Housing Industry News Vol. 2 Issue 1 - March 2018 by Housing First Minnesota

M I N N E S O T A

HOUSING INDUSTRY NEWS

INSIDE Behind the Scenes: New Building Codes Take Shape

[PG. 5]

Twin Cities’ Top 25 Builders in 2017 [PG. 12]

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

VOL. 2 ISSUE 1, MAR. 2018

Housing Industry Seeks Legislative Action Housing First Minnesota Discusses Workforce and Regulations

David Siegel, Housing First Minnesota, testifies before the Senate Agriculture, Rural Development and Housing Finance Committee.

As the legislature moves into the bulk of its 2018 session work, several housing measures are among the leading topics under consideration. Housing First Minnesota has prioritized housing affordability and construction workforce development as the two leading issues impacting the industry. To address these, housing industry bills are moving through both legislative chambers as the session approaches its mid-point. In an early March hearing, Housing First Minnesota President Tom Wiener testified on SF 2567/HF 3044 (Sen. Kiffmeyer, Big Lake/Rep. Vogel, Elko New Market). “As a builder for several decades, I can tell you that the recent acceleration of regulatory rules and requirements has had a major impact on our industry and ultimately on my

ability to build affordable homes,” said Wiener, owner of Cardinal Homebuilders, Inc. The Kiffmeyer/Vogel regulatory legislation would create a means for legislative oversight on housing related regulations being created by the host of state-level departments, such as the building code and construction storm water permit. As introduced, the legislature could elect to conduct hearings and oversight on proposed changes to these regulations if they impact the projected costs for homeowners by $1,000 or more. Industry leaders say that the regulatory pressures on Minnesota homeowners are matched by an equal and pressing need to grow the housing construction workforce. To address this, SF 3810/HF 3430 (Sen. Draheim, Madison Lake/Rep. Barr, Inver Grove Heights) have introduced legislation

that would appropriate state funds to Project Build Minnesota, a newly formed non-profit that focuses on raising awareness of opportunities in the construction industry among students, parents and educators. Project Build Minnesota enters a critical phase of its growth plan in 2018, which would be elevated substantially with a legislative appropriation. “We need to reinvent how today’s youth view the construction trades, which is why we’ve come together to form Project Build Minnesota, an organization dedicated to motivating our youth to learn more about the many benefits of pursuing a career in the building industry,” said David Siegel, Project Build Minnesota board member and Housing First Minnesota executive director.

“We need to reinvent how today’s youth view the construction trades, which is why we’ve come together to form Project Build Minnesota.” David Siegel, PROJECT BUILD MINNESOTA BOARD MEMBER, HOUSING FIRST MINNESOTA EXECUTIVE DIRECTOR These priorities will become part of a larger legislative discussion surrounding the topline issues, like state borrowing for capital projects, fixes for elder care, the state vehicle registration system and perhaps the most complex, conformity with the federal tax bill. The legislature has a constitutional deadline for adjournment on May 21, 2018.

Workforce Crisis Takes Center Stage at Housing Day at the Capitol 2960 Centre Pointe Drive Roseville, MN 55113 HousingFirstMN.org

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One of the biggest obstacles facing the housing and construction industries is the workforce shortage, with more than 80 percent of employers reporting a deficit of skilled labor. As Housing First Minnesota and the Minnesota

REALTORS® hosted the second annual Housing Day at the Capitol this March, the shortage of skilled workers dominated the conversation. Hundreds of housing industry CONTINUED >> PAGE 3

HOUSING INDUSTRY NEWS

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Bringing the Industry Together By TOM WIENER Housing First Minnesota tom@cardinalhomebuilders.com

The housing industry is one of the largest industries in our state and nation, driving over 15 percent of the economy. Only healthcare has a bigger footprint in the economy. Our work building, developing, remodeling, selling and maintaining homes has a tremendous impact on local communities that begins with the families that live in our homes and stretches to all corners of our economy. As an industry, we know that there are a few key challenges that must be addressed. We know that the regulatory costs associated with building and remodeling homes has ballooned to a point where entry level homes have become scarce. Labor pressures are impacting the industry today as we lack adequate

workforce depth to meet consumer demand. We also know that the changing landscape in the tax code will impact homeownership, which has traditionally been encouraged by our federal tax structure. To address these growing challenges, I’m emphasizing collaboration and connectivity across the housing industry in Minnesota this year. I believe that there is great strength in numbers and that our industry could benefit from greater collaboration. A great example of this was our recent success at Housing Day at the Capitol working with the Minnesota REALTORS. Building upon our success last year, together we brought hundreds of housing industry professionals to the Capitol to talk with our elected leaders about our ideas to boost housing affordability for Minnesota. Our reception by legislators was outstanding

and confirmed that our industry is a leading priority for every district in the state.

“To address these growing challenges, I’m emphasizing collaboration and connectivity across the housing industry in Minnesota this year.” As you read this issue of Housing Industry News, I’m hopeful that you’ll find the information timely and valuable. Housing First Minnesota is leading the housing movement in Minnesota, and it will take all of us in the industry to ensure that we have a strong industry to serve the families of our great state both now and in the future. Tom Wiener, president, Housing First Minnesota and Cardinal Homebuilders, Inc.

Project Build Minnesota Launches Construction Workforce Initiative

POST JOBS FOR FREE JOIN THE SPEAKERS BUREAU MAKE A CONTRIBUTION GET INVOLVED

projectbuildmn.org 2|

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The residential construction workforce shortage has reached critical levels throughout Minnesota. In response, Housing First Minnesota has taken a leadership role in the development of Project Build Minnesota, a newly formed nonprofit dedicated to broadly sharing career opportunities in the construction field and creating a movement to return Minnesota’s culture to one that appreciates craftsmanship and labor. Project Build Minnesota is centered around a growing website at www.projectbuildmn.org. The site describes a wide array of careers in construction, highlights expected compensation, and covers the necessary expertise and training for the positions. The site launched last year, and Project Build Minnesota continues to enhance it. “Our goal is to make it perfectly clear to youth ages 16-22, their parents, school administrators and faculty, counselors and policy makers that construction offers a great career path,” said David Siegel, executive director of Housing First Minnesota and chair of the Project Build Minnesota marketing committee. “Once you come to our site, you know exactly what steps to take next to get where you want to go.” Now that phase one of the site is developed, the marketing committee is focused on implementing a detailed plan to drive traffic and spread the word. In addition to the website, Project Build Minnesota has been conducting outreach through conferences and meetings. Project Build Minnesota exhibited at the Minnesota

School Boards Association conference, the Minnesota Association of Secondary School Administrators, the Northwest Lumber Association show, and it will have a booth at the Housing First Minnesota Builders and Remodelers Show and the Minnesota School Counselors Association conference. Housing First Minnesota has two seats on the Project Build Minnesota board of directors, as do the two other founding organizations, The Minnesota Builders Exchange and Associated Builders and Contractors. The Builders Group (TBG), Northwest Lumber Association and Builders Association Minnesota each have one seat. Project Build Minnesota held its first-ever board of directors meeting earlier this year and the level of energy and excitement is high. A wide array of construction-related associations came together under the guidance of The Builders Group Education Foundation; those discussions lead to the development Project Build Minnesota. “Now, for this movement to succeed, we need the entire industry to step forward and carry the message,” explained Siegel. For questions about Project Build Minnesota, contact executive director Dennis Medo, at 612-221-9849 or dennis@projectbuildmn.org. Have a story idea for this publication? Let us know! Send your story to info@housingfirstmn.org

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

1 Consider posting about Project Build Minnesota on your social media channels “We are happy to provide you with a digital logo file for your social media,” said Siegel.

