The Nail - April, 2014

April, 2014 l The NAIL 1

2 The NAIL l April, 2014

The official magazine ofHome Builders Association

of Middle Tennessee

PresidentMichael Dillon

Vice PresidentTrey Lewis

Secretary/TreasurerRandall Smith

Executive Vice PresidentJohn Sheley

Editor and DesignerJim Argo

StaffConnie NicleyPat Newsome

THE NAIL is published monthly by theHome Builders Association of MiddleTennessee, a non-profit trade associationdedicated to promoting the Americandream of homeownership to all residents of Middle Tennessee.

SUBMISSIONS: THE NAIL welcomesmanuscripts and photos related to theMiddle Tennessee housing industry forpublication. Editor reserves the right toedit due to content and space limitations.

POSTMASTER: Please send addresschanges to: HBAMT, 9007 OverlookBoulevard, Brentwood, TN 37027.Phone: (615) 377-1055.

THE

NAIL

April, 2014 l The NAIL 3

FEATURES

7How to Handle a Complaint

by BRANDT MCMILLANHow to Handle a Complaint Filed with the Tennessee Board for Licensing Contractors.

8Spring Membership Mixer at

Kings’ ChapelThe HBAMT’s Spring Membership Mixer was held last month at the Kings’ Chapel

Clubhouse in Arrington, Tenn.

DEPARTMENTS

4News & Information

11SPIKE Club Report

12April Calendar

12Chapters and Councils

ON THE COVER:April is National New Homes Month. Check

out the top reasons that the time to buy is now on page five.

4 The NAIL l April, 2014

NEws&INfo

New home sales continue to trend flat in February

The first two-month average of 2014 is in line with where 2013 left off - we would be ahead of last year’s pace if not for the unusual weather.

Metro/Nashville Chapter President John Whita-ker talks with guest speaker Kristin Eastman from TNMedia prior to the chapter’s March meeting. Eastman delivered a presentation on the various ways you can use social media to your advantage.

Guest speaker Steve Lavelle from Verizon Wireless outlines beneficial communication tools during the March meeting of the Remod-eler’s Council at the HBAMT offices.

Mortgage expert Tonya Esquibel from Summit Funding and tax expert Dr. Friday delivered a presentation about “Diagnosing Your Purchas-ing Power” during the Sales and Marketing Council’s February meeting. Special thanks to Piedmont Natural gas for sponsoring the meeting.

Sales of newly built, single-family homes fell 3.3 percent to a seasonally adjusted annual rate of 440,000 units in Febru-

ary, according to newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

“There is no doubt that the persistently bad weather took a toll on sales in February,” said Kevin Kelly, chairman of the Nation-al Association of Home Builders (NAHB) and a home builder from Wilmington, Del. “However, builders continued to increase

their inventory of for-sale homes, indicating they still anticipate a relatively strong spring buying season.”

“We still expect 2014 will be a strong year for housing,” said NAHB Chief Economist David Crowe. “The first two-month average of 2014 is exactly in line with where 2013 left off. If not for the unusual weather, we would easily be ahead of last year’s pace. We also continue to see household formations and pent-up demand driving sales forward.”

Regionally, new-home sales activity fell 32.4 percent in the weather-battered North-east, 1.5 percent in the South and 15.9 per-cent in the West. The Midwest posted a gain of 36.7 percent, stemming from an unusually low January figure.

The inventory of new homes rose to 189,000 units in February, a 5.2 month supply at the current sales pace. n

April, 2014 l The NAIL 5

Nationwide housing starts were virtually unchanged in February, inching down 0.2 percent to a seasonally adjusted an-

nual rate of 907,000 units, according to data from the U.S. Department of Housing and Ur-ban Development and U.S. Census Bureau.

“Continuing the January trend and in line with our recent surveys, builders are in a holding pattern. Poor weather is keeping many from getting into the field and they continue to face challenges related to a shortage of lots and labor,” said Kevin Kel-ly, chairman of the NAHB.

