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Building News WWW.HBAGC.COM | SUMMER 2016
THE STATE OF THE NATIONS HOUSING 2016 Chicago-Area Suburban Transit Oriented Developments Are Full-Steam Ahead in Latest Building Boom The New 4iE® Smart WiFi Thermostat: A Change in Heating Systems
A publication of the Home Builders Association of Greater Chicago
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Building News SUMMER 2016
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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 UNSPLASH - Fineas Anton TO ADVERTISE CONTACT: Judith L. Nelson - Marketing Director email@example.com 312-260-9792 ext3 Lucas Epstein - Advertising Director firstname.lastname@example.org 312-260-9792 ext4
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PRESIDENTS MESSAGE As this issue goes to print we are signing off on a release of DeKalb County as one of our assigned territories. The HBAGC Board vote was unanimous but there was much discussion that saw a big positive for Illinois and Greater Chicago. We get to market that a state that isnâ€™t doing very well in terms of single family new construction creates a brand new HBA with potentially 55 members. DeKalb Builders Association had no affiliation with NAHB but they saw the light when they had a political issue with nobody to argue their side. And then they saw the other benefits of being a member of a larger trade association with its marketing help, advocacy, relationship building and gaining inside knowledge of what is really going on. Next, Key Award submittals have a deadline of August 1. If you know of anyone that has a project they might want recognized please let the committee know. This includes homes, condos, apartments, interior design, remodeling and community efforts. Remember this is probably one of the least expensive ways to market your properties. And it shows that HBAGC has some great members doing great stuff. Finally we have just finished a very successful golf outing and look forward to summer events with other associations. Pat Coveny - HBAGC 2016 President
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THE STATE OF THE NATIONS HOUSING 2016
CHICAGO-AREA SUBURBAN TRANSIT ORIENTED DEVELOPMENTS ARE FULLSTEAM AHEAD IN LATEST BUILDING BOOM
HBAI NEWS SUCCESSFUL LOBBY DAY
THE NEW 4IE® SMART WIFI THERMOSTAT: A CHANGE IN HEATING SYSTEMS
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New BREAK-THROUGH!® Paint Formula from PPG PAINTS™ By Myhka McKinney
The paint color and quality in a space speaks volumes. So why choose a paint that will leave behind streaks or begin to crackle over time? PPG Paints’ new lowVOC BREAK-THROUGH!® paint formula provides the highest-quality paint by incorporating innovative technology into a new high-performance mixture. With superior color, drying time, and finishes, PPG Paints’ newest paint is perfect for any interior or exterior surface. The advanced features of the BREAKTHROUGH!® paint, however, make application easy for homeowners or professionals. About PPG The new low-VOC BREAK-THROUGH!® paint is a new product from PPG PAINTS™. Operating in more than 70 countries worldwide, PPG Industries prides itself in “bringing innovation to the surface.”® With high-quality, innovative and sustainable solutions, PPG strives to become the world’s leading coating company. Their products are unique in sustainability and color, setting them apart from other competing companies and products. PPG Architectural Coatings, a branch of PPG Industries, has already become a leader in the industry in residential and commercial coatings. With a wide variety of products from exterior paints to stains to caulks to repair products to adhesives to sealants, PPG offers high-end merchandise for any customer. The New Product PPG’s BREAK-THROUGH!® paint is a leading coating
8 SUMMER 2016
product. However, PPG is proud to release the new and improved formula with low-VOC product technology. More specifically, a <50 grams per liter volatile organic compound (VOC) formula. The BREAK-THROUGH!® paint is an excellent alternative to any interior or exterior acrylic paint. This innovative product has a smooth, brush streak-free finish that will not crackle or peel. In other words, the BREAKTHROUGH!® paint can be applied to a wide variety of both residential or commercial surfaces. These consist of: • Floors • Trim • Cabinets • Railings • Shelving • Equipment • Metal • Wood • Concrete • Fiber Glass • Laminate • Most Plastics
The new application improvements for the BREAKTHROUGH!® formula includes: • Slightly higher viscosity for easier handling; • Improved sag resistance, resulting in a more even finish; • Improved flow and leveling, providing an enamel-smooth finish with fewer brush marks; • Quick drying time of 17 to 20 minutes to touch, two hours for recoat, resulting in less downtime and quicker job completion; and • Slightly more “open time,” or time that paint is wet enough for a brush to move through it, giving pros a longer time to frame to fix brush marks or drips. The low-VOC BREAK-THROUGH!® paint is available in satin or gloss finishes.
