January 2015 Building Buzz by Bismarck-Mandan Home Builders Association

BB BUILDING BUZZ

JANUARY 2015 President’s Letter

2015 Board President Drew Knutson’s First Remarks | page 3

City Beat

Mandan Street Improvement; Bismarck Online Permits | pages 6-7

BMHBA News

Annual Banquet | pages 9

National News

Members Save on Wireless | pages 10-13

NDAB News

2015 Will be an Exciting Year! | page 14

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BMHBA Building Buzz

January 2015

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

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

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

YTD 2014

YTD 2013

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

505/$110.71M 310/$45.57M 170/$22.56M 10/$1.47M 1/$0M 14/$41.11M 86/$.61M 41/$11.59M

644/$133.89M 412/$72.67M 203/$29.96M 9/$1.46M 5/$2.70M 15/$27.10M 92/$.889M 64/$18.81M

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

YTD 2014

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

109/$39.74M 98/$24.89M 8/$2.23M 3/$12.62M 121/$2.77M 38/$16.17M 36/$4.24M

YTD 2013

208/$83.38M 156/$44.28M 44/$9.66M 8/$29.44M 130/$2.56M 17/$9.10M 24/$8.18M

January 2015

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BMHBA Building Buzz

A Word from Our President Despite climbing a leadership ladder that guides board members from 2nd VP to 1st VP and finally to President, it’s still daunting to be at the top rung. Perhaps it’s because our past presidents have set high standards for leadership or that 2014 was such an impressive year of growth and action for our association. Regardless of the source, I’m hoping each of Drew Knutson you will help me make 2015 Board President memorable. Your board calls for membership action throughout the year. From legislative action to education and community support, your participation in issues and events makes a big impact on our industry. As I slide into the president’s seat, I’m issuing my first call to action…Attend the Annual Banquet! The Annual Banquet is one of our largest membership gatherings attracting more than 200 participants last year and generating thousands of dollars in scholarship money. Please consider sharing your time with us on Friday, Jan. 16 at the Ramkota. We’ll share a meal, swap stories, welcome three new board members and support three student scholarships at BSC through a silent auction. Register online at bmhba.com/events or call Dot and Terri at 222-2400. As you visit the events page at bmhba.com you’ll notice that the Annual Banquet is just one of many

Save the Date for February Fun Night: Feb. 12 The association is grateful for our February Fun Night host Jerome Distributing. Come out on Thursday, Feb. 12 for beer and malt samples and a board-cooked chili feed. The event runs from 5-7 p.m. at 3420 Miriam Ave. in Bismarck.

events shaping up in the first quarter. We’re teaming up with NDAB for an energy efficiency/code seminar, hosting February Fun Night at Jerome’s Distributing and encouraging the formation of teams for Bowling with the Builders. All of these events are open for registration and present excellent sponsorship opportunities. One event that isn’t published online, but is both exciting and significant is the Board Orientation and Planning Retreat on Jan. 27. NAHB’s Affiliate Services staff member Donna Oliver will lead the entire board through best practices of association leadership and strategic planning for 2015. Additionally, Donna will lead our committee chairs in a similar session. If you have ideas you’d like us to consider, please contact any of our board members or association staff. I’m excited and honored to begin a year of service as your association president. Please don’t ever hesitate to contact me throughout the year. Together we will continue to build our community through promotion of home ownership, education and legislation. - Drew Knutson

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BMHBA Building Buzz

November 2014 New Members Burleigh Co. Building/Planning/Zoning | Ray Ziegler Glasser Images | Jack Glasser

www.glasserimages.com

Advertising, Audio/Video, Branding, Web Design

Red Door Homes of Bismarck | Rory Anderson www.reddoorhomesnd.com

Home Builders (Multi-Family)

Silver Ridge Contracting | Dustin Fischer

General Contractor, Remodeling, Siding, Roofing, Windows

Venture Real Estate | James Michela and Kyle Leftwich www.venturend.com

Real Estate

January 2015

2015 Board of Directors PRESIDENT Drew Knutson Knutson Homes, Inc. Phone: (701) 258-3464

PAST PRESIDENT Vance Vetter Vance Vetter Homes Phone: (701) 751-8218

Susie Franklin Capital Credit Union Phone: (701) 255-0042

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

1ST VICE PRESIDENT Greg Zenker Ferguson Enterprises Phone: (701) 663-2446 Nathan Jones Tollberg Homes Phone: (763) 205-2037 Parker Pladson Venture Building Co. Phone: (701) 290-6734 Jeff Sattler Sattler Homes Phone: (701) 255-7628

SECRETARY/TREASURER Lynn Klein Gate City Bank Phone: (701) 355-7633 Chad Moldenhauer K & L Homes, Inc. Phone: (701) 258-4584 Shannon Reichenberg Diversity Homes Phone: (701) 220-8177 Bill Schmid Townsquare Media Phone: (701) 250-6602

Scott Bullinger

Aaron Wentz

Chris Fraser

Leanne Holzer

Susie Franklin

Roxy Praus

Apply online at www.capcu.org/fast_loans, or call 255-0042 or 1-800-735-6922 today.

