Building Home August-September 2023

from the top

BY ROBERT WOOD HBA Board President

Lately, I’ve been thinking a lot about connections. We threw an open house party this summer to celebrate our new office space. The party made us look at our contacts to create the guest list.

We invited clients, trade partners, and friends and got a great turnout. It was easy to measure the event as a success because of the count of RSVPs. I saw people I hadn’t seen in years for no reason other than that life happened, and time ticked on.

It was interesting to see that many of our connections also knew each other. While catching up with a client, he tapped the shoulder of our lawyer, who walked by and said hello. I have known each person for years and had no idea they knew each other.

While people showed up to support us, the real value was that they could expand their networks and connect with like-minded people. We heard of several instances where our connections struck up a conversation, and now they’re helping to set up a job interview for their college-aged kid living out of state or meeting up to grab a coffee as new friends. While our guests may not have arrived with that result in mind, they appreciated the

opportunity to be in a room with interesting people, which made the party successful.

It’s essential to show up; that’s how connections get created. It’s also important to invite people to come together. There are plenty of ways to connect in business and life, and for me – the HBA is my way of staying connected. People get more comfortable with you the more they see you. The person who didn’t get business out of their HBA membership likely didn’t show up long enough to make the appropriate connections. Networking isn’t a one-hitwonder type of thing. It takes consistent effort, and you will start to reap the benefits. It’s easy to blow it off when you’re busy, but you’ll make the time if you create the routine now.

The excuse of “I don’t have enough time to get involved” is bogus. You don’t have to have a perfect attendance record to contribute. The HBA lets people get involved at different levels, and that’s why it works. Don’t feel you must contribute the same amount of time or resources as anybody else. Whether your intention is social, educational, or networking, the fact that you showed up to an event makes it better.

Today, social media and the constant news feeds make us feel like we’re connected. But to me, a genuine connection is sitting face-to-face with someone or picking up the phone. I challenge you to reach out and connect with someone. There are several HBA events to invite someone to check out with you this fall. Trust me, you both will get something out of it.

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How the Home Building Foundation is Putting PCEF Grant Funds to Good Use

BY: TERESA SPANGLER, HBF STAFF AND SAMANTHA THOMAS, HBA STAFF

Sustainable Careers

Home Building Association’s annual BuildRight Conference featured some new faces this spring. Among the crowd of seasoned professionals were people interested in starting careers in sustainable construction. HBA hosted graduates from four local adult pre-apprenticeship programs who attended seminars and met with potential employers for mock interviews. As HBA’s Building Science leader Carol Eisenlohr reported, the energy in the room was “contagious”.

The trainees came from four adult pre-apprenticeship programs, known as PATP or Portland Pre-Apprenticeship Training Program Consortium. Constructing Hope, a long-time HBF partner, leads the partnership with Oregon Tradeswomen, Portland Opportunities Industrialization Center (P.O.I.C), and Portland Youth Builders. All four programs provide free training for low-income people, the majority of whom are BIPOC and women. Many Constructing Hope trainees were formerly incarcerated.

HBA and HBF’s involvement with the programs comes from a 2022 grant funded by Portland’s Clean Energy Community Benefits Fund, known as PCEF. The Fund is paid for by taxes, and is intended to fight climate change with programs that benefit people who are most impacted; people who live in low-income neighborhoods, and disproportionately people of color. PCEF literature states the Fund will ensure opportunities in the clean energy field are inclusive of historically marginalized and under-represented populations.

A key PCEF grant category is Workforce and Business Development. Constructing Hope won a $7 million dollar grant to lead the consortium with efforts to employ trainees

in sustainable building careers. Because of HBF’s ongoing support of Constructing Hope, HBA and HBF were invited to be a part of the grant. During the three- terms, HBA committed to inviting trainees to “green” building programs such as BuildRight, Behind the Walls tours, and the H.O.T.T tour. PCEF funds also involve our partner EarthAdvantage. EarthAdvantage leads two-day intensives at each training program, and awards graduates a certificate in sustainable building. With employment as the focus of the PCEF grants, HBA and HBF are also working together to bring industry representatives to job fairs for the newly-certified sustainable builders. On Veteran’s Day last fall, the participants gathered at the historic Allen Temple CME Church for a career fair hosted by Constructing Hope. The church basement was crowded with current trainees

“The Portland Clean Energy Fund provides HBA and HBF an exciting opportunity to connect with adults who are receiving cutting-edge training about sustainable building practices. Our involvement with the PCEF Workforce efforts should bring our industry highly trained, diverse candidates who can help meet Portland’s demand for additional housing. In addition, we are bringing brighter futures as the trainees secure living wage careers to support their families.”

– Rachel Trice, HBA CMO

From local high school construction projects to participating in green-building consumer programs, the Home Building Foundation of Greater Portland is hard at work putting their Portland Clean Energy Community Benefits Fund (PCEF) grant to good use.

and graduates. HBF recruited four HBA member businesses that offered well-paying jobs to all who were interested. Fireside Home Solutions, Parr Lumber, Rick’s Custom Fencing, and Ridgecrest Custom Cabinets squeezed together side-by-side to talk with the trainees. Candace Hanks, with Ridgecrest, says it was an incredibly successful event. “We were able to refer candidates to another employer if we weren’t the right fit.”

HBF and HBA are currently planning the next job fair with Constructing Hope, with the intention to recruit up to 30 employers to meet with the consortium trainees. During the grant period, opportunities like this will help the residential home building industry hire diverse new employees, who are trained in the latest sustainable building techniques. At the same time, these trainees can bring economic stability to their families with living wage careers in our high-demand industry.

School Projects

HBF Project Manager Chris McDowell manned the tractor as it gingerly moved two large sheds into the small backyard behind Project Homeless Connect in Hillsboro. Two Glencoe High students who built the sheds watched their handiwork settle into place. Junior Rocco Marzilli says “It’s really nice, we are helping out people who need our help.” The sheds are the result of the Home Building Foundation’s efforts to grow the residential construction workforce by connecting with high school construction classes.

HBF began asking high school teachers if they wanted to help build projects for shelter providers in the fall of 2021. Reynolds Learning Academy Trades program toured our remodel for HomePlate Youth Services, then built cedar planter boxes for the campus. Sam Barlow High students built a shed for the home that HBF Builder Captain Jim Standring helped build for Anisa’s Place, a Clackamas facility for young women leaving sex trafficking.

These projects inspired HBF to apply for a National Housing Endowment “Career Connections” grant to start a “Picnic Table Project”. Along with funding from Bank of America, and donations from International Wood Products, we brought cedar to schools and an adult training program last year to build tables for shelters. The pilot proved tables were simple to build, and were easy for HBF to bring to nonprofits serving homeless populations. The tables were on display at the 2022 NW Natural Street of Dreams to show the public our efforts to connect with area classrooms.

HBF has now coordinated projects with nearly half of the local high school construction programs. In June, picnic tables from Cleveland High were delivered to Portland’s new Reedsway Village, giving HBF bragging rights that our student-built tables are now in use at all of Portland’s Safe Rest Villages, as well as other shelters across the Metro area.

HBF’s high school outreach comes at a fortuitous time. Oregon began pumping large amounts of money for school Career Technical Education after the 2016 passage of Measure 98, which created the High School Success Fund. Many construction-related training programs were added, resulting in 38 high school programs in Portland’s Metro region alone. Teachers have welcomed HBF involvement in their classrooms.

Glencoe’s sheds are a perfect example of a successful project. Teacher Todd Patterson and HBF Project Manager McDowell met at Project Homeless Connect to discuss where the sheds were needed. Parr Lumber dropped off supplies at Glencoe. HBF visited the school several times during the semester to see the progress and brought paint to match the shed to the shelter. Project Homeless Connect staff visited the school, to

explain to students what an impact they were making. Teacher Todd Patterson is eager to work with us again. “Students learn skills that benefit someone, and you combine this with construction skills, it’s a win-win for everyone.” The project garnered local television news coverage as well, to the delight of the students involved.

HBF is seeing a growing interest in the residential industry to become involved. HBA members Taylor Morrison, Holt Homes, and Fireside Home Solutions hosted tours for high school students this past year. For example, Builders FirstSource helped provide pre-cut lumber for cedar benches built by students at Sherwood High School. The benches will be in the HBF workforce display at this year’s NW Natural Street of Dreams and will be donated to a shelter after the show.

