State News

FHBAction News (August 13, 2007)

President’s Message By John Wiseman
On behalf of FHBA Senior Officers, it’s my pleasure to officially invite you to attend the 2007 FHBA Annual Fall Conference, slated for October 3-6 at the Ritz-Carlton in Amelia Island – just 25 minutes from the Jacksonville International Airport . As always, FHBA’s Fall Conference offers a wealth of opportunities for members. Among the many events and activities that will take place are FHBA committee and the Board of Directors meetings, election of FHBA Senior Officers, the Hall of Fame reception honoring new inductees Barry Rutenberg and Arnold Tritt, a “Pirates of Amelia” Spike Night social, Installation Night ceremonies where FHBA will welcome Robert Parrish of Tallahassee as the new President and Ann Hagen of Longwood as the new Second Vice President, as well as the announcement of the Builder, Associate and Remodeler of the Year award winners. Now is the time to make your reservations. September 3 is the cutoff for rooms at the Ritz-Carlton Amelia Island and September 21 is the deadline to pre-register for the conference. Visit www.fhba.com for additional information and to register. I look forward to seeing you there.

Bush Pushes Immigration Crackdown
The Bush Administration announced numerous measures last Friday to secure the border with Mexico, speed the expulsion of illegal immigrants and step up enforcement of immigration laws. The President’s efforts stem in part from White House frustration with the failure of Congress to approve his proposals to overhaul the nation’s immigration laws and grant legal status to most of the estimated 12 million illegal immigrants. This new crackdown on illegal immigrants could force millions of business owners to either fire them or face heavy fines and even imprisonment. The Department of Homeland Security (DHS) announced the new rules on how employers must respond if they receive a letter from the Social Security Administration (SSA) stating that a worker’s name or Social Security number does not match agency records. The SSA sent out 127,000 such “no-match” letters in 2005 covering 7.3 million mismatched records, according to government figures. Under the proposed new rule, the DHS would have access to the SSA no-match letter data. Many of these letters were the result of clerical errors such as misspelled names, typographical mistakes and failure to record name changes when newly married women switch from their maiden name to the surname of their spouse. In addition, in the Latino culture, it is common for a person to have several surnames, which can generate confusion. According to news reports, the proposed new rule will likely mean that employers who receive "no-match" letters would have 14 days to inform the employee and to recheck the Employment Eligibility Verification Form I-9, which they are required to keep under federal law to verify the identity and work authorization of all persons who are hired. Employees would have 60 days to contact the SSA and attempt to correct any discrepancies. If the employee is unable to rectify the "no match" problem, the employer would then have three days to conduct a new I-9 verification using different identification documents. If, after the end of this process, the employer cannot verify the legal status of their worker, the employee must be terminated. Employers who fail to comply could face stiff fines or even imprisonment for each worker that is found to be an illegal immigrant. In the coming days, NAHB is expected to provide full details along with a compliance checklist for builders to follow should they receive a letter from the Social Security Administration regarding a no-match situation.

Hometown Democracy “Gadfly” Busted
Extremist activist Joyce Tarnow, called a "gadfly" by the St. Petersburg Times, was arrested outside a Publix supermarket in Pompano Beach in July, according to an August 8th Times report. Tarnow, who is no stranger to controversy, said she plans to challenge the arrest in court - and plans to break the law again. According to the Times story, Tarnow was fully aware of a new law granting businesses the right to eject unwanted signature gatherers from their property. Instead of obeying the law, she repeatedly approached customers asking for their signature in favor of the Hometown Democracy constitutional amendment proposed by her group. When asked to leave, Tarnow refused. She was subsequently handcuffed, arrested, booked, and spent two-days in jail. After the debacle, she told the Times reporter she would be violating that same law again soon, even though she pled no contest to the charges against her. "Tarnow is one of several extreme special interests behind the so-called Hometown Democracy amendment," said Michael Caputo, executive director of Floridians for Smarter Growth. "Tarnow's arrest proves yet again that these folks aren't far left or far right – they are just far out." Tarnow, once the operator of a South Florida abortion clinic, spent many years and thousands of legal dollars to protect her own private property from protestors. In a recent opinion/editorial penned for the South Florida Sun Sentinel,, Tarnow noted she supports Hometown Democracy because it will help move the US Congress closer to what she calls "a population policy that reduces population pressure" on society. In fact, Tarnow serves as the vocal president of Floridians for a Sustainable Population, an extreme anti-immigration group pushing for sealed borders, severely limited immigration, and a mass round-up of undocumented aliens. She is also the owner of Sterilization Services, Inc., and when asked by a reporter in 2004 to clarify her population control views, she said she believes, "Fertility is an environmental issue. That's why I try to get as many people sterilized as are in my way!" Floridians for Smarter Growth has proposed a smarter amendment to manage growth. Please visit www.FLSmarterGrowth.org for more information and to download, sign, and submit the petition.

