builders magazine - july/august 2010

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ALSO IN THIS ISSUE: Western Regional Water Commission Approves“2030 Sustainable Water Forecast” Hanging Tough in a Tough Market Local Homebuilder Debuts New Home Community

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Builders Magazine is A Regional HomeBuilding Publication That Reaches Top Business Executives, Industry Leaders and Elected Officials at the State, Local & Nat'l Level. Since 1988, Builders Magazine has been providing insight into the homebuilding industry including educating and advocating for a pro-building environment. Each issue profiles various issues that are pertinent to the home building industry, and acknowledges those individuals and companies that continue to advocate for the construction trade. Our unique distribution channels directly target buyers of building products and services. Available in print, online and our distinctive electronic magazine browser on the buildersmagazine.com website.

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Page 1: Builders Magazine - July/August 2010

ALSO IN THIS ISSUE: Western Regional Water Commission Approves“2030 Sustainable Water Forecast”Hanging Tough in a Tough Market Local Homebuilder Debuts New Home Community

Page 3: Builders Magazine - July/August 2010

The

BuildersM A G A Z I N E“The Voice of The Building Industry”

VOLUME 19 NUMBER 87

PUBLISHERPR Services, Inc.

dba The Builders Magazine

EDITORTeri Scharosch

PUBLISHER’S REPRESENTATIVEPatricia Ferguson

Rachelle Goodness

GENERAL MANAGERPatricia Ferguson

ART DIRECTORFelix Sanchez

ELECTRONIC PAGINATIONFelix Sanchez

Rachelle Goodness

COPY EDITORTeri Scharosch

STAFF WRITERSJoe Lopez, BANN PresidentMichael F. Dillon, Jr., BANN

Teri Scharosch, BANNBobbie Merrigan, BAC

Jess Traver P.E., Director of Government Affairs

CONTRIBUTING WRITERSGreg Peek, Nevada Build-PAC Trustee

Pete MoklerDwight Millard

ADVERTISING, PUBLISHING & EDITORIAL OFFICE The Builders Magazine

9080 Double Diamond Pkwy, Suite A,Reno, NV 89521

Phone: (775) 355-9288 Fax: (775) 355-9488Email: [email protected]

BANN 2010 BOARD OF DIRECTORSJoe Lopez, President Curtis Rowe, Vice PresidentPat Riley, Associate Vice President Bill Thomas, Secretary TreasurerJohn Brown Jack ByromJeff CodegaMike Douglas

Garret Gordon Dave Hendriks John Krmpotic

The Builders Magazine is published bi-monthly by PR Services, Inc., dba The Builders Magazine located at 9080 Double Diamond Pkwy. Suite A, Reno, Nevada 89521, bulk postage paid. The Builders Magazine is published in the interest of all segments of the build-ing industry and is distributed to Builders Association members in Nevada, the State Contractors Board mail list and others associated with the building industry on a complimentary basis.

Although every precaution is taken to ensure accu-racy of published material, neither PR Services, Inc., dba The Builders Magazine nor the Builders Associa-tion of Northern Nevada accept responsibility for any statements or claims made by advertisers or authors.Suggestions, ideas, letters and columns are wel- come, however, we cannot be held responsible for un-solicited contributions. Please send to: Teri Scharosch, The Builders Magazine, 9080 Double Diamond Pkwy., Suite A, Reno, Nevada 89521. All rights reserved. Reproduction in whole or part without written permis-sion is prohibited. ©2010 PR Services, Inc., dba The Builders Magazine.

Travis MeansRobert NielsenPam ParentiGreg PeekRay PezonellaCloyd PhillipsCurtis RoweSteve RyckeboschJohn SchroederJoe Serpa Randy Walter

Visit: www.BuildersMagazine.com 1

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Page 4: Builders Magazine - July/August 2010

TheBuildersM A G A Z I N E

contentsJULY-AUGUST 2010

Features

2 President’s Message by Joe Lopez, President, Builders Association of Northern Nevada

3 Cover: Chapter 40 Reform: An Industry Priority

5 “Fore!” Says It Best

6 As I See It: MGM Mirage Joins Coalition by Michael F. Dillon, Jr., Executive Director Builders Association of Northern Nevada

7 GIVING BACk: Playhouses 2010 by Bobbie Merrigan, Executive Director, Builders Association Charity

8 Builders Association of Northern Nevada Joins Healthy Tracks!

10 This Giving Won’t Hurt by Greg Peek, Nevada Build-PAC Trustee

11 Western Regional Water Commission Approves “2030 Sustainable Water Forecast” by Jess Traver, Director of Government Affairsf

