The Digest | Jan-Mar 2023

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Housing Market Recap Changes to the 45L Tax Credit JANUARY-MARCH 2023 Digest THE 2022 Industry Award Winners 10 YEARS of Artisan Home tour
D E S I G N S T U D I O I N T R O D U C I N G O U R N E W s c h w i e t e r s c o m p a n i e s . c o m 6 1 2 . 6 6 9 . 8 8 4 4 c a r l y @ s c h w i e t e r s c o m p a n i e s . c o m Schedule a visit today
JANUARY–MARCH 2023 HOUSING FIRST MINNESOTA The Digest 1 HOUSING FIRST 4 From the Board Chair John Quinlivan discusses coming together as an industry in the new year 5 2023 Board of Directors Introducing the association’s 2023 Board of Directors 6 Elite Sponsors Thank you to our industry partners UP NEXT 8 Events See what’s coming up next for industry events 9 Need to Know A quick look at what’s going on at your association IN THE INDUSTRY 12 Advocacy in Action From regulatory affairs to an unexpected election, catch up on the latest advocacy news 16 Industry Data Recap of the 2022 housing market BUSINESS TIPS 18 45L Tax Credit The 45L federal tax credit encourages builders and developers to build energy-efficient homes by rewarding them with tax credits 22 A Decade of Artisan A look back at ten years of home tours 28 Q+A: Ask the Building Inspector What to know before building a tuckunder garage BUILDING FUTURES 31 From the Foundation Executive Director Contents JANUARY-MARCH 2023 16 18 38

Board of Directors

EXECUTIVE BOARD

BOARD CHAIR JOHN QUINLIVAN, Gordon James

VICE PRESIDENT ART PRATT, Pratt Homes

TREASURER TIM FOHR, Lennar

ASSOCIATE VICE PRESIDENT DALE LOEFFLER, Marvin

SECRETARY PETER MARTIN, Pella Windows & Doors

IMMEDIATE PAST PRESIDENT JAMES JULKOWSKI, Julkowski, Inc.

PAST ASSOCIATE VICE PRESIDENT SUNNY BOWMAN, Dakota County Lumber Company

BOARD + COMMITTEE CHAIRS

ADVOCACY CHAIR TONY WIENER, Cardinal Homebuilders, Inc.

AMBASSADOR CHAIR KRISTIN REINITZ, Admit One Home Systems

ARTISAN HOME TOUR CHAIR AMY HENDEL, Hendel Homes

LARGE VOLUME BUILDERS CHAIR JAMIE THARP, Pulte Homes of Minnesota, LLC

PARADE OF HOMES CHAIR SARAH DULONG, Ron Clark Construction

PAST PRESIDENT REPRESENTATIVE MEG JAEGER, Mega Remodel

REMODELERS CHAIR ANDY MICHELS, Michels Homes

SMALL VOLUME BUILDERS CHAIR KIRK VAN SLOOTEN, Denali Custom Homes, Inc.

MEMBER AT-LARGE KARYN BRADDOCK, Anchor Builders, LLC

MEMBER AT-LARGE JOHN KRAEMER, John Kraemer & Sons, Inc.

Staff

EXECUTIVE LEADERSHIP

CHIEF EXECUTIVE OFFICER JAMES VAGLE

ASSOCIATION STAFF

SENIOR DIRECTOR, MEMBER ENGAGEMENT & DEVELOPMENT SARAH ADAMS

MEETINGS & EVENTS MANAGER MELISSA ANDRISANI

EDUCATION & SPECIAL EVENTS COORDINATOR MARY BETH BLOM

EDITOR & GRAPHIC DESIGNER LAURA BURT

MEMBER SERVICES COORDINATOR KIM CARTER

DIGITAL GRAPHIC DESIGNER EMILY DOHENY

VICE PRESIDENT, PUBLIC AFFAIRS KATIE ELFSTROM

SENIOR DIRECTOR, HOUSING POLICY NICK ERICKSON

VICE PRESIDENT, LEGISLATIVE & POLITICAL AFFAIRS MARK FOSTER

VICE PRESIDENT, EVENTS & WORKFORCE INITIATIVES TOM GAVARAS

SENIOR DIRECTOR, FINANCE TAMMI HALL

SOCIAL MEDIA COORDINATOR SARAH HINDERMAN

ADVERTISING & SPONSORSHIP SALES KORI MEEWES & BRAD MEEWES, and more by Kori

CHIEF OPERATING OFFICER JANICE MEYER

PROJECT MANAGER OF THE HOUSING FIRST MN FOUNDATION ERIN MILBURN

COMMUNICATIONS & POLICY COORDINATOR KRISTEN OBER

VICE PRESIDENT, SALES & MARKETING DAWNITA PARMELY

MEETINGS AND EVENTS COORDINATOR MARY CATHERINE PENNY

EXECUTIVE DIRECTOR OF THE HOUSING FIRST MN FOUNDATION JESSICA RYAN

CREATIVE SERVICES & TECH COORDINATOR CASEY SCOZZARI

ADVERTISING & SPONSORSHIP FULFILLMENT COORDINATOR LAURIE SPARTZ

EXECUTIVE COORDINATOR KATE WIGLEY

2 The Digest HOUSING FIRST MINNESOTA | JANUARY–MARCH 2023
Digest
The Digest magazine is an official publication of Housing First Minnesota. The Digest is published and distributed four times per year to members of Housing First Minnesota and others associated with the housing industry. Neither the advertisers, nor Housing First Minnesota, will be responsible or liable for misinformation, misprints, typographical errors, etc., herein contained. For advertising rates, resource files or address change information, contact Housing First Minnesota. Suggestions, ideas and letters are welcome. If circumstances require, Housing First Minnesota reserves the right to increase or decrease the number of The Digest issues published on an annual basis. CONTACT US 2960 Centre Pointe Drive, Roseville, MN 55113 • 651-697-1954 • HousingFirstMN.org 22 48 32 Foundation Board of Directors Meet the leadership team of the Housing First Minnesota Foundation 33 Project Update Building Strong Futures Through Housing MEMBERS ONLY 38 Member Spotlight: Fall Award Winners Congratulations to our 2022 Award Winners 48 Homeownership Dream Come True Second winner of the Parade of Homes First-Time Homebuyer $10K Giveaway closes on her home 50 Photo Galleries Clay Shoot BIG Night State of the Industry 56 Member Benefits 57 In the Media 58 Member News 59 New Members & Recruitment ON THE COVER: REFLECTING ON A DECADE OF THE ARTISAN HOME TOUR
THE

Coming Together in 2023

I’m honored and humbled to lead Housing First Minnesota, a truly remarkable collection of companies that make up our association. Representing you all as your 2023 Housing First Minnesota board chair is an incredible opportunity to help our organization carry out its critical work of defending our industry, advocating for homeownership opportunities, producing nationleading home tours, and connecting our members. As we look forward to the year ahead, we know there will be challenges, including the economic landscape around us, the ongoing regulatory challenges impacting our ability to deliver for our customers, and a host of workforce and supply chain issues that continue to impact us.

In the face of those challenges, I remain incredibly optimistic about our association and our ability to tackle these challenges. This optimism comes from my many years as a member and after several years on our board of directors where I have seen first-hand the strength of our staff and member leaders working together to execute our strategic plan.

Housing First Minnesota has grown into a national leader among homebuilder associations. We are proud of the work we do to support and elevate the housing industry, and I’m committed to carrying on the legacy of strong leadership at our organization.

This success is not possible without the contributions of our membership. Whether you have been involved for decades or just joined us, you are critical to our success and positive impacts. Our work to build, remodel, and supply projects for homeowners is critically important to not only our customers, but to the community which benefits tremendously from the positive impacts of homeownership.

Thank you for all that you do and for your dedication to the industry!

Make it a great year,

4 The Digest HOUSING FIRST MINNESOTA | JANUARY–MARCH 2023
FROM THE BOARD CHAIR
JOHN QUINLIVAN 2023 HOUSING FIRST MINNESOTA BOARD CHAIR
JANUARY–MARCH 2023 HOUSING FIRST MINNESOTA The Digest 5 * Denotes executive board PAST ASSOCIATE VICE PRESIDENT* Sunny Bowman Dakota County Lumber Company ADVOCACY CHAIR Tony Wiener Cardinal Homebuilders, Inc. AMBASSADOR CHAIR Kristin Reinitz Admit One Home Systems ARTISAN HOME TOUR CHAIR Amy Hendel Hendel Homes LARGE VOLUME BUILDERS CHAIR Jamie Tharp Pulte Homes of Minnesota, LLC IMMEDIATE PAST PRESIDENT* James Julkowski Julkowski, Inc. PAST PRESIDENTS’ ADVISORY COUNCIL Meg Jaeger Mega Remodel REMODELERS CHAIR Andy Michels Michels Homes SMALL VOLUME BUILDERS CHAIR Kirk Van Slooten Denali Custom Homes, Inc. AT-LARGE MEMBER Karyn Braddock Anchor Builders, LLC PARADE OF HOMES CHAIR Sarah Dulong Ron Clark Construction AT-LARGE MEMBER John Kraemer John Kraemer & Sons, Inc. THANK YOU to our association’s elected volunteer leaders for their dedication to advancing homeownership for all Minnesotans. Board of Directors 2023 HOUSING FIRST MINNESOTA 2023 BOARD OF DIRECTORS VICE PRESIDENT* Art Pratt Pratt Homes BOARD CHAIR* John Quinlivan Gordon James ASSOCIATE VICE PRESIDENT* Dale Loeffler Marvin SECRETARY* Peter Martin Pella Windows & Doors TREASURER* Tim Fohr Lennar OUR MISSION Homeownership opportunities for all Minnesotans

Elite Sponsors

Housing First Minnesota’s success would not be possible without the support of our Elite Partners. Thank you to our biggest associate sponsors!

