May 2013 BBAM Magazine - HBA of Southeastern Michigan

Executive OfficertCommentsIncreased Residential ConstructionTime To Begin Thinking About The Brave New World Of CondosMICHAEL C. STOSKOPF, EXECUTIVE OFFICERTwo weeks agowe producedour monthlySoutheastern MichiganResidential BuildingActivity Report TM forMarch 2013 and, inshort, the start to 2013is nothing short of ourbest first quarter since 2006!From a trailing 12-month perspective, the4-county total of 3,973 permits is 47 percenthigher than March 2012 (2,703) and the highestlevel since August 2007 (4,055). Oakland Countyagain led the way with 152 single-family homepermits issued. Macomb County had 134 andWayne County had 80. An exciting componentof the Wayne County total is that 40 singlefamilyhome permits were issued in the City ofDetroit. This brings the total number of permitsissued in Detroit to 124 for 2013, compared tojust two during the first quarter of 2012.Average permit values, particularly in Oaklandand Macomb counties, are showing relativelystrong growth compared to the same time in2012. Overall, the average value of permits for the4-county region improved by just over one percentto $221,924. However, Oakland County averagepermit values ($234,033) rose by 8 percent whencompared to March 2012. While the average value($239,112) in Macomb County rose by nearly 7percent when compared to last year.Within the City of Detroit, average permitSponsored By:New Housing Permit Forecastvalues in the first quarter of 2013 ($109,774)rose by a remarkable 57 percent comparedto the first quarter of 2012. In the remainderof Wayne County, the average permit vales($261,300) also saw gains in March, climbingby 10 percent compared to March 2012.Maybe the most exciting news in March isthat foreclosure inventory in the 4-countyarea, as reported by RealtyTrac, has fallento its lowestlevel since early2007.Interestingly,along withincreased singlefamilyhomeconstructionactivity,attachedcondominiumprojects arebeginning totake significanthold again inBuilders Supply CompanyCabinet Corporationasabuilderssupply.comthis area. According to SEMCOG permit data,420 permits for attached condo units wereissued in 2011 and 421 in 2012. Prior to this,you’d have to go back to 2007 to see similaractivity since, during the housing downturn,attached condominium construction activitynearly disappeared.Recognizing that it may have been awhile since our members have exploredcondominium projects, HBA is holding aBuilders Roundtable on May 14th on “TheBrave New World of Condos.” This eventis being sponsored by Wells Fargo HomeMortgage and will discuss financing, managementand legal considerations that apply following therestructuring of Fannie Mae and HUD.Our speakers include Charity Moreland ofWells Fargo Home Mortgage, Gar Liebler ofLandArc Companies and H. William Freeman ofWard, Asher & Patton, P.C.If you are a builder or developer, pleasemake plans to attend this event. Registeronline at builders.org/events.php or bycalling 248-862-1002. See ad on page 9. n4 BUILDING Business & Apartment Management x May 2013

AdvertorialHighly Trained Dogs Aid In Fight Against Bed BugsWRITTEN BY NANCY ROZUMtTheir names areMagnum, Ruby andHutch. Magnum isa two-year-old goldenretriever. Ruby and Hutchare labrador retrievers.They may seem just like any other family dogs inAmerica, but with one important distinction. Theirkeen sense of smell and specialized trainingmake them one of Eradico Services’ mostefficient weapons in the war against bed bugs.Research conducted by the University of Floridarevealed that well-trained dogs, like Magnum, Rubyand Hutch, can detect a single live bed bug or bedbug egg with 96 percent accuracy.Bed bugs are a growing menace in not justapartment communities and residential homes,but also to commercial businesses such as officebuildings, medical buildings, and schools. Theresurgence of bed bugs in the U.S. in recent yearsis thought