“While housing construction is in a recent lull due to unusual weather conditions, we expect to see an improvement as the winter weather pattern subsides and builders prepare for the spring selling season,” said NAHB Chief Economist David Crowe. “Competitive mortgage rates, affordable home prices and an improving economy all point to a continu-ing, gradual strengthening of housing activity through the rest of the year. Moreover, building permits, which are less dependent on weather and are a harbinger of future building activity,

rose above 1 million units in February.”Single-family housing construction rose 0.3

percent in February to a seasonally adjusted an-nual rate of 583,000 units while multifamily starts edged 2.5 percent lower to a 312,000-unit pace.

Regionally, combined housing starts activ-ity was mixed in the month, posting gains of 34.5 percent in the Midwest and 7.3 percent in the South and declines of 37.5 percent in the Northeast and 5.5 percent in the West.

Issuance of new building permits rose 7.7 percent to a seasonally adjusted annual rate of 1.02 million units in February. Single-family permits edged down 1.8 percent to 588,000 units and multifamily permits rose 27.6 percent to 407,000 units. Regionally, overall permits rose 6.3 percent in the Northeast, 9.9 percent in the South and 17.9 percent in the West but declined 11.8 percent in the Midwest.

Builder confidence treads waterBuilder confidence in the market for newly-built, single-family homes rose one point to 47 on the most recent National Association of Home Build-ers/Wells Fargo Housing Market Index (HMI).

“The March HMI mirrors last month’s sen-timent, as builders continued to be affected by poor weather and difficulties in finding lots and labor,” said Kelly, a home builder and developer from Wilmington, Del.

“A number of factors are raising builder concerns over meeting demand for the spring buying season,” said Crowe. “These include a shortage of buildable lots and skilled workers, rising materials prices and an extremely low in-ventory of new homes for sale.”

The index’s components were mixed in March. The component gauging current sales conditions rose one point to 52 and the component measuring buyer traffic in-creased two points to 33. The component gauging sales expectations in the next six months fell one point to 53.

The three-month moving averages for re-gional HMI scores all fell in March. The Northeast dropped three points to 35, the Mid-west fell three points to 53, the South posted a four-point decline to 49 and the West regis-tered a two-point drop to 61.

Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com. n

Housing starts hold steady in February

Top reasons you shouldn’t wait to buy a new home April is New Homes Month. With that in mind, here are the top reasons you shouldn’t wait to buy a new home.

Energy Efficiency.New homes have the latest environmentally-friendly, cost-saving, advanced technology materials and appliances. Safety.New homes are built with the latest materials, have passed inspections and conform to current building codes. Move-In Ready.Choose your own flooring, finishes, appliances and colors. Who wants to spend time changing someone else’s tastes?

Low Interest Rates.Rates remain at near-record lows; lock in a payment that

fits your budget.

Available Loans.Lenders are eager to loan to borrowers with good credit. Great Selection.With many homes to choose from on the market, get the features you want! It’s Your Home.It’s more than a house—it’s a place to raise your family, build a sense of pride, make memories and call your own. n

6 The NAIL l April, 2014

NEws&INfo

Legislative issues discussed during “hill” visits

During New Homes Month in April, the National Association of Home Build-ers (NAHB) is sharing with home

buyers the most popular features in new single-family homes in 2014. Builders from across the country were surveyed on what features they were most likely to include in a typical single-family home this year, reveal-ing that convenience, livability and energy efficiency are top priorities.

“Newly constructed homes can suit the specific requirements of today’s home buyers,” said NAHB Chairman Kevin Kelly. “And now is a great time to consid-er buying a new home, as consumers can take advantage of competitive home pric-es and low interest rates to find the perfect new home for their families.”

Home builders are including fea-tures that are practical and functional for the daily lives of today’s home buy-ers. The features that are most likely to

be included in a typical single-family home this year are:

v a walk-in closet in the master bedroomv low-e windowsv a laundry roomv a great room

Energy efficiency is a key theme with Energy-Star rated appliances, program-mable thermostats and Energy-Star rat-ed windows at the top of the list. These features help make the home more com-fortable and can save the home owner sig-nificant money over the long term. On a median per square-foot basis, home own-ers spent 78 cents per square foot per year on electricity, while owners of new homes spent 65 cents per square foot per year, ac-cording to data from the 2009 American Housing Survey (AHS).

