HBA Building Home April-May 2024

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OFFICIAL MAGAZINE OF THE HOME BUILDING ASSOCIATION OF GREATER PORTLAND
Quarterly Economic Update (p. 14)
Note from our outgoing Director of Membership (p. 15)
Longtime Member
Neu (p. 16)
OFFICIAL MAGAZINE OF THE HOME BUILDING ASSOCIATION OF GREATER PORTLAND APRIL • MAY 2024
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Metro
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Oregon’s 2024 Short Legislative Update

from the top

Events are back in full force at the HBA!

HBA Events are back and are the place to be and I’m not just talking about the big ones throughout the year. I’m talking about the little ones too. The monthly happy hours and luncheons and everything in between. We had record attendance at the pub crawl in December. They say nothing happens in January, yet we had a huge turnout at the happy hour at Pella Windows. February Happy Hour was at the Expo Center, and I ran into people for the next week who said they were there, and I never saw them as there were so many people. With a quick turnaround, our amazing staff put on a Happy Hour a few days later at the International Builders Show in Las Vegas. We took over an entire floor at Margaritaville with well over 200 people attending. In whirlwind fashion, we were back in town the next week to have our March event at Keller Supply with another great turnout.

The early 2020s were hard on us all from a social aspect. Our businesses might’ve done well but socially things changed for too long. At the end of the day, we should have been reminded that nothing beats face-to-face contact and a handshake or a fist bump or whatever you prefer. The conversations that are being had and the feedback I’m getting are proof that our events are providing that

social connection, that face-to-face interaction cannot be replaced. People are coming out in huge numbers, and they want to be seen and they want to connect with others, and they want to do business and they want to have fun while doing it. Talking with some of our regional Trade partners, they are seeing more activity at the greater Portland HBA than they are seeing in other organizations around the metro as well as other organizations in the West.

These events help shore up our membership and the stronger our membership the stronger our advocacy. They also have the potential to expand your business. Builders can find the trade partners you’ve been looking for. Everyone can have a zero-pressure visit to a showroom that they might not otherwise have visited. Trades people can get their names out there for builders and other trades to find them.

These are also an easy way for us to build our membership by bringing guests who are not members. I set a goal last November to attend every happy hour, and as many of the other events as I could possibly attend this year. I’m off to a good start so far and I challenge you to come out and say hi. My new goal is to meet every member in our organization at one of these events throughout the year and I can’t complete my goal if you don’t come out and say hi. I’ll be there and will do my part, now it’s up to you to come join me, and don’t come alone bring a guest. Collectively it should be our goal to have a Happy Hour sell out and increase our membership at the same time, which again increases our advocacy. I look forward to seeing you all at the next event. Cheers!

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Oregon’s 2024 Short Legislative Session Update

A glimpse into the proceedings of Salem’s session revealed a widespread emphasis on the production of housing

The home building industry had an impactful and advantageous legislative session this year. While the short conference lasted only 6-weeks, it was backed by more than a year of pre-session engagement with state legislators and stakeholders. This work was led by our stellar team of state lobbyists and partners at the Oregon Home Builders Association.

Not only did housing remain the primary focus of Governor Tina Kotek, it was seen as a top-level priority for other officeholders across the state, including legislative leadership. These priorities were bolstered by the executive order signed by the Governor in January 2023 which set the ambitious goal for Oregon to build at least 36,000 new homes per year, up from a current output of just 20,000. It was clear that the housing crisis our members have been battling for more than a decade has finally received the attention of our lawmakers in Salem.

And while the 2024 short legislative session drew to a close without a Republican walkout, it didn’t end without its share of controversy. As some may have seen in the local news outlets, a great deal of public attention was paid to the debate over whether and how to repeal Measure 110, the state’s experimental attempt to decriminalize drug use and possession. After just a couple of

years of being approved by voters, the legislature effectively killed that experiment this session. House Bill 4002 passed with bipartisan support and will officially recriminalize hard drugs in Oregon. Under the new law, people caught holding small amounts of illicit drugs like fentanyl will now again face jail time. While this was not a primary focus of HBA for the session, we did have many Portlandarea members support this bill given the increased level of property crimes and open-air drug use near and around local job sites.

However, most notable in this session was the near-universal focus on housing production. While the industry had several priority bills that we supported, few were as critical as Governor Kotek’s priority housing package that made it through both chambers of the legislature and landed on her desk in late March. With OHBA’s support, this legislation paved the way for meaningful changes to Oregon’s historically rigid land use system. It also channels record investments in housing and infrastructure to local municipalities to expand the capacity for new housing. Additionally, another of HBA’s priority bills passed just before the session ended—a new act to prevent UGB expansion decisions from being referred to the ballot is on its way to the Governor’s desk.

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Below is a detailed list of the key actions from the 2024 Session:

SB 1537: This was the Governor’s priority housing bill and one we, and our state association (OHBA), had been actively working on and lobbying since the start of session. While it is just a start, it does contain several key provisions that should help make it easier to build new housing across the state.

• One-Time UGB Expansion Tool. This was a controversial centerpiece of the bill, which received vigorous objection from environmental groups. The tool essentially creates a new tool for local jurisdictions to do small, one-time increases to their Urban Growth Boundary for needed housing if certain conditions are met. Cities and counties can automatically expand their UGB by either 100 acres (for cities with a population greater than 25,000) or 50 acres (for those with fewer than 25,000 residents). There are also certain restrictions on applicability, including requirements for affordability (30% designated affordable). Additionally, no city may be allowed to expand if they’ve had UGB expansions in the past 20 years and at least 75% of that expansion area is not developed or shovel-ready. Whatever the limitations, this tool marks a seismic shift in our industry’s ability to finally loosen the stranglehold that SB 100 has placed on available lands for housing.

• Housing Accountability and Production Office (HAPO). A new Housing Accountability and Production Office (HAPO), is intended to act as a review and appeal avenue when developers have problems in jurisdictions that are putting up impediments or violating state housing laws. The goal is to have a centralized place for the state to review and administer mitigation resolutions for local disputes that slow or reduce a builder’s ability to create new and needed housing.

HB 4026: Weeks of direct lobbying in Salem have delivered a real success for Oregon’s housing industry in Washington County. This last summer, the North Plains City Council adopted Ordinance 490, which aimed to expand the city’s Urban Growth Boundary by roughly 800 acres and could create up to 1,000 new homes. However, in mid-October, several farmers submitted enough signatures (roughly 240 in sum) that set in motion a referendum on the UGB decision. While the legality of such a referendum on a land-use decision remains at question, HBA and our partners succeeded in getting the legislature to pass a bill that effectively blocks all UGB expansion votes from being challenged by referendum. This bipartisan bill is retroactive, meaning it will likely remove the referendum from even appearing on voters’ ballots. While we do expect a legal challenge in this case, we are thrilled with the last-minute victory which should help protect future Urban Growth Boundary decisions from further contests. A special thanks to OHBA’s Jodi Hack, Oregon Property Owners Association Dave Hunnicutt, and Samantha Bayer for shepherding this bill over the finish line.

HB 4063: This bill requires counties within Metro’s boundaries to plan for needed housing on urban unincorporated lands. This will help shape the future planning capacity of unincorporated Washington and Clackamas counties for a more strategic and thoughtful growth plan. It may also help deliver new financial resources to locations that do not have the jurisdictional planning tools to be competitive to grab them. It also allows a housing developer with a pending application to opt into amended local land use regulations to capture benefits enacted by local rule changes. Additionally, it will allow serial middle housing land partitions to be considered a single partition and extend the

applicability of middle housing land divisions to townhouses. Lastly, it now allows a city to administratively approve or terminate the property tax exemption for single-unit housing, rather than needing to gain council-level approval which can take weeks.

Budget Allocations: The Legislature invested hundreds of millions towards Oregon’s immediate housing and homelessness needs by funding shelters, supporting renters, and boosting housing production and infrastructure. We’ve listed some of the approved projects that we believe our members would be interested in reviewing.

House Bill 4134: appropriates approximately $21.9 million to cities across Oregon to fund infrastructure projects that will be completed within 24 months and directly benefit planned housing development.

