May 2015
Spring Parade of Homes Underway BUILD-PAC Celebration – Page 3 Planning Calendar for 2015 – Page 8 New Mortgage Disclosure Rules – Page 10 Stand-Down for Safety – Page 11
Get acquainted with the Artisan builders. See page 6-7 for the first in a series of profiles.
The 53rd annual Spring Parade of Homes is in full swing across the Kansas City metro area. Builders have reported heavy traffic to the 340 homes entered in this year’s parade. Kansas City’s Parade of Homes, the second largest in the nation, is a testament to the pride and commitment of our builders, developers, subcontractors and suppliers to promote the dream of homeownership. After judging was held on April 24 and 25, winning entries in the American Dream Awards contest were announced on April 29. Results of the contest will
appear in the June issue of the Building Business News. The Parade of Homes is always an exciting time for the Kansas City Home Builders Association and this year’s event has been no exception. We extend our appreciation to all builders and developers who make the Parade possible, to the members of the Parade Committee for their leadership, to Rocktops Granite & Stone Fabrication for delivering the Parade Guides and to the Parade Sponsor, Stewart Title. Parade entries from Willis Construction, JFE Construction and Lambie Custom Homes
www.kchba.org | Volume 21, No. 5 | May 2015
Builders Development Corporation Recognized for Projects in Independence
May Calendar May 7 New Member Coffee Thru Spring Parade May 10 of Homes
The Builders Development Corporation (BDC) was recently awarded two W.Z. Hickman Preservation Awards by the City of Independence Heritage Commission. The BDC’s projects at 417 W Farmer Street and 423 N Pleasant Street received “Outstanding Rehabilitation” awards and the home at 718 S Park Avenue was recognized for “Outstanding Preservation.” These awards recognize exemplary efforts by an individual property 423 N. Pleasant After—Bedroom owner or organization in: sustaining the form, integrity and materials of an historic property; restoration of a historic building to an earlier or original appearance; or, rehabilitation of a historic building for reuse through repair, alterations and additions that preserve those portions or features which covey the building’s historical, cultural or ar423 N. Pleasant After—Dining Room looking into living room/front door chitectural significance.
May 14 Sales & Marketing Council Meeting May 14 Associates Council Meeting May 21 Lunch, Learn & Earn Credit Class For more information or to register for any event, go to www.kchba.org or call 816-942-8800
423 N. Pleasant Before—Dining Room
BUILDERS WHO CAN CHOOSE ANY WINDOW DON’T JUST CHOOSE ANY WINDOW.
423 N. Pleasant Before—First Bedroom, looking into living room and dining room
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Builders Development Corporation (BDC) is a Missouri nonprofit corporation formed in 2005 to increase the production of affordable housing, and to revitalize neighborhoods. The BDC partners with members of the Kansas City Home Builders Association; neighborhood residents; governments; existing organizations and funders to form a creative approach to community development and housing for workforce and/or low-income persons, families, and senior citizens.
“ENERGY STAR” is a registered trademark of the U.S. Environmental Protection Agency. “Andersen” and all other marks where denoted are trademarks of Andersen Corporation. © 2015 Andersen Corporation. All rights reserved. MS1501_0052
• Belton, MO 617 N. Scott (816) 331-2211 • Excelsior Springs, MO 24805 NE 69 Hwy (816) 628-6025 • Lee’s Summit, MO 312 SE Main (816) 524-3522
These photos show the before and after of 423 N Pleasant. This beautiful home is available for purchase—contact the BDC for buyer requirements and information.
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May 2015 | Volume 21, No. 5 | www.kchba.org
HBA-PAC Trustees Host a Celebration for BUILD-PAC Contributors
Bob Frost, Marilyn & Kirk Jones and Stan Woodworth
Tom Woods, Harold Phelps and Tom French
HBA members and their guests joined the HBA’s Political Action Committee (HBA-PAC) Trustees on April 8 for an evening of celebration and appreciation for their contributions to BUILD-PAC, the National Association of Home Builder’s Political Action Committee. The celebration was held at the beautiful home of Gayle and Tom French in Bucyrus, Kansas.
Special appreciation to Gayle French (on the left) for her graciousness in sharing her home for the evening, joined here with Janet and Patrick Willis
contributions made to BUILD-PAC will be available for local races. On behalf of the Kansas City home building industry, the KCHBA would like to thank its members for their personal investment and commitment to BUILD-PAC. These donors have pledged to support pro-housing efforts as
The HBA-PAC hosts a BUILD-PAC fundraiser every year to thank KCHBA members for their contributions. BUILDPAC’s mission is to elect pro-housing candidates to Congress who will defend The LaVoys and Hollands enjoying the evening’s hospitality. the home building industry, guard against harmful regulations of mid-April 2015, but we would like to and protect your business. Supporting add more names to this list. Contact the BUILD-PAC also helps increase the HBA to add your name to the honor roll. success of electing candidates at the Alan White Mark Mather state and local level who make housing a Bob Frost Patrick Willis top priority. Bobby Wilson Richard Mather When a local HBA has met the fundBrenner Holland Russ Groshans raising goal established by BUILD-PAC, Harold Phelps Sara Corless a portion of the contributions are Jeff Robinson Stan Woodworth returned to the local PAC for support of Jenni Mann Steven Tolbert state, county and city candidates. The Jon Lambert Thomas French Kansas City HBA has once again met Kirk Jones the annual goal and thus a portion of any
The Gold Key Appreciation evening leads to great discussions with Neal Woodworth, Bruce Rieke and others
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www.kchba.org | Volume 21, No. 5 | May 2015
Stewart Specialty Insurance Services Becomes an Affinity Associate The Home Builders Association of Greater Kansas City is proud to welcome Stewart Specialty Insurance Services as an affinity associate. Stewart Specialty Insurance Services is a subsidiary of Stewart Title Company, offering a variety of personal and commercial insurance products, hazard disclosures, bonds and home warranties. “We are honored to have Stewart Specialty Insurance Services as our new affinity associate,” said Sara Corless, executive vice president, Home Builders Association of Greater Kansas City. “Stewart Specialty Insurance Services works with many highly rated insurance carriers which enable them to provide competitive pricing and quality coverage.”
