Housing Industry News Vol. 2 Issue 2 - June 2018 by Housing First Minnesota

M I N N E S O T A

HOUSING INDUSTRY NEWS

INSIDE Legislature Adjourns

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Housing Leadership Awards [PG. 8]

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

VOL. 2 ISSUE 2, JUNE 2018

Housing Affordability Wins in Building Code Recommendations Housing First Minnesota Leads Industry to First-Round Victory Initial review of the Energy Code Technical Advisory Group (TAG) report is good news for Minnesota’s housing industry, as the report did not include adoption of a new, costlier Residential Energy Code. The Minnesota Department of Labor & Industry (DLI) released the reports of its TAGs on May 15. The report, which recaps the technical review of model code changes from nearly 50 TAG meetings, gives builders the first glance at possible changes to the state’s building codes. Report Contents The report for the State Building Code outlines the recommended model codes to be adopted, as well as proposed Minnesota-specific ammendments. Code Administration: No changes affecting residential construction were included in the administration area. Energy Code: The report highlights the disagreement on the need to adopt a new Residential Energy Code, noting it was the only model code the TAGs did not recommend adopting. Residential Building Code: The Residential Building Code TAG recommended the 2018 Code be adopted, with six amendments. These amendments include: • Language for tiny homes (400 sq ft or less).

Clarification and changes to the 5,000 psi concrete requirement. • Elimination of the prescriptive requirements for cantilevered foundation walls up to 7 feet tall and retaining up to 7 feet of unbalanced fill. • Exempting homes undergoing alteration and repair from the requirement to install interconnected battery-powered smoke alarms, interconnected hard-wired smoke alarms or hard-wired smoke alarms unless the interior walls or ceilings are removed. • Exempting new sleeping rooms added to existing basements that are undergoing alterations or repairs from emergency escape and rescue opening requirements where the basement and first floor are equipped with automatic fire sprinklers. • A definition for “transient use” to clarify that single- and two-family dwellings and townhouses constructed for transient use are required to have a state license. Housing Industry Pleased After a $7,000 per home increase from the current energy code and a costly sprinkler mandate that was ultimately thrown out in the BATC v. DLI court ruling, home builders dealing with rising lumber prices and the labor crisis were

First review of building code recommendations includes no major changes. CONTINUED >> PAGE 3

Housing Industry Completes Discussions with Governor Candidates 2960 Centre Pointe Drive Roseville, MN 55113 HousingFirstMN.org

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and former Governor Tim Pawlenty. The meetings capped a monthslong series of conversations that touched on three major themes: balancing regulatory costs with the CONTINUED >> PAGE 3

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After months of policy discussions on a variety of housing issues, Housing First Minnesota leaders have concluded their gubernatorial candidate discussions. The final two meetings featured Congressman Tim Walz (CD-1)

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The Growing Housing Conversation By TOM WIENER Housing First Minnesota tom@cardinalhomebuilders.com

Tom Wiener, president, Housing First Minnesota and Cardinal Homebuilders

I had the pleasure of testifying before the legislature a few times this spring and I was struck at how much the housing conversation has changed and continues to evolve. In the early part of this decade the discussion was predominantly about the housing recovery and its impacts

on families and businesses in our industry. That focus is changing. More than ever, there is an appetite and curiosity from legislators to tackle housing issues at the Capitol. These discussions have produced a much-needed discussion about local impacts to affordability, which we know will be the next major housing policy discussion. Where our industry once strived to convince skeptics about the growing impact of regulatory costs, today there is very little debate about whether or not there is a housing affordability challenge connected to our regulatory structure. That may seem like a small change, but it’s actually a huge step in the right direction. Now it is time for our industry of home builders, remodelers, developers, and suppliers to drive the homeownership and housing affordability debate forward. At Housing First Minnesota we

Housing Workforce Crisis Continues to Plague Industry As the housing market has bounced back over the past few years, the labor shortage has grown into a full-blown crisis. Minnesota’s construction labor force is aging. More skilled workers are retiring and there are not enough skilled workers to take their place. The Minnesota Department of Employment and economic Development estimates that at least 20,000 new workers will be needed in the construction industry over the next decade. The significant labor shortage at a time of record-low unemployment has made finding new workers difficult. “We’re extremely frustrated because we don’t see young people stepping up into this industry,” said Kathy Einck, co-owner of Maplewood Custom Homes in Rochester. Compounding Factors When asked about the reasons behind the labor shortage, builders across the state often give the same answers: college-centric education and the 2008 economic downturn. The downturn caused a significant reduction in the jobs in residential construction. On a jobsite today, you’ll see few 28- to-35-yearolds. During the downturn, many of the younger workers left the industry and few have returned. With jobs scarce, even fewer high school graduates entered the field from 2008-2010. “While the overall number of construction-related jobs in our state have returned to pre-crash levels, the number of people employed in home building is still at less than two-thirds of its peak from just over a decade ago,” said David Siegel, executive director of Housing First

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Minnesota and a board member of Project Build Minnesota. Builders also point to an education system with a college-only mindset as playing a central role in the labor crisis. Today, high school curriculums and graduation requirements are centered on preparing all students for a four-year college education, creating lower demand on vocational classes. With lower demand, high schools have cut back on vocational training, sometimes eliminating shop classes. “In the 45 years we’ve been in business, I’ve found it increasingly more difficult to convince young people that a career in the construction trades is a viable option,” said Lowell Pratt, co-founder of Pratt Homes, during a State Senate hearing on construction workforce legislation. Industry Adapts and Responds With the labor crisis at peak levels, builders are doing everything they can think of to meet demand, including offering higher wages and increasing overtime. Some companies have turned to recruiters or advertising to attract new workers. The Central Minnesota Builders Association’s Tools for Schools program donated $18,000 to St. Cloud-area schools. Over 14 years, the organization has donated nearly $100,000 to provide shop supplies and tools to schools across the region. Housing First Minnesota’s workforce development committee has met with senior Department of Labor & Industry officials, discussing what the department can do to encourage more industry employment.

are working tirelessly to contribute our industry expertise in this growing conversation. We know that we need smart, sensible regulations that protect natural resources and those who live in the homes we build and

“More than ever, there is an appetite and curiosity from legislators to tackle housing issues at the Capitol.” Tom Wiener, PRESIDENT, HOUSING FIRST MINNESOTA AND CARDINAL HOMEBUILDERS

remodel. But we also know that costs and homeowner affordability must be included in every regulatory discussion. I’m proud that we are housing’s leading voice in this discussion and invite all of you to join the conversation.

