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The official magazine of the North Carolina Home Builders Association Vol. 36, No.

10,
October 2009

NCHBA enjoys
legislative success
What’s new in building systems
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Features
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V ol . 39, N o . 9, O ctober 2009 The official magazine of the


North Carolina
Home Builders Association 2005 Communicator Award Winner

Dedicated to the advancement of the home building industry,


North Carolina Builder (ISSN 1552-8685) is published
monthly for the members of the North Carolina Home Builders
Association, P.O. Box 99090, Raleigh, N.C. 27624-9090.
(800) 662-7129 • http://www.nchba.com
Mike Carpenter
Executive Vice President mcarpenter@nchba.org
and General Counsel
Lisa Martin
Director of Government Affairs lmartin@nchba.org
To be named
Director of Regulatory Affairs
Robert Privott
Director of Codes and Construction rprivott@nchba.org
Jessica Hayes
Director of Political Affairs jhayes@nchba.org
4 14 Kathryn Atkinson
Director of Membership Services katkinson@nchba.org
Deborah Alford
Director of Exhibitions dalford@nchba.org
Budget dominated session but industry prevailed on most issues 4 and Education
Because of the wide range of issues affecting home builders, no other trade association is impacted by Tracie Garrett
Director of Exhibitor Services tgarrett@nchba.org
as many bills as NCHBA. Despite the challenge of staying abreast of 531 bills, when the 2009 General
Kep Paylor
Assembly finally adjourned, it was clear that NCHBA had achieved most of its legislative goals. Vocational Education kpaylor@nchba.org
Linda Hall
NCHBA’s top legislative issues 10 Controller lhall@nchba.org
Erin Jones
Find out at a glance what ranked among the top issues to the building industry during the 2009 legislative Manager of ejones@nchba.org
session. Political Operations
Heather Crews
Director of Communications hcrews@nchba.org
Building systems continue to carve niche 14 and Managing Editor
Find out what building systems manufacturers are offering in this issue’s product roundup. To be named
Assistant Education Coordinator
Beth Gray
NCHBECF lends students a helping hand 18 Receptionist bgray@nchba.org
Five students have been awarded scholarship assistance from the North Carolina Home Builders Educational
Advertising Sales Executive Sharon Freeman
& Charitable Foundation (NCHBECF). (888) 364-5271
freemanfour4@cox.net
Graphic Designer Paige Takach

Contents
Publisher Association Publishing Inc.
www.associationpublishinginc.com
Sandra Amidon and Joyce Hearn, APR (757) 420-2434

Acceptance of advertising in North Carolina Builder does not


imply endorsement of the product or service by NCHBA. Opinions
2. President’s Message expressed in articles are those of the authors and people quoted
and not necessarily those of NCHBA, nor does
4. Capitol Insider mention of specific products in editorial content
imply endorsement by NCHBA. No material may
be reproduced for further publication without the
18. Build-Pac Contributors express permission of the association.
North Carolina Builder is published for the
16. Knowledge Builder principals and employees of all member firms of
the North Carolina Home Builders Association Affiliated with the
19. Spike of the Month and its receipt is included in the membership fee. National Association
of Home Builders.
North Carolina Builder is published monthly except
20. NCHBA News for January. Since the mailing list used by North Carolina Builder is
compiled according to membership records, address corrections
should be directed to your local association. Nonmember subscrip-
tions are available from the publisher for $30 a year. Dues paid to
NCHBA are not deductible as charitable contributions for income
tax purposes. However, they may be deductible as ordinary and
necessary business expenses subject to restrictions imposed as
On the cover: a result of association lobbying activities. NCHBA estimates that
the nondeductible portion of your 2009 dues — the portion that is
Gov. Perdue signs the permit extension bill into law, while Mike Carpenter, Jessica Hayes, Frank Wiesner and Lisa Martin look on. allocable to lobbying — is 28 percent.
(Photo courtesy of the Office of the Governor.)

October 2009 North Carolina Builder   1


2009 NCHBA President’s Message
Leadership by Frank Wiesner, 2009 NCHBA President

A year of growth and survival


President
Frank Wiesner

President-Elect

W
Lyle Gardner
hen we look back on 2009, I believe we can agree that this year will be indelibly
First Vice President burned into our memories as a year that, for most of us, has tested our abilities and
Bill Daleure preparedness to deal with many difficult circumstances. I know that I will never
Secretary/Treasurer forget 2009, as it has certainly been a year that I have encountered opportunities for
Rick Shields growth in all aspects of my life.
Executive Vice President My wife, Laura, and I recently celebrated our 26th wedding anniversary,
Mike Carpenter and we were the guests of our McDowell, Mitchell & Yancey HBA for our
Immediate Past President anniversary dinner at the HBA’s monthly meeting. First, let me state that my
& NAHB Executive Committee wife has enthusiastically supported my work representing you, our NCHBA
State Representative
Ray Rhodes
membership, in my travels and time away from home over the past few years but
especially this year.
NAHB Executive Committee Before you feel sorry for her and angry
Rick Judson Wiesner I have recognized that
at me for dragging her around the state on
Vice President, Region I survival in all areas of
such an important day in our lives (or perhaps you are thinking
Patrick Mann
I forgot it was my anniversary and scheduled the meeting and our lives requires good
Vice President, Region II couldn’t get out of it), shame on you for thinking such things! and wise decisions, a
Glenn Morrison
I scheduled the meeting as an anniversary gift for my wife … willingness to learn
Vice President, Region III as we had delivered our youngest daughter to Appalachian State
Barry Tutor from our mistakes, and
University to begin her freshman year a week or so before.
Vice President, Region IV As I had scheduled this August meeting in Marion back in sometimes having to let
Ralph Doggett May, I had made a decision that proved wise in the end. I thought go of things that have
Vice President, Region V that our little girl would be ready for a visit from Mom and Dad become a big part of
Jackie Trinchitella and the HBA meeting gave us a great excuse to be in the Boone
our lives.
Vice President, Region VI area.While the decision was right, I was wrong. It was definitely
Brian Robinett Mom and Dad who were in desperate need of a visit. As we
Vice President, Region VII made the drive from Marion to Boone that evening, I reflected back on the many experiences of
Erik Anderson this past year that I will only go through once in my life.
Vice President, Region VIII
I had the experience of grilling my daughter’s first official “boyfriend.” While I was striving
Darrel Hamilton for, in culinary terms, a “well-done crisp,” I believe I fell short and settled for “medium-well.” I also
experienced the emotion of my little girl’s heart being broken for the first time by this same boy. I
Vice President, Region IX
Kevin Annas saw the pain that for so many years I was able to protect her from, but I knew inside she needed to
experience this pain. There will be other boys, and I will be better next time in my grilling, partly
Vice President, Region X
Zac Koenig because I have seen the pain.
We also saw our little girl graduate from high school. Laura and I passed into a new phase of
Presidential Appointee
Elizabeth Cubler our lives that we felt was way premature, as we are too young to feel this old. I realized that our
daughter was prepared for this phase of her life even if we weren’t. Then came the week we took
Presidential Appointee
Larry Howard
her to Boone and moved her into a dorm and had to make the long, lonely drive home that was
reminiscent of her first day of kindergarten since both days included tears, sadness and separation.
Presidential Appointee I am happy to report that Amanda is doing well and her parents are getting a little better each day
Mike Gerber
knowing that we did our best to prepare her to make good and wise decisions as she embarks on
Chair, the journey of her own life.
Associate Members Committee
Tammie Smoot Through it all, I have grown this year and seen many parallels in my endeavor to survive the
“pain” that life brings. I have recognized that survival in all areas of our lives requires good and wise
President, EO/ES Council
Caroline Sutton decisions, a willingness to learn from our mistakes, and sometimes having to let go of things that
have become a big part of our lives. Amanda will always be my little girl and while I know I have
President,
Professional Women in Building
to let her go to become the woman she will become, I am very thankful for our many HBAs in the
Tammie Smoot western part of North Carolina that can give Laura and I an excuse to be driving through Boone
for a quick visit.
Frank
2   North Carolina Builder October 2009
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October 2009 North Carolina Builder   3


