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

Stephanie Pagan

Builder confidence in the 55+ housing market for single-family homes had a significant increase in the first quarter of 2012 compared to the same period a year ago, according to the latest National Association of Home Builders' 55+ Housing Market Index released today. The index increased 10 points to 27, and although 27 is relatively low for an index that lies on a scale of 0 to 100, it is nevertheless the highest reading since the inception of the index in 2008.

"We continue to see increased optimism from builders and developers in the 55+ housing segment," said NAHB 50+ Housing Council Chairman W. Don Whyte. "We are servicing the largest growing group of buyers that we have ever seen in this age category, and it is a population that is dramatically different from what it was only a few years ago. This creates an opportunity for builders and developers in this market to create communities that address the specific needs of the 55+ consumer."

The 55+ single-family 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 index components remain well below 50, but increased considerably from a year ago, each reaching an all-time high: Present sales rose 12 points to 27, expected sales for the next six months increased eight points to 32 and traffic of prospective buyers rose nine points to 26.

The 55+ multifamily condo HMI remains the weakest of the 55+ housing market indices, but also recorded an all-time high at 15, up seven points from a year ago. All index components showed an increase compared to a year ago: Present sales rose five points to 14, expected sales for the next six months increased seven points to 20 and traffic of prospective buyers jumped nine points to 15.

The 55+ multifamily rentals continue to lead the way in the overall 55+ housing market. Present production climbed 11 points to 31, expected future production increased eight points to 35, current demand for existing units rose three points to 42 and expected future demand increased one point to 45.

"Like the overall single-family housing market, the 55+ housing segment is facing a slow but steady recovery," said NAHB Chief Economist David Crowe. "Consumers are starting to see the resale market show some improvement, which allows them to start thinking about moving into 55+ housing."


The National Association of Home Builders is a Washington-based trade association representing more than 140,000 members involved in remodeling, home building, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.

My Internship with The Builders - My One Month Analysis

-Andrew Pegram

During my month with the Builder’s Association, it has become apparent to me that anyone in the construction industry or business trades in Nevada would benefit from membership.

Among the many benefits, BANN provides a legal voice in the legislative arena. It also offers regulatory assistance and worker’s compensation savings, and while it isn’t member-specific, the free education BANN provides is invaluable in this economy.

In the book 7 Habits of Highly Effective People, Stephen Covey says interdependence, or working with the help of others, is vital. BANN provides countless opportunities for networking and forging interdependent relationships. These range from formal committee meetings to outdoor barbecues and luncheons. Meet-and-greets are often undervalued, but their worth is beyond measure.

I met the mayor, a representative of the Business Environmental Program, and a professional photographer; the latter was even willing to teach and work with amateur photographers. You never know who you will meet, or what opportunity might arise!

Another important benefit is the chance to give back to the community through BANN. An excellent opportunity is being a mentor for the C-CORE Program, where you guide young students and help educate them on the construction industry. You can also volunteer at a fundraiser, or participate in Homes for Our Troops, where you can help to build and donate a custom home to a gravely wounded soldier in the Armed Forces.

BANN is a great organization. Membership has many rewards and can be a means of giving back. At BANN, there truly is strength in numbers!

Chapter 11 verses Chapter 7. What is the difference?

-  by Caryn Tijsseling & S. Paul Edwards

Construction-related bankruptcy filings continue to increase in these troubled economic times.  In fact, there seems to be no end in sight.  It is critical in today’s economic environment for contractors, subcontractors and suppliers to understand basic bankruptcy principles so they can protect their potential claims against projects that enter bankruptcy.  

This blog series will address those basic principles so that you are prepared when your construction-related business is suddenly owed money by an insolvent and bankrupt project.

            The first bankruptcy concept to understand is the difference between Chapter 11 versus a Chapter 7 bankruptcy filing.  Federal law governs all bankruptcy proceedings.  The United States Bankruptcy Code’s goal is to provide an insolvent entity the opportunity to reorganize its operations, or to liquidate its assets, while treating all of its similarly situated creditors equally.  The initial notice of bankruptcy will indicate the Chapter under which the bankruptcy is being filed.  There are several types of bankruptcy, but a construction project is most likely to file for protection—become a “debtor”—under either Chapter 11 or Chapter 7 of the Code. 

A Chapter 11 bankruptcy allows the debtor to reorganize its financial affairs and, hopefully, return to economic viability.  Under Chapter 11 bankruptcy protection, the business generally continues to operate while attempting to return to profitability.  If you are owed money from a debtor that has filed a Chapter 11, there is a good chance you can recover at least a portion of what is owed.

The goal of a Chapter 7 bankruptcy is significantly different.  In a Chapter 7 bankruptcy, the business comes to an end.  The bankruptcy trustee marshals the debtor’s assets, sells them to pay the business’ creditors to the extent possible, and the business closes its doors.  If the debtor files for Chapter 7 protection, it is less likely that there will be any recovery.

