December 2019 Building Buzz

BISMARCK-MANDAN HOME BUILDERS ASSOCIATION DECEMBER 2019 || WWW.BMHBA.COM

BUILDING Building Buzz is a publication of the Bismarck-Mandan Home Builders Association.

Bismarck-Mandan Home Builders Association 2600 Gateway Ave, Ste 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730

www.facebook.com/bmhba PROFESSIONALS BUILDING OUR COMMUNITY THROUGH PROMOTION OF

SINCE 1958.

www.twitter.com/bmhba

PRESIDENT Northern Plains Plumbing, Heating & Air 701-222-2155 greg@northernplains.net

Sattler Homes 701-255-7628 jeff@bismarckbuilder.com VICE PRESIDENT

www.houzz.com/pro/bmhba

Choice Bank 701-258-3300 s.franklin@bankwithchoice.com

Verity Homes of Bismarck 701-663-4117 rory@verityhomes.com

K & L Homes 701-258-4584 cmoldenhauer@midconetwork.com

2ND VICE PRESIDENT Aspire Homes 701-426-8583 greg@daretoaspire.com

Townsquare Media 701-250-6602 bill.schmid@townsquaremedia.com

TREASURER Boulder Homes 701-400-5554 boulderhomesnd@gmail.com

PAGE 6

Stoneshire Builders 701-471-6935 brian@stoneshirebuilders.com

PAST PRESIDENT

PAGE 8

Gate City Bank 701-355-7633 lynnklein@gatecity.bank

BNC National Bank 701-250-3050 mmenge@bncbank.com

Triton Homes 701-223-3030 jamie.schmidt@investcore.com

Dot Frank Simone Marchus Elysha Head

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Representing the diversity of the building industry, the BMHBA consists of building specialists from every section of the construction field and associated industries. Your membership strengthens our voice in Bismarck-Mandan construction sector as well as at a state and national level. Please renew your membership by December 31st, 2019.

Shannon Gangl

Mark Klein

Kevin Turnbow

Karol Wandler

Tyler Perry

Chris Vigness

Michael Odden

Jayden Chuppe

Brian Ritter

Alison Andreasen

Annette Behm-Caldwell

Rory Anderson

Keith Doerr

Kimberly Mangskau

Andrew Meldahl

Gene Anderson

Dale Miller

Travis Berger

Mark Abramson

Galen Bren

Jason Brendel

Rick Slavik

Randy Mathern

Paul Barnum

Mike Hopfauf

Ed Talbacka

David Williams

Shaun Kessler

Ray Ziegler

2019 It is crazy to think that December is here, and I am writing my final letter this year. This would typically be my last President’s column, but my legacy shall continue for another year as Greg Meidinger moves into the Vice Presidents role next year. The last meeting of the of the current board is December 31. Were saying goodbye to these retiring board members – Chad Moldenhauer, Rory Anderson, Lynn Klein, Susie Franklin and Marc Menge. Thank you for your years of service to the BMHBA. In January we will welcome our new board members Joe Vetter, Amy Larsen, Vicki Moran, Bill Schmidt, McKenzie Lawler and Randy Tank. Thank you to the new members for accepting nominations and wanting to get involved to help our organization continue to grow.

Thank you to all the members and sponsors who turned out for the Fall Mixer and Board Elections. Also thank you to the events committee for on a fun hunting theme complete with a trail mix bar and beef jerky at the table settings.

According to the survey that was filled out at the event, the top priority our members indicated for 2020 is member networking followed by legislation, education, promotion to consumers and consumer events. The board will meet in January to talk about ways to deliver on the priorities you all have identified.

Regards,

2019 PRESIDENT :: BMHBA

Our association continues working and having conversations with the cities and counties that we are working in. The latest activity is attending and testifying at the meetings for the adoption of the 2018 IRC and its revisions adopted by the State of North Dakota.

Several of our member attended the NDAB Annual Banquet and Board Meeting in Grand Forks. All members of the BMHBA are members of the NDAB and are encouraged to get involved on a state level. Meetings are open to members and we have seats to fill to represent our association on their board.

Remember to always be recruiting. We have strength in numbers. Membership applications are available online and staff is always on standby to follow-up on referrals.

Our next event is the Annual Banquet on Jan. 17, 2020.

This event is being held at the Harvest Event Center on Main Street in Mandan. Registration is open online at www.bmhba.com/events.

