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All NCBIA Primary Members!!! Nominations are now being accepted for the NCBIA Board of Directors that need to be filled. Four 3-year directors are available (commitment beginning January 2021). Those considering a position should be able to attend all Board meetings that are held the second Wednesday of every other month at 5PM (subject to change if a conflict arises). Please email Executive Officer, Judie Docs at judie@ncbia.com

1. You now have the opportunity to share special discounts or “Hot Deals” with consumers who visit our website. Consumers can sign up for the Hot Deals eNewsletter to be notified each time a new Hot Deal is added to the site. Any website visitor can also search online directly for Hot Deals 24/7.

HOT DEAL! NEW WAY TO GENERATE LEADS FOR YOUR BUSINESS!! FREE FOR MEMBERS

2. Member-to-Member deals are also available, but only to members. These are viewable ONLY in the Member login area. Want to try it out? It's FREE forever!! You can enter your own through your member login area - OR - email Maria Sabala at maria. sabala.ncbia@gmail.com for help adding your HOT DEAL.


North Coast Building Industry Association (NCBIA) BUILDER newsletter is the official newsletter of the NCBIA and is published monthly by the NCBIA. The NCBIA is an affiliate of the Ohio Home Builders Association (OHBA) & the National Association of Home Builders (NAHB).

NCBIA Office

5201 Waterford Dr. Sheffield Village, OH 44035 Phone: 440.934.1090 info@ncbia.com | www.ncbia.com

NCBIA Staff

Executive Officer Judie Docs | judie@ncbia.com Executive Assistant LaBreeska Bellan | labreeskancbia@gmail.com Administrative Assistant Ashlyn Bellan | ashlynncbia@gmail.com Marketing Associate Maria Sabala | maria.sabala.ncbia@gmail.com

2020 NCBIA Officers

President Jeremy Vorndran, 84 Lumber Vice President Sara Majzun-Garwood, BCT Alarm Services, Inc.

Associate Vice President John Toth, Floor Coverings International Treasurer Steve Fleming, Shamrock Development Secretary Tim King, K. Hovnanian Homes - Ohio Division Immediate Past President Liz Schneider, Dollar Bank

2020 NCBIA Board of Directors

Dennis Willis, ActionCOACH TeamNEO Kelly Christy, Cleveland Custom Homes Mike Meszes, DRC Construction Dave Linna, Linna Homes & Remodeling Jason Rodriguez, Lorain County Joint Vocational School Mark Craig, Mark F. Craig, Esq. Jason Scott, North Star Builders Emily May Brunke, Northwest Bank Dave Weisenberger, Tusing Builders & Roofing Services

August 2020

Advertising Policy - The North Coast Building Industry Association reserves the right to reject advertising in the Builder newsletter based on content. Acceptance of advertising does not imply endorsement of the product or service advertised.

NCBIA Life Directors

Jeremy Vorndran, 84 Lumber Calvin Smith, Calvin Smith Builders Tom Caruso, Caruso’s Cabinets Bob Yost, Dale Yost Construction Liz Schneider Dollar Bank Mary H. Felton, Guardian Title Jack Kousma, Kousma Insulation Jeff Hensley, Lake Star Building & Remodeling Chris Majzun Sr., Majzun Construction Co. Chris S. Majzun Jr., Majzun Construction Co. Jim Sprague, Maloney + Novotny, LLC Randy Strauss, Strauss Construction Tom Lahetta, Tom Lahetta Builders, Inc.

2020 NAHB & OHBA Directors

These are our members who represent our local industry in Washington DC and Columbus.

Sr. NAHB Life Director

Randy Strauss, Strauss Construction

Ohio’s State Rep. to NAHB

Randy Strauss, Strauss Construction

OHBA Past Presidents Randy Strauss, 1996

2020 OHBA Trustees

Jeremy Vorndran, 84 Lumber Tim King, K. Hovnanian Homes – Ohio Division Jason Scott, North Star Builders

OHBA Area 2 Vice-President

Richard Bancroft, Bancroft Development

www.ncbia.com

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CONTENTS 14

NCBIA Hall of Fame Members

Terry Goode Inaugural Class 2001

Bucky Kopf Inaugural Class 2001

Robert Nickoloff Inaugural Class 2001

........ Hall

of

........

FAME North Coast Building Industry Association

Hall of Fame Nominating Form

Ernie Parsons Inaugural Class 2001

Calvin Smith Inaugural Class 2001

Dan Strauss Inaugural Class 2001

Jim Schmidt Randy Strauss Dale Yost Inaugural Class Inaugural Class Class of 2002 2001 2001

The North Coast BIA Hall of Fame was established to honor individuals who have made a lasting contribution to the housing industry through their work in building and development, public service and housing-related areas. To nominate an individual for Hall of Fame induction, you must be a member of the NCBIA in good standing, complete this form on both sides and return it to the NCBIA office by November 30, 2020.

Hall of Fame Candidate Name: Title: Company Name:

32

Robert Yost Class of 2002

Chris Majzun Class of 2003

Bill Perritt Class of 2003

Address: City/State/Zip: Phone

Gene Henes Class of 2004

John Sarnovsky Class of 2004

Mick Mackert Class of 2004

Nomination Submitted by: Company:

49

Return the completed form to: Hall of Fame Committee c/o NCBIA 5201 Waterford Dr., Sheffield Village, OH 44035 Phone: 440-934-1090

Phone

Chris S. Majzun, Jr. Andy Kerchmar Larry Franklin Class of 2005 Class of 2005 Class of 2004

LeRoy Forthofer Class of 2006

Ray Yunker Class of 2006

Mary Felton Class of 2009

Linda Kacher Class of 2009

Joe Scaletta Class of 2010

Rich Smothers Class of 2010

(continued on reverse side)


Table of Contents 6

Letter from the President

7

NCBIA Code of Ethics

8 Save the Dates 10 Executive Officer’s Report

18

Existing Home Sales Continue Record Rebound in July

21 OHBA Executive VP Column 22 Eye on the Economy: Surge in Home Construction, Lumber Prices

12 Circle of Excellence is Coming

22 Eye on the Economy: A Housing

Back!

