The Digest | Jul-Sep 2020

Digest T H E

JU LY–S EPTEM BER 2020

Playhouses for Good Spreading joy to nonprofits throughout the Twin Cities

BUSINESS TIPS

SCHOLARSHIP RECIPIENTS

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Contents JU LY – SEP TEM B E R 2 0 2 0 HOUSING FIRST

7

From the President

President Gary Kraemer examines the value of membership

UP NEXT

10 Events

See what’s coming for industry events

12 Need to Know

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

IN THE INDUSTRY

15 Advocacy in Action

Your advocacy team’s work during the legislative session

18 Industry Data

27

Dig into the state of the construction industry in Minnesota

28

BUSINESS TIPS

20 Leading in Crisis

Tips for calming the chaos through leadership

23 Cybersecurity

Staying diligent through the pandemic

27 Adaptability Builds Resilience

Uncertainty and challenges lead to industry innovation

30 Parade of Homes & the Millennial Generation

The University of St. Thomas conducts research on millennials and their relationship to homebuying

32 Q&A: Ask the Safety Expert

Answers to common COVID-19 safety questions

32 JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

The Digest

3

Digest T H E

Board of Directors EXECUTIVE BOARD PRESIDENT GARY KRAEMER, John Kraemer & Sons, Inc. VICE PRESIDENT TODD POLIFKA, Custom One Homes TREASURER JAMES JULKOWSKI, Julkowski, Inc. ASSOCIATE VICE PRESIDENT ED ENGELBRECHT, Pella Windows & Doors SECRETARY RYAN RUTZICK, All, Inc. IMMEDIATE PAST PRESIDENT JOHN RASK, M/I Homes PAST ASSOCIATE VICE PRESIDENT CARLA WARNER, Warners’ Stellian Appliance BOARD + COMMITTEE CHAIRS ADVOCACY CHAIR BILL BURGESS, Lennar AMBASSADOR CHAIR DALE LOEFFLER, Marvin ARTISAN HOME TOUR CHAIR JOHN KRAEMER, John Kraemer & Sons, Inc. LARGE VOLUME BUILDERS COMMITTEE JAMES SLAIKEU, D.R. Horton, Inc. - Minnesota

ON THE COVER: AVIVO RECEIVES A PLAYHOUSE BUILT BY STUDENTS AT THE BRS SKILLS DEMO

PARADE OF HOMES CHAIR SARAH DULONG, Ron Clark Construction PAST PRESIDENTS’ ADVISORY COUNCIL CURT CHRISTENSEN, Lee Lyn Construction, LLC REMODELERS CHAIR JASON MYRLIE, J Carsten Remodeling SMALL VOLUME BUILDERS CHAIR ART PRATT, Pratt Homes MEMBER AT-LARGE JIM FUSCHETTO, Lyman Lumber Co. MEMBER AT-LARGE JOHN QUINLIVAN, Gordon James Construction, Inc.

Staff BUILDING FUTURES

34 Partnering to Provide Life-Changing Housing

An Avivo resident and her daughter receive support and housing to thrive

EXECUTIVE LEADERSHIP EXECUTIVE DIRECTOR DAVID SIEGEL CREATIVE SERVICES VICE PRESIDENT OF MARKETING & CREATIVE DAWNITA PARMELY CREATIVE DIRECTOR HANNAH SWAN EDITOR & SOCIAL MEDIA MANAGER LAURA BURT

36 Playhouses for Good

Playhouse donations spread joy to nonprofits throughout the Twin Cities

39 The Next Generation of Our Industry Meet 16 deserving scholarship recipients working toward a career in construction

ADVERTISING & SPONSORSHIP FULFILLMENT COORDINATOR LAURIE SPARTZ CREATIVE SERVICES & TECH COORDINATOR CASEY SCOZZARI 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 SPECIALIST KRISTEN OBER ADVOCACY COORDINATOR KATE WIGLEY

MEMBERS O N LY

44 Member Spotlight: Spring Award Winners Congratulations to our latest award recipients

51 In the Media 54 Member News & Announcements 55 Elite Sponsors 56 Member Discounts 58 Member Voices

MEETINGS + EVENTS MEETING & EVENT MANAGER NICOLE COON EDUCATION EDUCATION & SPECIAL PROGRAMS MANAGER TOM GAVARAS EDUCATION & SPECIAL PROGRAMS COORDINATOR MARY BETH BLOM FINANCE, MEMBERSHIP + ADMINISTR ATION VICE PRESIDENT OF FINANCE JANICE MEYER FINANCE DIRECTOR TAMMI HALL MEMBERSHIP MANAGER HEATHER GRIFFIS FOUNDATION FOUNDATION MANAGER DONNIE BROWN INDEPENDENT CONTR ACTORS ADVERTISING & SPONSORSHIP SALES KORI MEEWES & BRAD MEEWES, and more by Kori

Association members share their new hobbies from the stay-at-home order

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.

4

The Digest

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

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26301

FROM THE PRESIDENT

The Value of Membership Let’s assume that your membership dues invoice for Housing First Minnesota just arrived in your email inbox. Like every company in the midst of this pandemic and economic upheaval, you are evaluating every expense and holding onto your cash tightly. Perhaps you made it through the last Great Recession and you learned some lessons. So, you take a moment to think about your association and the value it has provided you in the past few months, and throughout the past year.

I hope as you do that, you recall this column and it motivates you to renew promptly. As your president, and as a builder, here are just a few key benefits I’ve seen our members gain from Housing First Minnesota (to list them all would take a third page and you probably wouldn’t read it).

GARY KRAEMER 2020 HOUSING FIRST MINNESOTA PRESIDENT

Advocacy Critical Industry Designation.

Perhaps the most substantial benefit in the past 12 months is simply the ability to continue to build, remodel, and sell homes during the COVID-19 pandemic. Roughly 25% of the country was shut down for construction for two months, while we’ve been able to continue working. We were named a critical industry thanks to the work of our association. Ask yourself this simple question, “What would it have meant for my business if I couldn’t build, remodel, or sell for eight weeks of the prime spring season?”

But even before COVID-19, we gained some really important successes.

•

We rolled back a requirement in Lakeville for storm shelters in the case of slab-on-grade construction.

•

We worked tirelessly on the new building code, which went into effect this May, to ensure that it does not increase costs for our buyers.

•

We made the case why a new energy code isn’t necessary—we already build incredibly efficient homes in Minnesota. Our Green Path Program proved vital in this discussion as we could demonstrate to DLI through our Home Performance Reports that the average home in Minnesota is constructed with a HERS index of 51 (100 is the standard and the lower the score the better).

60-day Rule Sustained.

Although we were declared an essential industry, the local governments nonetheless sought to suspend the 60-day rule for approvals for the life of this emergency declaration, which could go into 2021.

Our association protected our ability to secure approvals (land, variances, developments) and move forward in the new world of digital meetings and review.

•

We knocked down proposed impact fees, which have the potential to dramatically increase the price of homes for our buyers. But, impact fees of all kinds will be back as cities struggle with budget shortfalls in the wake of COVID-19.

•

We challenged and delayed the proposed electrical code, which could add roughly $2,000 to the price of a home.

•

We’ve substantially modified the Lead Paint RRP rule, which has been in consideration for more than a year, making the proposal far less onerous for our remodelers.

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

The Digest

7

Marketing Perhaps as you consider renewing your membership, you acknowledge the good advocacy work, but it somehow seems distant. You are having a hard time understanding its direct impacts on your business.

Marketing, on the other hand, is your ticket. If so, you’ll be thinking about the Parade of Homes and our other tours.

As we were seeking critical industry designation, we collaborated with the Minnesota REALTORS® and the MLS. They paused open houses, and we paused the Parade of Homes. It was a very difficult decision, but the right one for our industry.

Virtual Tour Launched, Regular Tour Follows.

As the initial chaos brought on by COVID-19 calmed a bit, Housing First Minnesota leadership felt it was the right time to resume the Parade of Homes in a virtual fashion. The housing industry nationwide pivoted to digital and virtual with remarkable speed after the onset of COVID-19. It was a trend already occurring, but the virus changed the pace from several years to several weeks. We were able to make major modifications to our website platform in a matter of weeks to highlight floor plans, virtual tours, and photography, and allow more direct connection to the builder to set appointments for showings.

With the governor then declaring in mid-May that retail could be open at 50%, we successfully morphed our virtual tour into one that allowed for visits to models, with all appropriate and necessary safety precautions.

Directional signs were distributed, and the advertising shifted from promoting the virtual event to promoting visiting model homes.

