Bismarck-Mandan Home Builders Association
BUILDING uzz B October 2017
ELECT TO CELEBRATE WITH US! FALL AWARDS MIXER AND GMM pages 8 & 9
4 Keys to Working With Insurance Adjusters page 5
Where have you been? page 11
Will Lumber Prices Surge in Hurricanesâ&#x20AC;&#x2122; Wake? page 10
BUILDING Buzz Building Buzz is a publication of the Bismarck-Mandan Home Builders Association 2600 Gateway Ave., Suite 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730 Like Us! www.facebook.com/bmhba Follow Us! www.twitter.com/bmhba
Publisher/Editor: Dot Frank Layout Editor: Stephanie Drietz - Drietz Designs Contributor: Tracy DeForest
New Members & Anniversaries August 2017 New Members 11th Avenue Interiors | Mary Kay Lapp 701-425-3367 | firstname.lastname@example.org
Dakota Adventist Academy | Ryan Peterson 701.258.9000 | email@example.com
Vision Technology Inc. | Forrest Dockter 701-222-3009 | firstname.lastname@example.org
Time to Renew! Members with September Anniversaries. Renew by October 31, 2017. Alliance Concrete, LLC. | Ryan Wisdom Concrete Work Apex Builders | Amy Larsen www.apexbuildersnd.com | Single Family Spec/Tract Building Arvig | Clarence Dawes www.arvig.com | Computer Products and Services
BisManOnline.com | Stephen Schnaible www.bismanonline.com | Computer Products and Services Bismarck Technical Center | Antone Steckler https://www.bismarckschools.org/Page/2011 Single Family Spec/Tract Building | Trade Association/Non-Profit Future Builders Inc. | Kyle Morey www.futurebuildersinc.com | Single Family Spec/Tract Building | Single Family General Contracting | Single Family Custom Building Camp Bros Heating & Air | Jim Camp Plumbing/Heating/Air Conditioning
D & M Industries | Dan Narveson www.weselldoors.com | Building Materials Lumber (Retail Dealership)
I Keating | Keven Oler http://www.ikeatingfurniture.com | Planner or Designer | Flooring Coverings (Retail Dealership) Imperial Flooring, Inc. | Chris Svanes www.imperialflooringdesign.com | Planner or Designer | Flooring Coverings (Retail Dealership)
Legacy Landscaping and Design LLC | Tylor Doll | www.legacylandscapingnd.com | Property Management | Landscaping
Paramount Builders, Inc. | Jarred Roloff www.tssecuritysystems.com | Computer Products and Services | Security Systems Milestone Builders | Eric Budd www.paramountbuildersinc.net | Single Family General Contracting | Single Family Custom Building | Carpentry Work Ramkota Hotel | Dave Achtenberg
Great Plains Insulation, Inc. | Alex Bunk Building Materials Lumber (Retail Dealership)
Toman Eng Co | Harvey Schneider www.tomanengineering.com | Architecture Engineering | Planner or Designer
Building Buzz | October 2017
2017 Board of Directors PRESIDENT
Shannon Reichenberg Diversity Homes Phone: (701) 751-3999 email@example.com
1ST VICE PRESIDENT
Lynn Klein Gate City Bank Phone: (701) 355-7633 firstname.lastname@example.org
Greg Zenker Northern Plains Plumbing, Heating & Air Phone: (701) 222-2155 email@example.com
SECRETARY/TREASURER Susie Franklin Choice Financial Phone: (701) 751-7282
2ND VICE PRESIDENT
Chad Moldenhauer K&L Homes Inc. Phone: (701) 258-4584 firstname.lastname@example.org
Rory Anderson Verity Homes of Bismarck Phone:(701) 354-2846 email@example.com
Jeff Sattler Sattler Homes Phone: (701)255-7628 firstname.lastname@example.org
Bill Schmid Townsquare Media Phone: (701) 250-6602
Brian Eiseman Stoneshire Builders Phone: (701) 471-6935 email@example.com
Wade Vogel Premier Homes, Inc. Phone (701)226-1809 firstname.lastname@example.org
Marc Menge BNC National Bank Phone:(701) 250-3000 email@example.com
Next 2 Nature Landscape Company | Jared Winters | www.Next2NatureND.com | Landscaping
Garage Logic, Inc. | Darin Martell www.garagelogicinc.com | Planner or Designer | Masonry/Stone Work/Tile Setting/Plaster | Floor Coverings
Professionals building our community through promotion of home ownership, education and legislation since 1958.
MSM Realty, Inc. | Lori Peter Land Development | Real Estate
Redford Signature Homes | Deborah Luptak www.redfordsignaturehomes.com |Single Family Spec/Tract Building | Single Family General Contracting | Remodeling-Residential
Gietzen Construction, LLC | Sam Gietzen www.gietzenconstruction.com | Single Family General Contracting | Building Materials Lumber (Retail Dealership)
Your membership is three-in-one: BMHBA, NDAB and NAHB
BIANCO REALTY SALES AWARDS Bianco Realty has named SHIRLEY THOMAS and JUDY MASLOWSKI “REALTORS® of the Month”! Shirley and Judy had the most closed sales at Bianco Realty for the month of August 2017. Shirley has been a licensed REALTOR® since 2001 and Judy has been a licensed REALTOR® since 2007.
Rocks & Blocks Landscaping, LLC | Andy Thomas | www.rocksandblocks.com | Manufacturing | Landscaping
Bismarck-Mandan Permit Reports
through August 31, 2017
October 2017 | Building Buzz
reetings BMHBA Members,
I hope you are taking a well-deserved, deep breath after a very successful Fall Parade of Homes. It never fails that the parade of homes sneaks up on us and we stress up until the doors open at 6 p.m. Thank you all for accepting the challenge of entering a parade home; our event is successful because of your participation and support.
On to the next endeavor! I recently read an article about complacency and how it slows the engine of progress and it got me to thinking about how that applies to different facets of life especially how it can affect our association. It is easy to get used to something and not even realize that by being complacent we are becoming stagnant.
