November 2019 Building Buzz

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BISMARCK-MANDAN HOME BUILDERS ASSOCIATION NOVEMBER 2019 || WWW.BMHBA.COM


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

Bismarck-Mandan Home Builders Association 2600 Gateway Ave, Ste 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730

www.facebook.com/bmhba PROFESSIONALS BUILDING OUR COMMUNITY THROUGH PROMOTION OF

SINCE 1958.

www.twitter.com/bmhba

PRESIDENT Northern Plains Plumbing, Heating & Air 701-222-2155 greg@northernplains.net

Sattler Homes 701-255-7628 jeff@bismarckbuilder.com VICE PRESIDENT

www.houzz.com/pro/bmhba

Choice Bank 701-258-3300 s.franklin@bankwithchoice.com

Verity Homes of Bismarck 701-663-4117 rory@verityhomes.com

K & L Homes 701-258-4584 cmoldenhauer@midconetwork.com

2ND VICE PRESIDENT Aspire Homes 701-426-8583 greg@daretoaspire.com

PAGE 6 Townsquare Media 701-250-6602 bill.schmid@townsquaremedia.com

TREASURER

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Boulder Homes 701-400-5554 boulderhomesnd@gmail.com

Stoneshire Builders 701-471-6935 brian@stoneshirebuilders.com

PAST PRESIDENT

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Gate City Bank 701-355-7633 lynnklein@gatecity.bank

BNC National Bank 701-250-3050 mmenge@bncbank.com

Triton Homes 701-223-3030 jamie.schmidt@investcore.com

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Dot Frank Simone Marchus Elysha Head


Representing the diversity of the building industry, the BMHBA consists of building specialists from every section of the construction field and associated industries. Your membership strengthens our voice in Bismarck-Mandan construction sector as well as at a state and national level. Please renew your membership by November 30th, 2019.

Paul Barnum

Bryan Kutzer

Gina Hruby

Dena Wise

Robert Pulver

Tammy Blumhagen

David Flohr

Wayne Friesz

Bryan Dean

Charlotte Erickson

Jason Nelson

Mitch Dahlstrom

Ryan Karsky

Michael Zimny

Jessie Johnson

Elaine Narlock

Amy Hullet

Gavin Bitz

Jeff Sattler

Mike Swanberg

Randy Monzelowsky

Cameron Fleck

Scott Berger

Heather Wanner

Aaron Frohlich


2019 November has arrived and it looks to be starting out as a chilly fall leading us into the winter months. As this building season is wrapping up, I wish you all good luck in finishing up exterior work before the ground freezes. Our board elections are complete, and I would like to welcome our new board members. Builder members Amy Larsen of Apex Homes and Joe Vetter of Joe Vetter Construction. Associate members Bill Schmidt of Townsquare Media, Randy Tank of Great Plains Rehabilitation and McKenzie Lawler from Dakota OutdoorScapes. Our new board members will be sworn in at our Annual Banquet on Jan. 24 at the Harvest Event Center in Mandan. October was Careers in Construction month and the Cities of Bismarck and Mandan proclaimed so. I would encourage every member to promote careers in construction year-round. As an association, we give multiple scholarships to students pursuing the trades at BSC, we get in front of our youth each with Kids Build Mandan, the Lunch with Heroes program, and through a contribution to the Gateway to Science Center. I would encourage you to

Regards,

2019 PRESIDENT :: BMHBA

make a pledge online through the Bismarck Public Schools Foundation for new computers for the drafting program. Donations can be made at www.bpsfoundation.com/donate. The HBA Government affairs committee has met with the city of Bismarck about two options for the new sign ordinance adoption. We have given them our comments and concerns about the new policy. We also are involved in the new zoning ordinance changes currently underway in the City of Mandan. Thank you again participants of the Fall Parade of Homes. We welcomed 2,249 people through 30 homes, which compares to 2308 through 39 homes last year. We have a running total of 2,455 app downloads and sold 82 etickets. We will contribute $1 from each ticket sold to the Bismarck Cancer Center.


MONTH

YEAR

JANUARY

2015 2016 2017 2018 2019 0

9

2015 2016 2017 2018 2019

0

10

0

0

0

0

0

2

2

4 5

FEBRUARY

3

4

5

2

0

MARCH

21

22

14

2

9

APRIL

52

29

40

27

26

MAY

31

46

29

16

28

JUNE

31

43

48

24

18

JULY

40

16

60

22

17

AUGUST

20

48

16

27

19

SEPTEMBER

28

44

26

22

23

OCTOBER

54

14

22

15

NOVEMBER

16

11

9

11

DECEMBER

1

0

0

1

TOTAL

297

286

270

169

150

YTD TOTAL

226

261

239

142

150

Data not collected for the ETA in 2015 and 2016.

