Bismarck-Mandan Home Builders Association
BUILDING August 2018
AFTER RUSH TO URBANIZE, SUBURBS AGAIN ON TOP page 5
STATE SUBMITS APPRAISAL WAIVER REQUEST page 7
BOARD BUILDS RELATIONSHIP WITH AREA KIDS page 9
WHO IS YOUR BOOMER BUYER? page 13
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
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Publisher/Editor: Dot Frank Layout Editor: Stephanie Drietz - Drietz Designs Contributor: Tracy DeForest
New Members & Anniversaries June 2018 New Members Mountain Plains, LLC. Jay Crowley | 701-557-3348
Time to Renew! Members with August Anniversaries. Renew by August 30, 2018. 11th Avenue Interiors | Mary Kay Lapp Remodeling-Residential Advantage Appliance, Inc. | Mark Braun Appliances (Retail Dealership) | Appliances Allied Building Products | Shane Gaffaney Building Materials Lumber (Retail Dealership) Drywall Installation | Roofing/Siding/Sheet Metal Work Bianco Realty - Amber Sandness Real Estate Alliance Real Estate - Arnie Kosobud Real Estate Associated Pool Builders | Don Volk Other Knutson Homes, Inc. - Cory Knutson Single Family Spec/Tract Building | Single Family General Contracting Dakota Adventist Academy | Ryan Peterson Other Diversity Homes, Inc. - Diversity Homes SL Jason Frank | Single Family Spec/Tract Building First International Bank & Trust | Brandon Hoffman | Mortgage Banking | Commercial Banking/Thrift Institution | Insurance or Title Company | Other First Western Bank & Trust | Chad Johnson Mortgage Banking Floor to Ceiling | Gene Storbakken Remodeling-Residential | Planner or Designer | Carpentry Work Jim Fetter Masonry, Inc. | Jim Fetter Masonry/Stone Work/Tile Setting/Plaster Alliance Real Estate - Karin Haskell Karin Haskell | Real Estate
Building Buzz | August 2018
Keller Williams Inspire Realty | Carla Dirk Real Estate | Land Development Liechty Homes, Inc | Claudette Schmidt Manufacturing of Modular/Panelized/Log Homes Marco | Kevin Johnson Computer Products and Services | Other Midwest Manufacturing | Eric Proden Milestone Builders | Eric Budd Electrical Work | Single Family Spec/Tract Building Northern Plains Plumbing, Heating & Air Greg Zenker | Plumbing/Heating/Air Conditioning | Remodeling-Residential Northwest Industrial Supply | Curt Binstock Building Materials Lumber (Retail Dealership) Other Precision Tops, LLC | Elizabeth H. Professional Contractors, Inc. | Don McGuire Single Family General Contracting Quality Title, Inc. | Brad Balerud Insurance or Title Company Rivers Edge Plumbing and Heating, Inc. Alissa Kleinsasser | Plumbing/Heating/Air Conditioning | Building Materials Lumber (Retail Dealership) | Utilities Schlosser Excavating, Inc. | Ron Schlosser Other | Excavation Work Stoneshire Builders | Brian Eiseman Single Family General Contracting | Single Family Spec/Tract Building | Single Family Custom Building | Remodeling-Residential Alliance Real Estate - Terri Benson-Holmstrom Real Estate
Your membership is three-in-one: BMHBA, NDAB and NAHB
Professionals building our community through promotion of home ownership, education and legislation since 1958.
2018 Board of Directors PRESIDENT
Lynn Klein Gate City Bank Phone: (701) 355-7633 firstname.lastname@example.org
1ST VICE PRESIDENT
Jeff Sattler Sattler Homes Phone: (701)255-7628 email@example.com
2ND VICE PRESIDENT Rory Anderson Verity Homes of Bismarck Phone:(701) 354-2846 firstname.lastname@example.org Chad Moldenhauer K&L Homes Inc. Phone: (701) 258-4584 email@example.com Bill Schmid Townsquare Media Phone: (701) 250-6602
Brian Eiseman Stoneshire Builders Phone: (701) 471-6935 firstname.lastname@example.org
Shannon Reichenberg Diversity Homes Phone: (701) 751-3999 email@example.com
SECRETARY/TREASURER Greg Zenker Northern Plains Plumbing, Heating & Air Phone: (701) 222-2155 firstname.lastname@example.org Susie Franklin Choice Financial Phone: (701) 751-7282
Joe Hillerson Boulder Homes (701) 400-5554 email@example.com Greg Meidinger Aspire Homes (701) 426-8583 firstname.lastname@example.org Marc Menge BNC National Bank Phone:(701) 250-3000 email@example.com
BIANCO REALTY SALES AWARDS Bianco Realty has announced their top 6 “REALTORS® OF THE MONTH” for July: Darcy Fettig, Shirley Thomas, Amber Sandness, Judy Maslowski, Phyllis Rittenbach and Kim Olson. These six REALTORS® had the highest sales totals at Bianco Realty in July 2018.
Bismarck-Mandan Permit Reports
through June 30, 2018.
Bismarck Single Family
Bismarck Multi-Family Units
Mandan Single Family
Mandan Multi-Family Units
Linear (Bismarck Single Family)
Linear (Bismarck Multi-Family Units)
Linear (Mandan Single Family)
Linear (Mandan Multi-Family Units)
LINCOLN PERMITS 35
COUNTY PERMITS 35
Lincoln Single Family
Lincoln Multi-Family Units
Linear (Burleigh County)
Linear (Morton County)
YEAR-TO-DATE COMPARISON SINGLE FAMILY PERMITS 160
29 27 20
Burleigh Co. 124%
Morton Co. 167%
Bismarck ETA -32%
Bismarck Single Family
0 0 0 0 0
12 0 0 0
Bismarck ETA J17
5 5 0
9 0 0
Lincoln Single Family F17
6 5 4
16 15 1313 11
0 0 0 0
Mandan Single Family A18
7 1 2
Burleigh County Single Family J18
2 0 1 0 0 1 0
Morton County Single Family
August 2018 | Building Buzz
ts back to school season, which means its back to prepping for the Fall Parade of Homes. Our builder members should have received both an electronic and paper invitation to place a home in the Fall Parade, which is Sept. 27-30. The deadline to submit your entries is Friday, Aug. 10. Check out www.BisManParade.com for details.
