’s ability to secure infrastructure funding. 3. It ensures the proper funding of infrastructure within the “district.” 4. It is voluntary and developer originated. 5. It helps local governments finance needed infrastructure. 6. It keeps houses affordable by using “easy payment” plan to finance infrastructure. 7. It provides limited funds for local governments to cover ancillary expenses associated with residential development. 8. It also has accountability for and limits on local governments in regard to taxing. 9.It preserves the planning process as local government must approve RIDs. 10.It helps local governments with the cash flow issues in rapid development areas and assures that growth pays for itself. In conclusion, the Residential Improvement District bill is a win-win option for homeowners, local governments, developers and homebuilders. The bill is expected to receive consideration by the General Assembly in April and is supported by the Home Builders Association of S.C. and the S.C. Association of Realtors. SCBJ Talking Points H. 4745 SC Residential Improvement District (RID) Act Young, Mulvaney, Umphlett, et al. The purpose of this bill is to provide a new tool for local governments to address the infrastructure cost of new residential developments. The bill provides an innovative way to finance the cost of residential infrastructure over the life-span of the infrastructure (water mains, sewage lines, utility hookups, street lights, etc.). The bill keeps housing cost for citizens affordable, helps local governments address the cash flow issues of installing new infrastructure and insures that homebuilders have a level and predictable playing field. It is real liable solution that has worked well in other parts of the county. 1. Citizens have affordable housing in their community, so everyone can realize the American dream of home ownership. 2. Local governments have a new and more sophisticated method of funding the cost of residential infrastructure for their citizens. 3. Local governments will have increased funding (4 percent of the infrastructure cost) that can be used on capital projects on or near the RID district that may benefit the general public, as well as the residents of the RID district. 4. Ensures that the homebuilding industry has a predictable and fair procedure for creating new housing opportunities for our state’s citizens. VISIT ONE OF THESE LOCATIONS: CONWAY, SC 29526 (843)349-1901 (877)315-4510 FAX(843)349-1906 GREENVILLE, SC 29615 (864)284-9101 (800)868-5843 FAX(864)284-9197 HANAHAN, SC 29410 (843)747-0030 (877)681-5008 FAX(843)740-0048 WEST COLUMBIA, SC 29169 (803)739-1121 (800)922-3751 FAX(803)739-5776 All the Parts You Need to Build a Dream Home! Follow these instructions for building the ideal dream home. 1 Use only top quality exterior building products; 2 Choose a local, reputable distributor; 3 Choose one that offers an expansive line of products; 4 One that offers exemplary service and stands behind its products; 5 Choose Norandex Building Materials Distribution. With a nationwide system of fully stocked branches, staffed by knowledgeable professionals, you can count on the products you need, on time and where you need them, including: Siding / Soffit / Manufactured Stone / Windows / Doors Gutters & Downspouts / Storm Products / Skylights Vinyl Fence / Deck & Rail / Accent Products, and more. WWWNORANDEXCOM www.hbaofsc.com • South Carolina Builder Journal • 2008 SCBJ 08v1n2.indd 9 9 4/2/08 11:01:12 AM after after ar sa sm lo p p ar th d th before before Renovations, Additions & Repairs ... A Remodeling in South Carolina by Marie Grogitsky mericans spend more than $235 billion each year on remodeling and for the members of the Home Builders Association of South Carolina whose bottom lines include a portion of that money — business is good. According to Tony Thompson, owner of Remodeling Services Unlimited, Inc. in Columbia, remodeling as a segment of the homebuilding industry is still doing very well in South Carolina. According to National Association of Home Builders (NAHB) statistics, 43 percent of those remodelors who responded reported an increase in billing in 2007, while 25 percent reported that billing stayed at the same level as in 2006. With respect to 2008, 51 percent predicted a dollar volume increase and 27 percent predict maintaining the same volume for the entire year. These results suggest that while remodelors see slower conditions in their business during the short term, the long-term prospects look good with a remodeling market recovery by the end of 2008. “I really think the outlook for the next five years is very good,” said Thompson. “This year was a slow start, but things are looking good.” The remodeling industry is resilient because it can flourish in both good times and bad for new home sales, said Mark Bostic, owner of Square One Plan Service in Columbia. Bostic, who designs both custom homes and remodeling projects, recognizes that doing both kinds of designs diversifies his business and keeps 10 work coming in even when the homebuilding industry slows. “It seems when the new home market is up, remodeling projects are also up. People moving into newly built homes are selling their older homes to people who want to remodel,” said Bostic. “When the housing market is down, remodeling projects are still up. People stay in their homes and remodel rather than buy that new house. It’s a win-win for someone in remodeling.” Historically, trends show that remodeling follows the same cycle of ups and downs as homebuilding. However, those ups and downs are not nearly as severe. Remodeling provides a cushion for a custom homebuilding operation. “When the stock market is down, people will put their money somewhere else. They put it into their other large investment, their homes,” said Bostic. What Are They Remodeling? Residential remodeling includes everything from work on kitchens and baths to additions, outdoor kitchens, structural repair, cosmetic work and window and door replacement. “Kitchens and baths are the most remodeled room,” said Thompson. “Of course each project is unique, but most projects start with a kitchen or bath.” Thompson’s comments are reflected in national trends. According to the National Kitchen & Bath Association, more homeowners renovated their kitchens in 2007 — 7.57 million, up from 7.44 million in 2006. However, they spent a lot less, $96.2 billion compared with $127 billion in 2006. We are builders and the continuing education that comes with this program (S.C. Master Builder certification) proves we are good builders. — Tony Thompson, Remodeling Services Unlimited, Inc. Bathroom renovations this year are expected to rise by 5.3 percent to 10.9 million from 2006, while spending will grow 3.8 percent to $70.2 billion from 2006, the trade group said. Conservative Approach — Durable Products While more homeowners are improving their existing homes, they’re also more conservative these days, said Thompson. “Perhaps a better way to put it is that they South Carolina Builder Journal • 2008 • www.hbaofsc.com SCBJ 08v1n2.indd 10 4/2/08 11:02:07 AM o “I P m in a u re in ca b su in ca “R te w cu E si re in th in p ex b y o si ca th su al cr in er le to p ed as . s g t s . r ) e . g . are looking for more durable products,” said Thompson. “Projects may be a bit smaller, but customers are definitely looking for something that is going to last.” Bostic agreed that the size of the projects has gone down, adding that people are doing their homework. “They are being very cautious about what they’re spending their money on. They’re doing their homework a lot better than they were five years ago.” The educated homeowner makes for an overall better industry, said Thompson. “It is a different type of construction. Profit margins are different, and it can be more difficult to make money.” Thompson pointed out that remodeling jobs often have a quicker turnaround and a builder’s equity doesn’t get tied up for a long time. However, other remodeling variables including customer interaction, management and communication can greatly affect the builder’s bottom line. Remodelors often face some substantial challenges. “Most of the time people are still living in their homes, and the level of communication has to be very good,” he said. “Remodeling is a lot less predictable in terms of both what you’re going to find when you tear down that wall and the customer living onsite.” Educational Opportunities There are dozens of different professional and education designations that remodelors can obtain including becoming a Certified Graduate Remodelor through NAHB. This designation indicates that a remodelor has completed professional requirements including extensive educational credits, prescribed business standards and has at least five years of remodeling experience. “Homeowners need to be looking for a professional they can trust, who is insured and can provide references. Designations like this one provide that.” Both Bostic and Thompson strongly suggested that remodelors in South Carolina also become Master Builder certified. The S.C. Master Builder program was created by the HBA of S.C. as a way to increase the professionalism of homebuilders in the state and to provide an increased level of protection for consumers. In order to reach this level, builders have to participate in 20 hours of continuing education, provide seven reference letters, assure a one-year warranty on all homes and have at least five years of experience in the industry. “We are builders and the continuing education that comes with this program proves we are good builders.” Remodelors like Thompson are also recognizing that as baby boomers age, remodeling a home becomes a necessary function of life if the homeowner is going to continue to live in that house. Thompson is a NAHB Certified Aging Place Specialist (CAPS). A remodelor who holds the CAPS designation is someone who has invested time to learn the strategies and techniques for designing and building aesthetically enriching, barrier-free living environments for older Americans. CAPS professionals specialize in different ways to incorporate universal design changes to homes without having the “institutional” look. Remodelors, like their counterparts in custom homebuilding, are looking at various aspects of Green Building and most are implementing those environmentallyfriendly practices into their businesses. Location, Location, Location While some homeowners are remodeling instead of putting their homes up for sale in a softening market, others want to modernize their older houses in a specific area they want to call home. They are creating a strong investment in their community and often revitalizing neighborhoods. Greg and Celeste LaPointe did just that. They set up to find a home in downtown Columbia that would accommodate their family of five. They found a house built in 1949 that had real potential, but first had to be completely remodeled. They were only the fourth family to live in the home that had never been radically renovated. “It was about the location and where we wanted to live,” said Greg. “Remodeling offers someone the opportunity to live were they want to live. Often when you buy a new house, you have to go to the product.” They turned the attic into an upstairs bedroom (adding a dormer), created a master suite in the basement (complete with private sun porch), raised parts of the ceiling, and painted and updated every room in the house going from a two bedroom, one bath home to a four bedroom, three and one-half-bath home. They only added 400 square feet of space, but remodeled and restored the entire inside and outside of the home. They made every effort to reuse parts of the house to maintain the historic character including reusing all of the doors and hardware as well as resurfacing the older hardwood floors and matching molding that was already in the house. “We found the right house, and we found the right builder,” said Greg. “If we needed to, we would do it again in a minute.” In the end, their remodel not only gave them the house of their dreams in a community they grew up in, it proved to be a sound financial investment. They paid $400,000 for the original house, put $250,000 into the remodel/restoration and had the house appraised for $675,000. Chuck and Holly Campbell remodeled their kitchen in 2005 and recently completed their second remodel, a guest bathroom. Like the LaPointes, the Campbells wanted to stay in their neighborhood. They took on the first remodeling project to update their aging home. “It was built in the early 1980s and had that lingering 70s look,” said Chuck. “Our first project was an extensive one. We didn’t have full use of our kitchen for three months and lived around the work. It was difficult, but we are very satisfied with the result.” The Campbells were so satisfied with that first project they completed a second one last year and are looking at preliminary costs and plans for a third, the remodel of their master bathroom. The HBA of S.C. also recently undertook a renovation of their own. State offices, constructed in 1895, had fallen into disrepair and in 2006 HBA members began working on raising funds for an extensive remodel that is now complete. HBA of S.C. Executive Director Mark Nix explained that the association’s decision to remodel was also based on location. “The reason we made the decision to remodel and not sell the building was the location. We are located only two blocks from the capitol — I can look out my window and see the capitol dome,” he said. He emphasized the fact that the remodel also allowed their offices to remain in a home, and not move to an office space. “We thought it was important that we have a presence at the capitol while maintaining the core of our association … the home. Even our remodel focused on keeping our building a house and not an office building.” For a list of donors who contributed to that office renovation project see the related story on page 12. SCBJ www.hbaofsc.com • South Carolina Builder Journal • 2008 SCBJ 08v1n2.indd 11 11 4/2/08 11:02:39 AM Renovation Donors Honored at HBASC Reception Office renovation donors include: T he Home Builders Association of South Carolina honored all of its office renovation donors recently with a reception at the newly renovated office in Columbia. A plaque recognizing all of the donors was unveiled and displayed at one of the entrances to the more than 100-year-old office. Donors, members and South Carolina legislators were invited to celebrate the official