Home Building Association of Greater Portland: A new brand for the HBA Meet HBA’s 2023 President Highlights from another year supporting you, the industry and housing
THE OFFICIAL MAGAZINE OF THE HOME BUILDING ASSOCIATION OF GREATER PORTLAND
One year ago, following research with internal and external stakeholders, extensive feedback from member leaders, and consideration of HBA’s audience, purpose and values, HBA’s Board of Directors approved the transition to a new name –the Home Building Association of Greater Portland.
While the name change might not seem entirely significant at first glance, it is much more reflective of the core elements and values we hold. The new name represents a journey we have been on for the last several years.
HBA has always been an organization that included the entire residential construction industry, not just builders. However, our former name, the Home Builders Association of Metro Portland, was not inclusive of the full industry. We want all of our members, and others in the industry who have not seen HBA as their professional home, to feel this is an organization that represents, works for and supports the vital role you each play in the housing industry. Hopefully this encourages and inspires more to join and support our work.
The word “builders” also did not accurately reflect our commitment to supporting not just the industry, but the wide variety of housing types that people consider “home”. Additionally, since HBA covers six Oregon counties, some of which are far outside of the metropolitan region, the word “metropolitan” was too restrictive, excluding many suburban or rural areas.
In the year following the Board decision, HBA has worked through how best to convey this messaging along with our role as a regional partner to advocate for and advance housing for all. This work has culminated in the unveiling of a new name
and brand, seen on this page and throughout the design of this publication, our website and other channels.
Our tagline, Building Better Together, is a critical component to our brand, too. HBA believes the industry can have a greater impact in our region when we work together and represent all involved in the home building process. We believe in strong collaboration with others, including with civic and non-profit partners, to advance needed housing in the region. Finally, we believe we can continue to build thriving communities and create more opportunities together.
What isn’t changing in our name is the word “home”. Home may look different to different people, from a shelter, apartment, ADU, condo, townhouse, duplex or singlefamily home. Regardless of what it looks like to each of us, a home is a place for people to find shelter, safety, and create opportunities for stability, financial security, family and community. Ultimately, HBA also believes that home ownership must be a path accessible for all. The more we show our commitment to housing, the more impact we can have to create a better environment for the development and construction of that housing.
While our fresh name allows us to continue to be known as HBA, I hope your view on our identity and ultimate aspirations continues to expand. We lead collaboration and work between a broad industry, civic leaders and a diverse workforce, with the goal of increasing housing supply and improving accessibility and attainability to great housing for all in our greater Portland community.
Since initial planning began in 2001, the vision for Villebois has played out in in the construction of not just housing, but a fully encompassed European-style village community. Costa Pacific Communities led the development of the masterplanned Wilsonville community from concept planning to its current state now 20-plus years later. Robust, diverse, and connected, the award-winning community is now inching toward the home stretch to being fully built out. The final development parcel was sold in September and will round out Villebois with mixed-use spaces at the Village Center.
As the community nears completion, HBA checked in with CEO of Costa Pacific Communities and the leading visionary of this project Rudy Kadlub. With a development spanning two decades, insights can be drawn from the success of the process that has ultimately led to “a community of friends and a fantastic place to call home” as described by Villebois’ website. Through collaboration between the city, developer, and larger community, Villebois has brought a unique urban form to a suburban town, helping Wilsonville meet its housing needs.
Named America’s Master-Planned Community of the Year by the National Association of Home Builders in 2009, Villebois was created under the concept of new urbanism, which promotes walkability and transit use, diverse housing, and open and accessible community spaces. Leaning on experience and insights from the company’s development
of Orenco Station in Hillsboro, along with market research and community input, Costa Pacific worked with various stakeholders to create a Master Plan guided by three principles that align with new urbanism.
“The three guiding principles we followed in 2001 were Connectivity, Diversity and Sustainability in the broadest sense of each.” These guiding principles and development concepts led to an extremely walkable, transit-oriented neighborhood that emphasizes community.
“Villebois is by far the most ‘walkable’ suburban community in the region. Residents claim they are healthier because they walk more and feel safer because everyone gets to know one another,” said Rudy. There are more “eyes on the street” through designs like front porches and rear garages he explained, and more social interactions that facilitate friendships among neighbors.
More than 130 acres of open spaces and parks, trails, and paths are found throughout Villebois, with sport courts, play structures, and a community center that includes gathering spaces and a pool. Find the Wilsonville Farmers Market in Villebois throughout the summer and various community entertainment events hosted at the Piazza Villebois, where the development of the mixed-use Village Center will take place.
In total, Villebois will contain around 2,700 units of housing once complete. With apartments, townhomes, condominiums, rowhouses and single-family homes, the community’s range of housing speaks to its guiding principle of diversity.
Beyond Villebois’ developer, several home builders have helped build the community. The list includes Costa Pacific Homes, Arbor Custom Homes, Legend Homes, Taylor Morrison, Trammel Crow Residential, JT Roth Construction, David Weekly Homes, and Lennar.
According to Rudy, demand for the varying housing types has remained consistent through the build-out, thanks to careful planning efforts. “Fortunately, we were quite diligent with our market research in the early stages in determining housing types and the demand for each,” Rudy explained. “As a result, we have sold all products at about the same rate of absorption.”
Now, all that remains for the community is the buildout of the Villebois Village Center, a mixed-use project of approximately 145 apartments above retail spaces. This development parcel was sold in September and should begin construction in the spring of 2023. “Fully 21 years after we started development.”
As the last portion of the community to come to fruition, development of the Village Center had to wait until market conditions were appropriate.
“Mixed-use development is costlier to build than simple multi-family, and in the suburbs, the rent numbers for mixeduse residential is lower than in urban areas,” Rudy explained. “We had to wait until demand for that product increased enough to justify the cost.”
The following background appeared in the February 2020 Home Building News article Villebois: An inside look at an award-winning community. To read the article and learn more about the history of the community, read the original article on HBA’s website at www.hbapdx.org/member-magazine.
A large part of the 500+ acres on which Villebois stands today was the site of the former Dammasch State Hospital which was mothballed by the State of Oregon in the mid 1990s. The state subsequently wanted to repurpose the 270,000 square-foot building and land into a women’s prison. However, the City of Wilsonville had a much different vision for the property. It sought to convert the property into a mixed-use urban village to help meet the city’s growing population and satisfy the jobs-housing imbalance.
“It sounded good – until you realized the City of Wilsonville didn’t have enough water to service such an endeavor,” said Rudy.
As such, the city had to impose a building moratorium due to the lack of water. It then subsequently commissioned a study in 1997 by Leland Consulting to determine the feasibility of such a development. The DATELUP study –the Dammasch Area Transportation Efficient Land Use Plan – called for up to 2,700 homes to be built on the property.
Around the same time, the landowner of the property (State of Oregon) and the entitlement entity (City of Wilsonville) worked together to create a solution. The city rezoned a property in the north end of Wilsonville which was surrounded by industrial property to accommodate the state’s need for the women’s prison. In turn, the State of Oregon provided $10 million to the City of Wilsonville to build a state-of-the-art water treatment facility on the south end of the city adjacent to the Willamette River – thereby allowing Wilsonville to lift the moratorium and proceed with DATELUP.
