Bismarck-Mandan Home Builders Association
BUILDING uzz B December 2016
BOOST LEADS USING YOUR WEBSITE page 9
2017 Color of the Year page 5
Mandan Downtown Subarea Study page 6
Holiday Home Walk
page 8
Flawed WOTUS Rule page 10
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 Like Us! www.facebook.com/bmhba Follow Us! www.twitter.com/bmhba
Publisher/Editor: Dot Frank Layout Editor: Michael L. Quinn Contributor: Tracy DeForest
New Members & Anniversaries October 2016 New Members BisManOnline.com | Stephen Schnaible www.bismanonline.com Computer Products and Services
Century 21 Landmark - Charlotte Erickson www.century21landmarkrealty.com | Real Estate MSM Realty, Inc. - Lori Peter Real Estate | Land Development
Next 2 Nature Landscape Company | Jared Winters www.Next2NatureND.com | Landscaping
Nordaas American Homes | Jeff Hicks www.nordaashomes.com | Single Family Custom Building Northern Stone, Inc. | Jared Woll
Time to Renew! Members with December Anniversaries. Renew by December 31, 2016.
Your membership is three-in-one: BMHBA, NDAB and NAHB
Professionals building our community through promotion of home ownership, education and legislation since 1958.
2016 Board of Directors PRESIDENT Greg Zenker Northern Plains Plumbing, Heating & Air Phone: (701) 222-2155 1ST VICE PRESIDENT Shannon Reichenberg Diversity Homes Phone: (701) 220-8177 2ND VICE PRESIDENT Lynn Klein Gate City Bank Phone: (701) 355-7633 Nathan Jones Tollberg Homes Phone: (763) 205-2037 Wade Vogel Premier Homes, Inc. Phone: (701) 226-1809 Brian Eiseman Stoneshire Builders Phone: (701) 471-6935
PAST PRESIDENT Drew Knutson Knutson Homes, Inc. Phone: (701) 258-3464
SECRETARY/TREASURER Susie Franklin Choice Financial Phone: (701) 250-1904 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
C & L Roofing-Gutters-Siding | Curt Reeff | www.clroofingnd.com Glasser Images | Jack Glasser | www.glasserimages.com
Kahm Construction | Eric Kahm | www.kahmconstruction.com Midwest Manufacturing | Eric Proden Nodak Construction| Kevin Turnbow
Open Road Honda | Annette Behm-Caldwell | OpenRoad-Honda.com Probuild | Keith Doerr | www.probuild.com
Verity Homes of Bismarck - Rory Anderson | www.verityhomes.com The Window & Door Store | Jayden Chuppe | www.thewdstore.com
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Building Buzz | December 2016
STEIDLER JOINS BIANCO REALTY Bianco Realty is excited to announce the newest REALTOR® to join their professional Real Estate Team: CANDI STEIDLER. Candi look forward to helping clients with their Real Estate needs, achieving their dream of home ownership and providing a Tradition of Excellence!
Candi Steidler
Bismarck-Mandan Permit Reports
through October 31, 2016
BISMARCK PERMITS 700
MANDAN PERMITS 400
615
600
541 532
484
500
200
240
0
152
150
200
132
86
102
2010
2011
100
100 50
2012
2013
2014
2015
0
2016
80
2011
2012
52
2013
2014
2015
2016
Bismarck Multi-Family Units
Mandan Single Family
Mandan Multi-Family Units
Linear (Bismarck Single Family)
Linear (Bismarck Multi-Family Units)
Linear (Mandan Single Family)
Linear (Mandan Multi-Family Units)
COUNTY PERMITS
76
60
70
70
54
50
36
20
20
10 0
2010
2011
2012
2013
Lincoln Single Family
Bismarck +111%
2
0
0
2014
2015
46
37
30
35
30
0
50
40
42
40
55
50
62
60
350
74
2 2010
LINCOLN PERMITS
0
137 116
132
121 80
Bismarck Single Family
80
10
303
277
250 312
297 295
300
319
300
400
400
357
350
519 484
24 12
10
0
2010
2011
2016
Lincoln Multi-Family Units
2012
2013
2014
2015
Burleigh County
Morton County
Linear (Burleigh County)
Linear (Morton County)
2016
YEAR OVER YEAR COMPARISON OF PERMITS THROUGH OCTOBER 31, 2016 312
300
280
250
200
Mandan - 7%
150
125 116
Lincoln – 41%
100 66 52
50
0
0
9
2122 34
46 43 40 31 31
Burleigh Co. -2% 59
54 48 44
1620
18 020003
Bismarck Single Family J15
4746
35
28 14
2
12
8 21605 233
17 10
1012
Lincoln Single Family J16
Morton Co. -3%
F15
F16
M15
M16
A15
29 26 2120 17 1614 11 1412 13 9 9 13 7 6
7 754794775747 011034 4
Mandan Single Family A16
M15
M16
J15
J16
J15
3332 0101
Burleigh County Single Family J16
A15
A16
S15
S16
O15
O16
6571
7 11
4445124200
Morton County Single Family 2015
2016
December 2016 | Building Buzz
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President’s Letter
G
reetings BMHBA members,
WOW how time flies! Am I really writing my last President’s Column? As Dot would say, “Yes, now hurry up and get it done.”
2016 is almost behind us and we can safely say that we had a strong construction season. If you look at the permit numbers for our area and the amount of permit valuations, we are only xxx compared to 2015. Our industry has a huge impact on the local economy and we should be very proud that.
We had our first of many Holiday Home Walks, to benefit the Bismarck-Mandan Symphony Youth Orchestra. Eight homes were featured for the first time the BMHBA put it on, which is a great start. We were very lucky and had great weather; unlike the snow storm we’re enduring as I write this. I am happy that we have events like this, where we can give back to the wonderful Bismarck-Mandan community that we call home. So, what are we working on for 2017?
