Building Business News January 2015

January 2015

A Night of Celebration and Awards Inaugural Celebration Pictures Page 3 HBA Award Winners Page 5 Kansas and Missouri Legislative Agendas Page 6 Economic Forecast Breakfast 2015 Page 10

Boulevard Brewery was a festive site as December’s Inaugural Dinner brought together HBA members and guests for an evening of celebration and awards.

The event is a special night to welcome the incoming President of the Board of Directors, the new executive committee, and present the annual HBA awards which recognize the outstanding contributions of individuals who have made a lasting and significant impact on housing in Kansas City. Those awards include the Bob Bollier Award for Sales and Marketing, the Fred J. Geier Associate of the Year, the Builder Hall of Fame and Next Generation Builder. See pages 3 and 5 for more on the 2014 recipients and the remarks from the awards presentation.

Become an Affiliate Member for Only $25 The HBA Board of Directors, at their November meeting, voted to reduce Affiliate membership dues from $150 to $25. This allows the HBA to offer special benefits to individuals who were previously classified as dependants of member companies.

Affiliate membership includes the following benefits: • National Association of Home Builders (NAHB) membership • Access to NAHB discounts on a variety of items (see nahb.org/ma) for Member Advantage • Listing in the HBA’s printed member ship directory and in the online direc tory at www.kchba.org

Plan to make your voice heard in Kansas and Missouri state capitols.

See page 7 for Legislative Day information.

2015 Executive Committee Members Harold Phelps, Chris Ragland, Brenner Holland, Mark Mather, Kevin Kirtley and Sara Corless at the Inaugural Celebration

• Personal invitations to HBA events • Electronic copy of the Building Business News • Easier registration process for NAHB

events and the NAHB website member features • Eligibility to serve on HBA committees We are excited to offer this membership level at such a reasonable rate. In order to be included in the printed 2015 membership directory, the dues payment must be received by January 14, 2015.

Invoices were sent to dependant members listed in the HBA database and the response has been positive.

This process has also allowed staff to update the records as companies have contacted us with names that should be deleted or added. We appreciate those who have taken the time to do this and encourage all members to help update their

member record by contacting HBA staff with changes.

www.kchba.org | Volume 21, No. 1 | January 2015

January Calendar Past Presidents Welcome Fred Delibero

Jan. 7 Labor Shortage Roundtable Jan. 8 & 9 Residential Construction

Superintendent Classes Jan. 8 Associates Council Meeting Jan. 14 Economic Forecast

Breakfast 2015 Jan. 15 Sales & Marketing

Council Meeting Jan. 20 – 22 International Builders’

Show, Las Vegas Jan. 28 Kansas Legislative Day Jan. 29 & 30 Residential Construction

Superintendent Classes

Bob Frost (2004 President) presents Fred Delibero with his medal

Each year those who have served as president of the Home Builders Association gather for dinner to induct the most recent past president into their circle. Nine past presidents and their spouses were able to attend this year’s celebration at Summit Grill as Fred Delibero (2013 President)

was presented with his Past President medal. The wealth of home building experience represented by this group is an invaluable resource for the HBA and we appreciate their on-going participation in the Association.

For more information or to register for any event, go to www.kchba.org or call 816-942-8800

Past Presidents Buzz Dulaney (1987/88), Bob Sailors (1979), Richard Mather (1978), Bruce Rieke (2005) and George Schluter (2008)

We proudly support the home building industry.

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January 2015 | Volume 21, No. 1 | www.kchba.org

A Night of Celebration and Awards

Boulevard Brewery provided a scenic space for the Inaugural Dinner Randy and Katy Herrington, ProSource

Dinner guests enjoyed Joe’s Kansas City Bar-B-Que

Teresa Edinger, McCray Lumber and Kellie Warren, Property Law Firm

Dialogue with KCMO Planning and Development Department Leads to Improvements

KCHBA Board Approves 2015 HBA-PAC Trustees

On November 13, 2014, a group of Kansas City, Missouri (KCMO) builders met with staff from the KCMO Planning and Development Department for an open dialogue on several building issues. Topics ranged from double inspections to clarification on the information that is required on a master plan to hiring additional plan review staff. The open dialogue provided builders with the opportunity to resolve issues big and small. For example, some builders had experienced double inspections when new inspectors are in the process of being trained. KCMO staff assured the builder group that the practice would end unless the training inspector finds a blatant safety issue. KCMO staff also assured builders that they understand the need to hire additional plan review staff

The KCHBA’s Political Action Committee, HBA-PAC, will kick off the year with new Trustees to carry out its work of supporting pro-housing candidates. The KCHBA Executive Committee nominated and the Board of Directors unanimously approved the following KCHBA members to serve as the 2015 HBA-PAC Trustees: Bob Frost (Chair), Tommy Angotti, Tom French, Mark Hoffman, Brenner Holland, Kevin Kirtley, Jon Lambert, Harold Phelps, Chris Ragland, George Schluter, Michael Snodgrass, Mark Mather, Richard Mather and Tom Woods.

and are in the process of moving towards this goal to meet the high demand for permits and provide clarification on comments to builders in a timely manner.

KCMO builders also requested clarification on when a complete set of plans are required on the job site. KCMO Information Bulletin 100 includes information regarding which inspections require plans on site and when a complete set must be provided to an inspector. The builder group and KCMO staff agreed that getting together once or twice a year is a great way to ensure that we are working together and clearly communicating about all aspects of the construction process. For a complete summary of the meeting, please visit the current issues page at kchba.org.

A key reason for the KCHBA’s strength is its active political affairs program. HBAPAC Trustees meet face-to-face with elected officials to discuss issues impor3

tant to the industry. KCHBA members are also strong supporters of BUILD-PAC, the political action committee for the National Association of Home Builders.