1

0

0

2015 2016 2017 2018 2019

2015 2016 2017 2018 2019

2015 2016 2017 2018 2019

1

0

0

2

0

0

2

0

0

2

0

0

0

0

2

0

1

2

6

5

0

0

0

0

3

0

1

1

0

0

0

1

11

6

4

8

2

0

3

0

0

0

9

9

4

2

4

3

6

14

12

8

16

11

18

2

4

0

6

14

5

11

11

14

6

4

26

13

11

15

11

17

2

5

5

0

14

16

7

20

10

10

2

2

21

20

13

13

4

1

6

3

1

1

8

11

4

4

6

3

3

2

9

13

6

11

12

0

5

1

5

1

13

9

4

3

11

6

1

7

17

7

13

20

10

8

2

9

4

5

8

9

6

8

5

8

3

10

16

14

26

11

10

3

3

4

5

2

9

9

9

6

5

4

7

9

29

20

9

17

10

7

5

4

7

3

7

3

0

7

7

7

6

2

5

0

0

3

4

1

0

0

0

0

0

0

0

1

0

4

0

0

0

2

0

45

27

32

132

123

114

116

60

67

40

37

28

17

83

80

51

61

57

38

20

32

116

87

87

101

60

47

25

26

23

17

76

69

45

54

57

YTD Total

15% -8% -41% 6%

-47% 60%

-25% 0%

16% -41%

-47% 4% -12% -26%

-9% -35% 20% 6%

Total

-4% -6% -37% -11%

-40% 19%

-7% -7%

2% -48%

-40% -8% -24% -39%

-4% -36% 20% -7%

BISMARCK SINGLE FAMILY DWELLING APEX BUILDERS NELSON BUILDERS VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES JOE VETTER CONST MERTZ BUILDERS VANCE VETTER CONST DIVERSITY HOMES PARAMOUNT BUILDERS ASPIRE HOMES STONESHIRE BUILDERS K & L HOMES VERITY HOMES INVESTCORE

320 E LASALLE DR 4405 DOWNING ST 4412 SERENITY CT 4418 SERENITY CT 4424 SERENITY CT 4430 SERENITY CT 4436 SERENITY CT 4442 SERENITY CT 5334 MICA DR 619 FLINT DR 3820 CALGARY CIR 1025 CALYPSO DR 4067 INTREPID CIR 4025 SANTA MARIA LN 4106 COGBURN RD 5820 CRESTED BUTTE RD 217 HURON DR 5508 GOLD DR

K & L HOMES SATTLER HOMES SATTLER HOMES KNUTSON HOMES PINNACLE HOMES GREG LANG VERITY HOMES MAYNARD CONST MAYNARD CONST BIG RIVER BUILDERS KYLE EVERT ANGELA KLUCK WELCH CONST KEVIN FISCHER CONST KEVIN FISCHER CONST

5809 VALLEY VISTA LN 4801 MALTBY ST 4903 E CALGARY AVE 901 ASH COULEE PL 5311 GOLD DR 4102 SANDY RIVER PL 412 WATERCRESS AVE 6806 SELLAND LOOP 6716 SELLAND LOOP 6334 DREAM CIR 5901 MISTY WATERS DR 4800 WILDROSE CRES 6314 SERENE CIR 1208 EMPIRE CIR 1200 EMPIRE CIR

DIVERSITY HOMES E3 HOMES BIG RIVER BUILDERS

7665 STAR LA 14279 PARKER RANCH RD 11737 APPLE VIEW LA

BURLEIGH CITY SINGLE FAMILY DWELLING

R LANG CONST

11169 NW 28TH ST

RUSCH HOMES VERITY HOMES

2940 BUTLER ST 6997 MAJESTIC LP

E3 HOMES DIVERSITY HOMES DIVERSITY HOMES JE HOMES JE HOMES VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES BOULDER HOMES

4508 SHOREVIEW LN 1205 SHIRES DR SE 1400 SUFFOLK DR SE 3705 GALE CIRCLE SE 3709 GALE CIRCLE SE 3834 GALE CIRCLE SE 3838 GALE CIRCLE SE 3820 24TH ST SE 3812 24TH ST SE 109 14TH AVE NW

TUCKER NORTON

4128 41ST ST

LINCOLN SINGLE FAMILY DWELLING

MANDAN SINGLE FAMILY DWELLING

NEW SALEM SINGLE FAMILY DWELLING

PLACE YOUR AD HERE FOR PREMIUM EXPOSURE.