I often hear the phrase “that’s not the way we used to do it” or “we have always done it that way”. An argument can be had that if something is not broke, why fix it, but what I would like to argue is that why not try to make something better. Now I know there are a lot of things we do in our trade that haven’t changed over the years, but there is at least twice as much that has changed for the better. Just look at the different products that have become available, and more efficient ways of doing things have also been discovered.
Shannon Reichenberg Board President
We have experienced a lot of change within our association in the last 3 to 4 years. We have made many changes to our events, we have made changes to our staff, we have made changes on how we recruit and retain members and we have made changes on how we communicate to our membership. Not every change we make ends up being a keeper, but many of them have and I feel our association is better for it.
One of those changes we made is right around the corner. Last year we combined our Fall Award’s Mixer and GMM and people really liked the format so we are going to do the same thing again this year on Oct. 24 at the Ramada. This is the event that includes voting for new board members, so it is important we attend.
In addition to the Fall Award Mixer, I encourage you to attend the other events we have created for you. Mark your calendars for these other upcoming events:
• Marketing and Sales for Building Professionals
• Fall Awards Mixer & Board Elections
• Trends in 55+ Housing: Learn 18 for 2018 • Fall Building Officials Roundtable • Construction and Contract Law • 2017 Holiday Home Walk
• Holiday Open House- 900 S Washington St.
I look forward to seeing you all soon. All Hands On Deck.
Your President, Shannon Reichenberg
Building Buzz | October 2017
TO WORKING WITH INSURANCE ADJUSTERS
n Aug. 31, a boat makes its way down a flooded residential street in Texas following Hurricane Harvey.
Hurricane Harvey dumped recordbreaking rainfall across portions of Texas last month, forcing tens of thousands of residents to evacuate their submerged homes.
The rebuilding process will be arduous, even for those who have flood insurance. Working with a seasoned builder who knows what to expect and how to collaborate with insurance adjusters is a home owner’s best bet to get their life back in order as quickly as possible. But there are several nuances about the claims process that builders should keep in mind. George “Geep” Moore, owner of MooreBuilt Construction & Restoration in Elm Grove, La., has extensive experience in this area, having managed thousands of insurance claims over the course of his career.
While enroute to Houston to meet with builders and remodelers this week, Moore gave NAHBNow some insights on navigating post-disaster insurance claims: 1. Determining Scope and Price
Insurance estimates need to be extremely detailed: room by room, line item by line item. Moore strongly encourages builders to consistently use estimating software, which will allow them to more efficiently and clearly define the scope and calculate costs.
“The estimate has to be in that type of format if you want to sell it to the insurance company, and do so quickly,” said Moore, who served as NAHB Remodelers chairman in 2012. “Adjusters] will use a similar program, so it makes it easier to compare your estimate with theirs instead of typing it all up in a different format.”
Also, whether the adjuster or the builder completes his estimate first, the other party can easily use that initial estimate as a starting point and, if need be, modify it during the subsequent walk through. The most important thing is to ensure the scope of work is agreed upon by all parties before initiating discussions about price. 2. Negotiating
It’s the home owner’s job to pay the deductible and any other out-of-pocket costs that are required. But it should be solely on the shoulders of the builder – who has the most expertise in the field of construction – to negotiate with the insurance adjuster.
“No one knows the scope of work needed to get the job done right better than the builder,” Moore said. “Often times, [the builder] will need to educate the adjuster on certain aspects. But by demonstrating your knowledge of the subject and breaking it down as much as possible, you can come to an agreement much more easily.” 3. Document, Document, Document
Thorough documentation is the most critical element of the entire process, and
a lot depends on how comprehensive your photos are. Take pictures at each phase of the project, especially before any work begins, and then again once all of the furniture and other household items are removed. More photos will need to be taken after the tear-up is completed, and again when all of the drying equipment is in place. 4. Staying on Top of the Claim
If your client’s insurance makes payment to the home owner and the mortgage company, the mortgage company most likely will control the cash flow. Make sure you know their rules before you start so that you can make sure they release funds in a timely manner. “You will have to be involved to help your client get your money,” Moore said. “It may not be what you want to do, but to help your client and yourself, you must help guide this process with your best negotiating skills.”
Also, continually follow up with the adjuster so that your client’s claim isn’t neglected or put on hold. This frequently happens, especially if another storm (i.e., Irma) occurs in another part of the country and your adjuster gets pulled to that area.
Above all, take every precaution to stay safe while working in homes that sustained structural damage. NAHB has created a list of resources to help keep volunteers and workers safe during the cleanup and reconstruction efforts. More information is also available in NAHB’s Natural Disaster Resources Toolkit. October 2017 | Building Buzz
CITY & COUNTY Appraisals…Can You Meet the Date for Closing? In the last couple of weeks, the Bismarck Mandan Board of Realtors (BMBOR) office received three phone calls from lenders experiencing challenges with contracts written for 30-day closings. Please be aware this may not be feasible. The BMBOR asked a few appraisers how their schedules looked: one said 3-4 weeks, and a few said 5-6 weeks. Please be aware of this when writing your contracts to avoid unmet expectations and to assure a smooth transaction for everyone involved. Republished from the BMBOR Newsletter
Fill Station Now Available with Prepaid, FOB System The Bismarck Public Works Bulk Water Fill Station is now available through a prepaid, key fob system. Requests to start a prepaid account can be made with John at Public Works between the hours of 9 a.m. and noon, Monday through Thursday. Key fobs will be available for pick-up 24 hours later with prepaid activated account. The bulk water fill station is located on the south side of the Public Works parking lot. The new system will provide more reliable delivery to the customer.