11 Why Am I A BANN Member? by Raymond Pezonella, President Pezonella and Associates 12 Hanging Tough in a Tough Market

13 BANN Aids Industry With Lead Paint Certification Training

14 Builders Magazine Goes Digital!

15 BANN Welcomes New Members to the Most Effective Construction Trade Association in Nevada!

16 Local Homebuilder Debuts New Home Community

17 Across the Decades with a Solar Entrepreneur by Pete Mokler

18 Local Firms provide RESNET Energy Audits, BPI Building Analysis, and Retrofit Solutions

19 Back To Basics by Dwight Millard

20 Classified/Services Guide

Departments

president’smessage

by Joe Lopez,President, Builders Association of Northern Nevada

We all know it’s challenging enough out there these days without having to worry years later about homes we constructed in the past. Unfortunately, our industry knows first-hand one of the reasons why Nevada ranks among the highest of states for litigation—the increasing number of construction defect lawsuits under the provisions of Chapter 40 of the N.R.S. The Builders Association of Northern Nevada and its members support the reform goals of the Coalition for Fairness in Construction, comprised of a number of groups affiliated with the building business, including SNHBA and BANN, Associated General Contractors, the Nevada Subcontractors Association, and Associated Builders and Contractors. By working diligently in advance of the upcoming Legislative Session, the Coalition plans to effect meaningful reform to Chapter 40—the abuses simply cannot continue. You’ll find more on that effort in this issue…become aware, and prepare to get involved—your future will depend on it! To all of you who supported our most recent fundraiser—our Mini Golf Event at Wild Island, a huge “thank you!” I think that all who participated had a great time, and it was pure pleasure to see family groups enjoying a beautiful northern Nevada evening. Thanks to all of our golfers and sponsors…you make it happen! I hope we’ll see you on the links at D’Andrea Golf Club when we host “The Builders Give BACk” golf tournament, honoring our own Ray Pezonella, on July 17th. This will be the only 18-hole golfing event in 2010—make it memorable! Last but certainly not least, you’ll find information in this issue on another way that you can give back…by participating in the BUILD-PAC fundraiser at the Freight House District, followed by the Reno Aces vs. Las Vegas 51s on July 29th! BUILD-PAC funds are used by NAHB to support federal candidates who demonstrate an understanding of the needs of our industry. We all know firsthand how much our recovery will depend on federal legislation, including housing tax credits and lending reform. Please dig down deep…consider becoming a member of the “Dollar A Day” club—just $365 can make the difference in the success of your business. Join us.

Joe Lopez Tanamera Development

2 THE BUILDERS MAGAZINE / JULY-AUGUST 2010

Page 6: Builders Magazine - July/August 2010

4 THE BUILDERS MAGAZINE / JULY-AUGUST 2010

firms inspect their homes for construction issues. Just recently, we learned that attorneys from a new construction defect law firm in our area have gone door-to-door, encouraging participation in one of their suits, using fear tactics and inferring that problems they may have—or may yet discover—can worsen. As far as the benefit to the homeowners, our experience is that they are intimidated into pursuing litigation by the attorneys—that only benefits the attorneys. In a condominium case we are currently involved with, the lawyers obtained approval to inspect and litigate by requiring the homeowners vote to (1) litigate and have the builders pay for any repairs; or (2) vote not to litigate and be assessed for any required repairs. How do you think they voted? After costs of the suit and the lawyer’s contingency fee, our experience shows there is typically very little remaining for repairs. Additionally, it is our understanding that once a residence is involved in construction defect litigation, every owner of that residence needs to disclose to future buyers this litigation impairing the residence’s value. Most homeowners are unaware of this requirement. The plaintiffs “experts” hired by these firms are paid extremely well to produce reports claiming problems with a laundry list of items. In one suit we were involved with covering several structures, the settlement demand was $750,000. The defense expert our insurance carrier hired concluded that there was virtually nothing wrong, but fixing things that were marginal would cost about $16,000. Fearing to litigate on an uneven playing field, defense counsel went about rounding up money from subcontractors and wrote a big settlement check. Without a reasonable definition of what constitutes a “defect”, defending these cases is an uphill battle.

Darren Wilson: Chapter 40, since its inception, has done little to get repairs made. Most of the “de- fects” have little to do with real defects….they’re just plain maintenance issues. Remember that the attorneys are targeting homes that are 5-10 years old. The attorneys promise the homeowners a lot of money, while the lion’s share of the settlement goes to the guaranteed fees and costs. Unfortunately, our insurance costs are being detrimentally affected. They’re settling with these attorneys because they feel it’s cheaper to settle than go to court. It’s what these guys are counting on. There is rarely enough money left over to make the repair.

Q. What have you found to be your costs to defend against a Chapter 40 claim? Rowe: The costs are outrageous. In addition to needing to pay ongoing attorney’s fees and pulling our limited staff off of needed work to produce the voluminous amount of production paperwork required in these cases, we currently have one full time staff person within our office just to monitor and coordinate all of our cases. Cavallero: In addition to the settlement amounts previously mentioned, we have to inspect—or pay others to inspect—each home we’re involved with. We also have to use administrative staff time to copy files, send documents, attend mediations, speak and correspond with attorneys and insurance companies, and answer interrogatories. It’s time consuming and labor intensive. It’s challenging to quantify each case.

Wilson: The amount spent by the homebuilding industry in Nevada is immense. I have 2-3 people on staff at any given time just to handle the crush of claims we’re faced with as a large HVAC contractor in Las Vegas. We offer to make a repair if possible, only to be turned away by the plaintiff’s attorney. They don’t want a repair…they want to drive the money machine. Polish: We’ve spent thousands of dollars in labor costs, as well as my time and my attorney’s time. The result? No repairs made to date.

Q. Has Chapter 40 affected your ability to obtain liability insurance, or the cost of that insurance? Wilson: Premiums have risen out of control. What’s happened as a result of these out-of-control suits is that good companies have left the state and are no longer willing to write in Nevada. Those that are left have priced so high that it has caused many businesses to just close their doors. Also, the coverage that is offered tends to be of lesser quality. The homebuilding industry has been forced to go to Wrap Insurance programs (OCIP) to attain coverage for all subs they employ to build a home. It’s expensive and adds tremendously to the cost of a home. Rowe: Premiums are definitely on the rise as a result of the current legislation and insurance is tougher to obtain. With respect to high density for sale attached projects, without reform in our state, I expect insurance for these types of developments, if it even remains available, will become extremely scarce and even more expensive over time, greatly diminishing our states ability to provide this type of housing. It’s going to be important for insurance companies to get on board with the reform program and help stop the bleeding. We need to allow the contractors the right to repair “real defects” (not those fabricated or exaggerated by the law firms hired”experts”) BEFORE the attorneys get involved and generate fees that are sky high. Both the plaintiffs attorneys and defense attorneys are making huge fees under the current system and have an incentive to keep this lucrative niche as it stands today. Polish: Our premiums have stabilized somewhat after the big, 300% spike that occurred in 2002/2003. The problem we’re having now is that there are fewer companies available to quote us and our deductibles per occurrence are through the roof—about 3 – 5 times higher than last year. It’s a big commitment to take on,

As a result of an ongoing epidemic of costly and excessive construction defect lawsuits, the Coalition for Fairness in Construction was formed to discuss potential solutions for both the building industry and homeowners. The group’s executive committee is comprised of members representing the major contracting trade associations in Nevada. Additionally, representatives from the insurance industry are involved in an effort to resolve the problems associated with the availability of affordable contractor’s liability insurance. The Coalition will be seeking help from state lawmakers during the upcoming Legislative Session as it seeks to restore fair and equitable problem-resolution mechanisms for homeowners and builders to prevent costly and lengthy litigation.

