Annual Reports

What did 2010 Teach Us?

While HBAL spent much of 2010 educating its members, the association was also able to learn from the last eleven months.  As leadership and staff prepared for the year, they made changes to the way the association did business in an effort to better position members to succeed in the face of many challenges that were ahead. The underlying theme behind every change was –and still is – to connect HBAL members with their consumer.



Promoting Tax Credits
Much of the first quarter of 2010 was devoted to educating members (and the general public) on how to make the most of the federal tax credits that expired in April, as well as the state tax credit, which expires this month. In keeping in line with HBAL’s goal of connecting members with consumers, the association was busy with public relations efforts to capitalize on the statewide “Buy New. Buy Now. Save Thousands” campaign. HBAL assisted members in promoting the tax credits through a variety of mediums, including speaking engagements and grassroots efforts to better explain how consumers could benefit from purchasing a home prior to the deadlines.

The biggest challenge of selling new homes in the 2010 market has been the ability (or willingness) for prospective buyers to try to sell their current homes. Many builders reported that interested buyers were unable to act because they feared losing money on their existing house. New homes that were selling were being purchased by first-time homebuyers, who didn’t have the burden of trying to sell their homes before they built. The $8,000 federal tax credit was enough of an incentive to get homes in the lower-end price ranges moving, but left higher-priced homes still sitting on the market. The $6,500 tax credit helped many mid-price range buyers, but the momentum was still heavily focused among starter homes. Buyers had entered a cautious, careful, wait-and-see approach to home building that has sustained, and HBAL members have had to adopt a similar level of patience in lieu to embracing the market rebound they had anticipated. 

According to HBAL Executive Vice President Chuck Kavanaugh, the lesson behind this was perhaps the most important one of 2010 -- there was a new home buyer in town and if HBAL members didn’t adapt to this new mentality of marketing to that buyer, they would find themselves on the slow, long road to nowhere.  Kavanaugh, the HBAL staff and leadership set out on a mission to educate members about how to appeal to today’s home buyer in Greater Louisville -- a mission they expect will take them into 2011.  They adopted the “new year, new economy and new attitude” focus and began helping members focus on working smarter in 2010.

Promoting the Value of New Homes and the Louisville market:
HBAL placed heavy emphasis on the value of buying a new home over an existing one, with specific emphasis on energy efficiency, low-maintenance, safety and the benefits that floor plans in newer homes have. Kavanaugh’s “Heading Home With Chuck Kavanaugh” presented through Louisville’s Best New Homes continually promoted the values of a new home to the general public.  Borrowing from NAHB Chief Economist David Crowe and other reputable industry experts, Kavanaugh discussed emerging trends in new residential construction and offered facts that support stability in the local market, including home price appreciation and Louisville’s national rankings.

One of the most successful demonstrations of the value of a new home was Homearama 2010.  “This year’s Homearama was definitely ahead of the curve and right on the mark in regard to showcasing what the new consumer wants in a home,” commented HBAL Director of Public Affairs and Communications Tara Brinkmoeller.  “The homes offered smaller footprints, higher-end amenities, beautiful park-like lots, a great location and each was energy efficient. The event created a lot of buzz and was very positive for promoting the value of a new home,” she added.

HBAL events and its publications continually promoted the value of new homes and the uniqueness of the Louisville market. The recently published Greater Louisville Relocation Guide provided consumers with a blueprint for what makes Greater Louisville a great place to live and work. In addition, it also created a sense of pride for people already familiar with its charm and vibrant communities.

Educating Members
HBAL made a focused effort to educate members through every outlet, whether it was the Louisville Builder magazine, an SMC meeting, HBAL Happenings or general membership meeting.  While keeping an eye on the national home building landscape and future building trends, staff and leadership also offered members powerful talking points and tools to help better position their businesses to survive in the competitive landscape in 2010.  By providing educational seminars and courses conducted by leading professionals in various housing-related industries, HBAL members were kept up-to-date on new technologies, improved construction methods and changing demographics.

Information is power, and members were eager to learn more about how to appeal to today’s buyers. HBAL meetings included educational sessions that focused on the art of pre-selling homes without specs and communicating the benefits of new homes versus existing homes to buyers. In addition to educational sessions, there were round table discussions that included a variety of local experts in the industry, discussions on the local economy and updates on how Louisville compared with the rest of the country.  In addition to hot topics such as social media networking, green building and energy efficiency, HBAL offered lead renovator training classes for members affected by the Environmental Protection Agency’s new lead renovation, repair and painting rule. As a result, more than 30 eight-hour certification training classes were offer at HBAL.

Upcoming programs will educate members on consumer market trends and buying habits and how members can get their businesses in front of them. In addition, HBAL offers the expertise of its staff to members who want to learn more about social media strategy, using online videos and making sure their web pages are effectively reaching consumers.



