Bismarck-Mandan Home Builders Association
BUILDING uzz B December 2017
2018 BMHBA ANNUAL DINNER JANUARY 25, 2018 page 5
Bismarck Recognized for Reducing Cityâ&#x20AC;&#x2122;s Flood Risks page 6
A Walk to Remember page 9
2018 Residential Educators Workshop at IBS page 13
BUILDING Buzz 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 October 2017 New Members
Drywall Design | Kristy Barker 701-471-5829 Exercise Equipment Center Dale Brown | 701-955-2617 Century 21 Morrison Realty - Melanie Pierson | Melanie Pierson | 701-400-2482 Michael K Construction | Michael Knodel 701-400-4147
Mountain State Financial Group Tanya Long | 701-471-1687 Guild Mortgage | Tracy Roberts 701-204-0537 RJR Maintenance & Management Jackie Fakler | 701-663-1736
Time to Renew! Members with October Anniversaries. Renew by December 31, 2017. Baymont Inn & Suites | Shannon Gangl www.bestwestern.com | Other
Bismarck-Mandan Chamber of Commerce Scott Meske| www.bismarckmandan.com | Trade Association/Non-Profit
C & L Roofing-Gutters-Siding | Curt Reeff www.clroofingnd.com | RemodelingResidential | Roofing/Siding/Sheet Metal Work Burleigh Co. Building/Planning/Zoning Ray Ziegler | Other
Choice Financial Insurance | Lynette Wohl Insurance or Title Company City of Bismarck | Galen Bren www.bismarck.org Trade Association/Non-Profit | Other
Comfort Zone Htg & AC, Inc. | Randy Mathern | www.comfortzone4u.com | Plumbing/Heating/Air Conditioning
Front Street Millwork & Lumber, Inc. | Chris Vigness | www.frontstreetmillwork.com Architecture | Building Materials Lumber (Retail Dealership) Glasser Images | Jack Glasser www.glasserimages.com | Computer Products and Services | Marketing/ advertising or Public Relations | Security Systems | Industry Consultant | Other
Innovative Basement Systems Jen Herbrandson | www. innovativebasementsystems.com | Other
LifeScape Homes | Todd Schmidt Single Family Spec/Tract Building | Single Family General Contracting
Building Buzz | December 2017
Luxury Baths & Beyond | Paul Barnum Single Family General Contracting | Remodeling-Residential | Building Materials Lumber (Retail Dealership)
Midwest Deck Company | David Williams www.midwestdeckcompany.com Nodak Construction | Kevin Turnbow Single Family Spec/Tract Building Single Family General Contracting
Odden Construction, LLC | Michael Odden www.oddenconstruction.com | Single Family General Contracting | Single Family Custom Building | Remodeling-Residential
Your membership is three-in-one: BMHBA, NDAB and NAHB
Professionals building our community through promotion of home ownership, education and legislation since 1958.
2017 Board of Directors PRESIDENT
Shannon Reichenberg Diversity Homes Phone: (701) 751-3999 email@example.com
1ST VICE PRESIDENT
Lynn Klein Gate City Bank Phone: (701) 355-7633 firstname.lastname@example.org
Greg Zenker Northern Plains Plumbing, Heating & Air Phone: (701) 222-2155 email@example.com
SECRETARY/TREASURER Susie Franklin Choice Financial Phone: (701) 751-7282
2ND VICE PRESIDENT
Chad Moldenhauer K&L Homes Inc. Phone: (701) 258-4584 firstname.lastname@example.org
Rory Anderson Verity Homes of Bismarck Phone:(701) 354-2846 email@example.com
Jeff Sattler Sattler Homes Phone: (701)255-7628 firstname.lastname@example.org
Bill Schmid Townsquare Media Phone: (701) 250-6602
Brian Eiseman Stoneshire Builders Phone: (701) 471-6935 email@example.com
Wade Vogel Premier Homes, Inc. Phone (701)226-1809 firstname.lastname@example.org
Marc Menge BNC National Bank Phone:(701) 250-3000 email@example.com
Organized Spaces of Minot | Amy Block Single Family Spec/Tract Building
Pinnacle Homes | Andrew Meldahl www.pinnaclehomesnd.com | Single Family Custom Building Real Deals on Home Decor | Rachel Miller
RiverBend Roofing and Exteriors Mike Hopfauf | Remodeling-Residential | Remodeling-Commercial | Roofing/Siding/ Sheet Metal Work Twin Cities Design, LLC | Doug Hanson Single Family General Contracting
BIANCO REALTY SALES AWARDS Bianco Realty has named SHIRLEY THOMAS and AMBER SANDNESS “REALTORS® of the Month”! Shirley and Amber had the most closed sales at Bianco Realty for the month of October 2017. Shirley has been a licensed REALTOR® since 2001 and Amber has been a licensed REALTOR® since 2010.
Your Home Improvement Company Mark Abramson www.yourhomeimprovementco.com Remodeling-Residential | Carpentry Work Shirley Thomas
Bismarck-Mandan Permit Reports
through October 31, 2017
December 2017 | Building Buzz
reetings BMHBA Members,
It’s hard for me to believe that this will be my final column as your president. It seems like just yesterday that I was writing my first column.
As we enter the holiday season and prepare for a new year, our association has a lot to be thankful for. This year we have seen an insurgence of builder participation that has not only been evident in our advocacy causes, but also our events. We had a very successful second Holiday Home Walk, where houses reported more than 300 spectators in just five hours. The houses were spruced up in their holiday best and by most accounts the spectators were pleased. I am also happy to report that thanks to our active membership our Home Show space is almost sold out as well. If you haven’t reserved your booth, you need to do it soon.
