Lactation breaks and posting requirements went into effect July 1, 2013

Lactation breaks and posting requirements went into effect July 1, 2013 
(from DLIR's blog, Inside Hawaii's Wage Standards and the DLIR)

     Act 249, Regular Session 2013, was signed into law and become effective on July 1, 2013.  The Act requires employers to provide a private place (other than a bathroom) and the time for mothers in the first year of their child's birth, to express breast milk.   The law also requires employers to post a notice about nursing mother's rights.  The DLIR has provided a suggested poster that can be found on the DLIR website.  

Who's covered?
      This law protects all employees who need to express milk while at work within the first year of their child's birth.  This is a much broader application than a similar law under the Federal Labor Standards Act ("FLSA").  TheFLSA provision applies only to those employees who are not exempt from the overtime law under FLSA.  The FLSA also provides that any State law offering greater protection has priority.  This means Act 249 is the standard in Hawaii for all employers.

All employers?  YES!
     The law does provide an opportunity for employers with less than 20 employees to prove that providing the space and time would impose an undue hardship.  Notice it is the employer who has to show the undue hardship if they choose not to provide the space and time required under the law.  

What kind of space and how much time?
      Act 249 specifies employers need to provide  "reasonable break time" which is not defined.  As well, the place provided must be "shielded from view and free from intrusion."  Employers who are struggling with how to provide this may reach out to proponents of the measure including  Breastfeeding Hawaii who have various suggestions and alternatives to assist employers with compliance.
      
Private right of action and penalties
   The DLIR does not enforce this law, it is enforced by court action, similar to Hawaii's whistleblower law.  Employers who fail to comply with opportunity to express milk law  may be sued in an appropriate court and be subject to a civil fine of $500 a day for violations.  In addition, employers may be liable for damages to the employee or employees who bring the private right of action in court.

What to do if employer and employee can not agree
   The law provides a legal remedy that allows a lawsuit in the appropriate court.  The Hawaii State Bar Association has an information and referral line (808-537-9140) that will provide free referrals to several attorneys that are familiar with this issue that will help you find a resolution.

Mediation may be the answer
     Employees or employers may reach out for assistance in resolving the matter through mediation.  Community mediation centers throughout the State provide professional workplace mediation.  To find out more about how this can help, you can contact a local mediation center near you.  Honolulu, Oahu - Mediation Center of the Pacific(808) 521-6767; Wailuku, Maui - Maui Mediation  (808) 244-5744;  Hilo Hawaii - Ku'ikahi Mediation Center  (808) 935-7844; Kamuela, Hawaii - West Hawaii Mediation Center - (808) 885-5525; Kauai - KEO Mediaton (808) 245-4077 Ext: 229 or 237.

New-Home Sales Rise 7.9 Percent in August

NAHB Press Release

WASHINGTON, Sept. 25 - Sales of newly built, single-family homes rose 7.9 percent to a seasonally adjusted annual rate of 421,000 units in August, according to newly released figures from HUD and U.S. Census Bureau. The gain partly offsets a dip in sales activity that occurred in July as consumers reacted to higher interest rates.

"Consumers are adjusting to the reality of today's higher rates following a period of record-setting lows, and today's sales report provides evidence of that," said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. "We expect to see more buyers coming back to the market as the psychological effects of the rate gains continue to wear off, particularly since, even after the recent spike, mortgage rates remain exceptionally favorable on a historic basis."

"Sales of new homes bounced partway back in August from an unusual low in July," said NAHB Chief Economist David Crowe. "That said, we are only about halfway back to what would be considered a sustainable level of activity in a normal economy, and the ongoing housing recovery continues to be slowed by consumers' concerns about interest rates, as well as weak job growth and uncertainty about what's happening in Washington."

Three out of four regions posted solid gains in new-home sales activity in August. Sales rose 8.8 percent in the Northeast, 19.6 percent in the Midwest and 15.3 percent in the South for the month. The West was the exception to the rule, with a 14.6 percent decline.

While the months' supply of new homes edged down to 5.0 due to the quicker sales pace in August, the total inventory rose for a seventh consecutive month, to 175,000 units.

Senators Cite Importance of Maintaining Federal Backstop in Housing Finance Overhaul

NAHB Press Release

WASHINGTON, Sept. 17 -- Sens. Jon Tester (D-Mont.), Bob Corker (R-Tenn.) and Johnny Isakson (R-Ga.) today stressed that ongoing efforts to reform the U.S. tax code and overhaul the housing finance system should take into account the important role that housing plays in the economy.

The senators joined housing industry experts at a forum that examined the future of U.S. housing, "Building a Better Future: America's Housing at a Crossroads," at the Newseum in Washington. The symposium was produced by CQ Roll Call and sponsored by the National Association of Home Builders (NAHB).

