Building Home Magazine Dec 23/Jan24

DECEMBER 2023 • JANUARY 2024

THE OFFICIAL MAGAZINE OF THE HOME BUILDING ASSOCIATION OF GREATER PORTLAND

The Realistic Application of Cottage Cluster Construction with Red Hills Land and Design, LLC Page 4

Meet your Incoming HBA 2024 Board President (p. 11) 2024 HBA Housing Forecast Recap (p.14) Key HBA Advocacy Results for 2023 (p. 20) ...and much more!

THE OFFICIAL MAGAZINE OF THE HOME BUILDING ASSOCIATION OF GREATER PORTLAND

from the top Looking forward to 2024 –

2023 Outgoing HBA Board President, Robert Wood, Reflects on his Time as President

A note from your incoming HBA Board President, Jeremy Osterholm BY: JEREMY OSTERHOLM,

BY: ROBERT WOOD, MOUNTAINWOOD HOMES

OSTERCRAFT HOMES

It’s hard to look into the future without acknowledging the past. Robert Wood, our 2023 president did an excellent job leading us this last year and has left the HBA in a better position than he found it. Thank you, Robert!

I’m excited for 2024 and honored to be Board President.

We have a lot to look forward to. The Home and Garden show has been coming back a little stronger each year since the pandemic and the board is committed to make it even better than before. Darlene Van Kuren is going to do an amazing job as PWB Chair. I’m excited to see her in action.

The Remodeling and Custom Building Council heads into its second year since coming together, and is in good hands with Kara Murray as the Chair. I’m looking forward to see where this group picks up after a great start last year. The Street of dreams will be back in Lake Oswego with grand homes and our ON TOUR segment is setting up to be larger than ever. These are just a few of the highlights that I’m looking forward to this year.

I hope to see you all at our events throughout the year. Be on the lookout for some new gatherings, or twists on the old ones as we work to grow our association and have some fun along the way.

I wish you, your families, and businesses a happy, healthy, and prosperous 2024.

Reflecting on the last year has revealed a couple of things: 1. Gratitude • I’m grateful for my wife Heather and her support and encouragement in all I do. I’m a lucky man!

• I’m thankful for a fantastic work team that has been supportive of my time investment in the HBA. I get to work with the best!

• The executive team has been a huge support to me and the HBA. I’ve been working with great leaders!

• The HBA staff at all levels is amazing and the HBF staff is pretty cool too. They are all working their hearts out for our industry.

2. Time • It’s a commodity that we never get back. Use it wisely.

• You’ll not regret using time with those you value. Do what you enjoy.

3. Momentum • Very few things happen because of extraordinary events. Most of what we have is built on small incremental steps.

• Momentum can power through many a challenge. It can also take you the wrong direction very quickly, know which way you are headed.

In closing, I’m thankful for my opportunity to serve as president this past year and feel my time was well used for the benefit of our industry.

The Home Building Association is experiencing positive momentum, and it is our responsibility as members to do our part to make sure we are regularly adding our small part to add to this momentum.

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The Realistic Application of Cottage Cluster Construction with Red Hills Land and Design, LLC A Q&A with Bill Krasnogorov of Red Hills Land and Design, LLC about the ups and downs of building cottage clusters since HB2001

BY SAMANTHA THOMAS AND PRESTON KORST, HBA STAFF

Six all new cottage cluster homes courtesy of Red Hills Land and Design, LLC situated on the half-acre lot “parent lot” in Happy Valley.

When HB2001 went into effect in 2020, many builders around the Greater Portland area were exposed to a whole new market of home types to expand the products they can offer the community. With this expanded inventory potential came many questions like “How do I break into this new market?” or even, “Why would I want to?”. We sat down with Bill Krasnogorov, VP of Sales at Red Hills Land and Design, LLC, to get his perspective on how he and his company faced these very questions when they decided to break into this market.

Bill realized that Happy Valley did not have affordable housing options other than apartment living when his newly married daughter started looking for a place to buy or rent. He soon realized that the market was missing an entire generation of first-time buyers who were looking for an affordable, and familyfriendly place to call home. “I studied the code and consulted with the planning and building officials to come up with a product that helped to create the much-needed affordable housing,” explained Bill. Bill and the team at Red Hills Land and Design then set out to build their first cottage cluster site in Happy Valley.

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WHAT ARE COTTAGE CLUSTERS? House Bill 2001 defines a cottage cluster as “groupings of no fewer than four detached housing units per acre with a footprint of less than 900 square feet each and that includes a common courtyard.” In essence, they can be pocket neighborhoods or micro-communities developed with detached homes that exchange private, fenced yards for larger common spaces.

They are different than other middle housing options because they are detached products, and can either all share one piece of property, or be situated on small individual tax lots.

The concept of building Cottage Cluster housing is not new. In many jurisdictions, it has been allowed in certain, limited zones for decades. For instance, Fairview, Silverton, Milwaukie, and Portland have all seen variations of cluster-style housing developed in the past 20 years due to unique, progressive allowances in their codes that allowed for these types of developments. However, it wasn’t until the state’s passage of its historic middle housing bill that this type of building became allowed in ALL cities, and subsequently popularized by more homebuilders in the region. What was once an experimental design tool, clusters are quickly becoming more common, and in some cities, a key tool for increasing housing production.

HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

Q&A with Bill Krasnogorov of Red Hills Land and Design, LLC Q: Tell us about the homes on the site – square footage, bedrooms, bathrooms, energy efficiency features?

A: Our homes are 1,000 sf. Featuring 3 bedrooms, a full bath on the upper floor, and a half bath on the main floor with a targeted sales price of $499,900. Our target consumer is the young starting family on the road to break away from apartment living. Our location offers an attractive setting offering great schools, parks, and walking trails. As for energy efficiency; building a compact footprint is key. Our homes are designed with an open floor plan with all bedrooms on the upper floor. The unit’s HVAC system is a high velocity, natural gas-fired, forced air system, all placed inside the building envelope. Tankless water heaters are a standard feature, for both energy efficiency and space-saving benefits.

the challenge. Our largest utility improvement was stormwater management, which we took underground with StormTech chambers. The second largest utility challenge is the domestic water supply. The public utility providing water to our site is not seeing eye to eye with us on the required demand on usage, and is requiring us to oversize the supply line to accommodate any potential future development. This is creating an enormous expense that we don’t believe is necessary, since there are no plans for any future development of our site. To overcome this obstacle we are considering other water supply options, including the installation of a new shared well for the site. I do have to point out that NW Natural has been the greatest to work with. Not only do we believe natural gas is the most efficient and environmentally conscious way to heat your home, they were also the first to come up with a design plan for service, and provided the connections within a few weeks.

Q: What’s the lot typical size?

A: Our project is not going through a middle housing “child lot” division. It will remain as one property; however, we are working on the condo conversion to have these homes financed and/or sold individually. The parent lot is ½ acre.

Q: What about permitting? Given this is a new building type, how are cities permitting processes for this?

A: The anticipated permitting timelines were nowhere near to reality. Our project was 14 months in the making before we were granted permits for building. Stormwater and site utilities were a separate challenge since none of the utility companies knew exactly how to set up this development. The process has been a learning exercise for planning, building, and engineering departments just as much as it was for ourselves.

Our challenges from definitions to simple interpretation of code, have been challenging – mainly because there was no precedent to follow.

Q: How long does it take to develop, build, and sell?

A: We haven’t gone through a complete cycle yet, but our estimate is a 2-year turnaround. We expect the permitting process to speed up a bit, as jurisdictions become more familiar with the middle housing code.

Q: Describe what makes the construction of cottage cluster products attractive.

A: Affordability is the main attraction. We are all aware of how expensive housing has become. Being able to share on the cost of land, allows us the ability to create a product that fits the requirements for the next step housing after apartment living.

Q: What are the challenges to building cottage clusters?

A: It is an uphill battle with plenty of opposition from various angles. The sites become very tight, for operations and material storage. Permitting fees are still a huge factor. Our development is still costing us close to a quarter of a million dollars in permit fees - this is reflected in the final cost to the consumer.

Q: You’re building six homes on a small site—how did sanitary sewer lines work? Was there a need for easements or any special public main hookups? Any other infrastructure challenges involved in this project?

A: Utilities do create challenges on infill sites in general. The increased density that comes with middle housing just adds to HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

“Simply put, we [Happy Valley] don’t have an affordable housing option other than apartment living. The cost to develop a buildable lot is so high that projects don’t pencil out financially, unless a large home is built on the lot. We now have an opportunity that allows us builders/developers to provide an efficient and affordable product – through the middle housing code adoption.”

Bill Krasnorogorv, VP of Sales at Red Hills Land and Design, LLC

Q: What features do you see as the high selling points of this/cottage cluster products?

A: AFFORDABILITY – is probably the best-selling factor.

The affordability comes as a two-fold benefit. The first is the affordable purchase price of the home. And the second is low energy usage. The compact home design and the built-in efficiency measures we provide, allow the new home buyer to reap the inexpensive cost of utilities for many years to come.

Q: How have the communities responded to your projects?

A: The first reaction is quite fearful; however, once we start the discussion to find out what exactly worries people when it comes to middle cottages, we find out the reason for the worries. I find that most people worry about people taking tough sheds, running some utilities, and calling them cottage units. Even though the code may allow for this type of structure, my goal is to create a product that is very livable and aesthetically pleasing in the surrounding neighborhoods. After presenting my vision of how this code can be implemented and the need for this type of product in the market, most people become accepting and understanding of this type of housing.

Q: How will you apply any lessons learned from previous projects to your future plans? Are there any changes would you like to see occur in the regulatory environment to make Middle Housing more accessible for future homeowners?

A: This middle housing project has been a great learning experience for us. We made some mistakes on the way, and we came up with great solutions. The cost of development is still far more expensive than we originally forecasted; however, that seems to be the case in every development project. I believe this housing type may be best implemented on slightly larger lots with a more community feel versus infill projects.

