Housing Industry News Vol. 2 Issue 4 - December 2018

M I N N E S O T A

HOUSING INDUSTRY NEWS

INSIDE Harstad v. Woodbury Follow-Up [PG. 4] Survey Reveals Dire Labor Shortage [PG. 5]

NEWS AND INFORMATION FOR HOME BUILDERS AND REMODELERS BY HOUSING FIRST MINNESOTA • HOUSINGFIRSTMN.ORG

2018 Housing Report Card: Good, But Needs Improvement Housing Affordability Issue Continues to Grow

VOL. 2 ISSUE 4, DEC. 2018

“The inadequate level of U.S. housing supply is a major challenge facing the housing market in 2018 and likely for years to come.”

Sam Khater, CHIEF ECONOMIST AT FREDDIE MAC

mostly across the board. But the strongest performance the last few years was in the more affordable price points,” said David Arbit, MAAR director of research and economics. “The inventory shortage continues to weigh on would-be buyers.”

Townhomes Surge Ahead One of the bright spots in the market was the growth in townhome construction. Pending sales of newly built townhomes were up 13.7 percent while the number of permits pulled year-to-date for townhomes were up 23 percent.

The rise in townhome construction is a clear sign that builders are trying to reach a larger share of the market. Townhomes appeal to both first-time homebuyers looking for a more affordable home and baby boomers looking to downsize.

Builder Confidence Drops

Minnesota homebuilders had their second-best year in a decade.

According to the 2018 single-family permit numbers, Minnesota homebuilders had their second-best year in a decade. But, those numbers seem more disappointing coming off 2017, which was the best year for new housing construction since the Great Recession.

Minnesota single-family permits were down 3 percent year-to-date through October, but according to the Minneapolis Area Association of REALTORS (MAAR), new construction pending sales through October were up 7.8 percent.

While some indicators point to the

existing housing market shifting from a seller’s to a buyer’s market, the inventory of homes for sale is still at record lows.

Therefore, prices continue to rise, homes are selling in less time and sellers are yielding a higher share of their list price.

“The market is seeing continued strength,

Homebuilder confidence took its deepest plunge since 2014 in November. According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder confidence in the market for newly-built single-family homes dropped eight points to 60. This was a sharper month-over-month decline in sentiment than during the Great Recession.

“For the past several years, shortages of labor and lots along with rising regulatory costs have led to a slow recovery in single-family construction,” said Robert Dietz, NAHB chief economist. “While home price growth CONTINUED >> PAGE 3

Legislative Preview: Housing Emerges as Top Tier Issue 2960 Centre Pointe Drive Roseville, MN 55113 HousingFirstMN.org

HOUSING INDUSTRY NEWS

Minnesota, more families are impacted by the increasing burden of housing affordability and our region’s competitiveness is at risk.

In a stark reminder of the housing market challenges, home affordability in the Twin Cities metro CONTINUED >> PAGE 3

M I N N E S O T A

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When the legislature gavels in to begin a new legislative biennium, many issues are on the docket waiting to be addressed. Housing affordability is poised to be one of the key issues.

As the price of housing, from rentals to single-family homeownership, continues to increase across

HOUSING INDUSTRY NEWS

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Let’s Fix It

By TOM WIENER Housing First Minnesota tom@cardinalhomebuilders.com

Tom Wiener, 2018 president, Housing First Minnesota and Cardinal Homebuilders

As we transition into the new year, the opportunities and challenges facing the housing industry are remarkable. On the plus side, our economy is strong, employment is steady and demand for housing remains on the upswing. Those positive housing market attributes are balanced with challenges, including a 10-year low in housing affordability, steep regulatory costs placed on new homes and a workforce that is not replenishing at a healthy rate.

The Governor’s Task Force on Housing provided key conclusions in its final report, which was released last August.

Key recommendations include building 300,000 homes by 2030, driven primarily by the private market; establishing formal review of regulatory cost drivers; and

prioritization of housing as a key building block by policy makers.

This consensus conclusion by a diverse, bipartisan panel sets the stage for the hard work of addressing this housing market problem.

As the leading voice of housing, Housing First Minnesota will be a leader in this discussion through research, policy recommendations, and urging lawmakers at the state, regional, and local level to address this challenge with urgency.

Our message to policy makers, to government regulators at all levels, and to the general public is this: our housing eco-system is broken, which impacts every Minnesotan. Let’s fix it.

In the coming weeks and months you will see a broad-based roll out of our efforts to share research, raise awareness and advance housing policy recommendations.

“Our message to policy makers, to government regulators at all levels, and to the general public is this: our housing eco-system is broken, which impacts every Minnesotan. Let’s fix it.”

LET'S FIX IT.

i

A Pathway to Fix Minnesota’s Housing Market

Tom Wiener, 2018 PRESIDENT, HOUSING FIRST MINNESOTA AND CARDINAL HOMEBUILDERS Housing has evolved into an issue of regional competitiveness, it will take a broad coalition of thought leaders to address this issue. We look forward to solving this problem together. Let’s fix it.

# L E TS F I X I T M N L E TS F I X I T M N . O RG

2018 Project Build Minnesota Completes Inaugural Year With Strong Accomplishments

Project Build Minnesota, which was officially incorporated as a 501c3 nonprofit in January 2018, finishes its first year in operation with much to tout.

The goal of the collaborative effort is to showcase construction careers and attract hard-working Minnesota youth to the industry’s tremendous opportunities.

The fledgling effort was formed by Housing First Minnesota, Minnesota Builders

construction companies have joined the effort, expanding its growing reach.

The centerpiece of the effort is the Project Build Minnesota website, which features tiles showcasing wages and jobs, a job board, a comprehensive review of industry scholarships and an active blog. This effort is supplemented by active social media on Facebook, Instagram and Twitter.

Exchange, Associated Builders and Contrac-

The first year was one of infrastructure de-

tors, and The Builders Group. Several addi-

velopment in which bylaws, articles of incor-

tional construction organizations and private

poration, legal filings, committees, an annual

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HOUSING INDUSTRY NEWS

budget, a fundraising plan and a strategic plan were developed.

Additional highlights include: • Developed and implemented a social media campaign designed to drive young people to our website. From May through December, 334,607 people have been reached creating 5,603 engagements.

• Developed marketing materials to be used for career fairs, seminars, trade shows, etc.

