BISMARCK-MANDAN HOME BUILDERS ASSOCIATION AUGUST 2019 || WWW.BMHBA.COM
BUILDING Building Buzz is a publication of the Bismarck-Mandan Home Builders Association.
Bismarck-Mandan Home Builders Association 2600 Gateway Ave, Ste 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730
www.facebook.com/bmhba www.twitter.com/bmhba PROFESSIONALS BUILDING OUR COMMUNITY THROUGH PROMOTION OF SINCE 1958.
www.houzz.com/pro/bmhba
PRESIDENT Northern Plains Plumbing, Heating & Air 701-222-2155 greg@northernplains.net
Sattler Homes 701-255-7628 jeff@bismarckbuilder.com VICE PRESIDENT
Choice Bank 701-258-3300 s.franklin@bankwithchoice.com
Verity Homes of Bismarck 701-663-4117 rory@verityhomes.com
K & L Homes 701-258-4584 cmoldenhauer@midconetwork.com
2ND VICE PRESIDENT Aspire Homes 701-426-8583 greg@daretoaspire.com
Townsquare Media 701-250-6602 bill.schmid@townsquaremedia.com
TREASURER Boulder Homes 701-400-5554 boulderhomesnd@gmail.com
Stoneshire Builders 701-471-6935 brian@stoneshirebuilders.com
PAST PRESIDENT Gate City Bank 701-355-7633 lynnklein@gatecity.bank
BNC National Bank 701-250-3050 mmenge@bncbank.com
Triton Homes 701-223-3030 jamie.schmidt@investcore.com
Dot Frank
Simone Marchus
Elysha Head
BPS MAKES PITCH FOR MILL LEVY INCREASE
HOME BUILDERS ASSOCIATION INSPIRES STUDENTS
HOUSING OPTIONS EXPAND AS HOMES GET SMALLER
TRUMP SIGNS ORDER ON HOUSING RECOGNIZING
NAHB’S LARGEST CONTINGENT: ASSOCIATE MEMBERS
Representing the diversity of the building industry, the BMHBA consists of building specialists from every section of the construction field and associated industries. Your membership strengthens our voice in Bismarck-Mandan construction sector as well as at a state and national level. Please renew your membership by July 31st, 2019.
Mark Braun
Ryan Peterson
Neil Pinnow
Karin Haskell
Jason Frank
Carla Dirk
Eric Budd
Preston Schmidt
Brad Balerud Greg Zenker
Justin Steele
Don Volk
Amber Sandness
Pete Brendel
Brandon Hoffman
Chad Johnson
Gene Storbakken
Sarah Grendahl
Cory Knutson Curt Binstock
Alissa Kleinsasser
Scott Duchsherer
Brian Eiseman
Elizabeth H.
Heather Nord
Claudette Schmidt
Kevin Johnson
Eric Proden
Help us welcome the newest members of the Bismarck-Mandan Home Builders Association!
Brandon Fraser
Casey Olheiser
2019 Hello BMHBA members, August is here, which means summer is winding down but the construction season is still in full swing. Many of you are hard at work getting your homes ready for the Fall Parade of Homes. Mark your calendars for Sept. 26-29. Contracts have been sent out and have a due date of Aug. 23.
We continue to meet with the future generation of builders through the Kids Build Mandan event. The board also participated in the Lunch with Heroes program where we helped children construct a mini planet craft project.
