Association Maximization

2012 IBS: "And the 2011 Winners Are...."

2012-02-12T06:35:00.000-05:00

The 2012 International Builders Show delivered as promised. Spectacular exhibits, educational courses that are second to none, close to 10% increase in attendance fro 2011 and that high quality, professional effort from our staff members.

Our leadership team of the 2012 senior officers were installed and we thank them for their dedication to all our members in their efforts to defend all of our businesses. Three officers in particular should be recognized; Bob Jones, the 2011 immediate past chairman, Bob Nielsen, the new immediate past chairman and Barry Rutenberg, our 2012 chairman of the board. Once NAHB.org has been updated to include the entire team, with biographies and pictures, I will post.

Meetings during the week were highly productive, with volunteerism ever present, and our 2011 board of directors wrapped up the week with thought provoking conversation and direction. While certain initiatives were not voted on to move forward the discussions for some were, if not eye opening, certainly needed. (To read about the associate senior officer proposed by-law amendment click here > Associate senior officer )

I personally left IBS 2012 with a good feeling for the future of our Federation and a re-energized determination to help affect positive change in our industry.

One of the volunteer members highlights of the week came on Thursday morning, February 9th, at our annual Associates Awards Breakfast, with many in attendance, builder and associate as well as HBA staff from across the country and the event was held at The Peabody Hotel in Orlando, Florida

This year's group of honorees has demonstrated that actively engaged associates will keep on providing the deeply needed dedication that helps to keep our Federation of local and state HBAs at their best. Within NAHB these individuals were, and are, recognized for their accomplishments because they realize that "if 'it' affects builders 'it' will affect associates."

The 5 awards/inductions are;

1. Associate of the Year

(Presented to the most outstanding associate member for his/her dedication and proactive leadership at the local, state and, with heavy emphasis, the national level. The voting is based on a points system with past winners and builders as the judges.)

2. Bill Polley BUILD-PAC Award

(The associate member who's dedication in political fund raising efforts and helping to expand the importance of political action. The award was named after Bill Polley. Bill passed away several years ago but his political activism lives on.)

3. Induction into the Society of Honored Associates

(3 of 4 finalists for Associate of the Year)

4. The B.E.A.M. Award

Given to the builder who best exemplifies NAHB's motto "It's good business to do business with a member." BEAM stands for Builders Engaging Associate Members

5. The Chairman's Award

Given to an associate who went"above and beyond the call of duty" on behalf of the Associate Members Committee.

Drum roll please.................

"2011 ASSOCIATE OF THE YEAR"
Lanny Tillery, CGA, CGP, CAPS
Whirlpool Corporation
Arkansas

"2011 BILL POLLEY BUILD-PAC"

Michael LeCorgne, CGA, CGP, CSP

2-10 Home Buyers Warranty Corporation

Louisiana

"2011 SOCIETY OF HONORED ASSOCIATES"
Jerry Cowan

Builders Mutual Insurance Company

North Carolina

"2011 SOCIETY OF HONORED ASSOCIATES"

Monica Sommerfeldt Lewis, CGA

Archer Lion Inc.

Wisconsin

"2011 SOCIETY OF HONORED ASSOCIATES"
H. James Lowe

Land Title Guaranty

South Dakota

"2011 B.E.A.M. AWARD"

Bill Asdal

Asdal Builders, LLC

New Jersey

"2011 CHAIRMAN'S AWARD"

Ann Hagen

Bonded Builders Warranty Group

Florida

The NAHB members, from around The Federation, congratulate you. Bravo!

I encourage associates from all over the country to make sure your state HBA submits names to NAHB staff member Betty Thweatt (bthweatt@nahb.org). Betty will send to you the forms needed for submission. It is a great way to make sure the country knows who you are proud of back home.

Submitted by:

Michael Kurpiel, CGA, CGP
2011 NAHB Associate Members Committee Chairman

"At the Goal Line"

2012-01-29T06:56:00.001-05:00

Super Bowl Sunday is a week away and with it comes the thoughts that after a long season a team will achieve its quest and the other will have to "wait until next year" for another opportunity. But in order to get this far takes complete team work with an aligned desire that is fueled by passion.
Teamwork, players working together.

NAHB is similar in that when there is a desired outcome to a direction, members and staff will work together. There has been considerable, and very passionate, conversations regarding a proposed bylaw amendment, from NAHB's National Area\Associate Chairmen (NACs), that creates an associate senior officer NON-voting, NON-ladder position. Conversations have taken place on social media sites, within NAHB's area caucuses that bring members from different regions to discuss NAHB initiatives before voting at the national board meeting, during state and local HBAs board meetings and other platforms where members discuss association business.
We need to thank all the NAHB members, builders and associates and staff, local and state, who have helped to bring about the groundwork for a desired outcome. Thirty-six HBAs from individual states, as well as Puerto Rico, are supporting the NACs' proposed by law amendment; this is truly an amazing number. When you look at the membership total that each HBA's board is representing, you will see that 113,444, or 78% of the Federation, members would like to see this proposed bylaw amendment passed at the 2012 International Builders Show.

HBA of Alabama representing 8,069 members
HBA of Delaware representing 360 members
Florida HBA representing 6,633 members
Louisiana HBA representing 4,922 members
HBRA of New Hampshire representing 614 members
New Jersey Builders Association representing 900 members
New Mexico HBA representing 1, 936 members
Michigan AHB representing 4,600 members
Pennsylvania Builders Association representing 6,647 members
HBA of Virginia representing 3,648 members
Wisconsin BA representing 5,274 members
HBA of West Virginia representing 762 members
The HBA of Connecticut representing 913 members
HBA of Illinois representing 1,630 members
Arkansas HBA representing 1.354 members
New York State BA representing 2,285 members
BA of Minnesota representing 2,886 members
Oklahoma State Home Builders Association representing 2,316 members
Idaho Building Contractors Association representing 946 members
Colorado Association of Home Builders representing 1,693 members
HBA of Georgia representing 3,596 members
Indiana Builders Association representing 3,104members
Puerto Rico representing 70 members
Montana Building Industry Association representing 1,450 members
Home Builders Association of Kentucky representing 6,191 members
Texas Association of Builders representing 9,107 members
Oregon Home Builders Association representing 3,264 members
Home Builders Association of Alaska representing 709 members
Home Builders Association of South Carolina representing 3,381members
North Carolina Home Builders Association representing 12, 394 members
Massachusetts Home Builders Association representing 1,242 members
Utah Home Builders Association representing 1,505 members
Nebraska State Home Builders Association 1,128 representing members
South Dakota HBA representing 1,656 members
Tennessee HBA representing 3,082 members
HBA of Mississippi representing 2,203 members
Southern Nevada Home Builders Association representing 974 members

I would very much like to personally thank each and every one of you for your dedication and hard work; your desire for success will carry the day.

Submitted by:

Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chairman

2009-2010 NAHB National Associate Chairman

"I Have a Question...."

2012-01-22T07:08:00.008-05:00

"Being ignorant is not so much a shame, as being unwilling to learn." ~ Benjamin Franklin

Another saying goes, and I paraphrase, "If ignorance is bliss that explains a lot of happy people."

Now you're thinking, "uh oh," and before you think that I'm going off on an irrational rant read below a definition of ignorance from Merriam-Webster's Online Dictionary:

ig·no·rance

[ig-ner-uhns]

noun

lack of knowledge, learning, information, etc.

Ignorance, at its highest level, is rejecting or condemning something you know little or nothing about. Why is this my discussion topic in this week's blog? I am a member of multiple groups on such social media vehicles as LinkedIn and Facebook. I deeply enjoy the discussions but some are based on pure ignorance of a subject matter, specifically, The National Association of Home Builders (NAHB). While I'm not an expert on NAHB, I have been involved with leadership decisions that help form strategy and then direction, for our members, on behalf of the industry. True, I have the one opinion, the one voice, in each decision, among the many. The fact that I am at the table and understanding our issues is what's at play.
I read posts about NAHB that demonstrate what national is working on, towards helping our industry recover from the worst housing depression in our lifetime. I then read posts from people who are not members or were members and speak, out of ignorance, about the lack of effort given by NAHB. One person, a non member, stated "what NAHB needs to realize is that they just don't represent their members they represent the entire industry." Policies they promote effect everyone, not just members." Now I have heard this about my home state HBA as well and I'm quite sure other state HBAs have had their share of naysayers.

It is so easy to criticize from the comfort of a computer, being a Monday Morning Quarterback, questioning every decision without being in the game. Quite frankly, I will listen to someone's opinion, share my thoughts, and hopefully we can at least agree to disagree. When it comes to the home building industry, with the business pain we have all experienced, it's easy to let emotion jump over intelligence (I'm as guilty as anyone), in the pecking order of reasonable conversation. But when someone is not involved, at their local or state let alone NAHB, and they opine about the lack of new construction and place the blame on NAHB, I become amazed. How do you have a reasonable conversation when one side of the argument has little to zero knowledge of the subject? Keep in my the subject I am referring to is NOT the industry but NAHB.

Before we go any further, let me state, for the record, when you try and enlighten those in the dark about NAHB, most NAHB critics will dig their heels in deeper and ignore what others, who are engaged members and in the know, are trying to teach.

They have little knowledge of our national committees where members from across the country offer opinions that will hopefully develop strategy(ies). They have little knowledge of BUILD-PAC and the power of one voice in Washington. They have zero knowledge that these members are their building industry peers with one exception; the members invest time and dollars in NAHB, the non members are what we refer to here in New Jersey as "free riders."

I may not always agree with NAHB, and those that know me will say that I will speak my piece. However, once a direction is taken, and a majority vote takes place, I know the worst thing to do is to "go public" and show any divide in our initiative. Remember, politics drives our industry, and our legislators, who are being bombarded by all industries, will only become confused if there are multiple solutions form multiple builders.

I recommend, that before you speak out and demonstrate your ignorance, with regards to NAHB, that you become a member, then become involved within leadership. If you are unhappy with decisions, make your voice heard, not in social media groups, but where the decisions are actually taking place.

Association Maximization has many posts dedicated to understanding the value of being a member, the path to leadership, as well as the need for advocacy. Please read them at your leisure. Hopefully you will become involved. Once you understand the mechanics of corralling an entire industry, with hundreds of thousands of voices, and funneling it through to one voice, you will no longer be ignorant of NAHB. You still may disagree but you'll disagree with knowledge.

Submitted by:
Michael Kurpiel, CGA, CGP
2009-2010 National Associate Chairman
2011 NAHB Associate Members Committee Chairman

"How to Tell Story of Homeownership"

2012-01-15T07:35:00.001-05:00

This year, Association Maximization, along with posts to help the NAHB member understand their return on an HBA investment and posts to help educate and add to professional development, will feature guest bloggers from different areas of NAHB, staff and members.

Enjoy and please share with your members across the Federation.

Message Research Shows How to Tell Story of Homeownership

by Robert Pflieger, NAHB Senior Vice President for Communications

Robert Pflieger

Homeownership is under attack. Some policy makers in our nation’s capital are even questioning its value. At a time when lawmakers are debating the merits of key housing policies, it is more important than ever to remind the American people of the value of homeownership.

The housing industry must tell a compelling story to remind the American public that homeownership is a key source of pride, peace of mind, accomplishment and security – and to inspire them to take action to protect it.

NAHB has invested significant time and resources to conduct research on the level of knowledge and attitudes of the American public on homeownership. The research showed that Americans see homeownership as a core value. But the research also showed that few Americans are aware of proposals that would make it harder for middle class families to own their own home. It also found that while Americans love homeownership, they are predisposed to change – just a one-third minority solidly supports policies that continue to encourage homeownership.

Using that research, NAHB has begun a broad-based messaging initiative. It is based on a cohesive narrative that engages people’s emotional connection to homeownership, explains the importance of residential construction as an engine of job growth and spurs positive action on behalf of housing.

The vast majority of Americans still desires to own their own home. And homeownership is critical to new jobs and economic growth. It is important that men and women who work in the residential construction industry stand up and explain the importance of homeownership.

NAHB has created an online messaging toolkit to help members tell a compelling story about the value of homeownership. It contains talking points, speeches, op-eds, print ads, letters to the editor and other resources to use with various audiences such as lawmakers, home buyers and the media.

Access the toolkit (limited to NAHB members) at www.nahb.org/messaging.

NAHB is asking all members to be ambassadors for homeownership. Please contact communications@nahb.org if you have any questions about the messaging initiative or toolkit resources.

2012: NAHB Priorities

2012-01-08T09:05:00.002-05:00

When we arrive at December 31st, 2012 the many individuals and companies that are a part of the building industry will look back and say "this was the year we began our recovery from the Great Housing Depression." This year, when you ask what your NAHB membership does for you I would like you to give some thought on how you can help maximize your membership by being involved and helping NAHB help you.

As we move into this new year of hope and optimism let's fully understand what the National Association of Home Builders (NAHB) is currently focused. Below is the 2012 NAHB Priorities, on behalf of its membership, reprinted from nahb.org. Please share them with all of your members as a retention tool but also as talking points in HBA membership recruitment

1. End the Housing Production Credit Crisis

It is absolutely vital to get credit flowing to the housing sector again. In the current regulatory climate, lenders have basically stopped making acquisition, development and construction (AD&C) loans that are necessary to allow builders to construct new homes. Credit is the lifeblood of housing. Home builders cannot keep their doors open and create jobs in their communities if they cannot get credit to build even pre-sold homes. And when lenders call in performing loans, everyone suffers. Workers get laid off, sound projects go uncompleted and banks take possession of unfinished property.

