2009-2010 Home Buyer Federal Tax Credit

Who is Eligible

• First-time home buyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for a tax credit of 10% of the home purchase price, up to a maximum of $8,000.
• Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for a tax credit of 10% of the home purchase price, up to a maximum of $6,500.
• All U.S. citizens who file taxes are eligible to participate in the program.
Income Limits
• Home buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
• For married couples filing a joint return, the combined income limit is $225,000.
• Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
• The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.

Effective Dates

• The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.

Types of Homes that Qualify

• All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.

Tax Credit is Refundable

• A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
• For example:
o A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 tax credit).
o A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 tax credit).
• All qualified home buyers can take the tax credit on their 2009 or 2010 income tax return.

Payback Provisions

• The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

For more information, go to: www.federalhousingtaxcredit.com

Home Buyer Tax Credit, New NOL Rules Signed Into Law

In a major victory for NAHB that will boost the fledgling housing recovery and help struggling business owners nationwide, Congress last week approved legislation that will extend the first-time home buyer tax credit beyond its Nov. 30 deadline and expand it to a wider group of home buyers. The bill also provides relief to cash-strapped home builders by providing broader tax benefits for businesses with net operating losses (NOLs).

The legislation, which was signed into law by President Obama on Nov. 6, will extend the $8,000 credit for first-time home buyers for sales contracts entered into by April 30, 2010 and closed on by June 30. It has been expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new principal residence. Existing home owners can claim the $6,500 tax credit if they have been residing in their principal residence for five consecutive years out of the last eight.

In more good news, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised from $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return to $125,000 for individuals and $225,000 for married couples.

NAHB’s consumer-oriented Web site, www.FederalHousingTaxCredit.com, provides complete details on the enhanced home buyer tax credit.

CPS Energy New Construction Rebates for 2010

Due to recent changes by the City of San Antonio regarding building code requirements for 2010, CPS Energy will no longer award rebates to builders and contractors for spray foam, cool roofs and high efficiency central air conditioners on new home construction. Instead, (per City of San Antonio ordinance) incentives for all new construction will be based on the overall building efficiency and will not be tied to individual efficiency measures.

The new building code requirements are based on the adoption of the 2009 IECC codes for 2010. New construction must be a minimum of 15% more efficient than 2009 IECC code to qualify for an incentive.

All work complete by December 31, 2009 will still be eligible for rebates under the 2009 Home Energy Efficiency Rebate Program. Any work performed as of January 1, 2010will follow a new rebate program based on the overall energy efficiency of the home measured by HERS rating using RESNET standards.

Further details on the new rebate program will be available sometime in December 2009. Details of the new program are still being finalized and will be posted as the new information becomes available.

Healthiest Housing Markets 2009: Fall Update

#2 San Antonio, Texas
Market Health Indicator: 41.2

The recession arrived in San Antonio earlier this year, when employment finally turned negative due to weakness in the manufacturing sector. But with military bases as three of its top four employers, this Texas city may see better employment numbers next year, potentially fueling housing growth.

Housing here remains affordable at a median of $148,000, with prices declining a mere 1.6% during 2009. In addition, San Antonio routinely ranks among the best cities for relocation, and has been gaining population at a rate of 2.8% annually, a trend that continued even this year.

Despite favorable trends, though, San Antonio housing permits have fallen 54% so far this year, and comparisons may wind up even lower before the year is over. A full 72%of the action is in single-family rather than multifamily permits.

Courtesy: Hanley Wood Market Intelligence.

2009 Builder's Showcase Expo

Come visit Elegance in Design at the 2009 Builder's Showcase Expo.

This year we have decided to take a room that is commonly overlooked and unappreciated - the Utility Room - and added multiple vignettes so that consumers can see the myriad of opportunities available to them.

We have a canning/preserving area, a pet grooming area, a sewing/craft area, a lighting lab demonstrating the very latest in LED lighting, cold storage, and so much more.

Come join us May 25-27th from 10 am to 8 pm. See you there!

Lowball Appraisals Spark Uproar

In San Diego, Steve Doyle, division president for Brookfield Homes, is trying to close out the final 20 houses of a 120-unit single-family subdivision at prices ranging from $340,000 to $350,000. But recently there’s been a major hitch as appraisers assigned by banks are coming in with valuations of $60,000 or more under Doyle’s selling prices. The appraisers, who Doyle says are inexperienced, unfamiliar with local market trends or both, are using distressed sales — foreclosures and short sales — as their “comparables.” Some of the distressed properties are in poor condition, and all of them offer fewer amenities, Doyle says.

In the suburbs near Cleveland, Enzo Perfetto, manager of Enzoco Homes, builds custom houses on clients’ lots. Recently, he said, banks have begun assigning appraisers from far outside the area to value lots as part of mortgage packages on new homes. Some of the comparables they use are in foreclosure situations, and that depresses land valuations. A young couple who paid $75,000 for their lot recently had it valued at just $30,000 by an out-of-area appraiser who looked only at online data, according to Perfetto — discouraging the couple from proceeding. “I think the pendulum is swinging way too far in the wrong direction on appraisals,” Perfetto said. Bank-assigned appraisers often “don’t know the local market and they’re going for low numbers to be ‘safe.’” (www.washingtonpost.com)
Washington Post (7/4/09); Kenneth R. Harney

San Antonio Continues to Thrive

1. San Antonio had the 5th largest population growth in the country, adding 25,642 people in the past 12 months. That was 1.9% growth. (source: Express News)

2. Medtronic will create more thatn 1,400 jobs in its new Diabetes Therapy Management Center in San Antonio. We currently have 120,000 medical/biomedical jobs in San Antonio with a $16 billion payroll. (source: Express News)


3. Boeing Co. is going to hire 100 new employess to work Air Force planes at Kelly AFB. (source: SABJ)

Haas Residence

UNDER CONSTRUCTION
Quaint 3 BDR 3 Bth, Office, Game/Media Room, located in Laurel Canyon Ranch. Home will feature Cambria counter tops which is a natural quartz product that is environmentally safer than granite.

Big Boost in Housing Demand Expected From Echo Boomers

Depicting the current housing downturn in sobering terms, the 2009 "State of the Nation’s Housing" report released by Harvard University’s Joint Center for Housing Studies on June 22 nevertheless gives home builders firm assurances of a resurgence in demand once the echo-boom generation gains a footing in the housing market.

Born from 1981-2000, members of the echo-boom generation, Harvard says, will boost annual average household growth to more than 1.25 million during the decade of 2010-2020 — even under the worst of circumstances.

“While the economic crisis has dampened household growth, the sheer size of the echo-boom generation will give a powerful boost to long-run housing demand,” the report says.

Even under the weaker scenario, in which there would be 2.3 million fewer household formations in 2010-2020, average annual household growth can be expected to be comparable to the growth experienced from 1995-2005 as members of the echo-boom move into the prime household formation and home buying ages of 25 to 44.

“The number of echo boomers aged 25 to 44 will eclipse the number of baby boomers when they were those same ages by more than 5.9 million,” according to the report.

“With the number of households in this age group projected to increase between 2.0 million and 3.4 million, the demand for rentals and starter homes will surge,” the Joint Center says. “Meanwhile, with their longer life spans and sheer numbers relative to the preceding generation, the baby boomers will add dramatically to the number of households over 65. This will lift demand for retirement communities as well as services and home improvements that help seniors age in place.”

