Building Insider Q4 2023 by CityScene Media Group

Official Publication of the Building Industry Association of Central Ohio

Volume 40 • Issue 4 | QUARTER 4 • 2023

2023 PARADE WOWS THE CROWDS WITH EXPANSIVE RANGE OF HOMES Jane Arthur Roslovic Looks Back on Her 2023 Presidency What Goes First, Doors or Floors?

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VOLUME 40 • ISSUE 4 BUILDING INSIDER is the official publication of the Building Industry Association of Central Ohio. MISSION STATEMENT As leaders in the housing industry, we are dedicated to protecting the industry while promoting ethical business practices and standards. We support our community and our members through professional development, legislative outreach, industry promotion and charitable efforts. BIA OFFICERS

Jane Arthur Roslovic, President Josh Barkan, Senior Vice President Troy Fritz, Builder Vice President Mike Reeves, Associate Vice President Joe Thomas, Secretary Jonathan Wilcox, Treasurer Bob Yoakam, Immediate Past President Jonathan Melchi, Executive Director

BIA TRUSTEES

Title First’s Builder Division

Kate Allen Tom Hart Todd Lipschutz Jeff Memmer Jeff Miller Nanette Pfister Mark Robinson Erin Uritus Jeff Woda Kelly Woods

BUILDING INSIDER MAGAZINE

Our builder division, headed by Mark Martin (Columbus) and Paul Thompson (Akron), has 18 staff members that are laser-focused on partnering with builders. “What it all boils down to is having the experience of working with builders for the last 30 years and being able to customize our workflow to meet their deadlines. “We work with them as business partners, we understand their business and we do everything we possibly can to help them meet their goals.” Sean Stoner, President Title First Agency works with both local and regional home builders, offering personalized, high-touch service that meets each builder’s specific needs — everything from land take downs, subdivision infrastructure, and development, to construction loans, lot purchases and final home sales.

For more information contact:

Mark Martin, VP Builder Division 614.854.0980 PH | 855.861.8083 FAX mark.martin@titlefirst.com www.titlefirst.com

NATIONAL REACH. LOCAL TOUCH. 4 BUILDING INSIDER QUARTER 4 • 2023

is published for the BIA by CityScene Media Group 1335 Dublin Rd., Ste. 101C Columbus, OH 43215 614-572-1240 www.cityscenecolumbus.com

Publishers of CityScene Magazine, Dublin Life Magazine, Healthy New Albany Magazine,Tri-Village Magazine, Pickerington Magazine, Weasterville Magazine and Discover Grove City Magazine

Kathleen K. Gill, President/CEO Dave Prosser, Chief Creative Officer Gianna Barrett, Vice President, Sales Jamie Armistead, Vice President, Operations Tyler Kirkendall, Rachel Karas, Maisie Fitzmaurice, Editors Laura Pappas, Rae Moro, Megan Brokamp, Advertising Sales Carol Rich, BIA Content Editor Rita Hechmer, Designer BUILDING INSIDER is published quarterly. For advertising information, call 614-572-1240. No part of this publication may be reproduced without the written consent of the publishers. Printed in the U.S.A. Copyright 2023

CONTENTS

QUARTER 4 • 2023

PARADE WOWS THE CROWDS WITH EXPANSIVE 10 2023 RANGE OF HOMES

S P E C I A L F E AT U R E S

JANE ARTHUR ROSLOVIC LOOKS BACK ON HER 2023 PRESIDENCY

COLUMBUS REALTORS®: CENTRAL OHIO INVENTORY CONTINUES TO RISE WHILE SALES BEGIN TO SLOW

COLUMNS

HOW-TO GUIDE FOR BUILDING A CONSTRUCTION SAFETY CULTURE

PRESIDENT’S PEN Celebrating Our Achievements of 2023, While Looking Ahead to 2024

EXECUTIVE UPDATE Optimistic About Our Industry and the Opportunities it Brings

COMMUNICATION CORNER Expand Your Company’s Visibility by Using Instagram

26 GOVERNMENT AFFAIRS Central Ohio Residential Market Update: Costs and Limitations of High Prices

LEGAL CORNER The Corporate Transparency Act – New Filing Requirements for Millions of Businesses

FOUNDATION UPDATE BIA Foundation Helps Shape Our Industry’s Future

SPOTLIGHT ARTICLES

WHAT GOES FIRST, DOORS OR FLOORS?

