Building Business News May 2024

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12 Cybersecurity - What You Need to Know

With NAHB’s recent notification about some local associations having been targeted by phishing scams to access member data and send email renewal notices, it’s a good time to brush up on your security susceptibility.

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This award season saw 162 contest entries; 81 for Pick of the Parade and 81 for Distinctive Plan & Design.

Pete St. Peter Mentors

Basehor-Linwood Students

“I started mentoring this year because it seemed like a place that I could help get these kids interested in the trades where we need them badly,” said St. Peter. “I joke with them that it’s just like another day on a jobsite dealing with 16 kids!”

Mellick Wins Regional Teacher of the Year; in Running for State Member News

The KCHBA would like to congratulate Ryan Mellick, the Bonner Springs High School construction teacher, for not only being named Bonner Springs School District Teacher of the Year, but also Region 3 teacher of the year. He’s now in the running to be named Kansas teacher of the year.

Ryan’s students regularly participate in the KCHBA’s Foundations for the Future Week building playhouses for the Parade of Playhouses and wood projects for KC MADE. If you see Ryan, be sure to congratulate him!

KCHBA Members Win Big at 2024 designKC Awards

DesignKC Magazine hosted the 2024 designKC Awards Gala at the Abbott on Jan. 25 to recognize outstanding projects in the home-design industry. Entry projects range in categories from commercial and multifamily to outdoor, single-space, whole-house remodels and custom new builds. Any Kansas City-area home industry professional was eligible to enter the competition, which received a total of 155 entries.

The 21-person judging panel included some KCHBA members: Jeff Ashner (Ashner Construction) and Scott Bickford (Bickford and Co). Look for a special-edition winners’ issue of designKC Magazine, which was available on newsstands and online April 30.

Congratulations to the KCHBA members who won awards:

• Ashner Construction

• B.L. Rieke Custom Homes

• Bickford & Company

• Bickimer Homes

• Catalyst Construction

• Cecil & Ray Homes

• EPIC Landscape Productions

• Faust Construction

• Fieldstone Homes

• Gartman Remodeling

• Grace & Nell Homes

• Holthaus Building

• Homoly Design + Build

• Rodrock Homes

• Roeser Homes

• NSPJ Architects

• SAB Homes

• Starr Homes

• SVB Wood Floors

• Tom French Construction

Member News

SCI Hosts Interior Design Students from JCCC

SCI hosted 13 interior design students from Johnson County Community College at its facility last month. The day started with a presentation on countertop materials, custom applications and some fun projects SCI recently worked on for inspiration! Sarah Harrington and Amanda Gravenstein with SCI showed them around the showroom, talked about different considerations and specifications when working with clients. The day ended with a tour in SCI’s stone fabrication shop, seeing firsthand how countertops are fabricated.

“We’re passionate about what we do, and we take every opportunity we get to share that with others, especially the future generation,” said Gravenstein. “If we are even a small part of someone committing to a life and career in the construction industry, then that’s what it’s all about.”

Pitt State Students Design Plans for Homes by Chris

This spring, Holly Page-Sagehorn, a design teacher at Pittsburgh State University contacted Homes by Chris about developing a home plan as a class assignment. Homes by Chris gave the parameters of the lot size, home size, municipality of the build, along with the number of bedrooms, baths, office, etc. that was required.

“This was the first residential project for many of the students and they really got some great “real” experience, which is something hard to provide on my own,” said Page-Sagehorn.

Each team presented its plan and design, interior and exterior, to Homes by Chris. The entire class came to Kansas City for a field trip and viewed HBC’s current product in the market. HBC reviewed the preliminary plans and then made a trip to Pittsburgh State campus for the formal presentation by the students.

It was a very positive experience and collaboration for Homes by Chris and Homes by Chris even hired an intern from the class for the summer.

NAHB Warns of Fraudulent Emails Targeted at HBAs

NAHB has notified HBAs across the country about some local associations having been recently targeted by phishing scams in which the perpetrators have accessed member data from HBA websites and emailed renewal notices to their membership using the HBA’s name and/or logo. The scammers are attempting to fraudulently collect members’ sensitive information and solicit fraudulent membership dues payments.

If any suspicion that an email is fraudulent, contact the KCHBA directly. Common warning signs of phishing attacks include:

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A text message or email that you didn’t expect or that comes from a person or service you don’t know or use. Spelling errors or poor grammar.