“With the echo baby boom driving demand for starter homes and apartments and the baby boom powering demand for homes suited to older Americans,” the design professions will be called upon to deploy new technologies and designs to meet the aesthetic tastes and functional needs of a new, more diverse younger generation on the one hand and a generation in need of home modifications to help them age more safely and healthfully in place on the other,” said Mohsen Mostafavi, dean of the Harvard University Graduate School of Design.

Garczynski said that the recovery is likely to be slow and spotty, beginning in places that did not experience unsustainable increases in housing production during the boom years. “Generally speaking, housing markets closer to the urban core and job centers could be on the leading edge of the recovery. Outlying rings of metropolitan areas will recover later once the inventory of unsold units declines to more normal levels.”

He also noted that demand for infill and higher density development could increase markedly in the period ahead. “This will require a spirit of cooperation between builders and the local officials who control the zoning and development process,” he said. “Hopefully, this will lead to greater acceptance of the smart growth principles NAHB has been advocating since the beginning of this decade.”

Study shows San Antonio is nation's best-performing city in recession

San Antonio has been ranked the strongest metropolitan area in the country for economic performance, according to a new report from the Brookings Institution.

The Washington, D.C.-based think tank has begun analyzing the impact of the recession throughout America’s metropolitan areas. In the first of a series of quarterly MetroMonitor reports, Brookings ranked San Antonio, Oklahoma City, Austin, Houston and Dallas as the top five metro areas in the country in economic performance in the wake of the recession.

Brookings ranked the top 100 metropolitan areas based on six key indicators — employment, unemployment rates, wages, gross metropolitan product, housing prices and foreclosure rates. This initial MetroMonitor report covers the first quarter of 2009.

The five worst metropolitan areas in the country impacted by the recession are Jacksonville, Fla.; Lakeland, Fla.; Tampa, Fla.; Bradenton, Fla.; and Detroit.

“All metropolitan areas are feeling the effects of this recession, but the distress is not shared equally,” says Alan Berube, research director of the Metropolitan Policy Program at Brookings and co-author of the report. “While some areas of the country have experienced only a shallow downturn, and may be emerging from the recession already, people living in metro areas that are now performing weakest economically should prepare themselves for a long recovery period.”

Howard Wial, director of the Metropolitan Economy Initiative at Brookings and another co-author of the report, argues that the report shows that a national fiscal and monetary policy will not be enough for stimulating the economy.

“Many (metro) areas will need targeted assistance, and since states have no funds available, the federal government will have to step up to fill the void.”

Concentrations of industry activity have both helped and hurts some regional economies during the recession. For example, metropolitan areas in states with specializations in energy and government employment — such as Texas, New Mexico, Oklahoma, Arkansas and Louisiana — have largely been insulated by the recession. However, metropolitan areas in states like Michigan and Ohio that depend heavily on the automotive industry have been impacted by the downturn in the economy, the report shows.

San Antonio is home to Randolph Air Force Base, Fort Sam Houston, Lackland Air Force Base and Brooks City-Base. The 2005 Base Realignment and Closure decision alone is providing a significant economic punch to the Alamo City’s economy through the consolidation of high-paying military health care jobs and more than $2 billion worth of new construction activity.

A separate report released by The DiLuzio Group LLC outlining the impact of BRAC showed that Fort Sam Houston alone would experience a 11,500 increase of personnel. The Army post will also gain 7.9 million square feet of space. Construction activity due to BRAC alone should create 46,000 construction jobs during the course of the building programs, the DiLuzio report showed.

Copyright 2009 bizjournals.com

Materials Cost for Single-Family Construction Rising Again

The price index for materials used in single-family house construction inched up 0.1 percent in May after dropping 5.3 percent over the last seven months. The Producer Price Index (PPI) for single-family construction is calculated monthly by the Bureau of Labor Statistics from a survey of manufacturers and wholesalers.

Energy and metals rose enough to offset declining prices for plywood, lumber and gypsum products. Average May prices fell 2.4 percent for gypsum products, 2.1 percent for softwood lumber and 0.7 percent for softwood plywood.

In the past year, lumber prices dropped 36 percent, gypsum products 22 percent and plywood prices 17 percent. Further small declines are likely in the next few months, but the long price collapse is nearing an end now that housing starts have stopped declining and are set to increase steadily for several years.


The only significant price increases in May were for asphalt (at the refinery) 8.6 percent, diesel fuel 4.4 percent and concrete block 3.8 percent. Road asphalt prices have not yet caught up with the recent rise in crude oil prices, so one or more big monthly jumps are still ahead. Similarly, diesel fuel price increases are lagging crude oil price increases because of high inventories of refined products.

Generally, diesel prices will continue to rise at a 10-15 percent annual pace through next year, although prices have been steady in the month since the May price survey was done. The increase in concrete block prices is due to temporarily lean inventories. Cement prices were unchanged in May and prices declined for most other concrete products.


For the whole economy, prices increased 0.2 percent in May but were 4.7 percent below a year ago. The total construction materials index shows about the same pattern. Prices rose 0.6 percent in May but were 5.5 percent below a year ago. The recession has created enough slack to keep inflation in the 0.0-1.0 percent range for the rest of the year, but it will be more for single-family construction where spending is recovering earlier than in the rest of the economy.

HUD Loosens Rules for Home Buyer Tax Credit

The U.S. Department of Housing and Urban Development announced today that first-time home buyers can use the $8,000 tax credit toward down payments on FHA-insured homes. Although the change has been talked about for weeks, today’s announcement made it official. “We believe that this could boost new home sales by 20 percent to 30 percent, which would match the declines builders anecdotally reported when DPA was eliminated last fall,” said Lisa Marquis Jackson of John Burns Real Estate Consulting.

This could have a huge impact to the move the industry, she says, particularly at the lower-end of the housing market. She also noted that home builders report 70 percent of their loans are through FHA.

Building codes are turning greener

San Antonio took the first step of the mayor's ambitious Mission Verde plan Thursday, passing new sustainable building codes aimed at making the city's homes and buildings more energy- and water-efficient.

The new rules, which the City Council passed by a unanimous vote, call for all new buildings starting in 2010 to be 15 percent more energy-efficient than currently required.

That would jump to a target of 30 percent by 2012, with a goal of carbon-free buildings by 2030.

"Carbon-free buildings" could be powered by onsite renewable energy systems, like wind or solar, that don't produce any greenhouse gases.

The ordinance also prescribes water-saving building techniques by 2010 that will cut in-home water use by 20 percent to 30 percent, San Antonio Water System CEO Robert Puente said. If 5,000 homes met the new standards, that would save an estimated 100 million gallons of water.

"I think this puts the city of San Antonio in the leading edge nationally as for doing the proper thing for the right reason," said Ed Kelley, retired president of USAA Real Estate and chairman of the task force that developed the ordinance.

The new rules came with the endorsement of an unlikely coalition - architects, developers and Sierra Club members.

"It's not often that the San Antonio Builders Association comes before you to support an ordinance that will increase the cost of housing," said Kim Shrum of the Greater San Antonio Builders Association.

Members of that coalition spent months on a task force developing the building codes. Although most acknowledge the new rules could increase the upfront costs of a home, they argue that the homeowner saves money over time because of lower water and power bills.

"The additional cost to build a new home to the 15 percent improved standard passed in today's ordinance should not cause a homeowner any additional out-of-pocket expense when looking at monthly mortgage payment plus operating costs for energy and water," said John Friesenhahn of Imagine Homes.

Councilwoman Delicia Herrera said the overall cost of homeownership was important.

"Affordable really means being able to keep your home once you get it," she said.

