Saeryhs

OUT OF REACH HOW CALIFORNIA HAS PRICED OUT ENTRY-LEVEL BUYERS
The Magazine of
The National Association
of Home Builders
2016
HANLEY AWARD
WI N N E R S
d
T h e G re en bu il t
eK
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ro
P
K B Hom e
rs n o w ,
w ork s for bu yeb eyon d
in 2 02 0 , a n d
PATH
FUTURE
KB HOMES GOAL:
MAKE SUSTAINABLE MORE ATTAINABLE

October 2016
LISA OTT
Production Operator
Whirlpool plant in Clyde, Ohio
It matters who makes it.

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2016 JELD-WEN, inc.
C O L L E C T I O N
CONTENTS
O C T O B ER 20 16
FEATURES
20
p. 52
48
Mike Alvidrez
serves as CEO
of the affordable
housing firm Skid
Row Housing
Trust, which has
earned the 2016
Hanley Award
for Community
Service in
Sustainability.
2016 Hanley
Award Winners
USGBCs Rick Fedrizzi
and the Skid Row
Housing Trust are
the recipients of this
years Hanley Awards.
By Kayla Devon and
Donna Kimura
Editors Notes
UP FRONT
23
Metroscape
24
Pulse
28
Design Trends
32
56
Riverfront Solution
KB Home: The Next

Generation
CASE STUDIES
The builder and its

partners rethink
tomorrows home
to bring flexible,
sustainable design
to the masses.
35
Company Expansion
43
Standard Features
By Jennifer Goodman
NAHB NOTES
Cover: Barry Schwartz; This page: Amanda Friedman (top); Ed Chappell Inc./Courtesy Minto Communities (bottom left)
86
101
The Unintended
Consequences
of Law
Chairmans Letter
102
Home Innovation
Research Labs
A look at how
California priced itself
out of the market for
entry-level buyers.
104
Dietzs Economy
By Joe Bousquin
DATA DIVE
112
Frank Talk
FIND IT ONLINE
10,000 HOMES IN FLORIDA
BUST A MOVE
BY THE BAY
Minto Communities and

Collier Enterprises launch a
new 4,000-acre community
near Naples, Fla.
Charlie Stone, whose

dancing videos have gone
viral online, will appear in
Clayton Homes TV ads
Lennar opens three

San Francisco communities
that offer easy access to
downtown
Volume 39, number 10. Builder (ISSN 0744-1193; USPS 370-600) is published 12 times per year: monthly in Jan., Feb., March, April, May, June, July, Aug., Sept., Oct., Nov., and Dec. by Hanley Wood, One Thomas Circle, N.W.,
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B U I L D E R O N L I N E .C O M
BUILDER 9
2016
If I didnt trust it in my
own home, I wouldnt install
it in someone elses.
Ed Brown
Vice President, Construction
Arthur Rutenberg Homes
LiftMaster Garage Door Openers are the preferred choice of

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2016 LiftMaster All Rights Reserved
Wi-Fi is a registered trademark of Wi-Fi Alliance
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2016 Louisiana-Pacific Corporation. All rights reserved. All trademarks are owned by Louisiana-Pacific Corporation.
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THE MAGAZINE OF THE NATIONAL ASSOCIATION

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EDIT NOTES
O C T O B ER 20 16
NEW PATHS FOR HOUSING

All thats required to build an adaptable home of the future
is transformation in what we build and how we build it
BY J O H N M C M A N U S
s a home of 2020 capable of being a home of the longer term

future, say, 2050? And in 2050, can that same home be a home
of the future? We think so. All that requires is for a home to be able
to adapt and change to conditions and needs. In turn, all that
requires is transformation, not only in what we build, but how we build.
Whether homes can endure through the longer-term future may
have to do with what stays the same [or doesnt change] or what
changes [or doesnt stay the same]. Those who design, build, nance,
and manufacture goods for homes and communities have become
successful modeling their businesses through many housing cycles
with little change to whats worked and what doesnt work.
KB HomeNo. 6 on the most recent Builder 100 listis exploring
how and where modular, factory-based assembly ts into its highvolume, site-built operation. This is signicant. Modular platforms
and semi-successful modular home construction business models
have been around the block in the past half century or more.
Few argue that off-site, factory assembly of structures beat out sitebuilt construction on a number of levels, namely quality, precision,
and efciency. Whats tended to hold back wider adoption for modular
is shipping, as well as certain vicissitudes of each site that make
scalability a challenge. The cost of modularity, in other words, has
generally run counter to high-volume production home building.
In a few cases, however, were seeing hybrid construction technology platforms that blend factory-built and site-built processes. They
mostly center on developing cartridges off-site that can ship like
cabinet sets to jobsites and snap into place, almost like Lego pieces.
Our partnership initiative with KB Homethe Greenbuild KB
Home ProjeKtis an exploration of this hybrid process, striving to
offer a house of the future in both the midterm future of a zero net
energy state in 2020, and, if you will, a plus net value state in 2050.
KB Home and a host of manufacturer, design, and development
partners are creating a scenario not just for what changes in home
design, engineering, and performance, but how rms that produce
and deliver homes to the marketplace change their business models,
processes, and attitudes to succeed. Part of that is modularity, meaning at least part of the construction process will happen off-site.
The KB team sees modularity, componentization, and a carefully
engineered real-time and over-time interplay between a homes
envelope and systems as its strategic pathway to learning how a home
can be a home of the future in 2020, 2050, and beyond. B
John McManus
Editorial Director,
Residential
Construction
WHAT S T ENDED
TO HOL D
BACK WIDER
ADOPT ION
FOR MODUL AR
IS SHIPPING,
AS WEL L
AS CERTAIN
VICIS SIT UDES
OF E ACH SI T E
T H AT M A K E
SCAL ABIL IT Y A
CH A L L ENGE.
Habitat for Humanity is a registered trademark of Habitat for Humanity International, Inc. Ply Gem, the Ply Gem logo and Home For Good are trademarks of Ply Gem Industries, Inc.
UP FRONT
O C T O B ER 20 16
METROSCAPE /
LOT SHORTAGE CONTINUES

The rising cost and tight supply of land has been a hot topic in 2016,
but severe lot shortages in many markets is taking the main stage
PULSE 24
RIVERFRONT
BY C H A R LOT T E O M A L L E Y
SOLUTION 32
D ES I G N T R E N D S 2 8
ur monthly demand
index gauges buyer
interest and builder
demand for new lots in
36 major markets. The index in
August posted new highs for lot
demand. Twenty-two of the markets surveyed reported demand
levels for new building lots at an 8
or above on our 10-point scale, representing 61% of Metrostudys
markets. The average demand for

lots across all markets reached an
all-time high of 7.46 in August, up
7.03% from August 2015.
For nearly two years, the scarcity of lots in prime locations at a
good price has been a juggernaut
for builders attempting to build
affordable product, especially in
major markets. In a mid-year
forecast, NAHB chief economist
Robert Dietz highlighted how

the shortage of lots has impacted
not only the value of lots, but also
the footprint of home plots.
More alarming than sky-high
prices, however, are the reports of
severe lot shortages, particularly
in big markets like Dallas-Fort
Worth, Seattle, and Nashville.
Metrostudy regional director
Eugene James says even Atlanta is
PAYING MORE FOR LESS: MEDIAN LOT VALUE VS. LOT SIZE
MEDIAN SQUARE FEET
$45,000
9,400
$45K
9,200
$40K
9,000
$35K
8,800
$30K
$25K
8,600
8,589
1999
2001
2003
2005
2007
2009
MEDIAN LOT SIZE (FOR SALE: SINGLE-FAMILY DETACHED)
2011
2013
2015
MEDIAN LOT VALUE
$50K
9,600
experiencing low lot supply, despite there being more nished,

buildable lots on the ground than
anywhere else in the U.S. Its just
that the pipeline varies dramatically by submarket. Seattle has
faced low supply for months now;
according to regional director
Todd Britsch, the shortage is
forcing builders into areas they
never thought they would go.
Similarly, Nashville is now facing
severe lot shortages, as the equilibrium for the market was typically
18 to 24 months, and it has a mere
14 months' supply. Regional director Paige Shipp reports that VDL
inventory is at historic lows in
Dallas-Fort Worth, pushing prices
so high that its virtually impossible to deliver lots sub $200K.
The stress of finding actual
land to build on is further
hindered by unnecessarily stringent municipa l reg u lations
against high-density building,
and the difficulty builders are
having to secure capital to nance
land development, which is being
seen in multiple markets across
the country. B
MEDIAN LOT VALUE (SINGLE-FAMILY STARTS)
Source: NAHB
61%
S H A R E O F TOTA L M A R K E TS
R EP O R TIN G A LOT DEM A N D SCO R E
of 8 or higher on our 10-point scale
7%
THE AVER AGE DEMAND FOR NEW BUILDING

LOTS ACROSS METROSTUDY 'S
36 markets has increased 7.03% year over year
BUILDER 23
UP FRONT
O C T O B ER 20 16
PULSE /
Business
BUSINESS BRIEFS
Notable news, trends, and data from around the industry
BY B U I L D E R S TA F F
Af f o r d a b l e H o u s i n g
75% OF AMERICANS FEAR BEING HOMELESS
24 B U I L D E R
over 65% of Americans put themselves in

that category.
80% of respondents welcome more affordable housing in their communities. Nearly
40% of those polled welcome affordable
housing simply because everyone deserves
it, while 25% cite the opportunity for people
to live in the community where they work.
Nearly 20% agree that affordable housing
lets a wider range of individuals share a community, and 16% acknowledge affordable
housings ability to revitalize neighborhoods. Regarding the 20% of those polled
who were unlikely to welcome affordable
housing in their neighborhood, NHP Foundation president and CEO Dick Burns attributes that response to an outdated concept
of affordable housing.
Nearly 40% of respondents fear job loss will
lead to loss of housing. Those polled felt that
the following also could lead to a loss of housing: perceived lack of affordable options (28%),
increased rents (24%), and retirement (21%).
Americas largest home builder

by volume is getting even bigger.
Fort Worth, Texasbased D.R. Horton
acquired Wilson Parker Homes in early
September, taking over its operations
in Atlanta and Augusta, Ga.; Raleigh,
N.C.; Columbia, S.C.; and Phoenix.
The acquisition includes approximately 490 lots, 390 homes in
inventory, and 300 homes in sales
order backlog, most in and around
Atlanta. Wilson Parker currently has
more than two dozen active selling
communities in the Atlanta metro and
more on the way. Horton was already
the largest home builder in the metro
area. It now will wield a market share
greater than 20%, according to
Keefe, Bruyette & Woods analysts.
In Augusta, Wilson Parker Homes
has three active selling communities;
in both Phoenix and Columbia it has
two active communities; and in Raleigh,
it has four active communities.
In the deal, Horton also gained
control of approximately 1,850 lots
through option contracts.
For the 12 months ended June
2016, Wilson Parker Homes closed
906 homes, generating $201 million
in revenue with an average home
size of approximately 2,700 square
feet and an average sales price
of $222,000. D.R. Horton said it
expects to pay roughly $90 million
in a cash deal.
Thinkstock
As a symptom of the rising cost of housing and

fears of declining job opportunities, a majority
of Americans worry about becoming homeless,
according to a new survey.
The NHP Foundation, a nonprot provider
of service-enriched affordable housing, recently
polled 1,000 Americans to gauge their feelings
about housing and job security. The surveys
highlights include:
75% of Americans are concerned about
losing housing. When asked how concerned
Americans are that they or a friend or relative could lose housing, 30% consider
themselves very concerned, 27% are concerned, and another 19% are somewhat
concerned. Eighty-three percent of respondents are concerned about housing costs in
America overall.
Over 65% of Americans are cost-burdened.
Affordable housing is housing for which
occupants pay no more than 30% of their
income. Those who spend more than that
on housing are considered cost-burdened;
D.R. Horton
Acquires Wilson
Parker Homes
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UP FRONT
Labor Shortage
Contractors Battle
Lack of Labor
Two-thirds of construction firms report
they are having a hard time filling hourly
craft positions that represent the bulk of
the construction workforce, according
to the results of a recent industry-wide
survey by the Associated General
Contractors of America. Association
officials said many firms are changing
the way they pay and operate to cope,
but warned that labor shortages could
undermine broader economic growth
and called for new workforce measures
to improve the pipeline for recruiting and
training new craft workers.
Craft worker shortages are the most
severe in the Midwest, where 77% of
contractors are having a hard time filling
those positions. In the South, 74% of
contractors are having a hard time finding
craft workers, followed by 71% in the
West and 57% in the South.
The labor shortages come as demand
for construction continues to grow.
Construction employment expanded
in 239 out of 358 metro areas that
the association tracks between July
2015 and July 2016, according to
new analysis of federal construction
employment data also recently released
by the association. Growing demand
for construction workers helps explain
why 75% of firms report it will continue
to be hard, or get harder, to find hourly
craft workers this year.
Tight labor market conditions are
prompting nearly half of construction
firms to increase base pay rates for
craft workers because of the difficulty
in filling positions. Over 20% have
improved employee benefits for craft
workers, and 20% report they are
providing incentives and bonuses.
Also, 48% of firms report they are
doing more in-house training to cope
with workforce shortages while 47%
say they are increasing overtime
hours and 39% are increasing their
use of subcontractors. In addition,
37% report getting involved with
career- building programs in local
schools. Twenty-one percent report
they are increasing their use of laborsaving equipment, and 13% are using
off-site prefabrication.
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UP FRONT
O C T O B ER 20 16
DESIGN TRENDS /
LAUNDRY ON LOCATION
Utility rooms move near bedrooms, where theyre needed most
BY AU R O R A Z E L E D O N
Movin' On Up
24% of new, single-family homes
completed in 2015 featured the
laundry room on the second level,
up from 13% in 2009
Source: Census.gov
28 B U I L D E R
P L A N S TAT S
The layout provides exibility for a variety

of buyers, not just those with young children.
For a boomerang kid or live-in relative,
bedroom two offers extra living space with an
attached sitting room and private balcony.
Nearby, the loft can be used for homework,
video games, or simply another lounge area
away from the great room downstairs.
See a slideshow of more oor plans with
well-placed laundry rooms at go.hw.net/
BD1016-plans. B
Plan #HWB1940001
Square footage: 3,445
Bedrooms: 3
Bathrooms: 3 full + 2 half bathrooms
Dimensions: 64 2 w x 64 10 d
Foundation: Stem Wall
REPRO: $1,800
CAD: $1,800
PDF: $1,800
Photos: Giovanni Photography
heres a breakup happening in modern

homes. Laundry rooms, long located
where the garage opens into the
home, now are likely to be placed
much closer to bedroomsthe master suite in
particular. And why not? Thats where most
laundry is generated.
That leaves the high-traffic area by the
garage free for practical (and Pinterest-worthy)
organization, with closets, benches, and even
lockers appearing in many new designs. It all
makes for a more relaxing and picturesque
homecoming, with no mountains of unwashed
clothing greeting owners with a visual reminder
of what remains undone.
This plan illustrates the trend, with all
three bedrooms offering easy access to the
spacious laundry room upstairs. The master
suite sits nearest; that proximity, combined
with its capacious walk-in closet, creates a
strong appeal to clothing enthusiasts. A large
shower in the retreat provides another touch
of contemporary luxury.
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UP FRONT
O C T O B ER 20 16
RIVERFRONT SOLUTION /
RISING ABOVE A CHALLENGING SITE