ATTENTION!

Chapter 40 Forum - Tuesday, July 27th John Ascuaga’s Nugget - 11:00 a.m. – 1:00 p.m.

For details and reservations, call BANN at 775-329-4611

For more information on the industry’s efforts to re-form construction defect statutes, plan to attend the industry-wide Chapter 40 Forum in Reno!

Chapter 40 Reform Continued

Page 8: Builders Magazine - July/August 2010

6 THE BUILDERS MAGAZINE / JULY-AUGUST 2010

As I See Itby Michael F. Dillon, Jr., Executive DirectorBuilders Association of Northern Nevada

MGM Mirage Joins Coalition“Our company is the largest employer in the State of Nevada, the largest tax payer in the State of Nevada, and last year we were the largest builder of single family residences in the State of Nevada…and this law needs to change.” That was the strong message sent to Nevada Legislators on January 7, 2010 at the Aria Resort at City Center in Las Vegas by Jim Murren, Chairman of the Board and CEO of the MGM Mirage. Changing construction defect legislation will be the number one priority at the 2011 Legislative session beginning next year for the Builders Association of Northern Nevada (BANN), and is the primary and only focus of the Coalition for Fairness in Construction. The Coalition consists of the home builders organizations from the northern and the southern part of our state, the Associated General Contractors (AGC), Associated Builders and Contractors (ABC), and the Nevada Subcontractors Association from Southern Nevada. This addition of MGM Mirage as a member of the Coalition is a huge step for our efforts next year. MGM Mirage is a “THE” major player in Nevada politics, and having them on board is a major early win for the industry to effect change during the session. While BANN has been part of what we thought was a solution over the years, the current law is not working for our industry and we need to make immediate change. In the last session of the Nevada Legislature, two bills were passed out of the Nevada Senate by an almost unanimous vote, yet the bill did not even receive a hearing in the Nevada Assembly and died. BANN has been interviewing all candidates for elected office, and special attention has been given to this issue when talking to and supporting statewide candidates. In addition, the leadership of BANN has been involved with several meetings in southern Nevada to reach out to legislators in Clark County, showing a unified front at both ends of the state. The momentum for this issue is increasing, and it is felt that there is a real opportunity for change during the upcoming session. We have high hopes that reform will be accomplished. In northern Nevada, we are organizing a “Chapter 40 Forum” in which I encourage you to participate. We are confirming dates for our panel. Next year, we need our members to step up and be willing to lobby and testify at the next legislative session to share your experiences. Statewide, we are sending the same message to our Legislators and Governor Candidates:

1) Bring common sense to the definition of construction defect;

2) Provide that a claimant may recover attorneys fees and costs in the same fashion as provided in every other type of litigation in Nevada; and

3) Allow a reasonable and responsible time frame for bringing construction defect complaints.

To get involved with this issue please call Mike Dillon at BANN at 775-329-4611. n

Page 9: Builders Magazine - July/August 2010

GIVING BACk by Bobbie Merrigan, Executive Director, Builders Association Charity

Playhouses 2010

he ribbon cutting ceremony was held at 10:00am. Two wonderful playhouses are on display for a period of thirty days, and will be open for tours on weekends only between the hours of 10am and 6pm. Cost to tour is $1.00 per person or two cans of food benefitting the Food Bank of Northern Nevada. The playhouses will be located in the parking lot of “The Summit” between Starbucks and Hollister. They will be auctioned off, with the proceeds benefitting the Builders Association Charity as we continue to assist our community and local families struggling with adversity. These goals are accomplished through the funding of programs and services of BAC and other charitable organizations in our community. Bidding on the playhouses may be done on line at www.bacharity.org beginning June 19, 2010. The winning bidders will be determined at 4:00pm on Sunday July 18, 2010. “The resurrection of the “Playhouse” event is a victory for our charity and our community,” said Joe Lopez, the charity’s Immediate Past President. “In years past, it was our charity’s most successful fundraiser. In this economic climate, it is more important than ever that we bring it back. The money raised will insure our ability to continue to assist Northern Nevada children and families.” This year, ACE Charter High School* students built one of the two playhouses that will be featured at The Summit. The second playhouse, a collaboration of many Northern Nevada subcontractors and suppliers, has been a “labor of love” in support of our charity. Each of these generous contractors donated labor and/or materials to construct it: AB Custom Woodworks, Accent Windows, Action Electric, Artistic Fence, ASA Construction,

Caravan Camper Manufacturing, Construction Sealants & Supply, Creative Touch Interiors, Gale Insulation, Giraffe, Inc., H & E Framing, Holmes Construction, Intraform, Inc., J.R. Pierce Plumbing, MSM, Nevada Drywall Stucco and Stone, Paintin’ Place, Plygem Pacific Windows, Reno Lawn & Landscape, Reno Lumber, Reno Paint Mart, Signature Landscapes, Stodmeister Iron, Washoe Building Supply and Western Title Company. Special thanks to the generous sponsors of the “Playhouses 2010” event: Builders Magazine, Eagle Home Mortgage, ERGS, Inc., Lifestyle Homes, Tanamera Construction, TRC Homes and Western Title Company. For more information on Playhouses 2010 or the Builders Association Charity (BAC), contact Executive Director Bobbie Merrigan at 775-329-2424.