• Developed a Speakers Bureau in conjunction with Best Prep that has 63 volunteer speakers. The enterprise has presented in eight school classes that had a total of 123 students. If you are interested in joining the speakers bureau, please let Executive Director Dennis Medo know (dennis@projectbuildmn.org) • Had a booth at six career fairs that attracted over 1,800 high school students/ parents.

• Had a booth at 11 trade/professional shows that had over 4,000 attendees.

These included the Minnesota School Boards Association, Minnesota School Counselors Association, Minnesota

Association of Secondary Administrators, and the Builders and Remodeler Show.

• Started a construction program for the Explorer Scouts in the St. Cloud area.

There are eight students enrolled. Over a period of nine months (one three-hour class each month) they are building a bunk house for the scout camp in the Brainerd area.

• In conjunction with TBG, Project Build donated 15 tool belts and tools to students at Elk River High School who are in their shed building class.

Project Build Minnesota held its annual election at the December Board of Directors meeting. Tom Getzke, Minnesota Builders Exchange, will chair Project Build in 2019.

David Siegel, Housing First Minnesota, will serve as the treasurer while Bob Heise, Associated Builders and Contractors, will serve as secretary.

Also at its December meeting, the organization highlighted three legislative priorities that mirror priorities of many of the participating associations: 16- and 17-year-olds on the job site, state funding for Project Build Minnesota’s efforts, and a greater emphasis on career and technical education in Minnesota’s high schools.

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CONTINUED FROM PAGE 1

2018 Housing Report Card: Good, But Needs Improvement accommodated increasing construction costs during this period, rising mortgage interest rates in recent months coupled with the cumulative run-up in pricing has caused housing demand to stall. As a consequence, builders have adopted a more cautious approach to market conditions.”

Still, any index number over 50 indicates that more builders view conditions as good than poor. Builders are noting that consumer demand for new homes is still there, but that homebuyers are taking a pause due to concerns over rising interest rates and home prices.

Regionally, looking at the three-month moving averages for HMI scores, the Midwest edged one point lower to 57. The Northeast rose two points to 58, the South declined two points to 68, and the West dropped three points to 71.

Rising Mortgage Rates Impact Housing Rising interest rates are now clearly taking their toll on potential homebuyers.

Mortgage applications dropped to a fouryear low in November after interest rates hit an eight-year high. According to the Mortgage Bankers Association, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased in November to the highest rate since April 2010.

“Rates increased slightly in November, as various job market indicators showed a bounce back in job gains and an acceleration in wage growth in October,” said Joel Kan, Mortgage Bankers Association’s associate vice president of economic and

industry forecasts. “Application activity decreased over the week for both purchase and refinance applications, with the overall market index down to its lowest level since December 2014.”

As mortgage rates have climbed so have home prices. Which means thousands of additional homebuyers have now been priced out of the market.

Affordability Biggest Challenge Ahead Jobs are good, unemployment continues to drop, consumer confidence is at high levels, yet housing continues to lag behind.

Homebuilders, developers and their partners are stuck in the throes of rising construction and regulatory costs. These costs are constricting supply and causing home prices to climb higher.

A new nationwide survey conducted on behalf of the NAHB reveals that nearly three out of four American households believe that the nation is suffering a housing affordability crisis, and a majority of respondents reported this is a problem at their local and state level as well.

Analysis from Freddie Mac shows that nationally 370,000 fewer units were built in 2017 than needed to satisfy demand.

“If supply continues to fall short of demand, home prices and rents are likely to outpace income and household formation will fail to reach potential,” said Sam Khater, chief economist at Freddie Mac. “The inadequate level of U.S. housing supply is a major challenge facing the housing market in 2018 and likely for years to come.”

Three out of four American households believe that the nation is suffering a housing affordability crisis.

The legislature convenes on Jan. 8 and has until May 20 to finish its work.

CONTINUED FROM PAGE 1

Legislative Preview: Housing Emerges as Top Tier Issue area hit another decade-low in October 2018, according to the Minneapolis Area Association of Realtors’ (MAAR) latest survey released in November 2018. A combination of rising interest rates, rising construction costs, slow wage growth and low inventory has exacerbated the issue.

“While the market hasn’t quite transformed, the dynamics are shifting and the market is transitioning,” said David Arbit, director of research and economics at MAAR. “Today’s buyers still face plenty of competition over limited supply.”

A central challenge in the low inventory of existing homes, is the long-term under-supply of newly built homes. Homebuilders in our region report that they are unable to meet demand primarily because of cost barriers attributable to regulation and a labor force that has failed to replenish a healthy supply of construction trade professionals.

The Governor’s Task Force on Housing released

its findings last August, presenting a clarity to the overall housing market challenge, along with a host of recommended strategies.

“Gov. Mark Dayton’s housing task force was clear.

We need to build more homes. 300,000 by 2030,” said David Siegel, Housing First Minnesota executive director. “In order to meet this demand we must discuss and take action on issues including housing cost transparency, land use availability, regulatory relief and the workforce shortage.”

The challenge of addressing housing by state lawmakers will be met by a new legislative landscape following the 2018 elections. Atop state government will be Gov.elect Tim Walz. He will be joined by the legislature, the only split body in the country. The Minnesota House flipped majority control to the DFL, while the Senate majority remains with Republicans. Roughly 30 percent of the Minnesota House is made up of newly elected legislators, who will work

with a new administration under Gov.-elect Walz and his new cabinet of agency leaders.

Over the last few years, proposals have been initiated to increase transparency and oversight for regulatory costs impacting housing, dedicate funding for housing finance assistance and to promote careers in construction. It’s expected that these issues will be refreshed for the 2019 session, along with other proposals.

“The new legislature and Gov.-elect Walz are fortunate to face housing challenges where there is broad, bipartisan agreement in the identification of our affordability challenges” said James Vagle, Housing First Minnesota’s director of advocacy.

“The steeper challenge facing them will be to find consensus around housing initiatives that get to the root causes of our region’s broken housing eco-system”.

The legislature convenes on Jan. 8 and has until May 20 to finish its work.

The Voice of Minnesota’s Housing Movement TRACK THE CONVERSATION ON TWITTER:

@HousingFirstMN | #MNHomeownership

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Housing at theAFFAIRS Capitol REGULATORY

Development Following Harstad v. Woodbury Decision Cities Retain Many Infrastructure Funding

The development community has responded

notably area-wide assessments, bonding for

Dayton unless preliminary plat approval was

Options

by indicating such is not at all the case. In fact,

projects, paying out of the city’s budget, or de-

already granted by the city council prior to

developers cite the myriad of fees they pres-

nying projects as premature.