I would encourage everybody to either consider a seat on the We have some changes to this year’s Fall Parade of Homes, including BMHBA Board or think of somebody to nominate for a board position. If you have any question on running for a board position just new hours on Thursday and Friday (now 5-8 p.m.), no check-in recontact the office and they can help answer any questions. To nomiquired on the tickets, no awards, homes numbered by location not nate someone to serve on our board of directors visit surveyby price, and e-tickets will be available to purchase. monkey.com/r/2020HBABoard. Thank you to the sponsors and players who participated in the AnnuGet ready to register for the 2020 Home Show. Online registration is al PAC Golf tournament. This year’s event was held at Prairie West live and accessible through our website BisManHomeShow.com. Golf Course. Members also recently came out to our Annual Sporting Clay Shoot. Thank You Tom Haider from Haider Glass Specialties for grilling again! Regards,
2019 PRESIDENT :: BMHBA
MONTH
YEAR
2015 2016 2017 2018 2019
2015 2016 2017 2018 2019
2015 2016 2017 2018 2019
2015 2016 2017 2018 2019
2015 2016 2017 2018 2019
JANUARY
0
9
1
0
10
0
0
0
1
0
0
2
0
0
2
0
0
2
0
0
0
0
2
FEBRUARY
3
4
5
2
0
0
0
0
1
2
6
5
0
0
0
0
3
0
1
1
0
0
0
MARCH
21
22
14
2
9
2
2
1
11
6
4
8
2
0
3
0
0
0
9
9
4
2
4
APRIL
52
29
40
27
26
4
3
6
14
12
8
16
11
18
2
4
0
6
14
5
11
11
14
MAY
31
46
29
16
28
5
6
4
26
13
11
15
11
17
2
5
5
0
14
16
7
20
10
JUNE
31
43
48
24
18
10
2
2
21
20
13
13
4
1
6
3
1
1
8
11
4
4
6
JULY
40
16
60
22
3
3
9
13
6
11
0
5
1
5
13
9
4
3
AUGUST
20
48
16
27
6
1
17
7
13
20
8
2
9
4
8
9
6
8
SEPTEMBER
28
44
26
22
8
3
16
14
26
11
3
3
4
5
9
9
9
6
OCTOBER
54
14
22
15
4
7
9
29
20
9
17
10
7
5
4
7
3
7
NOVEMBER
16
11
9
11
3
0
7
7
7
6
2
5
0
0
3
4
1
0
DECEMBER
1
0
0
1
0
0
0
0
0
0
1
0
4
0
0
0
2
0
45
27
13
132 123 114 116
28
67
40
37
28
9
83
80
51
61
36
21
13
13
74
28
36
15
12
9
9
46
42
26
37
36
TOTAL
297 286 270 169
91
YTD TOTAL
138 153 137
91
71
0
0
53
42
59
YTD Total
11% -10% -48% 28%
-38% 0%
-28% -21% 40% -53%
-58% -20% -25% 0%
-9% -38% 42% -3%
Total
-4% -6% -37% -46%
-40% -52%
-7% -7% 2% -76%
-40% -8% -24% -68%
-4% -36% 20% -41%
BISMARCK SINGLE FAMILY DWELLING VERITY HOMES SHAUN KESSLER CONST. DIVERSITY HOMES BISMARCK STATE COLLEGE SATTLER HOMES SATTLER HOMES INVESTCORE HALLMARK HOMES INVESTCORE INVESTCORE INVESTCORE EDDY MITZEL HOMES K & L HOMES PARAMOUNT BUILDERS BOULDER HOMES RWB CONTRACTING
4843 FELDSPAR DR 748 WALTER WAY 4619 NORMANDY ST 4011 HERD PL 3514 DOUBLEDAY DR 4908 E CALGARY AVE 3602 MERIDIAN DR 1224 ROUND TOP RD 202 RUTLAND DR 208 RUTLAND DR 3618 MERIDIAN DR 5434 MICA DR 3819 ENDEAVOR PL 3710 MONREO DR 2801 TREVINO DR 102 WATERCRESS AVE
BISMARCK ROW HOUSE PARAMOUNT BUILDERS PARAMOUNT BUILDERS APEX BUILDERS APEX BUILDERS
MANDAN SINGLE FAMILY DWELLING 723 WEST GLENWOOD DR 725 WEST GLENWOOD DR 4130 STEEL PL 4128 STEEL PL
BURLEIGH COUNTY SINGLE FAMILY DWELLING HUNTINGTON HOMES WELCH CONSTRUCTION JOE VETTER CONSTRUCTION ASPIRE HOMES
6505 COUNTRY RIDGE RD 14171 PARKER RANCH RD 13919 SADDLEHORN DR 833 PARKER RANCH RD
LINCOLN SINGLE FAMILY DWELLING SATTLER HOMES
13 MCGINNIS WY
DIVERSITY HOMES JE HOMES BARKER GROUP SCOTT NORTON
1208 PLAINSBEND SE 804 COBBLESTONE LP SW 3832 LAKEWOOD DR SE 5406 HIGHLAND RD N
MORTON COUNTY SINGLE FAMILY DWELLING SCHLOMER CONSTRUCTION DAVID KOCH
4640 HWY 1806 S 1926 VALLEY DR S
The Central Dakota Communications Center (CenCom) and Dakota Carrier Network (DCN) broke ground for a new public safety communications center. The center is located at DCN’s Bismarck location. More than 60 guests took part in the groundbreaking celebration including the CenCom Board of Directors and Executive Committee, DCN owner company representatives, Bismarck, Mandan and Burleigh County elected officials, Gov. Doug Burgum’s representative, North Dakota congressional delegation representatives, Bismarck Mandan Chamber EDC, and members of the public. “The public-private partnership between CenCom and DCN provides a long-term solution and the critical public safety communications infrastructure needed to maintain the safety of the region well into the future,” said CenCom Director Mike Dannenfelzer. “It is a wise use of tax dollars to leverage what DCN has already built rather than recreate a facility for our own existence. Our previous partnership