*The Academy for Career Education (ACE High School) is a free, comprehensive charter high school for 9th - 12th grade students that focuses on integrated core academics (reading, writing, math and science) through the application of skills utilized in the construction and engineering fields. The goal of ACE High School is for its graduates to pursue post-secondary training in any construction or engineering field ranging from project management and architecture to the trades including plumbing, electrician, carpentry, and diesel mechanics, as well as immediate employment. ACE High School is sponsored by the Washoe County School District and meets all the requirements established by the State of Nevada. It is accredited by the Northwest Association of Accredited Schools. For more information on ACE, contact the school at 775-324-3900. n

Visit: www.BuildersMagazine.com 7

The Builders Association Charity, in partnership with “The Summit”, hosted the grand opening of “Playhouses 2010” at The Summit on Saturday, June 19, 2010.

T

On display! Playhouses on Parade 2010 includes the fantasy castle on the right, a true team effort. The colorful playhouse on the left was constructed by students at ACE Charter High School, our construction charter school, who donated it for the Playhouse auction. You kids ROCK!

Zach & Scott McGrath of Washoe Building Supply are on site as the exterior of the Playhouse is constructed.

The project never would have been completed without the assistance our fabulous “Project: Playhouse” Committee!

On to stucco…special thanks to Jay Levine of Nevada Drywall, Stucco & Stone—they’ll turn your home into a castle, too!

Dennis Salsby of H & E Construction helped move the behemoth to its “show site”

Page 10: Builders Magazine - July/August 2010

8 THE BUILDERS MAGAZINE / JULY-AUGUST 2010

Some things just work better when they’re here.

Why go looking somewhere else for something that belongs in your own hometown? Your health

insurance provider should be here for you— here to answer your questions, here to give you advice

on physicians and facilities in your area, here to make life easier for you. Hometown Health is proud

to serve the needs of Nevadans. Competitive rates, the largest choice of physicians, a 24-hour,

7-day-a-week nurse’s hotline, flexible plan options and exceptional customer service are just some

of the great things you’ll find—right here in your own hometown.

Call your broker, contact us at 775.982.3100 or visit hometownhealth.com.

Starting October 1, 2010 BANN members who are employee subscribers in a Hometown Health Insurance Plan will have access to the Healthy Tracks program, brought to you by the Builders Association of Northern Nevada and Hometown Health.

This wellness program is designed to help you better understand your health, and provide you with tools and opportunities to enhance your well-being and improve your quality of life. Your participation in any activity is voluntary. This annual program runs for 12 consecutive months starting October 1, 2010. Throughout the year, you will have the opportunity to

participate in a variety of fun, health-promoting activities. By recording your participation online through the Healthy Tracks web site, you are able to track your progress and measure your improvement.

Here’s how it works: After October 1, 2010 login to the state of the art Healthy Tracks Website at www.myhealthytracks.com. The first time you will login with your Hometown Health Member ID# located on your insurance card and select Employee Member from the drop down list. Validate your information and create a personal account by setting a login and password of your choice. NOTE: You will login with your self-selected login and password for future program access. Listed on the next page are the activities that make up this program. You can choose which activities you want to do. By completing and recording the activity online, you will earn wellness credits. Most of the activities are available throughout the year, and challenge activities are offered during specific dates.

Your Goal. Research shows that people who set goals have a much better chance of success. To help you improve your health and well being, we challenge you to earn at least 24 Wellness Credits during the 12-month program cycle. Builders Association of Northern Nevada will be providing prize drawings for quarterly challenge completers, semi-annual screening participants, and for those completing a minimum of 24 points by September 2011! If you have questions about how Healthy Tracks is being applied, or more information about how you can participate, contact the Builders Association of Northern Nevada at 775-329-4611 or your Health and Wellness Coordinator at 775-982-6955.

Privacy Note: Your personal information is confidential and protected. No one from your company will see individual information.

Builders Association of Northern Nevada Joins Healthy Tracks!

START TODAY AND IMPROVE YOUR QUALITY OF LIFE.TOGETHER, WE CAN MAKE A DIFFERENCE.

WELLNESS ACTIVITIES & CREDIT DISTRIBUTION12 MONTH PROGRAM CYCLE

WELLNESS ACTIVITIES & CREDIT DISTRIBUTION 12 MONTH PROGRAM CYCLE

Program Activity CreditValue

AnnualMax

HEALTH AWARENESS Health Risk Assessment (required for program incentive) 6 6

PREVENTIVE CARE ACTIVITIES Biometrics Screening 5 5 Colorectal Screening 3 3 Pap Smear 3 3 Mammogram 3 3 Prostate Exam 3 3 Flu Shot / Preventive Immunization 3 3 Establish/Maintain Primary Care Physician 3 3

HEALTH & WELLNESS PROGRAMS Fitness Regimen 3x/wk x 12+ weeks (logged online) 2 2 Health Management Services 4 8 Health Coaching (telephonic and digital) 4 4 Healthy Living Programs (online) 3 9 On-Site Wellness Seminar 1 6 Monthly Seminars (online) 1 6

WELLNESS CHALLENGES Chill-Out Challenge (May 1 – 31) 4 4 Strive for Five Challenge (August 1 – 31) 4 4 Maintain Donʼt Gain Challenge (Nov. 1 – Dec. 15) 4 4 Commit to Get Fit Challenge (Feb. 1 – Mar. 15) 4 4

LOCAL WELLNESS ACTIVITIES Local Employer Activity 2 4 Community Event 2 4 Online Satisfaction Survey 2 2

Total Opportunity 90

START TODAY, AND IMPROVE YOUR QUALITY OF LIFE. TOGETHER, WE CAN MAKE A DIFFERENCE.

Page 11: Builders Magazine - July/August 2010

Some things just work better when they’re here.

Why go looking somewhere else for something that belongs in your own hometown? Your health

insurance provider should be here for you— here to answer your questions, here to give you advice

on physicians and facilities in your area, here to make life easier for you. Hometown Health is proud

to serve the needs of Nevadans. Competitive rates, the largest choice of physicians, a 24-hour,

7-day-a-week nurse’s hotline, flexible plan options and exceptional customer service are just some

of the great things you’ll find—right here in your own hometown.

Call your broker, contact us at 775.982.3100 or visit hometownhealth.com.