Governmental Affairs Efforts
This year’s governmental affairs efforts were nearly non-stop. Association representatives stayed tuned in to what’s going on at a variety of levels and maintain a line of communication with officials ranging from local mayors to politicians on Capitol Hill. Kavanaugh, Tara Brinkmoeller, along with several members, spent countless hours monitoring the campaign platforms of candidates in key elections in Jefferson County and surrounding counties.

In June, the Commercial Council sponsored the first mayoral debate since the primary in May. Approximately 400 real estate and building industry professionals gathered to hear candidates Hal Heiner (R) and Greg Fischer (D) describe their priorities for Louisville.  In addition, HBAL members represented the industry through efforts to be involved with key issues surrounding home building, including 21st Century Parks and a regional sanitary sewer system, among others.

Impressive ticket sales for HIPAC created an exciting buzz around the October event that raises money for HBAL’s Housing Industry Political Action Committee.  “We sold out before the event once again,” commented Brinkmoeller.  “Our three, wonderful, deserving members agreed to split the pot and it was a great night.  As a result, we were able to make several contributions to important races,” she added.  In regard to governmental affairs efforts, Brinkmoeller commented on the tenacious efforts  of committe members to communicate the importance of the local building industry to candidates for office.  “In the Metro Mayoral race, we’re fortunate to have been able to establish positive dialogues with both candidates, who have been very willing to work with us and understand what our industry is facing.  No matter who wins, we’ll have a good partner in either,” she added.

Click Here to watch highlights from the 2010 Mayoral Debate sponsored by the Commercial Council



Events Designed to Connect Members With Consumers
The Trend Appliances Home, Garden & Remodeling Show in March offered an interactive experience by engaging consumers to research prior to the event as well as afterward through the website and various media outlets. The new Home, Garden & Remodeling Show Magazine, which doubled as a program guide was mailed to nearly 30,000 households prior to the event and distributed to more than 20,000 customers at the Show gate. Plans for producing this year’s program guide are currently underway.

The Home, Garden & Remodeling Show presented by Window World will be held March 11-13, 2011 in the South Wing B & C of the Kentucky Expo Center. In 2011, consumers can expect to enjoy a new layout and exciting new features, in addition to a change in venue within the Kentucky Exposition Center and a date that’s one week later than is traditionally planned. 

HBAL introduces a new event designed to heighten awareness about the products and services available for homeowners.  The locally produced Home Product Expo will be held January 15-16, 2011 at Paroquet Springs Conference Centre in Shepherdsville, Ky., and serves as a teaser for the upcoming Home, Garden & Remodeling Show presented by Window World in March. With more and more buyers doing more research and taking more time making buying decisions, the new event provides them with an additional opportunity to become acquainted with businesses prior to the traditional spring buying season.

The 2010 Homearama presented the “dream home” in a different light -- one that perhaps made imagining building a new home more feasible than many people expected. Builders expertly recognized that the kinds of homes consumers want to build are quite different from years past.  Homearama generated a significant amount of media coverage, which highlighted the uniqueness of this year’s event and proved that people were still curious to see what builders had to offer.  Participants reported positive results and leads and the enthusiastic response for the types of homes on display encouraged builders to keep their focus and keep listening to what the new consumer wants. Homearama 2010 served as an example of what today’s consumers want in a new home and how builders are creatively responding to those desires.

The 2011 Homearama will be held in Norton Commons and will feature more than 20 home sites. “HBAL trend watchers report that people want to be able to live close to where they work and play and the blended community atmosphere of Norton Commons will offer a new twist to Homearama next year,” Brinkmoeller added.

The Annual Tour of Remodeled Homes once again shed light on the talents of local remodelers, with more than 20 home sites on display.  The upcoming show in 2011 is set for August 13-14.
 
Member-to-member events such as the Builder/Remodeler Appreciation Night held in February were also designed with a specific focus of connecting clients with consumers. It produced a great turnout of participants who were eager to enjoy the festive atmosphere and opportunities to win big prizes. The event returns on February 8, 2011 under the former name of Table Top Night and will offer incentives to network and share information to help drive business.

How did HBAL do business differently in 2010?
HBAL changed the way it did business, much like many of its members.  With fewer staff than in years past, and re-thinking each event and opportunity to connect members with consumers, HBAL worked hard to position itself as a resource for members.  In addition, it held fewer board meetings in an effort to cut down on expenditures and free up the time of board members so they could focus on their own businesses. In addition, the association combined meetings such as general membership meetings and SMC meetings to cut costs and offer more information, with less investment by members of time and money. 

Moving Forward in 2011
HBAL will continue to represent members by working diligently with banks and regulators to help improve the process for appraisals and getting approved for loans.  With a mission of creating a fair business environment for small businesses in Greater Louisville, HBAL will continue to promote the home building industry and strive to position the association as a resource for small businesses. Additional emphasis will be placed on how HBAL uses technology to connect members with consumers and how the association serves as a resource for both members and the general public.  By continuing to embrace the opportunities this new year holds for the home industry, HBAL encourages members to use their association to help them succeed in 2011.

Watch the 2011 Executive Committee talk about their plans for 2011: