The Digest | Apr-Jun 2022

Digest T H E

APRIL–JUNE 2022

Housing Affordability Takes Center Stage

MEMBER SPOTLIGHT

BUSINESS TIPS

INDUSTRY DATA

Meet the Ambassador Committee

Social Studies

Top 25 Builders of 2021

TWIN CITIES, MN PERMIT NO. 27734

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PRSRT STD U.S. POSTAGE

Contents APR IL– J UNE 2 0 2 2

26

HOUSING FIRST

5

From the President

6

Elite Sponsors

James Julkowski discusses balance and focus within your association

Thank you to our industry partners

UP NEXT

9

11

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

14

18

20

15

Advocacy in Action

The latest housing happenings at the Capitol

Top 25 Builders

See the regions top-ranked builders

Industry Data

Introducing the Minnesota Housing Dashboard

BUSINESS TIPS

23

Make the Most of Your Online Member Directory

Discover new features on the freshly launched online directory

11

26

Social Studies

31

Q+A: Ask the Charitable Arm

Housing professionals share tips to boost your business through social media

Foundation President Kate Hamilton answers FAQs

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

1

Digest T H E

Board of Directors EXECUTIVE BOARD

PRESIDENT JAMES JULKOWSKI, Julkowski, Inc. VICE PRESIDENT JOHN QUINLIVAN, Gordon James TREASURER ART PRATT, Pratt Homes ASSOCIATE VICE PRESIDENT SUNNY BOWMAN, Dakota County Lumber Company SECRETARY DALE LOEFFLER, Marvin IMMEDIATE PAST PRESIDENT TODD POLIFKA, Custom One Homes PAST ASSOCIATE VICE PRESIDENT RYAN RUTZICK, All, Inc. BOARD + COMMITTEE CHAIRS ADVOCACY CHAIR TONY WIENER, Cardinal Homebuilders, Inc. AMBASSADOR CHAIR KRISTIN REINITZ, Admit One Home Systems ARTISAN HOME TOUR CHAIR JOHN KRAEMER, John Kraemer & Sons, Inc. LARGE VOLUME BUILDERS CHAIR

JAMIE THARP, Pulte Homes of Minnesota, LLC

PARADE OF HOMES CHAIR SARAH DULONG, Ron Clark Construction PAST PRESIDENT REPRESENTATIVE SHAWN NELSON, New Spaces REMODELERS CHAIR SAMANTHA GROSE, Oak & Arrow Homes SMALL VOLUME BUILDERS CHAIR KIRK VAN SLOOTEN, Streeter Custom Builder MEMBER AT-LARGE TIM FOHR, Lennar MEMBER AT-LARGE PETER MARTIN, Pella Windows & Doors

ON THE COVER: INDUSTRY PROFESSIONALS SUPPORT HOUSING AT THE CAPITOL

44

Staff EXECUTIVE LEADERSHIP EXECUTIVE DIRECTOR DAVID SIEGEL FINANCE & OPER ATIONS VICE PRESIDENT OF FINANCE JANICE MEYER FINANCE DIRECTOR TAMMI HALL MEMBERSHIP + EVENTS VICE PRESIDENT OF MEMBERSHIP & EVENTS NICOLE COON

BUILDING FUTURES

35

Small but Mighty Solutions

Learn how your Foundation is working to end veteran homelessness

MEMBERSHIP MANAGER CHRISTOPHER HAGNESS 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

36

Member Spotlight: The Welcome Wagon

Hear from three members of the Ambassador Committee

41

In the Media

44

Photo Gallery

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 CREATIVE SERVICES VICE PRESIDENT OF MARKETING & CREATIVE DAWNITA PARMELY

Housing Day at the Capitol

EDITOR & GRAPHIC DESIGNER LAURA BURT

Member News & New Members

CREATIVE SERVICES & TECH COORDINATOR CASEY SCOZZARI

48

Member Benefits

FOUNDATION

49

The Challenge of Affordability

EVENTS & ADMINISTRATIVE COORDINATOR MELISSA ANDRISANI

46

Executive Director David Siegel shares key housing highlights from the Capitol

ADVERTISING & SPONSORSHIP FULFILLMENT COORDINATOR LAURIE SPARTZ DIGITAL GRAPHIC DESIGNER EMILY DOHENY SOCIAL MEDIA COORDINATOR SARAH HINDERMAN

MARKETING & EVENTS MANAGER ERIN MILBURN

INDEPENDENT CONTR ACTORS ADVERTISING & SPONSORSHIP SALES KORI MEEWES & BRAD MEEWES, and more by Kori DESIGN HANNAH SWAN, Good Creative Co., LLC

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 2022

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FROM THE PRESIDENT

A Balanced & Focused Approach We’ve all heard the advice that winners never quit. We’ve been told that quitting is a sign of weakness, and we’ve probably read something, somewhere that says far too many people quit with success just around the corner. Most leaders in the business development space suggest that it takes three years for a new program to gain traction. So, sticking with it might be the right course of action. But it might not.

In fact, there are clearly moments at which quitting is the best option. Far from being considered a failure, quitting can provide an important moment to refocus our attention and double down on what’s working. Stopping an effort may help us reestablish priorities and devote laser attention to areas in which we can be exceptional.

But it can be very difficult to stop once you’ve begun down a path. It takes great courage to reevaluate. I’ve done it in my own business a number of times.

Several years ago, I was deeply involved in a development project in Rochester, MN and it just wasn’t coming together.

I put on the brakes so I could focus my business on projects that were clicking, and that has worked beautifully.

The ability to innovate, look for new opportunities, stick with it for a period and then decide whether to stay in or move on, all while not losing sight of what’s essential, is a key to the balancing act of business success.

The same holds true for Housing First Minnesota. For industry trade associations, it can often be exceptionally difficult to stop doing programs. And yet, in an era of tight resources and limited time, focus is essential. There really is nothing more critical than tackling the key areas of member needs so we can be sure we are delivering value for the dues investment.

At Housing First Minnesota, our board of directors and staff leadership have done a good job of evaluating efforts,

assessing return on investment, and making smart calls regarding focus.

This year, we continue to devote energy and resources to our advocacy efforts as we seek to address the barriers to building an affordable product in our marketplace. Advocacy is at the very core of what associations like ours do.

We’re at the Capitol lobbying, we’re engaged in the courts, we’re involved in elections, we’re building coalitions, and we’re telling the story of homeownership to the public. Our goal is to create a business environment that allows each of our members to serve their customers most effectively.

We’re also focusing on membership. A surprising number of trade partners and vendors haven’t really paid attention to the value and opportunity provided by Housing First Minnesota. That’s perhaps not unusual given that they have as much business as they can handle and given the massive size of our industry.

That also provides us with a tremendous opportunity for new members, and I’d ask for your help. Please tell those businesses with which you partner about the work Housing First Minnesota is doing, and ask them to contact our membership manager, Christopher Hagness, about membership (christopher@housingfirstmn.org).

At the association, we’re doing our best to balance our time and resources— focusing on core areas while still innovating and trying some new things.

Some of our new initiatives will work, others perhaps not. But it’s important that we stay nimble and relevant to the market, even as we continue the tried and true. While the way in which we deliver value might change, one thing that we won’t ever stop doing is advocating for and representing our industry. That’s something we can only do collectively, and we thank you for your engagement and support.

