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April 2021

Southern California

BUILDER The Magazine of the Building Industry Association of Southern California

• Special Tribute to General Lyon • Q&A with Industry Superstar Joan Webb • BIAOC Chapter Edition • Advocacy on the Housing Front James O’Malley Shopoff Realty Investments

: n o i t i d E e d i s In THE

Orange County

• Housing Outlook, Scott Wild, John Burns Real Estate Consulting

CHAPTER

• Legal Housing Champion Jennifer Hernandez Holland Knight

Page 31 Designed By


EFFICIENT DUAL-ENERGY NEW HOMES CAN NOW COST EVEN LESS TO BUILD

The SoCalGas® Energy Efficient New Homes Program, which offers energy efficiency rebates to builders of eligible new single-family and multi-family projects, has been updated for 2021. The Energy Efficient New Homes (EENH) Program provides energy efficiency rebates to builders of eligible new residential construction projects that exceed State of California Title 24 Energy-efficiency Standards and are equipped with qualifying natural gas appliances and controller devices. Only production and custom single-family homes and lowrise and high-rise multi-family projects built in the SoCalGas service territory and served by SoCalGas may be eligible. Cash rebates are offered for qualifying natural gas appliances. For some appliances higher rebates are available for more efficient models. Qualifying appliances include: • Natural gas water heaters • Natural gas space heaters • Natural gas clothes dryers • Qualifying clothes washers when paired with natural gas clothes dryers and water heating • Natural gas pool heaters • Thermostatic restriction valves for baths and showers when paired with natural gas water heating • Demand-control recirculating pumps for multi-family projects • Boiler controllers for multi-family projects

Cash bonuses are also offered to single-family or multi-family projects which qualify for: • U.S. Green Building Council (USGBC) Leadership in Energy & Environmental Design (LEED) Designations • U.S. Environmental Protection Agency (EPA) WaterSense-Labeled Home • California Public Utilities Commission (CPUC) Deed-restricted Property Our representatives are ready to assist builders with enrolling projects to help construct green homes and improve their bottom lines. Call 866-563-2637 or email to: NewHomes@socalgas.com Program details including rebate amounts, project requirements, terms and conditions, project worksheets and the application form are available online at www.socalgas.com/eenh

The Energy Efficient New Homes Program is funded by Southern California Gas Gompany (SoCalGas) customers and administered by SoCalGas, under the auspices of the California Public Utilities Commission. Program funds, including any funds utilized for rebates or incentives, will be allocated on a first-come, first-served basis until such funds are no longer available. This program may be modified or terminated without prior notice. The selection, purchase, and ownership of goods and/or services are the sole responsibility of customer. SoCalGas makes no warranty, whether express or implied, including the warranty of merchantability or fitness for a particular purpose, of goods or services selected by customer. SoCalGas does not endorse, qualify, or guarantee the work of any third party. Eligibility requirements apply; see the program conditions for details.

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© 2021 Southern California Gas Company. Trademarks are property of their respective owners. All rights Reserved. N21J039A 032821

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April 2021


Southern California

What’s Inside New Members

5

Chairman’s Message - Dave Bartlett

7

2021 Governing Board

8

Letter From Editor - Craig Foster

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Tribute To General Lyon

17

BILD Board Spotlight

21-27

2021 Hall of Fame Inductees

28

New Greenprint Initiative – Jeff Montejano

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ORANGE COUNTY CHAPTER ISSUE

35

BIAOC Chapter Update - Sunti Kumjim

37

BIAOC Executive Officer Update - Steven LaMotte

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Board Of Directors

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Industry Icon Special Feature: Q&A with Joan Marcus Webb, former Chief Marketing Officer, The New Home Company BIASC Team Roster

43-45 46

Advocacy - Stand Together or Fall CBIA Update

47-49 51

Game Changer in Battle

52-53

Membership Spotlights

55-59

Elected Representative Update - Assemblywoman Laurie Davies John Burns Realty Housing Outlook: The Stage is Set for a Strong 2021 in Orange County

61 62-65

Character-Capped Communication In Crisis

67

Irvine’s Healthy Outlook

69

NextGen

70-71

Building Industry Technology Academy (BITA)

72-73

Workforce Housing

75

Anaheim Emerging From The Pandemic Member Feature: Shopoff Realty Investments, William A. Shopoff, President & CEO

76-77 78

RHNA vs. Reality - Craig Foster

80-81

GSMC

82-83

Council on Sage

85

Re-Invent, Re-Focus & Re-Connect

87

BIA LA/Ventura Chapter Update

89

BIA Riverside Chapter Update

91

BIA Badly View Chapter Update

93

SoCalGas Net Zero Emissions

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Evolution in Digital Advocacy

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April 2021

Chief Editor Craig Foster BIASC Executive Vice President Editor & Production Coordinator Karissa Willette BIASC Public Affairs Manager Production Editors Randy Carver Elain Ng Kovach Marketing BIASC Reporter Laer Pearce 2021 BIASC Chairman Dave Bartlett Brookfield Residential Vice President, Land BIASC CEO Jeff Montejano Chief Executive Officer

SOUTHERN CALIFORNIA BUILDER is a copyrighted publication produced by the Building Association of Southern California. Advertising and editorial inquiries and materials should be emailed to: kwillette@biasc.org. All publication rights are fully reserved.

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WELCOME PLEASE WELCOME OUR NEW MEMBERS

FEBRUARY 2, 2021 - MARCH 26, 2021

JOIN OUR GROWING NUMBER OF INDUSTRY PARTNERS.

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Learn More at biasc.org/membership Southern California

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April 2021


PLEASE WELCOME BACK OUR

RENEWING MEMBERS JANUARY 29, 2021- MARCH 11, 2021

Al Womble - Womble Group

National Community Renaissance

Arizona Tile

New American Funding, Builder Division

Atkinson Andelson Loya et al

New West Designs, Inc.

BASF Corporation

NewBridge Development

Brookfield Residential

NewHomesDirectory.com

C9 Balloons

Noritz America Corp

Cadiz Inc.

Oakridge Landscape Inc.

California Fire Stop

Optimum Group, LLC

Cannon

p11 creative, Inc.

Capital Pacific Real Estate, Inc.

Pacific Communities Builder, Inc.

Champion Framing

Pacific West Communities, Inc.

Chapman University - Argyros School of Business & Economics

Pillar Building Group LLC

Coan Construction Co., Inc.

Powerstone Property Management

Construction Planning Services

Professional Staffing Ventures

Crestwood Communities

PulteGroup

Design Tec Inc.

QC Manufacturing Inc.

Developers Research, Inc.

Residential Design Services

Dittemore Insulation Contractors Inc

Richmond American Homes of CA

Duke Cultural Resources Management, LLC

Rick Engineering Company

Felesia Dailey/ Mutual of Omaha Mortgage

Rincon Strategies

Finance of America Mortgage, A Blackstone Company

Roy E Whitehead Inc.

Generations Escrow

Ryan Young Interiors

Geogrid Retaining Wall Systems, Inc.

Saunders Property Company

GFR Homes

Shotcrete Structures, Inc.

Gunn Jerkens

Silverwood Landscape Construction

Haynes and Boone, LLP

Smart Systems Technologies Inc

Heartland Grading, Inc.

Southern California Gas Co

HomeTeam Pest Defense

Studiopi2 Inc.

Huitt-Zollars

SunPower Corp.

Integral Communities

Sunset Design & Finishes

Jamboree Housing Corporation

SWA Group

James R. McDaniel, Inc. dba Hillcrest Construction Company

Taylor Morrison

Jensen Design & Survey, Inc.

The Resmark Companies

JZMK Partners

Trench Shoring Company

Kohler Company

True Air Mechanical, Inc.

Kompan

Trumark Homes

Latham & Watkins LLP

Utility Design Solutions, LLC

Legacy Partners

Utility Specialists Southwest

Lennar

VintageGroup

Leonard Roofing Inc.

Warmington Residential

LINC Housing

WNC & Associates Inc.

Ludwig Engineering

Woodside Homes of California Inc.

Manning Homes

WSH Management, Inc.

McGee Contracting, Inc.

JOIN OUR GROWING NUMBER OF INDUSTRY PARTNERS. Southern California

Learn More at biasc.org/membership BUILDER | April 2021

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General William Lyon ... A man who transcended from home building to become a nationwide leader, philanthropist and the epitome of the American dream. From early beginnings, through the military, into home building and beyond, General Lyon’s goal was to extend that dream to as many Americans as possible by providing home ownership with a quality home. We are pleased to announce  that Building Industry Association of Southern California will be holding our grand board meeting at the Lyon Air Museum in October.

A True Legend... He Soared! Jeff Montejano CEO/BIASC Craig Foster COO/BIASC

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B I A S C Chairman/ C E O’s Message:

Voice

The of the Industry BIASC always been a firm believer that if you don’t tell your story, someone else will tell it for you. This is especially true for the homebuilding industry, which is why we have made it a priority to ensure that the voice of our members is heard loud and clear. Over the last several years, BIASC has implemented new and innovative ways to amplify the voice of our industry on a larger scale. This includes our highly effective digital advocacy program. Since its inception, BIASC’s digital advocacy campaigns have generated over 150,000 emails from our members to local, regional, and state elected officials. This has allowed us to communicate on a massive scale regarding the importance of protecting the homebuilding industry from new policies that would harm our members and worsen the state’s dire housing crisis. Through our media outreach efforts, BIASC has been highly proactive in generating a greater level of public awareness regarding our industry’s vital importance. Just recently, BIASC garnered extensive visibility for the homebuilding industry with the publication of three insightful guest commentaries that appeared in digital and print media outlets throughout Southern California. BIASC had two guest commentaries recently featured in a variety of publications, including the Los Angeles Daily News, Orange County Register, Riverside PressEnterprise, and the San Bernardino Sun, just to name a few. In our column “Increasing California’s Housing Supply Will Require Three Major Steps”, we outline some

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Dave Bartlett

2021 BIASC Chairman VP, Land Entitlement, Land & Housing Development Brookfield Residential

Jeff Montejano

BIASC Chief Executive Officer

of the major hurdles that prevent homebuilders from building new housing in California. This includes rampant CEQA abuse, the recently enacted Vehicle Miles Traveled regulations, and the failure of many local elected officials to stand up to anti-housing NIMBY forces. In our most recent column, “New Greenprint Initiative Threatens to Undermine Regional Housing Efforts”, we discuss the creation of a farreaching database of private properties across Southern California that has raised serious red flags, particularly when it comes to potential abuse by forces hostile to new housing. The Orange County Register also recently featured an excellent piece co-authored by BIASC Orange County Executive Officer Steve LaMotte, and Adam Wood, Chief Administrator for BIASC’s Building Industry Legal Defense Foundation. In their column “Recent Lawsuit May Be Game Changer in Battle Against Cities Hostile to New Housing”, Steve and Adam go into detail about a $100 million lawsuit filed by Lennar Homes, along with the property owners of Westridge golf course, against the city of La Habra relating to the city’s efforts to derail a proposal to create desperately needed new housing for the community. With California’s dire lack of attainable housing continuing to hang like an economic and social albatross, local jurisdictions across the state will undoubtedly be paying close attention to this case. These are just some examples of how BIASC is working to amplify the voice of our members. Rest assured that regardless of the challenges we may face, we will continue these efforts with the same passion and vigor that BIASC is known for.

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BIA of Southern California

GOVERNING BOARD MEET THE 2021 BIASC GOVERNING BOARD

LEARN MORE ABOUT BIA OF SOUTHERN CALIFORNIA AT BIASC.ORG. DAVE BARTLETT

TOM GRABLE

MICHAEL BATTAGLIA

CHRIS EDGAR

PETER VANEK

MARK HIMMELSTEIN

BIASC VICE CHAIR

BIASC VICE CHAIR

BIASC CHAIRMAN

BIASC IMMEDIATE PAST CHAIRMAN

MIKE BALSAMO

STEVE SCHUYLER

RANCHO MISSION VIEJO

IRVINE COMPANY

MIKE GARTLAN KB HOME

JONATHAN WELDY MERIDIAN LAND DEVEOPMENT COMPANY

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CHARLES GALE METROPOLITAN WATER DISTRICT

BIASC VICE CHAIR

BIASC VICE CHAIR

GREG MCWILLIAMS FIVE POINT

JENNIFER HERNANDEZ HOLLAND & KNIGHT

DAVE LITTLE

MIKE TAYLOR

PARDEE HOMES

PARDEE HOMES

NICOLE MURRAY SHEA HOMES

ALAN BOUDREAU BIASC SECRETARY & TREASURER

JEREMY PARNESS LENNAR

ERREN O’LEARY LEWIS GROUP OF COMPANIES

RANDY RICHARDS

WES KEUSDER

RELIABLE WHOLESALE LUMBER

KEUSDER HOMES

OUTDOOR DIMENSIONS

JEFF MONTEJANO

CRAIG FOSTER

RICK WOOD WOOD CONSULTING

VALERIE HARDMAN

BIASC CEO

Southern California BUILDER | THANK YOU FOR YOUR LEADERSHIP

BIASC COO

April 2021


Letter From The Editor/ Operations Update:

Craig Foster

BIASC Chief Operating Officer

Welcome to the fifth edition of Southern California Builder. This issue is loaded with powerful content for your reading pleasure. Our inside feature focus for this edition is on our Orange County Chapter – but as you’ll see, there’s much more. This edition features a Tribute to General William Lyon, a champion for the home building industry. Nearly a year after his passing, we remember and recognize the General for the great homebuilder and legend that he was; a man who did so much for our region and our industry in so many ways. I cannot thank his son, Bill H. Lyon, enough for his time and assistance in putting our tribute article together and for the great photos that he supplied to us. We appreciate all your help and insight, Bill. Also included in this edition is a special interview with Joan Marcus Webb of The New Home Company. Joan shares many business and personal details of her career and life, so please enjoy this true insight into one of the BIASC’s newest icons. Speaking of true insights, don’t miss the Q&A with BILD’s attorney, Jennifer Hernandez, the 2021 Economic Outlook by Scot Wild of John Burns Real Estate Consulting, and Shopoff Realty Investments Vice President James O’Malley’s deep dive into why advocacy is important for our builders, and much more.

As always, I need to recognize my team that is so instrumental in helping me put out a quality, relevant and entertaining publication. BIASC Public Affairs Manager & SCB Editor Karissa Willette, Randy Carver, VP Client Services at Kovach Marketing, and our BIASC Reporter Laer Pearce. Thanks guys, you are the best. A brief operational update: BIASC in 2021 is doing well. Our reserves are solid, and membership has increased by 86 members over the last few weeks with our new membership programs. There’s more to come as BIASC Immediate Past Chair Tom Grable leads our new Builders for Members campaign as well as our new Regional Membership Committee. 2021 events are going live and in-person! We are adding new events constantly so please stay tuned for more details on these exciting opportunities. We will be having our first all-BIASC Governing Board and Chapters’ Boards meeting in June in Palm Desert. This will be the first time all regional and chapter boards will be gathered to collaborate and plan advocacy and long-term strategies for our builders and associate members. Thank you all for your continued support of the Southern California Builder magazine and the BIASC. Craig Foster

You’ll also find great updates from the Anaheim Chamber of Commerce and the Greater Irvine Chamber of Commerce.

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GENERAL WILLIAM LYON The Exemplary Orange County Homebuilder Orange County might never have known General William Lyon, who started a homebuilding empire here that provided jobs to generations and homes for well over 100,000 families, whose philanthropic generosity helped create HomeAid and support causes from abandoned children to the high arts, and whose love of aviation brought the county one airline and one aircraft museum, were it not for another Orange County homebuilder.

That builder, whose name has long-since slipped into obscurity, was everything Gen. Lyon wasn’t. He built a home in Fullerton that Lyon and his wife Miriam purchased after World War II. The place was a mess, with flaws, failures and ill-advised shortcuts everywhere the young couple looked. The builder refused to acknowledge the issues and instead showed them the one skill he excelled at: ignoring responsibility. Not long thereafter, Gen. Lyon finally realized his longtime dream of being a combat military pilot (more on that later), and in between flying 75 missions during the Korean War, he kept thinking of that builder and how, if he were a builder, he would do things very differently. When he returned to Orange County at the end of the war, he set about doing everything he’d been thinking about half a world away. And the world is now a better place, thanks to his indignation over a job not done well.

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We lost Gen. Lyon last May in his 97th year, and as the anniversary of that loss approaches, BIASC is pleased to honor him in this, his local BIA publication. That’s something he would have liked because according to his son Bill H., Gen. Lyon always thought locally. We would like to thank Bill H. Lyon, former Executive Chairman and Chairman of the Board for William Lyon Homes and current director of Taylor Morrison, for the time he spent talking with Southern California Builder, and for the many photos and blog posts he provided. GETTING STARTED Gen. Lyon came from a family deeply committed to working for the American dream. His father had emigrated to America from Russia with pockets as empty as his dreams were big, His mother had what it took to be a World War I nurse, and if that didn’t provide drive enough, his older brother Leon was always happy to provide a bit more. Being raised in Los Angeles at that time almost certainly would give a young boy plenty of opportunities to see homes being built and airplanes crossing the blue skies. He was smitten – by the planes, not the homes. Showing the drive that stayed with him all his life, he not only learned to fly at 16 but later went on to become a flying instructor.

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He had a plan for realizing his dream of flying for the U.S. Navy in World War II. He joined the Navy Reserve Officer Training Corps at USC, and with a friend served coffee to workers at the El Segundo North American Aviation plant. But when he tried to enlist after the attack on Pearl Harbor, his physical exam revealed a deviated septum, and even surgery to correct the problem wouldn’t convince the Navy doctor that the young aviator was fit for combat duty. So, Gen. Lyon just pushed on, becoming a commercial pilot and instructor – ironically even teaching Navy air cadets how to fly. When the demand for new pilots and thus instructors began to wane, young Lyon became a warrant officer in the Army Air Corps, ferrying all types of military aircraft around the world. “In one month alone, he was checked out in four different airplanes – everything from fighters to bombers,” his son, Bill H. Lyon, told Southern California Builder. “He flew just about every airplane the Army Air Force had, even though he never attended the Army Air Force Flight School.” Sticking with it worked: He received a commission in the Air Force Reserve after the war and volunteered when hostilities broke out in Korea. When the military stuck him with running a stateside Officer’s Club, he advocated for an assignment where he could make a difference and, finally, was deployed to Korea as a combat pilot, dropping paratroopers behind enemy lines.

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a handshake, then by a contract. He was particularly proud of some land he bought from a woman farmer whom his competition avoided because she had two vicious dogs in her house. He said he thought the dogs were going to rip through the door to the back room while he and the owner discussed terms but was undeterred and purchased the land.”

