Housing Industry News Vol. 7 Issue 3 - September 2023

Parade of Homes marks 75 years of home tours

This year, the Parade of Homes celebrates its 75th anniversary.

In 1948, members of the Minneapolis Builders Association came together with the idea to promote the latest and greatest in new home design with a home tour. The “Trend Home” was constructed in the Edina Highlands neighborhood and was opened to the public during National Home Week Sept. 5-11 that year.

This collaborative effort between six builders aimed to showcase the quality and innovation in the home construction industry. Exceeding all expectations, this initial event drew in an eager crowd of visitors.

According to the Star Tribune coverage of the event, lines of visitors wrapped around the home for their chance to walk through the home. From the spectacular reception to this single-home display, the Parade of Homes was born.

“There was no stinting in the construction and furnishing of the house. It could have been built much more cheaply, but

instead it emphasizes the best possible quality of everything,” stated Harvey Ingham, a Minneapolis Tribune staff writer, in his coverage of the home.

Two years later, on Sunday, September 10, 1950, a full-page ad in the Star Tribune announced a new scattered-site home tour, put on by the Minneapolis Builders Association, billed the “Parade of Homes.” For the 10 builders who participated in the 1950 home tour, they were greeted by families lined up outside the homes.

From there, the Parade of Homes blossomed. In 1973, the then-Minneapolis Builders Association celebrated the home tour’s 25th year with pride that the tour had grown to 95 homes.

The association noted in the Star Tribune that year, “as the Parade of Homes prepares to launch into its 25th year, the many individuals, some deceased, and many firms which provided such excellent support to the promotion can be proud of the growth and success of the Minneapolis Parade of

Homes and the Minneapolis Builders Association which makes it possible.”

Noticing the success the Minneapolis Builders Association was experiencing across the river, the St. Paul Area Builders Association started its own Parade of Homes, and eventually joined forces with Minneapolis to launch a second yearly tour in the spring.

“We found that doing the Parade of Homes at the same time made sense for promoting the event,” says Bob Hanson, who was an executive for the St. Paul Area Builders Association when it merged with the Minneapolis Builders Association in 1992, forming the Builders Association of the Twin Cities (BATC).

The association continued to offer two Parade of Homes tours per year: one in the fall and one in the spring. Now, 75 years later, the Twin Cities home tour is presented by Housing First Minnesota and remains the largest and most successful in the country.

CONTINUED >> PAGE 14

New laws take effect

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Parade of Homes launches collaboration brew

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Construction continues on apartment remodel for families in need

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Builders adapt to evolving housing market

The conversation regarding the housing market is largely centered around one factor: mortgage rates. The Federal Reserve started hiking rates last year in an attempt to tamp down on growing inflation. Since then, several increases in rates have led to mortgage rates jumping to over 7%.

Consequently, the housing market has come to a standoff of sorts. Both buyers and sellers are hesitant to make a move in the face of these higher rates. Buyers are being confronted with elevated monthly payments, while many sellers are reluctant to list their homes and lock in a new mortgage at the current rates.

According to data from the Minneapolis Area Realtors, inventory of homes in the Twin Cities metro area was down 16% in July from the same time last year. Meanwhile, closed sales were down 21% for the same period.

Since the tour’s inception, hundreds of thousands of people have enjoyed the tour each year, flocking to the now-biannual event to gather inspiration and see the latest offerings from local builders.

Community celebration of homeownership

With interest rates spiking and affordability challenges impacting all corners of Minnesota, concerns about homeownership abound. This is a serious conversation for our state leaders, one that is playing out across the country. Fixing an outdated housing approval system will not be easy and will require a spirit of innovation and focus on keeping homeownership opportunities alive and communities strong.

At the center of this debate is a constant theme – the consensus popularity of homeownership. Minnesotans want to own homes, and the overwhelming body of research reveals that homeownership brings substantial social value to individuals and communities. This is a cause worthy of our state’s highest group of priorities.

Minnesota has been having this discussion for many years. In fact, 75 years ago housing industry leaders in Minneapolis came together to showcase the best in new construction. This trend home was the beginning of our nationleading Parade of Homes, an annual community celebration of homeownership.

A lot has changed in 75 years. Cities have grown and evolved, while materials and innovations have done likewise. Our economy has changed, as have the rules related to building homes and creating homeownership opportunities. These discussions continue, with another set of changes and modernization coming before us.

Throughout all of this, the timeless desire to own a home remains unchanged. This drives our industry and is the mission of Housing First Minnesota: the opportunity for homeownership for all Minnesotans.

Our Parade of Homes also remains timeless.

The Parade of Homes is many things. It’s a market-moving sales event in a convenient shopping environment. It’s the leading pathway to view and experience the latest in home technology, style and design. And, at the end of the day, it remains the ultimate community celebration of homeownership in Minnesota.

