November 2014 Building Buzz

BB BUILDING BUZZ NOVEMBER 2014 President’s Letter

Building Officials Roundtable & Board Elections | page 3

City Beat

Mandan Approves Street Improvement Deadline | page 5

BMHBA News

Awards Mixer Attracts Record Crowd | page 8-9

National News

Waters of the US at Home | page 12

NDAB News

Annual Meeting | page 14

Page 2

BMHBA Building Buzz

November 2014

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

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

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

YTD 2014

YTD 2013

New Residential

Single Family Detached

Single Family Attached Duplex

3 or 4 Unit

5+ Unit Residential Garages New Commercial Alter Public

419/$99.17M 258/$47.55M 143/$21.85M 11/$1.75M 1/$1.01M 6/$27.01M 74/$.647M 34/$12.19M 6/$16.58M

569/$122.71M 360/$65.49M 186/$27.58M 7/$1.21M 3/$1.33M 13/$27.10M 83/$.677M 38/$15.41M 14/$36.68M

MANDAN (July 2014 | Aug. Report Incomplete) - monthly/yearly permit reports can be found at www.cityofmandan.com

Permit Type

YTD 2014

New Residential

Single Family Duplex/Condo Apartments Remodel and Additions New Commercial Alter Commercial

105/$38.35M 94/$23.50M 8/$2.23M 3/$12.62M 114/$2.77M 38/$16.17M 30/$3.04M

YTD 2013

183/$62.2M 139/$39.74M 40/$8.86M 4/$13.60M 114/$2.21M 16/$8.25M 20/$7.46M

November 2014

Page 3

BMHBA Building Buzz

A Word from Our President The weather may be cooling down, but things are heating up at your Home Builders Association. I’d like to highlight several recent association events and get you excited about many more that are in store this November and December.

“Awards Mixer Attracts Record Crowd” is the title of an article on page 8 this Vance Vetter month. The title coincides Board President with an event that drew more than 150 of you to the Bismarck Ramada on Oct. 30. I hope you, like me, enjoyed an evening with peers. It was exciting to see who walked away winners as a result of the Parade of Homes awards. It also was thrilling to celebrate our BEAM Award Winner Scott and Vicki Moran and Associate of the Year Greg Zenker. I am humbled by my designation as 2014 Builder of the Year and couldn’t have achieved that award without the support of you – my fellow members.

It’s an interesting coincidence that this year’s association award recipients are all board members.

I can personally attest to the opportunities that board participation presents. Not only does it expose members to all association offerings first, it also ties us into the community through current affairs and advocacy opportunities.

While I can’t guarantee you an award as a result of your commitment to serve on the board, I can guarantee that you’ll build your member resume as a result. Board nominations are currently being accepted. If you’re interested in serving, I encourage you to contact the office to learn more. Candidate commitments are needed by Nov. 14.

The association has numerous events this November that you’ll want to register for now. Pull up bmhba.com/events and start typing. Here’s a glimpse at what you won’t want to miss: • EPA/Waters of the US Conference – Nov. 10. This event includes Sen. Hoeven and Rep.

Cramer along with NAHB’s own EPA expert Owen McDonough.

• Building Officials Roundtable – Nov. 20. This is your chance to engage our building officials.

The office is fielding questions and concerns and is happy to ask them on your behalf at this event.

• General Membership Meeting/Board Elections – Nov. 25. We’ll gather again to celebrate association activities, preview our 2015 plan and elect new leaders.

You impressed me with your outstanding attendance at the Fall Awards Mixer, please do so again by supporting the association through your participation at each of the events above. And while you’re at it, don’t forget to RSVP for our Holiday Open House on Dec. 11. I promise no program just beer and holiday cheer.

Sincerely, Vance Vetter, President

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Page 4

BMHBA Building Buzz

September 2014 New Members Anderson Custom Cabinets | Tracy Anderson Cabinetry

Kerner Construction & Pools | Jason Kerner

Spas/Pools, General Contractor, Home Builders, Landscaping, Concrete Forms

Century 21 Morrison Realty | Lore Schneider Real Estate/Developers

November 2014 Anniversaries A+ Sunrooms | Larry Towne | Join Date: 2003 Sunrooms

ABC Seamless of Bismarck | Paul Barnum | Join Date: 1993 Gutters, Siding, Windows, Gutter Toppers, Roofing

All Seasons Roofing | Robert Pulver | Join Date: 2002 Roofing

Apple Creek Developers | Kristy Mariner | Join Date: 2013 Real Estate/Developers

Bismarck Patio Design, LLC | Gene Messmer | Join Date: 2013 Landscaping

Bismarck-Mandan Development Association | Brian Ritter Join Date: 2008 Community Organization, Economic Development

Bismarck-Mandan Elks Lodge #1199 | Tresha Peters Join Date: 2009 Hotels and Restaurants

