November 2018 Building Buzz

Bismarck-Mandan Home Builders Association

BUILDING

Buzz BUILDERS ACCEPT AWARDS FROM FPOH page 5

INCREASE IN HOMEOWNERSHIP PROGRAM INCOME LIMITS APPROVED page 7

HOLIDAY HOME WALK TO HELP YOUTH page 8

NGBS PROGRAM HAS CERTIFIED 150,000 HOMES page 11

November 2018

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

Like Us! www.facebook.com/bmhba Follow Us! www.twitter.com/bmhba

Publisher/Editor: Dot Frank Layout Editor: Stephanie Drietz - Drietz Designs Contributor: Tracy DeForest

New Members & Anniversaries September 2018 New Members L&H Electric Aaron Lunde | 701-955-4970

Time to Renew!

ABC Seamless of Bismarck

Paradise Spas

All Seasons Roofing

Plains Commerce Bank

Amy Hullet

Roots Landscaping, LLC

Curb & Buddies

Ryan Karsky Construction

Dakota Caulking, Inc.

Sattler Home’s, Inc.

Elite Homes

Scott D. Berger Construction

Kutzer Construction, Inc.

Storage Works

KX News

Tollberg Homes

Landmark Realty

Truss Systems, Inc.

Meridian Land Surveys

Waste Management of ND, Inc.

Mr. Bitz Tractors

Western Products

New Vision Security

Western Steel & Plumbing

North Dakota Guaranty & Title Co

White Lily Cleaning Services, LLC

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Building Buzz | November 2018

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

2018 Board of Directors PRESIDENT

Lynn Klein Gate City Bank Phone: (701) 355-7633 lynn.klein@gatecitybank.com

1ST VICE PRESIDENT

Members with November Anniversaries. Renew by November 30, 2018.

North Dakota Housing Finance Agency

Your membership is three-in-one: BMHBA, NDAB and NAHB

Jeff Sattler Sattler Homes Phone: (701)255-7628 jeff@bismarckbuilder.com

2ND VICE PRESIDENT Rory Anderson Verity Homes of Bismarck Phone:(701) 354-2846 rory@verityhomes.com Chad Moldenhauer K&L Homes Inc. Phone: (701) 258-4584 chad@k-lhomes.com Bill Schmid Townsquare Media Phone: (701) 250-6602

bill.schmid@townsquaremedia.com

Brian Eiseman Stoneshire Builders Phone: (701) 471-6935 brian@stoneshirebuilders.com

PAST PRESIDENT

Shannon Reichenberg Milestone Builders Phone: (701) 258-9473 shannon@milestone-builders.com

SECRETARY/TREASURER Greg Zenker Northern Plains Plumbing, Heating & Air Phone: (701) 222-2155 greg@northernplains.net Susie Franklin Choice Financial Phone: (701) 751-7282

s.franklin@choicefinancialgroup.com

Joe Hillerson Boulder Homes (701) 400-5554 boulderhomesnd@gmail.com Greg Meidinger Aspire Homes (701) 426-8583 greg@daretoaspirend.com Marc Menge BNC National Bank Phone:(701) 250-3000 mmenge@bncbank.com

BIANCO REALTY SALES AWARDS Bianco Realty has announced their top 6 “REALTORS® OF THE MONTH” for October: Greg Gerhart, Darcy Fettig, Randy Fix, Shirley Thomas, Judy Maslowski and Lynnell Strothman.

These six REALTORS® had the highest sales totals at Bianco Realty in October 2018.

Greg Gerhart

Darcy Fettig

Randy Fix

Shirley Thomas

Judy Maslowski

Lynnell Strothman

September 2018 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 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 JANUARY 0 9 1 0 0 0 1 0 0 2 0 2 0 0 0 2 0 1 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 4 9 29 20 17 10 7 4 7 3 NOVEMBER 16 11 9 3 7 7 7 2 5 0 3 4 1 DECEMBER 1 0 0 0 0 0 0 1 0 4 0 0 2 TOTAL 297 286 270 142 0 0 45 20 132 123 114 101 67 40 37 23 83 82 51 55

BISMARCK ROW HOUSE

VERITY HOMES OF BISMARCK, LLC................... 4302 SERENITY CT VERITY HOMES OF BISMARCK, LLC.................. 4306 SERENITY CT HUNTINGTON HOMES........................................... 203 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 205 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 415 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 417 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 209 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 211 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 409 BUCKSKIN LOOP HUNTINGTON HOMES........................................... 411 BUCKSKIN LOOP INVESTCORE INC...................................................... 3532 MERIDIAN DR

LINCOLN SINGLE FAMILY DWELLING

RUSCH HOMES LLC................................................. 6930 BUTLER LOOP RUSCH HOMES LLC................................................. 6932 BUTLER LOOP RUSCH HOMES LLC................................................. 2811 MAJESTIC ST RUSCH HOMES LLC................................................. 2949 BUTLER ST RUSCH HOMES LLC................................................. 2960 BUTLER ST

BISMARCK SINGLE FAMILY DWELLING

BIG RIVER BUILDERS INC....................................... 3826 NEPTUNE CIR ROGSTAD CONSTRUCTION LLC......................... 3903 CREST PL VERITY HOMES OF BISMARCK, LLC................... 3940 LONE PEAK DR JOE VETTER CONSTRUCTION.............................. 607 FLINT DR PRAIRIE AIRE HOMES, INC.................................... 3933 CLAIRMONT RD KNUTSON HOMES INC........................................... 3904 CREST PL SATTLER HOMES INC..............................................4804 MALTBY ST SATTLER HOMES INC..............................................4816 MALTBY ST SATTLER HOMES INC..............................................4902 E CALGARY AVE PINNACLE HOMES, INC..........................................3927 CREST PL ARTISTIC HOMES INC & WELCH CO................... 3803 KNUDSEN LOOP JSJ CONSTRUCTION LLC........................................340 SW 48TH AVE HARLEY RATH........................................................... 5200 FERNWOOD DR BOULDER HOMES LLC........................................... 3625 E PRINCETON AVE