There is also an ongoing discussion at City Hall and among San Antonio's water and power utilities about incentive programs that could reduce or eliminate the upfront costs associated with energy- and water-efficient building methods.

The new building codes don't prescribe any specific methods to meet the energy and water saving targets. That will be left up to the builder, architect and homeowner.

The ordinance does outline a number of means to measure success. Among them is compliance with the 2009 International Energy Conservation Code, and certification by third-party programs like the federal government's Energy Star program and Build San Antonio Green.

The ordinance also calls for creating a sustainable building committee of architects, engineers, construction professionals, green building experts and others to keep tabs on the program and, among other things, ensure it doesn't become too expensive or onerous.

Such a committee is important to help vet the multitude of green building products available, said Tim Swan, task force member and CEO of Metropolitan Contracting Co.

"Sustainability is critical to our future," he said. "But we must not forget that the sustainability industry is still an industry."

Copyright 2009 San Antonio Express-NewsAll Rights Reserved

PREMIER BUILDING SYSTEMS; Homeowners Save up to 60% on Heating and Cooling Costs With Structural Insulated Panels

A growing building technique - structural insulated panels (SIPs) - is helping Americans reduce home energy use. Compared to traditional "stickbuilt" construction, SIPs save homeowners up to 60% on monthly utility bills.

According to Premier Building Systems, North America's largest SIPs manufacturer: SIPs are large, pre-made wall, roof or floor sections using high-strength wood panels sandwiching a rigid insulating foam core. They replace the wall studs and fiberglass rolls or blown-in insulation builders typically use. Because SIPs come in large sections up to 8 ft. by 24 ft., they have fewer gaps needing sealing. www.pbssips.com

"A SIP house has fewer joints, less complicated interfaces between conditioned and unconditioned spaces, and it is dramatically easier to make it tight," says Sam Rashkin, National Director of the U.S. Environmental Protection Agency's Energy Star for Homes program. In tests using large blowers, the U.S. Dept. of Energy's (USDOE) Oak Ridge National Laboratory found that rooms built with SIPs have 90 percent less air leakage than typical rooms.

A tight, well-insulated SIP home saves energy in both hot and cold climates. "It only costs an average of $200 to $300 a year to heat one of my SIP homes," says Scott Bergford, Owner, Scott Homes - Builder of the Year in the National Association of Home Builders (NAHB) and USDOE's 2009 EnergyValue Housing Awards. "That's anywhere from one-fifth to one-sixth the typical costs for this region," adds the Olympia, Washington-based builder.

"While SIPS have been around for several decades, they are getting more attention as homeowners and commercial building owners are looking to build green," says James Hodgson, general manager of Premier Building Systems. "The energy savings are pretty dramatic, and a SIP home or building costs about the same as wood frame construction."

In addition to saving energy, SIPs help seal out pollutants such as radon, molds, and pollen for healthier indoor air, and reduce construction waste up to 60% by eliminating the need to cut studs, joists and other framing materials on site.

"A SIP home is a true green structure that looks just like any other home," adds Hodgson. "SIPs fit with any architectural style, and virtually any floor plan can be easily converted to SIPs construction. Plus they are far stronger and straighter than buildings framed on site."

Real Estate Outlook: Turnaround in Sight?

Almost no one in the economic forecasting business wants to take the risk of announcing that it's now official. We're past the rock bottom of the down cycle for real estate and now we're moving into recovery mode.

That's understandable, but the fact is that the signs are all there. Sales and pending sales of homes have turned up sharply in hard-hit markets. House prices are more affordable. Consumer confidence polls show slight but noteworthy improvements in the public's outlook.

Check out developments for the week of April 6 alone:

Mortgage applications for purchases of resale and new homes were up again — 8% for applications using conventional loans, and a remarkable 17% gain in applications to buy houses using low-downpayment FHA mortgages.

Mortgage rates remain at near historic lows, though they may be bottoming out. Thirty-year fixed rates rose a tenth of a percent on average, according to the Mortgage Bankers Association, to 4.7%. Fifteen year rates stayed flat, around 4.5%.

A group of new consumer-sentiment polls came out showing that Americans are feeling better about their economic prospects for the first time in months. A survey of 15,000 adults by Discover Financial Services recorded a significant jump in confidence between February and March. A New York Times/CBS poll of 1,000 consumers found the same. The Times even put the results at the top its front page with the headline: "Poll Finds Brightening Outlook on U.S. Economy."

Members of NAHB reported that shoppers' visits to look at new houses for sale are "on the rise and consumer interest is increasing.” The association also announced that more than half of all U.S. households — 55 million of them — can now afford to buy the median-priced $200,000 new home. That's up 45% in the past 24 months.

Even Business Week, which has been particularly harsh on housing in recent years, ran a cover story about the turnaround getting underway — focusing on hard-hit areas of Florida, California and Las Vegas, where sales have been rising fast and unsold inventory taking a plunge.

The report quoted Paula Hellenbrand, president of the Cape Coral Florida Association of Realtors®, who predicted an end to inventory problems on the near horizon.

"At this rate (of current sales),” she told the magazine, "we're going to see a big shortage of inventory by summer, and that will trigger price increases.”

That would be extraordinary, especially in view of still-rising unemployment and depressed levels of spending by consumers. But don't count it out.

This article appeared in the April 14 issue of Realty Times and was reprinted with permission.


NBN Tools

Construction Costs Lowered!

As businesses throughout the nation and the world in every industry and profession are coping to reduce overhead and other operating expenses in order to remain competitive while giving lasting value to their customers, Elegance in Design Custom Homes is proud to have accompished just that.

Throughout all of 2008, as a founding partner of a local buyers purchasing group, we have been negotiating prices for goods and materials that would bring significant savings to you, our clients. To date we have been able to bring overall costs down 9%! I am especially pleased to announced that basically every category of durable goods has been contracted and our clients are reaping the benefits.

Due to the success in the material cost savings, we have been over the last 2 months working to bring favorable labor costs to the table. Stone masons, stucco installers, framers, roofers, etc., have all been contacted and we are now starting to see decreases on the labor side of the operations.

For example, a project to be started in August of 2008 had a frame labor cost of $5 p/sq ft. As this house was in excess of 8300’ framed, the quoted cost was greater than $41k. Today that same house would be built at $3.75 p/sq ft framed which results in a greater than $10k savings! When you factor in the other labor cost savings we here at Elegance in Design should be able to build any new home at rates we havent seen in years, which gains a tremendous amount of additional equity for the homeowner.

Final home costs are still determined by each individual buyer based upon their level of finish out.

As another service that was recently added we are now able to give a customer 10 free initial hours of design time with an award winning interior designer. Those hours can be spent on any facet of the project, from paint to fixture selections, to window treatments and furniture. Once again lasting value is being built into the project not only from a cost basis standpoint, but also from a customer service perspective.

Thank you for your continued support!

New Project - Blanco Tx

We are proud to announce the groundbreaking of an exciting new project in Blanco Tx. This beautiful 4000 +/- sq ft home has exquisite tile flooring with mosaics, knotty cherry custom cabinetry, beautiful granite counter tops throughout, firepit and spa, and all stainless steel appliances.

Mechanically this home has an advanced HVAC system with damper control and wireless access portability, spray foam insulation, and a 41,881 gallon subterranean rain catchment system located directly beneath the RV/2 car garage!

Watch for updates and progress to include photo's!

With national headlines looking down see why Texas is looking up!

http://www.texaplex.com/

I wanted to pass along this short video. I believe you will find it to be a great source of inspiration as well as a valuable tool that you are free to use.

