The Digest | Jul-Sep 2021 by Housing First Minnesota

Digest T H E

JULY–SEPTEMBER 2021

Member Bash

Celebrating our membership

BUILDING MILESTONES

BUSINESS TIPS

ADVOCACY IN ACTION

10 Years of Minnesota’s Green Path

Recruiting in 2021

Driving the Housing Policy Debate

TWIN CITIES, MN PERMIT NO. 27734

PAID

PRSRT STD U.S. POSTAGE

DREAM BIG.

We all have dreams - dreams of making a difference in the world, challenging ourselves, achieving more and forging relationships on the job and in our lives. Here at Lyman Lumber, our goal is to be the best while being committed to helping our employees make their dreams come true. Lyman provides endless opportunities for growth. The company is built on excellence – in the services and supplies we provide to our customers, our working environment and the opportunities we provide to our employees. If you are a self-starter, with an entrepreneurial spirit, and are looking for a challenging career with endless opportunities for growth, consider joining the team at Lyman Lumber and our affiliated companies. The rewards go above and beyond great wages, benefits, and career paths. Build your dream – and make a difference in the world.

LOOKING FOR A CAREER YOU CAN BUILD ON?

Explore opportunities today at www.lymanlumber.com/careers

Contents APR IL– J UNE 2 0 21

HOUSING FIRST

From the President

President Todd Polifka discusses the ways our industry can come together, interact, and build trust

UP NEXT

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

13 Advocacy in Action

Housing First Minnesota drives the housing policy debate

17 Industry Data

The disappearing starter home and the housing shortage

BUSINESS TIPS

19 Q+A: Ask the Membership Team

Our most commonly asked questions about membership

22 A Decade of Minnesota’s Green Path

For 10 years, Minnesota’s Green Path program has been certifying newly built homes across the state

24 Fanning the Flames

Learn about the trends, technology, and beneﬁts behind outdoor ﬁre features

29 Trouble in Recruiting Paradise Position your company at the front of the line for qualiﬁed workers

26 JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

Digest T H E

Board of Directors EXECUTIVE BOARD PRESIDENT TODD POLIFKA, Custom One Homes VICE PRESIDENT JAMES JULKOWSKI, Julkowski, Inc. TREASURER JOHN QUINLIVAN, Gordon James Construction, Inc. ASSOCIATE VICE PRESIDENT RYAN RUTZICK, All, Inc. SECRETARY SUNNY BOWMAN, Dakota County Lumber Company IMMEDIATE PAST PRESIDENT GARY KRAEMER, John Kraemer & Sons, Inc. PAST ASSOCIATE VICE PRESIDENT ED ENGELBRECHT, Pella Windows & Doors BOARD + COMMITTEE CHAIRS ADVOCACY CHAIR TONY WIENER, Cardinal Homebuilders, Inc. AMBASSADOR CHAIR DALE LOEFFLER, Marvin ARTISAN HOME TOUR CHAIR JOHN KRAEMER, John Kraemer & Sons, Inc. LARGE VOLUME BUILDERS COMMITTEE JAMIE THARP, Pulte Homes of Minnesota, LLC PARADE OF HOMES CHAIR SARAH DULONG, Ron Clark Construction

ON THE COVER: THIS YEAR’S MEMBER BASH WAS ALL ABOUT CELEBRATING OUR MEMBERS. IT WAS A GREAT DAY OF FOOD, FRIENDS, AND LIBATIONS.

PAST PRESIDENTS’ ADVISORY COUNCIL SHAWN NELSON, New Spaces REMODELERS CHAIR SAMANTHA GROSE, Oak and Arrow Homes SMALL VOLUME BUILDERS CHAIR ART PRATT, Pratt Homes MEMBER AT-LARGE TIM FOHR, Lennar

Staff EXECUTIVE LEADERSHIP EXECUTIVE DIRECTOR DAVID SIEGEL

BUILDING FUTURES

33 Building Hope & Rebuilding Lives

Our Foundation complete its fifth Housing for Heroes home

FINANCE & OPER ATIONS VICE PRESIDENT OF FINANCE JANICE MEYER FINANCE DIRECTOR TAMMI HALL MEMBERSHIP + EVENTS

34 The Art of Luxury

Builders share how they got into homebuilding, and why they love giving back through the Artisan Home Tour and Parade of Homes Dream Home program

42 Havana Nights Foundation Gala

Support the Housing First Minnesota Foundation at the annual fundraising gala

MEMBERS O N LY

44 Member Spotlight: Award Winners Congratulations to the recipients of our Spring Reggie and Trillium Awards

50 In the Media

VICE PRESIDENT OF MEMBERSHIP & EVENTS NICOLE COON 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 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 CREATIVE DIRECTOR HANNAH SWAN

52 Member News & New Members

EDITOR & SOCIAL MEDIA MANAGER LAURA BURT

53 Photo Gallery: Member Bash

CREATIVE SERVICES & TECH COORDINATOR CASEY SCOZZARI

56 Elite Sponsors

FOUNDATION

57 Member Discounts

FOUNDATION MARKETING & EVENTS MANAGER ERIN MILBURN

58 5 Association Benefits

ADVERTISING & SPONSORSHIP FULFILLMENT COORDINATOR LAURIE SPARTZ DIGITAL GRAPHIC DESIGNER EMILY DOHENY

FOUNDATION DIRECTOR DONNIE BROWN

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

Executive Director David Siegel shares five unique benefits you should check out

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.

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

OUR SERVICE GUARANTEES On-time estimates on the agreed upon date

Quality Building Materials & Exceptional Services

Pick up of returns within 24 hours of request Delivery of your confirmed orders on the same day Warranty claims to vendors initiated within 24 hours of request

Quality Building Materials & Exceptional Services

WALL PANELS

CABINETS & COUNTERTOPS

Get a Quote Today! Get a Quote Today! www.abc-clc.com www.abc-clc.com Proudly Supplying Proudly Supplying

WINDOWS & DOORS

COMMERCIAL SERVICES

FROM THE PRESIDENT

Housing First Minnesota Enhances the Speed of Trust Housing First Minnesota is the glue that binds our industry together. It does this by presenting a unifying core purpose and vision. Our purpose is to provide the opportunity for homeownership for everyone, everywhere in Minnesota, and the vision is to be as vital in government and politics as we are to Minnesota’s economy. Purpose and vision unify the industry. In addition, through the association, vital industry relationships are created and trust grows. Steven M.R. Covey, author of The Speed of Trust, shares why the establishment of trust is so vital.

“Think about it this way,” he writes. “When trust is low, in a company or in a relationship, it places a hidden ‘tax’ on every transaction: every communication, every interaction, every strategy, every decision is taxed, bringing speed down and sending costs up. My experience is that signiﬁcant distrust doubles the cost of doing business and triples the time it takes to get things done.” By contrast, Covey writes, “individuals and organizations that have earned and operate with high trust experience the opposite of a tax—a ‘dividend’ that is like a performance multiplier, enabling them to succeed in their communications, interactions, and decisions, and to move with incredible speed. A recent Watson Wyatt study showed that high trust companies outperform low trust companies by nearly 300%!”

With Covey’s data, we begin to understand the power of trust and what it costs when trust fails to form or is broken. Housing First Minnesota provides so many ways in which members of our industry can come together, interact, and build trust. Covey suggests that high-trust organizations enjoy the following seven dividends:

Minnesota creates. Whether you serve on a committee, enter the awards, participate in a home tour, engage in one of our charitable projects, or attend the many association events we provide, the opportunity is there to create trust between members so that the industry broadly and each individual member company can enhance their business. But in order for all of this to work, you must become engaged. You must take advantage of the opportunities the association provides. Simply put, you must show up. So, let’s all collectively make that a goal as we enter the second half of 2021, and we can all enjoy the beneﬁts that come with the speed of trust.

1) Increased value 2) Accelerated growth 3) Enhanced innovation 4) Improved collaboration 5) Stronger partnering 6) Better execution 7) Heightened loyalty As your association president, I’ve seen ﬁrst-hand the relationships that involvement with Housing First

TODD POLIFKA 2021 HOUSING FIRST MINNESOTA PRESIDENT

Health has never been more front of mind. Offer your employees a powerful, industry-backed health insurance program at amazing rates.

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

ENROLL NOW

LEARN MORE AT HOUSINGFIRSTMN.ORG

PELLA RESERVE CONTEMPORARY ®

SIMPLE AND SOPHIS TIC ATED

CONTEMPOR ARY WINDOWS AND DOORS CRE ATED FOR YOUR VISION.