to be due to increased international traveland tighter environmental regulations on pesticides.It is a popular myth that bed bugs are causedby poor hygiene or bad housekeeping. In reality,anyone can be a carrier, moving bed bugs fromone location to the next on their clothing, luggage,bedding and furniture.Bed bugs feed on warm-blooded animals, suchas humans. They hide in cracks and crevicesduring the day and come out at night to feed. Theyare small and hard to see, with adult bed bugsapproximately 4-7 mm long or the size of an appleseed, and eggs being about 1 mm, or smaller thana piece of rice. Adults are gray or brown in color,but turn red after finishing a blood meal. Theycan survive months between meals. Bed bugsare not known to spread disease, but the bitesoften cause small itchy red bumps on the skin.“Bed bugs create a lot of anxiety and stress,” saysBob England with Eradico Services. “People canget infections from scratching the bites, althoughabout 30 percent of people have no visual signsthat they were bitten.”The small size of the bugs, combined with thefact that they hide during the day and people oftendon’t realize they have been bitten, as well as theease of transferring the bugs from one locationto another are all factors which contribute tomaking bed bugs difficult to detect and eradicate.“Education, early detection and effective treatmentare key,” says Bob. “If the pest control operator, theproperty manager and the resident are doing theirjobs, we don’t have failures.”The dogs are very effective on the earlydetection front, which is why Eradico’s first caninewas named after Tom Selleck’s character on thepopular 1980s television show about a privateinvestigator who always ferreted out the bad guys.“Our first dog, Magnum, was certified as a bedbug detector in May of 2011,” says Bob. “Sincethen, the need has been growing and growing, tothe point that we now have three K-9 teams. Theteams do a ton of apartment communities, officebuildings, schools, nursing homes, jails, librariesand other buildings on a scheduled basis. We havefound that apartment residents appreciate that thedogs are inspecting on a regular basis because itshows that the property managers are proactive. Itgives residents a sense of security.” Early detectionalso saves money because it minimizes the amountof treatment that must be done when a bed buginfestation has gone undetected and has spread.The process of building a K-9 team begins withfinding a dog with the right work ethic. “We hireprofessionals who can best judge which dogs willwork best for our program,” says Bob. “The dogshave to have plenty of energy and a willingnessto work.” Each dog is matched with an Eradicoemployee, who becomes the official handler of thedog. The handlers are carefully selected, usuallythrough referrals from dog trainers, and generallyhave past experience either showing dogs ortraining dogs. The dog and handler live, work andtrain together. Ultimately the dog and handler mustachieve an independent certification, which atteststo their skill. But their education doesn’t stop there.“Eradico’s goal is to have the best K-9 inspectionteams in the market,” says Bob. “That is why wehave hired an independent, third-party expert toobserve our program.” That is also why, after theteam’s initial training, they continually train twicea month. Understanding each dog’s stamina andcapability is also important. “We want our dogsat peak performance, so we make sure they getappropriate amounts of rest between jobs,” saysBob. “There is considerable mental strain for thedogs as they process scent odors.”When a dog alerts on the scent of bed bugs,Eradico works with the customer to determinethe best approach to eliminating the problem.