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Project Build MN: More Than Just a Website Project Build Minnesota, the collaborative construction industry association effort to address the industry’s workforce challenge, has several key elements to the initiative. First, Project Build has an aggressive outreach program to reach students, parents, faculty and educators through a speakers bureau and exhibiting at conferences and events. If you are willing to join the speakers bureau, contact Project Build Minnesota Executive Director Dennis Medo at dennis@ projectbuildmn.org

“This innovative approach is already beginning to get noticed. Now for this movement to succeed, we need the entire industry to step forward and carry the message.” David Siegel, EXECUTIVE DIRECTOR OF HOUSING FIRST MINESOTA Second, Project Build is engaged in a multi-year, multi-channel marketing campaign to make all of those key audiences identified above aware of the great career opportunities and the career path in our industry. The more resources it has, the broader Project Build can drive its marketing campaign. If you are willing to make a financial contribution of any size, please contact Medo or simply make a donation on the website ProjectBuildMN.org. With both the outreach effort

and the marketing campaign, all audiences are directed to a growing and powerful website and social pages, which serve as the hub for their next action. For example, if students wish to pursue certification or further education in the construction field, the Project Build Minnesota website has the first-ever comprehensive list of scholarships provided by partnering associations. In addition, the site lists a wide array of trade training and post-secondary options. And for those seeking a job immediately, the site offers a well-stocked job board powered by the members of the various associations and industry firms. In addition to the outreach program and marketing campaign, the nonprofit is seeking partnerships with organizations in the workforce development space as yet another tool to get out the word regarding our industry. The workforce shortages our industry is experiencing will not be solved quickly. It will take a multiyear, multi-channel program and this is why Housing First Minnesota launched Project Build, along with the Minnesota Builders Exchange, Associated Builders and Contractors, and The Builders Group (TBG). Medo reports consistent growth in people hearing about Project Build and reaching out as media covers the effort, the marketing campaign grows and the outreach efforts expand. If you are interested in helping Project Build Minnesota succeed, there are several ways you can help.

You can help expand the reach of Project Build Minnesota in several ways:

1 Join the Project Build Minnesota outreach effort. Let Executive Director Dennis Medo know (information below).

2 Post about Project Build Minnesota on your social media channels. We are happy to provide you with a digital logo file for your social media.

3 Make a ﬁnancial contribution to help Project Build Minnesota grow. Contact Dennis Medo.

4 Add your jobs to the job board (it’s free!). Visit the website at projectbuildmn.org and click on jobs.

Dennis Medo PROJECT BUILD MINNESOTA EXECUTIVE DIRECTOR

612-221-9849 dennis@projectbuildmn.org

CONTINUED FROM PAGE 1

Affordability Wins in Initial Building Code Recommendations worried about other significant cost increases. “The early successes of the process so far illustrate the importance of having the housing industry active in matters affecting affordability,” said Nick Erickson, regulatory affairs manager for Housing First Minnesota. Early in the Energy Code TAG process, DLI indicated it was not sure if a new energy code for residential construction would be adopted. Advocates for a costlier energy code had a major presence at meetings of the Energy Code TAG, including insulation manufacturers attempting to mandate continuous foam insulation on home exteriors. Housing First Minnesota, in a letter to DLI, stated that the new energy code is not needed, and that both builders and code officials do not want a new energy code, hav

ing just adapted to the existing code. Instead, the organization pledged to work closely with its members, the DLI and building officials to further develop and promote the current performance pathway in the existing code. During the final meeting of the Residential Building Code TAG, the Minnesota Fire Association Coalition (MnFAC) proposed reinstating the sprinkler mandate. Erickson argued against the proposal, saying that with the inclusion of interconnected smoke detectors and various other code provisions, today’s new homes are the safest in the state’s history. The Residential Building Code TAG declined to support the sprinkler proposal.

Following the CCAC discussion and review of the TAG reports, CCAC will forward the reports and any feedback to its list of affected stakeholders. Informational hearings will be held before the first official review and comment period on the state’s new building code begins. CCAC will then present the final recommended new building codes to the DLI Commissioner before the final public comment period begins. The new building codes are scheduled to go into effect in March 2020. Want to learn more about the potential changes to Minnesota’s building codes? Visit HousingFirstMN.org/buildingcode-changes.

Next Steps The Construction Codes Advisory Council (CCAC) will discuss the reports at its June 21 meeting.

Scott McLellan, DLI Assistant Commissioner, provides a code update to Housing First Minnesota.

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Housing Industry Completes Discussions with Governor Candidates need to improve housing affordability; addressing the construction workforce crisis; and assessing the proper role of the Metropolitan Council to ensure affordable land costs and housing options. These conversations are part of an effort by Housing First Minnesota leaders to keep housing as a top-tier policy issue. “Our primary objective in these discussions was to ensure that Housing First Minnesota’s emphasis of housing affordability and homeownership are a meaningful part of Minnesota’s 2018 gubernatorial election conversation,” said David Siegel, Housing First Minnesota’s executive director. Housing First Minnesota invited all major gubernatorial candidates to engage in these discussions, both Democratic and Republican. In total, 11 candidates participated in these discussions including Matt Dean, Keith Downey, Blake Huffman, Mary Giuliani-Stephens, Jeff Johnson, Erin Murphy, David Osmek, Rebecca Otto, Tim Pawlenty, Paul Thissen and Tim Walz. Congressman Tim Walz

Former Governor Tim Pawlenty

help us spread the message: TELL US WHY YOU LOVE THE HOUSING INDUSTRY

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Housing at theAFFAIRS Capitol REGULATORY

