Home Improvement
Maintaining your home and making it more eco-friendly.
New Lead Paint Rules for Contractors
Beginning Thursday, April 22, Earth Day, contractors working on homes built before 1978 must prove that they are following the Environmental Protection Agency’s new rules regarding containment and cleanup of lead paint – or face fines of up to $37,500 a day.
Pass-through kitchen
The new regulation requires painters and renovation contractors to be trained and certified in EPA-approved lead-paint management methods.
The EPA estimates that the new procedures will add $8 to $167 to the average interior remodeling project. Contractors say the cost will be much more.
Source: Washington Post, Deborah k. Dietsch (04/17/2010)
Tax Credits for Replacing Windows, Doors, and Skylights
Do you qualify?
You qualify for this tax credit if:
High-end products are more expensive, but they are often better constructed and more energy efficient. Image: Andersen Windows, Inc.
Does it feel like money is escaping through your home’s drafty windows, doors, and skylights? You might be able to keep at least some of that cash in your pocket by taking advantage of federal energy tax credits for retrofitting your house with qualified energy-efficient replacements. You can claim a tax credit of up to $1,500 for upgrading the windows, exterior doors, and skylights in your primary residence during 2009 and 2010.
The credit is based on 30% of the cost of materials, so a $5,000 purchase would max it out. But a tax credit alone isn’t reason enough to start calling contractors. Do a little homework first. The true value of replacing aging windows, doors, and skylights isn’t always an open-and-shut case.
Follow the 15-year rule for windows
A good rule of thumb for window replacement: Don’t bother if they’re less than 15 years old, says Jim Rooney, a home inspector in Annapolis, Md. The savings on your energy bills likely will be negligible since window technology hasn’t changed that radically and the integrity of your windows should still be intact. Shoddy installation or poor manufacturing may call for exceptions to the 15-year rule. Windows that are 20, 30, or more years old are prime candidates for replacement.
Most of your focus should be on windows, since they’re more numerous, but skylights are notorious for energy loss too, not to mention water leaks. Exterior doors tend to outlast windows, so keep them unless the upgrade is purely for aesthetic reasons. Besides, weather stripping and snug sweeps can boost the energy efficiency of exterior doors for a whole lot less money.
Adding up the costs—and savings
With windows, doors, and skylights, you get what you pay for. Expect to shell out between $500 and $1,000 per window including installation, or about $10,000 total for a moderately sized house of about 2,000 square feet. New energy-credit-qualified doors and skylights are also in the $500 to $1,000 range, including installation.
Tom Herron, of the National Fenestration Rating Council, says products on the higher end of the cost scale are usually better constructed and more energy efficient. NFRC is a non-profit organization that administers the rating and labeling system for the energy performance of windows, doors, and skylights.
It could take years to recoup the upfront costs, but you should see an immediate reduction in your energy bills. In general, you’ll save $126 to $465 a year if single-pane windows in a 2,000 square foot house are replaced with tax-credit-eligible windows, according to the Efficient Windows Collaborative, a trade group. That’s 15% to 40% off the typical energy bill.
Do my replacements qualify?
A label alone doesn’t guarantee your new windows, doors, and skylights qualify for the energy tax credit, but it does provide critical information related to eligibility. To qualify, windows, doors, and skylights must have a U-factor of 0.30 or less and a Solar Heat Gain Coefficient (SHGC) of 0.30 or less. The U-factor measures how well a product prevents heat from escaping, and the SHGC gauges how well a product blocks heat from the sun. Labels also carry information on light transmission, air leakage, and condensation resistance.
Herron, of the NFRC, says about 80% to 85% of the manufacturers in North America provide NFRC labels. All Energy Star qualified windows carry an NFRC label, according to Energy Star, a joint program of the U.S. Department of Energy and the U.S. Environmental Protection Agency that promotes energy-efficient products and practices.
Resist the urge to trim costs by purchasing cheaper windows, doors, and skylights with poor U-factor and SHGC ratings. Not only will you miss out on the tax credit, energy bills won’t come down much.
Taking advantage of the tax credit
A credit is especially valuable because it directly reduces the amount of tax owed, as opposed to a deduction, which lowers the amount of taxable income. To be eligible for the full credit you must owe more in federal taxes than you’re trying to claim. Use IRS Form 5695 to take advantage of the credit, which is cumulative for 2009 and 2010 only. You can’t claim $1,500 for each tax year, but you can spread the $1,500 over the two-year period.
Uncle Sam may want proof that your new windows, doors, and skylights meet energy-efficiency standards, so be sure to save receipts, product stickers, and certification statements. The latter can often be found on packaging or manufacturers’ web sites. As for receipts, ask contractors to itemize expenses. Installation costs aren’t eligible for the credit; only materials are.
