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Letter From Doug Selby (1st VP of the BRAG Ann Arbor), to the Membership
To: Fellow Members of BRAG Ann Arbor
I invite you to attend the following event:
http://www.annarborusa.org/events/details?e=10256
As an emerging industry, I think builders and remodelers especially should know more about this value-added service they can provide for their clients, or as an extension of their current business. There's a lot of programs upcoming and it would behoove them to know how they can take advantage of front-end financing through Michigan Saves and the federal Homestar program when it's enacted. This information will apply to realtors and other trades specialties within the building industry as well.
Regarding the Homestar bill, our members could also provide critical support in lobbying congress for speedy enactment of this bill, which will result in flood of homeowner demand. It generates much more income to the federal government over 10 years than it costs and will spur the building and manufacturing industries. It will also help the United States get started down the road to mitigating the enormous energy waste that is built into our building infrastructure, putting more money into local economies. I would very much like to see Michigan get our fair share of the program.
Homestar has been added to a stripped-down energy bill that is slated to go before the Senate this summer/fall. It has already passed the House in a bipartisan fashion by a wide margin, and there are a few Senate Republican co-sponsors. It really is a win-win for just about everyone, and calls to Senators would be timely THIS WEEK.
For more information, go to:
http://www.efficiencyfirst.org/about/
Thanks everyone, and I hope you and other interested BRAG members can make it to the SPARK event to learn more about this emergent industry.
Best,
Douglas Selby
Michigan Appliance Rebates Increase
The Michigan Appliance Rebate program still has incentives available, but dollars are limited. To date, 49% of the program funds for refrigerators, clothes washers, and dishwashers have been spent, with approximately 50,000 rebates being issued to Michigan residents. The furnaces and water heaters program has spent approximately 5%, with approximately 150 rebates being issued to Michigan residents. DOE has recently approved a rebate increase for this portion of the program. Rebate levels have increased for the following products: 1) Propane Furnaces-increase to $500, 2) Propane Water Heaters-increase to $300, 3) Oil Furnaces-increase to $500, and 4) Solar Water Heaters-increase to 25%, maximum of $2,500. Residents who already received a rebate will get an additional amount to raise them to the new levels. Go to www.mirebates.com and www.michrebate.com for more information.
Small Business Health Insurance Tax Credit
Starting in 2010 (this tax year), small businesses with fewer than 25 full-time employees, an average employee pay of less that $50,000 per year (excluding owners), and contribute at least 50 percent of each employee's health insurance premiums may be eligible for up to a 35 percent tax credit on their portion of health insurance premiums. To see if you may qualify, click here to access a quick online calculator. For more detailed information, please contact your CPA.
Michigan House Moves Toward Ending Construction Lien Fund
The Michigan House of Representatives recently passed House Bill 5830 which would shut down the State's construction lien fund for good. The fund which, has been funded by builders during the licensing renewal process has been running short for the last few years. As the State has struggled to downsize and balance budgets it has been unable to keep the fund solvent. The House bill now moves to the Senate for approval. It is expected that the Senate will approve the elimination of the fund. After the fund is eliminated, homeowners and contractors will be without a lien remedy when affidavits are filed.
You Must Give Out the Lead Paint Pamphlet
The delay in the enforcement of the lead, repair and painting rule does not relieve you from the requirement to distribute the lead pamphlet, "Protect Your Family from Lead in Your Home" to the housing owner and occupants of pre-1978 homes and apartments before renovation starts.
The Lead Pre-Renovation Education rule (LPRE) has been in effect since 2005 and is now being vigorously enforced. Contractors must obtain confirmation of receipt of the lead pamphlet from the owner and occupants or a certificate of mailing from the post office and retain that documentation for three years. For work in common areas of multi-family housing, constructors must distribute renovation notices to all tenants.
If you can't prove you've given out the pamphlet as required you will be in deep trouble and there is nothing the MAHB can do to help you. Hansen Windows is now facing nearly $800,000 in fines for allegedly not giving out the pamphlet at 271 residential properties where they did window work. Make sure you're not next. Give out the lead pamphlet.
