December 2014 Building Buzz by Bismarck-Mandan Home Builders Association

BB BUILDING BUZZ DECEMBER 2014 President’s Letter

Final Remarks from 2014 Board President | page 3

Focus on Education

Don’t Miss Webinars and IBS Education | page 7

BMHBA News

Roosevelt Riles Crowd at Fall GMM | page 8-9

National News

Immigration, Starts and Codes | page 10

NDAB News

Thank You 2014 | page 14

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BMHBA Building Buzz

December 2014

Building Buzz Publisher/Editor: Dot Frank Layout Editor: Chelsea Gleich Building Buzz is a publication of the Bismarck-Mandan Home Builders Association 2600 Gateway Ave., Suite 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730

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Professionals building our community through promotion of home ownership, education and legislation since 1958.

Bismarck-Mandan Permit Reports Through October 2014 BISMARCK - monthly/yearly permit reports can be found at www.bismarck.org Permit Type

YTD 2014

YTD 2013

New Residential Single Family Detached Single Family Attached Duplex 3 or 4 Unit 5+ Unit Residential Garages New Commercial Alter Public

477/$135.23M 292/$53.83M 160/$23.92M 11/$1.75M 1/$1.01M 13/$54.72M 83/$.712M 34/$12.19M 6/$16.58M

620/$131.63M 394/$71.56M 201/$29.93M 9/$1.71M 3/$1.33M 13/$27.10M 90/$.878M 45/$15.16M 15/$38.90M

MANDAN - monthly/yearly permit reports can be found at www.cityofmandan.com Permit Type

YTD 2014

New Residential Single Family Duplex/Condo Apartments Remodel and Additions New Commercial Alter Commercial

124/$54.44M 111/$23.50M 8/$2.23M 5/$28.71M 120/$2.77M 39/$16.17M 32/$3.04M

YTD 2013

204/$82.35M 152/$43.25M 44/$9.66M 8/$29.44M 123/$2.28M 17/$9.10M 22/$8.17M

December 2014

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BMHBA Building Buzz

A Word from Our President It’s with mixed emotions that I write my final column as your association president. The past year must have been fun, because it flew by! I’m hoping that, like me, you can look back on 2014 with fond memories. We’ve experienced many changes since I was sworn last January. Together we’ve: 1. Welcomed two new staff. 2. Renovated the BMHBA office. 3. Created a building officials Vance Vetter roundtable event. Board President 4. Improved membership renewal and billing systems. 5. Ramped up social media marketing and communications. 6. Started a talk-radio program. 7. Launched a smartphone app for the Parade of Homes. 8. Introduced a text messaging options to submit questions at events. 9. Dramatically increased event attendance. I look forward to keeping the momentum going as your past president. On Nov. 25, our members voted in several new board members. Congratulations and welcome Parker Pladson of Venture Building Company, Jeff Sattler of Sattler Homes and Susie Franklin of Capital Credit Union. I know that you’ll bring renewed energy and new ideas to the table. I’d like to acknowledge our outgoing board members Eric Brenden of Northwest Contracting, Scott Moran of Hallmark Homes and CJ Schorsch of Fleck’s Furniture and

Appliance for their service and contributions. They were an asset throughout the transformation of this association. In addition to the time and attention board, committee and general members gave throughout the year, I’d be remiss to not extend a special thank you to our sponsors. Your financial contributions beyond dues drive the work that our association performs. Whether it was at our Annual Banquet, Bowling with the Builders, Picnic, GMMs, Golf Tournament or more, non-dues revenue afforded us the opportunity to actively advocate at the city and county, support builder-friendly candidates, host educational sessions and promote home-ownership. I encourage you to continue to give back to the industry that supports you. As Teddy Roosevelt said decades ago, and last month at our GMM, “Every man owes a part of his time and money to the business or industry in which he is engaged. No man has a moral right to withhold his support from an organization that is striving to improve conditions within his sphere.” Thank you for giving me the opportunity to serve you as the 2014 board president. I look forward to seeing you all at our Annual Banquet as we welcome new leadership and launch another successful home building season. Vance Vetter

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Three Elected to BMHBA Board

Association members recently elected three members to serve on its board of directors. Parker Pladson and Jeff Sattler were elected to two open builder board seats and Susie Franklin was chosen to fill an open associate seat. The new board members replace outgoing board members Eric Brenden, Scott Moran and CJ Schorsch. Pladson is the owner of Venture Building Company. Sattler is the construction manager for Sattler Homes. Franklin is a mortgage loan servicer/underwriter for Capital Credit Union. The new board members’ three-year terms begin January 1, 2015.