Parade of Homes participants received outstanding benefit from the association: •

Five full weeks of a touring event

•

Two full weeks of a virtual event

•

Guidebooks in Holiday Stationstores for seven weeks (longer than has ever been the case)

•

Virtual tours on the website from now through the next tour

•

Reggie awards continued even in the midst of the pandemic

Affinity Programs If advocacy and the Parade of Homes aren’t enough, maybe you’re inspired to renew by saving dollars directly through association affinity programs.

Belzer Automotive Discount.

Every vehicle you purchase from Belzer Automotive qualifies for a $750 discount because of your membership. Buy a couple of trucks and this is real money. This is a first-class dealership with great service and every brand you’d want.

I deal with these great people for my fleet and they have my highest recommendation.

Verizon Discount.

Members can obtain a 22% discount on Verizon cell phone service through the association. For many members, it’s several hundred dollars per year.

Association Health Plan.

Newly launched this year, the plan is providing average savings of 7%10% for participating members.

That’s more real money.

A few more benefits to highlight include our online education, excellent events, and the great work of our Foundation. I hope you take all of it into consideration and continue your support of your industry association. In challenging economic times, having a strong industry association fighting for us and leading us is vital. It will help us get through this stronger.

8

The Digest

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

GARY KRAEMER 2020 HOUSING FIRST MINNESOTA PRESIDENT

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

The Digest

9

UP NEXT

Events UPCOMING

Golf Open Connect and mingle with industry partners during an afternoon on the course. There will be two simultaneous afternoon shotguns.

Golfer registration is sold out. Sponsorships are still available.

O P E N

DETAILS AT

HousingFirstMN.org/ events

August 6

Parade of Homes Tour hundreds of new homes from Housing First Minnesota members across the Twin Cities during the largest Parade of Homes in the country. Homes are open Thursdays-Sundays from noon-6 p.m.

PLAN YOUR TOUR AT

ParadeofHomes.org

September 12-October 4

B U IL D

TUR IN G F U

GOLF

ES

IC CLASS

Building Futures Golf Classic Join us for a day of friendly competition and camaraderie, all while making a difference. This is a four-person scramble fundraising event to support the Housing First Minnesota Foundation’s work building housing for Minnesotans experiencing homelessness.

Golfer registration is sold out. Sponsorships are still available.

DETAILS AT

HousingFirstMN Foundation.org/ golfsponsorships

September 15

Housing First Minnesota Foundation Gala Celebrate 25 years of building futures through housing at our virtual Housing First Minnesota Foundation Gala! Show your support for the tangible impact your Foundation is making on the lives of Minnesotans experiencing homelessness and win fantastic prizes.

DETAILS AT

HousingFirstMN Foundation.org

October 1

Remodelers Showcase Tour dozens of remodeled homes from Housing First Minnesota members all across the Twin Cities. Homes are open from noon-6 p.m.

October 2-4

10

The Digest

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

PLAN YOUR TOUR AT

ParadeofHomes.org

REGISTER AT

Clay Shoot BRANDING IN DEVELOPMENT

Enjoy a day of networking in a unique way! Sign up as an individual or bring a team of your colleagues or business partners for an afternoon on the range. Don’t miss out on the fun—this event quickly sells out.

HousingFirstMN.org/ events

October 6

Artisan Home Tour

PLAN YOUR TOUR AT

Plans are in place for our seventh annual Artisan Home Tour this October. This ticketed tour showcases high-end homes throughout the Twin Cities while raising money for the Housing First Minnesota Foundation. Homes are open Fridays-Sundays from 11 a.m.-5 p.m.

ArtisanHomeTour.org

October 9-25

BIG Night

MORE INFORMATION AT

Save the date for the BIG Night, a night where we celebrate all the incredible work of the industry and honor our award winners. You know it will be a BIG night whether in-person, virtual, or a hybrid of the two. Our committee and team are hard at work to execute this spectacular event in a new and responsive way. Additional details will be available soon.

HousingFirstMN.org/ events

October 23

Green Path Building Conference ®

This year’s annual Green Path Building Conference will be held virtually featuring national instructors including Gord Cooke from Construction Instruction and Todd Gamboa from Building Trust LLC. Learn how Minnesota compares to other states in energy efficiency and more.

Designated Green Path Builders receive one free registration.

LEARN MORE AT

MNGreenPath.org

November 10

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.

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

The Digest

11

UP NEXT

Need to Know Leadership Institute Now accepting applications for the sixth series of the Leadership Institute. The Leadership Institute will prepare your company’s up-and-coming leaders to take a strong and confident leadership role in your business. Join more than 70 students who have benefitted from this course since its inception.

Contractor University Online Classes Earn your continuing education credits through Contractor University’s online courses—available anytime. With more than 10 courses to choose from, you’ll find specialized classes that provide useful and practical knowledge to apply to your business. Courses include the required energy and business management training.

APPLY AT

HousingFirstMN.org/ LeadershipInstitute

SPONSORED BY

ONLINE COURSES AVAILABLE YEAR-ROUND AT

ContractorU.com

Fall Awards Deadlines Call for Instructors Share your expertise with the membership! We’re looking for Contractor University instructors who can provide top-quality online courses for our upcoming continuing education series.

FIND REQUIREMENTS AND SUBMIT YOUR APPLICATION ONLINE AT

HousingFirstMN.org/Instructors

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!

HousingFirstMN.org/Awards CLOSED June 12: ROMA Entries Due CLOSED July 8: Fall Reggie Entry Due CLOSED July 10: Builder, Remodeler, Associate of the Year Entry Due CLOSED July 10: Rising Star Nominations Due July 24: Bennie Entry Due

COMMITTED TO BUILDING GREEN.

July 24: Fall Trillium Entry Opens July 31: Robert L. Hanson Lifetime Achievement Award Nomination Deadline Aug. 7: Rising Star Materials Due Aug. 7: Builder, Remodeler, Associate of the Year Evaluations Close Aug. 28: Fall Trillium Entry Due

Green Path Designated Builder Become an industry leader with the Designated Green Path Builder program. Join 35 builders that have received this designation. Enjoy recognition in both building industry and consumer marketing, and gain access to exclusive Designated Green Path Builder program benefits.

DETAILS & REGISTRATION AT

SPONSORED BY

MNGreenPath.org

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The Digest

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

Sept. 24: Reggie Entry Photos Due

OTHER EVENTS & PROGRAMS Deadlines on many of our upcoming events and programs are still being determined.

Check HousingFirstMN.org for the most up-to-date details.

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ADVOCACY IN ACTION

Senate Passes Significant Housing Policy Reform Bill in Final Hours of Legislative Session

LEGISLATIVE ADVOCACY

Final Deal Fails to Get Across the Finish Line The 2020 Minnesota legislative session began with the great housing debate. The early weeks included introductions of dozens of bipartisan housing policy bills and a press conference announcing a series of proposals aimed at “Legalizing the American Dream” of homeownership.

Legislative committees began hearing these and other housing-related bills throughout the following weeks. Numerous bills related to zoning reform, creating efficiency, and promoting transparency in housing regulatory costs were poised to advance further. Then, COVID-19 froze the legislature in its tracks. Nearly all unrelated legislation was put on the sidelines.

But, as the legislature turned the final corner, housing once again emerged as a vital subject. From the many policy initiatives to emergency rental assistance to bonding for the Minnesota Housing Finance Agency, the discussions were active in both bodies and all four caucuses.

As the clock wound down on May 17, the Senate debated a bill that included a number of transformative housing provisions. Among other things included in the bill were many Housing First Minnesota priorities including: •

DLI could not adopt a new building code until 2026 unless approved by law

•

New provisions to the energy code could not be adopted unless they have proven to have a payoff within 5 years

• FOLLOW OUR ADVOCACY EFFORTS ON TWITTER FOR THE LATEST UPDATES

@HFMNADVOCACY

Exclude single-family homes from the mandated windowfall protection

•

Changes to the building permit reporting from municipalities

•

Encouraging municipal plans to allow for more density

•

Cities would not be allowed to condition approval of a project on the use of specific materials, design, amenities, or other aesthetic conditions

•

Building permit issuance time limit established

The bill passed on a bipartisan basis 35-32. The House of Representatives had previously approved a housing bill with bonding dollars and emergency rental assistance, but no policy provisions. Session adjourned with no final housing deal.

Gov. Walz called the legislature back in mid-June for a special session that lasted a week and focused primarily on criminal justice reform and funding for local governments and construction projects. Similar to the end of the regular session, no major reforms were passed, and the legislature adjourned while locked in a stalemate.