Another event on the horizon is our Fall Awards Mixer & Board Elections. I have enjoyed my time spent serving as a director and as president and encourage all members to consider serving the HBA in either capacity. Participation on the board provides both personal and professional benefits. I have had the opportunity to learn board best practices, meet peers from across the state and drive change in our association and the community. Please consider putting your name in the hat or nominating another member. Submit nominations now at www.surveymonkey.com/r/2019Board. HBA members will have the opportunity to hear from the candidates and elect their next leaders at the Fall Awards Mixer & Board Elections event on Tuesday, Oct. 23 at the Bismarck Ramada.
Speaking of elections, we are hopeful that you have Nov. 6 marked on your calendar as a Board President day to vote. Advocacy work is so much more effective when we work with those we elect who support housing from the start. Political ads on TV and radio remind us of the cost to run a campaign. Please consider contributing to the candidates who have our best interests in mind. To make it easy, contribute to BUILD-PAC and NDAB-PAC to ensure your contribution is spent in support of the candidates we know are willing to work to advance our industry. Visit www.nahb.org and www.ndbuild.com to learn about PAC and make online contributions.
Its important to look ahead and to look back. Take a minute to reflect and relish on our work as an association. July brought builders and Realtors together for the annual PAC Golf Tournament. Good times and a good deal of money was raised for each association. July also included Lunch with Heroes. Board members helped children paint travertine tile at the Morton Mandan Public Library. Find photos of these events and more online at www.facebook.com/bmhba. Row together,
Lynn Klein, President BMHBA Board of Directors
Building Buzz | August 2018
Example of Knez home design near downtown Cleveland.
After Rush to Urbanize, Suburbs Again on Top P
opulations in cities’ core urban areas grew at a rate that nearly matched growth in America’s suburbs, a sharp shift from a decades-long trend that prompted demographers to declare the 2010s “the decade of the city.” A recent report from the Urban Land Institute showed the growth rate in that period for urban neighborhoods was 3.4%, compared to 3.7% for suburban neighborhoods. From 2000 to 2010, the urban growth rate was just 1% compared to 13% in the suburbs.
Urban areas still primarily attract home buyers without children. But between millennials waiting to have kids and retiring baby boomers who have already raised theirs, many more potential buyers have been available to urban developers. “Many younger buyers live downtown for an extended period of time and they learned to value the convenience and lifestyle differences,” said Bill Sanderson, vice president of land acquisition and development for Knez Homes in Ohio and member of the NAHB Land Development Committee. “Likewise, empty-nesters want to be close to the activities they enjoy, like sporting and cultural events. In Cleveland, that means living close to downtown.”
Despite conventional wisdom, there is still land to be developed in core urban areas. Knez Homes focuses on building single-family homes on vacant infill lots or on lots where businesses have closed. The homes are designed to complement existing housing and the look
of the neighborhood overall.
But multifamily housing still dominates urban building. The ULI report showed that rental apartment development is now concentrated in urban locations. Between 2010 and 2017, the rental apartment inventory in urban neighborhoods increased by 32%, compared to 16% in the suburbs. Development in urban centers has challenges unique to densely-populated areas. “There are always NIMBY concerns in any development, and many groups oppose what they view as gentrification,” said Dean Schwanke, NAHB vice president of multifamily housing. “The main different in urban areas is that there are so many more of them.” Home builders of traditional suburban developments still have little reason to worry. The population growth trends from the early part of the decade may be turning back to the suburbs.
Recent Census Bureau data suggests that population growth in 2016 and 2017 was highest in low-density suburbs and small towns or exurbs. The rate of growth in rural areas also ticked up. Much of the building in these areas has mimicked urban areas, though, Schwanke notes. Mixed-use developments with high-density residential, retail and office units have been popular for years and are gaining momentum in inner and outer suburbs. August 2018 | Building Buzz
CITY & COUNTY HISTORICALLY-HIGH LUMBER PRICES
PUBLIC COMMENT PERIOD AND PUBLIC HEARING
The Bismarck-Mandan Metropolitan Planning Organization (MPO) will hold a public hearing for the Draft 2019-2022 Transportation Improvement Program (TIP) on Monday, Aug. 20, 2018 at 10 a.m. in the Bis-Man Transit Building at 3750 E. Rosser Ave., Bismarck, ND. The public hearing will be held in conjunction with the regular monthly MPO Technical Advisory Committee meeting.
Adding Thousands of Dollars to the Cost of a Home Tariffs on imported Canadian softwood lumber are contributing to increased production costs and harming home buyers. With lumber prices running well above $500 per thousand board feet in July, we need a solution to protect the home building industry and consumers. Tell Senators John Hoeven and Heidi Heitkamp to NEGOTIATE NOW to reach a lumber trade solution.
You can access and share a video on the issue (https://bit.ly/2OjRTvU) and send a message immediately and easily online at www. capitolconnect.com/builderlink/. We need our Senators to sign onto a bipartisian letter urging the Administration to reach a lumber trade solution with Canada.
CITY OFFICIALS DEVELOPING 2019 BUDGET Reprinted from the Mandan Messenger City of Mandan elected officials and staff are working on the 2019 budget. The budget process began this spring and included a working session. Departments submitted personnel and capital requests in April and operating and maintenance requests in June. The Budget and Finance Committee is meeting with department managers and portfolio commissioners to review requests. The committee includes City Commission Finance portfolio holder Mayor Tim Helbling, the city administrator, the city finance director and assistant finance director. The Budget and Finance Committee is planning to present its recommendations to the City Commission at its Aug. 7 meeting. On Sept. 18, the Board of City Commissioners will conduct a public hearing to review and discuss the preliminary 2019 budget and consider its adoption. The board will also consider resolutions establishing rates and charges for services. Budget information is available at the City Finance Office and www. cityofmandan.com.