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BMHBA Building Buzz

October 2014 New Members Alliance Concrete, LLC | Ryan Wisdom Concrete Contractor

Arvig | Rachel Laudenbach Exquisite Lifestyles, LLC | Jamie Cox Home Furnishings

Vance Vetter Homes | Katie Wiedrich

www.vancevetterhomes.com

Home Builders (Custom)

Legacy Landscaping and Design, LLC | Tylor Doll www.legacylandscapingnd.com

Landscaping

M & E Sales | Kevin Mach Home Furnishings, Health

Spot-A-Pot | Mike Bitz

www.spot-a-pot.net

Home Furnishings, Health

Valor Insulation Co. | Kyle Hillerud Insulation

December 2014

2014 Board of Directors PRESIDENT Vance Vetter Vance Vetter Homes Phone: (701) 751-8218

PAST PRESIDENT Eric Brenden Northwest Contracting Phone: (701) 255-7727

SECRETARY/TREASURER Lynn Klein Gate City Bank Phone: (701) 355-7633

Paula Haider Haider Glass Specialties Phone: (701) 250-6787

1ST VICE PRESIDENT Drew Knutson Knutson Homes, Inc. Phone: (701) 258-3464

Nathan Jones Tollberg Homes Phone: (763) 205-2037 Scott Moran Hallmark Homes Phone: (701) 471-8796 Bill Schmid Townsquare Media Phone: (701) 250-6602

2ND VICE PRESIDENT Greg Zenker Ferguson Enterprises Phone: (701) 663-2446 Chad Moldenhauer K & L Homes, Inc. Phone: (701) 258-4584 Shannon Reichenberg Diversity Homes Phone: (701) 220-8177 C.J. Schorsch Fleck’s Furniture & Appliance Phone: (701) 323-0891

December 2014

BMHBA Building Buzz

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What Can Beige Do For You? By Wayne Solberg, Owner, One Source Lighting-Bismarck

When many people think of beige, an interior design color may come to mind. When bankers think of beige, more than likely they think of "The Beige Book", a current economic conditions report published eight times per year by each of the twelve Federal Reserve Banks (FRB) in the U.S. We live and work in the Minneapolis Federal Reserve ninth district, covering North and South Dakota, Montana, Minnesota, northwestern Wisconsin, and the Upper Peninsula of Michigan - 1,800 miles east to west; 409,291 square miles, 9 million people, 12 percent of our country's land, and just 3 percent of our country's people. Here's a snapshot of happenings in the 9th Federal Reserve District North Dakota since the August: Consumer Spending and Tourism • Consumer spending increased moderately; strong vehicle sales in NE Montana; and tourism activity was up from last year.

Construction and Real Estate • The value of August housing permits decreased significantly in Bismarck from a year ago. (Albeit, last year was an extraordinarily strong year)

Services • Some increases from a year ago in bidding activity for government and industrial projects. • Capacity constraints in freight rail have increased demand for trucking services. Manufacturing • North Dakota manufacturing index increased in September from August. • CHS, the nation's largest farmer-owned cooperative, announced that it will move ahead in building a $3 billion fertilizer plant near Jamestown, ND. The plant is expected to require about 1,500 construction

workers, and will have 160 to 180 permanent employees.

Energy & Mining • North Dakota Late-September oil and gas exploration activity increased, being on level with Montana from a month earlier. North Dakota production remained at record levels. • Hiland Partners, will build a 462-mile pipeline from the Bakken oil fields to a hub in Wyoming. • Dakota Plains Holdings, Inc., and a joint venture partner announced a $5.5 million expansion for oil storage in New Town, North Dakota, to be operational by summer 2015. • Freight rail congestion was leading to increased stockpiles of various commodities, as locomotive crews and cars were in short supply Agriculture • The most recent USDA forecast calls for substantially increased production of corn and soybeans this year in District states compared with 2013. • Livestock and dairy producers continued to benefit from lower feed costs and high output prices. • Most of the district’s crops were in good or excellent condition despite late planting. • Relative to a year earlier, prices received by farmers in September were lower for corn, soybeans, and wheat; prices increased for hay, cattle, hogs, poultry, and milk. Employment, Wages, and Prices • Labor markets continued to show signs of tightening since the previous report. • Difficulty finding truck drivers to fill open positions. The Beige Book can be accessed on the Minneapolis Federal Reserve website, http://www.federalreserve. gov/monetarypolicy/beigebook/default.htm.

Don’t Miss These Upcoming Events!

Dec. 9: Events Committee Meeting Dec. 11: Holiday Open House Dec. 17: Membership Committee Meeting

Dec. 19: Executive Committee Meeting Dec. 23: BMHBA Board Meeting

Merry Christmas and Happy New Year!