1. We are fully vested with the City of Bismarck on infrastructure needs and how to finance them.
2. We will continue to work with local building inspection departments to help make the homes that we build affordable.
Greg Zenker Board President
3. We are in discussions with Mandan and Morton County on their new planning and zoning requirements.
4. Our 2017 Home Show in February 17-18. This will be a big opportunity to find those home owners for the 2017 construction season and showcase the many services our members offer.
As you can see 2017 will be a very busy year.
I would like to thank Dot, Terri and Tracy for their hard work and dedication to the BMHBA. The three of you truly do make my job a lot easier, the positive attitude and energy you bring each day make our association rise above the rest! I will hand off the role of President to Shannon Reichenberg. Shannon is a tremendous person with great passion for our Association. I wish Shannon the best as your 2017 BMHBA President.
Your President, Greg Zenker
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Building Buzz | December 2016
I
NEWEST ‘COLOR OF THE YEAR’ GOES DEEP
f Benjamin Moore was trying to spice things up with its latest Color of the Year winner—following last year’s shoulder-shrugging honoree, Simply White— it succeeded by selecting Shadow as the “it” color of 2017.
• “I love this new color of the year. Deep hues have an immediate impact on the “richness” of a space. They are bold, dramatic and provide a stunning wow factor. Shadow could also provide an effective backdrop to really showcase the furnishings within a particular room of the home.” —Laura K. Sullivan, Allied ASID, CAPS, CGP. principal of ID.ology Interior Design in Asheville, N.C.
This deep shade of purple might not be for everyone, but it’s undeniably a statement maker that can be effective…if used in the right space.
To gather some expert opinions, NAHBNow asked three members of NAHB’s Design Committee for their thoughts on the matter. Here’s what they said:
• “I can absolutely jump on the bandwagon for Shadow. Unlike Pantone’s 2014 choice of Orchid, Shadow has depth, versatility and a regal presence. Navy has been a favorite “neutral” for quite some time, but I think Shadow could soon take its place in popularity. Combining it with Marigold, Coral and Sea Grass Green would evoke exotic lands and cultures.” —Mary DeWalt, MIRM, CMP, president of Mary DeWalt Design Group in Austin, Texas
• “Using a dark wall color in large doses is risky. Such colors reflect less light and tend to make buyers feel closedin. Buyers want a home to look and feel light, bright and fresh. However, a mysterious and exotic color such as Shadow can have a big impact if used in small doses. A sunroom for example has limited wall space, yet the abundant light would bring the color to life.” — Joan Inglis, ASPM, founder and owner of Carolina Spaces, LLC in Lake Wylie, S.C.
As a general word of caution, design experts agree that those who look online for trendy color choices should do so only for inspiration. Every space of a room has unique features and varying amounts of light. It’s always best to test small amounts of several colors you are considering before investing time and money into larger quantities of potentially the wrong shade.
Check in often with the Best in American Living for more of the latest in home design. A wide variety of trends in new homes, kitchens and baths will also be unveiled during the upcoming International Builders’ Show in Orlando, Jan. 10-12.
Former Junior High School May See New Life The Commonwealth Companies of Fond Du Lac, Wisconsin, are proposing to invest approximately $8.3 million into renovation of the former Mandan junior high school for 39 units of affordable housing. Commonwealth is planning to buy the property from Mother Teresa Outreach, LLC, an affiliate of Spirit of Life Catholic Church, Mandan. The purchase and rehabilitation project is pending on approval of an application to the N.D. Housing Finance Agency for the Low Income Housing Tax Credit Program. The building was sold by the Mandan School District in August 2012 to GPA, LLC, led by Yegen Development, Grand Forks. Yegen attempted a redevelopment project, but after bids came in high, deemed the project infeasible and donated the property to the church.
December 2016 | Building Buzz
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CITY & COUNTY Growing Our Future Workforce Through Local Programs
Downtown Subarea Study Scheduled for 2017
Bismarck Public Schools and Bismarck State College have a long-standing tradition of offering esteemed carpentry programs for local students, and as the programs grow, more students are eager to learn life-long skills.
The Residential Carpentry Program at BSC under the direction of Earl Torgerson, guides students through the complete construction of a single-family home. Areas of study include methods and principles of building construction, construction math, blueprint reading, sustainable/green building, energy efficient building, materials, cabinetry, and drywall. Enrolment is currently 15 students: 13 males and 2 females. At the Bismarck Public School Career and Technical Center. Dave Peterson, Framing and Interior Carpentry Instructor, guides students in building a home on site. Enrollment for the secondary program is currently 36 students: 12 seniors, 9 juniors, and 15 sophomores from area high schools.
Typically, the home has been constructed on site and then relocated after it is sold, but the Career Advisory Committee is exploring the construction of the 2017-2018 home on a residential lot. The BPS Carpentry Program will be calling out to contractors who are interested in partnering with the program through issuance of an RFP. Please keep your eyes peeled for future messages from the BMHBA regarding this RFP, as our members will be crucial in pioneering this partnership.
The BMHBA has made promoting these programs a priority by working closely with educators, local businesses, and by managing a BSC Scholarship Fund, which awards three $1000 scholarships annually to BSC students. We urge our members to help fill the labor void in the residential housing industry by supporting our local carpentry programs. In addition to job shadowing and mentoring opportunities, monetary donations can be made directly to the BSC Foundation. The BSC Foundation is still accepting donations that qualify eligible business expenses to offset your taxes for the current year. Please contact Tracy at 222-2400 for more details.
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Building Buzz | December 2016
T
he City of Mandan is working with the Metropolitan Planning Organization to complete the Downtown Subarea Study in 2017. The goal of the study is to develop a transportation and urban design vision for Mandan’s downtown and Main Street corridor that is true to the community’s family-oriented rural character and will further renew the downtown area into a more vibrant place where people want to live, work and be entertained. The study will provide a phased implementation strategy that includes recommendations to improve all modes of transportation in Mandan’s core area and along Main Street, with emphasis on the correlation between pedestrian and vehicular traffic. Recommendations also will focus on reducing conflict delays.
