Southern Nevada Home Builders Association: Article 3

SNHBA: More Than 50 Years of Leadership in the Community

For more than 50 years, the Southern Nevada Home Builders Association has been a leading organization in the governmental and public affairs of Nevada.

SNHBA, with more than 550 members, is actively involved with numerous issues, ranging from cost control to environmental protection, which impact the homebuilding industry, homebuyers and homeowners. That involvement includes lobbying and advocating on the local, state, regional and federal levels.

“The Southern Nevada Home Builders Association has done a fantastic job in all facets of educating and lobbying for the local homebuilding industry and homebuyers,” said longtime member Dennis Smith, founder and president of Home Builders Research of Las Vegas, a company that tracks the housing market. Smith is a longtime member of the SNHBA board of directors, and the recipient of an “Associate of the Year” award for outstanding service to the association and industry

“SNHBA has been, and will continue to be, an integral part of the Southern Nevada community,” Smith added. “The association’s leadership, and Irene Porter, the executive director for more than 30 years, have more knowledge and experience than anyone I have come across in this market. The association is responsible for making sure that our local homebuilders and other industry professionals keep up with the issues facing them in government every day.”

Irene Porter, representing SNHBA at every Nevada legislative session since the mid-1970s, is among the first inductees in the Nevada Legislature Lobbyist Hall of Fame. Fellow lobbyists named her “Lobbyist of the Year” in 1991 for her outstanding effectiveness at the Legislature of behalf in Nevada’s homebuilding industry and its homebuyers.

Powerful Partnerships

“The Southern Nevada Home Builders Association has a long history of working toward responsible and reasonable solutions that benefit their members and, ultimately, the community,” said Carole Villardo, president of the Nevada Taxpayers Association, which has often worked with SNHBA on issues of mutual concern, such as fair taxation; funding for public infrastructure, transportation and schools; environmental mitigation requirements, such as the multispecies habitat conservation plan; impact fees and building-department enterprise funds.

“Irene Porter, the leadership and staff of SNHBA are responsive and committed to their membership to work with all interested parties, and to arrive at solutions for the many issues that face a growing community, from our infrastructure needs to lifestyle enhancements,” Villardo said.

In addition to the Nevada Taxpayers Association, SNHBA has worked with numerous other organizations, forming powerful and effective partnerships and coalitions, to find common ground to resolving problems and challenges facing the construction industry and the community.

In particular, SNHBA has partnered with other industry trade groups, such as the Associated General Contractors, Associated Builders and Contractors, and the Nevada Subcontractors Association, to work on solutions for issues ranging from dust-control, mechanics lien law, right-to-repair in construction dispute cases, revisions and modernizations of industry codes and standards, and developing educational programs to benefit its members, to name just a few.

In 2005, Associated General Contractors presented SNHBA with its prestigious Skill, Integrity and Responsibility (SIR) Cornerstone Award “for foresight and fiscal responsibility in initiating projects that make Southern Nevada a better place to live.” Specifically, AGC honored SNHBA for its partnership role in bringing to the local community the 2003 International Energy Conservation Code, a stricter energy code governing the construction industry.

SNHBA, AGC and the local building departments worked for about one year to put together a version of the International Energy Conservation Code, which would be applicable to building conditions in Southern Nevada, such as the area’s soils and weather.

Environmental Stewardship

SNHBA is also proud of its leadership role, and partnerships, to develop dust-control policies for the Las Vegas Valley, starting in the mid-1990s. Southern Nevada’s dust-control regulations rank as the most stringent in the nation, serving as a model for other communities across the nation, and garnering public praise and recognition from the U.S. Environmental Protection Agency. The regulations cover not only construction sites, but other sources of dust such as vacant land and unpaved roads.

The Southern Nevada Building Industry Coalition for Air Quality, which spearheaded the efforts, included Associated Builders and Contractors, Associated General Contractors, the Concrete and Aggregate Association, Del Webb Corp., the Howard Hughes Corp., National Association of Industrial & Office Properties, the Nevada Contractors Association and SNHBA.

Over the years, SNHBA has received a number of prestigious awards and recognitions for its work on environmental issues, particularly dust control.

They include:

• A Public Health Week CARE Award (Clean Air Recognition Effort) for efforts with its industry partners to positively affect the air quality and public health in Clark County, and an Air Quality Improvement Award for leadership in dust control, both from the Southern Nevada Health District.

• A Special Proclamation for outstanding service to the community, along with the industry partners, from the Clark County Commission for “cooperative efforts with county agencies to ensure that stringent and reliable dust mitigation practices have been adopted and will be adhered to.”