As we move toward the new year it’s important to note that we have elections coming up in 2018 and it has never been more important for our voices to be heard. We have made a lot of progress, but our work is far from done. With the everchanging codes and regulations that add cost to our product, it is very important that we have the right people in office. You may ask “How can I get involved and help?” My answer: contribute to PAC. I know firsthand just how important these funds are. With proper funds we can get behind and support candidates that will in turn support our industry.
Shannon Reichenberg Board President
As I stated earlier, it is hard for me to believe that the year is coming to an end. I can honestly say it is a bitter-sweet feeling. Bitter because it seems like the year has gone by way too fast and I really don’t want it to end yet, but sweet because I think we made big steps toward the goals that I started my year with. When I was sworn in I made a call out for “All Hands on Deck” and I have been super pleased with the response of the membership. We have witnessed members that hadn’t been involved as recent renew their commitment. We have also seen new members that have jumped in head first. I have had many members approach me and ask how they could get more involved. To all of you, I say thank you!
I am proud and humbled that I have been given the opportunity to serve the association that does so much to support the industry that supports all of us. I am proud of the board and want to say it has been a true privilege to work with so many talented people that truly have our association’s best interest always in mind. We also have a dynamic team at the office that consistently works tirelessly to bring fresh ideas and to make sure they are always fighting to make our association bigger, stronger and more efficient. Thanks also needs to go out to all of the many committee members who volunteer their time for our benefit, your work does not go unnoticed. I also would like to thank my employer Diversity Homes for being understanding with my schedule and also never saying no when I have asked for a sponsorship. Last but never least, I need to thank my wife Tina! It is true when they say that behind every good man, is an even better woman. I will soon hand over the helm to the very capable hands of Lynn Klein. I have had the privilege of working with Lynn the last few years and know that he has great ideas, a love for our industry and a strong desire to serve.
I hope to see you all at the Holiday mixer at the Elks on Dec. 5. I also want to personally invite you all to what I hope is our biggest annual dinner yet on Jan. 25, where we will celebrate our 2017 successes and inaugurate our new board members. I look forward to seeing you all soon.
Thank you and let me hear you say it all together…
Your President, Shannon Reichenberg
Building Buzz | December 2017
r u o Y t o N n i a t p a C Typical 2018 BMHBA Annual Dinner | January 25, 2018 Ahoy, matey! It’s All Hands on Deck for the 2018 BMHBA Annual Dinner, Jan. 25, 2018 at the Ramkota Hotel in Bismarck. Builders and Associates, Seadogs and Landlubbers are invited to a celebration of 2017 and a look ahead at the exciting year to come. As the galley serves up spirits and grub, Board members will walk the plank for their swearing-in. Joining the veterans will be Scallywags, Greg
Meidinger of Aspire Homes and Joe Hillerson of Boulder Homes. You’ll “yo-ho-ho” in your britches to the antics of our surprise guest.
If you’ve always wanted to be a pirate, but couldn’t quite get your ship together, don’t miss this chance to batten down the hatches with the best of ‘em. Register at BMHBA.com/events or call 222-2400. December 2017 | Building Buzz
CITY & COUNTY BULK WATER FILL NOT ACCEPTING CREDIT CARDS
BISMARCK RECOGNIZED FOR REDUCING CITY’S FLOOD RISKS
The credit card system for the Bismarck Public Works Bulk Water Fill Station is down until further notice. The Public Works Bulk Water Fill Station is available through a prepaid, key fob system. Requests to start a prepaid account (key fob system) can be made with John at Public Works between the hours of 9 a.m. and noon, Monday through Thursday.
CONTINUED IMPROVEMENT ACROSS THE COUNTRY By Danushka Nanayakkara-Skillington
A Nov. 14 “Business Incentives and North Area Opportunities” forum will highlight programs to assist new and expanding businesses in Mandan as well as developments along the interstate 94 corridor.
(left to right): Jenny Wollmuth, Carl Hokenstad, Gary Stockert, Darrel Nucech, Brady Blaskowski, Barbara Fitzpatrick, Dionne Haynes
Speakers will also provide updates about economic development tools, residential and business projects in north Mandan, available land and buildings, plus future roadway plans. Entrepreneurs, real estate agents and developers, commercial lenders, accountants and other business advisors are encouraged to attend.
The session will be held from 11:30 a.m. to 1 p.m. at the Starion Sports Complex, 111 Old Red Trail NE. Advance registration is requested by Nov. 10 online through www. cityofmandan. com/register or by calling 667-3485.
GATE CITY BANK ANNOUNCES CELEBRATORY CONTEST According to the NAHB/First American Leading Markets Index (LMI), 84 percent, 282 metropolitan statistical areas, recorded growth in their LMI Score over the third quarter of 2017. The index uses single-family housing permits, employment, and home prices to measure proximity to a normal economic and housing market. The Bismarck-Mandan, Fargo and Grand Forks metropolitan statistical areas (MSAs) are all in the top 20% of markets nationwide and exceed normal market condition by at least 119%.
ROLL OFF CONTAINER SERVICE 701-471-5650 FOR HOME, COMMERCIAL & CONSTRUCTION
Building Buzz | December 2017
Gate City Bank is celebrating the powerful and positive impact of their reusable blue bags. With over one million reusable blue bags donated since 2007, they are committed to creating cleaner, greener communities, and believe that it is their responsibility to make a difference in the communities they serve, For a Better Way of Life®. Over the past 10 years, they have helped save 700 million plastic bags from entering our environment. In recognition of reaching the milestone of one million reusable blue bags, Gate City Bank has announced a celebratory contest and significant donation to a local organization.