Understanding these basic differences is important in order to determine the likelihood of recovery and the appropriate actions to take in order to maximize any potential recovery. 

Ms. Tijsseling is a partner in the Lewis and Roca LLP Litigation group. She focuses primarily on construction, bankruptcy and creditors’ rights, and employment matters.

Mr. Edwards is a senior associate in the firm's Litigation and Bankruptcy Practice Groups. His practice focuses primarily on complex commercial 

litigation in federal and state courts throughout Nevada.

We Have a New 2012 Board!

The Builders Association of Northern Nevada (BANN) elected new leadership for the association’s board for 2012. BANN represents the collective interests of the construction industry in Northern Nevada. The association offers programs of information, training and education to all construction professionals. Because of its active approach to the region's housing needs, the Builders has grown to become the largest construction trade association in the state of Nevada.

The BANN Board for 2012:

President – Travis Means, Homecrafters

Vice President – John Krmpotic, KLS Planning & Design

Associate Vice President – John Brown, NV Energy

Secretary/Treasurer- Teresa DiLoreto, DiLoreto Homes 

Immediate Past President – Curtis Rowe, Aspen Developers

Additional Board Members

Jack Byrom, TMWA

Mike Douglas, Q & D Construction

Victor Rameker, Desert Wind Homes

Kraig Knudsen, Tanamera Development

Greg Peek, ERGS

Ray Pezonella, Pezonella Associates

Rob Dunbar, Ryder Homes

John Tolbert, Toll Brothers

Robb Wong, Guidenby

John Schroeder, J & N Nevada

Michael Ellis, Reno Truss

Jeff Codega, Codega Concepts

Randy Walter, Places Consulting

Gary Duhon, Downey Brand

Garrett Gordon, Lewis & Roca

Ty Windfeldt, Hometown Health

Membership Chair – Victor Rameker

Legislative Chair – Greg Peek

Codes, Infrastructure & Planning Chair – John Krmpotic

Sales & Marketing Council & PR Chair– Teresa DiLoreto

Remodelers/Built Green Nevada Chair – Robb Wong

City of Sparks Council Takes Giant Step to Promote Economic Recovery

At a recent City of Sparks Council retreat, the City Council requested staff to look at amendments to the development codes to remove barriers to development and job creation.  In response, the city staff prepared a resolution to amend fees for development services such as Special Use Permits, Site Plan Reviews, Code Amendments, and Tentative Maps. 

On October 10^th the Council approval the resolution with an added specific review period of six months and fee caps which limit collects not to exceed current amounts.

Currently, there are three types of Special Use Permits:

• Major
• Routine
• Minor.

These three delineations are based on the amount of staff time typically devoted to the type of special use permit. For example, a major Special Use Permit for a new casino in the TC (Tourist Commercial) zoning district. A minor Special Use Permit might be an amendment to a previously approved Special Use Permit. A major requires a $10,000 deposit, a routine is $13,385 and a minor is $7,495. 

Sparks will eliminate the different types of Special Use Permits and simply charge applicants a fee of $120 per hour of staff time. They will require a deposit of $1250  for a Special Use Permit. Staff will be required to track time associated with the entitlement and charge toward the deposit. If the project requires more time than the deposit provided staff will bill the applicant for the remaining fees. 

This is the process used when reviewing Planned Development Handbooks. If less time and materials are required the remainder of the deposit will be refunded (as is with a handbook review process.)  Under no circumstance will the fees exceed the current fee schedule.

The Site Plan Review fee is very similar to that of the Special Use Permit. Currently there are two types of Site Plan Reviews: routine and minor. The fee associated with a routine Site Plan Review is $6,975 and a minor is $4,250. The purpose of a Site Plan Review is to determine whether a proposed use, building, structure addition or change to any building, structure or use will conform to the zoning ordinance, building and fire codes. 

The Site Plan Review insures development provides an acceptable project serving the interests of public health, safety and general welfare. The Site Plan Review process is an administrative process and does not include public hearings. The Council approved removal of the two types of Site Plan Reviews and will require a deposit of $1,250 to move through the process. Again, this $1,250 deposit would be time and material based and requires staff to track time to charge against the deposit. If City costs exceed the deposit amount the applicant would be billed for the remaining charges.

Lastly, the Council approved revising the fee for review of an expired Tentative Subdivision Map. The fee is currently $16,050. As described above with Special Use Permit and Site Plan Review, staff is proposing a fee for review of an expired Tentative Subdivision Map based on time and materials with a deposit of $1,250.

The Builders Association of Northern Nevada applaud the City of Sparks for the insight and leadership in promotion of the economic stability and job creation.