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NORTHERN KENTUCKY

June 2013

The Official Publication of the Home Builders Association of Northern Kentucky

bring it all inTO VieW Using Technology See how the hBA hAS puShed forwArd to Bring ConSumerS And memBerS InformAtion to the mArketplACe fASter, more thoroughly And more eASily on pAge 4

www.HomeBuildersNKY.com www.facebook.com/HBANKY

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WHAT’S THIS? Scan the QR code with your mobile device for additional content and relative information. Don’t have a QR code scanner? Search your Blackberry, iPhone, or Android app store for a free QR code scanner.


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The mission of the Home Builders Association of Northern Kentucky is to promote and enhance the integrity and visibility of the construction industry and the members of the organization through advocacy, communication, education

June 2013

Inside this Edition... 4 ................Letter from Brian Miller, Executive Vice President

and political action.

5 ..................................................................... Membership Update

The Northern Kentucky Home Product and Service Buyers’

5.................................................................Ambassador of the Year

Guide is a special edition of the Northern KY Builder. Northern Kentucky Builder™ is an official publication of the Home Builders Association of Northern Kentucky, 2751 Circleport Drive, Erlanger, Kentucky 41018. It is published in the interest of the Northern Kentucky building industry and read by home builders, remodelers, general contractors, developers, engineers, bankers, Realtors,® architects, material dealers, subcontractors and manufacturers. All rights reserved. Copying or reproduction without the expressed permission of the Home Builders Association of Northern

10......................................Donald Martin Wiedeman Memorial 13 .................................................................... HOMEFEST 2013 14 ............................................ 7th Annual Builder Realror Bash 17 ......Letter from the Director of Professional Development 18................................Multifamily Housing Growth Continues

Kentucky is strictly prohibited.

19........................................................... Millennium Club Update

phone 859.331.9500 or fax 859.578.3393

20............................................ Housing and Economic Forecast

email homebuilders@hbanky.com 2013 Board of Directors Adam Chaney, President William Butt, Immediate Past President James Kegley, Vice President Jason Yeager, Secretary/Treasurer Desiree Webster, Associate President Walt Dunlevy, Associate Vice President Paul Metzger, Land Development Council President Pat Parshall, Sales & Marketing Council President Phil Drees, Builder Director Tom Spille, Builder Director Diana DeVore, Associate Director Art Fischesser, Associate Director Anita Kosco, Associate Director Patrick Townsend, Associate Director HBA Staff Brian A. Miller, Executive Vice President Janis Beard, Membership Director Melanie Meyer, Director of Shows & Events, Sales & Marketing Thomas Napier, Director of Professional Development Marsha Roudabush, Director of Finance Holly Woodring, Administrative Coordinator The Home Builders Association of Northern Kentucky is open to the world, visit our web site for up-to-date information on HBA services and programs, including extensive public referral directory to Registered Builders, Registered Remodelers and Associate Members.

www.HomeBuildersNKY.com

20...............Janis Beard Celebrates 25 Years Serving Members 23 ............. Protecting Personal Assets from Corporate Debts 26 ......................................................... Member Mix and Mingle 26 ................................... Northern Kentucky Building Permits 27 .................................................................... Calendar of Events

Take advantage of your 22% discount today. Registering to become an NPP member is free and easy.

Here

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Improving Technology at the HBA to Meet Demand

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echnology is changing rapidly and so to are the many ways that it benefits the members of the HBA and the consumers that the HBA works to connect you to. For three years now the HBA Board of Directors has been looking into technology during its annual planning session. The leaders of the HBA have examined how technology changes the way we do business and how it may affect the way members and consumers interact with the HBA and its products and services. Also, the leaders have been bombarded with messages regarding how technology changes the culture and how business leaders collaborate and connect.

The HBA is further ahead than many other HBA’s with regard to technology today. We have a single point database that runs our membership tracking, invoicing, event and show management and outbound electronic messaging. Recently the HBA has been working on improving the use of our existing technology. We have been enhancing the event descriptions, emails and consumer show pages of our website at www. homebuildersnky.com. Hopefully you have taken the time to look at the website and have seen the improved show pages where homes and projects are listed, photos curated, company logos displayed and links going to our participant’s web pages. What’s more we have just begun using a mobile application available on apple devices that displays everything you see on the web page but does more. Now, with a tap, visitors can access maps of projects, browse photo galleries, and tap to call the business about the project or for any other reason. We have begun to deliver DVD’s of our AGC/SIF Workers Compensation Safety classes for the ease of our members. All you have to do is contact us and we send a copy of the DVD in the mail. Watch the video, take the test, mail it in and you are done. With improved service of our systems we urge members to utilize the power at their hands. Members are now able to sign up for events online, enter homes and projects into our consumer shows, purchase sponsorships of events, and manage their data we keep on file. Once you log into the system you will be able to access all of your data at your fingertips to manage as your see fit. We ask that you visit our website, sign in and let your fingers plan your future. So what does the future hold? The HBA leaders are working on a three year strategic plan which includes in it components of communication, education, advocacy and political action (Look for upcoming issues of the Northern Kentucky Builder for a full rollout of the plan). Every task force has technology in mind while they are creating their plans. Expect to see an improved HBA website, mobile applications, online education and much more. While our leaders are creating their three year plan please call the HBA about your technology needs. We would love to hear from you in order to meet your needs as soon as possible. And if you have any other question, need your username and password to access our system, or simply have a comment on how we can better help you and your business please call the HBA at 859-331-9500 or by email at info@hbanky. com. Your comments and questions are delivered directly to the leadership of the HBA and are heard, answered and acted upon. The HBA is truly a grassroots organization doing its best to help you. We are all in this thing together.