HBF will continue to perfect its high school outreach in the 2023-24 school year. We encourage the industry to join us as we make these vital connections. Together, we will build a pipeline of new talent to meet Portland’s home building needs of the future.

Constructing Hope, a NE Portland pre-apprenticeship program. Constructing Hope focuses on people leaving incarceration. All of its trainees are low-income and most are people of color. Constructing Hope’s free, 10-week construction program also includes job readiness counseling, life skills, and safety certifications, and helps the trainees with important paperwork such as obtaining their driver’s licenses.

As leader of the Home Building Foundation (HBF), I’m guided by our founding mission; to provide housing for all Portlanders, and to support construction training to build the workforce of the future. Our archives reveal a 1996 Home Building News quote from our founder Rudy Kadlub, saying the new Foundation would “Help people understand there is honor in providing housing for the country.” He hoped that HBF would support scholarships, apprenticeships, and hands-on training programs.

I’m proud to report the Home Building Foundation is growing our residential construction workforce efforts with transformative new initiatives. At a time when Portland faces a homeless crisis, an acute housing shortage, and a need for more trained construction labor, this work is more important than ever.

During our 26-year history, the Foundation focused on providing college scholarships. To date, we have awarded more than $300,000 to students pursuing college degrees in fields such as architecture, construction management, and engineering. Our scholarship program continues today, using the state of Oregon’s OSAC student scholarship portal for applications.

HBF’s outreach to adults training for construction careers took a turn in 2019, with a $75,000 grant from the Lennar Foundation. The grant was obtained through our affiliation with HomeAid as a part of its WORKS Program. We used the funding to forge a relationship with

During the pandemic, HBF provided funding to help Constructing Hope trainees with grants for laptops and Wi-Fi hotspots, so they could study at home. Our funding helped provide stipends to help students struggling to pay rent or utilities. HBF brought industry experts such as Nathan Young with MODS PDX, and Darci Fredricks of California Closets to speak with the trainees under a tent about careers in the residential industry.

Yet, as an organization, we believed we could do more. Our board voted to add a part-time staff member in the summer of 2021. Communications and Workforce Coordinator Teresa Spangler began reaching out to local high school programs to see how we could get involved with them. We connected with all four adult-pre-apprenticeship construction programs in our area. HBF attends statewide task force meetings regarding trends in construction labor and education. Our Workforce Development Advisory Group is yielding industry support. Our education and workforce programs are bringing in new sources of HBF funding through private grants and community support.

Historically, HBF’s model relied on our connections with the residential building community to provide labor and materials to build and remodel shelter facilities. We have completed close to 80 projects with a retail value of over $13 million with almost $5 million of in-kind donations of labor and materials. I believe our Workforce training and education efforts will achieve an equal level of success, and will create a trained, compassionate residential building industry to help Portland weather its current headwinds. We invite you to collaborate with us on our current projects and to help us dream of new programs to build for the future.

Brenda Ketah, Home Building Foundation Executive Director, on Workforce

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September August

August

August 10

HBF Executive, 8:30 am, HBA Offices

Zoom

Government Affairs, 10:00 am, Zoom

August 9

HPC Executive, 9:30 am, HBA Offices

Zoom

Trap Shoot Committee, 1:00 pm, HBA Offices

August 24

HBA Board of Directors + Leadership Retreat, 11:30 am, HBA Offices

August 16

PWB Executive, 10:00 am, HBA Offices

Zoom

Membership & Retention Committee, 12:00 pm, HBA Offices

Zoom

September 4

Labor Day –HBA Offices Closed

September 6

PBUD Council Meeting, 9:00 am, Zoom

September 13

HPC Executive, 9:30 am, HBA Offices + Zoom

September 14

HBF Executive, 8:30 am, HBA Offices + Zoom

September 20

PWB Executive, 10:00 am, HBA Offices + Zoom

Membership & Retention Committee, 12:00 pm, HBA Offices + Zoom

September 21

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

September 28

Finance Committee, 10:45 am, HBA Offices + Zoom

HBA Executive, 11:30 am, HBA Offices + Zoom

calendar : HBA happenings (events)

September August

2023 NW Natural Street of Dreams®

July 29 - August 20, 2023.

Denali Summit in Sherwood, Oregon

Cost: $27

Whether you are looking for your dream home, wanting to build a new home, or getting ready to remodel or redecorate your current home, the NW Natural Street of Dreams will have something for you. The 2023 NW Natural Street of Dreams features stunning homes on a main hub site called Denali Summit in Sherwood. HBA Members have been emailed 2 complimentary tickets to the show. Details and tickets at www. StreetofDreamsPDX.com. Bulk rate tickets available. Children 10 and under are always FREE!

Women in Construction Happy Hour at the NW Natural Street of Dreams® hosted by the Professional Women in Building Council

Thursday, August 17 5:30 pm – 7:30 pm

Denali Summit in Sherwood, Oregon

Cost: $45

Join us for our annual Women in Construction Happy Hour at the 2023 NW Natural Street of Dreams as we gather with the National Association of Women in Construction (NAWIC) and other women’s councils focused on the construction and trade industry. This PWB-hosted happy hour will feature dynamic speakers from our HBA membership base and other organizations that will share stories and insights into how the role of women in the construction industry is evolving as more women get involved and what support is needed to keep increasing these numbers.

All members are invited to register for this event and registration includes admission to the NW Natural Street of Dreams, appetizers, wine, and beer.

Chris Sweet

971.204.7886

csweet@pamplinmedia.com

Remodeling and Custom Building Council-Only Educational Event

Thursday, September 7

3:30 pm – 5:30 pm

Home Builders Association | HBA Conference Center

15555 SW Bangy Rd., Lake Oswego – First Floor

Cost: $50

If you are a member of the Remodeling and Custom Building Council (RCB), please join us educational round table discussion with a panel of our HBA leaders in Remodeling and Custom Building to lead this event with peer-to-peer discussion covering resiliency, growth in a changing market, building community during busy times, and more. The programmed part of this event will be followed by a Happy Hour bar with appetizers and drinks for networking and fun!

Home Building Foundation Trap Shoot

Presented by Parr Lumber

Friday, September 15

Time: 7:00 am – 4:00 pm

Portland Gun Club

4711 SE 174th Ave. | Portland

Cost: Team Registration $900 | Individual Ticket $250 | Spectator Ticket $75

Join Home Building Foundation at Portland Gun Club for a fun and exciting day of shooting competition. Teams of five will compete in two rounds of trap, participate in the always-exciting Annie Oakley competition and have a chance to win fantastic raffle prizes. Information and registration at www.BuildHopePDX.org/trapshoot. Sponsorship opportunities are still available!

Professional Women in Building Retreat

Friday, September 22 – Saturday, September 23 1:00 pm Friday – 4:00 pm Saturday

Location: The Bindery Event Space in McMinnville610 NE 4th St, McMinnville, OR 97128

Cost: $130

This year we are headed to McMinnville.

We will kick off the weekend with a dinner on Friday night September 22nd, then our conference on Saturday, September 23rd, will feature our Keynote speaker for the conference, Laurel Winkel, owner of SheBuilds Design & Kitchen Remodeling. She has a great story of starting this business after two other different careers, growing it successfully to a multi-million-dollar company with 11 employees.

We will have other speakers, a book study on The Game of Joy; The Secret to Creating Your Own Happiness (Even When Life Is Stressful) by Yasmin Nguyen, wine tasting, group activities, and time for great networking and relationship building!

Recognize an HBA member: Call for Annual Awards nominees

Do you know of an HBA Member who has played a major role in the association this year and deserves some recognition?

If so - let us know! We are looking for nominees for the Builder, Remodeler, Associate, and Trade Contractor of the Year Awards.

Please consider the person’s level of involvement, leadership they have provided, support they have given directly and/or through their company, and anything else they have done to contribute to the success of our industry and association this year.

Please email the name of the nominee and, if possible, a couple of sentences on why the nominee should receive the award no later than Friday, September 15th to Dave Nielsen at daven@hbapdx.org.

