April 2015 Building Buzz

Page 1


2 0 1 5

President’s Letter

No Rest for the Weary | page 3

City/County Beat

Keep Worksites Clean | page 6


Home Show Recap | page 8

National News

Lumber Liquidator Responds to Claims | page 10


Staying Involved | page 14

Page 2

BMHBA Building Buzz

April 2015

Building Buzz Publisher/Editor: Dot Frank Layout Editor: Michael L. Quinn Building Buzz is a publication of the Bismarck-Mandan Home Builders Association 2600 Gateway Ave., Suite 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730

Your membership is three-in-one: BMHBA, NDAB and NAHB

Scan to visit www.bmhba.com

Like Us! www.facebook.com/bmhba Follow Us! www.twitter.com/bmhba

Professionals building our community through promotion of home ownership, education and legislation since 1958.

Bismarck-Mandan Permit Reports Through February 2015 Bismarck

- monthly/yearly permit reports can be found at www.bismarck.org

Permit Type

YTD 2015

YTD 2014

Single Family Multi-Family Commercial

3/$0.71M 0/$0M 6/$1.18M

6/$0.96M 3/$N/A 10/$1.06M


- monthly/yearly permit reports can be found at www.cityofmandan.com

Permit Type

YTD 2015

YTD 2014

Single Family Multi-Family Commercial

1/$0.35M 0/$0M 0/$0M

1/$0.03M 0/$0M 0/$0M


- monthly/yearly permit reports can be found at www.cityoflincolnnd.com

Permit Type

YTD 2015

YTD 2014

Single Family Multi-Family Commercial

0/$0M 0/$0M 0/$0M

1/$0M 0/$0M 0/$0M

Burleigh County

- monthly/yearly permit reports can be found at www.co.burleigh.nd.us

Permit Type

YTD 2015

YTD 2014

Single Family Multi-Family Commercial

1/$0.44M 0/$0M 0/$0M

1/$0.84M 0/$0M 0/$0M

Morton County

- monthly/yearly permit reports can be found at www.co.morton.nd.us

Permit Type

YTD 2015

YTD 2014

Single Family Multi-Family Commercial

0/$0M 0/$0M 0/$0M

0/$0M 0/$0M 0/$0M

Page 3

BMHBA Building Buzz

April 2015

A Word from Our President


e survived and the 38th Annual Home Show thrived! Thank you members for turning out to help pull off the biggest Home Show to date. More than 7,200 adults attended our annual event setting a new record for attendance. All this despite a tough pull by Mother Nature to keep people outdoors that warm weekend.

This year’s event ushered in 13% more people than 2014 and Drew Knutson Board President 10% more than our previous record attendance set in 2013. All exhibitors should have received an invitation via email to share their experiences and shape next year’s show through a survey. If you didn’t get that message, please contact the office at 222-2400 to get the details. Additionally, mark your calendars for the 2016 Home Show, which is Feb. 19-21. No rest for the weary, association staff and the Parade of Homes Committee is hard at work preparing for the Spring Parade of Homes. To-date, we have 44 homes registered to go on display the last weekend of April and the first weekend of May. Please display the enclosed flyer at your place of business to help us promote this premier event. April also brings our first Building Officials Roundtable event of the year. This is an invaluable meeting with area building, inspection, storm water, planning and zoning

Save the Date: Building Officials Roundtable April 16 - 11:30am Building officials address specific concerns and offer recommendations for improved department services. Lunch will be provided. Bismarck City Public Works Building, 601 S 26th Street. Register at BMHBA.com.

officials. In an effort to maximize the time we get with these leaders and address all of your questions and concerns, please share the topics you’d like discussed in advance with association staff. You may anonymously share your questions online at surveymonkey.com/r/BMHBA_BOR. Pre-registration is required and you may RSVP to attend at bmhba.com/events or by calling 222-2400. The industry celebrates New Homes Month in April. We’re pushing the benefits of new construction through social media all month and encourage you to share the posts through your Facebook pages. Find and like us at facebook.com/bmhba.