Keep in mind that a variety of energy-efficiency improvements to your existing home, including insulation, roofs, and HVAC, count toward the credit limit. You can’t claim separate $1,500 credits for each upgrade, nor can you claim the credit for a newly built home. Matt Golden, president and founder of San Francisco-based Sustainable Spaces, says homeowners can often lower energy costs for a lot less, and still get the tax credit, by insulating attics instead.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
Gil Rudawsky has been covering business and consumer issues as a reporter and an editor for 18 years, most recently as a deputy editor at the Rocky Mountain News. He lives in a house built in the 1930s, and always keeps the home’s character in mind when making upgrades.
Trends in Green Building and Living
Creative Commons License photo credit: kevindooley
The Earth Advantage Institute, a non-profit that certifies sustainable homes, identified these green-building trends, based on its relationships with builders, architects, real estate practitioners, and lenders.
- Smart grid and connected homes. The development of custom and Web-based display panels that show real-time home energy use, broken out by individual appliance will increasingly drive consumer behavior.
- Energy labeling for homes and office buildings. Accurate energy rating systems for homes and office spaces will make it easier for home owners and buyers to compare and could galvanize owners to make needed energy improvements.
- Building information modeling software. The increasing sophistication and lowered cost of CAD software with more accurate algorithms for energy modeling will encourage greater use.
- Financial community buy-in to green building. Lenders and insurers will get behind green building because it’s good for their bottom lines.
- “Rightsizing” of homes. A larger home no longer translates into greater equity.
- Eco-districts. The creation of walkable, low-impact communities in the suburban setting is gaining steam.
- Water conservation. The Environmental Protection Agency finalized the voluntary WaterSense specification for new homes in December of 2009, which reduces water use by about 20 percent compared to a conventional new home. Water will be the essential resource in the next decade.
- Carbon Calculation. With buildings contributing roughly half the carbon emissions in the environment, the progressive elements in the building industry are looking at ways to document, measure, and reduce greenhouse gas creation in building materials and processes. This effort will be heightened once a federal cap-and-trade mechanism is launched in this country.
- Net Zero Buildings. A net zero building is a building that generates more energy than it uses over the course of a year, as a result of relatively small size, extreme efficiencies and onsite renewable energy sources. We are close to being able to do this routinely.
- Sustainable building education. This will create opportunities for professionals involved in the building industry, from real estate to finance and insurance.
Source: Earth Advantage Institute (01/08/2010)
A Financial Plan for Your Home
If you spend a weekend creating a financial plan for your home now, it could save you money in the long run. Image: Veer
You probably already have a financial plan for yourself in place. Most likely you sat down with an advisor at some point to set up a budget and diversify your investments. Or maybe you did it yourself online or at the dining room table. Either way, smart move.
But what about your home specifically, probably the biggest investment you’ll ever make in your life? Did you really take everything into account: repairs and upgrades, the mortgage, insurance, and taxes? Probably not.
Your house requires a financial plan of its own. Spend a weekend creating one. Once you have a handle on your home’s expenses you can devise a long-term strategy that’ll let you live there for years with maximum enjoyment and minimum anxiety. These are the four central elements you need to address.
The mortgage: Paying it—and then some
Yes, you already shell out a lot for your mortgage, but can you pay more? Even a little extra each month can add up. Let’s say you have $200,000 outstanding principal and a 20-year fixed-rate mortgage at 5%. Your monthly payment is $1,319.91. But if you can manage to pay another $100 a month, you’ll save $14,887 in interest. Run the numbers for yourself.
Alan D. Kahn, a financial planner in Syosset, N.Y., likes the idea of early payoff because lowering debt leaves you free to spend money elsewhere later on. There’s an emotional benefit as well. It can feel awfully good to own your house outright as soon as possible. And don’t fret too much about losing the mortgage interest deduction come tax time. Toward the tail end of the life of a loan most of your payment is going to the principal, not the interest.
Nevertheless, the same extra $100 might also go into a retirement plan every month, or be put aside for the inevitable home repairs (more on those later). Michael Kay, a financial planner in Livingston, N.J., says while a debt-free life may be enormously important to your peace of mind, an extra $1,200 toward your child’s college fund every year may feel even better. It’s about what’s ultimately important to you, both emotionally and financially.
Insurance: Protecting your property
You’ll want homeowners insurance with full replacement coverage in case your house is burned to the ground. This sounds simple, but be careful on the calculation. Remember that you own a house as well as the land on which it sits. So even though you bought your home for $300,000, it may cost only $100,000 to rebuild it. Your policy limits should reflect this.
The differences are regional. Where land is at a premium, like much of Southern California, a higher percentage of the purchase cost is for the property rather than the structure. Where land is cheap, like much of North Dakota, most of the value of a new house is the house itself. Don’t be deceived by shifts in market values. You may have bought a $1.2 million townhouse in Florida during the boom that now may only sell for $600,000. But the replacement cost of the townhouse hasn’t changed much, so you can’t cut insurance costs that way.
Do, however, try to cut costs by asking your insurance agent about discounts. Making structural improvements, such as adding storm shutters, can lead to lower rates. Membership is certain groups, such as AARP or veterans’ organizations, entitles some policyholders to breaks on premiums as well.