ROLL OFF CONTAINER SERVICE 701-471-5650 FOR HOME, COMMERCIAL & CONSTRUCTION
Building Buzz | October 2017
Community Rating Reduces Flood Insurance Premiums Residents and business owners in the City of Bismarck and Extraterritorial Zone (ETA) can now enjoy a reduction in flood insurance premiums because of the city’s active participation in the National Flood Insurance Program’s (NFIP) Community Rating System (CRS). In addition to lower premiums, the CRS program helps to reduce the threat of damage due to flooding. As a result, flood insurance premium rates are discounted to reflect the reduced flood risk resulting from the community actions that meet the goals of the CRS. Discounts for individual policy holders takes effect on or after October 1, 2017 depending on the renewal date of the individual’s flood insurance policy. The CRS program is a voluntary incentive program that recognizes and encourages a comprehensive approach to floodplain management and rewards communities that exceed minimum floodplain management requirements. The CRS program provides benefit to Bismarck as the city earns credits by taking action to better manage risk in categories such as public information, mapping and regulations, flood damage reduction, warning and response, stormwater and drainage system maintenance.
The CRS program benefits the Bismarck community through floodplain management best practices and discounts on flood insurance premiums for residents within Bismarck and the ETA. There are approximately 287 eligible flood insurance policy holders within Bismarck and the ETA that qualify for a 10% discount and 56 eligible policy holders that qualify for a 5% discount. There are also approximately 277 preferred risk policies. The Preferred Risk Policies are not eligible for the CRS discount because they already have the best premium available. The preferred risk policy is only available for properties in zones that are shown to have a low risk of flood damage. Those within the ETA will want to ensure their flood insurance policy identifies the Bismarck Community ID number (CID) specifically on their flood insurance policy to ensure the discount is applied for new and existing policies. For more information visit www.bismarcknd.gov/floodresources or contact your insurance provide.
State of the Cities Scheduled The Bismarck-Mandan Chamber of Commerce is hosting the State of the Cities event on Nov. 7 at the Ramkota Hotel. Mayors Tim Helbling and Mike Seminary will present statistics Mandan and Bismarck, respectively. Registration for the breakfast is available online at bismarckmandan.com.
CITY & COUNTY Redevelopment Assistance Available North Dakota Housing Finance Agency is accepting applications for $460,000 through the Neighborhood Stabilization Program 3. The federal program supports the acquisition of foreclosed, abandoned or vacant properties in targeted areas for redevelopment into affordable rental housing. “Preference will be given to applications that create housing for extremely low-income households,” said Jolene Kline, NDHFA executive director.
NDHFA recently updated its NSP3 Action Plan to be more reflective of the state’s needs. The new target areas are in the communities of Bismarck, Dickinson, Fargo, Minot, West Fargo and Williston. To be eligible for the available funds, a property must be located within a census tract with a needs score of seven or greater. A mapping tool on the U.S. Department of Housing and Urban Development’s website, www.huduser.org/ NSP/NSP3.html, is used to determine a property’s score.
Applications must be received by 5 p.m. (CDT) on Oct. 27, 2017. More information is available online, www.ndhfa.org, or by contacting NDHFA’s planning and housing development division at (800) 292-8621 or firstname.lastname@example.org.
Small Developers Invited Attend Clinic
An Incremental Development Clinic has been organized by a group of motivated local professionals who are interested in pursuing an incremental, neighborhood-oriented approach to infill and re-development, and building local momentum and institutional infrastructure around the approach. This event will bring Jim Kumon, Executive Director of the Incremental Development Alliance, to Bismarck on Monday October 16, ahead of Jim’s appearance as a keynote speaker at the ND Downtown Conference in Fargo on Oct 17-18. In a variety of sessions throughout the day, Jim will present the principles of an incremental approach to real estate development.
Incremental development is a bottomup, grassroots approach to development. It is a process that helps unlock the potential of locally sourced ideas, driven by locally sourced capital, to transform neighborhoods for the better. It capitalizes on the value derived from a deeper connection to a place that local, small scale developers can offer. Event information and registration is available online at www.IncrementalND.com.
Mandan Approves 2018 Budget The Mandan City Commission tonight approved a 2018 budget of $30.1 million with a contribution of $5.5 million from property tax revenue. After six consecutive years of decreases in the city levy, the budget increases the levy by 5 mills to 64, compared to 59 mills last year. The property tax increase amounts to about $61 for owners of residential property valued at $250,000 with no valuation increase.
The levy increase was necessary because state aid distribution to Mandan, which supports general fund expenses, declined 27 percent or $593,000 from its peak in 2014. Revenue from the highway distribution tax also declined 14 percent or $186,000 over the same period. Due to a severe winter in 2017, the city additionally needed to restore the City’s general fund cash reserve used to pay $480,000 for emergency snow removal. Approximately 26 percent of the property tax revenue increase stems from new construction and exemptions that expired in 2017. Some fund transfers were also made to serve a growing residential and commercial base while making up for reduced state funding.
The City has used $2.5 million of the general fund cash reserves since 2013 to offset revenue shortfalls and one-time capital outlay related expenditures without increasing the general fund mill levy.
The budget also includes a 2.5 percent increase to employee salaries which have remained even since 2015. No new hires are planned for the coming year. City services account for about 22 percent of the total mill levy for Mandan property owners. School District, Morton County and Park District services account for the remainder. The 2018 city budget is posted at www.cityofmandan.com or available upon request by calling the City Finance Department at 667-3213.
Business Owners to Share Lessons Inspiration and information are two things participants can expect to receive from the fifth annual Business Start-Up 101 workshop in Mandan on Thursday, Oct. 26. This free informational session runs from 6 to 8 p.m. at the Baymont Inn, 2611 Old Red Trail. For program details and to register, visit cityofmandan.com/ register or call 667-3485.
The workshop is for anyone exploring the idea of opening a business. Speakers will delve into a variety of helpful resources and services for aspiring entrepreneurs. A panel of business owners will share insights and lessons learned about operating a business. Among the line-up is Jay Schuler, North Dakota Commerce Department Commissioner. Schuler has started and been an investor in several businesses including Giant Sunflower Seeds, Richland IFC, and Ag America Network. He is active in an angel investment fund and has been a judge for Innovate North Dakota, which offers coaching and concludes with idea and venture competitions.
