January 2020 Building Buzz

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BISMARCK-MANDAN HOME BUILDERS ASSOCIATION JANUARY 2020 || WWW.BMHBA.COM


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

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

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

SINCE 1958.

www.twitter.com/bmhba

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

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

www.houzz.com/pro/bmhba

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

Aspire Homes 701-426-8583 greg@daretoaspire.com

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

2ND VICE PRESIDENT Triton Homes 701-223-3030 jamie.schmidt@investcore.com

Hallmark Homes 701-471-8796 hallmarkhomes@outlook.com

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

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Dakota OutdoorScapes 701-214-1255 mckenzie@ndscapes.com

PAGE 14 Great Plains Rehab 701-400-0676 rtank@primecare.org

Joe Vetter Construction 701-258-9394 joevetterjvc@gmail.com

PAGE 13 Apex Builders 701-527-7899 amy@apexbuildersnd.com

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Dot Frank Simone Marchus Elysha Head


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

Cole Anderson

Kent Hildebrand

Jon Wagner

Mike Radke

David Buchholtz

Nicole Stoddard

Kristin Eisenzimmer

Beth Brenny

Tom Robinson

Cy Fix

Brenda Foster

Jeremy Kukowski

Eric Budd

Mark Stumpf

Cassidy Kraft

Jason Frank

Bill Heim

Tena Liudahl

Joe Hillerson

Mary Maier

Bryce Thomas

Robb Sattler

Bridget Gerhardt

Jesse Peterson

Dave Skalicky

Dana Schlomer

Steve Iverson

Tom Smith

Lisa Vatnsdal


2020 Happy New Year BMHBA members. I hope all of you had a wonderful Christmas and New Year. As we look forward to a new year, I must first give a thank you to the BMHBA Board of Directors from last year. Many of you have served the board for many years and I want to thank you for that service. I am excited to welcome our new Board of Directors and see what the future holds for our association. I would also like to wish Rory Anderson of Verity Homes a farewell and well wishes on his relocation. My name is Jeff Sattler. I have been involved in construction for 20 years and have served on the BMHBA board since 2015. In addition to time served on the board, I am an owner of Sattler Homes, Inc. I am married to Marcie and together we have three children April (7), Hallie (5) and Adam (3). We enjoy camping and boating in the summer months and I enjoy snowmobiling in the winter. This year was supposed to be my farewell to the board but I have been summoned to stay active another year. I would like to thank everyone for having the confidence in myself to lead this organization for a second year. The Association ended 2019 asking the Bismarck and Mandan City Commissions to adopt the State of North Dakota Building Code. At the meeting we got some of what we asked for, the City of Bismarck Community Development Department is going through the title 4 ordinance and adjusting it to follow along with state code adoptions. After they are finished with that, they will present

Regards,

2020 PRESIDENT :: BMHBA

it to us before it goes back to the City Commission on Jan. 28. After that, I will share with our membership what changes we have to look forward to in our upcoming building season. As we enter 2020, the association will continue attending commission meetings and fighting for our members when the need arises; attending quarterly meetings with City of Bismarck officials; and fundraising for PAC so we can maintain our voice during election cycles. I look forward to seeing everyone at the Annual Dinner, which is being hosted at the Harvest Event Center on Jan 17. This event will consist of the Inauguration of the 2020 Board of Directors, a fundraiser for our scholarships, and an open bar. Make sure to watch out for the following:

• • • • • • • •

Annual Dinner on Jan. 17, Harvest Event Center in Mandan Inauguration of the 2020 Board of Directors, Scholarship Fundraiser, Open Bar 2020 Home Show March 13th – 14th Get your booth at www.bismanhomeshow.com Strategic Planning & Orientation for the 2020 Board Jan. 28 Events Committee Survey going out to get feedback and member preferences for events in 2020. New Building Codes – Currently in progress with City Commission and Community Development Dept. Association Bylaw Revisions proposed and voted on at the Annual Banquet on Jan. 17


MONTH YEAR JANUARY

2015 2016 2017 2018 2019 0

9

2015 2016 2017 2018 2019

0

10

0

0

0

0

0

2

2

4

FEBRUARY

3

4

5

2

0

MARCH

21

22

14

2

9

APRIL

52

29

40

27

26

MAY

31

46

29

16

28

JUNE

31

43

48

24

18

JULY

40

16

60

22

17

AUGUST

20

48

16

27

19

SEPTEMBER

28

44

26

22

23

OCTOBER

54

14

22

15

36

NOVEMBER

16

11

9

11

14

DECEMBER

1

0

0

1

TOTAL

297

286

270

169

200

YTD TOTAL

296

168

200

Data not collected for the ETA in 2015 and 2016.