MONTH

YEAR

JANUARY

2015 2016 2017 0

9

2018

2019

1

0

10

2015 2016 2017 2018 2019 0

0

0

2015 2016 2017

2018

2019

1

0

0

2

0

2015 2016 2017 2018 2019 0

2

0

0

2

2015 2016 2017 2018 2019 0

0

0

0

2 0

3

4

5

2

0

0

0

0

1

2

6

5

0

0

0

0

3

0

1

1

0

0

MARCH

21

22

14

2

9

2

2

1

11

6

4

8

2

0

3

0

0

0

9

9

4

2

4

APRIL

52

29

40

27

26

4

3

6

14

12

8

16

11

18

2

4

0

6

14

5

11

11

14

MAY

31

46

29

16

28

JUNE

31

43

48

24

18

JULY

40

16

60

22

17

AUGUST

20

48

16

27

19

SEPTEMBER

28

44

26

22

23

OCTOBER

54

14

22

15

36

NOVEMBER

16

11

9

11

DECEMBER

1

0

0

1

TOTAL

297 286 270

169

186

YTD TOTAL

280 275 261

157

186

YTD Total

-2% -5%

-40%

18%

Total

-4% -6%

-37%

10%

BISMARCK SINGLE FAMILY DWELLING VERITY HOMES VERITY HOMES PARAMOUNT BLDRS PINNACLE HOMES J AND J PROPERTIES J AND J PROPERTIES K & L HOMES JOE VETTER CONST DIVERSITY HOMES DIVERSITY HOMES DIVERSITY HOMES COPPER RIDGE COPPER RIDGE COPPER RIDGE COPPER RIDGE J. E. PROPERTIES J. E. PROPERTIES

4400 SERENITY CT 4406 SERENITY CT 4101 DOWNING ST 5307 GOLD DR 3811 POWDER RIDGE DR 515 FLINT DR 5817 VALLEY VISTA LN 3903 COGBURN RD 2700 DEL RIO DR 4704 MARSH HAWK DR 1308 CREST RD 804 COMPASS LOOP 737 COMPASS LN 738 COMPASS LOOP 805 COMPASS LN 3732 STACY DR 3724 STACY DR

Data not collected for the ETA in 2015 and 2016.

FEBRUARY

0

0

5

6

4

26

13

11

15

11

17

2

5

5

0

14

16

7

20

10

10

2

2

21

20

13

13

4

1

6

3

1

1

8

11

4

4

6

3

3

2

9

13

6

11

12

0

5

1

5

1

13

9

4

3

11

6

1

7

17

7

13

20

10

8

2

9

4

5

8

9

6

8

5

8

3

10

16

14

26

11

10

3

3

4

5

2

9

9

9

6

5

4

7

3

9

29

20

9

9

17

10

7

5

3

4

7

3

7

1

3

0

7

7

7

6

2

5

0

0

3

4

1

0

0

0

0

0

0

0

1

0

4

0

0

0

2

0

123

45

27

35

132

114

116

69

67

40

37

28

20

83

80

51

61

58

42

27

35

125 116 107

110

69

64

35

33

28

20

80

76

48

61

58

-36% 30%

-7% -8%

3%

-37%

-45% -6% -15% -29%

-5% -37% 27% -5%

-40% 30%

-7% -7%

2%

-41%

-40% -8% -24% -29%

-4% -36% 20% -5%

VERITY HOMES VERITY HOMES PEARSON HOME BLDRS BOULDER HOMES J. E. PROPERTIES APEX BUILDERS PRAIRIE AIRE HOMES K & L HOMES COPPER RIDGE PRAIRIE AIRE HOMES HALLMARK HOMES PREMIER HOMES PREMIER HOMES PREMIER HOMES E HOMES COPPER RIDGE PREMIER HOMES EPIC HOMES

207 KENNER LOOP 3326 RUTLAND DR 1212 ROUND TOP RD 5833 GOLD DR 5605 GOLD DR 500 COLT AVE 3819 SILVER BLVD 5801 VALLEY VISTA LN 933 WEST GLENWOOD DR 3937 CLAIRMONT RD 3618 MAYFLOWER CIR 4011 SILVER BLVD 3912 SILVER BLVD 4007 SILVER BLVD 3814 SILVER BLVD 1001 WEST GLENWOOD DR 4010 SILVER BLVD 4203 SANDY RIVER PL