WHICH BATTS ARE BEST FOR SOUND CONTROL?

PREVENTING MOISTURERELATED CALLBACKS

biahomebuilders.com 5

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PRESIDENT’S PEN

Celebrating Our Achievements of 2023, While Looking Ahead to 2024 Over the last year, it has been an honor and privilege to serve as the first female President of the BIA of Central Ohio. When I stop to realize that I am the first female leader in 80 years—it becomes an overwhelming honor and yet a duty to encourage other professional women in building to follow in my footsteps. Jane Arthur Roslovic

2023 BIA President Treplus Communities

Women have a critical role to play in promoting greater gender diversity in leadership positions in the building and real estate industry by being positive role models, providing mentorship, encouraging networking, creating opportunities and sharing success stories. We can inspire and empower other women to become leaders of tomorrow. As I reflect on the past year, I cannot begin to express my gratitude for the wonderful experiences I have enjoyed in serving this organization. As the co-founder and leader of Treplus Communities, I must share that this role came with responsibility and not a title—but, the benefits have been numerous including an opportunity to network with passionate people and organizations who contribute so much to our communities (with and without recognition), advocacy for our industry, and great pride in the work we all do to make this a better place to live and work for future generations This year, I have led an organization that is an advocate for builders who have been through staffing and supply chain shortages, escalated lumber prices and increasing mortgage rates and now is preparing for a MAJOR boost to the economy from Intel, Amgen, Microsoft, Google and other large technology-related businesses. As an industry, we have found creative ways to overcome challenges and become stronger together. Executive Director Jon Melchi said it best as he encouraged “embracing change versus avoiding it” and addressing the tough issues necessary to impact a new result.

While it is important to celebrate the wins of the past year, now is also the perfect time to set goals for 2024 and beyond. As your 2023 BIA President, I want to encourage you to consider these goals as you are planning for the coming year: 1. Invest quality time in educating your employees as well as yourself on what innovation is available to maintain a competitive edge for your homes so that they most appeal to today’s renters by choice and buyers. 2. Take advantage of your BIA membership to further engage your employees in the industry, implement best practices, access opportunities for education and network. 3. Identify one way you can contribute to workforce initiatives to help future generations prepare for a career in the building trades or industry. Consider partnering with fellow BIA members by serving on or volunteering with the Workforce Development Council. As members, we must continue to celebrate our achievements and know that there is still more important work to be done with the anticipated growth and need for all types of housing projected in central Ohio. BIA members must be ready to answer the challenge and be a model for other building industry organizations across the country. After a first-hand view this past year, I have every confidence that we have the capacity to get this done by working together.

biahomebuilders.com 7

EXECUTIVE UPDATE

Optimistic About Our Industry and the Opportunities it Brings

JON MELCHI

BIA Executive Director

I've always thought one of America's great traits was our nation's collective optimism. Over the 246 years of our country's existence, there have been countless examples of our citizens' belief in our ability to rally, persevere, and ultimately improve the circumstances of the nation as a whole. When you look at our nation’s Founders, you must consider them optimists. They believed in the nation's ability to launch a revolution over the world's preeminent power. I assume you didn't open this issue of Building Insider looking for a discussion on the Founders’ views on optimism, but it's relevant to where we stand today as a nation and industry. When looking at opinion polls, the overall pessimism of Americans continues to rise. Part of this is warranted. Turn on the news or read your latest news feed, and the world sometimes seems as if it has gone crazy. Part of this can be attributed to the curation of lousy news in traditional and newer media outlets who long ago figured out that "Bank Not Robbed Today" isn't the way to garner interest. We must be aware of legitimately bad 8 BUILDING INSIDER QUARTER 4 • 2023

stories out there – looking at you, Jim Harbaugh and Michigan Football.