Other workshop speakers will discuss best practices in getting started including components of a business plan, needed financial data, and sources for loans and other assistance. Attendees will connect with representatives of the Center for Technology and Business including the IDEA Center, the Small Business Development Center, and the Lewis and Clark Development Group, plus others who can assist throughout their planning processes. The panel discussion with entrepreneurs includes Schuler as well as Mandan business owners Adam and Kendra Taylor, Taylor Made BBQ; Eve Kostelecky, Brea boutique; and Logan Unterseher, Imagine Home Center. October 2017 | Building Buzz
BMHBA NEWS EDUCATORS BRING CAREERS IN CONSTRUCTION TO LIFE October is Careers in Construction Month, and the BMHBA is recognizing those in our community who play an essential role in building our future workforce through education. Bismarck-Mandan is lucky enough to have valuable programs to develop the future workforce, and dedicated teachers who prepare students for successful careers in the building trades.
The BMHBA is excited to welcome Anton Steckler as the new carpentry instructor at the Bismarck Career Academy and Technical Center, where he instructs 45 students in interior carpentry and framing. Steckler is well-versed in the building trades, having career experience that includes framing, subcontracting for residential construction, 9 years as a builders and 3 years as a commercial building superintendent. Steckler’s college degree in education and the need for change was what steered him to teach at CATC. Steckler noted that carpentry education had evolved since he began in the industry. “Thirty years ago, you could not build a home. Education has gone from small woodworking projects
Elect Your New Leaders The BMHBA is governed by a board of directors. Each fall, members have the opportunity to choose their leaders at the Fall Awards Mixer & GMM. Join us on Oct. 24 at the Ramada to meet the 2018 board candidates and to cast your ballot. There is one builder and two associate seats up for election. You can read about those running by accessing the candidate profiles online at bmhba.com/board-of-directors.aspx.
to a full-scale house,” he said. He also commented on how the students have changed, saying that his current students are more technically advanced than the workers they will be replacing.
The program itself also has evolved, from a modular home built on site at CATC to a stick-built, split-level home on a city lot donated by Triton Homes. Students can drive or receive transportation to the building site where they will gain skills in all aspects of the construction, including concrete, framing, sheet rock and cabinetry. Construction will be completed by the end of the school year in May of 2018.
Following Steckler’s carpentry program through Bismarck Public Schools, students can continue with their post-secondary education at Bismarck State College, where Earl Torgerson has helped students gain the skills needed to lead successful careers for 23 years. He believes that the residential construction industry will continue to grow, and so will the demand for a skilled workforce. Torgerson stresses the advantages of the programs at BSC. “Students receive training on a wider range of skills and are exposed to more professional opportunities,” said Earl. He noted that students who have completed the BSC program show a greater commitment to improving skills and building successful careers. Thank you, Earl and Anton, and all our local educators, for having a positive impact on the building industry!
EOs Celebrate Retirement of Peer
BMHBA Executive Officer and Dickinson Area Builders Association EO Tiffaney Dolechek made a surprise appearance at EO Betty McDonald’s retirement party in Grand Forks last month. McDonald celebrated 19 years with the Forx Builders Association. Cassie Thompson is the new executive officer at FBA.
Pictured left to right: Tiffaney Dolechek, Betty McDonald, Dot Frank and Cassie Thompson.
Building Buzz | October 2017
EVENTS Deck Your Halls for the Holiday Home Walk The BMHBA is excited to host the Holiday Home Walk on Nov. 19. We’ve got a lot of new ideas to drive traffic to participating homes after a successful first run last year. Unlike the Parade of Homes, entries in the Holiday Home Walk don’t have to have been built in the past two years nor be new construction. We welcome remodels, existing construction and builders’ personal homes.
The entry fee is waived for each home you had in the 2017 Spring or Fall Parade of Homes. We encourage you to deck your halls and invite hundreds of prospective buyers into your homes for one day only, Sunday, Nov. 19. Doors are open from noon to 5 p.m. Associate members are welcome to “adopt” a home to help fill it with Christmas décor. Contact the BMHBA at 222-2400 or visit www.holidayhomewalk.com for details. Registration deadline is Oct. 20.
October 4- Trends in 55+ Housing This webinar will explore trends in the 55+ housing market. Explore ways to make your properties stand out and increase sales momentum. 12:00-1:00 PM at the BMHBA office. Cost is $10 and includes snacks and beverages.
Oct 12- Fall Building Officials Round Table
Members will have the opportunity to communicate directly to building officials to address specific concerns and offer recommendations foe improved department services. Don’t miss this opportunity to be heard by decision makers. 11:30 AM – 1:00 PM at the Bismarck Public Works building. One free admission per member, $10 each additional registration.
Oct. 13- Junior Achievement Exploration Friday the 13th doesn’t have to be scary, and neither does volunteering your time! Join the BMHBA as we encourage members to give back by volunteering for Junior Achievement! Meet past volunteers over coffee and take a look at program curriculum and materials - perhaps you will be inspired to make an impact in our schools! Your commitment is minimum, and the benefits last a lifetime.
Junior Achievement offers financial literacy, college and career readiness, and entrepreneurship education to K-12 students in Minnesota, North Dakota and western Wisconsin. JA empowers students to make a connection between what they learn in school and how it can be applied in the real world – enhancing the relevance of their classroom learning and increasing their understanding of the value of staying in school. Register at bmhba.com/events or call Tracy at 222-2400.
Trends in 55+ Housing Baby Boomers represent the strongest growth segment of the housing market. Join the BMHBA on Oct. 4 for webinar 18 Trends for 55+ Housing in 2018 to explore ways to make your properties stand out and increase sales momentum. Topics will include:
• Major trends for the 55+ housing market
• Desired floorplans and amenities that best fit the needs of 55+ Buyers • Strategies for boosting your 2008 sales
The cost of participation is $10. Beverages and snacks will be provided. Please register at BMHBA.com/events, or call 701-222-2400.
If this demographic group is your niche, consider participating in the NAHB’s 55+ Housing Industry Council. This group is dedicated meeting the unique housing needs of persons 55+, persons 62+, and multiple generations. The 55+ Housing Industry Council is one of the nation’s leading organization’s focused on the needs of the senior housing industry. For more information, visit nahb.org/en/members/committees-and-councils.
Join members who will share their experiences with JA! Perhaps you will be inspired to make a difference in the classroom. 8:30 – 10:00 am at the BMHBA office. Coffee and snacks will be served. This event is free.