“His military experience was reflected in his career mostly in the way he led by example and got people to follow him. It gave him his dogged persistence and determination, but also a high degree of flexibility in how to achieve his overall goals,” Bill H. said. “That put him on a path to great heights – and also served him well later in negotiating land deals and getting through a number of downturns. But despite that drive and all his later success, he constantly surprised people with his warmth, his sense of humor and his great storytelling.” When the Korean War ended, Gen. Lyon and his brother Leon started Luxury Homes in 1954, months after his return to Los Angeles. (Leon stayed with the company until its 1968 sale to American Standard.) Despite the company’s name, its homes were more utilitarian than luxurious – the first projects, in Fullerton, then Anaheim, offered two or three bedrooms and one bath in 1,000 to 1,150 square feet, selling for … wait for it … $8,900. In those early days, the Lyon brothers and their families lived in the first subdivision’s first homes and built the other homes around them until closing out the project with the sale of their temporary home. In this and myriad other ways, Gen. Lyon created one of the hallmarks that separated him from that incompetent builder in Fullerton: He became a local builder with ties to the community. “He believed in having roots and being hands-on,” Bill H. said. “In the early years, he grew the business by sitting around kitchen tables with farmers and farmers’ wives to work out land deals that were sealed first by

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“It was always about the land with him, the deal. He had a real aversion to the idea of having to feed the machine, because to him, each deal was the only deal. He taught me and the other executives at the company that it’s too expensive to make the wrong deal. He wanted us to view each one as if it was the only one, like he had.” GROWING DOMINANCE Bill H. says that in those years, his father probably was so focused on building the current project and securing land for the next one that he probably didn’t spend too much time thinking about what the company might become. “He felt like the new guy,” Bill H. said, “and there were lots of guys who were well ahead of him. He told me once about going to a City Council for approval of a project. It was early on the agenda and when it came up there was almost no discussion before the Council voted it down. Afterwards, one of those guys who was well ahead of him told him, ‘Take a box of See’s candy to the woman who sets the agenda and ask her to put you at the end. By then, the general public will have gone home, so it’ll be just you and the Council, and you can talk with them and get some real business done.’” It must have worked, as the company expanded to northern California in just five years, in 1959. Nine years later, he sold the company to American Standard in a deal that kept him active in the business – a hallmark for all major changes that lay ahead. Even as he worked to put together land deals and joint ventures for American Standard, “he wasn’t happy in that job because he was anything but the local builder,” Bill H. said. “He was responsible for highrises in New York and even projects in Africa. When American Standard got a new CEO who had no appreciation for real estate, approvals for new land acquisitions stopped coming, and Dad wanted out.” With characteristic focus and determination, Gen.

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Lyon turned around and bought American Standard’s Western U.S. real estate assets in 1972 and, as William Lyon Co., went back to being the local – if much bigger – builder.

his country and help lay the groundwork that evolved into the Air Force and the Air Force Reserve being One Force, with his Air Force Reserve no longer being the lesser partner.” When Gen. Lyon returned to Orange County with experience overseeing hundreds of thousands of people and massive military budgets, The William Lyon Company went on a growth tear, starting with purchasing the Presley Cos. from Pacific Lighting. Wade Cable, who helped arrange the transaction, told the Orange County Business Journal, “I waited in the lobby, expecting him to show up with a team of lawyers and accountants. He showed up alone. It was just his way.” Gen. Lyon took the same approach with the downturn of the 1990s. He sat down with the banks that held his land loans in one room and made personal promises to them that he would stay at the helm and take care of the debts if they gave him time. They did, and he kept his word, even if it meant liquidating some of his assets, including some of his much-loved car collection.

While he was at American Standard, his wife Miriam died from a brain aneurism. With their daughters away in college, Gen. Lyon poured even more energy into his company. In the process, he often worked with Willa Dean Harwell, a bookkeeper who became the company’s first female vice president. They married in 1971 and William Harwell Lyon was born two years later. THAT’S GENERAL LYON

As the company’s dominance in western suburban markets grew, some people began referring to Gen. Lyon as one of the people who shaped the new American suburb. Bill H. Lyon thinks his father would have none of that. “That’s a little too much for him; I don’t think he’d buy it. He always was in his heart a local builder. He always loved running into people who told him they lived in, or had lived in, a William Lyon Home. Showing his characteristic sense of humor, he would thank them, then deadpan, ‘Is it still standing?’” During the turbulent times of real estate recessions, Gen. Lyon fell back on his aviation experience, saying

Gen. Lyon took a four-year break from homebuilding from 1975-1979 to serve as Chief of the Air Force Reserve in Washington D.C., with the rank of Major General. During this time, he also was an assistant to the Commander and Chief of the Strategic Air Command. “He was very fulfilled by his time with the Air Force Reserve because he helped legitimize it as being as ready and able as the regular military,” Bill H. said. “He left the building industry for four years to take that position and he was proud that he was able to serve

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getting through a downturn is like flying through a thunderstorm. In a blog post, Bill H. Lyon explained this good advice, writing, “His point was that if you strapped yourself in tight and watched your instruments, you could navigate your way through a storm. If, however, you became reactive to one crisis after another, constantly changing course, looking for clearer pockets of air, you would weave back and forth, wasting time and fuel and potentially never come out the other side.” BIA AND HOMEAID Gen. Lyon encouraged his executives and employees to be active in their local BIA chapters, so they, too,

would be seen as local builders. And, not surprisingly given his philanthropic bent, he was involved in the creation of HomeAid at BIA’s Orange County Chapter in 1989. The roots of HomeAid, though, go back to an earlier Lyon philanthropic endeavor, the Orangewood Children’s Home, which replaced the aging and overcrowded Albert Sitton Home. Bill H. Lyon explained it in a company blog post: My sister Marcia, the first female Anaheim PD patrol officer, had seen firsthand the austere conditions at Sitton when she escorted children who had been removed from their homes. She introduced the Sitton Home to my mother, who encouraged the company’s subcontractors to donate items to the children’s home instead of sending holiday goodies to the company. “When it came time to build the new Orangewood Children’s Home, my father and other supporters in

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the building industry sought to maximize the impact of the $8 million raised for the project by utilizing their industry contacts and subcontractor relationships to get the facility built with discounted and in-kind labor and materials.” The success achieved by the pooling of industry knowhow and resources became the model for HomeAid, which got underway with a pilot project for the Irvine Farm Houses in 1988. That was followed up by Hope Family Housing El Modena, HomeAid Orange County’s first project in 1989, which saw William Lyon Homes as its builder partner. Company support continued with more than a dozen projects throughout the West for HomeAid – which together can provide places of relief for 25,000 homeless families and individuals. William Lyon Homes is also the only company that built magical playhouses for every one of the 21 years that HomeAid held its Project Playhouse Fundraiser. “Gen. Lyon’s generous heart came in many forms, and his legacy will live on forever in HomeAid’s story, through the playfulness of a playhouse or the strength of a shelter. We are eternally grateful for the imprint he left to help those experiencing homelessness,” said HomeAid Orange County Executive Director Gina Scott when presenting the General with a Lifetime Contributor Award in 2018. To view the tribute HomeAid produced to honor Gen. Lyon, including a moving video, click here. STEPPING ASIDE There’s so much more to tell, like the success of Lyon Living, his apartment venture, AirCal, once Orange County’s own airline, going public, going private, and ultimately, a multi-year leadership transition that culminated with the General turning over the reins to his son in February 2017, just a few weeks shy of his 94th birthday. He enjoyed a bit over four years of retirement with Willa Dean, his children, grandchildren, and great grandchildren before passing. “He left an incredible mark,” says Bill H. of his father, “not just locally but in the homebuilding industry, and not just in the homebuilding industry, but in his philanthropic and aviation interests as well.” Bill H. believes his father would have seen the company’s recent merger into Taylor Morrison as

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necessary and good forward planning. “With the recent restructuring and being public once again, it made sense to join forces to become a top five builder, which he would understand,” he said. “The two companies have similar philosophies, and under Sheryl Palmer they are doing a remarkable job of taking care of their people and providing a high-quality product. When we were considering a merger, a high priority was to find a company that shared our culture, the culture my father created. That’s hard to do, but Taylor Morrison’s culture is similar and that’s a big reason why we ultimately selected them.” What guidance would Gen. Lyon give to others seeking to amass a nearly 65-year legacy in the unique and difficult business of homebuilding? Well, first he would probably give this excellent piece of advice for

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any career, any life: “Volunteer for everything.” It’s a philosophy he had pursued since his teens. Beyond that, if Gen. Lyon were here, he would tell you to stay the course. Keep your focus on the task at hand. Care more than the next guy. He would say your best route to building a successful product is to use reputable companies who have done good, honest work for you, and by sticking to the policies and procedures that evolved from the lessons learned from your mistakes. And finally, because homes are planned, designed, and built by people, not machines, he would tell you to make sure your people are all at the top of their game on each new house – because your customers don’t care about the last home you built, they care about the home you’re building for them.

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REGISTER AT BIASC.ORG SAVE THE DATE FOR THESE UPCOMING EVENTS MORE DETAILS COMING SOON!

APRIL 4/22/2021 4/15/2021 COUNCIL ON SAGE WEBINAR: DEVELOP DIFFERENTLY - A NEW BIA BALDY VIEW ADVANCED MECHANICS LIEN SEMINAR MODEL FOR SENIOR LIVING

4/21/2021 BIA LOS ANGELES/VENTURA CHAPTER POLITICS UNPLUGGED 4/28/21 BIA RIVERSIDE CHAPTER LOT MORNING BUZZ WITH GREG SHAIA, RICHMOND SCBSA SAFETY AMERICAN HOMES ALLIANCE TRAINING WEBINAR 4/22/2021 COUNCIL ON SAGE WEBINAR

MAY

DATE TO BE DETERMINED - STAY TUNED! 5/6/2021 BIA RIVERSIDE CHAPTER NETWORKING EVENT

BIA ORANGE COUNTY CHAPTER WEBINAR - OPPORTUNITIES & LESSONS LEARNED PART 2

5/10/2021 M AY BIA ORANGE COUNTY 54TH GOLF TOURNAMENT PRESENTED BY BOUDREAU PIPELINE 5/6/2021 BIA ORANGE COUNTY CHAPTER WEBINAR - OPPORTUNITIES & LESSONS LEARNED PART 2 5/12/2021

BIA RIVERSIDE LOT MORNING BUZZ WITH GREG SHAIA, RICHMOND AMERICAN

5/10/2021 HOMES BIA ORANGE COUNTY 54TH GOLF TOURNAMENT PRESENTED BY BOUDREAU PIPELINE

GSMC IN-PERSON NETWORKING EVENT

5/12/2021 5/13/2021 GSMC NETWORKING EVENT

COUNCIL ON SAGE WEBINAR

5/13/2021 BIASC BUILDERS ROUNDTABLE COUNCIL ONGALA SAGE AT WEBINAR BIASC PAC ARROYO TRABUCO GOLF CLUB BIASC PAC GALA AT RANCHO MISSION VIEJO

DATESTO TOBE BEDETERMINED DETERMINED - STAY TUNED! DATES - STAY TUNED! BIA BALDY VIEW CRAFTED NETWORKING EVENT BIA BALDY VIEW CRAFTED NETWORKING EVENT BIALOS LOSANGELES/VENTURA ANGELES/VENTURA CHAPTER MARGARITA MADNESS BIA CHAPTER MARGARITA MADNESS BIASC BUILDER ROUNDTABLE & PAC BIASCLEADERSHIP LEADERSHIP BUILDER ROUNDTABLE & EVENT PAC EVENT

JJ U UN NE E 6/3/2021 6/3/2021 BIASCLEADERSHIP LEADERSHIP HOUSING & POLICY SUMMIT - AGUA CALIENTE RESORT BIASC HOUSING & POLICY SUMMIT - AGUA CALIENTE RESORT 6/21/2021 6/21/2021 BIA CHAPTER GOLF TOURNAMENT BIALOS LOSANGELES/VENTURA ANGELES/VENTURA CHAPTER GOLF TOURNAMENT DATES - STAY TUNED! DATESTO TOBE BEDETERMINED DETERMINED - STAY TUNED! BIA ORANGE COUNTY CHAPTER WOMEN'S LEADERSHIP CONFERENCE BIA ORANGE COUNTY CHAPTER LEADERSHIP CONFERENCE BIA BALDY VIEW CHAPTER HOUSINGWOMEN'S POLICY CONFERENCE BIA BALDY VIEW CHAPTER HOUSING POLICY CONFERENCE BIA RIVERSIDE CHAPTER LOT BOWLING

BIA RIVERSIDE CHAPTER LOT BOWLING

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QUESTIONS? PLEASE CONTACT BIASC VICE PRESIDENT OF EVENTS LAURA BARBER AT LBARBER@BIASC.ORG

Southern

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R E G I S T E R & S P O N S O R A T B I A S C . O R California G/EVENTS

April 2021


COVID Creates Evolution in Digital Advocacy

Chuck Hahn

BIASC Digital Advocacy & Campaigns

“Pivot” became a buzzword for how nearly every business shifted operations during COVID and the advocacy landscape was no different. Pivoting over the last year to engage a digital audience created some new opportunities that will continue long after the pandemic ends. The traditional world of direct lobbying by high priced consultants still holds value in building relationships with elected leaders. However, there is a new cost-effective tool that makes it easier than ever to layer in grassroots cover that can be easily mobilized through online tools in our new “Zoom” culture. Digital advocacy has exploded not only for BIASC, but virtually any entity that works with local and state government agencies. Fueled by fears of pandemic, frustrations over racial injustice, and perhaps the most contentious election in a generation, the records for most metrics in digital advocacy have been shattered. What is driving this? Traditional lobbying was disrupted when social distancing stopped in person meetings, but the stay-at-home orders led to people being more connected online to their communities and the world at large.

These factors have evolved the face of advocacy driven by technology. Some have called it the “connective” not the “collective”. This requires a digital advocacy plan and tools in order to harness this new movement, such as: • Virtual Events: Anyone can attend from anywhere which significantly reduces the costs of hosting advocacy events and exponentially expands the reach for participation. • Mobile Action from Smartphones: One study found that during the pandemic 52,000 people took action from their phones each day and that this empowered people after the helpless feeling created by the stay-at-home orders. • Social Shares is Primary Channel: 287% increase in first 3 months of COVID • Texting is Replacing Email: As many as 98% of recipients open a text message vs. 20% of emails. • Local Advocacy is More Important than Ever: COVID is driving key decisions to local levels. • Urgency Drives Action: Call to action participation has to be as easy and fast as just a few clicks.

Anyone with a cell phone or internet connection has the power to join a digital citizen army. This gives businesses and associations better insight into their audiences allowing for real-time adjustments to messaging and coordination. Since we cannot connect in person, the opportunity to connect online creates broader audiences who can engage instantly.

Looking Forward to 2021: The tumult that gripped America in 2020 will continue in the year ahead. Transition in government leaders at the federal, state, and local levels will mean new policies and regulations that will impact our post-COVID economic recovery. Comprehensive advocacy requires greater-thanThe historic social justice protests drove new levels of citizen ever engagement but the digital landscape has created the opportunity to mobilize new and vast audiences to achieve activism. The economic meltdown played a role as well. your policy goals. There are existential threats in some industries creating catastrophic declines in business, plus Congress passed Chuck Hahn is former Chief Assistant Secretary of State in California and the four massive stimulus bills containing aid impacting almost founder of Southlake Public Affairs, which provides professional strategic everyone. planning and project management services to clients nationwide including the Building Industry Association of Southern California.

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April 2021

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REGISTER AT BIASC.ORG SAVE THE DATE FOR THESE UPCOMING EVENTS MORE DETAILS COMING SOON!

JULY 7/15/2021 BIA BALDY VIEW CHAPTER & BIA RIVERSIDE CHAPTER BACKYARD BBQ NETWORKING EVENT DATES TO BE DETERMINED - STAY TUNED! BIA LOS ANGELES/VENTURA CHAPTER NETWORKING EVENT - DODGERS GAME NIGHT BIA ORANGE COUNTY CHAPTER WHISKEY TASTING NETWORKING EVENT BIA ORANGE COUNTY CHAPTER GOVERNMENT AFFAIRS WORKSHOP

AUGUST 8/11/2021 GSMC WEBINAR 8/19/2021 COUNCIL ON SAGE BREAKFAST MEETING 8/19/2021 BIA RIVERSIDE CHAPTER WINERY NETWORKING EVENT - WILSON CREEK 8/31/2021 BIA ORANGE COUNTY CHAPTER ANGELS GAME NIGHT (NY V. YANKEES) DATES TO BE DETERMINED - STAY TUNED! BIA BALDY VIEW CHAPTER WATER CONFERENCE BIA ORANGE COUNTY CHAPTER CRAFTS & CARS NETWORKING EVENT

SEPTEMBER 9/16/2021 COUNCIL ON SAGE BREAKFAST MEETING BIA ORANGE COUNTY CHAPTER GOVERNMENT AFFAIRS WORKSHOP 9/10/2021 BIA ORANGE COUNTY CHAPTER SOFTBALL TOURNAMENT 9/15/2021 BIA LOS ANGELES/VENTURA CHAPTER BREWERY TOUR 9/16/2021 COUNCIL ON SAGE BREAKFAST MEETING 9/29 - 30/2021 BUILDING INDUSTRY SHOW 3.0 - PECHANGA CASINO & RESORT DATES TO BE DETERMINED - STAY TUNED! BIA ORANGE COUNTY CHAPTER GENERAL MEMBERSHIP MEETING BIA RIVERSIDE CHAPTER GOVERNMENT AFFAIRS WORKSHOP BIA BALDY VIEW CHAPTER ELECTED OFFICIALS RECEPTION

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QUESTIONS? PLEASE CONTACT BIASC VICE PRESIDENT OF EVENTS LAURA BARBER AT LBARBER@BIASC.ORG

Southern

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R E G I S T E R & S P O N S O R A T B I A S C . O R California G/EVENTS

April 2021


BIASC LEADERSHIP HONORS GENERAL WILLIAM LYON “There’s that old saying that “Heroes come and go, but legends are forever…” He certainly made his mark on more than just Homebuilding.” -ALAN BOUDREAU, PRESIDENT BOUDREAU PIPELINE & BIASC GOVERNING BOARD MEMBER/TREASURER

“Quality homes, quality man and philanthropist that left a rich legacy and helped shaped the landscape of Southern California to where it is today.” -DAVE BARTLETT, VP, LAND ENTITLEMENT | LAND & HOUSING DEVELOPMENT, BROOKFIELD RESIDENTIAL & BIASC CHAIR

“Aristotle once said, ‘You will never do anything in this world without courage. It is the greatest quality of the mind next to honor.’ General William Lyon was a man who had both, courage and honor. We salute you.” -EMILE HADDAD, CHAIRMAN AND CEO, FIVEPOINT

“William Lyon Homes was a top tier builder with some of the brightest minds working for the company and it all started at the top with the General. He was a legend and a man of great integrity. I was lucky to have met and worked with him.” – ERREN O’LEARY, VICE PRESIDENT - PLANNED COMMUNITIES, LEWIS MANAGEMENT CORP. & BIASC GOVERNING BOARD MEMBER Southern | April 2021 California

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REGISTER AT BIASC.ORG SAVE THE DATE FOR THESE UPCOMING EVENTS MORE DETAILS COMING SOON!