Story continued on page 6

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Meticulously using every square foot of land on this half-acre lot to produce efficient and comfortable cottages for the new generation of homeowners.

Q: From your perspective, how do you see the implementation of Middle Housing projects changing the development landscape in Happy Valley? Will the type of product you produce shift?

When jurisdictions were drafting their middle housing codes, many made an important shift from the typical regulatory stance for land use decisions—prioritizing the regulation of the form of housing, rather than the density. By increasing the flexibility for density, while guiding the building form to align with new state requirements, cities have been able to pull specific levers important to their individual strategic goals. For instance, some cities have required greater greenspace while removing parking

requirements. Others have opted to increase the number of allowed units per cluster development beyond state guidelines, while reducing certain building footprint and size requirements.

In general, many government’s engagement and surveys came back with clear results—the concept and potential benefits of Cottage Clusters were overwhelmingly popular by residents. Not only do they offer detached options (which consumers prefer), they also allow zero-lot line and homeownership opportunities with fewer encumbrances than attached products allow.

Additionally, clusters support reduced home sizes (for starter families and those aging in place) while enabling a greater sense of community with shared spaces. And given the fact that they tend to be marketed at a lower-price point, many affordability advocates have showed strong support. Because of their small footprint and low profile, cottages fit seamlessly into most detached single dwelling neighborhoods and are ideal for odd-shaped lots. Because they can be clustered, cottages lend themselves to sensitive sites where preserving trees and open space is a priority. Cottage clusters are expected to pop up on more jurisdictions around the area in the near future and many are excited to offer less expensive housing options to the new generation of homeowners.

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HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

A: Great question! It is no secret that the city of Happy Valley is strongly apposing middle housing building in general.

There is no secret when it comes to setting up hurdles to the full extent that the legislation allows (and maybe even a step or two further). I believe it will get better once more projects are approved and built – creating solid examples for us to follow.

The of Future of Cottage Clusters in the Greater Portland Area

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calendar : HBA happenings (meetings) UPCOMING HBA ORGANZIATION MEETINGS

Visit hbapdx.org/events for the most up-to-date information and event registration details.

If you would like to attend a meeting, check in advance to ensure there have been no schedule changes.

December

January

December 5

December 14

January 3

January 11

January 18

SOD Builder/Sponsor Meeting, 12:00 pm, HBA Offices - JMG First Floor

HBA Board of Directors (1st of ’24) + Orientation, 11:30 am, HBA Offices

RCB Executive, 10:30 am, HBA Offices + Zoom

HBF Board of Directors, 7:30 am, HBA Offices + Zoom

December 7

December 25 – January 1

HBF Executive, 8:00 am, HBA Offices + Zoom Government Affairs, 10:00 am, HBA Offices + Zoom

January 17

Workforce Development Advisory Board, 12:00 pm, HBA Offices

HBF Executive, 8:30 am, HBA Offices + Zoom Government Affairs Committee Special Meeting, 4:00 pm, HBA Offices

Holiday – HBA Offices Closed

January 9 SOD Builder/Sponsor, 3:00 pm, HBA Offices – First Floor

January 10 HPC Executive, 9:30 am, HBA Offices + Zoom Auction Committee, 1:00 pm, HBA Offices + Zoom

PWB Executive, 10:00 am, HBA Offices + Zoom Membership & Retention Committee, 12:00 pm, HBA Offices + Zoom

January 23

January 25 Finance Committee, 10:45 am, HBA Offices + Zoom HBA Executive, 11:30 am, HBA Offices + Zoom

HOME BUILDING ASSOCIATION OF GREATER PORTLAND ACRONYM KEY HBF – Home Building Foundation H&G – Home & Garden Show HPC – Home Performance Council PBUD – Portland Building & Urban Development Council

RCB – Remodeling and Custom Building Council PWB – Professional Women in Building Council SOD – NW Natural Street of Dreams®

ADVERTISE IN THE HBA BUILDING HOME The official publication of the Home Building Association of Greater Portland

HBA CEO Dave Nielsen Associate Publisher Brian Monihan, Pamplin Media Group Editor Samantha Thomas Advertising Representative Chris Sweet

For advertising rates, information and reservations for The Building Home Magazine, the 2024 NW Natural Street of Dreams® Magazine, please contact Chris Sweet today!

971.204.7886 csweet@pamplinmedia.com

Graphic Design & Production Matias Ricco Published by Pamplin Media Group

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HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

calendar : HBA happenings (events) UPCOMING HBA ORGANZIATION MEMBER EVENTS

Visit hbapdx.org/events for the most up-to-date information and event registration details.

If you would like to attend an event, check in advance to ensure there have been no schedule changes.

December

January

All Member Holiday Pub Tour

All Member Happy Hour

Hosted by the Home Performance Council

Presented by Pella Window and Door and programed by the PWB Council

Wednesday, December 6 3:00 pm – 7:00 pm Cost: $35 Member, $45 Non-Member Take a walking tour of West Linn’s Willamette Dr (Historic Old Willamette) and a few of the local bars and breweries they have. We will start out at the J. Willys Public House and Eatery then to Lil’ Cooperstown Bar & Grill. Our third stop will be the Ale & Cider House on the way to our ending stop at the Willamette Garage Pub & Food Carts where they have great cocktails, brews, food carts, firepits, and more. Sample some brews, try some specialty cocktails, eat some great food, and bring the Holiday Spirit! We hope to see everyone decked out for the holidays and ready to celebrate!

SAVE THE DATE! All Member Cornhole + BBQ Event

Thursday, January 11 5:30 pm – 7:30 pm Location: Pella Window and Door 9740 SW Nimbus Ave. Beaverton, OR 97008 Cost: Early Registration $20 Member / $30 Non-Member through January 5 then $30 thereafter.

Thursday, January 25 6:00 pm – 8:00 pm HBA is ramping up the FUN in 2024 so mark your calendars and plan to attend this BRAND NEW event in the Central Eastside District. Check the website for all the details coming soon!

We’re kicking off 2024 with our first All-Member Happy Hour of the year! Join your fellow HBA members for this fun, networking-focused event featuring delicious food and drinks provided by our hosting sponsor, Pella Window and Door in their beautiful Beaverton showroom. Informative programing from the Professional Women in Building (PWB) Council and introducing our NEW 40 Below young professionals project. All members and their guests are invited to attend. *Remember to login to receive member pricing when you register!

Contact info@hbapdx.org for your login.

associate of the year Sybil Fontaine (Individual)

associate of the year (Company)

builder of the year

Trade Contractor of the Year

remodeler/custom builder of the year

Congratulations to THE 2023 Annual Award Recipients!

Thank you for your leadership and support of HBA and the industry.

Lifetime Achievement Award Recipient Nate bond, pacific crest custom cabinetry

Ernie Platt Memorial PUblic Servant Award Recipent

HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

the hillsboro city council This award is given in honor and memory of longtime HBA leader and housing advocate Ernie Platt to recognize and reinforce the importance of the work of our local elected leaders on housing in the region.

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membership

Connect with us at HBApdx.org

30 New Members THANKS FOR JOINING! ASSOCIATE MEMBER Aviator Heating & Cooling Daniel Luchkin 503-770-4822 HVAC Systems - Duct Cleaning Chris Merz Chris Merz 971-221-2631 Realtors Civic Construction, LLC Stanley Trytko 503-226-9166 Framing Contractors Columbia River Hot Tubs Jon Meyers 360-818-2881 Hot Tubs & Spas Complete Coatings Mike Coursolle 503-317-0538 Coatings Cornerstone First Mortgage Derek Richards 503-684-9111 Lending Institutions - Mortgages Glacier Window & Door INC. Sarah Egeland 503-504-7400 Window & Door Supplier Johansen Electric, Inc. Charlynn Leifsen 503-747-2503 Electrical Contractors

Directors Mortgage Julie Farrell 503-319-1874 Lending Institutions - Mortgages

Pacific Northwest Sculptors Association Bob Deasy 503-803-5507 Artist Association

WMX Construction, LLC Stanley Trytko 503-226-9166 Framing Contractors

Kerry Wetzel Photography Kerry Wetzel 503-577-4995 Photographers

PrimeLending Stuart Sandor 503-603-3333 Lending Institutions - Mortgages

BUILDER MEMBER

LADA Exteriors, Inc. Ivan Bobkov 503-860-6660 Remodelers

ProLift Garage Doors of Portland James Ball 503-893-4397 Garage Doors - Installation & Repair

Lamps Plus Mark Himebauch 503-641-7456 Lighting Design

Samson Consulting Jennifer Ornelas 503-840-8477 Consultants

Fir Construction, LLC. Wendy Skipton 503-313-9743 General Contractor

Landscaping MD LLC Dawn Bell 360-608-7438 Landscape Contractors

Solarcore Michael Markesbery 513-262-2388 Insulation Products

Pacific Northwest Land Company, LLC Mark Vukanovich 541-350-1060 Developers - Land

Lovett Deconstruction Dermod Lovett 503-954-2347 Demolition

UpDawg Painting Jon Elsom 503-816-4800 Painting Contractors

Lyle Williams Drew Fisher 406-690-8399 Electrical Supplies

WestPac Wealth Partners Bryan Briand 503-207-4528 Financial Advisors

MyPlumberNow, LLC Sean Sayler 503-583-0267 Plumbing Contractors

WindsorONE Rick Kitashima 206-677-1861 Building Materials

Columbia Roofing & Sheet Metal Cindy Lamar 503-684-9123 Roofing Contractors

Sage Built Homes, LLC Jason Sage 503-533-5167 Builders - Residential Woodstock Construction Josh Robertson 971-258-7400 General Contractor

115 Renewed Members THANK YOU FOR RENEWING YOUR MEMBERSHIP! 60-69 Years

Finlandia Sauna Products Inc.

50-59 Years

Customline Shower Company Dowers Waterproofing Inc. Neil Kelly Design/Build Remodeling

40-49 Years

Chicago Title Insurance Contract Furnishings Mart - Tigard Timberland Homes Inc.

