Housing Industry News Vol. 3 Issue 4 - December 2019 by Housing First Minnesota

M I N N E S O T A

HOUSING INDUSTRY NEWS VOL. 3 ISSUE 4, DEC. 2019

THE MINNESOTA HOUSING INDUSTRY NEWS SOURCE BY HOUSING FIRST MINNESOTA • HOUSINGINDUSTRYNEWS.ORG

Banner year for homebuilding

Single-family construction made a second-half comeback in 2019.

Homebuilding on the rise, but not enough Minnesota homebuilding had a banner year in 2019. With a 24% increase in units over 2018 and a 12-year high in the total number of units built since 2007, the trend turned positive. This is great news for the state’s undersupplied housing market. Following a sluggish start, single-family construction made a remarkable mid-year turn, creating a second-half comeback in 2019 with six consecutive months of double-digit growth. According to the Keystone Report, permits for single-family housing in the Twin Cities ended the year up 6% over 2018. The top five cities for single-family

construction were Lakeville, Woodbury, Blaine, Plymouth and Otsego. Multifamily construction also saw a big boost in activity in 2019 with a 40% increase in total units over 2018, making 2019 the biggest year for multifamily construction in recent history. The top five cities for multifamily construction were Minneapolis, Minnetonka, Shakopee, Bloomington and Lakeville. Inventory Crisis Looms While the growth seen in 2019 will positively impact inventory shortages, the larger problem of available homes for purchase and rent remains a crisis.

According to Gov. Dayton’s Task Force on Housing, the state needs an additional 10,000 units each year beyond 2017’s level of production, which is about 32,000 units annually, to rebalance the housing supply by 2030. Through this lens, the 2019 gains merely slowed the deepening inventory imbalance, but did not produce enough new homes to begin to solve the supply equation. The 2019 boom in activity must also be viewed with regard to price points. Closely tied to the inventory crisis, the inability for the market to produce homes at affordable price points continues to be the biggest industry challenge. While our state’s housing market is CONTINUED >> PAGE 4

INSIDE THIS ISSUE

Minnesota Department of Labor and Industry declares storm shelter requirements invalid PAGE 6

Legislators renew call for audit PAGE 9

Demographics of homebuyers shift PAGE 14

Senate Select Committee on Homeownership hits the road Lyman Lumber, Lennar and D.R. Horton among on-site hosts In an effort to discover innovative ways to lower the cost of housing and increase homeownership, the Senate Select Committee on Homeownership Affordability and Availability has been traveling the state. From Woodbury to Montrose

to Redwood Falls, the committee has toured model homes, new developments and manufacturing facilities over the course of the past three months. CONTINUED >> PAGE 11

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PRESIDENT’S NOTE M I N N E S O T A

Reimagining housing

John Rask, 2019 President of Housing First Minnesota, Vice President of Land for M/I Homes

As 2019 draws to a close, it’s a good time to reflect on how the housing industry has fared over the last year. On the production side, there were annual increases in both single-family and multifamily housing starts compared to last year. Unfortunately, the incremental gains do not come close to the surge in construction needed to fix our

nation-worst inventory crisis. In total, our inventory worsened in 2019 and the cumulative impacts of this are continuing. Facing this reality, our industry’s call to reimagine housing has never been timelier. In this regard, 2019 was an extremely productive year in setting the stage for the reimagination of housing. The establishment of the Senate Select Committee on Homeownership, along with the Legislative Commission on Housing Affordability, create forums for a full discussion on issues impacting housing. Much credit goes to the bipartisan slate of legislators who have taken ownership of this issue and given it the priority that housing needs and deserves. As I spent time testifying before in the Senate Select Committee on Homeownership, I was pleased to be able to lay out the multitude of steps it takes to deliver homes for Minnesotans to purchase. As an industry, we understand how complex, time-consuming and costly this process is for homeowners. For those outside the

HOUSING INDUSTRY NEWS December 2019, Volume 3, Issue 4

industry though, this process is incredibly difficult to understand. I believe we took positive steps to build the basis for understanding how housing policies impact the price Minnesotans pay to become homeowners. The progress will allow us to take it to the next level where policies can be reviewed, amended and in some cases, fully reimagined. It’s rare that a week goes by where we don’t read something about the inventory crisis impacting housing markets across the country. I truly believe this is the one of the biggest challenges facing our state over the next decade. It’s been an honor to be part of the early steps in fixing housing, and I look forward to joining fellow industry leaders as this issue moves forward. Congrats to everyone for a great 2019, let’s keep growing in 2020!

PUBLISHER David Siegel David@HousingFirstMN.org EDITOR Katie Elfstrom Katie@HousingFirstMN.org GRAPHIC DESIGN Clare Buche ACCOUNTING Janice Meyer ADVERTISING SALES Brad Meewes Kori Meewes CONTRIBUTING WRITERS Katie Elfstrom Katie@HousingFirstMN.org

Nick Erickson

Nick@HousingFirstMN.org

Mark Foster

Onward,

Mark@HousingFirstMN.org

Kristen Ober Kristen@HousingFirstMN.org

David Siegel David@HousingFirstMN.org

James Vagle

James@HousingFirstMN.org

Housing First Minnesota David Siegel, Executive Director

HousingIndustryNews.org

John Rask, President

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News Tips Have an idea for a story for our next issue? Contact Editor Katie Elfstrom at Katie@HousingFirstMN.org or send your story to Info@HousingIndustryNews.com

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.

Be a part of the growing housing movement in Minnesota. Twitter: Follow us @HousingFirstMN Facebook: Facebook.com/HousingFirstMinnesota Housing First Minnesota is the voice for home builders, remodelers and all who are dedicated to building safe, durable homes at a price

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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

PROJECTBUILDMN.ORG

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.

THE HOUSING BEAT

Across the country, there is much talk about housing HERE ARE SOME OF THE LATEST QUOTES ON THE STATE OF THE INDUSTRY:

We cannot repeal the laws of supply and demand in housing. But we can help repeal the regulations behind America’s high housing costs. These onerous land-use restrictions are key to fighting segregation in today’s cities.”

What local governments need to learn to do when population and prices rise is to do the opposite of their instinct and lower barriers to the market.” ROGER VALDEZ FORBES CONTRIBUTOR

MICHAEL HENDRIX MANHATTAN INSTITUTE

Driving skyrocketing costs are burdensome local zoning and landuse restrictions, environmental regulations, and permitting requirements. Our affordability problem will not be solved until local governments lower barriers that make it more expensive to build new affordable housing.” MARK CALABRIA FEDERAL HOUSING FINANCE AGENCY

A severe and enduring shortage of inventory, particularly at entry-level price points, does continue to impede many would-be buyers’ aspirations and is somewhat worrisome.”