Philadelphia architect wins design award for his unique
stilt-based solution to flooding
Flooding Impact
Recent flooding in Louisiana is
estimated to have damaged
roughly 40,000 homes
BY J E N N I F E R G O O D M A N
Source: NPR
32 B U I L D E R
The vacation
residence is
located directly
on the banks of
the Schuylkill
River, which led
to several design
challenges.
Ryan drew inspiration from the propertys

waterfront setting and decided to focus the
layout of the residence to correspond with the
river. The elevated house presents an expansive
view of the surrounding landscape. The rm
saw the three primary spacesliving room,
kitchen/dining area, and main bedroomas
a composition of spaces that react to a bend
in the river.
The home recently won a Merit Award in
the Built Residential category in the AIA New
Jersey Design Awards Program for the striking
design approach, says Justin Mihalik, president of AIA-NJ. They did an excellent job of
creating an amazing view of the river that
creates a tranquil setting no matter where you
are in the residence, he says. B
Michael Ryan Architects
ocated on the bank s of the Schuylkill River in Norristown, Pa.,

a glass-enclosed vacation home takes a unique approach to
staying dry.
Situated on a former childrens summer camp, the property is
in an area that is prone to ooding up to 2 feet. Faced with the challenging
site, Philadelphia architect Michael Ryan designed an elevated structure
to keep the living space above the water level via stilts.
Walls of glass in the main living space and bedrooms and an expansive
second-oor deck off of the kitchen and dining space gives the homeowners
a sense of living among the trees, given the structures height. The modern
design and use of concrete as a texture throughout the home also creates a
unique contrast to its environment.
We wanted to create a refuge for the homeowners to escape the city and
a design that would accent the beautiful nature that surrounded them,
says Ryan. The surroundings of the project also created constraints for us
to overcome, but these hurdles ultimately helped to create a house that is
both resilient and unique.
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O C T O B ER 20 16
CASE STUDIES
COMPANY EXPANSION /
GROWING NEW ROOTS

A chance meeting leads Delaware-based Schell Brothers to Richmond
BY M A RY S A L M O N S E N
S TA N DA R D F E AT U R ES 4 3
hen Shane Burnette sent Schell Brothers a request for guidance and
advice through the companys general inquiry email address, he
wasnt expecting a response, much less an eventual partnership or a
personal hand in the Delaware builders rst out-of-state expansion.
My email said, Id love to come up and learn from you guys and learn more about
your culture, recalls Burnette, who was a partner at Midlothian, Va.based Perkinson Homes at the time. Were a rapidly growing company and Id like to make sure
were hiring the right people and instilling the right values and doing things right.
He ended up with four replies within three minutes, one of which was from
Chris Schell, CEO of Schell Brothers, personally asking Burnette and his business
partner, Brian Perkinson, when they could come to Delaware.
Schell himself wasnt able to make the meeting, but Burnette was still blown
away by the reception he and Perkinson received. Just being honest, I thought we
were going to go up there, see the facility, talk about the business a little bit, and
then Brian and I would go on about our business and go home, and it would be
great, Burnette says. I didnt have these high expectations. But when we open the
door, its the head of every department sitting in the conference room. The pair
spent the entire day with the team members, learning from them and picking up
their business guidance, and came away with a new personal drone, among other
gifts. We were blown away, Burnette says.
Chris Schell
CEO,
Schell Brothers
Maximizing Happiness
Courtesy Schell Brothers
The Brady floor

plan, shown here
in the Parkside
community
in Northern
Delaware, is one
of the many that
Schell Brothers
will bring to
Richmond.
It was the rst of several visits

that Burnette and Perkinson made
to Delawarevisits that left a big
impression on Schell. The more
we got to know them, the more we
were interested in working with
them, Schell says of the duo. The
visits eventually resulted in a new
partnership and an expansion for
Schell Brothers. Perkinson chose
to remain with his own company,
while Burnette now serves as
president of Schell Brothers new
Richmond division.
The company culture was the initial draw for Burnette. You could
just tell that these people loved
where they worked, he says.
Schell Brothers routinely holds
its company meetings on the
beach; throws parties for homeowners, realtors, employees, and
trade partners; and exercises a
strong commitment to community
service. Its clients are deeply involved in the building process, and
the company provides extensive
post-settlement customer service
and regular quality inspections.
When you really are committed to your employees and maximizing the happiness of yourself
and those around you, everybody
works hard for the company
because they want to, not because
they have to, Schell says.
For Schell, the company philosophy of maximizing happiness
BUILDER 35
CASE STUDIES
I EXPECTED
SCHELL BROTHERS
TO LOSE MONEY
WHEN I STARTED
IT, BUT IT TURNS
OUT PUTTING
HAPPINESS FIRST
ACTUALLY HAS
PROVEN TO BE
LONG-TERM PROFIT
MAXIMIZING.
O C T O B ER 20 16
was an experiment, and he didnt

expect it to succeed. He had been
making good money running his
own hedge fund company when
he realized that he was unhappy
even though he was successful.
Schell started the company to
build the projects his brother was
developing, and to put the idea of
happiness over prot into practice.
I expected Schell Brothers to lose
money when I started it, but it
turns out putting happiness rst
actually has proven to be longterm prot maximizing, he says.
Weve turned a prot every year,
including every year during the
downturn. Since 2013, Schell has
closed over 1,000 homes with an
average sales price of $523,634,
Schell Brothers
Kingfisher floor
plan (shown) also
will be offered in
Richmond.
according to Metrostudy regional

director Quita Syhapanya.
The Schellter Advantage
The Richmond Market

Schell Brothers is already working
36 B U I L D E R
Courtesy Schell Brothers
Schell Brothers isnt just dedicated

to a happy corporate and consumer
experience; it wants to deliver
high-quality homes. At the core of
that desire is Schellter Advantage,
its energy-efciency program.
The program began six years
ago, when Schell hired IBACOS,
a third-party building science
company, to audit Schell Brothers
building practices. IBACOS informed the company about the
latest building science and technology, and Schell Brothers changed
its entire product to incorporate
this new knowledge.
Schellter Advantage has three
components. One, called Enerwize,
mandates a median HERS score
of 49 across all Schell homes. The
builder says this makes the average
Schell home 50% more efficient
than Energy Star certied homes,
and 100% more efcient than an
average home. Another, SanctuAIR, is a system that improves
home air quality by removing
chemical pollutants, mold, and
bacteria. The third, 4TRESS, sets
high standards for a homes durability and strength. All Schell
frame construction uses 2x6
studs rather than 2x4 studs to increase the homes overall insulation, and all walls are stick-built,
rather than panelized.
Blown-in-blanket insulation
and spray-foam draft-stopping
greatly lower the homes air leakage, and all building materials
emit few to no VOCs. Homes also
come equipped with a tankless
water heater; an insulated, dehumidied crawlspace; and a high
efciency, two-stage furnace.
on two projects in the Richmond

area: The Sanctuary community
in Midlothian and a section of the
Magnolia Green master planned
community in Moseley.
Burnette is excited to bring the
companys green-building methods to a new marketmethods that
he is confident will set Schell
Brothers apart from its competition. What we saw in the Delaware market is that we were pretty
far ahead of the competition in
terms of our techniques, he says.
But they were forced because of
market variables to start applying
some of the techniques that we use.
So I suspect that will happen here.
Burnette, a longtime Richmond
resident and executive committee
member of the Home Building
Association of Richmond, has an
extensive base of knowledge
about the Richmond market. He
knows having a local presence and
hiring local people will help Schell
Brothers better integrate into its
new environment.
So far, the companys methods
have met with success. The partnership was announced in August,
and by the end of that month
Burnette had sent three couples to
Delaware to meet with Schells design specialists. Other clients are
picking out lots.
Weve already had an amazing
customer response, and we havent
built our first house, Burnette
says. We havent even moved the
rst piece of dirt yet.
Even with these new projects in
their beginning stages, Schell has
his eye on the futureand the rest
of the East Coast. But he doesnt
want to grow too fast and risk losing the happiness thats the core of
the company.
Were very conscious of growing at a pace that is comfortable
for everybody involved in the company, Schell says. B
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CASE STUDIES
O C T O B ER 20 16
STANDARD FEATURES /
WHERE THE SUN SHINES, GREEN THINGS GROW

Stellar Homes Group embraces green technology in its homes by including
standard photovoltaic systems
BY B R I A N C R O C E
Low-ow shower heads, toilet, and sink faucets;

Zero VOC paint sealants and adhesives; and
Greenguard Gold Certied underlayment for
all oors upstairs.
Stellar Homes also installs three times the
required insulation on the exterior block walls. The
new homes will be equipped for electric cars, include
organic vegetable gardens, and will feature droughtresistant landscaping. Solars a huge component of
what we do, but its combined with the other features
that will offer the end user a tremendous savings on a
month-to-month basis, says Valle.
While these new features will come standard, the
cost will not be rolled into the price of the house.
Competition in South Florida is such that Stellar
Homes had to lower its margins in order to make the
initiative work. The average margin in the area is 26%
to 32%, according to Valle.
When we decided to move forward with this, we
knew that our margins would be lower because we
Larry Baum
C o -f o u n d e r,
S te ll a r H o m e s G r o u p
To n y Va l l e
Vice President,
S te ll a r H o m e s G r o u p
Courtesy Stellar Homes
ony Valle, vice president of Fort Lauderdale,

Fla.based Stellar Homes Group, has a nose
for incongruity. In the Sunshine State, no
one wants to take advantage of the sun, he
says, referring to fellow Florida home builders.
We feel that South Florida should be leading this
whole state, but nobody is jumping on and doing this,
he adds. We want to take the lead.
Stellar Homes now offers a new standard feature
in its homes: A photovoltaic (PV) solar panel system
with a 30-year warranty. Valle claims the company
is the only builder in the market to do so.
Valles boss, Larry Baum, co-founder and managing partner, says when he initially came up with the
idea to include PV systems, he wanted to advance the
green movement in Florida. But rst, he and his
team had to learn how to do it.
While Baum ew around the country to see how
different builders were embracing green technology,
Valle focused locally. He reached out to utility provider
Florida Power & Light in addition to Florida builders
who were offering green products on a smaller scale.
Quickly, Valle says, it became clear to him that local
builders were guilty of greenwashing.
As I would ask specic questions, they wouldnt
have any answers, Valle says. Its a great marketing term to use for an uneducated buyer, but I knew
right then and there that I never wanted to fall into
that category.
The team at Stellar Homes decided it would go
beyond just building homes with standard solar
panels. We cant dip our toe into the water; we have
to jump in, Valle says.
The result of that jump? Combined with the solar
panel system, each new home will also include:
Passive solar daylighting through positioning of
windows and doors to maximize natural light;
Hybrid water heaters (eligible for a federal tax
credit) that deliver hot water 70% more efciently;
LED lighting;
Solar panel systems now come standard on Stellar Homes projects.
BUILDER 43
Think twice.
Build it once.
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CASE STUDIES
O C T O B ER 20 16
T HE DIREC TION WE RE HE ADED WE FEEL VERY ST RONGLY ABOU T.

IT S A BE AU TIFUL T HING TO BE AHE AD OF T HE CURVE.
did not want to push this cost that were incurring onto the buyer because the markets too
erce, he adds. We had to be very savvy in
what we selected and what we could negotiate
to get good pricing.
One reason Stellar Homes can offer this
package is technological advancement. Valle
likened solar panels to LED televisionsnot
long ago, a 60-inch TV might have cost thousands of dollars, but today its attainable for a
few hundred. We discovered that the cost of
panels are returned back to the user in eight to
10 years; ve years ago it was 36 years, he adds.
Each solar panel system has a retail value of
$9,160 to $16,128 per home (depending on the
community). The energy conservation features
as a whole are expected to result in an estimated
energy cost savings of approximately $81,000

per home over 20 years, Valle says.
The margins may be lower, but the prot is
still there. Stellar Homes is currently building
new homes, priced from the low $800,000s, in
Cavalia Estates in Davie; in Velero at Sailboat
Bend in Fort Lauderdale; and in Boca Villas in
Boca Raton. Since June, the company has sold
12 of the 20 homes (as of August) it plans to
deliver this year, Valle says; in 2017, it will aim
to deliver 100 to 120 homes.
The demand is there for sure, Valle says.
The direction were headed we feel very strongly
about. Plus, as more consumers become educated on green technology, these types of practices will become standard, he adds. Its a
beautiful thing to be ahead of the curve.
Baum is hoping more builders and industry

professionals will follow his companys lead.
Here in Florida, its more of a new thing,
and we dont get an increased value if we build
green or not, and we want to change that, he
says. Because if you put more money into the
house, but at the same time youre doing good
for the environment and saving the consumer
money, there should be added value to that.
Since Florida is one of the most populous
states in the country and still growing, Baum
asserts these green practices will be key to preserving the local environment.
We have a real hope that the building community and the nance community for homeownership and rentals give more value to these
type of building practices, he says. B
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2016
HANLEY AWARD
WI N N E R S
Michael DAmbrosia Photography
Rick Fedrizzi joined the green bandwagon

when it was more murmurs than movement.
Instead, builders experimented with energyefcient projects outside of media attention
while businesses mostly saw green initiatives
as an obstacle to producing prot.
In 1992, Fedrizzi got lucky when Carriers
new CEO named him director of environmental marketing, tasking him with rebranding
the companys products as green. He accepted
under the condition the company actually
make its products more sustainable instead of
just saying they were (a strategy known as
greenwashing). From 1992 to 1995, Carrier
increased its market share and saw revenues
grow $700 million. Thats when Fedrizzi
learned he could be a successful businessman
while still caring about the environment.
With his success at Carrier, Fedrizzi
worked with David Gottfried and Michael
Italiano to found the U.S. Green Building
Council (USGBC) in 1993. Fedrizzi wanted
other businesses to see that being green and
being protable were not mutually exclusive.
You can act responsibly, use less resources, and use them more intelligently, and your
return on investment and your reward from
your shareholders, your board, your employees, and your community is tenfold, he says.
It was that realization that set Fedrizzi out
to change the world for the better. What hes
accomplished with that unrelenting mission
since then is why he is this years recipient of
The Hanley Foundations Hanley Award for
Vision and Leadership in Sustainability.
KAYLA DEVON
Rick Fedrizzi of U.S. Green Building

