Housing Industry News Issue 2 Sept. 2017 by Housing First Minnesota

M I N N E S O T A

HOUSING INDUSTRY NEWS

INSIDE Gubernatorial Candidates Discuss Housing [PG. 8] Industry Provides New Home for Homeless Veteran Families [PG. 14]

NEWS AND INFORMATION FOR HOME BUILDERS AND REMODELERS BY HOUSING FIRST MINNESOTA • HOUSINGFIRSTMN.ORG

VOL. 1 ISSUE 2, SEPT. 2017

Best Summer in a Decade Home Builders Enjoy Housing Boom The sounds of hammers, saws and pneumatic tools echoed all across the state this summer. Minnesota’s home builders just wrapped up their best summer in a decade, and the entire state is benefiting. Just how good is it? Single-family starts are up 13 percent this year. Through July, there have been 8,404 new single-family home starts in Minnesota, more

homes in the first seven months than in any full year from 2009 to 2011. First-time homebuyers and a tight supply of existing homes are helping to fuel this growth. “With the introduction of our more affordable entry-level brand, we have seen a significant increase in first-time homebuyers,” said Jim Slaikeu, division president for DR Horton–Minnesota, which has

experienced an increase in overall sales compared to this time last year.

“We were busy last year and are even busier this year.” Kathy Einck, MAPLEWOOD CUSTOM HOMES, ROCHESTER

The southern Twin Cities suburb of Lakeville has seen the most

single-family new homes in the state this year, with 368 new single-family home starts through August. Lakeville added 63 homes in August alone. Greater Minnesota is feeling the housing boom as well, with new home starts up 10 percent statewide from this time last year. Of the 8,404 new single-family starts this year, 3,403 are in Greater Minnesota. The Rochester-area leads Greater Minnesota with more than 296

single-family starts this year, up 15 percent compared to 2016. “We were busy last year and are even busier this year,” said Kathy Einck, vice president and co-owner of Rochester-based Maplewood Custom Homes. Suppliers and Subcontractors Builders aren’t the only ones keeping busy. Subcontractors and CONTINUED >> PAGE 11

New Home Development in Cottage Grove, Minn.

Remodelers Concerned About Proposed Lead Paint Rules The Minnesota Department of Health unveiled its proposed rule governing lead renovation, repair and painting (RRP) requirements in July, and many remodelers worry about its impact on the remodeling industry. The state’s proposed RRP Rules governing remodeling and renovation practices in pre-1978 homes will replace

the Environmental Protection Agency’s (EPA) RRP Rule in Minnesota once adopted. “Over the past seven years, contractors learned to work with the documentation requirements and lead-safe work practices required under the EPA RRP rule,” CONTINUED >> PAGE 5

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Strong Summer for Housing, but Industry Challenges Require Action By BOB MICHELS Housing First Minnesota & The Builders Association of the Twin Cities bob@bmichels-const.com

Bob Michels, president, Housing First Minnesota , BATC and Michels Homes

What a summer! The housing industry is building new homes at a rate not seen in over a decade. The remodeling market is also strong and there are positive economic and demographic indicators which tell us that housing demand from

Millennials to Boomers should remain strong for several years. After years with little good news on the housing front, it is great to see that our industry is performing well. But in spite of the 2017 success, we know that our industry still faces strong headwinds from two major challenges: the labor shortage and the pressure from regulatory costs and requirements. In virtually every industry conversation that I’ve been a part of in 2017, worries about our labor shortage have been discussed. We know that our workforce is aging and that young people are not entering the housing industry in any numbers. In many schools, technical education, which sparked interest in many of us, is simply no longer part of the curriculum. Over the past decade,

Workers on the Job The professionals in the housing industry work hard and are proud of what they accomplish. Hear from a few housing industry workers around the state on why they love what they do. “The construction industry is a cool industry because there are so many different aspects to it. You just don’t even realize how many different people actually touch a house from the time it starts to the time it ends.” – Ross Anderson, Energy Efficiency Consultant, The Energy Network World Wide

“I love working with everyone in the construction industry. I really enjoy actually doing the tile work as well as the project management side—managing day-to-day operations and working with different people from job to job makes it fun.” - James Mahler, Job Supervisor and Project Manager, River City Tile and Stone

the housing crash compounded these underlying problems by blurring the understanding among

Our challenges require action; and the most important step is to ensure that we are communicating as broadly as possible to the depth of our industry. young people about just how many good-paying careers are available in the housing industry. Beyond labor, the base price of a home in our state is 25 percent higher than our neighboring states, primarily due to land costs and

regulatory requirements at the state and local level. Now, as Millennials begin looking to buy their first homes, affordability is key. Right now we can’t build new homes to fit their budget requirements because our base-costs are simply too high. Housing First Minnesota is addressing these issues head-on. We are able to take on the industry challenges because of the vision of industry leaders to become engaged housing advocates in our state’s political and court systems through strength in numbers. We want to share this vision and our strength with everyone in the state of Minnesota. We want to unite all housing industry members to become engaged in the movement for affordable and durable housing for our neighbors, and we want this to

be a political priority for our state. We look forward to mutual cooperation to build a strong Housing First Minnesota presence throughout our state. Our board and staff are committed, are you? If you are interested in joining the housing movement, I invite you to subscribe to Housing First Minnesota. For less than $30, you can stay up-to-date on industry news and receive discounted opportunities to engage with elected officials and network with fellow industry leaders. I hope you enjoy this edition of Housing Industry News and I look forward to having you aboard as a part of the housing movement. Visit HousingFirstMN.org for more information.

Project Build Minnesota Gaining Steam What’s the number one issue facing the housing industry? “Labor, labor, labor,” said Bob Michels, president of Housing First Minnesota. Addressing the workforce shortage is one of the biggest obstacles facing the housing industry. Thus, Project Build Minnesota was created. Project Build Minnesota is a state-wide construction workforce

enhancement campaign that promotes a positive image of construction as a life-long career choice for young men and women of all backgrounds. Working together, industry professionals, associations and organizations are focusing on providing tools and information to the next generation of aspiring builders. The movement is designed to foster career choice awareness across

all lines of the residential and commercial building industry. “As the baby boomer generation retires, we are inviting younger generations to learn more about working with their hands and building a good-paying career in the building industry,” said David Siegel, executive director of Housing First Minnesota and Project Build Minnesota board member.

The construction industry provides countless opportunities across different education levels and interests. It is rewarding work—Minnesota construction workers’ annual pay averages $61,500, and 95% of construction workers want to stay in the construction industry. James Mahler, River City Tile and Stone

Ross Anderson, The Energy Network Worldwide

“This is the best group of people I’ve ever worked with. And that really is the biggest thing. In any industry the work is the work, but the people are what make the work great.” – Justin Sarff, Installer, Cambria

“At the end of the day, you can look at something you created and know someone is going to enjoy that in their home. And you get to take pride in your work and see a lot of cool stuff since you’re installing a lot of the latest styles and trends.” - Bryan Hoppenrath, Tile Setter, River City Tile and Stone.

