February 2023 Building Buzz

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

PROFESSIONALS BUILDING OUR COMMUNITY THROUGH PROMOTION OF SINCE 1958.

JOE HILLERSON, PRESIDENT Boulder Homes PO Box 1421 Bismarck, ND 58502 (701) 400-5554 boulderhomesnd@gmail.com

ANDREW MELDAHL, 1 ST VICE PRESIDENT Pinnacle Homes and Design 214 Riverwood Ave Mandan, ND 58554 (701) 426-0237 andrew@pinnaclehomesnd.com

RORY ANDERSON, 2 ND VICE PRESIDENT Verity Homes 3100 N 14th St, Ste 1 Bismarck, ND 58503 (701) 391-0093 rory@verityhomes.com

JOE VETTER, SECRETARY & TREASURER

Joe Vetter Construction 2523 Powder Ridge Cir Bismarck, ND 58503 (701) 258-9394 joevetterjvc@gmail.com

JAMIE SCHMIDT, PAST PRESIDENT Investcore, Inc. 1601 N 12th St. Suite 605 Bismarck, ND 58501 (701) 223-3030 jamie.schmidt@investcore.com

VICKI MORAN

Hallmark Homes 3200 Rock Island Place, Suite 4 Bismarck, ND 58504-7717 (701) 471-7634 hallmarkhomes@outlook.com

CHIEF EXECUTIVE OFFICER

Dawn Watson dawn@bmhba.com

Office: 701-222-2400

Cell: 701-390-5049

MCKENZIE LAWLER

Dakota OutdoorScapes 8351 Hwy 1804 N Bismarck, ND 58503 (701) 595-0890 mckenzie@ndscapes.com

LORI WILLSON

Northern Plains Plumbing, Heating & Air 2510 Vermont Ave Bismarck, ND 58504

(701) 222-2155 lori@northernplains.net

RON STOTZ CAVES

1365 Tacoma Ave, Suite 1 Bismarck, ND 58504 (701) 751-1162 rons@cavesnd.com

NATHAN TODD

Northwest Contracting 2840 Valley Forge St Bismarck, ND 58503 (701) 226-0526 nathan@northwestcontracting.com

LEROY THOMAS

J.E. Homes LLC PO Box 3121 Bismarck, ND 58502 (701) 400-9163 leroy@jehomesnd.com

SHANE GAFFANEY

American Roofing Supply 1600 Industrial Dr Bismarck, ND 58501 (701) 805-8650 sgaffaney@srsicorp.com

DIRECTOR OF COMMUNICATIONS AND MARKETING

Jennifer Patera jennifer@bmhba.com

Office: 701-222-2400

Cell: 218-416-2439

LAYOUT DESIGNER Elysha Head

The BMHBA consists of building specialists from every section of the construction field and associated industries. Your membership strengthens our voice in Bismarck-Mandan construction sector as well as at a state and national level. If you haven’t already submitted payment, please renew your membership by February, 28 2023.

TJ Tooz

Chris VanSickle

Allan Miller

Kenzie Meide

Kendall Bauer

Shawn Strand

Cheryl Froelich

Brad Bonnet

Delton Stein

Doug Lee

Josh Schaffner

Cassidy Hartman

DeAnna Gratz

Kaylee Knudson

Bob Schuh

Tammy Skogen

Joel Malingen

Brandon Leingang

Vince Wuebker

Trent Mock

Joe Vetter

Terri Woo

Randy Horner

Laurie Wentz

Kayla Bosch

Join

2nd

half of 2022 (July - December)

Kelli Thompson Lori Willson

Bruce Martin

Ross Emineth

Monia Kirkeide

Sherry Schapp

Jerry Benson

Fred Berger

Lisa Bohrer

Collin Walth

Brittany Stuhlmiller

Marty Hoskin

Sunne Modin

Thank you to our members who have helped grow our BMHBA membership over the years by recruiting new companies to join our association. If you know of a company that is interested in joining, contact Brittney Roehrich at brittney@bmhba.com or 701-222-2400.