SB 1564: In the last few years, the legislature worked to update local laws to allow more middle housing development in residentialzoned areas. This bill allocates $550,000 to the Land Conservation and Development Commission to create and adopt model ordinances for cities to help comply with building requirements.

SB 1537: Creates the Oregon Infrastructure Financing Authority and appropriates $75 million to the Housing Project Revolving Loan program, helping fund housing production.

SB 1530: This was the primary vehicle used to get many of the session’s key funding priorities out the door. Among other things, it set aside $101.4 million for direct allocations to cities across the state for 44 shovel-ready infrastructure projects. Additional funds were directed toward land acquisitions for affordable housing, climate-friendly energy home improvements, and warming and cooling shelters.

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OR short session HB 1530

• $15,000,000 for the Healthy Homes Repair Fund

• $3,500,000 to provide air conditioners and air filters to low-income Oregonians

• $4,000,000 for deposit into the Residential Heat Pump Fund

• $25,000,000 for distribution to Albina Vision Trust for the purchase and redevelopment of property on North Dixon Street in Portland for the development of affordable housing

• $5,000,000 to provide matching funds for deposits into individual development accounts (IDAs)

• $2,100,000 to the City of Albany for extension of water and sewer infrastructure.

• $3,000,000 to the City of Beaverton for the Kemmer Booster Pump Station to provide drinking water supply to new neighborhoods in Cooper Mountain Community Plan Area.

• $1,500,000 to the City of Butte Falls for wastewater treatment plant and lift station upgrades.

• $1,186,000 to the City of Chiloquin for water, sewer, and stormwater improvements for Street/King Kong Housing Development and Valley Street/Mountain Street.

• $3,000,000 to the City of Cottage Grove to install water, sewer, and stormwater infrastructure for a 35-acre parcel the city owns for housing development.

• $1,000,000 to the City of Creswell for wastewater treatment facility upgrades and connections to a regional treatment facility.

• $1,300,000 to the City of Culver for mainline sewer reroute to provide sewer to residential development.

• $1,000,000 to the City of Dallas for sewer and stormwater infrastructure upgrades for La Creole Node master plan.

• $6,000,000 to the City of Eugene for water and sewer infrastructure improvements along Crow Road.

• $1,900,000 to the City of Florence for water, sewer and wastewater infrastructure for four blocks of city-owned property to be developed.

• $1,000,000 to the City of Gold Hill for replacement of water distribution main line and improvements and upgrades to water treatment facilities.

• $3,000,000 to the City of Gresham for water, sewer, and stormwater improvements for the redevelopment of former Kmart property in Civic Neighborhood at NW Eastman Parkway and NW Burnside Road.

• $2,438,595 to the City of Hood River for water, sewer, and stormwater site improvements for 7.1 acres of city-owned land for housing development.

• $1,100,000 to the City of Hubbard for upgrades to a wastewater lift station, water system improvements, and wastewater system improvements.

• $500,000 to the City of Independence for sewer infrastructure for Polk Community Development Corporation on Gun Club Road.

• $1,705,000 to the City of Irrigon for water and sewer infrastructure for the Tumbleweed development and the Molly development.

• $100,000 to the City of Klamath Falls for a new sewer lift station for housing development.

• $250,000 to the Klamath Housing Authority for a new sewer lift station for housing development.

• $1,753,185 to the City of Lake Oswego for water, sewer, and stormwater infrastructure improvements for Habitat for Humanity development.

• $3,000,000 to the City of Lincoln City for a booster pump station for Spring Lake housing development.

infrastructure for residential housing development.

• $195,094 to the City of McMinnville for water, stormwater, and sewer infrastructure gap funding for housing development.

• $1,425,000 to the City of Madras for stormwater infrastructure for The Heights at Yarrow Apartments and Belmont Lane Apartments.

• $2,709,000 to the City of Manzanita for water and stormwater

Housing Production Advisory Council’s Final

Recommendations: We want to appreciate all of the work that several of HBA’s members dedicated in generating the Housing Production Advisory Council (HPAC)’s final report. The HPAC was a stakeholder group formed by the Governor to identify policy solutions that would increase housing production in Oregon. As part of that goal, HPAC delivered 59 concrete recommendations to boost our state’s housing supply. While several of these suggested policy changes made it into the Governor’s housing bill, we believe that next year’s longer legislative session will see even more made

• $945,000 to the City of Medford to construct a regional stormwater facility to serve the New Spirit development.

• $1,200,000 to the City of Monmouth for water, sewer, and stormwater improvements for Riddle Road development.

• $900,000 to the City of North Bend for stormwater and sewer collection system upgrades for Gloria Dei site development and water, sewer, and stormwater infrastructure improvements for Maple Leaf development.

• $3,000,000 to the Oak Lodge Water Services Authority for wastewater treatment facility upgrades.

• $1,650,000 to the City of Phoenix for water, sewer, and stormwater infrastructure improvements to extend the water line to service developable property.

• $2,000,000 to the City of Prineville for water, sewer, and stormwater infrastructure for multifamily development.

• $2,500,000 to the City of Redmond for water, sewer, and stormwater infrastructure for Northpoint Vista development.

• $1,500,000 to the City of Shady Cove for the development of the city drinking water system.

• $3,000,000 to the City of Siletz for wastewater treatment plant upgrades.

• $3,000,000 to the City of Springfield for sewer infrastructure improvements for Glenwood Riverfront area development.

• $3,000,000 to the City of Stayton for sewer infrastructure improvements along Ida Street and Marion from Evergreen to 4th.

• $2,865,000 to the City of Sutherlin for water, sewer, and stormwater infrastructure improvements for Oak Terrace Village housing development.

• $300,000 to the City of Talent for water and sewer system development charges for infrastructure and water, sewer and stormwater infrastructure improvements for housing development.

• $274,057 to the City of Tillamook for improvements for Jones-Knudson Apartments.

• $1,566,000 to the City of Tigard for sewer and stormwater infrastructure improvements for housing development.

• $3,000,000 to the Tualatin Valley Water District for upgrades to the pump station on SW 189th Avenue in Beaverton.

• $6,000,000 to Prosper Portland for the extension of NW Johnson Street and associated water and sewer utilities to support the construction of new affordable housing units.

• $6,000,000 to Prosper Portland for the construction of a new SW Water Avenue and associated water and sewer utilities to support new affordable housing units as a part of the OMSI District Master Plan.

• $4,000,000 to the Warm Springs Housing Authority for interior and exterior rehabilitation of two-, three- and four-bedroom houses used as rental units on the Warm Springs Reservation.

• $635,000 to the Linn-Benton Housing Authority for infrastructure and site utility costs for the Valor Place Apartments in Albany

• $300,000 to the City of Salem for an affordable veterans housing development in West Salem

• $3,000,000 to the City of Burns for water, sewer and stormwater site improvements for Miller Springs.

• $2,000,000 to the City of McMinnville for piping and pumps to activate a water pump station for developable lands.

• $1,500,000 to the City of Amity for stormwater infrastructure and road improvements for residential housing development.

• $640,000 to the City of Toledo for water, sewer and stormwater infrastructure improvements, as well as a traffic study.

into law. We want to offer a special thanks to HBA members Deb Flagan (Hayden Homes), Justin Wood (Fish Construction), Eric Olsen (Olsen Design and Development), and Natalie Janney (Multi Tech Engineering).

Again, we want to recognize the incredible work done to get these bills and funding requests from concept to law. OHBA’s team including Jodi Hack, Sam Bayer, and Scott Barrie helped notch significant victories for our members in the short-term, and will no doubt build on this year’s successes to make our association and industry stronger for years to come.

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HBA advocacy in the community

Portland

HBA’s most obvious political opportunity and challenge will be in the City of Portland, where recently passed charter reform will result in a new 12-member council, in addition to a new Mayor who’ll install the city’s first-ever City Manager. Currently, there are three main contenders for Mayor—all of whom are sitting city councilors. Commissioners Mingus Mapps, Rene Gonzalez, and Carmen Rubio are all vying for the city’s top elected seat. Additionally, there are roughly 70 candidates either formally running or expected to run to fill what will essentially be 12 vacant council seats. As one might imagine, there is significant resources and attention going to this first pass at reform, as many anticipate newly minted incumbents will hold significant political sway in the coming decade. HBA will be working with several business groups to support and elect a core majority of pragmatic, business-friendly candidates.

