Bismarck-Mandan Home Builders Association
BUILDING uzz B August 2015
DIVERSITY HOMES Builder constructs waterfront home that encourages staycations.
CAREER OPPORTUNITIES IN BUILDING TRADES PAGE 6
Message from Tom Woods, page 5 Annual PAC Golf Tournament, page 8 Overtime Comment Period, page 10 Photo courtesy Jesse Knutson Photography.
BUILDING Buzz Building Buzz is a publication of the Bismarck-Mandan Home Builders Association
Your membership is three-in-one: BMHBA, NDAB and NAHB
2600 Gateway Ave., Suite 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730
Professionals building our community through promotion of home ownership, education and legislation since 1958.
Like Us! www.facebook.com/bmhba Follow Us! www.twitter.com/bmhba
Publisher/Editor: Dot Frank Layout Editor: Michael L. Quinn
Cover Photo Diversity Homes
www.diversityhomesnd.com
2015 Board of Directors PRESIDENT Drew Knutson Knutson Homes, Inc. Phone: (701) 258-3464
1ST VICE PRESIDENT Greg Zenker Ferguson Enterprises Phone: (701) 663-2446 2ND VICE PRESIDENT Shannon Reichenberg Diversity Homes Phone: (701) 220-8177
Susie Franklin Capital Credit Union Phone: (701) 255-0042 Nathan Jones Tollberg Homes Phone: (763) 205-2037
Details:
Lakewood 2nd Addition, Mandan Built in 2013 Ranch Style 5 bedrooms, 3 ½ baths
Open spaces and large windows overlooking the water give the feel of having a vacation oasis at home. This home features 5 bedrooms, 3 ½ baths, a home office and a large open living, kitchen, and dining area that lead to a huge covered patio. All of these spaces were designed with family and entertaining in mind. If the weather isn’t cooperating there is a large family room and bar area overlooking the custom theatre room in the basement. This is a favorite gathering place for adults and kids alike. Don’t forget the oversize garage with over 1,500SF including a separate storage area for the kids’ toys and one for all the tools and equipment to take care of the beautifully landscaped yard.
Photos courtesy Jesse Knutson Photography.
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Building Buzz | August 2015
Parker Pladson Venture Building Co. Phone: (701) 290-6734
PAST PRESIDENT Vance Vetter Vance Vetter Homes Phone: (701) 751-8218
SECRETARY/TREASURER Lynn Klein Gate City Bank Phone: (701) 355-7633 Paula Haider Haider Glass Specialties Phone: (701) 250-6787 Chad Moldenhauer K & L Homes, Inc. Phone: (701) 258-4584 Jeff Sattler Sattler Homes Phone: (701) 255-7628 Bill Schmid Townsquare Media Phone: (701) 250-6602
New Members & Anniversaries June 2015 New Members Basin Electric Power Cooperative | Nick Roemmich Designer Kitchen & Bath, LLC | Matthew Chap Remodeling-Residential | Planner or Designer Sattler Homes - Jeff Sattler
Wells Fargo Home Mortgage - Michael Gregory The Home Depot | Jared Ross | Appliances (Retail Dealership) | Building Materials Lumber
Time to Renew!
Members with July Anniversaries Renew by August 31, 2015
Glass Doctor of Bismarck | Ben Goergen Building Materials Lumber (Retail Dealership)
Diversity Homes SL | Shannon Reichenberg Single Family Spec/Tract Building
Alliance Real Estate - Pat Vannett Land Development
Keller Williams Roers Realty | Jodi Herauf Land Development | Real Estate
Marco Marty Pressler Computer Products and Services
Dakota Four Seasons | Vernon Elam Building Materials Lumber (Retail Dealership)
Pacific Homes LLC | Victor Odeychuck | Single Family Spec/Tract Building | Single Family General Contracting
Jim Fetter Masonry, Inc. | Jim Fetter Single Family General Contracting
Alliance Real Estate | Arnie Kosobud Land Development
Bismarck Motor Company | Bob Kupper
Northwest Industrial Supply | Curt Binstock Building Materials Lumber (Retail Dealership)
Alliance Real Estate | Jeff White Land Development
Liechty Homes, Inc. | Claudette Schmidt Manufacturing of Modular/Panelized/Log Homes
Associated Pool Builders | Don Volk
Northern Sky Builders | David White Single Family Spec/Tract Building
Alliance Real Estate | Janel Buchholtz Land Development
Advantage Appliance, Inc. | Mark Braun | Appliances Allied Building Products | Shane Gaffaney Building Materials Lumber (Retail Dealership)
Northern Plains Plumbing, Heating & Air | Kevin Weigel | Remodeling-Residential | Plumbing/Heating/ Air Conditioning
Flash Printing | Roger Kubik Marketing/Advertising or Public Relations
Professional Contractors | Don McGuire Single Family General Contracting Quality Title, Inc. | Brad Balerud Insurance or Title Company
M3 Design Homes | Andra Miller Single Family Spec/Tract Building
Schlosser Excavating, Inc. | Ron Schlosser Excavation Work Bianco Realty - Sheila Krebs Land Development
Century 21 Morrison Realty - Mary Ohlhauser Land Development
Stoneshire Builders | Brian Eiseman Single Family Spec/Tract Building
