July 2019 Building Buzz by Bismarck-Mandan Home Builders Association

BISMARCK-MANDAN HOME BUILDERS ASSOCIATION JULY 2019 || WWW.BMHBA.COM

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

PROFESSIONALS BUILDING OUR COMMUNITY THROUGH PROMOTION OF SINCE 1958. PRESIDENT Northern Plains Plumbing, Heating & Air 701-222-2155 greg@northernplains.net

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

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 www.twitter.com/bmhba www.houzz.com/pro/bmhba

Choice Bank 701-258-3300 s.franklin@bankwithchoice.com

Verity Homes of Bismarck 701-663-4117 rory@verityhomes.com

K & L Homes 701-258-4584 cmoldenhauer@midconetwork.com

2ND VICE PRESIDENT Aspire Homes 701-426-8583 greg@daretoaspire.com

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

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

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

PAST PRESIDENT Gate City Bank 701-355-7633 lynnklein@gatecity.bank

BNC National Bank 701-250-3050 mmenge@bncbank.com

Triton Homes 701-223-3030 jamie.schmidt@investcore.com

Dot Frank

Simone Marchus

Elysha Head

ENERGY TRANSFER DONATES

HOMEOWNERSHIP PROGRAM ELIGIBILITY

RENT CONTROL LEGISLATION HEATS UP

UNFILLED CONSTRUCTION JOBS

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 July 31st, 2019. Steve Austin

Brian Dauenhauer

Rachelle Johnson

Scott Bina

Dennis Kraft

Nancy Deichert

Kristin Oban

Lynn Klein

Kurt Steiner

Brandon Wistisen

John Jessen

Kristin Eisenzimmer

Tom Haider

Todd Brady

Cindy Klym

Kris Heidelberger

Randy Tank

Teddy Bossert

Marc Taylor

John Nelson

Beth Dinneen

Susie Franklin

Dave Prindiville

Jamie Stephens

Steve Delap

Stacy DuToit

Chad Dietrich

Mike Emmel

Josh Kuntz

Curtis Peterson

Quinn Eggert

J.D. Dolezal

Nikki Pokrzywinski

Jon Zabolotny

Doug Doerr

Kevin Fischer

Gerry Rudnick

Help us welcome the newest members of the Bismarck-Mandan Home Builders Association!

Carry Otterness

Tim Davenport

Randy Selland

2019 Hello BMHBA members,

July is here and it looks to be bringing with it some hot temperatures. It is crazy that we are already halfway through the year. We have a staff change at the BMHBA; Tracy DeForest is longer with us and Simone Marchus has joined the association as the member benefits and events coordinator. If you run into Tracy, which may happen sooner than you think because she joined the ranks at the City of Bismarck, thank her for her years spent with the HBA. Also feel free to stop into the office and introduce yourself to Simone. Thank you to everyone who came out for the builders social hosted at Dialectic Brewing Company. The food catered by Das Mountain was delicious and craft beers were excellent. It is always nice to see and have a few drinks with fellow builders in the association. I look forward to seeing more of you at the next event. We had the NDAB board meeting on June 26-27 in Dickinson. Thank you to the Bismarck members who serve on the state board - Vance Vetter, Rory Anderson and Eric Brenden. The BMHBA appreciates the hours that you put Regards,

2019 PRESIDENT :: BMHBA

in at a state level to ensure our unique needs are met and that the state and national delegates know who to turn to for housing data. Although it seems like fall is far off, I encourage everybody to either consider a seat on the BMHBA Board or think of somebody to nominate for a board position. Board elections are hosted at the Fall Mixer, which is Oct. 28 at the Ramada this year. If you have any questions about running for a board position, just contact the office and they can help answer any questions. As I speak of fall, the Fall Parade of Homes is scheduled for Sept. 26-29. You can expect parade contracts mailing out in early August.

Make sure to sign up for these upcoming events: • PAC Golf Tournament, July 11 at Prairie West Golf Course • Home Builders & Hops (A Builder-Exclusive Event) • Annual Sporting Clay Shoot, Aug. 1 at Capital City Sporting Clays