To all who have enjoyed, participated and supported the Parade Homes, thank you

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HousingIndustryNews.org

HOUSING INDUSTRY NEWS

March 2023, Volume 7, Issue 1

PUBLISHER

James Vagle

James@HousingFirstMN.org

EDITOR

Katie Elfstrom

Katie@HousingFirstMN.org

ASSOCIATE EDITOR

Laura Burt

ART DIRECTOR

Mandy Finders

ACCOUNTING

Janice Meyer

ADVERTISING SALES

Brad Meewes

and congratulations. Seventy-five years is a tremendous run, and we look forward to 75 more years of community celebration! Make it a great fall, John Q.

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THANK YOU

The Parade of Homes has a long legacy of supporting homeownership in our state. Over the past couple years, the Parade of Homes First-Time Homebuyer $10K Giveaway has made a major impact in the lives of everyday Minnesotans. These down payments were made possible through several donations from Housing First Minnesota members. We thank them for their generosity and support of creating homeownership opportunities for all.

Kori Meewes CONTRIBUTING WRITERS

Laura Burt

Laura@HousingFirstMN.org

Katie Elfstrom

Katie@HousingFirstMN.org

Nick Erickson

Nick@HousingFirstMN.org

Mark Foster Mark@HousingFirstMN.org

Kristen Ober

Kristen@HousingFirstMN.org

Kate Wigley

Kate@HousingFirstMN.org

Housing First Minnesota

James Vagle, Chief Executive Officer

John Quinlivan, Board Chair

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 homebuilding 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.

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Housing Industry News is published by Housing First Minnesota

Entire contents copyright 2023 All rights reserved

Housing First Minnesota is the voice for homebuilders, remodelers and all who are dedicated to building safe, durable homes at a price Minnesotans can afford.

Housing First Minnesota is dedicated to advancing the American dream of homeownership for Minnesotans and is the leading resource for housing-related issues in Minnesota. This 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 policies, regulations and protections, but our call for affordability for families is a voice that must be heard.

Learn more at HousingFirstMN.org.

John Quinlivan 2023 Board Chair, Housing First Minnesota

Across the country, there is much talk about housing

HERE ARE SOME OF THE LATEST QUOTES ON THE STATE OF THE INDUSTRY:

Building more homes will allow more people to find economic stability and access opportunities in the labor market, supporting economic development and households alike.

Local land use laws and zoning regulations limit where, and how densely, housing can be built. This constrains housing supply, perpetuates historical patterns of segregation, prevents workers from accessing jobs, and increases energy costs and climate risk.

BIDEN-HARRIS ADMINISTRATION

And reforming zoning laws to allow for the construction of more starter homes can help increase the supply of affordable homes in places with high economic opportunity.

DARYL

YIMBY movement is making change happen in blue states and red ones, in unified party control states and in divided states, on the coasts and in the heartland.

Zoning reform that allows more housing to be built is also a necessary step in solving the housing crisis and ensuring that everyone has a roof over their heads.

There are a hierarchy of needs around housing in Minneapolis, and aesthetics should not be near the top of that list.

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MATTHEW YGLESIAS BLOGGER AND JOURNALIST

Technical reviews begin, new stormwater permit issued, RRP and demolition rulemaking

State regulators have had a busy summer, with rulemaking progressing across the industry, including development, new construction and renovation.

New construction stormwater permit

The Minnesota Pollution Control Agency (MPCA) released a new construction stormwater permit, effective Aug. 1. Many of the changes were minor edits made to improve readability or clarity. Some of the more substantial changes include stabilization requirements for soil berms used as sediment control; more frequent inspections including photographs during de-watering activities; photographs showing final stabilization now required for permit termination; a new definition of impervious surface which excludes recreational trails; and relaxed inspections for final stabilization when establishing wildlife-friendly vegetation.

All projects granted permit coverage before Aug. 1 may continue to operate under the previous permit for 18 months. If the project extends beyond 18 months, permittees must update their Stormwater Pollution Prevention Plan to reflect the new requirements.

Technical review examines electric vehicle charger addition to commercial energy code

Earlier this year, the State Legislature directed the Department of Labor and Industry (DLI) to create a building code standard for electric vehicle chargers for buildings with four or more housing units.

In August, the technical advisory group formed by DLI began holding meetings. The technical review is expected to last through September, and the recommendation of the panel will be forwarded to the Construction Codes Advisory Council.

Residential energy code

A technical review of the residential energy code comes after an administrative law judge recommended the commissioner open rulemaking on the 2021 International Energy Conservation Code (IECC).