Federal bank regulators maintain that they are not encouraging institutions to stop making loans or to indiscriminately liquidate outstanding loans. However, NAHB members who are dealing with banks all across the country suggest that bank examiners in the field are adopting a significantly more aggressive stance on AD&C loans out of fear of the regulators coming into the banks and targeting them.

With inventories of new homes nearly depleted in many markets, builders should be gearing up to meet demand, create new jobs and keep the economic expansion moving forward. The only thing holding builders back in these locations are traditional lenders, who still aren’t providing the credit needed to renew the production process.

NAHB is urging Congress to support legislation introduced on May 5 by Reps. Gary Miller (R-Calif.) and Brad Miller (D-Calif.) that would help restore the flow of credit to the housing sector. H.R. 1755, the Home Construction Lending Regulatory Improvement Act of 2011, offers a legislative solution aimed at ending the freeze in housing production credit that has forced countless home building firms across the nation to shutter their doors, resulting in grave repercussions for job growth and the overall economy.

For more information, see the text of the legislation or read NAHB’s press release.

2. Resolve the Faulty Appraisal Process

Appraisals remain a major problem for the housing industry. The process has gone seriously wrong because some appraisers are using distressed properties – many of which have been neglected and are in poor physical condition – as comparables in assessing the value of brand new homes without accounting for major differences in condition and quality. Without such adjustments, the two are not comparable. Appraisers don’t typically enter these fixer-up homes; if they did, they would likely recognize the substantial differences between a foreclosure that lacks working appliances and a new home fitted with state-of-the-art appliances.

Too often, due to faulty appraisal practices, the builder’s house winds up getting appraised at less than the cost of construction. This is not only unfair and unreasonable, but it perpetuates the cycle of declining home values, drives more home owners underwater, negatively affects housing demand and acts as an obstacle to the recovery of the housing market. Major reforms in appraisal practices and oversight are needed to ensure that appraisals accurately reflect true market values and don’t contribute to price volatility.

For more information on the appraisal issue, see the Nov. 7 special edition of Nation's Building News .

3. Protect the Mortgage Interest Deduction

Americans overwhelmingly oppose any action by Congress to tamper with the mortgage interest deduction, but it could be eliminated or scaled back as federal lawmakers and the Administration are looking at tax increases in light of deficit concerns.

The consequences would be devastating for home owners, the housing market and the nation’s economy. Any attempts to tamper with the mortgage interest deduction would raise taxes on millions of home buyers and home owners and further depress home values, leaving more home owners with mortgages larger than the value of their property (“underwater”) and fueling even more foreclosures.

This cornerstone of American housing policy has been in place since the inception of the tax code nearly 100 years ago and supports the aspirations of families at all income levels to become home buyers. Nearly 37 million home owners directly benefit from the mortgage interest deduction and 70 percent of the benefit goes to middle-class home owners who make less than $200,000.

Many in Congress agree that tampering with the mortgage interest deduction would harm consumers and the economy. House resolution H. Res. 25 expresses a "sense of Congress that the current federal income tax deduction for interest paid on debt secured by a first or second home should not be further restricted.” The resolution, which has more than 180 cosponsors, shows that lawmakers are aware of the critical role that the MID plays in supporting homeownership in this country. NAHB is encouraging supporters to call the Capitol Switchboard at 202-224-3121 and urge their representatives to co-sponsor H. Res. 25.

To educate the public on the importance of preserving the mortgage interest deduction as a cornerstone of American housing policy, NAHB has created a consumer-oriented website, SaveMyMortgageInterestDeduction.com. The website contains fact sheets, frequently asked questions, statistics, and other important information to allow consumers to stay informed as debate on the mortgage interest deduction moves forward.

Most importantly, SaveMyMortgageInterestDeduction.com tells visitors how to remain engaged and make sure their opinions are heard on this important issue by connecting through NAHB’s Facebook and Twitter mortgage interest deduction communities and Eye on Housing blog.

4. Maintain Federal Support for Housing Finance System

Some members of Congress are actively pushing to abolish Fannie Mae and Freddie Mac and end the federal backstop for housing. Absent a federal role to help reassure mortgage market investors, the 30-year, fixed rate mortgage, the major housing finance tool for most Americans, would become increasingly scarce and much more costly, pricing many creditworthy borrowers out of the marketplace. Similarly, the availability of financing for multifamily housing would fall woefully short of the growing need.

In the wake of the financial crisis, the Federal Housing Administration, Fannie Mae and Freddie Mac have become the primary sources of financing for residential housing.

Even with the current high level of federal support, fewer mortgage products are available now than in the past, and these loans are being underwritten on much more stringent terms. As the private market assumes a greater role in the mortgage marketplace, maintaining an appropriate level of government support is essential to preserve financial stability, promote investor confidence and ensure liquidity and stability for homeownership and rental housing.

Complicating the situation, the federal government is looking to trim back the Federal Housing Administration’s participation in the market, which would further limit the availability of low downpayment mortgages.
Reps. Gary Miller (R-Calif.) and Carolyn McCarthy (D-N.Y.) on July 7 introduced H.R. 2413, the Secondary Market Facility for Residential Mortgages Act of 2011. The bill would stabilize housing and ensure liquidity in the mortgage market by maintaining a federal role in the U.S. housing finance system.
Similar bipartisan legislation (H.R. 1859) introduced this spring by Reps. John Campbell (R-Calif.) and Gary Peters (D-Mich.) would replace Fannie Mae and Freddie Mac with five private companies that would issue mortgage-backed securities and have government backing.
NAHB has presented lawmakers with a detailed proposal on restructuring the housing finance system to provide a consistent supply of mortgage liquidity and retain a federal backstop while limiting taxpayer exposure. Actively involved in this issue, the association continues to encourage all congressional efforts that seek an appropriate federal role to ensure a reliable and adequate flow of affordable housing credit.
Meanwhile, in an important victory for consumers, President Obama on Nov. 18 signed into law legislation passed by Congress to restore higher loan limits through 2013 for mortgages backed by the Federal Housing Administration. Restoring the higher FHA loan limits will help to stabilize home values, provide constancy while private investors re-enter the market and enable millions of creditworthy consumers to get home loans with the best mortgage rates and lowest fees and downpayment requirements.

For more information, click on the links below:
Restoring higher FHA loan limits provides a much-needed boost to the mortgage market
Bipartisan House bill maintains a federal role in restructured housing finance system
NAHB testimony before the Senate Banking Committee on the future of the housing finance system
NAHB press release on Senate Banking Committee hearing
Principles for restoring stability to the nation’s housing finance system
NAHB press statement on House hearing examining housing finance issues
Statement from NAHB on proposals to eliminate the role of Fannie Mae and Freddie Mac in the U.S. mortgage market
Fannie Mae, Freddie Mac and FHA Loan Limit Changes for 2011: Scope of Impact

5. Preserve Affordable Downpayments and Mortgages

Six federal agencies are proposing a national Qualified Residential Mortgage (QRM) standard that would require a minimum 20 percent downpayment, which would keep homeownership out of reach of most first-time home buyers and middle-class households.

In addition, the QRM plan includes several other bad ideas that would seriously impact the average family’s ability to affordably obtain a home of their own. It would mandate restrictive debt-to-income ratios to qualify for a home loan and prevent 25 million current home owners from refinancing to lower mortgage rates because they lack the required 25 percent equity in their homes.

High downpayment and equity rules along with excessive underwriting requirements will not have a meaningful impact on default rates but it will tighten lending rules to the point where millions of creditworthy home buyers won’t be able to qualify for a mortgage. Responsible consumers who maintain good credit and seek safe loan products will be forced into more expensive mortgages under the terms of the proposed rule simply because they do not have 20 percent or more in downpayment or equity. In other words, the proposal unfortunately penalizes qualified, low-risk borrowers.

About 62 percent of first mortgages taken out to purchase a home last year would not have qualified under the proposed QRM standard because they had downpayments of less than 20 percent, according to LPS Applied Analytics, a mortgage data firm.

NAHB estimates that it would take 12 years for a typical family to save enough money for a 20 percent downpayment on a median-priced single-family home and other research has found it would take even longer. Borrowers unable to make a 20 percentdownpayment or to obtain FHA financing would be expected to pay a premium of up to two percentage points for a loan in the private market to offset the increased risk to lenders, according to NAHB economists. This would annually disqualify about 5 million potential home buyers, resulting in 250,000 fewer home purchases each year.

If buyers are denied access to affordable housing credit, the shadow inventory of foreclosed homes will not be drawn down, a housing recovery will not take hold and economic growth will stall.

Low-downpayment home loans have been originated safely for decades and did not cause the housing lending crisis. Subprime, no-documentation loans and other alternative mortgage products crashed the economy. The Administration and regulators must acknowledge this fact and offer a new plan that ensures a safe and healthy mortgage market and keeps homeownership affordable for working American families.

For more information on this topic, click on the links below:
Lawmakers join industry groups to urge revising minimum 20 percent down requirement
Industry White Paper on QRMs
Consumer, banking and housing groups issue joint statement on proposed QRM rules
Diverse groups respond to proposed rule for QRMs
NAHB press release on how 20 percent downpayment rule would disrupt housing market

6. Recognize Housing’s Important Role to the Economy

As policymakers begin debate on housing finance and budget issues that will impact job creation and future growth, they must understand the important role that housing plays in the U.S. economy. Considering the enormity of the total number of jobs attached to housing, a sector that accounts for 15 percent of the nation’s Gross Domestic Product, now is hardly the time to step back from the nation’s long-standing commitment to homeownership.

Building 100 average single-family homes generates more than 300 jobs and nearly $9 million in taxes and revenue for state, local and federal governments. Perhaps more than any other consumer product, housing is “Made in America.” New homes and apartments don’t arrive in this country on container ships from Europe or Asia, and most of the products used in home construction and remodeling are manufactured here in the United States.

More than 1.4 million residential construction jobs have been lost since April 2006. The pace of recovery is debatable, but based purely on population growth and demographics, the U.S. will need to build 17 million additional homes over the next decade.

The gap between current production and potential housing production is more than 1 million homes. That represents more than 3 million untapped American jobs. This gap is a result of multiple factors, including deferred household formations, a lack of construction financing and flawed appraisal practices under which new homes get compared to distressed and foreclosed properties, thereby distorting true market values.

There can be no economic recovery without a housing recovery. The path forward is perfectly clear: Congress needs to take actions to restore the health of the housing industry to put America back to work.

This is a sentiment shared by American voters as well. A recent NAHB survey of likely 2012 voters conducted by Public Opinion Strategies and Lake Research Partners found that despite the ups and downs of the housing market, home owners and non-owners alike consider owning a home essential to the American Dream and support politicians who embrace pro-housing policies and the mortgage interest deduction.
An overwhelming 75 percent of the respondents said that owning a home is worth the risk of the fluctuations in the market and 73 percent of those who do not own a home say it is a goal of theirs to eventually buy one. Equally telling, more than 70 percent of voters believe the federal government should provide tax incentives to promote homeownership and oppose proposals to eliminate the mortgage interest deduction -- a sentiment that cuts across party lines.
For more information on this topic, click on the following links:
Poll finds big disconnect between Washington policymakers and voters on value of housing
Direct impact of home building and remodeling on U.S. economy
Economic benefits of new home construction
Housing’s contribution to Gross Domestic Product

7. Defend the Low Income Housing Tax Credit
As Congress looks at tax expenditures and all programs come under review, it is important to protect the Low Income Housing Tax Credit (LIHTC), the most successful affordable rental housing production program in U.S. history. Eliminating the LIHTC would bring production and rehabilitation of affordable rental housing to a standstill.
Since its inception, the program has made possible the production of more than 2 million affordable apartments. It creates approximately 95,000 new full-time jobs, adds $7.1 billion in income to the economy and generates approximately $2.8 billion in federal, state and local taxes each year. In recent years, the LIHTC has produced about 75,000 new apartment homes annually.
The demand for affordable housing is acute and far exceeds the ability of LIHTC projects to keep pace. The program is essential to address the shortage of affordable housing options in our cities and towns.

Submitted by:
Michael Kurpiel, CGA, CGP
NAHB Associate Member Committee Chairman
Past National Associate Chairman 2009-2010

"Here's to the Happiest of Holiday Seasons"

2011-12-23T09:47:00.000-05:00

To all of my dear friends and fellow building industry peers;

As we end our 2011 and look towards celebrating the birth of a new beginning, I hope all of you will experience a Very Merry Christmas, a Fantastic Holiday Season & a Very Happy, Healthy & Prosperous New Year!

Warm Wishes & Best Regards,

Mike

Association Maximization will be back on January 8th, 2012.

Submitted by Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chairman

"The Social Media Explosion"

2011-12-18T08:36:00.003-05:00

In our blog post dated December 4, 2011 70 Years of HBA Communication: "Can You Hear Me Now?" we talked about where NAHB began with communications and what we have available to us today. Conversations about the many social media vehicles are abundant with opinions to match. The 21st century has delivered to humankind 24/7 contact (and I'm not even bringing Blackberries, DROIDS or iPhones/iPads into the mix). Our home builder associations (HBA) have a critical need to reach out to membership and keep them "informed" and more to the point, effectively informed. The major vehicles for social media each have a place in communication and, if each are utilized correctly, will bring a unique type of communication to our members and for our members.

