September 2012 Building Buzz

Bismarck-Mandan Home Builders Association

Building Buzz Sept. 2012 Issue 9

www.bmhba.com Save the Date!

Oktoberfest GMM on October 11

Fall Parade of Homes is Right Around the Corner!

More info on page 6.

What’s Inside: 2 Permit Report 3 President’s Letter 4 Calendar of Events 4 2012 New Members

5 Membership Highlight Armor Interactive

6-7 News & Events

Fall Parade of Homes Builder & Associate of the Year

8 City Beat

Talk Housing with Mandan Mayor

9 NAHB Top Priorities 10 NDAB News

Page 2

BMHBA Building Buzz

September 2012

Building Buzz Publisher/Editor: Roxanne Jacobson Layout Editor/Writer: Chelsea Gleich

Published by the Bismarck-Mandan Home Builders Association 2600 Gateway Ave., Suite 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730

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

Scan to visit www.bmhba.com

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

Bismarck-Mandan Permit Reports Through July 2012 BISMARCK - monthly/yearly permit reports can be found at www.bismarck.org Permit Type

YTD 2012

YTD 2011

New Residential

Single Family Detached

Single Family Attached Duplex

3 or 4 Unit

5+ Unit Residential Garages New Commercial Alter Public

351/$82.78M 261/$47.1M 66/$11.22M 6/$1.82M 12/$6.83M 6/$15.81M 43/$.389M 37/$7.43M 3/$.048M

222/$39.38M 166/$29.42M 52/$7.9M 1/$.238M 3/$1.82M 0/$0M 35/$.341M 30/$7.37M 10/$2.41M

MANDAN - monthly/yearly permit reports can be found at www.cityofmandan.com Permit Type

YTD 2012

YTD 2011

New Residential

Single Family

Two Family Condos Apartments Remodel and Additions New Commercial Alter Commercial

107/$29.93M 100/$24.99M 0/$0M 4/$.86M 3/$4.08M 79/$1.36M 10/$5.43M 24/$4.59M

56/$15.08M 36/$9.74M 2/$1.33M 16/$2.44M 2/$1.57M 60/$.76M 6/$8.36M 14/$.54M

September 2012

BMHBA Building Buzz

Page 3

A Word from Our President: Bridging the Gap Between Builders and Realtors A few weeks ago, I and several others from the BMHBA had a roundtable discussion with representatives from the Bismarck/Mandan Board of Realtors (BMBOR). The purpose of the meeting was to discuss how we could begin to work together toward our common goals. The Chad majority of real estate firms Moldenhauer in the area are members of Board President our association, as well as the BMBOR itself. However, either Realtors do not know they can attend our events, or they are unaware of those events. In order to increase Realtor attendance at our meetings, we decided we would start notifying the BMBOR about our events and invite Realtors to the February Fun Night hosted by Jerome Distributing as a networking opportunity for Realtors and members of the BMHBA. We also decided that we would set up a meeting once a year between the BMHBA and the BMBOR in order to discuss the issues that our associations are facing and how we can address them collectively.

The other main topic of discussion was how we can avoid the somewhat inherent conflicts which occur between builders and Realtors and attempt to establish a course of conduct. On the builder side, the main issues are that often a buyer agency relationship is billed as a “free service,” or buyers are often unaware of the details of a Realtor’s compensation on a custom home build. For builders, conflicts can arise when Realtors seek a commission when they are not the procuring cause of the sale. On the Realtor side, some builders encourage buyers to subvert their realtors in order to get a better price, or a buyer may attempt to work directly with a builder

in order to do the same knowing that they have already established a relationship with a Realtor.

Ultimately, the way we can avoid many of these inherent conflicts is by educating buyers as well as Realtors and builders. The first way that Realtors can educate their buyers is by having a signed agency agreement which lays out the role of the agent as well as how they will be compensated on both a home that is listed on the Multiple Listing Service as well as one that is being sold by a builder or private party. If the buyer chooses to build, the relationship between the builder, buyer and realtor should be agreed upon at the outset. In our meeting, we agreed to work on a standard builder registration form that would be signed by the builder, Realtor and even the buyer which would define the terms of the compensation as well as the Realtor’s role throughout the process.