Upturn as Concerns Grow for Lumber, Material Costs

14 Contact Your Member of

24

Congress on Soaring Lumber Costs

17 National Lieutenant Governors Association Recognizes Importance of Housing in Economic Recovery

NAHB Now: Nearly Half a Million Construction Workers Hired in June

26-27 IBS 2021 Registration Opens September 1

29

Thank You for Renewing! Sorry to See You Go!

31

Spike Update

32

Vacant Land Information

34

New Single-Family Home Size Leveling Off?

35

Builder Confidence Matches AllTime High on Record Traffic

36

NCBIA Calendar of Events

38

Legislative Review

40-48

Photo Gallery: Golf Classic 2020

49-50 Hall of Fame


LETTER FROM THE PRESIDENT

What Does it Really Mean TO BE IN THIS TOGETHER? This year we have spent lots of time dealing with the “new normal” and discussing how we are all “in this together.” But what does “in this together” really mean for us as members of the North Coast Building Industry Association? With over 275 members from over 200 different companies, we know that there is overlap in the services that are offered. We all well know that in this industry healthy competition between rival companies is not always a bad thing. It keeps you motived, passionate about what you do, and constantly working to make sure your customers receive the best possible service, so they do not stray to a competitor. But there comes a point when a little healthy competition crosses over the line to what can be considered more harmful territory. I understand that all of us are extremely passionate about the companies that we own, work for, or represent. They are how we make a living and support the communities that we reside in. But I want to remind you that at NCBIA events, meetings, or get-togethers, not only are you representing your company, you are also representing our membership and the association as a whole. The Code of Ethics for the association are shown on the next page. I encourage to read through those to see what we expect from our members. I have been in this association for over 20 years. I have become very close with lots of members in all different fields of the industry. Some of them are even major competitors of each other. But these guys have no problem working together on a common goal when it is called for. This is exactly what I mean when I say that we are In This Together. I firmly believe that members should be able to freely talk with other members in their field and seek advice on an issue they may be experiencing. We want the NCBIA to be a place where knowledge gets shared, friendships are formed, and the next generation of members can openly ask for help from the veterans in their field.

Jeremy Vorndran of 84 Lumber

We have so many up and coming members that have joined the last few years and I am so excited to see how each of them will help shape this association and help us grow into an even stronger force.

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We have so many up and coming members that have joined the last few years and I am so excited to see how each of them will help shape this association and help us grow into an even stronger force. In closing I just want to remind everyone to stay safe, be better, and wash your damn hands. #TeamNCBIA

www.ncbia.com

August 2020


NCBIA CODE OF ETHICS 1) Members must comply with State Attorney General and FTC advertising guidelines for industries. 2) Unusual persuasion in securing a Certificate of Completion prior to the completion of the work called for in the contract is unethical. 3) Imitation of trademarks, trade names, labels, brands, or other distinctive words, phrases, or marks of competitors, with the capacity or tendency of effect of misleading or deceiving the customer is unethical. 4) The defamation of competitors by falsely imparting to others dishonorable conduct, inability to perform contracts, questionable credit standings; or the false disparagement of the grade, quality, or manufacture of the products to be used by competitors is unethical. 5) A guarantee of less than a minimum period of one year on labor and material is unethical. Failure to extend to customers the terms of a manufacturer and/or the supplier guarantee or warranty for materials supplied is unethical. 6) The willful failure to perform all contractual obligations is unethical. 7) The failure to perform work in compliance with the local laws for the public health and safety is unethical. 8) Failure to take corrective action within the warranty period for a bad practice is unethical. 9) Member must maintain high standards of professional conduct and should encourage fellow members to do likewise. 10) Member must refrain from all illegal and morally reprehensible conduct. 11) The violation of this CODE OF ETHICS and/or federal, state, and local criminal statutes will result in review and possible nullification and termination of membership in the Association. 12) The CODE OF ETHICS is for the purpose of insuring the integrity of this Association and is not for the purpose of suppressing competition to restrain trade, fix or control price through combination or agreement, or otherwise injure, destroy or prevent competition. By signing the Association’s Application for Membership Form, we attest to the fact that we assume our responsibilities freely and solemnly, mindful that they are part of our obligation as members of this Association.

August 2020

www.ncbia.com

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Save the

Date!

August 29

2020 Softball Game & Picnic 1:00 - 6:00 PM Amherst Township Park 44786 Middle Ridge Rd., Amherst

September 9

Executive Committee 3:30 - 5:00 PM

Board of Directors 5:00 - 6:30 PM Via ZOOM

October 21

October General Membership Meeting & Election Night

Do you have some business news to share? Business anniversaries, accomplishments, awards, publications, etc.? Send to judie@ncbia.com. We want to hear from you!

5:00 PM Ahern's Banquet Center Avon Lake

*All meetings held at the NCBIA office unless otherwise shown.

Check the website at www.ncbia.com for upto-date changes, additions, and corrections to these events!