Stewart Specialty Insurance Services is the proud new insurance and risk management associate for the Home Builders Association of Greater Kansas City.
Stewart Specialty Insurance Services offers builders unique services through their Builder Protection Plus™ program which allows home builders to safely protect their assets. Builder Protection Plus helps to reduce the overall cost of insurance, reduces the risk of damages from a breach of implied warranties, and provides protection from costly law suits. It also manages the risk of claims from homeowners and subcontractors, and provides expanded insurance options for home buyers.
Contact us today and learn more about how you can get increased coverage at lowered premium levels with our Builder Protection Plus™ program. (866) 845-4676 specialtyinsurance@stewart.com stewartspecialtyinsurance.com
Insurance options include builder’s risk, general liability, workers’ compensation, performance/release of lien bonds, and cyber liability. Additional options include structural warranty, health benefits, payroll and human resources solutions, commercial auto, home buyer concierge services, and home insurance options for home buyers.
© 2015 Stewart.
4
Tom Carpentier, President of Stewart Specialty Insurance Services
“I want to personally thank the membership for providing Stewart Specialty Insurance Services the opportunity to be the Home Builders Association of Greater Kansas City’s affinity sponsor for insurance and risk management services,” said Tom Carpentier, president of Stewart Specialty Insurance Services. “We look forward to working with members to help manage their risk and protect their investments.” Stewart Specialty Insurance Services will provide an analysis of members’ personal and business insurance at no charge. To learn more about Stewart Specialty Insurance Services visit www. stewartspecialtyinsurance.com. They can be contacted at 866-845-4676 or specialtyinsurance@stewart.com.
May 2015 | Volume 21, No. 5 | www.kchba.org
New Home Sales: Have You Hugged Your Realtor Today? If you are looking for more new home sales, it’s time you cozied up with your local real estate agents. Most new homes, near 70%, are sold with the assistance of real estate agents, so if you aren’t effectively marketing to them, it’s likely you’re missing out on sales. Often agents either don’t have the tools, or the incentive to bring buyers to your communities. Listed below are ways to keep agents in your area involved and engaged, so that you can maximize sales and profit. 1. Create and stick to a standard commission Real estate agents desire and appreciate a clearly stated commission policy that tells them how and when they will be paid. 2. Employ useful sales tools Print and online materials describing standard home features and community benefits Photographs, virtual tour, videos of model and inventory homes Up-to-date MLS listings Warranty and home maintenance information sheets 3. Make sure you have an easy sales process
Provide showing instructions and lock box location information Create a PDF of community benefits and features Make directions to the community easy to find and accessible 4. Provide education and training Sponsor continuing education classes Host lunch and learn events in your communities 5. Reward your realtors for good work Send gifts to their office when they sell a home
Meredith Oliver spoke at the Greater Kansas City Home Show
Send an email to all of the agents in their office announcing their sale
Sales & Marketing Council: Active in 2015
Recognize sales on social media
With the year not yet half over, the Sales & Marketing Council (SMC) has sponsored several special activities for HBA members and the Council has an equally busy schedule planned for the remaining months.
Provide incentives for repeat sales Provide incentives through contests and special promotions 6. Encourage them to participate in HBA activities Join the KCHBA as an associate member or affiliate member
The 2015 Economic Forecast Breakfast kicked off the year—more than 150 people listened as David Crowe, Chief Economist and Senior Vice President, the National Association of Home Builders, and Chris Kuehl, Co-founder and President, Armada Intelligence spoke about what can be expected in 2015 for the building industry.
Become active in the Sales & Marketing Council Work toward the New Homes Sales Professional designation-class to be held August 5-7, 2015 Adapted from NAHB Now, 4/16/15
5
In February, SMC members and guests gathered at the Ferguson showroom in Lenexa to hear from a panel including Rob Lacio (ReeceNichols), Jeff Ashner (Ashner Construction), Deb DiPonio (ReeceNichols) and Ken Rosberg (Cedar Creek Development) discuss how to navigate new homes sales. This seminar took the mystery out of selling new homes and shared hints to help prepare buyers for a trouble-free buying experience.
The SMC helped open the Greater Kansas City Home Show on March 20 with a sales rally led by Meredith Oliver, a nationally recognized speaker. Meredith spoke about how to sell to today’s digitally driven, socially savvy, internet empowered buyers who hate a sales pitch but crave a relationship. The schedule for upcoming events includes: On-Site Construction 101 – June 11 Certified Sales Professional course – August 5th through 7th On-Site Construction 201 – September (date to be determined) The SMC meets on the second Thursday of each month. Recent guest speakers have included Jared Webb (KC Star) on “Marketing to Millennials” and Erin Schuerman (E.S. Photography) on using digital photos and videos to enhance marketing efforts. Interested in joining this dynamic group? Contact Dawn Allen (dawn@kchba.org) for more information.
www.kchba.org | Volume 21, No. 5 | May 2015
Meet the Artisan Builders
Step Up to Higher Profits.