Metro

There are three seats up for election at the Metro Council, each of which is being held by an incumbent. Councilors Mary Nolan, Duncan Hwang, and Gerritt Rosenthal are all up for reelection to represent their districts for another 4-years.

Multnomah County

In Multnomah County, there will be a once-in-a-generation turnover of three out of five seats. Commissioner Julia Brim-Edwards, who was recently elected in May 2023 to fill Jessica Vega Pederson’s seat following her ascension to County Chair, will be up for re-election. Additionally, two other seats being vacated by term-limited Commissioners Sharon Meieran and Lori Stegmann will be up for grabs. The results of this election will shape the ideological majority on an important governing body that oversees essential services for the industry.

Clackamas County

In Clackamas County, there will be three key races that also have the potential to impact its governing majority—this includes the County Chair’s race, and two seats currently being held by incumbents Martha Schrader and Mark Shull (both of whom are running for re-election). Chair Tootie Smith has announced she is running for re-election, having drawn a challenge from former County Sherriff Craig Roberts.

Washington County

In Washington County, there will be two commission-level races that will be important to our members. The first, and perhaps most seismic, is the seat being vacated by Roy Rogers, the longest-serving County Commissioner in Oregon and a long-time supporter of HBA. Former Tigard Mayor Jason Snider has formally announced his candidacy to fill Commissioner Rogers’ seat. The other seat is the one currently held by Nafisa Fai, who is running for re-election.

Yamhill County

The Yamhill County Commission will also have an election for the commission seat currently being held by County Chair Lindsay Berschauer. The county has a three-person board of commissioners,

who choose to elect their chair consensus by vote. Chair Berschauer is anticipated to run for re-election, with a challenge expected from Newberg Farmer David “Bubba” King.

Hillsboro

The City of Hillsboro will vote for a new Mayor in 2024, replacing the outgoing Mayor Steve Callaway who was first elected in 2016. So far, sitting City Councilor Beach Pace is the only candidate to announce a run for Mayor. Hillsboro is a key jurisdiction for the HBA, and following years of proactive partnership with homebuilders, were recognized with the 2023 Ernie Platt Award at November’s Housing Forecast.

Beaverton

The City of Beaverton will also consider who will be its next mayor, with incumbent Lacey Beaty running for reelection. Beaverton is another important city for HBA and our members, with large comprehensive plans being drafted by staff, including the South Cooper Mountain area which includes more than 2,300 acres and will produce several thousand units in the coming decade, among other planned developments.

Lake Oswego, Wilsonville, Cornelius, North Plains, and West Linn

Some of the other races we’re tracking this cycle are for mayor in several cities including Lake Oswego, Wilsonville, Cornelius, North Plains, and West Linn. Each of these cities have incumbents sitting in their current roles, including Jeffrey Dalin (Cornelius), Teri Lenahan (North Plains), Rory Bailostosky (West Linn), Joe Buck (Lake Oswego), and Julie Fitzgerald (Wilsonville). Each person will have until March 12th to file for re-election.

Hillsboro Planning Commission Moves HNA Forward, With Alternatives Analysis

On January 24th, the City of Hillsboro’s Planning Commission voted to approve a proposed amendment to the city’s Housing Needs Analysis as drafted by staff. Following testimony from several HBA’s including Eric Peterson, and Marc Farrar, and Preston Korst, the commission agreed to include in its recommendation an Alternatives Analysis which entails more robust assumptions about how the city will grow. The city’s HNA is an important, and foundational document that will guide how Hillsboro manages future growth. The inclusion of this Alternatives Analysis is significant because it ensures Hillsboro has access to more realistic forecasting models and data points in helping it nurture growth. That translates to more flexibility in how the city makes future decisions about land use and growth. It would also allow the city and its residents to capture the return on decades of investments it made in infrastructure. The result will be more land for housing and employment—and greater prosperity for current and future residents.

HBA Nets Big Wins with Portland Housing Regulatory Relief Package, Inclusionary Housing, SDC Reforms

Following roughly a year of HBA advocacy alongside a coalition of partners, Portland City Council voted unanimously to approve a host of housing-related reforms and regulatory roll backs aimed at incentivizing housing production.

8 HBApdx.org | April / May 2024 | HBA BUILDING HOME For more information on any of the below items, please contact Director of Policy and Government Affairs Preston
prestonk@hbapdx.org
Korst at
LOCAL GOVERNMENT AFFAIRS UPDATES • HBA OF GREATER PORTLAND

HBA advocacy in the community

SDC Waiver Program Expanded to 120% MFI

On Tuesday, January 30, following testimony from HBA’s Preston Korst and Justin Wood, Portland’s City Council voted unanimously to approve a temporary increase to the income thresholds for city’s HOLTE and SDC Waiver program, allowing up to 120% MFI for households qualifying for homeownership projects. This will help expand the pool of buyers that can purchase homes built by developers accessing affordable housing incentives. The change applies to all applications received by PHB prior to March 1, 2024, and will need to be sold prior to July 1, 2026. This was an emergency ordinance, but may take PHB staff a month to fully implement.

Housing Regulatory Relief Package Passes

After nearly a year of advocacy and engagement with BDS, BPS, and individual commissioners, City Council voted to approve major portions of the Housing Regulatory Relief Project. The regulatory rollbacks were initiated by a 2023 BDS Survey of developers that identified dozens restrictive policies hindering housing production. Among 15 specific code changes, this package includes a reduction of bike parking requirements (including a permanent removal of the alcove requirement), automatic level-reduction of all residential design review requirements, increased land use vesting designations from 3 to 5 years, and temporary removal

of non-conforming upgrades and first-floor active use rules. Unfortunately, following testimony of over 40 people, HBA included, council did reject three amendments proposed by Commissioner Rene Gonzalez that would have removed Eco-Roof, Bird-glazing, and neighbor sign-postage rules. Still, this is a historic win for developers and will make it more affordable to build in Portland.

Inclusionary Housing Tax Exemption Benefit Increased

Council also approved an ordinance to increase incentives for builders participating in the Inclusionary Housing program, (typically for projects over 20 units). Builders can now access a full-building 10-year tax abatement in more neighborhoods, if projects meet 60% MFI thresholds. While the original program already allowed a similar incentive for projects built in the downtown core, it previously excluded Slabtown and inner-eastside neighborhoods from accessing the benefit. Following an IH Calibration Study, council moved to expand that benefit to apply to all IH projects built in a dozen surrounding neighborhoods, areas that have seen more significant growth in recent years. Read more about the program change, and access the new IH map. This will be a big lift for developers constructing needed housing in high-value areas, helping make it more financially feasible to actually add units to a proposed residential development.

HBA’s Political Action Committee, OFAH, supports pro-housing candidates and measure at the local and state level. We advance policies that support the entire housing industry while directly challenging antidevelopment activities. Our work ensures that Oregonians, regardless of income, have access to diverse and affordable housing options.

HBA BUILDING HOME | April / May 2024 | HBApdx.org 9
more information on any
For
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
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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.

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.

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.

THURSDAY CLOSING KEYNOTE SPEAKER

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.

THURSDAY CLOSING

KEYNOTE SPEAKER

Joshua Salinger is founder and principle of Birdsmouth Design-Build in Portland, OR. Birdsmouth is a residential Design-Build firm focused on addressing climate change through the built environment through zero energy new homes and deep energy retrofits.

Joshua Salinger is founder and principle of Birdsmouth Design-Build in Portland, OR. Birdsmouth is a residential Design-Build firm focused on addressing climate change through the built environment through zero energy new homes and deep energy retrofits.

CONFERENCE CLOSING

CONFERENCE CLOSING

KEYNOTE PANEL ON FRIDAY!

KEYNOTE PANEL ON FRIDAY!

