Chalkline Magazine Spring 2024

Table of Contents

2024 Board of Directors

OFFICERS

PRESIDENT

Andrew Wheeler, T. Wheeler Homes

VICE PRESIDENT

Jordan Schweiger, Good Well Construction

SECRETARY/TREASURER

Beth Rhoades, C & R Remodeling

ASSOCIATE VICE-PRESIDENT

David Qualls, Parr Lumber

IMMEDIATE PAST PRESIDENT

Oleg Foksha, Foksha Homes

FORMER PAST PRESIDENT

John Hammer, John Hammer Construction

Board Members

Adam Kelley, Neighborly Ventures

Connor Reiten, PNGC Power

Dale Kaufman, Kaufman Homes

Dan Reynolds, Saalfeld Griggs PC

Gavin Radigan, Radigan Remodeling

Jason Flores, Celtic Homes

Jed Bennett, Steve Bennett Construction

Jeff Reynolds, Home Fire Stove

Justen Maron, Olsen Communities

Kayla Van Lydegraf, The Fixture Gallery

Samantha Crabb, Cherry City Interiors & Design

Scott Kelly, Kelly’s Home Center

Association Staff page 12

Mike Erdmann, Chief Executive Officer mike@HomeBuildersAssociation.org

Haley Hamilton, Director of Shows & Events haley@HomeBuildersAssociation.org

Andrea Jenkins, Director of Member Services andrea@HomeBuildersAssociation.org

Brad Nanke, Director of Safety & Training brad@HomeBuildersAssociation.org

Tracy Mitchell, Contract Accountant accounting@HomeBuildersAssociation.org

Home Builders Association of Marion & Polk Counties 2075 Madrona Ave SE Suite 100, Salem, OR 97302 tel 503-399-1500 | fax 503-399-0651

www.HomeBuildersAssociation.org

5 12 16 18 22

Current News

2023 Residential Construction Market Recap

Housing Campaign Continues

Legislature pours in more money, adds rules in an effort to boost supply.

Member Spotlight

Santiago Sarmiento of Sarmiento’s LLC

Safety Update

Noise Exposure

Vital Statistics

The Home Builders Association of Marion & Polk Counties association of building industry professionals committed to supporting our members. We advocate for balanced, efficient, and responsible development while promoting the social and economic values of homeownership in our community.

Welcome

Hello everyone! I hope you’ve all had a great, fresh start to 2024! As we get into this new year, we have a bunch of upcoming events for all our members. We started the new year off with a bang with our first annual Pub Crawl downtown visiting three local bars. It was a very fun event and I would like to thank all of the sponsors and members who joined that night.

This past month, in late February, a lot of members and myself went to Las Vegas for the NAHB International Builder’s Show. This year’s convention was another attendance breaking event with over 110,000 people present. If you’ve never attended this convention, I would highly recommend it as you get to see the latest and greatest building materials coming to the market, partake in amazing educational classes in various categories, and get to walk through a beautiful all-American product home. Every year I attend it amazes me more and more how many people are actually working behind the scenes that the average individual doesn’t ever realize. These people are on the ground working with local and national governments trying to keep building moving forward even though there are many obstacles to maneuver around and hoops to jump through. When you get more involved with the HBA, like I have, you really get to see some of the behind the curtain work and realize all the great contributions our NAHB is doing for our state and the rest of the country.

Speaking of working together as an association, we have selected a builder and building lot for this year’s 2024 PAC house. The house is off to a great start and I’m sure our builder, Andre Makarenko, of Comfort Homes, LLC, will have it all well finished by the July 13th deadline. I would like to personally thank all of the members that are involved in donating their time and materials to this year’s PAC house. In this early stage of the build, if there are any members that would like to donate their efforts, please reach out to the HBA.

As we start making our way into the spring and better weather approaches, we will be bringing back some Off the Clock meetings. These are great meetings to attend at some of our local associate buildings/offices. I encourage you to look up the new event calendar we have this year. Go online to the HBA website: www.homebuildersassociation.org or contact Haley Hamilton, Director of Events, at 503-399-1500.