1

0

0

2015 2016 2017 2018 2019

2015 2016 2017 2018 2019

2015 2016 2017 2018 2019

1

0

0

2

0

0

2

0

0

2

0

0

0

0

2

0

1

2

6

5

0

0

0

0

3

0

1

1

0

0

0

1

11

6

4

8

2

0

3

0

0

0

9

9

4

2

4

3

6

14

12

8

16

11

18

2

4

0

6

14

5

11

11

14

5

6

4

26

13

11

15

11

17

2

5

5

0

14

16

7

20

10

10

2

2

21

20

13

13

4

1

6

3

1

1

8

11

4

4

6

3

3

2

9

13

6

11

12

0

5

1

5

1

13

9

4

3

11

6

1

7

17

7

13

20

10

8

2

9

4

5

8

9

6

8

5

8

3

10

16

14

26

11

10

3

3

4

5

2

9

9

9

6

5

4

7

3

9

29

20

9

9

17

10

7

5

3

4

7

3

7

1

3

0

1

7

7

7

6

2

2

5

0

0

0

3

4

1

0

2

0

0

0

0

0

0

1

0

4

0

0

0

2

0

45

27

36

132

123

114

116

71

67

40

37

28

20

83

80

51

61

60

27

36

132

123

114

116

71

66

40

33

28

20

83

80

49

61

60

286

270

YTD Total

-3%

-6% -38% 19%

-40% 33%

-7% -7%

2% -39%

-39% -18% -15% -29%

-4% -39% 24% -2%

Total

-4%

-6% -37% 18%

-40% 33%

-7% -7%

2% -39%

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

-4% -36% 20% -2%

BURLEIGH COUNTY SINGLE FAMILY DWELLING APEX BUILDERS 14276 PARKER RANCH RD APEX BUILDERS 1625 PLAINS BEND SE MANDAN COUNTY SINGLE FAMILY DWELLING APEX BUILDERS 1613 PLAINS BEND SE APEX BUILDERS 4129 STEEL PL BISMARCK SINGLE FAMILY DWELLING APEX BUILDERS 4131 STEEL PL BIG RIVER BUILDERS 2719 LANGER LN BOULDER HOMES 4137 BRITANNIC LN E HOMES, INC 4072 INTREPID CIR KIND STAFFING 4905 WEYBURN DR

45

KNUTSON HOMES 3802 ENDEAVOR PL KNUTSON HOMES 8404 NICKLAUS DR PREMIER HOMES 5515 GOLD DR PREMIER HOMES 4003 SILVER BLVD RANDY BOWMAN 13630 NW 34th ST RIDGELINE CONTRACTING 1524 MUTINEER PL SATTLER HOMES 309 BOSTON PL SUNRISE BUILDERS 3619 MAYFLOWER CIR VERITY HOMES 208 KENNER LOOP VERITY HOMES 210 KENNER LOOP


If you think you’ve seen the most enthusiastic Salvation Army bell ringers, think again! On Dec. 6, staff from the BMHBA rang bells at Gateway Mall on Realtor Ring Day. There may have been some carols sung as well—but don’t ask us to sing them again.

Our members make our world go ‘round. This month we would like to thank Basin Electric Power Cooperative for their extremely generous sponsorship of $1,500 for Kids Build Mandan 2020. Kids Build Mandan is a full day event hosted in conjunction with the MAC program of Mandan. 4th and 5th grade students are given the opportunity to learn about the building industry and all it has to offer. With a sponsorship as generous as Basin Electric’s, Kids Build Mandan will surpass any expectations the students previously had. Thank you Basin Electric!

The BMHBA’s Membership Support Campaign is open until Jan. 31. The campaign allows you to choose precisely where your sponsorship dollars go in 2020. Returning your contract ensures you will be recognized in the Building Buzz, on the BMHBA’s Facebook page, and at the event of your choosing. Please email simone@bmhba.com or call 222-2400 to have a contract sent your way. We would like to thank the following members for returning their Membership Support Campaign contracts: Basin Electric, BEK Communications, CS Doors, Electric Systems Inc, Front Street Millwork & Lumber, Kupper Chevrolet, RJR Maintenance and Management, Townsquare Media and Vance Vetter Homes.

On Dec. 11, Caves hosted a Builders Only Social for builder members of the BMHBA. Builder members were treated to appetizers, a fridge full of beer and door prizes. Two neon clocks were given away to two lucky builders. Thank you to Caves for hosting our builders, and to all the builder members who joined us! If you are interested in hosting a Builders Social in 2020, please contact Simone at 222-2400.

