February 2019 Building Buzz

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Bismarck-Mandan Home Builders Association



February 2019







Building Buzz is a publication of the Bismarck-Mandan Home Builders Association 2600 Gateway Ave., Suite 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730

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Publisher/Editor: Dot Frank Layout Editor: Stephanie Drietz - Drietz Designs Contributor: Tracy DeForest

New Members & Anniversaries Time to Renew! Members with February Anniversaries. Renew by February 28, 2019. Cambria USA

Kupper Chevrolet

NextHome Legendary Properties

Kuntz & Sons Construction

ABC Boat Docks


Graybar Electric Company

Joe Vetter Construction

Bath Fitter

Interiors by France

Jerry's Vacuum Center

Huntington Homes

BNI Coal, Ltd

Heartland Pella Windows & Doors

Rusch Homes

Fred's Electric, Inc.

Property Resources Group

Ferguson Enterprises

Patriot Homes

Electric Systems, Inc.

U.S. Bank

Dakota Windows, Doors, & Siding

Tobias Marman Construction, LLC

Dakota Impressions Landscaping & Design, LLC

Starion Bank

CS Doors, Inc

Spiffy Biffs

Cottingham Insurance Agency, DDC Inc.

Spas, Etc.

Copper Ridge Design and Builders, Inc.

Skinner's Roll-Off Service, Inc.


Sheet Metal Specialties, Inc.

Carpet Garage

Ressler Siding & Window

Capital Electric Cooperative, Inc.

Red River Glazing, Inc.

Capital Credit Union

RDO Equipment

Brad Bonnet Contracting, Inc.

ProFoam Insulation

Ben's Electric

Pearson Home Builders, Inc.

Bauer Plumbing

Mertz Builders, Inc.

Anyleaks, Inc.

Magi-Touch Carpet One Floor & Home

American Insurance Center

Lillis Electric, Inc.

Acme Tools


Building Buzz | February 2019

Your membership is three-in-one: BMHBA, NDAB and NAHB

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

2019 Board of Directors PRESIDENT

Jeff Sattler Sattler Homes Phone: (701)255-7628 jeff@bismarckbuilder.com


Lynn Klein Gate City Bank Phone: (701) 355-7633 lynn.klein@gatecitybank.com




Susie Franklin Choice Financial Phone: (701) 751-7282

Rory Anderson Verity Homes of Bismarck Phone:(701) 354-2846 rory@verityhomes.com

Greg Meidinger Aspire Homes (701) 426-8583 greg@daretoaspirend.com Chad Moldenhauer K&L Homes Inc. Phone: (701) 258-4584 chad@k-lhomes.com Bill Schmid Townsquare Media Phone: (701) 250-6602


Brian Eiseman Stoneshire Builders Phone: (701) 471-6935 brian@stoneshirebuilders.com

Joe Hillerson Boulder Homes (701) 400-5554 boulderhomesnd@gmail.com


Marc Menge BNC National Bank Phone:(701) 250-3000 mmenge@bncbank.com

Jamie Schmidt Triton Homes Phone: (701) 223-3030 jamie.schmidt@investcore.com Greg Zenker Northern Plains Plumbing, Heating & Air Phone: (701) 222-2155 greg@northernplains.net

BIANCO REALTY SALES AWARDS Bianco Realty has announced their top 6 "REALTORS® OF THE MONTH" for January: Shirley Thomas, Amber Sandness, Darcy Fettig, Tori Mathern, Judy Maslowski and Char Huelsman. These six REALTORS® had the highest sales totals at Bianco Realty in January 2019.

Shirley Thomas

Amber Sandness

Darcy Fettig

Tori Mathern

Judy Maslowski

Char Huelsman

December 2018 Building Permits Data not collected for the ETA in 2015 and 2016.

SINGLE FAMILY BISMARCK PERMITS BISMARCK ETA MANDAN PERMITS LINCOLN PERMITS BURLEIGH/MORTON MONTH YEAR 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 JANUARY 0 9 1 0 0 0 1 0 0 2 0 2 0 0 0 2 0 1 FEBRUARY 3 4 5 2 0 0 1 2 6 5 0 0 0 3 1 1 0 0 MARCH 21 22 14 2 2 2 11 6 4 8 0 3 0 0 9 9 4 2 APRIL 52 29 40 27 4 3 14 12 8 16 18 2 4 0 14 5 11 11 MAY 31 46 29 16 5 6 26 13 11 15 17 2 5 5 14 16 7 20 JUNE 31 43 48 24 10 2 21 20 13 13 1 6 3 1 8 11 4 4 JULY 40 16 60 22 3 3 9 13 6 11 0 5 1 5 13 9 4 3 AUGUST 20 48 16 27 6 1 17 7 13 20 8 2 9 4 8 9 6 8 SEPTEMBER 28 44 26 22 8 3 16 14 26 11 3 3 4 5 9 9 9 6 OCTOBER 54 14 22 15 4 7 9 29 20 9 17 10 7 5 4 7 3 7 NOVEMBER 16 11 9 11 3 0 7 7 7 6 2 5 0 0 3 4 1 0 DECEMBER 1 0 0 1 0 0 0 0 0 0 1 0 4 0 0 0 2 0 TOTAL 297 286 270 169 0 0 45 27 132 123 114 116 67 40 37 28 83 82 51 62


MERTZ BUILDERS....................................................534 E LASALLE DR

BIANCO REALTY ANNUAL AWARDS 2018 Here are some of the awards presented at Bianco Realty’s Annual Awards Breakfast: Rookie of the Year: JUSTIN MUNDAHL Top Producer: SHIRLEY THOMAS

Shirley Thomas

Amber Sandness

Darcy Fettig

Judy Maslowski

Amy Asche

James Jeromcheck

Jim Jeromcheck

Phyllis Rittenbach

Brenda Foster

Greg Gerhart

Tyler Hofland

Kathy Feist



Tori Mathern


CENTURY 21 Morrison Realty Call us today at 701.223.6654

Our expert REALTORS® take pride with every real estate transaction. Their passion for real estate is inspiring. They make the home buying and selling process easier and are ready to make your real estate dreams come true!