RUDNICK CONST

6001 MISTY WATERS DR

APPLEWOOD HOMES

7325 STAR LANE

RUSCH HOMES RUSCH HOMES RUSCH HOMES

6918 MAJESTIC PL 2923 ARMSTRONG ST 6917 MAJESTIC PL

TURN KEY HOMES DIVERSITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES RALL CONST

4609 CROWN POINT RD NW 4509 BORDEN HARBOR DR SE 3804 24TH ST SE 3808 24TH ST SE 3724 24TH ST SE 3728 24TH ST SE 3720 24TH ST SE 3716 24TH ST SE 3909 TRIDENT CT NW

BURLEIGH CITY SINGLE FAMILY DWELLING LINCOLN SINGLE FAMILY DWELLING

MANDAN SINGLE FAMILY DWELLING

On Oct. 28, the Bismarck-Mandan Home Builders Association hunted for 2020’s Board of Directors.

Congratulations to the six Board Members elected: Amy Larsen of Apex Homes, Joe Vetter of Joe Vetter Construction, Bill Schmid from Townsquare Media, Randy Tank of Great Plains Rehab, McKenzie Lawler from Dakota OutdoorScapes and Vicki Moran of Hallmark Homes. Thank you to the generous sponsors who made the Fall Mixer & Board Elections a night to remember: D&M Industries, Front Street Millwork, The Bismarck Tribune, Kirkwood Bank and Trust, Starion Bank and Townsquare Media.

The weather outside is frightful, but the Holiday Home Walk was so delightful. On Nov. 24, the BMHBA and the BismarckMandan Symphony Youth Orchestra (BMSYO) hosted nine homes in the Holiday Home Walk. Each home was decorated to the nines in Christmas dĂŠcor, and two homes had the pleasure of hosting live performances by the BMSYO. The BMHBA would like to thank the eight builders who participated in this merry day: Big River Builders, Burleigh Builders, Diversity Homes, Huntington Homes, Knutson Homes, Stoneshire Builders, Aspire Homes, and Joe Vetter Construction. All proceeds from the Walk benefit the BMSYO. Thank you to everyone who purchased tickets.

The City of Mandan is still seeking letters of interest from persons willing to serve on three different boards that assist with city governance. Open positions remain for the Cemetery Advisory Committee, Code Enforcement Appeals Board, and Library Board of Trustees.

Residents are encouraged to submit a letter summarizing their desired appointment, background and reasons for interest. Letters will be welcomed through Dec. 6, 2019, or until the positions are filled. Submit letters to Program Coordinator Kari Moore, by e-mailing to kari.moore@cityofmandan.com or mailing to 205 Second Avenue NW, Mandan, ND 58554.

Here are more details about the opportunities: • Cemetery Advisory Committee. One position will be considered for appointment with a term ending in 2022. Members must be Mandan residents living in city limits. The committee reviews Mandan Union Cemetery rules and helps to generate ideas and implement improvements to the cemetery grounds. The committee meets as needed.

• Code Enforcement Appeals Board. Positions for two, two-year terms ending in 2021, and two, three-year terms ending in 2022 are up for consideration. This committee reviews code enforcement violation appeals and meets on an as-needed basis. Members must be Mandan residents.

There are a few local positions up for reelection in 2020. The earliest date candidates may begin circulating petitions is Jan. 1. Petitions may be filed as early as Jan. 2, but no later than 4 p.m. on Monday, April 6, 2020.

There are three Mandan City Commission positions, including the mayor, two commissioners, and municipal judge; three positions with the Morton County Commission; three Mandan Park Board positions; and two Mandan School Board positions.

Bismarck has two City Commission positions; Burleigh County has two positions; the Bismarck Park Board has two positions; and Bismarck School Board has two.

For more information visit cityofmandan.com/elections or bismarcknd.gov/625/City-Elections.

• Library Board of Trustees. There is one position for a term expiring on June 30, 2022. Candidates must be residents of Morton County, residing outside Mandan city limits. Trustees assist in identifying library needs and help to improve services. Meetings are generally held the fourth Monday of the month at 5:30 p.m. at the library.

For membership lists and descriptions for more City of Mandan volunteer advisory positions, visit www.cityofmandan.com/boards. Information is also available upon request at City Hall, 205 Second Avenue NW, or by calling 6673215.