Repairs and renovations: By choice or necessity
Throughout the life of your house, you’ll be making two kinds of changes. The first is the fun kind, like a marble floor for the living room. The second is the essential, behind-the-scenes change: a new water heater. You don’t have a choice about when you’ll do the latter, but you can prepare for it financially.
It’s a good idea to have a rainy-day fund. Start with the inspection report you received when you bought the house. Did the inspector indicate that you would need a new roof in five years? A new furnace in 10? Get estimates on what these repairs will cost and start saving. Consider ongoing non-emergency maintenance too. Do you live in New England? Price a snow blower and get bids from plow services. Resist the temptation to take care of everything with home equity loans, which defeat efforts to pay off the mortgage early.
As for the discretionary upgrades, act prudently. Matthew P. Havens, a financial planner in Hingham, Mass., has seen too many people rationalizing lavish upgrades as an investment when they really were lifestyle decisions. According to Remodeling magazine, an upscale major kitchen upgrade, for example, could cost nearly $112,000, but only about 63% of that will be recouped in the home’s resale value. This isn’t to say you shouldn’t upgrade. If you can afford to redo your bathrooms, go ahead. Just don’t confuse your necessary repairs (new oil furnace—about $4,000) with your discretionary upgrades (Viking range—$6,000 and up).
Taxes: (Almost) no way around them
Taxes are an essential part of your home’s financial plan. The bank that holds your mortgage may already handle your real estate taxes with an escrow account. If so the expense is built into your monthly mortgage payment. Check your statements or call the lender. Otherwise create a dedicated fund for property taxes, which can run into the thousands of dollars annually.
You may be able to reduce your tax burden by getting a reassessment. Do your homework first. Are comparable houses taxed less than yours? Ask the local assessor what formula is used to set tax rates. Kay, the New Jersey financial planner, researched and then challenged the assessed value of his own home and got a 15% rollback.
If you’re in a special group, you might get some help from state or local programs. Check around to see what’s available in your area. New York State, for example, has its Star Program for giving senior citizens some relief from school-related property taxes.
Richard J. Koreto is a freelance writer. He has been editor of several professional financial magazines and is the author of “Run It Like a Business,” a practice management book for financial planners. He and his wife own a pre-Civil War house in Rockland County, N.Y.
Thanks to innovative new technology, today’s super-efficient low-flow showerheads save water, reduce your energy bills, and still feel good to use.
| Save Money | Med $150/yr off water heating |
|---|---|
| Effort | Low 10 mins to 1 hr to install |
| Investment | Low $50 to $200 |
You’ve heard it for years: Save water by replacing your old showerhead with a low-flow model. But if you’re like a lot of people, you may have ignored the message. That’s because you’re likely thinking of the early low-flow versions, which worked by simply restricting output or pumping the stream full of air. While that saved water, it didn’t make for a very satisfying shower experience. These days, thank goodness, it’s different. With one of the new generation of ultra-efficient showerheads, you can reduce shower water use—and energy consumption, since we’re talking about water you pay to heat—by up to 50% while still enjoying a luxurious, powerful spray.
New technologies, bigger savings
Before 1992, showerheads pumped out five or more gallons per minute (gpm), accounting for nearly 20% of indoor water use. Federal law cut that to 2.5 gallons, but the latest water-saving models do better still. Borrowing windshield-sprayer technology from the automotive industry, Delta’s H2Okinetic Technology manipulates droplet size and direction to make only 1.6 gpm feel drenching. That’s a 36% reduction over a standard low-flow showerhead. Bricor uses a patented vacuum chamber that aerates and compacts water under pressure to deliver an intense blast with 1.25 gpm or less. Other manufacturers use laminar flow, which puts out dozens of parallel streams instead of an aerated spray, creating the sensation of more water. The type you choose depends on personal preference, but at $50 to $200, any of these can quickly pay for themselves in reduced water-heating costs. You may even be able to score one for free with a rebate through your local utility.
To measure your shower’s flow, put a bucket marked in gallon increments under the spray. If the water reaches the one-gallon mark in less than 20 seconds, you could benefit from a low-flow showerhead.
First, check your plumbing
While replacing your existing showerhead with one of these super-high-efficiency models can be as easy as screwing in a light bulb, it’s a good idea to first assess your plumbing. The big concern is the potential for scalding or getting hit with an icy blast. Because less water is flowing through the showerhead, sudden fluctuations in temperature can be more extreme.
Homes built after the mid-1990s usually have an automatic temperature compensating (ATC) valve installed as part of the shower plumbing inside the wall. These protect against rapid changes in temperature—say when the dishwasher cycles or a maniacal sibling keeps flushing the toilet. Quick check: If your shower has an old two-handle faucet, chances are it does not have an ATC valve. (Neither do most new two-handle systems.) In that case, simply sticking on a low-flow showerhead to save water is a bad idea. “The only appropriate way to retrofit a shower with a two-handle faucet is to eliminate the outdated faucet and install a new valve and showerhead,” says Shawn Martin, technical director of the Plumbing Manufacturers Institute. 