February 2019 | Building Buzz


President’s Letter


t was great to see everybody at the Annual Banquet! Our events committee did a great job hosting all of us at the Harvest Event Center.

February is here and off to a cold start, hopefully everyone can stay warm over the month as our long-term forecast looks to hold a below average forecast. We have a fun event coming up that will help warm you up - Builders, Beans & Beer on Feb. 18. Come out and vote for the best chili and enjoy socializing with colleagues.

The Home Show is fast approaching, and spaces are filling fast. Contact the office or visit www.BisManHomeShow.com to register your booth in the upcoming Home Show. The Home Show is a great way to get in front of many potential home buyers and start selling new builds for the spring.

We had the chance to visit with our legislators at the Chili & Oyster feed hosted in conjunction with the Realtors on Feb. 5. This is an important event because elected officials like to hear directly from constituents in the field. It is always nice to meet and greet the people we ask to help us with issues during the current legislative session.

Jeff Sattler

BUILD-PAC is our voice throughout the entire association and the best way to help Board President influence change whether it be local, state or federal. I sent in my annual donation and would love to see an increased participation from our association. Without PAC we lose our voice in politics. Rory Anderson of Verity Homes and I are your NDAB-PAC Trustees; feel free to ask any questions about PAC. NDAB-PAC helps elect pro-housing candidates in the State as well as raising funds for our local races. BUILD-PAC is the political arm of NAHB; it helps elect pro-housing and pro-business candidates to federal office. The International Builders show also is this month in Las Vegas from Feb. 19-21. There are quite a few members from the BMHBA attending this year and I look forward to bumping into you at the event. Make sure to sign up for these upcoming events:

1. Builders, Beer & Beans on Feb. 19 at the Burleigh County 4H Building.

- Friendly competition between board members for the best chili.

- Discount for 1st time exhibitors

2. Home Show, March 15 at the Bismarck Event Center

- Opportunity to start 2019 construction season off strong - Get you booth by visiting www.BisManHomeShow.com


Jeff Sattler, President


Building Buzz | February 2019

Green Building Becoming the Standard for New Homes Homes are increasingly being designed, constructed and operated toward the greener end of the construction continuum. And many of the design features associated with green building carry direct consumer benefits, such as greater comfort, lower utility bills, reduced maintenance and increased value.

New research only continues to reinforce the benefits of green building. For example:

By Michelle Dusseau Diller, P.E.

NAHB’s report, Housing Preferences of the Boomer Generation: How They Compare to Other Home Buyers, asked home buyers across four generations — millennials, Gen Xers, baby boomers, and seniors — what features they consider essential/desirable in a new home. Energyefficient strategies, including ENERGY STAR appliances and windows and above-code insulation, made the mostwanted list and would positively influence the purchase decision of 80% or more of all home buyers.

• A recent study by the American Council for an Energy Efficient Economy found that every dollar invested in The 2017 Green Practices Survey was conducted to gather information on sustainable and high-performance building energy efficiency yields $1.24 to $4 in benefits. practices being used in single-family home building in • An EPA analysis of upgrading homes to ENERGY 2016. Responses were aligned with practices found in the STAR insulation and air sealing requirements showed National Green Building Standard (NGBS) to determine that owners saved an average of 11% on annual how green the typical single-family home is regardless of utility bills. whether they obtain certification under the standard. • A sales price analysis in the latest North Carolina The survey results showed that resource efficiency, site Building Performance Association study showed that and lot design currently are the most challenging aspects high-performance homes, on average, have a 9.5% of residential green building. On average, typical homes did higher sale price. not meet the thresholds for “bronze” in these categories. Is green here to stay? All indications are yes.

Single-family green residential construction market share has continued to grow, rising from 2% in 2005 to 33% in 2017. Approximately one-third of the builders surveyed in the 2017 SmartMarket Brief: Green Multifamily and Single-Family Homes said that green building is a significant portion of their overall activity (more than 60% of their portfolio). And 88% of builders reported they are incorporating features to make their homes greener than they did two years ago. Ongoing research by NAHB and its partners also shows that many home buyers are interested in green.

As homes must meet the minimum requirements across all sections of the NGBS for certification, these gaps prevented more homes in the survey from being eligible for certification. The NAHB National Green Building Program was unveiled in February 2008; the subsequent National Green Building Standard (NGBS) is now in its third iteration, with another update anticipated in early 2020. This post was adapted from an article in the Fall 2018 issue of Best in American Living. Michelle Dusseau Diller, P.E., is Program Manager for Sustainability and Green Building at the National Association of Home Builders. February 2019 | Building Buzz


CITY & COUNTY OLD ACKNOWLEDGED, NEW APPOINTED AT ANNUAL DINNER Close to 100 members made their way to Mandan last month for the association’s Annual Dinner. The event, which was hosted at the Harvest Event Center, paid tribute to the past year’s events and award winners, thanked outgoing President Lynn Klein and Past President Shannon Reichenberg, welcomed new board member Jamie Schmidt and appointed Jeff Sattler as the 2019 president.

PAC TRUSTEES GATHER The North Dakota Association of Builders PAC trustees met to talk about the 2018 election cycle and pending legislative session. The group heard from Secretary of State Al Jaeger prior to the Chili & Oyster Feed for legislators. BMHBA PAC Trustees include Jeff Sattler and Rory Anderson. Past President Vance Vetter serves as the NDAB-PAC alternate trustee and led the meeting.

Trustees tout the value of our advocacy efforts at a local, state and national level. Your voice and financial support do make a difference. Learn about how you can ensure the future of homebuilding and homeownership remain within reach by contacting Jeff or Rory.


The City of Bismarck has implemented changes to utility fees after a study of the rates.

Builders should pay particular attention to 3/4 meters as the new standard. Water meters that exceed that size will result in a fee to the builder. Information about the rates is available online at https://bit.ly/2E66V61 and fees at https://bit.ly/2X057mo.


Building Buzz | February 2019

The event was reformatted to provide adequate time for socializing, limited programming and a VIP lounge. Members who contributed $500 or more in sponsorships in 2018 were hosted with an open bar and appetizers in an exclusive area.