2 If you are interested in joining the Project Build Minnesota speakers bureau, contact Executive Director Dennis Medo.

3 If you’d like to make a financial contribution to help Project Build Minnesota grow, contact Dennis Medo.

4 Please tell your state legislators, city council members and county commissioners about Project Build Minnesota and ask for their support of our efforts.

Dennis Medo PROJECT BUILD MINNESOTA EXECUTIVE DIRECTOR

612-221-9849 dennis@projectbuildmn.org

Housing at the Capitol

CONTINUED FROM PAGE 1

Workforce Crisis Takes Center Stage at Housing Day at the Capitol leaders attended the event and met with legislators from across every corner of the state to discuss the workforce shortage and other issues facing the industry. “All facets of the housing industry are experiencing this issue, from a shortage of carpenters, roofers, welders, plumbers and more,” said David Siegel, executive director of Housing First Minnesota. “It is clear that this problem is not going away any time soon.” Other issues addressed in meetings with legislators were the regulatory burden, affordable inventory shortage and tax conformity. View photos, read more about the issues discussed and where they are in the legislative process on page 6.

88%

OF MINNESOTANS agree that vocational and technical skills and career opportunities should be emphasized more in public schools SOURCE: POLL FOR HOUSING FIRST MINNESOTA, MARCH 2018

House Minority Leader Melissa Hortman (Brooklyn Park) meets with Housing Day attendees.

Homeownership That Minnesotans Can Afford HousingFirstNetwork.com

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Housing at theAFFAIRS Capitol REGULATORY

Modifications Coming to New Construction Stormwater Permit Later this year, the Minnesota Pollution Control Agency (MPCA) will be updating its Construction Stormwater Permit. While the official draft has not been released, Housing First Minnesota has been actively involved in the process as the MPCA previously met with stakeholders, seeking input on the updated 2018 Permit. What to Expect The most notable change to the 2018 Construction Stormwater Permit will be the format. The MPCA has stated the permit is being completely reconfigured. The new format is said to be more linear and easier to follow. Modification will also be made

to ditch stabilization, infiltration tables and working in contaminated soils. Another notable change is that permits will begin once the payment for the permit has been processed, instead of seven days after the application, which is the case under the current permit. The MPCA said last fall that projects permitted under the current Construction Stormwater Permit will be given 18 months after the adoption of the 2018 Permit to be completed before existing projects need to be transferred over to the 2018 Permit. Industry Seeks Reforms

the housing industry would like to see in the 2018 Permit. The list of recommendations included changing the repair timetable, increased acceptance of digital records, winter inspection frequency and termination of individual lots. Housing First Minnesota will post the draft 2018 Construction Stormwater Permit and an analysis of the new Construction Stormwater Permit as soon as it is released. For the latest industry news, follow Housing Industry News on Facebook or visit housingfirstmn.org/housingindustry-news.

In April 2017, Housing First Minnesota sent the MPCA a list of seven common sense modifications

Construction Stormwater Compliance: Are You Prepared? Warming weather brings rain, along with which comes an added emphasis on construction stormwater management practices. According to the Minnesota Pollution Control Agency (MPCA), the five most common construction stormwater violations are: 1. Missing or inadequate soil stabilization. Without proper stabilization, soil is vulnerable to erosion. 2. Missing perimeter controls. When perimeter controls are missing, stormwater carries sediment off site and into waters of the state. 3. Missing or inadequate inlet protection. Missing or inadequate inlet protection allows sediment to enter the storm sewers and/or water bodies. 4. Vehicle tracking. Without a tracking best management practice (BMP) vehicles track sediment spills onto paved surfaces. 5. BMPs not contained. Unmaintained BMPs do not function properly and allow sediment to escape and enter waters of the state. Reminders on Compliance • Ensure

that

you

have

Construction Stormwater Permit and Plan if one is needed. • Remember to inspect your site within 24 hours of a rainfall greater than ½ inch. • Repair, replace or supplement all nonfunctional BMPs by the end of the next business day after discovery, or as soon as field conditions allow access unless another time frame is specified by the MPCA. Do I Need a Construction Stormwater Permit? You need a permit if you are the owner or operator for any construction activity disturbing: • One acre or more 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. • Less than one acre of soil, but the MPCA determines that the activity poses a risk to water resources. For more information on Minnesota’s Construction Stormwater Permit, visit www.pca.state.mn.us/water/ construction-stormwater.

Lead Paint/RRP Rule: Industry Pushes Reform Housing First Minnesota advocates for several common sense modifications to stormwater permit.

TRACK THE CONVERSATION ON TWITTER: @housingfirstmn #MNHomeownership

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Department of Health Continues to Modify Draft Rules Due to Housing First Minnesota Concerns A late December ruling from the Ninth District Court of Appeals in California could alter the Minnesota Department of Health’s efforts to adopt a costlier lead paint (RRP) rule in the state. The ruling, which follows a 2009 decision that the federal government needed to strengthen its rule, ordered the Environmental Protection Agency (EPA) to draft a new federal rule. Hours before the federal court issued its ruling, the Minnesota Department of Health issued the latest version of Minnesota’s draft rules. The draft, which included 15 changes suggested by Housing First Minnesota in October, is the third version to be released by the Department of Health. Housing First Minnesota has led the charge on improving the draft Minnesota rules, fighting to ensure that remodeling remains both a safe and affordable option for Minnesota families. Since the first draft of rules was released in July, Housing First

Minnesota has gathered input from industry groups, initiated meetings with the Department of Health, prepared two alternative sets of rules and created a list of ways the Department of Health could improve its draft rules. “Although the Department has made great strides in moving to ensure remodeling remains affordable, considerable room for improvement remains,” said attorney Bill Gschwind, Minnesota Construction Law Services, LLC. Gschwind chairs Housing First Minnesota’s Regulatory Affairs Subcommittee. The EPA RRP Rule is the base set of rules that the Minnesota RRP Rules would need to follow and any modifications to the EPA rule could change the RRP Rules the state is currently drafting. Additionally, the Ninth District Court ruling could alter the state’s existing lead abatement rules.