As business picks up and you start logging long days and nights, don’t forget to take time to reenergize and reconnect by attending BMHBA events. We’ve got them all up on our events calendar so you can carve out time for yourself this summer. Remember to encourage your staff and subs to attend too. Until May, Drew Knutson President




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Page 4

BMHBA Building Buzz February 2015 New Members

Custom Stripes Automotive Accessories & Recreation | Austin Roller www.customstripesrc.com Legacy Property Maintenance | Tricia Zinke www.legacypropertymaintenance.net | Lawn Care, Snow Removal Meadowlands Development | Barry Jennings

April 2015 Anniversaries Advanced Mechanical, Inc. | Brian Benz www.advanced-mechanical.com | Heating & HVAC, Plumbing Contractor BSC Carpentry | Earl Torgerson | Carpentry City Air Mechanical, Inc. | Heather Jones | www.cityairmechanical.com Heating & HVAC, Plumbing Contractor Dakota Awards, Inc. | Dick Townsend | www.dakawards.com Promotional Products Diversity Homes | Shannon Reichenberg | www.diversityhomesnd.com Home Builder E Homes, Inc. | Travis Welle Home Builders (Custom) | Home Builders (Multi-Family) First Class Finishes, Inc. | Wayne Schumacher | firstclassfinishes.com Drywall Gate City Bank | Greg Ellwein | www.gatecitybank.com | Mortgages Granite Creations, Inc. | Shawn Orbeck | www.granitecreationsonline.com Countertops, Granite Countertops GreenLight Systems | Ron Stotz | www.greenlightsystemsnd.com Audio/Video, Electronic Technology, Energy Efficiency, Home Theaters, Security Hirshfield’s Paints & Coatings | Mark Baumiller | www.hirshfields.com Industrial Coatings, Paint Supplier Integrity Landscapes, LLC | Brandon Bailey | www.integritylandscapesllc.com Landscaping Kaelberer Construction, Inc. | Mitchell Kaelberer Dirt Hauling, Excavating, Snow Removal, Demolition Kinnebrew Contracting LLC | Mark Kinnebrew General Contractor, Remodeling, Carpentry, Home Builder Knife River | www.kniferiver.com | Concrete Contractor Kramer Agency | Pat A. Thomas | www.krameragency.com | Insurance

April 2015

2015 Board of Directors PRESIDENT Drew Knutson Knutson Homes, Inc. Phone: (701) 258-3464

PAST PRESIDENT Vance Vetter Vance Vetter Homes Phone: (701) 751-8218

2ND VICE PRESIDENT Shannon Reichenberg Diversity Homes Phone: (701) 220-8177

Paula Haider Haider Glass Specialties Phone: (701) 250-6787

1ST VICE PRESIDENT Greg Zenker Ferguson Enterprises Phone: (701) 663-2446

SECRETARY/TREASURER Lynn Klein Gate City Bank Phone: (701) 355-7633 Chad Moldenhauer K & L Homes, Inc. Phone: (701) 258-4584

Susie Franklin Capital Credit Union Phone: (701) 255-0042

Jeff Sattler Sattler Homes Phone: (701) 255-7628

Nathan Jones Tollberg Homes Phone: (763) 205-2037

Bill Schmid Townsquare Media Phone: (701) 250-6602

Parker Pladson Venture Building Co. Phone: (701) 290-6734


Now als

! Mandan Scott Bullinger

Aaron Wentz

Marchus Homes, Inc. | Rick Marchus | www.marchushomes.com General Contractor, Home Builders (Custom), Home Designing, Carpentry Montana Dakota Utilities Co. | Jayden Veil| www.montana-dakota.com Energy, Energy Efficiency ND Manufactured Housing | Camie Moshbrucker | www.ndmha.com Manufactured Homes

Leanne Holzer

Susie Franklin

One Source Lighting | Wayne Solberg | www.onesourcelighting.com Energy Efficiency, Home Furnishings, Interior Design, Lighting, Mirrors, Home Paradise Screen Printing LLC | Vanessa Haack | www.halftonedapparel.com Business Services, Printing, Promotional Products Plains Commerce Bank Loan Production Office | Chris Vinson www.plainscommerce.com | Mortgages Puklich Chevrolet | Heidi Baszler | www.puklichchevrolet.com Auto Parts/Service, Auto Sales Sparling Construction | Todd Frietag | www.sparlingconstruction.com Remodeling SPS Companies, Inc. | Wes Renner | www.spscompanies.com Fireplaces & Stoves, Plumbing & HVAC Supplier TK Homes, Inc. | Tom Kunz Home Builders (Custom), Home Builders (Multi-Family), Home Builder Top Notch Construction, Inc. | Myron Jahner Framers, Wall Systems Vance Vetter Homes | Vance Vetter | www.vancevetterhomes.com General Contractor, Home Builders (Custom), Home Builders (Multi-Family) Zimmerman’s Furniture | Gene Zimmerman | zimmermansfurniture.com Home Furnishings

Apply online at www.capcu.org/fast_loans, or call 255-0042 or 1-800-735-6922 today.

