Residential SIP Demand Rises

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Use of alternative building methods and materials is on the rise, especially in the residential construction industry. While stick-frame construction is still the norm in much of the U.S., many builders are embracing the use of Structural Insulated Panels, or SIP’s, in construction. As concerns over environmental pollution, energy conservation, and affordable utilities attain a critical mass, builders more and more often find themselves working with SIPs.

The typical SIP is a piece of insulating foam core sandwiched between two pieces of OSB. The foam core may be composed of extruded polystyrene or rigid polyurethane insulation, and the boards could use plywood, precast concrete, sheet metal, or magnesium board for the structural facings.

Because SIPS create a continuous thermal barrier, they lack the thermal bridging problem created when using metal or wood studs. The air infiltration and heat resistance problems of fiberglass insulation don’t exist with SIPs. SIP construction tends to be 40% more airtight than stick frame construction, and a 4” SIP outperforms a standard stick-framed, insulated structure with comparative R-value.

SIPs are manufactured in a more eco-friendly way than stick-frame building materials are. The OSB in each SIP  is manufactured from younger, faster-growing, under-utilized wood, which conserves trees that would be otherwise be cut down to make dimensional lumber. The foam core in SIP’s is only 2% plastic, much of which is recycled. Because SIPs arrive at the jobsite cut-to-measure and ready to install, there is significantly less waste. Because building with SIPs is easier and faster than with conventional building, the construction time is quicker and the labor costs are lower.

With the increasing interest in environmentally sound home building, it’s a good idea to become familiar with the procedures and techniques of building with SIPs. Whereas you won’t need a worker to cut holes into studs for wiring because the wire chases are pre-cast in the foam, you will need to be extra aware of the plumbing and ventilation fittings. The air-tightness of a SIP structure will keep standing water from roof, window, or pipe leaks locked into the structure, which can cause accelerated rotting and structural collapse.

SIPs are an excellent, eco-friendly alternative to stick-frame construction, but they aren’t perfect. Residential building professionals who are familiar with the specific demands of SIP construction will produce high-quality and eco-friendly results. Which will make them much more desirable on the job market than those who aren’t.

3 Steps to a Great Outdoor Kitchen

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GC’s and subcontractors who are keeping up with the latest design trends know that more and more homeowners want their new homes equipped with outdoor kitchens. Unfortunately, one challenge many builders face with outdoor kitchens is that they are working with materials and conditions traditionally handled by landscapers, pool installers, and deck designers. Keeping these three tips in mind will help ensure that you’re building the very best outdoor kitchens your clients could wish for.

1. Basic Design Principles are All-Weather Concepts

Good kitchen design is good kitchen design, period. Make sure that the layout of cold areas (refrigeration), dry areas (prep counters), hot areas (grill/stove/oven), and wet areas (sinks) in the outdoor kitchen is as efficient and functional as the indoor kitchen layout. Each zone should have proper space and appropriate proximity to the other areas.

2. Light, Climate, and Power

Locating the grill, refrigerator, and stove to maximize their access to the home’s utilities is a no-brainer. But don’t forget that outdoor kitchens have an even greater need for adequate task lighting in the different function zones because there is no ambient lighting coming from the rest of the house, and much of the entertaining outdoors is done at night. You’ll also need to address outdoor cooling and heating needs if the homeowners wish to extend the seasonal use of their outdoor kitchen. This is doubly true if they client plans on having an outdoor dining room.

3. Durability

A well-designed outdoor kitchen demands two kinds of durability: design and equipment. A durable design is one that uses sturdy materials and closely matches the design elements of the rest of the house. Repeating tile patterns, brick types, colors, and exterior wall coverings ensures that the outdoor kitchen blends so seamlessly into the overall design so that the client won’t feel the need to remodel the space later on. Durability in equipment means installing countertops, sinks, and cooking gear that is specifically meant for outdoor kitchens and can weather the elements well season after season. It also means planning space for the clients to install any equipment (warming drawers, ice makers, an upgraded grill) they may choose to add later as their entertaining needs grow.

Green Climate Control Options for New Homes

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Although summer traditionally begins on June 21st, most Americans begin to feel the heat long before then. But ever-increasing energy costs and concerns over environmental pollution have left some reluctant to crank up the A/C, leaving their homes stifling and uncomfortable. As home builders forge ahead into the construction season, it’s a good time to think about what energy-efficient air conditioning and green cooling options are available for the homes they are building. There are four good alternatives to central air conditioners.