Once the deal was struck, the State of Oregon and the City of Wilsonville set out on a nationwide search to select a developer to create a Master Plan that met the DATELUP vision. A joint RFP process drew a response from six companies, including Costa Pacific, which was still completing Orenco Station.
“Even though our company was by far the smallest of the submitters, we won over the selection committee with our vision for what the community could be,” said Rudy. The rolling green country reminded Rudy of the European country side, “perhaps in the Rhone Valley or an Italian hill town,” he said. “Hence the name and design aesthetic of Villebois – ‘Village in the Woods’ in French.”
Similar to the build-out of other master planned communities in the region like McMinnville’s Baker Creek or South Hillsboro, Villebois highlights the importance of developers, local jurisdictions, and surrounding community stakeholders working together to thoughtfully and successfully bring new housing to market. In the case of Villebois, new urbanism concepts and meaningful guiding principles have helped create a strong community with livable density and attainable housing through a variety of choices, in a city that recognized its need for growth.
Wilsonville city staff and leaders embraced this vision for Villebois and ideas of new urbanism from the start. A special “V Zone” was created to specifically accommodate the design of the community. The city has stayed true to the zoning and architectural guidelines throughout the build-out said Rudy. In working with jurisdictions, “we used to use the term publicprivate partnerships, but they were usually more private than public,” Rudy explained. “But in the case of Wilsonville, they have been a great partner in developing one of America’s finest master planned communities.”
Thoughtful, diverse master planned communities are an important piece of the puzzle to address our region’s continued housing shortage. As jurisdictions like King City work towards developing their own plans for expansion areas to accommodate growth, they are looking to these communities as models and inspiration.
However, as HBA has explored these communities, one greater underlying factor in their creation runs consistent: land supply. “Master planned communities like Villebois and Orenco Station require larger parcels of land to provide the amenities (including parks and open space) to make them viable,” said Rudy. “Assembling land large enough to do a successful master plan inside the current Urban Growth Boundary is nigh unto impossible and will require larger parcels be brought into the boundary to attract large-scale master plan developers,” he added. An important consideration as the region examines its housing needs in the years to come.
Beyond Villebois’ developer, Costa Pacific Communities, several home builders have helped build the community. The list includes Costa Pacific Homes, Arbor Custom Homes, Legend Homes, Taylor Morrison, Trammel Crow Residential, JT Roth Construction, David Weekley Homes, and Lennar.
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.
To learn more or get a quote, visit buildingindustryinsurancetrust.com or call (425) 641-8093.
December 13
SOD Executive Committee, 11:00am, HBA Offices
SOD Builder/Sponsor Meeting, 12:00 pm, HBA –First Floor
December 15
HBA Board of Directors (1st of ’23) + Orientation, 11:30 am, HBA Offices
December 23January 1 HolidayHBA Offices
January 11
HPC Executive, 9:30 am, HBA Offices + Zoom
PBUD Council Happy Hour, 3:00 pm, Off Site
January 12
HBF Executive, 8:00 am, HBA Offices Government Affairs, 10:00 am
January 10
SOD Builder/Sponsor/Exec Meeting, 12:00 pm, HBA – First Floor
PWB Executive, 10:00 am, HBA Offices + Zoom
Membership & Retention Committee, 3:00 pm, HBA Offices + Zoom
January 26
HBA Executive, 11:30 am, HBA Offices + Zoom
Connect
Take
hbapdx.org/benefits for more info.
DISCOUNT GAS
For more information contact Kathy Temple at 541-408-5155 Kathy.Temple@ edstaub.com
INDUSTRY CRIME PREVENTION COUNCIL
For more information: www.cicpp.com
CREDIT CARD PROCESSING
For more information contact Tim Holstein at 503-975-0660 timh@ swipenow.com
For more information contact Tami Walter, 503-684-1880 or tamiw@ hbapdx.org
Qualifying HBA members can save up to 1% on SAIF.
For more information, contact the Program Manager at Capital Benefits Group at 425641-8093.
“HBA was just what we needed as small business and as a small business owner. The member benefits of cost saving, networking, and mentoring have been very valuable. I have found a great network of peers to be able to work through issues with, a great board that provides us with powerful insights into the upcoming market conditions, and we have also been fortunate enough to find good friends as well. The family atmosphere is so welcome as they want us to succeed along with them, and they are always interested in how to help.”
1915 Excavation Co. Jeremy Osterholm 503-816-4820 Jeremy@1915co.com Excavating & Grading Contractors
Bridge City Renovators LLC Cory Haussman 503-686-9598 bridgecityrenovators@gmail.com All Interior Surface Repair Ferguson HVAC
Even Better Homes Mac Even 503-348-5602 mac@evenbetterhomes.com Builders - Residential
Mike McElravy 503-867-1215 Michael.McElravy@ferguson.com HVAC Systems - Install & Repair
General Tree Service Clint Landon 503-816-1643 c.landon@generaltree.com Arborists
Paragon Tile & Stone Inc. Angela Dunson 503-684-5330 angela@paragontile.com Tile & Marble Contractors
Keller Supply Kitchen & Bath Showcases Theresa Ochiltree 503-343-4110 tochiltr@kellersupply.com Plumbing Fixtures & Supplies
Paris Group Realty, LLC Thomas Hall 971-409-5926 tomhall@parisgrouprealty.com Realtors
Rich’s for the Home Rick Campbell 503-367-8586 rick.campbell@richshome.com Fireplaces & Accessories
WTS Paradigm, LLC Jim Rogers 503-826-7342 jim.rogers@myparadigm.com Architectural Services
50-59 Years
Customline Shower Company
Finlandia Sauna Products Inc.
40-49 Years
Contract Furnishings Mart - Tigard
Dowers Waterproofing Inc.
30-39 Years
Bear Electric Inc
Medallion Industries Inc.
North West Framing Inc.
TJ Overhead Door Inc.
20-29 YEARS
Bradlee Distributors USA Inc.
COOPER Design Builders, Inc.
DR Horton Inc.
Fidelity National Title - Portland
Lifestyle Homes
OrePac Building Products
Roof Life of Oregon
10-19 YEARS
Blazer Homes, LLC
EleMar Oregon LLC
Installed Building Products Portland
L Evans Design Group, Inc.
MODSpdx / Nathan D. Young Construction, Inc.
Parker Concrete, Inc.
Pat’s Pound & Pour LLC
Ruben J. Menashe Inc.
T & I Construction LLC
Truax Builders Supply
WFJ Janitorial
Wolcott Services
5-9 YEARS
C & R Painting Inc.
Chad E Davis Const LLC
Creekstone Design + Remodel
EverLife Home LLC
HELP Group, Inc.
Integrity Air, LLC
Keith Davis Construction LLC
Lotus Plumbing Company
Richmond American Homes
Stark’s Vacuums
Stephens Homes, LLC
Sunset Outdoor Living
Taiga Exterior Wood, Inc
Ticor Title Insurance WaFd Bank
1-4
Building Towards Better LLC
Certified Indoor Environmental
Constructing Hope
D+D Concrete and Utilities, Inc.