Housing Industry Secures Victory with Construction Stormwater Permit New Construction Stormwater Permit Begins Aug. 1 After months of waiting, the Minnesota Pollution Control Agency (MPCA) released the draft 2018 Construction Stormwater General Permit in April. Housing industry experts and advocates are calling the draft 2018 permit a win for the industry and homeownership, as it contains only a minor cost increase, a far cry from the $3,500 per home increase/price tag of the current permit that has been in place since 2013. What’s Changed The most notable change in the 2018 permit is the format, with MPCA staff completely reconfiguring the permit. The MPCA has also changed the repair timeframe from “the next business day after discovering” to “prior to the next anticipated rain event or three business days, whichever comes first.” In a letter to the MPCA in April 2017, Housing First Minnesota requested this change as many of its members felt the current timeframe was not always attainable. Permit coverage effective dates have also changed. Under the draft 2018 permit, the mandatory seven-day waiting period for the permit to go into effect has changed to once the permit payment has processed, typically one business day. For projects currently requiring a 30-day waiting period, the waiting period has changed to upon the completion of the application and payment process and after the MPCA has determined that the permit plan meets all the requirements. The process to amend the stormwater plan for projects when making cost effective substitutions has been improved. While most changes are viewed as an improvement, the 2018 permit does include two changes that will increase construction costs. One change, which comes from the EPA at the Federal level, requires construction materials to be covered and protected from stormwater runoff. The 2018 per mit also requires sediment controls near the base

of stockpiles in addition to perimeter sediment controls. The draft 2018 permit also included several provisions that alter enforcement of the stormwater permit. These changes include photographing failing BMPs and vague language that could hold permittees responsible for erosion well outside of the permit coverage area. What’s the Same Other than the reformatting, changes noted above and several other minor tweaks, the 2018 permit is essentially the same as it is today. A permit is still required for projects disturbing one or more acres of soil, less than one acre of soil if that activity is part of a “larger common plan of development or sale” that is greater than one acre, or for less than one acre of soil, but the MPCA determines that the activity poses a risk to water resources. Industry Responds In its comments, Housing First Minnesota said that from the viewpoint of new-home buyers, the 2018 permit is a win, but changes possibly holding permittees liable for erosion miles away from construction sites needed to be modified. The group asked the MPCA to make modifications to several new provisions that would have increased encorcement powers. Next Steps MPCA is reviewing the public comments it has received from interested parties. Soon, the final language will be made available before the permit works through the rest of the state’s rulemaking process. The 2018 permit takes effect on Aug. 1 for newly permitted projects. Currently permitted projects will have until Feb. 1, 2020, to be completed before new construction stormwater permits will need to be obtained, without permitting fees. Want to learn more about the changes in the 2018 Construction Stormwater Permit? Visit HousingFirstMN. org/stormwater for a complete list of changes and to view the 2018 Construction Stormwater Permit.

City Fee Case Heard Before State Supreme Court Twin Cities developer Martin Harstad’s suit against the City of Woodbury was heard in the Minnesota Supreme Court on May 8. The looming decision will have a major impact on the housing industry. Harstad sued the City of Woodbury in 2016, contending the city’s Major Roadway Assessment (MRA) fees, which are used to pay for traffic-related improvements throughout the city, were not permitted under state law. The city was withholding approval if his 183-home project unless he consented to the city’s $1.4 million MRA fees. Washington County Court sided with Harstad in 2016, calling Woodbury’s MRA fees “unlawful.” In September 2017, the Court of Appeals upheld the lower court’s ruling that these fees are unlawful, upholding a district court ruling. The Minnesota Supreme Court granted Woodbury’s petition for review in November, after the League of Minnesota Cities took the unusual step of filing an amicus brief encouraging the Supreme Court to accept Woodbury’s appeal. In February, Housing First Minnesota submitted a friend-of-the court (amicus) brief in support Harstad’s suit against the City of Woodbury. In the brief, cosigned by Rochester-area developer and Housing First Minnesota member Frank Kottschade and the National Association of Home Builders, the industry says the previous court

decisions, which ruled that Woodbury’s MRA fees represented impact fees not authorized by the State of Minnesota, should be upheld. In addition to the housing industry and local government interests, this case has been closely watched by policy makers and the media. Following the Court of Appeals decisions in September upholding the district court ruling in favor of Harstad, the Star Tribune ran an editorial supporting the view of the City of Woodbury and a response from Housing First Minnesota supporting Minnesota’s home builders and developers. Like the Country Joe v. Eagan case 20 years ago, the Harstad v. Woodbury decision by the Minnesota Supreme Court will have a major effect on the housing industry. If the Supreme Court upholds the previous rulings, the court would reaffirm the long-held limited taxing authorities of cities as it related to new development. Should the Supreme Court reverse the lower court decision, cities could gain increased taxing ability for new developments and possibly gain the power to withhold development agreements unless developers pay for unrelated road projects requested by the city. A decision from the Supreme Court is expected late this summer.

New Group Established to Examine Housing Affordability Issues Housing First Minnesota Legal Defense Fund Becomes The Housing Affordability Institute A new non-profit in Minnesota is looking at tackling the state’s housing affordability challenges. Formed as an independent offshoot of the Housing First Minnesota Legal Defense Fund, the Housing Affordability Institute was incorporated in May. The mission of the Housing Affordability Institute is to examine and propose solutions to the burdens government places on housing affordability and the housing industry. Much of the institute’s work will be done through the development of policy white papers and getting involved in housing affordability court cases, like the Harstad v. Woodbury case currently before the Minnesota Supreme Court. “The Harstad v. Woodbury case has demonstrated the need for a strong legal defense program anchored in sound

housing policy focused on affordability,” said David Siegel, executive director of Housing First Minnesota. “Forming the Housing Affordability Institute as an independent offshoot of our advocacy program allows the entire industry to benefit from its work.” A steering committee, comprised of appointed longtime housing industry leaders, directs the activities of the Housing Affordability Institute. This committee is chaired by Jason McCarty of Westwood Professional Services and also includes John Anue of Lennar, Pam Belz of Presbyterian Homes, Ed Englebrecht of Pella Windows and Frank Kottschade of North American Realty. For more information about Housing Affordability Institute, HousingAffordabilityInstitute.org.

the visit

New construction stormwater permit starts Aug. 1.

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Gov. Dayton’s Housing Affordability Task Force Nears Completion After five months of work, Gov. Mark Dayton’s Task Force on Housing has begun the process of drafting its report and recommendations. The task force, announced in December 2017, has been meeting monthly to discuss how Minnesota can address its housing affordability challenges. As the topic of increased affordability encompasses the entire housing market, the task force has broken into three distinct work groups to examine specific areas of interest: homeownership, rental housing and housing stability. The 28-member task force is predominately made up of elected officials and groups that provide some type of housing assistance. One REALTOR, Richelle Taylor of RE/MAX and one home builder, Mike Paradise of Rochester, were appointed to the task force. Housing Group Submits Proposal

Governor’s task force final recommendations to be released in July 2018.