If you enjoyed the event, please let our Events Committee members and sponsors know. Thank you Dinner Sponsor: Plains Commerce Bank; Platinum Sponsors: Front Street Millwork & Lumber, Gate City Bank, Starion Bank; Gold Sponsors: BNC Bank, Townsquare Media; Silver Sponsors: D&M Industries, Kirkwood Bank & Trust; and Bronze Sponsors: Cullen Insulation and Elks Lodge.

CITY & COUNTY BISMARCK FLOOD MITIGATION REPORT As a participating community in FEMA’s Community Rating System (CRS) program, the City is required to develop and post a progress report relating to the flood mitigation action items as identified in the 2015 Bismarck Multi-Hazard Mitigation Plan. The progress report must be distributed to the City Commission and also be available to the public. A copy of this report entitled “Flood Mitigation Annual Progress Report” can be viewed or downloaded from the City website www.bismarcknd.gov/floodresources.

The Flood Mitigation Annual Progress Report constitutes the review of the plan by the Flood Hazard Mitigation Plan Committee since its adoption. The information in the progress report presents the progress made to date on specific mitigation actions in the Flood Hazard Mitigation Plan. The CRS program is a voluntary incentive program that recognizes and encourages a comprehensive approach to floodplain management and rewards communities that exceed minimum floodplain management requirements. The CRS program provides benefit to Bismarck by conducting activities to better manage risk in categories such as public information, mapping and regulations, flood damage reduction, warning and response, stormwater and drainage system maintenance. Residents and business owners in the City of Bismarck and Extraterritorial Zone (ETA) may take advantage of a reduction in flood insurance premiums because of the City’s active participation in the National Flood Insurance Program's (NFIP) Community Rating System. In addition to lower premiums, the CRS program helps to reduce the threat of damage due to flooding. As a result, flood insurance premium rates are discounted to reflect the reduced flood risk resulting from the community actions that meet the goals of the CRS program. Property owners who hold flood insurance policies are encouraged to review the policy with their insurance agent to take advantage of any qualifying discounts.


Join Job Service North Dakota and the Bismarck Mandan Chamber EDC for the annual MultiIndustry Job Fair on Thursday, March 21 from 3:30-6 p.m. at the Ramkota Hotel. The cost for one 8-foot table with a tablecloth and 2 chairs is $150. A maximum of 60 tables will be available. Last year’s job fair attracted more than 450 job seekers. To reserve your spot, register at business.bismarckmandan.com/events/details/job-servicemulti-industry-job-fair-2019-4439. There are a couple screens to enter information on so be sure to select Next or Checkout as you navigate through the registration. Online payment is preferred.

After you register, Job Service will email you more information and ask about the types of positions your company will potentially have available. Advanced advertising could result in increased applications prior to the job fair, as well as better attendance at the job fair. If you have questions about the job fair, contact Carol Yantzer at 328-5037 or cyantzer@nd.gov.


The City of Mandan issues bulk email updates to anyone who subscribes through its website.

These include notices of various meetings, news releases, announcements and alerts. Because of a recent website refresh, the list must be reset.

Existing subscribers are asked to complete the form by visiting bit.ly/2Gj4cIZ to continue receiving e-mail notifications from the City of Mandan. The emails will be from info@mandan.govoffice.com.

New and returning users can select from a list of different categories to receive updates. A few new categories are now available, including the option to receive legal notices. Subscribers may opt out at any time with an “unsubscribe” option.


From more restaurants to leveraging of private sector property investments and new small businesses, development and communications activities in Mandan are helping to improve the community.

The City of Mandan has issued a Business Development Community Report for 2018 to highlight projects completed and approved in the past year. The report shares stories about West Main redevelopment, renovation of the former junior high school for affordable housing, plus updates on Restaurant Rewards, Renaissance Zone and Storefront Improvement programs as well as Growth Fund loans and investments. Find the report at CityofMandan.com.

February 2019 | Building Buzz




The 42nd Annual BMHBA Home Show is March 15-16. Exhibit space availability is open for viewing and reserving under the “Exhibitors” tab at www.BisManHomeShow.com.

Get a head start on your marketing and outreach efforts by shaking the hands of hundreds of people during this two-day event. Member booths start at just $500 and with attendance over 5,000 that comes to just 10-cents per contact.


The HBA is excited to partner with American Bank Center to host Free Friday and the VIP Lounge. We’re also proud of the partnership with Tote Sponsor First International Bank; Select Dealer Sponsor Eide Chrysler Dodge Jeep; Scavenger Hunt Sponsors Northland Insurance Agency, Inc., Century 21 Morrison Realty, Advanced Mechanical, Coldspring, Starion Bank, Northland Concrete & Excavation, Rivers Edge Plumbing and Heating, Inc., Bismarck Heating & Air Conditioning Inc., BEK Communications, The Door Guys LLC, Proximal50 Life Center, Backyard Escapes by Kerner Pools & Spas, Bobcat of Mandan, Bisman Remodel Pros, LLC and Toddler Town Sponsors Bismarck Heating & Air. Visit www.BisManHomeShow to reserve your space now, email tracy@bmhba.com or call 222-2400.

Start stretching your stomach now to accommodate the bowls full of chili you can consume at the HBA’s Annual Builders, Beans & Beer event.

Board members will square off on Feb. 21 in the anticipated chili cookoff. Only one member can be named Chili Champ and we need your help is determining who that is. Last year’s title went to Marc Menge but we’ve got a new board member entering the contest…Jamie Schmidt from Triton Homes.

Save the date and register to attend now. Registration is open online at www.bmhba. com/events. Admission is free for one person from each member business and additional attendees are just $15 each. Admission includes chili and free beer.

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


Building Buzz | February 2019


NEXT GENERATION OF BUILDERS The association’s three scholarship recipients attended the Annual Dinner and accepted a check for $3000 in funds for their education in the home building industry. The 2018 recipients included:

• Jared Gefre, Carpentry • William Kleppe, HVAC

• Brady Tougas, Carpentry

Contributions to the BMHBA scholarship are accepted throughout the year. Contact the office at 222-2400 about ways to give.