The public can enter to win up to $1,000, with more than $6,000 in total prizes. To enter to win, submit a story, photo or video of how you use your reusable blue bag. Gate City Bank invites members of the community to stop by any of their 36 locations to pick up a bag for themselves or a friend! For full details, please visit www.gatecitybank.com/bluebag or the Gate City Bank Facebook page.
CITY & COUNTY HFA AWARDS DEVELOPMENT ASSISTANCE
MANDAN SEEKS LETTERS OF INTEREST FOR TWO REMAINING CITY BOARDS
North Dakota’s most vulnerable households will benefit from affordable housing development assistance project awards made by North Dakota Housing Finance Agency (NDHFA).
The Mandan City Commission is in the process of considering appointments beginning in 2018 for open positions and seats up for re-appointment on various boards and committees. The Architectural Review Commission and Cemetery Advisory Committee are still seeking interested applicants.
Seven developers received funding commitments from NDHFA in November. The awards were made through three federal programs – $3.16 million in tax credit authority through the Low Income Housing Tax Credit (LIHTC) program, $2.72 million from the National Housing Trust Fund (HTF) and $460,000 from the Neighborhood Stabilization Program (NSP) – and $2.65 million from the state’s Housing Incentive Fund (HIF). Edwinton Place in Bismarck, a “Housing First” project spearheaded by Burleigh County Housing Authority, was awarded $813,000 in LIHTCs. NDHFA also made commitments of $1,026,147 from the HTF, $500,000 from HIF and $460,000 from NSP. It will provide permanent supportive housing for 40 individuals coming directly out of homelessness. Other projects awareded include: The Edge Artist Flats in Fargo, HomeField 2 Apartments in Fargo, Ellendale Apartments, Pure Downtown in Grand Forks, Dakota Heights in West Fargo, and Grace Garden in West Fargo.
“North Dakota Housing Finance Agency received 27 total applications for assistance from 14 projects during our fall 2017 funding rounds. The greatest demand was for support from the LIHTC and the HTF programs, more than twice what the programs could provide,” said Kline.
REDUCE YOUR TAX OBLIGATIONS
Members of the business community and residents are encouraged to submit a letter summarizing their desired appointment, background and reasons for interest. Letters will be welcomed until the positions are filled. Submit letters to Jim Neubauer, City Administrator, by e-mailing to firstname.lastname@example.org or mailing to 205 Second Avenue NW, Mandan, ND 58554. For more information, please call 667-3215.
Architectural Review Commission.
There are two openings for positions with a three-year term ending Dec. 31, 2020. Appointees, whenever possible, are to be residents of the city, business owners/ operators in the city, or owners of property within the city. Expertise in the design and construction industries or related professions is helpful. Architectural Review Commission consideration and approval is required before any commercial building is constructed or its exterior is altered. The commission also reviews requests for sign permits. Meetings are typically held the second and fourth Tuesday of each month at 1 p.m. at City Hall. A minimum 50 percent meeting attendance is required.
Cemetery Advisory Committee.
Two positions will be considered for appointment with terms from 2018 to 2020. Members must be Mandan residents living in city limits. The committee reviews Mandan Union Cemetery rules and help to generate ideas and implement improvements to the cemetery grounds. The committee meets as needed. For membership lists and descriptions for City of Mandan volunteer advisory positions, see the “Board and Committees” section under the “City Government” category on the City website at www.cityofmandan.com. Information is also available upon request at City Hall, 205 Second Avenue NW.
2017 TAX BROCHURE NOW AVAILABLE
Mandan had the fifth lowest property taxes among the 12 largest cities in 2016, according to N.D. League of Cities rankings. The City’s consolidated tax levy for 2017 is 264 mills, which is 1.32% of value for commercial property and 1.19% for residential property. The levy is down from 268 mills in 2016, 280 mills in 2015, 314 mills in 2014, 331 in 2013, 394 mills in 2012, 403 mills in 2011, 409 mills in 2010, and 414 mills in 2009. Download the 2017 property tax brochure online at https://goo.gl/FhZj6t. The brochure will be mailed out with December water bills and copies will be available at City Hall.
Consider making a contribution to the BMHBA before the year ends. Not only will you be able to use us as an expense, you’ll ensure the success of our industry. Contact Tracy at 222-2400 for options.
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.
701.223.6835 TheTitleTeam.com Montana | North Dakota | Minnesota December 2017 | Building Buzz
BMHBA NEWS FAREWELL BUILDERS SOCIAL
Thanksgiving came early for the HBA as we thanked outgoing President Shannon Reichenberg for his commitment at the final Builderâ&#x20AC;&#x2122;s Social of the year. Hosted by Northern Plains Plumbing, Heating & Air, Diversity Homes, and Premier Homes. Members gathered at Buffalo Commons Brewery in Mandan for a relaxing farewell soiree.
GET THEM BEFORE THEYâ&#x20AC;&#x2122;RE GONE
Shannon pioneered the Builders Only Socials in 2017 to unite builder members in a pressure-free environment to encourage collaboration and comradery . The event at Buffalo Commons marked the greatest participation, and a wonderful way to send off the HBA president. Thank you, Shannon for your efforts to bring builder members together, and thanks to all who attended!
BOARD MEMBERS ATTEND NDAB EVENT Greg Zenker and Jeff Sattler, current BMHBA board members, attended the North Dakota Association of Builders (NDAB) meetings held in Fargo last month. Both state directors, Sattler also serves as a NDAB-PAC trustee. The annual dinner included the induction of Dan Lindquist as the 2018 president and the departure of Eric Brenden as the 2017 president.
The 41st Annual Home Show presented will host over 200 vendors including home builders, subcontractors, suppliers, interior decorators, retailers and more. The event is nearly 90% full. Get your space now before its gone. The Home Show is Friday, Feb. 9 and Sat., Feb. 10, 2018 at the Bismarck Event Center. Visit BisManHomeshow.com for details.
