Chalk Line July/August 2014 Edition

Chalk Line July/August 2014

MAGAZINE

Make Your Membership Work for You

INSIDE THIS ISSUE 2014 OMB AUCTION EFFECT OF RAISING THE COST OF HOUSING MEMBERSHIP STORIES

NATIONAL REACH. LOCAL EXPERTISE.

Whether you’re a production builder, custom builder or remodeler, we have you covered. At ProBuild, you can expect professional, consultative service from our client representatives and responsive, efficient performance from our operations team. Interested in building a more energy efficient, comfortable home? Ask a sales representative about our ProBuild High Performance System, a blend of building science and advanced building techniques.

SHELTON 114 E CEDAR STREET | 360.426.2611

OLYMPIA 1830 SW BLACK LAKE BLVD | 360.754.0300

CABINETS  LUMBER  DOORS  ENGINEERED WOOD ROOFING  SIDING & TRIM  WINDOWS

www. probuild.com

CONTENT FEATURE

Chalk Line JULY/AUGUST 2014

PAGE 6-7 MEMBERSHIP WORKS IF YOU WORK YOUR MEMBERSHIP Read how members have utilized membership with Olympia Master Builders to build their businesses.

Guest Columnists: Lenny Greenstein, Lacey City Councilmember and Ross Irwin, Cabinets By Trivonna

Page 4

PRESIDENT’S COLUMNMEMBERSHIP RECRUITMENT IS EVERYONE’S RESPONSIBILITY Page 5

THERE’S NO PLACE LIKE HOME 2014 AUCTION

Page 11

WELCOME NEW MEMBERS/THANK YOU RENEWING MEMBERS Page 12

NEWSFLASH: RAISING THE COST OF HOUSING MAKES HOUSING LESS AFFORDABLE

Page 5

CORNERSTONE PARTNERS Page 8

MESSAGE FROM THE EXECUTIVE OFFICER Page 9

LATEST GOVERNMENT AFFAIRS ISSUES

Interested in sharing your expertise, opinions or comments with Chalk Line readers?

Please contact Angela White at angela@omb.org or (360) 754-0912 to discuss the opportunity to write content for Chalk Line.

Looking Ahead September 3-ROII Select Help Us Help You! The ABCs of Claims Management Class at the Olympia Master Builders Office. (Call 360.352.7800 to register)

September 24 & 25-Green Building for Building Professionals at the Olympia Master Builders Office. (Call 360.352.7800 to register)

September 4-Grays Harbor Chapter Meeting at Gepettos in Montesano.

ADDITIONAL UPCOMING EDUCATION CLASSES

September 9-Executive Commitee/Board of Directors Meetings at the Olympia Master Builders Office.

September 16-Remodelers Council No Host Breakfast at the Black Bear Diner in Olympia.

October 15-Design/Build at the Olympia Master Builders Office. (Call 360.352.7800 to register) October 16 & 17-OSHA 10 Hour Course at the Olympia Master Builders Office.

(Call 360.754.0912 to register)

September 16-Mason County Chapter Meeting location TBA.

November 12-Profitable Business through Quality Practices at the Olympia Master Builders Office.

(Call 360.352.7800 to register)

September 17-Lewis County Chapter Meeting at Ramblin Jack’s Rib Eye.

December 9-Scheduling Class at the Olympia Master Builders Office. (Call 360.352.7800 to register)

September 18-Coffee Connection networking event at TBA. September 20- OMB Auction at the Red Lion Hotel in Olympia.

For more details on these upcoming OMB events, go to www.omb.org.

Chalk Line • 3

FROM THE

2014 President think how much stronger our Association would be if we were all playing a key role in recruiting and retaining members.

M

John McKinlay PRESIDENT

embership Recruitment is everyone’s responsibility.

Whether you joined to grow your business through the educational opportunities and networking events, to save money with our programs and services or simply to be informed of current issues and be represented through the collective of an association, you are gaining value from being a member of Olympia Master Builders (OMB). For OMB, the Building Industry Association of Washington and the National Association of Home Builders to remain viable advocates for the housing industry we need to continually grow our membership and that starts here locally.