Century 21 Landmark | Amy Hullet | Join Date: 2012 Real Estate/Developers

Crazy D’s Construction | Dustin Fischer | Join Date: 2009 Remodeling

Dakota Caulking, Inc. | Randy Monzelowsky Basement Waterproofing, Caulking

Kutzer Construction, Inc. | Bryan Kutzer | Join Date: 2008

Remodeling, Carpentry, General Contractor, Kitchen/Bath Remodel & Design

Meridian Land Survey | Michael Zimny | Join Date: 2005 Land Development Services, Land Surveying

North Dakota Housing Finance Agency | David Flohr Join Date: 1997 Community Organization, Mortgages

Odorox Midwest | Brandon Leingang | Join Date: 2009 Air Purification, Mold, Restoration

Point CPA, PC | Thomas Ault | Join Date: 2009 Mortgages

Sattler Homes | Robb Sattler | Join Date: 1990 Home Builders (Custom), Real Estate/Developers

Scott D. Berger Construction | Scott Berger | Join Date: 2009 Home Builders (Custom)

Tollberg Homes | Nathan Jones | Join Date: 2012 Home Builder, General Contractor

Truss Systems, Inc. | Wayne Friesz | Join Date: 1995 Building Supplies, Trusses

Twin Cities Design, LLC | Doug Hanson | Join Date: 2013 Home Builder

Waste Management of ND, Inc. | Mitch Dahlstrom Join Date: 2002 Waste Collection

Western Steel & Plumbing | Meghan Aberle | Join Date: 2002 Plumbing & HVAC Supplier

November 2014

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

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

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

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

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

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

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

November 2014

BMHBA Building Buzz

Page 5

City Beat: Mandan Sets Street Improvement Deadline The City of Mandan recently approved a June 1, 2015 deadline for street improvement district (SID) requests. The decision comes after the commission implemented an early deadline for the 2014 construction season.

The engineering department requested the adoption of a deadline for SID requests based the success experienced this construction season. “In addition to promoting proactive planning and on time completions, generally the earlier the bid opening for street projects, the better the bid price is going to be because contractors are less likely to have their schedules full,” said Justin Froseth,

Mandan Planning and Engineering Director.

The bid opening deadline for SIDs that request funding through special assessment districts in 2015 is June 1. That date requires that plans and specs be approved on or before May 5, 2015.

“As always, developers will still have the option to build their streets outside of a lot assessed SID if they so choose and would not be bound by the deadline,” Froseth added.

Building Officials Roundtable is Nov. 20

The Bismarck-Mandan Home Builders Association is hosting Bismarck, Mandan, Lincoln, Burleigh and Morton County Building Officials for a roundtable discussion and lunch on Thursday, Nov. 20.

The event will highlight building department achievements from 2014 and anticipated changes in 2015.

Members will have the opportunity to have building officials address specific concerns and offer recommendations for improved department

services. Please come prepared with questions, or submit your questions and concerns in the notes section through online registration and we'll work them into the program.

Each member gets one free admission and additional tickets are $10 each. We encourage you to bring partners and staff. Register online at bmhba.com/events, by emailing info@ bmhba.com or calling 222-2400.

Don’t Miss These Upcoming Events!

Nov. 5: Events Committee Meeting Nov. 10: EPA/Waters of the US Conference Nov. 13-14: NDAB Board Meeting Nov. 19: Membership Committee Meeting

Nov. 20: Building Officials Roundtable Nov. 21: Executive Committee Meeting Nov. 25: BMHBA Board Meeting Nov. 25: General Membership Meeting & Board Elections

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BMHBA Building Buzz

November 2014

NAHB Chairman Kevin Kelly Thanks Spikes for their Dedication to the Industry November is Spike Appreciation Month, a time to recognize the efforts of one of the most active and dedicated groups in NAHB membership. This ever-growing group of members keeps our local, state and national associations growing by recruiting new members.

NAHB Chairman Kevin Kelly thanked all Spikes for their long-standing commitment to the industry. “You are the true recruiters, ambassadors and leaders of the NAHB federation,” Kelly said. “On behalf of NAHB, thank you for your outstanding contributions.”

NAHB recognizes and rewards this peer-to-peer recruiting through the Spike Club. Members of the Spike Club receive several benefits and recognition throughout the year, including a coveted invitation to the Spike Party at the International Builders' Show.

“Our members are the lifeblood of the Bismarck-Mandan Home Builders Association,” said Dot Frank, Executive Officer. “That’s why recruiting new members to our HBA and NAHB is key to strengthening the home building industry.”