The developer is the only person who is advocating on behalf of future residents, as the process is designed for them to be voiceless. If we desire solutions to climate change, housing affordability, multi-modal connectivity, good schools, and vibrant retail ... it is imperative that we keep this view in mind: that the needs of future residents are equal to the current ones.” DANIEL HERRIGES STRONG TOWNS

MATTHEW SPEAKMAN ZILLOW

In the long run, the key to making housing more affordable is to build more homes.”

First of all, government needs to decide at all levels, is an adequate housing supply and a free-flowing supply of new housing a net benefit to society or not?” PETER GILGAN MATTAMY HOMES

WASHINGTON POST EDITORIAL BOARD

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undersupplied across the board, according to the Minneapolis Area REALTORS®, the greatest inventory gap can be found at the lower price brackets. Specifically, under $350,000. At this price point, the REALTORS® report multiple offers and homes selling for over list price in record time. Prices Still Climbing Consensus has largely emerged that homes under $350,000 are where the market sees the highest demand and where true market health can be achieved over the long term. Aggravating this challenge is the housing industry’s inability to supply this section of the market at any consistent basis. According to data from the data from NorthstarMLS, the median sales price for new single-family homes hit $425,000 in the Twin Cities this October. Of the new construction homes

for sale in the Twin Cities only 30% are priced under $350,000 and only 7% are priced under $250,000. This is a far cry from the tens of thousands of affordably priced homes needed in this market. The demand for affordably priced homes will not change substantially in the coming years, and certainly not until market balances. As it was at the outset of 2019, the housing market requires the construction of affordably priced homes, the majority under $350,000.

the housing industry, but leading builders report that they have had minimal cost savings impacts. There is growing national movement that challenges the longheld zoning power granted to local governments to require lot size, aesthetic and structure size in new housing developments. This debate has begun in Minnesota and it is anticipated that major changes will be contemplated by the legislature as the housing crisis deepens and the need for housing affordability increases.

What the Market Needs The question of how to address this has put pressure on the housing industry and regulators alike, to find a pathway to construct more affordably priced homes. There is significant emphases on construction innovations through modular construction and panelization techniques. These approaches have helped stem the labor challenges facing

2019 Bottom Line 2019 will be remembered for its big second-half rally that put it at a 12-year high for our region. After a dozen years of climbing to pre-housing crash levels, the progress should be acknowledged and even celebrated. As the industry looks ahead, however, the 2019 momentum has to be leveraged for something much larger and sustainable.

Housing First Minnesota launches association health plan for housing industry Comprehensive plan available through Blue Cross and Blue Shield of Minnesota Housing First Minnesota, working with consulting firm North Risk Partners, launched an association health plan (AHP) through Blue Cross and Blue Shield of Minnesota (Blue Cross) for those involved in residential homebuilding. Several industry firms have already signed up for the innovative plan and will save money on premiums beginning in 2020. Housing First Minnesota is serving as the plan sponsor. Eligible members of Housing First Minnesota will be able to sign up for comprehensive insurance benefits at favorable rates through Blue Cross, Minnesota’s largest health insurer. Association health plans are a category of insurance products that allow small businesses and self-employed workers from within the same industry to obtain health care coverage as if they were a single large employer.

HOUSING INDUSTRY NEWS

“Many of our members are small or medium-sized business owners and that makes it difficult to provide great insurance options as a benefit to their employees,” said David Siegel, executive director of Housing First Minnesota. “In this era of low unemployment and a workforce shortage in construction, health insurance benefits have become even more important. It was important to us as an organization to provide our members and their employees with better access to health insurance that can save them money while providing great coverage,” said Siegel. The process of launching the AHP was complex and took more than a year. “Creating an AHP involved multiple steps: determining whether the association met state and federal requirements, defining membership and industry for the plan’s underwriting,

agreeing on plan benefits, and finally gaining state approval,” said Gary Helm, employee benefits risk advisor with North Risk Partners. In addition to creating the AHP, North Risk Partners has helped Housing First Minnesota assemble a separate benefits program for life, dental, vision, disability and accident insurance coverage offerings. North Risk Partners has helped to launch AHPs in other states as well, including builder association plans in North Dakota and Iowa. “Blue Cross wants the many local, small companies of Minnesota to have quality

health care solutions that can empower them to remain even more focused on their business,” said John Cooper, director of small group sales at Blue Cross and Blue Shield of Minnesota. “We are proud to be part of that solution for the members of Housing First Minnesota through this AHP.” Industry members can learn more about eligibility and enrollment options by visiting HousingFirstMN.org or contacting Heather Griffis at Housing First Minnesota at 651697-7573 (heather@housingfirstmn.org)

Building code changes take shape The proposed Residential Building Code contains few changes for residential construction in Minnesota. Changes for 2020 and Minnesota-specific amendments to the model codes include: • New and existing basements do not need egress windows if the basement and exit floor are completely sprinkled. No egress window is required in older basements undergoing renovations if no bedroom is present. • Homes undergoing alterations do not need hardwired, interconnected smoke alarms or carbon monoxide alarms if the area undergoing renovations does not result in the removal of interior wall, ceiling finish, and if there is no attic access. Hardwired devices are not needed in attic, crawl space without removal of interior finish. • Photovoltaic systems (solar systems) adopted 2018 IRC language without amendment for roof access, emergency egress pathway, smoke ventilation, eave/ ridge lines on attached structures. The new building code is expected to go into effect March 31, 2020. Electric Code At its Oct. 8 meeting, the Minnesota Board of Electricity voted to adopt the 2020 National Electrical Code without Minnesota amendments. Included in 2020 NEC Section 210.8 (A) are requirements that all basement

receptacles have GFCI protection and that specific 250-volt appliance receptacles have GFCI protection. Other changes include a provision that requires a surge protector be installed in every home and a requirement that all single-family and two-family homes have a labeled exterior electrical disconnect. A draft of the new Electrical Code is currently being prepared, and the Department of Labor and Industry is taking comments. The target effective date for the new Electrical Code is July 1, 2020. Plumbing Code The Minnesota Board of Plumbing voted to begin the rulemaking process for an updated plumbing colde. Earlier this year, the Board of Plumbing’s Ad Hoc Rulemaking Committee reviewed the 2018 Uniform Plumbing Code and Minnesota-specific amendments to the UPC. Included in the amendments was a request made by Housing First Minnesota and others seeking the repeal of the dishwasher air gap. Technical staff at the Department of Labor and Industry will begin preparing a draft Plumbing Code for the Board, as the formal rulemaking process is just beginning. The new Plumbing Code is expected to go into effect next year. Energy Work Group After the defeat of a measure that would have created a second set of energy codes for commercial and multifamily construction last

legislative session, the Departments of Commerce and Labor and Industry have formed a work group to examine alternatives. Eighteen work group members across construction, local government and energy special interest groups will work on a joint report to recommend energy efficiency policies to the legislature and governor that do not violate Minnesota’s one state, one code standard. Clean Cars Rule in The Works The Minnesota Pollution Control Agency is looking into adopting new regulations to reduce the amount of greenhouse gas emissions from vehicles in the State of Minnesota. In background documents, the MPCA alluded to the lack of electric vehicle chargers in homes as a barrier to increased adoption of electric vehicles.