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BMHBA Building Buzz

December 2014

Member Minute: BMHBA Members in the News Acme Tools Expanding in Bismarck Expansion Adds Space for Service Development and Acme Rents Acme Tools is constructing a 6,000-squarefoot addition to its store on East Bismarck Expressway. The addition will expand the current service department and provide additional capacity for Acme Rents, a division of Acme Tools. The expansion project is scheduled for completion in December. Serving South Central North Dakota since 1976, Acme Tools opened at its current location in 2004. The Bismarck store features a 13,000-squarefoot showroom - the largest tool and equipment showroom in the region. Founded in Grand Forks in 1948, Acme Tools has

more than 65 years of industry experience and today is a multi-channel, premier retailer of tools and equipment with some of the largest showrooms in the country. The company stocks over 180,000 products from 3,500 manufacturers. Acme Tools has 10 retail stores in North Dakota, Minnesota and Iowa. More information is available at AcmeTools. com.

Bianco Realty Sales Awards

Bianco Realty has named Shirley Thomas and Darcy Fettig Associates of the Month! Shirley and Darcy had the most closed sales at Bianco Realty for the month of Shirley Thomas Darcy Fettig October 2014. Shirley has been a licensed REALTOR® since 2001 and Darcy has been a licensed REALTOR® since 1993.

NAHB Staff Attend Bismarck Event

Two members from NAHB attended an event sponsored by the BMHBA in November. Environmental Policy Program Manager Owen McDonough and Lobbyist Courtney Briggs attended the Waters of the US event on Nov. 10 at the BSC National Energy Center of Excellence. McDonough was one of the featured panelist who spoke of the negative consequences of the EPA’s proposed new definition for waters of the United States. He joined other industry spokespeople

including the US Chamber of Commerce, North Dakota Farmers Union, ND Lignite Energy Council and North Dakota Water Users Association.

Owen McDonough, NAHB

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BMHBA Building Buzz

December 2014

Focus on Education Don’t Miss These IBS Learning Opportunities The possibilities to grow your knowledge at the 2015 International Builders’ Show® are countless. Formal courses, roundtables, education sessions, Centrals and networking can help you build skills and contacts, and earn valuable NAHB designations and continuing education (CE) credits, including AIA. Members seeking specific training or a NAHB professional designation should enroll in Pre-Show Courses on topics like Business Operations, Green Building, Remodeling, Sales and Marketing and more, held Jan. 17-19. Members receive a free expo pass when they register.

Or members can be inspired at the Designation Achievement Reception, celebrating the work NAHB designees and instructors have done in 2014. New designees will be recognized for their achievements, and awards will be given for Designees and Instructors of the Year. Finally, if you have any questions about NAHB Education or events, the place for answers is the NAHB Education booth, located in the Member Advantage area, Central Concourse. Education Team members will be on hand to offer assistance – plus some great freebies, games and photo opportunities with the Geico Gecko!

The following webinars are available for NAHB members through NAHB.org. For log-in information contact the BMHBA at 222-2400 or info@bmhba.com.

Build Client Confidence & Increase Green Home Sales

Upcoming NAHB Webinars

Sherwin-Williams Colormix 2015

Wed., Dec. 5, 1-2 p.m. Color trends are about discovery, influence and inspiration. Color experts will share their color observations and translate the 2015 color trends to help you make the critical exterior and interior choices that are sure to be most appealing to your customers Presented by NAHB Land Use and Design

Thurs., Dec. 11, 1-2 p.m. After you meet all of the requirements for green certification and all the boxes are checked, what comes next? This program will cover opportunities that will help you incorporate sustainable design and building principals into your business in a way that will pique client interest. In addition, panelists will examine the dos and don’ts of effective sustainability messaging that can increase green home sales. Presented by NAHB Green

Make Better Business Decisions with Free HMI Webinar After a slight September drop, builder confidence in the market for newly built single-family homes rose again four points to 58 on the NAHB/Wells Fargo Housing Market Index (HMI), released Nov. 18. Will the momentum continue? Find out on Monday, Dec. 15, at 10 a.m. for the quarterly NAHB/Wells Fargo Housing Market Index (HMI) Webinar. NAHB Chief Economist Dr. David Crowe will provide key numbers and comparisons from previous months. He'll then offer insights into what they mean for the residential construction industry. This data will better inform members’ business planning and decision making. Sponsored by Wells Fargo Home Mortgage, this 30-minute webinar is complimentary, but registration is required. For more information and to register, please visit nahb.org/ HMIWebinars. And listen to September’s HMI webinar to prepare for the December report. Future webinars are set for March and June 2015.