Housing and the roadblocks to affordable, market-rate product received much attention this session and the industry did make incremental progress elevating these key issues. The stage is set for substantial reforms to address the growing affordability and inventory crisis in subsequent sessions.

Your Housing First Minnesota advocacy team is continually working to promote the muchneeded policy reform that would have a major impact on our housing market.

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

The Digest

15

ADVOCACY IN ACTION

LEGISLATIVE ADVOCACY

30 State Legislators Honored with Housing Leadership Award Housing First Minnesota, the state’s leading voice for housing, has named 30 Minnesota legislators as recipients of the 2020 Housing Leadership Award.

This honor recognizes legislators who worked to promote housing affordability and homeownership during the 2020 legislative session and 2020 special session.

“At a time when the housing affordability crisis continues to grow, these leaders played key roles in advancing housing affordability and homeownership opportunities for all Minnesotans,” said David Siegel, executive director of Housing First Minnesota. “These legislators understand that we need to bring all stakeholders around the table to address the complex issues that are driving up the cost of housing.”

Recipients of the Housing Leadership Award received a certificate and letter of appreciation.

Representative Kurt Daudt

Representative Steve Elkins

Representative Peter Fischer

Representative Pat Garofalo

Representative Barb Haley

Representative Jerry Hertaus

Representative Mike Howard

Representative Tony Jurgens

Representative Jon Koznick

Representative Shane Mekeland

Representative Joe McDonald

Representative Jim Nash

Representative Zack Stephenson

Representative Tama Theis

Representative Bob Vogel

Representative Ryan Winkler

Representative Dan Wolgamott

Senator Rich Draheim

Senator Kari Dziedzic

Senator Paul Gazelka

Senator Mike Goggin

Senator Dan Hall

Senator John Hoffman

Senator Karin Housley

Minnesota House of Representatives Representative Kurt Daudt (Crown) Representative Steve Elkins (Bloomington) Representative Peter Fischer (Maplewood) Representative Pat Garofalo (Farmington) Representative Barb Haley (Red Wing) Representative Jerry Hertaus (Greenfield) Representative Mike Howard (Richfield) Representative Tony Jurgens (Cottage Grove) Representative Jon Koznick (Lakeville) Representative Shane Mekeland (Clear Lake) Representative Joe McDonald (Delano) Representative Jim Nash (Waconia) Representative Zach Stephenson (Coon Rapids) Representative Tama Theis (St. Cloud) Representative Bob Vogel (Elko New Market) Representative Ryan Winkler (Golden Valley) Representative Dan Wolgamott (St. Cloud)

Minnesota Senate Senator Rich Draheim (Madison Lake) Senator Kari Dziedzic (Minneapolis) Senator Paul Gazelka (Nisswa) Senator Mike Goggin (Red Wing) Senator Dan Hall (Burnsville) Senator John Hoffman (Champlin)

Senator Jeff Howe

Senator Mark Koran

Senator Matt Little

Senator David Tomassoni

Senator Bill Weber

Senator Torrey Westrom

Senator Karin Housley (St. Mary’s Point) Senator Jeff Howe (Rockville) Senator Mark Koran (North Branch) Senator Matt Little (Lakeville) Senator David Tomassoni (Chisholm) Senator Bill Weber (Luverne) Senator Torrey Westrom (Elbow Lake)

16

The Digest

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INDUSTRY DATA

Fed Survey Shows Impact From COVID-19 on Construction in Minnesota The Slowdown As concerns grew around the current COVID-19 pandemic, Minnesota Gov. Tim Walz announced a statewide Stay-at-Home Executive Order that went into effect on March 27 which halted several economic sectors across the state to stop the spread of the virus.

Construction was deemed essential under the order which has allowed for construction projects to continue.

Under this, the homebuilding sector continued to build homes for Minnesotans.

Homebuilding in Minnesota, before COVID-19, was on track to have one of its best years in recent memory.

However, as the economic effects of the COVID-19 pandemic, such as job

18

The Digest

losses and pay cuts, rippled amongst consumers, homebuilders and other sectors of the construction industry have felt the effects.

The Federal Reserve Bank of Minneapolis has conducted a series of surveys since the onset of the COVID-19 in the state to gauge the economic standing of the state’s construction industry. The results of these surveys have been analyzed to study early ripple effects of the COVID-19 pandemic.

Each survey had over 500 responses from construction-related businesses throughout Minnesota. Housing First Minnesota encouraged members to have their individual experiences recorded and dozens of member organizations responded to each survey.

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

Ripple Effects Throughout the Industry Consumer confidence and anticipated future economic conditions are all factors that are considered when a construction project is proposed and planned. When these factors falter, projects are slowed or put on hold soon after.

According to one survey, 56% of delays were attributed to the general concern of the owner regarding project viability. Other factors noted by respondents included interruptions to municipal operations, such as permitting and inspections, and disruptions in supply chains.

A survey conducted in late May reported about 70% of respondents have seen at least one project canceled. Many more have seen current or future projects being delayed in some fashion.

THE FEDERAL RESERVE BANK OF MINNEAPOLIS SURVEY

STATE OF THE CONSTRUCTION INDUSTRY Has 1 your firm halted or delayed any public or private projects that: Are currently active or expected to start within days? or private projects that: Has your firm halted or delayed any30public Are expecting to start more than 30 days from now? are currently active or expected to start within 30 days? are expecting to start more than 30 days from now?

50%

40%

30%

20%

10%

0% Yes, a significant number

Yes, a moderate number

Yes, a small number

No

Don't know

SOURCE: FEDERAL RESERVE BANK OF MINNEAPOLIS Source: Federal Reserve Bank of Minneapolis

2 Outlook: How has COVID-19 changed your firm’s outlook for 2020?

Very pessimistic Slightly pessimisticchanged Slightly optimistic Very optimistic Outlook: How has COVID-19 your firm's outlook for 2020?

Moderately pessimistic

Flat/unchanged

Moderately optimistic

Don’t know/unsure

50%

40%

Very pessimistic Moderately pessimistic Slightly pessimistic Flat/unchanged Slightly optimistic Moderately optimistic Very optimistic Don't know/unsure

30%

20%

10%

0% Your outlook in early 2020 (before coronavirus)

Your outlook now

SOURCE: FEDERAL RESERVE BANK OF MINNEAPOLIS Source: Federal Reserve Bank of Minneapolis

Looking to the Future As projects are delayed and canceled, optimism from a stellar first few months of the year has faltered.

Summer and early fall are usually busy seasons in the construction industry and many respondents to the surveys fear this time of the year will not be as fruitful as anticipated.

Members of the construction industry indicated an overwhelmingly bleak outlook for the remainder of 2020; more than eight in 10 had a pessimistic outlook for 2020, and fewer than one in 10 had any optimism.

Additionally, almost two-thirds of responses indicated demand for construction projects being negatively impacted by coronavirus. Responses from homebuilders reported a slightly higher rate of project delays and issues with obtain materials due to supply chain issues.

The COVID-19 pandemic has rippled through the construction industry and left a host of issues in its wake.

Construction firms across the industry are hesitantly hopeful that as state and local economies begin to open again, so will demand for their services.

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LEading in

crisis A crisis can create chaos, confusion, fear. However, it can also create opportunity. Now is the time to rise to the occasion and provide the sort of leadership that calms the chaos, provides clarity in the confusion, and brings hope in the midst of fear. Unfortunately, doing so doesn’t always come naturally and there are a few characteristics and skills this sort of leadership requires. Just being the loudest voice does not calm the chaos. Just having a plan does not bring clarity to confusion. Just repeating aphorisms does not generate hope in the face of fear. Instead, here are five behaviors that will help you be a better leader in a crisis.

1.

2.

People do not willingly follow leaders they don’t trust and under it all, the foundation of trust is truth.

To effectively lead, you must always tell the truth.

Something other than the truth might work in the short term, but if you want to have trust for the long term, you have to be honest and upfront. Don’t lie, don’t fudge, don’t speculate, don’t make stuff up.

Make sure what you are telling people conforms to essential reality. If you don’t know, tell people you don’t know. And when you speak the truth, do it with compassion, especially if the truth is hard to hear.

When an animal faces chaos, confusion, or danger, their instinct or conditioning drives one of three reactions: fight, flight, or freeze. Humans with more evolved brains can respond differently than animals. When we face danger and fear, we have a better fourth option. We can think critically with imagination. Our imagination provides a way for us to create a mental picture of a desired future better than today. Great leaders use their creative and critical thinking skills to overcome the fight, flight, or freeze instincts in order to make optimal choices.