JUST $21 PER ISSUE.

EMAIL INFO@BMHBA.COM.


The City of Bismarck has created a Vacant Property Inventory that is available to the public on the City of Bismarck’s website.

Any interested parties may contact the property owner or the City Community Development Department at 701-355 -1840 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).

A total of 1,622 parcels within the city limits of Bismarck have been identified as currently vacant, yet potentially developable. Staff from the Community Development Department estimate that 3,642 housing units could be The need for this inventory was identified in the 2016 constructed within these vacant parcels, given the zoning or Infill and Redevelopment Plan adopted by the Bismarck future land use designation and typical densities within each Board of City Commissioners. According to this plan, district. “Information about the current inventory can help prospective businesses identify suitable locations, help The vacant parcel inventory includes a broad range of developers decide when to initiate new subdivisions, and parcels. Some are lots that have already been through the help the City plan for the pace of growth. It also identifies platting process, have available public services, and are opportunities for infill that are available throughout the essentially ready for a building permit right now. Other City.” parcels are open tracts of land that could be developed but would require a number of steps before any building View Vacant Property Inventory here: http:// permits may be issued. The map is updated on a monthly bismarck.maps.arcgis.com/apps/opsdashboard/ basis. index.html#/5d1b09de0ee0415b8c09a5b62bf7ac8c

Bianco Realty has announced their top 6 "REALTORS® OF THE MONTH" for September: Darcy Fettig, Shirley Thomas, Amber Sandness, Jane Thoele, Judy Maslowski and Tori Mathern. These six REALTORS® had the highest sales totals at Bianco Realty in September 2019.


With the temperatures dipping, homeowners have fired up their heating appliances and fireplaces. Did you know that heating equipment is the second leading cause of home fires, and the leading cause of home fire deaths in the U.S.? Most home heating fire deaths involved stationary or portable space heaters. The leading factor contributing to home heating fires was failure to clean solid-fueled heating equipment, primarily chimneys. Fires confined to chimneys, flues, or fuel burners account for 75% of home heating fires. Follow these home heating tips from the Bismarck Fire Department to help prevent winter fires and to stay safe this season: •

Have fuel-burning heating equipment and chimneys cleaned and inspected every year by a qualified professional.

Keep anything that can catch fire at least 3 feet from heating equipment.

Turn space heaters off when leaving a room or going to bed.

Never use an oven to heat your home.

Make sure vents for the furnace, water heater, stove, and fireplace are kept clear of snow and debris.

Install Smoke Alarms on every level of the home, in every bedroom, and outside each sleeping area.

Install Carbon Monoxide (CO) alarms on every level of the home and test them monthly.

For more information contact the Bismarck Fire Department at (701) 355-1400 or visit bismarcknd.gov/fire.

A collaborative team involving the Public Works, Engineering and Planning, and Fire departments recently identified approximately 130 privately-owned fire hydrants in the City of Mandan. To ensure that these hydrants are easily located in an emergency, public works crews will be marking and clearly identifing these hydrants as private with blue flags. Public fire hydrants are distinguished with a red flag. Privately-controlled fire hydrants are common in Mandan and other cities in manufactured home parks and other private developments with private roadways. Developers are allowed to install private infrastructure, such as fire hydrants, subject to meeting city codes. Property owners are responsible for annual maintenance and operation. The City Commission approved a utility department 2019 budget amendment for the purchase of 150 flags for $4,200. Installation of the markers will occur as time and weather allows throughout the rest of the year and in 2020 if needed. The Fire Department will ensure the property owners are operationally maintaining the private hydrants as part of the annual fire inspection process.

Reprinted from the Bismarck Mandan Chamber EDC Community Partnership Newsletter

The 2019 third quarter Cost of Living Index (COLI) was released in October. The COLI is put together by the Center for Regional Economic Competitiveness and is an analysis of average prices submitted by 270 urban areas across the United States. The COLI compares all 268 submitted urban areas with a score of 100 being average. The information collected is also used to populate the Cost of Living Calculator on the Chamber EDC website. The calculator determines

what salary someone would need to earn in Bismarck-Mandan to compare to what that person is earning in any of the other 267 urban areas.

Both the index and the calculator assist the Chamber EDC is our talent attraction efforts. The comparison to other area communities is shown below.


