The Digest | Apr-Jun 2021

Digest T H E

APRIL–JUNE 2021

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Effective Leadership Through Uncharted Territories

MEMBER SPOTLIGHT

HOUSING ADVOCACY

Newest Foundation Board Members

A Fast Start to 2021

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Contents APR IL– J UNE 2 0 21

HOUSING FIRST

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From the President

President Todd Polifka reinforces the value of membership and how to use the association to help grow your business

UP NEXT

6

8

27

Events

See what’s coming up next for industry events

Need to Know

A quick look at what’s going on at your association

IN THE INDUSTRY

10 Advocacy in Action

2021 is off to a fast start — here’s a snapshot of the year so far

[ L E T ’S TAL K ]

HOUSING PRESENTED BY

12 Housing Day at the Capitol Housing Day goes virtual in 2021

15 Industry Data

9

Millennial homeownership climbs, but continues to lag older generations

18 Top 25 Builders

See which builders made the list

BUSINESS TIPS

23 Q+A: Ask the Green Building Expert

Kevin Byrnes answers your green building questions

26 Home Tour Tips

Learn how to get the most out of new home and remodeling tours

30 The 5 Ps of Business Management

Create and nurture systems that generate profit and minimize risk

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33 Effective Leadership Through Uncharted Territories Are your leadership skills keeping up?

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

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Digest T H E

Board of Directors EXECUTIVE BOARD PRESIDENT TODD POLIFKA, Custom One Homes VICE PRESIDENT JAMES JULKOWSKI, Julkowski, Inc. TREASURER JOHN QUINLIVAN, Gordon James Construction, Inc. ASSOCIATE VICE PRESIDENT RYAN RUTZICK, All, Inc. SECRETARY SUNNY BOWMAN, Dakota County Lumber Company IMMEDIATE PAST PRESIDENT GARY KRAEMER, John Kraemer & Sons, Inc. PAST ASSOCIATE VICE PRESIDENT ED ENGELBRECHT, Pella Windows & Doors BOARD + COMMITTEE CHAIRS ADVOCACY CHAIR TONY WIENER, Cardinal Homebuilders, Inc. AMBASSADOR CHAIR DALE LOEFFLER, Marvin ARTISAN HOME TOUR CHAIR JOHN KRAEMER, John Kraemer & Sons, Inc. LARGE VOLUME BUILDERS COMMITTEE JAMIE THARP, Pulte Homes of Minnesota, LLC PARADE OF HOMES CHAIR SARAH DULONG, Ron Clark Construction PAST PRESIDENTS’ ADVISORY COUNCIL SHAWN NELSON, New Spaces REMODELERS CHAIR SAMANTHA GROSE, Oak and Arrow Homes SMALL VOLUME BUILDERS CHAIR ART PRATT, Pratt Homes MEMBER AT-LARGE TIM FOHR, Lennar

ON THE COVER: TOUR-GOERS EXPLORE A HOME

BY BLACK DOG HOMES CO. ON THE SPRING PARADE OF HOMES PHOTO BY ANTHOLOGIE

Staff EXECUTIVE LEADERSHIP EXECUTIVE DIRECTOR DAVID SIEGEL FINANCE & OPER ATIONS VICE PRESIDENT OF FINANCE JANICE MEYER FINANCE DIRECTOR TAMMI HALL

BUILDING FUTURES

36 Havana Nights Foundation Gala

Support the Housing First Minnesota Foundation by becoming a sponsor or by making a donation

MEMBERSHIP + EVENTS VICE PRESIDENT OF MEMBERSHIP & EVENTS NICOLE COON MEMBERSHIP & EVENTS COORDINATOR KIM CARTER EDUCATION & SPECIAL EVENTS DIRECTOR OF EDUCATION & SPECIAL EVENTS TOM GAVARAS EDUCATION & SPECIAL EVENTS COORDINATOR MARY BETH BLOM

MEMBERS O N LY

37 Member Spotlight: Building a Strong Foundation

Our Foundation’s newest board members share how they got started in the industry and why they are committed to giving back

ADVOCACY VICE PRESIDENT OF ADVOCACY JAMES VAGLE DIRECTOR OF LEGISLATIVE & POLITICAL AFFAIRS MARK FOSTER DIRECTOR OF RESEARCH & REGULATORY AFFAIRS NICK ERICKSON COMMUNICATIONS DIRECTOR KATIE ELFSTROM COMMUNICATIONS & RESEARCH COORDINATOR KRISTEN OBER ADVOCACY COORDINATOR KATE WIGLEY

44 In the Media 46 Member News 48 Member Discounts 49 Elite Sponsors 50 The Movement to Grow Homeownership Opportunities

Executive Director David Siegel shares the importance of supporting homeownership for everyone, everywhere

CREATIVE SERVICES VICE PRESIDENT OF MARKETING & CREATIVE DAWNITA PARMELY CREATIVE DIRECTOR HANNAH SWAN EDITOR & SOCIAL MEDIA MANAGER LAURA BURT ADVERTISING & SPONSORSHIP FULFILLMENT COORDINATOR LAURIE SPARTZ CREATIVE SERVICES & TECH COORDINATOR CASEY SCOZZARI DIGITAL GRAPHIC DESIGNER EMILY DOHENY FOUNDATION FOUNDATION DIRECTOR DONNIE BROWN FOUNDATION MARKETING & EVENTS MANAGER ERIN MILBURN INDEPENDENT CONTR ACTORS ADVERTISING & SPONSORSHIP SALES KORI MEEWES & BRAD MEEWES, and more by Kori

C O N TAC T U S

2960 Centre Pointe Drive, Roseville, MN 55113 • 651-697-1954 • HousingFirstMN.org 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.

2

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

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FROM THE PRESIDENT

Growing Your Business Through Membership Countless members of Housing First Minnesota can tie at least some of their business growth and success directly to their engagement and involvement in the industry association. I’m one of them. And each of us has benefited from our involvement in different ways. For me, I’ve built friendships and gained access to the best minds in the industry who have been incredibly generous in sharing with me and helping me.

As we finally begin to put COVID-19 behind us, I thought I’d take this moment early in 2021 to reinforce the value of membership and how you can use the association to help grow your business.

Connections

For many of our members, the connections and often friendships that develop through their membership in the association can actually help grow their business. Just the other day, I had a call from a builder who was considering building a spec home and he wanted my opinion. I helped him with my feedback, just as so many of our members have helped me. And who knows, maybe that product launch will be just the ticket to a more profitable and successful year.

I know it’s harder to connect in the virtual world of COVID-19, but the phone still works. Zoom and Teams are easy. And we’ll be returning to in-person events as 2021 continues. So, reach out now using the tools at hand, and get ready for the June Member Bash, Golf Open, Foundation Gala, Clay Shoot, The BIG Night, and other opportunities to build and reinforce connections.

Advocacy

Housing First Minnesota continues every day to battle against increases in the cost of housing through regulation and fees. Whether it’s the energy code,

the electrical code, plan review and inspection permits, or removing the air gap for dishwasher installation, we’re in the mix. Now, our newly launched homeownership campaign broadens our audience and reminds all of Minnesota why they need to care and what action they can take to keep homeownership possible.

Education

This is an area in which we’re seeing dramatic growth for the association.

Our online, on-demand courses are high quality, easy, affordable, and exceptionally welcome right now. We get great reviews, and we’re proud to see this program grow. Just look at the lineup for Contractor University and education at the Northern Design Build Expo to get a flavor for the best-in-industry education.

Marketing

The Parade of Homes, Remodelers Showcase, and Artisan Home Tour continue to be of solid value for our builders. Demand is high right now and that’s likely to continue. So, leverage the power of the Parade of Homes brand and grow your business. Introduce

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4

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

your new product lines and your new communities. The Twin Cities consumer looks for these while touring. And our Green Path program is the largest green building program in the state, providing our builders great recognition for their quality work.

Savings

We often neglect to mention a couple of the very basic money-saving programs that can drive improvement to your bottom line and help you grow your business. These include the association Health Plan with Blue Cross Blue Shield, Belzer auto and truck discount program, Verizon cell phone program, and HomeSphere rebate offerings.

You can generate a strong return on investment for your membership.

Thanks for being a part of the association. Now let’s go grow your business and our industry.

TODD POLIFKA 2021 HOUSING FIRST MINNESOTA PRESIDENT

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UP NEXT

Events UPCOMING

KickStart Join us virtually for KickStart, our member event built to help you make the most out of your membership. Meet the Housing First Minnesota staff, mingle with other members, and get your questions answered. Members old and new are welcome to attend.