This form would be able to be downloaded from the BMHBA and BMBOR websites. The assumption is that if the roles of each party are laid out from the start, the odds of a conflict happening later will be greatly reduced. In order to educate builders on buyer agency relationships, we decided to invite a Realtor to present at a membership meeting throughout the year and/or write something in our newsletter. In order to educate Realtors on what builders expect, a member of the BMHBA will be invited to speak at one of the BMBOR’s functions as well as write a letter that will be attached to one of the weekly emails which are sent to members.

This may all seem like an exercise in bureaucracy.

However, at the end of the day, both builders and Realtors are trying to sell homes. There can be no doubt that we will each sell more homes through cooperation rather than competition. If we can continue to open up the lines of communication though education and collaboration, we can continue to work towards our common goals.

Do you want to promote your business to our members? Advertise here!

We are now offering a new, affordable ad option at only $25 a month.

Call 222-2400 or email Chelsea@bmhba.com for more info.

Page 4

BMHBA Building Buzz

Calendar of Events September 25: BMHBA Board Meeting September 27-30: Fall Parade of Homes October 11: Oktoberfest GMM at the Doublewood Inn October 23: BMHBA Board Meeting November 8: Associate GMM & Board Meeting at the Elks Lodge December 13: BMHBA Board Meeting & Holiday Open House at the Ramkota *All Board Meetings are held at the BMHBA office

September 2012

2012 Board of Directors

PRESIDENT Chad Moldenhauer K & L Homes, Inc. PO Box 7188 Bismarck, ND 58501 Phone: (701) 258-4584

1ST VICE PRESIDENT Eric Brenden Northwest Contracting 3420 E Century Ave. Bismarck, ND 58503 Phone: (701) 255-7727

SECRETARY/TREASURER Minda Lloyd ND Guaranty & Title Co. 201 45h Ave. NW Mandan, ND 58554 Phone: (701) 663-5362

BOARD MEMBER Scott Moran Hallmark Homes 7404 Moonlite Rd. Bismarck, ND 58503 Phone: (701) 471-7634

PAST PRESIDENT Scott Duchsherer Prairie Aire Homes, Inc. 843 Longhorn Drive Bismarck, ND 58503 Phone: (701) 258-5733

BOARD MEMBER Paula Haider Haider Glass Specialties 1717 Commerce St. Ste. A Bismarck, ND 58504 Phone: (701) 250-6787

BOARD MEMBER C.J. Schorsch Fleck’s Furniture & Appliance 313 East Main Ave. Bismarck, ND 58501 Phone: (701) 323-0891

2ND VICE PRESIDENT Vance Vetter Vance Vetter Homes 2500 Railroad Ave., Unit A Bismarck, ND 58501 Phone: (701) 751-8218

BOARD MEMBER Mike Hopfauf Hopfauf Custom Builders PO Box 425 Mandan, ND 58554 Phone: (701) 663-7691 BOARD MEMBER Greg Zenker Ferguson Enterprises 2817 37th St. NW Mandan, ND 58554 Phone: (701) 663-2446

2012 New Members

We would like to thank our new members for joining us, and welcome them to the association. If you know any of these members, please encourage them to get involved and attend BMHBA functions with you.

AME Coatings M.I.C Drywall, Inc. Anyleaks, Inc. Mind Over Material Arrow Service Team Mr. Squeegee Window Cleaning Blend Home Design OSI/ISI/Sunny Maids Boulder Homes Prairie Supply, Inc. Bremer Bank Quality Title Dove Painting Satellites Plus Fireside Custom Homes ServiceMaster G & J Awning & Canvas Professional Services GR-8 Builders Specials Delivery Granite Creations Structural Materials Hunt Construction Titan Machinery Les Mowing Visionary Homes Luanna (Holst) Fisketjon Weisz & Sons, Inc. Milestone Builders

September 2012

BMHBA Building Buzz

Membership Highlight

Page 5

Armor Interactive: One-Stop Shop for Marketing, IT and Web

By Chelsea Gleich

Looking for a one-stop shop for all your marketing, web design and IT needs? Look no further than Armor Interactive. The company was formed in January 2010 as three great companies specializing in these services for over 18 years joined forces as one. “We thought it’d be a great idea to start fresh with a new brand and haven’t looked back,” said Shaun Ahlgren of Armor Interactive.