Biden-Trump rematch, and I can't say that I blame them.

For our industry, my concern is that pessimistic people don't buy houses or move into new apartments, and it is imperative that our industry frame the opportunities and possibilities that our industry brings to society.

But the Presidential election will not impact our short-term prospects in central Ohio. The reality is that MORPC has projected 89 people to be born or move to this region every day, 365 days a year, for the next 25 years. Consider the opportunity our region's growth could bring to our industry. Not only can we build many homes and apartments, all of which are needed, but we can be a part of this region's economic engine and help Ohio become an economic driver for our nation.

For instance, when I turn on the news, I hear of rising interest rates impacting the overall housing affordability in our market and limiting homebuyers' purchasing power. Yes, interest rates are rising. But I'd point out a few things to be optimistic about. First, our industry has responded with new lending products that make homes more accessible to buyers. Those on the lending and sales sides had to educate themselves, yes. Is selling a low 30-year fixed at 3% easier than a 2-1 buydown? Probably. But guess what? In a climate where rates are viewed as rising, homebuilders are better positioned to meet the consumer's needs than the existing home market. Challenges, absolutely. Reason to be optimistic. Yes. Also, feel free to remind those who don't believe sales can occur in a high-rate environment that in 1970, Ohio built nearly 750,000 single-family homes with an average mortgage rate near 10%. By comparison, from 20102019, we produced 300,000 singlefamily homes when the average rate was about 4%. Additionally, we are headed into a Presidential election year. As someone who has been following these races closely for many years, I can tell you that the incumbent party will campaign on things being great, and the opposition will tell you that it isn't. Additionally, I will go out on a limb and say that there won't be a lot of voters popping the bubbly over a

This is an exciting time to be in our industry. There are career opportunities at all levels of the residential development and construction process. As we close out the year, we often reflect on what to be thankful for. Let's be grateful that we work in an industry that connects people to their dream of owning a home. Let's remember how important having stable housing is to a young person's chances for success and the role we play in building that home. Let's consider the look on someone's face when you hire them into your company and discuss their career path. As I close, I want to recognize Ann Misiolek of Parksite, who is retiring at the end of this year. Ann is a BIA Hall of Fame member who has served as Associate Vice President multiple times, led countless Committees and Councils, and served on the Foundation Board. Nobody is more optimistic than Ann about this industry and the opportunities that it can bring. While we will miss Ann's active involvement, we can all take a lesson from her and enthusiastically champion this industry. Thank you, Ann.

biahomebuilders.com 9 7

2023 Parade Wows the Crowds with Expansive Range of Homes By Carol Rich

As central Ohio continues to grow and change — so has our region’s most popular and enduring home show, the BIA Parade of Homes. The 2023 Parade once again opened up homes for viewing that were located throughout our region. But this year’s format expanded the Parade’s scope to include even more housing options. During long weekends from September 21 to October 8, consumers toured 55 homes, created by 24 builders, in a broad range of types, styles and price points. They explored everything from wow-factor single families, to stylish urban-lifestyle townhomes, to luxury apartments in 55+ communities, to family-friendly homes with openconcept floor plans. Parade-goers checked out living spaces and amenities in some of our area’s newest and most intriguing neighborhoods, but they weren’t limited to experiencing a single community. Consumers could zero in on available homes in 21 different neighborhoods all over central Ohio. This year, for the first time, the Parade offered tours of “For Rent” properties. By adding rental options, we gave some of the BIA’s most talented builders the opportunity to showcase their products. There’s substantial local demand for “For Rent” homes, and our 2023 Parade was able to provide consumers with an in-depth look at these popular choices.

