Chalkline Spring 2017

The

SPRING 2017

The Official Publication of the Home Builders Association of Marion & Polk Counties

Face to Face The benefits of trade shows

It Feels Like a New Season �������������������������������������������������� 5 HBA New Product House ���������������������������������������������������� 9 Changes in Injury Reporting Rules �������������������������������13

CONTENTS / MEMBERSHIP & BOARD

2017 Board of Directors

Contents

OFFICERS PRESIDENT

Kent Kaufman, Kaufman Homes, Inc. VICE PRESIDENT

Matt Holstege, MC Northwest SECRETARY/TREASURER

Mike Riddle, Mike Riddle Construction, LLC ASSOCIATE VICE-PRESIDENT

Scott Woodward, Woodward Heating, Inc. IMMEDIATE PAST PRESIDENT

Phil Klaus, Spectra Construction FORMER PAST PRESIDENT

Rob Rardin, Weigel Homes

The Spike Club is an exclusive group of members who contribute to the growth of the association by recruiting and retaining members. Spikes maintain a special status, have the respect of their peers as valued members of the HBA and are recognized for their efforts locally and nationally.

To become a Spike, bring in six members to the HBA. Applications for prospective members may be obtained from the HBA office, or call to have one sent to the prospective member.

ALL TIME BIG SPIKE 1500+ John Gooley 2103

STATESMAN SPIKE 500+

President’s Message ���������������������������������������� 5 Mid-Valley Home Show ���������������������������������� 6 HBA New Product House �������������������������������� 9 Top Challenges for Builders ���������������������������� 14

HBA News Safety Update ��������������������������������������������10 Codes Update ������������������������������������������� 20

OHBA News Buzz about Net Zero Energy Homes ��������� 12 State Association Update �������������������������� 18 Vital Statistics ���������������������������������������������������� 21

Ric McNall 790

BOARD MEMBERS Rod Ashford, Ashford Homes Tim Mametieff, New Crossing Homes, LLC Jason Sawyers, Randy Fultz Custom Homes, LLC Rich Tovar, Wind River Homes Nate Scharer, Northside Electric Trever Pfeifer, Pfeifer Roofing Alan Sorem, Saalfeld Griggs, PC Brett Tallan, M.J. Tallan Construction Jayson Valech, Artisan Custom Homes Phil Fitzner, Power Auto Group Michael Poissant, AKS Engineering & Forestry Marilyn Jones, Consolidated Supply

Association Staff Mike Erdmann, Chief Executive Officer mike@HomeBuildersAssociation.org

Jeni Huntington, Director of Events jhuntington@HomeBuildersAssociation.org

Carrie Daye, Director of Member Services carrie@HomeBuildersAssociation.org

Shannon Baughman, Administrative Assistant shannon@HomeBuildersAssociation.org

David Davidson, Safety Management Consultant david@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

The Chalkline is published by the HBA and Mt. Angel Publishing, Inc. Designer: Steve Beckner To advertise, call 541-944-2820 or email jerry.s@mtangelpub.com.

www.HomeBuildersAssociation.org

SUPER SPIKE 250–499 Mike Smith 426 Rick Massey 414 Tim Mametieff 404 John Mills 370 Mike Meaghers 365

Dan Dorn 352 Dean Kaufman 304 Jeffrey Green 293 Chuck Foster 258

ROYAL SPIKE 150–249 Jubal Frost 242 Steve Johnson 224 Don Druliner 199

Tom Wheeler 172 Ken Hannegan 154 Rick Ziebell 154

RED SPIKE 100–149 Randy Fultz 144 Kelvin Dettwyler 141

Rob Rardin 116

GREEN SPIKE 50–99 Jerry Page 95 John Hammer 92 Rich Kansky 79 Larry Bilyeu 75 Mike Riddle 71 Bob Cavell 65

Dennis Downey 64 George Suniga 64 Matt Endler 59 Mike Smith 56 Jeannette Moore 54 Eric Olsen 53

LIFE SPIKE 25–49 Kerry Kuenzi 47 Steve Herr 46 Brad Moore 46 Kent Kaufman 46 Chris Pfeifer 42 Patrick Jackson 42 Jim Hobbs 40 Randy Melton 40 Ryan Bloedel 39

Don Sturgeon 38 Serge Serdsev 36 Tim Youngkin 34 Tim Kelsh 34 Eric Templeton 31 Rich Fry 26 Matt Holstege 26 David Hafner 25

BLUE SPIKE 6–24 Rich Clausen 23 Laura Dorn 21 Mark Shipman 21 Kraig Kelly 20 Kevin Stone 20 Jason Robertson 19 Randy Reeves 19 Peter Strauhal 19 Robert Kleinke 17 Hunter Emerick 17 Caleb Remington 17 Kimberly Hosmer 14 Don Lulay 12

Philip Pahlisch 11 Ricky Fast 10 Brent Pence 10 Jim Sparkman 8 Mark Wulf 8 Tim Roth 8 Gary Epping 8 Mike Giles 8 Steve Hurley 8 Alan Wilding 7 Chris Rasmussen 6 Nigel Guisinger 6