In its comments to the MPCA, Housing First Minnesota stressed that this rulemaking effort should steer away from any requirements related to the housing industry as the proper home for these regulations is the Department of Labor and Industry. Construction Demolition Landfills The Minnesota Pollution Control Agency held a joint meeting of its Construction Waste and Demolition Landfill groups on Oct. 23. The meeting of Rule Advisory Panel and Sustainable Building Group received an overview on a recent groundwater contamination report from construction and demolition landfills. A stand-alone meeting of the Rule Advisory Panel was held on Nov. 19.

The new building code is expected to go into effect March 31, 2020.

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Minnesota Department of Labor and Industry declares storm shelter requirements invalid Local storm shelter mandates for new, slab-on-grade construction requirements are unenforceable and a violation of the State Building Code, according to an Oct. 23 determination issued by the Minnesota Department of Labor and Industry. In September, Housing First Minnesota requested clarification from the Department after its attempt to have the City of Lakeville remove its storm shelter requirement from its City Code were rebuffed. The letter to Housing First Minnesota announcing the Department’s determination said: “The Minnesota State Building Code does not require safe rooms or shelters for slab-on-grade residential construction and has specifically deleted IRC Section R323 (Storm Shelters/Safe Rooms) from the International Residential Code by way of Minnesota Amendment. See Minn. Rule 1309.0323 (2012). Based on the foregoing statutes, Rules, and case law, it appears that any municipal regulation which requires storm shelters or safe rooms in residential dwellings is

superseded and preempted by the Minnesota State Building Code.” In addition to Lakeville, the cities of Jordan, Otsego and Wyoming also had storm shelter requirements for new, slab-on-grade homes. One State, One Code Standard When the state building code was established five decades ago, the Minnesota Legislature sought to establish a single, statewide set of construction standards that balanced safety, durability and affordability. The legislature thought this single set of requirements was so important that it explicitly called out affordability in the enabling legislation to the state building code and prohibited cities from enacting their own standards that deviate from the state building code. A municipality must not by ordinance, or through development agreement, require building code provisions regulating components or systems of any structure that are different from any provision of the State Building Code. Minnesota Statute 326B.121, Subd. 2(c) Despite this clear language,

occasional disagreements over Minnesota Statutes §326B.121, subd. 2(c) have found their way into the courts. The result of these challenges, in both City of Morris v. Sax Investments and Builders Assoc. of Minnesota vs. City of St. Paul, have set the precedent that municipalities are unable to set standards that are additional or complementary, whether they are local codes or merely so-called “policies.” “Thus, even a provision that is merely additional and complementary to a provision in the State Building Code is prohibited,” according to Chief Justice Lori Gildea, Minnesota Supreme Court, City of Morris v. Sax Investments, Inc., May 15, 2008.

“Thus, even a provision that is merely additional and complementary to a provision in the State Building Code is prohibited.” Chief Justice Lori Gildea,

MINNESOTA SUPREME COURT CITY OF MORRIS V. SAX INVESTMENTS, INC., MAY 15, 2008.

Next Steps Following the determination from the State of Minnesota, the cities of Lakeville, Otsego and Jordan stopped the enforcement of this requirement and are each working to remove this requirement from their city ordinances. The City of Wyoming had not provided an update by the time of printing. The cities of Lakeville, Otsego and Jordan are working to remove the requirement.

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Legal briefs: Impact fees back in court Fifteen months after the Minnesota Supreme Court ruled against traffic impact fees in Harstad v. Woodbury, the issue was heard again before a Hennepin County judge on Nov. 1. Housing First Minnesota filed suit against the City of Dayton in August after the city replaced its former traffic impact fee with a deposit system. Housing First Minnesota argues that any mandate of payment violates state law. The City of Dayton was among the nine municipalities that used this unlawful funding mechanism. These fees were often collected with no clear connection to a specific project and no guidelines as to how, when or if the money would be spent. In court filings and in the Nov. 1 hearing, the City of Dayton argued that the deposit system is allowed following the Harstad ruling. Since the 2018 Harstad decision,

the City of Dayton enacted a moratorium for 10 months in September 2018, halting the approval of new subdivisions until the moratorium was lifted in June 2019. In July 2019, the City of Dayton approved a new deposit system, which requires developers to pay a “deposit” to the city for off-site traffic improvements or to enter into a traffic study and pay a fee determined by the traffic study. Under Minnesota State Law, municipalities do not have the authority to collect traffic impact fees from new home development. These fees can add thousands of dollars to the cost of new homes, apartments and senior living centers. The Minnesota Supreme Court has twice ruled against cities’ attempts to collect these fees. Judge Susan Robiner has taken the matter under advisement and a formal ruling had not been issued at the time of printing.

GET HOUSING NEWS AS IT HAPPENS: Sign up at HousingIndustryNews.org City of Dayton’s impact fee was heard in court on Nov. 1.

Housing affordability and how it’s changed in the Twin Cities Longtime builder Betty Hardle shares her biggest concerns for the future of homeownership When Betty Hardle started building homes with her husband in the 1970s it was a different era in homebuilding. The biggest change she’s seen since then is the price point at which you could build homes and the number of families that could afford them. “We focused on what we called first-time homebuyer homes. We call them affordable houses now,” said Hardle. “They aren’t nearly the same today. We used to build a 1,200-squarefoot rambler with no garage. That was our entire inventory of what we built, and ordinary working people loved it and could afford it.” The homes that Hardle started out building are no longer built in Minnesota today. Those entry-level, modest square footage homes on small lots are simply not part of the array of homes offered in growing cities. Most cities won’t allow it with their planning and zoning, and most builders cannot build homes that small because the development costs preclude projects at that price point. “It isn’t just cities and permit fees; that’s just part of it. Part of it is the codes, and part of it is the MUSA line that made land more expensive,” explained Hardle. “There’s nothing left for builders to really do but complain, so pardon us if we complain.” She has seen first-hand how costs have been added to the construction of new homes over the years. With the lack of homes priced under $300,000 across the housing market, she longs for the day when builders could reach all price points. “Every other recession we were brought out of the recession by the homebuilding industry, and that wasn’t the case this time, because we couldn’t do it,” said Hardle. “I think what people don’t understand about housing affordability, it’s not that builders don’t want to build affordable houses, it’s that they can’t build affordable homes. Financially it can’t be done, with all the costs that go in before you even cover the costs to build the house, you can’t build anywhere in the Twin Cities SIGN UP TO BE A PART OF THE HOUSING MOVEMENT • HOUSINGINDUSTRYNEWS.ORG