10 HBApdx.org | April / May 2024 | HBA BUILDING HOME
APRIL 18 - 19, 2024 | THE FACTOR BUILDING P ORTLAND, OR | BUILDRIGHTPDX. COM Comfortable Buildings: Getting Them Right! OPENING KEYNOTE SPEAKERS
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Check the website for the full schedule of sessions! NEW LOCATION! The Factor Building Portland, Oregon Presented by April 18-19, 2024
buildrightpdx.com ORTLAND, KEYNOTE SPEAKERS
Check the website for the full schedule of sessions! NEW LOCATION! The Factor Building Portland, Oregon Presented by April 18-19, 2024

Many Hands Making Light Work

Home Building Foundation Board President Brian Schmidt brought his team from Brian Schmidt Builder, and HBF Board Vice President Brian Boggs recruited employees from Pacific Crest Custom Cabinetry to provide volunteer power for a very worthy cause. Catholic Charities Kenton Women’s Village had a long list of repairs, and this 26-person volunteer crew came together in late February to help. Schmidt says “It was super awesome to be involved.”

Volunteers arrived first thing in the morning for the five-hour “Care Day” in North Portland. Experienced carpenters got right to work to repair damaged staircases. Another team started building a covered porch for the kitchen. People who typically work in offices grabbed a shovel or rake and began spreading an enormous pile of crushed stone, restoring paths between sleeping pods. Another team scrubbed siding, which had been stained by winter rains.

The residents of the Village told us they were excited to see the work being done. Resident Liza told us the work will help keep her safe. She showed us her bruises from falling during the

recent winter storm because the ground beneath her front steps had worn away.

This Care Day for Kenton Women’s Village generated more than $5,000 worth of labor at a minimum. Service providers tell us they often don’t have room in their budgets for maintenance, and HBF Care Days allow them to spend their resources to help their clients.

Pacific Crest’s Boggs has brought volunteers to several Care Days, saying “It always amazing me to see what

the building industry can accomplish in just a few hours of giving back to the community.” The results are impressive. With just a $3,000 investment in materials, HBF estimates the retail value of the new paths, steps, and covered patio would be at least $ 8,000. Home Building Foundation’s 2023 tally shows 552 people volunteered with HBF, giving 4,608 hours of labor, and $138,040 in value. HBF’s Chris McDowell, Chrism@ hbapdx.org if you’d like to help.

HBA BUILDING HOME | April / May 2024 | HBApdx.org 11 foundation news Connect with us at BuildHopePDX.org
Pacific Crest and Brian Schmidt Builder Volunteers

The Home Building Foundation Hosts a Successful Green Construction Career Fair at NW Natural

An eager group of future workers filled NW Natural’s meeting room to learn about starting sustainable construction careers. The February Sustainable Career Fair, coordinated by Constructing Hope, Home Building Foundation, and Home Building Association of Greater Portland. Businesses focusing on sustainability were recruited from HBA’s rosters, its Home Performance Council, Earth Advantage, and others.

Nearly 80 trainees attended from four pre-apprenticeship programs for adults: Constructing Hope, Oregon Tradeswomen, P.O.I.C., and Portland Youth Builders. The trainees had some mock interviews before they came, and they approached the booths well prepared with questions. Constructing Hope trainee Caleb Dosier told us he had not been aware of that there were so many options.” It was awesome to get all this information from all of these businesses! It was really cool.”

The trainees were incentivized to work the room. Each had a passport to get stamped when they spoke with potential employers, then were entered in a raffle for prizes. HBA Members Builders FirstSource’s team talked about their environmentally friendly “Ready Frame” system. BFS’s Paul Jefferies told us “It was fantastic! It was great to talk with the trainees.” New member Akeem Griffin is a Constructing Hope graduate himself, and usually had a table full of trainees wanting his attention. TaylorSmith’s Lauren Schumacher says even though they aren’t currently hiring, they took advantage of the opportunity to build their roster of potential employees.

The Career Fair was developed by HBF and HBA as a result of the Portland Clean Energy Fund. Longtime HBF partner Constructing Hope won a more than $7 million- dollar workforce grant to help prepare their trainees and those from the other three adult programs for sustainable construction careers. The coalition, known collectively as PATP, all receive a two- day intensive in their training sessions from

Earth Advantage, then are awarded a certificate in sustainability.

HBA and HBF are partners in the grant, with the intention of bringing “green” construction careers to people most adversely affected by climate change. Over the next three years, HBA and HBF are providing educational opportunities such as this career fair, and inviting the trainees to attend HBA sustainability events such as BuildRight. These engagement events could not have better timing. A recent analysis by the Oregon Office of Economic Analysis expects 4,000 new construction jobs in the coming year, more than any other industry.

From speaking with the trainees, career fairs like this one could prove to be a catalyst. Ina Avendano Howe of Oregon Tradeswomen told us this was a great way to help trainees explore career

options. “Our students found it helpful and two are determined to go in the direction of sustainable trades.” As for Constructing Hope trainee Dosier told us he became excited about pursuing a career in solar installation.

NW Natural Gas representative Sama Shagaga exclaimed they are happy to host again. “It was a fantastic event, everyone here was thrilled with the impact.” HBA and HBF would like to thank all of the companies that participated: Builders

FirstSource, Earth Advantage EnerCity Collaborative, Greensavers Gryphon Custom Homes Habitat for Humanity

Portland, HomeRX, Latino Built, Lovett Deconstruction, Noyes Development, NW Energy Collaborative, NW Natural Gas, OSSIA, Resilient Retrofits, Swift Sure Energy, Sunbridge Solar, and TaylorSmith Sustainable Construction.

12 HBApdx.org | April / May 2024 | HBA BUILDING HOME foundation news Connect with us at BuildHopePDX.org
HBA Member Akeem Griffin Gryphon Custom Homes (left)

Volunteers from Home Building Community Lean into Homelessness Crisis

As Portland’s homelessness crisis made national headlines, local builders were looking for ways to help out. Home Building Foundation (HBF) was one organization that provided an outlet to connect builders to the shelter community by sponsoring volunteer work parties at shelter sites around Portland. This hands-on approach was a team-building opportunity for staff, but more importantly, work that provided immediate results for shelters so they could focus on more pressing issues of housing people. HBF and several local builders would utilize this strategy to help a Hillsboro non-profit, Project Homeless Connect, get a street outreach center on its feet.

For over a year, the fledgling Project Homeless Connect (PHC) was operating out of a cramped Craftsman-era bungalow. Executive Director, Kim Marshall-Gordon, who founded the organization in 2006, bought its first permanent space in 2021 after operating for years out of temporary spaces. The yellow, asbestos-clad house had a sagging roof, broken front steps, and a wild landscape.

The PHC Access Center provides outreach to as many as 100 houseless individuals per day, serving hot meals, showers, clothing, and other counseling services. As is often the case with shelters, neighboring businesses were irritated with the chaotic orbit of the shelter. PHC asked for help from HBF to renovate the aging structure.

When HBF approached local builder Robert Wood of Mountainwood Homes about taking on the project, he was hesitant after seeing the poor conditions at the site. HBF’s Project Manager Chris McDowell contacted him and pleaded the case, arguing “If it was easy, we wouldn’t need to help.” Wood agreed and a few weeks later his fifty crew members showed up on a bright September morning eager to help.

Crews used a mini-excavator to clear fifteen-foot-tall brambles in the backyard. Other staff repaired the broken front steps and added new

handrails. Another group built a sixfoot-high privacy fence with new latches and locks. A crew on the porch painted the worn façade. Unkempt bushes obscuring the front porch were removed so the windows were once again visible. In four hours, a transformation took place, mostly with hand tools and the personalized care of volunteers.

National home builder Lennar, who participates in quarterly service projects with HBF, caught wind of the project and reached out to help. They brought a sizable crew as well as professional landscape contractor Pacific Landscape Services to rip out the tired landscape and replace it with native plants and fresh mulch, giving the unsightly house some much-needed street appeal. HBF also enlisted Tivnu, a scrappy Jewish gap year program based in Portland, to build fencing, a new trash enclosure and a clothing closet for the Access Center.

A team from the local chapter of National Women in Roofing came in early summer to donate a new roof. Stephanie Baird, GM of Bliss Roofing, who organizes outreach activities for the organization, initiated the day-long work party with volunteer roof contractors from across Portland to provide the new roof valued at $25,000 to the shelter.