MANDAN TWIN HOME

BURLEIGH CTY SINGLE FAMILY DWELLING

KNIFE RIVER PREMIER BLDRS.............................. 704 PARKER RANCH RD OUTLAND SERVICES LLC...................................... 8422 OUTLAND RD SELF/OWNER............................................................ 15285 NE 26 ST

VERITY HOMES OF BISMARCK, LLC................... 712 HILLCREST DR SE VERITY HOMES OF BISMARCK, LLC.................. 712 HILLCREST DR SE VERITY HOMES OF BISMARCK, LLC.................. 716 HILLCREST DR SE VERITY HOMES OF BISMARCK, LLC..................716 HILLCREST DR SE VERITY HOMES OF BISMARCK, LLC..................2325 BAYVIEW CT SE VERITY HOMES OF BISMARCK, LLC..................3704 24TH ST SE VERITY HOMES OF BISMARCK, LLC..................3612 24TH ST SE

MORTON CTY SINGLE FAMILY DWELLING

MANDAN SINGLE FAMILY DWELLING

VERITY HOMES OF BISMARCK, LLC................... 3801 AMITY CIRCLE SE VERITY HOMES OF BISMARCK, LLC................... 3705 AMITY CIRCLE SE ANDREI NICULITA.................................................... 1812 SPRING CT SE PRESTIGE TILE & DESIGN....................................... 1809 SPRING CT SE

www.C21Morrison.com

CENTURY 21 Morrison Realty Call us today at 701.223.6654

PROLINE HOMES INC............................................. 2478 EUGENE DR N

November 2018 | Building Buzz

3

President’s Letter

I

t is hard to believe that I have just two months remaining of my time as president of the association. Time flies when you’re having fun and I have had fun the past 10 months. As the association president, I was able to get close look at how the organization operates, what members are expecting of us and how we do and can respond.

I want you each to know that our association remains strong. Yes, we have experienced a decline in permits in the City of Bismarck and a subsequent dip in membership; however, those changes have only encouraged our members, board and staff to ensure we deliver value every day.

The Fall Parade of Homes and Fall Awards Mixer were visible proof of the work we do.

Less noticeable, but definitely not less impactful, is the work that has happened at the county and city level. The Government Affairs Committee (GAC) went to bat last month to ensure that onerous changes to the development process weren’t adopted.

At risk was the requirement of a second and third access for county developments. The proposed language would have required a secondary access to a rural development that had seven to 100 lots, and a third access would have been required for developments bigger than 100 lots.

Lynn Klein

Board President

Members of the GAC spoke at the Burleigh County Planning Commission meeting, met with county commissioners and testified at the County Commission meeting. Their work paid off and the county commission voted to remove the reference to number of lots and instead implore staff to make a recommendation based on the specific dynamics of each development.

As we enter the winter months, there is one event in particular that I encourage you to support. The Holiday Home Walk is celebrating its third anniversary as an event co-hosted by the BMHBA. This event features homes decorated for the holidays and serves as a fundraiser for the symphony youth orchestra. You can support the participating builders and students by purchasing a ticket and attending. Also, encourage your co-workers, family and friends to explore the eight homes featured in the event.

Information regarding the Holiday Home Walk is available online at www.HolidayHomeWalk.com and on our Facebook page. Like the event and share it socially.

Speaking of Facebook, the association is nearing a milestone. Our social media presence has grown significantly in the past few years and we are now just shy of 1500 friends. Help us get there by liking our page and asking others to do the same.

Finally, please think of the HBA as your company makes its 2019 marketing plans. We generate some funds through your membership fees, but the majority of money needed to run this association comes from non-dues revenue. Investing in tickets and sponsorships not only promotes your business but supports the industry that works to ensure you can continue to run your business. Contact Tracy or Dot for ways to get involved.

Together we row,

Lynn Klein, President BMHBA Board of Directors

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Building Buzz | November 2018

Builders Accept Awards from FPOH

B

uilders Accept Awards from FPOH The Fall Parade of Homes award-winning builders were recognized at the Fall Awards Mixer & Board Elections event last month. One builder from each price category was awarded the People’s Choice Award based on the number of votes they received from spectators.

The lineup of winners included: Triton Homes | 3821 Stacy Dr. $259,900 - $274,900 Boulder Homes LLC | 801 Weyburn Dr. $299,900- $309,900 Apex Builders, LLC | 749 Walter Way $325,900 - $334,900 J.E. Homes | 4043 Knudsen Loop $343,990 - $399,900 W.I.T. Construction | 3312 Valley Dr. $430,000 - $439,900 Stoneshire Builders | 2708 Promontory Dr. $459,900 - $499,900 Knutson Homes | 2506 Langer Way $534,900 - $575,900 K & L Homes, Inc. | 5705 Crested Butte Rd. $615,900 - $699,900 Diversity Homes, Inc | 2613 Langer Lane $829,000 - $1,250,000 In addition to announcing the People’s Choice winners, Fall Parade of Homes stats were shared. There were 99 more attendees in 2019 than 2018 for 4% attendance growth. The number of entries also exceeded those last year. This year’s event featured 38 homes versus 33 in 2017.

According the survey results submitted by participating builders, 64% reported steady traffic to their homes, 7% said they were busy and 29% slow. Despite the overall traffic, 92% of the same builders were somewhat to very satisfied with it.

The number of visitors per house varied widely. We had reports from 190 to 2,000 with an average of 556 spectators.

November 2018 | Building Buzz

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CITY & COUNTY SNOW REMOVAL REMINDER Mandan property owners are required to remove snow and ice from their sidewalk within 24 hours after its deposit. If not removed, the City may do so and charge the property owner.

Please clear the area around mailboxes and fire hydrants. For more snow removal related information visit www.cityofmandan.com/ snowremoval.

FT. LINCOLN SIGNAL AND TRAIL PROJECT PROGRESSES The City of Mandan will receive a $148,000 transportation alternatives grant from the North Dakota Department of Transportation (NDDOT). The grant is for a pedestrian activated crosswalk and a new trail. The pedestrian activated crosswalk will be located at 19th Street SE and Ridge Drive SE.