Your recruitments can now be seen on NAHB.org. Click “My Profile” then “My Spike Referrals.” TopRecruitersasof01/06/2023

500-999 Credits

Kelly Moldenhauer (742.50)

250-499 Credits

Todd Brady (383)

Robb Sattler (295.50)

Mike Todd (288.00)

Lee Mitzel (269.00)

Pat Marback (260)

150-249 Credits

Lori Willson (218.75)

Mike Hopfauf (196.50)

Berna Vetter (190.50)

Colby Well (166.00)

Jack Knutson (161.50)

100-149 Credits

Blair Ihmels (147.50)

Steve Redding (125.00)

Dan Sparling (120.50)

Chad Moldenhauer (111.00)

Jerry Splonskowski (106.50)

50-99 Credits

Vance Vetter (100.75)

Paula Haider (97.25)

Gina Hruby

David Patience (94.50)

Mark Larson (92.00)

Eric Brenden (89.00)

Darren Buffington (83.50)

Kenneth Knodel (67.50)

Art Goldammer (65.00)

Nadine Schaff (57.75)

Scott Moran (57.50)

25-49 Credits

Gerry Rudnick (49.50)

Gerald Hopfauf (45.50)

Drew Knutson (43.00)

Matt Shauer (42.50)

Jeff Sattler (43.00)

Greg Meidinger (39.00)

Greg Zenker (37.50)

Jamie Schmidt (34.50)

6-24 Credits

Jason Frank (22.00)

Shane Gaffaney (19.00)

Melinda Llyod (15.50)

Kelli Thompson (15.25)

Bob Kupper (12.00)

Pete Brendel (9.00)

Hours:

I hope by the time this message reaches everyone that we are starting to get some good temperatures in February with the hopes of an early Spring! 2023 looks to be a challenging year in many ways, however, with every challenge opportunities are created! As I look forward in our marketplace, inventory levels are remaining low, our costs for materials and labor are holding fairly steady, and buyers are beginning to get used to current interest rates. As Spring approaches, there is always optimism in the air, and I’m sure we’ll all have a great year in 2023! We have much to be grateful for, with living and doing business in such a great community!

Recent Events include our 64th Annual Banquet, the 1st Annual Bis-Man Builders Battle of the Bags, and the International Builders Show in Las Vegas. It is always fun seeing everyone at these great events! Thanks for attending, and a special thanks for our local event sponsors your generosity makes our local events possible!

The Home Show is coming up fast, so make sure you have your booth reserved! This is a great event for Builders and Associates alike to present their product or service to the community. The Home Show Committee has been working hard since the last event to make sure this year’s show is another success! The Home Show dates are March 17th & 18th, and there is still time to register at www.bismanhomeshow.com.

The Spring Parade of Homes is right around the corner as well! The dates are April 27th – April 30th. I’m expecting to see excellent participation in this Spring’s Parade of Homes. Be sure to keep an eye out for contracts coming out to participate!

Limited Booths Available!

The North Dakota Legislative Assembly mandates that the North Dakota State Building Code consist of the following model codes: International Building Code (IBC), International Residential Code (IRC), International Mechanical Code (IMC), International Fuel Gas Code (IFGC), International Energy Conservation Code, and the International Existing Building Code. These are nationally recognized codes published by the International Code Council (ICC) and are updated every three years.

A new 2023 North Dakota State Building Code went into effect on January 1, 2023, and consists of the 2021 International Building Code (IBC), 2021 International Residential Code (IRC), 2021 International Mechanical Code (IMC), 2021 International Fuel Gas Code (IFGC), 2021 International Energy Conservation Code (IECC), and 2021 International Existing Building Code (IEBC).

The North Dakota Department of Commerce, Division of Community Services (DCS) is assigned the responsibility of updating and amending the North Dakota State Building Code; however, DCS is not involved in the enforcement of the North Dakota State Building Code. Enforcement is the responsibility of local jurisdictions that elect to adopt building codes.

If a city, county, or township elects to adopt and enforce a building code in their jurisdiction, they must adopt and enforce the same building codes that have been adopted by the State of North Dakota. These jurisdictions are allowed to further amend the North Dakota State Building Code to conform to local needs.

In the first quarter of 2023 the City of Bismarck Community Development Department, Building Inspections Division, plans to recommend local adoption of the same codes adopted by the State of North Dakota and local amendments. Before adopting these codes, the Bismarck City Commission will hold a public hearing in the first or second quarter of 2023. The proposed amendments to the building code may be viewed on the City of Bismarck website.

Please contact the City of Bismarck Building Official; Brady Blaskowski, at 701-355-1467 or bblaskowski@bismarcknd.gov if you have any questions.

Builders FirstSource is your first source for great customer service and high quality building materials.

BUILDING MATERIALS

On January 3, the North Dakota Legislative Session began with the Governor giving his State of the State speech. Since then, your membership with North Dakota Association of Builders has been hard at work, representing your interests.