The technical review of the 2021 IECC will wrap shortly before the 2024 I-Codes undergo their technical reviews in advance of the 2026 code cycle. It is expected that DLI will then examine the changes in the 2024 IECC before moving on to the required durability analysis.

Due to affordability concerns, Minnesota

has not adopted a new energy code since the 2012 energy code was implemented in 2014. According to RESNET, Minnesota has continued to be a leader in energy efficiency in higher-growth states even without adopting a new energy code.

Lead renovation, repair and painting rule

For more than seven years, the Minnesota Department of Health (MDH) has been working on taking local custody of the federal lead renovation, repair and painting (RRP) rule from the Environmental Protection Association. After the State Legislature adjusted state statutes to align Minnesota State Law with the EPA requirements more closely.

The RRP rules govern the renovation of pre-1978 homes where lead paint is present.

In August, MDH held a stakeholder meeting to outline recent changes to the proposal. This was the first public meeting on the rule in nearly two years.

Greg Olson, a code official with Olson Associates Consulting, has been an active participant in stakeholder meetings. Olson said there are multiple concerns from the industry over the approach taken by MDH.

“One would think it possible for the state to simply adopt the EPA’s RRP version instead of rewriting it,” said Olson.

If this specific proposal is implemented, Minnesota’s proposed RRP rule would be the one state in which the entire rule was rewritten instead of adopting the rule by reference, in whole or in part.

MDH aims to enter the final stages of rulemaking in October and have the rule implemented by April 2024.

Demolition landfill rulemaking  Due to water quality concerns, the MPCA has proposed a new rule regulating construction demolition landfills.

The proposed rule says demolition landfills must be lined with leachate collection systems; be capped with an impermeable cover; have more stringent operating, location and closure requirements; and require groundwater monitoring and financial assurance to facilitate proper closure and to mitigate potential future liabilities.

WE

L arkin Hoffman has bee n a go-to rea l e state, land use an d c o nstruction l aw firm in Minnesota and th e Upper Midwest for over six decad e s.

Visit housingindustrynews.org for the latest information on these emerging proposals.

The technical review of electric vehicle chargers for buildings with four or more housing units is expected to last through September.

The lead renovation, repair and painting rules govern the renovation of pre-1978 homes where lead paint is present.

Case study examines impact of 2017 condo defect reforms

Housing Affordability Institute, a Twin Cities-based housing policy think tank, reviewed the impact of a 2017 state law aimed at addressing the barriers to townhome and condo construction.

In 2017, the Minnesota Legislature reformed its construction defect laws for multifamily for-ownership housing to encourage more multifamily development in growing areas. This change was connected to Minnesota’s statutory home warranty requirement.

At the time, the development community said the litigation environment prevented the construction of more for-ownership housing projects. The risk of litigation over the lack of HOA maintenance, they said, was too high on condominium and townhome projects, despite the low inventory and high demand for new housing.

According to data from the United States Census Bureau, a surge in multifamily construction followed the passage of the reforms, but the data does not track occupancy type. After examining for-ownership vs. for-rent construction in the Twin Cities tracked by the Metropolitan council, it appears that the increase in production was not tied to for-ownership.

For multifamily projects greater than five units, for-ownership production decreased after 2017 and became almost non-existent, despite the surge in multifamily construction. For townhomes, production increased, but that share of for-ownership and for-rent did not change in a meaningful way.

“Digging into the data, we can see that the reforms passed in Minnesota in 2017 did not go far enough in opening the market of for-ownership multifamily construction,” said Nick Erickson, executive director of Housing Affordability Institute.

The case study contains interviews with townhome developers that explain the increase in townhome production. These builders stated that the increase in townhome production is more related to the declining affordability in the Twin Cities region. Townhomes are the only new-home product largely available to buyers for less than $400,000, according to one builder.

“As other states look to pass multifamily construction defect reforms, they should use this report to see that leaving too much on the table can lead to a law in which not much changes,” Erickson said.

In 2017, the Minnesota Legislature reformed its condo-townhome construction defect law, but builders and developers say the reforms did not go far enough.

Minneapolis aesthetic mandate proposal pushed out after public, industry pushback

The Minneapolis Planning Commission decided to table a decision on its aesthetic mandate proposal and revisit the topic at an October meeting.

Under the proposal, buildings subject to the commercial building code, including multifamily housing, would need to consult a table to see which materials are allowed and in which applications they can be used.

The proposal would ban vinyl, except when used as trim or an accent material. The proposal stated that the “use of brick, concrete, glass and stone masonry is encouraged where practical in all exposures and elevations facing the public realm.”

While sustainability is the reason the city cited for proposing the mandate, the preference for higher-cost materials when seen from the street has drawn criticism.