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www.ncbia.com

August 2020


UNLEASH YOUR TECHNOLOGY GREATNESS Technology matters to your business Start your Digital Transformation today IT INFRASTRUCTURE COPIERS & PRINTERS WIDE FORMAT PRINTING CONTENT MANAGEMENT ENERGY CONSULTING

START A CONVERSATION TODAY

Gary A. Morgan | 216-324-0327 | gmorgan@meritechinc.com Proud Supporter and Document Solutions Provider to NCBIA


EXECUTIVE OFFICER’S REPORT

Thank You ASSOCIATES! The next time you come to a NCBIA event, look around at your fellow members. Most of them will be associate members. They are essential to the home building process and help enable our industry to provide Americans with an unrivaled selection of quality homes. Our associate members are subcontractors, sales and marketing specialists, title and settlement experts, lawyers, people in the financial services industry, product suppliers and manufacturers, and many more who are essential to the challenging task of providing housing for a growing population. Associate members are also essential to the NCBIA, OHBA and NAHB, offering sponsorships, devoting countless hours at committee meetings and volunteering at special events, and strengthening our industry in the process. Most importantly, our associate members help broaden our perspective so that we can access issues more objectively in the context of our entire industry. Since 1981, September has been designated as Associate Member Appreciation Month, an annual celebration of Associate member contributions to the home building industry. Designating September as Associate Appreciation month is just one way of providing the much-deserved visibility and recognition to our invaluable Associate members. I urge all NCBIA members to get to know one another better, learn about each other’s businesses whenever possible, to do business with other members. by Judie Docs, CSP, MCSP, MIRM, CMP, CGP

Associate members are invaluable to our businesses and an essential part of our proud history, tradition, and spirit. I would like to personally thank our associates!

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Our association in strong when individual members are strong and doing business with other members is a great way to strengthen the association while ensuring that the people you work with understand the issues and concerns that affect your day-to-day operations. Associate members are invaluable to our businesses and an essential part of our proud history, tradition, and spirit. I would like to personally thank our associates!

www.ncbia.com

August 2020



Circle of Excellence IS COMING BACK! BY: SARA MAJZUN-GARWOOD VICE PRESIDENT

At the start of this year I was so beyond excited for all the big things we were going to roll out in 2020! But the world had other ideas and we have had to adapt to a much different way of life. With the drastic changes and the craziness that we are currently living with, we thought there was no better time than this year to bring back the Circle Of Excellence Awards! Many of you may remember the COE Awards from about 10 years ago. They are a great way to recognize our members on their achievements as well as see what great things have been done around our communities! We have revamped these awards and I am so excited to see all the wonderful entries we are going to get! The categories are as follows: • • • • • • • • • • • • • •

Builder of the Year Remodeler of the Year Associate of the Year Best Custom Home Best Production Design Best Landscaping Design Best Community Best Advertisement Best Supplier Best Kitchen Remodel Best Bathroom Remodel Best Basement Remodel Best Commercial Build Best Commercial Remodel

We have also changed how we are doing the eligibility for each entry. Normally, and in the years to come, the entries that are eligible will have to be from the year we are currently in. This year we are expanding that option! We have opened that window to the last 5 years! So, you or your company can submit any and all projects that were completed from January 1st 2015 to the deadline which will be December 1st 2020. Please watch your emails for more information regarding these awards and how you can enter one of your projects. Should you have any questions about the Circle of Excellence awards please do not hesitate to reach out to Judie or myself via phone, text, or email! I am so happy that we are bringing back this exciting venture for the association and I cannot wait to see all of the wonderful things that have been built in our area! #TeamNCBIA

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www.ncbia.com

August 2020


Special Association Discount for the North Coast Building Industry Association

SuperFleet Mastercard®

Association Fueling Program A fuel card program designed with associations in mind. EARN AN ADDITIONAL 15¢ PER GALLON!†

• Save 5¢ per gallon at Speedway locations • Over 2,700 fueling locations in the U.S. • Over 175,000 locations nationwide that accept Mastercard cards* • Custom card controls and increased security • Online reporting and account management

CUSTOMER NAME VEHICLE DESCRIPTION VEHICLE IDENTIFICATION

Call Holden Moll at 1-760-918-5933 or email holden.moll@fleetcor.com to start earning your association savings! Earn Speedy Rewards on eligible purchases at Speedway.

Be sure to reference the North Coast Building Industry Association for your special 15¢ discount.

†Limited time offer valid for new Speedway SuperFleet MasterCard applications received from 1/1/2020 through 12/31/2020. New approved accounts will earn 15 cents per gallon rebate on Speedway fuel purchases in the first three months after account setup. Rebates are cents per gallon based on the number of gallons purchased at Speedway locations per calendar month. The maximum promotional rebate in any one-month period, regardless of billing terms, is $300. Rebates are subject to forfeiture if account is not in good standing. The SuperFleet Mastercard® is issued by Regions Bank, pursuant to a license by Mastercard International Incorporated. Mastercard is a registered trademark of Mastercard International Incorporated. *Fees may apply


Contact Your Member of Congress on Soaring Lumber Costs

N

AHB is seeking prompt action from President Trump and the Administration regarding soaring lumber prices and supply shortages that are harming the housing industry. Contact your member of Congress and have them speak directly with the Administration regarding lumber prices and lumber shortages.

CLICK HERE

Or visit: http://capitolconnect.com/builderlink/

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www.ncbia.com

August 2020


Build savings with a special offer for NAHB members. Register now and save 2%** on your Lowe’s® Accounts Receivable (LAR) or Lowe’s® Business Accounts (LBA) purchases. LowesForPros.com/NAHB

for NAHB members

HOW TO APPLY

Download an application at

LowesForPros.com/NAHB. *5% Discount: Subject to credit approval. Get 5% off your qualifying purchase or order charged to your Lowe’s® Business Account or Lowe’s® Accounts Receivable. Valid for purchases in US stores, on Lowes.com and LowesForPros.com. Customer must pay applicable sales tax. 5% discount will be applied after any other applicable discounts. Offer can’t be combined with other creditrelated promotional offers. Can’t be used in conjunction with: any other coupon; Lowe’s military discount; Lowe’s employee discount; Lowe’s low price guarantee; Lowe’s volume or special discount programs such as, but not limited to “QSP”; manager discretion price adjustments; contractor packs; or any other offer which expressly states it can’t be combined with any other discount credit offer. Can’t be used in conjunction with the following products and/ or services: extended protection/replacement plans; shipping, delivery or assembly charges; fees or taxes; gift cards; Dacor®, ICON®, Fisher & Paykel®, Monogram, Smeg or Liebherr appliances (some brands not available in all markets/stores), Weber or Kichler products. Excludes all Lowe’s® Canada Credit products. We reserve the right to discontinue or alter these terms at any time. ©2018 Lowe’s. LOWE’S and Gable Mansard Design are registered trademarks of LF, LLC. ©2018 NAHB. All rights reserved.