New & Reinstated Members All Electric Monte Baker (503) 851-1704 Spike: Jeff Green Bella Pietra Melissa Bravo (503) 991-5024 Spike: Rob Rardin Builder’s Design Brandon Yoder (503) 341-4568 HomeSmart Realty Group Bridget Welborn (503) 510-6580 Spike: Kimberly Hosmer Landmark Professional Mortgage Traci Benjamin (503) 385-4004 Spike: David Hafner Oswego Roofing Terrilynn Allworth Roshay (503)636-7663 Valley Credit Union Renee Gehring (503) 364-7999 Spike: Bonique Hollinrake

Dropped Members Do you know or do business with any former members of the association? If so, give them a call and encourage them to maintain their HBA membership. You’ll get a Spike Credit, plus help keep the association strong.

Barkas Construction Alex Barkas (503) 932-2885 Ken Tooze Excavation Ken Tooze (503) 932-7725 Knipe Realty Jeff Knipe (503) 445-7660 ServPro of Salem West Chad Kerlegan (503) 393-9999

We are an 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.

Spring 2017 | The Chalkline | 3

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1

8/2/16 3:36 PM www.HomeBuildersAssociation.org

PRESIDENT’S MESSAGE

It feels like a new season It is an honor to be writing this message as your 2017 HBA president.

I am humbled to be a part of a great team of HBA leadership this year. We are enjoying a beautiful and very functional new building shared with OHBA, thanks to Dan Dorn of Sunco, CB|Two Architecture, and our building committee. We are also blessed with an excellent staff that works hard for us and a board that is eager to be involved for the betterment of the building industry. I guess the only new news is the building!

As the sun is coming out, the plants are budding, and we are coming out of this unusually harsh winter I can’t help but make a comparison to our construction economy. I am taking an unusual amount of phone calls, having a hard time scheduling subs, and noticing construction vehicles and jobs signs all over. All this seems to be an obvious end of the economic winter of building. Talk of layoffs, slow times, and lack of work has given way to a skilled workforce and housing shortage. Relative to the problems we are leaving behind, these seem like good problems to have. Also, we can’t ignore the new group of leadership moving in on Capitol Hill.

Besides the element of surprise and entertainment, they bring a little hope to an industry wrought with red tape, restrictions, and the influence of overreaching special interest groups.

So where are we at in the middle of it all? How are we being affected by the economy, and the changes in our government?

What are we doing about the labor shortage? Now is the time to be involved. We have the opportunity to do something to positively change the course of the industry and continue to be able to provide affordable housing to our friends and neighbors. It starts right here close to home by being engaged on the local level, joining the HBA, and urging your colleagues and subcontractors to do so as well. If you feel you are too busy to be involved (a lot of us feel that way), then at a minimum stay informed and find out in what ways you can support the industry and protect the American dream of home ownership. Be informed about what inclusionary zoning is and how

www.HomeBuildersAssociation.org

President’s Message

by HBA President Kent Kaufman

it could affect you, or the Clean Water Act, or what about the new WOTUS rule (Waters Of The United States)? Get involved with CTEC (Career and Technical Education Center) and help to train or employ the new generation! Or just join us at an upcoming HBA dinner and hear about what our Oregon HBA lobbyist Jon Chandler is fighting for at the Capitol. I can assure you, you will gain threefold back what you put into getting involved in the HBA. Not only will you become informed and aware of what is happening around you, but you will get to know an amazing group of people. Both staff and volunteers (like many of you) of NAHB, OHBA, and HBA, are very engaged on current issues and diligently fighting to not only help our industry, but for integrity and fairness in our government as well.

As we are actively looking at these current challenges, we are reminded that this is a season. A good season! I believe we are in the spring of another good run, but remember, time flies, and fall is looming around the corner. Remember to enjoy the busyness and hopefully prosperity, but also be planning for winter. We need to be positioning our companies to be flexible and resilient, setting them up to grow and protect assets, and finally, considering our valuable employees and subcontractors and how to keep them around so they are here to help us through the next season.

Get out there and enjoy the spring season of this economy. If I haven’t met you, please introduce yourself at the next HBA dinner! I look forward to representing you for 2017!

Spring 2017 | The Chalkline | 5

Face to Face Home Show puts vendors directly in front of customers

By Steve Ritchie

While the products and services varied, more than 130 Mid-Valley Home Show vendors were all looking for the same thing Jan. 13-15: an opportunity to share their story and meet potential customers face-to-face.

The 40th annual show, held at the Oregon State Fairgrounds, featured a wide variety of businesses -- home improvement, construction, remodeling, professional service and local specialty product vendors with displays of everything from custom homes to painting contractors, landscapers, beekeepers and dog boarders And guess what? In this age of internet shopping, people still like getting the straight lowdown from the experts about their home needs and wants, and the chance to personally examine potential purchases.