JAMES JULKOWSKI 2022 HOUSING FIRST MINNESOTA PRESIDENT

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

5

SPONSORS

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Thank you to our biggest associate supporters!

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The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

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Get Ready to Golf!

O P E N

Housing First Minnesota Golf Open August 23, 2022 Majestic Oaks Golf Course | Ham Lake Two simultaneous afternoon shotguns SPONSORED BY

B U IL D

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HousingFirstMN.org/events

RETAIN YOUR BEST EMPLOYEES Offer your employees a powerful, industry-backed health insurance program at amazing rates. Housing First Minnesota members average 10-12% savings.*

September 13, 2022 The Wilds Golf Club | Prior Lake

Scan to Learn More

Contact your insurance agent to learn more about the most comprehensive and affordable group health insurance coverage in Minnesota. The Housing First Minnesota association health plan (AHP) is fully insured by Blue Cross® and Blue Shield® of Minnesota, and is managed by North Risk Partners.

8

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

*Policy pricing varies per company/individual

UP NEXT

Events UPCOMING

FIND THE ENTIRE 2022 EVENT CALENDAR & REGISTER ONLINE AT

HOUSINGFIRSTMN.ORG/EVENTS

KickStart Join us for our KickStart, an event built to help you make the most out of your membership and network with other industry peers. Meet the Housing First Minnesota membership team, and get your questions answered. Members old and new are welcome to attend.

REGISTER AT

HousingFirstMN.org/ Events

April 12 & June 7, 2022

N

EW

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EN

T!

Brews+Business: Managing Up, Down, & Sideways Take away powerful tips and tricks on managing relationships in all directions. Join speaker Jerry Olson from The Resultants as he talks leadership and management.

Mark your calendar for upcoming events on management, marketing, sales, communication, and politics. Free to attend. Open to nonmembers.

FIND DETAILS & REGISTER AT

HousingFirstMN.org/ Events

April 21, 2022 | Save the Date: June 1 & 29, July 28, & August 18, 2022

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.

DETAILS AT

FoundationGala.org

May 20, 2022

Artisan Home Tour

GET ALL THE DETAILS AT

The Artisan Home Tour is the premier showcase to the public of incredible high-end homes crafted by Housing First Minnesota members. Homes are open Fridays-Sundays from 12-6 p.m.

ArtisanHomeTour.org

June 10–26, 2022

W NE

EV

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Minnesota United FC Outing Join Housing First Minnesota at Allianz Field as the Minnesota United FC take on Kansas City. Network with industry peers while having fun (and check out the United if you haven’t already)!

Arrive at 6 p.m. for a meet-up with your industry friends at the Brew Hall. Game starts at 7 p.m.

REGISTER AT

HousingFirstMN.org/ Events

July 13, 2022

REGISTRATION OPENS MAY 2 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 23, 2022

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

9

2022 DESIGNATED GREEN PATH BUILDERS:

IS YOUR BUSINESS

A DESIGNATED GREEN PATH BUILDER? Today’s consumer is looking for leaders in energy-efficient residential home construction. The following builders have met the qualifications to be a Designated Green Path Builder including a commitment to energy test a minimum of 75% of their new single-family homes and to attend annual training on green building.

If your business qualifies, you’ll get recognition in both building industry and consumer marketing, and gain access to exclusive Designated Green Path Builder program benefits.

Learn more at MNGreenPath.org.

MN GREEN PATH IS SPON S ORE D B Y

Amba Property Development, LLC Berger Built Construction Co., Inc. Brandl Anderson Homes, Inc. Christian Builders & Remodelers City Homes, LLC Country Joe Homes Custom One Homes David Weekley Homes Dingman Custom Homes Donnay Homes, Inc. D.R. Horton, Inc. - Minnesota Fieldstone Family Homes, Inc. Fitzke Construction, LLC Gonyea Custom Homes Gordon James Gorham Custom Homes, LLC GreenHalo Builds Hagstrom Builder, Inc. Hanson Builders, Inc. KEY LAND HOMES Kootenia Homes Lang Builders, Inc. LDK Builders, Inc. Lennar Mark D. Williams Custom Homes, Inc. McDonald Design | Build | Renovate Michael Lee Homes NIH Homes, LLC OneTenTen Homes, LLC Ovation Homes, LLC Paltrin, LLC Parent Builders, Inc. Pulte Homes of Minnesota, LLC Radiant Design Build Robert Thomas Homes, Inc. Ron Clark Construction RT Urban Homes, Inc. Style & Structure Sustainable 9 Design + Build TC Homes, Inc. TJB Homes, Inc. Zawadski Homes, Inc. Ziegler Custom Homes, Inc.

AS OF M A RC H 24, 2 02 2

UP NEXT

Need to Know Fall Parade of Homes & Remodelers Showcase Marketing your homes is easy and efficient in the Fall Parade of Homes and Remodelers Showcase. Consumers love the hassle-free shopping and you will generate sales and leads. It’s simply the industry’s best marketing event.

Entries open mid-May. Parade of Homes: September 10-October 2, 2022 Remodelers Showcase: September 30-October 2, 2022 Fall Entries Close: July 8, 2022 ENTER AT

HousingFirstMN.org

Fall Awards Deadlines Your hard work deserves recognition!

Get it by entering Housing First Minnesota’s award program. Our awards recognize excellence in several areas from quality and value of construction to business ethics. Enter so we can celebrate the fine work you do!

“Best class and presentation yet.

The instructor took an intimidating subject and put it into simple language with great analogies and examples.

Full of good advice!”

ROMA Entry Due: June 10 Fall Reggie Entry Due: July 8 Builder, Remodeler, Associate of the Year Entry Due: July 8

— CONTRACTOR U STUDENT

Rising Star Nominations Due: July 8

Online Contractor University Classes

Bennie Entry Due: July 22 Fall Trillium Entry Opens: July 25

Earn your continuing education credits through Contractor University’s online/ on-demand courses. With more than 30 courses available, you’ll find specialized classes that provide useful and practical knowledge to apply to your business.

Robert L. Hanson Lifetime Achievement Award Nominations Due: July 29 Rising Star Materials Due: Aug. 5 Builder, Remodeler, Associate of the Year Evaluations Close: Aug. 5

ONLINE COURSES ARE AVAILABLE AT

Fall Trillium Entry Due: Aug. 26

ContractorU.com

DETAILS AT

HousingFirstMN.org/Awards

Custom One Homes, Inc.

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APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

11

SOLID COVERAGE

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Parade of Homes First-Time Homebuyer $10K Giveaway This spring, we launched the Parade of Homes First-Time Homebuyer $10K Giveaway to help more Minnesotans achieve their dream of homeownership by directly helping buyers with that critical down payment. We have a vision at Housing First Minnesota that all who wish to own a home in our state should have the opportunity to do so. We’re committed to providing the opportunity for homeownership for everyone, everywhere in our state.

We ask you to join the movement to grow homeownership opportunities.

Interested in helping?

You can make a difference in the lives of these everyday Minnesotans and help the industry tell policymakers about barriers to building marketrate housing by contributing one or more down payments. Each commitment of $11,500 will result in a down payment of $10,000 to a firsttime homebuyer.