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Experts Weigh Changes to Minnesota’s Building Codes Housing First Minnesota Pushes for Increased Affordability

Minnesota Department of Labor & Industry, where building code meetings have taken place for the past two months.

Since mid-January, appointees to the various Technical Advisory Groups (TAGs) have been hard at work reviewing potential changes to Minnesota’s building codes. Representatives of Minnesota’s housing industry were appointed to the Code Administration, Energy Code, Residential Building Code and Structural Code TAGs and have been providing input on the various code changes from the perspective of home builders and homebuyers. “Thanks to the Housing First Minnesota members and staff participating in the TAG meetings, our message of greater affordability for all Minnesotans is resonating,” said David Siegel, executive director of Housing First Minnesota. New Energy Code? Maybe Not. Early in the process, Department

of Labor & Industry staff presented three options for the new energy code: adopt the 2018 International Energy Conservation code (IECC) unamended, adopt the 2018 IECC with Minnesota-specific changes, or retain the current Minnesota Residential Energy Code. Builders and building officials, both of whom are now just getting comfortable with the current residential energy code, said they did not want to see the 2018 IECC adopted. Special interest groups advocating for more costly energy codes pushed for the adoption of the 2018 IECC, despite concerns from regulators and the housing industry over the cost versus benefit of the stricter code. 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, having just become comfortable with 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. Sprinklers Battle Reignited At a meeting of the Residential Building Code TAG on March 23, the Minnesota Fire Association Coalition (MnFAC) proposed reinstating the sprinkler mandate. Housing First Minnesota’s regulatory affairs manager, Nick 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.

Housing Industry TAG Representatives

Next Steps The TAGs completed their work in mid-March. Recommendations for each code topic will be presented to the Minnesota Construction Code Advisory Council later this year. DLI Commissioner Ken Peterson will consult the recommendations of the TAGs and Council before presenting Minnesota’s draft building codes. DLI expects the new building codes to take effect in March 2020.

Code Administration TAG Mike Swanson* Kurt Welker Energy Code TAG Ross Anderson* Ed Von Toma Residential Code TAG Brent Nygaard* Mike Paradise Structural Code TAG Mike Barden* Craig Oswell *Denotes Housing First Minnesota Appointee

Housing Industry Files Brief in Support of Suit Against Illegal City Fees Housing First Minnesota, National Association of Home Builders and Developer Frank Kottschade Join in Submitting Amicus Brief In February, Housing First Minnesota submitted a friend-of-thecourt (amicus) brief in support of Twin Cities developer Martin Harstad’s suit against the City of Woodbury. Harstad sued the City of Woodbury in 2015, 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. In September, the Court of Appeals upheld a lower court’s ruling that these fees are unlawful. 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. 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. The Minnesota Supreme Court has not yet set a date for the hearing, but Housing First Minnesota will keep you up to date at HousingFirstMN.org

Woodbury City Hall

HOUSING INDUSTRY NEWS

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Housing theTHE Capitol HOUSINGatON HILL

More than 300 housing industry members attended Housing Day at the Capitol on March 14, 2018.

Housing Industry Advocates for Affordability Housing Day at the Capitol attendees met with nearly 80 percent of the state’s 201 legislators, outlining the importance of the pro-housing Minnesota Homeownership Initiative legislation, prepared by the event’s sponsors. Details on the 2018 Minnesota Homeownership Initiative can be found on page 9. “Housing Day at the Capitol provides insight into the legislative issues that the housing industry faces on a daily basis,” said Marla Abstetar, Kohler Co. “Having the opportunity to personally sit down with your

state senator and representative and have a conversation about the importance of these issues gives our representatives a personal connection that they consider when voting.” In addition to the meetings with legislators, the event included an early evening reception with legislators and legislative staff with a presentation from Charlie Cook, a nationally-recognized political commentator and publisher of the Cook Political Report. Rep. Roz Peterson (Lakeville) discusses industry priorities.

Tracy Baglio, Tom Wiener, Bob Clark, Paul Eger and Tracie Fogelson meet with Speaker Kurt Daudt (Crown) to discuss the housing industry labor crisis.

L to R: Sen. Minority Leader Tom Bakk (Cook) with constituents; Political Analyst Charlie Cook shares his insights into the 2018 midterm elections; Sen. Paul Gazelka (Nisswa) with constituents; Bloomington City Council member Shawn Nelson and Rep. Andrew Carlson (Bloomington).

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Note: Full BATC-Housing First Minnesota members already enjoy advocate benefits.

at the state Capitol with regulatory agencies. 2. Subscription to the quarterly industry newspaper, Housing Industry News. Yep, we went old school, and the response has been tremendous. 3. Invitation to attend our Housing First Minnesota roadshow events, held at local breweries, pubs and other great meeting spaces around Minnesota. 4. Opportunities to meet and greet candidates and share your business challenges. 5. Participation in the important Housing First Advocacy Network, which stands ready to act when the call comes for a unified industry initiative. Go to HousingFirstMN.org to become an advocate member.

FIRST 100 WHO SIGN UP TO BECOME ADVOCATE MEMBERS WILL RECEIVE A $20 CABELA’S GIFT CARD. BECOME AN ADVOCATE FOR ONLY $30!

Advocate Program Provides Opportunity for All The housing industry in Minnesota is a collection of thousands of small companies throughout the state. A big challenge for our industry is effectively communicating the challenges our industry faces. There is great value in joining member organizations like Housing First Minnesota and the host of local home builders associations throughout the state – we encourage industry professionals to consider membership opportunities. Housing First Minnesota has created the opportunity to join the industry cause as a Housing First Minnesota Advocate. As a Housing First Minnesota Advocate, you will receive: 1. Advocacy email updates keeping you in the know on laws, regulations, legal action and all the action