Oct. 24- Fall Awards Mixer & GMM
Join us at the Ramada in Bismarck to celebrate the success of the Fall Parade of Homes. Builders will be recognized and new Board members will be elected. 5:30 – 8:00 PM, cost is $30 per member.
Nov.19- Holiday Home Walk.
Enjoy the sights and sounds of the holidays as the
BMHBA features new homes and remodels. Parade of Homes participants are eligible to showcase their homes FREE of charge. 12:00 – 5:00 PM. Contracts due October 20!
Dec. 5- Holiday Open House.
The house member favorite! The Holiday Open house, hosted at the Elks Lodge in Bismarck, sets the stage for the season to come. Enjoy appetizers and beverages at this lighthearted festivity. 5-9 PM, admission is free for members. Register these and all events at BMHBA.com/events, email email@example.com or call 701-222-2400.
October 2017 | Building Buzz
BMHBA NEWS Scholarship Recipients to be Honored
Gather Round with Building Officials
The BMHBA is celebrating Careers recipients by honoring this year’s BMHBA BSC Scholarship at the 2017 Fall Awards Mixer and GMM.
The BMHBA will host its biannual Building Officials Roundtable on Thursday, Oct. 12 at the Bismarck Public Works Building. Join us for lunch as we share our common concerns and recommendations with Bismarck, Mandan, Lincoln, Burleigh and Morton County building officials. We’re turning the table. Members will lead the discussion and encourage the officials to respond. Don’t miss this opportunity to initiate the change you’d like to see. Registration is open online at bmhba. com/events..
Each year three outstanding students in the Bismarck State College trade programs are awarded $1000 scholarships. Eligible students participate in carpentry, electrical, plumbing and HVAC programs at BSC. The scholarships are provided through generous donations and the efforts of the BMHBA Annual Fundraiser Picnic. The association strives to grow the scholarships in hopes of providing more assistance to students who will fill high-demand jobs. And the Winners Are:
Seth Privratsky, Carpentry Bryce Fettig, Carpentry Mark Colvin, HVAC
There is still time to contribute to the BMHBA BSC Scholarship fund. Attend the Fall Awards Mixer on Oct. 24 at the Ramada in Bismarck. The social starts at 5:30, dinner at 6:15 with opportunities to support the fund throughout the night. Tickets are $30. Register at bmhba.com/events or call 222-2400.
Home Show Booth Space Continues to Sell Fast Registration will continue to be open exclusively to all BMHBA members until Nov. After Nov., registration opens to those on a waiting list and non-members ready to sign up. Be a part of this area’s largest trade show by getting your business in front of thousands of spectators on Feb. 9 and 10 at the Bismarck Event Center. 80% of booth space has been spoken for, but there is still plenty of prime booth space available. To find out more information, or to register for a booth, visit www. bismanhomeshow.com or call Terri at 222-2400.
Lender Training Available This Fall North Dakota Housing Finance Agency will host lender training in Bismarck this fall.
“The training includes an introduction to NDHFA’s homeownership programs – FirstHome™, HomeAccess and North Dakota Roots, a review of the different loan types, borrower and property eligibility discussion, and how to lock a loan,” said Dave Flohr, NDHFA homeownership division director. Bismarck State College students are recognized at the 2016 Fall GMM as recipients of the BMHBA Scholarship.
Building Buzz | October 2017
The course is open to new and pending participating lender staff, and current participating lender staff who are interested in a refresher.
The training will be held on Oct. 4 at the Comfort Inn, 1030 E Interstate Ave, Bismarck. The session will begin at 9 a.m. and should be completed no later than 1:00 p.m. There are no registration fees, however pre-registration is required.
WHERE HAVE YOU BEEN? If you are an active member of the BMHBA, then chances are you are active with other associations as well. If you are feeling spread thin, and find it hard to attend the usual mixers and networking events, it’s time to consider alternative benefits that are available to BMHBA members. Allison McCarthy, PureWow contributor, highlights ways to capitalize on cocktail hours to expand business opportunities in her article “7 ways to Boost Your Career (Boring Networking Events Not Included).” In the spirit of finding new ways to explore participation, look at how the BMHBA is offering ways to increase profitability while meeting fellow members.
Builders Only Socials- This new event strengthens comradery among builders, the foundation of the HBA. Builders unite in a casual
setting where they can discuss best practices and ideas, find solutions to challenges, or just put business aside and enjoy a beer with good friends.
Embrace Technology- Those of us who are NOT tech-savvy can appreciate how the HBA is using the Internet, social media, and tools like the new Parade of Homes app to promote members and their businesses. Let the HBA show you how to use technology. Expert Advice- We are happy to lean on the National Association of Home Builders (NAHB) for access to advice from building your business to safety training, and everything in between. Through online classes, webinars and live training, the HBA can improve your marketability and increase opportunity.
Let’s Build Together.
Eye in the Sky- When times are busy, it’s nice to know that the HBA is providing up-to-date information about your community. Stay in tune with our e-newsletters and monthly Building Buzz magazine for the latest on issues impacting the residential building industry. See what your peers are up too; you might get some ideas on how to get involved in the community!
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October 2017 | Building Buzz
WILL LUMBER PRICES SURGE IN HURRICANES’ WAKE? NAHB urged Congress to pass the bipartisan Save Local Business Act, legislation that would boost housing affordability and provide small businesses certainty and predictability by clarifying under law what constitutes a joint employer.
Testifying before two subcommittees of the House Committee on Education and Workforce, NAHB Chairman Granger MacDonald said, “The line that once clearly separated two employers is so blurry that neither I nor others in our industry can see where it lies. As a business owner, this bipartisan legislation would provide clarity by ensuring that I am held accountable for my employees, but not those of another company. Codifying this definition will provide the legal certainty every employer deserves.”
In 2015, the National Labor Relations Board (NLRB) overturned decades of precedence in the case of BrowningFerris Industries of California Inc. by radically expanding the traditional test for joint employer status in which a company must exercise “direct and immediate control” over an employment relationship. Under the expanded standard, a company could be considered a joint employer if it has indirect control or the potential to determine the key terms of an employee’s employment, including hiring and firing, supervision, scheduling and the means and method of employment.
