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Vogel Construction Services was honored last night at the MAX Awards gala for:
"The Best Remodeled Project" for 2010 by the Home Builders Association of Greater Austin.
We are honored to have been given this award when so many great remodeling projects were entered. Thank you to WF Designs for the designs and to the Burnett's for being such wonderful clients and giving us the opportunity to participate in making their dreams a reality.
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What is RRP? Renovation, Repair, and Painting (RRP), is a new federally mandated program to deal with the issue of lead paint in homes, primarily those homes built prior to 1978. The program takes effect April 22, 2010. It’s important that general contractors, real estate agents, plumbers, remodelers, handy-men, painters, property owners, carpenters, electricians, and all others who work in home repair or maintenance be aware of the rules and the requirements for compliance. Failure to do so can result in a fine of $37,500 per day, per violation!
The basic requirement is that work in homes containing lead paint which may include, but is not limited to, the replacement of windows or disturbing painted surfaces of more than six square feet inside a home or twenty square feet outside a home, be done by a Certified Renovator. And, it isn’t enough that a contractor be certified, the work must be continually supervised by someone who has taken a HUD approved training course. Additionally, spot testing for lead paint must now be done by a Certified Renovator.
There are exemptions for homeowners or tenants doing work on their own homes or rentals, but those doing such work, should be familiar with the guidelines to avoid creating future liability for themselves or danger for others. And while work not disturbing paint, such as merely applying an additional coat, isn’t covered by RRP, if sanding or otherwise disturbing the underlying surface is involved, compliance is required.
With an estimated 35 million homes in the U. S. containing lead paint, virtually all remodelers, builders, painters, property managers, and real estate agents will at some time encounter homes with lead-based paint. Therefore, it is critical that all those with the potential to have contact with homes containing lead-based paint familiarize themselves with both the necessary practices and requirements of the program.
While the EPA has produced a booklet, “Renovate Right,” to address the issues and requirements of the new program, real estate agents are still required to provide the EPA pamphlet, “Protect Your Family From Lead in Your Home,” as a part of the lead hazard disclosure in sales and leases. And those agents who are involved in property management or who recommend contractors, should be familiar with the new rules in order to confirm compliance with RRP.
The RRP rules are far-reaching, burdensome; and compliance will be costly and in many cases difficult. Additionally, EPA continues to make rule modifications. Those whose business involves homes that may contain lead paint should familiarize themselves with RRP and any changes that may be forthcoming. Failure to do so could not only be financially harmful, but could result in the potential for lawsuits which may be filed by anyone who is aware of non-compliance.
Disclaimer: The above information, while believed to be accurate, does not address all components of the new RRP rules. It is recommended that persons whose jobs require working with, marketing, or managing homes with lead-based paint, or who may otherwise be involved with any of the above mentioned issues, visit the EPA and HUD websites for more information.
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Central Texas Economy In Perspective
By Beverly Kerr, Chamber Vice President of Research
Recent reports from the U.S. Conference of Mayors and the Brookings Institution provide perspective on the relative pace of recovery among different metropolitan areas in this recession. And a new assessment of the state of the Texas economy from the Federal Reserve Bank of Dallas provides additional context for Austin.
The annual U.S. Metro Economies report from the U.S. Conference of Mayors provides a wealth of both historical and projected data on jobs, unemployment, and gross metropolitan product. Their projections include unemployment rates through 2013 and what quarter each metro will return to their former peak employment level.
As we’ve heard in numerous reports on the recession, job growth and reductions in unemployment will lag the return to economic growth that signals the end of the recession. Though Austin’s had a relatively moderate recession this time around, we know well from this region’s experience of the 2001 recession that the job market hangover can be prolonged.
The Mayors’ report, with data from Global Insight, gives the time frame for our return to peak employment as Q2 2010. Austin’s previous peak employment relative to this recession was Q4 2008, so regaining that within 6 quarters is considerably better than what is expected for almost all other metros. The prerecession peak for all U.S. metros, Q4 2007, will not be returned to until Q3 2012. In Austin’s experience of the 2001 recession, we peaked in Nov. 2000 with 690,300 jobs and did not see that total again until April of 2005—54 months or over 13 quarters.
