Northern Virginia Building Industry Association 2021 Industry Impact Report

What’s Inside 05 Welcome from 2022 President Jason Crismon 06 NVBIA Welcomes Debbie Rosenstein as Chief Executive Officer 08 NVBIA’s Government Affairs Serves as Watchdog and Advocate 10 NVBIA Events 17 State of the Association 18 Market Update - Northern Virginia 20 HomeAid Northern Virginia 22 NVBIA Chapter Updates 29 Council & Committee Highlights 34 Welcome, 2021 New Members! 35 Thank You to Our 2021 Business Partners! 36 Become a Member of NVBIA 37 Building Industry 101 38 Save the Date 2022 08 18 29 10 4 | The Nor thern Virginia Building Industry Association 2021 Industry Impact Repor t PUBLISHED FOR Northern Virginia Building Industry Association 3684 Centerview Drive, Suite #110-B Chantilly, VA 20151 703.817.0154 PUBLISHED BY E&M Consulting, Inc. p. 800.572.0011 For information regarding advertising, please contact us at or 800.572.0011 x8005. PUBLISHER’S NOTICE: No part of this publication may be copied, reproduced, or transmitted in any other form or by any other means, electronic or mechanical, to any information storage or retrieval system without the expressed written consent of the Northern Virginia Building Industry Association (NVBIA). Any use other than for what it was intended, or reproduction of materials in the publication, must be with written consent of NVBIA. While every effort has been made to avoid mistakes in this publication, the publishers, NVBIA, and their agents assume no liability whatsoever to anyone for any error or omission or for any damages of any kind which may arise from the publication or use of this magazine. Please contact the NVBIA office at 703.817.0154 if your contact info is wrong, so that the change can be made.

From the Desk of … I THINK THAT WE CAN ALL AGREE that 2021 was a year marked by uncertainty: COVID still controlled a portion of our lives, while we asked whether vaccinations made us feel safe enough to gather. We questioned whether events were indoors or outdoors … some of us signed COVID waivers … or we even contemplated mandates. There were more questions than answers. But in spite of it all, NVBIA and its members have adjusted to what could be considered the new normal. Like members of the association, NVBIA quickly pivoted to adapt to 2021 circumstances and, knowing how important networking is to the value of members’ membership dollars, NVBIA held nearly 100 percent of events that were previously scheduled over a full year to a May to December 2021 schedule. 2022 will hold surprises, with another COVID variant making the rounds at press time, but with two years behind us, I’m cautiously optimistic that 2022 will bring us closer to what we might consider a more normal schedule. While some of the new processes, such as working from home and electronic meetings, have oftentimes made our work days more streamlined, there is nothing like seeing and speaking with colleagues and friends in person, whether at work in the office, the field, or at an industryrelated event, and it’s something I really hope we can count on in this new year. So, it is with a positive outlook that I will look at our plans for 2022, and we need your support—from membership to events to advocacy—whether it be by sponsorships, attendance, or weighing in on housing issues impacting our industry. Best of all, our new Chief Executive Officer Debbie Rosenstein is here to help you every step of the way. A long-time member and past president of the association, Debbie’s passion for the industry and NVBIA is boundless. She has worn both the Associate member and Builder member hats over the past 30+ years, giving her a unique perspective into the hearts and minds of all of our members. And, having worked as vice president of events and business development at the association for the past two years, Debbie understands processes and what members want. She is also the first woman to lead NVBIA in our long history; it’s long overdue, and I expect we will see more women in leadership in the future. Personally, I have big shoes to fill as NVBIA 2021 President Soledad Portilla leaves office in December. Soledad welcomed every Chapter, Council, and Committee by meeting with them during the initial months of 2021. I intend to do the same. Many of NVBIA’s meetings were held online via Zoom in 2021; in 2022, at the appropriate time, we will endeavor to have hybrid meetings inviting people into our offices while allowing those who cannot make it to the meeting be a virtual participant. I will, of course, strive to continue the good works that both Gene Frogale (2020 NVBIA President) and Soledad Portilla have begun with a workforce development program. It is so important in shaping how builders will grow and thrive in future years, and there is enormous need for a trained labor force in the coming years—the talk of a trained labor shortage today is not to be ignored! Within a trained workforce, both diversity and inclusion will be important components to our long-term success, as well. I look forward to meeting you, advocating for our industry, and creating an association second to none in Virginia. I will always be available to speak to your issues, and I thank you in advance for your support during 2022. JASON CRISMON NVBIA 2022 President JASON CRISMON NVBIA 2022 PRESIDENT Advocacy. Networking. Education. Philanthropy. | 5

NVBIA Welcomes DEBORAH L. ROSENSTEIN NVBIA CHIEF EXECUTIVE OFFICER DEBBIE ROSENSTEIN as Chief Executive Officer DEBORAH L. ROSENSTEIN was named NVBIA’s new Chief Executive Officer in October 2021, after serving as NVBIA’s Vice President of Events & Business Development for the past two years. She has been an active member of NVBIA for many years, including serving as its 2007–2008 president and being named NVBIA Builder of the Year in 2011 and Associate of the Year in 1992. Being able to give back to the industry through her new role is the realization of a dream. Debbie is passionate about both the homebuilding industry as well as NVBIA and its members. Passion provides the drive behind Debbie’s desire to see NVBIA grow and prosper. Being a “people person” has allowed her to connect with many members of the association. To Debbie, members are not only members, but friends. Debbie’s two years dealing operationally with membership and events has given her the insight to help NVBIA overcome challenges and create new opportunities for its members. “I am humbled by the fact that the Board had the confidence in my skills to appoint me as CEO,” Debbie said. Debbie’s experience in the real estate industry includes research, product analysis, and transactional analysis, as well as operational sales and marketing management. In the late 1970s, Debbie helped create the first new home data base, Housing Data Reports, as well as its consulting arm, Housing Strategies, in the Washington, D.C. area. She went on to open her own new homes consulting firm, Rosenstein Research Associates, Inc., that was operational for nearly 25 years prior to joining Metrostudy (now Zonda) as a senior consultant in its MidAtlantic region. On the operational side of the new homes business, Debbie served as vice president of sales and marketing for the Christopher Companies. Debbie received her Bachelor of Arts in history and government from the University of Maryland and is a MIRM (Master in Residential Marketing), certified through the National Association of Home Builders (NAHB). 6 | The Nor thern Virginia Building Industry Association 2021 Industry Impact Repor t