30-39 Years

Bear Electric Inc Dan Riehl Excavating Fidelity National Title - Portland Medallion Industries Inc. NW Realty Group Pacific Design Inc.

20-29 YEARS

Audio/Video By Design, Division of Fred’s Sound of Music Bradlee Distributors USA Inc. COOPER Design Build Four Star Insulation Inc. Jim Carlson Construction Kraft Mobile Screen Service Roof Life of Oregon Taylor Morrison

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10-19 YEARS

Ashland Brothers Landscapes Blue Mountain Community Management C & K Custom Remodeling Inc. C & R Painting Inc. California Closets Campbell’s Tile Concepts Canby Builders Supply Cascade Hasson Sotheby’s International Realty Chad E Davis Const LLC Crandall Group DPI Solar EleMar Oregon LLC Elliott Powell Baden & Baker Inc. Farrell Realty & Property Management Garner Electric Giulietti/Schouten AIA Architects Habitat for Humanity Portland/Metro East Keith Davis Construction LLC Marathon Construction Services, LLC Modern Plumbing Co. Northland Design & Build Northwest Energy Efficiency Alliance, Inc. (NEEA) O’Neill Builders Pamplin Media Group Parker Concrete, Inc. Pat’s Pound & Pour LLC Pilot Property Management LLC Powell Built Homes Inc. Precision Garage Door Service RE/MAX Equity Group Revive, LLC RK Electric, Inc.

Ruben J. Menashe Inc. ShelfGenie of Portland Trinity Flooring Truax Builders Supply Western Outdoor Wholesale Westwood Homes LLC

5-9 YEARS

Asbestos Testing NW Complete Exteriors, Inc. Cudahy Lumber Company Curtis Homes LLC Eagle Landing EverLife Home LLC Integrity Air, LLC Kentco Paintco / Kentco Industries Inc Mike’s Electric Moffet Energy Modeling Northwest Waterproofing LLC NW Creative Resurfacing LLC OHI Construction Oregon Outdoor Lighting Portland General Electric Richmond American Homes Roof Masters Inc Sinclair Construction The Plumbers Inc. Vista Structural Engineering, LLC White Lightning Electric Wongs Building Supply

1-4 YEARS

1915 Excavation Co. Alliance Door Products Apex Air LLC Boden Store Fixtures, Inc. Brix Paving Northwest Inc. Building Towards Better LLC Clearwater Homes LLC Cougar Restoration Inc. DeCosta Properties - KW Luxury Homes Edelen Doors & Windows Gold Heat Hillsboro Community Foundation (HCF) Icon Construction & Development LLC Integrity Insurance & Bonding Inc JLO Investments, LLC Keller Kitchen & Bath Kerr Contractors Oregon, Inc. Landis & Landis Construction, LLC LatinoBuilt May Awning & Patio Co. Monkeyman’s Tree Service NorthWest AeroBarrier Oregon Lumber Company Paragon Tile & Stone Inc. Pennington Design Group LLC PNW Flatwork, Inc. Rose City Laboratories LLC Secor Homes LLC Stoller Wine Group Stoneridge Custom Development, LLC Tier 1 Excavation Tradebrothers NW Inc. Western Interlock Woodmaster Northwest Inc.

HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

member notes

Connect with us at HBApdx.org

Meet your 2024 Home Building Association Board President Jeremy Osterholm, President and Owner of Ostercraft Homes & President and Owner of 1915 Excavation Co.

Where did you grow up?

I was born and raised in Portland.

How did you get into residential construction?

I was born into residential construction.

My dad started as framer and later became a builder. I grew up spending time on jobsites pushing the broom, picking up scraps, and moving lumber. I started framing for my dad and mom’s company the day I graduated high school. At the same time, I was also going to college with the intention of becoming a forensic scientist or something law related I wasn’t 100% sure. My first job Dad had me hand-nail an entire duplex, no nail guns allowed and I was by myself.

They had another framing crew working the subdivision and I’d get those guys to help me tip the walls. When I started sheathing the roof they came over and said for a case of beer they’d bring their compressor over and help me. We were done in a day. I gave them the money for the beer and they shared, I was loving life. I continued to make friendships like this and learned more of the trades and before I knew it, I realized that all the school in the world wasn’t going to change what I was meant to do.

How long have you been a member of the HBA? I believe we joined the HBA in 2006.

Why do you value your HBA membership?

The connections and friendships I’ve made through the HBA are irreplaceable. I can’t imagine another place I could have met so many like-minded people with the similar goals and different approaches. I can’t think of situation where if I needed something I couldn’t find it through the HBA. What advice would you give someone entering the home building industry?

Join the HBA, find a mentor, and don’t be afraid to ask questions.

What do you enjoy outside of work?

The short answer is anything with my wife and daughters. We are a close family that does a lot together. Jen and I have spent a lot of time watching our girls in sports over the years. Mainly soccer, but other sports too. I love to get out in our RV just about anywhere, but my true happy place is in my boat that my dad and I built, cruising either the Metolius or Columbia River.

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HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

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member notes

Connect with us at HBApdx.org

Your HBA membership matters

Keep reading to see how your membership helps to strengthen your business and relationships and how your support helps to guide and advocate for the future of housing in the region.

Influence & Advocacy: HBA is well-connected and directly engaged with local, County, Metro, State, and Federal jurisdictions.

We work closely with electeds and staff on issues, policies, and regulations that impact business and housing like land availability, codes, permitting, SDCs, and more. Your membership means you have active, daily representation and a voice at all levels of government and housing policy.

Education and Peer-to-Peer Learning: From our flagship industry conference in the Spring (BuildRight), to our smaller peer-topeer forums, to our building science support consultant, to one-off educational programs offered both locally and virtually through our State Association, there are plenty of opportunities to learn and grow your business from outside experts and from others in the industry.

BtoB and BtoC Relationships: Through HBA’s member events, consumer shows, and partner opportunities, we bring folks together and provide tools to help you promote your brand, strengthen business relationships, and gain new leads and customers. HBA’s Councils and other special interest groups also provide ways to help people feel included and have fun at our events throughout the year to help build connections and trust.

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Meaningful Philanthropic Engagement: Through our Home Building Foundation, HBA, our members, and the industry are helping provide shelter for those less fortunate while also creating new employment training pathways for the next generation and others in need of meaningful job opportunities. Not only is this work important for our communities, it gives our members great opportunities to be invested and involved in helping others.

Exclusive Business Benefits and Savings: With inflation and the rising costs of doing business, all businesses are looking for ways to decrease costs while still offering great service and benefits. HBA’s exclusive member-only benefits like our medical insurance, fuel, credit card processing, workers comp, home warranty, and manufacturer’s rebate programs can save many members thousands of dollars or more each year while helping strengthen your employee benefits.

HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

member notes

Connect with us at HBApdx.org

HBA Councils Provide More Than You Think!

BY: JODI BAILEY, HBA DIRECTOR OF MEMBERSHIP

As we wrap up 2023 and ring in 2024, I would like to shine a spotlight on an important way our members can connect at the HBA: by joining a council. We currently have four councils that you can join, the Professional Women in Building Council (PWB), the Remodeling & Custom Building Council (RCB), the Home Performance Council (HPC) and the Portland Building and Urban Development Council (PBUD).

Joining a council provides invaluable benefits: • • • • • •

Learn how to sharpen your focus and passions within the industry Have an opportunity to share your talents and expertise with peers Receive focused education based on what’s important to you Find a mentor or become one Develop and grow your leadership skills Build and deepen your relationships and networks

I am excited to share what all of our councils are all about, but in this issue, I will highlight the Professional Women in Building Council and share their goals, purpose, and focus.

The PWB Council is entering its 10th year since being chartered by the NAHB. This council is made up of dynamic, talented, energetic and driven members and leaders. PWB members are builders, remodelers, suppliers, marketing, sales, realtors, finance, trades, and more. This group is passionate about many pertinent topics, the most notable being education for professional and personal development, building community, workforce

development, and advocacy. In the the council focused on lifting women up in their construction careers. The PWB council started mentoring groups, connected women across the six counties our HBA covers with PWB members around the nation, and additionally focused on volunteering with our Home Building Foundation to help provide shelters for our temporarily house-less community members. In 2023, the PWB started the PWB Scholarship Fund with our theme of “Building Better Together”. This group participated in great volunteer projects, brought attention to the lack of women in the residential construction industry in member and consumer events, and held an amazing PWB Retreat with phenomenal and inspiring speakers as well as assisting other OR and WA HBA’s to start their own PWB Councils! They have exciting plans for 2024 to keep providing all of this, breaking barriers and building the dreams of women and members like YOU! Jump in and get involved or join if you aren’t a member.

During 2023, the Council has already raised $10,000 and at our PWB Anniversary Breakfast on Nov 9th, where we kicked off the 2024 year of “Breaking Barriers and Building Dreams”, they raised another $2,000!

Next issue we will spotlight our RCB Council!

Contact Jodi Bailey at jodib@hbapdx.org for more information or call 503-504-5611.

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HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

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2024 HOUSING Home Building Association of Greater Portland

——————————————— P R E S E N T E D B Y ———————————————

On Thursday, November 2, 2023, the Home Building Association of Greater Portland hosted the annual Housing Forecast at the Oregon Convention Center. More than 500 industry professionals and government officials gathered for this informative breakfast highlighted by insight and analysis with unique perspectives on the housing industry.

DR. ROBERT DIETZ

The 2024 Housing Forecast presented

by PARR Lumber featured NAHB Chief Economist/SVP Dr. Robert Dietz, among other guest speakers and economists. They discussed what 2024 holds for the housing market and our industry as a whole, including economic and building issues, as well as trends and predictions related to different market segments such as multifamily, single-family, infill, and remodeling.

JOSH LEHNER

Josh Lehner, Economist with the Oregon Office of Economic Analysis, focused on relevant housing and economic data at the state and local level. Mr. Lehner’s presentation included housing related data and foreseeable challenges from his perspective, and the forces driving the Metro Portland market.