REGISTER AT

HousingFirstMN.org/ events

April 15; June 16; August 4, 2021

Northern Design Build Expo Did you miss the virtual event? Fear not FOMO—we got you. The exhibit hall is open through the end of May, and you can still access the education sessions if you registered for the class pass. Didn’t register?

Purchase your class pass now to gain access to limited sessions.

JOIN THE EXPERIENCE AT

NorthernDesign BuildExpo.com SPONSORS?

On-demand education and exhibit hall open until May 31, 2021

FIND INFORMATION AT

Artisan Home Tour Tour more than 30 stunning homes from Housing First Minnesota members all across the Twin Cities on the seventh annual Artisan Home Tour. Homes are open Fridays-Sundays from 12-6 p.m.

ArtisanHomeTour.org

June 11-27, 2021

O N D E M A N D U N T I L M AY 31

THE EXPO NOW ON DEMAND Connect, innovate, and grow at the new destination for residential homebuilding professionals

Did you miss the all-new Expo created just for you?

It’s now available on demand! For a limited time, access recorded sessions by five industry experts as they share their secrets to success. Stream powerful education, then visit the virtual exhibit hall to discover new products and services.

NORTHERNDESIGNBUILDEXPO.COM Thank you to our session sponsors, Jeff Belzer’s & Blue Cross Blue Shield

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The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

$99 EDUCATION CLASS PASS | FREE VIRTUAL EXPO

Get your FREE EXPO PASS to explore the latest products from exhibiting companies.

Upgrade to an EDUCATION CLASS PASS to stream exclusive on-demand education sessions.

FIND THE ENTIRE 2021 EVENT CALENDAR & REGISTER ONLINE AT

HOUSINGFIRSTMN.ORG/EVENTS

Member Bash MEMBER

Come on down so we can celebrate YOU at our Member Bash, our member appreciation party! We encourage all members to join us to enjoy excellent networking with other members. Attendees can participate in our prize drawings, outdoor fun and games, and great food and drinks!

REGISTER AT

HousingFirstMN.org/ events

June 15, 2021

REGISTRATION OPENS MAY 3 AT

Golf Open Enjoy a round at our annual Golf Open. Connect and mingle with industry partners before and after the shotguns and while on the course.

HousingFirstMN.org/ events

August 5, 2021

Housing First Minnesota Foundation Gala Celebrate building futures through housing at the annual Housing First Minnesota Foundation Gala at the J.W. Marriott - Mall of America. Enjoy fabulous food and networking, win fantastic prizes during the auctions, and show your support for the tangible impact your Foundation is making on the lives of Minnesotans in need.

REGISTER AT

FoundationGala.org

August 7, 2021

COVID-19

Impact on Events Housing First Minnesota prides itself on first-class events and programming for our partners and supporters, and it is this trustworthiness that you can rely on to do what is in the best interest of our members when it comes to our upcoming events.

We understand the investment our partners and supporters make in attending and sponsoring our events and know the impact a cancellation has on your business goals. Your health and safety are our

number one priority in any decisions we make at this time.

We plan to be transparent about our decision-making process and do not take any of our decisions lightly.

If circumstances change or we should need to cancel, reschedule, or restructure these events, we will communicate to registrants and sponsors in a timely manner.

Thank you for your patience as we continue to monitor the current crisis and make adjustments to the execution of these events.

All of our event offerings can be found at: HousingFirstMN.org/Events

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

7

UP NEXT

Need to Know

Fall Parade of Homes & Remodelers Showcase Get your work entered into the best marketing event of the fall! The Fall Parade of Homes and Remodelers Showcase entry process opens in May. Parade of Homes: September 11-October 3, 2021

PARADE OF HOMES SPONSORS

Remodelers Showcase: October 1-3, 2021 Fall Entries Accepted: May 3–July 7, 2021 FIND HOME TOUR INFORMATION AT

REMODELERS SHOWCASE SPONSOR

HousingFirstMN.org/HomeTours

Fall 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!

June 11: ROMA Entries Due July 7: Fall Reggie Entry Due July 9: Builder, Remodeler, Associate of the Year Entry Due July 9: Rising Star Nominations Due July 23: Bennie Entry Due July 23: Fall Trillium Entry Opens July 30: Robert L. Hanson Lifetime Achievement Award Nomination Deadline

Online Contractor University Classes

Aug. 6: Rising Star Materials Due

Earn your continuing education credits through Contractor University’s online courses. With more than 20 courses available, you’ll find specialized classes that provide useful and practical knowledge to apply to your business.

Aug. 6: Builder, Remodeler, Associate of the Year Evaluations Close

ONLINE COURSES ARE AVAILABLE YEAR-ROUND AT

ContractorU.com

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The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

SPONSORED BY

Aug. 27: Fall Trillium Entry Due DETAILS AT

HousingFirstMN.org/Awards

Let’s Talk Housing Podcast Launches Introducing an exciting new addition to our array of communications for members, the Let’s Talk Housing podcast! Housing is vital to the health of our communities, our economy, and each of us individually. Let’s Talk Housing reinforces homeownership by providing insight into the complex world of housing through inspiring conversations with the people who work in the industry.

LISTEN AT

HousingFirstMN.org/Podcast

Health Insurance – Enroll Anytime

[ L ET’ S TA LK ]

HOUSING PRESENTED BY

This plan offers our members greater health insurance options and potentially increased savings. The Housing First Minnesota association health plan (AHP) is fully insured by Blue Cross® and Blue Shield® of Minnesota, managed by North Risk Partners and is available through any insurance agent. To start the enrollment process, contact your insurance agent.

QUESTIONS? CONTACT JANICE MEYER AT

Janice@HousingFirstMN.org

Lot Listings Have lots to sell? We can help. Share the details on your available lot/land/acreage and we will post your listing on HousingFirstMN.org.

SUBMIT THE LOT LISTING FORM AT

HousingFirstMN.org/LotListings

Contracts Available Housing First Minnesota provides our members with contracts so you’re able to focus on your business. From lien waivers to purchase agreements to minimum performance guidelines and more, review these contracts online and use them as resources in your toolkit.

ACCESS CONTRACTS AT

HousingFirstMN.org/Contracts

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

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LEGISLATIVE UPDATE:

A Flurry of Activity, Good and Bad THE BAD

David Siegel, executive director, testifies in front of the Senate Local Government Committee in favor of SF 915, a bill aimed at addressing Minnesota’s exclusionary zoning practices.

As the 2021 Legislative Session surpasses the midway point, many bills that increase the costs of housing have been introduced and heard in committees. Your Housing First Minnesota advocacy team is working with legislators and stakeholders to share our serious concerns about proposals such as these that would increase the costs of housing by thousands of dollars during a housing affordability crisis.

THE BILLS: HF 527 (Masin): A bill that would authorize cities to charge street impact fees.

HF 1426 (Jordan): A bill that would increase the costs of carpet.

HF 1350 (Boldon): A bill that would increase the costs of park dedication fees in all cities of the first class.

Nick Erickson, director of research & regulatory affairs, testifies on behalf of SF 801, a bill that aimed at modernizing building permit fees, in front of the Senate Housing Committee.

ADVOCACY IN ACTION

2021 Off to a Fast Start Despite the limitations on in-person meetings, the Minnesota Legislature has taken an ambitious pace to its work thus far in 2021. For housing, there have been industrysupported initiatives aimed at increasing affordability and homeownership access with reforms to zoning, permitting, and code processes. On the other end of the spectrum, we’ve opposed local government attempts to create new authority for street fees and park fees related to housing developments.

Outside of the Capitol, Housing First Minnesota has initiated legal challenges against the cities of Corcoran and Dayton based on their self-reported surpluses in building permit revenue. These activities are ongoing at a time when our housing market is seeing intense inventory pressures and affordability challenges across the board.

We expect the fast pace for the rest of 2021 and look forward to working with our committees to help us advance the housing affordability and homeownership initiatives forward.

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HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

BE053 (Bierman): A bill that would mandate all new garages be electric vehicle ready.

THE GOOD On the other side of the coin, bills that have the potential to protect homebuyers and potentially save them thousands of dollars have also been heard. Your advocacy team is working to support these pieces of legislation and help legislators understand why it’s crucial we bring down the cost of housing.

THE BILLS: SF 915 (Draheim): A bill that would address Minnesota’s exclusionary zoning practices by no longer requiring Planned Unit Development contracts when authorizing housing developments.

SF 914 (Draheim): A bill that would cap park dedication fees.

SF 910 (Draheim): A bill that would require energy code provisions to have a five-year payback period.

SF 802 (Koran): A bill that exempts singlefamily homes from the window fall prevention device.

Follow @HFMNAdvocacy on Twitter for frequent legislative updates as the legislative session continues.

