May 2014 Building Buzz

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Bismarck-Mandan Home Builders Association

Building Buzz Building the Future of Bismarck-Mandan Since 1958.

May 2014 Permit Report: March 2014 Page 2 President’s Letter Page 3 Member Highlight: Flickertail Construction, LLC Page 5 Members Save $17K Page 6 Upcoming Events: Spring GMM & New Member BBQ Page 8 May 14 Building Officials & Membership Meeting Page 9 National News Page 12-13 NDAB News Pages 14-15

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BMHBA Building Buzz

May 2014

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

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

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

YTD 2014

YTD 2013

New Residential

Single Family Detached

Single Family Attached Duplex

3 or 4 Unit

5+ Unit Residential Garages New Commercial Alter Public

46/$18.0M 24/$4.91M 19/$2.89M 0/$0M 0/$0M 3/$10.2M 9/$.099M 15/$1.26M 2/$.12M

69/$12.05M 45/$8.21M 23/$3.64M 0/$0M 0/$0M 1/$.200M 3/$.037M 10/$5.64M 1/$.006M

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

YTD 2014

New Residential

Single Family

Two Family Condos Apartments Remodel and Additions New Commercial Alter Commercial

5/$1.01M 5/$1.01M 0/$0M 0/$0M 0/$0M 38/$5.37M 0/$0M 9/$5.60M

YTD 2013

30/$12.47M 28/$7.48M 0/$0M 0/$0M 2/$4.99M 43/$.899M 2/$.315M 6/$.216M

May 2014

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BMHBA Building Buzz

A Word from Our President April showers bring May snow? I don’t know about you, but I’m calling out Mother Nature to give her a piece of my mind. Snow aside, this past month has been a busy one for our association. We started out by celebrating April as New Homes Month. Hopefully you had the chance to hear about the impact of our industry along with new home facts during our radio show on SuperTalk 1270. If you missed the show, take Vance Vetter a peek at our Facebook Board President page (www.facebook.com/ bmhba) where we’ve been posting regular bits about home building. This month, we’ll join the NAHB in promoting National Remodeling Month.

Thank you to those who attended one of two panel discussions on Storm Water Management. The association led a discussion with the City of Bismarck and State of North Dakota storm water reps on April 10 and 11.

The discussion was lively and the dual commentary helped builders get a clearer picture of the expectations for storm water management.

April also ushered in the first weekend of our Annual Spring Parade of Homes. Despite the lack of official numbers, I’m confident in saying that this will be the biggest parade yet. We had builders run out of tickets after the first day and office staff was busy all weekend delivering extra tickets, booties and booklets. The parade continues the first weekend of May. We’ll reveal the final figures and the parade winners of People’s and

Judges’ Choice Awards at our Spring GMM on Thursday, May 15. Get your tickets online now at www.bmhba. com/events.

This month the association will be focusing its attention on the June primary elections. The Government Affairs Committee is polling the candidates to gauge their support of our industry and will be providing campaign assistance to ensure that those who align with our needs are elected. We encourage all members to get active in local elections by: (1) researching the candidates; (2) getting out to vote; and (3) contributing the BUILD-PAC. Your contributions help our office, the state association and national association ensure effective legislation is enacted and supportive candidates elected.

Please mark your calendars for a few upcoming events.

May 14 – Panel Discussion with Area Building Officials May 15 – Spring General Membership Meeting May 29 – Forklift Operator Training May 29 – CPR/AED/First Aid Training May 29 – New Member BBQ Register for those events and more at www.bmhba. com/events, call 222-2400 or email info@bmhba.com.

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BMHBA Building Buzz

May 2014 New Members E Homes, Inc. | Travis Welle

Phone: 701-400-4105 Home Builder (Custom), Home Builder (Multi-Family)