MONTH

BISMARCK PERMITS

YEAR 2015 2016 2017 2018 2019

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

MANDAN PERMITS

LINCOLN PERMITS

2015 2016 2017 2018 2019

TOTAL

297 286 270

169

YTD TOTAL

107

110

BISMARCK ETA

Data not collected for the ETA in 2015 and 2016

SINGLE FAMILY

132 123

114

116

-19% -47%

55%

Total

-4%

-6%

-57%

-40%

-59%

BISMARCK SINGLE FAMILY DWELLING

STONESHIRE BUILDERS

INVESTCORE

J. E. PROPERTIES

DIVERSITY HOMES

4608 MARSH HAWK DR

4002 MERIDIAN DR

EDDY MITZEL HOMES

4629 GREY HAWK LN

J & D CONSTRUCTION

3824 NEBRASKA DR

DIVERSITY HOMES RED DEER

2912 POWDER RIDGE DR 5200 COBALT DR

JOE VETTER CONSTRUCTION 3936 CLAIRMONT RD INVESTCORE

3515 MERIDIAN DR

INVESTCORE

3517 MERIDIAN DR

INVESTCORE

3527 MERIDIAN DR

INVESTCORE

3525 MERIDIAN DR

J. E. PROPERTIES

531 NELSON PL

BOULDER HOMES

3712 SILVER BLVD

BOULDER HOMES

3802 SILVER BLVD

LEVI BERGER

1712 RIVERWOOD DR

KNUTSON HOMES

5346 MICA DR

VETTER HOMES

1300 ROUND TOP RD

CALIBRE HOMES

604 BROWNING AVE

EDDY MITZEL HOMES

618 FLINT DR

2015 2016 2017 2018 2019

YTD Total

-37%

BURLEIGH/MORTON

D & B HOMES

-38% -12% 59%

-48%

-74%

-11%

-7%

-79%

-40% -8%

-24%

-71%

-7%

5353 MICA DR

3812 DEL RIO DR 807 CALVERT DR

PRAIRIE AIRE HOMES K & L HOMES

3913 HERD PL

1002 RESERVE LN

JOE VETTER CONSTRUCTION 4614 MARSH HAWK DR K & L HOMES

1110 COMMUNITY LOOP

K & L HOMES

1126 COMMUNITY LOOP

VERITY HOMES

313 ARABIAN AVE

JOE SNUSTAD

6108 CAREFREE CIR

K & L HOMES

8105 NE 27TH ST

ZACHARY WEIS

7917 NICKLAUS DR

MARK FLECK CONSTRUCTION 2720 WILDERNESS COVE RD

BURLEIGH COUNTY SINGLE FAMILY DWELLING E3 HOMES

14899 PARKER RANCH RD

E3 HOMES

14455 PANIOLO WY

MARLYS WILLIAMS

15699 NE 26TH ST

APEX BUILDERS

14663 PANIOLO WY

-18% -29% 50%

-9%

-4% -36% 20% -51%

MANDAN SINGLE FAMILY DWELLING VERITY HOMES

3805 AMITY CIRCLE SE

VERITY HOMES CAM GOEBEL

3809 AMITY CIRCLE SE 2711 6TH AVE N

J E PROPERTIES

3606 GALE CIRCLE SE

J E PROPERTIES

3602 GALE CIRCLE SE

J E PROPERTIES

3825 AMARI LOOP NW

DIVERSITY HOMES

4618 CROWN POINT RD NW

JOHN & MARY SANDERSON 804 LINCOLN COURT SE DIVERSITY HOMES

1512 RIDGE DR SE

VERITY HOMES

3618 AMITY CIRCLE SE

MICHAEL FISCHER

602 2ND ST NE

MORTON COUNTY SINGLE FAMILY DWELLING ASPIRE HOMES

2498 LABRADOR DR

JUSTIN HOERNER

3225 RIVER PLACE DR N

ARTISIT HOMES LLC

3243 JAMES DR N

CHAD ZACHMEIER

3309 HENLEY PL N

ANYLEAKS INC.

2483 LABRADOR DR

NEVADA SCHWARTZ

3035 LYONS RD

North Dakota Housing Finance Agency will offer a Conquering Compliance training course featuring Gary Kirkman of the E&A Team at the Quality Inn in Bismarck, ND, on Oct. 15-17, 2019. E&A Team’s training series takes an in-depth look at compliance in multifamily housing based on your project’s funding source. The course includes engaging and interactive sessions utilizing case studies, verification examples, knowledge check exercises and games to ensure you walk away with a thorough understanding of not only how to maintain project compliance, but why it is so important to do so. Attendees will receive a durable and comprehensive course manual that will serve as a valuable resource guide long after the course ends. At the conclusion of the course, you have the option to take an exam to earn the Housing Credit Certified Professional designation. Look for additional details about the Conquering Compliance training when registration opens in August. Announcements will also be made in our agency’s e-newsletter and on NDHFA’s Facebook and LinkedIn accounts. Direct questions regarding the training to Jennifer Henderson, NDHFA’s planning and housing development division director, at (800) 292-8621, (800) 366-6888 (TTY) or email hfainfo@nd.gov.

The Biggert-Waters Flood Insurance Reform Act amended federal legislation requiring insured depository institutions to accept private insurance. The final rule takes effect July 1, 2019; NDHFA will align its requirements with the Act. Effective for loan reservations on or after June 10, 2019, NDHFA has removed the requirement that PMI insured loans meet a maximum exposure of 72 percent. The change aligns the agency to the standard coverage options from PMI companies. Refer to Lender Update No: 19-04 online at https:// bit.ly/2IdLtyc for more details.

