November 2015 Building Buzz

Bismarck-Mandan Home Builders Association

BUILDING Buzz November 2015

2015 Fall Parade of Homes Winners Congratulations to the builders who were selected best of the best.

2016 HOME SHOW

FEB. 19 & 20, PAGE 5

Fall Building Officials Roundtable, page 8 Non-Conventional Financing on the Rise, page 10 Get to Know BUILD-PAC, page 11

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

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

2600 Gateway Ave., Suite 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730

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

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

Publisher/Editor: Dot Frank Layout Editor: Michael L. Quinn

2015 Board of Directors PRESIDENT Drew Knutson Knutson Homes, Inc. Phone: (701) 258-3464

Cover Photos K & L Homes, Inc. www.k-lhomes.com

1ST VICE PRESIDENT Greg Zenker Ferguson Enterprises Phone: (701) 663-2446 2ND VICE PRESIDENT Shannon Reichenberg Diversity Homes Phone: (701) 220-8177

Susie Franklin Capital Credit Union Phone: (701) 255-0042 Nathan Jones Tollberg Homes Phone: (763) 205-2037

Parker Pladson Venture Building Co. Phone: (701) 290-6734

PAST PRESIDENT Vance Vetter Vance Vetter Homes Phone: (701) 751-8218

SECRETARY/TREASURER Lynn Klein Gate City Bank Phone: (701) 355-7633 Paula Haider Haider Glass Specialties Phone: (701) 250-6787 Chad Moldenhauer K & L Homes, Inc. Phone: (701) 258-4584 Jeff Sattler Sattler Homes Phone: (701) 255-7628 Bill Schmid Townsquare Media Phone: (701) 250-6602

Sundquist & Asche Join Bianco Realty Bianco Realty is excited to announce the newest REALTORS速 to join their company: Kim Sundquist and Amy Asche. Kim and Amy look forward to helping you with all your Real Estate needs, achieving your dream of home ownership and providing a Tradition of Excellence!

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Building Buzz | November 2015

KIM SUNDQUIST

AMY ASCHE

New Members & Anniversaries September 2015 New Members Alliance Real Estate | Jamie Sorenson Real Estate

Dakota OutdoorScapes | Jon Rick www.NDScapes.com | Landscaping

G&G Drywall | Carlos Garcia Paint/Wall Coverings (Retail Dealership) | Paint/ Wall coverings | Drywall Installation

Time to Renew!

Members with October Anniversaries. Renew by November 30, 2015.

A+ Sunrooms | Larry Towne ABC Seamless of Bismarck | Paul Barnum www.abcseamless.com | Building Materials Lumber (Retail Dealership) | Roofing/Siding/Sheet Metal Work All Seasons Roofing | Robert Pulver Roofing/Siding/Sheet Metal Work

Meridian Land Surveys | Michael Zimny www.meridianlandsurvey.com | Land Development Land Surveyor

Tollberg Homes | Nathan Jones www.tollberghomes.com | Single Family General Contracting

Verity Homes of Bismarck - Rory Anderson www.verityhomes.com | Multifamily Building (Condo/Coop Units)

Twin Cities Design, LLC | Doug Hanson Single Family General Contracting

Odorox Midwest | Brandon Leingang www.odoroxmidwest.com | Remodeling-Residential Plumbing/Heating/Air Conditioning

B.L.A.K. Jacket | Randy Monzelowsky www.B.L.A.K.jacket.com

Bismarck-Mandan Development Assoc.

Brian Ritter www.bmda.org | Trade Association/Non-Profit Century 21 Landmark - Amy Hullet Land Development | Real Estate

Glasser Images | Jack Glasser www.glasserimages.com Computer Products and Services | Marketing/ Advertising or Public Relations

Truss Systems, Inc. | Wayne Friesz www.trusssystemsnd.com | Building Materials Lumber (Retail Dealership) Venture Real Estate | Kyle Leftwich www.venturend.com | Real Estate

Sattler Homes, Inc. | Robb Sattler www.bismarckbuilder.com | Single Family Spec/ Tract Building | Remodeling-Residential

Waste Management of ND, Inc. | Mitch Dahlstrom www.wm.com

Scott D. Berger Construction | Scott Berger Single Family Spec/Tract Building

Western Steel & Plumbing | Meghan Aberle www.western-steel.com | Plumbing/Heating/Air Conditioning

Silver Ridge Contracting | Dustin Fischer Single Family General Contracting | RemodelingResidential

