Bismarck-Mandan Home Builders Association
ATTEND THE HOME SHOW page 8
HOUSING POLICY, PROFESSIONAL DEVELOPMENT page 7
UNDERSTAND THE DANGERS AND PROPER USE OF CHEMICALS page 10
FUND GRANTS $60K TO BUILDERS AND HBAS AT IBS page 13
Building Buzz is a publication of the Bismarck-Mandan Home Builders Association 2600 Gateway Ave., Suite 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730
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Publisher/Editor: Dot Frank Layout Editor: Stephanie Drietz - Drietz Designs Contributor: Tracy DeForest
New Members & Anniversaries New Members Anderson Yardworks, LLC Cole Anderson
Lowe's Home Improvement Bismarck Tim Robinson
Time to Renew! Members with February Anniversaries. Renew by March 31, 2019. Century 21 Morrison Realty
Northwest Contracting, Inc.
Alliance Real Estate
Northern Improvement Co.
Bismarck Winsupply Co.
Missouri Basin Materials, Inc.
Majestic Homes LLC
Bismarck Mandan Apartment Association
Knutson Homes, Inc.
Big River Builders, Inc.
J & R Vacuum & Sewing
Sam's Club 4933
J & D Construction, Inc.
Premier Homes, Inc.
Hallmark Homes, Inc.
Flickertail Construction, LLC
Front Street Lighting
First Community Credit Union
Fleck's Furniture & Appliance, Inc.
Fargo Glass & Paint Co.
Wells Fargo Home Mortgage
Weisz & Sons, Inc.
Dakota Community Bank & Trust
BNC National Bank
T & M Electric
Bismarck Lumber Co.
American Bank Center
Red Deer Homes
Advanced Truss Fabricators
Your membership is three-in-one: BMHBA, NDAB and NAHB
Professionals building our community through promotion of home ownership, education and legislation since 1958.
2019 Board of Directors PRESIDENT
Jeff Sattler Sattler Homes Phone: (701)255-7628 email@example.com
Lynn Klein Gate City Bank Phone: (701) 355-7633 firstname.lastname@example.org
1ST VICE PRESIDENT
2ND VICE PRESIDENT
Susie Franklin Choice Financial Phone: (701) 751-7282
Rory Anderson Verity Homes of Bismarck Phone:(701) 354-2846 email@example.com
Greg Meidinger Aspire Homes (701) 426-8583 firstname.lastname@example.org Chad Moldenhauer K&L Homes Inc. Phone: (701) 258-4584 email@example.com Bill Schmid Townsquare Media Phone: (701) 250-6602
Brian Eiseman Stoneshire Builders Phone: (701) 471-6935 firstname.lastname@example.org
Joe Hillerson Boulder Homes (701) 400-5554 email@example.com
Marc Menge BNC National Bank Phone:(701) 250-3000 firstname.lastname@example.org
Jamie Schmidt Triton Homes Phone: (701) 223-3030 email@example.com Greg Zenker Northern Plains Plumbing, Heating & Air Phone: (701) 222-2155 firstname.lastname@example.org
BIANCO REALTY SALES AWARDS Bianco Realty has announced their top 6 "REALTORSÂŽ OF THE MONTH" for February: Judy Maslowski, Shirley Thomas, Darcy Fettig, Amy Asche, Amber Sandness and Justin Mundahl. These six REALTORSÂŽ had the highest sales totals at Bianco Realty in February 2019.
Precision Concrete Cutters, Inc.
Building Buzz | March 2019
January 2019 Building Permits Data not collected for the ETA in 2015 and 2016.
SINGLE FAMILY BISMARCK PERMITS BISMARCK ETA MANDAN PERMITS LINCOLN PERMITS BURLEIGH/MORTON MONTH YEAR 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 JANUARY 0 9 1 0 10 0 0 0 1 0 0 2 0 0 2 0 0 2 0 0 0 0 2 FEBRUARY 3 4 5 2 0 0 1 2 6 5 0 0 0 3 1 1 0 0 MARCH 21 22 14 2 2 2 11 6 4 8 0 3 0 0 9 9 4 2 APRIL 52 29 40 27 4 3 14 12 8 16 18 2 4 0 14 5 11 11 MAY 31 46 29 16 5 6 26 13 11 15 17 2 5 5 14 16 7 20 JUNE 31 43 48 24 10 2 21 20 13 13 1 6 3 1 8 11 4 4 JULY 40 16 60 22 3 3 9 13 6 11 0 5 1 5 13 9 4 3 AUGUST 20 48 16 27 6 1 17 7 13 20 8 2 9 4 8 9 6 8 SEPTEMBER 28 44 26 22 8 3 16 14 26 11 3 3 4 5 9 9 9 6 OCTOBER 54 14 22 15 4 7 9 29 20 9 17 10 7 5 4 7 3 7 NOVEMBER 16 11 9 11 3 0 7 7 7 6 2 5 0 0 3 4 1 0 DECEMBER 1 0 0 1 0 0 0 0 0 0 1 0 4 0 0 0 2 0 TOTAL 0 9 1 0 10 0 0 0 0 0 1 0 0 2 0 0 2 0 0 2 0 80 51 61 2
BISMARCK ROW HOUSE
HUNTINGTON HOMES........................................... 303 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 305 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 307 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 309 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 311 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 313 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 306 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 308 BUCKSKIN LOOP
LINCOLN SINGLE FAMILY DWELLING
RUSCH HOMES......................................................... 6920 MAJESTIC PL RUSCH HOMES......................................................... 6921 MAJESTIC PL
MORTON CTY SINGLE FAMILY DWELLING
DAVID TERNES CONST...........................................2610 35TH ST
BURLEIGH CTY SINGLE FAMILY DWELLING
MICHAEL MALARD CONST................................... 819 APPLE RIDGE RD
BISMARCK SINGLE FAMILY DWELLING
CENTURY 21 Morrison Realty Call us today at 701.223.6654
BOULDER HOMES................................................... 3300 VALLEY DR EDDY MITZEL HOMES............................................ 612 FLINT DR
March 2019 | Building Buzz
am glad to see warmer temperatures in the forecast. February sure felt like it was the coldest on record. Now that we are into March, we can all look forward to warmer temps and gearing up for the start of our construction season.