Even then, you can’t be absolutely certain that the valve will work properly with an ultra-low-flow showerhead. That’s because most ATC valves are certified for the current standard flow rate of 2.5 gpm. While it’s expected that soon all new valves will be certified to 2.0 gpm, your best bet, if you’re installing a new valve and showerhead now, is to buy them from the same manufacturer so you’ll know they’re designed to work together.
By early 2010, the EPA plans to start putting WaterSense labels on showerheads the way they have for toilets. Then it will be easier to identify the models that offer the biggest water savings and the best performance.
Other ways to pump up shower efficiency
In addition to offering low-flow nozzles, manufacturers have come up with other ways to make showering more efficient. Neco, an Australian company that 
specializes in sustainable products, has a thumb-adjusted volume control on its Rainmaker head. A few high-end models feature “pause” buttons that let you to stop and restart the water at the same temperature—perfect for taking a Navy shower. That’s when you wet yourself down, turn off the water while you lather up, and then turn it back on to rinse. Common practice on naval ships, where fresh water supplies are limited, this technique uses as little as 3 gallons, compared with the typical “Hollywood shower” that uses 60 gallons every 10 minutes. That amounts to a savings of 15,000 gallons a year per person.
Of course, the danger of all these new low-flow showerheads is that you’ll be tempted to linger too long in your own private Niagara. Several companies have come out with shower timers to nudge habitual drenchers. The Shower Manager cuts the taps when time’s up, and Eco Drop Shower, a stall unit by Italian designer Tommaso Colia, purports to save water not from the top down but from the bottom up. As you shower, a pattern of concentric circles embedded in the floor rises up to the point of discomfort, forcing you to exit. Just make sure to turn off the water first.
Laura Fisher Kaiser is a contributing editor to Interior Design magazine and a former editor at This Old House Magazine. A Navy brat, she feels guilty for not taking Navy showers.
Federal Appliance Rebates Launch
SAN FRANCISCO—Next year may be to appliance buyers what 2009 was to car buyers: time for government rebates.
Modeled after the popular Cash for Clunkers program, which was intended to get cars with low gas mileage off the road, a federal appliance rebate program is launching in early 2010. It offers a boost to people buying energy-efficient clothes washers, refrigerators and other appliances—those that qualify for the federal “Energy Star” designation—and to manufacturers, whose sales fell 10% in 2008 and another 12% through mid-December this year.
The program has only $300 million, one-tenth as much money as Cash for Clunkers, or about $1 per U.S resident, so it could run out fast. States are receiving roughly the same amount per capita, with California getting the most at $35.2 million, but what’s eligible varies by state.
Here’s what to keep in mind as you decide whether to swap your washer for that supposedly whisper-quiet model or your old white refrigerator for a shapely stainless-steel number.
What’s my state offering?
For state by state information, visit the federal website http://energysavers.gov and click on “state appliance rebate program” on the right.
California residents, for example, can get cash back on three types of appliances: $100 for washing machines, $75 for refrigerators and $50 for room air conditioners. Wisconsin offers rebates on washers and fridges plus $200 for boilers or furnaces, $75 for central air conditioning or geothermal heat pumps, $50 for freezers and $25 for dishwashers.
(Also in effect through Dec. 31, 2010, is a federal tax credit for 30% of the cost up to $1,500 on equipment for a primary residence.)
How do I know it’s a deal?
Joe McGuire, president of the Association of Home Appliance Manufacturers, said buying Energy Star appliances can mean hearty power savings. But it’s important to make sure you save enough in water and energy bills over time to justify paying for a new unit.
“A good example is a 10-year-old clothes washer,” he said. “With Energy Star, you could reduce utility costs by $145 a year and save 5,000 gallons of water a year.”
At that rate, a typical $500 to $700 dishwasher would pay for itself in four years. In larger households that use more power and water for laundry, the payoff can come much sooner.
It’s probably not worth replacing appliances less than five to seven years old just because rebates are available, unless you plan to upgrade to a far more efficient model. That’s because newer appliances are already more efficient. But switching from a top-loading to front-loading clothes washer could in itself cut water use enough to make a purchase worthwhile.
The older the appliance, the greater the possibility of saving money by buying a new one. McGuire says a 20-year-old refrigerator uses three times as much power as Energy Star-approved units made today, some of which run on less than 60 watts.
“You would save over $250 a year on an average 20-year-old refrigerator if you replaced it,” McGuire said. “That’s about $1,200 over five years. That is real savings to consumers.”
The Department of Energy estimates Americans saved more than $19 billion on utilities last year using Energy Star products.
When will it end?
Rebates will be available until February 2012 or the money’s gone. And Jen Stutsman, a spokeswoman for the Department of Energy, expects the funds to run out fast.
Source: Associated Press/AP Online
Tips for Basement Floors or concrete floors
Although moisture problems can be a concern for basement finishes, there are many types of flooring that are ideal for basement applications. The key to successful basement flooring installations is to ensure that the basement is dry and that there is a smooth, flat surface for the new finish material.