LEGAL UPDATE:

REGULATORY AFFAIRS UPDATE:

Challenge Over Permit Fees

Energy Code and Electrical Code

In February, Housing First Minnesota commenced a legal challenge against two metro cities, Corcoran and Dayton, challenging their residential permit fee structures. State law mandates that municipal building permit fees must be by “legal means and must be fair, reasonable, and proportionate to the actual cost of the service for which the fee is imposed.”

In December, DLI Commissioner Roslyn Robertson announced that Minnesota would not adopt a new residential energy code this code cycle. Housing First Minnesota advocated to not adopt the new energy code since the code process began in 2018. Member Ross Anderson of The Energy Network Worldwide served as the official Housing First Minnesota appointee for the initial technical review of the 2015 and 2018 model energy codes. Housing First Minnesota led a coalition of industry groups opposed to a new energy code adoption, including the Minnesota Realtors, the Central Minnesota Builders Association, and HBA of Fargo-Moorhead.

In late 2020, Housing First Minnesota sent demand letters to several cities outlining that their building permit fees are in conflict with state statute and Minnesota Department of Labor and Industry guidelines.

While Housing First Minnesota focused its action on two cities, the most recent permit report produced by our affiliated Housing Affordability Institute analyzing publicly provided data indicates dozens of cities are engaged in similar practices that are harming homebuyers.

Housing First Minnesota has appealed a November ruling by an administrative law judge over the 2020 National Electrical Code (NEC). The Minnesota Court of Appeals will hear the case in late April.

Minnesota Construction Law Services is representing Housing First Minnesota in this challenge to the process used by the Minnesota Board of Electricity in its adoption of the 2020 NEC as the state’s electrical code.

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

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Housing Day at the Capitol Goes Virtual in 2021 While Housing Day at the Capitol looked much different this year, the goal and purpose remained focused on the future of homeownership and housing in Minnesota. Once again Housing First Minnesota partnered with the Minnesota Realtors® to make a powerful show of support for housing and homeownership at the Capitol.

Housing Day at the Capitol has always played a meaningful role in connecting the association’s message with the voices and faces of the industry who can add a personal story to each issue. During this year’s event, virtual meetings were held with nearly 80% of the state legislature, with over 400 members of both associations registered to attend.

Having a safe home has become even more important during the global pandemic. With that, our fight for homeownership and more housing options for all families in our state has elevated to a new level at the Capitol. This year’s event will help support Housing First Minnesota’s advocacy team as they continue to support legislation that would increase homeownership opportunities in our state, while fighting legislation that would add to the cost and add barriers to our already troubled housing market.

CAPITOL SPONSORS

ADVOCATE SPONSORS

All, Inc.

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The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

Sustainable 9 Design + Build

Thank

for Participating

Thank you to the 243 builders who participated in the CenterPoint Energy High Efficiency Homes® program in conjunction with Xcel Energy.

The Housing First Minnesota members honored as top performing 2020 program participants include:

Together, we supported the construction of 6,090 energy-efficient new homes and the program collectively saved 182,081 dekatherms and about 4.35 million kilowatts, which is the equivalent of powering nearly 2,746 passenger cars for an entire year!

• Lennar • Lucid Builders • Sustainable 9 Design + Build

CenterPointEnergy.com/Builders

For more information about this program or to become a participating builder, please contact Hannah Jansen at 612-253-9982 or email at Hannah.Jansen@icf.com.

©2021 CenterPoint Energy 210127-11

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INDUSTRY D ATA

BY THE NUMBERS

Millennial Homeownership Climbs, but Continues to Lag Older Generations Despite recent increases, the millennial homeownership rate continues to trail previous generations. According to the Census Bureau’s Current Population Study and an Apartment List renters survey, though the millennial homeownership rate is rising, the generational homeownership gap persists and the impacts of the ongoing COVID-19 pandemic have reinforced the trend for years to come.

At age 30, 42% of millennials own homes, compared to 48% of Gen Xers and 51% of baby boomers at that age.

HOMEOWNERSHIP RATE AT AGE 30

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42% 48% 51% MILLENIALS

GEN X

SPONSORED BY

BABY BOOMERS

SOURCE: U.S. CENSUS BUREAU, CURRENT POPULATION SURVEYS

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

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INDUSTRY D ATA

The millennial homeownership rate grows even more concerning when looking at ownership among Black Americans. White millennials maintain a homeownership rate that is substantially higher than non-white groups, and only barely lower than previous generations.

For Black Americans, not only is homeownership lower than the rest, millennials face the largest generational divide. By age 30, the white millennial homeownership rate (51%) is already 2.5x higher than the rate for Black millennials (20%), according to the U.S. Census Bureau’s Current Population Surveys.

Despite the racial disparities, millennials as a whole made great progress in 2020 when it comes to homeownership, accounting for more than half of all new mortgages. But, for the millennials who have yet to purchase a home, that dream is becoming more unattainable.

As the economy recessed in 2020 and job losses disproportionately fell on the shoulders of younger generations, home prices continued to climb higher. This has left a larger share of millennial renters feeling more hopeless about the prospect of homeownership.

According to Apartment List’s survey, 18.2% of millennial renters

say they plan to rent forever, up for the third consecutive year from 12.3% in 2019 and 10.7% in 2018.

Millenial Homeownership Disparity

This decline in expectations isn’t for a lack of desire for homeownership.

In a separate survey by Apartment List, 90% or survey respondents viewed homeownership as important for personal success and financial security. So, what’s to blame for more renters feeling like ownership isn’t in the cards for them? Affordability.

AT AGE 30, THE WHITE MILLENNIAL HOMEOWNERSHIP RATE IS

According to Apartment List, among those who plan to always rent, 74% say they cannot afford homeownership, significantly more than those who cite the potential lifestyle benefits of renting, including added flexibility (34%) and avoiding unforeseen maintenance and expenses (32%).

Affordability is also the biggest barrier for millennials who plan to purchase a home. According to Apartment List’s survey, over three-quarters say they are waiting until they have the financial means.

Of course, the other factor holding back millennials in the housing market is the COVID-19 pandemic, with 40% of millennials who plan to buy reporting that the pandemic has had a direct effect on their homeownership plans, including 21% who now say they are delaying homeownership altogether.

2.5X

HIGHER THAN THAT OF BLACK MILLENNIALS SOURCE: U.S. CENSUS BUREAU, CURRENT POPULATION SURVEYS

More Millennials Feeling Hopeless About Homeownership PERCENTAGE OF MILLENNIALS WHO “EXPECT TO ALWAYS RENT”

10.7%

12.3%

2018

2019

18.2% 2020

SOURCE: ANNUAL APARTMENT LIST RENTER SURVEY

Affordability Biggest Roadblock for Millennials SURVEY: WHY DO YOU EXPECT TO ALWAYS RENT?

74 34% 32% %

I CANNOT AFFORD TO BUY A HOME

I LIKE THE FLEXIBILITY THAT RENTING PROVIDES

I PREFER TO AVOID HOME MAINTENANCE AND OTHER ADDED COSTS

SOURCE: ANNUAL APARTMENT LIST RENTER SURVEY

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HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

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INDUSTRY D ATA

Builders TOP 25

OF 2020 ATTACHED HOUSING

(2020)

SINGLEFAMILY UNITS (2020)

TOTAL UNITS

COMPANY NAME

GROSS REVENUE

Lennar

$699,303,000

1,514

1,188

326

D.R. Horton, Inc. - Minnesota

$328,919,386

783

690

93

M/I Homes

$292,011,327

689

556

133

Pulte Homes of Minnesota, LLC

$248,608,000

525

413

112

Robert Thomas Homes, Inc.

$149,938,317

228

228

0

Hanson Builders, Inc.

$141,462,113

210

210

0

Capstone Homes, Inc.

$129,606,000

323

323

0

Gonyea Homes, Inc.

$105,726,300

125

111

14

Creative Homes, Inc.

$105,690,143

220

187

33

Eternity Homes, LLC

$55,000,000

100

100

0

David Weekley Homes

$53,538,813

111

111

0

Brandl Anderson Homes, Inc.

$50,774,225

120

95

25

Charles Cudd Co., LLC

$43,355,826

49

49

0

OneTenTen Homes, LLC

$40,007,055

72

72

0

KEY LAND HOMES

$39,745,269

85

85

0

Progressive Builders, Inc.

$36,046,319

130

130

0

Price Custom Homes

$32,639,907

72

68

4

Michael Lee Homes

$30,610,000

55

55

0

Benzinger Homes

$30,175,426

75

68

7

Distinctive Design Build, LLC

$29,799,036

65

62

3

Derrick Custom Homes, LLC

$29,593,932

52

24

28

Sharper Homes, Inc.

$29,400,000

48

48

0

Country Joe Homes

$27,144,904

50

50

0

TJB Homes, Inc.