Bismarck-Mandan Permit Reports Permit Type

September 2015

BISMARCK - www.bismarck.org

September 2014

Single Family Multi-Family Commercial

28 2 25

Value - $5,494,058 Value - $4,613,475 Value - $8,128,198

Units – 28 Units - 54 Units – N/A

Single Family Multi-Family Commercial

52 0 4

Value - $8,973,969 Value – $0 Value - $260,700

Units - 52 Units – 0 Units – N/A

Single Family Multi-Family Commercial

16 1 1

Value - $3,730,771 Value - $4,320,000 Value - $850,000

Units - 16 Units – 48 Units – N/A

Single Family Multi-Family Commercial

12 2 4

Value - $2,744,338 Value - $727,885 Value - $3,540,000

Units - 12 Units - 2 Units – N/A

Single Family Multi-Family Commercial

3 0 0

Value - $407,251 Value - $0 Value - $0

Units – 3 Units - 0 Units – N/A

Single Family Multi-Family Commercial

5 0 0

Value – $663,985 Value - $0 Value - $0

Units - 5 Units - 0 Units - 0

Single Family Multi-Family Commercial

5 0 0

Value - $1,612,152 Value - $0 Value - $0

Units - 5 Units - 0 Units – N/A

Single Family Multi-Family Commercial

11 0 0

Value - $3,755,368 Value - $0 Value - $0

Units - 11 Units - 0 Units – N/A

Single Family Multi-Family Commercial

4 0 0

Value - $1,751,127 Value - $0 Value - $0

Units - 4 Units - 0 Units – N/A

Single Family Multi-Family Commercial

5 0 0

Value - $1,282,000 Value - $0 Value - $0

Units - 5 Units - 0 Units – N/A

MANDAN - www.cityofmandan.com

LINCOLN - www.cityoflincolnnd.com

BURLEIGH COUNTY - www.co.burleigh.nd.us MORTON COUNTY - www.co.morton.nd.us

November 2015 | Building Buzz

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President’s Letter

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nother building season will soon be behind us. It turned out to be a great year for getting things done. I think it’s safe to say all contractors and crews appreciated the weather.

I’d like to thank all builders who participated in the Fall Parade of Homes and congratulate those who walked away with an award at the Fall Awards Mixer (see page 2).

The 2015 Parade was a success in many measurements: • 2,654 adults came through 40 doors.

• Attendance was up 4% over year prior.

• We set a new record number of homes.

• 3 homes were sold as a result of the event.

• 75% of builders reported steady or busy traffic.

The Fall Parade of Homes is one of three events that produce non-dues revenue to keep the association running; we also rely on a profitable Spring Parade of Homes and Home Show to pay our bills and work on behalf of all members. Thank you for helping us pull off another great community event.

Drew Knutson Board President

The post Parade celebration was hosted at the Bismarck Ramada. The evening included a presentation by the Bowtie Economist Elliot Eisenberg. BUILD-PAC contributors were treated to an exclusive VIP room prior to the event. Keep an eye out for additional VIP events and consider making your PAC contribution to be a part of them in the future.

The Government Affairs Committee hosted its bi-annual Building Officials Roundtable last month. Top topics included floodplain building requirements, use of the online permitting program and the 2015 IRC adoption. The committee continues to keep a close eye on ordinances that impact us.

This month we’ll gather again for the Fall GMM. Please make an effort to attend this meeting to help choose the association’s newest leader. Past President and long serving board member Vance Vetter’s term is up and you’ll help us decide who takes his seat. The event is Nov. 24 at the Elks. Registration is open online at bmhba.com/events.

Finally, a few other events that you’ll want on your radar include:

1. The 2016 Home Show. Feb. 19-20 at the Bismarck Event Center. Contracts were mailed and are available online at bmhba. com.

2. Holiday Open House. Dec. 10 at 1603 Main Event. Amazing event last year, and even better this year.

3. International Builders Show. Jan. 19-21. World-class event with a presidential debate on the agenda.

Thank you for helping us end the year on another high note through your continued sponsorship support and event participation.

See you at the Elks, Drew Knutson President

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Building Buzz | November 2015

North Dakota: Large master room, 9% of listings

See You at the Home Show!

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Greetings exhibitor,

The Bismarck-Mandan Home Builders Association is excited to present the 2016 Home Show. We’re on the heels on the association’s most successful show and we’re pulling out all the stops to continue to climb. Here are a few things our vendors can expect in 2016:

2016 BMHBA Home Show February 19th & 20th 2016 BMHBA Home Show Dates & Times

We appreciate your interest in the BismarckMandan Home Builders Association Home Show and look forward to seeing you in 2016!

The Bismarck-Mandan Home Association 2015 exhibitors have Builders until Nov. 2 to recommit to their booth space. After that time we will open the is excited to present remaining the 2016 Show. spacesHome to all interested parties.We’re on  The continuation of Free Friday.  The return of the Exhibitor VIP Room.

Please note that amost block of rooms have been show the heels on the association’s successful  The transition to a 2-day event. reserved at the Expressway Suites (888-774-5566), Inn (701-222-2900) Fairfield Innto (701-223and we’re pulling out Expressway all the stops to continue climb.

While some things have changed, others remain the 9293) and Radisson Hotel (701-255-6000) through same. Vendors will continue to have access to free Feb. Referencecan the BMHBA Homein Show Here are a few things our1, 2016. vendors expect 2016: WIFI and four admission tickets per booth and when making reservations. spectators will continue to benefit from free parking and the $2 admission discount on Saturday.

Regards,

• The continuation of Free Friday.

Enclosed you will find the layout for the 2016 Home Show.

Randy Tank

• The return ofRandy theTank, Exhibitor VIP Room.

Chairman 2016 BMHBA Home Show

• The transition to a 2-day event.



Friday, Feb. 19 .............. 3 p.m. to 9 p.m.

While some things have changed, others remain the  Saturday, Feb. 20 ......... 10 a.m. to 6 p.m. same. Vendors will Free continue to have access to free WIFI Family Night on Friday | $5 admission Saturday and four admission tickets per booth and spectators will continue to benefit from free parking and the $2 Home Show Tips & Tricks From the HBA of Greater Little Rock admission discount on Saturday. 

Have an open booth. Don’t place your table across the front/entry.