has been successful, and we look forward to operating under the same roof.” The project is endorsed by the Bismarck City Commission, Mandan City Commission and Burleigh County Commission. CenCom responds to 911 calls, nonemergency calls, fire and security alarms and many other services citizens use to seek public safety assistance. CenCom coordinates the dispatching of five law enforcement agencies, eight fire departments, six ambulance agencies and several other governmental services. CenCom, is a partnership between Bismarck, Mandan and Burleigh County and was established in 2016. The current facility has housed the operation for Bismarck-Burleigh since 2003. Mandan joined the operation in 2016. Growth in calls-for-service and public safety activities has required an increase in personnel and corresponding workspace. The current facility doesn’t allow for additional growth.
The Mandan City Commission will soon consider appointments for two terms on the Code Enforcement Appeals Board. One term will end Dec. 31, 2020, and the other ends in 2021. The Code Enforcement Appeals Board reviews code enforcement violation appeals and meets as needed. Candidates must be Mandan residents. Individuals interested in serving on the board are
encouraged to submit a letter summarizing their background and reasons for interest. Letters will be welcomed through Aug. 30, 2019, or until the positions are filled. Submit letters to Deputy Chief Lori Flaten, by e-mailing to lflaten@mandanpd.com or mailing to 205 1st Avenue NW, Mandan, ND 58554. For more information, please call 667-3250.
The City of Mandan reminds residents that household garbage totes must be placed with wheels and handle facing the home within 5 feet of the curb or alley and ideally 5 feet away from obstructions such as vehicles, retaining walls, mailboxes, utility poles and trees. If the Armstrong Sanitation driver deems a garbage container is too close to objects to safely be picked up, the garbage container will not be dumped.
The City of Bismarck is seeking quality photographs to help promote our community. Photographers of all ages and abilities are invited to submit their original photos of Bismarck spaces, places, people and activities. Abstract photography is welcome, as long as there is a connection to Bismarck. Photos may be used in print publications, communications and marketing materials, the City website and social media. Photo credit will be given to the photographer. Submission Deadline: July 8, 2019. Visit Bismarck.org for details.
North Dakota Housing Finance Agency (NDHFA) is currently accepting applications for affordable housing development assistance through the federal Low Income Housing Tax Credit (LIHTC) and National Housing Trust Fund (HTF) programs, and the state’s Housing Incentive Fund (HIF).
HIF supports the development of housing for low- to moderate-wage workers, the state’s aging population, individuals with disabilities and persons at-risk of homelessness. During the most recent legislative session, NDHFA received a $7.5 million appropriation from the general fund for the program.
“The development support North Dakota Housing Finance Agency administers aids communities in addressing the housing needs of their most vulnerable populations,” said Dave Flohr, NDHFA interim executive director.
The application process for each of NDHFA’s program is competitive with the top-scoring projects receiving conditional commitments from the agency. The applicants must provide evidence that there is a need for the type of housing proposed, that the community supports the development and that the construction costs are reasonable.
LIHTC encourages private sector investment in affordable housing through tax incentives. Property owners receive the housing credits for up to 10 years based on capital investment and level of commitment to low-income tenancy. NDHFA anticipates $3.2 million in credit authority will be available in 2020, pending congressional approval, which would generate more than $28 million in project equity.
Applications for the assistance are due by 5 p.m., CT, on Sept. 30, 2019. Funding awards are expected to be announced in early November.