“We like to bring our barns and sheds to the show to allow people to see the product, feel the product, and walk through it,” Travis Brown of Better Built Barns said.

“Hands-on is always the best. You can always go on the internet to see what is out there, but it’s always better to be able to see it and touch it.”

Jerry Page of Total Comfort Weatherization, who said he has participated in every one of the 40 Mid-Valley Home Shows, was in full agreement.

“People are here with needs and they are using us like the internet,” Page said. “They are here because they are interested in siding or windows or insulation. People want to look and touch and feel. It has been a good show and a steady stream of people all day long.”

Page also noted that the vendor displays are an opportunity to show off their complete product or service lines.

“Lots of our (past) customers are here and they come by and go, ‘Oh I didn’t know that you did siding.’ It’s hard to get across all the things that you do so this helps.”

Home Show sponsor Randy Melton of Melton’s Heating and Air Conditioning had a succinct message for businesses.

“It’s a way to brand your company,” he said. “Our sales reps get the chance to visit with a lot of different people about their needs.”

Kendra Porter-Moul of Chrysalis Interior Design.

6 | The Chalkline | Spring 2017

STEVE RITCHIE

Several of the vendors were not shy about extolling the benefits of the Home Show, noting that show clients have been a major factor in building their businesses. www.HomeBuildersAssociation.org

Representatives of Weigel Homes greeted show-goers with smiles and answers to their questions.

“This is my fourth year at the Home Show,” said Kendra Porter-Moul. “My business -Chrysalis Interior Designs -- greatly relies on this show (because) the people coming are truly interested shoppers. The leads that I get from the show provide me with at least four months of business. For me, as a small business owner in Salem, this show means a lot.”

Porter-Moul had an enter-to-win contest for people who stopped by her booth. The winner received free product and services, and all the entrants got an offer of a free in-home consultation through an email she sends after the show.

“The last two years have been a blessing and we’re hoping to continue that.”

- Rick Ziebell. Owner Salem Door & Supply Co.

Many of the other vendors offer a special show discount to those who make a purchase. Discounts of 5 to 20 percent seemed to be the norm. Others offered a discount if the work is purchased and completed by www.HomeBuildersAssociation.org

a certain date, a “win-win” which helps the business through a slower time of the year.

Businesses also have found that it pays to have an eye-catching booth display. Some offered large color photos of new homes or remodeling jobs, while others put together a replica of what they do. Green Acres Landscape’s display takes three days to set up, and their reps at the Home Show said this was even a scaled down version of what they do for the Yard, Home and Garden show. Helmet Gutter demonstrated how its system of covered gutters works with running water.

Rick Ziebell, owner of Salem Door & Supply Co., displayed beautifully constructed doors. Ziebell said that he likes sharing information and helping people who come to the show with questions.

Spring 2017 | The Chalkline | 7

Registration opens for 2017 Tour of Homes

Above: Rick Ziebell of Salem Door & Supply Co. with friends.

Below: Jesse Howell of Fitzpatrick Painting and some young Show-goers, who are finding goodies in an unusual spot.

STEVE RITCHIE

The 2017 Tour of Homes will be June 17 – 25. Participation in the Tour of Homes continues to be the best, most cost-effective, marketing opportunity available to local builders.

Thousands of potential home buyers visit the Tour each year, generating a large number of sales and build jobs for the builders that take part.

Whether you’re building a custom or spec specifically for the Tour, or have inventory already on the market, you can’t afford not to be part of this year’s Tour.

The Tour of Homes provides you with an excellent opportunity to enhance and focus your marketing efforts.

“People coming here are looking for a new door, or maybe some moldings. They feel like they are getting answers, and they are appreciative. The general public sometimes doesn’t know where to go, and maybe they don’t want to go to a big box store . . . I’ve talked to people here from Brownsville all the way to Mill City, people who are building homes. It’s not just Salem. They want to see product, and I think it has been a great turnout,” he said.

The upbeat Ziebell said the Home Show came at a good time.

The cost for entering the 2017 Tour of Homes is affordable, and on a sliding scale depending on when the entry is received.

Application forms are available for download at www.homebuildersassociation.org.

Submit your entry by March 17 to receive the lowest entry fee.

For more information, contact Jeni Huntington, 503-399-1500, or by email at jhuntington@homebuildersassociation.org.

“As we all know, we came off 4 1/2 years of a really tough recession. The last two years have been a blessing and we’re hoping to continue that.”

8 | The Chalkline | Spring 2017

www.HomeBuildersAssociation.org

Get involved in the HBA’s 2017 New Product House Groundbreaking took place in late January for the HBA’s 2017 New Product House, being built in the Rock Ridge Estates subdivision in South Salem. This year’s house is a collaborative effort between Rick Massey of Richard Massey Construction and Tim Mametieff of New Crossing Homes, and will be a 2600 square foot home on a side sloping lot with virtually all of the living area on the main floor, and the garage and bonus room below.