It is easy for us all to think it’s someone else’s job to recruit new members and retain current members. Of course the Membership Committee, the Board of Directors and OMB staff all play a part in recruiting on behalf of the Association, but

4 • Chalk Line

In your day to day activities, you are in a perfect position to encourage new members to join by advocating on behalf of the Association. I understand that you may be uncomfortable with the thought of asking someone you do business with about joining but I am here to tell you that it gets easier with practice. As the 2013 OMB Recruiter of the Year, the best tip I have for you to succeed at recruiting is to be good at listening. Find out what the prospective member’s needs are and then highlight how OMB meets those needs. This is the way you show them the “what’s in it for me!”

If they tell you no at first, don’t give up. Invite them to attend an upcoming event or meeting as your guest. It may take further interaction with more than one member before they decide to join.

OMB’s Membership Marketing Coordinator Amanda Cassman is also always available to assist you in your recruiting efforts. If you don’t know all the details about an OMB benefit, you can ask her to contact your prospective member and give them more information or she can send you additional information to utilize next time you talk with your prospect.

After spending time recruiting new members it also makes sense to make sure they renew their membership each year. We all need to make sure new members feel valued and included.

Make sure they get involved in a committee or program that meets their needs. It is absolutely true that the more involved people are, the less likely they are to quit. Touch base with your recruit regularly to see if there is anything you can do to help make their membership experience better.

of our best interest to see OMB’s membership numbers climb. Higher membership numbers mean better networking, better events and better opportunities. Also, the higher our membership numbers climb the more seriously our elected officials take us when we chime in on issues affecting our industry.

As your 2014 President I am challenging you to get out and recruit at least one new member this year. We will be holding our annual membership drive again in October so stay tuned for more details!

Retaining new members extends past just the people you personally recruit. If you see someone at a meeting or event that you don’t Save Money! recognize say hi and • Return on Indus trial Insura introduce yourself, • Health Insuranc nce Program e Program invite them to sit at • Verizon Wireless Cell Phone Progra m • Many other mo your table or join ney savings progra ms your conversation.

Grow Your Busine ss!

A bit of kindness • FREE listing in on line and goes a long way distributed to 10,00 printed OMB Buyer’s Guide 0 potential cu • Three Home Show stomers in enhancing s • Tour of Homes® someone’s • Networking Eve nts • Many other adve membership rtising and sponsor ship opportunities experience.

Be Re pr esented!

Remember what • OMB is the voice of the it was like when City and County go home building industry with the • OMB also particip vernments in our five-county are you were brand a ates regularly with other organizatio a coalition on top ns as ics new and trying of mu tua • The Affordable Ho l interest us candidates who un ing Council endorses and supports to carve a place derstand the impo rtance of the home building industry for yourself.

We all joined for our own reasons but it is in ALL

Be Informed!

• Education Progra m • Remodelers Coun cil • Built Green® Pro gram • Housing Summ it • Learn from your peers in the indus try

Chalk Line

Don’t Miss the 2014 OMB Auction!

Official Publication of the Olympia Master Builders 1211 State Avenue NE, Olympia WA 98506 Phone: (360) 754-0912 www.omb.org

The Olympia Master Builders is a professional trade association representing nearly 550 member companies located in Thurston, Lewis, Grays Harbor, Mason and Pacific Counties. Our members come from all sectors of the building trades and they are committed to “building strong communities, one home at a time.”

There’s NoPlease join us Pla Olympia Ma ce Like Hom st e

Auction

er Builders

Saturday, Se ptember 20 th - 6:00 Red Lion Ho tel, Olympia, pm WA $75 per pers on $520 for a ta ble of eight Wizard of Oz At RSVP by Frid tire (optional) ay, Septembe th r5 360.754.09 12 or omb.or g

Executive Committee

President John McKinlay First Vice President Scott Nolan Treasurer Ron Deering Associate Vice President Tina Allen Second Associate Vice President Kim Asay Secretary Rusty Ruiz Immediate Past President Janine Ezzell Builder at Large Mike Auderer

Builder Directors Scott Bergford, Bob Clark, Andy Gruhn, John Kaufman, John Johnson, Adam Kugel

