Building Industry Association
of San Diego

                      The BIA Urban Council presented its white paper on Guidelines for Urban Infill and Redevelopment to the City of San Diego Land Use and Housing Committee at its May 20th hearing.  Urban Council Chair, Marco Sessa was joined by fellow UC member, Sherm Harmer and briefed the committee on the future of development in an Assembly Bill 32 and Senate Bill 375 world. The laws created by the legislation will set green house gas limits and dictate how new construction will be designed to achieve them.

The guidelines offer policy recommendations on urban design, land use and infrastructure needs.  The recommendations were well received by committee members and even the building industry’s most ardent critics said the plan contained elements worth considering. That did not stop them, however,  from offering their opinions on growth in general and the role the BIA plays in advancing policy.  The Guidelines are available on the BIA website under the Urban Council.

We show below the Residential Building Permits issued for all of  San Diego Y-T-D through April.  The numbers are reported by the Construction Industry Research Board.  SFR stands for Single Family Residential.  MFR stands for Multi-Family Residential.   We hope this information helps you figure out where in San Diego activity takes place!  The fourth column to the right shows the change from the prior month.  The numbers are still at historic lows with some jurisdictions reporting no activity.  Yet,  the month of April showed a promising uptick in permit activity!

                                   SFR              MFR           Total        Change

CARLSBAD:             32                 15               47             24

CHULA VISTA:         69                 18               87              61

CORONADO:           14                   0                14               1

DEL MAR:                  0                    0                  0                0

EL CAJON:                4                    0                  4                0

ENCINITAS:            10                    0                10                2

ESCONDIDO:         33                    0                33              14

IMPERIAL BEACH:   0                    0                  0                0

LA MESA:                    0                    0                 0                 0

LEMON GROVE:       1                    0                  1                1

NATIONAL CITY:       8                    0                  8                0

OCEANSIDE:          13                147             160            158

POWAY:                    34                    0               34               11

SAN DIEGO:          104                294             398              56

SD COUNTY:         153                    2             155              55

SAN MARCOS:        15                103             118              11

SANTEE:                   42                    0                42              22

SOLANA BEACH:      1                     0                  1                0

VISTA:                          0                     0                  0                0

TOTALS:                  533                579           1112           415

By Maria Swanson, Weston Mason Marketing & Pete Reeb, Reeb Development Consulting

I don’t need to say that these times are crazy and challenging – but then I guess I just did!  But even in these times there are some exciting things happening around us and for us.

Homes are selling.  Despite all the upheaval of the last few years, single family buyers still want what they’ve always wanted – a nice home in a good location with a good school district.  And urban buyers still want what they want – a great floor plan in a good location surrounded by lifestyle amenities and conveniences.  Oh yeah, and they both want a good deal. So although home sales are still at historic lows, projects that meet these tried and true principles are still managing to generate sales activity. Projects that have sold well over the last six to twelve months include:  Trieste at La Costa Greens (Warmington Homes), Portico at Pacific Highlands Ranch (Pardee Homes), Atlas at Hillcrest (D.R. Horton) and Parc at 54th (KB Home) to name a few. And for those of you who are wondering if the new tax credit available to first-time and new construction homebuyers is stimulating sales – according to the State of California Franchise Tax Board, 1,188 applications equaling more than $11.6 million dollars in tax benefits have been applied for nearing the closing of Q1 2009*.

Change is happening.  With the launch of J.O.I.N., the B.I.A. has successfully orchestrated the attendance of large groups of industry professionals at several City Council and Board of Supervisor meetings throughout the County.  This effort has definitely had a positive impact on policy, fee structure, etc.  And believe it or not, it even stimulated a positive article written by the San Diego Union tribune.  If that’s not change, I don’t know what is!

People are being supportive and working together.  Education and sharing of information has been the theme of the programs and events this year.  The SMC, with the help of BuilderRadio.com, has put together a series of inexpensive educational webinars that are available through www.BuilderRadio.com/SanDiegoWebinars.html.  The B.I.A. Partnership Program has given industry members a way to support the B.I.A. with a one-time offering that in return gives the participant 50% back towards attendance to events and programs.  And this summers Beach Party will be a combined council event so that we can maximize the attendance, maximize the networking, and maximize the fun!

So, lets keep moving forward, let’s stick together, let’s stay strong, and let’s stay positive because good things are happening.