If you haven’t set a New Year’s resolution for your business yet, now is the time. We’re hoping a booth at the Home Show is one your goals. Statistically, the average homeowner that attends a home expo this year will spend $10,000 on their home, whether it’s making improvements, major renovations, or updating their interior décor. Being in the Home Show guarantees exposure to more than 4,500 people. If you’ve resolved to follow a budget in 2020, you’ll be delighted to know that members of the BMHBA receive reduced rates on booths. Booking a booth is easy by visiting bismanhomeshow.com/exhibitors or calling Simone at 222-2400.


The Bismarck-Mandan Home Builders Association is excited to enter another year with you as a member. Come celebrate your membership and welcome the new board members of 2020 at the Annual Banquet. On Jan. 17, from 5:30-8:30 PM, we will be enjoying a fine dining buffet, open bar and live music. If you would like to register OR sponsor, please email simone@bmhba.com or call 222-2400. Thank you you to the following sponsors for making this event possible: BNC National Bank, Front Street Millwork & Lumber, Kirkwood Bank & Trust, Plains Commerce Bank, RJR Maintenance and Management, Starion Bank, and Townsquare Media.

North Dakota Dollars for Scholars is accepting scholarship applications from North Dakota high school seniors and current college students. A total of $85,000 in scholarships will be awarded, ranging from $500 to $2,500 each for the 2020-21 academic year. Every student who graduated from or will graduate from a North Dakota high school can apply, even if they aren’t from a high school with a local chapter. Schools with local chapters offer scholarships for their specific schools. Students from a wide range of backgrounds are encouraged to apply. Scholarship offerings cover a variety of categories including vocational/ technical schools, military family, community service and continuing college students. The application deadline for all North Dakota Dollars for Scholars scholarships is April 1, 2020. Scholarship details and the online application are available at northdakota.dollarsforscholars.org. To apply, students must create or update a profile in the online student center. This profile allows students to be matched to scholarships based on their personal information. Students will also be able to use this profile to find future opportunities from their local chapter (if the high school they graduated from has a local chapter), North Dakota Dollars for Scholars and the national organization.

By the time you’ll be reading this, it will officially be 2020. The year ahead of us has lots in store for our members, but for a moment we’d like to reminisce on what a wonderful year 2019 was. In 2019, the Bismarck-Mandan Home Builders Association… • Began the year with a new Board of Directors: Jeff Sattler, Rory Anderson, Greg Meidinger, Joe Hillerson, Lynn Klein, Greg Zenker, Susie Franklin, Chad Moldenhauer, Bill Schmid, Brian Eiseman, Marc Menge, and Jamie Schmidt. • Occupied 96% of all available booth space at the 2019 Home Show! Thank you to all exhibitors who participated and made the 2019 Home Show such a memorable event. • Gained 16 new members: Lowe’s Home Improvement Center, Anderson Yardworks, LLC, Heritage Exteriors by Leingang, Mattress Firm, Nelson Builders, LLC, J&M Excavation, Brendel’s Lawn Sprinkling, Inc, Rock Ridge Plumbing and Heating, Franz Reprographics, Bremer BankCary Otterness, Burleigh Builders, Legendary Homes, Duel Electric, Moore Engineering, Starlight IT & Security, and Murex Petroleum Corporation. • Hosted 29 builders with 47 homes in the Spring Parade of Homes, and 17 builders with 25 homes in the Fall Parade of Homes! • Held 4 Builders Socials! • Celebrated Dot Frank’s 5th year at the BMHBA on January 13, 2019! Thank you to each sponsor, event attendee, and member of the Bismarck-Mandan Home Builders Association. Without your support, we don’t know where we would be. We are so grateful to be entering a new year with you!


Teaming up with HOPE International to fight poverty around the world, while also supporting locally-operated charities here in North Dakota, Bismarck-based home builder Verity Homes is pleased to announce the sale of its latest charity home build. Participating in the nonprofit’s “Homes for Hope” program for the fourth time, Verity Homes worked with several of its trade partners on the construction of 305 Cobblestone Loop in Mandan, N.D., and 100% of the sale proceeds will be split between HOPE International and Furry Friends Rockin’ Rescue, a local animal shelter. “Everyone involved that supports us through donations, labor or material discounts enable all of us to do what we normally do every day and are good at, while helping those in need both locally and globally,” Goldammer said. “HOPE International has been a great partnership for Verity, and we plan to continue working with their Homes for Hope program to put our homebuilding skills to great use for the benefit of our local communities.” Since 1999, Homes for Hope has worked with the homebuilding industry to generate more than $10

