2023 November/December Building Insight by BIAW

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Bill Connor

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EDITORIAL STAFF COMMUNICATIONS DIRECTOR Janelle Guthrie

FEATURED

CONTENT SPECIALIST Hannah Cassara

12 BIAW’s 2024 legislative priorities: Slaying Houszilla

VISUAL DESIGNER Lena Anderson

Despite historic success during the 2023 legislative session, homebuilders continue to battle the two-headed monster responsible for destroying the American Dream for thousands of Washington residents.

BIAW MANAGEMENT EXECUTIVE VICE PRESIDENT Greg Lane

18 2023 BIAW Fall Board Meeting

EDUCATION & WORKFORCE DEVELOPMENT DIRECTOR Al Audette

Meet BIAW’s newest Hall of Fame inductee, 2023 Builder, Remodeler and Associate of the Year award winners, and the 2024 Senior Officers.

COMMUNICATIONS DIRECTOR Janelle Guthrie MANAGING DIRECTOR OF EXTERNAL AFFAIRS Jan Himebaugh

IN THIS ISSUE

15 Building Leaders Summit

ROII DIRECTOR Jenn Kavanaugh

4 President’s message

16 2023 Year in Review

ASSOCIATION SERVICES DIRECTOR Brenda Kwieciak

6 Executive Vice President’s Message

22 Start the year off right with ROII

7 New Certified Builder

24 Local Happenings

8 Year-End Economic Update

26 Safe habits on and off the jobsite

MANAGING DIRECTOR OF OPERATIONS Stephen Hyer

GENERAL COUNSEL Ashli Tagoai

NAHB Area 15 Leadership Conference, Oct. 18-20

Noah Blanton, WFG National Title

For editorial inquiries, contact Hannahc@biaw.com Interested in advertising in Building Insight? Contact communications@biaw.com www.BIAW.com Building Insight magazine is published on behalf of the Building Industry Association of Washington by Print Northwest.

ON THE COVER

10 Spike Appreciation Month

Jay Roberts of Cascade Custom Homes and Design, Inc., is installed as BIAW’s 2024 President during the Annual Installation and Awards Gala held during the 2023 Fall Board Meeting at Suncadia Resort on Nov. 7.

14 In Memory

WE’D LOVE TO HEAR FROM YOU

@BuildingIndustryAssocWA

As always, we want to hear from you! We invite you to take a quick survey about your thoughts on Building Insight. Happy reading!

@biawofwa

@BIAofWA

Building Industry Association of Washington

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President’s message As my year as your BIAW president draws to a close, I’m grateful for the opportunity to serve you this year. Thank you for welcoming me to your local events and supporting me and this organization in achieving our goals. This year, I focused on family, friends and the future.

The BIAW family My first priority as your president was supporting our BIAW family by: n Getting out to visit all of our local homebuilding associations. n Encouraging more people to join our association.

Gary Wray President

n Providing leadership and mentorship to our younger members to encourage them to join our leadership at the local, state and national levels. n Advocating for our industry in the legislature, supporting our work in the courts and joining you in working to ensure our state’s building codes make sense for the thousands of people who want to own homes they can afford. I had an amazing year working with you all. I’m so proud of this association and our BIAW family.

Our friends As chair of the Island County Habitat for Humanity Board of Directors, I know how important our friends at Habitat for Humanity are to our communities, providing ownership and opportunity to families who might otherwise never own a home of their own. I’m proud to see the work all of our local associations do to support Habitat for Humanity and other vital community partners.

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As BIAW members and members of our local homebuilding associations, you all give so much to your communities and our “friends.” Thank you for your leadership and community spirit.

Building our future workforce When I talk about our future, I’m not just talking about the future of our association. I’m also talking about the future of our industry. In the legislature, in our schools, in our communities and in our communications, BIAW has demonstrated a strong commitment to building our future workforce. I’m excited about all the work you’ve been doing to encourage the next generation of homebuilders and remodelers to join our industry. In the legislature, we successfully passed a bill promoting construction as a solid pathway to graduation. Now students can get credit for demonstrating skills in the trades on their way to graduation. And across our state, local associations worked hard this year to reach out to students and young adults to encourage them to join the residential construction industry. Check out October’s Building Insight for details on that and profiles of all the students and projects that won funding from the BIAW and our Washington Home Builders Foundation. And on that note, we’ve reinvigorated the Washington Home Builders Foundation. We’re applying for and receiving grant funding and stepping up our marketing so we can fund even more scholarships and grants.

As you consider your end-of-year giving, be sure to remember the foundation and contribute any way you can!

n For all you do to support the American dream of home ownership in Washington.

Now as I prepare to join my colleagues on the Past President’s Council, I want to thank you all—my BIAW family:

Our future leadership is strong, and I know we’re in good hands. Happy holidays and here’s to a great 2024!

n For inviting me to your locals. n For supporting statewide efforts to meet our goals this year.

The competition has now ended. BIAW’s first-ever retention incentive program ran from July 1, 2023 – October 31, 2023, and awarded chips to members who helped retain their 2021 Membership Monopoly Recruits. Chip totals for both individual players and local associations will be announced in December through BIAW’s social media and Hammer & Nail newsletter! Each participant will also be directly notified.

Membership

Retention

Royale

Members can cash chips in for BIAW Swag Shop Gift Cards. For all 2021 Membership Monopoly Players:

Don't leave membership renewal Local associations can cash chips in Questions? for travel reimbursements to BIAW Please contact Member Resources Manager to CHANCE and NAHB events/meetings. Raelle Vitali at raellev@biaw.com.

New members are most likely to cancel their HBA membership in the first 1-2 years after they've joined Help members that joined in 2021 BEAT THE ODDS b focusing on retention efforts and win chips! b u i l d i n g i n s i g ht | n ove m b e r/d e cembe r 2 0 2 3

Executive Vice President’s message As we approach the end of another remarkable year, it’s a great time to reflect on the numerous milestones we’ve achieved together this year. BIAW had many successes in 2023, thanks to the unwavering dedication of our members and staff.