“With the dogs’ assistance and changes in ourtreatment methods in the past several years,we can now do localized, or spot treating, onthe area of infestation,” says Bob. “In an officebuilding, for example, we may treat just onecubicle. In an apartment building we don’t needto treat all adjacent apartments as in the past.We would bring a dog in to check the adjacentapartments, which takes just a couple of minutes,and if the dogs don’t find evidence of bedbugs,we generally just schedule a follow-up visit tomonitor the situation.”Eradico offers several options for treating bedbug infestations. Besides chemical treatment, heattreatment has been shown to be very effective.“Bed bugs, in all stages of their life cycle, die inone minute when exposed to temperatures of120 degrees or above,” says Bob. Using high techequipment including heaters, fans and computermonitoring, Eradico technicians can treat a wholebed bug infested home or apartment in 8 to10 hours. “We can get heat in where chemicaltreatments can’t go,” says Bob.Bed bugs aren’t going away any time soon.Even stores of major retail chains have reportedinfestations in recent years. That’s why educationabout bed bugs and regular inspections to detectproblems before they become major infestationsare so important. “Virtually anywhere you goyou can pick up bed bugs,” says Bob, as partof the bed bug presentation he does free-ofchargeto clients of Eradico Services. “You don’tcreate an environment for bed bugs. You are theenvironment.” But, with new advances in the fight,such as the K-9 teams at Eradico and their hightechheat treating system, people can have a goodnight, with confidence that they don’t have to worryabout a bed bug’s bite. nBUILDING Business & Apartment Management x May 20135

Apartment Association of MichigantProperty Management Council NewsPreventing “Falls From Elevations” In Your WorkplaceWRITTEN BY GARY SMITH, APARTMENT BUILDING MANAGEMENT WORKERS COMPENSATION SELF INSURED FUNDDo employees or contractors you hireperform work at elevations usingladders, scaffolds, or lifts? Do theyclean gutters, trim trees, perform minor roofingrepairs, change lighting, paint at heights, etc.?If so, then the preventive measures taken cangreatly reduce their chance of a fatal injury.BackgroundBefore discussing methods of preventing“falls from elevations,” let’s put the issueinto context with a focus on the revised 2011workplace fatality data from The Bureau ofLabor Statistics (BLS), which report that 4,609workers were killed on the job.• Fatal falls, slips, or trips took the livesof 666 workers in 2011, or about 14percent of all fatal work injuries. Falls to“lower level” accounted for 541 of thosefatalities.• The height of the fall was reported in451 of the 541 fatal falls from elevation.Of those 451 fatal cases, 115 occurredafter a fall of 10 feet or less, 118occurred from a fall of over 30 feet, 38occurred after a fall from a collapsingstructure or equipment and 60 occurredfrom a fall through a surface or existingopening (e.g., skylights, hatches, etc.).In the state of Michigan during a fiveyearperiod from 2006 to 2010, fallsaccounted for 22 percent of the more than181 workplace fatalities investigated byMIOSHA. In construction, the number is evenhigher at 29 percent of fatalities investigated.Additionally, within the last three years,MIOSHA and OSHA have reported that fallprotection and scaffolding violations are the toptwo cited. Ladder violations range from #5 to#9 within the ranking of most cited violations.Both agencies continue to dedicate a greaterdegree of enforcement and training focus inthese areas.Real-Life Examples• A 43-year-old carpenter was working on aladder that barely reached the roof edge.The base of the ladder slipped away in theice and snow, causing the employee to fall8 feet.• A 33-year-old laborer was working nearthe edge of a roof. When he pulled on anelectrical cord to power a screw gun, helost his balance and fell off the roof 28 feetto the ground below.