The Home Builders Association of Greater Kansas City will present the area’s first Artisan Home Tour this fall, September 12-20. This tour will showcase eleven of Kansas City’s finest custom home builders and the unique and impeccable qualities of their one-of-a-kind homes. The tour will be a ticketed activity benefitting the event’s charitable partner, the Ronald McDonald House Charities Kansas City. The KCHBA is proud to partner with Kansas Gas Service, Country Club Bank and the presenting sponsor, Ferguson, for this exciting addition to the KCHBA’s parade of homes family.
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The builders in this year’s tour will be profiled in upcoming issues of the Building Business News, beginning this month with Homes by Chris and Don Julian Builders.
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Chris and Roy Ragland For more than ten years, Homes by Chris has been an award-winning designer/builder in the Kansas City area. This company is owned and operated by Chris and Roy Ragland, a husband and wife team who have built more than 200 homes in the Northland area. This fantastic partnership started years ago at the University of Missouri-Columbia. Chris graduated from UMC in economics, earned an MBA from Rockhurst University, and spent 20 years in corporate project management before joining Roy in the building business. Roy first worked as, and still is, a Realtor, before deciding to form the building company in 2003.
(816) 245-4160 • www.FFBKC.com/builders
With Roy’s experience in real estate sales and Chris’s experience as a manager in the corporate world, they have an attention to detail in their homes that is second to none. They are committed to providing what their clients desire in a dream home, including energy-efficiency, aesthetics, functionality, and design. Clients work directly with Chris and Roy, a very unique opportunity in the building industry.
6
“We are in our homes every day, overseeing the project, making sure things
are done right for the client. We are involved in every step,” notes Chris. “We are a team, offering both the male and female perspective.” Although each of their homes is custom and unique, their signature style is streamlined and fresh, with hints of craftsman details, featuring extensive woodwork and natural stone, marrying the exterior and interior with outdoor living areas. Chris ensures that she writes each family’s story into the walls of their home. Of all the things that can be added to a home, personality is one which especially comes with a well-built home matching a family’s lifestyle. Chris feels strongly that homes should function for the families that live in them. Continued on page 7
May 2015 | Volume 21, No. 5 | www.kchba.org
Don Julian For the past forty years, Don Julian has set a new standard for design, quality and outstanding customer service in the home building industry. His unique architectural designs and innovative, award-winning floor plans have become a Julian trademark in metropolitan Kansas City. Don constructed his first home in Kansas City in 1974 after a promotion to director of engineering at an east coast Fortune 500 company required a move to Kansas City. During his search for a home in the metro area, Don quickly realized that a custom built home was what he wanted for his family. As Don’s interest in construction grew, he decided to make it a full-time business. The engineering approach Don incorporated in his first custom homes also jumpstarted his success and initiated certain trends in the marketplace. His innovative nature reveals itself in such elements as virtual “walls of glass,” which he introduced even before the “light and bright” open floor plans that have become a Kansas City standard. “My passion is design and discovering the latest trends, in addition to incorporating new twists on floor plans,” he explains. Through the firm’s in-house design center, Don draws upon resources of an architectural staff, interior designer, and a fully equipped decorating studio to
Ragland Continued from page 6 Roy also excels in the design side of building a custom home. He especially enjoys helping clients select the perfect lot and visualizing the home that will best sit on that lot. “What I love about this job is completing the home and wowing the customer when you hand them the keys,” said Chris.
Taking the guess work out of building energy efficient homes.
Saving America’s Energy Since 1932 make a client’s experience a truly one stop shop. In the late 1980’s, Don began to focus more on the development side of the business. As further evidence of Julian’s talent to meet the market demands of changing lifestyles, he is credited with the successful development of several upscale communities, such as the prestigious Northland subdivision Riss Lake, as well as Lakewood Oaks, Lakewood Shores, and Tiffany Greens.
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As a tribute to his success, for two consecutive years, Professional Builder magazine listed Don Julian Builders as one of the top 400 builders in the United States. Builder Magazine placed him as one of the top five builders in the top 50 single housing markets in the nation. In addition, Don has won more than 60 industry awards for value, design and craftsmanship. In addition to garnering national attention, Don has won hundreds of awards locally for value, design and craftsmanship in homebuilding excellence. As a matter of fact, he has won more awards than anyone in the history of the Home Builders Association of Kansas City.