More information on the programs and other financial and technical assistance provided by NDHFA is available online at The HTF’s purpose is to increase and www.ndhfa.org or by contacting the preserve the supply of housing for agency’s planning and housing development extremely low-income households, including division at (800) 292-8621 or homeless individuals and families. Through hfainfo@nd.gov. the program, $3 million is available.
Bismarck Superintendent Jason Hornbacher made a budget presentation to the school board on July 8 that included a suggested increase to the current mill levy. Hornbacher noted that while Bismarck Public Schools (BPS) is the largest school district in the state, BPS is tenth in the number of mills levied for taxes by the ten large school districts in North Dakota. Hornbacher outlined some budget efficiencies made over the past few years, as well as job duties and positions that have been absorbed or not filled. He said former board members and administrators have “…gotten it done for a very long time with very little,” and he believes, “It’s time to make an investment in students.” Hornbacher said a five mill increase to the owner of a $200,000 home would cost $3.75 per month, for example. The board will continue to discuss the topic and needs to approve a preliminary budget before Aug. 10 and a final budget by Sept. 10th.
Bianco Realty has announced their top 6 "REALTORS® OF THE MONTH" for June: Shirley Thomas, Amber Sandness, Judy Maslowski, Darcy Fettig, Brenda Foster and Heidi Stein. These six REALTORS® had the highest sales totals at Bianco Realty in June 2019.
As part of Mandan’s joint community marketing program for 2019, the City of Mandan Business Development and Communications Department recently participated in the production of a new podcast series with local business owners and entrepreneurs under the theme “Made in Mandan.” Interviewed by Business Development and Communications Director Ellen Huber, six different business owners discuss experiences in starting, operating and growing businesses in Mandan, N.D. Some have used programs or participated in training sessions offered through the business development office or area partners such as the Small Business Development Center, SCORE, Center for Business and Technology, Lewis and Clark Development Group and Bank of North Dakota. The first episode was released July 29 with new episodes to follow every other week until late October. Find links at www.cityofmandan.com/ business. Episodes will be available via most podcast player
applications including Apple Podcasts, Google Podcasts, Spotify and Anchor FM. Video versions will be posted on Made in Mandan social media including Facebook, YouTube, Instagram and Linked In. The purpose of the podcast series is to inspire local entrepreneurism as well as to acquaint residents and people living elsewhere who may be interested in opening a business with area resources, community trends and other factors affecting their location and investment decisions. The podcast series is new to Mandan’s community marketing program, which is overseen by the City of Mandan Business Development and Communications Department with guidance from the Mandan Tomorrow – Leadership, Pride and Image Committee. The Creative Treatment taped the episodes June 26-27 in the Street Sounds studio, home of the Q1 network, located inside the National Day Calendar and Awesome 2 Products building at 712 W Main Street, Mandan.
The City of Mandan is between a rock and a hard place with regard to removal and replacement of traffic signals on Main Street and 10th Ave NW. As part of a federal aid project, the traffic signals must be removed. The City does not have the option to keep them at its own cost.
expected to be 10% or $170,000 paid for with funds from the 1% local sales tax.
Since Main Street is part of the state highway system, the traffic signals would have to meet warrant requirements with or without federal funds in order to remain. As advised by the NDDOT the city’s The North Dakota acceptance notice stated should Department of Transportation any information arise during (NDDOT) traffic operations the design of the project that studies of the Main Street would allow the signals to intersections of First Ave NW remain, the City would want to and 10th Ave NW found signals pursue that option. The to be unwarranted based on decision document submitted in factors such as vehicular and June also included a note pedestrian traffic volume and stating the same. The City turning movements. requested exploring signalized Essentially there’s not enough pedestrian crosswalks at both north-south traffic going intersections if the traffic straight through the light or signals are removed. Two-way turning left. stops would be likely for the intersections where signals are The City of Mandan will removed. receive $1.7 million in federal funds toward the replacement The signals are currently in of more than 30-year-old traffic a mandatory 90-day flashing signals at Sixth Ave NE, period for the NDDOT to test Collins Ave, Third Ave NW and traffic effects if the signals are Sixth Ave NW. The new signals removed. Unless the signal will have updated video becomes warranted, the traffic detection equipment and signals at First and 10th interconnection technology for Avenues NW will remain in better synchronization. The flash mode until removed with local share of the project is the 2020 project.