Sincerely,

Andrew Wheeler

2024 HBA President

New Home Starts

2023 Residential Construction Market Recap

New Home Starts

The Salem MSA (Marion and Polk counties) saw 1002 new starts of single-family homes, duplexes, triplexes and ADUs in 2023, the same level of production as the prior year. While the number of starts remained constant, the market saw a shift in the type of product being constructed, with a 9% decline in single-family building and an increase in the construction of ADUs and duplexes. ADUs represented 16% of Salem’s housing starts, and 8% of the starts across Marion & Polk counties. For comparison, ADUs represented less than 4% of Salem’s starts in 2022. 2023 saw a doubling in the number of duplex units built vs. the prior year, though most duplex construction was outside of Salem in surrounding communities where lots are more affordable.

New Home Sales

The Salem MSA (Marion and Polk counties) saw 1002 new starts of single-family homes, duplexes, triplexes and ADUs in 2023, the same level of production as the prior year. While the number of starts remained constant, the market saw a shift in the type of product being constructed, with a 9% decline in single-family building and an increase in the construction of ADUs and duplexes. ADUs represented 16% of Salem’s housing starts, and 8% of the starts across Marion & Polk counties. For comparison, ADUs represented less than 4% of Salem’s starts in 2022. 2023 saw a doubling in the number of duplex units built vs. the prior year, though most duplex construction was outside of Salem in surrounding communities where lots are more affordable. 19951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023

New Home Sales

Sales of newly built homes were down 8% in 2023, mirroring the decline in single-family housing starts. This represents a 34% drop from just three years ago, and is less than half the number of sales during the housing boom in the mid-2000s. As with the existing resale market, rising mortgage interest rates that pushed as high as 8% in October dampened sales of new homes.

Inventory

Pricing

Sales of newly built homes were down 8% in 2023, mirroring the decline in single-family housing starts. This represents a 34% drop from just three years ago, and is less than half the number of sales during the housing boom in the mid-2000s. As with the existing resale market, rising mortgage interest rates that pushed as high as 8% in October dampened sales of new homes.

Inventory

homes if land was more readily available. While the inventory of existing homes for resale has been held back by home owners reluctant to give up record low mortgage rates, the new construction market is largely held back by the unavailability of building lots.

Multiple Listing. With 6 months of inventory generally considered a balanced market between buyers and sellers, our low inventory levels are a strong indicator that the industry is not overbuilding, and in fact could likely build and sell additional homes if land was more readily available. While the inventory of existing homes for resale has been held back by home owners reluctant to give up record low mortgage rates, the new construction market is largely held back by the unavailability of building lots.

Pricing

The inventory of newly constructed homes currently listed for-sale remains at low levels. Currently, only 3.5 months of new construction inventory is listed with Willamette Valley

The inventory of newly constructed homes currently listed for-sale remains at low levels. Currently, only 3.5 months of new construction inventory is listed with Willamette Valley Multiple Listing. With 6 months of inventory generally considered a balanced market between buyers and sellers, our low inventory levels are a strong indicator that the industry is not overbuilding, and in fact could likely build and sell additional

While the average sales price for new construction has declined to $504,000 in 2023 from $521,000 in 2022, this is the result of newly constructed homes being significantly smaller than the prior year. Faced with prospective buyer’s declining buying power caused by higher mortgage interest rates, builders are constructing smaller homes to help combat declining affordability. Homes selling at the end of last year were a full 130 square feet smaller than those sold at the start of the year. While sales prices were down, prices per square foot actually rose to an average of $276 per square foot in 2023, an increase from 2022’s $264 per foot.

Average New Home Size and Sales Price

While the average sales price for new construction has declined to $504,000 in 2023 from $521,000 in 2022, this is the result of newly constructed homes being significantly smaller than the prior year. Faced with prospective buyer’s declining buying power caused by higher mortgage interest rates, builders are constructing smaller homes to help combat declining affordability. Homes selling at the end of last year were a full 130 square feet smaller than those sold at the start of the year. While sales prices were down, prices per square foot actually rose to an average of $276 per square foot in 2023, an increase from 2022’s $264 per foot.

Affordability

The region’s housing affordability continues to worsen, as the cost of producing housing is plagued by ever-increasing regulatory costs, challenges and delays which significantly drive up development costs and serve to discourage future land development. As of the third quarter of 2023, Salem’s housing affordability ranked 221st out of 241 housing markets nationally, with only 12% of homes affordable for a family earning the region’s median income. This is a dramatic decline, as Salem has gone from one of the most affordable markets in the country to one of the least affordable in the past twenty years.