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HOUSING ON THE HILL

Gov. Dayton Forms Housing Affordability Task Force Gov. Mark Dayton created the Housing Affordability Task Force in December. The task force, which is examining the high cost of housing in Minnesota, is comprised of affordable housing developers, housing industry experts from the nonprofit and private sectors, local government officials, state legislators, business leaders and housing advocates. “This task force will develop new solutions to address Minnesota’s housing challenges, and help ensure that more families have access to safe, affordable places to live,” Dayton said in a statement announcing the task force last year. To accomplish its work, the task force has formed three smaller workgroups – Homeownership, Rental Housing, and Housing Stability and Opportunity – to examine specific topics. Sparse representation of home builders and housing industry advocates has not deterred Minnesota’s housing industry from providing input during recent meetings. Housing First Minnesota has been playing an active role, including

providing testimony, research and statistics to the task force that point to regulatory costs as a key driver of housing prices. Minnesota’s high regulatory costs are felt across the state, particularly in border cities like Duluth and Moorhead. Duluth Mayor Emily Larson, who sits on the homeownership workgroup, recently pointed to regulatory relief as a needed solution to the high cost of housing in Minnesota. “It’s heartening to see our message of regulatory reform being brought up by task force members,” said Nick Erickson, regulatory affairs manager for Housing First Minnesota. Erickson, who testified on behalf of Minnesota’s home builders at a recent homeownership workgroup meeting, added that task force members are beginning to see that building an entry-level new home in Minnesota is growing increasingly difficult. The Minnesota Homeownership Initiate, a series of pro-housing legislative measures from Housing First Minnesota and the Minnesota REALTORS, was presented at the

Feb. 14 meeting of the homeownership workgroup. Chris Galler, CEO of the Minnesota REALTORS, told task force members that legislative changes can help reduce the high cost of housing in Minnesota by strengthening homeownership tax incentives and encouraging new home development though regulatory relief and addressing the industry-wide labor crisis. Housing First Minnesota and the Minnesota REALTORS submitted their joint 2018 legislative agenda, the Minnesota Homeownership Initiative, as a way to reduce the high cost of housing in Minnesota. Included in the proposal, submitted at the behest of the Housing Affordability Task Force, was legislation addressing the industry-wide labor shortage, reducing the high cost of housing regulations and protections for homeownership tax incentives. The task force is expected to host a series of meetings across the state over the coming weeks and will issue its final report in July 2018.

Mayor Mary Giuliani Stephens talks about housing development.

Housing First Minnesota Meets with Mayor Giuliani Stephens In less than eight months, Minnesota will elect a new governor. Current Woodbury Mayor Mary Giuliani Stephens, who is running to hold that seat, met with Housing First Minnesota leadership in January to discuss a variety of housing issues and her campaign to be Minnesota’s next governor. Among the many topics discussed were Minnesota’s regulatory environment, the construction workforce shortage and the role of the Metropolitan Council. “We know that regardless of who is elected, we need to be able to communicate the key issues

that are facing the housing/construction industry. We believe that discussions like these are extraordinarily valuable as we look toward the future of Minnesota’s housing industry,” said Daryl Doehr, Marvin Windows and Doors, 2017-18 Housing First Minnesota chair. Housing First Minnesota has invited all major gubernatorial candidates to meet with a group of housing industry leaders and will continue to elevate housing as a priority during the 2018 elections.

Elliot Eisenberg’s Economic Forecast 2018: Like 2017 but Slightly Better By ELLIOT EISENBERG GraphsandLaughs, LLC Elliot@graphsandlaughs.net

The combination of solid, widespread global growth; strong labor markets; low inflation; improving commodity prices; a slightly weaker dollar; and continued easy monetary policy from most central banks sets the stage for a good year. Moreover, the recently passed front-loaded tax cuts here in the U.S. will help by adding a pleasant tailwind to the domestic economy. However, there are also economic headwinds. The fear of inflation could spook the Federal Reserve to raise rates more rapidly than expected, which would slow growth and unsettle financial markets. With the now low tax rate on repatriated earnings, American firms might bring back substantial profits from abroad, and in the process, boost the dollar, which will hurt manufacturing activity. Lastly, geopolitical problems always lurk and could easily have negative growth implications. With all this in mind, I expect full-year 2018 GDP to come in at 2.6 percent, slightly higher than the 2.3 percent growth experienced last year and the 2.1 percent average rate

Elliot Eisenberg, housing economist at the 2018 BATC-Housing First Minnesota annual meeting.

HOUSING INDUSTRY NEWS

of growth since the end of the Great Recession. Headline inflation looks to pick up from roughly 2 percent to 2.3 percent in 2018, while core inflation (which excludes food and energy) will edge up only slightly. Because of the slow rise in core inflation, the Federal Reserve will probably have the luxury of time to raise the federal funds rate from where it is now, at 1.375 percent, to 2.125 percent by year’s end. The unemployment rate will fall to 3.6 percent or even 3.5 percent by year end, a rate not seen since the late 1960s! As the labor market tightens, nominal wage growth should increase in 2018, with average annual wage increases rising from 2.4 percent to 2.75 percent by the end of the year: a healthy rise. The rate on 30-year mortgages will be at or near 4.40 percent by the end of 2018. However, continued easing of credit conditions and rising consumer spending due to continued strong employment growth and better wage growth will keep the economy and housing market on track. Housing starts should increase

by about 7 percent, to 1.29 million. Single-family starts will likely total 930,000, up from 850,000, while multifamily starts should flat line at about 360,000. New and existing home sales should collectively rise by about 3 percent and end the year at 6.35 million, with mortgage purchase volume advancing by $100 billion, and refinance activity falling by about $200 billion due to the rise in mortgage rates. Housing inventories will, regrettably, remain unchanged, and combined with limited new home building, home prices will rise by 5 percent. The chances of a recession in 2018 is low given the very solid global economic conditions that currently prevail. I peg the chances of a recession in 2018 at just 15 percent. Elliot Eisenberg, Ph.D. is president of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70-word economics and policy blog can be seen at www.econ70.com.

Have a story idea for this publication? Let us know! Send your story to info@housingfirstmn.org

Addressing the Workforce Crunch, Rep. Regina Barr Discusses Rep. Regina Barr (Inver Grove Heights) is the chief author of HF 3810, a bill that would appropriate money to Project Build Minnesota in order to promote career opportunities in the construction industry. She discussed how she has personal ties to the construction industry and why she is leading the charge to advance the cause.

Rep. Barr: I grew up with three brothers who were smart and bright. Unlike me, they weren’t interested in going to college or working in a traditional office job. Luckily for my brothers there were programs in high school that allowed them to learn the skills necessary to enter into various technical fields right out of high school. One of my brothers worked painting bridges, then as a mason and eventually owned his own construction firm. He now teaches masonry and construction. Students that work in the construction field will have many options to use their skills across a broad spectrum of jobs whether in the field on a construction site or in the corporate office as a project manager or a marketing manager.

Q: The Minnesota construction industry is reporting a workforce crisis. In your opinion, how can the state address this issue and why is it important for the state to act?