Mandan city leaders thank local businesses for donating to the boulevard tree-planting program. Business donations total $2,000 for 2019. These contributions will help plant new trees and replace trees removed due to Dutch Elm disease with more disease-resistant types. The City will match these donations. The tree-planting program offers partial reimbursement to residents or property-owners who plant boulevard trees adjacent to their property. Residents can receive up to $50 for each planted tree, as funding permits. Over 100 trees have been planted along city boulevards through this program since 2017! Mandan is proud to be a Tree City USA for 43 years. For more information on the boulevard tree-planting program or to donate, call City Arborist Katie Nagel at 751-7894 or visit www.cityofmandan.com/trees.
On Thursday, July 11th, the BMHBA and BMBOR hosted their combined golf tournament at Prairie West Golf Course in Mandan. The tournament included 18 holes of scramble-style golf, preceded by lunch, dinner and prizes. The event generated funds to support PAC. Both the BMHBA and BMBOR would like to extend their gratitude to the generous sponsors and golfers. If you are interested in being a sponsor next year, you can contact simone@bmhba.com.
On July 12th, the BMHBA hosted its third annual, Kids Build Mandan event, in conjunction with the Mandan Parks and Recreation summer MAC program. The day began with a field trip to The Dakota Adventist Academy to explore a 2018 Craftsmaninspired custom tiny home. After the tiny home tour, the MAC students toured the home building exhibit at the Gateway to Science Center. The BMHBA hopes to expand Kids Build Mandan to nearby communities in the future. If you would like to learn more about this program, please contact Simone at (701)222-2400 or email simone@bmhba.com.
Only three builder members claimed their first quarter rebate through the Member Rebate Program! Aspire Homes received $102 cash back, Hallmark Homes cashed in $264 and Sattler Homes claimed $220. The Member Rebate Program is offered exclusively to HBA members. The process to submit your claim in super simple and the cash back potential is big. To-date,
BMHBA members have received nearly $50,000 back on typical home construction purchases. The deadline to submit quarter two claims is Friday, Aug. 30, 2019. All claims MUST be submitted by the set claim deadline for each quarter. For more information visit www.NDABrebates.com, email info@bmhba.com or call 2222400.
Housing development within the United States needs a makeover. Past trends guided by regulations have led to a market saturated with single-family homes, garden apartments and condominiums, with little variety in between. A recent New York Times article emphasized how zoning regulations have created a dichotomy between single-family detached homes and large multifamily buildings, with single-family development favored across the country. This has led to supply shortages and issues in affordability. Other research has revealed that there is a “missing middle” in housing types. A greater mix — not simply a supply increase — of housing types is needed to meet an increasing diversity of income, households and generational needs. NAHB’s new “Diversifying Housing Options with Smaller Lots and Smaller Homes” report explores the issues involved in generating this greater mix, such as smaller homes, duplexes, townhouses, small-scale multifamily and accessory dwelling units (ADUs), and provides relevant best practices on regulatory and design options and barriers. Some of the key findings illustrate:
• How increasing multifamily development can be done effectively through infill housing approaches, and
• Why both a greater supply of housing and a greater diversity of housing types are required to meet the today’s increasingly diverse demographic of needs.
The report goes into greater detail identifying ordinances and codes across the United States that enable the construction of more varied housing types and smaller, more affordable homes. The company evaluated more than 100 codes and ordinances from a variety of communities and cities across four categories: ADU ordinances, small lot ordinances, cottage court ordinances and form -based codes (infill and greenfield).