10 BUILDING INSIDER QUARTER 4 • 2023

As in past years, the Parade gave consumers the chance to connect with builders. And they also gave people the opportunity to scope out the work of other BIA members — everyone from interior designers to landscapers to architects to suppliers. The Parade spotlighted a featured community: Quarry Trails, located next to Quarry Trails Metro Park, Franklin County’s newest Metro Park. Developer Thrive Communities transformed a location previously used as a quarry into a beautiful, contemporary development. When complete, Quarry Trails will be a 607-acre, mixed use community, featuring homes built in a unique urban farmhouse style. The community’s proximity to the Metro Park, with its mountain biking trail, boat launch for canoes and kayaks, rock climbing, dog park and waterfall, sets it apart from any other development in central Ohio. Quarry Trails was the venue for the BIA Parade of Homes Excellence Party, held on September 19. A crowd of 200 gathered in the beautiful setting to network, enjoy a casual hors d’oeuvres dinner and watch the Parade awards presentation. The dazzling glass awards presented to this year’s award winners were custom-created by Edna Mae Berkey, the BIA’s Manager of Finance and Administration and the owner of a glass blowing studio, PB & Jammy Glass.

The Parade included a popular contest component that encouraged people to visit multiple homes. Participants scanned a unique blue ribbon QR code found in each Parade home. Contest winners were awarded discounts and/or gift cards. Our thanks to the contest sponsors: America’s Floor Source, Two Men and a Truck Junk Removal, Moretti’s of Dublin and CityScene Media Group.

A BIG THANK YOU TO OUR GENEROUS PARADE SPONSORS:

And the winners are... Condominiums $250,000 - $500,000

Single Family $500,001 - $750,000

Best Community Amenities D.R. Horton | 1461 Doubleday Dr.

Best Curb Appeal M/I Homes | 444 Bethpage Blvd.

Best Curb Appeal, Best Outdoor Living Space, Best Kitchen, Best Interior Décor Schottenstein Homes | 6866 Ringbill Loop

Best Outdoor Living Space, Best Owner’s Suite, Best Living Space, Best Floor Plan, Best Interior Design

Best Living Space, Best Floor Plan Maronda Homes | 101 Coyote Willow Dr.

Best Kitchen Maronda Homes | 4401 Belle Apple St,

Best Overall Schottenstein Homes | 6866 Ringbill Loop

Best Overall Pulte Homes | 6344 Zuccaro Dr.

Condominiums $500,001 - $730,00 Best Community Amenities, Best Curb Appeal 3 Pillar Homes, LLC | 4307 Flamingo Dr. Best Outdoor Living Space, Best Kitchen Epcon Communities | 6660 Trinity Mist Way Best Living Space, Best Floor Plan, Best Interior Décor 3 Pillar Homes, LLC | 4307 Flamingo Dr. Best Overall 3 Pillar Homes, LLC | 4307 Flamingo Dr.

Single Family $320,000 - $500,000 Best Curb Appeal M/I Homes | 2775 Chatwood Loop Best Outdoor Living Space Maronda Homes | 404 Wagon Ave. Best Kitchen Pulte Homes | 7715 Nottingham Blvd. Best Owner’s Suite, Best Living Space, Best Floor Plan, Best Interior Design M/I Homes | 6381 Hamilton Woods Blvd. S. Best Overall M/I Homes | 6381 Hamilton Woods Blvd. S. 12 BUILDING INSIDER QUARTER 4 • 2023

Pulte Homes | 6344 Zuccaro Drive

Single Family $750,001 - $2,500,000 Best Curb Appeal, Best Living Space 3 Pillar Homes, LLC | 5609 Evans Farm Dr. Best Outdoor Living Space Bob Webb Homes | 1139 Winterberry Dr. Best Kitchen, Best Owner’s Suite, Best Floor Plan, Best Interior Design Old World Custom Homes | 5425 Maple Glen Dr Best Overall Old World Custom Homes | 5425 Maple Glen Dr.