DISCOUNT GAS

For more information contact Kathy Temple at 541-408-5155 Kathy.Temple@ edstaub.com

ASSOCIATE MEMBER

Alto

Bryce Foster 503-754-6842 brycefoster2@gmail.com

Architectural Surfaces

Molly Newington 503-445-8637 molly.newington@arcsurfaces.com

BARNES International Realty

Jennifer Watson 503-954-4790 j.watson@barnes-international.com

Bittner & Hahs, PC

Nathan Pogue 503-445-4306 npogue@bittner-hahs.com

CREDIT CARD PROCESSING

For more information contact Tim Holstein at 503-975-0660 timh@ swipenow.com

BUILDER/REMODELER MANUFACTURER REBATE PROGRAMS

For more information contact Tami Walter, 503-684-1880 or tamiw@ hbapdx.org

CONSTRUCTION INDUSTRY CRIME PREVENTION COUNCIL

For more information: www.cicpp.com

WORKERS COMPENSATION

Qualifying HBA members can save up to 2% on SAIF.

BENEFITS

For more information, contact the Program Manager at Capital Benefits Group at 425641-8093.

BUILDER MEMBER

Elite Homes, LLC

Sean Foushee 503-819-3711 Sean@elitehomespdx.com

Greater NW Reps, Inc.

Pat Burke 503-305-5603 pat@greaternwreps.com

Pacific Office Automation Christie Wakefield 253-433-5855 christie.wakefield@pacificoffice.com

Presto Homes

Nicole Camara 503-387-6937 prestohomes@gmail.com

Right On Bracket

Pete Luciano 503-433-3406 info@rightonbracket.com

Scovill Construction & Contracting Services LLC

Alicia Scovill 541-331-6244 Alicia@ScovillCCS.com

Straightaway Cocktails

Vanessa Phillips 971-255-1627 events@straightawaycocktails.com

LGI Homes

Ian McGrady-Beach 509-998-6814 ian.mcgrady-beach@lgihomes.com

RHW Investments LLC

Wade Willers 503-819-9244 wadewillers@gmail.com

2-10

Acme

Camp’s

Don

Fisher Roofing

NW Natural

Paulson’s

Precision

Wendie

10-19

Alan Mascord Design Associates Inc.

Bernard Painting Inc

Creekwood Homes Inc

Don Guthrie, Inc.

DT Glass, Inc.

Haven Spa, Pool, & Hearth

Highland Ridge Custom Home Remodeling

Hood River Construction Co.

Intrepid Marble & Granite

Jarrard, Seibert, Pollard & Co. LLC

KDF Enterprises LLC

Lawyers Title Insurance Co.

MCM Construction Inc

McMinnville Gas Inc.

Milwaukie Lumber Co.

Murrayhill Remodeling Co.

Nagl Floor Covering

Noyes Development Co.

NW Development Inc.

Performance Insulation & Energy Services

PHK Commercial Construction LLC

Planning & Land Design

REBUILD - GC / CGR

Solid Wood Floors

Stone Center Inc

Stone Creek Building & Development Inc.

Surface Touchmark

Triad Fire Protection

Urban Visions Planning Systems

WaFd Bank

Western Pacific Building Materials

Western States Fire Protection Co.

Westside Drywall & Insulation

5-9 YEARS

Academy Mortgage - Tigard

Apostolos Painting

Buffalo Welding, Inc

Cadwell Landscaping LLC

Crane Point Industrial

Del Boca Vista LLC

First Tech Federal Credit Union

Great Northwest Gutters

Jenkins Painting, LLC

Oregon Restoration Co.

PANAS LLC

Performance Plus Restoration

Portrait Homes Northwest

Red Hills Land and Design, LLC

Tonya Shirk LLC

1-4 YEARS

AC General Contracting

Banner Bank

Craft Homes Northwest

Duchateau

FPS Construction LLC

GLC Homes

Global Electric

GTS Interior Supply

Hardline Hearth and Home

Hardman Geotechnical Services, Inc. - HGSI

Haworth Inc.

Homestreet Bank

Ichijo USA CO LTD

Infinity Excavating Inc.

Nova USA Wood Products

Pella Corporation

Premier Central Vac

Pulte Group

Roost Homes LLC

TECHIFI

US Bank Home Mortgage

Walen Construction, LLC

Ziebart Construction, LLC

Take advantage of these exclusive member discounts from HBA business partners, visit hbapdx.org/benefits for more info.

Get More from Your HBA Membership – Join a Council!

BY: JODI BAILEY, HBA Director of Membership

Networking at a large association can be intimidating at times, especially if you are new to the association, the industry, or the greater Portland area. We understand and that is why we often recommend that members join one of our councils in addition to their general membership. We have three councils that members can join: the Remodeling and Custom Building Council (RCB), the Professional Women in Building Council (PWB), and the Home Performance Council (HPC). Attending council meetings or events that are programmed by councils, with industry-specific content you may be knowledgeable about, is a good way to meet and feel comfortable engaging with other members, while also getting acquainted with your new HBA membership.

We have some great council events coming up in August and September for you to attend. PWB is hosting its annual Women in Construction Happy Hour at the NW Natural Street of Dreams which we do in partnership with NAWIC and other women’s councils focused on the construction and trade industry. This event is a great kick-off for the NAHB PWB week which is September 11-15th! PWBs across the nation will be having focused events and sharing valuable information during this time about women in building so make sure to check your email and social media for updates.

To finish off the month of September, we are excited to host our Annual PWB Retreat Sept 22-23. This year we are headed to McMinnville. This location has a lot to offer with great places to stay, eat, shop, and explore on top of absorbing the fabulous conference content we will be providing! Our Keynote speaker for the conference is Laurel Winkel, owner of SheBuilds Design & Kitchen Remodeling. Winkel will share her inspirational story of starting and successfully growing SheBuilds after two other different careers, inspiring women to show up for themselves, and that it’s never too late to make your dreams a reality while stressing why women are so

important to the construction industry.

Our other councils have great events going on too!

The HPC and our Building Science Program will be actively demonstrating great energy-efficient products in the Remodel and Building Science Exhibit at the 2023 NW Natural Street of Dreams (open until August 20) and they have education and presentations at every monthly council meeting and will be hosting educational events coming later this fall and winter.

In September, The RBC is hosting a council-only educational and networking event at the HBA office in Lake Oswego. A panel of our leaders will start off the discussion with round tables of members joining in for questions and peer-to-peer discussion covering resiliency, growth in a changing market, what tools and resources our members need to succeed, and more! RCB will have more educational and networking opportunities rolling out at upcoming All Member Happy Hours this fall and winter also.

Our councils have wonderful members and provide education to help you get connected and find a place in our HBA. If you get involved in an area that fits well for you, you will find that the HBA quickly becomes another family and caring community that you can turn to for support, education, and relationships, as well as networking and fun.

Our Membership Team is here to find out what your needs are for your business and career and then help you navigate what councils are a good fit for you and how to make the most of every event for your networking needs.

We hope to see you very soon!

Contract Furnishings Mart Says Goodbye to Founder

Provided by: Contract Furnishings Mart Staff

It is with sadness to announce Contract Furnishing Mart’s founder, Bill Cogdall, Sr. passed away on June 27, 2023, in Sun City West, AZ. He was 98 years old.

Before starting CFM, Bill Cogdall, Sr. was a home builder frustrated by the many problems he experienced with typical floor covering retailers like inconsistent pricing, inexperienced commissioned sales staff, limited product selection, and never knowing what crew would show up to install your job.

It was his idea to create a design-centered showroom with welltrained, salaried sales professionals who would provide excellent

customer service and consistent wholesale pricing. While these things may sound simple, they weren’t always done by other businesses. His vision from day one embodies how we do business to this day; providing great showrooms with endless options and an amazing staff to help customers find the right material for their project in a low-pressure sales environment.

What started as a two-man shop in SE Portland has grown to one of the largest floor-covering dealers in North America with 18 locations in Portland, Seattle, Central Oregon, and the Phoenix, AZ metro areas. We are proud to still live his vision and core values to this day. Bill Sr will be missed but not forgotten.

member notes

Rachel Trice Celebrates Ten Years on HBA’s staff

BY: DAVE NIELSEN, HBA CEO

Rachel Trice, HBA’s Chief Marketing Officer and SVP of Strategic Partnerships, celebrated ten years on HBA’s staff on July 31.

