Building Business News January 2015

January 2015

Inaugural Celebration Pictures

Page 3

HBA Award Winners

Page 5

Kansas and Missouri Legislative Agendas

Page 6

Economic Forecast Breakfast 2015

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Boulevard Brewery was a festive site as December’s Inaugural Dinner brought together HBA members and guests for an evening of celebration and awards. The event is a special night to welcome the incoming President of the Board of Directors, the new executive committee, and present the annual HBA awards which recognize the outstanding contributions of individuals who have made a lasting and significant impact on housing in Kansas City. Those awards include the Bob Bollier Award for Sales and Marketing, the Fred J. Geier Associate of the Year, the Builder Hall of Fame and Next Generation Builder. See pages 3 and 5 for more on the 2014 recipients and the remarks from the awards presentation.

A Night of Celebration and Awards

Plan to make your voice heard in Kansas and Missouri state capitols.

See page 7 for Legislative Day information.

The HBA Board of Directors, at their November meeting, voted to reduce Affiliate membership dues from $150 to $25. This allows the HBA to offer special benefits to individuals who were previ-ously classified as dependants of member companies.

Affiliate membership includes the follow-ing benefits:

• National Association of Home Builders (NAHB) membership

• Access to NAHB discounts on a variety of items (see nahb.org/ma) for Member Advantage

• Listing in the HBA’s printed membership directory and in the online directory at www.kchba.org

• Personal invitations to HBA events

• Electronic copy of the Building Business News

• Easier registration process for NAHB

events and the NAHB website member features

• Eligibility to serve on HBA committees

We are excited to offer this membership level at such a reasonable rate. In order to be included in the printed 2015 membership directory, the dues payment must be re-ceived by January 14, 2015.

Invoices were sent to dependant members listed in the HBA database and the response has been positive. This process has also allowed staff to update the records as companies have contacted us with names that should be deleted or added. We appreciate those who have taken the time to do this and encourage all members to help update their

Become an Affiliate Member for Only $25

2015 Executive Committee Members Harold Phelps, Chris Ragland, Brenner Holland, Mark Mather, Kevin Kirtley and Sara Corless at the Inaugural Celebration

member record by contacting HBA staff with changes.

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www.kchba.org | Volume 21, No. 1 | January 2015

January Calendar

For more information or to register for any event, go to www.kchba.org or call 816-942-8800

We proudlysupport thehome buildingindustry.

Past Presidents Welcome Fred Delibero

Each year those who have served as presi-dent of the Home Builders Association gather for dinner to induct the most recent past president into their circle. Nine past presidents and their spouses were able to attend this year’s celebration at Summit Grill as Fred Delibero (2013 President)

was presented with his Past President medal. The wealth of home building ex-perience represented by this group is an invaluable resource for the HBA and we appreciate their on-going participation in the Association.

Jan. 7 Labor Shortage Roundtable

Jan. 8 & 9 Residential Construction Superintendent Classes

Jan. 8 Associates Council Meeting

Jan. 14 Economic Forecast Breakfast 2015

Jan. 15 Sales & Marketing Council Meeting

Jan. 20 – 22 International Builders’ Show, Las Vegas

Jan. 28 Kansas Legislative Day

Jan. 29 & 30 Residential Construction Superintendent Classes

Bob Frost (2004 President) presents Fred Delibero with his medal

Past Presidents Buzz Dulaney (1987/88), Bob Sailors (1979), Richard Mather (1978), Bruce Rieke (2005) and George Schluter (2008)

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January 2015 | Volume 21, No. 1 | www.kchba.org

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A Night of Celebration and Awards

Boulevard Brewery provided a scenic space for the Inaugural Dinner

Dinner guests enjoyed Joe’s Kansas City Bar-B-Que

Randy and Katy Herrington, ProSource

Teresa Edinger, McCray Lumber and Kellie Warren, Property Law Firm

On November 13, 2014, a group of Kansas City, Missouri (KCMO) builders met with staff from the KCMO Planning and Development Department for an open dialogue on several building issues. Topics ranged from double inspections to clarifi-cation on the information that is required on a master plan to hiring additional plan review staff. The open dialogue provided builders with the opportunity to resolve issues big and small. For example, some builders had experienced double inspec-tions when new inspectors are in the pro-cess of being trained. KCMO staff assured the builder group that the practice would end unless the training inspector finds a blatant safety issue. KCMO staff also as-sured builders that they understand the need to hire additional plan review staff

and are in the process of moving towards this goal to meet the high demand for permits and provide clarification on com-ments to builders in a timely manner.

KCMO builders also requested clarifica-tion on when a complete set of plans are re-quired on the job site. KCMO Information Bulletin 100 includes information regard-ing which inspections require plans on site and when a complete set must be provided to an inspector. The builder group and KCMO staff agreed that getting together once or twice a year is a great way to ensure that we are working together and clearly communicating about all aspects of the construction process. For a complete summary of the meeting, please visit the current issues page at kchba.org.

KCHBA Board Approves 2015 HBA-PAC TrusteesThe KCHBA’s Political Action Committee, HBA-PAC, will kick off the year with new Trustees to carry out its work of support-ing pro-housing candidates. The KCHBA Executive Committee nominated and the Board of Directors unanimously ap-proved the following KCHBA members to serve as the 2015 HBA-PAC Trustees: Bob Frost (Chair), Tommy Angotti, Tom French, Mark Hoffman, Brenner Holland, Kevin Kirtley, Jon Lambert, Harold Phelps, Chris Ragland, George Schluter, Michael Snodgrass, Mark Mather, Richard Mather and Tom Woods.

A key reason for the KCHBA’s strength is its active political affairs program. HBA-PAC Trustees meet face-to-face with elected officials to discuss issues impor-

tant to the industry. KCHBA members are also strong supporters of BUILD-PAC, the political action committee for the National Association of Home Builders. Contributions to BUILD-PAC are shared with local candidates, allowing KCHBA members the opportunity to support can-didates at the grassroots, state and federal levels who understand the importance of housing. KCHBA members can get in-volved by attending HBA-PAC events throughout the year or by contacting Beatriz Ibarra at [email protected].

