August 12, 2009 – The New American Home 2010, a model of innovation in energy and resource efficiency, has now become a high profile model of restrictive lending practices by a banking industry that is choking off the supply of credit for residential construction.
As Las Vegas builder Domanico Custom Homes works tirelessly to complete the home in time for its debut in January at the 2010 International Builders’ Show (IBS), the company must now contend with lenders who have cut off the supply of capital for even the best projects. The builder of one of the most heavily visited and widely covered show homes in the world is having trouble getting the financing needed to finish the project.
The 2010 home is being built to the new National Green Building Standard and will be a near net-zero-energy home. It serves as a laboratory that will help shape the building practices used by thousands of those who seek to produce energy efficient homes. However, Domanico Custom Homes has not been able to find a bank that will finance the final draw needed to complete the home, even though it is 60 percent finished.
“Instead of being a showcase for innovative new products and green building technologies, The New American Home 2010 has become a showcase of excessively restrictive lending practices and failed regulatory oversight,” said Joe Robson, Chairman of the National Association of Home Builders (NAHB) and a home builder from Tulsa, Okla. “We’ve been hearing from builders across the country that banks are cutting way back on loans for construction, and this is a prime example.”
NAHB is calling on banking regulators and the banking industry to end the stranglehold on acquisition, development and construction (AD&C) loans that has emerged as a major impediment to the housing recovery. Lenders are refusing loans for viable new housing projects and cutting off funding or calling performing outstanding loans, producing unnecessary foreclosures and losses on AD&C loans.
“The banking regulators need to allow and encourage lenders to give leeway to residential AD&C borrowers who have loans in good standing by providing flexibility on re-appraisals, loan modifications and perhaps forbearance to give builders time to complete and sell their lots and homes,” Robson said. “The New American Home 2010 is a great home from a program that has a long history of sound performance and good returns. If the builder of this home has trouble getting a loan, then you know the system is not working.”
The home was designed by the architecture firm KTGY Group of Irvine, Calif. Much smaller than other recent homes in the series, the 6,000 square foot desert-contemporary home is a model of space efficiency in residential design. The architects have also incorporated many universal design features into the home.
Adam Knecht, general manager at Domanico Custom Homes, said he understands the lenders’ perspective.
“Banks are just not lending because Las Vegas has been a tough market,” Knecht said. “But this is a beautiful home in a great location and it is the state-of-the-art in green building. The New American Home is seen by thousands of people – millions if you include feature articles in newspapers and magazines. We’re not going to have trouble selling this home.
“If there is an investor out there looking for a good lending opportunity, I would love to hear from them,” Knecht said.
The home’s green building features include APEX block construction for exterior walls, a solar hot water system with gas backup, several types of insulation for different parts of the house, and photovoltaic cells. It also includes a greywater recycling system, tankless hot water heaters, high-efficiency furnaces, and “intelligent” fireplaces. It even has a green roof system to cover part of the patio.
Sponsored by the National Council of the Housing Industry (NCHI) and Builder Magazine, The New American Home is one of NAHB’s most visible programs. The show home is just 10 minutes from the Las Vegas Convention Center. The home will be open for free guided tours during IBS 2010 exhibit hours. For more details, visit www.tnah.com.
Posts Tagged ‘FHA’
Credit Crunch Hits NAHB Show Home
Monday, August 17th, 2009NAHB Applauds Senate Confirmation Of Stevens As FHA Commissioner
Monday, July 13th, 2009July 13, 2009 – The National Association of Home Builders (NAHB) today applauded Senate confirmation of David Stevens as head of the Federal Housing Administration (FHA).
“During this time of market uncertainty, NAHB believes that it is essential to have a strong and experienced leader at the FHA and David Stevens is the right man for the job,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “His strong background in the financial services, real estate and mortgage industries makes him uniquely qualified to take on the extensive challenges facing the FHA and the housing industry. NAHB looks forward to working with Mr. Stevens and HUD in 2009 and beyond to put housing back on a growth path.”
Since October 2008, Stevens served as president and chief operating officer of the Washington, D.C.-based real estate firm of Long & Foster. He joined Long & Foster in 2006 to lead the company’s affiliated businesses, including its mortgage, title and insurance division.
Source: NAHB.org
DV Wise
NAHB Headquarters Garners Fifth Energy Star
Tuesday, June 30th, 2009June 30, 2009 – The National Association of Home Builders (NAHB) has earned its fifth ENERGY STAR designation for the National Housing Center, the downtown Washington, D.C. office building that serves as the association’s headquarters.
The designation recognizes buildings that conserve natural resources while providing a comfortable and healthy environment for employees and visitors.
Since the building was significantly expanded and renovated in 2001, the Housing Center’s property manager, Transwestern, has continued to fine-tune the details of the original energy-efficient construction project. Attention to the operation and maintenance of the building is the key to holding the line on energy use and utility costs, said NAHB President and Chief Executive Officer Jerry Howard.
“We believe that it’s important to make today’s building stock as efficient as possible, and these improvements demonstrate how we put these values into practice,” Howard said.
To earn its fifth designation, Transwestern engineers continued to install occupancy sensors in common areas so the lights turn on only when the room is in use. Low-flow aerators were installed in all restroom sinks as well as additional insulation around the perimeter of the building.
Transwestern staff also regularly inspects and maintains the heating and air conditioning equipment used in the building to optimize its performance and prolong its life, Howard said. The Housing Center’s continued ENERGY STAR designations save money and energy while they also send a strong signal regarding housing industry support for voluntary energy guidelines, he added.
NAHB has also made landscaping improvements around the building, adding more plants and greenery to help absorb storm water runoff and keep it out of the city’s drainage system – not an ENERGY STAR requirement, but another way to reduce the environmental impact of the National Housing Center.
“Many of our members build homes with appliances, windows and doors, and heating and cooling systems that meet the ENERGY STAR guidelines. In fact, 840,000 ENERGY STAR-rated homes have been constructed in the past 15 years,” Howard noted. “These home builders’ business practices show how NAHB members are at the forefront of green building – and that’s reflected in how we operate our national headquarters.”
A plaque recognizing the ENERGY STAR achievement has been posted near the building’s
source: NAHB.org
DV Wise