ROCKTOPS 7
2015 Networking and Education Calendar
2015 Networking and Education Calendar
2015 Education Sponsor
EVENT
DATE
COST
LOCATION
Spring 2015 Parade of Homes
Saturday, April 25 Sunday, May 10
—
Scattered Homes Tour
Lunch, Learn & Earn Credit: Proper Truss Installation & Common Concerns 2 HRS ABC DW Code Credit
Thursday, May 21 11 am - 1 pm
$50 - MEMBER $100 - NONMEMBER
KC HBA
On-Site Construction 101 TILIA-RESPA-Integrated Disclosure Rule Panel Discussion
Thursday, June 11 10 am - 2 pm Tuesday, June 16 10 am - 11:30 am
$30 - MEMBER $60 - NONMEMBER $20 - MEMBER $40 - NONMEMBER
KC HBA
Golf Tournament
Wednesday, June 17 8 am - 5 pm
$400 - PER TEAM OF 4
Hillcrest Country Club
Lunch, Learn & Earn Credit: Fire Blocking & Draft Stopping 2 HRS CC
Thursday, June 18 11 am - 1 pm
$50 - MEMBER $100 - NONMEMBER
KC HBA
Night at the “K” - Forever Royal
Friday, June 19 Game starts at 7:10 pm
$20 - PER TICKET
Kauffman Stadium
Lunch, Learn & Earn Credit: Work Force Series (4 classes) 2 HRS CC (PER CLASS)
Thursday, July 16
$50 - MEMBER $100 - NONMEMBER
KC HBA
Certified New Home Sales Professional (CSP)
Wed., August 5 Fri., August 7 9 am - 5 pm
$395 - MEMBER $495 - NONMEMBER
KC HBA
Lunch, Learn & Earn Credit 2 HRS CC
Thursday, August 20
$50 - MEMBER $100 - NONMEMBER
KC HBA
Artisan Homes Tour
Sat., September 12 Sun., September 20
—
Scattered Homes Tour
Fall 2015 Parade of Homes
Sat., October 3 Sun., October 18
—
Scattered Homes Tour
HBA Annual Clay Shoot
Friday, October 16
TBD
Powder Creek 8601 Monticello Rd. Lenexa, KS
Lunch, Learn & Earn Credit 2 HRS CC
Thursday, November 19
$50 - MEMBER $100 - NONMEMBER
KC HBA
Inaugural Dinner
Wednesday, December 2 6 pm - 11 pm
TBD
Grand Street Café 4740 Grand Ave, KC MO
Art of Framing 8 HRS CC
Thursday, December 10
$125 - MEMBER $195 - NONMEMBER
KC HBA
Wall Bracing 4 HRS CC
Friday, December 11
TBD
KC HBA
MAY
Thank you to
JUNE 2015 Education Sponsor
LOCATION Click this logo at
COST —
Scattered Homes Tour www.kchba.org
$50 - MEMBER 100 - NONMEMBER
KC HBA to login to your account
$30 - MEMBER 60 - NONMEMBER $20 - MEMBER 40 - NONMEMBER
KC HBA
00 - PER TEAM OF 4
Hillcrest Country Club
$50 - MEMBER 100 - NONMEMBER
KC HBA
$20 - PER TICKET
Kauffman Stadium
JULY
TBD
$50 - MEMBER 100 - NONMEMBER
AUGUST
SEPTEMBER
KC HBA
OCTOBER
$395 - MEMBER 495 - NONMEMBER
KC HBA
$50 - MEMBER 100 - NONMEMBER
KC HBA
—
Scattered Homes Tour
Online Resources for HBA Members!
NOVEMBER
Scattered Homes Tour
—
Powder Creek
TBD
$50 - MEMBER 100 - NONMEMBER TBD
Monticello Rd. Call8601 today 816-942-8800, Lenexa, KS or emailKCgina@kchba.org or HBA scorless@kchba.org Grand Street Café
DECEMBER
4740 Grand Ave, KC MO
$125 - MEMBER 195 - NONMEMBER
KC HBA
TBD
KC HBA
www.kchba.org | Volume 21, No. 5 | May 2015
TBD
For more information or to register for an event contact Andrew, andrew@kchba.org or 816-942-8800.
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kchba.org or 816-942-8800.
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May 2015 | Volume 21, No. 5 | www.kchba.org
Join the #1 homebuilder in the Kansas City area as a Residential Construction Project Manager and receive: Health & Life Insurance | Retirement Program with Company Match Bonus & Profit Sharing | Charitable Contribution Match Company Vehicle | Market Competitive Compensation Volunteer Day | Generous Vacation Package & Personal Days
Monthly Lunch, Learn & Earn Classes Kick-off The KCHBA’s monthly opportunity to earn contractor code credit began with a class on window installation. Ten participants learned the correct methods to prevent window failure from instructor Dave Utterback. The May 21st class will focus on proper roof truss installation. The KCHBA has scheduled monthly sessions which qualify for two hours of
code credit during the remainder of the year. Additional classes, especially toward year-end, will offer extra hours to help contractors meet requirements for license renewal before December 31st. Educational events for 2015 are underwritten by the generous sponsorship of Bovard Insurance Group.
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9
www.kchba.org | Volume 21, No. 5 | May 2015
New Home Closing Rules Take Effect August 1
“The Little Agency
That Roars!”
Fasone & Partners
Advertising Marketing PR
Celebrating 40 years of Results!
Make your business ROAR!
Be Ready a Week Before Closing
KCHBA will offer panel discussion in June
These new rules are intended to streamline the loan application process and make it easier for consumers to understand by clearly spelling out the most relevant details all on one page – the interest rate of the mortgage loan, the amount of the monthly payments and a listing of all the closing costs.
The KCHBA will host a panel discussion on June 16th to help members be prepared to navigate these changes with the least amount of disruption to the sales and closing process. The program will begin at 10 am and includes lunch. Please contact the HBA at 816-942-8800 to register for this informative event.
Contact Karol Angotti or Michal Fasone 816.753.7272 karol@fasonepartners.com or mj@fasonepartners.com
FasonePartners.com
Partners with HBA Advertising | Marketing | Digital since | PR
The Consumer Financial Protection Bureau will institute new rules August 1 regarding disclosures under the Truth in Lending Act and Real Estate Settlement Procedures Act (TILA-RESPA) that will affect all home builders, particularly those with a real estate lending arm.