Council earns Hanley Award for
VISION AND LEADERSHIP IN SUSTAINABILITY
BUILDER 49
2016
HANLEY AWARD
WI N N E R S
Building a Cunity
Throughout the 90s, Fedrizzi continued to
work at Carrier, and the company allowed him
to spend roughly 25% of his time advancing
green building initiatives outside of the organization. Fedrizzi became so well known in this
sphere that then-President Bill Clinton invited
him to join 60 professionals to make the White
House more energy efcient and sustainable.
What Fedrizzi became most known for in
the green community at the time was hosting
green building events on behalf of Carrier. The
Carrier Global Engineering conferences were
centered around bringing together leaders of
sustainability in every corner of the built
environment to learn from each other.
Bob Fox, a partner at New Yorkbased
CookFox Architects, remembers attending
these events. Fox met Fedrizzi through their
work on 4 Times Square, which when it was
completed in 1999 was heralded as one of the
rst green skyscrapers of the modern era. Fox
remembers watching Fedrizzi and being enamored by his ability to facilitate collaboration
among the industrys brightest innovators.
It was Ricks remarkable ability to find
these [innovative] people, bring them together,
and to give them an opportunity to learn
through each other, Fox says.
A Living Standard
Fedrizzi brought that same communitybuilding approach to the USGBC when the
board named him CEO in 2004.
LEED launched in 2000 as one of the rst
green building certications. When Fedrizzi
took the helm, he vowed to grow its platform.
Today, 70,000 commercial projects across the
globe have been LEED certied, along with
more than 200,000 residential units.
LEED has been credited with ushering in
the green movement by getting businesses, developers, and architects to invest time, money,
and energy into better practices. As a design
tool, LEED allowed project managers to see a
list of sustainable features they could add to a
50 B U I L D E R
a
GOING GLOBAL
Clockwise from left:
Fedrizzi will donate
his $50,000 Hanley
Award grant to
The William Jefferson
Clinton Childrens
Center in Haiti.
Fedrizzi poses at a
LEED Platinum school
in Italy and speaks at
the 2013 Greenbuild
International
Conference & Expo
in Philadelphia.
project, which they may not have done without LEEDs guidance.
Recently, LEED has come under criticism for being what it is meant
to be: a design tool. Other standards and certication have transitioned
the national focus from design to performance. Fedrizzi and his team at
the USGBC then developed the LEED Dynamic Plaque, which follows
how LEED buildings are performing after completion.
This will be a great indicator if people see their performance going
off after time. It could mean their lters are dirty, their employees are
not providing the same amount of care with turning their computers off
or using plug loads properly, and so forth, says Fedrizzi.
Brendan Owens, USGBC chief of engineering, has spent the past 12
years working with Fedrizzi. In that time, Owens says his boss has been
the guiding light for the organization. Theres an enthusiasm. Theres
a commitment thats obvious. Theres a level of desire that he has that
is infectious, says Owens. Nobody wants to let him down because hes
so authentic and optimistic and hopeful.
One of Fedrizzis biggest passions has been the advent of the Center
for Green Schools in 2010. Schools were largely left out of USGBCs initial
efforts, which Fedrizzi found unacceptable. If he was helping to build a
better, more sustainable world, leaving out the buildings where children
learn about that world wasnt an option. He says he wants children to be
inspired by the beauty and comfort of the building around them.
Since its establishment, the Center for Green Schools has helped form
the Congressional Green Schools Caucus, the 50 bipartisan state Green
NO ONE CHECKED THE AIR

QUALITY, NO ONE CHECKED
THE VENTILATION, NO ONE
CHECKED ANYTHING.
MY DAD AND HIS

COLEAGUES SPENT
ALMOST 20 YEARS OF THEIR

LIVES, SIX DAYS A WEEK,
BREATHING THAT STUFF IN.
RICK FEDRIZZI, CEO,
U.S. Green Building Council
Schools caucuses, and the Mayors Alliance for Green Schools. It also
hosts Green Schools Fellows programs that embed sustainability experts
in school districts, and launched the Global Coalition for Green Schools,
which is now operating in 40 countries.
Through the center, the USGBC is working to develop the William
Jefferson Clinton Childrens Center, the worlds rst LEED-certied
orphanage in Haiti. Fedrizzi will donate the $50,000 grant from the
Hanley Award to this effort.
Stil More to Do
Fedrizzi reects on the past 40 years with a settled pride of a man whos
about to retire. Last year, he announced he would leave the USGBC. I
wanted to just join some boards and take a more relaxed approach to the
next, hopefully, 25 years of my life, he says. That didnt quite happen.
After three weeks on the couch post-surgery earlier this year, Fedrizzi
knew he was too young to accept the lifestyle of a man who was done
because hes not done. In November, he will join the International Well
Building Institute as chairman and CEO, with hopes that he can transfer
his success with LEED to the institutes WELL Building Standard.
In making the transition from green building to healthy building,
Fedrizzi has been thinking about his father, an offset printer, who died
at 54 from a brain tumor.
The smell of the inks and dyes and

whatever is used in the printing products
was the most intense toxic smell you can
imagine, he recalls of visiting his dad at
work. No one checked the air quality, no
one checked the ventilation, no one checked
anything. My dad and his colleagues spent
almost 20 years of their lives, six days a
week, breathing that stuff in.
As he walks through schools and ofces
today, thats what Fedrizzi thinks about
the chemical smells from cleaners, the lack
of ventilation, the inoperable windows.
However, its largely because of him and
the USGBC that those buildings have access to products that make them more efcient, healthy environments, says Center
for Green Schools director Rachel Gutter.
Fedrizzi recognizes progress is slow and
that it may be 20 to 50 years before some of
these problems are resolved, but his efforts
so far in solving yesterdays problems have
made it possible for us to instead focus on
solving the problems of tomorrow. B
B U ILDER 51
2016
HANLEY AWARD
WI N N E R S
g
n
i
l
a
e
H
es
c
a
Pl
HELPING HAND
Mike Alvidrez, CEO

of Skid Row Housing
Trust, is getting
homeless individuals
off the streets and
into innovative,
supportive housing
in Los Angeles.
52 B U I L D E R
DONNA KIMURA
Skid Row Housing Trust earns

Hanley Award for
COMMUNITY SERVICE IN SUSTAINABILITY
When Kenneth Davis moved into the Abbey

Apartments in Los Angeles, it was the rst
time he had a place of his own, in his name.
Ill tell you just the sound of the doorbell
was music to my ears, says Davis, 52, who
had previously lived with his family, in a
Texas prison, and on the streets. I was able to
appreciate the doorbell. I was able to appreciate the power of a locked door.
Homeless for more than two years, Davis
often spent his days on Crenshaw Boulevard
and West Florence Avenue before he sought
help. The foundation of that help would come
from Skid Row Housing Trust, which gave him
a place to live at the Abbey Apartments.
When I got my own place, it gave me serenity, Davis says. It gave me peace. It gave
me clarity. Thats when I decided now I need
to see what to do next.
Davis worked to remain clean and sober.
He received help for untreated physical and
mental health issues. He went back to school.
He lived at the Abbey from 2012 to 2015, and
now works for the Skid Row Housing Trust as
a resident services coordinator after serving
as a peer advocate. This job has taken me
from the pits to the palace, he says. The rst
thing I needed was a place called home.
The trust changes lives. Along the way, its
also changing the way people think about
affordable housing.
Hsing Fist Aoach

The nonprot organization operates 25 buildings with almost 1,800 permanent and supportive homes. Many of these residents have
been chronically homeless, and many also
have a mental illness, disability, or addictions.
Im proudest of the fact that the model that
we have been articulating for 15 yearsthat
providing chronically homeless individuals
with supportive housing in beautiful buildingsis the most successful approach to ending homelessness and has now been widely
adopted, says Mike Alvidrez, CEO of Skid
Row Housing Trust. Its something that larger
systems and the public have nally recognized
as an efcacious solution, that it works.
For its innovative work, the affordable
housing firm has earned the 2016 Hanley
Award for Community Service in Sustainability from The Hanley Foundation and Hanley
Wood, publisher of BUILDER. The award,
with its $25,000 grant, recognizes communitybased and nonprot organizations working
to advance sustainability and environmental
awareness in the host cities of the Greenbuild
International Conference and Expo, which
will be held in October in Los Angeles.
The trust is a leader in Housing First, an
approach that prioritizes providing permanent
housing to people experiencing homelessness
AMANDA FRIEDMAN
BUILDER 53
2016
HANLEY AWARD
WI N N E R S
as quickly as possible. The idea is that once people have stable housing they are then in a better
position to improve their lives. Its a 180-degree
reversal from the old practice of providing housing only after people are clean and sober.
In recent years, the trust has become wellknown for its bold buildings. An example is the
Star Apartments designed by acclaimed architect Michael Maltzan. The development reuses
an existing one-story commercial building in
downtown LA, eliminating the need to send
materials to the landll. The team staggered
prefabricated modules onto the existing building to create community space and 102 units
for formerly homeless individuals.
The $40 million LEED Platinum project
features energy-efcient appliances and airltration systems as well as low-VOC nishes.
The building includes an on-site medical clinic,
a 15,000-square-foot health and wellness
center, and the new headquarters of the Los
Angeles County Department of Health
Services Housing for Health Division.
Time magazine named Star Apartments
among the 25 best inventions of 2015, alongside other big ideas such as the hoverboard and
a gluten sensor.
Design Maers
It takes grit to work in the Skid Row neighborhood, the epicenter of homelessness in
America with an estimated 3,000 people living
on its streets or in shelters. Alvidrez, a native
Angeleno with a masters degree from UCLAs
School of Architecture and Urban Planning,
and his team of 200, which includes a property
management company, have plenty of that.
We come to work every day, and we see folks
living out in the open or in tents, says Alvidrez.
Its certainly a strong motivator for us to take on
this challenge.
Established in 1989, the trust originally
focused on renovating and preserving old
single-room occupancy buildings that were at
risk of being demolished or converted to other
uses. After saving a number of these buildings, the organization decided to focus on
54 B U I L D E R
developing new projects.

The new-construction typology gave us an
opportunity to think more about how we can
organize space in our buildings and help remediate some of the conditions that people experience while theyre homeless, says Alvidrez.
Thats led to projects like Star Apartments
and The Six, a new $16.7 million, 52-unit permanent supportive housing development, with
35% of its units set aside for homeless veterans.
Both communities were nanced with the help
of low-income housing tax credits, the nations
main program to develop affordable housing.
The developments communicate that design
is important even when building for formerly
homeless people. Just because youre poor
doesnt mean you shouldnt have good design in
terms of where you live, says Alvidrez.
These projects also help buck negative stereotypes about affordable housing, showing
the larger community that these developments
can be attractive assets to the neighborhood.
Designed by the LA architectural firm
Brooks + Scarpa, The Six is another LEED Platinum development topped off by a rooftop solar
hot water system. Its visually striking, with a
large opening in front and a sweeping secondoor courtyard that provides residents with a
peaceful sanctuary while still being connected
to the surrounding community. Its the buildings most critical feature.
a
NEW LE ASE ON LIFE
Housing has opened
a new life for me,
says Kenneth
Davis, who now
works for Skid Row
Housing Trust after
living at its Abbey
Apartments from
2012 to 2015.
Everybody has to walk through that

space, says Angela Brooks, managing principal at Brooks + Scarpa. Youre not forcing
people to be social, but youre allowing them
to have that opportunity if it presents itself.
When planning a new project, the trust has
its designers meet with a small group of residents from its other buildings. These formerly
homeless individuals provide valuable insight
into the needs of future residents. In the case
of The Six, the group collaborated with the
architects to ne-tune the original courtyard
design so it would be more of a quiet refuge.
Skid Row Housing Trust sees a good
design as part of the healing process for
people who live in the project, Brooks says.
And, this is carried through by them in every
project they undertake.
Located in LAs MacArthur Park neighborhood, The Six is also signicant because it is
the trusts rst development outside of downtown. What weve learned in Skid Row is
replicable, Alvidrez says. We certainly have
a long way to go as a region.
There are nearly 47,000 homeless people in
LA County. That means there are more people
like Davis out there and more affordable housing that needs to be built. Skid Row Housing
Trust will be key in bringing them together.
Housing has opened a new life for me,
Davis says. Once I got housed, I was able to
step over a spot that I was never able to step
over before, and now Im still going. B
JUST BECAUSE YOURE POOR

DOESNT MEAN YOU SHOULDNT
HAVE G D DESIGN
IN TERMS OF WHERE YOU LIVE.
MIKE ALVIDREZ, CEO, Skid Row Housing Trust
56 B U I L D E R
The builder and its

partners predict
future trends to
rethink tomorrows
home and bring flexible,
sustainable design
to the masses
:
e
m
o
KB H
t
x
e
N
e
h
T
n
o
i
t
a
r
e
G en
By Jennifer Goodman
Photography by Barry Schwartz
B U ILDER 57
g re en bu ild j ek t
k b hom e pro
Its no secret that innovation happens at a snails pace

in the home building business. Builders and manufacturers independently explore new ideas but keep
progress under wraps in order to maintain a competitive
edge. This means that game-changing concepts, new
products, and innovative technologies are rarely shared
across the industry.
The Greenbuild KB Home ProjeKt team broke down
these barriers and tapped into the combined brainpower
of one of the countrys largest builders, world-class
manufacturers, and leading-edge experts in an unprecedented spirit of collaboration, even among competing
brands. The result is nothing short of groundbreaking:
The demonstration home, on display Oct. 5-7 at the 2016
Greenbuild International Conference and Expo in Los
Angeles, will take attendees on a time-travel look at best
practices in home building now, in 2020, and in 2050.
ProjeKts multifaceted team is made up of forwardlooking organizations from business, design, and academia, including Whirlpool, Owens Corning, Kohler,
Sherwin-Williams, Savant, KTGY Architecture + Planning,
58 B U I L D E R
Virginia Tech University, and a range of other partners

and sponsors. The groups broad expertise in a variety of
key disciplines meant it was able to generate and develop
innovative but practical ideas about the future of home
building, says Dan Bridleman, senior vice president of
sustainability for Los Angelesbased KB Home, the No.
6 builder on this years BUILDER 100.
We felt it would be important to demonstrate not
what you could do today, not what you could in 2020, but
to bring a collaborative group of our partners together
with some big thinkers and demonstrate what could be,
says Bridleman. Utilizing collaboration as a new mode
of development, this group of thought leaders has been
able to leverage their collective vision and expertise into
something greater than could have been conceived of by
any individual organization.
UP CL OSE
The KB Home ProjeKt
house will be on
display Oct. 5-7 at
the 2016 Greenbuild
Conference in
Los Angeles. The
interactive exhibit
will feature vignettes
of assemblies and
systems, home
tours, educational
information, and a
digital wall display.
THE PROCESS
In a series of summit meetings earlier this year, project
participants were challenged to predict future trends and
Rendering by KTGY Architecture + Planning
invent solutions to problems that dont exist yet. They

vetted every aspect of the 2,100-square-foot home for its
importance (or lack of importance) in coming years. For
instance, the garageless oor plan is a nod to the growth
of the sharing economy. In a community of the future,
not every homeowner will have a car, experts say; many
will share one with neighbors, use a ride-sharing service,
or rely on driverless car systems.
The homes modern design is geared to attract young
home buyers who have grown up in the digital age. The
architecture of the home is quite a bit more contemporary than a typical production house, but the next generation of rst-time buyers is into contemporary design
because its what theyve had in their urban apartments
and on their Apple phone and iPadsa sleek, contemporary look, says KTGY principal Manny Gonzalez, the
projects lead architect.
KTGYs open, one-level layout takes the ex space of
today to a Jestons-like level with a main room that can
be recongured within minutes for different purposes.
A cartridge wall in the secondary bedroom contains a
fold-up bed and fold-down desk, allowing it to function

as an ofce or bedroom. The wall can also move out of
the way to expand the adjoining great room, and a video
screen rotates to allow either room to use it. The cartridge concept, developed by Virginia Techs Center for
Design Research, is a new way of building architecture
that utilizes robotics to create house parts, much like
an automotive assembly line, says Joseph Wheeler, codirector of the center. (See Plug and Play for more about
the cartridges.)
HIGH PERFORMANCE
One of the main goals of the project is to demonstrate a
future homes potential for higher levels of performance
without increasing costs. We are going beyond code
compliance and even beyond what we would call Sustainability 2.0, says Jacob Atalla, KB Home vice president of sustainability. In thinking about the future,
were talking about restorative designdesign that gives
back to the environment.
BUILDER 59
k b hom e pro
indoor garden
e x t r a space
A wet bar and
closet will enhance
the homes
storage options.
pl ugged in
A living wall
will put fresh
herbs at arms
reach in the
kitchen.
The main kitchen

wall is one
of seven prefab
cartridges in
the house.
entertainment
op tions
A movable
cartridge wall
can open to expand
the great room for
social events.
Meet
the Team
PARTNERS
TITLE SPONSORS
BUILDER
Owens Corning
Whirlpool
Cradle to Cradle Products