Home builders can improve productivity and increase profits by applying financial management techniques used in successful businesses. A threesession course beginning this month will explore these concepts. Financial Management Live Online, taught by industry expert Bill Asdal CGP, CGR, GMB over three consecutive Tuesdays, Nov. 5, 12, 19, from 12-2 p.m., will discuss financial tools you can apply immediately to achieve financial success. Learn how to work with annual operating plans and budgets, financial reports, operating ratios and revenue forecasts that control profitability.

“Increased Missouri River releases may result in increased groundwater levels near the Missouri River,’’ said Michelle Klose, Director, Bismarck Utility Operations. Public Works Water Utility Operations has observed greater flows at the wastewater treatment plant since mid-September, which is an indication that sump pumps are discharging more water to the sewer system. Residents may want to check their sump pumps. The City’s Stormwater Program Coordinator, Terry Halstengard offers the following sump pump preparedness tips: • Check your sumps often to make sure they are working properly. • Having a backup pump is a good idea or even a 12-volt backup pump for power outages.

Participants in this intermediate course will learn to:

• Identify personal and business goals

• When possible, warm weather sump discharge should go to a non-erodible surface such as the driveway or streets. By doing so, it helps us save treatment and pumping costs at the Waste Water Treatment Plant.

• Build pro formas and operating plans that incorporate personal and business goals

• It’s never a good idea to run your sump discharge onto a lawn or any

• Identify ways to effectively manage business results and respond to changes

• porous surface; the water will just be recycled into yours or your neighbor’s sump system.

• Identify ways to improve the long-term health of the company

• Winter-time sump discharge should go into the sanitary system, such as the floor drain.

• Review a current business plan and results

Registration is open until 2 p.m. on Monday, Nov. 4. For questions about registration, please contact Deborah Krat, or call her at 800-368-5242 x8155. Participants in the course will earn six hours toward the CAPS, CGA, CGB, CGR, GMB, GMR, CGP, CSP, Master CGP and Master CSP designations.

All members have access to join the HBA Rebates program administered through the North Dakota Association of Builders. To date, the program has 52 registered builder and remodeler members. Forty of those members have participated in the program by submitting a rebate claim. Of the 40 who participated, $179,127.50 has been cumulatively paid to them. With a cumulative average per member

“The City monitors Missouri River conditions and official information provided by the U.S. Army Corps of Engineers and National Weather Service and will provide periodic updates as needed,” said Klose. Current resources and Missouri River information are available online at https://bit.ly/2NhAViN.

rebate at $4,478.19. Quarter two claimants from the BMHBA included Apex Builders, Epic Homes, Hallmark Homes Inc., Hopfauf Custom Builders and Sattler Homes, Inc. Rebate checks ranged from $5 to $1625. Get registered for the rebate program online at NDABrebates.com. Submissions for quarter three construction projects is Nov. 15.

HBA members can post open job positions in the skilled trades and find skilled employees through the Generation T effort, a free national platform. NAHB is proud partners with Generation T and pledges to create a new generation of the building trades. Visit WeAreGenerationT.com for details.


With the International Code Council’s 2021 building codes cycle in full swing, it’s important to note another set of codes that may have a big effect on many home builders and remodelers. The National Fire Protection Association recently published the 2020 edition of the National Electrical Code (NEC). This particular edition of the code has some significant changes that target residential electrical service, including: • Under section 230.67 of the code, all electrical service to homes would need to have a surge protect device installed. This applies to new home builds and remodels. • Section 210.8(A)(5) calls for all basement receptacles to have ground-fault circuit interrupter (GFCI) protection. This section previously applied only to unfinished areas of basements. • Section 210.8(A) would require receptacles serving 250-volt appliances – like stoves and dryers – to have GFCI protection when located in certain areas. This section previously applied to outlets up to 125 volts only. • Under section 230.85, all one- and two-family homes would be required to have a labelled electrical disconnect in a readily accessible outdoor location. While the current code cycle for the NEC is complete, the code was just recently published, meaning it has yet to be widely adopted. But many state and local jurisdictions will begin their adoption processes soon. Home builders can still influence the adoption process at their state and local levels. NAHB has recommendations for changes to codes language that it encourages members to share with local adopting bodies. For example, NAHB recommends changing the new GFCI requirements back to only unfinished portions of basements and for the surge protection language to be struck altogether. It is very important for home builders, remodelers and trade contractors to get involved in the codes process at every step. While the NEC is done for this cycle, the development of the new I-codes, such as the International Residential Code, can be influenced. Contact the BMHBA at info@bmhba.com or 222-2400 to learn about participating in the association’s Government Affairs Committee to advocate for fair building regulations.