Sens. Tester and Corker are among 10 bipartisan cosponsors of the Housing Finance Reform and Taxpayer Protection Act (S. 1217), legislation to reform the nation's housing finance system that includes a federal backstop while limiting taxpayer exposure.

"We worked hard to make sure the 30-year, fixed-rate mortgage remains a viable option," said Tester. "This is something consumers want and expect. I don't think we could have a viable 30-year note in a purely private market."

"We had 10 senators that weighed in and made a difference," said Corker. "I think we have struck a very good balance. The 10 percent capital piece is a very, very important element. Another component that was very important was having a federal backstop."

As the legislative process moves forward, Corker added that he expects to see improvements to S. 1217 and that a housing finance proposal pending in the House will also undergo changes.

"My guess is by the time something passes out of the House it might be a little bit different from where it is and move a little more toward where the Senate bill is," said Corker. "My guess is the House and Senate can pass bills with different characteristics and we can move to conference to get something done for the country."

In terms of tax reform, Sen. Isakson, who is a member of the Senate Finance Committee, said his panel is prepared to move forward if it gets "the opportunity."

Isakson said that every provision in the tax code, including the mortgage interest deduction and Low Income Housing Tax Credit, must be justified in terms of "what they produce for the country. If you can't make a case for your tax provision, it should not be in there."

"I can make a great case for the preservation of the mortgage interest deduction and I can make a phenomenal case for low and moderate income housing tax credits in terms of the payback to the country, but those arguments have to be won and lost when you are truly doing a major reform," said Isakson.

Along with the Senate keynote speakers, housing analysts engaged in a series of in-depth discussions on key issues, with a special emphasis on the outlook for housing demand and production, ongoing efforts toward reform of the housing finance system and the potential impacts of tax reform on homeownership and the economy.

Demographics

The housing downturn led to a "remarkable slowdown in household growth," said Eric Belsky, managing director, Joint Center for Housing Studies at Harvard University. "There is not a strong recovery in household formations, but we are seeing signs of that happening. People don't want to live with their parents into their 30s; they are doing it out of economic necessity."

As the economy continues to mend, pent-up demand for housing should also increase, according to NAHB Chief Economist David Crowe.

"I would say in general the housing market is only half-way back," he said. "Multifamily production is back to 300,000 units per year, which is nearly back to normal."

While the single-family side continues to gradually bounce back, Crowe said that several challenges remain.

"Credit for buyers and builders remains difficult, and there is a lack of buildable lots," he said.

Looking ahead, the outlook looks bright for homeownership.

"Nineteen out of 20 people say they plan on buying a home somewhere in the future if they are under the age of 45," said Belsky. "You can lock in housing payments with a fixed rate mortgage today or look at higher rents in the future. A lot of people will look at that calculation and say 'I think it is time to buy a home.'"

Columbia Business School Professor Christopher Mayer also noted that homeownership is not just an American dream but a global dream.

"When you look at developing countries, people try to buy a home," said Mayer. "It is economic security."

Housing Finance

Panelists addressing the issue of housing finance were in general agreement that the private sector needs to play a greater role in mortgage financing but that maintaining some level of federal support is essential to ensure stability and liquidity in the mortgage markets.

A dissenting view on this latter point came from Peter Wallison of the American Enterprise Institute, who said that lowering the conforming loan limits of government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac over time will allow the private sector to come in and pick up that business.

"If you simply made those changes and authorized the withdrawal of the GSEs, you would find we would gradually move to a completely private system, which is where I think we should be going," said Wallison.

This response drew a sharp rebuttal from other panelists.

"Private capital by itself will not secure a safe market and most importantly, private capital during a down market is least likely to be there," said Michael Calhoun, president of the Center for Responsible Lending.

"Mike is making a real important point that credit will dry up in the housing finance market when times get tough," added Georgetown University Law Professor Adam Levitan.

"There is a government, taxpayer supported entity that stands up," said Michael Stegman, counselor to the Secretary of the Treasury for Housing Finance Policy. "We know how much more serious the [housing and economic] crisis would have been without the FHA stepping up."

Tax Reform

On the topic of tax reform, a third panel of housing experts were in general agreement that the mortgage interest deduction plays a key role in shaping housing demand, while differing in their evaluation of current policy.

"The nonpartisan Tax Foundation found that if we repealed the mortgage interest deduction and lowered marginal tax rates then GDP would decline by $100 billion annually," said NAHB economist Robert Dietz.

Dietz also said that repealing the deduction would case home values to fall. "Considering it only takes a 6 percent drop in home values to wipe out $1 trillion in household wealth, the economic consequences could be significant."