The New Product House is a collective project of the HBA membership that is built and sold to help fund the Home Builders Association’s political action and legal defense funds. We utilize as much donated and discounted labor and materials as possible, with the proceeds helping elect candidates to local and statewide

office who support issues important to the building industry and to small business, as well as helping fund lawsuits that defend the interests of the industry.

If you would like to be involved in this year’s house, please contact Rick Massey at 503-580-5856, Tim Mametieff at 503-885-4066 or Jeni Huntington at 503-399-1500 or by email at jhuntington@homebuildersassociation.org for more information.

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Spring 2017 | The Chalkline | 9

HBA NEWS

Oregon OSHA adopts changes to the Recording Workplace Injuries and Illnesses rule SAFETY UPDATE

David Davidson HBA Safety Management Consultant

On Nov. 10, Oregon OSHA adopted changes to its Division 1 requirements for reporting workplace injuries and illnesses to align them with the requirements in federal OSHA’s unusually titled final rule, Improve Tracking of Workplace Injuries and Illnesses. (As part of its state plan agreement with federal OSHA, Oregon OSHA’s rules must be at least as affective as OSHA’s, thus the change.)

The key changes in Oregon OSHA’s Division 1 rule – 437-0010700, Recording Workplace Injuries and Illnesses – become effective May 1, 2017, and require employers to: • Establish a procedure for employees to report work-related injuries and illnesses promptly and accurately.

• Inform employees about the procedure and tell them how they can report injuries and illnesses.

• Inform employees that they have the right to report work-related injuries and illnesses free from retaliation.

• Electronically submit injury and illness records to federal OSHA annually if they are in one of the following categories: • They had 250 or more employees at any time during the previous calendar year and are required to maintain an OSHA 300 log • They are in an industry listed in the rule (437-0010700 – Table 8, below) and had 20 or more employees but fewer than 250 employees at any time during the previous calendar year.

• Beginning in 2019, the submission deadline will be changed from July 1 to March 2.

Setting up reporting procedures Employers can set up their own procedures for reporting work-related injuries and illnesses – the only restriction is that the procedure must not deter or discourage an employee from accurately reporting a workplace injury or illness.

The procedure must give employees a reasonable time to determine if the injury is serious enough to report. A procedure that requires immediate reporting without accounting for the nature of the injury would not be reasonable, for example.

The procedure must not make reporting so difficult or complicated that an employee would be discouraged from reporting. For example, if an employee must travel a significant distance to report or must report the same injury or illness multiple times to multiple levels of management the procedure would not be reasonable.

10 | The Chalkline | Spring 2017

Informing employees about their rights Informing employees about their rights to report workplace injuries and illnesses free from retaliation is easy. Meet the requirement by posting the current version of Oregon OSHA’s ‘It’s the law!’ poster or by telling the employees they have a right to report work-related injuries and illnesses free from retaliation – a written notice to each employee or an email will do.

Are discipline, drug, and incentive programs affected by the changes?

Not specifically; discipline, drug, and incentive programs aren’t mentioned in the changes. However, it’s a good idea to review these programs, if you have them, to ensure that they don’t discourage employees from exercising their right to report workplace injuries and illnesses.

Discipline: Don’t use discipline, or the threat of disciplinary action, to retaliate against an employee for reporting an injury or illness. Your safety program should treat all workers consistently if they break rules – regardless of whether they were, or were not, injured.

Incentives: Don’t use incentive programs to penalize workers for reporting an injury or illness. For example, if an employee reports an injury, and is subsequently denied a benefit as part of an incentive program, this may constitute retaliation against the employee for exercising the right to report. Incentive programs should encourage safe work practices and promote worker participation in safety-related activities.

Scenario 1: Employer informs employees that it will hold a substantial cash prize drawing for each work group at the end of each month in which no employee in the work group sustains a lost-time injury. Employee X reports an injury Table 8 Submission year

Establishments with 250 or more employees

Establishments with 20-249 employees

Submission deadline

2017

Form 300A

Form 300A

July 1, 2017

2018

Forms 300A, 300, 301

Form 300A

July 1, 2018

www.HomeBuildersAssociation.org

HBA NEWS

that he sustained while operating a mechanical power press.

Employee X did not violate any employer safety rules when he sustained his injury. Employee X’s injury requires him to miss work for two days. Employer cancels the cash prize drawing for that month for Employee X’s work group because of Employee X’s lost-time injury.

Question: Did Employer violate this rule when it cancelled the cash prize drawing for Employee X’s work group because of a lost-time injury that was sustained while Employee X was following the employer’s work rules?

Answer: Yes. Cancelling a substantial cash prize drawing solely because an employee was injured and reported the injury, without regard to the circumstances surrounding the injury, would likely violate this rule. In this case, the employer retaliated against the employee (by cancelling a substantial cash prize drawing) because the employee engaged in protected activity (reporting his injury to the employer). This type of activity may also discourage reporting because a worker may feel pressure from coworkers, or may be reluctant to report out of loyalty to those coworkers.