• Public praise from EPA Assistant Administrator Jeffery Holmstead for “impressive and unique” efforts to help Clark County develop successful clean air policies.

• A Recognition Award for ongoing commitment to the preservation of Nevada’s natural heritage from The Nature Conservancy. SNHBA is a member of the Conservancy.

• A 1st Place Award for the desert landscaping at the SNHBA building from the Southern Nevada Water Authority.

Watching Water

SNHBA and the Water Authority partnered in the mid-2000s to develop the Water Smart Home program, the first program of its kind in the nation, to certify that qualifying new homes and neighborhoods exceed water conservation and efficiency codes and standards. Homebuyers can save as much as 75,000 gallons of water per year in Water Smart homes.

In recent years, SNHBA has raised the bar on the local homebuilding industry’s involvement in the environment.

Green Building

SNHBA and the Green Building Initiative of Portland, Ore., joined forces in 2005 to bring more environmentally sensitive homebuilding to Southern Nevada. SNHBA and GBI formed the Southern Nevada Green Building Partnership; together, they developed the program requirements for a green building program to serve the needs of production homebuilding in Southern Nevada via the efficient use of resources, materials, energy and water; and to maximize the indoor environmental quality in new housing. Also, requirements include educating homeowners about the operation and maintenance of their green home.

There are six local homebuilding companies participating in the program: Concordia Homes, Pinnacle Homes, Pulte Homes, R/S Development, Signature Custom Homes and Signature Homes.

The Partnership provides technical expertise to help local builders implement the requirements; administers an impartial third-party inspection and verification, which ensures the program requirements have been met; and issues certification that a home has been constructed to the green building requirements.

Homeowners have already moved into these green-built homes at Pulte Homes’ Timber Creek community, and are reaping numerous benefits, including utility savings, improved indoor air quality and less overall long-term maintenance of their homes. This can translate directly into cost savings, as better equipment, lighting, windows and insulation reduce energy consumption.

The local Partnership program is based on the National Association of Home Builders’ Model Green Home Building Guidelines, but were customized to meet the special conditions of the Southern Nevada environment.

Quality Construction Counts

NHBA is one of the nearly 850 affiliates of the NAHB, a Washington, D.C.-based, 235,000-member trade association, which aims to enhance the climate for housing and the building industry.

SNHBA is also proud of the role it has played to raise the bar on verifiable, quality residential construction in metropolitan Las Vegas. SNHBA is the first affiliate of the National Association of Home Builders to coordinate the NAHB Research Center's National Housing Quality Trade Contractor Certification Program in the local area.

Through this innovative training program, residential trade contractors in Southern Nevada can become certified in quality assurance methods designed for homebuilding.

Some 100 local trade contractors have achieved certification in the program. They have stated that they're spending less time correcting errors and more time building homes. They also report the following benefits: Increased productivity, trained field personnel, reduced or eliminated callbacks, reduced exposure to litigation, tighter schedules and reduced cycle time, and achievement of the highest level of customer satisfaction.

The National Association of Home Builders has presented SNHBA with five Association Excellence Awards over the past decade, including one for the Quality Assurance Program, and others for membership communication and service.

SNHBA Mission

SNHBA is the oldest and largest trade association serving the residential construction industry in Nevada. Founded in 1953 by 12 local homebuilders and incorporated with the State in 1954, the association’s members work in all facets of the homebuilding industry.

SNHBA shares the goals of the national association: Providing and expanding opportunities for all consumers to have safe, decent and affordable housing.

Members include the largest, mid-size and small homebuilders operating in the Las Vegas Valley, and other companies involved in residential construction.

SNHBA’s 2008 President Mick Galatio explained the Mission of the association:

“The Southern Nevada Home Builders Association is dedicated to enhancing the quality of life by meeting the housing and community development needs of Southern Nevada. It is the associaton’s mission:

“Promote community attitudes that will ensure the viability and success of the home building industry.

“Combine individual talents and resources to provide leadership addressing challenges affecting our industry.

“Implement programs to advance membership, education and involvement in our association.”

The association’s motto is, “Those who Belong….Care!”

Government Relations

Galatio said he has seen significant changes over the past 14 years of involvement with the association. He said the association’s government relations’ department is the primary area to evolve and grow. “Ten years ago, jurisdictions did not have as many requirements as they do today. More regulations have been put on homebuilders as growth in the valley has taken place. We work hand-in-hand with numerous government officials and agencies to ensure a smooth process for both homebuyers and homebuilders. We represent the industry and the consumer,” said Galatio.