Where to Purchase This new innovative product is available at PPG Paints stores as well as various dealer locations throughout North America, Latin America, Asia Pacific, Europe, the Middle East, and Africa where PPG Paints are sold. To find a dealer near you, visit the company’s Worldwide Operations page on their website to look up locations by country (http:// corporate.ppg.com/Our-Company/Worldwide-Operations. aspx
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CHICAGO-AREA SUBURBAN TRANSIT ORIENTED DEVELOPMENTS ARE FULL-STEAM AHEAD IN LATEST BUILDING BOOM By Mike DeRouin, President, FitzGerald Associates Architects If you’ve attended any recent Chicago-area real estate events focused on multifamily
ning groups like the Metropolitan Planning Council, suburban officials and existing
development, no doubt you’ve heard panelists say “follow the train lines.” Virtually
residents have warmed to the benefits that TODs bring to land-locked municipali-
every community in the Chicago area with commuter rail access now has some sort
ties. TODs act as catalysts for additional development in suburban central business
of transit oriented development (TOD), and if our drafting boards are any indication,
districts, bringing greater foot traffic for area merchants, increased ridership on
even more are in the pipeline. Based on the sheer number of projects, the latest round
suburban commuter trains and tax dollars to village coffers.
of TODs in Chicago’s suburbs appears to have surpassed levels seen prior to the 2008
Building form is also evolving – upward. Rather than three- and four-story buildings,
several municipalities, such as Villa Park, will allow for new structures five and seven
Mimicking how development spread along the railroads when the suburbs were first
stories tall. Meanwhile, suburbs like Evanston and Oak Park that are as much urban as
colonized and developed, today’s TODs are sprouting in undeveloped and underde-
suburban in character are seeing multifamily buildings in the 20-story range. Many
veloped sites in proximity to nearby rail stations. However, rather than transporting
of these municipalities adopt new “form-based” zoning codes in place of traditional
goods and materials, the rails now primarily carry suburban residents to workplaces
Euclidian zoning laws, allowing builders to forgo strict floor area ratios or minimum
lot size requirements in favor of attractive, compliant designs at an economically-
New suburban TODs have much in common with developments of the last few
decades, but they also reflect an evolution in the suburban way of life and a change in
Suburban TODs differ from their urban counterparts in other ways, too. Perhaps the
market demand. The current suburban building boom is driven in part by a growing
most pronounced difference is the larger commercial component of a suburban TOD,
share of millennials seeking a convenient live, work, play lifestyle and the same high-
largely attributable to the fact that suburban TODs are much more likely to occur in
quality housing and resort-style amenities they enjoyed as urban residents.
primarily commercial or mixed-use zones, rather than residential areas in the city.
Thanks, in large part, to the educational efforts of non-profit and governmental plan-
And while we see urban TODs reducing and even eliminating on-site parking, the
12 SUMMER 2016
typical suburban lifestyle doesn’t yet support an auto-less existence, even for TODs located in the center of town. Residential demand for parking is compounded by the suburban TOD’s commercial components that also bring greater parking needs. The additional off-street parking TODs provide also serves to free up the curbside parking favored by small merchants and service providers. By our count, Oak Park’s downtown district stands to gain an additional 1,400 parking spaces through the developments currently underway there, including Oak Park Station, a FitzGerald-designed TOD that will include 428 parking spaces for public, residential and retail uses. With their built-in residential foot traffic, suburban TODs are also prime venues for restaurant tenants – even more so than urban TODS where there are usually numerous dining options within walking distance of a development. For bigger-box retail spaces in suburban TODs, local and specialized grocers garner the most attention, which can be highly attractive to not only the building’s residents, but also a village’s downtown work force. In working with developers to determine what other major shifts lie ahead for suburban TOD, we certainly can’t ignore the trend of corporations like McDonald’s and Kraft-Heinz choosing to move their headquarters to the city. Far-sighted developers may find the next hot spot for suburban TODs to be those challenged corporate parks with Metra access. Where walkable transit doesn’t exist, savvy builders and owners, both commercial and residential, would be wise to consider offering rush hour shuttles to train stations to help solve users’ “last mile” woes. Developers, investors and residents new and old stand to benefit much in the near future as suburban TODs continue to grow in popularity. With the support of local officials and neighbors, suburban TODs can be a muchneeded economic boost and a positive game-changer for many downtowns. FitzGerald Associates Architects is an award-winning architecture and design firm specializing in new and rehabilitated residential, commercial and office space. One of the most active architecture firms in transit-oriented development, FitzGerald has designed many TODs in Chicago and the surrounding surburbs over the firm’s nearly 100 year history.
