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As a homebuilder that grew up in Anchorage, dedicated hundreds of hours towards the rewrite of Title 21 and applauds the Mayors attempt to take a small step towards easing the pain that the proposed rewrite would levy on the wallets of Anchorage home buyers; I find Tuesday’s letter short sighted and offensive.

 

I don’t think that we should call the Mayor’s efforts to NOT price our work force out of the housing market a “Body Blow”.  Nor do I think it “Beautifies Anchorage” to promote a land use code that raises cost without providing value thus encouraging it’s workforce to commute from the Valley.

 

One size fits all solutions don’t really work and will discourage creative design.  The Architects, Engineers and Homebuilders supporting the Mayor’s revision of T21 are the same people volunteering to clean the ROW, coaching youth sports, passing you on the trail up Flattop and writing this letter.  We don’t want to ruin Anchorage and believe me when I say that the Mayor took a step in the right direction.

Title 21 Re-Write’s negative effect on Housing Affordability

Andre Spinelli, President Anchorage Home Builders

 

As we wait for the Municipality of Anchorage to release the final version of the Title 21 re-write (Land use and Zoning Code) that will go before the Planning and Zoning Commission for Public Hearing on November 14th at 6:30 p.m. at the Assembly Chambers of the Loussac Library, I thought it would be a good idea for everyone to take quick look at the impact of the new code (as it is currently on the MOA website) on the cost of entry level home.

 

When the process of re-writing Title 21 began there was an Economic Impact Analysis done that excluded the single home.  Below I show you what happens to the cost of your new home when you compare your budget with the revised Title 21’s NEW REQUIREMENTS. 

 

  • 21.07.080.E.8 Trees in Residential Developments – Title 21 NEW REQUIREMENTS are double or triple the number of trees and makse them taller.  165 tree units per acre.  The average house on a ¼ acre lot 165/4=41.25 units.  A 6’ evergreen=6 units and a 14’deciduous =4 units.  The average number of trees installed today is three per house.  Title 21 NOW REQUIRES 10 trees at a cost of $5000.  $4,100 cost increase.
  • 21.07.110.F.2 Mix of Housing Models – Choosing a different floor plan costs nothing but unfortunately all the buyers choose the best plans over and over.  Title 21 NOW REQUIRES a mandatory mix of housing models.  5 houses = 2 plans, 11 houses=4 plans, 21 houses=5 plans.  With all the new taller trees who will even notice? Not to mention that Turnagain on the Westside and South Addition in Downtown are examples of great neighborhoods with repetitive house plans that nobody seems to mind.
  • 21.07.110.F.3.a,b&c Primary entrance Location – Title 21 NOW REQUIRES front door must be clearly visible from the street, must be covered and must have a hard surfaced walkway. This doesn’t sound that bad but why is the MOA telling where to put my door?  Also at my house I actually have meandering flat rocks leading to my front door surrounded by grass which would not be allowed.  Put your stereotypes aside about who is supporting this code because I can’t think of any environmental groups that encourage more asphalt pavement than current code. Title 21 NEW REQUIREMENTS cost of covered porch $400.
  • 21.07.110.F.4.b Garages – Garage doors shall comprise no more than 60% of the total width of the building’ elevation.  If you were planning to have a two car garage we might have to stretch the width of your house. Garages in building less than 40 feet wide will also be additionally penalized.  You have three lists and you MUST choose one item from each list.  Title 21 NEW REQUIREMENTS must include front facing balcony, decorative covered entry, additional detailed trim on all doors, windows and roof edges.  Title 21 NEW REQUIREMENTS costs of garage changes $1750.
  • 21.07.11.F.5.a Windows — Title 21 NOW REQUIRES that windows and primary entrance shall occupy 15% of the elevation.  If you add a slider door and a deck per the list above the total of the elevation is 70 sq ft and you are required to have 92 sq ft of windows out front.  Title 21 NEW REQUIREMENTS on windows is $750.