opening of the office, as well as the naming of the Neiri Family Board Room and the Mungo Meeting Room. The Executive Committees (2005-07), who were instrumental in orchestrating the enormous project, were honored with a plaque in the Neiri Family Board Room. “The Home Builders Association of South Carolina greatly appreciates the generous contributions of those who gave to this worthy project,” said Mark Nix, HBA of South Carolina executive officer. “Without the donors, the office renovation could not have happened.” SCBJ Platinum Level — $25,000 Great Southern Homes Mungo Homes PGT Industries Gold Level — $10,000 84 Lumber Anchor Retaining Wall Systems John Cone Harry Dill Essex Homes Southeast Jim Gallagher HBS Foam Insulation Icynene Lennox Loveless & Loveless Sears SCHB Self Insurers Fund Southern Staircase Stock Supply Silver Level — $5,000 Bronze — $1,000 Anderson Window Builders Wholesale Boozer Lumber Joe Brewer Builders First Source Frank Clark C.K. Services CK Supply Cosa Bella Franklin D’s HBA of Greater Spartanburg HBA of Sumter — Clarendon Hummingbird Shutters Lti Designs, LLC Marsh Furniture Shannon Heating and Air Square One Design Service Tim Stier Weaver Systems, Inc. Advance Design Systems John Ahern Andy Anderson Associated Construction Thomas Bagnal Builder’s Hardware of Columbia BWC Colin Campbell Charleston Trident HBA Columbia Wholesale Colorado’s Painting, LLC Howard Cox GBS Lumber James “Bugsy” Graves Jim Gregorie HBA of Aiken County HBA of Anderson HBA of Greater Columbia HBA of Greater Pee Dee HBA of Greenville HBA of the Lowcountry HBA of Orangeburg-Bamberg-Calhoun HH Gregg Hilton Head Area HBA Horry-Georgetown HBA Kane Industries, Inc. Lakelands HBA The Lite House Robert C. Lane Moen Wesley Murdaugh Frank Norris Larry Paul Lincoln Privette Remodeling Services Alvin Roberts Roofing Supply of Columbia Sadler & Company Richard Sendler Bill Smith Keith Smith Sherwin Williams Stock/Ferguson USB Structural Connectors C Executive (L to R) Retired HBAS n Donor John Officer and Renovatio ation. Cone enjoys the renov Nieri and (L to R) Jack Nieri, Matt Family eri Michael Nieri in the Ni Board Room. on and (L to R) Rep. Gene Pins ive Lakelands HBA Execut n. Director Nick Nicholso 12 eater Pee Dee (L to R) HBA of the Gr ent Marvin Immediate Past Presid y Brown. Tisdale and Rep. Grad South Carolina Builder Journal • 2008 • www.hbaofsc.com SCBJ 08v1n2.indd 12 4/2/08 11:03:50 AM Sh Co n SCBJ 08v1n2.indd 13 4/2/08 11:03:56 AM i r s Regulatory Affairs Inclusionary Zoning Acts as a Tax on Housing R e g u l a t o r y A f f a by Mark Nix, executive director 14 Studies Show Alternatives More Effective In Addressing Affordability Problems M andatory inclusionary zoning requiring builders to sell a certain number of homes at below-market prices is a complex market intervention that can act like a tax on housing and worsen the affordablehousing problem it is meant to solve. But many alternatives to inclusionary zoning can help meet the housing needs of lowand moderate-income families. These are the findings of three studies commissioned by the National Association of Home Builders (NAHB). NAHB funded the research projects as part of its ongoing efforts to address the nation’s growing housing affordability problem. The three research projects are: •Abt Associates, of Cambridge, Mass., studied innovative state and local programs designed to address the housing affordability challenge and produced a 350-page report that explains how these strategies work, how they’re funded, where they’ve been used and the advantages and disadvantages of each. •The University of Maryland (UMD) Center for Smart Growth conducted research on inclusionary zoning based on data from a large number of jurisdictions in California between 1988 and 2005. Having data for multiple jurisdictions over an extended period of time allowed UMD to investigate the impact of inclusionary zoning on housing production and prices while controlling for differences in market conditions. • Timothy Hollister, an attorney at Shipman and Goodwin in Hartford, Conn., provided a national survey and perspective on the enabling authority and implementation details that underlie inclusionary zoning ordinances across the country. Hollister found that inclusionary zoning has more variables and potential consequences than drafters realize and must be considered carefully before adoption. “The reality is that inclusionary zoning may not work at all in many markets, and may actually worsen the shortage of affordable housing in some markets,” said Jerry Howard, NAHB’s executive vice president and CEO. “The research by Abt Associates demonstrates that there are many alternatives to inclusionary zoning that can have a far greater impact in meeting the housing needs of low- and moderate-income families.” All three reports can be found at www.nahb.org/housingaffordability. Addressing Housing Affordability Needs The researchers at Abt Associates documented 30 detailed case studies that explain how state and local governments use a variety of strategies to address their housing affordability needs. This research represents the most comprehensive report ever compiled on the subject of non-federal solutions. Most of these case studies highlight new examples not previously described in other reports by such organizations as HUD, the Center for Housing Policy and the Urban Land Institute. The Abt Associates study found that local governments most successful in addressing affordability concerns have pursued a variety of strategies to encourage affordable housing, and that the strategies getting the most press have not necessarily been the most effective. The Abt Associates research identifies the programs that really can make a difference. A good example is North Kingstown, R.I., which uses a variety of strategies, including state mandates and guidance for local planning, permit streamlining and a significant density bonus program for developers. Another example is Emeryville, Cal., which established zoning codes and development regulations to encourage infill and brownfields development, high-density housing and mixed-use development. Among the successes is Emeryville Warehouse Lofts, which includes 140 lofts, 129 other residential units, 7,000 square feet of retail space, a 4,500 square-foot landscaped courtyard and a renovated parking structure. Inclusionary Zoning Acts Like a Tax The UMD study fills a void in research into the long-term effectiveness of inclusionary zoning. The UMD study, conducted by Gerrit Knaap, Antonio Bento and Scott Lowe, assessed the effects of inclusionary zoning policies on singlefamily home prices, single-family and multi-family housing starts, and the size of single-family housing units in a number of California jurisdictions from 1988 to 2005. The study found that in California between 1988 and 2005, imposing inclusionary zoning had virtually no effect on the overall level of housing starts, i.e. it neither increased nor reduced overall housing supply. However, the results showed measurable effects on other market factors. Inclusionary zoning: • Increased multi-family housing starts by 7 percent to 12 percent when production shifted away from single-family homes as inclusionary zoning requirements increased; • Raised the price of new homes by 2 percent to 3 percent, and by as much as 5 percent for more expensive homes, compared to communities without inclusionary zoning; •Reduced the size of new homes by 48 square feet. The UMD report states that “no program, of course, is cost free. According to standard economic theory, inclusionary zoning acts like a tax on housing construction. And just like other taxes, the burdens of inclusionary zoning are passed on to housing consumers, housing producers and landowners. More specifically, economic theory suggests that inclusionary zoning requirements act to decrease the supply of housing at every price, raise housing prices and slow housing construction. As a result, inclusionary zoning policies could exacerbate the affordable housing problem that they are designed to address.” “Our report says little about whether inclusionary zoning is good or bad public policy,” said Knaap, who is director of the National Center for Smart Growth Education. “It does make clear, however, that the benefits of inclusionary zoning are not without cost — and that those costs are borne primarily by the consumers and producers of new, market rate housing.” SCBJ South Carolina Builder Journal • 2008 • www.hbaofsc.com SCBJ 08v1n2.indd 14 4/2/08 11:04:10 AM Registration Packet ch - nto e of of 5. ced s duc- e- Building the Dream 2008 HBA OF SC CONVENTION July 30 - August 3, 2008 The Marriott Grande Dunes Resort, Myrtle Beach es, am, ard s ust ary ers, re hat o y te ey her mart ar, nd y www.hbaofsc.com • South Carolina Builder Journal • 2008 SCBJ 08v1n2.indd 15 15 4/2/08 11:04:13 AM Building the Dream 2008 CONVENTION SPONSORS Gold Sponsor: Denim & Diamonds Spike Party This event is for Spike Club Members only! Start the night with cocktails and dinner, and get ready for an exciting time with dueling piano players as they perform and interact with the crowd. It’s all about great music and singing along to your favorite tunes. Denim & Diamonds attire is requested but optional for this fun event– it’s OK to wear your favorite jeans, western wear, sequin tops, big belt buckles and boots for this function. And don’t forget the BLING – diamonds, rhinestones and other embellishments are strongly encouraged! A best “Denim & Diamonds” outfit contest will be judged so dust off those cowboy boots, have the bling flashing, and you just might be a winner! Fun for All - Spike After Party The Spike Club will be opening up their party to all registered attendees starting at 9:00 p.m. Now that’s what we call southern hospitality! If you’re looking for a fun place to go after dinner, we already have that covered. We’re talking three hours of dueling piano players and the opportunity to mingle and network. You will not want to miss this event! Golf at Grande Dunes Silver Sponsor: Bronze Sponsor: International Code Council NBSC/Synovus Trust Co. Builder Journal/PrintComm Peoples Underwriters, Inc. W 6 Th 8 9 9 7 9 F 8 1 1 In lieu of a golf tournament, tee times are available on a first come, first serve basis at the Grande Dune Golf Club at $125 per person. Tee times are: Thursday, July 31st at 8:00 a.m.; Saturday, August 2nd at 8:30 a.m.; and Sunday, August 2nd at 8:30 a.m. To reserve your tee time, contact Vee Daniel at 864-809-9038 or vdaniel@hbaofsc.com. Don’t wait too late! Education Courses (All courses are approved for Certified Master Builder credit.) We all know how important education is in our careers. This year we’re offering our members the opportunity to start the NAHB’s process for earning a Certified Graduate Builder and/or a Certified Graduate Remodeler designation. That’s right! We’re offering both BAR and PREP assessments on two separate days. We’re following up from last year’s convention by offering the Business Management for Building Professionals course, one of two courses needed to become a Certified Green Professional. For more information about the NAHB’s Certified Green Professional designation, visit www.nahb.org. While the NAHB courses are an added cost to the convention registration fee, we are offering several courses at no extra cost! These courses will be instructed by local builders and experts. Marriott Resort at Grande Dunes Group Rate Information 1-800-644-2881 Standard Room $199 + tax S 7 8 8 9 1 6 S 8 H (Ocean view or resort view based on availability at check in.) * h * To receive group rate, reservations must be made by June 30, 2008. Identify yourself as an attendee of the HBA of SC 2008 Convention. # SCBJ 08v1n2.indd 16 4/2/08 11:04:16 AM , w y Wednesday, July 30, 2008 6:30 p.m. - 8:30 p.m. EOC Dinner Thursday, July 31, 2008 8:00 a.m. 9:00 a.m. - 12:00 p.m. 9:00 a.m. - 5:00 p.m. 7:00 p.m. - 9:00 p.m. 9:00 p.m. - 12:00 a.m. Golf at Grande Dunes Golf Course* Alive, Green, & Well: Green Building for Associates and Builders NAHB’s Business Management for the Building Professional** Certified Master Builder Approved Denim & Diamonds Spike Party# (Spike Club Members Only) Fun for All - Spike After Party Building the Dream 2008 CONVENTION SPONSORS Gold Sponsor: Friday, August 1, 2008 8:30 a.m. - 10:00 a.m. 10:00 a.m. - 1:00 p.m. 1:00 p.m. - 5:00 p.m. Keynote Session with NAHB Economist - Eye On the S.C. Housing Market Exhibitor Trade Show & Luncheon Enter to win door prizes! Continuing Education Sessions QuickBooks for Builders/Remodelers How to Move Homes in a Down Market Safety Developing Strategies for Resolving Construction Disputes for the Home Builder Construction Contracts Customer Service Technical Panel Discussion Introduction to Green Building for Associates & Builders Code Update Kitchen Design 101 Saturday, August 2, 2008 7:30 a.m. - 9:00 a.m. 8:00 a.m. - 12:00 p.m. 8:30 a.m. 9:00 a.m. - 12:00 p.m. 1:00 p.m. - 3:00 p.m. 6:00 p.m. - Midnight Silver Sponsor: Bronze Sponsor: International Code Council NBSC/Synovus Trust Co. Builder Journal/PrintComm Peoples Underwriters, Inc. Board of Directors Meeting battle NAHB Green Building Verifier Training** of the Golf at Grande Dunes Golf Course* builders NAHB’s BAR & PREP Assessments** Battle of the Builders Competition PAC Silent Auction Reception & Grand Finale Party Entertainment by Mama’s Home Cooking Band Dress: Beach Casual Sunday, August 3, 2008 8:30 a.m. Hotel Check Out Golf at Grande Dunes Golf Course *Tee times are available on a first come, first serve basis at $125 per person. Contact Vee Daniel at 864-809-9038 or vdaniel@ hbaofsc.com to reserve your tee time or for more information. **The cost of this course is in addition to your convention registration fee. Please refer to the registration form for the actual cost. # To qualify for the Denim and Diamonds Spike Party, you must be a current Spike & earn at least 1 Spike Credit between July 1, 2007 & June 30, 2008. SCBJ 08v1n2.indd 17 4/2/08 11:04:18 AM Home Builders Association of S.C. State Convention July 30-August 3, 2008 ATTENDEE INFORMATION Last Name First Name Badge Name (if different from above) Local HBA Last Name Member ID # Company Name Child’s Name/Age Address Child’s Name/Age City Phone Number B u i l d e r First Name SPOUSE/GUEST INFORMATION State P r o f i l e Building the Dream Zip Child’s Name/Age Fax Number Email Address Check all that apply: Builder Associate Spike Non-Member EO/Staff First-Time Attendee REGISTRATION FEES* & OPTIONAL TICKETED EVENTS PAYMENT INFORMATION HBA Member**: $245.............................................................................................