TO LEARN MORE, CONTACT

Janice Meyer Janice@HousingFirstMN.org

12

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

Our advertising and sponsorship opportunities enhance your ability to communicate your products and services to other members and engaged consumers. Your participation as a advertiser and sponsor is a great win-win opportunity: you gain exposure to your key markets and Housing First Minnesota can continue offering high-quality programs to members, outreach to the community, and advocacy to create a healthy and vital industry.

CONTACT OUR SALES TEAM FOR DETAILS

Kori Meewes Kori@HousingFirstMN.org Brad Meewes Brad@HousingFirstMN.org

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APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

13

ADVOCACY IN ACTION

Growing Homeownership Opportunities Housing in the Minneapolis-St. Paul region is currently experiencing the lowest inventory of for-sale homes in record history, making the Twin Cities the worst in the nation for regional inventory. On top of this, additional challenges remain with supply chain constraints and inflation levels not seen in nearly four decades.

The good news is that demand remains incredibly strong—Minnesotans want to own homes.

Housing First Minnesota delivered this message to the legislature as it convened for the 2022 session in late January. The reception to increasing homeownership opportunities has been remarkably strong, but how we get there is more complex.

Solving this issue has been the focus of many committees and task forces at Housing First Minnesota. The consensus of this work is that there are too many roadblocks that currently limit housing supply in this market. Some of them, like supply chain issues, are outside of the legislature’s reach. But others, like restrictive zoning, housing approval

by PUD loophole, and overcharging of fees—on everything from parks to trees to permits—fit squarely into the legislature’s oversight role.

To that end, there is a legislative initiative winding through the process that aims to lift these roadblocks titled “Legalizing Affordable Housing Act.” The goal is to modernize how we bring housing projects online and to return a healthier balance of choices for the homeowners of our state. We’ve been pleased to see a growing coalition of supporters for this effort, this truly is a pressing issue for all of Minnesota.

This legislation also helps focus the challenges our industry faces daily. While we advocate to modernize housing, we are also working daily to fend off fee increases and the emergence of new regulatory roadblocks. Success on this issue helps all in the homebuilding and remodeling industry—more homeownership opportunities means more opportunity to serve your customers and grow your businesses.

Onward,

JAMES VAGLE VICE PRESIDENT OF ADVOCACY, HOUSING FIRST MINNESOTA

The institutional barriers to the construction of affordable housing which are embedded in municipal zoning ordinances are recognized as nationwide issues, however, there are peculiarities in Minnesota zoning and property tax laws that pose unique challenges. These laws have not been scrutinized by the legislature for over 25 years, and it’s time for reform.”

REP. STEVE ELKINS D–BLOOMINGTON

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The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

Follow @HFMNAdvocacy for frequent legislative updates.

L E G I S L AT I V E U P D AT E

Local Government Division Begins Discussion on “Legalizing Affordable Housing Act” Following months of conversation on exclusionary housing practices in the Twin Cities, Rep. Steve Elkins (DFL, Bloomington) officially introduced a first-of-its-kind “Legalizing Affordable Housing Act,” HF3256, in February.

•

Require every new home to be faced with upgraded exteriors

•

Require that excessive amounts of land be set aside as open space without compensation to the property owner

“The institutional barriers to the construction of affordable housing which are embedded in municipal zoning ordinances are recognized as nationwide issues, however, there are peculiarities in Minnesota zoning and property tax laws that pose unique challenges,” said Elkins when describing his bill. “These laws have not been scrutinized by the legislature for over 25 years, and it’s time for reform.”

•

Require that excessive amounts of land be that set aside for wider-thannecessary roads

Elkins went on to describe the abuses that his bill is designed to address, including zoning provisions which: •

Require large minimum lot sizes which limits many home types

•

Require large minimum home sizes

•

Require every new home to have a three-car garage

•

Prohibit market flexibility for duplexes or granny flats

•

Allow NIMBYs to block the construction of multifamily housing—even new senior housing and even when the city’s own comprehensive plan allows it

The extensive bill calls for many positive changes in planning and zoning at the local level, limits on aesthetic mandates, caps dedication fees, makes changes to building permit structures and reporting, adjusts the disclosure of energy code paybacks, and also authorizes impact fees and street improvement districts.

For years, the Housing First Minnesota advocacy team has been working with legislators from both parties and all four caucuses to address the ever-rising costs of land and municipal fees. This bill has sparked deep discussions at the Capitol and a renewed push to address housing issues in the 2022 legislative session.

The legislation had its first hearing in the Housing Local Government Division on Feb. 25 where committee members heard from nearly a dozen testifiers including Paul Heuer, the director of land planning & entitlement at Pulte Homes and a member of the Advocacy Committee, and Peter Coyle, counsel for Housing First Minnesota.

“I’ve worked for both cities and homebuilders. We are seeing a lot of strong demand for first-time homebuyers, and we are having a difficult time satisfying their demands,” said Heuer citing his lengthy experience from both sides. “The decreasing affordability in the Twin Cities can be tied to accumulating regulations in the housing industry.”

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

15

ADVOCACY IN ACTION

Housing Day at the Capitol Finds Bipartisan Support for Housing Solutions Housing First Minnesota once again joined forces with the Minnesota Realtors® to host the annual Housing Day at the Capitol, attended by almost 200 builders, remodelers, trade partners, and Realtors. With physical access still limited at the Capitol, members instead went to the Intercontinental Hotel in St. Paul to hear from legislative leaders from all four caucuses in a panel hosted by Blois Olson of Fluence Media.

Along with the legislative panel and overview of issues, attendees and members were encouraged to contact their legislators by email or phone to share support for housing initiatives that address affordability and availability of homes.

Following the event, advocacy teams and leadership from both the Minnesota Realtors and Housing First Minnesota met at the Capitol with all four caucus leaders to share the concerns and insight from the housing industry.

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The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

Thank Thank You You for for Participating Participating Thank you to the 227 builders who participated Thank you to the 227 builders participated in the CenterPoint Energy Highwho Efficiency Homes® in the CenterPoint Energy High Efficiency program in conjunction with Xcel Energy. Homes® program in conjunction with Xcel Energy.

Together, we supported the construction of 4,690 Together, we supported the construction of 4,690 energy-efficient new homes and the program energy-efficient homes and the program collectively savednew 198,719 dekatherms and about collectively 198,719 and about 5.25 million saved kilowatts.

Thisdekatherms is the equivalent 5.25 million kilowatts.

Thispassenger is the equivalent of powering nearly 3,096 cars for an of powering entire year! nearly 3,096 passenger cars for an entire year!

For more information about this program or to For moreainformation about thisplease program or to become participating builder, contact become a participating builder, please Dominique Boczek at 612-253-9976 or contact Dominique Boczek at 612-253-9976 or Dominique.Boczek@icf.com.

Dominique.Boczek@icf.com.

©2022 CenterPoint Energy 220218-01 ©2022 CenterPoint Energy 220218-01

The Housing First Minnesota members The Housing First Minnesota members honored as top performing 2021 program honored as top performing 2021 program participants include: participants include: • Stinson Builders • Stinson HedbergBuilders Homes Hedberg Homes • Lennar • Lennar

CenterPointEnergy.com/HEH CenterPointEnergy.com/HEH

Builders TOP 25

OF 2021 ATTACHED HOUSING

(2021)

SINGLEFAMILY UNITS (2021)

TOTAL UNITS

COMPANY NAME

GROSS REVENUE

Lennar

$763,792,906

1,601

1,254

347

M/I Homes

$386,426,753

816

651

165

D.R. Horton, Inc. - Minnesota

$352,125,272

800

755

45

Pulte Homes of Minnesota, LLC

$288,930,619

602

391

211

Capstone Homes, Inc.