Capitol Insider
by Lisa Martin, NCHBA Director of Government Affairs

2009 legislative session successful for NCHBA


despite economic challenges

T
he North Carolina General Assembly • opposing a minimum wage increase,
adjourned just after noon on Tuesday, • opposing bills that would establish a state
Aug. 11, bringing to a close a very green building code and legislation that
challenging and, at least on budget issues, would allow local governments to enact
contentious session. The NCHBA Government their own energy codes,
Affairs staff was present • opposing bills banning mobile phone use
for every day of the 2009 while driving, and
session, working to protect • stopping local bills authorizing liberal
the interests of the home adoption of tree ordinance, transfer of
building industry. development rights and county authority to
While the state budget collect additional fees to fund cultural arts
dominated committee and recreation facilities.
Martin discussions and news reports, The success of NCHBA’s 2009 legislative
other battles waged. Issues such as annexation, a session would not have been possible without
smoking ban in public places, public campaign Rep. Margaret Dickson (D-Cumberland) poses the strong support of many individual legislators
financing, changes to the Beach Plan, a ban with HBA of Fayetteville Executive Officer Natalie in both chambers who defended the interests of
on texting while driving, railroad corridor Woodbury. Rep. Dickson was the primary sponsor of the home building industry on a variety of issues.
management, bullying in schools, revision of the builder inventory tax deferral bill. Highlights of the session are included in the
public school sex-ed curriculum and procedural chart appearing on page 12 entitled, “Top 2009
changes to cases involving the death penalty were and legislation that defers property tax on builder Legislative Issues.” The following summarizes
some of the hot topics deliberated by General inventory both passed and were signed into law the highlights of NCHBA’s efforts during the
Assembly members over the seven-month by the Governor. 2009 session by category of interest.
session. In addition, NCHBA was able to enact
A total of 2,767 bills were introduced in legislation that: Building code legislation
both the House and Senate. Because of the • requires cities, counties and sanitary districts NCHBA has consistently fought attempts by
wide range of issues affecting home builders, no to provide electronic notice of fee increases the General Assembly to unnecessarily amend the
other trade association is impacted by as many prior to their consideration; State Building Code. NCHBA works to develop
bills as NCHBA. Of the bills introduced this • clarifies the law regarding appeals of quasi- and support cost-effective and affordable building
session, 531, or 19 percent, affected or had the judicial land-use decisions; codes, standards, regulations and legislation.
potential to affect the residential construction • makes acceptable changes to the N.C. Beach While safety is our top priority, legislation must
industry. Despite this challenge, when the Plan; and be examined according to a cost-benefit analysis
General Assembly finally adjourned, it was clear • provides relief from costly, burdensome water and for practicality.
that NCHBA had achieved most of its legislative quality requirements in the Jordan Lake NCHBA worked with Rep. Jean Farmer-
goals. watershed. Butterfield (D-Wilson) and staff from the N.C.
The 2009 session was both an offensive NCHBA also supported an appropriation Department of Health and Human Services
and a defensive struggle. NCHBA’s Legislative of $10 million to the Housing Trust Fund and (DHHS) to craft HB 1151 Residential
Committee, under the leadership of Chairman positioned several bills for enactment in 2010. Lead-Based Paint Hazards/Renovations
Eric Beaver, directed staff to oppose any measure NCHBA priority bills eligible in 2010 include (enacted as S.L. 2009-488), which establishes
that would adversely affect the home building bills to stop moratoria abuse and to limit a state program for certification of persons
industry. As a result, most of the bills opposed developer responsibility for street and highway performing renovation work in homes where
by NCHBA were stopped or amended to make construction. lead-based paint is present. NCHBA received
them acceptable. More importantly, NCHBA In addition to a proactive agenda, NCHBA assurances from DHHS that the fees authorized
was successful on offense as all of our proactive was successful on defense: in this bill are considerably less than the federal
priorities for 2009 were enacted or remain • stopping requirements for photoelectric program, and following the recommendation
eligible for consideration in 2010. In spite of smoke detectors, of the NCHBA Regulatory Affairs Committee,
the economic downturn and a “nonbusiness- • stopping requirements for builders to use the NCHBA supported a state certification program
friendly” atmosphere, NCHBA achieved federal E-verify system, as opposed to a federal one.
more success than any other industry or trade • vigorously opposing two bills authorizing NCHBA vigorously opposed HB 1125
association. use of tax dollars for campaign financing, Require Photoelectric Smoke Detectors,
Topping the list of NCHBA’s successes are • opposing four workers’ compensation bills which would require photoelectric smoke
two bills that directly affect builder members. that would have significantly increased the detectors to be used in new or renovated homes
Legislation that extends state and local permits, cost of workers’ compensation premiums, or when homes are sold. Using information
4   North Carolina Builder October 2009
provided by NCHBA Director of Codes and
Construction Robert Privott, NCHBA was able
to convince the bill sponsor to remove the bill
from committee consideration this session.
NCHBA supported HB 749 Use of
Cisterns in Construction/Renovation
(enacted as S.L. 2009-243), introduced by Rep.
Kelly Alexander (D-Mecklenburg). This bill
directs the state Building Code Council to adopt
rules allowing the use of cisterns for flushing
toilets and for outdoor irrigation.
NCHBA also supported HB 1409 Building
Code Exclusion/Certain Wiring (enacted
as S.L. 2009-532), introduced by Rep. Carolyn Sen. Dan Clodfelter (D-Mecklenburg) (center) meets
Justice (R-Pender).The bill provides that a permit with constituents Tom Pearson, Bill Daleure and Rick
shall not be required for repair or replacement and Cathy Judson. Sen. Clodfelter sponsored the
of electrical lighting fixtures or devices or for permit extension bill in the Senate.
the connection of an existing branch circuit to
an electric water heater that is being replaced, introduced by Sen. Doug Berger (D-Franklin) committee consisting of coastal and other
provided that the replacement water heater is that would allow the employee to choose their legislators and insurance industry representatives.
placed in the same location and is of the same physician regardless of cost; and SB 930 Workers’ The committee met bimonthly after the close
or less capacity and electrical rating as the Comp/Firefighter Occupational Diseases of the 2007-2008 session and crafted a series of
original and that the electrical lighting device introduced by Sen. Doug Berger (D-Franklin) recommendations that were subsequently put
replacement is with a fixture or device having that would create a presumption that certain into legislation.
the same voltage and the same or less amperage infectious diseases, hypertension, heart disease Following the recommendation of NCHBA’s
as the original. and certain cancers are occupational diseases Legislative Committee, as the bill moved through
for firefighters and are covered by the Workers’ the House Insurance and House Finance
Construction and Compensation Act. The latter bill would set a committees, we were able to amend the bill
business legislation bad precedent for later workers’ compensation more favorably and the bill passed second and
NCHBA is made up primarily of small claims. None of these bills made the crossover third reading in the House by a large margin.
business owners; therefore, the association is deadline, thus they are presumed ineligible for HB 1305 finally was heard in the assigned Senate
concerned about the wide range of issues that consideration in the short session. committee in the last few days of session. As in
face the business community in general.NCHBA The one workers’compensation bill supported the House, HB 1305 pitted legislators from the
is particularly concerned about issues that are by NCHBA and other business interests was east against legislators from the west.
unique to the construction industry, including introduced in the House by Rep. Bruce Goforth In the Senate, NCHBA worked on the
containing the cost of workers’ compensation (D-Buncombe) and in the Senate by Sen. Tom last remaining issue, the cap on coverage. The
insurance and other insurance-related issues. Apodaca (R-Henderson). The bill, HB 1022/ House approved lowering the existing coverage
Home building requires a well-trained and SB 975 Workers’ Comp/Duration of Total limit of $1.5 million to $750,000, which was
readily available workforce, which NCHBA Disability, would limit an employee entitled to the recommendation of the select committee.
believes should be addressed through improved receive disability compensation services to either NCHBA vigorously opposed this reduction.
education and vocational training. Continuing 65 years of age or 300 weeks from the date of The Senate Commerce Committee raised
education/accreditation and licensure issues are injury, whichever is longer. While NCHBA and the coverage limit to $1 million, but when
also important to our members. a coalition of business interests worked hard to the bill was on the Senate floor for a vote, an
Five workers’ compensation bills were advance the House bill, it was re-referred to amendment was proposed by Sen. Phil Berger
introduced this session and NCHBA opposed the House Judiciary II Committee right before (R-Rockingham) that put the limit back to the
four of the five. Bills opposed would have the crossover deadline; thus, it is technically not $750,000 approved by the House. In spite of
significantly increased premiums for builders and eligible for consideration next year. However, a lobbying by NCHBA and the North Carolina
were bad for small business in general. NCHBA provision in HB 945 The Studies Act of 2009 Association of Realtors, the lower limit imposed
opposed the following bills: HB 805 Workers’ authorizes a Legislative Research Commission in the House was restored.
Comp/Calculation of Income introduced (LRC) study of the issues related to the duration Overall, NCHBA was able to successfully
by Rep. Rick Glazier (D-Cumberland), which of compensation for temporary total disability. amend the bill to incorporate the NCHBA
would have counted an employer’s contributions The LRC may recommend legislation, and thus Legislative Committee’s recommendations into
to an employee’s retirement account in the a similar bill could be introduced and would be the final bill.The final bill requires:
calculation of “average weekly wage”; HB eligible in the short session. • the accumulated surplus of the Beach Plan
843 Workers’ Comp/Medical Diagnostic One highly contentious bill, HB 1305 be retained;
Testing introduced by Rep. Darren Jackson Beach Plan Changes, (enacted as S.L. 2009- • locks surcharges in at the current rate of
(D-Wake), which carries a high potential for 472), introduced by Rep. Hugh Holliman 5 percent for wind and hail coverage and
abuse as it would require the employee’s physician (D-Davidson), took a number of twists and 15 percent for full homeowners policies
to choose the provider of diagnostic services; SB turns during the session. The topic of Beach (not applicable to dwelling and commercial
781 Workers’ Comp/Choice of Physician Plan stabilization was examined by a select (See CAPITOL INSIDER on page 6)