Made pos generous ma sible by our in event spo nsors

Associate Directors Jeff Klingberg, Holly Constantine, Heath Howerton, Jon Jones

Legal Counsel Jay Goldstein

National Directors Bob Kagy, Karen McClennen, John McKinlay

State Directors Tina Allen, Mike Auderer, Ray Bonney, Ron Deering, Tim Dickey, Erik Jensen, Bob Kagy, Harv Lillegard, Bob Love, Karen McClennen, John McKinlay, Aaron Nester, Scott Nolan, Carmen Rowe

Lewis County Chapter

President Erik Jensen First Vice President John Johnson Assoc. Vice President Becky Rieger Secretary Rick Borovec Builder Directors: Don Koidahl, Dave Danton, Dustin Westfall Associate Directors: Carmen Rowe, Jason Kunz

Cornerstone Partners

Cornerstone Partners recognizes member companies whose financial support have made our association programs possible. Contact Amanda Cassman at amanda@omb.org or (360) 754-0912 for information on this program.

GRANITE LEVEL-$5,000 Investment

Mason County Chapter

President Aaron Nester Associate Vice President Mike Gill Secretary Bob Love

QUARTZ LEVEL-$3,000 Investment

Grays Harbor Chapter

President Harv Lillegard Associate Vice President Rusty Ruiz Secretary Rhonda Sturgeon

Association Staff

Executive Officer Troy Nichols Accountant Sally Darrow Communications DIrector Angela White Government Affairs Director Adam Frank Events Director Brianna Bedell Membership Marketing Coordinator Amanda Cassman

MARBLE LEVEL-$1,000 Investment • Chicago Title • Contractors Insurance NW, Inc. • Dickey’s Remodel & Repair • Lew Rents • MDK Construction, Inc. • Olympia Construction, Inc. • Puget Sound Energy • Scott Homes, Inc. • Sunset Insurance Agency, LLC • Umpqua Bank • Veteran’s United HOme Loans of Puget Sound Chalk Line • 5

GUEST COLUMNIST:

Lenny Greenstein, Lacey City Councilmember doing this I built enough relationships with builders and other business people to grow my agency to a size that made it marketable. I was able to sell the agency while staying active in the industry and the organizations that helped me grow my business.

W

hen I moved to Washing-

ton state eight years ago from Florida, I only knew one person in the area and he was in the insurance

I met enough people and built enough personal relationships over the years to put me in a position to run for the Lacey City Council after only living in this community for four years. With the help and support of the Olympia Master Builders and its members, I won that election with 62% of the vote.

them. It takes time and effort to build business relationships, but in the end people do business with people they know, like and trust.

One more great outcome of being a member of the Olympia Master Builders?

I have made some wonderful friends!

Lenny Greenstein is a former member of the Olympia Master Builders and currently serves as a Lacey City Councilmember, Position #2. He is running for re-election in 2015.

The fact is, you will get out of the Olympia Master Builders, or any of these other organizations, exactly what you put into

Membership Works business, just like me. I had to find a way to quickly become known in the community so I could start to build my new insurance agency.

IF

The first thing I did after getting the agency opened was join several local business organizations including the Thurston County Chamber of Commerce, the Lacey Chamber of Commerce, and, of course, the Olympia Master Builders.

I didn’t simply join these organizations, I became deeply involved in them. I made it a priority to be at as many of their events as possible and to join multiple committees. I sponsored events and advertised in their publications, but most importantly I made it my mission to get to know the members.

At every general membership meeting of the Olympia Master Builders I made sure to sit next to different people, setting a personal goal of meeting three new people at every event. In four years of

6 • Chalk Line

2011 OMB President Janine Ezzell of Chicago Title, visits with Lenny at a 2011 Elected Officials reception.

Yo

GUEST COLUMNIST:

Ross Irwin, Cabinets By Trivonna 2. Education. When we joined OMB, I had not worked in the construction industry for almost twenty years. I’ve learned a great deal from other members through involvement in the Remodeler’s Council, Associate’s Council, serving on the board, etc. Not to mention the formal classes that are available through OMB and the Building Industry Association of Washington (BIAW).

W

hen we first opened Cabinets

by Trivonna, Tim Dickey, a contractor who followed Trivonna from her previous employment, “strongly encouraged” us to join Olympia Master

3. Comradery. When times were tough, we never felt alone. And now, when times are great we know we’re not the only ones working around the clock!