The study will consider opportunities for improved parking and pedestrian crossings and aim to provide a more inviting atmosphere and create opportunities for commerce.
The study focuses on an area between Highway 6 and Mandan Avenue from Main Street to Second Street. As envisioned, it will be a blueprint for future activities and programs that will enhance and strengthen the core of Mandan and help this area realize its full potential. Three public information meetings will be held with the first meeting expected in early 2017.
CITY & COUNTY BISMARCK SCHOOLS OUTLINES BUILDING PLANS At the Nov. 28 school board meeting, principals outlined plans for increasing middle and high school space due to increased student enrollment in Bismarck Public Schools. Simle Middle School, built for 850, has more than 1,000 students. The plan would be to add classroom, science lab, and Physical Education (P.E.) space to the east side of the school where the district owns a couple of apartment buildings. Simle’s entrance would also be moved to the east to improve traffic flow. Wachter, built for 900 students, is projected to be at 1,100 in a few years. Wachter proposes to add some space to all sides of the building, including music space to the west, improved safety and handicapped accessibility in the office area to the south, more P.E. space to the east, and two classroom wings in a two-story addition to the north. Wachter would renovate the counseling area for a science lab and English Learner room, and move counselors to another school space.
Horizon Middle School expects 1,040 students next year and has a capacity of 900. Improvements would be to make the office area more secure when visitors come in, a classroom addition to the west, and music and P.E. space to the east.
Bismarck High proposes adding a gym court, locker rooms P.E. classrooms and a theatre to the north of the school, while retaining most of the green space in that area. BHS is the only Class A high school in North Dakota without its own auditorium for use as instructional space, concerts, plays, speakers, and other activities. Century High has a capacity for 1,200 because it currently has six portable classrooms. CHS is projected to be at 1,540 students in five years. To become a 1,600-student campus, Century would like to move the office area to enlarge the cafeteria/commons and kitchen space.
The student locker bay would become the office area and main entry to the school. Improvements would be made to the Family and Consumer Science area for better accessibility, ventilation, and power needs. Student and staff collaboration space would be created in existing classroom wings, where the student lockers would also be relocated. New classrooms would be added to the east, including space for the school’s music program. Some physical education space and P.E. lockers would also be included.
Board president Matt Sagsveen says the principals did an excellent job identifying the core needs in each middle and high school plan presented. The combined cost is $57.5 million. The Board asked for information about how the projects would be financed, as some old bonds are coming off the tax rolls over the next few years, which could pay for the projects without raising mills. That discussion will take place at the Board’s Dec. 12 meeting.
December 2016 | Building Buzz
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BMHBA NEWS THE HOLIDAY HOME WALK - REVIVING OLD TRADITIONS
T
he Bismarck-Mandan Symphony Orchestra Holiday Home Walk returned from a two-year hiatus, bringing with it the sights and sounds of the holidays, as well as a new partnership with the BMHBA.
The event was created by the BMSO to feature area homes decorated for the holidays, while benefitting the BismarckMandan Youth Symphony Orchestra. Previously organized by the BismarckMandan Symphony League, the event had fizzled out due to a combination of retiring League members and lack of commitment form homeowners. BMHBA’s Dot Frank knew that the historic Home Walk and it’s philanthropic intentions did not need to fall off the map. She approached BMSO Executive Director Toni Neslen to see if the BMHBA could help to revive the event.
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. Seven 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.
The resurrection of the Holiday Home Walk was well received. Tickets were $10 in advance and $15 at the door. Proceeds from tickets sales will be used to purchase instruments for the youth orchestra, ensuring the future of the program. Next year, the tradition will continue with what the BMHBA and BMSO hopes will be an even bigger holiday extravaganza!
The event was made possible through generous donations from our sponsors. Thank you Century 21 Landmark- Amy Hullet, Armor Interactive, 1st International Bank & Trust, and K & L Homes.
THE FUTURE OF ND’S POPULATION & HOUSING
Executive Order Prohibits Sales Members should be aware that any sales or deliveries to the area where protesters are illegally occupying Army Corps of Engineers land are subject to penalties in law. According to Executive Order 2016-08, “Any action or inaction taken by any party which encourages persons to enter, reenter or remain in the evacuation area will be subject to penalties as defined in law.”
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Building Buzz | December 2016
TECHNOLOGY USE YOUR WEBSITE TO BOOST LEADS IN 3 SIMPLE STEPS
T
oday, most home builders and remodelers use a website and/or social media to promote products and services. Often, a website is the first impression a consumer will receive, so it is critically important to make sure that it is set up to offer the best return on investment.
One reason some websites don’t generate as many leads as expected is that they don’t offer enough contact information, says Spencer Powell, an inbound marketing director at TMR Direct, in Colorado Springs, Colo. For example, there may be a Contact Us page (with a form) and a phone number on the website but that may not be enough. In fact, Powell suggests, there should always be other ways for a visitor to submit contact information, or reach out to you.
Once that information is captured, your company can follow up via email to see if the visitor needs help finding additional information, has any questions about the process and you can add them to a database of interested prospects.
There are many ways to attract, capture and convert leads using a well-designed website. • Offer an interesting or useful e-book, guide or checklist, like a Home Buyer’s Guide, Design Guide or something similar.
• Create a page that summarizes the guide that includes a form the visitor must fill out in order to receive the free material. The form should request the visitors name, email, phone and zip code. • Place the graphic/icon/button pointing to the free material in a prominent place where visitors can easily find it. • Consider putting the form in places where other consumer education is offered (e.g., maintenance tips), and where they might reach out for additional information.
A prospect will only click around so much before moving on to another website. That’s why it’s important to make every effort to capture website visitors before they leave. One way to do this is by providing free content like home buying or home improvement how-to guides, educational webinars, apps or other useful, tangible content–in exchange for contact information.