$26,261,642

28

28

0

JP Brooks Builders

$26,046,859

93

80

13

Includes Jonathan Homes of Minnesota

Includes Gonyea Custom Homes & Stonegate Builders

Includes Kootenia Homes

Includes Roof Doctor Inc.

Includes Youngfield Homes, Inc.

For the 15th year in a row Lennar topped our annual ranking of the top 25 builders in the Twin Cities in 2020. Rankings are based on annual gross revenue as reported by respondents for for-sale housing.

Together the top 25 builders accounted for $2.7

18

The Digest

(2020)

billion in gross revenue and 5,822 housing units in 2020. Of those housing units, 5,031 were single-family homes and 791 were townhomes or multifamily units. Lennar reported gross revenue at $699,303,000 for 1,514 single-family homes and 326 multifamily homes closed in the 2020 calendar year.

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

Twin Cities residents are fortunate to have a large group of talented builders to choose from when looking for their new homes. In a challenging year these builders have adapted and overcome supply, labor, and regulatory cost barriers to bring much-needed new housing inventory to our region.”

DAVID SIEGEL EXECUTIVE DIRECTOR HOUSING FIRST MINNESOTA

ABOUT THE TOP 25 RANKINGS Rankings are based on information provided by survey respondents.

Each company has verified information to the best degree possible. Commercial construction firms, rental or senior housing were not included in this ranking.

Your Vision Starts Here

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Offering Only the Best Personal Service to You and Your Clients Financing a home can be straight forward for some of your clients, but it can also be tricky. At Caliber Home Loans, we think you deserve a go-to lender that can make the hard ones look like the easy ones, and make you look great doing it.

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Our goal is to save you time and help you close deals you might otherwise miss. We do that by being a top-rated national firm which does nothing but mortgages. We operate in all 50 states and make every effort to find solutions when others can’t. We have proven user-friendly technology, including a mobile app that will keep your clients connected every step of the way.

We’re here to help and hope to hear from you soon!

Brady Mergenthal Branch Manager (South Metro) 651-324-5431, NMLS 40023

Caliber Home Loans is ranked #2 retail mortgage lender in overall volume by the Scotsman Guide*, the leading resource for mortgage originators.

1559 Southcross Drive W. Suite 200 Burnsville, MN 55306 brady.mergenthal@caliberhomeloans.com

Shelly Farris Branch Manager (North Metro)

Our skilled national builder division helps us share ideas and resources with programs that your clients will want.

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I joined Caliber for many reasons, but foremost is the entrepreneurial culture of the organization and the real focus on the customer and the client. We get it done. As part of the National Builder Division, I wake up every day excited to support our team and their partnerships with builders, developers, and new construction-focused Realtors.”

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Kevin Jaunich Branch Manager (West Metro) 612-255-1205, NMLS 348636 615 Babcock Boulevard E. Suite 300 Delano, MN 55328 kevin.jaunich@caliberhomeloans.com

Michael Cass Area Manager 612-201-5898, NMLS 543274 10400 Baltimore Street NE Suite 120 Blaine, MN 55449 michael.cass@caliberhomeloans.com

James “Fish” Fisher Central Division Builder Manager 10400 Baltimore Street NE Blaine, MN 55449 james.fisher@caliberhomeloans.com

This is an advertisement from Caliber Home Loans, Inc. * Scotsman Guide’s Top Mortgage Lenders 2019 rankings available at www.scotsmanguide.com For information regarding specific terms and rate lock extensions **Please consult your Caliber Home Loans, Inc. Loan Consultant for information regarding specific terms and rate lock extensions. Additional fees may apply. ***Lock and Shop program is not available on bond and non-agency loan products. Lock fees will be applicable for extended locks once a property is selected. Please consult your Caliber Home Loans, Inc. Loan Consultant ****Caliber does not retain servicing on all loans originated and may not service loans originated for the entire term of the loan. Ask your loan consultant for further details

Caliber Home Loans, Inc., 1525 S. Beltline Rd Coppell, TX 75019 (NMLS #15622). Copyright © 2021. All Rights Reserved. Equal Housing Lender. For real estate and lending professionals only and not for distribution to consumers. Distribution to the general public is prohibited. Minnesota Residential Mortgage Originator License: MN-MO-40149066, This is not an offer to enter into an agreement. Any such offer may only be made in accordance with the requirements of Minn. Stat. Section 47.206 (3) and (4).

LUXURY INTERIOR FINISHES

At Schwieters Companies, we place a high value on team continuity and the advantage it provides to luxury homebuilders and homeowners.

Our Master Carpenters, Customer Service Supervisor, and Quality Walk Supervisors have all been a part of our team for over 20 years. Our Millwork Shop Manager has been with us for 29 years, and our Labor Scheduler for 30 years. This longevity empowers us to provide a consistent and reliable experience, resulting in a finished product your homeowners will love.

Contact Carly Schwieters to learn more: 612.669.8844 carly@schwieterscompanies.com schwieterscompanies.com

Q+A

Q. Why do the smaller homes I build, particularly slab-on-grade homes, continue to struggle with blower door scores?

Stated simply, the mathematical formula used to determine the Air Changes per Hour divides the results of our testing by the total volume of the home. This means that smaller homes frequently are at a disadvantage by virtue of their size. Builders may find they need to employ tactics and a higher level of scrutiny on these smaller homes than they ever needed to on bigger homes, such as those with basements and second stories. Beyond code compliance, customer comfort, and the overall efficiency of the home, the blower door score is a critical data point in many builder incentive programs. It consistently pays off to make efforts to obtain the best envelope tightness you can within the cost/benefit calculation.

Ask the

Green Building Expert with Kevin Byrnes, DPIS

Have business questions you’d like to hear from an expert on?

We’ll feature a Q+A with various experts and topics each issue. Send your questions to ASK@HOUSINGFIRSTMN.ORG

Q. I make great efforts to build a tight home, but my customers still find there can be cold spots and comfort issues. What am I doing wrong?

A tight home does not guarantee a home without comfort issues. A properly designed and balanced HVAC system ensures optimum comfort throughout the home with minimum effort and reduced warranty call-backs. The science of envelope tightness has come a long way in recent years, but distribution of conditioned air is still often left to guesswork and habit. Working closely with industry experts, particularly as it pertains to such challenging areas as bonus rooms and cantilevers, can go a long way toward a seamless experience for your buyers. A quality home is designed in concert with the mechanical systems, not despite them.

Ensuring a comfortable home starts at the design phases of the home.

Q. As an industry, we were pushed really hard about slabedge insulation over the last few years. It seemed like an unnecessary expense and hassle. What was the deal?

We build a lot of slab-on-grade and walkout homes here in the Midwest. These homes are greatly influenced by slab-edge insulation.

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

23

Q+A

We also find that a lot more homes with walkout basements are seeing “finishes,” meaning higher occupancy in these spaces. Studies vary, but the edge of a slab can be responsible for as much as 60% of the overall slab heat loss. Too often, people equate energy transfer to the idea that “heat rises,” but that is just one of the principles for how heat behaves. It also moves from hot areas to cold areas. And because your feet are such incredible appendages that can have a huge impact on your comfort level, if you’re walking on cold surfaces, you are losing heat. Unfortunately, a thermal break around a slab edge can often be done incorrectly, or damaged after it was properly installed. Partnering with your concrete contractor to choose the best location, ensuring that the thermal break rises all the way up to the surface of the poured slab, and then making sure this rather delicate foam boundary is adequately protected is surprisingly important.

Q. I’m incredibly busy when you’re requesting to schedule an inspection.

This is particularly true around insulation time. Can’t we just get this done at one time?

Unfortunately, no. These energy ratings are a process where qualified and properly trained associates are harvesting data that reflects the efficiency of your home. There is a lot of information collected during an insulation visit that cannot be collected later.

Miss these, and more often than not, you will not be given the energy performance rating that accurately represents the home you are building. This can be things such as the volume and grade (quality of installation) of spray foam in rims and cavities, as well as the batt insulation in your ambient walls. When you are investing the time and money to do the job correctly, allow yourself to get a rating that properly reflects your workmanship. These scores will help earn valuable building incentives in the form of rebates as well as tax credits, but also have strong appeal to clients who are considering energy efficiency when they select a home to purchase. Make time to accommodate these ratings.

KEVIN BYRNES DPIS

Kevin Byrnes is a Minnesota sales manager at DPIS Builder Services and has been working in the energy field in the state of Minnesota for almost a decade.

When he’s not at his day job, he’s a firefighter in the Twin City Metro.