Moisture and humidity
Because the floor of your basement is below grade and the lowest surface within your house, it requires special considerations before flooring can be installed. If your basement has ever been susceptible to water infiltration and flooding, those problems must be remedied before flooring is installed. Sealing your basement from water and moisture infiltration can cost from several hundred dollars to a few thousand dollars or more.
Humidity and condensation are other concerns. Because moist, humid air is heavy, it tends to sink to the lowest part of your house—your basement. There, warm, humid air can come in contact with relatively cool surfaces, such as a concrete slab floor, and condense. Keeping condensation in check during warm, humid months helps ensure that flooring remains stable and free from mold and mildew growth.
Most likely, your existing heating and cooling system is equipped with a dehumidifier that maintains relative humidity (RH) levels between 30% and 60%, which the Environmental Protection Agency (EPA) and building codes recommend for a healthy indoor environment. A portable, plug-in unit for single-room use costs about $200 and includes a monitor to regulate the RH level.
Level floor surfaces
It’s also critical to inspect your existing concrete basement floor and make adjustments for any noticeable slopes or flaws that might damage the new floor finish or affect its aesthetic appeal.
Patch or fill minor cracks and flaws with an elastomeric sealant made especially for concrete. A 10-ounce tube runs from about $4 to $10 at home improvement centers.
Use a 3-foot or longer bubble level to see if any sections of the floor slope more than a half-inch in 8 feet. Fill in low spots with a self-leveling compound, available at home improvement centers for about $30 for a 50-pound bag. For about $60 to $80 per day, rent a concrete sander to reduce high spots.
Tile backerboard, made from cement or fiber-reinforced gypsum, can be used as a subfloor over your basement slab to create a smooth, level surface. Backerboard can be glued down or held in place with concrete nails. Backerboard costs about $11 for a 4×5-foot sheet. Allowing for waste, expect to pay about $500 for enough backerboard to cover the floor of a 600 sq. ft. basement.
Once you have satisfied all potential moisture-related issues and created a smooth, level surface, you’ll have many flooring choices for your basement retreat.
Carpeting
According to the NAHB Research Center’s annual survey of builder practices, more than 28% of basement floors in newly built homes are finished with carpeting. “Most of our clients want carpet in the basement,” says Sherrille Sabo, operations manager for COS Construction in Edwardsville, Ohio, a construction company that remodels about a half-dozen basements per year into finished living spaces. “It’s warmer and adds a level of soundproofing.”
Low-pile carpets such as Berber or other looped varieties show less wear than cut-looped or shag-like carpeting and are less expensive; all or partial nylon blends also are more durable and less costly than all-natural options.
Wall-to-wall carpeting is among the least expensive and easiest to install options for basement flooring. A mid-range nylon Berber carpet costs about $1 to $3 per sq. ft. With glued-down perimeter tack strips and a standard pad, plus professional labor, the cost to buy and install a new carpet is about $1,200 to $2,400 for a 600 sq. ft. basement.
If you’ve addressed any moisture issues in the basement but are still concerned about dampness or the chances that liquid spills or pet accidents may occur, consider a pad that is made to block moisture from either seeping up into the carpet or seeping down through the pad to the concrete floor. Moisture-resistant pads are about 70% more expensive than standard pads. They may reduce cleanup chores, but they will not solve chronic moisture problems.
Also, consider carpet tiles. Nylon pile 20-inch squares come in a variety of colors and styles and cost $2 to $4 per sq. ft. Most are made with integral pads and self-adhesive backings for easy, do-it-yourself installation.
Vinyl
Resilient vinyl flooring is durable, moisture-proof, and maintenance-free. Sheet vinyl comes in 12-foot-wide rolls that virtually eliminate seams. Self-sticking vinyl tiles are ideal for do-it-yourself installations.
There are an enormous variety of colors and styles from which to choose. In general, thicker vinyl translates to higher quality and cost. Thicker vinyl can feature a textured surface, and some types have the appearance of real stone and wood.
Vinyl installs easily over a concrete slab, but it’s critical to make sure the surface is smooth, as imperfections are sure to show through and possibly damage the flooring. A thicker (and more expensive) grade of vinyl flooring may help hide slight bumps in the concrete.
Sheet vinyl and vinyl tile can cost $1 to $5 per sq. ft. Figure another $1 to $2 per sq. ft. for professional installation, depending on the complexity of the basement configuration.
Ceramic tile
Ceramic tile installs readily over a concrete slab and the many styles and colors available make it a good designer’s choice. Properly installed and maintained ceramic tiles should last as long as your house.
In some below-grade applications, condensation may occur on the surface of ceramic tiles, making them slippery. If ceramic tile is your primary choice for your basement but condensation is a concern, consider glazed ceramic floor tiles with an anti-slip finish. Look for tiles that meet slip-resistance standards specified by the Americans with Disabilities Act.
Costs for ceramic tile varies widely, depending on size, shape, and pattern. A standard domestic 12×12-inch ceramic tile might cost 80 cents per tile at home improvement center, while a highly decorative tile from Mexico or a porcelain stone tile from Italy can cost $10 per tile or far more. Professional installation adds $5 to $10 per sq. ft.
