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Chapter 84: Construction concepts 555

After reading this chapter, you will be able to:

• understand the regulations controlling the construction of residential and commercial properties in California;

• be conversant in basic construction and architectural concepts; and

• discuss how to market energy efficient property.

Learning Objectives

Construction concepts

Chapter

Construction of residential and commercial buildings is regulated by the state of California through building codes.

The State Housing Law outlines the construction requirements and standards for all buildings in California. The Housing Law dictates the construction and occupancy of dwellings, including:

• single family residences (SFRs);

• apartments;

• hotels; and

• motels.

The Department of Housing and Community Development (HCD) (www.hcd.ca.gov) is responsible for adopting administrative regulations to carry out the provisions of the Housing Law. The HCD establishes building standards and codes, called the California Building Standards Code.1

1 24 Code of Federal Regulations §3280 et seq.

building inspectors

contractor

radon gas

rafters Key Terms

Building regulations

556 Real Estate Principles, Second Edition

Local governments can amend building codes to meet the particular needs of its community. Local amendments are typically made based on local climactic, geological or topographical conditions. Though amended, local building codes need to comply with state regulations.

Building codes are enforced by building inspectors at the local level. Prior to beginning construction, a building permit is obtained from the local building department. Once complete, a building needs to pass inspection and receive a certificate of occupancy before allowing occupancy. The California Department of Public Health may stop the construction of a property if its water supply, sewage or drainage system is impaired.

Standards for the construction of mobilehomes are governed by the Department of Housing and Urban Development (HUD) in Title 24 of the Code of Federal Regulations.2

A contractor is anyone who constructs, alters, repairs, improves or demolishes any building, road, project, development or improvement.3

A contractor is to be licensed by the California Department of Consumer Affairs Contractors State Licensing Board (www.cslb.ca.gov). They also need to post a bond or cash deposit. Contracting without a license is a misdemeanor, unless exempt from licensing requirements.4

Exemptions from the contractor’s licensing law include:

• any work performed, including labor and materials, for less than $500;5

• any work performed by the owner of the property;6

• any work performed by a public utility;7

• oil and gas operations;8 and

• work performed for agricultural purposes.

There are three types of contractor licenses:

• general engineering;

• general building; or

• specialty.

A general engineering contractor specializes in engineering, such as irrigation and drainage, flood control, streets and roads and bridges.9

A general building contractor specializes in the construction of any structure designed for occupation by people, animals or personal property.10

2 24 CFR §3280 et seq.

3 Business and Professions Code §7026

4 Bus & P C §7028(a)

5 Bus & P C §7048

6 Bus & P C §7044

7 Bus & P C §7042

8 Bus & P C §7043

9 Bus & P C §7056

10 Bus & P C §7057

building inspectors Individuals employed by municipalities to ensure properties comply with local building codes, ordinances, zoning regulations and contract specifications.

Role of a contractor

contractor Anyone who constructs, alters, repairs, improves or demolishes any building, road, project, development or improvement.

Chapter 84: Construction concepts 557

A specialty contractor focuses on one particular trade or craft, such as servicing fire extinguisher systems, laying carpet or linoleum, or preparing roadway construction zones.11

Contractors may hold all three types of licenses concurrently.12

A contractor’s license may be suspended or revoked if the contractor:

• violates safety or building regulations;13

• breaches the construction contract in a material respect;14

• fails to follow the plans or specifications;15

• abandons an incomplete project;16 or

• diverts funds received for the completion for a specific project or fails to substantially account for the use of the funds.17

Rafters form the shape of a roof. Sheathing, made of plywood or a wood product called oriented strand board (OSB), is placed on top of the rafters, which serves as a base for the finishing material. The finishing material, such as composition roofing, shingles, wood shakes, slate or tile, is layered over the rafters and sheathing, forming the roof. Where the rafters rise to meet the ridge board at the apex of the roof is known as the ridge.