“In the aftermath of Hurricane Harvey, my focus is on getting families back into their homes,” MacDonald told lawmakers. “We have endured and rebuilt from bad storms before, and we’re doing it again. But this time, it is with the added worry of whether my company could be held liable for the practices
EPA WAIVES LEAD PAINT REQUIREMENTS FOR CERTAIN RENOVATIONS
As recovery and rebuilding efforts begin in Texas and Florida following devastating hurricanes, many may wonder if EPA’s Lead: Renovation, Repair and Painting Rule still applies to these post-disaster renovations. Normally, renovations in homes built prior to 1978 must be supervised and/or performed by a certified renovator using lead-safe work practices.
However, when the work is considered an emergency renovation, which is defined as one that results from a sudden, unexpected event, certain certification and lead-safe work practices are waived. But other provisions remain in place, including post-renovation cleaning and recordkeeping requirements.
EPA has provided additional information on the emergency renovation provision on its website, and NAHB is working with EPA to provide greater clarity to our members working in pre1978 homes that were damaged by hurricanes Harvey and Irma. For more information on disaster recovery, please visit the NAHB Natural Disaster Resources Toolkit.
Building Buzz | October 2017
of contractors, third-party vendors, and suppliers that we have hired to help with this job and over whom we have no direct control.”
The NLRB’s expanded joint employer standard has provided little clarity on the level of control sufficient to create the jointemployer relationship, leaving home builders and other small businesses with no certainty or predictability in exercising many commonplace business practices. Exposed to unlimited and unpredictable joint employment liability, small businesses are finding it increasingly challenging to comply and therefore compete. “This is particularly problematic for residential building firms, the majority of which have less than 10 employees and rely on an average of 22 subcontracting firms to build a home,” said MacDonald. “Limiting or deterring the use of independent contractors and subcontractors will reduce the number of local home building firms, raise construction costs and harm housing affordability.” The Save Local Business Act offers a common-sense solution to the ambiguity created by the Browning-Ferris decision by affirming that a company may be considered a joint employer of a worker only if it ‘directly, actually, and immediately’ exercises significant control over the primary elements of employment. “We urge Congress to act swiftly on this bipartisan bill, which would restore the traditional definition of joint employment that had been in effect for decades before the BrowningFerris decision and provide a level playing field for all small businesses,” said MacDonald.
DRYWALL PRICES EXPECTED TO RISE While most building materials prices will likely increase in the wake of hurricanes Harvey and Irma, the price for gypsum might be the first to ascend as a result of the storms.
In August, prices for gypsum products — drywall being a major one — fell for the first time in three months. But as NAHB economist David Logan noted in a recent Eye on Housing blog post, remodeling projects will be the first feasible construction efforts for much of Texas and Florida. This promises to drive up demand for drywall and cause prices to climb before those of other building materials. For example, demand for framing lumber and concrete will rise later on because larger-scale, structural rebuilding projects usually take longer to get underway.
Unfortunately, builders have become all too familiar with the recurrent price increases for softwood lumber. A brief reprieve in June was the only month thus far in 2017 in which lumber prices recorded a drop (3%). But overall, prices have increased 22% since the start of 2017. Go to EyeOnHousing.org to read a more detailed assessment.
New Videos Help Ensure Safety on the Job
MESSAGE FROM NAHB CHAIRMAN With Congress expected to take up work on tax reform legislation shortly, your NAHB leadership must prepare to advocate for the right bill based on our members’ priorities on some key elements. The Sept. 18 “Tax Reform and the Housing Industry” interactive webinars kicked us much closer to the goal. Thank you!
If you were not able to participate in one of these sessions, it is not too late to get an understanding of the issues at hand. Listen to this recording of the webcast online at https://goo. gl/SPbNK7. The session discusses:
• The mortgage interest deduction, state and local tax deductions and their effects on single-family sales
• The home equity deduction, energy tax incentives and other issues affecting remodelers • General business tax issues, including the tax treatment of debt
The webcast includes a member question and answer session and a review of some of the priorities on which NAHB is seeking input.
Rest assured, the information garnered from these sessions will be used by the NAHB leadership as we develop our tax reform legislative strategy. In fact, the NAHB Executive Board will take this data into consideration when they meet in early October. It is not too late to weigh into the discussion. Review the webcast recording and provide your thoughts to NAHB at firstname.lastname@example.org. Remember, the webcast recording is a member-only resource, so you must be logged into nahb.org to view it. Thank you for your input.
• Multifamily issues, including the LIHTC, 1031s, and carried interest
NAHB, in collaboration with the Job-Site Safety Institute and the National Housing Endowment, has released three new Video Toolbox Talks on safety in the residential construction industry. They cover nail gun safety, personal protective equipment, or PPE, and the feature for this month: housekeeping and fire safety.
Good housekeeping is not only about keeping a clean job site, it lays the foundation for accident and fire prevention. The key is removing hazards so you don’t have to work around them. The video covers several important steps to prevent and address dangers on the job site. Here are some of the main points discussed.
• Housekeeping and Fire Safety Tips
• Keep the worksite clear of extraneous items and clean up spills immediately • Be aware of fuel and ignition sources on the jobsite and ensure proper placement and storage
• Ensure rooms have proper ventilation before spraying paint and other solvents
• Ensure temporary heaters are being properly used
• Keep fire extinguishers in easy reach and make sure workers are trained to use them
For the Best Prices on a Complete Insulation Package or Material, Contact …
• Know and communicate your company’s fire protection plan
For more information and to view other Video Toolbox Talks, please visit nahb.org/toolboxtalks. Each is available in English and Spanish versions, and more videos on safety in residential construction are coming soon.
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October 2017 | Building Buzz
NDAB NEWS Monthly News from the North Dakota Association of Builders
I, along with about 20 NDAB members and 500 other business and political leaders from across the state, had the opportunity to see President Trump in person at the refinery in Mandan on September 6. He was there to promote his tax reform agenda. Whatever your view of the current president, most of us don’t have the opportunity to be that close to the President of the United States very often in our lives.