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WarmUp The New 4iE® Smart WiFi Thermostat: A Change in Heating Systems By Myhka McKinney
The New 4iE® Smart WiFi Thermostat: A Change in Heating Systems
system brought to you by Warmup, a member of the Home Builders Association of Greater Chicago. Warmup is the world’s best-selling underfloor heating brand sold in over sixty countries. The company is dedicated to producing advanced, high-quality heating systems that accommodate a wide variety of living spaces to their worldwide customers.
Trendy, modern, efficient, smart — words not normally associated with heating systems… until today. Warmup’s new technologically innovative heating system combines all these qualities into one thermostat. No two household thermostats are the same as they become completely personal to you through your preferences and routines of everyday life. With the self-learning SmartGeo software and unique The Product design features, the new 4iE® Smart WiFi Thermostat is a perfect fit The concept behind the 4iE® Smart WiFi Thermostat is a no-touch for any home. required heating system. The thermostat system will create a heating schedule based on your inputs. Adjustments and scheduling to The Company the heating system are also made through a new system known as The new 4iE® Smart WiFi Thermostat is a new innovative heating SmartGeo™ or an alternative system known as Natural Language 16 SUMMER 2016
Programming™. The thermostat also has unique design features Where to Purchase that can be personalized to fit a wide range of spaces and customer The 4iE® heating system is available from all Warmup resellers. To preferences. find the closest store near you, visit the Warmup website’s store locator (www.warmup.com/store-locator). The MyHeating smartphone What is SmartGeo? app is available for download for both iOS and Android, free of purSmartGeo uses the routines of your everyday life, through a self- chase. learning feature, to automatically adjust the heating of your space as necessary. This new technology is connected to a smartphone app, MyHeating, that uses your location to determine the room’s temperature based on your distance from your home. In other words, the closer you are to home, the warmer your home will become. Better still, this new heating system is efficient and reduces your heating by up to 25%! The 4iE® Smart WiFi Thermostat saves you money and effortlessly provides you with a warm welcome to any space installed with this technology. What is the Natural Language Programming? If the SmartGeo feature is not appealing, the 4iE® Smart WiFi Thermostat provides an alternate technology known as Natural Language Programming™. This system is simple to use and incorporates terms and phrases to set up a heating program. For instance, your answer to the question What time do you wake up? could be recorded to make the needed adjustments to your heating in the morning. Your inputs will then be recorded for programming and voila, another simple heating feature of the 4iE® Smart WiFi Thermostat! Unique Design Features The 4iE® Smart WiFi Thermostat is designed to fit a range of styles from modern to traditional. The thermostat has “high-gloss effect front faces and bevelled chrome edges to reflect wall colors.” The thermostat is available in Onyx Black and Bright Porcelain finishes. There are also various vinyl overlays that can be applied to the thermostat to add an extra personal touch to any room. The overlays are available in a series of bold colors, textured metal and wood, as well as customized photo options. In addition to functional, the thermostat is personal! Even the display of the thermostat can be individualized with a variety of themes and backgrounds to choose from. A local weather forecast feature is also built in!
