With the housing market still in the doldrums, it is nice to hear some positive housing market news:  Home remodeling hit its highest level since May 2004.

Home remodeling was up 22% in May from the same month a year ago, according to BuildFax.com. With the current market, that shouldn’t be that surprising. Two aspects of the housing market explain this phenomenon.

First, the thousands of foreclosures that sit abandoned are becoming a sea of fixer-uppers. Buyers who snag up these properties are fixing them up to either live in, rent out or re-sell.

Second, while it may be a good time to buy in most markets, it also means it isn’t the greatest time to sell.  Homeowners who decide to stay put choose to take the money they would have used to move and remodel instead. The top remodels are smaller projects and must-do projects that they have been putting off for the past few years.

This is good news for remedial waterproofing contractors.  Homeowners who have decided to stay in their homes may finally address the water and moisture problems and finish their basements.

Any good news for the economy is good news for us. We hope you all get a piece of the increasing market share.

We have been anticipating, along with our EmeSeal System contractors and the home improvement industry, that the Residential Energy Efficiency Tax Credit on qualified energy-efficient home improvement projects would expire at the end of this year. However, after coming across an article last week from Replacement Contractor Magazine’s website, there is reason for some optimism. The article reports that there has been movement within Congress to extend the tax credits and that such an extension could be a component included in negotiations of the Bush tax cuts.

On Dec. 1, a letter bearing the signatures of window, door, and skylight manufacturing executives from 14 companies went out to every member of Congress, requesting an extension of the tax credits created under the American Recovery and Reinvestment Act of 2009 (ARRA). The letter makes the case that the ARRA credit has allowed manufacturers to save or create jobs during the recession by encouraging consumers to buy qualifying energy-efficient products.

From our vantage point, contractors using our EmeShield Pro Plus Liner for the sealing and insulation of crawl spaces have stayed busy through the last year and a half, while the tax credit has been in effect. The health of our economy unfortunately continues to be a concern, especially with the uncertainty surrounding the Bush tax cuts. Extending such tax credits would be a welcome measure, instilling confidence among contractors and incentive for homeowners.
We will continue to follow this issue closely and keep you updated on any developments via this blog, as well as on Facebook and Twitter.

More Information:
Replacement Contractor Magazine – Fingers Crossed on Tax Credit Extension

A ConsumerReports.org article lists five repairs for the home that must not go ignored. Three out of the five were jobs for a basement waterproofing or a foundation structural repair contractor. Regardless of the state of economy, there is no denying that home maintenance will never cease to exist – without addressing such issues, the basement will be prone to water problems and structural concerns will arise in the foundation. It looks like more proof of job security for the waterproofing contractor. We really just might be recession-proof!

Radon Mitigators and Waterproofers have been butting heads for years. Radon Pros have been closing the interior drainage systems that waterproofers install to fix the radon problem but causing another water problem. In the mean time, waterproofers have been voiding their warranties after radon mitigators disturb their system and recreate radon problems when they reinstall an open system.

If these two industries better understood each other and what they were both trying to accomplish, then t hey could make a pretty good team. We arent’t saying that waterproofers need to become radon mitigators or vice versa, but wouldn’t it be nice to not have to redo each other’s work.

Radon Mitigation/Indoor Air Quality and Waterproofing are closely related fields. If there was a networking relationship between these two groups, they would be a major source of referrals for each other. Think of how many times radon mitigators run into wet basements, or how many waterproofers talk with a homeowner concerned about radon. Why not be known as the waterproofer concerned about radon problems and willing to work with the radon mitigator to ensure a safe and healthy home?

Are you networking with indoor air quality professionals in your area? Why or why not? We want to know if this theory really works in the real world.

Despite a slowing economy and housing downturn, the basement remodeling market actually grew in 2007-2008, according to SBIReports.com. Some say it is because of the slow housing market. If they can’t sell, they remodel.

Basement remodeling is projected to increase over the next five years with more families making their basements entertaining rooms, media rooms, bathrooms, bedrooms and family rooms. That is why it is imperative to pre-finish a basement to guard against moisture and mold problems, radon gas, and water damage.

A good pre-finishing system is like insurance for your basement remodel. Before you even think of hanging sheet rock, stop all active water leaks and seal cracks in the walls, floors and around the cove (where the floor meets the walls). Seal the cracks around the sump pit as well to stop moisture and radon gas from moving into the house.

Treat the basement walls with a deep penetrating concrete sealer to reduce the vapor molecules from moving through the concrete walls.

Consider installing a back-up sump pump system. Please visit the Emecole.com sump pump section for more information.

Also Emecole recommends installing a waterproof insulating blanket to block the rest of any moisture and add insulation. Traditional fiberglass insulation is a food source for mold. The insulating blanket reflects the heat back into the basement making the home more energy efficient.

Now, it is time to finish the basement. It is best to use mold-resistant materials—mold-resistant sheetrock and flooring—to reduce food sources for mold in case moisture enters the basement.