Doty Pruett Wilson
Edelen Doors & Windows
Hinge Build Group
Huntwood Custom Cabinets
Northwest Land Use Entitlements, LLC
Pennington Design Group LLC
Porter W. Yett Company
Stanton Street Management Co. LLC
Statewide Land Surveying, Inc
TaylorSmith Sustainable Construction
Tier 1 Excavation
Western Interlock Woodmaster Northwest Inc.
Our industry lost a longtime leader, supporter and friend when George Lorance passed away in November at his home in Arizona.
George worked for Milgard Windows for most of his career and retired as General Manager of the Tualatin plant almost twenty years ago. During his career, George was very active in HBA and a huge supporter of the association and the industry. He served as President in 1998 - becoming the first Associate member to serve in this role and paving the way for numerous others to help lead HBA. He was also active at the national level, serving as a longtime National Director for HBA to NAHB. He was involved with and supported membership, the Remodelers Council, Street of Dreams, and the Home Building Foundation (HBF).
Even following his retirement in 2003, George continued to support and provide leadership to HBF. His involvement with it started a few years previously when Rudy Kadlub, HBA President in 1997, auctioned a designer vest George was wearing (and had just bought) off of him at an HBA event prior to the HBF’s first-ever auction. Rudy hoped to build excitement and energy for the new auction and support our brand-new Foundation. While George was not expecting his vest to be auctioned off, he went along with it because that’s just how George was – generous, caring, and willing to have fun for a good cause. That vest has been reauctioned at the event every year since. It’s framed and bears a name plate for each successful bidder. George’s vest has raised well over $50,000 for the HBF’s work over the last 25 years.
George later served on the Foundation Board and became
Board Chair in 2008. This was during the early stages of the HBF’s focus on shelter development through its national partner HomeAid America. George’s leadership, connections, and personality helped continue to grow and guide HBF’s work.
George lived close to the Portland area for most of his retirement, only recently relocating to Arizona. While we can talk a lot about why George was so important to our industry, most people will remember that he was a good friend and always fun to spend time with. He was generous, caring, and loyal. He was a smart businessman but didn’t take himself too seriously. He was equally as comfortable in dressing up in an always fashionable and colorful tuxedo as he was wearing his Harley leathers on a ride or a tank top and shorts on a beach in Hawaii. He loved nice art (especially paintings), wine, and international vacations, but could also appreciate and enjoy much simpler things.
George took a motorcycle trip shortly after he retired and traveled for several months around the country. The people he met and the stories he shared showed why he was so easy to connect with – he engaged with people from all walks of life and could relate to pretty much anybody in any setting.
George is survived by his daughter Tory, who he constantly spoke about and who was truly the apple of her daddy’s eye. We anticipate a celebration of life in the Portland area, likely after the Christmas and New Year’s holidays, and will share info with HBA’s members once it becomes available.
Where did you grow up?
I was born in Corvallis, Oregon and grew up in Pendleton.
How did you get into residential construction?
My dad had a construction company, so I started working with him when I was 12. During the summers and other breaks, I continued working in my dad’s business. I also worked in construction during my college years to support my family. I’ve always enjoyed being on construction sites and learning new things.
How long have you been a member of the HBA?
Mountainwood Homes has been a member for 13-14 years. Before this, I was involved in several Street of Dreams, and other tours and events.
Why do you value your HBA membership?
• Constantly learning how to better my business through
connections with peers and staff
• Friendships within the industry
• Being informed of industry trends
• Relationships that result in business opportunities
• Introduction to trade partners
• Camaraderie with competitors
• Having an organization to fight for the industry and small businesses
• Opportunity to showcase work/ products in shows and events
What advice would you give someone entering the home building industry?
Jump in and enjoy the ride. Always keep your head up and look for opportunities to learn. Above all, do what you say you’re going to do.
What do you enjoy outside of work?
I like to spend time with family, be outdoors, hunting, fishing, and digging out the blackberries on our property with an excavator.
our Housing Forecast, our annual BuildRight Conference, plus this publication and targeted emails bringing you the latest information in building science, codes, technology, products, business, and economic trends and outlooks to continually improve your practices and keep you informed.
If you are a part of the industry and are a member – thank you very much. You are supporting HBA’s work. If you know of a company in the industry that is not an HBA member, we need you to help spread the word and share the value of membership.
We’re here for you when the market is strong and when it’s soft. We’re here for you when you have more business than you can handle and when you need new sales, connections and relationships. We’re here for you when you have the time to be involved and when you don’t.
We’re here for you when you need us, when you think you don’t, and then when something happens that makes you realize you do. We’re here for you through booms, recessions and pandemics.
Through membership, your company has access to cost saving benefits, education and information programs, business development and lead generation opportunities, as well as strong advocacy and policy work at the local, State and Federal levels.
Fuel savings programs, credit card processing discounts and support, and a high-quality, affordable health plan through the Building Industry Insurance Trust could directly benefit your company’s bottom line and provide value to employees. Page 12 of this publication highlights these and other business solutions available to you as a member. And, you can always reach out to HBA’s membership team, Jodi Bailey (jodib@hbapdx.org) or Tami Walter (tamiw@hbapdx.org) to learn more.
Being a member locally makes you a member of our state and national associations, providing industry advocacy at all levels of government. See pages 14-15 to catch a glimpse of what our local advocacy efforts accomplished over the past year. Our advocacy and public policy team is active in six counties and in dozens of jurisdictions around our region. We continue to work hard to help you and the entire industry create and improve the housing our communities and region so desperately need.
HBA also acts as your home for industry connections, networking and relationship building. From member happy hours and luncheons, to special events, to dedicated councils and committees, you can find a place to create connections and find an inclusive, supportive network of peers. And our consumer shows provide an opportunity for both BtoB and BtoC business development.
Finally, HBA offers education and information resources like HBA’s Building Science Program, Behind the Walls Tours,
In 2023, HBA is looking forward to continue to grow our educational program offerings and in-person connecting opportunities, to offer even more valuable content to support your growth and businesses as we enter more uncertain economic times. We value your membership and representing your voice. We want to help your business succeed and facilitate a robust housing and construction environment for our communities. Thank you for your membership investment that allows us to be here during good times and hard times, helping HBA continue to be the voice for housing and the housing industry. And we always appreciate members who are ambassadors for HBA and help encourage others you do business with to join – including the ones on this page and many others who have provided testimonials we can use to share the word with others.
“The Home Building Association of Greater Portland is the collective voice for our industry. Without their advocacy and jurisdictional engagement, we are often left silent. If it hadn’t been for the Portland and state of Oregon’s HBA advocacy in Salem, our industry would have been shut down and not classified as an Essential Business when COVID hit, leaving tens of thousands of Oregonians without work for extended periods of time.”
– Dave Templeton, Holt Homes“Home Building Association of Greater Portland is an active and effective agent of local advocacy helping you keep working and providing much needed housing. Your dues are critical towards this effort. If you haven’t already taken advantage of HBA’s offerings, you should as the health insurance coverage savings can more than pay for your annual dues.”
– Kelly Stelk, Home Certified,Inc.
“The Home Building Association of Greater Portland has been a brand-builder for Stephens Homes, LLC. Participation in the NW Natural Street of Dreams and opportunities in leadership roles, both locally and nationally, continues to solidify our knowledge base and professionalism to our customers.”