Thank you to all of our members working to help grow the association. We’re especially grateful the following top recruiters this year: Vance Vetter of Vance Vetter Homes and Nathan Jones of Tollberg Homes; and the those who have the highest referral renewals in 2014: Paula Haider of Haider Glass Specialties, Kelly Moldenhauer of K & L Homes Inc., Robb Sattler of Sattler Homes, Inc., Eddy Mitzel of Mitzel Homes, and Rory Schlosser of Schlosser Excavating .

The terminology for energy-efficient homes can be very technical and confusing to home owners. Here are some simple definitions to help you understand popular energysaving options for your home.

meet the household's needs. Rooftop solar panels are perhaps the most common way for homes to produce energy. To help achieve net-zero energy, the home should be designed using a holistic, whole-house approach that strives for efficiency and reduces energy consumption without sacrificing service or comfort.

Decoding Energy Efficiency Lingo

Energy-Efficient Home: A home that uses less energy than a traditional home without compromising service to owners and occupants.

Energy efficiency can be achieved through things such as improved thermal envelopes, solar-oriented construction, low-e windows and efficient appliances. Note that energy efficiency and energy conservation are different in that conservation efforts reduce or eliminate services to save energy.

Learn how efficient your home is now and ways to improve your home's efficiency with ENERGY STAR's Home Energy Yardstick (find the link on our Facebook page facebook.com/bmhba).

Net Zero-Energy Home: A home in which energy production and consumption are equivalent.

That means the energy produced by the home must

Net Zero-Energy-Ready Home: A home that is outfitted with the necessary structural and technological support to install energy-producing technologies.

Net zero energy-ready homes are appropriate for home owners who plan to install energy-producing technology in the future but do not have the means or desire to do so at the current time. When the home owner is ready to install such technology, it will be a much simpler process.

Net Positive-Energy Home: A home that produces more energy than the household needs.

A home owner could receive credit from their utility company for the excess energy returned to the grid that is produced by the energy technologies and saved by energyefficiency measures.

November 2014

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BMHBA Building Buzz

What Foundations are Built Across the Nation?

NAHB analysis of the Survey of Construction (SOC) data shows that nationally, about 30 percent of new single-family homes started in 2013 have a full or partial basement, 54 percent are built on slabs, and 15 percent have a crawl space. The remaining share, including homes built on stilts or pilings, accounted for about 1 percent of homes started in 2013.

The national averages, however, mask the substantial regional differences in foundations reported in the SOC. The SOC which is conducted by the US Census Bureau and partially funded by the Department of Housing and Urban Development (HUD) collects detailed information on physical and financial characteristics of newly-built singlefamily homes. The information comes from interviews of builders or owners of the selected new houses. About 1 in 50 new single-family homes are selected for interviews based on a sample of building permits and a canvassing of areas not requiring permits. This sample is large enough to provide estimates for nine Census divisions.

The wide regional differences in foundations can largely be explained by climate. In colder regions where codes require foundations to be deep the marginal cost of providing a full or partial basement is not that great. So basements are the most common type of foundation in the colder climate divisions. In New England, 87 percent of new single-family homes started in 2013 have basements.

This share is similarly high in the two divisions that make up Midwest – West North Central and East North Central – where the shares of new single-family homes with basements are 84 and 71 percent, respectively. In the neighboring Middle Atlantic division, the majority of homes

are still built with basements, 63 percent.

In the warm West South Central division almost all single-family homes are built on slabs. Homes started in the other two divisions that make up the South region – the East South Central and South Atlantic –are still largely built on slabs but crawl spaces are also common. In the Pacific Division about 55 percent of homes started are built on slabs and crawl spaces account for additional 40 percent of single-family starts, the highest share in the nation. The Mountain division that stretches from northern Idaho and Montana to southern Arizona and New Mexico reports a wider mix of foundations, with about half of new singlefamily homes built with basements, 36 percent built on slabs, and additional 11 percent reporting a crawl space.

Builders Helping Builders: Relationship Building 101 Builders Helping Builders is new feature on NAHBNow.com that allows members to tap into the vast knowledge and experience of the entire Federation in one succinct forum. Each week, a new question—submitted by an NAHB builder or remodeler— will be featured in the Monday Morning Briefing and at NAHBNow.com.

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Page 8

BMHBA Building Buzz

November 2014

Awards Mixer Attracts Record Crowd The association hosted its annual Fall Awards Mixer on Oct. 30 to celebrate the culmination of the Fall Parade of Homes and highlight the builders who were bestowed awards.

The event, which was held at the Bismarck Ramada Hotel, attracted more than twice the number of attendees as the year prior. More than 150 people packed the venue, ponied up to the bar and participated in a toast to the association’s latest membership achievement – 400+ active members.

Board President Vance Vetter welcomed members, Parade of Homes Chairwoman Lindsey Matter announced the Fall Parade winners, Executive Officer Dot Frank congratulated the BEAM, Associate and Builder of the Year award winners and Membership Committee Chairman Sean DeVault led a toast to the 400 member milestone.