Sheet metal called flashing is placed around the openings in the roof for vents and chimneys. It is also placed along the edges of the roof. A flat roof, most commonly used on commercial properties, is covered with a protective layer, such as felt, and coated with tar and gravel. This is commonly known as a traditional built-up hot-mop roof.

An alternative used method of finishing a roof is called torch-down roofing. Rolls of protective layering made of rubberized asphalt are unrolled over the surface of a roof then heated with a blowtorch. The heat melts the under layer of asphalt, binding it to the surface of the roof.

The portion of the roof that extends over the exterior wall of the house is called an eave. A gutter runs along the eave to catch and direct rain runoff through the downspout.

The following are types of roofs found on homes:

• single dormers;

• shed dormer or dustpan;

• gambrel;

• gable;

• mansard;

11 Bus & P C §7058

12 Bus & P C §7059

13 Bus & P C §7110

14 Bus & P C §7109

15 Bus & P C §7109

16 Bus & P C §7107

17 Bus & P C §7108

Roofing components

rafters Wood beams on which sheathing is placed. Together, these form the shape of a roof.

558 Real Estate Principles, Second Edition

• hip;

• pyramid; or

• flat. [See Figure 1]

The placement of a house upon the lot is referred to as its orientation. Orientation is the key determinant of a property’s sun exposure. The advantages and disadvantages of a particular orientation will vary depending on geography.

The floor plan of a house refers to how its internal space is arranged and allocated. An advantageous floor plan allows easy mobility and circulation through the improvements, as well as convenient access to living areas, shared rooms and restrooms.

Some homes are built upon a foundation. The foundation walls, anchored by footings, are supports typically made of formed concrete, concrete block or masonry on which woodframe houses rest. In some older homes, the foundation walls are made of river rock or stone.

Unreinforced masonry walls used for structural purposes are earthquake hazards. Unreinforced masonry walls need to be disclosed by the seller by providing the buyer with a copy of the The Homeowner’s Guide to Earthquake Safety for pre-1975 residential or commercial buildings.18 [See RPI Forms 315-1 and 316-2; see Figure 2, excerpt from RPI Form 316-1]

18 Government Code §8875.6

Construction basics

There are numerous architectural styles found in California. The different architectural styles include:

• colonial, also called Cape Cod, traditionally featuring wood siding and shutters with a steep wood-shingled roof;

• Dutch colonial, traditionally featuring a gambrel roof and dormer windows;

• Victorian, traditionally multiple stories and featuring ornate wood external decorations and high ceilings;

• town house, traditionally located in more densely packed urban areas. Town houses share a common wall with the neighboring property;

• English Tudor, traditionally featuring timber framing and a steep, gable roof;

• French provincial, traditionally multiple stories and featuring a hip roof with brick exterior;

• Spanish, traditionally one story with a light colored stucco exterior and featuring an orange or tan tile roof;

• ranch, traditionally one story with a wood or masonry exterior and an attached garage; and

• contemporary, traditionally constructed recently and featuring an open floor plan and minimal ornamentation.

Architectural styles

Chapter 84: Construction concepts 559

Figure 1

Images of roof styles

APPRAISAL AND VALUATION 397

PYRAMID

SINGLE DORMERS SHED DORMER, or DUSTPAN

GABLE

HIP

FLAT

MANSARD

GAMBREL

ROOF TYPES

Building Quality One of the most important reasons for inspecting a property is to determine its quality of construction and condition. The appraiser must be knowledgeable as to structural details of buildings. All exposed portions of a building should be closely inspected to ascertain the materials used, the present condition, and the type and quality of construction, which may be classified as follows:

A. Low quality. 1. Competitive low cost house which does not exceed the minimum building codes.

B. Fair quality. 1. Plain and inexpensive finishes on both interior and exterior. 2. Cheap quality finish hardware, lighting fixtures, and heating. 3. Generally erected in areas of low purchasing power. 4. Typically, stucco exterior, concrete slab floor, composition roof.