– Sheila Zentz Stephens, Stephens Homes, LLC
JOIST ®
Get information for the Northwest Region including technical literature, products, and contact details for your local territory managers.
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.
NORTHWEST BUILDER RESOURCE CENTER
NORTHWEST BUILDER RESOURCE CENTER
MIKE BAIR - Portland Metro
MIKE BAIR - Portland Metro
Trus Joist Territory Manager bairm@trusjoist.com (503) 853-4638
IF YOU ARE:
With a continued focus on valuable, educational member content, HBA’s Home Building News magazine will be moving to a every-other-month publishing schedule in 2023. Find your bi-monthly HBN in your mailbox at the start of February, April, June, August, October and December. In the off months, connect with HBA through our advocacy, event and education e-newsletters, social media, as well as a new e-newsletter from HBA’s CEO, keeping you up to date on the happenings and pertinent member and industry news. • Building with TJI® Joists, Microllam Parallam® PSL, or TimberStrand • Framing FLOORS, ROOFS or WALLS • 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
IF YOU ARE:
Just scan the QR code
Trus Joist Territory Manager bairm@trusjoist.com (503) 853-4638 • Building with TJI® Joists, Microllam® LVL, Parallam® PSL, or TimberStrand® LSL • Framing FLOORS, ROOFS or WALLS • 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
scan the QR code
You want to do it right, and we want to help you.
I would like to personally thank all our builder and remodeler members who took advantage of our Building Science Program during its first year as a member service for the HBA. I have had the pleasure of working with some of our national builders, custom home builders and remodelers. The personal interaction and opportunity to work on specific challenges that members are experiencing, offering solutions or training opportunities, and developing relationships with members has been very valuable in building the program.
We learned that flexibility is key to this program’s success. Communication and delivery of this service needs to be done in several ways. We have developed the following programs to help builders BuildRight all year long:
• BuildRight Coffee Chats – one-on-one chats between builders and industry professionals on Thursday mornings between 9-10am.
• BuildRight Roadshow - Group training sessions held in multiple locations covering a range of building science and better building practice related topics.
• Individual on-site reviews of building systems and/or processes to help members develop and implement an individual continuous improvement plan.
• Behind the Walls Tours - opportunities to see what other builders are doing on the jobsite.
• HPC Innovative Product Presentations-introduction to the newest building products and innovative ways to think about building in the future.
• Open-source templates to help builders create and implement a Best Practice Program within their company.
• BuildRight Conference-providing an in-person conference with robust content and a connection to resources, workforce trainees, and leading professionals in energy efficient building products and practices.
Charging forward in 2023 all the best of 2022 and more……
• Website Improvements - Create a onestop user friendly resource for building science information and details.
• Member Directory - Online member directory that can be easily searched for specific member skills, recommendations, and/or achievements. i.e., specializing in Advanced Framing.
• Trade Partner Training - Advanced Framing, HVAC and Balanced Ventilation, Exterior Insulation, and Building Envelope, just to name a few.
• Builder and Remodeler Forums
Robert Benjamin with Aris Hydronics | www.arishydronics.com
Robert Benjamin gave a great presentation on a new spin on an old technology. We all know or have run across radiant heating systems in our careers, but have we ever thought about it for hot water, heating, and cooling all in one system? Robert from Aris Hydronics explained their new technology, its capabilities, and energy savings at a recent Home Performance Council meeting. One of the things I liked the most about this product was their goal to keep it as economical as installing the traditional systems in your home. Check out the website and give a big welcome to Robert when you see him.
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.
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.
Christine Williamson has spent her career in building science forensics, discovering why buildings fail, and working with owners, architects, and builders to remedy the problems. She is the founder of the Instagram account @BuildingScienceFightClub, an educational project that teaches architects about building science and construction. Christine is past chair of ASHRAE Technical Committee 1.12, Moisture Management in Buildings and is a frequent lecturer on building science at universities and professional conferences.
As HBA, like many organizations over the past couple of years, has weathered some challenges, it has given us an opportunity to look at our organization and see where we can improve and create more value for members. It’s also been a time of looking at changes in our industry and what business models might serve the industry best going forward. Challenges create opportunities, especially if we are forward-thinking and not trapped by the past – even by things that maybe worked 5-10 years ago.
HBA has been talking to a group of member leaders who have been involved with the Professional Remodelers Organization (PRO) for a while, about what HBA can offer that would really have value. We’ve learned a few things we think are key.
First, there is a lot more crossover in the market now between remodeling and custom home building. This includes general contractors, supplier and trade contractors, and the issues both face that are important for HBA to be engaged in. In fact, many of our PRO members also list custom building as one of their business lines, and many custom builders also list remodeling.
Second, the pandemic has shifted how consumers in general, and especially custom build clients, feel about events. Time will tell how long-term versus short-term some of these changes are, but we know that people are generally less comfortable with others being in their homes. That makes stand-alone events like the Tour of Remodeled Homes more difficult for remodelers to participate in at a level that makes the event successful to the remodelers, suppliers, and HBA.
Third, we are clearly hearing the need for more peer-to-peer learning and improved education and information. Given the crossover between remodeling and custom building, there are synergies and resources that can be shared and strengthened to help HBA better serve our members in these areas.
With that, HBA is excited to announce new plans for our organization to look forward and improve member service. The Professional Remodelers Organization/Council is being rebranded as the Remodeling and Custom Building Council. The leadership of this reimagined council represents the crossover between the two market segments, including John May (Creekstone Design & Remodel), Kara Murray (Hamish Murray Construction), Scott Bowles (Anlon Custom Construction), Sheila Zentz Stephens (Stephens Homes), Robert Wood (Mountainwood Homes) and
We also are working on a multi-year plan to develop stronger resources and opportunities for members. For 2023, we are planning the following:
• Emphasizing and creating more remodeling and custom homebuilding related content at the April BuildRight Conference
• Roundtables involving industry peers and outside experts in remodeling and custom building to share knowledge, provide insights, data and information
• Seminars and panels at our Spring Home & Garden Show educate consumers and show attendees about remodeling and custom building, including design, financing, and what to expect through the building process
• Providing an opportunity for remodelers and custom builders to feature a home in a consumer tour by participating in either the NW Natural Street of Dreams or Homes of Tomorrow Today Tour
• General networking and happy hour events, branded to highlight and support each of HBA’s councils, to help facilitate connections between members
• Increased promotion of special rebate and incentives programs HBA members have access to, which provide quarterly cash back payments from many manufacturers and suppliers used by remodelers and custom builders
With this shift, all current PRO memberships will be transferred to the new Remodeling & Custom Building Council. HBA will also focus on outreach and incentives to attract new RCB Council members. Our RCB Council leadership is open to adding a couple more members. With quarterly leadership meetings, participation is not a major time commitment. If you have thoughts or ideas to share about adding value through your HBA membership and this council, or would like to attend a meeting to check it out, please contact Jodi Bailey at jodib@hbapdx.org.
BY PRESTON KORST, DIRECTOR OF PUBLIC POLICY AND GOVERNMENT AFFAIRS
Big changes are coming to the City of Portland — voter-approved Charter Reform, a Permit Improvement Taskforce, a new city commissioner, newly allowed middle housing products and a goal of generating 20,000 new affordable housing units. From a bureaucratic and political standpoint, it’s clear that the public’s desire for change is translating into movement in City Hall. Now, what many in our industry are asking is: How will these changes impact housing?