Gov. Doug Burgum recently recognized Mandan with the 2019 Main Street ND Legendary Heritage Award for the Historic Apartments on Fourth. The 2019 Main Street Awards honors communities that show excellence in elevating the three pillars of the Main Street Initiative: healthy, vibrant communities; smart efficient infrastructure; and 21st century workforce. The Legendary Heritage Award focuses on preserving and protecting historical assets. The Historic Apartments on Fourth, formerly Mandan’s junior high school, is now on the National Register of Historic Places, and offers 39 affordable housing units designed to attract and retain workforce.

The City of Mandan Engineering & Planning department reminds citizens to check their sump pumps to ensure proper functionality. It is especially important this year, heading into winter with above average moisture in the ground.

Discharge of sump water. Drain sump water away from your home on to a nonerodible surface such as concrete so that it will drain into the street if possible.

Discharging into your own yard, may cause the water to return to your sump.

Please do not pump water into your floor drains, toilets, or sinks in your home as that increases the volume of ground water to the wastewater treatment plant which is not set up to treat large volumes of ground water.

Drainage of sump pumps into the sanitary sewer is against City ordinance.

However, if necessary, to pump during winter months, and if reasonable concerns that such pumping will result in freezing in unwanted locations, the City will allow conditional pumping into the city sanitary sewer system from Oct. 1 through March 31 with a signed seasonal waiver form. This form is available at cityofmandan.com/engineering or in the Engineering & Planning office at City Hall.

Mayors Tim Helbling and Steve Bakken presented updates about Mandan and Bismarck’s growth and economic indicators, city services and infrastructure projects and plans at the annual Chamber of Commerce State of the Cities breakfast last month.

Mandan noted the success of its Storefront Improvement and Renaissance Zone programs, along with its business outreach and educational events. The Mayor noted a consistent population rise with a current population estimate of 22,519.

The City remains in the middle of the top 13 cities across the state for utility rates and is committed to keeping mills modest as property valuations increase. Diesel spill remediation is nearing closure and street improvement projects on the agenda include the southside and mid-town east areas. Main Street is slated to undergo lane reallocations in 2020.

Bismarck Mayor Steve Bakken introduced a new event called the Capital City Christmas. The celebration will include breakfast with Santa, a tree lighting ceremony and a New Year’s Eve Gala. He went on to talk about the City’s continued attention to infrastructure maintenance and buildout. The half-cent sales tax, which was recently approved by voters, has already generated more than $3 million and will be spent on specific improvement projects throughout the town.

Copies of the presentations are available online at bit.ly/33rn5R1 and bit.ly/35JlCH1.

The City of Bismarck Community Development Department - Building Inspections Division will be hosting an open house on Dec. 11, 2019 from 2-4 p.m. to discuss the proposed update of the City of Bismarck Building Code and Fire Prevention Code.

The City of Bismarck Building Code consists of the International Building Code (IBC), International Residential Code (IRC), International Mechanical Code (IMC), International Fuel Gas Code (IFGC), International Existing Building Code (IEBC), and the International Energy Conservation Code (IECC). The Fire Prevention Code consists of the International Fire Code (IFC).

A brief presentation will begin at 2:30 p.m. and will provide a basic overview of the scope of each model code and significant amendments to the proposed City of Bismarck Building Code and Fire Prevention Code. City of Bismarck staff representing the Building Inspections Division and the Bismarck Fire Department will be available to answer questions before and after the presentation.

4 Design Features to Bring Nature into the Home People are attracted to nature, and growing evidence suggests that interacting with nature makes people happier and healthier. But with an average of 90% of our time spent indoors, it is easy to feel disconnected. Bringing nature inside the home with specifically targeted design elements can resonate with and draw in potential home buyers and remodeling clients.

A sunroom is a traditional indoor space designed to make you feel like you are outdoors. Think about how you feel when you are in a home’s sunroom — do you feel calmer and happier? Studies have shown that views of nature trigger more pleasure receptors in our brains than nonnature scenes.

This positive experience can be carried throughout the home by incorporating aspects of nature in design strategies and replicating natural patterns in a home’s finishes and design details. Four of these options are outlined below: 1. Use natural materials. Materials including wood, stone and bamboo draw nature into the home. These materials can be incorporated into floors, walls, support beams and ceilings. How these materials are used can also impact the effect on the homeowner. One study demonstrated that a difference in wood ratio on the walls of an interior space led to different physiological responses. Researchers found that a room with a moderate ratio of wood (i.e., 45% coverage) gave subjects a more “comfortable” feeling, exhibited significant decreases in diastolic blood pressure and significant increases in pulse rate.