2010
Under the new procedures, four documents will be merged into two. The Good Faith Estimate and Truth in Lending disclosures will be eliminated and combined into a new single Loan Estimate form, or “LE.” In addition, the final Truth in Lending Disclosure and HUD-1 Settlement Statement are being replaced by the Closing Disclosure, or “CD.” What does this mean? First, the Loan Estimate must be delivered to the prospective buyer no later than three business days after receiving the application. Currently, the HUD-1 Settlement Statement can be presented to the buyer on the day of closing and any changes to the statement can take place during the loan closing. Under the new rule, the biggest change is that the Closing Disclosure must be provided to the consumer a full three days prior to the closing, and if there are changes during that 72-hour period, the closing could be delayed. 10
To prevent any unwanted closing delays, a good rule of thumb is to have all the paperwork in order a week before the scheduled closing date. So if you want to close August 10, make sure everything is ready August 3.
For those applying for adjustable rate mortgages, the documents will explain how their interest rate and future monthly payments could change based on certain factors. NAHB was actively involved during the rulemaking process, submitting comment letters both individually and with coalition partners urging the CFPB to ensure that any changes that would make it easier for consumers to understand and comply with the settlement process would not place any undue burdens on builders, lenders and other housing professionals. From NAHBNow, 4/22/25
2015 Edu
EVENT
DATE
COST
Spring 2015 Parade of Homes
Saturday, April 25 Sunday, May 10
—
Lunch, Learn & Earn Credit: Proper Truss Installation & Common Concerns 2 HRS ABC DW Code Credit
Thursday, May 21 11 am - 1 pm
$50 - MEMBER $100 - NONMEMBER
KC
On-Site Construction 101 TILIA-RESPA-Integrated Disclosure Rule Panel Discussion
Thursday, June 11 10 am - 2 pm Tuesday, June 16 10 am - 11:30 am
$30 - MEMBER $60 - NONMEMBER $20 - MEMBER $40 - NONMEMBER
KC
Golf Tournament
Wednesday, June 17 8 am - 5 pm
$400 - PER TEAM OF 4
Lunch, Learn & Earn Credit: Fire Blocking & Draft Stopping 2 HRS CC
Thursday, June 18 11 am - 1 pm
$50 - MEMBER $100 - NONMEMBER
Night at the “K” - Forever Royal
Friday, June 19 Game starts at 7:10 pm
$20 - PER TICKET
Lunch, Learn & Earn Credit: Work Force Series (4 classes) 2 HRS CC (PER CLASS)
Thursday, July 16
$50 - MEMBER $100 - NONMEMBER
KC
Certified New Home Sales Professional (CSP)
Wed., August 5 Fri., August 7 9 am - 5 pm
$395 - MEMBER $495 - NONMEMBER
KC
Lunch, Learn & Earn Credit 2 HRS CC
Thursday, August 20
$50 - MEMBER $100 - NONMEMBER
KC
Artisan Homes Tour
Sat., September 12 Sun., September 20
—
Scattered
Fall 2015 Parade of Homes
Sat., October 3 Sun., October 18
—
Scattered
HBA Annual Clay Shoot
Friday, October 16
TBD
Lunch, Learn & Earn Credit 2 HRS CC
Thursday, November 19
$50 - MEMBER $100 - NONMEMBER
Inaugural Dinner
Wednesday, December 2 6 pm - 11 pm
TBD
Art of Framing 8 HRS CC
Thursday, December 10
$125 - MEMBER $195 - NONMEMBER
KC
Wall Bracing 4 HRS CC
Friday, December 11
TBD
KC
May 2015 | Volume 21, No. 5 | www.kchba.org MAY
JUNE
JULY
Stand-Down for Fall Safety! Every day in this country, construction workers fall. One wrong step and they’re tumbling down a steeply pitched roof, sliding or dropping off an unstable ladder, or left hanging from a scaffold. The difference between an unexpected stumble and tragedy is simple: fall protection. Falls are the leading cause of death in the construction industry, as hundreds of workers die each year and thousands more suffer catastrophic, debilitating injuries. Yet, lack of proper fall protection remains the most frequently cited violation by the U.S. Department of Labor’s Occupational Safety and Health Administration. To recognize this often fatal hazard, tens of thousands of employers and more than a million workers across the country joined OSHA in 2014 for a weeklong Fall Safety Stand-Down, the largest occupational safety event ever held. OSHA hopes to triple these numbers during this year’s Fall Safety Stand-Down from May 4-15, 2015.
AUGUST
“With the economy on the rebound SEPTEMBER and housing starts on the rise, now is the time to for all of us to renew our OCTOBER commitment to sending workers home safe every night,” said Secretary of NOVEMBER Labor Thomas E. Perez. “Last year’s Stand-Down showed us what employers DECEMBER and workers sharing that commitment can accomplish. Responsible employers understand that safety is not a luxury — it is a necessity.” KCHBA members that face fall hazards on the job are encouraged to participate in this year’s Stand-Down. The newly launched website (www.osha.gov/StopFallsStandDown) provides details on: how to conduct a Stand-Down; receive a certificate of participation; and access free education and training resources, fact sheets and other outreach materials. It will also include a list of stand-down events free and open to the public, as soon as they become available.