Dialogue with KCMO Planning and Development Department Leads to Improvements

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Platinum sPonsor

GolD sPonsors

silver sPonsors

Bronze sPonsors

Ferguson Enterprises, Inc.

Stewart Title

Kansas Gas Services

Missouri Gas Energy

Thanks to These HBA 2014 Sponsors

Capitol Federal BankFactory Direct ApplianceFirst Federal BankHenges InsulationK & E FlatworkKansas City StarKenny’s Tile & FlooringMcCray Lumber & MillworkNebraska Furniture Mart

Northcraft Flooring & GraniteOwen Lumber Co.Phelps EngineeringProBuildShamrock CabinetsStar Drywall & InsulationSun Lumber Co.United Heating, Cooling & PlumbingWells Fargo

BANK OF BLUE VALLEy

Building SolutionsCarpenters District CouncilCommerce BankComplete Home ConceptsContinental Title CompanyCrossFirst Bank

First American TitleHermes LandscapingKansas City TitleKitchens & Baths by BriggsLocks & PullsNorth American Savings Bank

Pacific Mutual Door & WindowPella Products of Kansas CityProSource of LenexaSecured Title of Kansas CityWestern Chandelier84 Lumber

This month’s tip is:

New OSHA Reporting RequirementsBeginning Jan. 1, 2015, ALL employers will be required to notify OSHA of work-related fatalities within eight hours, and work-related in-patient hospitalizations, amputations or losses of an eye within 24 hours.

Employers have three options for reporting these severe incidents to OSHA:• Call your nearest area office during normal business hours;• Call OSHA at 800-321-OSHA (800-321-6742); or• Report online at www.osha.gov/report_online.Previously, OSHA’s regulations required an employer to report only work-related fatalities and in-patient hospitalizations of three or more employees. Reporting single hospitalizations, amputations or loss of an eye was not required under the previous rule.

Am I required to prepare and maintain records?Employers with more than 10 employees and whose establishments are not classified as a partially exempt industry must record work-related injuries and illnesses using OSHA forms 300 (log of injuries), 300A (summary of injuries) and 301 (incident report). Employers are not responsible for reporting on subcontractors. Subcontractors are considered separate employers by OSHA and must maintain their own OSHA records.For more information about this item, please contact Robert Matuga at 800-368-5242 x8507 or via email at [email protected].

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Jenni Mann, Hunt Midwest

Bob Bollier Award for Sales and Marketing

Presented by Alan White, 2013 Award Recipient

We are very pleased to honor a member of the new wave of HBA leadership, Jenni Mann. Jenni Mann joined Hunt Midwest in 2012 as manager of residential market-ing. She is responsible for marketing Hunt Midwest’s 12 current residential commu-nities located in Kansas City’s Northland, Platte County, North Kansas City, Lee’s Summit and Raymore, Missouri.

Jenni holds a bachelor’s degree in Urban Studies from the University of Missouri Kansas City and serves the community in a number of organizations. What Jenni is most famous for at the HBA is how she helped jump-start the Sales and Marketing Council back to life. Jenni and Roy Ragland took it upon themselves to rein-vigorate this vital program with the goal to help builders sell homes more effectively. The council offers educational opportuni-ties, awards and recognition programs, and sales and marketing tools to its members.

Jon Lambert, Pacific Mutual Door and Window

Fred J Geier Associate of the Year

Presented by Misty Hanson, 2013 Award Recipient

Jon Lambert is no stranger to this podium as he was awarded the Associate of the Year in 1995. Some past winners fade into the sunset but Jon has stayed in the spotlight as one of the HBA’s most dedi-cated associate members and president of Pacific Mutual Door and Window.

You are no doubt familiar with the qual-ity of PMD products and services, but you may not realize the company’s history dates back to 1912. Jon credits PMD’s successes to his grandfather who brought a keen sense of business to the table early on by carefully watching changes, adapting to those changes and anticipating future needs in the industry. Jon says, “That’s a mindset we still have today.”

His quiet and steady support shows a level of commitment that the HBA is fortunate to enjoy and deeply appreciates. There is a comfort in benefiting from someone

2014 HBA Awards Presented at Inaugural Celebration

whose family business has withstood 100 years of changes, from wars to floods to economic lows and highs. Jon and com-pany are as strong as ever and are still here to meet the needs of lumber yards, con-tractors and ultimately, area homeowners.

Shawn Woods, Ashlar Homes

Next Generation Builder

Presented by Justin Pfeifer, 2013 Award Recipient

The Next Generation Builder Award is recognizing the achievements of one young leader who exhibits these impor-tant characteristics: a quality builder, an involved and innovative volunteer, and re-liable spokesperson for the industry. That individual is Shawn Woods.

Shawn grew up around home building with his family. His father, uncle and grandfa-ther were all involved in home building and though Shawn tried to work in an of-fice job with the Federal Reserve, he said he couldn’t do it and needed to be a home builder. Remarkably, when businesses were touch-and-go during the tough econ-omy, Shawn started Ashlar Homes and began his own legacy of building quality homes. He has a reputation of working tirelessly in the construction of his homes and, at the HBA, he steps up every time

he’s asked to help. He is particularly stel-lar with issues around codes and permits. We are thrilled he is serving on the Board of Directors where we look forward to his refreshing brand of leadership.

Chris Ragland, Homes by Chris

Builder Hall of Fame

Presented by Dan Norburg, 2013 Award Recipient

Chris brings a wealth of experience to this honor as an award winning builder and as our most recent past president. Chris and her husband Roy are the owners of Homes by Chris based in Liberty, Missouri. They began home building in 2003 and prior to that Chris worked professionally in busi-ness promotions and public relations for Sealright Packaging and in communica-tions for Aventis Pharmaceuticals. She is a graduate of the University of Missouri, Columbia with a degree in economics and earned a master’s degree in business ad-ministration from Rockhurst University.

Since becoming an HBA member in 2004, Chris has volunteered on a range of com-mittees and joined the executive commit-tee in 2012. In addition, she is involved at NAHB as a Builder 20 Trustee and Board member. Of all of Chris’ contributions to the HBA the ones most memorable to her

are the Next Generation Builder Award and the Artisan Home Tour that will take place in September 2015. If there is a theme with these it’s that they both recog-nize the best. She sees the best in the next generation and wants to recognize those qualities. She also sees the best in new home construction and wants to extend the success of the Parade of Homes into a new event that will showcase some of the best custom home builders in Kansas City.