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HOUSING INDUSTRY NEWS

Construction Average Annual Pay

95%

Bryan Hoppenrath, River City Tile and Stone

Justin Sarff, Cambria

$61,500

Why do you love working in the housing industry? Submit your response to Info@HousingFirstMN.org

of Construction Workers want to stay in the construction industry Learn more at ProjectBuildMN.org

LEGAL ISSUES

Major Housing Case Awaits Court Decision The Minnesota Court of Appeals heard a major housing-related court case in June. Twin Cities developer Martin Harstad sued the City of Woodbury in 2015, contending the City of Woodbury’s Major Roadway Assessment (MRA) fees, which are used to pay for traffic-related improvements throughout the city, were not permitted under state law. For his 183-home Bailey Park project, Harstad was asked to pay $1.3 million in MRA fees, which would be used to pay for roundabouts, traffic signals and other

transit-related projects outside of the development. In November 2016, the district court sided with Harstad, saying the MRA fees were illegal. In his decision, Judge Richard Ilkka called the longtime practice “unlawful and unenforceable.” The lower court ruled cities cannot impose additional taxes or fees upon developers in order to pay for transit-related improvements outside of signed development agreements. Rochester-area developer Frank Kottschade, the Builders

Association of the Twin Cities and the National Association of Home Builders filed a friend-of-the-court brief, citing a similar case between the City of Eagan and Country Joe Homes in the 1990s. The court’s ruling is expected in September and was not available at the time of printing. Check Housing Industry News’ digital edition for updates: HousingFirstMN.org.

Hail damage in Blaine, Minn.

Storm Damage Keeps Contractors Busy Damage to homes from severe weather added to an already busy summer for Minnesota’s exterior and roofing contractors. No city has more storm damage in Minnesota than the northern Twin Cities suburb of Blaine, which was hit hard by hail and high winds on June 11. The storm made national news, as residents of the northern suburbs used shovels and snow blowers to clear hail from driveways and sidewalks. For a large section of Blaine, few homes escaped damage. Nearly 13,000 homes were in the path of the storm, and more than 90 percent are in need of some type of repair. “We expect around 12,000 roofs to be replaced,” said Dan Hauck,

chief building official for the City of Blaine. In addition to the new roofs, Hauck estimates nearly 4,000 homes will need to have siding or windows replaced. In the days following the storm, roofing and exterior contractors formed a massive line at city hall, with some waiting in line for hours to pull multiple permits. On its website, the city says there may be a delay in normal permit processing and scheduling of inspections due to the volume of work related to the June 11 storm. Four thousand permits were pulled in Blaine through July with only 475 closed. Hauck said the city expects work to continue well into next year. Left to right: David Siegel, Housing First Minnesota; Jim Yarosh, Siegel Brill; Rob Stefanowicz, Larkin Hoffman; Martin Harstad; Peter Coyle, Larkin Hoffman; Gary A. Van Cleave, Larkin Hoffman; Frank Kottschade, Bob Michels, Michels Homes

Harstad v. Woodbury at a Glance

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The district court held that Woodbury’s Major Roadway Assessment was an illegal impact fee and in addition, is an illegal tax.

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Twenty years ago, the court weighed in on a similar major case in Country Joe v. Eagan, where the Minnesota Supreme Court ruled that the Eagan fee constituted an unlawful tax.

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The Minnesota Court of Appeals hearing tested the precedent set in Country Joe and will guide how local governments apply transportation fees to new development projects.

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BATC, NAHB and Rochester developer Frank Kottschade joined as amici curiae (friends of the court) and argued: “Woodbury’s MRA is indistinguishable from Eagan’s road unit connection charge (in Country Joe). Both charges were motivated by the purpose of raising revenue rather than recouping the cost of regulation. Thus...the MRA is a tax that is unlawful because it is not authorized.”

Get Housing Industry News as it happens: Sign up at HousingFirstMN.org • Follow us on Twitter @housingfirstmn

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Housing at theAFFAIRS Capitol REGULATORY

Regulatory Affairs Roundup Minnesota Department of Labor and Industry Preparing for New Codes Minnesota Department of Labor and Industry (DLI) staff have begun assembling a list of code changes and is working with interested parties to assemble their Technical Advisory Groups (TAGs). The Construction Code Advisory Council will officially appoint TAG members at an upcoming meeting, with the TAGs beginning their work after the first of the year. The 2018 Residential Building and Energy Codes are expected to go into effect in the first quarter of 2020. Townhome Maintenance Plans Now Required The housing industry’s common interest communities reform bill became law on Aug. 1, which includes a new requirement for developers of townhomes and condos. The new law, part of the Minnesota Homeownership Initiative, requires developers to present the homeowners association (HOA) with a maintenance plan for common areas only when turning the HOA over to residents. The law is in effect for any HOA changing hands on or after Aug. 1, 2017. New State Released

Minimum

Wage

On Aug. 17, the Department of Labor and Industry released the updated statewide minimum wages, which go into effect on Jan. 1, 2018. Large Employer (annual gross revenue of $500,000 or more):

$9.65 per hour Small Employer (annual gross revenue of less than $500,000): $7.87 per hour 90-Day Training and Youth Wages: $7.87 per hour Controversial Federal Rule Rescinded

Water

The Trump administration announced in late June that it will repeal the Waters of the United States (WOTUS) rule. WOTUS, enacted in 2015, gave the Environmental Protection Agency and the Army Corps of Engineers the ability to protect “navigable waterways,” the effect of which has been delays and costly federal permits to build or modify lands near covered waterways. The main criticism of the WOTUS rule is that it expands the definition of federally-regulated waters far beyond what the rule was intended to protect, including canals, collection ponds, ditches and isolated wetlands. Minnesota Looks to Increase Stormwater Permit Fees Construction stormwater permit fees could increase under a proposal from the Minnesota Pollution Control Agency (MPCA). A proposal to increase water fees comes after a report from the Legislative Auditor recommended the MPCA increase fees to cover the costs of its water quality programs. MPCA sought public comment on its proposal this summer, however specific details on the increase in these fees was not included in the information

Ask a Building Code Expert By PETER KULCZYK

provided by the agency. Housing First Minnesota was the only organization to submit comments on behalf of Minnesota’s housing industry, asking MPCA to consider the additional cost pressures the construction stormwater permit, permanent stormwater management and related fees place on prospective Minnesota homebuyers. MPCA is currently evaluating and responding to the comments it received. 2018 Construction Stormwater Permit The MPCA is in the final stages of preparing the 2018 construction stormwater permit, a draft of which is expected to be released in September. MPCA has said that other than a new format to the permit, few changes are in the works that would affect home builders and developers. Once the draft 2018 permit is available, the MPCA will seek public comment before moving on to the final stages of rulemaking. The 2018 permit will go into effect immediately upon its final adoption, which MPCA is hoping to complete later this year. Housing Industry News will provide readers with a copy of the proposed 2018 permit and commentary at www. HousingFirstMN.org/Housing-IndustryNews once a draft is available. Stay up to date on all the latest news and information affecting Minnesota’s housing industry. Sign up for email updates at HousingFirstMN.org.