APPRAISAL AND VALUATION 397

PYRAMID

SINGLE DORMERS SHED DORMER, or DUSTPAN

GABLE

HIP

FLAT

MANSARD

GAMBREL

ROOF TYPES

A. Low quality. 1. Competitive low cost house which does not exceed the minimum building codes.

APPRAISAL AND VALUATION 397

PYRAMID

SINGLE DORMERS SHED DORMER, or DUSTPAN

GABLE

HIP

FLAT

MANSARD

GAMBREL

ROOF TYPES

A. Low quality. 1. Competitive low cost house which does not exceed the minimum building codes.

APPRAISAL AND VALUATION 397

PYRAMID

SINGLE DORMERS SHED DORMER, or DUSTPAN

GABLE

HIP

FLAT

MANSARD

GAMBREL

ROOF TYPES

A. Low quality. 1. Competitive low cost house which does not exceed the minimum building codes.

APPRAISAL AND VALUATION 397

PYRAMID

SINGLE DORMERS SHED DORMER, or DUSTPAN

GABLE

HIP

FLAT

MANSARD

GAMBREL

ROOF TYPES

A. Low quality. 1. Competitive low cost house which does not exceed the minimum building codes.

APPRAISAL AND VALUATION 397

PYRAMID

SINGLE DORMERS SHED DORMER, or DUSTPAN

GABLE

HIP

FLAT

MANSARD

GAMBREL

ROOF TYPES

A. Low quality. 1. Competitive low cost house which does not exceed the minimum building codes.

APPRAISAL AND VALUATION 397

PYRAMID

SINGLE DORMERS SHED DORMER, or DUSTPAN

GABLE

HIP

FLAT

MANSARD

GAMBREL

ROOF TYPES

A. Low quality. 1. Competitive low cost house which does not exceed the minimum building codes.

APPRAISAL AND VALUATION 397

PYRAMID

SINGLE DORMERS SHED DORMER, or DUSTPAN

GABLE

HIP

FLAT

MANSARD

GAMBREL

ROOF TYPES

A. Low quality. 1. Competitive low cost house which does not exceed the minimum building codes.

Single Dormers

Gambrel

Mansard

Pyramid Flat

Hip

Gable

Shed Dormer, or Dustpan

Images courtesy of the California Bureau of Real Estate (CalBRE) and featured in the CalBRE’s Reference Book: Information Relating to Real Estate Practice, Licensing and Examinations.

After the construction site is excavated, the concrete foundation walls are poured into wood forms. Once the concrete has dried, also referred to as cured, the wood forms are removed and dirt backfill is packed against the walls. Placed directly on top of the foundation wall is the mud sill. Wood beams on which the floor of the house rests are called girders and joists.

A crawl space is sometimes left under a home to provide protection against termites and pests and provide a space for ventilation.

Radon gas is a naturally occurring gas resulting from the erosion of uranium in soil. Radon gas is harmless in well ventilated areas but can accumulate in confined areas, such as crawl spaces and basements, posing a health risk to occupants. [See Figure 2, excerpt from RPI Form 316-1]

Other properties are built on a concrete slab and anchored by footings. Properties built on a slab are not elevated upon foundation walls, nor do they have a crawl space.

radon gas A naturally occurring gas which accumulates in confined areas at ground level and poses a health risk to occupants.

560 Real Estate Principles, Second Edition

Figure 2

Excerpt from Form 316-1

Residential Environmental Hazards Disclosure Booklet for Buyers

Once the foundation walls or slab have been laid, the frame of the house is erected. The frame is the skeleton of the house to which interior and exterior walls are attached. Vertical supports within the frame are called studs.

The standard spacing for studs is 16” on center (measured from the center of each stud) for load-bearing walls. Some non-load-bearing interior walls, also known as partition walls, allow a spacing of 24” on center. Fire stops are horizontal pieces of material placed between the studs to block air drafts.

Chapter 84: Construction concepts 561

The exterior walls consist of sheathing, which may come in the form of structural plywood or OSB. Outside of the sheathing, the siding is placed. Siding can be wood, brick, stone, masonry, aluminum, stucco, cement board or other materials.