After years of discussing plans for an updated public works facility, the dream will become reality in 2020. The current facility, built in the late 1970s, is in need of improvements to continue to provide services to our growing city. The current facility lacks office space, equipment storage for utility and street departments, mechanic space to properly maintain the fleet, and the salt and sand pile must be covered to comply with stormwater regulations. Plans brought to Commissioners in early 2018 were terminated due to deficiencies. In September, the City Commission reviewed and approved change orders to the contract. The scope of the project now includes: • • • • •

• •

• •

Adding an emergency generator; Installing proper ventilation and a fire sprinkler system; Painting the exterior of the current blue building; New interior and exterior lighting; Adding a new administrative office area with lockers, a break room, small conference room and a training room; Heated equipment storage area to preserve the life of machinery; Remodeling the utility building on the east side of the property to include a wash bay and minimal heated storage; Constructing a covered salt and sand storage structure; and A wash-out area for street sweepers.

A new parking area is also planned. The City will special assess the $1.2 million parking lot improvements to itself. The majority of the site will be hard-surfaced with a small area for the material storage stock pile left unpaved. “The public works facility is the nerve center of the water and sewer system,” says Public Works Director Mitch Bitz. “Bringing this kind of sustainability to the area will be beneficial to the city.” He added that having a conference room will allow for trainings and a space to host public input meetings. The new project total is approximately $5.7 million. In September, the City Commission approved amending the public works expansion budget by using the $3 million in Hub City funds set aside for this project and transferring $1.5 million from the sales tax fund. City staff is helping with the project, doing exterior demolition, material hauling and more to reduce costs. Construction is expected to be complete in 2020.


With another year

speeding past us, and our days filled with finishing projects, personal and professional commitments and the holidays approaching quickly we are all busier than ever. I would like to invite all of you to join us at the 2019 Annual Banquet in Grand Forks November 21st. Make the time to come and network with fellow builders, meet some of our Associate and Affiliate members and celebrate the accomplishments of 2019. We will be honoring our 2019 Board of Directors and swearing in our new Board for 2020. This is not only a great time to recognize these individuals who have donated their time and efforts to ND Association of Builders as well as their local associations but to also give some much needed recognition to the staff of these local associations that have gone above and beyond with the Membership Award. This year many of us have really put a spot light on membership retention and recruitment. The Membership Award is based on several factors used to identify the local

associations that have reached and or exceeded their goals for the year, carry a high retention rate and have made huge strides in recruiting new members. With out the local offices building us up feeding into the state office and then in turn building the national membership our industry would be a much different place. Creating this pool of exceptional professionals who don't hesitate to get involved at a local, state and national level makes the housing industry stronger and gives us a voice. Then we come to our Partners. NDAB's 2019 Partners have been such a valuable asset and with this relationship we have been able to offer our members some very amazing opportunities market themselves and promote the association. Our Annual Partners get so much value in return though email marketing, recognition on our website, and social media and banners at events. One of the other perks is tickets to events allowing you to join us during these celebrations, or treat your staff to a night out with some amazing professionals. If your business is interested in joining us please use the link below to look over the different levels of support and the benefits to each or contact Sara Frank 701222-2401 or Sara@ndbuild.com Until next time, Bob Horab

November 21 while we install our new State President, Nate Applegren (Grand Forks), celebrate and thank our outgoing President, Bob Horab (Williston), 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 Engaging As the temperatures drop as Associate Members and Leader quickly as the leaves have fallen of the PAC awards will be it is time to reflect on another presented along with our local successful year for NDAB and membership award. NDAB-PAC start to discuss our plans for the pin wearers will be gifted with upcoming year. Those members some special treatment as our that make up our Board of way of thanking them for their Directors, PAC Trustees and continued support throughout various committees are all the year! This is one of many valued volunteers. We recognize great opportunities to network and appreciate the time they put and meet fellow members from into helping with the success of across the state. More NDAB that takes them away information on this great event from work and family will be forthcoming and we look time. While there are too many forward to celebrating with you! members to list individually in Have you registered yet for this newsletter, they are the 2019 International Builders recognized yearly at our Annual Show (IBS) and Annual Meeting Banquet and their efforts are of the Membership being held always acknowledged by Sara January 21-23 in Las Vegas? IBS Frank, NDAB Communications is the biggest light construction and Government Affairs Director show in the country and, for and myself, Kim Schneider, NAHB members, the centerpiece NDAB Chief Executive of Design & Construction Week. Officer. Working together as a IBS is also the time for NAHB’s team is what pushes our efforts annual meeting, when the forward and every single election of our national member’s involvement at the leadership takes place, as well as local, state and national level are dozens of meetings, awards greatly admired and presentations, and other special appreciated. If you are events to celebrate the interested in learning how to achievements of members all become more involved in the over the country. IBS is one of association, please contact your the best attending events from local Executive Officer or ask a representatives across North fellow local member. Fresh Dakota and we invite you to join ideas, new friends and us for the state hardworking volunteers are social. Registration is now open, always welcome! and you can learn more by NDAB will be hosting their visiting www.buildersshow.com/ Annual Banquet and Board of Directors meeting November 21- Warm wishes to you and yours, 22 in Grand Forks, ND. We invite you to join us on Thursday, Kim Schneider