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As the Housing Recovery Strengthens, Affordability and Other Challenges Remain The national housing market has now regained enough momentum to provide an engine of growth for the US economy, according to the latest The State of the Nation’s Housing report released today by the Joint Center for Housing Studies. Robust rental demand continues to drive the housing expansion, and sales, prices, and new construction of single-family homes are on the rise. Even more important, income growth has picked up, particularly among the huge millennial population that is poised to form millions of new households over the coming decade. At the same time, however, several obstacles continue to hamper the housing recovery—in particular, the lingering pressures on homeownership, the eroding affordability of rental housing, and the growing concentration of poverty. The national homeownership rate has been on an unprecedented 10-year downtrend, sliding to just 63.7 percent in 2015. As Chris Herbert, managing director of Harvard’s Joint Center for Housing Studies, notes, “Tight mortgage credit, the decade-long falloff in incomes that is only now ending, and a limited supply of homes for sale are all keeping households—especially first-time buyers—on the sidelines. And even though a rebound in home prices has helped to reduce the number of underwater owners, the large backlog of foreclosures is still a serious drag on homeownership.” As these lingering effects of the housing crash fade,
homeownership may regain some lost ground, but how soon and how much are open to question. Moreover, the report finds that income inequality increased over the past decade, with households earning under $25,000 accounting for nearly 45 percent of the net growth in US households in 2005–2015. As Herbert sums it up, “The question is not so much whether families will want to buy homes in the future, but whether they will be able to do so.” Mirroring the persistent weakness on the owner-occupied side is the equally long surge in rental housing demand, with increases across all age groups, income levels, and household types. With vacancy rates down sharply and rents climbing, multifamily construction is booming across the country. But with strong growth among high-income renters, so far most of this new housing is intended for the upper end of the market, with rents well out of reach of the typical renter making $35,000 a year. Because of the widening gap between market-rate rents and the amounts many households can afford at the 30-percentof-income standard, the number of cost-burdened renters hit 21.3 million in 2014. Even worse, 11.4 million of these households paid more than half their incomes for housing, a record high. The report finds that rent burdens are increasingly common among moderate-income households, especially in the nation’s 10 highest-cost housing markets, where three-quarters of renters earning $30,000–45,000 and half of those earning $45,000–75,000 paid at least 30 percent of their incomes for housing in 2014.
Cost burdens are nearly universal among the nation’s lowestincome households. Federal assistance reaches only a quarter of those who qualify, leaving nearly 14 million households to find housing in the private market where low-cost units are increasingly scarce. Low-income households with cost burdens face higher rates of housing instability, more often settle for poor-quality housing, and have to sacrifice other needs— including basic nutrition, health, and safety—to pay for their housing. These conditions have serious long-term consequences, particularly for chil-
dren’s future achievement. “And compounding these challenges,” added Daniel McCue, a senior research associate at the Joint Center, “residential segregation by income has increased. Between 2000 and 2014, the number of people living in neighborhoods of concentrated poverty more than doubled to 13.7 million.” The report notes that a lack of a strong federal response to the affordability crisis has left state and local governments struggling to expand rental assistance and promote construction of affordable housing in areas with access to better educational and employment opportunities through inclusionary zoning and other local resources. But as Herbert added, “These efforts are falling far short of need. Policymakers at all levels of government need to take stock of what can and should be done to expand access to goodquality, affordable housing that is so central to the current well-being and potential contribution of each and every individual.” -The State of the Nation’s Housing, released annually by the Joint Center for Housing Studies, provides a periodic assessment of the nation’s housing outlook and summarizes important trends in the economics and demographics of housing. The report continues to earn national recognition as an authoritative source of information regularly utilized by housing researchers, industry analysts, policymakers, LIFESTYLE and the business community. Principal funding for this report was provided by the Ford