During a planning commission meeting earlier this year, Madel Mouta, senior city planner for the city of Minneapolis, said that “brick, concrete, glass and stone masonry are more desirable at the base of the building, because it’s subject to more residential traffic and more susceptible to wear and tear.”

In a letter to the city, Jake Steen, an attorney representing the Safe Building Materials Association of America, highlighted that the proposal “will decrease the affordability of housing development, which undermines city goals.” Steen added that it will also impede housing access by banning more affordable construction materials.

This is not the first time the city has tried to enact aesthetic mandates. In 2021, a similar proposal failed to gain traction.

The topic of aesthetic mandates has been a conversation at the Minnesota State Capitol for the past few years, as legislators have considered preventing local governments from banning code-compliant materials.

“Minneapolis has been making headlines about the progress the city has made in embracing affordability-centric policies and ending exclusionary practices,” said Nick Erickson, executive director of Housing Affordability Institute. “This, unfortunately, takes the city in the wrong direction. Aesthetic mandates, like the ones the city is considering, are one of the most explicitly exclusionary tools.”

Erickson explained that exclusionary policies, like aesthetic mandates, are often present in either climate or public safety terms, with the end goal of increasing housing costs to price out would-be buyers and renters. These claims, Erickson explained, are often unfounded.

“As noted by media coverage and public comments, the climate and sustainability claims made by the city simply don’t pan out,” Erickson stated.

Vinyl siding, cladding banned under this proposal, has an 83% less impact on the climate compared to brick and mortar, comparable to the difference between a Ford F-150 pickup and a Tesla electric vehicle, according to data from the Vinyl Siding Institute.

The proposal will be considered at an October planning commission meeting.

The Minneapolis Planning Commission proposed ordinance aims to regulate the types of exterior materials utilized on buildings subject to the commercial building code, including multifamily housing.

New laws take effect

Over the summer, several new laws became effective in Minnesota. Here’s a quick rundown of those that impact the housing industry and associated businesses.

Contractor wage liability

Minnesota has enacted the Construction Worker Wage Protection Act, which establishes that a contractor entering into a construction contract assumes liability for unpaid

wages, fringe benefits and liquidated damages owed to a claimant by a subcontractor of any tier. The new law does not apply to work for which prevailing wage rates apply under statute sections 177.41 to 177.44. This law became effective Aug. 1.

Non-compete agreements

Effective July 1, new non-compete agreements between employers and employees, as

well as independent contractors are banned. It does not affect already-existing non-compete agreements.

Recreational marijuana

Under Minnesota’s new law legalizing recreational marijuana, individuals 21 years of age and older are allowed to possess or transport in public up to 2 ounces of cannabis flower. Additionally, Minnesotans 21 and older are able to grow up to eight cannabis plants per residence. Consumption of cannabis products will remain prohibited in all areas not

explicitly authorized by law. Many employers are working with their counsel to update their drug and alcohol testing policies.

Parental leave, pregnancy accommodations and nursing mothers

The Minnesota Parental Leave Act (MPLA) now applies to all employers with one or more employees, and employees will be eligible for up to 12 weeks of unpaid MPLA leave immediately upon hire. Additionally, changes for pregnant and nursing mothers now require all employers to provide accommodations to pregnant employees and time to express milk.

Sick and safe time & paid family leave tax on the horizon

Effective Jan. 1, 2024, Minnesota will require employers to provide paid sick and safe leave to employees who work in the state. An employee will accrue a minimum of one hour of sick and safe time for every 30 hours worked, up to a maximum of 48 hours per year.

Additionally, the new Paid Family and Medical Leave (PFML) program is in the process of being established with a rollout date of Jan. 1, 2026. All Minnesota employees will be eligible for PFML benefits if they meet the financial eligibility requirements. The maximum length of benefits is 20 weeks per year. Beginning Jan. 1, 2026, annual employer premium rates will be 0.7% for employers participating in both the family and medical benefit programs. Employers must pay at least 50% of the annual premiums with the remainder paid by employees via deduction in their wages.

Several of the laws passed during the recent legislative session have implications for the housing industry.

Housing market report

Twin Cities homebuilding picks up as rates cool existing market

Twin Cities single-family home construction recorded its first month of positive activity since January 2022 in July. Metro builders pulled permits for 446 single-family homes during the month, a 38% increase from last year. Multifamily construction, however, continued to stumble with permits pulled for 605 units, a 38% drop in units compared to last year.

Employment Update

Minnesota’s non-seasonally adjusted unemployment rate ticked down slightly to 3.2% in July, according to the Minnesota Department of Employment and Economic Development. This is compared to the June rate of 3.4%.

The national unemployment rate in July was unchanged month-over-month at 3.8%. Construction employment in Minnesota recorded a loss of 300 jobs.