Noting the importance of the mortgage interest deduction to younger households, who are paying greater amounts of interest in the early years of a mortgage, Dietz warned that repeal of the deduction would lead the homeownership rate to fall and the average age of a first-time home buyer to rise. This delay could in turn affect family formation, wealth accumulation and other economic and demographic outcomes.

Anthony Randazzo, director of economic research at the Reason Foundation, said he opposes the mortgage interest deduction and believes that tax policy should not be set to achieve social purposes.

"Do we want to support middle class or low-income home owners? Then let's just provide an explicit subsidy to people we want to, and then find a middle ground," he said.

Dr. John Weicher, a director of the Hudson Institute's Center for Housing and Financial Markets, rejected the idea that the mortgage interest deduction is a tax distortion.

"Keep in mind if you are a home owner you have an asset and consumption," he said. "You are a landlord renting to yourself. It is silly to think of this as simply a consumption when it is the biggest investment that nearly anyone is going to make."

Builder Confidence Unchanged in September

NAHB Press Release

WASHINGTON, Sept. 17 - Following four consecutive months of improvement, builder confidence in the market for newly built, single-family homes held unchanged in September with a reading of 58 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today.

"While builder confidence is holding at the highest level in nearly eight years, many are reporting some hesitancy on the part of buyers due to the sharp increase in interest rates," said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. "Home buyers are adjusting to the fact that, while mortgage rates are still quite favorable on a historic basis, the record lows are probably a thing of the past."

"Following a solid run up in builder confidence over the past year, we are seeing a pause in the momentum as consumers wait to see where interest rates settle and as the headwinds of tight credit, shrinking supplies of lots for development and increasing labor costs continue," noted NAHB Chief Economist David Crowe.

Derived from a monthly survey that NAHB has been conducting for 25 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations in the next six months as "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average," or "low to very low." Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

HMI component indexes were mixed in September. While the component gauging current sales conditions held unchanged at 62, the component gauging sales expectations in the next six months declined three points to 65 and the component gauging traffic of prospective buyers increased one point, to 47.

All four regions posted gains in their three-month moving average HMI scores in September, including a two-point gain to 41 in the Northeast, a four-point gain to 64 in the Midwest, a two-point gain to 56 in the South and a four-point gain to 61 in the West, respectively.

Editor's Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found atnahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.

OSHA's Proposed Silica Rule Raises Concerns for Construction Industry, Says NAHB

NAHB Press Release

WASHINGTON, Aug. 28--A coalition of construction industry groups is concerned about a proposed rule from the Occupational Safety and Health Administration (OSHA) that's intended to protect workers from inhaling dust containing silica, created by activities such as cutting brick or block, and sawing, grinding or drilling concrete.

"We need practical, science-based solutions that protect workers in all facets of construction," said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a builder and developer from Charlotte, N.C. "Unfortunately, OSHA's initial announcement about this proposed rule indicates we aren't there yet."

Announced Aug. 23 in a press conference that laid out few details, the proposed rule seems to call for one-size-fits-all measures that contradict existing safety and quality assurance practices for different types of contractors.

For instance, spraying water to reduce dust may be practical in some construction projects, but using it inside a home while cutting granite counters can cause mold. In cold weather, spraying water while cutting asphalt roof shingles could cause ice to form on the slanted surface, endangering workers. Ventilation and dust-capture systems can inhibit the safe operation of tools. And if prescribed measures are not practicable, contractors might be forced to eliminate products with silica altogether, including concrete, brick, granite, and other common construction materials.

Independent studies have estimated costs for construction industry compliance will exceed $1 billion per year.

NAHB is part of the Construction Industry Safety Coalition, which is seeking a feasible and cost-effective crystalline silica regulation that improves safety and health protection measures for workers. The coalition represents thousands of employers working to protect hundreds of thousands of workers in home building, road repair, heavy industrial production, specialty trades and materials supply.

It was formed to encourage OSHA to develop better choices for compliance with the construction-specific silica rule: alternatives that also address costs, consistency with existing federal regulations and do not overly burden small businesses.

Construction Industry Safety Coalition members include:

· Associated Builder and Contractors (ABC)
· Associated General Contractors (AGC)
· Association of the Wall and Ceiling Industry (AWCI)
· American Road and Transportation Builders Association (ARTBA)
· American Subcontractors Association (ASA)
· International Council of Employers of Bricklayers and Allied Craftworkers (ICE)
· Mason Contractors Association of America (MCAA)
· Mechanical Contractors Association of America (MCA)
· National Electrical Contractors Association (NECA)
· National Roofing Contractors Association (NRCA)

Higher Mortgage Rates Prompt Pause in New-Home Sales in July

NAHB Press Release

WASHINGTON, Aug. 23 - Sales of newly built, single-family homes declined 13.4 percent to a seasonally adjusted annual rate of 394,000 units in July as higher mortgage rates prompted a temporary pause in buying activity, according to newly released data from HUD and the U.S. Census Bureau.