Multi-Family Best Community Amenities Treplus Communities | 90 Burr Oak Dr. Best Kitchen, Best Owner’s Suite, Best Living Space, Best Floor Plan, Best Interior Décor The Marketplace at Evans Farm | 1328 Waxberry Way Best Overall The Marketplace at Evans Farm | 1328 Waxberry Way

Best Overall...

Condominiums [$250,000 - $500,000] Schottenstein Homes

Condominiums [$500,001 - $730,00] 3 Pillar Homes, LLC

Single Family [$320,000 - $500,000] M/I Homes

Single Family [$500,001 - $750,000] Pulte Homes

Single Family [$750,001 - $2,500,000] Old World Custom Homes

Multi-Family The Marketplace at Evans Farm

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Are Air-to Water Heat Pumps Right for Central Ohio? Heat pumps are an essential part of every HVAC company’s offerings. While previously air-to-air heat pumps were most common in homes in colder climates, equipment options have expanded in response to consumer demand — and air-to-water heat pumps are now showing up in Columbus-area homes. Air-to-water heat pump systems have evolved to become a workable option for homes in colder climates, like central Ohio’s. Once installed in new builds or retrofitted into existing homes, the efficient system design can reduce a homeowner’s energy costs and provide a whole-house, solution. The automation is tried-and-true. Air-to-water heat pumps have been in use, especially in Europe, for years. The technology is straightforward — it really comes down to a heat pump heating water for distribution. How do they work? Air-to-water heat pumps have some similarities to air-to-air heat pumps. The two systems both use the same refrigerant process and have the same functional components. The main difference is that there is a heat exchange from the refrigerant cycle to a water loop, in an air-to-water heat pump. Air-to-water heat pump systems are available in two basic types: monobloc and self-refrigerant. In a monobloc system, all the components are encased in a single outdoor unit. Since the system components are outside, a glycol-mix supply-and-return loop must be installed from the water storage tank inside to the outdoor heat pump so the water can flow through. By contrast, a selfrefrigerant system has an outdoor compressor/evaporator that channels compressed refrigerant to a condensing unit located inside. The core component of an air-to-water system is its buffer tank. These are thermal batteries that store Btus

14 BUILDING INSIDER QUARTER 4 • 2023

generated by the heat pump for distribution, as needed, in the home. The buffer tank is critical because it lets the heat pump run at a steady pace, with a stable load, to create the highest possible efficiency. How do you decide if an air-to-water heat pump is right for a home? The calculation comes down to determining the Btu demand for the home and its individual rooms. International Energy Confirmation Code standards call for calculating a building’s specific envelope dynamics, including the home’s volume, exposure, climate zone and defined design temperature — the ordinary temperatures in the location where the system will be installed. When it comes to considering design temperature — Columbus is located in the USDA hardiness zone 6a. Winters are more moderate here than they are in the northern parts of the state and we generally aren’t subject to harsh winter low temperatures. On our few bitter nights, where the temperature dips down below zero, a heat pump won’t deliver optimal output and efficiency. But by mid-morning, when the outdoor air is warmer, the heat pump will go back to operating with its usual efficiency and Btu output. An advantage for air-to-water heat pumps is water’s superior ability for moving heat energy. This means in an installed system, the distribution components can carry significantly more heat energy than a forced-air system can. This benefit has a favorable impact on distribution costs and efficiency, as well as the amount of ductwork needed. Installing air-to-water heat pumps into new homes, or retrofitting them into existing homes, provides your buyers with adaptable and efficient HVAC automation. The technology has been successful in applications throughout the world — and it’s a feasible solution for central Ohio homes.

