Bismarck-Mandan Home Builders Association
BUILDING
Buzz
May 2019
NEW ‘CONNECT 10’ PROGRAM HELPS YOUNGER COMPANIES GROW page 5
VACANCY RATES RELEASED
page 7
MAY IS NATIONAL REMODELING MONTH
page 10
UPCOMING WEBINARS
page 13
BUILDING
Buzz
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
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 jeff@bismarckbuilder.com
New Members & Anniversaries New Members J&M Excavation, Inc. Ardis Glora
SECRETARY/TREASURER
2ND VICE PRESIDENT
Susie Franklin Choice Financial Phone: (701) 751-7282
Greg Meidinger Aspire Homes (701) 426-8583 greg@daretoaspirend.com
Time to Renew! Members with May Anniversaries. Renew by May 31, 2019.
Chad Moldenhauer K&L Homes Inc. Phone: (701) 258-4584 chad@k-lhomes.com
Aspire Homes, Inc. Darwin Fettig
Extreme Sales, Inc. Vern Vetter
BEK Communications Greg Meidinger
Hometown Realty, Inc. Mary Shelkey-Miller
Bianco Realty Shirley Thomas
K & L Homes, Inc. Chad Moldenhauer
Bianco Realty Kathy Feist
Leingang Home Center Mark Dettling
Bismarck Title Company Howard Malloy
Myhre Concrete Design Clayton Myhre
Border States Electric Aaron Jahner
Oaktree Realtors Darren Schmidt
Brendel's Lawn Sprinkling, Inc. Bryan Brendel
Prairie View Landscaping & Nursery, Inc Kelly Johnson
Dakota Staffing Solutions Amy Vetter
Terry Richter - State Farm Insurance Terry Richter
Diversity Homes, Inc. Jason Frank
TK Homes, Inc. Amy Sornsin
Bill Schmid Townsquare Media Phone: (701) 250-6602
bill.schmid@townsquaremedia.com
Brian Eiseman Stoneshire Builders Phone: (701) 471-6935 brian@stoneshirebuilders.com
Building Buzz | May 2019
Joe Hillerson Boulder Homes (701) 400-5554 boulderhomesnd@gmail.com
s.franklin@choicefinancialgroup.com
Marc Menge BNC National Bank Phone:(701) 250-3000 mmenge@bncbank.com
Jamie Schmidt Triton Homes Phone: (701) 223-3030 jamie.schmidt@investcore.com Greg Zenker Northern Plains Plumbing, Heating & Air Phone: (701) 222-2155 greg@northernplains.net
BIANCO REALTY SALES AWARDS Bianco Realty has announced their top 7 "REALTORS® OF THE MONTH" for April: Judy Maslowski, Darcy Fettig, Phyllis Rittenbach, Missy Moritz, Tori Mathern, Shirley Thomas and Amber Sandness. These seven REALTORS® had the highest sales totals at Bianco Realty in April 2019.
Judy Maslowski
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Lynn Klein Gate City Bank Phone: (701) 355-7633 lynn.klein@gatecitybank.com
1ST VICE PRESIDENT
Rory Anderson Verity Homes of Bismarck Phone:(701) 354-2846 rory@verityhomes.com
Nelson Builders, LLC David Nelson
PAST PRESIDENT
Missy Moritz
Tori Mathern
Darcy Fettig
Shirley Thomas
Phyllis Rittenbach
Amber Sandness
March 2019 Building Permits Data not collected for the ETA in 2015 and 2016.
SINGLE FAMILY BISMARCK PERMITS MANDAN PERMITS LINCOLN PERMITS BISMARCK ETA MONTH YEAR 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 JANUARY 0 9 1 0 10 0 0 0 1 0 0 2 0 0 2 0 FEBRUARY 3 4 5 2 0 0 0 0 1 2 6 5 0 0 0 0 21 22 14 2 9 2 2 1 11 6 4 8 2 0 3 0 MARCH 52 29 40 27 4 3 14 12 8 16 18 2 4 APRIL 31 46 29 16 5 6 26 13 11 15 17 2 5 MAY 31 43 48 24 10 2 21 20 13 13 1 6 3 JUNE 40 16 60 22 3 3 9 13 6 11 0 5 1 JULY 20 48 16 27 6 1 17 7 13 20 8 2 9 AUGUST 28 44 26 22 8 3 16 14 26 11 3 3 4 SEPTEMBER 54 14 22 15 4 7 9 29 20 9 17 10 7 OCTOBER 16 11 9 11 3 0 7 7 7 6 2 5 0 NOVEMBER 1 0 0 1 0 0 0 0 0 0 1 0 4 DECEMBER YTD TOTAL 24 35 20 4 19 0 0 2 2 1 13 8 10 15 2 0 5 0
BISMARCK SINGLE FAMILY DWELLING
K & L HOMES............................................................. 5716 CRESTED BUTTE RD K & L HOMES............................................................. 1118 COMMUNITY LOOP J.E. PROPERTIES....................................................... 4107 HERD PL K & L HOMES............................................................. 1026 RESERVE LN K & L HOMES.............................................................5816 CRESTED BUTTE RD DIVERSITY HOMES..................................................907 VOYAGER PL K & L HOMES.............................................................1011 RESERVE LN ARCHITECTURAL CONCEPTS.............................. 3212 ASPEN LN
BISMARCK ETA SINGLE FAMILY DWELLING
2018 2019 0 2 3 0 0 0 0 5 1 5 4 5 5 0 0 3 2
BURLEIGH/MORTON 2015 2016 2017 2018 2019 0 0 0 0 2 1 1 0 0 0 9 9 4 2 4 14 5 11 11 14 16 7 20 8 11 4 4 13 9 4 3 8 9 6 8 9 9 9 6 4 7 3 7 3 4 1 0 0 0 2 0 10 10 4 2 6
BURLEIGH CTY SINGLE FAMILY DWELLING
K & L HOMES............................................................. 8325 STAR LANE
MANDAN SINGLE FAMILY DWELLING
NYAZI VENTURES......................................................4605 CROWN POINT RD
MORTON CTY SINGLE FAMILY DWELLING
GOLDEN OAK HOMES..........................................2475 LABRADOR DR DAVID TERNES CONST..........................................2152 CO RD 138A VERITY HOMES.......................................................2467 LABRADOR DR
GRENDAHL DESIGN CO......................................... 6814 SELLAND LOOP
May 2019 | Building Buzz
3
President’s Letter
I