More affordable housing markets among the hottest in the U.S.

While home prices dipped nationwide in June, the nation’s hottest housing markets all saw modest price growth.

The Realtor.com Market Hotness Index breaks down demand and supply by taking into account two aspects of the housing market: market demand, as measured by unique viewers per property on Realtor.com, and the pace of the market, as measured by the number of days a listing remains active on Realtor.com.

Only the Northeast and the Midwest were represented on this month’s hottest market list. The Northeast was represented by 13 markets while the Midwest boasted 7.

According to Realtor.com, 12 of June’s hottest markets had median listing prices below the national median. The lowest-priced market, Rockford, Illinois, had a median listing price of $183,500, almost 60% lower than the country’s June median home listing price of $445,000. Three-quarters of the markets priced above the national median on this month’s list still offered an affordability advantage relative to nearby metro areas.

CONTINUED FROM PAGE 1

The Hartford, Connecticut, metro ranked as Realtor.com’s hottest housing market in June.

Another factor in June’s hottest housing markets is tight inventory conditions. While the annual decline in homes for sale in these regions has been middle-of-the-pack, the number of homes for sale in the Northeast and Midwest was less than half its pre-pandemic norm in June. Realtor.com notes that

the limited options concentrate shoppers and keep housing markets relatively competitive.

According to Realtor.com, the Twin Cities metro area saw the largest increase in its hotness ranking among larger metros compared to last year, climbing 102 spots to rank as the 108th hottest U.S. market in June. In the first quarter of 2023, the Twin Cities received 42.6% of its out-of-metro attention from

Builders adapt to evolving housing market

Buyers explore new construction

Earlier this summer, there was a notable shift in market activity as more buyers turned toward new construction to fill the gap in the existing market. Builders, in response, started to ramp up production to meet demand.

Builder confidence ebbs as rates climb

viewers within the Chicago metro, according to Realtor.com’s cross-market demand data. Realtor.com notes that though Minneapolis is more expensive, on average, than Chicago, homes in Minneapolis tend to be larger, possibly attracting buyers looking for more space.

As of the second quarter of 2023, new homes made up one-third of all the homes available for sale, according to online Realtor firm Redfin. Pre-pandemic, new homes made up just 17% of the market.

Locally, homebuilders pulled permits for 446 single-family homes during the month of July, a 38% increase from 2022.

That’s good news for Minnesota’s undersupplied housing market nor for buyers who are not finding what they’re searching for in the existing segment. Additionally, buyers are discovering other benefits that come with purchasing a new home, such as rate buydowns from builders and avoiding the competitive environment of the existing market.

According to the Mortgage Bankers Association, applications for mortgages on new homes were up 35% year-over-year in July.

With demand high and the existing home supply limited, builders began to show more confidence in the market going into the summer months.

According to the National Association of Homebuilders (NAHB), builder sentiment toward the market was up in July. This monthly survey measures builder perceptions of various market factors, such as prospective buyer traffic and future sales expectations.

However, the new construction sector is not immune to the influence of rising mortgage rates. Just this month, builder confidence fell, snapping a seven-month streak of increases. According to NAHB, although demand for housing has not waned, higher rates are making for higher monthly mortgage payments and putting pressure on what buyers can afford.

“Although builders continue to remain cautiously optimistic about market conditions, the quarter-point rise in mortgage rates over the past month is a stark reminder of the stop and start process the market will experience as the Federal Reserve nears the end of the ongoing tightening cycle,” said Robert Dietz, NAHB’s chief economist.

Minnesota home sales decline as mortgage rates reach 20-year high

Even though summer is known to be the usual peak of the homebuying season, this year, buyers and sellers are hanging out on the sidelines as mortgage rates hit a 20-year high.

According to new data from Minneapolis Area Realtors and St. Paul Area Association of Realtors, through the month of July, sellers listed 5,823 properties on the market, down 16% from July 2022. On the flip side, the number of buyer purchase agreements signed decreased by 9.5%, and the number of closed sales

decreased by 21.4%. Inventory levels remain low as well, falling 16.1% from last year.

“Supply has steadily improved month-over-month, but it remains well short of what’s needed for a balanced market,” said Emily Green, president of Minnesota Realtors.

While overall sales may be decreasing, homes that are selling are doing so at a fast pace. Sales are still closing faster than the market has seen in the last five years, with a median of 12 days on

the market. Prices do seem to be flattening out slightly, with sellers accepting offers at an average of 100.8% of the listing price.

Even though home sales are slow, activity in the new construction sector is on the rise. Where existing home sales were down 13.5%, new construction home sales rose 61.8% since last year.