BMHBA Building Buzz

January 2015

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Member Spotlight: Glasser Images Company Name: Glasser Images Contact Name: Jack Glasser Job Title: Owner and President Phone Number: 250-2190 Website: glasserimages.com and blog.glasserimages.com When was your company founded? Where and by whom? Founded by Jack Glasser in 2005 with the taking of one senior graduation portrait, Glasser Images, a local photography studio, has grown and continues to grow into the future. This is driven by Jack’s passion for photography and entrepreneurship as well as his vision for the company. What type of products/services does your company provide? Glasser Images provides Commercial Photography, Professional Headshots and Portraits, Family Pictures, Baby and Kid Sessions, High School Senior Pictures, Couple and Engagement Photos, and Wedding Photography as well as other Creative Services such as Video, Graphic Design, and Website Design and Development.

Which products/services would you say are “bestsellers”? We focus on Commercial Photography and Headshots for local, regional, and national companies as well as Wedding Photography.

What sets your company apart from the competition? Glasser Images is a professional photography studio with multiple photographers. We have the quality, professionalism, experience, reliability, and turnaround needed in the industry.

What is your company’s mission statement? The goal of Glasser Images is to provide outstanding, personalized service and create quality and creative photography that captures personality. With a fresh, new, and modern perspective to photography, Glasser Images creates and captures unique

images. Whether in need of wedding photography, senior graduation pictures, family photos, or commercial photography, Glasser Images has a simple style and approach with one common goal - great photography.

Is there anything new or interesting happening in your company or industry right now? The photography industry is always changing. From computer and camera equipment to style and techniques, there is always something new. We strive to stay on top of the every changing world of photography. How many employees does your company employ? Glasser Images has 5 full time employees, 1 part time employee, and several subcontractors for other projects. What do you enjoy most about your job? I personally love working with our clients and being able to offer career to photographers to allow them to focus on what they love doing and what they are best at: photography, creativity, and working with people. We truly have an amazing team!

Don’t Miss These Upcoming Events!

Jan. 1: Happy New Year!

Jan. 16: Annual Banquet

Jan. 8: Energy Code/Efficiency Seminar

Jan. 20-22: International Builders Show

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BMHBA Building Buzz

January 2015

City Beat Mandan Provides Street Improvement Updates According the Justin Froseth, Mandan’s planning and engineering director, 2014 was a good year for street construction in the city. “Plans came in earlier and relatively good construction weather, especially in late summer/early fall, seemed to help get things buttoned up before winter hit,” he said. The following is an update on the current status of the Street Improvement Projects: • District 161 (Diane’s) - Project is 99% done. The seal coat on 4th Avenue NE (below Coulee) and 6th Avenue NE, and some patching on 5th and 6th Avenue NE. • District 163 (Sunset Drive) - Project is substantially complete. The city conducted an inspection this summer and found some outstanding items to be addressed by the contractor in order to consider final. The contractor has been addressing those items, but a walk with the city, contractor, consulting engineer, and DOT has yet to be conducted to verify the corrections. • District 176 (McKenzie Drive SE, Genoa court SE and 34th Ave SE) - Contractor needs to adjust six curb stops in the R/W to finished grade, clean inlets, replace damaged concrete curb at west end of McKenzie Drive SE, and fill in gaps at the expansion joints in the curb and gutter. • District 177 (Meadows 6th Addition) - Contractor needs to raise the two east curb ramps at the intersection of 48th Street NW and 34th Avenue NW. • District 178 (Meadows 6th Addition) - Curb and gutter by valley gutter is not replaced yet. Planned completion spring 2015. • District 179 (Meadow Ridge 3rd Addition) - Project is complete other than verifying that all punch list items have been done. • District 181 (Meadows 7th Addition) - Work is completed. Waiting on final paperwork. • District 182 (Meadow Ridge 1st Addition) - Project is complete other than verifying that all punch list items have been done. • District 185 (Heart Ridge 2nd Addition) - Waiting on street signs and final walk through. • *District 186 (Macedonia Hills 1st Addition) Project is 90% complete. Seal coat, valve box adjustments and some grading behind curb and gutter. Street lights are complete but are waiting on MorGranSou Electric to get power to the control