Advocating for our industry BIAW’s External Affairs team led the way to historic results in the 2023 legislative session, focusing directly on increasing the state’s overall housing supply and removing some of the barriers that add unnecessary costs to the homes our members build.

Greg Lane

Executive Vice President

In this year’s session, we championed victories regarding permit reform, middle housing, expanded ADU construction, workforce development and more. We also played defense and blocked some potentially very bad bills that would have negatively affected how our members do business and added thousands to the price of a new home. We also celebrated some successes fighting back against the State Building Code Council’s (SBCC) stringent new building codes, including the delay of implementing the new codes to March 15, 2024, giving the industry more time to digest these changes, train up and comply. As we turn the calendar to a new year, with it comes a new legislative session and a new set of battles as we advocate for our members and industry. We look forward to again working closely with you, our members, to ensure our industry’s voice is heard.

ROII continues to deliver BIAW’s retrospective rating program, ROII, achieved another historic milestone this year, earning a 46% refund on the first adjustment for the 2021 plan year—the highest in program history. Over $20 million was distributed to member companies across Washington!

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ROII continues to prove year after year that it’s the best retro program in Washington by delivering unmatched returns to its participants. ROII’s success goes beyond its participants— BIAW received $2.5 million from ROII refunds, and all 14 local home building associations across the state shared an additional $2.5 million. These funds make it possible to deliver value to our members through advocacy, education, events and other programs at both the state and local levels.

Thank you, leadership and staff As we welcome a new year, we welcome a new set of senior leaders for our association and bid farewell to the outgoing leadership. I would like to personally thank 2023 Immediate Past President Joseph Irons and 2023 Second Vice President Luellen Smith for their unwavering dedication to BIAW and our industry. Their service to our association has been invaluable, and we express our deepest gratitude for their commitment. As we celebrate this year’s victories, it’s crucial to acknowledge the hard work and dedication of our entire BIAW leadership and staff. Their tireless efforts behind the scenes have been instrumental in making our initiatives a reality. I can’t wait to see what we can accomplish together in 2024. Looking ahead to 2024, our Winter Board Meeting is just around the corner, Jan. 29-31, with our annual Hill Day and Legislative Reception on Tuesday, Jan. 30. I look forward to seeing many of you there and continuing to work together on our association’s goals for the new year. Thank you for being a member of BIAW and for all you do to promote the American Dream of homeownership for Washington families. I wish you all a joyous holiday season and a happy new year!

Aaron Helmes of Generation Homes Northwest becomes newest Certified Builder by Hannah Cassara Content Specialist

Clark County’s Generation Homes Northwest was founded in 2008 by owners Aaron and Mary Helmes. Ever since, their vision has been to combine superior features, craftsmanship and customization in every home they build. “We pride ourselves on providing outstanding customer service, with quality, communication and integrity as our core values,” Aaron said. Their team has decades of combined experience building homes in Southwest Washington, and they consistently put that experience to work for their clients. They carefully walk each client through the entire process,

from choosing and customizing the perfect floor plan to selecting the features that truly make a one-of-a-kind home. Members of the Building Industry Association of Clark County (BIACC), Generation Homes Northwest has participated in the Parade of Homes and has won several BIACC awards, including a Building Excellence Award in 2023. Congratulations to Aaron Helmes and Generation Homes Northwest for measuring up and becoming our next Certified Builder! To learn more about Generation Homes Northwest, visit generationhomesnw.com. If you’re ready to prove you measure up, start your application today at BIAWCertifiedBuilder.com.

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Inflation turns the corner? by Noah Blanton President, Oregon Direct Operations, WFG National Title Insurance Company

We’ve been fooled before. Is this time different? In June, inflation bottomed out at a 3% annualized rate, falling for 12 consecutive months from a high of over 9%. But in July, inflation began increasing again, and the conventional wisdom that inflation had been conquered came into question. This uncertainty, among other factors, drove 30-year mortgage rates to 23-year highs in the following months, with rates topping 8% on average in October. Falling inflation returned in October, reaching 3.2%, and that trend is likely to continue this time. (See Figure 1) The consumer and labor markets are finally showing signs of the impact of 18 consecutive Fed rate increases. The policy lag on monetary policy change is 12-24 months, so we are just beginning to see the influence of this rate-raising cycle. Expect further results in the coming months to continue to drive inflation lower. Additional positive indications are the alignment of actual inflation with consumer expectations. (See Figure 2)

Figure 1 — Inflation Rate

No longer is there a gap between what consumers experience and the reality of inflation. Expectation meeting reality means the consumer can make decisions with increasing confidence.

What will the Fed do? Talk of rate cuts is premature. While there are signs inflation is permanently abating, anticipating quick rate cuts will likely disappoint. It is tempting to believe rate cuts are just around the corner; however, it does not

Figure 2 — Actual to Consumer Expectations

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align with the Fed’s strategy for nearly 35 years. (See Figure 3) Before 1989, the Fed raised and lowered rates relatively rapidly. They acted upon data quickly, often prompting action when new data became available but lacked context. The Fed now pauses at the top or bottom of a rate-raising/lowering cycle for a prolonged period, allowing the policy lag to become evident in the data. On average, the Fed will leave rates

Figure 3 — Fed Funds Inflation Rate

unchanged for approximately 12 months at the top of the cycle. Expect rate cuts no earlier than 3Q24. It will likely be due to significant economic deterioration if they occur before. While the forecast for rate cuts remains several quarters out, recession is likely much closer. The yield curve inversion has nearly completed its cycle (gone from negative back to positive), and a recession generally follows. (See Figure 4) Fed rate increases have been effective at removing money from circulation, bond yields have increased significantly, and the unemployment rate, job creation, retail spending, and business investment have begun to change in meaningful ways.