Green Code Knowledge

Got building construction related questions? We have the answers! Q: Does the code require a design professional, such as a licensed architect or engineer, for the design of a dwelling or townhouse building? A: No. The construction provisions

in the code are generally written as a conventional document, within prescribed limits, and referred to as a prescriptive code. Building components such as footings, foundation walls, studs, joists, rafters, sheathing, and many others have limitations based on criteria that has been established over decades of practice. When a building of otherwise conventional construction contains structural elements exceeding the limits of the code then these elements must be designed in accordance with accepted engineering practice. For example, many components, such as engineered wood and metal trusses, engineered wood structural panels, pre-cast concrete floor and wall panels may have engineered data provided by the manufacturer. If the Building Official of the jurisdiction has determined that some elements of the structure exceed the limits of the prescribed code, or that additional information needs to be provided to show how an engineered element works with adjacent conventional construction (such as pre-cast concrete plank for an attached two-level garage), then the Building Official has the authority to require a design professional at no cost to the jurisdiction. Q: Can the local Building Official place a Stop Order on an entire house project, affecting all trades, when it appears that only one phase of the project may be in violation? For example, one of our projects was stopped completely because the drywall contractor started

covering the interior walls prior to the insulation being inspected and approved. A: A Stop Order can be used by the

Building Official at any time during the construction. It would normally be used as a last resort after other means to obtain compliance have failed. In the situation that you describe with the drywall contractor, the Building Official probably placed the Stop Order in an attempt to verify the proper installation of the insulation, vapor retarder and maybe the air barrier. Although the code is not specific to what extent the Stop Order should affect other trades on the project it would seem appropriate that only the drywall contractor should be affected in this situation, but allowing other trades to continue. Q: What is the net clear minimum opening size for an emergency escape and rescue window (sometimes referred to as the egress window) intended for a bedroom addition or in the bedroom of a new home?

The net clear minimum opening size for an emergency escape and rescue window is as follows: 20 inches net clear width 24 inches net clear height 5.7 square feet overall net clear

Have a code question you’d like answered? Send it to Info@HousingFirstMN.org

How Can You Get Engaged in the Housing Movement?

Become a Subscriber: HousingFirstMN.org

Contribute News Stories: info@HousingFirstMN.org

Silt fencing and ground control measures on a newly-developed lot

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Minnesota’s Proposed RRP Rules At A Glance: • Renovations and remodeling projects in Minnesota would adhere to Minnesota’s RRP Rule. • Minnesota Department of Health will enforce rules locally. • Cleaning and extra staffing make for costly labor charges. • Exceptions made for property owners doing work themselves. Want to learn more about Minnesota’s proposed RRP Rules? Visit http://www.housingfirstmn.org/housing-industry-news/ for a brief video overview.

CONTINUED FROM PAGE 1

Proposed Rules Put Cost of Remodeling out of Reach Bill Gschwind, attorney, Minnesota Construction Law Services and the chair of Housing First Minnesota’s Regulatory Affairs Subcommittee. “The rule proposed by the Department of Health adds documentation and work practices more consistent with lead abatement. These changes add uncertainty and disruption that will significantly drive up remodeling costs.” Remodelers estimate that the cost of renovations to pre-1978 homes will skyrocket. Initial

estimates are that under the language released in July, RRP project costs would at least double in cost. “Housing First Minnesota has significant concerns with the direction taken by the Department in proposed Minnesota Rules,” Nick Erickson, regulatory affairs manager of Housing First Minnesota said in a July letter to the Minnesota Department of Health . “We ask the Department to revisit the proposed Rules, which should be modified to more closely align with

the existing EPA RRP Rules.” The letter also outlined how the Department’s proposal would reduce the overall number of remodeling projects while increasing unpermitted remodeling projects. In mid-July, Erickson met with senior EPA officials regarding the transition to a state-administered rule. The group has also organized a series of meetings with other housing groups, including the Minnesota Association of REALTORS, NARI-MN, the Minnesota Multi

Housing Association, the Contractors Association of Minnesota and the Central Minnesota Builders Association. Housing First Minnesota submitted an alternate proposal to the Minnesota Department of Health in August dropping many provisions remodelers say drive up costs without improving outcomes. The Minnesota Department of Health met with interested parties in late August and is in the process of revising the proposed rules based

on feedback from stakeholders over the costs to consumers. Housing First Minnesota will issue a revised cost analysis in late September and is committed to working with the Department of Health to ensure remodeling of pre-1978 homes remains affordable. Final adoption of Minnesota’s RRP Rules is expected in 2018.

Crystalline Silica Rule Enforcement Begins Sept. 23 OSHA will begin enforcement of its crystalline silica rule on Saturday, Sept. 23. Issued in March 2016, the rule seeks to limit exposure to silica by reducing the permitted amount of silica exposure from 250 micrograms per cubic meter over an eight-hour period to 50 micrograms. Silica is found in many commonly used building products including concrete, mortar, bricks, blocks, rocks and stones. The use of grinders, masonry saws, jackhammers, handheld powered chipping tools, drills and other tools on these substances can expose workers to silica. The rule contains a comprehensive list of silica exposure control methods as well as alternative exposure control methods. Additionally, companies must: • Establish and implement a written exposure control plan that identifies tasks that involve silica exposure and methods used to protect workers, including procedures to restrict access to work areas where high exposures may occur. • Designate a person to implement the written exposure control plan.

• Restrict housekeeping practices that expose workers to silica where feasible alternatives are available. • Offer medical exams—including chest X-rays and lung function tests—every three years for workers who are required by the standard to wear a respirator for 30 or more days per year. • Train workers on work operations that result in silica exposure and ways to limit exposure. • Keep records of workers’ silica exposure and medical exams. The rule includes exemptions for procedures in which the risk of silica exposure remains low, including removing concrete formwork, mixing mortar and pouring concrete footers, slab foundation and foundation walls. Exposure to silica can cause kidney disease, lung cancer and other respiratory conditions. Enforcement of the rule was to begin in June but was delayed 90 days due to the unique nature of the requirements in the construction standard.

Join the Housing First Minnesota Advocate Network Are you willing to contact your elected officials on behalf of the housing industry? Join Housing First Advocate Network (HFAN). When our industry is faced with challenges, it’s important elected officials hear directly from their constituents in the industry. The Housing First Advocate Network is a grassroots network utilized to advocate for the industry at all levels of government. Join the cause. Sign up at HousingFirstMN.org

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Housing First Minnesota Honors Legislators

2017

HOUSING LEADERSHIP AWARDS Recipients of the Housing Leadership Award received a certificate and letter of appreciation.

