MAB Homefront - Summer 2022 Magazine

The MAB

Homefront

Summer 2022

IN THIS ISSUE:

2022 BOARD OF DIRECTORS TRAVIS MOWBRAY- PRESIDENT

LAURI HOPWOOD - TREASURER

CASEY SCHRIOCK - VICE PRESIDENT

SHANE LIDER - IMM. PAST PRES.

Concrete Mobile

Minot Lumber

Mowbray & Son Plumbing & Heating

Dacotah Bank

CHRIS DAHL

KASPER ZIEGLER

United Rentals

Burdick Job Corps

ROB ORTS

COURTNEY PARDON

PHIL RISBRUDT

CURT OLSON

Verendrye Electric K & R Contracting

BRUCE WALKER - SENIOR LIFE DIRECTOR Coldwell Banker

JOE STENVOLD - LIFE DIRECTOR JAX Contracting

R

Bremer Bank MDU

JEFF HAIDER

WB Components

SCOTT LEE

Rolling Hills Lumber!

2022 COMMITTEES EXECUTIVE/STRATEGIC VISIONING Travis Mowbray, Casey Schriock, Lauri Hopwood, Shane Lider, Bruce Walker HOME & GARDEN SHOW Kasper Ziegler (Chair) Morgan Abel, Shane Lider, Lauri Hopwood, Jeff Haider

MEMBERSHIP Rob Orts (Chair) Chris Dahl, Joe Stenvold, Amber Kraft PARADE OF HOMES Mataya Lafontaine, Kimberly Keller, Renata Buen, Pat Bailey, Ashley Lawson, Alyx Pederson, Courtney Pardon, Jeff Haider

GOVERNMENTAL AFFAIRS Joe Stenvold, Phil Risbrudt, Shane Lider EVENTS Lauri Hopwood (Chair) Rob Orts, Phil Risbrudt, Chris Dahl, Kasper Ziegler, Courtney Pardon, Desiree Burleson, Lance Rascoe

40 BELOW COUNCIL Amanda Geinert, (Chair) Cole Stober, Ron Rudser, Gene Beau Lac, Morgan Langan, Mataya Lafontaine, Marie Hallof, Cody Hodenfield, Shane Lider, Phil Risbrudt, Alissa Ewan, Amber Kraft, Taylor Feller, Britain Zellers, Dan Yale, Samantha Rasmusson

Your membership with MAB automatically gives you 3-in-1 membership with: Minot Association of Builders | North Dakota Association of Builders | National Association of Home Builders

The MAB Homefront is the official publication of the Minot Association of Builders (MAB). The MAB Homefront is published four times per year to its members and others associated with the building industry. Neither the advertisers, nor MAB, will be responsible or liable for misinformation, misprints, typographical errors, herein contained. For advertising rates, resource file or address information, contact MAB. Suggestions, ideas and letters are always welcome!

Minot Association of Builders (MAB) 606 Burdick Expressway West Suite B Minot, ND 58701 Phone: 701-852-0496 www.minotab.com | contact@minotab.com Like us! www.facebook.com/minotab | Follow us! www.instagram.com/minotbuilders The MAB Homefront || 1 || Summer 2022

MINOT ASSOCIATION OF BUILDERS

The MAB

Homefront contents 1

2022 Leadership Team

11

40 Below Corner

4

Letter from the President

12

MAB Update

4

Memo from the EO

13-14

City, County and State

5-6

Membership

15-16

NDAB News

7-9

Upcoming Events Feature

17-18

National News

10

Realtors in the News

advertising directory cleantechllc.us

MEMBER BENEFIT ALERT!

A-1 Evans Septic

Houston Engineering

Ackerman Estvold

Landsiedel's Heating & Air Conditioning

All-State Contracting

Lite-Form of Minot

B & B Insulation

Mindt Construction

Blake Krabseth

Minot Lumber and Hardware

Bremer Bank

Minot Sash & Door

Clean Tech

The Title

Coldwell Banker

North Star Steel

Concrete Mobile

Northern Prairie Home Improvement

Connole & Somerville

Ready Builders

Dacotah Bank

SERVPRO

Farmer’s Insurance—Miranda Schuler

Signal Realtors

First Western Bank & Trust

SRT

First Western Insurance

SVR

Future Builders

Tollefson's Carpetland

Glass Doctor

Verendrye Electric Cooperative

Gravel Products

Watne Realtors Xcel Energy

SERVICES OFFERED Portable Toilet Rentals Certified Septic System Install/Repair and Inspection