Page 12: Builders Magazine - July/August 2010
Page 13: Builders Magazine - July/August 2010

Visit: www.BuildersMagazine.com A

Page 16: Builders Magazine - July/August 2010

D THE BUILDERS MAGAZINE / JULY - AUGUST 2010

Page 17: Builders Magazine - July/August 2010

Visit: www.BuildersMagazine.com E

Page 18: Builders Magazine - July/August 2010

F THE BUILDERS MAGAZINE / JULY- AUGUST 2010

Who says screws and connectors don’t mix?

© 2010 Simpson Strong-Tie Company Inc. SDSCREW10

A new twist on fastening connectors. Introducing Strong-Drive® (SD)structural-connector screws. Our SD screws are specifically designed to performwith some of our most popular connectors. Why screws instead of nails? In tight spaces and overhead applications, screws are easier to install than nails and in some cases, achieve higher load ratings than 10d and 16d common nails. So we say, go ahead and mix our SD screws with our top-selling connectors.

Simpson Strong-Tie is expanding its line of fasteners. For a complete listof approved Simpson Strong-Tie® connectors for use with SD screws, visit www.strongtie.com/fasten or call (800) 999-5099.

Page 19: Builders Magazine - July/August 2010

Visit: www.BuildersMagazine.com G

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Transform sunlight in beautiful new ways with Hunter Douglas window shadings and sheers. Their intelligent design diffuses direct sunlight andallows a softer, more gentle light to fill each room. So you can create thedesired room ambiance and privacy that match your mood. It’s sheergenius. Come in and bask in exceptional savings, too.

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Page 21: Builders Magazine - July/August 2010

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Transform sunlight in beautiful new ways with Hunter Douglas window shadings and sheers. Their intelligent design diffuses direct sunlight andallows a softer, more gentle light to fill each room. So you can create thedesired room ambiance and privacy that match your mood. It’s sheergenius. Come in and bask in exceptional savings, too.

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Page 22: Builders Magazine - July/August 2010

J THE BUILDERS MAGAZINE / JULY - AUGUST 2010

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775.831.0793 • 530.546.2749

uniquely crafted showers & mirrors

Northern Nevada Housing Resource Board, a Reno-based non-profit, is pleased to announce the groundbreaking for Autumn Village Apartments, a new 43-unit affordable housing rental develop-ment being constructed on Gentry Way & Wrondel. Autumn Village Apartments is a Section 1602 Tax Credit Exchange funded afford-able housing project. The $9 million project will create an estimated 150 construction jobs over the next year. Financing for Autumn Village Apartments ($6.3 million) comes from the Nevada Housing Division: the American Recovery and Reinvestment Act of 2009 (ARRA) Section 1602 Tax Credit Exchange Pro-gram. Additional project funding comes from the Washoe County HOME Consor-tium, administered by the City of Reno, Schwab Bank, and Idaho-Nevada Commu-nity Development Financial Institution. The project was awarded Federal Low Income Housing Tax Credits by the Nevada Housing Division in the summer of 2008. However, the investor market for tax credits has plummeted in the last two years, another victim of the financial crisis. Under the ARRA Section 1602 Program, the Nevada Housing Division was able to “sell” these tax credits to the Treasury Department in exchange for cash to invest in high qual-ity and “shovel-ready” affordable housing projects. Without the Federal Stimulus funds administered by the Nevada Housing Division, it is unlikely that the Apartments would have moved forward this year. Autumn Village Apartments is planned as a three-story 43 unit, elevator residence with 21 one-bedroom and 22 two-bed-room, accessible/adaptable apartments with

balconies as well as community and service space. There are 9 Special Needs units in the project for housing homeless families in the community. Autumn Village is designed in an attractive Country style, covered walkways and decorative sighting and stucco exterior. Each apartment is equipped with FREE broadband internet access. The Community Building will include a lounge area, library, computer lab, on-site laundry facility, and offices for management and supportive service staff, security fenced

and landscaped grounds, courtyards, and porches. The property also has a children’s playground and BBQ area. Autumn Village Apartments is an affordable housing devel-opment. All of the units will be affordable to residents at or below 40% of area median income (AMI). The Apartments will be a certified Energy-Star-rated development. The building will include high efficiency heating and cooling equipment, and EnergyStar appliances. Au-tumn Village will have a solar panel array to assist the property in running “Green”. The development will also promote water conservation with xeriscape landscaping. Northern Nevada Community Housing Resource Board (NNCHRB) is a non-profit 501 c (3), established in 1989. It is NNCHRB’s mission to continue to provide

excellent means of high-quality living through developing affordable housing op-portunities for low-income individuals and families. To date, NNCHRB has sponsored the creation of 190 affordable rental units in 5 properties across Washoe County. One of NNCHRB’s properties (Joseph’s) house 31

homeless individuals and another property (Cottonwood Village – located 2.5 blocks from the Autumn Village site) house 44 low-income families, 9 of which are Sup-portive Housing Program (SHP) homeless families with permanent disabilities coupled with social service and case management support.

Autumn Village Apartments Development TeamDeveloper/Property Manager: Northern NV Community Housing Resource BoardDevelopment Consultant: Ann Harrington - Affordable Housing Consultant General ContractorQ&D Construction, Reno, NVArchitectBartlett Architecture, Inc., Reno, NV Civil EngineerHunter Creek EngineeringConstruction TestingPezonella Associates, Inc.Structural EngineerK2 Engineering and Structural Design

(For more information on Autumn Village Apart-ments, contact Ken Bartlett at Bartlett Architecture. He can be reached at 775.786.6688 or [email protected])

Another Job Comes to Life!

More than 100 Jobs were created by the

Autumn Village Apartments.