Tom Brick, EPA Region 7, will speak on July 21 to interested KCHBA members regarding this new rule, inspections and record keeping. The presentation will also include a question and answer session. Mr. Brick will speak at 11:30 am, during the monthly board lunch. To register for this program, please contact Tricia (tricia@kchba.org or phone 816-942-8800).
Scattered
Hillcrest
KC
Kauffm
Powd 8601 Mo Len
KC
Grand 4740 Gran
For more information or to register for an event contact Andrew, andrew@kchba.org or 816-942-8800.
Bank of Blue Valley has supported the Home Building Industry for over 23 years. We understand the value of COMMUNITY, PHILANTHROPY, and ENTREPRENEURSHIP.
EPA Official to Speak about New Lead Paint Rules The Environmental Protection Agency (EPA) Administrator has signed a final rule extending certain renovator certifications under the Lead Renovation, Repair and Painting (RRP) program. EPA estimates that the rule, which went into effect the same day it was published in the Federal Register (April 16), will affect up to 380,000 certified renovators.
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www.kchba.org | Volume 21, No. 5 | May 2015
Member Anniversaries
Pride in everything we do – even in the work you don’t see.
1973 Rensen House of Lights 1975 Century Plumbing Company 1978 Complete Home Concepts, Inc. Henges Insulation and Fireplaces 1979 Holthaus Building, Inc. 1981 George E Fern Company 1983 Bickimer Construction, Inc. Gene Fritzel Construction Company, Inc. 1984 Schlagel & Associates, P.A. 1986 Geiger Ready Mix Co., Inc. 1987 Reece & Nichols 1989 Extraordinary Homes 1992 Cumberland Trim size: Properties, Inc. 1994 4.75 x 4.75 Hunt Midwest Real Estate Development, Print ad Inc. Uncoated 1998 Pollard & Associates 1999 Freeman Custom Homes 2001 K C Pumpman, LLC New Homes Journal 2003 Cecil & Ray Homes, Inc. 2005 Guier Fence Company, Inc. Premiere Marketing 2009 Harrison Baker Insulation, LLC Homoly Construction, Inc. Premier Foundations, LLC Pyramid Roofing Company, Inc. 2010 Bryant/Ratliff Building, Inc.
SERVING KANSAS CITY’S FINEST BUILDERS FOR OVER 30 YEARS.
www.starcompanieskc.com 8320 Westridge | Raytown, MO 64138 | PHONE 816.363.2160 | FAX 816.353.2163
Dedicated to helping you put buyers into homes Your goal is to turn buyers into homeowners. Our goal is to provide financing to make that happen. So no matter what your client’s home buying goals, we can help you by providing financing options to meet nearly any homebuyer need.
Contact your Wells Fargo Home Mortgage branch today. Northland Office: 816-505-4110 Lee’s Summit Office: 816-329-2109 Overland Park Office: 913-319-7970 KC Bank Office: 913-234-7703
Buyer ConnectionsSM – connects buyers and sellers not already working with a real estate professional to professionals in their local market.
Renovation Office: 913-234-2925
Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2014 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS1055681 Expires 5/2015 12
2011 Chicago Title Insurance Co. Kitchens & Baths by Briggs Kline Concrete and Construction Maples Construction Co., Inc. Progressive Environmental & Safety Robertson Construction, LLC SRS Design, LLC 2012 Williams Insulation Prairie Homes, Inc. Ted’s Trash Service, Inc. 2013 Arvest Bank CoreLogic Molle Chevrolet, Inc. TF Forming Systems, Inc. Traditional Homes 2014 Associated Drywall & Painting GTE, LLC/ Steve Guetterman Farms High Definition Drywall
BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY May 2015 • Volume 21 • Issue 5 Copyright 2015
Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 (816) 942-8800 Executive Vice President Sara Corless Editor Marcia Jurgens Contributing Writers: Beatriz Ibarra and Megan Felling Graphics Karla Peterie, Creative Services 2015 Executive Committee Home Builders Association of Greater Kansas City President Mark Mather Vice President Brenner Holland Secretary/Treasurer Harold Phelps Associate Representative Kevin Kirtley Immediate Past President Chris Ragland To subscribe to Building Business News call (816) 733-2224 To advertise in Building Business News call (816) 942-8800 For change of address requests please fax changes to (816) 942-8367 or call (816) 942-8800 For more information, visit the HBA online at www.kchba.org
May 2015 | Volume 21, No. 5 | www.kchba.org
New Members
HBA Staff
Beginnings KC Real Estate
Pro Builders since 1994 LLC
Neenan Company
Mary Godfrey
Ryan T. Propheter
Tom Rowe
203 NW Executive Way, Ste B
604 Market Street
5701 Blue Parkway
Lee’s Summit, MO 64063
Weston, MO 64098
Kansas City, MO 64130
(816) 783-5800
(816) 386-5500
(816) 923-1300
www.beginningskcrealestate.com
www.probuildersofkc.com
www.neenan-company.com
First Service Residential
Delta Construction, LLC
Country Club Bank
Edin Maslo
Brad A. Lee
1936 Linn Street
9400 Mission
Kansas City, MO 64116
Prairie Village, KS 66206
(816) 769-9400
(816) 968-1504
www.deltaconstructionllc.com
www.countryclubbank.com
Christine Lentz 11125 NW Ambassador 200 Kansas City, MO 64153 (816) 414-5300 www.fsresidential.com
Thanks to These HBA 2015 Sponsors
Affiliate Members
Platinum sponsors
Kansas city Star Spaces Magazine KENNY’S TILE Bovard Insurance Group Carpenters District Council
First Service Residential Jason Burgess Bob Board
GOLD sponsors
Bank of Blue Valley Capitol Federal Bank Fasone & Partners Factory Direct Appliance First Federal Bank K & E Flatwork McCray Lumber & Millwork Northcraft Flooring & Granite Nebraska Furniture Mart Henges Insulation and Fireplace 84 Lumber Atronic Alarms Building Solutions Commerce Bank Complete Home Concepts CrossFirst Bank First American Title