Builders also list features such as

granite countertops, a double sink and a central island as winning elements in new-home kitchens, and a linen clos-et and a private toilet in the bathroom. Additional features likely to be included throughout the home include first-floor ceilings at least nine-feet high, a front porch, outdoor lighting and a patio.

Home buyers can access home buy-ing and home building information and resources on NAHB’s website at nahb.org/forconsumers. n

NAHB reveals most popular features found in new homes

In response to an NAHB request, the HBAMT met with local representatives one-on-one in more intimate settings in lieu of waiting for the Spring Board meetings. These meetings included audiences with, as shown: at right; Con-gressman Marsha Blackburn; lower right; Congressman Diane Black; and below; Congressman Jim Cooper. n

April, 2014 l The NAIL 7

Handling a complaint

It’s upsetting when a certified letter arrives from the Tennessee Board for Licensing Contractors informing you that one of your customers has lodged a

complaint. It is even more unnerving if you have never been through the process before. Take heart though, unless your situation is extreme, it is unlikely that you are going to lose your Tennessee contractor’s license. In fact, with a good response, it is possible that the complaint will be dismissed without any action taken against you.

In 2013, the Tennessee Board for Licensing Contractors (“the Board”) issued formal disci-plinary action in 96 cases, and only 2 contrac-tors had their licenses revoked. There were also 6 instances last year where contractors volun-tarily surrendered their licenses, and one con-tractor had his license suspended for a year. In all other disciplinary cases, the contractor was fined in an amount generally between $250 and $5,000; the average fine in 2013 was $2,258.48. However, the largest fine in 2013 was $456,000, which was assessed against the same contrac-tor twice. That contractor was also one of the two whose license was revoked. This six-figure fine was excluded from the calculation to get the $2,258.48 average because it is unusual for such a large fine to be issued. In fact, there were only 4 fines over $5,000 issued in 2013.

The worst reaction you can have to that let-ter is throw it in a stack of papers to deal with later. You will only have 10 days to respond with an affidavit setting out your position. So, you need to take immediate action and demon-strate to the Board that you are taking the com-plaint seriously and intend to fully cooperate in the process. If you are going to hire an attorney to represent you before the Board, call them straight away so there will be enough time to put together a thoughtful response.

Carefully read each factual allegation that the complainant has made against you. If there are numerous allegations (e.g., that you did not finish the project on schedule; you were rude to the customer; there was one unfixed nail pop in a closet; and you required a 75% deposit) you want to identify those allegations that could possibly result in disciplinary action taken against you. In the above example, you would want to provide simple explanations for the alleged rudeness and nail pop, and focus on the alleged late finish to the project and high deposit amount because the latter two could re-sult in discipline. Any documentation you have showing that the claims are inaccurate will be very valuable, so this is one instance where good record keeping could be a big benefit.

Engaging in unlicensed activity is far and away the most common violation for which

contractors are disciplined; it was the reason for Board action in 60% of 2013 cases. The following are the top ten licensure viola-tions that resulted in discipline in 2013: (1) engaging in unlicensed activity; (2) exceeding the monetary limit; (3) incompetency; (4) en-gaging in misconduct; (5) failing to complete or abandoning a project; (6) supplying false evidence on a license application; (7) fraud; (8) failure to comply with codes; (9) receiv-ing an excessive deposit; and (10) a felony conviction.

No matter what the allegations are, you want to put forward the best response you can, because even though statistics show it is unlikely you are going to lose your license as a result of a Board complaint, you do not want to be fined and end up in the “Dis-ciplinary Action Archives” that the Board maintains at http://www.tn.gov/regboards/ar-chive.shtml. If a potential customer or lender searches the internet for your company, the last thing you want them to find is a govern-ment report showing that a fine was levied against you in the past. n

Brandt McMillan is an attorney with Tune, Entrekin & White, P.C. in Nashville. He represents businesses and individuals on many civil litigation issues, including legal problems affecting Tennessee contractors and home builders. He can be reached at (615) 244-2770, or at [email protected].

How to Handle a Complaint Filed with the Tennessee Board for Licensing Contractors.

BY BrandT MCMiLLan

8 The NAIL l April, 2014

Spring Mixer!HBAMT Membership Mixer at Kings’ Chapel fun for all.