cabinet. Final Completion Aug. 15th, 2015. • District 189 (Lakewood 6th Addition Lot 10B, Block 2 Replat) - Project is complete other than final walk through and paper work. • *District 190 (Keidel’s South Heart Terrace 3rd Addition) - Project is 80% complete. Surface lift of asphalt is needed on west half of project and seal coat, seeding and street lights are needed throughout the project. Substantial completion date of June 15, 2015 for surface lift of asphalt, utility adjustments, seeding, and electrical. Final completion date of Aug. 15th, 2015 for seal coat. • *District 191 (Lincoln Ridge 6th Addition) - Project is 90% complete. Seal coat and seeding remains to be done. Final completion date Aug. 15th, 2015. • *Street Improvement Project 192 (West Hills Estates 3rd Addition) - Project 95% complete. Seal coat remains to be done. Final completion date of Aug. 15th, 2015. • *District 193 (Midway 14th Addition) - Project is 90% complete. Seal coat and seeding remains to be done. Final completion date of Aug. 15th, 2015. • *District 195 (Roughriders) - Project is 90 % complete. Seal coat and final walk through remain. Final completion date of July 15th 2015. *Denotes that project started in 2014.

Dennis Kraft NMLS #766583

Natalie Eckes NMLS #766563

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3000 N 14th St Bismarck ND 58503

Mandan

614 West Main Mandan ND 58554

January 2015

BMHBA Building Buzz

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City Beat City of Bismarck Hires, Continues Work on Online Permits Bismarck Building Inspections has hired a new front desk staff person. Joanie Sanda started on Dec. 15 and is responsible for assisting customers, scheduling inspections and issuing permits. The plans examiner position was reposted and deadlined Dec. 31. This position has been posted and remains unfilled since the fall of 2013 when the previous

examiner Brady Blaskowski transitioned to interim building official. In the meantime, the City Commission approved outsourcing plans examinations to ensure timely turnaround for builders and contractors. Work continues on the online permitting and inspections system for the City of Bismarck. According the Building Official Blaskowski, they are still working to repair glitches before opening the site to consumers. He anticipates a soft launch to several builders to test in mid-January.

Mandan Proposes Design Standards for Sidewalks/Aprons The City of Mandan proposed to prepare an ordinance and design standards that will update the requirements for construction of sidewalks and driveway aprons at its Dec. 16 commission meeting. According to the Engineering and Planning Departments, certain construction requirements related to the installation of driveway aprons and sidewalks within public rights-of-way need to be updated. The proposed changes were developed after reviewing the results of the last construction season. Some items are suggested for inclusion in the City code and other items in the specifications and details adopted by resolution of the board. An increase in unqualified individuals attempting to install sidewalks and driveway aprons have prompted the City to recommend: 1. All work be performed by a contractor licensed by the state. In addition, any contractor must have proper insurance and be able to obtain a bond to ensure successful completion of the work. 2. Name stamps on all jobs. 3. A mandated, full 4-inch pour, not just the 3 Â˝ inches

of the depth of a standard 2 x 4. 4. Expansion material placed everywhere needed. 5. Framing completed before calling for an inspection. 6. Utility covers need to be upgraded prior to pouring. Additionally, the City is updating the requirements for base course, addressing excessive driveway widths, clarifying and inspecting offsets from fire hydrants and utility poles. They plan on setting specific timeframes for completing sidewalks in front of lots that have an occupied structure, and devising a formal procedure to follow if a property owner refuses to install a sidewalk. Builders can expect additional information about the sidewalk and apron policy as the ideas are streamlined. The City plans to create a handout or brochure that explains the requirements and the processes.

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BMHBA Building Buzz

January 2015

Members Turn Out at Main Events Close to 160 members celebrated the season with fellow home builder members at the association’s Annual Holiday Open House. The evening kicked off at 5 p.m. at 1603 Main Events in Bismarck. One word describes the venue – amazing! The décor definitely suited our industry with exposed beams, rough brick and original wood floors. And we can’t fail to mention the concrete bar. The association appreciates all who turned out for the event. We hope you enjoyed the culinary skills of Chef Grego DiDonna and the musical styling of Buzz Benson Members socialize at the Annual Holiday Open House on Dec. 11. and bandmates. Please share your appreciation for the event sponsors: • Platinum Sponsor—North Dakota Guaranty & Title • Gold Sponsor—Diversity Homes • Silver Sponsors—Front Street Millwork & Lumber and Knutson Homes • Bronze Sponsors—One Source Lighting and Superior Insurance Join us again at the Annual Banquet on Friday, Jan. 16 at the Ramkota. Tickets and sponsorships are available at bmhba.com/event or by calling 222-2400.