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Jane Arthur Roslovic Looks Back on Her 2023 Presidency By Carol Rich

Along with her involvement in the BIA, Jane is active in both business and civic organizations. Locally, she has served on the boards of Broad Street Financial Company, Columbus School for Girls, Franklin Park Conservatory and the Charles Kleibacker Fund at The Columbus Museum of Art. She has also been a featured speaker on active adult housing at numerous national conferences. As 2023 wraps up, Building Insider sat down with Jane to get her thoughts on her presidency and the BIA’s achievements over the past year. Building Insider: Looking back at 2023, what BIA accomplishments have you been the most proud of ? Jane Arthur Roslovic: I’m excited we’ve been meeting with the City of Columbus about getting plan review completion done in a more streamlined and expeditious way. We’re not there yet, it will take time to make those process changes concrete, but I feel really good that our BIA board members and Jon Melchi have been working with city officials and making progress. In addition, our BIA staff increased our public engagement opportunities using the Columbus Dispatch and other media outlets to educate public leaders on the need for housing. I’m also excited about the BIA’s Multi-Family Builder membership category. At the end of the day, we need housing for sale or for rent in the communities we serve. During the past year, our association benefitted from the vision and leadership of BIA President, Jane Arthur Roslovic. As the BIA’s first female president, Jane blazed a trail for other women to become more active in our industry and association. Jane is the CEO of Treplus Communities, an awardwinning multifamily development company that focuses on the active adult market segment. Treplus is known for its large, elegant single-story living spaces and communities that feature outstanding amenities. In the real estate development and investment business since 1987, Jane built a solid career developing and managing condos and apartments. In 2012 she became a managing member of Treplus Communities. 16 BUILDING INSIDER QUARTER 4 • 2023

BI: How do you see the BIA’s communications with municipalities? Jane: The communications between the Builders and Developers Council and the municipalities have been very strong. Our members are really at the table. They’re figuring out how to create strong relationships and how to make it work. A few examples of the work being done: our members and staff played a critical role and added support to Plain City in the formation of the Mid-Ohio Sewer and Water District. Our members have formed working groups for each County that can quickly respond to urgent items within the County’s region. We are also part of planning several new rezoning processes in counties that include Franklin, Madison, Licking and

Fairfield, which gives the BIA a seat at the table for creating new zoning codes. BI: The BIA has led the way in educating business and civic leaders, and municipalities, on ways to increase housing. Is that leadership continuing? Jane: The BIA’s Housing Needs Assessment funded by the BIA Foundation first in 2018 and then updated in 2022, was pivotal. This year, the Foundation authorized a White Paper, Housing Creation Agenda, that will be created by the Montrose Group. The White Paper is going to be very important not just for the BIA and leaders in the Columbus area — it’s also going to be important for leaders throughout the state of Ohio. The study should be completed by the end of the year. BI: What were some of the critical issues the BIA dealt with during your presidency? Jane: Workforce development is definitely one. As BIA members, we’re very attuned to this issue. There’s so much opportunity in the construction industry for young people to have meaningful careers. We encourage high schools, community colleges and technical schools to step up and build awareness of how rewarding a construction career can be. People think it’s all about technology, but we need plumbers, carpenters and electricians — we need all the trades, and we need people to be trained and contributing to the industry now. The BIA and the BIA Foundation have made significant efforts over the past years to move forward on workforce development. BI: As a multifamily builder yourself, what are your thoughts about the Parade opening up to include “For Rent” homes? Jane: It is crucial for communities to give people who want to buy, as well as those who want to rent, the opportunity to do what works best for them. Throughout the U.S., we are seeing the need for providing both options, since people have their own fiscal opinions on rent versus buy housing. I think the consumer understands that. The scattered site approach that the BIA has taken in our Parade of Homes, which now includes single families, condos and apartments, is really to bring awareness to the public that our members provide a range of housing options throughout central Ohio. The Parade is an important event for Columbus and we followed consumer interest by adding our “For Rent” component. I know for our company, we had great traffic to our properties.