Innovation Institute
KB Home
KTGY Architecture + Planning
Virginia Tech
SPONSORS
American Gas Association
Avid Ratings
Carrier
Cosentino
DuPont Tyvek
Weatherization Systems
Emser Tile
Generation Brands
James Hardie
Kohler
Kwikset
LP Building Products
Lutron Electronics
Panasonic
Polyguard TERM Barrier
Division
Rain Bird
Rinnai America Corp.
Savant
Shaw
Sherwin-Williams Co.
Sierra Pacific Windows
IN THINKING
ABOUT THE FUTURE,
WERE TALKING
ABOUT RESTORATIVE
DESIGNDESIGN
THAT GIVES BACK TO
THE ENVIRONMENT.
JACOB ATALLA, KB HOME
multi-func tion
When not set up
as an extension
of the great room,
the space can
be divided with a
modular wall to
become an office
or bedroom.
SmithGroup JJR
SoCalGas
Softwood Lumber Board
Southern California Edison
Square D by Schneider
Electric
SunPower
Therma-Tru
Uponor
CONTRIBUTORS
BarkHouse
ClosetMaid
Energy Inspectors
Gothic Landscape
Leonards Services
Kings Stonework
Napoleon
Pacific Dimensions
Resource Furniture
RSI Professional Cabinet
Solutions
Urban Farmer
Weiland Design Group
Wolff Horticulture
To that end, the home boasts massive amounts of

insulation and can accept plentiful solar panels to meet
Californias Title 24, which requires that all homes
produce as much energy as they use by 2020. A highperformance wall assembly will help mitigate heating and
cooling loads and keep occupants comfortable no matter
the region or climate. Thermos-like vacuum insulation
panels from Owens Corning work with blown-in insulation,
Owens Cornings Foamular XPS rigid foam insulation, LP
sheathing, Tyvek housewrap, and James Hardie siding
for an R value of 40. The LP OSB sheathing is treated with
the companys re-rated Flame Block material, unheard
of in todays single-family residential construction. In
addition, a Tesla Powerwall battery will store extra solar
energy, providing peace of mind in the case of a weather
event or other disaster.
When a structure like the KB Home ProjeKt strives
for net zero energy, its not just the insulation or the
housewrap or the mechanical systems alone, its how
they all work together to create a home that delivers the
results that have the least impact on the environment
and the pocketbook, explains Gonzalez.
In another example of collaborative
ingenuity, the wall assembly also
includes Polyguards non-chemical
TERM system that provides protection
BUILDING SHELL
from moisture, water, and energy leaks
The home was
built in a Cypress,
as well as pests such as termites.
Calif., factory this
Together, this team pushed the
summer before
envelope of building science to literally
being disassembled
and shipped to
go where no one has gone before in the
the Los Angeles
application of integrated building
Convention Center
for Greenbuild.
science, says David Rosebery, Owens
BUILDER 61
k b hom e pro
Corning business marketing leader for residential

insulation. What weve been able to prove is that building sustainable, code-compliant, comfort-driven homes
can be achievable and affordable for builders while
delivering a new standard of comfort and performance
for the homeowner.
GREEN FEATURES
16
FLOOR PL AN
The ProjeKt home
contains seven
prefab cartridges
(highlighted above
in gray) that hold the
guts of the house
including kitchen and
bathroom plumbing,
mechanical systems,
and an indoor living
garden wall.
WELCOME HOME
The light and bright
kitchen is the
centerpiece of the
main living space.
62 B U I L D E R
Rendering by KTGY Architecture + Planning
Without a doubt, the home of the future will be technology

based, and the ProjeKt house demonstrates how manufacturer collaboration will drive it forward. A Savant Pro
smart home system combines climate, lighting, entertainment, and security functions in a single interface
with a voice-activated remote control. In addition,
Schneider Electric will demonstrate a next-generation
energy management system that can pinpoint energy use
down to the individual circuit breaker and alert the
homeowner when irregular usage occurs. Lutrons wireless system allows homeowners to program lights and
shades to turn on or off at a set time every day, and it will
automatically adjust as the seasons change.
Water conservation is a crucial component of the
home, met by state-of-the-art products such as Kohler
low-ow faucets and showerheads and dual-ush toilets,
Rain Bird weather-based irrigation, and a device that

shows residents how much water theyre using every
day. A KitchenAid dishwasher recycles water from the
nal rinse cycle and saves it for the next loads prerinse, using 33% less water than a traditional unit. If
built on site, the home also would be equipped with graywater recycling and rainwater management features,
Atalla adds.
A focus on homeowner health is met by Cradle to
Cradlecertified products and materials, air-quality
sensors, Shaw Floors waterproof carpeting, lighting that
enhances residents Circadian rhythms, and zero-VOC
Sherwin-Williams paint with formaldehyde-reducing
properties. Sherwin-Williams Paint Shield, a coating
that the manufacturer says kills 99.9% of common
bacteria within two hours on a painted surface, will also
be on display.
A Carrier air purier will kill airborne pathogens
such as bacteria, viruses, and mold, and the companys
energy-recovery ventilator will maintain a blend of fresh
outdoor air and conditioned indoor air.
The homes interplay of products and materials will
help it weather whatever Mother Nature might have in
store for years to come, adds Atalla. Were layering two
or more systems in the same assembly to create something thats more resilient and durable, which may be
needed as the climate changes, he says.
While some might question the use of redundant
materials and overlapping systems, the project team
wanted to provide abundant efciency, durability, and
comfort for future industry pros to build on. What were
doing today might be adding layers of cost that someone
could think is unnecessary, but in the future when
industry experts collaborate together across companies,
theyll be able to nd better economies of scale, Atalla
explains. Our team for this house doesnt have all the
answers, in fact, this home is just the beginning of thinking about new ways of building. B
PLUG AND PLAY

The Greenbuild KB Home ProjeKt
takes an in-depth look at the way
houses will be constructed in the
future. Borrowing an idea from
Virginia Tech Universitys groundbreaking FutureHaus research,
the project will demonstrate the
schools unique panelized approach
to residential construction.
The house will be outfitted with
seven modular cartridges in
spaces including the kitchen, bath,
and a mechanical wall in the utility
room. The roughly 30-inch-deep
cartridges will be wired and plumbed
in the factory, delivered to the site,
plugged into the foundation, and
then joined together by wall panels
and covered with roof trusses.
Its an idea that other manufacturing
industries have employed for
decades, says project architect
Manny Gonzalez of KTGY Architecture + Planning.
You take the elements of a home
that contain the fixtures and appliances, and you build them in modules
with the idea that eventually we
can build homes in manufacturing
plants, just like cars, he says.
This component approach will
make the home more affordable and
more adaptable than a site-built
dwelling, says Joseph Wheeler,
co-director of Virginia Techs Center
for Design Research. Creating parts
in a climate-controlled factory
setting helps leverage economies of
scale and minimize waste, he says,

while enhancing quality, precision,
and efficiency.
No longer do you have to have
technicians that have to go out into
the field and install everything from
plumbing to electrical, Wheeler adds.
The approach also will allow the
home to evolve with the changing
needs of its residents, says Dan
Bridleman, KB Homes senior vice
president of sustainability. New
technologies and products can
easily be integrated into the home
by modifying or replacing cartridges,
which also extends the potential
life of the home, he says.
The use of prefab elements did not
limit the design of the home, says
Gonzalez. If you do it right, a home
built with cartridges can actually
look better than a traditionally built
home because you get away a little
bit from on-site construction
defectstheres a little more quality
control, he says.
An added bonus: The cartridges
will allow the home to seamlessly
upgrade to evolving technologies
without becoming obsolete or
inefficient, says Bridleman.
KB Home executives are very
interested in the cartridge concept
and how it could be integrated
into the companys construction
process, says vice president Jacob
Atalla, who believes it will be in
mainstream use by 2050 or earlier.
T HIS TEAM PUSHED THE ENVELOPE OF

BUILDING SCIENCE TO LITERALLY GO WHERE NO
ONE HAS GONE BEFORE IN THE APPLICATION
OF INTEGRATED BUILDING SCIENCE.
DAVID ROSEBERY, OWENS CORNING
BUILDER 63
k b hom e pro
weight, affordable, and easy to install, which

reduces labor and material costs for builders,
according to the manufacturer. lpcorp.com
Panasonic
Emser Tile
With more than 4,500 interior and exterior
tile selections of varying patterns, textures,
and finishes, Esmer tiles [ 1 ] can be utilized to
create a full feature tile wallan emerging
trend in home designthat easily transitions
from horizontal to vertical surfaces. emser.com
greenbuild
kb home projekt
products
A sample of the
projects high-performance
products and materials
by lauren shanesy
Owens Corning
The ProPink High Performance Attic System
and the High-Performance Wall System,
featuring the companys blown-in wall
system and extruded polystyrene insulation,
deliver air sealing, moisture management,
and acoustic solutions that improve the overall energy efficiency, durability, sustainability
and comfort performance of the home.
owenscorning.com
Whirlpool
The KitchenAid Architect Series II
dishwasher includes the AquaSense
recycling system, which uses 33% less
water than KitchenAid dishwashers without
AquaSense. AquaSense technology recycles
water from the dishwashers final rinse by
reusing it for the next loads pre-rinse cycle.
Fresh water is used to finish the cleaning
cycle. whirlpool.com
Home security and air control are combined

in the Home Health Link system for an all-inone package that keeps homeowners both
safe and healthy. The customizable system
features built-in intelligence and automatic
adaptability to manage moisture and ensure
indoor air quality through a system of sensors
that communicates with a Wi-Fi hub to detect
and control moisture, temperature, and
pollutants. business.panasonic.com
Cosentino
Dekton [ 2 ] surfaces are universalthey can
be applied as kitchen and bathroom countertops, or used for indoor and outdoor wall cladding, stairs, flooring, custom furniture, or even
swimming pools. The material is resistant to
scratches and stains, and has high heat, thaw,
and UV resistance, which allows it to withstand the elements in any climate. dekton.com
Carrier
The Carrier Cr thermostat [ 3 ] blends
fresh outdoor air with conditioned indoor air
to create an affordable, energy-saving home
comfort system. Inverter technology powers
a heating and cooling system that, when
coupled with the companys air purifier,
captures and kills airborne pathogens such
as bacteria, viruses, and mold. The energyrecovering ventilator removes stale air from
the home while stopping valuable air from
escaping. carrier.com
LP Building Products
LP FlameBlock Fire-Rated OSB Sheathing
is constructed with a non-combustible,
fiberglass-reinforced pyrotite treatment to
protect walls and roof decking from fires. It
has a 15-minute thermal barrier protection
and a 30-minute flame spread rating, is light-
64 B U I L D E R
CUSTOM BUILDING PRODUCTS. ONLY AT THE HOME DEPOT.

REDGARD UNCOUPLING
MAT FOR TILE AND STONE
PREVENTS CRACKS
2016 Home Depot Product Authority, LLC. All rights reserved.
NATURAL STONE & LARGE

TILE PREMIUM MORTAR
PREVENTS LIPPAGE
FUSION PRO SINGLE

COMPONENT GROUT
PREVENTS STAINS
k b hom e pro
DuPont Building Science
sanitized cleaning. An eco-friendly
Lutron
Tyvek ThermaWrap takes air and
dual flush function uses 0.8 to
The Casta Wireless system [ 6 ]
water protection to a new level
1.28 gallons per flush, which can
from Lutron gives homeowners
with a low-emissivity surface that
save homeowners as much as
the ability to control lights, shades,
adds an effective R-value to a wall
6,000 gallons of water annually
and temperature inside or outside
system when used in conjunction
compared with a standard
the home with either a remote
with an airspace. It provides a
1.6-gallon toilet. kohler.com
control or via the Lutron app. The
breathable weather barrier and

prevents the accumulation of
water in the walls, thus reducing
the chances of water damage and
mold. dupont.com
Smart Bridge Pro connects in-wall
Kwikset
Homeowners easily can check
the security of their household
regardless of their location with
dimmers, lamp dimmers, Sivoia
Rain Bird
QS Triathlon remote-controlled
By eliminating unnecessary
irrigation, Rain Birds WR2
Wireless Rain/Freeze Sensor
can lower water bills and save up
to 35% of water. The sensors
quick shut off feature will halt any
irrigation that is taking place as
soon as the sensor detects rainfall, and the WR2 even allows
for customized rain fall and temperature set points. rainbird.com
shades, and third-party devices

to the app, providing convenient
home control. lutron.com
the 916 SmartCode Deadbolt [5 ]
Kohler
with HomeConnect. The smart
The Veil Intelligent toilet [4 ]
deadbolt is also equipped with
Polyguard
features a self-cleansing stainless
Kwiksets SmartKey technology,
TERM Sustainable Pest Barriers
steel bidet wand that uses a
which is both pick and bump
protect homes from moisture,
UV light and electrolyzed water
resistant for added security.
water, energy leaks, and pests.
system to ensure a more
kwikset.com
The barriers, installed below floor-
66 B U I L D E R
ing, do what previous barriers did

not: they create a sealant that
stretches to block pests from the
gaps that naturally emerge in
homes that cannot be chewed
through by termites and other
insects. polyguardproducts.com
Classic-Craft
Entry Doors
Fiber-Classic
Entry Doors
NEW Classic-Craft
Wider, Taller Door Options
NEW Riserva Decorative Glass
TM
Two are better than one.
Tru
False
Get it right. Make it Therma-Tru.