million in financial support for HOPE International’s microeconomic development programs that fight poverty around the world. The organization has completed more than 100 homes to date, resulting in an estimated one million micro loans aimed at breaking the cycle of poverty by empowering aspiring entrepreneurs. Partnering with HOPE since 2015, Verity alone has empowered more than a thousand individual entrepreneurs with funding to help them establish their businesses. Total charitable donations from Verity’s Homes for Hope projects have generated between $40,000 and $60,000 per home for HOPE International and local nonprofits. “We just fell in love with HOPE’s philosophy of ‘building locally to fight poverty globally,’” Goldammer said. “Just as HOPE enables the individuals it serves to utilize their God-given talents, we’re also able to make use of our talents in service to them. And we’re also able to give back to our local community by supporting nonprofits like Furry Friends Rockin’ Rescue, a cause near and dear to our hearts.”

During the first week in January, the 2020 contractor license renewals will be available online in the contractor block at firststop.sos.nd.gov. To renew your license, have your ND login and password ready. If you have your current certificate of liability insurance, you may upload it with your renewal. The certificate MUST show the Secretary of State as the certificate holder. Before renewal, make sure your business is in Good Standing with Job Service, Workforce Safety and Insurance (WSI), and the Secretary of State’s office for your organization’s annual report. When the renewal is completed, go to the My Work Queue where you can print your contractor’s license, receipt and an acknowledgement of your renewal. If you were licensed for the first time as a contractor in 2019 and do not have a ND login and password, contact the Licensing Unit at 328-3665 or sosadlic@nd.gov.

The North Dakota Department of Career and Technical Education (CTE) is taking public comment on the proposed State Plan for the Strengthening Career and Technical Education for the 21st Century Act or Perkins V. Perkins V provides federal funding for secondary and postsecondary CTE programs in North Dakota. The 2019-20 federal award to North Dakota is $5,037,372. To receive these funds, North Dakota must submit a fouryear plan. Highlights to Perkins V and the North Dakota State Plan are as follows: • • •

Introduction of a Comprehensive Local Needs Assessment to determine local funding Selection of a new Secondary Program Quality Indicator – Work Based Learning Opportunity Funding allocation changes with an emphasis on special populations and innovative programs

The State Plan can be access at www.cte.nd.gov.

Also, the public will have the opportunity to learn more on the North Dakota State Plan through virtual Public Hearings. Refer to the following link for dates, times and how to access the hearings -www.cte.nd.gov/PerkinsStatePlan. The public comment period on the proposed State Plan will conclude on Jan.31, 2020. Comments can be submitted via email at cte@nd.gov. Please reference page number and plan section when providing a comment. For more information contact Wayde Sick at 701-328-2259 or wasick@nd.gov.


he majority of single-family and multifamily housing production in the nation is occurring in counties with the greatest concentration of millennials. However, in a warning sign that the housing affordability crisis persists and more construction is needed, the pace of housing production in areas with the greatest concentration of millennials lags the rest of the nation, according to the latest quarterly NAHB Home Building Geography Index (HBGI).

due to the greater demand for inventory resulting from the relatively younger population that resides there.”

Meanwhile, multifamily construction in millennial counties — which accounts for 80% of all apartment activity nationwide — picked up in the third quarter, though the improved growth rate was slower than the nationwide pace. “The outsized concentration of multifamily construction in areas with a large proportion of millennials is not a surprise, but it is also a reminder of the mismatch between housing wants and housing availability that is challenging the forThe third quarterly release of the HBGI sheds new sale market,” Dietz noted. light on the housing market by focusing on where The HBGI is a quarterly measurement of building conditions millennials live. “Millennial counties” are defined across the country and uses county-level information about as geographic areas where at least 26% of the single- and multifamily permits to gauge housing population consists of this growing demographic construction growth in various urban and rural regions. group. These millennial counties are diverse, representing major metro areas including several California markets, Seattle, Portland, Boston and Washington, D.C., as well as more rural counties in places such as Ohio, Kansas and Missouri. The HBGI found that those counties with elevated millennial shares account for 62% of the entire U.S. population. These counties also account for 59% of singlefamily home building nationwide. “On the surface, these numbers look similar, but you would expect the singlefamily construction share to be higher in millennial intensive areas, which tend to feature greater amounts of household formation and population growth that require additional housing,” said NAHB Chief Economist Robert Dietz.

Other findings in the third quarter HBGI: •

Growth in single-family construction was insufficient to keep pace with demand in the third quarter of 2019, continuing along a weaker trend due to the housing downturn from last year.