NVBIA HAS BEEN HARD AT WORK REPRESENTING THE INDUSTRY BY ADVOCATING PRO-HOUSING POLICIES AT THE STATE AND LOCAL LEVELS. Serves as Watchdog and Advocate NVBIA’S GOVERNMENT AFFAIRS PUSHING BACK ON PROPOSED LOUDOUN PARKING REGULATIONS In October, NVBIA weighed in on new proposed parking regulations in Loudoun County, expressing concerns that elements of the proposed regulations will have negative impacts on the goals in the General Plan when it comes to affordability and environmental conservation. SUPPORTING TRANSIT-ORIENTED DEVELOPMENT In June, NVBIA showed its suppor t for a comprehensive plan amendment to suppor t mixed-use development near the West Falls Church Metro.While NVBIA does not take positions on individual zoning applications, they did suppor t the comprehensive plan amendment because they believe increased density at transit stations is an impor tant tool that spurs economic development for the region. The amendment passed with unanimous suppor t from the Fairfax County Board of Supervisors. 8 | The Nor thern Virginia Building Industry Association 2021 Industry Impact Repor t

WETLAND AND STREAM MITIGATION CREDITS; SERVICE AREA FLEXIBILITY Over the last several years, the volatility in the wetland and stream mitigation credit market has deterred, delayed, or increased the cost of residential, commercial, and infrastructure projects in various regions of the Commonwealth. Our members have struggled to deliver lots to the market because of the fluctuation in credit prices and the credit supply shor tage. To address this issue, the Home Builders Association of Virginia (HBAV) and the Virginia Association for Commercial Real Estate (VACRE) worked with over 25 stakeholders from the environmental and conser vation community, local governments, and state and federal regulator y agencies to introduce HB 1983, patroned by Delegate David Bulova (D – Fairfax). We are happy to repor t that this legislation passed the General Assembly, was signed by Governor Northam, and became effective July 1, 2021. ESTABLISHING A VIRGINIA HOUSING OPPORTUNITY TAX CREDIT During the 2020 Session, HBAV and the Virginia Housing Alliance worked with Delegate Jeff Bourne (D – Richmond) to pass legislation that established a stakeholder advisory group to evaluate how Virginia could structure and implement a housing tax credit to attract private equity investment to affordable housing developments, similar to the Federal Low-Income Housing Tax Credit (LIHTC). The LIHTC program gives investors a dollarfor-dollar reduction in their federal tax liability in exchange for providing financing to develop affordable rental housing. Since 1987, the program has attracted enough private equity to finance over 100,000 affordable units in Virginia; in the last five years alone, Virginia has allocated approximately $200 million in credits that have leveraged nearly $2.9 billion in private equity. Despite the effectiveness of the program, the supply of affordable housing continues to lag surging demand, and it has become increasingly more difficult to finance affordable housing developments through traditional mechanisms. Using the recommendations of the workgroup established in 2020, HBAV and the Virginia Housing Alliance worked with Delegate Jeff Bourne and Senator Mamie Locke to introduce HB 2050 and SB 1197 to establish and “fund” the Virginia Housing Oppor tunity Tax Credit. Although HB 2050 was defeated in a House Finance Subcommittee, SB 1197 ultimately was passed by the General Assembly, signed by the Governor, and became effective July 1, 2021. The bill directs Virginia Housing (formerly the Virginia Housing Development Authority) to promulgate regulations and guidelines necessary to implement the program. The HBAV will be involved in that process throughout the year. NOVA BUILD PAC NVBIA’s political action committee (PAC) is a large par t of what makes so much of what we do possible: It ensures that suppor t goes to the right candidates and helps those candidates win office seats to enact better housing policies. It helps the Association strengthen its voice, and it provides more oppor tunities for us to sit down with key leaders at the state and local level. In the November 2021 elections, all of the candidates who the NoVA Build PAC suppor ted won their elections, which will enable us to maintain a strong relationship with our elected officials. The PAC once again held its ver y popular and successful clay shooting fundraiser in May after a hiatus in 2020 due to the COVID pandemic. The event attracted a sold-out capacity crowd and netted near ly $20,000. This event enables NVBIA to spread awareness of NoVA Build PAC and help NVBIA members better understand the impor tance of PAC and its three overarching goals: to protect and preser ve the availability of housing affordability for all people; to practice fiscal responsibility with the public funds entrusted to them; and to protect, preser ve, and fur ther the free enterprise system. If NoVA Build PAC is going to continue to overcome the challenges that will inevitably come up year after year, it is impor tant that all who can suppor t the PAC do so by donating at or by sending a check to NoVA Build PAC at 3684 Center view Drive, Suite #110-B, Chantilly, VA 20151. For more information about NoVA Build PAC, contact Debbie Rosenstein at In the November 2021 elections, all of the candidates who the NoVA Build PAC supported won their elections, which will enable us to maintain a strong relationship with our elected officials. Advocacy. Networking. Education. Philanthropy. | 9