First Dakota Title | Denese McLeish

Phone: 701-223-8520

Website: thetitleresourcenetwork.com Titles/Closings

Kinnebrew Contracting, LLC | Mark Kinnebrew

Phone: 701-214-0343 General Contractor, Remodeling, Carpentry, Home Builder

Tradesmen International | Ross Frohlich

Phone: 701-541-3326 Website: tradesmeninternational.com Employment Services

May 2014 Anniversaries

America’s Homes Loans | Darin Ketterling Website: americashomeloans.com

B & B Roofing | Lonnie Barth Join Date: 2006

BEK Communications | Nichole Moser Website: bektel.com

Join Date: 2008

Bianco Realty | Kathy Feist

Website: biancorealty.com

Join Date: 1987

Bismarck Title Co. | Howard Malloy

Website: bismarcktitle.com

Join Date: 1987

Brendel’s Lawn Sprinkling | Bryan Brendel

Website: brendelslawnsprinkling.com

Join Date: 1985

Carpet World | Brian Dauenhauer

Website: carpetworldbismarck.com

Join Date: 1981

Dakota Staffing Solutions | Amy Azure

Website: dakotastaffingsolutions.com

Join Date: 2009

Dakota Wall Systems | Phil Birnbaum Website: dakotawall.com

Join Date: 2002

Edgewood Development Group, LLC | Dave Heilman Website: edgewoodbismarck.com

Join Date: 2008

Extreme Sales, Inc. | Vern Vetter

Website: extremesales.biz

Join Date: 2009

Century 21 Morrison Realty - Greg Larson | Greg Larson Join Date: 2013

Herner Homes, LLC | Dave Herner Join Date: 2006

Hunter Hardwood Floors | Greg Schettler

Website: hunterhardwoodfloors.com

Join Date: 2013

K & L Homes, Inc. | Chad Moldenhauer Website: k-lhomes.com

Join Date: 1987

Leingang Home Center | Jan Frohlich Website: leingang.com

Join Date: 1979

Mortgagemax, Inc. | Jeff Stamaris Join Date: 2008

Myhre Concrete Design | Clayton Myhre

Website: myhreconcrete.com

Join Date: 2009

Oaktree Realtors | Jack Neumann

Website: oaktree-realtors.com

Join Date: 2006

Prairie View Landscaping & Nursery, Inc. | Kelly Johnson Join Date: 2009

Ramada Bismarck Hotel | Laurie Schumacker

Website: ramadabismarckhotel.com

Join Date: 1987

TK Homes, Inc. | Tom Kunz, Jesse Sornsin, Kristina Schwab Join Date: 2009

May 2014

2014 Board of Directors PRESIDENT Vance Vetter Vance Vetter Homes Phone: (701) 751-8218

PAST PRESIDENT Eric Brenden Northwest Contracting Phone: (701) 255-7727

SECRETARY/TREASURER Lynn Klein Gate City Bank Phone: (701) 355-7633

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

1ST VICE PRESIDENT Drew Knutson Knutson Homes, Inc. Phone: (701) 258-3464

Nathan Jones Tollberg Homes Phone: (763) 205-2037 Scott Moran Hallmark Homes Phone: (701) 471-8796 Bill Schmid Townsquare Media Phone: (701) 250-6602

2ND VICE PRESIDENT Greg Zenker Ferguson Enterprises Phone: (701) 663-2446 Chad Moldenhauer K & L Homes, Inc. Phone: (701) 258-4584 Shannon Reichenberg Diversity Homes Phone: (701) 220-8177 C.J. Schorsch Fleck’s Furniture & Appliance Phone: (701) 323-0891

BMHBA Building Buzz

May 2014

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Member Higlight: Flickertail Construction, LLC Company Name: Flickertail Construction, LLC Contact Name: Grant Miller Job Title: Owner/Carpenter

Phone Number: 701-426-4734 Website: Find us on Facebook!

When was your company founded? Where and by whom? Flickertail Construction LLC (FTC) was founded in the Spring of 2010 upon completing Bismarck State College’s program of Residential Carpentry. Grant Miller founded the company.

What type of products/services does your company provide? FTC does its best work in home framing, interior trim work, decks, windows, doors, and basically anything that involves carpentry skills.

Which products/services would you say are “bestsellers”? FTC ‘s owner has been home framing in the Bis/ Man Metro area since graduating in 2010. Also building high-end zero maintenance decks for customers all over ND. What sets your company apart from the competition?

FTC’s owner Grant Miller was born, raised, and lived in North Dakota his whole life. Grant knows a lot of the locals in and around the Bis/Man area; also, Grant knows what the native and non-native North Dakotan’s expect for high-end home building/carpentry work.