Building Buzz | December 2017
GRASSROOTS CALL TO ACTION We need your help to tell lawmakers about the changes that should be made to the tax reform bill to support small businesses and middle-class home owners. NAHB has created sample letters that HBAs and members can use to contact their members of Congress. The letters are available at www.capitolconnect.com/ builderlink.
EVENTS A WALK TO REMEMBER
The holiday tradition continued with the 2nd Annual BMHBA Holiday Home Walk on Sunday, Nov. 19. The partnership was the perfect way to bring back the excitement of the Holiday Home Walk while showcasing the craftsmanship of BMHBA builders and remodelers. Eight builders participated in featuring 7 newly constructed homes and one remodeled home. The halls were decked, and mantels glistened with holiday decor. The BMYSO’s young musicians serenaded the crowds with festive music. Some kitchens were adorned with holiday treats and the smell of warm cider.
Thank you, builders and designers, for bringing your holiday cheer to Bismarck-Mandan. Aspire Homes, decorated by the BMSO; Diversity Homes, decorated by Design That Sells; Hopfauf Custom Homes, decorated by Interiors by France; K&L Homes, decorated by Marilyn Lauber of Horizon Bank; K&L Homes, decorated by Marilyn Lauber of Horizon Bank; Knutson Homes, decorated by Starion Bank; Stoneshire Builders, decorated by Stella’s; Verity Homes, decorated by Floor to Ceiling.
THINK SPRING...PARADE OF HOMES Get our Spring Parade of Home dates on your calendar now so you are prepared to showcase a house in this highly anticipated event. The Spring Parade of Homes is April 26-29, 2018. Bookmark www.BisManParade.com to stay on top of announcements as the dates approach.
A FAN FAVORITE RETURNS IN FEBRUARY
The Bismarck Event Center will be buzzing with over 200 vendors greeting consumers at the 41st Annual BMHBA Home Show. American Bank Center continues the tradition of offering free admission on Friday, February 9 and a day packed with excitement and prizes on Saturday. This family-friendly event features everything a home-owner needs, as well as a scavenger hunt for the kiddos.
Don’t miss your chance to connect with a homeowner looking for inspiration for their next project, major remodel, or new home by registering for your booth today! Visit bismanhomeshow.com to view a floor plan and book your premium space! Register these and all events at BMHBA.com/events, email email@example.com or call 701-222-2400.
KASPER JOINS BIANCO REALTY Bianco Realty is excited to announce the newest REALTOR® to join their professional Real Estate Team: BRADLEY KASPER. Brad looks forward to helping clients with their Real Estate needs, achieving their dream of home ownership and providing a Tradition of Excellence!
December 2017 | Building Buzz
FED LEAVES RATES UNCHANGED, CURRENT RANGE DEEMED “ACCOMMODATIVE” By Michael Neal
On Wednesday, Nov. 1, the Federal Open Markets Committee (“FOMC”) decided to leave its interest rate, the federal funds rate, unchanged at a range of 1.00 to 1.25 percent. Although the effects of the past hurricanes have reversed the longer trend in both employment and inflation, the hurricanes’ impacts are expected to fade and the longer-trend will reappear. In the face of current fundamental macroeconomic conditions, the FOMC judges that the current stance of monetary remains “accommodative”.
Consistent with its statutory mandate, the FOMC seeks to foster maximum employment and price stability. Nationwide, the Bureau of Labor Statistics reported that payroll employment fell by 33,000 in September. However, analysis of the state-level data identified the job declines in Florida as the primary driver of decrease reported nationwide. This suggests that the nationwide fall in the number of jobs was likely related to the hurricanes, an impact expected to temporary, and that the number of jobs around the country would have continued to rise if the number
of payroll jobs in the state of Florida had remained flat over the month of September. Despite the decline in payroll employment across the country, the unemployment rate remained low, falling to 4.2 percent and the labor force expanded, suggesting that the underlying labor market fundamentals remain in place.
Although the employment situation continues to improve, despite ephemeral shocks, price stability poses a concern. It is generally accepted that price stability means a 2 percent annual increase in the consumer price level. Although recent readings of CPI inflation have exceeded 2 percent, deeper analysis indicates that the current rate of inflation reflects the response of energy prices to the recent hurricanes, suggesting that the current rate is temporary and inflation will return to a sub-2 percent rate in the near future. Despite the sub-2 percent rate of inflation, the median FOMC member expects inflation to return 2 percent in the near future.
MARKET SHARE OF 5,000+ SQUARE FOOT HOMES DECLINES By Ashok Chaluvadi
3% of all new single-family construction during this period. The 3.1 percent share of 5,000+ square foot homes in 2016 is the lowest since 2012. A previous article discussed a recent, slight downward trend in the median and average size of new single-family homes evident in quarterly data and attributed this to an expansion in the entrysegment. The story concludes that home size is expected to trend lower.
Further analysis shows that 74% of 5,000+ square feet home started in 2016 have a finished basement, 65% have a 3 or more car garage, and at least 58% have a patio or porch. More than 50% of the homes have 5 bedrooms or more and 70% have 4 bathrooms or more. According to the Census Bureau’s Survey of Construction, the share of new homes started with 5,000 square feet or more of living space stood at 3.1% in 2016, down from 3.9 percent in 2015. The total number of 5,000+ square-foot homes started in absolute terms was 24,000, down from 28,000 in 2015.