4. Networking. The monthly Coffee Connection is becoming a good tool for meeting people and getting your

construction industry. Adam Frank, and the Government Affairs Committee, in conjunction with the Thurston Chamber of Commerce, are working tirelessly to alert our elected officials to the negative consequences of their decisions. Issues like gophers, lakes, impact fees, zoning issues (including density requirements verses height restrictions in the Olympia downtown core) are vigilantly addressed on a regular basis.

Cabinets by Trivonna would not be where we are today without OMB! Ross Irwin is a member of Olympia Master Builders and has served on the OMB Board of Directors among his many volunteer roles at OMB.

ou Work Your Membership Builders (OMB). I guess we’ll never know whether he would have continued to buy from us if we had declined – but that doesn’t matter because the benefits of membership have far outweighed the cost.

Now, like Tim Dickey, I encourage people to join OMB. Occasionally I will hear, “I am not eligible for the ROII (Return on Industrial Insurance) program so why would I join?” The ROII program is a great member benefit for those that qualify but like many companies we are not one of them. We have found many other benefits to membership with OMB: 1. Significant home show booth discounts. One of the main reasons we are thriving is a consistent presence in the home shows. The member discount for home show booths pays for twothirds of our annual membership fee!

brand out in the market place. OMB, in conjunction with the Chambers of Commerce, EDC, and MLSA, make up the bulk of our marketing effort. Again, consistency is key.

5. Awards. Cabinets by Trivonna is not a contractor and cannot enter events like “Tour of Homes” and “Remodeling Excellence Awards”, but our clients can!

While we won’t get plaques or trophies, and may or may not get recognition at the awards banquets, we can market the photos of Trivonna’s designs as “Award Winning Designs.”

All of the benefits I listed are admittedly self-serving – they directly help me grow my business. But there is another, more critical benefit: Advocacy! Our local governments often lack perspective or understanding of the consequences of their decisions as it relates to the

Ross, 2012 REX Awards MC Sponsor, congratulates Bob Clark of Home Resource Company on his award.

Chalk Line • 7

FROM THE

EXECUTIVE OFFICER

I

t’s only my first month on the job, and I can’t tell you how excited I am to serve as your Executive Officer! It is truly an honor to represent all of our builder and associate members, a group of folks who do so much for our community through their entrepreneurial and volunteer activities.

Troy Nichols EXECUTIVE OFFICER

Troy comes to OMB after nearly 20 years of experience in government and political affairs, including the past five years as the Director of Policy Development for the Washington State House Republican Caucus.

OMB’s primary mission is to provide affordable housing to all segments of society, a goal that I wholeheartedly embrace. We do this primarily by working hard every day to improve the construction industry and the business climate in which all of our members operate.

My goals for managing your association?

They’re simple – regaining our strength through numbers, and adapting to a rapidly changing and continually shifting political and economic landscape.

As someone who has operated at all levels – local, state, and federal – in the political realm throughout the Pacific Northwest for the last 20 years, I know first-hand the importance and effectiveness of a large constituency speaking with a unified voice. Our industry and our association has weathered the storm through the ‘great recession,’ but it has taken its toll on our membership and our effectiveness.

Adding new members to the ranks of OMB is a big priority. More members equals more influence in political discussions. It also means more resources for the association to provide services to you and your business.

October is our next big membership drive month, so stay tuned for details on what you can do to help!

We are also beginning a comprehensive review of all of the programs, events and

8 • Chalk Line

services OMB provides to make sure our members are getting the maximum value out of their membership.

Long gone are the days when folks joined their trade association simply because it was ‘just what you did.’ Today, builders and small business owners want to know how joining an association will help their bottom line.

The marketplace has shifted dramatically over the last 25 years, and we need our organization to recognize and adapt to those changes.

Fortunately, I believe we have a great story to tell when it comes to the valuable benefits OMB provides: A newly rejuvenated ROII program, two affordable health insurance options for business owners and their employees, excellent networking opportunities, political advocacy, and a variety of valuable retail discounts. Once businesses are made aware of these benefits, we want them to ask, “How can I afford NOT to be a member of OMB?” But don’t just take my word for it! In this edition of Chalk Line, we shine the spotlight on two OMB members who used their membership to start and grow successful businesses.