29 Receive Housing Leadership Award Housing First Minnesota, the state’s leading voice for home builders and remodelers, has recognized 29 Minnesota Legislators as recipients of the 2017 Housing Leadership Awards. The nomination recognizes legislators for their efforts throughout the 2017 legislative session to promote homeownership at a price families can afford. Recipients of the Housing First Minnesota 2017 Housing Leadership Awards:

Representative Kurt Daudt

Representative Greg Davids

Representative Pat Garofalo

Representative Jon Koznick

Representative Eric Lucero

Representative Paul Marquart

Representative Jim Nash

Representative Anne Neu

Representative Gene Pelowski, Jr.

Representative Joyce Peppin

Representative Roz Peterson

Representative Dennis Smith

Representative Tama Theis

Representative Bob Vogel

Senator Paul Anderson

Senator Tom Bakk

Senator Rich Draheim

Senator Kari Dziedzic

Senator Melisa Franzen

Senator Paul Gazelka

Senator Dan Hall

Senator Karin Housley

Senator Mary Kiffmeyer

Senator Warren Limmer

Senator Matt Little

Senator Eric Pratt

Senator Jerry Relph

Senator David Senjem

Senator Torrey Westrom

Minnesota House of Representatives • • • • • • • • • • • • • •

Representative Kurt Daudt (Crown) Representative Greg Davids (Preston) Representative Pat Garofalo (Farmington) Representative Jon Koznick (Lakeville) Representative Eric Lucero (Dayton) Representative Paul Marquart (Dilworth) Representative Jim Nash (Waconia) Representative Anne Neu (North Branch) Representative Gene Pelowski, Jr. (Winona) Representative Joyce Peppin (Rogers) Representative Roz Peterson (Burnsville) Representative Dennis Smith (Maple Grove) Representative Tama Theis (St. Cloud) Representative Bob Vogel (Elko New Market)

Minnesota Senate • • • • • • • • • • • • • • •

Senator Paul Anderson (Plymouth) Senator Tom Bakk (Cook) Senator Rich Draheim (Owatonna) Senator Kari Dziedzic (Minneapolis) Senator Melisa Franzen (Edina) Senator Paul Gazelka (Brainerd) Senator Dan Hall (Burnsville) Senator Karin Housley (Stillwater) Senator Mary Kiffmeyer (Big Lake) Senator Warren Limmer (Maple Grove) Senator Matt Little (Lakeville) Senator Eric Pratt (Prior Lake) Senator Jerry Relph (St. Cloud) Senator David Senjem (Rochester) Senator Torrey Westrom (Elbow Lake)

Saving for a Down Payment Just got Easier for First Time Homebuyers First-Time Homebuyer Savings Account signed into law in Minnesota The American Dream of homeownership just became a bit easier to achieve in Minnesota. Prompted by the Minnesota REALTORS and Housing First Minnesota, the Minnesota legislature this year adopted a new law authorizing the First-Time Homebuyer Savings Account. Start saving today and deduct 100 percent of your interest earned from your Minnesota taxes. Details for the new law are: • Parents or grandparents can set up an account and receive a deduction from their own state taxes.

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HOUSING INDUSTRY NEWS

• Individuals can deposit money annually into a FDIC-insured savings account. • The account can be opened at any Minnesota bank or credit union. • Contributions to the account receive a state tax deduction on interest earned. Individuals can deposit up to $14,000 annually, while married joint filers can deposit up to $28,000 per year. • The plan applies to first-time homebuyers and those re-entering the housing market if

they have not owned a home within the past three years. • Effective for taxable years beginning after Dec. 31, 2016. The Minnesota REALTORS and Housing First Minnesota launched the Minnesota Homeownership Initiative designed to help builders produce safe, durable homes at a price people can afford in communities they love. The First-Time Homebuyer Savings Account was a key element of the initiative and was authored by Rep. Greg Davids (R.-Preston) and Sen. Karin Housley (R.-St. Mary’s Point).

STORY EXTRA

Watch: CCX Media’s Alexandra Renslo reports on the First-Time Homebuyer Savings Account and interviews Mike Devoe of CalAtlantic Homes and Mark Foster of Housing First Minnesota. To view this segment visit HousingFirstMN.org blog or go to https://youtu.be/Ng5oF68TNJU.

Two major housing initiatives that were passed by the Minnesota Legislature and signed into law by Gov. Dayton during the 2017 legislative session took effect on Tuesday, Aug. 1.

HOUSING LAWS NOW IN EFFECT First-Time Homebuyer Savings Account Effective Date: For taxable years beginning after Dec. 31 of 2016 The First-Time Homebuyer Savings Account was a leading proposal of the homeownership initiative. Importantly, this program is NOT a government handout. Instead, it encourages Minnesotans to save more of their own money by providing tax deductions and incentives to help achieve the dream of owning a home.

The Law States: •

•

Individuals can deposit money annually into an FDIC-insured savings account. The account can be opened at any Minnesota bank or credit union. Contributions to the account receive a state tax deduction on interest earned. Individuals can deposit up to $14,000 annually, while married joint filers can deposit up to $28,000 per year.

•

Parents or grandparents could set up an account AND receive a deduction from their own state taxes.

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The plan applies to first-time homebuyers and those reentering the housing market, if they have not owned a home within the past three years.

Authors:

Rep. Greg Davids (R-Preston)

win Home Sprinkler T Fix, Continuation of BATC v DLI

Remove Barriers to Developing Condos/ Townhomes

Public Notice for Housing Moratorium

Effective Date: June 5, 2017

Effective Date: Aug. 1, 2017

For the past four years, BATC has been fighting against mandated sprinklers in any single-family or twin home construction. Following the landmark victory in BATC v. DLI where the sprinkler mandate was struck down in one and two-family homes, the industry faced a new challenge—the court decision and code definition weren’t aligned.

HF1538 (Chapter 87), amends the Minnesota Common Interest Ownership Act to provide for construction defect claims.

On Monday, May 15, Gov. Dayton vetoed HF 330, a bill that would have required public notice prior to the implementation of a housing moratorium. In his veto letter, Gov. Dayton stated: “Should a subsequent bill provide for a majority vote instead of two-thirds, I would reconsider this legislation.”

The 2017 legislature addressed this technical issue with both the Senate and the House of Representatives voting unanimously for HF 792.

The Law Requires: •

That a homeowners association mail each member of the association the nature of construction defect claim, the relief sought and the HOA proposal to fund the litigation.

The law directs the Department of Labor and Industry to modify Minnesota’s Building Code to match the national building code. The legislation follows the Minnesota Court of Appeals’ directive in BATC v. DLI, where the sprinkler mandate in one and two-family homes was struck down.