The Home Show is fast approaching (March 15th -16th) and booths are still available. If you would like to participate in the Home Show contact the BMHBA office or visit www.bismanhomeshow.com, Dot or Tracy will help get you signed up. I am looking forward to seeing the new products that our vendors will have this year.
In February the NDAB co-hosted the Chili & Oyster feed at the Ramada along with the Realtor association. Thank you to the members who made it out to socialize and talk with our ND Legislators. We had about 50 members in attendance between both associations and had good conversation for a couple of hours.
We had the annual Chili Cookoff between the board members on Feb 22nd. Thank you to everyone who came out to enjoy chili, beers and good company. Congratulations to Deb Schmidt, I mean Bill Schmidt for winning the competition. Save the date for the Spring Parade of Homes April 25th – 28th. You should be receiving your contacts this month to register homes for the parade. I encourage the builders to get the contracts filled out and sent in. Remember that this event is not only for the builders, but any member can display items in the home or help man the ticket desks.
Last but not least I encourage all of our members to recruit other people in the industry to join our association. We are only as strong as our members. The larger our association gets the more influence we have on Local, State and National issues. Make sure to sign up for these upcoming events:
1. Home Show - March 15-16 at the Bismarck Event Center
- Opportunity to start 2019 construction season off strong - Discount for 1st time exhibitors
- Get you booth by visiting www.BisManHomeShow.com
2. Spring Parade of Homes - April 25th – 28th
Jeff Sattler, President
Building Buzz | March 2019
HOME SH0W MARCH 15-16
BISMARCK EVENT CENTER
HOUSING STARTS REBOUND IN JANUARY Total housing starts rose 18.6% in January to a seasonally adjusted annual rate of 1.23 million units from a downwardly revised reading in December, according to a report from the U.S. Housing and Urban Development and Commerce Department that was delayed due to the partial government shutdown.
The January reading of 1.23 million is the number of housing units builders would begin if they kept this pace for the next 12 months. Within this overall number, single-family starts surged 25.1% to 926,000 units. Meanwhile, the multifamily sector, which includes apartment buildings and condos, increased 2.4% to 304,000. “The bounce back in single-family starts mirrors our builder confidence surveys, as sentiment fell in the latter part of 2018 but rebounded in January after mortgage rates showed a notable decline,” said NAHB Chairman Greg Ugalde.
“Some single-family projects that were on pause in December, meaning they were authorized but not started, went online in January. However, builders remain cautious as single-family permit numbers in January were somewhat soft,” said NAHB Chief Economist Robert Dietz.
Regionally, combined single-family and multifamily starts in January rose 58.5% in the Northeast, 29.3% in the West and 13.8% in the South. Starts fell 5.7% in the Midwest.
Expect the best in home building.
Overall permits, which are often a harbinger of future housing production, rose 1.4% to 1.35 million units in January. Single-family permits fell 2.1% to 812,000, the lowest level since August 2017. Multifamily permits increased 7.2% to 533,000. Looking at regional permit data, permits rose 33.1% in the Midwest and 26.4% in the Northeast. Permits fell 8.9% in the West and 3.5% in the South.
FREE ADMISSION FRIDAY!
3PM - 9PM
EXPANDED TODDLER TOWN KIDS SCAVENGER HUNT
10 AM - 6PM
March 2019 | Building Buzz
CITY & COUNTY KEEP MANDAN BEAUTIFUL APRIL 27 The Community Beautification Committee and Mandan Progress Organization are seeking volunteers to pick up litter on Sat., April 27, from 9 a.m. to noon. The event will kick off at Dykshoorn Park on west Main Street where volunteers will receive instructions, trash bags and safety vests. Volunteers are asked to wear long pants and to bring protective work or garden type gloves.
More information about the clean-up day will be posted at www.cityofmandan.com as details become available. Volunteers may sign up on the website under “Meeting & Event Registration” under the “Our City” tab. The alternative date in case of inclement weather is May 4.
MEMBERS RAKE IN REBATES HBA members are eligible to apply for and receive rebates on common products they purchase to place in new homes. The BMHBA recently mailed an HBA Rebate magazine to all builder members and suppliers to provide details on the program.
Submission is simple and occurs quarterly. Payments are made quarterly too. Last year only three members took advantage of the program, which leaves thousands of dollars to be claimed by other members and the association. Hopfauf Custom Homes, Hallmark Homes and Stoneshire Builders received $1668 back from submissions. The HBA also received $41.73 in non-dues revenue from their claims. Details about the HBA Rebate Program is available online at www.HBArebates.com.
HIGHWAY 1806 N RECONSTRUCTION MOVES AHEAD
City Commissioners recently approved recommendations for the Highway 1806 North reconstruction project slated for 2020. After receiving citizen input during a November meeting, KLJ and the North Dakota Department of Transportation (NDDOT) submitted a list of project alternatives to the City Planning and Engineering Department. City Engineer Justin Froseth then presented his recommendations to the City Commission on Jan. 22.