Housing First Minnesota responded to the task force’s call for ideas in March by submitting a report titled Solutions to The High Cost of Housing in Minnesota. The

report outlines two barriers to housing affordability in Minnesota: • An increasing regulatory burden • The industry-wide labor crisis, both of which are adding to the state’s housing supply issues. As a solution to rising regulatory costs, Housing First Minnesota pointed to HF 3044/SF 2567, a bill which would allow legislative review of housing regulations that cost homeowners $1,000 or more. To aid publicly-funded affordable housing projects, Housing First Minnesota proposed allowing cities to exempt these projects from local fees. As for the industry-wide labor crisis, Housing First Minnesota said funding for Project Build Minnesota’s efforts would help attract more workers. The Minnesota Association of REALTORS also responded, recommending the state strengthen the First-Time Homebuyer’s Savings Account the Legislature created last year as well as increasing

homeownership tax incentives. The REALTORS also presented at a meeting of the Homeownership Work Group and stressed the importance of regulatory reform in addition to strengthening the First-Time Homebuyer’s Savings Account. Final Report Being Prepared The Homeownership Work Group reviewed its draft recommendations for the task force’s final report at its May 9 meeting. The ideas the work group will propose are centered around seven categories, which includes expanding existing homebuyer programs and identifying ways to reduce construction costs. The specific suggestions are to general to increase affordability in Minnesota, says Housing First Minnesota’s regulatory affairs manager, Nick Erickson. “As far as the Homeownership Work Group goes, their recommendations seem quite broad and will have little to no effect on the state’s housing affordability challenges,”

said Erickson, who has monitored the task force for Housing First Minnesota. Housing First Minnesota isn’t alone in believing the task force’s recommendations may fall short. During a presentation at the task force’s April full group meeting, guest speaker David Smith told the task force that, based on his conversation with task force members, its recommendations do little to address the cause of Minnesota’s housing affordability problem: the lack of supply. Smith, who has worked globally on affordable housing policy, stressed the importance of focusing on recommendations that increase housing supply across Minnesota. He also cautioned against recommending rent control as a solution, saying that while it will keep rent low, the policy has proven to decrease the quality of rental units. The final report is scheduled to be released in July 2018. Learn more at MNHousingtaskforce.com.

Regulatory Affairs Roundup: MnDOT Restrictions, Lead Paint, OSHA Injury Reporting Deadline, Water Rule Change Delay MnDOT Spring Load Restrictions The Minnesota Department of Transportation’s (MnDOT) spring load restrictions caused headaches for builders and developers. Spring load restrictions, which bar heavy trucks from state trunk highways, are meant to protect these roads from damage during the spring thaw. Local governments often adopt MnDOT’s spring load restrictions in order to protect county, city and townships roads. The spring load restrictions went into effect in early March for the southern third of the state and in mid-March for the northern two-thirds of Minnesota. MnDOT has an eight-week maximum timeframe for spring load restrictions. Spring load restrictions in the Southwest and Metro frost zones were lifted on April 30, the South frost zone on May 1, the Central frost zone on May 11, the North Central frost zone on May 16 and North frost zone on May 17. Federal Lead Paint (RRP) Rule Remains Unchanged A report from the Environmental Protection Agency (EPA) recommends no changes to its lead paint (RRP) rule. Lead paint, banned in 1977, can be found in many pre-1978 homes. The EPA RRP Rule outlines safe

workplace practices and procedures for remodeling of pre-1978 homes to limit both worker and occupant exposure to lead paint and lead dust. Exposure to lead and lead-based paint can cause a variety of health concerns, including cognitive impairment and developmental problems in children. Although no changes were recommended, the EPA review noted one of the biggest complaints from remodelers: the lack of affordable and accurate test kits. In addition to this review, the Ninth District Federal Court ordered the EPA to revise the rule in December 2017, saying the EPA needed to recommend a change to its lead dust standard by March 27 and issued a 90-day extension on March 26. The EPA Inspector General is also reviewing the enforcement and implementation of the EPA RRP Rule. The Minnesota Department of Health (MDH) is considering proposing its own RRP Rule in Minnesota, which could be affected by any changes at the Federal level. Initial drafts of Minnesota rules would have increased remodeling costs across the state and Housing First Minnesota led the charge to ensure that remodeling remains affordable should the state enact its own RRP Rule. OHSA Injury Reports Due July 1 In

April,

OSHA

released

additional information on safety data employers are required to submit electronically, fixing an error with a recently-enacted Federal rule. MNOSHA, administered by DLI, is in the process of adopting this Federal regulation and all employers with 20 or more employees will be required to submit their data on workplace injuries and illnesses in 2017 by July 1. Beginning in 2019, workplace injuries and illnesses for the previous year must be submitted by March 2. Water of the United States Update The EPA is planning on releasing an updated “Waters of the United States” (WOTUS) definition in August. WOTUS, enacted in 2015, gives the EPA and the Army Corps of Engineers the ability to protect “navigable waterways,” the effect of which has been delayed and costly federal permits to build or modify lands near covered waterways. The main criticism of the WOTUS rule is that it includes an expanded definition of federally-regulated waters far beyond the waters the rule was intended to protect, including canals, collection ponds, ditches and isolated wetlands. Experts expect the new definition to be narrower, reducing the number of projects requiring a Federal permit.

MnDOT road restrictions cause headaches.

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Housing theTHE Capitol HOUSINGatON HILL

Legislature Adjourns: Two Housing Issues Elevated

L to R: David Siegel (Housing First Minnesota executive director) testifies at the House Jobs Committee on behalf of housing affordability, Lowel Pratt (Pratt Homes) and David Siegel join Senator Rich Draheim in discussing the construction workforce shortage with the Senate Jobs Committee.

Following a historic 2017 session for housing, Housing First Minnesota entered the 2018 session poised to continue the housing affordability discussion in St. Paul. “There are two major challenges facing the housing industry and our capacity to build homes at prices Minnesotans can afford, regulatory costs and work force pressures. Both of these were elevated and discussed at the legislature in a capacity that we had never seen before,” said

David Siegel, executive director of Housing First Minnesota Housing First Minnesota worked throughout the session to defend the industry against harmful proposed legislation and proposed two initiatives that would positively impact housing. The first proposal covers the labor crisis which is discussed on a daily basis in the housing industry. Housing First Minnesota led the charge in promoting the opportunities available within the industry.

The second initiative focuses on the fact that nearly one-third of the price of a new home can be attributed to local, regional and state regulatory costs. Once again, the legislature discussed the need to find the balance of safety, durability and affordability. Siegel spoke in committee at the Capitol on Feb. 28. “One question that consistently comes up during discussion on affordable housing is ‘Why aren’t we building enough affordable

homes?’ And the answer is simple: Building new entry-level homes that the average Minnesota family can afford is becoming increasingly difficult,” he said.