NOVA BUILD PAC WELCOMES 80+ ATTENDEES TO CLAY SHOOT IN MAY, the NoVa Build PAC held its 2nd Annual Clay Shooting Fundraiser at the Bull Run Shooting Center in Centreville,VA. In addition to networking oppor tunities after too many months spent meeting vir tually, the event was held in order to replenish NoVa Build PAC’s coffers and enable the PAC to suppor t state and local pro-housing elected officials—an especially impor tant goal this year, as all 100 House of Delegate seats were up for election! Nearly 80 shooters attended, with qualified instructors on hand at each shooting station to keep everything safe and friendly. Lunch was served by Brickmakers Catering after the shooting experience and gift cards were awarded in several categories, including Individual High Scorer and Runner Up,Team High Scorer, Most Improved, High Scorer/Woman Shooter, and High First-Time Shooter. Everyone had fun at the networking, skills-building, and fundraising event, and NVBIA will continue the tradition in 2022. CRAWFISH BOIL KICKS OFF FIRST IN-PERSON EVENT OF 2021 ON JUNE 10, 2021, NVBIA members and guests gathered for the Annual Crawfish Boil, welcoming back Truett Young, Stanley Mar tin Homes, Louisiana native and Master Crawfish Chef.The rain held off long enough for a large crowd to enjoy all-you-can-eat crawfish, hamburgers, and hot dogs at Total Development Solutions’ outdoor space, while enjoying the R&B rhythm of Moonshine Society. Thank you to the elected officials who came out from Loudoun, Fairfax, and PrinceWilliam to network and enjoy the fun— we enjoyed hosting you! NVBIA Events Left to right, Matt Kroll, chair of Build PAC, Soledad Portilla, president of NVBIA, and Craig Havenner, past president of NVBIA and Build PAC past chair meet up at NVBIA’s 2nd Annual Clay Shooting Fundraiser in May. 10 | The Nor thern Virginia Building Industry Association 2021 Industry Impact Repor t

SCRAMBLE GOLF TOURNAMENT A SELL-OUT IT WAS A STEAMY JULY DAY, but a soldout complement of golfers lined up their car ts to par ticipate in NVBIA’s Annual Golf Tournament at the beautiful River Creek Country Club, with a shotgun star t ensuring that foursomes filled the golf course all day! A breakfast bar, on-course games, a putting contest, and longest drives and closest to the pin competitions all added to the fun, before winding down with an awards dinner. Congratulations to first place finisher ECS Mid-Atlantic, second place McLean Mor tgage Corporation, and third place Vulcan Materials. Many thanks to Dixon Golf for providing the oncourse games and awards! Team Toll Brothers enjoys NVBIA’s 2021 Golf Tournament. George Mason Mortgage’s foursome on the links! A sold out complement of golfers turn out for NVBIA’s 2021 Scramble Golf Tournament at River Creek Country Club. Advocacy. Networking. Education. Philanthropy. | 11

MEET THE BUILDER IS BACK! NVBIA’S ALWAYS-POPULAR Annual Meet the Builder event was moved from its regular time-slot in March in 2021, taking place instead in August at the Tysons Corner Marriott.With more than 30 builders and a wide range of trade par tners, this “speed dating” event provided associate members with the oppor tunity to interact with a large group of builders—both custom and production—and introduce and talk about their homebuilding products. Beginning with an exclusive cocktail reception for the builders and sponsors, the par ty quickly moved into “speed dating” mode with two bars and a wide array of delicious foods to choose from at the buffet bar. In 2022, NVBIA will be back at its usual mid-March time slot to host Meet the Builder while enjoying the first day of March Madness. As always, many thanks to our sponsors for making this event possible! NVBIA Events Members turned out in force for NVBIA’s annual Crab Feast at Broad Run Farm. SAYING GOODBYE TO SUMMER WITH NVBIA’S ANNUAL CRAB FEAST NVBIA CAPPED OFF a fabulous summer of in-person events with our perennial favorite, the Crab Feast, at the Farm Brewery at Broad Run Farm.With an afternoon full of sunshine and fun, members and guests enjoyed crabs from the Crab Depot (along with hamburgers, hot dogs, and sides for those who don’t love crabs), congenial company, and the bluesy sounds of Anthony “Swampdog” Clark and his band under the big tent. Members also brought diapers and baby wipes as par t of a donation drive benefitting HomeAid Nor thern Virginia’s “Builders for Babies” campaign. The goal is to deliver 50,000 diapers and wipes to shelters serving women and babies experiencing homelessness throughout the region. (And, thanks to very dedicated HomeAid suppor ters, the goals were exceeded!) 12 | The Nor thern Virginia Building Industry Association 2021 Industry Impact Repor t

NVBIA INTRODUCES A CHILI COOK-OFF! ON SEPTEMBER 14, NVBIA kicked off our first Chili CookOff, held at Hidden Creek Golf Club in Reston, where the Little Bamboo Food Truck also offered up taco specials. In a beautiful setting with an early touch of crisp fall weather, our attendees tasted and judged a tough field of eight celebrity competitors, with Craig Havenner,The Christopher Companies, walking away with first place! Close behind was Jason Crismon,Toll Brothers, in second place, Eric Bogumil, christopher consultants, in third place, and Jessica Francis, Drees Homes, snagging four th place. OYSTER ROAST ATTRACTS ELECTED OFFICIALS, LOCAL GOVERNMENT STAFF, AND NVBIA MEMBERS NVBIA WAS BACK at Belmont Bay Harbor on September 23, with beautiful views of the water and marina for our Annual Oyster Roast.The afternoon could not have been lovelier, and our official oyster shucker was busily shucking for the large crowd that included a large contingent of elected officials, including PrinceWilliam County Board of Supervisors Chair AnnWheeler and Supervisors Victor Angry, Andrea Bailey, Kenny Boddye, and Margaret Franklin. Silver Spoon Catering furnished a large array of delectable goodies for non-oyster lovers. Craig Havenner, The Christopher Companies, chili cook-off winner! Joanna Kirby, Universal Engineering Sciences and a member of NVBIA’s Future Leaders, chats with Chef Mark Trostle of Willowsford. Belmont Bay once again proved an idyllic spot for NVBIA’s annual oyster roast, where networking with both colleagues and elected officials, as well as Prince William staff, continued until early evening. Prince William County Supervisor Victor Angry (left) chats with members. Silver Spoon Catering provides delicious non-oyster food items for ‘turf ’ loving members. Brian Davidson Van Metre Homes Craig Havenner The Christopher Companies Skip Groupe and Jana Gilbert The Engineering Group Charlie Schultz Wells Fargo Mark Trostle Willowsford Jason Crismon Toll Brothers Eric Bogumil christopher consultants Jessica Francis Drees Homes MANY THANKS TO OUR CHILI COOK-OFF CHEFS! Advocacy. Networking. Education. Philanthropy. | 13