Home Technology Design: How to Successfully Integrate Electronics Into Your Design

When designing a home with technology as part of the project a great deal of thought and effort goes into implementing a home technology design. Gone are the days of a phone jack here and a cable outlet there. Savvy clients demand home technology and many more know they should have it.

Successful projects start with asking several key questions such as:

How much technology is the client looking to implement in their home?
How will integrating technology impact the overall design?
And the most import, how can the team accomplish everything that the client has requested?

The hallmark of a truly successful project is the collaboration of many talented people and countless hours of brainstorming, coordinating, planning and designing. These design sessions need to include the client, the Building Designer or Architect, the Interior Designer and the Home Technology Integrator. This will ensure that all people on the design team are familiar with the client’s wants, needs and desires and how those decisions will impact each team member.

To start the process the first step is to partner with a company that specializes in Home Technology Integration. This company should have the experience and expertise in implementing projects from basic to very complex.

Most Home Technology Integration companies recognize the importance of educating designers and builders. Many are certified to teach continuing education and are more than willing to help educate you on working technology into your designs.

The most qualified home technology companies have the ability to understand the entire home design and construction process, and generate detailed CAD drawings showing locations and specifications of products that will be used in all facets of the project. They should also understand how these products will interact with the home’s overall design. Home technology should always blend with the design of the home and the décor of each room.

The integration of home technology can be as simple as how a flat screen TV above a fireplace can be concealed, to a complete home automation system that will allow centralized control of everything in the home from distributed audio and video, climate control, security, lighting, pool control and motorized window treatments.

Distributed Audio

One main area that more and more people are requesting is Whole House audio or distributed audio. This is the capability to have multiple music sources, i.e., cable box, satellite music, iPod or MP3 music players, accessible from any room in the house. The size and complexity of these systems can be from a very simple keypad to select the source and raise and lower volume, to a full color touch screen that will show all music information including artist, song title and cover art. As these systems become more and more prevalent in our homes, the manufactures of these systems have been listening and are now providing hardware that is easily concealed. One example of this is the in-ceiling / in-wall speaker.

We have all seen these nice little eye sores sticking out in all the wrong places. Image if you could, the ability to have that speaker be a 4” square with a grill that can disappear with the color of the ceiling or wall. Well these speakers are available now. Also the technology is there to allow the speaker to be concealed completely behind the drywall with no grill showing at all.

The one thing to keep in mind is that the more that you need to conceal the speaker the higher the cost. So on that next project, don’t think just because the client would like to have music in that elaborate study that it has to compromise your design. There are many possibilities and many options.

Another item that is becoming even more popular is what is called an Entertainment Server. This is a hard drive based system that will allow the home owner to place all digital media from Music, Movies and Photos onto a single system that can be accessed from any room in the house. When it comes to photos we have been living in that digital age to the point that we all have collections of digital photos scattered between computers and digital cameras, that we never have the opportunity to enjoy the last family vacation. With the advent of the Entertainment Server we can now enjoy those vacation photos along with our favorite music, all in the comfort of our Family Room that is easily accessed with a simple unified remote control.

With an Entertainment Server the main thing to keep in mind is the more information that needs to be stored will increase the price. Also, as the technology becomes more advanced, and more readily available the cost of these systems will come down. An example would be a recent manufacture of one of these servers has just introduced a more cost effective unit based on the same advanced technology that they provide in their $12,000 unit for a cost of around $3,500. This same manufacture has also just introduced the capability to control their server through an Apple iPhone or Apple iTouch unit. This means that the control of these systems is becoming easier and more user friendly.

Lighting Control

One of the fastest growing home technologies by far is lighting. Lighting design and Lighting control along with motorized window treatments is the most dramatic way to enhance the atmosphere, convenience and safety of a home, while adding eco-friendly energy savings.

A lighting control system allows the scenes created by the lighting designer to be easily recalled from a single button push, while simplifying ease of use and removing wall clutter. Each room can have multiple “looks” or scenes stored as a single button press. Many of our clients enjoy custom labeling the lighting controls with simple terms like “Read” or “Dine” or “Entertain”. Imagine pressing one button and having the room or the entire house smoothly transition from one scene to the next to match your exact needs.

Lighting systems can be integrated with your other control systems so when you press the movie button in the theater the lighting dims automatically, or when you drive into the driveway the path lights turn on and doorway lights switch on.

Motorized window treatments work together with lighting design and control to manage the amount of natural light allowed into a space. They also provide privacy, block damaging UV rays, and help reduce excessive heat.

Home Theater or Home Cinema?

Many clients are requesting a Home Theater to be designed into their homes. The term Home Theater generally refers to a large screen TV and Surround Sound, but these days just about anything with a TV and more than two speakers is called a Home Theater. Today a new term has evolved that is more akin to the experience of going to the movies, with picture and sound quality that surpasses commercial theaters, these spaces are being referred to as Home Cinemas.

The Home Cinema experience starts with a room dedicated to maximizing the true experience of watching movies while creating the suspension of disbelief. The room should allow the user to escape from the day to day barrage of demands and getaway to an area of their home that is truly relaxing and designed with the main intent of watching movies, sports or just enjoying a special event broadcast in high definition picture and sound.

No matter what the request, a skilled Home Technology Integration firm will have the right team of people to not only design a system that meets the needs of the client, but can deign a system that is easy to use and adds value and convenience to any home.

When it comes time to include home technology as part of your next project, reach out and contact a Home Technology Integrator and see how they can help make your next project truly successful for all parties involved.

Reprinted with permission from Design Lines magazine.

CEDIA is an international trade association of companies that specialize in designing and installing electronic systems for the home. The association was founded in September 1989 and has more than 3,500 member companies worldwide. CEDIA Members are established and insured businesses with bona fide qualifications and experience in this specialized field. For more information on CEDIA, visit the association’s website at www.cedia.net.

ICF Wall Systems Can Achieve a Tight Thermal Envelope

For many builders, continuous concrete and foam wall systems, such as insulating concrete forms (ICFs), can be an easier and less labor-intensive way to help meet the new, higher energy-efficiency benchmarks consumers are seeking. They may also help qualify homes for energy-efficiency tax incentives.

Properly installed ICFs and similar wall systems can help builders achieve a tight thermal building envelope that can help them achieve an Energy Stae efficiency rating for their homes.

When properly installed, ICFs can provide the insulation and air barriers — with no gaps, voids or compression — needed to complete the U.S. Environmental Protection Agency’s thermal bypass checklist required to earn an Energy Star label.

The added efficiencies can also mean additional points if a home is certified to either the NAHB Model Green Home Building Guidelines or the National Green Building Standard under NAHBGreen.

Air flow through insulation reduces its effectiveness and efficiency. In conventional framing, if batt insulation is not carefully installed tightly around air barriers, framing and finishes, or if it is compressed around electrical wiring, pipes or other obstructions within a wall, the thermal performance of the wall and building envelope can be degraded. A 5% gap in insulation coverage can reduce the effective R-value by as much as 50%.

A properly installed two-story ICF exterior wall section assembly has fewer areas requiring special consideration and inspection than traditional construction. Building with ICFs, removable forms, precast concrete or similar concrete and foam systems can eliminate critical coordination issues and construction details that would have to be addressed and verified when building typical Energy Star-compliant exterior walls.

As with conventional construction, care is needed to properly install ICFs and other concrete wall systems in order to achieve energy-efficiency goals.