October 2009 North Carolina Builder   5


Capitol Insider consecutive years. This would include adding
career clusters with work experience courses and
about the bill, and consequently, the bill did not
get out of the Senate.
(continued from page 5)
technical training. This bill remains eligible for Additionally, NCHBA opposed three bills
policies); consideration in the short session. related to public financing of elections because
• states that the higher Beach Plan deductible NCHBA also joined a coalition of business they are an ill-advised use of tax dollars and could
(1 percent statewide) applies only if there is a interests to work on bills that affect business be a restriction on free speech. Neither SB 938
named storm event; in general and small business specifically. An Municipal Public Campaigns introduced
• applies mitigation credits to both the Beach important bill to businesses across the state is by Sen. Don Davis (D-Greene) nor SB 966
Plan and the voluntary market; HB 813 Uniform Apportionment of Tort Expand Voter-Owned Elections introduced
• enacts a payment installment plan; Responsibility introduced by Rep. Rick by Sen. Martin Nesbitt (D-Buncombe) were
• reduces maximum contents coverage to Glazier (D-Cumberland).This bill would replace reported favorably out of their respective
40 percent of the replacement value of the current use of contributory negligence with Senate committees. However, HB 120 Public
the structure (currently 70 percent) and a a system of comparative fault in personal injury Municipal Campaigns did pass the House and
corresponding premium decrease; and cases.While there is a trend nationwide for using remains eligible for consideration. NCHBA will
• authorizes the member companies to be comparative fault, the concern is the additional continue to watch for and oppose all efforts to
assessed up to $1 billion in the event that cost to small businesses for liability protection. expand public campaign financing.
losses to the Beach Plan exceed available This bill passed the House and is eligible for
surplus, reinsurance and other funding Senate consideration in the short session. Environment and
sources, followed by a “catastrophe recovery NCHBA was instrumental in defeating a land-use legislation
charge” not to exceed 10 percent of the proposal that would require all employers to use When considering environmental protection
annual policy premium on policies written the federal E-Verify system. SB 32 Employers measures, NCHBA urges lawmakers to consider
statewide. Must Use Federal E-Verify Program economic costs as well as environmental
In addition, there were significant introduced by Sen. John Snow (D-Cherokee) benefits; urges environmental agencies to base
accountability/disclosure requirements added failed to receive a favorable report from the requirements on sound science; supports just and
such as a study of all aspects of the Beach Plan’s Senate Appropriations Committee, due in large timely compensation to private property owners
operation and the insurance ratemaking process, part, to NCHBA’s work on the bill. NCHBA when land acquisition or restriction is necessary;
annual audits, public notice for an increase in opposed the bill, not for what it attempted to and prevails upon agencies to remain within
rates and to evaluate and revise rate territories do, but because the federal E-Verify system as their statutory authority when making rules. It is
to provide more fairness in the establishment of it exists today is unreliable. NCHBA asked the important to recognize that growth is absolutely
rates. sponsor to phase in the E-Verify requirement for necessary for a healthy economy.
NCHBA strongly supports maintenance and small businesses, to provide liability protection In spite of the recent economic downturn,
expansion of vocational education programs in case the system gave an incorrect response, North Carolina is still growing, albeit more
across the state. As such, HB 1176 Reorganize and to delay implementation until the federal slowly than in the past. Builders respond to
Schools with High Dropout Rate introduced by government established a firm policy on housing demand—we do not create the market.
Rep. Lorene Coates (D-Rowan) was supported immigration. The sponsor was willing to work NCHBA supports planning and broad-based
by NCHBA.This bill would require local school with NCHBA and other business groups, but funding for infrastructure improvements and also
boards to reorganize high schools that have a only to make changes to the bill when it crossed supports the revitalization of older suburban and
graduation rate of less than 60 percent for two over to the House. Many Senators had concerns inner-city housing markets.
One of the highlights of this session was
Mike Carpenter, Rick Judson, Sen. David Hoyle the passage of SB 831 Extend Certain
(D-Gaston), Lieutenant Governor Walter Dalton Development Approvals introduced at
(D-Rutherford), and Lucille Dalton pause for a photo. NCHBA’s request by Sen. Dan Clodfelter
(D-Mecklenburg). The bill extends certain
permits, certifications and approvals at both the
state and local level until at least Dec. 31, 2010.
The bill was signed by the Governor on Aug. 5,
2009 and became Session Law 2009-406.
Two additional bills were subsequently passed
that clarify parts of this session law. The first is
SB 838 Amendments to Environmental
Laws 2009 (enacted as S.L. 2009-484), which
adds that a person may voluntarily surrender a
permit that is “resurrected” or extended due
to the passage of SB 831. The second bill, HB
1490 Land Development Permit Changes
(enacted as S.L. 2009 572), (introduced originally
at NCHBA’s request by Rep. Ty Harrell
(D-Wake) as the House companion to SB 831)
contains language that specifies a process for
local governments to follow when the extended

6   North Carolina Builder October 2009


Rep. Julia Howard (R-Davie) (sixth), Sen. David Hoyle
(D-Gaston) (seventh), Sen. Jim Forrester (R-Gaston
(sixth from right), Rep. Grey Mills (R-Iredell) (fourth from
right) and Rep. Darrell McCormick (R-Yadkin) (right)
pose for a group picture at NCHBA Legislative Day.

or “resurrected” permits cause a water or sewer


capacity problem.
If awards were given for the most bills in-
troduced on one issue, the winner for the 2009
session would be annexation reform. At least 22
bills, including local and statewide bills, were
introduced for the purpose of changing North
Carolina’s annexation laws. Two statewide and
four local bills proposed annexation moratoria;
four bills required a referendum before the an-
nexation could be completed; four required
proof that the annexing municipality was provid-
ing “meaningful services” to the annexation area;
and the rest were complete overhauls of current
annexation procedures and requirements.
Supporters of annexation reform were vocal
and visible the entire session.Numerous rallies were
held and committee hearings on all the bills were let us help you
grow your
standing-room only.The most contentious issues business .
pertained to involuntary annexations. NCHBA Visit one of
generally supports annexation and supported the these locations :

N.C. League of Municipalities (NCLM) in the


reform provisions they were willing to accept.
Stop Fishing Around.
Charlotte, NC 28206
(704)377-5443 (800)438-5908
Both NCHBA and NCLM opposed all bills Fax(704)376-3559
dealing with annexation referenda. However,
elizabeth City, NC 27909
Once You See Our Products
there were other reforms that were incorporated (252)338-2737 (800)841-0408 You'll be Hooked!
into HB 524 Annexation-Omnibus Changes Fax(252)338-3123

that NCHBA did not oppose. Unfortunately, an Fayetteville, NC 28306


(910)483-3360 (800)542-7448
amendment was added to the bill in committee Fax(910)483-3499 That’s because Norandex Building Materials Distribution
that did require a referendum.The bill is eligible
FletCher, NC 28732 offers builders the largest selection of top name, top quality
for consideration next session, and we will assist (828)654-8953 (888)809-8181
exterior building products.
NCLM in attempting to remove that provision. Fax(828)654-8957

In an effort to curb the abuse of moratoria GreeNsboro, NC 27406 Our name is catching on with leading builders around the
provisions incorporated in the 2005 rewrite (336)273-8681 (800)722-2200
country because we offer value, unmatched service, and
Fax(336)273-0521
of North Carolina’s planning and zoning strongly back every product we sell.
hiCkory, NC 28601
statutes, SB 117 Clarifying Development (828)322-7080 (800)236-5607
Moratoria Authority was introduced by Sen. Fax(828)322-7274
See us for:
David Hoyle (D-Gaston) at NCHBA’s request. SIDING & SOFFIT WINDOWS SKYLIGHTS
New berN, NC 28560
While this bill was opposed by the N.C. League (252)672-8900 (800)548-1610 DOORS STORM PRODUCTS VINYL FENCE
Fax(252)672-8904 GUTTERS & DOWNSPOUTS SHUTTERS
of Municipalities, the N.C. Association of
County Commissioners and the N.C. Chapter raleiGh, NC 27603 SPECIALTY ROOFING ACCENT PRODUCTS
(919)772-6220 (800)262-1394
of the American Planning Association, it received Fax(919)772-8782
DECK & RAIL MANUFACTURED STONE and MORE!
overwhelming support in the Senate Commerce
rural hall, NC 27045 Norandex. When you hook-up with us you’re landing what
Committee and on the Senate floor. (336)969-2201 (800)633-0842
Fax(336)969-2301
you’ve always wanted in an exterior building
SB 117 simply states that cities and counties
products supplier.
may not use moratoria for the sole purpose wilmiNGtoN, NC 28405
(910)815-0501 (888)868-4695
of writing or adopting plans and ordinances. Fax(910)815-0105
The bill sponsor attempted to calendar the bill
wiNterville, NC 28590
in the House Commerce Committee, but was (252)321-5632 (888)643-0120
informed that Speaker of the House Joe Hackney Fax(252)321-5682

(D-Chatham), presumably at the request of his


home county, put a hold on the bill. It is still www.norandex.com
eligible to be heard next session, and NCHBA
(See CAPITOL INSIDER on page 8)