2019 Calendar of Events February 21

Builders, Beans & Beer Chili Cookoff 5:00 - 7:00 P.M. Burleigh Co. 4H Building, Bismarck, ND

Winter blues got you down? Then it's time for some fun! Join us for a new twist on an old favorite. Fun Night is now Builders, Beans and Beer. Enjoy house chili and serve as judges for the board cookoff on Thursday, Feb. 21. You must be 21 to attend.

March 15-16

BMHBA Home Show

We're excited to present the 2019 Home Show at the Bismarck Event Center. The HBA is pulling out all stops to ensure a successful event for exhibitors. Visit BisManHomeShow.com.

April 25-28

Spring Parade of Homes

Save the date so you remember to get your home(s) ready for the Spring Parade. Details at BisManParade.com.

May 16

Spring Awards Mixer & GMM 5:00 - 8:00 P.M. Baymont Inn, Mandan

• Presentation of the Spring Parade of Homes Awards • Remarks from BMHBA President & Executive Officer • Hot Appetizers and Open Bar

July 11

PAC Fundraiser Golf Tournament Prairie West Golf Club

August 1

Sporting Clay Shoot 4:00 - 7:00 P.M. Capital City Sporting Clays

February 2019 | Building Buzz



AVOIDING POORPERFORMING HOMES AND PROFIT-KILLING CALL BACKS The success of a builder is not simply determined by how many homes are built or even how much money is initially made: It’s the amount of profit that the builder retains over the long term. Building expenses don’t always finish accruing once you turn over the keys to the buyer. The secret to maximizing your bottom line depends on how well you control your callback costs.

The NAHB International Builders’ Show® (IBS) Master Session “Avoiding Poor Performing Homes & Profit-Killing Call-Backs” will explore the biggest mistakes that designers, builders and the trades make that often lead to costly and time-consuming follow-up work. Read more about this session and keep upto-date on IBS programming and special events on the IBS blog http://blog.buildersshow.com.

DISCOVER HOW TO BUILD AN EFFECTIVE BRAND Creating a relevant brand in today’s socially connected, on-demand business environment is far more complex than ever before. Reputation, trust and the consumer experience have become as equally important as what you build, and all must be considered and carefully aligned.

The NAHB International Builders’ Show® (IBS) Game Changers session “Renovating Your Brand Strategy” will explore how you can effectively build a powerful brand. Start-up veterans Koda Wang, former COO at Huffington Post and CCO at Rent the Runway, and Luke Sherwin, co-founder of the online mattress company Casper, will share their insights into establishing and managing long-lasting brands. Read more about this session and keep upto-date on IBS programming and special events on the IBS blog at https://bit.ly/2WkTOFj.


The annual Consumer Electronics Show (CES) is considered one of the world’s biggest showcases of innovative technology. Each year brings a new batch of breakthroughs into the limelight, and 2019 show was no exception.

The CEDIA Technology Council is group of volunteers who stay abreast of tech trends to help those who are responsible for integrating that technology into the home know what’s on the horizon. Here are some of the latest trends and inventive solutions the council noticed at CES earlier this month that could soon have an impact on the construction trades.

Make room for even bigger TVs. You’ve heard of 4K. Get ready for 8K. This higherresolution format is coming, according to Gordon van Zuiden owner of integration firm cyberManor in Los Gatos, Calif. “The logic behind it is that the average size of televisions sold in the U.S. this year is around 47, 48 inches,” van Zuiden said. “That’s compared to about eight years ago when it was 36 inches, and very soon we expect the average size will be between 50 to 55 inches. When TVs get to be that size, 8K makes a lot of sense.” Homes will have a greater number and variety of sensors. More devices continue to be introduced into the home to monitor everything – not only what we say, but also our daily routines, body gestures and health. Peter Aylett of Archimedia in Dubai noted that one of the firms on the show floor, Korea’s UMAIN, was demonstrating sensors that utilized – of all things – radar: “If you’re within about two meters, a radar can detect your heart rate and your respiration rate,” Aylett said. “So in terms of monitoring kids in nurseries, monitoring the elderly, the vulnerable, the sick – this is a fantastic, non-invasive method. There are no cameras, no microphones – you can hold a conversation and this thing isn’t picking it up. It’s picking up respiration, heartbeats, physical activity, security monitoring – all through radar.” Tools are getting a lot smarter. From motion-based measuring tools, to drills that let you know what distance into material the bit has traveled (and the precise angle of the drill bit, too), clever construction tools were on full display at CES.

Rich Green, a Palo Alto integrator who owns Rich Green Designs, was impressed by a measurement product from a company called Moasure. “If you wanted to measure the total fabric requirements for an acoustical space,” Green said, “you can take this little puck, move it around the room, and it’ll tell you with incredible accuracy precisely how much fabric you need.”

This guest post is from Ed Wenck, content director for CEDIA, the industry association representing those professionals who manufacture, design and integrate goods and services for the connected home.


Buoyed by falling mortgage rates, builder confidence in the market for newly-built single-family homes rose two points to 58 in January on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

“The gradual decline in mortgage rates in recent weeks helped to sustain builder sentiment,” said NAHB Chairman Randy Noel. “Low unemployment, solid job growth and favorable demographics should support housing demand in the coming months.”

“Builders need to continue to manage rising construction costs to keep home prices affordable, particularly for young buyers at the entry-level of the market,” said NAHB Chief Economist Robert Dietz. “Lower interest rates that peaked around 5% in midNovember and have since fallen to just below 4.5% will help the housing market continue to grow at a modest clip as we enter the new year.” Due to the partial government shutdown, there will be no new Census/HUD figures released on housing starts and permits. NAHB estimates that the December government data would show that single-family starts ended the year totaling 876,000 units, which would mark a 3% gain over the 2017 total of 848,900. However, the slowdown in sales during the fourth quarter of 2018 has left new home inventories elevated in some markets.


Building Buzz | February 2019

NAHB’s International Builders’ Show (IBS) is the premier event for those in the residential construction business — especially for the thousands of young building professionals who are the future of the industry.

If you’re a young building professional, there is no better place to be than this year’s builders’ show. The NAHB Young Professionals Committee has packed the IBS schedule with programming specifically tailored to the under-45 crowd.