Ray Tomlinson gave society one of the greatest communication tools in history. He invented email back in 1971, eventually transforming global business communication. It wasn't until the 1990's that email became "the new best thing in communication." Emails replaced hand written letters and the "voice-to-voice" communications that gave every conversation a personal touch. It also became easy to send everything and anything (insert your most hated spam here) which created email over-saturation. One of the most effective means of mass communication at a moment's notice became an easy target for the delete button.
Because of over-saturation, and the ease of deleting, important messages were not being read meaning that the grass roots effectiveness of the HBA was slowly becoming neutralized. Because of this, social media is rapidly becoming a critical aspect of our industry's communication efforts. In a perfect social media world, the message bearers will be able to effectively post messages that are relevant to and through each social media vehicle. Right now a small percentage of members are involved in the first four (listed below) vehicles. So redundancy will be an issue for the time being. If you are a social media junkie you will most likely be on multiple pages and groups as well as emails and other feeds. You will be bombarded with the same messages time and time again unless you take a few seconds and adjust your setting so you decide which messages and from which sources you receive information. This is on you to handle, no one else.

Let's look at the major players of the social media tool belt and it's uses for the HBA (as a note, NAHB has a page or group on the following social media sites);

1. Facebook ~ One word; pages. Facebook is designed for letting people know more about you. When we discuss the business aspect of Facebook we find ourselves talking about pages. Pages are designed to highlight your purpose. Is it a business? A cause? A particular political party? You will find a page for just about anything. While these pages are great for "strutting your stuff" they are not conducive to two way or multiple business conversation due to one particular hindrance; most companies do not allow their employees on Facebook during business hours. So for most people, Facebook is an evening or weekend "catch up." Facebook has its place but for HBA effectiveness I would go with LinkedIn. A few great aspect of Facebook is the availability of posting pictures of your HBA events directly on the page or creating an event posting that gives you an idea of who might be attending.

2. LinkedIn ~ One word; groups. The business person's Facebook. If you have a LinkedIn account you have no doubt created an exceptional profile page that gives the viewers a great sense of who you are and what you represent. That is critical because if you post in any groups that you join others will want to know your background based on the content of your post.
Another plus for the HBA is that if you have your own local or state group you can post information on a daily basis, even hourly basis. Once a member to your group is admitted they can adjust the settings to have a daily digest or weekly digest of information. Or they can opt out of any messaging and visit the group when they want to visit the group. Now the emails you send can be for "calls to action" or other time sensitive alerts.

An example: The NAHB Associates LinkedIn Group has building industry professionals from all over the country. There are topics for conversation that will bring you information, help you with association questions, develop deep conversation about an industry topic and much more. Your "circle of influence" grows considerably and you have taken the restraints of physical travel out of the equation. NAHB Associates group has sub groups designed to be an extension of The NAHB Associate Members Committee's sub committees. These areas are a work in progress but it helps deliver continued committee work outside the three times a year the committee meets in person. It also allows members of NAHB to participate on national projects when they can't attend in person. Exposure and awareness of national volunteerism has never been easier or more efficient.

3. Twitter ~ Quick hitting alerts and updates are the primary focus of having an HBA Twitter account. For the HBA, a call to action or a change in particulars of an event are just two purposes but keep in mind the message goes out to an unlimited amount of people. The one efficient use? Broad exposure of a message for a grass roots ever in an extremely timely fashion Facebook and LinkedIn have the same uses as Twitter. Twitter is really mass communication going in one direction but doesn't go through your spam filter. You will reach 100% of the members that have signed up for the HBA alerts.

4. YouTube ~ I love this form of social media; video messaging. Whatever the message is, it won't be in words on an email or post on a page. You will see the person, hear the passion of conversation, place a name with face and voice. I suspect that one day this will be the preferred message delivery system. Skype has taken off and more and more associations are turning to video conferencing. People love to hear AND see what's going on. YouTube is a perfect vehicle to discuss political fundraising or member to member requests. It's a fantastic vehicle for membership recruitment as prospective members can see actual members discussing their reasons for being a member.

5. Google + ~ Newest rival to Facebook, still in its beginning stages, but growing fast. Google + may be the best of all worlds, one day.

My advise; don't jump on everything all at once. Find a vehicle that suits your style and really take the time to adjust your frequency of information feeds. Social media is here and members of the HBA should be working towards embracing the future. If you can type and read you can participate and you will probably enjoy the new world.

Submitted by Michael Kurpiel, CGA, CGP
2011 NAHB Associate Members Committee Chairman

IBS 2012: "It's Showtime!"

2011-12-11T07:31:00.000-05:00

Over the course of the next several months, Association Maximization will be featuring guest contributors and we start by bringing on our first guest, Mark Pursell. Mark is Senior Vice President, Exhibitions, Marketing & Sales at the National Association of Home Builders.

Let's kick off our Federation's 70th year and come and enjoy the ultimate building industry event; The International Builders Show 2012.

(Note: We will continue our discussion on social media next week!)

Special IBS 2012 Update!

"What’s new at the 2012 International Builders’ Show in Orlando? A lot, and some will begin soon.

Registered attendees will, starting on December 15, have access to an online matchmaking system enabling the scheduling of meetings directly with exhibitors. We’re excited as the technology is easy and is integrated with the current online show planner tools. We expect crowded aisles as our pre-registration is currently running 15% ahead of last year. So having a tool to lock in a meeting will be useful. We’ll also soon be launching a mobile IBS site so you can access show information right from your smart phone. Find exhibitors, see your meetings and locate special events on the fly! IBS is really about connections with people. So your Conventions Committee has added some great networking opportunities to the 2012 Show. On the Show floor will be “IBS Live”, a dedicated space for informal meetings, special presentations and our Finance Pavilion. Again, another first for IBS. Building on the success of our “Central’s” concept, we’re adding a Sales Central in Orlando. These Centrals are dedicated areas for segment specific networking and education. The Sales Central will join Multifamily, 50+, Remodeling, Design and Custom. We’ve also added another after hours event, the “IBS House Party” which is a ticketed function taking place on the first night of the Show, Wednesday, February 8. Of course the focus of IBS will be the seven hundred exhibitors with new products and services. The Show floor is where the action is!"

Learn more at www.buildersshow.com

Submitted by:

Mark Pursell

Senior Vice President

Exhibitions, Marketing & Sales

National Association of Home Builders

1201 15th Street, NW

Washington, DC 20005

D 202.266.8477

mpursell@nahb.org

70 Years of HBA Communication: "Can You Hear Me Now?"

2011-12-04T11:51:00.000-05:00

The National Association of Home Builders (NAHB) opened its doors back in 1942 and 70 years later NAHB is still, despite the everlasting housing depression, going strong. NAHB is a trade association that helps promote the policies that make housing a national priority and communicating to the general membership has always been a vital part of grassroots efforts. Back in the '40s we had regular mail and telephones for a message delivery system. In 1945, however, only 46% of households had a phone so back then the U.S. Postal Service was our method of communicating on a regular basis and really was this way through the 1970's. Since that time we have witnessed

pagers
fax machines
email
cell phones
and the good ol' standby, regular mail

as the methods of communications. Believe it or not we still can not keep in communication with 100% of NAHB membership and it is not for lack of trying. However, over the past several years a more explosive way to communicate has emerged and risen to the top of our communications tool box:

SOCIAL MEDIA (just to name a few)

The age of instant contact came upon us fast, maybe too fast and we may not have been ready. It seemed at first to be for the "young whipper snappers" of the world. But a few daring adults dove in and found out that this new world really isn't that scary and others joined in. And then others.

Here is a chart that breaks down percentages based on age groups:

Given the fact that the average age of an NAHB member is 51 it would seem that those above the average are more comfortable with the traditional ways of communicating while the next generation of members are dominating the chart (25-44 age group) at almost 45%. NAHB has already begun (a few years now in fact) the task of bringing the Federation into the 21st Century's means for efficient communication. Speaking with some of the past NAHB leadership of the mid to late 90s they are amazed at what can be accomplished today compared to what they had to utilize for member outreach. NAHB has the all the communications tools necessary to reach all members (for those who have joined us here in the future) with "speed of light" quickness and in many forms. The problem. right now, is educating the general member on the value and the ease of social media. The PROs far outweigh the CONs and, in the upcoming blog posts, we will discuss the various methods of communicating through social media, the benefits of utilization and the right & wrong ways of participating.

Submitted by:
Michael Kurpiel CGA, CGP
NAHB Associate Members Committee Chairman

"Call Me a Traditionalist"

2011-11-27T09:09:00.000-05:00

"Tradition is the illusion of permanence." ~ Woody Allen

'Tis the season and with it is comes times of reflection of the past year and optimism for the next. Christmas time, for me, has always been a very special time and whichever holiday others celebrate is equally as special to them. It's about family, friends, loved ones who are gone but remembered and new additions to welcome into the fold.

'Tis the season as well for home builders associations around the Federation to install their incoming leadership team for the upcoming year.
My first time attending an installation dinner occurred many years ago. I looked forward to attending as it was going to be my first black tie event. In the building industry, the opportunity to wear a tuxedo comes rarely, if it all. As a matter of fact, it was the first time I wore a tuxedo since my wedding day. I rented a tuxedo for the installation but learned quickly that it would be less expensive in the long term to buy.

The installation of officers, and the board of directors, was also a time when you had a Christmas Tree at the event (before political correctness ran amuck), with women in gowns, adding to almost all the men in tuxedos; something special was taking place, you could feel it.
The installation banquet era, for the most part, is gone. It was a simpler time that called for an extravagant celebration of leadership to end one year with the promise of the next. Business casual has replaced the tuxedo & gown and the reverence of the installation has been replaced by a quick swearing in of the officers and board. Once in awhile some of the actual members being installed, both officer and board, don't even make the event!
Call me a traditionalist but for me it's very sad to watch and experience the "new" ways of an old, but eloquent tradition. Blame it on the economy if you want but the volunteer leadership installation needs to return to the days of past. I know what you're going to say; "learn from the past, experience the present and prepare for the future." Some traditions have a place that doesn't need to be improved upon and in my opinion this is absolutely one of them. The installation banquet is a time where you leave the real world outside and, for a few hours, we celebrate our industry. 'Tis the season to visit with old friends and meet new ones, enjoy the evening with your (again, political correctness) significant other and at the end give a standing ovation to the newly installed volunteer leadership.

In an ever changing industry, with the highest of peaks and deepest of valleys, one thing can be a constant. The traditional installation banquet.
Maybe tradition is "an illusion of permanence," and tuxedos won't make a comeback, but could you please put on a tie?

Submitted by Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chairman

Leadership: "Risks v. Benefits"

2011-11-20T10:52:00.000-05:00

Choosing to make the decision to move forward in becoming an HBA leader places you in a unique role. You have made the choice to invest your time and with investment there comes the inevitable "risk/reward" moments of reckoning. Are there risks? A few but the rewards, or better stated, the benefits, outweigh the risks. In this final installment of the leadership series will highlight the risks and uncover the benefits of choosing to become an HBA leader. The leadership power point training for this series of articles will be located on NAHB.org by The International Builders Show, 2012. By utilizing the power point training and the discussions from these leadership articles you can craft or add to your current HBA leadership training.

Risks v. Benefits

The Risks;

When we discuss risks we are talking about only a few elements and they are completely under your control; IF you recognize them.

Time commitment - In past articles about your choice in becoming a leader I wrote about understanding "association first, your business second." This is not a motto but a direction. However a few people wrote me and said "Mike, members can not place the association over there business, particularly in these times." I agree with them, wholeheartedly. I never said or wrote "place the association over your business." I wrote that when you are working on association matters your business can't influence your contribution(s) to the conversation, the initiative and/or future of the HBA. The risk I'm referring for this discussion is giving your all to the association and neglecting your business. There are some who have not recognized this and their business suffered. Be careful and understand the balance. It's always your decision, your choice.
It's not about you - Mick Jagger, Rolling Stones, sung "you can't always get what you want." You may think you have the only solutions but their are others that have similar or different points of view. The risk here is sometimes your thoughts will be the direction, sometimes they won't. How you respond is under your control. Remember, Mick finished the lyrics by singing "but if you try sometimes, you may find, you get what you need."
The "Paper Towel" experience - A long time ago, someone said to me that we use our volunteer members like paper towels; keeping pulling off sheets of contributions until you are left with a card board roll, then discard. This risk is all in how you view that statement. If you feel like you are being used, you'll sour on the HBA. What you have to place above that feeling is that during your time you gave to the best of your abilities and assisted in helping the HBA and, in turn, the building industry. You can't hold on to position and you need to recognize that others will be choosing to help, with you and after you.

That's it; we covered time, input and ego. I can't think of any other risks but I'm sure there may be others. Again, if you identify these risks from the start, you will neutralize them, make them a non issue. Your choice.