Sept. 26, 2018. As of the printing of this is-

ently pay as one of the fundamental challenges

Housing Industry and Cities Respond

sue, the Dayton moratorium remains in effect,

In the four months since the Minnesota Supreme Court’s landmark decision in the

to affordability.

Harstad v. Woodbury case, cities have repeat-

And the court case made clear that cities

edly suggested that developers aren’t “paying

continue to have a wide array of infrastructure

their way” in new residential developments.

funding mechanisms at their disposal, most

Immediately following the key decision, Housing First Minnesota sent a letter out to the state’s top 25 growth cities to better understand who might have been levying impact fees not allowed by state statute and what steps those cities intended to take following the ruling.

Dayton enacted a year-long moratorium on development on Sept. 26, 2018.

Energy has analyzed the 2018 International Energy Conservation Code.

DLI said in early December that it is waiting for the United States Department of Energy’s review.

DLI has said the new building codes are slated to go into effect in March 2020.

Plumbing Code The Board of Plumbing’s Ad Hoc Rulemaking Committee began review of Minnesota’s plumbing code in October. Over the next several months, members of the committee and representatives of the plumbing trades and construction organizations will discuss potential changes to Minnesota’s Plumbing Code.

“The dishwasher air gap requirement is something we’re watching closely,” said Nick Erickson, regulatory affairs manager for Housing First Minnesota. A source of frustration for builders, remodelers and homeowners since its adoption, Housing First Minnesota formally requested the provision be removed from the Minnesota Plumbing Code in its next version.

Minnesota Department of Health

Nick Erickson, regulatory affairs manager, Housing First Minnesota

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HOUSING INDUSTRY NEWS

On November 8, the commissioner of the Minnesota Department of Health (MDH) signed the order to adopt its radon licensing rules.

in the city. In addition, the city has begun to require new traffic studies on proposed development following the court’s decision.

Next Stop: Minnesota State Legislature The League of Minnesota Cities listed infrastructure impact fees as one of its 194 leg-

Housing First Minnesota reports that the

islative and administrative priorities for 2019.

majority of the cities responding to their re-

The city of Dayton, at its Sept. 26, 2018 coun-

quest had either not used impact fees or had

cil meeting, said authorizing impact fees for

ceased using them due to the court case. Fur-

new developments was one of the city’s top

ther, they indicated they had no intent to re-

priorities.

configure their fees to recoup revenue that had

“If enacted, Minnesota would have one of

previously been gained using the now clearly

the highest number of authorized impact fees

unsupported impact fees.

in the nation, which already included water,

One city, Dayton, enacted a year-long mor-

sanitary and storm sewer, and park fees,” said

atorium on development on Sept. 26, 2018 in

David Siegel, executive director of Housing

response to the court decision. Dayton had

First Minnesota. “At a time of eroding housing

long relied on the impact fees identified as

affordability, government should be looking to

improper in the court case. Under the mora-

decrease the price of homes, not add thousands

torium, no new developments can proceed in

of dollars to the price of new housing units.”

New Year Brings Renewed Focus On Code Changes Following the initial review of code changes by the Technical Advisory Groups (TAG) in early 2018, the Minnesota Department of Labor & Industry (DLI) will continue working on updates to Minnesota’s building codes in 2019.

In June 2018, the Construction Code Advisory Council issued a report recapping the technical review of model code changes from nearly 50 TAG meetings in early 2018. This report highlighted potential changes builders could see when the final codes are adopted.

The status of Minnesota’s residential energy code is still in question. At its June meeting, the CCAC decided on deciding whether or not to adopt a new residential energy code until after the United States Department of

thus effectively stifling new home construction

Authorized under the Minnesota Radon Licensing Act of 2015, the rule requires individuals performing radon-related services to be licensed by the State of Minnesota, though the Department of Health.

MDH is also in the process of adopting its own Lead Paint (RRP) Rule, which would allow the department to take over local enforcement of the EPA’s federal RRP Rule. The final proposed rule is expected to be released soon and was not available at the time of printing.

TRACK THE CONVERSATION ON TWITTER: @housingfirstmn #MNHomeownership

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OSHA Releases Most Cited Violations of 2018 The annual release of the Occupational Safety & Health Administration’s top workplace safety violations is a great reminder to review worksite safety procedures and compliance.

1

Fall Protection

2

Hazard Communication

3

Scaffolding - General Requirements

4

Respiratory Protection

5

Control of Hazardous Energy Lockout/Tagout

6

Ladders

7

Powered Industrial Trucks

8

Fall Protection - Training Requirement

9

Machine Guarding - General Requirement

10

Personal Protective

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New Survey Reveals Direness of Construction Labor Shortage in Minnesota

Survey conducted by Housing First Minnesota for Project Build Minnesota.

It’s well known that the construction industry is experiencing a labor shortage, but a new survey conducted by Housing First Minnesota on behalf of Project Build Minnesota reveals the depth of the issue. Of the more than 225 construction firms that responded to the survey, 88 percent reported that they have experienced a labor shortage in the past 12 months, with 63 percent of respondents reporting the labor shortage

has caused their firm to actually turn away business.

“The results of this survey confirm that the labor shortage is now contributing to Minnesota’s housing shortage and housing affordability problem,” said David Siegel, executive director of Housing First Minnesota and Project Build Minnesota board member. “We must take action now to alleviate the labor shortage before this issue worsens. Gov. Dayton has called on our industry to build 300,000 new homes by 2030,

and that will be exceptionally difficult if we don’t address this labor shortage.”

Respondents reported (72 percent) that not only were they unable to find workers, their new hires are now less prepared for the job than they were a decade ago.

Siegel acknowledged that the task of introducing youth to our industry will not be easy. “For far too long, we’ve pushed all of our state’s youth toward four-year colleges.

It’s time to return to a conversation

about the importance of skilled

“The results of this survey confirm that the labor shortage is now contributing to Minnesota’s housing shortage and housing affordability problem.”

David Siegel, PROJECT BUILD MINNESOTA BOARD MEMBER, HOUSING FIRST MINNESOTA EXECUTIVE DIRECTOR

trades,” he said. “With the loss of technical education programs in our schools, young people simply are not being exposed to the jobs in the construction industry as they were previously.”

The survey also revealed that many companies (80 percent) are raising wages to attract new workers and some companies (43 percent) are also offering a bonus to employees for referrals.