According to Ross Irwin, owner of Cabinets

by Trivonna, he owes much of his success over the years to joining OMB. Also, Lenny Greenstein moved to Thurston County from Florida eight years ago and built his insurance agency from scratch, thanks in large part to his participation in business associations like OMB. It’s an exciting time to be joining the Olympia Master Builders, and I’m looking forward to working with you all!

The Latest Government Affairs Highlights Olympia Master Builders (OMB) is currently working on and/or monitoring many issues related to the building industry.

These are just a few recent highlights.

City of Olympia

Comprehensive Plan Update – Olympia City Council held a public hearing in July on its Comprehensive Plan Update.

OMB testified at the hearing and provided written comments, which urged the Council to be less prescriptive, and to adopt the City Manager’s more reasonable recommendations.

The draft that the Council is considering uses language that requires a number of activities and practices that are better left to be decided by the market. For example, the plan requires alleys in new developments, and requires unachievable minimum densities in targeted areas of the city. The draft also calls for a public process to identify views around the city that need to be protected, which would make it much more difficult to build vertically and accommodate the kinds of residential density that the plan envisions. The Council is reviewing public comments and will hold a series of work sessions to work on specific issues. OMB will remain engaged in the process through its completion.

Impact Fee Deferral Program – Olympia City Staff recommended an impact fee deferral program to City Council’s finance committee on August 11th, and the committee voted unanimously to forward the recommendation on to the full Council. OMB sat at the table at the committee meeting to discuss the benefits to deferring the payment of impact fees until final building inspection.

The same program was in place from 2009 to 2011, and would allow the deferral of impact fees for parks, schools, and transportation. This would ease a substantial burden on builders who have had trouble financing the cost of the fees. The Council will likely take up the proposal as part of its annual budget process in November, and OMB will be there to encourage its adoption.

Shoreline Master Program Update – The Department of Ecology held a public hearing on Olympia’s proposed Shoreline Master Program update at the end of July. OMB was there to testify in support of the compromises the City made on setbacks and clear nonconforming development standards, and to suggest better protections for private property in any new, mixed-use developments in the shoreline. There was also a good showing of support from the Thurston County Chamber and the Yacht Club. The public comment period remains open until 5pm on September 8th.

Lewis County

Shoreline Master Program Update – OMB has a seat on Lewis County’s Shoreline Master Program Citizens Advisory Council (CAC). So far, the CAC has looked at shoreline environmental designations, which are reasonable and have been designed to maintain flexibility for future uses. The monthly CAC meetings are ongoing between now and December, and OMB will continue to participate and update members throughout.

Mason County

Shoreline Master Program Update – Mason County’s Planning Advisory Commission (PAC) is working on the county’s Shoreline Master Program (SMP) update. In early August, the PAC voted to limit the SMP’s jurisdiction to the minimum, leaving out the 100-year floodplain. OMB was there to voice its support for the action, and will stay engaged as the PAC continues its work.

To get more involved in the OMB Government Affairs Program, contact Adam Frank at adam@omb.org or (360) 754-0912.

Are you an Olympia Master Builders member who doesn’t qualify for the Building Industry Association of Washington (BIAW) Health Insurance Program?

Bob Kagy

e Bobk@printnw.net p 360.456.4545

so, If B ce i OM Cho h eet t l a !

He can m eeds rn u yo

For a free quote or plan comparison contact: Olympia Master Builders 360.754.0912

OMB is not a licensed insurance agency and cannot provide benefit details or advice on which health plan will meet our members needs the best. All insurance plans offered through the OMB Health Choice program are provided through a licensed agent.