Board members compete in a gift wrapping competition. Drew Knutson won for speed and Paula Haider on best wrapped.

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January 2015

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BMHBA Building Buzz

Free Energy Code Seminar

Choose Chicken, Beef or Fish?

The North Dakota Association of Builders (NDAB) is sponsoring a free Energy Code/Efficiency Seminar on Thursday, Jan. 8 from 7:30 to 11:30 a.m. in Bismarck. Beginning on January 1, 2014, North Dakota’s State Building Code will include new energy efficiency requirements in the 2012 International Residential Code. Seminar attendees will learn: • Basic building science—heat transfer, moisture movement • Scope—residential buildings; exempted buildings; alterations, renovations, repairs; mixed use buildings • International Residential Code vs. International Energy Conservation Code • Overview—focus on envelope, ducts; information on HVAC, lighting, appliances, water heating • International Energy Conservation Code Compliance—mandatory, prescriptive, performance • Specific requirements—envelope, ceilings, walls (above and below grade, steel frame, mass), fenestrations, floors, slab • Performance alternative—trade-offs, computer software (REScheck), mandatory requirements, air • Documentation Attendees are encouraged to register through NDAB by calling 222-2401 or emailing heather@ ndbuild.com.

Registration is now open to attend the BMHBA Annual Banquet. The event is Friday, Jan. 16 at the Ramkota Hotel. Festivities begin with a social at 5 p.m. followed by dinner and a short program at 6 p.m. The Annual Banquet attracted more than 200 members last year and we anticipate similar strength in numbers this year. Help us welcome the new board members and generate funds for the BSC Scholarship through our silent auction. The association thanks the current sponsors: Cornerstone Bank, Diversity Homes, Edgewood Development Group, Ferguson Enterprises, Kirkwood Bank & Trust Co, Knutson Homes, Northwest Contracting Inc., Odden Construction and Regal Home Solutions. A limited number of sponsorships are available, many of which include tickets to attend. Register online at bmhba.com/events, email info@bmhba. com or call 222-2400.

Support Our Student Builders

Members are encouraged to donate a silent auction item for the Annual Banquet. Each year an impressive silent auction helps generate much of the $3,000 in annual scholarships the HBA provides students attending BSC for carpentry and HVAC. Email info@bmhba.com or call 2222400 if you’re interested in donating an item for the auction.

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BMHBA Building Buzz

January 2015

National News NAHB EOs and Members Now Save on Wireless The NAHB Member Advantage program now offers members exclusive discounts on wireless solutions with the nation’s best carriers including Verizon, Sprint, AT&T and T-Mobile. All NAHB Members have the ability to receive a nocost, no-obligation detailed assessment of their existing wireless telecom expenses, and be provided with a free side-by-side comparison of discounts available for their existing service, along with comparable options from other carriers, often with even greater discounts. Once a member selects an option, they will receive comprehensive management of the implementation process, and a dedicated representative to act as the

focal point for customer service and ongoing member support. To learn more, please visit eMember Benefits.com/nahb or call 866-430-NAHB (6242) to speak directly with a member specialist. All carriers require a five-line minimum for business accounts (all phones, tablets, mobile hot spots and other cellular internet connected devices count towards this minimum).

The following webinars are make available to BMHBA members through NAHB. For assistance with registration, please contact the BMHBA at 222-2400 or info@bmhba. com.

leverage your pocket-sized computer to its full potential. Learn how to become more efficient and organized with mundane tasks. Discover how a smartphone or tablet can deliver highly personalized, high-touch, follow-up messages to prospects. Worried you are addicted to your smartphone? Learn how to use it to be more connected and less distracted, resulting in more productive work time and more fulfilling personal time.

Webinar Wednesdays

Automated Reporting and Analysis with Google Analytics Wednesday, Jan. 7, 1-2 p.m. Who has two hours per week to manually review Google data? Instead, let's spend two hours this week to automate reporting for the rest of the year. This webinar session focuses on Google Analytics, but also includes Google AdWords and Google Webmaster Tools automated reporting. Presented by NAHB Education

What's 'Appening: Tech Tips and Tricks for Busy Building Professionals On the Go - Registration Opening Soon! Wednesday, March 4, 1-2 p.m. In today’s world of buzzing, beeping, texting and tweeting, your smartphone or tablet is the ultimate power tool! In this seminar, you will learn how to

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Only $25! Call 222-2400 or email info@bmhba.com to find out how.