To learn more about your responsibilities under LPRE go to:
http://www.michigan.gov/documents/mdch/EPA_PRE_Pamphlet_MDCH_Reprint_2005_195547_7.pdf
Local Builder Takes Action to Help Haitian Children
Michael Mahon, Adaptive Building Solutions, has taken on a challenge to rebuild orphanages in Haiti. Mike and his family have started to develop a strategy of how to rebuild and/or build new orphanages that were damaged or destroyed from the recent earthquake. However, they cannot do it alone. They are in the process of creating a 501(C)3 Foundation to help fund the effort. If you can help, please check out the website:www.haitiorphanrescue.org. We commend Mike and his family for the work they are doing.
EPA Delays Lead Paint Rules
The U.S. Environmental Protection Agency has delayed enforcement actions regarding training and firm certification requirements against remodelers under the Lead: Renovation, Repair, and Painting rule until October 1.
The EPA released the enforcement delay memo on June 18, explaining that contractors who have enrolled in Certified Renovator training with an EPA-approved training provider by September 30 will not face enforcement, as long as the training is completed by December 30.
Some Sources Where Money is Available to Homeowners
Money is available for energy efficiency so why not
help your customer find the money to do that project?
1) Energy Star Tax Credits that cover up to 30% of the cost are outlined on this energy star website. Roofing, water heaters, windows & doors and more are all included in these incentives for home owners through the end of 2010. Some special items are covered until 2016.Another great web site to check out is energytaxincentives.org.
2) Home Star Incentives are coming soon and will amount to thousands of dollars. Legislation is currently being passed at the Federal level. It is expected to be signed into law by President Obama soon. To get in on the action for the greatest savings/incentives contractors will have to be BPI certified. BRAG A2 is working with Building Science Academy to offer training at a discount to members. More to come on this.
3) Utility Company Rebates are on the rise. Detroit Edison (DTE) has a program for new home builders that helps cover the cost of an energy audit. The audit then shows the builder/homeowner specific ways to reduce energy use and helps pay for them! DTE also helps on remodel projects by paying for window replacement, insulation and more. Their 3-page application covers the details. Consumers Energy's program is not as robust, but does offer rebates on specified HVAC systems and water heaters when designated contractors are used for installation. The utility programs are expected to continue growing and expanding as the Michigan Public Service Commission continues to put pressure on the utilities to save through reducing energy use rather than building new generating capacity. Another good website to keep an eye on is MichiganSaves.org. As more programs are made avvailable this site will get the word out.
4) There are some other minor sources of money that add up when combined, like the State of Michigan Tax Credits for energy efficiency and MSHDA's Low Interest Property Improvement Loan Program. These should not be overlooked because they may help the right customer in the right situation.
Attention Remodelers: Low Interest
Loans Help Fund Property Improvements
The Michigan State Housing Development Authority (MSHDA) will help your customers finance their remodeling projects! This program is for families with household incomes up to $65,000 or $74,750, or landlords renting to low to moderate income families. Homeowners can borrow up to $50,000 at rates as low as 4%. Here are a few of the improvements that qualify: HVAC, plumbing, electrical, roof, doors, windows, siding, insulation, additions, painting, floors, decks, and more. Interested homeowners can get more information from MSHDA's participating lenders on the www.michigan.gov/mshda website.
EPA Changes Lead Renovation
Rules: Opt-Out Provision Revoked
The National Association of Home Builders reported that on April 23 the EPA announced the release of an amendment that removes the opt-out provision for non-pregnant women or residences without children under six years of age. The Lead Renovation, Repair and Paint rule went into effect on April 22nd. It requires remodelers that disturb surfaces painted prior to 1978 to attend training on proper guidelines for renovation. The amendment will be enforceable 60 days from its publication in the Federal Register. The exact date is expected to be sometime in July of 2010.
Armed Services Members Have
Another Year for Home Buyer Tax Credits
For most Americans, the home buyer tax credit expired on April 30. But Congress, recognizing that many members of the military, foreign service, and intelligence communities may have missed out on the opportunity to take advantage of the credit due to being posted overseas, has given service members more time to take advantage of it. The law provides qualified service members who served on official extended duty outside of the United States for 90 days or more at any time between Jan. 1, 2009, to April 30, 2010. another year to buy a home and claim the credit. Qualified service members who are eligible for the home buyer tax credit now have until April 30, 2011 to sign a sales contract, and until June 30, 2011 to settle and close on the home. Both the $8,000 first-time and $6,500 repeat home buyer tax credits are included in this rule.