You can continue the conversations by following our social media @HousingFirstMN on Twitter and Housing First Minnesota on Facebook.

“Are we serving our young people by not sharing the opportunities in the trades where they can earn a great living? We owe it to them to share all career paths.” Lowell Pratt, PRATT HOMES

Minnesota Becomes Center of 2018 Elections If you don’t like political ads, you may not want to get your mail or watch television for the next five months. That’s because no matter where you live in Minnesota, you are likely in a competitive district. Between two U.S. Senate seats, eight U.S. House seats, the Governor’s mansion, all Minnesota constitutional offices, the entirety of

the Minnesota House and a special election to decide the majority of the Minnesota Senate, voters will have a lengthy ballot this November. It is set to be one of the most intense election seasons we’ve ever seen. Here’s a breakdown of our 2018 elections by the numbers.

2018 Elections by the Numbers STATE ELECTIONS

4 134 1

Statewide State Government Elections Governor / Lt. Governor*, Attorney General*, Secretary of State, State Auditor* (*OPEN SEAT)

TRACK THE CONVERSATION ON TWITTER: @housingﬁrstmn #MNHomeownership 6|

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Open House Seats

FEDERAL ELECTIONS

2 8

United States Senators One Six-Year Term One Two-Year Term

United States House of Representatives

State Senate Special Election

Replacing Lt. Governor Michelle Fischbach

Rep. Bob Vogel Discusses Housing Regulation Reform Q: Minnesota is experiencing a housing affordability crisis. Why did you author HF3044 to help address the regulatory burdens facing homebuyers?

Rep. Vogel: I realize there are many factors driving the cost increases, and although regulations at the state level are only part of those drivers, they play a significant part. The bill introduced this year was revised from the previous one HF1001, because there was so much pushback by state regulatory agencies saying the legislature should not have a major part with writing regulations and rules. With the hope of overcoming those objections HF 3044 put more emphasis on breaking down silos between agencies by using an overall net effect of cost increase, and then only notifying the legislature of changes if they were over a the threshold. The hope was by addressing some of the previous year’s concerns the governor would then be able to support the bill. Unfortunately, the agencies still opposed the changes so the effort to build partnerships between agencies to better control costs and get them working together more closely needs to continue.

more resourceful in looking at what regulation is necessary, and the manner by which it is driven. The basic scientific rule of “for every action there is a reaction”, applies in many ways to life actions. What seems to be missing in all levels of government rule, regulation, and fee making is there is a lack of understanding that there is no free lunch. Whether it’s regulation or fees/ charges everything is added to the cost of a home, and the homeowner pays for it. Elected officials need to look at the cost/benefit of everything that touches a family when they are looking to have a home, and ensure those they give the authority

to in implementing the statutes and ordinances they pass act consistent with the homeowners overall best interest. Q: As a banker by day, what changes have you observed over the years with the home buying process?

Rep. Vogel: I believe the cumulative effect of regulations overall, from both a construction and financing perspective, have taken away the creativity which existed years ago in allowing families to work in partnership with everyone involved in the home ownership process. I recognize some of the regulation was driven by “bad players” in the different

industries in homebuilding. Unfortunately, in a well intended effort to protect families from those abuses the overwhelming majority of good players have lost the flexibility and individualized teamwork they had, and now it seems too much time is spent on dealing with regulatory issues versus finding the best solution for the homeowners. Q: Any additional comments?

Rep. Vogel: When my wife and I started out we rented an apartment for a few years and saved enough for a down payment on a small house. We spent a few years making improvements which allowed us to take

Q: How else can the legislature play a role in addressing housing affordability and issues facing ﬁrst-time homebuyers?

the “sweat equity”, and some modest inflationary appreciation, to build a new larger home. I spent most of the summer of 1980 working on parts

“$1,000 may not sound like a lot of money, but for every $1,000 increase in the price of a home, 4,000 Minnesotans are priced out of the market.” Rep. Bob Vogel of that home, in tandem with the contractor, to get as much house as we could for the money we had to spend. With all the changes in today’s environment I don’t think what we did would be possible, since the additional costs of fees and charges, as well as regulations, probably would have precluded me from doing a lot of the work I did, or would not be allowed. We are still living in the home we built in 1980, and have not experienced any significant problems or deficiencies. I know we need a framework to protect us from unscrupulous players, but we must balance that with taking away people’s rights to provide homes for their families because that freedom in 1980 allowed us as a family to build and enjoy a house that continues to be our home.

Rep. Vogel: I think we need to be Rep. Bob Vogel (Elko New Market) speaks on the ﬂoor of the Minnesota House of Representatives.

SOURCE: MN HOUSE OF REPRESENTATIVES

LET YOUR VOICE BE HEARD • SAVE THE DATE: FEBRUARY 2019

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HOUSING ON THE HILL

Housing First Minnesota Honors Legislators 28 Receive Housing Leadership Award Housing First Minnesota, the state’s leading voice for home builders and remodelers, has recognized 28 Minnesota Legislators as recipients of the 2018 Housing Leadership Awards. The award recognizes legislators for their efforts throughout the 2018 legislative session to promote homeownership at a price that families can afford.

2018

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

Representative Regina Barr

Representative Kurt Daudt

Representative Pat Garofalo

Representative Jon Koznick

Representative Sandy Layman

Representative Eric Lucero

Representative Paul Marquart

Representative Jim Nash

Representative Anne Neu

Representative Roz Peterson

Representative Dennis Smith

Representative Tama Theis

Representative Bob Vogel

Senator Paul Anderson

Senator Tom Bakk

Senator Rich Draheim

Senator Michelle Fischbach

Senator Melisa Franzen

Senator Paul Gazelka

Senator Mike Goggin

Senator Karin Housley

Senator John Jasinski

Senator Mary Kiffmeyer

Senator Warren Limmer

Senator Matt Little

Senator Jerry Relph

Senator Bill Weber

Senator Torrey Westrom

Recipients of the Housing First Minnesota 2018 Housing Leadership Awards: Minnesota House of Representatives • • • • • • • • • • • • •