Housing First Minnesota benefits tremendously from the proud legacy of dedicated industry suppliers who are committed to the success of builders and remodelers and our mission to grow homeownership opportunities for all Minnesotans. Many of our suppliers show this commitment by becoming Elite Partners. This exceptional level of commitment enhances our programs and events. We thank them for their commitment to the association and our builders and remodelers.

Our Elite Partners embrace the challenges and opportunities at Housing First Minnesota, with the knowledge that a single sponsorship or advertisement doesn’t maximize impact on their businesses. They understand that it takes consistent involvement over time and that their partnership and commitment to the industry is recognized by their builder and remodeler partners.

Our role as the leading voice and industry defender would not be possible without our Elite Partners. If you are a builder or remodeler, keep these highly committed partners in mind as you consider supplier partners for your business.

Thank you, Elite Partners, and best wishes for a great 2023!

6 The Digest HOUSING FIRST MINNESOTA | JANUARY–MARCH 2023 SPONSORS
JOHN QUINLIVAN 2023 BOARD CHAIR , HOUSING FIRST MINNESOTA
DIAMOND
JAMES VAGLE CHIEF EXECUTIVE OFFICER, HOUSING FIRST MINNESOTA GOLD PLATINUM WWW .T ILESHO P. COM SILVER BRONZE
Top Quality Building Products and Exceptional Services BUILDING MATERIALS • CABINET DESIGN • WINDOWS & DOORS • DRAFTING & DESIGN • FREE DELIVERY Get a Quote Today! www.abc-clc.com Visit our showrooms at any of our 14 locations to check out our top brands like Marvin.

Builders & Remodelers Show

The Builders & Remodelers Show (BRS) is back and better than ever! This trade show brings together builders, remodelers, business leaders, innovators, and purchasing influencers from across Minnesota in search of new products, creative solutions, and reliable services.

February 16, 2023

Housing Day at the Capitol

Legislators need to hear from you on the challenges of inventory and affordability. Housing Day at the Capitol has always played a meaningful role in connecting our message with the voices and faces of the housing industry who can add a personal story to each issue.

March 6, 2023

Spring Parade of Homes

There is no better opportunity for members to showcase new homes to qualified homebuyers than our Parade of Homes tour. Hundreds of new homes across the Twin Cities are open Thursdays-Sundays from noon-6 p.m.

March 4-April 2, 2023

Spring Remodelers Showcase

The Remodelers Showcase is recognized as the premier tour of remodeled homes in the area. This powerhouse brand is highly regarded and well known by Twin Cities residents and offers unparalleled exposure throughout the region. Visit the remodeled homes open across the Twin Cities for three days from noon-6 p.m..

March 31-April 2, 2023

Housing First Minnesota Foundation Gala

Join us for a night of generosity as the industry comes together to support our Foundation’s work building and remodeling transitional housing for Minnesotans experiencing homelessness. Inspirational stories, dinner, drinks, dancing, and live and silent auctions will make the night exceptional. Be the difference — make an impact.

April 14, 2023

FIND THE ENTIRE 2023 EVENT CALENDAR & REGISTER ONLINE AT HOUSINGFIRSTMN.ORG/EVENTS

FIND DETAILS & REGISTER AT BRSMN.org

FIND DETAILS & REGISTER AT HousingDayMN.org

PLAN YOUR TOUR AT ParadeofHomes.org

PLAN YOUR TOUR AT ParadeofHomes.org

FIND DETAILS & REGISTER AT FoundationGala.org

8 The Digest HOUSING FIRST MINNESOTA | JANUARY–MARCH 2023
UP NEXT
Events UPCOMING

Need to Know

Green Path Designated Builder

Become an industry leader with the Designated Green Path Builder program. Enjoy recognition in both building industry and consumer marketing, and gain access to exclusive Designated Green Path Builder program benefits.

DETAILS AT MNGreenPath.org

Housing Industry News

Spring Award Deadlines

Your hard work deserves recognition!

Enter the Housing First Minnesota awards program that recognizes excellence in several areas — from quality and value of construction to business ethics. Enter so we can celebrate the fine work you do!

DETAILS AT HousingFirstMN.org/Awards

Spring Reggie Entry: Closed

Spring Trillium Opens: February 3, 2023

Spring Trillium Entry Due: March 10, 2023

CATCH UP AND SUBSCRIBE AT HousingIndustryNews.org

Online Contractor University Classes

Housing First Minnesota’s statewide industry newspaper has expanded its online presence with an all-new website! Read the latest Housing Industry News articles and tune into the weekly Industry Minute videos. SPONSORED BY

Earn your continuing education credits through Contractor University’s online and live webinar courses. With more than 40 courses available, you’ll find specialized classes that provide useful and practical knowledge to apply to your business.

COURSE DETAILS AND REGISTRATION AVAILABLE AT ContractorU.com

JANUARY–MARCH 2023 HOUSING FIRST MINNESOTA The Digest 9
UP NEXT
SPONSORED BY
10 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023
housing
Thursday, February 16 , 2023 • 1-6PM Canterbury Park Expo Center, Shakopee, MN You Asked. We Listened. BRS is back & better than ever!
After a two-year break, Housing First Minnesota’s Builders and Remodelers Show (BRS) is returning — redesigned and more impactful than ever. As the largest products and services show for builders and remodelers in the Midwest, BRS not only exhibits the latest products in the market, it gets you face-to-face with the experts to gain knowledge, network and make connections. Build connections! BRS draws hundreds of
industry members together to connect and collaborate.
can attend? Attendees are limited to builders, remodelers, architects, interior designers, building officials, and their staff. Bring your whole team! Students are also welcome. Show highlights: • FREE admission and plenty of FREE parking • NEW location with an exhibition hall full of exhibitors featuring the latest products and services • One FREE drink ticket for every attendee to be used at the Beer Garden (good for beer, wine, or soft drink) • Genius Huddle featuring discussion-driven sessions with industry leaders • Workforce resource area • FREE headshot station PRESENTING SPONSORS ARROW BUILDING CENTER JEFF BELZER’S ACTIVATION HEADSHOT STATION CITYSCAPE PAINTING CONTRACTORS, INC. LP BUILDING SOLUTIONS TWIN CITIES CLOSET COMPANY WATER DOCTORS WATER TREATMENT CO. BEER GARDEN SPONSORS WORKFORCE SPONSOR SHOW SPONSORS Details & registration: BRSMN.org Genius Huddle Sessions: Brand Your Band: How Branding Can Sell Without You Mark Williams, Mark D. Williams Custom Homes, Inc. Builder vs. Sales: Time to Call a Truce! Joe Braun and Danielle Yegge, Style & Structure Customer Relations: Handling Conflict & Keeping Clients Happy Courtney Ernston, Midwest Business Law, PLLC Leadership & Hiring: How to Have HighPerforming Teams in a Difficult Labor Market Jerry Olson, The Resultants AUTO SPONSOR
Who

Advocacy In Action

Regulatory Affairs Update

Energy Code

In October, Judge Eric Lipman issued a non-binding recommendation that the commissioner of the Department of Labor and Industry open rulemaking on the residential energy code. James Vagle, CEO of Housing First Minnesota, sent a letter to the agency’s temporary commissioner recommending that rulemaking be postponed until the next code cycle.

Vagle highlighted Minnesota’s ranking as producing the most energy-efficient homes among high-production state as the reason that a new energy code is not needed at this time. As of printing, DLI has not announced whether the commissioner will open rulemaking or wait until the 2024 I-Codes are reviewed.

Electrical Code

In mid-December, the Board of Electricity wrapped its technical review of the 2023 National Electrical Code (NEC). Over the course of four meetings, the technical review committee examined every proposed change of significance and walked through cost analyses submitted by the Board of Electricity and Housing First Minnesota.

Because of Housing First Minnesota’s efforts, the Board of Electricity has undertaken a far more rigorous technical review of the NEC than it has previously. Final outcome of the 2023 NEC was not available at the time of printing.

12 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023
ADVOCACY IN ACTION Continues page 14

Elections 2022: An Unexpected, Historic Result

As the results poured in on election night, Minnesotans were trying to understand what exactly was happening. While DFL Gov. Tim Walz was expected to win, both legislative chambers slightly favored Republicans.

As more races started to post complete results, it became apparent that the momentum was with Democrats across the board. To see the party in control of the White House appear to have a good night is a rarity in a midterm election.