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BMHBA Building Buzz

December 2014

Roundtable Brings Builders and Officials Together

Close to 70 people filled the Bismarck Public Works Building on Nov. 20 for the Building Officials Roundtable event. The roundtable events are intended to bring Bismarck, Mandan, Lincoln, Burleigh and Morton County officials together to discuss building concerns and opportunities. Representatives from each municipality was in attendance except Burleigh County and Lincoln who expressed their regrets. Among the issues addressed were Bismarck’s continued work to release an online permitting program, the announcement of Mandan’s active online permit program, specifics regarding the new sheetrocking requirement for basements and insight on energy-efficiency and green building requirements. The BMHBA introduced a new meeting feature

called Poll Everywhere that allowed participants to text questions for the panelists live that appeared on a large screen behind the speakers. Another building officials roundtable will be hosted in the spring to provide updates on the summer construction season.

Annual Banquet Registration Opens

Online registration is open for the association’s Annual Banquet. The Annual Banquet features the installation of new board members, recognition of departing board members, a look back at association and industry accomplishments from 2014 and a preview of the activities and issues awaiting in 2015. One of the association’s largest social events, the Annual Banquet will take place at the Ramkota Hotel on Friday, Jan. 16

Let’s Build Together. When it comes to building a home, there are a lot of decisions to be made; counter-tops, flooring, lights! But when it comes to your closing, we’ve got you covered. We deliver the peace of mind you need to allow you to focus on what really matters - your new home. Our mission is to provide the best service in every market in which we participate. So give us a call - We'll take care of the rest.

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Front: Cat, Juanita, Georgie, Stephanie, Colette | Back: Kyle, Wayne and Becky

Greetings from the team at One Source Lighting! We are excited to be bringing you distinctive lighting styles and friendly personal consultations.

Wishing you a Merry Christmas! Come see us now and in the New Year! Corner of Mandan St. and Broadway Ave., Bismarck 701.258.4400

December 2014

BMHBA Building Buzz

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Roosevelt Riles Crowd at Fall GMM Theodore Roosevelt, the 26th President of the United States, was the keynote speaker at the Fall GMM and Elections event on Nov. 25. Appearing at the Elks Lodge in front of an audience in excess of 100 people, Teddy shared stories of his days in North Dakota, his experience building his personal residence, his pride in perseverance and his support for associations. In addition to reciting legendary stories, Roosevelt told a lighter tale of the Teddy Bear and bestowed one based on his likeness to Board President Vance Vetter. The GMM featured more than Teddy Roosevelt; it included the Bismarck State College check presentation to fund three $1000 scholarships, the introduction of the 2014 scholarship recipients and board elections. Students Tyler Schimke from Herdsfield and Thomas Nicolson of Dawson each received a $1000 Carpentry Program Scholarship and Matthew Masset from Bismarck received a $1000 HVAC Program Scholarship. Board nominees included Parker Pladson of Venture Building Company, Jeff Sattler of Sattler Homes, Susie Franklin of Capital Credit Union, Jeff Squire of Cardinal Cleaning and floor nominee Marc Menge. Pladson, Sattler and Franklin were the successful candidates and will

Silent Auction Items Sought

Support the BMHBA Scholarship Fund and promote your business at the same time! Donations are currently being accepted to help stock the silent auction at the association’s Annual Banquet on Jan. 16. Proceeds from the silent auction support the three $1000 scholarships that the BMHBA funds through the Bismarck State College Foundation. Last year’s silent auction featured more than 30 items with a retail value over $2700. All donations are appreciated and may be delivered to the association office any time. Members also are encouraged to share their intent to contribute an item online through the Annual Banquet registration form at bmhba.com/events. Association staff would be happy to pick up silent auction items upon request.

be installed as board members at the Annual Banquet on January 16. The association thanks all of the members who attended the event and is especially thankful for the sponsors, which included Gold Sponsor: North Dakota Guaranty & Title Company; Silver Sponsors: Garage Logic, Hopfauf Custom Builders, Kirkwood Bank & Trust, Miller Insulation Company and Vance Vetter Homes; Bronze Sponsors: BMHBA Board President Hallmark Homes and TK Vance Vetter Homes; and Brick & Mortar Sponsors: Century 21 Landmark – Amy Hullet and Superior Insurance. Find all of the event photos online at www.facebook. com/bmhba.

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BMHBA Building Buzz

December 2014

National News NAHB Responds to Obama’s Immigration Action Responding to President Obama’s Nov. 20 executive order on immigration, NAHB Chairman Kevin Kelly issued the following statement: “While President Obama’s executive action may provide relief for a portion of the estimated 11 million undocumented immigrants residing in the U.S., this piecemeal approach to immigration reform is no

long-term answer. It could be overturned by a future administration and it puts employers in a precarious position with regard to uncertain employment verification requirements. The only way to enact comprehensive immigration reform is for Congress to provide a legislative answer.”