“The HBGI highlights the ongoing challenge of housing supply, particularly for younger households seeking affordable rental housing or attempting to gain a toe-hold on the homeownership ladder,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn. “While counties that have greater concentrations of millennials are where most of the single-family and multifamily construction in the U.S. is occurring, those same areas have recently seen relatively weaker growth rates for home construction.”

Apartment construction is leveling off nationally but spreading out geographically, as multifamily building showed some gains in less densely populated areas, such as small towns and rural counties.

Apartment construction in large metro core and large metro suburban areas rebounded in the third quarter, reflecting the highest growth rates in these regions in two years.

Weakness in manufacturing areas continues to limit home construction. Manufacturing counties’ share of multifamily home construction decreased by 0.5 percentage points to 6.3%, while single-family construction declined at a faster rate in such areas compared to non-manufacturing areas.

“The new NAHB HBGI data shows two consecutive quarters of declines for single-family construction in counties with larger numbers of millennials, the very areas that most need additional home construction,” said Dietz. “These localities are more acutely affected by supply-side constraints

A slow shift of single-family construction from close-in suburbs to exurban locations continues due to land and lot availability and cost. This market environment, made worse by inefficient zoning practices and regulatory burdens, will continue to create a mismatch between where housing demand is growing and where housing supply can be affordably realized.


I am so honored to be your NDAB President for 2020 and I would like to take this opportunity to introduce myself. I am Nate Applegren of Applegren Construction, Inc. in Grand Forks, ND. Over the years I have been involved with my Local, State and National Associations on many levels. It has been my privilege to represent the NDAB at National Events and Meetings and I look forward to continuing to do so in my new capacity as President. I would like to thank all of you that were able to travel to Grand Forks for the NDAB Annual Meeting and Banquet and be there to support and celebrate with me while myself and the new 2020 NDAB Board of Directors were sworn in. It was a very special evening for myself and my family and I am glad I was able to share it with several of you. In the coming year I will be challenging my fellow members to take a hard look at our membership statewide. With some of our local HBA's showing promising growth there are still areas of the state that we are struggling and it is important no matter where your located, no matter what your retention rates are to continue to fight to keep those members we do have in good standing and to continue to recruit new members into the associations as well. It is not just the responsibility of your local HBA to put the work in to recruit and maintain membership. We as members need to reach out peer to peer and educate new businesses on the benefits of membership as well as remind the existing members the value of having a 3-in-1 membership Local, State and National. I would also like to encourage you to reach out to our NDAB staff: Kim Schneider, CEO kim@ndbuild.com and Sara Frank, Communications and Government Affairs Director sara@ndbuild.com. Kim and Sara are both registered lobbyist for NDAB, as well as handling the daily operations of the office they also work to promote and oversee, event planning and coordination, fund raising, sponsorship, rebate programs, PAC relations and reporting and run our NDAB Professional Programs. Please direct any questions you may have about NDAB Businesses and Events as they are an asset to the office to be utilized by our members. Thank you, Nate Applegren

Happy New Year and welcome 2020! 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. 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 2019! 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: David Reid HBA of Fargo-Moorhead: Scott Persoon Forx Builders Association: Aaron Rosten Forx Builders Association: Jim Sandbeck Bismarck-Mandan HBA: Greg Meidinger Bismarck-Mandan HBA: Joe Hillerson Dickinson Area Builders Association: Steve Schwab Dickinson Area Builders Association: Ben Olin Minot Assoc. of Builders: Pat Garner Minot Assoc. of Builders: Shane Lider Western Area BA: JoAnn Callahan Western Area BA: Jeremy Stahowiak

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. If you are attending this years NAHB International Builders Show in Las Vegas, we invite you to join us at the State Reception being held on Tuesday, January 21 from 5:00-7:00 pm at the Westgate. Our social is a great opportunity to network with other members from ND, SD, MN, WI and IA. Always great food, friends and a fun time. 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! Take care, Kim Schneider