But it was a theme that played out in other parts of the country and especially the Midwest – both legislative chambers in Michigan flipped from Republican to Democratic. The predicted red wave never surfaced. Instead, following a roughly eight-point victory for Walz, and earning slim majorities in both legislative chambers, the Minnesota state government will experience a DFL trifecta for the first time since 20132014.

Despite losing a handful of incumbents in Greater Minnesota, the House DFL was able to win enough suburban seats to maintain the exact same margin they previously held at 70-64. And the Senate DFL squeaked by with a razor-thin margin of 34-33 by keeping seats in St. Cloud and Moorhead, while picking up seats in Lino Lakes and Rochester.

Additionally, DFL incumbents were able to maintain their grasp on the additional constitutional offices of secretary of state, attorney general, and auditor. Republican Ryan Wilson lost to DFL incumbent Julie Blaha by less than 10,000 votes in the auditor’s race. This was the closest a Republican has come to winning a statewide office since 2006.

The new legislature and constitutional officers take the oath in January, with more than 25% of the members serving their first terms. In all, 61 of the 76 Housing First Minnesota PAC-endorsed candidates won their election, including members in all four of the caucuses.

14 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023
ADVOCACY IN ACTION
OF HOUSING FIRST MINNESOTA PAC-ENDORSED CANDIDATES WON THEIR ELECTION 80%

New Faces Among Legislative Leadership

In the days following the election, each legislative caucus held its own internal meetings to nominate its leaders. Three of the four leaders will be brand new to the role. House Speaker Melissa Hortman (DFLBrooklyn Park) will be the only leader with prior experience, after being nominated to serve her third term as speaker. On the other side of the aisle, Rep. Lisa Demuth (R-Cold Spring) will lead the minority caucus, replacing Rep. Kurt Daudt (R-Crown).

In the state Senate, Sen. Kari Dziedzic (DFL-Minneapolis) will replace the retiring Democratic Senate leader, Sen. Melisa Franzen (DFL-Edina). Sen. Mark Johnson (R-East Grand Forks) will replace Sen. Jeremy Miller (R-Winona) as the leader of the Republican Senate caucus.

Additional caucus leaders that have been announced as of print include:

• Rep. Jamie Long (DFL-Minneapolis) as House Majority Leader

• Rep. Athena Hollins (DFL-St. Paul) as House Majority Whip

• Rep. Paul Torkelson (R-Hanska) as House Deputy Minority Leader

• Sen. Bobby Joe Champion (DFL-Minneapolis) as Senate President

• Sen. Lindsey Port (DFL-Burnsville) as Chair of the Senate Housing Committee

• Rep. Mike Howard (DFL-Richfield) as Chair of the House Housing Committee

• Sen. John Marty (DFL-Roseville) as Finance Chair

• Sen. Ann Rest (DFL-New Hope) as Tax Chair

What to Expect in the 2023 Legislative Session

As in every odd year, the top priority of the 2023 legislative session will be to set a budget for the biennium. Additionally, the state government currently has the largest surplus ever with at least $7 billion. Options for what to do with those dollars include tax cuts, rebates, the creation of new government programs, and one-time infusions into existing programs.

Other policy items expected to be discussed over the course of the five-month session include paid family leave, marijuana legalization, abortion, and more. Housingrelated items will range from housing subsidies, impact fees, zoning discussions, independent contractor definitions, green energy initiatives, and more.

“Homebuyers are experiencing a number of obstacles at the moment,” said Mark Foster, vice president of legislative and political affairs at Housing First Minnesota. “The legislature has an opportunity before them to significantly address some of these issues through much-needed generational policy reforms.”

“Housing is and always has been a bipartisan issue,” Foster adds. “Your Housing First Minnesota advocacy team stands ready to defend housing and address threats to homeownership during the upcoming legislative session.”

JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 15 ADVOCACY IN ACTION
The legislature has an opportunity before them to significantly address some of these issues through muchneeded generational policy reforms.”
REP. MELISSA HORTMAN (DFL-BROOKLYN PARK) REP. LISA DEMUTH (R-COLD SPRING) SEN. MARK JOHNSON (R-EAST GRAND FORKS) SEN. KARI DZIEDZIC (DFL-MINNEAPOLIS)

2022 Housing Market Recap

The several rate hikes by the Federal Reserve in 2022 had a drastic impact on the overall housing market as mortgage interest rates soared to a 20-year high. Many homebuyers were forced to the sidelines of the market as interest rates doubled in a 12-month period. With a larger share of homebuyers now unable to purchase the housing market stumbled.

Permits

Permits for new single-family homes in the Twin Cities metro area ended the year down just over 22% as of November 2022. The 5,168 permits pulled for new single-family homes year-to-date through November, was the lowest number of permits for the area since 2016.

While the construction of new singlefamily homes was down, multifamily construction of apartments surged in 2022, bringing the total number of units for the year to the highest number since 2005.

Sales, Inventory, and Prices

For several years, low interest rates have shielded the market from its serious housing affordability issues. With rates up, it’s clear housing affordability is holding back homebuyers and the market. According to the Minneapolis Area REALTORS (MAR), by October 2022 buyers were facing monthly payments that were

16 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023 INDUSTRY DATA
Twin Cities Single-Family Permits (January-November 2022) 2022 5,168 2021 6,651 Median Twin Cities Home Price (Oct. 2022) 2022 $356,002 2021 $340,000 Twin Cities Multifamily Permits (January-November 2022) 2022 10,477 2021 6,858

about 35% higher than last year. With this, pending sales in the Twin Cities fell 37.7% to 3,611 purchase agreements in October. The Twin Cities has not seen a yearover-year decline in demand this substantial since the summer of 2010, according to MAR.

Inventory levels remain tight despite the slowdown in the market. The softening in demand has been met with a similar decline in new listings, keeping the balance relatively tight. Month’s supply of inventory rose 26.7% to 1.9 months of supply, which is still far from the 5 months of supply needed for a balanced market.

The median home price in the Twin Cities increased by 4.7% to

$356,002. While up, the increase is down from double-digit price gains in 2020 and 2021.

Homebuyers

According to the National Association of REALTORS (NAR) annual Profile of Homebuyers and Sellers, the 2022 housing market saw drastic shifts in the makeup of homebuyers. First-time buyers made up just 26% of all buyers, down from last year’s 34%. This is the lowest share of first-time buyers since the data collection began.

That’s not all that has changed. The typical first-time buyer was 36 years old this year, rising from 33 last year, while the typical repeat

buyer age climbed to 59 years. Both are all-time highs. Sixty-one percent of recent buyers were married couples, 17% were single females, 9% were single males, and 10% were unmarried couples. This is the highest share of unmarried couples recorded.

Join housing industry professionals as we gather in support of Minnesota’s housing industry.

Housing Day at the Capitol serves as a way for you to get involved and hear from industry leaders and legislators on key housing issues at the Capitol. It is more important than ever that we work with lawmakers to remove the roadblocks that stand in the way of building new housing in our state.

- CAPITOL SPONSOR - - ADVOCATE SPONSORSALL, INC.

LYMAN COMPANIES SCHERER BROS. LUMBER CO.

JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 17
INDUSTRY DATA
LATEST
AT BLOG.HOUSINGFIRSTMN.ORG
SEE THE
HOT SHEET
want more Market data? MARCH 6, 2023 ST. PAUL EVENT CENTER REGISTER AT HOUSINGDAYMN.ORG

ARE YOU READY FOR CHANGES TO THE 45L TAX CREDIT?

The Inflation Reduction Act, signed by President Biden in August 2022, updates and changes the requirements to Section 45L of the IRS code. The 45L federal tax credit encourages builders and developers to build energy-efficient homes by rewarding them with tax credits.

BUSINESS TIPS
Continues page 20
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For houses or townhomes that sold in 2022, the previous requirements of the 45L tax credit were extended. A house can earn a $2,000 tax credit if, according to IRSapproved software, it is 50% more efficient than the 2006 International Energy Conservation Code.

Starting January 1, 2023, the 45L Tax Credit changes to $2,500 for a house or townhome that is certified with the ENERGY STAR Residential New Construction Program or $5,000 for a house certified as Zero Energy Ready Home (ZERH) by the U.S. Department of Energy. There are differing tax credit amounts and certification programs for apartments and condos.

The first step in earning the $2,500 tax credit and getting a house ENERGY STAR certified is to visit the ENERGY STAR Residential New Construction Program Requirements website and use the map to determine what version of ENERGY STAR you should be following. Minnesota is currently following ENERGY STAR version 3.1 Rev 11.

While on the site you should also download the main documents and checklists, including:

• Program Requirements

• Water Management System Builder Requirements

• HVAC Design Report

• Rater Design Review Checklist

• Rater Field Checklist

The next step is to meet with your Home Energy Rating System (HERS) rater and review the house’s design to ensure the house is eligible to be certified and meets or is below the target energy use.

One of the main items to pay attention to is the requirement for Reduced Thermal Bridging from the Rater Field Checklist. For exterior walls, there are options for rigid foam, using SIPS, ICF, double-wall construction, or

advanced framing. Most builders choose the advanced framing option to reduce lumber and have more insulation in the walls. This should be noted on a house’s plan and communicated to the framing contractor.