for under of $350,000. Something’s got to happen, that has got to change.” Hardle’s biggest concern is what will happen when more families are forced out of the housing market and homeownership altogether. “Having been a teacher and school counselor before I was a builder, I can tell you having a stable home, a good school to go to and a safe neighborhood, that’s what makes a good family and good future citizens,” said Hardle. As much as she is concerned, she is also hopeful that local

Betty Hardle started Good Value Homes with her husband in the early 1970s.

and state leaders will start to understand the issues surrounding building affordable homes in Minnesota and take action. “We want to do the right thing, and we want to build houses for everyone that wants to own a home, and organizations like Habitat for Humanity can’t do it all by themselves,” said Hardle. “I think legislators usually want the same things we want. They were elected because they want to make it a better Minnesota, but they don’t know the details of what we are seeing in the housing industry. We’ve got to spread the details to our city leaders and legislators, so they know what is going on.”

One of Hardle’s entry-level homes built in early 1980s.

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HOUSING ON THE HILL

Legislators hold building permit profit hearing, renew call for audits and refunds

Members of the Senate Select Committee on Homeownership ask questions of testifiers during their September hearing.

Following the August release of the Housing Affordability Institute’s report Building Permit Fees: Boosting the Bottom Line for Minnesota Cities, legislators immediately called for audits and refunds to overcharged homeowners. Days later, the Star Tribune published a story featuring an email from the state’s leading building officials in which they state that cities “got their hand caught in the cookie jar.” “We all have to agree we know it has been happening. We all know that when we said something about it [it] fell on deaf ears,” James Williamette, chairman of the Association of Minnesota Building Officials, wrote to the group’s board members—most of them city building officials—regarding the prior day’s news conference at the Capitol. “We all know that pushing this issue with management was always difficult and a few of our peers were let go over this.” Following the release of this story, State Rep. Jim Nash (Waconia) renewed his call for a thorough audit to be conducted. “The emails confirm that it had been practice for cities to overcharge for permits, raising the costs of new homes by thousands of dollars, and totaling $80 million over the last five

The day after the Star Tribune article was years alone based on publicly available docupublished, the Senate Select Committee on ments,” said Rep. Nash. “State law is clear: building permits should Homeownership Affordability and Availnot be a revenue-generating source for cit- ability held a hearing to dive deeper into the report. Housing First Minnesota’s executive ies. The Department of Labor and Industry director, David Siegel, is clear: building perand the author of the mit finances should be “Permits are a fee-for-service, report, Nick Erickson, segregated from other not a cash cow for local testified. city funds. What is not “We were the first clear is why cities have governments. We found cities, folks, probably in the strayed so far from the in their own publicly available law and guidance prostatements and plans, openly state, to dig into this data over the past 20 vided by the Departcelebrating and utilizing years. And what we ment on this issue. A permit fees for special found was startling. full audit of this pracprojects and transfers to the From scant compliance tice is needed, which is to excess revenue, many why I have requested general fund—both of which cities are not followboth the State Audiare counter to state law.” ing state law and DLI tor Julie Blaha and the David Siegel guidance,” stated ErLegislative Auditor HOUSING FIRST MINNESOTA ickson as he introduced Jim Nobles look into the research. cities breaking the law “Permits are a feeon this issue. We have a housing affordability crisis in our state and if for-service, not a cash cow for local governments. We found cities, in their own publicly cities are adding, unnecessarily and illegally, to that burden, it needs to end and homeowners available statements and plans, openly celebrating and utilizing permit fees for special are due a refund and an apology.”

projects and transfers to the general fund— both of which are counter to state law,” Siegel stated. In defense of cities reporting excess revenue from building permits, a lobbyist from the League of Minnesota Cities, Irene Kao, stated, “If you only take a look at the building permit fees and expenses, they’re right. If you take a look at that, it looks like the city has ‘made money.’ But if you look at the other things that are happening at development, administrative expenses, engineering expenses, planning and zoning expenses, if you take that into consideration … it looks about equal.” “Efforts by local government groups to confuse permits, a statutorily mandated fee-forservice, with development infrastructure that is often not even related to residential projects is not only a distortion of growth costs and affordability, it’s deeply offensive to the homeowners that are paying these illegal fees,” Siegel countered. “As we look at about three dozen affordability roadblocks, building permits ought to be an easy start.” Have a story idea for this publication? Let us know! Send your story to info@housingfirstmn.org

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HOUSING INDUSTRY NEWS

| 9

HOUSING ON THE HILL

An update from the White House with Commissioner Scott Schulte On June 25, President Donald Trump established a first-of-its-kind committee. By executive order the White House Council on Eliminating Regulatory Barriers to Affordable Housing was created and Housing and Urban Development (HUD) Secretary Ben Carson was tasked with leading the council. The executive order in part read, “Driving the rise in housing costs is a lack of housing supply to meet demand. Federal, state, local and tribal governments impose a multitude of regulatory barriers—laws, regulations, and administrative practices—that hinder the development of housing.” Since June, the council has been working to identify these barriers and find ways to reduce the obstacles to building affordable housing. One of the members sitting on the newly formed council is Anoka County Commissioner Scott Schulte. He has served on the Anoka County Board since 2013 and represents portions

of Andover, Anoka and Coon Rapids. He is also the current president of the Association of Minnesota Counties.

brought on by local regulations, restrictions and permitting. Has anyone shared any good practices of what may be working in other parts of the country?

What is the makeup of the council?

A: About 30 folks, mostly mayors and county commissioners from around the country. A good mix of rural/urban/suburban. Why did President Trump and Secretary Carson form this group?

A: We were convened to isolate regulations that impede the construction of affordable housing units. Secondly, to make recommendations to what could be eliminated to further that cause. What has the committee identified as major obstacles facing the housing market?

A: Land costs are a major obstacle, often times

A: In the first meeting a number of groups shared best practice for land banks and land trusts. It was a bit ambiguous but shows promise in certain situations and areas. What proposals and initiatives should we expect when your work is finished?