$173,079,252

366

366

0

Hanson Builders, Inc.

$172,350,485

241

241

0

Robert Thomas Homes, Inc.

$140,512,913

205

205

0

Creative Homes, Inc.

$131,886,856

250

209

41

Gonyea Homes, Inc.

$122,867,338

109

109

0

Eternity Homes, LLC

$92,692,234

135

135

0

Brandl Anderson Homes, Inc.

$59,145,170

127

99

28

Charles Cudd Co., LLC

$57,671,507

51

51

0

JP Brooks Builders

$55,930,811

161

152

9

KEY LAND HOMES

$52,171,023

97

97

0

David Weekley Homes

$48,822,154

94

94

0

OneTenTen Homes, LLC

$45,658,923

78

78

0

Michael Lee Homes

$44,196,467

71

71

0

Derrick Custom Homes, LLC

$42,962,918

90

45

45

Distinctive Design Build, LLC

$41,017,354

78

75

3

Price Custom Homes

$38,016,697

74

62

12

Youngfield Homes, Inc.

$36,830,331

65

65

0

S W Wold Construction, Inc.

$35,805,448

84

84

0

Sharper Homes, Inc.

$34,062,000

50

50

0

Progressive Builders, Inc.

$31,169,739

101

101

0

Benzinger Homes

$29,989,607

64

64

0

*DBA Pulte Homes and Del Webb

*Includes Jonathan Homes of Minnesota

*Includes Gonyea Custom Homes and Stonegate Builders

*Includes Kootenia Homes

*DBA Country Joe Homes

*Includes Roof Doctor, Inc.

(2021)

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.

18

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

INDUSTRY D ATA

The region’s top-ranked builder in 2021 is Lennar – Minneapolis/St. Paul, shown from the results of a recent builder survey by Housing First Minnesota. Lennar has held the top spot since 2006. Rankings are based on annual gross revenue as reported by respondents for for-sale housing.

Together the top 25 builders accounted for $3.2 billion in gross revenue and 6,410 housing units in 2021. Of those housing units, 5,504 were single-family homes and 906 were townhomes or multifamily units.

Lennar reported gross revenue at $763,792,906 for 1,254 single-family homes and 347 multifamily homes closed in the 2021 calendar year for a total of 1,601 total units.

“At Lennar, we have listened to our buyers tell us how important their home is to their families. We are truly honored that they trusted us to build their dream home and create the neighborhoods where they are proud to raise their families,” said Bill Burgess, Lennar’s division president.

“We thank all of these families for making Lennar the number one homebuilder in the Twin Cities for the past 16 years.”

At Lennar, we have listened to our buyers tell us how important their home is to their families. We are truly honored that they trusted us to build their dream home and create the neighborhoods where they are proud to raise their families.

We thank all of these families for making Lennar the number one homebuilder in the Twin Cities for the past 16 years.”

In addition to Lennar, the top 10 homebuilders were M/I Homes with over $386 million in revenue and 816 housing units closed; D.R. Horton, Inc. with over $352 million in revenue and 800 housing units closed; followed

by Pulte Homes of Minnesota with revenue of over $288 million and 602 units; Capstone Homes with over $173 million and 366 units; Hanson Builders, Inc. with over $172 million and 241 units; Robert Thomas Homes, Inc. with over $140 million and 205 units; Creative Homes, Inc. with over $131 million and 250 units closed; and Gonyea Homes, Inc. with over $122 million and 109 units.

BILL BURGESS DIVISION PRESIDENT, LENNAR

Lennar | Spring Parade of Homes #220

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

19

INDUSTRY D ATA

want more Market data?

SEE THE LATEST HOT SHEET AT BLOG.HOUSINGFIRSTMN.ORG SPONSORED BY

Introducing the Minnesota Housing Dashboard Housing First Minnesota has launched the Minnesota Housing Dashboard, which provides an easy-to-read snapshot of Minnesota’s housing market and the shortage of homes available.

The latest version of the Minnesota Housing Dashboard can be found on the Housing First Minnesota blog Blog.HousingFirstMN.org.

Using data from government and industry partners, the dashboard provides a valuable look at housing affordability, access, and inventory in Minnesota. This snapshot of housing data helps illustrate the need for more homes in Minnesota at all price points and styles.

Contact Nick@HousingFirstMN.org for more information.

DECADE OF UNDER BUILDING

DASHBOARD

MINNESOTA’S HOUSING RECORD

MINNESOTA HOUSING

Worst inventory in the nation for any major market (MSP)~ Widest housing disparities in the nation*.

Highest regional new single-family detached home cost ^

FEBRUARY 2022 EDITION

In 2018, Minnesota added more than 25,000 new housing units statewide. That same year, the state’s Housing Task Force called for 300,000 new units by 2030.

With a 50,000-unit deficit, the task force also called for a five-year surge of 10,000 new units per-year above 2018’s production levels.

Since then, with the state’s affordability issues largely unaddressed, Minnesota’s housing deficit has only grown.

FOR MORE INFORMATION, VISIT: HOUSINGFIRSTMN.ORG CONTACT:

Nick Erickson Director of Research and Regulatory Affairs Housing First Minnesota nick@housingfirstmn.org

20

The Digest

0.9 MONTHS

SUPPLY OF HOUSING Source Minnesota Realtors, Feb. .2022.

Median New Single-Family Home Price By State^

60,269

Minnesota is the costliest market for new single-family homes in the region.

MISSING HOUSING UNITS

$345,125

STATE HOUSING GOAL: 2019-2022 YEAR

UNITS BUILT

UNIT GOAL

PROGRESS

2019

25,566

35,000

-6,414

2020

28,148

35,000

-6,852

2021

38,334

35,000

+3,334

2022*

1,564

1,901

$350,000

$305,500 $369,500

-337

Source: U.S. Census Bureau Building Permit Survey. Data through Feb. 2022. *Monthly goal figure has been projected based on historical market performance. State Housing Goal is based on additional new units per year above 2018’s production levels.

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

$245,000

$452,786

` United states Census Bureau * United states Census Bureau, American Community Survey ^ Source: Zonda MetroStudy, Jan. 2022.

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We love his sunny disposition and positive attitude.

Why does he stick around? Lucas shared, “I love the fast-paced environment and the team. It’s great to work with people who always go above and beyond”.

Thank you, Lucas, for all your hard work and helping us keep things moving!

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BUSINESS TIPS

Make the Most out of Your Online Member Directory Introducing our recently launched new online member directory to connect you to members all year round. Maximize your exposure by making the most out of the many new features.

Online Directory Features SOCIAL LINKS The main contact for the company can add company social handles in the Company Information section.

Any employee can add their personal LinkedIn by logging into their profile and scrolling down to Professional Information.

COMPANY DESCRIPTION & TESTIMONIALS The main contact for the company can add a company description and testimonials by scrolling to the Membership Directory section and entering it in the Company Description text box.