The HVAC installer and designer also play a critical role with ENERGY STAR certification. Prior to construction, the HVAC designer should perform heating and cooling load calculations and design the ductwork and ventilation system per the ENERGY STAR requirements.

There are two paths for certification depending on the HVAC installer. The first path is using a credentialed HVAC ENERGY STAR contractor, and the second path is using a non-credentialed contractor. Most HERS raters recommended using a credentialed HVAC contractor to ensure all the program requirements are fully understood and accounted for. If a non-credentialed contractor is chosen, there is an option for the HERS rater to do some extra testing on the HVAC system to ensure the installation meets the design.

To earn the $5,000 tax credit for ZERH, the house is required to be ENERGY STAR certified. Additionally, there are some more stringent energy-efficiency requirements. Some changes may also have to be made to the hot water delivery system and you may be required to account for a future photovoltaic install.

The initial work to certify houses may seem cumbersome and intimidating. However, the updated 45L tax credit is good through the year 2032. So, some upfront work can pay dividends for years to come. If you have any questions, follow up with your HERS rater.

20 BUSINESS TIPS
THE 45L TAX CREDIT AND ENERGY STAR CERTIFICATION RICK COBBS, THE ENERGY NETWORK WW COURSE INSTRUCTOR CONTRACTORU.COM
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A decade of Artisan

Tour-goers explore wb builders’ 2022 Artisan Home Tour entry.

For 10 years, Twin Cities design dilettantes have been flocking to Housing First Minnesota’s Artisan Home Tour to get a taste of the local luxury homebuilding industry. From gourmet kitchens and marble-clad bathrooms to floor-to-ceiling fireplaces and indoor athletic courts, this curated selection of new builds and remodeled spaces shows tour-goers what’s possible when you work with a custom builder and cross the million-dollar threshold. It’s aspirational — no matter if you’re attending the tour to gather ideas for your own luxury build or simply for the entertainment of walking through a show-stopping home.

“That was my story,” recalls Amy Hendel of Hendel Homes, Housing First Minnesota’s 2022 Builder of the Year. “When I was a little kid, I would go along with my parents to the Parade of Homes in Chicago. You would dream. I think that’s fun for people, whether or not they can afford it. To be able to walk through a home like that is incredible.”

Now, Hendel is on the other side, working with her husband Rick Hendel and their team to craft luxury homes that delight and inspire.

That’s the hallmark of the Artisan Home Tour. “It’s a high-quality product,” says Hendel, who is chairing the Artisan Home Tour committee for 2023. “We do have a level of home that is expected. We don’t want to let people down.”

As the Artisan Home Tour gears up to celebrate its 10th anniversary this year, read on to learn more about its history, how it has become a must-see tour in the Twin Cities, and what’s planned for the 2023 tours (yes, you read that right!).

JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 23 BUSINESS TIPS
Continues page 24

A TOUR FOR BUILDERS, BY BUILDERS

Although the Artisan Home Tour is a relatively new event in the Twin Cities, Housing First Minnesota has been operating home tours for more than 70 years. In 1949, the association introduced the Parade of Homes to the region for the first time, and it has since evolved into the largest tour of its kind in the country.

While the Parade of Homes is Housing First Minnesota’s signature event, featuring hundreds of new and remodeled homes twice per year, the association’s memberbuilders craved a separate tour for their projects over $1.5 million.

“It really came as a request from our members saying, ‘You do a great job with the Parade of Homes. Would you consider doing another tour to showcase these high-end homes?’” explains Tom Gavaras, Housing First Minnesota’s vice president of events and workforce initiatives, as well as operations manager for the Artisan Home Tour. “It’s able to serve our members and also provide a showcase for those types of homes in a more exclusive setting.”

In the first year of the Artisan Home Tour in 2014, 25 homes were presented, a number that has remained pretty consistent through the past decade to maintain the tour’s boutique, exclusive feel. Many of the same builders return year after year to showcase their latest projects, which must meet certain criteria — determined in cooperation with the builder committee based on the cost of homes and materials — to be considered for inclusion on the tour. For 2023, new builds must have a structure-only value of at least $1.5 million or $350 per square foot, and

24 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023 BUSINESS TIPS
Continues page 26
Swanson Homes’ home entry from the first Artisan Home Tour in 2014. First guidebook cover from the 2014 Artisan Home Tour. Most recent guidebook cover from the 2022 Artisan Home Tour. Visitors connect with the team at Highmark Builders, Inc.’s 2021 Artisan home entry. Exploring the design details from the 2022 Artisan Home Tour.

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remodeled projects must total no less than $500,000 or $300 per square foot.

“[The association] is always striving to make it a better event for the consumer. We want them to come out to our homes and enjoy the experience. Then it’s up to us to put out a great product that gets them excited about potentially building,” says Swanson Homes owner Curt Swanson, one of the builders who initiated the Artisan Home Tour and has been a participant nearly every year. “It’s one thing to see a pretty picture and another thing to actually walk through that kitchen or sunroom and see what it really looks like.”

Offering tour-goers the opportunity to meet with builders and see their work firsthand is one of the biggest benefits of the Artisan Home Tour. “In many cases, the home that a builder features the next year is from someone who came through the tour the previous year,” says Gavaras. “Or they may

say it’s not the right time to build a multi-million-dollar home, but they come back five years later saying, ‘Now I’m ready — from a lifestyle standpoint, from a financial standpoint, from a family standpoint — to upgrade and build a luxury artisan home.”

TWICE THE LUXURY

Every year since its inception, the number of combined visits to homes on the Artisan Home Tour has hovered around 50,000. But Housing First Minnesota is hopeful that number will double in 2023 when, for the first time in the tour’s history, two Artisan Home Tours will be presented: one in June and a second in October.

“To be in a tour that’s so successful and continues to build for 10 years is a testimony to the people that put it on,” says Hendel. “Housing First Minnesota is such a strong organization, and its support for builders is incredible.”

The collaboration with and feedback from builders prompted

the addition of a second tour in 2023. The idea for a fall event was sparked in 2020, when pandemic restrictions pushed the Artisan Home Tour from June to October. Because of the positive feedback from builders and tourgoers on the timing of the tour, it was decided to bring back an October event, giving builders two opportunities — and, therefore, more flexibility with the timing of the completion of their homes — to be part of the Artisan Home Tour. “It seems like there’s a lot of interest from builders, and many have already signed up, so I’m confident it will be a successful year,” says Swanson. “As builders, we all compete against each other, yet we get together and we work hard to make an event that we can all be successful at. You get to know the other builders and you appreciate what they do. I think it helps make for a much better housing environment for the Twin Cities.”

26 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023
BUSINESS TIPS INTERESTED IN ENTERING OR SPONSORING THE 2023 ARTISAN HOME TOUR? Contact Kori Meewes (Kori@ HousingFirstMN.org) or Brad Meewes (Brad@HousingFirstMN. org) for more information.
Tour-goers flip through the pages of the Artisan Home Tour guidebook.

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Ask the

Building Inspector

Scenario

A design for a new house in Minnesota includes an attached tuck-under garage (the code typically refers to this as “an unconditioned space”) with living space above, such as a family room, bathrooms, bedrooms, and similar spaces. What follows are some of the building code and energy code issues typically encountered. Refer to Image 1.

The floor trusses need to be designed to carry a uniform live load of 40 pounds per square foot for most uses, although sleeping rooms can be designed for 30 pounds per square foot live load. Plus, 10 pounds per square foot dead load of the actual building materials (International Residential Code Table R301.5).

Refer to the manufacturer of the floor trusses for engineering recommendations. Refer to Image 2.

28 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023
Q. What size of engineered floor trusses are needed to clear-span an entire garage space, as this would most likely exceed the capability of solid sawn wood joists?
IMAGE 1

Q. What type of fire protection is required on the bottom side of the floor trusses and on the garage walls below?

The bottom of the floor trusses are to be protected with properly fastened 5/8-inch-thick Type “X” gypsum board or equivalent. The walls below supporting this floor system are to be protected with properly fastened 1/2-inch-thick regular gypsum board or equivalent (IRC Table R302.6).

Q. Are the joints in the gypsum board required to be fire-tapped?

No, there are no provisions in the code that require the joints in the gypsum board to be mudded or taped. This fire separation is not a tested/listed assembly.

Q. What amount of insulation (R-value) is needed in the floor trusses because of the conditioned space above? Refer to Image 3.

The energy code requires an R-value of at least 30 in Minnesota Climate Zones 6 and 38 in Climate Zone 7 (MR1322, Section R402 and Table R402.1.1).

Q. Is a vapor retarder (often incorrectly referred to as a vapor barrier) required for this R=30 insulation in the floor trusses?

No, the code only requires a vapor retarder on the warm side of insulated walls and ceilings, but specifically exempts floor systems above unconditioned spaces. Refer to image 3.

Q. The floor trusses above the garage line up with the floor trusses adjacent in the house that carry the second floor. Are the floor trusses required to be draftstopped or fire-blocked within the floor truss space above the common wall that separates the house and garage? We have heard in the past from some sources that this space needs to be sealed. Refer to Image 4.