Continued on page 20

Affordability

The region’s housing affordability continues to worsen, as the cost of producing housing is plagued by ever-increasing regulatory costs, challenges and delays which significantly drive up development costs and serve to discourage future land

April

April 23rd - Off the Clock at Kelly’s Home Center

The time of Off the clock at 5:30-7:30pm.

Register online at  www.homebuildersassociation.org

May

May 21st - Member Dinner

Salem Convention Center

Doors open at 5:30. Dinner at 6pm Register online at www.homebuildersassociation.org

June

June 20th

Off the Clock at Saalfeld-Griggs

The time of Off the clock at 4:30pm-6:30pm. Register online at  www.homebuildersassociation.org

®

Precision-cut, labeled, & bundled framing packs by PARR

Members

Take advantage of these exclusive member discounts. Contact the HBA for information on how to enroll.

Substantial member discounts on health insurance with Regence BlueCross BlueShield of Oregon through the HBA’s Building Industry Insurance Trust.

Last year, members saw average savings of 42 cents per gallon on unleaded gas and 57 cents per gallon on diesel in the HBA’s fuel discount program with Ed Staub Petroleum.

Welcome New & Renewing Members Thank you!

Advantage Mortgage, Inc

Jordan Kevk 541-270-4094

AEC Construction

Nathan Brush (503) 302-1624

AgWest Farm Credit

Erica Bennett (503) 985-2300

Army of One Landscape and Excavation LLC

Paul Sever (971) 304-5696

Bybee and Associates, Inc.

Mark Bybee (503) 581-6884

Cascade Iron Co.

Seth Joyce (971) 772-0915

Christmas Light Guys

Matt Brozovich (971) 353-5300

Creative Concepts Home Staging

Rachel Latham (503) 949-4140

D Price Customs LLC

Danny Price (503) 583-4043

Eco-Pan Inc

John Baumstarck (971) 990-3338

EG Drywall LLC

Jacob Gonzalez (503)576-0406

Elvis’’s Custom Painting LLC

Elvis Alvarez (503) 269-1768

Environmental Testing & Training

Northwest

Josh Samter (971) 303-8378

Envision Landscape & Hardscape LLC

Julio Jacobo 503-898-2473

Evergreen Home Loans

Jim Hungerford (971) 226-8403

Evergreen Home Loans

Tyler McMahon (877) 242-2014

GR4 General Contractor

Guillermo Gutierrez (503) 385-7764

I & T Construction LLC.

Juan Plata-Gutierrez (503) 868-9956

I. A. Customs LLC

Members in the HBA’s group workers compensation program with SAIF Corporation gets exclusive member discounts and customized safety and loss control consultation.

Ivan Avdeyev (503) 800-8181

Infinity Project Solutions LLC

Derusha Vela (541) 908-2527

Keeping Up With the Jones Landscaping

Joseph Berrien (503) 508-2608

Mann Mortgage

Aaron VanCleave (503) 910-2457

McGraw Enterprises LLC

Tracy Bloemer (503) 828-0300

Natural Touch Painting

Tony Bodunov (503) 507-6124

Northwestern MutualJared A. Virtue

Jared Virtue 503-798-9262-1040

NW Natural

Zachary Sielicky (503) 871-9732

Oregon Tile and Design

Tim Korchagin (503) 871-0608

Radigian Remodeling & Design

Misti Miller (503) 991-5103

RC Painting Premium LLC

Roberto Corral (503) 868-8425

Schwab Residential Construction

Nathaniel Schwab (971) 915-3850

Servpro of Salem West

Jenn Benavidez (541) 243-3193

Sherman, Sherman, Johnnie & Hoyt

Haley Bell (503) 364-2281

Solid Rock Legacy

Jason Leon (503) 851-7138

Solid Roofing NW

Sara Klindtworth (503) 949-5093

Vik’s Home improvements

Viktor Titarenko (503) 884-2803

Weyerhaeuser Distribution

Thomas Moran (541) 223-1288

Who Owns You?

New Rules Require You to Report Your Business’ Ownership Information to the Federal Government

A few of us attending educational seminars at the recent International Builders Show in Las

Vegas got an eye-opening presentation on a new federal requirement that will require most small businesses to report ownership information of your business to the federal government, and face some pretty severe penalties if you fail to do so.