Out of these, ADU ordinances, or those aimed at creating a secondary dwelling unit on the same lot as a main housing unit, have been the most effective in enabling a greater, more affordable housing mix. In further evaluating the wide array of ordinances and codes, best practices for each of the four categories are provided. For example, Portland, Ore., has passed ADU-promoting ordinances for nearly a century and in 2017 passed a statute requiring jurisdictions to allow ADUs wherever a house is allowed. A 2010 amendment waiving impact fees provided the greatest impact on ADU development; however, financing issues remain as construction costs have risen. As many may have found, implementing these types of new tools can also be difficult because of zoning and NIMBYism. Updating standards or codes to provide clear direction and to streamline the development review and approval process for these new housing types are critical for practicality and cost effectiveness. The report concludes with built examples that highlight how communities benefit from enabling smaller units, including proximity to nature and opportunity for community interaction for more individuals, and the availability of more land for other uses. Additional Resources:
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Deborah Myerson, a planning consultant, produced two recent pieces regarding these topics: how communities across the country are optimizing the use of ADUs, and how form-based codes can help expand housing supply. NAHB’s Housing For All webpage includes key strategies and examples that can be used as conversation starters and a blueprint for collaboration with local officials, planners and policymakers. NAHB’s Land Use 101 toolkit identify more tools and techniques, including details about the various players involved in closing the financing gap and getting viable, attractive projects built.
In a key victory for NAHB, President Trump put housing at the forefront of the national debate by signing an executive order that cites the need to cut costly regulations that are hampering the production of more affordable housing in America. NAHB Chairman Greg Ugalde attended the White House signing ceremony and provides further analysis on what the executive order means for our members in the video at the bottom of this blog post.
access to affordable rental housing and growing the inventory of for -sale housing, particularly at the entry-level. “NAHB analysis has found that regulations account for nearly 25% of the price of building a single-family home and more than 30% of the cost of a typical multifamily development. We are pleased that the president’s executive order calls for the formation of a White House Council chaired by HUD Secretary Ben Carson that will seek to reduce regulatory barriers that are making housing more costly.” More Progress on the Affordability Front Addressing the housing affordability crisis is the association’s top priority. NAHB has met with top White House officials and leaders of Congress numerous times to discuss strategies to resolve supply-side constraints that are acting as barriers to increase the production of quality, affordable housing.
Ugalde also issued the following official statement: “NAHB applauds President Trump for making housing a top national priority. With housing affordability near a 10-year low, the president’s executive order on this critical issue underscores that the White House is ready to take a leading role to help resolve the nation’s affordability crisis.
During the first week in June, NAHB and HUD cosponsored the Innovative Housing Showcase that took place on the National Mall. The event provided a great opportunity to shine a spotlight on the nation’s housing affordability crisis and to seek meaningful solutions. Industry and policy experts – including Cabinet secretaries, members of Congress and NAHB leaders – participated in several panels with the goal to seek innovative solutions to make housing more affordable. Exhibitors also featured model homes and new technologies designed to increase affordability.
And on June 5, nearly 700 builders went to Capitol Hill and held 300 individual meetings with their representatives and senators as part of NAHB’s 2019 Legislative Conference. Builders delivered an important message to members of Congress: There is “Given that homeownership historically has been part of the an urgent need to implement practical solutions to ease the American dream and a primary source of wealth for most American nation’s affordability woes and enable more families to achieve households, the need to tackle ongoing affordability concerns is homeownership or have access to affordable rental housing. especially urgent. As we celebrate National Homeownership Month, we must ensure that homeownership remains in reach for NAHB will continue to work with the White House, HUD younger and future generations. This can be achieved by providing Secretary Carson and Congress to achieve these goals.
Place your ad here for premium exposure. Just $21 per issue. Email info@bmhba.com.
In a victory for property rights, a Louisiana family earlier this month reached a settlement with the U.S. Fish and Wildlife Service in which the federal government agreed to drop its efforts to designate “critical habitat” for the dusky gopher frog on their land.
Appeals for the Fifth Circuit ruled that the government’s actions were permissible.
Two years later in a unanimous decision, the U.S. Supreme Court sent the critical habitat designation for the dusky gopher frog back to the Fifth Circuit for reconsideration. The Fifth Circuit then The case began in sent the case down to 2012 when the U.S. the U.S. District Fish and Wildlife Court for the Eastern Service sought to District of Louisiana, limit development on where the parties more than 1,500 acres entered into of the Louisiana settlement family’s land by discussions. designating it as a critical habitat for the Now that the Fish dusky gopher frog. and Wildlife Service The action was taken has settled the case in even though the favor of the Louisiana dusky gopher frog had landowners, the not been seen in agency is working on Louisiana for more a proposed than 50 years. rulemaking to define the Endangered In 2016, the U.S. Species Act term Circuit Court of “habitat.”