Representative Regina Barr (Inver Grove Heights) Representative Kurt Daudt (Crown) Representative Pat Garofalo (Farmington) Representative Jon Koznick (Lakeville) Representative Sandy Layman (Cohasset) Representative Eric Lucero (Dayton) Representative Paul Marquart (Dilworth) Representative Jim Nash (Waconia) Representative Anne Neu (North Branch) 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 (Madison Lake) • Senator Michelle Fischbach (Paynesville) • Senator Melisa Franzen (Edina) • Senator Paul Gazelka (Brainerd) • Senator Mike Goggin (Red Wing) • Senator Karin Housley (Stillwater) • Senator John Jasinski (Faribault) • Senator Mary Kiffmeyer (Big Lake) • Senator Warren Limmer (Maple Grove) • Senator Matt Little (Lakeville) • Senator Jerry Relph (St. Cloud) • Senator Bill Weber (Luverne) • Senator Torrey Westrom (Elbow Lake)

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HOUSING INDUSTRY NEWS

An Economist’s Take on Lumber Prices and Tarrifs By ELLIOT EISENBERG GraphsandLaughs, LLC Elliot@graphsandlaughs.net

Lumber prices have soared to new heights this year. Futures rose to $619 per 1,000 board feet on the Chicago Board of Trade. They’ve surged 66 percent in the past 12 months, a bigger gain than any of

the raw materials tracked by the Bloomberg Commodity Index. Lumber prices picked up steam after the U.S. in November imposed average import duties of 21 percent on Canadian shipments of timber following a years-long trade dispute. While the move supports U.S. producers, it’s bad news for domestic builders. Economist Elliot Eisenberg believes the issue will only get worse as we keep building more homes. “The US produces roughly 33 million board feet of lumber but we consume about 47 million board feet of lumber. The gap of about 15 million board feet is imported,” said Eisenberg. “The tariffs on soft wood lumber that the U.S. imposed hurt.” Making things worse, the new

MARKET REPORT

LUMBER PRICES SURGE 66 PERCENT

tariffs on steel and aluminum are expected to only add to the problem. “It could get bad for two reasons. One, steel and aluminum are sometimes substitutes for wood, but now they are also more expensive. That keeps lumber prices high,” said Eisenberg. “The second reason is that there are few alternatives to wood or aluminum for home building. So, small increases in demand could seriously push up prices.” The good news. Eisenberg believes in the short run, with a strong economy and good job growth, the impacts are likely to be small as homebuyers are willing to pay more. Eisenberg’s biggest concern is that fewer houses get built as a result of this and that just exacerbates the continued underbuilding problem.

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MARKET REPORT

A Hot Selling Season: Price Appreciation Continues With the spring selling season wrapping up, 2018 housing market trends are emerging. According to Ali Wolf, the Meyers Research director of economic research, for the most part, the housing market has been trending positively. “Even with this rise in housing costs, home sales are resilient. Purchase mortgage applications, our preferred gauge of home sales, grew

6 percent year-to-date compared to the same time last year,” said Wolf. Mortgage rates remain historically low at 4.58 percent. The median new home price rose 6 percent yearto-date this year compared to the same time last year. With the combination of rising mortgage rates and price, the monthly payment for the median priced new home is seven percent higher than 2017.

4.58%

For the 73rd consecutive month median existing home prices have recorded year-over-year gains.

HISTORICALLY LOW

2018 MORTGAGE RATE

SOURCE: PUBLIC RECORD DATA; ZONDA BY MEYERS RESEARCH

Homeownership Is the Biggest Driver of Household Wealth in the United States Americans recorded a record-high of $14.4 trillion of equity in their homes in the fourth quarter of 2017. New research shows a household’s primary residence is its largest asset and continues to provide an important building block for long-term financial security. The latest edition of the Survey of Consumer Finances, published by the Board of Governors of the Federal Reserve System, reports that the primary residence accounts for about one-quarter of all assets held by households in 2016, ahead of other financial assets, business interests and retirement accounts. “Homeownership is a primary source of wealth for many Minnesotans, and is an important step in accumulating personal financial growth,” said Tom Wiener, president of Housing First Minnesota. Building equity and accruing wealth when the value of your

home appreciates are among the longer-term financial benefits of homeownership. Minnesotans are ahead of the nation when it comes to owning a home. With a homeownership rate of 72.8 percent Minnesota has the third highest homeownership rate in the nation. But that’s down from 74.5 percent in 2000 and it continues to drop. “We are facing a serious housing crisis as many first-time homebuyers simply cannot get into a home,” said Wiener. “We must continue to address the obstacles that many potential homebuyers face, including the factors that increase the cost to build new homes.” The national homeownership rate of 64.2 percent has seen some recent growth, up .6 percent year-over-year.

64.2% 72.8%

SOURCE: U.S. BUREAU OF THE CENSUS, CLARITAS, ZONDA BY MEYERS RESEARCH

64.2%

MINNESOTA HOMEOWNERSHIP RATE (UPDATED 2017)

72.8%

UNITED STATES HOMEOWNERSHIP RATE (UPDATED APRIL 2018)

64.2%

SOURCE: U.S. BUREAU OF THE CENSUS, CLARITAS, ZONDA BY MEYERS RESEARCH, MOODY’S ANALYTICS

SOURCE: U.S. CENSUS BUREAU, MOODY’S ANALYTICS; ZONDA BY MEYERS RESEARCH

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HOUSING INDUSTRY NEWS

Housing Market Report Year-To-Date SingleFamily Construction in Select Cities

State of Minnesota

Moorhead

The Minnesota housing market continues to see a concerning lack of inventory. During the month of April, there were about half as many houses on the market in the Twin Cities metro area than there were six years ago. Home builders are struggling to make up for the lack of supply. The combination of a shortage of inexpensive land, increased regulatory burden and lack of skilled labor has curbed construction. Tom Wiener, president of Housing First Minnesota, also attributed the declines to a long winter that’s created less than ideal conditions. “This does not help the housing supply issue we have in Minnesota,” he said in a statement.