For more than 30 years, I have been blessed to work with compassionate and driven individuals and communities that care about housing. I’ve learned that when people have a home they can come to every night, they have the foundation to provide for their family, to live independently, and to be able to enjoy each phase we all experience as we grow older. While agency, state and federal programs have evolved over time, NDHFA’s mission to create affordable housing has always been the driving force throughout my tenure as executive director. I must give credit to outstanding advisory board members and the Industrial Commission for believing in the agency’s mission and trusting the decisions made by our staff. While I will miss the people that I have worked with over the past decades, I’m truly excited to retire. Spending more time with my grandchildren, children, parents and friends in addition to being in my garden and volunteering will fill my days. I also know the agency will continue to thrive with the experience and dedication of more than 40 talented staff. As I look back on my career, I hope that I, with the support of the full NDHFA team, was able to make a positive impact on people’s lives creating more than housing, but a place to call home. Reprinted from NDHFA June 2019 eNews

At a news conference on June 11, Dallas-based Energy Transfer committed to a $3 million contribution to the City of Mandan to help fund improvements at the Morton Mandan Public Library and Main Street parks that function as community gathering spaces. The $3 million donation over two years will assist with a library refresh and enhancements to the adjacent Dykshoorn and Heritage Parks. Tentative plans include construction of a new home for the bookmobile near the library. The building may also accommodate portable equipment used for community events. Other project components may include a new library atrium, additional public restrooms, window replacements and masonry tuck-pointing. Possible park enhancements include a ticket booth and permanent decorative fence for the Main Street side of Dykshoorn Park and a pavilion in Heritage Park to provide shelter for activities. Project scope and details will be determined once architectural services are secured. “We are very honored to receive this donation from Energy Transfer, and for their interest in helping us to continue to enhance our quality of life here in Mandan,” said Mayor Tim Helbling. “Mandan is a Main Street community and this donation will go a long way in making our downtown a more attractive and vibrant place.” “This contribution is part of our commitment to be a valued business partner in North Dakota,” said Chris Curia, Executive Vice President and Chief Human Resources Officer of Dallas-based Energy Transfer. “We are grateful for the support we received from the people of Mandan throughout the construction of the Dakota Access pipeline, and we wanted to find a way to benefit residents of all ages throughout the county.” The donation will help create a more inviting library and help make the parks more useable throughout the year for activities such as farmers markets, concerts and events. Morton County residents and others currently visited the library building 106,237 times in 2018 to check out materials, participate in programs, use computers or meeting spaces, and receive other services. The bookmobile saw another 10,644 visits on its routes throughout the county. Mandan’s Dykshoorn and Heritage parks are the prime location for many community festivals including Buggies-n-Blues, Art in the Park, and Oktoberfest plus weeknight summer concerts. Community leaders will seek other donations for any additional costs associated with the projects. Energy Transfer is the developer of the Dakota Access Pipeline. The company also donated $10,000 for the renovation of the Mandan Veterans Memorial Ballpark. Across the state of North Dakota, the company has donated more than $5.2 million over the past three years.

The Bismarck-Mandan Metropolitan Planning Organization (MPO) is in the process of completing ‘Arrive 2045’, a planning effort that identifies transportation needs in the Capital Metro area through 2045. The MPO routinely updates this long-range plan so that area transportation planning stays current with the needs of our growing and changing community. In the past, the MPO has separated out transportation needs into short-, mid-, and long-term time-frames. Arrive 2045 will refine this process by specifying the order of construction for short-term projects. Project ideas spanning the life of the plan, between 2020 and 2045, are being identified with the help of local citizens and technical staff. The final three lists will be selected based on public input, cost, projected federal funding, and benefit to the overall system (i.e. reducing congestion, improving safety, decreased travel time). However, having a list of 5-8 dedicated projects will allow local municipalities to better plan for near-term construction and local funding requirements. It will also allow the building and development communities to know how the transportation network and land development can grow alongside each other. The building and development communities and area residents are encouraged to continue their involvement in Arrive 2045 by attending the second Public Input meetings on July 9 and 10. Check Arrive2045.com for location and time details.

