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Phone: (866) 773-5598 Email: info@HBAGC.com Greater Chicago Building News is the official publication of the Home Builders Association of Greater Chicago published quarterly by Brandit360 for HBAGC members. Articles appearing in Greater Chicago Building News do not necessarily represent the opinions of HBAGC. Under all circumstances, copyright remains with the original photographer or author. PUBLISHER Brandit 360 312-260-9795 info@Brandit360.com CONTRIBUTING EDITORS Rita Unzner - HBAGC Executive Officer Chantel Beauregard - HBAGC Member - Brandit 360 GRAPHIC DESIGNER Chantel Beauregard - HBAGC Member - Brandit 360 COVER PHOTO Joe Englen Photography TO ADVERTISE CONTACT: Judith L. Nelson - Marketing Director firstname.lastname@example.org 312-260-9792 ext3 Lucas Epstein - Advertising Director email@example.com 312-260-9792 ext4
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Inspired by Excellence Happy New Year! May you have an excellent 2017. Twenty-Five years ago I joined the Home Builders Association of Greater Chicago specializing in remodeling. At that time the Association was a big boys club for large builder members. Custom builders and remodelers were the bastard stepchildren. Now we are the heart and sole of the Federation along with our Associate members. Why do I say “excellent?” Because I am into excellence: it inspires me. As I go through my daily routine, I never know when I will stumble across something excellent that will inspire me. Excellence comes in all shapes and sizes. Here are a few examples of some of the excellent things that inspire me. 1. Perhaps most importantly, excellent character traits in people. People who possess these attributes are people I want to be with. I want them to be my clients; I want them to be my trade-partners; I want to be their customer; I want them to be my friends. Integrity is a key trait to me. Integrity includes honesty, loyalty, and delivering on what you promise. For example, I am a big fan of Lettuce Entertain You restaurants. Their staff treats you unbelievably great. If there is a problem with a meal, they take it back, no questions asked. And they reward me for my loyalty. 2. Excellent talent, combined with great work ethic. Lots of pro athletes have talent. But it is the ones that work hard to make the most of that talent, such as Jonathan Toews or Derrick Rose, that really inspire me. 3. Excellence in my profession. I can be inspired by the work of other architects and designers. I love seeing, great, innovative work. That is why, for example, I read magazines like CS Interiors. I always find inspiration as I leaf through the pages. 4. Excellence in photography. I don’t know why, but I really enjoy amazing photography of interesting subjects. I think National Geographic does an unbelievable job taking fascinating pictures of compelling subjects. If you get the chance, check out their series of “Greatest” books. They are wonderful. So those are some of the excellent things that inspire me. What about you? Be inspired! Michael
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Michael A. Menn Architect, Principal, Michael Menn, Ltd. AIA, CGR, CGP, CAPS, NCARB, NKBA 2017 President of the Home Builders Association of Greater Chicago 2016 National Remodeler of the Year
NEW FACES OF HBAGC: INAGURAL 2017
2016 KEY AWARDS HIGHLIGHTS AND AWARD WINNERS
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ON THE COVER: FRANK BINETTI A MAN OF MANY VALUES
IN EVERY ISSUE PEOPLE & PROJECTS - PAGE 11 MARKET NEWS - PAGE 44
BUSINESS NEWS - PAGE 45 UPCOMING EVENTS - 46
MEMBER MARKETPLACE - PAGE 47 www.HBAGC.com 5
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PEOPLE & PROJECTS
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EY AWARDS Visit HBAGC.com for a complete list of winners! A complete list of Key Award and Sammy Award winners and their awards is available at: http://HBAGC.com/2016-key-award-winners/
Frank Binetti: A Man of Many Values
Q: Please tell us why you became involved in the Home Builders Association of Greater Frank Binetti is President of the Home Mort- Chicago, how your involvement evolved over gage Division at Inland Bank and Member- time, and what you find most rewarding ship Chair of the Home Builders Association about your role in recruiting memberships. of Greater Chicago. He has been a member of the association for the past 29 years Originally, I saw the organization as a good and is now a highly regarded member of opportunity for networking and establishing the board. Born in a small town near Bari, business contacts to become more involved Italy he moved to Chicago, Illinois when he in the industry. I learned, though, that the was two years old where he later attended association does a lot of great things for Northern Illinois University and graduated people going into homes. It was this new with a Bachelors in marketing. Today, he has realization that fueled my desire to remain four children and lives in St. Charles, Illinois. an active member. I was able to learn about homelessness and the importance of homes In this interview, Frank Binetti discusses his for families. My involvement became more involvement in the Home Builders Associa- rewarding than I had expected and sharing tion of Greater Chicago as well as his person- the values I have learned with others has al life outside of work and the organization. become the satisfying aspect of my role in recruiting members. by Myhka McKinney