Thanks to a passed by Congress in 2021, most small businesses will be required to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) to identify those who directly or indirectly own or control the company. Companies created before January 1st of 2024 have until January 1st of 2025 to file this report with FinCEN, while companies created in 2024 have 90 days from creation or registration of the company to file its initial report. Companies created or registered on or after January 1st of 2025 have 30 calendar days to file. Companies that fail to file are subject to a $500 per day penalty, up to a maximum of $10,000.

The National Defense Authorization Act for Fiscal Year 2021 enacted the Corporate Transparency Act (CTA) to require America’s small and independent businesses to file beneficial ownership information with FinCEN. The CTA helps the U.S. government identify money laundering, corruption, tax evasion, drug trafficking, fraud and other crimes. Congress passed the CTA to make it harder for these illegal activities and their perpetrators to hide from law enforcement officials. Detailed information is available at fincen.gov/boi.

Which entities are required to report their beneficial owners?

The reporting requirements generally are applicable to corporations, limited liability companies (LLCs) and other similar entities that are created by the filing of a document with a secretary of state or a similar office.

Additionally, a reporting company is a corporation, LLC or other similar entity that:

1. has 20 or fewer full-time employees; or

2. filed Federal Income Taxes in the previous year demonstrating $5 million or less in gross receipts or sales; and

3. do not otherwise qualify as an exempted entity as described in the regulations.

Which entities are exempt from reporting beneficial ownership?

There are 23 types of entities exempt from the beneficial ownership reporting requirements. These entities include publicly traded companies meeting specified requirements, many nonprofits, certain large operating companies, insurance companies, accounting firms, state-licensed insurance producers, and many financial service companies such as banks and credit unions, securities dealers and investment advisors. A complete list of exemptions can be found at https://www.fincen.gov/boi-faqs#C_2

What information is a reporting company required to provide to FinCEN?

A reporting company is required to provide specific information on the company itself, its beneficial owners, and the company applicant.

Reporting Company Information

The reporting company will need to submit the following information:

• Legal Name and DBA or other trade name under which it may do business

• Address of its principal place of business

• Jurisdiction in which it was formed or first registered, depending on whether it is a U.S. or foreign company

• Taxpayer Identification Number

Beneficial Owner Information

The beneficial owner is any individual who exercises substantial control over the reporting company or who owns or controls at least 25% of the reporting company.

• Legal name

• Birthdate

• Address (In most cases a home address)

• An identifying number from a driver’s license, passport or other approved document – along with an image of the document

Company Applicant Information

The company applicant is an individual who files the document that creates or registers the company. There may be up to two company applicants: 1) the individual who files the document that creates or first registers the reporting company, and 2)

if there is a second individual involved in the filing of the document, the individual who is primarily responsible for directing or controlling that filing.

• Legal name

• Birthdate

• Address (In most cases a home address)

• An identifying number from a driver’s license, passport or other approved document – along with an image of the document

A company applicant does not need to be identified or reported if the company was registered or created before Jan. 1, 2024.

When do these requirements go into effect?

A reporting company created before Jan. 1, 2024 has until Jan. 1, 2025 to file its initial report with FinCEN.

If a reporting company is created in 2024, it has 90 days after receiving notice of its creation or registration to file its initial report.

Reporting companies created or registered on or after Jan. 1, 2025, will have 30 calendar days to file their initial beneficial ownership information reports after receiving actual or public notice of their creation or registration becoming effective.

There is no requirement for a reporting company to annually report beneficial ownership information. All reporting companies will be required to update and correct reports as necessary within 30 days of a change or when the company becomes aware of an error or inaccuracy.

How are the reports filed?

Your report will need to be filed electronically through FinCEN’s E-Filing website at https://boiefiling.fincen.gov

Who has access to FinCEN’s database?

There are strict rules for who is authorized to access the beneficial ownership information in the database. FinCEN will permit federal, state, local and Tribal officials, as well as certain foreign officials, to submit a request for access to the information for purposes of activities related to national security, intelligence and law enforcement purposes. Financial institutions and their regulators also will have access to the information in certain circumstances with the permission of the reporting company.

What happens if I don’t file?

Failure to comply with the reporting requirements can result in civil penalties up to $500 per day, up to a $10,000, and/or up to two years in prison.

Building relationships that last…

We offer specialized builder and developer services for every phase of your project from land searches and acquisition to the celebration on closing day. Local Knowledge. Regional Leader. World-Class Service.