OCTOBER 10/3/2021 GSMC SO CAL AWARDS 10/7/2021 BIA ORANGE COUNTY CHAPTER BITA WINE EVENT 10/14/2021 BIA BALDY VIEW CHAPTER ADVANCED MECHANICS LIEN SEMINAR 10/18/2021 BIA LOS ANGELES/VENTURA CHAPTER ANNUAL TRAP SHOOT TOURNAMENT 10/21/2021 COUNCIL ON SAGE AWARDS DINNER BIA ORANGE COUNTY CHAPTER URBAN INFILL WORKSHOP 10/25/2021 BIA ORANGE COUNTY CHAPTER GENERAL MEMBERSHIP MEETING 10/28/2021 ALL CHAPTERS BOARD EVENT, LYON AIR MUSEUM

NOVEMBER 11/10/2021 GSMC WEBINAR 11/12/2021 BIA ORANGE COUNTY CHAPTER INSTALLATION GALA 11/19/2021 BIA RIVERSIDE CHAPTER INSTALLATION GALA DATES TO BE DETERMINED - STAY TUNED! BIA RIVERSIDE CHAPTER GOVERNMENT AFFAIRS WORKSHOP BIA LOS ANGELES/VENTURA CHAPTER GENERAL MEMBERSHIP MEETING

DECEMBER 12/3/2021 BIA LOS ANGELES/VENTURA CHAPTER INSTALLATION GALA 12/9/2021 BIA BALDY VIEW CHAPTER INSTALLATION GALA

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QUESTIONS? PLEASE CONTACT BIASC VICE PRESIDENT OF EVENTS LAURA BARBER AT LBARBER@BIASC.ORG

Southern

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R E G I S T E R & S P O N S O R A T B I A S C . O R California G/EVENTS

April 2021


B I L D Board Spotlight:

Jennifer Hernandez Holland & Knight

In her role as legal counsel to the Building Industry Legal Defense Foundation, BILD, Jennifer Hernandez is our resident warrior for CEQA reform and fair housing policies that address the needs – and dreams – of blue collar and minority families. She has practiced land use and environmental law for more than 30 years and heads the West Coast Land Use and Environmental Group for the law firm Holland & Knight. She recently shared her thoughts with Southern California Builder. Southern California Builder: What got you into the law, then into litigation and then into CEQA litigation? Jennifer Hernandez: I learned to debate nuns in school without getting kicked out – a fine line – and then went to law school because I didn’t know what I wanted to do. In law school, I went into environmental law because nobody knew what it was in 1984 so it was easy to be as smart as more experienced lawyers. In 1989, I became a land use and CEQA lawyer because the University of California Office of General Counsel hired me after losing a CEQA lawsuit. They advertised the position as an “environmental” lawyer, but on my first day there, they handed me a traffic study for UC Santa Barbara. I asked why and they said it’s environmental. I said it wasn’t and they said it was, it’s CEQA. And I said, what’s SEQUA? SCB: We all think of Berkley as the kind of place that doesn’t turn out lawyers who fight for builders, often against environmental NGOs. Are we thinking wrong or are you an anomaly?

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JH: There are two Berkeleys because there are over 30 years’ worth of kids like me who grew up in blue collar and lower income families who got into college and grad school through scholarships. We share core values like upward mobility and equity – which mean working hard, owning a home, and having and taking care of your family. We didn’t have trust funds that allowed us to volunteer for cool internships and go to expensive meetings with each other to decide how “those people” should live – we were “those people” and we needed to get on with life! I’ve met some of the worst racial and sexist bigots, most contemptible elitists, and most counterproductive environmentalists in Berkeley, and that’s done a great job of keeping me calm as I work all over California and celebrate the basic decency, shared values, and common sense of regular people - qualities that often seem in short supply for too many Bezerkleyans and Bay Areans. We still live in Berkeley, but I confess I couldn’t take it during COVID-19, so my husband and I have leased a lovely apartment in Marina Del Rey – sunshine, smiles, and swimming provide a lovely contrast to the dour defeatism of our socialist and environmental overlords to the north. SCB: Holland & Knight is a big firm – more than 20 offices and 1,100 lawyers. Give us a bit on how your specialty of real estate and environmental law/litigation fits into the bigger Holland & Knight picture. JH: Holland & Knight has the nation’s largest land use practice, but when our group joined from a boutique

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2021

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You’re invited to the most anticipated event of the year! Save the Date for BIS 3.0 - September 29-30th, 2021! Sponsor, Exhibit & Register online at www.buildingindustryshow.com Southern California

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April 2021


firm more than 15 years ago, the firm did not have a West Coast land use and environmental practice – so we were a great strategic addition. The firm was and remains a great fit for our team, which has grown to more than 25 lawyers from San Diego to Sacramento and in between. SCB: You and your colleagues really made waves with Holland & Knight’s 2015 book, “In the Name of the Environment,” which provided a shocking review of the real impact of CEQA lawsuits. Tell us about the book and how it came about. JH: It’s a bit of a long story, but I think the context is important. I spent 23 years on the Board of Directors of the California League of Conservation Voters (“CLCV”), and right before the 2008 recession hit, CLCV honored infill builders like Forest City for pioneering higher density, mixed income urban developments near transit. Then the 2008 recession wiped out housing, including the housing construction trades – and that was the remaining blue collar employment base for my family and those I grew up with after the rust belt hit California and wiped out thousands of manufacturing jobs in the late 1980’s. In 2008, Silicon Valley was still a global economic success story in the recession but had, and continues to have, a massive housing shortage. At one point the Bay Area was creating nine new jobs for every new housing unit. Looking at this, there was an obvious win possible right after Jerry Brown was elected to do a two-year emergency exemption from CEQA for higher density housing along transit corridors – housing that had to comply with local zoning and also all of California’s stringent environment and building standards. That could keep construction workers from losing their jobs, their marriages, their kids, and in some cases their life as physical and mental illness spread like wildfire. I pitched this two-year exemption idea to Tom Adams, CLCV’s Board chair, who earlier, as the founder of Adams Broadwell, had invented the use of CEQA as a litigation leverage tool by the Building Trades Council. I’d been friends with Tom for 20 years, but after he

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heard my proposal in 2009 he said the last words he’s ever said to me: “Jennifer, that will never happen.” I was flabbergasted – why not help construction workers and people who need housing by quickly building more housing where the environmental community just agreed it should be, and where early climate laws like SB 375 said it should go? Tom’s answer was that he would NEVER give up leveraging CEQA lawsuits to get Project Labor Agreements for the union locals who hired his firm – which was not at all about the environment, or housing. I decided that to effectively advocate for housing – and the families, workers, builders and employers who depended on housing – we needed to peel back the curtain on CEQA’s status quo defenders, and the abuse of CEQA for non-environmental purposes. I led the research, but even I could never have envisioned the results – only 13 percent of CEQA lawsuits are filed by environmental groups, the top target of CEQA lawsuits is housing in existing communities, and the winloss rate for CEQA lawsuits is nearly a coin toss. In practice, CEQA is a barrier to housing – and worse, it’s an anti-environmental barrier. SCB: What affect do you think “In the Name of the Environment” has had? JH: It changed the debate. Our research methods were simple and our factual conclusions have never been challenged. We looked at every single CEQA lawsuit filed over three years, then did subsequent studies over the next three years and thereafter, just documenting what was being targeted by whom. When we published the results, we got ludicrous critiques – like CEQA lawsuits are less than one percent of all lawsuits filed in California. But who cares how many property or contract or probate lawsuits we have? Or my favorite, versions of which were made in both San Francisco and LA, saying that fewer than one percent of CEQA decisions are ever litigated. Right. Because if you count the thousands of categorically exempt projects that we shouldn’t even have to think about, which in San Francisco included internal modifications to existing

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BIASC LEADERSHIP HONORS GENERAL WILLIAM LYON “Bill, or the General, was the quintessential innovating and risk-taking developer and propagator of the American Dream. He leaves behind hundreds of thriving communities across our nation full of families living that dream. He was, is and will remain an icon of the industry.” - NEWMEYER & DILLION LLP

“In early August 1998, I had a new job opportunity to go to work for William Lyon Homes, Inc. as a project manager in the Southern California division. After I had already accepted the job offer I was invited to a one-on-one meeting with General William Lyon. Knowing what an iconic figure he was, how indemand and busy he might be, I expected a relatively quick a p p o i n t m e n t , m a y b e a 2 0 m i n u t e m e e t - a n d - gr e e t w i t h t h e g r e a t man. The meeting lasted for more than an hour and a half where we covered wide range of subjects including homebuilding, politics, cars, flying and family—his greatest passions. One rarely gets to ask someone who has spent a lifetime in leadership positions at the highest levels about the quintessential aspects of leadership.But I did. One question I asked Bill, as I came to know him well during the almost 11 years I spent at the company with his name on the door, “What are the most important characteristics you look for in the leaders of your organizations?” He didn’t bat an eye of hesitation as he lifted his hand up and in his familiar gesture of a whip of his wrist he held up two fingers and said, “Two things: integrity and loyalty.” F r o m t h a t m o m e n t o n , I k n e w I c o u l d c o n d u c t t he a c t i v i t i e s o f my job on behalf of the company and that if I conducted myself to those ideals, I knew General Lyon and the company would in turn have my back. And they did.” -TOM GRABLE, DIVISION PRESIDENT, TRI POINTE HOMES BIASC IMMEDIATE PAST CHAIR

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non-historic buildings – then you’re right: Almost no one is going to sue, it’s just a paper chase by the army of folks now making a living charging by the hour under CEQA. In a radio interview shortly after we published, David Pettit from the Natural Resources Defense Council admitted that “all the big projects” get sued under CEQA. Yep, the big ones, and increasingly the small ones too – especially to pay that whole class of ambulance-chasing CEQA lawyers who don’t even have a real client but just want a quick and substantial cash settlement. It is just shameful for environmental advocates to defend the CEQA status quo, given California’s poverty, homelessness, and housing crisis. I stayed on the CLCV Board for a couple more years, but the willful anti-housing and anti-people bias and blindness of too many in the environmental advocacy world was just too much. Even the Sierra Club’s first Black President noted that racism was and remains pervasive in environmental organizations, and Mary Nichols was passed over by the Biden administration after Black employees documented widespread racism and environmental justice advocates decried environmentalist cronyism and disregard for the health of poor communities of color. I’m no friend of pollution – I grew up in a polluted factory town and have asthma – but for CEQA to be used to block critically-needed housing is not about fighting pollution or preserving natural spaces, it’s about extortion, NIMBYism and – too often – racism. In a second three-year study, we found that 78 percent of all anti-housing CEQA lawsuits in the LA region were filed in the region’s whitest, wealthiest and healthiest areas. SCB: What are you working on now at BILD? JH: Everything in California today revolves around climate change, and that’s led to the Vehicle Mile Travelled (“VMT”) regulatory regime imposed by the California Air Resources Board, and then weaponized in CEQA by the Office of Planning and Research. Climate change and its spawn, VMT, is this generation’s

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bureaucratic rationale for excluding minorities from attainable homeownership by demanding that new housing must either be high density, high priced units on a fixed-route bus or transit stop – or 100% “affordable” housing by which they mean the sort of taxpayer funded rental-only units that past civil rights leaders called “projects” as they fought for the right to buy a home just like their white co-workers. When the Southern California Association of Governments issued its new regional SB 375 plan, buried in their models was a consultant-driven land use plan to reject more than 90 percent of approved General Plans in favor of concentrating new highdensity development in poor minority neighborhoods, while forbidding even small infill projects on surplus strip malls in single family home neighborhoods. The SCAG Regional Council wisely stepped in to call for a time-out and fixed it, but the planning bureaucrats and their advocates loved what they’d done because treading on the downtrodden reduces VMT! In addition to VMT, while much of the California economy has been shuttered by the coronavirus, regulatory agencies have been plenty busy – for example, a stormwater regulation that would ban outdoor construction during the winter (because construction workers don’t need to work during the winter?). On another issue, we have seen the diverting taxpayer funds earmarked for road maintenance and improvements instead to a sole source contract to prevent housing on land “at risk” from development. Meanwhile, more than seven years of extraordinarily costly regulatory efforts to reduce greenhouse gas for climate change were wiped out in a summer in forest fires that the state’s own Little Hoover Commission warned years ago would cause “Fire on the Mountain” (the title being an homage to the Grateful Dead, incidentally). These agencies and their policies too often aren’t really about climate or the environment; they are about people with power and money victimizing families struggling to get by on what they earn from good jobs

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A higher bar. It’s time to honor a man who served his country, supported his community, built a noble business, created a following, and secured his legacy as a giant among Orange County leaders and philanthropists. We are thankful to General William Lyon for the example he set and the opportunities he created.

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in a state that makes them pay three times more for a house than Arizona. I’m a lawyer and BILD is an advocate for building housing – and for us it is a moral imperative to continue to shine a spotlight on the abuse of people who need housing by wealthy elites, and use all of our legal tools to advocate for good housing policy and actual housing projects. SCB: You’re also involved in The Two Hundred, which is a statewide voice advocating for more home ownership for low- and moderate-income communities of color. How did you get involved with them, and what are your thoughts on their mission? JH: I’ve worked with members of The 200 for more than 20 years, first in their effort to force the Department of Toxics Substances Control and Regional Water Quality Control Boards to join more than 40 other states in having clear cleanup standards for Brownfields properties so these properties could be redeveloped with standard bank financing and community reinvestment tax credits. It was my honor to work with them on other projects, including most recently in homeownership. The 2008 recession destroyed trillions of dollars of wealth in minority communities, and the housing shortage and runaway housing crisis had been allowed to get so far out of control that California had become more racially segregated, with fewer minority homeowners, than before the civil rights movement of the 1960’s. The 200’s focus is on homeownership: the most successful wealth creation tool in human history, which was responsible for the creation of the largest and most successful middle class in the nation’s history. The leaders of The 200 did an extensive survey of their civil rights colleagues and community leaders and members, housing advocates and developers, banks and lenders, and government officials – and they kept hearing over and over again about CEQA. I’m proud to be their enviro nerd on CEQA and housing but was totally taken by surprise when CARB jumped into CEQA in 2017 by adding anti-housing measures to the state’s

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climate change plan. The shocking truth is that CARB counts shrinking the California economy and exporting jobs and people to other states as greenhouse gas reduction achievements, thereby cloaking in climatetalk the anti-population agenda that is built into the DNA legacy of California’s environmental agencies and advocates. CARB and OPR continue to weaponize CEQA to drive Californians out of the state where housing is actually affordable to working families, even though a family moving from California to Texas nearly triples its greenhouse gas emissions. I did not anticipate spending these past several years working with The 200 to pursue civil rights litigation against state environmental agencies to try to recover the massive losses in homeownership since civil rights reform, but that’s where we find ourselves. SCB: What does Jennifer Hernandez do when she’s not being the killer CEQA litigator we all think we know? JH: Wish for more free time, thank my patient husband, miss my world-travelling son – and swim or walk in the Marina! SCB: Any parting thoughts on anything at all? JH: BIASC members build more housing than anyone else in California, by several orders of magnitude. BILD and BIASC are advocates for our members – and advocates for our state and its people. Homebuilding has always played a major role in economic recovery, and it was and remains a bright light of hope for the millions of families who long for a home they can buy, or a better home they can rent. Fighting for housing is a righteous war, but we can’t stay in an industry silo or a regional silo and win against the de-growth and income redistribution disciples that control too much of the housing policy agenda. BIASC has been a regional leader, and a catalyst for other sectors and regions, in holding elected officials accountable for restoring attainable homeownership to our hard-working families. I’m very proud to be on Team BIASC/BILD.

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Congratulations

to the 2021 Hall of Fame Inductees

The 36th annual California Homebuilding Foundation’s 2021 gala will honor the accomplishments of five celebrated inductees, blending tradition with technology in an exciting virtual-hybrid experience. This event will be hosted By Joan Webb Chief Marketing Officer, The New Home Company. Included in this year’s induction class are Kent Aden, HomeFed Communities; Steve Kalmbach, PulteGroup; Steven Kellenberg; Kellenberg Studio; William R. Parker, Parker Development Company and Jeffrey Roos, Lennar Corporation. Visit https://www.mychf.org/2021-inductees/ for full details. Inductees are carefully selected on the basis of career progression and experience, philanthropic contributions, and exemplary servitude to our industry. The following inductees will be celebrated at the 36th annual Hall of Fame gala on in San Francisco.

Please join the Foundation in congratulating the 2021 inductees:

Kent Aden

Steve Kalmbach

HomeFed Companies

Steven Kellenberg Kellenberg Studio

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PulteGroup

William R. Parker Parker Development Companies

Jeffrey Roos

Lennar Corporation

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BIASC LEADERSHIP HONORS GENERAL WILLIAM LYON “I feel very blessed to be a member of an industry for so many years that has had such an amazing leader and icon, General William Lyon, as a beacon and guiding force for what honor, integrity and service truly mean. I count myself lucky to have had the privilege of meeting him in person and having been impacted by his contribution and his legacy as a guideline for my own service.” -VALERIE HARDMAN, VICE PRESIDENT OUTDOOR DIMENSIONS & BIASC GOVERNING BOARD MEMBER

“General Lyon’s life-long commitment to his family, his friends, his employees, our nation, the Southern California Community, and to the builder / developer industry may never be equaled. His example of “giving back” has set the standard to which we all strive. All of us at Rancho Mission Viejo will r e m em b e r h i m w i t h r e s p e c t , g r a t i t u d e , a s m i l e , a n d l o v e forever.” -TONY MOISO, CHAIRMAN CHIEF EXECUTIVE OFFICER RANCHO MISSION VIEJO

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GENERAL WILLIAM LYON IN MEMORY OF GEN. WILLIAM LYON A MAN IN FULL: PHILANTHROPIST, BUSINESSMAN, PILOT AND CITIZEN

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Opinion:

New Greenprint Initiative

Threatens to Undermine

Regional Housing Efforts It’s no secret that Southern California housing costs have skyrocketed over the past year. According to the California Association of Realtors, the median price of an existing single-family home in Southern California’s five-county region increased by an astounding 18%, reaching an all-time high of $649,000. In turn, there’s been a decrease in the percentage of households that can afford to purchase a median-priced, single-family home. While low interest rates have certainly played a major role in the region’s costly housing market, the underlying driver continues to be a drastically low supply of homes. As part of the effort to increase the number of new homes in Southern California, the region’s designated planning organization recently voted to adopt a new housing plan that will require local cities and counties to plan for a massive increase in new housing. As mandated by the state, the Southern California Association of Governments (SCAG) approved a new regional housing plan that will require municipalities to collectively zone for over 1.3 million new homes by the end of the decade. Governed by an 86-member board made up of city and county elected officials, the region covered by SCAG is massive, encompassing all of Southern California, minus San Diego. Despite numerous objections by local governments that SCAG’s new housing requirements are unfeasible, cities and counties now must update their general plans to ensure that there’s enough zoned land to

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Jeff Montejano

BIASC Chief Executive Officer

build their assigned share of new homes. Local municipalities are also under added pressure due to Sacramento’s top-down approach to housing policy, which is fueled by a misguided focus on building expensive high-density housing similar to San Francisco. Although the new housing mandates will require significant steps by local governments to plan for an unprecedented increase in new housing, SCAG has made a serious misstep that would undermine these very efforts. SCAG is currently overseeing the creation of a far-reaching database of private properties across Southern California. Known as the SoCal Greenprint, the new database is being promoted as a tool to help guide land-use decisions and transportation projects. Despite its seemingly innocent intent, the SoCal Greenprint has raised serious red flags, particularly when it comes to potential abuse by forces hostile to new housing. To the frustration of many private and public sector stakeholders, the SoCal Greenprint database is being unilaterally developed with limited input from private property owners and local municipalities. Early portrayals of the property database have included flawed data, inaccurately listing some properties as holding constraints on new development. These erroneous constraints provide anti-housing activists as a basis for filing lawsuits under the California Environmental Quality Act, with the sole purpose of stopping new home construction from moving forward.