Congratulations to the following builders: Judges’ Choice • $199,900-239,900 Patriot Homes • $240,000-270,000 Diversity Homes SL • $290,000-320,000 Schauer Construction • $370,000-440,000 Joe Vetter Construction

• $460,000-500,000 • $540,000-600,000 • $640,000-650,000 People’s Choice • $199,900-239,900 • $240,000-270,000 • $290,000-320,000 • $370,000-440,000

Diversity Homes Venture Building Co. Hallmark Homes

Red Door Homes Liechty Homes Tollberg Homes Joe Vetter Construction

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BMHBA Building Buzz

November 2014

Page 9

Awards Mixer Attracts Record Crowd • $460,000-500,000 • $540,000-600,000 • $640,000-650,000

Diversity Homes K&L Homes Hallmark Homes

Also, congratulations to the 2014 BEAM Award Winner Scott and Vicki Moran of Hallmark Homes, Associate of the Year Greg Zenker of Ferguson Enterprises and Builder of the Year Vance Vetter of Vance Vetter Homes.

The association would like to thank all members who attended and extends a special thanks to the event sponsors who included: Platinum Sponsor Starion Financial; Gold Sponsors: American Bank Center, Ferguson, North Dakota Guaranty & Title, One Source Lighting and Quality Title; Silver Sponsors: Bismarck Title Company, Copper Ridge Design & Builders, Diversity Homes, First Dakota Title, Garage Logic, Haider Glass Specialties, House of Color and Red Door Homes; and Bronze Sponsors: ProBuild and Superior Insurance.

Relive the event by browsing its photos online at facebook.com/bmhba.

Home Show Booth Renewals Due Nov. 21 Members who participated in the 2013 Home Show were mailed contracts for the 2015 show. The deadline to renew booth space is Nov. 21. After that date, any remaining booths will be made available to members on a first come, first served basis. Members will have until Dec. 12 to reserve their space before non-members will have access to them.

The 2015 Home Show is March 13-15 at the Bismarck Events Center. New this year, all vendors will be located in the expanded exhibit hall. Booth rates for members are $450 and $675 for nonmembers.

Contact Terri Johnson at 222-2400 or terri@bmhba.com for details.

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Page 10

BMHBA Building Buzz

November 2014

National News Consumers Expect Fully Automated Homes in the Next Decade Living like the Jetsons is not quite so far off anymore. In fact, fully automated homes may soon become the norm in home construction, especially if consumers have anything to say about it. And they do.

According to recent surveys on home automation, home buyers expect smart-home technology like voice-controlled lights and appliances, heating and cooling systems that adjust based on who’s home, and refrigerators that can track and make grocery purchases, to be standard features within a decade or so.

In fact, more than half of respondents to the 2014 State of the Smart Home survey estimated that within the next 10 years home owners will be able to use a single remote to control their entire house. (This survey was commissioned by Icontrol Networks, a smart-home technology software and services company.)

Although a little more than 70% of home owners currently have at least one smart-home feature, many would like to see more in their next home purchase, according to NAHB’s most recent What Home Buyers Really Want survey.

Consumers overwhelmingly agree that security is the most important feature of a smart home. In fact, a wireless home security system tops the list of most desired technology features for 50% of home buyers.

Right now, only 15% of home owners currently have this feature in their home.

Home buyers also want smart-home technology to help them save money and be more environmentally-

conscious. Seventy-eight percent of respondents to the 2014 State of the Smart Home survey ranked energy management, such as programmable and remotelycontrolled HVAC, outdoor water and lighting systems, as a top smart home feature.

Nearly a third of home buyers surveyed by NAHB also want remote-controlled and/or automated home audio and entertainment systems. Home owners who already have these types of systems rank in the single digits, so there is potential for growth in this market.

A majority (51%) of those surveyed by Icontrol Networks indicated that they would pay up to $500 for a fully-equipped smart home; a third would be willing to pay between $500 and $3,000.

What’s Up with Materials Prices? Gypsum, for One

The latest government report shows that gypsum wholesale prices edged 0.1% lower in September from the previous month and are down from the most recent February peak. However, prices won’t stay this way for long.

Two major drywall suppliers have announced price increases for 2015. National Gypsum will be raising prices by 20% for their entire gypsum wallboard product line effective Jan. 1, 2015 for the entire year. USG announced in September that prices would increase by 5% effective October 6, 2014.

This will be the fourth consecutive year annual price

increases have been implemented.

In releasing its Producer Price Indexes (PPI) for September, the Bureau of Labor Statistics also reported that softwood lumber prices rose 1.3% in September but have moved mostly sideways since the beginning of the year. OSB prices slipped another 1.1% in September, bringing prices 8.6% below year ago levels.