In 2015, the number of 5,000+ square feet homes started was the highest since 2007, and their share of the new market was the highest since the inception of the series in 1999. In the boom year of 2006, 3.0% or 45,000 new homes started were 5,000 square feet or larger. In 2007, the share of new homes this size was 3.6%, yet the total number that year fell to 37,000. In 2008, only 20,000 such homes were started, or 3.2% of the total. From 2009 to 2012, the number of these large homes started, remained well under 20,000 a year and accounted for less than
Building Buzz | December 2017
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TAX AND MONETARY POLICY IMPACTS ON HOUSING Tax reform is the big debate in Washington, and the stakes are high. Certain components of the proposals would sideline and limit the mortgage interest and real estate tax deductions — two major factors in determining the costs and incentives of homeownership. Other elements of the proposals would provide reductions in small business and corporate tax rates and, due to NAHB advocacy efforts, protect the business interest deduction for real estate development firms.
Side-by-side, the Senate plan is much better for housing. It offers more generally favorable treatment for S Corps and LLCs due its rate schedule and more usable 17.4% pass-through business income deduction, while also protecting important affordable housing policies like the LIHTC and the tax-exempt bond program.
Change is also coming for monetary policy. Federal Reserve Governor Jerome Powell has been nominated to replace Federal Reserve Chair Janet Yellen, whose term ends in February. Powell is an excellent choice for the housing sector and will likely maintain the Fed’s current approach to monetary policy with gradual interest rate increases and balance sheet reductions. Given current market challenges — highlighted by recent reports concerning ongoing labor shortages, declining housing affordability and lagging single-family construction — tax reform and monetary policy should promote economic growth while recognizing the important role the housing industry plays in the overall economy. –NAHB Chief Economist Robert Dietz
RESIDENTIAL WATER USE By Paul Emrath, Ph.D. • Homes in states that are hot, dry and have large households tend to use more water.
NAHB then uses new and more detailed household level data from the WRF to show, among other things, that: • Almost exactly half of residential water use consists of water used outside the home (e.g., for watering lawns).
• Indoors, the biggest users of water are toilets, followed by showers, faucets, clothes washers and leaks.
• Although homes built before 1960 tend to use less water, possibly because they are less likely to have swimming pools. After that average water use varies only slightly among single-family homes of different vintages.
• Annual use of water in the U.S. is 355,000 million gallons per day. • Water delivered to residential customers accounts for over half of the water used by public supplies (like local water utilities).
• However, from a broader perspective, residential use accounts for less than 8 percent of the 355,000 million gallons of water used per day in the U.S.
• On average, a housing unit uses 260 gallons of water per day. • The amount of water used per home varies considerably from state to state.
The Water Research Foundation (WRF) has recently released data that complements the U.S. Department of the Interior’s standard water use estimates. NAHB cites the Department of the Interior’s latest aggregate estimates and combines them with
• Newer homes tend to have more toilets and showers, but statistical models fail to show this has any effect on the amount of water used. In fact, relatively few of the features that might be controllable by a home builder or developer have an impact on water use. • Instead, the statistical models show that the number and type of persons in the household and cost of water/ sewer service, are powerful drivers of water use.
• Among items that a builder or developer might install, the statistical models imply that newer homes tend to use more water because they are more likely to have water softener or filtration systems and in-ground sprinklers. • On the other hand, the newer homes tend to use less water because they have more efficient toilets and clothes washers, and are more likely to have hot water recirculating (on-demand) systems. Find the complete study at HousingEconomics.com
December 2017 | Building Buzz
TAX REFORM UPDATE
From left: Bill Ward and NAHB First Vice Chair Randy Noel meet with Rep. Steve Scalise (R-La). As the tax reform debate continues on Capitol Hill, NAHB has been fully engaged on this issue for months. Our efforts have been Federation-wide as we work to ensure lawmakers understand the industry’s priorities and the importance of housing to the nation’s economy. NAHB conducted a successful, targeted congressional flyin Nov. 14-15, bringing over 50 members and HBA executive officers to conduct nearly 150 meetings with key congressional offices. NAHB wanted to ensure that members of Congress met with their constituents to discuss the personal impact of their positions on tax reform. We are grateful to our members who, on very short notice, came to Washington, D.C. to take part in this grassroots action.
On Nov. 16, the House of Representatives passed H.R. 1, the Tax Cut and Jobs Act, to reform the tax code. The legislation passed with 227 votes; 13 Republicans opposed the legislation, most of whom were representatives from California, New York and New Jersey. Among other concerns, the House bill reduced
the mortgage interest deduction cap to $500,000 and eliminated private activity bonds (PABs), which are key to financing affordable housing development. NAHB key voted against the legislation. The Senate Finance Committee approved its version of Republican tax legislation, as amended, on 14-12 party line vote later that same day. NAHB believes the Senate bill is better for the housing sector, as it provides more meaningful tax relief to small businesses and restores PABs.
The Senate is expected to consider the legislation the week after Thanksgiving. At this point, the month of December is set aside for a House-Senate conference where NAHB anticipates additional changes and compromises. NAHB remains engaged and will fight for the interests of the housing community as the legislative process moves forward.
For more information regarding NAHB’s stance on tax reform and actions you can take, please contact a member of NAHB’s Government Affairs team or visit nahb.org/taxreform.
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Building Buzz | December 2017
It’s Not Just Business. It’s Personal.
Sales of newly built, single-family homes in September rose 18.9% to a seasonally adjusted annual rate of 667,000 units from an upwardly revised August reading, according to data from HUD and the Census Bureau. This is the highest sales rate since October 2007.
According permit data collected by the BismarckMandan Development Association, single family home permits in Bismarck, Mandan, Lincoln and Burleigh County are down 20% year-to-date with 355 issued through August 2017 and 446 through August in 2016.