Perhaps the most conventional is the whole-house fan, or the “attic fan” as my dad calls his. Whole-house fans use 90% less energy than an a/c unit, and can be run instead of the a/c during the evening, when the outside air is cooler.

Another alternative is the ductless mini-split system, which pairs an external, wall-mounted condenser connected to a series of wall- or ceiling-mounted indoor evaporators via refrigerant lines. Each room can be cooled separately, and the system eliminates wiring, noise, and cumbersome energy-inefficient attic duct work while offering at least 30% in energy savings.

Perfect for warmer climates with low humidity, central evaporative coolers (also called “swamp coolers”) are a good option. Costing about 50% less than conventional air conditioners and consuming about 75% less energy, the evaporative cooler exploits the fact that evaporating water cools the surrounding air.

Geothermal “heat pump” cooling systems can also be used for wintertime home heating and heating your water year-round. They use about 30%-60% less energy than a typical air conditioner. Geothermal systems rely on the circulation of fluid to transfer heat from your home into the ground beneath, and US homeowners can get a 30% tax credit on geothermal systems thorough 2016.

If budget constraints make these options unpractical for your clients’ home, there are still ways to make conventional climate control more energy efficient and environmentally friendly. One strategy is to install tinted windows to reduce the amount of light and heat that get into the house. Adding extra insulation to the attic will reduce the amount of heat that gets in and keep temperatures inside the house lower. When paired with classic a/c, the humble ceiling fan boosts the circulation of cool air, meaning that the air conditioner can run for shorter periods of time and at higher thermostat settings, saving at least $30 per month on the electric bill.

Swimming Pool Trends for 2015

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In-ground swimming pools add value to your home and enjoyment to your life. But the amount of value and enjoyment homeowners can get increases dramatically when their swimming pool design is innovative and visually interesting. Once upon a time, the people were satisfied to have a simple circle or rectangle with a white concrete bottom and cement decking. Nowadays, homeowners’ expectations of what an in-ground swimming pool should be have changed. Here are some of the top swimming pool design trends for 2015, courtesy of the Master Pools Guild:

1. Alternative Finishes

The popularity of alternative finishes has been growing for the last few years, but 2015 is the year that they’re top of the list. Aggregate pebble finishes like Pebble Tec, slate, travertine, and limestone are the most sought-after pool finishes this year, especially for the decking and pool surround. Glass tiles have become more popular as well because they are stronger and more resilient than ceramic tiles and have a broader palette of color, texture, and finish options. Glass tile is usually used to accent the water’s edge, highlight the hot tub area, and add decorative flourish inside the pool.

2. Ledges

Instead of a settling for a uni-level pool, or a pool floor that gently slopes in one direction from shallow to deep water, many pool designers are including ledges in the pool design. Sometimes called Baja steps, thermal ledges, or lounging ledges, these areas are ideal for inexperienced swimmers and toddlers, but they make great launch spaces for water floats and toys. Ledges are also great for adults who just want to lounge in the water and not splash around too much.

3. LED lights-

LED lighting has been around for years, but the past decade has seen the popularity of LEDs soar. Their size, ease of maintenance, longevity, and shockingly low power drain has led to LEDs being used for swimming pool lighting. Instead of simple lighting for night swimming, LED’s are used to create a stunning atmosphere through outdoor lighting displays that often include Laminar jets. Homeowners who entertain often are especially keen to have breathtaking lighting design in their pool area.

If these trends show us anything, it’s that more and more homeowners believe a swimming pool should be the centerpiece of a total backyard environment. Swimming pool designers who meet these expectations will outsell and outperform those who don’t.

HUD Allocates $54 Million to Alabama for Renovation, Repair

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On February 12, the U.S. Department of Housing and Urban Development awarded $54,561,426 to Alabama public housing authorities. State agencies will now be able to make major, large-scale improvements to those properties. The funding came through HUD’s Capital Fund Program, which annually funds more than 3,100 public housing authorities nationwide for building, repairing, renovating, and modernizing public housing. These state and regional housing authorities use the funding to replace roofs, upgrade plumbing and electrical systems, and make energy-efficient upgrades. Interested contractors should submit bids and proposals through the HUD portal.