SELL, SELL, SELL. Don’t forget you can sell items from your booth and don’t bag items. Let everyone see what people bought from you.

Be dynamic and engage.

Stand up and get noticed. Get rid of the chairs.

Use carpet or special flooring in your booth.

Be kid friendly - basket of crayons, coloring books, balloon animals, etc.

Contracts are available online at bmhba.com under the Home Show tab. 

   

Did you know? Single-family homes built for rent increased to 8,000 starts in the second quarter of 2015, down from post-recession highs. For more analysis, the Eye On Housing blog provides members with data on economic and housing related topics.

November 2015 | Building Buzz

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From the Desk of Ray Zielger

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Reprinted with permission from the September 2015 Burleigh BPZ Newsletter

hen the Burleigh County Building/Planning/Zoning Department was developed it was tasked with the duty of cleaning up the Burleigh County Ordinances in various areas. This task involves many hours of research, writing, rewriting and fine tuning of the ordinances. Several ordinances are still being worked on, but some have been through the Burleigh County Planning Commission for review and suggestion, a public hearing and are now awaiting approval of the Burleigh County Board of Commissioners. While some of the ordinances just needed to have small changes, several have been reworked and may affect contractors in the County.

flood waters in a variety of ways.

Many Planning Commissioners were concerned that the building would not be covered by flood insurance if not raised. Representatives from the insurance industry, as well as FEMA, were contacted to verify if this would have an effect on coverage. It was concluded since flood insurance only pays a set amount on flood claims, it would have little if any effect on the property owner’s ability to claim the maximum amount available. The Planning Commission passed the ordinance change to A concern of many people building in the not require accessory building to be built 2’ floodplain is the need to raise nonresidential above flood stage. structures, such as accessory buildings, Another concern was the fees paid two (2) feet above the flood stage. This for plumbing permits in the County’s ordinance has added additional costs to jurisdiction. The policy now is to have the the property owner with questionable plumbing contractor give a bid amount for a benefits. Besides the additional costs, there specific job and the permit is issued by that were concerns whether the additional amount. It was at times confusing and time height was needed, since the building was consuming. It was decided to replace our not a habitable living unit and the building formula to match the formula used by the could be constructed to accommodate ND State Plumbing Board. This will make it

easier for contractors and builders alike.

Several other ordinances were changed and adjusted to fit the modern day builder and make things consistent with the State Building Code. A complete list and changes to the ordinances are available for viewing on the Burleigh County website.

This also brings to mind a new addition to the Building/Planning/Zoning area of the County’s website. We now have added an area to publish the Planning Commission Public Hearing Schedule. If there is an item on the Planning Commission schedule for a public hearing it will be posted on the website before the notice is published in the Bismarck Tribune. This will give the public a chance to review the hearing notice online before the meeting.

Rewriting and redrafting ordinances was just one of the many tasks that were given to the Building/Planning/Zoning Department when It was established on January 1, 2014.

One of the goals was to make the overall process easier and faster for the public and builders in the county. We are always open to suggestions and ideas. Feel free to stop in our office and talk to Marla or myself with your suggestions.

MANDAN COMPLETES MUNICIPAL RECODIFICATION The City of Mandan recently contracted with Municipal Code Corporation (Municode), a company that codifies and publishes municipal laws and ordinances, to recodify the existing municipal code. The recodified version of the City’s municipal code went into effect on Oct. 1, 2015.

Municode’s attorneys reviewed the existing code and ordinances giving emphasis to the City’s concerns and

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Building Buzz | November 2015

looking for conflicts with state law, case law relating to the City’s ordinances, Home Rule Charter and constitutional principles. Only minor changes were made to existing requirements.

City staff is working to further update the code to reflect current procedures and standards. New features include mobile friendly access to the municipal code, storage and linkage of ordinances already codified,

and the ability to link newly enacted ordinances to the section of the code being amended within 24 hours. A link to the new code is available at www.cityofmandan.com in the City Government section.

CITY/COUNTY NEWS OLD RED TRAIL IMPROVEMENTS SCHEDULED IN 2016 The City of Mandan will make improvements to an area of Old Red Trail between Highland Road and 40th Avenue NW in 2016. The project will improve the roadway structure and accommodate increased traffic volume associated with new development. Improvements include widening the roadway, a 12-inch water main expansion, introduction of a left turn lane and the addition of storm sewer pipe and curb and gutter. In addition, a multiuse trail, required for the overall project to receive federal funding, will be extended along the new roadway.

The project originally extended to 47th Avenue NW, but boundaries were reduced when the overall estimate for project cost came in significantly higher than anticipated. Total project cost is estimated at $5.5 million. The N.D. Department of Transportation pledged $3.2 million in federal funding administered through the Transportation Improvement Program (TIP) to the project. Other funding sources will include city sales and property tax dollars and special assessments to benefiting properties.

IMPROVEMENTS PLANNED FOR HIGHWAY 6 & 19TH STREET SW

A street improvement project planned for the intersection of Highway 6 and 19th Street SW aims to improve the safety of the intersection. The project will introduce turning lanes and provide lighting to illuminate the roadway.

Construction is expected to begin in 2017. The total project cost is estimated at $509,000. Federal funding will provide for 90 percent of the total project cost or about $458,000. The state will contribute 10 percent, or about $51,000. The state safety project does not require any local cost share responsibility.