Presented by NAHB Professional Women in Building and NAHB Business Management

The Social Society: The Nuts and Bolts of Getting Started in Social Media - Registration Opening Soon! Wednesday, March 25, 1-2 p.m. — Sales/Marketing series Social media is everywhere, it's the new Yellow Pages. If you aren't into it, and you want to be, this interactive course will walk you through the basics of setting up a Facebook business page, a Houzz account and a Twitter account. We will also discuss what to post, when to post and other free and useful tips to navigate the social media world. Presented by NAHB Building Systems Councils

January 2015

BMHBA Building Buzz

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National News Survey: Homeownership Still Seen as Enviable Goal By Peter Schroeder, TheHill.com The vast majority of Americans who do not own a home still see homeownership as a praiseworthy goal, despite the damage wrought by the subprime mortgage crisis. Ninety-one percent of renters believe homeownership is something to be proud of, according to a survey released Monday by housing giant Freddie Mac. However, just 39 percent of renters surveyed actually plan to buy a home in the next three years. The survey indicates that much of the positive impressions Americans have about homeownership may have withstood the economic downturn that slashed the values of home prices and drove many Americans into foreclosure. Despite that experience, Americans still strongly see buying a home as an enviable achievement and one that can provide a valuable asset for future generations. But at the same time, the survey also found some lingering wariness about buying a home as an investment, as 66 percent of renters surveyed like that they are immune to potential declines in home values.

The poll found that most renters may be avoiding buying a home for financial reasons. While 38 percent of homeowners say they have just enough money to get by, 45 percent of renters say the same, and another 17 percent say they live paycheck to paycheck. But it appears that younger renters are much more inclined to buy a home in the near future. Forty-seven percent of renters aged 25 to 34 said they plan to buy home in three years, and 58 percent of those between 35 and 44 years old said the same. By comparison, just 27 percent of renters aged 45 to 64 years plan to buy a home anytime soon. While 91 percent of renters say buying a home is something to be proud of, 90 percent see a home as something to be passed on to children, and another 89 percent say the ability to customize a home as they see fit as a significant perk. However, renters also rate strongly the positives that come without a mortgage. Seventy-eight percent enjoy the freedom from maintenance projects that comes with renting, and another 68 percent enjoy the flexibility renting provides when it comes to choosing a place to live.

The Internal Revenue Service issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be: • 57.5 cents per mile for business miles driven, up from 56 cents in 2014 • 23 cents per mile driven for medical or moving

purposes, down half a cent from 2014 • 14 cents per mile driven in service of charitable organizations The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for medical and moving purposes is based on the variable costs, such as gas and oil. The charitable rate is set by law.

New Standard Mileage Rates Now Available

Booth Space Slipping Away! Grab your booth space at the 2015 Home Show before they’re gone. The event is March 13-15 and will occupy the recently expanded exhibit hall at the Bismarck Events Center. Call 222-2400 or email info@bmhba.com today! Members pay just $450 for the 3-day event.

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BMHBA Building Buzz

January 2015

National News NAHB Delivers in Lackluster Congress Though the 113th Congress is destined to be the least productive legislative session in 40 years in terms of laws passed, NAHB was able to achieve considerable victories for our members. A Dec. 11 article in The Hill detailing the top 10 lobbying victories of the year cited NAHB efforts to enact flood insurance reform, noting that “Congress rolled back changes to the nation’s flood insurance program enacted only two years ago, in a victory for the National Association of Realtors, the Independent Community Bankers of America, the National Association of Counties and the National Association of Home Builders, among others. “Spurred by a spike in insurance premiums, lobbyists fought against fierce opposition from groups that said the subsidized rates from the National Flood Insurance Program could plunge the flood program that took a balance-sheet beating following Hurricane Katrina further into debt. “Lobbyists were able to permanently roll back flood insurance premium increases that Congress enacted to help keep the program afloat.” In 2014 alone, NAHB estimates the flood insurance law will result in: • $755 million more in new home construction because it is now easier for potential new home buyers to sell their existing home and trade up. • $361 million a year in additional remodeling activity because there is no longer added insurance expense for certain remodeling jobs. Other Key Laws Contribute to a Builder’s Bottom Line In addition, NAHB played an instrumental role in shepherding through Congress important legislation that helped the housing community:

Farm Bill generates $1.2 billion in additional home building and remodeling. The Farm Bill enacted into law earlier this year is a major victory for NAHB and housing. It includes an important provision championed by NAHB that will help members living and working in rural areas across the nation. The legislation allows more than 900 communities to retain their status as “rural” areas where residents have access to important rural housing programs that help lowand very-low income households buy their own homes or find suitable rental housing. This will enable millions of Americans to maintain access to critical rural housing programs. NAHB economists estimate that each of these 900-plus

communities will receive on average more than $1 million in economic activity this year in USDA loans and grants for new construction and remodeling – funding that would have been lost had the law not been passed. In 2014 alone, it will generate an additional $1.2 billion in housing investment.