"The drop-off in sales in July is in part a reflection of buyers' reaction to the recent uptick in mortgage rates as people reassess their budgets to determine how much house they can afford," said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. "Consumers just need a little time to adjust to the new parameters of the market."

"New-home sales figures refer to newly signed contracts to purchase a home, rather than a completed sale, and it's likely that the higher rates caused some buyers to delay putting pen to paper," explained NAHB Chief Economist David Crowe. "However, there is still a great deal of pent-up demand for homes in markets nationwide, and builders continue to report improving consumer interest. This suggests that what we're seeing is a temporary pause, and that buyers will return to the market once they are confident that the higher mortgage rates are here to stay."

Every region recorded lower new-home sales in July, with declines of 5.7 percent, 12.9 percent, 13.4 percent and 16.1 percent reported for the Northeast, Midwest, South and West, respectively. Meanwhile, the inventory of new homes for sale edged up to 171,000 units in July, which is a 5.2 month supply at the current sales pace.

Housing Starts Rise 5.9 Percent in July

NAHB Press Release

WASHINGTON, Aug. 16 - Nationwide housing starts rose 5.9 percent to a seasonally adjusted annual rate of 896,000 units in July as multifamily construction rebounded from a dip in the previous month, according to newly released figures from HUD and the U.S. Census Bureau. Meanwhile, single-family construction recorded a modest decline from a rate that was upwardly revised for the previous month.

"Builders are making every effort to keep up with the rising demand for new homes and apartments, and construction in both sectors is running well ahead of the pace we saw at this time last year," noted Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. "However, ongoing issues with accessing credit and limited supplies of finished lots and labor are making it tough to do that, particularly for single-family builders."

"Today's report is in line with our forecast for continued, gradual strengthening of housing starts and permit activity through the rest of the year," said NAHB Chief Economist David Crowe. "The double-digit bounce-back on the multifamily side was in keeping with typical month-to-month volatility in that sector," he noted, "while the sideways movement in single-family was a result of unusually wet weather in the South and West."

Single-family housing starts declined 2.2 percent from an upwardly revised pace in June to a seasonally adjusted annual rate of 591,000 units in July. Meanwhile, a 26 percent gain to a 305,000-unit pace on the multifamily side offset a similar dip in the previous month.

Regionally, combined housing starts activity posted solid gains of 40.2 percent in the Northeast, 25.4 percent in the Midwest and 7.2 percent in the West, respectively, in July, while the South posted a 7 percent decline.

Issuance of building permits, which can be an indicator of future building activity, rose 2.7 percent to a seasonally adjusted annual rate of 943,000 units in July. Single-family permits dipped 1.9 percent to 613,000 units from a strong pace in the previous month, while multifamily permits gained 12.6 percent to 330,000 units.

Regionally, combined permit issuance increased across the board in July, with gains of 1 percent, 2.8 percent, 1.1 percent and 7.1 percent in the Northeast, Midwest, South and West, respectively.

Builder Confidence Rises Three Points in August

NAHB Press Release

WASHINGTON, Aug. 15 - Builder confidence in the market for newly built, single-family homes rose three points to 59 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for August, released today. This fourth consecutive monthly gain brings the index to its highest level in nearly eight years.

"Builders are seeing more motivated buyers walk through their doors than they have in quite some time," said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. "What's more, firming home prices and thinning inventories of homes for sale are contributing to an increased sense of urgency among those who are in the market."

"Builder confidence continues to strengthen along with rising demand for a limited supply of new and existing homes in most local markets," noted NAHB Chief Economist David Crowe. "However, this positive momentum is being slowed by the ongoing headwinds of tight credit and low supplies of finished lots and labor."

Derived from a monthly survey that NAHB has been conducting for 25 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low." Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Two of the HMI's three components posted gains in August. The component gauging current sales conditions rose three points to 62, while the component gauging sales expectations in the next six months gained a single point to 68 and the component gauging traffic of prospective buyers held unchanged at 45.

All but one region saw a gain in its three-month moving average HMI score in August. The Midwest and West each posted six-point increases, to 60 and 57, respectively, while the South posted a four-point gain to 54 and the Northeast held unchanged at 39.

Editor's Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found atnahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.

Rising Home Values Impact Affordability in Second Quarter

NAHB Press Release

WASHINGTON, Aug. 13 - Nationwide housing affordability slipped several notches as recovering markets witnessed significant firming of home prices in the second quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), released today.

In all, 69.3 percent of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income of $64,400. This is down from the 73.7 percent of homes sold that were affordable to median-income earners in the first quarter, and the first time that the measure has fallen below 70 percent since late 2008.