Roxy Praus

Chris Fraser

April 2015

BMHBA Building Buzz

Page 5

Route Reaches 44 for the HBA Spring Parade of Homes 31 Builders will open 44 homes for public viewing April 24-26 and May 1-3 BMHBA will host its annual Spring Parade of Homes during the last weekend in April and first weekend in May. “Last year’s parade set record attendance and home entry records,” says 2015 Parade of Homes Chairwoman Lindsey Matter, from Starion Financial. “I’m excited to announce that this year’s parade is equally impressive with 44 homes on tour constructed by 31 builders.” Matter continued to share that the Spring Parade will feature the popular Parade of Homes smartphone app that provides attendees with turn-by-turn directions, home details and builder profiles. “The app is a wonderful tool that we encourage everyone to access. It’s a resource to use before, during and after the event,” Matter said. Free of charge, the app is available for Apple and Android devices by searching “ParadeSmart.”

The BMHBA Spring Parade of Homes allows spectators to check out new construction as they visit each of the homes over the course of two weekends. Tickets are available at any home on the Parade route for $10 each, children 18 and under are free. The tickets are good for admission at every home and are valid for both weekends. “We had a tremendous response to our charitable contribution last year and we’ll continue to dedicate a portion of the Parade’s proceeds to a local cause,” said Matter. “Last fall more than $4600 was donated to Homes for Our Troops. We’ll support local vet Mark Haegele through this year’s ticket sales.” The Spring Parade of Homes runs April 24-26 and May 1-3. Viewing times are 6-8:30 p.m. on Friday, 11 a.m. to 5 p.m. on Saturday, and 12-5 p.m. on Sunday. Visit www.bmhba.com for more information.

Member Ready to Photograph Parade Homes A photo is worth a thousand words and does wonders to help draw spectators to our Parade of Homes. With that in mind, member photographer Glasser Images has created a special offer for the Parade of Homes participants. Consider one of the following professional photography packages. Your images may be used in our Parade of Homes Magazine, the mobile app and in your professional portfolio: • 30 Minute Photo Shoot: $290 • 1 Hour Photo Shoot: $480 • 2 Hour Photo Shoot: $800

All packages include setup, the photo shoots, post-production and editing, an online photo gallery for viewing and downloading the photos, a commercial release for the digital files, and commercial usage.

For more information about these packages and our other packages, visit glasserimages.com or call 250-2190. Also, visit their Houzz Profile for more photos and information.

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BMHBA Building Buzz

April 2015

City/County Beat Trash Issues at Jobsites The City of Bismarck’s Storm Water Program Coordinator is asking contractors to take the time to walk jobsites and adjacent areas to pick up garbage. “From the looks of things right now I think mandatory trash bins might be added to the permit or building requirements,” said Coordinator Terry Halstengard. The city has been fielding increased calls from residents regarding litter and construction debris. Halstengard reports very few dumpsters at sites. “[Waste] usually is just thrown in the back of pickups and blows out,” he remarked.

Building Officials Roundtable is April 16 The Bismarck-Mandan Home Builders Association is hosting Bismarck, Mandan, Lincoln, Burleigh and Morton County Building Officials for a roundtable discussion and lunch on Thursday, April 16 at the Bismarck City Public Works Building located at 601 S 26th St. Members will have the opportunity to have building officials address specific concerns and offer recommendations for improved department services. Please come prepared with questions, or submit your questions and concerns anonymously at www. surveymonkey.com/r/BMHBA_BOR. Each member gets one free admission and additional tickets are $10 each. We encourage you to bring business partners and staff.

RESPA and RESPA Enforcements Seminar You’ve likely heard about the dramatic changes coming to our industry this August as the Consumer Finance Protection Bureau’s Integrated Mortgage Disclosure Roll goes into effect. Join us for a discussion of what this means for the housing industry and how it will affect the loan closing process. The HBA is teaming up with member Quality Title to host a free training session on Wednesday, April 15 at the Ramkota from 9-noon. The RESPA and RESPA Enforcements Seminar will address the essential information all loan officers, real estate brokers, home builders and title professionals will need to know, including critical document submission timelines,


disclosure requirements and a tour of the new Loan Estimate and Closing Disclosure forms. Registration is open online at bmhba.com/events or by calling 222-2400. Complimentary breakfast will be included and three continuing education credits are pending approval with the NDREC, and available for HBA members.