According to a new study from the MIT Humanitarian Supply Chain Lab, factory -built houses — i.e., modular, panelized or pre-assembled homes — could help increase affordable housing stock and significantly aid in disaster response and recovery. However, factory-built homes comprise only 3% of singlefamily homes in the United States. What can be done to better utilize these types of homes? The report, “Disaster Housing Construction Challenges in America,” explores recommendations for emergency managers, state housing agencies, policymakers, community leaders, home builders and manufacturers of factory-built houses and components on process improvement, decision support and direction setting to help address housing affordability and post-disaster response. These recommendations are intended to better address the challenges faced by disaster housing, leverage the potential of factory-built housing at scale, approach the nation’s affordable housing challenges from a new direction, and produce better disaster recovery outcomes for all Americans. “Despite the problems America faces with affordable housing and disaster housing, we lack a strategy that brings temporary-to-permanent housing into our collective toolkit,” Michael Windle, researcher at the Humanitarian Supply Chain Lab and author of the report, stated in a press release. “Improved construction technology alone cannot

solve these issues, but factory-built private sector including NAHB staff and housing should be part of the solution.” members of the Builder Systems Councils’ (BSC) modular and panelized Points of note from the report and its subcouncils to discuss topics related to recommendations include: factory-built construction, including codes, capacity of the industry to ramp • Developing more uniform code up supply post disaster, and what the adoption across states and land development process entails. MIT communities could help speed solicited additional information at the recovery. 2018 NAHB Building Systems Housing • Acknowledgement that zoning Summit through a presentation and ordinances, architectural Q&A session with attendees. ordinances and permitting

requirements create challenges to housing recovery after disasters. The report recommends FEMA and states track the impact of such ordinances and requirements and use that information to drive longterm improvements. Recognition that FEMA’s temporary housing assistance only lasts 18 months, whereas funding for restoring permanent housing can take several years. Description of “Building Back Better” as bringing existing buildings up to, but not exceeding, modern construction standards and codes. Acknowledgement of workforce challenges and the smaller market share for factory-built housing, with recommendation for further study and development of strategies to address both.

As part of its research process, the MIT project team hosted a roundtable in Washington, D.C., in June 2018 with representatives of federal and state agencies and participants from the

“Being approached by a prestigious university like MIT goes to show that NAHB and the Building Systems Councils are considered thought leaders in the offsite construction industry,” stated Ken Semler, 2019 BSC chair. “Also, the study further showcases systems-built homes as a solution for a wide variety issues facing the housing industry, including speed of construction in post-disaster areas.” A recent Forbes article highlighted the report as well, along with information presented at the 2019 Building Systems Housing Summit by Ed Hudson of Home Innovation Research Labs, in correlation with the increased frequency of natural disasters in California. The author of the article, John McManus of Hanley Wood, will be speaking in the Building Systems Councils Lounge at the International Builders’ Show in Las Vegas on Tuesday, Jan. 21, with representatives from Woodside Homes and Sekisui House.

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The House Ways and Means Committee approved, on a • For 2022-2025, the SALT cap would return to $10,000. Under TCJA, the SALT cap (along with many other provisions) expires largely party-line vote of 24 to 17, the Restoring Tax Fairness after 2025. for States and Localities Act (H.R. 5377), a bill to address concerns from higher-tax states regarding the state and To offset the revenue loss, starting in 2020, the local tax deduction limits. legislation would increase the top marginal tax rate to 39.6% from its current 37%. In addition, it would restore the lower As part of tax reform, the Tax Cuts and Jobs Act of 2017 pre-TCJA bracket thresholds for the 39.6% rate, making (TCJA) lowered marginal tax rates, increased the standard more income subject to the higher tax rate. deduction, largely eliminated the Alternative Minimum Tax (AMT), and made changes to itemized deductions, including Because the marginal tax rate increase and bracket lowering the mortgage interest deduction cap and limiting threshold changes are made permanent under the bill, and to $10,000 the maximum deduction taxpayers may claim for the SALT relief is temporary, the Committee on Joint state and local taxes (SALT). The SALT deduction allows Taxation estimates this bill will raise $6.2 billion over ten itemizing taxpayers to deduct from their taxable income years. property taxes paid as well as either state and local income For states with high income and/or property taxes, the or sales taxes. Prior to TCJA, taxpayers could generally claim $10,000 limit on SALT deductions has been politically an unlimited SALT deduction.* challenging. Republicans have generally defended the TCJA’s The Restoring Tax Fairness for States and Localities Act limitations while the SALT cap has been a political target of would make the following changes: Democrats. It is likely this legislation will pass the Democratcontrolled House, but it is not expected to be considered in • For 2019, the SALT limit would be doubled for couples to the Republican-controlled Senate. $20,000. Singles would continue to have a $10,000 cap. • For 2020 and 2021, the SALT cap would be eliminated for all taxpayers.

*Taxpayers subject to the AMT are unable to claim the SALT deduction. In addition, the Pease limitation, which was repealed in TCJA, reduced the total value of deductions some taxpayers could claim.