A: Dr. Ben Carson seems very serious about regulatory reform as it relates to affordable housing. His deliverables with this committee seem to be based in Federal Regulatory Reform as it relates to real projects in the states. We will be sending a list to President Trump of recommended reforms that he can implement via executive order.

Commissioner Scott Schulte

TRACK THE CONVERSATION ON TWITTER: @HousingFirstMN #MNHomeownership

Housing First Minnesota honors 2019 Legislators of the Year Housing First Minnesota, the state’s leading voice for housing, recognized Sen. Rich Draheim (Madison Lake) and Rep. Jim Nash (Waconia) as recipients of the 2019 Housing First Minnesota Legislator of the Year Award. The honor recognizes legislators for their efforts in promoting housing affordability and homeownership opportunities. “At a time when Minnesota faces one of the country’s worst housing affordability and availability problems, Sen. Draheim and Rep. Nash have played key roles in advancing homeownership opportunities for all Minnesotans,” said David Siegel, executive director of Housing First Minnesota. One of the key pieces of housing legislation signed into law during the 2019 legislative session was the creation of the Legislative Commission on Housing Affordability. As newly appointed members of this commission, Sen. Draheim and Rep. Nash have initiated much-needed conversations addressing the dozens of roadblocks that face Minnesota’s broken housing market. “Our Legislator of the Year Awards recognize both Sen. Draheim and Rep. Nash as housing champions who understand that homes are the backbone of strong communities,” said John Rask, president of Housing First Minnesota and Vice President of Land for M/I Homes. “They understand the urgency in confronting and removing obstacles currently facing homebuyers, and we thank them for their efforts at the Capitol.” The awards were presented during Housing First Minnesota’s annual Building Industry Gala on Oct. 25.

National housing discussion makes first stop in Minneapolis The housing shortage and affordability crunch in Minnesota continues to make headlines and stir public discussion. On Nov. 18, The Hill hosted the first of several planned stops across the country to highlight this growing topic. The event included one-on-one discussions with Minnesota House Minority Leader Rep. Kurt Daudt (Crown) and Rep. Mohamud Noor (Minneapolis). Daudt highlighted why it is more expensive to build homes in Minnesota compared to everywhere else in the Midwest, naming the many government policies and regulations that are hindering more affordable production. “In other cities, if you have to get water or environmental permits, it’s one permit in one agency. In this state it’s five agencies and they each require a permit and they each require engineering,” Daudt stated.

Sen. Rich Draheim, Madison Lake

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HOUSING INDUSTRY NEWS

“Ninety percent of Minnesotans want to own a home. We need to make that as accessible as possible so everybody can participate in that. Homeownership is a phenomenal thing for a community, for the stability of a community and the stability of a family.” Rep. Noor echoed many of these sentiments saying, “If regulations are in the way we should get rid of them.” He also called for greater involvement to help those seeking housing and considering implementation of rent control. The event also included a discussion with Minneapolis Mayor Jacob Frey and Minneapolis City Council President Lisa Bender about the Minneapolis 2040 plan that includes ending single-family zoning. The Hill’s Building the Dream event was sponsored by the National Association of Home Builders.

Rep. Jim Nash, Waconia

CONTINUED FROM PAGE 1

While on-site at a new D.R. Horton neighborhood in September, senators identified tens of thousands of dollars in burdensome government fees, regulations and policies that are adding on to the price of homes. The committee continued its work in October with three site visits. Specifically, the committee visited Carpentry Contractors Co. (CCC), a 350-employee company based in Montrose that provides professional residential builders prebuilt wall and floor panels for the construction of new homes. The prebuilt components, constructed using green processes, reduce jobsite waste 75% and speed up on-site construction by 25%, ultimately resulting in more homes in inventory, which will help in price moderation. “As we continue to focus on increasing affordable homeownership in Minnesota, the ability to see firsthand innovative solutions that reduce costs for builders and consumers will allow our committee to better understand what legislative changes need to take place,” said Sen. Rich Draheim. While at the CCC production facility, the committee members viewed workers designing and building precut stair assemblies and prebuilt walls panels. CCC builds panels for up to 16 homes daily. After seeing the panels constructed, the committee stopped at a

panelization development in Minnetrista to view homes under construction that utilized the innovative process. Given the current shortage of construction labor, the less labor-intensive panel method allows contractors to increase production, thereby putting more inventory into the pool for buyers. In addition to the panelization site, committee members visited a townhome development in Maple Grove. As the committee investigates different ways to expand affordable homeownership, townhomes represent a typically less expensive option, potentially beneficial to the growing senior population in Minnesota due to less required maintenance. “While every Minnesotan benefits from affordable homeownership, we all share different needs,” added Sen. Draheim. “Using an all-of-the-above approach in tackling homeownership affordability allows us to develop a multifaceted solution that fits not only every region of our state, but individuals at all stages of life, from raising a family to retirement. I look forward to continuing our bipartisan work that aims to increase affordable opportunities for all across Minnesota.” These visits are part of the Select Committee’s work, which is expected to result in proposals in the upcoming 2020 legislative session.

“As we continue to focus on increasing affordable homeownership in Minnesota, the ability to see firsthand innovative solutions that reduce costs for builders and consumers will allow our committee to better understand what legislative changes need to take place.” Sen. Rich Draheim

The Senate Select Committee on Homeownership toured Carpentry Contractors Co. in Montrose as workers prebuilt wall and floor panels.

Senators and staff went onsite in Minnetrista to watch the panelization in action.

HOUSING INDUSTRY NEWS

| 11

MARKET REPORT

Housing market report Strong year-end finish for residential construction

State of Minnesota

New home construction is on track to finish 2019 strong. Minnesota’s residential construction saw the highest number of permitted units pulled in October since before 2003. For the month, 555 single-family permits were pulled for a nearly 20% increase over October of last year. Multifamily construction, especially in Minneapolis, had another strong month with 36 permits pulled for a total of 1,182 units. However, home prices continue to climb and inventory remains tight for firsttime buyers and downsizers throughout the state.

Moorhead

116 SOURCE: CITY OF MOORHEAD

12,706

Duluth

Year-to-Date Single-Family Construction Through Oct. 31, 2019

SOURCE: US CENSUS

St. Cloud

217 SOURCE: CENTRAL MINNESOTA BUILDERS ASSOCIATION

Twin Cities

7,844

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

Mankato

SOURCE: US CENSUS

Rochester

254

SOURCE: US CENSUS

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

OCT. 2019

$280,000

$250,000

OCT. 2018

+5.7%

+4.6%

$265,000

Y-Y Change

OCT. 2018

SOURCE: DEED

$239,000

Y-Y Change

2018

$265,000

$239,000

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 - 61

South - 54

SOURCE: DEED

Midwest - 55

Northeast - 51

Regional Remodeling Market Indicies, 2019 Q3 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.