The United States federal government has been investing billions of dollars for developing and maintaining public multifamily housing for more than 75 years. An average of 10,000 public housing units are lost yearly through disrepair and dilapidation. The Capital Needs in the Public Housing Program study HUD released in 2011 found that the 1.1 million housing units managed by state housing agencies require $25.6 billion in large-scale repairs to keep the units safe for residents. Capital needs differ from routine maintenance needs in that they are extensive and intensive repairs that are needed to make the housing decent and economically viable.

To protect the federal government’s enormous investment in public housing and respond to the ever-increasing need for affordable housing, the Obama administration proposed the Rental Assistance Demonstration strategy to complement the Capital Fund program. The strategy offers a long-term solution to revitalize the nation’s stock of affordable housing, by leveraging private and public monies to make critical improvements. Much of the money allocated to Alabama by HUD last week was generated through RAD.

Of the recent awards, HUD Secretary Julian Castro says that, “Every American deserves a place to call home where they can successfully raise their kids, enhance their financial security and build a better life. Through this funding, HUD is committed to strengthening our nation’s affordable housing units and to providing folks with the springboard they need to succeed.”

HUD Southeast Regional Administrator Ed Jennings, Jr.  concurs, adding that “HUD continues to look for ways to improve the quality of life for public housing residents. This funding will help housing authorities address long-standing capital improvements and preserve and enhance America’s affordable housing.”

Prattville’s Winchester Ridge Breaks Ground

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Montgomery, Alabama’s rural suburb, Prattville, is home to a luxurious new housing development that seamlessly marries urban convenience and country living. The developers of Winchester Ridge planned the development around the historic Booth family farm to preserve the land’s historical value and the local lore surrounding the house.

According to realtor Mugs Mullins, the fourth generation of the Booth family wanted to sell the 48-acre farm but they didn’t want the 260-year-old farmhouse to be demolished. According to Mullins, local legend says “that this same property was lost in the 1800s after the then-owner found himself on the losing end of a year-long poker game. If the walls could talk,” Mullins adds, “there is no telling what we could learn.” The historical intrigue surrounding the home lead developers to “incorporate this charming home into what is now Winchester Ridge,” instead of tearing it down.

Although it is only 3 minutes from downtown, the land is in a peaceful, rural part of Autauga County. The neighborhood has several lots available which vary in size, and enjoys limited pass-through traffic. There are currently 40 people living in Winchester Ridge, which has a private, residents-only common area with splash pool, playground, and picnic area. Pending approval by the neighborhood architectural review board, buyers can bring their own plans and builders to Winchester Ridge.

The homes are built by local home builders with unique styles. Although each home is unique, all homes share massive crown molding, wood floors, ceramic tile, granite countertops, contemporary fixtures, and richly appointed master suites with garden tubs and separate walk-in showers. The median home price is $262,000, with lot prices ranging from $34,000-$35,000. There are five homes with square footage ranging from 2,001-2,791 currently on offer, with seven build-ready lots available. Several homes are currently underway, with more to be built in 2015.

 

 

KB Home Intensifies Interest in San Antonio Market

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KB Home  has finally opened The Reserve at Southton Ranch in Bexar County, just south of downtown San Antonio past I-37. When completed, this master-planned neighborhood will add 128 new homes to the area.  KB Home is carefully developing the Southton Ranch subdivision to keep pace with the growth San Antonio’s petroleum industry has recently experienced. There are currently 268 homes occupied in Southton Ranch.

KB Homes believes that The Reserve will appeal to young professionals who want to live just south of Downtown along I-37, but want access to the major employers in Brooks City Base, and the Eagle Ford Shale cities of Floresville, Pleasanton, and Jourdanton. The Reserve offers 14 customizable, energy-efficient home designs ranging from 1,340 to 2,708 square feet with prices starting in the mid-$150,000’s. Brett Dietz, president of KB Home’s San Antonio division, says that “families who want an energy-efficient new home that feels like it is in the country but is actually only minutes from downtown San Antonio, The Reserve at Southton Ranch is the perfect choice.” He adds, “we’re expanding in response to the popularity of our prior phase at Southton Ranch by offering today’s homebuyers the chance to own a beautiful KB home at The Reserve at Southton Ranch.”