PRESIDENT’S BALL 2021: A BREATH OF FRESH AIR WHAT? THE PRESIDENT’S BALL in October? After a year fraught with COVID concerns, NVBIA 2021 President Soledad Portilla chose October 1 to enjoy her ball.With a “Breath of Fresh Air” theme, the event was held outside on a beautiful early fall night under a festively decorated tent.With both elected officials and a good contingent of members in attendance, the night provided a good environment for networking and enjoying a program with emcee Debbie Rosenstein. Past President Gene Frogale gave his farewell speech, which Soledad reiterated through her NVBIA platform of diversity and inclusion. She thanked the 2021 Board and staff for suppor ting her throughout the year, and we applauded Soledad’s year as president. An informal atmosphere, all the way from dress through to the evening program, set the stage for a night of casual dining and networking. Gene also announced the 2020 Presidential AwardWinners: Builder of theYear Drees Homes Doug Fahl Associate of theYear Doug Smith, Soil Consultants Engineering Custom Builder of theYear Ali Khazai, Capital City Builders Women in the Building Industry Award Melissa Farrar, Washington Gas Bill Berry President’s Award: Howard Katz, Toll Brothers Emil Keene Award* Jerry Berman * This coveted honor is not awarded every year. It signifies a person’s lifetime of service to the association. To top the evening off, NVBIA selected the winner of our 50/50 Scholarship raffle to benefit George Mason University and the Arlington Scholarship Fund. NVBIA Events COVID protocols required some changes big and small to NVBIA’s biggest events, but it didn’t stop the association from hosting a glittering President’s Ball under the big tent in October! A large crowd enjoyed each other’s company, an open bar, and the joys of face-to-face networking at NVBIA’s outdoor President’s Ball in October. 14 | The Nor thern Virginia Building Industry Association 2021 Industry Impact Repor t

GREAT AMERICAN LIVING AWARDS (GALA) HONORS BEST & BRIGHTEST ON THE EVENING OF OCTOBER 14, NVBIA’s new homes industry gathered at the Reston Hyatt Regency for a night of fun and celebration for the best and brightest of the sales, marketing, and design professionals. Always an anticipated event, our emcees Rhonda Atkins and Steve Buckhantz presided over a packed house enjoying a sumptuous dinner and lively awards program. Excited to be in-person after a year that didn’t allow for large gatherings, this year’s GALA was the Sales, Marketing, and Design event of the year! The coveted Hall of Fame award (in the builder/developer category this year) went to Steve Alloy, past president of NVBIA and President and CEO of Stanley Mar tin Homes. Fresh off Stanley Mar tin’s Builder of theYear Award from Builder Magazine, Steve accepted the Hall of Fame Award graciously and shared words of thanks to NVBIA, the Stanley Mar tin Homes organization, and those who have helped him over the years.The Hall of Fame Award is given to that individual who has demonstrated a lifetime of iconic work in the builder/ developer field and who has suppor ted NVBIA over the years, as well as the GALA. The awards program was fun and enter taining and provided recognition for those not often thanked for their work throughout the year.The top awards in 2021 were: Community of theYear Robinson Landing/EYA LLC; JBG Smith Properties; Mitsui Fudosan America; KTGY Architecture +Planning; Shalom Baranes Associates.This is a beautiful waterfront community in Alexandria on the water. Community of theYear Award of Merit Bayside Fenwick Island/ Carl M. Freeman Companies Custom Home of theYear 437 Cedar Ave./Clearview Homes Home of theYear The Logan at Quarry Springs/ Wormald Homes Salesperson of theYear StephanieWhite, Dan Ryan Builders 1 4 7 5 6 2 3 Who’sWho: 1. Emcee Rhonda Atkins (far left) recognizes Tri Pointe for excellence, with Julie Dillion, former chair of the GALA, and members of her team at Tri Point accepting on behalf of the company. 2. Emcee Rhonda Atkins (right) presents the Salesperson of the Year Award to Stephanie White, Dan Ryan Builders. 3. NVBIA CEO Debbie Rosenstein presents the prestigious Hall of Fame Award to Steve Alloy, president of Stanley Martin Homes. 4. NVBIA CEO Debbie Rosenstein and GALA Chair Melissa Wallace present HomeAid Northern Virginia CEO and Executive Director Kristyn Burr a check for HomeAid. 5. The team from Interior Concepts have some fun in the photo booth. 6. Emcee Steve Buckhantz, left, awards marketing honors to Christine Malloy and Jay Dixon of Ads Intelligence. 7. Jane Lyons and Mark Sucher of Lyons Sucher Marketing, long-time committee members and 2020 Hall of Fame winners, were honored on stage in 2021 since there was no in-person event in 2020. Advocacy. Networking. Education. Philanthropy. | 15