The PPI measures inflation in prices received by domestic producers. It gauges price changes from the seller’s perspective, while the consumer price index (CPI) measures price changes from the consumer’s perspective.

November 2014

BMHBA Building Buzz

Page 11

National News Big Changes Coming for Water Heater Efficiency. Ready?

New water heater efficiency standards that go into effect April 15, 2015 will require significant changes to the installation of residential water heaters – but just for those larger than 55 gallons in capacity.

These mandates will require much higher Energy Factor (EF) ratings, making a huge impact on how larger water heaters are manufactured, distributed and installed. However, products manufactured before April 15 can still be bought and installed after the changeover date.

There are many factors for home builders and remodelers to consider when deciding whether to spec these new water heaters. First is the cost: Conventional, current minimum-efficiency 60-gallon gas and electric water heaters are approximately $675-$1,500, while the new high-efficiency models are about $1,200-$2,450.

New gas water heaters with a capacity of more than 55 gallons will need to be a condensing combustion design to meet the new efficiency requirements, which raises the EF from 0.55 to 0.75 for a 65-gallon model.

This means you’ll need a dedicated electrical receptacle to power the exhaust fan and provide a means for condensate disposal. For venting, a dedicated line for combustion air via a lower temperature PVC pipe will typically exhaust through the wall rather than the roof with this design.

Larger electric water heaters will need to be of a heatpump design to meet the efficiency requirements, which increases the EF from 0.88 to 1.98 for a 65-gallon model.

Where a 3 feet x 3 feet closet was often the go-to location for installation for an electric water heater, these new appliances likely won’t fit into the same space.

According to the Air Conditioning, Heating, & Refrigeration Institute, heat pump water heaters require installation in locations that remain in the 40º–90ºF range year-round and provide at least 1,000 cubic feet of surrounding air space. Because heat pump water heaters

remove heat from the house to heat the water, it’s better to install them in warmer areas of the country where the cooling effect of the heat pump will reduce the air conditioning load on the house.

But even if your project needs an extra-large hot water supply, it doesn’t necessarily need these extra-large heaters, say energy advocates.

Gary Klein, of Gary Klein and Associates says one alternative is to run new plumbing to two smaller water heaters (i.e., 40 gallons) at opposite sides of the home, bringing them closer to the point of use and conserving both water and energy by eliminating excess piping.

For gas water heaters there may not be much of a benefit from purchasing two appliances, the installation of another gas line, and compliance with ventilation requirements. However, not only can the two electric water heaters fit in smaller spaces, there is no need to manage the cold air expelled from the unit or for the design to account for proximity to fixtures to decrease heat loss in piping.

Another alternative: the gas or electric tankless water heater. These units take up little space and can be mounted indoors in cabinets, under sinks, and in very close proximity to fixtures, using less energy than conventional water heaters.

However, gas tankless water heaters may require a larger gas line and modifications to the vent pipe. Electric tankless models may require increasing the capacity of the electric service to the house. Hot water flow rate is limited by the size of the unit and measured in gallons per minute (GPM). Whole-house tankless hot water systems with up to 7.0 GPM can cost $600-$1,000.

It’s important for installers to become familiar with the new rules and the technology options so that they can offer customers the best solutions for placement and capacity.

Tight credit conditions for home buyers and home builders that is hampering the housing and economic recovery were at the top of the agenda as NAHB Senior Officers met with the National Economic Council (NEC) Oct. 14, 2014 at the White House. The NEC advises the President on domestic and global economic policy.

Discussions focused on the current environment regarding single-family and multifamily issues, including credit availability regarding acquisition, development

and construction loans for builders and home loans for consumers. Other topics included the housing market recovery, housing’s key role in the economy and the need to enact comprehensive housing finance reform to provide the certainty necessary for the proper functioning of the U.S. housing market.

NAHB Chairman Kevin Kelly, Chairman-elect Tom Woods, Second Vice Chairman Ed Brady and CEO Jerry Howard attended the meeting.

Tight Credit Conditions Top Agenda at White House Meeting

Page 12

BMHBA Building Buzz

November 2014

National News Why Proposed ‘Waters of the U.S.’ Definition Doesn’t Work This article was updated Oct. 17 with information about the Oct. 15 meeting with EPA. “As you extend the definition of ‘Waters of the U.S.’ to streams that only flow after it rains and isolated ponds and drainage ditches, you extend the areas in which home builders are required to get permits,” leading to bureaucratic delays, additional expenses and ultimate, more expensive homes.

More Questions The U.S. Small Business Administration (SBA) has joined the throng of home builders, farmers and elected officials asking the Environmental Protection Agency (EPA) to drop its proposed definitions for waters of the U.S., citing the disproportionate effect of the rule on small businesses.

