At NAHB’s urging, Reps. Chris Pappas (D-N.H.), Brian Fitzpatrick (R-Pa.), Gil Cisneros (D-Calif.) and Greg Steube (R-Fla.) have introduced legislation that would allow trade associations that serve the home building industry — including the hundreds of home builder associations throughout the nation — to access small business loans under the next round of funding for the Paycheck Protection Program (PPP).

NAHB has been working diligently to ensure that as Congress develops the next economic relief package, it takes additional steps to ensure broader builder eligibility under the PPP so that land developers, multifamily property owners and state and local HBAs have access to this loan program.

The bill introduced today would allow 501(c)(6) nonprofits now experiencing their own financial challenges brought on by COVID-19 to be eligible for PPP small business loans.

In a statement commending the four lawmakers for introducing the bill, NAHB Chairman Dean Mon said: “Ensuring that trade associations that serve the industry have access to the PPP will allow them to provide critical resources and support to the small home building firms that are on the front lines working to provide sorely needed housing for Americans as the nation moves forward during this pandemic. We urge the House to move swiftly to pass this legislation and for the Senate to follow suit.”

A newly released NAHB study shows that the average gross profit margin for remodelers rose in 2018 to 30.1% — which was the highest it has been in nearly 30 years. Meanwhile, the average net profit margin in 2018 (5.2%) was essentially unchanged from the years prior, largely due to higher operating expenses.

NAHB predicts that over the next few years, remodeling expenditures will continue to grow but at a more gradual pace. These findings and more are included within NAHB’s 2020 edition of the Remodelers’ Cost of Doing Business Study. The report is published periodically to help remodelers and general contractors better gauge how their businesses stack up against the competition.

“The new version of this publication, offers remodelers a great way to benchmark their business financials in comparison to other similar businesses across the country,” said NAHB Chairman Dean Mon, a home builder and developer from Shrewsbury, N.J.

To conduct the study, NAHB’s economics and business management experts collected and analyzed the financial statements for fiscal year 2018 from thousands of remodelers across the country. The study provides detailed information on important indicators, including:

• Gross and net profit
• Assets and liabilities
• Owners’ equity
• Financial ratios

The analysis also compares remodelers’ performances based on business model, such as general remodeler versus design-build remodeler.

The Remodelers’ Cost of Doing Business Study, 2020 Edition is available for purchase* at BuilderBooks.com. Print editions are $79.99 for NAHB members, $149.99 for non-members. E-pub versions are $55.99 for NAHB members, $89.99 for non-members.

For additional insights about the challenges of adapting to today’s evolving business environment, all housing industry professionals — and especially remodelers — are encouraged to tune in on Wednesday, May 13, for the “Remodelers REBOOT” virtual event. Various discussions will take place from 9:30 a.m. to 5 p.m. ET. Registration is open to all, and free for NAHB members. Recordings will also be available following the event for those who register.

*During the month of May, all purchases of this study can receive a 20% discount by entering discount code NWREM20 at checkout. The discount cannot be applied to prior purchases or combined with other discounts. 

NAHB, as part of the A Call To Invest in Our Neighborhoods (ACTION) Coalition, sent to congressional leaders a letter urging them to stabilize the affordable housing system by including provisions to support the Low-Income Housing Tax Credit (LIHTC) and mitigate the damage to affordable housing production that is already occurring as a result of the COVID-19 crisis.

There is a severe shortage of affordable rental housing in the United States, and the COVID-19 pandemic has only exacerbated this growing crisis. The need to keep affordable housing production moving forward is even greater with more than 30 million individuals and counting who have lost their jobs, while one in four renters were already struggling paying more than 50% of their income in rent prior to the pandemic.

The coalition requests the following for the next relief package:

• Enact a minimum 4% housing credit rate.
• Lower the “50% test” bond financing threshold for 4% Housing Credit developments

Fiscal policies pursued by the government to stabilize the economy have driven the 4% credit rate down to all-time lows. For April, the rate was 3.12%; for May, the rate is now 3.08%, breaking the record low set in April. This is an unprecedented drop and direct consequence of COVID-19. And this record-low rate is unlikely to change in the short term, which is why relief is needed.

Going forward, the coalition has also requested the Congress explore increasing the annual housing credit allocation by 50%, and providing additional basis boosts for vulnerable properties impacted by COVID-19, including housing bond-financed properties that have felt the financing crisis most acutely.

The full coalition letter is available on nahb.org.

For more information, contact J.P. Delmore.

In real estate, they say the most important elements are: location, location, location. Similarly, when it comes to business development, S. Robert August, MIRM Fellow, CMP, CSP, MCSP, CAASH, president of Denver-based North Star Synergies, has a mantra of his own:

“The three most important components in business are: contacts, contacts and more contacts,” he says.

Throughout a career spanning more than four decades, August’s zeal for networking has driven much of his success in the business world. It’s also directly led to a record-setting number of new memberships and member retentions within NAHB: Earlier this year, August surpassed a lifetime total of 4,000 Spike credits — more than any other member in the Federation’s history.

A Spike is any member of a local association who recruits and helps retain new members. Spikes accrue points based on their recruitment and retention efforts.

“As an advocate for both recruitment and retention, Robert is a living embodiment of membership,” said Membership Committee Chair Rich Robinson. “His commitment to the success of our Federation is not only exemplary — it’s now legendary. Robert is never afraid to make the ask, knowing that [membership] would offer tremendous benefits to that non-member both personally and professionally.”

Giving Back

Staying focused on membership at such a high level is August’s way of giving back to the industry. He largely credits NAHB and the HBA of Metro Denver for providing him with the opportunities, knowledge and resources that have helped his business thrive.

“My memberships with our local association and NAHB have meant so much to my career,” August said. “For me, it’s not about receiving awards or other acknowledgments, but rather, making countless connections and developing great relationships with industry leaders whom I’ve helped and, in turn, have helped me. That’s what membership is all about — sharing knowledge and leaning on the experiences of a multitude of talented people, all of whom can help each other’s businesses grow.”

August makes a compelling case when touting the benefits of membership. And with a continually expanding professional network over the decades, he says finding prospective members was never the hard part. From his perspective, the biggest challenge has always been “finding those who are willing to roll up their sleeves, volunteer their time and give back” to the industry.

With that in mind, August is always very forthright with prospective members: “I tell people up front that they should only become a member if they truly want to get involved. For those who are, it leads to higher retention and an even more valuable membership experience because the more you give, the more you get in return.”

Maintaining Communication

August acknowledges that member outreach and recruitment might seem daunting to some, but that it doesn’t require you to be a salesperson. He says that by simply staying in touch with people to ask how they are doing and if they need anything can make a big impact.

“Nothing positive or productive in business happens without direct communication,” August said. “I maintain open lines of communication with everyone, whether that’s by [virtual] or in-person meetings, or by phone, email, etc. Now more than ever, it’s critical to stay in touch with friends and colleagues, as well fellow HBA members, former members, prospective members and especially new members.”

Looking Forward

August says that despite the current uncertainties around the world and particularly throughout the housing market, his membership ties provide the extra reassurance he needs.

“These are especially challenging times as we all try to learn a new business normal,” August said. “NAHB is what unites our industry locally, nationally and internationally, and I am confident the NAHB leadership will continue to guide us into the future with positive results, as they’ve done consistently throughout the last 75-plus years!”

Members can log in to nahb.org for more information about the NAHB Spike Club, as well as access resources to support member recruitment and retention.