DESIGNS THAT EMBODY THE TENETS OF PURE , CONTEMPOR ARY S T YLE .

For your projec ts that deser ve nothing less than ex traordinar y, choose the contemporar y st yle of Pella Reser ve. Our authentic designs provide uncompromised at tention to detail with expansive glass, sleek, minimal proﬁles and through-stile construc tion. Of fering vir tually unlimited customization with corner units, push-out casements and special shapes. Par tner with Pella to achieve your unique vision without concessions. Pella Reser ve designs integrate seamlessly into your projec t with high-per formance produc ts and custom sizes and capabilities.

COVERED BY THE BES T LIMITED LIFE TIME WARR ANT Y FOR WOOD WINDOWS & PATIO DOORS. *

Based on comparing written limited warranties of leading national wood window and wood patio door brands. See Pella written Limited Warranty for details, including exceptions and limitations, at pella.com/warranty, or contact Pella Customer Service. 3

Pella Window & Door Showrooms Plymouth | 13810 24th Avenue North, Ste. 430 | 952-915-6080 Woodbury | 7730 Hudson Road, Ste. 40 | 651-704-9939

UP NEXT

Events UPCOMING

GOLF FOURSOMES ARE SOLD OUT. DINNER ONLY AVAILABLE.

Golf Open It’s time to tee off! Join us for a fun afternoon on the course. The annual Golf Open features games, giveaways, prizes, great food, and networking. Connect and mingle with industry partners before and after the shotguns and while on the course. All skill levels are welcome!

SPONSORSHIPS AVAILABLE.

HousingFirstMN.org/ events

August 5, 2021

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.

FoundationGala.org Contract Interiors, Inc. Floor Covering Specialists

August 7, 2021

KickStart

Join us for KickStart, our member event built to help you make the most out of your membership. Meet the Housing First Minnesota staff, mingle with other members, and get your questions answered. Members old and new are welcome to attend. August 11; October 5, 2021

Housing First Minnesota Foundation

gust 7, 2021

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

HousingFirstMN.org/ events

FIND THE ENTIRE 2021 EVENT CALENDAR & REGISTER ONLINE AT

HOUSINGFIRSTMN.ORG/EVENTS

Foundation Building Futures Golf Classic

GOLF FOURSOMES ARE SOLD OUT.

Sponsor to end homelessness! Our Foundation’s golf scramble is a fundraising event to support our work building housing for Minnesotans experiencing homelessness. Foursomes are sold out, but there are still sponsorship opportunities available!

SPONSORSHIPS AVAILABLE.

HousingFirstMN Foundation.org

September 14, 2021

Fall Parade of Homes

SEE HOMES AT

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

ParadeofHomes.org

September 11-October 3, 2021

Fall Remodelers Showcase

SEE HOMES AT

Remodelers often tell us they get 50% or more of their annual leads by participating in the Remodelers Showcase. See remodeled homes open all across the Twin Cities for three days from noon-6 p.m.

ParadeofHomes.org

October 1-3, 2021

Clay Shoot

Don’t miss your shot to enjoy an afternoon of fun and network in a unique way! Sign up as an individual or bring your crew and form a team for an afternoon on the range. Don’t miss out—this event typically sells out quickly.

HousingFirstMN.org/ events

October 7, 2021

BIG Night

Celebrate the industry in a big way! The Building Industry Gala (BIG) Night is an evening to celebrate all the incredible work of the industry and honor our award winners, including our Reggie, ROMA, Trillium, and other Housing First Minnesota award recipients.

HousingFirstMN.org/ events

October 29, 2021

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

UP NEXT

Need to Know

Online Contractor University Classes Earn your continuing education credits through Contractor University’s online courses. With more than 20 courses available, you’ll ﬁnd specialized classes that provide useful and practical knowledge to apply to your business. ONLINE COURSES ARE AVAILABLE YEAR-ROUND AT

ContractorU.com

SPONSORED BY

Call for Instructors

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

Homeownership is all of it Passionate about ﬁxing the problems of housing affordability and inventory? Subscribe to our Homeownership is all of it newsletter to stay informed of the latest news related to the ﬁght for homeownership for everyone, everywhere in Minnesota. SUBSCRIBE AT

HomeownershipMN.org

FIND REQUIREMENTS AND SUBMIT YOUR APPLICATION ONLINE AT

HousingFirstMN.org/instructors

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

COMMITTED TO BUILDING GREEN.

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

Green Path Designated Builder

Aug. 6: Rising Star Materials Due

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

MNGreenPath.org

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

Aug. 6: Builder, Remodeler, Associate of the Year Evaluations Close Aug. 27: Fall Trillium Entry Due

SPONSORED BY

DETAILS AT

HousingFirstMN.org/Awards

Your Vision Starts Here

Envision your custom design with best-in-class products at our Marvin Design Gallery: a window and door showroom by Shaw/Stewart Your exclusive resource

Everything you need

Imagine the possibilities as you tour the area’s

Leverage the Gallery’s in-house design

only product showroom of its kind. Created

center as you further select everything

by Shaw/Stewart in partnership with Marvin

from decorative hardware to shutters and

Windows and Doors, our showroom engages

column wraps; brackets to corbels; and

visitors with 65 Marvin Window and Door displays

doors to moulding and trim options. We

in varying home styles. We make it simple.

handle every detail.

Building materials & millwork solutions for construction professionals since 1886.

645 Johnson Street NE, Minneapolis, MN 55413 612-378-1520 | www.shawstewart.com/marvin-design-gallery/

UP NEXT

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

HousingFirstMN.org/Podcast

Fall Parade of Homes & Remodelers Showcase The Fall Parade of Homes kicks off September 11. This season, we introduced an all-new entry type for builders with ﬂoor plans that are ready to build on an open lot. These new ready-to-build entries give consumers a full look at the inventory options available for future builds and receive Parade of Homes directional signs to drive consumer traffic to an on- or off-site sales center. Parade of Homes: September 11-October 3, 2021

PARADE OF HOMES SPONSORS

Remodelers Showcase: October 1-3, 2021

REMODELERS SHOWCASE SPONSOR

Home is a first chapter. Home is where people grow and create their own story. Yet, first-time homebuyers are being priced out of our housing market at a record pace. We must address our housing crisis so that all Minnesotans have the opportunity to write their own first chapter.

Homeownership is all of it. HomeownershipMN.org

The Digest

HOUSING PRESENTED BY

FIND HOME TOUR INFORMATION AT

HousingFirstMN.org/HomeTours

[ LET ’ S TA L K ]

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

YOUR PROVIDER FOR TURNKEY FRAMING SOLUTIONS TRUSSES

WALL & FLOOR PANELS

LOOSE LUMBER PACKAGES

EWP PACKAGES

ONSITE INSTALLATION

AUTOMATION TECHNOLOGY

STATE OF THE ART EQUIPMENT

FOR MORE INFORMATION WWW.JLSCHWIETERS.COM 651-762-1110

JL SCHWIETERS CONSTRUCTION 13925 FENWAY BLVD N HUGO, MN 5503

Higher Rebates for

Today’s builders understand the importance of building an energy-efficient home. But no matter how energyefficient your High Efficiency Home is, without natural gas water heating, you’re limited to only a $500 rebate. ®

Open the door to rebates of up to $5,000* when you upgrade to natural gas water heating. A higher rebate for you and more comfort for your customers! To learn more, visit CenterPointEnergy.com/HighEfficiencyHomes or contact Jake Schwietering at 612-321-4386.

Unlock the door to higher rebates

*Rebate amounts are based on the total percentage gas savings achieved over the program baseline.