StephensDirect_LC_NAHB Member Advantage Brochure Ad 11-10-17.indd 2

Newly opened accounts that fax the downloaded application to 877-896-3839 will be automatically enrolled for additional 2%** savings. **2% Discount: Cannot be combined with any other statement discount. To be eligible for the 2% discount, you must register your National Association of Home Builders affiliation and Lowe’s® Accounts Receivable (LAR) or Lowe’s® Business Account (LBA) account per the instructions provided, make a purchase with your LAR or LBA account by 12/31/18 and comply with all terms and conditions of your LAR or LBA account. Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement. 2% discount will be automatically deducted from your statement at billing (discount will not take effect until Synchrony Bank fully processes your account registration). Excludes Lowe’s® Advantage Card, Lowe’s® Visa® Accounts, Lowe’s Business Rewards Card from American Express and all Lowe’s® Canada Credit products. Account must remain open, be in good standing and not become delinquent at the time the statement credit is applied. *,**Offers valid in US stores, on Lowes.com and LowesForPros.com. Discounts applicable to commercial purchases only. Offers/ discounts provided by Lowe’s and not Synchrony Bank. Subject to credit approval. Lowe’s reserves the right to discontinue or alter these terms at any time.

11/10/17 12:32 PM


Find out more at the link below: https://mynpp.com/association/north-coast-bia

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www.ncbia.com

August 2020


National Lieutenant Governors Association Recognizes Importance of Housing in Economic Recovery

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he National Lieutenant Governors Association issued a resolution recognizing that policymakers can help foster a housingled economic recovery during its 2020 virtual annual meeting on July 29-30. The resolution was co-sponsored by Lieutenant Govs. Mike Cooney (D-Mont.) and Matt Pinnell (R-Okla.). “The construction of housing, whether rental properties or new homes, is vital to economic stability as our nation looks to rebuild from COVID-19,” said Pinell. “The housing industry is a job creator, GDP grower, and overall vital part of our economic portfolio.” “Montanans and families across the country need an affordable place to call home now more than ever,” said Cooney. “Home builders are critical to responding to the ongoing affordable housing crisis that’s been made worse by the COVID-19 pandemic. I join lieutenant governors across the country in working toward policies that create more jobs and more affordable, quality homes, and recognize that building more affordable housing builds stronger communities.” The resolution stated that the nation faces a shortfall of more than 1 million homes to affordably house residents and that home builders across the nation have moved swiftly to adopt new safety and health standard in the wake of the COVID-19 pandemic so they can remain safely on the job and provide much-needed housing. Per the resolution: “The National Lieutenant Governors Association affirms that home construction must continue to be an integral aspect of the nation’s economic recovery. “Be it further resolved that the National Lieutenant Governors Association recommends that as the nation continues to recover from the coronavirus-induced shutdown, state and local elected officials should support the housing sector by acting in a swift and responsible manner to approve permit applications, inspections, and closings to prevent unnecessary bottlenecks in the home building process. “Be it further resolved that the National Lieutenant Governors Association believes that it is imperative local building departments receive proper funding so that builders and home buyers do not experience delays and increased fees that could worsen the current housing shortage and exacerbate the housing affordability crisis.” August 2020

www.ncbia.com

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EYE ON HOUSING

Existing Home Sales Continue Record Rebound in July

B

BY FAN-YU KUO

oosted by historically low mortgage rates, existing home sales, as reported by the National Association of Realtors (NAR), posted another record increase in July and surpassed prepandemic levels. Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, soared 24.7% to a seasonally adjusted annual rate of 5.86 million in July, the largest monthly gain on record and the highest level since December 2006. On a year-over-year basis, sales were 8.7% higher than a year ago. The first-time buyer share decreased to 34% in July from 35% last month but is higher than a year ago (32%). However, price gains threaten this share in the future. The July inventory level fell to 1.5 million units from 1.54 million units in June and is down from 1.9 million units a year ago. At the current sales rate, the July unsold inventory represents a 3.1-month supply, down from 3.9-month in June and 4.2-month a year ago. This low-level supply of resale homes is good news for home construction. Homes stayed on the market for an average of just 22 days in July, down from 24 days last month and 29 days a year ago. In July, 68% of homes sold were on the market for less than a month. The July all-cash sales share was 16% of transactions, equal to last month but down from 19% a year ago. Despite the recent fluctuation in sales, home prices remained strong. The July median sales price of all existing homes was $304,100, up 8.5% from a year ago, representing the 101st consecutive month of year-over-year increases. This is also the first time national median home price reached $300,000 level. The median existing condominium/co-op price of $270,100 in July was up 6.4% from a year ago. Regionally, all four regions saw double-digit month-over-month gains for existing home sales in July, ranging from 19.4% in the South to 30.6% in the Northeast. On a year-over-year basis, sales grew in the Midwest, South and the West (10.3%, 12.6% and 7.8% respectively), while sales declined 5.9% in the Northeast. Though sales have picked up, rising home prices driven by low inventory and elevated jobless claims could be a bottleneck for future home sales. More listings and home construction are needed to meet this rising demand. page 18

www.ncbia.com

August 2020


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Through NAHB, register for a FREE Amazon Business account and gain access to the following features: •

Business-only pricing and products

Purchasing approvals and workflows Improved spending visibility Multiple payment options

• •

Create a FREE account amazon.com/NAHB Already have an Amazon Business account? Visit amazon.com/shop/NAHB


T R E AT Y O U R S E L F Make the most of your next trip with a complimentary upgrade when you use coupon # UUGA037. Plus, receive up to 25% off base rates with AWD # G572900. Visit avis.com/nahb or call 1-800-331-1212.