What is your company’s mission statement (if you have one)? Flickertail Construction builds homes, lives, and communities that will last for generations. We value hard work and work hard to build efficient, and comfortable homes that homeowners will come to expect.

Is there anything new or interesting happening in your company or industry right now? The home building industry is exploding because of people coming to work in North Dakota, and hopefully we can keep these people around for the long run. With more people, there needs to be more affordable homes built, and this brings plenty of opportunity in the state for people to be entrepreneurs running their own businesses.

How many employees does your company employ?

FTC is looking to hire! FTC is looking for long term employees that have skills to frame many homes throughout the year. I would like BSC Carpentry students to work with, show them their potential, and how far the home building field can take them.

What do you enjoy most about your job? I enjoy seeing the process of a home built from the ground up, this is what I’ve wanted to do since I graduated from high school.

What is the biggest challenge facing your company/ industry right now? How are you dealing with it?

A big challenge is finding high skilled employees and paying competitive wages. Everyone knows the oil field is a couple hours away, and it pays big money. However, oil field is a lot of time away from family, and FTC is a locally based company that is home 90% of the time, and rewards hard work!

If you had only one sentence to sell your company to a potential customer/client, what would you say? Check out Flickertail Constructions on Facebook, Like, and view photos of past work!

Anything else you would like to include? FTC is a believer in the BMHBA. Grant Miller is a beneficiary of the scholarship that is awarded to the BSC carpentry program every fall. This is a perfect example of seeing scholarship money turn full circle; student, carpenter, owner/ member.

Don’t Miss These Upcoming Events!

May 14: Building Officials & Membership Meeting May 15: BMHBA Board Meeting & Spring General Membership Meeting

May 21: Membership Committee Meeting May 29: New Member BBQ May 29: Forklift Operator & CPR/AED/FA Training

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BMHBA Building Buzz

May 2014

Members Save $17K

BMHBA members participating in the Member Rebate Program saved $17,149.50 in 2013. There were just six members who submitted rebate requests in 2013. The average savings came to $2858.25, but there were broad swings from the smallest to largest claim.

Participation in the Member Rebate Program is simple and the savings can be substantial. One builder reclaimed $7,791.50 and another recaptured $6,334.00. Active enrollment in the program not only nets members money back, but it also provides the

association with non-dues revenue. At the end of each year, the Member Rebate Program kicks back a contribution to our local. In 2013, the BMHBA received more than $2400.

To enroll in the Member Rebate Program, simply visit www.hbarebates.com.

Rebate Deadline is May 23

The deadline for complete your first quarter rebate claim is May 23. This deadline is for any home, remodeling project, or multi-family unit completed between January and March, 2014. Rebate claim forms may be found at www.HBArebates.com/claimform.html

Did You Know...

Did you know that "The New Normal: Retooling Your Business for Bottom Line Success" webinars are free to NAHB members?

There are two remaining webinars in the six-webinar series, which provide tools and information to help NAHB members thrive in today's new home building and remodeling market.

Based on the hugely successful Master Sessions featured at the NAHB International Builders’ Show earlier this year, each webinar is led by an acknowledged expert in the field.

The upcoming webinars include: • May 22: Securing Capital for Your Company's Growth • May 29: Solving the Supplier/Trade Shortage: New Rules, New Thinking Registration and additional information are available at www.nahb.org/product_group.aspx?groupID=1036.

Entries Open for Apartment and Condo Awards Entries are now open for NAHB's 2014 Pillars of the Industry Awards competition. The awards highlight excellence in apartment and condominium design and development, innovative financing strategies and superior property management and marketing. Since its inception in 1990, the Pillars Awards program has earned a reputation as the most prestigious awards program of its kind.

Multifamily owners and developers, property managers, architects, interior designers and other multifamily industry professionals are invited to enter the competition. All applications must be submitted online by June 16 at nahb.org/pillarsawards. Complete details, including eligibility requirements, categories and deadlines, are also available at that web address. Both NAHB members and non-members are eligible to enter.

May 2014

BMHBA Building Buzz

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How Does Your Business Measure Up? Nobody likes to operate in a vacuum, but in a competitive industry like home building, it can be very difficult to benchmark your business.