Autumn Village Apartments

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L THE BUILDERS MAGAZINE / JULY - AUGUST 2010

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Page 25: Builders Magazine - July/August 2010

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N THE BUILDERS MAGAZINE / JULY - AUGUST 2010

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P THE BUILDERS MAGAZINE / JULY - AUGUST 2010

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Page 31: Builders Magazine - July/August 2010

they were a year ago, they are still much lower than in 2006. The lumber and panel markets experience ups and downs and are subject to extreme changes in either direction. Pricing is dictated strictly by supply and demand, with all facets of the industry—from the builder demanding lower costs to the log suppliers and timber companies wanting higher returns—affecting the day to day profitability of the business. Buck Yaeger and Reno Lumber’s employees know that until the housing crisis subsides—meaning foreclosures and some oversupply are absorbed and the financial and unemployment numbers return to something closer to sustainability—then construction and related businesses will struggle. Although Reno Lumber has been able to maintain at this reduced pace, some of their customers have suffered deeply, and a few have had to close their companies. The remodeling business, hailed by some as the industry answer during these difficult times, has not really taken up the slack, as such a high percentage of homeowners are “upside down” and have negative equity. For many, it doesn’t make sense to remodel, as they are not really adding value. “I think Reno Lumber will work through this situation for the next couple of years, doing the best we can for our customers and our employees,” stated Yaeger. “Hopefully things will get a little better. In the meantime, we enjoy the business we have. We are happy and thankful to live in Northern Nevada, a great place with such promise and opportunity that ensures a bright future for the housing and construction industry. We are com-mitted to being part of that future.” n

BANN Aids Industry With Lead Paint Certification TrainingAlthough the EPA announced on June 18, 2010 that it will be delaying the enforcement of the Renovation, Repair and Painting Rule (commonly known as the RRP Rule or “lead paint training”) until October 1, 2010, the Builders Association of Northern Nevada, in partnership with Truckee Meadows Community College, will continue to work to train the building community on the provisions of the Rule. In the June 18th memo announcing the new enforcement date, the EPA Continued on next page

Visit: www.BuildersMagazine.com 13

Hanging Tough in a Tough Market

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Builders Magazine

It’s undeniable that technology is the wave of the future, and Builders Magazine is opening the door to new opportunities—Builders Magazine is going digital! Same content. Same design. Delivered via e-mail. Straight to your desktop. This new, digital format reduces space constraints so that we can provide more content to help you remain ahead of the pack with regard to construction-related issues, sales and marketing

recommendations, new technology, local trends and more, while at the same time providing you the best, most up-to-date information to help you do business. Going digital also means you will have direct access to Builders Magazine—no chance of issues being lost in the mail. If you don’t see Builders Magazine in your inbox, you’ll be able to access the magazine through a link on http://www.buildersmagazine.com. Builders Magazine will have state-of-the-art interactive features like video, flash animation and links to the products and services your business needs to grow and prosper. Best of all, Builders Magazine digital editions will be able to go wherever you go, as the new format is easy to read on an iPhone, Blackberry or other smartphone, and the iPad. Watch for it soon!

(Want to learn more about the benefits and advantages of being an advertiser in Builders Magazine? Contact Rachelle Goodness at 775-355-9288 or email [email protected]) n

14 THE BUILDERS MAGAZINE / JULY-AUGUST 2010

Goes Digital!

stated that “…Until October 1, 2010, EPA will not take enforcement action for violations of the RRP Rule’s firm certification requirement” and “…For violations of the RRP Rule’s renovation worker certification requirement, EPA will not enforce against individual renovation workers if the person has applied to enroll in, or has enrolled in, by not later than September 30, 2010, a certified renovator class to train contractors in practices necessary for compliance with final rules. Renovators must complete training by December 31, 2010.” A copy of the June 18th memo can be obtained by contacting the BANN office. The EPA certification is required of anyone working on pre-1978 houses where children may be present, and requires pre-construction notifications, testing, and mitigation procedures to prevent lead paint poisoning. Since the original April, 2010 implementation date, BANN has helped to certify dozens of remodelers, painters, HVAC subcontractors, window installers and others who may fall under the purview of the nationwide EPA regulation. For more information on the Lead Based Paint Certified Renovator Training or for a schedule of upcoming certification classes, contact Teri Scharosch at BANN at 775-329-4611 or visit www.thebuilders.com n

Lead Paint CertificationContinued

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Medical Insurance. Offered through Hometown Health, association members can save money through the power of our group—more than 10,000 strong! For more information, visit www.hometownhealth.com or call (775) 982-3100.

Cafeteria / Section 125 Plans. The Builders has partnered with JD Benefit Services to offer significant discounts for our members on Section 125 Tax Savings Plans and Supplemental Benefit Plans. Call (775) 337-1175 for more information.

Warranty Program. 2-10 Home Buyers Warranty provides a variety of solutions for home builders through an insurance-backed 10 yar structural warran-ty that helps define the builder’s legal liability. Contact Patricia Raymer at (916) 365-6192 for more information.

Advertising Solutions. Access the most pow-erful, successful & influential business people in No. Nevada. Your message reaches top business executives, industry leaders and elected officials at the national, state, and local governments. For more information, call (775) 355-9288 or visit www.BuildersMagazine.com

Workers Compensation. Available to associa-tion members only, First Comp can provide quali-fied companies with significant savings on their Worker’s Compensation. Call (888) 500-3344 for more information.

Corporate Wellness. The Gold’s Gym Corporate Membership Program is our partnership with busi-nesses across the country to answer the call for a comprehensive, cost-effective employee wellness program. Designed by top fitness profession-als, our program can be customized to meet the needs of your company and your employees to maximize health benefits AND cost savings. (775) 853-7373

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Visit: www.BuildersMagazine.com 15

7Q10 Lori Carpenter Reno, NV Ph: 775-828-1991 Mapping/GIS/Wetlands Delineations

Artistic Surfaces Michael Langton Reno, NV Ph: 775-544-5926 Decorative Concrete/Wallpaper

Boz Investment Group Michael Bozarth Genoa, NV Ph: 949-544-5269 Business Consultants