24

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

FIVE HOUSING FIRST MINNESOTA BUILDERS RECOGNIZED AS TOP ENERGY-EFFICIENT BUILDERS IN THE NATION Through the success of the Minnesota Green Path program, Minnesota homebuilders continue to lead the nation in energy efficiency in 2020.

According to an annual report by the Residential Energy Services Network (RESNET), five Housing First Minnesota builder members who build more than 50 homes a year made the list of the top 20 builders nationwide with the lowest average Home Energy Rating System (HERS) Index scores.

Hanson Builders, Key Land Homes, OneTenTen Homes, Robert Thomas Homes, and Lennar Minnesota all made the list with HERS scores well below the average of 58. All five

MNGREENPATH.ORG GREEN PATH IS SPONSORED BY

participate in Housing First Minnesota’s Green Path energy program, which provides homebuyers with a Home Performance Report (HPR) detailing their HERS score and their air exchanges.

“It’s really a testament to the Green Path program that we have five of the top 20 builders in the country as far as energy efficiency,” said David Siegel, executive director of Housing First Minnesota.

“These builders are shining examples of how many in our industry go above and beyond to create high-performing, energy-efficient homes that have a lasting impact on our communities and our environment.”

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BUSINESS TIPS

Enhance Your Entry Get the most out of new home and remodeling tours with these five tips Home tours are massive marketing opportunities for builders and remodelers in Minnesota. Hundreds of clients coming right to your front door as they explore what the area has to offer. So, how do you get the most out of your entry and make an impact with your homes? Here, we share five tips as you prepare for your next tour.

26

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

Curate Photos Having the right visual assets to promote your homes and your brand is an important step to making the most of a home tour. Hiring a professional to take highquality photos is often the fastest and easiest way to get the best shots and will give you compelling images to catch a homebuyer’s interest and motivate them to explore more. If you are working on mastering your own photography, consider lighting, staging, and the composition of the shot.

If you’re starting a remodel project that you know you might enter in a tour, take a wide array of before photos as well. Having various angles to show future clients will help tell the story of the full transformation.

These photos can be used to market your homes during the tour across social media, your website, blog posts, and print materials, and they can help when pitching your story to different press outlets in the future.

Strengthen Your Social Media Strategy By now, most builders and remodelers know the value of maintaining active social media channels. Tailoring your social strategy during special events such as the Parade of Homes can help increase engagement and connect you with new leads.

Home Tour, but you can also use the logo kits to create visuals that fit within your own brand guidelines—as long as you are participating in that particular event.

Pitch Your Stories

After you’ve gathered great photos of your home projects, it’s time to put them to work. Curate which photos you want to share that will pique the interest of tour-goers and inspire them to stop by and learn more. And, if you have photographer permission, sending your photos to the producers of the home tour and industry partners to share on social is a great way to get even more potential free promotion of your homes.

Do your homebuyers have a unique story to share? Have a new or trending product in your model home? Maybe your designer is passionate about creating stellar work-from-home spaces for your clients. Pitch your story! Writers and editors are looking for compelling stories and expert sources to create valuable content for their readers. It helps establish your brand authority and, depending on the topic, can give readers a deeper insight into what it’s like to be your client.

Along with photos of your project, check for assets you can share on your social channels and be sure to tap the resources that are available to you. Housing First Minnesota provides graphics to participating builders and remodelers to promote the Parade of Homes, Remodelers Showcase, and Artisan

When pitching your story, keep in mind many writers and editors are working on editorial months in advance. For example, if you’re thinking of pitching a story for the Parade of Homes or Remodelers Showcase fall guidebooks, start gathering your details and photos during the spring tours. And many editors will

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

27

BUSINESS TIPS

want to be the first to share a story, so be transparent if the story has already appeared (or will be appearing) in another publication.

Along with clear details on what makes your story unique, don’t forget to include photos! Providing images allows editors to visually interpret how the story might fit in with the rest of the context mix of a publication.

Collaborate Within the Industry As you head into a home tour, a collaborative approach gives all participants a larger pool of content to incorporate into their content strategy. If you are a builder or remodeler with a home in a tour, creating a plan with the partners that made the home possible is a great way to cross-promote your entry. From your interior designer and architect to your lighting and window manufacturers, tap into your project suppliers’ marketing teams to help amplify content. Think: Instagram takeovers with suppliers who will promote your homes while showcasing their products or a blog post sharing which homes feature a particular supplier’s product or service.

Complete Your Home Profile & Builder Profile Many tour-goers first interaction with your company will be online, so make sure you are putting your best foot forward virtually. Upload photos, take advantage of the virtual tour options online at ParadeofHomes.org, and write a robust home description. A well-written home description will draw homebuyers in and help them imagine what it’s like to live in a particular home or community.

If you have a home in the Parade of Homes or Remodelers Showcase, your builder or remodeler profile may be awaiting your finishing touches. Add even more photos of past projects (and don’t forget to tag these images so they appear in the online photo galleries), set your location criteria, and upgrade your profile to add videos and social links to connect with new clients.

Entering the Parade of Homes, Remodelers Showcase, and Artisan Home Tour is a big commitment and an excellent marketing tool to reach new clients, so make sure you’re getting the most out of each entry. After you’ve entered, prepared, and fine-tuned your marketing plan, you’re ready to shine in upcoming home tours.

PARADE OF HOMES SPONSORS

28

The Digest

REMODELERS SHOWCASE SPONSOR

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

Upcoming Tours: ARTISAN HOME TOUR June 11-27, 2021 FALL PARADE OF HOMES September 11-October 3, 2021 FALL REMODELERS SHOWCASE October 1-3, 2021

BUSINESS TIPS

THE 5 Ps OF

Business Management Successful business management includes the creation and nurturing of systems that generate profit and minimize risk. Having a passion for your business is important, but that alone isn’t enough. You need to understand the basics of business management and always remember that managing is separate from the “doing” of the business.

Here, Shawn Nelson of New Spaces shares an overview of the five Ps of business management.

1. PLANNING

2. PURPOSE

The planning process is the blueprint for your company and typically takes 15-20% of a business owner’s time. Building out a formal business plan includes a road map, a decision-making tool, a team-building instrument, a commitment, and an accountability tool.

As you create a business plan, consider the three functions of a business and tailor your plan for each unique function.

Three Functional Areas • Admin – Financial Plan • Sales – Marketing Plan • Production – Project Plan Within these plans, create goals that are SMART—specific, measurable, actionable, relevant, and timely. Creating these long- and short-term goals will help guide your actions and strategies to build your business.

While planning is an essential step to preventing poor performance and it is important to pay attention to the details of this process, it is equally important to remember that these plans do not need to be overly complicated.

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The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

With a plan in place, next will be how to define your business in terms of form and organizational structure—with an emphasis on systems and procedures.

When creating a system, follow these steps to continually improve your processes.

• • • •

Define the Process Identify the Weaknesses Implement Changes Track Results

Process mapping will help you define what happens each step of the way and includes a workflow chart to define who is a part of that step and when it occurs. By implementing process maps and digging into your current systems, you’ll discover ways to save company time and improve your clients’ experiences.

3. PEOPLE

Next, a business owner needs to determine who will accomplish this plan. Business managers are often responsible for recruiting, hiring, training, motivating, promoting, and dismissing staff. This is often an area that is either a real strength or a big weakness for managers, but investing in yourself can pay dividends.

4. PERFORMANCE

In most instances, company failures don’t come from lack of planning, but rather from a lack of executing. Execution must be done all the way to be beneficial, so having a plan that is simple and straightforward can still be enormously valuable.

It can often be difficult to carve out the time to look inward and motivate oneself, but it is essential to assess your own work to prioritize needs. Creating to-do lists, time blocks in your calendar, and knowing when you work best will help you become more successful.

Delegation is essential for company growth, but it’s important to provide enough direction and to follow up with the responsibilities you delegate.

What to delegate:

READY TO LEARN MORE? Shawn’s full on-demand course, The Building Blocks of Business Management, is available now at CONTRACTORU.COM

• • • • •

Routine decisions Opportunities for experience and training Tasks that increase how many can perform Functional responsibilities that free your time Tasks someone can do better than you

5. PROGRESS

What gets measured gets managed, so the more things that are tracked, the stronger your business will become over time.

Utilize performance criteria to review progress toward your defined goals.

Track these items to evaluate your progress as a business:

An accurate and detailed job description is not only useful when recruiting new employees, but also for measuring an employee’s responsibilities, growth, and accomplishments.

When selecting people to help accomplish your goals, there are various types of workers you can choose based on your specific needs.

• Part-Time and Full-Time Employees: Consider how much work you need done, along with the benefits and compensation differences for these different types of employees.

• Trade Contractors: They often have fixed prices, and you aren’t paying them when there isn’t work, but you’ll have less control than you would with an employee.