The Benefits;

Education - learning about the industry, the threats, the trends, the future. You will not find this in any college but you will not only find it through leadership but flourish with the knowledge you gain as an HBA leader.
Working knowledge of government - some may say that they are not interested in politics. However, having an interest in how politics affects your home building industry career brings you knowledge that, when explained, delivers insight to you that you may not receive as a general member.
Career improvement - whether you are a builder or an associate you will be able to apply your new found knowledge to your business. It's one of the returns you receive by investing your time in the association.
Strategic planning and business direction - understanding where the industry is at the moment is great. Knowing where it is heading is better. Whether you build homes or supply product/service to the construction, you have competition. Leadership gives you a distinct advantage that your competitors won't have. Some will say "Mike, you are going against what you wrote, 'don't use the association!'" I wrote "utilize the association, don't use." Huge difference and as a leader you understand the knowledge you gain is part of utilization.
"Education and application" (better known as volunteer leadership) - there are training organizations, like Dale Carnegie, that will teach you the philosophy of leadership. There are organizations like the HBA that will not only teach you but give you hands on experience, learning by trial and error. This type of education will help you lead within your own company. Think about; if you could lead volunteers to success in the HBA imagine what you could do if you lead paid employees.
Relationships that last a lifetime - your time in the association as a leader brings quite a few benefits but the relationships you make are priceless. You are part of an extended family. Like any family you will have your share of "Kodak moments" as well a family squabbles. Please understand, as part of leadership, you won't go through tough times alone or ever rejoice with good news by yourself. Some may say that this isn't a benefit. I truly believe it has been an enormous benefit for me.

The benefits, like the risks, are also your choice. Choosing to be an HBA leader is always your decision. Never let other members pressure you to become involved or more involved. When the time is right you will know when the time is right for you. There will be plenty of times when you reach the proverbial fork in the road and how you choose to make the decisions will ultimately teach you lessons and, if lessons are learned, will help your future decision making within the association and within your profession.

I would like to thank the past, the present and the future leaders of our association. You are a rare breed in a "what's in it for me" world; you care. Almost all the presidents of our HBA smile when they are making the transition to "past president." They will say they are relieved that their time is over. I don't believe them for a minute. They are smiling because they know they gave it their all for the home building industry and that smile is one of satisfaction that they didn't sit back and watched, they led.

"Do not go where the path may lead, go instead where there is no path and leave a trail." ~ Ralph Waldo Emerson

Submitted by Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chairman

•

Leadership - "Associate Vice President"

2011-11-13T09:00:00.005-05:00

Last week's article we discussed the functions and makeup of the HBA senior officers. Today's article will highlight associate leadership within the HBA and specifically focus on the associate vice president position. Some HBAs do not have this position but their bylaws allow for an associate to become an officer. This is also the case for some state associations and NAHB does not have any associates serving as a senior officer. The "reasons" for not having this position are plentiful and the reality of the concerns is quite the contrary. If you were to ask any executive officer what the associate members bring to the HBA they would say that associates are invaluable volunteers and investors in the association. They are also business people, like builders, who manage their businesses, strategically plan for their business' future, recruit new accounts (think members for the HBA) and can troubleshoot with the best of them. The associates, if they are educated in the HBA leadership process, are a fantastic resource for the senior officers in the strategic planning and marketing of the HBA. Associates understand the affects of a brutally sluggish economy, particularly in our industry, and the need to do their part in helping the builders start building again. Builders and associates are tied together in the home building and remodeling arena and both need each other to be a complete one.

The Associate Vice President (AVP)

If your HBA "allows" associates to serve as an officer but they do not have an AVP position understand that the associate officer has other responsibilities. If they are the treasurer their primary focus is on the financial health of the HBA and if they are the secretary their responsibility is the administrator for the board.

Why create an AVP position at your HBA?

The AVP's will help, with proper focus, the associate members who account for two-thirds of the membership (on average). What issues are affecting the associates need to be understood as much as builder issues. There are many reasons I could give you for saying that but the number one reason would be that associates are the massive majority of investments (sponsorships, membership dues) and attendees of HBA events. The health of the HBA is dependent upon this income and participation. The AVP will help in assisting the senior officers in communicating with the associate members and giving the "other" point of view of the industry.
This position helps foster a better overall team approach for the HBA and destroys the old "Us' v. Them'ns" mentality. Unfortunately, this still exists within the Federation.
The AVP, when visiting with his or her officers team, will highlight the complete building industry. I have personally visited with state legislators and federal legislators, always with builder leadership. The legislators revived a different point of view and had a better understanding of just how many people are affected by industry roadblocks and stoppages.
If your HBA doesn't have any associates on its senior officer team it is time to rethink that bylaw and work to amend. Associates want to serve, they want to be a part of the solutions and actions to help the builders, the building industry.

What is the role of the AVP?

Spokesperson for the associate membership.
Motivator.
Communicator.
Liaison.
Mentor.
Should help to create an associates committee for the main purpose of industry education and working on business issues that affect associates.
Identifies opportunities for increased builder-associate interaction and partnerships.
Blends the associate members needs with the ultimate goals of the HBA.
Identify the effects of board actions, legislation, regulation and economic climate on associate members.
"If it affects builders it will affect associates" is the AVP's position in discussing HBA actions with the associate membership.
Part of the "one voice" of HBA leadership.

Some have just read this and are asking "why do we need an associate to perform these actions?" We have talked about peer to peer in fundraising articles and the same approach is successful here. Builders will speak to associates about building industry issues as if the associate always understands. The AVP will ask the "meaning, cause and effect" questions in officer discussions and break the issues down into its simplest form and communicate the information to the associates. I am not saying associates are not bright; I'm saying they don't deal day to day with the same issues that builders do and therefore not accustomed to the verbiage. But we do understand the point made in # 10 above all to well.

Associates, if you do choose to continue on the leadership path and becoming an AVP is a leadership goal, remember, it's your choice to do so. The business of the association comes before your business. If you can't be an officer without leaving your personal business outside the meeting room door then you should not aspire to this level of leadership. You can't be an effective leader with a personal agenda and you will actually go backwards in how others will view you.

Next week's blog will detail the benefits and risks of being a volunteer HBA leader.

Submitted by Michael Kurpiel, CGA, CGP
2011 NAHB Associate Members Committee Chairman

"If your actions inspire others to dream more, do more and become more, you are a leader." ~ John Adams

Note: This series of blog posts are based on The NAHB Associates power point presentation titled "Unlocking the Mystery of Associate Leadership." A special thank you to the New Jersey Builders Association for donating the presentation to NAHB in hopes that our associate members across the Federation could help those members who would like to contribute their skills and talents in leadership.

Leadership - "The Senior Officers"

2011-11-06T07:01:00.003-05:00

"Anyone can hold the helm when the sea is calm." ~ Publilius Syrus (100B.C.)
It has been said that all journeys come to an end so the road to leadership would seem to end with becoming an officer of the HBA. On the contrary, it really is only the beginning. We have spoken about volunteers, committee chairs and board of directors. Each level brings you closer to that feeling of ownership in the association. When you become an officer you develop a desire to truly be the protector. How deep that desire goes is up to each individual but you are protective of the HBA nonetheless and you know are a part of its fabric. Your days as an officer could be many years removed but most past officers, particularly presidents, still are engaged because the HBA never left them. This is a good thing.

Senior officers are that beacon of light on a stormy night. They lead when some may choose to take cover. Their natural instincts are fight, not flight, and inspire others to stay the course. As I write this article, our industry is in the worst economic crisis it's ever experienced. Local, state and national officers, in today's world, are the reasons I believe we will make it through this time in our home building industry.

The Senior Officers:
HBA officers have the same requirements as board members. This level of leadership goes further as the officers work on the internal management of the HBA and have more of a time commitment that a board member. To become a leader in the HBA is a personal choice and a professional commitment.
The most important point to remember as an officer is this; "one thought, one voice" mentality. It is certainly fine to have disagreements as officers, in fact it makes for a healthy discussion. However, when the door to the officers' meeting room opens, an effective officer team comes out united in course and action.

President ~ The president is THE voice of the association, to the association and on behalf of the association. Presidents are the ones who meet with legislators, support the association's policies internally & externally as well as govern & guide the flow of conversation of the board.
Presidents also make committee chair appointments that help to establish leaders, create and set agendas for task forces and lead by example. Local HBA presidents generally represent their local on the state board level and should be involved with the state HBA on conveying the local's concerns and help craft guidance.

In the previous article on the board of directors I wrote that the chief elected officer (president), according to NAHB by-laws, is a builder member. The reasons are multiple but there are a few worth mentioning due to the fact that some HBAs allow an associate to be their president:

This is a builders association that encompasses the entire home building industry. Suppliers, service providers and trades (AKA associates) are part of the association, should help lead within the association but should not be, in my opinion, the lead voice of the association.
Builders are the members that have to work with planning boards, building inspectors, regulatory agencies, potential home owners, etc. The builders take the upfront risks to bring a project from the planning stages through the closing. Who better to lead than someone who has "skin in the game."

Roles of the builder ladder (vice presidents) ~ Next in leadership, depending on the individual HBA, you will have a first and possibly a second vice president (builder) to advance up the leadership ladder. In some very fortunate cases there may even be a third vice president.These positions are integral to the success of the HBA as it establishes a succession of builder leadership. Each vice president may have, depending on the individual HA, oversight of a particular aspect of the association through an assigned standing committee or a political action committee.

These positions help the builder officers become prepared to take over the reins of the HBA by becoming acclimated to the personalities of the HBA and educated of the issues of the HBA.
These positions also gives multiple points of view, from other builders, to the president and help set up a continued association strategy for success.

Roles of the treasurer and secretary positions ~ These positions, depending on the local's by-laws, can be either a builder or an associate (if not part of the builder ladder) and are extremely important in the overall management of the HBA.

Treasurer ~ The treasurer's main responsibility is to take charge of the association's money. The treasurer works with the executive officer to establish a budget for the HBA, submitting the budget for board approval and helps to identify ways to increase "the rainy day funds" through investments and/or other means of keeping the HBA in the black. The treasurer should hopefully have a better than average financial sense.
Secretary ~ this officer position should help to prepare the agenda for board meetings, should send regular and special board meeting notices to the directors, should record the minutes of the individual board meetings and should be, when votes are taken, the official vote tabulator.

The Immediate Past President ~ After serving on the ladder for multiple years the builder who climbed the ladder and reached the presidency took over for somebody. That somebody was a man or woman who gave their time to, hopefully, making the HBA a little better, a little stronger. We shake their hand and give them a past presidents pin at the installation of the new president. That is not enough for most because they need to stay apart of the team as they make the transition from president to trusted advisor. The immediate past president, in some HBAs, is considered an officer. Some retain a vote within officers' discussions, some don't. Some give their opinion when needed others help to strengthen a new president who may still need some seasoning. Regardless of the purpose this is a person who brings stability and history to discussions. They are most likely your most valued counsel during meetings. The position, more importantly person, is your key to builder leadership recruitment as well. The immediate past president most likely serves as the HBA Nominating Committee Chairman.

The Associate Vice President ~ This position was saved for the end of this article for a reason. Most HBAs have at least one associate as an officer. I say most because there are still some, although extremely small percentage, of HBAs that won't allow associates to be on the HBA board, much less an officer. This is, in my opinion, an incredibly important position within the HBA and one that has a great understanding of the, on average, two-thirds membership of the association.

I wont't spend time within this article describing this position because.......

next week's blog will define the associate vice president position, the need for the position and effective ways associates should lead from this position.

Submitted by Michael Kurpiel, CGA, CGP
2011 NAHB Associate Members Committee Chairman

"If your actions inspire others to dream more, do more and become more, you are a leader." ~ John Adams

Note: This series of blog posts are based on The NAHB Associates power point presentation titled "Unlocking the Mystery of Associate Leadership." A special thank you to the New Jersey Builders Association for donating the presentation to NAHB in hopes that our associate members across the Federation could help those members who would like to contribute their skills and talents in leadership.

Leadership - "The Board of Directors"

2011-10-30T09:43:00.005-04:00

Note: This particular article is direct and to the point. When it comes to the HBA board of directors I take a more aggressive tone because I deeply believe that at the local level board members are extremely vital to the health and well being of the local HBA.
This experience, if handled correctly, will help with the understanding of and better participation at the state HBA board and NAHB board of directors levels.

The HBA board of directors gives a unique perspective of how the association and the industry are intertwined. If you choose to seek a board seat, and are selected by the nominating committee to serve, you will find that when you cross that threshold from general member to board member it will be like Dorothy in The Wizard of Oz going from the world of no color to a fully aware world of technicolor.The primary responsibility of the board of directors is to protect the interests of the membership, generally, and the HBA, in particular. When you become a board member you do so by your choice, nobody else's. Resume builders are a dime a dozen but a true leader should clearly understand his or her role at this level.
When I made "the crossover" I truly became aware of the purpose of the HBA and I made the choice to put the HBA above my personal interests because I knew the success of the association would give me the opportunity to succeed.

The following are the proper steps needed to become a board member of you local. It's a rewarding experience, if conducted properly, and priceless when it comes to the education of our industry and your growth as an industry leader and professional.

"The Board of Directors"

Note: The following is based upon local HBA board of directors. State HBAs may slightly differ but not dramatically. Some states have, based on builder membership totals, available board seats with the majority, in some cases vast majority, given to builder members. Your local Executive officer can explain that process.