OSHA’s New Silica Rule Now in Effect
Lots Are Smaller and More Expensive than Ever
Nationally, the median price of lots – $45,000 in 2016 – has never been higher. The median size of lots – 8,562 square feet – has never been smaller. Constraints on land availability are making affordability a challenge.
The average price of lots as listed on the BismarckMandan MLS was $136,549 in Bismarck and $69,685 in Mandan. The median lot price in Bismarck was $89,900 and in Mandan $44,990.
Hackers Are Targeting Real Estate Transactions
Treasury Withdraws Two Burdensome Regulations
The U.S. Treasury Department recently announced plans to withdraw two proposed regulations that NAHB has said would be costly and burdensome. One rule affects taxes on family businesses when an owner passes away. The other rule would have prohibited most development districts. Read NAHB’s full article on the withdrawn regulations online at https://goo.gl/ipLrZN.
The Residential Educators Workshop is designed for faculty members who teach construction management courses at colleges, universities, and high schools around the country. This open forum will facilitate discussions about Blueprint Reading and Estimating Activities and other hot topics. Date: Wednesday, January 10, 2018 Time: 9:00 AM - 11:00 AM Location: Orange County Convention Center, W105 A-B Coffee, juice and pastries will be served. Register for free online at https://goo.gl/6w8wth.
Young Professionals Networking Opportunity at IBS Stop by NAHB HQ, Booth #4842 for a mentoring session with a member from the Young Professionals Committee. Tuesday, January 9, 2018, 2:30-3:30 p.m. Discover more at buildersshow.com.
HBI Staff Update
HBI, the Home Builders Institute, the workforce development arm of NAHB, is pleased to announce several updates to their Development team.
Tracy MacMaster, most recently a Field Representative for Region E at NAHB, has joined the team at HBI in the role of Director of Business Development. In this role, MacMaster will be responsible for creating new program opportunities and expanding existing relationships with our local home builders associations, as well as funders and business partners. Her primary focus in the short term will be growing HBI’s portfolio of licensing and schools-based/CTE programs. MacMaster can be reached at firstname.lastname@example.org.
Email hackers are becoming increasingly devious, and more of them are targeting consumers involved in real estate transactions. NAHB offers tips for preventing fraud. Visit https://goo.gl/xCmqXW.
2018 RESIDENTIAL EDUCATORS WORKSHOP AT IBS
Full implementation of OSHA’s new silica rule went into effect Oct. 23, and the agency has issued additional “interim” enforcement guidance for regional OSHA administrators. NAHB has developed a Silica in Construction Toolkit to help members comply with the silica dust exposure restrictions. Find it at https://goo. gl/2LLBj4.
New Home Sales Pace in September Hits 10-Year High
HBI’s Business Development team is headed by Chief Development Officer David Howard and includes four additional team members all dedicated to trades training and program development: Steve Cousins, Director of Career & Technical Education; Mike Manigault, Director of Business Strategy; Mona Amra, Administrative Coordinator; and Tim Forest, Training & Technical Assistance Specialist. Please do not hesitate to reach out to any of the above staff at HBI with questions regarding construction/trades training, career placement, curriculum licensing, new program development.
December 2017 | Building Buzz
NDAB NEWS Monthly News from the North Dakota Association of Builders
Eric Brenden President
Eric Brenden, NDAB President
Kim Schneider, NDAB Chief Executive Officer
Thank You, 2017!
It has been a rewarding experience for me to serve as the 2017 NDAB president. I would like to thank the NDAB staff, the board of directors, and the entire membership for giving me the opportunity. As my term as NDAB President comes to an end, I would like to reflect a little bit on the events of the past year.
The year started, of course, with the legislative session taking up most of our attention. Much of the attention of the session was focused on the budget, so there weren’t too many bills brought forth that would have added additional regulation. However, we were able to defeat a few that were brought forward. Still, there is much work to do in the future. We must remain diligent in our efforts. It is important for us to remain active within our local, state, and national governments to support builder friendly legislation and oppose legislation or ordinances that will add unwarranted costs to houses. We will have important elections on all levels next year which will have ramifications for us all. We had some great events this year, from our Builder Day at the Capital and the Chili and Oyster feed early on to our summer meeting and Pac event in Williston, and of course our annual banquet in Fargo. It was also great to see the participation we had at IBS in Orlando and the legislative conference and meetings in DC. I would like to thank all of the committee members and the board of directors for all the time they have donated in the past year. The volunteers are really what make this organization. I would also like to thank our outgoing directors for the work they have done the last several years for NDAB. I know they will continue to be active within the association and serve in other ways. It was also great to work with Kim Schneider and the NDAB staff throughout the year. Having a great staff is critical as well, because they are the constants in our never ending rotation of directors and Senior Officers. Finally, I would like to welcome Dan Lindquist as the incoming President for 2018. I’m confident in his abilities to lead this association into the future, and look forward to working for our members in 2018 under his leadership.
December is a month full of emotions, full hearts and time to reflect on another year gone by. Another year of events, new friendships, and a new office! A big thank you to NDAB’s 2017 President, Eric Brenden for his leadership, his calm ways and for the many laughs we shared together. Eric was monumental with the 2017 legislative session and was always willing to be at the Capital to help provide a voice and be a strong advocate for NDAB and all of our members across the state. A special thank you to Eric’s wife, Tara and their children as well, for sharing his “free time” with us.