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Rancho Mission Viejo salutes and thanks Major General Bill Lyon

All of us at Ranch HQ’s and at the Cow Camp remain blessed by our half century of friendship ¡ 32

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Most worrisome is SCAG’s decision to approve a $705,000 no-bid contract with The Nature Conservancy to create and oversee the database. As one of the most wide-reaching environmental organizations in the world, The Nature Conservancy depends on receipt of conservation easements, land donations, and costly mandatory payments from property owners to fund their land management operations. While it’s important to balance environmental protections with the critical need to build more housing, The Nature Conservancy’s economic self-interest in promoting and acquiring permanent open space presents a serious conflict of interest. Considering what’s at stake, it’s essential that SCAG hit pause on the SoCal Greenprint and work with private and public sector stakeholders to ensure that it does not become an added impediment to the already burdensome process of building new homes. Ending the housing crisis means removing barriers to new home construction, not creating new ones.

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April 2021


Inside Edition: THE ORANGE COUNTY CHAPTER

: n o i t i d E e d i s n I

THE

Orange County CHAPTER

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April 2021

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THANK YOU TO OUR

2021 UNDERWRITER SPONSORS

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Orange County Chapter

Sunti Kumjim

BIA Orange County Chapter President

Our mission is simple. We champion housing as the foundation of vibrant and sustainable communities. Said another way, we advocate for housing. And while the BIA/OC is dedicated to advocating for housing on your behalf, it takes more than the tireless efforts of our talented staff to move the needle on housing policy and project approvals. All too often it is the voice of the vocal few, the NIMBYs, and those who oppose housing opportunities for all that sway the outcome of the public hearing process. It is time for that to change. But in order to effect change, we need the help of you, our members. When we unite, and ensure that our collective voice is heard, we create wins for housing. Here is the hard part. The only way to ensure our voice is heard, is to show up. In an effort to ensure that our collective voice is heard we have created two programs, Operation Turn Out and the Civic Advocacy League. Operation Turn Out is focused on mobilizing our members to show up, and the Civic Advocacy League is focused on recognizing our members that show up. Speaking at a contentious public hearing can be a daunting task and should not go without recognition. When our members volunteer to speak in favor of housing projects we need to recognize them, and they deserve your gratitude and thanks.

Inside Edition: THE ORANGE COUNTY CHAPTER

B I A O C Chapter President Update:

In this issue you will read more about both Operation Turn Out and our Civic Advocacy League. And more importantly, you will hear from two of our members that will share their experiences when we, as an industry, unite in support of housing. A win for one of us is a win for all of us. It is time for us to be the loudest voice in the room.

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Orange County Chapter

Steven LaMotte

BIA Orange County Chapter Executive Officer

I am honored that the April 2021 edition of the Southern California Builder Magazine will feature the Orange County Chapter. I am excited to highlight our past and future events, activities and achievements as well as honor the pioneers that have paved the way to create the industry we know today. 2021 has proven to be a productive and busy year for the BIA Orange County Chapter. We have found ourselves back in person at City Council and Planning Commission meetings advocating for much needed housing units and fighting against burdensome regulations and fees. I am happy to report that BIA members continue to participate in our Civic Advocacy Program by showing up to testify at public hearings. And as you’ll soon see by exploring this edition further, it is imperative that BIA members continue to stand together, show up, and testify for housing projects and good policy. Check out the incentives and requirements to receive recognition through our civic advocacy program on our website at www.biaoc.com/cal and please don’t hesitate to thank our advocates listed on the following page. I would also like to thank our events team, sponsors, program committee members and all of our attendees for making 2021 an already successful year for programs. Our upcoming 54th annual golf tournament sponsored by Boudreau Pipeline is SOLD OUT! And part two of our Opportunities for Today & Lessons for Tomorrow series will touch on several projects throughout Orange County and the lessons learned for the future. Below, check out a few government affairs highlights and make sure you look at the events calendar for the So Cal region later in the edition. Magnolia Tank Farm Moves to the Next Round with Help from BIA Advocacy Program We are happy to report that the Magnolia Tank Farm proposal by Shopoff Realty passed the Huntington Beach City Council this year. The next step will be the Coastal Commission. The project will offer up to 250 for-sale single-family homes, 2.8 acres of Coastal Conservation area that will provide a buffer

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for the adjacent wetlands, 2.9 acres of public parks, trails and viewpoints and a 211,000 sq. ft. lodge with 215 guest rooms, including 19,000 sq. ft. of retail/restaurant space. BIA advocacy was in full swing with over 20 BIA members calling in to testify on the benefits of housing. The grass roots industry effort by our members helped shift the momentum away from the NIMBYs and onto the positives of housing production. Thank you Advocates! Brookfield’s Moiola Neighborhood Project Approved! A big congratulations to Brookfield residential on the approval of their Moiola school site project in Fountain Valley. The approximately 12.9-acre former school site currently supports a total of 40,073 square feet of buildings made up of four classroom buildings. The project boasts 74 single family units, a one-acre park, and offers the city much needed housing stock for those move up or move down buyers!

Inside Edition: THE ORANGE COUNTY CHAPTER

B I A O C Executive Officer Update:

Several BIA members showed up in-person to speak at both Planning Commission and City Council, and not one person spoke in opposition of the project! La Habra Inclusionary Zoning Passes The City of La Habra pushed forward an inclusionary zoning (IZ) policy in 2020. Due to coalition engagement, the council voted unanimously to postpone the discussion. However, the policy returned to council in March 2021 and was approved with a 3-2 vote. Mayor Espinoza, Mayor Pro Tem Medrano and Councilmember Simonian cited the Regional Housing Needs Assessment (RHNA) as well as needing more money and tools for affordable housing as the reasons for approving this policy. This comes months after the council denied much needed new housing that would have generated millions for schools, parks and Affordable Housing! Further, the proposed in-lieu fee language was vague and unclear and could have amounted to an astronomical fee on new housing. Thankfully, the council added a much lower $6.50/sq. ft in-lieu fee before approving the policy. Housing costs and regulations in California are at an all-time high - now is not the time to add more regulation on the industry trying to solve the housing crisis.

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BIA Orange County Chapter

BOARD OF DIRECTORS MEET THE 2021 BIA ORANGE COUNTY BOARD OF DIRECTORS

SUNTI KUMJIM

ERIC NELSON

MBK RENTAL LIVING PRESIDENT

BROOKE DOI SHEA HOMES

TRUMARK HOMES

NICOLE MURRAY

MARK HIMMELSTEIN

SHEA HOMES

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THANK YOU FOR YOUR LEADERSHIP SEAN MATSLER COX, CASTLE & NICHOLSON

TYLER BARGIEL NEW AMERICAN FUNDING

ALAN BOUDREAU

PETER VANEK

BOUDREAU PIPELINE

INTEGRAL COMMUNITIES

RICK WOOD IMMEDIATE PAST PRESIDENT

WENDY BUCKNUM

TODD COTTLE

TONY DITTEAUX

NICOLE DUBOIS

MEGAN ELTRINGHAM

MUROW DEVELOPMENT CONSULTANTS

C&C DEVELOPMENT

TRAMMELL CROW RESIDENTIAL

LSA

THE NEW HOME COMPANY

WADE GANES

REENA HACKETT

BRIGHTVIEW DESIGN GROUP

SOCAL GAS COMPANY

VALERIE HARDMAN OUTDOOR DIMENSIONS

ALEX HERNANDEZ

WILLIAM INGRAM

JOHN LAVENDAR

STEVE MCFARLANE

BRANDYWINE HOMES

ROCKWELL LAND COMPANY

LENNAR

CIRCLE M CONTRACTORS

SCOTT PASTERNAK

STEVE MUROW

STEPHANIE NATION

JEFF OKAMOTO

JAMES O'MALLEY

STEVE ORMONDE

MUROW DEVELOPMENT CONSULTANTS

JACKSON TIDUS

BROOKFIELD RESIDENTIAL

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Q&A with Joan Marcus Webb, former Chief Marketing Officer, The New Home Company “I don’t want to call it retirement because I feel too young to be retired,” said Joan Marcus Webb of her recently announced semi-retirement. The 2019 California Housing Foundation Hall of Fame inductee, 2015 BIA Orange County Chapter president and now former Chief Marketing Officer for The New Home Company thought for a moment, then came up with an answer befitting one of the industry’s foremost marketing luminaries: “Let’s just say I believe in term limits and I reached mine. It’s time to make space for the next generation.” She describes her career as one blessed with good fortune; having the good fortune to have three jobs – at Taylor Woodrow (now Taylor Morrison), Laing Luxury and The New Home Company – where she could have spent the rest of her career. Along the way, she touched the lives of thousands, including new homeowners who benefitted from her skills as a design studio director, then a marketing director; the many young women she mentored; and finally, the women and men who have been transformed by BIA Orange County’s Women’s Leadership Conference, which she founded as the Chapter’s president. It could have been very different. She might still be championing human rights at Amnesty International, her first job after graduating from UCLA, or – very differently – still be working for defense contractor McDonnell Douglas, her second job. But one day an old high school friend, Lisa Stuard, called her and changed her life … and new home marketing, for that matter. Stuard’s father, Dale Stuard, a former BIAOC president and at the time president of NAHB, owned Signature Homes, and there was a job there for Joan in their in-house design studio.

Joan Marcus Webb

Former Chief Marketing Officer, The New Home Company

studio for regional president Tom Redwitz. Things changed with a shake-up from London, but Redwitz soon joined Larry Webb to head John Laing Homes’ new luxury division, Laing Luxury, and Joan followed into her second never-leave job, unsuspecting that she and Webb would marry years later. “At Laing Luxury, we were building about 100 or so amazing semi-custom production homes a year with a philosophy focused on incredible design, quality, and industry-leading customer satisfaction. Why would you ever leave a place like that?” Joan said. The answer came when Webb pulled off the brilliantly timed sale of John Laing Homes to Dubai-based Emmar, which at the time was the world’s largest developer. “Their chairman looked at homes all over the world and appreciated more than anything else the magic of what we were doing here in Orange County,” Joan said. “He wanted to bring that to the Middle East and wanted our Laing human capital to teach his divisions how to create Irvine all over the world. Did homebuilders in Egypt want to learn from an American … who was a woman … and Jewish? In a word, no. Then one day I realized that when you have a hairdresser in Dubai, you’re spending too much time there, and that was it.” Fortunately, the third job she’d never want to leave opened up in 2009 as Webb, Redwitz, Wayne Stelmar and Joe Davis formed The New Home Company.

Inside Edition: THE ORANGE COUNTY CHAPTER

Industry Icon Special Feature:

“That was in 1988, and I never looked back,” Joan said. The first job she could have spent the rest of her career at was at Taylor Woodrow, where she headed the design

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Inside Edition: THE ORANGE COUNTY CHAPTER

“We all believed we could do the best work of our lives here, and we did,” Joan said. “As Chief Marketing Officer I had input to our product offering through marketing, sales and the design studio for a company that was building homes buyers loved.” Webb believes product design begins with the answers to three simple questions: who is the buyer, what do they want, and how much can they afford. Thoughtful consumer research is essential to product design and Webb always liked to facilitate her neighborhood focus groups herself so nothing was lost in translation. She has found that today’s desires are all about flexibility, a space that could be a Zoom classroom one day and a home management center the next. Her passion for choice and personalization through the design studio also is a big part of New Home’s product recipe and helps address any unique desires a homebuyer may want. How could someone who thrives on marketing and design walk away from that? “It turns out you walk away from that because your life has changed, you’ve reached your term limit, and you’ve married the CEO who soon decided to transition to Executive Chairman,” Webb said. “Larry and I both decided that we didn’t get married for one of us to be at the office. Besides that, I had to figure out my golf game and how to consistently shoot under 100, so my plan was to step away in early 2020, but then the virus hit and I couldn’t leave my team during the crisis,” said Joan, who has now assumed a new semi-retired role assisting Leonard Miller, CEO of The New Home Company, with special projects.

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But the desire to semi-retire involved more than that. “I always believed that to be a successful marketer you have to have your finger on the pulse of everything – pop culture, technology, music, fashion, trends, media. When I was 40, I said I wouldn’t be relevant and young enough when I was 50. But then at 50 I felt like I was 40, so there was no reason to stop. But now it’s time for people like Megan Eltringham, Joy Gorey, Melanie Andrews and others that have been by my side and whom I’ve had the honor to mentor to step into their own spotlight and lead.” Looking back on her full-time career, one of the threads weaving through it across the years is the role of women in homebuilding. “Early in my career, I remember being keenly aware of being the only or one of a few women in a room full of men. Women seemed to be accepted into some areas of our business, like marketing, H.R. and sales, and nothing else. I appreciate the history of the business, of all the fathers who taught all the sons how to swing a hammer, but to push the industry to its full potential, it was time to diversify our conference rooms and boardrooms.” The opportunity came in 2015 when she became president of the BIAOC Chapter. Many thought it might be a very brief presidency because just as she was taking the position, her husband died in a bicycle accident. But she stayed on and, “I was surrounded with support from all my friends at BIA and the team at The New Home Company. I truly believe my ability to recover was due in large part to our industry.”

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Joan’s first realization that the conference could be a game changer came out of the panel of male company and division presidents she moderated. One of the panelists, Tim Kane of MBK Homes, prepared for the role by calling all the women in his company into the lunchroom and saying, “Tell me about your experience being a woman in this industry.” “It was eye-opening for Tim and he was able to share his new insights with the audience,” Joan recalls. “Doing something like that can be a major perception changer!” As the conference continues to grow in size and significance, Joan believes it has help to shift the industry for the better. “We have more work to do, but we created the spark and the inspiration and are getting men to understand that the key to achieving greater profitability is having a more diverse company. As much as I loved leading the conference for its first five years, my belief in term limits came into play once again and I handed over the chair position to Ali Wolf, Chief Economist for Zonda. I think I left my baby in very good hands.”

While not working to provide thousands of families with new homes they love, Joan found plenty of time to lend her energy, optimism and expertise to the industry. In addition to her informal but invaluable role as mentor to so many mentees and her years of service to BIA/OC as a board member and president, she also served on the

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board of the California Homebuilding Foundation, rising to Chair of the Board of Trustees in 2016, the first woman to hold that position. In 2012, Joan received the B.J. Steward Achievement Award, which recognizes the invaluable contributions of women who have made a significant impact in the industry. In 2015, she received the Max C. Tipton Memorial Award, which for more than 40 years has recognized the most influential thought leaders in the Southern California homebuilding industry for marketing excellence. Looking ahead, she and Larry still have plenty of industry supporting in their plans, starting with serving as advisors to John McManus, longtime Hanley Wood (Builder Magazine) editorial leader and homebuilding thought-leader, in his new venture, The Builder’s Daily, a daily newsletter and fully-integrated web platform. It will focus on American residential real estate development and construction and, with people like the Webbs involved, provide thoughtful, meaningful discussion around solutions to the issues the industry faces today and tomorrow.

Inside Edition: THE ORANGE COUNTY CHAPTER

So, work on the Women’s Conference continued. “My hopes and expectations weren’t crazy,” she recalls. “I just wanted to spark a conversation with the male leaders of the industry. To do that, I had to get them into a room and offer good content. At the first conference, we had Sheryl Palmer, who was proving what women can bring to homebuilding as Chairman and CEO of Taylor Morrison, and the keynote was the first female F-14 Tomcat Fighter Pilot in the US Navy, Carey Lohrenz, author of Fearless Leadership. She was a tremendous draw for both the men and the women in our business.”

There’s just one more question Southern California Builder had to ask Joan, the question so many in the industry share: What’s it like being married to Larry Webb? After she stopped laughing, she said, “It’s just what anyone who knows him would expect because his persona is the same at work as it is at home: Fun, energetic, sports-crazed and competitive, all wrapped up in a big hug! We had worked together for 20 years, we spoke each other’s language, we both have two daughters, and we both believe in our hearts that building homes is a noble thing to do with one’s life. “I adore and love Larry Webb and we have this industry to thank for bringing us together. We make a great team and can’t wait to help the next generation of homebuilders take on the world!”

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BIA of Southern California Orange County Chapter

CURRENT TEAM ROSTER

MEET THE ORANGE COUNTY CHAPTER TEAM

STEVE LAMOTTE

LAURA BARBER

EXECUTIVE OFFICER ORANGE COUNTY CHAPTER

VICE PRESIDENT EVENTS/HR BIASC

KAITLIN RADCLIFF BIASC DIRECTOR OF MEMBERSHIP

LISA MEADOWS

KARISSA WILLETTE

BIASC MEMBER SERVICES MANAGER

BIASC PUBLIC AFFAIRS MANAGER

BIASC ADVISORS * BIASC Vendor/Consultant FOR MORE INFORMATION ON THE BIAOC CHAPTER, PLEASE VISIT BIAOC.COM JORDAN BRANDMAN BIASC LABOR RELATIONS

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BUILDER |

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Stand Together or Fall Apart

The BIA OC has had a long history of fantastic leadership and success. When I was asked to join the Board of Directors in 2019, I will be straight forward – I was a bit apprehensive. I’d imagine like many of you, I long viewed the group as an effective marketing and outreach association, rather than an organization dedicated to addressing the many changes and attacks our industry is enduring. What swayed my decision was when Sunti Kumjim became President, and I saw the shift towards a focus on advocacy begin. It was the spirit and attitude of Sunti Kinjum along with the direction placed by Steve La Motte, Executive Officer of the BIA OC, that I saw the start of a transformation for the group, and one I believe it needs not only to survive as an organization, but to help the building industry survive as a whole. Advocacy doesn’t need to just be a part of the BIA, it needs to be our focus, and our overall mission. Why is Advocacy Important? As Southern California has secured its foothold as one of the most sought after regions in the United States to reside, it’s no secret that SoCal natives and transplants alike have further tightened their grip on the region’s future development, nearly to the point of strangulation. Unfortunately this NIMBY attitude has permeated into some local agencies and government. As we are all too aware, getting a project approved

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James O’Malley

Senior Vice President – Forward Planning, Shopoff Realty Investments

and built in SoCal can be an enormous feat, even for the most well-intentioned and public-focused projects. To put it plainly, our industry, our livelihood, and our future as developers/builders, is under attack. Solely advocating for our own projects and interests is part of what has gotten us into this tough situation. As we all have put our heads down and focused on our own projects and company concerns, we have lost sight of the power we could have as an industrywide team. We need to come together and create a community, a united front where we advocate for each other’s projects just as passionately as we advocate for our own. It’s simple, we either stand together, or we fall apart.