11125 NW Ambassador
Owen Lumber Co. Phelps Engineering ProBuild RockTops Granite & Stone Star Drywall & Insulation Sun Lumber Co. United Heating, Cooling & Plumbing Wells Fargo
Kansas City, MO 64153 (816) 414-5300 www.fsresidential.com Reece & Nichols Kern Wood 11601 Granada Leawood, KS 66211 (913) 469-8300 Stewart Specialty Insurance Services
Silver sponsors
Kansas Gas Service Stewart Title
Bronze sponsors Hermes Landscaping Kansas City Title Laclede Gas Locks & Pulls North American Savings Bank Pacific Mutual Door
Frank Laisch 1980 Post Oak Blvd Ste R2c Houston, TX 77056
Pella Products of Kansas City ProSource Secured Title of Kansas City Shamrock Cabinet
(407) 619-9568 www.stewart.com
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Sara Corless Executive Vice President scorless@kchba.org, 816-733-2216 Beatriz Ibarra Vice President of Government Affairs bibarra@kchba.org, 816-733-2237 Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219 Marcia Jurgens Director of Administration marcia@kchba.org, 816-733-2215 Andrew McKeegan Association Services Manager Andrew@kchba.org, 816-733-2224 Phil Yancey Membership Manager Phil@kchba.org, 816-733-2245 Dawn Allen Executive Assistant/Communication and Events dawn@kchba.org, 816-942-8800 Stephanie Stollsteimer Director of Marketing & Special Projects stephanie@kchba.org, 816-733-2213 Kelcee Schlotzhauer Events and Administration Assistant kelcee@kchba.org, 816-942-8800 Megan Felling Communications Manager megan@kchba.org, 816-733-2217 Tricia French Special Projects Assistant tricia@kchba.org, 816-733-2241
www.kchba.org | Volume 21, No. 5 | May 2015
Percent Change Q1 2015 from Q1 2014 20
17.2
16.8
16.3
15.9
15 10 5
5 2.4
0 -5
-2.2 -5.6
-10
Home Sales Warm Up As Spring Arrives The National Association of Home Builders reports that existing home sales increased nationwide by 6.1% in March with the first-time buyer share increasing to 30%. A full housing recovery still awaits the first-time buyers’ return to their average of 40% of all home purchases. Easing mortgage standards and possible passage of the Mortgage Choice Act would further aid first-time buyers into the market. On a more local basis, the Kansas City
Regional Association of Realtors has issued their March Monthly Indicators report which shows the number of sales of new and existing homes has increased by 9.5% for the 1st quarter of 2015 as compared to the same period in 2014. The new homes market by itself shows a 34.7% increase in March 2015 from March 2014 and a quarterly increase of 15.5%. The accompanying chart demonstrates closed sales totals for new and existing homes for selected counties of the metro area.
This month’s tip is:
National Design Contests Now Open The Professional Builder Design Awards and Best in American Living Awards programs are accepting entries for the 2015 contests. Be a part of the annual Professional Builder Design Awards and see how well your designs, plans and communities stack up against those from other builders and architects around the United States. Deadline for Professional Builder registration is May 18 – go to ProBuilder.com/PBDesignAwards for online submittal; completed entries are due by June 1, 2015. The Best in American Living Awards (BALA) is the nation’s premier award program continually redefining design excellence for the entire residential building industry. It spotlights the most creative and innovative builders, remodelers, architects, developers, land planners and interior designers in the nation. Every year, the awards program, sponsored by NAHB Design Committee, recognizes good design in single-family and multifamily homes of all types and sizes, communities, interior design, remodeling and rental developments. The Best in American Living award cycle begins in June – go to nahb.org/BALA for information. 14
May 2015 | Volume 21, No. 5 | www.kchba.org
Local Building Activity Consistent with National Trend March 2015 residential permit statistics indicate a small increase over 2014 for the same quarter last year, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. The 392 single family permits issued in March brings the year’s first quarter total to 887 single family units compared to last year’s first quarter number of 865—an increase of 3%. Nationally, the National Association of Home Builders reports that single family permits rose 2.1%. Multi-family permitting continues to be active, with 478 units in March and 794 for the first three months of the year. Comparing single family permits on a county-by-county basis, Johnson County remains at the same level as 2014, while Clay and Jackson counties together have reported an increase of 84 permits. The Clay county section of Kansas City is experiencing notable growth, with an increase of 51 permits over the first quarter of 2014. Top permitting cities continue to be Kansas City, Olathe, Overland Park, and Lee’s Summit. “First quarter numbers for 2015 are remarkably similar to 2014 in total,” said Executive Vice President Sara Corless, “but there has been a 10% shift this year to the Missouri side of the metro that we attribute to higher land development costs and lot prices. Builders remain optimistic that 2015 sales and permit activity will increase with new designs, energy efficiency and neighborhood amenities available.”