Jon Lambert, Jenni Mann, Chris Ragland and Shawn Woods were presented with the HBA’s 2014 Awards

Online Resources for HBA Members!

register for HBa events with safe & secure online registration. Personalized calendar of events.

Get notification of your events

Update Your MembershipCall today 816-942-8800, or email

[email protected] or [email protected]

Click this logo atwww.kchba.orgto login to your account

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Top Priorites

Taxes: The HBA opposes any changes to state tax policy that adversely im-pacts economic growth and home-ownership, including but not limited to, efforts to eliminate the mortgage interest deduction, property tax deduc-tion and state historical tax credit. The HBA supports any tax credit or grant for new home buyers and the State Housing Trust Fund.

Licensing: The HBA opposes license and/or registration legislation on a statewide basis. The HBA believes li-censure is best addressed at the local level.

Building Codes: The HBA opposes any legislation creating a uniform statewide building code.

Important Priorites

Fire Sprinklers in Residential Structures: Fire sprinklers in one and two family residences and townhomes should remain a consumer option. Currently no political jurisdiction is allowed to adopt mandatory fire sprin-klers in their residential building code.

Growth Management: The HBA opposes limits on new development, including impact fees, urban growth boundaries and excise taxes.

Workers’ Compensation Insurance: The HBA supports the requirement that everyone in the residential construction industry carry workers’ compensation insurance.

Green Building: The HBA supports non-mandatory initiatives to promote the use of green building technol-ogy in residential construction. The HBA supports flexibility in guidelines and certification programs that in-clude standards, such as the ICC 700 National Green Building Standard and the Home Innovation Research Labs’ NGBS Green Certification program.

Unemployment Compensation Fund: The HBA supports the refunding of the Unemployment Compensation Trust Fund by means that are fair, reasonable and balanced.

Education Funding: While recogniz-ing the connection between economic development and quality education, the HBA supports funding based on ac-tual costs, administrative consolidation and further expansion of local funding options.

Repeal Platting and Taxation Requirements: The HBA supports repealing the provisions of KSA 19-1207 implemented with Senate Bill 193(2011). The HBA opposes paying a tax before it is levied and the bur-densome efforts associated with esti-mating, collecting and refunding the projected tax bill

Federal Regulation: The HBA urges local and state governments to join the HBA in supporting critical federal legislation, such as housing finance reform, and opposing federal regula-tion that adversely impacts the home building industry and hampers eco-nomic growth, such as the Endangered Species Act and other burdensome U.S. Environmental Protection Agency and Army Corps of Engineers regulation.

Please contact Beatriz Ibarra, Vice President of Government Affairs, at (816) 733-2237 or [email protected] with any comments or questions.

Top Priorites

Taxes: The HBA opposes any changes to state tax policy that adversely im-pacts economic growth and homeown-ership, including but not limited to, efforts to eliminate the state mortgage interest deduction, property tax deduc-tion and State Historic Tax Credit. The HBA supports any tax credit or grant for new home buyers and the State Housing Trust Fund.

Licensing: The HBA opposes state license and/or registration legislation for home builders. The HBA has also opposed mandatory statewide licensing of home inspectors. The HBA believes licensure is best addressed at the local level.

Building Codes: The HBA opposes any legislation creating a uniform statewide building or energy code.

Important Priorites

Fire Sprinklers in Residential Structures: Fire sprinklers in one and two family residences and town-homes should remain a consumer op-tion. Currently local governments are prohibited from mandating residential fire sprinklers in their building code. The HBA supports making this pro-hibition permanent by eliminating the December 31, 2024 sunset on the prohibition.

Artificial Growth Management: The HBA opposes limits on new develop ment, including impact fees, urban growth boundaries and excise taxes.

Workers Compensation Reform: The HBA supports the requirement that everyone in the construction in-dustry carry workers’ compensation insurance.

Green Building: The HBA supports non-mandatory initiatives to promote the use of green building technology in residential construction. HBA supports flexibility in guidelines and certifica-tion programs that include standards, such as the ICC 700 National Green Building Standard and the Home Innovation Research Labs’ NGBS Green Certification program.

Recording Fees: The HBA gener-ally opposes any additional fees pro-posed on recording instruments. The HBA supports redirecting any current recording fees towards housing initia-tives, such as the State Housing Trust Fund.

Education Funding: While recogniz-ing the connection between economic development and quality education, the HBA supports funding based on ac-tual costs, administrative consolidation and further expansion of local funding options.

Transportation: The HBA generally supports investments in transportation infrastructure.

Federal Regulation: The HBA urges local and state governments to join the HBA in supporting critical federal legislation, such as housing finance reform, and opposing federal regula-tion that adversely impacts the home building industry and hampers eco-nomic growth, such as the Endangered Species Act and other burdensome U.S. Environmental Protection Agency and Army Corps of Engineers regulation.

Please contact Beatriz Ibarra, Vice President of Government Affairs, at (816) 733-2237 or [email protected] with any comments or questions.

2015 Kansas Legislative Agenda

The HBA’s 2015 Kansas Legislative Agenda includes long-standing policy issues that are important to HBA members and key to a strong housing industry. The HBA’s Government Affairs Committee will continue to monitor legislation and recommend policy positions as necessary.

2015 Missouri Legislative Agenda

The HBA’s 2015 Missouri Legislative Agenda includes long-standing policy issues that are important to HBA members and key to a strong housing industry. The HBA’s Government Affairs Committee will continue to monitor legislation and recom-mend policy positions as necessary.

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The KCHBA Board of Directors unani-mously approved the 2015 Kansas and Missouri Legislative Agendas at its December meeting. The Government Affairs Committee had met in early December to review past legislative pri-orities and discuss issues that KCHBA members expect will be debated in the next legislative sessions. The Legislative Agendas will direct the KCHBA’s lob-bying efforts in the Kansas Legislature, Missouri General Assembly and at the lo-cal level, and serve as a guide for KCHBA members during our annual events, Kansas Legislative Day in Topeka and Missouri

Legislative Day in Jefferson City.