October 2009 North Carolina Builder   7


Capitol Insider Construction/Developer Responsibility was
introduced by Sen. Harry Brown (R-Onslow)
(continued from page 7)
and would limit developer responsibility for street
will work very hard to resolve issues with the and highway construction to the proportional
opposing parties and move the bill through the amount necessary to serve projected traffic
House. generated by the development. This bill passed
NCHBA tracked several bills pertaining to through the Senate and remains eligible for
local planning and zoning. SB 44 Appeals of consideration in the short session.
Quasi-Judicial Land Use Decisions (enacted NCHBA supported HB 569 DWQ/
as S.L. 2009-421) has been introduced in at least Bridge and Culvert Standards (enacted
two previous sessions and sets forth the procedures as S.L. 2009-478), introduced by Rep. Pryor
for land use permit appeals. NCHBA opposed Gibson (D-Anson), which directs the N.C.
the bill in previous sessions, but worked with Rep. Ric Killian (R-Mecklenburg) speaks on the Department of Natural Resources (DENR)
the bill sponsor, Sen. Ellie Kinnaird (D-Orange), House floor. to allow the use of three-sided open bottom
and stakeholders to ensure that the rights of or bottomless culverts on private property.
builders and developers were not compromised. and other groups vigorously opposed the This bill, introduced in at least one previous
Ultimately, a compromise bill was agreed upon unnecessarily stringent and costly requirements session, originally allowed these culverts for
by all parties, and NCHBA actively supported the in this bill, and subsequently, the bill was never all driveway access, but DENR was reluctant
bill as it moved through the House and Senate. heard in committee. Some provisions of the bill to agree to a blanket approval. NCHBA hopes
NCHBA also strongly opposed local bills that were included as one of the studies authorized by that eventually these culverts will be allowed in
would have resulted in extraordinary authority HB 945 The Studies Act of 2009. public right-of-way.
to regulate land use. The towns of Cornelius, In the waning days of the session, SB 968 Railroad corridor management has been the
Davidson and Huntersville attempted to expand Mountain Resources Planning (enacted topic of several bills in past sessions; however,
their authority to adopt ordinances regulating as S.L. 2009-485), introduced by Sen. Joe Sam those bills never moved through committee.
the planting, removal and preservation of trees on Queen (D-Haywood) managed to pass through This session, at the request of the North Carolina
private property in HB 771Towns/Ordinances both the Senate and the House. This bill will Railroad Co., CSX and Norfolk Southern, Reps.
Regulating Trees introduced at the towns’ create a Mountain Resources Commission to Ray Rapp (D-Haywood), Margaret Dickson (D-
request by Rep. Thom Tillis (R-Mecklenburg). identify issues affecting western North Carolina Cumberland) and Ronnie Sutton (D-Robeson)
NCHBA soundly defeated this bill in the House and will specifically address “growth that protects introduced HB 116 Railroad Corridor Man-
Local Government I committee, thus preventing resources.” NCHBA will be closely monitoring agement, which proposed changes to the state
its eligibility in the short session. this new commission and the associated law concerning railroad corridor management,
NCHBA opposed two bills granting authority technical advisory committees to ensure that the protection, expansion and mapping. Unlike the
for Transfer of Development Rights (TDR). Commission does not become the vehicle to previous sessions, railroad corridor management
Currituck County requested TDR authority in implement costly, unnecessary regulatory hurdles got some momentum in 2009.
HB 954 Currituck Development Rights for builders and developers. NCHBA is also The House Select Committee on a
introduced by Rep. Bill Owens (D-Currituck) concerned that this Commission will attempt to Comprehensive Rail Service Plan for North
at the county’s request. NCHBA was successful implement steep slope requirements or attempt Carolina held a number of public meetings
in defeating this bill in the House Local to get yet another steep slope bill introduced. between the 2008 and 2009 sessions in an effort
Government II Committee. The second TDR NCHBA also monitored SB 1068 to resolve the issues of affected parties. NCHBA
request came from Chatham County in SB 547 Permitting of Wind Energy Facilities attended the meetings, but our issues were not
Chatham TDR introduced by Sen. Bob Atwater introduced by Sen. Steve Goss (D-Watauga), resolved. NCHBA opposed the bill in the House
(D-Chatham). This bill was heard in the Senate which sets out information required for Transportation Committee and the House
State and Local Government Committee at consideration of a wind energy facility permit Judiciary III Committee. Eventually, the bill
the request of the bill sponsor. Due to strong application, including studies on noise impacts, sponsors were amenable to making changes that
opposition from NCHBA and the N.C. Farm shadow flicker impacts, avian and bat impacts, and would better protect developers from having to
Bureau, a vote was never taken on the bill. The viewshed impacts and establishes an application get approval from the railroad companies prior
General Assembly did authorize a Legislative fee of $2,000. This bill passed the Senate and is to local government approval. NCHBA did
Research Commission study of TDR in both eligible for consideration in the short session. not oppose the compromise bill that passed the
Currituck and Chatham Counties as part of HB As stated earlier, NCHBA supports House, and HB 116 is eligible for consideration
945 The Studies Act of 2009. broad based measures to fund infrastructure in the Senate next year.
NCHBA vigorously opposed steep slope improvements and thus supported HB 148 Finally, it wouldn’t be a General Assembly
requirements in previous legislative sessions, and Congestion Relief/Intermodal Transport session without NCHBA’s involvement in water
as expected, a bill was introduced again in 2009. Fund (enacted as S.L. 2009-527), introduced quality issues! This year the battle was for more
HB 782 Safe Artificial Slope Construction by Reps. Becky Carney (D-Mecklenburg) and reasonable water quality rules in the Jordan Lake
Act introduced by Rep. Ray Rapp Deborah Ross (D-Wake). This bill authorizes watershed. In May 2008, the Environmental
(D-Haywood) would require local governments cities and counties across the state to raise sales Management Commission (EMC) approved
to adopt ordinances and regulate site planning, tax by a half-cent, subject to approval by voters, 189 pages of rules for the watershed that were
design and construction of artificial slopes in to fund regional mass transit. technically complex, prohibitively expensive,
mountainous areas and require disclosure of Two other bills pertaining to transportation based on marginal science, and difficult to comply
slope information to property buyers. NCHBA were supported by NCHBA. SB 761 Street with. Thanks to the efforts the Triad Real Estate

8   North Carolina Builder October 2009


and Building Industry Coalition (TREBIC), David Hoyle (D-Gaston) and Rep. Michael
which is comprised of members and local Wray (D-North Hampton); HB 663 North
HBAs in the Greensboro area as well as the local Carolina Ten in Ten Plan introduced by Rep.
governments tasked with implementing the rules, Ric Killian (R-Mecklenburg); and SB 818 New
more reasonable rules will be implemented. or Existing Home Purchase Tax Credit
NCHBA supported HB 239 Restore introduced by Sen. David Rouzer (R-Johnston).
Water Quality in Jordan Reservoir (enacted The same budget woes that stopped
as S.L. 2009-216), introduced by Rep. Lucy Allen enactment of home buyer tax credit legislation
(D-Franklin).While HB 239 did take care of the also stopped enactment of energy efficiency and
existing development rule and other issues, it did green building tax credits. NCHBA appreciates
not address the unreasonable nutrient buydown the additional lobbying and legislator education
limits developers would have to meet if the effort put forth by the NCHBA Green Building
EMC’s rules went into effect. At the request of Council and remains optimistic that in better
NCHBA and TREBIC, combined with support budget times the momentum is on our side to
from DENR, Rep. Allen introduced a provision get these important incentives in place. NCHBA
into SB 838 Amendments to Environmental Rep. Ty Harrell (D-Wake) addresses members supported SB 147/HB 504 Tax Credit for
Laws 2009 (enacted as S.L. 2009-484), that at a Raleigh-Wake HBA meeting, where he was Energy Efficient Homes introduced by Sen.
corrected the Jordan Lake nutrient buydown recognized for sponsoring the permit extension bill in A.B. Swindell (D-Nash) and Reps. Susan Fisher
limits such that the water quality results are the the House of Representatives. (D-Buncombe), Pricey Harrison (D-Guilford),
same, but required treatment could take place Bruce Goforth (D-Buncombe) and Ruth
off-site. state in the nation to include affordable housing Samuelson (R-Mecklenburg).
Water quality, this time in the Falls Lake as a protected class in its fair housing law. While this tax credit was not included in
reservoir, was the topic of SB 1020 Improve One of NCHBA’s priority issues was deferral the recommendations forwarded to the House
Upper Neuse Basin Water Quality (enacted of tax on builders’ inventory, and HB 852 Defer Finance Committee by the House Energy and
as S.L. 2009-486), introduced at the request of Tax on Builders Inventory was introduced Energy Efficiency Committee, a provision was
the city of Raleigh by Sen. Josh Stein (D-Wake). by Rep. Margaret Dickson (D-Cumberland). added to HB 945 The Studies Act of 2009
NCHBA was initially opposed to this bill, but This bill allows the deferral of the portion of that authorizes broad examination of renewable
was able to work with the sponsor, the HBA tax imposed on real property that represents energy and alternative fuel tax credits, including
of Durham, Orange and Chatham Counties the increase in property value attributable to incentives for energy conservation.
and other stakeholders to craft an acceptable construction of a residence on the property. HB
compromise that did not impose burdensome 852 was enacted as Session Law 2009-308 and Conclusion
requirements for builders and developers. becomes effective in January 2010. In spite of this challenging time for the
NCHBA, assisted by the Wilmington-Cape economy and for businesses, the 2009 session will
Tax and revenue legislation Fear HBA, actively pursued requirements for be remembered as one of the most successful for
NCHBA supports efforts to increase hous- local governments and sanitary districts to notify NCHBA.The secret to NCHBA’s success was, is
ing opportunities and opposes any proposal the public of their intentions to raise fees. In and always will be the visionary leadership of its
that unnecessarily increases the cost of housing. spite of considerable pushback from the N.C. officers, the hard work of its legislative lobbying
NCHBA encourages passage of tax credits for League of Municipalities and N.C. Association team, the support of its members, the legitimacy
energy-efficient homes and tax incentives for of County Commissioners, SB 698 City/ of the cause, and the invaluable help of Senators
home ownership. NCHBA strongly supports County/Sanitary District Fees/Internet, and Representatives who champion the cause of
green building and incentives for both home was introduced at our request by Sen. Julia the home building industry in North Carolina.
builders and home buyers. In keeping with our Boseman (D-New Hanover). This bill requires In times of economic stress, it is all the more
long standing support of initiatives that support cities, counties and sanitary districts that have important that NCHBA and its members remain
affordable housing, NCHBA applauds General a Web site to post notice on that site of their vigilant to guard against those who, however well-
Assembly for the appropriation of $10 million to intention to increase fees at least seven days in intentioned, would impose additional barriers to
the North Carolina Housing Trust Fund. advance of the meeting where the increase is homeownership and to ensure that our friends
NCHBA also strongly supported SB 810 first discussed. After much negotiation, all parties in the General Assembly remain in office and
Affordable Housing/No Discrimination eventually agreed on the bill and it was enacted occupy positions of leadership and responsibility.
(enacted as S.L. 2009-533), introduced by Sen. as Session Law 2009-436. You can help preserve home ownership and the
Floyd McKissick (D-Durham).This bill makes it NCHBA was pleased to see a number viability of the residential construction industry by
a violation of the North Carolina Fair Housing of bills introduced that would provide a tax being a BUILD-PAC contributor, participating
Act to discriminate in land-use decisions credit to buyers of either a new or existing in NCHBA’s Legislative Conference in 2010,
or permitting if the development contains home. Unfortunately, the state’s $1.4 billion and taking the time to be a “legislative contact”
affordable housing for families or individuals budget deficit prevented any of these provisions locally on issues that affect the home building
below 80 percent of area median income, among from being enacted. NCHBA appreciates the industry.
other criteria.The bill does allow decisions to be efforts of a number of home building industry Together, NCHBA and its members have
based on considerations of over-concentration champions in the legislature who introduced made and will continue to make a difference
of affordable housing and other criteria such or co-sponsored tax credit legislation. NCHBA for future generations of North Carolinians
as traffic and environmental concerns. This is supported the following bills: SB 912/HB 1240 striving to attain the American dream of
landmark legislation, as North Carolina is the first Home Purchase Stimulus introduced by Sen. homeownership!