Building Buzz | August 2018
The purpose of this meeting is to provide an opportunity for public involvement in the review and development of the Draft 2019-2022 TIP. The TIP coordinates and schedules transportation projects (i.e., highway, street, bikeway, pedestrian, transit, safety, enhancements and other transportation related improvements) in the metropolitan area over the next four years, thereby making these projects eligible for federal assistance. The TIP includes metropolitan area transportation projects proposed by the following jurisdictions: Bismarck, Mandan, Lincoln, Morton County, Burleigh County, and NDDOT. The Draft TIP contains the Program of Projects or identified list of transit needs to be funded over the next four years. A Draft 2019-2022 TIP will be available for citizens to review at the Bismarck Community Development Office.
WATER DISTRICT SEEKS COST SAVINGS
Reprinted from the Mandan Messenger
In June, the State Water Commission approved a 35% cost-share with the Lower Heart River Water Resource District (LHRWRD) of pre-construction cost for engineering of the levee project improvements. The application was for up to $800,000 in total pre-construction engineering. The State Water Commission approved $280,000 with LHRWRD being responsible for the balance. The cost of the proposed improvements to ensure the levee doesn’t lose is Federal Emergency Management Agency (FEMA) accreditation is estimated at $36 million. The LHRWRD is working with the State Water Commission for a cost-share program of about $15 million and seeking $100,000 from FEMA.
“The Lower Heart River Water Resource District is also continuing to seek cost savings to the flood system improvement plan while we progress with pre-construction work,” says chair Bill Robinson. “We intend to engage with HDR Engineering to further review the FEMA study for potential cost savings to the 100-year mapping plan.”
The study will be completed in early 2019 and will help confirm the level of improvements required to the current flood protection system while incorporating the most current water and ice data available to Lower Heart. For more information on the LHRWRD, visit www.co.morton.nd.us.
CITY & COUNTY APPLICATIONS SOUGHT FOR VISION FUND COMMITTEE
STATE SUBMITS APPRAISAL WAIVER REQUEST Gov. Doug Burgum and Department of Financial Institutions Commissioner Lisa Kruse have submitted a request for a temporary federal waiver from real estate appraisal requirements to allow banks to do their own property valuations.
The request cites several factors including an increase in the state’s population yet a decline in appraisers throughout the state. According to the state’s application, “North Dakota banks, credit unions, and others interested in real estate lending practices have long encountered unreasonable delays and excessive costs for real estate appraisals required for federally related transactions.”
The Governor is asking to raise the limits that trigger an appraisal from $250,000 to $500,000 for residential mortgages and from $500,000 to $1 million for business and agricultural loans.
FALL PARADE OF HOMES APPROACHES
Builders are reminded of the Fall Parade of Homes dates. The association will encourage prospective buyers to walk through your homes Sept. 2730. While those dates seem like a ways out, time flies when you’re busy building. Registration is now open. Contact the BMHBA at 222-2400 or email firstname.lastname@example.org to request a copy of the rules and contract.
Builders also may access the documents and details online at www.BisManParade.com.
Bismarck Mayor Steve Bakken is seeking candidates interested in serving on the Vision Fund Committee as a Committee Member. The volunteer committee has two open positions, which are 3-year terms. Interested persons should complete an application form describing their qualifications, background and why they would like to serve on the Committee. Completed applications should be sent to: Bismarck City Administration Keith Hunke, City Administrator P.O. Box 5503 Bismarck, ND 58506-5503
The application forms may be found on the City of Bismarck website at https://bit. ly/2Okgy39. The deadline for submitting applications is noon, Aug. 31, 2018. It is anticipated that the new committee members will be announced at the Sept. 11, 2018 meeting of the Board of City Commissioners. The Vision Fund is intended to provide assistance to entities that desire to start, expand or locate in or around the City of Bismarck “community.” The primary purpose of this fund is to encourage and assist in the development of employment within the community by creating new jobs; retaining and enhancing existing jobs; expanding the community’s tax base; increasing capital investment; improving the entrepreneurial climate of the community; and generally expanding the financial base of the community.
RESIDENTS REMINDED TO TRIM TREES
Reprinted from the Mandan Messenger
City of Mandan elected officials and staff are working on the 2019 budget. The budget Mandan city officials remind residents that City Ordinance Sec. 115-4-7 requires any tree which over-hangs a city street within 14-feet or a sidewalk within 10-feet, measured vertically, shall be trimmed by the property owner. During this time of year, it’s common for street trees to hang too low over the street or sidewalk causing problems for pedestrians, trucks, street sweepers, buses and eventually snow plows. It is also the property owner’s responsibility to trim boulevard trees in regard to vehicle or pedestrian clearance and sight problems with obstructing trees. The city arborist will trim boulevard trees which interfere with street lights and traffic signs.
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It’s Not Just Business. It’s Personal.
August 2018 | Building Buzz
BMHBA NEWS MEMBERS TURNOUT FORE EVENT The BMHBA and BMBOR recently hosted their combined golf event at Hawktree Golf Course. The annual affair features 18 holes of scramble-style golf preceded by a boxed lunch and followed by a steak dinner and prizes. Contests included closest to the pin, longest putt and longest drive for both men and women, several hole-in-ones with a grand prize from Puklich Chevrolet. Additionally, the top three teams gross and net were rewarded.
HOME SHOW EARLY BIRD DEADLINES AUG. 30
The event generated funds to support the builders and Realtors PAC and advocacy accounts. Both associations are grateful for the generous sponsors and spirited golfers.