MB Homes | Mario Spasovski Single Family Spec/Tract Building
Alliance Real Estate - Terri Benson-Holmstrom Land Development
Milestone Builders | Eric Budd Single Family Spec/Tract Building | Electrical Work
Bismarck-Mandan Permit Reports Through June 2015 Permit Type
YTD 2015
BISMARCK - www.bismarck.org
YTD 2014
Single Family – Multi-Family – Commercial –
31 2 10
Value - $5,458,285 Value - $10,162,000 Value - $10,730,950
Units – 31 Units - 107 Units – N/A
Single Family – Multi-Family – Commercial –
103 3 6
Value - $16,777,301 Value – $3,692,591 Value - $9,162,700
Units - 103 Units – N/A Units – N/A
Single Family – Multi-Family – Commercial –
1 0 0
Value - $154,064 Value - $0 Value - $0
Units – 1 Units - 0 Units – N/A
Single Family – Multi-Family – Commercial –
6 0 0
Value – $749,330 Value - $0 Value - $0
Units - 6 Units - 0 Units - 0
Single Family – Multi-Family – Commercial –
21 0 0
Value - $5,257,234 Value - $0 Value - $0
Units - 21 Units – 0 Units – N/A
Single Family – Multi-Family – Commercial –
16 0 25
Value - $4,397,600 Value - $0 Value - $2,621,996
Units - 16 Units - 0 Units – N/A
Single Family – Multi-Family – Commercial –
4 0 0
Value - $1,477,088 Value - $0 Value - $0
Units - 4 Units - 0 Units – N/A
Single Family – Multi-Family – Commercial –
6 0 1
Value - $2,126,383 Value - $0 Value - $448,500
Units - 6 Units - 0 Units – N/A
Single Family – Multi-Family – Commercial –
5 0 2
Value - $1,221,800 Value - $0 Value - $200,000
Units - 5 Units - 0 Units – N/A
Single Family – Multi-Family – Commercial –
1 0 1
Value - $300,000 Value - $0 Value - $8,000
Units - 1 Units - 0 Units – N/A
MANDAN - www.cityofmandan.com
LINCOLN - www.cityoflincolnnd.com
BURLEIGH COUNTY - www.co.burleigh.nd.us MORTON COUNTY - www.co.morton.nd.us
August 2015 | Building Buzz
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President’s Letter
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s summer winds down, I hope you’re winding up for the Fall Parade of Homes, which is fast approaching. Early polling indicates a strong showing. Responses to our pre-parade survey reveal the following: At least 26 homes in the Fall Parade
• Homes located in Bismarck and Mandan
• 32% of homes priced $200,000-$325,000 • 48% of homes priced $461,000+
Thank you to those who completed the survey. You should have received an early application via email. All other builders should expect a mailed application. If you don’t see one in your mailbox soon, please contact the office at 222-2400 to ensure your participation. The Parade of Homes is unrivaled in its ability to showcase our craftsmanship to the community and prospective buyers. It also is an opportunity to work with your subcontractors to promote their products and services. Last fall 2,377 adults made their way through our Parade Homes.
Drew Knutson Board President
As we all hustle to complete our parade homes by Sept. 24, I encourage you to take a break to attend the association’s Annual Sporting Clay Shoot on Aug. 27. We’re going “Redneck” at Capital City Sporting Clays. Join me and others as we dust off our Joe Dirt wigs and pull on cutoff jean shorts for this fun event. Registration is open online and a limited number of sponsorships are available.
We’ve had a lot of fun this summer, but it hasn’t come without hard work. The association continues to monitor commission agendas and educate members on codes and concerns related to construction. Our first Appraisal Roundtable was well attended and educated attendees on the appraisal process and ways to ensure sound comps. The PAC Golf Tournament attracted 144 golfers who not only enjoyed a day on the course, but contributed through their registration to our advocacy fund, which helps us monitor and fight onerous rules and regulations. Thank you.
Keep your eyes out for new initiatives brought forward by Executive Officer Dot Frank, who recently attended NAHB’s Association Leadership Institute. Dot brought back best practices from sister associations across the country Until September, Drew Knutson President
The Federal Reserve’s Federal Open Market Committee judges that economic conditions continue to improve this year, suggesting interest rate hikes are ahead. For more analysis, eyeonhousing.org provides members with data on economic and housing related topics.
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Building Buzz | August 2015
A Message from Tom Woods 2015 NAHB Chairman
Fulfilling the pledge that I made at the Spring Board of Directors Meeting, NAHB has filed suit seeking to overturn a federal rule that redefines “the waters of the U.S.” and drastically expands the area that can be regulated by the federal government under the Clean Water Act. The rule will go into effect Aug. 28.