The Bismarck-Mandan Metropolitan Planning Organization is in the process of updating its Metropolitan Transportation Plan, called Arrive 2045, which will establish a long-range vision and strategy to shape the region’s transportation systems. Last fall, the Futures Summits meetings gathered input and guidance on system needs. Now, the public again has the chance to guide the development of Arrive 2045 at the second round of public meetings. The second round of public meetings are developed to gather input and guidance on project level prioritization and system investments in the BismarckMandan-Lincoln metro area. These meetings will be an open house and the public will have multiple opportunities to engage with the project team to support project prioritization efforts. July 10th, 2019 || 6 to 8 p.m. Mandan City Hall 205 2nd Avenue NW Mandan, ND

Arrive 2045 focuses on the following key outcomes:

• • •

•

Establish needs for transportation investments covering multiple modes of travel - including roads, public transit, bicycle, pedestrian, and freight; Directly impact how transportation projects are prioritized; Guide decision making of future transportation funding; Influence the physical environment, policies, and planning for the transportation network in the BismarckMandan MPO area.

All meetings are open to the public and will provide residents an opportunity to discuss and share ideas and feedback on issues throughout the BismarckMandan MPO area. More information is available at www.arrive2045.com.

This notice is to all property owners, residents, and caretakers of property within the city limits of Mandan. All noxious weeds and/or overgrown vegetation must be cut or sprayed by July 1, August 1, September 1, and October 1 and must be maintained under the 6” maximum height. Any failure to comply with this notification will result in the property being cut and/or sprayed by the city with the cost being added to your special assessments. If you are planning to spray your property instead of cutting it, you must notify the code enforcement officer at (701) 667-3264 or your property will be cut with the cost being added to your special assessments.

In 2018 members saved over $20 million using NAHB Member Savings programs. Savings in these programs and others help cover the cost of your membership dues and benefits your local association. Don't miss these and other great programs that can save you and your business money:

UPS:: We took the guesswork out, and put the easy in. It's now easier than ever for you and your members to save on domestic and international shipments with your new and improved UPS flat rate pricing.

FCA:: With the FCA US LLC vehicle allowance, members, their employees and household family members, are eligible for a $500 cash allowance toward the purchase or lease of most new Chrysler, Dodge, JeepÂŽ, Ram or FIATÂŽ vehicles. This extra member benefit is stackable with most national and local offers. See dealer for details and exclusions.

TICKET MONSTER:: As the exclusive corporate discount provider for the Walt Disney World Resort, Ticket Monster is proud to offer great savings to NAHB Members on all your favorite Disney attractions! Save big with special offers on Park Hopper passes to visit all four theme parks: Magic Kingdom, Epcot, Hollywood Studios and Disney's Animal Kingdom, as well as Typhoon Lagoon and Blizzard Beach.

LOWE'S PROSERVICES:: Save 5% every day* when using either your Lowe's AccountReceivable (LAR) or Lowe's Business Account (LBA) and register toreceive an additional 2% statement credit** through 12/31/2019.

Visit www.nahb.org/savings to see more member only discounts!

The North Dakota Industrial Commission has approved new eligibility limits for programs that assist state residents, typically first-time buyers, with a home purchase. Administered by North Dakota Housing Finance Agency (NDHFA), the programs provide low-cost financing, and down payment and closing cost assistance. “North Dakota Housing Finance Agency has helped more than 45,000 households achieve homeownership,” said members of the commission in a joint statement. “The support provided has benefitted not only the individuals and families who purchased homes, but also the communities in which they established themselves.” The Industrial Commission, consisting of Gov. Doug Burgum as chairman, Agriculture Commissioner Doug Goehring and Attorney General Wayne Stenehjem, oversees the agency. Through NDHFA’s FirstHome™ program, low- to moderateincome buyers who have not owned a home in the last three years, can receive the purchase assistance. The agency’s HomeAccess program provides special needs households who may have previously owned a home with the same support. The commission approved maximum income limits for the programs of $84,500 to $115,690. The acquisition cost limits were set at $283,348 to $305,330 for a single-family home and approved higher limits for existing two- to four-unit properties. The program limits vary depending on household size and the county in which a financed home is located. The U.S. Department of Housing and Urban Development and the Internal Revenue Service regulate the income and acquisition cost limits respectively. “Last year was record-breaking for our homeownership division,” said Jolene Kline, NDHFA executive director. “With the support of our private-sector partners, NDHFA provided 1,798 first-time homebuyers with more than $300 million in purchase assistance.” In 2018, the average FirstHome loan purchased by NDHFA was just under $166,000, and the average borrower’s household income was $58,600. Private-sector lenders originate the loans on NDHFA’s behalf and sell them to the agency when they are closed. Parties interested in learning more about the agency’s programs will find information online at www.ndhfa.org or by contacting a participating lender.