Housing Rebound

WASHINGTON (Reuters) - New U.S. housing starts unexpectedly rebounded in February, surging 22.2 percent, according to data on Tuesday that provided a rare dose of good news for the recession-hit economy and fractured housing market.

The Commerce Department said the jump in housing starts to a seasonally adjusted annual rate of 583,000 units was the biggest percentage rise since January 1990.

That was also the first increase since April last year, when they advanced by 1.6 percent. January's housing starts were revised to a rate of 477,000, the department said.

Analysts polled by Reuters had expected an annual rate of 450,000 units for February.

Geothermal Testimony

Geothermal put into home use; Earth friendly: New Candler Park house's heating, cooling system will pay for itself.


KEVIN DUFFY; Staff
It's an energy source that's right under our feet, but hardly anyone uses it.

Geothermal taps the Earth's constant subterranean temperature --- in Atlanta that's about 62 degrees --- to heat and cool buildings. The system works by circulating water through underground tubes to move the Earth's heat to the home.

Margaret Olson and Scott McMahon are on to geothermal. It will be part of the home they're building in Candler Park.

The couple is spending $32,500 on their heating and cooling system. The geothermal upgrade was $16,000 to $20,000 of that cost, depending on what the couple would have spent had they gone with a conventional system.

Even with the premium price, "it's where you should spend your money," said Olson, an engineer with the U.S. Environmental Protection Agency.

Why? Because geothermal is inexhaustible, clean and quiet, and cheaper to operate. It doesn't use a fossil-fuel burning furnace.

The installer in Candler Park, GeoThermal Energy Systems of Norcross, says the couple's monthly energy savings will be about $60 greater than their loan payment on the system and that, over 20 years, they could save $26,000 in energy costs.

Another big plus of geothermal is the tax savings. The U.S. government offers a 30 percent credit with no cap; Georgia's credit is $2,000. Olson and McMahon figure their investment will pay for itself in five to eight years.

Fewer than 1 percent of households use geothermal, the U.S. Department of Energy estimates. The Obama administration is encouraging geothermal use in residences and commercial buildings as it tries to make America less fossil-fuel dependent.

Kenny Libby, president of GeoThermal Energy Solutions, said his company has installed about 40 systems since fall 2006.

Geothermal is more efficient than conventional heating and air conditioning systems because, rather than trying to cool hot summer air and heat cold winter air, it uses the Earth's steady underground temperature to make heating and cooling easier.

At the Candler Park site, GeoThermal Energy Systems dug two 400-foot wells to house the system's looping pipes. During the winter, water in the pipes will move the Earth's heat to the house, where it will be absorbed by a refrigerant, compressed to a higher temperature and blown into rooms. During the summer, heat will be withdrawn from the house and sent underground.

No air conditioner will buzz next to the house.

John Scheafbauer, who operates a foam insulation business, had geothermal installed while building a home in Decatur. He acknowledged the upfront cost scares off a lot of people, but "my bills on my 4,500-square-foot home are less than on my old 1,500-square-foot home by $150 a month during the high period of the summer."

With the help of their builder, Landmark Builders Group, and their architect, Jonathan Elmore of modHouse, Olson and McMahon will apply to join four houses in Georgia to be LEED-certified, a rating system designation of the U.S. Green Building Council that stands for Leadership in Energy and Environmental Design.

Copyright 2009 The Atlanta Journal-Constitution

Federal Weatherization Program

A new partnership between the U.S. Department of Energy (DOE) and the U.S. Department of Housing and Urban Development (HUD) will streamline federal home weatherization programs and provide $16 billion in economic recovery funds for state and local home weatherization and energy efficiency efforts. The interagency partnership not only will make it easier for homeowners to weatherize their homes, it also will foster a home energy efficiency industry, potentially creating up to 87,000 jobs.

"This partnership will help put Americans back to work while saving families hundreds of dollars on their energy bills," DOE Secretary Steven Chu said in announcing the effort.

DOE is investing $5 billion in the Weatherization Assistance Program, allowing an average of $6,500 per home in energy efficiency upgrades for low-income families. The State Energy Program will receive grants totaling $3.1 billion to fund rebates for home energy audits or other energy efficiency improvements, to develop renewable energy projects, to promote Energy Star products, to improve the efficiency of state and local government buildings, and for other money-saving energy efficiency initiatives at the state level.

HUD's funding includes $4.5 billion to renovate and upgrade public and Native American housing—largely through energy improvements—and $250 million for efficiency retrofits to privately owned, federally assisted housing.

To get the program under way and spur job creation, the DOE is releasing $780 million to states this month—the first of several payments states will receive. Additional funding will be released as necessary. There will likely be work available to contractors, remodelers, and builders willing and able to expand their repertoire of services to energy efficiency upgrades and home weatherization.

In addition to funding, the DOE/HUD partnership will develop guidelines and specifications for retrofitting public housing and privately owned, federally subsidized rental units. The agencies also will develop a common baseline for measuring home energy use and the gains from efficiency improvements, as well as develop and disseminate a tool that will give homeowners access to this information.

For information on DOE's Weatherization Assistance Program, click here; for more information on the State Energy Program, click here.

Valuable Homebuyer Credit

Cracking a Valuable Homebuyer Credit
By TOM HERMAN


The recently enacted economic-stimulus law contains an unusually attractive new tax break for many homebuyers -- if they can only figure out how it works.

The new law sweetens a provision known as the "first-time homebuyer credit." In essence, if you meet certain qualifications, such as buying a home from Jan. 1 through Nov. 30 this year, you may be eligible for a tax credit of as much as $8,000. You also have a choice of claiming the credit on your federal income-tax return for 2008 or 2009. A credit is typically more valuable than a deduction, since it eliminates your taxes on a dollar-for-dollar basis -- and in this case, you may get it even if you don't owe any taxes.

But Congress made the homebuyer-credit fine print so devilishly tricky that many Americans are likely to have to pay an expert for help in deciphering it. "We've had numerous calls because people are confused," says Claudia Hill, owner of Tax Mam Inc., a Cupertino, Calif., tax-services firm. "The problem is when things are this complicated, many people don't get the benefits that Congress intended for them."

Internal Revenue Service officials recently issued a revised form and instructions. Even so, Nancy Hays of H&R Block Inc., the Kansas City, Mo.-based tax-preparation company, describes the credit as "crazy complex."

Here are answers from IRS officials and tax advisers to some questions about the credit.

Q: Who can claim the credit?

A: In general, the IRS says you may be eligible if you bought your main home, located in the U.S., after April 8, 2008, and before Dec. 1, 2009 -- and if you (and your spouse, if you're married) haven't owned any other main home during the three-year period ending on the date of purchase. That means you might be eligible even if you owned a home for many years before that period.
However, there are numerous other qualifications.

Q: How much is the credit?

A: That depends on when you bought the home and other factors, such as your income and the home's price.

If you bought during the 2008 period and qualify for the credit, the maximum credit is generally $7,500. But it's only half that amount if you're married and filing separately from your spouse. Even though it's called a credit, it's really an interest-free loan. You generally have to repay it over a 15-year period, without interest, in 15 equal installments, the IRS says. (There are several exceptions to this repayment rule. We warned you this was tricky.)

The rules are more generous if you buy a new home during the 2009 period and meet all the qualifications. In that case, the maximum amount generally is $8,000, or half that amount if you're married filing separately. More important, you don't have to repay the credit at all unless that home "ceases to be your main home within the 36-month period beginning on the purchase date," the IRS says.