Foundation and the Policy Advisory Board of the Joint Center for Housing Studies. Additional support was provided by Federal Home Loan Banks; Housing Assistance Council; MBA’s Research Institute for Housing America; the National Association of Home Builders; the National Association of Housing and Redevelopment Officials (NAHRO); the National Association of REALTORS®; the National Council of State Housing Agencies; the National Housing Conference; the National Housing Endowment; the National Low Income Housing Coalition; and the National Multifamily Housing Council. Glencoe The Harvard Joint Center for Housing Studies Northbrook advances understanding of housing issues and informs policy. Lake Bluff Through its research, education, and public Geneva outreach programs, the center helps leaders in government, business, and the civic sectors make decisions that effectively address the needs of cities and communities. Through graduate and executive courses, as well as fellowships and internship opportunities, the Joint Center also trains and inspires the next generation of housing leaders. www.jchs.harvard.edu
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Successful Lobby Day Bill Ward, Executive Vice President, HBAI
The 2016 HBAI Lobby Day participants may be best sized up as a group that works hard and plays hard. The preparation and execution of seven of our local associations had our members and local executives meeting with their elected officials right up to the moment we started our evening reception. And our reception was grand, with the Senate Republican Leader, Christine Radogno dropping by, as well as Hugo Chaviano, the Director of the Illinois Department of Labor. In all, 45 Representatives and Senators stopped by the HBAI Lobby Day Reception to meet builders and associates from their region of the state. Thank You East Central, Greater Southwest, Greater Chicago, Springfield Area, Southwest Suburban, Northern, and Peoria HBAs for covering the ground you did on Lobby Day. You made our day in Springfield work for all of our members. Here’s what we have accomplished: Interior Design Practice Act – the sponsor of the bill agreed with our members that the bill does more than the proponents maintain it does, and vowed to hold the bill from consideration, as written. SB463 would move interior design from a Title Act to a Practice Act, meaning there would be a day when our builders and remodelers would be need sign-off by an interior designer prior to a closing on new construction or finishing a remodeling job. Reversal of Authority for Public Construction Bonds – the sponsor of this bill agreed with HBAI that proponents of the bill need to study this matter more before moving it forward. SB3053 would have taken the authority to choose bonding tools away from developers and would have given it to the counties and municipalities. The option has been with the developer for 20 years. Mandatory Paid Sick Leave – two bills that would have required the smallest of employers to provide paid sick leave have been halted in the House & Senate
22 SUMMER 2016
(HB3297 & SB2147). Progressive Income Tax – attempts to amend the constitution and create the “millionaires brackets” for the taxation of income stalled in the House. HBAI opposes this tax in its proposed form. Sales Tax on Services – the expansion of state sales tax onto services, not just products, is not moving at this time. HBAI is opposed to its application onto home construction and remodeling. Consolidation of Local Government Functions – legislation to downsize some local government functions is on the move and is supported by HBAI. HB4501 passed out of Senate Local Government Committee and now awaits final passage on the Senate floor. And a big Home Builder Thank You goes to House Rep. David Harris, a Republican from Arlington Heights. The Minority Spokesman on the House Revenue Committee, Rep. Harris gave us up-to-the-minute information on how the Illinois General Assembly is attempting to solve its budgetary and pension fund obligations. The General Assembly is set to adjourn in less than three weeks. Hopefully, all of our good work will remain in effect through the May 31 adjournment date.
2016 SENIOR LEADERSHIP
PAT COVENY PRESIDENT
JUDITH L. NELSON BOARD MEMBER
FRANK BINETTI BOARD MEMBER
MICHAEL MENN VICE PRESIDENT
DAVID BRADY BOARD MEMBER
BRAD SCHREIBER BOARD MEMBER
JOHN WOSNIAK 1ST VICE PRESIDENT
JOHN KERN BOARD MEMBER
SCOTT WALBRIDGE BOARD MEMBER
SCOTT SEVON BOARD MEMBER
COREY STERN SECRETARY
REGIS VERLIEDFE TREASURER
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.
JANICE SEVON BOARD MEMBER
Committees and Councils Available: MARTY PARIS CITY CHAPTER PRESIDENT
24 SUMMER 2016
• Programs and Education - includes Golf and After Hours Events • Membership Committee - Frank Binetti, Chair • Remodelers Council - Scott Walbridge, Chair • PWB, Professional Women in Building - Janice Sevon, Chair • Key Awards Committee - John Kern, Chair • Advocacy Committee - Paul Colgan, Chair
MIKE NAGEL BOARD MEMBER
TOM DRAKE BOARD MEMBER
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.