Rep. Barr: Minnesota’s workforce in the trades are aging and we have a huge and growing workforce crunch in them, so private entities are fighting over the limited number of new prospective candidates into these skilled trades. Over the last few years we’ve done lots of things to help businesses train new workers with relevant skills in the trades, and Project Build would be another. I am proud to help carry this initiative forward. It will help young Minnesotans receive early exposure to the industry, and get good paying, rewarding jobs while also helping an important industry fill key openings. Q: Could you speak about about your brothers’ experiences working in the construction industry and how they’ve been successful? Why should other students consider the construction industry?

Q: How can Minnesota compete with other states for labor?

Rep. Barr: Minnesota is a great place to live, work and raise a family. In order to compete for labor, we need to ensure that we keep taxes low for both families and businesses, invest in educating students interested in a broad range of careers including those in the trades and ensure that we make it easy to do business across the state by avoiding or removing legislation that limits a company from adding capacity and creating new jobs. Rep. Regina Barr speaking in a House Committee Meeting. SOURCE: MN HOUSE OF REPRESENTATIVES

MINNESOTA HOMEOWNERSHIP INITIATIVE Improving Housing Affordability by Addressing Regulatory Cost Drivers

Addressing the Construction Industry Workforce Shortage

Key Features of the Bill

Provides a legislative mechanism to review regulatory rule proposals to assess the cost impacts and balance affordability with the proposed regulation.

In an act to strengthen Project Build Minnesota, this bill would appropriate $1 million from the workforce development fund to the commissioner of employment and economic development for a statewide public awareness campaign to encourage middle school and high school students to consider careers in the construction industry. A special emphasis will be placed on reaching individuals and groups that are economically disadvantaged or historically underrepresented in the construction industry.

Bill Summary: • HF 3044-Rep. Vogel/SF 2567- Sen. Kiffmeyer would allow for the legislative committee with jurisdiction to review rulemaking proposals that would impact an individual homeowner by raising the cost to purchase or remodel a home by $1,000 or more.

Background: • The regulatory costs associated with new construction have surged over the past decade. We know that we need regulations to ensure safety and durability in new home construction, but the regulatory structure must meet these objectives at a price that families can afford.

Issue: The cost of complying with local and state government regulations negatively affects the affordability of housing. Every mandate, fee and project delay represents a real cost that is passed on to homebuyers. Some of the challenges faced by homebuyers include: • Homebuyer Access—In Minnesota, for every $1,000 increase in the price of a home, about 4,000 households are priced out of the market for a median-priced new home. • Regulatory Costs Have Soared—National estimates show that, on average, regulations imposed by government at all levels account for nearly 25% of the final price point of a home. • Affordability Gets Lost in the Regulatory Process—Wellintentioned policy work in the various state agencies aims to meet regulatory goals, but too often it misses the equally important goal of minimizing cost impacts for homeowners.

Background: • One of the biggest obstacles facing housing and construction is the workforce shortage. And it is clear that this issue will be facing us for some time. • Project Build Minnesota is a 501 (c)(3) nonprofit organized by businesses, organizations and associations throughout the state. The vision of Project Build Minnesota is to create a movement to empower young men and women with choices, information, and ensure a steady flow of qualified skilled labor into Minnesota’s construction market.

Key Features of the Bill Discussions ongoing in the House and Senate Tax Committees.

Background: • The federal “Tax Cuts & Jobs Act” (TCJA), enacted on December 22, 2017, made numerous changes to the federal tax code, including provisions affecting current and prospective homeowners. • Some of the major provisions in the federal TCJA affecting current and prospective homeowners include: • Generally lower tax rates • I ncreased standard deduction to $12,000 for individuals/$24,000 for joint filers • Repeal of personal exemptions • C apped the itemized deduction for state & local taxes (SALT) at $10,000

Issue:

• M ortgage Interest Deduction (MID) limit reduced to $750,000 (for new loans taken out after 12/14/17)

With the help of significant donations and contributions from industry members, Project Build Minnesota plans to move ahead in 2018 with its first round of marketing. The primary goal is to encourage interest in construction careers.

• D eduction for home equity debt interest was repealed. Interest is still deductible on home equity loans (or 2nd mortgages) if the proceeds are used to substantially improve the residence

Housing First Minnesota and the Associated Builders and Contractors are sharing the mission with legislators and seeking state assistance to further strengthen Project Build Minnesota. They are highlighting the importance of solving the labor shortage as it’s vital that we build new homes in this state not only for our economy, but to ensure that the American dream of homeownership is achievable for all Minnesotans.

• Homeownership Is Less Attainable for Too Many—The homeownership rate is at decades-low levels both in Minnesota and nationally. Greater housing affordability means more homeownership for all.

BILL NUMBERS & CHIEF AUTHORS:

Support Homeowners and Homeownership in the Tax Conformity Bill

• In addition to the TCJA, the federal “Bipartisan Budget Act of 2018” (BBA) was enacted on February 9, 2018. That bill includes important homeownership “tax extender” provisions for Tax Year 2017, including the mortgage debt cancellation provision (the “short sale” provision) and the mortgage insurance premium deductibility provision. • In response to the federal TCJA and BBA, Minnesota will have to decide what conforming changes to make in the state tax code.

Issue:

BILL NUMBERS & CHIEF AUTHORS:

As the Legislature considers changes to state tax policy this session in response to the federal TCJA (and BBA), Housing First Minnesota and the MN REALTORS encourage legislators to both do no harm to housing and to look for opportunities to support homeowners and homeownership.

Discussions ongoing in the House and Senate Tax Committees. HF3044 Representative Vogel

SF2567 Senator Kiffmeyer

HF3810 Representative Barr

SF3430 Senator Draheim

HOUSING INDUSTRY NEWS

| 9

MARKET REPORT

Housing Market Report Year-To-Date Single-Family Construction in Select Cities With inventory of existing housing down to a 15-year low, it’s expected to be a good year for new residential construction. Two months in, single family construction is up three percent for the state, and up 12 percent in the Twin Cities year-over-year. One factor that will impact production this year is the labor shortage.

State of Minnesota

1,025

Moorhead

SOURCE: CITY OF MOORHEAD

(Census Data Fargo/Moorhead 948)

TWIN CITIES MEDIAN SALES PRICE Y-Y CHANGE

Duluth

2018 New SingleMankato Family Permits

SOURCE: US CENSUS

St. Cloud

12.7%

SOURCE: CENTRAL MINNESOTA BUILDERS ASSOCIATION

Twin Cities

508 52

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

FROM 2017 TO 2018

Mankato

MINNESOTA MEDIAN SALES PRICE Y-Y CHANGE

13.3%

SOURCE: US CENSUS

Rochester

SOURCE: US CENSUS

FROM 2017 TO 2018

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

United States

FEB. 2018

$250,000 +12.7% Y-Y Change

FEB. 2017

$221,800

2016

$249,900 West - 59

South - 61

FEB. 2018

Midwest - 58

$224,900 +13.3% Y-Y Change

FEB. 2017

$198,450

2016

$205,900

Northeast - 59

Regional Remodeling Market Indicies, 2017 Q4

Twin Cities Median Sales Price

Minnesota Median Sales Price

SOURCE: NAHB

SOURCE: MINNEAPOLIS REALTORS

SOURCE: MINNESOTA REALTORS

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 5 Months

Twin Cities Construction Employment Past 5 Months

SOURCE: DEED

The total number employed in residential construction dropped slightly in February. Year-over-year residential construction employment is up 4.7 percent in the Twin Cities, but is down two percent for the state as a whole.