The California Energy Commission designed and implemented the California Home Energy Rating System (HERS) program to include a uniform rating scheme for the systematic delivery of home energy ratings to homeowners. The rating is assigned by a certified Rater.

The HERS Rating Index covers:

• space heating/cooling;

• service hot water;

• lighting in conditioned space;

• exterior lighting mounted on buildings or unconditioned garage;

• electric/gas appliances; and

• other interior electric and gas uses specified in the HERS Technical Manual.

The Rater then uses all of these factors to give the home a California Whole- House Home Energy Rating (energy rating).

The energy rating is a numerical representation taken from the Time Dependent Valued (TDV) energy scale. The TDV numerical rating represents the level of energy consumed, produced and delivered to the home. The TDV is calculated by the Rater using an hourly energy consumption simulation approved by the Energy Commission.

As part of the Rater’s assessment, the Rater provides energy efficient improvement recommendations for the home they inspect. The Rater will list the cost-effective improvements he believes will upgrade the energy- efficiency of the home. A low TDV energy score can be used by a seller and their agent to market the property to budget conscious buyers.

Home energy information

562 Real Estate Principles, Second Edition

Quiz 15 Covering Chapters 79-85 is located on page 620.

Construction of California residential and commercial buildings is regulated through building codes. The Department of Housing and Community Development (HCD) is responsible for carrying out the provisions of the California Building Standards Code. Building codes are enforced by building inspectors.

A contractor is anyone who constructs, repairs or demolishes a building or development project. There are three types of contractor licenses: general engineering, general building, or specialty.

The placement of a house upon the lot is referred to as its orientation. The floor plan of a house refers to how its internal space is arranged and allocated.

The California Home Energy Rating System (HERS) program codified a uniform rating scheme for the systematic delivery of home energy ratings to homeowners. The rating represents the level of energy consumed, produced and delivered to the home.

building inspectors .................................................................... pg. 556 contractor ..................................................................................... pg. 556 radon gas ....................................................................................... pg. 559 rafters ............................................................................................. pg. 557

Chapter 84 Summary

Chapter 84 Key Terms

Chapter 85: Blue prints for construction 563

After reading this chapter, you will be able to:

• understand the function of public controls to guide the uniform growth of a municipality; and

• identify the government actions necessary to promote growth in the construction and real estate industries.

Learning Objectives

Blue prints for construction

Chapter

New construction is built in conformance with public controls.

Without public controls, growth becomes erratic. Inconsistent growth creates the potential for societal problems, such as:

• poor access to public areas;

• inadequate streets and parking;

• inconsistent architectural design and utility;

• poor air quality; and

• insufficient public services, such as police and fire protection.

Further, governmental controls ensure property values are protected and not undermined by unchecked growth or deterioration.

Public controls are enacted through:

• state codes and regulations;

• zoning ordinances;

Controlled growth

public controls State laws, zoning regulations, building codes and local plans designed to protect property values and control growth.

general plan

granny flat

public controls Key Terms

564 Real Estate Principles, Second Edition

• local general and master plans; and

• building codes.

Every city and county has a planning commission, which is advised by the local agency planning department. The planning commission is tasked with reviewing and approving a general plan governing the growth of their municipality.1

A general plan sets forth acceptable land uses within a jurisdiction, including a statement of development policies on:

• land use;

• circulation patterns;

• housing;

• conservation;

• open space;

• noise; and

• safety.2

The planning commission maintains the general plan by making recommendations on:

• zoning proposals;

• subdivision regulation;

• use permits;

• variances; and

• other development permits related to general plan goals and policies.

Subdivision ordinances are the primary method of implementing the general plan. Local agencies may not approve a tentative map for a project when the planning commission finds the subdivision is inconsistent with the adopted general plan or any specific plan.3

A city or county may also control the physical aspects of a subdivision. A subdivider prepares a map of a proposed common interest development (CID) for approval by the local planning commission prior to commencing construction.4

The Subdivision Map Act establishes the conditions for approval of a subdivision map. The Act also provides the planning commission the authority to regulate the design and physical improvements installed in a CID.5

1 Calif. Government Code §65000 et seq.

2 Gov C §65302

3 Gov C §66473.5

4 Gov C §66410 et seq.

5 Gov C §66411

general plan Development policies for acceptable land uses within a jurisdiction.