Initially, there was some confusion about whether the $8,000 maximum credit would apply if someone bought a home in 2009 and chose to claim the credit on their return for 2008. It's now clear the $8,000 maximum limit does indeed apply, says Mark Luscombe, principal tax analyst at CCH, a Wolters Kluwer business. Naturally, though, "this doesn't help people who actually bought homes in the 2008 qualifying period, and who are limited to a $7,500 credit that must be repaid," he says.

Additionally, the credit generally is limited to the amounts mentioned above -- or 10% of the home's purchase price, whichever is less. For example, if you bought a new home this year for $70,000, the maximum amount of the credit would be limited to 10% of that amount, or $7,000.

Q: How do the income limits work?

A: You may be eligible for the full amount of the credit if your adjusted gross income, with certain modifications, is $75,000 or less -- or $150,000 or less if married and filing jointly. However, the credit begins to disappear, or "phase out," if your income exceeds those amounts. You can't claim the credit at all if your income is $95,000 or more, or $170,000 or more if married and filing jointly, the IRS says.

Q: What if I built a new home? How does that work?

A: You are considered having purchased it "on the date you first occupied it," the IRS says.

Q: I own more than one home. How do I figure out which is my "main" home? And does it have to be a house?

A: The IRS says your main home is "the one you live in most of the time." No, it doesn't have to be a house. It can be "a house, houseboat, house trailer, cooperative apartment, condominium, or other type of residence."

Q: Are there are other qualifications?

A: Yes. You can't claim it if your home is located outside the U.S. You also aren't eligible if you're a nonresident alien, if you inherited the home or got it as a gift, or if you acquired it from a "related person," such as your spouse, parents or grandparents.

Q: Will the credit help me if I don't owe any tax?

A: Yes. The credit "may give you a refund" even if you owe no tax, the IRS says.

Q: What form do I use?

A: Form 5405. The IRS recently revised it and posted it on its Web site (www.irs.gov), along with instructions. Dean Patterson, an IRS spokesman, says "programming is being done to electronically process Form 5405" to claim the $8,000 credit for homes bought in 2009. The IRS "will be able to process these returns electronically beginning March 30" this year, he says.

Q: Where do I put the credit on my Form 1040?

A: Line 69.

Q: I've already filed my return for 2008. Can I still claim it? If so, how?

A: Yes. File what's known as an "amended" return. Use Form 1040X, and attach Form 5405.

Q: If I buy this year, should I claim the new credit on my 2008 or 2009 tax return?
A: That can be tricky, and you may need to consult a tax pro. In general, most people who buy this year and qualify for the new credit probably will want to take it on their tax return for 2008, says Tax Mam's Claudia Hill. "They'll get their money more quickly," she says.

But some people might be better off claiming the credit on their 2009 returns. These would include eligible homebuyers who buy this year, whose financial circumstances changed during 2009 and who might qualify for a larger credit on their returns for 2009 than the prior year. An example would be someone whose income was too high to get any of the credit for 2008 but who recently lost his job and thus would be eligible for the full credit on his 2009 return, to be filed next year.

Fellow Texan, T. Boone Pickens, to Speak

Financier and alternative energy advocate T. Boone Pickens will speak at the NAHB National Green Building Conference. Addressing attendees at the National Green Building Awards Dinner on Friday, May 8, Pickens is expected to speak about environmental initiatives and the important role that the home building industry plays in mainstreaming new technologies.

Dallas and Houston were just named two of the Environmental Protection Agency's top five most energy-efficient cities, due to their large number of Energy Star-rated commercial buildings. Can Texas take the lead in residential green building too?

As a leader in the local green building industry Elegance in Design will be presented with an award at the awards dinner, and will be in attendance for the break-out sessions regarding new initiatives and technologies.

Watch for updates on this blog about this years conference!

By Kathy L. Deely

Whatever building material Ed Hall,founder&president of Elegance in Design Custom Homes is working with, this proud veteran’s core values constitute a building block common to all of them: namely, that the customer absolutely comes first in every respect.

This award-winning builder, recently chosen by his peers to chair the Custom Builders Council, prides himself and his staff on their relentless attention to detail and unsurpassed customer service. “I’ve been called a perfectionist, in the sense of my wanting things done not only right but the best they can be done, and I plead guilty as charged. Our mission at Elegance in Design is to complete the job on time,bring it in under budget and exceed our customers’ highest expectations. That’s a secret for success I’m glad to share with anyone.”

“We are not here for the money; for me,making the great American dream of home ownership come true is almost a sacred calling. I take home ownership very personally — maybe because I grew up in a trailer instead of a real home,” he explains.

Hall’s father was a truck driver for Coca Cola; his mother worked in a New Hampshire weatshop as a seamstress. “Though we were poor, my parents were too proud to take welfare of any kind. They instilled the values of self reliance in me and my younger brother.”

But despite those tough times, this obviously happyman was an equally happy boy. “My family was always really close – and not just because of the close quarters in that trailer – though it was definitely smaller than some of the master suites I’ve built!” he jokingly adds. “Mom made sure we had supper and came together as a family every single night. She knew about ‘quality time’ long before the concept was invented.”

At 17, Hall took his first industry related job – as a carpenter. “The work was hard but satisfying. I decided then and there to eventually pursue the dream of becoming a builder.” But first, at 19, he joined the Air Force, where he worked as a paramedic. “Taking care of people has been indoctrinated intome, and that’s how I treat my customers, guiding them through the entire design / build process, making it as seamless and pleasant as possible.”

Asked to name one of his single proudest moments, he instantly responds, “It was the day a few years ago when I took my mom for a ride when she was visiting us here one summer. We pulled up to a little 1,400 square foot house I’d custom built and I handed her the keys, telling her, ‘It’s all yours, Mom.’ ” He shakes his head. “I don’t know which of us was crying harder.”

Hall’s classic rags-to-riches experience has made him highly sensitive to sparing his customer’s economic anxiety. “When I go over costs with my clients, I tell them, I want you to live BENEATH your means,not just within yourmeans…” If they think they can afford a $250,000 house, I try to find a way to build them a home of equal quality for less than what they had originally planned for.”

Professional Home Designer, Greg Setzer, of Setzer Home Designs, has worked closely with Elegance in Design on several projects, and can’t praise them enough. “Ed & his team not only demand excellence,they achieve it. Their level of commitment and meticulous planning is unparalleled. Ed has an uncanny ability to foresee potential problems and head themoff at the pass. The result is a seamless construction endeavor, and an unsurpassed attention to details.”

“We welcome customers”, says Ed, who’ll be active partners in the design/build process, so we can ensure a smooth, continuous process from initial contact to the closing.” “We rejoice in taking our customer’s unique vision and bringing it beautifully to life . . .”

Hall, a proud member of GSABA, is also proud of Elegance in Design’s recent Certified Green Professional Designation, an honor accorded to a select group of builders committed to incorporating environmental considerations and technology into every step of the building and development process. “We find ways to do this without driving up home prices.

For instance, there’s a substance,’ No-Burn’,we can spray on every stick of lumber used in a home that makes it not only fireproof but also extremely resistant to mold and mildew proof. The best part is, this adds less than 1% to the final cost, resulting in lower insurance costs, greater peace of mind, and is 100% green. Green home owners also enjoy lower maintenance and utility bills, and better indoor air quality. “This dovetails with our mission: We’ve given our customer their dream; now, we want to maintain & protect that dream.”

Small wonder then that Elegance in Design Custom Homes is a multiple year Summit Award winner. One reason for that success states Ed is JimTucker, his Director of Residential Construction.