Sincerely,

Brian A. Miller Executive Vice President Home Builders Association of Northern Kentucky


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Do Business with a Member.

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New Member Orientation is not only for the new members who are recruited throughout the year, but also for members who have never attended a New Member Orientation. You would be amazed at the services and benefits the Home Builders Association provides their members that you may not be aware of because you have not attended a New Member Orientation. Plan to join us for our next New Member Orientation at the Home Builders Office.

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New Members Welcome! We are truly happy to have your support and membership!

JANE SHERBURNE Company: Hamilton Parker Company Position: Account Manager Community I live in: Dayton, Ohio My favorite thing to do when I’m not working is: Gardening and home improvement My reason for belonging to the HBA of Northern Kentucky: Networking to promote our company being new in the area Something unique about my company is: 75+ year old company. 3rd generation owned from Columbus, Ohio

Huntington Bank Mortgage Group Michelle Caldwell 6666 Industrial Road Florence, Kentucky 41042 859-342-2518 Business: Bank/Mortgage Lending Nelson Comfort Brad McAtee 5909 Stewart Road Cincinnati, Ohio 45227 513-561-7517 Business: HVAC/Geothermal Sponsor: Jim Cutter

MISSING IN ACTION

Ambassador of the Year

If you do business with any of the missing members, please encourage them to get back in the action at the HBA!

Diana DeVore, Guardian Savings Bank, presents the 2012 Ambassador of the Year Award to Roger Toennis, Cornerstone Window and Door. Congratulations Roger! Roger has been a faithful ambassador for the Home Builders Association for many years.

Ammon Outdoor Design Bloxton Construction, LLC Cincinnati Energy Solutions, LLC Craddock Construction Federal Supply GreenWay Painting, Inc. Greater Lexington Insurance M & M Kroth Construction Laycock Roofing & Concrete G.M. Mettens, Inc. Riegler Engineering

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Contact Thomas Napier, PhD, Director of Professional Development at the HBA (859) 331-9500 x19

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Senior Loan Officer Vice President/Sales Marketing

859-393-4904

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Donald Martin Wiedeman, Executive Vice President of the Home Builders Association of Northern Kentucky for 37 Years Passes It is with great pain in our hearts that we inform you that our first Executive Vice President, Don Wiedeman has passed from this earth. Don was Past President of the Executive Officers Council of the National Association of Home Builders, a member of the American Society of Association Executives, Past President of Cincinnati Society Association Executives, helped to organize the Herbst Tour in Camp Springs, a member of the Tri State Photographic Society, Army Veteran of Korean Conflict and was a member of Camp Springs Volunteer Fire Department. Don was preceded in death by his wife, Louise S. Wiedeman. He is survived by a daughter, Dena Crain; two sisters, Carole Cleves and Marilyn “Binky” Sullivan; two brothers, Louis “Pete” Wiedeman and Robert Wiedeman; dear friends, Marty and Nancy McClanahan; also survived by many nieces and nephews. The staff of the Home Builders Association reached out to many of our Past Presidents and long time staff in order to provide this testimony of Don and all that he has done for our association and for Northern Kentucky. If you have memories of your time with Don we encourage you send them to Brian Miller at bmiller@hbanky.com so that we may share them with our HBA family. Kevin Krumpelman President 2002 Don was the HBA. He was involved in every aspect and could answer any question you had. Janis Beard HBA Staff Don was a true gentleman. He genuinely cared for the HBA, its members and his staff. When Don spoke, people listened. He was a fine example and mentor to many. His favorite saying was “Keep you sunny side up!” He gave much encouragement to many. Jerry Moser Associates Council President 1968 & 1976 I have known Don since 1949 when we were both in the Catholic Theatre Guild of Northern Kentucky along with his brothers, Pete and Dick. We have been great friends from that time on whether building scenery for the shows or being on stage performing. Don was always one you could rely on to get a job done well, a menial one or a major project. Don had a side many of you may never have seen, that of a signer and dancer. Those were our youthful “oat sowing, beer drinking” years. Some things just don’t change. Then came the years of work and family and we still had the opportunity to work closely together through HBA. Through these 64 years of our friendship and our work together, I have never heard anyone say a cross word against him. He was fair minded, a great organizer and conscientious. He was a man of integrity in every endeavor that he would encounter, and a loyal friend to boot. In these past several years since his retirement he organized monthly luncheons with us “HBA old timers” which he lovingly referred to as the “Old Farts Group”. It won’t be the same without him. The past year was very hard for him but he stayed just as strong throughout it as he did for his entire lifetime. We visited when he was in rehab and he held onto 10

Northern Kentucky BUILDER

optimism. We have lost a great person and a huge friend of the Home Building Industry. He will be sorely missed by all. May he rest in peace. Jack Miller President 1986 I first met Don in 1976 when I joined the Northern Kentucky Home Builders Association. In those days the HBA consisted of two staff members, Don and Nancy McClanahan. They worked out of a converted little two story house in Covington. From there our association was built. Don was the perfect Executive Vice President. He formed the basis of everything our association does to this day. He started the apprenticeship program, established working relationships with local and state governmental agencies and the people who ran them, established the structure for the former Women’s Council and the Sales and Marketing Council. He was the person who made our association grow and thrive. Under his direction our association grew to a position of influence in the state and the region. He put the welfare of our association and its members above all else. During bad economic times and good economic times, Don was the glue that held our association together. Don had a vision of what our association should be and made it happen. He dedicated his life to our association. He was a kind and gentle man. He always had a genuinely warm smile on his face every time I saw him. In all the years I knew him I never heard him raise his voice in anger or say anything unkind about anyone. He nurtured young members as they worked their way up the ladder of leadership in the association. He would meet with officials and calmly explain the industry position on an issue and resolve any differences. Always the optimist, he would set aside disappointments and work to turn them around. In his retirement years he put his organizational skills to work one last time and formed a monthly lunch for some of the older