Implementation of the general

plan

Chapter 85: Blue prints for construction 565

Further, the Subdivided Lands Act authorizes the Real Estate Commissioner to administer the Subdivided Lands Law. The Subdivided Lands Law protects buyers from misrepresentation or fraud in the initial sale of a subdivided property of 160 acres or less.6

A subdivision, which includes land, CIDs and timeshare projects, cannot be sold in California until the Commissioner issues a public report to be made available to buyers. The public report references critical information about a project and disclosures.7

As the demand for any type of improved property increases, prices initially begin to move upward faster than the rate of consumer inflation. To keep prices from ballooning, local governments need to permit the higher and better use of existing subdivided parcels. With proper zoning, construction can take place to meet demand without delay. Delayed housing starts drive prices upward artificially on existing housing when the population is growing.

To accomplish these goals efficiently, cities need to implement zoning that allows greater height for buildings and higher urban density. Smarter zoning keeps down the need for new infrastructure to connect newly developed properties on peripheral unsubdivided lands.

Successful zoning ordinances keep demand for government services at a consistent level. Zoning that facilitates economical projects allows builders to demolish obsolete and inefficient inter-city structures. These obsolete structures are replaced with high density housing on existing blocks and parcels within city centers. Thus, the need to extend infrastructure — roads and utilities — is avoided.

Local governments’ first responsibility for housing is to revisit current limits on height, density and onsite parking. These limitations need to be modified with an eye toward the best use of inner city parcels, many of which are occupied by old, obsolete single family residences (SFRs).

Intelligent zoning will allow builders to meet the needs of future homeowners and renters. These new occupants will look for jobs in the city’s core financial, governmental, educational, medical and other high-end service trades, the growth industries in California’s future.

The state legislature has already established a pattern of increasing density. It has accomplished this by adding low-income units to the permitted use, including authorization to construct granny flats, also called casitas, for SFRs everywhere.8

City councils can induce building activity by reducing permit costs for the construction of high-density multi-family units on center-city parcels.

6 Calif. Business and Professions Code §11000 et seq.

7 Bus & P C §11018

8 Gov. C §65852.2

The need for government action

granny flat A separate, self- contained additional dwelling on a property zoned to accommodate only one unit.

Centralized growth

566 Real Estate Principles, Second Edition

All new construction conforms with public controls designed to regulate growth and protect property values. Public controls come in the form of state laws, zoning regulations, local and general master plans, and building codes. Further, every city and county has a planning commission and department tasked with developing and maintaining the general plan governing the growth of a municipality.

Thus, a region’s construction environment is a product of local zoning regulations. To ensure an efficient use of land, local governments need to loosen urban density and building height restrictions.

Chapter 85 Summary

Construction on central parcels is ultimately less costly for the city (and builders) as infrastructure, such as roads, sewers and utilities, are not required to be added.

Such policies encourage builders not to jump outward from the urban center into remote unsubdivided lands. Instead, they are an intelligent way to make cities more favorably centralized. They also have the added advantage of delivering apartments and condos for urban-dwellers convenient to where the higher skilled jobs are located.

Local governments are motivated by needs other than those of homebuyers or the construction industry. Among their other concerns, governments need to always maintain funding from the tax base. One way of ensuring funds is to encourage advantageous and higher valued construction during times of anticipated increases in housing demand, and let the assessment rolls grow.

Such incentives are welcomed by builders. However, the zoning of the past has created suburban sprawl, unimaginative designs and minimal onsite and offsite amenities. These suburban conditions are favorable to no one.

general plan ................................................................................. pg. 564 granny flat .................................................................................... pg. 565 public controls ............................................................................ pg. 563

Chapter 85 Key Terms

Quiz 15 Covering Chapters 79-85 is located on page 620.