So how can you tell how your business measures up?

The Cost of Doing Business Study, 2014 Edition, which is available only from NAHB's BuilderBooks.com has the answers. NAHB’s economics and business management experts collected and analyzed financial statements from builders across the country so you can see how you measure up, whether you build two homes a year or 2,000.

This one-of-a-kind resource discusses financial performance according to builder type and size, as well as industry-wide averages using these key indicators: • Gross margin

• Net profit • Cost of sales • Operating expenses • Financial ratios The Cost of Doing Business Study has the data, analyses, and guidance you need to boost profitability, increase efficiency, set realistic budget targets, and improve your business practices. In addition, the book includes 35 proven cost-cutting tips to reduce direct construction costs.

The publication is available as an eBook for $89.99 retail or $55.99 for NAHB members. A limited number of print copies are available for purchase while supplies last ($149.95 retail/$79.95 NAHB members). Call 800-2232665.

The IRS Small Business/Self-Employed Division is announcing two specially designed webinars for small business owners. Both events will air during National Small Business Week on May 13 and 15.

Learn about: • What to do when you hire and pay independent contractors, and • How best to avoid common mistakes small business owners may make.

• IRS representatives will also be available for a question and answer session directly after each presentation.

We may not have a crystal ball but we do have data, data and more data to predict the direction of the remodeling market.

As the residential remodeling market recovers, NAHB Chief Economist Dave Crowe and Kermit Baker, project director of the Remodeling Futures and Harvard's Joint Center for Housing, discuss the potential for continued growth and highlight upcoming trends in a May 14 webinar from 1-2 p.m.

The rebound in home prices is driving remodeling business and this webinar is a can’t-miss educational opportunity for members who wish to be prepared for the next ride on the rollercoaster. Register for the webinar online at www.nahb.org. Search “Webinar Wednesdays” in the search box to find this and other events.

IRS Small Business Week Webinars

Each event will air at 1:00 p.m. (CT) Event details: Date: Tuesday, May 13, 2014 Topic: Payments to Independent Contractors Register: IRS Webinar Registration website: www.visualwebcaster.com/event.asp?id=98667 Date: Thursday, May 15, 2014 Topic: Avoiding the Biggest Tax Mistakes Register: IRS Webinar Registration website: www.visualwebcaster.com/event.asp?id=98603

Interested but can’t attend? These webinars will be placed online for later viewing on the IRS Video Portal www.irsvideos.gov approximately three weeks after the date of the event.

Residential Remodeling Webinar: What’s Next in a Rollercoaster Market

DIRECTORY EDITS

The 2014 Membership Directory is out and should have arrived in your mailboxes.

While the association works to ensure correct content, we have a few corrections we’d like you to note in your copy. The correct information is bold and italicized below.

Page 23: Bismarck Patio Design, LLC — Gene Messmer Page 22: Associated Pool Builders — Don Volk

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BMHBA Building Buzz

May 2014

Don’t Miss These Upcoming Events!

Calling All New Members!

Spring General New Member BBQ Membership Meeting is May 29 Mark your calendar now and join us for the Spring

We would like to welcome all new members to the association! As a thank you, all members who've joined the BMHBA in 2013 and 2014 are invited to a New Member BBQ on May 29. We’ll host new members with old fashioned hospitality and old fashioned BBQ on the BMHBA patio.

Register online at www.bmhba.com/events by Tuesday, May 27 or call 222-2400. Thank you Ferguson Enterprises for sponsoring this annual event.

SPONSORED BY

Ferguson Enterprises

General Membership Meeting! The Spring GMM, which is Thursday, May 15 at the Seven Seas Hotel & Waterpark in Mandan, features a social hour starting at 5:30 p.m. followed by dinner at 6:15.

The evening includes: • Presentation of the Spring Parade of Homes Awards • Remarks from NDAB PAC Chair Don Dappert • Remarks from BMBHA President & Executive Officer • 50/50 Raffle Benefiting BUILD-PAC The cost to attend is $20 per person. Register online at www.bmhba.com/events or call 222-2400

by Tuesday, May 13.

Thank you to our sponsors listed below. Additional sponsorships are available. Contact the BMHBA office at 222-2400 or email terri@bmhba.com.