"Housing affordability has been hovering near historic highs for the past several years, largely due to exceptionally favorable mortgage rates and low prices during the recession," observed NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. "Now that markets across the country are recovering, home values are strengthening at the same time that the cost of building homes is rising due to tightened supplies of building materials, developable lots and labor."

"Rising home prices signal the improving health in housing markets, and the median price of all new and existing U.S. homes sold in this year's second quarter, at $202,000, was well ahead of the second quarter 2012 median price of $185,000," observed NAHB Chief Economist David Crowe. "Together with rising mortgage rates, this contributed to affordability slipping to the lowest level in more than four years. Such movement would be less concerning were it not for ongoing discussions regarding potential changes to the mortgage interest deduction and federal support for the secondary mortgage market, both of which play enormous roles in keeping homeownership affordable."

While Ogden-Clearfield, Utah, was rated the nation's most affordable major housing market for a fourth consecutive quarter, a newcomer - Utica-Rome, N.Y. - claimed the title of most affordable smaller market in the latest HOI.

In the larger metro, 92.8 percent of all new and existing homes sold in this year's second quarter were affordable to families earning the area's median income of $70,800. This was slightly lower than the 93.4 percent of homes sold that were affordable to median income-earners in the previous quarter. Meanwhile, just over 97 percent of new and existing homes sold in Utica-Rome in the same period were affordable to families earning that area's median income of $63,800.

Other major U.S. housing markets at the top of the affordability chart in the second quarter included Indianapolis-Carmel, Ind.; Harrisburg-Carlisle, Pa.; Youngstown-Warren-Boardman, Ohio-Pa.; and Buffalo-Niagara Falls, N.Y., in descending order.

Smaller markets joining Utica at the top of the affordability chart included Kokomo, Ind.; Cumberland, Md.-W.V.; Vineland-Millville-Bridgeton, N.J.; and Bay City, Mich.

For a third consecutive quarter, San Francisco-San Mateo-Redwood City, Calif. held the lowest spot among major markets on the affordability chart. There, just 19.3 percent of homes sold in the second quarter were affordable to families earning the area's median income of $101,200.

Other major metros at the bottom of the affordability chart included Los Angeles-Long Beach-Glendale, Calif.; Santa Ana-Anaheim-Irvine, Calif.; New York-White Plains-Wayne, N.Y.-N.J.; and San Jose-Sunnyvale-Santa Clara, Calif.; in descending order.

All of the least affordable small housing markets were in California in the latest quarter. At the very bottom of the affordability chart was Santa Cruz-Watsonville, where 30 percent of all new and existing homes sold were affordable to families earning the area's median income of $73,800. Other small markets at the lowest end of the affordability scale included San Luis Obispo-Paso Robles, Salinas, Napa and Santa Rosa-Petaluma, respectively.

Please visit www.nahb.org/hoi for tables, historic data and details.

Editor's Note: The NAHB/Wells Fargo Housing Opportunity Index (HOI) is a measure of the percentage of homes sold in a given area that are affordable to families earning the area's median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by Core Logic, a data and analytics company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Agency.

The NAHB/Wells Fargo HOI is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public.

Builder Confidence in the 55+ Housing Market Shows Significant Improvement in Second Quarter

NAHB Press Release

WASHINGTON, Aug. 8 - Builder confidence in the 55+ housing market for single-family homes showed strong continued improvement in the second quarter of 2013 compared to the same period a year ago, according to the National Association of Home Builders' (NAHB) latest 55+ Housing Market Index (HMI) released today. The index increased 24 points to a level of 53, which is the highest second-quarter number since the inception of the index in 2008 and the seventh consecutive quarter of year over year improvements.

"Builders and developers for the 55+ housing sector are feeling optimistic as they are seeing more consumers return to the marketplace," said Robert Karen, chairman of NAHB's 50+ Housing Council and managing member of the Symphony Development Group. "With existing home prices rising, consumers are able to sell their current homes and make the move toward either purchasing a home or renting an apartment that is designed to more specifically suit their lifestyle."

There are separate 55+ HMIs for two segments of the 55+ housing market: single-family homes and multifamily condominiums. Each 55+ HMI measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic). An index number below 50 indicates that more builders view conditions as poor than good.

All of the components of the 55+ single-family HMI showed major growth from a year ago: present sales climbed 24 points to 54, expected sales for the next six months increased 25 points to 60 and traffic of prospective buyers rose 26 points to 48.

The 55+ multifamily condo HMI posted a substantial gain of 24 points to 43, which is the highest second-quarter reading since the inception of the index. All 55+ multifamily condo HMI components increased compared to a year ago as present sales rose 26 points to 44, expected sales for the next six months climbed 26 points to 46 and traffic of prospective buyers rose 19 points to 38.