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Q: A membership report comparing last year and this year indicates a 33% growth in the number of members: Any comments regarding this trend? I believe that it is very important that homebuilders participate in the association. Homebuilders have been in a lot of turmoil over the past couple of years with the economy. It is very satisfying to see the industry getting back on their feet. There is strength in numbers; the industry and the association will only get stronger with the growth in membership. This change is very exciting and I look forward to witnessing what changes it brings about in the future. Q: As Membership Chair, could you share some of the priorities you are focused on this year? -CONT. PAGE 36
Chicago’s “Shoulders” in Good Hands with Skilled Carpenters From Rogers Park in the north to Hegewisch down south, from the bustling Loop to Lawndale out west, the Chicago Regional Council of Carpenters and its labor force are proud to have been a major player in building this the “City of the Big Shoulders.” Working with our signatory contractors to build safe, durable, efficient, practical structures according to the latest building codes is what we do. Our performance-based approach to construction and training methodology enables us to build smart and cut costs, not corners. Our members have access to incredible training and continuing education that keeps their skills sharp and their minds equally sharp to be able to successfully operate and manage the latest technology and materials on project sites. This means that when our signatory contractors and members arrive for work, they bring a level of self-confidence to the project and an added benefit to all involved. Chicago is us, and we are Chicago! For a list of signatory contractors contact the Chicago Regional Council of Carpenters at 312-787-3076. www.CarpentersUnion.org.
COVER STORY - CONTINUED This year, with the industry getting back on its feet, I would like to get the word out to past members of the association to come back. That being said, though, I also am hoping to recruit new members who are entering the industry and welcome the next generations of home builders into our organization. I really want to emphasize the benefits of membership to both old and new members because the Home Builders Association is truly rewarding.
trip to Australia with a potential stop to revisit Italy along the way. It’s all very exciting as I am able to do two things I love—spend time with family and travel. Another passion of mine when I’m not traveling is sports. I am a big Chicago sports fan, especially of the Cubs! I love going to watch baseball, hockey, and football games whenever I have a chance.
Q: Are there any final words that you would like to add? Q: Please tell us something about yourself and your life beyond your professional life at Inland Bank and the Home Builders Association of I would just like to again emphasize how important it is that homeGreater Chicago. builders and anyone associated with homebuilding becomes a member of the Home Builders Association. Not only is the organization imporI think the thing that gives me the most pleasure outside of my work tant from a networking perspective, but it also helps so many people is my family. I have four children aged 21, 24, 26, and 28. I have loved find homes and experience homeownership. In the industry, I believe watching them grow and evolve into adults, as most parents do. They that it is truly important to return back to important values such as are my pride and joy. I love to spend time with them and look forward family and to turn away from the new materialistic values emphasized to the vacations that we share. We have a home in Tempe, Arizona that in our present society. we go to frequently. Traveling is another pleasure in my life. I recently traveled back to my homeland in Italy where I was able to visit family and explore my heritage. Over the holidays, we are planning a family
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NEW FACES OF HBAGC Home Builders Association of greater Chicago has appointed Michael Menn president for 2017. Menn, president of Michael Menn, Ltd., has been involved with the association for over 26 years. The official ceremony took place at PIRCH Showroom in Oak Park, IL on January 4, 2016. In addition, the Regional Board of Directors for 2017 has been named as follows: Michael Menn, President John Wozniak, Vice President Frank Binetti , Associate Vice President Corey Stern, Secretary Jim Marzullo, Board Member Michael Frieberger, Board Member Jan Sevon, Board Member Scott Sevon, Board Member Mike Nagel, Board Member Eric Pickell, Board Member Scott Walbridge, Board Member Pat Coveny, Past President Paul Colgan, Government Affairs Ed Augustin, Board Member Paul Link, Board Member Tom Drake, Board Member Matt Jans, Board Member
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2017 SENIOR LEADERSHIP
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MICHAEL MENN 2017 PRESIDENT
MIKE NAGEL BOARD MEMBER
TOM DRAKE BOARD MEMBER
JOHN WOSNIAK VICE PRESIDENT
ERIC PICKELL BOARD MEMBER
MATT JANS BOARD MEMBER
FRANK BINETTI ASSOCIATE VICE PRESIDENT
SCOTT WALBRIDGE BOARD MEMBER
JOE SAFIN BOARD MEMBER
COREY STERN SECRETARY
PAT COVENY PAST PRESIDENT
JIM MARZULLO BOARD MEMBER
PAUL COLGAN GOVERNMENT AFFAIRS
MICHAEL FREIBURGER BOARD MEMBER
ED AUGUSTIN BOARD MEMBER
JANICE SEVON BOARD MEMBER
MARTY PARIS CITY CHAPTER PRESIDENT
SCOTT SEVON BOARD MEMBER
PAUL LINK BOARD MEMBER
RICH TONIONI BOARD MEMBER
JUDITH L. NELSON HISTORIAN /LIFE MEMBER
ROBERT COWHEY LIFE DIRECTOR
RALPH KRISTENSON LIFE DIRECTOR
RITA UNZNER EXECUTIVE OFFICER
WHY JOIN HBAGC? NETWORKING It’s not just who you know, it’s who others know. Build deep industry relationships with the most connected professionals. Your membership is 3-in1. Local, State and National.