Chalk Line • 9

Welcome New Members May through June 2014 May New Members Sherwin-Williams Shane Adams 3949 Martin Way Olympia, WA 98506 (360)459-3450) Sw8136@sherwin.com Sponsor: Doug Karman Olympia Home Exteriors Don Lobb PO Box 704 Olympia, WA 98507 (360)701-3870 don@olyhomeexteriors.com Sponsor: Angel Anderson MVP Realty Group Cyndi Nelson 208 Lee Street SW Suite #108 Tumwater, WA 98501 (360)701-4223 Cyndi.nelson2@gmail.com Sponsor: Carmen Rowe Ron’s Hardwood Floors & Co. Ron Swena 323 Russell Rd. Winlock, WA 98596 (360)785-0281 ronshardwood@qwestoffice. net Sponsor: Mike Auderer June New Members: Christopherson Wood Floors Lynette Fox PO Box 592 Olympia, WA. 98507 (360)357-7919 Oly2442@hotmail.com Sponsor: Karen McClennen

Travers Sound & Telecommunications Systems, Inc. Ron Travers 122 Sturdevant Rd Chehalis, WA 98532 (360)748-0059 marge@traverselectric.net Sponsor: Doug Karman Mike Anderson Construction, LLC Mike Anderson 3626 65th Ave SW Olympia, WA 98512 (360)943-7608 Mikeandersonconstruction3 @comcast.net Sponsor: John McKinlay Vaughn Mechanical Shawn Murphie 6111 Esther Ave SW Tumwater, WA 98501 (360)357-9973 s.murphi@vaughn mechanical.com Sponsor: Tim Dickey American Plumbing Contractor Keven Conner PO Box 701 East Olympia, WA 98540 (360)438-0611 American.plumbing@ comcast.net Sponsor: Tina Allen Franciscovich, Inc. Jack McPherson 714 W. State St. Aberdeen, WA 98520 (360)532-5151 jack@fgmcandd.com Sponsor: Debbi Boyd

Seabrook Construction Albert Ordelheide PO Box 422 Pacific Beach, WA 98571 (360)276-0099 albert@seabrookwa.com Sponsor: Scott Bergford

Larson & Associates, Inc. Julie Childers 4401 South 66th St. Tacoma, WA 98409 (253)474-3404 jchilders@rrlarson.com Sponsor: Rusty Ruiz

Travers Electric, Inc. Ron Travers 122 Sturdevant Rd Chehalis, WA 98532 (360)748-0059 ron@traverselectric.net Sponsor: Erik Jensen

Thurston First Bank Tim Shute PO Box 7877 Olympia, WA 98507 (360)528-4115 Tim.shute@thurston firstbank.com Sponsor: Paul Muldoon

10 • Chalk Line

Thank You Renewing Members May through June 2014

25 + Years Mr. Electric Lew Rents Company Sandrini Const. & Remodeling, Inc. Olympia Fireplace and Spa Childress Building & Design, LLC 20-25 Years CH2O, Inc. Chehalis Rentals Buehler Homes, LLC Olympia Overhead Doors Southgate Fence, Inc. Specialty Steel Fabricators Title Guaranty of Lewis Co. Andy Johnson & Co., Inc. W.E. Davis Company, Inc. Crawford Construction, Inc. 15-19 Years Bailey General Contractors, LLC Brown Building Contractors Gerald Bailey Construction, Inc. Oman & Sons Builders Supply Inc. Pro-Tech Commercial Landscape Maintenance Chehalis Sheet Metal Heating Cooling & Roofing, Inc. Freestone, Inc. Turbo Mechanical, Inc. BMC Building Materials McKinney’s Appliance Boyd’s plumbing DJ’S Plumbing, LLC. Northwest Design & Development Olympic Heating & Cooling, LLC Pacific Mobile Structures, Inc. Western Washington Construction 10-14 Years Brodie Heck Construction Snell Crane Service, Inc. C A & G General Construction, Inc. Hoeks Painting, LLC House Brothers Construction, Inc. Madsen Electric, Inc. MDK Construction Washington Business Bank Lane French Construction

Harbor Ventilation, Inc. Jodesha Broadcasting, Inc. John J. Karnas Co. Levee Lumber, Inc. ServiceMaster 1st Choice Sunlight Woodenworks, Inc. 2-10 Home Buyers Warranty 5- 9 Years H2O Jet, Inc. Packwood Ace Hardware Strategy Insurance Brokers, LLC Airtech West, Inc. KC Maintenance Services Little River, Inc. Parr Lumber Company A Glass Enterprise, Inc. A personal Touch Painting, Maintenance & Remodeling, Inc. Adam Laneer Construction, Inc. Cabinets by Trivonna PUD #1 of Lewis County Reliable Electric, Inc. H & R Waterworks, Inc./ The Water Company J T S General Contractor, Inc. Olympic Iron Works, LLC 2-4 Years Advanced Energy Systems Bud’s Lumber, Electric & Plumbing Jessica Jensen Law, PS Washington State Kitchen & Bath Lotus House Development Corp.