We are excited to have Jamie Christensen and Jennifer Jordan join our team of Real Estate Professionals. Call Jamie and Jennifer to answer all of your Real Estate Jamie Christensen Jennifer Jordan questions.

(701) 391-5383 (701) 370-9008 201 West Front Avenue 701.223.6654 www.century21morrison.com

November 2015 | Building Buzz

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BMHBA NEWS BOWTIE ECONOMIST AND PASTA The Fall Awards Mixer celebrated the award-winning builders of the Fall Parade Homes. Hosted by the Events Committee, the event featured guest speaker Elliot Eisenberg, Ph.D.

Eisenberg, a nationally acclaimed economist and public speaker, provided an economic update with comical flair.

Eisenberg said the nation is strong in services spending, but needs to pick up manufacturing revenue.

To view his presentation, visit https://goo.gl/nNjCRS.

Elliot shared stats that confirm the state is slowing down, but he also shared how impressed his was with North Dakota’s economic position regardless of what’s recently happened with oil.

“You need to tell other people the real story,” he said. He stated that the only news being reported about North Dakota is that we’ve gone bust and there are piles of abandoned RVs throughout the state. Elliot recommended telling the nation that we still have the lowest unemployment rate, thousands of jobs and opportunity to bring in research.

FALL BUILDING OFFICIALS ROUNDTABLE SPARKS ACTION The BMHBA Government Affairs Committee hosted its biannual building officials event on Oct. 22. Close to 50 participants filled the room at the Public Works Building to talk about the 2015 construction season, voice concerns, share ideas and seek out guidance for 2016.

Builders urged officials to reduce the paperwork and continue to streamline building permit approvals inspections. The group shared that while the requests for additional information and documents seems trivial, it all adds up to a time consuming process that prevents them from getting the buildout done.

Guests also requested that officials fully use the online systems that were recently launched and to respond in the same manner requests are made. For instance, if a question is submitted through the web-based program, respond via the web-based program.

Builders did thank officials for a faster turnaround and response as a result of the new online programs. They also asked for a list of common code violations to review so that they can work to eliminate them. The next Building Officials Roundtable will be in the Spring of 2016.

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Building Buzz | November 2015

FALL PARADE OF HOMES SHOWCASES NEW CONSTRUCTION

LEGISLATORS AND MEMBERS CONVERGE AT VIP EVENT

Twenty-seven builders opened the doors to 40 homes during the 2015 Fall Parade of Homes. Mother Nature delivered a kind weekend as builders ushered more than 2,460 adults through all homes.

“The committee and staff really pulled together to create an experience that benefited both the builders and spectators,” said Parade of Homes Chairwoman Lindsey Matter. “We always work to attract more spectators and I’m excited to share that we exceeded last year’s attendance by 4%.”

The Fall Parade of Homes was hosted over four days in September. According to a builder poll after the Parade, three homes sold as a result of the event and traffic was busy by the standards of 44% of them.

“We improve with each Parade. This year we started a redesign of the Parade magazine, which we are working to transition to a coffee-table quality piece,” said Matter.

(Winners pictured on page 2).

The association hosted roughly 30 members at the VIP BUILD-PAC Social on Oct. 8. Participating members were able to mingle with Rep. Becker, Rep. Karls, Rep. Larson and Rep. Laning.

The event was open to BUILD-PAC contributors. It was a great opportunity to share with officials the pressing issues impacting new home construction and ownership. Learn more about PAC at nahb.org/buildpac.

Bismarck-Mandan Housing Demand Analysis Released The Cities of Bismarck and Mandan conducted a Housing Demand Analysis to determine both the present and future housing needs of the two communities for the next three, five, ten and fifteen years.

The study was designed to provide a measured assessment of present and future unmet housing demand, with a focus on providing a deeper understanding of short-to-mid-term housing demand. The report is intended to offer community leaders a basis for thinking about community-specific housing policies and affordable housing strategies.

The analysis was conducted by Hanna:Keelan Associates, P.C. and was a joint effort of both cities that involved community stakeholders and residents in Bismarck and Mandan.

Find the analysis online at http://goo. gl/GmssKa.

November 2015 | Building Buzz

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NATIONAL NEWS

HOW NEW HOMEBUYERS FINANCE THEIR HOMES

NATIONAL NEWS

By Natalia Siniavskaia

NAHB analysis of the Census Bureau Survey of Construction (SOC) data shows that non-conventional forms of financing new single-family home purchases remained elevated in 2014, but their use and mix varied widely across the country. In the West North Central division, only 21 percent of new homes started in 2014 were purchased using non-conventional financing methods. The share was twice as high in the West South Central division, 42.5 percent, and exceeded 41 percent in the Mountain division.

NATIONAL NEWS

For the first time since 2007, cash purchases became the most common type of non-conventional financing used for purchasing new single-family homes. For homes started in 2014, cash purchases accounted for almost 13 percent of the market. New England registered the nation’s highest share, with one in three new homes started in 2014 purchased with cash. The Middle Atlantic and East North Central divisions registered the second and third highest shares, 18 and 16 percent, respectively. At the other end of the spectrum is the East South Central division where only 8 percent of new homes were cash purchases.

The high prevalence of cash financing in the New England, East North Central and Middle Atlantic divisions can be partially explained by the popularity of custom homebuilding in these divisions, with all three claiming the top three custom home market shares in 2014.