The most notable recommendation is a proposed roundabout at the intersection of Collins Avenue and Old Red Trail. According to the Federal Highway Administration, the intersection of Collins Avenue and Old Red Trail does not currently warrant signalization. Therefore, the City Commission has approved moving forward with the design phase of reconstructing the intersection as a roundabout.
The other option is to leave it as a four way stop. The preliminary design of the roundabout for this intersection has large trucks in mind and would be the same size as the roundabout east of Bismarck at the intersection of Highway 10 and 66th Street. The roundabout will be offset to the west to avoid major utilities. It would improve existing traffic delays during peak hours, and continue to function well into the future. Safety benefits of roundabouts include reducing conflict points and the severity of crashes due to low entry and circulatory speeds.
Other areas being addressed along Highway 1806 North include the Mandan Avenue interchange ramps with I-94. The approved recommendation for the interchange is to square up the ramps so they meet Mandan Avenue at a 90-degree angle and align across from each other, which will allow for signalization in the future if warranted. The City of Mandan is not responsible for cost-sharing this part of the project since it is part of the interstate system. North of the intersection is a curve in the roadway adjacent to the southeast gate of the Mandan refinery. The recommendation is to increase the curve to a radius that allows for a 25-mph speed limit and allows for two turning trucks to get through.
Another area being addressed is Highway 1806 north of the Collins and Old Red Trail intersection. NDDOT’s analysis indicates the roadway’s substructure is in good shape. Commissioners approved a major rehabilitation that resurfaces and widens the roadway to include 12-foot driving lanes and 3-foot shoulders for each side, softening the ditch grade from the edge of the road to the bottom of the ditch. This option includes the addition of northbound and southbound turning lanes into 27th Street NW. The reconstruction project will include replacing the lighting along Mandan Avenue to match what is installed along Old Red Trail and meet lighting standards. For all reconstruction segments of the project, the Engineering and Planning Department is recommending concrete over asphalt. The City will cost-share 10% of the Highway 1806 North reconstruction project. The project is scheduled to be bid in the fall and constructed in 2020. Sanitary sewer extension. Coinciding with the reconstruction project, sanitary sewer trunk line will be extended north and west along Old Red Trail unlocking the potential for growth in the north-central area of the city. The sanitary sewer pipeline construction work is estimated to be an additional $750,000 and funds will need to be identified locally.
The single-lane roundabout would have a 175-foot diameter, making it almost three times the size of the mini roundabouts tested in July 2018.
Building Buzz | March 2019
CITY & COUNTY HOUSING POLICY, PROFESSIONAL DEVELOPMENT “Housing North Dakota,” a conference hosted annually by North Dakota Housing Finance Agency brings affordable housing-industry professionals and community leaders together for two days of professional development and policy discussions. The 2019 event is May 20-21 at the Ramkota Hotel in Bismarck, ND. “To successfully address North Dakota’s current affordable housing needs, it’s essential to have an understanding of governing policies and available resources,” said Jolene Kline, NDHFA executive director. “At Housing North Dakota, attendees will hear from recognized experts and can make real face-to-face connections.”
Conference presentations on May 20 will focus on policy and include a discussion with Gov. Doug Burgum of the state’s most pressing housing issues and a future forecast from Demographer Ken Gronbach. At noon, Stockton Williams of the National Council of State Housing Agencies will provide a Washington Briefing. Afternoon plenary sessions include a panel discussion on local legislative accomplishments, recommendations for attracting and retaining a 21st Century Workforce and a strategic planning presentation focused on understanding the impact of market forces. The May 21st concurrent sessions offer professional development opportunities for lending and real estate professionals, multifamily housing developers, and property owners and managers. NDHFA will present its Champion of Affordable Housing Awards on the second day of the event as well. The awards recognize and honor exceptional affordable housing contributions made in North Dakota.
Continuing education applications have been submitted to the ND Real Estate Commission, ND Real Estate Appraiser Qualifications and Ethics Board, and the ND Board of Social Work Examiners. Credit will be offered upon the approval of the program by these licensing organizations. Conference attendance can also be submitted for the National Development Council’s Housing Development Finance Professional, the National Apartment Association’s Certified Apartment Manager and the National Association of Homebuilders’ Housing Credit Certified Professional recertifications. Register online at www.ndhfa.org by May 10, 2019, to receive the lowest rates, $170 for the Full Conference (Policy and Training Day) and $90 for Policy Day or Training Day alone. After May 10, 2019, Full Conference is $190 and Policy Day or Training Day alone is $100.
…it’s essential to have an understanding of governing policies and available resources.
PROPERTY OWNERS NOTIFIED OF INCREASED VALUATIONS The City of Mandan Assessing Department will be mailing notice of increases by March 26 to property owners with a 2019 real estate valuation increase of $3,000 and 10% or more.
Owners not in agreement with the assessed value may initiate a review of the property valuation by contacting the Assessing Department. Owners may ultimately appeal the valuation to the Mandan Board of Equalization. If you do not receive a notice, you may call the department to find out the taxable value of your property for 2019.
The Mandan Board of Equalization meets at City Hall on April 16 at 7 p.m. to discuss property valuation changes. Mandan’s actions will be forwarded to the County Board of Equalization, which meets June 10 at 6 p.m. at the Morton County Courthouse. Local taxing authorities will take valuations into account when setting mill levies used to generate property tax revenue for 2020 budgets.
The State Board of Equalization requires all property be valued within 10% of prevailing market values. Frequent reasons for notices of increased value include properties with a new or additional structure added within the last year and situations involving expiration of an exemption, such as for new homes or businesses. Values also may change in 2019 as a result of fluctuating market value due to sales of comparable properties occurring in 2018. For more information, visit www. cityofmandan.com/assessing. To request a reassessment of a property, please call 667-3232.