Brought against the Environmental Protection Agency and the Army Corps of Engineers in U.S. District Court, Southern District of Texas, the lawsuit charges that the two agencies are “set and determined to exert jurisdiction over virtually every water feature imaginable.” NAHB has been involved in trying to shape this rule since it was first proposed in April 2014, and urged significant changes to make it more workable. Despite some minor improvements, the final rule is so extreme that the federal government will actually regulate certain roadside ditches, isolated ponds, and channels that may flow only after a heavy rainfall. Such intrusive federal encroachment will inevitably lead to bureaucratic delays, increased project costs and mitigation fees, and decreased housing affordability. The lawsuit notes that the rule goes well beyond Congress’ original intent when it enacted the Clean Water Act and ignores the jurisdictional limits already set forth by the U.S. Supreme Court.
Tom Woods
NAHB Chairman
NAHB has also been working to engage legislators on this rule. With bipartisan support, the House recently approved H.R. 1732, the Regulatory Integrity Protection Act, which would require EPA and the Corps to withdraw their rule and develop a new plan in consultation with state and local governments and other affected stakeholders, including small businesses. NAHB is urging the Senate to pass companion legislation, S. 1140, the Federal Water Quality Protection Act.
NAHB was joined in the suit by other business and agricultural organizations, including: the American Farm Bureau Federation; the National Association of Manufacturers; the American Road and Transportation Builders Association; the American Petroleum Institute; the Leading Builders of America; the National Alliance of Forest Owners; the National Cattlemen’s Beef Association; the National Corn Growers Association; the National Mining Association; the National Pork Producers; and the Public Lands Council.
August 2015 | Building Buzz
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It’s Time to Take Another Look at Career Opportunities in the Building Trades
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t a time when countless college graduates are finding they are underemployed and saddled with crushing student debt, it is time for educators and policymakers to reexamine the widely held belief that a college degree represents the only road to success.
The building trades offer a great career path. Regrettably, fewer students are seeking careers in the construction industry. This is particularly unfortunate, given the shortage of skilled workers in the residential construction industry and the fact that carpenters, electricians, framers, roofers and others in the field earn good salaries and express high job satisfaction. Indeed, according to the Bureau of Labor Statistics Occupational Employment Statistics Survey data and analysis by the National Association of Home Builders (NAHB), the 2014 median annual wage of most positions in the residential building sector was $39,500 – 10% above the U.S. median annual wage of $35,540.
Job Service North Dakota (JSND) reports indicate that the highest average wages for Specialty Trade Contractors in Burleigh County
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Building Buzz | August 2015
were $67,704 annually based on 4th quarter numbers from 2014.
With the nationwide housing recovery now picking up steam, it is imperative that America trains more workers and leaders in the construction industry. The number of open construction sector jobs in March was 147,000, the thirdhighest monthly total since the Great Recession ended, according to the latest BLS data. In North Dakota, the 10year growth for Specialty Trade Contractors is predicated to be 27.2%, per JSND.
The problem is particularly acute here in Bismarck-Mandan. Labor shortages impacting local builders, slowing the construction process and impacting price. According to a recent survey of BismarckMandan Home Builders Association members, XXX respondents reported a shortage of labor. North Dakota Job Service statistics confirm the shortage, with 181 construction positions open on July 9, 2015 in the Bismarck-Mandan area.
To meet the housing needs of a growing population, attitudes must change. Parents, teachers, counselors and students need to understand and believe that a vocational education is just as worthwhile as a conventional
four-year college and that both routes offer satisfying career paths and financial gains. Academic institutions can aid in this effort by funding and promoting more twoand four-year programs that cater to students interested in construction management and the building trades. For more information about home building careers Bismarck-Mandan contact the BMHBA at 222-2400 or visit bmhba.com.
CITY & COUNTY NEWS MANDAN ARCHITECTURAL REVIEW COMMISSION SEEKS APPOINTEE The Mandan City Commission will be considering an appointment for a position to the Mandan Architectural Review Commission (MARC) for an unexpired term ending December 31, 2015. Residents, members of the local business community and architects are encouraged to confirm their interest in serving on MARC with a letter summarizing their background and reasons for their interest. Letters should be submitted by August 31, 2015, to Carolyn Reisenauer, Building Inspection at 205 Second Avenue NW, Mandan, ND 58554. For more information, please call
667-3230. An application for approval by MARC is required before any commercial building is constructed or its exterior is altered, remodeled or repainted a color different than that existing on the subject street, site or area. Components of a building project that are subject to the review include construction materials and colors, building design, setbacks, screening of dumpsters and building mechanical equipment, landscaping, and lighting. MARC also reviews requests for sign permits. The Mandan Architectural Review Commission consists of nine members,
including the building inspector, fire chief and city engineer, or their designees, who will serve as voting members by virtue of their positions. Whenever possible, these members include a licensed architect or engineer, a business owner and a landscape architect/designer or landscape contractor. The remaining members need be either a resident of the city or an owner of property within the city. MARC meetings are typically held the second and fourth Tuesday at 1 p.m. at City Hall and a minimum of 50 percent of meeting attendance is required.