TELL THE TRUTH W I T H C O M PAS S I O N .

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T H I N K C R I T I CA L LY W I T H I M A G I N AT I O N .

BUSINESS TIPS

3.

ADJUST COURSE WITH A PLAN. Once we’ve used critical thinking to imagine a better future, we must create a plan to adjust course and bring it into reality. Great leaders realize what got them to this place may not be what moves them forward. Especially when in an external crisis where the environment or market is changing, it is critical for leaders to adjust course in thoughtfully planned out ways.

4.

A C T Q U I C K L Y W I T H F L E X I B I L I T Y. As mentioned, one common response to crisis is to freeze. Many people want to wait to see what develops before they act or make changes because they are afraid to make a mistake. However, those who survive during crisis and thrive afterward are usually the ones who adjusted course quickly. It has been interesting to see how quickly some marketing messages became irrelevant and how quickly some companies adjusted their messaging to fit the current COVID-19 crisis. The leaders who act quickly with flexibility have the opportunity to rise to the top.

5.

GET HELP FROM EXPERTS. The old adage “you can’t do it alone” is especially true during a crisis. As good leaders think critically and act quickly, they also seek help. Who are your trusted advisors you can lean on when things get tough? A good network of people with a variety of expertise is important now more than ever. Great leaders should always be building and nurturing a network of people who, at the time of the initial meeting, might not have much to offer but at the time of crisis, can provide critical help. Truly effective leaders know they can’t do it alone and regularly look to others to provide help and expertise.

Those who effectively lead through uncertain times can overcome chaos, confusion, and fear. They do this by always telling the truth to themselves and those they lead. They use imagination and think critically as they adjust course with quick, flexible actions. Finally, they seek the help of others as they navigate the chaos and uncertainly.

Throughout his 30+ years of business experience, Jerry Olson has provided leadership inside organizations as well as facilitated leadership development as a business advisor and human resources consultant.

WRITTEN BY: JERRY OLSON, THE RESULTANTS

After many years of running his own consulting and facilitation business, Jerry partnered with The Resultants, a leading Twin Cities business advisory firm, in 2013. As a business advisor, Jerry 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. In addition, Jerry and The Resultants have provided instruction and curriculum for Housing First Minnesota’s Leadership Institute for the past five years.

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BUSINESS TIPS

CYBERSECURITY DOESN’T TAKE A BREAK FOR THE PANDEMIC The worldwide COVID-19 pandemic and wide stay-athome orders have not resulted in a pause on the need for cybersecurity. Indeed, cybercriminals are more active than ever, exploiting companies’ understandable distraction in addressing the challenges of the pandemic.

The requirements of cybersecurity remain the same and it is more important than ever that builders remain diligent.

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DO BUILDERS NEED TO WORRY? Many builders and small businesses see themselves as a “little fish” that cybercriminals won’t bother to attack.

The news is filled with major companies being victims of cybersecurity attacks.

This can create a misperception that builders are not vulnerable.

77% OF EXECUTIVES IN THE CONSTRUCTION, ENGINEERING, AND INFRASTRUCTURE INDUSTRY SAID THEY HAVE EXPERIENCED A CYBERSECURITY INCIDENT IN THE LAST 12 MONTHS.

There have been major construction industry security breaches. The use of Building Information Modeling and Virtual Project Management software have made construction projects increasingly vulnerable to cybersecurity attacks.

One recent study noted that the highest percentage of phishing attacks, including spam, went to construction-related industries.

Many people believe that the construction industry is less vulnerable because it deals more with “tangible items” rather than digital information.

However, construction companies have increasingly created virtual construction tools for design, project management, and customer tracking. In an increasingly automated environment, payment

information, designs, and customer information are ripe for cyberattack and ransomware breaches.

30% of real estate executives with one or more properties have experienced a cybersecurity event in the last two years, and 50% of the real estate industry says their organization is not adequately prepared to mitigate a cybersecurity attack. Yet, only 5% of respondents noted cybersecurity threats as a serious risk to their business.

77% of executives in the construction, engineering, and infrastructure industry said they have experienced a cybersecurity incident in the last 12 months.

One crucial thing to remember is many cybersecurity incidents are caused by exemployees not cybersecurity criminals.

Ex-employees were responsible for a third of all cases of fraud. Common targets for cybersecurity attacks against construction companies are customer records, employee records, and physical assets/money.

ONE CRUCIAL THING TO REMEMBER IS MANY CYBERSECURITY INCIDENTS ARE CAUSED BY EX-EMPLOYEES NOT CYBERSECURITY CRIMINALS. EXEMPLOYEES WERE RESPONSIBLE FOR A THIRD OF ALL CASES OF FRAUD.

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BUSINESS TIPS

CONTRACTING TO LIMIT THE THREAT THIRD PARTIES - VENDORS. When a third party causes a data breach, the cost increases by $13 per compromised record.

Thus, it is crucial that companies look not only to their own vulnerabilities, but also attempt to minimize risk caused by third-party providers and vendors.

SYSTEM AND PLAN REQUIREMENTS. Simply imposing contractual obligations for indemnity may be insufficient as the vendor may not have sufficient wherewithal to actually protect the indemnified party from risk. Thus, it is crucial that companies seek detailed information about the vendor’s security processes, firewalls, and encryption. This ideally should include the vendor’s own internal risk assessments, and whether or not the vendor has met the standards set by NIST, SSAE 16, or the ISO. INDEMNITY PROVISIONS. Companies often demand that a vendor “indemnify and defend” the company from any and all losses, damages, or risks as a result of a cybersecurity breach.

Unfortunately, such broad indemnity obligations, while legally enforceable, do not protect the indemnified company from the harm to its business and reputation, and, in many cases, the vendor may simply be unable to meet the financial obligations and

liability stemming from the promise contained in the indemnity.

PRIVACY. Some laws require clear agreements by and between parties to protect personal private information and vendors.

For example, HIPAA requires that covered entities ensure HIPAA compliance in a Business Associate Agreement, and parties otherwise in possession of PII can also be subject to required contracts.

RIGHT TO AUDIT. All third parties/vendors should be subject to a “right to audit” provision, which subjects to review any of their records, data, or other information that may be impacted by the sharing of private, confidential, or sensitive system information.

TESTING AND SECURITY REVIEW. Vendors and third parties should be subject to penetration testing and security information reviews to ensure system and data integrity.

INSURANCE LIMITATIONS. There is no “industry standard” cyber insurance policy. Companies with insurance protection save on average $4.8 per record breached. As the nature of the cybersecurity threat evolves, insurance companies and their products are attempting to assess the risk and create appropriate coverages.

INVESTING IN SECURITY HARDWARE. Making sure the network is protected from physical (i.e. criminal) intrusion or theft.

NETWORK. Investing and maintaining up-to-date system security is key: •

Password protection

•

Access limited by need

•

Access information and authentication

•

Firewalls

•

Intrusion detection systems

•

Antivirus software

CONCLUSION Unfortunately, viruses are not limited to the pandemic. Now more than ever cybercriminals are looking to attack builders. The health of employees and a functioning computer system require diligence and the investment of time and money.

ADOPTING A RISK SECURITY FRAMEWORK. Hire an outside company to do a Risk Assessment and adopt an appropriate Incident Response Plan. Builders should strongly consider following the risk security frameworks and providing third parties assurance it is following proper risk remediation procedures.

TRAINING. For phishing attacks in particular, training is often the best defense from employees unwisely clicking on links or questionable documents. In any event, employees should be trained to immediately notify their IT staff if they have inadvertently clicked on malware.

WRITTEN BY STEPHEN E. YOCH, FELHABER L ARSON

Stephen Yoch is a partner at Felhaber Larson and has been representing builders and developers for over 20 years. Over the last decade, he has developed expertise in cybersecurity, focusing on construction companies. He received a cybersecurity certificate from Mitchell Hamline Law School in 2016.

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BUSINESS TIPS

Adaptability Builds Resilience From enhanced safety practices to virtual connections with clients, the housing industry pivots.

As Minnesotans adjusted to the state-wide shelter-inplace order, many housing industry members were deemed essential services, allowing businesses to continue operating. But the uncertainty and challenges that came from the pandemic resulted in many businesses adjusting their operations—from new ways of connecting with customers to enhanced safety and sanitation practices. Successfully adjusting to these new norms requires companies to be agile and adaptable.

Job site signage from Missy Scherber of T. Scherber Demolition & Excavating.

ADAPTING TO:

New Safety Practices Safety has always been paramount on a construction site, and the industry quickly put in place new rules and procedures to keep workers safe through the pandemic.