New Federal Water Rule Definition Released Move Seeks To Clarify Which Waters Fall Under Federal Protection After months of waiting, the Environmental Protection Agency and the Department of the Army released a new definition for the Waters of the United States (WOTUS) Rule. The WOTUS Rule, which gives the EPA and the Army Corps of Engineers the ability to protect “navigable waterways,” has long been a source of frustration for the housing industry due to the costly federal permits to build on or modify lands near covered waterways.

“Our proposal would replace the Obama EPA’s 2015 definition with one that respects the limits of the Clean Water Act and provides states and landowners the certainty they need to manage their natural resources and grow local economies,” said Andrew Wheeler, the acting administrator of the EPA. The proposed definition reduces the amount of waters that fall under the rule and eliminates the time-consuming practices of federal agencies attempting to decide if a “significant” connection exists

between water near a proposed development and a navigable waterway downstream.

“EPA and the Army together propose this new definition that provides a clear and predictable approach to regulating ‘waters of the United States.’ We focused on developing an implementable definition that balances local and national interests under the Clean Water Act,” said R.D. James, assistant secretary of the Army for Civil Works.

Due to lawsuits in several states, the WOTUS rule is not universally enforced across the United States.

While the rule is enforced in Minnesota, the rule is not enforced in 28 states, including Iowa, North Dakota, South Dakota and Wisconsin.

Experts expect the new WOTUS rule to be in place by September 2019.

Have a story idea for this publication?

Let us know! Send your story to info@housingfirstmn.org

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New proposed definition reduces the amount of waters that fall under the rule.

HOUSING INDUSTRY NEWS

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Housing theTHE Capitol HOUSINGatON HILL

Discussing Development in a High-Growth City A Conversation with City of Victoria Councilwoman-Elect Deb McMillan Q: As a highly attractive city for

growth from a land use and zoning

by the council to create those differ-

potential homeowners, how can the

perspective.

ent kinds of housing options is essential to ensuring those that claim

city of Victoria work with the development community to accommodate

are ever evolving. The development

“We, like all metro communities, are putting the finishing touches on our comprehensive plan, which spells out our intentions for accommodating the growth from a land use and zoning perspective.”

community is on the forefront of

Deb McMillan, CITY OF VICTORIA

growth?

McMillan: First and foremost, the city of Victoria should be welcoming and open to potential developers and investors. Technology changes and construction products and designs

those changes and as developers

COUNCILWOMAN-ELECT

sion for the community is clear, our processes are sound, and the city staff and council are responsive. We, like all metro communities, are putting

find the dwelling in Victoria that suits their needs at whatever stage of life they’re in.

Q: During your 30 years in Victoria, how has the community changed?

McMillan: In 30 years, we’ve gone from a community of less than 2,500 people to a community of more than 9,500 people. We’ve matured from a sleepy bedroom community to a

bring new ideas to Victoria, it is the job of the council to ensure our vi-

Victoria as their community will also

much sought-after city with new Q: How do we encourage a diverse va-

neighborhoods, a vibrant business

riety of housing options for the next

district, two new schools and a rec-

generation?

reation center. As important as what McMillan: This is an important has changed are the things that have question not only for the next gen- not. Victoria has always been a com-

eration, but the generation of empty munity with active civic and service the finishing touches on our com- nesters and retirees whose current organizations, churches and neighprehensive plan, which spells out our dwelling may no longer meet their borhoods, all surrounded by lakes, Deb McMillan, City of Victoria Councilwoman-Elect

SOURCE: TWINWEST CHAMBER OF COMMERCE

intentions for accommodating the needs. Awareness and intentionality farms and nature.

03.04.2019 REGISTER NOW • HOUSINGDAYMN.ORG

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HOUSING INDUSTRY NEWS

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Housing First Minnesota Comments on Minneapolis Housing Policies “The proposed inclusionary zoning requirement will negatively impact the housing industry and those who seek homeownership opportunities in Minneapolis and beyond.”

David Siegel, HOUSING FIRST MINNESOTA EXECUTIVE DIRECTOR

The End of Single-Family Zoning Additionally, Minneapolis approved a new plan that allows greater density throughout the entire city. Under this proposal, which still needs to be approved by the Metropolitan Council, triplexes would be allowed in areas that had been limited to single-family homes.

Additionally, the plan reduces parking mandates and endorses raising building height limits for apartment buildings near transit.

“We applaud Minneapolis for its efforts to allow the housing market to provide a

Inclusionary zoning policy requires 10 percent of units be affordable.

greater variety of options to consumers,” said In an effort to address growing housing affordability issues, Minneapolis, Minn. recently enacted two major policies.

Inclusionary Zoning This policy requires that 10 percent of units be affordable at 60 percent of area median income, or 20 percent of the units be affordable at 50 percent of area median income (AMI) if the development receives a city subsidy.

In order to lower the costs of housing for those at or under these AMI requirements, renters and homebuyers in other units in the same development would face higher housing costs, as these buyers and renters pay for the subsidized portion of the “affordable” units on top of their own housing costs.

David Siegel, executive director of Housing

First Minnesota, said in a letter to the city of Minneapolis that while the city and Housing First Minnesota share the goal of increasing housing affordability, this proposal will have the opposite effect.

“The proposed inclusionary zoning requirement will negatively impact the housing industry and those who seek homeownership opportunities in Minneapolis and beyond,” said Siegel.

Siegel added that the proposal is unlikely to achieve these goals for several reasons: • The inclusionary zoning concepts embedded in the proposal pass higher costs on to households who buy market rate homes, forcing them to pay higher prices.

Additional Issues to Watch in the 2019 Legislative Session In addition to housing policy discussions, there are many other issues on the table that could impact the housing industry:

Tax Conformity Business and personal taxes could be impacted.

Minimum Wage Continue with the city-by-city ordinances or establish a statewide increase?

• The proposal acts as a tax on market

Siegel. “This does help alleviate Minnesota’s

rate homes at a time when broad af-

affordability crisis. More options create more

fordability measures are needed for

opportunities and help the entire housing

all Minnesotans across the housing

ecosystem.”

ecosystem.

• The proposal will have a chilling impact on the willingness of developers to engage in projects within the city of Minneapolis, shifting development elsewhere.

In place of the proposal, Housing First Minnesota suggested the city examine ways to truly reduce the cost of housing in Minneapolis, including substantial zoning flexibility, regulatory reform, and innovative financing.