How to Become a Director

Financial commitment to the HBA ~ Those who invest in the HBA demonstrate a financial willingness to help in its success. These types of members "put their money where their mouth is" and that is a significant start. You may be in a situation where you absolutely can't participate financially. If this is the case ask yourself if you are doing all you can to influence others to invest in the HBA.
Excelled as a volunteer ~ If you were active as a volunteer, enthused and consistently followed through on your commitments, than you would be a welcome source of new blood on the board.
Have practiced "association first" ~ Members who have volunteered for the good of the association understand the value of a successful HBA.
Announce your intentions ~ The HBA is a lot of things to a lot of members but being a mind reader is not one! If you have an interest in serving at this level speak with your executive officer, current president and\or past president. One of the three, if not all, will be happy to discuss options for you.

Make up of Board

Senior officers ~ The chief elected officer (president), according to NAHB by-laws, is a builder member. Next in leadership, depending on the individual HBA, you will have a first and possibly a second vice president (builder) to advance up the leadership ladder. Other positions that are common; treasurer, secretary and associate vice president. Associates could serve as treasurer or secretary. A strong leadership ladder at the HBA would be majority builder member. Most HBAs have at least one associate as an officer.
Builder board members ~ builders should be the majority of your board.
Associate board members ~ the vast majority of HBAs have associates on their board.
Alternate directors (non voting) ~ while this may be a non voting position you may be called upon to vote if you are filling in for a full director. It is advisable for you to attend as many board meetings as possible so if you are called upon you have working knowledge of current HBA issues.
Life directors ~ This is achieved, in most local HBAs, after ten (10) years as an active board member with active meaning attending the minimum required board meetings per year. Each local is different in terms of total meetings per year and you can find the answer by asking the executive officer or reading your HBA by-laws. Some local HBAs include time served as an alternate towards the ten years. Again, you will find that out through your local.
Past Presidents ~ Once a president serves his or her year as the chief elected officer, they become past, with the most recent called "immediate past." Depending on the local HBA there may or may not be required attendance in order for the past presidents to vote but just like the alternate, past presidents should be attending in order to vote on relevant and current HBA initiatives.
Committee Chairs (non voting) ~ Some locals may have the multiple committee chairmen attend to give reports on their respective committees. Unless the chairman is already a board member, they can only advise, not vote.
State HBA Committee Representatives ~ Some local HBAs have their members, who serve at the state level on committees, give a report at the local board meeting. This way the local board can become better acquainted with state activities. Non voting unless already on the board.

Board Members Are Strongly Encouraged...

to attend board meetings ~ Life happens, work and family should always be at the top of your priority list, certainly higher than HBA involvement. No one will have any issue with you if "life happens" but if you know it will be ongoing please recommend someone else take your seat. The board, to operate properly, needs it's elected volunteers to attend meetings on a regular basis.
to attend general membership meetings ~ board meetings are usually held before general membership meetings. You're there already so unless "life happens" you should stay, meet the new members and engage in conversation with existing members.
to demonstrate fiduciary responsibility ~ you need to understand this term as a board member. A member who has been nominated and then elected to his or her board has been entrusted with the well being of that HBA.
to have a financial commitment ~ I have witnessed too many board members who have rust on the hinges of their wallets. We are not talking about breaking into your life savings or depleting your 401K but even a small financial investment is better than a non investment. How can we expect the general membership to invest in HBA initiatives if the board members do not?
to honor the Code of Conduct ~ most locals will have a code of conduct for their board members. Ask you executive officer for the language before you accept your board position.
to understand, respect & follow Robert's Rules ~ parliamentary procedure that keeps the volunteers in an organized meeting.
to be an active participant ~ Some boards are content with status quo, keeping non performing members as guardians of the local. The "you get out what you put in" theory is never more evident than on a local board. Some boards are actively engaged and passionate; those locals thrive in in today's economic climate. Other boards are apathetic; those locals are mostly distressed. Having a seat on the board doesn't mean to sit on your hands.
to recognize your choice to serve ~ all I am stating above is what is needed from you and your agreement to serve as a board member. This is your choice and how you choose to perform will give great insight to how you are as a professional. If you can no longer serve because "life happens" it is completely understandable, please just don't occupy a seat when there may be others who want a chance to help.

Next week's blog will explain the role of the senior officers.

Submitted by Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chairman

"If your actions inspire others to dream more, do more and become more, you are a leader" ~ John Adams

Note: This series of upcoming blog posts are based on The NAHB Associates power point presentation titled "Unlocking the Mystery of Associate Leadership. Thank you to the New Jersey Builders Association for donating the presentation to NAHB so that our associate members across the Federation could help those who want to contribute their skills and talents in helping the HBAs

Leadership ~ Chairman "Your Chair Is Waiting for You"

2011-10-23T07:20:00.001-04:00

Three blog articles ago we discussed volunteerism as the start towards HBA leadership. Two weeks we discussed what particular qualities are needed to be an effective leader. Last week we discussed leadership styles and which would be the best way to be effective.

The next, and natural, progression from the volunteer only level, with your identification of qualities and style, is to move into a chairman's role. Although the chairman step is not necessarily needed to become a board member or an officer, understanding the "volunteer manager" role will go along way in being a better, more developed leader.
If you decide this is your next step the benefits will be enormous to you professionally and will showcase your leadership skills. It's not everybody who can take a group of volunteers and influence them to deliver your particular initiative into the realm of success for everyone involved.

Your Chair Is Waiting for You

I hopefully will pique your interest now in stating that there are two major benefits to agreeing to become a chairman;

1. Helping the HBA with one aspect of being successful which in turn helps the industry. If it helps the industry you are helping yourself.
2. If you are successful in managing a group of volunteers, keeping them engaged and enthused, can you imagine how your skill level as a paid manager working with paid employees will grow? Absolute hands on training to become a manager or a better one.

Leader, facilitator, team builder. That is the core of being a committee chairman. It is also the Chairman's role to demonstrate the "fruits of the initiative," lead by example and action as well clearing road blocks.

Identify and understand priorities of the HBA - simply stated, you have to know the"whys" before you can take on the chairman's role.
Preparing budgets - in some cases, if it involves a fundraising event (when doesn't it??), you will have to either create a budget or adjust a current budget so you can determine if an event will be profitable.
Setting effective agendas - nobody wants to attend a meeting that is meaningless. Setting an agenda that is informative and productive is key to keeping committee members engaged and returning.
Time management of meeting - each agenda item should be timed based on priority of each item. Set aside room for new discussions which are relevant to that particular committee and leave room to have a revisit to old discussions from that day or previous meetings.
Beware of "time killers;" do not let members "beat a dead horse" or revisit an item that was already determined to go in a direction that all agreed upon previously.
"Time saver:" consent agendas allows the board to approve all these items together without discussion or individual motions. Depending upon the organization, this can free up anywhere from a few minutes to a half hour for more substantial discussion.
Familiarization of Robert's Rules, follow if applicable - there may be times, more frequent than you know, when following parliamentary procedure is the most efficient way to run a meeting particularly with an all volunteer group.
Properly delegate - we spoke last week about being an autocratic leader. An effective chairman can not do "it" alone and will need to make sure others are a part of the initiative. Giving certain members particular tasks can also help identify future committee chairmen. You will need to understand a few things here; have your delegates give you a commitment. There is nothing wrong with asking the question "can you give your time and leadership to this imitative?" If the answer is "yes" they have chosen to move forward in the assigned role. If the answer is "no" then you move on to the next candidate. Some will choose to take the challenge others may not.
"Be the fullback" - when you delegate you are given someone responsibility. You may have to occasionally clear the path of any obstacles for your volunteers so they can deliver their charge.
Meeting deadlines - Every initiative (and\or parts of,) has a set time in the future. Others are relying on you, as chair, to meet that deadline.
Engage entire committee - some committees will have members that are sitting on the sidelines. They are there in person, but not in spirit. An effective chairman will draw out participation from all members, either in the group or in private discussions. The chairman needs to be all inclusive
The "Buck Stops Here" - The successes of the committee are group successes. The lack of success falls directly on the chairman's shoulders. Spread the wealth and take responsibility when things don't go as planned. This will, believe it or not, help develop your leadership skills.
Working WITH staff - While this association is volunteer driven the importance in being in sync with HBA staff can not be understated. The flow of the work of the group is much much smoother. But remember, never expect staff to do your "agreed upon beforehand" work. You took on the charge and staff is there to assist, not lead.

A good chairman inspires members to have confidence in the chairman. An effective chairman inspires members to have confidence in themselves.

Next week's article will explain the next level of leadership; the board of directors.

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Submitted by Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chairman

"If your actions inspire others to dream more, do more and become more, you are a leader" ~ John Adams

Leadership - "What Style at What Time?"

2011-10-16T07:58:00.002-04:00

Last week's blog we discussed certain qualities needed to be a good leader. While these qualities are important your style of leadership will dictate whether you go from a good leader to an effective leader. 1.Choosing a style of leadership will be determined by the nature of the initiative and it's overall priority within the HBA. For this article, I will refer to committees, task forces and working groups as initiatives.

What Style at What Time?

There are many styles of leadership but when you break them down, and categorize, you find that each fall into one of three groups. For this blog we will refer to these groups as styles:

Autocratic: This leader is take charge, always in control. He or she will have a strong tendency to micro-manage or completely "run the show."

Participative: This leader delegates, keeping the whole group engaged. Will set a plan, with a matrix, and let's those chosen with certain roles free to carry out their portion of the overall plan. The participative leader will clear roadblocks so others can remain focused and will give guidance if asked and will support a decision if it is consistent with the goals and desired outcome of the initiative.

Free-reign: This leader is hands off and let's the group dictate what the needs and actions should be for the entire initiative.

Free-reign has a time and a place but some leaders to choose to go this path. Some may say it's a good way to lead, to have others set the plan for the group, have others craft the matrix and let others decide the rest. Here is my opinion; others were not asked by the HBA president to lead the initiative. You were. You will be the person others will see when the initiative is not as successful as it could have been. There is a time and a place for "once in awhile" free-reign leadership; things are moving smoothly, goals are being met, volunteers have that feeling of accomplishment. You can not be a successful leader if you start off as free-reign.

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There will be times where you will need to be autocratic, depending on the timeline of the set plan and whether or not the short term or long term matrix is falling behind. Sometimes the volunteers are not performing as they agree to when given the opportunity they chose to take. The leader of this initiative will have to step in and pick up the slack or dropped item.

The particpative leader blends a little free-reign and more than a little autocratic into this style. This leader has a plan set and works with the group. This leader will take full responsibility for lack of results but will give full credit to the members working the initiative and will highlight to HBA leadership those who deserve the accolades. This style of leader will also help to identify future leaders of the initiative and work for an energized transition.

Note: Two other quasi styles/qualities that need mentioning:

Charismatic: This leader is needed when morale is low and motivation has stagnated. Being creative, with passion, is required to achieve the goal(s) of this initiative.

Visionary: This leader will identify tomorrow and all that it has to offer and what changes, slight to radical, may be needed for the future.

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Next week's blog will explain the role of chairman.

Submitted by Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chairman

"If your actions inspire others to dream more, do more and become more, you are a leader" ~ John Adams

Leadership - "Good Leaders Are Not Born...."

2011-10-09T07:51:00.008-04:00

In the last blog post, "The Volunteer," I highlighted the most effective ways to build your professional reputation on the chosen road to HBA leadership. From this point, leadership can go in many directions. Some may be content with their leadership role solely as an engaged volunteer while others may want to move forward and choose to take a deeper role within the HBA. If this is your chosen decision there are something you may want to identify to see if the next levels of leadership are for you. Today's blog will talk about the needed traits that are the foundation for a good leader. These are my opinions that I have gathered over the years from watching some of the greats of our Federation. The most important thing to remember is this; HBA leaders are working with multiple personalities that are VOLUNTEERS, not paid employees. If you could learn to effectively lead volunteers imagine what you can do as a leader in your company with employees. Benefit of volunteer leadership? Management training!

"Good Leaders Are Not Born...."

While they may not be born as leaders they certainly were born with attributes that can develop leadership. If you have the desire and the willpower, you could become a good leader. This desire needs to come from inside. Desire is not a thing you are born with. Desire is created by a "want" or multiple "wants." Passion stokes that desire. The more you want, the greater the desire, the fiercer the passion. Passion comes in many forms and, depending on what region of the country you are from, can be embraced or misinterpreted. One member’s passion is another member’s description of a fanatic. Some areas of our Federation are fast paced and adapt on the fly while others are slower and controlled. While too much passion CAN bring you to the edge, lack of desire or interest will thwart even the most passionate causes. Certain qualities will compliment desire and willpower and help you become not just good but an effective leader.

Let's look at the qualities needed for an effective leader in the home builders association;

Passion - overmastering feeling that delivers a drive for an initiative or objective. I wrote about this earlier; different people have different ways of showing passion. I would rather have a handful of passionate volunteer members as opposed to an army of apathetic followers.
Commitment - when you dive into the water you can't be a little bit wet. Commitment, particularly when others are counting on you, is 100%.
Integrity - honesty, morality and core values. This truly speaks for itself.
Understanding - having an understanding of the possible threats to the building industry is critical to leadership. How can you lead if you don't have the core purpose of the HBA in thought?
Influential (pull, not push) - volunteers can not be pushed. They have their own lives that can sometimes push them, they don't need that treatment when donating time. In order for you to be an effective leader you have to learn, and it will take time, how to pull volunteers in your direction. Highlight the value of their involvement, the value of the initiative and create the want. Like I wrote earlier; create a want which develops the desire and you will pull out the volunteers passion.