TOP GOLF & LEARN WITH NVBIA IN LATE OCTOBER, NVBIA hosted Top Golf & Learn at the Ashburn location, with Associate members sponsoring golf bays, where they could talk about and market their services as NVBIA builder members visited each of the golf bays throughout the night. It was another fun night for our membership, with a hear ty buffet and a chance to win prizes awarded to those who visited all the golf bays. This year, Apple watches, speakers, and Top Golf gifts were awarded. Thank you to all who came out! NVBIA Events George Mason Mortgage represents at Top Golf & Learn! 16 | The Nor thern Virginia Building Industry Association 2021 Industry Impact Repor t

703.817.0154 65 NEW MEMBERS IN 2021 $25,000 CONTRIBUTED TO HOMEAID NORTHERN VIRGINIA $50,511 RAISED FOR NOVA BUILD PAC 91 NUMBER OF BOARD MEMBERS Includes Life Directors and Senior Life Directors 85 YEARS IN BUSINESS 548 ALL MEMBER COMPANIES 151 BUILDER COMPANIES * Total does not add up to 548 for builders and associates because there are subsidiary companies and firms with reciprocal memberships. 368* ASSOCIATE/ TRADE COMPANIES 35 EVENTS HELD IN 2021 STATE OF THE ASSOCIATION Advocacy. Networking. Education. Philanthropy. | 17

• The nation’s total GDP in the third quar ter was over $23 trillion, which is above where we were prior to the pandemic. Economic output is fully recovered. • Current employment of just over 148 million jobs is still over 4 million jobs below pre-pandemic levels. • The total workforce is down by 3 million people (-1.8 percent) as some people have accelerated their retirement plans, while others have the flexibility to choose not to work. • Job openings number 10 million, which exceeds the 7.4 million people that are unemployed.This is creating upward pressure on wages to attract and keep employees. • The inflation rate of 5 percent is a concern. It is being driven by higher wages, supply chain constraints, government stimulus, and increased demand for goods and housing. • The savings rate is very high and net wor th is at record levels due to a strong stock market and surging home values. • The desire to own a home is very strong, but consumers are skeptical that home prices represent a good value while others have simply been priced out of the market. Locally, the D.C. Metro and Nor thern Virginia employment figures are below average.We are following the typical pattern where the region does not suffer as much during the recession, but we recover more slowly after the economy bottoms.This contributes to a housing market that, while strong, lags that of many metropolitan areas around the country. Here are the resale market headlines for Nor thern Virginia: • Year-to-date October resale volume is up 14 percent from 2020, though sales in the last two months have been lower than at the same time last year. • Active listings are very low with 4,469 units on the market (October), which is down 7 percent from last year. Listings represent less than one month of supply, which is lower than last year and extremely low historically. • Over the last three months, the median resale price in Nor thern Virginia is $514,500, which is up 6 percent from the same time last year. MARKET UPDATE By: Ben Sage, Zonda Northern Virginia It has been 21 months since COVID-19 began to disrupt and upend lives worldwide.We may be past the worst of it in the U.S.—at press time, the Omicron variant is believed to have peaked. Regardless, there remain many unknowns going forward for the economy and for housing. Here are some of the national highlights: 18 | The Nor thern Virginia Building Industry Association 2021 Industry Impact Repor t

• Home prices are up, but the year-over-year increase is declining from a peak of +17 percent in June 2021.The fevered demand for homes has subsided in the face of higher prices. • Home prices are rising faster in the suburbs compared to closer-in locations, which are up modestly. Along with the resale market, the new-home market in Nor thern Virginia accelerated in the last 21 months, a surprising result of pandemic-related lockdowns.We entered into the COVID era under-supplied on the resale side, and this was exacerbated post COVID as demand increased at the same time sellers took their homes off the market.This resulted in a surge in demand at new-home sales offices. Demand quickly outstripped the industry’s ability to deliver product, as there is a shor tage of lots and not enough incoming supply to replace communities that were selling out more quickly than anticipated. Supply chain bottlenecks (windows, doors, garage doors, appliances, etc.) fur ther limited builders’ ability to star t and complete new homes, so aggressive price increases ensued in an effor t to control demand.The below summarizes the new-home market in Nor thern Virginia so far in 2021. • Year-to-date star ts ending September number 7,254 units, up 13 percent from last year. • Year-to-date new-home sales of 4,501 (excludes I-81 corridor) are down 20 percent from last year as many of this year’s star ts, which are up, date back to contracts written in 2020. • New-home sales on a per-project basis are largely unchanged from last year at 2.7 per month, which was propped up this year by a smaller community count. • Similar to the community count, lot supply is dwindling as the 11,260 vacant developed lots in Nor thern Virginia are down from almost 20,000 in 2015. • Our tracking of future lots, including those that are under development, indicate continued strain on new-home supply levels. In the last few months, the new-home market in Nor thern Virginia has “normalized,” and seasonal demand patterns have returned. Builders are now being much more cautious about raising prices, and fewer locations are capping sales. Supply-chain issues are expected to persist for most of next year, and inflation may threaten these historically low mor tgage rates that the industry has enjoyed since mid-2020. If we can avoid/ overcome these hurdles and keep home prices steady, home shoppers are likely to return for a solid spring selling season. Overall, new-home demand in 2022 will be good, but supply constraints will make it difficult to match 2021 output. Figure 4: NoVA Annual Starts and Closings Figure 3: NoVA Annualized Base Price Increase Each Quarter Figure 2: Fannie Mae Housing Survey – “Good Time to Buy a Home” Figure 1: NoVA Production Builder Community Count Advocacy. Networking. Education. Philanthropy. | 19