NDAB urges ND Delegation to preserve housing incentives in tax code reform
Kim Schneider CEO
The North Dakota Association of Builders (NDAB) supports home ownership and rental housing incentives in the current tax code and specifically the deductions for mortgage interest and state and local property taxes as well as provisions that encourage development of affordable housing.
NDAB is proud to have welcomed President Trump to North Dakota while he pushes for tax reform. Over 20 NDAB members attended this historic event to learn The President spoke of many of the top agenda items that we have more of his proposal for income tax reduction, a fair tax code and ecoheard in the news, such as lowering the corporate income tax rates, nomic development. We urge the members of our North Dakota consimplifying the tax code, eliminating the death tax, and gressional delegation to work in a bipartisan fashion to make federal encouraging businesses to bring back profits they have parked tax reform a reality. overseas. I think that most of us believe there is a need for tax reform. Of course, getting Congress to join together and NDAB is a staunch defender of the mortgage interest deduction, which compromise on some of the issues that they don’t agree upon will has been a part of the tax code since its inception in 1913. This deducnot be easy. tion is an essential tool for younger middle-class buyers looking to enter the housing market and move up as their families grow. The A few months ago, I wrote about the tax advantages of owning a mortgage interest deduction amounts, set in 1987, have not been adhome. There are several policy justifications to keeping those justed for inflation in 30 years. It is time to address the levels of the advantages in place. The mortgage interest deduction, in deduction in order to bring it into the modern times of costs, affordaparticular is a critical tool for younger middle-class buyers looking bility and income levels to improve the buying power of the middle to enter the housing market. class. I believe a well thought out and constructed tax reform plan will benefit our economy and help provide additional investment from the businesses community. However, it is important that the tax advantages of home ownership remain in place. We must continue to reach out to our Congressional delegation. As I stated before, it is our job to promote these benefits to the public and the public officials so they see the value in keeping pro-housing policies in place. NAHB will do the same on our behalf to keep in place the tax advantages of home ownership on the national level. Eric
Many tax reform proposals being discussed have suggested reducing or eliminating the mortgage interest deduction; the Low Income Housing Tax Credit; the capital gains exclusion for home sales, and the deduction of property taxes. These proposed tax increases would further depress home prices, put countless more home owners underwater, and trigger a new wave of foreclosures. Eliminating or scaling back these vital housing incentives would also shrink the local tax base of many communities, causing already cash-strapped state and local governments to further cut jobs and essential services. In addition, the building industry is just one of many industries comprised of multitudes of small businesses; to ensure that our future tax code is truly pro-growth, Congress must maintain a business interest deduction for small business. NDAB leaders thank President Trump for his leadership and have confidence that the White House and Congress will do the right thing for home buyers and for America. We will continue to engage in this process, jointly with the National Association of Home Builders and our local home builders associations across the state of North Dakota. Kim Schneider NDAB Chief Executive Officer
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 email@example.com to contribute or learn more! North Dakota Association of Builders ❖1701 Burnt Boat Drive, Suite 201, Bismarck, ND 58503-0801 ❖701/222-2401 or 800/326-4746 ❖www.ndbuild.com
Building Buzz | October 2017
AROUND THE STATE A big thank you is extended to our Event Sponsor, Marvin Around the State Windows; Brat Lunch Sponsor, First State Banks; and all of our
Dickinson Area Builders Assoc
Tiffaney Dolechek, Executive Officer Bismarck/Mandan HBA for donating a Decorating Services, Top Recruiter; Ken prize sponsors. hole and door 701-483-0044 | dickinsonareabuilders.com computer for our new Executive! Krajsa, Bell State Bank & Trust, Top Dot Frank, Executive Officer • Also, golf committee for planning a fun day! Spike; George Fraza, Blue Crossthank Blue you to the • The DABA 2nd Annual Parade of Home was September 9th Home show booths are being sold now! 701-222-2400 bmhba.com ShieldHomes, of ND, Top New Spike; & 10th. This year we had five homes built by Venture 8th istothe deadlineBetty for our • TheKen FBAKrajsa hosted a PicnicJanuary in the Park celebrate Award. HBC granted $12,500 vendors. Home show April 15 Homes, Constriction, andCornerstone John Seacrest The BMHBA hasKirschenheiter been busy following McDonald’s retirement.preferred The weather cooperated andiseveryone in scholarships to local high school – 17, 2016 - together! Thank you to all ordinanceConstruction updates in Bismarck and Schneider wasinable and food students and college students or to enjoy the time contact Jackie@willistonbuilders.com for Mandan, Burleigh and Morton Counties. came out to help usquestions. celebrate Betty and her 19 years of planning construction • Our General and Membership meeting is September 10thon enrolling in thewho All next are reviewing updating dated programs. service to the FBA.. where we will have guests from NDAB and NAHB speaking
codes. Eyes are currently on permit cost
Our December General Membership