The latest edition of The New American Remodel is well underway in preparation for the International Builders’ Show (IBS) 2020 in Las Vegas.
solar panels central courtyard, spa, pool, wine room, five radiant fireplaces, summer kitchen and a rooftop terrace with views of the Las Vegas Strip.
Element Building Company is taking an outdated 1977-built home and transforming it into an exhibition of modern designs, innovative technology and energy efficiency.
Also, with its numerous efficiency and sustainability components, the home is expected to achieve the National Green Building Standard’s “Emerald” certification. The official unveiling of The New
What previously was a modest single-story, three -bed, two-bath home will soon be a stunning fourbed, five-bath residence. The project’s design team describes it as a “charming, ranch-style” property situated within a well-established equestrian community. Once construction is completed this fall, the two-story remodeled home will be more than double the size of the original, increasing from 2,170 to more than 4,800 square feet of indoor living space (7,523 total square feet, including outdoor living space). Among its many features, the home will boast: a showroom three-car garage,
American Remodel 2020 will take place during IBS 2020, Jan. 21-23. More details about the home and its counterpart, The New American Home, will be shared on NAHBNow throughout the coming months.
At the end of 2018, Associate members comprised 68% of NAHB membership, with a total count of nearly 80,000 members, according to a recent NAHB special report.
important than the duration of his or her membership.
state, local and national levels interact.”
Being able to grow these networks at “I believe that if you’re going to join a NAHB events such as the International group, you need to get involved to get the Builders’ Show (IBS) is critical for These members represent a variety of most out of it,” noted Mike Farr of Cascade home building-related professions, Manufacturing and NAHB’s 2018 Associate including: of the Year. Farr — who has served in • Subcontracting/specialty trade numerous leadership roles at the local, state contractor and national level, and been inducted into • Professional specialties (e.g., architecture, engineering, marketing, his local and state halls of fame — considers etc.) his fellow members to be an extension of his • Retail distributors/distributorships family who have supported him both • Financial services professionally and personally. “The business • Wholesale dealerships/ side comes and goes, but the family and distributorships friendships are everlasting,” he stated. • Other Associate activity (e.g., manufacturing, real estate, utilities, etc.)
Subcontracting is the largest group, representing 40% of Associate members, while professional specialties and financial services saw the largest year-over-year gains — rising to 13% and 10% of Associate membership, respectively. Associate members have a median tenure of 10 years, with 26% holding membership for 20 years or more. The most tenured segment is wholesale dealerships and distributors, with a median membership of 15 years. Optimizing Value However, the level of a member’s involvement is just as, if not, more
Advancing the Industry Member involvement also helps enhance professional development and provide a greater sense of the industry at large. professional development, especially for young professionals looking to enhance their “My membership at NAHB has provided careers. me the opportunity to be a voice for the industry — in a much more profound way “Prior to attending IBS, my involvement than my local involvement,” shared Linda and engagement had only been with fellow Mosier-Vaudt, CGA, CGP, CAPS, of Mosier- members in the state. I utilized them to Vaudt Consulting. Mosier-Vaudt is the 2019 keep me informed on what was going on at chair of the Associates Committee and 2018 the national level,” noted Chris Cowan, Associate Chairman’s Award winner. CPA, CCFIP, senior manager at CohnReznick. Cowan was recognized this “Interestingly enough, my national past year as an Associate member One to involvement has actually helped me become Watch. a much better advocate at the local and state level,” she added. “I understand how For more on the Associate member important our advocacy is, and how the report, visit https://bit.ly/2JnXX70.
Federal Reserve Chairman Jerome H. Powell told the Senate Banking Committee that the nation’s home builders are facing several supply-side challenges that are hindering housing affordability and “feel almost like they have been hit with a perfect storm here.”
“What we hear from home builders is a series of factors that are really holding them back and challenging affordability,” said Powell. Powell. “It’s also hard to get lots … and the rules for creating new lots are challenging. Material costs too, have gone up and some of that is This exchange tariffs. The home occurred after Sen. builders feel almost Tina Smith (D-Minn.) like they have been hit said that housing costs by a perfect storm are growing faster here.” than wage growth and there is a shortage of You can listen to housing at price points his testimony online at that people can afford. https://bit.ly/2NY6r91.