The 55+ multifamily rental indices also showed strong gains in the second quarter as present production increased 19 points to 50, expected future production rose 20 points to 52, current demand for existing units climbed 20 points to 62 and future demand increased 21 points to 63.

"The 55+ HMI for single-family homes almost doubled from a year ago," said NAHB Chief Economist David Crowe. "Sentiment in other segments of the 55+ market housing was strong as well. This is consistent with the increase in builder confidence we've seen in other NAHB surveys recently. At this point, the main challenge for builders in many parts of the country is finding enough buildable lots in desirable locations and workers with the necessary skill set to respond to the increased demand."

Improving Markets List Includes 247 Metros in August

NAHB Press Release

WASHINGTON, Aug. 6 - A total of 247 metropolitan areas across 49 states and the District of Columbia qualified for inclusion on the National Association of Home Builders/First American Improving Markets Index (IMI) for August, released today. While this is eight metros shy of the number listed on the IMI in July, it is approximately three times the number of metros that qualified for the list in August of 2012.

The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. Three new markets were added to the list and 11 dropped from it in August. Newly added metros this month include Kankakee, Ill., along with Atlantic City and Ocean City, N.J.

"In all, 244 metros that were listed as improving in July retained that status in August, and this is an encouraging sign of the continuing housing recovery," noted NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. "That said, we know that the pace of improvement is being hampered somewhat by challenges that builders and buyers are experiencing with regard to the availability of credit, materials, lots for development and labor."

"While the number of improving housing markets this August remains well ahead of the same month last year, the index is affected by seasonal softening in home prices just as we saw happen in 2012. The metros that fell off the list this month originally qualified with very small home price improvements that have since slipped back," explained NAHB Chief Economist David Crowe. "As house prices return to more normal levels in fully recovered markets, further IMI advancements will be more modest."

"Even with the small decline in the IMI this month, close to 70 percent of all U.S. metros are represented, and the geographic distribution of entrants continues to be very widespread," said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company. "These facts should be reassuring to today's prospective home buyers."

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three measures for at least six consecutive months following those measures' respective troughs before being included on the improving markets list.

A complete list of all 247 metros currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in August, is available at www.nahb.org/imi.

255 Metros Listed as Improving Housing Markets in July

NAHB Press Release

WASHINGTON, July 8 - A total of 255 metropolitan areas across 49 states and the District of Columbia qualified to be listed on the National Association of Home Builders/First American Improving Markets Index (IMI) for July, released today. This is down slightly from the 263 metros that made the list in June, but is more than triple the number of metros that were on it in July of 2012.

The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. Six new markets were added to the list and 14 were dropped from it in July. Newcomers include the geographically diverse metros of Cumberland, Md.; Saginaw, Mich.; Farmington and Las Cruces, N.M.; Kingston, N.Y.; and Olympia, Wash.

"This is the sixth straight month in which at least 70 percent of all U.S. metros have qualified for the Improving Markets Index," observed NAHB Chairman Rick Judson. "The relative stability of the IMI is representative of the broad recovery underway, which is much more extensive than what we were looking at one year ago."

"Despite slight ups and downs in recent IMI levels, an overwhelming majority of U.S. metros -- including those located in almost every state -- remain solidly on the path to recovery even as the pace of their improvement is slowed by ongoing challenges related to the availability of credit, labor, lots and certain building materials," added NAHB Chief Economist David Crowe. "Based on recent trends in home prices, housing permits and employment, the outlook for a continued housing expansion remains very positive for the remainder of 2013."

"The fact that more than two-thirds of all U.S. housing markets continue to be represented on the improving list should be a boon to consumer confidence at a time when many are looking to take advantage of today's very favorable mortgage rates," observed Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three measures for at least six consecutive months following those measures' respective troughs before being included on the improving markets list.

A complete list of all 255 metros currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in July, is available at www.nahb.org/imi.

2013 Reniassance Overall Grand Award Winner - New Commercial Division

Renovations Article for June 30, 2013

By: Karen T. Nakamura, CEO
Building Industry Association of Hawaii

The BIA Renaissance Building and Remodeling Awards, established in 1986, celebrates excellence in design and construction of new and remodeled projects in Hawaii. This showcase recognizes competing categories including Details, Kitchen & Bath, Landscape & Outdoor Living, New & Remodeled Commercial Building, New & Remodeled Residential Building, Public Works, Hawaii BuiltGreen™, Historical and Innovative Design & Construction. The 28th Annual Awards Ceremony was held on May 8th and 38 entrants from Maui, Molokai and Oahu represented an exciting year of statewide participation.

The entries were judged on creativity, use of materials, environmental & sustainability, functionality, design principles, value, interior space, overall quality and workmanship.