Single-Family Starts Up 4.2% in October

Single-family housing production in October reached its highest level since November 2013 while the more volatile multifamily sector brought combined nationwide starts activity down 2.8% to a seasonally adjusted annual rate of 1.009 million units, according to newly released figures from the HUD and the U.S. Census Bureau. “The rise in single-family starts is more proof that the economy is firming and consumer confidence is growing,” said NAHB Chairman Kevin Kelly. “We expect continued upward momentum into next year.” “The increase in single-family starts shows that the housing market continues to recover at a steady, gradual pace,” said NAHB Chief Economist David Crowe. “On the multifamily side, production is stabilizing above historic levels as demand for rental housing increases.” The 2.8% decline in overall starts in October was due primarily to a 15.4% decline on the multifamily side,

which brought that sector’s annual production pace to 313,000 units on a seasonally adjusted annual basis. Meanwhile, single-family starts posted a 4.6% gain to 696,000 units.

New Code Cost Requirement Benefits Builders and Buyers

In a big win for NAHB and the home buyers we represent, the International Code Council (ICC) has taken a significant step forward in ensuring that code change proposals come with price tags. In its press release announcing the opening of the 2015/2016/2017 code development cycle, ICC also announced that it will require all advocates to include the costs associated with any proposals introduced along with the paybacks, where appropriate. It’s exactly what NAHB Chairman-elect Tom Woods asked for when he addressed the ICC board on Sept. 29 and called on code change proponents to provide “quantitative information regarding the magnitude of the

expected increase in construction costs.” In an official statement lauding the ICC ruling on cost estimates, NAHB Chairman Kevin Kelly said: “NAHB commends the ICC for approving this landmark ruling that will require all code change proposals to include cost estimates. By acknowledging that costs are an important factor in determining the merit of code change proposals, this will make the building codes process more cost-effective and affordable. In turn, this will help keep housing costs down, enable builders to construct more energy-efficient homes and allow more young families to enter the new home buying market.”

December 2014

BMHBA Building Buzz

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National News Much Electricity Use Traceable to Household Behavior By Paul Emrath

The people moving into a new home and their behavior can easily have a larger influence on energy consumption than items a builder may be able to control, according to research recently published by NAHB. The NAHB research is based on the U.S. Energy Information Administration’s latest Residential Energy Consumption Survey data. A previous post showed how these data can be used to breakdown energy consumption by age of the home. This post discusses a statistical model developed by NAHB to estimate the amount of electricity used for something other than heating, ventilation or air conditioning (HVAC). Non-HVAC electricity is important, because it accounts for more than 70 percent of a home’s total energy use, and is not as obviously related to the characteristics of a home as the home’s size or its insulation. The model can be used to define a baseline home with average characteristics that uses electricity for cooking and water heating and consumes about 28 million BTUs of electricity a year for something other than HVAC. The figure below shows how doubling the size of the home and adding or increasing the capacity of items usually provided by a builder (e.g., a water heater or ceiling fans) adds 5.5 million BTUs per year onto the baseline. The largest individual effect comes from the extra-large water heater. The pure effect of doubling the size is positive,

but quite small. Of course, even if installed by a builder, choice of the item may be heavily influenced by local availability, code requirements, and customer preferences. The next figure shows how items usually purchased separately by home owners without builder involvement can easily increase electricity use by more than this. The values were chosen to be above the typical baseline, but

still within a range that occurs fairly often in practice. In total, these household-purchased items increase annual energy use by 11.9 million BTUs, about twice as much as the builder-installed features.

As the next figure shows, the impact of household characteristics and behavior can be even larger. Again, the numbers are above average but still generally in a realistic range. An aggressive assumption of doubling income is shown, primarily to show that the effect of income is relatively modest compared to some of the other items in the figure. In total, these household characteristic and behavior changes add more than 21 million BTUs onto the 28 million BTU baseline.

For assumptions about the baseline home and details of the statistical model used to estimate energy consumption, see the full Special Study, available on NAHB’s HousingEconomics.com website.