SPONSORED BY

One Source Lighting, D&M Industries, Acme Tools, Haider Glass Specialties, American Bank Center & Front Street Millwork & Lumber We’ve added text messaging to our communication tool belt!

To receive text messages from the association, text MEMBERS to 51660.

You may receive up to 4 messages per week. Message and data rates may apply when sending and receiving text messages. Messages sent from automated system.

Consent not required to purchase goods and services.

Text STOP to 51660 to opt-out. Text HELP to 51660 for assistance or call 800-211-2001. To view our Privacy Policy visit www.sentextsolutions.com/privacypolicy.

BMHBA Building Buzz

May 2014

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May 14 Building Officials & Membership Meeting One of the benefits of membership to the BismarckMandan Home Builders Association is our advocacy work on your behalf. While you're in the office or out on site, we're communicating with city and county leaders to ensure your needs are met and that rules and regulations help, not hinder, your business.

To help connect our membership to community leaders, the BMHBA is hosting a Building Officials & Membership Meeting on Wednesday, May 14 from 11:30 to 1 p.m. at the Kelly Inn in Bismarck. This is your opportunity to hear from officials representing the cities of Bismarck, Mandan and Lincoln, as well as

Burleigh and Morton counties. `Each member gets one free admission and additional tickets are $10 each. We encourage you to bring partners and staff.

The agenda includes: • 2014 Construction Season Updates • Building Code Highlights • Home Building Items on the Horizon • Q&A Session Please register online or call 222-2400. The deadline to register is Monday, May 12.

There have been signs that OSHA is increasing its enforcement actions on home building sites throughout the country. The current OSHA administration has been clear for some time now that stepped-up enforcement is a top priority and it appears as if OSHA will remain as aggressive as ever under the new Secretary of Labor, Thomas Perez.

There are a few simple things that your members should do to be prepared for OSHA inspections: • Conduct an assessment to identify and correct safety hazards on the jobsite; • Conduct appropriate safety training for employees; • Update records and make sure they are readily available; • Understand the OSHA inspection process (see links below).

NAHB has several resources to assist builders: • NAHB’s Construction Safety & OSHA webpage, which contains compliance assistance information is www.nahb.org/safety.

• Easy-to-use handbooks and videos that present key safety issues builders and workers need to focus on to reduce accidents and injuries,

which can be found at www.builderbooks.com/ safety.

• NAHB Webinar Replay for “How to Prepare for an OSHA Inspection” and corresponding PowerPoint presentation.

OSHA Assistance for the Residential Construction Industry at http://www.osha.gov/SLTC/residential/ index.html.

OSHA Awareness

Like BMHBA on

facebook.com/bmhba

www.qualitytitlend.com 2211 East Main Ave. PO Box 1276 Bismarck, ND 58502-1276

ph: 701.204.6145 | f: 701.425.0425

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BMHBA Building Buzz

May 2014

County Beat: Burleigh County Sheriff’s Department Construction Site Theft Advisory With the upcoming building season approaching, the Burleigh County Sheriff’s Department would like to take a moment to advise home builders of a few tips to reduce theft at construction sites: • Consider utilizing a secured area within the site for equipment storage • Mark all tools and equipment in a conspicuous, distinctive manner to allow for easy identification • Keep tools securely locked in storage trailers or sheds • Stamp all heavy equipment and attachments with an ID number and provide warning signs on equipment indicating that ID numbers are recorded • Lock all equipment cabs during nonworking hours

• Lock oil and gas tank caps where possible • Park equipment centrally in a well-lit, secure area • Provide a secure storage area for target buildings materials • Remove equipment and materials from the site when no longer needed and do not use the site for storage Taking the time to secure your property could save you the time and expense to replace it.

If you experience a loss or observe suspicious individuals or activity, please report it to our Department, 24 hours a day, seven days a week (2226551).

Of the approximately 350 metro markets nationwide, 59 have returned to or exceeded their last normal levels of economic and housing activity, according to the National Association of Home Builders/First American Leading Markets Index (LMI), released on April 7. This represents a net gain of 11 metros year over year.

The index’s nationwide score ticked up to .88 from a March reading of .87. This means that based on current permit, price and employment data, the nationwide average is running at 88 percent of normal economic and housing activity. Meanwhile, 28 percent of metro areas saw their score rise this month, and 83 percent have shown an improvement over the past year.