Contributions to BUILD-PAC are shared with local candidates, allowing KCHBA members the opportunity to support candidates at the grassroots, state and federal levels who understand the importance of housing. KCHBA members can get involved by attending HBA-PAC events throughout the year or by contacting Beatriz Ibarra at bibarra@kchba.org.

www.kchba.org | Volume 21, No. 1 | January 2015

This month’s tip is:

New OSHA Reporting Requirements Beginning Jan. 1, 2015, ALL employers will be required to notify OSHA of workrelated fatalities within eight hours, and work-related in-patient hospitalizations, amputations or losses of an eye within 24 hours.

Employers have three options for reporting these severe incidents to OSHA: • Call your nearest area office during normal business hours; • Call OSHA at 800-321-OSHA (800-321-6742); or • Report online at www.osha.gov/report_online.

Previously, OSHA’s regulations required an employer to report only work-related fatalities and in-patient hospitalizations of three or more employees. Reporting single hospitalizations, amputations or loss of an eye was not required under the previous rule.

Am I required to prepare and maintain records?

Employers with more than 10 employees and whose establishments are not classified as a partially exempt industry must record work-related injuries and illnesses using OSHA forms 300 (log of injuries), 300A (summary of injuries) and 301 (incident report). Employers are not responsible for reporting on subcontractors. Subcontractors are considered separate employers by OSHA and must maintain their own OSHA records.

For more information about this item, please contact Robert Matuga at 800-368-5242 x8507 or via email at rmatuga@nahb.org.

Thanks to These HBA 2014 Sponsors Platinum sponsor

Bank of Blue Valley GOLD sponsors

Capitol Federal Bank Factory Direct Appliance First Federal Bank Henges Insulation K & E Flatwork Kansas City Star Kenny’s Tile & Flooring McCray Lumber & Millwork Nebraska Furniture Mart

Northcraft Flooring & Granite Owen Lumber Co. Phelps Engineering ProBuild Shamrock Cabinets Star Drywall & Insulation Sun Lumber Co. United Heating, Cooling & Plumbing Wells Fargo Silver sponsors

Ferguson Enterprises, Inc. Stewart Title

Kansas Gas Services Missouri Gas Energy

Bronze sponsors Building Solutions Carpenters District Council Commerce Bank Complete Home Concepts Continental Title Company CrossFirst Bank 4

First American Title Hermes Landscaping Kansas City Title Kitchens & Baths by Briggs Locks & Pulls North American Savings Bank

Pacific Mutual Door & Window Pella Products of Kansas City ProSource of Lenexa Secured Title of Kansas City Western Chandelier 84 Lumber

January 2015 | Volume 21, No. 1 | www.kchba.org

2014 HBA Awards Presented at Inaugural Celebration Jenni Mann, Hunt Midwest Bob Bollier Award for Sales and Marketing Presented by Alan White, 2013 Award Recipient We are very pleased to honor a member of the new wave of HBA leadership, Jenni Mann. Jenni Mann joined Hunt Midwest in 2012 as manager of residential marketing. She is responsible for marketing Hunt Midwest’s 12 current residential communities located in Kansas City’s Northland, Platte County, North Kansas City, Lee’s Summit and Raymore, Missouri.

Jenni holds a bachelor’s degree in Urban Studies from the University of Missouri Kansas City and serves the community in a number of organizations. What Jenni is most famous for at the HBA is how she helped jump-start the Sales and Marketing Council back to life. Jenni and Roy Ragland took it upon themselves to reinvigorate this vital program with the goal to help builders sell homes more effectively.

The council offers educational opportunities, awards and recognition programs, and sales and marketing tools to its members.

Jon Lambert, Pacific Mutual Door and Window Fred J Geier Associate of the Year Presented by Misty Hanson, 2013 Award Recipient Jon Lambert is no stranger to this podium as he was awarded the Associate of the Year in 1995. Some past winners fade into the sunset but Jon has stayed in the spotlight as one of the HBA’s most dedicated associate members and president of Pacific Mutual Door and Window.

You are no doubt familiar with the quality of PMD products and services, but you may not realize the company’s history dates back to 1912. Jon credits PMD’s successes to his grandfather who brought a keen sense of business to the table early on by carefully watching changes, adapting to those changes and anticipating future needs in the industry. Jon says, “That’s a mindset we still have today.”

His quiet and steady support shows a level of commitment that the HBA is fortunate to enjoy and deeply appreciates. There is a comfort in benefiting from someone

Jon Lambert, Jenni Mann, Chris Ragland and Shawn Woods were presented with the HBA’s 2014 Awards

whose family business has withstood 100 years of changes, from wars to floods to economic lows and highs. Jon and company are as strong as ever and are still here to meet the needs of lumber yards, contractors and ultimately, area homeowners.

he’s asked to help. He is particularly stellar with issues around codes and permits.

We are thrilled he is serving on the Board of Directors where we look forward to his refreshing brand of leadership.

Chris Ragland, Homes by Chris

Shawn Woods, Ashlar Homes

Builder Hall of Fame

Next Generation Builder

Presented by Dan Norburg, 2013 Award Recipient

Presented by Justin Pfeifer, 2013 Award Recipient

Chris brings a wealth of experience to this honor as an award winning builder and as our most recent past president. Chris and her husband Roy are the owners of Homes

by Chris based in Liberty, Missouri. They began home building in 2003 and prior to that Chris worked professionally in business promotions and public relations for Sealright Packaging and in communications for Aventis Pharmaceuticals. She is a graduate of the University of Missouri, Columbia with a degree in economics and earned a master’s degree in business administration from Rockhurst University.

The Next Generation Builder Award is recognizing the achievements of one young leader who exhibits these important characteristics: a quality builder, an involved and innovative volunteer, and reliable spokesperson for the industry. That individual is Shawn Woods.

Shawn grew up around home building with his family. His father, uncle and grandfather were all involved in home building and though Shawn tried to work in an office job with the Federal Reserve, he said he couldn’t do it and needed to be a home builder. Remarkably, when businesses were touch-and-go during the tough economy, Shawn started Ashlar Homes and began his own legacy of building quality homes. He has a reputation of working tirelessly in the construction of his homes and, at the HBA, he steps up every time

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Since becoming an HBA member in 2004, Chris has volunteered on a range of committees and joined the executive committee in 2012. In addition, she is involved at NAHB as a Builder 20 Trustee and Board member. Of all of Chris’ contributions to the HBA the ones most memorable to her

are the Next Generation Builder Award and the Artisan Home Tour that will take place in September 2015. If there is a theme with these it’s that they both recognize the best. She sees the best in the next generation and wants to recognize those qualities. She also sees the best in new home construction and wants to extend the success of the Parade of Homes into a new event that will showcase some of the best custom home builders in Kansas City.