The YP Committee will hold its official meeting on Monday, Feb. 18 at 4:30 p.m., followed immediately by the 2018 NAHB Young Professionals Award Reception. These events are a great opportunity to meet and greet all YP Committee members and get ready for the show to open. When IBS formally kicks off on Tuesday, come by the NAHBNext Lounge at the NAHB HQ booth (N1739) for Social Recharging Hour every day at 1:30 p.m. Recharge your mind, body and phone with other young builders. NAHB HQ also will host a number of educational sessions on topics ranging from the value of NAHB membership to using social media to advance your business and career.


Dell - Up to 30% off on all Dell computers. Call 800-757-8442 and mention NAHB or visit dell.com/nahb.

GEICO - Exclusive NAHB discounts for members on auto insurance. Visit geico.com/ disc/nahb or call 800-368-2734. Mention NAHB for auto, homeowners, and commercial auto quotes. Ticket Monster – NEW! MemberDeals is pleased to offer entertainment and travel discounts for both regional and nationwide attractions, as well as events, to all NAHB members. Access exclusive savings on movie tickets, theme parks, hotels, tours, Broadway and Vegas shows & more. Visit memberdeals.com/nahb to learn more!

Lowe's - Visit LowesForPros.com/NAHB or call 877-435-2440 and register to save 2% on your Lowe's Accounts Receivable (LAR) or Lowe's Business Accounts (LBA) purchases and free delivery on purchases over $500. Save an additional 5% every day at the store when you mention NAHB at time of purchase and when using your LAR or LBA.

Total existing home sales fell 6.4% to a seasonally adjusted rate of 4.99 million in December, according to the latest figures by the National Association of Realtors. Sales are at their lowest level since November 2015 and down 10.3% from a year ago (5.56 million in December 2017). Total existing home sales include singlefamily homes, townhomes, condominiums and co-ops.

Existing home sales remained sluggish in 2018 due to rising mortgage rates, growing home prices and tight inventory.

Meanwhile, the new home sales report for December scheduled to be released on Jan. 25 will likely be postponed due to the government shutdown.

The first-time buyer share of existing home sales slightly declined to 32% in December from 33% the previous month. The December inventory decreased to 1.55 million units from 1.74 million units in November. At the current sales rate, the December unsold inventory represents a 3.7-month supply, down from a 3.9-month supply last month. Homes stayed on the market for 46 days in December, up from 42 days in November and 40 days a year ago. In December, 39% of existing homes sold were on the market for less than a month.

The December median sales price for existing homes was $253,600, up 2.9% from a year ago. This marks the 82nd consecutive month of year-over-year increases. The December median condominium/co-op price of $240,600 was up 2.3% from a year ago.

General Motors – General Motors is proud to offer NAHB Members a Private Offer of up to $1,000 on your next Chevrolet, Buick and GMC vehicle. Visit nahb.org/gm to learn more.

Nissan/Infiniti Commercial Vehicles – NEW! Nissan North America presents NAHB Members, their employees and HBA staff with a program allowing exclusive incentives off various Nissan and Infiniti vehicles. You can save thousands! Learn more at nahb.org/Nissan

For the Best Prices on a Complete Insulation Package or Material, Contact …

CULLEN INSULATION “Commitment to Excellence”


2325 Skylark Ave • Bismarck, ND 58503 701-751-7066 THE PINK PANTHER™ & © 1964–2017 MGM.

February 2019 | Building Buzz



Office Depot - Office Depot – Save up to 80% in-store or online. Free shipping on orders of $50 or more. Visit www.officediscounts.org/NAHB or call Jeremy Kirkland for assistance with your business account; 855-337-6811 Ext. 2897


And of course, there is the Young Pro Party, the featured after-hours event at IBS. This year, the party will be held at Hyde Nightclub in the Bellagio, one of the top clubs in America. It kicks off at 8:30 p.m. on Wednesday, Feb. 20. This is a premium, ticketed event. But the $40 ticket price includes an open bar.





The Internal Revenue Service (IRS) has announced that it is waiving the tax penalty for many home builders and other small businesses that pay estimated quarterly taxes but whose 2018 federal income tax withholding and/or estimated tax payments fell short of their total tax liability for the year. In a letter sent June 7 to Treasury Secretary Steve Mnuchin, NAHB called on the IRS to take this action because of confusion over how the landmark Tax Cuts and Jobs Act tax reform law enacted in December 2017 would be implemented. “Issuing guidance now for a safe harbor on underpayment for the millions of taxpayers who are required to submit estimated quarterly tax payments, particularly in light of the complexities of the Section 199A pass-through deduction, would be a welcome relief to small businesses,” the letter said. The IRS said in a press statement that it is “generally waiving the penalty for any taxpayer who paid at least 85% of their total tax liability during the year through federal income withholding, quarterly estimated tax payments or a combination of the two. The usual percentage threshold is 90% to avoid a penalty.” This means that a taxpayer will not owe a penalty if they paid at least 85% of their total 2018 tax liability. If the taxpayer paid less than 85%, then they are not eligible for the waiver and the penalty will be calculated as it normally would be.





@ t r a c y - 2 4 0 0 g s p o t. t c a C o n t o r 2 2 2 ve r t i s i n ad this m i a l to c


Have you ever wondered if the impact fees your company is paying to various jurisdictions are going toward their intended purpose? Interestingly, they often are not.

Over the last 30 years, the Development Planning & Financing Group Inc. (DPFG) has been working with NAHB, HBAs and various home building companies in reviewing, critiquing, and determining the overall fairness and equity of the impact fees proposed by associated jurisdictions. Over the last seven years, DPFG has conducted a number of in-depth audits of municipalities’ fee programs and we can now conclude greater transparency and oversight are needed related to the expenditure of fees.

Common misuses of fees

Most jurisdictions attempt to utilize fees for the intended purposes. There does, however, appear to be an almost uniform disconnect between the departments that prepare the fee study (e.g., manager, public works and finance departments) and the departments and/or personnel that collect and expend impact fees (accounting and public works departments).