ADVOCACY IN ACTION

Housing First Minnesota Drives the Housing Policy Debate For the past few decades, housing policy discussions were prioritized lower than many others at the Capitol, making affordability and homeownership initiatives especially challenging. Exceptions to this rule existed on items like indoor sprinkler mandates and home warranty law issues, but for the most part housing policy operated on the edges of the state Capitol’s workload. Fast forward to 2021, and we’ve seen a remarkable emergence in housing as a top-tier priority. Housing First Minnesota and its members have been among the leaders in convincing legislators that it is critical to prioritize housing policy. In the 2021 session, this change was evident. • A dedicated committee to housing policy and finance in the Minnesota Senate was created. The Senate Housing Finance and Policy Committee has brought homeownership access to the forefront by holding hearings and processing bills on items relating to

permitting, zoning, and the use of Planned Unit Developments (PUD) for housing projects. • Related to this committee work, Housing First Minnesota’s priorities on zoning and PUD modernization have advanced to the final stages of the legislative session. This milestone is critical for the homeownership movement, and it positions Housing First Minnesota and its membership a step closer to impacting positive change for Minnesotans seeking to own a home. • On the opposite side of the ledger, policies that would add thousands of dollars to the cost of housing were looked at through a new lens. These policies include infrastructure fees, carpet stewardship, park dedication fees, and green mandates. Housing First Minnesota has closely worked with stakeholders and legislators in opposition to these proposals. • Housing Day at the Capitol, a joint event hosted by the Minnesota Realtors® and Housing First Minnesota, continues its elevation

as one of the top industry events at the Capitol. Despite COVID-19 restrictions, the event moved forward virtually with hundreds of registered attendees who spread our message of housing inventory concerns and the importance of homeownership access.

Session in Overtime As one of just two divided legislatures in the country, Minnesota has once again found itself in a legislative stalemate. This has led to another special session where the legislature must work in overtime to reconcile differences in spending and policy bills. Housing First Minnesota has several industrysupported priorities in the balance, including zoning, PUD, and building code policy items. There are also industryopposed items under consideration, including a special park dedication fee authority for the city of Rochester. Look for a complete review of the 2021 legislature in the next Digest update.

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

ADVOCACY IN ACTION

ADVOCACY UPDATE

Leading on Lead Paint Rule The Minnesota Department of Health (MDH) continues its push to take local custody of the EPA’s Lead Renovation, Repair, and Painting (RRP) Rule. Under the proposal, the RRP Rule would be similar, but more stringent than the EPA’s rule, with MDH charged with enforcement of the local rule. In late May, Housing First Minnesota sent a letter to MDH seeking a stakeholder meeting, an overview of the state’s enforcement plan, and other information that the state has failed to provide. The Minnesota

Electrical Code Challenge Heard In late April, the Minnesota Court of Appeals held a hearing via Zoom in Housing First Minnesota’s challenge to the adoption of the 2020 National Electrical Code (NEC) by the state’s Board of Electricity. At issue is whether or not the Board of Electricity followed state law in its adoption of the 2020 NEC.

The Digest

If the Court of Appeals sides with Housing First Minnesota, the entirety of the 2020 NEC could be thrown out. Member firm Minnesota Construction Law Services is representing Housing First Minnesota on the legal challenge to the Board of Electricity’s rulemaking process. A decision is expected by late July.

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

Realtors® and the Central Minnesota Builders Association cosigned the Housing First Minnesota letter. Although the rule is still in draft form, Housing First Minnesota’s efforts have directly led to a moderation in the rule presented by MDH. In earlier drafts from 2017, MDH took a lead abatement approach that would have caused a massive spike in remodeling costs. Today, the draft RRP Rule is more closely aligned to the EPA’s RRP Rule.

Increasing Building Permit Surplus Transparency Earlier this year, the Minnesota Department of Labor and Industry (DLI) released its new annual report format for the forms local governments use to disclose their building permit finances. The new format requires local governments to disclose greater detail on what is included in their building permit expenditures, including

staff costs, transportation, office space, supplies, and overhead calculations. The added transparency stems from the Housing Affordability Institute’s reports on the massive municipal surplus generated from building permits and a bill in 2020 that would have required DLI to make a similar change.

Land Development Project Reviews Could be New Housing Roadblock The Minnesota Environmental Quality Board is seeking a change in the review process for land projects to consider climate change impacts, including for residential subdivisions. In both a letter and in a meeting with the board staff, Housing First Minnesota explained that our builders are experts in energyefficient construction and considered the best in the county. Staff also explained that the proposal fails to consider

this ranking, nor does it address the state’s housing crisis. The proposal includes a back door for local governments to increase lot costs by demanding carbon offsets to new development, despite no requirement existing in Minnesota. Housing First Minnesota expressed its deep reservations with the proposal and noted such arbitrary requirements are one of the reasons why land costs in Minnesota far exceed that of similar Midwest markets.

FOLLOW OUR ADVOCACY EFFORTS ON TWITTER FOR THE LATEST UPDATES

@HFMNADVOCACY

FOLLOW OUR ADVOCACY EFFORTS ON TWITTER FOR THE LASTEST UPDATES

@HFMNADVOCACY

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

INDUSTRY D ATA

BY THE NUMBERS

The Disappearing Starter Home and the Housing Shortage A recent report from Freddie Mac estimates that our housing shortage is climbing, and the lack of newly built starter homes is directly to blame. Freddie Mac estimates that as of the fourth quarter of 2020 the United States is short 3.8 million homes. That’s up from a shortage of 2.5 million U.S. homes in 2018. According to Freddie Mac’s report, the decline in entry-level supply is even more pronounced than the overall shortage. The share of new entry-level homes compared to overall construction declined from 40% of homes built in the early 1980s to just 7% of all homes built in 2019. As the homebuilding industry knows, there are dozens of barriers that have been limiting the construction of new entrylevel homes: lack of available construction labor, land use regulations, zoning restrictions preventing supply from picking up in areas which have the most demand, NIMBYism (not in my backyard), and land supply. Plus, the most recent barrier, increasing raw material costs, especially stemming from the pandemic with lumber prices climbing by more than 150%. According to the Minneapolis Area REALTORS® April housing inventory report, there were just 5,619 homes for sale in the Twin Cities. With the current low mortgage rates, the continued demand from the largest demographic in the U.S. being at peak homebuying ages, the housing shortage will continue and grow into the near future.

April Inventory of Homes for Sale

want more Market data? SEE THE LATEST HOT SHEET AT BLOG.HOUSINGFIRSTMN.ORG

10,534

10,362

5,619

2019

2020

2021

SPONSORED BY

SOURCE: MINNEAPOLIS AREA REALTORS®

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

MAKE THE MOST OF HOME

Giosa Freestanding Tub

YOUR LOCAL SHOWROOMS: OAKDALE | GOLDEN VALLEY

Shop online or schedule a personalized appointment from the comfort of your home today at fergusonshowrooms.com.

Q+A

Ask the

Membership Team with Nicole Coon, Vice President of Membership & Events Christopher Hagness, Membership Manager Kim Carter, Membership & Events Coordinator When people join Housing First Minnesota or become more seasoned members, we’re often asked, “How can I get the most out of my membership?” Housing First Minnesota is here to serve and put you in the best position for your future, whether it’s advocating, educating, or providing opportunities for networking. Here, we’ve pulled together some of our most commonly asked questions about membership. We hope you get some ideas, or can reinforce what you are already implementing, to get the most out of your membership!

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

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

Q+A

Q. How can I take advantage of networking opportunities with the association? NICOLE: Making connections is at the top of the list for many members when they join. We host many different events that are as casual as a happy hour to the more formal BIG Night—and everything in between. We have an opportunity for every interest group. These events bring together a wide variety of people and businesses in one room. It really is as simple as showing up! And when you do, be prepared with business cards as you are sure to meet some new people. The best way to build strong relationships is to get involved. We have many different committees and task forces (that range from a minimal commitment to high involvement) of member representatives to create the best events and help steer the efforts of our advocacy team. This is a great way to meet and network with members.

Q. How do I leverage my membership to reach the most people? CHRIS: This is where you take your networking strategy to the next level. In addition to our annual printed member directory and online directory search, member lists are available for you to create your own direct mail campaign, making it easier for you to get to the right people at a very affordable rate. We also offer a myriad of advertising and sponsorship opportunities, both digital and print, which can really expand your coverage to consumers and business partners. Kori and Brad Meewes are strategic with partnership recommendations to make the most of your marketing dollars and help you get in front of the right audience.

How does my team get engaged with Housing First Minnesota?

Q. How is my membership supporting the housing industry?

KIM: Simply put, sign up to receive the broad spectrum of digital and print publications we put together each year. From our e-newsletters to Housing Industry News to our consumer guidebooks, these publications will keep your team up to date on the state of the industry and help you put the best image of your company forward to your customer. The Hot Sheet is a monthly look at the housing market, featuring the latest industry data, and is our most-viewed digital communication. While all of our publications serve a different purpose, your staff has access to all of it.