BI: What BIA events stood out for you in 2023? Jane: There were several. In particular, I think that the BIA Golf Outing and the Clay Shoot are really important for our members. These events give our members the opportunity to get together and have conversations about what is going on in our market, and both outings give them that opportunity. The PWB also offered an evening with Betsy Goldstein to hear about the impact of Intel. The Speed Networking event was a terrific event for our members and our vendors to meet and really have an opportunity to build relationships with each other. Our members benefited from being introduced to different products and services. We had terrific feedback from both sides. BI: Who are some of the people the BIA worked with over the last year to achieve its goals? Jane: The BIA staff, led by Jon Melchi, worked especially hard this year and I want to thank them all. Our members worked closely with numerous municipal officials, business leaders and civic groups. We’ve met with people in each of these groups to hear what their needs are and find out where the BIA can help. We also hired Kelly Harrop, Government Affairs Manager, who is working closely with all of the entities on behalf of the BIA. BI: What will be some of the major issues facing our local industry in 2024 and beyond? Jane: Intel is going to have an enormous impact on all of us in areas that include labor, chain supply, infrastructure and entitlement issues with Franklin and Licking Counties. We’re already asking the questions and planning for the impact it will have on all of central Ohio’s home building industry. BI: You’re the first woman president the BIA has had in its 80-year history. How has your presidency been different? Jane: I took this position very seriously. It is my hope I represented the BIA well. It’s really important in our industry to get women involved. Women are the majority decision makers in the buying and renting of homes. We have a lot to contribute in what the customer is looking for in a home. I’d like to see more women be welcomed into the industry in every aspect of construction and development.

biahomebuilders.com 17

What Goes First, Doors or Floors? It’s a chicken-and-egg situation: what should get installed first, the interior doors or the flooring?

opening. Set the scribes to the mark made on the hinge side and scribe both legs before making the final cuts.

When you ask industry pros, you get a range of answers. There are advantages and disadvantages for both sequences.

To install the jamb for a tight fit, set the jamb’s head flush with the drywall on both sides of the door. After screwing in the hinge side in plumb both ways, add structural screws behind the hinges to accommodate the weight of the door.

Some seasoned builders prefer to install doors before the flooring. Doing the doors first makes it an easier process for the workers installing the doors, although it can be a trickier situation for the crew installing the floors. When you install the doors first, it’s effective to undercut the jamb using a tool like a pull saw placed on top of a piece of scrap of flooring. You’ll have a jamb undercut with the thickness of the saw blade removed. If the flooring on both sides of the door is the same height, you can make the same cut all the way though the jamb with no issues. However, if the flooring material on either side of the door will be different heights, for example tile in the bathroom and hardwood in the hall, the door installation will need to compensate for this more problematic transition. The most effective way to handle the process: cut the jamb at one height from one side, and then make a cut at the other height from the other side. However, the floor installation won’t be as easy, since the installers will have to go under the jambs. In new construction, many builders think it’s easier to install the flooring first because the crew has a clear path to do the installation without having to work around the doors. After the flooring is in place, then your workers will be ready to install the door jambs to the floor. There may now be a few more moves involved in the door installation process, however it will be easier to fine tune the height of the gap under the door. When you’ve defined the gap size, your first step is to mark the distance on the hinge side of the door jamb. If you need to cut the jamb down in length, a miter saw is an effective tool for the job. Find the difference in level on the floor and then, with the hinge side as the high point, cut the leg leaving it long enough for the jamb to fit the

18 BUILDING INSIDER QUARTER 4 • 2023

Next, shut the door on the jamb’s latch side and line up the top with the drywall. Be sure to keep the gap between the door and the jamb even when you shim and screw the door. When the door is positioned so it hits against the stops evenly from top to bottom, it’s ready for you to shim and screw the bottom. Final steps: shim behind the strike plate until the gap is exactly as it should be for an even reveal all around. Add screws as needed to keep the shims in position, and finish with a shim and screw to the head jam. So, what should go in first — the doors or the floors? The answer is: it depends on the circumstances.