March 2019 | Building Buzz
ATTEND THE HOME SHOW HOME SH0W
BISMARCK EVENT CENTER
EXPANDED TODDLER TOWN
FREE ADMISSION FRIDAY!
KIDS SCAVENGER HUNT
3PM - 9PM 10 AM - 6PM
The association is excited to host more than 180 exhibitors at the 42nd Annual Home Show. The annual event is anticipated by members and residents alike. Support the HBA by attending the event and sharing an invite to attend with others. Friday is free admission courtesy of American Bank Center. American also is giving away one attendee $500 on Saturday.
Toddler Town is back with more sponsors then ever. Play structure sponsors include Bismarck Heating & Air, Interiors by France, 4T Ranch Developers, Mandan Sporting Goods, Corral Sales, Capital Credit Union and Cappuccino on Collins. Ride-on cars are new this year courtesy of Kupper Chevrolet.
BOARD MEMBERS REGAINS TITLE The association held its annual chili cookoff Builders, Beans & Beer - on Feb. 21. The event pits board members against each other to see who can cook the best tasting crock of chili.
Members sampled the fare and put a ticket in a cup next to their favorite. This year’s Chili Champ is board member Bill Schmid. Bill is a repeat champion who was knocked out of first place last year by board member Marc Menge.
The chili cookoff has been a member favorite for years. Featuring good food, free beer and a casual environment. Thank you members and directors for spending the evening with us.
A Kids Scavenger Hunt presented by the Chamber EDC starts Saturday at 10 a.m. Children can visit booths by Northland Insurance Agency, Inc., Century 21 Morrison Realty, Advanced Mechanical, Coldspring, Starion Bank, Northland Concrete & Excavation, Rivers Edge Plumbing and Heating, Inc., Bismarck Heating & Air Conditioning Inc., BEK Communications, The Door Guys LLC, Proximal50 Life Center, Backyard Escapes by Kerner Pools & Spas, Bobcat of Mandan, Bisman Remodel Pros, LLC, Gietzen Construction and House of Color. Our tote sponsor is First International Bank & Trust and the VIP Lounge is sponsored by Northwest Contracting. Visit www.BisManHomeShow.com for show details and a map.
Board member Bill Schmid and his wife Deb were named the 2019 Chili Champs.
QUARTERLY MEETINGS CONTINUE IN MARCH The association will meet with City of Bismarck leadership this month to talk about items that impact home building. The March 18 meeting is the first of your lined up for 2019.
Let’s Build Together.
When it comes to building a home, there are a lot of decisions to be made. But when it comes to your closing, we’ve got you covered.
701.223.6835 TheTitleTeam.com Montana | North Dakota | Minnesota
Building Buzz | March 2019
Representatives from the BMHBA include Dot Frank, Lynn Klein, Chad Moldenhauer, Rory Anderson, Jeff Sattler, Brian Eiseman, Greg Zenker, Chad Wachter and Greg Meidinger. Bismarck staff attendees include Keith Hunke, Jason Tomanek, Gabe Schell, Kim Lee, Brady Blaskowski, Terry Halstengard, Michelle Klose and Ben Ehreth.
Items for discussion fall under engineering, public works, building inspections and planning. If you have topics that you would like covered during one of the meetings, please reach out to Dot at the HBA.
EVENTS VISIT BISMANPARADE.COM FOR DETAILS
2019 Calendar of Events March 15-16
BMHBA Home Show
We're excited to present the 2019 Home Show at the Bismarck Event Center. The HBA is pulling out all stops to ensure a successful event for exhibitors. Visit BisManHomeShow.com.
Spring Parade of Homes
Save the date so you remember to get your home(s) ready for the Spring Parade. Details at BisManParade.com.
May 16 HOME BUILDERS ASSOCIATION
- 2019 SPRING -
PARADE OF HOMES
THURSDAY-SUNDAY APRIL 25-28
TICKETS AVAILABLE AT EACH HOUSE
$10 for ADULTS CHILDREN FREE
Tickets valid for all homes all four days.
SPRING PARADE OF HOMES REGISTRATION OPENS Registration is open for the 2019 Spring Parade of Homes. Registration documents were emailed and mailed to all builder members. Additionally, the documents may be found online at www.BisManParade.com.
The association encourages all builders to enter a home in the event to showcase their craftsmanship and get a start on spring sales. Associate members are prompted to contact participating builders to see how they can help at the house and/or promote their own products and services during the event.
Spring Awards Mixer & GMM 5:00 - 8:00 P.M. Baymont Inn, Mandan
• Presentation of the Spring Parade of Homes Awards • Remarks from BMHBA President & Executive Officer • Hot Appetizers and Open Bar
PAC Fundraiser Golf Tournament Prairie West Golf Club
Sporting Clay Shoot 4:00 - 7:00 P.M. Capital City Sporting Clays
The Spring Parade of Homes is April 25-28. The four-day event attracts close to 3,000 ticketed adults. The cost to attend is $10 for adults and children under 18 are free.
BISMARCK ENGAGES DEVELOPMENT COMMUNITY IN EVALUATION OF RIGHT‐OF‐WAY AND STREET STANDARDS
The City of Bismarck is engaging the development community in a conversation regarding public right-of‐way width requirements for new subdivision plats in the city ordinance, and what components makeup that width. On Feb. 7, the city met with developers, consulting engineers and Home Builders Association representatives to discuss street widths, boulevard widths, sidewalk widths and the use of mountable curbs for new street construction.