Drug testing: Don’t use drug testing, or the threat of drug testing, to retaliate against an employee for reporting an injury or illness. What’s important is whether you have a reasonable basis for believing that an employee’s drug use could have contributed to the injury. There is no prohibition against post-incident drug testing under state or federal law, including workers’ compensation law, random drug testing, and pre-employment drug testing. However, post-incident drug testing will not necessarily indicate whether drug use played a direct role in the incident.

Scenario 2: Employer required Employee X to take a drug test after Employee X reported work-related carpal tunnel syndrome. Employer had no reasonable basis for suspecting that drug use could have contributed to her condition, and it had no other reasonable basis for requiring her to take a drug test. Rather, Employer routinely subjects all employees who report work-related injuries to a drug test regardless of the circumstances surrounding the injury. The state workers’ compensation program applicable to Employer did not address drug testing, and no other state or federal law requires Employer to drug test employees who sustain injuries at work.

Question: Did Employer violate the rule by subjecting Employee X to a drug test simply because she reported a work-related injury?

Answer: Yes. This new rule prohibits an employer from taking adverse action against employees simply because they report work-related injuries. Employers must have a legitimate business reason for requiring a drug test, such as a reasonable belief that drug use contributed to the injury. If drug use could not reasonably have contributed to a particular injury and the employer has no other reasonable basis for requiring a drug test, the rule prohibits the employer from drug testing employees

HBA Safety Training 2017 Forklift Safety March 23, 2017 – 8:30 am – 10:30 am Ladder Safety April 27, 2017 – 8:30 am – 9:30 am Nail Gun Safety May 11, 2017 – 8:30 am – 9:30 am Fall Protection Safety June 22, 2017 – 8:30 am – 9:30 am Avoid an OSHA Violation: Review the top 10 violations and the dos and don’ts to avoid a violation from OSHA Fall Protection: This seminar will provide information on the new Oregon-OSHA rules. We will cover the changes, how to avoid OSHA violations and fall protection suggestions.

Ladder Safety: We will cover the OSHA rules, proper set-up, inspections, storage, and usage.

Nail Gun Safety: We will cover safe usage, inspections, and maintenance.

Forklift Safety: Unfortunately, most employee injuries and property damage can be attributed to lack of safe operating procedures, lack of safety-rule enforcement, and insufficient or inadequate training. This seminar will review the Oregon-OSHA rules and safe operating practices needed for the safe operation of forklifts. Attendees will also receive all forms/documents/certificates needed to be Oregon-OSHA compliant as Certified Forklift Operators.

Home Builders Association of Marion & Polk Counties Safety Seminar – HBA Conference Room

Date: ___________ Class Name: _________________________________ Company _____________________________________________________ Attendee Name(s) ______________________________________________ Phone ______________________ Fax ________________________ Email _______________________

Please fax this registration form to the HBA office @ 503-399-0651

simply because they report injuries unless the drug test is conducted pursuant to another state or federal law. www.HomeBuildersAssociation.org

Spring 2017 | The Chalkline | 11

OHBA NEWS

Green Building

By Howard Asch OREGON HOME BUILDERS ASSOCIATION

The buzz about Net Zero Energy Homes California has set a target for all new homes built after 2020 to be net zero energy homes or net zero energy ready. What do they mean when they talk about net zero energy, and how will that impact us in Oregon?

A net zero energy home is one that generates about the same amount of energy on site as it uses, usually through energy efficient construction and solar electrical generation. Most net zero houses are connected to the electrical grid and at times use power from the grid and other times put power back into the grid.

Energy can also be generated with on-site wind, geothermal or hydroelectric generation.

The reason for building net zero energy houses include a desire to reduce reliance on fossil fuels, reduce carbon emissions, improve disaster resiliency and improve comfort. A net zero house insulates the owner against future cost increases for fuel and lower monthly utility costs.

A net zero home will usually have extremely well insulated walls, floors and ceilings. They may reduce the size and number of windows, and the ones that remain are extra efficient. Design and orientation on the lot will take into consideration the potential to harvest passive solar heating in the winter and reduce it in the summer and to take advantage of sheltering from the wind. Skylights or solar tubes can reduce lighting needs during the day time.

Careful attention will be given to reducing air leakage Highly efficient appliances will be used that not only use less energy. Heat recovery systems for waste water and waste heat from appliances may be installed to use for supplement water heating.

Energy is most often generated from solar electrical panels on the roof. When the panels generate more electricity than is being used on site it is sent through the meter to

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OHBA NEWS

the utility company. The solar panels will be sized to average enough generating capacity to equal energy usage throughout the day.

WHERE

Technology to build a net zero house is readily available.

But thicker walls, tighter construction and efficient design require different construction methods and skills. Special attention to detail is necessary to avoid moisture problems.

A builder and their subs will need to clearly understand this is not an ordinary house and expect to take a little longer to complete the work when building their first net zero house.

MEANS SOMETHING

What about net zero energy homes in Oregon? What California does is likely to trickle into Oregon. California’s emphasis on reducing energy use and carbon release is likely to embolden energy conservation activists in Oregon.

