Survey Looks at Accessory Dwelling Units
John Wozniak - President
Jim Marzullo-Vice President
Frank Binetti - Treasurer
Pat Cardoni-City Chapter President
Michael P. Freiburger - Builder Director
Eric Pickell - Builder Director
Ed Augustin - Builder Director
Dave Brady - Builder Director
Patrick Coveny - Builder/NAHB Director
Fred Weiner - Builder/NAHB Director
Rich Tonioni - Associate Director
Scott Walbridge - Associate Director
Mitch Levinson - Associate Director
Rich Bridges - Immediate Past President
Scott Sevon - NAHB Senior Life Director
Sally Evans - Executive Officer
Roughly 20 percent of remodelers undertook projects that created an accessory dwelling unit (ADU) by converting an existing space over the past 12 months, and almost as many created an ADU by building a new addition. Those numbers come from a survey conducted by NAHB as part of its first quarter 2019 Remodeling Market Index.
NAHB started addressing this topic in its RMI survey because it is not possible to detect national trends in ADU creation through existing data sources. ADUs in general require permits, but ordinances vary tremendously across the country, and there are no federal government standards or programs to collect the information in a consistent way.
Many property owners may be unaware of, or may even ignore, the requirements. According to a 2006 report from the San Francisco Bay Area Planning and Urban Research Association, an estimated 90 percent of ADUs in San Francisco as of 1960 were created without obtaining proper permits.
Roughly 75 percent of remodelers in the survey reported ADU projects costing at least $50,000, and a substantial 28 percent reported projects costing at least $150,000.
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FAQ Explains New Opportunity Zones
According to the latest edition of NAHB’s study, “What Home Buyers Really Want,” 46 percent of recent and prospective home buyers want a security camera in their home, more than any other home technology feature listed in the survey. The next most desired technology features were: video doorbell (45 percent); programmable thermostat (44 percent); a wireless home security system (40 percent), and a multi-zone HVAC system (39 percent).
Recent guidance from the EPA seeks to clarify condi- tions under which ground- water discharges require a permit under the National Pollutant Discharge Elimina- tion System program. The guidance states that
"... releases of pollutants to groundwater are categori- cally excluded from the Act’s permitting requirements because Congress explicitly left regulation of discharges to groundwater to the states, and EPA has other statutory authorities.”
NAHB has updated its opportunity zones resource page with an FAQ outlining key points included in two sets of proposed regulations related to these new tax incentives.
Established as part of the Tax Cuts and Jobs Act of 2017, opportunity zones provide tax incentives for investors with capital gains to invest in underserved areas affected by poverty and unemployment. Roughly 11 percent of Census tracts in the United States have been identified for invest- tment. The federal government is now working to coordinate other federal initiatives with the opportunity zone program.
Court Remands WOTUS Rule Back to EPA
In a victory for NAHB and the housing industry, the U.S. District Court for the Southern District of Texas declared that the EPA violated the Administrative Procedure Act when drafting the Obama-era “waters of the United States” (WOTUS) rule in 2015.
In 2015, NAHB and the Texas Association of Builders, among others, filed a lawsuit in the Southern District of Texas challenging the definition in the 2015 WOTUS rule.
The court has issued a partial decision on NAHB’s summary judgment motion by remanding the 2015 WOTUS rule back to the EPA. However, the court did not vacate the rule.
The U.S. Department of Justice has announced a lawsuit against 82 multifamily properties involving more than 3,000 housing units in Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, North Carolina, Ohio, Oklahoma, Pennsylvania, Texas and West Virginia. The case is United States v. Miller-Valentine Operations. Alleged violations include accessibility barriers involving steps and inaccessible routes, inaccessible features in kitchens and bathrooms, lack of floor space for wheelchair users to maneuver, and public spaces that do not comply with the ADA.
DOJ Files Suit Against Multifamily Properties
Could Be a $2.5 Billion Tax
Could Be a $2.5 Billion Tax Court
EPA Offers Guidance On Groundwater
In a letter to members of the House Financial Services Committee, NAHB expressed concerns to federal lawmakers over increased costs and undue burdens to America’s home builders and home owners regarding the use of cluster mailboxes by the U.S. Postal Service.