Septic Tank Pumping Floor Drains Grease Trap Pumping Hydro Jetting

MINOT ASSOCIATION OF BUILDERS

FOR RATES, call 701-852-0496 The MAB Homefront || 2 || Summer 2022

LETTER FROM THE PRESIDENT TRAVIS MOWBRAY 2022 MAB PRESIDENT

Minot Association of Builders Members, Summer is officially here, and construction season is in full swing. Recently this year, our industry had many new economic struggles to overcome including crazy gas prices and the insecurity that rising inflation can bring. Fortunately, our industry outlook in North Dakota is still strong and the Association of Builders is here for support whether through training or legislative action and information. This spring, our association hosted two Lunch and Learn sessions, a Candidate Forum, and a City Leaders Luncheon just to name a few. It’s great to see members interacting with those in the community in these informative sessions. We’d like to thank all who attended and supported our spring education and networking events.

The arrival of summer also brings...golf events! Remember that Birdie with the Builders is

coming up soon! The date is set for July 18th at the Minot Country Club so mark your calendars and sign up your teams today. This is a great event that helps support our local association and initiatives. Lots of fun and food planned again this year so hope to see you all there!

On the business side, the North Dakota Association of Builders summer meeting will take place in Minot on July 20-21. This is a great chance to see how NDAB works for you firsthand and to personally meet other members and community leaders from around the state. Stay tuned for more info and details to come!

Sincerely, Travis

MEMO FROM THE EO ERIKA KELLY MAB EXECUTIVE OFFICER

As we are full-swing into summer, you know we are working on the Q2 is in the past—we are halfway through the golf tournament, trap shoot event, year...how are you doing?? It seems so very cliché to and even getting ready to roll out say but I’m going to do it — summer is flying by. The Home & Garden Show registration. construction season is in full swing and although Take a peek at what we’ve been attendance and involvement in MAB programming busy with and what is coming up. inevitably dwindles in these summer months, I can’t Mark your calendar and attend a new event or help but be relieved because it just means one thing — committee this fall. I know it will bring value to you our industry is busy. personally and professionally.

SIGNS OF Summer.

As you’re out on the jobsite or crunching numbers for the next project, keep in mind that your Association is here to be a resource for you — the business owner, the person out in the action. Pick up the phone or send an email if there is something that MAB can do to help your business, or if there is something we can bring to the table to add value to your membership.

MINOT ASSOCIATION OF BUILDERS

I hope you enjoy this issue and invite you pass it along to a coworker or business partner when you are finished — share all the benefits the MAB can offer.

Wishing you well,

Erika

The MAB Homefront || 4 || Summer 2022

MEMBERSHIP We would like to extend a big THANK YOU to our members who are up for renewal this quarter. We have loved working with you over the past year and look forward to many years moving forward!!

Your continued support of the Minot Association of Builders helps us continue to work for you at a local, state and national level.

JULY Central Power Electric Cooperative, Inc. | Thomas Meland

Muus Lumber and Hardware | Ron Rudser (Affiliate)

Fargo Glass | Joe Haider

Overhead Door Co. of Minot | Mandy Hanson

General Equipment & Supplies | Ryan Hokenson

Peoples State Bank | Rick Beall

I.B.E.W. | Robert Wolf

Souris River Designs & Home Improvements | Dave Lebrun

Muus Lumber and Hardware | Art Lautt Jr. (Affiliate)

United Community Bank | Jennifer Hubrig

AUGUST 701 Realty, Inc. | McKenna Gudmunson

Future Builders | Duane Johnson

701 Realty, Inc. | Andrew Gudmunson (Affiiate)

Magic City Garage Door Co | Tony Meland

Brady-Martz & Assoc | Ryan Bakke

Minot Lumber & Hardware | Joni Hoffer

Concrete Mobile | Hallie Schriock

NW Building Improvement | Larry Eidsness

SEPTEMBER Birdy's Hydromulching | Levi Bjertness

Leingang Home Center | Sid Belzer

Brokers 12 | DelRae Zimmerman (Affiliate)

Newkota | Kent Kirkhammer

Dufner Construction | John Dufner

Ready Builders Inc | Stacey Abel

Jost Construction, Inc. | Darla Jost

The Spot | Sherry McGlaughlin

K & R Contracting | Phil Risbrudt

The Title Team | Taylor Feller (Affiliate)

Do you see your name here?? Don’t forget to renew your membership to get access to all the latest info, events, and exclusive sponsorship opportunities for your event. It is so easy to renew online — just visit www.minotab.com.