Unlike many web design and IT companies, Armor Interactive is able to fulfill all their clients’ needs in house, without having to outsource or use third party software. Armor Interactive knows the importance of building relationships with their customers, and their customers value that as well. It also cuts down on any miscommunications that could occur with outsourcing.

Just as technology is always changing, so are the products and services available from Armor Interactive.

Shaun described one of their current projects: “Right now we are implementing systems and software to focus more on the prevention of problems rather than the reaction to a problem. In the IT industry it is pretty easy to wait for someone to have a problem and then run out and fix it. But we want to do small maintenance things that can prevent big problems.”

Shaun said that his favorite part of his job is helping to transform companies with little to no current branding into “a brand that is recognizable and, in return, generates additional income on several levels.” Armor Interactive offers branding services including logo design, print publication design (brochures, business cards, etc.), ad set-up, web design, search engine optimization and more. Since all these services are available under the umbrella of Armor Interactive, it is

Your Company Could be Highlighted Next!

If your company hasn’t been a member highlight featured company before, contact the BMHBA to get on the list.

Being a member highlight is easy!

All you have to do is fill out a questionnaire and we do the rest.

(You may submit your own article if you wish.)

simpler to achieve one cohesive company image.

The greatest challenge facing Armor Interactive is educating the customer on the advantages of using their services, said Shaun, and getting them to recognize the long-term benefits of their investment. Like the saying goes, you’ve got to make hay while the sun shines – an investment in your branding when times are good will serve you well when the economic climate does not.

Page 6

BMHBA Building Buzz

BMHBA News & Events

Open the Door to your Dreams at the Fall Parade of Homes The Fall Parade of Homes is coming up quickly! Make sure to set aside some time Sept. 27-30 to come check out our 16 parade homes across Bismarck-Mandan.

The homes range in price from $195,000 to over $1 million, not including the bonus category.

The Parade hours will be the same as last year: Thursday and Friday 6 p.m. - 8:30 p.m., Saturday 11 a.m. to 5 p.m., and Sunday noon to 5 p.m. All Parade homes must have a builder representative there during Parade hours.

The Parade of Homes magazine, containing the map of the house locations and photos of each home, will be available at local grocery stores the week of the Parade.

If your business would like to advertise in the Parade publication, contact Deb Seminary from The Printers at 255-3422. The Printers will handle all ad sales in the magazine.

Special thank you to Carpet World and J & R Vacuum & Sewing for donating the prizes this year! By turning in your ballot you will be eligible to win a $500 worth of Hunter Douglas window coverings or a Riccar Vibrance vacuum.

Hope to see everyone out there supporting their fellow members at the Parade!

Builder & Associate of the Year Nominations The BMHBA is now accepting nominations for the 2012 Builder and Associate of the Year. We are looking for candidates who have excelled over the past year in the areas of: member spirit, civic activity, business accomplishments, local association activities and state and national association activities. This is a great way to honor and thank those builder and associate members who have helped make 2012 a success. To submit a nomination, you can request a form from the office or nominate by phone or email. Call Roxy or Chelsea at 222-2400

Board Position Open for 2013

This November, the BMHBA will hold elections for a new board member. One position on the 10 person Board of Directors will be on the ballot. If you’re dedicated to the industry and would like to get more involved in the association, we encourage you to run for this position. You are welcome to nominate another member or yourself for the position. Candidates must be active builder or associate members in good standing.

The term would begin in January 2013 and run for three years.

If you would like to nominate someone or get more information, contact the office at 222-2400.

September Only: Free Expo Pass

2013 NAHB International Builders’ Show January 22-24 | Las Vegas | BuildersShow.com

Did You Know?

September 2012

The member directory at www.BMHBA.com is now searchable by business category.

Try it out today and let us know if your comnpany category needs to be changed/added.