HOUSING

CONTINUES Legislature pours adds rules in effort

by James Day

The battle to solve housing problems continues in Oregon. And continues.

The Oregon Legislature, at its just-concluded 35-day short session, spent a big chunk of that time on housing, coming away with a pair of bills that promise to alter the status quo for builders, home buyers and cities in really fundamental ways, with the impacts not likely to be known for decades.

Senate Bill 1530 (the policy bill) and Senate Bill 1537 (the budget bill) both ultimately passed the Legislature easily but not without amendments. Gov. Tina Kotek originally asked for a $500 million package. Instead, lawmakers came up with $376 million in new spending.

“Oregonians are struggling under the pressure of an increasingly unaffordable housing market,” said Kotek in a statement released by her office. “After hearing this concern directly from Oregonians from across our state last year, I knew we had to make major progress on our housing crisis during this year’s legislative session. I want to thank legislators for meeting the urgency of this moment and providing much-needed funding that will boost housing production throughout the state.

“These bills offer a menu of tools that will provide the support needed to ease our housing crisis and help all our communities thrive. I believe this package will make meaningful progress in fixing our housing shortage while also preserving our land-use system and ensuring strong environmental protections. But this is not the finish line. We have more work ahead to solve our housing and homelessness crises – and I will keep pushing for more because the need is so great. Oregonians are counting on us to deliver.”

CAMPAIGN CONTINUES

supply

When Kotek took office in January, 2023, she set a goal of building 36,000 homes per year and continuing to work to produce the 440,000 units in the next 20 years that housing officials say is needed to meet the demand.

Here is a look at the big ticket items that the $376 million will pay for:

• A $94 million appropriation for infrastructure that supports 44 projects statewide

• A $75 million revolving loan fund for moderate-income housing units

• $65 million for emergency shelters and hotel/motel conversion projects

• $29 million to three agencies to develop affordable housing, including $25 million for the Albina Vision project in Portland.

• $24.5 million for grants for “healthy and safe homes” that feature energy-efficiency

• $18 million for 27 “recovery housing” projects for those in recovery from drugs and alcohol

Updating the UGB rules

But it’s more than just the money being spent that makes these bills potential game-changers for housing in Oregon and the building industry. The legislation also tweaks long-standing Oregon the rules on where housing can be built and also mandates how much of it must qualify as affordable.

The bills also would allow qualifying cities a one-time expansion of their urban growth boundary. Cities with less than 25,000 people (such as Silverton, Dallas, Monmouth, Independence and Stayton) would be able to expand by 50

Continued on next page

A key piece of the new housing legislation allows cities to enact a one-time expansion of their urban growth boundary. UGB rules are designed to protect farm land.

In this photo near Cordon Road east of Salem a housing development sits near the current UGB. Photo Steve Beckner pours more money, effort to boost

The second phase of Mahonia Crossing is underway in South Salem. Phase II includes future homes for almost 300 households. The complex will have services on-site for those living at or below 30% to 60% area median income, seniors, agricultural workers, wildfire survivors and families of all sizes. Photo Ashley Russell

continued from previous page

acres and cities above that threshold (such as Salem, Woodburn, Keizer and McMinnville) could expand by 100 acres, as long as the city does not have within their UGB an undeveloped, contiguous parcel larger than 20 acres zoned for residential use. The cap is 300 acres in the Portland metro area. Thirty percent of housing in any expanded area would be required to be affordable housing.

The urban growth boundary (UGB) concept was a critical component of Senate Bill 100, which codified Oregon’s unique land-use system in 1973, with a key goal being the preservation of land for agricultural use. Making it harder to change the zoning of land from farm use to housing was seen as a way to prevent sprawl and preserve Oregon’s rural character.

In a legislative package that includes quite a few unknowns, this piece could wind up settling in a number of different ways, says Jodi Hack, chief executive officer of the Oregon Home Builders Association.

“Until we see how many cities and landowners take advantage of the expansion, we don’t know how significant this section will prove to be,” said Hack, a former state Rep. in District 19 in Marion County. “Changes included needs triggers that require cities to meet certain criteria before they are eligible and those will play a factor in how many cities will qualify for the expansion. Increased density levels required will also be a factor.

“We are hopeful that enough cities and landowners will use the expansion that we’ll be able to show increased numbers of units moving forward. One significant item we did negotiate

for in the last days was a budget note requiring the Housing Accountability and Production Office (working with stakeholders and local jurisdictions) to report back to the Legislature on the impacts of the UGB expansion section and whether or not it has increased production and if it has not give specific reasons why so they can be addressed.”