CHRIS: Housing First Minnesota works at the state and local government levels so you can focus on what you are best at. Our advocacy team works diligently on your behalf to ensure our homeowners can get a safe home at a price they can afford, that fits their needs and lifestyle. We work to protect you and your bottom line while you are building, remodeling, or supporting these efforts. While permitting and codes are an important part of any government, we advocate on behalf of the housing industry to make sure it is reasonable and necessary so you can operate effectively and provide the opportunity for homeownership for everyone.

When your company is a member of Housing First Minnesota, your entire staff benefits. This means everyone can stay up to date on all of the things that membership brings to the table. Employees can subscribe to our suite of communications at any time—reach out to the membership team and we can send you a link specific to your company to have your colleagues create their own profile and start receiving digital communications. This will allow your staff to stay up to date on industry news and legislation, as well as networking opportunities. Plus, there is a calendar of events online for you to save the date and updates on registration.

Q. How is Housing First Minnesota helping others? NICOLE: You want to help others, so do we. Your membership helps support the efforts of the Housing First Minnesota Foundation. Over the past 25 years, this support from our membership has resulted in 57 completed community builds that have provided over 180 shelter beds in the community! The Foundation has also provided over $100,000 in scholarships to provide educational opportunities and training for tomorrow’s workforce in the construction industry. As a member you can volunteer for the Foundation’s committees or support its events and fundraisers through donations. The Foundation also has a golf tournament and an annual Gala for members to come and support the efforts. These events are a great way to give back and meet others in the community while helping make homeownership a reality for people that may otherwise never have the opportunity!

Housing First Minnesota is here to serve and put you in the best position for your future, whether it’s advocating, educating, or providing opportunities for networking. 20

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

Q+A

Meet the Membership Team Meet the team behind membership here at Housing First Minnesota. And, as always, don’t hesitate to reach out to any of these staff members for more information on how to get involved.

CHRISTOPHER HAGNESS MEMBERSHIP MANAGER CHRISTOPHER@HOUSINGFIRSTMN.ORG 651-697-7573

We’re excited to welcome Christopher Hagness as our membership manager. Christopher started with Housing First Minnesota in April and will focus on membership recruitment, development, and implementing new programs and procedures to achieve membership goals. In addition, Christopher will work with referrals (send your nonmember industry partners to him!), work with the rest of the membership team on retention, and he will be involved with the Ambassador Committee. Christopher has been in sales for over 15 years covering auto, post frame, and most recently worked in land acquisition for a Minnesota solar developer. Christopher holds a bachelor’s degree in business management from the University of Wisconsin – La Crosse. Although Christopher resides in Spring Park, you’ll most likely ﬁnd him on a lake or river, or in the woods on an expedition for the next catch or wild game depending on the season. Christopher also enjoys giving back as an outdoor enthusiast by serving on the board for the Midwest Wild Sheep Foundation.

KIM CARTER

NICOLE COON, CMP

MEMBERSHIP & EVENTS COORDINATOR KIM@HOUSINGFIRSTMN.ORG 651-697-7570

VICE PRESIDENT OF MEMBERSHIP & EVENTS NICOLE@HOUSINGFIRSTMN.ORG 651-697-7571

We are pleased to welcome Kim Carter to our staff as our membership and events coordinator. Kim joined Housing First Minnesota in December 2020 and assisted both (you guessed it) membership and events. On the membership side of things, Kim helps with retention, renewals, and invoicing; answers general questions from the membership; preps for trade shows; and manages membership records. On the events side, Kim assists with registration, logistics, sponsorship fulﬁllment, and our award programs. Kim will assist with several event planning committees and the Ambassador Committee. Kim joined the team with association experience with 16 years at the Twin Cities Wedding Association. She was involved in all their operations: administration, business, marketing, and trade show production/management. Kim currently resides in Blaine with her dog, Scout. In her free time, she enjoys working out, biking, golﬁng, breweries, and enjoying the outdoors.

Nicole Coon is a long-time staffer of Housing First Minnesota, joining the team back in 2010. Nicole has held a variety of positions at Housing First Minnesota, from reception to education and awards to marketing, and most recently as our meeting and event planner. Her experience across so many areas of the association will be well served in the membership arena. Overseeing both membership and events, Nicole will continue to plan a majority of the B2B events and welcomes engaging with both long-standing and new members. Nicole has long been a part of the housing industry, with past experience in foreclosures, real estate, and mortgages. Nicole loves being a homeowner in Roseville. In her spare time, she enjoys being a servant leader and has been on the board of directors for MPI Minnesota Chapter for ﬁve years. She also enjoys DIYing the never-ending home improvement projects, painting, softball, golf, and lots of walks with Hazel, her rescue pup and foster fail.

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

BUSINESS TIPS

SPONSORED BY

A DECADE OF

Minnesota’s Green Path For 10 years, Minnesota’s Green Path program has been certifying newly built homes across the state. Created by Housing First Minnesota in 2011, Minnesota’s Green Path is the leading energy efficiency and green building program for the residential construction industry in Minnesota. The program was designed to appeal across a broad market by providing transparency and independent verification. It also offers certification for improved energy efficiency and home performance. “For a decade we’ve been working to highlight Minnesota’s leadership in energy-efficient homes through our Green Path program,” said David Siegel, executive director of Housing First Minnesota. “We’re proud to see our builders embrace sustainable building

The Digest

practices and incorporate construction techniques, materials, and designs intended to provide maximum home comfort while conserving energy and minimizing a home’s impact on the environment.” Minnesota’s Green Path provides builders and consumers with Home Performance Reports (HPRs) that highlight a home’s RESNET Home Energy Rating System (HERS) index and air exchange measurement. The lower the HERS index, the more energy-efficient the home. The program has now provided HPRs to more than 29,000 new homes. These HPRs are the heart of the program,

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

providing homebuyers with test results from independent, third-party RESNET raters in an easy-to-understand and compare format. “That’s the value of that Home Performance Report—it’s not us just telling our homeowners about how the insulation is or what the HERS index is, we actually have a physical piece of paper or a physical example to say here is proof of what we’ve done as a builder,” said Carole Griffith, vice president of sales and marketing for Robert Thomas Homes and chair of the Minnesota Green Path program, on a recent podcast. “That third-party verification and the Home Performance Reports are, I think, really the key.”

Minnesota’s Green Path Designation Levels

Program Growth

Minnesota’s Green Path offers three certification levels, with Advanced and Master levels requiring elevated efforts in all five green building aspects (energy efficiency, environmental quality, water management, resource management, and site/development). These levels were created to allow builders to help their buyers choose exactly the level of energy efficiency that fits their philosophy and their budget.

GREEN PATH ENERGY TESTED HOMES

Energy Tested: This is the base level of Minnesota’s Green Path. These homes have been tested and rated by a thirdparty, independent RESNET Rater, are built to Minnesota’s energy code, receive a HERS index, and are issued an HPR that allows consumers to better understand the home’s efficiency.

290+ 11

Advanced Certified: This mid-level green certification means a home has met a minimal energy testing standard, plus includes additional green features. These homes are tested and rated by a third-party, independent RESNET Rater and receive a HERS index of less than 47. These homes are built to Minnesota’s energy code, plus meet: • 5 points in energy efficiency • 5 points in indoor environmental quality • 5 total points from water conservation, resource management, or site development • 5 total points from any of the five categories

Master Certified: This top-level green certification means a home has met a high energy testing standard, plus includes additional green features. These homes are tested and rated by a thirdparty, independent RESNET Rater and receive a HERS index of less than 45. These homes are built to Minnesota’s energy code, plus meet: • 10 points in energy efficiency • 10 points in indoor environmental quality • 10 points in water conservation • 10 total points in resource management • 10 total points in site development

When Green Path launched in 2011, 11 homes on the Parade of Homes fall tour were Green Path Energy Tested. Today, more than 290 homes on the spring tour were Green Path Energy Tested. This year, Green Path will certify its 30,000th home.

SPRING 2021 TOUR

FALL 2011 TOUR

In addition to issuing HPRs at three certification levels, the Green Path program expanded by launching the Green Path Building Conference in 2015, a half-day educational conference where attendees learn about the latest energy-efficient building techniques. And in 2019, the program began offering the Designated Green Path Builder program to industry leaders in energy-efficient residential home construction. Designated Green Path Builders commit to test at least 75% of their homes and attend required professional development. Currently, 40 builders have earned this designation. Minnesota’s Green Path has grown through the support of homebuilders throughout the state who were eager to show their commitment to creating a sustainable program that leads the country in energy efficiency, all while balancing affordability for homebuyers across the state. “I think ultimately, not only is it benefiting our customers as a whole, but we’re also doing the right thing,” said Griffith. “We’re doing the right thing for environment, for our community, and our homeowners get to see the long-term benefits of that.”