Buffo Electric Dave Buffo Gardnerville, NV Ph: 775-782-5555 Electrical Contractor Carvel Painting John Allen Reno, NV Ph: 775-313-6477 Painting Contractor Cedar Valley Concrete Corp Jason Hukill Rancho Cordova, CA Ph: 775-745-3944 Concrete Contractors D’Andrea Golf Club Michael Jory Sparks, NV Ph: 775-331-6363 Banquet Facilities/Golf Country Club Darby Law Practice Tricia Darby Reno, NV Ph: 775-322-1237 Attorney at Law

Eagle Home Mortgage Brian Havill Reno, NV Ph: 775-337-7600 Lending

Emser Tile Jeff Turk Reno, NV Ph: 775-786-1222 Tile Contractor Frame Architecture Jeff Frame Reno, NV Ph: 775-827-9977 Architect GW Pacific Builders Greg Wissenback Sparks, NV Ph: 775-355-9277 Builder Handyman Solution of Reno, LLC Kirby Fisher Reno, NV Ph: 775-771-4876 Remodeling High Ride, Inc. Michelle Smith Carson City, NV Ph: 775-883-0505 Insurance Intraform, Inc. Dave Sutherland Sparks, NV Ph: 775-359-5600 Printing/Web Design/Promotions Johnstone Reeves Ventures Jessica Johnstone Sparks, NV Ph: 775-560-0090 Excavating Kendra, Ltd Sandra Dillon Reno, NV Ph: 775-857-5757 Property Management Kodiak Roofing & Waterproofing Mark Nash Sparks, NV Ph: 916-253-1900 Roofing/Waterproofing Contractor

NAI Alliance Aaron West-Guillen Reno, NV Ph: 775-336-4600 Commercial Sales/Leasing Nevada Neighbors Kirk Bailey Reno, NV Ph: 775-762-1165 Publishing NV Solar Energy Andy Black Reno, NV Ph: 775-771-3935 Solar Sales Premier Landscaping Doug McKinnon Reno, NV Ph: 775-324-7588 Landscaping Design/Contracting Providence Electric, Inc. Allan Sisia Sparks, NV Ph: 775-356-9996 Electrical Contractors R C Willey Jon Jensen Reno, NV Ph: 775-337-4600 Furniture/Appliances Sierra Stone Fabrication Julie Foley Sparks, NV Ph: 775-359-2445 Tile/Stone Suppliers Tool Grinding & Supply, LLC Stacey Chance Mound House, NV Ph: 775-246-9080 Tool Suppliers Truckee Tahoe Lumber Company Andrew Cross Truckee, CA Ph: 530-582-5815 Lumber/Building Materials Utility Services of Nevada John Benedict Sacramento, CA Ph: 916-942-3488 Utility Contractors n

Please join us as we welcome these fine companies to the Builders Association of Northern Nevada (BANN)! Thanks to their support and that of our nearly 700 member companies, BANN remains a strong advocate for construction and housing issues. Whether you need construction education ranging from OSHA to Lead Paint Certification to Business Management, or whether you’re seeking networking opportunities or a forum at which you can make a difference, you’ll find what you’re looking for at BANN. If you are not already a member of BANN, take a moment to contact our offices to discover the many benefits—discounts on health, workers’ comp, liability insurance, education, legal assistance, advertising opportunities and networking—that you will enjoy when you’ve affiliated with the most professional and well-respected construction trade organization of its kind in Nevada. For more information, contact Patty Ferguson at 775-329-4611, or email [email protected]. We’d welcome your involvement!

BANN Welcomes New Members to the Most Effective Construction Trade Association in Nevada!

Proud Member of

The Builders

Page 34: Builders Magazine - July/August 2010

Local Homebuilder Debuts New Home Community New homebuilding activity of any type in the Truckee Meadows or northern Nevada in general is cause for excitement these days. Despite reports to the contrary, there is a buyer profile out there that’s seeking a new home—not a distressed, foreclosed or short sale property that may or may not need thousands of dollars in repairs to make habitable. These homebuyers are seeking what only a new home has to offer: that new home smell…pristine walls and floor coverings…reliable appliances…and a structure that’s not carrying the “ghosts” of owners past. Better Green Building Company and Fred Altmann are bringing just that to Reno with its new home community Panther Estates, which recently opened for sales. Featuring an entry level product that will incorporate numerous energy efficient features into each home, Panther Estates will eventually consist of 31 homes and three different floor plans, with sizes ranging from 1,461 to 1,740 square feet. “Our initial plan is to absorb 2 homes per month,” stated Darrin Indart of Better Green Building Company. “Although that can change depending on the market, we are confident that the product and pricing are appropriate for today’s market.” Like many new home communities in northern Nevada, Panther Estates was originally a casualty of the housing downturn and the drop in home prices. This circumstance led to a distressed position for the project, not dissimilar to most communities that were purchased or developed in the last five years. For Better Green Building Company, this was an opportunity to acquire finished lots at a price that would allow for building and selling homes in today’s market. One of the project’s most visible impacts is the fact that dozens of jobs will be created locally for construction workers, subcontractors and suppliers who have been hard-pressed to find business in the new home market. As Indart pointed out, “The associates in our organization are excited about having a new project to be part of, and we are optimistic about putting some people back to work.” National Association of Home Builders’ statistics have found that on average, each new home built creates the equivalent of three jobs for a year and generates about $90,000 in taxes paid to local and federal authorities. Resisting the impulse to be overly-optimistic in these challeng-ing times, Indart feels that the future holds opportunity for the industry. “In my opinion, companies that are patient, dili-

gent, and provide a high quality product—and can avoid the temptation to try to make a million in a week—will be successful.” As evidenced by the launch of Panther Better Green Building Company and its principals have been able to negotiate the regulatory maze as they sought to obtain financing for the project…a challenge that can be daunting. “It comes down to basic economics. Like any other business, at the end of the day revenues have to exceed expenses,” commented Indart. “In the homebuilding industry, that formula not only applies to the builder, but to the consumer who, in most cases, is borrowing money to finance the home purchase.” In northern Nevada, land values and construction costs are finally beginning to approach a level where homes can be built and sold to buyers who can legitimately afford a conventional mortgage. “As builders, we need to re-evaluate how we operate and do everything more efficiently. We’re all changing, but in some cases, that change is for the better.” n

16 THE BUILDERS MAGAZINE / JULY-AUGUST 2010

In northern Nevada, land values and construction costs are finally beginning to approach a level where homes can be built and sold to buyers who can legitimately afford a conventional mortgage. “As builders, we need to re-evaluate how we operate and do everything more efficiently.”