Poor visibility coming up the hill on 19th Street for east bound traffic requires a highly visible crossing. The portion of the trail covered in the grant is from Fort Lincoln Elementary School to Macedonia Avenue SE. The proposed multi-use trail is anticipated to be 10-foot wide and located on the south side of 19th Street SE. The City Commission approved hiring Stantec to complete the final design of phase one of the project during an October meeting. Bids will be sought in the spring. The Mandan Public School District, Mandan Park District and City of Mandan have agreed to share in the local costs of $77,000 for the project.

The City of Mandan, Mandan Public School District and Mandan Park District have been discussing a possible phase two which would extend the trail west to Highway 6. Construction is anticipated to begin in 2019 for phase one of the project. Studies help make grant attempts successful. This grant application stemmed from the results of a school crossing study that was conducted by the Bismarck Mandan Metropolitan Planning Organization in 2016.

The study found 10 percent of students at Fort Lincoln Elementary School walked to and from school and between 3 and 5 percent rode a bicycle. It also provided offi cials the opportunity to see where changes could be made, which ultimately led to important information to use in a successful grant application.For membership lists and descriptions for City of Mandan volunteer advisory positions, see the “Boards and Committees” section under the “City Government” category on the City website at www.cityofmandan.com.

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Building Buzz | November 2018

BISMARCK ANNOUNCES DIGITAL VACANT PARCELS INVENTORY The City of Bismarck has revamped a vacant parcels inventory that is available to the public by viewing the following URL: http://arcg.is/CXOSP (best used with Chrome or Firefox browsers). A total of 1,514 parcels within the city limits of Bismarck have been identified as currently vacant, yet potentially developable. Staff from the Community Development Department estimate that 3,793 housing units could be constructed within these vacant parcels, given the zoning or future land use designation and typical densities within each district.

The vacant parcels inventory includes a broad range of parcels. Some are lots that have already been through the platting process, have available public services, and are essentially ready for a building permit right now. Other parcels are open tracts of land that could be developed but would require a number of steps before any building permits may be issued. Interested parties may contact the property owner or the Community Development Department to learn more about a specific parcel. The property owner on record can be viewed by clicking on the parcel (by showing a parcel in the inventory, it is not implied that the property owner has an interest in development.)

The need for this inventory was identified in the 2016 Infill and Redevelopment Plan adopted by the Bismarck Board of City Commissioners. According to this plan, “Information about the current inventory can help prospective businesses identify suitable locations, help developers decide when to initiate new subdivisions, and help the City plan for the pace of growth. It also identifies opportunities for infill that are available throughout the City.”

PROMOTE, PITCH AND PULL IN NEW CUSTOMERS

The Bismarck-Mandan Home Show is one of the best ways to market your business. The event, which takes place on March 15 and 16 attracts thousands or prospective buyers. A booth in the 2019 Home Show offers you a unique opportunity to: • Be noticed – guaranteed!

• Have direct contact with customers.

• Cater your message to each person.

• Book appointments or sell on the spot.

• Meet thousands of clients in a condensed amount of time – two days!

We encourage you to get your booth space now. The 2019 Home Show will feature FREE Friday, courtesy of American Bank Center, a VIP Vendor Lounge, Toddler Town and more.

Registration is open online at BisManHomeShow.com. Click on the Exhibitor menu option and then on the link below the map. For additional information contact Tracy DeForest at tracy@bmhba.com or 222-2400 ext. 2.

CITY & COUNTY INCREASE IN HOMEOWNERSHIP PROGRAM INCOME LIMITS APPROVED The North Dakota Industrial Commission has approved an increase of the income limits for North Dakota Roots, a program that provides affordable financing, and down payment and closing cost assistance to households who may have previously owned a home and first-time buyers whose income exceeds the limits of North Dakota Housing Finance Agency’s (NDHFA) FirstHome™ program.

“Almost 43,000 households have successfully achieved homeownership with North Dakota Housing Finance Agency’s assistance,” said members of the Industrial Commission in a joint statement. “By increasing the North Dakota Roots program’s income limits, we hope more households will be able to attain that goal and establish themselves and their families in North Dakota.”

NIESS & SEIFERT JOIN BIANCO REALTY Bianco Realty is excited to announce the newest REALTORS® to join their professional Real Estate Team: KYLE NIESS and NATE SEIFERT. Kyle & Nate look forward to helping clients with their Real Estate needs, achieving their dream of home ownership and providing a Tradition of Excellence!

The commission, consisting of Gov. Doug Burgum as chairman, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring, oversees NDHFA. With the Commission’s approval, the Roots program’s maximum income limits were set at 200 percent of area median income, $167,800 to $193,200. The limits vary depending on the county in which the financed home is located.

“During discussions with community leaders and our lending partners, they cited the difficulty of finding a secondary market for loans that don’t qualify for conventional financing,” said Jolene Kline, NDHFA’s executive director. “By offering this financing option, NDHFA can partner more effectively with our lenders. Without a market for these loans, community growth is hindered particularly in rural areas.”

KYLE NIESS

NATE SEIFERT

By offering this financing option, NDHFA can partner more effectively with our lenders.

NDHFA’s homeownership program funding is provided by secondary-market capital. A network of private-sector lenders originate loans on behalf of the agency and sell the loans to NDHFA when they are closed. All of the servicing is retained in state.

Through Roots, NDHFA provides financing to approximately 230 households annually. So far this year, the average program user’s household income is $84,170 and the average loan is $212,300.

Known primarily for the financing it offers first-time homebuyers, NDHFA expanded its capacity to new and returning North Dakotans in 2002 dubbing the program “North Dakota Roots.” In 2014, citing the struggle of households whose income exceeds FirstHome’s program limits to afford the down payment requirements associated with conventional financing, the agency expanded Roots to any qualifying household earning up to 140 percent of the area median income. The maximum Roots loan amount must comply with the current Fannie Mae/Freddie Mac conforming loan amount or the limits of the applicable loan insurer/guarantor. All of NDHFA’s borrowers are expected to meet normal credit underwriting standards and occupy the property as their principal residence.