It’s a situation that could have been avoided all together had the agency done what it was supposed to do in the first place: Have the SBA review the rule before releasing it to the public.

The new definitions could encompass land near bodies of water previously under the jurisdiction of states and counties – or in the case of some drainage ditches or upland bodies of water, not jurisdictional at all under the Clean Water Act. SBA is “extremely concerned about the rule as proposed. The rule will have a direct and potentially costly impact on small businesses. The limited economic analysis, which the agencies submitted with the rule, provides ample evidence of a potentially significant economic impact,” said SBA Chief Counsel for Advocacy Winslow Sargeant, PhD., in an Oct. 1 letter to EPA Administrator Gina McCarthy.

On Oct. 14, Rep. Bob Goodlatte (R.-Va) wrote an op-ed in The News Virginian, saying, “The impact of the Waters of the U.S. rule on farmers, landowners, local economies, and jobs is very real. Protecting America’s waterways is critical, but continued power grabs by the EPA is not the solution. This should be a collaborative approach – not

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a mandate or murky definition Join us Nov. 10 for from the EPA.” a Waters of the US On Oct. 15, NAHB members seminar at BSC! Jerry Passman bmhba.com/events of Louisiana and Tom Farasy of Maryland met with EPA officials for an informal meeting to discuss the effects of the proposed rule on their businesses – as well as the expected eventual costs, by extension, to home buyers.

Both builders made it clear that the new definitions are game-changers. In his 30 years as a home builder, “I’ve done everything in my power” to avoid projects in locations where interaction with the EPA is even possible, said Passman With the need to bring in lawyers and environmental consultants before any development can begin, “Life is too short to get involved with the permitting headaches,” he told adminstrators.

Farasy focused on the “other waters” provision of the rule: If an “isolated wetland” is found to be jurisdictional

by EPA, that allows the agency to assert jurisdiction over similar pieces of property if they are in the same watershed. Does that mean, Farasy wondered, that the builder himself is responsible for researching past EPA decisions and comparing environmental analyses of similar properties before contenplating whether to develop?

“This meeting was a day late and a dollar short,” said NAHB Environmental Policy Program Manager Owen McDonough. “By no means do we see this attempt as a substitute for SBA review.” And the home builders’ statements seemed to have no impact on EPA’s decisionmaking: Officials told the builders that the agency will move forward with the rule and finalize it in early 2015.

NAHB members are asked to continue to voice their concerns.

November 2014

BMHBA Building Buzz

Page 13

National News How Much for a Code Change?

To be of best use to the public, building codes must be cost effective and affordable – and it’s impossible to figure out whether a proposed code change is either, unless it comes with a price tag.

That’s one important message that NAHB Chairmanelect Tom Woods left with leaders of the International Code Council (ICC) when he spoke to them Sept. 27 during the ICC board meeting in Fort Lauderdale, Fla., and asked them to better enforce the requirement that all code change proposals include cost estimates.

For example, changing requirements for fire separation distances will affect either the size of the house or the size of the lot it sits on – and either choice has an impact on the cost of the home. Mandatory air leakage testing requires additional inspection time – another cost. Using 2x6s instead of 2x4s to accommodate additional insulation requirements has a significant impact on home design and the bottom line.

“All these changes combined increase construction costs significantly and reduce the supply of affordable homes, especially for first-time home buyers,” Woods told board members. “The very fact that ICC policy requires the consideration of the cost impacts demonstrates the council’s belief that costs are an important factor in determining the merit of code change proposals.”

Woods called for requirements that code change proponents provide “quantitative information regarding the magnitude of the expected increase in construction costs.”

Modifying cdpACCESS, the ICC remote voting

program, to require that cost information be uploaded along with the proposed code change could be a failsafe way to accomplish that.

“If cost information is not included, the proposal should be rejected,” Woods said.

Fostering Better Relationships Woods also talked about the importance of good relationships between code officials and home builders – inviting the ICC board to attend the upcoming International Builders’ Show as well as Construction, Code and Standard Committee meetings – and said NAHB continues to encourage its members to keep the lines of communications open.

In addition, he called for better transparency on voting results, so that the ICC, home builders and product manufacturers can all see where code change votes are being approved or disapproved.

“The original goal of a remote participation option was to allow for greater involvement from ICC members, code officials and the public,” Woods said. “We strongly believe that publishing the voting tabulation in this manner will increase participation in subsequent code cycles, which will enhance ICC’s governmental consensus process.”

Review Us on Houzz.com As a home building and remodeling professional association, your BMHBA relies on recommendations from members. We would appreciate it if you would write a brief review for us on Houzz.com, the largest and most influential directory of remodeling and design professionals.

Use this link (http://www.houzz.com/writeReview/ cmd=r/n=bmhba) to write your review.