* Data current as of 3/26 per California State Franchise Board website (www.ftb.ca.gov/individuals/New_Home_Credit.shtml)

Did You Know….
Framing…TO HELP YOU BUILD ON BUDGET… Make sure your engineer keeps dimensional “Headers and Beams” (4x material and larger) GREEN, which is standard for “moisture content”. Most lumber suppliers rarely carry larger lumber profiles, like 6×10 “Dry”, that is to say “moisture content” at 19% or less. If you require “Dry” it will push your prices up, and your project completion date out. It is better to modify to Green at your design stage up front with your Engineer. This could save you time, frustration and over 20% of the costs on these items alone!
Roofing … Fiberglass dimensional roof shingles, and clay and concrete roof tiles come in “Title 24” cool roof friendly colors. This might help with your energy calculations on your next project.
Plaster… Applying 2 layers of 60 minute paper is a good defense against water intrusion.
Insulation ….Red fire foam should be used at penetrations between floors, not basic expanding foam.
Fiber Cement Lap Siding – The only GREEN product of Fiber Cement lap siding and panels is WeatherBoards.  The FiberCement formula replaces silica with fly ash, a green raw material, and incorporates a majority of wood fiber from sustainably-managed forests.  In the manufacture of our FiberCement we recycle the water that is used in our facilities, saving more than 1.5 billion gallons of water per year.  It contains more than 30% pre-consumer recycled material which contributes directly to LEED and NAHB project certification in the Materials and Resources and Resource Efficiency categories and is ICC Building Code approved (ESR-1668).
HVAC…Neglecting the details of your HVAC “Has Very Adverse Consequences”…..It is very common to overlook the HVAC implications on the structure. Too often the Structural Engineer has never seen the HVAC layouts, equipment descriptions or proposed location. If the HVAC designer is introduced to the construction team too late, the consequences may be very costly! Numerous trades are affected and the modifications during construction can get complicated. It is best practice to have the HVAC designer involved at the design stage.

….Intumescent calk expands up to 10 times it’s size during the heat of a fire and closes up openings in walls, thus containing smoke and flames. Concrete that cures with high compressive strengths so quickly, that an airplane can land on it within an hour of being placed.  Cement based mixtures such as Xypex and KOESTER which can be applied to the negative side (the inside of a room; NOT the dirt side) of a block wall to fix a leaky basement, caulk such as Flexible Seal will fully cure, even while submerged in water
PASS BOOKS… are now available on line at www.biasandiego.org,click on Members ONLY,enter your company Name and ID number,click on the 2009 PASS Directory. (If you need your ID number, contact the BIA San Diego Membership Department at 858-450-1221.

Meet the Builder was such a success in San Diego, the next MEET THE BUILDER EVENT will be a joint effort with San Diego and Riverside BIA’s at Ponte Winery in Temecula on July 6th. www.biasandiego.org, click on events.

By Peter F. Dennehy, Senior Vice President; Sullivan Group Real Estate Advisors

The BIA Cares Board would like to thank our fellow BIA members and ‘friends of Cares’ for their continuing support.  Despite extremely challenging economic and market conditions, the local building industry has continued to contribute its time, labor, materials, and financial donations to BIA Cares. The Cares Board will continue to work hard to find new ways to meet those needs and to raise money to donate in the community on behalf of the building industry. If anyone is interested in helping out with BIA Cares activities, please contact Laura Wilson (Corky McMillin Companies) at lwilson@mcmillin.com or 619.794.1325.

To update you on current activities:

Fundraising:

The Buick Invitational Golf Tournament was held at Torrey Pines Golf Course from February 2 to 8th, 2009. Through the Tournament’s “Chip in for Charity” program, charitable organizations and schools are allowed to sell tickets and keep 100% of the proceeds to fund their activities. Tickets good for a one-day entry on any day of the tournament are sold by the participating charity at a reduced price. BIA Cares participated for the second time this year.  Thanks to the special efforts of Nancy Diamond (BIA staff), BIA Cares sold over $1,000 worth of tickets to the 2009 Tournament. Look for details on this program next year in the membership packets starting in the Fall and plan to buy your tickets for the 2010 Tournament through BIA Cares. 

BIA Cares held their first Furniture Fantasy rummage sale in August 2008 and raised over $35,000 in a one-day sale of donated model home and office furniture. A second Furniture Fantasy sale is now being planned for August 29, 2009. Builders, designers, decorators and others with home or office furniture to donate are welcome and encouraged to contact BIA Cares. Donations are now being accepted – BIA Cares can even make arrangements to pick up donated items and store them until the time of the sale.  So, if you are closing out a model complex and will not need items or you are clearing showroom or warehouse space, please consider this event and donate your items to BIA Cares.  As an added bonus, we are adding an industry “Bash” prior to the event to give volunteers and BIA member employees first pick of the merchandise before it goes on sale to the general public.  Watch for details.