NDHFA is a self-supporting state agency dedicated to making housing affordable for all North Dakotans. More information on the agency’s homeownership programs is available online at www.ndhfa.org.

November 2018 | Building Buzz

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BMHBA NEWS HOLIDAY HOME WALK TO HELP YOUTH

LEGISLATION & LOBBYING TOP PRIORITY LIST IN 2019

Members attending the Fall Awards Mixer & Board Election were asked to rank association priorities for the upcoming year. According the submitted responses, legislation/lobbying ranked number one followed by member networking, consumer events, education and promotion to consumers.

The Bismarck-Mandan Home Builders Association is once again excited to partner with the Bismarck-Mandan Symphony Orchestra (BMSO) to present another annual Holiday Home Walk.

Proceeds from this event will be presented to the Bismarck-Mandan Youth Symphony Orchestra.

The Holiday Home Walk will be held on Nov. 18 from noon to 5 p.m. at various homes throughout the Bismarck-Mandan area. Tickets are available now at the Bismarck-Mandan Symphony office located within the World War Memorial Building at 215 N 6th Street in downtown Bismarck.

The BMHBA will use this insight to plan events that meet the needs of members. If you have ideas that support any of the initiatives, please share them with staff at info@bmhba. com or by calling 222-2400.

The 2018 event features eight homes entered by various builders including: Dakota Adventist Academy, Shaun Kessler Construction, Verity Homes, Stoneshire Builders, Knutson Homes, K & L Homes and Diversity Homes. In addition to new construction the Holiday Home Walk welcomes Tracy’s Sanctuary House to the tour.

Details available at HolidayHomeWalk.com or through the BMHBA mobile app.

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 | November 2018

UC TS D O R T P OUR SUPPOR Y E T O ND PROM RVICES A UILDING E! B IM SE AND E HOME E SAME T TH AT TH STRY U a.com D IN mhb @b t r a c y - 2 4 0 0 g s p o t. t c a C o n t o r 2 2 2 ve r t i s i n ad this m i a l to c

MEMBERS VOTE IN NEW BOARD MEMBERS Members attending the Fall Awards Mixer & Board Elections event last month at the Ramada had the opportunity to vote in two board members.

Jamie Schmidt

Past President Shannon Reichenberg of Milestone Builders and director Brian Eiseman of Stoneshire Builders have terms expiring at the end of the year. Reichenberg stepped down from his seat, while Eiseman sought another term.

Brian Eiseman

There were two builder member candidates on the ballot for two seats. Eiseman was re-elected and Jamie Schmidt of Triton Homes was newly elected. Both will begin their terms in January and will be sworn in at the Annual Dinner on Jan. 18 at the Harvest Catering & Events on Main Street in Mandan.

OUT WITH THE OLD The association tried out a new format for its events during the Fall Awards Mixer & Board Elections. Heavy hors d’ oeuvres and an open bar replaced the typical sit-down meal and cocktail tables were co-mingled with standard round tables to encourage socializing.

The new format was met with excellent reviews and we will replicate that style at our next event – the Annual Dinner. The association invites you to save the date and attend this event on Jan. 18 at the Harvest Catering & Events on Main Street in Mandan.

The event will include the inauguration of our new board, a visual exhibit of 2018 accomplishments and the opportunity to give to the BSC Scholarship.

Find information online at bmhba.com and contact Tracy DeForest at 222-2400 or tracy@ bmhba.com for sponsorship opportunities.

SET IT AND FORGET IT

EVENTS

2018 Calendar of Events January 18

BMHBA Annual Banquet 5:30 - 8:00 P.M. Harvest Grill, Mandan, ND

Join us as we celebrate the start of a new year with the BMHBA. The Annual Banquet is one of our premier events that features fine food, a BUILD-PAC fundraiser, a formal program and a special guest. Register today to reserve your seat(s) along with more than 200 other home building industry supporters.

February 21

Builders, Beans & Beer Chili Cookoff 5:00 - 7:00 P.M. Burleigh Co. 4H Building, Bismarck, ND

Winter blues got you down? Then it's time for some fun! Join us for a new twist on an old favorite. Fun Night is now Builders, Beans and Beer. Enjoy house chili and serve as judges for the board cookoff on Thursday, Feb. 21. You must be 21 to attend.

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

The BMHBA is in the midst of its annual Association Support Campaign and we invite you to pick up your 2019 sponsorships. Now is the time to take a look at your marketing and meeting budgets to make room for our events like the Annual Dinner, Home Show, Parade of Homes, Awards Mixers, Golf Tournament and more.

The early bird gets the best options and is off the hook when it comes to year-round calls for sponsorship support. Members who haven’t sponsored us in the past are invited to pick up any sponsorship in exchange for a listing on our Do Not Call list.

Sponsorship information is included in this newsletter as an insert and available online at https://bit.ly/2z8QR0m. Contact Tracy DeForest at tracy@bmhba.com or 222-2400 for details.

For the Best Prices on a Complete Insulation Package or Material, Contact …

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November 2018 | Building Buzz

9

NATIONAL NEWS

HOW TO RESPOND IF ICE COMES CALLING

HOW DO OPPORTUNITY ZONES WORK? Recently the Treasury Department and IRS released proposed regulations intended to clarify key questions regarding investing in qualified opportunity funds (QOFs). In addition, the IRS issued a revenue ruling that provides guidance to taxpayers regarding the “original use” requirement for land.

Public comments on the proposed regulations will be accepted until Dec. 28. These proposed regulations may be changed before the agencies finalize them.

To help further clarify what opportunity zones and QOFs are, and how the associated tax benefits work, NAHB has provided answers to several of the most common questions on the subject, including: • What are opportunity zones and QOFs?

• What type of income is eligible for deferral?

• Can pre-existing entities qualify as a QOF?

NATIONAL NEWS

NATIONAL NEWS

• How can I submit comments to the Treasury and IRS? • Will there be additional regulations?