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HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

In addition to economic forecasts and industry insights, we were honored to recognize the recipients of two special awards: The Hillsboro City Council with the 2023 Ernie Platt Memorial Public Servant Award, honoring their public service and support for housing in the region, and Nate Bond, CEO of Pacific Crest Custom Cabinetry, with the 2023 HBA Lifetime Achievement Award.

Hillsboro City Councilor Beach Pace accepting the 2023 Ernie Platt Memorial Public Servant Award.

Pacific Crest Custom Cabinetry CEO Nate Bond accepting the 2023 HBA Lifetime Achievement Award.

Special thank you to our exclusive Builders’ Circle members – we appreciate your support!

Thank you sponsors

HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

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performance building

Connect with us at HBApdx.org

Building Science Program update BY: CAROL EISENLOHR, BUILDING TOWARDS BETTER LLC AND HBA BUILDING SCIENCE CONSULTANT

The building science program has had a lot of growth in 2023 providing new educational opportunities for HBA members. We have had fun taking a little bit of BuildRight on the road with the BuildRight Roadshow offering sessions on Advanced Framing, Updates on New Codes, and Best Practices at different locations throughout the area. The Home Performance Council (HPC) has also taken their meetings to a new level incorporating presentations on innovative products and advanced building practices into their meetings to provide value to our High-Performance Builders. The BuildRight Conference was a great success providing 24 great sessions to over 300 attendees.

OUR HPC MOTTO FOR NEXT YEAR IS “EXPECT MORE IN 2024!”

We will be expanding the BuildRight Roadshow to include a half day training that is individually tailored to your company’s needs.

The construction process is full of compromises.

Your construction team needs to have a clear vision of the outcome of choices made in the field. Experience, training, and an understanding of basic Building Science 101 can make a positive impact on decisions made in the field.

BuildRight 2024, Comfortable Buildings: Getting them Right!, will have an emphasis on High Performance HVAC, Advanced Building Practices, and Innovative Products. We are expanding to a two-day conference, moving to a new location, and the HOTT tour will follow the conference on that weekend.

WE ARE EXCITED TO FEATURE TWO KEYNOTE SPEAKERS: About Allison Bailes: Allison Bailes is the author of a bestselling book on residential building science (A House Needs to Breathe…Or Does It?) and the founder of Energy Vanguard, a building science firm and BPI Test Center located in Decatur, Georgia. The company’s focus is on residential HVAC design, consulting, and training. Dr. Bailes has a PhD in physics from the University of Florida and has been involved with the field of building science since 2001, when he built a high-performance home out of structural insulated panels.

About Mark LaLiberte: Mark LaLiberte is the co-founder and president of Construction Instruction. He has dedicated over 30 years to the building industry. Through his lectures, site assistance, Building Better Homes video series and his mobile App, he provides builders, architects and manufacturers with an in-depth look at the current and future state of housing. His work has earned him a Lifetime Achievement Award from the Energy and Environmental Building Alliance (EEBA), where he developed the highly acclaimed Houses that Work lecture series. The HTW Series has been delivered for over 16 years by the Ci team in 100’s of North American cities.

Save the Date in your calendars BuildRight April 18-19, 2024 and HOTT Tour April 19-21, 2024.

SEE YOU THERE!

Don’t forget to schedule your BuildRight Coffee Chat with industry experts!

Join the HBA Building Science Consultant, ETO and other experts every Thursday at 9am via Teams or Zoom.

Talk through code questions, address specific building challenges and find resources for better building practices.

To schedule your individual chat, contact HBA’s Building Science Consultant Carol Eisenlohr at 503-710-2910 or buildingscience@hbapdx.org.

The HBA Building Science Program is a technical resource available to HBA members free of charge, funded in part by Energy Trust of Oregon, Home Certified, OrePAC, Portland General Electric and NW Natural. If you would like to utilize the Building Science Program to create a continuous improvement plan focused on your building challenges or a plan to prepare for future code changes, contact Carol Eisenlohr, HBA’s Building Science Consultant at carole@hbapdx.org or call to schedule an appointment at 503-710-2910.

to advertise in the

C ON TAC T

Chris Sweet

971.204.7886

csweet@pamplinmedia.com

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HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

Portland Metro Area

Energy Efficient New Home Tour!

Tour homes with cuttingedge technologies and building science features including above-code energy performance scores and sustainable-building certifications.

SAVE THE DATE! APRIL 19-21, 2024!

BUILDERS: Ask how to showcase your projects/ homes in the show! Contact Carol Eisenlohr at 503-710-2910 or carole@hbapdx.org.

HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

OFFICIAL SHOW

HomesOfTomorrowPDX.com

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foundation news

Connect with us at BuildHopePDX.org

HBF Workforce Development: Reynolds Learning Academy Students of the Reynolds Learning Academy’s Trades Program had only been in class about a month but wasted no time plunging right into a challenging carpentry project.

BY: TERESA SPANGLER, HBF STAFF

Fortunately, Holt Homes sent master carpenters Evan Schakols and Jake Childreth to guide them. Reynolds had asked Home Building Foundation for a project at the beginning of this school year, and Holt Homes had offered to help.

HBF delivered materials so students could build a mobile coffee cart and a trash can enclosure for the homeless service provider Cultivate Initiatives.

The Reynolds Trades Program in Fairview focuses on exposing students to a wide range of jobs in construction. The 2023-24 class of 22 students is one of their largest yet, so having extra sets of hands was helpful. Holt’s Schakols made sure he was showing instead of telling the students what to do. For example, as they planned the top of their cart, he asked them to think about where they’d be drilling to make sure the screws were in the right place. Schakols and Childreth patiently tried to work with each student through the process. Schakols warned “The screw will pull you around where ever it wants to go” as students struggled to get the hang of using power drills.

The coffee cart and the trash can enclosure was designed to coordinate with cedar benches built by Sherwood High, which are also being donated to Cultivate Initiatives. Sherwood students built the benches for HBF last spring. HBF featured them at the 2023 NW Natural Street of Dreams, and the annual HBF Trap Shoot to promote our Education Partnership Program. Through HBF’s twoyear old program, students have built sheds, tent platforms, picnic tables, and even bee houses for service providers.

HBF previously donated picnic tables built

by Grant High School and Merlo Station High to Cultivate Initiative’s Menlo Park Safe Rest Village.

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The Reynolds students shared with us that they had some jitters, but felt great after finishing the project. A student known as “E” told us “It was fun, a little scary but we learned from it. You have to keep trying”. Fellow student Nehemiah took the lead with the drill much of the afternoon and told us he was exhausted.

“It’s a learning experience, you have to move a lot”. He admitted, his back was hurting after focusing so hard on the project. The students weren’t the only first timers. Holt Carpenter Childreth says “I wasn’t sure what we were getting into. It’s been fun bringing them up.

They’ll retain the knowledge as they go”.

Reynolds teacher Sean McFall tells us his students were more focused than usual with these industry experts in the room.

Reynolds took the building lessons a step further by taking a field trip to Cultivate Initiatives East Portland headquarters to deliver their handywork.

The students learned the benches, coffee cart, and trash can enclosure will center a job waiting area for people leaving homelessness. Cultivate Initiatives runs an “Intern” program, paying the crew to provide trash and graffiti removal, as well as light construction in the community to

help people re-enter the workforce. Their “Intern” program is led by people who were once homeless themselves. After the student delivery, Cultivate Initiatives Matthew McCarl told us “Thanks a ton for making this happen! That was so much fun!”

HBF delivers the raw materials to the school, then the project is typically worked on at a teacher’s own pace. Once projects are done, HBF or the schools deliver them to shelters. HBF pays for

HBF sends out Education Partnership Program information to all area high schools in the fall. Once a teacher expresses an interest, HBF secures lumber from industry suppliers such as IWP, Parr Lumber, Builders FirstSource and Sustainable Wood NW.

the program with grants and other fundraising, and our community partners often offer discounted or donated materials. Please contact Workforce Coordinator Teresa Spangler at HBF, Teresas@hbapdx.org if you’d like to be involved.

HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

foundation news

Connect with us at BuildHopePDX.org

HBF Fall Volunteer Projects - Member Spotlights Volunteers from Scott Edwards Architecture, Lennar, and Mountainwood Homes show up en masse to help improve the community via volunteer projects.

BY: TERESA SPANGLER, HBF STAFF

A hard-working team from Scott Edwards Architecture showed up on a Saturday Morning in October. The tables are now in place at Portland’s Sunderland Safe Park Village. Through partnerships like this one and working with school programs, HBF has donated tables or other important items to each of the transitional housing Villages the city operates.

This was a sustainable project, as SEA staff built the tables from lightly used wood salvaged from a temporary installation.

HBF has worked with this firm on several service (and shelter) projects. We appreciate their continued commitment to serving our community! Thanks to all who helped out.

A few days before, a busy team from Lennar Portland and Pacific Landscape Service worked nonstop to clean up the grounds for Do Good Multnomah’s St. John’s Village. HBF helped build the 20 tiny home village back in 2021, and returns often to provide maintenance and upkeep. Do Good spokesmen tell us the volunteer labor is an enormous help because they often do not receive money to maintain their facilities.

Volunteers trimmed brush, cleaned up paths, and put a new layer of bark on planting beds. Most impactful was the building of a new paver patio, thanks to the

pro team from Pacific Landscape. Meantime, volunteers from Lennar assembled a patio cover that will allow the patio to be used year around. Do Good’s Lisa Horness says the work doubled their outdoor area. “It basically made the village new again. And all of our participants living in that space are ecstatic about this beautiful new space that they call home.” Lennar has been completing quarterly projects for HBF, and we are always impressed by how hard they work.

We always have a great time with our friends from Mountainwood Homes who helped us build trails, refurbish benches, clear brush and construct split rail fencing at the Oleson Woods property. This is one of two affordable housing complexes owned

by Community Partners for Affordable Housing (CPAH) .