This year, Green Path will certify its 30,000th home.

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

BUSINESS TIPS

Fanning the Flames Learn about the trends, technology, and benefits behind outdoor fire features—summer’s hottest (literally) home accessory. by Taylor Hugo

Get ready to grab the s’mores kit. Summer is here and, after a year of staying indoors, outdoor entertaining is back and better than ever before. Maximizing on the “live, work, and play at home” mentality that has become the norm, housing industry professionals agree that outdoor living areas—which prominently feature fireplaces, fire pits, and fire tables—are becoming more popular in new construction and are a must in higher-end custom and luxury homes. “Everyone is doing some sort of fire feature,” says Mitchell Zechmann, the commercial and multifamily sales representative for Fireside Hearth & Home. “It’s about bringing your family and your friends together outside. The big thing with us Minnesotans is that we try to eat up every second of spring, summer, and fall outdoors so we can go hibernate in winter.” Before you start gathering sticks and lighters, here’s what you need to know about the trends, technology, and benefits behind today’s outdoor fire features. 24

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

Gas is the way to go. Zechmann estimates that 99% of the outdoor fire features he installs are gas rather than wood-burning. In addition to the convenience factor of being able to start a fire with the flip of a switch (no more fighting to light wet wood), gas fireplaces don’t produce smoke, meaning you won’t have to worry about that bonfire stench sticking to your clothes and hair.

Safety first. Forget about dumping buckets of water on your fire pit to put out the flames. After you shut off a gas fireplace, you can walk away with peace of mind, knowing that no remnant coals or ashes will spark an unintentional fire. Taking safety one step further, new ignition systems are built to automatically stop the flow of gas if the flame goes out for any reason. JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

BUSINESS TIPS

It’s all about ambiance. Outdoor fireplaces can be used to create a private oasis by strategically blocking views into a neighbor’s backyard, while dual-sided, see-through installations maximize sightlines to the surrounding nature. LED lighting installed around a fire pit or fire table improves visibility at night and adds a “wow” factor for outdoor gatherings.

Customization is key. Just like interiors, homeowners want outdoor fire features to represent their individual style and personality. Concrete is currently the finish of choice, according to Zechmann, but other popular options include brick, stone, and stucco. Fireplace fillers can also be customized with materials like lava tumble rock or ceramic stones for a more organic, natural look, or glass beads for a modern touch.

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

Smart technology. Homeowners can now add their outdoor fireplace to the list of home amenities that can be controlled with their smart devices. Using Bluetooth connectivity, turn flames on and off, and even adjust the flame height and temperature. Whether you prefer the grandeur of a traditional fireplace, or the modern aesthetic of a sleek fire pit or fire table, outdoor fire features offer benefits for both builders and homeowners. Outdoor living spaces set new construction homes and multifamily properties apart from others in the market, appealing to homeowners looking to achieve the warm, cozy atmosphere fire features provide—often at a lower price point than indoor fireplaces, since no venting system is needed. “I see outdoor fire features on every single project,” says Zechmann. “It’s a trend that is growing dramatically, and I don’t think it’s going away.”

Building relationships from the ground up! We understand that in today’s market, success and growth depends on having strong partnerships. At Caliber Home Loans, Inc., we’re committed to the success of our home builders. Contact us today, your Twin Cities Builder team to learn more about how we can help you and your homebuyers. South Metro-1559 Southcross Drive W. Suite 200, Burnsville Brady Mergenthal,

NMLS 400235, 651-324-5431, brady.mergenthal @caliberhomeloans.com

Steve Sickler,

NMLS 400580, 612-255-1259, steven.sickler @caliberhomeloans.com

John Moreton,

NMLS 1848455, 612-867-1647, john.moreton @caliberhomeloans.com

North Metro-10400 Baltimore St. NE Suite 120, Blaine Shelly Farris,

NMLS 367826, 612-839-6918, shelly.farris @caliberhomeloans.com

Rochester-2660 Superior Dr. NW Ryan Manley,

NMLS 516976, 507-398-8384, ryan.manley @caliberhomeloans.com

Gerrie Lee,

NMLS 420435, 612-978-8888, gerrie.lee @caliberhomeonloans.com

Lakes Area-1265 Highway 10 West Unit 8, Detroit Lakes Brooke Ames,

NMLS 1826207, 701-238-8416, brooke.ames @caliberhomeloans.com

Jack Titus,

NMLS 339503, 612-963-4992, jack.titus @caliberhomeloans.com

East Metro-724 Bielenberg Rd. Suite 146, Woodbury Greg Doroff,

NMLS 533092, 651-470-4947, greg.doroff @caliberhomeloans.com

West metro-615 Babcock Blvd. E. Ste. 300, Delano Kevin Jaunich,

NMLS 348636, 612-255-1205, kevin.jaunich @caliberhomeloans.com

Jason Chitwood,

NMLS 642509, 612-814-9818, Jason.chitwood @caliberhomeloans.com

Caliber Home Loans, Inc., 1525 S. Belt Line Rd Coppell, TX 75019 (NMLS #15622). Copyright © 2021. All Rights Reserved. Equal Housing Lender. Intended for real estate and lending professionals only. (42299)

PAVING THE BEST, MOST EFFICIENT, TOP QUALITY ASPHALT SOLUTIONS IN THE TWIN CITIES

PAVING, REPAIRS & SEALCOATING 03 HC_brochure0410.pdf 03 HC_brochure0410.pdf 1 4/10/18 1

03 HC_brochure0410.pdf

4/10/18 5:36 PM

5:36 PM

952.894.9078

4/10/18

5:36 PM

www.jwasphalt.com

info@jwasphalt.com

900 West 128th Street, Suite 205 | Burnsville, MN 55337-2455

Y C

CM M

MY Y

CM CY

MY CMY

CMY

Let usLet help us you helpget youthe get the job done job right and onandtime. on time. Let us helpdone youright get the job done right and on time. Call usCall forus a free for aconsultation free consultation today:today: 952-894-9078 952-894-9078 Call us for a free consultation today: 952-894-9078

ShaunHamill Johnson Shaun Johnson Shaun@HamillConcrete.com Shaun@HamillConcrete.com Tim Info@HamillConcrete.com Shaun Johnson Shaun@HamillConcrete.com 612.366.4247 612.366.4247www.HamillConcrete.com www.HamillConcrete.com 952-894-9078 www.HamillConcrete.com 612.366.4247 www.HamillConcrete.com

YOUYOU are our are #1 ourpriority. #1 priority. YOU are priority. Often foundation Often our foundation plans#1 areplans over-engineered. are over-engineered. As the As the experts, experts, we canplans help we can youhelp findyou opportunities find opportunities Often foundation are over-engineered. Astothesave to save moneywe on money yourhelp on foundation yourfind foundation by givingbyyou giving proper you the proper experts, can you opportunities tothesave engineering engineering to do the to job do right, the job on right, time on and time for and for less. money on your foundation by giving you the properless. engineering to do the job right, on time and for less.

BUSINESS TIPS

Trouble in Recruiting Paradise This is a difficult time for any company looking to add to their teams, which is pretty much every company we talk to. Even before the pandemic, skilled labor markets were especially tight. Now, many builders, like so many other employers, are having trouble finding and keeping people on their staff to do the work. In the current construction market, where the demand is high and the supply is low, builders could be as busy as they want to be. But the real kicker is that in reality, builders are only as busy as they want to be IF they can find and retain the people to do the work. What can you do to position your company at the front of the line for qualified people when they are considering a new job? Strategies and tactics that worked in 2019 likely aren’t getting the results you need in 2021. And, far too often, many companies simply tweak the edges of tactics rather than changing strategies. However, now is the time for change.

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

BUSINESS TIPS

Here are four easy changes that every employer can make to attract the most qualiﬁed workers.

1 Upping your game and being open to executing new tactics will have a significant impact on your recruiting and retention.

