December 2014

December Calendar of Events
All Events held at HBA office unless otherwise noted 

5) Holiday Breakfast, 8:30-10am @ cafe noma
     New Orleans Museum of Art in City Park
10) Education Committee Meeting @ 2:30pm
10) NOEL Board of Directors Meeting @ 3pm 
10) Executive Committee Meeting  @ 4pm
11) Councils Happy Hour, 5-7pm
     Bulldog Mid City, 5135 Canal Blvd
15) Home & Garden Show Board Meeting @ 4pm
16) HBA Board of Directors @ 4pm 
17) Day of Education (6 CE), 9am-5pm @ Fidelity Branch, 1811 Metairie Ave., Metairie
18) Parade of Homes Committee Meeting @ 1:30pm
19) Associates Council & Membership Task Force Meeting, 8:30am
24-26) Christmas Holiday, Office Closed
Featured Event

Holiday Breakfast 
at cafe noma in the New Orleans Museum of Art, City Park

Friday, December 5th, 8:30-10am
$25 per person
Welcome, Rita Bautista!
HBAGNO Governmental Affairs Representative

Rita Bautista is the new Governmental Affairs Representative of the Home Builders Association of Greater New Orleans. In her last position, she
worked as the Executive Assistant to Grammy Award winning Irvin Mayfield; Artistic Director of the New Orleans Jazz Orchestra. Ms. Bautista graduated in May of 2012 with a degree in Interdisciplinary Studies with a concentration in Business and Urban Society. She is a member of Sigma Lambda Gamma, National Sorority, Inc., which is the largest multicultural sorority in the nation. Once graduated, Ms. Bautista helped found the first alumnae association for Sigma Lambda Gamma in the state of Louisiana. As an advocate for the community, she serves as an advisory board member of Son of a Saint, a board member for the New Orleans African American museum, a committee member of the LatiNola Votes campaign, and also volunteers for Puentes. 
2015 Board of Directors Installation

Congratulations to our newly installed President, Roy Olsen, Landis Residential Builders, LLC, and the rest of our 2015 Board of Directors. 
Fernando Arriola installing Senior Officers: Floyd Simeon, Michael LeCorgne, and Frank Morse
2015 HBAGNO Board of Directors

Multifamily Council Chair, Michael Kraft, Inducted as 2015 Apartment Association President

Congratulations, Michael! We look forward to a year of your leadership, and the strengthening of the local multifamily industry.
2015 Apartment Association of Greater New Orleans Board of Directors
Michael Kraft at the installation ceremony with HBAGNO EO, Jon Luther, and HBAGNO Past President, Peter Young.

Delgado Student Chapter Members Receive Scholarship Awards

NAHB Student Chapter Members Eddie Reyes, Lynn Greco, and Marcio Martinez were recognized at the October GMM for their outstanding performance in the Delgado ... program. The award winners are pictured below with their teacher, Victor Mirzai.


Congratulations also goes to Woodward architect Juan Burciaga, recipient of Delgado's 2014 Circles of Excellence Outstanding Alumni award! From Delgado to LSU to Woodward, Juan has worked tirelessly for his Architectural License and serves our clients and projects with excellence. Juan is a former member of the Delgado Student Chapter. We're proud of Juan and all his achievements! 