December 2016 | Building Buzz
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NATIONAL NEWS
NAHB CHAIRMAN ED BRADY TESTIFIES BEFORE CONGRESS ON APPRAISAL PROCESS “The current appraisal system is impaired due to inconsistent and conflicting standards and guidance, inadequate and uneven oversight and enforcement, a shortage of qualified and experienced appraisers and the absence of a robust and standardized data system.”
This is the message that NAHB Chairman Ed Brady sent to Congress Nov. 16 while testifying before the House Financial Services Committee’s Subcommittee on Housing and Insurance during a hearing on modernizing appraisals. Major reforms in appraisal practices and oversight are needed to ensure that appraisals accurately reflect true market values and do not contribute to price volatility, he added.
NATIONAL NEWS
NAHB believes in standardizing appraisal requirements throughout the housing finance system so all parties are operating under the same set of rules.
To improve the quality of valuations, NAHB told the committee it is necessary to strengthen education, training and experience requirements for appraisers of new home construction, particularly as it relates to energy-efficient, green building and other evolving new construction techniques.
NAHB Chairman Ed Brady (second from right) prepares to speak to members of the congressional committee.
This is the biggest flaw in the current appraisal process: Buyers, sellers, builders and real estate agents can be held hostage by the current inability to promptly address legitimate questions on a valuation.
Brady also called for development of a standard process to expedite appeals of inaccurate or faulty appraisals.
NAHB CHALLENGES FLAWED WOTUS RULE NAHB and its industry partners presented their first brief to the U.S. Court of Appeals for the Sixth Circuit that challenges the Waters of the U.S. rule.
NATIONAL NEWS
“The Sixth Circuit issued a nationwide stay of the Waters of the U.S. rule because it is deeply flawed, arbitrarily written, and provides no clarity or certainty to members of the regulated community,” said NAHB Chairman Ed Brady in a press statement.
“It could be more than a year before we get a final decision. Therefore, Congress must act now to prevent this rule from moving forward,” Brady said.
“The brief hammered home those points and several others: The water rule does not conform to Congress’s intent or Supreme Court precedent and is not supported by scientific evidence. Further, the EPA deprived the public of a meaningful opportunity to comment on critical aspects of the rule and the agency violated the law by conducting grassroots lobbying. “Meanwhile, two reports from Congress, one released just last week, corroborate these facts and highlight that the rule was politically motivated and based on flawed scientific analysis. While there is a high likelihood that the EPA’s water rule is illegal, builders face an increasing backlog in obtaining federal permits. In turn, these bureaucratic delays increase project costs and harm housing affordability.
Graphic courtesy of the U.S. Chamber of Commerce.
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Building Buzz | December 2016
NATIONAL NEWS
ECONOMIC IMPACT OF TRUMP’S VICTORY NAHB Chief Economist Robert Dietz
President-elect Donald Trump will undoubtedly have a profound and lasting impact on economic policy throughout his presidency. Costly business regulations are likely to be reduced or rolled back; rate-reducing, basebroadening, comprehensive tax reform will be under active consideration; and the leadership of the Federal Reserve will change in 2018.
The nation’s low unemployment is placing pressure on the Federal Reserve to raise short-term interest rates, and those rates will influence many future policy decisions. The incoming Administration, in cooperation with a Republican-controlled Congress, will likely pursue policy that will boost GDP growth in the short run. However, if policy changes result in a growing deficit or overheating labor markets, interest rates will rise (faster) in response. Moreover, any policy changes that restrict trade will act as a drag on economic growth.
FEDERAL JUDGE BLOCKS OVERTIME RULE
NATIONAL NEWS
Interest rates are sure to grow in the years ahead. Smart policy is needed to identify economic efficiencies that will help limit how quickly those rate increases accelerate, thereby supporting housing affordability and improving business lending conditions in the longer term.
HOUSING AFFORDABILITY EDGES LOWER IN THIRD QUARTER By Rose Quint
In a victory for NAHB, a federal judge in Texas on Nov. 22 granted a preliminary injunction to delay implementation of the Department of Labor’s new overtime rule. The rule, which was scheduled to take effect Dec. 1, would double the minimum salary limit from $23,660 to $47,476.
In all, 61.4% of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $65,700. This is down from the 62.0% of homes sold that were affordable to median-income earners in the first quarter.
NATIONAL NEWS
NAHB joined other business groups in filing a legal challenge to the overtime rule on Sept. 20. The lawsuit was filed in the U.S. District Court for the Eastern District of Texas. In addition, 21 states have also filed suit challenging the rule and the two lawsuits have been consolidated. The parties have filed motions for a summary judgment.
Ongoing home price appreciation offset a small decline in mortgage interest rates to move housing affordability slightly lower in the third quarter of 2016, according to the National Association of Home Builders/ Wells Fargo Housing Opportunity Index (HOI).
The national median home price increased from $240,000 in the second quarter to $247,000 in the third quarter. Meanwhile, average mortgage rates edged lower from 3.88 percent to 3.76 percent in the same period.
Visit nahb.org/hoi for tables, historic data and details.
While the injunction is only temporary, the ruling by Judge Amos Mazzant sent a strong signal that he could likely side with NAHB and our business coalition.
December 2016 | Building Buzz
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CORPS LETTER CLARIFIES JDS FOR WETLANDS PERMITS The U.S. Army Corps of Engineers issued a Regulatory Guidance Letter in response to the U.S. Supreme Court’s decision in Hawkes v. United States. In that decision, the court said that a jurisdictional determination (JD)—in which the Corps decides whether a piece of land should be subject to federal oversight under the Clean Water Act—is something that a developer can take to court.
The guidance letter clarifies the differences between the two kinds of JDs and how builders and developers can obtain them.
JDs are important because developers have no way of knowing whether a feature is jurisdictional simply by looking at it. However, once the Corps issues a JD, it carries significant legal and financial consequences on everything from lending practices to state rules and regulations. The Supreme Court said in Hawkes that when the Corps determines the precise boundaries of jurisdictional waters on a landowner’s property, that landowner can dispute the determination in court.