2. Maximize daylight. People tend to be more productive and happier when exposed to light. Design strategies include orienting the building to capture the light and air while minimizing heat absorption. Window-wall ratio (WWR) charts show the right WWR to achieve good daylighting, including a north-south orientation and 50% WWR. Windows and skylights also offer a view to the outdoors and a visual connection with nature.

3. Add circadian lighting. Color, intensity and patterns of interior lighting can impact mood, alertness and sleep quality. Natural light patterns fluctuate between higher amounts of blue light during the day and lower amounts in the evening. Interior lighting can be designed to change to supplement available natural light during the day to optimize light levels. Other design strategies include programming the color of interior lighting during the day and evening, installing dimmable fixtures, using accent fixtures and incorporating diffused light.

4. Incorporate nature-inspired finishes and details. Adding wallpapers or carpets that include natural patterns such as flowers, leaves, shells or birds can make homeowners feel more connected with nature. Photos of landscapes, scenery, animals or flowers can also bring nature into the home. Finally, plants add a live nature element directly into the home.

For more details about NAHB’s sustainable and green building initiatives, contact Sustainability and Green Building Program Manager Michelle Diller. To stay current on high-performance residential building, follow NAHB’s Sustainability and Green Building team on Twitter.

Where did the time go?

As 2019 comes to a close and I look back on my year as President of ND Association of Builders, I am so very thankful for the opportunity. Serving as your President I have been able to work closely with NDAB and NAHB staff on several issues that affect our industry. I was able to give testimony at the 66th Legislative Session regarding the age issue that is a growing concern within our state. I was able to travel to Washington DC and meet with Senator Kevin Cramer, Senator John Hoeven and Congressman Kelly Armstrong to discuss issues we are facing on a national level. Although much was accomplished this year, there is still so much to do. I encourage all of you to get involved with your own or NDAB's Government Affairs Committee and help keep these issues in the spotlight in the coming years.

I would like to thank all of you that volunteer your time to serve on the NDAB Board of Directors, on Committees and those that participate at a National Level as well. We all know how valuable time is and your efforts and time away from family and professional commitments is very appreciated. I look forward to continuing to see some of you work within your new roles in the coming year.

I would like to thank the ND Association of Builders' staff. Kim and Sara have been very valuable during this years legislative session keeping the members involved and informed along the way. This past year they have also hosted several great meetings and events allowing local HBA's Staff, Members and Annual Partners to get to know each other better. These events also facilitate building relationships with local and state officials allowing members to have some great opportunities to visit with them in a causal and relaxed environment.

Finally, I would like to welcome Nate Applegren as your 2020 ND Association of Builders President. I am excited to serve under his excellent leadership in the coming year and trust that he will hold the Association and its member's interests in the highest priority.

Until next time, Bob Horab

December is a month full of emotions, full hearts and time to reflect on another year gone by.

This past yearhas been a time of growth for me, our office staff and the Association. While sometimes change can be hard, it is always a time for new experiences and making new friends. A big thank you to NDAB’s 2019 President, Bob Horab from the Western Area Builders Association for his leadership, hard work during the 2019 legislative session and being active at the national level.

On November 21 the NDAB Board of Directors and special guests gathered in Grand Forks to toast the successful past year and celebrate the future year ahead of us. 2019 NDAB President Bob Horab was thanked for his past years’ service and pinned with NAHB’s Past State President pin. 2020 NDAB President Nate Applegren from Forx Builders Association was sworn in and pinned with NAHB’s State President pin.

The North Dakota Association of Builders 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 is helping to push forth NDAB, NDAB-PAC and to help us to grow in our success. It has truly been a pleasure to work with you!

Outgoing Board Members: • • • • •

Bismarck-Mandan HBA: Rory Anderson, Eric Brenden HBA of Fargo-Moorhead: John Koerselman Minot Assoc. of Builders: Melissa Francisco Western Area BA: Joan Mainwaring, Jeremy Cox Dickinson Area Builders: Gene Kruger, Arnold Karsky

Congratulations to our 2019 state award winners and nominees that were also announced at the annual banquet: • Builders Engaging Associate Members (BEAM): Kochmann Brothers Homes, Inc.