Custom homes are more likely to be financed with cash, especially if built by the owner acting as the general contractor. In 2014, one in three custom homes built by the owner were financed with cash, while less than 9 percent of spec homes were purchased with cash.

Mortgages insured by the Federal Housing Administration (FHA) made up close to 10 percent of the market. Following the implemented decline in FHA loan limits that went into effect on January 1, 2014, the share of FHA-insured loans dropped and they

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Building Buzz | November 2015

lost their status as the most prevalent form of non-conventional financing of new home purchases. As we had predicted last year, the Pacific, Mountain and South Atlantic divisions were among the hardest hit by the implemented declines. FHA-insured loans lost between 4 to 5 percent of the market in these divisions.

Interestingly, markets in these divisions reacted differently to filling the void left by the lower FHA loan limits. In the Mountain division, mortgage loans guaranteed by the Veteran’s Administration (VA) grew in importance, gaining additional 5 percent of new homebuyers.

Their share came close to 13 percent, more than double the national average of 6 percent. The South Atlantic division is the only other division that reported the above national average share of the VAguaranteed loans, 9 percent.

In the Pacific and South Atlantic divisions, there was a shift towards cash purchases. In the South Atlantic and West South Central divisions that also registered a steep decline in the share of the FHA-insured loans, new homebuyers turned to other types of non-conventional financing methods such as the Rural Housing Service, Habitat for Humanity, loans from individuals, State or local government mortgage-backed bonds and other. In the West South Central division, the share of other types of non-conventional financing more than doubled and exceeded 11 percent in 2014.

The South Atlantic division registered the second highest share of 8 percent, also exceeding the national average of 6 percent.

The East South Central division, where more than a quarter of new homes were built in rural areas, reported close to a 5 percent share of other types of financing, most likely through the Rural Housing Service.

The BUILD-PAC Board of Trustees, made up of over 150 members from across the country, met Sept. 28 during the NAHB Board of Directors meeting to approve hundreds of thousands of dollars in contributions to federal pro-business candidates running for office in 2016.

“With the Congress appearing frozen and in a funk moving into the Presidential election cycle, we need to move forward our bipartisan, pro-housing message that housing will lead the economy back, housing creates job, and home ownership creates wealth. We need a full war chest to carry that message,” said BUILD-PAC chairman Fred Hoppe.

GET TO KNOW BUILD-PAC BUILD-PAC, or Builders United in Legislative Decisions Political Action Committee, is NAHB’s political arm. BUILDPAC helps elect the most qualified pro-housing, pro-business candidates to federal office.

BUILD-PAC is bipartisan, supporting both Democrats and Republicans, who help promote and protect the housing industry’s agenda.

In this critical election cycle, it is important to continue to build up BUILD-PAC’s resources, so thanks are due to those members who already contribute to BUILD-PAC. How can you find more information about BUILD-PAC? Visit nahb.org/buildpac.

NATIONAL NEWS

As NAHB’s political action committee, BUILD-PAC helps elect the most qualified prohousing, pro-business candidates to federal office. BUILD-PAC is bipartisan, supporting both

Democrats and Republicans who help promote and protect the housing industry’s agenda.

NATIONAL NEWS

BUILD-PAC READIES FOR ELECTION CYCLE

A BUILD-PAC investment is a lot like insurance. You can’t see it, you can’t touch it, you can’t even smell it. But you will be very happy you invested when you need it to work for you.

Our home building industry, whether it’s new construction or remodeling, is heavily legislated and regulated. Left to fend for itself, building would fall prey to the countless environmental groups and “the Not in My Backyard” NIMBY’s of the world. All who live comfortably in a home, you guessed it, constructed by a BUILDER and utilizing products and services of ASSOCIATES. It’s our industry, it’s you career and future. Fight for it or lose it. - Michael Kurpiel

NATIONAL NEWS November 2015 | Building Buzz

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UPDATE ON NAHB’S ADVOCACY INITIATIVES

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t any given time, NAHB’s advocacy team, including staff from government affairs, legal affairs, housing finance, regulatory affairs and communications, is working on scores of issues that can have a significant impact on members. Below is a status update on several critical issues that we discussed last month at the NAHB Fall Board meeting.

Court Ruling Suspends New EPA Water Rule NAHB has been on the forefront of fighting the “waters of the U.S.” (WOTUS) rule issued by the Environmental Protection Agency and the Army Corps of Engineers ever since the proposal was first introduced. We have taken action on the legal, legislative and regulatory fronts to put a stop to this ill-advised rule.

The rule went into effect on August 28, but we are pleased to report that the U.S. Court of Appeals for the Sixth Circuit enacted a nationwide stay on Oct. 9.

NAHB opposes this rule because it makes millions of additional acres subject to federal regulation under the Clean Water Act. The rule raises housing costs and adds unnecessary regulatory burdens to small businesses. Even the Corps of Engineers — which is charged with administering and enforcing the rule — raised objections with EPA over the rule, which EPA ultimately ignored.

NAHB Fights Wide Range of Labor Regulations

NAHB is fighting several proposed workforce regulations, including the Department of Labor’s (DOL) draft regulation on overtime for “white collar” employees. Starting next year, this proposal would raise the “exempt” salary level for executive or administrative staff from $23,660 to $50,440. Under the regulation, more than 110,000 construction supervisors may be eligible for overtime pay.