David Siegel, Housing First Minnesota Executive Director

TEXT HOUSINGFIRST TO 52866 Are you willing to contact your elected officials on behalf of the housing industry?

Join the Housing First Action Network (HFAN). When our industry is faced with challenges, it’s important elected officials hear directly from their constituents in the industry. The Housing First Action Network is a grassroots network utilized to advocate for the industry at all levels of government.

Paid Family and Maternity Leave Business and personal taxes could be impacted.

Technical and Vocational Curriculum

Join the Housing First Action Network

A greater emphasis in schools throughout the state seems to have bipartisan support.

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| 7

MARKET REPORT

Consumer Housing Trends Report Reveals Preferences of New Construction Buyers A consumer housing trends report by Zillow Group revealed features that are most important to new construction buyers during their search process.

For new construction buyers in the U.S., a safe and walkable neighborhood trumps being near family and friends, according to the Zillow Group New Construction Consumer Housing Trends Report 2018. Of the homeowners that purchased new construction homes, 88 percent found it very or extremely important that the neighborhood felt safe, 57 percent found it very or extremely important that the neighborhood is walkable, and 47 percent said living

close to family and friends is very or extremely important.

The concept of a home’s newness and the confidence of knowing they likely won’t need to replace major appliances in the near future is a strong draw for new construction buyers.

According to the report, 49 percent of new construction buyers identified everything in the home being new as one of their top three reasons for purchasing new.

New construction buyers place more importance on having their preferred finishes than existing home buyers (71 percent compared to

Location Motivates Homebuyers Top Motivations to Buy a Home

50 percent) and on energy efficiency (71 percent compared to 53 percent).

When it comes to home characteristics considered very or extremely important, affordability, preferred number of bedrooms, preferred floor plan/layout and air conditioning are at the top of the list for the majority of new construction buyers.

How New Construction Buyers Search New construction buyers employ a variety of search tactics when they shop for a new home, with online resources topping the list, according to the report.

payments is eclipsing the rise in property value. The

Home Design

typical mortgage payment

Price

79% 76% 65%

REAL ESTATE AGENT OR BROKER

ONLINE RESOURCE

40%

FRIEND, NEIGHBOR, OR COLLEAGUE

60%

30%

49%

19%

HOME BUILDER/SALES CENTER

PRINT ADS

FOR SALE OR OPEN HOUSE SIGNS

DIRECT MAIL

SOURCE: ZILLOW GROUP NEW CONSTRUCTION CONSUMER HOUSING TRENDS REPORT, 2018

Mortgage Rates Increase Outpace Value The rise in mortgage

Location

How New Construction Buyers Search

in August 2018 was up

Safety

15.4 percent, or $118 a

Community Amenities

month, from a year earlier, even though home values

gained just 6.5 percent in that same period.

The combination has sparked concerns over a housing market slowdown.

Since the Federal Reserve started to raise short-term interest rates in 2015, long-term interest rates – including mortgage rates

– have remained surprising low. They had withstood the Fed rate hikes through 2018 without moving much until this fall.

If the labor market and inflation continue as expected, analysts predict the Fed will hike rates twice in the first half of 2019.

Accessibility

Growth in Mortgage Payments Rapidly Outpace Growth in Home Values

Schools

Annual Change in Home Values and in Mortgage Payments

Environmentally Sensitive Practices Prestige

SOURCE: MEYERS RESEARCH’S COMMUNITY AND HOME STRATEGY SURVEY

A survey from Meyers Research shows that of the top motivations in the U.S. to buy a home, number one is location. Meyers Research explains that consumers are

looking for a location within distance from a central business district that includes a walkable lifestyle within the community. The data shows that the community

needs to match the homebuyers ideal lifestyle.

The second biggest motivator is home design followed by price and safety.

“Of the top

Softwood Lumber Prices (January 2000–November 2018)

motivations to move, home design is ranked second, and is the only thing homebuilders can control,” said Mollie Carmichael, principal at Meyers Research.

SOURCE: ZILLOW MORTGAGE DATA AND ZILLOW HOME VALUE INDEX, AUGUST 2018.

Lumber Prices Drop Drastically Producer prices for soft-

2018, the second consecutive

While the lumber price

wood lumber have dropped

decrease for the index to the

drop will give homebuilders

drastically from their mid-

latest producer price index

some relief, other construc-

year highs. They are now at

released by the Bureau of La-

their lowest levels since Jan-

bor Statistics. The produc-

uary 2017. The U.S.-Canada

er price index for softwood

trade war sparked the surge

lumber has fallen 23.6 per-

in lumber prices.

cent (not seasonally adjusted)

war, and labor costs, which

since setting cycle and all-

is

time highs in June 2018.

production.

Softwood lumber prices fell 3 percent in November

tion costs continue to climb, including steel costs, a victim of the U.S.-China trade

already

slowing

down

SOURCE: NAHB

8|

HOUSING INDUSTRY NEWS

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Housing Market Report Twin Cities Residential Construction Steady in 2018 While the forecasts for 2018 that called for additional growth were a bit off, overall the market was strong this year.

Coming off a very strong 2017, single-family permit activity seemed a bit slow in 2018. Historically, 2018 was the second best year in over a decade.

State of Minnesota

Moorhead

118

SOURCE: CITY OF MOORHEAD

12,491

Duluth

2018 SingleMankato Family Permits

94

SOURCE: US CENSUS

SOURCE: US CENSUS

St. Cloud

247

SOURCE: CENTRAL MINNESOTA BUILDERS ASSOCIATION

Twin Cities

7,591 329

(St. Cloud-Area Data Not Reported to US Census)

Mankato

129

SOURCE: US CENSUS

Rochester

SOURCE: US CENSUS

SOURCE: US CENSUS

OCT. 2018

OCT. 2018

$265,000

$239,500 OCT. 2017

OCT. 2017

+8.6%

$244,000

+8.9%

Y-Y Change

$220,000

2017

Minnesota Construction Employment Past 5 Months SOURCE: DEED

Y-Y Change

2017

$244,000

$220,000

Twin Cities Median Sales Price

Minnesota Median Sales Price

SOURCE: MINNEAPOLIS REALTORS

SOURCE: MINNESOTA REALTORS

United States

Twin Cities Construction Employment Past 5 Months

58

West - 61

SOURCE: US CENSUS. HOUSING FIRST MINNESOTA COLLECTED THE ABOVE PERMIT INFORMATION FROM AVAILABLE PUBLIC RESOURCES.