Rachel was hired in 2013 and thrown into her first NW Natural Street of Dreams right away, as our show had just started a few days earlier. Over the last ten years, she has helped us grow and strengthen our partnerships, oversaw the transition to our full management

Luke Morley Receives Honorary Life Member Status

BY: DAVE NIELSEN, HBA CEO

At its April meeting, the Board of Directors conferred Honorary Life Member Status to Luke Morley, who retired from Lakeside Lumber this year. Honorary Life Member status can be awarded by the HBA Board of Directors in recognition of extraordinary service to the Association over a long period of time.

Luke Morley served in many roles and supported HBA and the industry in a variety of ways during his twenty-plus year involvement as a member. He served on the HBA Board of Directors, the HBA RC/PRO Executive

A healthy partnership

received HBA’s highest member honor, the Lifetime Achievement Award, in 2019.

The Home Building Association of Greater Portland has partnered with Regence BlueCross BlueShield of Oregon and Capital Benefit Services to bring members more affordable health care through the Building Industry Insurance Trust. HBA members deserve a health plan that's tailored to your industry and focused on the well-being of your employees and your business. Powered by the most trusted name in health insurance, your plan offers access to a broad provider network and support from an award-winning customer service team.

at future events and enjoying his friendship, humor and heart for others.

members deserve a health plan that's tailored to your well-being of your employees and your business. Powered name in health insurance, your plan offers access to support from an award-winning customer service team.

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The Home Builders Association of Metro Portland has partnered with Regence BlueCross BlueShield of Oregon and Capital Benefit Services to bring members more affordable health care through the Building Industry Insurance Trust. HBA members deserve a health plan that's tailored to your industry and focused on the well-being of your employees and your business. Powered by the most trusted name in health insurance, your plan offers access to a broad provider network and support from an award-winning customer service team.

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performance building

CI live HVAC and IAQ takeaways

BY: CAROL EISENLOHR, BUILDING TOWARDS BETTER LLC AND HBA BUILDING SCIENCE CONSULTANT

Some of the takeaways from my recent class, “Mechanical Systems for High-Performance Homes” are below: Air leakage through HVAC ducting systems.

HVAC ducting has typical leakage rates related to the style. Hard Ducting has the highest leakage, before sealing, and has many more opportunities/seams to leak, therefore very time consuming to seal in the field. Average leakage on hard ducting before sealing is around 30% which could add a half ton to your system requirements.

Flex ducting which is the most used ducting in our market has about a 20% leakage rate before sealing and has less opportunities/connections to leak, therefore is faster to seal along with being faster to install in the field.

Rheia ducting system, a relatively new system on the market, has less than 10% leakage rate after install and most of the leakage occurs around the manifold connections which is easy to discover and seal.

Design and sizing are key to achieving sustainable systems that deliver comfort to your homeowner. Do Not Oversize! It is more important now than it ever has been for builders to hire an HVAC company that is doing the work and verifying energy efficiencies into their calculations for sizing equipment.

Commissioning: TEST FOR SUCCESS: If you measure it, it will improve:

• Benchmark current construction

• Pressures in duct work

• Duct leakage

• Temperature rise & delivery

• Run times

• Total system airflow

• Airflow at registers & outlets

• Refrigerant charge

New Technology/Product:

HVAC contractors need to check out this new device called measureQuick. It cuts down commissioning time, is more accurate than manual testing, and creates a report on the job that can be sent to the builder to verify that testing has been completed.

Joe Medosh from measureQuick gave us a great demonstration in our class on the new system that was installed. The website is www.measurequick.com and Joe’s email is joe@measurequick.com.

Last but not least: Improve your IAQ-9 effective strategies from low cost to higher cost by doing the following:

1. Measure and adjust flow rates to match required rates and don’t over-ventilate.

2. Size, set up, and adjust AC units correctly to optimize moisture removal.

3. Educate your homeowners about the proper operation of HVAC equipment and controlling their own moisture sources.

4. Use humidity sensing controls to adjust AC operation for humidity control.

5. Create tighter homes.

6. Review AC specifications and select equipment to optimize humidity control.

7. Use ERVs for ventilation.

8. Install whole-house dehumidifiers.

9. Switch to variable output AC units with specific humidity control operation.

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.

Night of Wine and Roses

BY: TERESA SPANGLER, HBF STAFF

The Home Building Foundation is the winner of more than $400,000 from the Kentucky Derby-themed 2023 Building Hope Gala and Auction. Presenting Sponsor California Closet, and host Tumwater Vineyards helped us draw a parade of hatwearing guests to the winery tasting room. Our loyal supporters outdid themselves with their outfit-coordinated hats, jaunty fascinators, and fedoras. Brightly colored summer dresses and creative suits gave the room a summer vibe, which matched the gorgeous weather outside.

The boisterous, sold-out crowd enjoyed live jazz music and signature cocktails at the pre-event reception before heading into the beautifully decorated tent. Veteran HBF supporter and Honorary Chair Jim Standring tells us standing on the podium made him feel old! “Looking out at the audience I saw so many younger faces! Those folks are the future of both the Foundation and the Association!”

Off to the Races

The live auction started out a bit like a horse race. The crowd bought up all the Golden Tickets prior to the auction beginning. The Golden Ticket gives the

winner the option to pick anything they want from the live auction. But, the ticket had a surprise three-way finish. First, HBF Board member Jason Behunin’s wife Jill won the raffle, but she donated her prize back to the auction. Next, HBF Board member Brian Boggs won but also put the prize back into the running. Finally, Randy VanaLant of Macadam Flooring and Design won the race. He chose a cellar worth of wine donated by the Home Building Association, thanks to the coordination by HBF Board member Jeremy Osterholm. In total, $20,000 was raised for HBF from the Golden Ticket alone.

A touching moment came when it came time for a long-time tradition, auctioning off long-time HBF supporter George Lorance’s vest. The vest had been sold off his back at the first HBF auction back in 1997. Sadly, Lorance passed away this past winter. The crowd showed their love and support for Lorance with lively bidding. But, fittingly, his daughter Tory Lorance Weiss made the winning bid on the vest. “We were thrilled to have Tory attend the Gala this year and it certainly turned out to be an emotional night that showed the love felt for George and his long-time support of HBF,” said Brenda Ketah, Home Building Foundation Executive Director.

As the live auction wound down, the crowd sat rapt with attention while they watched a video about HBF’s 2022 project

for HomePlate Youth Services. Following the video, Honorary Chairs Luke Morley and Jim Standring brought us into the final stretch by revealing to the auction crowd that HBF had secured a $50,000 matching fund from the Ritz Family Foundation to encourage the crowd to give. Their winning words helped bring the special appeal total to nearly $175,000. Chair Morley tells us he thought the energy in the crowd was terrific! “They were respectful and attentive at the appropriate times and gave with great generosity. Probably the best crowd I’ve seen in my 25 years attending the HBF auction.”

Volunteer Power:

Many volunteers are needed behind the scenes to make this event happen. The event theme featured a red rose motif. Our loyal group of Gala volunteers joined Michele Bundy the day before the event, and put together the gorgeous rose centerpieces. This volunteer team works for nearly a year before the event to make every detail perfect.

Hats off to all of the team, Honorary Chairs Jim Standring and Luke Morley, Chair Sybil Fontaine, WFG Title, Michele Bundy, Premiere Property Group, Adrienne Butzer, Environmental Works, Merissa Cooper, Directors Mortgage, Russ Eisenberg, Gold Heat, Julie Farrell, Directors

Night of Wine and Roses

BY: TERESA SPANGLER, HBF STAFF

Mortgage, Melissa Galland, DO&Be, Nicole Kypreos, California Closets, Heather Mootz, Fidelity National Title, Gwen Ozaki, Oregonian/Oregon Live, Brooklyn Robinson, Premiere Property Group, Andrea Smith, Environmental Works, Jeffery Tamburro, NW Natural, Samantha Tamtreng, Environmental Works, Brittainy Tiffany, Tiffany Home Design, Kelli Upkes, Realty Solutions. And a special shout out to Martina McDowell, a staff spouse who always is ready to help.