Willingness to admit a mistake - when you decide to go in a particular direction, and you realize you were wrong, do not continue because you don't want to "lose face" with the group. People respect others who can admit they are wrong and will be furthered respected by assessing the mistake, asking others for guidance and then move forward.

Ability to listen - Sales 101: Listen. When you do all the talking others will close down shop. Dictatorships fail, democracies prevail.

Decisiveness - when a decision is made, after discussion and direction, make it happen, move forward. The time for additional conversation happens when there is a need to adapt.

Consistency - most people like to know when they work with someone that they have direction, focus and can be relied upon. This consistent approach doesn't mean being flexible. It means being reliable and a straight talker.

You may not have been born a leader but you you may very well have been born with certain traits that could develop and help you become a good leader. You have to have that "want."

Next week's blog will explain the different leadership styles.

Submitted by Michael Kurpiel, CGA, CGP
2011 NAHB Associate Members Committee Chairman

"If your actions inspire others to dream more, do more and become more, you are a leader" ~ John Adams

Note: This series of upcoming blog posts are based on The NAHB Associates power point presentation titled "Unlocking the Mystery of Associate Leadership." Thank you to the New Jersey Builders Association for donating the presentation to NAHB so that our associate members across the Federation could help those who want to contribute their skills and talents in helping the HBAs. ü

Associate Leadership ~ The Volunteer "Every Beginning Starts With A Commitment"

2011-10-02T06:52:00.003-04:00

“In the arena of human life the honors and rewards fall to those who show their good qualities in action.” ~ Aristotle

Joining a local home builders association (HBA) gives you your first start at contributing to the building industry. You are a general member and that in itself is taking action towards helping the industry. Some are very content in being that general member and there is nothing wrong with that position. Without general members there is no HBA. There comes a time when general members are asked to donate time to a committee, task force or an event. They are asked through an HBA publication, speaker at a general membership meeting or "one on one" by a fellow member. Some just read or listen, others have their interest piqued. Those who have that desire to learn more about donating time are about to climb steps that lead to the first level of leadership; An HBA volunteer. In a past blog article titled "Voice of One, Power of Three" we discussed the purpose of the Federation. Understanding the level of membership that you invest your time and what each level brings, in terms of benefit to the building industry, will help you understand the need for volunteers.

Every Beginning Starts With A Commitment

You are interested in investing time and you are ready to make the commitment to HBA volunteerism. Choosing to be a volunteer the first step in becoming an HBA leader. The Federation is built on foundation blocks and one of those blocks is volunteerism. A true volunteer is the back bone to any level of the HBA and always will be. How you choose to participate is up to you and that choice will ultimately decide your reputation. In my opinion, reputation is everything in the business world.

(The Do’s and Don’ts of Building Your HBA Reputation.")

Your local executive officer is your first official conversation. Make your intentions known and ask for guidance on where you could begin. This could be based on your interests or professional discipline or maybe even where there is an absolute need for additional participation. The local executive officer knows all the committees, councils and events and he\she can get you started right away.

When you do start know that there are right ways and there are wrong ways when investing your time and they both come with how other members view you as a professional. For the purpose of this article I will refer to committees, task forces and events as "Initiatives."

Wrong ways:

1. Resume building ~ You join the initiative because you really think it makes you look good to others.

2. Marketing of your company ~ You just want to make sure your company gets exposure by your participation.

3. Over promise and under\don't deliver (sales 101) ~ you join the initiative and agree to take on a certain role in helping the overall initiative and drop the ball by lack of action. "Actions speak louder than words" must have been created for HBA volunteerism!

Any three, or in combination, will give you a short term burst in recognition. However, your "act" eventually wears thin and you'll will earn a reputation for being all about you.

Benefits of the wrong way? NONE. None to the volunteer and none for the HBA.

Right ways:

1. Understand that the "outside" appearance of any initiative helps with social networking, which will lead to business opportunities. This strengthens the most talked about benefit of being a member; making business connections that count.

2. Understand that the "inside" need for the HBA is dollars generated for HBA expenses. In other words, these initiatives help keep the HBA doors open. You may say "It's not always about the dollars!" Yes, directly, or indirectly, it is always about the dollars. Fundraisers like a golf outing? Net Profit generator. Task forces that help with certain problems need to help the members? Keeping them in business means bringing them dollars. If dollars are made, memberships are renewed; again, bringing in the dollar. Every committee has a purpose and if you delve into the need you will see that is always about the dollars. Being about the dollars is NOT a bad thing, it's very much needed. Again, reread "Voice of One, Power of Three" and the "inside" need will become clearer.

3. Under promise and over deliver (again, sales 101). When you volunteer you volunteer by choice. When you make that choice, others within the initiative are counting on you to live up to your choice.

4. Join one initiative. Work at being the best you can be on that one. Time is valuable and when you commit to more than one you will be taking time away from your first commitment as well as your job. Do not over extend your volunteerism unless\until you feel comfortable in your multi-tasking abilities. Do not be pressured to do more than you can give. Some go over board in their

Benefits of the right way ?

1. I have come to the realization that how you act and perform as a volunteer sheds an enormous amount of light on how you are as a professional. Other members will want to be associated with this type of volunteer and this will help you will expand your social capital and develop a reputation as a member who makes "good things" happen.

2. You are investing your time into an organization that is helping to provide you with a career. The ultimate give and take, laws of reciprocity.
3. You should receive business introductions and opportunities as people get to see your commitment and get to know you. This takes time and building a great reputation will always take time.

When in doubt always ask questions. Talk to your initiative chairman or the executive officer for updates on how you are performing. They will, by nature, want to see you do well because you are part of the initiative. At the end of the day what you "put in will eventually come out" and that's how members will remember you.

Leadership begins with a commitment, continues with commitment and ends when the commitment ends. How you handle your committed time will define you as an HBA leader.

Next week's blog will explain the traits of an HBA leader.

Submitted by Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chairman

"If your actions inspire others to dream more, do more and become more, you are a leader" ~ John Adams

Associate Leadership - "Are You Ready to Travel This Road?"

2011-09-25T07:07:00.003-04:00

In a past Association Maximization blog post titled "HBA Leadership: The Ultimate Return On Your Investment" an overview was given on the value of becoming an HBA leader. Please click on the link for this overview and then come back.
Today's blog post starts the first of several parts to my series on associate leadership based on the NAHB Associates power point presentation titled "Unlocking the Mystery of Associate Leadership. Thank you to the New Jersey Builders Association for donating the presentation to NAHB so that our associate members across the Federation could help those who want to contribute their skills and talents in helping the HBAs. While this series is designed help you associates at the local level become more engaged and ultimately part of the leadership team, change Associate to BUILDER in this and the upcoming posts, edit to reflect the difference between an associate and a builder within HBA leadership, and you have Builder Leadership training.

"Are You Ready to Travel This Road?"

When we truly examine the past of our association we see pictures and hear names and stories of leaders from days gone-by. But when you look at our association today most members don't realize that, literally, a lot of blood, sweat and tears built what the members have currently; NAHB and the state and local HBAs. In order to maintain and grow what we have it takes leadership. Leadership just doesn't happen and we can't expect there to be future leaders just because there has always been leaders. Members will always be identified, groomed and mentored as they progress through the leadership roles. The first step is to know the answer to the question "where are these prospective leaders identified as the future?" The the only way I know how to identify future leaders is through a revealing process; volunteerism.

When we look at the avenues each volunteer travels to become an HBA leader there are four "stops" on the road leadership;
1. Volunteers
2. Committee Chairmen
3. Board of Directors
4. Senior Officers

All four have four key components to making each a success; passion, desire and follow-through.
1. Passion, where you feel it in your heart.
2. Desire, where you have the need to contribute.
3. Commitment, where you believe in the mission of the HBA.
4. Follow-through, where the combination of the first three help you "finish what you started."

All four levels of leadership will be discussed including;
1. The "right way" of achieving the level
2. What is required of each level.
3. The benefits to you of each level.

The next several weeks we are going to take a look at all four and break down each so that members, and in this case associate members, understand the process and look to help lead our locals and state associations.
The most important thing to understand, if you choose to move forward, is this simple and clear message; "Association business first, your business second."

Submitted by Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chairman

"Spotlight On: Association Excellence!"

2011-09-18T06:59:00.002-04:00

From time to time, in order for you to continue to maximize your association involvement, I will post to this blog "The NAHB Spotlight"directing your attention to events and programs that can add to your professional career. I can't think of a better spotlighted event to start off and to utilize as we begin next week's start of associate leadership posts.

This spotlight is on The NAHB's "Summit on Association Excellence."
Please click on the website link www.nahb.org/summit and see for yourself what you could, and should, attend. After viewing come on back to the blog.

For those of you who attended The Summit two years ago in New Orleans you know how exceptional that event was and this year's will be better. For those of you who did not attend New Orleans well, you missed out on a great experience. I attended, as well as presented, and was very impressed with the quality of programs and the excitement of the attendees.

The Summit delivers practical, focused curriculum and events to HBA staff and volunteer leaders and takes place in Dallas, Texas November 9 through 11.

The intensive three-day Summit will emphasize:

Recruiting and retaining HBA membership and providing superior member services
Leading an organization in difficult times
Perfecting government affairs messaging and programming

Who should attend

Volunteer leaders at local associations
Current and emerging national leaders
Local association staff

The anticipation level is high and the desire to attend, off the charts. I will be attending once again because of the incredible value and I'm honored, and humbled to be presenting with such an incredible group of speakers. I will be giving the "Association Maximization" presentation which is the inspiration for this blog, on November 10th.

I deeply encourage you to attend; I guarantee you will not be disappointed.
Submitted by Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chairman
"If your actions inspire others to dream more, do more and become more, you are a leader" ~ John Adams

"Always Remember"

2011-09-11T08:24:00.002-04:00

September 11th, 2001 - 2011

Always remember those who died on September 11, 2001, as well the family and friends they were forced to leave behind. God Bless you, will will never forget you.

Bruce Springsteen's tribute to those lost on 9\11
click here>http://www.youtube.com/watch?v
=_SWAt1fosS0

"A Special Thank You"

2011-09-04T06:59:00.004-04:00

"Associates, when given the opportunity to perform on behalf of our industry have been, and will continue to be, amazing."

September Is NAHB Associate Appreciation Month. I would like to personally thank all the associate members, from across the Federation, for all that you do EVERY MONTH to help your local HBAs, state HBAs and/or NAHB. You truly understand that "if it affects builders it will affect associates" and you are all doing your part to support the building industry by volunteering your time and expertise. I would hope hope that all the local and state HBA presidents take the time to send out a "THANK YOU" to their associate members. The builders are the engine and the associates are the fuel. Together we make a perfect vehicle for industry restoration and eventual growth.

I would also like to thank our NAHB Associate Leadership Team and give them justified praise. Their efforts have been beyond amazing and I learn from them each and every day. They are the shining examples of "Federation first, their business second" when it comes to their volunteerism each striving to bring NAHB to everyone's local HBAs with information, education and advocacy awareness with grass roots mobilization.

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” - John Adams said this 235 years ago but he could easily have said it today about these individuals.

2011 NAHB Associate Leadership Team

To all of you..... BRAVO!

Submitted by: Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chair

"Random Thoughts"

2011-08-28T05:11:00.001-04:00

Some would say that this post is really just filler, to get through the end of the summer. You might be right! After the 2011 Fall Boards in Milwaukee, Wisconsin I will be starting an HBA leadership series based on the NAHB Associates presentation that will be online after Fall Boards within nahb.org (shameless plug? Check).

I don't think random thoughts are just for filler, I believe inside voices should be heard out loud every once in awhile so people have an idea of what is going on inside (scary, I know).

I was just thinking this morning about the fact that no matter how hard we try, we are never going to beat Mother Nature (as I write this there is a hurricane bearing down on the New Jersey coast). We can only prepare for her wrath and deal with her anger after she has left the room. No marriage jokes here, those particular inside voices need to stay inside. It's tough to be at the mercy of something that you have little to no control over. Then there are events that can be controlled or at the very least a chance to alter. Legislation comes to mind as an event that can be controlled or altered.

So my thoughts grew and I became focused on the difference between a hurricane and legislation. Both change the way you feel, both change the way you act. One is an Act of God, the other is an act of apathy. We can not change an Act of God, we can adapt and learn a lesson. We can change, however, an act of apathy and all that is needed is an act of YOU. I kept thinking about why the majority of members allow apathy, as it pertains to taking control of their business lives, to settle in an have what's being thrown at the building industry be accepted as an Act of God. I can't speak for others so I'll just wonder out loud.

Another random thought I had yesterday, as I removed any object that can become airborne from my deck and yard, was the myths of the home builders association. I thought about associates becoming upset about lack of business from builders and wondered what they were personally doing to help and not complain. I gave thought to the HBA-old statement "Builders should do business with me, I'm a member!" When I think of that statement my thoughts wander to a fear that associates feel entitled to the business because they joined. I wonder what goes through those members minds. Nobody is entitled to anything. All you have is the right to help yourself and helps starts with understanding, understanding develops into action, action brings satisfaction. Be careful; too much satisfaction brings complacency. Complacency brings you back to the entitlement statement. Don't feel entitled, never be satisfied (business satisfaction is what I'm referring to). You are not going to receive business from the HBA, you will be given the right to the opportunity for business. I wonder why the phrase "nothing in life is given to you" is easily forgotten when it's convenient to the situation.