South - 59

SOURCE: DEED

Midwest - 58

Northeast - 59

Regional Remodeling Market Indicies, 2018 Q3 SOURCE: NAHB

The Overall Remodeling Market Index is calculated by averaging the Current Marketing Index and the Future Market Indicators Index. Any number over 50 indicates that more remodelers view remodeling market conditions as higher than the previous quarter. Results are seasonally adjusted.

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Minnesota’s unemployment rate held steady in October at 2.8 percent as the state added 3,400 jobs. The number of unemployed Minnesotans is now at 86,118 which is the lowest number since the last recession. According to the Minnesota Department of Employment and Economic Development the entire construction sector is up 8,269 jobs since October of 2017.

HOUSING INDUSTRY NEWS

| 9

MARKET REPORT

State’s Largest Green Building Program Tests 15,000th Home Green

David Siegel, executive

eight years, homes have

without cost. When

Path, the state’s largest

Minnesota’s

director of Housing

become more energy

Housing First Min-

energy efficient new

First Minnesota.

efficient, both as the

nesota last surveyed

energy code became

members, they report-

construction program, tested

its

When a new home

15,000th

is tested, Minnesota’s

more

and

ed that the increase in

home in 2018. The

Green Path issues a

as home builders and

efficiency since 2015 is

data from Minneso-

Home

building officials in-

costing new home buy-

ta’s Green Path mir-

Report (HPR), which

corporated

ers roughly $7,000 per

rors what the national

shows the HERS rat-

techniques.

RESNET organization

ing and air exchang-

shows:

es-per-hour

Performance

stringent

average

According to RES-

HERS rating of 51

NET, Minnesota had

homes are some of the

from the energy rater

and with an average air

the

most efficient in the

and

tester. Housing

exchanges per hour of

HERS score in 2017

U.S.

First Minnesota, the

1.69, the homes built

at 51. The three states

“Green

Path

an

home.

results

Minnesota’s

With

efficiency

fourth-lowest

has

Green Path program

in Minnesota this year

with

given us an unparal-

provider, compiled data

are far more efficient

however,

leled view to the en-

on energy efficiency

than code prescribes.

fewer homes, making

ergy

during the lifetime of

Builders have pointed

Minnesota the most

the program.

out that this increase

energy-efficient of all

in efficiency is not

high-growth states.

efficiency

and

performance of homes in

Minnesota,” said

During

the

past

lower

Minnesota’s average HERS rating 4th best in U.S.

scores,

tested

far

STATE

HERS RATING

2017 NO. OF HOMES TESTED

VERMONT

43

311

MAINE

46

13

“Green Path has given us an unparalleled view to the energy efficiency and performance of homes in Minnesota.”

MONTANA

49

95

MINNESOTA

51

6,261

David Siegel, HOUSING FIRST MINNESOTA EXECUTIVE DIRECTOR

NEW YORK

53

3,711

SOURCE: RESNET

What Do Men and Women Agree on in a New Home?

B E CO M E A N

While men and women may disagree on a number of things when it comes to purchasing a new home there one thing they agree on. According to a national survey by Meyers Research in an answer to an open-ended question on what “home” means, the top answer for both men and women was “comfortable.”

Men prioritized outside entertainment space, while women cared more for inside entertaining space. Another open-ended question by Meyers Research asked: what does “community” mean in one word? “Friendly” was women’s top answer and “safe” was men’s top answer.

How do you address the differences

Let’s stand together to support Minnesota’s housing industry. Become an Advocate and protect the industry we belong to that creates our livelihood.

JOIN US AT:

What does “home” mean for both men and women?

Comfortable.

in preferences women want compared to what men want in a new home purchase?

Keep in mind, Meyers Research in-

Both also agree that they want a home that is easy to maintain and has fitness amenities. However, that’s about all that they agree on according to the survey.

dicates that women are the major influence in 92 percent of all home purchases and the woman, and her wants, will weigh heavily on the decision in the new home purchase.

HousingFirstMN.org TOP WANTS IN A NEW HOME MEN VS. WOMEN

• Downstairs bedroom and bath • Bonus/multi-purpose room • Formal office (dedicated room) • Family room

10 |

HOUSING INDUSTRY NEWS

• Master suite with inviting bathtub • Functional layout and space • Pantry • Family room

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Lennar and Michels Homes Named the 2018 Builder and Remodeler of the Year

Lennar wins Builder of the Year Award.

Michels Homes wins Remodeler of the Year Award.

Nearly 900 homebuilding industry members attended the

the 2018 Legislator of the Year. As chair of the Job Growth

Building Industry Gala on Oct. 25, 2018 at the new Mystic

and Energy Affordability Policy and Finance Committee,

Lake Center.

Rep. Garofalo prioritized housing affordability discussions,

In all, 189 awards were handed out including 16 RO-

shining light on the compound impact of regulations on af-

MAs, 22 Reggies and 137 Trillium Awards. Lennar went

fordability, and elevating the housing debate to new heights.

home as the 2018 Builder of the Year, Michels Homes won

Other top awards presented included the Robert L. Han-

the 2018 Remodeler of the Year and In-Focus Systems went

son Lifetime Achievement Award for industry service that

home as the 2018 Associate of the Year. The winning com-

went to Betty Hardle and Richard Berg, the Bennie Award

panies were selected based on evaluations of association en-

for best neighborhood design went to Spirit of Brandtjen

gagement, trust, communications, loyalty and ethics by the

Farms, Tradition Development Corp., and the Minnesota

firms with which they do business, and in the case of Builder

Green Path Leadership Award for innovation in energy

and Remodeler of the Year, also by their customers.

efficient home building or remodeling that went to Brandl

Housing First Minnesota honored Rep. Pat Garofalo as

INDUSTRY IN ACTION

Anderson Homes, Inc.

follow us on facebook @projectbuildmn Rep. Pat Garofalo accepts the award for 2018 Legislator of the Year.

BUILDING A BETTER FUTURE Housing First Minnesota President Tom Wiener congratulates 2018 award winners.

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HOUSING INDUSTRY NEWS

| 11

INDUSTRY IN ACTION

Green Path Building Conference Area Leaders Talk About Going Green in the Neighborhood Continuing Education for MN + WI Residential Builder Contractors, MN Building Officials, & MN Realtors

City Sustainability and Green Initiatives Several city leaders gave insight into how they feel the building community can work together with city leaders to achieve green initiatives at the Minnesota Green Path Building Conference in Nov. 2018. Overall the

“We have unique challenges out there as a growing city. This is not on the front burner of our council, so I encourage you to reach out to us and make it more of a priority; our door is absolutely open.”

