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Home builders care about the people who buy the homes we build, and as an industry we are always striving to improve and build homes that are affordable, safe, energy efficient and comfortable. We take seriously any issue that could have an impact on consumer satisfaction with new homes.

The National Association of Home Builders, of which the HBA is a part, publishes research and guidance and develops educational programming to keep members current on critical issues. Almost 40 years ago, NAHB founded the not-for-profit NAHB Research Center, one of the premier institutions in the country devoted to applied research on building technologies, materials and products. Federal, state, and local government agencies, manufacturers, builders, and remodelers rely on the expertise and objectivity of the NAHB Research Center.

The NAHB Research Center has published a white paper on the causes of mold, health issues, prevention and clean-up guidelines as well as a list of resources developed by outside organizations including the Environmental Protection Agency and Centers for Disease Control. "Mold in Residential Buildings" is posted on the Research Center web site, http://www.nahbrc.org/.

The NAHB Research Center provides ToolBase Services-a resource for technical information on building products, materials, new technologies, business management, and housing systems-to NAHB members and the public with funding from the Department of Housing and Urban Development (HUD) and other industry sponsors. ToolBase is collecting information on mold problems and providing information to builders and consumers on the prevention and clean-up of mold.

The Science of Mold

• We do not believe that most home owners have to worry about the structural integrity of their homes due to mold or worry about becoming ill from mold in their homes.
• What we do know is that mold spores are everywhere in indoor and outdoor environments, and that people are exposed to airborne spores daily. It is practically impossible to avoid mold spores, unless you stay indoors in a "clean room" environment.
• Molds need three favorable conditions to grow: 1) a temperature range between 40 and 100 degrees Farenheit; 2) a food source-wood, paper or other organic material; and 3) moisture.
• Mold growth can be controlled and exposure to mold spores minimized through home owner attention to excessive moisture, such as persistent condensation on window in the winter, and hygiene practices and maintenance.
• New homes today are very energy efficient-they use 50 percent less energy than houses built in the early1970s. Energy-efficient construction usually includes air-sealing the building envelope to reduce outdoor air infiltration. To maintain a safe level of moisture, home owners may need to remove, reduce or ventilate moisture sources. When doing so, home owners should follow the instructions in the home maintenance manual they received from their builder.

Dealing with Mold Problems

• The most practical approach to limit mold growth is early detection and prompt resolution of excessive moisture. If you can see mold or detect an earthy or musty odor, you can assume you have a moisture problem that must be resolved to arrest mold growth.
• The NAHB Research Center has published a primer on mold that references several guidelines for preventing mold growth and for cleaning up mold. Visit nahbrc.org for detailed information.
• State health agencies and other experts do not recommend testing as a first step to determine if you have a mold problem. Mold sampling can be expensive and requires special equipment and trained technicians to acquire reliable samples and test results. In addition, there is no consensus on a single standard for judging what is an acceptable concentration of mold.
• Home owners who decide in favor of testing should consider engaging the services of a qualified laboratory and technician. Additional information on qualifications home owners should look for is available from the NAHB Research Center at http://www.nahbrc.org/.
• Consumers may contact the home building industry's technical information resource, the NAHB Research Center ToolBase Hotline, at 800/898-2842, or toolbase@nahbrc.org, if they have questions about mold prevention or cleanup.

Health Issues

• Mold is everywhere in our environment, and people are exposed to it every day. Health effects depend upon the type and amount of mold to which a person is exposed and the sensitivity of the person exposed. Some individuals experience no reaction after mold exposure. For those individuals with a sensitivity to mold, the most common reaction is allergic. People with weakened immune systems may be more vulnerable to infections by mold. Healthy individuals are usually not vulnerable to infections from airborne exposure to mold. Currently, to our knowledge, there are no authoritative studies establishing a reliable, scientific connection between mold and the more serious illnesses that are being alleged.
• According to respected scientific bodies like the Environmental Protection Agency and Centers for Disease Control, among others, there is very little scientific evidence linking mold with serious human illness, particularly considering the low levels of exposure in most homes.
• We caution home owners against overreacting if they do discover mold in their homes. Any mold in the home should be treated seriously, and that home owners should act immediately at the first signs of mold and excessive moisture. Removal of mold can only be successful when the moisture source is resolved.

Resources

• Talking Points help members address the legal, health and construction issues surrounding mold with the best information we have to date. Visit nahb.com.
  