In November, voters approved a measure to overhaul Portland’s 100-year old form of government. Replacing it will be an expanded city council (comprising of 12-members) elected via ranked-choice voting from four multi-member districts. Additionally, Portland will hire a new city manager who will function as the city’s chief executive. While this change will not take effect until 2025, many believe that it will eventually increase efficiency. Although many questions remain regarding new council arrangements and experimental election methods, these concerns are diluted when considering that the city will have a strong executive officer who can unilaterally affect change and move policy forward without the intrusion of electoral calculation. As it relates to housing, an industry more regulated than just about any other, this should carry a net-positive impact.
In 2021, Commissioner Dan Ryan appointed a task force to streamline permitting at the city, including resolving inter-bureau conflicts and improving customer services. One recent product of this group has been the creation of a new Permit Metric Dashboard, which has up-todate information on permit applications and wait times (averaging 100 days for residential permits). Additionally, Mayor Ted Wheeler announced his intention to “cluster” bureaus into single-focus areas, including “Economic Development” which will soon group the Housing Bureau, Joint Office of Homeless Services, Development Services, Planning and Sustainability, and Prosper Portland. The goal is to break down silos that limit the city’s ability to
act swiftly on housing and homelessness. It’s no secret that permit delays have exacerbated Portland’s housing crisis, but with a renewed focus on efficiency, there is reason to believe that long approval timeframes will begin to drop.
The composition of City Council is set to shift again with Councilor-elect Rene Gonzalez entering City Hall in January, replacing outgoing Commissioner Jo Ann Hardesty. While it is unclear which bureaus will be assigned to him, Councilor-elect Gonzalez is expected to bring a consensusoriented and pro-business approach to council. With his focus on reducing crime and improving livability, many expect his private business experience will help the city attract new commercial and residential development, while helping to manage public safety reforms.
For over a year, HBA has worked with the city on the implementation of new middlehousing codes. Since August 2021, there have been roughly 86 newly allowed middle housing projects permitted in Portland, totaling 367 housing units. Though this is a good start, industry experts expect this number to increase as builders become more familiar with developing these sites, and as city officials better understand how to support and approve these projects.
Over the next few years, this newly allowed housing type could help open the market for
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smaller-scale builders while expanding the supply of new housing options for middleincome buyers.
Mayor’s 20,000-unit Affordable Housing “Moonshot”
In addition to the institutional shifts occurring at the city, Mayor Ted Wheeler’s big policy push to end unsanctioned camping and catalyze 20,000 new affordable housing units is getting a lot of attention. While still in the infancy of its political development, city council passed a suite of resolutions aimed at addressing the city’s homeless crisis. Without providing details on how to fund the number of subsidized housing units, which some estimates suggest could cost over $9 billion, the city outlined a goal of building a land bank of at least 400 publicly-owned sites for future affordable development. Whatever the outcome, it is encouraging that the city prioritizes its humanitarian response with an eye toward new housing supply.
It is unclear, however, whether any one of these changes will turn the tide for housing in a city that has been mired in a state of chaos and stagnation for over a decade. Regardless, there has not been as much opportunity, acknowledgement, or focus on Portland’s housing and homelessness issues since Mayor Charlie Hales sanctioned a housing crisis in 2015. What transpires over the next 12-months will almost certainly chart the course for the city’s long-term ability to provide adequate housing into the future.
As we wrap up another year, now is a good time to look back on what has been accomplished over 2022. Over the ups and downs of the last few years especially, it is important to recognize the positive outcomes we have achieved through the support of our members, our staff, our community and your advocates on the Government Affairs committee. These two pages, although not comprehensive, will give you an idea on what we have been working on and what you have helped make happen through your tireless effort, support and dedication to the industry we all love. Not only does this hard work support an important industry and economic driver in our community, it goes directly toward addressing the housing supply and affordability crisis our region faces.
HBA Government Affairs delivered 10 concrete policy proposals to help Washington County improve their permitting process and foster better communication with builders. Having met with county commissioners several times, talking with the county administrator, and regularly meeting with LUT leadership, we were able to work collaboratively to move the needle on the issue in just months.
In working with a coalition of partners, we’ve been successful in eliminating several proposed natural gas bans in new residential construction. In Milwaukie, several misguided council proposals were removed from consideration in 2022 due to advocacy of HBA staff and membership. Our broad energy resiliency philosophy helps guide our response to jurisdictions that consider new energy and climate codes.
Led by the Washington Economic Alliance, HBA co-hosted this forum on October 10th which involved discussions on housing, transportation, business and workforce. Over 300 attended virtually.
HBA, following the lead of our partners at OHBA were successful in mitigating a legislative push to create a mandate for higher prescriptive building codes that would have essentially created a patchwork of contrary building standards throughout the region. Now an optional program, HBA is working through the state’s Resilient Efficient Buildings Taskforce to help guide any future policy proposals to ensure we meet state housing needs and climate goals.
HBA Endorses in Over 20 Local and Regional Election Races for Pro-Housing Candidates
HBA’s Government Affairs Committee and staff met with dozens of candidates in City, County and Metro races across the region. Through the support of member contributions to our PAC, we made endorsements in over 20 races for the Fall general elections and provided over $70,000 in support.
HBA’s strong partnerships with local utilities can prove especially useful to members in expediting connections and troubleshooting delays.
HBA working with Metro to facilitate UGB exchange to bring in Tigard’s River Terrace 2.0
Metro has provided detail on the methodology and criteria being used for potentially removing land from the UGB in support of Tigard’s request for River Terrace 2.0, totaling about 350 buildable acres.
After HBA Raises Concerns, Beaverton City Council Cuts Middle Housing Expedited Land Division Fee in Half
The Beaverton City Council passed Resolution 4795 adopting updated fee
schedules including a new fee for the middle housing expedited land division process mandated under SB 458. The staff proposal included the fee at $24,000, but council decided to halve the amount to $12,000 after city staff and HBA testimony.
HBA works with City of Sandy to address Building Moratorium
Sandy’s Mayor and City Manager met with HBA’s Government Affairs Committee to discuss the need for a temporary moratorium due to sewer capacity issues, what they are doing to address it, their commitment to housing, and opportunities for some development to continue during the six-month pause.
HBA Working with Jurisdictions to Curb Impact That Steep Parks SDC Increases Would Have on Housing Affordability
Several municipalities, including the cities of Sandy, Happy Valley, and Sherwood, recalibrated policies for their Park SDC fees. Some presented the option of doubling, even tripling, the cost of Parks SDCs to over $31,333 in just 5 years. HBA engaged and testified to ensure that methodological updates were tied with proven data and capacity need.
Washington County Commission Passes Middle Housing Ordinance with HBA Supported Changes
Washington County Commissioners passed their version of middle housing enabling language with HBA supported recommendations that included allowing detached plexes, removing proposed sidewalk requirements for middle housing, and updating other design standards to make middle housing easier and more likely to be built.
After extensive discussion with City staff, the HBA is in support of the changes that were proposed and would like to commend the staff in the adoption of detached plexes.