Prefer to receive an invoice and mail a check for your renewal? No Problem!

Just email Erika at contact@minotab.com for more information.

The MAB Homefront || 5 || Summer 2022

MINOT ASSOCIATION OF BUILDERS

MEMBERSHIP

MAB’S NEWEST MEMBERS April 2022—June 2022

SEE YOUR AD HERE! CALL THE MAB OFFICE TO FIND OUT MORE. 852-0496

top recruiters

Thanks to these members who have helped grow our MAB community by recruiting new companies to join our association. If you have a member prospect, please contact Erika Kelly (contact@minotab.com or 852-0496) and she’ll take it from there!

STATESMEN: (500-999 Credits) John Coughlin (513) SUPER SPIKES: (250-499 Credits) Bruce Walker (400) Joe Stenvold (328) ROYAL SPIKES: (150-249 Credits) RED SPIKES: (100-149 Credits) Greg Aasmundstad (134) Rob Orts (117) GREEN SPIKES: (50-99 Credits) Dave Lebrun (81.5) John Lund (73) Joni Hoffer (68) Cindy Snay (64.5) LIFE SPIKES: (25-49 Credits) Joe Kraft (40) BLUE SPIKES: (6-24 Credits) Pat Bailey (24) Christopher Dahl (12) Stacey Abel (9.5) Erika Kelly (8.5) Todd VanDusen (8) Phil Risbrudt (6) CANDIDATES: (1-5 Credits) Wendy Bailey (2) Pat Graner (2) Khris Walz (2) Jeff Haider (1) Hallie Lock (1) Travis Mowbray (1) Tom Philion (1) Aisha Vadell (1) Amanda Geinert (0.5) Penny Perdue (0.5) John Zimmerman (0.5) (Reported thru 4/1/2022 from NAHB)

MINOT ASSOCIATION OF BUILDERS

Joining the Minot Association of Builders is the first step to becoming more active in our industry.

Please take a moment to welcome the newest members of our association.

MAKIN’ SAWDUST BUILDER MEMBERSHIP

KEVIN REGALA 701-240-2776 https://makin-sawdust.com LEROY’S HOME IMPROVEMENT BUILDER MEMBERSHIP

LEROY SMESTAD 701-838-9916 http://leroyshomeimprovementinc.com MCDONALD WOODWORKS BUILDER MEMBERSHIP

CHAD MCDONALD (701) 838-9663 Mcdonaldwoods@live.com BETTER HOMES & GARDENS REAL ESTATE | ALLIANCE GROUP ASSOCIATE MEMBERSHIP

KAMIE ENSZ 701-222-2217 alliance@alliancere.net CORNERSTONE BANK ASSOCIATE MEMBERSHIP

GRANT WENTZ 218-686-3829 Grant.wentz@cornerstonebanks.net THOMAS LOSS, MUUS LUMBER AFFILIATE MEMBERSHIP

701-852-4038 thomasl@muus1904.com

NEW MEMBER RECRUITERS Thanks to these members who have help grow our Minot Association of Builders community by recruiting new companies to join our association this quarter!

STENVOLD 2 JOE JAX Contracting

1

LAURI HOPWOOD Dacotah Bank

HAIDER 1 JEFF WB Components BAILEY 1 PAT Muus Lumber & Hardware The MAB Homefront || 6 || Summer 2022

EVENTS CALENDAR

MARCH 4-5

MARCH 4

APR 21 MONTHLY | MAY 4 | MAY 24

after APRIL 26

MAY 10

MAY 12

JUNE 2

JULY 18

JULY 20-21

AUGUST 30

SEPTEMBER 8

DECEMBER

The MAB Homefront || 7 || Summer 2022

MINOT ASSOCIATION OF BUILDERS

COST

SCHEDULE

$250 PER 5 MAN TEAM - MEMBER 5:00 PM REGISTRATION OPENS $300 PER 5 MAN TEAM - NON-MEMBER 5:30 PM FLIGHTS 1 & 2 BEGIN— $20 MEMBER NON-SHOOTER ALTERNATING SHOOTING AND (dinner and drink included) DINNER SERVICE WITH AWARDS $25 NON-MEMBER NON-SHOOTER PROGRAM TO FOLLOW (dinner and drink included)