APPRAISAL ROUNDTABLE REVEALS COMP TIPS The association hosted its first Appraisal Roundtable event in July. Prompted by Government Affairs Committee discussion and concern on recent appraisal results, the BMHBA reached out to local appraisers to participate in an educational lunch event. Certified Residential Appraisers Joe Ibach and Al Kunick shared insight about their industry including the standards set forth by the Uniform Standards of Professional Appraisal Practice (USPAP). Both encouraged builders to share as much information about the home as possible and early on. They stressed the need to include all options of new construction and custom builds at the onset during the preconstruction appraisal and to avoid change orders during the build. Ibach and Kunick said that appraisers would be interested in collecting sales data on spec homes from a single source. The association did reach out to
participants to gauge interest from builders to share the sales data for use a comps. That survey is still open online at https://www.surveymonkey.com/r/ speccomps.
Certified Residential Appraiser Joe Ibach addresses members at the Appraisal Roundtable event in July.
August 2015 | Building Buzz
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BMHBA NEWS
LIGHTING UP THE COURSE A fast moving storm didn’t stop 141 golfers from finishing 18 holes on the scenic course at Hawktree Golf Club July 14.
The Association hosted its 28th Annual PAC Golf Tournament with the Bismarck-Mandan Board of Realtors. The tournament is an anticipated event that was created to draw attention to and solicit support for PAC and advocacy fund contributions. The event began with a shotgun start at noon, just after participants picked up a boxed lunch. Each attendee was treated to two drink tickets courtesy of Drink Cart Sponsor Bismarck Title Company. They also enjoyed games hosted by hole sponsors and a crack at the title for longest putt, longest drive and closest to the pin, which were sponsored by North Dakota Guaranty & Title. After a hot day on the greens, guests got to cool off in the club house as they enjoyed steak, potatoes and cheesecake.
Congratulations to longest putt winners Ann Andre and Jim Jeromchek, longest drive winners Jen Heck and Jason Schmidt and closet to the pin winners Jen Heck and Tim Herrmann. Also, congrats to the first place gross team Josh Herner, Jesse Herner, Levi French and Brent
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Building Buzz | August 2015
Holzer and first place net team Shane Gaffeney and Kurt Carney.
Thank you event sponsors for making this even possible!
Save the date for next year’s event, which is July 12, 2016 at Prairie West Golf Course in Mandan.
BMHBA NEWS SPORTING A MULLET AT SPORTING CLAYS August 27, 2015, 4:00 pm – 7:00 pm Location: Capital City Sporting Clays The 8th Annual Sporting Clay Shoot is taking on a fun twist in 2015. The Events Committee announces a “Redneck” theme for this year’s event.
“We really wanted to add some fun and excitement to our shoot this year and the Redneck theme resonated well with the committee and led to some fun shooting ideas,” said Events Committee Chairman Marc Menge of BNC Bank. The Sporting Clay Shoot is scheduled for Thursday, Aug. 27 from 4-7 p.m. at Capital City Sporting Clays in Bismarck. Attendees are encouraged up the ante with Redneck-inspired attire. Registration is $75 per
person and includes 10 shooting stations, target fees, shells, earplugs, dinner and door prizes. Shooters need only bring their own gun and eye protection. Each team will consist of six shooters. A limited number of sponsorships are available, some of which include shooters. Register online at bmhba.com/ events or call 222-2400.
PARADE OF HOMES FAST APPROACHING The Fall Parade of Homes registration is now available. Builders are encouraged to enter homes into the parade to take advantage of the high traffic and unmatched exposure to new construction. This year’s event runs Sept. 24-27.
Early polling points to a strong showing of custom and spec homes throughout Bismarck-Mandan. With your support, the association aims to surpass last fall’s numbers, which included 37 homes by 25 builders viewed by 2,377 adults. Parade of Homes registration packets are available online at bmhba.com/parade-of-homes.aspx or by contacting the office at 222-2400 or info@bmhba.com. As the date draws near, members may be contacted by
our magazine publisher The Printers about advertising opportunities. Information about advertising options may be directed to Deb Seminary at debiwseminary@gmail.com or by calling 255-3422.
NATIONAL SPEAKER BOOKED FOR BMHBA AWARDS EVENT Former NAHB Senior Economist and national speaker Elliot Eisenberg, Ph.D., will be the BMHBA’s special guest presenter at the Fall Awards Mixer on Oct. 10 at the Ramada Hotel. Eisenberg is a nationally acclaimed economist and public speaker specializing in making the arcana and minutia of economics fun, relevant and educational. Chief Economist for GraphsandLaughs, LLC, he writes a syndicated column and authors a daily 70 word commentary on the economy. He is
a frequent speaker on topics including economic forecasts, economic impact of industries such as home building and tourism, consequences of government regulation, strategic business development and other current economic issues.