Panelists covered tips in six key areas: • Research (presented by Bryon Cohron of ProMatura Group)

• Development (presented by Jennifer Landers of Newland)

• Architecture and Research (presented by Jim Riviello of The Martin Architectural Group)

• Architecture Design (presented by

Deryl Patterson of Housing Design Matters)

• Interior Design & Merchandising

(presented by Lita Dirks of Lita Dirks & Co.)

• Marketing (presented by Jane O’Connor of 55 Plus, LLC)

One important theme carried throughout the session is how critical it is to understand who the 55+ buyer is and what their preferences are in order to help them achieve their dream home. “The 55+ buyer is a very sophisticated buyer today, so you can’t underestimate the 55+ buyer,” stated Dirks. “They’ve been dreaming of this home of their dreams that they want, and the merchandising of this home is how we’re able to create the dream and help them see that they truly can have it.” What they’re dreaming of may differ from what developers expect.

Common myths or missteps, Cohron noted, include taking a formulaic approach to home design, developing communities around golf courses, and assuming that boomers are isolated or lonely and need to have their day planned out. Instead, Landers shared, they want to be in proximity to conveniences such as shopping, entertainment and education opportunities, with easy access to travel options. This is why college towns can be such a great option, Riviello added, with charming town centers and unique amenities such as lectures, concerts and college sporting events. Walkability around the community is key, with ample trails and sidewalks, as well as pocket parks for relaxing or playing with pets. Outdoor living adds values to the home as well — both in terms of providing a spot to relax and visually expanding the square footage available. When designing homes for 55+ buyers, these areas should be top priorities: • Stairs: Never include a straight run,

Patterson recommended. Instead, incorporate a landing as a rest spot.

• Flex rooms: Whether it’s a

combination office/den/guestroom or a hobby room to explore or celebrate

special interests, the more uses buyers can envision for a room, the more value it adds.

• Storage: This is a big plus for 55+

buyers, so smart solutions are a must. Think closets and under stairs, as well as permanent access to less-used spaces, such as the basement or an attic above the garage.

• Kitchen: This is a central entertaining

spot where details are important. This includes upgraded appliances, such as drawer microwaves; large islands; and comfortable seating.

• Bathroom: Pay particular attention to the shower, with features such as a seat, handheld showerhead and a nothreshold entry. Patterson also recommended a separate toilet room for privacy, with room for future grab bars (which shrink the room by about 6 inches).

• Lighting: Design homes to allow as

much natural light as possible, but also be cognizant of lighting for both mood and function. “The average 60year-old needs six times as much light to see as a 20-year-old,” Patterson shared. Well-placed lighting can have a huge impact on spaces such as stairs, hallways and bathrooms.

The next 55+ Lunch and Learn session, held Oct. 15 from 12-1 p.m., will focus on 55+ buyer selling myths and secrets to closing more sales. To register, or to gain access to Lunch and Learn replays, contact the Bismarck-Mandan Home Builders Association.


The amount of money a home owner spends on utility costs to operate their house can have a significant impact on their monthly budgets and what they can comfortably afford, so it’s important to be able to speak to how energy efficient your buildings are to potential clients. With several energy rating systems out there, however, let’s take a look at how to decipher what each number means.

A home compliant with the 2006 International Energy Conservation Code (IECC) would receive a score of 100. In comparison, a home with a HERS Index Score of 60 is 40% more efficient than the 2006 IECC-compliant home.