• Professional Services Firm: You may tap these firms when you need specific expertise—for example, an attorney, marketing firm, or insurance specialist.

As you work to retain and motivate employees, a regular performance evaluation will help you identify and communicate specific improvement action steps. You want your employees to be successful, and they want to be successful. Having these clear processes in place to communicate feedback helps link the work they are doing to the overall business plan.

• • • • •

Fundamental business outcomes and processes Errors and deviations Timeframes People – with caution Places

Completing this feedback loop by looking back on your progress allows you to better plan for the future. With a strong understanding of the five Ps of business management, a company is much more likely to have long-term success.

WRITTEN BY SHAWN NELSON NEW SPACES

Shawn Nelson is the second-generation owner of New Spaces, a design-build residential remodeling company, and owner and founder of Blue Sky Skylights, LLC. Shawn is also a Bloomington City Councilmember, Burnsville Chamber of Commerce board member, NAHB Life Director, and past president of Housing First Minnesota. Shawn’s favorite tool is his computer as he leads the News Spaces team through a practical approach to home remodeling.

Learn more about Shawn and the New Spaces team at NewSpaces.com.

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

31

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BUSINESS TIPS

Effective Leadership THROUGH UNCHARTED TERRITORIES The pandemic has affected each of us differently but one thing we can all agree on is that business as we knew it has forever changed. As leaders, we must be flexible to these changes.

Does your leadership style allow for that? Are your skills keeping up? Keep those questions in mind as we look at just a few of the ways business has changed in the last year.

Workspace Workspaces have changed significantly. Work-From-Home (WFH) and Work-From-Anywhere (WFA) are the norm, not the exception. Even in businesses that work primarily in the field and at clients’ sites have seen changes. Cramming 20 people into your office lobby for the morning circus no longer works. Meetings with clients and prospects at their kitchen table is no longer the accepted norm. Thankfully, great video tools are now readily available to make client meetings still possible. One-on-one meetings with your team members can happen on video calls. And, after a few frustrating months, it seems as if most of us are getting close to becoming adept at using those tools. Though it’s not what all of us would prefer, it certainly has helped keep many companies moving forward with business as usual.

We’ll never go back to the way

things were in 2019. The top business leaders are incorporating these new ideas about the workspace into their long-term plans. Are you?

Employeeemployer relationships With tens of millions of people in our country and hundreds of millions worldwide experiencing layoffs, furloughs, pay cuts, and other less dramatic disruptions, the foundations of trust in the employee-employer relationship have been shaken, if not destroyed.

What does this mean for us as leaders? How can we rebuild and strengthen relationships with our people? Having clear strategies for engaging and empowering people are more important than ever in the current chaos. This is especially true for those businesses dependent on flexible seasonal staffing.

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

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BUSINESS TIPS

Business planning We learned pretty quickly that traditional business planning and management is no match for a pandemic. Though we had great plans and big ideas, a lot of that work went to waste as those goals had nothing to do with re-shifting entire business models to adhere to new guidelines and regulations. How can we think differently about how we plan for the next month, quarter, or year?

Thousands of businesses in our country have already closed and many more are on the brink. However, many businesses will survive and move forward in this new reality. Companies with strong, flexible leaders who are excited to face the challenges head-on, those with a compelling vision communicated clearly and often to an aligned team, and those that run on meaningful, timely data, will be leading the pack. How do you get there?

We have a few suggestions.

1

CREATE & COMMUNICATE A COMPELLING VISION

A foundation of business success begins with a clear plan for the future that makes a difference in the lives of those served.

This vision must include both a long-term view of a future better than today as well as plans for short-term tactics that move the business forward in meaningful ways.

It must also include plans for building and maintaining the desired culture based on shared values. And it must be flexible enough to adjust to our fast-changing society and economy.

To make the vision compelling, effective leaders, now more than ever, must be skilled and practiced at clearly communicating the vision. Some of our clients who excel at this communicate

WRITTEN BY JERRY OLSON THE RESULTANTS

their company’s vision through banners, posters, or words painted on the walls of their buildings. Others include it on their business cards and in their email signatures. We even have one owner who has it tattooed on his arm! Just joking about that last one, but you get the point.

Your company’s vision cannot sit on a piece of paper in the owner’s office. To get your team fully aligned around where you’re going, they have to be privy to the plan, engaged in the business, and ready to adjust when things change.

2

ALIGN YOUR TEAM

Great leaders successfully navigate turbulent times by making sure their team is aligned with the vision for the future, the values on which the culture is built, and a clear, prioritized action plan broken into weekly increments, with a rhythm of weekly tracking and check-ins that focus on adjusting to what’s happening in real time.

So, how do you align your team around a single goal? Better yet, how do you optimize your team members’ skills and strengths to come up with and make that next great idea a reality? We truly believe a team of people aligned with a compelling vision all working in harmony can bring to life great ideas an individual can only dream of.

In order to overcome the eroding employer-employee relationship, this alignment must exist throughout the organization. Successful business leaders execute tactics that drive this alignment throughout the company, embedding it in all areas including the recruiting, selection, and performance management processes. This includes setting clear expectations for how the alignment comes to life in the direction of the

company as well as the behaviors of the people and the results of their work. It also includes regular one-on-one meetings with your team members with meaningful feedback on how they measure up to the expectations. This is important in every business in the current upheaval and even more so for every business with people who are remote and spend their days out in the field.

3

IDENTIFY & TRACK MEANINGFUL DATA

Especially in a time of chaos, measuring progress toward a compelling vision with meaningful, actionable, and timely data is critical. Using real-time data tracked on a weekly cadence to manage a business can accelerate the business quickly past your competitors. This is especially true in the construction industry with diverse projects across a large geographic footprint with a workforce that leaders might seldom see.

Many business systems collect all sorts of data and really, most business leaders and managers have more data than they know what to do with. The secret to success is to identify the few metrics that are most meaningful. We recommend a mix of forward-looking activity-based metrics as well as backward-looking data that confirms the results. With meaningful and timely data, an aligned team can make decisions to adjust the business responsively to a quickly changing environment.

We’ve seen success in businesses with leaders who consistently communicate a compelling vision, gather an aligned team, and empower them to manage the business, all while keeping their fingers on the pulse of meaningful, timely data.

Jerry Olson is a business advisor with The Resultants. The Resultants are a business advisory team that advocates for the best interest of your business, using a process that has proven time and time again to help companies build value and achieve personal and professional success.

To learn more about Jerry and The Resultants, visit www.theResultants.com.

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HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

Painting Excellence Trust. Same name, same people, same proven results since 1985.

Capacity. Over 100 professional painters can accommodate nearly any demand, large or small!

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952-469-5901 www.cityscapepainting.com APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

35

BUILDING FUTURES

Housing First Minnesota Foundation GALA

August 7, 2021 JW MARRIOT, MALL OF AMERICA

Foundationgala.com EVENT REGISTRATION OPENS MAY 7, 2021

Become a Sponsor Support a night of industry generosity that will bring together builders, remodelers, suppliers, and Foundation supporters to continue the life-changing work of building and renovating transitional housing for Minnesotans experiencing homelessness.

During these uncertain times, the work to end homelessness is more important than ever. Please consider becoming a sponsor to help make a difference and build futures through housing.

Your Sponsorship Supports Our 2021 Community Build Projects Housing for Heroes • Two projects in North Minneapolis • Building transitional housing for homeless veterans • Service organization: Minnesota Assistance Council for Veterans

Housing for People with Intellectual Disabilities • One project in Plymouth • Expanding and renovating a housing facility for people with intellectual disabilities • Service organization: Homeward Bound

Family Recovery Housing Become a

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• Up to 12 apartment units in Minneapolis • Renovating apartments used as transitional housing for mothers who are in a chemical dependency recovery program to be able to live with their children • Service organization: Avivo

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HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

MEMBER SPOTLIGHT

Building A Strong Foundation The Housing First Minnesota Foundation’s newest board members share how they got started in the industry and why they are committed to giving back.

by Wendy Danks

The Housing First Minnesota Foundation partners with reputable nonprofits that are in need of additional capacity to house and provide services to people experiencing homelessness. To carry out its mission and vision, the Foundation needs the talent and support of builders, remodelers, suppliers, and volunteers.

Through the board of directors, committee members, build partners, and so many more generous supporters, our Foundation is able to build futures through housing.

What drives these generous members that guide our charitable arm? Five of the newest additions to our Foundation’s board of directors share how they got their start in the industry and why they are committed to ending homelessness in Minnesota.

WANT TO GET INVOLVED? Help build new lives for Twin Cities families and individuals experiencing homelessness.