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BMHBA Building Buzz

NDAB NEWS

Volume XXI, Issue 24

Monthly News from the North Dakota Association of Builders

EPA Proposes Regulations regarding the Waters of the USA On March 25, 2014, the EPA and the Army Corps of Engineers released a proposed rule that includes broad new definitions of the scope of “waters of the United States” that fall under the jurisdiction of the Clean Water Act. Ken Callahan NDAB President

This expansion of the EPA’s regulatory authority would have significant economic impacts for property owners who would face new federal permits, compliance costs and threats of fines. There is a concern across many industry sectors from agriculture to manufacturing regarding the change in definition. The agencies' proposed rule significantly changes and expands what features are protected under the Clean Water Act (CWA) and makes substantial additions, such as a first time inclusion of ditches, mudflats, prairie potholes and other water features that may flow, if at all, only after a heavy rainfall. Further, this proposed rule would run in opposition of recent Supreme Court decisions, as well as ignore congressional intent under the CWA. NAHB members are strong stewards of the environment, yet we are also firm believers in maintaining the proper rulemaking process. The agencies have not yet completed the report that is to serve as the scientific basis for the rule and have also failed to assess the impacts this rule will have on small businesses, as required by the Regulatory Flexibility Act. As a result, the agencies have not fully considered the economic consequences of their actions and should not be allowed to implement the largest expansion of CWA authority. We believe that only Congress reserves the authority to make such sweeping changes.

For home builders, this proposed rule would dramatically increase the cost and time needed to obtain a wetlands permit prior to home construction. The costs of this rule will increase the price of a home and even moderate increases can have a significant impact on housing affordability. Many American families will be susceptible to being priced out of the housing market if this rule is finalized. It is essential to ensure that the housing recovery is not further impeded and this rule runs counter to that notion.

NDAB’s goal this fall is to educate our members and the general public on this important legislation. We will be working with the Bismarck-Mandan Chamber of Commerce and other stakeholders on an event to take place November 10th with this purpose.

Please watch for more information to be released soon, and we hope you will attend.

Ken

November 2014

November 2014

Annual Meeting November is a big month for the North Dakota Association of Builders. In November, the weather is changing, the training classes are starting to be offered again, elections have been held and it is time for us to celebrate the past year. Each November NDAB Board Members gather for our third board meeting of the year this year gathering in Kim Schneider Grand Forks November 13-14. The annual banNDAB Executive Officer quet will be held on Friday, November 14 where awards such as Builders Engaging Associate Members (BEAM), Builder of the Year and Associate of the Year will be presented. We will be celebrating with a PAC social for anyone who contributes $365 or more. The highlight of the night is thanking all those who served on our board this past year. We will be swearing in a new President and new board members and continuing to look to the future while celebrating the past. It is a night full of fun, laughter and all around good people. We encourage all of our members to join us if available. Please contact our office with any questions or to RSVP. Introductions of our new board will be coming out in the December newsletter.

Another topic at the forefront this month needs some attention as well.

I have had the pleasure of meeting with Royce Schultze, Executive Director with the Dakota Center for Independent Living, Inc. Below I would like to share what Royce has written to help explain what Visitability is and what it means when building a home.

Visitability is a building concept that has been around since the 1980s.

It requires three main features when building your new home. The first feature is a zero step entrance on an accessible route. This entrance can be the front door, back door, garage or side door. The second feature is interior doorways with a 32 inch clear width. The third feature is a usable bathroom for someone who uses a wheelchair. These features apply only to the main floor.

Designing your home with these features allows someone with a mobility impairment to visit whether it may be a family member or a friend.

With the aging population in North Dakota, it will also increase the resale value of your home because baby boomers want to stay in their homes longer instead of going into nursing facilities. Putting these features into your home during construction is more cost-effective than putting them in after the fact. “As a person with a mobility impairment, I know firsthand how important these features are,” Royce said.

To learn more, please give Royce a call at 701-222-3636. Royce is full of valuable information and will speak to groups if interested as well.

As the weather turns cold, I wish you warm wishes. I also hope that we continue to see each other out in the communities and at meetings.

Take care, 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

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BMHBA Building Buzz

November 2014

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

and click the press room graphic to access the report and our news release.

bmhba.com

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Close to 2,400 people toured 37 homes during the Fall Parade of Homes. As a result, the association presented a check for $4723 to Homes for Our Troops.

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The association launched a parade of homes smartphone app with the Fall Parade. Roughly 700 apps were downloaded off the Apple and Android markets.

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Builders were recognized for their participation in the Fall Parade of Homes at the Fall Awards Mixer on Oct. 30, which also featured a check presentation and comments from Marine Cpl. Mark Haegele.

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A building officials roundtable has been scheduled for Nov. 20 to recap the 2014 construction season and prepare for 2015 changes.