For more information on the home buyer tax credit, go to: www.FederalHousingTaxCredit.com.
New Benefit Alert: Contract Language for Remodelers
NAHB's legal experts have developed template language that remodeling firms can use when working in homes affected by the EPA's soon-to-be-implemented Lead: Renovation, Repair and Painting rule. This is a members-only benefit, so be sure to take advantage of it. Target homes for the rule are defined as pre-1978 homes where renovation activities will disturb lead paint. A variety of sample documents, notices and contract language have been provided on our Web site. Of course, these samples are all designed for information purposes only, and do not constitute a legal opinion. Care should be taken when drafting provisions such as those below, and it is recommended that an experienced local attorney be consulted. The following templates are available:
1. Pre-Renovation Notice for Owner-Occupied Housing Constructed Before 1978
2. Additional Firms and Certified Renovators on Site
3. Lead Renovation "Opt Out" Provision for Owner Occupied Dwelling
4. Sample Move-Out Contract Clause
5. Pre-Renovation Notice for Tenant-Occupied Housing Constructed Before 1978
6. Mailing Option - Delivery of Lead Renovations Pamphlet
7. Sample Clause for Subcontracts
Michigan Consumers Warned to Beware of Scams by Unlicensed Builders
The following article is being sent to newspapers throughtout the state, warning consumers about unlicensed contractors. Feel free to print this out when you are out bidding for construction jobs.
- Maureen Sloan, CEO, BRAG Ann Arbor
You've no doubt heard the saying "If it sounds too good to be true, it probably is."
That is certainly the case when it comes to unlicensed builders who prey on Michigan consumers trying to save money on residential construction costs. What may sound like a bargain often ends up turning a dream residential construction project into a costly nightmare for unsuspecting consumers.
Builders cannot get permits for residential construction projects without a license. While that may sound like a way to cut corners and save costs, that also means no inspections will be done to ensure the quality of work and that the project is up to code.
Under Michigan law, all contractors offering to do work which totals $600 or more in labor and materials must be licensed by the Department of Energy, Labor & Economic Growth (DELEG). Consumers should also be wary of builders who offer a "special low price" or claim they have materials left over from another job they can use on their project. Legitimate builders and remodelers do not over buy materials for a job. Consumers are also warned to be cautious about any builder who ask to be paid in cash or requires total payment up front.
Hiring unlicensed builders also exposes the consumer to potential liability issues that could be very costly. A consumer who contracts with an unlicensed contractor can be held liable for on-the-job injuries sustained by the unlicensed person or their employees. This exposes the consumer to the possibility of paying medical bills and lost wages. Licensed contractors must carry workers compensation insurance to cover injuries to their employees. Unlicensed builders do not.
All licensed contractors carry a pocket license card, which consumers should ask to see. If they cannot show their license, consumers should call the Michigan Department of Labor and Economic Growth (DELEG) Builder's Unit at (517) 241-9254 or visit the DELEG website at www.michigan.gov/builders to confirm that an individual or company has a license.
House Subcommittee Approves
Home Star Energy Retrofit Measure
For more information, contact Elizabeth Odina at 1-800-368-5242 x8570.
Lead Paint Rule Website & Classes
Offered at the BRAG Ann Arbor
For more about the classes and to register, go to www.bragannarbor.com/mr_about_education.cfm
For class details please contact Christine Hill at 734-996-0100 or email her at chill@bragannarbor.com.
Visit www.nahb.org/leadpaint for the latest news on the rule, requirements of the rule, training and preparing your firm for the rule, and how to educate consumers about it. The BRAG Ann Arbor is working to schedule more dates.
Economic Links
www.capitolconnect.com/builderlink
Contact your legislators through NAHB's new online tool.
The Foundation for Economic Recovery
Stay informed of MAHB's 6 key points for recovery.
Fix Housing First
Detailing the Need for Housing Stimulus and what to do about it.
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