The 2019 BMHBA Home Show is open for registration. An anticipated event by exhibitors and spectators alike the Home Show is your annual opportunity to showcase products and services to thousands over a two-day period. Prior year exhibitors were extended the first invitation to secure space. Registration is open online at www.BisManParade.com under the exhibitors tab. The early bird discount of $25 per booth ends Aug. 30. If you need assistance navigating the registration site or selecting a booth, contact Tracy DeForest at 222-2400 or email tracy@ bmhba.com.
C TS U D O R UR P SUPPORT O Y E OT ND PROM RVICES A UILDING E! B IM SE AND E HOME E SAME T TH AT TH STRY com hba. INDU @bm t. rac y -2400 t t c a g spo C o n t o r 2 2 2 ve r t i s i n ad this m i a to c l
Building Buzz | August 2018
EVENTS BOARD BUILDS 2018 Calendar RELATIONSHIP of Events WITH AREA KIDS August 2 Members of the BMHBA Board of Directors educated students about travertine as they led a tile painting event during Lunch with Heroes. The event represents the third year that the HBA has hosted a craft event with students attending the Morton Mandan Public Library’s summer lunch program. BMHBA Board President Lynn Klein assists youth in a tile painting project.
Annual Sporting Clay Shoot 4:00 PM – 7:00 PM at Capital City Sporting Clays
National Apprenticeship Week
New Member BBQ 5:30-7:30 at the BMHBA Office
ROLL OFF CONTAINER SERVICE 701-471-5650 FOR HOME, COMMERCIAL & CONSTRUCTION
CLAIM YOUR SPACE Advertise in the Building Buzz to get in front of BMHBA members, local residents and more!
Fall Parade of Homes www.bismanparade.com
Fall Awards Mixer & Board Elections 5:30 - 8:00 P.M. Ramada Inn, Bismarck Register at bmhba.com/events, or call 701-222-2400.
Let’s Build Together.
When it comes to building a home, there are a lot of decisions to be made. But when it comes to your closing, we’ve got you covered.
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August 2018 | Building Buzz
NATIONAL NEWS NATIONAL NEWS NATIONAL NEWS
‘SAFETY ZONE’ PLANNED FOR THE BUILDERS’ SHOW NAHB is extending its Safety 365 campaign past the end of this year and into 2019 with the launch of the Safety Zone, a unique exhibit and demonstration space at the International Builders’ Show (IBS) Feb. 19-21 in Las Vegas. The Job-Site Safety Institute, a nonprofit organization dedicated to conducting safety research for the construction industry, and Builders Mutual Insurance Co., which sponsors the Safety 365 campaign, are planning a full slate of educational sessions that spotlight ways to keep workers and subs safer on the jobsite – the focus of this year’s program. The Safety Zone is a continuation of these efforts, show planners said.
The campaign has highlighted NAHB’s vast array of educational resources and safety training materials to help educate employers and workers on the various safety and health hazards the industry faces on the jobsite, and to better understand and comply with Occupational Safety and Health Administration requirements. Because it offers space to exhibitors that wish to showcase new tools and products that promote home building safety, the new Safety Zone helps bring the campaign full circle, said NAHB Construction Safety and Health Committee Chair J. Gary Hill, a home builder and developer from Greensboro, N.C. “Bringing the Safety Zone to the Show is a tremendous opportunity to connect the industry-leading exhibitors and the residential construction end-users that will take safety in this industry to the next level,” he said.
Building Buzz | August 2018
2.4 MILLION MILLENNIAL-LED HOUSEHOLDS ARE MISSING Movin’ ain’t easy, especially for today’s young adults trying to get into a place of their own.
In fact, just 40% of those ages 25 to 34 led their own household in 2016, and that number has been dropping steadily since 2000 (46%). According to NAHB analysis by economist Natalia Siniavskaia, that missing 6% equates to roughly 2.4 million would-be households.
While all age groups recorded continuous declines of headship rates between 2000 and 2016, none saw a faster drop than the 25-to-34-year-olds — once the primary driver behind the big housing boom of the post-World War II era.
States such as North and South Dakota, Iowa and Nebraska register the highest headship rates, ranging between 48%-49%. Affordability is the big issue, with the high costs of living, escalating rental rates and rising home prices — factors that impact people of all ages, but might seem especially daunting to younger generations with typically fewer resources and lower salaries.
As a result, young adult house sharing has risen significantly: The portion of young adults who choose to live with their parents or other relatives rose from 15.3% in 2000 to 26.3% in 2016. Additionally, the percent of those who live with roommates (non-relatives) jumped from 5.1% in 2000 to 7.5% in 2016. A clear trend emerges when comparing household formations — or lack thereof — across the country: States with the more expensive housing markets have the lowest headship rates among 25-to-34-year-olds. California, New Jersey, Florida, New York and Hawaii are consistently among the least affordable places to live and have the lowest headship rates, some of which are well below 37%. On the other end of the affordability scale, states such as North and South Dakota, Iowa and Nebraska register the highest headship rates, ranging between 48%-49%. OCCUPATIONAL MEDICINE WORKING FOR YOU.
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KAVANAUGH AND HOME BUILDING: WHAT THE RECORD SHOWS
TOP-RANKED FLORIDA BUILDER CREDITS LOCAL HBA FOR HIS SUCCESS
As legal pundits and news outlets pour over Judge Brett Kavanaugh’s extensive judicial record to learn more about President Trump’s new Supreme Court nominee, members need only turn to the multiple NAHB court cases over which Kavanaugh has presided at the U.S. Court of Appeals for the D.C. Circuit to get a fuller picture. In his 12 years on the D.C. Circuit, Kavanaugh has been involved in eight cases in which NAHB was a petitioner, appellant or amicus. While not always siding with NAHB’s position, Kavanaugh has consistently viewed agency rulemakings with a healthy dose of skepticism.