Companies addressed the need for stricter safety and sanitation through many new guidelines including requiring all sick employees to stay home, frequently washing hands, refraining from sharing tools and equipment, and regularly disinfecting all surfaces and equipment. Other measures include staggering start times to reduce the number of people arriving for work at a time and limiting the number of trades on a job sit at one time.

Vujovich Design Build, Inc. requires team members to wear face masks and sanitize their hands while interacting with clients.

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

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ADAPTING TO:

Virtual Visits As social distancing became critical to help slow the spread of the virus, virtual practices quickly became commonplace within workplaces and when consulting with customers.

Builders, remodelers, and associates started conducting virtual appointments and connecting with partners and clients through social media and video conferencing.

The Spring Parade of Homes was relaunched virtually before safely reopening model homes in tandem with retail stores.

Through video tours, photo galleries, and 3D walkthroughs, homebuyers were able to explore homes from the tour while at home. Although virtual tours don’t replace the experience of seeing homes in person, the crisis has sped up

the timeline for incorporating technology into the process of buying or remodeling a home.

“All the virtual tour enhancements on the website will be invaluable for future tours,” said Dawnita Parmely, vice president of marketing at Housing First Minnesota.

“Virtual tours won’t replace the importance of visiting a home in person, but the changes allow homebuyers to connect with the builders in a new way and streamline the process of narrowing down what type of home will work for their lifestyle.”

When offering virtual options for clients, flexibility is key. A 3D walkthrough of a home may be a great option for a buyer looking to explore floor plans, but some clients might prefer a one-onone video conference to ask questions.

OneTenTen Homes, LLC promotes private tours at their spring Parade of Homes model.

Women in Construction (WINC) held weekly virtual roundtables discussing topics ranging from social media tips to diversifying your business to utilizing your strengths to support the industry.

Mpls.St.Paul Home & Design hosts Instagram live design chats with housing industry professionals.

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Housing First Minnesota’s Ask the Expert videos dove deeper into questions from members on workplace safety, the impact of the virus on permits and inspections, federal loan programs, and more.

The Spring Parade of Homes launched virtually with enhanced features before reopening model homes.

Pella’s Pro Talk Sessions are devoted to giving professionals the insights and information they need.

Housing First Minnesota hosted a virtual happy hour that gave members the opportunity to casually connect.

ADAPTING TO:

Digital Connections & Knowledge Sharing As the shift to videoconferencing, email, and social media eclipsed in-person connections, many companies were engaged with their teams and customers more than ever. As companies started investing more in digital and social to connect, opportunities grew for industry members to share their expertise to help support one another.

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

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MARKET U P D AT E

Parade of Homes & the Millennial Generation The Parade of Homes has a 70-year-plus history that has made it a well-loved and respected brand for homebuyers across the state.

As the tour and homebuying grow and evolve, it’s vital that we conduct the necessary research to elevate the brand for our builders and remodelers and to provide homebuying insight for our members.

This spring, the Applied Business Research class at the University of St. Thomas conducted research on the millennial generation and their relationships with the Parade of Homes and homebuying through secondary research and primary research consisting of focus group participants, in-depth interviews, exit interviews, and surveys.

Here’s a look at what they found through their research.

Note: The majority of research was conducted prior to the state-wide shutdowns.

www.hospitalwebsite.com www.hospitalwebsite.com

www.hospitalwebsite.com

HOME #83 BY MODERNO HOMES ON THE SPRING PARADE OF HOMES

70

%

were familiar with the Parade of Homes

SOURCE: UNIVERSITY OF ST. THOMAS PRIMARY RESEARCH

HOSPITAL HOSPITAL HOSPITAL

How soon do millennials hope theWaiting perfect home How soon do millennials hope Waiting to forforthe home How soonto do millennials hope to for Waiting theperfect perfect home www.hospitalwebsite.com HOSPITAL purchase a home? purchase purchase a home?a home?Waiting for the perfect new home Waiting for(74%) the perfect newhome home (74%) Waiting for the perfect new (74%)

How soon do millennials hope to Waiting for the perfect home Getainto a new home as soonas as possible possible (17%) in the next (48%) 1-3 years from (46%) Getnow into a new home as into soon as possible (17%) Get new home as soon (17%) in the next year (48%) 1-3year years from nowyear (46%) in thesoon next (48%) 1-3 years from now (46%) How do Would they rather wait for the perfect purchase a home?

Not sure (9%) 3+millenials years from now (6%)hope Not sure (9%) Waiting for the perfect new home (74%) Not sure (9%) 3+ years from now (6%) 3+ years from now (6%) to purchase a home? home or find a home as soon as possible?

Get into a new home as soon as possible (17%) in the next year (48%) 1-3 years from now (46%) 3+ years from now (6%)

Not sure (9%)

48% in the next year 46% 1-3 years from now 6% 3+ years from now

Where do millennials want to live?

SOURCE: UNIVERSITY OF ST. THOMAS PRIMARY RESEARCH

City (39%) Close ring suburb (26%) Outlying suburb (24%) Outside the metro area (11%)

74% wait for the perfect home 17% get into a new home as soon as possible 9% not sure

What are the most important factors SOURCE: UNIVERSITY OF ST. THOMAS PRIMARY RESEARCH for millennials when choosing a location?

Length of commute to work (37%)

School district or area school (20%) Where do millennials to live?

What are thefactors most important factors Where do millennials millennials want live?want What are the most important factors Where do want toto live?

What are the most important Near parks or outdoor activities (11%) for millennials when choosing a for millennials when choosing a Sense of Community (9%) City (39%) Close ring suburb (26%) for millennials when choosing a City Close ring suburb (26%) City(39%) (39%) Where Close ring suburb (26%) What are theactivity most do millenials want tometro live?

Restaurant and entertainment (9%) important factors for location? location?

Outlying suburb (24%) Outside the area (11%) Outlying suburb (24%) Outside the metro area (11%) location? of(37%) commute to work (37%) of commute to work Outlying suburb (24%) Outside the metro area (11%) Other (14%) LengthLength of commute to workLength (37%)

millenials when choosing a new home?

School district or area school (20%) area school (20%) SchoolSchool districtdistrict or area or school (20%) Near parks or(11%) outdoor activities (11%) Nearor parks or outdoor activities Near parks outdoor activities (11%) SenseSense of Community (9%) Sense of Community (9%)of Community (9%) Restaurant and entertainment activity (9%) Restaurant and entertainment activity (9%) Restaurant and entertainment activity (9%) OtherOther (14%) (14%) Other (14%)

39% city 26% close ring suburb 24% outlying suburb 11% outside the metro area

SOURCE: UNIVERSITY OF ST. THOMAS PRIMARY RESEARCH

30

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HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

37% Length of commute to work 20% School district or area school 11% Near parks or outdoor activities 9% Sense of community 9% Restaurant and entertainment activity 14% Other

SOURCE: UNIVERSITY OF ST. THOMAS PRIMARY RESEARCH

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Q+A

Q. What are the most important precautions to put into place to protect employees and trade partners?

Ask the

Safety Expert Keeping Workers and Customers Safe and Healthy

First and foremost, any employee, subcontractor, or trade partner that is feeling ill or exhibiting signs or symptoms of COVID-19 must stay home. Properly wearing and using personal protective equipment (PPE) is paramount. Everyone on the job site should wash hands frequently or use a hand sanitizer that is at least 60% alcohol. Without impeding worker safety, social distancing should be practiced, and workers should maintain 6 feet of separation. When possible, each home should have a limit of one trade at one time.

Housing First Minnesota provides answers to these common COVID-19 safety and cleaning questions for residential construction and remodeling.

Q. What is the best way to communicate safety measures to employees and trade partners?

SAFETY EXPERT NICK ERICKSON, DIRECTOR OF RESEARCH & REGUL ATORY AFFAIRS

Nick Erickson, director of research and regulatory affairs, serves as Housing First Minnesota’s point of contact for the housing industry’s regulatory agencies and local government entities. He also leads the Housing Affordability Institute’s research programs. Throughout the COIVD-19 pandemic, Nick has provided members with up-to-date safety guidance and recommendations to ensure members comply with state guidelines and protect our industry’s essential status.

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

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Clear and open communication with anyone coming to a job site is key. Set clear expectations and inform all employees, trade partners and subcontractors to ensure everyone is informed. Display posters of all safety measures and expectations throughout the job site to remind everyone of safety measures.

Q. What can be done about limited available tools on a job site?

Clean and frequently disinfect any shared tools, and ensure those using any of these tools are using proper PPE and following all safety and prevention measures.