Committee Co-chairs Harold Phelps, Phelps Engineering, Inc., and Brenner Holland, Hunt Midwest Real Estate Development, Inc., and Committee mem-bers also discussed issues that HBA mem-bers face day-to-day in their businesses and the pro-active steps the KCHBA could take to help alleviate bureaucracy and find savings through changes in state and lo-cal policy. The KCHBA and its members expect a big year in government affairs as legislators continue to debate tax reform, budgets and building codes.

KCHBA Board Approves 2015 Kansas and Missouri Legislative Agendas

Make Your Voice Heard During Kansas and Missouri Legislative Days

Under the statewide organizations, the Home Builders Association of Missouri (HBAM) and Kansas Building Industry Association (KBIA), KCHBA members have an important opportunity to meet face-to-face with their elected representatives in Topeka and Jefferson City. The annual Legislative Days provide an important opportunity for members to share the KCHBA’s legislative agendas, continue to build relationships with elected officials and remind them that the KCHBA is paying attention to the actions taken at the state level. KCHBA members also learn more about legislation impacting the home building industry and network with fellow KCHBA members and HBA members from both states. These events are long-standing traditions that are key to the KCHBA’s advocacy efforts.

There is much at stake for the home building industry as Kansas and Missouri

lawmakers continue to debate taxes, the budget and transportation issues. The housing industry should also stay alert about the possibility of revisiting a state-wide energy code in Missouri and a possible elimination of the state mortgage interest deduction. It is critical that lawmakers hear the KCHBA member’s perspective on these issues as they are debated in the Kansas Legislature and Missouri General Assembly.

To register for these events or for any questions, please contact Beatriz Ibarra at [email protected] or (816) 733-2237

2015 Legislative DaysKansas Legislative Day Wednesday, January 28

Missouri Legislative Day Wednesday, February 25

2014 Missouri Legislative Day meeting

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$

January 9, 8:00 a.m. to 12:00 p.m.

HBI’s Residential Construction Superintendent (RCS) Designation is a sought-after training program designed for current and aspiring jobsite superintendents in the residential building sector. Developed by industry subject matter experts, the RCS Designation teaches the rigors of this important construction management role.

Eight courses comprise the RCS Designation:

GENERAL PROJECT MANAGEMENT January 8, 8:00 a.m. to 12:00 p.m. Topics include managing production operations through the planning, action and review (PAR) method as well as understanding estimates. This course offers an overview of the many facets and responsibilities of a superintendent.

PLANNING AND SCHEDULING January 8, 1:00 p.m. to 5:00 p.m.

Improve planning and scheduling skills to increase profits, effectiveness and on-time deliveries. Learn five fundamental scheduling methods to help manage a project successfully from start to finish.

BUDGET MANAGEMENT AND COST CONTROL Understand the importance of the superintendent’s role regarding profit- ability, and how to control the critical elements of job costs. Includes tips on identifying the costs to everyone when a job is not done right the first time.

CUSTOMER SERVICE AND HOMEOWNER RELATIONS January 9, 1:00 p.m. to 5:00 p.m.

CODES AND QUALITY CONTROL January 29, 1:00 p.m. to 5:00 p.m.

Define quality within your company by identifying five essential quality components. Learn to set

performance expectations based on this quality foundation. Outlines a superintendent’s

responsibilities regarding codes and provides tips on how to enforce code

compliance on the job site.

HIRING, TRAINING AND SUPERVISION January 30, 8:00 a.m. to 12:00 p.m. Examines the common mistakes made during the

interview process and outlines a series of steps to help ensure each trade contractor and/or employee is the right fit for the company. Explore tips and tools for setting and measuring performance expectations.

TRADE CONTRACTOR AND OFFICE RELATIONS January 30, 1:00 p.m. to 5:00 p.m.

Learn to spot promising characteristics in workers and subcontractors. Offers

tips for creating a win/win partnership with internal customers and provides

proven strategies for dealing with conflict.

Ascertain the human and business needs of customers. Learn how to meet and exceed expectations by avoiding the “seven deadly sins” of customer service.

Learn how to effectively deal with the difficult customer.

SAFETY AND SECURITY January 29, 8:00 a.m. to 12:00 p.m. Protect the job site by learning the essential components of a safety program. Examine the most common OSHA citations and how to prepare for an OSHA inspection. Review a superintendent’s responsibilities to adequately protect the job site.

LOCATION: The HBA of Greater Kansas City

600 East 103 St. Kansas City, MO 64131 816-942-8800

www.kchba.org

SPEAKER: Justin Honey, Professor

Pittsburg State University

COST: (Per class)

$150 – MEMBERS $200 – NONMEMBERS

(Cost for the entire program)

$995 – MEMBERS $1250 – NONMEMBERS

The HBA of Greater Kansas City600 East 103 St. Kansas City, MO 64131

816-942-8800 • www.kchba.org

SPEAKER: Justin Honey, Professor, Pittsburg State University

COST:

For registration or more information contact: Andrew McKeegan, [email protected], 816-733-2224 or Dawn Allen, [email protected], 816-733-2239

ABOuT THE inSTRuCTOR:Justin Honey is a Professor in the Construction Management Progaram at

Pittsburg State University. He has 20 years of experience in residential construction, with nearly 10 years as a general manager for one of the largest

builders in the nation. He is a frequent instructor at IBS.

(Per class)$150 – MEMBERS

$200 – NONMEMBERS

(Cost for the entire program)$995 – MEMBERS

$1250 – NONMEMBERS

Earn the Residential Construction Superintendent Designation

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Though the 113th Congress is destined to be the least productive legislative session in 40 years in terms of laws passed, NAHB was able to achieve considerable victories for our members.

A Dec. 11 article in The Hill detailing the top 10 lobbying victories of the year cited NAHB efforts to enact flood insurance reform, noting that “Congress rolled back changes to the nation’s flood insurance program enacted only two years ago, in a victory for the National Association of Realtors, the Independent Community Bankers of America, the National Association of Counties and the National Association of Home Builders, among others.

In 2014 alone, NAHB estimates the flood insurance law will result in:

$755 million more in new home construction because it is now easier for potential new home buyers to sell their existing home and trade up.