March 2015
Residential Building permit Statistics
Residential Building Permit Statistics CASS COUNTY Archie Belton Cass County Cleveland Drexel Garden City Harrisonville Lake Winnebago Lee's Summit Peculiar Pleasant Hill Raymore Village of Loch Lloyd
CLAY COUNTY Clay County Excelsior Springs Gladstone Kansas City Kearney Lawson Liberty North Kansas City Pleasant Valley Smithville JACKSON COUNTY Blue Springs Buckner Grain Valley Grandview Greenwood Independence Jackson County Kansas City Lake Lotawana Lee's Summit Oak Grove Raytown Sugar Creek PLATTE COUNTY Edgerton Kansas City Parkville Platte City Platte County Riverside Weatherby Lake Weston JOHNSON COUNTY De Soto Edgerton Fairway Gardner Johnson County Leawood Lenexa Merriam Mission Hills Olathe Overland Park Prairie Village Shawnee Spring Hill Westwood
Single Family Units^
M-F Units Sale%
M-F Units Rent
Total Units
S-F Units YTD
M-F Sale YTD
0 2 0 1 0 0 0 0 6 1 3 5 1 19
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 6 0 6
0 2 0 1 0 0 0 0 6 1 3 11 1 25
2 5 8 1 0 0 2 1 9 1 3 13 3 48
1 0 4 75 3 0 1 0 0 4 88
0 0 0 0 0 0 0 0 0 0 0
0 0 0 336 0 0 0 0 0 0 336
1 0 4 411 3 0 1 0 0 4 424
12 0 6 1 9 9 3 11 0 50 4 0 0 105
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 52 0 0 0 52
0 12 2 0 12 0 0 0 26
0 0 0 0 0 0 0 0 0
2 0 0 4 1 13 15 0 1 49 28 3 6 4 0 126
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
MARCH 2015 M-F Rent YTD
Total Units YTD
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 6 0 6
2 5 8 1 0 0 2 1 9 1 3 19 3 54
4 0 5 160 9 0 8 2 0 11 199
0 0 0 0 0 0 0 0 0 0 0
0 0 0 336 0 0 0 0 0 0 336
4 0 5 496 9 0 8 2 0 11 535
12 0 6 1 9 9 3 11 0 102 4 0 0 157
44 0 10 1 10 19 6 16 5 79 7 0 0 197
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 46 0 153 0 0 0 199
44 0 10 1 10 19 6 62 5 232 7 0 0 396
0 0 0 0 0 0 0 0 0
0 12 2 0 12 0 0 0 26
0 28 13 0 21 0 4 0 66
0 0 0 0 0 0 0 0 0
0 5 0 0 0 0 0 0 5
0 33 13 0 21 0 4 0 71
0 0 0 0 0 0 0 0 0 9 75 0 0 0 0 84
2 0 0 4 1 13 15 0 1 58 103 3 6 4 0 210
2 0 0 8 8 17 30 4 1 123 93 4 15 7 0 312
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 72 0 0 0 0 0 9 167 0 0 0 0 248
2 0 0 80 8 17 30 4 1 132 260 4 15 7 0 560
Single Family Units^ LEAVENWORTH COUNTY Basehor 5 Lansing 0 Leav. County 5 Leavenworth 1 Tonganoxie 1 12 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill
Totals
M-F Units Sale%
M-F Units Rent
Total Units
S-F Units YTD
M-F Sale YTD
M-F Rent YTD
Total Units YTD
0 0 0 0 0 0
0 0 0 0 0 0
5 0 5 1 1 12
11 5 13 1 8 38
0 0 0 0 0 0
0 0 0 0 0 0
11 5 13 1 8 38
2 1 5 8
0 0 0 0
0 0 0 0
2 1 5 8
3 1 13 17
0 0 0 0
0 0 0 0
3 1 13 17
3 0 0 0 5 8
0 0 0 0 0 0
0 0 0 0 0 0
3 0 0 0 5 8
3 2 0 0 5 10
0 0 0 0 0 0
0 0 0 0 0 0
3 2 0 0 5 10
392
0
478
870
887
0
794
1681
Comparison of Single Family Building units for Greater Kansas City (Cass, Clay, Jackson, Platte, Johnson, Leavenworth, Miami, Wyandotte Counties)
15
Month/Year January February March April May June July August September October November December
2008 221 262 353 441 231 260 311 293 264 314 167 115
2009 96 129 131 184 189 204 196 207 219 226 192 182
2010 137 145 252 228 213 239 180 243 173 279 173 209
2011 90 121 180 210 230 262 204 205 202 205 185 207
2012 188 182 270 277 294 268 288 260 379 331 283 279
2013 273 224 335 444 337 333 409 354 384 369 340 288
2014 287 216 362 439 385 364 375 352 383 468 312 328
2015 235 260 392
Annual Total
3,232
2,155
2,471
2,301
3,299
4,090
4,271
887
All numbers shown in the box above are ACTUAL numbers.
Comparison of Permits By Units Issued Year to Date* 2008-2015 2008 2009 2010 2011 2012 2013 2014 2015
S-F Units 836 356 534 391 640 832 865 887
M-F Units
904 11 55 0 73 129 832 794
Total Units
1740 367 589 391 713 961 1697 1681
^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units and are divided by sale/rent.
# Not available at time of report
Permit information reflects the most recent data at time of publication. In order to ensure accurate recording of residential building permit statistics, the HBA may revise monthly and year-to-date figures when updated data is made available.
www.kchba.org | Volume 21, No. 5 | May 2015
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