Figure 4 — Yield Curve

The National Association of Home Builder and National Association of Realtors were sufficiently concerned the Fed would become a net seller of MBS that they sent a letter to Chairman

Powell asking the Fed to “not sell any of its MBS holdings until and unless housing finance markets stabilize, and Mortgage-to-Treasury spreads normalize.” Pay attention to the Fed policy concerning MBS; it significantly influences mortgage rates. Finally, watch Federal budget deficits. We are running historic and increasing annual deficits. (See Figure 6)

Figure 5 — Mortgage-Backed Securities (MBS)

While no action is expected until after the election in November, it is a pressing concern that influences long-term rates with or without a recession. Excluding COVID, annual deficits have averaged $1 trillion since 2010 and were $1.7 trillion for the fiscal year just ended. These deficits are incompatible with low rates and economic growth.

30-year rates & fiscal policy Interest rates have a more than typical influence on the current cycle due to rising from historic lows to 23-year highs in roughly 12 months. The reality of the current homeownership landscape is a desire to purchase does not translate into transaction velocity. Today, the more pressing issue is affordability, not demand. In addition to their short-term rate increases, the Fed is influencing 30year mortgage rates by allowing their portfolio of mortgage-backed securities (MBS) to expire while not purchasing replacements. (See Figure 5)

Figure 6 — Budget Deficit

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Celebrating Spike Appreciation Month by Raelle Vitali Member Resources Manager

The National Association of Home Builders (NAHB) designates November of each year as Spike Appreciation Month, a time to recognize and celebrate members who dedicate their time and support towards member recruitment and retention. Member-to-member recruitment is the largest source of HBA growth across the country, making Spikes the true builders of our association.

Spike Recognition A Spike is any current member who recruits new members. Spikes earn points for their efforts: 1 point for each new member, 1 point on the first anniversary for recruited members, a ½ point each following anniversary, and a ½ point if recruited members join a council. When a Spike earns 6 points, they’re officially part of NAHB’s recognized Spike Club—a network of Spikes across the nation focused on the growth of their associations. Top Spikes are recognized each month by BIAW through our Monthly Membership

Reports and at the BIAW Winter Board Meeting each year.

Tickets n Spike recruiters with at least 6 Spike credits and one recruit for the year get two tickets to BIAW’s exclusive Spike Party hosted annually at the BIAW Summer Board Meeting.

Swag n The Top Spike receives a gift card to an exclusive BIAW Swag Shop Line, recognizing them as the Top Spike. n The top 10 Spike recruiters and category leaders also receive gift cards to BIAW’s full Swag Shop.

n Spikes who have recruited at least one member in the current year also receive two free tickets to the Closing Spike Concert at NAHB’s International Builders’ Show (IBS) each year.

BIAW Top Spikes

Trophies

Are you curious how many Spike credits you’ve earned? When logged into your NAHB.org profile, you can directly track your Spike Credits in the “Membership Tab” when logged in.

n BIAW’s Top Recruiter of the Year gets their name added to the perpetual Top Spike trophy that travels to BIAW meetings. Replica trophies are also awarded to take home with the top recruiter or be placed at their local association. n Unique lapel pins are also provided by NAHB when Spikes achieve new levels and categories of credits.

As one of the most actively recruiting states within NAHB, BIAW has an impressive list of active Spikes. Below is the list of the Top Ten 2023 Spike Recruiters as of 9/30/2023.

Best assets for recruiting new members The local association’s council meetings and networking events are Bob Disney’s best tools for recruiting new members,

Member

Company

Local Association

Levi Snyder

Monogram Homes

Spokane Home Builders Association

Dee Coppola

Wet Apple Media

Kitsap Building Association

Sandra Teal

Service Master by Compass Construction, Inc.

Spokane Home Builders Association

Caleb Blanton

New Tradition Homes

BIA of Clark County

Tracy Doriot

Doriot Construction

BIA of Clark County

Gary Questad

New Tradition Homes

HBA of Tri-Cities

Bob Disney

Disney & Associates, Inc.

Kitsap Building Association

Nichole Banegas

Gale-Rew Construction, Inc.

HBA of Tri-Cities

Ryan Moore

HUB International

Central Washington HBA

Bobby Graham

NW Roots Construction, LLC

Central Washington HBA

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2023 Recruits

as they are the best way to display the connection and collaboration that come with membership. It also creates a great space for sharing further information and benefits like ROII or BIAW’s Health Trust. Levi Snyder uses his trade agreements to help recruit new members by promoting the professionalism and reputation that comes with being a member of a builder’s association and doing business with other members. Ryan Moore says when in doubt, turn to the staff at your local and state association. Moore shares that his local association staff really go above and beyond to ensure recruiters have all of the tools and resources needed to make recruitment simple and easy. Caleb Blanton also agrees with this sentiment of using the knowledge and time of your local staff to help solidify memberships. The 3-in-1 membership value is also a strong pitch point.

To all our active Spike recruiters:

Our appreciation for your hard work and dedication is immeasurable. BIAW would like to extend a heartfelt THANK YOU for all that you do.

Why recruitment matters “Membership is the heart of the association,” Ryan Moore of HUB International said. “Without members, there is no association, and none of the benefits such as advocacy, industry knowledge, savings, and recognition would exist.”

“The more companies and individuals we can help join, the more it strengthens us all,” says Caleb Blanton of New Tradition Homes. “Adding new members strengthens our voice as the building industry locally, across the state, and even nationally.”

Levi Snyder with Monogram Homes shares that becoming a member helps better their businesses and working relationships by gaining access to the education and resources provided by the membership of the association. Recruitment betters not only the association but also the community in which members operate.

Bob Disney of Disney and Associates states that adding new members helps diversify the community of subject matter experts within the building industry. New members bring new ideas, experiences and expertise that can be shared with others to help better the association as a whole.

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Slaying Houszilla, the two-headed monster of Washington’s housing crisis by Jan Himebaugh Managing Director of External Affairs

Meet Houszilla: the two-headed monster attacking housing affordability in Washington. Despite historic success during the 2023 legislative session, homebuilders continue to battle the monster responsible for destroying the American Dream for thousands of Washington residents.