I am writing this after the Spring Parade of Homes, I would like to thank our staff, volunteers and every member who helped make this event happen. All the numbers for traffic throughout the homes are not in yet but I am hoping that everyone had good traffic and possibly made some sales to add to their spring work. I also would like to thank all the participating builders for entering a home and the associate members for their continued support of this event. We had 47 homes by 29 builders entered the Parade.
When entering a home into the Parade we always ask for a list of all the contractors who worked on your homes; I hope that each builder submits a list and I encourage you to do business with current members of the BMHBA. If you are doing business with a nonmember, ask them Jeff Sattler to become a member. Increasing our membership only makes us a Board President stronger voice when we are fighting on your behalf for affordable housing, favorable and minimal code changes, and working with local municipalities to help stop unfavorable conditions. While not always effective in stopping changes, we are actively fighting on behalf of our association.
Our association was busy in April meeting with building officials and city staff. On April 18 the BMHBA hosted our local building officials and current members to discuss the upcoming code adoptions. During this meeting we had the opportunity to vet our wants in the 2018 IRC with some of the voting officials for code adoption. In May we will be able to find out the submission for code changes that were submitted to the board for hearing. On April 21 we had our quarterly meeting with city staff to discuss upcoming policy changes in the city. The largest policy change that we are working with them on is reduced right-of-way for public streets and allowing rolled curbs in residential subdivisions.
The NDAB-PAC has new 2019 PAC pins available. The pins are $25 and all of the proceeds go to NDAB-PAC, which uses the funds to support local and state elections. The Bismarck-Mandan area has been tasked with selling 100 pins. I would love to sell out of these and then ask for more! The pins have a magnetic back for easy use and the magnet can be removed so they can be used as a golf ball marker. These pins will be available for purchase at BMHBA office, at events or let me know and I can stop by your office. Make sure to sign up for these upcoming events:
1.
Spring Awards Mixer & GMM: May 16 at the Baymont Inn & Suites
2. PAC Golf Tournament: July 11 at Prairie West Golf Course
3. Annual Sporting Clay Shoot: Aug. 1 at Capital City Sporting Clays
Regards,
Jeff Sattler, President
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Building Buzz | May 2019
New ‘Connect 10’ Program Helps Younger Companies Grow If you’re early in your career as a home builder, it can be difficult to get the boost you need to start off right. That’s why NAHB’s 20 Clubs is expanding to a broader — and younger — audience. “Connect 10” is a new program geared toward companies that may not yet be established enough to warrant a traditional membership in the NAHB 20 Clubs, yet it offers similar networking and educational benefits. Modeled as a stepping stone toward membership in a 20 Club within two to three years, Connect 10 is based largely on virtual meetings. The virtual club model was developed as a convenient and appealing platform particularly for newer company owners. The Connect 10 program officially kicked off last month in Dallas, where the initial club held its formation meeting.
“The program has essentially provided me with my own board of directors,” said Eric Visser, co-owner of Visser Construction in Anchorage, Alaska. “We’ve only just begun, but during that first meeting, we shared some of the successes and challenges we’re
seeing in our markets, and those lessons will be a great benefit to me and my business.”
The only requirement for a Connect 10 membership, aside from being an NAHB member, is that the member companies are less than 10 years old. Each club will comprise up to 10 members and meet quarterly for two, two-hour virtual meetings. In addition to a 20 Club facilitator, each club will have a dedicated mentor — a retired 20 Club veteran — to facilitate conversation and provide guidance.
“By joining a Connect 10 club early in their careers, builders can get ahead of the learning curve on how to run their business effectively, thus increasing their company’s profit margins,” said Allan Brandt, mentor for Connect 10 and founder of the NAHB 20 Clubs. “Learning early on how to avoid major pitfalls is key and can significantly increase their company’s growth potential.” To learn more about NAHB’s Connect 10 program, email Mike Sutton or call 202-266-8241.
May 2019 | Building Buzz
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CITY & COUNTY IMPORTANT STORMWATER REMINDERS FOR CONTRACTORS Each year the brave men and women who pWith construction ramping up for the season, the City of Bismarck has several important reminders forcontractors, sub‐contractors and your employees.