Well-funded groups are likely to push for new rules or regulations to require greater efficiency. It may not be a matter of if net zero gets to Oregon, but when.

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Our Construction Industry Group advises construction and design professionals on:

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Spring 2017 | The Chalkline | 13

Top challenge for builders is labor cost/availability

By Ashok Chaluvadi

The monthly NAHB/Wells Fargo Housing Market Index includes a set of “special” questions on a topic of current interest to the housing industry. In December 2016, the special questions asked builders about the problems they faced in 2016 and expect to face in 2017.

Topping the list of problems builders faced in 2016 and expect to face in 2017 is the Cost/Availability of Labor, a

significant issue for 78% of builders in 2016 and one that has significantly grown in importance since 2011. That year, 13% of builders rated labor as a significant problem, followed by 30% in 2012, 53% in 2013, 61% in 2014 and 71% in 2015.

The second most significant problem in 2016 was Cost/ Availability of Developed Lots-cited by 60% of builders. In 2011, the Cost/Availability of Lots was rated significant by 21% of builders who responded to the survey. That share

TOP 10 SIGNIFICANT PROBLEMS FACED IN 2016 AND EXPECT TO FACE IN 2017 78% 82%

Cost/availability of labor 60%

Cost/availability of developed lots Impact/hook-up/inspection or other fees Federal environmental regulations and policies

52%

Regulation of banking/financial institutions

48% 52% 52% 49% 46% 48%

Local/state environmental regulations and policies Inaccurate appraisals Building material prices

45% 47%

Development standards (parking, setbacks, etc.)

42% 40%

Health Insurance Source: HMI Survey, NAHB EcHp.

67%

60% 61%

0%

20%

40%

58% 55%

60% Faced in 2016 Expect in 2017

60%

80%

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14 | The Chalkline | Spring 2017

CCB #12078

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increased to 34% in 2012, 46% in 2013, 55% in 2014 and again to 58% in 2015. Both the availability of labor and lots highlight the expected constraints of a recovering housing market.

Impact/Hook-up/Inspection or other Fees was a significant problem for 60% of builders in 2016. In 2013, it was a problem for 46% of builders, 52% in 2014, and 53% in 2015 and is expected to be an issue by 61% in 2017. Federal Environmental Regulations and Policies was a significant problem for 58% of builders in 2016. In 2013, this was rated a significant problem by 46% of builders, 53% in 2014 and then 55% in 2015.

Regulation of Banking/financial institutions was a significant problem for 55% of builders in 2016. In 2011, it was rated a significant problem by 77% of builders. The Local/state environmental regulations and policies continue to be a problem for 52% of reporting builders in 2016 compared to 41% in 2011.

Building material prices was a significant problem for 48% of builders in 2016 and expected to increase to 60% in 2017. In fact, this issue experienced the largest difference between builders noting it was an issue in 2016 and builder expectations of it as a challenge in 2017. Other issues builders expect to become more significant problems in 2017: labor, lots, and rising interest rates.

SHARE OF SINGLE-FAMILY BUILDERS REPORTING LABOR COST/AVAILABILITY PROBLEMS

53%

61%

78%

71%

30% 13% 2011

2012

2013

2014

2015

2016

Source: HMI Survey, NAHB EcHp.

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Partner with HBA and Statesman Journal for 2017 Tour of Homes!

The 2017 HBA of Marion and Polk Counties Tour of Homes will attract thousands of homeowners and home shoppers seeking the latest in home trends showcased by premier Mid-Willamette Valley home builders. Tell these consumers about your business before and during this event with an ad in the Official 2017 Tour of Homes Guidebook. Stand out with an ad adjacent to the blueprint of your home.

With this publication you will reach over 250,000 engaged homeowners throughout Marion and Polk counties. Guidebooks will also be available during the tour.

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Spring 2017 | The Chalkline | 17

OHBA NEWS

Permits up, but we’re still underbuilding The information below was the report OHBA gave at the NAHB meetings at the International Builders’ Show in January.

STATE ASSOCIATION UPDATE Jon Chandler, CEO

While it’s good to see our permit numbers growing, we are still underbuilding relative to demand, which is exacerbating our already grim affordability situation.