Inside Edition: THE ORANGE COUNTY CHAPTER

ADVOCACY –

It seems many of us may have truly lost sight of the fact that an approval for one project will ultimately translate into subsequent approvals for others, really setting the standard for development across Southern California. If we can focus on treating each other’s victories and challenges, as our own collective victories and challenges, we will be much more successful with our own projects, and also as an overall industry. This is where advocacy for the SoCal building industry must happen. Without strong representation, I fear this industry will see not only a continued downturn, but more battles lost.

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While I am certainly not the only one, I have made a personal effort over the last few years to make the time and commitment to advocate for other projects in the region. I’ve attended multiple City Council meetings as a BIA member, speaking in support of other projects. As an example, last year I attended a City Council meeting in the City of Lake Forest for a Toll Brothers project. It’s important to note, I am not a member of the Lake Forest community, but I am a member of the Builder Community, and as such, I spoke on behalf of our industry for the project in front of the City Council. That hour or two out of my day and two minutes or so at the podium may seem like a small effort, but if we all routinely took that time to advocate for other projects and interests, our voice as a whole would be much louder and harder to ignore. With COVID-19 changing the way public hearings are held, I’d argue that it has become easier than ever before to become a vocal advocate. You don’t even need to leave the comfort of your own home to show up for a fellow BIA member. With zoom meetings, you can remotely sign in and show your support from anywhere, at any time. There is simply no excuse not to help. I’m happy to report that my own advocacy has already been reciprocated through the BIA community. Shopoff Realty Investments’ Magnolia Tank Farm community in Huntington Beach has been the focus of my efforts on behalf of the firm for over 4 years. This project will bring much needed housing to a supply constrained coastal region, but its opposition has been united. Opposition, despite the fact that the project’s former use was housing obsolete oil storage tanks. Like many, this project has been a bit of an uphill battle, and I’m pleased to say we finally received City Council approval in December 2020. I owe a part of this approval to my BIA community. In addition, we had

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both the Carpenters Union and Trades Union call into the hearing and voice their support. Support that I am positive helped move the needle, especially when faced with no growth or special interests voicing their opposition for any change without facts. In addition to showing up for specific projects, showing up to the polls is equally as important! Exercising our constitutional right of voting to support our industry and our livelihood is more critical than ever before. Every project, big or small, has its fate decided by a governing body of people, of some sort. A government body that the people often elect. I would encourage all BIA members to look beyond your personal party affiliation, and vote pro-growth at the ballot box. The BIA does a wonderful job of reviewing and recommending to its members which candidates are pro-growth, and therefore pro-building industry. If we could focus our efforts on getting the right people elected, it would change the game for all of our projects. Having the right leaders in place to stress the need and positivity of growth with housing, jobs, etc. in our SoCal communities is paramount.

Inside Edition: THE ORANGE COUNTY CHAPTER

How Can We Advocate?

So my friends, we are at a crossroads. We have the greatest opportunity to improve our industry simply by coming together and showing up for one another. Growing BIA and its influence should be our ultimate goal, making it a true powerhouse in the industry and community, because the bigger unity we have the more authority we will have. And, if we don’t come together, then not only will our individual projects continue to be more costly and challenged from every angle, the industry itself in Southern California will become less sustainable. So I implore you – Advocate! Be a team player, and help save our great industry and make Southern California’s future brighter in the process.

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Marissa Saldivar CBIA Political Communications

In the current housing market, the reality is that many Californians cannot afford to purchase a home in their own state, effectively widening the racial homeownership gap. At the short end of this crisis are Black and Latino families, whose prospects of homeownership are disproportionately and acutely compromised by California’s staggering home prices. California’s homeowner class has been notably whiter and wealthier than its true demographics for decades. For this reason, CBIA prioritizes a message of Housing for All, or expanding California’s diverse homeownership by increasing home production and supporting legislation that advances housing that is affordable. Housing for All highlights the disparities in homeownership in California, particularly and especially for Black and Latino families who have historically faced undue barriers to acquiring a home. The California Legislature frequently promises to improve Black and Latino homeownership levels, yet acts in contrast to this by routinely imposing new and excessive laws and regulations on homebuilding. In March, a legislative meeting between the State Assembly Housing and Banking Committees was pulled together as a “call to action” to address racial disparities in housing. Ultimately, however, this meeting resulted in little to no substantive solutions. The proposed policy suggestions focused on lowering credit score requirements and mortgage rates rather than acknowledging the issue at the heart of the problem: burdensome building regulations that perpetuate the plight of Black and Latino homeownership.

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Though they may be well-intentioned, the Legislature’s steep regulations on homebuilding both draw out the building process and push additional costs onto consumers. A recent study conducted by the National Association of Homebuilders finds that for every $1,000 home price increase in California, a little over 12,300 families are priced out, or no longer able to afford the home. The ever-growing price tag for a home in California, most recently driven by new regulations imposed by the Legislature, has clearly captured the attention and concern of most Californians. A 2021 statewide survey by the Public Policy Institute of California shows that six in ten Californians think housing affordability is a major problem in their part of the state. The majority of Black respondents (56%) feel that the state has not done enough to make housing more affordable; likely a reflection of their disproportionate share of the impacts of the housing crisis.

Inside Edition: THE RIVERSIDE CHAPTER

California Building Industry Association (CB I A) Update

Without access to affordable homeownership, Black and Latino families are barricaded from both the American dream of owning a home and the wealth-building benefits that it provides. Simply put, high home prices perpetuate racial inequality in homeownership. For racial disparities in California’s homeownership levels to truly be balanced out, the Legislature can no longer turn a blind eye to the part they play in exacerbating the problem.

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Inside Edition: THE ORANGE COUNTY CHAPTER

Adam Wood

Recent Lawsuit May Be

Steven LaMotte

BIA Orange County Chapter Executive Officer

Game Changer in Battle

Against Cities Hostile to New Housing

While there are differing opinions on how to best address California’s dire housing crisis, the fact remains that by any metric, the supply of housing has woefully failed to meet the overwhelming demand. This is particularly true in Southern California, where according to the latest data from the U.S. Census Bureau, the Los Angeles-Orange County area has the lowest homeownership rate in the nation. Just as state leaders have failed to implement any sort of cohesive strategy for meeting the state’s housing needs, local cities that have been outwardly hostile to new home construction also shoulder a significant amount of the blame. Despite the desperate need for new home construction, it’s not uncommon for homebuilders and property owners to be confronted by public officials and local NIMBY (Not In My Backyard) forces that are simply opposed to new housing in their communities. However, a recently filed lawsuit may be a game changer in the battle against anti-housing policies and behavior exhibited by local governments. As reported by the Orange County Register, homebuilder Lennar Homes, along with the property owners of Westridge golf course, have filed a $100 million lawsuit against the city of La Habra relating to the city’s efforts to derail a proposal to create new homes for the community.

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Chief Administrator Building Industry Legal Defense Foundation

As brought before the City Council in October of last year, the homebuilder’s proposal, known as Rancho La Habra, was planned for the privately owned golf course scheduled for closure. Rancho La Habra would have provided close to 450 desperately needed new homes for residents across various income levels. In a city that is significantly below their goal for park space, Rancho La Habra would have also set aside almost 40 acres of new public open space, including a new public park and community center, along with over 4 miles of new trails. In addition, Rancho La Habra would have generated over $1 million in annual revenue to the city’s general fund while also contributing over $50 million for local schools over the next ten years. Ultimately, current La Habra City Councilmembers Jose Medrano and Rose Espinoza, along with former Councilmember Tom Beamish, voted 3-0 to deny the project. Despite the good faith efforts to work in collaboration with the city, both the homebuilder and the property owners were met with a series of unnecessary delays and the imposition of a multitude of costly fees. For example, the lawsuit details how the city disregarded the initial draft environmental impact report, forcing the homebuilder to pay over $1 million to create a new report that the city then refused to certify. The lawsuit

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also outlines how the city charged the homebuilder over $200,000 in legal fees to pay for its lawyers to develop strategies to ultimately prevent any construction. Beyond the city’s egregious behavior, there was also a concerted effort by a small group of wealthy and politically connected homeowners who worked to defeat the project. This particular NIMBY group applied substantial pressure on the city while also spending tens of thousands of dollars on political ads in an attempt to deprive the community of new housing. As stated in the lawsuit, “The City placed political expediency over the rule of law and has let a vocal minority of anti-development City residents run roughshod over due process.” With California’s dire housing crisis, local jurisdictions across the state will undoubtedly be paying close attention to this case. The courts need to send a strong message that should cities act in a manner similar to what occurred in La Habra, cities, and ultimately the taxpayers will be on the hook.

“When we give cheerfully and accept gratefully, everyone is blessed.”

- Maya Angelou General Lyon’s commitment to serving others through education, aviation, and housing has changed the lives of thousands of people in Orange County and in communities nationwide. It is truly a legacy to build on for decades to come. General Lyon, you will never be forgotten.

Watch our video honoring William Lyon

A m e r i c a

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Southern California Builder magazine would like to thank Kovach Marketing for their support – not only as a valued member of the BIASC, but also for being extremely instrumental in the overwhelming success this magazine has achieved. Thank you. -Craig Foster Chief Editor

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BIA of Southern California

MEMBER M E M B E R S Member P O T L I GSpotlight HT SPOTLIGHT BIA ORANGE COUNTY CHAPTER

BIA COUNTY CHAPTER BIA OFORANGE SOUTHERN CALIFORNIA

PLEASE JOIN US IN RECOGNIZING SDK ATELIER

PLEASE JOIN US IN RECOGNIZING COX, CASTLE & NICHOLSON LLP

Please join us in recognizing BIA Member SDK ATELIER. Please join us in recognizing BIA Member Cox, Castle & Nicholson LLP. SDK Atelier is an award-winning architectural firm built on the collaborative process of youthful andLLP seasoned The ability to mentor onein another to improve Cox, Castledesigners & Nicholson is one ofstaff. the largest full-service law and firmsempower specializing real estate in the team members’ skills individually as well aslegal a team is what us. to The studio atmosphere of SDK United states. The firm delivers strategic counsel anddrives services developers, public agencies, thought the design process and allows Atelier'scompanies, office enables free thinking ideas to passpension openly funds, energy lenders, investors,and joint ventures, landlords, tenants, corporations,

everynet-worth member of the team and to participate during project development. others in and the contribute management of their complex real estate, business and high individuals litigation challenges. Founded in 1968, the firm has more than 130 transactional and litigation SDK Atelier's passion is toAngeles, create distinct valuable architecture attorneys in offices in Los Orangeand County and San Francisco.by developing new interpretations

of traditional styles and provide captivating designs that extend across a wide spectrum of markets. of our and SDK Atelier in the has extraordinary capabilityof design has 20 in influencing Cox Castle believes & Nicholson been a member BIA for years, andthe we quality are proud to lives support

that ison whytheir theymission strive toto inspire people discoveraswhy matters. for sustainable communities. For them advocate fortohousing theit foundation more information, visit www.coxcastle.com. sdkatelier.com

coxcastle.com Nominate a BIASC Member to Spotlight! Nominate a BIASC Member to spotlight! Contact kwillette@biasc.org Southern Contact kwillette@biasc.org California BUILDER | April 2021 Nominate a BIASC Member to spotlight!

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BIA ORANGE COUNTY CHAPTER

MEMBER M E M B E R S Member P O T L I GSpotlight HT SPOTLIGHT BIA ORANGE COUNTY CHAPTER

ORANGE COUNTY CHAPTER BIABIA ORANGE COUNTY CHAPTER

PLEASE JOIN US IN RECOGNIZING FOCUS 360

PLEASE JOIN US IN RECOGNIZING COX, CASTLE & NICHOLSON LLP

Please join us in recognizing BIA Member Focus 360. For over Focus BIA 360Member has ledCox, theCastle homebuilding industry Please join30+ us inyears, recognizing & Nicholson LLP.with affordable virtual reality solutions that drive customer sales and yield the greatest results for their clients. Their award-winning studio has created first-class virtual model home tours and in interactive point-ofCox, Castle & Nicholson LLP renderings, is one of theanimations, largest full-service law firms specializing real estate in the 360 is public well known for sale solutions discerning homebuilders United states. for The the firmmost delivers strategic legal counseland anddevelopers. services toFocus developers, agencies, providing concierge-level service, delivering best, on-time within budget.tenants, corporations, energy companies, lenders, investors, joint their ventures, pension and funds, landlords, high net-worth individuals and others in the management of their complex real estate, business and Focus 360challenges. has been aFounded proud BIA 31 years and continues support the association by litigation in member 1968, thefor firm has more than 130 totransactional and litigation investing in NextGen BIA members, and advocating for industry causes. attorneys inthe offices in Losof Angeles, Orangesponsoring County andevents San Francisco. Reach out today to get started on your next project. www.focus360.com/contact. Cox Castle & Nicholson has been a member of BIA for 20 years, and we are proud to support focus360.com them on their mission to advocate for housing as the foundation for sustainable communities. For more information, visit www.coxcastle.com.

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coxcastle.com NominateaaBIASC BIASC Member Nominate Memberto toSpotlight! spotlight! Contactkwillette@biasc.org kwillette@biasc.orgSouthern Contact California BUILDER | Nominate a BIASC Member to spotlight!

April 2021


BIA ORANGE COUNTY CHAPTER

MEMBER M E M B E R S Member P O T L I GSpotlight HT SPOTLIGHT BIA ORANGE COUNTY CHAPTER

ORANGE COUNTY CHAPTER BIABIA ORANGE COUNTY CHAPTER

PLEASE JOIN US IN RECOGNIZING COX, CASTLE & NICHOLSON LLP PLEASE JOIN US IN RECOGNIZING COX, CASTLE & NICHOLSON LLP

Please join us in recognizing BIA Member Cox, Castle & Nicholson LLP. Cox, Castle & Nicholson LLP BIA is one of theCox, largest full-service law firms specializing in real estate in the Please join us in recognizing Member Castle & Nicholson LLP. United states. The firm delivers strategic legal counsel and services to developers, public agencies, energy companies, lenders, jointlargest ventures, pensionlaw funds, tenants, Cox, Castle & Nicholson LLP investors, is one of the full-service firmslandlords, specializing in real corporations, estate in the and others in the management of services their complex real estate, business and high net-worth individuals United states. The firm delivers strategic legal counsel and to developers, public agencies, litigation challenges.lenders, Founded in 1968, firm has more funds, than 130 transactional litigation energy companies, investors, jointthe ventures, pension landlords, tenants, and corporations, attorneys in offices in Los Angeles, Orange County and San Francisco. and others in the management of their complex real estate, business and high net-worth individuals litigation challenges. Founded in 1968, the firm has more than 130 transactional and litigation Cox Castle & Nicholson has been a member 20 years, and we are proud to support attorneys in offices in Los Angeles, Orange County of andBIA Sanfor Francisco. them on their mission to advocate for housing as the foundation for sustainable communities. For more information, visit www.coxcastle.com. Cox Castle & Nicholson has been a member of BIA for 20 years, and we are proud to support coxcastle.com them on their mission to advocate for housing as the foundation for sustainable communities. For more information, visit www.coxcastle.com.

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BIA LOS ANGELES/VENTURA CHAPTER

MEMBER M E M B E R S Member P O T L I GSpotlight HT SPOTLIGHT BIA ORANGE COUNTY CHAPTER

BIAANGELES/VENTURA ORANGE COUNTY CHAPTER BIA LOS CHAPTER

PLEASE JOIN US IN RECOGNIZING RICON STATEGIES

PLEASE JOIN US IN RECOGNIZING COX, CASTLE & NICHOLSON LLP

Please join us in recognizing BIA Member Rincon Strategies. Rincon join Strategies is a full-service communications that has Please us in recognizing BIA Member Cox, Castle agency & Nicholson LLP.over a decade of experience working in and around local government in California. Whether it is navigating the public landscape for organizations, winning over in the a campaign, or crafting compelling message forestate businesses, Cox, Castle & Nicholson LLP voters is one of largest full-service lawa firms specializing in real in the andand politics with to thedevelopers, right mix of capabilities to Rincon is positioned at the intersection business United states. The firm delivers strategicoflegal counsel services public agencies, meet communications objectives. energyallcompanies, lenders, investors, joint ventures, pension funds, landlords, tenants, corporations, high net-worth individuals and others in the management of their complex real estate, business and Rincon has Founded been involved with the BIA-LAV years, with the 130 principal Chris Collier as litigationStrategies challenges. in 1968, firmfor has more than transactional andserving litigation Co-Chair the BIA-LAV Group. In the aftermath of the Woolsey Fire, the attorneys to in offices in Los Ventura Angeles, County Orange Working County and San Francisco. Rincon team worked closely with the BIA to build a website that offered local resources to assist with efforts. recovery Cox Castle & Nicholson has been a member of BIA for 20 years, and we are proud to support them on their mission to advocate rinconstrategies.com for housing as the foundation for sustainable communities. For more information, visit www.coxcastle.com.

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BIA RIVERSIDE COUNTY CHAPTER

MEMBER M E M B E R S Member P O T L I GSpotlight HT SPOTLIGHT BIA ORANGE COUNTY CHAPTER

ORANGECOUNTY COUNTY CHAPTER BIABIA RIVERSIDE CHAPTER

PLEASE JOIN US IN RECOGNIZING RHA LANDSCAPE ARCHITECTS-PLANNERS, INC.

PLEASE JOIN US IN RECOGNIZING COX, CASTLE & NICHOLSON LLP

Please join us in recognizing BIA Member RHA Landscape Architects-Planners, Inc. Established in 1979, RHA Landscape Architects-Planners partners with land developers, home builders, engineers, architects, and public agencies to provide site planning and design services for a wide range Please join us in recognizing BIA Member Cox, Castle & Nicholson LLP. of public and private spaces and facilities. Master Planned Communities Planning Housing/Commercial Cox, Castle & Nicholson LLPand isHousing one ofDevelopment the largest full-serviceMixed law Use firms specializing in real estate in the Planning (K-12 and College/University) UnitedEducation states.Campus The firm delivers strategic legal counsel andHotels/Hospitality/Entertainment services to developers, public agencies, Healthcare Campus Planning

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energyPark companies, lenders, investors, joint Neighborhood) ventures, pension funds,Design landlords, tenants, corporations, & Sports Facility Planning (Regional, Community, Streetscape Historic Rehabilitation Community Workshops & Consensus Building estate, business and high net-worth individuals and others in the management of their complex real litigation challenges. Founded in 1968, the firm has more than 130 transactional and litigation attorneys in offices in Los Angeles, Orange County and San Francisco. We are committed to providing personal service and delivering a product that is on schedule, within budget, and exceeds our client’s expectations Cox Castle & Nicholson has been a member of BIA for 20 years, and we are proud to support them on their mission to advocate for housing as the foundation for sustainable communities. For rhala.com

more information, visit www.coxcastle.com.