Mismatched links (a seemingly legitimate link sends you to an unexpected address). Often, but not always, you can spot this by hovering your mouse over the link without clicking on it, so that your browser displays the actual destination. Shortened or odd links or addresses.

An email request for your account number or personal information (legitimate providers should never send you emails or texts asking for your password, account number, personal information, or answers to security questions). Offers or messages that seem too good to be true, express great urgency, or are aggressive and scary. Strange or mismatched sender addresses.

• The Federal Trade Commission (FTC) has valuable sites for reporting phishing and identity theft scams:

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The FTC’s IdentityTheft.gov website should be used to report identity theft.

The FTC’s Consumer Information website (https://consumer.ftc.gov/articles/protect-your-personal-information-anddata) has resources for consumers where they can learn how to protect themselves online and avoid phishing attacks.

KCHBA Announces Spring Parade Award Winners

KCHBA members celebrated the spring Parade award winners at Fiorella’s Event Center on Wednesday, May 1. The KCHBA hosted teams comprised of 40 industry professionals from across the Midwest on April 25 and 26 to evaluate the entries.

This award season saw 162 contest entries; 81 for each award. Pick of the Parade recipients are judged based on the quality of materials used, workmanship and overall construction.

Distinctive Plan and Design award winners are recognized for outstanding interior design and architecture. Winners are determined based on furnishings, accessories, functionality and curb appeal of the homes.

A special thank you goes to Matt Stewart, reporter at Fox4, and Dennis Shriver, 2024 KCHBA president and owner of Hearthside Homes, for being the emcees for the evenings festivities.

For a full list of the winners, visit kchba.org/kc-paradeof-homes/winners. For awards ceremony photos, head to the KCHBA Facebook page.

Thank you again to our 2024 Parade of Homes presenting sponsor, Mike Bryant Heating & Cooling.

Congratulations to the winning entries!

The Impact of Mortgage Rates on Housing Affordability

According to the latest press release from Freddie Mac, the average rate on a 30-year fixed-rate mortgage has now risen to approximately 7.25 percent. Based NAHB’s priced-out data, at this rate, only about 27.5 million (out of a total of 134.7 million) U.S. households could afford to buy a median-priced new home, based on their incomes and standard underwriting criteria.

As many analysts have noted, interest rates and house prices interact with each other to determine new home affordability. Forexample,ifthecostsofproducinghomes and the resulting prices to buyers were reduced (for instance, by adopting some of the measures in NAHB’s 10-point plan to lower shelter inflation), more than 4.5 million households would be priced into the market by reducing interest rates from 7.25 percent to 6.25 percent, which was the mortgage rate in mid-February 2023.

For example, approximately 27.5 million households are able to afford the median-priced new home at a 7.25 percent mortgage rate. If the rate fell back to 6.25 percent, an additional 4.5 million (for a total of approximately 32 million) households would be priced into the market.

This change is particularly relevant, as NAHB is currently projecting that the average mortgage rate will be near 6.25 percent by the end of 2024 — although there is considerable uncertainty around this number, largely because of uncertainty about what monetary policy the Federal Reserve will find necessary to contain inflation.

This article provided by NAHB’s NAHBNow blog (5/9/24)

You may think that as a small business, no cybercriminal would ever attack you. You might ask why anyone would choose to target your company. But cybersecurity should be of concern to every business, regardless of size. Indeed, the smaller your business, the more vulnerable you may be. Ask yourself these questions:

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Do you store important business information on a computer or other device connected to the internet?

Do you ever share important information by email?

Do you use your computer to pay invoices?

• If the answer is “yes” to any of these questions, then you really should read on, because you probably need to take steps to protect important, electronic information.

The risks include:

Ransomware attacks, common in the homebuilding industry, involves cybercriminals holding data and networks hostage for payment.

Cyber criminals may attempt to hack your networks, risking loss of operating funds, business interruptions, and work delays. This in turn may create liability to third parties such as customers.

Hackers could steal customer or proprietary data like building designs or bid data.

With the advent of computerized work technology, hackers may interfere with projects, causing bodily injury and property damage via remote access systems. •

Consider the information in your business that needs to be protected. It may include:

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Intellectual property (such as blueprints, schematics, patents) and licenses

Material pricing

Bid data

Bank records and other financial information

Employee information (including health information)

Customer data

Once you have identified these assets, identify the technology that stores or processes this information. This technology may include emails, cloud storage, websites, computer network systems, laptops, cell phones.