September 2012

Page 7

BMHBA Building Buzz

BMHBA News & Events

Wouldn’t it be great if you could fit your vans and trucks with organizational systems so all your tools and supplies could be transported and found easily? And wouldn’t it be better if you got paid for upfitting your new GM vehicle with these amenities? Now you can.

You’ll receive $1,000 toward your eligible vehicle when you install at least $1,000 of eligible upfit equipment. Eligible vehicles include passenger, cargo and cutaway vans, chassis cab and full-size trucks with professional body installations. Professional body installations include: •Ambulance, Wrecker Bodies, Shuttle Bus, Crane, Utility, High Cube, Catering, Dump, Stake, Contractor, Service, Rollback and others •Transfer of a commercial body (excludes VYU) •Snow Plow Package (VYU)

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These upfit benefits are available in conjunction with the $500 offer (right). Want to learn more? Visit www.GMBusinessChoice.com.

144809 BAHBA Sept Ad.indd 1

NAHB members can get a $5001 private offer toward the purchase or lease of most new GM vehicles. Learn more at gmfleet.com/nahb.

Offer valid toward the purchase or lease of new 2011, 2012 and 2013 model year GM passenger cars and light duty trucks, excluding the Chevrolet Volt, Spark, and ZL1 Camaro. Not available with some other offers. Not valid on prior purchases. Program subject to change without notice. See dealer for details. Take delivery by 1/2/13. ©2012 General Motors

1

8/16/12 1:39 PM

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BMHBA Building Buzz

September 2012

City Beat: Mayor of Mandan, Arlyn Van Beek, Speaks on Development

By Chelsea Gleich

Big things are happening in Mandan, ND. Since Arlyn Van Beek was elected mayor in June, the city has approved a new Wal-Mart in north Mandan, been nominated for the most patriotic city in the U.S., and had some of the highest building permit numbers in years.

Needless to say, Mandan is growing. I got a chance to sit down with Mayor Van Beek and talk about how he sees Mandan developing.

Mayor Van Beek described Mandan as “the Bismarck of yester year” in terms of economic climate. “We have the real estate available for residential and retail, and growing interest in our community,” he explains. Mayor Van Beek wants to encourage development in Mandan.

“I don’t want Mandan to be in the same place it is now four years down the road,” he said. “I want to see us grow, I want to see us prosper.”

The growth in the western part of N.D. is trickling into the central part of our state causing BismarckMandan to increase in population as well. Mayor Van Beek said he sees Mandan as a positive environment for this growth with highly ranked schools, tax incentives and space to grow. While we’ve seen many new homes

going up in south Mandan and the Lakewood area, the mayor said that he sees development moving to the north in the near future following the direction of the middle school and potential new elementary school.

“I want to invite anyone to build in Mandan,” Mayor Van Beek said. He emphasized that he wants to encourage growth in residential and commercial. The goal is to grow Mandan’s commercial base to offset property taxes, he said.

Mayor Van Beek concluded the interview by saying that he is “builder-friendly” and willing to work with the BMHBA with whatever we need.

September 2012

BMHBA Building Buzz

Page 9

National News: What Are NAHB’s Priority Issues?

Protect the MID, Federal Support for Housing Finance (a series featuring different priorities in detail each month)

As you all know, your membership in the BMHBA is a tri-fold membership including the NDAB and NAHB. Your membership dues and PAC donations support advocacy efforts on the national scale. That is why you should know what NAHB’s top priorities for 2012 are. This article continues an explanation of the top seven NAHB priorities.

Take a look at the August issue of the Building Buzz for priorities one and two.

3. Protect the Mortgage Interest Deduction (MID) Americans overwhelmingly oppose any action by Congress to tamper with the mortgage interest deduction, but it could be eliminated or scaled back as federal lawmakers and the Administration are looking at tax increases in light of deficit concerns.

The consequences would be devastating for home owners, the housing market and the nation’s economy. Any attempts to tamper with the mortgage interest deduction would raise taxes on millions of home buyers and home owners and further depress home values nationally, leaving more home owners with mortgages larger than the value of their property (“underwater”) and fueling even more foreclosures.