Both Classic-Craft and Fiber-Classic entry doors are rated a Consumers Digest Best Buy.
Put the power of the seal behind your sales. Find builder tools at
www.thermatru.com/builder.
1-800-4BUILDR (428-4537)
2016 Therma-Tru Corp. All rights reserved. The Best Buy Seal and other licensed materials are registered certification marks and
trademarks of Consumers Digest Communications, LLC, used under license. For award information, visit ConsumersDigest.com.
2016
k b hom e pro
James Hardie
7
Artisan V-Rustic sidings [ 7 ] extra-thick

fiber cement boards can stand up to the
elements by resisting shrinking, swelling,
and cracking even after years of exposure to
the hot sun or wet conditions. The products
lock joint system uses blind nailing, which
creates a more seamless look on the homes
exterior. jameshardie.com
The Wiser Energy solution is an energy

monitoring system that brings detailed,
easy-to-understand energy generation and
consumption data to homeowners through a
user-friendly interface. The system offers
commercial grade arc fault and ground fault
dual function circuit surge protection for the
appliances, HVAC systems, and circuits
within a home. schneider-electric.us
Sherwin-Williams
Paint Shield and Harmony paint products
contribute to a homes overall healthiness.
Paint Shield kills more than 99.9% of viruses
and bacteria within two hours of exposure on
a painted surface, claims the manufacturer.
Harmony contains Formaldehyde Reducing
Technology, which helps promote better
indoor air quality by reducing airborne concentrations of formaldehyde and other aldehydes
from sources like insulation, carpet, and other
building materials. sw-builders.com
Generation Brands
The Merge Recessed Linear System [ 9 ] from
Element by Tech Lighting illuminates the
homes entryway through a continuous line of
glare-free indirect LED lights, brightening the
room without drawing attention to the fixture
itself. More than 80 Tech Lighting pendants
and over 25 Tech Lighting spot heads can be
added directly at any point along its concealed
low-voltage channel, and can be changed
or redirected to create accent lighting.
element-lighting.com
Savant
The Savant Pro Remote [ 8 ] combines the
convenience of a universal remote with the
power of home automation, simplifying the
experience by offering control of entertainment, climate, and lighting. The Savant Pro
works with a variety of devices and offers an
all-in-one entertainment and automation
experience. savant.com
Square D by
Schneider Electric
68 B U I L D E R
Working van. Priced for the working man.

The Sprinter WORKER can hold over 3,500 lbs. of payload and has 319 cu. ft. of cargo volume. With service intervals
of up to 20,000 miles,1 youre looking at the hardest-working van in its class. Now at an equally hardworking price.
Visit MBVans.com
THE 2016
SPRINTER
WORKER
STARTING AT
32,495*
SPRINTER WORKER CARGO VAN

144", LOW ROOF, 4-CYLINDER
2016 Mercedes-Benz USA, LLC. Sprinter is the 2016 ALG Residual Value Award winner in the Fullsize Commercial Van segment. ALG is the industry benchmark for residual values and depreciation data. www.alg.com. *Excludes all options,
taxes, title, registration, transportation charge, and dealer prep fee. 1 Driver is responsible for monitoring uid levels and tire pressure between service visits. See Maintenance Booklet for details.
k b hom e pro
service and organization sponsors

SmithGroupJJR
The award-winning firm creates sustainable
buildings and communities. smithgroupjjr.com
SoCal Edison is committed to keeping electricity
reliable, affordable, and clean. sce.com
The organization encourages builders to choose
wood and benefit from its light carbon footprint.
woodnaturally.com
Avid Ratings
Beyond quantifying the customer experience, the
company introduces the GoTour interactive home
tour platform. avidratings.com
American Gas Association
AGA represents over 200 local energy companies
that deliver clean natural gas in the U.S. aga.org
SoCal Gas
SoCalGas is committed to helping its builder
customers reach the ZNE standard efficiently
and cost-effectively. socalgas.com
10
Shaw Floors
Floorte [10 ] uses high-definition
printing to create an authentic
hardwood or tile look. Its Fold N
Go locking system is precisionengineered for easy installation.
Floorte floors are strong,
durable, and flexible, and conceal
imperfections of the floor beneath.
Floortes waterproof qualities
bypass technology that includes

an integrated pump, internal
bypass line and thermal bypass
valve, providing endless hot water
when its needed. The model has
the highest hot water capacity
per BTU, providing the ability to
support multiple, simultaneous
hot water demands and more
venting solutions on the same
unit. rinnai.us
make it a good candidate for

high-moisture areas like
basements, bathrooms, and
mudrooms. shawfloors.com
Sierra Pacifics Aspen Casement

Windows hide the locking hardware so that no latches detract
from the aesthetic of the wood.
The windows can be outfitted
with energy-efficient, spectrally
selective low-E insulated glass
Rinnai
The Ultra Series RUR98 tankless water heater features built
in recirculation with thermal
70 B U I L D E R
and tinted, specialty glazings.

sierrapacificwindows.com
Therma-Tru
Therma-Trus line of three
contemporary grained and
smooth door styles can be
combined with a variety of glass
designs to make a bold statement.
The doors can be fitted with
Therma-Trus privacy or textured
glass for extra embellishments.
thermatru.com/builder
Uponor
The Phyn is an intelligent water
system that collects data to
detect leaks and protect against
leak damage, enable water
conservation, and enhance

household water usage with
automated and anticipatory
controls. phyn.com
SunPower
The SunPower Equinox solar
system doesnt compromise curb
appealthe system has 70%
fewer visible parts than conventional panels while still generating
70% more lifetime energy than
conventional panels with 9% more
energy per watt. Homeowners
can also access the companys
EnergyLink software, which
provides real-time access to
energy-usage data, bill savings,
and environmental impact.
us.sunpower.com
SAVE WITH BULK

PRICING TO GET
YOUR JOB DONE.
SAVE ON INSULATION,
SHINGLES, DRYWALL,
AND MORE
JOB LOT
QUANTITIES
AVAILABLE
NEXT-DAY
DELIVERY
AVAILABLE
2016 Home Depot Product Authority, LLC. All rights reserved.
HousingEconomics.com
Housing Data for Business Planning
HousingEconomics.com is the premiere
source for housing data. From housing
statistics to state, metro and national
forecasts to special studies such as homes
millenials buy, youll get information and
insights to inform your business plans.
To learn more and to subscribe, visit
HousingEconomics.com.
Greenbuild KB Home ProjeKt

Project partners KB Home, KTGY Architecture + Planning and
BUILDER magazine debut the Greenbuild KB Home ProjeKt
this groundbreaking modular home offers a look into the future
of practical high-performance design. See the Greenbuild KB
Home ProjeKt at the 2016 Greenbuild International Conference
& Expo in Los Angeles, CA October 56, 2016.
The ProjeKt is based on research and experience showing that
innovation created in a collaborative environment is much more
likely to produce new products with strong consumer appeal.
The Greenbuild KB Home ProjeKt will change the game, its aim
PROJECT PARTNERS
to broaden the conversation about making high-performance,

sustainable, resiliently-built and efciently operating homes
attainable to those who are pursuing the American dream of
homeownership.
See the home for yourselfstop by booth #2843 at the Greenbuild
International Conference & Expo or take the virtual tour following
the show.
builderonline.com/kbhomeprojekt
#gbkbhomeprojekt
TITLE SPONSORS
FOUNDING SPONSORS
ALLIANCE SPONSORS
AGA
Avid Ratings / GoTour
Carrier
DuPont Tyvek
Weatherization Systems
Emser Tile
Generation Brands
James Hardie
KOHLER
Kwikset
Lutron Electronics
Polyguard TERM
Barrier Division
Rain Bird
Rinnai America
Corporation
RSI Professional Cabinet

Solutions
Savant
Shaw
Sherwin-Williams
Company
Sierra Pacic Windows

SmithGroup JJR
Southern California
Edison
SoCalGas

Square D by
Schneider Electric
SunPower
Therma-Tru
Uponor
Project contributors include: BarkHouse, ClosetMaid, Energy Inspectors, Gothic Landscape Inc., Kings Stonework, Leonards Services, Napoleon, Pacic Dimensions, Inc.,
Resource Furniture, Urban Farmer, Weiland Design Group, Inc., Wolff Horticulture
ADVERTISEMENT
2016
TITLE SPONSOR
Owens Corning Building Science Delivers

Breakthrough Build Practices
As part of the building science core team for the Greenbuild

KB Home ProjeKt, Owens Corning is contributing scalable
sustainable innovation and technical expertise to the
concept home display.
Throughout the collaborative process, Owens Corning converted
building science analytics and insights into breakthrough build
practices showcasing high performance solutions for the home
of today, tomorrow and the future. The Owens Corning solutions
featured in the display also highlight how to achieve comfort,
quality and performance required to meet the needs of next
generation homebuyers.
During the build cycle, the Owens Corning team incorporated
and balanced multiple analytical modeling tools to optimize home
performance across EnergyPlus, ASHRAE Comfort, whole building
moisture, acoustics and more. The driving force behind Owens
Cornings sophisticated and thorough modeling analysis is a focus
on improving the quality of life for the homeowner.
Owens Corning building scientists were also able to customize

specic strategies to deliver air sealing, moisture management,
acoustic solutions that improve the overall energy efciency,
durability, sustainability and comfort performance for the Today,
Tomorrow and Future elements in the home.
Visitors to the concept display will see the Owens Corning ProPink
High Performance Attic System featured as well as cutaways
of the High-Performance Wall System featuring ProPink Complete
Blown-in Wall System and FOAMULAR 250 extruded
polystyrene insulation.
Using these familiar, safe system solutions, Owens Corning is
helping the Greenbuild KB Home ProjeKt demonstrate how building
healthy, sustainable, code-compliant, comfort-driven homes can be
achievable, affordable and protable for builderswhile delivering a
new standard of comfort and performance for the homeowner.
For more information on how Owens Corning can

help you achieve sustainability in the homes you
build visit owenscorning.com.
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2016
TITLE SPONSOR
Innovative Ventless
Dryer Technology
Provides Flexible
And Efcient Design
Whirlpool HybridCare Dryer overcomes traditional
constraints of venting, saves energy.
The functional and aesthetic complications of where to put a unit
washer and dryer can pose a challenge for builders, however,
your design options have increased exponentially because of an
innovation that is transforming the laundry market in the United
States. The Whirlpool HybridCare Dryer relies on a ventless heat
pump design, making it possible to install the appliance without a
dryer vent.
The energy efcient design, which reduces energy consumption by
as much as 73 percent1, means cost savings for homeowners, and
even allows users to more precisely control their energy usage.
Whirlpool ventless dryers come in three sizes:
Whirlpool 4.3 cu. ft. 24 Compact, Front Load Compact Dryer,
which ts perfectly into most small spaces
Whirlpool Closet Depth Front Load Washer & HybridCare
Dryer, which is small enough that it can be tucked away behind
closed doors
7.3 cu ft. HybridCare Ventless Duet Dryer with Heat Pump
Technology, which is Energy Star Certied and easily installs
in more places thanks to the HybridCare true ventless heat
pump technology
This type of purposeful innovation is a win-win for builders and
homeowners and contributes to a more sustainable future.
For more information visit insideadvantage.com.
When compared to pre-2004 traditional dryers paired with a matching washer, normal cycle, electric only.
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2016
FOUNDING SPONSOR
The Universal Surface

Dekton set to change the surface industry.
Sure Dekton by Cosentino is great for kitchen and bathroom
countertops, but its application possibilities dont end there. Indoor
and outdoor wall cladding, stairs, ooring, custom furniture, even
swimming pool surrounds are all a natural t for this advanced
product. With limitless possibilities, Dekton is taking the architecture
and design world by storm as the nearly indestructible surface
makes its way into savvy consumer homes and newly designed
commercial spaces.
Photographer: Fred Donham | Designer: Nar Fine

Carpentry, Inc.
Photographer: Fred Donham | Designer: Nar Fine Carpentry, Inc.
From a spectacular replace surround in a bedroom to a sleek

building faade, Dekton offers benets and features that set it apart
from traditional surface options. Designers are beginning to use it
in backyard spaces and architects, as an alternative to traditional
ooring because of its resistance to abrasion. It will not show signs
of wear, will never need to be renished and cleans incredibly well
thanks to its near-zero porosity.
Dekton also features high heat and thaw resistance, meaning it is
made to withstand the coast to coast weather uctuations from
sweltering heat to the bitter cold. No matter the amount of sunlight,
Dekton will not fade over time due to its high UV resistance. Whether
youre following the outdoor kitchen trend or looking to design a
different exterior space, this products unsurpassed versatility makes
it an ideal choice. On the home front, you can stop worrying about
scratches, stains or burns to your kitchen countertops. Dekton is
well known for high scratch, stain and heat resistance.
Made with a sophisticated mixture of raw materials, this ultracompact surface comes in a wide variety of colors and nishes for
any design projectcommercial or residential.
For more information visit dekton.com.
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2016
FOUNDER SPONSOR
LPs Path To
The Future
LP Building Products is focused on advancing the state
of the building industry with innovative, engineered wood
solutions. Its an effort thats aimed at simplifying building
processes with products that perform multiple functions
and stand the test of time. When LP creates new materials
that are differentiated from the competition, it gives builders
and contractors a distinctive edge. LPs customers will
have the advantage of building with efficiency without
sacrificing durability, performance and beauty.
Building A Vision
To help bring the future a little closer to the present, the LP Growth
& Innovation Team was formed in 2015. This group of technology
experts, analysts and business managers are dedicated to identifying
key market trends and empowering LPs individual business units to
discover inspired solutions. This proactive approach to sustainable
growth will fuel the success of builders who earned their good
reputations by using the best products for the job at hand.
Innovation Thats Hard At Work

Several new LP products are changing the rules of traditional
building practices. One such product is LP ArmorStrand
Substrate for acrylic textured nishes. Builders can quickly and
affordably achieve the look of 3-coat stucco with a system thats
engineered for strength. Another innovation, LP FlameBlock FireRated OSB Sheathing, takes building codes head-on by offering
more protection, or reducing the number of layers in the wall.
To learn more about the newest LP Building Products,

visit LPCorp.com.
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2016
FOUNDING SPONSOR
Panasonic Introduces Home Health Link

The First Smart Home Security And Fresh Air
Control System
In response to the exploding demand for smart home

systems, Panasonic Eco Solutions North America has
announced its own unique offering that addresses what
consumer surveys say homeowners want mostsecurity
and fresh, healthy indoor air.
Home Health Link is a rst-of-its-kind, fully-customizable home
security and fresh air control system that features built-in intelligence
and automatic adaptability to manage moisture and ensure indoor
air quality. The system is an expansion of Panasonics Connected
Home monitoring system that uses a Wi-Fi enabled hub unit to
communicate with a variety of home safety and security devices.
Home Health Link goes a step further by incorporating Panasonics
acclaimed ventilation fans and fresh air systems for a total safe and
healthy home solution.
As part of a phased rollout, Home Health Link will initially utilize
Panasonics completely customizable WhisperGreen Select
ventilation fans, soon followed by a complete offering of fresh air
supply and balanced ventilation products that will also incorporate
the Home Health Link smart module. A complete package of
sensors, in communication with the hub unit, will detect moisture,
temperature and pollutants that negatively impact a homes indoor

air quality and comfort. The system will also ensure ventilation code
compliance by monitoring air ow performance and automatically
controlling air ow and activating or shutting off fans to ensure indoor
air quality at all times. Ensuing phases will bring kitchen exhaust
systems on line to create a comprehensive yet seamless fresh air
system where all ventilation, heating and cooling systems work
together to not only expel airborne toxins like formaldehyde, but also
lower energy bills.
Looking ahead, Panasonic will leverage its unique breadth of product
offerings, incorporating its best-in-class solar panels along with air
conditioning and lighting systems. The versatile hub unit can control
up to 50 devices in all.
To learn more about our high performance

ventilation fans and indoor air quality solutions,
visit us.panasonic.com/ventfans.
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2016
ALLIANCE SPONSOR
Carrier: Leading The Way In Home Comfort.