HOUSINGFIRSTMN FOUNDATION.ORG/ GETINVOLVED

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

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MEMBER SPOTLIGHT

Amy Hendel Hendel Homes

Coming into the business “kind of by accident,” board member Amy Hendel discovered a real love for the homebuilding industry. Her husband, Rick, had been pursuing medical school but, like a lot of young couples, picked up a side job to help with the bills. He’d been working construction when his biology partner connected him with a high-end remodeler on Lake Minnetonka, literally changing their lives.

“He fell in love with building,” Amy recalls. And he saw an opportunity. Instead of how most builders offered just a few stock options to clients, Rick wanted to open up the process to allow clients a vast array of choices specific to their project. “He’s very gifted in high-end construction implementation.”

For the first two years, Amy continued her IT consulting business while helping Rick in the evenings. “I always say, I must have been young and in love to support him in this venture,” she says with a smile.

As the business grew, Amy realized she was just as captivated, even finding an outlet for her creative side. So, two years in she joined the company full time. She now handles much of the marketing, sales, and business operations.

The couple’s skillsets dovetail perfectly, or as Amy humbly says, “we work well together.”

Joining the Foundation board was a natural step for Amy. “We’ve always served and been a part of several nonprofits and foundations that give back. So, giving back my extra time to our industry was a no-brainer for me.

“Personally, one of my mottos is service before self,” she explains. “We can become so selffocused in our jobs and lives, but whenever you give it’s not about you, it’s about somebody else.

I love that. Being reminded of others’ struggles creates a new perspective and purpose within our own lives. It’s what we’re called to do.”

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HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

We can become so self-focused in our jobs and lives, but whenever you give it’s not about you, it’s about somebody else. I love that. Being reminded of others’ struggles creates a new perspective and purpose within our own lives. It’s what we’re called to do.”

I reached out to Donnie Brown, the Foundation director, who put me on the Foundation’s Dream Home committee, and I had the most fun I’d had in a long time.”

Kathy Raph Gotcha Covered North Suburbs

From banking to window treatments seems like a big change, but for Kathy Raph it was a natural next step. Her career with US Bank started right out of high school. “They’re a fantastic company to work for,” she explains. “I worked there through all the big events of my life and figured I’d be there until I retired.”

Her growth with the company took her from the teller window to retail banking to training, running the IT service desk and strategic project management. It was a long and loved career until the economy and restructuring left her with a chance to try something new.

With a lot of time on her hands,

Kathy’s plans started with exploring possibilities. She signed up for a franchise seminar more for something to do than a serious desire to own one.

As luck would have it, a snowstorm left her the only student in the class and gave her a chance to learn one-on-one about the business.

She was a little surprised to learn that franchising resonated with her, bringing back her love and commitment to working with and helping others. “I started in service work at the bank and over the years it became less and less a part of my job,” Kathy remembers. “And I grew up in a big family where service and stewardship were just what you did.”

After exploring a number of options, the Gotcha Covered franchise checked all her boxes. As one of five in the Twin Cities, Kathy and her fellow owners decided to join Housing First Minnesota where she learned about the Foundation. She naturally gravitated toward helping and got the other four to pool resources and supply window coverings for the Housing for Heroes Bloomington build project.

Kathy was hooked.

“I reached out to Donnie Brown, the Foundation director, who put me on the Foundation’s Dream Home committee,” Kathy says. “And I had the most fun I’d had in a long time.”

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

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MEMBER SPOTLIGHT

I was raised knowing that we should be giving back. Whether through our time or a donation. Giving has always been engraved in the way I grew up.”

Jeremy Larson Hampton Companies

Like a lot of second-generation building professionals, Jeremy Larson plans to take over the family business when his dad retires. But unlike many, he took a short detour first. “I wasn’t sure I wanted to get into the industry,” explains Jeremy. “I did want to work with my dad, but I decided to go to school to be a golf pro instead.”

It didn’t take long to realize that a career in golf just wasn’t for him, but it was important for Jeremy to get some outside experience. “My dad had a rule that he’d never let me work for him until I’d worked for someone else for four years,” he noted.

When Jeremy told his dad he was

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ready to come “home” to start his career in the business, he soon learned what it’s like to take over a thriving and multi-faceted business. “I started with door-knocking and sales for our roofing and siding division,” Jeremy states.

Soon Jeremy was running that division and doing hundreds of jobs a year. By then he branched out to experience and manage pretty much every aspect of the business.

“Today, primarily what I do is real estate land acquisitions and city entitlements for our memory care facilities,” he says. That division builds, owns and manages these much-

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

needed properties.

As a member of Housing First Minnesota, Jeremy was naturally drawn to serving on both golf committees. And as he’s good friends with Bob Bennett (a driving force in the Foundation’s work), getting involved with our Foundation was a given.

“I was raised knowing that we should be giving back,” Jeremy says. “Whether through our time or a donation. Giving has always been engraved in the way I grew up.” And give back he has, both through his time on the board and his firm generously donated roofing labor for two of the Foundation’s Housing for Heroes projects for veterans.

Ricky Cheath Movement Mortgage

Samnang, which means lucky in Cambodian, is Ricky Cheath’s given name. The son of a high-ranking military man, Ricky was born in the horrific days of Pol Pot and the Khmer Rouge. Fleeing to escape the genocide, he was just a baby when his family began the months-long trek to Thailand and freedom.

That was when his name was proven prophetic. “Mom and dad said they didn’t think they had a good chance of escaping carrying a 1-year-old,” Ricky explains. “But apparently I didn’t cry very often during the trip.” This was all while they slept in trees and walked through fields of landmines before reaching a Thai refugee camp.

Sponsored by a church in Janesville, the family made their way to Minnesota during the 1980s where Ricky’s parents took multiple jobs, his mom learned English, and his dad went to vocational school. The family, now of seven, graduated from a tiny two-bedroom apartment to bigger and bigger rental homes until they were finally able to purchase a home of their own when Ricky was in sixth grade.

“My parents sat us down to tell us they had purchased the house and we no longer would have to move,” says Ricky. “I was too young to understand what that meant, but that was the year my life changed again.”

The stability that homeownership provided for his own family has informed his decisions ever since, making his work both with Movement Mortgage and the Housing First Minnesota Foundation so meaningful.

“After going to college and working as a personal trainer, I realized something was missing,” he explains. “When a college friend suggested I come to work in the mortgage industry, I had a flashback to what that meant to my family.”

Fifteen years later, Ricky is regional director for Movement Mortgage, but hasn’t stopped there. He’s given countless hours to multiple nonprofits—including our Foundation—and he is devoted to working to end homelessness and reduce the homeownership disparity gap that exists for minorities.

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

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MEMBER SPOTLIGHT

Gary Kirt

Bell Bank Mortgage

Like a lot of people who are naturally drawn to both the housing industry and philanthropy, Gary Kirt had a hardscrabble childhood.

Losing his dad at age six meant the family moved around a lot.

By the time Gary was a senior in high school, they had moved to the Twin Cities and he got involved with the Boys and Girls Club. That’s when he decided it was time to take control of his housing destiny by buying his very first home.

“That’s when I started investigating selling real estate as a career, but I became more interested in the financing part of the business,” says Gary.

“Although I had a difficult time getting interviews, as most lenders required a college degree.”

If you know Gary, you realize that that certainly wasn’t going to stop him. He kept trying until Conservative Mortgage Company took a chance on him the summer after graduation. He worked hard, learned the business, and discovered he had a lot more to offer.

“After 10 years at Conservative, I got the opportunity to buy the David

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C. Bell Investment Company in 1980,” Gary reports. “Which just so happened to be the 100th anniversary of the firm.”

The rest of Gary’s 50-plusyear history in finance is well known across the industry. But he didn’t stop there, his work in philanthropy and service has been just as storied.

Gary started by giving back to the Boys and Girls Club, serving on its board for over 25 years and remains a trustee still. He’s volunteered for over 30 years with Simpson Housing Services, providing and serving hot meals at least once a month and where both he and his wife are emeritus board members.

He’s been supportive of the Housing First Minnesota Foundation as well. “I was fortunate to work with most all of the builders in the Twin Cities market and have always felt that Housing First Minnesota and its Foundation has a tremendous pulpit from which to make a positive difference in our homeless community,” he said. “Now that I’m mostly retired, I jumped at the opportunity to join the board.”

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

I was fortunate to work with most all of the builders in the Twin Cities market and have always felt that Housing First Minnesota and its Foundation has a tremendous pulpit from which to make a positive difference in our homeless community.”

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APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

43

Media in the

From the Spring Parade of Homes to the latest industry data, check out some of the places Housing First Minnesota has been mentioned on social and in the press this past quarter.

Spring Home Tours The Parade of Homes and Remodelers Showcase made headlines this spring with more than 350 new homes, 34 remodeled homes, five stunning Dream Homes, and an integration with the recently launched homeownership campaign.