NAHB CEO Jerry Howard has spoken up against the rule publicly, and NAHB submitted comments explaining how the regulation could harm small businesses.

DOL has also been focused on the classification of independent contractors.

The agency requested $10 million in FY 2016 for worker misclassification enforcement and detection efforts. The funding was rejected, but DOL continues to pursue this issue. The agency has put forth a guidance document on worker

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Building Buzz | November 2015

classification, which may trigger litigation.

had a dramatic impact on home building and development.

Another issue is the National Labor Relations Board’s (NLRB) decision in Browning Ferris Industries, which expands the definition of “joint employer” and erodes long-established protections afforded to neutral employers, such as builders. Legislation supported by NAHB was introduced in the House that would protect the traditional joint employer definition.

NAHB members voiced serious concerns about the potential impact on federal permits and programs that builders and developers use. As a result of our efforts, the Army Corps will not be applying the floodplain requirements to Clean Water Act wetland permits. Similarly, FEMA will not apply the requirements to the National Flood Insurance Program, and HUD has indicated that the standard will not apply to FHA insurance of single-family mortgages.

To help members navigate this topic, NAHB created a state-by-state guide that examines the laws determining whether a worker is an independent contractor or employee.

OSHA Delays Enforcement of Confined Spaces Rule

In a victory for single-family home builders, the Occupational Health and Safety Administration (OSHA) announced Oct. 2 its decision to delay enforcement of the new Confined Spaces in Construction Standard until Jan. 8, 2016.

Though the ruling became effective Aug. 3, OSHA has agreed to refrain from issuing citations to any employer that is making good-faith efforts to comply with the standard. This temporary enforcement policy applies to construction of singlefamily homes, duplexes and townhouses in federal jurisdictions. OSHA-approved state plan enforcement dates may vary; for more information visit www.osha.gov/dcsp/osp.

NAHB Actions Limit Impact of Federal Flood Risk Management Standard

NAHB scored an important victory for home builders when it convinced the Army Corps of Engineers to back off on sweeping new flood plain standards that could have

In January, President Obama issued an Executive Order to expand federal floodplain management requirements far beyond the 100-year floodplain.

Building Codes Require Ongoing Vigilance

NAHB is very involved in the ongoing effort to keep codes sensible and costeffective. At present, the International Code Council is in the process of reviewing thousands of proposed changes to the 2018 version of the codes.

Earlier this year, after careful review by our committee members and codes staff, NAHB took positions on 262 proposals. Of those, 129 did not receive public comment, and NAHB won on 82 percent of those proposals.

The ICC held public comment hearings in Long Beach, California, in early October.

The NAHB delegation to the hearings included NAHB First Vice Chairman Ed Brady, Codes Committee Chairman George Schluter, Codes Committee Vice Chairman Phil Hoffman, and the NAHB staff codes team.

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

‘HOLD HARMLESS’ PERIOD ON NEW MORTGAGE LENDING RULES

NEW SLAB INSULATION MAKING BARRIER-FREE HOMES MORE AFFORDABLE compared to a home with a basement.

A Michigan home builder is creating more options for buyers with tight budgets, “Technology-wise, it may seem kind and particularly for those who have of old school, but it’s got a different twist mobility issues. that makes is so much more consumer and Until recently, most bargain-seekers in colder regions of the U.S. had only two options to consider when buying a home: a modular home that offers economy, but usually requires steps or a ramp; or a traditional home built over a basement or crawl space, which is often more expensive.

That short list of options grew recently when Sable Homes in Rockford, Mich., implemented a new method to build barrierfree homes on concrete slabs, despite the region’s colder temps. The technology – called Freedom Foundation – uses a specially shaped foam that works as a form and border to protect the slab from frost damage, even throughout a typically bitter-cold Michigan winter.

builder friendly to use,” Bitely says. “The shape and design of the foam makes it much simpler to install and build with than if you followed the old method for residential building.”

So far, Freedom Foundation has been successfully used in more than 30 homes.

Bitely says nearly all other homes in the region have basements, so the mindset of buying a home without a basement is just starting to catch on.

However, momentum seems to be building as word spreads about the potential cost savings.

“We’re selling these homes pretty much as fast as we can get them done,” Bitely says. “And it isn’t just older folks who are Barrier-free homes – ideal for the elderly buying them. We’ve seen buyers of all types, or physically disabled – are often hard to find including young people who are looking to and costly to build. But Sable Homes owner buy their first home they find this price point John Bitely says building on a concrete to be extremely attractive.” slab that uses the Freedom Foundation technology can save up to $10,000 over the Sable Homes is building barrier-free homes cost of building a similar-sized home with at lower costs thanks to the Freedom deep footings or a crawl space underneath.

Foundation technology.

The savings can be as much as $15,000 when

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In a victory for NAHB, the House approved bipartisan legislation that would provide a hold-harmless period until Feb. 1, 2016 for those making a goodfaith effort to comply with new mortgage lending rules instituted by the Consumer Financial Protection Bureau (CFPB) on Oct. 3.

Under the new rules the Closing Disclosure must be provided to the consumer a full three days prior to closing, and if there are certain changes during that 72-hour period, the closing could be delayed.

While CFPB recognizes the “significant systems and operational changes” that are required by institutions to comply with the rule, the agency has fallen short of offering a hold-harmless period for the initial months of the new process that NAHB and industry allies requested.

Though the House vote is an important step in the right direction, the Obama administration has threatened to veto the legislation if it reaches the president’s desk.