Engineered wood
Until the advent of engineered hardwood flooring, few builders or remodelers would recommend or risk installing a hardwood floor over a below-grade concrete surface. Because solid wood changes dimensions with fluctuations in temperature and humidity, the chances of warping and cracking were too great. In addition, there were few reliable options for installing wood flooring without traditional nails or screws.
Engineered wood floors, however, provide a more stable substrate for the planks while delivering the look and feel of a solid wood floor. They feature a thin veneer layer of solid wood that is laminated to plywood backing. Plywood is more dimensionally stable than solid wood, allowing the planks to withstand temperature and moisture fluctuations without warping.
Engineered hardwood planks are installed one of two ways. Some varieties are designed to be glued to the basement floor using an industrial adhesive. Others are “floated” over a layer of thin foam sheeting; the planks are held in place by a system of interlocking ends and edges.
Engineered wood planks are priced from $2 to $20 per sq. ft. Their factory-finished veneer is virtually maintenance-free. Installation is about $4 to $5 per sq. ft., regardless of whether the planks are glued down or floated.
Laminate flooring
Laminate flooring has similar construction to engineered wood flooring, but the top veneer is a layer of tough film covered with plastic resins. Laminate flooring mimics the look of wood, stone, and ceramic tile. The core layers of laminate flooring are dimensionally stable; some varieties are treated to resist moisture and make good choices for basement applications.
Laminate flooring planks and tiles “snap” together and float over the concrete floor on a foam pad. The flooring sells for $3 to $5 per sq. ft. at home improvement centers; installation adds $4 to $5 per sq. ft.
Concrete
One of the simplest and least expensive options for finishing a basement concrete slab is to paint or stain the slab. A one-gallon can of either coating option is about $30 and covers about 80-100 sq. ft. If you elect to use paint, consider an acrylic formula with slip-resistant surface finish.
Assuming the basement concrete slab is unsealed and still porous, a colored stain will likely penetrate fairly well and hold its color for several years before reapplication. A concrete paint probably will show wear in a high-traffic areas, and will require a reapplication every 3-5 years.
An epoxy coating system, which combines a solvent-based adhesive coating with decorative (and slip-resistant) color chips, is far tougher than a concrete paint or stain. It costs about 3 times as much as a gallon of paint or stain but covers four times the area and leaves a tough, industrial-looking finish.
Another option is to cover the concrete slab with an additional, thin layer of concrete that has been pigmented with color. A thin-coat can also be stamped with a pattern to resemble brick, flagstone, and even wood planks. Because the color is throughout the coating, it will never wear away. Expect to pay $2 to $3 per sq. ft. for a thin-coat installation.
Rich Binsacca has been writing about housing and home improvement since 1987. He is the author of 12 books on various home-related topics, is currently a contributing editor for Builder and EcoHome magazines, and has written articles for such magazines as Remodeling, Home, and Architectural Record, among several others. His first house in Boise featured a finished basement with two bedrooms, a laundry area, and the mechanical room; he had to dismantle a Queen-sized box spring to get it down the stairs.
Tax incentives for historic preservation
If you’re considering buying a home in Old Town Alexandria, or if you’re moving to an older neighborhood anywhere in Northern Virginia, you might want to consider this before taking on a historic preservation project.
Properties with historical significance may qualify for a tax credit worth 10% or 20% of the renovation costs. Image: Jon Skvarka, Rebuilding Together New Orleans
Tax breaks at the federal and state levels are available to homeowners to encourage the preservation of historic properties. The incentives range from tax credits that reduce dollar for dollar the amount you owe the IRS, to easements that can increase deductions and decrease estate and property taxes.
The tax rules are complicated—some incentives apply to investment properties only, while others include owner-occupied homes—but the financial rewards can be worth the effort. Be prepared to do significant research, file a lot of paperwork, and quite possibly seek out professional help.
Federal tax credits for historic investment properties
The federal Historic Preservation Tax Incentives program offers tax credits equal to either 10% or 20% of qualifying renovation costs. Depending on what you own, you may be eligible for one or the other, but not both. The main drawback is the tax credits don’t apply to owner-occupied homes. Investment properties qualify, however.
The 20% tax credit is for properties certified as historic or in a historic district, as approved by the National Park Service. Although certification is a national program, owners have to go through their state historic preservation office. Eligible properties, including rowhouses and wood-framed homes, must be rehabilitated for commercial, industrial, agricultural, or rental residential purposes.
Essentially, a home has to be at least 50 years old with minimal changes from the past to be eligible for the 20% tax credit. It should be associated with important historic events or people, for example, or display significant aspects of architectural history. Renovation expenses must total at least $5,000.
The three-part certification process can be involved—and expensive. There’s a $250 processing fee. A second fee, which can run as high as $2,500, is based on the total cost of the project and is due when the renovation is completed. Fees are waived for projects under $20,000. The initial review by the National Park Service and your state historic preservation office can take as long as 60 days.