members he worked with over the years. It was a time for telling old war stories about battles won and lost. It was a time for camaraderie. I will miss him so very much. Jean Miller Women’s Council President 1989 With Don’s passing, I’ve lost a long-time friend and mentor. My earliest memories of Don began in the old HBANKY office which was located in an old “shotgun” style house on 5th Street in Covington. It was 1977 and I had agreed to assist with the “HBA Women’s Auxiliary” Newsletter, Bits and Pieces. He was always cordial and helpful, especially when I had a disagreement with the mimeograph machine! Don was always welcoming to new HBA members and encouraged their involvement in all aspects of service to our building industry. That, too, applied to members of the HBANKY Women’s Auxiliary which transformed into the Women’s Council in the late 90’s. We had a very large membership for many years – as many as 125+ in the 80’s and 90’s. I know that we most likely tormented him with some of our fund-raising projects, but he was always willing and able to provide as much support as necessary. Over the years I became more and more involved with the National Association. Don’s door was always open to my quest for information. Having served at the National level himself, he provided me with much appreciated guidance on the governance and function of NAHB. As I rose the ladder of leadership in the National Women’s Council, Don’s advice and encouragement was invaluable. He was a great mentor. After Don’s retirement from the HBANKY, we remained friends and kept in touch fairly regularly. He had a bit of a rough journey the past couple of years, but remained positive. I will miss his broad smile and that deep voice saying, “Keep your sunny side up!”


Brian Jones Associates Council President 2001 I learned from Don how to be a leader in a volunteer organization… with patience. JoEllen Thompson Associates Council President 2000 “The thing about Don was that he made you feel like family. It was amazing how many people he knew and how he remembered everyone’s name.” “I especially loved his stories about the HBA long ago. He was full of stories. You could just hear the passion for the Association and it’s members”. Frank Hicks Associates Council President 1979 Don was always efficient, available and responsive. Amy Gardner Associate Council President 2009 Don was someone you could always turn to for guidance, inspiration and of course a hug. He was a mentor to me as I’m sure many others in this industry. His friendship and dedication to the HBA will be missed. Rich Maile President 2003 As a life-long Northern Kentuckian and third generation builder, I feel lucky to have had the opportunity to meet so many wonderful people who add their mark on this wonderful community we call our home. Among that enormous group of people, Don Wiedeman is someone who stands distinctly at the top of the list of very special people in my life. The foundation of service and community that Don helped build, well before I began my career, is truly hard to grasp. Much of what makes this community great, finds its roots in Don’s life work. His contribution to the growth and progress of Northern Kentucky cannot be over stated. But what I find more impressive than WHAT Don accomplished is HOW he accomplished so much! I mean to say his demeanor, his integrity, his professionalism, his respectful toughness, his vision, work ethic, and his sincere desire to make the world around him better. Don welcomed me to the building and development community with open arms and encouragement. He was generous with his wisdom and advice; patient and always open to new ideas, even if it came from a kid who knew less than pen on his desk. I am thankful to have known Don Wiedeman. I am humbled by his many contributions to me and all of us, and I am grateful that he shared a small part of his life with me. Rudy Kreutzjans President 1987 Don was a great guy and a friend to all the members.

He was the HBA during his tenure and helped strengthen the organization with each passing year. He will not be forgotten. Henry Fischer President 1988 Elaine and I share in your loss of our good friend, Don. I have many great memories of my relationship with Don, beginning when I first had contact with him over 40 years ago. His leadership and fellowship at the Northern Kentucky HBA was inspiring and will not be replicated. It is hard for me to think about the HBA without thinking about Don. He will be missed and is in our prayers. John Yeager President 1992 Don will always be remembered as The Dean of Northern Kentucky Home Builders. He was there in the beginning and brought that heritage and wisdom to bear on each new generation. He treated all of us members with respect, whether they build one home or many. He had a wonderful sense of humor, which included every year playing Santa Claus on Christmas Eve in his neighborhood. I can still hear him laughing. Mike Enzweiler Former HBA Staff In good business practices we are cautioned that your boss should not and cannot be your friend, we must keep our friendship at a safe distance. Through my 25+ years of HBA employment, most of which were under the direct supervision of Don, I immediately spotted the depth of his integrity. Everything about him was honest and forthright. Paramount at all times was the well-being of the HBA membership. For Don, his jobrelated responsibilities extended far beyond his daily work hours. During my 32+ years of knowing Don, I constantly told others that he “ate, slept, breathed and lived for the Home Builders Association of Northern Kentucky.” The number of achievements during his tenure as Executive Vice-President were immense but he always reminded staff that it is the members’ association and every task that we perform needs to be for their betterment as business people but also for them as individuals. It was after Don’s retirement that our friendship grew even more. We were no longer restrained by our professional business relationship as boss/employee. He shared many stories about the ups and downs of an association so tightly tied with the economy and scores of adventures/ misadventures that we now cherish. There were good times and lean times but his true self always shined through. He was a leader who did not need to demand. Don and I worked closely together on projects in our shared community of Camp Springs. Many times I kidded with him about being a city boy