Tax extenders legislation could save builders and home owners more than $2 billion in 2014 In one of their last official acts of business before adjourning, the House and Senate approved H.R. 5771, the Tax Increase Prevention Act, which will renew scores of temporary tax provisions known as “tax extenders” that expired this year. The one-year retroactive renewal, which is through 2014 and dates back to Jan. 1, includes several provisions of interest to the housing community. • Section 45L Tax Credit for Energy Efficient New Homes. Provides builders a $2,000 tax credit for exceeding energy standards by 50%. The base energy code is the 2006 International Energy Conservation Code plus supplements. Section 45L is expected to save home builders $267 million in taxes for 2014 construction activity. • Section 25C Tax Credit for Qualified Energy Efficiency Improvements. This is a credit worth up to $500 (subject to a $500 lifetime cap), with lower caps for certain products like windows, for consumers to install qualified energy efficient upgrades. Remodelers often leverage 25C tax credits when working with clients. Section 25C is expected to save home owners who remodel $832 million in taxes for 2014 improvements. • Section 163 Deduction for Private Mortgage Insurance. Allows taxpayers, subject to an income cap, to deduct premiums paid for private mortgage insurance. The deduction for PMI is expected to save home owners $919 million for tax year 2014. See the full list of housing tax extenders. Military housing can certify to the ICC 700 National Green Building Standard (NGBS) NAHB secured legislative language approved by Congress to authorize the use of the NGBS for residential construction. Project managers now have more choices when choosing green certification for new residential construction or remodeling projects, and the voluntary NGBS certification program has yet another official stamp of approval, lending more validity to state and local HBA efforts to fight green mandates.

January 2015

BMHBA Building Buzz

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National News NAHB Delivers in Lackluster Congress (Continued) Workforce Act Funds Training for Careers in Home Building President Obama in July signed into law H.R. 803, the Workforce Innovation and Opportunity Act. NAHB championed this bill because it will help alleviate labor shortages in the housing industry by providing investment and resources to train workers for careers in home building and other industries. In addition, the law reauthorizes the Job Corps and Youthbuild programs as federal programs operated through the U.S. Department of Labor. Water Resource Development Act will Improve Levees The President in June signed into law the Water Resource

Development Act. NAHB strongly supported this measure because it makes much-needed investments in our country’s underperforming levees, opening the door to new building opportunities. This measure provides funding to enhance long-delayed flood control projects, ultimately protecting home owners in flood-prone areas. This will enable NAHB members to build homes in areas protected by better quality flood control systems. Housing markets that stand to benefit from authorization include Sacramento, Calif.; Topeka, Kan.; Fargo, N.D.; and Cedar Rapids, Iowa.

Fannie Mae Announces 97 Percent LTV Option Fannie Mae (FNMA/OTC) announced an option for qualified first-time homebuyers that will allow for a down payment as low as three percent. Building upon Fannie Mae’s successful lower down payment program offered through state Housing Finance Agencies, the 97 percent loan-to-value ratio (LTV) option will expand access to credit for qualified first-time homebuyers that may not have the resources for a larger down payment. These loans will meet Fannie Mae’s usual eligibility requirements, including underwriting, income documentation and risk management standards. These loans will require private mortgage insurance or other risk sharing, as is required on purchase loans acquired by the company with greater than 80 percent LTV. “Our goal is to help additional qualified borrowers gain access to mortgages,” said Andrew Bon Salle, Fannie Mae Executive Vice President for Single Family Underwriting, Pricing and Capital Markets. “This option alone will not solve all the challenges around access to credit. Our new 97 percent LTV offering is simply one way we are working to remove barriers for creditworthy borrowers to get a mortgage. We are confident that these loans can be good business for lenders, safe and sound for Fannie Mae and an affordable, responsible option for qualified borrowers.” With today’s announcement, homebuyers can purchase a home under Fannie Mae’s standard offering or its MyCommunityMortgage® product with a three percent down payment if at least one co-borrower is a first-time buyer. In addition, eligible homeowners who wish to refinance their Fannie Mae-owned mortgage but do not qualify under the Home Affordable Refinance Program