“I think the big news here is that regions outside of the energy states continue to gain ground,” said NAHB Chief Economist David Crowe. “It’s a promising sign to see areas like Los Angeles and San Jose joining the top

10 largest MSAs showing a recovery. We still expect 2014 to be a strong year for housing and to aid in the overall economic recovery. The job market continues to mend, and with that we will see a steady release of pent-up demand of buyers.”

“Stronger employment numbers seemed to be the driving force this month—an important factor to the recovery of our economy,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Co., which co-sponsors the LMI report.

Smaller metros showing recovery continue to be dominated by the middle of the country experiencing an energy boom. Odessa and Midland, Texas, boast LMI scores of 2.0 or better, with their markets now at double their strength prior to the recession. Also at the top of the list of smaller metros are Bismarck, N.D.; Casper, Wyo.; and Grand Forks, N.D., respectively.

Recovery Continues to Spread to Metro Markets Nationwide

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May 2014

BMHBA Building Buzz

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City Beat: May 14 Session Showcases Mandan Opportunities The Mandan Tomorrow - Economic Opportunity and Prosperity Committee is hosting three business outreach workshops in 2014 as a continued means of assisting existing businesses and aspiring entrepreneurs while encouraging investment in Mandan.

The first of the sessions, scheduled for May 14, focuses on opportunities in commercial development and for business locations in each of Mandan’s three major retail districts: north Mandan in the area surrounding the new Walmart supercenter, Main Street and Downtown, and Memorial Highway and East Mandan.

The session will give interested parties an idea of land and buildings available for sale or lease such as restaurant pads, strip malls, office buildings, and more.

City officials will provide information about Mandan’s growth and future projections, transportation studies, future roadway plans, and local business assistance programs.

The session will be held at the new facility of HIT, Inc. at 2640 Sunset Drive, located north of Interstate 94.

The program runs from 6:30 to 8:30 p.m. Advance registration by May 12 online through www.cityofmandan.com under the “Meeting and Event Registration” tab or by calling 667-3485.

Other sessions planned are “Talk of the Town with Local Leaders” in September and “Business Start-Up 101” in October or November.

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BMHBA Building Buzz

May 2014

National News Clean Water Act Proposal Could Affect Development Projects The long-awaited proposal by the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers to redefine what it means to be a “water of the U.S” was published in the Federal Register this week.

The 91-day comment period ends July 21, but NAHB has already asked for an additional three-month extension.

NAHB staff hosted a members-only webinar earlier this month that explains how expanded federal jurisdiction may affect development projects should the rule be finalized as written.

In addition, the association will work with wetlands consultants to better understand those impacts and continues to seek that information from affected members. Already, NAHB has asked EPA for more clarity

in the rule regarding green infrastructure practices and whether installing features like rain gardens and retention ponds would subject builders and developers to more federal oversight.

Other state and local HBAs also plan to submit comments, and HBA of Pennsylvania member Peter Warren will testify at a local Congressional hearing in Altoona next week.

Officials from both EPA and the Corps are expected to brief the NAHB Environmental Issues Committee during the Spring Board of Directors meeting in Washington, D.C., this June. For additional information, contact Tabby Waqar at 800-368-5242 x8327.

Anatomy of a Proposed Rule: Meaning of 'Waters of the U.S.' On March 25, EPA and the U.S. Army Corps of Engineers proposed a rule to revise the definition of “waters of the United States.” This rule is important to the home building industry because it changes what areas can be regulated by the federal government under the Clean Water Act. Despite the agencies’ claims that this rule is narrower in scope than existing regulations, the proposed rule contains changes that could significantly expand federal jurisdiction, triggering additional expensive and time-consuming permitting and regulatory requirements. On nahb.com go to Education & Events, then E-Learning.

Builder Confidence Holds Steady in April Builder confidence in the market for newly built, single-family homes rose one point to 47 in April from a downwardly revised March reading of 46 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released April 15.

"Builder confidence has been in a holding pattern the past three months," said NAHB Chairman Kevin Kelly.