• Matthew Hansen, director of Site Development and Inspections Division (SDID) • Jay Riat, Fairfax County’s Building Official and LDS Building division director. Of par ticular interest was Karla Bruce, chief equity officer with Fairfax County, who presented the One Fairfax initiative—a joint racial and social equity policy of the Fairfax County Board of Supervisors and School Board—to NVBIA and NAIOP. The initiative commits the county and schools to intentionally consider equity when making policies or delivering programs and services and is a declaration that all residents deserve an equitable oppor tunity to succeed— regardless of their race, color, sex, nationality, sexual orientation, religion, disability, income, or where they live. During a vir tual meeting, Fairfax County Supervisor Dalia Palchik provided a very positive and high-energy conversation, encouraging the women on the call to always speak up and be asser tive. She also briefly shared that she grew up in public housing and reminded us of how impor tant having access to affordable housing is. Outside of guest speakers, the Chapter remained involved with many advocacy issues throughout the year, including: • Legislative Update and Zoning Modification updates (David Gill) • Government Affairs Repor t (Christian Deschauer) • Fairfax County Economic Advisory Commission (BrianWinterhalter) • Reston Comprehensive Plan Task Force with Supervisor Alcorn (David Gill) • Affordable Housing Preservation Taskforce (Soledad Portilla) • Arlington County’s Missing Middle Housing Initiative (Matt Roberts and Scott Tressler) The Chapter also provided a letter of suppor t and spoke at a public hearing in suppor t of the West Falls Church Plan Amendment, which would provide the possibility for extensive mixed-use development adjacent to and near the West Falls Church Metro station.The Amendment was approved. To get more involved with the Fairfax-AlexandriaArlington Chapter, please contact 2022 Chapter President BrianWinterhalter at or Vice President John Levtov at FAIRFAX – ARLINGTON – ALEXANDRIA NVBIA Chapter Updates The Fairfax Arlington Alexandria Chapter gathers for a Spring Mixer at Toll Brothers’ model townhome in Tysons. BUSINESS MEETING Third Friday of the month at 8:30 am Virtual meetings until further notice. Meeting times and locations subject to change, check NVBIA’s online calendar of events at 2021 Chapter President: Scott Tressler It felt like a much more robust and “normal” year for the Fairfax-Arlington-Alexandria chapter, with guest speakers and events back on the calendar and more in-person activities scheduled. Some highlights included Fairfax County Board of Supervisors Chairman Jeff McKay meeting with Soledad Portilla, Christian Deschauer, Andrew Painter, and Scott Tressler and joining our October Chapter Meeting to discuss the permit application process. Keynote speakers for Chapter meetings provided an impressive lineup, including: • Bryan Hill, Fairfax County Executive • Bill Hicks, director of Land Development Services at Fairfax County, who remains committed to an open and regular dialogue with NVBIA regarding the rezoning and site development application process to assure that they are processed in a timely and accurate manner. • Helman Castro, director of Operations of LDS at Fairfax County 22 | The Nor thern Virginia Building Industry Association 2021 Industry Impact Repor t

The Fauquier Chapter star ted out the year with a bang, developing goals to work with Fauquier County staff to develop a better process for fast tracking specific projects throughout the county through expedited reviews, become more of an advocate for the Town of Warrenton, and help membership grow within NVBIA and the Chapter. Members also established several committees within the Chapter to facilitate the business of the Fauquier Chapter : Membership, Economic Development, Planning Commission,Water and Sanitation Commission, Special Events, and Town of Warrenton. Each Chapter meeting now ends with a roundtable discussion of that month’s current issues and potential solutions and, as the year progressed, many of the chapter meetings were held in person—a welcome change after more than a year of vir tual meetings. Members also gathered for a Chapter Spring Mixer at Powers Farm & Brewery, with the Graze to Griddle Food Truck offering the best in casual dining. A beautiful afternoon allowed a large group of members to enjoy networking and camaraderie, as well as meet and chat with elected officials who took time out of busy schedules to join members at the event.The combination of Powers Brewery and the Graze to Griddle Food Truck was so good, in fact, that Fauquier’s first event of the season in 2022 will see the group return to the venue for another round of networking and fun! To get more involved with the Fauquier County Chapter, please contact 2022 Chapter President Tom Marable at or at 703.348.5800. FAUQUIER COUNTY NVBIA Chapter Updates DIDYOU KNOW? The Fauquier Chapter has six committees within its membership to help facilitate the Chapter’s priorities.They include: • Membership • Economic Development • Planning Commission •Water and Sanitation Commission • Special Events • Town of Warrenton The Fauquier Chapter gathers for a Spring Mixer at Powers Farm & Brewery. BUSINESS MEETING First Tuesday of the month at 4:30 pm Meeting times and locations subject to change, check NVBIA’s online calendar of events at 2021 Chapter President Tom Marable Advocacy. Networking. Education. Philanthropy. | 23

