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Chuck Miller GMB CGB CGP MIRM CMP MCSP CSP

Green Building Program Needs Verifiers

As green building grows in notoriety, how can you be assured that your new home or remodel is truly Green. You need to insist that your Builder's or Remodeler's claims are checked by an accredited, third-party certifier.

The Building Contractors Association of Southwestern Idaho (BCASWI) has formed a Green Building Council to encourage builders to adopt the NAHB National Green Building Program which offers innovative, resource-efficient building techniques, while preserving affordability. One key element of NAHB's suite of green building tools is their green home certification program, which is administered by the NAHB Research Center. The Research Center will accredit home certification program verifiers and act as the sole home certifying body for the National Green Building Program.

The NAHB Research Center is seeking interested, qualified individuals to become green building field verifiers the program. As the sole certifying body under the NAHB's National Green Building Program, the Research Center is responsible for training and accrediting eligible individuals to verify that homes across the country meet the criteria of the national certification program.

Verifiers accredited by the NAHB Research Center will, through a process of document review and on-site inspections, independently confirm that all green program requirements and points specified by the Builder or Remodeler are in place before a home is accredited.

If you are interested in becoming a verifier, you must have prerequisite training or experience that provides you a baseline understanding of general home building practices and specific green building knowledge. Specific types of experience that meet this eligibility requirement include:

One year of acceptable professional experience in home building and green building practices (the NAHB Research Center will determine what experience meets the acceptable level), or

At least 12 hours of green training approved by the NAHB Research Center, or

Designation by the NAHB as a Green Building Professional, or

Professional certification from Green Advantage (Green Advantage is a strong supporter of the U.S. Green Building Council and USGBC chapters), or

NARI Green Building Certification from National Association of the Remodelers Industry (NARI), or

RESNET Green Rater Certification, or

LEED Accredited Professional Certification from the U.S. Green Building Council

In order to become accredited by the NAHB Research Center, you must participate in training administered by the Research Center-either in person, via Web cast, or via self-guided online materials-and pass a verifier accreditation test. The course covers the protocol for verifying that a house meets the national certification program requirements and is intended to ensure that all verifiers across the country evaluate homes in a consistent manner. This training does not include developing the green expertise each prospective verifier is expected to have as a prerequisite.

In order for our local Green Building program to work, we need accredited verifiers. If you are interested or know someone who might be interested, you can learn more at http://www.nahbgreen.org/Certification/becomeverifier.aspx. Or you can call the NAHB National Green Building Program Hotline at 877-NAHB-GRN.

If you are a consumer and want to learn more about the NAHB National Green Building Program, you can visit the website www.nahbgreen.org or you can call or email me.

Chuck Miller GMB CGB MIRM CMP MCSP CSP

President / Builder - Chuck Miller Construction Inc.

(208) 229-2553

chuck@chuckmillerconstruction.com

Is it Easy Being Green?

Kermit the Frog doesn't think so. But like a lot of things, it depends on who you ask. If you ask me, my answer would be "Yes, it is easy and it's getting easier."

In a new survey, which polled 1,001 U.S. homeowners, 28 percent of respondents said they believe it's extremely important to be environmentally responsible. But is it hard to build green? Do you have to live in a straw-bale cottage or some other strange building to say you're a green home owner? The answer is NO and NO.

In February, the National Association of Home Builders (NAHB) launched the NAHB National Green Building Program at the International Builders' Show® in Orlando, Fla. The new program helps to demystify the process and debunk the myths of green building for consumers and home builders. The NAHB program is designed to accelerate the movement of residential green building into the mainstream.

The program has an easy-to-follow checklist on its Web site - http://www.nahbgreen.org/ - to help make it easier for builders and consumers to include the seven essential elements of green building: energy efficiency, water efficiency, resource efficiency, indoor environmental quality, effective lot and site development, minimal global impact and homeowner education and maintenance.

Along with the checklist, builders and home buyers will find a wealth of resources on the site to help make green building a reality, including links showing how environmentally-friendly products and materials work.

Is it a lot more expensive? The survey revealed that 32% of U.S. consumers consider purchasing more expensive renewably sourced products to help deter global warming; and nearly 65% of U.S. consumers said they are willing to pay 5 percent more for products made with renewable resources. Whether you're considering building a new home, or just want to make your existing home more environmentally-friendly, you can take steps to go green that won't break the bank.

Many green elements can be included during the building design process. Using the Systems Engineering Approach to Home Design and Building we are able to design homes that are cost effective to build as well as energy and resource efficient. In fact, the energy consumption of new houses can be reduced by as much as 50% with little or no impact on the cost of construction.