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BMHBA Building Buzz

December 2014

National News Asking Prices for Houses Accelerate in 40 Metro Arease By Quentin Fottrell Personal Finance Reporter, MarketWatch. com

Home prices may be plateauing across the U.S., but the increase in asking prices for homes has accelerated in 40 of the nation’s largest 100 metro areas in October compared to last year. New research suggests an improvement in slowing national house prices may be in the cards by the end of the year. The asking prices for homes rose 1% nationally in October over the previous month and increased 6.4% annually in October, which was still down from the 10.3% annual rise in October 2013, according to the latest data from realestate website Trulia’s “Price Monitor.” Although homes often sell for below and sometimes above asking prices, they’re an early leading indicator of house prices and lead final sales prices by around

two months or more, says Jed Kolko, chief economist at Trulia, and adjust for the mix of listed homes. While price gains slowed in 60 metro areas and accelerated in 40 of them, the actual asking prices only fell in 9 metro areas. The acceleration in asking prices is concentrated in the Midwest and the south, while the slowdown is mainly in the west coast and Las Vegas. Prices didn’t Locally, prices have also experienced year-over-year accelerate more than 10 percentage gains. Single-family home prices have increased points in any metro area — Dayton, 9.2% from $233,359 in 2013 to $25aa4,945 in Ohio, came the closest with a 9.1 2014. Conversely, the value of new construction has percentage point drop, but prices experienced a decrease on a per permit basis. The slowed by more than 10 points in average value of each permit in 2013 was $193,953 12 metro areas, most dramatically in Las Vegas (which had a 21.8 versus $190,284 in 2014. point drop). Source: BMDA October 2014 Economy-at-a-Glance

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December 2014

BMHBA Building Buzz

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National News Millions of New Households Could Soon Form demand will bounce back, possibly even causing household growth to outpace population growth.” Stagnant incomes and rising rents left the US with an That added demand will, in turn, he continues, “create unprecedented number of doubled-up households as more incentive for builders to construct more homes, and people moved in together to make ends meet. That is will help unblock the market. There is no magic bullet, according to locally based Zillow. but continued home affordability, an increasing supply The firm says that all those roommates have changed the of both for-rent and for-sale homes and the potential for American housing landscape, incomes to grow more quickly with 5.4 million households as the economy recovers will all that would exist under normal “Like a coiled spring, all of help the market to realize this conditions instead lost in these doubled-up households potential.” guestrooms and basements, There is an increasing number represent tremendous potential sharing space with friends, of baby boomers who are selling family and roommates, waiting energy for the market,” their homes and moving into for better economic times. says Humphries. apartments, driving additional According to Zillow analysts, multifamily demand, says more than a third of working Goodman. adults are living in doubledThere is definitely a “silver lining” when it comes to up households, driving the median household size up to the demand for apartment living, Gary Goodman, SVP 1.83 adults in 2012 from 1.75 in 2000. The phenomenon of acquisitions at Passco Cos. tells GlobeSt.com. “As job is concentrated in markets where rent has most outpaced growth improves, those that were forced to double up income, notably in California and Florida, says Zillow. during the recession are now parting ways, and are getting In the Riverside, CA metro area, for example, under their own places.” In addition, he says, “those in the Gen normal conditions, there would be 12.6% more X and Millennial generations are now moving out of their households. In the Miami metro, more than 230,000 parents’ homes to rent for the first time. Interestingly, we households—11.3% more households than currently are also seeing an increasing number of baby boomers exist—were lost as people doubled up. As the housing market becomes friendlier for buyers and who are selling their homes and moving into apartments, driving additional multifamily demand.” the economic recovery continues, those lost households For many, Goodman continues, “owning a home could represent a significant source of pent-up demand today is simply not an option due to student debt, strict in the market as they begin to look for a new place to live, underwriting requirements, and not to mention the hefty Zillow analysts say. “The rise in doubled-up households down payment requirements. The home ownership rate is a troubling sign of the times and starkly illustrates one continues to decline, and is currently the lowest it’s been of the prime drivers behind weak home sales these days,” says Zillow chief economist Dr. Stan Humphries. “But there in 19 years, at 64%.” Many home owners, he adds, are also selling because is a silver lining behind this data.” they don’t want to deal with the headaches of owning Humphries explains that “like a coiled spring, all of these a home anymore. “Despite the fact that the economy is doubled-up households represent tremendous potential getting better, people are simply not gravitating toward energy for the market. If and when these compressed single family home ownership. And with the home market households begin to unwind and these millions of continuing to be flat, the interest in the rental market Americans do start to create their own households, continues to climb.” By Natalie Dolce, GlobeSt.com

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BMHBA Building Buzz

December 2014

NDAB NEWS

Volume XXI, Issue 25

Monthly News from the North Dakota Association of Builders

Thank You, 2014!