10 |

HOUSING INDUSTRY NEWS

SPENDING TREND For those planning remodeling projects, spending $5,000 or more is trending upward.

45% 36%

40%

42%

Lack of Housing Inventory Creates Remodeling Rush While the rise in home prices may be disheartening for prospective buyers, it has many homeowners feeling more comfortable to spend money on a remodel. According to a recent survey by

LightStream Home Improvement, 58 percent of U.S. homeowners say they plan to spend money to remodel their home this year. Other findings in the annual survey show that homeowners are feeling optimistic with rising budgets and increasing rates of outdoor, bathroom and kitchen remodeling. Forty-five percent plan to spend $5,000 or more on their projects (an all-time survey high), and the percentage of people planning to spend $35,000 or more - doubled from 2017. Remodelers in Minnesota agree with the survey stating many homeowners are looking to take on larger projects. “This year, we’ve already seen an increase in sales with more buyers looking to do bigger projects and

spend more money,” said Meg Jaeger, client relations manager at New Spaces. The Leading Indicator of Remodeling Activity (LIRA) projects that homeowner spending on improvements and repairs will approach $340 billion in 2018, an increase of 7.5 percent from estimated 2017 spending. “Despite continuing challenges of low for-sale housing inventories and contractor labor availability, 2018 could post the strongest gains for home remodeling in more than a decade,” says Abbe Will, research associate in the Remodeling Futures Program at the Joint Center for Housing Studies. “Annual growth rates have not exceeded 6.8 percent since early 2007, before the Great Recession hit.”

Minnesota Homes Are More Energy-Efficient Than Ever

cavity. We are currently installing R20 to R21 depending on the builder inside the wall cavity. Some builders are adding insulated wall sheathing to the outside of the building. This adds an additional R5-R10 to the exterior along with helping to eliminate thermal bridging. I am currently working with some builders that have started this practice and are seeing excellent results in energy efficiency and homeowner comfort.

“Despite continuing challenges of low forsale housing inventories and contractor labor availability, 2018 could post the strongest gains for home remodeling in more than a decade.” Abbe Will, RESEARCH ASSOCIATE

2015

2016

2017

2018

IN THE REMODELING FUTURES PROGRAM, JOINT CENTER FOR HOUSING STUDIES

$5,000 or more SOURCE: HTTP://WWW.REMODELING.HW.NET/BENCHMARKS/ECONOMIC-OUTLOOK-RRI/NEW-POLL-SHOWS-REMODELING-DESIRES-REMAIN-STRONG_O SOURCE: HTTP://WWW.JCHS.HARVARD.EDU/REMODELING-MARKET-MARCH-HIGHER-2018

Baby Boomers in the House Hunt While much of the discussion has been centered around what millennials want, there should be just as much focus on what the baby boomers are looking for. The 76 million boomers, born between 1946 and 1964, may be getting older, but they are definitely not ready for the retirement home.

Q: What do builders sometimes overlook that hurts a home’s energy efficiency score?

Boomers are in a good place financially to drive much of today’s housing activity. As many boomers have their retirement savings in 401ks and already own homes, the alltime highs in the stock market and the positive equity for many homeowners disproportionately benefits boomers.

B A BY B O O M E R T R E N D S Roughly 275,000 boomers retire each month Boomers control two-thirds of the country’s wealth Older boomers tend to be on a fixed income and tend to be more price sensitive 10,000 boomers turn 65 each day SOURCE: ZONDA BY MYERS RESEARCH

Baby boomers will drive home design just as much as millennials in 2018. One size does not fit all for each baby boomer buyer, but these are some common trends according to Zonda by Meyers Research. 1. Single-story with options - 79 percent of Active Adult homes are single-story, and while it is preferred, offering an optional second story or pop top goes a long way. 2. Customizable space - Give as much flexibility with space as possible. One buyer may use the spare space for a craft room, while another may prefer a card room. 3. Socializing is very important - Allow for a great room to support gatherings, including a large kitchen. 4. Regional amenities - Piggybacking on regional amenities like restaurants, shops, and grocery stores. “Resort-like amenities, bistros, and bars that promote social interaction and support for active and healthy living are some of the biggest selling points for AA buyers,” said Michelle Weedon, senior vice president of advisory at Zonda. SIGN UP TO BE A PART OF THE HOUSING MOVEMENT • HOUSINGFIRSTMN.ORG

Q & A with ROSS ANDERSON The Energy Network Worldwide, LLC Ross@TENww.com

More than 11,000 homes have been Green Path Energy Tested since Minnesota’s Green Path program started in 2011. We spoke with Ross Anderson, energy efficiency consultant from The Energy Network Worldwide, on what he is seeing in the market place and his advice for builders looking to make their homes more energy efficient. Q: What features help improve a home’s HERS score the most?

Anderson: A home’s air tightness (creates a better blower door test score), efficiency of heating and cooling equipment, efficiency of water heating equipment, insulation levels (walls, attic, foundation walls and below the slab) and energy-efficient windows (low U-value ratings—the lower the better) all help improve a home’s HERS score.

Anderson: The air tightness of the home has such a large effect on the final HERS score. This is something that can be addressed during construction and can be easily fixed with some attention to detail. Working with your HERS rater and insulator prior to drywall being installed is essential to getting an airtight house. This is a low-cost fix during construction, but a high-cost fix at the end of construction. Q: What’s the most common energy efficient home features you’re seeing?

Anderson: LED lights in all of the fixtures. Most builders have gone to all LED lighting in their homes. This provides huge energy savings and homeowners don’t have to change out bulbs as often. Q: What are consumers asking for when it comes to energy efficiency?

Anderson: Smart home technology such as smart thermostats and apps that sync with your equipment. Being able to monitor heating, cooling and humidity from your smartphone is becoming standard in homes. Q: Do you have any predictions for green buildings trends or new technology that we will see more of in the next five years?

Anderson: We are getting close to maxing out the amount of insulation that we can get in a 2X6 wall

Q: Anything else you think the industry should be aware of as far as green building and trends?