No, the floor trusses above the garage can be completely open to the floor trusses in the house permitting the free flow of air between the house and garage floor trusses. Keep in mind that the

JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 29
Q+A
2
3 IMAGE 4 Continues page 30
IMAGE
IMAGE

code only requires draft-stopping of floor trusses so no area of the floor within those trusses exceeds 1,000 square feet. This draft-stopping can typically be placed at other locations within the floor system to accomplish this requirement (IRC Section R302.12).

Q. When warm-air ducts are installed within the floor trusses above the garage, does the code require these ducts to be insulated, sealed, or raised up above the bottom of the floor trusses? Refer to Image 5.

These warm-air ducts need to be insulated to a minimum R-value of 8. They are required to be sealed at all transverse and longitudinal joints and where they penetrate the floor sheathing. Although these ducts are typically installed above the R=30 blown-in insulation, the code permits these ducts to be installed within the insulation itself (MN Mechanical Code Chapter 1346).

Q. At what point in the construction process would blown-in insulation be installed in the floor trusses above this tuck-under garage?

Generally, after the plumbing, electrical, and ductwork are in place, the ceiling of the garage is netted and the installer

blows the insulation in through the netting. Check with your local building inspector about the timing of this process, as the framing still needs to be inspected.

Q. Does this process change if the design calls for spray-applied foam insulation in the floor truss cavity instead of blown-in insulation?

The process would most likely involve spraying the foam insulation from below onto the bottom side of the floor sheathing. Check with the manufacturer of the foam insulation regarding the application limitations, flame spread rating of the foam, and if any special conditions are noted in related product evaluation service reports. IMAGE 5

30 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023
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The Future of Your Foundation

OUR MISSION

OUR VISION

We do a fantastic job at advancing partnership-driven community build projects by constructing and renovating supportive housing for nonprofit organizations serving vulnerable individuals and families at risk for or currently experiencing homelessness.

As we enter 2023, the housing shortage in the Twin Cities metro will continue, along with skyrocketing rent and home prices, leaving many low-income individuals and families unable to afford permanent housing.

On any given day more than 5,000 people are experiencing homelessness within the seven-county metro, 56% of whom cite difficulty finding affordable housing as a primary contributing factor. This is a problem, and our industry has the capacity to do something about it.

We will be integrative, creative, flexible, and adaptive with our strategic focus in 2023. This will help support our mission to end homelessness through the vitality of six focus areas:

1. Selecting the highest quality of homeless care provider agencies and the most appropriate construction projects to ensure impact.

2. Ensuring the financial viability of Housing First Minnesota Foundation.

3. Recruiting outstanding industry and civic leaders with the appropriate skills and passion for the support of our mission.

4. Elevate the profile of the Foundation within the industry, with key influencers, and to an ever-broadening audience.

5. Ensure fiscal soundness.

6. Strengthening integration and collaboration with the Housing First Minnesota association.

The Housing First Minnesota Foundation works to build futures through housing for Minnesotans. We are committed to raising funds and leveraging the expertise and resources of Housing First Minnesota builder, remodeler, and associate members to create housing for people in crisis in our community.

BUILDING FUTURES
We partner to build safe housing for Minnesotans in need of shelter
End homelessness in Minnesota

Board of Directors

IMMEDIATE PAST PRESIDENT Kate Hamilton Custom One Homes BOARD MEMBER Bill Burgess Lennar HOUSING FIRST MINNESOTA IMMEDIATE PAST PRESIDENT James Julkoski Julkowski, Inc. BOARD MEMBER Bob Bennett PRESIDENT Jim Fuschetto ABC Millwork & Cabinetry VICE PRESIDENT Meg Jaeger Mega Remodel TREASURER Jeremy Larson Hampton Companies, LLC SECRETARY Sunny Bowman Dakota County Lumber Company BOARD MEMBER Steve Dobin Old National Bank BOARD MEMBER Rachel Julkowski Julkowski, Inc. BOARD MEMBER Ricky Cheath Movement Mortgage BOARD MEMBER Amy Hendel Hendel Homes BOARD MEMBER Tim Liester BOARD MEMBER Jennifer McAlpin McAlpin Marketing BOARD MEMBER Ken Oetjen Lyman Lumber Co. BOARD MEMBER Kathy Raph Gotcha Covered North Suburbs THANK YOU to our Foundation’s volunteer leaders for their dedication to building futures through housing.
BUILDING FUTURES
2023 HOUSING FIRST MINNESOTA FOUNDATION

Building Strong Futures Through Housing

The clang of a hammer and the hum of a saw are the sounds of hope for some Minnesota veterans who are looking to build new beginnings. What started as four vacant lots in North Minneapolis will soon be a safe place for veterans experiencing homelessness to take a deep breath, exhale, and learn how to dream again.

Building four consecutive homes with four accessory dwelling units (ADUs) on four empty lots is a first for the Housing First Minnesota Foundation, Minnesota Assistance Council for Veterans (MACV), and Lennar partnership. Construction on the first two homes started in the fall of 2022. Two more homes will be under construction this winter. All four homes will be completed in 2023.

Over the past five years, this partnership has built seven homes, but the latest four consecutive Housing for Heroes community builds are a massive undertaking. This project will add 20 more beds for unhoused veterans to the 31 that we’ve already constructed, bringing our total to more than 50 beds. Currently, there are 272 individuals on Minnesota’s homeless veteran registry. This number does not count veterans who might be couch surfing or who might be in other unstable housing arrangements.

Housing impacts everyone. And when it’s not available, the effects on families and individuals are devastating. It’s heartbreaking to think of the obstacles standing in their way.

If you want to help us continue to build and renovate homes to end homelessness in Minnesota, please consider donating to the Foundation.

WE ARE LOOKING FOR COMMUNITY BUILD PARTNERS!

JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 33 BUILDING FUTURES
futures
HousingFirstMNFoundation.org build projects. We are always looking for partners — builders, remodelers, and trade partners — to help us build and remodel homes for Minnesotans experiencing homelessness. Learn how you can be a Foundation build partner and make a positive impact in the community. CULTURED MARBLE, GRANITE & ONYX VANITY TOPS | WALL PANELS | WINDOW SILLS SHOWER BASES View our Elite Granite Series and Designer Edges at centralmarbleproducts.com 320-393-2085 | Rice, MN WE MANUFACTURE AND INSTALL OUR PRODUCTS! OUTSTANDING QUALITY AND SERVICE SINCE 1976 MEMBER OF Central Marble_Q1-Dig23.indd 1 12/13/22 12:57 PM
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| All courses approved for Minnesota Contractor and Remodeler credits.

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COURSES APPROVED BY:

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AWARD WINNERS

CONGRATULATIONS TO OUR 2022 AWARD WINNERS!

These awards recognize excellence in several areas, from quality and value of construction to business ethics.

Hendel Homes is committed to uncompromising quality through their highly detailed residences. With an enthusiastic, collaborative team and innovative experience, they partner with clients to discover and elevate their style of life.

They have an unparalleled level of discernment that is matched only by their dedication to the highest standards of quality and transparency. By providing a unique kind of value engineering, they meet targeted budgets without sacrificing quality or aesthetics.

Team members from Hendel Homes are on multiple committees within Housing First Minnesota and the Foundation — including the Foundation board of directors. They are deeply involved in giving back and take an active role in local and global community services.

Revision is a leader among Minnesota’s custom home renovators and remodelers. The team is committed to delivering the highest quality of service, process, and finish level in all their projects. They are dedicated to their clients and to delivering projects through a consistent process and plan, but most critically, through their people.

Revision sees every renovation and remodeling project as an opportunity to bring their clients’ visions and dreams to life, and they respect and honor that opportunity.

They are committed to uplifting the Foundation through their entries in the Artisan Home Tour and giving back by using their talents; for every home remodeled in Minnesota, they donate a home in Guatemala and visit annually to oversee the work.

38 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023 MEMBER SPOTLIGHT
BUILDER OF THE YEAR: Hendel Homes REMODELER OF THE YEAR: Revision, LLC

Minnesota Construction Law Services specializes in providing business, legal, and practical advice to contractor clients. They understand the nuts and bolts of the construction and small-business world and provide their advice through those lenses. Their team has been an active member of Housing First Minnesota for many years, participating on committees, getting involved with multiple events, and supporting the Foundation. They believe strongly in the mission of Housing First Minnesota and have brought forth several ideas to the association focused on the housing affordability crisis, overregulation, and new ways of promoting the industry within the legislature.

Sen. Jeff Howe (right)

For many years, Sen. Jeff Howe (R-Rockville) has been a champion of the housing industry in St. Paul. As a building official, he acutely understands the obstacles that face the industry and homebuyers. During the legislative session, Howe was a leader in the local government committee, advocating for homebuyers and finding ways to reduce housing costs.

Rep. Steve Elkins (left)

Late in 2021, Rep. Steve Elkins (DFL-Bloomington) introduced the most comprehensive housing legislation in decades. His Housing Affordability Act would modernize Minnesota’s land use practices, stop mandates for luxury material upgrades, restore reasonable homeowner choice and end zoning by loophole. Thanks in part to efforts from Elkins, the cost drivers that go into building starter homes received more legislative discussion than the state has seen in many years.

JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 39 MEMBER SPOTLIGHT Continues on page 40
ASSOCIATE OF THE YEAR: Minnesota Construction Law Services, PLLC LEGISLATORS OF THE YEAR: Sen. Jeff Howe Rep. Steve Elkins BENNIE AWARD RECIPIENT: The Shores of Marsh Lake Charles Cudd Co., LLC | Victoria
40 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023 Continues on page 42
ADVOCATE OF THE YEAR: Paul Heuer, Pulte Homes of Minnesota, LLC BUILDING HOUSING FIRST MINNESOTA: Rebecca Remick, City Homes, LLC ROBERT L. HANSON LIFETIME ACHIEVEMENT: Gary Horkey, KEY LAND HOMES
McDonald Design | Build | Renovate
ROBERT
L. HANSON LIFETIME ACHIEVEMENT: Ron Clark, Ron Clark Construction MINNESOTA GREEN PATH LEADERSHIP:
MEMBER SPOTLIGHT
RISING STAR: Madeline Landis, All, Inc.

in a Reggie-winning home.

42 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023 Reggie
remodelers
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winners are selected by judging teams of builders and
who visit homes within each category and judge based on excellence in design, construction quality, and value. Trillium Awards are presented to all entered participating associates
JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 43 $600,000 TO $699,999 Johnson Reiland Builders & Remodelers, Inc. #90 | Elko New Market | Builds 1-49 Homes/Year Trillium Partners: Glowing Hearth & Home; RJA Cabinetry & Design; Scherer Bros. Lumber Co.; Southern Lights $700,000 TO $799,999 Robert Thomas Homes, Inc. #104 | Chaska | Builds 50+ Homes/Year Trillium Partners: All, Inc.; Contract Interiors, Inc.; Fireside Hearth & Home $700,000 TO $799,999 Lee Lyn Construction, LLC #122 | Waconia | Builds 1-49 Homes/Year Trillium Partner: Glowing Hearth & Home; Metro Air $800,000 TO $899,999 Norton Homes, LLC #137 | Eden Prairie | Builds 1-49 Homes/Year Trillium Partner: Fireside Hearth & Home $600,000 TO $699,999 RT Urban Homes, Inc. #183 | St. Michael | Builds 50+ Homes/Year Trillium Partners: All, Inc.; Ambiance at Home; Contract Interiors, Inc.; Fireside Hearth & Home; LDM Electric; Martha O’Hara Interiors; Southern Lights; Stainbrook Communications $800,000 TO $899,999 Robert Thomas Homes, Inc. #297 | Lake Elmo | Builds 50+ Homes/Year Trillium Partners: All, Inc.; Ambiance at Home; Andersen Windows; C&J Stoneworks, Inc.; Contract Interiors, Inc.; David Charlez Designs; Fireside Hearth & Home $900,000 TO $999,999 Kohaven #243 | Andover | Builds 1-49 Homes/Year Trillium Partners: Croix Design & Drafting, Inc.; MEMBER SPOTLIGHT Continues on page 44 $900,000 TO $999,999 Robert Thomas Homes, Inc. #283 | Hugo | Builds 50+ Homes/Year Trillium Partners: All, Inc.; Contract Interiors, Inc.; Fireside Hearth & Home; LDM Electric
44 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023 $1 MILLION UP TO $1.2 MILLION Stonegate Builders #110 | Victoria | Builds 50+ Homes/Year Trillium Partners: All, Inc.; Andersen Windows; Contract Interiors, Inc.; Fireside Hearth & Home; MCI Paint & Drywall; Pella Windows & Doors $1.2 MILLION UP TO $1.5 MILLION Stonegate Builders #112 | Victoria | Builds 50+ Homes/Year Trillium Partners: All, Inc.; Andersen Windows; Contract Interiors, Inc.; Fireside Hearth & Home; Muska Lighting $2 MILLION AND ABOVE Zawadski Homes, Inc. #271 | Shoreview | Builds 1-49 Homes/Year Trillium Partners: Andersen Windows; Fireside Hearth & Home; Muska Lighting; Scherer Bros. Lumber Co.; Schwieters Companies, Inc.; Warners’ Stellian Appliance $1.5 MILLION UP TO $2 MILLION Hanson Builders, Inc. #149 | Plymouth | Builds 50+ Homes/Year Trillium Partners: Contract Interiors, Inc.; LDM Electric; Pella Windows & Doors; Schwieters Companies, Inc. $1.2 MILLION UP TO $1.5 MILLION Kootenia Homes #329 | Woodbury | Builds 1-49 Homes/Year Trillium Partners: A J Berger Construction, LLC; All, Inc.; Andersen Windows; Contract Interiors, Inc.; Fireside Hearth & Home; Muska Lighting; Scherer Bros. Lumber Co.; Schwieters Companies, Inc.; Twin Cities Closet Company $1 MILLION UP TO $1.2 MILLION TJB Homes, Inc. #247 | Ham Lake | Builds 1-49 Homes/Year Trillium Partners: All, Inc.; Andersen Windows MEMBER SPOTLIGHT
JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 45 The
of Merit Awards
remodeler
quality and value
remodeling,
needs, desires, and
AWARD WINNERS
CONTINUED ADDITION: $300,000 AND OVER Alma Homes, LLC Chanhassen Trillium Partners: Andersen Windows; Renovation Systems; Warners’ Stellian Appliance BATHROOM: $60,000 AND OVER McDonald Remodeling, Inc. Inver Grove Heights Trillium Partners: CAMBRIA; Scherer Bros. Lumber Co. ADDITION: UNDER $300,000 Style & Structure Woodbury Trillium Partner: A J Berger Construction, LLC BATHROOM: UNDER $60,000 Michels Homes Arden Hills Trillium Partners: CAMBRIA; MCI Paint & Drywall COMMERCIAL Julkowski, Inc. Red Lake Trillium Partners: Brush Masters, Inc.; Warners’ Stellian Appliance DETAILED COMPONENT Ispiri, LLC Stillwater Trillium Partner: Scherer Bros. Lumber Co. MEMBER SPOTLIGHT Continues on page 46
Remodeler
(ROMAs) recognize our
members for
in remodeling projects that range from baths, kitchens, and additions to whole-house remodels. Entries are judged on creativity in meeting the unique challenges of
and in successfully meeting the
budgets of their clients. Trillium Awards are presented to all entered participating associates in a ROMA-winning home.
|
46 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023 INTERIOR: UNDER $200,000 Gordon James Orono Trillium Partner: Scherer Bros. Lumber Co. KITCHEN: $65,000 UP TO $115,000 Style & Structure Minnetonka Trillium Partner: A J Berger Construction, LLC KITCHEN: UNDER $65,000 Great Northern Builders, LLC White Bear Lake LOWER LEVEL: UNDER $125,000 Michels Homes Arden Hills Trillium Partners: Manomin Resawn Timbers; MCI Paint & Drywall KITCHEN: $115,000 AND OVER Addilay Homes & Remodeling, LLC Minnetonka Trillium Partner: FocalPoint Flooring, Cabinets & Design OUTDOOR LIVING Great Northern Builders, LLC Hopkins Trillium Partners: Andersen Windows; Manomin Resawn Timbers INTERIOR: $200,000 AND OVER Alma Homes, LLC Maple Grove Trillium Partners: Andersen Windows; Manomin Resawn Timbers LOWER LEVEL: $125,000 AND OVER AMEK, Inc. Orono Trillium Partners: Alpine Hardwood; Fireside Hearth & Home MEMBER SPOTLIGHT
The Digest 47 Trust Mike Hoppe, Josh Dalki and Larry Larson with your Se the Professional St Paul - Minneapolis - Coon Rapids - Savage - Maple Plain - Roseville - St Cloud - Rochester - Oronoco - Mankato APRIL–JUNE 2021 HOUSING FIRST MINNESOTA ABC Supply is the largest wholesale distributor of roofing in the United States and one of the largest distributors of siding, windows, and select exterior and interior products. Founded in 1982, ABC currently has more than 760 locations nationwide. Specializing in select product lines and categories, ABC offers the professional contractor competitive pricing, superior service, and the highest quality building materials available. Check us out online at abcsupply.com or visit us in: St Paul - Minneapolis - Coon Rapids - Savage - Maple Plain - Roseville - St Cloud - Rochester - Oronoco - Mankato WHOLE HOUSE: UNDER $400,000 AMEK, Inc. Minneapolis Trillium Partners: Alpine Hardwood; Fireside Hearth & Home RESIDENTIAL EXTERIOR Highmark Builders, Inc. Sunfish Lake WHOLE HOUSE: $400,000 UP TO $800,000 Holly Home Renovations, LLC St. Paul WHOLE HOUSE: $800,000 AND OVER Highmark Builders, Inc. Prior Lake Trillium Partners: All, Inc.; David Charlez Designs; Ruby + Suede; Scherer Bros. Lumber Co. MEMBER SPOTLIGHT

A Homeownership Dream Come True

Second winner of the Parade of Homes First-Time Homebuyer $10K Giveaway closes on her first home.

