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B
y nature, Massachusetts home
builders are a fairly tolerant lot.
They have to be. They endure the
burden of complicated state and federal
regulation, and must navigate a labyrinth
of arbitrary rules and codes imposed by
local zoning and building officials. The
process of obtaining approvals is costly,
and often extends for periods measured
in years for even straight forward permits.
This all comes before the trials and tribulations of actually
building the roads, infrastructure, and homes which provide
their livelihoods.
And for long stretches home builders must survive recessionary
real estate markets where carry costs are exorbitant and buyers
are few and demanding.
So when builders as a group voice their frustration about
something, there is usually something to it. This has been
the case with our relationship with utility companies. From
issues involving communication, pricing, experience levels,
scheduling and personnel, by the Fall of 2012 a group of local
home builders had had enough.
After some initial effective efforts by the Home Builders and
Remodelers Association of Cape Cod, a group of members of the
Northeast Builders and Remodelers Association (NEBA) came
together with the purpose of confronting the utilities with their
ongoing frustrations.
The committee has been led by Marc Ginsburg, owner of Marc
P. Ginsburg & Sons of Tewksbury, and Russell Leonard of
Leonard Electric, Inc. of Lowell, with the enthusiastic support
of NEBA President Brian Lussier of Comfort Homes, Inc. But
instead of immediately forming battle lines, the committee took
a deliberative approach to engaging one utility, National Grid.
The committee called upon the expertise and services of the
Home Builders and Remodelers Association of Massachusetts
(HBRAMA). JohnSmolak, chairmanof theHBRAMAGovernment
Affairs Committee, and Benjamin Fierro, Esq., HBRAMA Legal
Counsel, met with committee members and devised a strategy
to engage National Grid in a meaningful dialogue.
Rather than have a meeting with random anecdotes and
disjointed complaints, the committee drafted a member
questionnaire based upon the collective frustrations of the
committee. NEBA worked with Carol Myott, NEBA executive
officer, to circulate the questionnaire to builder members, and
asked respondents to answer questions, on the record, regarding
their experiences with National Grid and NSTAR.
With documented member experiences in hand, the committee
presented written findings to National Grid in advance of a joint
meeting arranged by Ben Fierro on behalf of HBRAMA. The case
studies were categorized into eight specific categories, including:
1. National Grid Pricing Prior to Recording of Approved
Plans.
HBRAMA members explained that they must
undergo an extended permitting process with localities -
even on small developments. They are at a disadvantage
in pricing the costs of utility installation during their due
diligence period in the purchase of parcels, as National
Grid would not set prices on a development until plan
approval by the municipality. This created significant
financial uncertainty and project delays once builders
finally obtain approvals.
2. Commence Utility Design Process Prior to Subdivision
Approval.
HBRAMA members stated that it is important
to start this process long before subdivision/development
approval. This would reduce or eliminate the lag time
between design and construction; and identify off-site
factors much earlier in the process, so that the needs of
the utility could be recognized and incorporated sooner
in the design process.
Home Builders
Build Their Case
and Present It
To National Grid
by Mark H. Leff
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