AWARDS & RAFFLES -1st, 2nd, 3rd PLACE INDIVIDUAL -1st, 2nd, 3rd PLACE TEAM SCORES -BEST TEAM THEME

-DOOR PRIZES -GUNS ‘N ROSES RAFFLE DRAWING

RETURN COMPLETED REGISTRATION FORM AND PAYMENT TO: MINOT ASSOCIATION OF BUILDERS 606 BURDICK EXPY W STE B MINOT ND 58701 OR REGISTER ONLINE AT WWW.MINOTAB.COM/SHOOTOUT

Spend an evening on the range with the Minot Association of Builders!

Dress in your best 80’s gear, jam to 80’s music and take home a dozen roses to your someone special!

The MAB’s Guns ‘n’ Roses Shootout will be held at the Minot Gun Club with registration starting at 5 PM on August 30th, 2022.

Shooters must sign up as a 5-man team. Three rounds of trap, dinner and a drink are included in registration fee.

IT IS THE SHOOTER’S RESPONSIBILITY TO PROVIDE SHOTGUN & AMMUNITION

BILL ME FOR THE FOLLOWING: Shooter #1

Company

Email

Cell Number (for text updates)

Shooter #2

Company

Email

Cell Number (for text updates)

Shooter #3

Email

Company

Cell Number (for text updates)

AVAILABLE

PRICE

5 Man Team - Member

-

$250

5 Man Team - Non-Member

-

$300

Non-Shooter - Member

-

$20

Non-Shooter - Non-Member

-

$25

Bullet Backer Sponsor

1

$1000

Rose Wrangler Sponsor

1

$600

Grub Staker Sponsor

2

$450

Oakley Opener Sponsor

1

$350

Station Situation Sponsor

7

$250

TOTAL $ Shooter #4

Company

Email

Cell Number (for text updates)

Shooter #5

Company

Email

Cell Number (for text updates)

REGISTRATION DEADLINE: AUGUST 22 FIND MORE DETAILS ABOUT SPONSORSHIPS AT WWW.MINOTAB.COM/SHOOTOUT

2022 SHOOTOUT SPONSORSHIPS DO YOU LOVE THE GUNS ‘N’ ROSES SHOOTOUT? HELP US MAKE IT EVEN BETTER! The Annual Guns ‘N Roses Shootout is one of the best-attended events by members of the Minot Association of Builders, and the event grows each year! Sponsors have a unique opportunity to get in front of fellow members for networking and a great evening on the range!

BULLET BACKER

ROSE WRANGLER

GRUB STAKER

OAKLEY OPENER

STATION SITUATION

$1000

$600

$450

$350

$250

EXCLUSIVE

EXCLUSIVE

LIMIT 2

EXCLUSIVE

LIMIT 7

One 5-person team

One 5-person team

(a $250 value!)

(a $250 value!)

Two non-shooter tickets to the event (a $50

Two 5-person teams

(a $500 value!)

Two non-shooter tickets to the event (a $50 value!)

value!)

Logo Recognition on Event Signage

Logo Recognition on Event Signage

Two non-shooter tickets to the event (a $50 value!)

Logo Recognition on Event Signage

Logo Recognition on Event Signage at Corresponding Station

Official Introduction to Audience during Dinner

Official Introduction to Audience during Dinner

Logo Recognition on Event Signage and in Food Service Area

Official Introduction to Audience during Dinner

Company Logo printed and posted as the sponsor for one of the trap shooting stations.

Opportunity to Present Team Prizes

Opportunity to staff the rose table during the event, providing a valuable networking experience

Official Introduction to Audience during Dinner

Opportunity to Present Annie Oakley Contest Prize

Company Logo Printed on Company Logo Printed on Company Logo Printed on Event Collateral and via Event Collateral and via Event Collateral and via email/newsletter/ email/newsletter/ email/newsletter/ website recognition website recognition website recognition

Company Logo Printed on Event Collateral and via email/newsletter/ website recognition

Opportunity to Present Promotional Items to Attendees (must provide approx. 80 items to be placed in gift bags)

Company Logo Printed on Event Collateral and via email/newsletter/ website recognition

EMAIL CONTACT@MINOTAB.COM OR CALL 852-0496 TO RESERVE YOUR SHOOTOUT TEAM AND SPONSORSHIP!