Online registration for the Fall Awards Mixer is open at bmhba.com/events. You won’t want to miss this opportunity to celebrate the success of the Fall Parade of Homes and hear from an Former NAHB Senior Economist extraordinary presenter. Elliot Eisenberg, Ph.D August 2015 | Building Buzz
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NATIONAL NEWS
NAHB SEEKS EXTENSION ON OVERTIME COMMENT PERIOD
NATIONAL NEWS
NAHB sent a letter on July 14, 2015 to U.S. Labor Secretary Thomas Perez seeking a 90-day extension of the current Sept. 4 deadline to submit comments on a Department of Labor (DOL) overtime proposal. The proposed rule would increase the salary level at which certain “white collar” workers would be exempt from minimum wage and overtime pay from the current $23,660 to $50,440. NAHB economists have released a state-by-state breakdown showing in
NAHB is concerned that changes to the current overtime standard will reduce job-advancement opportunities and the hours of fulltime construction supervisors, leading “This is an important rulemaking to construction delays, increased costs effort affecting thousands of employers including those in the home and less affordable housing options for consumers. building industry, which requires The new proposed overtime careful review and discussion by regulations would take effect on Jan. home builders and specialty trade 1, 2016. contractors in order to understand the possible ramifications” of the proposed rule, the letter stated. total, more than 110,000 construction supervisors would no longer be eligible for the exemption, and may be overtime-eligible under this new rule.
HOUSE PUSHES BACK ON EPA OVERREACH NAHB achieved an important victory for builders when the U.S. House of Representatives passed H.R. 2042, the Ratepayer Protection Act of 2015, on June 25. The bill aims to curtail the Environmental Protection Agency’s (EPA’s) proposed Clean Power Plan rule, which would have a negative impact on the home building industry.
NATIONAL NEWS
While EPA’s proposed rule is meant to regulate greenhouse gas (GHG) emissions from existing power plants, its broad interpretation reaches beyond the agency’s statutory authority. Specifically, EPA includes consumer energy efficiency and demand-side management in calculating state goals and as an allowable part of required state plans to reduce future GHG emissions. However, as NAHB outlined in comments submitted to EPA, stricter energy codes would affect only new construction and EPA has no authority over building codes.
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What’s more, the energy efficiency requirements on
Building Buzz | August 2015
new homes will drastically increase costs to home buyers, without guaranteeing real emissions reductions. After all, no federal or state agency can control how much electrical power a home owner decides to use once the building is occupied. Although EPA had originally planned to finalize its regulations by June 15, it now expects to release a final rule in August.
NATIONAL NEWS
CONSUMERS VOICE IN JUNE
OPTIMISTIC OUTLOOK
Consumer sentiment and consumer confidence are two indexes showing consumers’ perceptions of current business, income and employment conditions, as well as their expectations for the future’s economy.
In contrast to the slow, steady recovery in consumer confidence, plans to buy a home snapped back sharply
after declining during the recession. The percentage of respondents planning to buy a home within 6 months more than doubled in the second half of 2010 and remains at elevated levels four years later.
NATIONAL NEWS
In June, both the University of Michigan Index of Consumer Sentiment and the Conference Board Consumer Confidence Index rose. These gains reflect continuing improvement in several sectors of the economy. Strong job gains and an unemployment rate well off its peak, accumulating momentum in recent housing starts and sales, as well as a rebound in retail sales after a slow first quarter combine to point to consumers gaining confidence in the economic recovery.
HOMEOWNERSHIP PROGRAMS PURCHASE LIMIT ADJUSTED The Industrial Commission approved an adjustment of the purchase price limit for North Dakota Housing Finance Agency’s (NDHFA) FirstHome™ and HomeAccess programs today.
The limit for Burleigh and Morton Counties was increased to $277,683 for a single-family home purchase. The change is effective July 1, 2015. NDHFA offers low-cost financing, and down payment and closing cost assistance to first-time buyers through
NATIONAL NEWS
“The Housing Finance Agency’s affordable mortgage loans have helped more than 39,000 North Dakota families achieve their homeownership dreams,” said members of the commission in a joint statement. The Industrial Commission, consisting of Governor Jack Dalrymple as chairman, Agriculture Commissioner Doug Goehring and Attorney General Wayne Stenehjem, oversees NDHFA.
its FirstHome program. Households who have previously owned a home may qualify for similar assistance through the agency’s HomeAccess program if they are headed by a single parent or if they include a disabled or elderly member or a veteran honorably discharged from active duty.
NDHFA’s loans are offered through a network of lending and real estate partners. For more, visit the agency’s website at www.ndhfa.org. August 2015 | Building Buzz
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28 REASONS (and Counting)
WHY EPA WATER RULE SHOULD BE RESCINDED Since the end of June, 28 state attorneys general, including North Dakota’s Wayne Stenehjem, have filed lawsuits seeking to overturn a federal rule that defines the “waters of the United States” and the jurisdictional scope of the Clean Water Act.
NAHB has also filed its own lawsuit against the Environmental Protection Agency and the U.S. Army Corps of Engineers in the U.S. District Court, Southern District of Texas, charging that EPA and the Corps are “set and determined to exert jurisdiction
over virtually every water feature imaginable.”