NVBIA Chapter Updates The Loudoun County chapter continued to power through the pandemic, with small group meetings with key County staff members Alan Brewer, Anita Tierney, and Valmarie Turner on the four th Thursday of each month.The group focused on a wide range of topics throughout the year, with a top priority focusing on the zoning ordinance rewrite.The NVBIA Loudoun chapter formed a subcommittee to track the issue, with members commenting on draft parking regulations and paying close attention to the upcoming Zoning Ordinance Review Schedule to ensure active engagement throughout the process. Following the Resolution of Intent to Amend in October 2021, upcoming dates to watch include: • General Public Open House (Early 2022) • First Draft Text Changes (Early 2022) • Round 3 Input (90-day public referral) (Early-Mid 2022) • Planning Commission (Mid 2022) • Board of Supervisors (Late 2022) Chapter members also followed and engaged on other Zoning Ordinance Amendments (ZOAM), including ZOAM-2020-0002: Subdivision Regulations, ZOAM-2018-0001: Shor t-term Residential Rentals, and the Telecommunication SPEX Fee Exemption. Third, members regularly repor ted Airpor t Noise Contour Overlay District updates (see Figure 1), with key actions taken including: • At the May 19, 2021 meeting, the Transpor tation and Land Use Committee (TLUC) approved the following motions, which will be forwarded to the full Loudoun County Board of Supervisors for a final vote: o Adopt the new contours with the exception of the area west of Arcola Mills Drive that is within the mixed-use place type (Motion passed 3 to 2: I opposed motion). o Recommend that existing homes that are moved into the new 2019 65 Ldn projected contour would be grandfathered and would not require disclosure or noise attenuations and performance standards would not be applied retroactively to existing homes (motion passed unanimously). o Ensure developments such as Brambleton that are mapped into the loudest contour can develop pursuant to their approval (motion passed unanimously). o U pdate CPAM and Zoning Ordinance concurrently with the provision that allows staff to have a latitude to schedule the zoning rewrite as needed with the aspirational goal of completing both CPAM and Zoning Ordinance update at the same time (motion passed unanimously). o Remove the one-mile buffer outside of the 60-65 Ldn contour (motion passed 3 to 2: I opposed motion). In addition to these three issues, Loudoun Chapter members continued to follow, comment on, and provide updates on a variety of other impor tant issues affecting the industry, including: • Deeds and Plat Plan Review (DAPPR) • LoudounWater • VDOT/Depar tment of Transpor tation and Capital Infrastructure • Business Development Assistance Group (BDAG) • Facilities Standards Manual (FSM) Committee • Environmental updates • Fiscal Impact Committee Outside of County-specific business, members are working to socialize the results of the NAHB Housing Study. Members all enjoyed a Fall Chapter Social in October at the Lenah Mill Clubhouse. To become more involved with the Loudoun County Chapter, please contact 2022 Chapter President Jessica Mata, Van Metre Homes, at 703.348.5825 or at LOUDOUN COUNTY BUSINESS MEETING Fourth Thursday of the month at 8:00 am Virtual meetings until further notice Meeting times and locations subject to change, check NVBIA’s online calendar of events at 2021 Chapter President Rich Brittingham 24 | The Nor thern Virginia Building Industry Association 2021 Industry Impact Repor t

NVBIA Chapter Updates Issues facing Prince William County were similar throughout the year, as Comprehensive Plan updates made progress throughout the year but is not yet completed; the sections that are taking longer to complete relate to the region’s most rural areas. Similarly, bond reduction and releases have been a year-long process, and County staff has been seeking advice from NVIBA’s Prince William Chapter members. Additionally, the Affordable Dwelling Unit (ADU) determination for the County has recently taken on greater impor tance as the Prince William County staff and Supervisors struggle with how to create an affordable housing policy. Again, Prince William Chapter members have been very much engaged in discussions throughout this process. Looking forward, members expect to continue work with County staff on all of these issues to find reasonable solutions. To become more involved with the Prince William County Chapter, please contact 2022 Chapter President Saif Rahman at or at 571.484.8225. PRINCEWILLIAM COUNTY BUSINESS MEETING Last Wednesday of the month at 8:00am Virtual meetings until further notice Meeting times and locations subject to change, check NVBIA’s online calendar of events at 2021 Chapter President Emily McKeown Advocacy. Networking. Education. Philanthropy. | 25

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The Custom Builder Council left behind a difficult 2020, with the first order of business naming Mark Stahl Chairman of the CBC in January, with his term continuing through 2022. Andrew Moore was namedVice Chairman. Members jumped in to serve on a wide variety of task forces to provide industry input in Fairfax County and the Town of Vienna, through the unique lens of smaller custom builders. Of par ticular impor tance was the CBC’s involvement in the Town of Vienna “Code Create” Zoning Code Overhaul—its first since 1964! The Council also came out of COVID restrictions with more par ticipation in NVBIA and Associate events and an increase in effor ts to draw in new members, recognizing that networking, sharing of best practices, and suppor t from a larger organization has never felt so impor tant! In Fall 2021, the CBC made the difficult decision to cancel the Parade of Homes due to challenges posed by COVID; attention has since shifted to increase par ticipation in the Spring 2022 Parade of Homes. Want to get involved or find out more about CBC? Contact Mark Stahl, 2022 CBC president, at 703.399.9897 or at Custom Builders Council (CBC) 2021/2022 CBC Chair: Mark Stahl Future Leaders 2021 Chair: Eric Bogumil COMMITTEES COUNCILS/ Eric Bogumil, chair of Future Leaders, tries his hand at axe throwing. A very engaged group continued to create a name for the Future Leaders in 2021! With well-organized leadership and a plan of action, 2022 is slated to be even more enter taining and informative. In addition to the very successful inaugural Axe Throwing event, Future Leaders had an Octoberfest at Mustang Sally’s in October. The philanthropic mission was to collect diapers and wipes for HomeAid’s “Builders for Babies” drive. In addition to these two larger events, the Future Leaders Group also held Happy Hour get-togethers throughout the year at several breweries in Nor thern Virginia.This vivacious group has enhanced its networking capabilities with these Happy Hours, attracting a wide demographic. A pay-as-you-go program, everyone has raved about the networking oppor tunities at these get-togethers. Look for new experiential events, as well as a continuation of the Happy Hours, in 2022! Future Leaders Committee will be headed by Gray Coyner/Thompson Greenspon in 2022. For more information, please contact Gray at The Future Leaders Committee enjoyed fraternity and frivolity in July at The Farm Brewery at Broad Run, for what proved to be an incredibly popular—and SOLD OUT!—Axe Throwing event. Following the event’s success, the Future Leaders Committee has promised to host the event again in 2022. Start practicing now, and we’ll see you there! Advocacy. Networking. Education. Philanthropy. | 29