HAVE A CLEAR RECRUITING PLAN AND ESTABLISHED TIMELINE

Start by setting a deadline. If your initial recruiting tactics aren’t getting the results you hoped for by that speciﬁed date, move to the next step in your plan. Far too often, employers are too slow to move to more aggressive recruiting strategies. Your plan should start with modest, low-cost methods as well as triggers to know when you need to move to more robust options. A progressive schedule might look like: 1) Internal recruiting on your website and through current employees for two weeks 2) Posting on your preferred recruiting site for two weeks 3) Hiring a staffing ﬁrm

PORTRAY THE RIGHT IMAGE

Do you know what your image as an employer looks like? What do your website and social media posts say to potential employees? Businesses today must ensure their brand is attractive not only to potential customers but future employees as well. Investing in marketing strategies and tactics toward the labor market can pay big dividends. One very important area to keep an eye on is online reviews. Are you monitoring your Google, Facebook, and Glassdoor reviews? Employers who aren’t actively managing their image can quickly be hurt by a single viral review or unanswered negative comment. Identify someone in the company who can check in on these sites to ensure all reviews and comments are being addressed promptly.

4) Engaging a recruiter Whatever your tactics, be quick to move from one level to the next to avoid the high costs of lost opportunities.

KNOW HOW YOU STACK UP TO YOUR COMPETITORS

In a tight labor market, employers who aren’t keeping up with what’s happening with pay and benefits can quickly fall behind. Do you know where your pay and benefits stack up with your competitors? If not, find out. It does not serve any business well for leaders to have their heads in the sand by saying “we can’t afford to change our pay or benefits.” The right employee is worth it.

MAINTAIN YOUR COMPANY’S CULTURE

Is your company’s culture attractive to the people you want to employ? Every organization has a culture, whether it is intentionally designed and actively created or inadvertently allowed. For example, if your organization tolerates bad behavior and poor performance because you feel you can’t afford to lose any employees, a negative culture is allowed that will impact people. The culture always signiﬁcantly impacts recruiting and retention. What does your company value? How are those values brought to life in speciﬁc behaviors of employees that are recognized and rewarded?

Upping your game and being open to executing new tactics will have a signiﬁcant impact on your recruiting and retention. Some of it will take time. Best that you start today!

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

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

WRITTEN BY JERRY OLSON THE RESULTANTS

CC A AM M PP UU SS EEXXPPAANNSSI IOONN IN I NT TRROODDUUCCI N IN GGOO UU R RN N EE WW ES E TS TD D OOO R RM M AN AU N FUAFCATCUTRUI R NIGN G F AFCAI C L I TL Y ITY

FOR M MO OR R EE II N NFFO ORRM MAATTI IOONN OORR TTOO SSCCHHEEDDUUL LE E AA T T OO UU RR , ,C C OO NN TA TA CT C TC A CR A LRYL YS CS H CW HW I EITEETRESR: S : 661122. .666699. .88884444 | | CCAARRLLYY@@S SCCHHWWI EI E TT EE RR SS CC OO MM PP AA NN I EI S E .SC. O CO MM

The Digest

SSCCHHWW E I ET TE ER R SS CC OO MM P 2021 P AA NN I EI S E .SC. O CO MM HOUSING FIRST MINNESOTA | IJULY–SEPTEMBER

BUILDING FUTURES

Building Hope & Rebuilding Lives HOUSING FOR HEROES NORTH MINNEAPOLIS BUILD For many people, homelessness is not a choice. This is why the Housing First Minnesota Foundation continues to build and support transitional housing to help end veteran homelessness, a population of the community that is in growing need of services.

allows them the space and resources to recenter their lives,” said Donnie Brown, Housing First Minnesota Foundation director. “Veteran residents will have everything they need to live on their own and have access to services to support both physical and emotional health to begin their healing process.” This is the fifth home built by the Housing First Minnesota Foundation and build partner Lennar. While in the home, the four veteran residents will work with Minnesota Assistance Council for Veterans (MACV) case managers to overcome their housing, employment, and legal barriers giving veterans the support and confidence to once again find success.

What was once a vacant community garden is now a beautiful residence that is a fully furnished 4-bedroom, 3.5-bathroom, 2,232-square-foot transitional house constructed for individual veterans and veteran families who have experienced hardship and are financially struggling to secure housing. “Our Housing for Heroes community builds provide a safety net for veterans which

Since 2017, the Housing First Minnesota Foundation has built over 14,375 square feet of transitional housing for veterans and has added 18 shelter beds to serve over 41 individuals. Two more Housing for Heroes North Minneapolis builds are scheduled this year.

Support our community builds through donations! Contact Donnie Brown at donnie@housingfirstmn.org or go to housingfirstmnfoundation.org.

Be the difference.

One Housing for Heroes home could serve up to 640 veterans over 50 years.

Family Housing Recovery Rebuild In an early-1900s brick apartment building in Minneapolis, six units in dire need of repair are being gutted and remodeled. The finished units with updated amenities are designed for mothers who are in a chemical dependency treatment program to be able to live in a safe, nurturing, healthy environment with their children during their recovery. Each 700-square-foot unit could serve at least 64 mothers and their children over 20 years. These units will be completed later this year.

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

MEMBER SPOTLIGHT

The Art of Luxury Five high-end builders share how they got into homebuilding, and why they love giving back through the Artisan Home Tour and Parade of Homes Dream Home program. By Taylor Hugo, Builder Photography by Meghan Doll Photography

Every year, the Parade of Homes’ Dream Homes and Artisan Home Tour stun visitors with wowworthy features and unique details that elevate the bar on luxury. But beyond their aesthetic appeal, these homes also benefit the community by raising money for the Housing First Minnesota Foundation. Through entrance fees, the philanthropic branch of Housing First Minnesota is able to build and remodel transitional housing for Minnesotans in need and provide scholarships for students entering the construction industry. Here, five frequent Dream Home and Artisan Home Tour builders share how they got into the luxury homebuilding business, and what being a part of these tours that give back to the community means to them.

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

John Kraemer & Sons, Inc. John Kraemer says his favorite part of working in the luxury homebuilding industry is the uniqueness and challenge it presents. From contemporary, modern homes with flat roofs to traditional architecture that evokes similarities to European castles, every design is different—just like the homeowners who have been seeking out the services of John Kraemer & Sons since the company was first established by Kraemer’s grandfather and father 43 years ago. “Our clients are from all different backgrounds,” says John, who now runs the business with his dad Gary and brother Jeff. “A lot of them are entrepreneurs who started their own companies, so hearing their stories about the struggles and successes of their businesses is like a learning experience almost every day when we come to work.” These homeowners are looking for one-of-a-kind touches when it comes to building their own artisan homes. Think: custom cabinetry and millwork, marble countertops, sport courts, golf simulators, bowling alleys, movie theaters, and pools. In addition to putting these luxurious amenities on display for the public to see and feel in person, John also loves being a part of the Artisan Home Tour for its charitable component. Thanks to tour and other fundraisers that benefit the Housing First Minnesota Foundation, John Kraemer & Sons was recently able to commit to remodel two units at Avivo— which provides housing to those seeking treatment for addiction and mental illness in Minneapolis—in partnership with the Housing First Minnesota Foundation. “We have a passion for helping people out,” John says. “That was always instilled in us by my grandpa and my dad. We’ve been fortunate, so we always try to give back to the community that’s given so much to us. That’s why we do it.”

Gary Kraemer, Jeff Kraemer, & John Kraemer

We have a passion for helping people out. That was always instilled in us by my grandpa and my dad. We’ve been fortunate, so we always try to give back to the community that’s given so much to us. That’s why we do it.”

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

MEMBER SPOTLIGHT

Swanson Homes For Blake Swanson, luxury homebuilding is a family affair. His grandfather started Swanson Homes in the 1960s, and his dad, Curt Swanson, a former president of Housing First Minnesota, was one of the founders of the Artisan Home Tour. When Blake joined the team as vice president of sales in 2016, and his wife Lindsey as creative director in 2017, they were excited for the opportunity to make a meaningful impact on their clients’ lives. “For most people, a home is one of their biggest investments—so much time is spent there, they raise their kids there. I’ll drive by years later, and I feel like I was part of creating something and bringing something to life from nothing,” says Blake. The Swansons think of the Artisan Home Tour as a win-win for everybody: Builders get to show off their creativity, it’s entertaining for tourgoers, and proceeds go toward a good cause. Plus, Blake believes this year’s event could be the best ever, thanks to larger-than-normal client budgets, low interest rates, and homeowners willing to spend a little extra for unique touches. “The lifestyle at home has changed a lot in the last year, whether you’re talking about two offices, more space for the kids, or an in-law suite,” he says. “The layouts people are looking for are evolving as they’re spending a lot more time in their homes.”