The water rule, which will go into effect Aug. 28, is important to the home building industry because it changes what areas can be regulated by the federal government under the Clean Water Act and when builders and developers must obtain federal permits. In addition to challenging the rule in the courts, NAHB continues to successfully engage legislators. With bipartisan support, the House recently approved H.R. 1732, the Regulatory
Integrity Protection Act, which would require EPA and the Corps to withdraw their rule and develop a new plan to safeguard America’s waterways in consultation with state and local governments and other affected stakeholders, including small businesses. NAHB is also urging the Senate to pass companion legislation, S. 1140, the Federal Water Quality Protection Act. Bismarck-Mandan builders are encouraged to contact their Sen. John Hoeven and Sen. Heidi Heitkamp and urge them to support this bill.
OVERTIME THRESHOLD WILL MORE THAN DOUBLE IN 2016 U.S. Department of Labor will release a draft regulation later this week that would increase the federal overtime salary threshold from the current $23,660 to $50,440. This could impact just under 20,000 residential construction supervisors, according to preliminary estimates from NAHB economists.
The new regulations would take effect in 2016.
NAHB is concerned that changes to the current overtime standard will reduce job-advancement opportunities and the hours of full-time construction supervisors, leading to construction delays, increased costs and less affordable housing options for consumers. Under current law, workers who earn less than $23,660 a year are considered non-exempt employees by the Department of Labor and employers must pay them time-anda-half for any hours they work over a traditional 40-hour work week.
With the Department of Labor acting to more than double this overtime threshold to over $50,000, NAHB and others in the business community argue that such a dramatic surge is unlikely to result in an increase in
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Building Buzz | August 2015
workers’ take-home pay. Rather, it would force business owners to structure their workforce to compensate by scaling back on pay and benefits, as well as cutting hours to avoid the overtime requirements. NAHB, along with our broad-based coalition of business organizations known as the Partnership to Protect Workplace Opportunity, met with the White House last month to express our concern about the impending rule.
on June 10 and NAHB sent a letter to lawmakers stating that such a unilateral action by the administration could raise wage costs and result in fewer jobs. NAHB continues to monitor the situation closely.
The House Education and Workforce Committee held a hearing on this issue
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PROPERTY TAX COLLECTIONS TOTAL $500 BILLION OVER LAST FOUR QUARTERS According to NAHB tabulations of the Census Bureau’s quarterly data, property taxes constituted 39.5% of state and local tax receipts among major sources over the last four quarters.
From the first quarter of 2014 to the end of the first quarter of 2015, sales taxes and individual taxes were responsible for 28% each. At 4.5%, corporate income taxes held the smallest share of state and local tax receipts among major sources.
Further gains are expected in all state and local tax sources as the economic recovery continues, however state and local individual income tax, corporate income tax, and sales tax collections are particularly responsive to changing economic conditions. Gains in state and local nonproperty tax collections had outpaced increases in property tax receipts until recently. This trend pushed the property tax share of total receipts from the four major sources from a high of 44.9% in the third quarter of 2010 to just below 40% for the start
of 2015. The share stabilized recently as nominal property tax revenues continue to grow. Furthermore, the current property tax share remains higher than pre-housing boom measures.
Revenues from property taxes totaled just under $501 billion for the four quarters ending with the first quarter of 2015. Lagging property assessments and annual adjustments smooth property
tax collections across business cycles. Nominal property tax collections are not as prone to cyclical fluctuations as other tax collections and have tended to increase with minor business cycle fluctuations.
* Data footnote: Census data for property tax collections include taxes paid for all real estate assets (as well as personal property), including owner-occupied homes, rental housing, commercial real estate, and agriculture. However, housing’s share is the largest when considering the stock of both owner-occupied and rental housing units.