CUSTOM CONTENT, BROCHURES, & VIDEOS The main contact for the company can add custom content, brochures, and video links by clicking on the gray side menu option Content & Features. Links can be added to a custom page you create.

LOGO OR PROJECT/ PRODUCT IMAGES The main contact for the company can add photos such as a logo or project/product images by clicking on My Profile in the upper left and then going to the Photos tab.

Get Connected LOG IN

ADD EMPLOYEES

STAY UPDATED

To log on to your online member profile, go to HousingFirstMN.org, click Sign In in the upper right, and log in.

If you are an employee and do not have login info, contact Kim@HousingFirstMN.org, and we’ll set you up with your own account tethered to your company.

Every profile will receive all digital communications from Housing First Minnesota and be able to register for member events.

PROFILE IMAGE Any employee can add a company profile picture. Click on My Profile in the upper left. On the left column will be the company name—hover over the image above your company name to edit. Browse your computer and add the photo. Tip: The main contact may want to use a company logo for the profile image.

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

23

BUSINESS TIPS

Start Engaging POST ON MY FEED

CONFIGURE ANNOUNCEMENTS

This can be done by logging into your profile and clicking the My Feed in the upper left.

Like and comment on other posts!

Get alerts from the areas that interest you most. Click on the side menu option Information & Settings and then click on the tab Preferences.

Tip: If you are the main contact for your company, the post will appear from your company name. If employees post, the post will display from their personal account.

24

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

STRENGTHEN HOUSING FIRST MINNESOTA—REFER A FRIEND Refer a new member to Housing First Minnesota! Click on the side menu option Information & Settings and then click on the tab Referrals. Draft an email to your nonmember peers and send. You may even win the Building Housing First Minnesota Award if you refer the most new members!

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Ravasy 24" Wine Column

Social Studies Twin Cities housing professionals share five tips for boosting your business through social media.

by Taylor Hugo

Between Reels and Stories, hashtags and captions, keeping up with ever-changing social media platforms, trends, and algorithms can be dizzying—but having a presence on the sites is critical to building brand awareness, connecting with potential clients, and even creating additional revenue streams through ads and affiliate links. Here, three Twin Cities housing professionals (and Housing First Minnesota members) share their top tips for boosting business through social media in a way that’s meaningful and authentic.

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The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

BUSINESS TIPS

1

It’s all about time and consistency.

Don’t get discouraged by a lack of followers or low engagement in the beginning. “It takes a while for people to find you, follow you, engage with you, earn trust in you, and create some loyalty around your brand,” says Katie Kath, who runs Jkath Design Build + Reinvent with her husband, Jesse.

“The biggest rules of thumb are finding the time and staying consistent. If you’re not currently using social media at all, start with three days a week.

If you’re already posting three days a week, bump it up to five days,” she adds, noting that 90% of their business now comes through Instagram.

Follow the Experts Morgan Molitor construction2style construction2style.com @construction2style 69K followers @construction2style 8.9M monthly views @c2s_molitor 6.5K followers @construction2style

2

Know your audience.

Understanding when to post is key since the goal is to get your content in front of as many eyeballs as possible. “When is your audience on? Instagram will give you those statistics if you have a business account,” says Kath. “Most people check their phones first thing in the morning and at the end of their workday.”

Translation: 10 a.m. on a Monday, when many people are working, is likely not the optimum time to post.

You should also be aware of where your followers are and the type of content they want to see. For Kath, that means imagery of finished spaces on Instagram, while Morgan Molitor, who started

construction2style with her husband, Jamie, focuses on Pinterest and Google Stories to drive traffic back to their website.

For Mark Williams of Mark D. Williams Custom Homes, “Instagram Reels are by far the best,” and he tries to create video content daily during special events like the Parade of Homes or Artisan Home Tour to attract visitors to their new builds and remodels.

“We’ll do a video showing cool features or we’ll film people as they’re walking through the front door.

Followers will respond to a nice picture, but they are more interested in people, anything they can draw a connection to.”

Katie Kath Jkath Design Build+ Reinvent jkath.com @jkath_designbuild 36.7K followers @jkathdesign 2.2M monthly views @jkathdesignbuild

Mark D. Williams Mark. D. Williams Custom Homes, Inc. mdwilliamshomes.com @markdwilliams_ customhomes 5K followers @MarkDWilliams CustomHomesInc

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

27

BUSINESS TIPS

3

4

28

Learn from others.

When it comes to social media for business, Molitor is self-taught. In addition to a lot of trialand-error to discover what works best for construction2style, she also routinely listens to podcasts for continuing education, such as Brad Leavitt’s AFT Construction Podcast, Food Blogger Pro, Stand to Serve by Emily Costopoulos, and Why Not Now? with Amy Jo

The Digest

Martin. “I’m constantly learning through other colleagues or partners, and if someone I respect or admire is testing something out, I jump on board right away to see if it works for us,” says Molitor. “I like very simple and straightforward tools. I usually spend a month on new things, and if it’s working, I keep doing it.

If not, I jump ship.”

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

5

Utilize the right tools for your business.

Having a robust presence online doesn’t mean you need to be glued to your phone, churning out content 24/7. Many who have mastered the social media game (and demanding algorithms) rely on tools like Tailwind, Buffer, Sprout, Hootsuite, and Later to schedule posts in advance, monitor

when their audience is online, and make it simple to engage with and respond to comments from followers. “Obviously, learning the tools takes a little bit more time, but once you know them, they’re pretty selfexplanatory,” says Molitor, and now, “I only time-block four hours a week to focus on social media.”

Most importantly, have fun with it.

No matter your preferred platform, the content you create should be fun and engaging— otherwise, why bother? “If I didn’t enjoy it, I wouldn’t do it,” says Williams, who has garnered a following thanks to lighthearted captions, behindthe-scenes jobsite clips, and “thank you

Thursday” shoutouts that express gratitude for his team members. “You want to connect with people so they think, ‘Oh, they seem like fun. They work with good people and they do good work. I’d like to see what they do in the future.’ That’s pretty much the goal.”

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Q+A

Have questions you’d like to ask an expert?

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

Ask the

Charitable Arm with Kate Hamilton, 2022 Housing First Minnesota Foundation President

Q.

What are the impacts of our Foundation’s build projects in the community?

Homelessness has a ripple effect throughout the community. It impacts the availability of healthcare resources, crime and safety, the workforce, and the use of tax dollars.

Further, homelessness impacts the present as well as the future. When we enter a community and build a home for a service provider addressing transitional homelessness, we find that we not only positively impact those that move into the home, but also the broader community. We engage with municipalities, community organizations, and neighbors. We are given a platform to create more

awareness for the service organization we partner with and educate the community on not only who the Housing First Minnesota Foundation is, but the stigma that surrounds homelessness.

Not only does the work of the Foundation positively impact the lives of those who are provided our transitional housing, it also helps cast a positive aura over our association and industry.

Q. Why is it important for Housing First Minnesota members to get involved with the Foundation?

Member involvement is key to any nonprofit’s success! One of my main goals this year is to encourage the

membership to make a difference. I want to encourage our members to give back and to inspire this group to be more involved or take on leadership roles. To the builders and remodelers, please consider the opportunity to become a build partner on our projects.

To the associate members, please consider donating products or providing product discounts for our build projects.

We can do so much more if we do it together!