Recently, Portland infrastructure department staff released a proposal to sunset the Accessory Dwelling Unit (ADU) System Development Charge (SDC) Waiver program. Due to loud and consistent feedback from stakeholders, including HBA’s Portland Building & Urban Dev’t (PBUD) Council and others over the past few months, the decision has been made to table the immediate sunset of the waiver program and to continue a dialogue over the next 6-12 months.
Following the lead of OHBA, our association has been monitoring rules for employee protections for heat and smoke exposure. While we support the intent behind the worker safety protections, we question how some of the standards were applied and data guiding the program’s implementation. In the meantime, OHBA has developed training programs to help support and prepare employers to comply with the new rules.
The Clackamas County Board of County Commissioners opted to pass the proposed middle housing zoning and development amendments in line with House Bill 2001. The HBA supported Clackamas County’s proposal as well as urged the staff to reconsider allowing detached plexes and a sidewalk FILO in the future.
HBA meets with Metro Chair Lynn Peterson and Other Stakeholders to Discuss I-5 Bridge Replacement
HBA staff, along with other stakeholders including business associations, conservation groups and transportation representatives recently held a series of meetings to discuss I-5 bridge replacement efforts and to discuss concerns and support for the proposed project.
The Portland City Council took testimony from the public on the Residential Infill Project 2.0 (RIP2) recommendations. Over 60 members of the community testified including HBA, HBA’s Portland Building and Urban Dev’t (PBUD) Council members and many Metro Build Small Coalition allies as well as affordable housing proponents and providers. They spoke to additional changes that can be made to allow for more flexibility in housing placement, design, and type so that more units can be built to address the housing crisis.
HBA Meets with McMinnville to Discuss Proposed Construction Excise Tax
HBA staff recently met with McMinnville Council President Remy Drabkin and planning staff to discuss a proposed construction excise tax (CET) to support affordable housing efforts.
HBA Works with North Plains to Find Common Ground with Proposed SDC Increase
North Plains recently released an updated SDC increase plan that substantially reduces the originally proposed increases in a report by FCS Group released in October 2021. Although the original proposal included a total increase of $11,557, the revised draft envisions an increase of only $5,295.
HBA Works with OHBA to Ensure House Bill 4020 Doesn’t Accidentally Target Independent Remodel and Home
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A bill, HB 4020, drafted to address perceived problems with remodeling, repair, and install services offered by national construction retail outlets, such as Home Depot and Lowe’s, has been modified to ensure independent contractors offering services directly to a homeowner would not be regulated under the proposed rules.
The Portland City Council voted unanimously to raise the HOLTE Sales Price Cap for 2022 to $430,000. The cap is updated annually and affects not only the HOLTE Program, but the SDC Waiver Program. Heading into 2023, HBA staff are working with both City Council offices and PHB to ensure that the cap meets current market trends and demands.
HBA Continues to Advocate for SDC Fee Deferrals Until Home Completion
Given the impact SDCs have on construction costs and housing affordability, one way cities can help is to defer the payment of SDCs until the home is completed. This can reduce housing costs by thousands per home due to interest carry savings and also frees up construction financing so builders can work on more homes. HBA would like to acknowledge and thank the cities of Tigard, Newberg, and Gresham for working to implement this policy.
For months HBA Government Affairs staff have been working closely with Washington County’s Land Use and Transportation Department (LUT) to address long-standing permit delays that have plagued construction projects in the county. For nearly a year, the county’s central permitting departments have been understaffed and operating under inefficient processes that resulted in delays at both the intake and file check phases of permit applications of all types. On either side, the delays reached a peak of nearly 8 weeks, adding roughly four months of delays on projects ranging from simple deck repairs to new home construction.
As a result of HBA’s direct engagement, the problem now appears to be getting better with delay times at those stages of permitting dropping by nearly two-thirds. In early August, HBA Government Affairs delivered 10 concrete policy proposals to help Washington County improve their permitting process and foster better communication with builders. Having met with county commissioners several times, talking with the county administrator, and regularly meeting with LUT leadership, we were able to work collaboratively to move the needle on the issue in just months. See HBA website for full breakdown of current permitting delays and timeframes provided by the county.
On November 1st, the City of Lake Oswego will be considering whether to eliminate, continue, or alter a demolition tax on residential buildings. In 2019, the council passed an egregious $15,000 tax on all residential demolitions to help supplement the maintenance of city parks. On an October 18th work session, the tax was discussed by council who voiced unanimous support for its continuation, though it did appear that there was room for adjustments, including eliminating the fee for manual deconstruction, construction of middle housing, or for older homes that may present health and safety concerns. We encourage members to reach out to their city councilors to request that the city at least consider incorporating some of these changes to ensure that their intended policy decisions won’t reduce energy efficiency, diminish affordability, or artificially reduce home values in the area.
We are encouraged by the City of Portland and Commissioner Carmen Rubio’s pending improvements to the Portland Clean Energy Fund. Outlined in a recent Oregonian article, the proposed changes to the program will enable greater private-public collaboration to meet our region’s (and the world’s) most challenging climate obligations. Among other things, the program will have better oversight while also allowing the program’s surplus funding to be leveraged by a broader set of climate change stakeholders, private organizations working in the energy efficiency sector, including residential construction and workforce. We applaud this dynamic approach and will continue to engage with policy makers and provide feedback on future developments.
For more information on any of the below items, please contact Director of Policy and Government Affairs Preston Korst at prestonk@hbapdx.org
The City of Happy Valley’s Planning Commission met on October 25th to discuss and vote on proposed changes to the Land Development Code. HBA has serious concerns with several items on the proposed agenda that would increase regulations for builders, while adding thousands to purchase price for new homebuyers. Some of the more harmful changes could include increased setbacks to all residential buildings and adding superfluous architectural design and fencing standards. While we can appreciate the need for local jurisdictions to update and improve their code after many new middle housing updates have been mandated, we will continue to advocate at the Planning Commission and at City Council to not move the needle backwards and fall to NIMBY positions. City Council weighed in on the Planning Commission’s vote on a formal recommendation on November 1st.
As with all sectors, supply chain problems and labor shortages have adversely impacted utility providers’ ability to meet deadlines and serve their communities. For this reason, HBA’s strong partnerships with local utilities can prove especially useful to members in expediting connections and troubleshooting delays. One recent example was a utility connection that we helped advance by a matter of weeks on behalf of a builder member doing work in Sherwood who has been an HBA member for over 15 years. If your business or projects are running into any issues with local utilities, please feel free to reach out to our team so that we can assist you.
There are two seats open on the Washington County Planning Commission. Seats from Commission Districts 2 and 4 are now accepting applications, with terms starting in January 2023. We encourage members living in either of these districts to apply for a position. Having someone from the homebuilding industry represented on the commission will be critical to ensuring that the county makes smart policy recommendations regarding land use, transportation, UGB expansions, and permitting.
Washington County Staff have confirmed that both the intake and file check delays that have persisted for nearly a year are finally at target wait times. While these delays had peaked from a high of nearly 8-weeks, they’ve since come down to what the county describes as “targettimeframes” for both processing incoming permits, and doing final checks on outgoing permits. On November 9th, staff relayed that at either end of the permit application, process timeframes are each at about 5 days each.