Visit NAHB’s website to learn more about the new rules and download resources to help you comply.

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November 2015 | Building Buzz

13

NDAB NEWS

Volume XXII, Issue 11

Monthly News from the North Dakota Association of Builders

Waters of the U.S. Update Hello NDAB Members, This month I want to draw attention to a recent update regarding the Waters of the U.S. regulations proposed by the EPA that we have been closely following. NAHB Chairman Tom Woods was our special LeRoy Kurtyka guest in Grand Forks at this time last year, NDAB President and he is at the forefront of working on behalf of our members. We are pleased to highlight this work and will be sure to keep you updated as new developments occur. For questions on this issue, or on any other state or national issue, please feel free to contact me, our Executive Officer, Kim Schneider, or our Government Affairs Committee Chair, Dan Lindquist. Thanks, and I look forward to seeing many of you at the Annual Banquet December 4th in Dickinson!

LeRoy From NAHB, October 09, 2015: The National Association of Home Builders (NAHB) commended the U.S. Court of Appeals for the Sixth Circuit for enacting a nationwide stay of the Environmental Protection Agency’s final regulations that dramatically expand the definition of “waters of the United States” under the Clean Water Act. “We applaud the Sixth Circuit for taking this action to suspend the EPA’s water rule,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. “NAHB has been working diligently on the legislative and legal fronts to overturn this EPA rule that raises housing costs, tramples states’ rights and adds unnecessary regulatory burdens to small businesses.”

As required by law, EPA failed to consult with state and local governments, confer with business stakeholders, comply with the requirements of the Regulatory Flexibility Act or produce an accurate cost-benefit analysis.

In its ruling, the Sixth Circuit stated: “A stay temporarily silences the whirlwind of confusion that springs from uncertainty about the requirements of the new Rule and whether they will survive legal testing. A stay honors the policy of cooperative federalism that informs the Clean Water Act and must attend the shared responsibility for safeguarding the nation’s waters.”

“Our members want to protect the nation’s waters, but we need clear rules,” said Woods. “Today’s court decision is a step in the right direction.”

November 2015

Opportunity to be Involved As the temperatures drop as quickly as the leaves have fallen, it is time to reflect on another successful year for NDAB and start to discuss our plans for the upcoming year.

Those members that make up our Board of Directors, PAC Trustees and various committees are all valued volunteers. We recognize Kim Schneider and appreciate the time they put into helping NDAB Executive Officer with the success of NDAB that takes them away from work and family time. While there are too many members to list individually in this newsletter, they are recognized yearly at our Annual Banquet and their efforts are always acknowledged by Heather Austin, Office and Communications Manager and myself. Working together as a team is what pushes our efforts forward and every single member’s involvement at the local, state and national level is greatly appreciated.

If you are interested in learning how to become more involved in the association, please contact your local Executive Officer or ask a fellow local member. Fresh ideas, new friends and hardworking volunteers are always welcome!

December will be here before we know it and NDAB will be hosting the Annual Banquet and Board of Directors meeting December 3-4 in Dickinson, ND. We invite you to join us on Friday, December 4 while we install our new State President, Arnold Karsky (Dickinson), celebrate and thank our outgoing President, LeRoy Kurtyka (Grand Forks), install our new Board of Directors Members, and celebrate our past year’s achievements as we toast the upcoming year. This is one of many great opportunities to network and meet fellow members from across the state. More information on this great event will be forthcoming and we look forward to celebrating with you!

Have you registered yet for the 2016 International Builders Show (IBS) and Annual Meeting of the Membership being held January 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 election of our national leadership takes place, as well as dozens of meetings, awards presentations, and other special events to celebrate the achievements of members all over the country. IBS is one of the best attended events of representatives from across North Dakota and we invite you to join us. Registration is now open and you can learn more by visiting http:// www.buildersshow.com/Home/

Warm wishes to you and yours, Kim Schneider

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 1720 Burnt Boat Drive, Suite 207, Bismarck, ND 58503-0801 701/222-2401 or 800/326-4746 www.ndbuild.com

14

Building Buzz | November 2015

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

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bmhba.com

The Fall Parade of Homes set a new record for number of homes and grew attendance. 2,465 adults walked through the doors of 40 homes.

The Fall Awards Mixer celebrated the award-winning builders. Judges’ Choice winners included: Diversity Homes, SL, Premier Homes, Inc., D & W Hagen Homes, LLC, Hamilton Built Homes, LLC, Plain View Design Co., Fireside Custom Homes, Rusch Homes, Vance Vetter Homes, K & L Homes, Inc. and Stoneshire Builders. People’s Choice winners included: Builder's Name: Diversity Homes, SL, Premier Homes, Inc., Verity Homes of Bismarck, Plain View Design Co., Paradise Homes, Inc., Joe Vetter Construction, Hallmark Homes, Inc., Venture Building Company and Stoneshire Builders.

More than 30 members mixed at the BMHBA’s VIP BUILD-PAC Social. Special guests included Rep. Rick Becker, Rep. Diane Larson, Rep. Vernon Laning, Rep. Karen Karls and Elliot Eisenberg.

Preparation is underway for the 2016 Home Show, which is Feb. 19-20 at the Bismarck Event Center.

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

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Dickinson Area Builders Assoc.

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

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Attendance was up at our October GMM on October 14th at the Elks Club.