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The homeowners association to receive majority approval from its members to proceed with a construction defect claim.

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Prior to any construction defect claim, both parties must agree to mediation.

Housing First Minnesota will continue to seek a permanent statutory solution to the sprinkler policy issue. Absent establishing an affirmative position in statute, the sprinkler debate will begin again in the next code cycle, which starts in late 2017.

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The association’s board of directors shall prepare and approve a written preventative maintenance plan, maintenance schedule and maintenance budget for the common elements. The association shall follow the approved preventative maintenance plan.

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Expands the definition of a construction defect claim.

This bill had broad support including Housing First Minnesota and the Builders Association of Minnesota.

Authors:

Sen. Karin Housley (R-St. Mary’s Point)

A Housing First Minnesota task force has complied a CommonInterest Community work plan, which is available to all Housing First Minnesota subscribers.

Rep. Tama Theis (R-St. Cloud)

Authors:

Sen. Rich Draheim (R-Madison Lake)

Rep. Dennis Smith (R-Maple Grove)

Housing First Minnesota continued to work with legislative leaders and Gov. Dayton to find common ground on this issue in the closing days of the legislative session. And with that, the provision was included as part of the Jobs and Economic Growth Omnibus Bill, SF 1456, that Gov. Dayton signed into law.

The Law Requires: •

A 10-day notice and a public hearing before enacting a moratorium that would regulate, restrict or prohibit activities relating to housing.

Authors:

Sen. Kari Dziedzic (DFL-Minneapolis)

Rep. Jim Nash (R-Waconia)

Sen. Dan Hall (R-Burnsville)

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Housing theTHE Capitol HOUSINGatON HILL

Gubernatorial Candidates Discuss Housing Issues The housing industry makes up approximately 15 percent of Minnesota’s GDP, second only to the healthcare industry. From providing good-paying jobs for construction workers to building the American dream, the housing industry is an integral part of Minnesota’s economy. That’s why Housing First Minnesota is inviting candidates for governor to discuss the regulatory pressures and workforce challenges facing the industry. “We know that regardless of who is elected, we need to be able to communicate the key issues that are facing the housing and construction

industry. We are optimistic that our invitation to the candidates will be a great place to begin that discussion,” said Daryl Doehr, senior regional sales manager of Marvin Windows and 2017 Housing First Chair. Over the past two months, numerous candidates have met with the task group of industry leaders to engage in a conversation about the future of the state of Minnesota. You can continue the conversations by following our social media: @HousingFirstMN on Twitter and Housing First Minnesota on Facebook.

“We know that regardless of who is elected, we need to be able to communicate the key issues that are facing the housing and construction industry. We are optimistic that our invitation to the candidates will be a great place to begin that discussion,” State Auditor Rebecca Otto (DFL), a gubernatorial candidate, discusses housing issues with Housing First Minnesota leadership

Daryl Doehr, MARVIN WINDOWS AND 2017 HOUSING FIRST CHAIR

Left to right: Gubernatorial Candidates Hennepin County Comissioner Jeff Johnson (R), State Rep. Paul Thissen (DFL), State Rep. Matt Dean (R)

Housing Industry Advocate Advances in Bloomington City Council Race Shawn Nelson, housing industry advocate and former Builders Association of the Twin Cities president, placed second in the primary for Bloomington City Council-District 2 on Aug. 8. With his second place finish out of four candidates, Nelson advances to the general election on Nov. 7. He will face Eldon Spencer in the two-person race. Nelson owns and operates his remodeling business, New Spaces, in Bloomington. He is also a long-time Bloomington resident, husband to Ann and father of two daughters.

“Housing policy has to be a priority for Bloomington. We need a mix of housing options for our community. We need to plan for our boomers transitioning to smaller houses, continue to attract families, and make it possible to provide workforce housing.”

TRACK THE CONVERSATION ON TWITTER: @housingfirstmn #MNHomeownership

GET HOUSING NEWS AS IT HAPPENS: Sign up at HousingFirstMN.org

Shawn Nelson, CANDIDATE FOR BLOOMINGTON CITY COUNCIL

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HOUSING INDUSTRY NEWS

Sen. Draheim Shares His Thoughts on Housing As the housing movement has begun to take shape over the last couple of years, several leaders have stepped forward to advance the cause for housing affordability and homeownership. One of the emerging leaders in 2017 has been Senator Rich Draheim (R-Madison Lake), a first-term senator from District 20, which includes the exurban cities of Northfield, New Prague, Belle Plaine and Elko New Market. For Draheim, housing issues are not a secondary issue. In fact, they are central to his body of legislative work. “Probably the number one topic in every committee I’m on is affordable housing,” says Draheim. “Our caucus talks extensively about the connection between regulatory requirements and the price of housing. “While mandates can sometimes create a better product, the return on investment is something in the future we’ll be looking at a little closer,” he said. This was the case with the sprinkler mandate that was previously required in twin homes. Draheim authored House File 792 that

effectively removed this mandate and was signed into law on May 2. “The support of this legislation was fantastic. When you talk about af-

“There are two main things you look at when discussing a career. Is it enjoyable work and can you provide for your family? Construction jobs accomplish both of these.” Senator Rich Draheim, R-MADISON LAKE

fordable housing, twin homes are at the front of mind,” said Draheim. In addition to the regulatory costs, Draheim shares the industry perspective on the equally vexing challenge for housing affordability, the lack of work force to design, supply, build and sell homes. “I see a lot of growth throughout my entire district, with new building happening everywhere. But, the biggest holdup continues to be finding

enough skilled workers. If the workforce was there, I think we could see nearly twice the expansion.” With a background in real estate himself, Sen. Draheim says it comes down to a couple of key factors. “There are two main things you look at when discussing a career. Is it enjoyable work and can you provide for your family? Construction jobs accomplish both of these,” continued Draheim. Draheim has multiple platforms to share his perspective on the workforce issue, including as the vice chair of the Senate Higher Education Finance and Policy Committee. “I believe the two-year colleges throughout the state are making adjustments to encourage the trades more and more. I’d like to continue to have a similar conversation with the K-12 schools.” As the owner of Weichert REALTORS, Community Group of Mankato, the simple pleasures of a career in housing development aren’t lost on Sen. Draheim. “Watching a building project is fun, it’s exciting.”

Sen. Rich Draheim, emerging housing leader, speaks on the Senate floor during the 2017 Legislative Session. Credit: Minnesota Senate Republicans

Congressional Round-Up: Industry Leaders Discuss Labor, Regulatory Pressures Housing First Minnesota and the Central Minnesota Builders Association (CMBA) each hosted members of Minnesota’s Congressional delegation over the summer. Housing First Minnesota met with Rep. Erik Paulsen (CD-3) and Rep. Jason Lewis (CD-2) to discuss the labor challenges and regulatory pressures facing the housing industry. Congressmen Paulsen and Lewis serve the highest growth areas of the state where their constituents are

impacted by the reduced inventory and increased costs associated with these challenges. CMBA hosted the first of multiple scheduled meetings with Rep. Tom Emmer (CD-6) to discuss issues affecting the building industry in Central Minnesota. These conversations provide opportunities for deeper policy discussions, with the hope that over time this industry engagement with our congressional delegation will lead to

“Conversations with elected officials are key to elevating the issues that face the housing industry.” David Siegel,

HOUSING FIRST MINNESOTA

a more balanced regulatory structure and an enhanced labor market.