When PHC bought a similarly distressed building next door to provide offices for staff, volunteer crews from Toll Brothers, Fireside Home Solutions, The Oregonian, and Miller Paint came to gut the house and repaint it. Local waste hauler, Clean It Up Mark! carried away old appliances and demolition debris.

Schools also chipped in thanks to Home Building Foundation’s Education Partnership Program which provides materials so local construction students can assist with shelter projects. Glencoe High students built two custom sheds for PHC staff to store supplies. Merlo Station High School students built cedar picnic tables for the backyard.

The capstone for the project was to build a wheelchair ramp to improve accessibility to the Access Center. HBF enlisted Rick’s Custom Fencing to donate

the ramp, as well as lead a training exercise. Rick’s staff provided hands-on instruction to Constructing Hope’s preapprenticeship trainees, who learned about framing, poured concrete footings, and read construction plans. Another regular volunteer with HBF projects, TaylorSmith Sustainable Construction closed the project out by building the walkway approach to the ramp, buttoning up roof eaves, and building custom gates for the new entrance.

Using a modest $37,500 HBF project grant, mainly for supplies, permit fees, and some professional services, HBF completed $250,000 of work, primarily by organizing volunteer work parties and support from local home builders. Typically, HBF projects save between 30-70% of building costs, allowing partner non-profits to better use their resources to support the unhoused.

Volunteer organizations like HBF are true partners with shelter organizations because they help create less work for service providers by employing the skills that they know best, in this case, construction. In contrast to a reliance on government-funded projects, serviceoriented volunteering and support from private companies offer immediate impact without strings attached.

HBA BUILDING HOME | April / May 2024 | HBApdx.org 13 foundation news Connect with us at BuildHopePDX.org
Mountainwood Homes team

economic update

Quarterly Economic Review and Outlook

Economics

US Real Gross Domestic Product (GDP)

–Inflation adjusted economic output in the US continues to advance at a faster pace than what many pundits previously expected. More importantly, the FED has hinted that the economy’s faster paced growth will likely push back the onset of interest rates cuts. This has disappointed financial markets that had once eagerly anticipated early rate cuts. Real GDP in Q4 2023 rose at a robust pace of 3.2% annualized rate, while many pundits had estimated the economy eking out a mere 1 to 1.5% rate of growth. Conditions were a bit more favorable for consumers which boosted spending. Net exports were also a bit better in 2023 and producers continued to replenish inventories which had been depleted during the pandemic. These components drove a more robust GDP growth of 2.5% for all of 2023 at a time when a recession was predicted by mainstream forecasters.

Bottom line: The notion of a “softlanding” instead of a “recession” has been gaining more traction, but with inflation still elevated, the economy still runs the risk of slipping if the FED maintains a restrictive monetary policy for too long. Tracking of high-frequency economic components that make up GDP suggest that this economic inertia will carry into the start of 2024, though at a slightly subdued rate. It is expected GDP will grow at or slightly higher than 2%.

US

Inflation (Consumer Price

Index – CPI) – The month-to-month headline inflation rate edged up 0.3% in January, but after several months in a row of subdued changes. CPI on a 12-month basis has edged lower to 3.1% in January, but core CPI inflation (which subtracts food and energy costs) was still substantially higher at 3.9%. The recent uptick concerned financial markets and pundits while the FED cautioned that future shelter costs may contribute more to keeping inflation

elevated. The FED’s policy committee, the FOMC (Federal Open Market Committee) notably left the federal funds policy rate unchanged in January. The FED observed that US inflation is still too high but acknowledged that inflation has eased substantially in the past year. Also, the FOMC noted the continued strength in labor markets and the low unemployment rate, which reflected on the solid pace of economic growth.

Bottom line: With inflation still above the FED’s 2% inflation target, the FED has indicated that it will maintain a restrictive monetary stance but did remove its bias toward future interest rate hikes. Current conditions are highly fluid, but expectations are for inflation to ease to the FED’s preferred outcome by year’s end.

US Labor Markets – Employment growth was solid in the February labor report from the Bureau of Labor Statistics (BLS). Nonfarm payroll jobs rose 275,000 in February, well within line of month-to-month job growth seen last year. However, the national unemployment rate edged up 0.2 percentage points to 3.9%, mostly due to more people entering the labor force than from actual job growth slowing. The US unemployment rate is still very low and still indicative of strong labor market conditions, although the latest reading marks the highest rate for the nation since January 2022.

Bottom line: At some juncture soon, the FED and many mainstream pundits believe an extended period of much slower job growth will be necessary to facilitate a final stepdown of inflation to the FED’s preferred target. So, might this uptick in the unemployment rate signal the start of easing in labor markets needed to tame inflation and in turn allow the FED to transition to lower interest rates?

Housing and the Construction Industry – National home builders (NAHB) seem to be cautiously optimistic, according to the most recent February

Housing Market Index (HMI) which had a reading of 48, up from 34 in November ‘23. A value greater than 50 suggests a more favorable market for home sales for the next six months. Separately, the housing affordability index (HAI), per the National Association of Realtors (NAR), improved in the last two months and in the latest December reading suggests that the median household in America can just afford a median priced singlefamily home. The HAI read 101.9 in December. The HAI had been below 100 since May 2023, in which a reading below 100 means the median household will have more difficulty in qualifying for a conventional mortgage.

Bottom line: Mortgage rates will remain elevated until the FED decides to lower interest rates. Considerable angst for first time homeowner will persist in residential markets where housing demand outpaces supply. Home prices aren’t likely to diminish given these imbalances and affordability will remain challenging as long as mortgage rates stay up.

Consumer Sentiment – A degree of optimism has returned to a wider set of consumers. February’s sentiment reading slipped -2.7%, essentially moving sideways, but only after experiencing 13.7% and 13.3% increases in the months of December and January. The consecutive increases suggest that consumer views are still upbeat and are sharply improved from the early half of 2023. The survey noted consumer confidence that inflation has turned a corner and will continue to slide lower and with it the expectation that personal household finances will stabilize.

Bottom line: The latest reading suggests consumers aren’t predicting major shifts in the economy but taking a longer look, it appears that there is an upward trend in confidence that suggests a belief that inflation will continue a favorable trajectory.

14 HBApdx.org | April / May 2024 | HBA BUILDING HOME
Connect with us at at HBApdx.org
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.

member notes

Thank you and see you soon!

This isn’t goodbye. I never say that to family and to me, everyone at the HBA is family.

I will be transitioning back into Membership in April. Change can be so hard. However, going to work for an HBA member, Emerio Design, that is a member and sponsorship partner, makes it so much easier because I am not truly leaving the HBA.

I want to thank you for having me as your Director of Membership for 4 years. It has been such a pleasure to get to work with so many of you that were my friends and colleagues before I was a staff member and to meet so many new people and grow so many new relationships.

I thank all of the staff at the HBA that are so dear to me and despite being repetitive, they are like family and we have gone through a very hard 4 years together that was also so full of joy, love, and laughter. I am so grateful.

As I look ahead to a new chapter I am very excited that I will be able to continue to promote the HBA and work to bring in new members! I love talking about the HBA! I believe in supporting all of you, your businesses, and careers. I love advocating for our industry and it’s needs so that we can continue to provide affordable housing and help everyone to have a home, whatever that might look like, to live and thrive in.

I am also happy to say that my new employer values the HBA and is happy to have me jump back into being on the Membership & Retention Committee as well as PWB and to also serve as a National Delegate with NAHB. Emerio Design is also a huge supporter of the HBF.

Membership and growth are so important to the strength we have as an organization to ensure that the HBA can continue it’s crucial work in advocating for all of your businesses. It is also important that you get involved to truly maximize your membership and the value that it brings with its money saving benefits but also as a way for you to grow your network and your business. We are all very busy but there are many ways to find your niche here at the HBA and get involved. We have a year full of events for you to choose from to maximize the exposure for your business through being an attendee or a sponsor. The staff at the HBA and the ambassadors from the Membership & Retention Committee are happy to help you connect at all of these events and make you feel welcome and comfortable.