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August 2015 | Building Buzz
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NDAB NEWS
Volume XXII, Issue 8
Monthly News from the North Dakota Association of Builders
This month, I wanted to point out some important legislation that passed nationally recently, as well as NAHB's stance for our industry. On May 27, the Environmental Protection Agency and the U.S. Army Corps of Engineers finalized the long-awaited rule to define “waters of the United States” and the jurisdictional scope of the Clean Water Act. This rule takes effect in August. It is important to the home building industry because it changes what areas can be regulated by the federal government under the LeRoy Kurtyka act. Despite the agencies’ claims that this rule is NDAB President narrower in scope than existing regulations, the final rule contains changes that could significantly expand federal jurisdiction, triggering additional expensive and time-consuming permitting and regulatory requirements. Please reach out to Kim or myself, or visit www.nahb.org, if you have questions or concerns on what this means for you and your business. Thank you. Waters of the United States: The Final Rule: NAHB policy calls on the agencies: 1. To adopt regulations, guidance and policies asserting that “navigability” is the guiding factor to determine the geographic reach of the Clean Water Act, consistent with congressional intent. 2. To adopt regulations, guidance and policies asserting federal authority only over activities that “discharge” or “add” materials to jurisdictional waters. 3. In revising their regulations on the extent of Clean Water Act jurisdiction, to provide a set of clear and common-sense criteria that can be understood by those regulated and can be uniformly applied by the Corps and EPA field officers in all districts. Why It Matters Despite some improvements to the original proposal, the final rule contains overly broad language that could place millions of additional acres of private land under federal jurisdiction. The rule is so extreme that the federal government will actually regulate certain roadside ditches, isolated ponds and channels that may only flow after a heavy rainfall. This means, for example, that a builder in Arizona would have to get a permit for an activity in a dry desert wash that could be 30 miles from the nearest river. Such intrusive federal encroachment is bad governance and will inevitably lead to bureaucratic delays, increased project costs and mitigation fees, and ultimately, decreased housing affordability. This federal overreach goes well beyond congressional intent and the limits of jurisdiction set forth by the U.S. Supreme Court. The bottom line is that, contrary to this rule, EPA and the Corps must recognize there are limits to the reach of the Clean Water Act. Without these limits, home builders and developers must obtain costly federal permits even when their activities impact the most marginal features commonly found on private property NAHB Actions NAHB has been involved in trying to shape this rule since it was first proposed in April 2014. NAHB submitted extensive comments, urging the agencies to withdraw the rule and suggesting that Congress is better equipped to determine which areas should be affected by federal statute. NAHB also sought significant changes to make the proposal more understandable and workable in the field. NAHB continues to successfully engage legislators on this rule. With bipartisan support, the House approved H.R. 1732, the Regulatory Integrity Protection Act, which would require EPA and the Corps to withdraw their rule and develop a new plan to safeguard America’s waterways in consultation with state and local governments and other affected stakeholders, including small businesses. NAHB is also urging the Senate to pass companion legislation, S. 1140, the Federal Water Quality Protection Act. Now that the rule is finalized, NAHB is considering all of its options, including legal action. The U.S. Supreme Court has already ruled twice there are limits to the scope of federal jurisdiction under the Clean Water Act.
August 2015
Together Again June was a busy month for many reasons, but for NDAB Board of Directors it meant a chance to get together for our summer board meeting. As we gathered in Grand Forks we spent the day discussing what is happening across the state in the industry, what NDAB can be doing to offer better support and more education opportunities and how to enKim Schneider gage younger people to become interested in the NDAB Executive Officer construction industry. John Koerselman with the HBA of Fargo-Moorhead was voted to become NDAB-PAC Trustee and conducted his first official meeting with the trustees and local Executive Officers finding out why they are involved and how we can continue to be successful along with NAHB’s BUILDPAC program. With summer being a busy season for our members and the fact that many had just returned from NAHB board meetings in D.C. we send a heartfelt thank you for the continued support and the dedication you give to the state association as well as your local association. The NDAB Board of Directors will once again be joining together in Dickinson November 19-20 for our Board of Directors meeting, NDAB-PAC meeting and Annual Banquet. We will be welcoming a special guest from NAHB, swearing in our new board of Directors and our new State President, Arnold Karsky from Dickinson Area Builders Association. It will be a night of celebrations and the opportunity to thank our current State President LeRoy Kurtyka and outgoing board members. More details of the events will be coming out shortly, but if interested in any sponsorship opportunities, please let us know. Our annual banquet is our largest attendance event of the year of members from across the state! With hard work comes play and the Birdie with the Builders golf event was a great time! The rain stopped and the sun came out to provide us with the perfect day of golf at Kings Walk golf course. We had a total of 59 golfers including Senators Phil Murphy, George Sinner, Tom Campbell and Lonnie Laffen. Great prizes, food and drinks capped off a fun and successful day that could not have happened without our great sponsors. A big thank you to the following companies who were sponsors for our great event: Hole Sponsor: Gate City Bank Award Sponsor: Lunseth Plumbing and Heating Prize Sponsors: Dixon Golf and Gateway Chevrolet Special Thanks to Gateway Chevrolet, our golfers even had a chance at winning a brand new truck! Thank you for your support! As we wrap up the warm months and kids head back to school, we hope everyone had a fun and safe summer. 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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Building Buzz | August 2015
Around the State Dot Frank, Executive Officer 701-222-2400
bmhba.com
Members participated in the Association’s first Appraisal Roundtable. The event featured education on the appraisal process and provided insight to ensure accurate reports. Builder members were invited to a sponsored NAHB webinar on new mortgage disclosure rules. Participants were provided complimentary lunch and had access to a underwriter in the audience. The Annual PAC Golf Tournament was another sell out event. Members of the BMHBA and BMBOR spent July 14 at Hawktree Golf Club to raise funds for PAC and advocacy work. Registration for the Sporting Clay Shoot is open. Members are encouraged to network at the annual affair that features a gun giveaway. Former NAHB Economist Elliot Eisenberg is coming to Bismarck-Mandan. Details are pending as we prepare for the Oct. 8 Fall Awards event.