"Looking ahead, as the spring home buying season gets into full swing and demand increases, builders are expecting sales prospects to improve in the months ahead."

"Job growth is proceeding at a solid pace, mortgage interest rates remain historically low, and home prices are affordable," said NAHB Chief Economist David Crowe.

"While these factors point to a gradual improvement in housing demand, headwinds that are holding up a more robust recovery include ongoing tight credit conditions for home buyers and the fact that builders in many markets are facing a limited availability of lots and labor."

Derived from a monthly survey that NAHB has been

conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low."

Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The HMI index gauging current sales conditions in April held steady at 51 while the component gauging traffic of prospective buyers was also unchanged at 32.

The component measuring expectations for future sales rose four points to 57.

The HMI three-month moving average was down in all four regions. The West fell nine points to 51 and the Midwest posted a four-point decline to 49 while the Northeast and South each dropped two points to 33 and 47, respectively.

May 2014

BMHBA Building Buzz

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National News Tax Extenders Bill Advances in Senate, Fate Remains Uncertain The Senate Finance Committee on April 3 approved by voice vote legislation that renews and extends a number of temporary tax provisions that expired last year that is traditionally known as tax extenders. The legislation contains several provisions supported by NAHB. The U.S. Constitution requires tax measures to originate in the House, and the House Ways and Means Committee has indicated that it will hold a series of hearings examining a number of the tax extenders. However, the House panel has offered no timeline and signaled it will move deliberately on this issue.

In several discussions between NAHB staff and Ways and Means members, the predominate view is that the House will not take up the issue of tax extenders until after the November elections. As a result, it is expected that the extenders debate will continue for the entire year.

Key provisions extended in the Senate Finance Committee package for 2014 (retroactive to Jan. 1) and 2015, include: • The New Energy Efficient Home Tax Credit (45L), which provides builders a $1,000 tax credit for exceeding energy standards by 30% or a $2,000 tax

credit if exceeded by 50%. The base energy code is the 2006 International Energy Conservation Code plus supplements.

• The Existing Home Retrofit Tax Credit (25C), which provides consumers a lifetime tax credit cap of $500 for the purchase of qualifying energy-efficient products.

Remodelers often leverage 25C tax credits when working with clients.

• The fixed 9% LIHTC credit rate, which provides equity for affordable housing investment, along with the fixed 4% rate for acquisition.

• The section 179D deduction for some energy-efficient upgrades to multifamily and commercial properties.

• The deduction for the cost of private mortgage insurance.

• The section 179 small business expensing limits, which provide cash flow and administrative cost benefits for small firms, with limits of $500,000 for deductions and $2 million for capital purchases.

NAHB will continue to advocate for passage of the extenders package in a timely fashion. For more information, email J.P. Delmore at jdelmore@nahb.org or call him at 800-368-5242 x8412.

NAHB to Participate in First-Ever National Fall Prevention Stand-Down

The Occupational Safety and Health Administration (OSHA) will hold its first National Fall Prevention Stand-Down June 2-6 to raise awareness about the hazards of falls. Falls continue to be a leading cause of death for construction industry workers; more than a third of construction fatalities recorded in 2012 happened as a result of a fall.

The agency encourages employers and workers to take time out of the workday to discuss potential fall hazards, fall prevention and topics like ladder, scaffolding and roofing safety during the stand-down.

More information about NAHB’s participation will be announced in the coming weeks. For free education and training resources, information on how to participate, or tips on conducting a successful stand-down, visit OSHA’s official National Fall Prevention Stand-Down website, https://www.osha.gov/StopFallsStandDown.

Additional resources and information on fall prevention can be found in NAHB’s Fall Protection Toolkit at nahb.org.

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BMHBA Building Buzz

May 2014

Page 15

BMHBA Building Buzz

May 2014

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

bmhba.com

 The BMHBA Spring Parade of Homes is April 25-27 and May 4-6. There are a total of 43 homes registered for the event, which is an increase of 43 percent from last Spring.  Parade award winners for People’s Choice and Judges’ Choice will be recognized at the Spring GMM meeting on May 15 at the Seven Seas Hotel & Waterpark.  The Association is hosting Forklift Operator Training and CPR/First Aid/AED Training on May 29.  A New Member BBQ is planned for May 29. We’ll treat members who joined in 2013 and 2014 will grilled grub.  The BMHBA hosted two Storm Water Panel Discussions that brought together City and State staff to share expectations and best practices for builders. Nearly 60 people attended the two events.  The Association will be reaching out to local candidates in advance of the June primaries.