U.S. Immigration and Customs Enforcement (ICE) has ramped up oversight of employers' obligations to verify the validity of each employee's identity and employment and is conducting inspections all over the country. NAHB has teamed up with immigration law experts to provide members with information on what to expect – and what to do – when a jobsite gets a visit from ICE. Visit http://nahbnow.com/2018/10/how-tosurvive-an-ice-inspection for information.

NAHB WORKING WITH HUD AND JUSTICE ON ACCESSIBILITY RULE

NAHB is working with HUD and the Justice Department to improve burdensome compliance requirements under the Fair Housing Act's accessibility provisions. NAHB sent a letter to HUD in September outlining steps the agency could take. Among other things, NAHB suggested that the Justice Department and HUD work together to improve compliance assistance materials and guidance for builders and developers involved in designing and building multifamily housing. mbers continue to seek places to donate their money, materials and time.

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Building Buzz | November 2018

View the answers to these and other FAQs on nahb.org.

Note: NAHB urges all taxpayers to consult with a tax and/or investment advisor prior to making any investment/financial decisions. The information NAHB provides is strictly for informational purposes and highlights only certain aspects of the proposed regulation.

PROTECT YOUR HEARING ON THE JOBSITE October was National Protect Your Hearing Month, an initiative from the National Institutes of Health (NIH) to encourage Americans to protect themselves from noise-induced hearing loss (NIHL).

While it’s important for everyone to protect against this preventable form of hearing loss, home builders and others in construction are particularly susceptible to damage caused by very loud noises.

OSHA notes that 22 million workers are exposed to potentially damaging noise at work each year. Last year, U.S. business paid more than $1.5 million in penalties for not protecting workers from noise. While it’s impossible to put a number to the human toll of hearing loss, an estimated $242 million is spent annually on workers’ compensation for hearing loss disability.

Noise-induced hearing loss is a preventable condition. Do everything you can to protect yourself and your workers on a home building jobsite, because it’s very hard to recover lost hearing.

The National Green Building Standard Certification Program reached an important milestone recently with the certification of the 150,000th home to meet its requirements, and there are 120,000 more homes in the pipeline. Builders are drawn to the NGBS certification because it gives them a marketing advantage. NGBS certification requires incorporating sustainable strategies in multiple areas of design and construction, such as lot development; resource, energy and water efficiency; indoor environmental quality; and operation, maintenance and owner education.

LABOR DEPT. ANNOUNCES RULEMAKING ON ASSOCIATION RETIREMENT PLANS The U.S. Department of Labor (DOL) announced a Notice of Proposed Rulemaking to help small businesses strengthen retirement security for their employees.

The proposed rule would make it easier for small businesses to offer retirement savings plans to their workers through Association Retirement Plans, which would allow small businesses to band together to offer 401(k) plans to their employees.

“This need is particularly acute in the residential construction sector, where most home building firms are small businesses with less than 10 employees,” Howard said.

Under the proposed rule, Association Retirement Plans could be offered by associations of employers in a city, county, state or a multi-state metropolitan area, or in a particular industry nationwide. Sole proprietors, as well as their families, would also be permitted to join such plans.

HOLIDAY HOME WALK | SUNDAY, NOV. 18

NATIONAL NEWS

Walk the halls decked with holly during the Holiday Home Walk hosted by the Home Builders and Symphony Orchestra. All proceeds to benefit the youth orchestra.

By permitting these new plan arrangements, the proposal would enable small businesses to offer benefit packages comparable to those offered by large employers. The DOL plans to reduce administrative costs through economies of scale and to strengthen small businesses’ hand when negotiating with financial institutions and other service providers.

NATIONAL NEWS

NAHB has been actively engaged in promoting retirement security with the Administration. NAHB CEO Jerry Howard was at the signing of President Trump’s executive order that paved the way for the proposed rulemaking in August.

NATIONAL NEWS

NGBS PROGRAM HAS CERTIFIED 150,000 HOMES

Enjoy warm holiday décor and live performances on Sunday, Nov. 18 from noon to 5 p.m.

Builders: Dakota Adventist Academy, Shaun Kessler Construction, Verity Homes, Stoneshire Builders, Knutson Homes, K & L Homes, Diversity Homes and Tracy’s Sanctuary.

Decorators: Grendahl Design Co., Stella’s, Starion, Shannon Koski, BMHBA and C&H Glass.

Tickets available in advance for $10 or at the door for $15. Visit HolidayHomeWalk.com.

November 2018 | Building Buzz

11

NATIONAL NEWS

NATIONAL NEWS

NAHB LEADERS PUSH FOR MORE FAVORABLE CODES

NAHB members advocate for favorable codes with ICC CEO Dominic Sims, center, at the ICC Board of Directors meeting.

NAHB Chair Randy Noel reinforced NAHB’s codes priorities at the International Code Council’s (ICC’s) Board of Directors meeting Oct. 20 in Richmond, Va. Specifically, he addressed members’ concerns with the federal cost share incentive that is part of the Bipartisan Budget Act of 2018.

This act includes incentives that may increase the federal cost share for states within disaster areas. It has a provision encouraging states to adopt the “latest published editions” of relevant building codes that incorporate the “latest hazards-resistant designs.”

NAHB members are concerned that this language may be interpreted to mean that states must use the 2018 codes or future codes immediately upon publication.

“NAHB supports increasing the storm resistance of homes if necessary. However, we are concerned about kneejerk reactions to stormdamaged homes that are constructed to older codes,” Noel told the ICC Board. “But we believe that any increase in code requirements must solve specific shortcomings of the current building codes; must be based on forensic analysis; and must be cost effective.”

NAHB Second Vice Chair Dean Mon spoke about the labor shortages within both the NAHB and ICC membership. He noted that NAHB is helping to address the workforce shortage through its philanthropic arm, the National Housing Endowment, HBI, the Student Chapters program, the Skilled Labor Fund and other resources to get students thinking about careers in our industry.

NATIONAL NEWS

“NAHB is also reaching out to states, cities and local school boards to promote trade-skills education and ensure students are made aware of careers in the building trades,” Mon told the group.