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Laurie Davies

California State Assemblywoman, AD 73

I am honored to serve the 73rd District in the California State Assembly. Our District includes: Aliso Viejo, Coto de Caza, Dana Point, Ladera Ranch, Laguna Hills, Laguna Niguel, Las Flores, Mission Viejo, Rancho Mission Viejo, Rancho Santa Margarita, San Clemente, San Juan Capistrano, and Trabuco Canyon.

with the group “Let Them Play” and I am proud to say that as of March 5, 2021 our kids were able to return to the activities they love. Additionally, my office will be hosting a Teen Mental Health Town Hall on Tuesday, April 20 to help teens and parents learn how to reset themselves for a healthy approach back to normalcy.

Prior to being sworn into the Assembly in December, I served as a Councilmember and Mayor in Laguna Niguel. During my eight years on the City Council, I served as a Board Member on the Transportation Corridor Agency. Additionally, I chaired the League of Cities Committee on Transportation, Communication and Public Works. I was elected to the Orange County Transportation Agency, where I sat on the Transit Committee and also chaired the Legislation Committee. I also served on the Board of the Association of California Cities Orange County as President.

With over 1.6 million Californians on unemployment, the Governor has passed the burden on to Legislators’ offices to take on the handling of individuals experiencing problems receiving their unemployment funds. While my office is working with our constituents on resolving their unemployment issues, I have introduced legislation, AB 274, to help combat and tackle the massive fraud reported at the Employment Development Department (EDD). AB 274 would ensure that prepaid debit cards distributed by EDD are equipped with chip-enabled technology. Most credit cards have this as a standard practice to prevent fraud, so I’m bringing this common-sense modification to all debit cards distributed by the EDD.

As we just marked the one-year anniversary of the beginning of the COVID-19 pandemic, it is time that we restore our communities with stability and prosperity. My priorities include keeping our communities safe, getting Californians back to work and getting all our kids back to school full time. I have spent my first few months in office working on providing much needed relief from the effects of COVID-19 from authoring legislation, to assisting constituents with EDD issues, to fighting to get our kids back to doing what they love such as playing sports. During my first weeks in office, I heard the concerns from many local parents that their children were not being allowed to practice or play their sports in local high schools. This resulted in devastating impacts for our children. According to a recent study conducted by the CDC, adolescents aged 12-17 have experienced an increase of 31% in mental health visits. During the last year, children had limited contact with their teachers, friends and missed their athletic sports. In response to this, I sent a letter to the Governor and rallied my colleagues to join me. I partnered

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Inside Edition: THE ORANGE COUNTY CHAPTER

Elected Representative

The Southern California Association of Governments (SCAG) voted to finalize the Regional Housing Needs Assessment (RHNA) numbers last month and I made it one of my first priorities to advocate for more local control so I introduced AB 617. This measure would allow a city or county to swap RHNA numbers with other localities in exchange for funds. While we continue to deal with the COVID-19 crisis and work to get our businesses open and help them survive in an overly regulated environment, I am committed to work as your voice in Sacramento. I look forward to working with the BIA to stop the unnecessary government overreach that continues to limit our housing supply. I want to hear from you. Please contact our office at 949-240-7300 or email me at www://ad73.asmrc.org. With gratitude, Laurie Davies California State Assemblywoman, AD 73

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Inside Edition: THE ORANGE COUNTY CHAPTER

John Burns Realty Housing Outlook:

Scot Wild

VP, John Burns Real Estate Consultant, So Cal Expert

The Stage Is Set For A Strong 2021 In Orange County At the outset of the COVID-19 pandemic, the Orange County housing market nearly ground to a halt. New home sales plummeted from more than 100 per week at the beginning of March to just 9 net sales in the last week of the month. With the economy in lockdown, Orange County had lost 260K jobs by April 2020. Some home builders walked away from land deals and cut staff as they prepared for a prolonged market downturn.

Near-Term Drivers Of The Orange County Housing Market

And then the housing market came roaring back. Many of the job losses proved to be temporary and concentrated on renter segments more than home buyers in Orange County. Weekly new home sales topped 100 again in September 2020. The new home community count dropped 21% year over year in Orange County as projects sold out faster than anticipated. Home builders are in fierce competition for land deals to refill their project pipelines.

All-time low supply in the resale market. Buyers are often frustrated as they attempt to navigate an intensely competitive resale market. 1.1 months of supply in the Orange County resale market represents a 42% decline over the last 12 months. As supply dwindles, homes often sell above their asking prices and buyers are becoming fatigued with the process. One of the strongest advantages new home builders can offer right now is the promise that “we have a home for you.”

Historically low rates are motivating current renters to buy their first home and mature buyer segments to lock a low rate on the homes they plan to retire in. New home communities targeting mature buyers could see a surge in sales as safety concerns related to the pandemic abate.

We recently described this as a high-risk and highreward portion of the housing cycle. In this article we will examine some trends that present opportunities and risks for the Orange County housing market in 2021.

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Inside Edition: THE ORANGE COUNTY CHAPTER

Strong demographics are driving demand for homes, namely the 21–40-year-old cohort, including the Sharers born in the 1980s who are in their prime home buying years and the 1990s Connectors in prime household formation years. Surging home equity is also fueling demand from move-up buyers.

Some Headwinds To Plan For Include: Eroding Affordability. Affordability (monthly payments/income) conditions are now worse than usual in Orange County and most US markets— despite the historically low interest rates. The Burns Affordability Index compares a market to its own historical average affordability level, which is defined as the mid-point (5.0) on the scale shown below. Orange County is currently rated 8.0 in the least affordable tier. Mortgage interest rates are already trending upwards, and this should continue over the next few years. Price appreciation coupled with rising rates will make homes less affordable at all prices points if incomes do not keep pace.

Low supply and strong demographics are pushing prices higher. The Burns Home Value Index™ (BHVI) provides our view of home value trends in existing single-family homes. Each month’s BHVI is based on an “electronic appraisal” of every home in the market, rather than just actual transactions, removing the influence of shifts in mix of home sales. The BHVI has increased 11.8% over the last 12 months in Orange County. We expect home values to increase by 10.9% in 2021. Expect fewer international buyers. This is particularly impactful in Orange County, where buyers coming from China were driving sales for luxury homes more than in any other Southern California market. Some builders have already pivoted away from the luxury market to more affordable sectors targeting a broader demographic.

Surging home equity is fueling the move-up market. An all-time high stock market is boosting confidence to spend on a new homes and home improvements. A projected strong economic recovery (with the highest forecasted GDP growth in 15 years) will likely get stronger with significant government stimulus.

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Some households are leaving high-cost California markets, including Orange County. This trend can be overstated in the media, but it is real. Families are fleeing to more affordable locations farther from the coast like the Inland Empire or to states with lower costs like Arizona, Texas, and Idaho. All that said, Orange County remains an economic powerhouse and a place where people want to live— if they can afford to do so. Demand for homes will Southern | April 2021 California

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continue to outpace supply in Orange County. Builders who can provide homes at attainable prices will continue to find a huge pool of buyers waiting for them. Orange County Is Poised For A Strong 2021. Here Are Some Strategies For Success: Target first-time buyers with higher density product. First-time buyers are often considering resale homes built 30–40 years ago (or more) in Orange County. These homes are much less efficient and come with significant routine maintenance requirements. New homes offer greater energy efficiency, more sustainable building practices, and healthier in-home environments. New homes are also much easier to maintain, particularly attached homes, which is ideal for first-time buyers. Attainable pricing will overcome most objections regarding density, yard space, and parking. Be nimble. Look at smaller projects in infill locations. Many of Orange County’s established suburban neighborhoods have seem little new home development recently. Get creative in where you look for land. Local planning agencies can often guide you to where they see opportunities for redevelopment. Find a master planned community. Two Orange County master plans made our list of the Top-50 MPCs in the nation for 2020: Irvine Ranch (#14) and The Great Park-Irvine (#32). Rancho Mission Viejo should return to this list as they break open new phases in 2022 and 2023. Orange County master plans offer state-of-the-art community amenities and offer builders the opportunity to target a wide range of buyer segments, from entrylevel to age-qualified 55+. Stay informed! Stay at the head of the pack by acknowledging risks and opportunities as they emerge. Get involved with the Orange County BIA! Sign up for JBREC’s newsletters at realestateconsulting.com and connect with one of our local experts.

Outdoor Dimensions would like to celebrate General William Lyon by honoring his many years of service to our country and industry.

OUTDOOR DIMENSIONS

We are proud to have worked alongside both him and his company for many years @OutdoorDimensions CSL# 1042246

714.578.9555

info@outdoordimensions.com OutdoorDimensions.com

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951-781-1930 ext 121 . dougg@rhala.com . www.rhala.com

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Crisis

Crises require clear communication. Period. We do not need demonstrable iterative processes in real time to meet this moment using stretch goals. As Mayor of Newport Beach last year, I repeatedly considered how best to disseminate information. Consistent with my dad’s old advice that “indecision is a decision,” failure to communicate about a topic does not mean the topic is ignored. Instead, you simply create an information vacuum.

Will O’Neill

Newport Beach City Council Member

to disseminate bite-sized pieces of information, particularly to journalists. Instagram caps its text at 2200 characters, which is approximately the length of this article. That cap is a blessing to politicians because it forces focus and bite-sized explanations. Anyone who curses a character cap should recall Winston Churchill’s response when presented with a lengthy document. He said: “This paper, by its very length, defends itself against the risk of being read.”

I saw that first-hand in the lead-up to five large protests in our city in the aftermath of last summer’s civil unrest. Our residents had watched First Amendment activity by many be marred by violence of few in cities across the country. Rumors spread quickly on social media platforms (especially Nextdoor) that looting and rioting were in our city’s near future.

I have instead embraced the character cap and publish a “Quick Daily Update” on Mondays, Wednesdays, and Fridays each week on Instagram and Facebook. I have explained the Governor’s increasingly-complicated color-coded tier system for societal re-openings, local responses to homelessness, RHNA, and many other complicated issues.

I used my personal social media pages to spread information to people quickly and refute the rumors. My goal at the time was simple: be the signal in the noise.

I invite you to follow me on Instagram and Facebook using the handle @RealWillONeill. But more importantly, I ask that you encourage policy-makers throughout our county to employ more effective constituent communication to ensure the safety and prosperity of our communities.

In other words, provide clear, consistent, and transparent communication. Be comfortable saying “I don’t know,” but always follow up with “but I will find out.” Each social media platform requires different approaches. At 280 total characters, Twitter is helpful

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Inside Edition: THE ORANGE COUNTY CHAPTER

Character-Capped Communication In

Will O’Neill was Mayor of Newport Beach in 2020 and currently serves on the Newport Beach City Council. His Twitter, IG, and Facebook handle is: @RealWillONeill

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chamber

Destination Irvine Economic Development

Irvine’s Healthy Outlook For more than a year of collectively enduring the pandemic, good health has been a top concern for just about everyone. For Orange County’s health care providers, it has always been and remains the number one priority. As Irvine emerges as a national leader in direct patient care, major hospital expansion projects have been completed, and more are in various stages of development in the city and neighboring areas. It’s not only good for our health, but it’s also good for the economy. Following the expansion one year ago with a 12,500-square-foot facility in Newport Beach, City of Hope will bring its highly specialized cancer care to more patients in Orange County at its planned $1 billion, 190,000-square-foot cancer treatment and research campus in Irvine. Opening in 2022 on 11 acres at FivePoint Gateway near the Orange County Great Park, City of Hope Orange County’s comprehensive cancer center will provide cancer care, phase I-III clinical trials, precision medicine, early detection and prevention programs, and more. Orange County’s only specialty hospital exclusively dedicated to treating and curing cancer is slated to open on the campus in 2025. The Irvine campus is the centerpiece of a regional network of cancer care that City of Hope is building in Orange County. Adding to its medical center in Orange, University of California, Irvine will build a new $1.2 billion UCI Medical Center Irvine-Newport as part of its Irvine campus. The complex will include a 144-bed worldclass hospital, outpatient specialty medical and surgery

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Bryan Starr

President & CEO, Greater Irvine Chamber

facilities, and the UCI Health Center for Advanced Care. Portions of the complex are projected to open in 2022 and 2023, with the hospital’s completion expected in 2025. A medical stalwart in Orange County for more than 70 years, Hoag Memorial Hospital Presbyterian in late 2020 opened the Fudge Family Birthing Suites at Hoag Hospital Irvine. The facility houses 12 state-of-the-art birthing suites and two C-section operating rooms. In January of 2020, Hoag opened its 45,000 square-foot health and wellness integrated Hoag Health Center Foothill Ranch facility. The Irvine Planning Commission recently approved plans for a sweeping expansion at Hoag’s Irvine campus that will affirm its steady ascension as a global destination for medical excellence and patientfocused outcomes. Physician-led Centers of Excellence in cancer, women’s health, and digestive health will transform Hoag’s delivery of care to an integrated, specialized services-based model. The first phase is scheduled to be completed in 2025.

Inside Edition: THE ORANGE COUNTY CHAPTER

greater irvine

Impressive economic development progress is being made in Orange County’s health care sector—with Irvine leading the way. More than 60 years ago, the Irvine Master Plan laid the groundwork for economic resilience, and still today its provisions for balanced and innovative development proves to be a visionary plan. Major hospital projects in Irvine significantly expand the world-class health care Orange County residents receive and help to ensure a healthy economic future for the region.

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Inside Edition: THE ORANGE COUNTY CHAPTER

Know a Young Professional in the Building Industry?

FEATURED PROGRAMS: Office Hours

Mentorship Program

Morning Buzz

Philanthropy Events

Site Tours

Government Affair Workshops

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www.biaoc.com/nextgen

NextGen is where BIAOC's leaders of tomorrow connect and grow. Nominate an up-andcoming professional in your company today! Contact us for membership info: Chad Davies Zac Torres chad@daviesimaging.com zac.torres@fnf.com

Stay connected with Nextgen! FollowSouthern for Upcoming Events/News: | April 2021 California

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BIAOC - NextGen

@biaocnextgen


Tim Huynh

2021 NextGen Chair Land Acquistion Manager Meritage Homes

Lindsay Hezmalhalch 2021 NextGen Co-Chair Senior Associate, Director,  Client Relations and  Development

The BIA OC NextGen Committee has not lost momentum in 2021 thanks to our virtual events! We want to thank our sponsors and the wonderful NextGen Executive Committee board for their support. So far this year, we hosted two “Morning Buzz” events with respected presidents in our housing industry – Richard Douglass with Trumark Homes in January and Nicole Burdette with Brookfield in April. Both events were well attended, and it was great to sit down and listen to two industry leaders share their knowledge with the younger NextGen audience. Nicole was one of the founding members of NextGen and having her speak as a division president was inspiring. In addition to our Morning Buzz event, we hosted a virtual site tour of Tri Pointe’s Canvas community in Anaheim. This event included another president of our industry, Tom Grable, director of marketing Natalie Barrios, project manager Mike Miller, and architect Jeff Chelwick. The panel lead our group through the process of buying an entitled site and enhancing the products to save cost and increase value. In addition to exposing the NextGen group to a new Southern Californian community, it offered an educational experience on the builder’s mentality when adapting a site to fit their business model.

Inside Edition: THE ORANGE COUNTY CHAPTER

B I A O C NextGen Update :

We have more events planned for the rest of the year to go along with the site tours and Morning Buzzes – including Government Affairs events, philanthropy with HomeAid, and hopefully an in-person social event if we continue to make progress in this pandemic environment. In the meantime, these virtual events have been a great way to “tour” communities with commentary from the builders who developed the projects as well as network with established leaders in our industry. Be on the lookout for upcoming events as we continue to make the most of this virtual world!

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Inside Edition: THE ORANGE COUNTY CHAPTER

BIASC & The Building Industry Technology Academy (BITA)

BITA Program Director

The Building Industry Technology Academy (BITA) is a program of the California Homebuilding Foundation (CHF) whose mission is to cultivate a sustainable industry workforce by educating and inspiring high school students to pursue a career in construction.

However, after careful consideration, the summer internship was postponed knowing the quality of the experience would have been significantly impacted by the social distancing requirements in the workplace due to the coronavirus pandemic.

The Building Industry Association of Southern California (BIASC) joins CHF in recognizing the need for a well-trained employment pool to meet the demand of home production. The BIASC and its in-house chapters have engaged their members in support of BITA through various fundraisers, competitions, expansion efforts, field trips, career fairs and most recently, a workforce development committee to host internships for students and transitioning graduates.

And while 2021 will still be a year of many unknowns, the Alliance is excited to meet with school district partners this spring to discuss ideas for safe programing (mentorships, virtual speaker series etc.) that can be done over the next few months to gear-up for the 2022 summer internship program.

In 2019, the BIA Orange County Chair, Rick Wood from Wood Consulting and Colin Koch from Brookfield Homes formed a coalition of builders and their trade organizations to increase and sustain the next generation of workforce leadership by creating an industry-focused internship program. The SoCal BITA Alliance, in collaboration with the BIA SC Orange County chapter, raised $62,000 for BITA summer internships throughout 2019 with the intention of accommodating 20 paid internships for high school juniors on active jobsites throughout Orange County in the summer of 2020. Recruitment efforts for these internships, kicked-off in March of 2020, by handing out application packets to junior students from 8 of the local BITA schools at a successful meet-the-builder event designed to highlight trades in the industry.