“Jim won the prestigious Construction Superintendent of the Year for builders with a volume of less than 20 homes per year for the second consecutive year in a row.” “Jim is as indispensable to our company as my main partner is: my wife, Carrie, who runs our back office operations as well as she runs our home and mothers our four kids. I’m a very lucky man...”

Maybe so, but it also seems as if this selfmade man has made much of that luck
himself.

Today's Builder Article - March 2009

Get Involved…Stay Involved!

"Alone we can do little, together we can do so much." - Helen Keller

My answer to the question, "Why do I serve?" is not one of heartfelt sentiment or great inspiration, it is simply for the love of my country, my fellow man, and the industry that I am proudly associated with. I have a history of joining professional organizations, i.e., the Greater San Antonio Builder’s Association, (GSABA), to make a difference and to help ensure that those whom I love and care about, as well as future generations, will be able to live and practice free trade where there is all the opportunity in the world through hard work and dedication to do anything you want to do and be anything you want to be.

People volunteer for a wide variety of reasons, especially wanting to help others. Instead of considering volunteering as something you do for people I challenge you to begin to think of it as an exchange.

Consider that most people find themselves in need at some point in their lives. Today you may be the person with the ability to help, but tomorrow you may be the recipient of someone else's volunteer effort. Even now you might be on both sides of the service cycle: maybe today you’re planning on helping on an industry related committee, while last month your local church group brought you dinner while you were dealing with a family medical emergency.

Volunteering also includes "self-help." If you’re active in your professional organization you’re adding your effort to the work of others to make everyone's lives better. As long as you are truly serving through your volunteer work, isn't it wonderful that such an exchange occurs? In fact, it tends to strengthen your commitment to volunteering when you can see the benefits to both the recipient of your efforts and to yourself. And it is much more comfortable than "charity" because it upholds the self-esteem of those with whom you volunteer.

As the title of the article states: GET INVOLVED…STAY INVOLVED!

This article was contributed by Ed Hall of Elegance in Design Custom Homes. Ed has faithfully served the building industry whom he considers his “family” with passion, integrity, and determination. Ed currently serves on the Board of Directors for GSABA, and is the immediate past Chairmen for the Custom Builder’s Council. Ed also is a board member for the Texas Custom Builder’s Guild, and sits on a number of non-profit organizations. To learn more about Elegance in Design Custom Homes please visit www.eleganceindesign.us.

The Healthiest Housing Markets for 2009

4. San Antonio, Texas

2008 total building permits: 10,261

San Antonio is another Texas market that is still adding jobs, about 15,000 last year. A city of more than 2 million people now, its population is also growing, at a 2.8 percent annual clip through the third quarter of last year. Existing home prices are barely declining in San Antonio, down only 1.8 percent in the last year, leaving the median price of an existing single-family home at an affordable $154,400, 25 percent below the national average of $200,500, according to the National Association of Realtors. The upper end of the housing market was hurt recently when AT&T announced it would be moving its corporate headquarters to Dallas.

To read the full report please go to:

http://www.builderonline.com/find-articles.aspx?byline=Boyce%20Thompson

Economic Stimulus Approved

For qualified home purchases in 2009, the legislation:

• Stipulates that the $8,000 tax credit does not have to be repaid, unlike the tax credit passed last summer;
• Keeps the tax credit refundable, or claimable regardless of tax liability;
• Extends the sunset date from July 1, 2009 until Dec. 1, 2009 so that consumers can utilize it during the critical summer and fall buying months;
• Allows tax credit home buyers to participate in the mortgage revenue bond program; and
• Permits state housing finance agencies to help buyers at closing by advancing the credit amount as a loan using tax-exempt bond proceeds.

While much of the industry's focus was on the home buyer tax credit, there are several other important components in the legislation that will help small businesses and bolster the housing market. H.R. 1, the American Recovery and Reinvestment Act of 2009, will:

• Help home borrowers in high-cost markets by extending the 2008 FHA, Fannie Mae and Freddie Mac loan limits of $729,750 through the end of this year;
• Temporarily allow exchange of Low-Income Housing Tax Credit allocating authority for tax-exempt grants and appropriates $2 billion in HOME funding for affordable housing projects;
• Provide up to a 10-year deferral of tax due to business debt restructuring;
• Expand the net operating loss carry back period from two years to five years for small businesses (businesses with average gross receipts of no more than $15 million over the prior 3 years) for losses arising in tax year 2008;
• Extend the 25C existing home remodeler credit through the end of 2010, increase the credit rate from 10 percent to 30 percent, raise the lifetime cap from $500 to $1,500, and expand the set of qualifying property;
• Provide an Alternative Minimum Tax patch for tax year 2009;
• Increase bonus depreciation and Section 179 small business expensing for business investment in 2009;
• Increase New Markets Tax Credit allocating authority for 2008 and 2009; and
• Delay for one year the start of the 3 percent government contractor withholding requirement (from 2011 to 2012).

29th Annual Home and Garden Show

Show Technology, the premier home and garden show producer, is pleased to announce that Ed Hall of Elegance in Design Custom Homes will be hosting three (3) seminars at this years show.

The show dates are Febraury 27 - 28th, and March 1st, with Mr. Hall's seminar dates & times to be Friday the 27th at 7 pm, and Saturday the 28th, at 2 pm.

The topics will include Rain Water Catchment Systems, Spray Foam Insulation, and "No-Burn" Fire Proofing Option for your House.

A limited number of complimetary tickets are available. Please call 830-995-4316 to reserve your tickets. Maximum 2 per family.

Why Elegance in Design uses "No Burn" - live demo

GSABA BoD Appointment

Ed Hall, President of Elegance in Design Custom Homes, was voted to a three year term on the Greater San Antonio Builders Association Board of Directors. Hall will begin his term January of 2009 and will be focusing on affordable housing issues, proposed local codes and ordinances, and government affairs regarding housing and its impact in the south Texas market.

Hall also received a Presidential Citation from outgoing President Michael Moore for his “…commitment and dedication to the housing industry and for your leadership of the Custom Builders Council…”.

Geothermal FAQ's

General:

How efficient is a GSHP?
The GSHP is one of the most efficient residential heating and cooling systems available today, with heating efficiencies 50 to 70% higher than other heating systems and cooling efficiencies 20 to 40% higher than available air conditioners. That directly translates into savings for you on your utility bills.

Can one system provide both space heating and cooling for my home? And what about heating hot water?
Yes. A GSHP can be a combination heating/cooling and hot water heating system. You can change from one mode to another with a simple flick on your indoor thermostat. Using a desuperheater, some GSHPs can save you up to 50% on your water-heating bill by preheating tank water.

How does a GSHP system heat water for my home?
Using what is called a desuperheater, GSHPs turn waste heat to the task of heating hot water. During the summer, when the system is in cooling mode, your hot water is produced free as a byproduct of the thermal process. In winter, with the heating mode, the desuperheater heats a portion of your hot water. Desuperheaters are standard on some units, optional on others. Stand-alone systems that will heat water all year around can be purchased.

How much space does a GSHP unit require?
Most of a GSHP installation is underground. Inside the house, the heat pump units are about the same size as a traditional heating and cooling unit.

How long will my GSHP system last?
GSHPs are durable and highly reliable. The GSHP contains fewer mechanical components, and all components are either buried in the ground or located inside the home, which protects them from outside conditions. The underground pipe carries up to a 50-year warranty.