E S I T R E V AD E!!

HER a.com b h @bm . rac y 2400 t t spot c a C o n t o r 2 2 2 ve r t i s i n g ad this m i a to c l

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Building Buzz | November 2018

The median lot size of a new single-family detached home sold in 2017 was 8,560 square feet, or just under one-fifth of an acre. While only two square feet smaller than 2016’s median lot size, it is still the lowest number since the Census Bureau’s Survey of Construction (SOC) started tracking the series for single-family detached homes in 1992.

But as NAHB economist Natalia Siniavskaia observed in a recent Eye on Housing blog post, regional differences in lot sizes persist. For example, looking at single-family detached speculatively built homes started in 2017, the median lot size in New England is twice as large as the national median.

New England is known for strict local zoning regulations that often require very low densities. Therefore, it is not surprising that more than half of singlefamily detached spec homes started in New England are built on some of the largest lots in the nation, with more than half of the lots exceeding four-tenths of an acre.

Meanwhile, the Pacific division, where densities are high and development land is scarce, is home to the smallest lots. Half of the lots in this area are under 0.15 of an acre.

The U.S has added 315,000 construction sector jobs over the past 12 months, a 4.5% increase compared to September 2017. Florida had the highest annual growth in the construction sector at 14.8%, which includes both residential and non-residential construction. Georgia (12.2%) and Arizona (10.8%) round out the top three.

NAHB economist Danushka Nanayakkara-Skillington observed in an Eye on Housing blog post that across the 44 states that reported construction sector jobs data to the Bureau of Labor Statistics, 26 states had an increase in September, 14 states reported a decline, and four states remained unchanged compared to August.

Between August and September 2018, Kentucky had the largest increase in construction job growth with 2.3%, while the largest decline was in Kansas where total construction employment fell by 2.3%. Overall the construction sector posted a net gain of 23,000 jobs which is 0.3 percentage points higher than in August.

Read more in this Eye on Housing post at https://bit.ly/2QFmV2G.

NATIONAL NEWS

CONSTRUCTION JOBS CONTINUE TO CLIMB

NATIONAL NEWS

AVERAGE NEW LOT SIZE REMAINS AT RECORD LOW

TOP 10 PUBLICLY-TRADED BUILDER SHARE LOWER IN 2017 The 25.5% share in 2017 is out of the 2017 U.S. total of 616,000 new home sales. This count represents a smaller share of the total single-family market when not-for-sale, custom home building is included.

As NAHB economist Steve Melman reported in a recent Eye on Housing blog post, publicly-traded companies possess many advantages, including better access to credit from their own balance sheets, economies of scale in land and material purchases, and in advertising and land holdings.

However, small builders are better positioned to address the growth in their local markets and their familiarity and flexibility allows them to customize their product to meet local demands and preferences.

Also, small home building companies usually have their roots in the local market and use those more personal relationships to improve quality and increase repeat business.

The often held small builder concern that the large national companies will take share away has not occurred. The residential construction industry remains primarily a sector dominated by a large number of small entrepreneurs.

November 2018 | Building Buzz

13

NATIONAL NEWS

The top 10 publicly-traded builders in 2017 captured a 25.5% share of new single-family home closings, down from 27.4% in 2016. The data is based on their latest 10K filings with the Securities and Exchange Commission, which provide a comprehensive summary of each firm’s financial performance.

NDAB NEWS Monthly News from the North Dakota Association of Builders

Dan Lindquist,

November 2018

Kim Schneider,

NDAB President

NDAB Chief Executive Officer

Are you ready for winter?

Opportunity to be Involved The first cold days of fall typically have us As the temperatures drop as quickly as the asking ourselves, where did fall go so quickly leaves have fallen it is time to reflect on anothand am I ready for this? Soon enough, we er successful year for NDAB and start to disacclimate and find the beauty and joy that cuss our plans for the upcoming year. Those winter activities in this region of the country members that make up our Board of Directors, offers us. Cold weather people know what to PAC Trustees and various committees are all Dan Lindquist expect and begin by preparing and winterizing valued volunteers. We recognize and appreciKim Schneider President their home and yard. If this is the first-time of ate the time they put into helping with the sucCEO owning your own home, or living in a cold cess of NDAB that takes them away from work weather state. and family time. While there are too many members to list individually Here are a few things to consider: in this newsletter, they are recognized yearly at our Annual Banquet and their efforts are always acknowledged by Sara Frank, NDAB Of•Keep the cold air out and the warm air in. Insulate walls and attics, caulk fice Manager, Brenda Bry, NDAB Development Director and myand weather-strip doors and windows, and install storm windows. self. Working together as a team is what pushes our efforts forward •Clear rain gutters so they don’t fill with water that could freeze and and every single member’s involvement at the local, state and national cause damage to the roof due to the added weight. level are greatly admired and appreciated. If you are interested in •Trim tree branches that could potentially fall on your home during a learning how to become more involved in the association, please conwinter storm. Hiring a professional is strongly advised, especially if any tact your local Executive Officer or ask a fellow local member. Fresh branches are near power lines.

•Have your heating equipment and chimney cleaned and inspected every ideas, new friends and hardworking volunteers are always welcome! year.

•Check to see if water pipes could use foam wrap or similar products to help prevent them from freezing.

•Make sure all your fuel-burning equipment is vented to the outside, and the vent openings are clear of debris and snow.

•Learn how to shut off your main water valve in case your pipes do freeze and burst.

NDAB will be hosting their Annual Banquet and Board of Directors meeting November 29-30 in Williston, ND. We invite you to join us on Thursday, November 29 while we install our new State President, Bob Horab (Williston), celebrate and thank our outgoing President, Dan Lindquist (Fargo-Moorhead), install our new Board of Director Members and celebrate our past year achievements as we toast the upcoming year. Associate of the Year, Builder of the Year, Builders EnWhen using alternative heating and power sources it can increases the gaging Associate Members and Leader of the PAC awards will be presented along with our local membership award and first ever Battle of risk of electric shock, fire or carbon monoxide poisoning so the the Builders award. This is one of many great opportunities to network necessary safety precautions should be taken: and meet fellow members from across the state. More information on this great event will be forthcoming and we look forward to celebrating • Keep fire extinguishers around the home and know how to use them. with you!