Larger homes in suburbs such as Mounds View, St. Anthony, and Vadnais Heights are currently buyers’ main interest, with Minneapolis sales falling 12.7%.

JULY 2023 TWIN CITIES HOUSING MARKET STATS (COMPARED TO 2022)

Sales are still closing faster than the market has seen in the last five years, with a median of 12 days on the market.

Parade of Homes marks 75 years of home tours

“The success of the Parade of Homes has helped shape the very cities we call home,” said James Vagle, CEO of Housing First Minnesota. “For 75 years the tour has invited families and friends to be inspired by homes of all sizes and prices and showcased the benefits of homeownership in our community. Organizations across the United States look to our Parade of Homes as the premier home tour event in the country.”

With the sheer number of homes in each tour and the estimated annual attendees of more than 200,000, it can be argued that the Twin Cities Parade of Homes has helped shape the entire metro area.

“The Parade of Homes was instrumental for us as builders,” said David Williams, a long-time Parade of Homes builder. “Without question, it was the number one source of sales of our homes.”

With 367 homes in the 2023 Fall Parade of Homes, the tour remains a driving force in the Twin Cities housing market.

“I still love going on the Parade of Homes to see all the new things,” said Deborah Williams, David’s wife and business partner. “It’s not intimidating, and because it has been around so long, people know the name and they know that everyone’s welcome. There are open houses, and that’s great, but that doesn’t give

you the feeling of ‘just come on in’ like the Parade of Homes does.”

The Parade of Homes invited the community to celebrate with the homebuilding industry during several events throughout the Twin Cities metro before and during the tour for the milestone anniversary. Events included a brewery bash and community pop-up events on the tour. These events serve as a testament to the Parade of Homes’ commitment to celebrating homeownership for all Minnesotans.

Parade of Homes partners with Bauhaus Brew Labs to craft 75th anniversary beer

In honor of its 75th anniversary, the Parade of Homes partnered with Bauhaus Brew Labs to craft a signature brew. Ope’n Haus is a limited edition hazy pale ale, created exclusively for this milestone anniversary. It offers a blend of floral and tropical flavors, with hints of orange and clementine.

For 75 years, the Parade of Homes has played a pivotal role in Minnesota’s housing market, guiding families in their homebuying process, and turning dream homes into reality. The name of the signature brew reflects the low-pressure, open house-style tours the Parade of Homes is known for — with a little Midwestern flair!

“We are thrilled to partner with Bauhaus Brew

Rochester Area Builders announces new executive director

The Rochester Area Builders announced Patrick Sexton as the new executive director of the 70-year-old trade association in July.

“When choosing our next leader, we placed special focus on commitment to the community, experience in the legislative space, and ability to lead and connect,” said Jason Scrimshaw, president of the association. “It was very clear to each of us that Patrick is the right person to spearhead this new chapter for Rochester Area Builders.”

Sexton joins the organization with extensive experience working in legislation at the state capitol, communications and media relations with Honeywell and West Group, public affairs consulting, and commercial real estate.

“This opportunity is an honor,” said Sexton. “Together with our members and the community, I am committed to advocating for the construction industry, building relationships with our supporters, and being a positive leader for our team.”

Industry connects on the golf course

Labs for our 75th anniversary celebration,” said Katie Elfstrom, spokesperson for the Parade of Homes.

“This collaboration is a toast to the legacy of the Parade of Homes in the Twin Cities and our ongoing commitment to building communities and creating homeownership opportunities for all Minnesotans.”

The collaboration was celebrated at the Ope’n Haus launch party on Sept. 7, where the first kegs of the home tour-inspired hazy pale ale were tapped. The special anniversary event included live music, giveaways, and food.

Ope’n Haus is available for purchase in the taproom at Bauhaus Brew Labs and Haskell’s Wine & Spirits and Top 10 Liquors during the month of September.

Housing industry members flocked to Majestic Oaks Golf Club on Aug. 3 to participate in the Housing First Minnesota Golf Open. The housing industry association hosted more than 250 golfers at the sold-out event. Members were able to network on the course while supporting the association’s mission of providing homeownership opportunities for all Minnesotans.

This year’s Golf Open winners were Paul Hanson, Justin Partee, Jesse Borg, and Curtis Gross with Connexus Energy on the Signature Course. Miles Toth and Bob Jensen with Great Northern Granite and Jed Uhlenkamp and Jesse Smith with NexGen Contracting took home the win on the Crossroads Course.

Patrick Sexton joined the Rochester Area Builders as its new executive director on July 12.

What began with as a collaboration of six member builders looking to showcase the best of what new construction had to offer has transformed into the largest and longest-running home tour in the nation.

THE FUTURE OF BETTER BUILDING IS NOW.