Maintaing Certificates of Insurance

Maintaining Certificates of Insurance can save you time and money at audit, as you must furnish proof that each subcontractor used during the policy period had workers' comp coverage in force for the policy period, or that payroll was reported for the work performed. Always make certain the certificate dates correspond to the time frame worked by the individual subcontractors. When it
comes to maintaining certificates of insurance on file, it helps to know the CODE.
  • Confirm the effective dates of coverage and expiration before work begins.
  • Obtain Certificates directly from the workers' comp provider or the agent of the sub.
  • Do not accept certificates listing "For Bid Purposes Only" or "To Be Determined" as the certificate holder.
  • Examine the certificate to make sure it provides Louisiana benefits if you hire subcontractors from out of state.
LAWORKS.NET, a website accessed through the Louisiana Workforce Commission, is a tool to help determine whether a subcontractor has or had coverage on a specific date.
  • Go to; Select "Businesses" and then "Workers' Compensation".
  • Under Compliance, select "Employers' Workers' Compensation Coverage Verification".
  • Enter the displayed code to access the Search functionality and select "Submit".
  • Enter the subcontractor's name in Employer Name.
  • For Coverage/Injury/Illness Date, leave blank when checking coverage for the current date. You may also enter a prior date, but you cannot enter a future date.
  • Select "Search". If the subcontractor has or had workers' compensation coverage for the date entered and the insurer or group self insured fund has properly reported their data to NCCI, the search will return policy information.
Users may now also receive email notifications when a subcontractor's workers' compensation policy status cancels. This is a newly offered feature from LAWORKS.NET. Take advantage of this feature and save time and money at audit.

NOTE: Certificates of Insurance should always be obtained prior to a subcontractor working on your jobsite. LAWORKS.NET is a service offered to assist you in maintaining your COI file. LAWORKS.NET is NOT a substitute for obtaining COIs, as not all WC carriers report data or report timely to NCCI, from which LAWORKS.NET coverage data is obtained.


SIF Dividend Update

The SIF Board voted to distribute a $2 Million dividend to qualifying members in March 2015. This will be the second dividend paid this Fund Year, and will bring the total dividends distributed during the 2014 Fund Year to $3 Million and the total returned to date to nearly $76 Million.

The audited financials for the 2013 Fund Year (ending 3/31/2014) are complete. The HomeBuilders SIF has once again posted outstanding results. Net income before member distribution and provision for income taxes for the fund year was $2.9 Million. Total written premiums for the Fund Year were $20 Million, with total revenues of $23 Million. Total Fund assets now exceed $69 Million.

2015 RATES
Based on an actuarial rate analysis, the SIF Board voted to leave rates as is for the 2015 Fund Year. Since 2008, the SIF has effectively reduced rates by nearly 30%.

Elliot Eisenberg
Dangerous Deflation 
Elliot Eisenberg, Ph.D.,
GraphsandLaughs, LLC

On the surface deflation sounds wonderful. Rather than rising prices, deflation results in declining prices. In this way, purchasing power rises, effectively giving everyone a pay raise. Better yet, deflation is accompanied by near zero interest rates making borrowing cheap. What on Earth could be better! It turns out, almost anything.
When people expect falling prices, they wait as long as possible before making large purchases, such as a car or a house because the longer you wait the cheaper the item becomes. Similarly, deflation breeds a strong desire on the part of households and firms to hold cash as it continually appreciates. By contrast, inflation creates an incentive to spend since cash falls in value over time.
Deflation is not simply falling prices, which can be good, but is also characterized by falling wages, not so good. In a deflationary environment, due to a lack of demand for goods and services, firms fight for market share by slashing prices. By doing that, total revenue falls, forcing firms to pay workers less. However, since reducing wages of existing employees is hard, companies first hire fewer workers, then lay workers off, which leads to stagnant wages and eventually rising unemployment, which forces workers to accept lower wages.
Deflation also creates a reluctance to borrow, since loans have to be repaid in future dollars that are worth more than those borrowed. Think about it - if you have a mortgage payment that is $750/month and inflation is 4%/year and your income keeps up with inflation, your mortgage payment becomes a smaller and smaller percentage of your monthly income. But if deflation is 4%/year and your income falls by that amount each year, that $750 mortgage payment can quickly loom large and dramatically crimp spending.
As a result, borrowers find that the real amount of their debts rise over time. In response they save more to compensate and in the process spend less. Of course, lenders are better off, but they do not increase their spending by as much as debtors decrease theirs. As a result, overall spending levels decline more.
Exacerbating this problem, in a deflationary economy banks have little incentive to lend, as the only way to entice borrowers is to offer negative interest rates. But in this case, the more banks lend, the more they lose. As a result, banks do little lending, firms struggle to grow and many of both fail, causing wages to fall. In the end, consumers buy little more than essentials and everyone holds on to as much cash as possible. Not a pretty picture.
Lastly, deflation makes it essentially impossible for central banks to set interest rates low enough to stimulate demand. While central banks can set rates at 0%, it's hard to get below zero. With inflation of 3%, a zero interest rate is a -3% real interest rate. But with -1% deflation, a central bank would have to offer an interest rate of -2% to achieve the same -3% real interest rate. While theoretically possible it's impossible in practice.
Because of chronic falling wages, reduced spending and limited lending, deflation is something to be avoided. Once it takes hold, it's inordinately difficult to get rid of. Japan has been struggling with deflation for decades and is now employing desperate measures to eliminate it, with limited success and high costs. We don't want to wind up like Japan.

Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at [email protected].  His daily 70 word economics and policy blog can be seen at
From Last Month...
Jeff Parish Seal Jefferson Parish: 2015 License Renewal / Wind Load Certifications
Submitted by: Tiffany Scot Wilken, Director
Inspection and Code Enforcement

Greetings from the Department of Inspection and Code Enforcement for Jefferson Parish. Please be reminded all 2014 contractor licenses issued in Jefferson Parish expire on December 31st. License renewals for 2015 are now being accepted and processed at the Eastbank and Westbank offices of Jefferson Parish Department of Inspection and Code Enforcement. Renewal forms are available at under Inspection and Code Enforcement or at either office. Although we have been working diligently to provide you and your sub-contractors online renewal capability, we cannot be assured how soon this will "go live." All current license holders will be notified as soon as the online renewal capacity is available. Renewal forms are available at under Inspection and Code Enforcement or at either office. Fees are: $75.00 for each renewal until December 31, 2014, $105.00 January 1 - March 31, 2014, $150.00 April 1-December 31, 2015.
Also in an effort to serve you better, please know that the wind-load certification will no longer be required prior to requesting a framing inspection. Upon inspection of framing, if any deviation(s) are noted or if clarification is required, the design professional will be asked to address any such deviation(s) and/or deficiencies.
Great day on the links!
Congratulations to all our winners of the 2014 Fall Golf Tournament!

1st Place Team - A-1 Appliance, Electronics & Bedding
Brent Bates, Mick Johnson, Lynn Taylor, Wayne Murrell

2nd Place Team - LAS Enterprises
Joey Maia, Miles Lipari, Richard Maia, Mike Wibel (Not Pictured)

Three members of the A-1 Team pictured with Golf Tournament Chairman, Gene Chierici
Contest Winners
Longest Drive (Men)
Robert Donnelly, Fidelity Homestead Savings Bank
Longest Drive (Women)
Dorothy Stanich, EnviroGreen Insulation
Closest to the Pin
Lynn Taylor, A-1 Appliance, Electronics & Bedding
Best Putt
Randy Mason, Morse Homes, Inc.

THANK YOU to our Sponsors!

2-10 Home Buyers Warranty
A-1 Appliance, Electronics & Bedding
Bevolo Gas & Electric Lights
Builders Risk Insurance
Crescent City Remodeling
EnviroGreen Insulation
Fidelity Homestead Savings Bank
Fifth District Savings Bank
Healthcare & Retirement Solutions
Hoffman Custom Homes
HomeBuilders SIF
Klumb Forest Products
Landcraft Homes
LAS Enterprises
Lumber Products
Mass Mutual
Merrill Lynch - The Lovell Group
mlc works
Mr. Green Jeans
Person Huff CPA Group
Renovate, Inc.
RL Mills , Inc.
Roofing Supply Group
Supreme Ford of LaPlace
Terrebonne Insurance Agency
Forest Stewardship Council Recognizes Conservation Champions
HBAGNO Members RoyOMartin Recognized

At a time when many organizations are building strategies around environmental and social responsibility, the Forest Stewardship Council lauded a dedicated group of leaders in an awards ceremony at Greenbuild 2014 in New Orleans.