October 2009 North Carolina Builder   9


TOP 2009 LEGISLATIVE ISSUES

O
ur Government Affairs staff actively monitored 531 “new” bills introduced into this year’s “long” session. Because the resi-
dential construction industry has so many diverse interests that can be affected by legislation, this total represents 19 percent
of the entire number of “new” bills (2,767) introduced. The following compilation summarizes the top legislative issues of
interest to NCHBA and is organized by category, bill number, short description, NCHBA position, and disposition. THE
NUMERICAL LISTING IS BY CATEGORY AND NOT BY ORDER OF PRIORITY. For more detailed information about these
or other bills not included, please contact NCHBA at (800) 662-7129.

Bill Number/Short Title/Description NCHBA Position DISPOSITION


I. Building Code
1. H 749 Use of Cisterns in Construction/Renovation—Directs Supported by NCHBA. Enacted (S.L. 2009-243)
the state building code to allow the use of cisterns in construction
and to be used for flushing toilets and outdoor irrigation.

2. H 1151 Res. Lead-Based Paint Hazards/Renovations— Worked with bill sponsor to ensure the Enacted (S.L. 2009-488)
Establishes a state program that meets EPA requirements for state program was not more stringent than
certification of persons performing lead-based paint renovation federal requirements. As amended, supported
work in certain residential housing where children are present. by NCHBA.

3. H 1125 Require Photoelectric Smoke Detectors— NCHBA strongly opposed legislation and Stopped. Presumed ineligible for 2010.
Requires photoelectric smoke detectors be used in new or convinced sponsor not to calendar bill for
renovated homes or when homes are sold. The code would consideration.
require the installation of either battery operated or electrical
smoke detectors in every dwelling unit that is either used as
rental property, or that contains a fossil fuel-burning heater or
appliance, fireplace or an attached garage.

4. H 1409 Building Code Exclusion/Certain Wiring— Supported by NCHBA. Enacted (S.L. 2009-532)
Provides that a permit shall not be required for repair or
replacement of electrical lighting fixtures or devices or for the
connection of an existing branch circuit to an electric water
heater that is being replaced, provided that the replacement
water heater is placed in the same location and is of the same
or less capacity as the original and that the electrical lighting
device replacement is with a fixture or device having the
same voltage and the same or less amperage as the original.

II. Construction and Business


5. H. 1176/S. 424 Reorganize Schools with High Dropout Supported by NCHBA. Passed House. Eligible for consideration
Rate— Requires local school boards to reorganize high in 2010.
schools that have a graduation rate of less than 60% for two
consecutive years. Includes adding career clusters with work
experience courses and technical training.

6. H. 813 Uniform Apportionment of Tort Responsibility NCHBA opposed. NCHBA is working with Passed House. Eligible for consideration
—Would replace the current use of contributory negligence a coalition of business interests to defeat or in 2010.
with a system of comparative fault in personal injury cases. reasonably modify this bill in 2010.

7. S. 32 Employers Must Use Federal E-Verify Program— Opposed by NCHBA. Stopped. Presumed ineligible for
Requires all employers to use federal E-Verify system. Contains consideration in 2010.
substantial penalties for non compliance.

8. H. 1305 Beach Plan Changes—Addresses concerns regarding NCHBA successfully lobbied for several Enacted (S.L. 2009-472)
Beach Plan insurance availability. Requires accumulated surplus significant changes to the legislation in
of the Beach Plan to be retained; locks surcharges in at both the House and Senate.
current rate; applies higher Beach Plan deductible only if there
is a named storm; applies mitigation credits to Beach Plan and
voluntary market; enacts an installment plan; reduces maximum
contents coverage to 40% with corresponding premium
decrease; authorizes member company assessments up to $1
billion if Beach Plan losses exceed available surplus, reinsurance
and other funding sources and sets maximum coverage limit
for homeowners and dwelling policies at $750,000. H. 120 passed House. Presumed eligible
for consideration in 2010. Stopped
9. H. 120 Public Municipal Campaigns, S. 938 Municipal NCHBA strongly opposed these bills. Senate Bills. Presumed ineligible for
Public Campaigns and S. 966 Expand Voter-Owned consideration in 2010.
Elections—Expands the offices eligible for public financing.

10. H. 1022/S. 975 Worker’s Comp/Duration of Total Supported by NCHBA. Did not pass; however, authorization for
Disability—Limits an employee’s entitlement to receive a Legislative Research Commission study
disability compensation services to either 65 years of age or of these issues was included in the
300 weeks from the date of injury, whichever is longer. Studies Act of 2009.

10   North Carolina Builder October 2009


TOP 2009 LEGISLATIVE ISSUES
Bill Number/Short Title/Description NCHBA Position DISPOSITION
II. Construction and Business
11. H. 805 Workers’ Comp/Calculation of Income, H. 843 NCHBA strongly opposed all of these bills. Stopped. Presumed ineligible for
Workers’ Comp/Medical Diagnostic Testing, S. 781 consideration in 2010.
Workers’ Comp/Choice of Physician, S. 930 Workers’
Comp/Firefighter Occupational Diseases—All include
workers compensation requirements that would significantly
increase insurance premiums.

III. Tax and Revenue


12. H. 176/S. 125 Housing Trust Fund Appropriation Strongly supported by NCHBA. Appropriation included in S.L 2009-451.
(Appropriations Act of 2009)—Appropriates $10 million to
the N.C. Housing Finance Agency.

13. S. 810 Affordable Housing/No Discrimination—Makes it Strongly supported by NCHBA. Enacted (S.L. 2009-533)
unlawful to discriminate in land-use decisions or in permitting
of development based on the fact that a development contains
affordable housing units for families/individuals with incomes
below 80% of the area’s medium income.

14. S. 447 No Monetary Exaction for Development— Introduced at the request of and strongly Currently held in Senate Finance
Clarifies that a local government may not impose a tax, fee supported by NCHBA. Committee.
or monetary contribution for development or a development
permit that is not specifically authorized by law.

15. S. 698 City/County/Sanitary District Fees/Internet— Introduced at the request of and strongly Enacted (S.L. 2009-436)
Requires entities to post notice at least seven days in advance supported by NCHBA.
of the discussion of new fees or increases on their website.

16. H. 1240/S.912 Home Purchase Stimulus, H. 663 North Strongly supported by NCHBA. Not included in Appropriations Act of
Carolina Ten in Ten Plan, S. 818 New or Existing 2009.
Home Purchase Tax Credit—Various tax credits for the
purchase of new or existing homes in North Carolina

17. H. 1385 Water Conservation Tax Credits/Reforms, H. Supported by NCHBA. Study of renewable energy and
1596 Tax Credit/Water Con. Products and Property, H. alternative fuel tax credits, including
504/S. 147 Tax Credit for Energy Efficient Homes— incentives for energy conservation,
Various tax credits for purchase or installation of energy authorized in Studies Act of 2009.
efficient products and for construction of energy efficient
homes.