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HAVE A VOICE Gain a say in what happens in government through the Association advocacy efforts, new codes and legislation. Access Industry "inside" information.
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Call 866.773.5598 visit hbagc.com STAY CONNECTED WITH THE MEMBERPLUS® APP www.HBAGC.com 41
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Illinois home sales, prices gain traction in November
llinois homes sales regained momentum in November with double-digit increases in annual home sales and continued strong gains in median prices, according to Illinois REALTORS®.
Statewide home sales (including single-family homes and condominiums) in November 2016 totaled 11,341 homes sold, up 14.8 percent from 9,881 in November 2015. The statewide median price in November was $178,000, up 7.9 percent from November 2015 when the median price was $165,000. The median is a typical market price where half the homes sold for more and half sold for less. “Buyers were significantly motivated in November, with the depressed sales numbers from October suddenly seeing a reversal,” said Illinois REALTORS® President Doug Carpenter, ABR, AHWD, GRI, SFR of Mokena, managing broker of Coldwell Banker Honig-Bell in Orland Hills. “Sellers were the big beneficiaries of this surge in market interest, as buyers determined now that the election is over and interest rates might be moving higher, it’s time to finally make a decision.” The time it took to sell a home in November averaged 62 days, down from 68 days a year ago. Available housing inventory totaled 57,310 homes for sale, a 14.7 percent decline from November 2015 when there were 67,187 homes on the market. The monthly average commitment rate for a 30-year, fixedrate mortgage was 3.77 percent in November 2016, an increase from 3.47 percent the previous month, according to the Federal Home Loan Mortgage Corp. In November 2015 it averaged 3.93 percent. In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in November 2016 totaled 8,093 homes sold, up 16.0 percent from November 2015 sales of 6,979 homes. The median price in November 2016 was $215,000 in the Chicago PMSA, an increase of 10.3 percent from $195,000 in November 2015. “With the election finally over, consumers appeared to have responded with a significant growth in sales (year-overyear),” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Supply continues to be a problem, but prices of both regular and foreclosed properties increased and the
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forecasts suggest that these trends will continue into the first quarter of 2017.” According to the data, fifty-seven (57) Illinois counties reported sales gains for November 2016 over previous-year numbers, including Lake County, up 25.6 percent with 730 units sold; Madison County, up 16.9 percent with 249 units sold; Cook County, up 13.1 percent with 4,422 units sold; and Peoria County, up 9.3 percent with 165 units sold. Fifty (50) counties showed year-over-year median price increases including Kankakee County, up 15.8 percent to $125,000; McHenry County, up 12.5 percent to $193,812; and McLean County, up 2.0 percent to $161,000. The city of Chicago saw a 13.2 percent year-over-year home sales increase in November 2016 with 1,881 sales, up from 1,661 in November 2015. The median price of a home in the city of Chicago in November 2016 was $260,000, up 11.3 percent compared to November 2015 when it was $233,500. “The sharp uptick in both single family and condo home sales reflects consumers’ desire to enter the homeownership marketplace as opportunities present themselves, with the anticipated rise in rates and declining inventory boosting activity,” said Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “Buyers who’ve been watching from the sidelines and may have been distracted for a multitude of reasons, including the Cubs World Series run and the election, are being spurred into action, and both buyers and sellers are reaping the rewards.” Sales and price information are generated by Multiple Listing Service closed sales reported by 28 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of Dec. 7, 2016 for the period Nov. 1 through Nov. 30, 2016. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will. Illinois REALTORS® is a voluntary trade association whose more than 44,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, Illinois REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation to safeguard and advance the interest of real property ownership.