• Associate of the Year: Eric Miller • Builder of the Year: Mike Dolbec • Membership Award: HBA of Fargo-Moorhead What an exciting year it has been! As 2019 goes down in the record books, we look forward to making new memories in 2020. Sponsorship opportunities are available, 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

With mortgage rates at a three-year low and a healthy job market, housing affordability rose to its highest level in three years in the third quarter of 2019, according to the NAHB/Wells Fargo Housing Opportunity Index (HOI) released today.

There, 89.3% of all new and existing homes sold in the third quarter were affordable to families earning the area’s median income of $67,000. Meanwhile, Monroe, Mich., was rated the nation’s most affordable smaller market, with 95.3% of homes sold in the third quarter being affordable to families earning the median income of $79,000.

In all, 63.6% of new and existing homes sold between the beginning of July and end of September were affordable to Rounding out the top five affordable major housing families earning the U.S. median income of $75,500. This is markets in respective order were Indianapolis-Carmelup from the 60.9% of homes sold in the second quarter of Anderson, Ind.; Youngstown-Warren-Boardman, Ohio-Pa.; 2019 that were affordable to median-income earners and Syracuse, N.Y.; and Harrisburg-Carlisle, Pa. slightly higher than a first quarter 2019 reading of 62.6%.

Smaller markets joining Monroe, Mich., at the top of the The national median home price remained steady at list included Cumberland, Md.-W. Va.; Davenport-Moline$280,000 in the third quarter, flat from the previous quarter, Rock Island, Iowa-Ill.; Kokomo, Ind.; and Elizabethtown-Fort but a jump from the first quarter when the median price Knox, Ky. was $260,000. At the same time, average mortgage rates fell San Francisco again ranked as the nation’s least from 4.07% in the second quarter to 3.73% in the third affordable major market. There, just 8.4% of the homes sold quarter, reaching a three-year low. in the third quarter of 2019 were affordable to families “With mortgage rates at historic lows, consumers are earning the area’s median income of $133,800. experiencing greater buying power and increased Other major metros at the bottom of the affordability affordability,” said NAHB Chairman Greg Ugalde, a home chart were located in California. In descending order, they builder and developer from Torrington, Conn. “Despite this included Los Angeles-Long Beach-Glendale; Anaheim-Santa positive development, builders still struggle with rising Ana-Irvine; San Jose-Sunnyvale-Santa Clara; and San Diegoconstruction costs due to labor shortages and excessive Carlsbad. regulations, which will continue to make housing All five least affordable small housing markets were also affordability a major challenge.” in the Golden State. At the very bottom of the affordability “While the Federal Reserve’s monetary policy has helped chart was Salinas, where 13.4% of all new and existing offset some of the rising construction costs, these homes sold were affordable to families earning the area’s headwinds are still affecting builders’ ability to increase median income of $74,100. inventory, particularly for entry-level buyers,” said NAHB In descending order, other small markets at the lowest Chief Economist Robert Dietz. “These higher production end of the affordability scale included Santa Cruzcosts and other factors have caused a major decline in housing affordability over the past few years, and we expect Watsonville; San Luis Obispo-Paso Robles-Arroyo Grande; Napa; and Santa Rosa. that to remain a concern going forward.”

Most and Least Affordable Housing Markets In the third quarter, Scranton-Wilkes-Barre-Hazleton, Pa., was the nation’s most affordable major housing market.

Visit nahb.org/hoi for tables, historic data and details.

In a victory for NAHB, the Department of Veterans Affairs (VA) has accepted our suggested revisions and clarifications regarding builder certification requirements for radon gas mitigation on properties located in Zone 1 counties. These counties have the highest potential radon levels. North Dakota is a Zone 1 state.

The IRS has released a draft version of the updated Form 8996, which is required to be filed by all Qualified Opportunity Funds (QOFs). The IRS indicated earlier this year that it would further update this form, and it is likely that a final version will be available prior to the end of the year. The draft form is available on the IRS website at https://bit.ly/2KlR2Lk.

Single-family lot prices reached a record high in 2018, with half of all lots selling at or above $49,500, according to NAHB's analysis of data from the Census Bureau's Survey of Construction. New England has the most expensive single-family lots, with a median price of $140,000. The East South-Central Division (Mississippi, Alabama, Tennessee, Kentucky) has the lowest median value at $38,000 per lot.

The Federal Emergency Management Agency (FEMA) announced it was deferring implementation of its new flood insurance risk rating program by one year until Oct. 1, 2021.

As NAHBNow has previously reported, FEMA, which oversees and implements the National Flood Insurance Program (NFIP), has initiated a long-term effort to transform the program to make it more consumer friendly and better reflect the actual risks properties face.