Once you have identified technology, ask yourself this question: Do you have a system in place to manage access to your business information and assets?

This system should include:

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Securing the information transmitted/received and stored

Update virus protections software/security programs

Utilize web and email filters to block users from accessing harmful websites or receiving email from malicious actors

Secure wireless access points to ensure only authorized systems connect to the network and that communication between devices are encrypted and not visible to others

Encrypt sensitive data

Patch operating systems and applications

Use multi factor authentication, whenever available

Backup critical data and applications regularly

Making sure each employee has unique passwords and accounts to ensure accountability for their actions

Limiting users and/or limiting access to information to only users who require for business purposes

Regularly train employees on cybersecurity best practices, ensuring they understand and comply with company policies through regular updates and sign-offs.

This training may include:

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How to recognize and avoid data breaches/attacks

What to do if an attack or breach is suspected

What not to do if an attack or breach is suspected

Do you regularly change passwords and avoid reuse?

Weak passwords cause 80 percent of cybercrimes

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Using an outside IT firm to do a security audit, test security, and create security plan

Creating response and recovery plans. What will you do to ensure the business keeps operating in the event of a data breach or cyber-attack?

• In addition to putting a system in place to secure private and/or sensitive data, business owners should consider cyber insurance in order to minimize and transfer the risk of any potential losses. There are several types of coverage:

Data breach expenses

Cyber Ransomware

Business interruption

Fraudulent wire transfer

Tech Errors & Omissions

Another way to minimize and transfer the risk of loss is by reviewing your contracts with non-employees such contractors, subcontractors, architects, vendors, etc. and determine whether it is necessary to include provisions in those contracts that will safeguard your private information. Such provisions may include:

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Approval of cloud-based project management and file sharing platforms, including how information is stored and disposed of

Creation of a uniform and secure method of data transmission and file sharing

Prohibition on unsecured file-sharing platforms

Mandatory and routine data security training for any one on their projects with access to project data

Insurance requirement for all losses and damages arising from data security incidents of any kind, from breaches to accidental losses.

Every small business wants to minimize the risks that might harm their ability to continue operating, cost them money or damage their company’s name and reputation. Therefore, it is important to understand cybersecurity and take to mitigate risks and provide a way to recover from any cyber threats.

Article provided by NAHB and developed with assistance from Philip R. Stein, Esq., Bilzin Sumberg, 1450 Brickell Avenue, 23rd Floor, Miami, Florida 33131. Mr. Stein may be contacted at pstein@bilzin.com.

Pete St. Peter Mentors Basehor-Linwood Students

KCHBA member Pete St. Peter, owner of PCDI, has been mentoring at the Basehor-Linwood High school helping with the Geometry and Construction class. This is the class that builds the playhouse every year for the KCHBA Foundation’s Parade of Playhouses and is taught by Mrs. Little.

“I started mentoring this year because it seemed like a place that I could help get these kids interested in the trades where we need them badly,” said St. Peter. “To me it was a way to get right to where they are making decisions about their futures and help motivate them in the direction of construction.”

There are 16 kids in the class I help teach, 15 boys and one girl. St. Peter helps when he is asked to, so earlier in the year he helped with a project where they built small walls out of 2x4s, installed drywall and then finished the drywall. That project took about two weeks and he helped every day.

“We had a little break in between that for about three weeks and then we started the playhouse,” said St. Peter. “For the playhouse, I was there almost every day for about six weeks and even came in in the afternoon to help when we got close to finishing,” said St. Peter. “The playhouse project is such a great way for them to see a project from start to finish from design to delivery at Union Station and then to be topped off with a winning playhouse.”

St. Peter just started again earlier this month helping the students build hexagon picnic tables for the middle school. “I really enjoy teaching them and they really seem to get into it,” said St. Peter. “I joke with them that it’s just like another day on a jobsite dealing with 16 kids!”

The Geometry and Construction class is a one-year class that is essentially a math class that adds in the construction aspect to teach real world application and to keep the kids engaged.

Mrs. Little and St. Peter have been talking about how the school can add a true shop class that can be a multi-year elective that would allow students to start as Freshman and build on learning construction skills every year.

“We have discussed possibly offering sheds (like Tuff-shed storage sheds) to the community for sale and the class builds them and the money goes back into helping improve the class,” said St. Peter. “I know Mrs. Little would like to see some of the students participate in the KC Made projects but since they don’t have a true shop class the kids don’t get enough instruction to learn the skills to build those kinds of projects.”

