Builder - January 2009 - (Page 36) INSIDE STORY plan to Orleans’ board for approval. (9 percent of this $30-million-plus devel- redevelopment approach in favor of a OKKS launched with about $500 mil- opment) to the community. master plan that required the Housing lion in capitalization. But Schurr soon saw It discarded the city’s scattered-lot Authority and other landowners to relinopportunities to put together fiquish real estate. OKKS took nancing for for-sale projects that nearly three years to assemble would require minimal direct inland for the remaining 151 units it vestment by the new company. Its would build; and in late 2006, it first deal was a pilot program HUD started its fi rst 64 homes, semihad started six years earlier. The detached townhouses averaging city of Philadelphia’s involvement 1,700 square feet. Those homes, in constructing the first 149 units of which sold out in less than six the Cecil B. Moore project ended in months, were priced at $82,500 federal indictments for misapproand included a $155,000 soft secpriation of funds. Once OKKS enond mortgage provided by the tered the picture, “very little” of city. As long as the home remains HUD’s $10 million grant was left, owner-occupied, that second recalls Schurr. mortgage self-extinguishes at the OKKS’s bid won over six other end of 15 years. developers’, partly because of its Last October, OKKS broke partners’ reputations, and partly GIVING BACK: OKKS is returning 25 percent of its develop- ground on the 54 units in phase II, because of its willingness to return er’s fee to the community and is building 10 percent of its homes which sell for $110,000 and also (see page 38) 25 percent of its developer’s fee handicapped-accessible. provide ASSOCIATION ASSISTANCE D HBAs. Membership at the the national association in Washington, HBA of Illinois, which which has enhanced its member services peaked at 4,900 in Janu- to include more survival toolkits and ary 2007, had declined to seminars. The NAHB typically works 3,800 in November 2008, behind the scenes on behalf of builders, HBAs work harder to help says executive vice presi- but sometimes its presence is more dent William Ward. The overt. Last May, it sent president and (and hold onto) builder members. HBA of Florida saw its CEO Jerry Howard and executive vice irectors on the Rhode Island builder membership drop 19.7 percent to president of advocacy Bill Kilmer to Builders Association’s board have 6,847 from the end of 2007 through late meet with the editorial board of Clevehad numerous discussions about November 2008; its associate member- land’s The Plain Dealer at the behest of how their group can improve the ship also fell 16.7 percent to 9,415. Paul the HBA of Greater Cleveland. “We plight of local builders. But the scope of Thompson, the HBA’s CEO, budgeted came out of that meeting with The Plain any idea is limited by revenue shortfalls 2009 based on the group having 11,000 Dealer agreeing to contact the HBA on caused by the housing recession. “We’re total members, although he doubts the any future stories,” says executive direcdown, since ’05, 120 members [to 1,380],” dropoff will be that steep. tor Joe Race. says executive director Roger Warren. The NAHB is now urging builder The New York State Builders Asso“Revenue from our home show and health ciation, which generates more than half members with more time on their hands insurance program is down, too.” of its revenue from services, is emphasiz- to concentrate on professional developMarket conditions are forcing HBAs ing membership benefits. For to justify their existence by highlighting example, its manufacturer re- “Builders need us more than the value of their educational programs, bate program returns, on aver- ever.”—Irene Porter, executheir advocacy, and the information on age, $250 per quarter to builders. housing trends they impart. “We focus The group helped create a green tive director, Southern on local, county, and state issues for the building mortgage program and Nevada HBA builders, including big companies that was instrumental in rejuvenathave laid off so many people that they ing the state’s vacant lot tax abatement ment through their HBAs. “We want to need us more than ever,” asserts Irene program. “We are reminding members help them do their jobs better,” says LorPorter, executive director of the South- of the tax benefits they may have forgot- raine Urey, director of member services ern Nevada HBA in Las Vegas. ten,” says executive vice president Phil for the Texas Association of Builders, Doing more with less has become the LaRocque. whose recent trade show included semistandard mode of operation for many State and local HBAs take cues from nars on that topic.—J.C. Accentuating the Positive Courtesy okks development 36 ■ B U I LD E R ja n ua ry 2 0 0 9 W W W.BUILDERONLINE.COM http://WWW.BUILDERONLINE.COM
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