who moved to the country to become a city farmer. Yes, he had cows (many of which became stuck in the mud of his so-called pond and needed to be hoisted out with a lift.) The annual Camp Springs Herbst (Autumn) Tour was his baby. A free selfguided driving tour of our historic community that we operated together until the day before he died when I met with two community members who agreed to take over for Don in his duties. Often Don mentioned that we need to find additional people to help with our duties. He would state that “I’m not going to live forever”! , and I would always give him the same reply, “Don, you are too stubborn to die”. Not to become overly sentimental but it seemed to me that shortly after (the morning after) I was able to pull on board two quality successors to continue Don’s work, that he was able to relax and let go. The Camp Springs Fire Department and in particular the Annual Turkey Shoot served him proud. Don and another community member organized the first shoot (the 50th annual celebrated in November 2012 with Don helping work it). He said the idea was formulated at a local Camp Springs tavern where he was known to “tip a few”. For many years he dressed as Santa for children in the community and visited their homes. Those children are now in their forties and fifties but still have fond memories of Christmas past. Don you will be missed by the many HBA members past and present, by your community and your parish of St. Joseph in Camp Springs and I will miss you as a former boss but so much more as a true and steadfast friend. I am ever blessed for having known you! Paul Bogenschutz President 2009 Don Weidman’s passing recently was a loss to the entire housing community. When Don took over as the executive director of the Home Builders of NKY, he was instrumental in strengthening the building codes and building practices of our community for the betterment of all homeowners who built in Northern Ky. I think his best attribute was that he was able to get all sides to work together so that it was a win-win for everyone. He had a way about him that made you want to volunteer and give back to your profession and he always showed you appreciation for the time spent on an association event or committee. Don, we’ll all miss you around the Association. Art Fischesser Associates Council President 1987 “Remember, do business with a member, it’s good business.” Don always had a calming appearance. He never seemed rushed or anxious.

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August 10th-August 25th in The Equestrian at the prestigious Triple Crown Country Club View new Homes from Adam Miller Homes, Fischer Homes, Drees Homes, and Krumpleman Builders! Come out and see Northern Kentucky’s new home Showcase to view beautiful professionally-built and fully furnished homes will be on display August 10thAugust 25th. HOMEFEST is a great event to get interior design ideas, see the latest in home trends, talk to qualified professional home service and product providers or talk to the builders of these fine homes to help you with your home building dreams. Home investment values for HOMEFEST range from $500,000 and up. Triple Crown is located in the Richwood Kentucky area. 1/4 Mile west of I-75, just off of the Richwood exit (State Route 338). Directions from Cincinnati - I-75 South to the Richwood Exit (#175) approximately 18 miles south of Cincinnati. Turn RIGHT off of the exit ramp, and proceed through one traffic light. Approximately 1/2 mile from the ramp, you will find the entrance to Triple Crown.

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7th ANNUAL BUILDER REA “Knock It Out of the Park” presented by

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he 7th Annual Builder Realtor Bash really did “Knock It Out of the Park” this year! A record number of Realtors enjoyed ball park food and beverage while connecting with Northern Kentucky builders and developers. Congratulations to “Fischer Homes” who won the best decorated booth! A “Special Thank You” to the Northern Kentucky Association of REALTORS™ who allowed us to use their facility. We also want to thank Mike Eubanks, American Mortgage, who made arrangements for the appearance of “Belle” from Florence Freedom. Belle was a delight and all in attendance certainly enjoyed her.

Our Gold Sponsors

A Special “Thank You” to our Event Sponsors! You make this event possible! 14

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ALTOR BASH

Our Silver Sponsors

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The projects you’re completing now are this years entries... Produce salesofleads Get•Ready for the Tour Remodeled Homes! It is•that Enhance time of yearyour to start thinking about which project you image and visibility will•showcase in thesales Tour of Generate atRemodeled the show Homes. With over 1,000 people attending the event it is your company’s biggest • Reach potential clients opportunity to market your trade in the most affordable • Establish a presence in the marketplace manner. The 2013 Tour of Remodeled Homes will run • Personally meet your customers October 5-6 and will last from Noon until 5pm. •

Prospect for new customers

New Web Upgrades and Mobile App to Feature Homes! This year your project will be featured on our newly upgraded website. Home description, your company logo, and your contact information are but a small part of the website experience. We will add as many photos of the project as you can send us. Visitors to the site will be able to plot their visit to and from the various projects they are planning to see. On the iPhone mobile app users can browse the images you send us, tap for maps and driving directions and tap to call you, visit your website or shoot you an email.

2013

• Introduce new products and services Marketing at New Heights This the HBA isyour launching new advertising campaigns for • year Showcase product in ways not its consumer eventusing like theother Tour ofmarketing Remodeled channels Homes. We are possible already experiencing greater consumer response at our shows • Educate your target audience like Cavalcade of Homes in May.new We will invest in $20,000 • theGet exposure if you’re to the industry worth of media and combine that effort with an expanded • Highlight a special or unique skill or project public relations initiative that will result in greater exposure • Get great radio and television exposure for the Tour of Remodeled Homes. The show guide will be distributed through Cincy Magazine. Sponsorships Sponsorships are available for the event. The level of sponsorship will determine the amount of exposure you receive during the promotion of the event. Cavalcade of Homes sponsors are already telling us that this approach is resulting in far greater traffic and far better leads. Choose from Presenting, Official or project sponsorship.

The Home Builders Associations of Northern Kentucky and Greater Cincinnati are Toincheck out the iPhone mobile 2013 partnering to produce this scattered site show featuring remodeled homes the Tristate.