Also important, said Hack, is what the mandatory affordable housing piece of the UGB puzzle might ultimately look like.

“For example,” she said, “does the community need workforce/ middle income housing (for homebuyers earning 130% of the average median income) or do they need rentals (at 80% of the average median income) or maybe they need a combination of both. It’s up to the developer and the local jurisdiction to decide what best fits the needs of the community and the project.

“Some builders/developers will build the affordable units themselves and some will need to partner with affordable housing providers - we don’t know what we don’t know yet about what those challenges might look like.”

Natalie Janney, a vice president at the MultiTech Engineering office in Salem, cautions that there is more to affordability than the price of the home or the rent that can be charged.

“The challenge with affordability requirements is the costs for development are the same, regardless of the sale/rent price of the unit,” said Janney. “For example, the costs of utilities, roadway improvements, and offsite improvements are the

same if an 800-square- foot unit or a 2,000-square-foot house are built. But deed-restricted affordable units may not allow for those costs to be recovered. At the end of the day, it will take having the right combination of land, a willing jurisdiction, financial incentives, and the correct developer to make it pencil.”

Accountability office

Janney served for the past year on a Housing Production Advisory Council set up by Governor Kotek and said that “there are several parts of the bill that resemble recommendations discussed on the council.”

The legislation calls for the creation of a new panel called the Housing Accountability and Production office. The new group will provide cities and housing developers with a number of tools to streamline the development process. For example, the office will produce ready-to-build plans and model codes to expedite development. The office also will ensure that the state’s housing laws are being followed by offering a voluntary process to address complaints, concerns, and issues from local governments and developers about compliance with state housing laws.

“From my perspective, the creation of the Housing Accountability and Production Office has the ability to provide the greatest impact,” Janney said.  “This office is modeled off a similar (one) in California that has been helpful for builders and developers.  Currently, if there are jurisdictions that aren’t following state laws or are adopting policies that create barriers

to housing production, developers are left with little opportunities for resolving these issues.

“Often, the only recourse is litigation, which costs tens of thousands of dollars and takes months (or years) to finally get resolved.  The HAPO would provide builders (with) a dedicated agency narrowly focused on enforcement of housing laws and mediation services to help resolve issues that may be impacting individual projects or housing jurisdiction wide.”

The HBA’s Hack was asked about what the future holds amid the Legislature’s continued work on housing.

“We didn’t get into this crisis overnight and we’re not going to get out of it that way either,” Hack said. This legislation … is a start and a step in the right direction, but our work is not over. We need to come back in 2025 ready to address issues around process, barriers and other areas that have contributed to the housing crisis.

“Some legislators really struggled with meeting the demands of the environmental community and meeting the needs for housing Oregonians.  And some legislators in their desire to support farmers struggled to understand that we aren’t taking high value farm land or land that hasn’t already been designated (as) urban reserves. While you might think housing Oregonians shouldn’t be a tough vote - sometimes it proves to be just that. Housing bills are not easy to pass. Our land use laws are extremely complicated and don’t make it easy.”

WHAT’S IN THE BILLS

Here is a look at some of the major pieces of Senate Bills 1530 and 1537:

• Requires the Department of Land Conservation and Development (DLCD) and the Department of Consumer and Business Services to jointly establish and administer the Housing Accountability and Production Office (HAPO). Requires the office to assist local governments and housing developers with housing laws.

• Authorizes the office to take action to enforce housing laws.

• Allows a housing developer with a pending application to opt in to amended local land use regulations.

• Expands eligibility for attorney fees on appeal of the approval of a residential development proposal to include local governments and all affordable housing or housing within urban growth boundaries.

• Creates a fund to allow the Oregon Business Development Department to provide capacity and support to local governments in developing infrastructure to support residential development.

• Requires the DLCD to biennially report to the Legislative Assembly before 2025 on proposed infrastructure projects that may support residential development.

• Authorizes cities and counties to adopt a program for awarding grants to developers of affordable housing and moderate income housing projects to finance certain costs associated with such housing projects. Directs the Housing and Community Services Department (OHCS) to develop a revolving loan program to make interest-free loans to participating cities and counties to fund the grants.