The U.S. Census Bureau released new population estimates in May. Mandan and Morton County are among areas in North Dakota that are gaining. As of July 1, 2018, Mandan’s population is estimated at 22,519. The bureau adjusted all estimates going back to 2011. The new estimate indicates 1% growth from 2017 to 2018 and a 23% increase since 2010. Morton County’s 2018 population is estimated at 31,095, up less than a percentage point from 2017. Memorial Highway Meeting July 30 A public information meeting on Memorial Highway reconstruction is set for Tuesday, July 30, from 4-6 p.m. at Midway Lanes, 3327 Memorial Highway. The project team will meet with Memorial Highway business owners prior to the start of the public meeting from 1:30-3:30 p.m. Mandan Moves on Main Street Reconfiguration On June 4, the Mandan City Commission approved a plan for improvements to Main Street to occur next year. The core downtown area from 10th Ave NW to Collins Ave will be reallocated from four- to three-lanes, with parking added to the south side of the street. A traffic study showed that the 85th percentile of traffic is going 10 mph over the speed limit. The goal of the project is to improve safety. Mayor Tim Helbling noted, “I’ve walked on Main Street a lot recently and it’s not a great feeling when you’re on the sidewalk and see a truck speeding down the road just feet away from you. We need to do something to slow the traffic down and make this part of town more walkable.” The project also includes: • Curb bulb-outs on the north side of Main Street and streetscape improvements between Fourth Ave NW and Collins Ave; • Including stamped/colored concrete, street trees, trash receptacles, and pedestrian sidewalk lighting; and; • Pedestrian crossings with a flashing beacon will be added at First and Fourth Ave NW. Other Main Street improvements. Main Street concrete repair will also be completed from the Heart River Bridge east to Twin City Drive and traffic signals will be replaced from 10th Ave NW to 6th Ave NE where warranted and will include updated video detection equipment and interconnection technology for better synchronization. Differences between Mandan’s Main Street and Bismarck’s Main Avenue. There was discussion during the meeting about how Mandan’s Main Street project differs from Bismarck’s Main Avenue project. Differences discussed included that striping confusion should be minimized since traffic lanes will match up to the current pavement joint lines; Mandan will only have three traffic signals in the core downtown area, whereas Bismarck has traffic signals at almost every intersection in their project area as well as train crossings that add to the situation; and Bismarck averages a little over 3,000 more cars per day in its downtown project area compared to Mandan’s core downtown project area. Project cost. The total cost of all project components, including the traffic signal replacement and concrete repair, is estimated just under $3 million, but is mostly funded through federal and state grants with a 10% local share coming in around $324,000. It’s important to note, not all road construction projects are eligible for state and federal aid. This particular set of projects is eligible to receive grant monies because it is on a state highway, meets federal and state requirements, and is located in the core downtown area of the city. More information. The project is set to be bid in October 2019 with construction in 2020. The North Dakota Department of Transportation has created a webpage dedicated to the 2020 project linked at www.cityofmandan.com/news.

According to the National Association of Home Builders (NAHB), People who work in construction are significantly more likely to become addicted to opioids, like prescription painkillers, than other workers in the general population and are six times more likely to die as a result of overdose.

Another NDAB Summer Event in the books! I would like to thank everyone that came out to Dickinson for our Summer Meetings and the 2019 Summer Event which was held at Fluffy Fields Vineyard & Winery located in North East Dickinson.

I would also like to congratulate Nate Applegren and his Executive Officer Stacy Anderson on winning Boss of the Toss at our 3rd Annual Corn-hole Tournament. ND Association of Builders hosts three signature events a year and they are an excellent time to recruit new members, get existing members more involved and introduce them to various staff, members and sponsors from around the state. With Membership Recruitment and Retention being one of our highest priorities it is important to show these new and potentially new members the value of a 3-in-1 Membership.

NDAB was lucky enough to have some special guest come and present at our Board of Directors Meeting June 27th.

•Wayde Sick from the ND Department of Career and

Technical Education. Wayde gave a great presentation available here. He asked that anyone willing to participate in a short survey found here. •Jim Silrum the Deputy Secretary of State spoke to the Board and guests about the changes that will occur with Measure 1 and how it will effect organizations like NDAB. •Reagan Van Cleave the Regional Field Rep from NAHB. Reagan gave an update on Leg Con as well as upcoming Membership drives and Retention programs. Looking ahead to the coming months let us focus on membership and retention. Matt Milroy will be speaking at our November Annual Meeting in Grand Forks. He will be presenting Membership Back to Basics a good overview on recruitment and retention fundamentals. There will be time for discussion including exchanging ideas on things that have worked in your local area as well as ideas that Matt has picked up during his time as Regional Field Rep. Until next time, Bob Horab

In addition to the health and well-being of the employee, the impact on a business can be significant and includes loss of productivity, healthcare expenses, absenteeism, turnover and much more.

•On average, 130 Americans die every day as a result of an opioid overdose.

•There are close to 200 fatal and non-fatal opioid overdoses in the U.S. every day. That’s eight overdoses per hour, including at least two from workers in the home building industry.

•More than 700,000 people died as a result of a drug overdose between 1999 and 2017.