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Minnesota Construction Employment Past 5 Months

HOUSING INDUSTRY NEWS

Employment Update Minnesota added 7,400 seasonally adjusted jobs in October while the state’s unemployment rate edged up .3% to 2.5%, according to data released by the Minnesota Department of Employment and Economic Development (DEED). The U.S. unemployment rate remained steady. October’s seasonally adjusted gain indicates that there is a high demand for workers throughout the state and across all sectors.

REALTORS® take: Sales rise along with prices New listings surged in the last quarter of 2019, up 3% statewide and up nearly 4% in the Twin Cities metro, according to the Minnesota Association of REALTORS® and the Minneapolis Area REALTORS® (MAR). As new listings hit the market, they came off just as fast. Average days on market fell statewide in October to an average of 48 days, almost 10% lower than this time last year. In the Twin Cities, average days on market declined to 46 days. The decline in the number of days spent on the market is a direct result of the very tight supply for firsttime buyers and downsizing households competing for homes under

$350,000. According to MAR, multiple offers and homes selling for over list price in record time is still common at this price point. Across the metro, counties reported strong sales price increases, with Washington County leading the pack just north of $334,000, according to MAR. Carver and Scott counties rounded out the $300,000+ club, with Hennepin, Dakota and Anoka counties close behind. Statewide, 11 of Minnesota’s 13 economic development regions saw median sales prices climb over the same period last year, with the Headwaters and West Central Regions being outliers, experiencing minor declines.

“Interest rates are boosting buyer confidence. Consumers may also be realizing that some of their fears around the market and economy could be overstated.” Todd Urbanski

PRESIDENT OF MINNEAPOLIS AREA REALTORS®

State of MN by the numbers Last quarter of 2019

+4.6% Median Sales Price

48 Average Days on Market Almost 10% lower than same time 2018

New Listings

+3% +100.2%

Closed Sales

+1.3% D L O S

Percent of Original Price Received

HOUSING INDUSTRY NEWS

| 13

MARKET REPORT

Demographics of homebuyers continue to shift

Advice from the Economist: Stop being so paternalistic! Economist Elliot Eisenberg shares his advice on why there’s no need to sound the alarm So there I am, at home, relaxing in my study in the midst of thinking about the lousy economy, the anemic number of housing starts, the troubles with Fannie and Freddie and the soaring budget deficit. Deeply concerned by all this, I close my eyes, place my feet on the hassock, turn on the radio and wait for some soothing music to wash over me and refresh my tired, stressed soul. But before the music starts comes a public service announcement or two. Oh goodie! The first tells me not to feel too secure because a Fukushima-sized tsunami is just a jolt away, and the second says that my state is suffering through the driest spring since water was invented, and that if we do not stop using water by late tomorrow morning the state will, pure and simple, dry up. Another spot reminds listeners to exercise more and eat less because obesity and diabetes are quickly becoming problems for both adults and children. Yet another spot tells the population that they are eligible for government compensation if they lived in City X or City Y between 1942 and 1955. And yet another one starts with the sweet bark of a dog but then turns sinister and warns that rabies kills and ends with an ominous admonition; A dog not immunized is a dangerous dog! Hearing a dog off in the distance I instantly flinch, wondering if it had its shots and worrying if I should ask the owner and concerned

14 |

HOUSING INDUSTRY NEWS

about what I might do if I were to see it coming right at me. Exhausted, I turn off the radio because I know what is coming next and I am already too stressed out; the 30-second spot about how hundreds of people die each year in accidents in their home—falling off ladders and into bathtubs. This is followed by another menacing spot about the need to pay attention at the wheel; not to text and drive; not to smoke; not to do drugs; not to eat raw fish; to get immunized; to adopt a pet; and on and agonizingly on. With all this evil lurking in every room, every animal, and every driver, who wants to leave the house? Then again how can you stay home when radon will kill you, your ducts are full of allergens, and an al-Qaeda terror attack is right around the corner? These radio spots represent the voice of government regulation saying “if there is not enough for you to worry about, consider this…” That’s right, if the thought of killer bees headed your way is not enough to shake you up, keep in mind the neighbor’s dog—suffering from rabies and roaming around outside, unleashed. And while I very much want to protect myself and my family from harm, it just might be the case that I am the best judge of how to do that and that using my tax dollars to remind me of every possible harmful substance

First-time homebuyers continue to make up a smaller percentage of the housing market, while the average homebuyer age inches upward, according to the National Association of REALTORS® (NAR) 2019 Profile of Home Buyers and Sellers. The yearly report revealed that first-time homebuyers remained as 33% of the market share in 2019, well below the historical average of 40%. “Prerecession, the number of firsttime buyers was higher, in part, because buyers had more options,” said NAR President John Smaby. “However, over the past few years, we have unfortunately experienced a scarcity in housing inventory, especially at the middle and lower end of the market.” NAR chief economist Lawrence Yun notes that the report reveals that buyers feel the most difficult step in the homebuying process is just finding the right home to purchase. “Low inventory conditions hurt would-be first-time buyers most,” said Yun. “Their homeownership dream and the opportunity to build wealth gets delayed until more inventory choices reach the market.” As the path to homeownership grows more difficult, the average age of first-time homebuyers rises. The

median age for first-time buyers increased to 33 years old in 2019, the highest age recorded in the series history. It’s not just first-time home buyers that are getting older. The age of repeat buyers continues to show a striking trend. The average repeat buyer was in the mid-30s in the 1980s and has now climbed to the mid-50s today. Yun says there is no area that has seen a more rapid and consistent increase than the median age of repeat buyers—which hit a record-high of 55 years old in both 2018 and 2019. As prices crept higher, Yun says the demographics of homebuyers shifted as well. “Buyers and sellers, individuals and families—they all had to adjust to changing market conditions,” he said. Another changing trend revealed in the 2019 report, fewer homebuyers are married couples. The percentage of married repeat buyers remained constant at 67%, but the share of first-time buyers who were unmarried couples rose to a historical high of 17%. Those purchasing first homes as roommates jumped from 2% to 4%—which NAR credits as another example of buyers seeking ways to overcome affordability constraints and enter homeownership.