Click this logo at

www.kchba.org to login to your account

Online Resources for HBA Members!

Register for HBA Events with Safe & secure online registration. Personalized calendar of events.

Get notification of your events

Update Your Membership

Call today 816-942-8800, or email gina@kchba.org or scorless@kchba.org

www.kchba.org | Volume 21, No. 1 | January 2015

2015 Kansas Legislative Agenda

2015 Missouri Legislative Agenda

The HBA’s 2015 Kansas Legislative Agenda includes long-standing policy issues that are important to HBA members and key to a strong housing industry. The HBA’s Government Affairs Committee will continue to monitor legislation and recommend policy positions as necessary.

The HBA’s 2015 Missouri Legislative Agenda includes long-standing policy issues that are important to HBA members and key to a strong housing industry. The HBA’s Government Affairs Committee will continue to monitor legislation and recommend policy positions as necessary.

Green Building: The HBA supports non-mandatory initiatives to promote the use of green building technology in residential construction. The HBA supports flexibility in guidelines and certification programs that include standards, such as the ICC 700 National Green Building Standard and the Home Innovation Research Labs’ NGBS Green Certification program.

Workers Compensation Reform: The HBA supports the requirement that everyone in the construction industry carry workers’ compensation insurance.

Top Priorites Taxes: The HBA opposes any changes to state tax policy that adversely impacts economic growth and homeownership, including but not limited to, efforts to eliminate the mortgage interest deduction, property tax deduction and state historical tax credit. The HBA supports any tax credit or grant for new home buyers and the State Housing Trust Fund.

Licensing: The HBA opposes license and/or registration legislation on a statewide basis. The HBA believes licensure is best addressed at the local level.

Building Codes: The HBA opposes any legislation creating a uniform statewide building code.

Important Priorites Fire Sprinklers in Residential Structures: Fire sprinklers in one and two family residences and townhomes should remain a consumer option.

Currently no political jurisdiction is allowed to adopt mandatory fire sprinklers in their residential building code.

Growth Management: The HBA opposes limits on new development, including impact fees, urban growth boundaries and excise taxes.

Workers’ Compensation Insurance: The HBA supports the requirement that everyone in the residential construction industry carry workers’ compensation insurance.

Unemployment Compensation Fund: The HBA supports the refunding of the Unemployment Compensation Trust Fund by means that are fair, reasonable and balanced.

Top Priorites Taxes: The HBA opposes any changes to state tax policy that adversely impacts economic growth and homeownership, including but not limited to, efforts to eliminate the state mortgage interest deduction, property tax deduction and State Historic Tax Credit. The HBA supports any tax credit or grant for new home buyers and the State Housing Trust Fund.

Education Funding: While recognizing the connection between economic development and quality education, the HBA supports funding based on actual costs, administrative consolidation and further expansion of local funding options.

Repeal Platting and Taxation Requirements: The HBA supports repealing the provisions of KSA 191207 implemented with Senate Bill 193(2011). The HBA opposes paying a tax before it is levied and the burdensome efforts associated with estimating, collecting and refunding the projected tax bill Federal Regulation: The HBA urges local and state governments to join the HBA in supporting critical federal legislation, such as housing finance reform, and opposing federal regulation that adversely impacts the home building industry and hampers economic growth, such as the Endangered Species Act and other burdensome U.S. Environmental Protection Agency and Army Corps of Engineers regulation.

Education Funding: While recognizing the connection between economic development and quality education, the HBA supports funding based on actual costs, administrative consolidation and further expansion of local funding options.

Building Codes: The HBA opposes any legislation creating a uniform statewide building or energy code.

Transportation: The HBA generally supports investments in transportation infrastructure.

Important Priorites

Federal Regulation: The HBA urges local and state governments to join the HBA in supporting critical federal legislation, such as housing finance reform, and opposing federal regulation that adversely impacts the home building industry and hampers economic growth, such as the Endangered Species Act and other burdensome U.S. Environmental Protection Agency and Army Corps of Engineers regulation.

Artificial Growth Management: The HBA opposes limits on new develop ment, including impact fees, urban growth boundaries and excise taxes.

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Recording Fees: The HBA generally opposes any additional fees proposed on recording instruments. The HBA supports redirecting any current recording fees towards housing initiatives, such as the State Housing Trust Fund.

Licensing: The HBA opposes state license and/or registration legislation for home builders. The HBA has also opposed mandatory statewide licensing of home inspectors. The HBA believes licensure is best addressed at the local level.

Fire Sprinklers in Residential Structures: Fire sprinklers in one and two family residences and townhomes should remain a consumer option. Currently local governments are prohibited from mandating residential fire sprinklers in their building code.

The HBA supports making this prohibition permanent by eliminating the December 31, 2024 sunset on the prohibition.

Please contact Beatriz Ibarra, Vice President of Government Affairs, at (816) 733-2237 or bibarra@kchba.org with any comments or questions.

Green Building: The HBA supports non-mandatory initiatives to promote the use of green building technology in residential construction. HBA supports flexibility in guidelines and certification programs that include standards, such as the ICC 700 National Green Building Standard and the Home Innovation Research Labs’ NGBS Green Certification program.

Please contact Beatriz Ibarra, Vice President of Government Affairs, at (816) 733-2237 or bibarra@kchba.org with any comments or questions.

January 2015 | Volume 21, No. 1 | www.kchba.org

KCHBA Board Approves 2015 Kansas and Missouri Legislative Agendas The KCHBA Board of Directors unanimously approved the 2015 Kansas and Missouri Legislative Agendas at its December meeting. The Government Affairs Committee had met in early December to review past legislative priorities and discuss issues that KCHBA members expect will be debated in the next legislative sessions. The Legislative Agendas will direct the KCHBA’s lobbying efforts in the Kansas Legislature, Missouri General Assembly and at the local level, and serve as a guide for KCHBA members during our annual events, Kansas Legislative Day in Topeka and Missouri

Legislative Day in Jefferson City.