How noisy is the GSHP unit?
GSHPs are very quiet, providing a pleasant environment inside & outside of the home. GSHPs have no noisy fan units to disturb outdoor activities, on or near the patio.

How safe are GSHPs?
GSHP systems are safe and protected. With no exposed equipment outdoors, children or pets cannot injure themselves or damage exterior units. GSHPs have no open flame, flammable fuel or potentially dangerous fuel storage tanks.

What about comfort?
A GSHP system moves warm air (90-105(F) throughout your home or business via standard ductwork. An even comfort level is created because the warm air is moved in slightly higher volumes and saturates the building with warmth more evenly. This helps even out hot or colds spots and eliminates the cold air blasts common with fossil fuel furnaces.

How effective is this underground system?
The buried pipe, or ground loop, is the most recent technical advancement in heat pump technology. Recently, new heat pump designs and improved buried pipe materials have been combined to make GSHP systems the most efficient heating and cooling systems available.

Are GSHP systems guaranteed?
Nearly all GSHP system manufacturers offer a warranty for major components that is equivalent to the warranties for conventional heating and cooling systems. Manufacturers of plastic pipe used for ground loops warrant their products for 50 years.

Can these systems be used for commercial, industrial, or apartment requirements?
Yes! Many GSHP systems are being installed using a multitude of systems hooked up to an array of buried vertical or horizontal loops. This simplifies zone control and internal load balancing.

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Savings / Costs:

How will I save money with a GSHP?
GSHPs save money, both in operating costs and maintenance costs. Investments can be recouped in as little as three years. There is a positive cash flow, since the energy savings usually exceeds payment on the system.

How much does a GSHP cost?
The initial investment for a GSHP system is greater than that of a conventional system. However, when you consider the operating costs of a geothermal heating, cooling, and water heating system, energy savings quickly offset the initial difference in purchase price.

What other costs are there besides the GSHP system?
You can expect an installation charge for any electrical work, ductwork, water hook-up, and other provisions or adaptations to your home that are required. Your installer can estimate these costs in advance.

How would increased use of GSHP systems affect electricity cost and availability?
The reduced peak load requirements would allow utilities to serve more customers and to lower fixed costs per customer, thus offsetting some increased variable costs. This would result in less cost per kilowatt, since fixed investment for new capacity is high.

Does my state offer any incentives for installing a GSHP system?
Some Texas utilities offer rebates or incentives to their customers who purchase GSHPs.

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Installation:

Are GSHP systems difficult to install?
Most units are easy to install, especially when they are replacing another forced-air system. This is known as a retrofit. GSHPs can be installed in areas unsuitable for fossil fuel furnaces because there is no combustion and thus no need to vent exhaust fumes. Ductwork must be installed in homes without an existing air distribution system. Your dealer or installer can assess the cost of installing ductwork.

Can I install a ground source heat exchanger myself?
It's not recommended. Thermal fusion of the pipe, drilling and trenching are procedures best handled by licensed professionals. Nonprofessional installations may result in less than optimum performance, which could cancel out anticipated savings

How far apart are trenches and vertical boreholes spaced?
Trenches are spaced four to five feet apart while boreholes are spaced ten to fifteen feet apart.

How long does it take to install a horizontal system?
This depends on soil conditions, length and depth of pipe, and equipment required. A typical installation can be completed in one or two days.

How long does it take to install a vertical system?
With the vertical installation, time varies with conditions on the site such as type and depth of the overburden, type and hardness of the bedrock, and the presence of aquifers. Typical drilling times are one or two days; total installation can usually be accomplished in two days.

What are the advantages and disadvantages of the horizontal and vertical installations, respectively?
Horizontal installations are simpler, requiring lower-cost equipment. However, they require longer lengths of pipe due to seasonal variations in soil temperature and moisture content. Since a horizontal heat exchanger is laid out in trenches, a larger area is usually required than for a vertical system. Where land is limited, vertical installations or a compact Slinky™ horizontal installation can be ideal. If regional soil conditions include extensive hard rock, a vertical installation may be the only available choice. Vertical installations tend to be more expensive due to the increased cost of drilling versus trenching, but since the heat exchanger is buried deeper than with a horizontal system, vertical systems are usually more efficient and can get by with less total pipe. Your GSHP contractor will be able to help you decide which configuration best meets your specific needs.

How can I be sure the pipe is installed properly?
Use a reputable contractor. Don't be afraid to ask for and use references. Reputable dealers and loop installers will be happy to give names and phone numbers for you to call and confirm their capabilities. Find out where the installer received training, whether he or she is IGSHPA-accredited, and how many systems he or she has installed. Also, check with your utility company representative for names of installers. A list of IGSHPA-trained and accredited installers is available on our website.

Is it advisable to install a GSHP system large enough to handle my total heating needs?
GSHP systems are generally sized to meet all your cooling needs. Depending on heating needs, a GSHP system usually supplies 80-100 percent of your design heating load. Sizing the system to handle your entire heating needs may result in slightly lower heating costs, but the savings may not offset the added total of the larger system. Special consideration should be given to systems in the north where multiple capacity units should be considered to handle the large variation between heating and cooling loads. Your dealer/installer should provide a heating and cooling load calculation to guide your equipment selection.

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Environment / Climate:

How do GSHPs protect the environment?
GSHP systems conserve natural resources by providing climate control very efficiently-thus also lowering emissions. GSHPs also minimize ozone layer destruction by using factory-sealed refrigeration systems, which will seldom or never have to be recharged.

What are the environmental benefits of GSHP systems?
Currently installed systems are making a huge difference in our environment! The systems are eliminating more than three million tons of carbon dioxide and is equivalent of taking 650,000 automobiles off the road. GSHP systems conserve energy and, because they move heat that already exists rather than burning something to create heat, they reduce the amount of toxic emissions in the atmosphere. They use renewable energy from the sun, and because the system doesn't rely on outside air, it keeps the air inside of buildings cleaner and free from pollens, outdoor pollutants, mold spores, and other allergens.

Do soil freezing conditions create any problems?
Not if a system is properly designed and installed. The three to four foot depths allow the sun to melt the frozen soil during the summer. Adequate length per ton capacity prevents objectionable soil movement.

Does this mean that in extremely cold climates additional heat sources are necessary?
All systems require an emergency back up. Heat pumps can provide all the heat necessary even in the coldest weather. An economic analysis by your contractor should dictate what portion of the heat should be provided by the heat pump and what portion by auxiliary means.

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Concerning Your Home:

Will my existing ductwork function with this system?
Yes, in most cases. Your dealer or installer will be able to determine ductwork requirements and if any minor modifications are needed.

Will an underground loop affect my lawn or landscape?
No. Research has shown that loops have no adverse effects on grass, trees, or shrubs. Most horizontal installations require trenches about six inches wide. Temporary bare areas can be restored with grass seed or sod. Vertical loops require little space and do not damage lawns significantly.

My yard contains many shade trees. Will this affect ground temperature and my ability to use it as an energy source?
Not at all. The system is installed deep enough that it utilizes constant ground temperature.

Can a GSHP system be added to my fossil fuel furnace?
Yes. Called dual systems, they can easily be added to existing furnaces for those wishing to have a dual-fuel heating system. Dual-fuel systems use the GSHP system as the main heating source, and a fossil fuel furnace as a supplement in extremely cold weather should additional heat be needed.

Will I have to add insulation to my home if I install one of these systems?
Ground source heat pump systems will reduce your heating and cooling costs regardless of how well your home is insulated. However, insulating and weatherizing are key factors in gaining the maximum amount of savings from any type of heating and cooling system.