• Never use a generator, grill, camp stove or other gasoline, propane, natural gas or charcoal burning device inside your home, garage, basement, or any partially enclosed area. Outside, do not place the unit near a door, window or vent where carbon monoxide could seep indoors.

• When using a space heater be sure to read and follow the instructions correctly to prevent a home fire.

Have you registered yet for the 2019 International Builders Show (IBS) and Annual Meeting of the Membership being held February 19-21 in Las Vegas? IBS is the biggest light construction show in the country and, for NAHB members, the centerpiece of Design & Construction Week. IBS is also the time for NAHB’s annual meeting, when the elecWe’ll close November with the Annual Meeting and Awards Banquet tion of our national leadership takes place, as well as dozens of meetin Williston the evening of November 29 at the McCody Concrete ings, awards presentations, and other special events to celebrate the venue. You can count on a night to network and celebrate our achievements of members all over the country. IBS is one of the best accomplishments this past year along with recognizing those who attending events from representatives across North Dakota and we instand out from the crowd with the prestigious awards of Builder of vite you to join us on Tuesday, February 19 for the state sothe Year, Associate of the Year, BEAM, and Association of the Year. cial. Registration is now open, and you can learn more by visiting http://www.buildersshow.com/Home.

I hope to see you there.

Warm wishes to you and yours, Kim Schneider

Dan

Back your PAC … your PAC backs you! NDAB-PAC is the North Dakota Association of Builders’ Political Action Committee. It is a non -partisan political action committee that provides support for candidates who are friends of the building industry. Contact NDAB at (800) 326-4746, (701) 222-2401 or info@ndbuild.com to contribute or learn more!

North Dakota Association of Builders ❖

14

Building Buzz | November 2018

1701 Burnt Boat Drive, Suite 201, Bismarck, ND 58503-0801 ❖

701/222-2401 or 800/326-4746 ❖

www.ndbuild.com

AROUND THE STATE Minot Association of Builders

Western Area Builders Association

Around the State Amber Elizondo, Executive Officer

Elysha Head, Executive Officer 701-852-0496 | minotab.com

| willistonbuilders.com Bismarck/Mandan HBA for donating a Decorating Services, 701-572-5744 Top Recruiter; Ken for ourAssociation new Executive!

Krajsa, Bell State Bank & Trust, Top • The 2018 ParadeOfficer of Homes was a hit! Eight homes were • Exciting news Willistoncomputer Area Builders has proudly Dot Frank, Executive Spike; George Fraza, Blue Cross Blue  Divide, Home show booths are being now! open to the public from 10 AMbmhba.com to 4 PM on September 16th. been serving Williams, Burke, Mountrail andsold McKenzie 701-222-2400 Shield of ND, Top New Spike; Ken Krajsa January 8th and is thehave deadline for our Attendance was strong and the MAB is looking forward to the Award. HBC granted counties.

We are not just Williston officially changed Cornerstone $12,500 preferred vendors.Association!

Home show is April 15  2019 The Parade.

BMHBA has been busy following our name to the Western Area Builders in scholarships to local high school – 17, 2016 ordinance updates in Bismarck and students and college students in or Jackie@willistonbuilders.com • The BattleBurleigh of the Builders Blood Drive made its way to Minot • 2019 Home and Gardencontact Show planning has begun! We are for Mandan, and Morton Counties. planning on enrolling in the construction questions. are reviewing and updating dated onAllOctober 19th. Final numbers will be released soon! looking to add more “Kids” items at the event.

Kids will get the programs. codes. Eyes are currently on permit cost  Our December General Membership parents in the door!  The HBA of F-M held a PAC Social with • Join the MAB Decemberstandards.

6th at Gravel Products for the changes andon development meeting will be held on the 17th special Bash!

Attendees will celebrate the past year andguest will Jerry Howard to talk about  Builders A housing analysis conducted

by Bismarck issues NAHB is working on in D.C. and NDAB is Proud to Announce the 2018 Professional find the winners andout Mandan outlinesof a the needannual for an awards. how they tie in locally. The event was a Thank you so much to our Annual additional owner-occupied Builders in attendance.

• Planning for7,786 the 2019 Home andhomes Garden Show hassuccess begun!with 75 members Banquet Sponsors! Your support by 2030. The HBA is working on a task Look details coming soon!  Just under 20 members attended a Lunch forcefor to more explore implementation of the helped to put on a great event! We Don Dabbert Jr.-Dabbert Customus Homes Session with local building officials to talk study’s recommendations. had a great crowd and a fun evening about the latest issues in residential Dickinson Area Builders Assoc  Members elected a new Builder board celebrating the year end and Todd Williams-Todd Williams construction. member at Executive the Fall GMM on Nov. 24 to fill Lindsay Lange, Officer recognizing all our amazing Award  The New Year Celebration & City Night is Past President Vance Vetter’s seat. The winners. We are already looking 701-483-0044 | dickinsonareabuilders.com Construction, LLC on Jan. 28 at the Radisson in Fargo.

2016 board of directors will be sworn in at forward to doing it all again next year the Annual on this Jan. year’s 14.

• Planning hasBanquet begun for Christmas party.Mayors DABAfrom is Fargo, Moorhead, West in Bismarck!

Mikewill Workman-Jordahl Custom Homes Fargo, Dilworth & Oxbow be in a Teacher”.

Allallproceeds at the party will  “Adopting The BMHBA welcomes membersgenerated to attendance and participate on a mayoral goattend towards school supplies for Dickinson area teachers. a Lead Renovator and Lead panel. We will also have special guest Al Bon Construction, Inc. Charles Bon-C’est Renovator Initial and Refresher course Jaeger,inSecretary of State. If you would • We have moved offices!