Since beginning the project in March, over 100 volunteers have helped HBF clear out invasive species to reclaim the natural areas of this apartment complex that was built in 2003. When HBF started, the natural areas were overgrown. The volunteer work crews found benches that could not be accessed and pathways that were impassable. Multiple truckloads of plant material and garbage were hauled away thanks to our great partners at Clean it up Mark.

HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

Robert Wood, of Mountainwood Homes explained “We’re full time builders all day every day…And so for us to figure out how to reach out and be involved in these projects to help what we see as needs of houselessness is very hard for us to do. We thank the Foundation for getting us get involved”.

We appreciate Heidi and Robert at MWH for planning such an amazing work party, which helps move us closer to completion of the project. Would you like to work on a shelter project with HBF? Contact Project Manager Chris McDowell to see what is coming up. Chrism@hbapdx.org.

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housing & industry advocacy

Connect with us at HBApdx.org

Key HBA advocacy results for 2023

BY PRESTON KORST, DIRECTOR OF PUBLIC POLICY AND GOVERNMENT AFFAIRS

through the council’s work.

As we wrap up another year, now is a good time to look back on what has been accomplished over 2023. Over the ups and downs of the last few years especially, it is important to recognize the outcomes we have achieved through the support of our members, staff, and advocates on the Government Affairs Committee. These two pages, although not comprehensive, gives an idea of what we have been working on and what you have helped make happen through your tireless effort, support, and dedication to the industry we all love. Not only do these successes support a vital industry and economic driver for our region, they also help reverse the impacts of our ongoing housing crisis.

HBA Nets Win with Metro’s River Terrace 2.0 Land Swap, Adds Land for 4,000 New Homes After more than a year of HBA’s advocacy and support, Metro Council voted 7-0 to approve the River Terrace 2.0 Land Exchange, which will clear the way for thousands more homes in Tigard. This is the first time a land-swap has been used in our area, with Metro removing roughly 350 acres of land in Damascus and Oregon City from the UGB in exchange for adding 500 acres near Tigard. This will result in roughly 4,000 new housing units to be built in the coming decade.

HBA Members Play Key Role in Shaping Governor Kotek’s Housing Production Advisory Council (HPAC) HBA’s members across the state have provided invaluable guidance and leadership on the Governor’s HPAC, including chairing 4 of the Council’s subcommittees. Together, they have put forth dozens of recommendations that have the potential to significantly increase housing production in Oregon.

HBA’s staff and members regularly participate in the state’s OHBA Government Affairs Committee to help formulate and guide recommendations

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HBA and our Members Advocate for Successful UGB Vote in North Plains In Summer of 2023, North Plains’ City Council voted unanimously to approve an 867-acre expansion of its Urban Growth Boundary, setting the stage for the next phases of this ambitious growth opportunity in Washington County. HBA worked closely with the city, and provided testimony in support of this expansion and plans to continue to apply pressure to ensure the expansion request moves forward and that nearly 1,000 units of new housing can be built.

HBA Scores Major Win with Permitting Consolidation Reforms in Portland With a 5-0 vote by the council, Portland formally moved to unify its disjointed permitting functions into a single entity. This was a huge win for builders in Portland who’ve long experienced the disfunction of getting a single permit through 7 different bureaus.

With 15 organizations co-signing, HBA took a lead role shaping the plan that will fundamentally reform how new housing is approved.

HBA Advocates for Housing Regulatory Relief Project HBA has worked with a coalition of partners to advance the Housing Regulatory Relief Project, which will tackle several barriers to housing production in the City of Portland. When implemented, this effort will roll back things like excessive regulations including bike storage, ground floor active use, bird-safe glazing, land use vesting timeframes, design review constraints, and neighborhood contact regulations.

HBA and Partners Defeat Capital Gains Tax Measure by 80% Perhaps the business community’s biggest win came in the form of 80% defeat of a misguided capital gains tax measure that would have funded

lawyers for Multnomah County’s eviction program. Having formally endorsed and contributed $25,000 to the “No Campaign”, HBA was a key partner in shaping and fighting this proposed tax that would have hurt builders, LLCs, and first-generation homebuyers.

Gresham Revises Land Use Vesting Rights in Code, Increases Timeframes HBA successfully led an effort to change how and when the City of Gresham determines vesting rights for approved subdivisions, allowing for more flexibility to design and construct subdivisions in the city. In spring of 2023, Council voted to change the timing in which planned subdivisions receive vesting rights from “Tentative Plan Approval” to “Final Plat Recording” allowing builders to receive up to 3 additional years to build phased subdivisions.

HBA Helps Shape Sherwood West TAC and Preliminary Concept Planning Sherwood’s Technical Advisory Committee (TAC) finished a Concept Plan for Sherwood West, taking an important step to bring nearly 1,300 acres into the Urban Growth Boundary, with the potential to generate over 4,000 new homes. HBA staff have been active on TAC several years, guiding the process to ensure that needing housing production targets were included. City Council approved this work in summer of 2023.

HBA Supports Member with Amicus Brief in Oregon City Appeals Court Victory HBA’s Building Industry Legal Defense fund (BILD) was tapped to defend against a city arbitrarily denying an application for housing. Following this, Icon Construction won a LUBA appeal and an Appeals Court case, clearing the way for over 400 homes to be built. This is a clear win for our industry’s ability to defend against NIMBY decisions and erroneous justifications used to deny new housing without objective standards.

HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

housing & industry advocacy

Connect with us at HBApdx.org

Key HBA advocacy results for 2023

BY PRESTON KORST, DIRECTOR OF PUBLIC POLICY AND GOVERNMENT AFFAIRS

HBA Hosts Executive Roundtable with Local Builders and PGE On fall 2023, HBA members and PGE leadership hosted a joint executive roundtable meeting to discuss shared priorities and resolve field-related issues between new home construction and utility services. This member-only roundtable provided the opportunity for builders to offer direct feedback to improve industry-utility relations, address supply chain challenges, and service and design issues.

HBA Secures HOLTE Cap Increase in Multnomah County Following 6 months of advocacy from HBA and other housing groups, the City of Portland and Multnomah County unanimously passed twin-ordinances that expanded access to a program leveraged by dozens of HBA members. They increased the number builder-initiated tax exemptions allotted, from 100 to 500 units annually. The Homebuyer Opportunity Limited Tax Exemption (HOLTE) program exempts property tax payments on newly built homes sold to a household earning a moderate income.

Portland’s Office-to-Housing Conversion Approved In March 2023, HBA staff testified to the Portland City Council in support of a new Office-to-Housing Conversion program. In an effort to revitalize the city’s downtown core, in addition to addressing much needed housing supply, Council voted unanimously to approve the incentive package which will make it less expensive and more technically feasible to turn underutilized office space into apartments.

HBA Engages with Hillsboro Leaders on HNA Framework HBA and our partners worked with City of Hillsboro council and staff to advise and advocate for planning processes that support a more robust economic outlook for housing production and job growth.

Through an alternative to their drafted Housing Needs Analysis, HBA advocated for more flexible (and ambitious) predictions of population and job growth opportunities.

HBA Continues to Pressure Washington County on Permitting + Inspection Wait Times As any builder in Washington County can attest, permitting and inspection timeframes have hampered our industry’s ability to deliver housing. Following over a year of advocacy, the Land Use and Transportation staffing has increased and wait times have dropped from alltime highs several months ago. Most inspection delays have dropped from a high of around 14-days to just about 2 days.

HBA Leads SDC Deferral Program Advocacy in Portland In spring of 2023, the Portland City Council heard testimony from HBA and nearly a dozen builders in favor of a proposal that will allow SDC payment deferrals for up to 2 years, with zerointerest. The proposal was approved by council and has been implemented by the Bureau of Development Services, potentially saving builders an average of $5,000 per unit on carrying costs and related fees.

HBA Hosts Portland’s Middle Housing Stakeholders for Happy Hour and Discussion On behalf of HBA’s Portland and Urban Development Council (PBUD), we convened over 40 stakeholders from our city’s middle housing program for a focused conversation and status update on newly allowed product types since the implementation of the city’s Residential Infill Project. Among the items discussed were permitting timeframes and processes, design improvements, proposed code-clean up issues, and a variety of items related to mutual goals to improve communication.

HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

HBA Nets ADU & Duplex Win in Beaverton Working with a member, HBA was part of a small group that helped advance an improvement to the way that the City of Beaverton administers ADU and duplex Right of Way (ROW) standards. In a recent memo, the City prioritized housing affordability by easing ROW standards previously required for the construction of ADUs and duplexes on a property with an existing residence.

City of Portland Freezes SDC Fee Increases In a rare but welcomed move, the City of Portland approved a one-year freeze on any increases to the city’s regular SDC fees for the coming year. This means that all fees will remain the same as they were for the last year, which range from $20,000 to $30,000 on average. This pro-development move, led by Mayor Wheeler also included a reduction in planned utility rate hikes for water and sewer services.

HBA Testimony Advances UGB Reserve Expansion in Newberg/ Yamhill County Following HBA’s testimony on August 31st, Yamhill County Commission voted 2-1 in favor of a proposal that could expand the City of Newberg’s Urban Reserve Area designations by nearly 100 acres. With the commission’s vote, this URA expansion request (brought forward by an HBA member) moved onestep closer to encouraging planning for residential development and the future construction of new housing in Newberg.

For more information on HBA’s advocacy efforts, to learn about the Government Affairs Committee or to support HBA’s Political Action Committee Oregonians for Affordable Housing, contact Preston Korst at prestonk@hbapdx.org

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THANK YOU!

Member Benefit Spotlight

Thanks for utilizing the Building Industry Insurance Trust (BIIT) program!

Below is a list of HBA Members currently using this member benefit to provide great health care at significant savings. We appreciate your business!