Kim Schneider CEO
On November 30th the NDAB Board of Directors and special guests gathered in Fargo to toast our successful past year and celebrate the future year ahead of us. 2017 NDAB President Eric Brenden was thanked for his past years’ service and pinned with NAHB’s Past State President pin. 2018 NDAB President Dan Lindquist was sworn in and pinned with NAHB’s State President pin. Our Board of Directors is made up of volunteers and we fully recognize and appreciate their time and dedication. To our outgoing board members, a heartfelt thank you. Your leadership helps push forth NDAB, NDAB-PAC and grow in our success. It has truly been a pleasure to work with you. The end of the year is also a time for us to recognize the success of our members with the local associations recognizing local award winners who then are recognized at the state level. Those who win at the state level are then nominated for North Dakota at the National level. State level winners were announced at the 2017 Annual Meeting and Awards Banquet. What an exciting year it has been! As 2017 goes down in the record books we look forward to making new memories in 2018. Sponsorship opportunities will soon roll out, education opportunities will be offered, memberships will grow and in the end, new friendships will be made. Thank you all for making NDAB one of the best state-wide Associations in the Nation! 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 email@example.com to contribute or learn more! North Dakota Association of Builders ❖1701 Burnt Boat Drive, Suite 201, Bismarck, ND 58503-0801 ❖701/222-2401 or 800/326-4746 ❖www.ndbuild.com
Building Buzz | December 2017
AROUND THE STATE Around the State
Secretary/Treasurer, Rob Johnson, of J&J Construction, came out on top with the 1st place win! The FBA would like to Tiffaney Dolechek, Executive Officer Bismarck/Mandan HBAtofor a Decorating Services, Top Recruiter; Ken all winners! congratulate A big THANK YOU alldonating our sponsors 701-483-0044 | dickinsonareabuilders.com for our Executive! Krajsa, Bell State Bank & Trust, Top and everyone who camecomputer out to enjoy thenew day! Dot Frank, Executive Officer Spike; George • The DABA Annual Christmas bmhba.com Party and Awards Banquet is Fraza, Blue Cross Blue Home and show booths are being sold now! 701-222-2400 • TheKen FBAKrajsa Builder After Hours Christmas Party will be on of ND, Top New Spike; December 15th at the Elks! We are doing a SilentShield Auction January 8th is the deadline for our Cornerstone Award. HBC granted $12,500 December 12th at Keith’s Security World.Home We would to 15 preferred vendors. show love is April this yearhas with thebusy proceeds going to two local non again The BMHBA been following in scholarships to local high school see all members come enjoy a night full of food, beverages, and – 17, 2016 ordinance updates inthe Bismarck and Backpack Program profit organizations Dickinson andand college students in or students contact Jackie@willistonbuilders.com for networking! Mandan, Burleigh andRescue. Morton Counties. Bakken Paws Animal We have three exciting items
Dickinson Area Builders Assoc
planning on enrolling in the construction
areyear’s reviewing and updating dated Johnny Cash programs. inAll this auction an autographed Record codes. Eyes are currently on permit cost of Builders Our December General Membership Association Album, autographed Sheet Music by the Eagles, and Thean HBA of F-M heldMinot a PAC Social with changes and development standards. meeting will be held on the 17th Elysha Head, Executive Officer autographed photo of John McCartney! special guest Jerry Howard to talk about A housing analysis conducted by Bismarck issues NAHB is working on in D.C. and| minotab.com 701-852-0496 and Mandan outlines a need an meeting and events • We are starting to plan next for year’s and how they tie in locally. The event was a Thank you so much our Annual additional 7,786 owner-occupied homes are looking forward to some new changes and ideas! • The Builders Banquet is coming up on to December 5th at the success with 75 members in attendance. Banquet Sponsors! Your support by 2030. The HBA is working on a task Grand Hotel in Minot. At the Builders Banquet, MAB will Just under 20 members attended a Lunch • The 2018 Home Show is scheduled for April 7th & 8th. We force to explore implementation of the helped uspresent to put all on of a great event! We celebrate the industry and 2017’s awards and Session with local building officials to talk study’s are fillingrecommendations. up vendor spaces and planning some exciting new had aspectacular great crowd and City a funManager, eveningTom honors together at one event! about the latest issues in residential things! Members elected a new Builder board celebrating the year end and construction. Barry will be the keynote speaker and City Councilman Shaun member at the Fall GMM on Nov. 24 to fill recognizing all our amazing Award Sipma will emcee. The New Year Celebration & City Night is President Vance Vetter’s seat. The winners. We are already looking HomePast Builders Assoc. of Fargo-Moorhead on Jan. 28 at the Radisson in Fargo. 2016 board of directors will be sworn in at forward to doing again nextLearning year • On December 13th, MAB will offer ita all Lunch Hour Bryce the Johnson, Executive Officer Mayors from Fargo, Moorhead, West Annual Chief Banquet on Jan. 14. in Bismarck! class Trends for 55+ Housing in 2018. Fargo, Dilworth & Oxbow will be entitled18 in 701-232-5846 | hbafm.com The BMHBA welcomes all members to attendance and participate on a mayoral • MAB is planning a PAC event for 2018 and looking forward to attend Lead and Lead panel. We will also have special guest Al • The HBAa of F-MRenovator Awards Gala & Annual Meeting was packed raising money for NDAB-PAC! Renovator Initial and Refresher course Jaeger, Secretary of State. If you would with on Nov. 30 and Dec. 1, respectively. like to attend, please visit the events • Booth sales for the 2018 Home and Garden Show have started. Visit190 bmhba.com/events to register. Congratulations calendar at www.hbafm.com. • over members in attendance. to award MAB offered an Early Bird discount that helped vendors sign winners: Associate of the Year Winner John Forx Builders Association Dickinson Area Builders Assoc. up more quickly this year. MAB is excited for a new home show Platinum Builders, Irene Schafer, Executive Officer layout and once again addingSponsors—Kuntz a fresh feel to the show! McDonald, Executive Officer • Koerselman, Red River Drywall & DecoratingBetty Services; Inc. and Winn Construction, Inc. 701-483-0044 dickinsonareabuilders.com 701-746-4536 forxbuilders.com Builder of the Year Winner John Gunkelman, Dakota Williston Area Builders of Fargo, Inc.;atBEAM Winner Dakota Construction Our regular GMM was held the Eagles SilverAssociation Sponsor—ProBuild There was good attendance at Slate Jamie Montgomery, Executive Officer Club on November 11 with moment of Builders Care Construction of Fargo, Inc.;aand Home Interior Design’s November Builders after silence honoring our veterans. 