Forx Builders Association Betty McDonald, Executive Officer 701-746-4536 forxbuilders.com
Dickinson Area Builders are busy working on the Annual Picnic and our Annual Golf Scramble. The picnic will be held at Eagles Park on Wednesday, August 12, 6:00 p.m. The picnic is for members, employees and families. Our Golf Scramble is set for Thursday, August 20 at Heart River Golf Course. Watch for more details on this event. Scholarship winners will be announced on August 1. Next General Membership Meeting will be at Lady J’s Club on September 2nd
Bryce Johnson, Executive Vice President 701-232-5846 hbafm.com
The HBA of F-M’s July Golf Outing was a huge success with 140 members golfing. August is Associate Appreciation month, the HBA of F-M is holding a picnic Aug. 13 to celebrate Associate members. The Fall Parade of Homes will be Sept. 25 -26 & Oct. 3-4 and the Remodeled Home Tour is on the second weekend only, Oct. 3-4. The HBA of F-M continually works on issues related to the F-M Diversion and Oxbow Ring Levee. The HBA of F-M has convened the codes committee to review NAHB suggestions for possible amendments
www.ndbuild.com
A good time was had by all that attended the Tim Shea’s Nursery & Landscaping Builders after Hours. Thank you Sheas for hosting the event. Our annual Golf Outing is scheduled for September 17th at the Grand Forks Country Club. Marvin Windows and Doors is the Title Sponsor. There are new fun games planned on the course as well as cash prizes for the contest winners. The Lighting Gallery will host the September 23rd Builders after Hours as one way to help celebrate their 15th anniversary in business.
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
before Fargo adopts the 2015 code. Public Affairs Intern Mike Pfau completed his final day of his internship in July; the HBA of F-M thanks him for all of his help!
MAB Annual Past Presidents’ Golf Tournament is set for Monday, August 17th. Pre-tournament lunch provided by Souris River Designs. Registration begins @ 12:00 noonat the Vardon Golf Club and shotgun start is at 1:00 p.m. We will have PAC Poker, a putting contest and door prizes for all golfers. Sept. 15th Builders After Hours will be hosted by Verendrye Electric at their newly expanded Minot office. Bring a prospective member and win a prize!
Williston Area Builders Association 701-572-5744 willistonbuilders.com
1st Annual Golf Scramble, Thursday August 6th, 2015 at 1pm at the Eagle Ridge Golf Course. Registration and information can be found on the WABA website atwww.willistonbuilders.com. An Appreciation Picnic for members is scheduled for August 20. Details will be provided in the near future. The Board has selected the weekend of Oct 3 & 4th for the 3rd Annual Parade of Homes Event. Our EO (Beth) has left us in pursuit of other ventures, and we wish her well. Our new search committee is busy working on her replacement. All correspondence and phone calls can still be directed to their current address and/or phone number which is now being manned by volunteers from our Board of Directors. Any urgent business can be accomplished by contacting David J. Nordenstrom,
North Dakota Association of Builders
President, at 320-360-5807. We thank you for your patience while we are going through this process. Save the Date! NDAB will be hosting the Annual Banquet in Dickinson, ND this year! Mark your calendars for Friday, November 20th and join us for a night of recognition, networking, and fun. We will welcome 2016 Board Members and give a great send off to those retiring at the close of 2015. There will also be great food, PAC fundraisers, and several other fun surprises. You won't want to miss it! Watch for further details! Thank you to the NDAB 2015 Partners! We truly appreciate your support and we are very excited to serve you throughout the entire year!
Gold Partner - Montana Dakota Utilities Silver Partners - Bismarck-Mandan Home Builders Association, Dickinson Area Builders Association, Home Builders Association of Fargo-Moorhead, & Northern Plumbing Supply 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 Thanks to our 2015 ND Professional Builders! We appreciate your commitment to continuing educations and staying up to date with the newest industry standards! Visit www.ndbuild.com for more info or to apply!
Eric Berg, Eric Berg Construction, Fargo Charles Bon, C’est Bon Construction, Robinson Michael Bullinger, Western Products Inc., Fargo Don Dabbert, Dabbert Custom Homes, Fargo Jason Eid, Eid-Co Buildings, Inc., Fargo Arthur Goldammer, Verity Homes, Bismarck/ Fargo John Gunkelman, Dakota Construction, Fargo Todd Halle, T & S Custom Homes, Harwood Vern Hanson, Hanson Bros., Inc., Fargo Robert Kochmann, Kochmann Brothers Homes, Fargo Greg Krueger, Krueger Construction, Fargo Tyrone Leslie, Heritage Homes, Fargo Gary Orth, Cornerstone Specialties, Fargo Jarred Roloff, Paramount Builders, Bismarck Jamie Schmidt, Triton Homes, Bismarck Tom Spaeth, Accent Contracting, Fargo Mike Workman, Jordahl Custom Homes, Fargo Charlie Zach, Zach Construction, Wahpeton
August 2015
August 2015 | Building Buzz
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UPCOMING BMHBA EVENTS
Volunteer Day for Cpl Mark Haegele - Aug. 15 at 10am 8th Annual Sporting Clay Shoot - August 27 at 4pm Fall Parade of Homes - Sept. 24-27 Homes for Our Troops Key Ceremony - Sept. 26 at 10am Fall Awards Mixer - Oct. 8 at 5:30pm
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