I look forward to seeing you all at the many fabulous upcoming HBA and HBF events in 2024!

Local Remodeler Will Ride The 2024 Tour de France Route in Support Of Leukemia Drug Trials

HBA Member, Keith Knowles, President at EverLife Home, LLC, has been invited to join an international cycling team that will ride the 2024 Tour de France route in support of accelerated Leukemia drug trials. The ride will take place between June 22nd and July 14th, 2024, one week ahead of the Tour de France race.

The team is called “Tour 21” and has a goal of raising £1,000,000 for Cure Leukemia. This organization raises critical funds that support accelerated clinical trials for blood cancer treatment—the results of which are shared globally, especially with medical organizations in the United States to enhance treatments for patients locally.

“I’m riding to support this critical research because I have lost two friends to Leukemia. Kirk King passed when I was in elementary school in Newberg, OR, and in 2022 we lost Chet Runyon, a family friend and former co-worker in Newberg, OR. I’m riding to raise $50,000 in honor of their memory,” said Knowles.

To raise funds, Knowles will ride all 21 days of the Tour de France route, the same as the professional racers. This year’s tour starts in northern Italy, crosses the Alps twice, tackles the Pyrenees, and finishes in Nice. The Tour 21 team will ride nearly 2,200 miles and climb over 170,000 vertical feet in three weeks.

“It’s a lot of work, both fundraising and long hours of training, but the drive to help blood cancer patients in a

significant way motivates me to push myself like never before,” said Knowles.

Donations can be made by visiting JustGiving.com at https://www. justgiving.com/fundraising/keithknowles.

Two fundraising events with silent auctions are scheduled in April:

1. Trek Bicycle, Beaverton, on Thursday, April 4th, 2024 at 6 pm. Trek Bicycle is located at 12345 SW Canyon Rd, Beaverton, OR 97005. Beaverton Mayor, Lacey Beaty, will speak along with Jenny Howe about the importance of these drug trials. Mr. Knowles will also answer questions from the audience about how he is preparing for this arduous event.

2. The second event will be held Saturday, April 27th at 2 pm in Newberg at 16200 NE Lewis Rogers Ln, Newberg, OR 97132 at the big red barn.

HBA BUILDING HOME | April / May 2024 | HBApdx.org 15 Connect with us at HBApdx.org

member notes

Connect with us at HBApdx.org

Long-Time Member Lewis Audio Video has been Awarded #10 on Oregon Business 100 Best Companies to Work for in Oregon 2024 List

Here at the HBA, we value every member and we get immense joy from being able to recognize our members for their outstanding achievements outside of the association. We are so proud to announce that Lewis Audio Video has been Awarded #10 on Oregon Business 100 Best Companies to Work for in Oregon 2024 List for the small companies with 15 – 34 Oregon employees category. This list is drawn from survey results that measure employee opinion on 20 workplace practices. Employees rate their satisfaction with their company, which makes up 71% of companies’ 100 Best scores. They also rate the importance they attach to work environment, management and communication, decision-making and trust, career development and learning, and benefits and compensation.

Lewis Audio Video, a local leading provider of smart-home technology, has been honored with this award for numerous reasons, one of which is the provision of perks such as access to a company-owned RV for vacations, support for continued education including lunch and training, company-provided cellphones, as well as annual employee retreats featuring activities like the celebrated chili cookoff, picnics, thrilling go-kart racing, and festive holiday parties.

Remembering Roger Neu

It is with sadness that we announce Roger John Neu, a long-time builder, housing champion and board member of both the Home Building Association and our Home Building Foundation, peacefully passed away on January 21, 2024, at 80 years old. Roger John Neu was a beloved husband, father, grandfather, uncle, and friend who will be greatly missed by many in the HBA & HBF.

Roger put himself through the University of Oregon while working at US Bank. Upon graduation, he pursued a career as a real estate appraiser, eventually co-founding Allied Real Estate Appraisals with his good friend Ralph Younger. In the mid-80s, Roger embraced a new challenge as VP of Schnitzer Investment Corp., all while continuing his investments in real estate properties. After working for Schnitzer Investment, Roger founded NuPark Development and became a proud member of the Home Building Association of Greater Portland where he formed lifelong connections amongst the Portland building community.

Roger was an active HBA member for over twenty years. He was a passionate and conscientious builder who truly cared about housing and providing homes for families. He served on the HBA Board and was a longtime member of our Government Affairs Committee, where he served as Chair in 2008. He also was involved and provided

“We are beyond thrilled to announce that Lewis Audio Video has been awarded #10 among the best 100 companies in Oregon to work for! This incredible recognition is a testament to our amazing team and the supportive work environment we have cultivated together. At Lewis Audio Video, we believe that happy employees create a positive and successful workplace, and this award truly validates our commitment to our team’s well-being and growth. Thank you to all our dedicated employees for making Lewis Audio Video a fantastic place to work!”

Lewis Audio Visual takes great pride in its team’s dedication to providing top-notch low-voltage integration services. Their mission is to continue the legacy of their commitment to exceptional customer and employee satisfaction. Congratulations, Lewis Audio Video on a very welldeserved award!

leadership in a variety of other areas, including Board development and Membership.

He joined our Home Building Foundation Board in the late 2000’s and became Chair of the Board in 2013. He also supported many Foundation shelter projects, including serving as the HBF Builder Captain for the Boys & Girls Aid project in Beaverton in 2012. He continued to be involved with the Boys & Girls Aid Society for years after he completed the project work.

Beyond his involvement, work and accolades, Roger was a steady and calm influence wherever he was involved. He also had a fun and sharp mind. His deadpan delivery would be matched with a “twinkle in his eye” to let you know he was joking, while he also interjected warmth and care along with business acumen in any work-related conversation. And he loved talking about his family and his other interests. It was reflective of his heart, but he also knew that we all relate to each other better when we get to know each other outside of work.

An early advocate for soccer in the U.S., Roger coached numerous youth teams, instilling values of hard work and responsibility in the lives of many children. He was an avid sports fan, holding season tickets for the Portland Trail Blazers, Portland Timbers, and the Oregon Ducks. Roger also cherished the outdoors, engaging in activities such as whitewater rafting, tennis, fishing, skiing, and biking.

The family suggests donations in Roger’s honor to the Home Building Foundation of Greater Portland, Multiple Sclerosis Society of Portland/ Slingball Inc, or Tunnels2Towers.

16 HBApdx.org | April / May 2024 | HBA BUILDING HOME

HBA meetings & events

April Meetings

April 2

HOTT Tour Meeting, 12:00 pm, HBA Offices

April 3

PBUD Council Meeting, 9:00 am, Zoom

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

April 4

Membership & Retention Committee, 10:00 am, HBA Offices + Zoom

April 9

SOD Builder/Sponsor, 12:00 pm, HBA Offices – First Floor

April 10

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

April 11

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

Government Affairs, 10:00 am, HBA Offices + Zoom

April 16

HOTT Tour Meeting, 12:00 pm, HBA Offices

April 17

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

April 10

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

May Meetings

May 1

PBUD Council Meeting, 9:00 am, Zoom

May 2

Membership & Retention Committee, 10:00 am, HBA Offices + Zoom

May 8

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

Auction Committee, 1:00 pm, HBA Offices + Zoom

May 9

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

Government Affairs, 10:00 am, HBA Offices + Zoom

May 14

SOD Builder/Sponsor, 12:00 pm, HBA Offices – First Floor

May 15

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

May 16

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

May 23

Finance Committee, 10:30 am, HBA Offices + Zoom

HBA Executive, 11:45 am, HBA Offices + Zoom

May 24 – May 27

Memorial Day Holiday –HBA Offices Closed

April Events

All Member Happy Hour Presented by BASCO and Programed by the PWB Council

Thursday, April 4 5:30 pm – 7:30 pm BASCO - 15383 Bangy Rd, Lake Oswego

2024 BuildRight Conference + Expo

Thursday, April 18 +

Friday, April 19

The Factor Building, Portland, OR

Cost: $385 Members | $485 Non-Members

2024 Homes of Tomorrow Today Tour

Friday, April 19Sunday, April 21

The Greater Portland Area

Cost: $25.00 | Under 16 free!