Now more than ever, you can find a wide range of green building products in the marketplace to help achieve your goal of being more environmentally responsible. These green building products include green insulation products, like GreenFiber's Cocoon Cellulose Insulation made from 85% recycled paper fiber, mostly recovered post consumer content; BioBased spray foam insulation made from soybean oil, an annually renewable resource, produced by over 600,000 farmers, right here in the U.S; or UltraTouch fiber insulation made from recycled denim; energy-efficient windows and doors; energy-efficient furnaces, air conditioners, and water heaters; energy-efficient appliances; chemically neutral low VOC (volatile organic compound) paints; flooring; and natural landscaping products. Mst, if not all, home improvement stores carry a full line of compact fluorescent bulbs which use 70 percent less energy. And advances in green technology like solar roof panels and shingles and wind turbines have made these items less expensive.

The Building Contractors Association of Southwestern Idaho (BCASWI) has just formed a Green Building Council to promote the NAHB Green program to educate our members and consumers and encouraging builders to adopt the NAHB National Green Building Program which offers innovative, resource-efficient building techniques, while preserving affordability.

"We're bringing green building into mainstream home construction," said Steve Martinez, BCASWI President and local home builder. "Builders can do a tremendous amount to make homes more environmentally friendly, without pricing them out of the reach of the average homebuyer. The goal of our Green Building Council will be to educate builders and consumers about building green."

This summer, the BCASWI will begin offering the NAHB University of Housing's Green Building for Building Professionals course, leading to the Certified Green Professional designation - your assurance of commitment to continued education of the green building process.

But you don't have to wait to learn more about being green. You can visit the NAHB Green website at http://www.nahbgreen.org/. You can download a free guide at www.nahb.com/greeninnovation, or you call or email me.

Chuck Miller GMB CGB MIRM CMP MCSP CSP

President / Builder - Chuck Miller Construction Inc.

(208) 229-2553

http://www.chuckmillerconstruction.com/

Report Determines Housing in Boise “Moderately Overpriced”

The recent report for the fourth quarter of 2007 found the price of housing in Boise “moderately overpriced.” So what does that mean with regard to the risk of future price declines? Before I begin, I would like to emphasize that I adhere to the advice of the sixth century Chinese sage Lao Tzu. My intent is simply to share a little knowledge and offer a few observations. I am not making any predictions. National City Corporation and Global Insights, an economic research firm, publish a Housing Valuation Analysis in which they evaluate single-family house prices in 330 metro areas to determine the extent to which housing in those markets is under or overvalued. That report designated the Boise metro area “moderately overvalued.” Metro areas with valuations below the historically normal range, that is below -15 percent, are considered “undervalued.” Twenty-six of the 330 metro areas (7.8%) were actually considered “undervalued” in the 4th Quarter of 2007. Metro areas with valuations in excess of +32 percent are designated as “overvalued.” Twenty-one of the 330 metro areas (6.3%) were considered “overvalued” in the 4th Quarter of 2007, but this was down from a peak of 58 metro areas during the fourth quarter of 2005 and the second quarter of 2006 (a reduction of 11.2%). “Overvalued” markets present a risk of substantial future price declines (10 percent or greater). Metro areas with valuations between ±15 percent are consistent with the study’s standard deviation of the historically normal distribution and are considered “fairly valued.” Metro areas between “overvalued” and “fairly valued” are areas above the historically normal range of +15 percent, like Boise, and are designated “moderately overvalued.” While “moderately overvalued” markets have values above the historically normal range, they present very little or no risk of substantial future price declines. National City Corporation and Global Insights employ a statistical technique to evaluate single-family house prices to determine “fair value” in the housing market. “Fair value” contrasts with financial asset valuation or “intrinsic value.” Unlike the Case/Shiller index which only considers the 20 largest housing markets in the U.S.. the National City Corporation and Global Insights study evaluates 330 metro areas which collectively account for 93 percent of all existing single-family housing units and 78 percent of all related real estate value, as of the fourth quarter of 2007. Their approach is statistical in orientation, examines a particular historical period — Q1/1985 to Q4/2007 — and accepts that house prices, on average, adhered to some normal relationship to underlying determinants during that time. The study examines the ratio of home prices to household incomes and attempts to explain the variation in that ratio as a function of four key determinants: Household Population Density, Conventional Mortgage Rates, Relative Income Level, and something they refer to as Constant. Constant is a value they calculate for each metropolitan area to control for historically observed differences in metro area price-to-income ratios that are not explained by the other three determinants. These values reflect a variety of difficult to quantify, but nonetheless important, factors that influence prices including pollution, climate, expected property price appreciation, cultural amenities, school systems, miscellaneous costs, (e.g. tax and utility rates) and geographic location. The data for the Boise MSA suggests that housing in the 4th quarter of 2007 was overvalued by 26.1%. But the study cautions against assuming that a particular degree of overvaluation implies that house prices are destined to decline by that amount. For example, the observation that Boise, Idaho is overvalued by 26.1% should not be assumed to imply that prices here are headed for a 26.1% drop. They explain that this is not necessarily correct for the following reasons: • Housing markets tend to adjust very gradually and price declines, when they occur, have historically averaged 18 quarters in duration. Because house prices determinants generally improve over that time (especially population density and incomes), price declines are typically about one-half the initial degree of overvaluation. • Historically normal dispersion of valuations is quite wide and their model has a standard deviation in house price valuations of +/-15 percent, meaning that any valuation between 15 percent overvalued and 15 percent undervalued should be considered statistically normal. The report includes data on past price corrections in metropolitan areas over the past 23 years. It defines price corrections as declines of at least 10% over a period of at least 8 quarters. Only 102 of the 330 markets have experienced severe enough price corrections to be included in the report. The peak valuation in those 102 markets ranged from 98.5% in Midland Texas in the 2nd quarter of 1986 to a -0.9% for Merced, California in the 4th quarter of 1990. The price corrections ranged from a decline of 35% over 20 quarters in Anchorage, Alaska from the 2nd quarter of 1985 through the 1st quarter of 1990 to a decline of 10% over 23 quarters in Napa, California from the 3rd quarter of 1991 through the 1st quarter of 1997. For the 102 markets, the median or typical degree of overvaluation was +32.1% and the typical correction episode saw a median decline of 17% over a median duration of 16 quarters. Chuck Miller GMB CGB MIRM CMP MCSP CSP President / Builder – Chuck Miller Construction Inc. (208) 229-2553 www.chuckmillerconstruction.com