Top Ten Most Frequently Asked Questions…

1. Does the new subsidy apply to our company?

If your company currently provides the option to continue health, dental or vision coverage to individuals who experience a qualifying event, you need to be aware of the new subsidy and your potential obligations.

2. How much will the subsidy cost our business?

Basically, the COBRA subsidy requires employers to provide the government with a short-term loan through which the government will be covering 65% of the cost of coverage for eligible individuals. Employers will be initially responsible to pay 65% of the cost of coverage for eligible individuals. Once an employee remits their portion of the cost of coverage (35%), the employer is permitted to take a direct credit against their current payroll tax obligations. If the employer’s credit exceeds the amount of their tax liabilities in a quarter, they will be entitled to a refund to make up the difference.

Employers need to be aware that the legislation requires employers to submit documentation to support and justify the tax credit utilized. The Treasury has been instructed to produce additional regulations specifying the forms and documentation necessary to substantiate the credit/refund.

Also, employers are to provide those individuals who remit the full cost of continuation coverage for periods occurring during the first 60 days after enactment of the legislation with either reimbursement for the amount of premiums paid in excess or a corresponding credit reducing one or more subsequent premium payments that the individual will be required to pay to maintain coverage.

3. When does the subsidy begin?

The subsidy begins to apply for periods of coverage commencing after the date of enactment of the legislation. For most plans, this means March 1, 2009.

4. Who is eligible for the subsidy?

An individual who was involuntary terminated between September 1, 2008 and December 31, 2009, and who, because of the involuntary termination, was eligible for and elected to continue benefits under COBRA will generally be eligible to receive the subsidy. However, individuals, who are above a certain income levels, will not be eligible for the subsidy. In the event such an individual receives the subsidy and is not eligible, he or she will be subject to a corresponding increase on their tax liability.

Individuals who were involuntarily terminated as far back as September 1, 2008 who are not currently enrolled in continuation coverage will need to be provided with an additional 60 days to change their mind and elect coverage. In the event such an individual or their dependent(s) elect coverage, coverage will be effective as of March 1, 2009. Further, the individual should not be subject to any preexisting condition exclusions for the time period between September 1, 2008 and March 1, 2009

5. What type of notice(s) is required?

Employers are required to provide notice to those individuals who are eligible for the subsidy. In addition, Employers are also required to provide alternate notices, i.e., notice regarding the basis of ineligibility for the subsidy. The Department of Labor has been instructed to issue model notices and additional guidance within 30 days of the enactment of the legislation.

6. How much time do we have to provide the notices?

Employers must distribute required notices to affected individuals within 60 days of the enactment of the legislation. Again, the Department of Labor has been instructed to issue model notices and additional guidance within 30 days of the enactment of the legislation.

Those individuals and dependents given a new opportunity to change their mind and elect continuation coverage will have 60 days from the date notice is provided to elect coverage.

7. Do we need to amend our existing notices?

The legislation clarifies that employers have the option of amending existing notices or preparing addendums to supplement current notices.

8. How long can someone be eligible for and receive the subsidy?

Where an employee is eligible to continue coverage due to an involuntary termination, they could be eligible for the subsidy for up to nine months. However, the COBRA subsidy legislation does not extend the maximum amount of time an individual is otherwise eligible to continue coverage.

Additionally, an individual is no longer eligible for the subsidy at the point he or she becomes eligible for coverage under any other group health plan or Medicare. In the event an individual becomes eligible for such coverage, they are required to notify their previous employer/plan administrator of such ineligibility. Where an employee does not provide sufficient notice, he or she could be liable for up to 110% of the amount of premium assistance received.

9. Who is enforcing and overseeing compliance with the subsidy?

The Secretary of Labor, the Secretary of Health and Human Services, and the Secretary of the Treasury are charged with enforcement and oversight. The Department of Labor has been instructed to implement an expedited claims procedure to review claims brought by individuals alleging they were improperly denied the subsidy. An individual will not be required to exhaust the claims procedures set forth under the plan in order to utilize the expedited review process at the Department of Labor. Additionally, individuals may also be permitted to simultaneously bring an action in federal court. A reviewing court would be required to give deference to any determination made by the Department of Labor.

10. What do we do now to prepare for complying with the new subsidy?

Initially, employers should begin by auditing records to determine and account for those individuals who have experienced a COBRA qualifying event as far back as September 1, 2008. The type of qualifying event experienced should be noted as not all COBRA eligible individuals will be able to receive the benefit of the subsidy. For example, those eligible for COBRA due to divorce or ceasing to meet dependent status under the plan would not be eligible for the subsidy. Additionally, those who voluntarily resigned would also not be eligible to receive the subsidy.

Employers should also prepare to establish procedures to ensure compliance with future notice obligations and payroll tax reporting.

While additional guidance is still needed from the government in order to ensure proper compliance with the legislation, the time frame employers will have to react is extremely limited. Employers need to take every effort to be fully prepared in order to be able to respond to the forthcoming additional guidance and model notices in an incredibly short time frame.

The following is an informative article, pertaining to ongoing talks of the federal government stimulus package that has been pushed hard by President Barack Obama. The following piece was written by David O’Leary, a Chicago area lawyer.