Gala Sponsors

Generous sponsors are key to giving the Gala its sophisticated touch. Thank you to Presenting Sponsor California Closets. Our Platinum Sponsors are Builders First Source, Performance Insulation, RidgeCrest Custom Cabinetry, Standard TV and Appliance,

Tiffany Home Design, Milgard Windows and Doors, and Delap. Gold Sponsors are NW Natural, OrePac, OregonLiveThe Oregonian, Pamplin Media Group, and Tumwater Vineyard. Silver Sponsors are Eastbank Mortgage, First American Title Insurance Company of Oregon, Lennar, Macadam Floor and Design, and Metropolitan Land Group. Bronze sponsors are Banner Bank, Environmental Works, Fidelity National Title, Holt Homes, International Wood Products, Lawyers Title, Parr, Payne West, PWB, Safe & Hound, Taylor Morrison, WDG National Title Insurance Company, and Royal Restrooms. A long list of community partners also donated items to both our live event and silent auction, which allowed folks who couldn’t make the event to still help support HBF.

Spreading the Wealth

The event raised spirits for other people in our community as well. Some of the red rose centerpieces went to the Good Neighbor Center for their dinner tables. Because of money raised by successful Galas like this one, HBF, and the building community have completed two remodeling projects for this transitional home for families living in homelessness. Continued financial support brings us hope we can continue to change lives, and make happy memories for many years to come.

If you’d like to become involved with the 2024 HBF Gala, please contact Kyle Ellerbe, Kylee@hbapdx.org.

Legislative Session Ends with Historic Wins, Nail-Biting Defeat

BY PRESTON KORST, HBA DIRECTOR OF POLICY & GOVERNMENT AFFAIRS

Last month Oregon’s legislative session ended with historic wins for housing, as well as a last-minute, nail-biting defeat on a key bill for the industry. Although the session’s challenges were plenty, (including a historic 42-day walkout) our affiliated state association staff and lobbying teams led by OHBA CEO Jodi Hack fought hard until the very last minute.

Similar to previous sessions, this year witnessed the introduction of an extensive number of bills – nearly 3,000. OHBA’s dedicated staff and Government Affairs Committee undertook the herculean challenge of carefully reviewing each bill, determining our association’s level of support, opposition, and decision to participate in the legislative process. In total, our association was involved in several hundred pieces of legislation at various stages of development—from legislative concepts to bill signings.

HB 3414: A Last-Minute Defeat

A top priority bill for our members and Governor Kotek was HB 3414, which would have ushered in new mechanisms to boost housing supply. The bill would have established the Housing Production & Accountability Office, whose aim would’ve been to assist builders in reducing permitting and land use barriers, in addition to limiting local government’s ability to deny an application for adjustment/variance from land use regulations if the project was within an Urban Growth Boundary (UGB).

It also included a one-time provision that would have enabled certain cities to bring land from the Urban Reserve into the UGB, allowing those with populations greater than 25,000 to expand by 150 net buildable acres, and cities with a population of less than 25,000 up to 75 net buildable acres. There was also an affordability tool included in this, totaling 30% for a combination of middle-income, workforce, and affordable multifamily rental units. OHBA issued several Calls-to-Action on this bill, multiple members testified on several occasions and staff worked tirelessly alongside legislators, the Governor, and her team in support of its progress.

However, in the very last hours of session, HB 3414 hit the Senate floor after passing out of the House. Eight Republicans and seven Democrats stayed strong by voting yes. But in the end, 10 Democrats voted no, while another 4 Republicans and 1 Independent were absent from the floor, leaving the bill to fail by just one vote. There was an opportunity for the Senate to take the bill up for reconsideration, but the Senate President would not allow the motion, leaving the vote as it stands, effectively killing the legislation.

Through it all Jodi Hack, OHBA’s CEO, led the hard-fought effort of this bill from concept to its near-passage in a session fraught with historic difficulties. Looking ahead, our association will continue to ensure the legislative concepts found within this bill will have other avenues to move forward—including the Governor’s Housing Production Advisory Council, a 25-member body of experts charged with developing an action plan to increase housing production in the state.

Housing Industry Wins

Of course, there were plenty of legislative wins that will benefit our industry. Below is a partial list of legislation that was important to our members. For more details, visit our website at HBAPDX.ORG.

• HB 2001 & 2889 – Establishing and Modifying the Oregon Housing Needs Analysis. Passed

• HB 3395 – Omnibus Housing Package. Passed

• HB 2198 – Reach Codes. Failed

• HB 2192 – Rebuilding in Forest Zones After a Disaster. Passed

• SB 82 – Insurance & Wildfire Risk Map. Passed

• HB 2984 – Office to Residential Conversions. Passed

• SB 644 – Easing Development of Rural Residential ADUs. Passed

• SB 4 – Utilizing the Federal CHIPS & Science Act (SemiConductors). Passed

• HB 2057 — Contractor Wage Liability Bill. Failed

• HB 2426 – Self-Serve Gas. Passed

• I-5 Bridge Funding Up-Date – $1B Secured to Move Project Forward. Passed

• SB 976 & HB 3010 – Eliminating 2nd Home Mortgage Interest Deduction & Adding Means Testing. Failed

We want to thank everyone who stepped up and offered time and expertise to support this immense effort. Especially important to our successes this session were those who provided in-person and written testimony, made phone calls, emailed legislators, and engaged through our CALLS TO ACTION – it truly made a difference! We didn’t get all that we wanted but we’ll keep working to prepare for our next opportunity…

housing & industry advocacy

LOCAL GOVERNMENT AFFAIRS UPDATES • HBA OF GREATER PORTLAND

North Plains City Council OKs First Reading of Proposed UGB Expansion

On June 5th, the City of North Plains Council approved the first reading and ordinance in a step to formally adopt the proposed plan to expand the city’s Urban Growth Boundary for housing and employment lands. Thank you to all HBA members who testified in favor of the proposal! As outlined in their UGB Expansion Draft Report, the city determined that they needed to produce 1,348 new units over 20 years, 558 of which were determined to be accommodated inside existing limits. The city plans include over 167 acres of new residential lands, which would include nearly 800 new housing units. The total land masses will be located on the north and west side of town, in addition to nearly 687 acres of land designated for commercial or industrial.

Lake Oswego Updating its Urban Forestry Plan

The City of Lake Oswego is looking for input from builders on a planned update of their Urban and Community Forestry Plan, which hasn’t been updated since 2007. Following the state’s Urban Forest Report which was completed in 2022, the City Council established the goal of updating their own plan to reflect best practices and new information. The purpose of the Urban and Community Forestry Plan is to bring together policies, practices, and plans related to Lake Oswego’s urban forest and serves as a planning and policy tool for managing its urban forest. As part of that effort, the City’s planning department is seeking to host a focus group with builders in Lake Oswego to get feedback and learn how they can support a healthy building environment.

Washington County Inspection Delays Beginning to Drop

There may be some good news coming out of Washington County, as inspection wait times appear to be dropping from where they were a month ago. Following several recent hires on the inspection team, the county has gone from conducting an average of about 140 inspections daily to over 200 inspections. This has meant that the delays have dropped from a high of around 12-days to about one week. While some inspection types are being completed faster, others like structural inspections can still take up to 10 days according to several builders. While still not ideal, this does represent some marginal progress in a section of the county’s Land Use and Transportation department, which has been struggling to meet service level targets since the pandemic hit three years ago. HBA staff and members who build in the county will continue to press county leadership and elected officials to fix these ongoing issues.

NAHB Spring Legislative Conference Recap

HBA member delegates and staff were in Washington D.C. this month for the NAHB spring conference to advocate for pro-housing legislation at the federal level. On June 7th, more than 700 members from across the country marched on Capitol Hill to ask our lawmakers take steps to address the nation’s

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

housing affordability crisis. Oregon HBA members and staff met with five of our state’s congressional delegation, including with Representatives Cliff Bentz, Suzanne Bonamici, Lori ChavezDeRemer, and Val Hoyle, and Senator Ron Wyden. Among the items we advocated for were increased production of transformers, reduced regulation of local codes, and increased funding for workforce development programs.

WES’ Updated Rules and Regulations went into Effect July 1st

Following nearly two years of internal work and strategizing, Clackamas County’s Water and Environment Services updated its Rules and Regulations program to provide more consistent and streamlined review criteria for new developments and ratepayers. The new rules went into effect July 1st, 2023 and will address items like annexation, EDU assignments, SDC payment processing, and the creation of reimbursement districts. The overall benefit will be that builders operating across WES’ several service districts will now experience greater uniformity when working with the county. HBA and our members provided testimony in front of the County Commission in May in favor of these new rules and regulations.