$_____________ Postmarked after May 30th, fee increases to $300. VISA MASTERCARD CHECK First-Time Attendee**: $200..................................................................................$_____________ Postmarked after May 30th, fee increases to $300. Card Holder Name Non-Member**: $375..............................................................................................$_____________ Card Number Spouse/Guest** (Limit 1 per registrant): $150....................................................$_____________ S Exp. Date Child** (under 16): $25.........................................................................................$_____________ Golf: $125 per person x #of people______............................................................$_____________ NAHB Education Course (7/31): $225 Member; $325 Non-Member..................$_____________ NAHB BAR Assessment (8/02): $195 Member; $195 Non-Member...................$_____________ NAHB PREP Assessment (8/02): $195 Member; $195 Non-Member.................$_____________ NAHB Green Building Verifier Training (8/02): $100 Member w/Convention Registration; $200 Member w/o Convention Registration; $400 Non-Member.......................$_____________ TOTAL DUE......................$__________ *Registration fees include the following events: Opening Session Breakfast, Spike Party (for qualifiers & a guest), Spike After Party, Exhibitor’s Lunch, Trade Show, Finale Dinner, PAC Silent Auction, and breaks between courses. To qualify for the Spike Party, you must be a current Spike and earn at least 1 Spike Credit between July 1, 2007 and June 30, 2008. **On-site registration fee: $325 Member/First-Time Attendee; $375 Non-Member; $200 Spouse/ Guest; $25 Child. SCBJ 08v1n2.indd 18 Signature Make checks payable to: HBA of South Carolina 1419 Pendleton Street Columbia, SC 29201 Fax registration form to: 803-254-5762 Due to contract obligations, no refunds will be issued for cancellations received after June 30, 2008. All refunds requests received by the cancellation deadline will be processed after August 3, 2008. A cancellation fee of $50 will be assessed. Hotel group rate cut-off date does not guarantee the hotel will not sell out prior to the cut-off date. To ensure a room at the convention hotel, please make your reservations as early as possible. 4/2/08 11:04:22 AM F by c re M S d “ si K e , , . e . e P r o f i l e B u i l d e r N Dream Square One Plan Service Living the Designer Credits Giving 100 percent to Success F by Marie Grogitsky or most people the childhood dreams of being a fireman or cowboy are just that — childhood dreams that fade with the reality that comes with age. But for Mark Bostic, owner Square One Plan Service in Columbia, his childhood dream of designing houses became his “grown-up” reality. Bostic remembers a project in fifth or sixth grade where he had to design his own house. He recalls thinking it would be a fun thing to do for a living when he grew up. That memory ultimately led to architectural design school and to starting his own business doing what he calls an “amazing job.” He is quick to credit his success to being able to make money doing something he loves. “I can’t tell you how much fun it is to have a job and get paid for something you would do for free because you love it,” said Bostic. “It’s amazing to have a job where it’s just me and a pencil (now me and a computer). It just doesn’t get any better than that.” Bostic founded Square One Plan Service in 1991, with a focus on custom residential design. Bostic is quick to credit his homebuilding industry background to his success. He said his experience in working with homeowners and builders helped him gain valuable insights which allow him to take buyer’s needs and ideas and transform them into efficiently built homes which are within the purchaser’s Continued on page 20 www.hbaofsc.com • South Carolina Builder Journal • 2008 SCBJ 08v1n2.indd 19 19 4/2/08 11:04:27 AM Builder Profile Continued from page 19 budget. “I have always taken a total approach when designing,” he said. “I was trained at designing entry level houses. Cost is a big part of the puzzle, but you can never sacrifice the beauty. That’s what people want.” He explained his total approach as treating every design, whether for that entry level house or for a 7,000-square-foot vacation home, as the most important job he has undertaken. “When you are designing you have to make sure you lay out the house taking into account every detail,” he said. “You want to save on materials and cut costs where you can. Every dollar counts.” Today, Bostic offers custom design services in the local Columbia area. He utilizes a two-step process which involves a preliminary phase where clients needs, site issues and building costs are addressed. “I am hands on,” said Bostic. “Unlike some designers, I’ll go out to the lake property and see what’s going on at that property. Everybody is an individual with individual needs.” Actual working drawings are then completed by Bostic, who takes all of those needs into account. Learning the Trade Bostic graduated from Clemson University with a degree in architecture. He then went to work for his mother in the swimming pool business before the first opportunity to use his design skills came his way. That opportunity just happened to be in the custom homebuilding industry. A friend of his was discussing the need to outsource design work and the expense involved in that. Instead of outsourcing, the homebuilder hired him and put an architectural designer on staff, fulltime. “I went to work for Shumaker Homes and learned the trade,” he said. “We designed entire builder product lines. I can’t say enough about what I learned there. I learned about the homebuilding trade from some of the best.” Six years later an economic slow down led to his layoff, and Bostic found himself being asked the question, “What are you going to do now?” His answer was simple, that was at least in his mind. I said I was going to start my own business,” explained Bostic, who was just a month away from getting married. “I’ll 20 never forget starting out. I joined the Great Columbia HBA in September 1991, started Square One and got married. The path opened up for me, and for that I am grateful,” said Bostic. He fondly recalls his first HBA meeting and being a little nervous that he wouldn’t measure up to the leaders and “captains of industry” that would be there. The experience he had during those first few meetings helped shape the businessman he is today. “There is only a limited amount of time in the day, so when I attended those meetings, I was like a sponge. I learned about what the industry has to offer. Those leaders where willing to offer advice and answer questions.” A Multi-Faceted Design Business Bostic describes his design business as three-pronged, soon to branch out into four. Bostic designs complete targeted builder and developer product lines (subdivisions), individual residential custom homes and home remodels of every scope and size. “I really think that being good at each individual part of my business makes me better at the others,” said Bostic. Square One Plan Service offers complete working drawings for new homes as well as remodeling projects with plans ranging from 1,800 to 3,150 square feet. Custom design services are also available, he said. They all feature the efficient design and material usage that keeps builders competitive, as well as the space, features and street appeal that buyers demand. Further specializing, Bostic is a leader in Green Building in the Columbia area. He is currently building his own new house to Green Building standards — more energy efficient, considerably more environmentally friendly and generally a more superior product compared with standard building technology. From work on his house and endless hours of seminars, reading books and magazines, and working with others involved in Green Building, Bostic has learned about new ways to design and construct homes. “I’ve learned that there are many shades of green, and no one way to go green,” he said. Never Forget the Basics Green Building is just one change Bostic has adapted to over the more than 20 years he has been in and around the industry. Technology has changed and economic shifts have taken place. In the end, said Bostic, the industry is stronger for those changes. “Every so often the economy does go a little soft, and you have to relearn the basics,” said Bostic. “Cost control is always important and you have to start working smarter.” He said he has lived through other slow downs, and people have to remember that things will get back on track. He advised others to make sure they continue to work hard and put that extra effort in. “Those who give that 100 percent will make it through any type of slow down,” said Bostic. “There was a day when people would buy any plan a designer came up with. Now people are looking for the best, and that will make this industry stronger.” HBA Membership Bostic is still a member of the Home Builders Association of Greater Columbia, the Home Builders Association of South Carolina, the National Association of Home Builders (NAHB), as well as a member of the Greater Columbia and NAHB remodelors councils. He is a very strong believer that you have to do more than just join your local, state and national HBA — you have to get involved. “It truly is a case of you get out of it what you put in,” said Bostic. “Yes, joining is important, but it’s worthless without participation. Especially for someone like me, I’m on my own, and the HBA is a great resource. They’ve helped me grow.” In keeping with his commitment to the HBA, Bostic has served on numerous Greater Columbia HBA committees including serving as the chairman of the sales and marketing committee, remodelors council chairman and is currently the chairman of the Green Building Council of Greater Columbia. Bostic has won dozens of awards for his designs in both the Greater Columbia HBA and the HBA of South Carolina as well as Parade of Home design awards. He recently designed the plans for the remodel of the HBA of S.C.’s offices. “I have always believed it’s about doing the best you can,” he said. “If you do that and give 100 percent, then the rest will take care of itself.” Bostic also serves on the Zoning Board of Lexington County and is a member of St. Michael’s Lutheran Church. He and his wife Cindy have two children, Matthew and Megan. SCBJ South Carolina Builder Journal • 2008 • www.hbaofsc.com SCBJ 08v1n2.indd 20 T 4/2/08 11:04:31 AM r The Clear and Present ofGrowth Smart Growth The Clear and PresentDanger Danger of Smart T w ue ” a, e d Wendell Cox Charleston, with some of the nation’s most restrictive housing regulations has a Median Multiple of 4.8, rating — “seriously unaffordable.” e A y ” .” he affordability of housing is overwhelmingly a function of just one thing, the extent to which governments place artificial restrictions on the supply of residential land. These are the words of Dr. Donald Brash in the Foreword to the 4th Demographia International Housing Affordability Survey (the survey can be accessed at www.demographia.com/dhi. pdf). Brash served 14 years (1988-02) as the governor of the Reserve Bank of New Zealand, a position parallel to that held (1987-06) by Alan Greenspan as chairman of the Federal Reserve Board of the U.S. This year’s Demographia International Housing Affordability Survey is again co-authored by Hugh Pavletich of Pavletich Properties in Christchurch, New Zealand and me. This year we included 227 markets in six countries — the U.S., the United Kingdom, Canada, Australia, Ireland and New Zealand. A number of new markets — 68 — were added, principally because of the mounting evidence that households are leaving the most unaffordable markets to move to less affordable markets, including smaller markets. The stunning domestic migration trends were described in a previous article. We use the World Bank and United Nations recommended standard for measuring housing affordability, the Median Multiple. The Median Multiple is calculated by dividing the median house price by the median household income. Until recently, this figure has been 3.0 or below in each of the surveyed nations. Now, the most unaffordable markets are above 10.0. What is the reason for the explosion in house prices in some metropolitan areas? Again, Brash has the answer: the one factor which clearly separates all of the urban areas with high Median Multiples from all those with low Median Multiples is the severity of the artificial restraints on the availability of land for residential building. And the markets are separated with a vengeance. As late as 1996, only 100 markets out of the top 100 in the U.S. had Median Multiples above 4.0. Since that time, the figure has risen to 23. Liberal economist Paul Krugman understands the issue, unlike most of the more conservative business and economic press in the U.S. While the conventional wisdom is that there is a “housing bubble,” Krugman rightly points out that house prices have escalated against incomes only in part of the country and that, for there is little in the way of a housing bubble. What’s more, Krugman rightly diagnoses the cause — regulation. Two Completely Different Speeds And, indeed, the U.S. housing market has developed at two completely different speeds. There are the highly regulated markets (that typically employ so-called “smart growth” policies) where the Median Multiple has doubled or even tripled in a decade, such as Los Angeles, San Diego, San Francisco, Miami, Washington, New York and Boston. Then, there are the affordable markets, where there has been only modest price escalation, such as Atlanta, Dallas-Fort Worth, Houston and a host of others. The more naïve economic analyses have blamed more liberal mortgage credit standards for the nation’s rising average median price. But averages mask much. A number of economists have fallen into the “law of demand” trap. However, economics tells us that demand, in and of itself, does not raise prices unless there is some constraint on supply. Constraints on supply are the “name of the game” in the highly regulated markets. Just since 2000, the median prices has risen $160,000 in the more highly regulated markets compared to the more traditionally regulated markets — call it a smart growth tax. The irony is that some of the most prominent