$361 million a year in additional remodeling activity because there is no longer added insurance expense for certain remodeling jobs.

Other Key Laws Contribute to a Builder’s Bottom LineIn addition, NAHB played an instrumental role in shepherding through Congress important legislation that helped the housing community:

Farm Bill generates $1.2 billion in additional

home building and remodeling. The Farm Bill enacted into law earlier this year is a major victory for NAHB. It includes an important provision championed by NAHB that will help members living and working in rural areas across the nation.

The legislation allows more than 900 communities to retain their status as “rural” areas where residents have access to important rural housing programs that help low- and very-low income households buy their own homes or find suitable rental housing. This enables millions of Americans to maintain access to critical rural housing programs.

NAHB economists estimate that each of these 900-plus communities will receive on average more than $1 million in economic activity this year in USDA loans and grants for new construction and remodeling – funding that would have been lost had the law not been passed. In 2014 alone, it will generate an additional $1.2 billion in housing investment.

In one of their last official acts of business before adjourning, the House and Senate approved H.R. 5771, the Tax Increase Prevention Act, which will renew scores of temporary tax provisions known as “tax extenders” that expired this year. The one-year retroactive renewal, which is through 2014 and dates back to Jan. 1, includes several provisions of interest to the housing community.

Section 45L Tax Credit for Energy Efficient

NAHB Delivers in Lackluster CongressNew Homes. Provides builders a $2,000 tax credit for exceeding energy standards by 50%. The base energy code is the 2006 International Energy Conservation Code plus supplements. Section 45L is expected to save home builders $267 million in taxes for 2014 construction activity.

Section 25C Tax Credit for Qualified Energy Efficiency Improvements. This is a credit worth up to $500 (subject to a $500 lifetime cap), with lower caps for certain products like windows, for consumers to install qualified energy efficient upgrades. Remodelers often leverage 25C tax credits when working with clients. Section 25C is expected to save home owners who remodel $832 million in taxes for 2014 improvements.

Section 163 Deduction for Private Mortgage Insurance. Allows taxpayers, subject to an income cap, to deduct premiums paid for private mortgage insurance. The deduction for PMI is expected to save home owners $919 million for tax year 2014. See the full list of housing tax extenders.

Workforce Act Funds Training for Careers in Home Building

NAHB championed this bill because it will help alleviate labor shortages in the housing industry by providing investment and resources to train workers for careers in home building and other industries. In addition, the law reauthorizes the Job Corps and Youthbuild programs as federal programs operated through the US Department of Labor.

Water Resource Development Act will Improve LeveesThe President in June signed into law the Water Resource Development Act. NAHB strongly supported this measure because it makes much-needed investments in our country’s underperforming levees, opening the door to new building opportunities. This measure provides funding to enhance long-delayed flood control projects, ultimately protecting home owners in flood-prone areas. This will enable NAHB members to build homes in areas protected by better quality flood control systems. Housing markets that stand to benefit from authorization include Sacramento, Calif.; Topeka, Kan.; Fargo, N.D.; and Cedar Rapids, Iowa.

The KCHBA will host a Labor Shortage Roundtable on Wednesday, January 7 at 2:00 p.m. at the KCHBA. This member-ship-wide event will include workforce development experts, including represen-tatives from local community colleges and workforce development agencies, to discuss the challenges and opportunities for creating the next generation of work-ers in the residential construction industry. Experts will also share information on what resources are available for businesses to meet their labor needs.

The National Association of Home Builder’s surveys and data show that shortages of labor and subcontractors have become substantially more widespread since last year. There are shortages in all aspects of the industry but shortages in

carpentry, framing and bricklayers/ma-sons are high on the list. The even greater shortages in subcontractors are concern-ing because it accounts for a large share of the work in residential construction. Overall, the effect of shortages in both labor and subcontractors has forced busi-nesses to pay higher wages/subcontractor bids, raise home prices and has led to dif-ficulty completing projects on time. Part of the shortages can be explained by the fact that many skilled residential construc-tion workers sought employment in other fields during the recession and have not come back to residential construction. KCHBA members and experts will discuss the local perspective at the Labor Shortage Roundtable on January 7. To participate, please contact Beatriz Ibarra at [email protected].

KCHBA Plans Labor Shortage Roundtable

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Economic Forecast Breakfast 2015

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Will 2015 be a good year for the housing sector? What can we expect in the labor market? Will the cost of building materials increase or decrease in 2015? Get these and other questions an-swered at the HBA’s annual Economic Forecast Breakfast on Wednesday, January 14 at 8:30 a.m. at the Overland Park Convention Center. David Crowe, Chief Economist and Senior Vice President, the National Association of Home Builders, will provide the latest economic and housing forecast from NAHB’s wealth of information. Crowe is expected to discuss projections for building material prices, the labor market, interest rates and share builder sentiment from across the country. Chris Kuehl, co-founder and President, Armada Intelligence, will pro-vide his analysis of our local and national economic prospects. Both economists have presented at the HBA in the past to rave reviews.

David Crowe and Chris KuehlRegistration and networking begins at 8:00 a.m. At 8:30 a.m., breakfast will be served and the presentations will begin. The program concludes at 10:00 a.m. Board members—please note that the January board meeting will immediately follow this event. With over 50 partici-pants already registered be sure to make your reservation before we reach capac-ity. To register for this event, please visit kchba.org or contact Andrew McKeegan at [email protected].

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The Home Builders Association will offer opportunities to showcase your business products and services through two dif-ferent venues this spring. The Johnson County Contractor Licensing Spring Education Seminar will be held March 25 through March 27 and be combined with a Trade Show at the Overland Park Convention Center. This Trade Show was very well received at the Fall Education Seminar held in October and a large crowd of building professionals will be in atten-dance this spring. This Trade Show offers vendors the opportunity to reach a targeted group of decision makers. To reserve a

booth, contact the HBA at 816-942-8800.

Open to HBA builder members only, the Builders Row Trade Show will be held in conjunction with the Home Show and KC Lawn & Garden Show. Open on Friday, March 20th, the Trade Show will give builders the opportunity to gather informa-tion on the latest products available from building trade vendors. Last year’s event drew a large number of builders who found new products and services and enjoyed the camaraderie of their peers. Booths will be open from 11 a.m. till 4 p.m. and the event will include lunch and education for

participants. Interested vendors should contact the HBA for reservations and information.