Councils/Committees It was Chair Carol O’Connell’s first year at the helm of the Real Estate Finance Committee, but she hit the ground running by planning with members an Economic Seminar on Zoom in April to talk about trends and the impact of inflation following the worst of the pandemic at its center. Panelists included Doug Duncan, chief economic officer for Fannie Mae; Jeannette Chapman, director of the Schar School of Policy and Government, Stephen S. Fuller Institute; and Larry Baer, chief analyst at MarketAler t. All provided in-depth and fascinating perspectives on the economic outlook of 2021, interest rates, bubble versus boom for the housing market, and lumber shor tages and the supply chain. The last seminar of the year was the Real Estate Finance Committee’s 2021Wrap-up and 2022 Look Forward.The event was held vir tually on December 15, 2021, and featured three dynamic speakers: John McManus, Founder and President,The Builders Daily; Mark Vitner, Managing Director and Senior Economist,Wells Fargo Corporate & Investment Banking; and Ben Sage, Senior Regional Director, Zonda.The conference focused on national and regional trends and statistics, local market trends, and how the industry will likely fare in the coming year. Real Estate Finance Committee members will meet on the second Tuesday of every month; for more information or to join, please contact Carol O’Connell at or 703.738.0936. Real Estate Finance 2021 Chair: Carol O’Connell When it became clear that the impact of COVID would extend well beyond weeks and months—and then continued affecting in-person gatherings into a second year—the Membership and Retention Committee knew that its focus in 2021 would need to square solely on getting people back out into the field and networking.They also focused attention on bringing back members who had lapsed in 2020, reminding them that NVBIA was doing more in-person events and working even harder to help make connections and friendships for both Home Builders and Associate members. Perhaps most impor tantly, the committee worked to remind members and prospective members of NVBIA’s role in advocating to keep construction considered an essential business during the pandemic, ensuring that both builders and associates alike didn’t lose their businesses! Also recognizing that getting new members invested quickly is an impor tant aspect of long-term retention, committee members worked hard to spend more time with new members, helping them feel welcomed by having another Associate meet them at events and introduce them to different contacts beneficial to their businesses. New Member Recruitment and Membership Retention Committee members regularly meet on the first Tuesday of every month from 9:00 to 10:00 a.m.; for more information or to join, please contact Mary Pociask at Member Services 2021 Chair: Jessica Francis The Associates Committee, made up of member companies that provide suppor ting services and products to the home building industry, was established to “take an active role in enhancing NVBIA goals and focus on bringing membership together by creating an environment where both builders and associates benefit from par tnership.” They achieve their mission a variety of ways, with one of their most visible effor ts serving as volunteers at NVBIA events throughout the year, helping set up, register and check in guests, serve and bar tend, and clean up after the last member and guest leave. It’s a huge under taking at every event that exponentially expands NVBIA’s small staff, saves member dues by not having to hire on-site staff, and gives Builder and Associate members a lot of impor tant facetime! Additionally, the committee is actively involved with the Membership Committee, working to recruit and retain new members. Looking forward, the Committee is exploring a par tnership with the developing Ambassador’s Program, which allows members the unique oppor tunity to serve as representatives of the association, promote NVBIA events and benefits, and work with fellow members to help grow NVBIA. The Committee is similarly committed to improving the impor tance and value to the Associate Members through a 2022 survey, from which they hope to better understand value gained from events and networking, how to improve Committee meetings, and ideas on future Committee priorities. The Associates Committee meets on the third Tuesday of every month at 3:00 p.m. at the NVBIA office and/or virtually. For more information or to join, please contact Jana Gilbert at 703.670.0985, ext.1142, or at Associates Committee 2021 Chair: Jana Gilbert 30 | The Nor thern Virginia Building Industry Association 2021 Industry Impact Repor t

At 230 members strong,Women in the Building Industry (WBI) has grown to be one of NVBIA’s largest and most active committees since its founding in 2015. And in 2021, members took note of their size by focusing attention on the creation of bylaws, in par ticular focusing on formalizing their leadership succession and term limits.With Melissa Farrar leading the charge, members ultimately developed formal procedures for naming a president: A candidate must have first served as a member and a chair of a WBI committee before leading the group at large, and terms would be extended to two years. Similar procedures were developed for the chairs of WBI’s three committees: education/events, public relations, and community service. The group also reviewed WBI’s vision and committee goals, with a vote and approval by NVBIA and WBI in December 2021. Early on in the year,WBI recommitted to building new relationships and forging deeper connections within its community, asking all members to ask themselves three questions: 1.What do I want to achieve? 2.What steps will I take to get there? 3. How can I help others in WBI? And with that in mind, a year of activities and business-building effor ts launched. In March,WBI gathered for a vir tual conference, “NewYear, New Thoughts,” with Kari Anne Munstead, photographer, speaker, and coach. She discussed the impor tance of asking yourself how you want to feel in 2021, rather than focusing solely on what you want to accomplish. “Write down all words that come to you … like present, confident, courageous, energetic, hopeful, powerful,” she urged. “Hang that piece of paper with the words describing how you want to feel in 2021 somewhere where you’ll see it multiple times each day; read them aloud, every day. 2020 was a difficult year, and things will not change overnight in 2021. But with a different mindset, we can create an even better year and an even better version of ourselves.” In April,WBI Community Service volunteers turned out to help Fairfax ReLeaf, a nonprofit that works with volunteers to help conserve and restore urban forests in Nor thern Virginia. Together, they removed approximately 200 cubic feet of invasive species, planted 20 new seedlings, and rescued 20 young trees from being overrun by invasives! In November,WBI gathered for an in-person breakfast event at First Excel Title, headlined by a “ ‘Shape’Your Leadership Future” seminar with Debbie Boyce. Women in the Building Industry 2021WBI President: Melissa Farrar 2021WBI Education and Events Chair:Tricia Neale Advocacy. Networking. Education. Philanthropy. | 31