The current ordinance allows for flexibility in some of these aspects that can be approved on a case by case basis. The development community has requested that this flexibility be written into the city’s ordinance to provide more assurance that a project or concept would be viewed favorably. Any proposed changes to city ordinance to modify the public right‐of‐way width would include public hearings held at the Bismarck Planning and Zoning Commission and Bismarck City Commission prior to adoption. As these changes are presented, the city will seek input from the public. March 2019 | Building Buzz
NATIONAL NEWS NATIONAL NEWS NATIONAL NEWS
2019 CHAIRMAN HIGHLIGHTS 2 KEY VICTORIES IMPORTANT TO YOUR BUSINESS
BIPARTISAN TAX EXTENDERS BILL INTRODUCED IN SENATE Senate Finance Committee Chairman Charles Grassley (R-Iowa) and Ranking Member Ron Wyden (D-Ore.) have introduced the Tax Extender and Disaster Relief Act of 2019, NAHB-supported legislation that would reinstate and extend key housing tax provisions through Dec. 31, 2019. Of note to the housing community, the legislation addresses what is known as the “tax extenders,” a series of temporary tax provisions that expired at the end of 2017. The bill would retroactively reinstate in 2018 and extend the following expired tax provisions through 2019:
2019 NAHB Chair Greg Ugalde, in a new video series, outlines two important victories that NAHB has secured for its members already this year: the IRS waiving penalties associated with estimated quarterly tax filings and a key victory in a construction liability case supported by the NAHB Legal Action Fund.
NAHB is launching this new monthly video series to highlight how the association is addressing key issues impacting its members and delivering results that make a difference to their businesses’ bottom lines. The entire video series will be posted at nahb.org/chairmans-update.
UNDERSTAND THE DANGERS AND PROPER USE OF CHEMICALS Chemicals such as glues, solvents, paints and pressurized gases are commonly used in the home building process. But they can be hazardous to individuals when not used properly.
More than 32 million American workers are exposed to hazardous chemicals in the workplace. OSHA estimates that nearly 650,000 different types of chemicals are present in close to 3 million workplaces. According to the National Safety Council, harmful substances and chemicals in the workplace contributed to 37,110 injuries and illnesses, and 531 fatalities in 2017 alone.
What should a worker do when exposed to hazardous chemicals? OSHA provides guidance on this topic on its website including chemical hazard recognition, controlling exposures, and worker education and training. NAHB also has addressed the presence of chemicals in the home building industry in its most recent video toolbox talk, available in both English and Spanish on nahb.org.
Building Buzz | March 2019
Deduction for Mortgage Insurance. Allows taxpayers, subject to an income cap beginning at $100,000, to deduct premiums paid for private mortgage insurance and FHA/RHA/VA insurance premiums.
Section 45L Tax Credit for Energy Efficient New Homes. Provides builders a $2,000 tax credit for the construction of homes exceeding heating and cooling energy standards by 50%. The base energy code is the 2006 International Energy Conservation Code plus supplements. Builders must have tax basis in the home to claim the credit (i.e., they must own and then sell/lease the residence). Section 25C Tax Credit for Qualified Energy Efficiency Improvements. This policy offers 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. Section 179D Energy Efficient Commercial Buildings Deduction. Provides a deduction of up to $1.80 per square foot for commercial and multifamily buildings that exceed specific energy efficiency requirements under ASHRAE 2007.
Mortgage Forgiveness Tax Relief. The provision eliminates any taxes home owners might face due to renegotiating the terms of a home loan, which result in forgiving or canceling a portion of the outstanding mortgage, particularly in connection with short sales. It applies only to principal residences and is extended until Jan. 1, 2020 The Section 25D tax credit, which offers a 30% tax credit for the installation of qualifying alternative energy equipment, remains in effect. However, the 25D credit is being gradually phased out and will expire starting in 2022. The legislation also provides temporary tax relief for victims of most major natural disasters that occurred after Jan. 1, 2018. For more information, contact J.P. Delmore at 800-368-5242 x8412.
FED CHAIRMAN POWELL CITES NAHB CONCERNS IN CONGRESSIONAL TESTIMONY Federal Reserve Chairman Jerome H. Powell told the Senate Banking Committee that the housing affordability crisis is due in part to the challenges home builders face with labor shortages and rising material prices.
When asked about the factors contributing to the rising costs to build single-family and multifamily housing, Powell responded with the concerns that he has heard from home builders:
“What you hear from builders is labor shortages, particularly skilled labor shortages … You also hear higher materials costs, some of which are affected by tariffs, of course. You hear [builders] under tremendous cost pressure. That was flowing through into higher prices and that was making the affordability calculus a little bit more challenging for buyers, at the same time [interest] rates were going up … I think altogether that picture slowed down housing construction in the last year or so.”
During “The Semiannual Monetary Policy Report to Congress,” Powell said that the cost of materials, lots and labor are the most important factors in the price of a home. He noted the nation’s immigration policy impacts the availability of labor in the construction industry. Powell also acknowledged that student debt is a barrier to homeownership for millennials. You can listen to his testimony online at https://youtu.be/20bVtLGv61Q.
NAHB’s International Builders’ Show (IBS) is the premier event for those in the residential construction business — especially for the thousands of young building professionals who are the future of the industry. If you’re a young building professional, there is no better place to be than this year’s builders’ show. The NAHB Young Professionals Committee has packed the IBS schedule with programming specifically tailored to the under-45 crowd.