For those who are already leaders, please reach out and encourage and mentor those who have a passion to move forward. No matter who you are or where you’re from, you have the power to do something that improves the lives of those in need!

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

31

Q+A

Q. What’s ahead for the Foundation?

Our biggest investment of community builds in one year is currently underway.

Four Housing for Heroes homes accompanied by four accessory dwelling units (ADUs) are in the works—delivering impactful results and providing 20 more beds. Since our first Housing for Heroes project in 2017, our Foundation, along with build partner Lennar and the Minnesota Assistance Council for Veterans (MACV), will have a total of nearly 50 beds for homeless veterans transitioning to a more stable living environment.

With the support of the membership and community, the Housing First Minnesota Foundation will continue its work to build tangible housing solutions for individuals and families in need of a safe place to call home. Our supporters have the satisfaction of knowing that their donation builds real brick-and-mortar housing solutions for veterans and others who are without a home.

Additionally, we are pursuing new service organizations to add to our portfolio of groups with which we work. Stay tuned for updates on this exciting new piece!

Q. How can you support the Foundation?

There are endless opportunities to support the Foundation! Become a build partner and help us build safe homes for those in need or donate products and services to a build project. Consider joining a committee or our board of directors and support the Foundation with your time and expertise.

We warmly invite you all to register for our 2022 Fundraising Gala, which will be held on May 20 at the Omni Viking Lakes Hotel. Support the event by sponsoring, attending, or both!

No matter how you choose to support, know that it is going to a good cause, a good mission, and a goal to build safe housing for those in need!

32

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

F I R ST - T I M E H O M E B U Y E R

$10K

Giveaway

The Parade of Homes has a proud legacy of providing homeownership opportunities in Minnesota. In our continued commitment to expanding the opportunity for homeownership for everyone, everywhere in our state, we’re pleased to launch the Parade of Homes First-Time Homebuyer $10K Giveaway!

Interested in helping? You can make a difference in the lives of Minnesotans by contributing a down payment. To learn more, contact Janice Mayer at Janice@HousingFirstMN.org.

THANK YOU TO THE FOLLOWING DONORS FOR MAKING THIS POSSIBLE

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

33

G A L A

JOIN US FOR A NIGHT OF GIVING You’re invited to 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 veterans and Minnesotans experiencing homelessness.

This is our opportunity to give back and help rebuild lives.

Together, we can make a difference.

FOUNDATIONGALA.ORG

FRIDAY, MAY 20, 2022  5:30 - 11:00 PM  OMNI VIKING LAKES HOTEL, EAGAN, MN Hollywood premiere-themed attire encouraged

AT TEND

THANK YOU PRESENTING CO-SPONSORS

SPONSOR

DONATE

BUILDING FUTURES

Small but Mighty Solution for Unhoused Minnesota Veterans The Housing First Minnesota Foundation is making excellent progress on two new Housing for Heroes homes in North Minneapolis, including one with an accessory dwelling unit (ADU). The homes are being constructed by Lennar and will be managed by the Minnesota Assistance Council for Veterans (MACV). These four-bedroom homes will house veterans in transition who are experiencing homelessness, providing them a pathway to greater stability.

These two homes are the sixth and seventh homes our Foundation has constructed for MACV with build partner Lennar. The ADU will add another bedroom that provides even more flexibility for MACV to meet the needs of veterans. This is the first ADU build for the Housing for Heroes program, and we anticipate future Housing for Heroes projects will include ADUs.

Impact The previous five Housing for Heroes homes have served 22 veterans and their family members experiencing homelessness. Slated to finish in May, the addition of these two homes will allow MACV to serve 31 recipients at any given time. The average time a veteran stays in a transitional home is 5.4 months.

7

TOTAL HOUSING FOR HEROES HOMES

31

VETERAN RECIPIENTS SERVED AT ANY ONE TIME

5.4

MONTHS AVER AGE TIME OF VETER AN STAY

Project Moonshot We are doubling our project budget for community builds this year as we take our moonshot.

Our Foundation will build four Housing for Heroes homes accompanied by four ADUs—a massive undertaking. This means we will add 20 more beds for unhoused veterans to the 31 that we’ve already constructed, bringing our total to more than 50 beds. Minnesota currently has 241 veterans on the homeless veteran registry.

Help make a difference in the fight to end veteran homelessness in Minnesota.

We are raising funds for the moonshot project. If you would like to donate to the project or sponsor an ADU, please visit HousingFirstMNFoundation.org or contact Erin Milburn at Erin@HousingFirstMN.org.

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

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35

The

Welcome Wagon Housing First Minnesota’s Ambassador Committee is charged with recruiting new members and retaining current ones by ensuring building professionals take advantage of all their membership has to offer.

by Taylor Hugo

With a mission of helping members build their businesses through marketing, advocacy, and industry connections, Housing First Minnesota is constantly striving to expand its network of local professionals who are passionate about the industry.

“The focus of membership is to recruit new members and retain those members,” says Nicole Coon, Housing First Minnesota’s vice president of membership and events.

“We want to make sure they’re getting the most value for their membership and getting engaged in a way that makes sense for their business.”

Whether that’s attending events to network and make B2B connections, taking advantage of marketing opportunities like the Parade of 36

The Digest

Homes and Artisan Home Tour, or being an advocate for the housing industry at local and state government levels, it’s important these new members have someone to support them as they learn the ropes of the association.

Enter: Housing First Minnesota’s Ambassador Committee, a group of volunteers that focuses its energy on recruiting new members and engaging current ones by ensuring they understand the association’s core purpose—advancing the American dream of homeownership for Minnesotans—and the breadth of benefits offered to help their business succeed. Call them a “welcome committee.”

“Any time a new member joins, one of the committee members will become

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

their ambassador, if you will. They’ll call them a couple times a year to check in on them, let them know about upcoming events or deadlines they may not know as a new member, and just be a familiar face,” says Coon of the 11 members currently serving on the Ambassador Committee.

“It’s a great testimony to have someone that’s actually leveraging the association to enhance their business, goals, and objectives share their personal story and experience with Housing First Minnesota.”

Here, get to know three of those ambassadors as they share why they are a beneficial resource for members, the value of Housing First Minnesota, and how others can get involved.

MEMBER SPOTLIGHT

Kristin Reinitz

Ambassador Committee Chair Director of Business Development & Sales, Admit One Home Systems

When Kristin Reinitz graduated from college with a degree in interior design in early 2010, she quickly realized nobody was hiring in her field at the time. Instead, Reinitz—who grew up in the housing industry, watching her dad work as a craftsman and remodeler—took on a slew of selling jobs within the building industry while looking for a community that could support her early on in her career.

“

I naturally became an ambassador because I can genuinely say to other people, ‘Hey, getting involved here worked for me. Why don’t you do it too?’

The association fits with what I believe, and I want to help promote it.”

“I got involved with Housing First Minnesota because, honestly, I didn’t know where else to go,” says Reinitz, the director of business development and sales for Admit One Home Systems, a custom home integration company specializing in audio and video. “I needed somewhere to network. I needed somewhere to start integrating myself into the community.”

Since joining the association as a member more than a decade ago, Reinitz has served on the board of directors for the Housing First Minnesota Foundation—the nonprofit arm of the organization that provides services to locals

experiencing homelessness— as well as multiple committees, including her current position as chair of the Ambassador Committee and committee representative on the board of directors.