advocates of smart growth actually claimed that it would lower house prices. There ought to be a Nobel Anti-Prize in economics for the likes of these. There is no doubt that demand has played a role. More liberal credit expanded demand all over. However, it propelled inordinate price escalation only where planning systems were not able to gracefully handle it. The evidence could not be starker. Take Atlanta, Dallas-Fort Worth and Houston, where the Median Continued on page 22 www.hbaofsc.com • South Carolina Builder Journal • 2008 SCBJ 08v1n2.indd 21 21 4/2/08 11:04:42 AM Smart Growth Continued from page 21 Multiple remains below 3.0. These are the three fastest growing metropolitan areas of more than 5,000,000 population in the high-income world. Another way of putting it is that these affordable metropolitan areas have the highest demand for housing in the high-income world. Nation’s Most Restrictive Housing Regulations Why have housing prices been comparatively stable in these growth dynamos, while they have doubled or tripled in now slow growing San Diego, San Francisco and Boston? The answer is given not only by Brash, but also by other central bank economists who have noted similar results, such as Dr. Ian MacFarlane, former governor of the Reserve Bank of New Zealand, Dr. Kate Barker, a member of the Monetary Policy Committee of the Bank of England and Arthur Grimes, chairman of the board of the Reserve Bank of New Zealand. Brash has gone so far as to propose outlawing the most disruptive smart growth strategies, such as urban growth boundaries. The two-speed housing market stretches even to South Carolina. Charleston, with some of the nation’s most restrictive housing regulations has a Median Multiple of 4.8, rating — “seriously unaffordable.” House prices in the Charleston area have more than doubled relative to incomes since 1996. The Greenville area has a Median Multiple of 3.4, which makes it moderately unaffordable. The Columbia area has a Median Multiple of 2.9 and is thus rated “affordable.” Keep Destructive Smart Growth from Spread Housing affordability is crucial. The loss of affordability is illustrated by California’s stagnant government revenues and a declaration of fiscal emergency in January by Gov. Arnold Schwarzenegger. A market with “out-of-balance” housing prices can expect difficult times, and they may just be beginning in California. Today, a mortgage on the median priced house in San Diego requires more than 75 percent of the median household income. Obviously, this is out of the reach of middle-income households. Things can only get worse as the housing stock turns over and Californians accustom themselves to a lower standard of living. The imperative is to keep destructive smart growth policies from spreading further. Presidential candidates tour the nation talking about the economic squeeze on the middle class. The rising cost of gasoline is often cited. Gas price increases have been minimal in comparison to the exploding housing costs from smart growth. Heavy handed housing regulation is surely one of the most serious threats to the future of the U.S. economy. It is time that industry leaders, the business press and elected officials take note. SCBJ Wendell Cox is principal of Demographia, a St. Louis based international public policy firm. He is also a visiting professor at the Conservatoire National des Arts et Metiers, French national university in Paris. T a th Distinctive Design. Superior Service. % Exceptional Value! % 900+ House Plans with Curb Appeal ◆ Custom details, open floorplans, great variety G p S I Volume 1 • Issue 2 • 2008 ◆ ◆ Unlimited License to Build ◆ New! Purchase a design on vellum or CD and build the home unlimited times! Celebration of Excellence G Four Inducted Into Hall of Fame www.dongardner.com View, compare and purchase plans online! Building the Dream 2008 HBA of S.C. Convention Renovations, Additions and Repairs … Remodeling in South Carolina Builder Profile Square One Plan Service Reach your target market. Advertise your business in the next South Carolina Builder Journal. Call Jeff Pinwar (800) 935-1592 ext. 118 For more information: 1.800.388.7580 or info@dongardner.com 22 Plan 967 © 2002 Donald A. Gardner, Inc. BJ308 South Carolina Builder Journal • 2008 • www.hbaofsc.com SCBJ 08v1n2.indd 22 4/2/08 11:05:03 AM h to se fr te v o o R in co G co o o e n H B A o f S. C. H o n o r s Hall Of Fame T I nd u ctees he South Carolina Housing Hall of Fame inducted four new members during a ceremony held in Greenville on Jan. 17, at the Westin Poinsett Hotel. Gale B. Crawford, Howard L. Cox, D. Aubrey Richardson and Richard N. Sendler were inducted at the Celebration of Excellence, an annual event sponsored by the Home Builders Association of South Carolina. “Each of this year’s inductees demonstrates that good builders focus not only on the quality of physical structures but also the communities around them,” said Wesley Murdaugh, S.C. Housing Hall of Fame trustee and chairman. According to Murdaugh, the S.C. Housing Hall of Fame honors individuals who have made a lasting contribution to the housing industry through their work in building and development, public service and housing-related areas such as education, architecture and planning. as chairman of the Greenville Tech Student Housing Corporation where she led the campaign to construct the first dormitories in the state Technical College system. The HBA of Greenville honored Crawford with the Gale B. Crawford Carpentry Scholarship awarded to a Greenville Tech student each year. Howard L. Cox Gale Crawford (center back) poses with her family at the S.C. Housing Hall of Fame Induction ceremony. For more than 30 years, Howard L. Cox, CIC, has been a member and served on various committees of the Anderson, Greenville, Greenwood, Oconee and Spartanburg Home Builder Associations. He has been recognized as the Associate of the Gale B. Crawford Gale B. Crawford has distinguished herself as a homebuilder who is dedicated to her association, the community she serves, her charities, and her family and friends. She has served two consecutive terms as president of the HBA of Greenville; director and District 4 vice president of the HBA of South Carolina; life director of the NAHB and member of the S.C. Residential Builders Commission. Besides her service to the homebuilding industry, Crawford also contributes to her community, where she has served on the Greenville County Council. She is an area commissioner of Greenville Tech, served on the Greenville Tech Foundation Board of Directors and most significantly, served Year for both the HBA of Anderson and the HBA of Greenville; and the South Carolina nominee for the 2002 NAHB Associate of the Year. In 2002, Howard Cox was inducted into the NAHB Society of Honored Associates, the first South Carolinian inducted, which recognizes associates who have distinguished themselves through outstanding service and contributions to their HBA, housing industry and community. Cox has also been very active with the state HBA by serving as a S.C. Builders PAC Trustee, Membership Committee chairman, associate vice president, district associate director, as well as, a Program Committee chairman. While he has served the state and local HBAs with countless years of service and leadership, it was his instrumental work in the formation of the S.C. Home Builders Self Insurance Fund that has provided a lasting service to S.C. home builders. D. Aubrey Richardson S.C. Housing Hall of Fame member Howard Cox and his wife celebrate his induction with a photo in front of the S.C. Housing Hall of Fame traveling exhibit. D. Aubrey Richardson joined the HBA of Greater Pee Dee in 1971 and has made significant contributions to the homebuilding industry every day since. He has served in every leadership capacity for the homebuilding community throughout his career and has been honored with such awards as the HBA of Greater Pee Dee Builder of the Year, president of the HBA of the Greater Pee Dee and president of the HBA of S.C. Continued on page 24 www.hbaofsc.com • South Carolina Builder Journal • 2008 SCBJ 08v1n2.indd 23 23 4/2/08 11:05:12 AM homebuilding, development of the housing industry and providing the American dream of home ownership in the Pee Dee region. Even within the many generous and gregarious personalities who represent the building industry, Aubrey Richardson will always be known as a big man with a big laugh and an equally big heart. Hall of Fame Inductees Continued from page 23 Richard N. Sendler S.C. Housing Hall of Fame members Bob Belk (left) inducted D. Aubrey Richardson (center) into the Hall of Fame. Also pictured is Wesley Murdaugh (right). Richardson has been recognized for his community work with the United Way, Chamber of Commerce and Special Olympics, and is a Life Spike Member of the NAHB. He continues his excellent tradition in quality Every organization strives to have a “go to” person to get the job done whatever the task, and the S.C. housing industry has been fortunate to have one in Richard N. Sendler. A member since 1984, Richard served as president of the HBA of Greater Columbia, HBA of S.C. Board member, and NAHB director and chairman of countless committees. Richard has also been recognized as the HBAGC Builder Member of the Year and the recipient of the Gordon A. Harrison Award for service and integrity. Perhaps his most significant and lasting contributions to the housing industry have been his many and tireless efforts to reform and improve the building codes and to help maintain housing affordability for the residents of South Carolina. His commitment and dedication have made a lasting contribution and substantial improvement to the S.C. homebuilding industry. The South Carolina Housing Hall of Fame began honoring builders in 1995 and has 58 members, both living and deceased. Past Hall of Fame inductees and Hall of Fame requirements can be found online at www.HBAofSC.com. SCBJ W is p st b W H Richard Sendler’s wife Carol inducts him (left) into the S.C. Housing Hall of Fame with his children looking on. m lo • • • W Connecting Local Builders to Local Politics d B th h ed th S m Email: politicalops@nahb.com NAHB State and Local Political Operations Issue Management and Grassroots Advocacy Grassroots lobbying by HBA membership or other targeted constituencies can often motivate elected officials on key issues and are effective supplements to existing government affairs programs. Some legislative priorities can also necessitate sophisticated public education campaigns aimed at altering public opinion and in turn the opinions of legislative leaders. NAHB Political Operations staff have worked with countless elected officials and HBA's to achieve legislative and political success. Helping Candidates Beyond the PAC Contribution H o o o NAHB Political Operations frequently works with local and state HBA's and their members to develop and implement independent expenditure and issues advocacy programs to impact key candidate elections. Sophisticated and targeted voter contact programs are designed and implemented by NAHB Political Operations through a partnership with local HBA staff. Programs increase membership participation in key races and define local HBA's as political dynamos. C o o o G o o Candidate Campaign Schools Candidate campaign schools provide a great opportunity to build relationships with candidates and help their campaigns in a tactful manner. This NAHB program is a one-day intensive seminar that educates both new and seasoned candidates on the latest political trends and resources available for use in their campaigns. The training provides candidates with the information they need to develop a campaign plan and budget, fundraise, target voters, develop their message and voter contact strategy, and utilize volunteers. S o B o D o Gideon Lett and Karl Eckhart can be contacted at: Phone: (800) 368-5242 or Email: politicalops@nahb.com 24 Co South Carolina Builder Journal • 2008 • www.hbaofsc.com SCBJ 08v1n2.indd 24 4/2/08 11:05:27 AM n of s South Carolina Builders Political Action Committee Your Direct Line to South Carolina Politics What Is the S.C. Builders PAC? The South Carolina Builders Political Action Committee (PAC) is a non-partisan committee that provides financial support to political candidates and their campaigns for election to local and state offices. Support is given to candidates who are friends of the building industry. Where Does Funding Come From and How Is it Spent? South Carolina Builders PAC (As of March 28, 2008) Hammer & Trowel Club Silver Hammer Bronze Hammer Karl Haslinger Steven Mungo Bill Smith Frank Veletto, Jr. Robin McLeod Larry Howell The Building Center, Inc. Mark Bostic Bowers Nursery, Inc. Earl McLeod Dottie LaFitte Smith Millwork, Inc. Kisker Construction, Inc. Hallmark Homes Donna Smith The Gregorie Company Vee Daniel John Butcher Wally Seinsheimer Colin Campbell Gerald Lawson Hugh Atkins Manning Lynch Phillip Lawson Harold Driver Palmetto Builders, Inc James Findley Ruth Ellen Hardee Bennett Griffin Ashley Feaster Cheryl Floyd Rose Anne O’Reilly Dino Hicks Michael Dey Steve Thomas Nick Nicholson Andy Barber Mary Ellen Brush Phillip Ford Capitol Club Local HBAs raise funds through contributions from individual members and from corporations. Most of the funds stay with the local HBA; however, some funding goes to the S.C. Builders PAC. • 80 percent is given to the local HBA for support of candidates they select. • 15 percent goes to statewide candidates, such as the governor’s race. • 5 percent helps defray the costs of operating the S.C. Builders. George Delk Wolf Construction Company, Inc. Stewart Mungo Keith Smith Builders Mark Nix David Hilburn Allen Patterson Buck Roberts Herb Witter Gold Hammer Why Join the S.C. Builders PAC? To a large extent, the climate for the homebuilding industry is determined by state and local political decisions. Joining the S.C. Builders PAC means you have a hand in who is elected to office and the legislation that will affect your bottom line. Your voice will be heard and you can make a difference! You don’t have to be knowledgeable in politics to become a member. If you are concerned about the future of the homebuilding industry in your community and in South Carolina, then you should join the S.C. Builders PAC. For more information, call (803) 771-7408 or your local HBA. Hal Von Nessen James Graves Sycamore Development, LLC Barry Davis Weaver Systems Inc. Edmund Monteith Ronald Roe Civil Engineering of Columbia David Gully Mike Lowman