Anderson: Water conservation is the latest green feature being addressed nationally. The goal is to make sure that hot water reaches the fixtures faster to eliminate water waste. Plumbers are adding insulation to piping and are paying more attention to the length of water lines between the water heater and the fixtures.

HOME ENERGY RATING SYSTEM OR HERS INDEX

The lower the HERS score, the more energy efficient the home’s construction. The HERS Index is at the core of Minnesota’s Green Path Program. WWW.MNGREENPATH.COM

HOUSING INDUSTRY NEWS

| 11

MARKET REPORT

Lennar Tops the List of Twin Cities Builders for 12th Year in a Row Results from a recent survey by Housing First Minnesota show that Lennar was the state’s top ranked builder once again in 2017. Lennar has held the top spot since 2006. Rankings are based on annual gross revenue as reported by respondents for for-sale housing. Lennar reported gross revenue at $291.9 million for 592 single family homes and 66 multi-family homes (658 total) closed in the 2017 calendar year. “It’s great to see that our Top 25 Builders combined saw a 10 percent increase in the number of units in 2017 compared to 2016,” said David Siegel, executive director of BATC-Housing First Minnesota. “We have a unique market in the Twin Cities that is fortunate to have such a variety of great builders.” “Over the past 12 years, more Twin Cities homebuyers have trusted Lennar to build their families’ dream homes. We are proud that we have continued to earn that trust,” said Bill Burgess, Lennar Division president. “With our recent merger with CalAtlantic Homes, our Lennar team is focused on designing and building homes that incorporate the latest design trends and features.”

TEXT “HOUSINGFIRST” TO 52886 Join the Housing First Advocate Network Stay up to date on the latest housing industry news!

TOP25 2 0 1 7

COMPANY NAME

B U I L D E R S

GROSS REVENUE

TOTAL UNITS

SF UNITS

ATTACH HOUSING

LENNAR

$291,956,420

658

592

PULTE HOMES OF MINNESOTA, LLC

$214,613,089

462

408

CALATLANTIC HOMES

$204,385,075

526

329

197

D.R. HORTON, INC. - MINNESOTA

$177,292,002

436

368

HANSON BUILDERS, INC.*

$110,532,510

179

ROBERT THOMAS HOMES, INC.

$104,957,024

191

M/I HOMES

$102,852,000

251

GONYEA HOMES & REMODELING

$76,057,122

CAPSTONE HOMES, INC.

$72,140,841

203

10. ETERNITY HOMES, LLC

$58,006,833

107

11. CREATIVE HOMES, INC.

$55,629,389

113

108

12. BOHLAND HOMES

$47,761,670

13. KEY LAND HOMES

$40,000,000

14. BRANDL ANDERSON HOMES, INC.

$33,907,993

15. COUNTRY JOE HOMES**

$33,136,940

16. R HOME, LLC

$31,660,589

144

17. DAVID WEEKLEY HOMES

$29,429,526

18. SHARPER HOMES, INC.

$26,300,000

19. PROGRESSIVE BUILDERS, INC.

$25,234,140

106

102

20. BENZINGER HOMES

$24,565,786

21. LDK BUILDERS, INC.

$21,620,897

22. NOVAK-FLECK, INC.

$21,452,183

23. MCDONALD CONSTRUCTION, INC.

$20,932,204

24. TJB HOMES, INC.

$20,112,000

25. DONNAY HOMES, INC.

$19,600,000

*Includes Jonathan Homes **Includes Youngfield Homes, Inc.

BE SEEN.

2018 BATC-HOUSING FIRST MINNESOTA | BATC.ORG

A DV ER T IS E I N H O U S I N G IND U ST RY N E WS Reach more than 12,000 licensed contractors – nothing else in Minnesota has this industry reach! For more information contact :

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KORI MEEWES

BRAD MEEWES

612-801-9874 kori@batc.org

651-269-2399 brad@batc.org

INDUSTRY IN ACTION

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

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Don’t miss the opportunity to engage with this amazing crowd. Make business connections and network with industry peers. Enhance and strengthen your business with our educational sessions. A $20 education fee includes two sessions. Three topics are offered at 1 p.m. and are repeated at 2 p.m. So pick your two favorites and sign up for education sessions when you register online. Gift cards, coolers, concert tickets and more! Many of our exhibitors have fun games and giveaways at their booths that you won’t want to miss. MORE THAN 200 EXHIBITORS! REGISTER AT BATCBRS.COM

Home Builders Get In on the Big Game Action Several spectacular Twin Cities homes were featured on Feb. 3 in the NFL Alumni Artisan Home Tour. Attendees were transported by motor coach to four homes built by Denali Custom Homes, John Kraemer & Sons, Lecy Bros. Homes & Remodeling and Stonewood LLC followed by a luncheon reception at the Lafayette Club hosted by former NFL players, including Kurt Knoff, Darrel Tompson, Bart Oates and Matt Blair. The event raised money and awareness for the NFL Alumni and BATC-Housing First Minnesota Foundation during the weekend of the Big Game.

Guests tour four Twin Cities homes during the NFL Alumni Artisan Home Tour.

HOUSING INDUSTRY NEWS

| 13

Housing News at a Glance Updates from Across Minnesota in addition to commercial development and a new town center by 2036. Rochester City Council Approves Two Towers

Credit: Rice Creek Commons town center rendering by Alatus.

Pulte Proposes Active Adult Community in Corcoran Pulte has submitted a plan that would bring 393 detached villa townhomes to Corcoran. Pulte told Finance and Commerce that the community would be a high-amenity active adult product that serves homeowners 55 and older. The development would sit on 187 acres at the northwest corner of County Road 30 and Highway 101. The project will go before the Corcoran

City Council on April 26. According to Brad Martens, the city administrator, if approved it would be the city’s second-largest residential development. Arden Hills Site One Step Closer to a Makeover Ramsey County officials and Alatus, a Minneapolis-based architecture and design firm, announced in March that they had finished the preliminary develop-

ment framework for the first 70-acre phase of what will be a five-phase redevelopment of the former Twin Cities Army Ammunition Plant in Arden Hills. Alatus, the master developer of the Rice Creek Commons development, hopes to break ground on 150 single-family homes, 250 multi-family apartments and 250 senior housing apartments by 2020. When complete, the 427-acre property could span 1,460 housing units,