FEMA said today that it is deferring the implementation of the initiative, com monly referred to as Risk Rating 2.0. The agency had previously announced that new rates for all single-family homes would go into effect nationwide on Oct. 1, 2020.

According to the FEMA notice, additional time is required to “conduct a comprehensive analysis of the proposed rating structure so as to protect policyholders and minimize any unintentional negative effects of the transition.”

As a result, FEMA decided to defer the implementation of Risk Rating 2.0 until Oct. 1, 2021.

It is worth noting that this extension will now allow for all NFIP policies – including, single-family homes, multi-unit and commercial properties – to change over to the new rating system at one time. The originally proposed phased approach would have only resulted in new rates for all singlefamily homes to go into effect nationwide on Oct. 1, 2020.

NAHB will continue working with FEMA staff to develop industry-specific briefings and resources throughout the process. Please continue to look to NAHBNow for further updates as they occur.

For more information — including FAQs developed by FEMA — visit NFIP Transformation or contact Tamra Spielvogel at NAHB at 800-368-5242 x8327.

Across the country, BUILD-PAC Trustees have been busy spreading the word about the importance of members getting involved in the political process.

BUILD-PAC, NAHB’s political action committee, works to elect pro-housing, pro-business candidates to federal office. Nearly 150 NAHB members serve on BUILD-PAC’s Board of Trustees.

BUILD-PAC Trustees have hosted over 50 state and local fundraising events in 2019 to strengthen BUILD-PAC’s presence throughout the Federation.

These events help raise funds to support federal legislators in both the House and Senate. BUILD-PAC’s fundraising efforts are heating up as we get closer to the 2020 presidential election year.

BUILD-PAC is housing’s voice in the 2020 elections. When a builder, remodeler or trade partner writes a personal check to a federal candidate’s campaign, there is just one voice behind it; however, there are more than 140,000 voices are behind every check that BUILD-PAC writes. It is important during this critical election cycle that BUILD-PAC has enough resources to help elect prohousing, pro-business candidates to Congress.

For more information on BUILD-PAC visit nahb.org/buildpac.

The Federal Housing Administration (FHA) released its annual report to Congress that shows the agency’s capital reserve ratio grew by more than $27.5 billion in fiscal 2019 to a total economic net worth of $62.38 billion.

In a sign that the housing recovery continues to make gains, the independent actuarial analysis shows that for the fifth straight year, FHA’s reserve ratio of its Mutual Mortgage Insurance Fund (MMI fund) has exceeded the congressionally mandated 2% threshold. The capital reserve ratio soared to a 12-year high of 4.84% this year from 2.76% in 2018.

“The financial health of FHA’s single-family insurance fund is as sound as it has been in over a decade,” HUD Secretary Ben Carson said in a press release.

The MMI fund’s growth was fueled by the Single Family Forward Portfolio program, which posted a capital ratio of 5.44% and a positive economic net worth of $66.6 billion.

These gains were partially offset by losses in the volatile reverse mortgage portfolio, which posted a negative capital ratio of 9.22% and was valued at minus $5 billion. However, FHA Commissioner Brian Montgomery noted, “The improvements we’ve begun to put in place in the last two years to stem the losses of the reverse mortgage portfolio, aided by favorable economic conditions, are contributing to some improvements in our reverse mortgage portfolio.”

The report noted that the FHA mortgage insurance program continues to serve as an important facilitator of nationwide mortgage credit availability and access to homeownership, particularly for first-time buyers, but that FHA must continue to monitor emerging risks, such as borrowers with high debt-to-income ratios and the use of down payment assistance programs.

Median single-family lot prices in 2018 outpaced inflation (4.4% vs 2.4%) and reached a new record high, with half of the lots selling at or above $49,500, according to NAHB’s analysis of the Census Bureau’s Survey of Construction (SOC) data.

family spec homes of $49,500. This represents a significant jump in the division lot values since the building boom when more than half of lots were priced under $30,000.

Single-family spec homes started in New England are built on some of the The most dramatic rise in lot values most expensive lots in the nation. Half was observed in the West South Central of all sold single-family homes started division where median lot values more in New England in 2018 reported lot than doubled since the housing boom values in excess of $140,000, a new years. nominal record for the division. New England is known for strict local zoning While this constitutes a new nominal regulations that often require very low national record, lot values adjusted for densities. inflation have not reached the housing Therefore, it is boom peak levels. During the building not surprising boom – when twice as many singlethat typical family homes were started – half of the single-family lots were selling above $43,000, which spec homes is equivalent in purchasing power to started in New more than $53,000 in 2018.