A Year in Review First and foremost I need to say Thank You to Kim Schneider and Heather Austin. This incredible team came on last December and January and helped pick-up the pieces from us not having an EO for half of a year. They had to clean up, rebuild, create new processes, and fine tune the old processes. Ken Callahan NDAB President

Kim had a few goals for 2014 that coincided with my goals such as introducing Kim to all local EO’s across the state; rolling out a new PAC process, and meeting the local members. We put together a plan to go on a tour, visit each local, and introduce Kim to their board and members. At the same time we provided them the new PAC process and presented them their PAC goal and their current goal status. We also asked LeRoy Kurtyka and Arnold Karsky to join us and they split the state and attended several local meetings each. This team effort helped us reach our goals and they all need to be thanked. At each local meeting before we left they all reached their PAC goals. As we look back how remarkable this was, for each local to reach their goals, we couldn’t have done this without the help from Don Dabbert and Kim Schneider, so a special thanks for them!! Another goal was to open up communications and help educate the local presidents. We started president meetings last November and met three times in person and had several conference calls over this past year. One of our goals besides understanding what each local does, and how they execute their events, was to share best practices. This was a huge success as we learned how each local executes their events, the details on their processes, and their timelines. Another goal was to help North Dakota become number #1 in NAHB PAC goals. When we first started these tours, when Eddy Mitzel was president in 2012, we became more focused and as a result of the tours each local tried harder to promote PAC and North Dakota finished second in the NAHB Delegate challenge for 2013. In 2014, our delegate goals we’re doubled, however, with the incredible team we have we surpassed this goal individually and as a team and finished at the top of NAHB PAC Delegate challenge. With our success meeting our PAC goals we were able to fund many candidate in this last election. NDAB supported 46 men and women running for offices across the state, and we were successful in our support with 44 out of 46 candidates winning their races.

December 2014

December always seems to sneak up quickly on me and I always find myself reflecting on the year that seemed to just have flown by. 2014 has proven to be quite a memorable year for me. December 2, 2013 was my official first day on the job. I was given the task of filling some big shoes as the past Executive Officer held her post for 16 years. The Board of Directors were all incredibly welcoming and supportKim Schneider NDAB Executive Officer ive of my new ideas and very patient while I took the reins and learned about our awesome Association as a whole. A big thank you to NDAB’s 2014 President, Ken Callahan for his passion, excitement and belief in me. On November 14 the NDAB Board of Directors and special guests gathered in Grand Forks to toast our successful past year and celebrate the future year ahead of us. 2014 NDAB President Ken Callahan was thanked for his past years’ service and pinned with NAHB’s Past State President pin. 2015 NDAB President LeRoy Kurtyka was sworn in and pinned with NAHB’s State President pin. Our Board of Directors is made up of volunteers and we fully recognize and appreciate their time and dedication. To our outgoing board members, a heartfelt thank you. Your leadership is helping to push forth NDAB and grow in our success. It has truly been a pleasure to work with you. Outgoing Board Members: Dickinson Area BA: Kyle Kuntz Forx Builders Assoc: Chip Shea HBA of Fargo-Moorhead: Jason Eid HBA of Fargo-Moorhead: Terry Lipp Minot Assoc. of Builders: Mitch Kraft Williston Area BA: Jeff Zarling

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Congratulations to our 2014 state award winners and nominees that were also announced at the annual banquet: Builders Engaging Associate Members (BEAM): Kochmann Brothers Homes Incorporated from the HBA of Fargo-Moorhead Associate of the Year: Robin Swanson with Superior Insurance Agency from the HBA of Fargo-Moorhead Builder of the Year: Carlita Dietz with Jay Dietz Construction, Inc. from the HBA of Fargo-Moorhead

I’m excited for NDAB and for the future we have with Kim Schneider and Heather Austin leading our team. We also have LeRoy Kurtyka, Arnold Karsky, Eric Brenden, Dan Lindquist and Eric Warren coming up the ranks. NDAB is lucky to have so many great leaders and is set up for the future! Again, thank you so much for a great year. It was my pleasure to serve as your President and I am looking forward to representing you as our BUILD-PAC Trustee next year. Take care and happy holidays!

What an exciting year it has been! As 2014 goes down in the record books we look forward to making new memories in 2015. Sponsorship opportunities will soon roll out, education opportunities will be offered, memberships will grow and in the end, new friendships will be made. Thank you all for making NDAB one of the best state-wide Associations in the Nation!

Ken

Kim Schneider

Take care,

Back your PAC … your PAC backs you! NDAB-PAC is the North Dakota Association of Builders’ Political Action Committee. It is a non-partisan political action committee that provides support for candidates who are friends of the building industry. Contact NDAB at (800) 326-4746, (701) 222-2401 or info@ndbuild.com to contribute or learn more! North Dakota Association of Builders 1720 Burnt Boat Drive, Suite 207, Bismarck, ND 58503-0801 701/222-2401 or 800/326-4746 www.ndbuild.com

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BMHBA Building Buzz

December 2014

Around the State Dot Frank, Executive Officer 701-222-2400

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Valley Home & Garden Show Feb. 27, 28 and March 1 at the Fargodome.