Terms and Conditions: Offer valid for a one time, one car group upgrade on an intermediate (group C) through a full-size four-door (group E) car. Maximum upgrade to premium (group G), excluding intermediate SUV (group F). Offer valid on daily, weekend, weekly and monthly rates only. The upgraded car is subject to vehicle availability at the time of rental and may not be available on some rates at some times. All taxes, fees (including but not limited to Air Conditioning Excise Recovery Fee, Concession Recovery Fee, Vehicle License Recovery Fee, Energy Recovery Fee, Tire Management Fee, and Frequent Traveler Fee) and surcharges (including but not limited to Customer Facility Charge and Environmental Fee Recovery Charge) are extra. Optional products such as LDW and refueling are extra. Valid at participating Avis locations in the contiguous U.S., Puerto Rico, U.S. Virgin Islands and Canada. One coupon per rental. A 24-hour advance reservation is required. May not be used in conjunction with any other coupon, promotion or offer. Upgrade will be applied at vehicle pick-up time. Renter must meet Avis age, driver and credit requirements. Minimum age may vary by location. An additional daily surcharge may apply for renters under 25 years old. Fuel charges are extra. Rental valid through December 31, 2019. Š2018 Avis Rent A Car System, LLC


OHBA EXECUTIVE VP COLUMN

RUMBLINGS at the Statehouse Yes, there has been a lot of news coming from the statehouse. Daily briefings from the governor and department of health regarding COVID. Endless streams of information how to protect yourself and how to protect your employees. Business closures and safety mandates. Wearing masks; it all continues. Then protestors, turned thugs, desecrated the statehouse. Police warned not to come downtown as they could not protect everyone. A congresswoman was tear gassed; a mayor capitulated to the mob over the police. The statehouse was covered with thousands of red painted handprints, adorned with broken windows and profanity written on its columns. Recently, the FBI arrested the Speaker of the House and a handful of lobbyists based on an 82-page complaint which easily could have been a script for a novel. The complaint outlined a pay to pay scheme to assist (or bail out) struggling nuclear power plants owned by a Northeast Ohio Electric Utility. All of this was legally defined as a criminal “enterprise” which is a RICO term used when taking down organized crime. The Ohio House of Representatives home to a criminal enterprise! No question, all are innocent at this point. What comes next will be the lurid details outlining a quid pro quo. No small potatoes with the amount the supposed enterprise spent to achieve their enterprise goals—60 million plus dollars. Yes, 60 million (six zeroes) $$$. A new speaker has already been elected and reform movements are afoot. All good of course though this will distract attention as the investigation continues. The federal district attorney has warned they will be knocking on doors, issuing subpoenas and the like as they take on corruption in the capitol city. The new House Speaker will be rearranging leadership posts and committee chairs. In sum, there is a lot going on here. We are certain OHBA is not involved. We do not operate with dark money, have never participated in any such enterprise and advocate for production of affordable housing. As all the distractions continue, we remain committed to our housing goals and objectives. For me, just can’t get my head around 60 million dollars. Ohio Home Builders Association Toll Free- 800/282-3403

by Vincent J. Squillace, CAE, OHBA Exec. VP

We are certain OHBA is not involved. We do not operate with dark money, have never participated in any such enterprise and advocate for production of affordable housing.

August 2020

www.ncbia.com

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EYE ON THE ECONOMY

Surge in Home Construction, Lumber Prices

A Housing Upturn as Concerns Grow for Lumber, Material Costs

R

esidential construction is leading the economy as housing demand remains strong and supply is tight. Home builder confidence, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), increased in August to a level of 78, which matches an all-time high in the 35-year history of the series. In particular, the August HMI surged on gains for buyer traffic, which continues to be strong because of low interest rates, a renewed focus on the importance and role of housing, and a shift in demand to the suburbs, exurbs and other lower-density communities. Consistent with the rise in the HMI, single-family housing starts posted solid gains in July, increasing 8% to a 940,000 annualized rate. Although still below the peak annual rate of single-family construction (1.034 million reached in February), the expansion for home building since April has left single-family construction up 1% on a year-to-date basis. Moreover, permits are up almost 6% as additional construction is expected. Multifamily building also rallied in July, although multifamily permits are down more than 4% as demand is shifting from rental to for-sale housing markets. Despite the strength for the HMI, risks remain for the housing sector. The top supply-side challenge is a corresponding surge for lumber prices, which have now increased more than 110% since mid-April. NAHB estimates that these recent gains have boosted typical new single-family home prices and apartment prices by approximately $14,000 and $5,000, respectively. Without increased domestic production and reductions in Canadian tariffs on softwood lumber, these higher input prices will slow the market. Another macro risk remains the health of the overall labor market. There was some concern that tightening of virus-related restrictions in the South would stall the economic recovery, but this proved to be untrue. Data from the Bureau of Labor Statistics found 1.8 million net jobs were created in July, reducing the unemployment rate to 10.2%. Home building employment expanded by 24,000 for the month, while non-residential construction jobs declined by 4,000 as the two parts of the construction industry move in opposite directions. In additional good news, the pace of first-time jobless claims fell below 1 million for the first time since March for the week of Aug. 8. These indicators show that the economy is healing, provided additional lockdowns do not derail its progress. Job growth is positive for housing demand, particularly as risks increase regarding renter payment rates in the fall