The association estimates that various governmental requirements, permits, fees, charges and exactions represent about $54,000 in the price of a new home as of 2006, up significantly from $21,000 in 1999.

In addition to lobbying government in an attempt to keep these costs down, while meeting the industry’s obligations to the community, SNHBA developed a very innovative public-private educational partnership in 2001 and 2002 with the Clark County Comprehensive Planning Department, “Take A Walk in Their Shoes Leadership Program.” Homebuilding industry reps and the county planners reversed roles, and worked for nearly a year on a simulated residential development, learning about the challenges and rewards of each other’s work.

The American Society of Association Executives named SNHBA to its Honor Roll for the “Take A Walk in Their Shoes” Leadership Program, in cooperation with Clark County government, as an “outstanding program, which has resulted in significant benefit to American Society.”

Educational Offerings/Events

The association’s education programs continue to evolve and improve, Galatio said.

SNHBA is approved to present the NAHB University of Housing classes, including the Institute of Residential Marketing classes, which upon completion, leads to the prestigious MIRM, or Member of the Institute of Residential Marketing designation, and the Certified New Home Sales Professional classes.

“The high quality of the educational courses offered by the Southern Nevada Home Builders Association is drawing attendees from throughout the United States. Professionals are coming from as far as Hawaii and Rhode Island to take the classes at SNHBA,” said Roger Fiehn, a principal instructor with the NAHB University of Housing. “SNHBA is to be commended for delivering quality, effective education for the SNHBA membership, and other NAHB members,” Fiehn said.

SNHBA, with corporate partner Southwest Gas Corp., sponsors the annual Southern Nevada Housing Day. It’s the largest gathering of the year of the local real estate industry. Some 1,000 attendees turn out for the Housing Outlook industry/economic forecast, featuring Dennis Smith of Home Builders Research Inc., followed by the SNHBA Builders Show, a trade show with some 80 exhibitors representing national, regional and local product manufacturers and distributors.

The association’s newest event is the “SNHBA Building Industry Environmental Fair/Membership Mixer” in the month of June, which features and highlights its members, and governmental agencies, involved with environmental products, services, regulations and programs.

The Market

But the main topic on everyone’s mind is the slowdown in the housing market compared with the boom years of 2004-2006.

So, SNHBA brought the NAHB “It’s a Great Time to Buy a New Home” advertising campaign to Southern Nevada to promote sales of members’ new-home communities. The campaign is featured on the home page of the association’s Web site, www.snhba.com. It is also running in member publications, the Las Vegas New Homes Guide, and Homes and Living magazine. With guidance from its public and government relations agency, R&R Partners, the association purchased consumer-oriented Internet domain names, www.VegasNewHome.org and www.VegasNewHome.com, which are forwarded to the association’s Web site. There, visitors find information about SNHBA members who can help homebuyers find a new home in metropolitan Las Vegas. R&R continues to guide SNHBA during the slowdown.

“The future for the Southern Nevada homebuilding industry is definitely looking up,” Galatio said. “We have another tough year ahead of us, but we are all hoping and predicting the large inventory of resales and foreclosed houses on the market will be absorbed in the very near future.”

Galatio added that local builders are not constructing a large number of homes at this time; therefore, the demand for homes will definitely come close, or surpass, the supply of homes once the community experiences a population boom in the next two years as people move to Las Vegas to staff the new resorts going up on the Strip.

Galatio’s predictions are based on the results of a special study and report, “Southern Nevada Housing Supply-Demand Analysis,” by Jeremy Aguero, principal of the respected market-research company, Applied Analysis. SNHBA commissioned the study and report in early 2007 to have accurate, reliable data about historic, current and future housing market conditions for the association and its members.

“It truly is an excellent time to buy a home,” Porter said. “It’s the best buyers’ market I’ve seen in more than 20 years. People who could not purchase a home three years ago can do so now. There is tremendous opportunity for buyers at every income level to buy a home or condo.”

SNHBA is bullish on the future of the local housing industry and the community.

“Our region is thriving, and will continue to thrive, with business growth, economic diversification and quality of life, Porter said.

“SNHBA will continue to be at the forefront of supporting this growth, and providing homes for our new neighbors moving into the community. The Southern Nevada Home Builders Association, and the local homebuilding industry, will continue to work to meet the housing needs of this community.”

Professional freelance writer Ashley Massi contributed to this story.