San Antonio has been enjoying record new home starts and home sales, but this success hasn’t reached south San Antonio—until now. Their development of Lago Vista off of Zarzamora Road made KB Home the first builder in five decades to build on the south side of the city. KB Home’s Villa Del Sol, Esperanza, and Vistas at Carmona Hills are also located on the south side. Braunig Lake, the San Antonio Mission Trails, the Mitchell Lake Audubon Center, Palo Alto College, and Texas A&M University-San Antonio are among the area offerings that KB Home believes will draw residents to these neighborhoods. It is hoped that KB Home’s residential development will spur economic investiture in south San Antonio.

KJIMS Homes Moves In to Naples and Marco Island Housing Market

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Sarasota’s KJIMS Homes is bringing their high-end luxury homes to Naples and Marco Island. KJIMS specializes in high-end homes and top-notch customer service. The company works to provide a seamless transition of services from the design phase all the way through to project completion.  The firm carefully studies each family’s lifestyle demands, and tastes before designing a home that is tailor-made to their preferences and needs.

Veteran builders Dan DiComo and Jon MacDonough bring their experience, focus, and hands-on philosophy to their luxury homebuilding business. DiComo is a decade-long resident of Marco Island with 30 years of industry experience in engineering, interior design, and architecture. He received his Bachelor of Architecture from the University of Michigan before beginning his own firm in 1993. DiComo, a member of the American Institute of Architects and the Florida Green Building Coalition, brings his design-build and project planning expertise to bear when collaborating with the clients and the design team. According to DiComo, his clients expect “the highest level of quality that can be delivered … That’s why we’re comfortable promising them to expect extraordinary with every detail.”

MacDonough got started in the building trades as a teenager growing up in Rhode Island. Working alongside New England master tradesmen helped MacDonough hone his skills as a builder and contractor. Upon relocating to Naples in 1989, he expanded into project management and entrepreneurship and eventually became a certified general contractor. This life experience of working his way up from tradesman to manager to business owner gives MacDonough a grounded and rounded approach to the construction process. “Our goal is to deliver a positive experience and high level of service throughout the relationship,” he says, “we take a personal approach that is intentionally different from the industry standard. Maximum quality materials and craftsmanship, as well as educating our clients throughout the process, is our focus.”

Long considered to be pricey upgrades by most builders, features like home automation, sustainable materials, and aesthetically placed outlets, fixtures, and registers are standard in KJIMS Homes. The firm’s signature Simonton design is currently being built as a spec home on Marco Island. The two-story, four-bedroom, 4.5-bath home features 5,360 square feet of living space, 10-foot pocket sliding glass doors between the indoor and outdoor living areas, covered balconies, a second-floor activity room/bar, a pool/spa, and a three-car garage. The firm is also working on several private residences in downtown Naples.

KJIMS Homes has offices in Naples at 1045 Crosspointe Drive, Suite 1; Marco Island at 1770 San Marco Road, Suite 205A; and Sarasota at 8141 Lakewood Main St., Suite 208, Lakewood Ranch.

Fannie Mae Embraces LEED for Multifamily Through Lower Interest Rates

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On February 6, the United States Green Building Council announced that Fannie Mae will reward green-built multifamily projects with a lower interest rate. The USGBC’s LEED rating system is one of several recognized certifications, with ENERGY STAR® and Enterprise’s Green Communities Criteria being among the others Fannie Mae considers eligible.

Green-certified multifamily properties will now be granted a 10 basis point reduction in the interest rate of a refinance, acquisition, or supplemental mortgage loan. If the market rate for a multifamily loan is currently 4%, then the new Fannie Mae program will drop that rate to 3.9%, for example. An owner will save $95,000 in interest payments over a 10-year term on any $10 million dollar loan they have which is amortized over 30 years.

United States Green Building Council CEO and founding chair Rick Fedrizzi says that, “This is a great demonstration of leadership from Fannie Mae, and the partnership between the multifamily finance industry and the green building industry.” Fedrizzi emphasizes that, “this is real money and an incentive to not only build green but also for existing buildings to achieve certification. For the first time, Fannie Mae multifamily lenders will be able to reward building owners for their better buildings.”