England are built A Geographic Breakdown on some of the largest and most The West South Central division – which expensive lots in includes Texas, Oklahoma, Arkansa and the nation.

Louisiana – stands out as a division where new historical records were hit The Pacific not only in nominal terms but also division has the when adjusted for inflation. Compared smallest lots. to the peak years of the housing boom, However, the lot values more than doubled in this median lot value division. reached $87,000 in 2018, the Historically, lot values in the West South second most expensive value in the Central division have been the lowest in nation and a new nominal record for the nation. They started rising in 2013 the division. As a result, the Pacific and by 2015 caught up with the division lots stand out for being most national median. As of 2018, half of the expensive in the nation in terms of per lots in the West South Central division acre costs. sold for more than $62,000, 25% above the national median lot value for single-

The East North Central is another division that hit a new record high, with half of the lots priced above $52,000, exceeding the national median lot value for single-family spec homes.

The East South Central Division that has the second largest lots in the nation simultaneously reports the lowest median value of $38,000 per lot, thus defining the most economical lots in the nation as well as lowest per acre costs.

This analysis is limited to single-family speculatively-built homes by year

started and with reported sales prices.

For custom homes built on owner’s land with either the owner or a builder acting as the general contractor, the corresponding land values are not reported in the SOC. Consequently, custom homes are excluded from the analysis.

NAHB’s Election 2020 series kicked off Nov. 18, in Minneapolis with a robust discussion of how municipalities are tackling the housing affordability crisis.

The Minneapolis-St. Paul metro area has been thriving in recent years, with a number of Fortune 500 companies contributing to the economic health of the region. But as people flock to the Twin Cities area in search of career opportunities and urban living, a shortage of affordable housing is pricing residents out of owning homes and driving up the cost of rent.

More than three out of four millennial home buyers (76%) say that their most wanted bathroom feature is both a shower stall and tub in the master bath, according to a recent report published by NAHB, What Home Buyers Really Want (2019 edition).

The survey indicates that millennials want larger bathrooms to accommodate certain amenities. For example, the second most popular bathroom feature among this key demographic is a double vanity (75%), followed by a linen closet in the master bath (73%), a whirlpool tub (70%) and a private toilet compartment in the master bath (68%).

A dressing/make-up area and a white toilet, tub and sink are also important to millennials, with 67% reporting that each of these items are desirable or essential/must have features.

Millennials also expressed interest in having specific shower features: 66% want multiple shower heads in a master bath and 64% desire a body spray panel in a master bath [shower head(s) plus spray massage jets].

A majority of millennials also prefer a granite vanity (64%).

Minneapolis’ 2040 plan, which makes Minneapolis the first major U.S. city to end singlefamily zoning, provides an example of one ambitious solution for a future of more equitable housing access. Speakers will examine topics such as the short- and long-term effects of this plan, how continued housing shortfalls could impact the future economy of the surrounding region and what support the private sector can provide to address local housing inequity.

This situation is not unique to Minneapolis, however, as leaders across the country search for forward-looking solutions to tackle housing inequities in their own back yards. NAHB Chairman Greg Ugalde and Deborah Myerson, principal at Myerson Planning & Development Consulting and author of NAHB’s How Did They Do It? Discovering New Opportunities for Affordable Housing report, discussed trends in housing and housing affordability, including how today’s housing needs are shifting, and the types of housing and support required to meet those needs.

Watch the replay online at https://thehill.com/ event/468158-building-the-dream-minneapolis.

The report also reveals a wide disparity among bathroom wants between millennials and seniors, including at least a 20point difference among these two demographic groups on a variety of bathroom features.

For example, 46% of millennials desire dual toilets in the master bath while just 14% of seniors prefer this feature. Fifty-five percent of millennials want his and hers baths vs only 25% of seniors and 70% of millennials want a whirlpool tub in a master bath, compared to 44% of seniors.

NAHB economist Carmel Ford provides more insights in an Eye on Housing blog post online at https://bit.ly/2NDierl.

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Builders Social ∙ December 11, 2019 5:00 PM - 7:00 PM ∙ REGISTER ONLINE AT BMHBA.COM/EVENTS Free Food & Drinks ∙ Free to Attend

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