Please do not wash out concrete, painting, or sheetrock tools in the gutters and inlets. Cleanup will beyour responsibility. Please do not drive on, or into muddy lots. The tracking will be your responsibility.
Please remember to get your Construction Stormwater Management Permit (Erosion & SedimentPermit) for all construction sites. Please remember to install your silt fence and wattles before you start. If you have a Storm Water Pollution Prevention Plan, please follow it.
If there is a mess or incident, clean up after yourself. Do a walk‐through daily and pick up garbage and clean streets.
Above all, just remember to be a good neighbor. Projects go a lot more smoothly when homeownersknow there is someone building next door, that cares about them.
For more information about Stormwater Management contact the Stormwater Program Coordinator at 701‐355‐1740 or visit: https://www. bismarcknd.gov/1177/Stormwater‐ Management
SUMP PUMP DISCHARGE The City of Mandan reminds citizens to check their sump pumps to ensure proper functionality.
Regarding discharge of sump water, it is recommended that you drain this water away from your home on to a non-erodible surface such as concrete so that it will drain into the street if possible. If you discharge to your own yard, you may find that the water then returns to your sump.
Please do not pump water into your floor drains, toilets, or sinks in your home as that increases the volume of water to the wastewater treatment plant which may result in sewer backing up into your basement. Drainage of sump pumps into the sanitary sewer is against city ordinance.
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Building Buzz | May 2019
MARCO INVITES YOU TO AN OPEN HOUSE FOR NEW BISMARCK LOCATION Marco has scheduled an Open House gathering in their Bismarck office on Thursday, May 9. Attend the event for networking with community leaders, local businesses and Marco leadership members, live music from a local DJ, prize giveaways, and complimentary food and adult beverages. From 4-6:30 p.m., Marco will celebrate this new Bismarck location. The event will take place at the updated space: 2906 Morrison Ave, Suite 1, Bismarck ND.
Marco’s own Jonathan Warrey, Chief Operating Officer, will attend the event to network and answer questions. Area clients, chamber members, press, Bismarck-Mandan contacts and their guests are anticipated to join the Open House. “We moved because we wanted to update our office space and right size the footprint of our Bismarck location. We also wanted to serve our Bismarck-based employees in the best way and position ourselves for continued growth,” said Marco Sales Manager Dan Pflepsen. Marco’s location in Bismarck is home to a mix of IT and Copier Technology Advisors. A copier service manager also works from the new Bismarck office. Additional hiring for the office will continue growth and offer customers more technology experts to support business success. Registration to attend the open house is available online at www.marconet.com/ bismarckopenhouse.
CITY CONSIDERS NEW STREET WIDTHS Members of the HBA were invited to attend a meeting with the City of Bismarck to discuss new street widths and the use of rolled curbs.
The meeting included a presentation by City Engineer Gabe Schell that illustrated the option for a 32’ street with a 60’ right-of-way and a 28’ street with a 66’ right-of-way. The discussions were initiated to consider ways to reduce special assessment and construction costs. In addition to narrower street options, the group talked about rolled curbs. The City is open to allowing rolled curbs but wants to further define where they are allowed and under what specifications.
The association is supportive of regulations that will create lower costs for homeowners like narrower streets, which reduce pavement, plowing and maintenance costs and rolled curbs, which are less expensive to install and require less repair. The street concepts were shared at an April Commission meeting and will be in front of the commission through an ordinance revision in the coming months.
CITY & COUNTY TAKE A SEAT The Mandan City Commission will soon consider an appointment for an unexpired term on the Community Beautification Committee ending Dec. 31, 2020.
Candidates should be property owners or representatives of property owners in the City of Mandan. Representation is sought from both residents and businesses. The Community Beautification Committee helps formulate and coordinate programs, projects and policies that enhance the aesthetic appearance of the community. The committee currently meets the second Thursday of every other month at 7:30 a.m. at City Hall. A minimum 50% meeting attendance is required. Members of the business community and residents are encouraged to submit a letter summarizing their background and reasons for interest. Letters will be welcomed through May 31, 2019 or until the positions are filled. Submit letters to Program Coordinator Kari Moore, by e-mailing to kari. moore@cityofmandan.com or mailing to 205 Second Avenue NW, Mandan, ND 58554. For more information, please call 667-3478.
VACANCY RATES RELEASED Bismarck, ND
Apr-19
Jan-19
# of units reporting (built prior to Jan. '10):
3,305
3,295
# of units vacant this month:
271 (8.2%)
326 (9.9%)
# of units reporting (built post Jan. '10):
1,260
1,025
# of units vacant this month:
45 (3.6%)
58 (5.7%)
Combined Bismarck Vacancy :
6.92%
8.89%
Mandan, ND
Apr-19
Jan-19
# of units reporting (built prior to Jan. '10):
319
406
# of units vacant this month:
15 (4.7%)
221 (54.4%)
# of units reporting (built post Jan. '10):
650
1,077
# of units vacant this month:
73 (11.2%)
140 (13%)
Combined Mandan Vacancy :
9.08%
24.34%
The Bismarck-Mandan Apartment Association recently released their vacancy rate report. Thirty responses were submitted to the April survey versus 50 during the January poll.