April 2015

BMHBA Building Buzz

Page 7

Four Reasons to Kill Incentives As we start another selling season, we can fully expect to see a repeated theme from builders everywhere: a rush of buyer incentives to goose early year-over-year sales comps. This longstanding tradition in new home sales is not a good fit for today’s social-savvy buyers. They are well-trained to hold out for increasingly appealing terms. As a result, sales conversations start to sound something like this: Salesperson: “Welcome to Stonebrook Manor. I’m Mark. And you are?” Buyer: “What are your incentives?” Salesperson: “We are offering $10,000 in free upgrades and we pay $5,000 of your closing costs.” Buyer: (yawn) Tell me a time when that strategy EVER worked. It can’t, and here is why: what that salesperson just offered was not an incentive. An incentive is a motivating factor designed to cause someone to take action. In this scenario, the incentives did nothing to motivate the buyer. What the salesperson really offered was a price apology. Our salesperson might as well have said: “The price is $349,990, but there is no way our homes are worth that much. You see, my sales manager is just crazy. He totally jacked up the price last year and, well, oops! So now our strategy is to make an over-inflated price look attractive. Have we got you fooled yet?” It is time to stop the insanity! Let me share the four most common incentive violations and what you can do to correct them. Incentives as a Knee-Jerk Strategy “Sales are down. Let’s add incentives.” It really is that simple most of the time, isn’t it? Sales slip for a couple of weeks, someone panics, and here come the incentives. But does a slow sales pace truly reflect the value of the homes for sale? There are many factors that affect sales pace. Incentives represent a dramatically margin-sapping approach to what could be any number of problems. Look at market factors first, and then competitive adjustments, model presentation, your sales approach, traffic patterns and Realtor® engagement. Look at everything else before offering incentives.

home itself. The customer starts to see the home as a cost-only decision and stops looking through the emotional lens that actually inspires a purchase decision. Incentives work as an effective closing tool, but they are a lousy opening tool.

Advertising Incentives A customer shops online for a home and narrows down her list of potential communities to just a few. She gets in her car and drives to the first community, full of hope and positive expectations because the floor plan she saw online matches her specific needs perfectly. She pulls up to the community and is greeted by a huge banner on the trap fence of the models which reads, “Incentives up to $30,000.” Suddenly, several new ideas emerge at the forefront of her mind: “Oh, they are dealing. All right then, time to do battle.” “I see: they are discounting. Is the market that soft? Maybe I should wait.” “$30,000. Okay then, that’s my starting point. ” Notice that absolutely none of these thoughts are about the home itself or her feelings toward it. Builders who advertise this way actually train customers to think only about the deal. The builder now finds themselves trapped in “commodityville” playing a game of “Who Can Give Away the Most.” And that is a game that every builder ultimately loses. Discussing Incentives Too Early Home buyers operate with two key decision points: 1. Do I like the home? 2. What is the cost?

Keep in mind that cost matters very little if the buyer does not like the home. You see, there is no such thing as a great deal on a home you don’t like very much. When salespeople talk about the deal before they talk about the home, they undermine the value perception of the

Offering Incentives without a Reason Any time you offer a discount without a reason, it is simply a price apology. There are no exceptions to this rule. Your customer will always conclude that you priced your home too high and are now correcting that error. Incentives only work when offered with a reasonable and rational explanation. Even telling a customer that you are trying to get the home closed by the end of the quarter is better than offering no explanation at all.

The Better Way Any time a customer gets caught up in a price and terms discussion before seeing the home, devaluation will surely follow. New home sales professionals must defer the price/terms discussion until after the customer has found one particular home and home site that elicits an emotional reaction. And that really is the key. Once the customer develops an emotional bond to a one-of-a-kind opportunity, their urgency rises and the price/ terms consideration become tempered with an “I must have that home” mentality. Salespeople should tailor their presentation so that the customer follows the appropriate shopping sequence. Consider these talking points to defer the price/terms conversation: “The price and terms are meaningless if you don’t absolutely love the home. Let’s find the right home and home site first; then we can go into detail about the price.” “The price and terms vary according to both plan and location. Let’s find the home that works best for you and I will be happy to share that information.” “There is no such thing as a good deal on a home you don’t absolutely love. Let’s find the home you love, and then we can talk about price. I think you will be very happy with the terms.”

Adapted from an article that appeared in the Jan./Feb. 2015 issue of Sales + Marketing Ideas magazine.

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BMHBA Building Buzz

April 2015

Home Show Hits New

Attendance High


Overall attendance was

13% higher

than year prior

& 10% over the attendance record set in 2013.

The 38th Annual Home Show shattered the old event attendance

record set in 2013. More than 7,200 adults shopped the show, which was held March 13-15 at the Bismarck Event Center. “Friday was phenomenal,” said 2015 Home Show Chairman Randy Tank. “More than 4,100 spectators strolled through exhibits on that day alone.” Overall attendance was 13% higher than year prior and 10% over the attendance record set in 2013.

Free admission is likely responsible for the surge in Friday attendance. Sponsored by Capital Credit Union, free Friday proved successful attracting people the event that evening.