When IBS formally kicks off on Tuesday, come by the NAHBNext Lounge at the NAHB HQ booth (N1739) for Social Recharging Hour every day at 1:30 p.m. Recharge your mind, body and phone with other young builders. NAHB HQ also will host a number of educational sessions on topics ranging from the value of NAHB membership to using social media to advance your business and career.
And of course, there is the Young Pro Party, the featured after-hours event at IBS. This year, the party will be held at Hyde Nightclub in the Bellagio, one of the top clubs in America. It kicks off at 8:30 p.m. on Wednesday, Feb. 20. This is a premium, ticketed event. But the $40 ticket price includes an open bar.
HOME PRICES ARE THE PRINCIPAL BARRIER TO HOMEOWNERSHIP
A recent Eye on Housing blog post revealed that 58% of buyers actively searching for a home to buy in the fourth quarter of 2018 have been looking unsuccessfully for at least three months. Why is it taking these buyers so long to pull the trigger?
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.
U.S. Trade Representative Robert Lighthizer responded to Thompson’s question on housing affordability by talking about softwood lumber. In an official statement, NAHB Chairman Greg Ugalde commended Thompson for raising this issue. Ugalde also stated that Lighthizer’s response highlighted the need for quick action to resolve ongoing trade disputes.
“Lighthizer’s reply essentially confirms that tariffs on imports of Canadian lumber; steel and aluminum; and hundreds of products from China commonly used in U.S. residential construction are contributing to the rising cost of building materials,” said Ugalde. “These higher costs are putting homeownership out of reach of working American families. The administration must resolve these trade conflicts in a manner that will provide a fair deal to American home buyers and businesses.”
As NAHBNow reported earlier, President Trump announced on Feb. 24 that he would delay a scheduled tariff hike from 10% to 25% on $200 billion worth of Chinese imports that was set to go into effect on March 2. The office of the U.S. Trade Representative has released a Federal Register notice stating that the duties will remain at 10% “until further notice.” Preventing the 25% jump in tariffs represent an important win for NAHB and the residential construction sector.
View the video exchange between Thompson and Lighthizer at https://youtu.be/plJBuKzC_Hg.
Comparing these findings to similar data from the fourth quarter of 2017 shows that these barriers to homeownership only intensified during the year in question.
If the right home remains elusive for these buyers in the months ahead, these house hunters reported they will do the following: • 63% will continue looking for the ‘right’ home in the same preferred location
For the Best Prices on a Complete Insulation Package or Material, Contact …
• 44% will expand the search area
• 23% are willing to accept a smaller/older home • 18% might buy a more expensive home
Giving up on homeownership is the least likely outcome, as only 16% will stop trying to find a home. NAHB economist Rose Quint provides more details in this Eye on Housing blog post.
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March 2019 | Building Buzz
The most important reason is they can’t find a home at a price they can afford (49%), followed by not being able to find a home with the features they want (44%), and not finding a home in the neighborhood of their choice (43%).
During a House Ways and Means Committee hearing on U.S.-China trade, Rep. Mike Thompson (D-Calif.) cited concerns raised by NAHB that tariffs on Chinese goods act as a $1 billion tax on residential construction and are exacerbating the affordable housing crisis.
The YP Committee will hold its official meeting on Monday, Feb. 18 at 4:30 p.m., followed immediately by the 2018 NAHB Young Professionals Award Reception. These events are a great opportunity to meet and greet all YP Committee members and get ready for the show to open.
HOUSE HEARING HIGHLIGHTS NEED TO RESOLVE TRADE DISPUTES THAT HARM HOUSING
FINDING CREATIVE SOLUTIONS TO THE HOUSING AFFORDABILITY CRISIS
The North Dakota Association of Builders (NDAB) continues to attend and testify on behalf of our members during this legislative session.
Members are encouraged to follow the action and get engaged as opportunities present themselves. The NDAB sends a weekly email with advocacy updates. To get on the email list contact Sara Frank at email@example.com or call 222-2401.
A WIDE DISPARITY IN STATE PROPERTY TAXES
There is nearly an $8,000 difference between what residents of the state with the highest property taxes pay compared to those who live in the state with the lowest rate.
NAHB analysis of data from the 2017 American Community Survey and U.S. Census Bureau shows that in 2017, New Jersey continued its perennial distinction as the state with the highest average annual tax bill per home owner. Garden State home owners paid an average of $8,485 in real estate taxes in 2017. At the opposite end of the spectrum, Alabama ranked 50th among home owners in average real estate tax paid per year. There, the average real estate tax bill totaled just $678.
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WORK CONTINUES AT CAPITOL
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Building Buzz | March 2019
HBA MEMBERS COMMEND TRUMP ADMINISTRATION FOR PROPOSED WOTUS RULE The Trump administration’s latest proposal to revise the Waters of the United States (WOTUS) definition has been well received by many throughout the industry. The Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers held public hearings in Kansas City, Mo., on Feb. 27 and 28 to give the public an opportunity to comment on the proposed rule, and multiple NAHB members expressed their support.
Members who commented during the hearings included: Brenner Holland, a real estate developer in Kansas City, Mo., and member of HBA of Greater Kansas City; Jerry Passman, a builder in Baton Rouge, La., and a member of HBA of Greater Baton Rouge; and Harold Phelps, a civil engineer in Olathe, Kan., and a member of HBA of Greater Kansas City “The proposal provides clear direction to builders and developers and empowers us to understand for ourselves whether our construction activities require the need for a federal wetland permit,” stated Holland. Meanwhile, in a related development, the Senate voted to confirm Andrew Wheeler as EPA administrator. NAHB has developed a working relationship with Wheeler. Most notably, CEO Jerry Howard attended the event at EPA headquarters in December when Wheeler announced the new WOTUS definition.