Luke Hellier, LAKEVILLE CITY COUNCIL

consensus was collaboration and innovation.

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From left to right: Dan Roe, Luke Hellier, Shawn Nelson, Mary Guiliani Stephens

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“We have to be adaptable to what’s out there, and we need to not have rigid sets of rules and procedures that doesn’t allow that to happen. We need a great community with all of the assets.”

Dan Roe, ROSEVILLE MAYOR

The Green Path Building Conference was held at The Champions Club in Minneapolis.

How Can You Get Engaged in the Housing Movement?

1

Sign up for housing news emails: HousingFirstMN.org

2

Follow us on Twitter: @housingfirstmn

3

Become a subscriber: HousingFirstMN.org

4

Contribute news stories: info@HousingFirstMN.org

Learn more about Minnesota’s Green Path Program at

MNGreenPath.org

“We need to be open to new ideas and ready for them, allow builders and developers to innovate, and not stand in the way with unnecessary regulations.”

Shawn Nelson, BLOOMINGTON CITY COUNCIL MEMBER

“This really is going to be consumer- and market-driven. It’s paying attention to what’s happening in the market. What are the barriers to implementing some of these things? We need to know those things.”

Mary Guiliani Stephens, WOODBURY MAYOR

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HOUSING INDUSTRY NEWS

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Minnesota Builders and Remodelers Show Slated For Feb. 13

Over 725 builders and remodelers attended the 2018 Builders and Remodelers Show.

The Builders and Remodelers Show (BRS), an annual trade show for licensed builders, remodelers and registered contractors in Minnesota, will take place at the Minneapolis Convention Center on Feb. 13.

The show, put on by BATC-Housing First Minnesota, features new products and services from hundreds of exhibitors in the residential construction industry.

Exhibitors range from countertop to lighting to warranty service providers, among others. The breadth of exhibitors is one of the reasons builders and remodelers are drawn to the show, according to Nicole Coon, show manager for BRS. “There’s so much for builders and remodelers to explore at the show,” said Coon. “We hear time and time again how beneficial it is to have so many vendors under one roof.”

The relaxed, interactive

atmosphere of BRS makes it easy for builders and remodelers to visit with vendors in a low-pressure environment.

“It’s always fun to connect with those you work with and maybe find new opportunities,” said Kelly Davert, 2018 show exhibitor and general manager for Mingle, a kitchen and bathroom design showroom in Plymouth. “It’s all here, sort of a one-stop-shop if you will.”

“We hear time and time again how beneficial it is to have so many vendors under one roof.”

Nicole Coon,

BRS SHOW MANAGER

Getting a first-hand look at the latest products and services is another enticing draw, with 98

percent of attendees saying it is one of the main reasons they attend, according to Coon. Exhibitors who register their new product or service are marked with a special booth flag and listed on an interactive floorplan.

Robert McNearney, owner of McNearney Custom Homes Inc., has been attending the show for the past five years and uses it as an opportunity to both meet new vendors and strengthen his company’s relationships with their current vendors.

“Be open-minded,” said McNeary. “There are many opportunities to meet new people and to see new building products. This is a great chance to grow your business.”

A PRODUCT AND SERVICE EXPO

WHEN:

WEDNESDAY, FEB. 13, 2019

TRADE SHOW OPEN: EDUCATION:

2-7 P.M.

8 A.M.-3:30 P.M.

WHO CAN ATTEND: LICENSED BUILDERS, REMODELERS, ARCHITECTS, DESIGNERS & REGISTERED CONTRACTORS

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HOUSING INDUSTRY NEWS

| 13

INDUSTRY GIVES BACK

Lennar Completes Transitional Housing to Support Homeless Veteran Women

Bill Burgess (Lennar), Stephen Roche (Showcase Renovation, Inc.) and Jon Lovald (MACV) at the ribbon-cutting event.

Completed exterior of the brand-new home in Maplewood for MACV.

After months of work, the BATC-Housing First Minnesota Foundation/HomeAid Twin Cities and Lennar completed a brand-new home in Maplewood, Minn. for the Minnesota Assistance Council for Veterans (MACV). This five-bedroom home will provide transitional housing services to homeless women veterans, a population of the community that is in growing need of services.

The project was a shining example of the generosity of the housing industry. Many companies and organizations came together to donate time, talent and resources. The land for this project was contributed by an anonymous donor to the Minneapolis Area Association of REALTORS® Foundation who then transferred the lot to the BATC-Housing First Minnesota Foundation. Lennar worked with numerous trade partners that were eager to help those that have served our country.

“As we reached out to our trade partners and those associated with this project, I can’t express to you enough their willingness to contribute to such

a worthy cause and make a difference,” said Bill Burgess, president of Lennar Minnesota, at the October ribbon-cutting ceremony.

This home will provide a safe environment for homeless women veterans and sets the groundwork as they take steps toward housing stability. While in the home, residents work with MACV case managers to overcome their housing, employment and legal barriers.

This critical program gives homeless veterans the support and confidence to find success once again.

even more homeless veteran women have a safe place to heal and stabilize.

“Homeless veterans and veterans at risk of becoming homeless are going to be standing under the roof of action – the action that organizations like the BATC-Housing First Minnesota Foundation and Lennar took to create this house.”

Jon Lovald,

A Growing Need

MACV CHIEF OPERATING OFFICER

The number of homeless women veterans in Minnesota is growing, according to MACV. But, that doesn’t dishearten the organization. In fact, it motivates them. That means word is getting out that there is an organization to help.

“The number today is at 20. There are five bedrooms in this house,” said Jon Lovald, chief operating officer for MACV, at the ribbon-cutting ceremony. “You do the math; we’re taking that down by a quarter.”

With the completion of this home,

“What a homeless veteran needs is action. And today, we’re standing in front of action,” added Lovald.

“Homeless veterans and veterans at risk of becoming homeless are going to be standing under the roof of action – the action that organizations like the BATC-Housing First Minnesota Foundation and Lennar took to create this house.”

Home Building Industry Heads Back to School

$7,000

in generous donations

Pat Hegseth (Scherer Bros. Lumber Co.) discusses great careers in construction.

As the labor shortage grows, members of the homebuilding industry are hoping a little earlier education can help make a difference in getting young people interested in the trades. Housing First Minnesota’s Education and Workforce Development Committee working with Project Build Minnesota’s Outreach Committee are heading to the classroom to educate students on the great careers in construction.