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The association was excited to host NAHB staff for a Waters of the US event. Owen McDonough and Courtney Briggs participated in the event and met with board members during their time in town. Vance Vetter of Vance Vetter Homes was named the 2014 Builder of the Year and Greg Zenker of Ferguson Enterprises was named 2014 Associate of the Year. Scott and Vicki Moran of Hallmark Homes were named the 2014 BEAM recipient. More than 60 members attended a Building Officials Roundtable to recap the 2014 construction season and prepare for changes in 2015. The association is hosting members to a Holiday Open House on Dec. 11. The event will make use of a new, hip venue and feature live music.

Dickinson Area Builders Assoc. Irene Schafer, Executive Officer 701-483-0044 dickinsonareabuilders.com

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Dickinson Area Builders held their second Safety Training session on November 4. They are looking ahead to the next one the first week in January. Plans are underway for our annual Christmas Party to be held at Lady J’s Club & Catering on Wednesday, December 10 at 5:30 p.m. Members need to make reservations early. Next GMM will be held at the Elks on January 14, 2015.

Bryce Johnson, Executive Vice President hbafm.com 701-232-5846

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The HBA sponsors and will assist with the Health, Tech & Trades Career Expo Dec. 4 at the Fargodome. This is an opportunity for area ninth graders to visit with industry representatives and experience interactive exhibits promoting careers that do not require a four-year degree. The HBA will host a booth where students can visit with members and use a saw to cut out Christmas trees. Education season continues with free safety training on fall protection and OSHA recordkeeping Dec. 2, a lunch session on upcoming water heater requirements Dec. 9, an OSHA 10-hour construction course Dec. 16-17, and a lunch session on Minnesota’s requirement for fire sprinklers in homes Dec. 18. HBA leaders are excited to welcome Kimberly Lacy of Curb Appeal: The Block as featured speaker for the Red River

www.ndbuild.com

Forx Builders Association Betty McDonald, Executive Officer 701-746-4536 forxbuilders.com

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Congratulations to our LeRoy Kurtyka who was installed as the 2015 NDAB President at the annual banquet held here in Grand Forks. The December Builders after Hours will be held December 10th and hosted by Keith’s Security World and the Membership Committee. We are partnering with the UND Environmental Training Institute to offer Lead EPA Renovator Refresher & Initial Courses. Certification is required every five years.

Minot Association of Builders Vicky Flagstad, Executive Officer 701-852-0496 minotab.com

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November Builders After Hours was hosted by Souris River Designs at their newly remodeled showroom. It was a great turnout and the winners of our fall membership drive were announced. We recruited 8 new members. MAB has scheduled a Member Appreciation Holiday Social for December 16th from 2:00 p.m. to 7:00 p.m. Stop by for the traditional holiday treats as well as adult beverages and appetizers. Booth sales for the 2015 Home & Garden Show are going well with approximately half of the spaces reserved as of midNovember. HAPPY HOLIDAYS from the Minot Association of Builders!

Williston Area Builders Association Beth Sundheim, Executive Officer 701-572-5744 willistonbuilders.com

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December 10th installation of Board of Directors. The sponsor of the event Williston Economic Development. Board members sworn in Bill Tracy and Chris Blackwell December 16th Board meeting

Thank you to the all of the NDAB 2014 Partners who help make our events possible. We truly appreciate your support!

Gold - Montana Dakota Utilities Co. Silver - Bismarck-Mandan HBA, Dawson Ins./State Auto Ins., HBA of Fargo-Moorhead, Miller Insulation Co., Inc., Northern Plumbing Supply Bronze - Bank of North Dakota, Bell State Bank & Trust, Forx Builders Assoc., Minot Assoc. of Builders, ND Guaranty & Title Co., ND Housing Finance Agency, ProBuild, RDO Equipment Co., Williston Area Builders Assoc, We also want to recognize our 2014 ND Professional Builders. Thank you for continuing to learn and seek out ways to stay current in your industry! We are looking forward to seeing this list grow in 2015 as NDAB continues to bring educational opportunities to our Members. Eric Berg, Fargo Charles Bon, Robinson Michael Bullinger, Fargo Don Dabbert, Fargo Jason Eid, Fargo Aaron Greterman, Fargo John Gunkelman, Fargo Todd Halle, Harwood John Hough, Moorhead Robert Kockmann, Fargo Greg Krueger, Fargo Tyrone Leslie, Fargo Dan Lindquist, Fargo David Nordstrom, Williston Gary Orth, Fargo Tom Spaeth, Fargo Mark Spriggs, Moorhead Mike Workman, Fargo Charles Zach, Wahpeton

Our 2015 Board of Directors! North Dakota Association of Builders

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December 2014

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