Housing First Minnesota board member, Charlie Bradburn, shows Congressman Paulsen (CD3-R) the ABC Millwork production facility in Chanhassen, Minn.

Housing First Minnesota members pose for a picture with Congressman Jason Lewis (CD2-R) outside a Lennar Minnesota model home in Lakeville, Minn. SIGN UP TO BE A PART OF THE HOUSING MOVEMENT • HOUSINGFIRSTMN.ORG

CMBA hosted the first of multiple scheduled meetings with Congressman Tom Emmer (CD6-R) to discuss the issues affecting the building industry in Central Minnesota HOUSING INDUSTRY NEWS

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INDUSTRY IN ACTION

Housing Industry Gathers at Minnesota State Fair Members of Housing First Minnesota, the Minnesota REALTORS, the Saint Paul Area Association of REALTORS (SPAAR) and the Minneapolis Area Association of REALTORS (MAAR) gathered at the Minnesota State Fair to promote homeownership and housing affordability on Monday, Aug. 28 for Housing Day at the Fair. Hundreds of housing industry members spread the word of the importance of homeownership and called attention to the new First-Time Homebuyer Savings Account recently passed by the Minnesota legislature.

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HOUSING INDUSTRY NEWS

Home Tours Engage Consumers Home tours give the public the opportunity to see what’s on the market in new home construction and the latest in remodeling. They also serve as a vehicle to showcase new products, styles and technology to consumers. Builders associations across the state present these home tours as an opportunity for members to reach consumers directly and advertise their work. Dan Shay, executive officer for the Vikingland Builders Association, said that consumers come out to see the homes on their tour because they intend to build or remodel in the next year. It allows their members to showcase what they’re capable of and highlights the contractors and subcontractors that work on the projects. “I think home tours have a great impact on the building industry. The tour gets the consumer thinking about what they like for their new construction or their remodel. Tours get people motivated to get their projects started,” said Shay. The tour is often the catapult to get consumers to take action on their projects, and it helps them make decisions on who to work with. This year, the Vikingland Builders Association Home Tour, which ran Aug. 26-27, featured seven homes. “We are seeing that the attendance for the tour is increasing each year. The consumers are more informed and are looking for specific styles of workmanship,” said Shay. “Builders can provide what they are looking for.” Wendy Danks, marketing director for the Builders Association of

the Twin Cities, agrees that consumers are becoming increasingly informed about what they’re looking for, and emphasized how important it is to recognize the changes in how consumers shop for homes. “As online homes-for-sale searches and other resources have blossomed, buyers today have winnowed through plenty of information ahead of time and come in much more

“There’s nothing that can replace actually walking through and experiencing a home in person — from the flow and usability of space to the benefits of its neighborhood.” Wendy Danks, BUILDERS

ASSOCIATION OF THE TWIN CITIES

informed about their choices, their needs and wants,” she said. The Builders Association of the Twin Cities puts on The Parade of Homes® and Remodelers Showcase® twice each year. This fall’s tours feature more than 400 new homes and 64 remodeled homes over four weekends. The number of homes on the tour has fluctuated with market changes, but has consistently been an important marketing tool for builders, remodelers and suppliers. “There’s nothing, not even virtual reality yet, that can replace actually

walking through and experiencing a home in person — from the flow and usability of space to the benefits of its neighborhood,” said Danks. In addition to the home tours that showcase homes within a wide range of price points, there are a select number of ticketed home tours that showcase luxury homes. This was the fourth year for the Artisan Home Tour, a high-end home tour presented by the Builders Association of the Twin Cities. This year, the 19 new homes on the tour had an average of 2,453 visits per home, a 56 percent increase over 2016, and remodeled homes averaged 740 visits over the final three days, a 125 percent increase over 2016. There were nearly 50,000 total visits across the 21 homes. Tours like this show the strength of the luxury home building market, as well as the strong interest consumers have in the latest design and technology for homes. Danks added that, although the brand promise of the Parade of Homes has stayed the same throughout the years, it’s important to be ready to change marketing plans and introduce new tools to enhance the consumers’ experience with home tours. “The world continues to change and evolve, and at a breakneck pace. So vigilance, research, metrics and analytics, and continued improvements are vital to remain relevant and successful,” said Danks.

2017

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CONTINUED FROM PAGE 1

Home Builders Best Summer Since 2007 suppliers are benefiting from this summer’s strong construction activity, too. More new homes require more building materials. Just ask Arrow Building Centers, which has locations throughout western Minnesota and eastern Wisconsin. “Across the board, business has been good this year,” said Ron Schumacher, president and CEO of Arrow Building Centers. “Our organic growth has been on par with the growth seen by the entire industry.” Labor and Regulatory Pressures One thing you’ll hear across the state from builders and suppliers is that the busy summer of 2017 highlights the labor shortage felt by the entire housing industry. “Many of our trade partners are impacted by the labor shortage affecting the home building industry,” said Slaikeu of DR Horton. “External factors, such as the storms that impacted the Twin Cities this

summer, also affect workforce availability. As demand continues to grow, the industry must continue to attract new workers.” According to Project Build Minnesota, a coalition of groups aimed at growing the construction labor force, 79 percent of contractors and subcontractors cannot find enough qualified workers. The industry has responded by increasing wages in an attempt to attract and retain workers. “Due to this labor shortage, building costs are increasing rapidly and projects are taking longer to complete,” said Dennis Medo, president of Project Build Minnesota. “The greatest threat to the Minnesota construction industry is the lack of qualified labor entering the market.” In addition to increasing labor costs, home prices are climbing upward due to Minnesota’s regulatory environment. “Everyone wants to build safe homes that are affordable, but we’re

beyond the point in Minnesota where you can build affordably,” said Dan Severson, president of Rochester-based Dan Severson Builders. New Laws Helping Industry Minnesota’s home builders are getting some added lift thanks to new laws that passed this year. Legislation was signed into law that removes barriers to condo and townhome development and encourages more multifamily starts. The new law, authored by Rep. Dennis Smith (R-Maple Grove) and Sen. Kari Dziedzic (DFL-Minneapolis), reduces the legal risks associated with multifamily projects. In July, Twin Cities multifamily construction rose 30 percent over the previous year, accounting for 60 percent of all new home activity that month. Twin home construction is also starting to return, now that the legislature moved to have the building code reflect the BATC v. DLI court decision from 2015 and removed

Twin home built by RW Builders in Princeton, Minn.

mandatory sprinklers from twin homes. The bill was authored by Rep. Tama Theis (R-St. Cloud) and Sen. Rich Draheim (R-Madison Lake). Without the added burden of sprinklers, the cost to build a new twin home has been reduced by about $10,000. “We didn’t build any twin homes when sprinklers were required,” said Ron Weyer, project manager of RW Builders of Princeton. All that has changed for RW Builders. The company has started building a 50unit twin home project in Princeton marketed to seniors.