Committee Co-chairs Harold Phelps, Phelps Engineering, Inc., and Brenner Holland, Hunt Midwest Real Estate Development, Inc., and Committee members also discussed issues that HBA members face day-to-day in their businesses and the pro-active steps the KCHBA could take to help alleviate bureaucracy and find savings through changes in state and local policy. The KCHBA and its members expect a big year in government affairs as legislators continue to debate tax reform, budgets and building codes.

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2014 Missouri Legislative Day meeting Under the statewide organizations, the Home Builders Association of Missouri (HBAM) and Kansas Building Industry Association (KBIA), KCHBA members have an important opportunity to meet face-to-face with their elected representatives in Topeka and Jefferson City. The annual Legislative Days provide an important opportunity for members to share the KCHBA’s legislative agendas, continue to build relationships with elected officials and remind them that the KCHBA is paying attention to the actions taken at the state level. KCHBA members also learn more about legislation impacting the home building industry and network with fellow KCHBA members and HBA members from both states. These events are long-standing traditions that are key to the KCHBA’s advocacy efforts.

There is much at stake for the home building industry as Kansas and Missouri

lawmakers continue to debate taxes, the budget and transportation issues. The housing industry should also stay alert about the possibility of revisiting a statewide energy code in Missouri and a possible elimination of the state mortgage interest deduction. It is critical that lawmakers hear the KCHBA member’s perspective on these issues as they are debated in the Kansas Legislature and Missouri General Assembly.

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To register for these events or for any questions, please contact Beatriz Ibarra at bibarra@kchba.org or (816) 733-2237

2015 Legislative Days Kansas Legislative Day Wednesday, January 28 Missouri Legislative Day Wednesday, February 25

HengesInsulation.com • 913-764-4600 7

www.kchba.org | Volume 21, No. 1 | January 2015

Earn the Residential Construction Superintendent Designation HBI’s Residential Construction Superintendent (RCS) Designation is a sought-after training program designed for current and aspiring jobsite superintendents in the residential building sector. Developed by industry subject matter experts, the RCS Designation teaches the rigors of this important construction management role.

Eight courses comprise the RCS Designation: CODES AND QUALITY CONTROL January 29, 1:00 p.m. to 5:00 p.m.

GENERAL PROJECT MANAGEMENT January 8, 8:00 a.m. to 12:00 p.m.

Define quality within your company by identifying five essential quality components. Learn to set performance expectations based on this quality foundation. Outlines a superintendent’s responsibilities regarding codes and provides tips on how to enforce code compliance on the job site.

Topics include managing production operations through the planning, action and review (PAR) method as well as understanding estimates.

This course offers an overview of the many facets and responsibilities of a superintendent.

PLANNING AND SCHEDULING January 8, 1:00 p.m. to 5:00 p.m.

HIRING, TRAINING AND SUPERVISION January 30, 8:00 a.m. to 12:00 p.m.

Improve planning and scheduling skills to increase profits, effectiveness and on-time deliveries. Learn five fundamental scheduling methods to help manage a project successfully from start to finish.

Examines the common mistakes made during the interview process and outlines a series of steps to help ensure each trade contractor and/or employee is the right fit for the company. Explore tips and tools for setting and measuring performance expectations.

BUDGET MANAGEMENT AND COST CONTROL January 9, 8:00 a.m. to 12:00 p.m.

Understand the importance of the superintendent’s role regarding profitability, and how to control the critical elements of job costs. Includes tips on identifying the costs to everyone when a job is not done right the first time.

TRADE CONTRACTOR AND OFFICE RELATIONS January 30, 1:00 p.m. to 5:00 p.m.

$

Learn to spot promising characteristics in workers and subcontractors. Offers tips for creating a win/win partnership with internal customers and provides proven strategies for dealing with conflict.

CUSTOMER SERVICE AND HOMEOWNER RELATIONS January 9, 1:00 p.m. to 5:00 p.m.

The HBA of Greater Kansas City

LOCATION:

Ascertain the human and business needs of customers. Learn how to meet and exceed expectations by avoiding the “seven deadly sins” of customer service.

Learn how to effectively deal with the difficult customer.

600 East 103 St. Kansas City, MO 64131 The HBA of Greater Kansas City 816-942-8800 • www.kchba.org 600 East 103 St. Kansas City, MO 64131 816-942-8800 SPEAKER: www.kchba.org

Justin Honey, Professor, Pittsburg State University

SPEAKER: COST:

Justin Honey, Professor (Per class) (Cost for the entire program) Pittsburg State University

SAFETY AND SECURITY January 29, 8:00 a.m. to 12:00 p.m.

Protect the job site by learning the essential components of a safety program. Examine the most common OSHA citations and how to prepare for an OSHA inspection. Review a superintendent’s responsibilities to adequately protect the job site.

$150 – MEMBERS $200 – NONMEMBERSCOST:

$995 – MEMBERS $1250 – NONMEMBERS

(Per class)

For registration or more information contact: Andrew McKeegan, andrew@ $150 – MEMBERS kchba.org, 816-733-2224$200 or Dawn Allen, dawn@kchba.org, 816-733-2239 – NONMEMBERS About instructor: (Cost for the the entire program) Justin Honey is a Professor$995 in the – Construction MEMBERS Management Progaram at Pittsburg State University.

He– has 20 years of experience in residential $1250 NONMEMBERS construction, with nearly 10 years as a general manager for one of the largest builders in the nation. He is a frequent instructor at IBS. 8

January 2015 | Volume 21, No. 1 | www.kchba.org

NAHB Delivers in Lackluster Congress Though the 113th Congress is destined to be the least productive legislative session in 40 years in terms of laws passed, NAHB was able to achieve considerable victories for our members.