The highlight of the awards ceremony was the recognition of the top four Overall Grand Awards and the Carl Reppun Award. Today’s column will feature the winner of the Overall Grand Award in the New Commercial Division. The winner is Architects Hawaii, Ltd. for “WCC Library Learning Commons”.

2013 BIA Renaissance Overall Grand Award Winner in the New Commercial Division,
“WCC Library Learning Commons” by Architects Hawaii, Ltd.

The Windward Community College (WCC) Library Learning Commons serves as an academic center combining five previously separate campus buildings; including the library, learning center, instructional media service center, computing services and computer laboratory and the learning resource administration center. Exterior features that complement the Spanish Mission Revival campus architecture include decorative copper motifs, a red tiled roof and library placement in between the major existing trees. The interior of the center inspires interaction as a gathering space for the students while serving as an effective workspace for the staff. The lower level is a more public and noisy active zone with the circulation desk, the upper level offers quiet private study zones and the computer lounge, while open common spaces offer group study flexibility and mobile furniture. Natural daylight flows throughout the library to 75% of occupied spaces, and the first green library in Hawaii, is in the process of receiving Silver LEED certification.

Bill Signing Ceremony for S.B. 1077, Act 176, Owner-Builder Exemption

On June 25, 2013, Governor Abercrombie signed into law S.B. 1077, which sets forth specific responsibilities and protections for owner-builders. This exemption to Chapter 444 was established, and intended, for legitimate circumstances where homeowners had the requisite ability, time, and inclination to save money by performing their own home improvements and construction. However, and unfortunately, this exemption has been abused by unlicensed contractors, resulting in millions of lost tax revenue and leaves licensed contractors at a disadvantage because of the higher costs associated with running a legitimate contracting business. Act 176 benefits our construction industry, the State, and homeowners against unlicensed construction activity.

Governor Abercrombie with BIA Government Relations Committee Members

Governor Abercrombie with Greg Thielen, 2013 BIA President

New Plan Review Fees at DPP

Mayor Caldwell signed Bill 15 into Ordinance 13-16, which would increase certain permit fees at the Department of Planning and Permitting. Of particular concern to BIA members, Ord. 13-16 adds a fee of 20% of the value of the permit as a plan review fee, in addition to the building permit fee. BIA’s government relations committee had worked with DPP Director and Deputy Director, and submitted testimony during the entire process, recommending they consider other options. Unfortunately, despite BIA’s efforts, Bill 15 is now law.

View press release here.

Please see testimony here.

If you have any questions, please contact Gladys Marrone at 629-7509 or gqm@biahawaii.org.

CTC Instructor Spotlight - Larry Hawkins

From Castle & Cooke Homes Hawaii May 2013 Newsletter Article

 By learning you will teach; by teaching you will understand.
Latin Proverb

Larry Hawkins is working as an instructor with the Construction Training Center of the Pacific (CTC) at the BIA facilities. For six years he has been an instructor for the PACT (Pre-Apprenticeship Construction Training) program. PACT’s curriculum uses NAHB residential construction academy text and programs. This program works with the general public and sponsored by Community and Government agencies.

Larry has taught with the Probationary Department at the Federal Detention Center (near Honolulu Airport) and also taught at the Waianae Comprehensive Health Center with this program.

He is certified by NAHB to lead this PACT Program Residential Academy and is a Certified Green Professional thru NAHB.

Larry has given classes in plumbing, electrical, HVAC, building maintenance and green building fundamentals (sustainability).

As a teacher, Larry Hawkins uses his understanding of the many things involved in the building industry and enjoys relating it to his students. Currently, Larry is teaching Youth Build Programs for the State of Hawaii to about 70 students. In local Youth Build programs, low-income young people ages 16–24 work toward their GEDs or high school diplomas while learning job skills by building affordable housing for homeless and low-income people and participating in leadership development activities in their communities. Since 1994, more than 110,000 Youth Build students have produced over 21,000 units of affordable, increasingly green housing in rural and urban communities across the United States.

Ask him why he chooses to teach he simply says,

“I was given the opportunity to learn all that I could in this industry by very talented and knowledgeable individuals, and I want to pay back to my community and help others find their career path.”

 Someone once said - “Education is the most powerful weapon which you can use to change the world.” And Teachers are surely helping to change the world!

Senate Bill an Important Step Forward in Debate on Housing Finance Reform

NAHB Press Release

WASHINGTON, June 25 - Bipartisan legislation introduced today by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.) is an important first step in moving the dialogue forward on overhauling the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, and the U.S. housing finance system, according to the National Association of Home Builders (NAHB).

"We applaud Sens. Corker and Warner, along with Sens. Jon Tester (D-Mont.), Mike Johanns (R-Neb.), Heidi Heitkamp (D-N.D.), Dean Heller (R-Nev.), Kay Hagan (D-N.C.) and Jerry Moran (R-Kan.) for crafting comprehensive legislation to reform the mortgage finance system," said NAHB Chairman Rick Judson, a home builder and developer from Charlotte, N.C. "This bill will advance the debate on GSE reform in an earnest manner."