US Census Data - Building Permits For Oregon MSAs Oregon

Bend

Corvallis

Eugene

Medford

Portland

Salem

Total

SF

Total

SF

Total

SF

Total

SF

Total

SF

Total

SF

Total

SF

Jan-16

1233

675

126

124

4

4

43

33

37

34

928

506

138

20

Feb-16

1258

909

151

145

10

10

59

54

42

34

944

637

44

33

Mar-16

1851

951

169

127

6

6

63

63

52

52

1709

729

59

45

Apr-16

1529

969

187

136

5

5

103

49

104

38

1118

710

39

39

May-16

1830

924

241

163

6

6

350

61

57

39

1297

670

36

34

Jun-16

1271

998

158

148

10

10

67

49

75

51

1002

740

56

42

Jul-16

2128

890

168

130

50

22

77

47

51

43

1670

561

120

38

Aug-16

1982

1002

265

175

3

3

84

62

79

50

1389

680

206

35

Sep-16

1520

845

225

153

5

5

62

54

44

44

1207

553

51

49

Oct-16

1529

944

218

165

5

5

49

49

63

63

1161

580

34

32

Nov-16

1514

820

203

145

7

7

48

46

53

43

1127

490

89

29

YTD-16

17644

9927

2011

1611

111

83

1005

567

657

491

13552

6856

872

396

Total-15

17510

10255

2227

1550

142

138

721

578

717

604

13697

7102

1297

807

Total-14

16645

8573

1330

1274

451

119

1316

506

747

590

12356

5462

944

712

Total-13

14969

8850

1317

1204

256

86

939

478

645

556

11512

5640

832

534

Total-12

10608

6342

727

667

348

51

740

349

482

342

7277

4203

546

290

Total-11

7663

4854

457

455

328

30

716

384

361

253

5190

3133

360

248

Total -05

31024

23840

4460

3893

388

220

2261

1492

2036

1707

17175

12728

1671

1384

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Huggins.com 18 | The Chalkline | Spring 2017

www.HomeBuildersAssociation.org

OHBA NEWS

In other news: A Republican was elected statewide for the first time since statehood!

OK, it hasn’t been quite that long but it’s been 15 years, and that was for the US Senate, not a state position. Dennis Richardson, a former legislator from southern Oregon, was elected Secretary of State in what was one of the most surprising (and welcome) electoral results this cycle.

Voters rejected what would have been the largest corporate tax in the country.

It only took over $20 million in campaign funds, mostly from businesses and business lobby groups, but the campaign against a government-union sponsored initiative was successful – the tax increase went down by almost 20 points.

Republicans picked up a seat in the Senate, held serve in the House.

Due to the tragic death of a D state senator, a special election was held and the Republican candidate won. The significance of that victory is that the Ds are now without super-majorities in either chamber, making their path towards tax increases a bit more difficult.

OHBA’s new political fundraising effort did very well.

As reported earlier, we decided to hire a professional fundraiser to help us raise PAC money, and while we didn’t get to our admittedly-aggressive targets, we did raise about $140,000 of new money, which allowed us to be much more effective in our state and local political efforts this past cycle. We were successful in six of the nine legislative races we targeted, and we also were able to contribute significantly towards the anti-tax campaign.

Going forward, we will be continuing this effort with the objective of dramatically increasing our political presence on both the state and local levels.

We will be starting our local association circuit rider in 2017.

By the time caucus meets, we will know if we received a grant from NAHB to hire someone to work with three or four of our smaller associations to get them back on their feet. But even if NAHB declines to participate, we will be moving forward – using a dues increase and other funds – to put a state association staff person on the road to serve as a traveling EO. We think this will be successful in growing local and state membership and look forward to reporting on the program in the future.

As stated before, Oregon politics continue to mostly suck.

Our legislative session starts the first of February, and we know we’ll be talking about: • Increased regulations on diesel fueled off-road machinery • More employer mandates, such as • Mandatory family leave, to go with our already mandatory sick leave • Flexible scheduling rules • Wage theft • Rent control, I mean, “rent stabilization”, which of course is way different • Limitations on no-fault evictions • Taxes. The voters’ rejection of the above-mentioned ballot measure notwithstanding, the Ds are going to be pushing for additional revenue, which will put the mortgage interest deduction into the crosshairs.

As always, let me know if you have any questions or observations.

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Spring 2017 | The Chalkline | 19

HBA NEWS

Code Update Residential structure, plumbing, electrical codes under review

By Howard Asch OREGON HOME BUILDERS ASSOCIATION

Building codes need to be updated regularly to provide for new materials and methods of construction and developments that can improve building safety. Oregon is in the midst of a major code update.

Last summer Building Codes Division (BCD) published notice that it was initiating a code update and that it was accepting proposals for changes to the residential structures, plumbing and electrical codes. This provided an opportunity for everyone to submit their ideas for improving the code.

Several proposals were submitted for each code. BCD reviewed those proposals to be sure they met the basic requirements such as identifying the code section to be changed, the proper wording of the proposal, and answers to a number of questions to explain why the proposed change was needed and what the safety and financial impact of the proposal would be if it was approved.

The state uses boards composed of people involved with or affected by the code to help design the rules BCD enforces, including the codes. These boards appoint individuals with code knowledge to serve on a committee to review potential changes and make a recommendation to the board whether or not to adopt the changes. The committees include people who administer the codes, contractors, building designers and building operators.

The committees carefully review every change to assess if it is needed, if it is worded correctly, if it improves the code and if the level of safety provided comes at a reasonable cost. Anyone can attend a review committee meeting and provide comment on any change.

Code review committees have begun their work. Electrical, plumbing and electrical review committees have already reviewed the first chapters of their respective codes. The review is expected to be completed in February.

Once the committees have completed their review they will report their recommendations back to their respective board and the board will make a recommendation to the director of BCD whether or not to include the changes in the next edition of the code.