According the respondents, the average vacancy rate for Bismarck is 6.92% in April versus 8.89% in January. In Mandan, the average April vacancy was 9.08%, which is a dramatic improvement from January’s reported rate of 24.34%
Its interesting to note that older inventory (stock constructed prior to 2010) has a higher vacancy rate than newer inventory in Bismarck, but the opposite holds true in Mandan.
MEMBERS SAVE MILLIONS
2019 NDAB PROFESSIONAL BUILDERS Donald Dabbert - Dabbert Custom Homes
Todd Williams - Todd Williams Construction
Mike Workman - Jordahl Custom Homes, Inc. Charles Bon - C'est Bon Construction, Inc.
Michael J. Bullinger - Western Productions, Inc. Jason Eid - Eid-Co Homes
Mark Spriggs - M&J Construction of Moorhead, Inc. Tyrone Leslie - Heritage Homes
Todd Halle - T&S Custom Homes, Inc. Robert Leslie - Designer Homes
Charles Zach - Zach Construction, Inc.
Robert Kochmann - Kochmann Brothers Homes, Inc. Gary Orth - Cornerstone Specialties Jayson Kuznia - Titan Homes
Hal G. Dickelman - D&U Construction, Inc.
Jason Plecity - Plecity Kowalski Construction, Inc. Don Dabbert Jr. - Dabbert Custom Homes
John Gunkelman - Dakota Construction of Fargo, Inc. Eric Berg - Eric Berg Construction, Inc.
Interested in joining or need help processing your renewal? Contact Sara Frank at sara@ ndbuild.com or 222-2401.
In 2017 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 www.nahb.org/savings
May 2019 | Building Buzz
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BMHBA NEWS FORE A GOOD TIME Register yourself or a team for the Annual PAC Golf Tournament. We’re hitting the greens at Prairie West Golf Course in Mandan for a day of friendly or competitive play.
Golf will begin with a 10 a.m. shotgun start. Registration opens a half-hour earlier. Players will receive a drive-by lunch. After the game ends, we’ll gather at the clubhouse for awards and refreshments. The PAC Golf Tournament isn’t just fun and games, your participation supports the advocacy work of the BMHBA and Bismarck-Mandan Board of Realtors. Registration is open online at bmhba.com/events.
ROOT, ROOT, ROOT FOR THE HOME TEAM The Bismarck-Mandan Home Builders Association is hosting the Spring Awards Mixer & GMM. The Events Committee is bringing the ballgame to the Baymont in Mandan on May 16.
This event will reveal the attendance stats from the Spring Parade of Homes and unveil the winners of our People’s Choice Awards. Enjoy a baseball themed event complete with stadium inspired snacks, appetizers and free beer. The event begins at 5 p.m. Pitch in and pickup a sponsorship by visiting bmhba.com/events.
SPORTING CLAY SCHEDULED FOR AUG. 1 Mark your calendar for the Annual Sporting Clay Shoot at Capital City Sporting Clays. Members are invited to spend the afternoon with each other as they test their marksmanship at ten stations. Show up with your shotgun and we’ll supply the shells, ear protection and food for after the shoot.
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
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Building Buzz | May 2019
Registration is open online at bmhba.com/events. Sign up as an individual or team. Door prizes will be dispersed at the end of the day along with the gun giveaway. Cost is $125 per member. Sponsorships are available.
EVENTS 2019 Calendar of Events May 16
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
July 11
PAC Fundraiser Golf Tournament Prairie West Golf Club
August 1
Sporting Clay Shoot 4:00 - 7:00 P.M. Capital City Sporting Clays
For the Best Prices on a Complete Insulation Package or Material, Contact …
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May 2019 | Building Buzz
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NATIONAL NEWS NATIONAL NEWS NATIONAL NEWS
2020 BUILDERS' SHOW SCHOLARSHIP APPLICATION CLOSES MAY 31 With more than 67,000 attendees and 600,000-plus-square-feet of exhibit space, the NAHB International Builders’ Show® (IBS) is the biggest event in the home building industry. That’s why it’s such a critical careerbuilding opportunity for up-and-coming NAHB members to attend.
For the fourth consecutive year, NAHB is offering opportunities for members in good standing who are 21 to 35 years old to attend IBS through the IBS Scholarship Program. Scholarship recipients will receive airfare, hotel accommodations and a full registration to maximize their experience, with access to numerous networking events, education sessions and chances to see the latest products in the industry. The IBS 2020 scholarship application is open now through May 31. Visit https://bit. ly/2DMrZOe for details.
CONSTRUCTION CONTRACTS AND LAW – LIVE ONLINE Many construction or remodeling companies are too small to hire full-time legal staff, so it's important to understand basic contract law. This course provides a step-by-step explanation of how contracts sustain positive customer and supplier relations, provide for resolution of disputes and minimize the risk of litigation. You will learn about mandatory and optional provisions, warranties and arbitration procedures. Special emphasis is given to troubleshooting contracts for detrimental positions. The course takes place over three consecutive Tuesdays, 12-2 p.m. Registration is open until 2 p.m. on Monday, May 6. Member Price: $199.00. Register online at https://bit. ly/2VMnbTe.