  How to Limit Mold Growth, a tip sheet on mold prevention for homeowners and tenants available to members on nahb.net.
• Mold in Residential Buildings, an NAHB Research Center white paper on the causes of mold, health issues, prevention and clean-up guidelines as well as a list of resources developed by outside organizations including the Environmental Protection Agency and Centers for Disease Control. The white paper, posted on nahbrc.org, also includes a Q&A that you can use in responding to questions from members and the public. Visit nahbrc.org.
• ToolBase Hotline, a service of the NAHB Research Center funded by private industry and HUD through the Partnership for Advancing Technology in Housing (PATH) program that provides technical information to builders and consumers. Call the hotline at 800-898-2842 or e-mail toolbase@nahbrc.org.
• Controlling Moisture in Homes, an NAHB publication explaining the types and causes of moisture problems in different climates; how to control moisture; how to correct existing problems; and containing a useful list of references. Visit www.builderbooks.com.
• Residential Construction Guidelines, an NAHB publication that establishes criteria for fungi and mildew on finished exterior and interior painted surfaces. Visit www.builderbooks.com.
• Residential Water Problems: Prevention and Solutions, an NAHB publication that describes techniques and procedures for determining and eliminating the source or water problems before, during, and after construction of new homes. Drawings, photographs, charts, numerous case studies, and real-life examples clarify these techniques, procedures, and tips. The five chapters cover sources of water and control methods; prevention of foundation leakage; treatment of foundation leakage during construction; treatment of leakage after construction; examples of problems and solutions. Visit www.builderbooks.com.
• Moisture Protection of Wood Sheathing, a pamphlet from the NAHB Building Products Issues Committee. Visit www.nahbrc.org.
• A Builder's Guide to Handling Mold Claims and Litigation includes guidance on alleged health effects, causes of mold growth, limiting mold growth, responding to homeowners and investigating claims, cleaning up water-damaged materials and mold, retaining remediation experts, record-keeping, legal claims and types of damages, lawsuit defense, filing claims against other parties and insurance coverage. Visit nahb.net.
• NAHB web sites will offer updated information on mold to members (on nahb.net.) and consumers (on nahb.org).

Media training helps spokespeople prepare for interviews on this controversial topic. Call NAHB Public Affairs at 202/266-8061 for a schedule of training opportunities.

Staff Contact

David Jaffe, Esq.
NAHB Product Defect & Legal Research
202/266-8317
djaffe at nahb dot com

How To Choose a Home Builder

Homebuyers Should Start by Selecting a Reputable Builder

• The first step homebuyers should take in their search for a new home that provides lasting satisfaction is to select a professional builder who is known for quality construction and strong customer service.
• Most home builders construct fewer than 10 homes per year and as small local business persons, rely heavily on referrals from previous customers to generate new business.
• As such, a home building company is only as good as its reputation. Most home building companies are in business to stay and they can only do so to the extent that they have satisfied customers. In fact, many builders live in the communities they build.

Steps in Selecting a Reputable Builder

• Homebuyers should begin their search by discovering who is building in the area where they want to live. Below are several sources homeowners might find helpful:
  
  
  1. Some of the best builders rely on referrals and do not advertise. Talk to friends, relatives and colleagues at work who have recently purchased a new home or had one built.
  2. Local chapters of the National Association of Home Builders can provide names of companies who are members. In the Dallas area, click on Search for Builders on thisweb site.
  3. Area real estate agents, familiar with new home construction, can offer builders' names and insights into quality and customer satisfaction.
• To narrow their prospective list of builders, buyers should look closely at each builder's finished work and work in progress, including models, occupied homes (if interested in a custom-built home) and homes under construction.
• Meet with the builder or the person who would be in charge of building your home to learn more about the company and the homes they build. Are your questions answered clearly and completely? Remember that your relationship with the builder will continue through the warranty period, so choose someone with whom you will be comfortable for the long term.
• As part of the interview process, review the contract, warranty and warranty standards that the builder provides. Note the amount of detail provided. The same attention to detail usually flows through the construction of the home. Don't hesitate to ask questions about any items that you don't understand.
• Many builders today provide a homeowner manual that guides buyers through the homebuilding and purchase process. This type of manual can familiarize you with the procedures the builder follows in working with his/her clients and is often an indication of the builder's commitment to customer satisfaction.
• To determine how a company treats its customers, it is important for prospective homebuyers to talk to previous buyers of the builders' homes. Visit communities on weekends when people are more likely to be outside and ask several different people how the company was to work with and how satisfied they are with their home.

A Well-Written Contract

• Disputes between parties often involve good faith issues that their contracts do not adequately address, either because the parties did not consider these issues or because the failed to write them in the contract.
• A well-written contract is a critical tool for reducing liability. It should: 1) be a product of the parties' negotiations, 2) describes in detail the rights and obligations of the parties, 3) fairly allocates the risks inherent in the project.
• Such a contract provides the parties with a mutual understanding of contract terms and conditions, thereby improving the chances that each party's expectations will be met.
• A well-written contract helps prevent disputes from arising during construction because the parties have settled potentially troublesome matters such as the scope of work, the materials to be used, and the time and method of payment before the project begins.
• Although a well-written contract requires communication between the parties, it is no substitute for ongoing communication between the buyer and builder during the project. This is another reason to select a builder from the start with whom you can communicate effectively and who you are comfortable with.

Express Warranty

• Many builders also include a limited warranty in their contract. Such a warranty can also help prevent disputes after construction is completed.
• The warranty, like the contract, should clearly express the intent of the parties. The limited warranty describes the problems and remedies for which the builder will be responsible after completion of the project and the duration of the warranty. It also defines the mechanism for addressing disputes.
• If a builder warrants workmanship and materials in a warranty, the warranty should also provide some guidelines or standards against which to judge the builder's compliance. One of the best sources of such guidelines is "Residential Construction Performance Guidelines for Professional Builders and Remodelers." (Available from www.BuilderBooks.com)

In this video, NAHB Chief Economist David Crowe explains the positive factors for home buyers in today's marketplace. Although the popular home buyer tax credit program has ended, he explains, there are still plenty of good reasons to consider homeownership -- including mortgage rates that are near historic lows, attractive home prices that appear to have stabilized in many markets, and an excellent selection of new and existing homes on the market.