The new guidance—the first of its kind issued by the Obama Administration—accepts
the Supreme Court decision and provides guidance to the Corps’ staff (and public) explaining when it is appropriate to issue an approved jurisdictional determination (AJD) or preliminary jurisdictional determinations (PJD) or not make any determination at all.
The Corps guidance explains that AJDs are official determinations that jurisdictional waters exist on one’s property, while PJDs are not legally binding. Finally, the guidance provides the forms that property owners are to use when requesting that the Corps conduct an ADJ or PJD.
NO QUICK FIXES FOR BUILDERS AS TRUMP ADMINISTRATION SLOWLY TAKES SHAPE As President-elect Trump begins to assemble a leadership team and a game plan for governance, NAHB is hard at work to ensure that our members’ priorities are addressed by the administration that will take office Jan. 20. But even when those priorities are in alignment with Trump’s campaign platform, none of these changes can take place overnight. Some, tied up in litigation or involving multiple agencies and branches of government, may take years. And others depend on leadership appointment confirmations that also take more time than they should.
No matter what happens, NAHB government affairs, legal and regulatory staff is already preparing. Leaders have had extensive discussions and sent background information to the Trump team about a number of significant issues, including President Obama’s Executive Order that drastically changes development rules in and around floodplains. “While there may be some expectation of quick and dramatic reversals of some existing policies, political reality may temper the pace and extent of those changes,” First Vice Chairman Granger
MacDonald told the NAHB Executive Board when they convened for an online meeting Nov. 18.
For example: health care reform. While both the Republican leadership in the House and Senate want to see significant changes made to the Affordable Care Act, it’s not yet clear what specific issues, like health reimbursement arrangements, will end up in the mix, or whether the Republicans’ rejection of Obamacare will result in repeal, revision or a brand new set of programs.
Until the new Trump team is in place and has made decisions about what to tackle first, it’s hard to predict whether, say, the regulatory overreach seen in the Waters of the United States definitions – an issue of great importance to home builders – or
other headline-grabbing rules such as the Clean Power Plan, will move to the head of the line. And to complicate matters, both those regulations have been stayed in federal court.
“The outcome of the election is likely to re-shape the political landscape for many of NAHB’s highest policy priorities,” MacDonald told the NAHB leadership. “We cannot be certain as to what will change, or how quickly changes will occur. Regardless, we see this as a tremendous opportunity, because our advocacy team is well-prepared to respond to the new political environment.”
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
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Building Buzz | December 2016
BUILD-PAC’S TRACK RECORD REMAINS STRONG IN NOVEMBER ELECTIONS Despite all the twists and turns of the recent election cycle, one thing remained constant: the growing strength of BUILD-PAC, NAHB’s political action committee, dedicated to electing the most qualified pro-housing, probusiness candidates to federal office.
NON-MORTGAGE CONSUMER DEBT ACCELERATES By Michael Neal
The Federal Reserve Board reported that consumer credit outstanding grew by a seasonally adjusted annual rate of 7.0% over the third quarter of 2016, 0.6 percentage point faster than the 6.4% rate of growth in the second quarter. There is now $3.71 trillion in outstanding consumer credit.
Throughout the 2015-2016 election cycle, BUILD-PAC supported 356 U.S. congressional candidates. On Nov. 8, 95% of the candidates won their races. “BUILD-PAC has made great strides in this election cycle,” said Eugene Graf IV, the 2016 BUILD-PAC chairman. “We disbursed more than $2.8 million to federal candidates and committees – an 18% increase over the last cycle. BUILD-PAC’s support of pro-housing candidates is shaping the political landscape.” Also, for the first time in its 74-year history, NAHB this year endorsed candidates for the U.S. Senate and the U.S. House of Representatives. Of the 137 candidates NAHB endorsed, 129 – or 94% – won their races on Nov. 8. Learn more about the impact of the 2016 elections on housing online at https://goo.gl/2XVGqs.
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Growth in the outstanding amount of consumer credit overall reflected an increase in both revolving and nonrevolving credit. Revolving credit is largely composed of credit card debt while non-revolving credit includes both student and auto loans. Over the third quarter, revolving credit rose by 7.6% and now totals $2.73 trillion while non-revolving credit climbed 5.2% reaching $979 billion.
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Savings in these programs and others help cover the cost of your membership dues and benefits your local association. Access all Member Advantage discounts at nahb.org/ma.
We’ve Got Home Loans.
*Starts November 21 through December 5. **Terms and conditions apply.
Prequalify Fast - Apply In 10 Min. Apply online at www.capcu.org and know within one business day how much you prequalify for.*
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It’s Not Just Business. It’s Personal.
December 2016 | Building Buzz
13
NDAB NEWS
Volume XXIII, Issue 12
Monthly News from the North Dakota Association of Builders
Thank You!
December 2016
Cheers to 2016! “Time goes by so fast, people go in and out of your life. You must never miss the opportunity to tell these people how much they mean to you.” Unknown
It seems like just yesterday I was saying, I hope your year is off to a great start and I was very excited to be representing you as your 2016 President. As I look back at the year, one of my goals to make sure that we fostered our need to have housing in the discussion during the 2016 election process. I think we accomplished this and did it at all three levels Arnold Karsky NDAB President (our local HBA, NDAB, and NAHB). I believe that we had our boots on the ground during this election and made housing a topic of discussion for this election. It will be interesting to see how the next few years will play out at all three levels of government. Having housing in the discussion during the election process will definitely help as we talk with our elected officials about regulations, codes, and other issues that will arise over the next couple of years.