MAY IS NATIONAL REMODELING MONTH If you offer remodeling services, share your story. May is National Home Remodeling Month. NAHB has resources online for you to share with prospective customers. Visit https://bit. ly/2GZAw2C for articles, social media posts, videos and more.
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Building Buzz | May 2019
CRAPO’S HOUSING FINANCE REFORM PLAN MOVES THE DEBATE FORWARD NAHB commended Senate Banking Committee Chairman Mike Crapo for developing his housing finance reform proposal and believes it will serve as an important marker to move the debate forward in Congress. Testifying on this issue before the Senate Banking Committee, NAHB Chairman Greg Ugalde said that an effective housing finance system must address liquidity as well as affordability.
“An essential component of any strategy for housing affordability must be advancing comprehensive housing finance reform which will ensure the capital and liquidity necessary for housing developers, builders, lenders and consumers to access stable financing,” said Ugalde. NAHB believes that Chairman Crapo has put forth a thoughtful outline for housing finance reform that includes essential elements that would achieve these aims.
Having Fannie Mae and Freddie Mac continue in conservatorship with no end in sight contributes to uncertainty regarding mortgage availability and affordability. “In particular, we appreciate the chairman’s continued support for an explicit government backstop for a key portion of the conventional mortgage market,” said Ugalde. “We firmly believe this is critical to ensuring the ongoing availability of the 30year, fixed-rate mortgage, which is essential to affordable homeownership, as well as preserving support for the financing of affordable multifamily properties.” With Fannie Mae and Freddie Mac languishing in conservatorship for the past decade, NAHB has been a strong proponent of comprehensive housing finance reform.
“Having Fannie Mae and Freddie Mac continue in conservatorship with no end in sight contributes to uncertainty regarding mortgage availability and affordability and is therefore both undesirable and unsustainable,” said Ugalde. Given the significant role that housing plays in the economy, Ugalde urged lawmakers to take a long-term, holistic approach to housing finance system reform.
“NAHB also urges Congress to carefully consider the differences between the singlefamily and multifamily market and not apply solutions to one piece of the market that are not appropriate for the other,” he said.
FED ACTION BODES WELL FOR MORTGAGE RATES
The Federal Reserve’s decision to hold short-term interest rates steady, along with two other key announcements by the central bank, should reduce upward pressure on mortgage interest rates for the foreseeable future. In signs that the Fed is adopting a more dovish monetary stance, it said that it envisions no rate increases in 2019 and just a single rate hike in 2020. As NAHB Chief Economist Robert Dietz observed in this Eye on Housing blog post, “this is a remarkable downward revision for the Fed’s outlook, as the December 2018 projections called for the fed funds rate to be roughly 50 basis points higher than the current outlook over the course of 2019 to 2021.”
The second signal was an announcement that the Fed will slow the process of balance sheet reduction or quantitative tightening. The combined announcements mean that the Fed is moving toward a less aggressive stance due to slowing global growth and a somewhat weaker outlook for the U.S. economy.
As we enter the crucial spring home buying season, these actions should bode well for housing demand. View more analysis from Dietz at https://bit.ly/2UjLl71.
Total housing starts fell 8.7% in February to a seasonally adjusted annual rate of 1.16 million units from an upwardly revised reading in January, 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 February reading of 1.16 million is the number of housing units builders would begin if they kept this pace for the next 12 months. Within this overall number, singlefamily starts fell 17% to 805,000 units following an unusually high reading of 970,000 units in January. Meanwhile, the multifamily sector, which includes apartment buildings and condos, increased 17.8% to 357,000.
In the latest installment of his monthly video series, NAHB Chairman Greg Ugalde outlines two recent examples of NAHB working hard for its members: his testimony on Capitol Hill on GSE reform, and the NAHB Housing Portal which can save members thousands in survey research to help their businesses.
This monthly video series will highlight how the association is addressing key issues impacting members and delivering results that make a difference to their businesses’ bottom lines. View all of the videos in the series at nahb. org/chairmans-update.
“The February starts figures are somewhat in line with flat builder expectations and serve as a cautionary note that affordability factors continue to affect the marketplace,” said NAHB Chairman Greg Ugalde. “Excessive regulations, a scarcity of buildable lots, persistent labor shortages and tariffs on lumber and other key building materials are having a negative effect on housing affordability.”
Regionally, combined single-family and multifamily starts in February fell 29.5% in the Northeast, 18.9% in the West and 6.8% in the South. Starts posted a 26.8% increase in the Midwest.
Overall permits, which are often a harbinger of future housing production, edged 1.6% lower in February to 1.30 million units. Single-family permits held steady at 821,000, while multifamily permits fell 4.2% to 475,000. Looking at regional permit data, permits rose 1.5% in the Northeast, 4% in the South and 1.1% in the Midwest. Permits fell 15% in the West.
www.bncbank.com
Member FDIC
STATEMENT OF NAHB 2020 THIRD VICE CHAIR CANDIDATE ALICIA HUEY
NATIONAL NEWS
“The overall lower starts numbers are somewhat deceiving given the revised singlefamily starts figure in January was at a post-recession high,” said Danushka NanayakkaraSkillington, NAHB Assistant Vice President for Forecasting and Analysis. “Absent the surge last month, the drop in single-family production in February is not as huge as it appears. Still, builders continue to remain cautious due to affordability concerns, as illustrated by the flat permits data.”