The Home Show and KC Lawn & Garden Show, open to the public, will fill Bartle Hall March 20th through March 22nd. Kansas Citians have made the Home Show a tradition for the past sixty-six years and the 67th annual show prom-ises to be especially exciting. Headlining the 2015 Home Show will be Chip and Joanna Gaines, stars of HGTV’s Fixer Upper. Chip and Joanna have been flip-ping, remodeling, and fixing up homes

together for the past 12 years in Waco, TX. This “can’t be stopped” couple also run a real estate company, construction com-pany, design firm, residential subdivision, boutique home furnishings store, and suc-cessful blog! The HBA is pleased to wel-come back local presenters, Kristin Rieke and Jennifer Allwood. These dynamic women will return to the stage with trends and techniques audience members can use right away to make their homes more beautiful. Booth space is filling up rapidly for the Home Show—don’t delay in con-tacting the HBA to place your business in front of thousands of eager consumers.

Plan Now for Spring Home and Trade Shows

The Home Show provides consumers one-stop shopping for home improvement projects Spring Contractor Licenses classes will bring a specialized audience to the Trade Show

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Member Anniversaries1948 Overhead Door Company of K.C.

1967 Moffitt Built

1972 Shamrock Cabinet

1985 Locks & Pulls

1986 Riffe Homes, Inc.

1987 Prieb Homes, Inc.

1989 Hearthside Homes of Kansas City, Inc.

1990 Sherri L. Weaver Design, L.L.C.

1991 Dahmer Construction, Inc.

1996 Morrill & Janes Bank

1997 Owen Lumber Company

2002 Teague Lumber Company

2003 31-W Insulation Company, Inc.

2004 Steve Scherer Construction Company

2006 Principal Builders, LLC Quigley Custom Homes, LLC

2007 Blackburn’s All Star Roofing, Inc. K Hill Builders Surface Center Interiors

2008 A Place Called Home Const. Co., Inc. Estes Custom Homes, LLC

2009 Performance Plus Homes Singleton Construction LLC

2010 Jo Co Mtg

2011 Carpenters District Council of Greater St. Louis Hilmann Home Building Inc K. C. Builders & Design, Inc Price Residential Group LLC ProSource of Kansas City

2012 Ashlar Homes, LLC Covenant Homes, LLC Grisamore Real Estate Group K2 Home Builders Klopfenstine Construction, Inc. LP Building Products

2013 Cable-Dahmer Chevrolet Calyn Homes LLC Cardinal Crest Homes Dan Rowe Properties Digital Lagoon, Inc. Foushee Homes, Inc. Ideal Homes KC M.D.L. Investments, Inc. McFarland Custom Builders Refined Interior Staging Solutions Wolf Creek Homes LLC Wyss Construction, LLC

2014 Armstrong-Citywide Inc Braco Sales, Inc. Building Solutions Curt Riley Custom Homes, LLC Darol Rodrock Homes Evan-Talan Homes, Inc Fountain City Custom Homes Gabriel Homes Inc. Knoll Creek Homes, LLC Midwest Block & Brick Monumental Lawn & Outdoor Mutual of Omaha Bank Re/Max Mid States Region Screen Warehouse Siegel Tax Law

BuildingBusinessNewsTHE OFFICIAL PUBLICATION

OF THE HOME BUILDERS ASSOCIATION OF GREATER

KANSAS CITYJanuary 2015 • Volume 21 • Issue 1

Copyright 2015

Published by the Home Builders Association of Greater Kansas City

600 E 103 Street, Kansas City, MO 64131 (816) 942-8800

Executive Vice President sara Corless Editor marcia Jurgens

Contributing Writer: Beatriz ibarra Graphics Karla Peterie, Creative services

2015 Executive CommitteeHome Builders Association

of Greater Kansas CityPresident mark mather

Vice President Brenner HollandSecretary/Treasurer Harold Phelps

Associate Representative Kevin KirtleyImmediate Past President Chris ragland

to subscribe to Building Business news call (816) 733-2224

to advertise in Building Business news call (816) 942-8800

For change of address requests please fax changes to (816) 942-8367

or call (816) 942-8800For more information, visit the HBA

online at www.kchba.org

13


New Members

To advertise, call your account executiveor Sharon Horgan at (816) 234-4739

TELL YOUR STORYPromote your

community or new homes to over 200,000* new home shoppers

each week that read The Kansas City

Star’s real estate sections

either in print or online. Call for details

816-234-4739* Source: Scarborough research, August 2013

IN

SRK Construction, LLCStan Klinksick2307 S. Outer RoadBlue Springs MO 64015(816) 229-4242www.srkconstruction.net

Changeit, Designs & StagingSue Shores5715 Mo Valley RdPlatte Woods, MO 64151(816) 665-1177www.changeitkc.com

Interurban Restoration & ConstructionLarry WilmesP.O. Box 213Dearborn, MO 64439(816) 596-1828

B.R. Coppinger Construction, LTDBill Coppinger18347 158th StreetWinchester, KS 66097(816) 858-9009

Foust Fleet ServiceJD Clark5600 SW 29th StTopeka, KS 66614(785) 766-6000www.foustfleetleasing.com

Homes by Patty FarrPatty Farr15335 NW 128th StPlatte City, MO 64079(816) 405-7712www.pattyfarr.com

Sprint Lumber, Inc.Scott Laderoute6024 NE US Hwy 169St. Joseph, MO 64505(816) 232-3335www.sprintlumber.com

Buckner SurplusDon Leven021 WashingtonBuckner, MO 64106(816) 650-5252

Affiliate Memberships

McFarland Custom BuildersRalph YeaterPO Box 25285Kansas City, MO 64119(816) 215-1660www.mcfarlandkc.com

Bliss Associates, LLCNick Bell1000 Walnut St, Ste 920Kansas City, MO 64106(816) 221-9100www.blissappraisal.com

Dobberstine Custom Homes, Inc.Brent Dobberstine304 Camelot DrLiberty, MO 64068-1187(816) 792-1700www.dobberstinehomes.com