BIA Cares’ will host the Third Annual Industry night at the Padres on August 6, 2009, against the New York Mets. This fund-raising event is geared toward BIA member companies and their employees as an industry-wide networking and incentive event.   This cost is $50 per person and will include your ticket, a ticket for an underprivileged child, a pre-game social on the upper deck, Picnic Terrace, that overlooks San Diego Bay and the Coronado Bridge, plus beer, wine, hot dogs, chicken, fruit, potato salad and sodas. Members are encouraged to purchase additional tickets for needy kids at $15 each or 10 tickets for $150. 

Other events are being investigated to raise dollars for BIA Cares.

Charitable Contributions:

The BIA Cares Holiday Bike Drive took place as usual during the 2008 Holiday Season. Thanks to your donations, BIA Cares provided bicycles and helmets to 250 underprivileged children in San Diego.  Thanks again to Eric Jones (Urban Real Estate Services) for chairing this annual holiday event. 

BIA Cares will again donate $600 in awards for winners with building or construction related projects in the Greater San Diego Science Fair, held April 1.  This is the 8th year we have sponsored this and the three awards will be given. Several  BIA  Board members have volunteered to judge the event.

BIA Cares funded a $1,000 scholarship to help establish and fund a math, science, engineering elective class at Correia Middle School in the Pt. Loma/Ocean Beach Community.

BIA Cares has agreed to donate up to $10,000 in time and money to help with refurbishments to the Chula Vista Little League ball fields. BIA Cares raises funds for this project with their annual Industry Night at the Padres. Bids are now moving forward for repairs that will include new stairs for the scorekeepers, repairs to the roof and new backstops.  Boyd Masing (Hammond Masing General Contractors) is also seeking in kind donations of labor and materials to complete the project. The work is being done at Reinstra Sports Park in Chula Vista (Max and Orange Avenues).

BIA Cares has donated $20,000 and Howard and Associates has contributed $5,000 worth of in-kind design services towards a Tot Lot at Kennedy Park .  The tot lot is in close proximity to an adult education center and is a project that will be constructed with the Cajon Valley School District and the El Cajon Parks District.  The ground breaking is anticipated for early summer.

If you have a worthy project request, please submit to John Howard (Howard & Associates) for consideration.

2009 BIA Cares Scholarship Committee:

In an effort to assist students seeking building industry careers, the 2009 BIA Cares Scholarship Committee is currently offering scholarships for students at both the high school and college levels. We are looking for students who can demonstrate an interest in pursuing a career in the building industry. Many majors such as advertising, finance, construction management, architecture, carpentry, city planning, real estate and interior design, to name a few, play an integral role in the building industry. Scholarships will be awarded based on qualifications including academics, personal achievement and financial need. 

If you have any questions about the scholarships or are interested in being a committee member, please contact Nancy Diamond at the Building Industry Association (858) 450-1221 or email Nancy at nancy@biasandiego.org.  Nancy will forward your questions or interest to the Scholarship Committee.

Tuesday, May 19th:

Last night, the City of Carlsbad introduced a key J.O.I. N. Campaign related economic stimulus measure by approving an ordinance to increase the life of Tentative Maps and Tentative Parcel Maps from 2 years to 3 years.  The ordinance applies to Tentative Maps approved after the effective date of the ordinance, which is expected to be June 2nd when the ordinance is adopted.  The ordinance will last for three years unless the council decides through a subsequent action to extend or end the ordinance.  The passage of the ordinance in no way conflicts with automatic extensions granted by the state which are in addition to the initial life of Tentative Maps.

BIA is pleased to share that Brookfield Homes of San Diego joined the Partnership Program and by this action rounded off the total list of program participants at one hundred companies.   The Partnership Program raised $209,000 in its first year of activity.  This is a great result.   The program is designed to provide BIA with additional working capital.  Contact us if you want to learn how you can help BIA continue to do its good work on your behalf!

AB 333 (Felipe Fuentes) moved one step closer to the Governor’s desk last week with the approval of the State Assembly Local Government Committee. The bill is shaping up to be a 24-month extension with an urgency clause being added making the extension effective upon the Governor’s signature. CBIA’s goal is to move the bill through the legislature as quickly as possible and try to put it on the
Governor’s desk by the middle of July.

On Thursday night, April 30th, the Escondido Union School District voted to decrease school fees by 27% from current fee of $3.02/square foot to $2.19/square foot. The construction of a typical 2,400-square-foot home in the school district will save close to $2,000 in fees with this action. Escondido Union joins a growing list of 50+ cities and districts throughout the state to lower fees, defer fees and take aggressive actions to help stimulate the construction industry.  They deserve commendations for their pro-active and conscientious efforts.