Arizona and Florida have long been popular retirement destinations — not only for their warmer climates, but factors such as cost of living and local taxes as well. These same factors are making other areas increasingly attractive, with New Mexico now edging out its Southwest neighbor and the Sunshine State as the No. 1 retirement destination, according to a new survey by United Van Lines.
income tax rate of 4.9% and a median home value of $171,300 also make it a more attractive retirement option — especially for buyers who have accumulated a fair amount of equity in their current homes. “Most 55+ buyers are looking to downsize,” Blake noted. “If they can’t take
“These buyers spend double what a conventional buyer spends on upgrades, but they’re more much sensitive to monthly costs,” she added, which is why cost of living is an important consideration in boomers’ retirement decisions. This includes energyefficient features that can help lower their monthly costs — a strong concept that resonates well with this market.
“I think New Mexico is getting a lot of its traffic from California,” observed Deborah Blake, principal at The Ipsum Group. “People are exiting because of cost of living, and property and income taxes.” California currently has the top individual tax income rate of 13.3%, and it ranked eighth out of all 50 states in average real estate taxes, based on NAHB analysis of data from the 2017 American Community Survey and U.S. Census Bureau, at $4,623 annually. (New Jersey — another state seeing a fair amount of outbound migration — tops that list with average real estate taxes of $8,485 per year.) New Mexico, on the other hand, is near the bottom 20% of states, with annual real estate taxes averaging around $1,500. An
advantage of their home equity, they’re not making the move.” Buyers are looking not only to purchase price, but also upgrades, as ways to maximize their equity and create a home they can live in independently for years to come. They believe this will be their last home, so they want to finally have everything they have pinned on their
Housing affordability — a top priority for NAHB in 2019 — is a critical issue nationwide and a chief concern among county officials (many of whom are current and former builders). One piece of the affordability struggle in the United States is the regulatory burden on builders. On average, regulations imposed by government at all levels account for 24% of the price of building a single-family home and 32% of the cost of a typical multifamily development.
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Although there is no single solution to the affordability challenge, incentives can provide some relief. In some areas, energy efficiency and/or green home certification has helped builders qualify for several types of incentives. State and local jurisdictions and even a few public utilities provide advantages to builders throughout the design, construction and ultimate sale of a property. Many have been successful in incentivizing green home certification with rebates, tax credits, density bonuses and other tangible benefits. Examples of state and local jurisdiction incentives for energy efficient and/or green home certifications include:
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Pinterest boards and dog-eared in home and garden magazines — from wine refrigerators and pro-style kitchen appliances to built-in grills and fireplaces for their back patios. Small, lowmaintenance back yards with open space and great views are also big pluses for these buyers and can generate lot premiums for the developer, too.
Baltimore, Md.: 10-year tax credit for green certified market-rate rental housing citywide at the following rates: 80% in years 1-5, 70% year 6, 60% year 7, 50% year 8, 40% year 9, and 30% year 10. Hinesburg, Vt.: Homes that have green certification are eligible to receive a density bonus of up to 2% above the base residential density.
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Destinations such as New Mexico and Arizona are relatively disaster-free zones as well, which Blake anticipates may be a growing concern, given the impacts of wind and flooding in hurricane- and tornadoprone areas and boomer buyers’ desire for more low-maintenance housing as they age. Boomers working later in life and adult children more frequently living at home may also impact when and where 55+ buyers choose to retire.
Little Rock, Ark.: The Building Codes Division provides financial incentives for green building projects up to $1,500 per project to cover certification costs. North Carolina: The Housing Finance Agency Community Partners Loan Pool awards a $1,000 financial incentive to participating local governments and non-profits who obtain NGBS or LEED for Homes certification. Phoenix, Ariz.: The optional Phoenix Green Construction Code provides additional density to multifamily buildings that are five stories or higher that meet a minimum Energy Efficiency Performance that are built in specified areas. Volusia County, Fla.: County offers expedited permitting, public recognition, and rebate of 50% of application fees ($600 value) for several green home certifications. State Qualified Allocation Plan: More than 30 states mandate or incentivize green certification programs through their Qualified Allocation Plans for the federal Low Income Housing Tax Credit program.
The National Association of Counties’ (NACo) Annual Conference & Exposition in Las Vegas brings together county officials from across the country to advocate with a collective voice on national policy, exchange ideas and build new leadership skills, much in the same way that NAHB serves its builder and associate members.
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