The DABA office is now located the on Nov. 30 and Dec. 1, respectively. visit the events Hanson-Hanson Bros., Inc. basement of the Chamber Commerce building. like to attend, please Vern Visit bmhba.com/events toof register. calendar at www.hbafm.com.

Dickinson Area Builders Assoc.

Eric Berg-Eric Berg Construction, Inc. Platinum Sponsors—Kuntz Builders, Betty McDonald, Executive Officer Inc.Productions and Winn Construction, Inc. Michael Bullinger-Western 701-746-4536 forxbuilders.com

Forx Builders Association Home Builders Assoc. of Fargo-Moorhead Irene Schafer, Executive Officer

Bryce Johnson, Chief Executive Officer, 701-483-0044 dickinsonareabuilders.com 701-232-5846 | hbafm.com



Our regular GMM was held at the Eagles Jason Eid-Eid-Co HomesSilver Sponsor—ProBuild  There was good attendance at Slate • The HBA F-M's final meeting Club on of November 11 member with a moment of of the year was Oct. 25.

Interior Design’s November Builders after

silence honoring our veterans.

NDAB-PAC • HBA of F-M Remodelers Council members engaged in Thank you Alissa.

Tom Spaeth-Accent Kitchen & Bath Reception Sponsor—Bosch Hours.  community Our Home Show committee is busy Lumber Co. service at the end of August to build ramp for a Builders after Hours will be  aThe December planning ourstage-four Home Show in April, lung cancer, bone Mark Committee Spriggs-M and & J Construction, Inc. man fighting small-cell cancer hosted by and the Membership updating and adding new features.

Banner Sponsor—Roers West, LLC the Board of Directors at Keith’s Security liver cancer.  Our main focus right now is on World. Jim Bisson owner of Keith’s Lock & Tyrone Leslie-Heritage Homes • The Parade of Homes and Remodeled wrapped Key will be retiring the end of December theFall State Meeting here in Dickinson.

We Home Tour upare thelooking first weekend October. were over 54 andhomes we will be helpingTodd him celebrate forward toinmaking thisThere a Halle-T &this S Custom Homes, Inc. you to the NDAB 2015 Also, Thank milestone. special night for Arnold Karsky as he is and 5 remodel projects.

Partners! We truly appreciate your installed as our State President.  Our Home Design andRobert Garden Show will Leslie-Designer Homes and we have enjoyed serving support  Builders Following that, we also busy planning our be held April 1, 2 & 3 at the Alerus Center. you throughout the entire year!

Forx Association annual Christmas Party. Newly elected Zach-Zach Construction, Inc. Stacy Anderson, Executive Officeis busy with Minot Association ofCharles Builders Vice President, Val Voelkering 701-746-4536 | forxbuilders.com Executive Officer her committee putting final touches to a John Gunkelman-Dakota Construction very special evening at the Elks Club. minotab.com • Forx Builders Association hosted their annual701-852-0496 General  Membership We would like to take on thisMonday opportunity to Meeting October 8th.

There we GregOpen Krueger-Krueger  We are having a “Holiday House” for Construction extend an invitation to Kim Heatherof the Year. recognized our Builder andand Associate The winners here at the office December our members and other associations to attend our Robert were Brett Thoreson of Vreeland Remodeling and15th Aaron from noon-7pm with foodKochmann-Kochmann and Christmas party.

Gold Partner - Montana Dakota Utilities Rosten of Grand Forks Abstract & Title Company beverage.  Merry Christmas and Happy New Year to Brothers Homes, Inc. Silver Partners - Bismarck-Mandan everyone! 6th is not only election day but also • November the BattleArea of theBuilders Association Williston Home Builders Association, Dickinson Builders Blood Drive in Grand Forks! We are reminding Janna Lutz, our Executive Officer Gary Orth-Cornerstone Area Specialties Builders Association, Home Builders members to take time to vote and help save a701-572-5744 life! willistonbuilders.com Bryce Johnson, Executive Vice President Association of Fargo-Moorhead, & Heather Solberg—Platinum Homes • On November 17th, Northland Custom Woodworking will be 6 hbafm.com 701-232-584 Northern Plumbing Supply  WABA welcomes new incoming board hosting the Associations 2nd Annual Bean Bag Bonanza: Bean members: Lance Bevier of Tractor and  Bag Thank you to everyone whoCook-off! attended our Tournament and Chili Bronze Partners - Bell State Bank & Equipment Co., Joan Mainwaring of Awards Gala & Annual Meeting. The HBA NDAB isand proud to announce a NEW programMinot this American State BankThe and Trust Co., Trust, Forx Builders Association, • Forx Builders Association Home Design & GardenBob Show will of F-M celebrated award winners and Radermacher of year Bakkenfor Contracting.

Association of Builders, ND Guaranty & our Associates. Apply Now! with over 200 22-24, of its 2019. Registration bescholarship held at therecipients Alerus Center March  Mark Schneider, LJA, was sworn in as our Title Co., ND Housing Finance Agency, members.

The awards went to Clay is open!

For more about NDAB’s Builders Program incoming WABA President at ourinformation Annual ProBuild, RDO Equipment Co., & Williston Dietrich, Dietrich Homes, Inc., Builder of contact Sara Frank: sara@ndbuild.com or 701-222-2401.

Meeting in November.

Area Builders Association the Year; Paul Krabbenhoft, Coldwell Banker First Realty, Associate of the Year; Heritage Homes, BEAM; Dan Beecher, Foam Doctor’s LLC, Extra Mile; John Koerselman, Red River Drywall &

www.ndbuild.com

 

Top Spikes were also recognized: Bill Murphy and Dave Nordenstrom became Life Spikes in 2015!

Special thanks to Dot Frank and the

North Dakota Association of Builders

 December 2015 November 2018 | Building Buzz

15

PRSRT STD U.S. Postage

PAID 2600 Gateway Ave., Ste. 1 Bismarck, ND 58503

UPCOMING BMHBA EVENTS Annual Dinner - 1/18/2019 Builders, Beans & Beer Chili Cookoff - 2/21/2019 42nd Annual Home Show - 3/15 - 3/16/2019

Permit #72 Bismarck, ND 58501

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