Since 2012, the Postal Service has expressed preference for centralized delivery service, typically to cluster mailbox units. In practice though, this change has resulted in a de facto mandate for new construction across the nation.
By moving to cluster mailboxes in an attempt to save money, the Postal Service is essentially shifting this additional upfront cost to home builders — and ultimately — to home owners. It is unclear who, if anyone, will be responsible for the ongoing upkeep and maintenance of the units or any associated legal liabilities.
Employers Must Use New I-9 Form
New Index Shows Single-Family Production Mostly in Exurbs
Remodeling Spending by Zip Code
Home owners in the average zip code who improve their homes in 2019 will spend $8,327 per improvement, according to recent estimates from NAHB economists on spending on improvements to owner- occupied housing by zip code.
Not surprisingly, there is considerable variation across the country. There are many zip code areas where spending per improved home is under $6,500, and many other zip code areas where it is over $11,000.
Zip codes with high spending per improved home tend to cluster around large metro areas, especially in the Northeast. Ten of the top 11 zip codes, in terms of spending per improvement, are in New York State, and the other is in New Jersey.
Remodeling projections aggregated to the state level are available here.
NAHB Concerned about Mailboxes
In a sign that housing affordability is becom- ing a growing issue nationwide, exurbs were the only region that registered single-family permit growth on a year-over-year basis in the first quarter of 2019, according to NAHB's Home Building Geography Index (HBGI).
The HBGI is a quarterly measure of building conditions across the country. It uses county level information about single- and multi- family permits to gauge housing construction growth in urban and rural regions.
There are seven regions in this first iteration of the HBGI. They are: Large Metro – Core County, highly urbanized areas; Large Metro – Suburban County, inner and outer suburbs of larger metropolitan areas; Large Metro – Outlying County, exurbs of larger metropolitan areas; Smaller Metro – Core County, urbanized areas and inner suburbs of small metropolitan areas; Smaller Metro - Outlying County, outer suburbs of small metropolitan areas; Micro county, small towns; and Non Metro/Micro County, rural areas.
At 5.6%, the year-over-year growth in single- family permit activity of exurbs was the highest among the regional geographies in the HBGI.
Exurbs are outskirts of major metropolitan areas that lie beyond the suburbs.
727 West Madison Open House
Thursday Jun 13, 2019
HBAI Senior Officers Meeting
& June BOD Meeting
Thursday Jun 20, 2019
Regional BOD Meeting
Tuesday Jun 25, 2019
Backlot BBQ Bash Chillin and Grillin @themart
Wednesday Jun 26, 2019
Key Award Committee Meeting
Tuesday Jul 9, 2019
Regional BOD Meeting
Tuesday Jul 9, 2019
City Chapter Board Meeting
Wednesday Jul 10, 2019
Guaranteed Rate Rooftop
Meet 'n Greet
Wednesday Jul 17, 2019
Daybreak, a mixed- use, walkable community in South Jordan, Utah, is the first project in the region to reclaim surplus mining land and create opportunties for market-rate affordability without additional subsidies. The largest master-planned community in the state, it is entitled for more than 20,000 homes in the city of about 66,000 located 18 miles south of Salt Lake City.
Kennecott Land Company, the developer, was established in April 2001 by international mining company Rio Tinto to convert surplus mining land into mixed-use development. The planned development on 4,200 acres on the west side of South Jordan comprises about 36% of the city’s land area. An intensive and thorough period of remediation, restoration and reclamation for the property lasted through the mid-2000s; construction at Daybreak started in 2003.
In 2016, the developer sold its Daybreak assets to Värde Partners, a Minnesota-based global investment firm with a significant presence in Utah. A new company, “Daybreak Communities,” was formed to manage Daybreak’s development.
Daybreak incorporates smart growth principles to minimize sprawl, water use and congestion. The community’s collaboration with Envision Utah — a statewide nonprofit civic engagement organization — provides a guiding vision for the planning and development of the property.
The development of Daybreak is divided into 12 “villages,” each planned for approximately 1,000 to 1,500 residential units. It is a good example of creative land use that enables production of more affordable housing. To find more examples of innovative land use and other housing affordability resources, visit nahb.org/housingforall.
Mining Land Offers Affordable Housing Options
Affordable Project Enlivens Philly Community
Affordable Project Enlivens Philly Community