The 2014 Spring Membership Mixer was a big hit with association mem-bers last month. Held at the Kings’ Chapel Clubhouse, the festive event

drew nearly 200 attendees who were treated to great music, delicious food and a variety of tasty drinks available at the open bars.

Special thanks to Chazz Williams and his “smooth sax,” Kings’ Chapel Chef Brian Cochrane and the clubhouse staff, Mem-bership Chairman Trey Lewis, the HBAMT membership committee, and Liz Ross for capturing much of the evening in all of the photos shown here.

And of course a big, big thanks to all our event sponsors, including: Drees Homes, Ashton Real Estate Group, First Community Mortgage, Kings’ Chapel, Regions Mortgage, Tennessee Title Services, LLC, TNMedia, Trus Joist, and Wells Fargo Mortgage. n

An early shot of the delectable spread prepared by Chef Brian Cochrane.

Seth Douthett, Darin Cunningham, Cecilia Davis, Jared Prichard and Christina Cunningham.

April, 2014 l The NAIL 9

Our host John Powell, Membership Chairman Trey Lewis & Charles Jeter. HBAMT President Mike Dillon with Jim Ford.

Sam Carbine and Mitzi Spann. Sandra Prince, Brandon Wise and Denis Rochat.

Mandy Smith and Kasey King. Jody Derrick and Derenda Sircy.

10 The NAIL l April, 2014

James Carbine.Danny and Tonya Esquibel.

Jim Ford.

Marabeth Poole and Marty Maitland.Chazz Williams.

April, 2014 l The NAIL 11

Sixteen SPIKES (in bold) increased their recruitmentnumbers last month. What is a SPIKE? SPIKES recruit new members and help the association retain members. Here is the latest SPIKE report as of February 28, 2014.

Top 20 Big Spikes

Jim Ford 912Virgil Ray 819Bill King 776Mitzi Spann 667Jim Fischer 566Terry Cobb 565John Whitaker 375James Carbine 331Jennifer Earnest 321Dan Stern 306Bruce Hancock 297Kevin Hale 286Tonya Jones 271Reese Smith III 259David Crane 237Steve Moody 219Sonny Shackelford 216Michael Apple 185Cyril Evers 181Davis Lamb 180

Life Spikes

Jackson Downey 174Tim Ferguson 165Jim McLean 164Louise Stark 163Harry Johnson 146Steve Cates 140C.W. Bartlett 138Trey Lewis 133Tonya Alexander 126Steve Hewlett 119Tom Kelley 115Sam Carbine 112James Franks 106Carmen Butner 105Johnny Watson 101Dave McGowan 99Bill Kottas 97B.J. Hanson 96Lee Santiago 95Kim Dykes 89Jeff Zeitlin 87Duane Vanhook 83Jordan Clark 81Erin Richardson 76Randy Parker 75Jeff Slusher 70John Baugh 68Don Bruce 62Jim Ford, Jr. 62Wiggs Thompson 62Hill McAlister 57Joe Morgan 54Gerald Bucy 53John Broderick 52Beth Sturm 52David Hughes 48Al Davis 47

Sheila Rawlings 47Bernie Laine 46Greg Langley 46Benny Sullivan 46Kim Nichols 45Andrew Neuman 45Bryan Edwards 44Lori Fisk-Conners 44Kay Russell 44Peggy Krebs 39John Ganschow 37Chuck Clarkson 36Frank Miller 36Andy Wyatt 36Brad Butler 35David Lippe 35Al Hacker 34Ray Edwards 32Dan Strebel 32Steve Wheeley 30Alvin Basel 29Michael Dillon 26Matt Burnett 25

Spikes

Christina Cunningham 22Marty Maitland 17Jess Dillon 16Don Mahone 16Tracy Lomax 14Frank Tyree 11Pam Smith 10Don Alexander 8Derenda Sircy 8

sPIKE REPoRT

12 The NAIL l April, 2014

1 2 3Sales & Marketing Council meeting

4 5

6 7 8 9 10Sales & Marketing Council meeting

11 12

13 14 15Williamson CountyChapter meeting

16HBAMT Remodelers

Council meeting

17 18 19

20 21Dickson County Chapter meeting

22 23 24 25 26

27 28Metro/NashvilleChapter meeting

29 30 1 2 3

4 5 6 7 8 9 10

APRIL CALENdAR

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

CHAPTERS

CHEATHAM COUNTY CHAPTERChapter President - Roy Miles: 615/646-3303Cheatham County Chapter details are being planned.Next meeting: to be announced.Chapter RSVP Line: 615/377-9651, ext. 310