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BY ROBERT DIETZ

T

he remarkably strong data for home construction has continued in recent weeks. The NAHB/Wells Fargo Housing Market Index (HMI), a measure of single-family builder sentiment, returned to its pre-recession level of 72, up from a low of 30 in the spring. The quick advance of the HMI over the course of the summer is a strong indicator of an acceleration of single-family construction, which is required to meet ongoing solid demand for housing. The annualized pace of single-family permits increased 12% in June, according to Census/HUD data. While single-family starts are down for 2020 due to government-imposed lockdowns and the economic fallout of the COVID-19 crisis, the decline is smaller than what was forecast. Single-family starts are down just 1.3% compared to the first half of 2019. However, this small decline is partly due to weak construction data at the start of 2019. Nonetheless, soft production levels in the spring stemming from the pandemic have left the total number of single-family homes currently under construction near a three-year low of 497,000 homes. While single-family construction data have come in strong, multifamily permits are down 14% thus far in 2020 for properties with five or more units, with additional weakness expected due to concerns over future rent payments. In contrast, the remodeling market is weathering the storm well. In fact, the NAHB Remodeling Market Index (RMI) registered a score of 73 for the second quarter, reflecting positive market sentiment in the home improvement sector due to a growing focus on the importance of home for most families as a place to live, work and study. As we have been forecasting since March, housing should be a bright spot for the economy, particularly given historically low interest rates and the increase in housing demand for low density communities. However, risks remain: At the macroeconomic level, layoffs continue to be elevated, with 1.3 million new job losses reported for the week ending on July 4. And ongoing, continuing jobless claims imply an unemployment rate of approximately 13%. For builders, access issues and delivery delays for building materials are increasingly yielding higher prices. In particular, lumber prices continue to climb, reaching an average price of more than $550 per thousand board feet in mid-July — the highest since the tariff-induced runup of prices in 2018. While sawmill employment increased in late spring in the U.S., a resolution of the U.S.-Canadian softwood lumber dispute would more significantly boost housing, and in turn, the overall economy.

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August 2020


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1-800-368-2734 geico.com/disc/nahb Some discounts, coverages, payment plans and features are not available in all states or all GEICO companies. GEICO contracts with various membership entities and other organizations, but these entities do not underwrite the offered insurance products. Discount amount varies in some states. One group discount applicable per policy. Coverage is individual. In New York a premium reduction may be available. GEICO may not be involved in a formal relationship with each organization; however, you still may qualify for a special discount based on your membership, employment or affiliation with those organizations. GEICO is a registered service mark of Government Employees Insurance Company, Washington, D.C. 20076; a Berkshire Hathaway Inc. subsidiary. GEICO Gecko image Š 1999-2016. Š 2016 GEICO


NAHB NOW

NEARLY HALF A MILLION

Construction Workers Hired in June

A

BY ROBERT DIETZ

fter an accelerated pace of layoffs in March and April

stemming from the COVID-19 pandemic, construction sector hiring roared back in May and posted a slower but solid pace in June, according to the latest data from the BLS Job Openings and Labor Turnover Survey (JOLTS). The construction sector hired 679,000 workers in May, followed by 498,000 in June. By comparison, 423,000 construction workers were hired in June 2019. In May, the construction hiring rate [the number of hires (679,000) divided by total employment and sector job openings] increased to 9.7%, after a subdued 3.7% rate in April. This was the strongest rate of hiring in the history of the JOLTS data. In June, the rate was 6.9%, slower than May but still well above average. This pace of rehiring, combined with weakness in the nonresidential sector, reduced the open jobs rate to just 3.3% in June, with a total of 245,000 open construction sector jobs. The open job count was 325,000 a year ago. However, builders continue to cite limited access to skilled construction workers as a concern as they seek workers to undertake more home construction and remodeling.

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1-800-368-2734 geico.com/disc/nahb Some discounts, coverages, payment plans and features are not available in all states or all GEICO companies. GEICO contracts with various membership entities and other organizations, but these entities do not underwrite the offered insurance products. Discount amount varies in some states. One group discount applicable per policy. Coverage is individual. In New York a premium reduction may be available. GEICO may not be involved in a formal relationship with each organization; however, you still may qualify for a special discount based on your membership, employment or affiliation with those organizations. GEICO is a registered service mark of Government Employees Insurance Company, Washington, D.C. 20076; a Berkshire Hathaway Inc. subsidiary. GEICO Gecko image Š 1999-2016. Š 2016 GEICO


Thank You for Renewing! Chris Collins, Carter Lumber Lisa Matuszak, First Federal Savings of Lorain John Toth, Floor Coverings International Eddie James, James Home Construction, LLC Douglas Gerber, Landscaping by Gerbers, LLC Craig Snodgrass, Lorain County Auditor Debra Seeley, Third Federal

Sorry to See You Go! Pete Mueller, Rite-Rug David Sliman, Sliman Lumber Co.