Ashlar Homes, LLCJoel McIntyre309 NW 10th StBlue Springs, MO 64015(816) 228-1188www.ashlarhomeskc.com

Clay County Savings BankMario Usera1178 W KansasLiberty, MO 64068(816) 781-4500www.claycountysavings.com

Banks Blue Valley Pools & SpaRoger Banks8026 W. 151stOverland Park, KS 66223(816) 985-8579www.bankspools.com

Besel’sJeremy Greenamyre300 Santa Fe StreetLeavenworth, KS 66048(913) 682-7000www.besels.com

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HBA STAFFSara Corless Executive Vice President [email protected], 816-733-2216Beatriz Ibarra Vice President of Government Affairs [email protected], 816-733-2237 Gina Battle Director of Parade of Homes [email protected], 816-733-2219Marcia Jurgens Director of Administration [email protected], 816-733-2215Andrew McKeegan Association Services Manager [email protected], 816-733-2224Phil Yancey Membership Manager [email protected], 816-733-2245Dawn AllenExecutive Assistant/Communication and [email protected], 816-942-8800Stephanie Stollsteimer Director of Marketing and Special Projects [email protected], 816-733-2213Kelcee SchlotzhauerEvents and Administration Assistant [email protected], 816-942-8800

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Event Date/Time Venue

Gold Key and Platinum Clubs BUILD-PAC Reception

Monday, January 19 7:00 – 10:00 p.m.

To be determined

Opening Ceremonies with speaker Jon Gruden

Tuesday, January 20 8:00 a.m.

Westgate (LVH) Paradise Event Center

KCHBA Hospitality Suite Tuesday, January 20 4:00 – 6:00 p.m.

HBA suite at the Encore

Young Professionals After Hours Party (ticketed event)

Wednesday, January 21 8:30 – 10:30 p.m.

Mandalay Bay – House of Blues

NAHB Board of Directors Meeting

Thursday, January 22 8:00 a.m. – 2:00 p.m.

To be determined

Spike Concert – ZZ Top Thursday, January 22 5:00 – 7:30 p.m.

Westgate (LVH) Paradise Event Center

Reception for Tom Woods, 2015 NAHB Chairman, hosted by Kansas City HBA

Thursday, January 22 7:30 p.m. – 9:30 p.m.

Westgate (LVH) Paradise Event Center, Pavilion 4

The Kansas City Home Builders Association will celebrate at the 2015 International Builders’ Show as Tom Woods is installed as chairman of the National Association of Home Builders. A special reception will be held in Tom’s honor on Thursday, following the Spike concert. The KCHBA Hospitality Suite, sponsored by Laclede Gas, Wilson Lighting and McCray Lumber will be open on Tuesday, January 20 beginning at 4 p.m. The schedule below lists events of particular interest to Kansas City HBA members. For a complete schedule of IBS events, visit www.buildersshow.com.

For questions or more information, please contact Dawn Allen at 816-733-2239 or [email protected].

Kansas City HBA Headed to Sunny Las Vegas

With a typical November dip in permit ac-tivity, the metro area saw 306 single family permits issued during the month, accord-ing to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics re-port. The year to date single family permit total is 3,897 compared to 2013 with 3,802 for a 2 percent increase. The local increase in multi-family housing is following na-tion-wide trends with 381 permits issued during November, bringing the 2014 year to date multi-family count to 3,627.

“With 2014 nearly complete, we see that it is almost identical to 2013, which was a year of recovery.” said Executive Vice President Sara Corless, “National econo-mists are predicting that home building ac-tivity should increase significantly in 2015

and we hope that will be the case locally, as well.”

Comparing regions of the metro area, Missouri North counties have an increase of 4%, Missouri South counties have is-sued 8% more permits and Kansas coun-ties have a slight decrease of 1%, when compared with year to date permit counts as of November 2013. Of the larger cit-ies in the area, Kansas City, Missouri has the largest increase at a 21% increase, per-mits issued in Kansas City, Kansas have grown by 9% and Shawnee reports a 33% increase. Johnson County tops the list of counties in number of permits issued, al-though its share of the total has decreased from 41% to 39%.

November Housing Activity Slows for Holiday Months

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Residential Building Permit Statistics

November 2014Single M-F M-F S-F M-F M-F Total Single M-F M-F S-F M-F M-F Total

Family Units Units Total Units Sale Rent Units Family Units Units Total Units Sale Rent UnitsUnits^ Sale% Rent Units YTD YTD YTD YTD Units^ Sale% Rent Units YTD YTD YTD YTD

CASS COUNTY LEAVENWORTH COUNTY

Archie 0 0 0 0 9 0 0 9 Basehor 6 0 0 6 101 0 0 101

Belton 2 0 0 2 10 0 0 10 Lansing 3 0 0 3 18 0 0 18

Cass County 9 0 0 9 41 0 0 41 Leav. County 1 0 0 1 51 0 0 51

Cleveland 0 0 0 0 0 0 0 0 Leavenworth 2 0 0 2 9 0 0 9

Drexel 0 0 0 0 0 0 0 0 Tonganoxie 1 0 0 1 25 0 0 25

Garden City 0 0 0 0 0 0 0 0 13 0 0 13 204 0 0 204

Harrisonville 0 0 0 0 5 0 0 5

Lake Winnebago 0 0 0 0 4 0 0 4 WYANDOTTE COUNTY

Lee's Summit 1 0 0 1 25 0 0 25 Bonner Springs 0 0 0 0 11 0 0 11

Peculiar 0 0 0 0 7 0 0 7 Edwardsville 0 0 0 0 1 0 0 1

Pleasant Hill 1 0 0 1 15 0 0 15 KCK/Wyandotte Co 9 0 0 9 151 0 312 463

Raymore 4 0 0 4 89 0 0 89 9 0 0 9 163 0 312 475

Village of Loch Lloyd 0 0 0 0 13 0 0 13

17 0 0 17 218 0 0 218 MIAMI COUNTY

Louisburg 0 0 0 0 4 0 0 4

CLAY COUNTY Miami County 7 0 0 7 37 0 0 37

Clay County 0 0 0 0 21 0 0 21 Osawatomie 0 0 0 0 0 0 0 0

Excelsior Springs 0 0 0 0 2 0 0 2 Paola 0 0 0 0 1 0 0 1

Gladstone 0 0 0 0 5 0 0 5 Spring Hill 0 0 0 0 5 0 0 5

Kansas City 34 0 275 309 511 0 741 1252 7 0 0 7 47 0 0 47

Kearney 6 0 0 6 54 0 0 54

Lawson 0 0 0 0 1 0 0 1 November 2014 306 0 381 687 3897 0 3627 7524Liberty 6 0 0 6 30 0 0 30