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Dickinson Area Builders are in a new office just south of the Post Office. Silvia Schoch has started working part-time. It’s great having an ‘office manager’ now. We have a new phone number – 701-4830660. Also, we have a new email: dickinsonbuilders@ndsupernet.com You can reach us at both my email and the new office email now.

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Next meeting will be November 12th at the Elks Club.

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

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Our GMM was held at the Eagles Club.

Arnold Karsky was named our Builder of the Year and Shirley Dukart was named Associate Builder of the Year. Arnold and Shirley were presented with plaques for Builder and Associate. Other membership awards were presented. Kyle Kuntz conducted installation of new board members for this next year.

October is our “City Night”. City of Dickinson department heads presented a program bringing members up to date on the growth we are experiencing.

Last month, the HBA of F-M has released its third-quarter building permit report showing record total permit value at a record high, and housing activity that’s on pace with last year. Visit www.hbafm.com

www.ndbuild.com

HBA of F-M directors on the board and committee members will ring bells for the Salvation Army at West Acres Nov. 18-19.

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

Dickinson Area Builders Assoc.

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

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Education season begins to ramp up this month at the HBA of F-M: Free safety training on defensive driving and CPR/ AED/First Aid will be Nov. 6; NAHB’s BAR/ PREP test will be offered Nov. 13; continuing education for Minnesota plumbers is Nov. 14; a lunch session on Trus Joists Product Knowledge will be Nov. 18 and a lunch session on Houzz.com will be Nov. 20.

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Awards were presented at the October General Membership Meeting. Stacy Schumacher, Garon Corporation, is our 2014 Builder of the Year; Jennifer Johnson, Alerus Financial, is our 2014 Associate of the Year; Applegren Construction won the BEAM Award and Jim Bisson, Keith’s Security World, was our Hall of Fame recipient.

Congratulations to all of these very deserving people!

A big thank you goes out to Deitz Business Promotions for hosting the October Builders after Hours. They did a great job sharing their new location with our members.

The NDAB Board of Directors meeting and Annual Banquet will be held in Grand Forks November 13th and 14th at the Alerus Center. We are excited and proud that our current Past President of the Forx Builders, LeRoy Kurtyka, will be installed as the 2015 NDAB President at the Banquet Friday evening. We are also excited to have NAHB First Vice President Tom Woods attend to perform the installation. This is the first time a NAHB Senior Officer will be coming to Grand Forks.

Keith’s Security World will host the December Builders after Hours. They are celebrating their 40th year in business this year.

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

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2014 Awards were presented at the 51st Annual Meeting & Awards Banquet. Rich Priesing, Obasa Group was presented with the Builder of the Year, Tanesha Leker, Fire Equipment Co. was awarded Associate of the Year and

North Dakota Association of Builders

Eric Wanner, Future Builders/Steen Const. was presented the Citizen of the Year award.

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Minot is running an in-house membership drive from Oct. 10 – Nov. 10 with cash prizes and plane fare & show pass to IBS 2015 to the winner.

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Builders After Hours is scheduled for Nov. 11th hosted by Souris River Designs at their newly remodeled store. Winners of the MAB membership drive will be announced

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A Member Appreciation Holiday Open House is set for Dec. 16th at the MAB office. Snacks and beverages will be served.

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

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Williston Area Builders Association Awards Banquet was October 21, 2014 and held at McCody Concrete.

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Bob Horab with McCody Concrete received the BEAM award, Rob Gamel with The Petersen Group received 2014 Builder of the Year award, and Tom Rolfstad with Williston Economic Development received 2014 Associate of the Year award.

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Parade of Homes winners were The Petersen Group, West Prairie Estates, Windsong Country Estates and S Carpenter Homes.

Thank you to the all of the NDAB 2014 Partners who help make our events possible. We truly appreciate your support and we are very excited to serve you throughout the entire year! We are looking forward to seeing you at our Annual Banquet this month!

Gold - Montana Dakota Utilities Co. Silver - Bismarck-Mandan HBA, Dawson Ins./State Auto Ins., HBA of FargoMoorhead, Miller Insulation Co., Inc., Northern Plumbing Supply Bronze - Bank of North Dakota, Bell State Bank & Trust, Forx Builders Assoc., Minot Assoc. of Builders, ND Guaranty & Title Co., ND Housing Finance Agency, ProBuild, RDO Equipment Co., Williston Area Builders Assoc, Get your Tickets Today!

November 14, 2014 is the NDAB Annual Banquet in Grand Forks. Tickets go on sale October 1st and can be purchased by calling 701-222-2401 or by emailing Heather at heather@ndbuild.com

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November 2014

PRSRT STD U.S. Postage

PAID Permit #72 Bismarck, ND 58501

2600 Gateway Avenue Suite 1 Bismarck, ND 58503

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