The Rochester City Council voted in March to grant a conditional use permit for the multi-million-dollar Bloom Riverfront development along the Zumbro River downtown. The 925,000-square-foot development would blend senior housing, condominiums, public spaces, retail, restaurants, parking and a five-star hotel. It would be the $5.6 billion Destination Medican Center’s largest project yet. The shorter tower could get underway later this year and would include 215 units of senior living, retail and parking. The second tower could break ground in 2020 and include 181 four- and five-star hotel rooms and suites, condominiums, retail space and parking. Study Reveals High Cost for Single Family Housing in Duluth According to market analysis by Maxfield Research & Consulting LLC, Duluth needed to add 150 single-family homes each year between 2014 and 2020, just to keep up with projected population

growth. But according to the study Duluth reported just 31 new housing starts in 2014, and 45 in 2015. New homes are not only in short supply in Duluth — they’re also relatively more expensive, compared to other cities in greater Minnesota. Duluth stands in particular contrast to Moorhead, where the average cost of a new home is 37 percent lower. The higher cost of housing in Duluth doesn’t correlate to its residents’ income. Moorhead’s median household income exceeds Duluth’s by 18 percent. North Mankato Sees Increase in Townhome Development North Mankato saw an uptick in townhouse developments, according to the city’s year-end report. The majority of the activity was in the northwest addition of the North Port Industrial Park. North Mankato issued six townhouse permits for 35 units in 2017. That’s compared to none in 2016 and only five permits in 2015 for 19 units. Community Development Director Mike Fischer told the Mankato Free Press that North Mankato will likely see even more economic growth in 2018, based on the number of projects planned this year.

Two More Homes for Minnesota Veterans Each year, the Minnesota Assistance Council for Veterans (MACV) receives more than 25,000 contacts, inquiries and requests from veterans across the state who are homeless or experiencing a crisis that could lead to homelessness. Lennar and the BATC-Housing First Minnesota Foundation are ready to once again help MACV create more housing for these veterans in need. This spring, Lennar and the BATC-Housing First Minnesota

Foundation will break ground on another home for MACV. Last year, the two organizations built a home for MACV to help house a veteran along with their family. This year, the home will help house female veterans, a population that is in serious need. “We are thrilled to be partnering with Lennar to help MACV and homeless veterans once again,” said Bob Bennett, BATC-Housing First Minnesota Foundation manager.

“We’re excited that this project will provide much-needed temporary shelter for up to five women at a time.” The Minneapolis Area Association of REALTORS® Foundation (MAAR Foundation) has stepped in to help with this project by donating a lot that was given to them to specifically help veterans. Lennar is set to build a custom home plan

“We’re excited that this project will provide a much needed temporary shelter for up to five women at a time.” Bob Bennett, BATC-HOUSING FIRST MINNESOTA FOUNDATION MANAGER

The Maplewood lot was donated by the Minneapolis Area Association of REALTORS Foundation and will be the site of a five-bedroom home built by Lennar.

14 |

HOUSING INDUSTRY NEWS

on the lot with construction starting this spring. This will not be the only home for MACV this year. Lennar and the BATC-Housing First Minnesota Foundation are laying the groundwork for another home to help MACV house veterans. Construction on the second home is planned for later this year.

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.

M I N N E S O T A

HOUSING INDUSTRY NEWS March 2018, Volume 2, Issue 1 PUBLISHER David Siegel David@HousingFirstMN.org EDITOR Katie Elfstrom Katie@HousingFirstMN.org GRAPHIC DESIGN Dawnita Parmely Caroline Ellingboe Shields Hannah Swan Adora Vang

More Than Just a Bathroom Remodel For the 32 individuals with disabilities living at Homeward Bound’s Brooklyn Park home, accessibility makes a big difference in everyday life. Up until this year, two of the bathrooms in the home were completely useless due to the small tubs and small spaces, making life a little more challenging for the residents that live there. Thanks to the BATC-Housing First Minnesota Foundation and build partners Minnesota Rusco and Contract Interiors they now have two brandnew bathrooms and flooring that better fit their needs. “If you can imagine waking up with extraordinary challenges that you have to face every day just to have the necessities met for you, so for them to have a choice and to have more options, it’s a big deal,” said Lori Merriam, director of development for Homeward Bound.

INDUSTRY GIVES BACK

Minnesota Rusco completely remodeled both bathrooms, installing showers and making them much more accessible. Contract Interiors replaced the carpeting in the main living areas. The old carpet had been so worn down it was hard to push wheelchairs through. “These projects wouldn’t have gotten done without the generous help of these partners. It’s amazing,” said Merriam. Homeward Bound is one of the largest community-based residential service providers in Minnesota for children, adolescents and adults with complex disabilities. The BATC-Housing First Minnesota Foundation also remodeled one of Homeward Bound’s homes in 2016.

ACCOUNTING Janice Meyer CONTRIBUTING WRITERS Katie Elfstrom Katie@HousingFirstMN.org

Nick Erickson Nick@HousingFirstMN.org

Mark Foster Mark@HousingFirstMN.org

David Siegel 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

Child-sized bathtubs were replaced with wheelchair accessible showers.

Homeward Bound resident that will benefit from the new renovation.

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

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. 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.

Homeward Bound and partners celebrate the completion of the renovation.

New bathrooms remodeled by Minnesota Rusco.

Remodelers Create New Digs for Women Undergoing Treatment Avivo is the only program in Minnesota that provides housing for women along with their children while they undergo addiction treatment and recovery. Until this spring, the apartment units that housed these women were in serious need of repair and updating. “They had housing here, but this housing did not reflect the quality of the overall services that they were receiving,” said Kelly Matter, president of Avivo. Earlier this year, Avivo got in touch with the BATC-Housing First Minnesota Foundation, which was able to find two build partners to completely renovate four apartment units. The Kingdom Builders renovated three of the units and Crystal Kitchen Center renovated the fourth. “By rehabbing this housing, it will catapult them,” said Matter. “It means so much more than you could ever think, this is home for these women and their children while they do the hardest work they will ever do.” Four Minneapolis women were welcomed home to the brand-new apartment units this March. With

new layouts and flooring and renovated bathrooms and kitchens, these apartments will provide a better quality of living for the women and their children who live there. Tamika Bazinet, a resident who moved in to one of the units along with her 13-year-old son, was in disbelief. “It’s beautiful. I’m so grateful,” said Bazinet. “It’s a total turn around. It doesn’t even look like the same place.” Avivo specializes in providing services to women who find themselves struggling with addiction, co-occurring chemical and mental health diagnoses or homelessness and have a desire to re-unify with their children. This apartment plays a critical role in Avivo’s program success. “It makes all the difference in the world. Without being able to have housing with their children, moms will often forgo treatment and not receive the recovery that they need,” said Matter. “This housing raises the bar for them, it’s a difference-maker.” 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.

Tamika Bazinet (right) moves into her remodeled apartment. Avivo provides housing for recovering mothers and their children.

Renovations included new kitchen cabinets, appliances, flooring and fresh paint.

HOUSING INDUSTRY NEWS

| 15

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