It seems like I was just writing up Thank You’s and welcome notes to our incoming board members and now it is time to acknowledge all that they did for us in 2016. I should first start out Kim Schneider NDAB Executive Officer thanking our 2016 President, Arnold Karsky out of Dickinson along with his wife Becky and their three children. It is important to recognize and remember that those who serve on the NDAB Board of Directors are all volunteers and I greatly appreciate the time that they put forth into the success of our organization. The time that they give to attend NDAB and NAHB meetings and events is often time away from their personal life, their families and their careers. Arnold brought forth energy, new ideas and personal experience during his term. He ended the year by holding a tour where we invited Senior Officers to join us as As I think about the past year, I start thinking about everything we visited each local associations board and Executive Officer. that has happened. The one thing that stands out is that our State We asked them how things were going, what the state can do to help them continue to grow membership and support events and and Local Associations grew and became stronger. As we we discussed Government Affairs issues. It was a great opportunitraveled though out the State and sat down with each Local ty for us to connect with the local leadership and in some cases, Association, I see we have a lot of members that care about the Housing Industry and it is great to see. The people in the trenches help them celebrate the closeout of another successful year.
everyday within our State are members that I was proud to have on my team. If we can keep the dedication to our industry going like it was this year great things will happen.
As we close out 2016, I hope everyone had a successful year and are looking forward to an even better 2017. Have a Merry Christmas and a Happy New Year, Arnold Karsky
This time of year, we also thank our outgoing Past President who served more than 6 years on the NDAB Executive Committee. LeRoy has always been a source of great information, leadership and laughs! We look forward to a continued partnership with LeRoy! To all of the members of the 2016 NDAB Board of Directors, NDAB Government Affairs Committee, and NDAB-PAC, I give you a heartfelt Thank You! In the past year, all of you have stepped up to help NDAB in various roles. Each as important as the next. Our members find value in all that we offer thanks to your vision, drive and inspiration. We were able to offer new events, new fundraising opportunities and all around strong support. During the 2016 election, we donated to 57candidates across the state. Of those, 40 were re-elected or elected! We are looking forward to working with them in the upcoming year. If you have called or emailed our office, you have probably heard a new voice! On November 1, NDAB welcomed Brenda Bry as our new Events Coordinator. Shirley Jacobchick will be re-joining NDAB as our Communications and Office Coordinator after she recovers from an accident that occurred right after she started with our team. We are anxious to have Shirley return, but want her to take the time she needs to fully recover! Here is a toast to 2016 and I hope that 2017 brings you new joy, laughter and wonderful memories! We are grateful for each and every one of you! Cheers, Kim
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
14
Building Buzz | December 2016
AROUND THE STATE The Forx Builders Association was happy to donate $1,000 to Around the• State CIVIC for their Safe House. Around the State Bismarck/Mandan HBA for donating a Decorating Services, Top Recruiter; Ken
Dickinson Area Builders Assoc.
Tiffaney Dolechek, Executive Officer 701-483-0044 | dickinsonareabuilders.com We want Arnold Karsky and NDAB EO Kim computer for our new Executive! Krajsa, Bell State Bank• & Trust, Top to thank President Dot Frank, Executive Officer The Builders Association sends out Spike;isGeorge Fraza, BlueSchneider Cross Bluefor attending ourForx November Board of Director’s • DABA’s Annual Christmas Party and Awards Banquet Home show booths are being sold now!for bmhba.com Dot701-222-2400 Frank, Executive Officer a big Thank You to LeRoy Kurtyka Shield of ND, Top New Spike; Ken Krajsa meeting January 8th is He the has deadline December 8th. We have a great event committee and are Executive 701-222-2400 bmhba.com Bryce Johnson, President his support. beenforonour our local Cornerstone Award.Vice HBC granted $12,500 preferred vendors. Home show is April 15 excited The BMHBA has beenWe busy following for this event. are doing a silent701-232-584 auction and board as President three times and on 6 hbafm.com in scholarships to local high school • The Forx Builders Association sends out a big Thank You Members gathered ininOctober toand hear – 17, 2016 ordinance Bismarck students and college students in or Kurtyka for his the NDAB board donating allupdates proceeds to two local non-profit to LeRoy support. He hasgoing been up on the our chairs localfor and contact Jackie@willistonbuilders.com discussion the 2016 building season organizations Congratulations to our Awards Winners Mandan, on Burleigh and Morton Counties. planning on enrolling in the construction serving in 2015. the Sunset Senior Center, and dated Dickinson Optimists Club. questions. and about new requirements board as President three times as andNDAB on thePresident NDAB board going Allhear are reviewing and updating which were presented at the Awards programs. The 2017 Home Design & Garden Show codes. Eyes for are the currently on permit cost coming online 2017 season. The Our December General Membership Gala & Annual Meeting October 25. up the chairs and serving as NDAB President in 2015. • We are sad to see three great board members leave, The but HBAwe of F-M held a PAC Social with is scheduled March April 1 and changes and development standards. Building Officials Round Table included meeting will befor held on the31, 17th Tom Spaeth, Accent Contracting, was welcomedand three awesome new board members: special Mike Jangula guest Jerry Howard to talk about The 2017 Home DesignApril & Garden Show is scheduled 2 at the Alerus Center. for discourse that will now awarded Builder of the• Year. Associate discussion A housing analysis conducted by Bismarck issues NAHB is working on in D.C. and with Scull Construction, Gene Kruger with Bierschbach March 31, April 1 and April 2 at the Alerus Center. be and shared with outlines local commissioners. Mandan a need for an ofhow thethey Yeartiewent