Every day our team of professionals is driven to be the best and deliver for our customers. We’re on a mission to develop next-generation solutions that accelerate, optimize and transform the homebuilding industry.

Through the acquisition of Paradigm, a building industry technology leader, Builders FirstSource is uniquely positioned to lead the digitization of our fragmented industry. Together, we will help homebuilders drive e iciency by reducing project costs and increasing labor productivity across the country.

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Pulte Homes golf tournament raises money for building industry nonprofit

The 13th annual Pulte Group Charity Golf Tournament took place on July 19 at Dwan Golf Course in Bloomington. This four-person scramble raised funds in support of the Housing First Minnesota Foundation’s work building much-needed housing for homeless Minnesotans.

The sold-out event welcomed more than 140 golfers to the course. After the 18-hole golf scramble, attendees joined in the clubhouse for a live and silent auction and delicious food.

“This year was truly remarkable as it yielded the highest fundraising total in our long history of sponsoring the event,” said Jamie Tharp, division president of Pulte Group, Inc. “The fact that we can all come together as partners for an afternoon in support of a deserving cause is a testament to the exceptional individuals within our industry in the Twin Cities. This event holds a special place for the PulteGroup team, and the record-setting success our industry achieved this summer makes the afternoon even more memorable.”

This year’s tournament raised $25,000 to help fund the Foundation’s build projects for Minnesotans experiencing homelessness. In total, the Pulte tournaments have raised over $225,000.

“We are extremely grateful for the funds raised through this tournament over the years,” said Jessica Ryan, executive director of the Housing First Minnesota Foundation. “It’s because of partnerships like this that we are able to build tangible housing solutions as we continue to work toward ending homelessness in Minnesota.”

The Foundation is currently building multiple Housing for Heroes homes in North Minneapolis for the Minnesota Assistance Council for Veterans (MACV). These homes, each with an accessory dwelling unit, will provide 20 additional beds for homeless veterans as they receive wraparound services from MACV. Additionally, the Foundation is renovating the final four apartments in a 100-year-old building to provide nonprofit Avivo with housing capacity for mothers to live with their children while going through addiction recovery treatment.

Custom One Charities hosts annual charity golf tournament

On July 20, Custom One Charities hosted its 7th Annual Charity Golf Tournament, a sold-out event that brought together 164 industry enthusiasts for a day of golfing, connection and generosity. The event, held at Prestwick Golf Club in Woodbury, Minn., was not only a fantastic day out on the greens but also a charitable success, raising $80,000 for important causes.

By fostering connections within communities and promoting generosity, Custom One Charities aims to create a positive ripple effect that reaches far and wide. With the funds raised, the nonprofit was able to provide its new partner, My Very Own Bed, with a $6,000 donation to provide twin-size beds and dream kits for 20 children. By partnering with and empowering respected philanthropic organizations, Custom One Charities demonstrates a collaborative approach to creating meaningful change. This strategy allows for a broader impact, leveraging the strengths and resources of multiple entities to address complex issues more effectively.

As Custom One Charities continues to champion its mission, its efforts serve as an inspiration for others to engage in philanthropic initiatives that create lasting change. With events like the annual charity golf tournament and its annual gala held in February, the nonprofit exemplifies how a collective commitment to compassion can bring about transformational results.

The sold-out golf tournament raised $25,000 to support the Foundation’s build projects for Minnesotans experiencing homelessness. Photos by Nordy Photography.

With the funds raised, Custom One Charities was able to provide its new partner, My Very Own Bed, with a $6,000 donation to provide twin-size beds and dream kits for 20 children.

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Construction continues on apartment remodel for families in need

In July, the Housing First Minnesota Foundation began the final phase of construction on a project to renovate the four remaining units in an apartment building in North Minneapolis. This endeavor is the latest and final chapter in the renovation of the entire 100-year-old building.

This Family Recovery Housing community build project will provide transitional housing to women who are in AVIVO’s addiction recovery treatment program. The local nonprofit works to help individuals achieve recovery from substance addiction by providing safe housing, education resources, and other means of support.

The remodeled units will allow these women to get the help they need while being able to live with their children and families.

This latest phase of unit renovations is being completed with build partner Nor-Son Custom Builders, Inc. Since the start of this project in 2020, Mega Remodel, Cardinal Remodeling, Plekkenpol Builders, John Kraemer & Sons, Inc. and The Kingdom Builders have renovated units in the building.

“Our community build projects are a truly unique model that impact so many lives over multiple years,” said Jessica Ryan, executive director of the Housing First Minnesota Foundation. “We are grateful to be a part of such an important project for Avivo, and for the generosity of our build partners. Without them, these build projects would not be possible.”

During the remodel, the units are completely gutted and rebuilt.