REALTORS IN THE NEWS

BROKERS 12

SIGNAL REALTY

REALTORS: Send us your news!

Brokers 12 would like to introduce our newest agent!

We want to know what is happening in your business, what you are doing in the community, and any trends in the housing market.

Name: Erica Klabunde Title: Realtor, Brokers 12 Real Estate Previous experience: 3 years as school principal, 8 years as teacher Hometown: Bottineau, ND

Submit content to:

contact@minotab.com

Contact info: 701-340-3072 Erica@Brokers12.com

C21 We are very excited to welcome Anna Sanchez Nolasco to our team and family at Century 21 Action Realtors.

Contact Anna for all your Real Estate needs!

MINOT ASSOCIATION OF BUILDERS

The MAB Homefront || 10 || Summer 2022

this fall

40 BELOW CORNER

UPCOMING 40 BELOW MEETINGS ————

UPCOMING EVENTS ————

July 19 | 11am

Service Project

Planning Meeting

Summer September 8

August 16 | 11am Planning Meeting

Homes & Hops Downtown Bar Crawl

September 20 | 11am

October (TBD)

Planning Meeting

The MAB Homefront || 11 || Summer 2022

Bags & Builders Cornhole Tournament

MINOT ASSOCIATION OF BUILDERS

MAB UPDATE

2022 education + networking In May, We welcomed Justin Otto from North Dakota Department of Environmental Quality to teach us about Radon and the prevalence of positive tests in our region.

He discussed the importance of testing, where this should fall during real estate transactions, and how/where to best install mitigation systems when elevated Radon levels are discovered A startling fact that was shared: 2 out of 3 homes in North Dakota have elevated Radon levels. Radon is a major health risk, so testing is quite important! To learn more, visit: https://deq.nd.gov/wm/radon/

We had a nice turnout at the MAB Candidate Forum in June. The purpose of this forum was to help out membership get to know our locale candidates participating in the election on June 14th. We had a nice turnout of informed and curious voters! Thank you to all who attended, and thank you again to Kayla Pulvermacher, CEO of the North Dakota Association of Builders for moderating the event.

We heard from candidates for Minot City Mayor, Minot City Council, Minot Public School Board, and Ward County Commission.

RECAP

FIND MORE INFORMATION AND PRE-REGISTER FOR FALL SESSIONS AT MINOTAB.COM/LUNCHANDLEARN

The annual City Leaders Luncheon was held in May—what a busy month it was! We had a nice meal together and enjoyed hearing from The City of Minot, Minot Parks, and the Minot Area Chamber EDC. Thank you to our guest speakers for sharing your knowledge and being so open to questions from our members.

ADDITIONAL CLASSES HELD THIS SPRING TO ENHANCE OUR MEMBERS’ KNOWLEDGE: >>MAB Code Review Class >>CPR/First Aid Training Certification

R

MINOT ASSOCIATION OF BUILDERS

The MAB Homefront || 12 || Summer 2022

CITY, COUNTY AND STATE MINOT BUILDING PERMITS | DOLLAR VOLUME

2022 (YTD)

2021

2020

2019

2018

2017

$45,621,500.00

$246,870,839.00

$49,355,446.00

$35,353,600.00

$214,213,48400

$43,849,463.00

MINOT BUILDING PERMITS | NUMBER OF UNITS

MINOT BUILDING PERMITS

1200 1000

598 363

191

292

181

200 0

Multi-Family

840

800 600 400

Single Family

1133

1056

2011

2012

2013

2014

209 95

60

2015

2

53

2016

38 2017

2

67 4

85 48

2018

2019

2020

68

84

9

2021

CITY OF MINOT BUILDING PERMITS APRIL 2022 BUILDING PERMIT TYPE

MAY 2022

JUNE 2022

NUMBER OF PERMITS

PERMIT VALUATION

NUMBER OF PERMITS

PERMIT VALUATION

NUMBER OF PERMITS

PERMIT VALUATION

Single Family Dwelling

4

$1,245,000.00

10

$2,226,000.00

2

$248,000.00

Townhouse/Duplex

2

$250,000.00

4

$494,000.00

Public Works & Utilities

1

$2,261,000.00

Amusement Social & Recreational

1

$50,000.00

1

$1,753,000.00

1

$3,025,000.00

1

$25,000.00

1

$5,000.00

4

$79,000.00

Move/Relocation (Residential) Structures other than Buildings Temporary Structures