In states with no fee audit requirement, DPFG’s audit findings have found the misuse of impact fees in four general areas:

Using fees to correct existing deficiencies. While reviewing a fee study, it was noted that federal and state authorities had cited a jurisdiction for not having sufficient fire stations. The jurisdiction was required by the authorities to use its own non-impact fee funds to construct a second fire station to adequately serve its existing population. During the peer review of the impact fee accounts, we discovered that the jurisdiction expended approximately $935,000 of impact fees it was collecting for fire stations 3, 4, and 5 for the construction of the second fire station. Using specific impact fees to fund non-authorized capital facilities. During a review of a jurisdiction’s water impact fee accounts, for which separate impact fees were being collected for water capacity and water distribution, DPFG uncovered that the jurisdiction had utilized $4.1 million collected for water distribution to finance water capacity projects. The same jurisdiction also expended approximately $2.2 million in impact fees specifically for sewage collection facilities to fund the wastewater treatment plant, for which it was collecting a separate fee. Using fees for the payment of non-capital assets. A jurisdiction funded more than $2.1 million in public works and park department salaries, payroll taxes, health insurance, vacation pay, overtime pay, and even retirement benefits. Fees were used to fund departmental office supplies, cellular service, travel, and meals.

Using fees for the repair and maintenance of existing facilities. In another jurisdiction, approximately $218,000 in funds were used to repair and replace existing park facilities rather than to construct new park facilities. The city has agreed to replenish the funds taken from the fee accounts through their general fund.

Ensuring proper expenditure of fees

Most state impact fee statutes are vague and open to interpretation, which often leads to misuse.

A possible solution is enacting impact-fee enabling legislation that outlines specific rules and guidelines for the estimation, collection, and expenditure of impact fees. This legislation should also provide a means for independent third parties knowledgeable in impact fees, public infrastructure, accounting and finance to audit the jurisdiction’s expenditure of impact fees. As a starting point, industry associations may want to consider a broader effort to implement more specific legislation related to the estimation, collection, and expenditure of impact fees. By providing more detailed guidelines and implementing regular peer reviews of fee accounts, both the public and private sectors can feel more confident that jurisdictions are utilizing impact fees for their intended purpose, which is to provide necessary infrastructure for new growth. Carter T. Froelich, CPA, is managing principal of the Southwest and Mountain Regions of Development Planning & Financing Group Inc. This post was adapted from an article in the Fall 2018 issue of Best in American Living. Read the full article online at https://bit. ly/2RQDEVv.


Building Buzz | February 2019

As the housing industry continues to deal with an affordability crisis, a new report shows that nearly one-third of households age 65 or older – 9.7 million – pay at least 30% of their income for housing, and more than half of these pay over 50%.

The report, Housing America’s Older Adults 2018, released recently by the Harvard Joint Center for Housing Studies, found that more than half of U.S. households are now headed by someone age 50 or older. It cautions that older generations will increasingly need more accessible and supportive housing than is currently available.

This is consistent with NAHB analysis of data from the Census Bureau’s 2017 American Community Survey that found nearly one-third of America’s 119 million households are cost burdened and pay more than 30% of their incomes for housing. That number includes almost half of the nation’s renter households and a quarter of the owner households.

As NAHBNow previously reported, addressing housing affordability concerns will be a top issue for NAHB in 2019, and we will be working with Congress and the administration to achieve this goal.

Federal policymakers can address affordability concerns by taking appropriate steps to ease needless regulatory burdens.

The Treasury Department released final regulations for the 20% pass through entity deduction under the Tax Cuts and Jobs Act of 2017.

The final regulations concern the deduction for qualified business income under Section 199A of the Internal Revenue Code. The regulations will affect individuals, partnerships, S corporations, trusts, and estates engaged in domestic trades or businesses.

The Treasury Department estimates that up to 40 million American business owners will be able to take advantage of this deduction.

The deduction is generally available with few limitations to small business owners with income below $315,000 for married couples filing jointly and $157,500 for single filers without limitations. Additional rules and limitations apply to higher-income earners. NAHB is in the process of reviewing the rules to determine how they will affect our members.

Meanwhile, members who have queries regarding the proposed regulations are encouraged to submit questions to their tax professionals.


This meeting gives NAHB members an insider’s view of our advocacy priorities. Attendees also learn about NAHB’s many membership benefits and have the opportunity to network with other professionals. Chief Economist Robert Dietz will update members on the outlook for the industry. Randi Zuckerberg, founder and CEO of Zuckerberg Media, will be the keynote sp

February 2019 | Building Buzz



Make plans to attend NAHB’s annual Meeting of the Members during the 2019 International Builders’ Show. The free event is open to NAHB members only and will take place on Wednesday, Feb. 20 from 8-9:30 a.m. at the Westgate Resort, Paradise Event Center, in Las Vegas.


Federal policymakers can address affordability concerns by taking appropriate steps to ease needless regulatory burdens that will help stabilize residential market conditions. Lawmakers also can enact policies to encourage the production of muchneeded affordable housing units.




NDAB NEWS Monthly News from the North Dakota Association of Builders

Bob Horab,

Kim Schneider,

Greetings all,

Ringing in the New Year!

I would first like to thank those who attended the Annual Meeting and Awards Banquet in Williston on November 29th. It’s always a welcome opportunity when we can host state-wide members along with local association members.

Happy New Year and welcome 2019! All of us at North Dakota Association of Builders are excited to welcome a new year, new possibilities, new journeys, new challenges and new friends. A new year is the first day to 365 days of unwritten pages to make of them what you want! We wish you all the best with your health, with your families and with your businesses.

NDAB President

Bob Horab President

January 2019

Congratulations to all the award winners of their achievements this past year. Members who stand out and are revered by their peers, motivate us to all do what we can to support our industry and the state association. That same night, the 2019 North Dakota Association of Builders Board of Directors were installed along with myself in the role of President of which I am truly humbled. I want to thank Dan Lindquist for his support and know I have big shoes to fill following his presidency.

We are heading into a legislative year and one of the benefits as a member you can rely on is legislative advocacy representing the association during session. By staying on top of the activity of bills that affect the building industry, we have an advantage of having someone there to promote and protect us while we’re at work. With that said, if any members hear of information that could lead to a potential change in business practices, laws etc., please reach to Kim Schneider, CEO at the state office and/or myself. An additional contact is Jason Eid, Government Affairs Chair who is also available to assist with any upcoming issues as session convenes January 3. I’ll make a quick mention of the International Builders Show in Las Vegas which is February 18 – 21. We will again co-host the State Reception with other Area 10 state associations on Tuesday, February 19 at the Westgate. I urge all of you attending to stop in and say hello. This is a great way to build relationships with those in our area caucus. Again, I want to thank the outgoing 2018 Board of Directors for their dedication and work on behalf of builders and the interests of the industry, and I look forward to the upcoming year.