Looking Ahead Given the strong start to the first half of 2017, Minnesota will see more homes built this year than in any year in a decade. In the first seven months of 2016, Minnesota’s home builders built 7,621 single-family homes. In total, 13,612 single-family homes were built last year, just shy of the 13,837 homes built in 2007, the last full year before the housing crash. Should home builders finish the year with numbers similar to what they did in 2016, Minnesota could see its first year above pre-crash levels for new residential construction. HOUSING INDUSTRY NEWS

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Minnesota Contractor Credit Course Now Available Online Contractor University, the education program of the Builders Association of the Twin Cities, has launched an online course in addition to its popular in-person class offerings. Its first online course, New Home Construction from Permit Application to Final Inspection, has been certified by the Minnesota

Department of Labor and Industry and counts toward seven contractor and building official education credit hours in Minnesota, including energy credit. Peter Kulczyk, principal of Green Code Knowledge and Housing Industry News contributor, teaches the course that covers the construction

process for a single-family home in Minnesota under the 2015 Minnesota Residential Code and 2015 Minnesota Energy Code. Participants will go in-depth on the permit process, plan review, alternative materials and the inspection of the footings, foundations, waterproofing, foundation insulation

options, framing, water-resistive barriers, exterior envelope, wall and attic insulation materials, vapor retarders, interior air barriers, thermal barriers, unvented roofs, emergency escape and rescue, roofing materials, guards, means of egress, emergency escape and rescue, wood-plastic composite materials and interior finishes.

Unlike in-person courses, participants will have 180 days to complete the course after launching. The cost for the course is $98. Members of the Builders Association of the Twin Cities can get a special member rate of $78.

Jim Stanton: Remembering an Industry Giant

Twin Cities Home Builders Cautiously Optimistic About 2018

The housing industry lost a giant when Jim Stanton passed away on June 17, 2017. Jim was an accomplished and decorated developer, builder, REALTOR® and thought leader in the housing industry. His broad view of housing, coupled with a strong interest in public policy and industry affairs placed him at the center of the industry’s advocacy efforts for the past four decades. Jim leaves a legacy throughout the Twin Cities with a diverse portfolio that included developing lots, building homes, and recently bringing condos to Minneapolis. Jim was also a leader in elevating the housing industry’s advocacy efforts. He understood how important it was to build homes affordably and he devoted countless hours over the past three decades to this cause. Earlier this summer, Jim was with

Minnesota’s home builders are in the middle of their best year in a decade, leading to an optimistic outlook for 2018, according to a survey form the University of St. Thomas. The survey, which is a partnership between the University of St. Thomas and the Builders Association of the Twin Cities, polls the same panel of 35 industry leaders annually in June and again in

his peers in a Housing First planning meeting and, as always, he was looking forward to opportunities to continue to elevate the housing industry. He was a man with a great sense of humor and was truly one of a kind. Jim will be greatly missed.

Get Housing Industry News as it happens: Sign up at HousingFirstMN.org Follow us on Twitter @housingfirstmn

HOUSING INDUSTRY NEWS

While builders are feeling optimistic about 2018, affordability issues and increased mortgage rates leave builders a bit cautious as well. “There are still several factors holding new construction back including land prices, the regulatory burden and a shortage of labor,” said David Siegel, executive director of the Builders Association and Housing First Minnesota.

Respondents score each item on a scale of zero to 100. A midpoint score of 50 is neutral; scores higher than 50 indicate a more favorable outlook and scores lower than 50 indicate a more pessimistic outlook.

SCORE

Housing Starts

Square-foot Sale Price

Land Prices

Up from 61 starts in December 2016, the increase indicates a high expectation that the number of single-family housing starts will show a marked increase in 2018.

An increase of two points from December’s score shows continued expectations that home prices will continue to increase.

Builders’ confidence in land prices fell sharply on indications are that the rate of increased land prices will accelerate in 2018, with higher land prices affecting home affordability.

SCORE

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December about their expectations for the upcoming year in six key areas of the housing market. “The industry leaders we poll every six months are actively engaged in studying both the demand and supply side of the housing market,” said Herb Tousley, director of real estate programs at the University of St. Thomas. “These individuals are close to the actual changes taking place in the market.”

Availability of Finished Lots The nine-point increase shows builders share increased optimism that there will be an increase in the availability of finished lots in 2018.

Cost of Building Materials

Mortgage Rates

The outlook for the expected increases in the costs of building materials continues to persist, increasing costs to buyers. These expected increases in costs could affect affordability, reducing the number of new homes built.

Unchanged compared to December, builders continue to expect mortgage rates to increase in the next 12 months. The affordability issues created by higher rates could put a damper on building activity.

Housing Market Report Year-To-Date Single-Family Construction Select Cities Coming off a hot start in the first quarter of 2017, Minnesota’s single-family construction continues to be the strongest in a decade. Year-to-date through July, Minnesota single-family permits are up 10 percent. Single-family construction in the Twin Cities is up 13 percent.

State of Minnesota

Moorhead

SOURCE: CITY OF MOORHEAD

8,404

Duluth

New Single-Family Mankato Permits

(Census Data Fargo/Moorhead 214)

SOURCE: US CENSUS

St. Cloud

162

MINNESOTA SINGLE-FAMILY PERMITS

10%

SOURCE: CENTRAL MINNESOTA BUILDERS ASSOCIATION

Twin Cities

5,001 296

(St. Cloud-Area Data Not Reported to US Census)

Mankato

113

OVER 2016

SOURCE: US CENSUS

Rochester

SOURCE: US CENSUS

TWIN CITIES SINGLE-FAMILY PERMITS

SOURCE: US CENSUS

13%

SOURCE: US CENSUS. HOUSING FIRST MINNESOTA COLLECTED THE ABOVE PERMIT INFORMATION FROM AVAILABLE PUBLIC RESOURCES.

OVER 2016

United States

5.9%

6.8%

Y-Y Change

2017

$254,000

2016

$239,000

Y-Y Change

2017

$230,000

2016

$215,381 West - 55

Twin Cities Median Sales Price

Minnesota Median Sales Price

SOURCE: MPLS REALTORS

South - 55

Midwest - 57

Northeast - 46

Regional Remodeling Market Indicies SOURCE: NAHB

The Overall Remodeling Market Index is calculated by averaging the Current Marketing Index and the Future Market Indicators Index. Any number over 50 indicates that more remodelers view remodeling market conditions as higher than the previous quarter. Results are seasonally adjusted.