“I naturally became an ambassador because I can genuinely say to other people, ‘Hey, getting involved here worked for me. Why don’t you do it too?’ The association fits with what I believe, and I want to help promote it,” says Reinitz, who sees this role as an opportunity to take care of members by staying in the know of everything going on at the association and being “one of your first friends within the industry.”

“I don’t want you to sign up and then not go to anything or not get involved, because then you’re going to drop your membership. You’re not going to get value,” she adds. “If I can get you to come to some events and make even a few introductions for you, it can help you start to get engaged.

Then you’re getting your money’s worth, and you see that there’s value in creating a bigger network of people.”

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

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37

Let’s connect

HousingFirstMN.org/ Ambassadors

Pat Hegseth Ambassador Committee Director of Sales, Scherer Bros. Lumber Co.

For Pat Hegseth, being involved with Housing First Minnesota is a way to give back to the industry he’s been a part of for more than four decades. His first job was in a lumber yard, picking up trash and pushing a broom in the warehouse.

Today, he’s the director of sales for Scherer Bros. Lumber Co. and a longtime member of the association.

Before joining the Ambassador Committee this past November, Hegseth has also supported initiatives like education and workforce development in his 20 years with Housing First Minnesota.

Now he enjoys engaging with prospective new members and breaking down barriers between competitors in the industry.

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HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

“It can be intimidating to come to an event where there could be hundreds of people and you don’t know anybody. As an ambassador, we seek out these people, put our arm around them, have a cup of coffee or a cocktail, and introduce them to other key members,” says Hegseth. “The reality is, we’re all here to garner new business, but what I find most valuable about being a member of Housing First Minnesota is the ability to give back, meet new people, and support the industry where we all make our living.”

His advice for others who want to get more involved in Housing First Minnesota is simple: Make the time. “Like a lot of things in life, you get out of it exactly what you put into it,” Hegseth says.

MEMBER SPOTLIGHT

Heather Griffis Ambassador Committee Project Coordinator, Custom One Homes

Ambassador Committee Kristin Reinitz, Chair Admit One Home Systems

Pat Hegseth Scherer Bros. Lumber Co.

Chuck Bulson Warners’ Stellian Appliance

Patti Mazzara Wells Fargo Home Mortgage

Dan Christenson Scherer Bros. Lumber Co.

Renee Molstad Penguin Insulation, Inc.

Melanie Dunker Minnesota Title

Randy Rheault CSP & Associates, Inc.

Heather Griffis Custom One Homes

Alana Wynne Ferguson Enterprises

Luke Hegge Cosentino Center Minneapolis

INTERESTED IN JOINING THE AMBASSADOR COMMITTEE? You’ll need to be a Housing First Minnesota member for at least one year and attend three events. For more information, contact Kristin Reinitz at Kristin@AdmitOneSystems.com or Nicole Coon at Nicole@HousingFirstMN.org.

Heather Griffis has always been able to turn tough situations into new opportunities. When the recession pushed her out of real estate in 2007, she became a receptionist for Housing First Minnesota, working her way up to membership manager.

Then, when the pandemic hit and she missed being out in the field, Griffis decided to pursue a new job as project coordinator for Custom One Homes—but she never lost her passion for the association.

“Housing First Minnesota has a place in my heart, and I will always push membership to the association,” she says.

“There is no better way to spend your dollars and get that engagement.”

Griffis previously ran the Ambassador Committee as an employee of Housing First Minnesota, so it made sense for her to continue as a volunteer committee member, where her number-one goal is to get new members to

see the value in their membership and renew the following year. “I’m passionate about being there for others,” says Griffis, who also works to get more young people and women involved in the industry. “I like to be a resource for people, I like to meet people. That’s my thing—helping people get where they need to be or meeting the right people to get there.”

Outside of the opportunities for engagement and connection, Griffis says it’s the advocacy work of Housing First Minnesota that she finds most valuable. “Housing First is fighting for housing affordability— something we are lacking in Minnesota. It’s really expensive to build a home these days, and it’s hard for first-time homebuyers to get into a home. They’re pushing to help young kids get into a home rather than rent forever,” she says. “The association’s advocacy is top notch.”

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

39

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The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

SEEN + HEARD

Media in the

From Housing Day at the Capitol to workforce development to the latest legislation–check out some of the places Housing First Minnesota and its members have been mentioned on social and in the press this past quarter.

Housing Day at the capitol

@HOUSINGFIRSTMN

Housing Data

Housing industry professionals take to the capitol in support of Minnesota’s housing industry.

Permit data released by Housing First Minnesota is featured in the Star Tribune.

2022 off to a strong start for Twin Cities homebuilders

@midwestgirl01

@housingfirstmn

Robust year for new homes

Homebuilding in the Twin Cities reached a 16-year high in 2021 @christenhcoldwellbanker

@sarahsellshousesmn

WINC Hosts Strategic Planning at Housing First Minnesota

Kate Hamilton Named Housing First Minnesota Foundation President

Women in Construction (WINC) partnered with Housing First Minnesota to host its January strategic planning session leaving with new-found energy and focus for 2022! @winc.mn

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

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SEEN + HEARD

&

Out About

@HOUSINGFIRSTMN

Project Build Explorer Post Streeter Custom Builder, Housing First Minnesota, and Project Build Minnesota hosted Explorer Post participants at a homesite in North Oaks. At the site visit, students in the program had an opportunity to learn more about the residential construction industry and related trades.

The Explorer Post program hosts monthly experiences in which the young participants explore various segments of the construction industry.

Avivo Awards Our Foundation’s build partners The Kingdom Builders, Plekkenpol Builders, Inc., and John Kraemer & Sons, Inc. were recognized for their outstanding philanthropic contributions at Avivo’s Night of Champions. Their work to remodel apartment units for Avivo’s family recovery housing program means the world to the mothers and children who move in while in recovery. Thank you for your dedication to helping our community.

42

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

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SEEN + HEARD

Housing Day at the Capitol Housing professionals gathered both in person and online in support of Minnesota’s housing industry. Attendees heard from industry leaders and legislators on key housing issues at the Capitol. Above are some of the 200 Housing Day at the Capitol attendees on the steps of the Capitol.

March 7, 2022 44

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

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APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

The Digest

45

&

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.

HAVE NEWS?

SEND YOUR ANNOUNCEMENTS TO LAURA@HOUSINGFIRSTMN.ORG

Know someone who would make a great member?

Send them our way!

Housing First Minnesota is the leading voice for builders, remodelers, and all in the housing industry who are dedicated to building safe, durable homes at a price Minnesotans can afford. Our current members are our greatest advocates. With more members, our association will have an even greater voice and presence in the community.

Do you know of any housing industry business partners who are missing out on the value and benefits Housing First Minnesota Membership brings you? We would love to connect and go over how we can help their business!

Condolences Remembering Chris Allyn Adams Condolences to the friends and family of Chris Allyn Adams, who passed away on Jan. 1. Chris loved his job building homes.

He was owner of Artic Homes and most recently, VP at L. Cramer in Edina. His family was his world and he enjoyed spending time at the cabin, traveling, and was an avid sportsman. Chris had the unique ability to make everyone feel included and welcome.

Many will miss his wonderful sense of humor, entertaining stories, and his ability to listen.