But if you are certified and follow the technical guidelines, Uncle Sam essentially reimburses 20% of the cost of renovations. As NPS spokesman Michael Auer explains, if you spend $200,000, you reduce your tax liability by $40,000. You may be able to carry forward part of the tax credit to future years, or even back a year. Consult a tax adviser.
The 10% tax credit is for any structure built before 1936 that doesn’t qualify as historic under the 20% program. The property can only be used for non-residential purposes. However, use as a hotel is considered commercial, not residential, so an old home converted to a bed-and-breakfast, for example, would likely be acceptable.
For either tax credit, use IRS Form 3468. Owners of historic properties should consider hiring a professional consultant to help with everything from architectural drawings and photographic documentation to accounting and paperwork. Needs will vary greatly. North Carolina’s state historic preservation office estimates you may require a consultant’s help for one to two weeks at a rate of between $50 and $100 per hour. Consulting and application fees alone can hit $10,000 or more.
State tax breaks for owner-occupied historic homes
Unlike the federal tax credits, which are limited to investment properties, many states offer incentives geared toward the preservation of owner-occupied historic homes. Check with your state historic preservation office.
In Virginia, for example, if your home is listed on the state and national registers of historic places—the two lists usually overlap—you can get a 25% state tax credit for approved renovation expenses. Homes that aren’t individually listed but are located in historic districts may also qualify. Virginia has more than 400 historic districts.
Covered costs are spelled out in great detail. Virginia uses the same renovation standards as the National Park Service. If you fail to follow the guidelines, such as using materials that don’t convey the proper visual appearance, you can lose the credit. Application fees can add up to as much as $3,000, depending on the total cost of a renovation.
Virginia also has an easements program, which in effect offers owners of historic properties tax incentives in exchange for signing away rights to alter the historic character of the properties. Easements are usually permanent and binding on all future owners.
There are considerable financial advantages. An easement will likely reduce a property’s value, so you might be able to take the difference as a charitable deduction on your federal tax return. Your local property taxes will likely fall as well. Estate taxes could be lowered too, since the value of the property you leave to your heirs would’ve declined.
New York, too, has tax breaks specifically for owner-occupied historic houses. The state offers a tax credit worth 20% of qualified rehabilitation costs. Effective in 2010, the value of the credit can go as high as $50,000.
Homes must be owner-occupied and listed on the state or national register of historic places, either individually or as part of a historic district. The program is aimed at economically distressed areas. Among other stipulations, the project must cost more than $5,000 and be pre-approved by the state historic preservation office.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
Richard J. Koreto is a freelance writer. He has been editor of several professional financial magazines and is the author of Run It Like a Business, a practice management book for financial planners. He and his wife own a pre-Civil War house in Rockland County, N.Y.
7 Smart Strategies for a Kitchen Remodel
If you’re contemplating a kitchen remodel, you’re also weighing a considerable investment. But a significant portion of the upfront costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 range recouped 76% of the initial project cost at the home’s resale, according to recent data from Remodeling Magazine’s Cost vs. Value Report. To make sure you maximize your return, consider these seven smart kitchen remodeling strategies.
1. Establish your priorities
Simple enough? Not so fast. The National Kitchen and Bath Association (NKBA) recommends spending at least six months planning before beginning the work. That way, you can thoroughly evaluate your priorities and won’t be tempted to change your mind during construction. Contractors often have clauses in their contracts that specify additional costs for amendments to original plans. Planning points to consider include:
- Avoid traffic jams. A walkway through the kitchen should be at least 36 inches wide, according to the NKBA. Work aisles for one cook should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
- Consider children. Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the heights recommended by the NKBA—3 inches below the shoulder of the principle user but not more than 54 inches from the floor.
- Access to the outside. If you want to easily reach entertaining areas, such as a deck or a patio, factor a new exterior door into your plans.
Because planning a kitchen is complex, consider hiring a professional designer. A pro can help make style decisions and foresee potential problems, so you can avoid costly mistakes. In addition, a pro makes sure contractors and installers are sequenced properly so that workflow is cost-effective. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.
2. Keep the same footprint
No matter the size and scope of your planned kitchen, you can save major expense by not rearranging walls and by locating any new plumbing fixtures near existing plumbing pipes. Not only will you save on demolition and reconstruction, you’ll greatly reduce the amount of dust and debris your project generates.
3. Match appliances to your skill level
A six-burner commercial-grade range and luxury-brand refrigerator might make eye-catching centerpieces, but be sure they fit your lifestyle, says Molly Erin McCabe, owner of A Kitchen That Works design firm in Bainbridge Island, Wash. “It’s probably the part of a kitchen project where people tend to overspend the most.”
The high price is only worth the investment if you’re an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, like www.ePinions.com and www.amazon.com, and resources such as Consumer Reports.
4. Create a well-designed lighting scheme
Some guidelines:
• Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate clean-up and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.
• Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Consider dimmer switches with ambient lighting to control intensity and mood.