18. H. 852 Defer Tax on Builders Inventory—Allows Introduced at the request of and strongly Enacted (S.L. 2009-308)
deferral of the portion of tax imposed on real property that supported by NCHBA.
represents the increase in value of the property attributable to
improvements resulting from the construction of a residence on
the property.

19. H. 1431 Repeal Land Transfer Tax, S. 915 Repeal Supported by NCHBA. Bills were not calendared in assigned
County Land Transfer Tax—Repeals 2007 Session committees.
authorization of county referendum for 0.4% land transfer tax.

IV. ENVIRONMENT AND Land Use


20. S. 866 APA Rules: Increasing Costs Prohibition— Supported by NCHBA. Passed Senate. Eligible for consideration
Prohibits agencies from adopting rules that result in additional in 2010.
costs to persons subject to the rule.

21. H. 524 Annexation – Omnibus Changes—Makes Most provisions supported by NCHBA. Passed House. Eligible for consideration
significant changes to North Carolina annexation laws. Amendments needed in short session. in 2010.

22. S. 1068 Permitting of Wind Energy Facilities—Sets Monitored by NCHBA. Passed Senate. Eligible for consideration
out information required for consideration of a wind energy in 2010.
facility permit application and establishes $2,000 application fee.

23. S. 831 Extend Certain Development Approvals, H. 1490 Introduced at the request of and strongly Enacted (S.L. 2009-406 and S.L. 2009-
Land Development Permit Changes—Extends certain supported by NCHBA. 572)
permits and approvals affecting land development superseding
all statutory and regulatory requirements. H. 1490 contains
clean-up language that specifies a process for local governments
to follow when the extended or “resurrected” permits cause a
water or sewer capacity problem.

(See TOP ISSUES on page 12)

October 2009 North Carolina Builder   11


TOP 2009 LEGISLATIVE ISSUES
Bill Number/Short Title/Description NCHBA Position DISPOSITION
IV. ENVIRONMEnt AND Land Use
24. H. 782 Safe Artificial Slope Construction Act—Requires NCHBA opposed these unnecessarily Stopped. Eligible to be studied.
local governments to adopt ordinances and regulate site stringent and costly requirements.
planning, design and construction of artificial slopes in
mountainous areas; directs Sedimentation Control Commission
to assist local governments in implementing safe slope
construction programs; requires slope information disclosure to
property purchasers. H. 954 stopped in House Local Government
II Committee. S. 547 remains in Senate State
25. H. 954 Currituck Development Rights, S. 547 Chatham NCHBA strongly opposed these bills. & Local Government Committee. TDR
TDR—Authorizes the transfer of development rights from study for Currituck and Chatham counties
sending zones to receiving zones. authorized in Studies Act of 2009.

26. S. 117 Clarifying Development Moratoria Authority— Introduced at the request of and strongly Passed Senate. Eligible for consideration
Clarifies that a local government may not impose a moratorium supported by NCHBA. in 2010.
on development approvals for the purpose of developing and
adopting a new or revised development ordinance.

27. S. 968 Mountain Resources Planning—Creates Mountain Monitored by NCHBA. Enacted (S.L. 2009-485)
Resources Commission to identify issues affecting western NC.

28. H. 116 Railroad Corridor Management—Relates to NCHBA opposed introduced bill. Passed House. Eligible for consideration
management, protection and expansion of railroad corridors, Compromise bill supported by NCHBA. in 2010.
it defines “railroad corridor” and sets up requirements for
mapping such corridors and abandonment certificates.

29. S. 44 Appeals of Quasi-Judicial Land Use Decisions— NCHBA opposed introduced bill. NCHBA Enacted (S.L. 2009-421)
Sets forth procedures for land use permit appeals from quasi- worked with bill sponsor and stakeholders
judicial decisions. and supported compromise bill.

30. H. 148 Congestion Relief/Intermodal Transport Fund— Compromise bill supported by NCHBA. Enacted (S.L. 2009-527)
Authorizes referenda for half-cent sales tax to fund regional
mass transit in Triangle area; authorizes other funding measures
for transit across NC.

31. H. 569 DWQ/Bridge Culvert Standards—Directs DENR Supported by NCHBA. Enacted (S.L. 2009-478)
to authorize the use of 3-sided, open bottom or bottomless
culverts on private property that adhere to professional
engineering standards and sound engineering practices.

32. S. 761 Street Construction/Developer Responsibility— Supported by NCHBA. Passed Senate. Eligible for consideration
Limits cost to developers for street or highway construction in 2010.
to the proportional amount necessary to serve projected traffic
generated by the development.

33. H. 771 Trees/Ordinances Regulating Trees—gives Towns of NCHBA strongly opposed. Stopped. Presumed ineligible for
Cornelius, Davidson and Huntersville authority to adopt ordinances consideration in 2010.
regulating tree removal and preservation on residential lots.

34. H 239 Restore Water Quality in Jordan Reservoir— Compromise bill supported by NCHBA. Enacted (S.L. 2009-216)
Provides for improvements in water quality management of Worked with bill sponsor to amend new
Jordan Lake watershed. development requirements in S. 838.

35. S. 838 Amendments to Environmental Laws Amended at the request of and strongly Enacted (S.L. 2009-484)
2009—Contains Jordan Lake new development amendments supported by NCHBA.
and clarification to S. 831.

36. S. 1020 Improve Upper Neuse Basin Water Quality— NCHBA opposed introduced bill. NCHBA Enacted (S.L. 2009-486)
Directs the Environmental Management Commission (EMC) worked with bill sponsor and stakeholders
to credit local governments and landowners for pollution and supported compromise bill.
reduction in Falls Lake watershed; requires EMC to adopt
sedimentation strategy for Falls Lake watershed.

37. H. 945 The Studies Act of 2009—Authorizes numerous Monitored by NCHBA. Presented to Governor on 8/11/09.
studies during the interim.

38. H. 1007 Harnett/Subdivision Recreation Facilities— NCHBA strongly opposed. Stopped. Presumed ineligible for
Authorizes the imposition of impact fees up to $500/lot in consideration in 2010.
Harnett County and expands the purposes for which the
funds may be used to include construction and development
of recreational facilities.

39. H. 1011 Raleigh Stormwater Assessment—Permits Supported by NCHBA. Enacted (S.L. 2009-293)
the City of Raleigh to levy assessments against owners of
stormwater facilities for repairs to damaged or failed controls.

12   North Carolina Builder October 2009


October 2009 North Carolina Builder   13
Product Roundup: Building Systems
Stimulating in more ways than one
Tradition lives on A new stimulus package
To help celebrate 50 years in business, Nationwide Custom Homes In response to builders asking for cost-efficient houses to suit so many of
commemorates the milestone with the Tradition model home. The their customers in these penny-pinching times, Cardinal Homes has “value”
2,540-square-foot, two-story home is designed specifically to capture the engineered some of its most popular models and reintroduced them to the
historical elements of Southeastern heritage, while capturing the latest in market in a cost-savings line the company calls its “Stimulus Housing.”
today’s design trends. To make the homes more affordable, Cardinal has made changes such
As part of Nationwide’s Mainstreet Collection, the Tradition offers as using double windows where several
a very pleasing exterior look with a nod toward Jeffersonian elements. single windows may have been and
On the inside, the model includes the company’s anniversary package offering the standard 2-by-4 exterior
with such notable features as a full ceramic backsplash with electrical walls at 16 inches on center at
outlets mounted below the overhead cabinets, a craftsman trim and the same price as the 2-by-6
stair railing package, and engineered hardwood flooring. The plan walls at 24 inches on center.
includes a media room, a small sitting area at the top of the stairs that’s To date, there are a ranch
perfect for a mini-office or reading area, four bedrooms and two- priced less than $34 a square
and-a-half baths. foot, a two-story going for
As part of the Mainstreet Homes collection, builders can about $30 a square and
market the house as “what-you-see-is-what-you-get.” The a cape for less than $40
rendering shown on the cut sheet is what customers can expect per square, not including
when ordering the home. All elements shown in the rendering and freight or taxes. Soon to
corresponding photo are included in Nationwide’s anniversary package, s The Oakridge is an come is a much larger ranch-style home.
even the porch materials for on-site completion. affordable 2,352-square-foot Currently, Cardinal is taking suggestions
For more information, visit www.nationwide-homes.com or call four-bedroom, four-bath house from its builders on what they would like
(800) 216-7001. that’s part of Cardinal Homes to see in this more affordable line. The
Stimulus Housing line. company plans to re-engineer about one
To commemorate plan a month.
s

50 years in business, For more information, visit www.cardinalhomes.com or call (434)


Nationwide Custom 735-8111.
Homes, which since June
2002 has operated as Log home dealers wanted
a Palm Harbor division, Contrary to recent economic trends, the log and timber frame home is
added the Jeffersonian- a steadily growing industry.With increasing concerns about finite resources
influenced Tradition to and the impact of global warming,“green build” is not only fashionable but
its Mainstreet Homes is becoming necessary.
collection. As far as sustainability goes, logs are obviously a renewable resource. Plus,
thick log exterior walls mediate temperature differentials, improve energy
efficiency, reduce potentially hazardous waste products and provide a healthy
interior finish with no off gassing of VOCs. Traditional joinery techniques
have been refined to develop an airtight and energy-efficient log building.
1867 Confederation Log Homes, a Canada-based manufacturer who
has been in the business for more than 30 years, is not experiencing any
economic downturn. “Due to the natural choice of wood for green build,
we’re seeing a healthy demand for product,” says Mark Dunn, director of
business development. In fact, the company is seeking people interested in
joining its team of international dealers.
1867 Confederation Log Homes’ credentials include being the
An affordable charmer manufacture to receive Energy Star approval for a log home in Canada. Each
s From a nearly 1,600-square-foot, three-bedroom ranch-style home to a five- of its homes is engineered and prebuilt in shop, assembled and inspected to
bedroom Cape Cod that encompasses nearly 2,500 square feet, the new Timberland consistently maintain top quality.
series from Handcrafted Homes can be configured to fit the needs of a wide variety of “It’s definitely a growth market with a lot of income potential,” says
North Carolina families. There are seven standard models to choose from — including Dunn. “We have an internationally recognized product with a solid
one with an in-law suite — with compact footprints that work great on small lots. reputation and we back our product with a 50-year guarantee.”
Standard features include timber posts, corner post braces and porch railings. For more For more information, visit www.confederationloghomes.com or
information, visit www.handcraftedhomes.com or call (877) 424-4321. call Dunn at (877) 462-5647.