At one point, Lori’s dream of owning her own place felt far out of reach. That was until she was selected as a winner of the Parade of Homes FirstTime Homebuyer $10K Giveaway and was able to close on her very first home.

When Lori first walked through her two-bedroom condo, it felt like home. She quickly put in an offer and was so excited to have it accepted.

“Just the way that it was decorated, I could see myself living here,” said Lori. “It’s just a small place you know, and it just felt like home.”

At one point, Lori’s dream of owning her own place felt far out of reach. Working in hospitality for over 15 years she had been paying down student loans and saving for a down payment when the pandemic hit.

“It’s just been something that I’ve wanted to do for a really long time. I’ve been saving money. When I was laid off at the start of the pandemic, I was so afraid that it was never going to happen,” she shared.

Like many, Lori was left unemployed during the pandemic with her dreams of homeownership placed on hold. As the pandemic went on, she was able to find a new job outside of hospitality and save some money by living at

home with her mom. The final piece of her homeownership puzzle fell in place when she was selected as one of the recipients of the Parade of Homes First-Time Homebuyer $10K Giveaway in the spring of 2022.

“I was able to start putting a little bit more money away with all of the stimulus,” said Lori. “And then I heard [the Parade of Homes giveaway] advertisement this spring and applied. I was so excited when I got the call that I won.”

The additional $10,000 made all the difference in Lori’s journey to homeownership.

“The market has been crazy. I think I looked at three places, put an offer in on one, and didn’t get it. And then when I saw this one and put an offer in, I was so thankful that they accepted,” said Lori. “It totally helped, you know, with the down payment, the closing costs, and everything. It was just it was amazing.”

Lori is the second recipient of the Parade of Homes First-Time Homebuyer $10K Giveaway to close on their home. Thank you to the generous donors to the giveaway who helped make homeownership a dream come true for Lori.

Giveaway $10K

48 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023
FIRST-TIME HOMEBUYER
Thank You to Our Generous Donors
Your clients deserve the home of their dreams and our High Efficiency Homes™ program can help. By signing up for this program, not only can you help your clients reduce energy use and costs, but they will also gain greater comfort and a healthier indoor environment. Learn more by visiting CenterPointEnergy.com/Builders or contacting Jake Schwietering
612-321-4386. REBATE AMOUNTS Percent of gas savings above baseline Rebate amount 10 - 14%* $500 15 - 19% $1,000 20 - 24% $1,500 25 - 29% $2,000 30 - 34% $3,000 35 - 39% $4,000 40% gas savings and above** $5,000 * Homes without natural gas water heaters will be capped at this rebate level. **Homes with gas savings above this amount will be capped at this rebate level. Rebates subject to change. ©2023 CenterPoint Energy 221201-02 Sign up for t he CenterPoint Energy High Efficiency Homes ™ program. We can help increase home energy efficiencies!
at

Clay Shoot

The annual Clay Shoot is a highlight for many members, and this year was no exception! Members spent the afternoon on the range taking their shot, building connections, and enjoying the great outdoors.

50 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023
October 6, 2022 SEEN + HEARD
THE BIG SHOT PRESENTING SPONSOR STAFFED AMMO SPONSOR SAFETY SPONSOR
JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 51 WWW .T ILESHO P. COM SKILLED CONTEST STATION SPONSORS RELIEF STATION SPONSOR BEER SPONSOR REGISTRATION SPONSOR Pella Windows & Doors STATION SPONSORS Bayer Built Woodworks, Inc. JL Schwieters Building Supply Synergy Products

BIG Night

It was a pretty BIG Night at Mystic Lake Center as we celebrated our incredible industry! WCCO Radio’s Jason DeRusha was back as emcee for our biggest night of the year. From the award-winning projects to the delectable culinary stations to the after party, it was certainly a night to remember!

52 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023
October 28, 2022 SEEN + HEARD
THE BIG SPONSORS WINNER’S CIRCLE SPONSOR RED CARPET SPONSOR EMCEE SPONSOR
JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 53 SEEN + HEARD Shaw/Stewart Lumber Co. VALET SPONSOR Arrow Building Center DRINK TICKET SPONSOR
Kolbe
Twin Cities Martha O’Hara
Twin Cities Closet
Water Doctors Water Treatment Co. BRONZE SPONZORS
GOLD
SILVER SPONSORS
CenterPoint Energy
Gallery
Interiors
Company
LOUNGE SPONSOR
SPONSORS

State of the Industry

We launched into a new year by inducting our leadership team and hearing from nationally acclaimed economist and speaker Elliot Eisenberg at the State of the Industry breakfast. Members came together to discover what’s on the horizon for the housing industry and what economic trends, challenges, and opportunities await us in 2023.

54 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023 SEEN + HEARD
december 6, 2022 PRESENTING SPONSOR Minnesota Construction Law Services, PLLC COFFEE SPONSOR In-Focus Systems Lyman Companies FORECAST SPONSORS

Every day, ABC Supply associates from over 800 locations nationwide dedicate themselves to making your job easier. It starts with 24/7 access to pricing and order placement with ABC Connect and ends with accurate deliveries, complete and on time, every time.

JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 55
MORE
Leading Supplier of Exterior Building Products
ROOFING
SIDING
WINDOWS
TOOLS
GUTTER
ACCESSORIES
AND
America’s

Target Your Customers

How do you get your story in front of the right audience to drive business growth? We can help. Our world-class marketing opportunities allow your business to reach the audience that makes most sense to you, whether it’s consumers or industry members.

Connect With Peers

As a Housing First Minnesota member, you gain credibility and industry insights that aren’t possible anywhere else. With nearly 1,000 member firms, you’ll be in the company of virtually every residential builder and professional remodeler in the region, alongside our exceptional associate members.

Helping you succeed

is our calling.

You will save money, sleep better knowing your business and industry are protected from government regulations, make unparalleled connections that help your business grow and feel great about being part of a cause that helps Minnesota.

Protect Your Industry

Our task is to protect and advance the business environment so your business can grow. We address city councils, mayors, legislators, regulators, and other policymakers to keep homebuilding and remodeling affordable so Minnesotans can continue to achieve the American dream of homeownership. All of that means greater success for our industry.

Member Discounts

Housing First Minnesota has brought together an array of members-only benefits that positively impact your bottom line. Check them all out online at housingfirstmn.org/ MemberBenefits.

Need help navigating all the benefits and resources of your membership?

Contact the membership team today: 651-697-1954 | Membership@HousingFirstMN.org

HousingFirstMN.org

Tool Kit

Housing First Minnesota has put together a suite of products and services to elevate your business, valued at over $5,000. Companies like yours gain a powerful business advantage with industry updates and resources for effective marketing campaigns.

56 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023
Building Industry Association
Your

a pretty big night

Housing Data

Permit data released by Housing First Minnesota was featured in the press.

Article Feature

Minneapolis-St. Paul Magazine interviews James Julkowski, Housing First Minnesota’s 2022 board chair, for details on home design ideas and inspiration. It was a perfect fall day for the annual Clay Shoot.

PowerHouse SMART Luxury Conference

Housing First Minnesota joined in as a sponsor at November’s Minne Luxury Conference featuring inspiring speakers, unique relationship-building opportunities, and outside-the-box education.

JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 57
@ispiri.designbuild @kspotdotcom Media
in the @HOUSINGFIRSTMN SEEN + HEARD
@lynnejensennelson
From our awards gala to the annual Clay Shoot – check out some of the posts Housing First Minnesota members have been sharing on social and places your association has been featured in the press this past quarter.
@almahomes and @kdanielledesign
our BIG
Take Your
More than 700 members joined us at
Night to celebrate the industry.
Shot!
Twin Cities home builders hit the brakes
@denalicustomhomes @trademarkwoodproducts
Minneapolis sees spike in new building permits

Member& News

Announcements

Welcome to Member News, the place to learn about what’s happening in the lives of Housing First Minnesota members. We feature awards, marriages, condolences, promotions, and all sorts of other milestones.

New staff

Sarah Adams, Senior Director of Member Engagement and Development

Housing First Minnesota is excited to announce Sarah Adams as our new senior director of member engagement and development. Sarah was raised in the small town of Red Wing, Minnesota. After attending college and working in healthcare for a few years, she quickly realized that she was passionate about people and building relationships. Sarah loves seeing people step into their sweet spot. She jumped into the world of business development and has worked in various spaces such as universities, private schools, international recruiting, nonprofits, and, most recently, the real estate and mortgage industry. She enjoys creating authentic relationships, getting to know others, and hearing their stories.

Sarah is also passionate about traveling and philanthropic work. She has traveled to over 35 countries and has volunteered in orphanages all around the world. She has two adopted sons from Africa and one biological daughter. Sarah stays active by paddleboarding, doing yoga, and walking her two rescue puppies.