701-572-5744 | willistonbuilders.com NDAB-PAC Reception Sponsor—Bosch Volunteer of the Year Winners Dan Parrow, ISR Homes, and you Alissa. Hours. Thank Monica Our Home Show committee is busy Design. Lumber Co. Hart, Monica Hart Interior The December Builders • after be In Hours early will October, WABA delivered a proposal to the City of planning our Home Show in April, hosted by the MembershipWilliston Committeetoand assist the City with recent changes in the Building • $14,000 scholarships awarded to studentsthe from Home updatinginand adding newwas features. Banner Sponsor—Roers West, LLC Board of Directors at Keith’s Security The proposal served as a starting point to help Care ofright Fargo-Moorhead Foundation. World. Jim Bisson owner ofDepartment. Builders Our main focus now is on Keith’s Lock & foster a more collaborative relationship between the City and Key will be retiring the end of December the State Meeting here in Dickinson. We • HBC F-M Foundation hosted a aCurling for Construction builders. was very receptive to the proposal and and we will be helping him the celebrate this The City are of looking forward to making this Also, Thank you to the NDAB 2015 City AdministratorPartners! David Tuan the October General event in early November. Members how milestone. to curl, while special night for Arnold Karsky as he learned is Wespoke trulyat appreciate your as our State President. Membership about in theserving Building allinstalled proceeds went to the charity. Our Home Design and Garden Show will meeting support andthe we changes have enjoyed and the collaboration Following that, we also busy planning our be held April 1, 2 & 3 at theDepartment Alerus Center. you throughoutwith the WABA. entire year! • The HBA of F-M hosted local legislators at its Holiday annual Christmas Party. Newly elected • In June, WABA announced the start of the sub-chapter, Minot Association of Builders Legislative Social Nov. 16. Vice President, Val Voelkering is busy with McKenzie County Builders Association. MCBA established Executive Officer her committee putting final touches to a • The New Yearevening Celebration & City Night will be Jan. 25. This their board of directors and held their first BOD meeting in very special at the Elks Club. 701-852-0496 minotab.com allows members to stay in touch with local officials as September. The new chapter is very excited to get started event We would like to take this opportunity to well as update to from Mayors. We are having a “Holiday Open House” for and actively recruiting new members. Also in June, the NDAB extendhear an invitation Kimarea and Heather our members here at the office December Board approved a waiver of state dues for MCBA members and other associations to attend our 15th from noon-7pm with food Christmas party. Gold 30, Partner Montana Dakota fromand July 1, 2017-June 2018,- to allow WABA theUtilities funds to Forx Builders Association beverage. promote the new sub-chapter. This additional benefit has seen Merry Christmas and Happy New Year to Cassie Thompson, Executive Officer Silver Partners - of Bismarck-Mandan everyone! | forxbuilders.com an increase in MCBA membership 27% since June, while Williston Area Builders Association 701-746-4536 Builders retention rate.Association, Dickinson Janna Lutz, Executive Officer maintaining a 95%Home Area Builders Association, Home Builders • The FBA hosted its 3rd Annual Chili Cook-Off701-572-5744 and 1st Annual willistonbuilders.com • UpcomingMeetings/Programs: Bryce Johnson, Executive Vice President Association of Fargo-Moorhead, & Bean Bag Toss Tournament on October 14th. The Chili Cook6 701-232-584 oboard November 21, 2017 – Annual Awards & Membership Meeting Northern Plumbing Supply Off consisted of 14 different hbafm.com chilies! It was a tough decision, WABA welcomes new incoming members: Lance Bevier of Tractor and but Bill Knipe, of Circle K Builders, took home 1st place and o December 19, 2017 – Legislative Social Thank you to everyone who attended our Bronze Partners - Bell State Bank & Equipment the People’s Choice Award. The Bean Bag Tournament was aCo., Joan Mainwaring of Awards Gala & Annual Meeting. The HBA oCo., January 2018 –Forx General Membership Meeting American State Bank and Trust and 16, Trust, Builders Association, Minot hit. The tournament had 14 teams and it was a battle to the of F-M celebrated award winners and Bob Radermacher of Bakken Contracting. Association of Builders, ND Guaranty & end. Vice President, Keith Waters, and scholarship recipients withOstlund, over 200 of of Premium its Mark Schneider, LJA, was sworn in as our Title Co., ND Housing Finance Agency, members. The awards went to Clay incoming WABA President at our Annual ProBuild, RDO Equipment Co., & Williston Dietrich, Dietrich Homes, Inc., Builder of Meeting in November. Area Builders Association 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 &
Top Spikes were also recognized: Bill Murphy and Dave Nordenstrom became Life Spikes in 2015! Special thanks to Dot Frank and the
North Dakota Association of Builders
December 2015 December 2017 | Building Buzz
PRSRT STD U.S. Postage
PAID 2600 Gateway Ave., Ste. 1 Bismarck, ND 58503
UPCOMING BMHBA EVENTS BMHBA Annual Banquet - Jan. 25, 2018 5:30 PM - 8:30 PM 41st Annual Home Show - Feb. 9, 2018 - Feb. 10, 2018 2018 Spring Parade of Homes - April 26 - April 29, 2018
Permit #72 Bismarck, ND 58501
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