On the latest episode of the Housing homeownership back within reach. Developments podcast, NAHB CEO Our efforts also focused on pushing Jerry Howard and Chief Lobbyist Jim back against burdensome regulations Tobin look back at 2019. and harmful policies like rent control NAHB had several advocacy wins and excessive codes requirements. This this year and helped to move the outreach was fueled by member needle on key issues that affect the engagement at the local, state and building industry. Throughout 2019, the national level. association focused on the housing And in a victory for housing affordability crisis, devoting resources affordability, the Trump administration to bringing the American dream of

reached a deal on the U.S.-MexicoCanada trade agreement. Once ratified, this deal will help stabilize the cost of building materials necessary in the home building process, which will help decrease the cost of building and buying a home. A list of the podcast outlets with official Housing Developments feeds can be found at nahb.org/podcast.


National home prices rose at a faster annual growth rate in September compared to the previous month. The Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 4.7% in September, following an increase of 4.3% in August. Seattle reported the highest gain while three metro areas — San Francisco, Chicago and Boston — experienced home price declines in September. On a year-over-year basis, the Case-Shiller U.S. National Home Price NSA Index posted a 3.2% annual gain in September, up from 3.1% in August. Lower mortgage rates and a solid labor market boost housing demand. Home price appreciation continues with strong demand and tight inventory. Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 7.7% in September, following a 2.5% increase in August. On a year-over-year basis, the FHFA Home Price NSA Index rose by 5.1% in September, after an increase of 4.8% in August. NAHB economist Jing Fu shares more in a recent Eye on Economy post online at bit.ly/2YvmPQ0.

The Federal Housing Administration (FHA) has announced its loan limits for 2020. The nationwide rise in median home prices indicates most buyers across the country will see increases. The FHA floor will increase from $314,827 to $331,760 for single-family home loans. The FHA national low-cost area mortgage limit of $331,760 is set at 65% of the national conforming limit of $510,400. The base limit applies to areas where 115% of the area median home price is less than $331,760. The FHA high-cost ceiling is 150% of the national conforming loan limit and will increase from $726,525 to $765,600 for single-family home loans. High-cost areas are those where 115% of the median home price is greater than the floor ($331,760). In these areas, the limit equals 115% of the median home price up to the FHA ceiling ($765,600). The following table lists the 2020 FHA loan limits for low cost and high cost areas: Property Size

Low Cost Area “Floor”

High Cost Area “Ceiling”

One-Unit

$331,760

$765,600

Two-Units

$424,800

$980,325

Three-Units

$513,450

$1,184,925

Four-Units

$638,100

$1,472,550

There are 11 counties where the loan limits will decrease from the 2019 levels. The new loan limits will apply to all loans assigned FHA case numbers on or after Jan. 1, 2020. The 2020 FHA loan limits by Metropolitan Statistical Area (MSA) or county can be reviewed on FHA’s loan limits webpage. FHA also increased the loan limits for its Home Equity Conversion Mortgage (HECM), or reverse mortgage program, from $726,525 to $765,600. FHA HECM program regulations do not allow loan limits to vary by MSA or county, so this limit applies to all mortgages regardless of location.


Sens. Jeanne Shaheen (D-NH), Lisa Murkowski (R-AK), and Maggie Hassan (D-NH) introduced legislation to address an unintended consequence of the Tax Cuts and Jobs Act of 2017 that increased costs for some builders and developers. For builders and developers working in areas served by a forprofit, corporate water utility, a small tax change in the 2017 tax reform bill resulted in higher sewer and water costs. As part of the new tax law, a longstanding exemption to the tax treatment of contributions in aid of construction (CIAC) was removed to the detriment of housing affordability. Now, in areas served by a corporate, for-profit water utility, when a builder installs new water or sewer infrastructure to support additional housing — at no cost to the existing residents — that infrastructure is taxed by the federal government. In some states, affected utilities are required by the public utility commission to pass this additional tax liability back to the developer in form of a gross-up fee, in certain cases reaching as high as 40% of the cost of the infrastructure. Other state regulators have allowed the utility to add the tax increase into the rates charged to all ratepayers. Although the tax change only affects for-profit, corporate utilities — not municipal or other non-profit water utilities — when the developer is expected to cover the gross-up fee, this can add thousands of dollars to the cost of building a home. S. 2942 would restore the exemption for water and sewer CIACs so that they are no longer included in the utility’s gross income. NAHB applauds Shaheen, Murkowski and Hassan for introducing legislation to restore within Section 118 of the tax code the exemption for water and sewer. At a time when the country faces a housing affordability crisis and rising costs associated with aging infrastructure, removing the water and sewer tax exemption made no sense. It is time to fix that mistake, and NAHB urges Congress to pass S. 2942.