• Develops alternative processes to amend urban growth boundaries to include up to 100 net residential acres per city. Provides for limitations and review by counties, Metro and the (DLCD) and the courts.

Member Spotlight

Santiago Sarmiento

Age: 44

Residence: Salem

Hometown: Veracruz, Mexico

Education: “My education background consists of hands- on trade training and continuous learning through specialized training programs.”

Family: wife, Maribel Sarmiento; sons Santi and Mateo; and dog Kike

Career stops:

Various small construction jobs.

Hobbies: Golfing, camping and watching a lot of tournament baseball (both boys play)

Business is a family affair for Santiago Sarmiento, who operates Sarmiento’s LLC in Keizer. The company, which has been in business since 2015, specializes in roofs, garage doors, overhead doors and gutters.

“Sarmiento’s is a family-run and operated business,” Sarmiento told Chalkline. “My wife deals with HR related work. My brother-in-law is our office manager. And my two brothers are out in the field.”

The field means dispatching his 22 employees up and down the Interstate-5 corridor as well as to the Oregon Coast and Central Oregon or “basically wherever our builders go.”

Sarmiento got his start working small construction jobs but had to start over when the Great Recession hit and he found himself out of work.

“When the company I was employed with closed during the 2008 recession, two colleagues and I purchased equipment from them and launched our own business,” Sarmiento said. “It was a very hard time to start a business. We knocked on a lot of doors looking for work. In 2015, with the support of my family, I decided to start Sarmiento’s, a roofing and garage door business.”

Sarmiento, who keeps moving forward via hands-on learning and specialized training programs, has been a member of the Home Builders Association of Marion & Polk Counties since he first picked up stakes and started his own company.

“I have been with HBA since 2008,” Sarmiento said. “I noticed that many of the builders I was working for were HBA members, all really nice guys. I wanted to connect and collaborate with more great builders in the community. I checked them out and here we are.”

Sarmiento served as vice-president of the board during 2022 and his colleagues honored him as the Home Builders Association of Marion & Polk Counties Associate of the Year for 2023. Sarmiento was honored Dec. 13 at the Association’s annual holiday and installation banquet at the Salem Convention Center.

The nomination papers for the annual award noted that Sarmiento “has been actively engaged in industry and community initiatives. Notably, he played a crucial role in the HBA’s New Product House project, which showcases innovation in homebuilding and raises funds for industry-related political action.”

Sarmiento also donated his services to a house built each year by Advanced Construction Education, a non-profit that provides

Santiago Sarmiento in his Keizer office. Sarmiento started his roofing, garage/ overhead doors and gutter firm in 2015. Photo Sarmiento’s LLC

high school students with hands-on experience in home design, construction, and sales.

Outside the workplace, Santiago has given back to the community by offering discounted services to La Casa, a local non-profit providing housing for low-income individuals. He also assists elderly, low-income seniors in ensuring their homes are safe and comfortable.

Sarmiento lists four key benefits he derives from his involvement with the Home Builders Association:

“The connection opportunities to professionals in the community. The access and resources to information related to the industry (they keep you updated). The support and representation on issues that affect the home building industry. And the visibility and credibility within the community.”

The hexagonal grid used in honeycomb is the most efficient way to cover an area with minimal circumference or boundary. Charles Darwin described it as a masterpiece of engineering, “absolutely perfect in economizing labor and wax.” The use of this shape reflects Hagan Hamilton’s ongoing commitment to proficiency and resourcefulness.

Much like a beehive, Hagan Hamilton is a humming, thriving community in which everyone plays a distinct role but is united in shared purpose. We are industrious, but also operate as a family — working toward something greater than ourselves.

Call us at 503-344-1300.

Photo Sarmiento’s LLC

Safety Update

Noise Exposure

A hearing conservation program

Employers must have an effective hearing conservation program whenever employee noise exposures equal or exceed an 8-hour time weighted average (TWA-8) of 85 decibels measured on the A-scale (dBA). This 85 dBA action level corresponds to a dose of noise that is 50 percent of the permissible exposure limit (PEL) TWA-8 of 90 dBA. There are five basic components to an effective hearing conservation program:

• Noise exposure monitoring

• Audiometric testing

• Hearing protection

• Recordkeeping

• Employee training

Noise exposure monitoring

Conduct monitoring to determine if employees are exposed to noise exceeding the 85 dBA action level. Noise dosimetry is a method used to measure individual noise exposure. While not all employees need to be monitored, noise dosimetry must represent each affected employee’s job or activities. Notify all affected employees of monitoring results that exceed the action level. These employees must be included in your hearing conservation program.