A Dec. 11 article in The Hill detailing the top 10 lobbying victories of the year cited NAHB efforts to enact flood insurance reform, noting that “Congress rolled back changes to the nation’s flood insurance program enacted only two years ago, in a victory for the National Association of Realtors, the Independent Community Bankers of America, the National Association of Counties and the National Association of Home Builders, among others.

In 2014 alone, NAHB estimates the flood insurance law will result in: $755 million more in new home construction because it is now easier for potential new home buyers to sell their existing home and trade up. $361 million a year in additional remodeling activity because there is no longer added insurance expense for certain remodeling jobs.

New Homes. Provides builders a $2,000 tax credit for exceeding energy standards by 50%. The base energy code is the 2006 International Energy Conservation Code plus supplements. Section 45L is expected to save home builders $267 million in taxes for 2014 construction activity.

home building and remodeling. The Farm Bill enacted into law earlier this year is a major victory for NAHB. It includes an important provision championed by NAHB that will help members living and working in rural areas across the nation.

The legislation allows more than 900 communities to retain their status as “rural” areas where residents have access to important rural housing programs that help low- and very-low income households buy their own homes or find suitable rental housing. This enables millions of Americans to maintain access to critical rural housing programs.

Section 25C Tax Credit for Qualified Energy Efficiency Improvements. This is a credit worth up to $500 (subject to a $500 lifetime cap), with lower caps for certain products like windows, for consumers to install qualified energy efficient upgrades.

Remodelers often leverage 25C tax credits when working with clients. Section 25C is expected to save home owners who remodel $832 million in taxes for 2014 improvements.

NAHB economists estimate that each of these 900-plus communities will receive on average more than $1 million in economic activity this year in USDA loans and grants for new construction and remodeling – funding that would have been lost had the law not been passed. In 2014 alone, it will generate an additional $1.2 billion in housing investment.

Other Key Laws Contribute to a Builder’s Bottom Line In addition, NAHB played an instrumental role in shepherding through Congress important legislation that helped the housing community:

In one of their last official acts of business before adjourning, the House and Senate approved H.R. 5771, the Tax Increase Prevention Act, which will renew scores of temporary tax provisions known as “tax extenders” that expired this year. The oneyear retroactive renewal, which is through 2014 and dates back to Jan. 1, includes several provisions of interest to the housing community.

Farm Bill generates $1.2 billion in additional

Section 45L Tax Credit for Energy Efficient

Section 163 Deduction for Private Mortgage Insurance. Allows taxpayers, subject to an income cap, to deduct premiums paid for private mortgage insurance. The deduction for PMI is expected to save home owners $919 million for tax year 2014. See the full list of housing tax extenders.

Workforce Act Funds Training for Careers in Home Building

KCHBA Plans Labor Shortage Roundtable The KCHBA will host a Labor Shortage Roundtable on Wednesday, January 7 at 2:00 p.m. at the KCHBA. This membership-wide event will include workforce development experts, including representatives from local community colleges and workforce development agencies, to discuss the challenges and opportunities for creating the next generation of workers in the residential construction industry.

Experts will also share information on what resources are available for businesses to meet their labor needs.

The National Association of Home Builder’s surveys and data show that shortages of labor and subcontractors have become substantially more widespread since last year. There are shortages in all aspects of the industry but shortages in

carpentry, framing and bricklayers/masons are high on the list. The even greater shortages in subcontractors are concerning because it accounts for a large share of the work in residential construction.

Overall, the effect of shortages in both labor and subcontractors has forced businesses to pay higher wages/subcontractor bids, raise home prices and has led to difficulty completing projects on time. Part of the shortages can be explained by the fact that many skilled residential construction workers sought employment in other fields during the recession and have not come back to residential construction.

KCHBA members and experts will discuss the local perspective at the Labor Shortage Roundtable on January 7. To participate, please contact Beatriz Ibarra at bibarra@ kchba.org.

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NAHB championed this bill because it will help alleviate labor shortages in the housing industry by providing investment and resources to train workers for careers in home building and other industries.

In addition, the law reauthorizes the Job Corps and Youthbuild programs as federal programs operated through the US Department of Labor.

Water Resource Development Act will Improve Levees The President in June signed into law the Water Resource Development Act. NAHB strongly supported this measure because it makes much-needed investments in our country’s underperforming levees, opening the door to new building opportunities.

This measure provides funding to enhance long-delayed flood control projects, ultimately protecting home owners in flood-prone areas. This will enable NAHB members to build homes in areas protected by better quality flood control systems.

Housing markets that stand to benefit from authorization include Sacramento, Calif.; Topeka, Kan.; Fargo, N.D.; and Cedar Rapids, Iowa.

www.kchba.org | Volume 21, No. 1 | January 2015

Economic Forecast Breakfast 2015

Step Up to Higher Profits.

Will 2015 be a good year for the housing sector? What can we expect in the labor market? Will the cost of building materials increase or decrease in 2015?

Get these and other questions answered at the HBA’s annual Economic Forecast Breakfast on Wednesday, January 14 at 8:30 a.m. at the Overland Park Convention Center. David Crowe, Chief Economist and Senior Vice President, the National Association of Home David Crowe and Chris Kuehl Builders, will provide the latest economic Registration and networking begins at and housing forecast from NAHB’s wealth 8:00 a.m. At 8:30 a.m., breakfast will be of information. Crowe is expected to served and the presentations will begin. discuss projections for building material The program concludes at 10:00 a.m. prices, the labor market, interest rates and Board members—please note that the share builder sentiment from across the January board meeting will immediately country. Chris Kuehl, co-founder and follow this event. With over 50 particiPresident, Armada Intelligence, will pro- pants already registered be sure to make vide his analysis of our local and national your reservation before we reach capaceconomic prospects. Both economists ity. To register for this event, please visit have presented at the HBA in the past to kchba.org or contact Andrew McKeegan at Andrew@kchba.org. rave reviews.