Q. As model homes and sales centers reopen and open houses resume, what steps should be taken to ensure customers are protected?

Limit access to model homes and sales centers to 10 people at one time. Reduce contact with shared surfaces and frequently clean surfaces that staff and customers do use. Instruct different groups touring a model home or sales center to practice social distancing. Signage and clear communication can help ensure customer and staff safety in this instance as well.

Q. What can we do about the shortage of N95 masks?

With access to N95 masks limited, alternative practices may need to be implemented to control or reduce dust, such as a wet method or use of a portable local exhaust system.

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Partnering to Provide Life-Changing Housing Can you imagine struggling with chemical addiction and needing a safe place to live with a little one? That was the situation for Heather and her 2-year-old daughter, Lila. Now, thanks to the Housing First Minnesota Foundation/HomeAid Twin Cities and build partners Mega Remodel and Cardinal Remodeling, Heather and her daughter have a place to live as she enters Avivo’s Family Recovery program to receive the support and housing needed to thrive.

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BUILDING FUTURES

Avivo is one of the few chemical abuse treatment facilities in Minnesota that offers programming and housing to women with children and allows the child to live on the premises while the mother receives support and undergoes treatment.

“I really value what Avivo does for the local communities that are in need,” said Meg Jaeger, owner of Mega Remodel. “As a part of the housing industry, I really wanted to use my skills and talents to do something like this for those in need. But being a small remodeler, I was hesitant about how much I could take on.”

That’s when Mega Remodel partnered with Cardinal Remodeling to split their resources and get to work. Partnership makes these essential projects possible.

“The ability to work with another company and complete this project was huge,” said Tom Wiener, owner of Cardinal Remodeling. “We both were able to do our part with our subcontractors and rely on each other.”

Giving the Apartment New Life

I’m going to use [my time] while I’m here as a steppingstone to getting back into working, independence, and being a successful mom for Lila.”

The basement space once used for storage was transformed into a beautiful two-bedroom apartment where mothers can heal and nurture their children. It was a complete overhaul. The team took everything out and broke into a storage space to redefine the floor plan.

“When we first looked at the project, it clearly needed a full

rehab, but as we moved along and got through the demo, it was clearer how much more work needed to be done,” explained Jaeger.

The team was able to quickly pivot when they ran into surprises throughout the remodel, revamping their plans as they went.

When all was said and done, the apartment unit was unrecognizable with all new windows, mechanicals, insulation, sheetrock, trim, doors, cabinetry, countertops, lighting, and flooring—the list goes on and on.

“We think it is important to help others that may be in need in our community. The end product was what made this project so special— to see the before and after and know what we have done will make an impact,” said Wiener. “It was especially heartening to hear the words of the Minneapolis building inspector after the final inspection, as he said how great the job had turned out and that this helped to restore his faith in mankind.”

The housing created through this project increases Avivo’s shelter capacity, allowing them to serve even more women and children.

“I’m going to use [my time] while I’m here as a stepping-stone to getting back into working, independence, and being a successful mom for Lila. It’s ideal to have a place like this,” said Heather at the ribbon-cutting ceremony for her new apartment. “This is amazing. I couldn’t dream of something like this.”

HEATHER, PARTICIPANT OF AVIVO’S FAMILY RECOVERY PROGRAM Twin

Cities

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

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BUILDING FUTURES

Playhouses for Good Playhouses constructed at the Builders and Remodelers Show spread joy to nonprofits throughout the Twin Cities As part of Housing First Minnesota’s Builders & Remodelers Show this past February, nine teams of students from Minnesota technical colleges and high schools assembled at the Minneapolis Convention Center to demonstrate their ability to use tools, read plans, and more by building playhouses.

The teams were comprised of students from Eagan High School, Hennepin Technical College, Northeast Metro 916, Roseville Area High School, Saint Paul College, St. Peter High School, and Wayzata High School, and each was led by a mentor from one of the association’s member builders or remodelers. Students had the chance to improve their construction skills, learn about safety and the proper use of tools, and establish contacts with leading area builders. This spring, the assembled 6’x6’ playhouses are being distributed to various nonprofit

organizations and even a contest winner.

Two of the playhouses are headed to homes the Housing First Minnesota Foundation has built for Minnesota Assistance Council for Veterans (MACV), a 501 (c)(3) nonprofit organization that has been serving veterans and their families who are homeless or at risk of becoming homeless across the state of Minnesota.

Additional playhouses are being provided to AVIVO for two of the apartment unit renovation projects that the Housing First Minnesota Foundation, along with many of their build partners, have completed.

These renovated apartments serve as transitional housing for women seeking recovery services for addiction while living with their children.

Lutheran Social Service of Minnesota will take ownership of a playhouse as part of a backyard renovation project at Life Haven with services provided by members of Women in Construction (WINC) set to occur later this summer.

Two of the playhouses are already being enjoyed. One was a popular silent action item at the Hometown Heroes Outdoors banquet; while the other was given away to the winner of the prize drawing held at BRS.

Want to get your hands on one?

Join us for the Housing First Minnesota Foundation Gala where one of the playhouses is slated to be an auction item.

FOR DETAILS, VISIT

HOUSINGFIRSTMNFOUNDATION.ORG

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BUILDING FUTURES

The next generation of our industry Meet Housing First Minnesota’s 2020 scholarship recipients Housing First Minnesota and the Housing First Minnesota Foundation are honored to award $16,000 in scholarships to 16 deserving recipients to help further their education and career goals within the residential homebuilding industry. These students are pursuing their way into our industry, and they are showing how bright and promising the future is for home construction.

WILLARD BURGESS ALEXANDRIA TECHNICAL & COMMUNITY COLLEGE, RESIDENTIAL CARPENTRY

EMMETT BARTYZAL MINNESOTA STATE UNIVERSITY - MANKATO, CONSTRUCTION MANAGEMENT

As a 5-year-old, Emmett and his brothers would build tree forts, imitating the work they saw being done on their new home being built. But it was when he took a construction trades class in high school that he got the chance to experience the thrill of building. “I am very passionate about construction and will continue that drive.” He hopes to own and operate his own construction business by the time he’s 28 years old.

Willard got hooked on construction when his family remodeled their home. As he started to consider a career, he knew he wanted to be outside, have a variety of work, and have the possibility to work for himself; in fact, he plans to own and manage his own business, including a cabinet shop. “I have no doubt that Willard will make a successful career in carpentry,” said one of his high school instructors.

DALTON BURNS DAKOTA COUNTY TECHNICAL COLLEGE, CONSTRUCTION MANAGEMENT

Between taking PLTW Construction Trades courses and talking with a cousin in the industry, Dalton was able to “… realize what I want to be in life.

The diligence and pleasure I can gain from working with my mind and hands will always be the greatest thing I could do for myself.” With this determination and passion, he hopes to one day own a construction business.

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

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JACK FLAHERTY UNIVERSITY OF WISCONSIN-STOUT, CONSTRUCTION MANAGEMENT

For his community service project to attain the rank of Eagle Scout, Jack led a small crew to build a 100-foot paver sidewalk with stairs for a church transitional home. He’s spent several summers working for his family stucco company and aspires to one day be the owner. As stated by a former Scout leader in one of his letters of recommendation, “[by investing] in Jack’s education, the quality of Minnesota housing will benefit.”

When not participating in school sports, being a member of his city’s volunteer fire department, or spending time building habitat houses for the local DNR, Ryan has developed an interest in the trades by working part time for a local homebuilding contractor. “I will be the first in my family to pursue the trades . . . and plan to work toward becoming a master electrician.”

NATHAN GALLES ALEXANDRIA TECHNICAL & COMMUNITY COLLEGE, GENERAL CARPENTRY

A two-time State Fair Blue Ribbon winner in woodworking, Nathan wants to purchase land and build his own home. In his personal essay, he said that “A ‘home’ is where people make and accomplish their dreams. I want to help people accomplish them by building homes . . . where they can have a place to start their dreams.” When not attending school, Nathan runs his own woodworking shop business.

RYAN GRAY LAKE SUPERIOR COLLEGE, COMMERCIAL & RESIDENTIAL WIRING

“If I were looking for a young, skilled, ambitious, and dependable person to add to my team, Tanner would be a great fit,” said one of Tanner’s former instructors.

A member of the National Honor Society, Tanner developed his strong work ethic by working on his grandparent’s farm. As an electrician, he hopes to be able to give back to his community by working on projects for those in need.