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app scan this QR code. Call Melanie Meyer at 859-331-9500 or by email at melaniem@hbanky. com for more info on marketing and sponsorship opportunities.

MAKE PLANS NOW!

TOUR IS OCTOBER 5TH ANd 6TH Call 859.331.9500 or visit www.HomeBuildersNKY.com for details


From 2011 the Director Autumn of Professional Development Continuing Education Schedule HBA Northern Kentucky

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began my career as Director of the Enzweiler Apprentice Training and Trade School and HBA Northern Kentucky just over two years ago. I walked in to a school full of dedicated teachers and students, all wanting to make their lives better through gaining licensure in the trades. Students were eager to help me acclimate and teachers embraced new ideas and teaching practices immediately. Although the first few months were rough, we came through it all a lot stronger and equipped to look at the figure of what this Training school * 11 could am - offer 1 pm Northern Kentucky.

Sept 23rd

Work Zone Safety

Sept 27th

A Discussion of Legal Issues for Builders and Remodelers 10 am - 12 pm

Sept 29th

October October 5th

By the end of my first full year here at Enzweiler, the ranks of students had swollen by more than 50% and 12 classrooms “Moisture and Air Barrier Solutions” by Enviro Dri pm - were 2 pmbuzzing with activity. HBA members embraced what the school could offer and provided input on what needed to be taught, supplied expertise on their own time and most importantly gave students a chance by hiring them for Apprenticeships with their companies. With all of this positive change we were awarded with the Nationalyour Association of Home Award Best Workforce Tim Shepelak Presents “Improving Business andBuilders Life” AEA 11 am - 1for pm Development Plan.

October 12th Art Reed presents “Selling Homes in the Latino Community” 9 am - 11 am

I was amazed! That award was such a testament to the faith and hard work of everyone involved with the October 13th Insulated Concrete Forms for Green Builders and Remodelers 10 am - 12 pm School and the commitment of the HBA to the betterment of Northern Kentucky.

October 14th Concrete and Masonry Construction Safety* 3 pm - 5 pm By the beginning of this academic year our student ranks and swollen to sizes that were only constrained by fire code! More

October 18th Electrical 9 am - and 11 am than a hundred new studentsSafety* joined the school the response from HBA members met that growth. 95% of the students at Enzweiler School currently work in their field and most were hired by HBA members to meet their growing need for October 20th Effective Business Writing 1 pm - 3 pm

skilled labor in their fields. Many HBA companies began hiring exclusively from Enzeweiler and the students have met the expectations for them bythe their new employers are fast becoming new skilled10 workforce of Northern October 25th set“Closing Deal”, Sellingand Yourself and yourtheBusiness am - 12 pm Kentucky for greater Cincinnati.

October 26-27 OSHA Workplace Safety 12 pm - 5 pm on both days

With the springWork graduating classSafety this year, we were once October 31st Zone Training* 11again am -honored 1 pmwith a NAHB award for our Education programming! We were awarded the 2012 Best Overall Education Program award!

It is with great humility and gratitude that we at the Enzweiler School would like to thank Home Builders Members, Staff and

* Indicates Safety Classes that fulfill AGC requirements for 2011 and 2 hours of Safety C.E. required for all Supporters for all of their contributions and support. It’s been an amazing few years! I am excited for what the future holds for Registered Builders and and Registered Remodelers. HBA Northern Kentucky the Enzweiler Apprentice Training and Trade School! With gratitude and my sincerest appreciation,

thomas napier, PhD

Thomas Napier, Ph.D. Director of Professional Development Home Builder’s Association of Northern Kentucky

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Multifamily Housing Growth Poised to Continue in 2013 Written by Robert Dietz

A

fter years of downturn, home building is now solidly contributing to economic growth. An important factor behind that growth has been the expansion of multifamily construction such as apartment buildings and condominiums. As a result of the housing crisis, homeownership is down, particularly among younger households. In addition, the overall number of households—homeowners and renters combined—is down compared to where it should be given the population growth. This trend has translated into a lot of potential in household formation—as many as two million future households according to some estimates, with most of them expected to become renters as economic and labor market conditions improve. The result for the building industry has been an increase in the demand for rental units, which in turn has reduced rental vacancy rates and driven demand for multifamily construction. For example, the number of empty rental units shrunk greatly in the last two years according to the Census Bureau’s quarterly Housing Vacancy Survey. Peaking at just over 11 percent, the current measure stands at 8.7 percent as of the end of 2012, comparable to levels seen in early 2002. With fewer units available for a growing number of renters, 2012 marked significant growth in multifamily construction. The graph below charts multifamily units started on a smoothed, three-month moving average. After falling to a low of 75,000 units a year in late 2009 (a greater than 75 percent drop in activity from the peak of the market), new construction now comes in at a 306,000 rate on an annualized basis, a 49 percent improvement year-over-year. And this growth should continue. Survey data of multifamily developers, as reported by the National Association of Home Builders (NAHB) Multifamily Production Index (MPI), suggests more businesses seeing positive market conditions. The most recent reading of the MPI was 52, with any reading above 50 indicating more developers seeing an improving environment. The MPI has been above 50 for three straight quarters as of the third quarter of 2012. The NAHB Economics forecast for multifamily construction projects another strong annual increase in 2013. Multifamily starts should increase another 31 percent over 2012 to 335,000 total units for the year. And like growth in other parts of the housing sector, this additional development activity should add jobs to the construction sector, about 1,110 jobs for every 1,000 multifamily units built according to industry estimates. Wild cards in the multifamily forecast could be the fate of various policy issues. For example, the future of the Low-Income Housing Tax Credit could be affected by tax reform. The tax credit is a major development tool that ensures the financing of affordable housing and supports about 95,000 jobs annually. The tax treatment of carried interest is also under debate. While typically associated with financial interests and fund managers, a 18

Northern Kentucky BUILDER

carried interest is a common and important mechanism in the real estate industry to attract investment, allocate business risk, and align the interests of developers and investors. Increasing the tax rate on carried interests for real estate would reduce the rate of multifamily construction going forward. Robert Dietz is an economist with the National Association of Home Builders (NAHB). Previously an economist with the Congressional Joint Committee on Taxation, Robert writes on housing and policy issues at NAHB’s economics blog Eye on Housing. Follow Robert on Twitter at @dietz_econ. The information presented here does not necessarily represent the views of NAHB or its membership.