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10

January 2015 | Volume 21, No. 1 | www.kchba.org

Plan Now for Spring Home and Trade Shows

The Home Show provides consumers one-stop shopping for home improvement projects

The Home Builders Association will offer opportunities to showcase your business products and services through two different venues this spring. The Johnson County Contractor Licensing Spring Education Seminar will be held March 25 through March 27 and be combined with a Trade Show at the Overland Park Convention Center. This Trade Show was very well received at the Fall Education Seminar held in October and a large crowd of building professionals will be in attendance this spring. This Trade Show offers vendors the opportunity to reach a targeted group of decision makers. To reserve a

Spring Contractor Licenses classes will bring a specialized audience to the Trade Show

booth, contact the HBA at 816-942-8800.

participants. Interested vendors should contact the HBA for reservations and information.

Open to HBA builder members only, the Builders Row Trade Show will be held in conjunction with the Home Show and KC Lawn & Garden Show. Open on Friday, March 20th, the Trade Show will give builders the opportunity to gather information on the latest products available from building trade vendors. Last year’s event drew a large number of builders who found new products and services and enjoyed the camaraderie of their peers. Booths will be open from 11 a.m. till 4 p.m. and the event will include lunch and education for

The Home Show and KC Lawn & Garden Show, open to the public, will fill Bartle Hall March 20th through March 22nd. Kansas Citians have made the Home Show a tradition for the past sixtysix years and the 67th annual show promises to be especially exciting. Headlining the 2015 Home Show will be Chip and Joanna Gaines, stars of HGTV’s Fixer Upper. Chip and Joanna have been flipping, remodeling, and fixing up homes

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11

together for the past 12 years in Waco, TX. This “can’t be stopped” couple also run a real estate company, construction company, design firm, residential subdivision, boutique home furnishings store, and successful blog! The HBA is pleased to welcome back local presenters, Kristin Rieke and Jennifer Allwood. These dynamic women will return to the stage with trends and techniques audience members can use right away to make their homes more beautiful. Booth space is filling up rapidly for the Home Show—don’t delay in contacting the HBA to place your business in front of thousands of eager consumers.

www.kchba.org | Volume 21, No. 1 | January 2015

Member Anniversaries BuildingBusinessNews

1948 Overhead Door Company of K.C.

THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY

1967 Moffitt Built

January 2015 • Volume 21 • Issue 1 Copyright 2015

1972 Shamrock Cabinet

Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 (816) 942-8800

1985 Locks & Pulls 1986 Riffe Homes, Inc.

Executive Vice President Sara Corless Editor Marcia Jurgens Contributing Writer: Beatriz Ibarra Graphics Karla Peterie, Creative Services

1987 Prieb Homes, Inc.

2015 Executive Committee Home Builders Association of Greater Kansas City President Mark Mather Vice President Brenner Holland Secretary/Treasurer Harold Phelps Associate Representative Kevin Kirtley Immediate Past President Chris Ragland

1989 Hearthside Homes of Kansas City, Inc. 1990 Sherri L. Weaver Design, L.L.C. 1991 Dahmer Construction, Inc.

To subscribe to Building Business News call (816) 733-2224 To advertise in Building Business News call (816) 942-8800 For change of address requests please fax changes to (816) 942-8367 or call (816) 942-8800 For more information, visit the HBA online at www.kchba.org

1996 Morrill & Janes Bank 1997 Owen Lumber Company 2002 Teague Lumber Company 2003 31-W Insulation Company, Inc. 2004 Steve Scherer Construction Company 2006 Principal Builders, LLC Quigley Custom Homes, LLC 2007 Blackburn’s All Star Roofing, Inc. K Hill Builders Surface Center Interiors 2008 A Place Called Home Const. Co., Inc. Estes Custom Homes, LLC 2009 Performance Plus Homes Singleton Construction LLC 2010 Jo Co Mtg 2011 Carpenters District Council of Greater St. Louis Hilmann Home Building Inc K. C. Builders & Design, Inc Price Residential Group LLC ProSource of Kansas City

12

2012 Ashlar Homes, LLC Covenant Homes, LLC Grisamore Real Estate Group K2 Home Builders Klopfenstine Construction, Inc. LP Building Products 2013 Cable-Dahmer Chevrolet Calyn Homes LLC Cardinal Crest Homes Dan Rowe Properties Digital Lagoon, Inc. Foushee Homes, Inc. Ideal Homes KC M.D.L. Investments, Inc. McFarland Custom Builders Refined Interior Staging Solutions Wolf Creek Homes LLC Wyss Construction, LLC 2014 Armstrong-Citywide Inc Braco Sales, Inc. Building Solutions Curt Riley Custom Homes, LLC Darol Rodrock Homes Evan-Talan Homes, Inc Fountain City Custom Homes Gabriel Homes Inc. Knoll Creek Homes, LLC Midwest Block & Brick Monumental Lawn & Outdoor Mutual of Omaha Bank Re/Max Mid States Region Screen Warehouse Siegel Tax Law

January 2015 | Volume 21, No. 1 | www.kchba.org

New Members SRK Construction, LLC Stan Klinksick 2307 S. Outer Road Blue Springs MO 64015 (816) 229-4242 www.srkconstruction.net Changeit, Designs & Staging Sue Shores 5715 Mo Valley Rd Platte Woods, MO 64151 (816) 665-1177 www.changeitkc.com Interurban Restoration & Construction Larry Wilmes P.O. Box 213 Dearborn, MO 64439 (816) 596-1828 B.R. Coppinger Construction, LTD Bill Coppinger 18347 158th Street Winchester, KS 66097 (816) 858-9009 Foust Fleet Service JD Clark 5600 SW 29th St Topeka, KS 66614 (785) 766-6000 www.foustfleetleasing.com Homes by Patty Farr Patty Farr 15335 NW 128th St Platte City, MO 64079 (816) 405-7712 www.pattyfarr.com Sprint Lumber, Inc. Scott Laderoute 6024 NE US Hwy 169 St. Joseph, MO 64505 (816) 232-3335 www.sprintlumber.com Buckner Surplus Don Leven 021 Washington Buckner, MO 64106 (816) 650-5252