2

$2,808,000.00

Service Station & Repair Garage

1

$1,650,000.00

Residential Remodel

1

$84,000.00

Offices, Banks & Professional Hospitals & Institutional

Residential Addition

4

$199,000.00

2

$37,000.00

Commercial Remodel

4

$706,000.00

6

$1,852,000.00

10

$4,303,000.00

Commercial Addition

1

$7,750,000.00

1

$400,000.00

1

$80,000.00

Accessory Buildings (Sheds)

2

$31,000.00

2

$12,000.00

Decks

4

$47,000.00

5

$87,000.00

Egress Windows

2

$2,000.00

2

$2,000.00

Mobile Homes

1

$6,000.00

1

$5,000.00

6

$166,000.00

4

$279,000.00

1

$81,000.00

1

$38,000.00

Detached Garages & Carports

3

$66,000.00

Attached Garages & Carports Demolition—Residential

1

$9,000.00

6

$120,000.00

Demolition—Commercial

1

$187,000.00

3

$125,000.00

Fire Department Construction Permit

TOTAL The MAB Homefront || 13 || Summer 2022

21

$14,755,000.00

1

$1,000.00

1

$1,000.00

43

$10,384,000.00

54

$9,635,000.00

MINOT ASSOCIATION OF BUILDERS

CITY, COUNTY AND STATE

From the Executive Director, MAY 2022 North Dakota Housing Finance Agency (NDHFA) provides low-cost mortgages and produces affordable multifamily housing by selling tax-exempt housing bonds that are commonly known as Mortgage Revenue Bonds (MRBs) and Multifamily Housing Bonds. The proceeds of these bonds are the catalyst for lower income homeowners and renters to be able to afford housing in both our urban and rural communities. As interest rates rise, and construction costs and inflation impact developers, buyers, and renters, having an experienced bond finance team will help NDHFA to weather these changing market forces.

The bond markets have been very volatile since the end of 2021. Rates in the U.S. Treasury and municipal bond markets have increased more than 1.6 percent, while mortgage rates have increased over 2.15 percent. The increases are in response to the Federal Reserve Bank indicating that they may increase short-term interest rates from almost zero percent at the beginning of 2022 to as much as 3 percent or more by the end of the year. In addition, the Federal Reserve Bank, which has been supporting the markets for the past two years by buying bonds and mortgages, has stopped making additional purchases and is reversing its position by becoming a seller of bonds and mortgages. All these measures are attempting to reduce the rate at which prices are rising.

Inflation in the United States is currently at the highest rate since the early 1980s. As these actions by the Federal Reserve Bank are implemented, the bond markets are expected to see continued volatility with bond and mortgage rates continuing to rise. While the mortgage rates offered by NDHFA and other housing finance agencies across the country will rise as well, the increase should be significantly less than the increases in rates from other sources of mortgage financing, increasing the benefit NDHFA brings to homebuyers and multifamily housing developers.

NDHFA’s internal bond team is comprised of four individuals, three of whom have more than 80 years of combined experience. Their reputation and the quality of the documents they produce makes NDHFA’s bond transactions highly desirable to investors. The agency recently sold $235 million of MRBs and had over $765 million in orders for the bonds.

The individual who heads up the team, NDHFA’s Chief Financial Officer Pat Nagel, was honored in April with the 2022 Lifetime Achievement Award at the Smith’s Affordable Housing Finance Conference. Recipients are recognized by their peers for the contributions they make to ensure housing is affordable to individuals and families.

Working alongside Pat for 36 years, I have benefitted from his expertise, and I have seen firsthand what it has meant to NDHFA, our partners and borrowers. The Smith’s award is a well-deserved recognition of his financial expertise and commitment to our agency, and it shows how fortunate North Dakota is to have had Pat make affordable housing his career.