Hammer & Trowel Club o$2,500 annually o$1,250 semi-annually o$625 quarterly Name______________________________________ Capitol Club o$1,000 annually o$500 semi-annually o$250 quarterly Mailing Address______________________________ Gold Hammer o$500 annually o$250 semi-annually Silver Hammer o$250 (payment in full) Bronze Hammer o$100 (payment in full) Donor ounder $100 Contributions are per calendar year. Donor Level Thank you to the hundreds of donors who gave what they could to the South Carolina Builders PAC! City/State/Zip________________________________ oEnclosed is my check made payable to S.C. Builders PAC. oI want to pay in installments. I understand that my card will be automatically charged. oPlease charge my entire contribution to my credit card. Circle One: MasterCard VISA Phone Number_______________________________ Card Holder’s Name___________________________ Fax Number_________________________________ Card Number________________________________ E-mail Address_______________________________ Signature___________________________________ **Give us your e-mail address and we will send you the weekly Legislative Report. Expiration Date_______________________________ Local Association_____________________________ S.C. Builders PAC can accept both personal and corporate contributions. www.hbaofsc.com • South Carolina Builder Journal • 2008 SCBJ 08v1n2.indd 25 25 4/2/08 3:44:04 PM Calendar of Events ▲ April ▲ May ▲ June ▲ July 12-27......................................................................................................................................... Charleston-Trident HBA Parade of Homes 14.................................................................................................................. HBA of Aiken County Associates Appreciation Luncheon 19-20, 26-27............................................................................................................................... HBA of Greater Columbia Tour of Homes 24..................................................................................................................................HBA of Greenville Chili Cookoff & Oyster Roast 24...................................................................................................................................... HBA of Oconee General Membership Meeting 29-May 3.......................................................................NAHB Spring Board Meeting, Washington Hilton Hotel, Washington, D.C. 30..................................................................................................................................NAHB Legislative Conference, Washington, D.C. 2.............................................................................................................................................. HBA of Anderson Spring Golf Tournament 3-4.............................................................................................................................................. HBA of Greater Columbia Tour of Homes 12..................................................................................................................................................HBA of Aiken County Golf Tournament 14............................................................................................................... HBA of S.C. Executive Committee Meeting, Columbia, S.C. 15....................................................................................................................................... HBA of York County Spring Golf Tournament 22...................................................................................................................................... HBA of Oconee General Membership Meeting 9-13....................................................................................................................................................... HBA of Aiken County Builder Blitz 18........................................................................................................HBA of Greater Columbia Summer Outing & Golf Tournament 26...................................................................................................................................... HBA of Oconee General Membership Meeting 30-Aug. 3..........................................................HBA of S.C. State Convention, Marriott Grande Dunes Resort, Myrtle Beach, S.C. Education Calendar April 14: ABC’s of Building Part II: Rough-Ins & Finishes. Hosted by the Greater Columbia HBA. For more information, contact Heather McDonald at 803-256-6238 or heather@columbiabuilders.com. April 17: Significant Changes to the 2006 IRC. Hosted by the Tri-State Consultants in association with the HBA of Anderson and the HBA of Oconee. For more information, contact the HBA of Anderson at (864) 226-0347 or the HBA of Oconee at (864) 882-1657. ▲ ▲ April 21-22: NAHB’s IRM II: Marketing strategies, Plans and Budgets. Hosted by the Greater Columbia HBA. For more information, contact Heather McDonald at (803) 256-6238 or heather@columbiabuilders.com. April 28-29: NAHB’s Green Building for Building Professionals. Hosted by the Horry-Georgetown HBA. For more information, contact the Horry-Georgetown HBA at (843) 347-7311. ▲ ▲ ▲ ▲ ▲ ▲ ▲ 26 The following education opportunities are approved for Certified Master Builder credit. April 30: NAHB’s Business Management for Building Professionals. Hosted by the Horry-Georgetown HBA. For more information, contact the Horry-Georgetown HBA at (843) 347-7311. May 1: Building Codes Workshop. Hosted by the Horry-Georgetown HBA. For more information, contact the Horry-Georgetown HBA at (843) 347-7311. May 12-14: NAHB’s Certified New Home Sales Professional. Hosted by the Greater Columbia HBA. For more information, contact Heather McDonald at (803) 256-6238 or heather@columbiabuilders.com. June 9: NAHB’s Essential Closing Strategies. Hosted by the Greater Columbia HBA. For more information, contact Heather McDonald at (803) 256-6238 or heather@ columbiabuilders.com. July 21: NAHB’s Multicultural Sales Techniques and Strategies. For more information, contact Heather McDonald at (803) 256-6238 or heather@columbiabuilders.com. South Carolina Builder Journal • 2008 • www.hbaofsc.com SCBJ 08v1n2.indd 26 4/2/08 11:06:06 AM SCBJ 08v1n2.indd 27 4/2/08 11:06:16 AM 2008 New Members First Quarter Charleston-Trident HBA JHB Associates Inc............................................................................................ John Brown Wayne-Dalton Corp...................................................................................... Frank Browning Amerigas Propane.....................................................................................David Dangerfield Real Estate Information Service Inc...............................................................Brian Foster Stephen Herlong & Associates Architects............................................ Stephen Herlong Paul Davis Restoration and Remodeling...........................................................Larry Rice Spa Crest Direct..................................................................................................... Rob Sayre KB Home............................................................................................................ David Schade Clark’s Termite & Pest Control.....................................................................Shaun Sineath Atlas Signs, Inc.................................................................................................Sean Stanton V&V Commercial & Industrial Linings............................................................Archie Vega M & M Homes Inc.................................................................................... Maynard Wren, Jr. FlooR-it-Now................................................................................................... Laurie Bixler Dogwood Homes/CC2 Development Group Inc...........................................Cris Coursen South Carolina Bank & Trust....................................................................... Craig Goldberg Clear Choice Group, LLC.............................................................................. Anthony Horne Old Man Construction, Inc............................................................................... Lee Moulton John Parichuk Paving, Inc.............................................................................John Parichuk Flooring Services......................................................................................... Barry Blackmon Blitch Plumbing.............................................................................................. John Blitch, III Coastal Empire Exteriors of Charleston, LLC................................................ Chris Brakke Flooring Services.................................................................................................Zach Davis AirTight of Charleston....................................................................................George Druyos Coastal Home Plans..............................................................................................Jeff Evans Granite Solutions...................................................................................................Scott Gise Concrete on Demand, LLC.......................................................................Thomas Hendricks Landtech Development Group......................................................................Jeffrey Hyman Coastal Market Graphics.............................................................................Mary Lattimore Edward Joseph, LLC.............................................................................................Eddie Long Streamline Homes, LLC..................................................................................Chris Pelletier The Whitney Projects, Inc...........................................................................Justin Whitney The Wooddy Law Firm..........................................................................................A Wooddy Accu-Brick............................................................................................................Bill Wright McClellan-Templeton, LLC................................................................................Andy Barber McGee Bros. Co., Inc................................................................................... Russell Huntley Prudential Carolina Real Estate New Homes Division.......................... Diana McAbee American Paving Design............................................................................... Lee McKenna WCBD-NBC2................................................................................................... Stephanie Post Pro Tek 24 Security Co............................................................................Christopher Powell Premier Power Generation, LLC....................................................................... Chris Ruhle Patton General Contracting........................................................................... Randy Sacora TNT Construction, LLC................................................................................Michael Thomas HBA of Aiken County ERA Real Estate One......................................................................................J. Allen Brodie Top Notch Painting Company...................................................................John McLaughlin Aiken Standard.......................................................................................................Art Zappa Duffie Enterprises....................................................................................... Homer Duffie, Jr. Terminix Services, Inc........................................................................................Trevor Knox Palmetto Kitchens, LLC..................................................................................Joel McCreery Watters/Pella Windows...............................................................................Milton Watters R. A. Heider Construction Co.........................................................................Robert Heider Aiken Handyman.................................................................................................John Kosko Meybohm Realtors.................................................................................Leighton McLendon Barbee Electric, Inc...........................................................................................Brad Barbee Southern Cultured Marble, Inc............................................................. Trampus Campbell HBA of Anderson Drummond Builders.................................................................................... Alan Drummond Kitchen Craft - The Healthy Gourmet Company............................................Beth Hadrys Dependable Drywall & Construction Co..............................................Donald Nivens, Jr. First Trust Mortgage........................................................................................ Paula Buckles Closet Tailors of Anderson......................................................................Robert Colcolough Cox Handyman Service..........................................................................................Larry Cox Southern Risk Insurance................................................................................Jesse Dantice Ark Construction, LLC.......................................................................................Derek Holzer Simpson Custom Homes...........................................................................Brandon Simpson Always Green Grass Painting............................................................................Jeff Holley Anderson Tile & Carpet Dist Co..........................................................................Greg Hunt Certa Pro Painters of the Upstate..............................................................Lauren Jamison Shalimar Homes, Inc...........................................................................................Rick Mehta Turner Floor Sanding............................................................................................Don Turner 28 Pa M Ke Pr A A Ta H HBA of Greater Columbia Hallmark Homes International, Inc.......................................................... Timothy Bradley Russell & Jeffcoat Realtors, Inc..................................................................Wanda Carnes Jamie Cheeks Hardwood Installation.........................................................Jamie Cheeks Home Improvement Resource Guide of Greater Columbia........................Alan Clayton Hallmark Homes International, Inc....................................................... Julia Des Champs Dunlap Vinyl Siding, Inc.................................................................................... Tina Dunlap Russell & Jeffcoat Realtors, Inc............................................................Christopher Farley Luxury Bath of Columbia........................................................................................ Tracy Fry Gerald Grubbs Construction Co................................................................... Gerald Grubbs Integrated Media, Inc.................................................................................Nathan Hartlaub Hallmark Homes International, Inc..................................................................Julie Jones Rymarc Homes.................................................................................................. Greg Lehman Lexington Custom Builders..............................................................................J. J. Nettles Russell & Jeffcoat Realtors, Inc...................................................................Paula Prewett Robbins and Miller Construction, LLC................................................... Christian Robbins Ross Carpentry, Inc..............................................................................................Robin Ross Carolina Log Center.......................................................................................... Bill Seymour Call A Pro, Inc................................................................................................. Joanne Sujata Taylor Construction, LLC..................................................................................... Gary Taylor Grateful Deeds, LLC...............................................................................................John Wall Harvey Wise Tile.........................................................................................Harvey Wise, Jr. Essex Homes Southeast..............................................................................Christopher Zell Bartlett and Davis Construction, LLC....................................................... M.L. Bartlett, Jr. Avista, LLC.......................................................................................................... Matt Bridges SunTrust Mortgage........................................................................................... Greg Bundick Dick Dyer Toyota...................................................................................................Bruce Dyer Greenwell Construction............................................................................ Jason Greenwell Encore Development, LLC................................................................................. Brad Harper The Building Center................................................................................................ Irby Hipp LaCasa Real Estate Development........................................................... J. Scott Morrison RightAir, Inc......................................................................................................Randy Nicklas JWG Container Service, LLC...................................................................... Wayne Pearson Jim Barna Log Homes..................................................................................... Wynn Phillips Keller Williams Realty...................................................................................... Terry Rainer Classical Glass of SC, Inc............................................................................... Bill Roberson Countrywide Home Loans (72041)....................................................................John Sturm The Mungo Company/Mungo Homes, Inc...............................................Gregory Sweeny Countrywide Home Loans (72041)................................................................Eugene Wang Hinson Cabinet Co., Inc.............................................................................. Lewis Westphal Countrywide Home Loans (72041)............................................................... Thomas Wilds Ballou Associates..........................................................................................Thomas Ballou Palmetto South Mortgage Corp................................................................Eugenia Bambas CH Woodworks & Cabinetry..........................................................................Hugh Brannon Crosby & Sons Construction, Inc..................................................................Betty Brogdon MOTA Industrial Services................................................................................ John Caudle Delta Homes, LLC.............................................................................................Jerry Dominic BioTek Environmental, Inc...........................................................................Ancel Hamilton Prominent Homes, Inc.......................................................................................Ray Horvath Century Financial Services............................................................................Mark Ilderton Apple Services................................................................................................... Mike Jordan Hallmark Homes International, Inc............................................................. Dan Kingsbury South Tech Systems.............................................................................................. Tim Krese Sycamore Development, LLC......................................................................... Michael Letts Lindler Construction, Co., Inc............................................................................ Ben Lindler Quality Builders Warranty............................................................................J.M. Olsbefski Sycamore Development, LLC........................................................................ Patrick Palmer Capogrossi Construction, Inc.......................................................................Tiffany Phillips F. J. Rabon Construction Co., Inc....................................................................... Ben Rabon Exquisite Design Cabinetry, LLC......................................................................Ray Stevens Bouknight Pumps, LLC.......................................................................... David Bouknight, Jr. Concrete Services of the Midlands...........................................................Don Brasington Haynsworth Sinkler Boyd, PA..........................................................................Jay Bressler Carolina Sunrooms, Inc...................................................................................Dennis Bright Midland Mortgage Corporation.......................................................................Jeb Buckner Russell & Jeffcoat Realtors, Inc..................................................................Megan Dooley Russell & Jeffcoat Realtors, Inc..................................................................Lynwood Duke Chrysanthemum Properties, LLC................................................................. Daniel Elmaleh Thomas G. Eppink Law................................................................................. Thomas Eppink State Farm Insurance.........................................................................................Bobby Fuller Prudential Midlands Real Estate...................................................................Kathy Garrick Hook Contracting, LLC....................................................................................... Jamie Hook Three Rivers Custom Homes.................................................................... Scott Hydrick, Jr. South Carolina Builder Journal • 2008 • www.hbaofsc.com SCBJ 08v1n2.indd 28 4/2/08 11:06:40 AM H A EC Th Cl Ev Pu Th Th M W Pe M Sy H Co B Sp U Ce Pe Th D Fa Sc Ry L& Pa G A Ea B D H A St M A A B Ke Cl H Pr YR A Ci B Pr N Ta Su TS D N Cl Ja Ru Sp Cl N Cl M 3 Ra St St So Re D ey es ks on ps ap ey ry bs ub es an es ett ns ss ur ta or all Jr. ell Jr. es ck er ell er pp on as on ps er on m ny ng al ds ou as on on le ic on th on an ry se ts er ki er ps on ns Jr. on er ht er ey ke eh nk er ck ok Jr. Pace Engineering Consul, Inc........................................................................ Gerald Lonon McCullough Residential & Commercial Svcs........................... Leonard McCullough, Jr. Keller Williams Realty...................................................................................Luther Reeves Prudential Midlands Real Estate.................................................................. Eileen Rumph Addy’s Harbor Dodge........................................................................................ Steve Sease All Pro Improvements, Inc..................................................................................Mac Smith Tally Ho Painting Services, LLC....................................................................Steven Styron Hallmark Homes International, Inc................................................................. David Tuttle HBA of the Greater Pee Dee Ashley Furniture Homestore........................................................................... John Broome ECK Supply Company........................................................................................... Dan Felker The Troika Group of the Carolinas, Inc................................................. Jonathan McLeod Classic Cabinets, Inc............................................................................................Liz Calcutt Evans Construction & Renovation...............................................................Kenneth Evans Putt for Dough Greens...................................................................................Marty Huggins The Granite Store........................................................................................... Gary Langston The Pool Store.................................................................................................... Jim Sanders Media Horizons, Inc....................................................................................... Barbara Taylor Wallace Housing, LLC.................................................................................. Tyrone Wallace Pee Dee Electric Coop, Inc........................................................................Kevin Hammond Mold Stoppers of Florence................................................................................Mike Jones Synovus Mortgage Corp...............................................................................Johnny Nexsen HBA of Greater Spartanburg Control Systems, Inc.......................................................................................Scott Clausen Blalock Properties, LLC.....................................................................................Kerry Comer Spartan Custom Cleaning Service, LLC......................................................Keyly Garrison Upstate Builders of Spartanburg, LLC.....................................................Steven Mccarter Century Concrete, LLC........................................................................................Randy Price Pella Window & Door, LLC.................................................................................... Jim Way The Clean Crue, Inc....................................................................................Renee Alexander David Alexander Woodworking, LLC.......................................................David Alexander Fastsigns Spartanburg..................................................................................Pete Brushaber Schumacher Homes of South Carolina......................................................Michael Johns Ryan Homes........................................................................................................ Lindsay Just L&S Renovations..........................................................................................Jimmy Laughter Patterson Construction, Inc.....................................................................Charles Patterson Greer State Bank.............................................................................................. Scott Presley Action Printing, Inc............................................................................................Shane Pruitt Earth Craft Development..................................................................................Cliff Walters Byana, LLC........................................................................................................ Brian Cantrell Dean & Dean Quality Construction...............................................................Charles Dean HBA of Greenville AAA FenceCrafters.................................................................................................Ron Allen Steamatic.............................................................................................................Clint Aycock Mallory K. Interiors........................................................................Susie Ballentine- Revere Advanced Sprayfoam Insulation.......................................................................Lynn Briley All in One Elite Drywall Services.......................................................................Rick Colon BetterBuilt Fence.................................................................................................... Phil Falls Keller Williams Realty............................................................................... Daniel Hamilton Cliffs Communities Custom Homes................................................................. Alan Hardin Homeowners Mortgage..................................................................................Frank Hilliard Prestige Marble.................................................................................................. Riddle John YRT2 Inc Your Residntial Technology Team................................................ Carl Johnson Action Signs & Designs.................................................................................Colleen Jones City of Greenville Building Codes...............................................................Steve Landrith Bonded Builders Warranty Corp.................................................................... John Lashley Pro Source, LLC..............................................................................................Groover Martin NaturaLawn of America.............................................................................. Michael Martin Taylors Window & Screen, Inc......................................................................Mark Nichols Sunstore Solar.....................................................................................................David Odell TSC - The Service Company.........................................................................Bob Oldenburg Duke Energy....................................................................................................Kelly Owensby Nitelites of the Carolina’s........................................................................... Brandon Powell Cliff’s Communities..........................................................................................Jessica Quinn James Revis.......................................................................................................James Revis Russell Custom Home Builders, LLC..........................................................Bradley Russell Specialty Wood Products.................................................................................Lucas Shaw Clark’s Home & Construction Solutions.........................................................Alan Wilson Nitelites of the Carolina’s...................................................................................Rober Blair Cliffs Communities Custom Homes...............................................................Peter Luciano McCoy Builders, LLC.......................................................................................James McCoy 3 D Land Surveying, Inc...................................................................................David Modny Ray’s Haus Architectural Products..............................................................Ray Mosteller Stone Interiors, LLC...............................................................................................Yoki Pohar Strange Bros Grading Co............................................................................ Tommy Strange Southern Cultured Marble, Inc...................................................................William Bishop ReMax Realty Professionals........................................................................ Patrick Bissett D & D Ford............................................................................................................ Ted Blanton Gale Contractor Services....................................................................................Steve Click ARC Builders, Inc............................................................................................Michael Cloys Covington/Tutman Holdings................................................................................ Steve Cole Champion Windows of Greenville.................................................................... Danny Coy Coldwell Banker Caine.......................................................................Annemarie DeFronzo E. Perry Edwards............................................................................................ Perry Edwards Prudential C. Dan Joyner........................................................................... Nelson Garrison Coldwell Banker Caine.............................................................................. Teddy Hendricks Blanchard Machinery......................................................................................... Ron Hunter Lawrence Building & Renovations......................................................Kimberly Lawrence Lazarus-Shouse Communities L.P..................................................................Brian Lazarus EM Squared Builders.......................................................................................... Eric Mathis BB&T...................................................................................................................Brad Medcalf Woodmark Homes...............................................................................................Scott Milks Home Team Pest Defense..................................................................................Todd Parker Custom Surfaces, Inc................................................................................... Bambi Simpson Northwest Mortgage Services.............................................................. Edward Sternberg Barric Custom Homes................................................................................ Barric Thompson Resort Custom Homes, LLC........................................................................... Matthew Vogt Arguedas Construction................................................................................Pedro Arguedas Carson Construction, LLC................................................................................ Steve Carson Consept Homes, LLC............................................................................................Kathie Eger The Improvement Company............................................................................. Jeff Hopkins James Sutton Homes, LLC..............................................................................James McVay Piedmont Natural Gas................................................................................. Richard Powers Circa, Inc.....................................................................................................Angelia Simmons Coronado Stone................................................................................................. Bob Wagner Coldwell Banker Caine........................................................................................Jet Willey HBA of Lancaster County Knights Electrical Co..................................................................................... Willard Knight Charles Amerson Masonry.......................................................................Charles Amerson LCI Lineberger Construction...........................................................................Will Hutchins Williams Electrical...................................................................................... Randy Williams Southern Pride Contractors.........................................................................Charles Lowery HBA of the Lowcountry Sunshine Mortgage Corporation.................................................................. Rebecca Bass 84 Lumber...................................................................................................................Rob Hall Homes & Land Magazine................................................................................... Kathy Jello I.P. Builders, Inc................................................................................................... Ian Padgett Grayco Buiding Center.............................................................................Leslie Alessandro Frank B. Norris & Company, Inc.................................................................. Nathan Bocock Gaster Lumber...................................................................................................John Boverby Brown’s Construction.....................................................................................Steven Brown Bundy Appraisal & Mgmt, Inc........................................................................Robert Bundy E.C. Masonry........................................................................................Emanual Calloway, Jr. Ted Clamp Builder.................................................................................................Ted Clamp Clements Construction................................................................................ John Clements D & B Stucco....................................................................................................Willie Deveau Creative Interiors............................................................................................William Dukes Gollihugh & Hull, Inc..................................................................................... Tom Gollihugh Grant Masonry.................................................................................................. Nelson Grant Concrete Placement Services..........................................................................Gina Halker Danny Harral Construction............................................................................. Danny Harral Low Country Habitat for Humanity......................................................................Jim Inlow Crossroads Const, Inc.................................................................................... William Janas Bargain Builder....................................................................................... Johnathan Kessler Terminix Service, Inc..........................................................................................David Knick Coastal Connections......................................................................................... Kevin Kowal Broad River Construction.......................................................................Patrick McMichael Owens Professional Painting Co..................................................................Edison Owens Patterson Constr Co.....................................................................................Steve Patterson Sauls Subcontracting.........................................................................................Eddie Sauls Gas Works Too, Inc........................................................................................... Mike Sewell Little Mansions................................................................................................... Clyde Smith Cregger Comany............................................................................................ Troy Villiquette Island Residential Construction....................................................................Steve Walker Beaufort Surveying.........................................................................................David Yomans Pingree & Wallace Properties................................................................ Judy Blankenship Energy One, LLC....................................................................................................Gary Bryan Vic’s Plumbing................................................................................................... Vic Campbell Tracy R Cleland Construction.........................................................................Tracy Cleland VC Tile................................................................................................................ Vincent Coats Creative Stone....................................................................................................... Kurt Fineis Lowcountry Insurance Services................................................................Frank Gibson, III Mitchell Brothers, Inc.................................................................................... Jane Hincher Calibogue Enterprises...................................................................................Robert Hughes Mullen Properties, Inc......................................................................................Scott Mullen Continued on page 30 www.hbaofsc.com • South Carolina Builder Journal • 2008 SCBJ 08v1n2.indd 29 29 4/2/08 11:07:04 AM 2008 New Members Salt Marsh Subcontractor........................................................................... Robert Murphy Inergy Propane.................................................................................................Mike Palermo Hargray Wireless/Long Distance..............................................................Jason Rockwell Waynes Painting Service..............................................................................Wayne Stegall Coastline Cabinetry................................................................................Courtney Congleton Communication Publishing Co....................................................................... Brent Cooper NBM Builders....................................................................................................Scott Dennis Ameris Bank..........................................................................................................Rick Green Butler Chrysler Dodge Jeep...........................................................................Garry Greene Sands Publishing Company............................................................................Pam Johnson Jones Consulting & Pest Service.................................................................... Craig Jones Martin Landscape, LLC....................................................................................Wade Martin Oliver’s Bushhogging, LLC........................................................................ Walter Oliver, Jr. Budget Blinds of Beaufort................................................................................Cindy Smith Carolina Air.................................................................................................. Frank Tuckwiller HBA of Oconee Talley Construction............................................................................................David Talley Froehling & Robertson, Inc........................................................................Deneen Hankins Mcginney Homes, LLC.......................................................................... Jonathan Mcginney Northwestern Supply, Inc.................................................................................Annie Smith Wells Fargo Home Mortgage............................................................................... Lanie Nix Gateway Supply Company...................................................................................... Bill Fitts Head Lee Nursery, Inc............................................................................................Bill Head First Savers Bank..............................................................................................Shane Smith HBA of Orangeburg-Bamberg-Calhoun Jimmy Baughman......................................................................................Jimmy Baughman Baughman Company.................................................................................Jimmy Baughman Low Country Construction, Inc.......................................................................Randy Brown Chavis Painting.................................................................................................. Ricky Chavis Amco Construction Company, Inc................................................................. James Evans Taylor Time, Inc.................................................................................................Ronald Taylor Southern Craftsman Construction...................................................................... Dan Ligon HBA of Sumter Clarendon Tindal Construction Company....................................................................... Sharon Tindal HBA of York County Eco Wash & Seal................................................................................................Dian Carnes Creative Custom Homes, Inc......................................................................... Michael Cohn Wingfoot Building Group, LLC........................................................................Chuck Hester T Griffin, Jr. Build It With Bri....................................................................................J. Pace Era Wilder Realty.......................................................................................... Judy Castorina Boral Bricks.......................................................................................................Faith Stegall Wachovia Mortgage..................................................................................Herbie Blackwell Wachovia Mortgage.........................................................................................Arthur Green Airtron Heating & Aircondition.....................................................................Heather Poole Hilton Head Area HBA Advanced Integrated Controls..................................................................Curtis Hubner, III Leafguard of Hilton Head/Savannah...............................................................Rusty Payne Preservation By Design, Ltd.................................................................... Patricia Strimpfel Decorative Concrete & Designe.............................................................Francine Feldman Runyon Architects & Associates S.E., LLC..................................................Daniel Ogden Contractors Depot, Inc...................................................................................Eric Opperman AllTel Communications...................................................................................Mark Puckett AAA Atlantic Overhead Door Co., Inc............................................................Mark Rogers On Time Maintenance & Painting...........................................................Rodolfo Sagahon Reel Screens SE..............................................................................................Eric Schoeppe JP Lang......................................................................................................... John-Paul White Palmetto Spray Foam Insulation, LLC.........................................................Brett Williams I*T*S Classics..................................................................................................Dino Calamari All My Sons Pest Control of Hilton Head dba Mosquito Nix.................. Eric De Weerd Intercept/All My Sons Moving & Storage.................................................. Eric De Weerd Grey Oaks Custom Homes................................................................................. Brian Dralle Sign D’ Sign.........................................................................................................Mitch Evans A & J Trim Carpentry, LLC.......................................................................Aloysio Figueiredo Coastal Pools & Fountains, Inc.................................................................Audrey Geoffroy Scott Development Corp................................................................................Scott Leiti, Sr. Great Southern Wood Preserving, Inc....................................................... Russell Mathis Landmark 24 Homes.................................................................................. Cindy McPherson Builders Wholesale Carpet...........................................................................Scott Peurifoy MAS Construction, LLC.....................................................................................Jeff Schubat Bartlett Tree Experts........................................................................................... John Snow 30 K S McRorie Interior Design.......................................................................Kelley McRorie American Paving Design Inc........................................................................... Tim Niemiec Precision Granite & Marble........................................................................Brian Sylvester OneWorld Sustainable......................................................................................... Bill Traver Lowcountry National Bank...........................................................................Sheree Woods Carolina Oak Homes......................................................................................... Chris Wright R Continued from page 29 Horry-Georgetown HBA Centex Homes...................................................................................................... Ken Balogh Bank of America Mortgage............................................................................... Ellen Fields Suntrust Mortgage......................................................................................... Doug Roderick White Interior Specialties, Inc........................................................................... Bill White Exceptional Homes, LLC.................................................................................. Tom Womble Francisco Masonry....................................................................................Francisco Barrios Derrick Blanton Construction, Inc.............................................................Derrick Blanton Coastal Construction Group, LLC...................................................................Ralph Bussey Clayton Carpet Co........................................................................................... Bobby Clayton KO Construction..................................................................................................James Cook Sterling Properties & Investments, Inc........................................................ Russ Dziubak Re-Builders, Inc...................................................................................................... Ray Floyd Howell Homes, Inc........................................................................................ Mickey Howell 84 Lumber Co # 2410 MyrtleBeach.....................................................................Nick Kniat Manna Custom Builders, Inc......................................................................... Ronald Labrie Trotter Lanford Construction Co.....................................................................Lee F Lanford Carolina Home Exteriors..........................................................................................Bob Lee Southern Home Designs.......................................................................................... Tom Lee Palmetto Vinyl Fence....................................................................................Patrick Lendrim Conway Ford, Inc.................................................................................... Geramie Livingston Custom Theater & Audio.................................................................................... Allen Ryals Claremont Companies.................................................................................. Brian Sciaretta Coastal Interior Solutions...............................................................................Alan Stadiem Quality Landscaping & Patios..................................................................Mike Stollenmier Carolus Real Estate......................................................................................... Paxton Tucker Coastal Transformations....................................................................... Ken van Heyningen Wagner Brothers Cabinetry........................................................................... Scott Wagner Don Watford Waterproofing, Inc......................................................... Gordon Watford, Jr. Progress Builders...........................................................................................Michael Allard Cartrette/CFO Magnolia, LLC.................................................................. A.Myles Cartrette Elevator Sales & Service.............................................................................Francis Chester Douglas Company........................................................................................... David Douglas Florida Tile Industries..........................................................................................Chad Faust Ram Jack of SC............................................................................................Elwood Hackney Bradford Meadows, LLC.............................................................................. Scott Harrelson Caldwell Pools, Inc........................................................................................ Wanda Harvin Holly H. Kaufmann................................................................................... Holly H. Kaufmann Ken Moore Constr, Inc................................................................................. Kenneth Moore Mold Stoppers.......................................................................................................Bill Murray Millennium Const & Dev................................................................................Cornell Patton Lakeside Crossing, LLC.................................................................................... Paul Quigley Impressive Concrete, Inc.................................................................................... Tom Baher Hunter Brown Development..........................................................................Hunter Brown Stone Setters....................................................................................................... Nina Brown The Home Group.................................................................................................Dan Colomb Steve Fournier Custom Bldg, Inc................................................................. Steve Fournier Richmond Homes Const Corp.......................................................................... James Frank Well Built Homes of MI, LLC...............................................................................Linda Kiser Carolina Shoreline Builders.............................................................................Todd Moose Garden City Furniture.......................................................................................... Dianne Ray Mainstay Building & Development..................................................................... Dan Roys Silver Companies.........................................................................................Anthony J. Sala Coastal Custom Homes................................................................................Chad Schraeder Lakelands HBA Exit Realty of Greenwood, Inc..................................................................... John Gillespie The Gutter Carpenters............................................................................ Micheal Carpenter Panagakos Asphalt Paving........................................................................... Mike Pinckney Landmark Home Builders, Inc...................................................................... Ronnie Powell Laurens-Newberry HBA LCB Construction, LLC.................................................................................... Charlie Banks Bolands Erosion Control...............................................................................Wayne Boland Adams Building Supplies........................................................................ Lawrence Nelson Attention to Details, LLC.................................................................................... Ralph Snow Elite Tile, LLC.........................................................................................Jason Webster SCBJ South Carolina Builder Journal • 2008 • www.hbaofsc.com SCBJ 08v1n2.indd 30 4/2/08 11:07:35 AM SBS-109_So gh ds ck te le os on ey on ok ak yd ell at ie rd ee ee m on ls ta m er er en er Jr. rd te er as st ey on in nn re ay on ey er wn wn mb er nk er se ay ys la er Re a g Is nd ist No Ho rat w us ion Op in en g ! ie ec er er ds ht For complete details, please visit www.southernbuildingshow.com 15th Annual Southern Building Show & Conference June 11–13, 2008 Cobb Galleria Centre Atlanta, Georgia : 08 0 2 n i New Green isle A Buildinngd a vilion a P h c e T on Show Floor! Sponsored by: ie er ey ell ks nd on w BJ SCBJ 08v1n2.indd 31 SBS-109_SouthCarolina_ad.indd 1 4/2/08 11:07:41 AM 3/27/08 5:03:55 PM ÅÅÅÅ ÅÅ Consumers want green. It’s hard to imagine and A/C units by absorbing and releasing a building material greener than brick. thermal energy. And brick is resistant to mold, Conservatively, it provides a 100-year lifespan mildew and fungus, so interior walls made of with virtually no maintenance. That’s durability. brick let people breathe easier. Which is green. It’s made from clay, one of the Brick. The material that’s good for the Earth most abundant raw materials on Earth. Green because it is the Earth. Consumers are going again. And it’s 100% recyclable, whether intact green. And so should you. To get or crushed. Very green. more information and the free DVD, Don’t forget energy efficiency and indoor Brick Masonry Techniques for Builders, call air quality. It helps take the burden off furnaces 1-888-62-BRICK, or visit gobricksoutheast.com. Clay Brick – The Most Sustainable Green Building Material Made. SCBJ 08v1n2.indd 32 BSE-0042-11 Green Builder-BJsc.indd 1 4/2/08 11:07:45 AM 2/29/08 10:38:35 AM
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