Meeting The NetZero Challenge.
Carrier is committed to working with our customers in the home building
industry to meet the ambitious goals of Californias Net Zero 2020 campaign.
Together with KB Home, we have developed an industry-leading home
comfort package that includes a heating and cooling solution powered by
inverter technology and complemented with the Carrier Cr thermostat to
achieve signicant energy savings at a reasonable cost. Coupled with a Carrier
air purier that will capture and kill airborne pathogens such as bacteria,
viruses and mold as well as an energy-recovering ventilator to remove stale air
from your home while keeping valuable energy from escaping. This solution is
designed for maximum comfort by achieving a smart blend of fresh outdoor air
and conditioned indoor air as well as energy consumption management by the
Cr thermostat that ensures every home comfort dollar is spent wisely.
Please visit the KB Home booth as well as the Carrier booth at the Greenbuild
International Conference and Expo in Los Angeles to learn more about the
technologies that will help take the Net Zero home from concept to reality.
For more information visit

http://www.carrier.com/residential/en/us/cor/.
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2016
ALLIANCE SPONSOR
DuPont Delivers High Performance Products Backed By

Unrivaled Support
DuPont is at the forefront of the search for sustainable building solutions that improve
comfort, reduce our environmental impact, and enhance life around the world. However, we
do realize that DuPont products, people and science are only a part of the solution. Through
collaboration with other manufacturers, we can deliver tested wall systems that offer industryleading water, air and thermal performance.
When builders choose DuPont products, they get solutions that meet the highest
performance standards and are backed by industry-leading building science, pioneering
material science and unrivaled industry support.
The DuPont Building Knowledge Center is the source of the DuPont product and
technical information needed to build durable and energy-efcient structures. These
resources include The Tyvek Specialists Network, a national team of highly trained eld
representatives that are available to provide on-site guidance and training to help make sure
the job gets done right.
For more information visit weatherization.tyvek.com.
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2016
ALLIANCE SPONSOR
Walls And Beyond

Tile is covering more than just floors.
For nearly 50 years Emser Tile has distinguished itself as one of the
countrys largest and leading designers, producers, and marketers of
tile and natural stone. Emser offers a comprehensive selection of more
than 4,500 products for both interior and exterior applications.
The tile category has been evolving rapidly and product lines are
updated constantly to reect emerging trends. One key shift has
been the use of tile beyond oors and backsplashes. Residential
and commercial projects are using tile regularly as full feature walls
in a multitude of applications. Technological advancements in tile
manufacturing and setting materials, along with features on home
improvement shows and the expansion of social media channels,
have driven growth in this area.
Several new decorative wall tile collections from Emser offer a variety
of patterns, textures, and nishes to create a seamless transition from
horizontal to vertical surfaces.
For more information on our full product line visit emser.com.
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2016
ALLIANCE SPONSOR
Generation Brands: Offering Builders Whole

Home Lighting Solutions And Exceptional
Customer Service
Generation Brands, one of the largest US designers and manufacturers
of residential decorative lighting and fans whose brands include
Sea Gull Lighting, Ambiance Lighting Systems, Feiss, LBL Lighting,
Monte Carlo Fans and Tech Lighting, offers builders and remodelers
more than 30,000 indoor and outdoor xtures from which to choose.
According to Matt Vollmer, Generation Brands Chief Sales Ofcer, Our
whole home solutions give builders and remodelers the largest selection
of lighting and ceiling fans in the industryno matter if theyre building
starter homes or dream homes. Additionally, we have hundreds of
ENERGY STAR-qualied and LED selections for those consumers who
are looking for increased energy savings and efciencies. Vollmer also
said while each brand has a distinctive product offering and price points,
they share the same exceptional state-of-the-art distribution facilities,
sales force, distribution partners and customer service goals.
For more details, go to Generation-Brands.com.
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2016
ALLIANCE SPONSOR
2)/VTLZ/LSWZ+LUL;OL5L^:[HUKHYK0U
4VKLYU9LZPKLU[PHS+LZPNU
Bold geometric patterns. Traditional values expressed in new ways. The
breathtaking integration of contrasting styles. Progressive architects and
builders are achieving brilliant results by combining Artisan siding with the
Reveal Panel System by James Hardie.
The deep shadow lines cast by extra thick Artisan lap siding and the
distinctive V-groove of Artisan V-Rustic siding add visual impact to a home.
KB Homes leverages the clean lines to achieve a Modern Vintage aesthetic.
For those who desire to build with the highest end panel systems, the more
HVYKHISL9L]LHS7HULS:`Z[LTWYV]PKLZL_JLW[PVUHSKLZPNU]LYZH[PSP[`HUK
durability. This complete, customizable system of commercial grade panel,
trim and fastener products helps you elevate the art of modern design.
Both the Artisan and Reveal lines deliver the same uncompromising
performance youve come to expect from James Hardie products to help
keep your homes looking beautiful with lower maintenance for many years
to come.
-VYTVYLPUMVYTH[PVU]PZP[QHTLZOHYKPLJVT
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2016
ALLIANCE SPONSOR
Kwikset Featured As Part Of The Smart Ecosystem Of

The Greenbuild KB Home ProjeKt
There are many choices you can make when upgrading your house to a Smart Home. One
area that often gets overlooked is your door hardware. Kwikset has the hardware that meets
your new technology needs and ts your style, while providing the strongest security.
Kwikset will be featuring the Tavaris Handleset, Sydney Lever, contemporary low-prole
Downtown Deadbolt and the 916 SmartCode with HomeConnect at the Greenbuild
KBHome. These Kwikset products integrate seemlessly into the technology ecosystem
of any smart home and provide a sleek look that ts beautifully into any contemporary
style. The 916 SmartCode Deadbolt with HomeConnect allows homeowners to check the
security of their household whether theyre within their own walls or away. Additionally, the
916 SmartCode Deadbolt and Downtown Deadbolt have Kwikset proprietary SmartKey
technology, providing superior security that is pick resistant, and bump proof.
Be sure to visit the Greenbuild KB Home to try out the Kwikset products for yourself.
For more information, call 1.800.327.LOCK (5625) or visit kwikset.com.
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2016
ALLIANCE SPONSOR
TERM Sustainable Pest Barriers

Sustainability has improved thanks to building envelopes that exclude moisture and save
energy. Polyguard has produced building envelope products for use since 1970. Our
new TERM Pest Barrier System is based upon Polyguards established building
envelope products.
Development of three science-based pest barriers began when Polyguard met with Texas
A&M entomologists in November 1999. We discussed upgrading Polyguards building
envelope materials to act as non-chemical pest exclusion barriers. After 16 years of testing at
Texas A&M, we now have the TERM Barrier System, which blocks almost every gap in the
structure where pests enter.
Our original goal, to exclude subterranean termites, was reached in 2011 after lab tests,
SVUN[LYTLSK[YPHSZHUKJVUZ[Y\J[PVUWYVQLJ[Z)HYYPLYZ[VL_JS\KLTHU`[`WLZVMWLZ[ZOH]L
been developed since 2011.
TERM Barrier Systems integrates three proven types of barriers; sealants, screens, and
particles. Together these barriers can protect almost every square foot of a structure from
pest entry.
For more information visit PolyguardBarriers.com.
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2016
ALLIANCE SPONSOR
Build Tomorrows Smart Homes Today With Savant

As more connected devices enter the home, the future of homebuilding will rely on delivering
an elevated control experience to new home buyers. But forward-thinking builders are
making smart-home technology standard in their new developments todayand their brand
of choice is Savant, the premier experience in home automation.
Enabling homeowners to control their lighting, climate, entertainment, and security from a
single interface, Savant makes it easy to have everything in their home just the way they like it.
From iOS or Android devices, your homebuyers will be able to control devices from leading
brands such as Sony, Lutron, Honeywell, Sonos, and more.
With systems that are easy to install, reliable, and scalable enough to t any size home,
Savant is the home automation partner for forward-thinking builders. And because Savant
products are designed to be future-friendly, you can be safe in the knowledge that the smart
homes you build today will also be the smart homes of tomorrow.
For more information visit savant.com.
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2016
ALLIANCE SPONSOR
Sherwin-Williams Advanced Coatings Make

For Happy Homeowners And Builders
Sherwin-Williams is a proud partner with builders to drive homeowner

satisfaction by providing exceptional service and offering the latest
in coatings technology. Used strategically, color and paint quality
upgrades can provide an improvement in home performance, value and
marketable design to increase homebuyer satisfaction and protability.
resistant Staphylococcus aureus), E. coli (Escherichia coli), VRE

(Vancomycin-resistant Enterococcus faecalis) and Enterobacter
aerogenes within two hours of exposure on a painted surface.
The Greenbuild KB Home ProjeKt offers a look ahead in both

structure and design and helps showcase the added value of two of
Sherwin-Williams most innovative advanced coatings being used in
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86 B U I L D E R
Credit Tk
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Galella Collection
BUILDER 87
HEN PAT BURNS BEGAN HIS CONSTRUCTION
career in California in 1970, houses sprang

forth from the ground in as little as two
months, and it didnt cost too much to get them started.
Today, he says, cycle times have doubled, and he estimates
that fees, labor regulations, and more stringent building
codes add roughly $47,000 to his typical 1,400-square-foot
homeand thats if everything goes right.
Building impact fees are now almost 20% of our costs,
says Burns, who is talking about building in Chico, two
hours north of Sacramento in the Central Valley and a far
more affordable place than, say, Mountain View. They just
keep throwing more on us. If you have to do an Environmental Impact Review, thats going to add a year onto your
project and cost $50,000 to start.
Despite the high fees, Burns has built 1,500 homes in
California throughout his 46-year career. In Chico, hes
overseeing the build-out of the 423-unit Creekside Landing
subdivision as a site superintendent with Concord, Calif.
based Discovery Homes.
Dont get me wrong, I am all for mitigating the
impacts of new homes, says Burns. But it does come
with a cost. In California, it has made entry-level housing almost nonexistent.
The data back Burns up. According to Alan Ratner, an
analyst at New Yorkbased Zelman & Associates who recently surveyed builders about fees in 37 markets nationally,
California housing companies are being squeezed between
the states high impact feeswhich he pegs as the highest in
the nationand the lowered Federal Housing Authority
88 B U I L D E R
(FHA) loan limits that came out in 2014, which set a de

facto benchmark of affordability for rst-time home buyers.
Depending where you are in California, youre in the
hole by at least $50,000 before you even put a shovel in the
ground, Ratner says. That makes it really challenging to
build an affordable product there.
Typical fees in San Francisco are $72,600 per home; in
Sacramento, theyre $62,000. And for the six California markets highlighted in the Zelman & Associates report, the average is $51,650, which is nearly two-and-a-half times the
national average of $21,000. The Golden States drive to
have all new homes meet zero net energy (ZNE) criteria by
2020 could add an additional $25,000 in expenses. All told,
that would equate to an extra $75,000 in fees and increased
construction costs to build a house in California.
The average new-home price in California now stands
at $621,135, according to San Clemente, Calif.based Real
Estate Economics, which surveys all new-home communities across the state on a quarterly basis. Thats 73% higher
than the national average new-home price of $358,200 in
June 2016, according to the U.S. Census Bureau. Tie that
into the fact that housing demand continues to rise, and
building houses for rst-time home buyers in the state has
become akin to so many other California dreams, like
nding fame on Hollywood Boulevard: still possible, but
with the odds stacked heavily against most comers.
THE PROBLEM
The potential $75,000 in added costs from fees and ZNE
goals is just a fraction of what has contributed to the staggering price of housing in California. The rest comes simply
from supply and demand, or more accurately, a lack of supply that has run into a torrent of demand. The collision of
the two has helped create, in a convoluted way, the states
ever-increasing fee structure that builders like Burns face.
At the highest level, California has had a policy in place
for decades that has restrained the supply of housing and
driven up the cost, says Chuck Reed, former mayor of
San Jose, where the median home cost $760,000 in April,
according to CoreLogic. Its simple supply and demand.
And surprise, supply and demand works.
According to a 2015 report from the California Legislative Analysts Ofce (LAO), the state Legislatures nonpartisan scal and policy analysis arm, since 1980, California
has built half of the housing units it neededabout 100,000
per yearto keep up with demand. And thats just in aggregate. In high-demand locales like San Francisco and
Los Angeles, the housing decit is even greater. Most of
Californias coastal counties needed to build three times
as much (or more) housing as they did, the report claims.
Stated differently, during the past 36 years, California
did not build the additional 3.6 million homes that it needed to keep its skyrocketing prices in check. To put that
number in perspective, it would take the collective efforts

of every home builder in the country, building nonstop at
2016s projected pace of 1.26 million housing starts, three
years to put a dent in the states problem.
The report concludes that NIMBYism, local communities lack of nancial incentives to approve more housing,
and anti-growth proponents who go to daunting lengths to
block development have contributed to the problem, as well
as more inveterate challenges such as a scarcity of suitable
land along the coast and an ever-increasing population.
The LAO report found that the average cost of homes in
California is two-and-a-half times higher than the rest of
the country, and rents are 50% higher. It also pointed to
evidence that high housing costs were making it difcult for
companies to recruit employees, even in Silicon Valley, and
threatened the states jobs base. Other reports that came out
in its wake highlighted a net migration of 625,000 people
out of the state from 2007 to 2014, primarily among lower
income earners, attributed to housing costs.
All of which leads to the question: how did California get
to a place where its set to tack $75,000 onto the cost of a
new home in the midst of a housing crisis thats eroding its
jobs base and pushing the countrys most populous state
into an unwinnable war of the haves and have nots?
DUTCH, CEQA, & THE LAW OF SUPPLY & DEMAND