5. Focus on durability
“People are putting more emphasis on functionality and durability in the kitchen,” says McCabe. That may mean resisting bargain prices and focusing on products that combine low-maintenance with long warranty periods. “Solid-surface countertops [Corian, Silestone] are a perfect example,” adds McCabe. “They may cost a little more, but they’re going to look as good in 10 years as they did the day they were installed.”
If you’re not planning to stay in your house that long, products with substantial warranties can become a selling point. “Individual upgrades don’t necessarily give you a 100% return,” says Frank Gregoire, a real estate appraiser in St. Petersburg, Fla. “But they can give you an edge when it comes time to market your home for sale” if other for-sale homes have similar features.
6. Add storage, not space
To add storage without bumping out walls:
• Specify upper cabinets that reach the ceiling. They may cost a bit more, but you’ll gain valuable storage space. In addition, you won’t have to worry about dusting the tops.
• Hang it up. Install small shelving units on unused wall areas, and add narrow spice racks and shelves on the insides of cabinet doors. Use a ceiling-mounted pot rack to keep bulkier pots and pans from cluttering cabinets. Add hooks to the backs of closet doors for aprons, brooms, and mops.
7. Communicate effectively—and often
Having a good rapport with your project manager or construction team is essential for staying on budget. “Poor communication is a leading cause of kitchen projects going sour,” says McCabe. To keep the sweetness in your project:
- Drop by the project during work hours as often as possible. Your presence assures subcontractors and other workers of your commitment to getting good results.
- Establish a communication routine. Hang a message board on-site where you and the project manager can leave each other daily communiques. Give your email address and cell phone number to subs and team leaders.
- Set house rules. Be clear about smoking, boom box noise levels, which bathroom is available, and where workers should park their vehicles.
Consumers spend more money on kitchen remodeling than any other home improvement project, according to the Home Improvement Research Institute, and with good reason. They’re the hub of home life, and a source of pride. With a little strategizing, you can ensure your new kitchen gives you years of satisfaction.
John Riha has written six books on home improvement and hundreds of articles on home-related topics. He’s been a residential builder, the editorial director of the Black & Decker Home Improvement Library, and the executive editor of Better Homes and Gardens magazine. His standard 1968 suburban house has been an ongoing source of maintenance experience.
Do you have polybutylene pipes in your home?
Polybutylene is a type of plastic resin that was widely used in the manufacture of water supply piping from 1978 until 1995. During that time polybutylene pipes were often considered the pipes of the future because they were easy to install and cost less than other materials such as traditional copper piping. Polybutylene piping systems were used both for underground water mains and for interior water distribution. Most probably, polybutylene piping was installed in about one in every four or five homes built during the years in which the pipe was manufactured.
Does your home have polybutylene?
You should probably contact an expert or have a home inspection if your home was constructed from 1978 to 1995.
It’s easy to see if you have copper pipes, but it might not be obvious if you have polybutylene pipes as opposed to PVC (polyvinyl-chloride). In exterior uses polybutylene underground water mains are usually blue, but may be gray or black. Your water main near the shutoff valve is attached to the end of the water main. Or, you can check the pipes at the water meter on the city street, near the city water main. Experts suggest checking both ends of the pipe because there are cases where copper pipe enters the home, and poly pipe is at the water meter. This indicates that both pipes were used and connected somewhere underground.
Inside your home you can find polybutylene near the water heater, running across the ceiling in unfinished basements, and coming out of the walls to feed sinks and toilets. Warning: In some regions of the country plumbers used copper “stub outs” where the pipe exits a wall to feed a fixture, so seeing copper here does not mean that you do not have poly. If this all sounds a little confusing, contact an expert.
Will the Pipes Fail?
Steven Reiber, HDR Engineering, American Water Works Association Research Foundation writes, “A series of reports have suggested that increased use of choloramines accelerates corrosion and degradation of some metals and elastomers common to distribution plumbing and appurtenances. With regard to elastomers, the study showed that with few exceptions, solutions of chloramines (either monochloramine or dichloramine) produced greater material swelling, deeper and more dense surface cracking, a more rapid loss of elasticity, and greater loss of tensile strength than equivalent concentrations of free chlorine.”
Throughout the 1980′s lawsuits were filed complaining of allegedly defective manufacturing and defective installation causing hundreds of millions of dollars in damages. Although the manufacturers have never admitted that poly is defective, they have agreed to fund the Class Action settlement with an initial and minimum amount of $950 million. You’ll have to contact the appropriate settlement claim company to find out if you qualify under this settlement.
The truth is that the scientific evidence of failures is a little shaky. Some people believe that oxidants in the public water supply, such as chlorine, react with the polybutylene piping and acetal fittings causing them to scale and flake and become brittle. If this is true, this causes micro-fractures. Micro-fractures reduce the basic structural integrity of the system. Thus, the pipes are at risk of becoming weak and may fail without warning causing damage to the building structure and personal property. On the other hand, some believe that other factors may also contribute to the failure of polybutylene systems, such as improper installation, but it is virtually impossible to detect installation problems throughout an entire system. But in the end it’s about your tolerance for risk. If you have polybutylene pipes, you owe it to yourself to have nothing less than a risk assessment.