The Department of Energy (DOE) developed the Home Energy Score (HES) as a low-cost way to estimate a home’s energy usage. The HES scale is typically used for existing homes You can get a general sense of how (whereas HERS is often used for new energy efficient the home might be homes) and ranges from 1-10, with a using the following rating systems. higher score indicating lower energy use. HES estimates the home’s total Residential Energy Services Network energy use, not energy use per square (RESNET) created the Home Energy foot, so a larger home will most likely Rating System (HERS), which is based score lower on the scale than a smaller on an index where the lower the home. The score is a gauge of how number, the more efficient the house. much energy the home might use, and By conducting blower door and duct is determined after a walk-through of leakage tests, the HERS Rater compares the home. The assessor collects around the home to a reference home (a 50 data points, such as insulation model home that is the same type, size grade, window type, and information and shape) for a relative score. on the heating/cooling system. As an example, a HERS Index Score Why do these scores matter, and of 0 is a net-zero energy home that how do they fit into the broader produces as much energy as it uses.

If you are thinking about attending IBS for the first time, you can take advantage of a first-time attendee discount for current NAHB members who have never previously registered for IBS, or people who have previously registered for the show but only as a non-member. Full registration is available for $150 — a savings of up to $450. Visit https://bit.ly/2Bq2MaN for details.

market? The HES can help Federal Housing Administration (FHA) borrowers take out a larger loan if the home has a higher score, indicating that the house is more energy efficient and, therefore, the owner is expected to have lower utility costs. Although the HES is a low-cost and reliable way to get an idea of a home’s energy usage, it cannot be used to comply with the IECC. The Energy Rating Index (ERI) is used as a performance path to comply with the IECC. The HERS Index can be used for this performance path, so while more expensive than HES, it can be advantageous to builders in order to comply with the IECC. For more information about NAHB’s sustainable and green building programs, contact Program Manager Anna Stern at astern@nahb.org. To stay current on the high-performance residential building sector, follow NAHB’s Sustainability and Green Building team on Twitter.


The most common exterior wall materials on homes started in 2018 were vinyl siding and stucco, according to data from the Census Bureau’s Survey of Construction (SOC). Vinyl siding and stucco were each used on 26% of new homes started in 2018, followed closely by brick or brick veneer at 21% and fiber cement siding (such as Hardiplank or Hardiboard) at 20%. Far smaller shares of single-family homes started last year had wood or wood products (5%) or stone or rock (1%) as the principal exterior wall material. The Census Bureau’s SOC data are available by the nine census divisions, and there are substantial differences in the use of exterior materials across the geographic areas. For example, vinyl rules in the Middle Atlantic and New England, with 74% of the new homes started in 2018 using this building material. Meanwhile, stucco was the most widely used primary exterior wall material in the Pacific, Mountain and South Atlantic divisions in 2018, with a 59%, 52% and 35% market share, respectively. Brick or brick veneer was the top choice in East and West South Central divisions. In the West South Central, 69% of the new single-family homes started in 2018 used brick or brick veneer as the primary exterior material, compared to 46% in East South Central division. NAHB economist Ashok Chaluvadi provides more analysis in an Eye on Housing blog post at https://bit.ly/2BRrx04.

Are you in need of an accounting system to organize data for analysis, reporting and control? Developed by CPAs specifically for home builders, remodelers, developers and commercial builders, the NAHB Chart of Accounts can be used to classify financial accounting data. For related resources to help you manage and operate your business, visit nahb.org/BizTools.


Using social media effectively and consistently to influence buying behavior is as dependent on a strong foundation as is the structural integrity of the homes you’re building. In Social Media Marketing for Your Business, Carol Morgan outlines how to take a long-term approach to building and maintaining an effective marketing strategy with social media as a main component. One of the most important initial steps Carol highlights in this new book is the act of goal setting. Just like with your business, each action you take on social media should have a goal. It’s important to determine what action you want your audience to take, then have the post encourage them to do it. Here are six goals you should consider when building your social media program: • Increased Website Traffic: More traffic to your website means more buyers. You can use social media to drive traffic to your site by posting relevant content on blogs, social networking sites and online public relations, and linking back to your website. • Improved Website SEO: Search engine optimization (SEO) uses specific strategies to boost a website’s ranking in search results for a variety of keywords. One way to improve organic search results and the relevance of a site is to create quality links from quality sites to your website. • Reputation Management: Your reputation is critical.