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Jill Herman

Work-based learning experiences are one of the best ways for young adults to become familiar with the skilled trades. Such experiences can generate motivation for students to continue into the trades after graduation. Companies can use summer internships as a pipeline for recruiting graduates, while young people benefit from the real-life work experience. Now is a crucial time to recruit the next generation of homebuilders, as more than one in six young workers have stopped working due to the pandemic. To join the SoCal BITA Alliance by contributing to its mission or providing employment and internship opportunities for BITA students, please contact Jill Herman at jherman@mychf.org

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Inside Edition: THE ORANGE COUNTY CHAPTER CHF and the BIA SC would like to thank the dedicated sponsors and members of the SoCal BITA Alliance: Sponsors: Brookfield Residential, TriPointe Homes, K.Hovnanian, Taylor Morrison, Murrow CM. Members: BIA Orange County, Boudreau Pipeline, Brookfield Residential, C & R Systems, Circle M. Contractors, Coastline ROP, HY-Lang Electric. Inland Empire Framing, Lennar, FCL Builders, North Orange County ROP, 20/20 Plumbing, Schamber Electric, Shea Homes, The New Home Company, TriPointe Homes About the California Homebuilding Foundation:

through scholarships, research, education and professional recognition. If you want to help a BITA student, go to mychf.org to make a donation to the program. CHF is a 501(c)3 nonprofit organization founded in 1978. Jill Herman, BITA Program Director, manages and oversees CHF’s BITA program, which includes expanding the curriculum to campuses statewide, coordinating events to raise awareness for the program, and facilitates interaction with program sites and local industry. She may be reached at jherman@mychf.org

The California Homebuilding Foundation’s mission is to advance the homebuilding industry in California

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GENERAL WILLIAM LYON CONGRATULATIONS ON THE LEGACY OF A LIFETIME

BrookfieldResidential.com

Commercial & Fleet Your go-to dealership for fleet vehicles

CONTACT

TONY FLORES 714.719.4374 74

Southern aflores@stadiumnissanoc.com California

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April 2021


Workforce Housing

Trifecta in the Making Survival is a word that is used frequently in our industry. And the pandemic brought to bear how important its meaning truly is. COVID-19 has been the evil equalizer, foisting upon all of us existential challenges that were seemingly unthinkable prior to March 2020. Anaheim’s experience was no different. The community experienced a total economic and societal shutdown. To survive was no longer something to be hyperbolized to achieve a particular personal or professional goal. It was life or death. The City understood the gravity of what was happening and maintained core city services, preserving our community’s immediate health while we navigated through. The City of Anaheim also knew that if it didn’t continue to implement long-planned neighborhood improvement and development priorities, the wake of the pandemic could be so devastating that some in our community would not survive. And one of the best ways to make that happen is to approve an adequate supply of quality workforce housing. This has always been a key tenet for the City, and without fail, Anaheim persevered to ensure that all its residents and businesses were safeguarded in the years to come. Here’s what will be happening in the city because of the good work done at City Hall in 2020. Angel Stadium Development Plan: The 150-acre development plan calls for up to 5,175 apartments and condominiums with 777 affordable apartments throughout; 2.7 million square feet for Office Space; 1.75 million square feet of retail, restaurants, hotels; a luxury hotel with upwards of 900 rooms; and a 7-acre flagship city park plus 5.2 acres of community park space. The plan also calls for a renovated Angel Stadium of Anaheim or a new 45,000-seat stadium. Beach Boulevard Specific Plan/39 Commons: The Beach Boulevard Specific Plan is anticipated to promote revitalization of the Project Area by implementing market

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Jordan Brandman

Anaheim City Council Member & BIASC Labor Representative

driven land use changes to encourage infill development of currently vacant or underutilized properties. At buildout, the Specific Plan is expected to result in a maximum of 5,128 dwelling units and 2,189,445 square feet of nonresidential development. Anchoring the plan will be the 39 Commons development, a joint venture of Irvinebased Greenlaw Partners and Los Angeles-based Zelman Development Co. that redevelops over 30 acres at the northeast and southeast corners of Beach Boulevard along Lincoln Avenue into a shopping center, townhomes, and community space. The residential component will consist of over 100 for-sale townhomes and the Mixed-use/Retail portions will include a high-end grocery store (Trader Joe’s or WholeFoods), shops, restaurants, and services, and possibly a hotel.

Inside Edition: THE ORANGE COUNTY CHAPTER

Elected Official Update:

ocV!BE (Honda Center and ARTIC site): In tandem with the Angels Stadium Plan, ocV!be, is a proposal by the Samueli Family, owners of the Anaheim Ducks and operators of the Honda Center, to create a 95-acre campus around Honda Center and ARTIC. While the project still requires city approvals, the $3 billion, 115-acre, mixed-use community and live entertainment district development endeavors to include a new 6,000-capacity concert venue, a 68,000 square-foot food hall, a variety of restaurants and retail, two new hotels with 650 total rooms, a 325,000-squarefoot office tower, three unique public plazas surrounding the Honda Center, 1,500 residential apartment units that will include a 15 percent dedication to affordable housing, 30 acres of open space and parks, and a network of pedestrian bridges and walkways, including a landmark bridge over Katella Avenue. Through these and many other exciting projects it will move ahead with in 2021, including approval of the Housing Element re-authorization this Spring, the City of Anaheim will continue to be a workforce housing rampart for the growing Southern California workforce. In doing so, the city won’t just survive, but it will thrive and flourish.

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Inside Edition: THE ORANGE COUNTY CHAPTER 76

Anaheim Emerging From Pandemic With Ambitious Development Projects In The Pipeline The past year has been an unprecedented crisis for Anaheim. Even in the early months of 2020, when the first COVID cases began appearing in the U.S. followed by the initial business closures to “flatten the curve,” few predicted or expected it to become a pandemic of the virulence and endurance it has ultimately displayed. Few cities have been as severely impacted as Anaheim, whose tourism-and-convention economy was uniquely vulnerable to the pandemic. The Disneyland Resort and the ecosystem of hotels, small businesses and vendors that depend on it are the economic engine of the city, providing tens of thousands of jobs and generating half of the city’s general fund revenues.

Todd Ament

President/CEO, Anaheim Chamber of Commerce

When the governor ordered theme parks to close in mid-March 2020, what was initially expected to be a relatively brief shutdown stretched into more than a year. The Disneyland Resort was ultimately forced to lay off more than 30,000 cast members. After hanging on as long as they could, many hotels near Disneyland simply shut down and laid off their employees, while others did their best to limp along at vastly reduced capacity. Hundreds of other small businesses similarly struggled or closed their doors for good. No fans were allowed to attend Angel games, and all events at the Honda Center were cancelled. During the intervening months, the Anaheim Chamber of Commerce and the broader business community continued to press the state to issue re-opening

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Inside Edition: THE ORANGE COUNTY CHAPTER

Disney has just announced its Disneyland Forward initiative to update its development approvals to allow it to develop new theme parks that integrate hotels, retail and entertainment to provide an immersive, While Disney safely re-opened its Florida theme parks last summer, it was not until March of this year that the memorable guest experience. state issued realistic re-opening guidelines for theme At the same time, both the Angels and the Ducks parks, as well as for outdoor stadiums. continue to move forward with visionary plans for the ambitious re-development of their sites into an Anaheim is turning the corner. The Angels will play exciting mix of residential, retail, entertainment and in front of thousands of fans on Opening Day at office space that will transform the Platinum Triangle Angel Stadium. The Disneyland Resort has set April area and cement Anaheim’s position as a world-class 30 as its re-opening date and has enjoyed sold-out destination. attendance at its “Taste of Disney” outdoor dining event. While it will initially be restricted to operating The road to full recovery from the pandemic’s at limited capacity, rapidly falling COVID-19 case devastation will be a long one. The state has yet to rates and accelerating growth in the number of issue guidelines for convention and business meeting vaccinations engender hope the Disneyland Resort guidelines – which are critical to Anaheim’s full can continue increasing capacity – and move forward economic recovery. But we can now see the light at with the opening of its new Avengers Campus at the end of the tunnel, and it grows stronger with each Disney California Adventure. Hotels and Resort Area passing day. businesses are recalling employees and beginning to climb toward recovery. guidelines so these vital industries could devise strategies to resume operations.

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Inside Edition: THE ORANGE COUNTY CHAPTER

B I A O C Feature:

Shopoff Realty Investments Update

William A. Shopoff

President & CEO, Shopoff Realty Investments

It has been an interesting time to be in the housing industry and learn to lead our team through the various issues that we have faced with over the past year. First of all, we had to deal with the immediate impacts of COVID-19, including a virtual shutdown of many parts of our industry, and the fear and anxiety that we all embraced. We then found ourselves in the midst of a tremendous housing boom, led by a combination of low interest rates and people’s desire to redefine shelter. I am pleased to report that our team at Shopoff Realty Investments was up to the task and we managed to obtain entitlements on about 5,000 new homes and apartments. This includes entitlements in SoCal, with 141 townhomes in Chula Vista and 115 townhomes in Anaheim. This was largely done via public hearings or zoom – something I never envisioned would occur, but has ultimately allowed us to continue to move our business forward, and in some cases more efficiently. In fact, we were pleased to deliver several new communities over the past year to our homebuilder clients so they can continue the important work of housing our neighbors. This included a sale to Pulte Homes of a master planned community in Riverside, which will provide 138 homes to that growing area of Southern California. As a company, we are very bullish about continued good fortune in our industry, but remain cautious about the prospect of higher prices coupled with the potential for higher interest rates. As we all know, this is a double whammy to home buyer demand and remains a concern as we move to deliver new projects. Our Parkhouse Residences at Uptown Newport project is set to break ground this Summer, and we believe this type of luxury product will be well-received by new home buyers, as well as those taking advantage of the market, selling larger homes and moving into lock and leave type residences. We see opportunities in the infill markets and have several sites where we intend to change the use from retail/office/industrial to new residential communities. Additionally, we see great opportunities in the single family build-to-rent concept and believe it will be an important component of the future of our industry. In fact, we have a build-to-rent project we are scheduled to break ground in Summer 2021 in La Quinta that we believe will fill a real void in that market for young families and snowbirds alike.

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BIA Riverside LOT Morning Buzz Featuring Greg Shaia: President, Richmond American Homes Wednesday, May 12th at 10:30-12:00 Noon | Location:

Join the BIA Riverside Chapter Leaders of Tomorrow (LOT) for an online Morning Buzz with special guest Greg Shaia, President of Richmond American Homes who currently serves as BIA Riverside Chapter President.

Register at: biasc.org/events or riversidebia.org/events

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Please email lbarber@biasc.org April Questions? 2021

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RHNA vs. Reality

Can California Deliver 3.5 Million New Units?

BIASC Chief Operating Officer

Gov. Gavin Newsom declared in 2019 that “we have to build housing for all,” and set a lofty goal of California adding 3.5 million new housing units by 2025. That’s more than 550,000 units a year. Of course, those of us in the homebuilding industry reacted very positively to having someone in the Governor’s office who appeared willing to support home construction in a big way, even if we were more than a little curious about how far he would be willing to go to reach that goal.

Before going any further, let’s put Newsom’s goal into perspective. His single-year production goal of 550,000 units is far greater than the 315,000 units California actually produced over the last six years. Or look at it this way: Newsome is asking us to produce nearly as many units in just six years as it took California over a century to produce. The state currently has about 4 million housing units, and he’s asking for 3.5 million more!

Then this March, the Southern California Association of Governments (SCAG) announced the final Regional Housing Needs Assessment (RHNA) for the new 6th Cycle. It called for 1,341,827 new units in its six counties by the end of 2029 – 1,335,060 in the BIASC area – or about 168,000 new units annually. SCAG got one thing very right in the new RHNA numbers: They emphasized the market segment that’s most in line with today’s California: the above moderate income homes, which about 45 percent of the total allocations in that segment.

I feel like the dog that’s biting its owner’s hand. I want to be wagging my proverbial tail over all this sudden support from on high, but I can’t because these ambitious goals don’t align well with reality, starting with the problem that production has actually dropped since Newsom announced his housing initiative. In 2018, California built 115,000 single-family and multi-family units, but by 2020 this dropped to 86,400 units, according to First Tuesday Journal. (Yes, in 2020 we had to deal with Covid, but before the virus hit, projections for 2020’s housing starts were a mixed bag, with very few experts thinking it would be a blockbuster year.) For perspective, housing production in the best recent year, 2005, was a bit over 150,000 units, or was less than half of Newsome’s desired pace.

But Sacramento, we have a problem. With half of the state’s population living south of Wilshire Blvd. in Los Angeles (Yes, that’s true!), it’s obvious that the SCAG counties will have to take on the lion’s share of new units. SCAG’s allocations fall well short of even half of Newsome’s 3.5 million-unit goal, let alone being the lion’s share – and they’re giving us four more years to do it than Newsom is.

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Craig Foster

The RHNA mandates can help turn this around because at long last cities that don’t make a serious effort to achieve their RHNA mandates will face meaningful penalties. But CBIA predicts that without

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a coordinated state-wide push to replace obstacles to new housing with incentives, cities like Irvine will take over 2,000 years to meet their low-income RHNA housing goals! That’s really not surprising, because local electeds need more cover than RHNA gives them to the NIMBYs that almost always outnumber project supporters. Still, the new numbers are a start and we can look forward to a lot more 3-2 votes for approval, with the two most politically exposed winking at the majority as they cast their opposing votes, knowing they’ll be returning the favor the next time around. Still, RHNA will not get the job done if affordability isn’t addressed. It does no good to double or triple production if people can’t afford to buy or rent. Or, to put it in a manner more in line with economic reality, production will not double or triple until there are two or three times more people who can afford to buy or rent. Turning that corner will require much, including slowing California’s seemingly unending support for new regulations. Over-regulation is the main reason why a tiny 27 percent of Californians today can afford to purchase a median-priced single-family home. That’s less than half of the 55 percent nationally who can buy that home, according to the California Association of Realtors’ Affordability Index. Regulatory burdens add 20 percent to the cost of a new home in the state, with the worst offending cities adding much more than that. In fact, in one study of the added cost of regulation to homes in over 200 markets across the country, the top 20 most burdensome cities were all in Californian. Can California ever be just a regulator instead of an over-regulator? Can Title 24/CalGreen become just an average set of energy requirements instead of the best in the nation? Can Regional Water Quality Control Boards be allowed to roll back their standards instead of being required to ratchet them up with each

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rewrite? Can the Legislature ever turn their back on the trial lawyers’ lobby and pass meaningful CEQA litigation reform? And most importantly, when will the state admit that the current Vehicle Miles Traveled (VMT) requirements must be scrapped because they are misguided, too complex for implementation and already outdated due to the increase in at-home work brought on by the coronavirus? Who knew we would ever miss the LOS approach, but we’d love to have it return. In closing, Gov. Newsom has called for a “Marshall Plan for Housing” in California, but we have seen nothing of the sort to date. There is no overarching policy, no detailed list of strategies to enact, and no housing czar to implement by California’s Gen. Marshall. Still, there is some hope, if for no other reason that the Legislature professes to really care about the state’s underserved minority communities. If indeed that’s true, one of the best things they could do is make homeownership an attainable dream for California’s poorer residents. History has shown again and again that people want to own a home, and if they believe they can achieve that goal, they will work very hard to attain it – and begin to reap all the financial and social benefits that come with homeownership. All these calls for more homes and cries about the need to address our underserved communities … could it be that we’re heading into a perfect positive storm? Could these two forces converge, forcing California governments from Sacramento to Santa Monica to see over-regulation as the terrible dreamkiller that it truly is? If that were to happen, the governmental barriers to achieving some amazingly large housing starts could begin to fall.

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Recognition &

W inners

4 T H Q U A R T E R S A L E S AWA R D

ROOKIE SALES PROFESSIONAL

Manny Bravo Intracorp Homes/ Strategic Sales & Marketing

SALES PROFESSIONAL

SALES PROFESSIONAL

SALES PROFESSIONAL

Michael Wang The New Home Company

Sharon Lorentzen Williams Homes

Jane Rieder Landsea Homes

Selling Product Priced Under $500k

SALES TEAM

Selling Product Priced $400K-$600K Malia Chesire & CeCe Guyatt The New Home Company

SALES TEAM

Selling Product Priced Over $1M

Melody Simec, Jeanne Stott & Joyce Lee Toll Brothers

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Selling Product Priced $500-999k

Selling Product Priced Over $1M

SALES TEAM

Selling Product Priced $600K-$999K

Rebecca Travell-Szemes, Shelly Kim, Manny Bravo Intracorp Homes / Strategic Sales & Marketing

SHINING STAR AWARD

Awarded to the individual or group who helped sales shine this quarter & achieve success Cecilia “Cece” Thompson, Agnieszka “Agusia” Szczesny, Olinda, Rodriguez, Pamela Berg and Jayson Moser Pardee Homes (Tri Pointe Homes) Southern

California

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Upcoming Events

To p

Q1 AWARDS & HONORS PRESENTED MAY 12TH!

PRODUCER HONORS Total Dollar Volume of Q4 Closed Homes (non-judged)

The New Home Company

Toll Brothers

• • • • • •

• Melody Simec, Jeanne Stott & Joyce Lee: $30,998,877 • Calise Chang & Jennifer Huff: $3,750,000

Malia Chesire & CeCe Guyatt: $538,002 Michael Wang: $383,339 Twanda Beeks: $3,428,000 Kelly Moore: $ 2,840,000 Susan Fiolka, Gilma Drummy: $24,911,745 Tim Macaulay: $729,833

UPCOMING GSMC EVENTS Q2 EVENT: IN PERSON! Artificial Intelligence Consumer Engagement+ Q1 Sales Awards / Top Producer Honors Presented

MAY

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GSMC will host Bassam Salem, a dynamic speaker, inspiring entrepreneur, and the founder & CEO at AtlasRTX. Bassam will give us an in-depth look at how artificial intelligence chatbots alongside human teams create real time experiences that engage the consumer - you won’t want to miss it!

Location: FLIGHT at Tustin Legacy in Tustin; Starts at 4:30 pm REGISTRATION NOW OPEN! greatersmc.com/events

SOILS TO

Southern California

Episode 1: Consumer Trends Featuring: Mollie Carmichael, Principal, ZONDA A NEW educational series hosted by GSMC touching on the many facets of homebuilding, from conceptual ideas to the close of escrow, covering the gamut of Soils to Sales. From acquisition, grading, designs, trends, and smart home incentives, this series will feature many different industry leaders sharing their knowledge. Available to GSMC Members Only!

GreaterSMC.com BUILDER | April 2021

Follow Us: @greatersmc

AVAILABLE ON THE GSMC WEBSITE

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310-421-4777 bmurtaugh@greatwesternhomeloans.com www.greatwesternhomeloans.com Loans are subject to credit approval. Lender guidelines, restrictions and conditions may apply. For information about loan rates, payments, terms, and availability of loan programs, please contact Great Western Home Loans, Inc., NMLS# 1829215. Licensed by the Dept. of Business Oversight under the California Residential Mortgage Lending Act, CA DRE# 02088231.

Novel approaches for a better result. That’s the Haley & Aldrich way.

Through our industry-leading expertise in geotechnical engineering, underground construction, and environmental sciences, Haley & Aldrich is able to anticipate unforeseen circumstances during your development projects. From due diligence to property acquisition and design to construction, our real estate development consultants apply proven, innovative processes and technology to help you achieve successful outcomes — no matter the size or complexity of your project. For more information, contact: Mehdi Miremadi, BCES, QISP Principal Consultant | MMiremadi@haleyaldrich.com

haleyaldrich.com

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Council on SAGE Update:

Forward to 2021

Ike Balmaseda President of SAGE 2021-2022

As we turn the page and look forward into 2021, our Council on SAGE (Shaping Advancements in Generational Environments) continues to provide virtual educational programs in keeping our members informed as we navigate through the effects of the pandemic has caused to Senior Living.

possible, the lessons learned as we keep our eyes on senior community trends. With recent and upcoming webinars, we will learn what effects we are seeing in the industry, what is causing these effects, what can be done to mitigate them, and what we can expect moving forward.

