FHBAction News (March 8, 2010)

President’s Message
By Chuck Fowke
The 2010 Legislative Session got off to a quick start last week with lawmakers passing a much-anticipated unemployment tax relief bill on the very first day. The bill, signed into law by the Governor just hours later, will help Florida’s businesses by delaying a massive unemployment insurance tax increase for two years.

Later in the week, we saw positive action on three of FHBA’s 2010 Top Priorities. A House committee unanimously voted in support of a measure that will block mandatory fire sprinklers in all new one- and two-family dwellings. This bill, sponsored by Rep. Robert Schenck (R-Spring Hill), now travels to additional committees for hearings. Also, Rep. Gary Aubuchon’s (R-Cape Coral) affordable housing bill received a favorable hearing. This bill is designed to lift the cap on the Sadowski Trust Fund. Finally, FHBA’s condo bulk-buyer priority garnered positive hearings in the House and Senate. HB 561 by Rep. Ellyn Bogdanoff (R-Ft. Lauderdale) passed its second hearing, and SB 1196 by Sen. Mike Fasano (R-New Port Richey) passed its first hearing.

Overall it was a positive week. But perhaps the most encouraging signal last week came from Speaker of the House Larry Cretul’s (R-Ocala) opening day remarks. As the Speaker addressed members of the House of Representatives, he encouraged them to “do government business a new way.”

“State laws should be made smaller and cleaner. That means repealing out-of-date laws so that the Florida Statutes will actually be smaller than we started. It also means analyzing the way rules are made by agencies. It does Floridians little good for us to set policies to bring economic growth back to Florida if state agencies are going to hinder those efforts with bureaucracy and red tape. We need to bring them back in line with legislative priorities.”

These are welcome comments from the Speaker. This year, perhaps more than ever, lawmakers have the opportunity to put the brakes on Florida’s decline, improve the state’s economic climate and create a more welcome environment for private sector job growth. Positive legislative actions, like job killing regulations that can sometimes accompany agency rules, will send strong signals to Florida businesses that our state can be competitive.

Throughout Legislative Session, FHBA will email legislative updates in an effort to keep each of you apprised of actions impacting the industry. You can also get updated legislative information by visiting FHBA’s Legislative Update.

Governor Signs Tax Relief Bill Into Law
Last Tuesday, the first day of the 2010 Legislative Session, lawmakers made good on their promise to provide unemployment tax relief to Florida employers. Members of the Florida Senate and House of Representatives passed a bill designed to delay most of the pain from a massive unemployment insurance tax hike for two years. Governor Crist signed the bill into law the same day. A strong coalition of business organizations, including the Florida Home Builders Association, joined together in a united fashion to encourage lawmakers to seek relief. The unemployment insurance tax hike occurred after the state was forced to borrow $1.1 billion from the federal government to keep benefits flowing for Florida’s unemployed. If lawmakers had not delayed the increase, some employers would have faced a 1,000 percent increase in unemployment taxes. Senate President Jeff Atwater (R-North Palm Beach) and Speaker of the House Larry Cretul (R-Ocala), along with bill sponsors Sen. Rudy Garcia (R-Hialeah), Rep. Dave Murzin (R-Pensacola), and Rep. Jennifer Carroll (R-Jacksonville), are to be commended for their leadership on this very important legislation. To learn more, visit FHBA’s Legislative Update.

Committee Votes to Block Sprinklers
The House Governmental Affairs Policy Committee last week voted unanimously in support of a bill that would prohibit mandatory fire sprinklers from being installed in new one- and two-family dwellings. Bill sponsor Rep. Robert Schenck (R-Spring Hill) said he didn’t believe the state should be “putting another burden” on future homebuyers. Preventing ill-conceived, costly mandates like residential fire sprinklers is one of the Florida Home Builders Association’s 2010 Legislative Priorities. The issue is in the forefront of lawmakers because in 2009, the International Code Congress (ICC) adopted a mandate that automatic fire sprinklers must be installed in all new one- and two-family dwellings effective January 2011. Unless lawmakers take action this session to prohibit this mandate, the Florida Building Commission will be forced to include it in the 2010 Florida Building Code. PCB GAP 10-22 will now travel to be heard before additional committees.

Register for Spring Legislative Conference
Make plans now to attend the Florida Home Builders Association’s Spring Legislative Conference. Scheduled for April 6-8 at the DoubleTree Hotel in Tallahassee, Spring Legislative Conference is the best time for members to get an up-to-the-moment briefing on legislative actions impacting the industry. Plus, Spring Conference affords members the opportunity to meet one-on-one with their members of the Florida Senate and House of Representatives. The conference schedule includes various FHBA committee meetings, an in-depth legislative briefing, and the traditional legislative reception for FHBA members and lawmakers. The complete Spring Legislative Conference schedule and registration form can be found at www.fhba.com under Top Story. Lodging accommodations are available at the DoubleTree Hotel. The room rate is $150 per night, and reservations can be made directly with the hotel at 800-222-8733 or www.tallahassee.doubletree.com. When registering online, enter your arrival/departure dates, click Go, scroll to Special Accounts, and enter FHB in the Group/Convention section. Deadline for hotel reservations within FHBA’s block is March 19, 2010. FHBA’s Spring Legislative Conference is sponsored by: Florida Home Builders Insurance, Mid-Continent Group, and Coverings 2010.