The U.S. Treasury Department Announces New Restrictions on Executive Compensation for Financial Institutions Receiving Government Assistance

On February 4, 2009, the Treasury Department issued strict new regulations on executive pay for banks and other financial institutions receiving assistance under the federal government’s “bailout” programs. The new regulations impose a $500,000 salary cap on banks receiving “exceptional assistance,” restrict severance payments to terminated executives and impose disclosure requirements on so called “luxury spending.”

The Obama administration has indicated it recognizes that distressed financial institutions need to attract and retain top talent if they are to regain profitability and repay the taxpayers’ investments. Nonetheless, the administration has significantly restricted the amount of compensation that can be paid to such employees and imposed strict monitoring and accountability requirements on these institutions. It is clear that this is only the beginning of a long-term effort by the administration to examine and reform executive compensation policies.

The new regulations distinguish between banks and financial institutions receiving governmental assistance under generally available programs, and banks and financial institutions receiving “exceptional assistance.” For those institutions receiving exceptional assistance, such as AIG, Bank of America and Citigroup, the restrictions are draconian. While the restrictions are less severe for those institutions participating in generally available assistance programs, they will still have a significant effect on the compensation strategies of these institutions. The new regulations generally do not apply retroactively, but will apply to banks and other financial institutions receiving future assistance, including those who have already received assistance.

The new regulations require:

• Annual Certification. The chief executive officers of all banks receiving any form of government assistance must provide certification that the banks have strictly complied with statutory, Treasury and contractual executive compensation restrictions. Compliance with these restrictions must be re-certified annually. In addition, compensation committees of these banks must provide an explanation of how their senior executive compensation arrangements do not encourage excess or unnecessary risk taking.

• $500,000 Compensation Cap. The compensation of senior executives of banks receiving exceptional assistance is limited to no more than $500,000. Additional amounts can be paid by using restricted stock or other similar long-term incentive arrangements if the executive is prohibited from receiving benefits (a) prior to the time the government has been repaid, with interests, or (b) after a specified period, as negotiated between the bank and Treasury. Banks receiving assistance through generally available programs are permitted to waive this compensation cap if they provide full public disclosure and the waiver is approved by vote of the bank’s shareholders.

• “Say or Pay” Shareholder Resolution. For banks receiving exceptional assistance, the senior executive compensation structure and the rationale for how compensation is tied to sound risk management must be fully disclosed and submitted to a non-binding shareholder resolution.

• Bonus Clawbacks. All banks receiving government assistance must have a program in place to claw back bonuses and incentive compensation from any of the top 25 senior executives if they are found to have knowingly engaged in providing inaccurate information relating to financial statements or performance metrics used to calculate their own incentive pay.

• Ban on Golden Parachutes. For banks receiving exceptional assistance, the top 10 executives are prohibited from receiving any golden parachute payments upon a severance from employment. The next 25 executives will be prohibited from receiving any golden parachute payment greater than one year’s compensation, upon a severance from employment. For banks receiving assistance through generally available programs, only the top five executives will be affected and they will be prohibited from receiving any golden parachute payment greater than one year’s compensation.

• Board’s Approval of Luxury Expenditures. The boards of directors of banks receiving any governmental assistance must adopt a company-wide policy on any expenditures related to aviation services, office and facility renovations, entertainment and holiday parties, and conferences and events. This policy is not intended to eliminate reasonable expenditures for sales conferences, staff development, reasonable performance incentives and other measures tied to a bank’s normal business operations. The bank’s chief executive officers must certify expenditures that could be viewed as excessive or luxury items. The text of the bank’s expenditure policy should be posted on the bank’s website.

The Importance of Compliance With the New Rules

The new regulations are only the beginning of the administration’s attempt to regulate executive compensation. If you are a bank or other financial institution that is currently receiving or is considering any type of government assistance, it is imperative to review your compensation policies and determine the steps that must be taken to comply with the new regulations. If you are not receiving, and do not expect to receive, any government assistance, it is still important to understand the new rules as some of them may apply or affect your company or institution.

Business for concrete repair and basement waterproofing contractors may not be as busy as we’d all like it to be, but now more than ever, good marketing and efficiency is crucial. The overall goal, always, is to stand out from your competitors. The following article provides a good read on that subject, courtesy of ConcreteConstruction.net:

It would be nice if there was a magic marketing bullet you could use to ensure that your company would have work when the construction market is declining. But when fewer dollars are being spent in an industry, competition gets much more intense. Here is one suggestion though: Work on the quality and craftsmanship of your installations.

An acquaintance recently decided to add a concrete driveway to the new home he is building for his family. He decided against asphalt and he let his fingers do the walking in the Yellow Pages. One concrete contractor impressed him with his low price and he said he would do the job right away. So he gave him the go-ahead. The contractor noticed right away that there was minimal pitch available for the driveway and made the homeowner aware of it and said he would work it out. The forms went in on an afternoon and the concrete came the following morning.

Click here to read the entire article.