• 3J Consulting • Affinity Home & Design • Alan Mascord Design Associates, Inc. • Area Floors • B. Ayres Plumbing • BGC, Inc. • Brian Schmidt Builder, LLC • Buffalo Welding, Inc. • C3S Concrete Services Inc. • Central Air Inc. • Clark Lumber CO. • Cooper Design Builders, Inc. • Cox Electric, Inc. • D & D Concrete And Utilities, Inc. • Dealers Supply Company • Dorothy Tester Sales, Inc. • Dreammaker Bath & Kitchen Of Beaverton, • DRW Construction, LLC • Elemar Oregon, LLC • Elite Development Northwest, LLC • Everlife Home, LLC • Floor Solutions, LLC • Gagle Enterprises, Inc. • Gary’s Vacuflo, Inc. • GBS NW Inc. • Gutterman’s Supply Corp Of America • H2ome Certified, Inc. • Haworth Inc.

• Home Building Association of Greater Portland • Itech Painting Professionals, Inc. • Jenkins Painting, LLC • Lamont Bros, LLC • Landis & Landis Construction, LLC • LatinoBuilt Association for Contractors • LCD Excavation, LLC • Liberty Electric, Inc. • LPG Specialties, LLC • Maughan Design, Inc. • McHoldco, LLC • Michael D. Hughes Corp.

• Mountainwood Homes, Inc. • Northwest Portables, LLC • Noyes Development Co. • O’Neill Construction Group, Inc. • Oregon Finish Carpentry, Inc. • Oregon Lumber Co. • Pacific Timber Products, LLC • Panas, LLC • Pine Ridge Investment Corporation • Portland Coatings Inc. • Portland Floor Inc. • Portland Millwork, Inc. • Portrait Homes Northwest, LLC • Premier Central Vac, LLC • RK Electric, Inc.

Register today!

• Renaissance Development Corp.

• RJ Ramos Enterprises Inc. • Robben & Sons Heating, Inc. • Roost Homes, LLC • Rupp Family Builders Inc. orporated • Ryan Construction, LLC • Siegner And Company • SLS Customs Homes, Inc. • Stark’s Inc. • Terra Casa, LLC • The Anderson Group, Inc. • The Saunders Co, Inc. • Timberline Electrical Contractors Inc. • Tree Associates, Inc. • TS Consulting, LLC • Uncommon Cabinetry Incorporated • Valley Ridge Technology, LLC • Valley West Landscapes Corp • Verhaalen Painting, Inc. • Vista Structural Engineering, LLC • VYM, LLC • Walen Construction, LLC • Woodcrafters Lumber Sales, Inc. • Yorke & Curtis, Inc. • Ziebart Construction, LLC

Want to check and see if your company is eligible to take advantage of this great benefit program?

Reach out to Capital Benefit Services at (425) 641-8093 or sales@capitalbenefitservices.com for more information.

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HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

HBA advocacy in the community LOCAL GOVERNMENT AFFAIRS UPDATES • HBA OF GREATER PORTLAND

HBA Advocates for Development Code Flexibility in Gresham Following weeks of engagement with city leadership, HBA and several of our members building in Gresham appear to have notched several big wins for the industry that will likely ease regulatory standards for single family detached and middle housing construction. In the city’s Development Advisory Group meeting this week, our members learned that the city will be considering two key recommendations: •

•

Added Flexibility to Design Standards: Thanks to the engagement of HBA member Pacific Lifestyle Homes’ Samantha Zimmer, Gresham is considering revising its development codes to include a “menu-option” for meeting middle housing standards, including added flexibility to meet sidewall articulations, rear height limits, glazing, and garage/parking requirements. The possible changes include increased discretion for builders to develop 2-story detached units while supporting city goals for limiting perceived “bulk” at rear and side of setbacks, in addition to allowing for on-site parking flexibility.

Plat Approvals for Middle Housing Developments: In partnership with a local developer, HBA engaged in advocating for the City of Gresham to consider a change in how it approves plat recordings for middle housing developments.

Primarily beneficial to greenfield developments, the city is close to approving a new administrative route that would remove the required submission of building plans for middle housing projects, allowing them to submit and gain approval en masse, rather than lot-by-lot. This is in line with what other cities in the state are considering to foster more flexibility for middle housing projects, including the City of Eugene.

2024 Housing Forecast Data Now Available This year’s annual Housing Forecast gathered over 500 people from across the industry to hear expert analysis of the home building industry’s outlook for the coming year. This year, we heard from NAHB’s Chief Economist Robert Dietz and State of Oregon Economist Josh Lehner discuss both national and local trends that will have an impact on the near and long-term production of housing in our region.

We’re also grateful for former HBA and NAHB Chairman Jim Irvine for his skilled moderation of the event and its Q&A. Visit our website for a brief event recap and to access presentation slides from the event.

Thank you to our sponsors who helped make this possible, including Parr Lumber, Regence, NW Natural, and Standard TV & Appliance to name a few.

For more information on any of the below items, please contact Director of Policy and Government Affairs Preston Korst at prestonk@hbapdx.org

local governments can take to increase the production of housing at all levels. The day-long discussion consisted of six breakout groups that included funding for infrastructure, attracting national capital, land use and zoning, permitting reform, reframing language around housing, and reducing regulations. As our event facilitation team is still downloading notes from the day, we will plan to share a more detailed reporting of the group’s recommendation in the coming weeks.

HBA’s Preston Korst Promotes Housing Production at Kruse Way Economic Forum HBA’s Government Affairs Director Preston Korst recently represented our industry at a panel discussing housing production goals in the region. The event, sponsored by the Lake Oswego Chamber of Commerce and Buckley Law Group was attended by over 80 individuals in the business community. Other panelist included Metro Councilor Christine Lewis, Lake Oswego Planning Manager Eric Olson, and Patrick Barry of Barry & Associates. Preston expressed the need for more local governments to ease regulations and reduce the burden on builder by lowering SDC fees, leveraging more funding tools like urban renewal or tax abatements, and streamlining design review and planning processes. This is in addition to him expressing the need for both dense, infill development in addition to the need for more land to be brought into the Urban Growth Boundary.

HBA Rallies Support as North Plains UGB Expansion Challenged by Farmers Working with our partners at Westside Economic Alliance and the Realtors, HBA is leading an advocacy push in North Plains that is likely to impact the fate of a UGB expansion request totaling more than 800 acres for employment and housing growth. Following a successful campaign to adopt Ordinance 490, which garnered unanimous approval from the city council to approve a UGB expansion request, we have since learned that that effort is in jeopardy. In mid-October, several farmers submitted enough signatures (roughly 240 in sum) to the county elections that could set in motion a referendum on the city’s vote of approval. While the legality of such a referendum on a land use decision remains at question, HBA and our partners are actively engaging North Plains leadership and Washington County Commission, requesting that they move forward with the approval of this expansion request and not halt what has been nearly a decade of thoughtful and consistent planning.

Sherwood City Council Considers Final UGB Expansion Request

On November 2nd, directly following HBA’s annual Housing Forecast at the Oregon Convention Center, HBA co-hosted a day-long conference that gathered over 100 elected, government, and private sector leaders together to discuss and develop strategies that will increase local housing production. In partnership with Oregon Smart Growth, PMAR, and Portland Metro Chamber, HBA and nearly a dozen members took part in the co-creation of a series of strategies that

On Tuesday November 7th, Sherwood City Council will hold its first Work Session to discuss the fate of the city’s request to add over 1,200 acres of land into the UGB. Due December 1st, 2023, the city is required to submit its intent to expand its urban growth boundary and demonstrate financing plans to accommodate for growth to Metro. HBA and our members have been advocating for the city to adhere to smart planning practices and request for the entirety of Sherwood West to be brought into the UGB. We’ll know more following the work session, but plan to engage in a concerted advocacy effort that supports the industry’s intent to see all 1,200 acres added into the UGB.

HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

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HBA & Partners Host First Ever Regional Housing Summit

your business Where to get care during COVID, flu and RSV season BY: REGENCE

Over the past few winters, COVID19, RSV and the flu have hit vulnerable populations and strained hospitals. While prevention is key, it’s also important to know where to go for treatment when you’re sick.

Know your options before you need care Sign in to regence.com or use the Regence app and use the Find Care tool to locate care options near you. It’s also helpful to have a primary care provider (PCP) to contact when you or a loved one is sick. If you don’t have one, we can help you find one.

There are different options for getting care that can be faster, more convenient and less expensive than ERs:

Looking Ahead to 2024 Tax Law

BY DAVID LOGAN, NAHB DIRECTOR OF TAX AND TRADE ANALYSIS

DeLap Corner

As 2023 comes to a close, we must look ahead to 2024 and ensure we are evaluating any known or potential changes in tax law as the calendar turns over. Here are a few important things to note: • Bonus Depreciation: Bonus depreciation is set to decrease from 80% in 2023 to 60% in 2024. Bonus depreciation is an accelerated depreciation deduction that is provided as a tax incentive for taxpayers and businesses to invest in qualifying property by allowing them to deduct a large portion of their asset acquisition cost in the first year. The cost of the qualifying asset that is not deducted through bonus depreciation in the year the asset is acquired, will continue to be

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depreciated over its useful tax life. Alternatively, section 179 expense is still available and can also be considered for qualifying asset purchases in the year of acquisition.

• Net Operating Loss Provisions: The Tax Cuts and Jobs Act (2018) revoked the ability to carryback net operating losses. NOLs are only able to be carried forward under current law. If a taxpayer expects to have income in 2023, but has concerns losses may be sustained in 2024, it may be beneficial to consider loading up the end of 2023 with expenses to keep the 2023 tax bit to a minimum.

• Charitable Giving: Individuals are on cash basis so in order to receive a deduction for charitable donations on your 2023 tax return, the donation must be made before

December 31, 2023. Now is a great time to outline contemplated year end giving and also strategize the best method to give (cash, appreciated securities, etc.)