The place to begin answering that question, it turns out,
can be found back in 1970, the same year Burns got his
start banging nails in Orange County. Thats when the
events were set in motion that led, however indirectly, to
California having the highest impact fees in the country
today. And its the year, according to the LAO, that marks
the true start of Californias current housing crisis.
According to the LAO, California home prices, while
still 30% higher than the rest of the
country, increased at about the same
pace as the national average until
1970. That year, they began to accelerate until they were 80% higher in
1980, and twice as high in 2010.
That acceleration started, as is the
case with many aspects of Californias
modern political landscape, under the
administration of Ronald Reagan. In
1970, the thenCalifornia governor
signed the California Environmental
Quality Act (CEQA), the states broad
development review mandate, into
law. Its been at the heart of Californias housing shortage ever since.
Modeled after the National Environmental Policy Act (NEPA) of
1969, CEQA originally was cast as a
progressive mandate that would protect the rolling hills,

towering forests, and jagged coastlines that make California so unique. It obliged local municipal bodies to consider
environmental impacts before approving new housing
projects, and if any were found, to require developers to
come up with a plan to mitigate those impacts.
But what CEQA has become, housing advocates say, is a
bludgeoning club used by anti-growth and NIMBY interests,
as well as labor groups, to either block development outright
or hold developers hostage to their concessions.
I call it the California Extraction Quantity Act, says
Reed, the former San Jose mayor. Its the primary tool used
to obstruct housing and drive up the cost of housing,
because of the threat of litigation. Under CEQA, its easy to
litigate and easy for developers to lose.
CEQAs effect on housing has been so widespread that in
2013, the San Francisco Chronicle called for legislators to stop
the exploitation of an environmental law to achieve objectives
(such as unions using lawsuit threats to coerce labor agreements) that have nothing to do with the environment.
[Editors note: Not everyone thinks CEQA has had such a
negative effect on housing. A recent study by the Rose Foundation for Communities and the Environment, prepared by
BAE Urban Economics, asserts that CEQA has had minimal effect on the new-housing market. The report can be
found at pcl.org/media/CEQA-in-the-21st-Century.pdf.]
The newspaper railed against CEQAs duplication of
project reviews, and how its been used to slow or stop even
environmentally friendly projects, such as a San Francisco
plan to add 34 miles of bike lanes. It cited a battle in San
Jose, where a labor union plied CEQA to stop a downtown
high-rise project to pressure the developers not to use outof-area subcontractors. Reed described the episode as an
abuse of the environmental process.
BUILDER 89
But even when developers do get past CEQA, it takes

time and cash. Highpark, a 676-unit development in Los
Angeles San Pedro area being developed by iStar, nally
broke ground in April, a year after the rst homes were
supposed to be completed. The projects CEQA review took
three years and added at least $3 million to the cost of the
development, according to Steve Magee, iStars executive
vice president of land and development. That equates to
$4,400 per lot, without turning dirt, and is separate from
hard development costs.
I dont have a problem with completing the reviews to
make sure a project is done right, Magee says. But the
issue is, a lot of developers dont have the staying power
and deep enough pockets to go through it. So it shakes off
potential projects, or makes proposed projects smaller,
which results in fewer homes getting built in a market that
is screaming for housing.
To wit, developer Bob Bisno in 2005 originally envisioned Highpark as a stacked community of 2,300 homes
on what used to be Navy land. But that proposal ran into
a wall of protests, and eventually produced todays development, which will have two-thirds fewer houses with
prices ranging from the high $600,000s to more than
$1.2 million. The rst homes should be available in 2017.
Magee, who started his career as a city planner in Florida,
says land and development costs in Southern California run
as high as 40% to 45%, sometimes up to 50%, of a homes
nal number. If your home price is $800,000, you might
have a finished lot cost of $400,000, he says. In Texas
Dallas-Fort Worth market, by comparison, he says lot costs
represent only about 20% to 25% of home prices.
There have been efforts to amend CEQA, including a
push in 2013 by Gov. Edmund Jerry Brown, who called
CEQA reform the Lords work at the time. The tact failed.
90 B U I L D E R
This summer, Brown tried again, calling for a by-right

exemption of CEQA review for urban projects in areas that
had already been zoned for high-density housing and included a sliding percentage of affordable units, depending on
proximity to transit. It would have essentially given such
projects ministerial approval, stripping local boards of the
power to block them. Brown tied the proposal to the states
budget, but to no avail. At press time, the law was considered
all but dead, at least for this session, despite the fact that the
state Legislature is controlled by Browns political party.
Powerful lobbying groups were arrayed against the proposal. Its a back-channel way to get around CEQA, says
Dan Carrigg, legislative director of the League of California Cities. This proposal takes all local discretion out of
the approval process.
Housing proponents say thats exactly the point. Most
cities want to limit growth, not increase it, says Reed.
The State Building and Construction Trades Council of
California (SBCTC), which is often accused of using the
threat of blocking projects with CEQA to get contracts from
developers, claimed the by-right exemption was a bad idea
for Californias environment.
By-right gives developers a blank check, says Cesar
Diaz, legislative and political director at SBCTC. No
matter where you live, having a standard like CEQA in
place is critically important. Our members are people who
live in the community. Theyre middle class. We want them
to have not only quality of life, but also economic opportunities through jobs. And we dont want them to have to live
in areas where development is harmful.
HOWARD JARVIS & PROP 13

While CEQA and environmental reviews add millions in
costs to housing projects, the localities that have the power
to approve or block them dont get any
of that money. They also get a much
smaller slice of the property taxes that
often incentivize communities in other
states to approve new development.
Cities will tell you that from a
property tax perspective, housing is a
loser, says David Cogdill, president
of the California Building Industry
Association (CBIA). Youve created a
situation where property values are
going up, but the localities dont
benet nancially.
The reason for that is Proposition
13. Voters passed the law in 1978 to
cap the rate at which local property
taxes can increase, and effectively put
the state in charge of dolling out the
money once it was collected.
UNLIKELY
REGULATORS
No person of sound mind could
possibly assert that Ronald Reagan
was a proponent of regulation.
When he signed the California
Environmental Quality Act (CEQA) in
1970, he was running for re-election
in an openly hostile environment,
having frozen state hiring and raised
taxes. He battled student protestors
over myriad issues, including the
attempted imposition of a modest
tuition at state colleges, which
until then had been free. He was a
politician, politicians need to get
elected, and the CEQAcoming
on the heels of the passage of the
National Environmental Policy
Actwas a means to that end.
The same went for Howard Jarvis.
Though he positioned himself as
an everyman, he was a politician.
Jarvis goal, amid a rapid run-up in
home values, was to stop spiraling
residential tax assessments and
the soaring property taxes that
resulted. His product, Proposition
13, was passed by California voters
in 1978. His modus operandi
was to slap a lid on revenue with
the assumption that it would cap
government spending. It didnt.
Here, in an excerpt from a
BUILDER article written in May
by Adam Deermount, co-founder
of Landmark Capital Advisors in
California, is how Prop 13 has
affected entry-level housing:
In 1978, nearly two-thirds of the

state voted to reduce the property
tax to 1% of the value at the time
that the real estate was purchased
and capped future increases to
no more than 2%. It also took the
responsibility for allocating property
taxes from local municipalities and
transferred it to the state. Prop 13
was intended to avoid the New Jersey
scenario of people getting taxed out
of their homes. In that regard, it has
been a success. However, it created a
major market distortion and provided
fuel that helped property values soar.
It also led to a decrease in
local revenues and forced local
governments to rely increasingly on
92 B U I L D E R
impact fees to mitigate the impacts

created by new development. In
other words, local governments
could no longer rely on spreading
the cost of new infrastructure
across an entire tax base, they now
had to focus the cost solely on new
development, which constitutes a
much smaller number of units. It
also means that a local government
only gets one bite at the proverbial
apple via impact fees rather than a
recurring income stream that can be
assessed upward as need dictates.
This one bite mentality provides
an incentive for local governments to
hike non-recurring fees to pad a highly
irregular income stream, shifting
the full infrastructure burden to new
units to the benefit of existing ones.
Prop 13 didnt actually force a
reduction of government as many
claimed it would. Instead, it merely
shifted the burden of funding the local
government from many to few, and
home builders and land developers
are paying the price for that today.
In a market like coastal California,
with highly restricted zoning and
astronomical land and home prices,
Prop 13 provides a huge incentive
for homeowners to stay put rather
than move since they cant take their
[capital gains tax] basis with them
(aside for a provision that allows
older homeowners a one-time basis
transfer). This leads to the scenario
where a home could have an assessed
value of less than $100,000 and
a market value of several million
dollars while an identical house next
door is worth $2.5 million and has
an assessed value of $2.5 million.
There was a time when coastal
cities in California had entry-level
housing stock. Today, those starter
homes are getting knocked down
or renovated by their owners since
there are incentives to stay put.
When they do sell, the homes are
often bought by buyers who rebuild
or renovate, or developers that do
the same to sell at a higher price. As
a result, the older, entry-level housing
stock near the coast is long gone,
and we are now stuck relying on
new construction in inland locations
where its nearly impossible to build
affordably because impact fees are
so high relative to home prices.
Large, sweeping statutes like
Prop 13 have consequences that
continue to manifest decades after
they are passed. In this case, its
a dearth of entry-level housing.
Sponsored by the Howard Jarvis Taxpayers Association,

whose founder once appeared on the cover of Time with a
raised st under the headline Tax Revolt!, the initiative was
originally aimed at making sure existing homeowners, especially retirees on a xed income, didnt get taxed out of their
homes. A subsequent measure required all local government
tax increases in California be approved directly by voters.
With that structure in place, cities often favor commercial
or retail development over housing, because they get a larger
portion of the sales and other taxes those projects generate.
Local governments all want more jobs, but we dont want
more housing, Reed says. We make money off of employment. We lose money on housing, which puts a demand on
services. We all pretend that jobs dont create demand for
those services, too, because those workers are presumably
going to live somewhere else. We just dont know where.
That process also explains, in a way thats as convoluted
as Californias revenue structure, why the impact fees Burns
and other builders pay in the state are so high. Basically,
cities can either block housing with CEQA and not incur the
extra costs of services housing creates, or approve that
housing, but raise impact fees, the last best option that
remains for them to increase funding.
Essentially, cities cant raise the property tax at all, and
if they want to raise any other type of tax, it requires voter
approval, explains Brian Uhler, an analyst at the LAO who
co-authored its 2015 report. So in California that results in
higher fees on developers because that is the path of least
resistance for localities to raise revenue.
As the kicker, because CEQA has stopped many homes
from being built over the years in California, any impact fees
imposed on houses that do get built inevitably go up because
theyre spread across fewer units instead of the entire tax
base. That, in turn, adds to per-lot costs because fewer homes
are built. Cities only get one bite at the apple, and they take
that bite at impact fee time, iStars Magee explains.
Kris Vosburgh, executive director of the Howard Jarvis
Taxpayers Association, says the argument that Prop 13
contributes to Californias high home prices is just another
urban myth that opponents use to smear the law.
Youre getting input from morons, Vosburgh counters.
Local ofcials behave stupidly and make bad decisions, so
thats Prop 13s fault? Prop 13 has absolutely nothing to do
with the housing supply in California.
ONLY IN CALIFORNIA: HOW ZERO = MORE

It doesnt appear that building affordably will get easier any
time soon. With Californias goal to have all new homes be
ZNE compliant by 2020meaning theyll produce as much
energy as they useadd-on costs for builders will only go up.
Bob Raymer, a senior engineer and technical director with
the CBIA, says ZNE could add another $20,000 to $25,000
to the construction of homes in the state.
The California Public Utilities

Commission (CPUC) and the California Energy Commission (CEC), both
run by governor-appointed boards,
introduced those goals in 2007, and
gained broad support from both former Gov. Arnold Schwarzenegger and
Brown. Since the CEC sets the energy
efficiency standards for the states
building code, the goals likely will
become compulsory by 2020.
The CPUC has estimated ZNE
will add anywhere from $2 to $8 per
square foot to the cost of a California
housethe top end of which would
add $11,20 0 to Burns t y pica l
1,400-square-foot home.
The CEC hasnt put a number on
the costs it will add to the building
code in 2020. But when asked how it
can justify the additional costs for
homes that are already priced beyond the means of many
Californians, a commission spokeswoman pointed to the
fact that all ZNE components need to pay for themselves
over the 30-year life of a home. So any extra costs home
buyers incur up front, theyll get back over time.
Everything we adopt into the code has to be cost effective and technically feasible, says Amber Pasricha Beck,
CEC public information ofcer, energy efciency. It may be
possible to reach zero net energy in some environments, but
not in others. In some cases, it may not be cost effective.
CALIFORNIA DREAMIN
When a situation is dire, an optimists usual responseand
Californians are nothing if not optimistsis that things can
only get better. Which makes it all the more troubling that
no one is saying that about the states housing situation.
We characterize it as unsolvable, says John Mulville,
vice president of consulting for Real Estate Economics.
When we speak to California audiences, we tell them, If
you own a home in California, dont sell it. We have a serious
undersupply that cannot be remedied. As long as people
keep coming here, even if the economy isnt great, the price
of your house is going up.
Then, theres Senate Bill 50 (SB 50), which established a
three-legged stool to fund schools through local bonds, a
state match, and development impact fees. But state funding
for that program dried up in May, triggering a fee-hike provision in SB 50 that would add another $15,000 to $30,000 in
development fees, according to Zelman & Associates Ratner.
(That would bring the running tally of added costs tabulated
in this article as high as $105,000 per house.) To prevent that
from happening, the CBIA collected enough signatures to
get Proposition 51 on the ballot this fall, which will ask voters
to approve $9 billion in new school bonds. If it passes, it
would take at least some of the fee burden off builders.
Finally, Senate Bill 32, which passed at the eleventh hour
in the state Legislature this summer, could tack on more. The
new law, as part of the California Global Warming Solutions
Act of 2006, now requires Californias greenhouse gas emissions to be curtailed to 40% below 1990 levels by 2030, and
80% below 1990 levels by 2050. The law could add $58,000
onto the cost of building a home in California, according to
a 2015 study commissioned by the CBIA, though many of
those costs would overlap with the 2020 goal for ZNE
homes. (Cogdill notes that changes to the bill since the CBIA
report came out last year could temper costs, too.) State Sen.
Fran Pavley (D-Agoura Hills), the sponsor of the bill, did not
respond to a request for comment.
STILL HAMMERING AWAY