For example, NAHB was a petitioner in Coalition for Responsible Regulation et al v. EPA, challenging EPA’s attempt to apply an onerous Clean Air Act permitting program to millions of new sources, including some multifamily buildings.
Aldo Martin and his partners at Bellavista Building Group took their company from $220,000 in revenue in 2015 in $19.8 million in 2017. That rocketed the central Florida development company to the top of the Orlando Business Journal’s Fast 50 list. In an interview with the newspaper, Martin gave much of the credit to his local HBA, the Greater Orlando Builders Association.
Martin got more involved in the HBA on the advice of builder Carmen Dominguez, the one-time HBA president who built The New American Home, NAHB’s show home at the International Builders’ Show, in 2007.
“Whenever he sees me, he says, ‘You were so right,’” Dominguez told the newspaper. “It’s unfortunate that many people don’t take advantage of those resources that are available. When it’s tough, we talk a lot about common-sense things in our business. It’s always good to have someone to bounce ideas off of.”
Kavanaugh also carefully examines Congress’ actions to ensure they pass constitutional muster. NAHB participated as an amicus in PHH v. Consumer Financial Protection Bureau, a case in which Kavanaugh held that a provision of the DoddFrank Act was unconstitutional because it vested too much power in the sole director of the Consumer Financial Protection Bureau (CFPB). NAHB’s main concern in this case was the CFPB’s reinterpretation of RESPA provisions that affected the use of marketing services agreements, commonly used by builders, real estate agents, lenders and others in the settlement process.
Kavanaugh held that the CFPB could not change its position on RESPA without going through the rulemaking process and making sure the public had a chance to make comments. While the full D.C. Circuit ultimately overturned Kavanaugh’s constitutional holding, it upheld his RESPA holding, which benefits NAHB members significantly.
“I’ve been on that board for 10 years and whenever you’re there and you look to your right or left, you’ve got a division president here or a president of a land company there,” Martin said in the article.
A three-judge panel at the D.C. Circuit upheld EPA’s regulation, and the full D.C. Circuit did as well – except for Judge Kavanaugh. Ultimately, NAHB and its industry coalition took this case to the Supreme Court, which overturned EPA’s regulation for exceeding its statutory authority, just as Kavanaugh had forecast when he declined to go along with the D.C. Circuit’s full court ruling.
Judge Kavanaugh’s record of curbing regulatory overreach, as evidenced by these two cases, is one of the key reasons NAHB supports his nomination to the Supreme Court.
HBA Chief Operating Officer Chassity Vega said his fellow members are proud of Martin’s achievements, but not particularly surprised, given Martin’s drive and work ethic — and how well he worked the exclusive networking opportunities that come with association membership.
The opportunities are there for the taking, but not every member understands how networking can boost their businesses, Vega said. “Aldo understands how to build on the relationships he developed in this association,” Vega said. “He leveraged those relationships to the benefit of his career and his business. He did everything he was supposed to.”
August 2018 | Building Buzz
WHO IS YOUR BOOMER BUYER?
NAHB TO ADMINISTRATION: NEGOTIATE NOW
Regency at Hilltown, a Pennsylvania active adult community, helped Toll Brothers snag an NAHB Best of 55+ Housing Award this year. Photo: Bill Taylor
New research on baby boomer households conducted by John Burns Real Estate Consulting reveals several trends about what active adults are looking for in their next home and its surrounding community.
In the Summer Issue of the NAHB 55+ Online Magazine, researchers Steve Burch and Chris Porter discuss their findings. Among them:
• As the trend of urban-like living in the suburbs continues to rise, older households will comprise a notable share of this growth. This is impacting the older shoppers’ community and location preference and is beginning to remake the suburbs.
• Due to longevity and delayed child bearing, the boomers are the first real “sandwich generation” simultaneously caring for their adult children and aging parents. This is having a distinct impact on the need for multi-generational homes.
• Labor force participation rates for the older population are at the highest levels in decades. While this creates a number of societal impacts, it is pushing consideration for age- restricted communities to an older age.
Get details on the survey results and what they mean for your design and marketing plans in the latest issue. And while you’re thinking 55+, don’t forget to enter your project in the NAHB Best of 55+ Housing Awards, and be honored like the winning home illustrating this blog post.
NAHB board members hold Negotiate Now signs at the Midyear Meeting in Portland, Ore.
As lumber prices continue to climb to the detriment of home builders and their customers, members of the NAHB Board of Directors have an important message for Secretary of Commerce Wilbur Ross and U.S. Trade Representative Robert Lighthizer: Negotiate now. “The lumber tariff is a tax on home owners and renters,” said NAHB chairman Randy Noel in the message, which was videotaped on the board floor at the Midyear Meeting July 28. “It’s time to get back to the negotiating table and reach a trade agreement with Canada.” More than 400 board members attending the meeting held up their signs as part of the message to the two administration leaders.
Meanwhile, the estimate of a $1 billion tax on housing because of the administration’s plan to add a 10% tax on Chinese imports is now more than doubled: This week, President Trump announced the U.S. is now considering a 25% tariff on Chinese goods — including $10 billion that are used by the home building community — which would represent a $2.5 billion tax increase on residential construction. Members are encouraged to share the photo on their social media feeds to help spread the word.
New Members Invited to Network Members who have joined the association in the past two years are invited to attend our New Member BBQ on Sept. 6. Board and committee members will be in attendance both serving up a pitchfork fondue and sharing their experiences serving on the board of directors and committees. The event begins at 5 p.m. and is held on the patio in the backyard of the BMHBA at 2600 Gateway Ave. in Bismarck. RSVP online at bmhba.com/events or call 222-2400.
Building Buzz | August 2018
Suppose you are planning a new multifamily development and want to offer buyers competitive design options beyond countertop choices or various materials for millwork.
How about home technology options? That’s how one Australian developer cornered the market with a new “smart” community.