 

All of the Title 21 NEW REQUIREMENTS add up to a total of $7,000. in additional costs and I was very modest with my pricing.  I also have not factored in the cost increase of the permit to build the house because the MOA has stated that the cost of the permit will not increase but this is very foolish at best.  How can you add so much new regulation to review and inspect without thinking that there will be additional cost? Maybe if you just don’t think about it? In this example I used a house that would typically costs $250,000 that $7,000 is a 2.7% increase in the cost of the home. Title 21 NEW REQUIREMENTS will impact the housing market by making it much harder for the average Anchorage resident to afford a home.

Number of Improving Housing Markets Nearly Doubles in October

by Vicki Portwood October 6, 2011 AHBA News

WASHINGTON, Oct. 6 – The second edition of the National Association of Home Builders/First American Improving Markets Index (IMI), released today, shows 23 individual housing markets now qualifying as “improving” under the new gauge’s parameters. This is nearly double the 12 housing markets that made the list last month. The index reveals metropolitan areas that [...]

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2011 Parade of Homes Winners!!!

by Vicki Portwood September 23, 2011 AHBA News

BUILDER PRICE RANGE AWARD ADDRESS Cody Homes 190-240 best design 252 Glenn Abbey Place Cody Homes 190-240 best exterior 252 Glenn Abbey Place Cody Homes 190-240 best interior (tie) 252 Glenn Abbey Place Hultquist Homes 190-240 best interior (tie) 4526 Campbell Park Loop Cody Homes 190-240 best kitchen 252 Glenn Abbey Place Cody Homes 190-240 [...]

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Free Construction Training

by Vicki Portwood September 16, 2011 Educational Opportunities

The Anchorage Construction Academy provides basic construction training for adults who are seeking skills that can lead to a good-paying job in the construction industry. Are you looking for a great paying career in construction? We offer basic construction skills classes in: Carpentry Welding Electrical Plumbing Health & Safety Trades Math Application Deadline: September 30, [...]

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Vote for Your Favorite in the Parade of Homes

by Andre Spinelli September 9, 2011 Parade of Homes

The 2011 Anchorage Home Builders Association (AHBA) Parade of Homes is this weekend, September 10-12! Thank you for taking the time to consider what may be in store for you this year. All of the single-family, condo and townhouse style homes in the Parade (as you may already know) are required to be completely finished [...]

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Now is the time for private plan review and inspections!

by Vicki Portwood September 6, 2011 AHBA News

For several years now we at the Anchorage Home Builders Association (AHBA) have been experiencing difficulties in getting timely service from the Municipality of Anchorage (MOA) Department of Development Services.  The impact to the residential construction industry is huge.  As of June ’11 new home starts are below June ’10 and down by over half [...]

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Power Up Your Communications Skills

by Vicki Portwood August 31, 2011 AHBA News

THURSDAY, OCTOBER 13, 2011 12:00 – 3:00 PM INSTRUCTOR: RITA EMMETT LOCATION: WILDA MARSTON THEATRE LOUSSAC LIBRARY — 3600 DENALI STREET COST: MEMBERS $39** NON-MEMBERS $79 **If a member brings a guest, admission is 2 for the price of 1! Communication is the key to relationships at work, at home, anywhere. Yet, did you know [...]

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Who Claimed Energy Tax Credit

by Vicki Portwood August 29, 2011 AHBA News

We saw this excellent article about the increase in use of tax energy credits on the NAHB blog, and encourage our members to learn about the changes. In 2009, the rules for the tax code section 25C $1,500 energy-efficient improvement tax credit and the uncapped 25D 30% tax credit for home power production equipment tax credit were significantly expanded. The 25C [...]

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Standing Up for Housing, thanks Rep. Don Young

by Vicki Portwood August 16, 2011 AHBA News

Standing Up for Housing As lawmakers mull whether the mortgage interest deduction should be on the chopping block in order to rein in the growing federal deficit or change the federal tax code, Rep. Do Young should be commended for co-sponsoring H.Res.25, a House resolution which expresses the sense of Congress that the mortgage interest [...]

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