Back in Chico, all the new costs, requirements, and wrangling to get projects approved add up to a categorically different California home building industry than the one Burns
started out in, where houses cost more than what rst-time
home buyers can qualify for and take twice as long to build.
In the 1980s I could manage a 40-house project myself,
says Burns. I could build a 2,700-square-foot home in 60
days without a computer or a cell phone. Now, I spend most
of my time at the computer, and it requires having an assistant superintendent to deal with all the paperwork.
In other words, Burns is left banging away at the keyboard to get his approvals, instead of banging nails, just for
the privilege of paying the highest fees in the country to build
the homes California so desperately needs. B
BUILDER 93
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NAHB NOTES
O C T O B ER 20 16
CHAIRMANS LETTER /
CAST YOUR VOTE

The stakes are too high to not vote in Novembers election
H O M E I N N OVAT I O N R ES E A R C H L A B S 10 2
BY E D B R A DY
D I E T Z S EC O N O M Y 10 4
Herman Ferrar
ts hard to believe that this critical, unprecedented

electionwhich has gripped the American public and
media for monthswill come to a head on Nov. 8.
In just a few short weeks, voters nationwide will go to
the polls to choose our next president, congressional representatives, and state leaders.
As Election Day nears, Im proud to say that the NAHB is
rmly established as an authoritative representative of the
housing industry within both Democratic and Republican
political circles. Perhaps most signicantly, both parties sent
a speaker to our recent Board of Directors meeting to talk about
the importance of housing.
The Republican Party nominee, Donald Trump, addressed
our board. The fact that an NAHB meeting drew a presidential
candidate speaks volumes to our efforts to elevate housing as
a national priority in this election.
On the Democratic side, Hillary Clintons campaign sent
Gene Sperling, one of Clintons top economic advisers.
Every new administration and every new Congress signals
a new dynamic in Washington, D.C. The NAHB has been
working hard to ensure that housing concerns are at the top of
the agenda in that new dynamic.
I had the chance to speak to party ofcials and other lawmakers when I attended both national conventions this past
summer. NAHB also has introduced recent programs that
honor ofcials who have prioritized housing. The Defender of
Housing Award recently was given to roughly 120 members
of Congress whose actions show they understand and appreciate the signicant role that residential construction plays in
the national economy.
This election also marks the first time that NAHB has
endorsed congressional candidates. This endorsement is a sign
to our members and other friends of housing that they should
support and vote for a specic candidate because of his or her
track record as a pro-housing and pro-business candidate. To
clarify, the NAHB does not endorse presidential candidates.
The national ofce worked closely with state and local
HBAs on both of these initiativesno official received a
Defender of Housing Award or NAHBs endorsement without
the support of the local HBA.
Ed Brady
NAHB Chairman
of t h e B o a r d
NAHB also raises money for BUILD-PAC,

its bipartisan political arm that helps elect
housing-friendly candidates to federal ofce.
The association is striving to raise $3
million for the PAC in this election cycle.
NAHB takes these actions in the political
realm because it knows our elected leaders support is critical for the housing industry to continue to move forward. For instance, ofcials
need to take on housing nance reform so that
all deserving Americans can access a mortgage.
Leaders also need to ght overly burdensome
regulations that slow down business operations
and raise the price of housing.
It is not too late to ensure that housing is a
winner in November. Before heading to the
polls, evaluate the candidates and think about
who would be the best proponent of the housing industry. Whatever you do, make sure to
cast your ballot on Election Day. The stakes are
too important to sit this one out.
SINGLE-FAMILY HOME BEDROOM TRENDS
A recent U.S. Census Survey of

Construction shows that 10%
of single-family homes started in
2015 have two or less bedrooms,
43% have three bedrooms, 36%
have four bedrooms, and 11%
have five or more bedrooms.
Three bedroom homes
consistently have been the most
common type of new single-family
home built, but the share of new
homes with three bedrooms has
declined, going from 54% in 2009
to 43% in 2015. On the other
hand, the share of new singlefamily homes with four bedrooms
increased from 29% in 2009 to

36% in 2015. The increase in
the share of new homes with four
or more bedrooms in 2015 may
reflect a post-recession move by
builders to focus on larger, higher
end homes.
However, recent data indicate
that this trend started to reverse
with new 2016 data showing that
the median square footage of new
homes has declined. Growth in
the number of smaller homes, such
as townhomes, may emerge going
forward in response to first-time
buyers returning to the market.
B U I L D E R 10 1
NAHB NOTES
O C T O B ER 20 16
HOME INNOVATION RESEARCH LABS /
PROCESS IMPROVEMENT
Cooperation with ICC-ES creates a one-stop shop for building
product testing, listing, and product evaluation
ome Innovation Research Labs

has joined with ICC Evaluation
Service (ICC-ES)the premier
building product evaluation/
listing agency in North Americato
better serve the manufacturers of building
and plumbing products seeking evaluation reports or listing/labeling services.
This cooperation will improve the
testing/evaluation/listing process for
manufacturers, reduce the time from
application submittal to publication of an
ICC-ES evaluation report, and make the
overall process much more predictable in
terms of the required time and cost. Manufacturers will be able to develop a test plan
more quickly with Home Innovations
decades of experience and knowledge of
both the code and testing sides of the
equation. Home Innovation (dba, Innovation Research Labs) will serve as a manufacturers guide and advocate through the
process, minimizing delays in test plan
development, approval, and implementation, resulting in high-quality evaluation
reports. The cooperation was developed
to benet manufacturers of all products in
the built environment, from innovative
building products, to more typical plumb-
ing, mechanical, fuel gas, and swimming

pool products.
For years, ICC-ES has offered highquality product evaluations that code ofcials trust, says International Code Council
CEO Dominic Sims. Now with product
testing available through this cooperation,
and the guidance of Innovation Research
Labs, ICC-ES clients will experience a
further reduction in time to market.
Michael Luzier, president and CEO of
Innovation Research Labs, says the joint
venture will enable building product
manufacturers to move innovative products into the marketplace more quickly
and efciently, allowing them to be more
responsive to the needs of builders and
developers, as well as increasingly discerning consumers.
While applicants remain free to use
the accredited test lab of their choice in
connection with evaluation reports and
product listings, ICC-ES encourages
applicants to take advantage of its new
relationship with Innovation Research
Labs. For more information, contact
Tom Kenney, Home Innovations vice
president of engineering and research, at
800.638.8556, ext. 6246.
NOW WITH PRODUCT TESTING AVAILABLE

THROUGH THIS COOPERATION, AND THE
GUIDANCE OF INNOVATION RESEARCH LABS,
ICC-ES CLIENTS WILL EXPERIENCE A FURTHER
REDUCTION IN TIME TO MARKET.
102 B U I L D E R
NAHB News
NEW DATA ON
FIRE SPRINKLERS
The International Code Councils
voting members once again will
consider an amendment to move
the requirement to install re
sprinkler systems in one- and
two-family homes from the main
body of the International Residential Codewhere it has been since
2009back to the appendix.
When a requirement is part of the main
body, its easier for states, counties,
and local jurisdiction to adopt it when
it comes time to update the building
codes. When its in the appendix, the
jurisdiction has to decide to amend the
model code to include the requirement.
A majority of states have decided
that installing the systems should be
an option, not a mandate, for home
buyers. Similarly, many home buyers
decide that the systems are not worth
the additional expense.
According to the NAHB Construction,
Codes and Standards Department,
44 states have rejected fire sprinkler
requirements. Two states, California
and Maryland, require them for all
new one- and two-family homes. Colorado, Delaware, Illinois, and Wyoming
have not chosen to pursue statewide
requirements, although Delaware
builders are required to give buyers
a cost estimate for sprinklers and
install them if the buyer wants.
NAHB agrees that fire sprinklers
should be an option, and its helped
HBAs create materials for builders
to offer that option to buyers.
Visit nahb.org for more information.
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NAHB NOTES
O C T O B ER 20 16
ECONOMY /
ROOM TO GROW
Job Support
For every 1,000 single-family
homes built, 2,970 jobs are
supported for a year
A look at the economic growth potential of residential construction

BY R O B E R T D I E T Z
Source: NAHB
he economy got off to a soft start in

2016. Growth rates for the rst quarter (0.8%) and the second quarter
(1.2%) were disappointing, and
NAHB has marked down its forecast for overall
growth in 2016 to 1.6%. This would make 2016
the weakest year since 2011. Economic activity
associated with investment has been weak for
the past three quarters, due to energy sector
declines and reduced business investment.
On the other hand, home building, remodeling, and apartment development are enterprises
that can give the economy a much needed boost
in momentum. Residential xed investment
(RFI), the home building component of gross
domestic product, has grown by an average rate
of more than 10% since 2012. And

theres room to grow.
As of June 2016, the RFI share
of the overall economy was 3.51%.
This is lower than the historical
average of roughly 5%. As home
building, and single-family construction in particular, recovers,
this share will expand. NAHB is
forecasting single-family starts to
total just under 800,000 for the
year. However, over the long run
the industry is expected to grow to
1.3 million starts per year, given
the housing needs associated with
population growth and replace-
Ro b e r t D i e t z
N A H B C h i ef
Ec o n o m i s t
HOME BUILDINGS ECONOMIC GROWTH POTENTIAL

RFI
Housing Services
20%
Housing Services: Average 12.5%
SHARE OF GDP
15%
10%
RFI: Average 5%
5%
0%
04
05
06
07
08
09
10
11
12
13
Source: NAHB calculations of Bureau of Economic Analysis data
104 B U I L D E R
14
15
16
ment of older housing stock.

As home building, and RFI,
increases, the housing contribution of GDP will also grow.
Housings share of GDP consists
of RFI and housing services,
which is the economic value produced by new and existing homes.
Keep in mind, at the start of the
year the combined value of the
nations owned-occupied and
vacation homes alone was $22.5
trillion. Consequently, as of June,
the housing service share of GDP
was 12.2%. Over time, that metric
is expected to expand to its historical average of 12.5%.
In total, the housing share of
GDP currently stands at 15.7%.
As single-family home building
and remodeling grow in the years
ahead, and multifamily maintains
its above-average levels of production, the housing share of the
economy is expected to rebound
to 17.5%. This will give a much
needed boost to an economy that
is lacking a solid growth driver.
That growth means jobs.
NAHB estimates that for every
1,000 single-family homes built,
2,970 jobs are supported for a year.
For every 1,000 apartments developed, 1,130 jobs are sustained.
And for every $100 million in
remodeling expenditures, 890 jobs
are generated in the economy.
These impacts are broad-based,
with about half of the jobs in
sectors outside of construction.
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47
22
40a-b
6
27
99
79
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45
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80
103
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105
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7
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80
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*Issue mailed in regional editions.

Advertisers: To update your listing, contact Jenni Morgan at 202-736-3461 or send an email to jmorgan@hanleywood.com
10 6 B U I L D E R
OCTOBER 2016
You just need the right skills and knowledge.

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AD Index
Advertiser
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SoftPlan Systems
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84
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Sterling Plumbing
The American Institute of Architects
The Home Depot
The Tapco Group/KLEER
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Typar
US Green Building Council (USGBC)
WCM Industries
Whirlpool
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ZIP System by Huber Engineered Woods
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65, 71
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67
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B U I L D E R 111
DATA DIVE
O C T O B ER 20 16
FRANK TALK /
NO FAIR DEAL ON THE TABLE

Neither political party offers a solid plan regarding affordable housing
BY F R A N K A N TO N
uring the Great Recession, housing was in the political

spotlight; it was seen as the major culprit behind the countrys
economic collapse. But there was a time, almost 70 years ago,
when housing was put in the limelight and there it stayed
for decades. It was put there by then-President Harry Truman, a liberal
Democrat, in his State of the Union address in January 1949. In the
speech Truman introduced his Fair Deal, which, among other things,
included substantially increased authorization for FHA mortgage
insurance and a proposal to fund almost 1 million public housing
units. The necessary legislation was sponsored by then-Sen. Robert
Taft, a most conservative Republican.
Tafts bill passed, ushering in about a three-decade-long period
during which the federal government played an activist role in housing.
You might say that period unofcially ended on June 18, 1981, when
President Ronald Reagan famously (or infamously) didnt recognize the
man he recently had appointed to be the Secretary of Housing and
Urban Development, which happens to be a cabinet position. Their paths
crossed at a national conference for U.S. mayors, they shook hands, and
the president said to Secretary Samuel Pierce, Hello , Mr. Mayor.
Which somehow brings us to today, when, it turns out, the situation
for low-income renters isnt terribly different than it was when Truman
introduced his Fair Deal by pointing out that, The housing shortage
continues to be acute. ... Five million families are still living in slums
and retraps. Three million families share their homes with others.
Today, according to the Joint Center for Housing Studies of Harvard
Universitys recently released The State of the Nations Housing
report, there are close to 20 million very low-income renter households who either sacrice other basic needs or settle for inadequate
living conditions. Someonly about one in fourof those receive
government assistance of some kind, and advocates for low-income
housing contend that for every 100 low-income housing renters there
are fewer than 50 affordable housing units available. So the problem
keeps getting worse.
Having reviewed the platforms of both political parties, I cant see
either a Republican or Democratic president presenting an aggressive
plan for trying to solve the current affordable rental housing problem.
The Democratic platform makes a vague promise about increasing
funding for the National Housing Trust to construct, preserve, and
rehabilitate millions of affordable housing rental units. The Republican platform ignores the issue but extols homeownership and says
the American Dream is not a stale slogan. It is the lived reality that
112 B U I L D E R
Fr a n k A n t o n
Vice Chairman,
H a n l ey Wo o d
Unit Shortage
For every 100 low-income housing
renters there are fewer than 50
affordable housing units available
expresses the aspirations of all our people.

So we have a vague promise and a platitude
to work with as the election draws near.
Which brings me back to Truman, who,
after promising federal action to address the
affordable housing shortage, went on to say
most of the houses we need will have to be
built by private enterprise, without public
subsidy. Then he added that the building
industry is producing too few rental units
and too large a proportion of high-priced
houses. If that sounds familiar, then it
seems that the onus for providing more
decent low-cost rental housing now rests on
the housing industry. Any volunteers? B
HAVING REVIEWED THE PL ATFORMS OF BOTH

POLITICAL PARTIES, I CAN'T SEE EITHER A
REPUBLICAN OR DEMOCR ATIC PRESIDENT
PRESENTING AN AGGRES SIVE PL AN FOR TRYING
TO SOLVE THE CURRENT AFFORDABLE RENTAL
HOUSING PROBLEM.
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