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Houszilla: The Two-Headed Housing Monster! A fierce creature fueled by costly challenges and supply snarls, wreaking havoc on the dreams of affordable and accessible homes!

Cost Cruncher & Supply Snarler

The Cost Cruncher head represents the hidden costs that drive up the prices of homes in Washington, while the Supply Snarler head represents the barriers to basic housing supply.

Join the fight and help slay the monster!

Receive calls to action by signing up for our text alerts by texting “BIAW” to 50457. Keep an eye out during session for more ways to help and be involved!

After years of unrestrained access to our housing market, Houszilla has ensured new homes in Washington are more than $200,000 higher than the rest of the nation. In the 2024 legislative session, BIAW will attack both Houszilla heads head-on (see what we did there?) and work to restrain the threats impacting housing costs and increase access to homeownership for the people of our state.

To slay the Cost Cruncher head, the legislature needs to address the financial strain hidden costs have on residents and builders by: Pulling the impact fee fangs Impact fees are a blackhole of added costs, significantly affecting the price of new homes in Washington, adding up to $40,000 per home.

To take on the Supply Snarler head, the legislature needs to finish the job they started in 2023 by: Muzzling the lot-size snout This can be accomplished by allowing a lot to be split once and up to six units on the new lot.

Unplugging the ADU restriction ears Allow detached ADUs in all areas of the state so that all our communities, including our rural neighborhoods, have housing options for workers, families and others.

Taming the Wildland Urban Interface (WUI) mane The current WUI denotes mostly urban growth areas as high fire risk, which reduces the amount of buildable land in the exact places we need to build homes.

Poking other zoning restriction eyes out Addressing underlying zoning to allow for transitoriented development without other onerous requirements; and ensuring that the codes at local governments are density first instead of working against the required zoning.

Removing the rose-colored energy code glasses The proposed energy code adds roughly $30,000 to the cost of a new home with gas appliances—and a minimum of $9,200 for homes with electric heat pumps. Let’s remove the rose-colored glasses. Stop pretending these changes will pay off in a reasonable timeframe and don’t price families out of housing access.

Removing property theft horns Jobsite theft and lack of accountability for property crime are adding more to the cost of new homes. Property crime is not a victimless crime.

Smoothing workforce wrinkles Builders need a workforce to build homes for our neighbors, young workers need better access to meaningful job opportunities in residential construction, and we need to iron out the mess that is Washington’s apprentice program.

Break the citation delay chains Delayed safety citations impact safety and job costs. L&I should notify builders of violations more quickly so we can correct them and keep our workers safe.

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Lovingly Remembered

Cary Butler Lower Columbia Contractors Association Butler Construction Services, Inc.

Craig Chamberlin Spokane Home Builders Association

Lary Coppola

Doug DeForest

Harlan Douglass Spokane Home Builders Association

Kitsap Building Association

Olympia Master Builders

ServPro of Spokane

Longtime BIAW Director and KBA Director

Executive Officer of OMB for 15 years

Allen Dykes

Bob Helm

Bill Henshaw

Nick Isenhart

Spokane Home Builders Association

Kitsap Building Association 1980 KBA President

Building Industry Association of Whatcom County

Windermere Real Estate/ Whatcom County - Commercial Division

Tiger Construction

Ken Martin

Janice Hall Matteo

Ann McLaren

Wayne Moritz

Building Industry Association of Clark County

Master Builders Association of Pierce County

Skagit/Island Counties Builders Association

Owner of Northwest Lien Services

Washington and Clark County Association of REALTORS® leader

Life Director at MBAPC

Oak Harbor Gutter Service

Robin Nolan

Gary Patterson

Monty Smith

John Sullivan

Master Builders Association of King and Snohomish Counties

Master Builders Association of Pierce County

Building Industry Association of Whatcom County

Master Builders Association of Pierce County

2018 MBAKS Sandy McAdams Woman of the Year and past Professional Women in Building Council chair

Past MBAPC President

2015 BIAW President

Olympic Landscape

SHBA Builder Director and active member of SHBA’s Government Affairs Committee

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SHBA Past President and SHBA Hall of Fame inductee

Building Leaders Summit exceeds peak expectations by Janelle Guthrie Communications Director

The 2023 Building Leaders Summit gave homebuilding association staff and member leaders new tools to elevate their skills and expand their knowledge. Held Oct. 18-20 at the Radisson Hotel Seattle Airport, the summit drew nearly 80 staff and member leaders from across the National Association of Home Builders’ (NAHB) Area 15, including Idaho, Oregon, Alaska and Ohio. The event featured a day and a half on topics ranging from how to use AI to improve your association’s efficiency and supporting your foundation to running effective meetings and developing workforce development programs.

Keynote speaker Mark Mohammadpour, Owner and Chief Well-being Officer of Chasing the Sun, provided lessons in empathy from the Apple TV hit Ted Lasso and offered workplace well-being tips to help attendees improve their employee retention and recruitment efforts.

Speakers came from BIAW, NAHB, local homebuilding associations and other organizations to provide attendees with the best knowledge available. State and national senior officers also joined the summit, sharing their wisdom and networking with attendees. Buoyed by great feedback from attendees, BIAW and NAHB plan to host the next Building Leaders Summit in 2025.

NAHB First Vice Chairman of the Board Carl Harris (c) joins Master Builders Association of Pierce County member Ryan Bittenbender (r) of Cornerstone Specialties and others for a roundtable discussion on homebuilding association issues on day two of the summit.

Lindsay Brown, Executive Officer for the Central Washington Home Builders Association, taught summit attendees how to harness the promise of artificial intelligence (AI) to increase efficiency in home building associations.

Master Builders Association of King and Snohomish Counties (MBAKS) Executive Director Jerry Hall (l) chats with BIAW President Gary Wray (c) and MBAKS member Mike Nykriem (r) of Kirkland Builders Group during a break at the summit.