•Around 68% of the more than 70,200 drug overdose deaths in 2017 involved an opioid. NAHB is taking an innovative approach to address opioid use and misuse, viewing the problem holistically and creating solutions and educational resources that address intervention points across the spectrum of prevention, treatment, recovery and return-to-work.

The materials are available to NAHB members and non-members alike to help increase the reach of these valuable resources which can be found at nahb.org/opioids. NAHB plans to continue this initiative and update and add to these resources as they are finalized. These tools will complement similar efforts by federal, state and local governments and healthcare organizations, which can also be found on the NAHB website. A proactive approach to this crisis with knowledge and without stigma is critical to the health of the industry and the people who work in it. Take care, Kim Schneider

Rents for apartments and single family homes are rising nearly as fast as home prices. As already high rents climb higher, frustrated renters may move further away from employment centers or look for smaller apartments. But that doesn’t solve the larger problems of low supply for a growing number of renters and would-be renters choosing to remain in their parents’ homes. Exacerbating the issue is increased legislative interest in rent control — which, rather than addressing affordable housing issues, often creates more challenges, including reduced supply of available units and reduced income to states and municipalities because of slowed or halted development.

Any legislation passed is expected to be signed into law by Gov. Cuomo. • Oregon also made headlines in February for a statewide rent control bill that: • Caps rental rates to 7% over inflation, as measured by the Consumer Price Index (CPI), in any 12-month period; • Requires conversion to month-to-month tenancy after a year; and • Prohibits termination of month-tomonth leases without cause after one year of occupancy.

Other jurisdictions are introducing comparable legislation: • California delegates introduced six new bills to address affordability through rent control. The final bill put forward, AB 1482, places a cap of 5% over Last year in California, a statewide rent inflation on rent across the state, with a control initiative was narrowly defeated, but 10-year exemption for new construction the issue remains on the legislative agenda. and a 10-year sunset. And many additional cities and states are • The Colorado legislature considered a exploring legislation in this arena as an bill in April to repeal a ban on rent intended affordable housing solution. control and allow local jurisdictions to set rent limits. The legislation failed, New York has reached a deal and is but proponents plan to reintroduce expected to vote on legislation this week similar measures next year. that would include provisions to: • A Massachusetts rent control bill • Permanently alter rent-control proposed this year would authorize provisions in New York ahead of the municipalities to enact rent control and current law’s June 15 expiration date. tenant protections. This would overturn Such laws had previously come up for a 1994 ban on rent control. review every few years; • A party-line vote on Nevada’s SB 398 • Extend rent control beyond select has kept the legislation moving localities, such as New York City, to forward. The bill would promote allow municipalities across the state to municipalities’ ability to explore local construct their own regulations; and housing solutions, including rent • Remove vacancy decontrol provisions, control. which have allowed landlords to remove units from regulation once they reach a • An Illinois representative introduced the first of several statewide rent certain threshold.

control bills (HB 255), but it did not pass in the Commercial Law Subcommittee. Several 2020 presidential candidates have taken positions on rent control as well: • Sen. Bernie Sanders (D-Vt.) has endorsed both increased housing production and rent control. • Sen. Elizabeth Warren (D-Mass.) has introduced a bill that includes rent control elements. • Sens. Kamala Harris (D-Calif.) and Cory Booker (D-N.J.) have endorsed direct rental relief assistance, and • Sen. Kirsten Gillibrand (D-N.Y.) has advocated for continued partnerships between HUD and local community development groups to produce housing. She has also endorsed Sen. Warren’s bill.

There is no single “silver bullet” solution to the challenge of making housing more affordable. The effort requires comprehensive strategies and a variety of tools to reduce costs, boost supply and empower aspiring home buyers and renters. A new report, “Rent Control in Illinois: Consequence and Alternatives for Expanding Affordable Housing,” offers insights into how rent control can affect supply and quality of housing. The National Multifamily Housing Council (NMHC) also provides a map indicating how each state currently legislates rent control and inclusionary zoning. Additional resources on housing affordability are available at nahb.org/ housingforall.

A recent Eye on Housing blog post revealed that 53% of buyers actively searching for a home to buy in the first quarter of 2019 have been looking unsuccessfully for at least three months. Why is it taking these buyers so long to pull the trigger? The most important reason is they can’t find a home at a price they can afford (46%), followed by not finding a home in the neighborhood of their choice (40%) and not being able to find a home with the features they want (38%). These were the findings from the most recent Housing Trends Report (HTR), a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for sale in their markets. The HTR is produced quarterly to track changes in buyers’ perceptions over time. Comparing these findings to similar data from a year earlier shows a five-point drop in the top reason respondents cited as their biggest barrier to homeownership — finding a home at a price they can afford. Future data will determine if this is an ongoing trend. If the right home remains elusive for these buyers in the months ahead, these house hunters reported they will do the following:

•

56% will continue looking for the ‘right’ home in the same preferred location,

•

41% will expand their search area,

•

30% is willing to accept a smaller/older home, and

•

21% might buy a more expensive home.