Co-hosted with the World Wildlife Fund and Green Sports Alliance, the 10th Annual Design & Build with FSC Awards also added the first FSC Leadership Awards, which were given to organizations and people who have long championed forest conservation and leveraging markets to promote stewardship. 

"Like salmon swimming upstream, the award winners have worked tirelessly to protect forests and create change in the marketplace," said Corey Brinkema, president of the Forest Stewardship Council US. "They are used to being told 'it can't be done' so they know that true leadership requires resolve and determination, usually in the face of strong currents protecting the status quo," he added.Winners of the FSC Leadership Award are as follows:

* RoyOMartin for leadership in forest and land management
* Kimberly-Clark for leadership in corporate commitment
* Domtar for leadership in the paper sector
* Scholastic Inc. for leadership in the publishing sector
* C. F. Martin Guitar for leadership in the music industry
* F.D. Sterritt Lumber for leadership in building materials supply in the East
* Sustainable Northwest Wood for leadership in building materials supply in the West
* Columbia Forest Products for leadership in the building materials manufacturing sector
* WWF's Global Forest and Trade Network for leadership in the nonprofit sector
* Jameson French for strong individual leadership
* Richard Donovan and Dr. Robert Hrubes for long-standing dedication to FSC and leadership through an uncommon partnership

Winners of the 10th Annual Design & Build with FSC Awards are as follows:
* Washington State University Visitor's Center designed and built by Olson Kundig Architects and Sellen Construction, was the Commercial / Institutional Winner for Creativity and Innovation, for acting as "an advertisement for wood," according to jury member Lloyd Alter.
* Kum & Go Gas Stations was the Commercial / Institutional Winner for Market Transformation, in recognition of the fact that 95% of the wood in the stores is FSC certified, and that they expect to certify their 100th store under the US Green Building Council's LEED program by the end of 2014.
* Levi'sŪ Stadium, home of theSan Francisco 49ers, for being the first stadium home to a professional football team to earn LEED Gold certification as new construction and for using more than $1.8 million worth of FSC-certified products in the stadium.

"These award winners show that we can protect forests and still have plenty of wood and fiber to meet demand," Corey Brinkema said.

Design & Build with FSC at Greenbuild 2014 was made possible by the generous support of sponsors. The Home Depot was the Platinum Sponsor and Kimberly-Clark was the Gold Sponsor. Collins, Columbia Forest Products, F.D. Sterritt Lumber, Mendocino Redwood Company, RoyOMartin, SCS Global Services, Tork, and US Floors were Silver Sponsors. FSC sincerely appreciates their support.

FSC also wishes to thank the jury members who selected the Design & Build Award winners, including Richard Piacentini (Phipps Conservatory), Derrick Teal (Environmental Design & Construction Magazine), Leigh Ann Purvis (RoyOMartin), Lloyd Alter (, Erin Ryerson (USGBC Louisiana Greenbuild host committee), Shannon Stage (USGBC Louisiana) and Mara Baum (HOK).
Elliot Eisenberg
Unintended Consequences and Slower GDP Growth 
Elliot Eisenberg, Ph.D.,
GraphsandLaughs, LLC