“The show was steady on Saturday, but we experienced a real slump on Sunday,” said Tank. “Mother Nature was a tough competitor for traffic. It’s hard to compete with 70 degrees and sunny after a cold and windy winter.” In addition to the first Free Friday, the 38th Annual Home Show presented the first VIP Exhibitor Lounge. “We have fielded positive feedback about this feature. One lesson learned however, was investing in a larger coffee pot,” Tank chuckled. “Now that we know what to expect, exhibitors can expect an even better lounge in 2016,” he added. The 2015 Home Show included 395 booth spaces occupied by 227 vendors. The dates for the 2016 Home Show are Feb. 19-21.

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Page 10

BMHBA Building Buzz

April 2015

National News Lumber Liquidators and Your Questions Builders and remodelers have had many questions about flooring purchased from Lumber Liquidators after a segment on 60 Minutes, the television news magazine, reported that high levels of formaldehyde were found in tested samples of the company’s laminate product. Lumber Liquidators has contested the results of the testing, calling them, “false attacks on all fronts.” On March 12, Lumber Liquidators announced during a business update conference call that was released in a Securities and Exchange Commission filing, that in response to concerns aired during the 60 Minutes broadcast on March 1, that to reassure its customers, the company has implemented an air quality testing program at no cost to the customer. According to Rob Lynch, President & CEO of Lumber Liquidators, currently, less than 1,000 customers who have purchased laminates from China have requested an air quality in-home testing kit. Once a full analysis of a home’s air quality is completed and if the customer is still

not satisfied, the company will consider a reinstallation, the cost of which is expected to range from $3,000 to $4,000. NAHB has produced helpful resources for remodelers and builders that include background on the allegations, associated lawsuits, and tips for successful interactions with your buyers worried about whether the issues may affect them. You must sign in to nahb.org with your password to access this information. For additional information, contact David Jaffe, vice president for legal advocacy, at 800-368-5242 x8317.

Are First-Time Buyers Back? The types of homes now being built suggest that housing growth continues, and there are signs of optimism for one of the market’s key weaknesses in recent years: the lack of first-time buyers. This is the premise put forth by NAHB economist Robert Dietz in a recent U.S. News & World Report article. Noting that builders have constructed new single-family homes for the demand that exists, Dietz said this has been aimed disproportionately at higher-end buyers, who are more likely to have savings for a down payment and the income necessary to support a mortgage. This change in the market mix for new homes is clearly seen in Census data reporting the typical/median new home size. Coming out of the recession, the typical size of a newly built singlefamily home rose about 16% to 2,438

square feet (on a one-year moving average median basis) as of the fourth quarter of 2014. This increase occurred because of a shift away from entry-level housing. However, that rise in size appears to have ended in 2014. In fact, at 2,414 square feet, the typical new home last year was smaller than the 2013 estimate (2,460 square feet). It’s worth repeating – these changes in new home size are reflections of market mix, rather than significant changes in home buyer preferences. Consequently, the 2014 data suggest a

new dynamic may be on the horizon, with increasing numbers of entrylevel buyers entering the market. As these prospective buyers appear in greater numbers, expect the median size of newly built homes to fall as the market mix shifts back to a more normal composition of buyers. Ultimately, for the entry-level housing market to expand, the economy needs to continue producing new jobs. The labor market has been performing relatively well recently, with the last quarter of jobs data averaging 288,000 new positions a month and a headline unemployment rate of 5.5% in February. Income gains for younger households would also be a positive factor for the for-sale housing market in the year ahead. Mortgage rates remain low, but to benefit from low rates, you first have to qualify.

April 2015

BMHBA Building Buzz

Page 11

National News Key Points to Know about Early Retirement Distributions Some people take an early withdrawal from their IRA or retirement plan. Doing so in many cases triggers an added tax on top of the income tax you may have to pay. Here are some key points you should know about taking an early distribution: 1. Early Withdrawals. An early withdrawal normally means taking the money out of your retirement plan before you reach age 59½. 2. Additional Tax. If you took an early withdrawal from a plan last year, you must report it to the IRS. You may have to pay income tax on the amount you took out. If it was an early withdrawal, you may have to pay an added 10% tax. 3. Nontaxable Withdrawals. The added 10% tax does not apply to nontaxable withdrawals. They include withdrawals of your cost to participate in the plan. Your cost includes contributions that you paid tax on before you put them into the plan. A rollover is a type of nontaxable withdrawal. A rollover occurs when you take cash or other assets from one plan

and contribute the amount to another plan. You normally have 60 days to complete a rollover to make it tax-free. 4. Check Exceptions. There are many exceptions to the additional 10% tax. Some of the rules for retirement plans are different from the rules for IRAs. See IRS.gov for details about these rules. 5. File Form 5329. If you made an early withdrawal last year, you may need to file a form with your federal tax return. See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, for details. 6. Use IRS e-file. Early withdrawal rules can be complex. IRS e-file is easiest and most accurate way to file your tax return. The tax software that you use to e-file will pick the right tax forms, do the math and help you get the tax benefits you’re due. Don’t forget that with IRS Free File, you can e-file for free. Free File is only available through the IRS website at IRS.gov/freefile. More information on this topic is available on IRS.gov.