Giving up on homeownership is the least likely outcome, as only 14% will stop trying to find a home.

NAHB economist Rose Quint provides more details in an Eye on Housing blog post available online at https://bit.ly/2wWc3W6.

The estimated number of job openings in the construction industry increased to 404,000 in April, a post-Great Recession high, according to the latest figures from the Bureau of Labor Statistics Job Openings and Labor Turnover Survey. NAHB is working to increase the association's focus on this critical issue. Greg Zick has been hired to serve as the Assistant Vice President for Workforce Development. For more information, please contact Greg at gzick@nahb.org.

Arizona and Florida have long been popular retirement destinations — not only for their warmer climates, but factors such as cost of living and local taxes as well. These same factors are making other areas increasingly attractive, with New Mexico now edging out its Southwest neighbor and the Sunshine State as the No. 1 retirement destination, according to a new survey by United Van Lines. “I think New Mexico is getting a lot of its traffic from California,” observed Deborah Blake, principal at The Ipsum Group. “People are exiting because of cost of living, and property and income taxes.” California currently has the top individual tax income rate of 13.3%, and it ranked eighth out of all 50 states in average real estate taxes, based on NAHB analysis of data from the 2017 American Community Survey and U.S. Census Bureau, at $4,623 annually. (New Jersey — another state seeing a fair amount of outbound migration — tops that list with average real estate taxes of $8,485 per year.) New Mexico, on the other hand, is near the bottom 20% of states, with annual real estate taxes averaging around $1,500. An income tax rate of 4.9% and a median home value of $171,300 also make it a more attractive retirement option — especially for buyers who have accumulated a fair amount of equity in their current homes.

“Most 55+ buyers are looking to downsize,” Blake noted. “If they can’t take advantage of their home equity, they’re not making the move.” Buyers are looking not only to purchase price, but also upgrades, as ways to maximize their equity and create a home they can live in independently for years to come. They believe this will be their last home, so they want to finally have everything they have pinned on their Pinterest boards and dog-eared in home and garden magazines — from wine refrigerators and pro-style kitchen appliances to built-in grills and fireplaces for their back patios. Small, low-maintenance back yards with open space and great views are also big pluses for these buyers and can generate lot premiums for the developer, too. “These buyers spend double what a conventional buyer spends on upgrades, but they’re more much sensitive to monthly costs,” she added, which is why cost of living is an important consideration in boomers’ retirement decisions. This includes energy-efficient features that can help lower their monthly costs — a strong concept that resonates well with this market. Destinations such as New Mexico and Arizona are relatively disaster-free zones as well, which Blake anticipates may be a growing concern, given the impacts of wind and flooding in hurricane- and tornado-prone areas and boomer buyers’ desire for more low-maintenance housing as they age. Boomers working later in life and adult children more frequently living at home may also impact when and where 55+ buyers choose to retire.

President Trump announced at a White House event that the administration has finalized a rule to expand the use of health reimbursement arrangements (HRAs). “NAHB commends President Trump for taking steps to reduce health care costs for businesses and workers alike by promoting the increased use of health reimbursement arrangements,” said NAHB Chairman Greg Ugalde, who attended the White House briefing. “With health care costs soaring, HRAs are important tools that allow home builders and other small businesses to help their workers defray the high cost of insurance premiums and other out-of-pocket medical expenses. Expanding the availability and permitted use of HRAs through issuance of this final regulation will help bring choice and affordability to the health care marketplace.”

The House Financial Services Committee voted to advance NAHB-supported bipartisan legislation that would reauthorize the National Flood Insurance Program for five years through Sept. 30, 2024. NAHB has made a long-term reauthorization of the NFIP a top legislative priority and the bill agreed to by Chair Maxine Waters (D-Calif.) and Ranking Member Patrick McHenry (R-N.C.) includes many NAHB-supported reforms to the program. Specifically, the NFIP Reauthorization Act of 2019 would:

•

HRAs allow employers to offer pre-tax dollars to insured employees to help pay premiums and/or other out-of-pocket costs associated with medical care and services.

•

The Departments of Treasury, Health and Human Services, and Labor last year proposed a new regulation that expands the effectiveness of HRAs to help employees pay for health insurance. The final rule allows HRAs to be used to cover the cost of health insurance premiums. Medical expense reimbursements from HRAs are taxpreferred, providing a similar tax advantage as employer-sponsored insurance coverage.

•

The final rule further allows employers that offer traditional health insurance to also offer an HRA up to $1,800 to cover other qualified medical expenses, such as premiums for vision and dental insurance. NAHB led the fight for Congress to reinstate HRAs in 2016, which help home building firms and other small businesses provide health benefits to their employees. Most small companies do not have human resource departments or benefits specialists. HRAs offer these businesses a simpler way to help their employees obtain health coverage.