August 2020

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LIFE SPIKE (25-49 SPIKE CREDITS) Jeremy Vorndran.......... 84 Lumber..................................................... 41.50 Liz Schneider................ Dollar Bank................................................... 35.00 Steve Schafer................. Schafer Development.................................. 30.50 John Daly....................... Old Republic Title........................................ 26.00 BLUE SPIKE (6-24 SPIKE CREDITS) Jason Higgins................ Sunnyside Chevrolet................................... 19.00 Michelle Nowlin........... American Eagle Mortgage.......................... 16.50 Ken Cassell.................... Cassell Construction.................................... 13.50 Chris Collins................. Carter Lumber Company........................... 13.50 Jeff Lugar....................... ABC Supply Co............................................ 13.00 Keith Martin.................. MBD Homes................................................. 10.00 Mike Warden................. Chemical Bank............................................. 10.00 John Blakeslee............... Blakeslee Excavating................................... 9.00 Dave LeHotan............... All Construction Services........................... 7.00 Ashley Oates................. Cambria USA................................................ 6.50 Mike Chambers............ Charles, Morgan & Company.................... 6.50

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August 2020

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USING THE PRIVATE OFFER FOR NAHB MEMBERS IS EASY: 1. Get your NAHB proof of membership. 2. Visit your local Chevrolet, Buick or GMC dealer and mention this Private Offer. 3. Select an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership. For even more value, combine this offer with the National Fleet Purchase Program and Business Choice Offers. For full details on the Private Offer, NAHB members should visit nahb.org/gm. Example offer for NAHB members who are business owners purchasing a 2020 Chevrolet Silverado 2500 HD Crew Cab 1LT 4WD.

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New Single-Family Home Size Leveling Off? BY ROBERT DIETZ

N

ew single-family home size trended lower during the second quarter 2020 at the beginning of what we are forecasting will be a pivot to larger home size over the next two years. According to second quarter 2020 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area ticked down to 2,264 square feet. Average (mean) square footage for new single-family homes decreased to 2,458 square feet. On a less volatile one-year moving average, the tentative beginning of a leveling off of new singlefamily home size can be seen on the graph above. Since Great Recession lows (and on a one-year moving average basis), the average size of new single-family homes is now less than 5% higher at 2,482 square feet, while the median size is less than 8% higher at 2,265 square feet. The post-Great Recession increase in single-family home size was consistent with the historical pattern coming out of downturns. Typical new home size falls prior to and during a recession as home buyers tighten budgets, and then sizes rise as high-end homebuyers, who face fewer credit constraints, return to the housing market in relatively greater proportions. This pattern was exacerbated during recent years due to market weakness among firsttime homebuyers and supply-side constraints in the building market. However, declines in size over recent years were a reflection of builders adding more entry-level homes into inventory. Going forward we expect a different post-recession pattern. Home size is expected to level off and then increase, given a shift in consumer preferences for more space due to the increased use and roles of homes (for work, for study) in the post-Covid-19 environment.

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BUILDER CONFIDENCE Matches All-Time High on Record Traffic BY ROBERT DIETZ

I

n a sign that housing continues to lead the economy forward, builder confidence in the market for newly-built single-family homes increased six points to 78 in August, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI now stands at its highest reading in the 35-year history of the series, matching the record that was set in December 1988. The demand for new single-family homes continues to be strong, as low interest rates and a focus on the importance of housing has stoked buyer traffic to all-time highs as measured on the HMI. Singlefamily construction is benefiting from low interest rates and a noticeable suburban shift in housing demand to suburbs, exurbs and rural markets as renters and buyers seek out more affordable, lower density markets, as seen in the separate NAHB HBGI. However, the V-shaped recovery for housing has produced a staggering increase for lumber prices, which have more than doubled since mid-April. Such cost increases could dampen momentum in the housing market this fall, despite historically low interest rates.

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All the HMI indices posted gains in August. The HMI index gauging current sales conditions rose six points to 84, the component measuring sales expectations in the next six months increased three points to 78 and the measure charting traffic of prospective buyers posted an eight-point gain to reach its highest level ever at 65. Looking at the three-month moving averages for regional HMI scores, the Northeast jumped 20 points to 65, the Midwest increased 13 points to 63, the South rose 12 points to 71 and the West increased 15 points to 78.

August 2020

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North Coast Building Industry Association

2020

EVENTS NOVEMBER

SUBJECT TO CHANGE AUGUST Softball Game & Picnic Amherst Township Park, Amherst Township 1:00

[SPIKE APPRECIATION MONTH]

MEMBERSHIP EVENT

DECEMBER

[ASSOCIATE MEMBER APPRECIATION MONTH]

Executive Committee & Board Meeting 3:30 & 5:00

Labor Day (Office Closed) Executive Committee & Board Meeting 3:30 & 5:00

BOARD

New Year’s Eve (Office Closed)

[CAREERS IN CONSTRUCTION MONTH]

Revised 8/7/2020

Christmas Eve (Office Closed) Christmas Day (Office Closed)

OCTOBER

General Membership Meeting & Election Night 5:00 (More info to come)

STATE EVENT

Thanksgiving (Office Closed)

SEPTEMBER

NAHB Fall Leadership Meeting Kansas City, Missouri

OHBA Fall Board of Trustees Meeting Hilton Easton, Columbus

NATIONAL EVENT

MEMBERSHIP EVENT

BOARD


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LEGISLATIVE REVIEW

AUGUST 10, 2020 REPORT #12 OHIO HOUSE VOTES HOUSEHOLDER OUT; REP. CUPP (R-LIMA) NEW SPEAKER OF THE HOUSE During the last week of July, the House 55-38 floor vote installed Rep. Bob Cupp (R-Lima) as speaker. The Republican caucus sought to cross the 50-vote threshold to elect a speaker without the support of Democrats, who throughout the day said they remained disenchanted with the prospect of backing either Republican. In the end, Rep. Cupp narrowly defeated Rep. Butler in a caucus vote, according to members, prompting most of the latter's supports to join the Cupp camp. All Democrats voted against Rep. Cupp on the floor as did three Republicans: Rep. Tom Brinkman of Cincinnati, Rep. Bill Dean of Xenia, and Rep. Candice Keller of Middletown. Rep. Cupp said after session he plans to discuss his next moves with the caucus, including whether and how to replace the leadership slate assembled by Rep. Householder. Details are forthcoming on whether there will be new committee chairs named, and who Cupp will place on his leadership team.