Through numerous discussions with our Government Affairs Committee and eventual adoption by our Board of Directors, our NDAB members have developed policy for 2023. This policy highlights their concerns on issues that may be addressed during the upcoming legislative session. NDAB is currently tracking and working on bills that ensure that the homebuilding industry continues to thrive in the state; maintain access to safe, decent and affordable housing; preserve a balanced tax structure that adequately pays for essential and mandated services; and further encourage the development of workforce for the industry.

Some of those bills are:

• HB 1106 and 1107 – Shapes how an appraiser that works for an Appraisal Management Company is licensed and regulated in this state.

• HB 1163 – Provides for another pathway to graduation through an alternative career and tech-focused high school curriculum.

• HB 1188 Prohibits service agreements that offer cash for long term listing agreements.

• HB 1180 Exempts cities that provide their own electrical inspections from the state board’s jurisdiction and inspections.

• HB 1199 Provides an appropriation/line of credit to the Department of Career and Tech Ed for the statewide area and career center initiative grant program; gives authorization to Bank of North Dakota to provide line of credit.

Currently we’re monitoring and working about 40 out of about 1,000 introduced bills. And this number is sure to grow, as the deadline for all bills is not until closer to the end of the month.

If you’d like get signed up for our weekly legislative updates, please contact me at kayla@ndbuild.com. We look forward to continuing to be your voice at the ND Legislature.

February 15-16

NDAB Spring Meeting & Social

NorthDakota AssociationofBuilders

February 24-26

Red River Valley Home & Garden Show

HomeBuilders Association

ofFargo-Moorhead

KAYLA PULVERMACHER NDAB CEO

JEFF SATTLER 2023 NDAB PRESIDENT

ANNUAL BMHBA

A BIG THANK YOU TO OUR SPONSORS AND MEMBERS FOR SUPPORTING OUR 2023 ANNUAL BANQUET!

On Thursday, January 19 the BMHBA gathered at the Heritage Center in Bismarck for our 64th Annual Banquet. The new BMHBA directors, Rory Anderson (Verity Homes), Shane Gaffaney (American Roofing Supply), and LeRoy Thomas (J.E. Homes) were sworn in along with the 2023 BMHBA President, Joe Hillerson (Boulder Homes). We are excited to have Rory, Shane and LeRoy join our board! We also said goodbye to three of board members, Greg Meidinger (Aspire Homes) and Bill Schmid (Townsquare Media) Amy Larsen (Apex Homes). We thank you for the support!

A check was presented to two Bismarck State College Carpentry students that were each awarded a scholarship on BMHBA’s behalf. We had a Smart TV Raffle where members could purchase tickets for the chance to win a Samsung 55" and Sono Portable Bluetooth Speaker/Radio. Proceeds from the raffle will go to the Bismarck State College Carpentry Scholarship Fund.

The BMHBA would like to extend our gratitude to our generous sponsors and members! We couldn’t host these events without you.

DINNER SPONSORS PLATINUM SPONSOR

GOLD SPONSORS

SILVER SPONSORS

CENTURY 21 Morrison Realty has agents that fluently speak Spanish, Russian and Ukrainian. Our Bismarck office holds a top 20 ranking out of over 2500 CENTURY 21 offices throughout the United States. We have six offices in six communities throughout North Dakota. We also have experience on our side; CENTURY 21 Morrison Realty is comprised of 122 agents from 5 generations of all different backgrounds ranging from 20 to 85 years old.

Treat your business like a real job, and you will find it the most challenging work you will ever love. If you focus on relationships, success in your business will always follow. This business is about people, not about properties.

Each day you can expect something different. There will never be a day that you don't learn something new. Who you are when things are difficult will make you stand out from others in the industry. Selling real estate will grow you personally and professionally.

We would be in another industry where we can help others. Our purpose is to help our agents grow and make a difference in the lives of their clients. The vehicle we have chosen for this is real estate. What else is there?

We look forward to the continued growth in all our markets, the personal and professional development of our Century 21 Morrison Realty family, and to growing richer relationships within the communities in which we serve. We will always strive to inspire and positively influence the real estate industry.

As a 2nd generation family business, CENTURY 21 Morrison Realty has always been locally owned and operated. We are passionate about assisting our agents in achieving their goals and helping clients build wealth and a lifestyle through home ownership. We are inspired to continue a tradition of extraordinary experiences.

The power of our brand is our people. CENTURY 21 Morrison Realty agents embody true professionalism, have a strong desire to learn and have the perseverance to do the right thing even when it is hard. They are focused on personal and professional growth and keep their clients first and foremost above all things. As a brokerage, we provide more support to our agents and clients through our non-competing brokers and staff, technology, marketing, real estate tools, and systems.