and Themember HBA of F-M held a PAC Social with andand development tochanges our board membersstandards. about new updates, meeting will be held on thescheduled 17th • The 3rd Annual Chili-Cook off tournament was for special guest Jerry Howard to talk about benefits. A housing analysis conducted by Bismarck October 14th. The FBA will also be hosting its 1st Annual Bean issues NAHB is working on in D.C. and and Mandan outlines a need for an Toss along with it. We are very excited about they tie in locally. TheBag event wasTournament a • Bismarck Dickinson executive officers Dot &how Tiffaney Thank much to our Annual additionaland 7,786 owner-occupied homes this event and hope to see you manysofaces there! Please call the success with 75 members in attendance. traveled Grand for EO Banquet Sponsors! Your support by 2030.toThe HBAForks is working onBetty’s a task retirement party and office if you are interested in having a Chili or Bean Bag team Just under 20 members attended a Lunch toforce welcome the new EO Cassie of to the her new position! to explore implementation helped us to put on a great event! We Session with local building officials to talk study’s recommendations. had a great crowd and a fun evening about the latest issues in residential Members elected a new board celebrating the year end and Home Builders Assoc. ofBuilder Fargo-Moorhead construction. Minot Association of Buildersall our amazing Award member at the Fall GMM on Nov. 24 to fill recognizing Bryce Johnson, Chief Executive Officer The New Year Celebration & City Night is Past President Vance Vetter’s seat. The Elysha Head, Executive Officer We are already looking winners. 701-232-5846 hbafm.com on Jan. 28 at the Radisson in Fargo. 2016 board| of directors will be sworn in at forward to doing it all again next year 701-852-0496 | minotab.com Mayors from Fargo, Moorhead, West the Annual Banquet on Jan. 14. in Bismarck! • The HBA of F-M Awards Gala & Annual Meeting isFargo, Oct. 26. Dilworth & Oxbow in Parade of • will Thebe2017 Homes was a hit! With higher attendance Members The BMHBA to NDSU. attendance and participate on a mayoral lookwelcomes forward all to members hearing from than last year, MAB is excited to bring back the Parade year attend a Lead Renovator and Lead
panel. We will also have special guest Al
and establish it as a community event. Renovator Initial and Refresher courseRichman andJaeger, • Men’s Basketball Head Coach David seeingSecretary who of State.after If youyear would on Nov. 30 and Dec. 1, top respectively. like to attend, please visit the events wins the Association’s awards. • MAB hosted its first Breakfast with the Builders on September Visit bmhba.com/events to register. calendar at www.hbafm.com. 21st. NAHB rep Alex Martindale visited with MAB members • Home Builders Care of F-M Foundation, HBA of F-M’s charity, Dickinson Area Builders Assoc. and filled them in on what NAHB does for members on a daily Forx Builders Association took part in a Key Ceremony for Army Master Sergeant Eric Platinum Sponsors—Kuntz Builders, Irene Schafer, Executive Officer basis. Betty McDonald, Executive Officer Marts Aug. 19 to welcome him into his new home. Thanks to Inc. and Winn Construction, Inc. 701-483-0044 dickinsonareabuilders.com 701-746-4536 forxbuilders.com • October brings Hard Hat Happy Hour at Arny’s 2.0 Lounge the generosity of HBA members, along with the hard work of and is looking forward to meeting some new HBA Ourmember regular GMM at the Eagles and was buildheld coordinator Dan Parrow, ISR Homes, Silver Sponsor—ProBuild There was good attendance at Bottle Slate Shop. MAB Club on November 11 with a moment of members and good drinks! the home’s cost was $150,000 less than the average Homes Interior Design’s November Builders after silence honoring our veterans. Sponsor—Bosch Hours. Thank you Alissa. for our Troops project. • Preparations haveNDAB-PAC started for Reception the 2018 Home and Garden Our Home Show committee is busy Lumber Co. The December Builders after Hours willtuned be Show! Stay for more details! • The HBA of F-M hadShow another sold-out golf outing in August. planning our Home in April, hosted by the Membership Committee and
updating andwas adding newfor features. Over $3,000 raised NDAB-PAC over the summer’s Banner Sponsor—Roers West, LLC the Board two of Directors at Keith’s Security Williston golf Ouroutings, main focus right now is on World. Jim Bisson owner of Keith’sArea Lock &Builders Association thanks to the support of HBA members. Executive Officer Key will be retiring theJamie end ofMontgomery, December the State Meeting here in Dickinson. We • The Parade of Homes wasthis a success with 54 and newly we will be helping701-572-5744 him celebrate this areFall looking forward to making a | willistonbuilders.com Also, Thank you to the NDAB 2015 special nighthomes for Arnold as he is projects. milestone. constructed andKarsky five remodel Partners! We truly appreciate your • Parade of Homes was held in late September. installed as our State President. Our Home Design and Garden Show will support and we have enjoyed serving Builders Following that, we also busy planning our be held April 1, 2 & 3 at the Alerus Center. you throughout the entire year! Forx Association annual Christmas Party. Newly elected CassieVice Thompson, Executive Officer Minot Association of Builders President, Val Voelkering is busy with 701-746-4536 | forxbuilders.com Executive Officer her committee putting final touches to a very special evening at the Elks Club. minotab.com • The FBA hosted the 24th Annual Golf Outing 701-852-0496 on September
7th. WeWe would like to take this opportunity to King’s Walk Golf Course. hosted a total of 144 golfers at We are having a “Holiday Open House” for
extend an invitation to Kim and Heather and other associations to attend our Christmas party. Merry Christmas and Happy New Year to everyone!
Bryce Johnson, Executive Vice President hbafm.com 701-232-5846
Thank you to everyone who attended our Awards Gala & Annual Meeting. The HBA of F-M celebrated award winners and scholarship recipients with over 200 of its members. The awards went to Clay Dietrich, Dietrich Homes, Inc., Builder of the Year; Paul Krabbenhoft, Coldwell Banker First Realty, Associate of the Year; Heritage Homes, BEAM; Dan Beecher, Foam Doctor’s LLC, Extra Mile; John Koerselman, Red River Drywall &
our members here at the office December 15th from noon-7pm with food and beverage.
Williston Area Builders Association Janna Lutz, Executive Officer 701-572-5744 willistonbuilders.com
WABA welcomes new incoming board members: Lance Bevier of Tractor and Equipment Co., Joan Mainwaring of American State Bank and Trust Co., and Bob Radermacher of Bakken Contracting. Mark Schneider, LJA, was sworn in as our incoming WABA President at our Annual Meeting in November. Top Spikes were also recognized: Bill Murphy and Dave Nordenstrom became Life Spikes in 2015! Special thanks to Dot Frank and the
North Dakota Association of Builders
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
December 2015 October 2017 | Building Buzz
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PAID 2600 Gateway Ave., Ste. 1 Bismarck, ND 58503
UPCOMING BMHBA EVENTS Fall Awards Mixer & Board Elections - Oct. 24 at 5:30 pm 2017 Holiday Home Walk - Nov. 19 - 12:00 pm Holiday Open House- Dec. 5, 5:00 PM - 9:00 PM BMHBA Annual Banquet - Jan. 25, 5:30 PM - 8:30 PM
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