May Events

HBA Peer-to-Peer Round Table Event hosted by the Remodeling & Custom Building (RCB) Council

Thursday, May 2 3:30 pm - 5:00 pm

Standard TV & Appliance

3600 SW Hall Blvd., Beaverton, OR 97005

Cost: $40

All Member Happy Hour presented by Standard TV & Appliance and Programmed by the RCB Council

Thursday, May 2 5:30 pm - 7:30 pm

Standard TV & Appliance

3600 SW Hall Blvd., Beaverton, OR 97005

Cost: $20

HBA BUILDING HOME | April / May 2024 | HBApdx.org 17
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 Graphic Design & Production Matias Ricco Published by Pamplin Media Group 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® HBA ACRONYM KEY
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.

13

ASSOCIATE MEMBER

Closet Factory

McIlmoil, Chris

800-838-7995

Closet Shelving/Storage Systems

Correct Equipment

Owens, Tim

503-616-8279

Plumbing Fixtures & Supplies

DN Christensen

Christensen, David 503-824-4574

Home Maintenance & Repair

Emerald Fence Decks and Construction Inc.

Mata, Jasmine

503-739-5266

Decking & Fencing

Floor & Decor

Brandon, Kimberly

404-471-1634

Floors - Hardwood

Lowe’s Companies

Peniuk, Chris 971-392-9998

Home Improvement Warehouse

Mega Home

Xu, Eddy 503-344-2050

Cabinets & Installation

Mr Sandless

Clark, Brian

503-388-4000

Floors - Hardwood Refinish, Repair & Install

Swickard Auto Group

Krause, Tommy 971-832-2414

Auto Dealerships

YBA Architects

Larke, Krista 503-480-6992

Architects

BUILDER MEMBER

Anchor Vista Construction LLC Wold, Eric

971-459-4053

Builders - Residential

Anchored Tiny Homes

Bruce, Matthew 503-567-7585

Builders - Tiny Home

Tree Line Hardscapes & Exteriors

Cervantes, Dahlia 971-388-5033

Home Exteriors

18 HBApdx.org | April / May 2024 | HBA BUILDING HOME membership Connect with us at HBApdx.org 71 Renewed Members THANK YOU FOR RENEWING YOUR MEMBERSHIP! 40-49 Years Milgard Windows - Portland Progressive Builders Northwest SAIF Corporation
Years Clean It Up Mark! Gomes Construction Company Northwest Earthmovers Pacific Crest Building Supply
YEARS Metke Remodeling & Luxury Homes Rich Bailey Construction, LLC Zion Metal Works 10-19 YEARS AKS Engineering & Forestry LLC B Wheeler Enterprises LLC BK Marek Construction Inc Carey’s Custom Woodworking, Inc. Dan Jones Inc. Eastbank Contractor Appliances ESP Supply Inc. Everett Custom Homes Gibson Construction LLC Gores Construction Inc. Greg Baurer Floor Covering High Performance Homes, Inc. His Builders, LLC ITech Painters Konell Excavation Pacific Lifestyle Homes Pahlisch Homes 5-9 YEARS Atlas Labs Inc Budget Blinds of Beaverton, Lake Oswego & Oregon City D & D Construction Cleanup DBS Group LLC DMH, Inc. Doty Pruett Wilson Energy Trust of Oregon Gotcha Covered J Thayer Company Neilson Construction PANAS LLC Pure Floors Inc Rick’s Custom Fencing & Decking Swiftsure Energy Services LLC The Charles H. Day Co. Inc. The Heating Specialist, Inc. Toll Brothers Vulcan Design & Construction, Inc. Westside Economic Alliance Williamsen & Bleid, Inc. 1-4 YEARS Ant Building Company Blessing Landscapes LLC Cosentino Surfaces - Portland Fiberon Gentle John’s Moving & Storage Green O Construction LLC Gresham Area Chamber of Commerce Gutterman’s Supply Kittelson & Associates, Inc. Lewis & Clark Bank Light Benders Marvin New Home Co. Northwest Superior Painting inc O’Neill Construction Group, Inc. Petra Heating & Air Conditioning
International Inc.
Building Systems QI Carpentry, LLC Quail Homes Suite Additions, LLC
Anderson Group, Inc. DBA Anderson Poolworks Uncommon Cabinetry Incorporated VYM LLC DBA GT Landscape Solutions
30-39
20-29
PNW
Premier
The
New
JOINING! Take advantage of these exclusive member discounts from HBA business partners, visit hbapdx.org/benefits for more info. DISCOUNT GAS For more information contact Kathy Temple at 541-408-5155 Kathy.Temple@ edstaub.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 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. CONSTRUCTION INDUSTRY CRIME PREVENTION COUNCIL For more information: www.cicpp.com Thousands of members of local and state home builders associations utilize the NAHB member savings programs to receive numerous exclusive discounts
Members THANKS FOR

your business

Navigating Oregon’s Construction Lien Processes

Legal Ease

It’s that time again! Time for the HBA’s annual BuildRight Conference + Expo, which will take place on April 18th and 19th at The Factor Building in downtown Portland, and during which I will be speaking on risk management and liens. While these two topics may seem unrelated, one of the primary risks construction contractors and materialmen face is the risk of not getting paid, and one of the primary tools they can use to ensure payment is a lien. As such, I thought a brief discussion of how to manage the risk of nonpayment would be a good primer for my forthcoming BuildRight presentations.

The best way to ensure payment is to demand payment upfront, before performing work or supplying materials. However, owners and lenders are often reluctant to pay for future work or materials not yet supplied. One solution is to request a deposit, down payment, or other form of advanced payment in an amount less than the total contract price. However, the amount may be limited, especially where there is a lender involved, as lenders typically only release payments in response to invoices for completed work. Moreover, an advanced payment may only cover the costs of the first invoice, giving rise to the risk of nonpayment as soon as the amount is exhausted.

One solution is to include a provision in the contract stating that the advanced payment will be held and not applied to the ongoing project costs until the final invoice. However, owners may be reluctant to agree to a substantial sum being held until completion. Such a provision also raises issues of whether such an amount is held in trust by the contractor or materialman for the benefit of the owner or lender, and whether there is corresponding liability should those funds be misallocated. Other issues include whether such funds should be held in a separate account, whether they can be applied to the costs of other projects, if they earn interest while held, and to whom such interest

would be paid, etc. Oregon law requires that retainage be limited to 5% of the contract price and held in a separate, interest-bearing account, with the interest paid to the contractor. So, it only seems fair that advanced payments be similarly limited to a small percentage of the total project cost, be held in a separate, interest-bearing account, and that the owner receives the benefit of the interest in the form of its application to the costs or a refund. Of course, holding an advanced payment until completion of the job essentially negates the benefits of the owner’s right to hold retainage.

In lieu of holding an advanced deposit, contractors and materialmen can reduce the risk of nonpayment by sending regular invoices and immediately halting work in the event of nonpayment. Should payment not be forthcoming, they can file a lien against the subject property, provided they meet various statutory requirements for liens. Specifically, construction contractors must be properly licensed by the Construction Contractors Board (“CCB”). Residential general contractors must also have a written contract on a residential project the total cost of which is over $2,000, and must provide certain CCB-mandated notices to the owner, including the Consumer Protection and Informational Notice to Owner, explaining the lien process. Subcontractors not directly contracted to the owner must provide a Notice of Right to Lien to the owner and all contractors must serve a Notice of Right to Lien on any other interest holders whose interests they want to obtain priority over.

The Notice of Right to Lien itself should encourage an owner to make timely payments. However, should payment still not be forthcoming, an unpaid contractor or materialman can record a lien in the chain of title for the property within 75 days after it last supplied labor or materials. The statutory requirements for liens include several written notice requirements designed to provide the owner and other interested

parties with information regarding the lien to encourage payment before a foreclosure action. Specifically, a lien claimant must notify the owner and any other interested parties of a lien within 10 days of its recording. Similarly, a lien claimant must provide 10 days’ advanced notice of any effort to foreclose the lien. I typically recommend that these notices be combined and include a demand for payment. Should payment not be received, a lien claimant must file a lawsuit within 120 days, seeking to foreclose the lien against the property, or the lien automatically expires.