Growing Relationships. Changing Lives. This is why we are here; it is our purpose. We are passionate about helping people obtain their dreams.

CENTURY 21 Morrison Realty believes in giving back. Each year we gather as a family to raise money for different organizations, including Pride's Manchester House, Salvation Army, Helping Hands, Easter Seals and Goodwill of North Dakota, and many more. Within the last few years alone, we have raised over $100,000 for local charities and have volunteered countless hours.

In North Dakota, we are lucky to experience all four seasons. Winter reminds us that a time of renewal is always on the horizon. Just like people, we have the opportunity to renew each day.

c21morrison.com

@century21morrison

@century21morrison

Advanced Mechanical, Inc.

Anderson Custom Cabinets

Big River Builders, Inc.

Bisman Remodel Pros, LLC

Bismarck Heating & Air Conditioning Inc.

Bismarck Title Company

Bismarck-Mandan Home Builders Association

Blue Hawk Audio Video

Builders FirstSource Choice Bank

Cottingham Insurance Agency, DDC Inc.

COUNTRY Financial

Dakota Community Bank & Trust

Dakota Supply Group

(formerly Western Steel & Plumbing)

Decorating Den Interiors

Design that Sells

Dusty Barn Designs

Erica G. Thune

Fabricators Unlimited

FrankieSue Pierson with Verity Homes

Front Street Millwork & Lumber, Inc.

Haider Glass Specialties

Hallmark Homes, Inc.

House of Color, Inc.

Interior Finish & Remodel Inc.

Knife River is a full service aggregate-based construction company, providing ready-mix concrete aggregate sales and delivery and concrete construction services. We provide services throughout North Dakota for public, private and commercial construction projects.

Interiors by Design

Joe Vetter Construction, Inc.

Keller Hearth 'n Home Products

Knutson Homes, Inc.

Magi-Touch Carpet One Floor & Home

Mattress Firm

Myhre Concrete Design, Inc.

Northern Plains Plumbing, Heating & Air

Northwest Contracting

Organize with Lexi

Paramount Builders, Inc.

Professional Touch Cleaning

Redford Signature Homes Inc

River + Ranch Magazine/Bismarck Magazine

Rivers Edge Plumbing and Heating, Inc.

Security First Bank of ND

Silver Ranch

Spiffy Biffs

SPS Companies, Inc.

Starion Bank

Superior Window Coverings

T&M Electric

The Painters, Inc./Precision Wood Finish Inc

The Title Team

Tobias Marman Construction

701-580-4527 Bismarck-Mandan | Washburn | Beulah Mark Roningen - Business

Thank you to all our sponsors for your support. Our success starts with you.

What a great first year of our Birthday club! Congratulations to all our winners from 2022!

If you want to be included in our Birthday Club, please email your birthday to Jennifer Patera at jennifer@bmhba.com. You will receive a celebratory email the day of your birthday and be entered into a drawing for a dozen donuts from Bearscat Bakehouse during the month of your birthday.

Heidi Deitrich MyhreConcreteDesign

Bryan Brendel Brendel’ sLawnSprinkling

Tae Pfifer DakotaCommunityBank&Trust

Kris Svanes ImperialFlooring

Tabetha LaBere CENTURY21MorrisonRealty

Celeste Burke ChoiceBank

Janessa Wright InteriorFinish&Remodel

Don Klym ThePainters,Inc.

Cassidy Hartman ConsolidatedConstructionCompany

Wes Engbrecht CapitalElectricCooperative

Erika Drolc BismarckTitleCompany

Jamie Benz AdvancedMechanical

As the Federal Reserve continues to fight inflation, mortgage rates increased rapidly in 2022, starting the year at 3% and rising above 7% before dropping back to roughly 6.5% at the end of the year. How do rapidly rising mortgage rates affect housing affordability?

The difference between a slightly more than 3% mortgage rate and a 7% mortgage rate adds roughly an additional $1,000 mortgage payment to a typical, new median-priced single-family home and prices 18 million U.S. households out of the market for the home.

This means that a mortgage payment on a $450,700 home would have increased from $1,925 in January 2022 to $2,923 in late October when mortgage rates topped 7%.

And while mortgage rates fell back modestly to a level of 6.42% at the end of the year, the monthly mortgage payment on the same home increased from $1,925 in January when rates were just above 3%, to $2,740 in December when rates doubled, adding more than $800 to the cost of the home loan.