NAHB CHAIRMAN UPDATES MEMBERS ON KEY PRIORITIES
NATIONAL NEWS
FEBRUARY HOUSING STARTS DOWN AFTER SINGLE-FAMILY SURGE IN JANUARY
The NAHB Nominations Committee has certified one candidate for 2020 Third Vice Chairman: Alicia Huey of Birmingham, Ala., who is a member of the Association of Home Builders of Greater Birmingham. Huey will address NAHB members at the Spring Leadership Meetings in Washington, D.C. Here is her statement.
Whether Lincoln Logs or a custom home, Alicia was drawn to building because she enjoys the creative process and producing a beautiful home. Her attention to detail makes AGH Homes stand out among builders and contributes to company awards. Alicia believes in giving back. She has volunteered with Habitat for Humanity for a decade and was honored as the 2011 Volunteer of the Year. She is a past President of the Association of Home Builders of Greater Birmingham, and an active member of the HBA of Alabama’s Executive Board for many years. Alicia loves building connections, whether putting a family in a Habitat home, working with clients to create a beautiful, livable home or networking to raise money for BUILD-PAC.
Active in NAHB, Alicia served as Chair of Professional Women in Building, the Membership committee, and BUILD-PAC. She has served on several committees including State & Local Government Affairs, Public Affairs and Association Communications, and the Executive Board. Alicia lives in Birmingham, Ala., with her husband Don, who is active in the HBA through his company Magic City Title Insurance. In her free time, she enjoys running, traveling, wakeboarding, surfing and cooking. Alicia is dedicated to building a stronger association that values mentorship, networking and giving back.
May 2019 | Building Buzz
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NATIONAL NEWS
Alicia Huey is President of AGH Homes, Inc., a custom home building company she started 18 years ago. As a female builder, people ask if she played with dolls growing up. She simply replies, “Of course, but I also played with Lincoln Logs.”
NATIONAL NEWS
SUPPORT CLEAN WATER AND CLEAR REGULATIONS The proposed new Waters of the United States (WOTUS) rule is an important victory for our members, but we need your help now. We need every builder, affiliate and associate to take action by contacting The Environmental Protection Agency and U.S. Army Corps of Engineers today and tell them NAHB supports this new rule. This revised rule will save time and money for home builders that rely on a predictable permitting process time. It will also protect our nation's waterways. Please send individual comments of support before April 15 and let regulators know that you support the new 2018 proposed definition on Waters of the U.S.
NATIONAL NEWS
Visit nahb.org/wotus for additional information on Waters of the U.S. Questions?
NAFTA PANEL ACCEPTS NAHB AMICUS BRIEF ON SOFTWOOD LUMBER DISPUTE In a positive development regarding the U.S.-Canada softwood lumber trade dispute, the NAFTA Binational Panel on March 25 granted NAHB’s motion to participate as an amicus (friend) in support of Canada’s challenge of the International Trade Commission’s (ITC) countervailing and anti-dumping duties on Canadian lumber imports into the United States.
The combined duties average more than 20% and increase volatility in the lumber market and harm housing affordability. The ITC and domestic lumber producers had filed objections to NAHB’s motion, but the NAFTA panel accepted NAHB’s memorandum supporting Canada’s challenge.
Moreover, with respect to the usefulness of NAHB’s information, the NAFTA panel rejected arguments from the ITC and U.S. lumber firms that counsel to the other parties were perfectly capable of incorporating NAHB’s information and perspective into their own arguments. Specifically, the NAFTA panel stated: “NAHB’s perspective is that of a coalition of purchasers that account for 80% of new home construction in the United States, the primary demand driver in the industry. This perspective is unique from that of the producers with respect to the issue of substitutability, where NAHB focuses its attention, and reflects NAHB’s specialized knowledge of the facts on the record.”
In its amicus brief, NAHB stressed that builders have specific preferences for Douglas Fir and Spruce-Pine-Fir (SPF) over Southern Yellow Pine (SYP) in certain instances, and specifically when framing homes. SYP is not nearly as suitable for wall framing because of its tendency to twist and warp, which causes the drywall to buckle. Moreover, there is not much substitution of species because builders use what works best for them based on specific applications.
In an official statement, NAHB Chairman Greg Ugalde said: “We welcome the opportunity to provide this unique home building perspective to this issue. It is our hope it will serve as an impetus for the United States and Canada to hammer out a long-term solution to this problem that will satisfy all sides — including domestic industries and consumers — that rely on softwood lumber for their economic well-being.”
NATIONAL NEWS
NAHB, REAL ESTATE GROUPS URGE CONGRESS TO OPPOSE CARRIED INTEREST BILL
UC TS D O R R P UPPORT U O Y OT E ND S PROM RVICES A UILDING E! B IM SE AND E HOME E SAME T TH AT TH STRY U com D N I hba. @bm t. rac y -2400 t t c a g spo C o n t o r 2 2 2 ve r t i s i n ad this m i a to c l
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NAHB and more than a dozen other real estate industry groups have sent a joint letter to Congress urging lawmakers to reject the Carried Interest Fairness Act (H.R. 1735). “This misguided legislation would result in a huge tax increase on countless Americans who use partnerships in businesses of all types and sizes,” the letter stated. “It would discourage individuals from pursuing their business vision, encourage debt rather than equity financing, tax sweat equity invested in businesses and slow economic growth. These results would be particularly harmful to the nearly 8 million partners in U.S. real estate partnerships.”