(HARP) can refinance their loan up to the 97 percent LTV level under a limited cash-out option. Lenders must use Fannie Mae’s Desktop Underwriter® tool when evaluating mortgage applications for this product. Today’s announcement can be found here. Fannie Mae has implemented prudent risk management practices to ensure that loans the company acquires are appropriately underwritten, including mortgages with lower down payments. These include essentially eliminating risk-layering on purchase money loans, requiring income documentation to avoid “low-doc” or “no-doc” lending, and requiring income verification. As noted, private capital will be in the first loss position. Mortgage insurers and other risk sharing partners will have to conclude that these loans are prudent to make in order for these loans to be originated and delivered to Fannie Mae in the secondary market. Fannie Mae has also worked to provide lenders with greater clarity on what circumstances would result in a loan repurchase request. Some lenders have said that uncertainty around these requests has led to them curtailing mortgage availability. This new clarity is intended to help lenders make mortgages to more creditworthy borrowers. In addition, Fannie Mae is making new tools available to help lenders better evaluate risk on loans. For example, early in 2015 the company will offer Collateral Underwriter®, which gives lenders access to the same appraisal review tool that Fannie Mae uses. Collateral Underwriter will be offered at no additional cost to Fannie Mae’s customers.

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BMHBA Building Buzz

NDAB NEWS

Volume XXII, Issue 1

Monthly News from the North Dakota Association of Builders

2015 Will Be an Exciting Year! Hello and Happy New Year to everyone! I am so excited to serve as your NDAB President for 2015. First a few things about me. I am the heating department manager at Northern Plumbing Supply LeRoy Kurtyka NDAB President where I have been employed since 1977. I have been involved with the Home Builders Association since 1990. I am married with 2 adult children and 4 grandchildren. In my spare time I enjoy UND “Sioux” sporting events, cross country skiing, and being a grandpa. January will be a busy month for us as we kick off the year with Energy Code Training Classes all across the state. Due to a partnership and grant through the North Dakota Department of Commerce, we were able to bring a trainer to all six Local Association communities to offer this half day seminar FREE to all Members. The classes ran January 5th-9th and we thank all those who participated. An upcoming opportunity is for those Members attending the International Builders Show in Las Vegas this month. We are hosting our annual North Dakota Reception at the Westgate Las Vegas Resort & Casino. It’s free for NDAB Members and North Dakota residents to attend and we expect more than 200 of you again! It will definitely be a fun get together. Another way our Members can participate in January is legislatively. Session has begun and we value our Members input on issues and bills that will be affecting our industry. Kim, along with our Board and the NDAB Government Affairs Committee, will be tracking bills and reporting outcomes throughout the next several months. Be sure to communicate with us your areas of concern and let us know if we can help facilitate any Capitol visits. I think we have a great year ahead for our organization and I hope that we can continue to bring you great value for your Membership. LeRoy

January 2015

Happy New Year! As we ring in the New Year NDAB is also excited to welcome new Board Members and a new website! Please check out www.NDBUILD.com and a special thanks goes out to Brad Bombardiere and Emily Bombardiere with Realityco in working so patiently with us in redesigning us our new interactive website. We hope that all of Kim Schneider NDAB Executive Officer you find it easy to navigate, appealing to look at and full of valuable information! In 2014 we started to roll out an e-newsletter and if you have any interest in being a guest author, we welcome article ideas and trade tips. As shared in last month’s newsletter, on November 14 the NDAB Board of Directors and special guests gathered in Grand Forks to toast our successful past year and celebrate the future year ahead of us. We are thrilled to introduce and welcome everyone to our 2015 NDAB President, LeRoy Kurtyka. I am also honored to welcome our newest Board Members: Incoming Board Members: Dickinson Area BA: Lance Kilwein Forx Builders Assoc: Bill Knipe HBA of Fargo-Moorhead: John Koerselman Minot Assoc. of Builders: Phil Risbrudt Williston Area BA: Jim Rasche Williston Area BA: David Nordenstrom Bismarck-Mandan HBA: Greg Zenker

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We truly value all of our Board Members and the time and dedication they put into serving on the board. Thank You! January is also the month to renew your sponsorships or sign up for one! 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. Starting on January 6 if you need me, you can find me at the ND Capitol. As a registered lobbyist for NDAB I will be monitoring bills and working closely with the Government Affairs Committee. Please watch the newsletter and e-newsletter for updates and calls to action. As the experts in the field, your voice matters most and I will be keeping you updated on important legislation. Cheers to a New Year, I look forward to an exciting year ahead! 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 1720 Burnt Boat Drive, Suite 207, Bismarck, ND 58503-0801 701/222-2401 or 800/326-4746 www.ndbuild.com

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BMHBA Building Buzz

January 2015

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

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bmhba.com

The BMHBA hosted is General Membership Meeting & Board Elections event on Nov. 25. Teddy Roosevelt was the keynote speaker providing insight into his building and association experiences and inspiring all. Three new board members were elected on Nov. 25 – Parker Pladson of Venture Building Company, Jeff Sattler of Sattler Homes and Susie Franklin of Capital Credit Union. More than 150 members turned out for the Holiday Open House hosted at 1603 Main Events on Dec. 16. Live music and appetizers prepared by Chef Grego DiDonna and a board wrapping contests were three highlights. The association has been working with the State Department of Heath as it reapplies for its EPA discharge permit.