Over the past 60 years GDP growth has been spectacular, averaging close to 4%/year with GDP doubling every 20 years. More recently, GDP growth has been lackluster, averaging about 2%/year since 2000. As a result, GDP now doubles every 35 years. In part this slowdown is due to the recession, slowing population growth and a lack of corporate investment in plant and equipment. These are temporary problems that should not be overblown.
By contrast, those who believe in "Secular Stagnation" ascribe the recent GDP slowdown to the fact that our economy is mature, that our best days are behind us and that technology can no longer deliver like it has. While I think the notion of Secular Stagnation is bunk, our GDP growth of the last century or century and a half has been, without a doubt, artificially inflated. This is because we have ignored the "law of unintended consequences."
Every time we invent something new, more often than not, something unexpected goes wrong. Burning coal, which brought about the industrial revolution, badly fouled the air leading to the premature deaths of millions. The automobile helped usher in acid rain, gaining access to cheap sugar created tooth decay, working at computers all day is making us fat, asbestos causes lung cancer, antibiotics create super bugs, aerosol almost destroyed the ozone layer, leaded gasoline lead to lead-poisoning, chemical dumping and the burning of fossil fuels releases mercury into the air and from there, rainfall washes it into the ocean and into fish. And now we face the enormously expensive issue of global warming. (And don't even ask about Dodd-Frank).
My point is not that technological progress is bad. Quite the contrary, it's great, but it's not quite as great as we think because the negative consequences arising from it are never accounted for. The premature death of a coral reef, the rise in skin cancer rates and the eutrophication of coastal waters - to give just a few examples- are ignored when calculating GDP. And these costs, along with the costs of remedying these damages are both large and unknown. Moreover, monies spent cleaning up the messes caused by technological progress actually make GDP bigger. Now that we are more aware of "unintended consequences" we may be less optimistic about the future. And GDP growth going forward may be slower than in the past, but this is not due to Secular Stagnation. It's simply a sign of economic maturation along with a better awareness of our impact on the planet.
Moreover, this realization should not cause us to give up on technological innovation. As a matter of fact, the only way to fix the problems mentioned above is with more technology. Genetically modified food is the only way we are going to feed the fast growing population of the planet and the impact of global warming and rising sea levels will only be mitigated with new building technologies and improved energy sources, even though they will undoubtedly cause unintended consequences.
Compared to 10, 20 or 30 years ago, GDP growth appears to be slowing. Some of the reason is cyclical, but some is because our estimates of earlier GDP growth were excessive because we did not take into account the unintended consequences of new technologies. What is for sure is that if we stop designing and applying new technologies to solve problems, GDP growth will slow further.
Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at [email protected].  His daily 70 word economics and policy blog can be seen at
 E-Classified Listing
Bayou Oaks Estates 
A 31-lot West Bank Subdivision, 
15 Lots Remain 

Will wholesale remaining lots in a package to a responsible builder. 
Attractive financing with release clause.

Contact Don Villarubia
NAHB Online Courses Logo
In This Issue:
Holiday Breakfast
Welcome Rita Bautista!
Board of Directors Installation
Delgado Student Chapter Members Recognized
Maintaining Certificates of Insurance for Subs
Editorial: Dangerous Deflation
From Last Month
Online Education Available
Put Your Membership To Work

Thank You to our E-News Sponsors!    


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HBAGNO offers our members the opportunity to list homes for sale for FREE on the Consumers Page of the HBA website.  


Click Here to list your new homes.

QuickLinksQuick Links & Resources

* Under Compliance, click on Employers' Workers' Compensation Coverage Verification
2014 Senior Officers of the Board

President, Brian Mills
Vice President, Roy Olsen
Treasurer, Floyd Simeon
Secretary, Mike LeCorgne
Immediate Past President, Scott Morse

2014 Board of Directors

Steve Albert
John Arms
Fernando Arriola
Stacy Blair
Nick Castjohn
Ric Darling
Charlie Fontenelle
Phil Hoffman
Jo Ann Kostik
Michael Kraft
Pierre "Peter" Lanaux
Ben Laws
Bruce Layburn
Frank Morse
Helmut Mundt
Lynda Nugent Smith
Rolf Parelius
Kimberly Rooney
Zach Tyson
Kirk Williamson
Steve Wobbema
Wes Wyman
Peter Young
HBA Staff Contacts

Jon Luther, Executive Vice President
Lauren Galliano, Director of Membership & Industry Relations   [email protected]g
Shane Gray, Accountant  [email protected]
Philip Thomas, Education Director & NOEL Program Director  [email protected]   

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