Kari Young of Forward Fundraising (l) hosted a roundtable with homebuilding association staff and members at the summit on firing up fundraising for your foundation. Nova Nyitray from the Kitsap Building Association (c) and Sarah Neibert from the Building Industry Association of Clark County (r) joined the discussion.

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2023 YEAR IN

REVIEW

Gary Wray becomes 2023 BIAW President with a focus on friends, the BIAW family and the future workforce.

With Washington facing a growing housing crisis, BIAW’s Executive Affairs team introduces a number of legislative reforms to reduce the cost of building homes and increase the availability of new housing for Washington families.

JANUARY ROII reaches a historic milestone, earning a 46% refund on their first adjustment for 2021 and announces plans to distribute $20 million in refunds to plan participants in 2023.

BIAW and Master Builders Pierce both win NAHB Association Excellence Awards for their communications and public relations work. BIAW unveils the Washington Housing Affordability Index, focusing on the median cost of ALL homes in Washington, new and existing supply.

BIAW launches a series of “Building Victory” campaign workshops to train candidates and campaign workers for success.

JUNE

Nearly 60 BIAW members joined President Gary Wray, Executive Vice President Greg Lane and the BIAW External Affairs team in Washington, DC, to meet with Washington’s Congressional Delegation during NAHB’s 2023 Legislative Conference.

MAY BIAW General Counsel argues on behalf of Washington builders in unconstitutional document fee appeal before the Division II Court of Appeals.

BIAW celebrates the 2023 Excellence in Remodeling Awards, announces a new strategic plan and welcomes Ted Clifton of Clifton View Homes and Zero-Energy Plans, LLC to the BIAW Hall of Fame at the BIAW Summer Board Meeting in June.

JULY In July, BIAW releases a new report on Washington’s Housing Supply Shortage, estimating a statewide need for more than 250,000 new housing units and detailing the shortage by county.

Builders enjoy a historic legislative session focused on housing affordability and availability. Legislators pass significant permit reform, middle housing, ADU expansion, graduation pathways to the trades and more.

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BIAW’s workforce development task force chair joins leaders at the Seattle Wood Tech Center in celebrating a $750,000 grant from the Lowe’s Foundation Gable Grants to support training for new and experienced carpenters.

AUGUST

SEPTEMBER

BIAW awards $79,500 in scholarships and grants to 16 students and 13 construction trades programs across Washington.

State Building Code Council approves costly and cumbersome new energy codes and delays implementation until March 2024.

BIAW goes solar, adding nearly 180 solar panels to the roof of its Parkside Building and replacing 14% of the electricity used in the building with clean, renewable energy.

NAHB’s legal committee grants Washington $10,000 to support its document fee lawsuit appeal.

BIAW and a coalition of more than 20 plaintiffs representing trade associations, unions, businesses and homeowners band together to challenge Washington’s costly new energy codes in Thurston County Superior Court.

Members and staff from BIAW and Washington home building associations join nearly 70,000 other residential construction professionals in Las Vegas for the International Builders Show. BIAW Past President Bob Camp chaired the IBS planning committee.

FEBRUARY After a Washington Supreme Court decision adds uncertainty to liability limits in Washington, BIAW updates its members-only Contract Subscription Service documents with necessary changes. Fashion-forward members get access to the new BIAW Swap Shop. A percentage of all sales goes to the Washington Home Builders Foundation for scholarships and grants to support trades education.

BIAW launches the Cut the Costs 2.0 digital advertising series to raise awareness of the hidden costs of home building and encourage Washington residents to join the fight in advocating for common sense.

BIAW members hold their first in-person Hill Day and legislative visits since the pandemic and welcome a record number of legislators to their annual Hammers and Highballs Legislative Reception, including House Speaker Laurie Jinkins.

APRIL

BIAW and NAHB host nearly 80 home building association member leaders and staff for the Building Leaders Summit in SeaTac.

OCTOBER

BIAW teams up with WFG National Title Insurance Company’s Noah Blanton to offer quarterly economic forecasts to assist members in making decisions for their businesses.

MARCH

BIAW installs 2024 President Jay Roberts and senior officers during the Installation and Awards Gala at the BIAW Fall Board Meeting in November. Kevin Kartak of AAA Kartak joins the BIAW Hall of Fame.

State Building Code Council finalizes rulemaking on state energy code, despite more than 1,200 messages urging them to reject the new codes. BIAW blasts decision as violating federal law and threatening energy security for new homeowners.

DECEMBER

NOVEMBER BIAW members celebrate Builder, Associate and Remodeler of the Year Awards. Congratulations to Builder of the Year Kent Arola, Associate of the Year Luellen Smith and Remodeler of the Year Traci Tenhulzen.

BIAW Association Services Director Brenda Kwieciak celebrates 30 years of service to BIAW!

ROII staff joins the last of the 30+ local association events and golf tournaments they’ve sponsored or participated in this year. b u i l d i n g i n s i g ht | n ove m b e r/d e cembe r 2 0 2 3

Kevin Kartak becomes 41st BIAW Hall of Fame inductee by Janelle Guthrie Communications Director

At the 2023 BIAW Fall Board Meeting Nov. 6-8 at Suncadia Resort, BIAW honored Kevin Kartak of AAA Kartak Glass & Closet as the 41st inductee into the BIAW Hall of Fame.

Master Builders Association of King and Snohomish Counties (MBAKS), the Skagit/Island Counties Builders Association (SICBA) and the Master Builders Association of Pierce County.

local level, including BIAW’s Associate of the Year in 2014. He’s not only known for his steady leadership and expertise in recruiting new members, but he’s also a prolific sponsor and generous supporter who uses his time and money to advance our industry and numerous community organizations. More than just a supporter, he’s often a leader in these endeavors, including serving as MBAKS’ Rampathon captain, outreach leader to the Echo Glen Juvenile Detention Facility and Good News Club leader and teacher at Kingswood Elementary. Kartak also plants at least two trees for every new jobsite his customers call him to—and in 2021, his company planted nearly 20,000 trees in honor of AAA Kartak’s 65th year of business.