14   North Carolina Builder October 2009


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October 2009 North Carolina Builder   15


Knowledge Builder
Tips from your industry experts at Builders Mutual

Manufactured or real risk?

F
or consumers and contractors Using universal language not only exemplified a strong risk management
accustomed to “site-built” and “stick- The language of risk management brings technique, you’ve cross-trained your employees
built,” the factory-built housing industry the world of stick-built and factory-built homes so they can cover for one another if an employee
introduces a host of unfamiliar terms. It together. While the hazards are different, the cannot work a scheduled shift.
brings with it competitive advantages because concept of identifying and analyzing risks and Powered industrial trucks. Who has the
of the controls a manufacturing environment selecting, implementing, and reviewing risk right-of-way? Are traffic lanes marked and stop
offers, but it subsequently inherits risks unseen management techniques doesn’t change. So, signs and speed limits posted? Rely on both a
in its stick-built counterpart. what unique risks does the factory-built housing formal written and hands-on training program
Maybe you’re looking to get into the business. industry encounter? to comply with established policies for the safety
Maybe you’re looking to stack your business up Facility maintenance. Factory mainte- of operators and other employees onsite.
against it. Or, maybe you’re a manufacturer or an nance personnel are a must-have. They should Visitors. Employees aren’t the only people
employee in the factory-built housing industry. be highly responsive both in fixing broken at the factory. Visitors of all kinds, including
Regardless, you have a stake in understanding equipment and actively operating a preventative curious consumers, need to be accounted for in
the advantages and disadvantages of the systems- maintenance program. Safety features should be a company’s safety program. With a few simple
built side of housing. regularly tested, such as the E-Stop buttons on steps, they’ll be well protected. Maintain and light
automated equipment. Management’s creation the parking lot properly, remove tripping hazards,
Learning the lingo of an employee incentive program for reporting and provide safe entryways with clearly-marked
Let’s start with the terminology. When the and tracking maintenance issues demonstrates steps and adequate handrails. Welcome them to
HUD code went into effect in 1976, the term true company-wide support. the office area and direct them away from the
“mobile home” made way for “manufactured Employees working in close proximity. plant floor using high-visibility signage. You
housing.” These factory-built homes get With multiple homes under construction in a may even consider locking doors to the plant
constructed on a permanent steel chassis and factory in tight quarters, crews will be working in in compliance with the life safety code by using
get delivered on their own wheels to the home close proximity, whereas a stick-built home will plant doors that have no visitor-facing handles,
site. likely have no more than two subs on a job site but have crash bars on the inside.
Not to be confused with manufactured at the same time. This increases a manufacturer’s Shipping/receiving. Provide the same
housing, “modular homes” also get constructed chances of one crew’s work injuring another kind of direction for truck drivers. Establish
in a factory, yet these homes get built and nearby, especially when they’re using nail guns or policies where they can and can’t park. Include
transported in sections. Site contractors join power tools. expectations for wheel chocking and the use of
these modules together at the marriage walls. Manufacturers may want to periodically stabilizer jacks to protect forklift drivers, who
Picture a home complete with appliances and review if an underlying cause of accidents could offload the trailers.
carpeting getting spliced together with finishing be prevented by reconfiguring workflow. It also Then, when the product (whether a fully
trim work. reiterates the importance of caution, proper finished home, module, panel or kit) leaves the
Known as “panelized” in the systems-built PPE and each crew’s responsibility for good manufacturer, it becomes exposed to a host of
world, you’ll also find floor or roof trusses or housekeeping. transportation hazards far different from the
even wall systems, which are engineered at the Repetitive motion. Employees, while controls in the factory environment. Finally, the
factory and delivered to the home site. Log experienced from specialized training, may find manufacturer or site contractor takes it to turn-
home kits fall into the “pre-cut home” category themselves repeating the same task their entire key with site setup.
and serve as yet another variation in the factory- shift. For example, one employee’s sole job While factory-built homes might be
built housing industry. required him to bolt doors to pre-assembled manufactured, the risks are real.That’s exactly why
Each method differs based on factors such as: door frames for eight hours each day. a company’s commitment to risk management
• Cost In the interest of ergonomics, avoiding will help protect its employees, its customers and
• Quality controls repetitive motion injuries, and engaging its profitability.
• Amount of factory vs. site construction employees’ attention, employers can require pre-
• Total construction time shift stretching. Some companies insist upon
• Applicable building code (local, regional or micro-breaks, where employees stop work for
state vs. HUD) 2-3 minutes each hour, rehydrate and perform (Look for “Knowledge Builder,” compliments of
• Transportation methods prescribed stretches. Pair this with employees Builders Mutual Insurance Co., in each issue of North
• Foundation permanency who specialize in doing three to four different Carolina Builder. More risk management resources
• Likelihood of appreciation tasks for two to three hours each, and you’ve are available on www.buildersmutual.com.)

16   North Carolina Builder October 2009


At ,A mOment like this,
Aren t yOu glAd yOu hAve Builders mutuAl?

Construction debris can


do irreparable damage to
the unprotected eye.

O ur WorkSafe program provides our policyholders with valuable information


and safety training to avoid accidents like this one.

Your very own field expert can provide free individual consultation at the jobsite and help
you control losses. Plus, our policyholders have unlimited access to Builders University
800.809.4859
www.buildersmutual.com
OSHA-approved safety courses, English/Spanish Fall Protection Certification, and our risk
management CD containing valuable safety reference material. We even offer discounted
“Safety Stuff,” like the attractive safety glasses above, through our online store. Staying safe
and productive is just a matter of having the right tools.
October 2009 North Carolina Builder   17
2009 NCHBA build-pac NCHBECF awards
Major Contributors five scholarships
T
(Pledges/Contributions received as of Aug. 12 2009)
he North Carolina Home Builders Educational & Charitable Foundation
selected five students as recipients of education scholarships in 2009.
Knights of the Round Table ($4,000/year) The scholarship awards are presented annually to four-year college
Tom Gipson Pauline McLean Frank Wiesner students entering their junior or senior year or two-year technical school students
Raleigh-Wake County Wilkes County HBA Durham-Orange- entering their second year who have declared a construction-related major.
HBA Chatham Cos./ Scholarships are based on a combination of need and merit, and are awarded
Raleigh-Wake County to NCHBA family members. Preference goes to students attending college or
HBAs
technical school in North Carolina.