Thomas Caine of Caine Mitter & Associates, a member of NDHFA’s bond counsel team, described Pat Nagel as unique among the senior staff at state housing finance agencies saying, “He has hands-on experience in more areas than any of his peers, including not only accounting and finance, but also mortgage servicing, mortgage securitization, financial modeling, computer programming and capital markets. With these skills, he has enabled NDHFA to act quickly to, respond to and take advantage of rapidly changing market conditions.”

NDHFA’s bond team has experienced markets crashing, high inflation, buyer uncertainty and federal government changes. While no one is sure how long the current storm will last, I am confident that NDHFA will continue to be a valuable resource for low- to moderate-income buyers and renters.

Congratulations, Pat, on your recent award; it is well deserved.

—Dave Flohr, NDHFA Executive Director

Source: NDHFA.org

MINOT ASSOCIATION OF BUILDERS

The MAB Homefront || 14 || Summer 2022

NDAB NEWS

Save the Date

CEO MESSAGE WHAT WILL THIS DO TO OUR INDUSTRY?

KAYLA PULVERMACHER NDAB CEO

As I write this article, I'm in Washington, DC watching Federal Reserve Chair Powell give his announcement of the Reserve's largest and most aggressive rate hike since 1994 on the nearest television. I share the same fear that you do: what will this do to our industry? What will our next year in the homebuilding industry look like? What do we have to do to be successful?

At the same time, I'm reminded of our recent North Dakota Primary election.

A substantial number of incumbents were challenged for their party endorsements and a noteworthy amount won those races. Combine those candidates with the amount of new candidates we have running and 2023 could see a significantly new Legislature.

It is imperative that your Building Association be involved in the legislative process on all fronts, and current events demonstrate that. Whether it be working to lessen burdensome regulations, advocating for legislation that will benefit the building industry or helping to elect pro-housing candidates, having your voice represented can only help to improve your business.

Think of it this way: How often do you get to sit down with your members of Congress and tell them about your experiences as a builder? As a member, you have the opportunity to do that. Being an active member of your professional organization just makes good business sense

AROUND THE STATE ———— July 12 BMHBA PAC Golf Tournament

July 20-21 NDAB Summer Board Meeting Location: Minot, ND

July 28 & August 22 HBA-FM Golf Outings

August 16 NDAB-PAC Golf Tournament Location: Bismarck, ND (Hawktree Golf Club)

August 4 BMHBA Sporting Clay Shoot

August 15 HBA-FM High Noon Shootout

August 16

Kayla Pulvermacher

NDAB-PAC Golf Tournament Location: Bismarck, ND (Hawktree Golf Club)

NDAB CEO

LUMBER

BUILDING MATERIALS

OPEN 7:30 AM TO 5:30 PM MON-FRI

INDEPENDENTLY OWNED & OPERATED FRANCHISE

The MAB Homefront || 15 || Summer 2022

COMPLETE LINE OF BUILDING MATERIALS FOR EVERY NEED MINOT ASSOCIATION OF BUILDERS

NDAB NEWS

NDAB-PAC GOLF TOURNAMENT RETURNS OPEN TO MEMBERS FROM ACROSS THE STATE The NDAB-PAC golf tournament has taken a few years off, but is coming BACK in 2022. The fundraising tournament will be held on Tuesday, August 16th at the beautifully challenging golf Hawktree Golf Club in Bismarck, ND. Registration is now open for the 4-person scramble tournament.

More information on registration + sponsorships can be found at www.ndabpacgolftourney.com

NDAB-PAC GOLF TOURNAMENT DATE: Tuesday, August 16th, 2022

LOCATION: Hawktree Golf Club - Bismarck, ND COST: $500/4 person team (option for $150/individual) REGISTRATION: 11:00 am SHOTGUN START: 12:00 pm DINNER & AWARDS: 5:00 pm

MINOT ASSOCIATION OF BUILDERS

The MAB Homefront || 16 || Summer 2022

NATIONAL NEWS

FEDERAL RESERVE ACCELERATES RATE HIKES Analysis by Dr. Robert Dietz, NAHB Chief Economist To fight persistent inflation, the Federal Reserve has committed to significantly cooling demand. This approach reflects a non-monetary policy failure to fix underlying supply-side challenges that are pushing up inflation. The Fed lacks policy tools to make these supply-side fixes, so it must rely on demand-side impacts to bring down inflation by reducing economic growth.