ICYMI: Metro Hires New Planning Director

In case you missed it, Metro has hired a new Planning, Development and Research Director. Catherine Ciarlo was hired several weeks ago to lead the agency’s teams that help the region plan for and manage growth. Ciarlo comes to Metro from the City of Portland where she led the Bureau of Transportation’s development permitting and transit programs. Before that, she worked at Jacobs (now CH2M) as a project manager. HBA is working to get Catherine in front of our Portland Builders and Urban Development Council and Government Affairs Committee to welcome her and discuss our association’s key priorities.

Beaverton Hiring Community Development Director

Following the pending retirement of Cheryl Twete, the City of Beaverton is hiring a new Community Development Director, who will have broad authority to manage the city’s housing growth and planning efforts in the coming years, particularly related to Cooper Mountain’s development. HBA will be sure to offer city leaders our hopes of seeing someone fill that position with a strong desire to work with builders in producing new housing for existing and future residents of Beaverton.

SDC Updates

It’s budget season for our municipalities which means that most if not all, are considering adjusting their SDC methodologies to accommodate for market conditions/inflation. While so far there haven’t been any wildly unreasonable increases to fees, there are a couple that are engaging. We would like to note that the City of Portland did formally

housing & industry advocacy

decide to freeze any increase to development-related fees in their approved budget. This was a welcomed nod to the development and business community from the mayor, indicating that Portland is open for business. We are hoping to carry this message to other jurisdictions in the area.

City of Portland Freezes SDC Fee Increases

Portland City Council approved a $7.1 billion budget, and in doing so provided some relief to the city’s business community and citizens. In a rare but welcomed move, the City of Portland has 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.

• SDC Fees: No Increase

• BES Rate Payer Increase: 3.15% instead of 5.15%

• Water Rate Payer Increase: 7.7% instead of 8.9%

• Parking Fees: 20 cent increase, instead of 40 cents

Gresham Vesting Code Approved

HBA successfully led an effort to change how and when the City of Gresham determines vesting rights for approved subdivisions. Following months of advocacy in partnership with local builders, HBA met with city staff, councilors, and community groups to ensure that new vesting timeframes allowed builders flexibility needed to design and construct subdivisions that are more safe, livable, and affordable. As approved, council voted to changed the timing in which planned subdivisions receive vesting rights from the “Tentative Plan Approval” to the “Recording of the Final Plat”. While a small change in language, it allows builders to receive up to three additional years to build out phased subdivisions in the city. This will help more builders avoid costly design requirements, and better plan for financing of larger projects.

For

Sherwood West Expansion Plans Moving Forward

The City of Sherwood’s long-running plans for an Urban Growth Boundary expansion passed a significant milestone with the conclusion of its Technical and Community Advisory Committees in May 2023. The Sherwood West Preliminary Concept Plan is a study of 1,291 acres of Urban Reserve lands located to the west and north of city limits. While an earlier version of a preliminary concept plan was adopted in 2016, it’s been updated to accommodate for recent developments including the completion of Sherwood High School, Washington County’s Urban Reserve Transportation Study, the city’s Comprehensive Plan, and the implementation of newly allowed middle housing options from HB 2001.

Washington County Update: Inspection Staffing

HBA members and staff met with Washington County’s Land Use and Transportation Leadership team last week to discuss ongoing challenges related to the county’s inspection processes. While many improvements have been realized on the intake and file check submissions, the wait time for simple building inspections have risen to upwards of 10 business days. The good news is that the county has successfully hired 4 new inspectors who will hopefully help ease the long delays many builders are facing. While there’s no official word on when we might expect to see improved services for inspections, we expect it to take at least several more weeks before new staff is fully trained.

HBA Provides Feedback on Local Housing Production Strategies

Several local cities are finalizing their Housing Production Strategies following state-guidance from HB2003. HBA has been working with staff in several cities (including Gresham and Beaverton) to ensure that any tools being considered to boost housing supply does not unintentionally hinder production of market-rate or affordable housing. If you’d like to learn more or offer your support for a particular strategy report, please reach out to HBA’s government affairs staff.

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

LOCAL GOVERNMENT AFFAIRS UPDATES • HBA OF GREATER PORTLAND

economic update

Quarterly Economic Review and Outlook

BY: METRO

Headline inflation fell to 4 percent but still above the FED’s target rate. Labor markets remain unusually tight and employment gains have been robust. The housing market seems to be on the upswing despite high interest rates. Shelter costs add to and complicate FED efforts to slash inflation. GDP growth has been hardier than expected with that momentum likely to carry into the second half of 2023.

Gross Domestic Product (GDP)

Inflation adjusted GDP increased at an annual rate of 2.0% in the BEA (Bureau of Economic Analysis) final estimate of Q1 2023 growth. This trend-like growth performance for the US exceeded earlier predictions which projected a strong likelihood of negative growth or more recent estimates of national output, including the BEA’s “second” GDP estimate of 1.3%. On an industry basis, manufacturing sector GDP sagged -0.7% while service sector GDP rose 2.6% in Q1. Forward-looking indicators such as the PMI (Purchasing Managers Index) confirm and anticipate the production of goods will contract further, but the service sector to still exhibit strength in coming months.

Bottom line: Upward GDP revisions to trend-like performance levels in Q1 suggest that the US was likely to carry that momentum forward into Q2 with GDP advancing near a 2% annual rate once again. As Q3 begins with the calendar flipping to July, monthly economic data suggest a bit of slippage in real GDP to 1.5% growth.

Consumer Sentiment

Consumer spending led the way in bolstering a strong revision to Q1 GDP. PCE (personal consumption expenditure) surged ahead at an above-average trend of 4.2% annual pace. This degree of spending is likely unsustainable given anticipated economic headwinds. The latest sentiment reading rose 8.8% in June, reflecting more optimism with inflation continuing to recede and the nation’s debt ceiling crisis being resolved. However, consumer

sentiments are still far below normal, wary of inflation and what actions the FED might take to bring down inflation.

Bottom line: Sentiments are likely to continue to improve incrementally if the US avoids a recession, but the low readings suggest Americans are still bracing for that as a potential outcome. While more upbeat and still spending, households are likely to exercise more caution in the second half of the year as lingering inflation and the FED’s tightening of monetary conditions clamp down on expenditures.

US Labor Market

The FED’s efforts to slow US economic growth and impede inflation have not yet yielded the decline that central bankers had hoped. US growth has exhibited far greater resilience than expected, especially labor markets. At current rates of unemployment and job growth, the US labor market remains tight. The unemployment rate in the US has bounced around 3.5% since a year ago. US unemployment claims have edged up in recent months but one must squint hard at the data to see the trend. Unemployment remains near the lowend, offering little indication of weakness in US labor markets at this juncture of the business cycle. Employment has rebounded above pre-pandemic job levels and the job market continues to register strong monthly gains, although it is clear that annual growth has begun to slow with the latest labor report showing growth of 3%.

Bottom line: The US labor market continues to register strong monthly gains, enough to absorb jobless claims and hold down the monthly unemployment rate. With recent GDP and other economic indicators registering positive or tapered gains, the current strength in labor market conditions is likely to carry forward for a while longer. Expected weakness in the US labor market will be deferred to subsequent quarters this year.

Consumer Price Index (CPI) Inflation

The inflation rate in the US is easing but is stubbornly high. The 12-month headline CPI rate fell to 3.0% in June – a much steeper decline than anticipated and the lowest rate since March 2021. However, part of the decline owes to what economist call “base effects” and not so much the economic fundamentals cooling down as much as the recent decline might seem to imply. The drop in the June inflation rate comes as a statistical anomaly that saw inflation peaking at 9.1% exactly a year ago. The easing of headline inflation masks the fact that earlier price jumps are now embedded in today’s prices in which consumers must pay for basic groceries and other purchased items. Shelter costs, which is for most Americans the largest monthly expense, continues rising and adding to consumer woes.

Bottom line: Inflation continues to decline, but not fast enough. The FED has hinted that they expect inflation will be a concern into 2025 and said that they will remain vigilant and act according to what the data reveals as appropriate actions.