If noise levels exceed TWA-8 of 90 dBA, you must use all feasible engineering, administrative, or work-practice controls to reduce the noise exposure to or below the PEL. If these controls are insufficient to reduce exposure below the PEL, then you must provide personal protective equipment along with other controls to reduce exposures to the lowest achievable level.

Audiometric testing

Brad Nanke HBA Director of Safety and Training

A licensed or certified audiologist, otolaryngologist, other physician, or a technician who is certified by the Council for Accreditation in Occupational Hearing Conservation must perform and evaluate annual testing for all employee exposures over 85 dBA.

Standard threshold shift

A standard threshold shift is a significant change or loss in hearing compared to the baseline in either ear. Employees who show a standard threshold shift and are exposed to a TWA-8 of 85 dBA or above must wear hearing protectors on the job.

Follow‑up procedures

If any audiogram shows a standard threshold shift, notify the employee in writing within 21 days of receiving the report and record the results on your OSHA 300 Log. Employees with a documented hearing loss must be fitted with hearing protectors, trained in their use and care, and required to use them. Employees who were already using hearing protectors must be refitted and retrained. Some employees may need to be referred to a qualified specialist for additional evaluation.

Recordkeeping

Maintain all records, including employee exposure measurements and audiograms.

Employee training

Train all employees in your hearing conservation program annually. Include the following information:

1. Effects of noise on hearing

2. Purpose of hearing protection

3. Advantages and disadvantages of various types of hearing protection

4. Selection, use, and care of hearing protection

5. Purpose of annual audiometric testing

Provide the applicable Occupational Noise Exposure rule to employees and their representatives upon request.

Contact Brad Nanke at brad@homebuildersassociation.org or at 503-990-9216 if you have questions or concerns.

Credit to OR-OSHA for some source content.

Continued from page 5

Multifamily

Construction of new multifamily housing was down significantly in 2023 as multifamily developers ran up against higher borrowing costs and difficulties in obtaining financing.

Salem saw 330 new multifamily units permitted, with Woodburn permitting 414 units and another 220 units elsewhere in Marion & Polk counties. These combined 964 units were half the number of multifamily units built in 2022, but still higher than any other year since 1996. Multifamily development is expected to further weaken in 2024 due to the aforementioned financing challenges.

Land Development

Multifamily

Very little subdivision development activity took place in 2023, with Salem seeing only two applications for new subdivisions. Devon Heights, a 6.6 acre, 48 lot subdivision on the hill just south of Creekside Golf Club was applied for by local developer Sam Lapray.

Rd and Hayesville Dr. This 11 acre project includes 38 singlefamily lots and 54 townhome lots.

Construction of new multifamily housing was down significantly in 2023 as multifamily developers ran up against higher borrowing costs and difficulties in obtaining financing. Salem saw 330 new multifamily units permitted, with Woodburn permitting 414 units and another 220 units elsewhere in Marion & Polk counties. These combined 964 units were half the number of multifamily units built in 2022, but still higher than any other year since 1996. Multifamily development is expected to further weaken in 2024 due to the aforementioned financing challenges.

The other Salem subdivision application was for the Morgan Meadows subdivision in East Salem at the SW corner of Cordon

Land Development

Residential land development activity is expected to remain slow throughout 2024 with high borrowing costs and the challenges associated with delivering lots at a price point that can be absorbed by a housing market clearly weighted towards smaller, less expensive homes.

Very little subdivision development activity took place in 2023, with Salem seeing only two applications for new subdivisions. Devon Heights, a 6.6 acre, 48 lot subdivision on the hill just south of Creekside Golf Club was applied for by local developer Sam Lapray.

The other Salem subdivision application was for the Morgan Meadows subdivision in East Salem at the SW corner of Cordon Rd and Hayesville Dr. This 11 acre project includes 38 single-family lots and 54 townhome lots.

Residential land development activity is expected to remain slow throughout 2024 with high borrowing costs and the challenges associated with delivering lots at a price point that can be absorbed by a housing market clearly weighted towards smaller, less expensive homes.

Vital Statistics

Sold Units — 12 Months to Date

Months of Inventory on Market

David White 503-269-2657

Dawn Bostwick 503-480-8733