“So while government may well continue to assail us with expensive alarmist nonsense, there is a wide swath of normalcy in the middle that is remarkable, considering everything with which we are bombarded. Elliot Eisenberg, Ph.D. ECONOMIST

and bad outcome is not just plain foolish but downright harmful, wasteful and panic inducing. I know, every government agency has a budget and the more they spend the better they look. The problem is who checks to see if these PSAs do any good? No one! So we end up spending precious resources pumping out “helpful” information with no idea of the outcome. This is like going to a restaurant and not paying attention to the cost or quality of the meal but being very satisfied because the meal was expensive. What I would instead like to see government do is spend our money based on cost-benefit analysis and with respect for the taxpayer. If that means putting out a few PSAs fine; if it means hiring more policemen, OK; and if it means cutting taxes so I can spend more of my money the way I see fit, awesome. But the notion that by simply flooding the airwaves with PSAs we will all stop whatever it is, is well, nonsense.

Given all this terrifying claptrap about what to do, what not to do and what to watch out for, it’s amazing, actually, that people are as normal as they are, what with all the threats (real and government induced) to lose sleep over—terrorists, insufficient antioxidants, drought, rabies, fear of fluoride, a lack of vitamins, H1N1, Avian flu, fear of injections, rare cancers, tapeworm and creeping socialism. So while government may well continue to assail us with expensive alarmist nonsense, there is a wide swath of normalcy in the middle that is remarkable, considering everything with which we are bombarded. The problem is I am worried sick that with a few more government sponsored PSAs the healthy normal middle will disappear! And to solve that problem, all we need is a 30-second spot…

Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net.

Multifamily construction confidence falls Multifamily builders and developers are slightly less confident about the future of multifamily construction in the third quarter of 2019. According to results from the Multifamily Market Survey (MMS) released by the National Association of Home Builders (NAHB), in November the Multifamily Production Index (MPI), which measures builder and developer sentiment about current conditions in the apartment and condo market, fell seven points to 49 compared to the previous quarter. “The overall multifamily market remains solid, but developers are moving forward cautiously to manage inventory and keep it in pace with consumer demand,” said Gary Campbell, CEO of Gilbert G. Campbell Real Estate in Lowell, Mass. and chairman of NAHB’s Multifamily Council. The overall MPI is a weighted average of three key elements of the multifamily housing market: construction of low-rent units— apartments that are supported by low-income tax credits or other government subsidy programs;

market-rate rental units—apartments that are built to be rented at the price the market will hold; and for-sale units—condominiums. The component measuring low-rent

“The overall multifamily market remains solid, but developers are moving forward cautiously to manage inventory and keep it in pace with consumer demand.” Gary Campbell,

CEO OF GILBERT G. CAMPBELL REAL ESTATE IN LOWELL, MASS. AND CHAIRMAN OF NAHB’S MULTIFAMILY COUNCIL

units fell five points to 51, the component measuring market rate rental units dropped 20 points to 44 and the component measuring for-sale units remained even at 50. The MVI, which measures the multifamily housing industry’s perception of vacancies in existing apartments remained unchanged from the previous quarter at 40,

SOURCE: NAHB

meaning more property managers believe vacancies are decreasing. “The slight reduction in the MPI is to be expected as multifamily starts were relatively high in the second quarter,” said NAHB Chief Economist Robert Dietz. “The stability of the MVI is also consistent

with the Census Bureau’s five-plus vacancy rate, which has moved very little in the last six months.” The MMS is based on a quarterly survey of NAHB multifamily builders and property managers. The survey is designed to monitor conditions for multifamily

production (starts) and multifamily rental occupancy in the current versus preceding quarter as well as in the next six months. Have a story idea for this publication? Let us know! Send your story to info@housingfirstmn.org

Remodeling outlook remains optimistic Despite a slight decline in the level of growth, remodeling activity reached new heights in the third quarter of 2019, according to Metrostudy/Zonda’s latest Residential Remodeling Index (RRI) report. The national RRI improved to a new high of 118.9 in the third quarter of 2019, marking a 0.5% gain from second quarter, and a 2.8% increase from one year earlier. The RRI has now posted 30 consecutive quarters of yearover-year increases since national remodeling

activity had bottomed in 2011; however, annual rates have cooled compared to the 5% growth that averaged the last several years. “U.S. job growth beat expectations in October and hiring in the previous two months was revised upward as the strength of the consumer continues to support the economy,” said Mark Boud, chief economist at Metrostudy/Zonda. Metrostudy/Zonda’s latest forecast calls for continued gains in remodeling activity over

the next few years, but growth is expected to remain leaner. The RRI is now projected to average year-over-year gains of 2.2% in 2020 and 2.4% in 2021. “Existing home sales continue to struggle under lack of supply, a trend that will likely continue given the low rates of new home construction, particularly at the lower price levels. Weaker employment-generated demand and low housing turnover points to slower rates of

remodeling growth compared to the last few years of booming business,” says Boud. Metrostudy/Zonda produce the RRI to provide the industry visibility into local market remodeling activity, forecasted future activity and potential demand. According to the company’s third quarter report, 380 Metropolitan Statistical Areas are expected to see growth in 2019 project volume, and among these markets, the average growth rate is expected to be 3.1%.

SOURCE: METROSTUDY

HOUSING INDUSTRY NEWS

| 15

INDUSTRY IN ACTION

Conference sheds light on latest green building trends The annual Green Path Building Conference brought over a hundred Minnesota homebuilding industry members together for a day of green homebuilding insight and inspiration. The half-day event featured speakers and panelists on the latest in green homebuilding techniques including the path to building green, the exterior wall envelope, wall insulation, and marketing and communicating your commitment to green building. According to newly released research by the Shelton Communication Group, 40% of United States consumers want to be seen supporting eco-friendly products. It’s fundamental to who they are, not just a platitude, and there is no greater expression of someone’s identity than their home. The Minnesota Green Path Conference helps the housing industry inform homebuyers about the features that make their home energy efficient, especially since most don’t know what specific features or products can result in a greener, more efficient home. The conference is required attendance for Designated Green Path Builders. These are builders who have committed to energy testing a minimum of 75% of single-family homes they build and attend annual training. Minnesota’s Green Path is the leading energy efficiency and green building program for Minnesota’s residential construction industry promoting healthy, durable, energy-efficient homes. Created by Housing First Minnesota in 2011, the program has provided Home Performance Reports to more than 21,000 newly built homes highlighting RESNET’s Home Energy Rating System (HERS) index and air exchange rate. More details about MN Green Path can be found at MNGreenPath.org.