@patrickkennyrealtor

Fox9: The Parade of Homes tour opens the doors to some of the Twin Cities dreamiest homes

WCCO: The Spring Parade of Homes Begins This Weekend

@shaynewells Tour a $1.255M Minneapolis dream home during Parade of Homes

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The Digest

Offices, porches, wood: Top 10 trends from this spring’s Twin Cities Parade of Homes

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

SEEN + HEARD

@HOUSINGFIRSTMN

Northern Design Build Expo Prep The education sessions at the Northern Design Build Expo were jam-packed with useful information to help attendees with their businesses. Check out these behind-the-camera shots from some of our expert speakers at the Expo.

Tim Brown

Lynne Jensen-Nelson

For Twin Cities builders, 2020 was year of the singlefamily home

No Slowdown for Metro Home Construction

Single-family homebuilding surges 32% in Twin Cities

Housing First MN Foundation

Single-family permits up, multifamily down in metro

Mortgage Rates Today – Singlefamily homebuilding surges 32% in Twin Cities

Foundation Feature The Worst of Times, the Best of Giving

Housing First Minnesota Foundation director, Donnie Brown, was selected to share how our Foundation persevered fundraising efforts during this challenging time in the recent issue of Mpls. St. Paul Magazine.

Permit Data Permit data released by Housing First Minnesota is featured across the metro.

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

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SEEN + HEARD

&

Member News Announcements HAVE NEWS?

SEND YOUR ANNOUNCEMENTS TO LAURA@HOUSINGFIRSTMN.ORG

Condolences Remembering Joe Weis Minnesota’s housing industry lost one of its leaders when Joe Weis passed away in late January. Weis and his brother Eugene launched Weis Homes in 1960, a company that has grown to be one of the largest providers of affordable housing in Minnesota and neighboring states.

Congratulations DWELL44 Named Face of Modern Design Congratulations to Jon Coty of DWELL44 for being named the Face of Modern Design by Minnesota Monthly magazine!

Outside of the company’s success, Joe was known as one of the most prominent housing industry figures in Minnesota politics. Joe participated in many local, state, and national trade groups, and he was a tireless housing advocate. He will be greatly missed.

Health has never been more front of mind.

Offer your employees a powerful, industrybacked health insurance program at amazing rates.

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The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

New members

new roles

DECEMBER 2020– FEBRUARY 2021 Alliant Finance, LLC Jake Machacek

651-470-1227

biota Landscapes Steve Modrow

biotaLandscapes.com | 612-781-4000

Chisel Architecture Sara Whicher

ChiselArch.com | 952-475-4930

Dane Allen Homes, Inc. Dane Willenbring

DaneAllenHomes.com | 612-221-8086

Michels Homes Welcomes Lead Designer

Del Webb

Michels Homes welcomed Megan Dent to its team as lead designer. Megan has diverse experience in interior design, plumbing, and kitchen and bath design. Her favorite part of the design process is space planning and layouts, and she is skilled at making sure spaces function well for her client’s lifestyle. Welcome, Megan!

PJ Cushing

DelWebb.com | 952-229-0766

Dolezal Creative Design Build, Inc. Jessica Dolezal

DolezalCreative.com | 952-886-7134

Fox Homes, LLC Briana Mohler

FoxHomes.com | 612-385-7906

Greater MSP Homes Team Thang Holt

GreaterMSPHomes.com | 612-767-5800

Iron River Construction, LLC Tracy Dahlin

IronRiverCo.com | 952-442-1762

Lakes Sotheby’s International Realty Michael Bartus

HomeTwinCities.com | 952-400-7000 Peter Jacobson

David Siegel

Lowell Pratt

M General Contractors, LLC Michael Behm

Project Build Minnesota Board Members Peter Jacobson of Lake Country Builders has taken a seat on the board of directors of Project Build Minnesota (PBM), along with Housing First Minnesota’s David Siegel. Peter’s interest in construction was piqued in high school, and now he wants to share his passion and perk the interest of young adults. Peter will be one of PBM’s school outreach volunteers.

At the end of 2020, PBM said goodbye to long-term board member Lowell Pratt of Pratt Homes. We are grateful for his service to the industry and helping establish the organization.

MGenCon.com | 612-221-6687

Sussel Corporation Patrick Russell

651-645-0331

The Fortress Project, Inc. Brandon Perry

FortressProject.org | 715-629-7015

Wehking Electric, Inc. Jeff Wehking

320-589-8898

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

The Digest

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DISCOUNTS

Member Discounts

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Save even more with National Purchasing Partners such as: 22% discount on monthly cell phone service with Verizon, up to 8% in rebates with Office Max, free nextday business delivery on office supplies from Staples, save up to 73% off retail pricing at Batteries Plus Bulbs plus more.

Housing First Minnesota has brought together an array of members-only benefits that positively impact your bottom line. We seek companies that thoroughly understand the building industry and provide products at rates generally not available on the street.

Give these folks a chance to see what they can do. We think you will find they can save you money and provide you better service.

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HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

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APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

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MEMBERS O N LY

Homes on the spring Parade of Homes were provided yard signs to spread awareness of the Homeownership is all of it campaign.

The Movement to Grow Homeownership Opportunities Home has become so much more to us in recent times. It is a sanctuary, a safe place, a school, an office, a chef’s domain, and so much more. With all its messy beauty and genuine love, a house is the place where life happens.

It’s where we grow up and grow old. It’s where we find comfort. It’s where our families gather. Homeownership builds self-esteem, wealth, health, and even strong communities. And yet, far too many Minnesotans are priced out of the opportunity for homeownership.

The problem is twofold. Minnesota has too few homes for sale (low inventory), and new homes being constructed today are more expensive due to regulations, laws, and restrictions placed on our member homebuilders.

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Housing First Minnesota is on a mission to change this. The answer in many ways is simple—we need to build thousands more homes beyond our current pace, with a particular focus on affordability. That will require changes in zoning, land supply, codes, permitting, and resource management.

But it can be done.

Last year we launched our new homeownership campaign, Homeownership is all of it, which reminds Minnesotans of the benefits of homeownership and the broad desire of nearly 90% of our state’s residents to own homes. This spring, we announced the campaign’s integration with the powerful Parade of Homes brand to help our industry promote

HOUSING FIRST MINNESOTA | APRIL–JUNE 2021

the homeownership message. This is a multi-year effort by your industry association to create a campaign that can be used across all of our programs and brands, with the simple goal of increasing the opportunity of homeownership for everyone, everywhere.

We seek to create a powerful mass movement that applies pressure to our policymakers such that they will finally address these long-standing issues that have constricted our housing market.

The end result—you can build what the market demands. We are confident that if we open up the marketplace, our industry will respond with highquality, energy-efficient, durable starter homes and bring the opportunity

for homeownership to all Minnesotans who desire it. In the process, we’ll return Minnesota’s housing ecosystem to stability and sustainability.

The impacts of the current housing shortage are clear today. The available inventory for sale is one-fifth of what would be considered normal and sustainable. The price of resale homes and newly built homes is rising far more rapidly than incomes. The homeownership equity gap in Minnesota is one of the largest in the nation with 76% of white families owning a home, but only 25% of Black families owning a home.

The Homeownership is all of it campaign is strengthened with each new advocate.

So how can you get engaged? Here are four simple actions that will advance this cause: • Go to the HomeownershipMN.org website and sign up to receive the campaign newsletter.

• Place Homeownership is all of it yard signs at your homes during the Parade of Homes.

• Connect with the campaign on social platforms and share the campaign social graphics to encourage more participation in the movement.

• Share your homeownership story at HomeownershipMN.org.

For those of you that are willing to advocate for homeownership, know that you are making a substantial impact on the issues that face housing. Our homeownership campaign is creating a movement to drive policy decisions that will restore the ability to build new homes at all price points.

We need to build more houses so more people can benefit, because homeownership really is all of it. We thank you in advance for your support.

DAVID SIEGEL

Visit HomeownershipMN.org to sign up for the newsletter, hear homeownership stories, and learn about the issues.

Join the movement to grow homeownership opportunities.

L EARN M ORE

EXECUTIVE DIRECTOR

Connect with the campaign on social platforms and share the Homeownership is all of it message.

APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

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Advertisers ABC Supply Co., Inc............................................................................ 43 Arrow Building Center.......................................................................... 3 Bell Bank Mortgage............................................................................ 52 Caliber Home Loans...........................................................................20 CenterPoint Energy.............................................................................13 Cityscape Painting Contractors, Inc.................................................... 35 Corporate 4 Insurance Agency, Inc...................................................... 43 Ferguson Enterprises.........................................................................17

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