Affiliate Memberships McFarland Custom Builders Ralph Yeater PO Box 25285 Kansas City, MO 64119 (816) 215-1660 www.mcfarlandkc.com Bliss Associates, LLC Nick Bell 1000 Walnut St, Ste 920 Kansas City, MO 64106 (816) 221-9100 www.blissappraisal.com Dobberstine Custom Homes, Inc. Brent Dobberstine 304 Camelot Dr Liberty, MO 64068-1187 (816) 792-1700 www.dobberstinehomes.com Ashlar Homes, LLC Joel McIntyre 309 NW 10th St Blue Springs, MO 64015 (816) 228-1188 www.ashlarhomeskc.com

TELL YOUR STORY

Clay County Savings Bank Mario Usera 1178 W Kansas Liberty, MO 64068 (816) 781-4500 www.claycountysavings.com

Promote your community or new homes to over 200,000* new home shoppers each week that read The Kansas City Star’s real estate sections either in print or online. Call for details 816-234-4739

Banks Blue Valley Pools & Spa Roger Banks 8026 W. 151st Overland Park, KS 66223 (816) 985-8579 www.bankspools.com

IN

* Source: Scarborough research, August 2013

Besel’s Jeremy Greenamyre 300 Santa Fe Street Leavenworth, KS 66048 (913) 682-7000 www.besels.com

To advertise, call your account executive or Sharon Horgan at (816) 234-4739 13

www.kchba.org | Volume 21, No. 1 | January 2015

November Housing Activity Slows for Holiday Months

HBA Staff Sara Corless Executive Vice President scorless@kchba.org, 816-733-2216

With a typical November dip in permit activity, the metro area saw 306 single family permits issued during the month, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. The year to date single family permit total is 3,897 compared to 2013 with 3,802 for a 2 percent increase. The local increase in multi-family housing is following nation-wide trends with 381 permits issued during November, bringing the 2014 year to date multi-family count to 3,627.

Beatriz Ibarra Vice President of Government Affairs bibarra@kchba.org, 816-733-2237 Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219

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Marcia Jurgens Director of Administration marcia@kchba.org, 816-733-2215 Andrew McKeegan Association Services Manager Andrew@kchba.org, 816-733-2224

“With 2014 nearly complete, we see that it is almost identical to 2013, which was a year of recovery.” said Executive Vice President Sara Corless, “National economists are predicting that home building activity should increase significantly in 2015

Phil Yancey Membership Manager Phil@kchba.org, 816-733-2245 Dawn Allen Executive Assistant/Communication and Events dawn@kchba.org, 816-942-8800 Stephanie Stollsteimer Director of Marketing and Special Projects stephanie@kchba.org, 816-733-2213 Kelcee Schlotzhauer Events and Administration Assistant kelcee@kchba.org, 816-942-8800

and we hope that will be the case locally, as well.”

Comparing regions of the metro area, Missouri North counties have an increase of 4%, Missouri South counties have issued 8% more permits and Kansas counties have a slight decrease of 1%, when compared with year to date permit counts as of November 2013. Of the larger cities in the area, Kansas City, Missouri has the largest increase at a 21% increase, permits issued in Kansas City, Kansas have grown by 9% and Shawnee reports a 33% increase. Johnson County tops the list of counties in number of permits issued, although its share of the total has decreased from 41% to 39%.

Kansas City HBA Headed to Sunny Las Vegas The Kansas City Home Builders Association will celebrate at the 2015 International Builders’ Show as Tom Woods is installed as chairman of the National Association of Home Builders.

A special reception will be held in Tom’s honor on Thursday, following the Spike concert. The KCHBA Hospitality Suite, sponsored by Laclede Gas, Wilson Lighting and McCray Lumber will be open on Tuesday, January 20 beginning at 4 p.m. The schedule below lists events of particular interest to Kansas City HBA members. For a complete schedule of IBS events, visit www.buildersshow.com.

Event

Date/Time

Venue

Gold Key and Platinum Clubs BUILD-PAC Reception Opening Ceremonies with speaker Jon Gruden KCHBA Hospitality Suite

Monday, January 19 7:00 – 10:00 p.m.

To be determined

Tuesday, January 20 8:00 a.m.

Tuesday, January 20 4:00 – 6:00 p.m.

Wednesday, January 21 8:30 – 10:30 p.m.

Westgate (LVH) Paradise Event Center HBA suite at the Encore

Thursday, January 22 8:00 a.m. – 2:00 p.m.

Thursday, January 22 5:00 – 7:30 p.m.

Thursday, January 22 7:30 p.m. – 9:30 p.m.

To be determined

Young Professionals After Hours Party (ticketed event) NAHB Board of Directors Meeting Spike Concert – ZZ Top Reception for Tom Woods, 2015 NAHB Chairman, hosted by Kansas City HBA 14

For questions or more information, please contact Dawn Allen at 816-733-2239 or dawn@kchba.org.

Mandalay Bay – House of Blues

Westgate (LVH) Paradise Event Center Westgate (LVH) Paradise Event Center, Pavilion 4

January 2015 | Volume 21, No. 1 | www.kchba.org

Residential Building Permit Statistics

CASS COUNTY Archie Belton Cass County Cleveland Drexel Garden City Harrisonville Lake Winnebago Lee's Summit Peculiar Pleasant Hill Raymore Village of Loch Lloyd

CLAY COUNTY Clay County Excelsior Springs Gladstone Kansas City Kearney Lawson Liberty North Kansas City Pleasant Valley Smithville JACKSON COUNTY Blue Springs Buckner Grain Valley Grandview Greenwood Independence Jackson County Kansas City Lake Lotawana Lee's Summit Oak Grove Raytown Sugar Creek PLATTE COUNTY Edgerton Kansas City Parkville Platte City Platte County Riverside Weatherby Lake Weston JOHNSON COUNTY De Soto Edgerton Fairway Gardner Johnson County Leawood Lenexa Merriam Mission Hills Olathe Overland Park Prairie Village Shawnee Spring Hill Westwood