Other options that reduce the risk of nonpayment, include contractual provisions assigning construction loan proceeds to the contractor, asking for a personal guaranty, employing an escrow agent to hold construction funds, and having the owner directly contract with certain subcontractors and materialmen so that the risk of nonpayment does not fall on the general contractor.

Ultimately, if the parties get to the stage of litigating a lien or undertaking other collection efforts, parties should be aware that the collection process is technically complex and fraught with pitfalls. As such, I recommend that parties seek the advice of competent counsel familiar with construction contracting, liens, and collection efforts early in the process. Moreover, if you miss my presentations at this year’s BuildRight Conference + Expo, I am always happy to do an encore presentation for you and your team.

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.

HBA BUILDING HOME | April / May 2024 | HBApdx.org 19

Regence members can access Vynca to support a serious illness diagnosis

Healthcare Corner

Approximately 90 million Americans have been diagnosed with a serious illness. These diagnoses can come with a range of questions and emotions. Patients and their families need trusted support that’s convenient in order to improve overall well-being.

Palliative care providers focus on offering relief from symptoms and stress with the goal of improving the quality of life for both the patient and their loved ones as they manage their illness. Different from hospice care, which focuses on endof-life treatment and is generally less than six months, people of any age can find themselves in need of palliative care.

Regence has partnered with Vynca, a telehealth palliative care provider that addresses physical, emotional and social impacts of a disease or diagnosis. Vynca does not replace traditional medical care; its specialists work with a patient’s established primary care provider to

offer additional care coordination and support tailored for patients with serious illnesses. Vynca can assist with mental health counseling to address anxiety and stress, provide support for access to food, housing and transportation if needed, as well as manage physician appointments and communication.

Vynca uses telehealth (phone and video) which allows for more accessibility, and they coordinate closely with each patient’s established care team. Its providers focus on empowering individuals living with chronic symptoms, in the comfort of their own home. Depending on a patient’s diagnosis, Vynca will coordinate and connect them with a range of palliative care physicians, nursing and social service providers who know their care plan. Services are available 24 hours a day.

Regence has long been committed to providing palliative care to its members. Since 2007, its corporate foundation has invested more than $65 million to advance palliative care access, awareness and quality across the country. Additionally, our regional health plans in Oregon,

Washington, Idaho and Utah introduced one of the first comprehensive palliative care programs in 2014.

Regence members can learn more and access Vynca services by visiting vyncacare. com and completing a contact form, or by calling 1-888-227-8884.

Are you ready for a Copilot? Key things to consider before enabling Microsoft’s AI assistant

DeLap Corner

In 2024, it is almost guaranteed that you have heard about “AI,” “LLMs” and “ChatGPT.” You might even be tired of hearing about them by now! Artificial Intelligence (AI) has undeniably become the hottest topic in technology, capturing headlines and sparking debates across nearly every industry. Embracing innovation is key for home builders to stay ahead of the curve, and if you are curious about trying to leverage AI in your organization, getting started has never been easier thanks to Microsoft’s introduction of Microsoft Copilot.

What makes Microsoft Copilot so exciting is that it integrates cutting-edge AI tools directly into your organization’s Microsoft 365 environment. Because Copilot can access and analyze your organization’s data, the tool offers functionality that public AI tools such as ChatGPT and Google Gemini can’t provide. If you remember “Clippy,” the cartoon paperclip assistant with eyes found in

late ‘90s versions of Microsoft Word, you could think of Copilot as a 21st-century Clippy (except Copilot is far less adorable).

Copilot is integrated into Microsoft 365 productivity applications such as Microsoft Teams, Outlook, Word, Excel, and more. This integration allows employees to leverage AI to streamline workflows, automate routine tasks, generate content, and provide intelligent insights on data all directly within the software they already use daily!

However, the idea of giving an AI bot access to all of your organization’s data probably sounds concerning. An important aspect to understand about Copilot is that Microsoft does not train the underlying LLM (Large Language Model) on your organization’s data. As users use Copilot to interact with organizational data, that data never leaves the existing boundaries of your Microsoft 365 environment. Think of Copilot being invited into your data environment rather than sending

your data out to it.

While using Copilot does not expose your data publicly, there are risks that you should consider internally. Copilot can access everything that the user using it can access. As such, before enabling Copilot, it’s crucial to review your organization’s access controls and data sensitivity labels in Microsoft 365 to ensure that sensitive information can only be accessed by the users intended to access it. If these controls are not configured properly, Copilot may inadvertently display sensitive files to an unauthorized user who previously didn’t even know they had access to sensitive information.

Embracing new technologies can greatly benefit organizations. However, no matter how flashy or powerful technologies become, core IT general control best practices remain as important as ever! If your organization would like to know more about leveraging AI tools or IT controls, Delap’s IT Assurance team would love to chat!

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business

safety solutions

Extension Cord Safety

Introduction: On construction sites, flexible extension cords that power tools and equipment are everywhere. These cords are often loose and uncovered. They can cause tripping hazards. They can be damaged easily and create electrical hazards.

Main Message:

Inspect all extension cords daily for damage and missing grounding prongs. Repair or replace damaged equipment.

Use a Ground Fault Circuit Interrupter to protect against any electrical fault, especially when working outside or in wet/damp conditions.

Keep extension cords away from foot traffic to prevent tripping and cord damage. The insulation in cords and electrical tools can become damaged. If a live wire touches exposed metal parts inside a tool, it can become energized.

DO NOT use extension cords/flexible wiring where frequent inspection would

be difficult

• where damage would be likely

• disconnect from the power supply by pulling or jerking the cord from the outlet

• for long-term electrical supply as a substitute for the fixed wiring of a structure

• rated for light-duty power cords on heavy-load applications

• where vehicles or equipment are allowed to pass over unprotected power cords. Cords should be put into electrical conduits or protected by placing them between two pieces of lumber of suitable strength

• In addition, NEVER USE

• a metal outlet box, Romex, or nonmetallic cable as an extension cord

• staples or nails to hold cords in place

• multiple cords connected together (use one long cord instead)

• multiple cords plugged into one outlet where a circuit overload could occur

HBA BUILDING HOME | April / May 2024 | HBApdx.org 21
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HomesOfTomorrowPDX.com Energy Efficient New Home Tour! Tour carefully-selected homes with cuttingedge technologies and building science features including above-code energy performance scores and sustainablebuilding certifications. Portland Metro Area OFFICIAL SHOW SAVE THE DATE! APRIL 19 - 21, 2024 tickets on sale now!

center stage

All Member Happy Hour at the Portland Spring Home & Garden Show sponsored by Mercedes Benz of Portland and Standard TV & Appliance

22 HBApdx.org | April / May 2024 | HBA BUILDING HOME
HBA CEO Dave Nielsen leading the festivities for the evening Carol Eisenlohr (Building Towards Better), Brenda Hartzog (NW Natural), and Nina Carlson (NW Natural) Darlene Van Kuren (Crandall Group) and Andie Smith (Environmental Works) Erik and Eleni Gerding (N2Publications) It was a packed house at our All Member Happy Hour at the Portland Spring Home & Garden Show! Dave Nielsen (HBA), Alicia DeCosta (Mountainwood Homes) and Yvonne Lerch (HBA)

center stage

Oregon Hospitality Party at the International Builders Show in Las Vegas sponsored by NW Natural and Standard TV & Appliance

HBA BUILDING HOME | April / May 2024 | HBApdx.org 23
Rachel Trice (HBA) and happy HBA members having a great time at the party! Every year, we look forward to our Oregon Hospitality Party at IBS. This year, we had over 300 attendees! Incoming HBA Board Officer, Brittainy Tiffany (Tiffany Home Design), and fellow HBA members atop the Margaritaville Restaurant in Las Vegas HBA members networking and enjoying the rooftop bar at Margaritaville in Las Vegas Every year, we look forward to our Oregon Hospitality Party at IBS. This year, we had over 300 attendees!

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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

24 HBApdx.org | April / May 2024 | HBA BUILDING HOME
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