In a step forward to address the nation’s growing housing affordability crisis, the White House and House Democrats have agreed on a deal to advance the U.S.-Mexico-Canada Agreement (USMCA). Congress is expected to act quickly to ratify the trade pact. Trade policy affects housing costs and the USMCA has important implications for the home building industry. The U.S. residential construction and remodeling industries rely on tens of billions of dollars in building materials sourced from Mexico and Canada annually because America cannot produce enough steel, aluminum and other materials and equipment to meet the needs of the domestic housing industry. The price volatility of these imported materials and equipment are needlessly driving up housing costs and exacerbating the nation’s housing affordability woes. The USMCA is clearly a major improvement over the outdated 25-year-old NAFTA. By modernizing and strengthening free trade with our largest trading partners, the U.S. International Trade Commission predicts that the USMCA will create more than 175,000 new jobs, add about $70 billion to the economy and boost wages for American workers. “NAHB commends President Trump and House Democrats for working together in a bipartisan spirit to reach an agreement on approving the USMCA trade deal, which represents a win for the U.S. economy, a win for American jobs and a win for housing affordability,” said NAHB Chairman Greg Ugalde. “Many of the products that go into American homes come from Mexico or Canada. By moving swiftly to ratify the USMCA, Congress will help to address the nation’s housing affordability crisis.”


The NAHB International Builders’ Show® (IBS) brings together the best in the business, from industry leaders to innovative product manufacturers. And at the center of the action on the IBS 2020 show floor is IBS Live. IBS Live takes place in a theater area in the South Hall of the exhibit show floor. This educational highlight offers eyeopening presentations and conversations that cover the future of housing and the products, people and processes that disrupt the industry. Thousands of attendees will once again pack the floor of the Las Vegas Convention Center Jan. 21-23 to get to these must-see presentations: • • •

Take a Sneak Peek at the Future of Building Materials.

Learn How Chicago Is Tackling the Future of Attainable Housing through Disruptive Design.

And what about Self-Powered Homes? Evolution or Revolution?

Find out Why Housing is Long Overdue for Disruption. Hear more about The Future of Mobility & Its Impact on Real Estate.

American Home® 2020 and The New American Remodel® 2020, the two official Show Homes built exclusively for IBS. IBS Live offers 14 presentations about what’s next in housing. Be part of discussions that go far beyond the latest smart home product; industry leaders will address the tremendous market shifts in design, construction techniques, sales, products and more that are expected to take place over the next five years. Discover the momentous changes ahead and how you can propel your business forward by embracing them. And don’t forget the Best of IBS Awards & Happy Hour at the Jan. 23 closing IBS Live display. From instructional demonstrations, informative tours and dynamic discussions, there are plenty of opportunities to discover ways to build your business at the Builders’ Show. Make sure you take advantage of all there is to experience while you’re at the show. Register now at buildersshow.com to experience all that IBS 2020 has to offer.

Explore high-performance demonstrations of The New

Take advantage of the best educational opportunities available in the home building industry.

INDIVIDUAL COURSES Or you can take the individual courses that fit your needs. Courses are hosted by over 100 HBAs around the Congratulations! You’ve made the smart decision to join country and also take place at the International Builders’ Bismarck-Mandan Home Builders Association. And now, that Show® (IBS). Visit nahb.org/education to find a class near choice can make you even more brilliant! Your local you. membership automatically makes you a member of the state and the National Association of Home Builders. This WEBINARS means you have access to NAHB Education programs – the Can’t take time away from the office for a course? Let the best available in the industry. learning come to you in the form of webinars and online courses you can take in your own time. Visit nahb.org/ NAHB Education has courses for everyone, from the elearning for more information. novice to the experienced professional. Do you have a special interest or a knowledge gap you need to fill? Do you BUILDERBOOKS want to amaze clients and boost your bottom line? Check Finally, BuilderBooks.com is another valuable source for out nahb.org/education for 44 diverse courses that support education and training products. As NAHB’s official 13 professional designations representing various topic bookstore, BuilderBooks.com offers award-winning areas like sales and marketing, business management, publications, software, brochures and more, with many green building, aging-in-place, land development and more. available in both English and Spanish. Many members earn designations to differentiate The more you learn, the more you can grow your themselves from their competitors and provide their clients business strategically, effectively and profitably. added value by staying abreast of an ever-changing industry.


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PRESENTS

2020 BMHBA ANNUAL BANQUET

Carhartt & Cashmere Friday, Jan. 17 5:30 Social ∙ 6:15 Dinner

Harvest Event Center 308 W Main St, Mandan Attend an evening of fine food and drinks with fellow HBA members. All registered guests will receive a gift from the association. A short program will follow dinner.


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