ASSOCIATION OF GREATER CHICAGO
VISIBILITY Stand out and get noticed in your community. Build media recognition for you and your customers. Gain additional exposure by advertising in our member magazine and HBAGC.com.
Gain a competitive edge over non-members with exclusive training opportunities on a variety of industry topics.
Raise your reputation through membership. Polish your leadership skills.
HAVE A VOICE Gain a say in what happens in government through the Association advocacy efforts, new codes and legislation. Access Industry "inside" information.
“The more you put into it, the more you’ll get out of it.”
“THE MORE YOU PUT INTO IT, THE MORE YOU’LL GET OUT OF IT!”
Call 866.773.5598 visit hbagc.com STAY CONNECTED WITH THE MEMBERPLUS® APP www.HBAGC.com 25
EVENT SPONSORSHIPS MAKE IT HAPPEN Every HBAGC event is made possible by sponsorships. Becoming an event sponsor enables HBAGC to keep bringing you networking, educational and industry related events. Partnering with the HBAGC is one of the most effective marketing strategies your company can do. Our events provide the exposure and networking opportunities that help strengthen your relationships within the industry.
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SPONSOR AN EVENT TODAY! PLATINUM $1750 • NON-MEMBER PRICE $2250 Includes: · Exclusive industry sponsorship – no competitive companies · Representative may address the audience. Script must be approved and less than 90 seconds. · One ticket to event · Logo on e-blasts · Logo on screens during event (if applicable) · Logo on event signage · Logo on food tables · Tabletop for literature or place on chairs GOLD $500 member price • non-member price $600 Includes: · One ticket to the event · Logo on screens during event (if applicable) · Logo on event signage · Logo on food tables · Tabletop for literature or place on chairs SILVER $250 member price • non-member price $300 Includes: · One ticket to event · Tabletop for literature or place on chairs Questions? Email firstname.lastname@example.org or call 866.773.5598
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Prepared by: Southfield, MI • 248.354.9700
98259_CHRY_SB_NAHB_ToolKit_HalfPage.indd Office: 224/326-‐2698
1:08 PM Saved at: 4-27-2016 From: kcarter-mpt-11871 Email: firstname.lastname@example.org Job info Client Job # Prefix Trim Bleed Live Line Screen Product Code Unit Caption
CHRYSLER SMALL BUSINESS 161049700035 98259 8.5” x 5.125” 8.75” x 5.25” 8” x 4.875” 300 dpi 000 - CHRYSLER SMALL BUSINESS Magazine Great Relationships Come With
Approvals Print Producer Account Mgr Art Director Copywriter Traffic Art Producer Scale Proof #
Evans, Joe Kirsten, Marc Duane, Lauren Karagosian, Anthony Stoewsand, Jenna Frankel, Jillian Faith None 3
Krystal Carter / Jeffrey Mansk
Fonts Fonts: Minion Pro (Regular), Knockout (HTF28 JuniorFeatherwt, HTF30 JuniorWelterwt, HTF51 Middleweight, HTF29 JuniorLiteweight), Veneer (Regular) Link Name: 98259_CHR_14_581_UU_4CSWOP_HalfPg.tif (CMYK; 300 ppi; 100%), CHR_16_138_CP_RAM_ CC.tif (CMYK; 1177 ppi; 25.48%), CHRY_12_BL_
OTJ_4C.eps (15.52%), CHRY_13_BizLink_4C. eps (12.49%), CHRY_14_CDFJR_3D_ Horz_4C_K.eps (42.19%), CHRY_15_NAHB_K. eps (19.92%), SignOff_out_K.eps (90.3%) Used Swatches: Cyan, Magenta,
Job Site Service / Expert Product Recommendations / Post-Closing Support / Industry-Leading Color Program The World Leader in Paint & Coatings / Available at More Than 2,400 Locations Nationwide Visit ppgpaints.com to make a positive change for your business.
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Published on Jul 20, 2016
The Greater Chicago Building News is the official publication of the Home Builders Association of Greater Chicago published by Brandit360, a...