• 401k/IRA/H.S.A. Accounts: 401k deferrals made through payroll for 2023 must be done before the end of the year. Funding IRA’s or Health Savings Accounts can typically be done up to April 15th of 2024, for the 2023 tax year. However, it’s never a bad idea to fund these accounts early or ensure notes are made to fund these accounts by their respective due dates.

If you have any questions regarding year-end tax planning opportunities, please feel free to reach out to Joe Seifert, CPA at Delap. 503-974-5687

HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

your business Addressing Late Invoices BY: BILL JOSEPH

Legal Ease

Late invoices are not only an annoyance but can cause real problems on a project, especially where a lender is involved. An owner or contractor who refuses to pay an invoice received after project completion and final payment, may still be at risk of claims for non-payment, including lien and equitable claims. While a well-written contract and good project management techniques can help reduce the risks of non-payment claims based on late invoices, there is no perfect way to avoid such claims.

A well-written construction contract, whether it is a prime contract or a subcontract, should include payment provisions outlining such things as how and when invoices are to be issued and received, when invoices will be paid, and penalties for late invoices and payments. Typically, such provisions establish a billing cycle pursuant to which invoices for labor and materials delivered each month must be issued and received before the end of the applicable billing cycle— typically the end of the month in which the labor or materials were provided or, at the latest, the end of the next month.

Similarly, such provisions typically state that payments will be issued by the end of the next billing cycle after receipt of the invoice—usually the next month or within 30 days of receipt of the invoice. The billing cycle need not be the last day of the month. Rather, parties are free to set specific dates or days of the month by which invoices must be received and will be paid. Such provisions should also specify an interest rate for late payments. If no interest rate is specified in the contract or invoice, Oregon’s statutory default interest rate of 9% per annum will apply (Washington projects are subject to a 12% per annum default statutory rate).

While most residential construction projects are not subject to Oregon’s so-called “Prompt Payment Act” (ORS 701.620, et seq,), payments on projects that are subject to the Act must be made in accordance with the statutory deadlines, which require that owners pay prime contractors within 14 days of receipt of the prime contractor’s invoices and final payment within 7 days of the owner’s final approval of the work. The owner has 10 days after receipt to object to any portion of an invoice and can withhold up to 150% of the value of the disputed portion of the invoice but must pay the undisputed portion. This is different from retainage, which is limited in both Oregon and Washington to 5% of the contract price of the work completed as of the date of the invoice. Prime contractors must pay subcontractors within 7 days of receipt of payment from the owner. Unpaid contractors can suspend further performance upon 7 days’ advanced written notice. While parties can opt out of the provisions of the Act and apply different deadlines, they must provide advanced written notice of an alternative billing cycle, including in the contract and on each page of the drawings and specifications.

While a contract may also state that invoices received after a certain date will not be paid at all, such provisions are likely not enforceable or at least do not prevent an unpaid party

from seeking to collect under equitable theories of relief such as unjust enrichment and quantum meruit, wherein a court can award compensation even in the absence of a contractual right to payment in order to avoid unjust outcomes. Submitting a late invoice also does not prevent an unpaid party from seeking to record and foreclose on a lien, providing they do so Bill Joseph within the applicable statutory deadlines (75 days from the last date of work on Oregon projects and 90 days from the last date of work on Washington projects), unless the contract specifically states that submission of a late invoices constitutes a waiver of lien rights. Similarly, a lender’s loan provision that late invoices will not be paid, does not protect the owner against claims for nonpayment, nor provide a defense to a lien claim, which the lender might ultimately have to pay in order to preserve its security interest in the property.

In addition to a well-written contract, practicing good project management techniques can help reduce the risks posed by late invoices. I recommend that parties provide contractors and material suppliers with a summary of their billing procedures, separately from whatever may be written in their contracts, explaining the importance of timely invoicing. Parties should also reach out to all labor and material suppliers towards the end of a project, requesting that remaining invoices be submitted by a certain date. Parties may also consider using a web-based project management system that includes features for solicitation, submission and payment of invoices so as to track the financial aspects of a project. Finally, in order to prevent the filing of liens, progress payments and final payment should be conditioned upon the execution of condition and unconditional lien waivers, respectively, acknowledging receipt of payment, payment of subcontractors and suppliers, and waiver of lien rights.

In summary, while parties may not be able to fully protect themselves against the risks posed by late invoices, there are a number of contractual and project management techniques that may be employed to mitigate such risks. As always, contractors who are considering making changes to their contracts to address invoicing, payment and/or other such issues should consult with experienced legal counsel.

HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

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Bill Joseph is a partner at Portland law firm Dunn Carney, LLP and the leader of the firm’s Construction & Design Team. He also serves as the HBA’s general counsel. His practice focuses on business litigation and transactional law with a specific emphasis on helping those in construction and related industries.

safety solutions

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Drowsy Driving and its Risks

BY BRAD NANKE, OHBA

Drowsy driving is a major problem in the United States. The risk, danger, and often tragic results of drowsy driving are alarming. Drowsy driving is the dangerous combination of driving and sleepiness or fatigue. This usually happens when a driver has not slept enough, but it can also happen because of untreated sleep disorders, medications, drinking alcohol, or shift work.

No one knows the exact moment when sleep comes over their body. Falling asleep at the wheel is clearly dangerous but being sleepy affects your ability to drive safely even if you don’t fall asleep.

Drowsiness:

• • •

Makes you less able to pay attention to the road.

Slows reaction time if you must brake or steer suddenly.

Affects your ability to make good decisions.

Did You Know?

•

•

An estimated 1 in 25 adult drivers (aged 18 years or older) report having fallen asleep while driving in the previous 30 days.

The National Highway Traffic Safety Administration estimates that in 2017 drowsy driving was responsible for 91,000 crashes— resulting in 50,000 injuries and nearly 800 deaths. However, these numbers are underestimated, and up to 6,000 fatal crashes each year may be caused by drowsy drivers.

Who’s more likely to drive drowsy?

• • •

•

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Drivers who do not get enough sleep.

Shift workers who are people that work the night shift or long shifts.

Drivers with untreated sleep disorders such as sleep apnea, where breathing repeatedly stops and starts.

Drivers who use medications that make them sleepy.

Learn the warning signs of drowsy driving:

• • • • •

Yawning or blinking frequently.

Difficulty remembering the past few miles driven.

Missing your exit.

Drifting from your lane.

Hitting a rumble strip on the side of the road.

How often do Americans fall asleep while driving?

•

•

•

According to a survey among nearly 150,000 adults in 19 states and the District of Columbia: 4% of adults report that they had fallen asleep while driving at least once in the previous 30 days.1 People who snored or usually slept 6 or fewer hours per day were more likely to report falling asleep while driving.

Prevent drowsy driving before taking the wheel

•

•

•

•

Get enough sleep! Most adults need at least 7 hours of sleep a day, while teens need at least 8 hours.

Develop good sleeping habits, such as sticking to a sleep schedule.

If you have a sleep disorder or have symptoms of a sleep disorder such as snoring or feeling sleepy during the day, talk to your doctor about treatment options.

Avoid drinking alcohol or taking medications that make you sleepy.

Be sure to check the label on any medications or talk to your pharmacist.

HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

economic update

Connect with us at at HBApdx.org

Article header: Quarterly Economic Review and Outlook BY: METRO Metro’s Economists submit an overview of their Quarterly Economic Forecast to HBA’s Building Home Magazine so that members are able to stay up-to-date on economic outlooks at a national and reginal level. Articles are written by Metro staff and do not necessarily represent the opinions of Metro or the Metro Council.

Inflation-adjusted GDP soared in Q3 as consumption spending and exports exceeded growth expectations. GDP growth expected to slow in Q4 but remain positive. Inflation remains uncomfortably high but further easing expected. FED will likely lift interest rates in December to further quell inflation, adding to economic headwinds. The labor market remains highly resilient so far, defying economic conditions that normally cause aggregate employment to decline.

Economics Gross Domestic Product (GDP) The US has so far avoided the “mild recession” which many forecasters a year ago thought unavoidable, given that inflation was rising rapidly then and the FED’s stern commitment to forcefully slashing it. Many predicted that the engineered rise in interest rates would result in real GDP contracting during the first half of 2023. Instead, GDP slowed to about 2% annualized growth in the first 6 months, however, did not contract.

Preliminary estimates have real GDP in Q3 at 4.9% annualized growth, powered by robust consumer spending, more exports than expected, and inventory accumulations to restock storerooms and shelves emptied by the pandemic.

Employment growth was stronger and more resilient this year than expected which aided consumer expenditures.

Bottom line: More momentum from the beginning of the year is expected to carry forward, driving a surge in real GDP. The rise in Q3 growth is expected to be fleeting, however, as growth is projected to ease under the extended weight of higher interest rates and expectations of “below-trend growth” which will be needed to further shrink inflation.

Consumer Sentiment Consumer sentiment was beaten back

by Russia’s war in Ukraine, persistently high inflation, and higher interest rates which have dogged the economy. Sharply rising home prices and apartment rents

added to consumer woes as these rose faster than headline inflation and represent a large chunk (about 30%) of a household’s monthly expenses.

Sentiment readings fell to an all-time low of 50 in June 2022, but has since recovered halfway, albeit in fits and starts with fluctuating concerns over economic conditions in the US. In the last 3 months, the sentiment in October ebbed after two months in a row in which the index had changed very little.

Growing concerns over the lack of more improvement to consumers’ grocery bills had the index slipping once again.

Overall, the sentiment index remains well under its pre-pandemic peak with the current economic and geo-political conditions acting as a drain on consumer confidence.

Bottom line: The latest October reading fell -6%, but the monthly survey was taken before the attack on Israel by the Hamas terrorist group. The conflict carries the risk of spilling over into a wider Middle East conflagration that could pull in more terrorists and further inflame an already volatile situation. The risk to the economy is a potential supply shock and a steep price increase to crude oil from the region. This likely will drag down consumer sentiment and raise uncertainty in consumer expenditures and risk GDP growth.