The mortgage interest deduction has been in place since the inception of the tax code nearly 100 years ago.

More than 33 million home owners directly benefit from the mortgage interest deduction and nearly 70 percent fo the benefit goes to middle-class home owners who make less than $200,000. Many in Congress agree that the mortgage interest deduction must not be tampered with. House resolution H. Res. 25 states that “the current federal income tax deduction for interest paid on debt secured by a first or second home should not be further restricted.” This resolution has more than 190 co-sponsors and supports are urged to talk to their representatives about it. If you want to learn more about what can be done to protect the mortgage interest deduction, visit www.ProtectHomeownership.com.

4. Maintain Federal Support for Housing Finance System In the wake of the financial crisis, the private market is clearly not working. The Federal Housing Administration,

TOP PRIORITIES Fannie Mae and Freddie Mac currently guarantee or insure more than 90 percent of all home mortgage activity and private lending institutions have shown little inclination to step up to the plate. Even with the current high level of federal support, fewer mortgage products are available now than in the past, and these loans are being underwritten on more stringent terms.

Policymakers are now looking at several proposals to wind down Fannie Mae and Freddie Mac and are weighing several options to encourage increased participation from private financial institutions. Complicating the situation, the federal government is looking to trim back the Federal Housing Administration’s participation as well. As the private market assumes a greater role in the mortgage marketplace, maintaining an appropriate level of government support is essential to preserve financial stability, promote investor confidence and ensure liquidity and stability for homeownership and rental housing.

NAHB supports two bills that seek to achieve these goals.

H.R. 2413, the Secondary Market Facility for Residential Mortgages Act of 2011, would stabilize housing and ensure liquidity in the mortgage market by maintaining a federal role in the U.S. housing finance system. Similar bipartison legislation, H.R. 1859, would replace Fannie Mae and Freddie Mac with five private companies that would issue mortgage-backed securities and have government backing.

Look for more of NAHB’s top priorities in the October issue of the Building Buzz.

September is Associate Appreciation Month What can you do to show your appreciation?

1. Do business with an associate member 2. Thank them for their support of the BMHBA 3. Invite a new associate member to join!

Page 10

BMHBA Building Buzz

September 2012

September 2012

Page 11

BMHBA Building Buzz

Visitability: Inclusion for All

Visitability is a building concept that has been around for more than 20 years and was first implemented in Atlanta, Georgia in 1989 when Habitat for Humanity started building their homes with visitability features.

Visibility consists of three basic features in new home construction that will allow individuals with mobility impairments to visit your home. First, is a zero-step entrance with an accessible route that can be at the front door, back door, or through the garage. Second, is wider interior doorways, including the bathroom, of at least 32-inch clear door space.

The third feature is a usable bathroom. One thing to keep in mind is — these features only need to be on the main level of the home.

As an individual who has used a wheelchair for 32 years, I can tell you firsthand that the need for visitable homes is long overdue. Invitations to social gatherings are almost non-existent because I am un-

able to gain entry into their homes. Of my friends without disabilities, only one home has an accessible entrance and bathroom. This is the norm, not the exception, for people with mobility impairments.

What can be done to prevent this type of social isolation? Educate the home buyer, let them know what their options are so they can make an informed choice and by incorporating visitability in their housing design it will allow them to age in place.

This website has more info: concretechange.org Royce Schultze, Executive Director Dakota Center for Independent Living, Inc. 701-222-3636 royces@dakotacil.org Housing Alliance of North Dakota, Board Member NOTE: NAHB provides technical assistance to its members on residential accessibility. NAHB’s policy is to support efforts by its members and affiliated home builder associations to develop voluntary programs promoting accessible design features for single-family construction and remodeling.

Around the State Williston Area Builders Association Tina Hanson, Executive Officer 701-572-5744 willistonbuilders.com  The September general membership meeting will be Thursday, Sept. 20th at the Airport International Inn, starting at 6:30 pm. If your organization would like to sponsor this meeting, please contact Tina at 701572-5744.  The Williston Area BA will be moving into its new office in September.