NDAB Chief Executive Officer

Kim Schneider CEO

If you were able to join us for our banquet, we hope you had as much fun as we did. Celebrating our award winners, recognizing all our members and volunteers, and reflecting on a very busy, yet successful 2018! We truly value all our Board Members and the time and dedication they put into serving on the board. We also send our heartfelt thank you to the board members families for the time away. Thank You! It’s my honor to get to introduce you to our newest board members that join in representing your best interest at the NDAB Board of Directors meetings: Incoming Board Members: § HBA of Fargo-Moorhead: Kim Hochhalter § Minot Assoc. of Builders: Kasper Ziegler § Western Area BA: Terry Olin January is also the month to renew your sponsorships or sign up for one! Your company can be an annual sponsor or maybe you are interested in just one of our statewide events. We have many great options and opportunities to display your logo be provided recognition. If interested in learning more, please contact our office at 701-222-2401 or visit our website for details. January 3rd is the first official day of the 66th Legislative Assembly. The ND Legislature is made up of two chambers. Two representatives and one senator are elected from each district. The House of Representatives has 94 members and the Senate has a total of 47. North Dakota is unique in that the legislature meets bi-annually in odd numbered years and are restricted to being able to meet a total of 80 days once gaveled in which means this session will end by April 26, 2019. Please be watching your emails for Call to Action requests where you will be asked to reach out to your local representatives and senators regarding bills that impact our industry. Your voice is important to the legislators and make a big impact to their final vote. We will also be hosting various events and invite you to join us. If you plan to make a special trip to the ND Capitol, please let our office know. We always welcome guests and enjoy having the opportunity to show you around the capitol building, introduce you to the legislators and share with you the various committee hearings that might interest you to sit in on. In ND, we are very fortunate to have great accessibility to our Legislators and be active in the legislative process. Cheers to a New Year, I look forward to an exciting year ahead! Make this year a year of finding, of fulfillment, of joy, peace and purpose!

Wishing everyone a safe and blessed holiday season.

Take care,


Kim Schneider

Back your PAC … your PAC backs you! NDAB-PAC is the North Dakota Association of Builders’ Political Action Committee. It is a non -partisan political action committee that provides support for candidates who are friends of the building industry. Contact NDAB at (800) 326-4746, (701) 222-2401 or info@ndbuild.com to contribute or learn more! North Dakota Association of Builders ❖


Building Buzz | February 2019

1701 Burnt Boat Drive, Suite 201, Bismarck, ND 58503-0801 ❖

701/222-2401 or 800/326-4746 ❖


AROUND THE STATE Western Area Builders Association Around the State Amber Elizondo, Executive Officer

Minot Association of Builders Elysha Head, Executive Officer 701-852-0496 | minotab.com

| willistonbuilders.com Bismarck/Mandan HBA for donating a Decorating Services, 701-572-5744 Top Recruiter; Ken for our new Krajsa, Bell State Bank & Trust, Top Dot Frank,has Executive • Work begun Officer on the 2019 Home and Garden Show! Next • 2019 Home and Gardencomputer Show planning is inExecutive! full swing. We are Spike; George Fraza, Blue Cross Blue  Home show booths are being now!the 701-222-2400 bmhba.com year's show will take place on March 1st and 2nd.Shield Stay tuned looking add more “Kids” items at the event. Kids sold will get of ND, Top New Spike; Ken to Krajsa for more details! parents$12,500 in the door! January 8th is the deadline for our Cornerstone Award. HBC granted preferred vendors. Home show is April 15  The BMHBA has been busy following in scholarships to local high school – 17, 2016 ordinance updates in Bismarck and students and college students in or Dickinson Area Builders Assoc contact Thank you to our NDAB 2018 Jackie@willistonbuilders.com Professional Builders for Mandan, Burleigh and Morton Counties. planning on enrolling in the construction questions. All Lange, are reviewing and updating Lindsay Executive Officerdated programs. Don Dabbert Jr.-Dabbert Custom Homes codes. Eyes are currently on permit cost  Our December General Membership 701-483-0044 | dickinsonareabuilders.com  The HBA of F-M heldTodd a PAC Social with changes and development standards. meeting will be held on the 17th Williams-Todd Williams special guest Jerry Howard to talk about 2019 Home Show is less than 6 months away. We are • The A housing analysis conducted by Bismarck issues NAHB is working on in D.C. and Construction, LLC gearing up foroutlines anothera great turnout at the and Mandan need for an April 6th & 7th how they tie in locally. The event was a Thank so much to our Annual West River 7,786 Ice Center. additional owner-occupied homes MikeinWorkman-Jordahl Customyou Homes success with 75 members attendance. Banquet Sponsors! Your support by 2030. The HBA is working on a task  Just under 20 members attended a LunchBon Construction, Charles Bon-C’est force to explore implementation of the helped us toInc. put on a great event! We Homestudy’s Builders Assoc. of Fargo-Moorhead Session with local building officials to talk recommendations. had Inc. a great crowd and a fun evening Vern Hanson-Hanson Bros., about the latest issues in residential Bryce Johnson,elected Chief Executive Officer,  Members a new Builder board celebrating the year end and construction. Eric Berg-Eric Berg Construction, Inc. 701-232-5846 hbafm.com member at|the Fall GMM on Nov. 24 to fill recognizing all our amazing Award  The New Year Celebration & City Night is Past President Vance Vetter’s seat. The winners. We are already looking Michael Bullinger-Western Productions A top priority for of our Association charity to be28 at the Radisson on Jan. in Fargo. 2016 board directors will be and sworn in at continues forward to doing it all again next year Mayors from Fargo, Moorhead, West Jason Eid-Eid-Co Homes workforce; here are a few things we are doing to act on this issue: the Annual Banquet on Jan. 14. in Bismarck! Fargo, Dilworth & Oxbow will be in • Fundraise The BMHBA welcomes members to Tom Spaeth-Accent $1 million forall the North Dakota State College of and participate attendance on a mayoral Kitchen & Bath attend Career a Lead Renovator Lead The HBA has panel. Science Workforceand Academy. already We will also have special guest Al Mark Spriggs-M & J Construction, Inc. Renovator Initial and Refresher course Jaeger, Secretary of State. If you would raised almost $500,000! on Nov. 30 and Dec. 1, respectively. like to attend, please Tyrone visit the Leslie-Heritage events Homes Visit bmhba.com/events to Trades register.Career Expo on calendar • Hosted the Health, Tech & Nov. 30. This at www.hbafm.com.