Consumer Price Index (CPI) Inflation The focus by the FED has always been on reducing core inflation (price of goods less energy and food items) as their primary basis for prices in the US. The FED began lifting interest rates since March 2022 to quell inflation. Greater success has been seen in recent months as core inflation has fallen faster. The 12-month core inflation slid to 4.1% in September’s Bureau of Labor Statistic report but is still above the FED’s 2% inflation target. The headline inflation rate, which includes all items, recently fell to 3.0% this past June but has edged up to 3.7% as gasoline prices have rebounded from this summer.

HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

Bottom line: Inflation remains uncomfortably high. Consumers feel it at the pump and when they shop for groceries. However, the cost of producing the nation’s goods and services has eased greatly since supply-chain shortages have eased considerably. This bodes well for both headline and core inflation which are expected to gradually recede to the FED’s inflation target, but not until late2025.

Consumer Price Index (CPI) Inflation The US avoided what has become an annual crisis in the fall as Congress and the Biden Administration came to an agreement at the last minute to raise the debt ceiling. The legislation avoided the closure of the federal government in November. What does close are thousands of temporary government programs created by lawmakers during the pandemic in 2020 and 2021. Millions of Americans are set to lose Covid-19 pandemic-era benefits this fall. The expiration of these programs strips away economic assistance that millions of people have received and still rely on.

These include student loan forbearances, child-care stabilization funding, and other aids and transfer payments to families and businesses harmed by the government shutdowns. Some direct aid to state and local governments sunset later, in 2024.

Bottom line: The end of pandemicera relief aid will likely crimp consumer spending and other business activities going forward; however, this might nudge the economy into a slower growth trajectory that is consistent with the FED’s objectives to reduce inflation.

FED monetary policy Since March 2022, the FED has lifted interest rates 11 times and held them steady thrice, including consecutive meetings in September & November. The FED will meet mid-December and given the inflation’s stubbornness; pundits widely believe the FED will lift interest then. Some FED officials have indicated that they expect one more rate hike 27

economic update

Connect with us at at HBApdx.org

Article header: Quarterly Economic Review and Outlook before year’s end; however, if inflation reports for October and November are favorable, it might cause FED officials to pause entirely.

Bottom line: The FED may or may not be done with tightening financial conditions. It will be very cautious with the policy rate as to avoid causing a recession. Pundits assume the federal funds rate will likely be lifted by +25 basis points in December to a terminal rate between 5.5% - 5.75%. Credit conditions will remain tight until the FED has quelled inflation. Easing of the FED’s policy rate is unlikely to begin until the second half of 2024.

Mortgage interest rate Daily mortgage rates nudged above 8% in mid-October, although they have since receded to about 7.5% in early November. Interest rate fluctuations can be extremely fickle on a day-to-day to basis, but the trajectory in the near term is suggestive of it incrementally increasing. On the other hand, inflation seems to be cooling and the economy is setting up for slower growth in coming months which may stem rates from going higher.

Bottom line: Mortgage rates are linked with the FED’s policy rate, but it is not a 100% certainty. Widespread belief that there will be another increase in the FED funds rate will influence lenders to raise mortgage interest rates. However, mixed economic news as the economy downshifts will muddy the direction of interest rates but overall expectations are for a slight rise until year-end and then easing as it becomes clear that the economy has downshifted.

US Employment outlook The headline US unemployment rate stood at 3.9% in October, a mark which is inconsistent with the FED’s aim to slow inflation and the economy. Conditions in the US labor market seem surprisingly tight given how late it is in the interest rate cycle. September’s labor report revealed a job market that continues to be quite resilient although October’s labor reading was much subdued.

Employers hired 336,000 more workers in September and 150,000 in October.

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Bottom line: The labor market has proven itself to be sturdier than expected.

Higher unemployment is expected but the increase will be gradual. Job growth will need to slow significantly or pause to be consistent with expectations of slower national output.

Housing and Construction Construction employment boomed in the US while other indicators of activity were mixed. A sore point for prospective buyers has been the extraordinary rise in home prices seen in the last couple years. Cumulative price increases hit 45% by mid-2022 before edging lower to a 40% increase in early 2023 but are now back up and over 45% from home values just before the pandemic. Existing home sales have been restrained during the spate of elevated interest rates as few homeowners are willing to trade up to higher mortgage interest rates.

New housing unit production tapered off substantially and is down roughly -20% from a year ago. Multifamily construction has slipped recently and the slide appears to be accelerating.

Housing affordability (and rents) has been a deep concern and has steadily worsened since the FED began lifting interest rates. A trend which has surprised forecasters was the robust increase in industry jobs, topping over 5% last year and growth running about 2.5% this year. With mortgage rates, which haven’t been this high since the “dot-com bust”, pundits anticipated the residential market weakening and jobs going down with it. This hasn’t been the case as infrastructure development and investments in nonresidential structures aided in propping up sector employment.

Bottom line:Home prices are anticipated to rise but at a subdued pace while conditions in the housing market sort themselves out. Sector job growth is expected to pause as the FED’s rate increases take further hold and the overall economy cools.

Home production will be weaker but is expected to rebound when interest rates begin easing and affordability improves.

Regional economic trends Payroll employment continues to display a similar amount of labor market resiliency as with the national trends. The 12-month rate of job growth this year has averaged a steadying 3%, although this is down from an annual growth of nearly 5% the year before. Deceleration of regional job growth owed to losses in the manufacturing sectors and financial activities, which were impacted by higher interest rates. Employment in wholesale trade also declined, otherwise the balance from other service sectors more than offset these recent decreases.

Regional employment in the aggregate is well past the difficulties from pandemicinduced job losses, though the economic dislocations are unevenly distributed with some individual firms permanently out of business.

Forecast risk Chances of a “soft landing” seem like a foregone conclusion with threequarters of the year recorded in the books. The call for a “mild recession” has gone away and replaced with projections of US growth downshifting to a slower gear instead. Momentum carrying ahead from the first half of the year offers a bit of upside risk, especially if the labor market refuses to downshift. Headwinds from persistent inflation and interest rates staying up for too long carry a risk of sinking the economy lower than expected. An even larger risk is the uncertainty of conflicts overseas, including the Russia-Ukraine war and especially the Israel-Hamas war that threatens to engulf the Middle East.

Risks to the supply of oil from the Middle East could trigger broader economic dislocations.

Bottom line: Mortgage rates are linked with the FED’s policy rate, but it is not a 100% certainty. Widespread belief that there will be another increase in the FED funds rate will influence lenders to raise mortgage interest rates. However, mixed economic news as the economy downshifts will muddy the direction of interest rates but overall expectations are for a slight rise until year-end and then easing as it becomes clear that the economy has downshifted.

HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

center stage 7th Annual HBF Builders Breakfast presented by Delap LLP

Presenting sponsor Earl Pierce (Delap LLP) enjoying breakfast with other Foundation supporters

HBF Executive Director Brenda Ketah with HBF Volunteer of the Year award recipient Jeffrey Tamburro (NW Natural) and HBF Company of the Year award Recipient Mike Rovig (representing Lennar NW)

The featured panelists for the breakfast program included Robert Wood (Mountainwood Homes), Mike Rovig (Lennar NW), Kevin Smith (Taylorsmith Sustainable Construction), and Caroline Pope (Portland Street Response), and Lisa Horness (Community of Hope).

HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

HBF Executive Director Brenda Ketah leading the program to kick off the breakfast discussions

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center stage 2023 PWB Anniversary Breakfast & Housing Forecast Recap presented by Energy Trust of Oregon

Anne-Marie Nash (Contract Furnishings Mart), Dana Hennelly (Contract Furnishings Mart), Adrienne Butzer (Environmental Works), Andie Smith (Environmental Works), and Cindy Weeg (J Thayer Company)

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Kimberly Wheeler (Banner Bank), Ed Becker (Flyboy Brewing), Jeremy Ornelas (Samson Consulting), Jennifer Ornelas (Samson Consulting), Jason Reid (new member prospect), and Sheila Zentz Stephens (Stephens Homes LLC)

Incoming 2024 PWB Chair Darlene Van Kuren (The Crandall Group) with sponsor speaker Scott Leonard (Energy Trust of Oregon)

Welcoming Darlene Van Kuren (The Crandall Group) as the 2024 PWB Chair

Kaitlyn Carrier (Keller Kitchen & Bath), Jennifer Boss (Budget Blinds), and Mic (Budget Blinds)

HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME

center stage HBA Honors: An evening of cocktails and celebration

HBA Past President Karl Finkelnburg (KDF Enterprises LLC), Debra Finkelnburg, Patty Standring, HBA Past President Jim Standring (Westland Industries, Inc.), and Marcy Nielsen (HBA)

The Ostercraft Homes crew enjoying the evening before inducting their very own Ostercraft Homes President and Owner, Jeremy Osterholm, as the new HBA Board President

HBA Remodeler/Custom Builder of the Year award recipients Lauren Schumaker (Taylorsmith Sustainable Construction), Ray King (Taylorsmith Sustainable Construction), Bryan Chapman (Taylorsmith Sustainable Construction), Brooks Haxton (Taylorsmith Sustainable Construction), and HBA Company Associate of the Year award recipient Greg Lasher (TRC on behalf of Energy Trust of Oregon)

Katie Stilwater (Macadam Floor & Design), Christina Petersen (Macadam Floor & Design), HBA Individual Associate of the Year award recipient Sybil Fontaine (WFG), and Scott Carden (Macadam Floor & Design)

HBA CEO Dave Nielsen leading the festivities for the evening

HBA Past President Gordon Root (Stafford Homes & Land) pinning an official NAHB pin to our newest Past President’s lapel, Robert Wood (Mountainwood Homes)

HBA BUILDING HOME | December 2023 / January 2024 | HBApdx.org

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Exceptionally Thermador. Irresistibly Priced.

Visit our showrooms Lake Oswego — Pearl District — Outlet Store www.bascoappliances.com www.bascoappliances.com/outlet 32

HBApdx.org | December 2023 / January 2024 | HBA BUILDING HOME