Really random thought that just entered my mind; The old "Christmas" classic (my thoughts do not have to be politically correct) "It's a Wonderful Life" was about a man named George Bailey, from the fictional town of Bedford Falls, who was shown what life would be like without him in it. One scene connects with me because of the building industry. That scene had George's dad talking about what they do professionally (Bailey Building and Loan) for the people of Bedford Falls. Peter Bailey commented "You know, George, I feel that in a small way we are doing something important. Satisfying a fundamental urge. It's deep in the race for a man to want his own roof and walls and fireplace." This is what we do; we help satisfy humankind's need for shelter. We are all in the most noble of professions. What would our professions be like without NAHB or the state and local HBAs? Not looking for an answer, just trying to make sense of the thought.

I have a lot more random thoughts but I'll share those with you another time when I'm looking for filler ;)

Submitted by: Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chair

Peer to Peer Fundraising: Part 6 "Putting the Pieces Together"

2011-08-21T08:56:00.002-04:00

The Peer to Peer Fundraising series can help you start revamping the way you traditionally solicited for PAC dollars. What we need to do now is put together a strategic plan to help you begin, and sustain, the "new" way of fundraising; investment in the PAC.

Just like a jigsaw puzzle, there will be a clear and defined picture once all the pieces are placed together. Its a jumble until then but the effort makes it worth it. How do we go from a jumble to completion?

Part 6 "Putting the Pieces Together"

First, let's recap by laying the pieces out on the table. Based on what we discussed in previous posts we have;

1. What doesn't work.

2. Political synergy.

3. Why you should care.

4. Common roadblocks.

5. What type of fundraiser is best and the type of member the fundraiser will have their best success securing an investment.

Now what?

Step 1 - "PAC Trustee 'buy in.'" In order for you to begin you have to recruit your current PAC trustees. Peer to Peer starts with them and will end with them if they are not part of the process from the beginning. Your PAC Chair will need to dedicate time at a trustee meeting to go over the material in the series of presentations to see what will work and what may not work.
Note: If the size of your PAC board of trustees is small, maybe non existent, recruit your HBA board of directors. After all, the primary focus of the HBA is advocacy.

Step 2 - "Engage the members." Once the trustees are on board with the material, each trustee needs to be assigned small groups of members, no more than 10 at a time. The members should be invited by the HBA president and PAC chair through personal invitations to the selected members.

Step 3 - "100% saturation." Continue until entire membership has been contacted. This process should continue until all your members have been invited. If you have members who didn't attend after the first attempt, phone calls need to be made and have them say to you personally they can or can not participate.

Step 4 - "Direct members." While 100% of your membership is admirable as a goal your actual target should be 100% of your builder members and 100% of the directly impacted associates, such as suppliers, trade contractors and service providers who have the vast majority of the business derived by the success of homes being built (home owner warranty companies and title companies as examples).

Step 5 - "Continuing education." Demonstrate to your investors your advocacy successes and highlight the approaching threats, keep them aware at all times. Out of sight out of mind. Quarterly PAC newsletters or emails detailing their "return on investment" will make your job easier at retaining them as regular PAC investors.

Step 6 - "Start 'em young." New members should have PAC orientation as part of becoming a new member. Added benefit; this also shows the new member the purpose of the HBA from the beginning.

Putting all the jumbled pieces together will ultimately bring the mythical puzzle of PAC investment to the forefront and build stronger, more engaged components to the political synergy I wrote about in part 2 of this series.

This process sounds time consuming, and it certainly is, but the road to increasing your membership percentage in PAC investments has to start somewhere. This is the reason you need dedicated trustees to have this effort be a success.

There are some who will "think they know it all." If they do why aren't they as successful as they could be with raising political awareness along with raising dollars? How many trustees can point to the members they brought in to PAC originally and can say that those same members come back year after year because of what they were taught?

The Peer to Peer Fundraising techniques will one day, if it becomes and remains successful for you, replace events to raise those dollars. Those events can enjoy the net profits being utilized for HBA operating. But until that day happens you will probably still need PAC fundraisers. Sometimes they'll need to be educational, most times for the enjoyment of the members. Just remember to keep the FUN in FUNdraising when you plan. We all could use some fun these days.

Submitted by: Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chair

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NOTE: This article is based on a section from The NAHB Associates presentation "Peer to Peer Fundraising." This type of fundraising will work on all of your HBA events or fundraising initiatives you may have; you just have the supply the core reason for the fundraiser and demonstrate a value to the potential investor.

Peer to Peer Fundraising: Part 5 "Two Types of Fundraisers, Two Types of Members"

2011-08-14T07:33:00.000-04:00

There are two types of fundraisers and both are identifying two types of members. It is really that black and white. I will explain why one fund raiser gets immediate results while the other builds for continued political investment. We will also discuss the two types of members and I'm not talking about builders and associates.

Part 5 "Two Types of Fundraisers, Two Types of Members"

"The Hunter" ~ Think about it for a moment. A hunter goes into the woods in search of his prey. Eventually the object of his quest appears....

Ready... Aim... Fire... Done.
One shot, one kill, over.

The hunter in fundraising has a similar approach. The potential PAC contributor (not investor) is targeted, money was asked for and a check was written. One target, one ask, one check, over. The hunter was able to "bag his 1 for the PAC" but did not set up the potential for the future.

The Farmer ~ The farmer tills his ground, plants the seeds for his crop. He will supply water and nutrients to aid in the growth of his crops. The farmer knows that he will have continued growth of crops by taking the time and care to nurture.

The farmer in fundraising will "plant the seeds" of political synergy into the member's mind. He will carefully supply the member with the nutrients which I'll describe as visions of business opportunities. This will almost guarantee that the member being tended to will continue, just like crops, to invest (not contribute) to the PAC.

The differences between the hunter and the farmer, when it comes to fundraising, are very simple and they apply to what we experience within the HBA. The hunter gets one contribution while the farmer has "sown the seeds" for a continuous investment in the building industry.

Any PAC, local, state or NAHB's, has to have our members understand the importance of the PAC. To give and not understand is pointless. To give because you want to make a difference is the strength of our Federation, our industry.

A farmer knows what ground is fertile and what ground is not even though both look the same. Which brings us to the two types of members I mentioned in the beginning.

When we think of members within the HBA we think "builder" and we think "associate." Those are the only two classifications of members we have. What I'm talking about is to identify the two types of members that are "fertile" and who are "not so fertile." Those members are classified as DIRECT and INDIRECT.

Direct ~ A direct member is a member who is directly affected by issues affecting the home building industry.
1. Builders and remodelers.
2. Supplier of product that goes into a new home or renovation.
3. A trade that is needed to help construct a new home or renovation.
4. Any service that solely handles the construction of a new home or renovation.

This group has one purpose when it comes to our industry and that purpose is the start and completion of a new home or remodel.

Indirect ~ is any member who can sell his or her product outside the home building and remodeling industry.
Examples:
1. Insurance companies.
2. Financial services
3. Lending institutions.
4. Law firms
5. Advertising agencies

The list is long so I'll stop with 5 examples but hopefully you will understand that the indirect member is diversified and can work with many industries, not just housing.

How are the direct member and indirect member different when it comes to political fundraising? The direct has a need for the housing industry to be protected while the indirect member, not so much. Understanding this will help you cultivate a list of potential PAC investors (direct) who will continue to invest or hunt for contributors (indirect) who will sponsor a PAC event when times are better. Indirect members will not invest in our industry's defense on a regular basis because housing is not their primary focus.

Knowing whether or not the member is affected by positive or negative initiatives in our nation's capitol, or in your state capitol, will go along way with becoming successful with Peer to Peer fundraising by streamlining your efforts based on the potential PAC investor's need.

Next week's blog we will tie all of the Peer to Peer blogs together and develop a strategic plan for your fundraising efforts.

Submitted by: Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chair

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Peer to Peer Fundraising: Part 4 "Common Road Blocks"

2011-08-07T07:19:00.002-04:00

Road blocks are really just excuses in disguise. When some one wants to evade a question there are may ways to avoid the financial ask. It's the old "I can't hear you because I'm going through a tunnel" tactic. It's tough, I won't deny it; overcoming peoples objections to taking money from their wallet and handing it over to you is the ultimate test in persuasion. To clear the roadblock and not get detoured I am going to give you the most common objections, as well as mistakes and misconceptions, with possible ways to persuade the potential political investor that maybe they just don't have any objections at all. Knowing what makes up the HBA's political synergy (described in Part 2 from this series) can really help you to engage the prospective PAC investor. Understanding possible responses to objections may not get you a "yes" but if you don't engage at all the answer will always be "no."

Part 4 "Common Road Blocks"

There really is only one mistake when asking for PAC investments; you need to understand when asking for the investment do not preach. You may have all this new or refreshed information about political synergy but who you are speaking with (not to) most likely doesn't. It's very easy for those in the "absolute know" to become frustrated that others don't invest already. No one likes being lectured and people will have a tendency to shut down your words in their mind and regard your attempt as "wasting your time."

Don't get on your soap box and preach just because you understand the message. By utilizing the information you know, you are able to teach the potential investor the reasons why and then you can handle the objections in an easier way. Sales 101 clearly states "ask open ended question." Ask them questions about political synergy such as "how do you think the HBA protects the building industry?" By engaging them in conversation they will feel that you are not just looking for money; you are helping them understand.

Don't Preach, Teach!

"Tell me and I forget. Teach me and I remember. Involve me and I learn" a quote from Benjamin Franklin that rings true in any time.

Let’s go over two of the most common objections you will be given. We are all sales professionals, whether it's selling homes or selling products and services. The reason you receive a "no" is because you didn't supply a "need" or a reason to commit.

“Low on Funds, No Business!”

Low on funds, particularly in today's economic climate, is a valid concern. When you take an investment dollar amount, let's call it $100, you can't just say $100 dollars. That is looked at as a whole. Break it down into manageable dollar amounts such as $1.93 per week. $100.00 divided by 52 weeks is $1.93. A large cup of coffee is $2.75. An iTunes download is .99 cents. A 16 ounce bottle of water is $1.50.

In other words, you need to demonstrate how low the asking investment cost truly is in the (pardon the over used phrase) grand scheme of things.
No business is an easier road block to navigate. No business is the primary reason to invest in the PAC. HBAs are fighting everyday, on everyone's behalf, to bring relief to the home building industry. If you plan on being in business in a year, and beyond, a continued yearly investment helps to insure that you will have the opportunity to stay in business.

"Conservatives v Liberals, Republican v Democrats"

"I don't contribute to PACs. They tend to contribute to candidates I don't support because I oppose them on issues that are unrelated to the housing industry. My personal contributions are candidate specific."

How's that for a "NO?" The process within political synergy is to identify legislators or candidates that support housing as well as political leaders that are in prominent "seats of persuasion." I am not saying to ignore each potential investor's political views. I'm explaining that being employed is better than being an R or a D. I have my own political views, and while it feels great to stand on my moral high ground, it feels better to be employed and providing for my family. The housing industry doesn't support one party or another. They support the candidates who are for our industry's recovery and stability. If the potential investor truly earns a living for home building teaching them about the HBA political synergy will demonstrate that HBA staff is doing a fantastic job identifying who support us and who are not interested in helping the home building industry. When you invest you invest for a return. What better return than pro housing legislation which in turn helps you to keep earning?

Now let's talk about BUILD-PAC and the objections, or misconceptions, for investing nationally. Understand that the two previous objections are given on all levels of PAC as well but now we have the objection to contributing federally.

"Which PAC is more important; local & state or NAHB's?"

Builders are most directly affected by local and state governments. Federal politics affect builders all over the country. The United States Congress is the only government entity that has the power to help our industry right now. Contrary to Tip O'Neill's popular belief not all politics are local. We live in a new world, "global housing" economy. A balance has to be achieved when investing in PACs, within a particular state and NAHB. When people invest they generally invest dollars in multiple areas. The same holds true for our industry's PACs. The available dollar is a lot smaller today and members will want to feel that their investment is helping. Demonstrate examples of national victories as well as state victories and what affect it has on homes being built, in turn, products and services being sold.

One last road block that has nothing to do with asking for a dollar investment is asking other members to invest time, volunteering within the political synergy.

"Time is short, I can't volunteer"

I only have one answer for that statement and it is a bit harsh but it is reality. If you aren't working you'll have all the time you'll need. Don't rely on others to "handle it." Become a part of the association that takes positive action which benefits everyone's livelihoods.

Next week we will discuss the two types of fundraisers and which style is best. We will also take a look at the two types of members we ask to invest, and no, I'm not talking about builders and associates.

Submitted by: Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chair

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Peer to Peer Fundraising: Part 3 "Why Should YOU Care?"

2011-07-31T07:55:00.008-04:00

"The Great Housing Industry Depression" has taught us quite a lot but the most important lesson will help us deliver a better explanation on why members should care about political investing. That lesson is what happens when some initiative tries to slow down or stop housing.

This post, which will be short but extremely to the point, should help the general member clearly understand the reasons why they should care as we hope to stop the apathy attached to investing in our PAC.

Part 3 "Why Should You Care?"