Bashor-Linwood is growing quickly so St. Peter hopes it’s coming. The school just started an interior design class this year and that class helped with selecting finishes and decorating the playhouse.

“As a busy home builder I can’t become a teacher full time, but I am trying to put in as much time as I can and to help facilitate ideas to keep the school thinking about how to add classes in the future,” said St. Peter.

For now, it really is a lot of fun for St. Peter and hopefully a few of these kids will look at construction as a great career path that moves them into the workforce faster than traditional college, without the debt, and to be just as prosperous.

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New Members

Atteberry Homes LLC

Paul Atteberry 14959 W 157th Ter Olathe, KS 66062 913-991-3000 www.Atteberryhomes.com

Howard Builders, LLC

Randy Howard 24216 Timberlodge Ln. Mount Hope, KS 67108 316-648-0508 howardbuildersllc.com

Integrity Operations LLC

Susan Ford-Hernandez 1714 NE Chapel Woods Dr. Lee’s Summit, MO 64064 816-916-7708 www.integrityopsllc.com

KC Concrete Inc.

Colby Hodges 15954 S Mur-Len Rd. Olathe, KS 66062 913-609-5355

KC Stone, LLC

Brad Smith

131 Cherry Hill Dr. STE #3 Belton, MO 64012 913-285-0087

Nelson Eddy Construction, Inc.

Nelson Eddy 25410 E State Route EE Harrisonville, MO 64701 816-260-2924 www.nelsoneddyconstruction.com

Rooted Landscape

Jon Johnson

201 W Dennis Ave. Olathe, KS 66061

913-782-1845 rootedland.com

Affiliate | Bell Bank

Jeff Schuler

11095 Metcalf Ave., Suite 1016 Overland Park, KS 66210

785-845-7967

Affiliate | Kansas City Homes & Style

Denice Belcher

11420 S Hunter Dr. Olathe, KS 66061 913-777-1017 www.homesandstylekc.com

KCHBA Member Referrals

Thank you to the following KCHBA members for referring new members to the association in April!

Todd Hill Todd Hill Homes

Jack Reilly Reilly Homes CBUSA

Casino Night Raises Over $3,000 for YP Education

The The Young Professionals (YPs) hosted their second annual “Casino Night Fundraiser” where members gathered for some healthy competition along with food, drinks and raffle prizes. Supporting future YP education initiatives and events, attendees had the opportunity to play Texas Hold ‘Em poker and Roulette.

There was a three-way split win for the poker tournament between Ben Hutchinson of Ferguson, Kevin Stallings of Dreams and Design Building, and Sean Flandermeyer of Elevate Design + Build.

Giveaways included a 65” TV, assorted liquor bottles, Top Golf gift cards and some YP swag. More than 60 KCHBA members attended.

THANK YOU to all our sponsors; we would not be able to host events like this without your participation!

CSW (Canaan Stone Works) – Presenting Sponsor

Modern Power – Drinks Sponsor

Nebraska Furniture Mart – Food Sponsor / Table Sponsor Bravas – Table Sponsor

Century Homes - Table Sponsor

Reilly Insurance - Table Sponsor

KCHBA Staff

Will Ruder

Executive Vice President will@kchba.org | 816-733-2216

Celia Byers Manager, Events & Partnerships celia@kchba.org | 816-733-2241

Sheryl Drane

Assistant to the Executive Vice President sheryl@kchba.org | 816-733-2221

Kari English

Vice President of Communications & Strategy kari@kchba.org | 816-733-2213

Marcia Jurgens

Vice President of Administration marcia@kchba.org | 816-733-2215

Paige Livingston

Director, Parade of Homes & Artisan Home Tour paige@kchba.org | 816-733-2217

Jordynn Webster

Director of Community Relations & Membership jordynn@kchba.org | 816-733-2218

The Official Publication of the Home Builders Association of Greater Kansas City

MAY 2024 | Volume 30 | Issue 4

Copyright 2024

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

Editor Kari English

Contributing Writer Paige Livingston Graphics Kelcee Allen, Kelcee Lynn Collective LLC

2024 Executive Committee

President Dennis Shriver

Vice President Justin Pfeifer

Executive Vice President Will Ruder

Secretary / Treasurer Joe Christensen

Immediate Past President Brian Tebbenkamp

Associate Representative Kevin Kirtley

Past President Representative Bruce Rieke

To subscribe to Building Business News call (816) 733-2217

To advertise in Building Business News call (816) 733-2213

For change of address requests please email Kari@kchba.org or call (816) 942-8800

For more information, visit KCHBA.org

Member Anniversaries

1973

Rensen House of Lights

1978

Complete Home Concepts, Inc.