Todd Halle-T & S Custom Homes, Inc. event reaches over 3,000 ninth-grade giving them Dickinson Area Builders Assoc. students, Forx Builders Association hands-on of the trades and more! Robert Leslie-Designer Platinum Homes Sponsors—Kuntz Builders, Irene Schafer, experiences Executive Officer Betty McDonald, Executive Officer Inc. and Inc. Winn Construction, Inc. 701-483-0044 dickinsonareabuilders.com • Worked with local NAHB Student Chapters to701-746-4536 critique their Charles Zach-Zach Construction, forxbuilders.com International Builders' Show presentations. John Gunkelman-DakotaSilver Construction  Our regular GMM was held at the Eagles Sponsor—ProBuild  There was good attendance at Slate Club on November 11 & with a moment of 24 will feature The New Year Celebration City Night Jan. Greg Krueger-Krueger Construction Interiornewly Design’s November Builders after honoring our veterans. NDAB-PAC Reception Sponsor—Bosch electedsilence Mayors Johnathan Judd (Moorhead) and Bernie Dardis Hours. Thank you Alissa. Robert Kochmann-Kochmann  Our Home committee busy Chad Olson, Lumber Co. (West Fargo), as Show well as DilworthisMayor Mayor Builders after Hours will be  Fargo The December planning our Home Show in April, Brothers Homes,and Inc. hosted by the Membership Committee Tim Mahoney and Horace Mayor Kory Peterson. updating and adding new features. Banner Sponsor—Roers West, LLC the Board of Directors at Keith’s Security Gary Orth-Cornerstone Specialties Following our Education  Our main focus right Summit, now is onthe HBA of F-M is hosting World. Jim Bisson owner of Keith’s Lock & Key will be retiring theHeather end of December theannual State Meeting here in Dickinson. We trade show Solberg—Platinum Homes its third Trade Showcase. This mini allows we will be helping him celebrate this are looking forward to making this a Also, Thank you to the NDAB 2015 vendors to talk with attendees finishing up continuingand education milestone. special night for Arnold Karsky as he is Partners! We truly appreciate your 2018 NDAB Professional Builders should courses for building contractors, plumbers and power limited installed as our State President.  Our Home Design and Garden Show will support and we have enjoyed serving technicians. received a renewal form forthe 2019.  Following that, we also busy planning our be held April 1, 2 & 3 have at the Alerus Center. you throughout entire year! annual Christmas Party. Newly elected Minot Association of Builders Vice President, Val Voelkering is busy with Forx Builders Association 2019 NDAB Professional Associates program Executive Officer her committee putting final touches to a Stacy Anderson, Executive Office is open and taking applications!!! very special evening at the Elks Club. 701-852-0496 minotab.com 701-746-4536 | forxbuilders.com  We would like to take this opportunity to Contact Sara Frank at ND Association of Builders with  We are Open House” for extend 10th an invitation to Kim andHours Heather • January is Builders After at Elle Interiors. We having are a “Holiday any questions on these programs, applications and our members the office December and other associations to attend excited to give our members theour opportunity to explore their here at qualifications needed. 15th from noon-7pm with food and Christmas party. Gold Partner - Montana Dakota Utilities new showroom! beverage.

Merry Christmas and Happy New Year to

Thank you to everyone who attended our Awards Gala & Annual Meeting. The HBA of F-M celebrated award winners and scholarship recipients with over 200 of its members. The awards went to Clay Dietrich, Dietrich Homes, Inc., Builder of the Year; Paul Krabbenhoft, Coldwell Banker First Realty, Associate of the Year; Heritage Homes, BEAM; Dan Beecher, Foam Doctor’s LLC, Extra Mile; John Koerselman, Red River Drywall &

sara@ndbuild.com or 701-222-2401 • On January 28th we will be installing our 2019 Board of Area Builders Silver Partners - Bismarck-Mandan everyone! Williston Association Directors at the Ramada Inn, Grand Forks. Home Builders Association, Dickinson Janna Lutz, Executive Officer Area Builders Association, Home Builders • Don't delay...get your exhibitor contract submitted today! The 701-572-5744 willistonbuilders.com Bryce Johnson, Executive Vice President Association of Fargo-Moorhead, & 44th Annual Home Design &hbafm.com Garden Show is just a few months 6 701-232-584 Northern Plumbing Supply WABA welcomes new incoming board away. March 22-24, 2019 at the Alerus Center, Grand Forks


  

members: Lance Bevier of Tractor and Equipment Co., Joan Mainwaring of American State Bank and Trust Co., and Bob Radermacher of Bakken Contracting. Mark Schneider, LJA, was sworn in as our incoming WABA President at our Annual Meeting in November. Top Spikes were also recognized: Bill Murphy and Dave Nordenstrom became Life Spikes in 2015! Special thanks to Dot Frank and the

North Dakota Association of Builders

Bronze Partners - Bell State Bank & Trust, Forx Builders Association, Minot Association of Builders, ND Guaranty & Title Co., ND Housing Finance Agency, ProBuild, RDO Equipment Co., & Williston Area Builders Association


December 2015

February 2019 | Building Buzz


PRSRT STD U.S. Postage

PAID 2600 Gateway Ave., Ste. 1 Bismarck, ND 58503

UPCOMING BMHBA EVENTS Builders, Beans & Beer Chili Cookoff - 2/21/2019 42nd Annual Home Show - 3/15 - 3/16/2019

Permit #72 Bismarck, ND 58501


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