• Your customers start their search for your product or service online, making it imperative to have a process of handling customer concerns and complaints, as well as warranty issues. To manage your reputation, fill your page-one search engine results page with desirable content. • Engage with Followers: The main reason why people follow brands on social media is to get something. It’s all about the “me” in social media. As a business, you must provide social networkers with a reason to follow you, such as a coupon or incentive just for the fans that follow you on Facebook. • Increased Brand Awareness: Your social networking should fulfill your brand promise and positioning. Online branding is comparatively inexpensive versus using traditional media. A first step in branding your company online is to ensure that your company logo and colors are on every website and social media site in which you participate. • Completed Website Contact Forms: We all want more leads and more sales. Use social media advertising to send clicks to the company’s website contact form to increase the number of generated leads. Social media can help build a sales funnel by creating a social lead capture for various social media sites or campaigns. For more information on how to implement a social media strategy for your company, get your copy of Social Media Marketing for Your Business at BuilderBooks.com.

Acting against the strong objections of NAHB, the House approved the Forced Arbitration Injustice Repeal Act (H.R. 1423), legislation that would prohibit two parties from including in a contract a pre-dispute arbitration agreement. NAHB strongly supports the use of alternative dispute resolution (ADR), including binding arbitration, in consumer contracts. NAHB has found that ADR is often the most rapid, fair and cost-effective means to resolving trade disputes – for the both the builder and buyer – arising out of the construction and/or sale of the home. In contract, litigation is expensive, time consuming and unlikely to produce the desired result – getting the problem repaired. For the home buyer, the use of arbitration also provides them with certainty that any dispute will be resolved in a quick, fair and less costly manner than litigation. NAHB members have priced their products based on an agreed-upon contract. Because arbitration allows businesses to contain their legal costs, those savings are often included in the price of the product. Prior to the House vote, NAHB sent a letter to House members detailing our concerns with the bill and designated opposition to the legislation as a “key vote” because of its importance to the housing community


Sales of newly built, single-family homes decreased 0.7% to a seasonally adjusted annual rate of 701,000 units in September off a downwardly revised reading in August, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. On a year-to-date basis, new home sales for 2019 are 7.2% higher than the same period in 2018. “New home sales inched down in September, but the ongoing trend remains positive as builders increase their production,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn. “Sales volume is expected to improve slightly in the coming months as more newly-built inventory arrives,” said Jing Fu, NAHB’s Director of Forecasting and Analysis. A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the September reading of 701,000 units is the number of homes that would sell if this pace continued for the next 12 months. The inventory of new homes for sale was 321,000 in September, representing a 5.5 months’ supply. The median sales price was $299,400. The median price of a new home sale a year earlier was $328,300. Regionally, and on a year-to-date basis, new home sales are 12.8% higher in the South and 7.3% higher in the West. Sales are down 10.3% in the Northeast and 10.6% in the Midwest.

On this episode of Housing Developments, co-hosts CEO Jerry Howard and Chief Lobbyist Jim Tobin discuss the latest trend in the fight for affordable housing: upzoning. Does this policy have the legs to be more than a trend and become a solution? Special guest Monte Mraz, president of the Minnesota Metropolitan Contracts Association, joins the hosts to discuss the “Minneapolis 2040” plan which aims to make desirable housing affordable and accessible to all Minneapolis residents by 2040. The main component of this plan is to eliminate single-family zoning throughout the city and increase housing unit density. Listen to the episode online at https://bit.ly/30SdVeY, or wherever you find podcasts, to hear about the pros and cons of upzoning. A list of the podcast outlets with official Housing Developments feeds can be found at nahb.org/podcast.

Millennials are more inclined to want features such as two-story homes, open layouts, and a greater number of bedrooms and bathrooms than other generations, according to data from NAHB’s “What Home Buyers Really Want” report. The report is based on a survey of prospective and recent home buyers about the preferences they want in a home and community. Additional space is important to millennials, who have an eye toward homes with at least three bedrooms (87%) and two bathrooms (86%). These home buyers also want a half basement (36%) or a full basement (37%) and prefer open kitchen and dining room layouts (50%) and family room and dining room layouts (43%) more so than older home buyers. What they don’t tend to want are single-story homes (35%) — which, in contrast, are much more popular with boomers (80%) and seniors (74%). Three-bedroom homes are also popular among boomers (52%) and seniors (56%), but interest in four bedrooms or more drops for these generations — to 23% and 13%, respectively — and increases for millennials. NAHB economist Carmel Ford attributes millennials’ increased interest in additional bedrooms to potentially accommodating growing families. Read more about millennial layout preferences in an Eye on Housing post online at https://bit.ly/2pXGXxb.


2600 Gateway Ave, Ste 1 Bismarck, ND 58503

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