Capitol Club ($2,500/year) The following students each received $3,000


Andy Ammons Lyle Gardner Debby Van Tassel scholarships for the 2009-2010 school year:
Raleigh-Wake County Raleigh-Wake County Raleigh-Wake County
HBA HBA HBA Zachary Hussey of Robbins
Zac Koenig Hussey is continuing his education at the University of North
Jackson County HBA Carolina at Charlotte. He graduated in spring 2009 from Hussey
Sandhills Community College with a degree in civil engineering
President’s Circle ($1,000/year) technology and surveying technology, and is pursuing a degree
in civil engineering technology at UNC-C.
Danny Adams Don Fraley Charles Mullen Hussey has worked with his father, a 30-year veteran home
Moore County HBA Raleigh-Wake County Rocky Mount HBA builder, and enjoys the exposure of the various trades involved
Linda Lee Allan HBA Paul Mullican
in seeing a construction project from start to finish. In his spare
Fayetteville HBA Charles Gore Winston-Salem HBA
time, he enjoys archery/hunting, water sports, ATV trail riding, Mounie
Dent Allison Fayetteville HBA David Pressly
Hickory-Catawba Val- Tom Granger Iredell County HBA weight lifting and playing guitar.
ley HBA Hickory-Catawba Val- Lisa Reason
Jeff Ammons ley HBA Craven-Pamlico Cos. Matthew Mounie of Marvin
Raleigh-Wake County Sam Hagedon HBA Mounie studies construction management and business at
HBA Outer Banks HBA Ray Rhodes Appalachian State University. Each summer he works for his
Kevin Annas Karl Haslinger Sanford HBA father’s company, New Wave Development, which he hopes to
Caldwell County HBA Charlotte HBA Steve Royster run some day with the help of his brothers. Smith
Rex Bost Gary Hill Asheville HBA Mounie says his biggest accomplishment was earning the
Raleigh-Wake County Greensboro BA John Schlichenmaier
Eagle Scout award because of the hard work, determination
HBA Joseph Iannone Raleigh-Wake County
Bunny Boyd Raleigh-Wake County HBA and leadership skills needed to achieve the goal.
Iredell County HBA HBA Rick Shields
Donald Smith Jr. of Matthews
Harold Brewington Rose Iannone Lake Norman HBA
Fayetteville HBA Raleigh-Wake County Warren Smith Smith is majoring in construction management at the
Kurt Burger HBA Raleigh-Wake County University of North Carolina at Charlotte. He has gained
experience in the building industry helping his father with his Willis
Raleigh-Wake County Rick Judson HBA
HBA Charlotte HBA Craig Stevens construction company, Embassy Homes Inc.
Mike Carpenter Lisa Martin Wilmington-Cape Fear Smith is a member of Pi Kappa Alpha and enjoys sports. He
North Carolina HBA North Carolina HBA HBA was named “Most Dedicated Runner” during his freshman year
Elizabeth Cubler Frank McLawhorn Jim Stuart
Outer Banks HBA Greenville-Pitt County Raleigh-Wake County on the cross country team at UNCC.
Jim Derrickson HBA HBA Jacob Willis of Morehead City
Raleigh-Wake County Tim Minton Nick Tennyson
Willis is majoring in mechanical engineering at the Page
HBA Raleigh-Wake County Durham-Orange-
Nadine DiIorio HBA Chatham Cos. HBA University of North Carolina at Charlotte. He plans to get
Charlotte HBA Craig Morrison Jackie Trinchitella his master’s degree and enter the HVAC industry to design economically and
Ralph Doggett Durham-Orange- Fayetteville HBA ergonomically acceptable commercial and residential HVAC systems.
Alamance-Caswell Chatham Cos. HBA In his spare time, Willis enjoys drag racing, sports and working on cars. With the
HBA help of his dad and brother, he recently built his own drag racing car to race at the
NHRA tracks.
VIP ($500-$999)
Carolyn Armstrong Stephen Eastman Larry Howard The following student received a $1,500 scholarship:
Fayetteville Raleigh-Wake County Durham-Orange- Donald Page of Pfafftown
Grant Bridges HBA Chatham Cos. HBA
Winston-Salem Rick Frye Joe Tarascio Page received a scholarship for the fall 2009 semester, as he completes his
Dohn Broadwell Raleigh-Wake County Carteret County HBA construction management degree at East Carolina University in Greenville. Page
Fayetteville HBA Lance Youngquist came to the decision to enroll in construction management from his past experience
Jay Burke Darrel Hamilton Raleigh-Wake County building homes for impoverished families with his church group and also through his
Alamance-Caswell Ashe County HBA HBA experience working at West End Construction in Winston-Salem.
HBA Wayne Holt He is a member of the Golden Key International Honor Society and serves
Bill Daleure Raleigh-Wake County
Charlotte HBA as the Vice President of Sigma Lambda Chi (Construction Management Honor
Fraternity/Society).

18   North Carolina Builder October 2009


Spike of the Month BMIC course
offers timely
Name: Nicole L Gossage
Company: Fuquay Floor to
advice to
Ceiling Interior Design builders

B
Showroom uilders Mutual Insurance
Position: Design Consultant Co. successfully piloted a
/Kitchen and Bath new policyholder course
Specialist called “Building for the Future” Aug. 18 at its Raleigh headquarters. 
Gossage “In celebration of Builders Mutual’s 25th anniversary, we felt that it was important to give
How long in business:
16 years something back to our customers,” Mike Gerber, Builders Mutual SeniorVice President and Chief
Spike credits: 57.5 Marketing Officer, told the 32 participating builders.“We are here today to help you position your
HBA: HBA of Johnston County business so that you’re ready when the market recovers.” 
HBA involvement: Board of Directors – six The all-day session began with Ed Dunnavant of Metrostudy Corp., who provided an overview
years; Co-Chair of Parade of Homes; Co- of the current Triangle area housing market. Participants then heard personal success stories from
Chair of Associate Committee, Membership Virginia builder Vince Butler of Butler Brothers Corp., who stressed the importance of planning
Committee - Spike Chair; Associate of the for the future of your business and varying your business strategies for new opportunities. 
Year Harnett County HBA 2000; Associate The day ended with a comical overview of “Leadership Land Mines,” written by local author
of the Year HBAJC 2004-2008 Marty Clarke.  Through a mix of humor and real life examples, Clarke shared a variety of tips to
Marital status: Married to Scott L. Gossage help builders delegate, motivate others and communicate in tough times. 
for 4 ½ years According to Michele Hemric, director of training and development for Builders Mutual,
Favorite food: Any type of chicken and pasta post-class survey results showed that builders who attended the program felt it was full of timely
Favorite movies: “Sweet Home Alabama,” and useful information. Many felt the class helped them think in different directions and provided
“Dirty Dancing,” “Steel Magnolias” clarity on what to try going forward. 
Favorite magazine: NKBA Kitchen & Bath Raleigh builder Warren Smith of L and L of Raleigh Inc. commented “Building for the Future
gives me one more reason to be a member of my HBA and a client of Builders Mutual.” 
Design, Good Housekeeping
Builders Mutual is considering future offerings of “Building for the Future.”  All current
Ideal vacation: Any place warm with sand and
Builders University course offerings are available at www.buildersmutual.com/bu.
no cell phone service
Hobbies: Hanging out with family and friends,
raising money for American Cancer Society,
singing and, of course, any type of design
Pets: Daisy, a 4-year-old Beagle
First job: Lighting consultant at “ The
Lighthouse” in Dunn
If you had 15 minutes in front of the
NCHBA membership, what would you
say about recruitment/retention?
If you truly believe in any type of
organization, recruiting is easy. I wholeheartedly
believe in being a member of the NCHBA and
do my best to pass the enthusiasm I have for the
organization along when in a “recruitment or
retention” situation.
For me, as an Associate Member, the
opportunities to network with builders and
other associates are priceless.The knowledge I
have gained through educational seminars has
become a part of my everyday work system.
Just getting a check and a membership
application does not mean that the new
member will be active member, I make sure to
personally invite and attend the new member
orientation and general membership meeting
with my new “recruits” so they have an
opportunity to see exactly what the association
has to offer. Retention is making sure that
they know they make a difference and that the
association can make a difference for them.

October 2009 North Carolina Builder   19


NCHBA News
HBAs honored at EOC conference country with three years or less experience. • Lake Norman HBA University received

L ocal home builders associations in North


Carolina took home seven Association
Excellence Awards at the 2009 Executive
Since coming to the AHBA, Sutton and her
staff have doubled the membership, added
unique networking events and added an
the Best Education Plan Implemented
Award; and
• LNHBA’s Web site, www.lnhba.com, was
Officers Council Seminar in Louisville, Ky., this extensive education program for those in the honored for Best HBA Web Site
past August. home building industry.   The Asheville HBA took home honors
Caroline Sutton, executive director of the This year marks the second consecutive for the Best Communication to Members –
Asheville Home Builders Association, received year a North Carolina executive officer took Newsletters/Newspapers for it monthly AHBA
the David G. Lloyd Memorial “New Executive home the prestigious award, with Tim Minton Blueprints newsletter.
Officer of the Year” Award, which honors of Raleigh-Wake County HBA receiving the Congratulations to Sutton and the Lake
the most outstanding executive officer in the award last year. Norman and Asheville HBAs for their
The Lake Norman HBA received an dedication and hard work.
impressive five awards:
• Best of the Lake Design Competition, an Heat pump rebate offered
annual competition that allows designers,
builders and trade craftsmen to showcase
their talents and projects, received the Best
D uke Energy is currently offering a $300
rebate on high-efficiency heat pumps (at
least 14 SEER with an ECM motor). 
Member Recognition Program/Event In new construction, the rebate goes to
award. the builder.  In an existing home, the rebate is
• LNHBA Parade of Homes Plan Book was split between the homeowner ($200) and the
recognized as Best Communication to HVAC contractor ($100).  Builders and dealers
s Caroline Sutton of the Asheville Home Builders Members–Special Events Publication. who sign up as a Trade Ally will be listed as a
Association, the newly named New Executive Officer • The Big Hunter 2008 LNHBA participating vendor on the Duke Energy Web
of the Year, receives congratulations from Tim Minton Membership Drive won for Best site.  For more information, visit the Web site at
of the HBA of Raleigh-Wake County, last year’s Membership Recruitment Plan http://www.duke-energy.com/north-carolina/
recipient of the prestigious award. Implemented; savings/smart-saver.asp.

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and your clients? Let’s count the ways: Compact design
frees up room. Hot water on demand means lower water
heating bills (up to 60% less). Innovative construction gives
them a longer life expectancy. And they’re easier to install.
Smaller and more energy-efficient, tankless water heaters
are an ideal way to increase cash flow. For more details,
They also contact your local propane retailer or visit usepropane.com.
last longer.

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5109 Hollyridge Drive, Raleigh, NC 27612 919-787-8485

20   North Carolina Builder October 2009


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October 2009 North Carolina Builder   21


5580 Centerview Drive
Raleigh, NC 27606

Route to: l President l Purchasing l Sales/Mktg. l Superintendent

22   North Carolina Builder October 2009

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