SAHBA Blue Print

Chairman's Message

Digging in to tackle the challenges of 2008

Randy Agron , Chief Operating Officer
A.F. Sterling Home Builders

As we begin 2008, many of you, like me, are probably glad to see 2007, one of the most challenging years in homebuilding, finally come to a close. Although 2008 will have many of the same challenges, I believe it will provide the industry, and especially the members of SAHBA, some exciting opportunities.

I would like to thank Art Flagg of KB Home for his exceptional leadership in his year of “Being There.” Even with the year Art faced, his commitment and guidance to SAHBA was an inspiration and testament of his character.

I look forward to Art “Being There” again in 2008. Thanks Art!

Our local governments now realize the direct effect on their bottom line of the housing slowdown. In 2008, we must begin the process of working together on solutions to the numerous fees that have caused a severe affordability crunch for those wanting to buy a new home.

Normally, local homebuilding contributes more than $2 billion a year; if our local governments choose to do nothing, the effect on our entire economy could be devastating. To provide the needed help for our industry and the entire local economy, SAHBA will be working towards a reduction or waiver of certain impact fees; a moratorium of permit and connection fees and legislation that adds time and money to the cost of building; and deferring the payment of fees until closing.

Although it may be unrealistic to expect success on all our initiatives, we must make sure local governments understand how close they are to finally killing the golden goose, known as the homebuilding industry.

As we continue to ride the current downturn in the residential business cycle, similar to your business, SAHBA will be focusing on new revenue sources, preserving cash flow, and making operations as efficient as possible.

I encourage everyone to get involved. We can only be as successful as you, our members, make it. To help ensure SAHBA remains the premier homebuilding trade association, I urge everyone to continue building quality homes for our community with the utmost professionalism and integrity.

And of course, “Being There” will never go out of style.