Minnesota Construction Employment Past 6 Months

Twin Cities Construction Employment Past 6 Months

SOURCE: DEED

HOUSING INDUSTRY NEWS

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INDUSTRY GIVES BACK

A Very Special Dream Home For Homeless Veteran Families

The five-bedroom St. Paul residence is the first home the Minnesota Assistance Council for Veterans owns and operates for veteran families

Working in collaboration with the Minnesota Assistance Council for Veterans (MACV), Lennar and its trade partners built a five-bedroom residence to house veteran families as they transition from homelessness. Owned and operated by MACV, the home is a special place for families as they receive the support and tools they need to get back on their feet. The home, the latest project from the BATC Foundation, was completed in nine weeks and is the first home MACV will operate that provides housing for homeless veterans with their families. Representatives from Lennar Minnesota, the BATC Foundation and MACV, along with Sen. Foung Hawj (DFL-St. Paul), Rep. Sheldon Johnson (DFL-St. Paul),

Connie Haddeland representing Rep. Betty McCollum (CD4-DFL) and Kurt Johnson representing Sen. Amy Klobuchar (DFL), shared their appreciation for the dedication and work put into the home at a key ceremony on Saturday, Sept. 9. “It may seem like a tiny drop of golden rain in the bucket to some people, but it means a lot to the people on the east side of St. Paul,” said Sen. Hawj. At the key ceremony, guests were invited to tour the 3,791-squarefoot home featuring five bedrooms, four bathrooms and a detached two-car garage. The MACV home is intricately designed to accommodate wheelchair access with laundry, island kitchen, great room with its full height stone fireplace, owner’s suite and private bathroom all on the

Jon Lovald, MACV, receives keys from Bob Bennet, BATC Foundation president

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HOUSING INDUSTRY NEWS

main level. It also features Lennar’s exclusive Wi-Fi certified program. “As you walk through, reflect on the skill, pride and passion all the tradesmen put into this home,” Bill Burgess, division president of Lennar Minnesota, said at the key ceremony. The MACV home is meant to be a sign of appreciation, from all the participants involved, to the veterans and their families who have fearlessly served this country. “This home displayed and revealed the most important things that I’m proud of, and that’s really the spirit of America and the spirit of Americans,” Burgess added. The hope is that this home will function as a safe haven for veterans and their families during their period of transition.

Bill Burgess, president, Lennar Minnesota discusses the many features of the new MACV home with attendees

(Left) State Senator Foung Hawj (DFL, St. Paul) and (Right) Sheldon Johnson (DFL, St. Paul) congratulate all partners involved with the project

M I N N E S O T A

HOUSING INDUSTRY NEWS September 2017, Volume 1, Issue 2 PUBLISHER David Siegel David@HousingFIrstMN.org EDITOR Katie Elfstrom Katie@HousingFIrstMN.org GRAPHIC DESIGN Dawnita Parmely Caroline Shields Hannah Swan ACCOUNTING Janice Meyer CONTRIBUTING WRITERS Katie Elfstrom Katie@HousingFIrstMN.org

Housing Industry Expands St. Michael Group Home The BATC Foundation has teamed up with Builders Association of the Twin Cities’ member Minnesota Design and Construction to update a kitchen and address some safety issues with a St. Michael Foundation group home for men. There are four residents of the St. Michael Foundation-Ash House. They are a lively group of working men with special needs. This expansion will allow them much more room in which to cook (with the help of staff ). The existing kitchen is a tight fit when just two individuals are occupying the space. In addition, the Foundation is enhancing a

set of stairs near the kitchen, which posed a safety concern when having multiple people occupy the kitchen. This was particularly important given that one resident of the group home is blind. Just as the men in the home love to cook, they are also big fans of the St. Michael-Albertville High School Football and try to make it to all the home games. They are all familiar with former Albertville football coach, Earl Bauman, a retired shop teacher and former St. Michael- Albertville Football coach, who now owns Minnesota Design and Construction Inc. It was natural

that he became the build partner for the effort. This project is set to be completed in mid-October and everyone involved from the BATC Foundation, St. Michael Foundation staff/ residents and Minnesota Design and Construction can’t wait to see the finished project. The St. Michael Foundation was established in 1982 and its mission is to aid in the mainstreaming of people with developmental delays in their community, so that they may better function in and contribute to the community in which they live. The BATC Foundation is

celebrating 21 years, and it focuses on projects with organizations, with a particular emphasis on transitional homelessness and veterans. If your company is interested in partnering with the BATC Foundation on a future project for homelessness or serving veterans, please contact Shelly Barrett at shelly@batc.org. If you are engaged in a community service project that we can highlight in Housing Industry News, please let us know at Info@HousingIndustryNews.com

Nick Erickson Nick@HousingFIrstMN.org

Mark Foster

Mark@HousingFIrstMN.org

Laura Marrinan Laura@BATC.org

David Siegel David@HousingFIrstMN.org

James Vagle

James@HousingFIrstMN.org

ADMINISTRATIVE STAFF Mary Schweich Mary@HousingFIrstMN.org

Housing First Minnesota David Siegel, Executive Director Bob Michels, President The Housing Industry News is a publication of Housing First Minnesota. The Housing Industry News is published and distributed four times per year to housing industry professionals and others associated with the home building industry. Neither the advertisers, nor Housing First Minnesota, will be responsible or liable for misinformation, misprints, typographical errors, etc., herein contained. For address change information, contact Housing First Minnesota. Suggestions, ideas and letters are welcome. HOUSING INDUSTRY NEWS 2960 Centre Pointe Drive Roseville, MN 55113 info@housingfirstmn.org www.HousingFirstMN.org Housing Industry News is published by Housing First Minnesota

Minnesota Design + Construction digging foundation for kitchen addition

Earl and Randy, Minnesota Design + Construction, discussing progress on the addition

Housing First Minnesota is the voice for home builders, remodelers and all who are dedicated to building safe, durable homes at a price Minnesotans can afford. Housing First Minnesota was created to advance the interests of the housing industry, engage industry members, and to be the leading resource for housing-related issues in Minnesota. Housing First Minnesota is a modern, comprehensive advocacy program that is dedicated to helping industry professionals grow their businesses. Originating as a program of the Builders Association of the Twin Cities, Housing First Minnesota recognizes its role as the state’s voice for the housing industry and engages industry members in advocacy opportunities related to grassroots advocacy, legislative lobbying, regulatory issues with state agencies, political elections, and events such as Housing Day at the Capitol. Our advocacy work has never been more important. The housing industry remains under intense regulatory pressures that impact Minnesota homeowners’ ability to buy, build, and remodel their dream home. Housing First Minnesota supports reasonable regulations and protections, but our call for balance in rules and affordability for families is a voice that must be heard.

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