Kartak is a master craftsman who grew up in the glass business his father started in 1956 to serve the residential construction industry. He was named to lead the company starting in 1985 and later expanded into designer closets and commercial storefronts and glazing. As the company prospered and grew, it survived recessions and other growing pains eventually expanding to 97 workers operating out of four Puget Sound manufacturing facilities sending quality products, glaziers and craftsmen techs to jobsites throughout the region. A member of three local associations dating back over 30 years, with more than 2,700 Spike credits, Kartak has made significant contributions to the

He was MBAKS’ Spike Rookie of the Year in 2002, then served on their board of directors from 2004-2015. Known for being both a great speaker and an inspiring leader, he chaired the MBAKS REX awards in 2006 and 2009, served as MC in 2015 then continued on as awards announcer at every other awards event from 2010 through 2017. He also served on the membership councils for both SICBA and Master Builders Pierce for many years. He became a BIAW state director in 2004 and served in that capacity through 2019, stepping up to senior officer in 2013 and 2014. For his leadership and guidance, he’s won numerous awards at the state and

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In his numerous years of service, Kartak always had a ready smile, a hearty laugh, and contagious positivity. His warm greeting helps people feel welcome. He is always ready to help a member and encourages many to engage. Many Spikes became successful recruiters thanks to his coaching. A passionate legislative and policy advocate, dedicated membership ambassador, shrewd and generous businessman and strong local, state and national leader, Kevin Kartak is the perfect addition to the BIAW Hall of Fame. Congratulations, Kevin!

2023 Builder, Associate and Remodeler of the Year Award Winners During the annual Installation and Awards Gala held Nov. 7 at Suncadia Resort, BIAW honored the 2023 Builder, Associate and Remodeler of the Year—the highest honors given by the association. Past winners voted in their respective categories for the nominees based on their contributions to the homebuilding industry, BIAW and their local association.

Kent Arola | Builder of the Year Wind River Homes, Tacoma

2024 BIAW First Vice President/Treasurer Kent Arola has owned his company, Wind River Homes, for 20 years. Arola has served as a BIAW director for 13 years and sat on several committees at BIAW and his local home builders association of Master Builders Association of Pierce County.

Associate Advisory Council’s 2023 Associate Appreciation Award Recipients BIAW’s Associate Advisory Council (AAC) recognizes outstanding associate members representing their local association, community and the building industry. Congratulations to the 2023 Associate Appreciation Award winners!

Arola has been honored with several awards, including MBAPC Recruiter of the Year four times, MBAPC Member of the Year in 2015, multiple MBAPC Remodeling Excellence Awards and BIAW Excellence in Remodeling Awards.

Brittanie Vaughn

Luellen Smith | Associate of the Year

Ryan Smith

Cashmere Valley Mortgage, CWHBA

Homer Smith Insurance, JCHBA

Rhino Wine Cellars & Cooling Systems, Issaquah 2023 BIAW Second Vice President Luellen Smith is an owner/partner in Rhino Wine Cellars & Cooling Systems with her husband, Doug. A dedicated and prolific membership recruiter, she enjoys serving in leadership at BIAW, her local home builders association, the Master Builders Association of King & Snohomish Counties (MBAKS), and the National Association of Home Builders (NAHB).

Brenda Nunes KW Nunes Group, MBAKS

Aaron Murphy ADM Architecture, KBA

Smith has been involved in numerous BIAW committees and has served in several leadership roles. She has also received multiple awards for her selfless service to further MBAKS, BIAW and NAHB. In 2024, Smith will take on the role of Chair of the NAHB Professional Women in Building (PWB) Council.

Traci Tenhulzen | Remodeler of the Year

Jeremy Dagget Rainbow Sweepers, NPBA

Sue Elkin Homeownership Center NW-Tacoma, MBAPC

Kathy Sanchez Northwestern Mutual, SICBA

Tenhulzen Residential LLC, Woodinville

Andrew Northrop

Traci Tenhulzen began her career in the building industry in 2001. In 2007, Tenhulzen started working with her husband, Michael Tenhulzen, in the remodeling business. In 2012, they strengthened their industry partnership and became co-owners of Tenhulzen Residential Design Build Remodeling.

Spokane Hardware Supply, SHBA

Kristen Mesner Spokane Teachers Credit Union, HBATC

Tenhulzen has been a highly active member of MBAKS for 25 years and a board member for the last three years. She served as the 2023 Master Builders Association of King & Snohomish Counties (MBAKS) President. She is the seventh female president of MBAKS in its 114-year history. Tenhulzen has won numerous awards, including the MBAKS Remodeler of the Year award in 2018.

If you have questions about the Builder, Associate and Remodeler of the Year awards, please contact Association Services Director Brenda Kwieciak at (360) 352-7800 ext. 113 or brendak@biaw.com.

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Introducing BIAW’s 2024 Senior Officers

President Jay Roberts Skagit/Island Counties Builders Association (SICBA) Jay Roberts, vice president of Cascade Custom Homes and Design, Inc., is a proud grandpa, father of three wonderful ladies, husband of an amazing wife and proud son of the best parents. A BIAW Certified Builder, Roberts is a state director and past president of SICBA. He serves on the BIAW Workforce Development Taskforce and Member Services Corporation. He is also vice chair of the Legislative Policy Committee. A proud Husky, Jay is involved in his community and a member of the Public Stadium Authority Board for Lumen Field and Event Center.

First Vice President/Treasurer Kent Arola Master Builders Association of Pierce County (MBAPC) Kent Arola has owned his residential construction company, Wind River Homes, for 20 years. He has served as a BIAW director for 13 years, has sat on the Washington Affordable Housing Council since 2012, and as a member of the Legislative Policy Committee since 2016, which he chaired in 2020. Arola has served in several leadership positions at Master Builders Pierce, as well as at the state and national levels. He has earned numerous awards and accolades including multiple Master Builders Pierce REX Awards, BIAW Excellence in Remodeling Awards, Master Builders Pierce Member of the Year in 2015, Recruiter of the Year four times, and is a Statesman Spike with 508 spike credits.

Secretary Cameron Kartak Master Builders of King & Snohomish Counties (MBAKS) After working his way through every department of the family business, Cameron Kartak stepped in to lead as chief executive officer of AAA Kartak Glass & Closet in January 2018. He worked in marketing, administration, manufacturing, field craftsmanship and ultimately in sales where he broke several records before becoming deputy CEO for AAA Kartak in 2017. Having grown up in the business, he has worked informally for AAA Kartak since the mid-90s but also worked his way through college as a deli worker and Subway sandwich artist. He graduated in 2013 Magna Cum Laude with a bachelor’s degree in business management from Northwest University then earned his Executive MBA from Washington State University this year.

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Second Vice President Nicole Ahola Central Washington Home Builders Association (CWHBA) As a health insurance broker for Ahola Benefit Consultants, LLC, Nicole Ahola has been active with multiple local homebuilders associations over the years. In recent years, she has served in several leadership positions and is currently vice president of CWHBA and president and chair of the Kittitas County Chamber of Commerce. She has also been involved with the BIAW Health Insurance Program since 2007.

Third Vice President Aaron Marvin Building Industry Association of Clark County (BIACC) Aaron Marvin of A.C.T. Builders, LLC, and BIAW Certified Builder, is a family-focused community leader with 30+ years in construction. He and his wife, April, have been married for nearly 18 years and have three children: Carson, Kamble and Tiko. Marvin coaches youth soccer and heads “Food+Water+Shelter,” a nonprofit providing food, education, housing, and sustainability in Malawi, Africa. Actively involved in BIACC, he co-founded A.C.T. Builders, LLC, with his dad in 2004. Marvin earned a BS in Business and Social Science with a minor in Economics from Warner Pacific College in 2004 and played collegiate soccer from 2000-2004. In his free time, he enjoys mountain biking, soccer and family time.

Immediate Past President Gary Wray Skagit/Island Counties Builders Association (SICBA) Gary Wray of Laser Construction and Development has been a member of SICBA since 1998 and a SICBA board member for nearly 12 years. Over the last ten years, Wray has served on numerous BIAW committees, including education, legal and workforce development taskforce. He was chair of the Legislative Policy Committee from 2015 to 2016 and is an active participant in the Washington Affordable Housing Council.

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Start the year off right with ROII by Jenn Kavanaugh ROII Director

Program performance This one is pretty simple—how good are retro groups at earning refunds, and do they offer side-by-side comparisons with multiple years of history? ROII provides all of our group refund history, and if you’re in another retro group, we will provide you with a comparison.

The holiday season is upon us. With the shopping frenzy at its peak, this is the perfect time to start shopping for a retro group or re-evaluate your current retro program. When evaluating which retro group fits best for your company, here are a few things to consider.

You also want to pay attention to how much of the group refund participants are actually receiving. While we can’t speak for other retro groups, we can speak for ROII, and we make our refund report front and center on our website. Below is a chart that shows the range of refunds ROII participants received and what was paid out at 1st adjustment for plan years that aren’t complete yet:

ROII participant refunds are weighted on performance, which means the better a company performs (premium compared to claim costs) for a plan year, the more refund they can earn. The low end of the range represents companies that barely qualified for a refund, and the high end represents top performers.

Program services and value Retro groups should be more than just refunds. It’s important to know what services they provide to help you earn great refunds, protect your employees, lower your upfront costs, and help you run your business more efficiently. On the right is a list of services that ROII provides in-house.

ROII GROUP REFUND HISTORY Labor & Industries Adjustments

Plan Year

1st

2nd

Final

Range of ROII Refund to Positive Companies

2021

46%

Done in 2024

Done in 2025

7.8% at 1st Adjustment

2020

45%

Done in 2024

7.7% at 1st Adjustment

2019

39.5%

42%

39.5%

13% - 36% (Avg. 34%)

2018

34%

37%

41%

21% - 56% (Avg. 53%)

2017

43%

43.5%

17% - 44% (Avg. 41.5%)

2016

38%

41%

40%

15% - 43% (Avg. 40%)

2015

34%

36%

12% - 35% (Avg. 33%)

2014

39%

37%

38%

11% - 34% (Avg. 32%)

2013

39%

40%

43%

13% - 40% (Avg. 38%)

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IN-HOUSE SERVICES Claims Assistance Every ROII participant has a dedicated claim representative that helps them through every single aspect of a claim. We anticipate what L&I or doctors will need, and we make sure they have it so they can make a decision.

Program cost Every retro program provides additional services to participants, and none of them are giving these services away for free. Any retro program that tells you otherwise is lying. The real difference is how groups structure their fees and whether certain services are included or cost extra. ROII charges 1.5% of a company’s annual L&I premium as an enrollment fee each year. The remainder of our costs are taken out of the overall group refund from L&I. Some retro groups take nothing up-front and take all of their operating costs out of the refund they get from L&I. If a retro group is contracting with a ThirdParty Administrator (TPA), their total operating cost depends on what their TPA is charging them for their services.

Program management Is the retro group managed by the group sponsor (in-house), or is the group outsourcing its management to a TPA? If they are outsourcing, how many other retro groups does the TPA manage?

Safety and Prevention ROII’s safety field representatives work one-on-one with participants to assist with high frequencies of injuries or alarming injury trends that could impact retro refunds, L&I rates, or employee productivity. Field staff assessments are personalized and specific to the needs of each participant. We don’t judge our success on how many visits we can make but on whether we have made a true impact on reducing the frequency and severity of injuries.