Elected to our Board of Directors for this next year were: Val Voelkering, Heartland Homes; Mike Schwab, Continental Real Estate: and, Nick Gates, West Dakota Mudjacking.

Home Show plans are moving forward.

Approximately 75% of the space available is booked. Home Show dates are Saturday & Sunday, April 9 & 10, 2016.

Our November GMM will be held at the Eagles Club on November 11th.

Our annual Christmas Party will be held at the Elks Club on Wednesday, December 9th.

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

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The HBA of F-M’s Awards Gala & Annual Meeting is Oct. 29. We would like to extend an invitation to other association members. If you would like to attend visit our events calendar on www.hbafm.com, email info@hbafm.com or call (701) 2325846.

The HBA launched its new website in September, visit www.hbafm.com to see the new and improved site!

The Fall Parade of Homes and

www.ndbuild.com

Remodeled Home Tour was a success.

The Luxurious Featured Home raised $4,125 for Home Builders Care of FargoMoorhead Foundation!

During the Fall Board of Directors Meeting, the HBA of F-M was granted $10,000 for NAHB’s State & Local Issues Fund to help towards a campaign to promote the F-M Diversion. The HBA continues to work closely with the Business Leaders Flood Taskforce.

In September the HBA of F-M hosted a lunch session for 45 members on managing customer expectations presented by Dale Carnegie Training.

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We Congratulations to our 2015 award winners: Builder of the Year Bill Knipe, Circle K Builders, Inc.; Associate of the Year Michael Helt, Alerus; BEAM Award Circle K Builders, Inc. and the Hall of Fame Award Loren Abel, Abel Construction, Inc. All the winners are very deserving of their awards and their participation and dedication to the Forx Builders Association is very much appreciated.

The First Annual Chili Cook-Off was a success! All the chili entrants did a great job and everybody’s chili was very good.

We want to thank Applegren Construction, Garon Construction and The Craftsmen for hosting this event. Hats off to the Chili Cook-Off Committee Bill Knipe, Stacy Schumacher, Sarah Newgard and Chip Shea. Canned goods were collected for the food cupboard.

Alissa Larson of Slate Interiors is hosting the November 18th Builders after Hours at her location.

The December Builders after Hours will be hosted by the Membership Committee at Keith’s Lock & Key. Jim Bisson owner of Keith’s Lock & Key will be retiring the end of December so we will be helping him celebrate this milestone.

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

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41st Annual Meeting & Awards Banquet was held on Oct. 13th with City Manager Lee Staab as our guest speaker. 2016 MAB President and board of directors was sworn in by NDAB president Leroy Kurtyka.

Pat & Joe Kraft – Craft Builders, Inc. were named MAB Builder of the Year, Kasper Ziegler, Burdick Job Corps Center was named MAB Associate of the Year. Cindy Snay, Coughlin Construction received the MAB Citizen of the Year Award.

November BAH will be hosted on the 10th by the Burdick Job Corps Center.

North Dakota Association of Builders

Williston Area Builders Association Janna Lutz, Executive Officer 701-572-5744 willistonbuilders.com

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WABA Fall Parade of Homes was a success despite the rain and cold weather: 7 winners were awarded at our October meeting.

Our BEAM award winner for 2015 is Bob Horab from McCody Concrete. Great Job Bob!!

The Board has decided to hire another executive to focus on government affairs and events- we welcome Jackie Weig!!

The membership has voted: This year’s Builder of the Year is Mike Dolbec (Windsong Contracting, LLC) and Associate of the Year is Ken Callahan (MDU)- Congratulations!

Home show dates are April 15 – 17, 2016 and committee is meeting – please contact us if interested.

Our November meeting will be held on the 19th at ACME Tools.

DATE CHANGE! NDAB will be hosting the Annual Banquet in Dickinson, ND this year! Mark your calendars for Friday, DECEMBER 4TH and join us for a night of recognition, networking, and fun. We will welcome 2016 Board Members and give a great send off to those retiring at the close of 2015. There will also be great food, PAC fundraisers, and several other fun surprises. You won't want to miss it! Watch for further details!

Thank you so much to our early Annual Banquet Sponsors! Your support helps us to put on a great event! More opportunities for sponsorship and tickets are available.

Visit www.ndbuild.com or call Heather at 701-222-2401 for more details and to register.

Platinum Sponsor—Kuntz Builders, Inc. and Winn Construction, Inc. Silver Sponsor—ProBuild Also, Thank you to the NDAB 2015 Partners!

We truly appreciate your support and we are very excited to serve you throughout the entire year!

Gold Partner - Montana Dakota Utilities Silver Partners - Bismarck-Mandan Home Builders Association, Dickinson Area Builders Association, Home Builders Association of Fargo-Moorhead, & Northern Plumbing Supply Bronze Partners - Bell State Bank & Trust, Forx Builders Association, Minot Association of Builders, ND Guaranty & Title Co., ND Housing Finance Agency, ProBuild, RDO Equipment Co., & Williston Area Builders Association

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November 2015

November 2015 | Building Buzz

15

PRSRT STD U.S. Postage

PAID Permit #72 Bismarck, ND 58501

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

UPCOMING BMHBA EVENTS

Combating the Labor Shortage – Nov. 11 at 1 p.m.

GMM – Nov. 24 at 5:30 p.m.

Holiday Open House – Dec. 10 at 5:30 p.m.

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