“It is a whole other feeling to live in a new, remodeled apartment,” said Tesha, an AVIVO family treatment program graduate. “It makes you feel deserving. As moms living with addiction, we don’t feel like we deserve things . . . when you move into something new, it changes you. It makes you keep going.”

The Family Recovery Housing is expected to be complete by the end of 2023. After completion, four families will call these apartments home for an average of 12-18 months.

New Minneapolis home and ADU to help veterans experiencing homelessness

The Housing First Minnesota Foundation/HomeAid Twin Cities, in collaboration with build partner Lennar, proudly handed over the keys of a brand-new four-bedroom home in North Minneapolis to the Minnesota Assistance Council for Veterans (MACV) on Aug. 23. The new home will help MACV in its mission to end veteran homelessness, a segment of the community that is in growing need of services.

Speakers at the event included representatives from the Housing First Minnesota Foundation, Lennar and MACV.

This home is the fourth project completed by the Housing First Minnesota Foundation with partners MACV and Lennar in 2023 – the biggest endeavor accomplished by the Foundation thus far. This significant milestone marks another step forward in the mission to end veteran homelessness and address the growing need for services within the community.

Speaking at the ceremony, Jessica Ryan, executive director of the Housing First Minnesota Foundation, highlighted the importance of this work for veterans in need.

“Since 2017, this partnership has constructed over 20,000 square feet of housing for Minnesota veterans,” said Ryan. “Our unique, collaborative housing model pools together the expertise, resources and philanthropic arm of the homebuilding industry and community funders.”

All four of these completed homes were also constructed with an accessory dwelling unit (ADU).

“This is the final step of an ambitious project — construction of four Housing for Heroes homes each with an ADU,” said Jim Fuschetto, 2023 president of the Housing First Minnesota Foundation. “As this home opens for veterans to live in, we are one step closer to our goal of ending homelessness in Minnesota.”

With the completion of this project, a total of 20 new beds will be made available to veterans in need. These beds provide a safe and secure environment for veterans to rebuild their lives and regain their independence.

The final phase of construction has begun on four apartment units that will provide transitional housing to women in Avivo’s recovery program. Photo by Nordy Photography.

This home is the fourth project completed by the Housing First Minnesota Foundation with MACV and Lennar in 2023.

Photo by Nordy Photography.

Development proposal revised in Eagan

Partners Enclave Cos., Pulte Homes and Lifestyle Communities proposed their revised plan to the Eagan City Council for a 482-unit development on a 34.5-acre site in July. According to a city staff report, Enclave Cos. would build a 280-unit apartment building, Lifestyle Communities would build a 66-unit senior cooperative and Pulte Homes would build 40 twin home units and 96 townhome units. The new proposal was reduced by 54 units down from the original proposal presented last fall, but the Eagan City Council stated the proposal still needed more work and was tabled to a September agenda.

The city’s 2040 Comprehensive Plan clearly states the priority for a “diverse mix of housing types and values throughout the community to accommodate the housing needs of persons of all incomes in all stages of life and physical ability.” The reality is there are still roadblocks at every turn, even in cities with more progressive zoning. Paul Heuer, Pulte’s director of land planning and entitlement, told the City Council last fall that the development team has “worked really hard . . . to comply with many of the goals laid out” in Eagan’s 2040 Comprehensive Plan.

Largest 3D-printed neighborhood in the world materializing in Texas

Texas is leading the way in 3D home innovation as it prepares to unveil the world’s largest community of 3D-printed homes in Georgetown, Texas. Partners on the project include homebuilder Lennar, Texas construction firm ICON and Danish architecture firm Bjarke Ingles Group. The neighborhood will be ready to welcome residents to the first 100 homes in Wolf Ranch this fall. These three- to four-bedroom homes range in price from $475,000-$599,000 and are between 1,500 and 2,100 square feet.

Your building industry association.

The 91-year-old State Office Building, home to the House of Representatives’ offices and many committee hearing rooms are located, is moving forward with a full renovation and addition, pending an environmental review. The plan proposes a top-to-bottom facelift on the existing 290,000-square-foot space as well as a substantial addition of a 120,000-square-foot area. The massive price tag of the project has drawn some controversy. Those in support of the pricey project argue the aging building has been a challenge to manage for years and tout the renovation as a long-term fix. Those opposed argue that $500 million would be better spent elsewhere.

“If you put it into perspective of our priorities, we have 8,000 homeless people in the state of Minnesota,” Rep. Kurt Daudt (R-Crown) told Finance & Commerce in January. “You could take care of half of that homeless problem with this number. At $150,000 per unit of affordable housing, you could build 3,333 units of affordable housing with that money.”

SOURCE: CNN

State Office Building $500 million renovation under review

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