FED monetary policy

The FED stayed its hand and did not lift interest rates when they last met in June; however, the central bank is likely to lift rates in July because inflation is still deemed too high. FED officials have not been shy in signaling the need to raise the benchmark FED funds rate by +25 bp (basis points). Pundits also noted the likelihood of an additional +25 bp increase in September. Today’s FED fund rate is nearing the height of past rates that had been associated with downturns in the US. Squeezing the remainder of inflation down to the FED’s 2% target may require more difficult and riskier choices that might just lead to a downturn.

Bottom line: A combination of stronger than expected economic news is pushing the FED to consider lifting interest rates in July and again in early-September. The economy today seems less at risk of contracting, thus giving the FED leeway to be more forceful in curbing inflation.

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.

economic update

Quarterly Economic Review and Outlook

BY: METRO

Mortgage interest rate

The cost of borrowing has creeped up this year, making home purchases less affordable. Daily mortgage rates briefly flirted above the 7% mark in early-July only to see rates drift lower and to settle into a narrow band around 6.9% for the 30-year fixed rate mortgage. Rates were about 3% 12 months ago.

Bottom line: If the central bank does what it has been hinting at for many weeks, lenders are likely to feel pressure to bump up mortgage rates to reflect the tighter monetary conditions imposed by the FED.

US Employment outlook

Labor market conditions remained tight. Employers in the manufacturing sector were still hiring despite order books and backlogs getting trimmed. The service sector was strong and continued adding to payrolls. The unemployment rate edged up one-tenth of a percent in June from the end of the first quarter due to slowness in manufacturing. The unemployment rate stood at 3.6% as of June, still a very low rate. Payroll employment continued with its resiliency and rose 2.5% y/y, adding 209,000 new hires in June alone.

Bottom line: The labor market continues proving to be more resilient than anyone had expected. However, higher

unemployment is still expected but the increase will be gradual. Strength in the labor market is making the FED’s job to stabilize prices a more difficult challenge.

Housing and Construction

Prospective home buyers did not see as much relief from lower home prices as affordability concerns driven by higher mortgage interest rates had erased any cost-savings buyers might have received. Inventories were extraordinarily narrow because many existing homeowners refused to trade up while current mortgage rates were at times twice the rate of existing mortgages. The result has been that home prices began surging again over the last 3 months and likely even higher than the official estimates given the lag in real-time data reporting. The NAHB housing market index (HMI) revealed homebuilder confidence was more upbeat, the index rose for the 7th straight time in July.

Bottom line: Home prices are again rising because inventory levels are thin, and production of new homes haven’t been able to keep pace with current levels of demand. Rents haven’t fallen off as sharply either as prospective home buyers have had to stay in place in apartments longer than expected.

Regional economic trends

The labor market is as tight in this region as anywhere else in the nation. The unemployment rate is as low as the US if not lower in recent months. Most regional industries are continuing to add to their payrolls; in particular, employment additions have been strongest in construction and service sectors, which were slower to recover since re-opening the economy from the pandemic.

Bottom line: The regional economy is mostly following the lead set by national trends.

Forecast risk

Our macroeconomic forecast advisor has shifted its view from calling for a contraction in the US to merely projecting growth to slow substantially below trend, removing a recessionary dip in their baseline forecast. GDP growth is expected to ease but stay positive. Labor markets continue to show resiliency, with a gradual increase to unemployment. The FED is assumed to stay aggressive and inflation to linger longer than prior expectations.

Bottom line: Recent economic data and forecast information offer more hope that reducing inflation down to the FED’s target rate will not require a mild contraction nor a recession.

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.

NAHB Housing & Economic Update

Slowing Building Material Price Growth Another Signal Inflation Is Cooling

BY DAVID LOGAN, NAHB DIRECTOR OF TAX AND TRADE ANALYSIS

According to the latest Producer Price Index report, the price level of inputs to residential construction less energy (i.e., building materials) was unchanged in June 2023 (not seasonally adjusted). March 2023 was the last month prices increased. The index has gained 0.5%, year-to-date, and has not increased 1% or greater in any month since March 2022.

The Producer Price Index for all final demand goods was unchanged in June following a 1.6% decline in May (seasonally adjusted). Year-over-year, the index declined 0.2% while the PPI for final demand goods less food and energy increased 2.0% (not seasonally adjusted). The growth rates of the indices for final demand goods and final demand goods less food and energy have slowed 12 and 15 consecutive months, respectively, neither of which has occurred since the inception of the series.

The PPI for goods inputs to residential construction, including energy, has decreased 3.6% over the past 12 months— the largest 12-month decline since October 2009. June was the second consecutive month in which prices were unchanged.

Gypsum Building Materials

The PPI for gypsum building materials fell 0.3% in June after declining 1.1% in both April and May. Other than lumber, no building material posted 12-month price increases as large as those of gypsum building products in 2021 and 2022. Over the past nine months, however, those increases have slowed from 20.3% to 3.0%.

Steel Mill Products

Steel mill products prices got a reprieve in June, declining 0.6% after a fourmonth period during which prices climbed 12.4%. Even after that period of rising prices, however, the index is 18.0% lower than it stood in June 2022.

Softwood Lumber

The PPI for softwood lumber (seasonally adjusted) increased 3.9% in June—the second increase over the past three months. Although prices are up 7.2% over that period, the index has decreased 20.9% over the past year and has fallen by more than half since its June 2021 peak.

NAHB Housing & Economic Update

Slowing Building Material Price Growth Another Signal Inflation Is Cooling

BY DAVID LOGAN, NAHB DIRECTOR OF TAX AND TRADE ANALYSIS

Ready-Mix Concrete

Ready-mix concrete (RMC) prices increased 0.5% in June. The PPI for RMC has risen each of the last 15 months, 27 of the last 30, and has climbed 12.3% over the past year. On a positive note, however, price growth slowed 0.8 percentage point over the month and the average monthly increase has declined from 1.0% in 2022 to 0.7% in 2023.

Services

The price index of services inputs (excluding labor) to residential construction increased 0.2% in June after a 1.0% decline in May. Prices have declined 8.8% over the past year but have stabilized in 2023, down 0.1% through June.

Freight Prices

The price of truck and rail transportation of freight decreased 2.1% and 0.4%, respectively, in June while the PPI for deep sea (i.e., ocean) freight increased 0.4%. Trucking freight prices have declined 13.7% over the past year with both long-distance (-15.1%) and local (-9.2%) motor carrying prices falling 9.2% and 4.1%, respectively. The 12-month drop in trucking prices is the largest decline since the inception of the data series in 2009.

Office Space in HBA Building Available!

Perfect for small business that is outgrowing its home office space

HBA has some office space that will be coming available when the current industry tenant moves out around October/November of this year. The space is currently about 600 square feet configured with three offices (two with exterior window views) and one workstation, but could be expanded to include a couple of additional adjacent workstation areas. It’s located on the 3rd floor of our Lake Oswego Building right off the I-5 freeway in the same general space as the HBA Offices. It includes plenty of free parking, complimentary access to our meeting rooms and the potential to access copiers (for additional usage fees).

For more information on availability, rates and to schedule a time to see the space, please email info@hbapdx.org and put “HBA office space” in the subject line.

TRUS JOIST ® NORTHWEST BUILDER RESOURCE CENTER

TRUS JOIST ® NORTHWEST BUILDER RESOURCE CENTER

You want to do it right, and we want to help you.

You want to do it right, and we want to help you. Get information for the Northwest Region including technical literature, products, and contact details for your local territory managers.

Get information for the Northwest Region including technical literature, products, and contact details for your local territory managers.

IF

YOU ARE:

IF

YOU ARE:

• Building with TJI® Joists, Microllam Parallam® PSL, or TimberStrand

• Framing FLOORS, ROOFS or WALLS

• Building with TJI® Joists, Microllam® LVL, Parallam® PSL, or TimberStrand® LSL

• Needing Help with Details and Special Conditions

• Framing FLOORS, ROOFS or WALLS

• Looking for Continuing Education Credits and wanting to attend an Online Webinar

• Needing Help with Details and Special Conditions

• Looking for Continuing Education Credits and wanting to attend an Online Webinar

• Having a Problem or Need a Repair/Field-Fix

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• Having a Problem or Need a Repair/Field-Fix

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your business

Before you head out the door, read these healthy habits for sun safety

BY: REGENCE

While long summer days full of sunshine are enjoyable, it’s important to practice sun safety and avoid potential health issues caused by overexposure to the sun including sunburn, dehydration and long-term health issues like melanoma (skin cancer). The sun can harm our bodies in a relatively short period of time. Experts agree that UV rays can damage your skin in as little as 15 minutes.