Winters Construction Yelm Plumbing & Pumps Carnahan’s Pest Control Co. Reliant Builders, LLC Rodda Paint 1 Year DeeDub Plumbing Edward Jones Investments Elkin Contracting Inc. Interior Dimensions Prestige Electric, Inc. Randle Woods Transolympic Engineering, Inc. Whitehouse & Nichols Attorneys at Law

NEWSFLASH: Raising the Cost of Housing Makes Housing Less Affordable

Adam Frank GOVERNMENT AFFAIRS DIRECTOR

O

ver the last several months, I have participated in numerous discussions in Thurston County about how to make housing more affordable.

Specifically, I have contributed to the Thurston Thrives Housing Action Team since last year, and I recently became a member of the Thurston County HOME Consortium’s Citizen Advisory Committee, which advises the Consortium on project funding. Not all of their ideas are bad, but they seem to be doing little to address the actual cost of housing.

From my perspective, a significant piece of Thurston County’s housing affordability puzzle is an economic and regulatory climate that encourages business and homebuilders to look outside of the county for economic opportunity. If both affordable housing and increased revenues are what a government wants, it will not get there by driving away some of its best revenue generators. With new housing comes more property and

sales tax being paid by its occupants. These two taxes make up a large portion of local governments revenues, and when tax receipts drop, everyone notices. So when regulations put the squeeze on new housing, local governments are shooting themselves in the foot.

Though local regulations aren’t the only problem.

The price of housing is affected by a range of factors, including the cost of multiple layers of regulations. From the federal level on down, land use regulations, impact fees, and environmental rules combine to affect the cost of housing. At the federal level, we have the listing of several prairie species as threatened or endangered limiting the supply of buildable land and adding expensive mitigation methods. Washington’s Growth Management Act and its urban growth areas also limit the supply of buildable land. We all learned in Econ 101 that a diminished supply will drive up costs. State and federal regulations meet up at the local level where permitting happens, and where local governments add costs of their own—not all of which are completely unnecessary—in the form of

permit fees, general facilities charges, plan review fees, and impact fees (including fees for schools, parks, and transportation).

The total cost of regulation skews housing prices upward and out of reach for a multitude of families who are simultaneously struggling to find jobs that will pay enough for them to afford quality housing. For someone whose income is stagnant or falling, rising home prices can feel like a punch in the gut. In fact, the National Association of Home Builders recently found that for every thousand-dollar increase in the median home price in the Olympia area, 207 households are priced out of the market. That means that plenty of families are missing out on the economic leverage and stability that home equity can provide, and still more are squeezed financially by high rents and mortgage payments. And around and around we go.

This perfect storm of expensive housing and lowpaying jobs in turn makes it more tempting to introduce additional regulations, taxes, and fees, which would only compound the problem. If we really want more affordable housing in Thurston County, perhaps we should reexamine some of the regulations that directly increase the cost of housing. Combine that with some market-friendly economic policies that will help to add jobs and grow incomes, and we’ll be in business.

Adam can be reached at adam@omb.org or (360) 754-0912

Whether it’s covering your employees or your family, we’ve got you under our wing.

To learn more abouT aflac, conTacT:

Coverage is underwritten by

angel anderson (360) 742-4614 |

American Family Life Assurance

Z120782B

angelica_anderson@us.aflac.com

Company of Columbus.

9/12

Chalk Line • 11

PRSRT STD U.S. POSTAGE

PAID

OLYMPIA, WA PERMIT #159

1211 STATE AVE. NE OLYMPIA, WA 98506 $1.25 per copy 360-754-0912 800-456-6473 www.omb.org

Don’t trash it - donate it!

Habitat for Humanity now accepts donations at the Thurston County Waste and Recovery Center at 2420 Hogum Bay Road NE in Lacey.

Your donation supports Habitat’s mission, keeps valuable resources out of the landfill, saves on trash disposal costs, and is tax deductible.

For information, call (360) 956-3456 or visit ThurstonSolidWaste.org/greenbuilding