TANNER KLIMEK MINNESOTA STATE AND COMMUNITY TECHNICAL COLLEGE, ELECTRICAL TECHNOLOGY

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HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

A ‘home’ is where people make and accomplish their dreams. I want to help people accomplish them by building homes . . . where they can have a place to start their dreams.”

For the longest time I wanted to grow up and be like them, and with the career I have chosen, I believe I can fulfill that dream.”

NICOLAS LANHAM ST. CLOUD TECHNICAL COLLEGE, ELECTRICAL CONSTRUCTION AND MAINTENANCE

An active member of his community, Nicolas was an honor roll student at his high school and is part of the Honors Program and Presidents List in college. “My goal is to create electrical systems that complement people, make their lives easier, and make their homes more functional.” Described by others as being self-motivated, passionate, and dedicated, Nicolas hopes to become a master electrician so he “will have an even greater impact on the housing industry in my area.”

It started with a coffee table in one of her woodworking classes at her high school. It was then Delanie knew she wanted to build things with her hands.

“I absolutely fell in love with building things . . . and the pure joy of seeing the end results.” Her postgraduate plans include finding employment at a great homebuilding company and to one day own a homebuilding/interior design business.

DELANIE LAFAVE ALEXANDRIA TECHNICAL & COMMUNITY COLLEGE, CARPENTRY

MASON MOCK NORTHLAND COMMUNITY AND TECHNICAL COLLEGE, HVAC/ PLUMBING

The homebuilding industry runs deep in Mason’s family with both of his grandfathers working in the trades—one as a contractor, while the other worked in concrete. His stepfather has taught him a lot by having him help hang sheetrock and do electrical work, just to name a few experiences. “For the longest time I wanted to grow up and be like them, and with the career I have chosen, I believe I can fulfill that dream.”

ETHAN SCHARZROCK RIDGEWATER COLLEGE, CARPENTRY FRAMING

An honor roll student, Ethan has always enjoyed math and economics classes, but he has especially enjoyed his shop classes.

Active in sports and his church, he has spent time volunteering at a local organization doing outdoor maintenance. Ethan has also spent the last couple of summers working at a local construction company. “To me, there is no better feeling than when I finish a project and see the look of excitement in the customer’s face.”

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

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While growing up on his grandparents’ farm, Noah had many opportunities to learn to shingle, build corrals, painting, insulating, sheetrocking, and taping.

“When I was little, I loved to put together little birdhouses, and as I have grown older, I have continued my love for building.”

As a high school student, Noah has participated twice in building homes over the course of the year as part of a class.

JOSHUA SCHERT ANOKA TECHNICAL COLLEGE, CONSTRUCTION ELECTRICIAN

A trip to his birth country at 12 years old with his adopted mother had a huge impact on Joshua’s life. After seeing families living in poverty and learning that children could not read or write, he decided he would obtain a construction electrician degree and return one day to build them a school. One of his recommendation letters shared that “Joshua is committed to creating a successful future for himself . . . and he is driven to achieve.”

Ten years ago, when Olivia graduated with a Bachelor of Science in software engineering, she never thought she would return to school to learn carpentry. After returning from a weeklong timber frame building class, she immediately applied to the carpentry program. “I have never been ‘handy’ . . . but I learned [from being in class] that this is what I was meant to do—create. And I love every second of it.”

NOAH SCHLESKE NORTH DAKOTA STATE UNIVERSITY, CONSTRUCTION MANAGEMENT

OLIVIA SVENSSON HENNEPIN TECHNICAL COLLEGE, CARPENTRY

CINDY WUDDAH MINNESOTA STATE UNIVERSITY – MANKATO, CONSTRUCTION PROJECT MANAGEMENT

Cindy’s interest in the construction industry started after joining her dad at a volunteer project with Habitat for Humanity.

“I saw the kind of change I could do with more construction experience, driving me to pursue a career in construction with plans to help even more people.” She hopes with her education, she will be able to visit her native country of Ghana and help construct affordable residential projects to alleviate the overwhelming homelessness there.

JACOB ZANDER ANOKA TECHNICAL COLLEGE

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The Digest

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

I saw the kind of change I could do with more construction experience, driving me to pursue a career in construction with plans to help even more people.”

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JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

The Digest

43

2020 SPRING

Award Winners Congratulations to the recipients of our Spring Reggie and Trillium Awards!

Since 1968, the coveted Reggie AwardSM has recognized excellence in design and construction of homes in the Parade of Homes. This spring, there were 22 Parade Homes from 15 different builders awarded Reggies.

The Trillium Awards were established to honor the associates and trade partners for their collaboration with the award-winning builders and are given to all entered participating associate partners of a Reggie-winning home.

2020

REGGIE AWA R D W I N N E R SM

$299,999 & UNDER

Semler Construction, Inc.

44

2020

TRILLIUM AWA R D W I N N E R SM

$299,999 & UNDER

Benzinger Homes

#271 | Isanti | Builds 1-49 Homes/Year

#231 | St. Michael | Builds 50+ Homes/Year

Trillium Partners: Croix Design & Drafting, Inc.; Village Floor & Wall, Inc.; Warnersâ&#x20AC;&#x2122; Stellian Appliance

Trillium Partners: FocalPoint Flooring, Cabinets & Design; Pella Windows & Doors; Schwieters Companies, Inc.

The Digest

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

MEMBER SPOTLIGHT

$300,000 TO $399,999

Level Contracting, LLC

$300,000 TO $399,999

JP Brooks, Inc.

#273 | Isanti | Builds 1-49 Homes/Year

#268 | Zimmerman | Builds 50+ Homes/Year

Trillium Partner: Arrow Building Center

Trillium Partner: Croix Design & Drafting, Inc.

$400,000 TO $449,999

$450,000 TO $499,999

Hanson Builders, Inc.

Christian Builders & Remodelers

Trillium Partners: Pella Windows & Doors; Schwieters Companies, Inc.

Trillium Partners: J. Becher & Associates; Warnersâ&#x20AC;&#x2122; Stellian Appliance

#227 | St. Michael | Builds 50+ Homes/Year

#223 | Rogers | Builds 1-49 Homes/Year

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

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45

$450,000 TO $499,999

Creative Homes, Inc.

$500,000 TO $549,999

Ziegler Custom Homes, Inc.

#383 | Woodbury | Builds 50+ Homes/Year

#270 | Zimmerman | Builds 1-49 Homes/Year

Trillium Partners: C&J Stoneworks, Inc.; Home Media Innovations, Inc.; Pella Windows & Doors

Trillium Partner: FocalPoint Flooring, Cabinets & Design

$500,000 TO $549,999

$550,000 TO $599,999

Robert Thomas Homes, Inc. #29 | Lakeville | Builds 50+ Homes/Year

Robert Thomas Homes, Inc.

#388 | Woodbury | Builds 50+ Homes/Year Trillium Partner: Schwieters Companies, Inc.

46

The Digest

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

MEMBER SPOTLIGHT

$600,000 TO $699,999

Country Joe Homes

$600,000 TO $699,999

Stonegate Builders

#54 | Lakeville | Builds 1-49 Homes/Year

#432 | White Bear Township | Builds 50+ Homes/Year

Trillium Partners: FocalPoint Flooring, Cabinets & Design

Trillium Partners: FocalPoint Flooring, Cabinets & Design; Kariel Staging

$700,000 TO $799,999

$800,000 TO $899,999

Robert Thomas Homes, Inc. #27 | Lakeville | Builds 50+ Homes/Year

Hartman Homes, Inc.

#358 | Hudson | Builds 1-49 Homes/Year Trillium Partners: Arrow Building Center; Great Plains Millwork; Warnersâ&#x20AC;&#x2122; Stellian Appliance

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

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47

$800,000 TO $899,999

Robert Thomas Homes, Inc.

#180 | Plymouth | Builds 50+ Homes/Year

$900,000 TO $999,999

Charles Cudd Co., LLC

#138 | Victoria | Builds 1-49 Homes/Year Trillium Partners: Great Plains Millwork; Shaughnessy Flooring; Warnersâ&#x20AC;&#x2122; Stellian Appliance

$900,000 TO $999,999

$1 MILLION TO $1.2 MILLION

Hanson Builders, Inc.

Cuddigan Custom Builders, LLC

Trillium Partners: Pella Windows & Doors; Schwieters Companies, Inc.

Trillium Partners: FocalPoint Flooring, Cabinets & Design; River City Tile & Underlayment

#294 | Andover | Builds 50+ Homes/Year

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The Digest

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

#87 | Prior Lake | Builds 1-49 Homes/Year

MEMBER SPOTLIGHT

$1.2 MILLION TO $1.5 MILLION

Pebble Creek Custom Homes

$1.2 MILLION TO $1.5 MILLION

Hanson Builders, Inc.