The strength of the sun’s UV rays varies based on factors like the time of day, your location, altitude and cloud cover. Regardless of the conditions outside, it is best to be prepared to safely enjoy the sunshine before you leave home. Here are some tips to enjoy the longer days in the sun safely.

Protect your skin this summer

It’s not just about sunscreen. There are several things we should be doing to protect our skin.

• Try to plan outside activities earlier in the day or later in the evening when the sun’s ultraviolet rays aren’t as strong. Stay in the shade or inside between 10 a.m. and 4 p.m.

• Wear clothing made with UV protection material or tightly woven fabric to cover up as much of your skin as possible.

• Choose a brimmed hat to shade your face, ears and back of your neck.

• Sunglasses that offer protection from both types of ultraviolet rays,

UVA and UVB, are the best choice for your eyes.

• Don’t forget your lips! Choose a lip balm with SPF protection.

• Use a broad-spectrum sunscreen with an SPF of at least 30, even on cloudy or cooler days. Reapply every two hours or more frequently if sweating or in water.

• Sunscreen can lose its effectiveness over time, check the expiration date to make sure it is still good to use. Consider a reef-safe sunscreen, which is free from chemical ingredients like parabens, PABA, Triclosan, oxybenzone, octinoxate and octocrylene, known to damage the ocean’s coral reef and other marine life.

Stay hydrated

As temperatures increase, dehydration can happen quickly, especially if you are being active. Watch for signs of dehydration like increased thirst, dry mouth, muscle cramps, fatigue, lightheadedness, or even a decline in thinking and cognition. Here are some tips to stay hydrated while enjoying the sun:

• Experts recommended we drink half of our body weight in ounces each day. For example, if you weigh 180 pounds, divide that by two and you get 90; the general rule is you will need to drink 90

Electric Vehicle Tax Credits

ounces of water daily.

• If you are active in the heat of the sun, you will need to drink more than the general rule, about 8 to 10 ounces of water every 30 minutes during exercise.

• As you sweat during exercise, you’re using your body’s electrolytes, which are important for hydration absorption in the body. These can be replenished by adding an electrolyte tab to your water or choosing a beverage that has sodium and potassium in it, preferably one without added sugar.

• Keep in mind that alcohol and caffeinated beverages can make you more dehydrated.

Plan ahead

If your day is taking you up a mountain or to higher elevations, be aware that UV rays are more intense at higher elevations. Prepare for your day and be attentive to the signs of sun exposure and dehydration.

If you encounter signs of dehydration, seek protection from the sun and rehydrate slowly – sip water, drinks with electrolytes, diluted fruit juice, or suck on ice chips or popsicles.

If the dehydration is severe, it’s time to see a doctor or go to the emergency room.

Remember to protect your skin, stay hydrated and plan ahead when you head outside to enjoy the sunshine this summer.

Tax Tips

The market for electric vehicles has grown rapidly over the last decade. Statistics provided by the International Energy Agency show that in 2014 the United States sold 54,000 electric vehicles. In 2022, the data shows a total of almost 1 million electric vehicles were sold in the United States. In 2022, more than 10 million electric vehicles were sold worldwide. Many forecasts expect the growth of electric vehicles to continue to soar for the coming decade. EV’s are becoming more than just simply passenger automobiles. In June 2023, the Portland Fire and Rescue

team introduced their first electric powered fire engine.

One of the advertised incentives when purchasing an EV are the federal tax credits. If you purchase a new plug-in electric vehicle or fuel cell vehicle in 2023 or after, you may qualify for a clean vehicle tax credit. Currently, the Inflation Reduction Act of 2022 has allowed for this tax credit to apply from tax years 2023 to 2032. The maximum tax credit is $7,500. However, not everyone will be able to take advantage of the EV tax credit. There are very specific requirements for the car to max out the $7,500 tax credit. It is also important to note there is an income phase out limitation to this

credit. If your modified adjusted gross income is over $300,000 for married couples filing jointly, $225,000 for head of households, or $150,000 for all other filers, then you will not be able to take the tax credit on your federal income tax return. It is important to be aware of the income phase out rules at the individual level if the car is purchased through a business that is a pass-through entity. The business may qualify for the tax credit, but the credit may be phased out or limited at the individual level if adjusted gross income is above the threshold.

If you have any questions regarding electric vehicle tax credits, connect with Joe Seifert at Delap. 503-974-5687.

UV Safety Awareness

During the summer there is usually a lot of emphasis on protecting skin from UV rays during the summer. But one must not forget about protecting the eyes—the most exposure to bright sunlight increases the risk of developing cataracts, macular degeneration, and growths on the eye including cancer.

July is UV safety awareness month. However, eyes are at risk to UV rays all year round. It is important to protect the eyes from UV rays in all situations by wearing proper eye protection—UV blocking sunglasses.

The hours between 10 a.m. and 4 p.m. daylight savings time (9 a.m. to 3 p.m. standard time) are the most hazardous for UV exposure in the continental United States. UV rays are the greatest during the late spring and early summer in North America.

Ultraviolet (UV) Light

Ultraviolet (UV) rays are an invisible kind of radiation that comes from the sun,

tanning beds, and sunlamps. UV rays can penetrate and change skin cells.

The three types of UV rays are ultraviolet A (UVA), ultraviolet B (UVB), and ultraviolet C (UVC)—

Here are some tips from the American Academy of Ophthalmology:

• Don’t focus on color or darkness of sunglass lenses: Select sunglasses that block UV rays. Don’t be deceived by color or cost. The ability to block UV light is not dependent on the price tag or how dark the sunglass lenses are.

• Check for 100 percent UV protection: Make sure your sunglasses block 100 percent of UV-A rays and UV-B rays.

• Choose wrap-around styles: Ideally, your sunglasses should wrap all the way around to your temples, so the sun’s rays can’t enter from the side.

• Wear a hat: In addition to your

sunglasses, wear a broad-brimmed hat to protect your eyes.

• Don’t rely on contact lenses: Even if you wear contact lenses with UV protection, remember your sunglasses.

• Don’t be fooled by clouds: The sun’s rays can pass through haze and thin clouds. Sun damage to eyes can occur anytime during the year, not just in the summertime.

• Protect your eyes during peak sun times: Sunglasses should be worn whenever outside, and it’s especially important to wear sunglasses in the early afternoon and at higher altitudes, where UV light is more intense.

• Never look directly at the sun. Looking directly at the sun at any time, including during an eclipse, can lead to solar retinopathy, damage to the eye’s retina from solar radiation.

center stage

HBA Golf Classic presented by Ferguson

The Regence team happy and ready to golf!

Standard TV & Appliance golf team staying warm and getting ready for an exciting tournament

HBA Golf Classic attendees enjoying dinner after an eventful day on the course

The Guild Mortgage team plus Zion Breaux (HBA) gearing up for a fun and competitive golf tournament

Home Certified golf team having a grand time

center stage

Building Hope Gala & Auction presented by California

Jodi Bailey (HBA), Yvonne Lerch (HBA), Rebecca Wyland, John Wyland (JT Smith Companies), Keith Trice, Rachel Trice (HBA), Lisa Girard (KGW), Thaddeus Girard, & Brent Olsen (Premier Central Vac)

Brian Schmidt (Brian Schmidt Builder) & wife Carli Schmidt

Katie Stilwater (Macadam Floor & Design) & Naquel & Randy VanLant (Macadam Floor & Design)

Sybil Fontaine (WFG National Title Insurance Co.) & Gwen Ozaki (Oregonian)

Darlene VanKuren (Crandall Group) & Drake Butsch (First American Title)

A NEW Italian love story

Fulgor Milano’s 48” So a Professional Induction Range

Get ready to fall hard. Fulgor Milano luxury appliances are the perfect match for your life and your kitchen. The 48” So a Professional induction range is available in two models - seven induction cooking zones, or ve induction cooking zones and a dual-zone induction powered griddle in addition to powerful primary and secondary convection ovens meticulously handcrafted in Italy for the North American home. Amore

LOGO HERE

Visit our showrooms

Lake Oswego - Pearl District - Outlet Store

www.bascoappliances.com