New Study Allows Builders to Compare Employee Compensation against Industry Standards A newly released publication from BuilderBooks, the book publishing arm of the National Association of Home Builders (NAHB) gives homes builders an inside look at building industry employee compensation trends across the country. The 2014 Single-Family Builder Compensation Study provides compensation and benefits data for 39 common positions at single-family home building companies including Controller, Director of IT, Estimator, and Office Manager. Builders can use the results to benchmark what they pay their employees against current industry averages. The study shows average total compensation and the prevalence of benefits offered to each position by geographic region, 2014 dollar volume, number of singlefamily units started in 2013, and the number of employees on payroll. The 2014 Single-Family Builder Compensation Study is available at BuilderBooks.com or by calling 800-223-2665. The eBook is available at ebooks.builderbooks.com.

Page 12

BMHBA Building Buzz

April 2015

National News FEMA Releases Updated Floodplain Publication The Building Science Branch of FEMA recently rereleased the updated publication, Reducing Flood Losses Through the International Codes®: Coordinating Building Codes and Floodplain Management Regulations (4th Edition) A joint effort by the International Code Council and FEMA, this edition is a significant change from earlier versions. It has new content to describe the differences between NFIP regulations and I-Code requirements for buildings, identifies pertinent questions that should be answered in the context of each State’s or local community’s existing statutes and codes, and offers examples of how the I-Codes can be modified to incorporate even higher standards to increase resistance to flood damage. The book is available online at www.fema.gov/media-library/ assets/documents/96634. Regionally, permits were mixed in January. The Northeast and West registered gains of 29.5% and 16.8%, respectively, while the Midwest and South dropped 16% and 8.7%.

IRS Repair Regulations Simplified The Internal Revenue Service made it easier for small business owners to comply with the final tangible property regulations. Requested by many small businesses and tax professionals, the simplified procedure is available beginning with the 2014 return taxpayers are filling out this tax season. The new procedure allows small businesses to change a method of accounting under the final tangible property regulations on a prospective basis for the first taxable year beginning on or after Jan 1, 2014.

Also, the IRS is waiving the requirement to complete and file a Form 3115 for small business taxpayers that choose to use this simplified procedure for 2014. Details are in Revenue Procedure 2015-20 on IRS. gov. The revenue procedure also requests comment on whether the $500 safe-harbor threshold should be raised for businesses that choose to deduct, rather than capitalize, certain capital expenses.

April 2015

BMHBA Building Buzz

Page 13

Member Minute: BMHBA Members in the News Bianco Realty Sales Awards

Bianco Agent Recognized

Bianco Realty has named SHIRLEY THOMAS and JUDY MASLOWSKI Associates of the Month! Shirley and Judy had the most closed sales at Bianco Realty in February 2015. Shirley has been a licensed REALTOR® since 2001 and Judy has been a licensed REALTOR® since 2007.

Congratulations to Bianco Realty Agent, Jim Jeromchek, for receiving the North Dakota Housing Finance Agency’s 2014 “Champion of Affordable Housing” Award! Jeromchek was presented this award at the Annual Statewide Housing Conference. Jim has been a licensed REALTOR® with Bianco Realty since 1993.

Meet Mic h ae l Qu i n n ! Bu il d i n g Bu z z ’ N ew La y o ut Edito r

Michael is a marketing professional, freelance graphic designer and active member of the Bismarck-Mandan Young Professionals Network.

For ad submissions email him at quinn.michael@gmail.com.