SOURCE: CITY OF MOORHEAD

3,385

Duluth

2018 SingleMankato Family Permits

SOURCE: US CENSUS

St. Cloud

SOURCE: CENTRAL MINNESOTA BUILDERS ASSOCIATION

Twin Cities

2,516 110

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

Mankato

SOURCE: US CENSUS

Rochester

SOURCE: US CENSUS

APR. 2018

$266,000 +8.6% Y-Y Change

$240,000 +7.9%

APR. 2017

Y-Y Change

$245,000

APR. 2017

$222,500

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

Minnesota Construction Employment Past 5 Months SOURCE: DEED

2017

$245,000

$222,500

Twin Cities Median Sales Price

Minnesota Median Sales Price

SOURCE: MINNEAPOLIS REALTORS

SOURCE: MINNESOTA REALTORS

Twin Cities Construction Employment Past 5 Months

United States

West - 57

South - 57

SOURCE: DEED

Midwest - 54

Northeast - 60

Regional Remodeling Market Indicies, 2018 Q1 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. SIGN UP TO BE A PART OF THE HOUSING MOVEMENT • HOUSINGFIRSTMN.ORG

Minnesota residential construction added 219 jobs in April 2018. That’s down 106 jobs from April of last year. With the ongoing labor shortage, skyrocketing input costs including lumber, aluminum, and rising land costs, economists predict single-family housing starts will rise by no more than five percent over the next 12 months HOUSING INDUSTRY NEWS

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MARKET REPORT

Remodeling Index Hits New High The Residential Remodeling Index (RRI) released by Metrostudy hit 112.9 in the first quarter of 2018, its highest reading ever. The new high index means the economic conditions that influence remodeling activity are 12.9 percent better than the previous peak in early 2007, just before the Great Recession.

“We expect another strong year for the remodeling industry in 2018, and are waiting to see what effect recent tax cuts have on the economy.” Mark Boud, CHIEF ECONOMIST AT METROSTUDY

SOURCE: METROSTUDY

PROJECTED

“Remodeling activity is being driven by solid gains in employment and rising home values, factors that are giving homeowners the confidence

to invest in their homes,” said Mark Boud, chief economist at Metrostudy. The RRI has now experienced 24 consecutive quarters of year-over-year gains since the bottom of remodeling activity in 2011. The RRI is now forecast to average year-over-year gains of 5.1 percent throughout 2018, followed by 2.7 percent in 2019, and continue reaching new highs through 2020. “We expect another strong year for the remodeling industry in 2018, and are waiting to see what effect recent tax cuts have on the economy,” said Boud. “Early surveys suggest some Americans are increasing their remodeling budgets due to their taxes being lowered.” The RRI is a quarterly measure of the level of remodeling activity in 381 metropolitan statistical areas (MSA) in the U.S., with the national composite reflecting the national level of activity.

Home Inventory Reaches 20-Year Low Inventory of all homes for sale in the U.S. is at a 20-year low. Economists have been calling for newhome construction to help make up the shortfall in the market. Yet, the months of new home inventory in Minnesota continues to drop, falling another 2.1 percent in May. For now, it looks as if the housing shortage is here to stay as builders cannot get new projects in the pipeline fast enough to make a real dent in the supply issue. The top cities in Minnesota for active new home projects through

the month of April were Woodbury with 29 active projects, Plymouth with 25, Lakeville with 23, Lake Elmo with 19, and Prior Lake with 19 active projects. Months of new home inventory is calculated with the current total remaining units at active new home projects divided by the sum of the average sales rate for the last 12 months for all active projects. Get Housing Industry News as it happens: Sign up at HousingFirstMN.org Follow us on Twitter @housingfirstmn SOURCE: ZONDA

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HOUSING INDUSTRY NEWS

KORI MEEWES

BRAD MEEWES

612-801-9874 kori@batc.org

651-269-2399 brad@batc.org

Builders and Remodelers Show (BRS) Brings the Industry Together This year’s Builders and Remodelers Show (BRS) attracted more than 725 attendees to see the latest products and services from 217 exhibitors at the Minneapolis Convention Center. The annual trade show invites builders, remodelers, interior designers and building officials from across Minnesota to connect with partners in the industry and find the latest products and services in residential construction.

“We always love to stay on top of new product offerings and educational opportunities to pass on to our clients.” Lisa Spriggs, M & J CONSTRUCTION

“We traveled from the Fargo-Moorhead area,” said Lisa Spriggs of M & J Construction. “We always love to stay on top of the new product offerings and educational opportunities to pass on to our clients. What a fun and exciting group of people and vendors!” This year’s show featured an updated floor plan, an all new interactive site and education sessions. Plus, more than 50 exhibitors showcased

INDUSTRY IN ACTION

products as a part of the 2018 New Reveal. “Being directly involved in the purchasing decisions for our company, BRS is a great opportunity to not only socialize personally with associates in the industry, but also to see innovative new products and establish new connections – both of which are very important to me,” said Lucas Dose, a BRS attendee and estimating/purchasing for JMS Custom Homes. Not only is BRS a great was to see and showcase the latest products and services, but it also provides a relaxed atmosphere filled with positive energy for both attendees and exhibitors. “Everyone’s really excited about the industry,” said Lynn Dale, Minnesota Tile & Stone’s marketing and merchandising manager and an exhibitor at the show. “The builders are busy, so that makes us happy!” Three awards were given out at this year’s show. The best booth overall went to Minnesota Tile & Stone, the best booth runner-up went to Schluter Systems, and the best new product/service award went to Mingle for their weatherproof cabinetry. Next year’s show will take place February 13, 2019 at the Minneapolis Convention Center. More than 725 attended the Builders and Remodelers Show (BRS).

ARE YOU MAKING A DIFFERENCE IN YOUR COMMUNITY? We’d love to highlight your community service project in Housing Industry News. Send your story to info@housingﬁrstmn.org.

More than 200 exhibitors shared the latest in new products and services.

HOUSING INDUSTRY NEWS

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Housing News at a Glance Development News Across the State More High-End Homes for the East Metro The east metro is looking to grab a bigger share of the luxury home market. Until now a majority of the multimillion-dollar homes sales were found in the west metro. That could soon change. With the opening of the Royal Golf Club in the redeveloped version of the former Tartan Park, the construction of dozens of multimillion dollar homes along the fairway has begun. With that comes a 292lot companion development where homes start at about $700,000. Six custom builders began taking reservations from clients in 2017 and have sold about 80 percent of the first 73 lots available for fullsize single-family homes and villas, the latter smaller homes designed for empty nesters. Builders held a launch party for phase two earlier this month. Hanover Ready to Grow Hanover is poised for its first

major residential development in years. Champlin-based Backes Development LLC is looking for final approval in June for a development that would bring 159 new single-family homes to a 72-acre site in the city of about 3,300 residents. Known as Crow River Heights, the development located at 9991 Beebe Lake Road NE, is expected to proceed in phases over the next five to six years with about 30 lots per year. Hanover City Planner Cindy Nash told Finance and Commerce the plans are tentatively scheduled to go before the City Council on June 5. New Lots For Prior Lake A new development approved by the Prior Lake City Council will bring 55 additional single-family homes to Prior Lake. The development, called Parkhaven at Pike Lake, will be built on 44.6 acres north of County Highway 42, east of County Highway 21 and west of

Pike Lake in Prior Lake, according to city documents. Lot sizes will range from 8,400 square feet to more than 14,000 square feet, according to city documents. A home builder has not yet been chosen by the developer. New Single-Family Homes Planned in Baytown Township A 223-acre farm site could soon be 115 new single-family homes in Baytown Township. The land is in the northwest corner of Osgood Avenue and 47th Street just south of Oak Park Heights and west of Bayport. The project is undergoing environmental review and is expected to be up for preliminary plat approval early this summer. Construction would play out in phases through 2022. The development would be the biggest in the township since 2007.