Higher mortgage rates have clearly worsened housing affordability as home prices remained high in 2022. As the

charts below show, each 100-basis-point rise in mortgage rates requires roughly an additional $10,000 in household income to qualify for a similarly sized mortgage loan, and prices approximately five million additional households out of the market for a home at the same or similar price level.

Violations of safety rules on jobsites are now more expensive as the Labor Department late last week announced its annual cost-of-living adjustments to OSHA civil penalties for 2023. The new penalty amounts are effective Tuesday, Jan. 17.

OSHA’s maximum penalties for violations will increase from $14,502 per violation to $15,625 per violation. The maximum penalty for willful or repeated violations will increase from $145,027 per violation to $156,259 per violation.

Visit the OSHA Penalties page and read the final rule for more information.

The safety of residential construction workers is a top priority of NAHB and should be the top priority of every builder, remodeler and contractor. The most common types of construction site injuries are fall injuries. This aligns with OSHA’s most-cited violations on jobsites.

Top OSHA violations for fiscal year 2022:

1. Fall Protection – General Requirements: 5,260 violations

2. Hazard Communication (Chemicals): 2,424

3. Respiratory Protection: 2,185

4. Ladders: 2,143

5. Scaffolding: 2,058

6. Lockout/Tagout: 1,977

7. Powered Industrial Trucks: 1,749

8. Fall Protection – Training Requirements: 1,556

9. Personal Protective and Lifesaving Equipment – Eye and Face Protection: 1,401

10. Machine Guarding: 1,370

The U.S. Department of Labor recently published a proposed rule updating the test for determining whether a worker is an employee under the Fair Labor Standards Act (FLSA) or an independent contractor. NAHB last week submitted formal comments opposing the proposed rule, which is intended to combat employee misclassification, and would alter the test for independent contractor status under the FLSA as last articulated by the prior Administration.

The executive summary of the proposed rule notes: "[Workers who] are in business for themselves ... play an important role in the economy and are commonly referred to by different names, including independent contractor, selfemployed and freelancer. This proposed Rulemaking is not intended to disrupt the businesses of independent contractors who are, as a matter of economic reality, in business for themselves."

However, NAHB, and many other groups, argue that the language of the new test introduces new, undefined, vague terminology, and would reclassify legitimate independent contractors – including those with their own businesses –into employees, and threatens to impact many industries that rely on the subcontractor business model, including residential construction.

The proposed rule attempts restore a "totality-of-the circumstances" analysis, setting forth six non-weighted factors to consider when determining whether a worker is an employee or an independent contractor. The test's ultimate inquiry is whether, as a matter of economic reality, the worker is economically dependent on the employer (and thus an employee), or in business for themself (and thus an independent contractor).

The six factors include:

1. Is the work performed an integral part of the employer's business?

2. Does the worker's managerial skill affect the worker's opportunity for profit or less?

3. Is the relationship between the worker and employer permanent or indefinite?

4. What is the nature and degree of the employer's control?

5. Does the worker use specialized skills to perform the work, and do those skills contribute to businesslike initiative?

6. Are investments by a worker capital or entrepreneurial in nature?

The independent contractor rule that went into effect in early 2021, which NAHB supported, provided much needed clarity, uniformity, and simplicity to the independent contractor analysis and accounts for the realities of the modern workplace.

NAHB and more than 200 business groups, including the Associated Builders and Contractors and Associated General Contractors of America and many state and local Chambers of Commerce, call on the Labor Department to withdraw the proposal.

"Not only does the Proposed Rule ignore the realities of how businesses and independent contractors work together in 21st century America, but in so doing, it ignores the preference many workers have to remain independent contractors," the groups state in the comment letter.

NAHB has been engaged in the rulemaking process from the beginning and will continue to monitor and provide updates as the rule moves forward. Importantly, this proposed test will not impact tests by the IRS or other federal agencies.

We invite you to discover Sunrise View Estates...

Located on a tranquil northern edge of Mandan, Sunrise View Estates is the newest development in the up and coming area of Mandan. Sunrise View offers a planned community nestled along the open grasslands, as well as being near the new Starion Sports Complex, the new Mandan High School, and the new Middle School.

This development features large lots, a new city park, lots of green space, and beautiful views. Just minutes from a variety of stores and dining options. You can get anywhere in the metro area quickly as you will be a short distance from Interstate 94 via Highway 1806. Just north of the development, a future

beltway and bridge will be completed, gaining unlimited access to anywhere you need to be.

The potential for growth in this area means endless possibilities. Just to the west of this development, is another master planned community being built along side Sunrise View Estates.

This development is perfect for building your first home or your lasting forever home. This development offers a variety of lots that will fit whatever needs your heart may desire.