• A 46-year-old landscaping employeestringing decorative lights climbed a treeto about 30 feet above the ground. Theemployee fell from the tree and died 18days later from multiple injuries.Preventing FallsThe following preventive practices, while notexhaustive, provide the fundamental basis foran effective program:• Understand if the work being performedis considered construction or service, andwhich safety standards apply. See below thelist of safety standards that will likely apply.• Conduct a job hazard analysis (JHA) todetermine the safest way to do the job andselect the right tools and equipment.• Conduct safetytraining.• Use guardrailsystems, safety netsystems, personal fallarrest systems, or appropriate restraintswhen exposed to a fall hazard.• Place guardrails around skylights andplace solid covers on roof openings.• Cover or guard floor holes or openingsimmediately.• Survey existing structures to ensuresurfaces are safe to walk on.• Ensure ladders are appropriate and longenough to do the job. Secure ladders at thetop whenever possible. Do not stand onthe top two steps.• Inspect equipment before use and do notuse when damaged or defective.• Follow safety rules and instructions.• Look out for co-workers and tell themwhen you see something unsafe.• Select qualified contractors and vendorsthat ensure their employees work safely.MIOSHA Standards That Apply to FallPrevention can be found at:www.michigan.gov/mioshastandardsConstructionPart 6, Personal Protective EquipmentPart 12, Scaffolds & Scaffold PlatformsPart 21, Guarding of Walking & WorkingSurfacesPart 26, Steel ErectionPart 32, Aerial Work PlatformsPart 45, Fall ProtectionGeneral IndustryPart 2, Floor & Wall Openings, Stairways &SkylightsPart 5, ScaffoldingPart 33, Personal Protective EquipmentPart 53, Tree Trimming & RemovalPart 58, Vehicle Mounted Elevating PlatformsShould you require assistance with preventingfalls, e.g., determining applicability, completingJHAs, conducting employee training, etc., pleasecontact Gary Smith, CRM, at (517) 338-3367 orGary.Smith@cmi-yorkrsg.com. n6 BUILDING Business & Apartment Management x May 2013

Apartment Association of MichigantAdvocacy UpdateWRITTEN BY FORREST WALL, CAE, STAFF VICE PRESIDENTAND INDUSTRY RELATIONSApartment Inspection Reform LegislationIntroducedAAM’s legislation to help reform themultifamily rental property inspection provisionsof the Housing Law of Michigan has beenintroduced in the Michigan Senate. Senate Bill313, sponsored by Senator David Robertson(R-26th District) at the request of AAM,addresses numerous problems apartmentowners are currently encountering with localinspection programs. The legislation has thefollowing four primary components:• Limits on Inspection Fees – The statute’scurrent language requiring inspectionfees “not exceed the actual, reasonablecost of providing the inspection” is toonebulous. Wide disparities are seen in thefees charged by communities, with somemunicipalities clearly viewing apartmentinspection programs as a revenueopportunity. AAM proposes to limit the feethat may be charged by a local governmentto no more than $40 per unit or no morethan $75 per building. The first reinspectionwould be included in the charge.• Reform Inspection Timeframes –Municipalities covered by this act arecurrently required to inspect multifamilyrental properties at least once every fouryears, with the option of enacting anordinance to increase the timeframe tono longer than 6 years. AAM proposes toamend these provisions to increase thetimeframe between inspections to 6-10years. By extending the time requiredbetween inspection cycles, the localgovernment is given more flexibility toProperty Management Council Newsspread out the program costs while stillbeing able to issue inspections at any timebased upon complaint. Furthermore, thiswill help to limit the intrusion on residents.