Look & Listen, an Australian firm that specializes in residential smart-home systems, worked with the Brisbane condo developer who was targeting a demographic right around retirement age with a preference for a modern, minimalist aesthetic.
The developer wanted features that would set these units apart from the competition. The solution? Integrate smart home systems not found in similar developments nearby.
Using a Control4 platform — also available in the United States — Look & Listen delivered an efficient, easy-to-use and secure system. “Additionally, we set out to integrate and control all features available within the condos to work on one system,” said Look & Listen managing director Craig Sampson.
Lighting, shading, networking (both Wi-Fi and hardwiring) and other systems are all integrated in each unit, and all the controls are synced to one another. For example, if a shade is lowered halfway, all the control devices will “know” the status of that particular window blind. Other features include security “scenes” designed to deter intruders with flashing lights, as well as an automatic reduction of power consumption when a condo is vacant. Each condo comes with its own customizable equipment rack. “The wall-mounted racks contain all the necessary field cabling infrastructure and terminations from any kind of cable. The racks have enough space to house all source equipment such as amplifiers, cable boxes, Apple TVs and so on,” Samson said. Prewiring throughout each unit allows individual residents to add other components wherever they wish, or integrate other devices like smart kitchen appliances into the home.
This republished NAHBNow guest post is from Ed Wenck, content marketing manager for CEDIA, the industry association where you can find local professionals who design and integrate technology for the connected home.
All subsystems were combined and programmed to work using lighting keypads and wall mount and tabletop touch panels. We also included the ability to control everything from the touch panels in bed, or even communicating internally between floors,” he said.
INTEGRATING TECHNOLOGY INTO YOUR CONDO DEVELOPMENT
SUPPLY CONSTRAINTS HINDER SALES AND AFFORDABILITY
NAHB Chief Economist Robert Dietz provided this housing industry overview in the bi-weekly newsletter Eye on the Economy. The dominant characteristic of the nation’s housing markets over the last few years has been a lack of resale supply and lagging single-family construction. This dearth of inventory has resulted in price growth, making prospective home buyers more cautious about a potential purchase. Recent sales data reflect these trends:
• Existing home sales in June fell 0.6% to a rate that was 2.2% lower than a year ago. However, inventory increased 4.3% in June,
• Confidence remained healthy among single-family builders in July, a reflection of the second-quarter gains in homeownership (which increased to 64.3%) and a GDP growth rate of 4.1% — the strongest since the third quarter of 2014. However, rising home prices are eroding housing affordability, which has been exacerbated by rising construction costs. For example, lumber prices are 38% higher than they were at the start of 2017. The good news is that they have fallen 16% since midMay. Managing these construction costs will be key for enabling additional housing supply. For more, go to http://eyeonhousing.org.
• New single-family home sales fell 5.3% in June to a seasonally adjusted annual rate of 631,000 — the lowest since October 2017. Nonetheless, the sales total for the first half of 2018 was 6.9% higher than the first half of 2017. Inventory of new homes stands at a healthy 5.7-months’ supply.
0.5% higher than last year and the first year-over-year gain in resale inventory in three years. Rising inventory of existing homes will help the supply-constrained market, but it also represents a competitive challenge to new construction.
APPLY TO SERVE ON AN NAHB COMMITTEE OR COUNCIL BOARD The online application for NAHB committee and council board of trustees appointments is now live at https://bit.ly/2Nr5TTY.
Your NAHB Senior Officers strongly encourage all members to think about throwing their hats into the ring for 2019. The deadline to apply is Sept. 23. You must be logged in to see this page or submit an application. To apply:
• Review the criteria for serving on a committee or council. Most importantly, ensure your membership is “in good standing.” If your membership expires before the deadline, contact your local association and make sure it is renewed before Aug. 31. • Select up to six committees or councils and rank them according to your preference.
• Tell us why you are interested in serving. If someone has recommended you to serve on that committee or council, add their names.
• Let us know if you’ve never served on a committee or council. • Review the application and submit. You will receive a confirmation that your application was received.
If you want to make changes to your application, simply go back to the application link and make your edits.
Current committee and council members interested in serving another year must resubmit their applications: There are no automatic multiyear appointments. Questions? Contact Cyndi McKinley at 800-368-5242 x8346.
August 2018 | Building Buzz
NDAB NEWS Monthly News from the North Dakota Association of Builders
NDAB Chief Executive Officer
Today’s Families Choosing
Mid-Summer Home Maintenance Checklist
After the dust settles on your Independence Day celebration, you may notice that your home has begun to show the signs of an active summer – both inside and out. Take the time now to do a few maintenance tasks to keep your home humming through the rest of the summer.