BCD will then prepare the new code with all its changes for publication. It will be printed and made available before the new code goes into effect. It is the intent of BCD for the codes currently under review to become effective in October of this year. Often a grace period is allowed to provide time to become familiar with the changes and some transition time is provided before the new code must be followed.

The Oregon Home Builders Association is involved in the code change process including making proposals, sitting on review committees, providing testimony and monitoring all the review hearings. Once the codes have been finalized information on the changes will be provided for home builder associations to help with the transition to the new code.

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www.HomeBuildersAssociation.org

VITAL STATISTICS HBA NEWS

Vital Statistics

Information Courtesy of Willamette Valley Multiple Listing Service NEW RESIDENTIAL CONSTRUCTION

KEIZER

CENTRAL SALEM

SUBURBAN EAST—N

SUBURBAN EAST—S

SE SALEM

SOUTH SALEM

WEST SALEM

MARION COUNTY

POLK COUNTY

TOTAL

78

2

3

2

41

52

55

48

70

351

$327,046

$221,375

$227,499

$190,700

$369,666

$355,817

$293,768

$325,434

$284,803

$320,197

Average Square Footage

2,110

1,618

1,525

1,350

2,164

2,192

2,026

2,166

1,844

2,058

Average Cost per Square Foot

$155

$137

$149

$141

$171

$162

$145

$150

$154

$152

Average Days on the Market

208

213

68

102

145

137

175

141

149

165

Currently Active Listings

14

1

4

0

10

21

11

13

27

101

Units Sold 12 Months to Date Average Sales Price

Units Sold – 12 Months to Date

Months of Inventory on Market 5

600

4 400

3 2

200

1 0

16 cDe

6 -1 Se

pt

16 nJu

6 M

ar

-1

15 cDe

16 De

c-

6 -1 pt Se

16 nJu

-1 ar M

De

c-

15

6

0

Top Area Builders RANK

BUILDER

PERMITS*

1.

Fowler Homes

37

2.

Chad E Davis Construction

33

3.

Banner Homes

32

4

Comfort Homes

28

5.

Pacific National Development Inc.

27

6.

Don Lulay Homes Inc.

26

7. (tie)

MC Northwest

23

8.

Pahlisch Homes

23

9. (tie)

Del Boca Vista

20

10.

Tassy L. Davis Builders

20

Every Year Thousands Save Millions

Put Your NAHB Membership to Work Now.

* Building permits, last 12 months.

Data for all areas of Marion and Polk Counties. Dec. 1, 2015 - Dec. 31st, 2016. Data compiled from building permits applied for through Salem, Marion County, Polk County, Dallas and Independence building departments.

Looking for listings, lots, or land?

For Lot & Land Listings, please visit HomeBuildersAssociation.org/lot-and-land-listings.html www.HomeBuildersAssociation.org

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Spring 2017 | The Chalkline | 21

HBA NEWS

Salem Conference Center Trade Show Night April 11 The HBA’s annual Trade Show Night will be held in conjunction with our All-Member Meeting on Tuesday, April 11, 5 – 7:30 p.m. at the Salem Conference Center.

This popular event allows HBA members to show off their products and services to their fellow association members.

Members are encouraged to reserve a 6-foot table for $195 or a 10-foot space for $249, as well as provide a $50 -in-value door prize to be given away during the course of the evening. Space is limited and expected to sell out quickly.

Associate members can register to attend this event for $25 per person.

The first 30 builder members (one per company) who register will attend this event for free. A $500 prize will be awarded at the end of the event, providing extra incentive to stay for the entire evening.

If you would like to participate as a vendor, please contact the HBA’s Jeni Huntington at 503-399-1500 or by email at jhuntington@homebuildersassociation.org.

Salem Convention and Conference Center.

HBA Events Calendar DATE

EVENT

TIME

LOCATION

March 14

HBA Member Dinner

5:00pm - 7:30pm

Salem Convention Center

March 16

Lead Paint Certified Renovator Refresher Training

8:30am - 12:30pm

March 17-19

Mid-Valley Yard, Garden & Home Show

March 23

Forklift Safety Training

8:30am - 10:30am

HBA Conference Room

April 6

Lead Paint Certified Renovator Training

8:30am - 12:30pm

HBA Conference Room

April 11

HBA Trade Show Night

5:00pm - 7:30pm

Salem Convention Center

April 20

Lead Paint Certified Renovator Refresher Training

8:30am - 5:00pm

HBA Conference Room

April 27

Ladder Safety Training

8:30am - 9:30am

HBA Conference Room

May 9

HBA Member Dinner

5:00pm - 7:30pm

Salem Convention Center

May 11

Nail Gun Safety Training

8:30am - 9:30am

HBA Conference Room

May 18

Lead Paint Certified Renovator Training

8:30am - 5:00pm

HBA Conference Room

22 | The Chalkline | Spring 2017

HBA Conference Room Oregon State Fairgrounds

www.HomeBuildersAssociation.org

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Spring 2017 | The Chalkline | 23

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