Project Build Minnesota gains momentum As Project Build Minnesota enters its third year, momentum is building. The nonprofit was formed by Housing First Minnesota, Minnesota Builders Exchange, Associated Building Contractors and The Builders Group, and has several other industry association supporters including the Central Minnesota Builders Association, Northwest Lumberman’s Association, and the Minnesota Utility Contractors Association. Now a recognized brand in the marketplace, the organization is successfully creating interest in construction industry careers. In December, Project Build Minnesota welcomed Joy DesMarais-Lanz as its executive director. DesMarais-Lanz is chief operating officer of association management company Synergos, which is providing all administrative and leadership services to Project Build. In November, Synergos CEO Lane Velayo, CAE, assisted 2019 Project Build Minnesota President Tom Getzke in holding a strategic plan for the board of directors. Four key elements arose from the plan that will guide the efforts of Project Build Minnesota in 2020. • The first effort is to grow the available financial resources so Project Build Minnesota can continue to produce results. The nonprofit plans a golf event in 2020 as well as several targeted fundraising efforts. • The second is to continue to strengthen the general marketing effort. Project Build is now bringing in several requests a week from students interested in careers via its web and social properties and the marketing committee will grow that in the coming year. • The outreach committee has been aggressively speaking at school classrooms and attending key conferences and workshops. Plans this year include the Minnesota School Boards Association, Minnesota School Counselors Association, Builders and Remodelers Show (BRS), the Northwest Lumberman’s

Association Show and many classroom speaking opportunities. • Lastly, the training committee will be developing an interactive career tree that interested young adults can use to better understand the path to entry and growth within the construction field. In 2020, David Siegel, executive director of Housing First Minnesota will serve as Project Build Minnesota president. Getzke will serve as secretary and Robert Heise, Associated Building Contractors, will serve as treasurer. If you would like to be involved as a speaker before classrooms, make a donation to Project Build Minnesota, or serve on a committee, you are needed and welcomed. Please email David at david@housingfirstmn.org or Joy at joy@ synergosamc.com. The website for the movement is www.projectbuildmn.org. Please check out the website and follow our social properties. Joy DesMarais-Lanz

PROJECTBUILDMN.ORG

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HOUSING INDUSTRY NEWS

Homebuilding industry honored during BIG Night

James Julkowski named remodeler of the year

2019 Builder of the Year recipient Creative Homes

Curt Swanson recipient of the 2019 Robert L. Hanson Award

More than 800 homebuilding industry members attended the Building Industry Gala on Oct. 25 at Mystic Lake Center. More than 190 awards were handed out by Housing First Minnesota during the gala honoring the top builders, remodelers, suppliers and individuals in the Twin Cities homebuilding industry. Creative Homes took home the coveted 2019 Builder of the Year Award. Julkowski Inc. was named the Remodeler of the Year and Pella Windows and Doors took home the Associate of the Year Award. These top honors are selected based upon

Over 190 awards honored at the Building Industry Gala

evaluations of trust, communications, loyalty and ethics by the firms with which they do business, and in the case of Builder and Remodeler of the Year, by their customers. Other top honors awarded were the Housing Industry Leader of the Year (Sunny Bowman, Dakota County Lumber Co.), Advocate of the Year (Tony Wiener, Cardinal Homebuilders, Inc.), Building Housing First Minnesota (Kristin Reinitz, Admit One, Inc.) and Rising Star (Marla Abstetar, Kohler Co.). The Bennie Award for best new neighborhood went to Gonyea

Associate of the Year Ed Englebrect, Pella Windows and Doors

Homes for their Eastbrooke development in Cottage Grove. Robert Thomas Homes took home the Minnesota Green Path Leadership Award which recognizes innovation and leadership in building energy efficient and sustainable homes. Curt Swanson of Swanson Homes was honored with the Robert L. Hanson Lifetime Achievement Award for his legacy and commitment to the homebuilding industry. For a full list of winners and to view photos, visit BIGnightMN.org

HOUSING INDUSTRY NEWS

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INDUSTRY GIVES BACK

Housing for Heroes on Penn The Housing First Minnesota Foundation along with build partner Lennar broke ground on a new home for homeless veterans in Bloomington this November. The new, four-bedroom, single-family home will be handed over to the Minnesota Assistance Council for Veterans (MACV), which will own and operate the home. The home is just off Penn Avenue in Bloomington, and the lot was provided to the Housing First Minnesota Foundation by the City of Bloomington’s HRA. “This project is truly the result of great partnerships coming together to achieve a common goal,” said Donnie Brown, Housing First Minnesota Foundation manager. “Working together we are providing safe housing for Minnesota veterans in need.” The home will be used to house veteran men experiencing homelessness. While in the home, residents will work with MACV case managers to overcome their housing, employment and legal barriers. This critical program gives homeless veterans the support and confidence to once again find success. “We want to get to zero homeless veterans. We need more homes like this because the need is still there,” said Ed Williams, MACV metro housing manager. “We still have veterans out there on the street and that’s why it’s so important we continue to build housing like this.” This is the third house that the Foundation has built with partner Lennar for MACV.

The Housing First Minnesota Foundation and build partner Lennar broke ground on a new home for homeless veterans in Bloomington this November.

Follow the latest updates at HousingFirstMNFoundation.org Framing has begun and construction will wrap up in late January.

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HOUSING INDUSTRY NEWS

IN THE DIRT

A quick recap of housing news and development updates

SOURCE: FACEBOOK

SOURCE: BING MAPS

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SOURCE: RYAN COMPANIES

Eleven on the River breaks ground

Plymouth Golf Course redevelopment facing opposition

Apple Valley Golf Course development stalled

Ford site development moves forward

Ryan Companies and Arcadia broke ground on a 41-story condo tower in Minneapolis’s Mill District neighborhood. Upon completion in 2021, Eleven on the River will become Minneapolis’s tallest residential building, standing 550 feet. It’s being designed by Robert A.M. Stern Architects of New York. Streeter Homes and John Kraemer & Sons Custom Builders are the two exclusive builders for the 17 penthouse units.

A potential housing development on the former Hollydale Golf Course in Plymouth is facing large opposition from residents who have organized and are already canvassing against the potential development. According the Minneapolis/ St. Paul Business Journal, a purchase plan in place with the family-owned course calls for single-family homes. In total, the property encompasses about 160 acres.

The future of the former Apple Valley Golf Course lies in the hands of the city. Following pushback from neighbors, Apple Valley’s planning commission denied the owner’s land-use request for low- and medium-density housing on the 23-acre course. The owner’s most recent proposal included a half-acre for low density and 22.5 acres for medium density.

Ryan Companies unveiled its concept for the City of Saint Paul’s Ford Site Master Plan in October. The 122-acre site of the former Ford plant will include 50 acres of public open space as well as retail, office space, single-family housing, condos, senior living, affordable housing and market-rate rental housing. The project is estimated to create more than 14,000 construction jobs over the course of the redevelopment and 1,300 permanent jobs.

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