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

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Dickinson Area Builders Christmas Party is at Lady J’s Club & Catering this year. Gingerbread House auction proceeds going to Domestic Violence. We are planning for the Residential Energy Code Training on Tuesday, January 6. The training session will be held at Butler Machinery conference room. Home Show planning is moving forward.

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

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Fargo’s Mayor, Dennis Walaker passed away in early December. Mayor Walaker was a vocal advoacate for affordable housing, a strong supporter of the building and the region’s biggest cheerleader for permanent flood protection. A special election at an undetermined date will be held this spring, until then Deputy Mayor Tim Mahoney will serve as Interim Mayor. The New Year Celebration will be held at the Radisson on Fargo on the evening of January 29. Members and city officials and leaders will be invited to hear updates from the four area mayors and mingle with building industry leaders. The evening’s events will also feature the installation of the HBA of F-M’s 2015 board of directors. Continuing education season starts with electrical contractor continuing ed Jan. 9, Minnesota building contractor Jan. 1 and Minnesota plumbing Jan. 30. The HBA will also host a scaffolding safety training

www.ndbuild.com

Jim Bisson of Keith’s Lock & Key hosted a great December Builders After Hours. The Membership Committee members each brought a dish to share. There was lots of food, beverages and fun had by those that attended. Keith’s Lock & Key was also celebrating their 40th year in business.

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The Installation of Officers January General Membership Meeting will be held January 27th at the Grand Forks Country Club.

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Our annual Contractor’s Education Day is scheduled for February 19th at Muddy Rivers. This is an all-day event with the classes approved for MN continuing education credits.

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

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session on Jan. 30. The HBA of F-M is gearing up for The Red River Valley Home & Garden Show held Feb.28-29, and Mar. 1 at the Fargodome. We are excited to feature Kimberly Lacy from Curb Appeal: The Block as our featured speaker. The Fargo-Moorhead area, like the rest of the state is suffering from a skilled-labor crisis that was further burdened when Minnesota Community and Technical College-Moorhead (MState) announced that they would be cutting their carpentry program from a 2-year to a 1-year program. HBA staff and leaders are working together with representatives from MState to combat the issue both short term and long term; addressing the short term needs of the school for enrollment to keep the program going and the long terms needs for the school and industry to address the crisis.

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

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Member Appreciation Holiday Social was well attended and many, many items were donated to assist the Men’s Winter Refuge home. Thanks to all who donated to this worthy cause. The Minot Association of Builders wishes all NDAB members a very Happy New Year! Let’s make 2015 even better than last year for our associations. Under LeRoy’s leadership we know that will happen. Minot will hold the Energy Code class January 8th from 2:00 to 6:00 at the Grand Hotel. Registration forms have been sent out to all members.

North Dakota Association of Builders

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

Thank you to the all of the NDAB 2014 Partners who will be featured as IBS ND State Reception Sponsors in Las Vegas this month! We truly appreciate your support!

Gold - Montana Dakota Utilities Co. Silver - Bismarck-Mandan HBA, Dawson Ins./State Auto Ins., HBA of Fargo-Moorhead, Miller Insulation Co., Inc., Northern Plumbing Supply Bronze - Bank of North Dakota, Bell State Bank & Trust, Forx Builders Assoc., Minot Assoc. of Builders, ND Guaranty & Title Co., ND Housing Finance Agency, ProBuild, RDO Equipment Co., Williston Area Builders Assoc, We also want to recognize our 2014 ND Professional Builders. Thank you for continuing to learn and seek out ways to stay current in your industry! The first educational opportunity for 2015 is Energy Code Training taking place January 5th 8th in each Local Association community. We hope to see many of you take advantage of this FREE training for Members! 2014 Professional Builders Eric Berg, Fargo Charles Bon, Robinson Michael Bullinger, Fargo Don Dabbert, Fargo Jason Eid, Fargo Aaron Greterman, Fargo John Gunkelman, Fargo Todd Halle, Harwood John Hough, Moorhead Robert Kockmann, Fargo Greg Krueger, Fargo Tyrone Leslie, Fargo Dan Lindquist, Fargo David Nordstrom, Williston Gary Orth, Fargo Tom Spaeth, Fargo Mark Spriggs, Moorhead Mike Workman, Fargo Charles Zach, Wahpeton 

January 2015

PRSRT STD U.S. Postage

PAID Permit #72 Bismarck, ND 58501

2600 Gateway Avenue Suite 1 Bismarck, ND 58503