Dickinson Area Builders Assoc.

Irene Schafer, Executive Officer 701-483-0044 dickinsonareabuilders.com

 Our Home Show was a success in Dickinson. We have over 60 exhibitors on a waiting list, so expect to sell out early for Home Show 2015.  We will have the new building available, which will mean doubling our floor space.  Our State Officers attended our April GMM. Very good program; very good attendance.  Scholarship deadline is June 15.  Next GMM is on May 14th at the Eagles Club.

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

 The HBA is currently working with the city of Fargo to educate the home building industry on flood-proof foundation policy revisions. The Association also hosted an OSHA 10-Hour Construction Course in late April.  In preparation for the North Dakota primary election in June, the HBA of F-M

www.ndbuild.com

has scheduled Candidate Forums for local city commission races.  The HBA of F-M will host its Parade of Homes Celebration May 13 to cap off another successful event that showcased 70 homes by 35 builder members over eight days in late April and early May.  The HBA of F-M will kick off its latest Lake Agassiz Habitat for Humanity with a wall raising ceremony for a Veteran Build in June. Members will work with volunteers to construct a home for a woman and her daughter.

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

 We want to thank NDAB President Ken Callahan and NDAB EO Kim Schneider for meeting with our Board of Directors and attending our General Membership Meeting. Members were pleased to be able to meet them in person.  HB Sound and Light hosted the April 30th Builders after Hours and did a great job. It was a fun time for all that attended.  The Project House Committee invited the Board of Directors to a pizza lunch at the 2014 Project House. They received a tour of the progress.  Our spring safety training will be held May 8th from 8 a.m. until 1 p.m. at Muddy Rivers. The topic will be CPR/First Aid. The class is offered free to all members.  Our annual Sporting Clay Shoot is scheduled for May 22nd at the Dakota Hunting Club and is sponsored by Andersen Windows & Doors. The Italian Moon will be cooking the burgers and brats for the crew.

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



May 6 – Contractor update will be held in conjunction with the City of Minot to go over code changes and answer questions. This will become an ongoing joint venture with the City Inspector’s office.  May 6 – Board meeting and lunch with our NDAB executive officers.  May 6 – Builders after Hours hosted

by MDU and Xcel Energy. Annual Appreciation Evening for our elected officials and members. Grand Hotel with PAC fundraising events. North Dakota Association of Builders

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

 Our Parade of Homes dates have been changed to June 21 & 22. We hope to see you there!  Our Home Show in April was a big success! Thanks so much to the 145 booths who participated and the nearly 1400 people who attended!

Thank you to the NEW NDAB 2014 Partners as of April 11, 2014! We truly appreciate your support and we are very excited to serve you throughout the entire year! See you at our first event in June!

Silver - Miller Insulation Co., Inc. Bronze - ND Guaranty & Title Co. Bronze - ProBuild Bronze - Williston Area Builders Assoc.

Also, thank you to our first Golf Sponsor,

Westwood Professional Services,

who signed on as a Lunch Sponsor for the event! We look forward to seeing you in June!

We would also like to recognize our 2014 ND Professional Builders. Thank you for making continuing education a priority! Visit the NDAB website for additional information or to contact a ND Pro Builder.

Eric Berg, Fargo Charles Bon, Robinson Michael Bullinger, Fargo Don Dabbert, Fargo Jason Eid, Fargo Aaron Greterman, Fargo John Gunkelman, Fargo Todd Halle, Harwood John Hough, Moorhead Robert Kockmann, Fargo Greg Krueger, Fargo Tyrone Leslie, Fargo Dan Lindquist, Fargo David Nordstrom, Williston Gary Orth, Fargo Tom Spaeth, Fargo Mark Spriggs, Moorhead Mike Workman, Fargo Charles Zach, Wahpeton



May 2014

PRSRT STD U.S. Postage

PAID Permit #72 Bismarck, ND 58501

2600 Gateway Avenue Suite 1 Bismarck, ND 58503

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