Fannie Mae’s executive vice president for multifamily Jeffrey Hayward echoes Fedrizzi’s enthusiasm. “Fannie Mae is leading the way in financing by offering new lower interest rates for green building certified multifamily properties,” he says, adding that “We clearly see the value in the triple-bottom line of certified green buildings: financial benefits of lower operating costs for owners and tenants; social benefits of better quality housing for renters; and environmental benefits for everyone.” Fannie Mae’s lenders “are ready with financing solutions to help multifamily owners make their properties more energy and water efficient for today and for the future.”

All loans financed by Fannie Mae under this lower interest rate will be securitized by Green MBS, a move that will grow the total volume of Green Bonds in the market which socially responsible investors can include in their portfolios. As the leading provider of multifamily financing in the U.S., Fannie Mae’s portfolio is valued at over $200 billion.

LEED buildings combine lower utility costs with higher energy and resource conservation metrics. LEED building occupants have more disposable income due to the energy savings, and the eco-conscious designs emphasizing non-toxic materials create healthier living environments. A U.S. Department of Energy report demonstrated that LEED buildings consume an average of 25% less energy, 11% less water, and have 19% lower maintenance costs, with 27% higher occupant satisfaction and 34% lower greenhouse gas emissions.

Home Buying and Wealth-Building: Is Equity Incentive Enough?

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In her depth exploration of the current housing market, Nancy Cook of The Atlantic recently asked whether home ownership is still the best way for Americans to build wealth. Her answer: yes, but less so than in previous decades. “Even if the rates of home ownership do return to their pre-bubble levels,” Cook explains, “experts and advocates acknowledge that home buying remains an imperfect crutch to boost wealth.”

Above and beyond building wealth through equity, home ownership affords many tangible benefits for buyers. Home ownership is still an important marker of stability and success in the American imagination. Homes for purchase tend to be located in better school districts and in better proximity to services than homes in rental neighborhoods. And the equity factor is still one of the best ways of building wealth for many Americans during this time of wage stagnation and pension shrinkage. As Brett Theodos, a senior research associate at the Urban Institute explains, “It is a forced-saving mechanism, and if you don’t have to think about saving, it goes better.”

This fact is part of why economists and politicos are worried that our housing market has failed to recover fully. Credit lending standards are so tight that anyone with the means but inadequately perfect credit still can’t get a home loan. The tight economy has stagnated the creation of new households, as people prefer to bunk with family and roommates to weather financial distress. First-time buyers, minorities, and Millennials are very under-represented in the current housing market. The impact of this situation on America’s economic future, and on the long-term financial wealth of those under-represented parties, remains to be seen but doesn’t look terribly good.

The Federal Housing Administration recently announced a plan to cut mortgage-insurance premiums, in a bid to nudge first-time buyers into the market. The plan will save homeowners about $900 annually on their mortgage payments. But even if home ownership rates return to pre-2008 levels, home buying is still only a means to prop up the acquisition of personal wealth. The 2000s saw record levels of Americans refinance their homes, pulling money out and using their house as a savings account, which has made housing less of a certain option for building long-term wealth. According to Theodos, the issue isn’t about home ownership as a perfect strategy, but rather, “What other vehicles are out there to help people build wealth over the course of their lifetimes and over generations? Private savings isn’t doing it.”

In order to recapture the full potential of home ownership to build wealth, Sarah Edelman of the Center for American Progress says that policymakers should take a two-plank approach to stimulating home ownership. “The majority of first-time home buyers may not be able to come up with a 20 percent down payment,” says Edelman, “for the future health of the housing market, we must make sure families who can afford to buy a home do.” New home ownership policies must acknowledge the value of home ownership as a way to build equity, and promote ways to help first-time buyers and renters save money for a down-payment on a home.

This would mean that private firms, civil agencies, and the federal government must experiment with new approaches. Creditworthiness should be measured in a much broader fashion than the current paradigm allows, programs that encourage automatic savings depots from earned income must be developed, and programs to help debt-ridden homeowners modify their mortgages as the housing market valuation changes should be a top priority. Equity-sharing programs for homes and apartments may also be a potential solution.

Until these issues are productively resolved, the housing market will not recover its full value, or its potential for wealth-building for the American people.