The growth of modern multigenerational households – which once began as a fall-out from millennials moving back home during Dan Lindquist the Great Recession – shows no signs of Kim Schneider President slowing down. Households are now choosing CEO this option to address the needs of other Keep hot air out. Hopefully you’ve already generations as well, including health issues of aging parents and child had your air conditioner serviced this year to ensure it can hold up durcare concerns of working parents. ing a heat wave. Now it’s time to re-check your windows and doors for The latest numbers from 2014 Pew Institute show that nearly 20% of drafts and air leaks that may have developed with kids more frequently coming in and out of the house. Caulk any seams and re-glaze windows the U.S. population lives in households consisting of two or more if needed, and replace any worn weather-stripping around doors to help adult generations. keep cool air from escaping. Also, replace or repair any screens that Home builders and remodelers are building and renovating homes to have tears. meet the needs of multigenerational households. These designs allow many generations of the same family to live together under one roof Swap your HVAC filter. If your air conditioner has been working overtime this summer, check to see if the filter needs to be replaced. yet have private areas as well as combined living space. While some manufacturers recommend replacing your filter about once a month, the actual time will depend on your household: how often air Features of multigenerational home plans can include in-law suites conditioner runs, the number of furry pets in your home, the age of within the main home and separate living area and include your unit, etc. kitchenettes and private entrances from the outdoors. Other homes may share the living space but have an additional master bedroom Secure loose fittings. It’s a good idea to check the railings and posts on and bath to accommodate privacy for everyone. your deck to ensure that they are not becoming loose. If you have playset in your backyard, check to see if any connections need to be tightBuilders also frequently include "universal design" features and ened. This is especially important during the summer months when products, which focus on maximum usability by people of all ages playsets get the most use. and abilities. Examples include wider hallways, walk-in showers, smooth flooring transitions, and cabinets with pull-out drawers. Drain the rain. Summer rains bring extra water that can take a toll on gutters and downspouts. Visually inspect your downspouts to be sure Building professionals who have earned the National Association of they are draining away from the foundation. Clear your gutters from the Home Builders’ Certified Aging-in-Place Specialist (CAPS) debris that gathers during summer storms. Also be sure there is no designation have received training on how to build or renovate a standing water around your yard, which attracts mosquitoes and other home so that the occupants can live in the home safely, independently pests. Water pools around your house also attract termites, so be sure to and comfortably, regardless of their age or mobility level. They have drain all the excess water. been taught the strategies and techniques for designing and building For more home maintenance tips, contact your local HBA: aesthetically pleasing, barrier-free living environments. While most CAPS professionals are remodelers, an increasing number are general Bismarck-Mandan HBA: 701-222-2400 contractors, designers, architects, and health care professionals. Dickinson Area Builders Association: 701-483-0660 Forx Builders Association: 701-746-4536 To learn more about multigenerational home plans or to find a HBA of Fargo-Moorhead: 701-232-5846 Certified Aging-in-Place Specialist in North Dakota visit Minot Association of Builders: 701-852-0496 ndbuild.com/designation/caps/ or go to nahb.org/capsdirectory Williston Area Builders Association: 701-572-5744 All the best, Take care, Dan Lindquist 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 email@example.com to contribute or learn more! North Dakota Association of Builders ❖
Building Buzz | August 2018
1701 Burnt Boat Drive, Suite 201, Bismarck, ND 58503-0801 ❖
701/222-2401 or 800/326-4746 ❖
AROUND THE STATE Around the State
• Look for several Lunch Hour Learning class dates becoming available soon! Save the Date! The Builders Banquet is Bryce Johnson, Chief Executive Officer, Bismarck/Mandan HBA for donating a Decorating Services, Top Recruiter; DecemberKen 4th at the Grand Hotel in Minot. 701-232-5846 | hbafm.com computer for our new Executive! Krajsa, Bell State Bank & Trust, Top Dot Frank, Executive Officer • Planning for the 2019 Home and Garden Show will begin in Spike;and George Fraza, Blue Cross Blue • The four area mayors from Dilworth, Fargo, Moorhead Home flowing! show booths are being sold now! 701-222-2400 bmhba.com September. Ideas are already Shield of ND, Ken Krajsa West Fargo declared June National Homeownership Month in Top New Spike; January 8th is the deadline for our Cornerstone Award. HBC granted $12,500 preferred vendors. Home show is April 15 city at abusy press conference coordinated by the each Therespective BMHBA has been following in scholarships to local high school – 17, 2016 . Williston Area Builders Association ordinance HBA of F-M.updates in Bismarck and students and college students in or contact Jackie@willistonbuilders.com for Mandan, Burleigh and Morton Counties. Amber Elizondo, Executive Officer planning on enrolling in the construction • The July Golf Outing wasdated sold out! The day had beautiful questions. All HBA’s are reviewing and updating programs. 701-572-5744 | willistonbuilders.com weather which made for an awesome round of golf! Nearly
Home Builders Assoc. of Fargo-Moorhead
codes. Eyes are currently on permit cost
Our December General Membership
stringballs The HBA of F-M held a PAC Social with changes and development standards. $1,500 was raised for NDAB-PAC through selling • Picnic and Hammer-Schlagen meetingTournament will be held on- August the 17th21, 2018 special guest Jerry Howard to talk about and mulligans. A housing analysis conducted by Bismarck issues NAHB is working on in D.C. and and Mandan outlines a need for an
The event was a to Announce the 2018 Professional Builders is Proud • The HBA of7,786 F-M isowner-occupied looking forward to its Associatehow they tie in locally.NDAB Thank you so much to our Annual additional homes success with 75 members in attendance. Appreciation Family Picnic on Aug. 9. This event will feature Banquet Sponsors! by 2030. The&HBA is working a task • Don Dabbert Jr.-Dabbert Custom Homes Your support under 20 members attended a Lunch a force dunkto tank to raise funds for Home of Fargoexplore implementation of theBuildersCareJust helped us to put on a great event! We Session with local building officials to talk • Todd Williams-Todd Williams study’s recommendations. Moorhead Foundation. had a great crowd and a fun evening about the latest issues in residential • The Members elected a new Builder board celebrating the year end and • Construction, LLC construction. HBA will be hosting a legislative social to meet new member at the Fall GMM on Nov. 24 to fill recognizing all our amazing Award candidates and incumbents running for election. addition, In The New Year Celebration & CityWorkman-Jordahl Night is • Mike Custom Past President Vance Vetter’s seat. The winners. WeHomes are already looking Candidate Forums will take place to educate members on on Jan. 28 at the Radisson in Fargo. 2016 board of directors will be sworn in at forward to doingInc. it all again next year • Charles Bon-C’est Bon Construction, Mayors from Fargo, Moorhead, West those running for Moorhead’s the Annual Banquet on Jan. 14.city council (including mayor) in Bismarck! Fargo, Dilworth & Oxbow will be in • Vern Hanson-Hanson Bros., Inc. The BMHBA welcomes all members to attendance and participate on a mayoral panel. We will also have• special guest Al Berg Construction, Inc. Eric Berg-Eric Jaeger, Secretary of State. If you would • the Michael like to attend, please visit eventsBullinger-Western Productions calendar at www.hbafm.com.
attend aArea Lead Builders Renovator and Lead Dickinson Assoc
Renovator and Refresher Lindsay Lange, Initial Executive Officer course on Nov. 30 and Dec. 1, respectively. 701-483-0044 | dickinsonareabuilders.com Visit bmhba.com/events to register.