Home Builder is not liable for Implied Warranty of Habitability to Subsequent Purchaser when Properly Waived By Corey B. Stern, Chitkowski Law Offices In May, 2016, the Illinois Supreme Court ruled that the Implied Warranty of Habitability did not apply to Subsequent Purchasers, when the Home Builder and Original Purchaser had explicitly waived this Implied Warranty and the Subsequent Purchaser bought the Property “As-Is”. In this recent case, the Subsequent Purchaser made a claim against the Home Builder for breach of the Implied Warranty of Habitability. By law, in the construction or significant additions/remodeling of every home, the Home Builder or Remodeler warrants that the house is livable and is free from latent defects. However, a Home Builder or Remodeler can have the Purchaser waive the Implied Warranty of Habitability if done properly, and thereby, limit the Contractor’s liability and monetary exposure.
should offer its own Limited Warranty in the place of the Implied Warranty of Habitability. The benefit of the Limited Warranty to the Purchaser is that coverage would be extended to work that is not typically covered by the Implied Warranty of Habitability. While the benefit of the Limited Warranty to the Home Builder is certainty that the Limited Warranty will expire after a fixed time, (for example, one year) and that any liability as to other construction issues will be controlled, and possibly, reduced. For further information on drafting and enforcing home building contracts, waiving the implied warranty of habitability, providing warranties, and prosecuting or defending any construction litigation issue, contact Corey B. Stern from Chitkowski Law Offices at 630-824-4809 or email@example.com.
The Implied Warranty of Habitability applies to developers, general contractors, subcontractors and materialmen. The Implied Warranty of Habitability provides that the home is free from latent defects, structurally sound and without substantial defects. A latent defect is one that could not be discovered from an inspection that exercised ordinary and reasonable care. A claim for Implied Warranty of Habitability must be brought by the homeowner within four (4) years after the homeowner discovers the latent defect or within ten (10) years from the date the work was performed. The Purchaser can make a claim for Implied Warranty of Habitability against a Home Builder if it proves that: 1) there is a latent defect in the house; 2) the latent defect interferes with the intended use of the house; and 3) the latent defect was noticeable within a reasonable time after the house was purchased. The Court held that the Waiver of the Implied Warranty of Habitability contract provision between the Home Builder and Original Purchaser was enforceable against the Subsequent Purchaser. For a Home Builder to have an enforceable Waiver of Implied Warranty of Habitability with the Purchaser, the Waiver must be: 1) more noticeable than other contract provisions; 2) the waiver must inform the Purchaser of the consequences of the waiver; and 3) the Purchaser must specifically sign off on the waiver contractual provision. Instead, the Home Builder should offer a 1 year warranty that defines the Parties obligations on remediation and notice. Based upon the Court’s holding, every Home Builder or Remodeler should have a Waiver of Implied Warranty of Habitability clause in its contract. Instead, every Home Builder www.HBAGC.com 45
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JANUARY MEETINGS AND EVENTS Regional Board Installation Wednesday Jan 4, 2017 After Hour - The Tile Shop Tuesday Jan 17, 2017 CAPS TRAINING Wednesday Jan 25, 2017 - Friday Jan 27, 2017 Certified Aging in Place (CAPS) Wednesday Jan 25, 2017 - Friday Jan 27, 2017
MEET THE COMMISSIONER Judy Frydland Wednesday Jan 25, 2017
FEBRUARY MEETINGS AND EVENTS
PowerHouse Smart 1st Annual Luxury Conference Wednesday Feb 8, 2017
As a volunteer-driven organization, our many committees and councils help guide the HBAGC’s events and activities throughout the year. Consider joining one — or more — if you want to build strong, long-lasting relationships and make a difference to your fellow HBAGC members, while sharpening your leadership skills. Committees and Councils Available: • • • • • •
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Programs and Education Membership Committee Remodelers Council PWB, Professional Women in Building Key Awards Committee Advocacy Committee
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The Greater Chicago Building News is the official publication of the Home Builders Association of Greater Chicago, published by HBAGC member...