Remodeling Activity Slows Slightly
Consistent with the overall housing downswing, remodeling activity slowed slightly in the second quarter of 2007, according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI). The current market conditions component slipped from 46.1 to 44.8 on a seasonally adjusted basis and the future expectations measure declined by more than two points to 44.1. The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number over 50 indicates that the majority of remodelers view the market conditions as improving. "While we have experienced some weakening in the remodeling market, activity has remained relatively steady," said NAHB Remodelers Chairman Mike Nagel, CGR, CAPS, a remodeler from Chicago. "We may have seen a decline in the number of major remodeling projects; however the market has been buoyed by an increase in the number homeowners requesting smaller scale projects and home alterations." In the South, current market conditions declined from 45.9 to 42.3 and future expectations moved from 50.7 to 45.0. "Not surprisingly, the remodeling market is following the downswing we are seeing in the overall housing market," said NAHB Chief Economist David Seiders. "We expect some further erosion in the second half of this year and in 2008, followed by a gradual recovery in 2009 and beyond."

Home Fortification RFP Issued
Volunteer Florida Foundation/Florida Disaster Recovery Fund has issued a request for proposals to fund nonprofit organizations willing to serve as local project managers in the My Safe Florida Home low-income, home fortification program. The deadline for proposals is August 29. The Foundation will select nonprofit partners to help deploy $20 million appropriated by the Florida Legislature to assist low-income homeowners in strengthening their homes against disasters. Unlike the broader My Safe Florida Home program, qualifying low-income residents do not have to match the grant money used to fortify their homes. The new funding for low-income Floridians will effectively double the outreach (an initial $20 million in funding was begun by the Foundation and its nonprofit partners in 2006.) Nonprofit applicants will be evaluated in part by their ability to use donated funds, materials and volunteer time to expand the impact of grant funds. This program is part of the My Safe Florida Home Program managed by the Florida Department of Financial Services.

BUILD Gears Up for 2008 Class
Preparation is underway for a second successful year of FHBA’s Building University for Individual Leadership Development (BUILD) program. Currently, the 16-member BUILD Class of 2007 program is near its completion. Class participants recently completed their third of four intensive two-day training sessions. The program, which prepares individuals for leadership roles in their industry, association and community, has included a wealth of top-ranking leaders and educators as guest speakers, group interaction, book reports and special projects. The BUILD Class of 2008 will be available for up to 20 FHBA members. Dates and general curriculum for next year’s class are now available on www.fhba.com . Now is the time to consider this opportunity for personal and professional growth.

Rising Fees Eroding Affordability
Even as the housing market correction continues to exert downward pressure on new home prices, localities continue to push forward with new fees and regulations that will further erode housing affordability, according to a new study released by the National Association of Home Builders (NAHB). The report on the impact of government regulation on housing shows that each $1,000 increase in the cost of a new median-priced home forces 217,000 prospective buyers out of the marketplace. Based on national mortgage underwriting standards and incorporating the latest data from the U.S. Census Bureau, the report contains detailed results for more than 300 metro areas. The analysis found that every $819 rise in fees paid at the beginning of the construction process – such as an increase in the price of a construction permit, a tap fee, a proffer or an impact fee – adds an additional $1,000 to the final price of the home. “The study shows that even modest impact fees can have a dramatic effect on housing affordability,” said Jerry Howard, executive vice president and CEO of NAHB. “Local governments need to understand that higher regulatory costs frequently push up the price of housing beyond the means of many teachers, firefighters, police officers and other moderate-income workers.” To view a detailed breakdown on how a $1,000 price increase on a median-priced home affects households in individual metro markets, please go to www.nahb.org/pricedoutcities . The full study is available online at www.nahb.org/pricedout.