The WOTUS definition determines the extent of federally regulated waters under the Clean Water Act (CWA) that requires federal wetlands and stormwater permits for homebuilding activities. Compared to existing regulations, the proposal is widely considered a vast improvement because it would exclude short-lived ponds, streams and tributaries that only flow in response to a rain event from federal regulation. It would also exclude wetlands that are not directly connected to federally-regulated bodies of water.
During the hearings, members described problems with the previous WOTUS rule and explained how the proposed rule is more consistent with Congress’ intent and prior U.S. Supreme Court rulings that sought to have the CWA regulate only those activities that discharged pollutants and/or dredge or fill materials into traditional navigable waters and wetlands that are immediately adjacent to those navigable waters.
Although the members were supportive of the proposed rule, they also suggested some additional areas for improvement. Among their suggestions, NAHB members urged EPA and the Corps to: • Better distinguish the types of ditches that are excluded under the proposed rule from natural tributaries that are regulated when they contribute perennial or intermittent flow to a traditional navigable water.
• Include a flow duration that clearly differentiates “intermittent” streams that are regulated from ephemeral features that are excluded under the proposed rule.
The EPA and Corps’ proposed WOTUS rule is open for public comment until April 15. NAHB members can visit nahb.org/wotus for more on the proposed rule. For additional information, contact NAHB environmental policy analysts Michael Mittelholzer at 800368-5242 x8660 or Evan Branosky at x8662.
NAVIGATING HOUSING’S COMPLICATED MARIJUANA LEGAL LANDSCAPE
The NAHB Legal Action Committee awarded $60,000 in grants to members and local and state associations that applied to NAHB’s Legal Action Fund during last week’s International Builders’ Show.
Although marijuana may be legal in certain states, it is still illegal federally, which has caused uncertainty around legal restrictions not only within the construction industry, but in managing multifamily properties as well.
Grant recipients include:
• Builder members in New York and Ohio, who will use the funds to fight their cases against municipalities for failing to uphold rezoning decisions.
• A builder member in Alabama, to assist with his litigation against a subcontractor and product manufacturer.
• The North Idaho Building Contractors Association, which received another round of funding to support its long-standing litigation against improper sewer connection fees. • A builder member in Virginia, who is preparing to head to the state supreme court to fight a county’s decision to deny a road extension.
After more than 40 years, the Legal Defense Study Committee, now known as the Legal Action Committee, has expanded its review to help defray litigation costs for all builder and developer members, as well as local and state associations, involved in litigation and issues that have a national impact on the housing industry or represent a common industry problem. The Legal Action Fund has a great track record of helping NAHB members and HBAs win cases. Late last year, a Legal Action Fund grant helped HBAs in Nevada prevail in an important construction defect case. For more information, contact Lavon Roxbury, 800-368-5242 x8359.
Neither of those assumptions is correct, however, and both would involve consequences. And there are more confusing scenarios like them. Learn the facts in the March 21 webinar, How Do I Maneuver through the Issues that Marijuana May Bring? A legal expert and program compliance expert will explain all the details to help properties properly comply with the law, including: - Identifying landlord/tenant duties when living in an apartment community
- Interpreting the Fair Housing Law and how it applies to each resident
- Proactively addressing marijuana issues and practice tips to avoid these issues
HCCPs and HCG members can attend the webinar at no charge. There are discounts for members of NAHB Councils and for NAHB members. Non-members are also welcome to register. Sign up today.
The Legal Action Fund was founded in January 1970 as the Legal Defense Study Committee. The original charge of the committee was to review legal issues related to “sensible growth.”
For example, for HUD-assisted or subsidized multifamily properties located in one of the nine states and the District of Columbia in which medical and recreational marijuana use is legal, it may seem legal for residents to use it in their apartments. For HUD-assisted or subsidized properties located in one of the 20 states that allow some form of medical marijuana use, it may seem necessary to provide reasonable accommodation for residents with legal prescriptions.
FUND GRANTS $60K TO BUILDERS AND HBAS AT IBS
NATIONAL NEWS March 2019 | Building Buzz
NDAB President’s Column
To start, I would like to thank the North Dakota Association of Realtors for their partnership in another successful Legislative Impact Day at the Capitol. The room was filled with more than 50 members representing both associations. Working together with other industry groups like the realtors, benefits all of us and we are grateful for the opportunity to do so. We had an hour of insightful conversation with Legislative Leadership and legislators, which is so important to help both builders and realtors thrive in business and be able to offer quality homes to families across North Dakota. There’s power in numbers and when changes in laws are being introduced that may impact our industry and home ownership, we’re there to advocate for both businesses and homeowners. With another month or so to go with the North Dakota 66th assembly still in session, there is still a lot work to do. When you see a call to action regarding state issues, I urge you to reach out and contact your representatives. We all are advocates for our industry. When communicating with your representative, introduce yourself, your business and how the law will impact you. Personal statements from you, are important. The length of your message isn’t as important as the message you are sending from your home town, your experience, and the impact a law would have to you as a business owner in North Dakota.
Along with this being a legislative year, we also have tax season upon us. I want to mention a few reminders about recent changes to the tax code that went into effect in 2018 and even though there have been changes, it’s important to remember that home owners can still take advantage of many tax incentives. Home owners who itemize their federal income tax deductions may still have many deductions that can be taken relating to mortgage interest payments on a first and second home, state and local taxes, including property taxes, and on home equity loans or a home equity line of credit if the loan is used for substantial home improvements, such as remodeling. Mortgage insurance premiums offer another potential deduction. When selling a home, there are provisions that allow qualifying home owners the advantage of not paying capital gains tax. To take advantage of these deductions and provisions, and to check how the tax law did create important changes that could impact individuals and small businesses, you should always check with your tax, accounting, investment or legal professional so that you can determine eligibility.