Free Chinese Drywall Webinar March 11
During a free webinar by the National Association of Home Builders and the insurance broker and risk advisor, Marsh, home builders can obtain up-to-date information on testing and remediation protocols for corrosive drywall and learn about the insurance ramifications if they built homes with the product. The webinar, “Evolving Solutions to the Corrosive Drywall Crisis,” will be held from 12:00-1:30 p.m. EST on Thursday, March 11. The webinar will include a question and answer period at the end of the presentation. Participants should submit questions in advance to kathy.hill@marsh.com. Panelists include: Katherine Cahill, managing director, leader of Global Product Risk Practice, Marsh; Barbara Manis, MD, chief medical officer, The NMAS Group, a medically-based enterprise risk management firm; Bruce Hallock, PSP, CFCC — vice president, Construction Consulting Practice, Marsh; Alan Schoem, senior vice president, Global Product Risk Practice, Marsh; and John Denton, senior vice president, Mass Tort and Complex Liability Practice, Marsh. To register online, click here. Once registered, participants will receive webinar access instructions. For more information or to register by phone, contact Kathy Hill at Marsh at 918-586-7938.

Building Industry Economic Forum Scheduled
The Florida Independent Concrete and Associated Products, Inc. (FICAP) and the Florida Home Builders Association (FHBA) will host a Construction Industry Economic Forum on April 27 in Orlando. The forum will bring top national economists together to discuss the future of construction in Florida. Featured speakers include David Crowe, Chief Economist for the National Association of Home Builders (NAHB); Matt Lesser, Chief Financial Analyst, American Express New York; and an economist from the Florida banking industry. The event will be held April 27, from 5:30 – 8 pm at the Holiday Inn, Universal Orlando. Cost is $45 per person, which includes dinner. Reservations are required. For additional information, call 407-333-3694 or visit www.ficap.org.

SEBC Offers 11 Specialized Courses
The 32nd annual Southeast Building Conference/Green Building Show will offer 11 professional designation courses and intensive training sessions on July 21-24, 2010 at the Rosen Centre Hotel in Orlando. A complete list of the courses and instructors is available at www.sebcshow.com under the Attending icon. Highlighting the lineup is the recently updated two-day Green Building for Building Professionals course which leads to the designation Certified Green Professional (CGP). The course will be taught by Houston remodeler Michael Strong. New to the intensive course lineup for 2010 are Seven Secrets of Sales Success, Sales and Marketing for Remodelers, Strategies for Attainable Housing (which includes a housing tour), Social Media Boot Camp, and Lead: Renovation, Repair and Painting, an EPA-required course for contractors doing work on homes built before 1978 or any structure where children might be present. Course fees are discounted for Florida Home Builders Association members.

Housing Tax Credit Expiring Soon
Builders incorporating the housing tax credits into marketing plans should begin making potential home buyers aware that they should act quickly – tax credits expire on April 30, 2010. It’s not too late for buyers to take advantage of the $8,000 first-time home buyer or $6,500 repeat buyer tax credits. There are plenty of existing homes on the market, and even though the move-in ready newly constructed homes inventory has dwindled, builders may still be able to finish a home in time. The IRS provides an additional two months beyond the deadline to close the deal. Buyers who sign a sales contract by the April 30 deadline are still eligible if they close the sale of the home by June 30, 2010. More people than ever before are eligible for a home buyer tax credit, the National Association of Home Builders (NAHB) estimates that close to 70 percent of all potential buyers should qualify for some form of a credit. "First-time" buyers don't have to be buying their first home ever; they are defined by the IRS as those who have not owned a principal residence in the past three years. Repeat buyers may be eligible for a new $6,500 credit, as long as they have owned and lived in their current home at least five consecutive out of the past eight years.  The current credits also increase the income limits, enabling single taxpayers with incomes up to $125,000 and married couples earning up to $225,000 to potentially qualify for a full credit. NAHB's Web site at www.federalhousingtaxcredit.com, which has received more than 6.5 million visitors since the site launched, provides basic information about the credits, detailed question and answer sections, and links to additional home-buying resources for consumers.

NewsNotes: Sadowski Funding Supported
The Florida Times Union last week published a positive editorial in support of fully funding, and repealing the cap on Florida’s affordable housing trust funds. “We must help restore credibility in government by putting the ‘trust’ back in Florida’s trust funds,” the editorial stated. FHBA extends a special thanks to Northeast Florida Builders Association Executive Officer Daniel Davis for his great work in encouraging this positive editorial…Lake County Commissioners last week voted 4-1 to suspend transportation impact fees for a one-year period. Many HBA of Lake County members testified in support of the temporary suspension…Jacksonville engineering professional, and Florida Home Builders Association member, Timothy Adkinson, P.E., LEED AP, has opened Adkinson Engineering. Adkinson is a LEED accredited professional and licensed in Florida and Georgia.  His firm specializes in civil engineering services for private industry and public sector, including project management, quality assurance, stormwater/drainage design, water and sewer design, roadway design, permitting and construction cost estimating. He brings more than 15 years experience to his firm, which includes his work with King Engineering Associates in Tampa and Jacksonville. Adkinson Chair’s FHBA’s Commercial Builders Council, is active with his local Northeast Florida Builders Association, and is a 2007 graduate of FHBA’s Building University for Individual Leadership Development (BUILD).

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