to Dawn Cruff, Green in locally. The event was a Thank you so much to our Annual Supply, and7,786 Jane owner-occupied Hadley Real Estate and Rental additional homes Team Realty. The BEAMinAward was BMHBA members voted inwith newthe board success with 75 members Minot Association Builders Minotattendance. Association of Builders Banquet Sponsors! of Your support by 2030. The HBA is working on a task Guide. given to Dakota Construction of Fargo. members at the Fall Awards Mixer and Just under 20 members attended a Lunch Elysha Head, Executive Officer force to explore implementation of the helped us to put on a great event! We Elysha Head, Executive Officer The staff’s Extra Mile award was GMM. Rory Anderson with Verity Session with local building officials to talk 701-852-0496 • The 2016recommendations. DABA award winners are Winn Construction study’s had a great crowd and a funminotab.com evening presented to twoissues members this year: | minotab.com 701-852-0496 Homes was voted in as a new board about the latest in residential Builder of the Year,a Shirley Dukart Associate of the Year, member Members elected new Builder board celebrating the year end and will be held The 2017 Parade of Homes Eric Miller, Capital Credit Union, and along with the reelection of construction. • TheBuilders, 2017 Parade ofrecognizing Homes will be on September 16th, member at the Fallof GMM on Nov. to fill Mike Schwab Affiliate Year,24 and Venture Homes BEAM allheld our16th, amazing on September 2017!Award The first Odden, Stone Ridge Chad Moldenhauer Kof&the L Homes, Inc. Trevor The New Year Celebration2017! & CityThe Nightfirst is Parade went so well that the Association Past President Vance Vetter’s seat. The winners. We are already looking Parade went so well that the Association award! Congratulations and thank you for all of your hard Inc. Top New Spike was presented to and2016 Bill Schmid of Townsquare Media. on Jan. 28 at the Radisson in Fargo. board of directors will be sworn in at decided to make it forward an annual Stay tuned for next more details toevent. doing it all again year decided to make it an annual event. Tracy Nicholson, Spotlight Media. word and dedication toJan. the association! Mayors from Fargo, Moorhead, West Top The BMHBA has teamed up with the the Annual Banquet on 14. regarding next year’s show. in Bismarck! Stay tuned for more details regarding Spike award was given to Rodd Fargo, Dilworth & Oxbow will be in Symphony Orchestra Bismarck-Mandan The BMHBA welcomes all Fargo-Moorhead members to year’s Rasmussen, Valley Lights, and Top Banquet isnext Home Builders Assoc. of attendance and participate on aBuilders mayoral • The coming up show. on December 6th! to rebuild Holiday Home Walk. attend athe Lead Renovator and Lead The Recruiter Award was given to Robin panel. We will also have special guest Al Bryce Johnson, Executive Vice President The Builders Banquetbanquet is coming Members will gather for a Christmas themed thisup on event, which Initial has aand 36-year history, has Renovator Refresher course Jaeger, Secretary State. If you would Swanson, SuperiorofInsurance. December 6th!join Members will gather 701-232-5846 hbafm.com waned in recent years and wasn’t year. The Trivia Tour of Bismarck will us to entertain our for on Nov. 30|and Dec. 1, respectively. like to attend, please visit the events Over $14,000 was given in scholarships a Christmas themedReindeer banquetRing this Toss year. Visit bmhba.com/events register.of the hosted last year. With thetosupport members. We will also have a photo booth, calendar at www.hbafm.com. • Congratulations to our Awards Winners which were The Trivia Tour of Bismarck will join us to area students at the Awards Galadressed & HBA, eight homes were featured Nov, and a best award along with a few other events. Dickinson Assoc. presentedArea at theBuilders Awards Gala & Annual Meeting October 25. Association to entertain our members. We will also Annual Meeting. Forx Builders 20. Platinum Sponsors—Kuntz Builders, • Planning for the 2017 Home Garden Show is well Irene Schafer, Executive Officer have and a photo booth, Reindeer Ring Toss Tom Spaeth, Accent Contracting, was awarded Builder of the McDonald, Executive Officer Betty The HBA of F-M endorsed candidates The BMHBA is excited to host its peers Inc.Association and Winn Construction, Inc. underway. The Minot of Buildersaward is looking 701-483-0044 dickinsonareabuilders.com and a best dressed along with a Year. Associate of the Year went to Dawn Cruff, Green Team during the election. In addition, an 701-746-4536 forxbuilders.com at the Annual Banquet on December 1. few other events. forward to refreshing the 2017 Show by adding multiple new important sales tax extension vote Realty. The BEAM Award was given to Carmen Ciricillo close outDakota Construction Comedian Our regular GMM was heldwill at the Eagles attractions inSponsor—ProBuild the Park, Yard, passed Theretowas good at Slate Pub Planning forThe the Youngster 2017 Home andThe in the cityattendance and county to helplike theSilver a of busy night with his 11 construction Fargo. staff’s Extra award two Club on The November with Mile a moment ofwas presented Interior Design’s November Builders after Ready Builders Lego Homebuilding Competition and adultThe Garden Show is well underway. secure permanent flood protection for wisecracks. Registration is available members this year: Miller, Capital Credit Union, and silence honoring ourEric veterans. NDAB-PAC Reception Hours. Thank you Alissa. presented by The Market on 4th. Other changesisinclude Minot Association ofSponsor—Bosch Builders looking the Fargo-Moorhead area.classes Thank you online bmhba.com/events. Odden, Stone Ridge Builders, Spike was Builders after Hours will be Trevor Our Home Show committee is busy Inc. Top New Co. Decemberfor forward to refreshing the Show by toThe NDAB-PAC the funds to help having a Friday andLumber Saturday show dates. MAB is 2017 very excited planning our Home Nicholson, Show in April, presented to Tracy Spotlight Media. support Top Spike hosted by the Membership Committee and adding multiple newthe attractions these candidates to and you trythank out the new activities to reinvigorate show! like the updating adding new features. Banner West, LLC award wasand given to Rodd Rasmussen, Valley Lights, and the Boardfor of financially Directors atsupporting Keith’s Security Dickinson Area Builders Assoc. PubSponsor—Roers in the Park, The Youngster Yard, to NDAB the Top Our main focus right Officer now on to Robin Swanson, World. Bisson owner of Keith’s Lock &BuildersThe Recruiter Award wasisgiven Superior Tiffaney Dolechek, Executive Williston Area Association Ready Builders Lego Homebuilding sales taxJim extension campaign through Key will be retiring the end of December the State Meeting here in Dickinson. We Competition and adult classes its Issues Fund. 701-483-0044 Insurance. dickinsonareabuilders.com Mariah Bates, Executive Officer and we will be helping him celebrate this are looking forward to making this a Also,presented Thank you the NDAB by to The Market on2015 4th. Other The HBA of F-M looks forward to its 701-572-5744 | willistonbuilders.com milestone.at • DABA’s Annual Christmas special night for Arnold asand he is Over $14,000 was givenKarsky inParty scholarships to area students Partners! We truly appreciate yourand changes include having a Friday New Year Celebration & City Night installed as our is State President. Awards Banquet December 8th. We Our Home Design and Garden Show will has hired Mariah Bates their new Executive Officer. support andas we have enjoyed the Awards Gala & Annual Meeting. Saturday show dates. MAB serving is very January 26. 1, 2 & 3 at• theWABA a greatthat, event committee and are have Following we also busy planning our be held April Alerus Center. Mariah brings great marketing to new theyear! position. you throughout excited toexpertise trythe out entire the activities The to forChristmas this event. WeNewly are doing a during the election. In • excited The HBA of F-M endorsed candidates annual Party. elected Board of Directors and reinvigorate all of the members are excited to have the show! Minot Association of Builders silent auction and donating all proceeds Vice President, Val Voelkering is busy with addition, an important sales tax extension vote in the Forxpassed Builders AssociationMariah! Executive Officer herand committee putting final touches tothe a tocity two local non-profit organizations county to help secure permanent flood protection Betty McDonald, Executive Officer Williston Association very special evening at the Elks Club. 701-852-0496 minotab.com Sunset Senior Center, and Dickinson • The 2017 Home and GardenArea showBuilders will be held April 7-9th for the Fargo-Moorhead area. Thank you to701-746-4536 NDAB-PAC for forxbuilders.com Mariah Bates, Executive Officer Club, Optimists We would like to take this opportunity to 2017 at the Raymond Family Community Center. the fundsantoinvitation help support these candidatesand thank you Water We are having and a “Holiday Open House” 701-572-5744 willistonbuilders.com Kitchen Bath hosted a fun for to Kim andboard Heather Weextend are sad to see three great our members here at the office December toand NDAB forassociations financiallytosupporting the sales taxBuilders extension other attend ourthree after Hours. Mario LaPlante, WABA has hired Mariah Bates as their members leave, but we welcomed 15th from noon-7pm with food and Christmas party. Goldnew Partner - Montana Dakota campaign through Issues Fund. Hebron Brick & Block, was the lucky awesome new boardits members: Mike Executive Officer. MariahUtilities brings beverage. winner of the beautiful bathroom vanity Merry with Christmas and Happy NewGene Year to Jangula Scull Construction, great marketing expertise to the • The HBA of F-M looks forward to its New Year Celebration & Silver Partners - Bismarck-Mandan door prize. everyone! Williston Area Builders Association Kruger with January Bierschbach position. The Board of Directors and all City Night 26. Supply, and Home Association, Dickinson Janna Keith’s Jane Hadley with the Real Estate and Lutz, Security ExecutiveWorld Officerwill host Builders ofBuilders the members are excited to have Area Builders Association, Home Builders after Hours on December 8th. Food and Rental Guide. Mariah! 701-572-5744 willistonbuilders.com Forx Association BryceBuilders Johnson, Executive Vice President Association of Fargo-Moorhead, & beverages will be provided by the Betty TheMcDonald, 20166 DABA award winners are The 2017 Home and Garden show will Executive Officer hbafm.com 701-232-584 Northern Plumbing Supply WABA welcomes new incoming board Membership Committee and the Board Winn Construction Builder of the Year, be held April 7-9th 2017 at the Raymond 701-746-4536 | forxbuilders.com Lance Bevier of Tractor and ofmembers: Directors. Dukart of the Year, our Family Community Center. Shirley Thank you toAssociate everyone who attended Bronze Partners - Bell State Bank & Equipment Co., Joan Mainwaring of after The Hours. Forx Builders Association was • Mike Water Kitchen Bath hosted a and fun Builders Schwab of Meeting. the Year, Awards GalaAffiliate &and Annual The HBA American State Bank and Trust Co., and Trust, Forx Builders Association, Minot happy to donate $1,000 to CIVIC for Venture Homes BEAM award! of F-M celebrated award winners Mario LaPlante, Hebron Brick & and Block, was the lucky winner Bob Radermacher of Bakken Contracting. Association of Builders, ND Guaranty & recipients with you over 200 Congratulations and thank for allofofitsprize. their Safe House. ofscholarship the beautiful bathroom vanity door Mark Schneider, LJA, was sworn in as our Title Co., ND Housing Finance Agency, members. Theand awards went to to Clay your hard word dedication the We want to thankPresident President Arnold incoming WABA at our Annual ProBuild, RDO Equipment Co., & Williston Dietrich, DietrichWorld Homes, Inc., Builder of after Hours • association! Keith’s Security will host Builders onand Karsky NDAB EO Kim Schneider Meeting in November. Area Builders Association the Year; Paul Krabbenhoft, Coldwell December 8th. Food and beverages will be provided by the for attending our November Board of Banker First Realty, Associate of the Year; Top Spikes were also recognized: Bill Membership Committee and Beecher, the Board of Directors. Director’s meeting Heritage Homes, BEAM; Dan Murphy and Dave Nordenstrom became Foam Doctor’s LLC, Extra Mile; John Koerselman, Red River Drywall &
www.ndbuild.com www.ndbuild.com
Life Spikes in 2015! Special thanks to Dot Frank and the
North Dakota Association of Builders North Dakota Association of Builders
December 2016 December 2015 December 2016 | Building Buzz
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UPCOMING BMHBA EVENTS Annual Banquet - December 1 at 5:30pm What’s New on Houzz - December 6 at Noon 2017 International Builders Show - Jan 10-12 in Orlando, FL Chili and Oyster Feed with Legislators - February 15, 2017 40th Annual Home Show - February 17 & 18, 2017
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