ROII is operated by ROII/BIAW staff and has been since our program started in 1982. We control how we operate our program, what services we offer and how to best advocate for our participants and members. We know the program and the needs of our members better than any TPA. And ROII knows the construction industry because that is who we are, and that’s all we do.

Who is my participation supporting? A business association sponsors every retro group, and every sponsor takes a piece of the overall refund to benefit their association. ROII is sponsored by BIAW and supports all 14 local home builders’ associations across the state. In 2023 alone, BIAW and our local associations received over $5 million from ROII to further these efforts. This money is crucial for BIAW and our locals to provide all of the services, advocacy and support they provide to their members and the building industry at the state and local levels.

Education It’s essential for ROII to empower our participants to have control over their own safety performance, and education is a big piece of that. We offer a variety of classes aimed at helping companies work safer, understand their own risks and run smarter, safer companies.

Transparency Last but certainly not least, how easily can you get answers to all of these questions from a retro group when asked? Or, in other words, how up-front and honest is the retro group about how much things cost, where the money goes and how they really perform? Retro is complicated, but too many groups hide behind this fact and limit the information they are willing to share or try to simplify too much. If you’re going to do a thorough evaluation of programs, you need the facts, whether they’re complicated or not.

Start the new year off right by visiting ROII.com to fill out our inquiry form at the top of the page to get started. If you have any questions or want more information about the program, don’t hesitate to contact us at enroll@roii.com or call (360) 352-7800.

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Local Happenings

1 [1] The Building Industry Association of Clark County (BIACC) recently celebrated its 2023 Home Show Awards. This year, the big winner at the GRO Parade of Homes Industry Awards was a Kingston Homes project titled “Vivid.” This home won Best Kitchen, Best Primary Suite, Best Entertainment Room, Best Landscape, Best Interior Decorating, Best Architecture, Best Floor Plan, Best Outdoor Living Space, and Best of Show, and a People’s Choice Award.

2 [2] As a part of United Way’s Day of Caring, sponsored by the Olympia Master Builders’ (OMB), Professional Women in Building (PWB) council volunteered to assemble senior food boxes at the Thurston County Foodbank Warehouse. The group assembled 300 boxes with 7,500 items in 3 hours–for a total of 10 pallets!

[3] On Tuesday, Nov. 16, EVP Greg Lane (r) installed BIACC President Chuck Neibert (c) with his wife Sarah (l) by his side at the President’s Awards and Officer Installation Dinner Meeting at The Heathman Lodge.

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4 [4] The Master Builders Association of King and Snohomish Counties (MBAKS) held its Professional Women in Building Soiree Nov. 17 at the Armada Design Center in Bellevue to celebrate the achievements of the women who continue to shape the future of the built environment. (l-r) MBAKS PWB members Darylene Dennon, Jennifer Tennyson, Kimberley Martin, Stephanie Case, Alicia MacFarlane, Luellen Smith and Jennifer Lehr

5 [5] BIAW President Gary Wray and third VP Kent Arola joined Managing Director of External Affairs Jan Himebaugh at the Washington Policy Center Annual Dinner in Spokane in September featuring a WPC After Dark! Panel with Fox News stars Kat Timpf, Guy Benson, Lisa “Kennedy” Montgomery. (l-r) Arola, Timpf, Benson, Montgomery, Wray, Himebaugh

6 [6] At the 2023 BIAW Fall Board Meeting in Suncadia, BIAW honored Association Services Director Brenda Kwieciak for her 30 years of working at BIAW. Throughout the years she has worked in a variety of roles, including managing the Building Insight magazine, planning perfect and engaging board meetings and keeping BIAW running smoothly. Thank you, Brenda!

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ROII Safety Services

Taking safety habits beyond the jobsite by Bob White ROII Safety Services Director

“

After 15 years of hunting, I had never fallen or thought of wearing fall protection, even though I worked as a professional roofer for years. But, thankfully, this time I did.

This story begins with an 18-year veteran roofer perched 20 feet above the forest floor during bow hunting season for deer. Here’s his story:

safety rule; it was just another part of getting the job done. After a few months, I did not think about it anymore. Fall protection was just an automatic task.

While sitting high in a tree stand, a three-point buck presented himself well within bow range. As I tried to raise my body enough to draw back my bow, I did not realize how far off-center I had become, and before I knew it, I was hanging just below the tree stand next to the fir tree. After 15 years of hunting, I had never fallen or thought of wearing fall protection, even though I worked as a professional roofer for many years. But, thankfully, this time I did.

After getting over the initial shock of falling, I was able to work my way back into a seated position in the tree stand. As I sat thinking about what had just happened, I began to realize the only reason I did not end up on the forest floor with possible broken bones was that my employer had instilled in me a habit that had become second nature. I also began to think about what might have happened had I not been tied off. There’s no workers’ comp out here. What if my injuries prevented me from ever working again?

Just one year before this incident, I had gone to work for a new employer. The pay was excellent, and the roofing company always had work available. The only downside was the owner had a 100% tie-off rule whenever a fall hazard was in effect. I slowly got used to the

avoided a potentially devastating injury and took with me safety habits that will remain with me for the rest of my life. At ROII, prevention is a top priority, and our mission is to help you find and implement effective safety strategies that can hopefully avoid devastating injuries. That’s why ROII offers specific safety classes free to ROII participants to help you stay at the top of your safety game. If you’re a ROII participant, you can register for any BIAW Education classes that are ROII sponsored at BIAW.com. For more information contact, ROII Safety Services Director Bob White at (360) 352-7800 ext. 109 or email bobw@biaw.com.

Fast forward to today, I look back and think about how I was reluctant to use fall protection and my frustration with an employer that was always harping about safety. Thanks to my employer, I

If you are an ROII participant and would like to receive my regular safety updates, including ideas for safety topics, please contact me at (360) 352-7800 ext. 109 or bobw@biaw.com.

Not an ROII member? Visit roii.com to learn more.

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DON'T BE CAUGHT WITHOUT HEALTH INSURANCE