• Limits on Registration Fees – Somelocal governments are requiring significantregistration fees on a per unit or perbuilding basis in conjunction with theirinspection cycle (usually every 2-3 years).These fees bear no relation to the expensethe local government incurs – which isvirtually nothing – to keep the registrationon file, nor do the way fees are structured(per unit/per building) relate to theinformation collected (general propertyinformation). AAM is proposing to limitwhat the local enforcing agency maycharge to no more than $100 per owner,and allow that charge to cover the propertyas long as there is no ownership change.• Application of Law to Townships – Thescope of the act relating to multifamilyrental housing currently does not includemost townships. The proposed legislationupdates this to include townships so theyare governed in the same way as cities andvillages.AAM thanks Sen. Robertson for his leadershipin sponsoring this bill.Enforcement of New DOE Furnace StandardDelayedEnforcement of a controversial U.S.Department of Energy (DOE) standard whichmandates the use of 90 percent annual fuelutilization efficiency (AFUE) for non-weatherizedgas furnaces in the northern region (includingMichigan) has been delayed indefinitely. Therule was scheduled to takeeffect May 1, 2013, butdue to a proposed lawsuitsettlement DOE issued the delay notice. In 2011the American Public Gas Association filed alawsuit challenging the process DOE followedfor the rule, and earlier this year a settlementagreement was submitted to the court, whereapproval is pending. nThank You RenewingAAM & HBA MembersAPARTMENT ASSOCIATION OF MICHIGANCOUNTRY CORNER APARTMENTSMADDIN, HAUSER, WARTELL ROTH & HELLER, PCROCHESTER LUDLOW / MARINA BAYUNILAND CORPHOME BUILDERS ASSOCIATIONCAMBRIDGE HOMES, INCDAKOTA HIGH SCHOOLERADICO PEST CONTROLGUIDOBONO BUILDINGHANSEN MARKETING SERVICES, INCJ.W. FIELD GRADING & EXCAVATINGJDM BUILDING CO, LLCKAFTAN ENTERPRISES, INCKURTIS KITCHEN & BATHM. J. CHIRCO DEVELOPMENT CO., INCMAC CONSTRUCTION INCMIDWESTERN DENTAL PROGRAMNEWMYER DISTINCTIVE REMODELINGORGANIZE-ITPROFESSIONAL WARRANTY CORP.RAY LIGHTING CENTERSRICHARD L. KOMER & ASSOCIATESS R JACOBSON COMPANIESSCHLOTTMAN & WAGNER, PCSOAVE PROPERTIES INCSTANDARD HOME BUILDERSSTATEWIDE DISASTER RESTORATIONTEMPLETON BUILDING CO.TLA INTERIORS, INCU.S. BANK HOME MORTGAGEVSL CONSTRUCTION, INCWEST CONSTRUCTION SERVICESWRIGHT & FILIPPISClassified AdvertisingASA Builders Supply Co.& Cabinet CorporationExceptional Quality and Exceptional Value.Special Pricing For HBA Members.Call 248-624-7400asabuilderssupply.comBUILDING Business & Apartment Management x May 20137

News & EventsEVENTS ARE HELD AT ASSOCIATION OFFICES UNLESS OTHERWISE NOTED.2075 WALNUT LAKE RD , WEST BLOOMFIELD 48323THERE IS NO CHARGE UNLESS OTHERWISE NOTED.WEDNESDAY, MAY 8AAM Events CommitteeTime: 9:00 a.m.THURSDAY, MAY 9AAM Water Billing CommitteeTime: 9:00 a.m.FRIDAY, MAY 10HBA Executive CommitteeTime: 9:00 a.m.TUESDAY, MAY 14HomeAid Southeastern MI BoardTime: 9:00 a.m.TUESDAY, MAY 14Builders RoundtableBrave New World of CondosTime: 12:30 p.m.SEE NEXT PAGE FOR DETAILS!WEDNESDAY, MAY 22Membership CouncilTime: 9:00 a.m.WEDNESDAY, MAY 22PWB Executive CommitteeTime: 10:30 a.m.WEDNESDAY, MAY 22PROFESSIONAL WOMEN IN BUILDINGCOUNCIL & NAHBR Professional RemodelersCouncil JoInt SeminarBeers, Blogs & BusinessTime: 11:45 a.m. - 2:00 p.m.Cost: $10/Person including lunchSEE OUTSIDE BACK COVER FOR DETAILS!JUNE 1 - 30Parade of Homeswww.ParadeHBA.comColeman A. Young Municipal Center2 Woodward Avenue, Suite 408Detroit 48226If you would like to pose a question anonymouslyfor the building official to address, please email inadvance of this meeting to: forrestw@builders.org.TUESDAY, JUNE 11ABMWCSIF TrusteesTime: 8:00 a.m.WEDNESDAY, JUNE 12AAM Breakfast ClubTime 8:30 a.m.Cost: No charge for Members; $10/GuestTHURSDAY, JUNE 13After Hours MixerA Unique Networking OpportunityTHURSDAY, MAY 16Rochester Hills Builder/Remodeler ForumTime: 9:00 a.m.Place: Bolyard Lumber3770 S. Rochester Rd., Rochester HillsIf you would like to pose a question