Single Family Units^

M-F Units Sale%

M-F Units Rent

Total Units

S-F Units YTD

M-F Sale YTD

0 2 9 0 0 0 0 0 1 0 1 4 0 17

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 2 9 0 0 0 0 0 1 0 1 4 0 17

9 10 41 0 0 0 5 4 25 7 15 89 13 218

0 0 0 34 6 0 6 3 0 1 50

0 0 0 0 0 0 0 0 0 0 0

0 0 0 275 0 0 0 0 0 0 275

0 0 0 309 6 0 6 3 0 1 325

7 0 10 0 2 7 3 33 1 30 2 0 0 95

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 15 0 0 0 0 0 15

0 9 0 0 13 0 2 0 24

0 0 0 0 0 0 0 0 0

0 0 0 11 4 10 8 1 0 35 13 2 6 1 0 91

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

November 2014 November 2014 M-F Rent YTD

Total Units YTD

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

9 10 41 0 0 0 5 4 25 7 15 89 13 218

21 2 5 511 54 1 30 13 0 50 687

0 0 0 0 0 0 0 0 0 0 0

0 0 0 741 0 0 0 0 0 0 741

21 2 5 1252 54 1 30 13 0 50 1428

7 0 10 0 2 7 3 48 1 30 2 0 0 110

162 0 67 7 35 54 48 84 12 271 18 0 0 758

0 0 0 0 0 0 0 0 0 0 0 0 0 0

108 0 0 0 0 0 0 584 0 162 0 0 0 854

270 0 67 7 35 54 48 668 12 433 18 0 0 1612

0 0 0 0 0 0 0 0 0

0 9 0 0 13 0 2 0 24

0 155 54 1 99 0 10 0 319

0 0 0 0 0 0 0 0 0

0 355 0 0 0 0 0 0 355

0 510 54 1 99 0 10 0 674

0 0 0 0 0 0 0 0 0 0 0 0 0 0 91 91

0 0 0 11 4 10 8 1 0 35 13 2 6 1 91 182

13 0 1 71 46 82 180 4 4 485 369 16 189 41 0 1501

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 506 0 0 216 552 0 0 0 91 1365

13 0 1 71 46 82 686 4 4 701 921 16 189 41 91 2866

Single Family Units^ LEAVENWORTH COUNTY Basehor 6 Lansing 3 Leav. County 1 Leavenworth 2 Tonganoxie 1 13 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill

November 2014

M-F Units Sale%

M-F Units Rent

Total Units

S-F Units YTD

M-F Sale YTD

M-F Rent YTD

Total Units YTD

0 0 0 0 0 0

0 0 0 0 0 0

6 3 1 2 1 13

101 18 51 9 25 204

0 0 0 0 0 0

0 0 0 0 0 0

101 18 51 9 25 204

0 0 9 9

0 0 0 0

0 0 0 0

0 0 9 9

11 1 151 163

0 0 0 0

0 0 312 312

11 1 463 475

0 7 0 0 0 7

0 0 0 0 0 0

0 0 0 0 0 0

0 7 0 0 0 7

4 37 0 1 5 47

0 0 0 0 0 0

0 0 0 0 0 0

4 37 0 1 5 47

306

0

381

687

3897

0

3627

7524

Comparison of Single Family Building Units for Greater Kansas City

(Cass, Clay, Jackson, Platte, Johnson, Leavenworth, Miami, Wyandotte Counties)

Month/Year January February March April May June July August September October November December

2007

2008

2009

2010

2011

2012

2013

2014

Annual Total

6,385

3,232

2,155

2,471

2,301

3,299

4,090

3,897

353 475 824 687 677 616 546 515 397 597 385 313

221 262 353 441 231 260 311 293 264 314 167 115

96 129 131 184 189 204 196 207 219 226 192 182

137 145 252 228 213 239 180 243 173 279 173 209

90 121 180 210 230 262 204 205 202 205 185 207

188 182 270 277 294 268 288 260 379 331 283 279

273 224 335 444 337 333 409 354 384 369 340 288

283 219 361 441 381 359 358 347 377 465 306

All numbers shown in the box above are ACTUAL numbers.

Comparison of Permits By Units Issued Year to Date* 2007-2014

15

2007 2008 2009 2010 2011 2012 2013 2014

S-F Units 6072 3117 1973 2262 2094 3020 3802 3897

M-F Units

1378 1830 692 253 600 1749 2768 3627

Total Units

7450 4947 2665 2515 2694 4769 6570 7524

^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units and are divided by sale/rent. # Not available at time of report Permit information reflects the most recent data at time of publication. In order to ensure accurate recording of residential building permit statistics, the HBA may revise monthly and year-to-date figures when updated data is made available.

www.kchba.org | Volume 21, No. 1 | January 2015

Sales and Marketing Council Serves at the Ronald McDonald House Enter Your Homes in the Spring Parade When the weather warms up after a long and cold winter, area home buyers will be ready to tour new homes. The 53rd annual Spring Parade of Homes, April 25th through May 10th, is the perfect opportunity to showcase new construction builders have been working on through the fall and winter. The early deadline for Parade entries is January 16th; the regular deadline is January 30th and the latest possible entry date is February 6th.

Don’t miss this chance to participate in a Kansas City spring tradition as the home buying season kicks off. Entry forms can be downloaded from the HBA’s website, kchba.org. Questions may be directed to Gina Battle at gina@kchba.org or phone 816-733-2219.

SMC members provided a delicious lunch for guests of the Ronald McDonald House

The HBA’s Sales and Marketing Council had a great time serving lunch at the Ronald McDonald House in early December. Special thanks to those who planned, shopped, cooked, served and cleaned up: Jerry Ratway, Weber Flooring

/ Joe’s Carpet, Jared Webb, The Kansas City Star, Meredith Toliver, ReeceNichols, Jenni Mann, Hunt Midwest, Dee Grisamore, Grisamore Real Estate Services, Helen Bartlett, Refined Interior Staging Solutions, and Dawn Allen, KC

HBA. Ronald McDonald House Charities is the official charity partner of the Artisan Homes Tour. Plans are underway to provide meals on a regular basis at the Ronald McDonald House with the help of HBA committees and councils.

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