•

Increase funding for flood risk mapping and mitigation. Provide premium credits for not currently recognized mitigation activity. Create a new zone to account for leveeprotected areas. Establish umbrella coverage options for multifamily development.

In a letter of support sent to Reps. Waters and McHenry prior to the committee vote, NAHB said that the NFIP Reauthorization Act of 2019 “reflects the principles of affordability, accessibility, predictability and financial stability that NAHB believes must be part of any NFIP reauthorization.” The letter also stated that the bill “would ensure stability in the housing market and prevent unnecessary lapses in the program as we enter into the hurricane season.”

Senate Banking Committee Chair Mike Crapo (R-Idaho) has indicated he will consider the legislation in the Senate. NAHB urges Congress to swiftly pass a long-term reauthorization of the NFIP. View a one-page outline online at https:// bit.ly/2L4EjOH and section-by-section summary of the bill online at https:// bit.ly/2Zyw4hH.

In a sign that housing affordability is becoming a growing issue nationwide, as of the first quarter of 2019 exurbs were the only region that registered single-family permit growth on a year-over-year basis, according to the new NAHB Home Building Geography Index (HBGI). The HBGI is a quarterly measurement of building conditions across the country and uses county-level information about single-family and multifamily permits to gauge housing construction growth in various urban and rural regions. Visit nahb.org/hbgi for tables, historic data and details.

As of 2019, the entire baby boomer generation is now officially at least 55 years old. What do these 75 million consumers in a strong 55+ housing market want in their homes for their ‘golden years’? According to NAHB’s What Home Buyers Really Want, baby boomers are keenly interested in energy efficiency, but the vast majority (81%) want to invest in durable materials that need to be replaced less frequently as well. Using durable materials in construction can also be a green building strategy, resulting in a lower environmental footprint with less waste and resources needed for upkeep. Their use may qualify for points toward green home certification under the National Green Building Standard (NGBS). Craig Havenner, president of NAHB member firm The Christopher Companies, is seeing this interest among his buyers at The Crest of Alexandria, a 55+ community in Northern Virginia seeking NGBS certification. As a standard, the company installs durable materials such as hardwood cabinets and flooring, granite countertops and ceramic tile on the interiors, as well as the fibercement siding on the exteriors. “The tastes and upgrade demands of our clients are similar to moveup home buyers,” Havenner noted, regarding finishes such as kitchen cabinets, hardwood and ceramic tile flooring, trim and light fixtures. Owners are requesting upgraded appliances — such as a smart oven and range — but there has not been much demand for wholehouse smart-home technology. “This demographic isn’t really interested,” Havenner observed. “Fast, reliable Internet, building security and access controls, and smart thermostats are of primary importance.”

Overall, 44% of builders reported using drones in 2019 — down just slightly from the 46% in 2018, but considerably higher than the 22% who reported using drones in 2016, the first time NAHB included the survey question. So how are these eyes in the skies being used? By far, the most common purpose is aerial photographs for promotional materials. A whopping 84% reported this is the primary reason for their use of drones, compared to under 30% who cited other motives such as tracking progress during development of the site or seeking preliminary surveillance before starting the project.

Drone use steadily rises in tandem with the number of homes started. The NAHB survey shows the portions of builders using drones in 2018 included:

• • • •

31% of those with fewer than six starts 40% of those with six to 24 starts 55% of those with 25 to 99 starts 75% of those with 100 or more starts

NAHB Senior Economist Paul Emrath provides more details in an Eye on Housing blog post at https:// bit.ly/2ZsUA3J.

Survey results indicate boomers have an eye toward the environment outside their homes as well to explore and stay connected with the surrounding community. The multifamily development includes popular community amenities — many of which can contribute toward NGBS certification — such as:

• Walkability to shopping, dining and entertainment, • Outdoor spaces such as gardens (including raised planters for accessibility), standard and ADA-compliant outdoor kitchens, and paths and walking trails, and

• Fitness activities such as pickleball courts, yoga lawn and fitness stations. “Christopher Companies has clearly taken the interests of its target demographic to heart to create a development that fits both the needs and the lifestyle of today’s 55+ buyer,” stated Dean Schwanke, vice president of multifamily housing. “The construction materials and practices we saw being installed were chosen not only for aesthetics but also with performance and client satisfaction in mind.”

In a big win for builders, the EPA on May 28 modified its stormwater construction general permit (CGP) to address several of NAHB's concerns. The major issue EPA addressed was to remove the "joint and several" liability language in the permit that could hold a builder responsible for another builder's failure to comply with the Clean Water Act.

2600 Gateway Ave, Ste 1 Bismarck, ND 58503