In our last post we brought political synergy to the forefront and explained the working parts of a cohesive effort. Now we will show you exactly why you, the builder member should care.

Let's list for the builder the "problem" areas:

1. Government legislation

2. EPA regulations
3. Environmental organizations
4. The N.I.M.B.Y. (not in my back yard) mentality
5. Or any other anti-housing group

Pick anyone, combine a few or just add them all together. They have one thing in common; the desire, obsession in some cases, to slow down or completely shut down home building.

What we are experiencing right now is not necessarily the affects of any of the 5 listed items, but number 1 can most certainly HELP our efforts to get back to work sooner rather than later.

Quite a few builders have been in this business most of their adult lives. Some are second or third generation builders. That is a testament to their love of home building.

The affects of legislation or regulation certainly can hurt us at any time if we are not a sturdy Three-Legged Stool (see Political Synergy post). Builders pay for many types of insurance but the majority seem to have an "I could care less" attitude about investing in the PAC which is like a political insurance.

Why should associate members care?

Take a really hard look at the picture above with the "sorry, we're closed" sign. Exactly what our industry has been experiencing.

Now take a look at this picture below:

Dramatic? Yes. Is it realistic? Unfortunately for quite a few, yes.

We have stressed in multiple posts before this; "if 'it' affects a builder 'it' will affect associates." We stressed this for a reason and we are all living it right now with lack of sales. "Why SHOULDN'T you care" is the question I have for you. This is harsh, I know. I fully expect some members to be taken aback by the "out of work associate" picture. However, if I turned one associate around by this by lifting the political apathy, well then I have brought one more passionate member into our grass roots efforts. I'm quite positive that I have more than one associate thinking about all of this.

Finally the ULTIMATE reason why you, the member, should care:

There are 4 types of members in our Federation:

1. Those who make things happen

2. Those who watch things happen

3. Those who wonder what happened

4. And the worst of all; those who sit back and watch things happen and then complain the loudest when those things do happen.

Which type of member do you want to be? Do you care?

Next week’s blog post will be about common objections to investing and how to turn those objections into non issues.

Submitted by: Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chair

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Peer to Peer Fundraising: Part 2 "Political Synergy"

2011-07-21T13:04:00.070-04:00

Merriam Websters Online Dictionary defines synergy as "a combined action or operation." A second definition is "a mutually advantageous conjunction or compatibility of distinct business participants or elements (as resources or efforts)."

I have read and heard how the builders association is a special interest group. If building homes where people live and create memories, or earning a living to provide for your family, is a special interest well I would agree. I believe a career in the home building and remodeling industry is very special and we need more members to participate in order for our industry to thrive again.
Part 2 of our series on political fundraising will focus on "The Process" which is how our HBA staff, along with engaged members, work within the legislative arena to protect and promote home building and home remodeling. This is an important message to understand as you make your ask for investments in the PAC. Keep in mind, that the legislative process may be different from state to state but not by much. I will focus on Washington, DC and you can design your message for your state. I will be abbreviating certain areas but the message should come across.

Part 2 "Political Synergy"

Let's start this post with what is a PAC and we will work our way into the grassroots parts in a moment so you can see the make up of political synergy.

PAC stands for a Political Action Committee and most, if not all, industries have one or multiple. Each state HBA and multiple local HBAS have their own political action committee with different acronyms but the purpose is the same; to have members of the HBA invest in the building industry's protection and growth. With an industry as highly regulated as ours you better believe, like you believe you need air to breath, that politics affects everything the builder does. As an example, I will focus on NAHB's BUILD-PAC, which stands for:

Builders (note: If it affects builders it will affect associates)

United

Legislative

Decisions

Political

Action

Committee

BUILD-PAC looks to its NAHB membership for yearly investors and, with the help of their BUILD-PAC trustees and dedicated members, brings in the dollars needed to maintain and grow a noteworthy PAC.

The next part of the political synergy always begins with an idea, which becomes proposed legislation. It can be any idea which could cause an affect on the building industry. Good or bad, doesn't make a difference. What does make a difference is the path the idea takes on it's way to becoming law.

Below is a flow chart diagram of how an idea, once it becomes sponsored and becomes a bill, navigates its way through the political process. Take notice of the arrows on both the House side and the Senate side.

Keep going back to the diagram, and the arrows, as we continue.

Here is where we begin the discussion on the grassroots addition to political synergy.

NAHB Government Affairs staff track multiple bills, many many bills. They assess the impact, if any or how much, each will have on the housing industry. When a bill comes up that would have an affect, let's take THE HOME CONSTRUCTION LENDING REGULATORY IMPROVEMENT ACT, H.R. 1755, as an example, staff will begin the process of determining the pro/con impact.

( Click here for details on this bill > http://www.nahb.org/fileUpload_details.aspx?ContentID=156407 )

NAHB staff will start to make contact with federal legislators that can help move the bill in a positive direction. Staff will ask politically engaged members, from the legislators districts back home, to support of the bill, possibly be a sponsor. This is staff and members working together in "a combined action or operation." Synergy.

Go back to the arrows. Each one shows an area that staff and members, working as a cohesive unit, can make a direct impact on the bill's progress. As it goes through the house staff will also be working to get the bill moved through the Senate, which in turn shows more arrows or areas of staff/member influence.
Any area where you see an arrow is an area that momentum can be gained or lost depending on the determination of the political synergy. This is also the case for a bill that can have a negative impact. The same exact areas of influence are present and this is where staff and members work to end the process. This is not unique to the building industry, every industry goes through the same exact process.

Once the bill passes through the House and the Senate it goes to the president. When the president signs the bill it becomes law.

Once it's law, it's law.

You may be asking why this is so important to explain during Peer to Peer fundraising. It's very simple; complete political synergy is the size of the PAC, professional staff and members who are educated and passionate.

In essence, the political synergy becomes what we, as members, always talk about:

The Three Legged Stool

Without staff it can't support.

Without engaged and passionate members it collapses.

Without a sizable PAC it will fail.

Losing anyone of the above legs would cause our advocacy efforts to be unstable and ultimately derail while strengthening all three provides tremendous support. Legislators always look at the amount of votes they can generate in their districts and they will also look at the amount of campaign dollars that can be contributed. It's been this way since time immemorial. In other words, we didn't create this process but we better be able to work this process.

During the arrow time slots in the above diagram each legislator we speak to will have done his/her homework on what the HBA brings to the table before decisions or directions are made. That's politics. The above stool really is a great way to show the prospective PAC investor what they can't see but they can feel.

There is so much more that goes on within this process but I have given you the broad, brush strokes. I would recommend you speak to your HBA president, PAC chair and/or executive officer for more detail than I have shared with you here. Understanding the political synergy and how it affects builders and remodelers, and in turn associates, is key when discussing political investments.

Next week we will discuss why YOU, the HBA member, should care about understanding the above and the need to invest in your future.

Submitted by: Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chair

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Peer to Peer Fundraising: Part 1 "What Doesn't Work?"

2011-07-17T07:44:00.009-04:00

"What Doesn't Work" is the title of this post and, I know, this is supposed to HELP you with your fundraising efforts, not criticize. If this series of articles is going to help you understand how to effectively fund-raise we have to start off with things that really do not work to the degree we would all hope. Please take my comments regarding what each and every HBA does for member contact as it pertains to fundraising as "tongue in cheek" but with some truths in the observations.

Part 1 "What Doesn't Work?"

The need for political fundraising occurs and the usual group of members gather and come up with an idea for a fundraiser. Now most ideas are worthwhile while some are just not going to produce interest from the members. I'm not going to tell you what are good ideas and what are bad ideas. Each area of the country decides that based on demographics and regional make up. However what I will tell you is that all the HBAs go about it the same way:

1. Need for dollars.

2. A meeting to discuss fundraising event.

3. Decision on the event is made.

4. The usual process for "the chasing of dollars" begins:

Mass mailing to general membership

Yes, the old tried and beaten method is up and running again. The idea for a PAC event is sent out to the entire membership with the hopes that the envelope was attractive enough to gain the recipient's attention long enough so that your PAC mailing is opened.

What we don't know is how much mail the general member receives on a daily basis. Your mailing could very well end up here:

You just might have some success in getting the member to really give your mailing enough attention that they will sign up for the event. But then again, when they see the dollar amount that you're asking for the mailing maybe left on that cluttered desk or it may be filed below in the circular filing cabinet:

Next?

Advertised and announced in your HBA publication

It look good, doesn't it? Your event in color and for all to see. It explains the particulars and, of course, there is probably a registration piece and the dollar amount. Most newsletters that are sent to members offices usually end up go to their "library:"

Think about it and be very honest; am I right or am I right?? I don't mean to be graphic but when you are in "read mode" the chances of you calling your HBA to sign up for the event, and are also ready to write a check or give your credit card number over your cell phone at that precise moment, is slim to none. The chances you may bring the publication with you from the "library" may be slightly better. Mostly likely your publication will be placed with a three year old Readers Digest and The Bathroom Game Book.

Next?

Blast emails to your membership distribution list

The email is drafted and approved. The distribution list is selected, BCC of course, and you click send. That was extremely easy. Your email is now going to quite a few members and we know that the internet is fast and reliable. How could your members not sign up now?

Along the way your email hit a few snags.....

I think you're getting the message. Mass mailings, publications and distribution list email blasts just are not that effective. But all hope is not lost, you have a general membership meeting between now and the PAC event.

Here's probably what you'll do:

1. HBA president will speak to the audience or

2. the PAC chairman will speak to the audience or
3. the executive officer will speak to the audience or

4. SOMEBODY from the event planning committee will speak to the audience.

The audience, if they are like the average general membership meeting audiences, will be engaged in conversations at their tables and not really focused on the speaker explaining the event, talking about "how much fun you will have and please fill out the forms that are in front of you on the table." The forms generally stay on the table after the event.

Let's face it, if any of the above methods worked there would really not be a need to use the remaining methods. Now, what do all four of these commonly used methods have in common? There is no member to member contact, no peer to peer. It's all done in blocks of many members with each method given the singular member of the multiple members an opportunity to ignore the PAC event because the bottom line is the perceived view on how this affects their own bottom line. You've given each member a chance not to participate.

Would an associate, as an example, stand up in front of a large group of builders, or use any of the other methods, and hope for a sale? Not if they truly want to be successful persuading the builder to buy their product or service.

In order for PAC fundraising to be successful you have to speak to members one on one or, at the most, in a manageable group, where intimate discussions can take place. In order for you to persuade members to invest in the PAC and\or a general event, you have to explain how the political process as well as how the synergy of the HBA staff and members work within that political process.

Next week I will write about the legislative process and how HBA staff and active members blend their efforts to work within that process. This will help you with the structure of what the general member doesn't see but certainly feels. If you understand it will help you become more persuasive in your ask for an investment.

Submitted by: Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chair

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"The Art of Political Fundraising”

2011-07-10T06:53:00.006-04:00

You can't see it, but it's there.

You can’t touch it, but it’s very real.

You experience it everyday, yet you can’t quite understand it’s affects on you.

It’s the political process I’m speaking about and the reason why we have a home builders association (HBA) political action committee (PAC). The average member doesn’t fully grasp the reason they are asked for a PAC contribution or the importance of attending an event that is designed to raise dollars for the PAC. And yet we, as volunteers, keep looking for ideas for events that hopefully will bring members out because of the event, not because of the purpose.

The HBA’s process of PAC fundraising is very deep and detailed and if the average member understood it, they would happily invest in the PAC. Most HBAs take the easier road of having events in the hopes of raising the needed political dollars but can’t understand why it has to be so difficult to have members just give their fair share.

We are not educating our general members. We are not explaining the process, which has many facets, and how it develops our industry’s protection. We assume every member should know why we ask for PAC dollars. Assuming is the easy thing to do. It takes relatively no thought and apathy is the general explanation when a fundraiser is not successful because of low attendance.

These series of posts will focus on the only true way to ask for investments in our PACs; Peer to Peer. You will read the word “investment” over and over again. The only way some one will part with hard earned money is to show a return. Political fundraising is an art because you are “selling” something that can’t be seen, can’t be felt but only can be experienced without understanding what it is. People who learn how to ask for political investments, and be very successful at doing so, will understand that the have develop a very productive skill; the skill of persuasion. If you can persuade you can do most anything you put your mind to doing. By becoming a successful PAC fundraiser you will sharpen your sales skills. Helping the industry overall and becoming better at your job; that is a great combination.

Peer to Peer; it works for everything else we do. Associates don’t normally work with their customers without contact. Builders and remodelers can’t have contracts signed without customer contact. Your chances of “closing the deal” are GREATLY enhanced with personal contact. So why should PAC fundraising be any different?

It shouldn’t be different and that’s my point. If we are so successful the “other” way why do we have nationally only 2.5% of our members investing BUILD-PAC? Are you successful at your local or state? And by successful I mean is over 50% of your membership investing in your PAC?

Next week we will start with the old standards of fundraising and why you are wasting valuable time on only a handful of members.

NOTE: What you will be reading is based on The NAHB Associates presentation "Peer to Peer Fundraising." This type of fundraising will work on all of your HBA events or fundraising initiatives you may have; you just have the supply the core reason for the fundraiser and demonstrate a value to the potential investor.

Submitted by: Michael Kurpiel, CGA, CGP

2011 NAHB Associate Members Committee Chair