Consequently, at the conclusion of its June meeting, the Fed raised the federal funds target rate by 75 basis points, increasing that target to an upper bound of 1.75%. This is the largest increase for the funds rate since 1994 and is a clear response to elevated inflation data from May. Moreover, the Fed’s forward-looking projections indicate on a median participant basis an additional 205 basis points of tightening through 2023. Without convincing evidence of moderating inflation, the Fed is likely to continue to raise the target rate at each meeting by 50 basis points or more. The Fed’s target is a 2% inflation rate.

The Fed’s June statement also confirmed its existing plan to reduce its balance sheet, including net reduction of $35 billion of mortgage-backed securities a month when fully phased in. The lack of change for the balance sheet reduction plan is a positive element of today’s news for housing, as there was a risk of a planned faster pace, which would further increase mortgage interest rates.

Given signs of slowing economic activity, including six straight months of declines for home builder sentiment, a clear risk is that by falling behind the curve, the Fed will overshoot on tightening and bring on a recession as it fights inflation. This would not be the soft landing the Fed is attempting to orchestrate. Indeed, the NAHB economic forecast now includes a 2023 recession as financial conditions tighten. Chair Powell noted in his press conference that housing market conditions are slowing given higher mortgage rates.

The Fed notes that inflation remains elevated, citing the Ukraine war and global supply-chain issues, among other factors.

Their revised economic projections find slowing economic growth, with a GDP outlook for 2023 of 1.7%. This will be very difficult to achieve. The Fed’s unemployment projection sees that rate increasing to 4.1% through 2024. So even under this optimistic outlook, this increase for joblessness would qualify as a growth recession.

As this economic slowing occurs, the Fed’s projections indicates inflation will decline. Using the core PCE measure, the Fed sees a 4.3% rate for 2022, then 2.7% in 2023 and falling to 2.3% in 2024. This too will be difficult to achieve given the lagged impact on inflation from increasing residential rents, which materialize in inflation readings on a lagged basis when leases are renewed. This shelter impact on inflation is also a reminder that tightening interest rate conditions can affect supply, not just demand. Higher rents are due to a lack of housing supply. And higher interest rates will make it difficult to finance the development of additional housing supply.

NAHB PODCAST | IS A RECESSION COMING? Chief Lobbyist Jim Tobin welcomes SVP for Public Affairs and Communications Paul Lopez and Chief Economist Rob Dietz to the show to discuss whether a recession is on its way, and the implications of an economic slowdown.

The NAHB Housing Developments podcast can found through the following apps: Apple Podcast, Spotify, Google Podcasts, and Stitcher, or found at nahb.org/podcast

The MAB Homefront || 17 || Summer 2022

MINOT ASSOCIATION OF BUILDERS

NATIONAL NEWS It is important to note that there is not a direct connection between federal fund rate hikes and changes in long-term interest rates. During the last tightening cycle, the federal funds target rate increased from November 2015 (with a top rate of just 0.25%) to November 2018 (2.5%), a 225 basis point expansion. However, during this time mortgage interest rates increased by a proportionately smaller amount, rising from approximately 3.9% to just under 4.9%.

Previously, the Fed noted that inflation is elevated due to “supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.” While this verbiage may incorporate policy failures that have affected aggregate supply and demand, I do think the Fed should explicitly acknowledge the role fiscal, trade and regulatory policy is having on the economy and inflation as well.

Given today’s projections, we reiterate our policy recommendation with respect to any possibility of a soft landing. Clearly, elevated inflation readings call for a normalization of monetary policy, particularly as the economy moves beyond covidrelated impacts. However, fiscal and regulatory must complement monetary policy as part of this adjustment. Yet, many of these measures are simply beyond the Fed’s control.

For example, higher inflation in housing is due to a lack of rental and for-sale inventory and cost growth for building materials, lots and labor. Higher interest rates will not produce more lumber. A smaller balance sheet will not increase the production of appliances and materials. In short, while the Fed can cool the demand-side of the economy (reducing inflation and growth), additional output on the supply-side is required in order to tame the growth in costs that we see in housing and other sectors of the economy. And efficient regulatory policy in particular can help achieve this goal and fight inflation.

Source: NAHB’ Eye on Housing blog.

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