Page 14

BMHBA Building Buzz

April 2015


Volume XXII, Issue 4

Monthly News from the North Dakota Association of Builders


Thanks For Your Involvement In March National Association of Home Builders (NAHB) hosted the Bringing Housing Home event where each state association was encouraged to set up meetings with the State Congressman to discuss key housing issues while back in their home states. Our condolences go out to Congressman Cramer LeRoy Kurtyka whose father passed away the weekend NDAB President before our meetings. Informational packets were still delivered to his office with all of the NAHB and NDAB materials and we will work with his office in the future to set up another face-to-face meeting. While gathered in Bismarck members still got the opportunity to have great conversations with ND Secretary of State Al Jaeger who shared updates on the status of some of the bill NDAB has collaborated with his office on at the ND Legislature and other updates from his office. Members also had the opportunity to speak with staff members from both Senator Heitkamp and Senator Hoeven’s offices. We truly appreciate the time they offered to us and we will be working with the schedulers to set up face-to-face meetings with both the Senators when we travel to D.C. in June for NAHB Board Meetings. Thanks to all those who joined us in March for these Bringing Housing Home meetings, as well as for our NDAB Board of Directors meetings. We truly appreciate your time and talents! Speaking of talents, there are more opportunities available to get involved with NDAB and to use your skills or to learn new ones. We have several committees active on behalf of our members, and we encourage you to inquire about openings with your Local offices. One committee, that is very active at the moment, is our Government Affairs Committee. We welcome Eric Brenden of Northwest Contracting in Bismarck as the new Vice Chairman and we thank those committee members who have already renewed their terms for the coming year. We consider the Government Affairs Committee an important tool for our members and hope that through their continued efforts NDAB can continue to be relative and effective in promoting the housing industry in ND. This group recommends association policy on legislative, regulatory and legal issues to the Board of Directors, monitors and tracks government activities and issues that may have an impact on the industry, and conducts research where necessary. It also develops personal relationships with public (municipal, county, regional, state and national) officials, and develops and coordinates local legislative and regulatory goals and strategies on behalf of NDAB members. It’s also responsible for the Call to Action notices you’ve seen this legislative session, and we appreciate all the involvement and responses you’ve given. Please let us know if we can get you involved in other ways as well. Thank you!

April 2015

Will April showers bring May flowers? We sure hope so as the temperatures in March sure teased us going from 75 degrees one day to 40 with snow the very next. It should be no surprise to a life-long North Dakota resident, but still makes you shake your head. Kim Schneider NDAB Executive Officer

March was a time for gathering for NDAB Executive Board Members, NDAB-PAC Trustees and our members. March 10-11 was spent in Bismarck while NDAB President LeRoy Kurtyka (Grand Forks) led his first Executive Board meeting. A lot of discussion really focused around the future of NDAB, our six locals and the strong voice we hold. At over 2,000 members our voice is heard and our opinion matters on the local, state and federal levels to those that Represent North Dakota, our districts and our cities. So how do we keep our membership strong and growing? We welcome stories and ideas from our members who are new and who are seasoned. Share with us what got you involved and kept you involved. Share these stories at your local level, invite a prospective new member to join you at a meeting and introduce them around. See someone new at a general membership event, then invite them to sit with you. Mentoring and networking are keys to continuing a legacy of the boards at a local and state level and the states success is a highlight of the local association’s success. Work is still happening at the Capital at the session is nearing the finish line. A recap of the bills followed and their outcomes will be shared once session wraps up and notes can be compiled. All are encouraged to spend a day in Bismarck if have the opportunity. Legislators have said numerous time throughout this session that they much prefer to hear from our members more than me and other lobbyists. Your stories are what stick with them the most and remind them who they represent. If you haven’t signed up to be an Annual or event specific NDAB Sponsor, there are still some great opportunities available. NDAB logo shirts are given to our top sponsors as a thank you and are also available for sale. These stylish, yet very comfortable dri fit polo shirts look great when attending meetings or out on the golf course! NDAB’s Golf Tournament will be held June 18 in Grand Forks, so mark your calendars now for a great time! Make sure to contact our office to learn more about becoming an annual sponsor, how to purchase your very own NDAB polo or to get registered for the golf tournament. Warm wishes to you and yours, Kim Schneider


Back your PAC … your PAC backs you! NDAB-PAC is the North Dakota Association of Builders’ Political Action Committee. It is a non-partisan political action committee that provides support for candidates who are friends of the building industry. Contact NDAB at (800) 326-4746, (701) 222-2401 or info@ndbuild.com to contribute or learn more! North Dakota Association of Builders 1720 Burnt Boat Drive, Suite 207, Bismarck, ND 58503-0801 701/222-2401 or 800/326-4746 www.ndbuild.com

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BMHBA Building Buzz

April 2015

Around the State Dot Frank, Executive Officer 701-222-2400

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More than 7,200 adults visited the 38th Annual Home Show March 13-15, which amounted to a 13% increase in attendance over year prior. The association hosted its 3rd Annual Bowling with the Builders March 24. Nearly 70 members met at Midway Lanes to socialize, network and have fun. The Spring Parade of Homes is scheduled for the last weekend of April and first weekend in May. To date, there are 44 homes registered. The Spring Building Officials Roundtable is tentatively scheduled for April 16. The BMHBA Government Affairs Committee is engaging commissioners in discussion regarding the impact of codes on affordability.