Home rendering from The Royal Club website.

Building Industry Gives Big at Hearts in Housing Gala The BATC-Housing First Minnesota Foundation held its 2018 Hearts in Housing Gala at the JW Marriott Minneapolis Mall of America on April 21. In its third year, the Gala continued to grow with more than 550 attendees showing up to support the work of the foundation. Attendees embraced the Derby theme and showed how much this industry cares about giving back to our communities. More than $200,000 was raised for the foundation during the event. The silent auction had more than 115 items that were generously donated by community members. There were sports tickets, chef experiences, kitchen gadgets, golf packages and much more.

“It’s just an honor to work with our veterans. It’s an honor to build homes for people that need them.” Andrew Hartmann, LENNAR

2017 Build Partners and Award Recipients Honored by the Foundation Three Hearts in Housing awards were given to companies and individuals who went above and beyond in their support of the Foundation. This year’s Hearts in Housing award recipients were: • Tim Hassett of Felhaber Larson • Lennar • Lyman Companies “To give back to the community is a huge thing,” said John Zirbes, Lyman Companies. “It makes us feel good about being in the industry.” Five 2017 build partners were also recognized for their significant contributions to projects in 2017. • Ispiri, LLC • Minnesota Design & Construction, Inc. • Contract Interiors, Inc. • Minnesota Rusco, Inc. • Lennar To ﬁnd out how your company can support the BATC-Housing First Minnesota Foundation or become a Build Partner, contact Shelly Barrett at Shelly@BATC.org.

You can continue the conversations by following our social media @HousingFirstMN on Twitter and Housing First Minnesota on Facebook.

More than 550 attendees embraced the Derby theme at the 2018 Hearts in Housing Gala.

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HOUSING INDUSTRY NEWS

INDUSTRY GIVES BACK M I N N E S O T A

HOUSING INDUSTRY NEWS June 2018, Volume 2, Issue 2 PUBLISHER David Siegel David@HousingFirstMN.org EDITOR Katie Elfstrom Katie@HousingFirstMN.org GRAPHIC DESIGN Dawnita Parmely Caroline Ellingboe Shields Hannah Swan Adora Vang ACCOUNTING Janice Meyer CONTRIBUTING WRITERS Katie Elfstrom Katie@HousingFirstMN.org

Nick Erickson Nick@HousingFirstMN.org

Mark Foster Mark@HousingFirstMN.org

David Siegel

Four Apartments in Four Days for Avivo Four Avivo residents came home to brand new apartments in May thanks to the BATC-Housing First Minnesota Foundation/HomeAid Twin Cities and build partner Soderberg Apartment Specialists.

“The quality of this renovation elevates our apartment homes to an entirely different level. These homes will help increase the wellness of the families we serve as we provide housing that’s critical for mothers to succeed at recovery.”

entirely different level,” said Kelly Matter, Avivo president & CEO. “These homes will help increase the wellness of the families we serve as we provide housing that’s critical for mothers to succeed at recovery.” After some initial demolition, Soderberg Apartment Specialists and their trade partners completed a four-day building blitz in May. Each unit received new cabinets, lighting, flooring, trim, fresh paint and fully remodeled bathrooms. The foundation helped Avivo remodel the four lower units in the apartment building earlier this year with the help of build partners Crystal Kitchens and The Kingdom Builders.

Kelly Matter,

AVIVO PRESIDENT & CEO

David@HousingFirstMN.org

James Vagle

James@HousingFirstMN.org

ADMINISTRATIVE STAFF Kate Wigley Kate@HousingFirstMN.org

Housing First Minnesota David Siegel, Executive Director Tom Wiener, President The Housing Industry News is a publication of Housing First Minnesota. 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 Entire contents copyright 2018 All rights reserved

“We thought we would potentially help Avivo renovate these units next year, but then Soderberg Apartment Specialists stepped up and said they could get it done in just four days,” said Bob Bennett, BATC-Housing First Minnesota Foundation manager. “We are thrilled that we will be able to do this for the residents that are living in these units.” Avivo is the only program in Minnesota that houses women and their children while they go through treatment. “The quality of this renovation elevates our apartment homes to an Newly remodeled bathroom.

Top to Bottom: Trade partners enjoyed special t-shirts; Rep. Dean Urdahl (Grove City, Chair of Capital Investment Committee) and Avivo’s Kelly Matter speak at key ceremony; kitchen received new appliances and cabinetry.

Second Home for MACV Underway The BATC-Housing First Minnesota Foundation/HomeAid Twin Cities along with build partner Lennar kicked off the construction of a home to be donated to Minnesota Assistance Council for Veterans (MACV) with a special groundbreaking in April. Organization leaders and elected officials joined together to celebrate the construction of the new home in Maplewood, the second the foundation is building for MACV. “This home will help MACV fill an incredible need,” said Neal Loidolt, MACV. “We can’t thank the

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 features a modern, comprehensive advocacy program that is dedicated to helping industry professionals grow their businesses. 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.

BATC-Housing First Minnesota Foundation enough.” The Maplewood lot for this home was donated by the Minneapolis Area Association of REALTORS® Foundation. The five-bedroom home will be used by MACV to house homeless female veterans, a population of the community that MACV says is in growing need. The home is scheduled to be completed in August. Lennar helped the BATC-Housing First Minnesota Foundation complete a home for MACV last year that went toward helping homeless veterans.

Our advocacy work has never been more important. The housing industry remains under intense regulatory and political 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. Bill Burgess (left) of Lennar and Neal Loidolt of MACV at house groundbreaking.

The home is scheduled to be completed in August.

HOUSING INDUSTRY NEWS

| 15

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