“Students these days are not getting the exposure needed to see construction as a career option,” said Pat Hegseth of Scherer Bros Lumber Co. “The earlier we can get the information out to young students the better the chance we can get them excited about a job in the trades.”

Hegseth was one of the first participants in the newly created speaker’s bureau that travels to Minnesota high

14 |

HOUSING INDUSTRY NEWS

“It was great to get out there and share my own personal experience and why I love this industry,” said Hegseth. “It might only be one small group of students at a time, but that’s 20 more students that now know more about the construction industry than before.”

The speaker’s bureau is set to talk to more than 25 classrooms in the next year. While they might not see instant results, they know this is an important step in solving the industry’s labor shortage.

“We have to get through to these students and show them there are great paying jobs that do not require a four-year degree,” said Dennis Medo of Project Build Minnesota. “We hope to expand on how we can reach these students in 2019.”

Housing Gives to the Max This past Nov., supporters of the BATC-Housing First Minnesota Foundation rallied together for Give to the Max Day. Donations totaled $7,000 and will help make a major impact on the lives of individuals in Minnesota

experiencing homelessness as

went twice as far thanks to

well as veterans in need.

the Lennar Foundation. They

Several donors gave over $1,000.

These donations will help the

foundation

complete

projects in 2019.

Every

donation

made

during Give to the Max Day

generously matched donations for the BATC-Housing First Minnesota Foundation and the Minnesota Assistance Council for Veterans, up to $15,000.

To find out how your company can support the BATC-Housing First Minnesota Foundation or become a build partner:

If you would like more information on how you can participate in the speaker’s bureau or get involved, contact Dennis Medo at Dennis@ProjectBuildMN.org

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M I N N E S O T A

HOUSING INDUSTRY NEWS December 2018, Volume 2, Issue 4 PUBLISHER David Siegel David@HousingFirstMN.org EDITOR Katie Elfstrom Katie@HousingFirstMN.org GRAPHIC DESIGN Adora Vang Dawnita Parmely ACCOUNTING Janice Meyer CONTRIBUTING WRITERS Katie Elfstrom Katie@HousingFirstMN.org

Nick Erickson Nick@HousingFirstMN.org

Mark Foster Mark@HousingFirstMN.org

David Siegel David@HousingFirstMN.org

James Vagle

James@HousingFirstMN.org

ADMINISTRATIVE STAFF Kate Wigley

Renovating the House of Hope A small 800-square-foot home sits on the northwest corner of the Emmaus Lutheran Church property located in Bloomington, Minn.

Built 50 years ago as a parsonage, the home, called the House of Hope, may seem small in stature to some, but as a home to a refugee family for the past 13 years, this home has made a big impact.

“As a mother, I cannot imagine what it feels like to struggle with personal issues, separated from my child, and burdened with the need to secure a place for my child and me to live.”

Donnie Brown,

BATC-HOUSING FIRST MINNESOTA FOUNDATION MANAGER

Kate@HousingFirstMN.org

Housing First Minnesota David Siegel, Executive Director Tom Wiener, President The Housing Industry News is a publication of Housing First Minnesota. Housing Industry News is published and distributed four times per year to housing industry professionals and others associated with the home building industry. Neither the advertisers, nor Housing First Minnesota, will be responsible or liable for misinformation, misprints, typographical errors, etc., herein contained. For address change information, contact Housing First Minnesota. Suggestions, ideas and letters are welcome.

HOUSING INDUSTRY NEWS 2960 Centre Pointe Drive Roseville, MN 55113 info@housingfirstmn.org www.HousingFirstMN.org Housing Industry News is published by Housing First Minnesota Entire contents copyright 2018 All rights reserved

Housing First Minnesota is the voice for home builders, remodelers and all who are dedicated to building safe, durable homes at a price Minnesotans can afford. Housing First Minnesota was created to advance the interests of the housing industry, engage industry members, and to be the leading resource for housing-related issues in Minnesota.

Housing First Minnesota features a modern, comprehensive advocacy program that is dedicated to helping industry professionals grow their businesses. Housing First Minnesota recognizes its role as the state’s voice for the housing industry and engages industry members in advocacy opportunities related to grassroots advocacy, legislative lobbying, regulatory issues with state agencies, political elections, and events such as Housing Day at the Capitol.

Our advocacy work has never been more important. The housing industry remains under intense regulatory and political pressures that impact Minnesota homeowners’ ability to buy, build, and remodel their dream home. Housing First Minnesota supports reasonable regulations and protections, but our call for balance in rules and affordability for families is a voice that must be heard.

After so many years of service, the home is in need of some help itself.

The BATC-Housing First Minnesota Foundation and Homes by Tradition have partnered with Emmaus Lutheran Church to restore hope into the three-bedroom residence.

After renovations, the house will serve as transitional housing for women and their children who are facing severe life crises. Some of the women have been incarcerated and separated from their babies, while others are seeking mental health services struggling with chemical dependency issues or unemployment.

“As a mother, I cannot imagine

what it feels like to struggle with personal issues, separated from my child, and burdened with the need to secure a place for my child and me to live,” said Donnie Brown, BATC-Housing First Minnesota Foundation manager.

One of the bedrooms is lined with a beautiful walnut pine, and the living room has original hardwood floors which are in great shape.

Homes By Tradition will transform this home by installing new flooring, sheetrock, millwork, paint, windows, HVAC, plumbing, walkway and appliance package.

“It took a long time to get this point, of course there’s been hurdles along the way,” said Nick Dyrud, senior pastor at Emmaus Lutheran Church. “We’re so incredibly grateful as a church to be able to be a part of project like this.”

One of Homes by Tradition’s employees is also a member of the Emmaus Lutheran Church and has dedicated and volunteered his evenings and weekends to complete this project. The project is expected to be completed in February.

Want to donate a furniture package or kitchenware for this project?

Contact Donnie Brown at Donnie@BATC.org

Top to Bottom: Kitchen gutted and ready for work to begin; BATC-Housing First Minnesota Foundation manager, Donnie Brown, kicks off the house of Hope project; House of Hope before renovation.

Project supporters tour the home.

BE SEEN. ADVERTISE IN HOUSING INDUSTRY NEWS. FOR MORE INFORMATION CONTACT:

KORI MEEWES

BRAD MEEWES

612-801-9874 Kori@BATC.org

651-269-2399 Brad@BATC.org

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