Blake and Lindsey Swanson 36

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

The lifestyle at home has changed a lot in the last year, whether you’re talking about two offices, more space for the kids, or an inlaw suite. The layouts people are looking for are evolving as they’re spending a lot more time in their homes.”

763.424.2775 NORTHLANDCABINETS.COM

High-quality, handcrafted cabinetry for every room in any home.

MEMBER SPOTLIGHT

It’s that attention to detail that leaves you with a feeling of, ‘Hey, there’s something different about this house.’”

Sustainable 9 Design + Build Chad Hanson, Ryan Hanson, & Vince Birdsley When Chad Hanson was in the process of building his ﬁrst home, he was frustrated by the lack of builders who specialized in modern design and sustainability. Though he was working in IT at the time, his personal homebuilding experience would later shape the business model of Sustainable 9 Design + Build, the eco-friendly custom home business he launched with his brother, Ryan. “We felt like there was this huge gap in the market with no builders

The Digest

focusing on energy efficiency or sustainability at the core of what they did,” says Chad. In the beginning, the mid-range price point was their bread and butter, but after thousands walked through their ﬁrst Dream Home more than a decade ago, “luxury buyers came out of the woodwork.”

efficient materials and high-quality craftsmanship wrapped in ﬁnishes that are simplistic in form and function—and, of course, some wowworthy touches like two-story glass bridges, ﬁre poles to slide down, 7-foot galley kitchen sinks, and deck railings that double as drink holders.

Today, Chad and Ryan’s clients (and tourgoers who purposefully seek out Sustainable 9’s homes every year) are those looking for energy-

Says Chad, “It’s that attention to detail that leaves you with a feeling of, ‘Hey, there’s something different about this house.’”

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

City Homes, LLC Rebecca Remick jumped headfirst into the building industry at the height of the housing crisis in 2008. She had a background in business and health care administration, but with an interest in entrepreneurship, she started purchasing and flipping houses. Twelve years later, her business has evolved into City Homes, a luxury homebuilder that takes on a limited number of clients every year. Whether she’s working on a Dream Home or Artisan Home Tour stunner, Remick strives to avoid wasted space, infusing each of her homes with unexpected touches. This could mean luxurious amenities like a pizza oven in the kitchen or a custom woodburning fireplace in the living room, but it may also be more subtle, such as a layout different from what you’d see in your typical five-bedroom, five-bathroom home. “I want to create something that people are going to talk about,” she says, “something that somebody is going to walk away from and say, ‘Wow, I’ve never seen that before. What a great idea.’” In addition to highlighting her design chops, the Artisan Home Tour offers Remick an opportunity to show people the importance of women builders. “Women offer a different perspective,” she says. “We appreciate being heard in the design process, and we have an important voice at the table.”

I want to create something that people are going to talk about. Something that somebody is going to walk away from and say, ‘Wow, I’ve never seen that before. What a great idea.’” Rebecca Remick JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

MEMBER SPOTLIGHT

Mark D. Williams Custom Homes, Inc.

Keith Schaehrer, Anne Jansson, Mike Lauwagie, & Mark Williams Mark Williams describes his role as a builder as part orchestra director leading his onsite teams, part sport coach cheering on his clients through the building process, and part marriage counselor, making sure both homeowners are satisﬁed with the ﬁnished product. It’s a careful balancing act Williams has been perfecting since he started as a builder in 2005, though the third-generation family business has had a presence in the Twin Cities for 40-plus years. “At the luxury level, you’re pushing the envelope of what’s new, maybe not even in our market, but something they’re doing in Europe or California that clients here might like,” says Williams, pointing to out-of-the-box ideas like a rock-climbing wall, a panic room, or stealth speakers hidden behind drywall. Williams likes to bring that same level of “dazzle” to tourgoers. On this year’s Artisan Home Tour, a San Francisco–style trolley transported guests from the parking lot to the home, where they were greeted by a jazz musician cranking out tunes and an ice cream vendor. It’s all part of creating an experience, Williams says. “There’s a saying, ‘You often forget what people say, but you never forget how they make you feel.’ The same can be said for houses,” he adds. “You’ll often forget how a house is designed or laid out, but my favorite comment that somebody makes when they come through one of our houses is, ‘Your house feels different. It feels inviting, almost like it has a personality.’”

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

There’s a saying, ‘You often forget what people say, but you never forget how they make you feel.’ The same can be said for houses.”

Roofing Roofing Siding

Siding Windows

Windows

Serving Serving the Professional the Professional Contractor Contractor

Tools

Gutter Tools Accessories Gutter

Accessories

ABC Supply is the largest wholesale distributor of roofing in the United States and one of the largest distributors of siding, windows, select exterior anddistributor interior products. Founded ABC Supply is and the largest wholesale of roofing in the in 1982, ABC currently has than 760 locations nationwide. Specializing United States and one of themore largest distributors of siding, windows, in select and categories, offers and select exterior andproduct interior lines products. Founded inABC 1982, ABCthe professional contractor competitive superior service, and the highest currently has more than 760 locationspricing, nationwide. Specializing quality materials available. in select product linesbuilding and categories, ABC offers the professional contractor competitive pricing, superior service, and the highest Check us outavailable. online at abcsupply.com or visit us in: quality building materials

Serving the Professional Contractor

St Paul - Minneapolis - Coon Rapids - Savage - Maple Plain - Roseville - St Cloud - Rochester - Oronoco - Mankato

Check us out online at abcsupply.com or visit us in:

St Paul - Minneapolis - Coon Rapids - Savage - Maple Plain - Roseville - St Cloud - Rochester - Oronoco - Mankato ABC Supply is the largest wholesale distributor of roofing in the

United States and one of the largest distributors of siding, windows, and select exterior and interior products. Founded in 1982, ABC currently has more than 760 locations nationwide. Specializing in select product lines and categories, ABC offers the professional contractor competitive pricing, superior service, and the highest quality building materials available.

Trust Mike Hoppe, Josh Dalki and Larry Larson with your Construction Insurance. Check us out online at abcsupply.com or visit us in:

St Paul - Minneapolis - Coon Rapids - Savage - Maple Plain - Roseville - St Cloud - Rochester - Oronoco - Mankato

Lower your insurance costs while better protecting your assets. Contact Mike, Josh or Larry today or scan the QR code to learn more about special programs for association members.

mhoppe@corporatefour.com jdalki@corporatefour.com llarson@corporatefour.com www.corporatefour.com | 952.893.9218

APRIL–JUNE 2021 | HOUSING FIRST M

BUILDING FUTURES

Join us for a night in Havana to support building safe, dignified housing for Minnesotans experiencing homelessness. August 7, 2021 // JW Marriott, Mall of America 5:30 PM // Cocktail Reception + Silent Auction 7:00 PM // Dinner, Program, Live Auction, Music + Dancing $175 early bird pricing through July 17, $200 thereafter

Housing First Minnesota Foundation GALA

Not able to attend, but want to make a difference? Visit FoundationGala.org to donate.

Together, we can build a future without homelessness. Your generosity supports our 2021 community builds: Housing for Heroes • Two new builds in North Minneapolis • Building transitional housing for homeless veterans • Service organization: Minnesota Assistance Council for Veterans

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

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

Contract Interiors, Inc. Floor Covering Specialists

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

CENTRAL MARBLE PRODUCTS, INC. CULTURED MARBLE, GRANITE & ONYX VANITY TOPS | WALL PANELS | WINDOW SILLS SHOWER BASES

Health has never been more front of mind. Offer your employees a powerful, industry-backed health insurance program at amazing rates.

View our Elite Granite Series and Designer Edges at centralmarbleproducts.com 320-393-2085 | 800-422-0356 | Rice, MN WE MANUFACTURE AND INSTALL OUR PRODUCTS! OUTSTANDING QUALITY AND SERVICE SINCE 1976

ENROLL NOW

MEMBER OF

LEARN MORE AT HOUSINGFIRSTMN.ORG

We specialize in:

THE MINNESOTA MULCH LOG

• Rough Cut Mowing • Silt Fence Installation • Hydro Seeding • Seed and Mulch • Tree and Safety Fence • Inlet Protection • Erosion Blanket

It is a 10” geotextile fabric sewn together and filled with recycled wood product. It’s reusable and can be easily moved to another location. The Minnesota Mulch Log is a very effective perimeter control device and is more aesthetically pleasing providing a great alternative to silt fence.