Austin’s also had a better experience of the recession, relative to other metros, as measured by the unemployment rate. However, currently at 7.2% (NSA) or 7.0% (SA), unlike job growth/loss, this metric is higher than the rates seen here in the previous recession. Unemployment in Austin averaged 4.4% in 2008, but with projections in the Mayors’ report only going to 2013, we don’t know when Austin will again see rates that low. Rates appear to be projected to hover over 7% through 2011 and only drop to 6.1% by the end of 2013. In the last recession unemployment did not go above 6.7% here and only exceeded 5% for about 35 months. The unemployment rate is in uncommon territory statewide as well, at over 8%, its highest level in 22 years. The Mayors’ report projects the majority of U.S. metros will still have unemployment rates over 6% at the end of 2013.
The new Dallas Fed report of March 23 provides a broad ranging update and outlook, including how employment, unemployment and gross state product indicators in this recession compare to previous Texas recessions. The review indicates that job growth will return to positive territory, gaining 1%-2% in 2010, putting the state ahead of the nation again, but below the 2.8% pace seen historically. They also indicate that unemployment has probably peaked, but do not give any indications of the pace or magnitude of improvement that might be expected for this indicator for 2010 or beyond.
The Brookings Institution’s latest quarterly MetroMonitor tracks recession/recovery to date in the nation’s 100 largest metros, but does not provide projections. Austin has consistently placed in the best performing quartile through the recession. This quarter, the metropolitan profiles offer an interesting perspective on the initial 8 quarters of employment through the last four recessions.
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Consider some of the qualities that make professional remodelers the best choice for your home remodel:
1. Technical training and experience in home remodeling.
These remodelers have years of technical training and experience that cannot be equaled by do-it-yourself books or television programs. They understand a home’s structure, electrical wiring, plumbing and other details that must be considered before attempting a home remodel. Inexperience and ignorance can create costly mistakes, but professional remodelers can prevent disasters and solve unexpected problems.
2. Ability to creatively address budget and space constraints.
Most remodelers relish the chance to employ new design solutions to reorganize and maximize space in a home. This ability to work with a home owner on their remodeling dreams within a budget is a specialty of many remodelers. They can help propose alternatives that keep the budget in check, such as providing a variety of product choices or redesigning interior space to minimize the need for building home additions.
3. Information on tax credits and other ways to save money.
Remodelers can help you cash in on energy efficiency tax credits for saving on remodeling expenses. These credits offer money back on installing energy efficiency improvements such as new windows, doors, insulation, roofing, and more (see www.nahb.org/efficiencytaxcredit for more information). Remodelers may also know of additional local or state credits, rebates, and other methods of saving money on your home remodel.
4. Commitment to excellent customer service.
A professional remodeler has solid business skills and understands that remodeling is about providing excellent customer service. These remodelers will take meetings and return phone calls to address customer concerns proactively. They prioritize customer satisfaction and take pride in their remodeling work.
5. Professional references and work samples.
Professional remodelers are more likely to belong to trade associations (such as the National Association of Home Builders) where they benefit from education programs, acquiring knowledge and skills to run a better business and improve their home remodeling services. A remodeler in good standing can also provide references from past clients. They also can show examples of previous remodeling projects to give you a feel of the quality and style of their work.
Make the smartest investment in your home by hiring a professional remodeler. They’ll help you stay on budget, solve remodeling challenges, and provide a higher-quality service.
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Here are five tips for planning a successful home remodel that you can enjoy for many years to come.
1. Compile a list of home remodeling ideas and draft a budget for the work.
You likely have some projects in mind, such as modernizing the bathroom, renovating the kitchen, replacing windows or repairing the roof. Prioritize your wish list: Maybe you don’t have the budget for your dream remodel, but professional remodelers can maximize your dollars by doing the work in phases, suggesting budget-friendly products and materials, and implementing creative design solutions.
2. Look for a professional remodeler to help plan the project.
Start by searching NAHB’s Directory of Professional Remodelers at www.nahb.org.remodel. You’ll get a list of nearby remodelers to contact. Asking friends and neighbors for names of qualified remodelers will also help you find a match for your project.
3. Check the references and background of the remodeler.
After you start speaking with remodelers and find one or two who match your project’s needs, be sure to conduct some background research by checking with the Better Business Bureau, talking to their references, and asking if they are a trade association member (such as NAHB Remodelers). Remodelers with these qualities tend to be more reliable, better educated, and more likely to stay on top of construction and design trends.
4. Agree on a contract.
Talk over the details of the home remodeling project and begin reviewing the contract. You’ll want to check the remodelers’ insurance coverage, ask about any warranties on their work, know who is responsible for obtaining any building permits, and understand the process for making any change orders after the contract is signed. Make sure that you and your remodeler see eye to eye before you sign on the dotted line.