H.R. 1735 would require carried interest to be classified as ordinary income rather than a capital gain. A carried (or promoted) interest is a profits interest in a business deal that is larger as a share of the total return than the share of the initial equity investment. Under present law, if the income paid out as the carry is a capital gain, then the carry is taxed at capital gains tax rates (in general, up to 23.8%). The false narrative surrounding the carried interest issue is that it targets only a handful of hedge fund billionaires and Wall Street executives. The carried interest legislation is far broader and would apply to real estate partnerships of all sizes – from two friends owning and leasing a townhome to a large private real estate fund with institutional investors. “Taxing carried interest at ordinary income rates would discourage the risk taking that drives job creation and economic growth,” the letter to lawmakers stated. “In short, H.R. 1735 would make it more expensive to build or improve real estate and infrastructure, including workforce housing, assisted living communities, and industrial properties, to name just a few. We urge you to reject the misnamed Carried Interest Fairness Act.”
NAHB commended President Trump for putting housing finance reform at the top of the national agenda and signing a memorandum directing relevant agencies to develop a plan that will help more Americans achieve the dream of homeownership. NAHB has been working diligently on this issue in recent months, and thanks to our efforts both the White House and Congress are making housing finance reform a top policy agenda.
“We applaud the president for taking an active leadership role to revamp the nation’s housing finance system,” said NAHB Chairman Greg Ugalde. “NAHB is especially pleased that his memorandum specifically cites the importance of preserving the 30-year, fixedrate mortgage, which has enabled millions of American families to build wealth and financial security through homeownership.”
“The right reforms are critical to maintain a healthy housing market and ensure that single-family and multifamily housing credit for sale and rental properties remains readily available,” said Ugalde.
The next step is for Congress to move this process forward to revamp the housing finance system in a way that won’t interrupt the flow of credit.
“NAHB looks forward to working with the White House and Democratic and Republican leaders in Congress to pass bipartisan housing finance legislation that provide certainty to the marketplace while maintaining the proper level of government support for housing in all economic and financial market conditions.”
The right reforms are critical to maintain a healthy housing market.
On the March 29 episode of Housing Developments, hosts CEO Jerry Howard and Chief Lobbyist Jim Tobin discuss new affordable housing legislation across the country, housing finance reform, the United States-MexicoCanada Agreement (USMCA), and other key issues currently affecting the industry.
Additionally, White House Deputy Communications Director Jessica Ditto delivers breaking news about the Administration’s plan for housing finance reform on air to Howard and Tobin, and discusses the Administration’s efforts to address labor shortages, trade agreements and other critical topics.
Tune in at nahb.org/podcast, to hear what’s going on in housing news around the country, as well as Tobin’s World Series predictions. Also available on iTunes, Spotify, Soundcloud, Stitcher and other podcast platforms.
UPCOMING WEBINARS
The following webinars are available to members through NAHB.org. The BMHBA also hosts webinar attendance lunch events that you can register for online at bmhba.com/events. • Cybersecurity Risks and Best Practices for Construction Professionals Thursday, May 16, 1-2 p.m. • Partner with Real Estate Brokers: Increase New Home Sales and Sell Against Used Houses Thursday, May 23, 2019 1-2 p.m. • Capturing Competitive Advantage Thursday, May 30, 2019 1-2 p.m.
NATIONAL NEWS
The president’s announcement follows two days of hearings before the Senate Banking Committee earlier this week on Sen. Mike Crapo’s proposal to overhaul the housing finance system. Ugalde testified on this issue yesterday before the panel and these developments should build momentum for the administration and Congress to work together to achieve comprehensive reform that improves the nation’s housing finance system.
NEW PODCAST LANDS WHITE HOUSE INTERVIEW
NATIONAL NEWS
NAHB COMMENDS TRUMP MEMORANDUM ON HOUSING FINANCE REFORM
• Managing Business Growth for Profitability and Sanity Wednesday, June 19, 2019 1-2 p.m.
May 2019 | Building Buzz
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NATIONAL NEWS
Each webinar counts for one hour of continuing education credit toward NAHB designations. When you register for a live webinar, you have access to the webinar replay for 12 months from the date of purchase. All replays are available approximately 7-10 business days after the live event.
Greetings!
With Spring finally on the horizon it is time to start looking ahead to longer warmer days. This is a great time to start planning those projects you have been holding off on during the winter months. One way to add value to your home's energy efficient updates. Just making some small changes can really make a long term impact on your energy costs and be a advantage when going to sell your home. Here are some easy updates you can do yourself:
· Upgrade your doors and windows - By looking for Energy Star rated doors and windows or adding storm windows to your existing windows your home can become noticeably more comfortable and increase your home's efficiency by 25-50 percent. · Checking for air leaks - Warm air leaking into places like your floors, walls, ceilings and fireplaces can be sealed by simply running a bead of caulk or adding some weather stripping. · Installing programmable thermostats - New programmable thermostats are a great way to to regulate the heating and cooling of your home automatically adjusting the temperature of your home at different times of day and some can even be controlled when you are away from you home allowing you to remotely adjust the temperature while you are away. · Upgrading appliances and water heaters - Putting in energy star appliances can save you quite a bit with washer and dryers as well as water heaters topping the list of power hogs at accounting for approximately 12% of your utility bill.