2013 MILLENNIUM CLUB All-Rite Ready Mix Arlinghaus Builders, LLC Ash Insurance, C.K. Barnes, Dennig & Co. Ltd Bray Trucking, Inc. Cutter Construction, Inc. Drees Company Dudley Construction Co. Inc. Ernst Concrete Fischer Homes Florence Nursery & Landscaping Florida Tile, Inc. Fulcher Rankin Insurance Grant Co. /Gallatin Co. Concrete Kelly Bros. Lumber Kentucky Federal Savings & Loan Kentucky FluidAir, Inc. L & N Federal Credit Union Logan Lavelle Hunt Insurance Agency M & W Excavation Co., Inc. Sims-Lohman Fine Kitchens & Granite Thelen Associates, Inc. Tri-City Insurance Service, Inc. VonLehman & Company, Inc. Wiseway Supply

ALL-RITE READY MIX

“Where Quality and Service Save You Time and Money” Florence, Kentucky 139 Aristocrat Dr. (859) 371-3314 Aurora, Indiana 10513 Morgans Branch Rd. (812) 926-0920 Wilder, Kentucky 108 Williams Way (859) 572-9951 Harrison, Ohio 7466 New Haven Rd. (513) 738-1933 Port Union, Ohio 5259 Rialto Road (513) 860-5111

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KY

The Millennium Club is an elite group of companies whose contribution pays for the refreshments and entertainment at membership meetings and events like the Annual Golf Outing, Tabletop Night, and the Inaugural Luncheon. Northern Kentucky BUILDER

19


Annual Housing & Economic Forecast

T

he Annual Housing & Economic Forecast Breakfast held at the Radisson Hotel on May 9th was a rare opportunity to network with Northern Kentucky’s top three business organizations. The event was held by the Home Builders Association of Northern Kentucky Sales & Marketing Council, Northern Kentucky Chamber of Commerce and the Northern Kentucky Association of REALTORS™. Attendees learned insightful information from the region’s economic leaders about today’s economy and the economy of the next three years. If you missed this event you can download the presentation slides : http://www.hbanky.com/ site/publisher/files/May%209%202013%20 Housing%20and%20Economic%20Forecast. pdf, or use your smartphone to download it using the QR code above.

Pictured Top, L-R: Steve Stevens, President & CEO, Northern Kentucky Chamber of Commerce; Dan Tobertge, President & CEO, Northern Kentucky Tri-County Economic Development Corp.; Janie Wilson, Association Vice President, Northern Kentucky Association of REALTORS™; Janet Harrah, Senior Director, Center for Economic Analysis & Dev., Haile/US Bank College of Business, Northern Kentucky University. Bottom, Left, Brian Miller, Executive Vice President, HBA.

Janis Beard, Director of Membership Celebrates 25 Years of Service to HBA!

A

t the April 2013 HBA Board of Directors meeting the HBA leadership took time to congratulate Janis Beard and thank her for her years of dedicated service to the HBA. Janis began her time at the HBA in February of 1988 as help from a temporary staffing agency. Over the next several months HBA management was so happy with her work that she was asked to take on fulltime employment at the HBA where she began on May 2, 1988. Over the last 25 years Janis has taken on many roles at the HBA including receptionist, administrative assistant, membership coordinator and finally Director of Membership in 1999; the position she holds today. Many of Janis’ past duties have included staff 20

Northern Kentucky BUILDER

training and managing the Northern Kentucky Builder magazine among many other responsibilities. Over the years Janis has grown into her role of liaison for the Ambassador Club, the Membership committee, the Sales & Marketing Council, Registered Builder/Remodeler Committee, and the Associates Committee. She manages several events and duties at the HBA including the Associates Outing, HBA affinity programs, Continuing Education Records, Membership Development and Records Retention, HBA Annual Golf Outing, and the Holiday Party & Inaugural Ball. Janis, the HBA is proud to have you as a part of our team and we look forward to many years to come as a valued part of the HBA. Congratulations!


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Covington 3502 Latonia Avenue (at 35th Street) 859.581.0400 | Dry Ridge 85 South Main Street 859.824.3371 | Owenton 3885 Highway 127 North 502.484.0242

HBA’s Parade of Homes is Back in 2013 at Saylor Woods Subdivision in Independence. The perfect storm is coming… The 2013 Parade of Homes at Saylor Woods quite possibly could be the single most attractive buying opportunity for new home buyers in our lifetimes! WELCOME TO SAYLOR WOODS Terrace Holdings, the Developer of Saylor Woods Subdivision is proud to host the 2013 Parade of Homes and welcomes these participating Builders: Cullen Brothers Custom Homes (William Cullen (513.615.2269, cullenbrothersllc.com) Drees Homes (John Heisler, 859.458.9032, dreeshomes.com) HammonsBradley, LLC (Gary Hammons 859.393.8414, HammonsBradley.com) Potterhill Homes (Amy Kennedy, 859.250.3001, potterhillhomes.com) Adam Miller Homes (Adam Miller, 859.652.4393, adammillerhomes.com) Alan Schmidt Construction (Doug Delay, 859.283.2874, schmidtbuilders.com) B.O.L.D Company (James Kegley, 859.657.6700, theboldcompany.com) Arlinghaus Builders (Ted Arlinghaus, 859.392.8906, arlinghausbuilders.com)