Henges Insulation

1983

Bickimer Homes

1986

Geiger Ready Mix Co., Inc.

1989

Extraordinary Homes

1994

Hunt Midwest Real Estate Development, Inc.

1998

Pollard & Associates

1999

Freeman Custom Homes

2001

KC Pumpman, LLC

2003

Cecil & Ray Homes Inc

2009

Homoly Design + Build

Premier Foundations, LLC

Harrison Baker Insulation, LLC 2010

Bryant-Ratliff Building, Inc. 2011

Maples Construction Co. Inc

Kitchens & Baths by Briggs

SRS Design, LLC

2012

Ted’s Trash Service, Inc

Williams Insulation & Gutters, A TruTeam Company

2013

Arvest Bank

2014

High Definition Drywall

2015

31-W Insulation Company, Inc.

2016

Next to Nature Landscape, LLC

KC Lift & Elevator

Legacy Homes of KC

2017

CMP Construction

Reed Fuller Construction, Inc

2019

Foundation King 2020

Woodworth Law Firm

Luke Kush Corporation

2021

AEL, Inc. dba Access Elevator & Lifts, Inc.

LC Briggs Turf Farm, LLC

Briggs Traditional Turf Farm, Inc.

Extreme Builders

2022

Kansas Spray Foam Insulation LLC

Takeoff Drone Productions LLC

First Option Bank 2023

KC Custom Hardwoods

French Homes Inc

Urban Tile and Stone

2024 ELITE PARTNERS ELITE PARTNERS

DIAMOND

Mike Bryant Heating & Cooling

Ferguson

PLATINUM

First Federal Bank of KC

Kansas Gas Service

McCray Lumber

Nebraska Furniture Mart

SVB Wood Floors

GOLD

Bovard Insurance Group

Builders FirstSource

Capitol Federal

Fasone & Partners

Fidelity Bank

High Definition Drywall

K&E Flatwork

Kitchens & Baths by Briggs

Morgan-Wightman Supply Company

Northcraft Flooring & Design

Owen Lumber

Phelps Engineering

Rew Materials

Star Companies

Sun Lumber Company

United Heating, Cooling & Plumbing, Inc.

SILVER

Kenny’s Tile

Mead Lumber

North American Savings Bank (NASB)

Schlagel

Shamrock Cabinet

Spire

Wilson Lighting

BRONZE

Commerce Bank

Complete Home Concepts

Denizen

DesignKC/Real Estate Book & New Home Guide

Henges Insulation

Hermes Landscaping

Locks & Pulls

NBKC

Pella Products of Kansas City

ProSource

Raynor Garage Door

ReeceNichols

Rocktops Granite & Stone Fabrication

SAPPHIRE

Bank of Blue Valley

Canaan Stone Works (CSW)

CommunityAmerica Credit Union

First American Title

RoyCo Roofing

SCI (Surface Center Interiors)

2024 Q1 Permits Up Significantly from Last Year

Atotal of 1,036 single-family permits issued in the first quarter of 2024, up 49 percent from the same time in 2023 when only 696 single-family permits were issued, according to statistics compiled by the Home Builders Association of Greater Kansas City (KCHBA). Month to month, 398 permits were issued in March compared to 328 in February, a 21 percent increase.

The top five permitting cities in March were Lee’s Summit (44), Olathe (40), Kansas City, Mo., (38), Raymore (36) and Overland Park (30).

PERMIT REPORT

Residential Building Permit Statistics MARCH 2024

MARCH 2024

Comparison of Single Family Building Units for Greater Kansas City

^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units. # 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. Copyright 2024 Home Builders Assoc of Greater Kansas City. All rights reserved.

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

Upcoming Events

June 7

2024 KCHBA Golf Tournament Scramble

Hosted by Associates Council

June 11-14

NAHB Spring Leadership Meeting, Washington D.C.

June 27

Selling New Construction

Go to members.kchba.org/calendar for the most up to date event information and to register.