Moving forward, staff have signaled their intention to stabilize processing times, while also agreeing to work on longer-term improvements and pilots, including concurrent reviews, early addressing, shoring up budgets and incorporating cost indexing. Over the next several months, HBA staff and members will continue to advocate for system improvements to ensure that new customer-oriented policies result in quicker permits, better building, and greater affordability.
Mayor Ted Wheeler recently announced that the city will attempt to produce 20,000 new affordable housing units in just 10 years. As part of the Mayor’s vision to address homelessness, a key feature is the creation of an average of 2,000 units per year, which is roughly double the current rate of development of affordable housing in the city in recent years.
According to the City’s website, the current resolution titled, “Establish key actions to increase affordable housing construction”, is outlined as followed:
“Reduce the 5-year average waiting lists to get into affordable housing by catalyzing the construction of 20,000 units of housing by 2033. Key actions include identifying and land-banking up to 400 publicly owned sites that are shovel-ready for development, speeding permitting of nonprofit and private multifamily housing developments, and requesting assistance from the Oregon Governor and State Legislature to increase statewide funding and expand local options to fund affordable housing.”
This is an ambitious goal and we applaud the Mayor’s vision for generating new housing supply. Going forward, however, HBA will engage with city leaders to ensure that any new proposal takes into consideration the need for a more varied housing supply, broader interpretation of affordability thresholds, development that includes market rate housing, improved permitting processes, decreased regulation, and greater emphasis on publicprivate partnerships.
For more information on any of the below items, please contact Director of Policy and Government Affairs Preston Korst at prestonk@hbapdx.org
The City of Portland recently released a new Permit Dashboard, a key feature of its Permit Improvement Taskforce. This new, publicly available tracking system not only provides builders and the public with information on how long permitting processes are taking at the city, but it also provides a snapshot of how much development is occurring according to the level of permits being pulled year-to-date. Currently, the timeframe to process an average residential permit is tracking at over three months (and commercial permits taking over 4 months), showcasing the need for further reforms and work by the city. We will continue to engage the taskforce and provide builder recommendations to help streamline and improve permitting in the city.
Metro Council President Lynn Peterson and planning staff have provided updates to MTAC, MPAC and local jurisdictions on the UGB Exchange process, including Clackamas County, Damascus CPO, and the cities of Forest Grove and Oregon City. Metro has provided detail on the methodology and criteria being used for potentially removing land from the UGB in support of Tigard’s request for River Terrace 2.0, totaling about 350 buildable acres.
HBA Government Affairs staff continues to be present at these meetings and has met directly with Metro leadership on the project. We will continue to monitor the exchange process and provide updates on when Council plans to hear testimony and take a vote.
More than a hundred residents, shelter staff, donors and government officials gathered to celebrate the opening of the new HomePlate Drop-in Center in downtown Beaverton in November.
Local shelter provider HomePlate Youth Services teamed up with Home Building Foundation and Walsh Construction to transform an abandoned church property into a trauma-informed campus that will serve around 500 houseless youth each year.
Long seen as an urban problem, suburban and rural Oregon are now grappling with a growing youth homelessness crisis. A startling number of Washington County youth live unsheltered or are considered “houseless” meaning that they lack safe and permanent housing. According to Washington County school officials, a staggering 2,754 students in the 2019-2020 school year were considered houseless, a number that increased by 33% in the past decade. HomePlate’s Executive Director, Bridget Calfee, says most of the program participants are couch surfing,
staying with relatives or friends for short periods of time, but ultimately have tenuous housing stability that lands them back on the streets.
The greatly anticipated day facility will provide trauma-informed care for hundreds of young people looking for resources from mental health counseling to employment and housing opportunities. Over the course of the twelve month, $3 milliondollar renovation project, HBF helped HomePlate bring in more than $250,000 of in-kind donated materials and labor as well as $81,000 of cash grants. A large matching grant of $43,500 was provided by Tualatin Soil and Water Conservation District to design and build a more sustainable landscape with permeable pavers, native plants, edible plants and drip irrigation. The environmental grant also funds a three-year sustainable gardening program to help youth within the program manage the half-acre campus.
Despite the troubling increase of youth housing insecurity, volunteers stepped up big to help the project, saving HomePlate and
BY CHRIS MCDOWELL, HBF PROJECT MANAGER
Washington County hundreds of thousands of dollars in construction costs so they can focus public dollars on more important items like support services. Companies like Lennar, Windemere Realty, and Scott Edwards Architecture provided over 1,000 volunteer hours to paint siding, install plants and put furniture together. Reynolds Learning Academy, a public alternative school in East Portland, built custom raised beds and a tool shed for the drop-in center. Professional associations and contractors such as National Women in Roofing, Rick’s Custom Fencing, Budget Blinds of Lake Oswego and Pacific Landscape Services donated 100 percent of their time and materials in an effort to support HomePlate’s mission to curtail child homelessness.
Lacey Beaty, Beaverton’s Mayor and a board member of HomePlate, spoke to the large opening crowd about how her husband was homeless as a youth. She reflected that “our community will be judged by how we treat our young people and seniors… making sure they have resources to thrive.” Thanks to everyone who supported this project!
For more information on HBF shelter projects contact Project Manager Chris McDowell at chrism@ hbapdx.org or visit buildhopepdx.org
Members of the Home Building Association and Foundation had a great experience on Veterans Day, meeting trainees from four local pre-apprenticeship programs. The Portland Pre-apprenticeship Training Program Consortium (PTAP) organized a Career Fair at Allen Temple CME Church in Northeast Portland.
Fireside Home Solutions, Parr Lumber, Rick’s Custom Fencing and Ridgecrest Custom Cabinetry took resumes, and talked with trainees about job opportunities at their businesses.
This new consortium was formed through funding from the Portland Clean Energy Fund. PTAP gives HBA opportunities to provide training about sustainable building practices, and to interact with more than 400 future builders annually. The adult trainees receive a broad overview of building skills through programs with Constructing Hope, Oregon Tradeswomen, Portland Opportunities Industrialization Center, and Portland Youth Builders.
The current labor market is challenging for employers, and the competition for skilled employees is fierce. One of the best ways to attract and retain those employees is by offering them benefits beyond salary.
One such benefit that has become increasingly popular is health insurance. In fact, according to a survey by the Society for Human Resource Management (SHRM), “56% of U.S. adults with employer-sponsored health benefits said that whether or not they like their health coverage is a key factor in deciding to stay at their current job.”
Health insurance benefits are essential to any employee’s compensation package because they provide peace of mind and financial security. They protect against significant medical expenses like hospitalization and surgery, which can be financially devastating if uninsured or underinsured. Health insurance also allows workers to focus on their jobs instead of worrying about how they’ll pay for treatment if they get sick or injured at work.
Companies must keep up with trends like these, so they’re always offering competitive compensation packages that meet their workers’ needs while also helping them attract new talent into their organization through innovative offerings like health insurance benefits!
By not offering health insurance or an attractive health insurance option, you’re missing out on a large portion of your potential talent pool – and possibly losing employees to competitors who do provide this benefit.