Is condominium living right for you?

Condominium Living Offers Convenience, Amenities and a Good Return on Your Investment.

Is condominium living right for you? According to the National Association of Home Builders (NAHB), condos are now an important housing option for home buyers nationwide. At the height of last year’s wave of new condominium construction, condos represented nearly half of all new multifamily building, with that rate forecast to stabilize at about a third of the multifamily market by late 2008.

Why are people choosing condominium ownership? Many home buyers find that condos offer advantages that a traditional single-family home doesn’t.

Many empty nesters thinking about enjoying their freedom now that the kids are out of the house are purchasing condos. Active seniors—especially those who once lived in urban areas—are returning to downtown areas, leaving behind the larger house, yard maintenance and the daily commute. If you fall into this category, you may want to opt for a smaller, easier-to-manage condominium home that’s not only close to your job, but also near shopping, dining and entertainment.

Baby boomers anticipating retirement frequently purchase condominiums or townhomes in areas offering a favorable climate, a variety of recreational opportunities, cultural attractions and easy access to good medical facilities. Some purchase condominiums or townhouses near their grown children and grandchildren. These may be primary residences or secondary homes. Keeping a second home tidy and undisturbed when you are not there can be a hassle. However, when you purchase a condo most of the unit’s upkeep is covered by your monthly condo fee, whether you are there or not.

As I have noted in previous blogs, most of the rapid unsustainable appreciation in the price of houses in the past few years was the result of increases in the cost of land. An NAHB study on construction costs for single-family homes in 2007revealed that the raw land cost represented 10% of the cost of a new home. Because condominiums and townhomes projects typically are higher-density developments (more living units per acre) than single family detached home projects, the raw land cost is spread over more units. For this reason, the cost of condominium is generally less than that of a single-family detached home of similar size and quality.

Even though rates have risen slightly, mortgage interest rates are still near a 45 year low. Young people may find that purchasing a condo as their first home can be both more financially attractive and more feasible than you might have anticipated. They may consider the purchase as a step towards affording a more substantial residence later. Many of today’s condos are located in downtown in neighborhoods where young professionals congregate.

Condo can also be a good stand-alone investment. You might find that it makes financial sense for you to purchase a condo in a university community like Boise as an investment – one that can be used by your child during his or her college career, then rented or resold after graduation. You could purchase a smaller used single family home, but multifamily developments built to be sold as condominiums often feature value-added amenities and services not found in older existing neighborhoods.

I don’t know about you but I have can think of much more enjoyable ways to spend my evenings and weekends than mowing the lawn, pulling weeds, or cleaning the gutters. That’s why I chose a condominium. When you invest in a condominium, many everyday maintenance activities are no longer necessary, and the few that are generally are covered by your monthly condo fee.

Are you empty-nesters or soon to be empty-nesters? Is your current home larger than you need or will it soon be? Are you retired or nearing retirement? Do you travel frequently on business or vacation? Are you busy professionals who value your free time? Are you a younger buyer looking to purchase their first home? If you answered yes to any of these questions, condominium living might be a good bet.

If you think condominium living might be right for you, I know of two very nice new condominium units in Hidden Springs with more on the way. You can view them both right here on BuildingCredibility.com or you can visit my website.

Interested in a more urban lifestyle, check out Bryant Forrester’s blog right here on BuildingCrediblity.com visit his website http://www.boisecondosandlofts.com/ or contact Bryant directly at (208) 342-2700.

Chuck Miller GMB CGB MIRM CMP MCSP CSP

President / Builder – Chuck Miller Construction Inc.

(208) 229-2553

http://www.chuckmillerconstruction.com/