anonymouslyfor the building official to address, please email inadvance of this meeting to: forrestw@builders.org.TUESDAY, MAY 21Fair Housing For YourEntire On-Site TeamKATHLEEN MABIE, SUCCESS ON SITE• Who spends the most amount of time withthe residents and receives the least amountof training? MAINTENANCE• The on-site property and regional managerhas a lot of hats to wear! MANAGEMENT &COMMUNICATION• Who lives here? LEASING POLICIESTime: 9:00 a.m. - NoonCost: $55/Member; $65/Guest• Pest Control Services• Lawn, Tree & Shrub Care• Holiday Lighting(888) 479-5900Serving Others by Protecting and EnhancingTheir Lives and Propertywww.eradicoservices.comJUNE 4 - 8NAHB Spring Board andLegislative ConferenceWashington, D.C. www.nahb.orgWEDNESDAY, JUNE 5NAHBR Professional RemodelersExecutive CommitteeTime: 11:00 a.m.WEDNESDAY, JUNE 5NAHBR ProfessionalRemodelers RoundtableWorking With SubsTime: NoonCost: $10/Person including lunchTHURSDAY, JUNE 6City of DetroitBuilder/Remodeler ForumTime: 10:00 a.m.Place: Coleman Young BuildingBuildings & Safety Engineering Dept.REGISTER ONLINEFOR THESEEVENTS ATWWW.BUILDERS.ORG/EVENTS.PHPOR EMAIL:RIVAG@BUILDERS.ORGOR CALL:248-862-1002Win great prizes! Appetizers, Wine,Beer and Soft Drinks. Bring prospectivemembers to the event!Time: 6:00–8:00 p.m.Place: Designer Interiors2665 Nakota Rd, Royal Oak 48073Cost: No Charge but advance reservationsare required by June 6. No Shows Billed $10THREE CHANCES TO WIN!Must Be Present To WinBuilder & Remodeler - $800.Associate - $800. Attendee - $50.MONDAY, JUNE 17AAM Officers MeetingTime: 9:30 a.m.FRIDAY, JUNE 21HBA Board of DirectorsTime: 9:00 a.m.Sponsored by: Brown & BrownInsurance and FrankenmuthTUESDAY, JUNE 25Mid-Year Economic Forecast& State of the Industry BreakfastSEE NEXT PAGE FOR DETAILS!WEDNESDAY, JUNE 26Membership CouncilTime: 9:00 a.m.Join HBA Online:www.builders.org/join/Or 248-862-1002Ask About Our Monthly Payment Plan8 BUILDING Business & Apartment Management x May 2013

Grow Your Business In May & JuneNETWORKING • INDUSTRY INFORMATION • MARKETINGBUILDERS ROUNDTABLE — For Builders, Remodelers & SuppliersTuesday, May 14 from 12:30 - 2 p.m.Association Offices • $10/person • Includes LunchTHE BRAVE NEW WORLD OF CONDOSFinancing, Management & MoreCharity MorelandRegional Builder Sales Manager, Wells Fargo Home MortgageGar LieblerCEO, LandArc CompaniesH. William FreemanReal Estate Attorney, Sullivan, Ward, Asher & Patton, P.C.HOW TO GET WARRANTED THROUGH FANNIE MAE ANDHUD SO DEVELOPERS CAN OFFER CONVENTIONAL ANDFHA FINANCING • MANAGEMENT ISSUES • LEGAL NEWSSponsored byCONSTRUCTION ASSOCIATION OF MICHIGAN AND HBA OF SOUTHEASTERN MICHIGANTuesday, June 25 from 7:30 - 10:30 a.m.Best Western Sterling Inn • 34911 Van Dyke Ave • Sterling Heights, MI 48312MID-YEAR ECONOMIC FORECASTAnd State Of The Industry Breakfast7:30 - 9 A.M. EXHIBITS & RECEPTION9 - 10:30 A.M. BREAKFAST & PROGRAMDavid G. Sowerby, CFALoomis, Sayles & CompanyW. Jay WortleyDirector, Office of Revenue and Tax AnalysisState of Michigan300+EXPECTEDATTENDANCEFOR ALL EVENTS PLEASE REGISTER ONLINEAT BUILDERS.ORG/EVENTS.PHP Or call Riva Gulli at: 248-862-1002BUILDING Business & Apartment Management x May 20139

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Remember the Social Media Martini?We’re back with . . .BEERS, BLOGS & BUSINESSIntegrating social media strategy with traditional communicationsWednesday, May 2211:45 a.m. - 2 p.m.Networking • Lunch • Seminar• Build brand awareness• Create new customer relationships• Grow your businessA Joint Meeting of HBA’sPROFESSIONAL WOMEN IN BUILDING& NAHBR PROFESSIONAL REMODELERS COUNCILSAll HBA Members & Guests Encouraged To Attend!AndreaPecoraroSocial Media StrategistIndentity Marketing &Public RelationsHeld At Association Offices • $10/Person • Includes LunchPLEASE REGISTER ONLINE AT BUILDERS.ORG/EVENTS.PHPOr call Riva Gulli at: 248-862-100212 BUILDING Business & Apartment Management x May 2013