With the pandemic’s disproportionately high impact on everyone, it goes without saying that the senior living community has felt the brunt of COVID-19. Our goal in the coming years is to understand as much as

Stay tuned by joining the Council on SAGE! Ike Balmaseda, President of SAGE 2021-2022

Join the Council on SAGE! The Council on Shaping Advancements in Generational Environments (SAGE) provides the education and networking tools needed to ensure success in building for and serving the senior market. The council offers builders and developers the chance to learn and share information with others in their field, helping them to maintain their competitive edge. To learn more about the Council on SAGE, upcoming events or how to join, contact Membership Services Manager Lisa Meadows at lmeadows@biasc.org or 949-777-3849

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TECHNICK CONSTRUCTION

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Large Retaining Wall

Custom Restaurant Entrance

TECHNICK CONSTRUCTION IRVINE CA 92614 Lic#915758 www.technick.com 888-900-6009 info@technick.com Southern California

Food Factories

Custom Restaurant interior

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Re-Invent, Re-Focus & Re-Connect Marking my one-year anniversary joining the BIASC as Sales Manager for BIS 3.0, I can proudly say I have never seen such a resilient and optimistic industry. As we all navigated through the unprecedented halt Covid restrictions played on our business, and to trade shows and in-person events, I witnessed how we have strived to keep our industry strong. Having served a diverse range of industry sectors in my 25 years of producing and selling conferences and events, I have been closely following the shows that have occurred in recent months. These shows have clearly showcased the vital role face-to-face events play in driving connections, commerce, and growth while delivering real optimism for the future of our industry. BIS 3.0 is poised to return strong as the pandemic recedes, vaccine rollouts advance, and other industry shows start to stage once again. Building Industry manufactures have been working all year to showcase their new product lines and service offerings! Our Builders are eager to source new products and meet the needs of their product hungry customers. BIS 3.0 is what fuels our business for years to come! Our primary focus at BIASC is to identify ways to better serve our customers, our communities, and our industry. Our annual BIS 3.0 September 29-30th promises the same, by producing a safe and secure in-person event. Each year, our highly anticipated BIS show attracts over 1500 key decision makers. Here we share our experiences, get educated on the current Building Industry practices, and re-connect

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Lisa Lundrigan

Sales Manager, BIS 3.0

with a vibrant community of builders, associates and suppliers. Our location at the Pechanga Resort & Casino in Temecula remains a key selling point for those people who still have reservations about: a) getting on a plane with strangers; and b) staying at a hotel with travelers from different regions. Exhibit & Sponsorship sales remain strong, and we are pacing ahead at a 60% sellout for our September 29-30th show. Space is limited, so I encourage you to reach out to me to discuss the show. Exhibiting has many benefits in not only showing, but taking part in our popular Golf Tournament, Winery Tour, Receptions and our Meet the Builder series. Our exhibit & sponsorship packages provide maximum exposure opportunities, member only discounts, plus one free hotel night for you or your staff at the beautiful Pechanga Resort & Casino, 2 Meet the Builder passes and tickets to our sponsored Builder Kick-Off reception. Registration is open and as always, Builders attend for free! Our team is currently working on new additions to the show such as educational programming, outdoor receptions and more, so please stay tuned for show updates at www.buildingindustryshow.com. Mark Your Calendars for an Event you can’t afford to miss! On behalf of all of us at BIASC, we can’t wait to meet face-to-face again!

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Advertise Your Business Introducing The BIA AFFINITY DIRECTORY Featuring Exclusive Member To Member Offers And Discounts

Introducing BIA of Southern California’s New Affinity Directory! Easily browse through BIA member companies’ exclusive offers and discounts on products and services, member to member. Don’t miss out on this exclusive member promotional opportunity - Reserve your spot in BIASC’s Affinity Directory today! For questions, please email info.affinity@biasc.org

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biasc.org/affinity

Ad Size

Ad Price

Standard Ad: Includes name, company email, phone and one sentence promoting a member discount or offer

Complimentary

2” x 2”

$75

4” x 2”

$100

2” x 4”

$100

4” x 4”

$150

3.875” x 5.6” (quarter page)

$200

8.25” x 5.6” (horizontal half page)

$350

5.6” x 8.25” (vertical half page)

$350

8.25” x 10.75” (full page)

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$500

April 2021


B I A Los Angeles/ Ventura Chapter Update:

Diana Coronado

BIA Los Angeles/Ventura Chapter Vice President

Over the first quarter of 2021, we’ve seen an evolution of normalcy come back into our lives. While we are still operating under strict COVID-19 protocols, we can all see the light at the end of the tunnel. In Los Angeles County nearly 4 million residents have received a vaccine and in Ventura County nearly 250,000 have been administered. Our vaccination percentages have allowed both Counties to move into less restrictive tiers, opening up more indoor dinning, local businesses, sports and even live music and theatre guidelines have been issued. This is allowing our Chapter to begin focusing on potential inperson events, such as the possibility of an in-person Awards & Installation Gala (save the date for December 2, 2021!), and a return in-person meetings. As we begin to pivot to meet the opportunities that are being reintroduced to us, simultaneously we have still been working through the virtual space to bring our members quality programing and support. AS an example, BIA-LAV has been able to work on nine individual member projects. We have helped trouble shoot through city planning and building departments, expedite permitting, testify at public hearings, send letters of support and launch click-to-action letter campaigns. Our relationships with city and county staff and our investment in electronic action advocacy has allowed us to successfully deliver positive outcomes for our members. We anticipate that by the end of the year we will likely help between 25 – 30 members’ projects. To learn more about how we may be able to help you in the Los Angeles or Ventura jurisdiction please email us here.

reduce the impact of a wood construction prohibition in the City of LA. In March, BIA-LAV testified against the item at the City’s Public Safety Committee meeting and the final outcome eventuated in the adoption of BIA requested amendments and kept the Motion from moving forward as an Ordinance. While these fights are not over, these victories are still good news! Learn more on these items and others, here. The policies being deliberated in our jurisdictions will also have significant effects on housing and production opportunities. Our BIA-LAV Chapter region and the City’s in the rest of the State are all updating their Housing Elements and Safety Elements which have led to several General Plan updates, too. BIA-LAV has been actively engaged in several updates including Calabasas, Culver City, LA County, LA City, Lancaster, Palmdale and Ventura City and County. In addition, the City of LA is in the processes of updating their Community Plans, including the Hollywood and Downtown plans. At the same time, BIA-LAV is still remaining vigilant in advocating for common sense Vehicle Miles Traveled (VMT) mitigation measures and thresholds, particularly in LA County and LA City. Where cities and counties regulate, plan for, zone and prepare for housing is not only critical to meeting the needs of our State housing crisis but dictates homeownership opportunities and directly affects where our members can build homes in the future. For these reasons, BIA is committed to ensuring or members voices are being heard.

As we move into quarter two of 2021 I, and all of our BIASC staff, are hopeful that the return to a semblance of On the advocacy front, BIA-LAV has experienced some exciting normalcy is not too far off. We are preparing for exciting short-term wins! As many of you know, over the last four opportunities ahead, and we will continue to meet the needs years, we have been fighting the LA County Art Ordinance from of our members on virtual platforms. None of the work we imposing a 1% building valuation fee on construction for the do would be possible without the dedication of our Board production of art. For the fourth time, BIA-LAV has secured President, Dave Little of TriPointe Homes and our 2021 Board a delay to the Ordinance’s hearing date, from March 2021 to of Directors. We are lucky to have them as advocates for our September 2021. While this does not get rid of the Ordinance, Chapter and our industry. The year has been off to a great start we are using every tool available to us to ensure there are no and we are continuing to move ahead with strong momentum, unnecessary costs added to the development of housing. Also well fought victories and much more to look forward to! notable, we are pleased to report that we have been able to

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B I A Riverside Chapter Update:

Lou Monville

BIA Riverside County Chapter Interim Executive Officer

Greetings BIA Members, Spring has arrived and Q1 of 2021 is now behind us. In many ways 2021 stared right where 2020 left off for our industry: optimism for the end of the Covid-19 pandemic is on the rise, home buyer demand remains high but skilled labor shortages and commodities pricing remain a challenge for home builders. However, our members continue to persevere and are delivering the dream of home ownership to families throughout Riverside County. On the advocacy front the Riverside Chapter continues to engage local jurisdictions on issues critical to our members. With the MSHCP increase set to go into effect on June 30, 2021 we continue to work with our local cities on implementation and appreciate their assistance is setting up systems to allow builders to pre-pay fees in advance of the increase. This effort is helping our members maintain housing affordability for new home buyers. We are also closely monitoring discussions about potential changes to CFD policies. These conversations could have dangerous impacts to home affordability but also our industry’s ability to deliver critical water, road, park and school infrastructure that every community needs and deserves. Finally, our Chapter continues to lead efforts for a safe reopening of the economy as we emerge from Covid-19 and ensure that the essential services our members need continue to be readily available. Spring is also an exciting time for events at the Riverside Chapter. Our annual spring golf tournament on April 9th is sold out! I know we are all looking forward to seeing friends and colleagues, in a safe and socially distanced fashion at the event. I want to thank all of our sponsors and participants for their enthusiastic support. I also want to thank our golf committee lead by Doug Grove and our VP of Events Laura Barber for all of their efforts to make it a great day for all. Lastly, Spring is also a time for new beginnings and speaking of new beginnings the Riverside County Chapter of the BIA is excited to partner with the newly named Riverside County CEO Jeff Van Wagenen Jr. Van Wagenen has more than 14 years of public service experience as well as 10 years in the private sector. Our chapter has had a long and mutually beneficial relationship with the County of Riverside and we look forward to growing that partnership under Jeff’s leadership. As always, if our chapter can be of assistance to you please feel free to contact me directly at EO@riversidebia.org

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B I A Baldy View Chapter Update:

Carlos Rodriguez

BIA Baldy View Chapter Executive Officer

The following Q1 snapshot provides some of the recent advocacy efforts critical to assisting BIA Members including: • COVID-19 Update - According to Board of Supervisors Chairman Curt Hagman, San Bernardino County’s effort to vaccinate all of its residents will shift into high gear on April 1 when everyone age 50 and over will be eligible for vaccination, and accelerate even more on April 15 when everyone 16 and over will be eligible, regardless of health condition or occupation. County and Public Health officials have confirmed that construction workers would be eligible under the industrial, commercial, residential, and sheltering group classified under 1B, Tier 2. This group is currently not one of the groups eligible for vaccinations. For more details click the following link (https://covid19.ca.gov/essentialworkforce/).

• Ontario - City staff agreed to having a designated municipal utility reps assigned to help the close-out and transition from a Developer (home builder) to an HOA with respect to meter deposit refunds and construction use account settlement. • Victorville Planning Commission workshop The City of Victorville currently requires block balls for fencing on all residential projects. BIABV will provide a presentation in April urging the Planning Commission to allow the use of vinyl fencing. • Hesperia Unified School District - Hesperia USD implemented BIABV school fee methodology best practices resulting in a reduction of Level II fees from $5.36 to $4.87 on March 1.

• Victor Elementary School District - Victor Elementary SD implemented BIABV school fee methodology best practices resulting in a reduction of Level II fees from $2.75 to $2.57 sf. • RHNA toolkit webinar - The BIA Baldy View Chapter (BIABV) in coordination with the Building Industry • Rancho Cucamonga DIF Deferral - City officials Legal Defense Foundation (BILD) hosted a Regional are finalizing a new policy to allow the option for Housing Needs Assessment (RHNA) “toolkit” webinar payment of DIFs prior to final inspection. to provide cities with best practice strategies. The • Pomona Inclusionary Zoning Grandfather webinar featured BIASC President Dave Bartlett, Implementation - BIABV secured a 45-day grace Brookfield Residential, Ontario Mayor Pro Tem Alan period for all project applications deemed complete Wapner, Menifee Community Development Director enabling numerous projects to secure a fee Cheryl Kitzerow and Jennifer Hernandez, BILD. exemption. Click here to watch https://www.youtube.com/ watch?v=j180b6pJgJw • Fontana Unified School District - Postponed consideration of an increase from approximately $4 to • County of San Bernardino - BIABV supported the $10 per square foot. San Bernardino County Board of Supervisors vote to participate in the Statewide Community Infrastructure For more information please contact BIA Baldy Program (SCIP). The purpose of the SCIP is to allow property owners to finance Development Impact Fees View Chapter Executive Officer Carlos Rodriguez at carlos@biabuild.com through the issuance of tax-exempt bonds. Initiative the SCIP would be at the discretion of the property owner to opt into the program.

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Member News:

Southern California Gas Company Sets Bold Net Zero Emissions Pledge Largest U.S. gas distribution utility commits to achieving net zero scope 1,2 and 3 greenhouse gas (GHG) emissions by 2045 Commitment aligns with Paris Climate Agreement and demonstrates the foundational role of gas infrastructure in advancing California’s carbon neutral economy LOS ANGELES, March 23, 2021 /PRNewswire/ -Southern California Gas Co. (SoCalGas), the largest gas utility in the U.S., today announced the company’s bold commitment to achieve net zero greenhouse gas (GHG) emissions in its operations and delivery of energy by 2045. This commitment makes SoCalGas the largest gas distribution utility in North America to set a net zero target including scopes 1, 2, and 3 GHG emissions, which would eliminate not only its own direct emissions, but also those generated by customers’ energy delivered by SoCalGas’ energy infrastructure.1 SoCalGas’ commitment aligns with the Paris Climate Agreement’s recommendations and reflects the company’s focus on supporting California with a resilient gas grid through the energy transition to support a carbon neutral economy.

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“Our mission is to build the cleanest, safest and most innovative energy company in America,” said Scott Drury, SoCalGas CEO. “We will lead the energy transition by providing clean fuels and innovative technologies essential to carbon neutrality for California. Through collaboration and partnership, California can develop clean energy solutions at scale and serve as a global beacon for energy innovation.” SoCalGas, which serves nearly 22 million residents, representing half the state’s population, has a long record of emissions reduction progress in support of California’s environmental goals. This includes implementing energy efficiency programs, delivering increasing amounts of carbon-negative renewable natural gas (RNG), and developing zero-carbon hydrogen technologies, among others. These efforts have resulted in carbon reductions of over 3.2 million metric tons of carbon dioxide equivalent (CO2e), the equivalent of removing more than 700,000 passenger vehicles off the road for an entire year. Over the next five years, SoCalGas plans to invest in initiatives to decarbonize, diversify, and digitalize the business. To guide SoCalGas’ path to net zero, the company released a Climate Commitment Announcement. Select commitments along SoCalGas’ path to net zero include:

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By 2025 to: • Achieve net zero energy for 100% of SoCalGas’ newly constructed buildings and major renovations of buildings over 10,000 square feet. • Replace 50% of SoCalGas’ over-the-road fleet with electric, hybrid, natural gas, and/or fuel cell electric vehicles. • Establish statewide hydrogen blending standards. • Complete five hydrogen pilot projects. By 2030 to: • Eliminate 100% of vented gas during planned transmission pipeline work. • Achieve net zero energy for 50% of all SoCalGas existing buildings. • Deliver 20% renewable natural gas. By 2035 to: • Operate a 100% zero emissions over-the-road fleet. • Achieve net zero energy for 100% of SoCalGas buildings. Key stakeholders praised the announcement, citing the need for zero and low-carbon gases that can support renewable electricity production. “SoCalGas’ bold climate pledge demonstrates their commitment to helping California reach its goal of carbon neutrality,” said California Sen. Bob Archuleta. “I’ve fought for investments in hydrogen and other clean fuel technologies because I know that gas infrastructure will be needed to provide reliable energy in a net zero carbon economy. I’m thrilled SoCalGas is leading the nation in these innovations, and that they’re beginning here in the 32nd Senate District.” California Assemblymember Cristina Garcia commented, “To get to net zero in California, we need lawmakers and state agencies to engage the support and partnership of all stakeholders—universities,

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investors, communities, and businesses, including energy providers like SoCalGas. Because as California brings on more and more renewable electricity, we need to ensure we have all the tools in our toolbelt – solar, wind, hydrogen and renewable natural gas, and all other renewable clean sources–to work together to ensure grid reliability while still meeting our clean air and climate change goals.” “Converting electricity into fuel is a critical technology that will solve many issues for storing electricity longterm and for decarbonized transportation fuels within our existing infrastructure,” said Nate Lewis, George L. Argyros Professor of Chemistry at the California Institute of Technology. “The linchpin is converting electricity to fuels, and SoCalGas’ dedication to these solutions will help California reach carbon-neutrality faster and more cost-effectively.” “I’m proud to help SoCalGas announce its commitment to net zero emissions by 2045,” said Mayor Claudia Frometa of Downey, California. “As the birthplace of the Apollo space program and the testing site for many of the nation’s greatest aviation and space endeavors, Downey has a long history of innovation. It’s perfectly fitting SoCalGas announce its commitment and plan for their new Hydrogen Home right here in Downey.” For more information and our latest news, visit newsroom.socalgas.com About SoCalGas Headquartered in Los Angeles, SoCalGas® is the largest gas distribution utility in the United States. SoCalGas delivers affordable, reliable, clean and increasingly renewable gas service to 21.8 million consumers across 24,000 square miles of Central and Southern California, where more than 90% of residents use natural gas for heating, hot water, cooking, drying clothes or other uses. Gas delivered through the company’s pipelines also plays a key role in providing electricity to Californians— about 45 percent of electric power generated in the state comes from gasfired power plants.

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April 2021


SoCalGas’ mission is to build the cleanest, safest and most innovative energy company in America. In support of that mission, SoCalGas has committed to achieving net-zero greenhouse gas emissions in its operations and delivery of energy by 2045. SoCalGas is also committed to investing in its gas delivery infrastructure while keeping bills affordable for customers. Over the past five years, the company invested nearly $7.5 billion to upgrade and modernize its pipeline system to enhance safety and reliability. SoCalGas is a subsidiary of Sempra Energy (NYSE: SRE), an energy services holding company based in San Diego. For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook. This press release contains statements that constitute forwardlooking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. In this press release, forward-looking statements can be identified by words such as “believes,” “expects,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “under construction,” “in development,” “target,” “outlook,” “maintain,” “continue,” or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. Factors, among others, that could cause actual results and events to differ materially from those described in any forwardlooking statements include risks and uncertainties relating to: decisions, investigations, regulations, issuances or revocations of permits and other authorizations, renewals of franchises, and other actions by (i) the California Public Utilities Commission (CPUC), U.S. Department of Energy, and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S.; the success of business development efforts and construction projects, including risks in (i) completing construction projects or other transactions on schedule and budget, (ii) the ability to realize anticipated benefits from any of these efforts if completed, and (iii) obtaining the consent of partners or other third parties; the resolution of civil and criminal

Southern California

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April 2021

litigation, regulatory inquiries, investigations and proceedings, and arbitrations, including, among others, those related to the natural gas leak at the Aliso Canyon natural gas storage facility; the impact of the COVID-19 pandemic on our capital projects, regulatory approval processes, supply chain, liquidity and execution of operations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; moves to reduce or eliminate reliance on natural gas and the impact of volatility of oil prices on our businesses and development projects; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas and natural gas storage capacity, including disruptions caused by limitations on the withdrawal of natural gas from storage facilities and equipment failures; cybersecurity threats to the storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; volatility in interest and inflation rates and commodity prices and our ability to effectively hedge these risks; changes in tax policies, laws and regulations; and other uncertainties, some of which may be difficult to predict and are beyond our control. These risks and uncertainties are further discussed in the reports that the company has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC’s website, www. sec.gov. Investors should not rely unduly on any forward-looking statements. Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, San Diego Gas & Electric Company (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC. 1

Scopes 1, 2 and 3 emissions

SOURCE Southern California Gas Company For further information: Chris Gilbride, Office of Media and Public Information, (213) 244-2442, cgilbride@socalgas.com

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