Employee benefits can be a tricky space to navigate, so at the Building Industry Insurance Trust (BIIT), we are here to help! As a member of the Home Builders Association of Metropolitan Portland, you get access to BIIT, which means savings on your monthly premium, a selection of custom medical, dental, and vision plans, and unbeatable service from an exclusive administrative team.
For more information on the Building Industry Insurance Trust (BIIT) or to receive a free, no-obligation quote, visit us at buildingindustryinsurancetrust.com.
BY JOE SEIFERT, DELAPBonus depreciation is an accelerated depreciation deduction that is provided as a tax incentive for taxpayers and businesses to invest in qualifying property by allowing them to deduct a large portion of their asset acquisition cost in the first year. This depreciation method encourages investment in new property such as machinery & equipment, real estate, and other office
furniture or equipment.
In 2018, the Tax Cuts and Jobs Act increased the percentage of bonus depreciation from 50% to 100% for qualifying property. This has remained true through 2022. However, the deduction is set to reduce over time, dropping to 80% in 2023, 60% in 2024, 40% in 2025, 20% in 2026, and completely phased out by 2027.
The cost of the qualifying asset that is not deducted through bonus depreciation in the
year the asset is acquired, will continue to be depreciated over its useful tax life.
Without taking into consideration any changes Congress may make, business owners should consider the timing and related tax implications of their planned expenditures in the near future. If no tax law change is made before the end of the year, taxpayers may lose the ability to take bonus depreciation on 20% of their asset acquisition costs when the calendar rolls over to 2023.
The complexity and cost of construction projects, including the myriad of different players and expectations, can be a breeding ground for disputes both big and small. Ironically, sometimes the more minor disputes are the most difficult to resolve, either because the costs of the dispute resolution process, be it in court, arbitration or some other form of alternative dispute resolution (“ADR”), outweigh the potential recovery, or would take too long under the circumstances, or maybe the parties are refusing to compromise merely on principal. Whatever the reason, owners, design professionals, contractors and suppliers alike should be familiar with the various options for resolving minor disputes.
A dispute can be considered to be minor because it does not involve a high dollar figure of alleged damages, involves only a small aspect of a project, or a limited number of parties, or the outcome would not substantially impact the project or parties. Regardless of the reason, a full-blown jury trial or arbitration is often not the most efficient way of resolving such minor disputes.
All Oregon county courts have a Small Claims Department that adjudicates disputes involving certain types of claims where the alleged damages are at or less than $10,000. These “Small Claims Courts” have simpler filing and service procedures than Superior Courts, hear cases on expedited schedules without a jury, and typically do not involve attorneys. While corporate parties can petition the Small Claims Court to allow an attorney to represent it, they are also usually free to proceed without representation by counsel. Small Claims Court decisions are appealable to Superior Court. However, there are procedural pitfalls and other traps for the unwary such that consultation with counsel before any Small Claims Court proceeding is wise. Moreover, a Small Claims Court cannot award prevailing party attorney fees. As such, if you are seeking to recover attorney fees, you must litigate in Superior Court or arbitration.
However, attorney fees and costs can quickly exceed the parties’ potential recovery of damages where the amount in dispute is small. To remedy this, Oregon law allows for recovery of attorney fees for claims under $10,000, provided the prevailing party makes a written demand for the disputed amount more than 20 days before filing a complaint and recovers damages equal to or greater than the amount demanded. When making a written monetary demand to an individual, be sure to include the statutorily required Fair Debt Collections Practices Act notice so as to avoid a claim of unfair debt collections practices. You should also never harass a debtor. Rather, make a firm written demand and, if the response is unsatisfactory, proceed to court or arbitration. Of course, if the debtor pays the demand within the 20-day period, the filing of a complaint is unnecessary. Moreover, if the applicable contract prohibits the recovery of attorney fees, the prevailing party cannot recover attorney fees even where a demand has been made.
As noted above, a construction contract can limit or establish other ways of resolving disputes, including requiring the parties
to participate in an onsite meeting, seek review by an independent decision maker (often the architect) and/or hold a mediation with a neutral thirdparty mediator prior to the filing of any complaint. A contract can also require that disputes be resolved in arbitration as opposed to in court.
Although the Oregon Construction Contractors Board (“CCB”) no longer offers arbitration, it still offers mediation services, which can be an affordable option especially for minor disputes, although participation requires the filing of a complaint with the CCB. There are also a number of mediators and mediation services in the Portland area who are familiar with construction disputes.
While arbitration is often the preferred method of dispute resolution in any construction contract because it is seen as being quicker and more efficient than a court trial, it can also be more expensive than a court trial because the parties must pay the arbitrator (typically an attorney) for their time. Moreover, depending on the dollar amount in dispute and the rules of the arbitration service used, multiple arbitrators may be appointed. To avoid this, the contract can dictate that any dispute be arbitrated by a single arbitrator, but that raises the risk of a spurious decision should the arbitrator not understand or like the parties’ or their arguments. This is important, because there is typically only a limited opportunity to appeal an arbitrator’s decision.
Another option is to require that disputes be tried in Superior Court to a judge without the presence of a jury. However, judges are often unfamiliar with construction-related issues, which again raises the potential for an erroneous decision. While you typically have the right to appeal a judge’s decision, even that right can be limited by the contract. Finally, the court dockets are still backlogged with cases the trials of which were delayed because of the pandemic.
In summary, there are many different options available to resolve disputes both big and small. Parties should be sure to read any construction contract carefully before signing to ensure that their desired dispute resolution processes are available and request changes where a desired process is missing or otherwise prohibited. As always, parties who are considering entering into or making changes to a construction contract to address dispute resolution procedures and/or other issues should consult with experienced legal counsel.
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.
Save the date for these signature Home Building Association of Greater Portland events in 2023! Plus, additional educational, networking and social events will be added throughout the year. Stay up to date with upcoming events and education opportunities through our Events & Education e-newsletter, following HBA on social media, and visiting our website! To view all HBA events throughout the year, learn more and register, visit www. hbapdx.org/events
Oregon Hospitality Party at the International Builders Show
January 31, 2023 | Jimmy Buffet’s Margaritaville, Las Vegas
Portland Spring Home & Garden Show – 75th anniversary event!
February 23 – 26, 2023 | Portland Expo Center
BuildRight Conference presented by Energy Trust of Oregon
April 19, 2023 | McMenamins Kennedy School
HBA Golf Classic
Wednesday, June 14 | Langdon Farms Golf Club
NW Natural Street of Dreams®
July 29 – August 20, 2023 | Denali Summit in Sherwood
Homes of Tomorrow Today Tour presented by Portland General Electric
October 13 – 15, 2023 | Greater Portland Area
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2024 Housing Forecast presented by PARR Lumber
November 2, 2023 | Oregon Convention Center
HBA Honors: An evening of celebration and cocktails (Formerly known as Builders Ball)
November 17, 2023 | Location to be announced
For more information on HBF events, visit www.buildhopepdx.org.
Painting a Better Tomorrow
March 4, 2023
HBF Building Hope Gala & Auction
June 3, 2023 | Tumwater Vineyard
HBF Trap Shoot
September 15, 2023 | Portland Gun Club
Foundation Builders Breakfast
October 18, 2023 | HBA’s 1st Floor Conference Center
