789 NAHB Homework : Programs to Assure Workmanship Backed

The 45th annual convention of the National Assn. of Home Builders, which ended here last week, featured the usual gaggle of economists, congressman, designers and housing gurus. A record 68,000 builders and other professionals showed up to attend educational panels and, many hoped, to make a few deals for the year ahead.

But some of the most important stories--or at least some of the most interesting ones--weren’t found at press conferences or panels. Instead, they were found on the floor of the mammoth exhibition that is part of the annual show and in the hallways of the Georgia World Congress Center, where the convention was held.

One Washington insider rejected builders’ claims that tax deductions for mortgage-interest payments may be scaled back, but said another cherished break for homeowners is in jeopardy (see story on this page). Consumers who’ve been burned by incompetent remodelers will be happy to know that the industry is trying to clean up its act, while a little-known program that teaches construction skills to young people and then helps them find jobs is having a banner year.

Some Japanese journalists who covered the convention say a growing number of Tokyo builders are “importing” American designs, while some Southland builders went home envious of Atlanta’s mass-transit system.

It seems that nearly every homeowner who has hired a remodeler can tell a horror story about a contractor who didn’t show up on time or turned a two-week job into a summerlong event. Even owners who’ve had pleasant encounters with remodelers can usually relate a not-so-pleasant tale about a friend’s renovation job.

In an effort to shore up the industry’s reputation and make it easier for consumers to choose a reliable contractor, the Remodelors Council of the NAHB is launching a certification program that it hopes will distinguish the good remodelers from the bad.

To become a “certified graduate remodelor,” or CGR, a contractor will have to have at least five years of professional experience and score well on an application that measures everything from his insurance coverage to the time he has spent providing non-building community service. At least three letters of reference must also be submitted.

Depending on how well the remodeler scores on the application, he must also take at least three and as many as nine educational courses. Each course costs about $150 and focuses on a different topic, from business codes and standards to cost-estimating.

Seal of Approval

Once the course work is completed, the remodeler can apply for certification.

“We’re trying to remove the stigma of the ‘suede shoe’ operators,” says Cynthia Milloy, a Maryland-based remodeler who has helped pull the certification program together.

Milloy hopes the new program “will eventually become something like an industry seal of approval for remodelers . . . like ‘AIA’ is for architects” or MAI is for appraisers. If you see CGR behind a remodeler’s name, you’ll know he’s got something on the ball.”

While some exhibitors at the annual show rely on pretty showgirls or flashy displays to attract attention, the Home Builders Institute depends on its reputation for producing hard-working, well-trained construction workers to attract visiting builders to its booth.

The little-publicized institute is the NAHB’s educational arm. It turns 15 years old this year, and has become a key participant in the nationwide Job Corps program run by the U.S. Department of Labor.

People who sign up for the institute’s free vocational-training program can learn one of 10 construction trades, from carpentry to landscaping. Many of today’s Job Corps centers are former government installations, such as closed military bases, where the trainees hone their skills by rehabilitating older structures or building new ones.

Although the program is open to everyone, most of the participants are high school dropouts who have had trouble finding a good job, or young people who simply can’t afford to attend college or trade school.

Paid During Training

As part of the HBI’s program, students can also get help in math, English and other subjects needed to obtain a certificate that’s the equivalent of a high school diploma.

Fred Day, the institute’s national coordinator, says trainees are paid $100 a month and also given room and board at the Job Corps centers. When they can show sufficient expertise in their chosen field--typically, after a year’s training--they get an additional lump-sum payment of $1,200 and a box of tools.

Importantly, Day says, the institute then refers them to a builder who needs someone with entry-level construction skills. Most of the jobs pay between $5 and $7 an hour, although a few pay as much as $12.

Apprenticeship Program

“When we started this program back in the ‘70s, we were only placing a few hundred kids a year,” said Day, shortly after talking to a builder who asked for 10 Job Corps graduates for a new Maryland housing tract.

“But just from the contacts we’ve made out of this show, we’re going to place more than 1,000 kids in jobs. That’s a record for this convention.”

The institute also offers a four-year apprentice program that can lead to higher-paying journeyman’s wages. People who are interested in entering the program, as well as builders looking for skilled laborers in their area, can get more information by calling the institute’s toll-free number: 800/368-5242.

For years, Japanese companies have been buying up large numbers of U.S. buildings. Now, a few have begun “importing” American designs for the homes they’re building in Tokyo.

The first two Tokyo housing tracts designed by U.S. architects will open this spring, according to Sachiko Hijikata, a reporter who covered the convention for a Tokyo-based housing magazine.

The Japanese “like many things about American houses--bay windows, oak floors, balconies,” Hijikata said. “Also Jacuzzis, health machines and decks for barbecues. Very American-- very nice.”

Still, don’t expect to see Levittowns springing up soon in Japan. Even the smallest house in Tokyo now sells for the U.S. equivalent of $1 million, says Hijikata, and the much larger, much nicer American-style homes are even more expensive.

Shortage of Wood

Compounding problems: The severe shortage of wood in Japan and the high cost of importing it. Most American homes make extensive use of wood, while homes in Japan use little of it.

Some Japanese builders would like to see their government make it easier to import lumber, says Hijikata, a move that could also make wood cheaper and thus bring down the cost of new housing. But economic experts say such a move is linked to complex international trade concerns, so the barriers that prevent Tokyo builders from importing more lumber won’t be falling soon.

Some statistics may help put the sheer size of the builder’s show in perspective. The crowd of 68,000 was more than four times the number who came to the same spot for last summer’s Democratic National Convention, and nearly three times the size of the annual National Assn. of Realtors’ gathering.

The builders stayed in nearly 22,000 hotel rooms in about 100 different hotels. The Los Angeles Convention Center would need to be roughly three times its current size to handle the trade group’s requirements for meeting rooms and exhibition space.

The financial benefits that Atlanta is expected to reap by hosting this convention and the ’90 and ’91 shows are also impressive. The three events are expected to pump a total of $142 million into the city’s economy, according to NAHB estimates.

Other than the traffic gridlock that occurred outside the convention hall in the early mornings and late afternoons, the convention went off without a hitch. Builders from Southern California were particularly impressed by Atlanta’s mass transit: A modern subway train picks up passengers from the airport and, for 85 cents, travels the 15 miles to downtown in about 20 minutes.