Your Building Industry Association

Current or potential members can contact our membership manager,

Christopher Hagness 715-340-5610 Christopher@HousingFirstMN.org

Awards Creative Homes Wins National Housing Quality Award Congratulations to Creative Homes for being honored with the National Housing Quality Award (NHQA) from PROBUILDER. The NHQA recognizes homebuilding companies striving to reach new heights in their operations, the quality of their product, and customer satisfaction.

46

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

SEEN + HEARD

New members DECEMBER 2021–FEBRUARY 2022 Atwell Perry Ryan

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August Ventures Joseph Sullivan

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Aurora Engineering, LLC Tom Weber

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Davey Resource Group, Inc.

Nathan Landucci

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Fieldstone Real Estate Specialists

Max Land Value

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RowCal Management

Minnesota Property Group

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Kerry Hage

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Chris Jessen

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landuccihomes.com | 651-894-2582 John Raiche

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Hage Homes

Hannah Webster

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Landucci Homes, Inc.

Tracy Hains

CrossCountry Mortgage, LLC

Dian Mullis

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Che Bella Interiors, LLC

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Pro Concrete Countertops

Amy Kemmerer

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Gail Nozal

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The District Edina Gregory Rich

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Water Street Homes, LLC

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ORIJIN STONE Nicole Richards

612-850-4002

Integrity Remodeling & Design Group, LLC Ray Topalof

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West Luxe Design and Build Ashton Harrell

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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.

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You will save money, sleep better knowing your business and industry are protected from

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.

government regulations, make unparalleled connections that help your business grow and feel great about being part of a cause that helps Minnesota.

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.

Your Building Industry Association

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

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

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48

The Digest

HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

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.

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Luke Bell MIDWEST MANAGER OF GOVERNMENT AFFAIRS FOR ZILLOW

The Challenges of Affordability DAVID SIEGEL EXECUTIVE DIRECTOR, HOUSING FIRST MINNESOTA

The issues surrounding the lack of market-rate affordable housing received more than an hour of close attention in a late February hearing before the Minnesota House of Representatives Local Government Committee. The attention this issue is receiving is in large part due to our efforts as an association. We have been steadily hammering on the challenges of affordability for more than a decade and we are finally seeing policymakers take note.

I thought what I would do in my column this issue is share some key quotes from testifiers at that hearing.

I hope that you can use these facts to add your voice to the call for policy change to allow our industry to meet the market demand for a more affordable market-rate product. I’ll indicate who the testifier is and share some of their key points.

•

2021 was a year of unprecedented housing demand coupled with historic inventory shortages, which drove up prices.

•

Home values in the Minneapolis-St. Paul region appreciated by 43% in the last five years, 12% in the last year alone.

•

In the Minneapolis-St. Paul region, the Black homeownership rate is just 26% compared to the white homeownership rate of 76%. This is the lowest Black homeownership rate in the entire nation of the 59 major metropolitan areas studied for the research. It is also the largest gap in the nation between the Black homeownership rate and the white homeownership rate.

•

According to research by Zillow, reforming residential zoning rules, even modestly, to allow for more housing construction and more density would be the most effective way to increase housing supply and increase affordability.

•

We estimate that the Minneapolis-St. Paul region will only add 380,000 units over the next two decades under the current system. The Metropolitan Council projects that the area’s population will grow by 560,000 in that same period.

•

If we don’t build more housing, not only will we not chip away at the current lack of housing, but we also won’t keep up with population growth needs.

Salim Furth MERCATUS CENTER AT GEORGE MASON UNIVERSITY

•

The exercise of local land use authority relies on institutions designed by the state. Thus, the state legislature has the responsibility of adjusting institutions that are working poorly for citizens, markets, or local governments.

•

Mounting evidence suggests that the institutions of development in suburban Minnesota are broken.

•

An increasing number of suburbs are abandoning traditional zoning in favor of an overreliance on Planned Unit Developments (PUDs). PUDs are an invitation to opaque policymaking and favoritism.

In addition, the creation of a PUD agreement involves upfront administrative costs, making it uneconomical for small-scale builders. When PUDs are used for routine subdivisions, I take that as a warning sign that some aspect of the development process is not working as it should.

•

Localities use uneconomical zoning to force builders into PUD negotiations. In addition, Minnesota suburbs, like many municipalities nationwide, use zoning to curate which types of people can move to town.

APRIL–JUNE 2022 | HOUSING FIRST MINNESOTA

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Libby Starling DIRECTOR OF THE COMMUNITY DEVELOPMENT AND ENGAGEMENT DEPARTMENT AT THE FEDERAL RESERVE BANK OF MINNEAPOLIS

•

Last year, a mere 4.6% of all for-sale and rental housing in the metro was vacant. This is the lowest vacancy rate of the 56 largest metropolitan areas in the country. The data backs up the sense that housing is in short supply. This is the result of a decade-long production deficit where new housing starts—both rental and owner-occupied—have not kept up with housing demand.

•

A rough calculation is that we’re behind by about 80,000 missing units (for-sale and for-rent) that were not built over the last 15 years to keep up with housing demand. With fewer units being added to the market, we see the increased competition on existing units as we simply don’t have enough to keep up with demand.

•

Back in 1950, nearly half of all Black households in the state were homeowners. Now it sits at just over 25%.

Danielle Leach VICE PRESIDENT OF CONSULTING FOR ZONDA

•

All types of housing are extremely tight in the Twin Cities in terms of inventory. Resale inventory is at 0.6 months of supply. A health market would be between four and five months of housing supply.

•

The median resale price is up 8.5% year-over-year.

•

Production of townhome units is up 60% year-over-year as builders try to provide a more attainable product in the marketplace, although it’s still expensive.

•

The $500,000 to $750,000 price range has had 124% yearover-year growth in starts activity. Under $350,000 there is very little product and starts are declining.

•

Vacant developed lots are at 14 months of supply, and 20 to 24 months of supply would be considered healthy. There are not enough vacant developed lots in the marketplace.

David Arbit DIRECTOR OF RESEARCH, MINNEAPOLIS AREA REALTORS®

•

The price of an acre in the 7-county metro area has reached a peak of almost $200,000 as compared to about $100,000 just a decade ago. That’s $50,000 for a quarter acre.

•

Last year, prices rose in the metro about 11.5%. Newly built homes are averaging about $450,000. Resale homes are at about $330,000.

•

We are so dramatically undersupplied. We have two or three weeks of supply, and we need four or five months of supply. The under $300,000 is tighter than the over $300,000 market.

David Werschay WERSCHAY HOMES

•

A huge part of our costs in homebuilding is the fees and regulatory burden.

•

We once had 30,000 homes for sale in our market. We ended last month with 4,300.

•

Within general guidelines, let the homebuyer and the builder decide what they want and can afford.

•

In the under $350,000 market, we are not seeing new supply coming on.

The alignment in the testimony of all groups speaks to the depth of the challenge, but also confirms much of what Housing First Minnesota and our members have been reporting for some time. This issue is central to our industry, your business, and homeownership opportunity in the future. It is also becoming a mainstream concern from those who are concerned about the livability and competitiveness of Minnesota.

Look for member engagement opportunities on this important issue throughout 2022.

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HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

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APRIL–JUNE 2021 | HOUSING FIRST MINNESOTA

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HOUSING FIRST MINNESOTA | APRIL–JUNE 2022

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