Saylor Woods

September 7-22, 2013

Northern Kentucky BUILDER

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Protect Personal Assets From Corporate Debts Written by Ryan M. McLane

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o rational business owner wants to be involved in litigation. Lawsuits are expensive and bad for business. Nevertheless, involvement in a legal dispute at some point is virtually inevitable for most companies. Deals go bad, accidents happen, and people violate the law. These realities highlight the need for prudent business owners to take precautionary steps in order to protect themselves from some of the ill effects of litigation. The mistakes made by the defendants in a recent Kentucky Court of Appeals case demonstrate the danger of failing to take such precautions. The Kentucky Court of Appeals decided Smith v. Bear, Inc. in April of this year. The case involved a Kentucky corporation, Smith Services, Inc., that developed a running fuel account with a local gas station, Bear Inc. Over time, Smith Services accrued a $26,000 unpaid balance on its fuel account. Bear, Inc. filed suit on the debt against both Smith Services and its sole shareholder, Tony Smith. Bear, Inc. eventually obtained a judgment against Mr. Smith personally (not just the company) for over $130,000 (on the $26,000 debt)! However, this was an avoidable disaster for Mr. Smith. Had he taken certain basic precautionary steps, he could have avoided personal liability for his company’s debt and dramatically reduced the judgment amount. Mr. Smith’s two worst mistakes were (1) attempting to defend the lawsuit himself; and (2) failing to preserve the protection of his personal assets that his corporation would have provided. Mr. Smith’s first mistake speaks for itself—his self-representation resulted in the $26,000 corporate debt ballooning into a $130,000 personal judgment. Mr. Smith’s second mistake compounded the problem. Incorporating one’s business protects the owner’s assets from the debts and liabilities of the company. Creditors generally cannot pursue an owner’s personal assets to satisfy corporate debts. However, it is not as easy as simply filing the corporate paperwork. Mr. Smith lost his corporate protection because: (1) he failed to file the corporation’s annual reports; (2) he failed to undertake any of the required corporate formalities (no shareholder meetings, no minutes kept, no distributions or salaries paid, etc.); and (3) he funneled $173,434 in corporate assets to himself through “loans” from the company. One may not use his or her corporation as a sham to avoid personal debts, taxes, and liabilities. In such situations, a court will “pierce the corporate veil” and permit a creditor to pursue the owner’s personal assets. It appears that Mr. Smith attempted to “loan” himself all the corporate monies and shut down his company in an effort to prevent Bear, Inc. from being able to collect on Smith Service’s fuel account debt. This scheme backfired. Had Mr. Smith simply paid himself a reasonable salary and maintained a minimum level of corporate formality, he could have avoided personal liability for the defunct company’s debts. Do not end up like Mr. Smith. Incorporate your business, honestly follow the basic corporate rules, and consult with a lawyer if sued. These simple precautions can prevent a $26,000 corporate debt from turning into a $130,000 personal nightmare. If you would like to know more about these issues, please contact Ryan McLane, a Northern Kentucky associate in the Construction, Medical Malpractice, Administrative Law, and Civil Litigation Practice Groups at Dressman Benzinger LaVelle psc. Ryan can be reached at (859) 426-2143 or via email at rmclane@dbllaw.com.

Northern Kentucky BUILDER

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What’s New with Pella

Pella Impervia Dual-Color Option NOW AVAILABLE! Neither wind nor rain nor sleet or snow stops determined mail carriers. Nor do those elements and other climate extremes phase Pella Corporation’s energy-efficient Pella Impervia line, expanding in the Summer of 2011 to include White interior option for all units. Pella Impervia windows and patio doors offer more style and design flexibility for your customers. With the new dual-color option, Pella Impervia products can have a White interior with the choice of White, Tan or Brown exterior. Pella Impervia windows and patio doors arrive pre-finished with a powder-coat paint finish on both interior and exterior. This durable finish stays looking great for years with little care.

“We’re pleased to offer more innovative solutions to builders and homeowners living in areas where a stronger, more durable window is a must,” said Duane Putz, director of sales and marketing for Pella Impervia. “This product is made for hot, cold, wet or windy climates and now it’s available in more styles.” Pella Impervia can withstand the forces of Mother Nature without cracking, shrinking or warping in extreme weather conditions. The sleek-profiled innovative products made from Duracast®, the strongest most durable material in windows and doors, are virtually maintenancefree and well-suited to today’s busy lifestyles and balanced budgets for home and business owners.* Builders, remodelers and homeowners may choose from convenient factory prefinished brown, white or tan color options and now have a White interior!

For more information, please contact your local Pella representative or call 513-936-5240. 24

Northern Kentucky BUILDER


Buy The t Bes

“Concretely

Yours ” ™

“Your supermarket for concrete accessories and masonry equipment”™

Thank you contractors, building owners and greater community for the opportunity to serve you. Service, service and more service. That is the Janell mantra.