Please stop by and visit with Tina, and pick up a membership packet.  Economist with NAHB, Dr. Elliot Eisenberg, will be in Williston the week of Sept 24-28 to present the economic impact study of housing done on the Williston area. Details will be sent out soon on Elliot’s visit and presentations.

Bismarck-Mandan Home Builders Assoc.

Roxy Jacobson, Executive Officer 701-222-2400 bmhba.com  The Bismarck-Mandan Home Builders Association is proud to present the Fall Parade of Homes, September 27th – 30th. We have some great homes to showcase this fall. Keep checking the website for more information on the featured builders.  The Oktoberfest general membership meeting is scheduled for October 11th at the Doublewood Inn. Mark your calendars and make sure you don’t miss the announcement of www.ndbuild.com

the winning Fall Parade homes!  September is Associate Appreciation Month, so make sure to take a couple minutes and let your subcontractors know how much you appreciate all they do.

Dickinson Area Builders Assoc.

Irene Schafer, Executive Officer 701-483-0044 dickinsonareabuilders.com  Winning $500 scholarships from Dickinson Area Builders Association are: Brandi Ouellette, attending Dickinson State University; Tanner Johnson, attending ND State College of Science; Alyssa Selinger, attending NDSU; and Whitney Thorpe, attending Bismarck State College.

Congratulations to our winners!  We’ll announce our “Builder of the Year” and “Associate of the Year” at our September general membership meeting at the Eagles Club on September 12th.

Minot Association of Builders Vicky Flagstad, Executive Officer 701-852-0496 minotab.com  September general membership meeting will be hosted by Verendrye Electric on September 18th at their Minot office.  Our Annual Meeting & Awards Banquet will be held on October 9th at the Grand International.

Forx Builders Association Betty McDonald, Executive Officer 701-746-4536 forxbuilders.com North Dakota Association of Builders

 Our Annual Golf Outing will be September 6 at the Valley Golf Course in East Grand Forks.

Home Builders Assoc. of Fargo-Moorhead Bryce Johnson, Executive Vice President 701-232-5846 hbafm.com  The Fall Home Show will be Sept. 28 -29 at the Fargo Civic Center. Hours will be noon – 8 p.m. Friday and 9 a.m. – 6 p.m. Saturday. The show will feature seminars by Todd Weinnmann, Cass County Extension horticulture agent, and Joel Karsten, horticulturist, landscape designer and author, on everything consumers need to know about fall/ winter lawn preparation to outdoor lighting and design and year-round composting.  The HBA of F-M is excited to kick-off the first annual Remodeled Home Tour, a showcase of area remodeled homes! The remodeled project entries will be showcased in conjunction with the final weekend of the Fall Parade of Homes, Sept.15-16 from noon – 5 p.m. both days.  The HBA’s October GMM and Annual Meeting will be Oct. 9 at the Ramada Plaza & Suites of Fargo.

Members who have been with the association for 25 years will be recognized, Builder and Associate of the Year awards will be presented and the 2013 HBA of F-M Board of Directors will be announced. Business attire is requested. 

September 2012

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2012 Technology Training iPad Training Lunch-n-Learn | Sept. 20 What’s my company’s tablet strategy?

This members-only course will be presented by Larry Herman from Verizon Wireless.

Date: Thursday, Don’t forget to If you haven’t asked Sept. 20 yourself that question yet, the time bring your iPad! is now. Tablets, like the Apple iPad, (if you have one) Time: 11:30 a.m. are part of today’s business and Place: Bismarck Public can make yours more efficient, Schools Career Academy productive, and profitable. You’ll learn on the BSC Campus about popular applications and how they’ve helped businesses, large and Cost: $15 per person small, do exactly that. Plan on attending Lunch Included this informational lunch-n-learn to find out more. Whether you already own a tablet computer or you’re considering purchasing tablets for your business, this is the course for you!

Please RSVP by Sept. 13.

Email chelsea@bmhba.com, fax 250-9730, call 222-2400.

Name(s): Company Name: Total Number Attending:

Phone:

Payment Method: □ Bill Me □ Check □ CC (Circle one—Visa/MC/Discover) If paying by card, Card Number: Billing Address: Name on Card: Expiration Date:

Security Code (on back):