#86 | Prior Lake | Builds 1-49 Homes/Year

#188 | Plymouth | Builds 50+ Homes/Year

Trillium Partners: Great Plains Millwork; Lelch Audio Video; Warnersâ&#x20AC;&#x2122; Stellian Appliance

Trillium Partners: Great Plains Millwork; J. Becher & Associates; Pella Windows & Doors; Schwieters Companies, Inc.

$1.5 MILLION TO $2 MILLION

$2 MILLION & ABOVE

Swanson Homes

Mark D. Williams Custom Homes, Inc.

Trillium Partner: Great Plains Millwork

Trillium Partners: Allstar Construction; Alpine Hardwood; Pella Windows & Doors; River City Tile & Underlayment; Trademark Wood Products, LLC

#157 | Orono | Builds 1-49 Homes/Year

#153 | Orono | Builds 1-49 Homes/Year

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

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49

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!

The best home painters in the business for over 30 years.

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cabinets, no finish is beyond us.

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50

The Digest

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

952-469-5901 www.cityscapepainting.com

SEEN + HEARD

Media in the

From member features to our Foundationâ&#x20AC;&#x2122;s charitable projects to the relaunched Parade of Homes, check out some of the places Housing First Minnesota has been mentioned on social and in the press this past quarter.

Member Feature The Star Tribune featured Steven Streeter and Streeter Custom Builder.

sincerely.savanna

@HOUSINGFIRSTMN

Streeter leads eponymous custom homebuilder through growth, leadership update, 2040 projects

all.things.petite

BLOGGERs HEAD OUT TO TOUR With the Parade of Homes reopened for three additional weekends, bloggers headed out to document their visits and share home inspiration with their followers on social media.

avivomn

Playhouse Deliveries Playhouses built by students and mentors at the Builders and Remodelers Show earlier this year were delivered to various nonprofits and charities throughout the Twin Cities area.

Parade of Homes Returns WCCO Saturday Morning reports on the virtual Parade of Homes and relaunched tour.

Everything Home Minnesota Our refreshed membership directory, Everything Home Minnesota, landed in membersâ&#x20AC;&#x2122; mailboxes early this spring.

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Family Recovery Housing The Housing First Minnesota Foundation wrapped up its Family Recovery Housing project with Mega Remodel and Cardinal Remodeling.

JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

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SEEN + HEARD

Media in the

@HOUSINGFIRSTMN

Ground broken on North St. Paul housing project for homeless vets

Housing for Heroes Groundbreaking Coverage from the Housing First Minnesota Foundation’s groundbreaking for their latest Housing for Heroes project in the City of North St. Paul with Lennar Minnesota and Minnesota Assistance Council for Veterans.

Spring Awards Economy may be ailing, but Twin Cities homebuilders keep humming along

Reggie and Trillium Awards were presented to award-winning new homes from this spring’s Parade of Homes.

Twin Cities homebuilders post best April since 2006 missyscherber

Twin Cities homebuilding hit hard in May

Industry Helps with Minneapolis Cleanup Missy Scherber’s team at T. Scherber Demolition, Excavating, and Roll-Offs delivered their first “Do Good Dumpster” when Minneapolis businesses needed support following the protests that erupted in the wake of the murder of George Floyd.

PErmit numbers Permit numbers provided by Housing First Minnesota are covered monthly by local news outlets.

52

The Digest

cuddigancustombuilders

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

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The Digest

53

SEEN + HEARD

&

Member News Announcements HAVE NEWS?

SEND YOUR ANNOUNCEMENTS TO LAURA@HOUSINGFIRSTMN.ORG

New members MARCH–MAY 2020 Air Max, LLC

Keith Viere 320-252-5602 AirMaxStCloud.com

Amba Property Development, LLC Nishul Patel 612-310-1405

Colonial Life & Accident Tim Carlson 651-398-3166 ColonialLife.com

Ruby + Suede

Kristen Schammel 763-270-7600 RubyandSuede.com

Samsung

Jonathan Cregor 303-827-4110

Style & Structure, LLC Joseph Braun 651-373-5427

Mike Hartman (President of Hartman Homes) and Dan Mitchell (NAHB’s Chairman of Custom Home Builders Committee)

Hartman Homes Receives National Award Recognition Hartman Homes was nominated for the 2019 National Association of Home Builders (NAHB) Custom Home Builder of the Year Award.

The award was presented at the 2020 International Builder’s Show in Las Vegas, NV. Although a North Carolina builder won the top honor, Hartman Homes was proud to be on the stage as one of three finalists in a very competitive competition of 37 builders from the best talent in the nation. The award is presented to the top builders, based on innovation in the industry, design and architecture of product, and participation and giving back to the communities they work in.

ASSOCIATION HEALTH INSURANCE Find details at HousingFirstMN.org

54

The Digest

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

New member Recruiters All, Inc.

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12/2/19 4:21 PM

The Digest

55

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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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The Digest

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

Save 22% off monthly cell service or 18% off personal cell service for companies performing a significant amount of physical construction services, as well as architects, engineers, and surveyors.

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JULY-SEPTEMBER 2020 | HOUSING FIRST MINNESOTA

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57

MEMBER VOICES

Member Voices:

Stay-at-Home Hobbies Spending more time at home during these past few months has provided many Minnesotans with the opportunity to learn a new skill or take up a new pastime. We asked members to share their newfound hobbies from the past few months—see what they had to say in this issue’s Member Voices!

Blakely Pancratz SWANSON HOMES

Our newest stay-at-home hobby is actually finding different places to get our dog, Rory, outdoors! As some of our favorite dog parks closed during quarantine, we started to look for new places where we could burn off his cooped-up energy. We discovered new walking trails, baseball fields, and even took advantage of empty tennis courts. Now that the dog parks are slowly opening back up, I think all three of us have a new appreciation for these little social outings!

Morgan Molitor CONSTRUCTION2STYLE

While we’ve been feeling a little stir crazy and cooped up at home, we have to admit it’s felt good to get ahead at home and learn a few new things! We’ve been having every meal together as a family, which we haven’t done ... well, I don’t think ever. Which has led to some interesting and insightful conversations with our 5-year-old and 3-year-old. Getting to know them and their heart on a deeper level has been life changing and something (at least for dinner anyways) we will make more of a commitment to do. This also means we’ve been cooking up new recipes and teaching them to our kids.

And after a year of living with our living room under construction, we FINISHED! This has made for a lot more family movie nights and book reading together cuddled up on the couch. So, although we’re ready to get out of the house, we are very thankful for the new habits we’ve created as a family and will carry into the new chaos of this next chapter of life.

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HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

Greg Feda SELECT SURFACES

What do I do when going out isn’t a major option ... cook! My wife and I have taken up a low carb/keto-like lifestyle, and we are loving it! So many options in today’s world and most grocery stores are on board with ingredients. Pictured is a lemon bar that is possibly my new favorite dessert. Would have shown you an actual serving size, but this was all that remained! Yes, the picture was taken on a beautiful piece of quartz!

I’ve also taken up smoking meats on my Traeger Smoker and love it!

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59

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James Hardie Building Products................................Inside Front Cover

HOUSING FIRST MINNESOTA | JULY-SEPTEMBER 2020

RMC Solutions, LLC............................................................................ 57 Scherer Bros. Lumber Co................................................................... 26 Schwieters Companies, Inc.................................................................31 Speedway/WEX.................................................................................60 The Resultants................................................................................... 53

Today, it’s about bringing families closer together.

In-Focus Systems understands and listens to what is important, and then we make it fun and easy.

Let us put the FUN in your new home!

Both customer experience showrooms are now open.

Come experience FUN in South St. Paul and St. Louis Park!

3305 Republic Ave, St Louis Park, MN 55426 │ 952.929.0000 │ 101 Bridgepoint Way #130, South St Paul, MN 55075

Photos © Colin Jewall Photo Studios, Inc.

I © 2020 Kolbe & Kolbe Millwork Co., Inc.

Kolbe Windows & Doors leads the industry with innovative products that push the boundaries and defy the limits of function, performance and style. The clean lines of Kolbe’s VistaLuxe® Collection offer a streamlined, contemporary look, for maximum views with minimal interruptions.

7545 Washington Ave. S | Edina, MN kolbegallerytwincities.com I 866.460.4403

From planning through installation, contact the experts at Kolbe Gallery Twin Cities for various resources to help bring your vision to life. Our extensive showroom and expert staff will help you specify the right Kolbe products for your next project.