Concrete forms Concrete chutes Silt fencing Mortar Mixers Concrete Buggies Formwork drafting services

Cincinnati 6130 Cornell Rd. Cincinnati, OH 45242 P: (513) 489-9111

Cures & Sealers Chemicals Grouts Hand Tools Power Tools Pourform plywood

Cincinnati 4686 Paddock Rd. Cincinnati, OH 45229 P: (513) 651-9111

Columbus 831 Harmon Ave. Columbus, OH 43223 P: (614) 224-9111

Polyfilm Concrete blankets Stakes Wall ties Safety gear Expansion joint

Erlanger 2930 Crescent Springs Rd. Erlanger, KY 41018 P: (859) 341-9111

www.janell.com

Caulks Decorative Concrete Supplies Decorative Concrete Stamps Masonry Supplies

Lexington 970 New Circle Rd. Lexington, KY 40511 P: (859) 254-9111

Dayton 800 East 1st St. Dayton, OH 45402 P: (937) 866-9111


MEMBER MIX & MINGLE

ASHLEY QUARTERS FLORENCE, KY

Join us at the SMC Member Mix & Mingle! It’s a great opportunity to network!

Thursday, June 20, 2013 5:30 - 8:00 p.m.

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Ashley Quarters - 4880 Houston Rd., Florence, KY

FREE EVENT! Appetizers & Beverages Door Prizes

Think outside the box.

IT’S FREE TO ATTEND, SO BRING A FRIEND!

Reservations Required by Tuesday, June 18 Call (859) 331-9500 or e-mail janisbeard@hbanky.com

Hosted by

Northern Kentucky Building Permits SINGLE FAMILY

April ‘13

#

MODULAR HOMES

#

MULTI FAMILY

#

CONDOS

#

COMMERCIAL

#

COMMERCIAL REMODELING

#

RESIDENTIAL REMODELING

7

$367,500

1

$500,000

4

$2,910,000

15

$6,836,377

63

$931,735

1

$12,000,000

11

$3,205,050

10

$168,559

1

$1,200,000

21

$17,896,587

22

$426,695

6

$87,300

BOONE

36

$6,005,661.0

CAMPBELL

9

$1,627,224.0

KENTON

18

$2,817,862.0

GRANT

1

$175,000.0

0

$0.0

64

$10,625,747

1

$42,000

7

$367,500

1

$500,000

6

$16,110,000

47

$27,938,014

101

$1,614,289

SINGLE FAMILY

#

MODULAR HOMES

#

MULTI FAMILY

#

CONDOS

#

COMMERCIAL

#

COMMERCIAL REMODELING

#

RESIDENTIAL REMODELING

2

$1,145,012

47

$6,417,600

85

$1,123,484

9

$2,573,318

20

$563,902

2

$1,000,000

20

$2,370,770

36

$836,604

1

$42,000

CARROLLTON GALLATIN MASON OWEN TOTAL

April ‘12

BOONE

24

$4,587,503

CAMPBELL

4

$1,310,234

KENTON

27

$4,695,516

GRANT

3

$355,000

1

$56,000

6

$111,000

1

$120,000

1

$175,000

4

$51,000

TOTAL

59

$11,068,253

JAN-FEB-'13

222

$37,064,416

2

$132,000

51

$3,776,644

5

JAN-FEB-'12

200

$31,617

0

$0

83

$5,097,000

0

CARROLLTON GALLATIN MASON OWEN

26

Northern Kentucky BUILDER

KY

4

$2,145,012

78

$11,592,688

151

$2,685,990

$1,100,000

15

$28,556,964

281

$66,409,300

325

$5,898,213

$0

9

$11,785,688

338

$58,892,414

425

$7,795,403


BUSINESS MEETINGS AT A GLANCE / call 331-9500 for reservations or to confirm dates

2

3

4

HBA Golf Outing, Triple Crown Country Club, Starting at 9:00am

5

9

10

6

Remodelers Issues, 12:00 pm, HBA

7

8

NAHB Spring Board & Legislative Conference, Marriott Wardman Park Washington D.C.

11

12

13

14

15

20

21

22

27

28

29

5

6

Membership/Retention Meeting, 11:30 am, HBA

17

18

19 Associates Committee Meeting, 8:30 - 9:30am, HBA

23

24

25

State & Local Government Committee Meeting, 12-1 pm, HBA

1

30

sunday

30

26

Executive Committee Meeting 1:30 - 3:30 pm, HBA Board of Directors, 3:30pm, HBA

Finance Committee Meeting, HBA

monday 1

LDC Board of Governors 11:00 am, LDC Luncheon, Annual SD1 Meeting & Awards, 12:00 pm, HBA

Ambasador Club, 12:00 pm, HBA

3

2

tuesday 2

june

16

4

wednesday 3

thursday 4

friday

saturday

5

6

12

13

18

19

20

25

26

27

2

3

Independence Day HBA Offices Closed

7

8

9

10 SMC Board of Governors Meeting, Noon, HBA

14

15

16

11 Remodelers Issues, 12:00 pm, HBA

Membership/Retention Meeting, 11:30 am, HBA

17

july

LDC Board of Governors 11:00 am, HBA

21

22

23

State & Local Government Committee Meeting, 12-1 pm, HBA

28

29

24

Executive Committee Meeting 1:30 - 3:30 pm, HBA

Ambasador Club, 12:00 pm, HBA

30

Board of Directors, 3:30pm, HBA

31

1

Northern Kentucky BUILDER

27


PRSRT STD US POSTAGE NO

PAID

RTH

ERN KENTU

CINCINANTI OH PERMIT 5400

Y CK

2751 Circleport Drive Erlanger, Kentucky 41018

ADDRESS SERVICE REQUESTED

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Nkb 6 2013 press