DICKSON COUNTY CHAPTERChapter President - Mark Denney: 615/446-2873.The Dickson County Chapter meets on the third Monday of the month, 12:00 p.m. at the Ponderosa Restaurant in Dickson.Next meeting: Monday, April 21Topic: to be announced. Price: FREE, lunch dutch treat.Chapter RSVP Line: 615/377-9651, ext. 307

MAURY COUNTY CHAPTERMaury County Chapter details are currently being planned.Next meeting: to be announced.Chapter RSVP line: 615-377-9651, ext. 312; for callers outside the 615 area code, 1-800-571-9995, ext. 312

METRO/NASHVILLE CHAPTERChapter President - John Whitaker: 615/843-3300.The Metro/Nashville Chapter meets on the fourth Monday of the month, 11:30 a.m. at the HBAMT offices.Next meeting: Monday, April 28.Topic: to be announced.Price: Builders Free pending sponsorship; $10 per person with RSVP ($20 w/o RSVP).Chapter RSVP Line: 615/377-9651, ext. 304

ROBERTSON COUNTY CHAPTER

Next meeting: to be announced.Robertson County RSVP line: 615-377-9651, ext. 313.

SUMNER COUNTY CHAPTERThe Sumner County Chapter meets on the fourth Tuesday of the month, 11:30 a.m. at the new Hendersonville Library.Next meeting: to be announced.Chapter RSVP Line: 615/377-9651, ext. 306

WILLIAMSON COUNTY CHAPTERChapter President - BJ Hanson: 615/884-4935.The Williamson County Chapter meets on the third Tuesday of the month, 11:30 a.m. at the HBAMT offices.Next meeting: Tuesday, April 15.Topic: Special guest Mark McMillen, Williamson County Building Codes Director.Price: Builders Free pending sponsorship; $10 per person with RSVP ($20 w/o RSVP).Chapter RSVP Line: 615/377-9651, ext. 305

WILSON COUNTY CHAPTERThe Wilson County Chapter meets on the second Thursday of the month, 11:30 a.m. at the Five Oaks Golf & Country Club in Lebanon.Next meeting: to be announced.Chapter RSVP Line: 615/377-9651, ext. 309

COUNCILS

CUSTOM BUILDERS COUNCILThe CBC meets on the second Tuesday of the month, 11:30 a.m. at the HBAMT offices.Next meeting: to be announced.Council RSVP Line: 615/377-9651, ext. 311

GREEN BUILDING COUNCILCouncil President - Erin Richardson: 615/883-8526.The Green Building Council meets on the fourth Wednesday of the month, 11:00 a.m.Next meeting: to be announced.Topic: to be announced.Price: free for Green Building Council members pending sponsorship; $20 for non-members with RSVP ($25 w/o).Council RSVP Line: 615/377-9651, ext. 308

HBAMT REMODELERS COUNCILCouncil President - Jason Broderick.The HBAMT Remodelers Council meets on the third Wednesday of the month, 11:00 a.m. at varying locations.Next meeting: Wednesday, April 16.Location: Henry Tile. Topic: to be announced.Price: free for RMC members with RSVP; $15 for non-members with RSVP ($20 w/o).Council RSVP Line: 615/377-9651, ext. 301

MIDDLE TENN SALES & MARKETING COUNCILCouncil President - Trey Lewis.The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices.Next meeting: Thursday, April 3. Topic: Special guest Michael Gass, founder of Fuel Lines, which has been rated among the top 100 marketing blogs in the world, according to Ad Age’s Power 150.Price: SMC members free thanks to our sponsors ($10 w/o RSVP); $20 for non-members with RSVP ($25 w/o).Council RSVP Line: 615/377-9651, ext. 302.

CHAPTERs & CouNCILs

April, 2014 l The NAIL 13

14 The NAIL l April, 2014