Jessica Ryan, Housing First Minnesota Foundation Executive Director

The Housing First Minnesota Foundation is pleased to welcome Jessica Ryan to our staff as our new Foundation executive director. Jessica has more than 20 years of experience as a senior leader with local and national organizations, most recently serving as the executive director of the United Way of Washington County East. She has a proven and successful record of nonprofit management with Make-A-Wish Minnesota, Touchstone Mental Health, American Lung Association, and the American Cancer Society. Her various leadership roles focus on philanthropic strategic leadership, individual and corporate major giving, building, and leading successful cross -functional teams, community relations, stakeholder engagement, and team management. In more recent years, Jessica’s roles have organically formed around leading organizations through high-functioning strategy management, building successful development and marketing platforms, and building business models focused on impact. Jessica, her husband, three children, and two dogs reside in Chisago City.

Awards

Admit One Home Systems Wins Five Major Industry Awards

Congratulations to Admit One Home Systems for winning five industry awards from CEDIA, the global association for the home technology industry.

• Best Integrated Home – Level III ($250,000$450,000): Pleasant Lake (Hendel Homes; Eskuche Design + Vivid Interior Design)

• Best Integrated Home – Level IV ($450,000+): Stanley Park (John Kraemer + Sons, Inc.; Murphy & Co. Design; Eminent Interior Design)

• Excellence in Rack Design & Build: Stanley Park

• Excellence in Documentation: Stanley Park

• GLOBAL Winner of Best Integrated Home: Stanley Park

Each entry was carefully reviewed by an esteemed panel of judges. “This year’s projects embody CEDIA’s forward-thinking spirit and the utmost excellence the smart home industry has to offer,” said Daryl Friedman, CEDIA global president and CEO.

58 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023
SEND YOUR ANNOUNCEMENTS TO LAURA@HOUSINGFIRSTMN.ORG HAVE NEWS?

New members

Alside Supply Center

Ryan Ohr rohr@alside.com 320-390-0161

Bismark Builders, LLC

Mike Bismark bismarkbuilders@hotmail.com 612-325-3934

Business Essentials

Landon Quandt lquandt@orderbe.com 763-595-5300

Civil Methods, Inc.

Kent Brander kent.brander@civilmethods.com 763-210-5713

Clear Channel Outdoor Advertising

Roy Schroeder royschroeder@clearchannel.com 612-605-5100

Enercept

Joe Pasma joepasma@enercept.com 605-881-5864

exp Realty - Mary Jo Quay

Mary Jo Quay maryjo.quay@exprealty.com 612-384-1360

First Bank & Trust

Steve Dobin steve.dobin@bankeasy.com 952-426-5344

Granite Unlimited, Inc.

Pavel Glushko info@graniteunlimitedinc.com 952-469-5242

Harrison Custom Builders, LLC

Amber Eggert amber@harrisoncustombuildersllc.com 602-663-0770

Hy Tec Construction of Brainerd, Inc.

Toni Bieser office@hytecconstruction.com 218-829-8529

Inland Development Partners

Steven Eggert seggert@inlanddp.com 651-206-4310

J. Fletch Real Estate Group

Jay Fletch jayfletch@edinarealty.com 651-502-2972

J.G. Hause Construction, Inc.

Bill Schoonover bill@jghause.com 913-228-944

Midwest Business Law,

PLLC

Courtney Ernston courtney@midwestbizlaw.com 651-398-0979

Noble Development

Adrian Magendzo info@nobledevelopmentco.com 202-531-5265

Redstone Design, LLC

Jim Butcher jimbutcher@edinarealty.com 612-961-5759

Value Plus Flooring

Gabe Goedeke gabe.goedeke@valueplusflooring.com 651-294-9344

Wittstock Builders, LLC

Allen Wittstock al@wittstockbuilders.com 715-760-0223

Recruitment

The Champions Club

The Champions Club is a way to recognize those members that are passionate about the association and share the good news of membership. There will be year-end prizes for top individuals and top committee teams. Start referring today!

THERE ARE SO MANY WAYS TO EARN POINTS!

• Send membership a referral

• Communicate with a referral about Housing First Minnesota membership (email or phone call)

• Send emails to your vendor/ partner list

• Supply your vendor/partner list to the membership team

• Your referral joins the association

HOW WE MAKE IT EASY:

• Complete a form for each individual referral (scan the QR code)

• Email Membership@ HousingFirstMN.org with each individual referral or attach trade/partner list

• If sending a bulk email, blind carbon copy (BCC) Membership@ HousingFirstMN.org. Before you do, email Membership@ HousingFirstMN.org and we’ll set up incentives for the new member because of their valued relationship with your company

• Staff will track points and update the leaderboard

JANUARY–MARCH 2023 | HOUSING FIRST MINNESOTA The Digest 59
SEEN + HEARD
SEPTEMBER-NOVEMBER 2022 100 KRISTIN REINITZ, Admit One Home Systems REBECCA REMICK, City Homes, LLC TODD POLIFKA, Custom One Homes SAMANTHA GROSE, Oak & Arrow Homes SARAH DULONG, Ron Clark Construction DALE LOEFFLER, Marvin PETER MARTIN, Pella Windows & Doors JOHN KRAEMER, John Kraemer & Sons, Inc. JAMES JULKOWSKI, Julkowski, Inc. BILL BURGESS, Lennar RICK DENMAN, Charles Cudd Co., LLC 25 25 25 25 25 25 25 25 25 100 100 100 100 100 100 100 $100 $100 100 $100 $100 100 100 JAMES SLAIKEU, D.R. Horton, Inc. - Minnesota MARK WILLIAMS Mark D. Williams Custom Homes RYAN RUTZICK, All, Inc. MARCUS CURTIS, Simek Property Group SCOTT LEWISON, Fireside Hearth & Home JOHN QUINLIVAN, Gordon James PAUL REILAND, Johnson Reiland Builders & Remodelers, Inc. CAROLE GRIFFITH, McDonald Design Build Renovate MARY JO QUAY, exp Realty - Mary Jo Quay NICOLE ALATAR Champions REFERRAL CLUB 25 25 25 100 100 100 $100 $100 $25 $25 $100 100 25 25 25 25 25 25 25 25 25 $25 25 25 25 $25 $100 25 100 $100 $100 100 $100 100 $25 $25 $25 $25 $25 $25 As of December 15, 2022

Advertisers

ABC Suppy Co., Inc. 55

Allstar Construction 30

Arrow Building Center 7

Bell Bank Mortgage 60

CenterPoint Energy 49

Central Marble Products, Inc. 33

Cityscape Painting Contractors, Inc. 55

Corporate 4 Insurance Agency, Inc. 47

Erosion Works 60

Ferguson Enterprises 27

In-Focus Systems

Inside Back Cover

Jeff Belzer’s 21

JL Schwieters Building Supply 41

Lampert Lumber 13

Lyman Lumber Co. 19

Pella Windows & Doors 21

Schwieters Companies, Inc. Inside Front Cover

Shaw/Stewart Lumber Co. 25

Synergy Products Back Cover

West Fraser 3

Want to advertise in the next Digest?

Contact Kori Meewes Kori@HousingFirstMN.org | 612.801.9874

Brad Meewes Brad@HousingFirstMN.org | 651.269.2399

60 The Digest HOUSING FIRST MINNESOTA JANUARY–MARCH 2023
THE MINNESOTA MULCH LOG It is a 10” geotextile fabric sewn together and filled with recycled wood product. It’s reusable and can be easily moved to another location. The Minnesota Mulch Log is a very effective perimeter control device and is more aesthetically pleasing providing a great alternative to silt fence. CHECK OUT OUR WEBSITE WWW.EROSIONWORKS.NET We specialize in: • Rough Cut Mowing • Silt Fence Installation • Hydro Seeding • Seed and Mulch • Tree and Safety Fence • Inlet Protection • Erosion Blanket Exceptional Service. Always. 763-262-SILT (7458) • Reusable • Low Maintenance • Ditch Checks • Cost Effective • Inlet Protection • Perimeter Control • Easy to Install • Self Anchoring 3 22 bellbankmortgage com H E L P Y O U R C L I E N T S S T O P D R E A M I N G & S T A R T D O I N G Whether your clients are building or renovating, Bell can help make their home dreams come true, with: Simple and straightforward financing for purchase or refi Our Bell rehab loan program, which has options to roll Bell’s one-time close on new construction –saving you and your clients time and hassle renovation costs into home financing At Bell Bank Mortgage, our entire construction loan process is handled in-house, from application through underwriting and funding, helping ensure faster answers, a reliable process and peace of mind Our construction lending program is designed to provide you and your clients flexibility and control Work with Bell to experience excellence throughout the loan process! Bell Bank_Q1-Dig23_placed.indd 1 12/20/22 11:38 AM
Showroom By Appointment Only: 15620 Edgewood Dr. Suite 245, Baxter, MN Main Office / Showroom: 6011 Culligan Way, Minnetonka, MN www.synergy-trt.com Proud Distributor of Loewen Premium Windows & Doors Builder: NOR-SON Custom Homes Design: David Charlez Design Photographer: Landmark Photography Phone: 952.224.2202 Fax: 952-224.2203 Loewen creates windows and doors that flawlessly unite wood, glass and metal —captivating the eye, elevating the spirit and bringing your world one step closer to perfection.

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