The Housing Finance Reform and Taxpayer Protection Act of 2013 (S. 1217) contains several elements recommended by NAHB to restructure the nation's housing finance system, such as retaining a federal backstop while limiting taxpayer exposure.

A stable and reliable housing finance system is vital to a vibrant housing market and sustainable economic recovery. Currently, Fannie Mae, Freddie Mac and the Federal Housing Administration guarantee or insure more than 90 percent of all home mortgage activity. This is not sustainable or desirable as NAHB believes the private sector must play a greater role.

"As private lenders gradually re-enter the mortgage market, it is essential that the federal government plays a proper role in backing up the nation's housing finance system to ensure liquidity and stability for homeownership and rental housing," said Judson.

"We look forward to participating in the discussions to reform the mortgage finance system as the bill moves forward," he added.

New-Home Sales Rise 2.1 Percent in May

NAHB Press Release

WASHINGTON, June 25 - Sales of newly built, single-family homes rose for a third consecutive month in May, posting a 2.1 percent gain to a seasonally adjusted annual rate of 476,000 units, according to data released by HUD and the U.S. Census Bureau today. This is the fastest sales pace recorded since July of 2008.

"Builders are reporting increased demand for new homes as buyers seek to take advantage of historically low mortgage rates while they remain so favorable," observed Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. "Consumers in markets nationwide are definitely becoming more confident about making a home purchase as firming prices and tighter inventories provide further evidence of the ongoing housing recovery."

"Today's report confirms that the improvement we have been seeing in housing markets over the past year continues to take place at a gradual and steady pace," said NAHB Senior Economist Robert Denk. "We expect to see more of this positive momentum in the coming months, tempered by the caution that builders are exercising to avoid getting ahead of demand along with ongoing constraints they face with regard to the availability of credit, materials, lots and labor."

Three out of four regions posted sales gains in May, with double-digit increases of 20.7 percent and 40.7 percent in the Northeast and Midwest, respectively, and a more moderate, 3.6 percent gain in the West. The South posted a 9.0 percent decrease following an unsustainably large gain in the previous month.

The inventory of new homes for sale edged up slightly to 161,000 units in May, which is a 4.1-month supply at the current sales pace.

OSHA announces new National Emphasis Program for occupational exposure to isocyanates

OSHA Press Release

WASHINGTON – The Occupational Safety and Health Administration today announced a new National Emphasis Program to protect workers from the serious health effects from occupational exposure to isocyanates. OSHA develops national emphasis programs to focus outreach efforts and inspections on specific hazards in an industry for a three-year period. Through this NEP, OSHA will focus on workplaces in general, construction and maritime industries that use isocyanate compounds in an effort to reduce occupational illnesses and deaths.

“Workers exposed to isocyanates can suffer debilitating health problems for months or even years after exposure,” said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. “Through this program, OSHA will strengthen protections for workers exposed to isocyanates.”

Isocyanates are chemicals that can cause occupational asthma, irritation of the skin, eyes, nose and throat, and cancer. Deaths have occurred due to both asthma and hypersensitivity pneumonitis from isocyanates exposure. Respiratory illnesses also can be caused by isocyanates exposure to the skin. Isocyanates are used in materials including paints, varnishes, auto body repair, and building insulation. Jobs that involve exposure to isocyanates include the spray-on polyurethane manufacturing of products such as mattresses and car seats, and protective coatings for truck beds, boats, and decks.

OSHA’s Web page on Isocyanates provides additional information on recognizing potential hazards, as well as OSHA standards that address isocyanates in the general, construction and maritime industries.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit www.osha.gov.

Hawaii Building Industry Foundation receives grant from Haseko Training Fund

HONOLULU - The Hawaii Building Industry Foundation (HBIF) has received a $15,000 grant from the Haseko Training Fund which is administered by the Hawai’i Community Foundation to support its work force development efforts. This grant will offer adults 18 and older in the Ewa Community an opportunity to participate in a pre-apprenticeship construction training project named ComPACT: “Building Skills to Build Lives”.

Karen Nakamura, Executive Director of the Hawaii Building Industry Foundation stated, “This generous grant from the Haseko Training Fund will support our community educational outreach programs. We target non-traditional students who are unemployed and under-employed, so these funds will provide opportunities for participants to gain the necessary knowledge and job skills for entry level positions in the construction industry.”

Project ComPACT is scheduled to begin in July 2013 and scholarships are still available. Download an application here.

For more information, contact Barbara Nishikawa at (808) 629-7505 or email BLN@biahawaii.org.