Implementing this list in the building of your new home or making a few changes to your current home can save money today and you will see a return when you do sell your home. Finally, for to our members as your are out this spring and summer bidding jobs and building homes remember to "Make the Ask". When you meet a new business owners and potential new members make sure to tell them about your local Builders Association and the benefits of having the local, state and national associations working to support the building industry.
Bob Horab
2019 NDAB President
Around the State FARGO •
The HBA of F-M is gearing up for a summer full of fun member events including the Remodelers Council Picnic May 29, Parade Picnic June 13, Muddy Boots Picnic July 31 and two Golf Outings July 9 and August 20.
• The HBA of F-M's Herdina Academy for the Construction Trades will run June 3-7 and 10-14. It is a two-week hands-on summer "camp" for high school students to learn about the industry.
Applications are available at dickinsonareabuilders.com and the deadline to submit is May 18th. • DABA is looking forward to another great golf scramble, August 8th at the Heart River Golf Course.
• Mark your calendar for the 4th Annual Parade of Homes, September 14th & 15th.
MINOT
• The HBA continues working with NDAB to monitor bills related to funding the F-M Area Diversion and developing workforce academies within the state.
• Homes and Hops is coming up on May 17th in downtown Minot! The 40 Below crew is working on final details and registration will open in mid-April.
•
• Spend an evening on the range with the Minot Association of Builders! The Guns 'n' Roses Shootout will happen on August 27th at the Minot Gun Club!
GRAND FORKS
Forx Builders 26th Annual Sporting Clay Shoot is Tuesday, May 21st. Registration is available at forxbuilders.com and includes 2 boxes of shells, ear plugs and a chance to win prizes! Dinner will be provided; catered by Italian Moon.
• Our next Builders After Hours will be hosted by Tim Shea's Nursery on Thursday July 11th. • Grand Forks Country Club will be hosting the 26th Annual Golf Outing on September 12th. More information will be available in the coming months.
DICKINSON
• The Irene Schafer Builders Association Scholarship is open.
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Building Buzz | May 2019
• Birdie with the Builders is taking place on July 29th at the Minot Country Club. Registration will open in early May for the MAB's biggest summer event! • The 2019 Parade of Homes is September 14th! Builders are working on houses to show the public from 10 AM to 4 PM that Saturday.
WILLISTON •
We have moved! Come see us at: Western Area Builders Association 313 Main Street Suite 305 Williston, ND 58801
Trading one Capitol View for Another
The ND Legislature has officially gaveled out for their 66th Legislative Session! In total, the NDAB lobbying team tracked 65 bills. We thank each of you that took the time to follow through on callto-action requests, took time to visit at the capital and testify or build on relationships with your legislators. The success of our efforts really lands on your efforts and we appreciate you! I think it is also appropriate at this time to toast Sara, NDAB Communications and Government Affairs Director, on her hard work throughout this session. This was Sara's first year lobbying and she did an excellent job representing the 2,000 members across the state. We hope you enjoyed and appreciated and the bi-weekly updates as well. Now that session is wrapped up, here are some points of interest:
· During this session legislature acted on 984 bills in 76 days, many of them with numerous votes on different versions. · In the end 635 bills passed while 293 failed.
· The NDABGA voted in support of 27 and of those 16 passed.
· The NDABGA voted to oppose 6 bills and of those 3 ended up getting defeated.
· Of the bills that ended in a split vote, request for watch or a neutral stance we had 32 bills.
June brings us to visit another important Capitol! NAHB will be holding their mid-year meetings June 4-8 in Washington, DC. These meetings provide opportunities to network with fellow members from across the nation, education and of course tours of our National Capital! During our time in DC, we will schedule meetings with our national delegation. Senator Hoeven, Senator Cramer and Congressman Armstrong are all receiving requests to meet with our membership to discuss various issues impacting our members from across North Dakota. With their busy schedules, we work hard at scheduling times with them on the afternoon of Wednesday, June 5 and appreciate the time allowed for our members to have their voices be heard. We hope you are available to join us and encourage you to reach out to your local Executive Officer to learn more and to get registered. Keeping June a busy month, NDAB will be hosting our state summer social and third annual corn hole tournament in Dickinson along with our NDAB-PAC and NDAB Board of Directors meeting. These events will be on June 26-27 with more details to come. Sara has already visited the site of the social and we are excited for a beautiful new venue and a night of good company! If interested in learning more or if you would like to hear more about our sponsorship opportunities, please call 701-222-2401 or email sara@ ndbuild.com.Take care,
Kim Schneider
www.C21Morrison.com
CENTURY 21 Morrison Realty Call us today at 701.223.6654
NDAB Chief Executive Officer
May 2019 | Building Buzz
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UPCOMING BMHBA EVENTS Spring Awards Mixer & GMM - 5/16 - 5 - 8 P.M. Sporting Clay Shoot - 8/1
Permit #72 Bismarck, ND 58501
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