North Kansas City 3 0 0 3 13 0 0 13

Pleasant Valley 0 0 0 0 0 0 0 0

Smithville 1 0 0 1 50 0 0 50

50 0 275 325 687 0 741 1428

JACKSON COUNTY

Blue Springs 7 0 0 7 162 0 108 270 Month/Year 2007 2008 2009 2010 2011 2012 2013 2014Buckner 0 0 0 0 0 0 0 0 January 353 221 96 137 90 188 273 283Grain Valley 10 0 0 10 67 0 0 67 February 475 262 129 145 121 182 224 219Grandview 0 0 0 0 7 0 0 7 March 824 353 131 252 180 270 335 361Greenwood 2 0 0 2 35 0 0 35 April 687 441 184 228 210 277 444 441Independence 7 0 0 7 54 0 0 54 May 677 231 189 213 230 294 337 381Jackson County 3 0 0 3 48 0 0 48 June 616 260 204 239 262 268 333 359Kansas City 33 0 15 48 84 0 584 668 July 546 311 196 180 204 288 409 358Lake Lotawana 1 0 0 1 12 0 0 12 August 515 293 207 243 205 260 354 347Lee's Summit 30 0 0 30 271 0 162 433 September 397 264 219 173 202 379 384 377Oak Grove 2 0 0 2 18 0 0 18 October 597 314 226 279 205 331 369 465Raytown 0 0 0 0 0 0 0 0 November 385 167 192 173 185 283 340 306Sugar Creek 0 0 0 0 0 0 0 0 December 313 115 182 209 207 279 288

95 0 15 110 758 0 854 1612

Annual Total 6,385 3,232 2,155 2,471 2,301 3,299 4,090 3,897PLATTE COUNTY

Edgerton 0 0 0 0 0 0 0 0

Kansas City 9 0 0 9 155 0 355 510

Parkville 0 0 0 0 54 0 0 54

Platte City 0 0 0 0 1 0 0 1

Platte County 13 0 0 13 99 0 0 99

Riverside 0 0 0 0 0 0 0 0

Weatherby Lake 2 0 0 2 10 0 0 10 S-F M-F TotalWeston 0 0 0 0 0 0 0 0 Units Units Units

24 0 0 24 319 0 355 674 2007 6072 1378 74502008 3117 1830 4947

JOHNSON COUNTY 2009 1973 692 2665De Soto 0 0 0 0 13 0 0 13 2010 2262 253 2515Edgerton 0 0 0 0 0 0 0 0 2011 2094 600 2694Fairway 0 0 0 0 1 0 0 1 2012 3020 1749 4769Gardner 11 0 0 11 71 0 0 71 2013 3802 2768 6570Johnson County 4 0 0 4 46 0 0 46 2014 3897 3627 7524Leawood 10 0 0 10 82 0 0 82

Lenexa 8 0 0 8 180 0 506 686

Merriam 1 0 0 1 4 0 0 4 ^The Single Family number is units and includes both attached and detached units.Mission Hills 0 0 0 0 4 0 0 4 %Multi-Family units are in buildings with 5 or more units and are divided by sale/rent.Olathe 35 0 0 35 485 0 216 701 # Not available at time of reportOverland Park 13 0 0 13 369 0 552 921

Prairie Village 2 0 0 2 16 0 0 16

Shawnee 6 0 0 6 189 0 0 189

Spring Hill 1 0 0 1 41 0 0 41

Westwood 0 0 91 91 0 0 91 91

91 0 91 182 1501 0 1365 2866

Permit information reflects the most recent data at time of publication. In order toensure accurate recording of residential building permit statistics, the HBA mayrevise monthly and year-to-date figures when updated data is made available.

All numbers shown in the box above are ACTUAL numbers.

Comparison of Single Family

(Cass, Clay, Jackson, Platte, Johnson, Leavenworth, Miami, Wyandotte Counties)

Building Units for Greater Kansas City

Comparison of Permits By Units Issued Year to Date*

2007-2014

RESidEnTiAl BuildinG PERMiT STATiSTiCS

nOvEMBER 2014


16

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The HBA’s Sales and Marketing Council had a great time serving lunch at the Ronald McDonald House in early December. Special thanks to those who planned, shopped, cooked, served and cleaned up: Jerry Ratway, Weber Flooring

/ Joe’s Carpet, Jared Webb, The Kansas City Star, Meredith Toliver, ReeceNichols, Jenni Mann, Hunt Midwest, Dee Grisamore, Grisamore Real Estate Services, Helen Bartlett, Refined Interior Staging Solutions, and Dawn Allen, KC

HBA. Ronald McDonald House Charities is the official charity partner of the Artisan Homes Tour. Plans are underway to pro-vide meals on a regular basis at the Ronald McDonald House with the help of HBA committees and councils.

Sales and Marketing Council Serves at the Ronald McDonald House

SMC members provided a delicious lunch for guests of the Ronald McDonald House

Enter Your Homes in the Spring ParadeWhen the weather warms up after a long and cold winter, area home buyers will be ready to tour new homes. The 53rd annual Spring Parade of Homes, April 25th through May 10th, is the perfect op-portunity to showcase new construction builders have been working on through the fall and winter. The early deadline for Parade entries is January 16th; the regular deadline is January 30th and the latest possible entry date is February 6th. Don’t miss this chance to participate in a Kansas City spring tradition as the home buying season kicks off. Entry forms can be downloaded from the HBA’s website, kchba.org. Questions may be directed to Gina Battle at [email protected] or phone 816-733-2219.

Building Business News January 2015

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Transcript of Building Business News January 2015