• Jason Eid-Eid-Co Homes • Our Golf Scramble is scheduled for August 19th. Dickinson Area Builders Assoc. Forx Builders Association • Tom Spaeth-AccentPlatinum Kitchen &Sponsors—Kuntz Bath Builders, Irene Schafer,for Executive • Planning the 3rdOfficer annual Parade of HomesBetty has begun, andExecutive Officer McDonald, Inc. and Winn Construction, Inc. we are anxiousdickinsonareabuilders.com to see what the builders have701-746-4536 in store for 701-483-0044 • Mark Spriggs-M & J Construction, Inc. forxbuilders.com Dickinson this year. • Tyrone Leslie-Heritage Homes Our regular GMM was held at the Eagles Silver Sponsor—ProBuild There was good attendance at Slate Club on November 11 with a moment of Interior Design’s November Builders after& S Custom Homes, Inc. • Todd Halle-T Forx Builders Association silence honoring our veterans. NDAB-PAC Reception Sponsor—Bosch Hours. Thank you Alissa. Stacy Executive Office • Robert Leslie-Designer Homes Anderson, Our Home Show committee is busy Lumber Co. The December Builders after Hours will be 701-746-4536 | forxbuilders.com planning our Home Show in April, hosted by the Membership Committee and • Charles Zach-Zach Construction, Inc. updating and adding new features. Banner Sponsor—Roers West, LLC the on Board of Directors at Keith’s Security • Annual Golf Outing will be held at Valley Golf Course Gunkelman-Dakota Construction September Our main focus World. Jim Bisson owner• ofJohn Keith’s Lock & 13th.right now is on Key will be retiring the end of December the State Meeting here in Dickinson. We • Greg Krueger-Krueger Construction and we will be helping him celebrate this • Planning is underway the 2018-2019 Project House. are looking forward to for making this a Also, Thank you to the NDAB 2015 milestone. special night for Arnold he is • Robert Kochmann-Kochmann Our project house in an Karsky annualas collaboration between Forx Partners! We truly appreciate your installed its as members our State President. Our Home Design and Garden Show will Builders, and the Northland Community & support and we have enjoyed serving • Brothers Homes, Inc. Technical FollowingCollege. that, weThis also is busy ourof this collaboration. be held April 1, 2 & 3 at the Alerus Center. theplanning 35th year you throughout the entire year! annual Christmas Party. Newly elected • Gary Orth-Cornerstone Specialties Minot Association of Builders • Planning will soon for the Home & Garden Show Vice President, Valbegin Voelkering is 2019 busy with Executive Officer her committee putting final touches to a The NDAB is proud to announce a NEW program special evening the Elks Club. 701-852-0496 minotab.com Minotvery Association ofatBuilders
We would like to takeOfficer this opportunity to Elysha Head, Executive extend an invitation to Kim and Heather 701-852-0496 | minotab.com and other associations to attend our
this year for our Associates. The North Dakota
We are having a “Holiday Open House” for Associate Program will officially start our members here at Professional the office December 15th from noon-7pm with food and Christmas party. Gold Partner - Montana Dakota Utilities • Reorganization of the Guns ‘n’ Roses Shootout is complete and taking applications in July. beverage. the Merry Happy New to MABChristmas is happyand to announce theYear shootout will be held on Silver Partners - Bismarck-Mandan everyone! Williston Area Builders Association August 28th at 1 PM at the Minot Gun Club. Spend an afternoon
For more informationHome aboutBuilders NDAB’sAssociation, Builders Program Dickinson on the range with the MAB! Teams of four areJanna able to register Lutz, Executive Officer contact Sara Frank: firstname.lastname@example.org or 701-222-2401. Area Builders Association, Home Builders for the trap shoot in a similar fashion to the golf tournament. 701-572-5744 willistonbuilders.com Bryce Johnson, Executive Vice President Association of Fargo-Moorhead, & Prizes will be given out for the best team score, best individual 6 hbafm.com 701-232-584 Northern Plumbing Supply WABA welcomes new incoming board score and much more! members: Lance Bevier of Tractor and • The Thank you to everyone who is attended our 15th. Planning 2018 Parade of Homes September has Co., Joan Mainwaring of Equipment
Awards Gala & Annual Meeting. The HBA American begun for the event and the MAB is looking forward to big State Bank and Trust Co., and of F-M celebrated award winners and Bob Radermacher of Bakken Contracting. attendance scholarshipnumbers. recipients with over 200 of its members. The awards went to Clay Dietrich, Dietrich Homes, Inc., Builder of the Year; Paul Krabbenhoft, Coldwell Banker First Realty, Associate of the Year; Heritage Homes, BEAM; Dan Beecher, Foam Doctor’s LLC, Extra Mile; John Koerselman, Red River Drywall &
Mark Schneider, LJA, was sworn in as our incoming WABA President at our Annual Meeting in November. Top Spikes were also recognized: Bill Murphy and Dave Nordenstrom became Life Spikes in 2015! Special thanks to Dot Frank and the
Bronze Partners - Bell State Bank & Trust, Forx Builders Association, Minot Association of Builders, ND Guaranty & Title Co., ND Housing Finance Agency, ProBuild, RDO Equipment Co., & Williston Area Builders Association August 2018 | Building Buzz 15
PRSRT STD U.S. Postage
PAID 2600 Gateway Ave., Ste. 1 Bismarck, ND 58503
UPCOMING BMHBA EVENTS New Member BBQ - 9/6/2018 - 5:30 - 7:30 at BMHBA Office Fall Parade of Homes - 9/27 - 9/30
Permit #72 Bismarck, ND 58501
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