Forx Builders Association Betty McDonald, Executive Officer 701-746-4536 forxbuilders.com

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Dickinson’s PAC Fundraiser at our March GMM was a success. Arnold Karsky provided current PAC information to our members encouraging a number of newer contributors to join the group. Our spring Home Show is close to ‘sold out’. We have many new exhibitors this year so expect a big interest in attending this show. Early planning is underway for our Picnic and Golf Scramble. This year our members will be responsible for putting on the Picnic. We expect some major surprises. We are also looking forward to and are starting to plan now for the November State Meeting when Arnold Karsky will be installed as State President.

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Bryce Johnson, Executive Vice President hbafm.com 701-232-5846

The Association will host a full-day class on Minnesota’s new code with an expert who wrote the Builders Association of Minnesota’s field guides April 9. Our 10-Hour OSHA Construction Safety Course scheduled April 7-9 is filling up. It’s free for members and $75 for non members. The HBA of F-M’s Spring Parade of Homes will be April 30-May 3 and May


40th Annual MAB Home & Garden Show was very well attended with 111 registered exhibitors. Exhibitors contributed some good ideas for seminars next year. Minot had to cancel both initial and recertification classes for lead base paint due to low registration numbers. April BAH will be hosted by Century 21 Action Realtors at their new location on the 21st. May BAH is being hosted again by MDU and Xcel Energy on the 12th. We will hold a PAC event during this gathering.

Williston Area Builders Association Beth Sundheim, Executive Officer 701-572-5744 willistonbuilders.com

Just had our 40th Home Design & Garden Show. It was a very successful show. Lunch & Learn presented by Automated Financial Services on April 8th Our Annual Sporting Clay Shoot will be held May 21st at the Dakota Club.

Minot Association of Builders Vicky Flagstad, Executive Officer 701-852-0496 minotab.com

Dickinson Area Builders Assoc. Irene Schafer, Executive Officer 701-483-0044 dickinsonareabuilders.com

7-10 featuring nearly 90 homes which is the third-largest Parade in history. The HBA held Candidates Forums last month to preparing for a Fargo special election April 28 to elect a new mayor, due to Dennis Walaker’s passing, and one new city commissioner.

“Boom or Bust” membership meeting (February 19th) brought close to 80 leaders from the Williston & Watford City areas, in construction and Real Estate industries. They shared their outlooks on the construction, housing and development markets for 2015 in the wake of the recent drop of oil prices. Mike Dolbec of Windsong Construction, John Sessions of Bakken Housing Company, Bob Horab of McCody Concrete Products, and Scott Meske, President of the Williston Area Chamber of Commerce participated in an open forum, moderated by Jim Rasche of Spec Ops Construction Services. March 26th General Membership Meeting is sponsored by American State Bank & Trust. Special guest speaker is Heidi Rettig, Tax Senior Associate with Eide Bailey.

North Dakota Association of Builders

NAHB Affiliate Services is coming to Williston April 7th to work out a strategic plan for the WABA. The sessions are a great opportunity for board member education. April 24 General Membership Networking Social for members will be located the first evening of the Home & Garden Show in conjunction with the vender’s social. 2015 Home & Garden Show is scheduled April 24th – 26th. All the booths are sold. Miss North Dakota will be present to autograph pictures. A booth is set aside for the community, which will include Williston State College, Rotary, Sheriff’s Department, Catholic Health and more. See you there.

Thank you to the NEW NDAB 2015 Partners as of March 19, 2015! We truly appreciate your support and we are very excited to serve you throughout the entire year! Gold Partner - Montana Dakota Utilities Silver Partners— Home Builders Association of Fargo-Moorhead and Northern Plumbing Supply Bronze Partners—Bell State Bank & Trust and Williston Area Builders Association Also, NDAB Partner renewals and NDAB Partner and Sponsor materials will be available now through May. We’ve appreciated the great response to the revamped program this past year and are excited to continue it’s improvement in 2015. Contact Heather or Kim for a complete list of details and options, and to secure your spot at all upcoming NDAB events in 2015! heather@ndbuild.com

Thanks to all of our NDAB Board Members who joined us in Bismarck this month for Board of Directors Meeting and NAHB Bringing Housing Home event. Pictured here is part of our group checking out one of Mandan's newest restaurants - Station West. What a great group! Save the Date for NDAB Annual Birdie with the Builders Golf Tournament Thursday, June 18th in Grand Forks, ND


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