Exceptional Service. Always. 763-262-SILT (7458)

• Reusable • Low Maintenance • Ditch Checks • Cost Effective

• Inlet Protection • Perimeter Control • Easy to Install • Self Anchoring

CHECK OUT OUR WEBSITE WWW.EROSIONWORKS.NET

2021 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. The Trillium Awards honor the associates and trade partners for their collaboration with these award-winning builders. This spring, there were 21 Parade Homes from 16 different builders awarded Reggies, along with 14 partnering companies that have been presented Trillium Awards.

$299,999 AND UNDER

Price Custom Homes

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

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

MEMBER SPOTLIGHT

$300,000 TO $399,999

Semler Construction, Inc.

$300,000 TO $399,999

Price Custom Homes

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

#171 | Ramsey | Builds 50+ Homes/Year

Trillium Partners: Croix Design & Drafting, Inc.; Village Floor & Wall, Inc.; Warners’ Stellian Appliance

Trillium Partner: Schwieters Companies, Inc.

$400,000 TO $449,999

$450,000 TO $499,999

Price Custom Homes

Elevate Builders, Inc.

#260 | Blaine | Builds 50+ Homes/Year

#237 | North Branch | Builds 1-49 Homes/Year

Trillium Partner: Schwieters Companies, Inc.

Trillium Partners: Andersen Windows; Croix Design & Drafting, Inc.; FocalPoint Flooring, Cabinets & Design

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

$450,000 TO $499,999

RT Urban Homes, Inc.

OneTenTen Homes, LLC

#30 | Lakeville | Builds 50+ Homes/Year

#52 | Lakeville | Builds 50+ Homes/Year

Trillium Partners: Ambiance At Home; In-Focus Systems

Trillium Partner: Schwieters Companies, Inc.

$550,000 TO $599,999

Ziegler Custom Homes, Inc.

$500,000 TO $549,999

Benzinger Homes

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

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

Trillium Partners: FocalPoint Flooring, Cabinets & Design; Warners’ Stellian Appliance

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

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

MEMBER SPOTLIGHT

$600,000 TO $699,999

Paulson Construction, Inc.

$600,000 TO $699,999

Hanson Builders, Inc.

#259 | Blaine | Builds 1-49 Homes/Year

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

Trillium Partners: FocalPoint Flooring, Cabinets & Design; Warners’ Stellian Appliance

Trillium Partners: Contract Interiors, Inc.; J. Becher & Associates; Schwieters Companies, Inc.

$700,000 TO $799,999

Custom One Homes

Robert Thomas Homes, Inc.

Trillium Partners: Andersen Windows; Contract Interiors, Inc.

Trillium Partners: Ambiance At Home; Contract Interiors, Inc.

#98 | Eden Prairie | Builds 1-49 Homes/Year

#108 | Chaska | Builds 50+ Homes/Year

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

$800,000 TO $899,999

Style & Structure, LLC

Stonegate Builders

#307 | Stillwater | Builds 1-49 Homes/Year

#325 | Woodbury | Builds 50+ Homes/Year

Trillium Partners: Contract Interiors, Inc.; Manomin Resawn Timbers; Schwieters Companies, Inc.

Trillium Partners: Contract Interiors, Inc.; Scandia Custom Cabinets

$900,000 TO $999,999

$1 MILLION TO $1.2 MILLION

Hanson Builders, Inc.

$800,000 TO $899,999

Zawadski Homes, Inc.

#229 | Andover | Builds 50+ Homes/Year

#281 | Dellwood | Builds 1-49 Homes/Year

Trillium Partners: Contract Interiors, Inc.; Schwieters Companies, Inc.

Trillium Partners: Andersen Windows; Schwieters Companies, Inc.; Warners’ Stellian Appliance

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

MEMBER SPOTLIGHT

$1.2 MILLION TO $1.5 MILLION

Hartman Homes, Inc.

$1.2 MILLION TO $1.5 MILLION

Hanson Builders, Inc.

#151 | Medina | Builds 1-49 Homes/Year

#165 | Maple Grove | Builds 50+ Homes/Year

Trillium Partners: Andersen Windows; Warners’ Stellian Appliance

Trillium Partners: Contract Interiors, Inc.; Schwieters Companies, Inc.

$1.5 MILLION TO $2 MILLION

$2 MILLION AND ABOVE

Hartman Homes, Inc.

Stonewood, LLC

#312 | Hudson | Builds 1-49 Homes/Year

#136 | Minnetrista | Builds 1-49 Homes/Year

Trillium Partners: Andersen Windows; Warners’ Stellian Appliance

Trillium Partners: Allstar Construction; Bravas; Manomin Resawn Timbers

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

Media in the

@ bravas_mn

From Artisan Home Tour preparations to the latest industry data, check out some of the places Housing First Minnesota has been mentioned on social and in the press this past quarter.

Custom One Homes

Award Winners Reggie and Trillium Awards were presented to the award-winning companies from this spring’s Parade of Homes.

@lifeofamarketrep

Northern Design Build Expo This year’s all-new Northern Design Build Expo kicked off virtually with educational sessions and an interactive trade show.

Building Permit Fee Legal Challenge Minnesota housing trade group questions some cities’ building permit fees

The Star Tribune features Housing First Minnesota’s building permit fee legal challenge.

Digest Feature Spotted in the most recent issue of the Digest!

@hirshfieldspaint

Parade of Homes Throwback @cheatah33

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

Hirshﬁeld’s shared this clipping from a Star Tribune section featuring the tour back in 1980.

SEEN + HEARD

@HOUSINGFIRSTMN

Artisan Home Tour The Artisan Home Tour preparations wrapped up, and the tour kicked off on June 11 with 30 stunning homes. Search #OnlyArtisan on Instagram to see even more posts about this summer’s tour!

@winc.mn

Mark D. Williams Custom Homes Inc

Charlie & Co. Design, Ltd.

@quartersawndesignbuild

Twin Cities homebuilding rose 50% in March

Permit Data

Single-Family Home Construction Up 50% in March

Permit data released by Housing First Minnesota is covered monthly by local news outlets.

Booming Twin Cities Housing Market Raises Concerns

Metro cities permit more than 1,100 homes in May

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

SEEN + HEARD

Member News Announcements HAVE NEWS?

SEND YOUR ANNOUNCEMENTS TO LAURA@HOUSINGFIRSTMN.ORG

New members MARCH-MAY 2021 CCM Finance, LLC Dane Swenson

ccm-ﬁnance.com | 612-564-6055

Congratulations

CSP & Associates, Inc. Randy Rheault

651-230-9274

Kowalski’s Laurie Bell

kowalskis.com | 651-796-6089

Ovation Homes, LLC Steve Alsip

ovationhomesmn.com | 612-328-8918

Schad Tracy Signs Jeff Schuppe

schadtracy.com | 507-367-2631

Tamarack Land, LLC

Award-Winning Remodel Congratulations to Housing First Minnesota member Lake Country Builders, Inc. for their 2021 National Contractor of the Year (CotY) Award, Entire House $250,000 to $500,000. This award is presented by the National Association of the Remodeling Industry for outstanding work through remodeling projects. The judging panel selected winners based on problem solving, functionality, aesthetics, craftsmanship, innovation, and degree of difficulty.

Shanna Schiffler

TamarackLand.com | 612-770-7568

The Kingdom Builders Lee Juvland

thekingdombuilders.com | 612-900-9166

Ultimate Drywall, Inc. Elizabeth White

ultimatedrywallinc.com | 612-354-9690

send them our way! Know someone who would make a great member? 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. You, 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! Current or potential members can contact our membership manager, Christopher Hagness, at 715-340-5610 or Christopher@HousingFirstMN.org.

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

Member News and 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. Remember to send all your important news and announcements to laura@housingﬁrstmn.org.

Member Bash This year’s Member Bash was all about celebrating our favorite member – you! It was a great day of food, friends, and libations.

June 15, 2021

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest

Big NIGHT

The Digest

HOUSING FIRST MINNESOTA | JULY–SEPTEMBER 2021

W E ’ R E B A C K , B A BY

B U I L D I N G I N D U S T RY G A L A OCTOBER 29

MYSTIC LAKE CENTER

JULY–SEPTEMBER 2021 | HOUSING FIRST MINNESOTA

The Digest