LAND DEVELOPMENT ISSUES UPDATE OHBA ERAC Appeal: After filing an appeal with ERAC over OEPA’s recent issuance of a new General Permit for impacts to ephemeral streams, OHBA is scheduled to have its preconference hearing later this week. OHBA plans to raise several key issues during the appeal process. During the rule adoption process earlier this summer, the agency admitted including many grey areas in practical application of the permit, but continued forward, regardless, blaming a June 22nd deadline when the new federal navigable waters rule became effective. OHBA is one of three other trade groups filing an appeal with ERAC, hoping to get another chance to bring concerns and potentially some relief, as a result. MS4 Draft General Permit Renewal: OEPA held a virtual information session last week on the proposed changes to the MS4 Permit currently out for public notice. OHBA is collecting information on potential concerns and specific changes which may have a negative impact on builders and developers. Please visit the following website to view documents associated with the draft general permit: https://epa.ohio.gov/dsw/storm/index OHBA is currently reviewing further. Let us know if you have any comments or concerns ASAP (800)282-3403.

Ohio Home Builders Association Toll Free- 800/282-3403

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GOLF CLASSIC 2020

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Thank you, Sponsors!!

2020 SPONSORS PRESENTING SPONSORS

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DONATIONS Cigars Guardian Title

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NCBIA Hall of Fame Members

Terry Goode Inaugural Class 2001

Bucky Kopf Inaugural Class 2001

Robert Nickoloff Inaugural Class 2001

........ Hall

of

........

FAME North Coast Building Industry Association

Hall of Fame Nominating Form

Ernie Parsons Inaugural Class 2001

Calvin Smith Inaugural Class 2001

Dan Strauss Inaugural Class 2001

Jim Schmidt Randy Strauss Dale Yost Inaugural Class Inaugural Class Class of 2002 2001 2001

The North Coast BIA Hall of Fame was established to honor individuals who have made a lasting contribution to the housing industry through their work in building and development, public service and housing-related areas. To nominate an individual for Hall of Fame induction, you must be a member of the NCBIA in good standing, complete this form on both sides and return it to the NCBIA office by November 30, 2020.

Hall of Fame Candidate Name: Title: Company Name:

Robert Yost Class of 2002

Chris Majzun Class of 2003

Bill Perritt Class of 2003

Address: City/State/Zip: Phone

Gene Henes Class of 2004

John Sarnovsky Class of 2004

Mick Mackert Class of 2004

Nomination Submitted by: Company:

Return the completed form to: Hall of Fame Committee c/o NCBIA 5201 Waterford Dr., Sheffield Village, OH 44035 Phone: 440-934-1090

Phone

Chris S. Majzun, Jr. Andy Kerchmar Larry Franklin Class of 2005 Class of 2005 Class of 2004

LeRoy Forthofer Class of 2006

Ray Yunker Class of 2006

Mary Felton Class of 2009

Linda Kacher Class of 2009

Joe Scaletta Class of 2010

Rich Smothers Class of 2010

(continued on reverse side)


NCBIA Hall of Fame Nominating Form (continued) If you want to check on the criteria for your nominee, please contact the NCBIA office at (440) 934-1090.

Hall of Fame Core Criteria

Use additional sheets as needed and please type information when possible.

~Longevity of Membership - At least 10 years of NCBIA membership ~Committee work - Must have served on 7 (seven) committees during time of membership and chaired 1 (one) ~Directorships and offices held - 5 (five) year minimum ~Spike Status - Must have achieved Life Spike Status ~Community Involvement - Involvement defined as something that takes a time commitment not just a monetary one ~Promotion of Industry and Association - E.g. speaking engagements, home show participation, JVS liaison, use of logo in advertising, etc.

Member from

year

to

year

.

List committees &/or task forces that nominee has served on and indicate chair positions as they apply. committee name

Ex. Clambake

years

chairman check if yes

2018

Other Criteria Considered ~OHBA and/or NAHB involvement ~Sponsorships (e.g. sponsorship program or event sponsorships) ~Task Force Involvement (e.g. Expansion Development Task Force) ~Special Stories/Circumstances (e.g. radio show, 24-hour house)

List NCBIA offices held

~Awards received (NCBIA & others)

office/directorship

years

~Complaints or lack thereof (NCBIA records will be checked for complaints)

List OHBA and/or NAHB involvement

Spike Status

Sponsorships

Industry & Community Involvement

Awards Received (NCBIA and others) Special Stories or Circumstances that are pertinent Summary Statement: I believe that the NCBIA Hall of Fame because...

should be named to


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1. Based on the average of VIO vs. New Registrations for each model year using IHS Markit Data as of September 1, 2019 for Model Years 1988-2019. 2. When properly equipped. See dealer for details. 3. When equipped with the 5.7L HEMI® V8 engine with eight-speed automatic transmission. 4. Available on select models. Please see dealer for more details and complete eligibility requirements. This program is available only to NAHB members and member company employees, and immediate family members living in the same household residing in the 50 United States, the District of Columbia and Guam, but such availability is subject to change without notice. 5. On The Job incentives apply only to NAHB members and member company employees. NAHB members and member company employees: see dealer for On The Job incentive details, program rules, and eligibility requirements. On The Job is a retail incentive program; see your dealer for official program rules. Offer ends 1/2/2021. Inquire about eligibility by calling 877-ONTHEJOB (877-6684356) or by logging on to fcausfleet.com. ©2020 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram and HEMI are registered trademarks of FCA US LLC FIAT and ALFA ROMEO are registered trademarks of FCA Group Marketing S.p.A., used with permission.