There is always a lot going on at both the state and national level whose work impacts all of us locally. Bridging all three is a positive for everyone. Stay warm,
Home Builders Assoc. of Fargo-Moorhead Bryce Johnson, Chief Executive Officer hbafm.com • The HBA of F-M's Chili Cook-Off is March 14. This popular member event features the Golden Ladle and Golden Spatula award for best chili and dessert.
• Home Builders Care of Fargo-Moorhead Foundation Fish Dinner Fundraiser is March 22. This event features activities for kids, meat and money raffles, and a live and silent auction! • The Spring Parade of Homes is May 4-5, 11-12 and 18-19.
Forx Builders Association Stacy Anderson, Executive Officer forxbuilders.com •
Don't delay...get your exhibitor contract submitted today! The 44th Annual Home Design & Garden Show is just a few months away. March 22-24, 2019 at the Alerus Center, Grand Forks.
Lindsay Lange, Executive Officer Dickinson Area Builders Assoc. dickinsonareabuilders.com
• Join us April 6th & 7th at the West River Ice Center for the 2019 Home Show. Booth space is still available. Log on to www.dickinsonareabuilders.com to reserve your booth today.
• March is PAC month. Our annual PAC fundraising night is scheduled for March 20th.
Building Buzz | March 2019
• Planning has begun for the DABA Annual Golf Scramble in August. We are looking forward to another great golf outing with our members.
Minot Association of Builders Elysha Head, Executive Officer minotab.com
• The 2019 Home and Garden Show will take place on March 1st and 2nd! Bring the family for events like the Ready Builders Lego Competition, Jellybeanstreet Workshops and the Muus Lumber Kidzone! Take a rest at the Lowe’s Garden Center Patio Pub and learn the basics of baking at Baking Classes with Prairie Sky Breads. Plus, the first 500 kids to the show will receive a free hard hat and hammer from Future Builders! • April is I Like Spike month at the MAB. Stay tuned for more details!
• The 40 Below Council are hosting their third event on May 17th, the Homes and Hops Bar Crawl! As planning continues, check back for specifics about the event.
Western Area Builders Association Amber Elizondo, Executive Officer willistonbuilders.com
• 2019 Home and Garden Show planning has begun! We are looking to add more “Kids” items at the event. Kids will get the parents in the door!
Coming Together A big thank you goes out to all who joined us in Bismarck in frigid cold February for the Legendary Oyster and Chili Feed NDAB co-hosted with the ND Association of Realtors (NDAR). The room was packed with friendly faces from both sides of the aisle and from across the state. It is with great respect that we work closely with the members of the 66th assembly and we appreciate that after putting in a long day they joined us over a hot bowl of chowder and chili to catch up on the issues and hear our stance. NDAB members also participated in the Legislative Impact Day where members from the House and Senate leadership along with legislators from both of our respective industries spoke to the group about the session and answered questions. NDAB-PAC (Political Action Committee) members from each local association and the Executive Officers all met to discuss the future of NDAB-PAC and the importance of the role it has in North Dakota. We welcomed Secretary of State Al Jaeger who graciously took time to meet with our group to also discuss the session and the new online registration system that his office recently rolled out.
Some of our members got to escape the frigid temps and piling snow and headed to Vegas to participate in NAHB’s International Builders Show. NDAB co-hosted a state social along with Minnesota, Iowa and Wisconsin as a way to show appreciation for our members taking time away from their businesses to be active with NAHB and to continue their education and networking opportunities.
As you have read throughout this newsletter, the theme is really about unity and building relationships across the state. Our voice is powerful when we join and rise together. One opportunity to show our strength locally and nationally is through our Political Action Committee or NDAB-PAC. NDAB-PAC recognizes there is strength in numbers and people who show they care and are concerned about the future of the building industry make contributions to NDAB-PAC because they believe that cooperation equals strength. You alone can’t influence the Legislature or Congress on issues that can devastate your business. NDAB-PAC is your front line of defense. It monitors legislative issues and works to protect and promote the building industry. Also, a portion of your contribution is passed along to BUILD-PAC, the National Association of Home Builders’ Political Action Committee, one of the most recognized and well-respected PACs in Washington. If interested in learning more about NDAB-PAC or how to contribute, please contact our office or reach out to your local Executive Officer to learn more. Warm wishes to you and yours,
NAHB LAUNCHES PODCAST HOSTED BY CEO JERRY HOWARD AND CHIEF LOBBYIST JIM TOBIN NAHB launched Housing Developments, a new podcast co-hosted by CEO Jerry Howard and Chief Lobbyist Jim Tobin, who will provide expert analysis on the latest news in the housing industry and inside NAHB. The show will also feature special guests who will share inside knowledge and unique perspectives on key issues impacting the industry.
In the the first episode, Howard and Tobin recap the International Builders’ Show – including speeches given by HUD Secretary Dr. Ben Carson and congressional leaders – and discuss the state of Washington politics leading up to the 2020 election. Listen to the podcast at nahb.org/podcast.
March 2019 | Building Buzz
PRSRT STD U.S. Postage
PAID 2600 Gateway Ave., Ste. 1 Bismarck, ND 58503
UPCOMING BMHBA EVENTS 42nd Annual Home Show - 3/15 - 3/16/2019 Spring Parade of Homes - 4/25 - 4/28
Permit #72 Bismarck, ND 58501
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