5. Take advantage of the energy efficiency tax credits.
If your remodel includes replacing windows or doors, adding insulation, installing new roofing, upgrading heating or air-conditioning units, updating the water heater, or installing energy generating products (such as solar panels, heat pumps, or wind turbines) then you can take advantage of federal energy efficiency tax credits through 2010 that will help defray costs and maximize your remodeling budget while reducing home energy bills. (Learn more at www.nahb.org/efficiencytaxcredit.)
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AUSTIN CITY COUNCIL APPROVES HERITAGE TREE ORDINANCE
The Austin City Council unanimously approved the staff recommendation of the heritage tree ordinance on all three readings on Thursday, February 4, 2010, making it more difficult to remove certain trees 24" or greater in diameter. Trees larger than 24" but smaller than 30" will require an administrative variance prior to removal, and trees larger than 30" will require a land-use commission public hearing before a variance is granted.
RECA came out in opposition to the public hearing component of the ordinance. Despite RECA's testimony and strong showing at City Hall, Council kept the public hearing process in the ordinance. Council Members amended the ordinance with the following changes:
· Include a tree list in the ordinance that will be subject to future modifications by rule, if necessary. RECA advocated for the inclusion of a tree list in the ordinance.
· Grant flexibility in the heritage tree variance language by allowing for exceptions if the removal of that tree will result in "a design that will allow for the maximum provision of ecological service, historic, and cultural value from the tree." RECA advocated for more flexible removal criteria.
· Require monthly reporting from the City Arborist to the Urban Forestry Board on tree removals between 24" and 30" instead of public hearings for those trees. RECA advocated against public hearings for those trees.
· Allow for multi-stem measurements. However, a public hearing would only be required for trees with at least one stem greater than 30". RECA opposed multi-stem measurements, but this amendment will not increase the number of public hearings.
· Remove certain exemptions for electric utilities. RECA was neutral on this aspect of the ordinance.
The final point of contention was the standard of removal for protected trees. City staff and RECA encouraged Council to keep that standard as denying "a reasonable use" of one's property to allow for removal. Tree advocates asked for the denial of "all reasonable uses" before a tree could be removed. Council agreed with the RECA position.
It is also important to note that Council moved forward with the staff recommended version of the ordinance as opposed to Planning Commission's version. Tree advocates testified in favor of the Planning Commission's version, which would have been more onerous towards property owners.
The heritage tree ordinance will now be subject to a rules process to determine mitigation rates for heritage trees, potential stiffer penalties for illegal removal of trees, and how to interpret the following removal criteria: "a design that will allow for the maximum provision of ecological service, historic, and cultural value from the tree." RECA will be engaged in this rules process.
RECA has been involved in this issue for several years now, and special thanks goes out to Jeff Howard, Peter Cesaro, Paul Linehan, Aan Coleman, Keith Donahoe, and Jim Schissler for all of their hard work in advocating on behalf of RECA during this process. Without them, this ordinance would have been worse. Special thanks also to Board Members and the entire LDC class for showing up at City Hall to support the RECA members who testified at Thursday's public hearing.
A More Detailed Article is available at RECA Online: http://recaonline.com/docs/arc/arc2009/TreeOrdinance.html
More information regarding Trees in Austin and the role of Austin Energy is available at: http://www.ci.austin.tx.us/trees/
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Ben Kogut with Grubb & Ellis provides an excellent observation regarding steady growth vs. unsupportable bubbles. I would add the following: when you read statements about it taking a decade to recover you have to first ask “recover from what”. Clearly Austin will not take a decade to recover where we have had less than a 3% drop in home prices from their peak and had a net loss of jobs last year of .3 % (2,600 jobs.) However, if we are talking about how long it will take for a bubble market to “recover” or return to its peak prices, then I would agree it will take a while – it will take the amount it takes for normal inflation of salaries to finally support that peak level of home prices. Put another way, median home price cannot exceed 3 (or maybe 4) times the median family income. In some bubble markets, median home prices exceeded the median family incomes by a factor of 8 or even more in the most hyper-inflated markets. By comparison, the US Census Bureau shows Austin’s median family income for 2008 to be $64,311. Per ABOR, the 2008 median home price was $187,233 for a factor of 2.91.
Austin is well situated to recover quickly from this recession.
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