Page 36: Builders Magazine - July/August 2010

Your Source for Audits,Building Testing & Analysis, andRetrofit Solutions

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Page 37: Builders Magazine - July/August 2010

Local Firms provide RESNET Energy Audits, BPI Building Analysis, and Retrofit Solutions

Visit: www.BuildersMagazine.com 19

with the goal of showing Lisa what services could be provided to her as a “green realtor.” Never knowing what will be found when doing these audits, the auditors must keep an open mind, compiling all of the data and then putting it together, much like assembling a picture puzzle—eventually the picture becomes clear. In this case-study, you’ll learn of the processes, the testing measures, the visual inspections, what was found and the recommendations made—with the simple payback spelled out in a complete report. You can follow this story on Energy In-sight’s Facebook page. The Builders Magazine will also, from time to time, feature interviews with the Dunagans and the auditors. Be sure to check it out!

Brian and Lisa Dun-agan have a beauti-ful 1,900 square foot home on the west side of town. Leon Mills had contacted Brian and asked if he could do an energy audit on their home,

The Dunagan Report

30 years of construction experience. Paul became a certified RESNET/HERS Rater in 2009 and is a Building Performance Institute (BPI) Building Analyst Professional. In addition, Paul is an Energy Star Home Rater, Residential Building Inspector, and holds numerous special inspection certifications.) n

Safety and Training CommitteeCharged with developing programs that benefit members’ businesses and the need to emphasize a safe working environment, this committee also provides resources for training programs and regulatory compliance.Meets: Bi-monthly, 2nd Thursday at 7:00 am Staff Liaison: Jess Traver [email protected]

Energy & Conservation/Built Green Nevada Addresses the growing interest in green building and water conservation. Monitors and reviews other similar programs created and adopted in other states, particularly those with similar climate zones. Meets: 1st Monday of each month at 12 pm Staff Liaison: Jess Traver [email protected] Chair: Robb Wong, Guidenby

Codes/Infrastructure & Planning Monitors and oversees technical aspects of home construction. Reviews local land use, infrastructure and planning issues impacting development and construction. Monitors all 3 local building jurisdictions in Washoe County, as well as other agencies that impact the industry (TMWA, TRPA, RTC, Health Department). Meets: 2nd Monday of each month at 12 pm Staff Liaison: Jess Traver [email protected]: John Krmpotic, KLS Planning

Legislative Committee Keeps abreast of issues at state and federal levels that affect the construction industry. Reviews and takes action on bill drafts that affect our industry. Interviews candidates for public office at local and state levels. Meets: Tuesdays at 7:30 am or as called by Chair

Staff Liaison: Jess Traver [email protected] Chair: Greg Peek, ERGS

Membership Committee Works to recruit new members, retain current members, and develop member benefit programs. Events include Member-ship Drive, and General Membership Meetings. Meets: 1st Wednesday of each month at 12:00 pm Staff Liaison: Patty Ferguson [email protected] Chair: Michael Ellis, Reno Truss

Spike Club Recognizes and rewards association members who recruit new members. Members achieve Spike status by recruiting 6 new members to the association. Spike Club members act as official ambassadors to new association members. Meets: 1st Wednesday of each month at 12:00 pm Staff Liaison: Patty Ferguson [email protected] Chair: Ray Pezonella, Pezonella Associates

Public Relations/Sales & Marketing Council Provides a forum for the exchange of ideas and educational opportunities for sales and marketing professionals. Considers public relations campaigns and industry promotional opportunities. Major events include Forecast and Beyond and the annual BANN-ER Awards. Meets: 1st Thursday of each month at 8:00 am Staff Liaison: Missy Hinton [email protected]: Rachelle Goodness, The Builders Magazine

Remodelers CouncilA new addition to the association, the council is an organization of remodelers and industry associates dedicated to the promotion of excellence and professionalism through education, certification and service to the community. Meets: Third Monday of each month at 12 pmStaff liaison: Jess Traver, [email protected]: Tony Abreu, ASA Construction

BANN Committees & Councils

Back to BasicsYou don’t have to turn very far to see firsthand and understand the housing challenges we face in Northern Nevada. I still remember words my father once told me: “Opportunities arise and exist from challenges and difficult times. Count the blessings you have, not the ones don’t have.”

our ongoing housing challenges, the program that is hardest hit is conventional financing. In the state of Nevada, the private mortgage insurance providers are requiring a 10 percent down payment minimum and must have a credit score of 720, otherwise the buyer will be required to put 20 percent down. Second homes and investment properties also require a minimum of 20 percent down. With these tougher standards, it makes speculative investment purchases almost impossible. Investors generally carry a total of 9 financial properties, with a few investors allowing up to 10 properties on a case-by-case basis. The current market, made up primarily

of short sales and foreclosures, has been unfriendly to the local building contractors. We have seen the average price of homes Continued on next page

by Dwight Millard

With the right atti-tude and less negative press, we can overcome through shared values and visions, making Nevada a place people want to move to for a better quality of life

As one of the states hardest hit by the housing crisis, we have been forced to cope with tougher and tougher lending standards. We have seen elimination of many products that used to provide flexibility, and are currently able to originate the standard “vanilla” products. The most popular product is the 3.5 percent down FHA loan that continues to be the leader in home ownership financing. Mortgage investors now require a minimum mid-credit score of 620 and full income and asset documentation on ALL loans. Borrowers now must document complete job histories, current and potential income earnings, cash reserves, and overall stability to ensure home financing. VA, USDA and Nevada Housing loans are becoming an excellent source of financing for those good buyers who just don’t have any real money to put on the table as a down payment; however, these programs follow stricter guidelines. Due to

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