THANK YOU FOR CELEBRATING WITH US. We look forward to the next 150 years of serving Franklin County.

columbuslibrary.org | 614-645-2275

Which Batts Are Best for Sound Control? When sound proofing is a priority for your buyers — what is the best batt insulation you can use? You might think sound control batts would be superior to conventional fiberglass batts, but experts at Owens Corning report there is little to no difference between the two products. A comparison for the R-values of Owens Corning’s 3 1/2 inch thick thermal batt insulation, and their sound attenuation batts, show them to both be R-11 — exactly the same. The difference between the fiberglass soundcontrol batts and the unfazed fiberglass thermal batts is simply in the way the two are marketed.

r e mo d e l s

•

It’s the same story for CertainTeed’s 3 1/2 inch thick sound control batts (also R-11). Schuller International offers sound-control batts that are slightly, but not appreciably, less dense than their thermal-control batts. Sound control batts and regular thermal batts are usually comparably priced. However, if you find thermal batts for a lower cost than the sound control batts, you can definitely feel confident about purchasing and using them for sound control.

n e w h om e s

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Preventing Moisture-Related Callbacks Callbacks are costly and time-consuming — so how can your company avoid them? In Ohio, claims for defective construction can be made long after the standard one year warranty period. Ohio’s Statute of Limitations is now eight years for contracts and Ohio’s Statute of Repose requires some claims can be asserted within 10 years from the substantial completion of work. So, it’s important that your construction and design are able to hold up throughout this time frame without problems. The most common issues that lead to callbacks fall into three broad categories: below-par design, substandard construction — and homeowners with unrealistic expectations. To preempt callbacks, it’s a no-brainer to catch errors at the outset and use best construction practices. Letting your workers know about any potential problem areas you find, along with ways to avoid them, is a key step in callback avoidance. Moisture-related issues account for a good-sized portion of callbacks. By refraining from some frequently-made design and construction mistakes, and applying reliable solutions, you can minimize the risk of water entering your buyer’s home. Your first step is making sure a home’s roof can handle all the water that will be coming its way. During design, double check that rain water and melting snow have a clear path to drain and aren’t obstructed by any intersecting details in the roof, outside walls, dormers or eaves. Additionally, it’s essential to apply flashing to the areas where the walls and roof intersect.

22 BUILDING INSIDER QUARTER 4 • 2023

It’s also important to stay away from reverse shingling between layers of flashing and housewrap. Instead, secure a home’s walls with a secondary moisture barrier that’s installed like shingles, with the upper layers overlapping the lower layers, to protect against moisture. Another line of defense: designing the wall system so it can drain quickly and effectively, by creating a correctlydetailed water-resistive barrier (WRB). An effective WRB is detailed so that the water flowing against it always travels down and away from the home. It’s also crucial to properly apply window and door flashing. If your crew is using peel-and-stick flashing, the sequence of application needs to be right for it to work. The sill of any opening should be flashed first, before installing the window or door. Install the window second, using a compatible sealant and then, for your finish, add a head flashing. When it comes to keeping runoff and groundwater away, a home’s site drainage plays a major role. Builders can work to minimize problems by initially siting and grading and then installing perimeter drainage. But for your company to eliminate dissatisfaction and callbacks, your homeowners need to be aware upfront of the problems inherent to their site. Finally, manage homeowners’ unrealistic expectations through good communication. Oftentimes an open line of communication during the building process can avoid issues down the road with expectations not aligning.

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COMMUNICATIONS CORNER

Expand Your Company’s Visibility by Using Instagram Since it’s a highly visual platform, Instagram is a natural marketing tool for homebuilding industry businesses. It’s ideal for showcasing new builds and renovations, décor and landscaping, and home products ranging from tile to flooring to countertops.

By Carol Rich

Owned by Meta, the company that also owns Facebook and Threads, Instagram attracts a younger audience. Statista calculates that almost 31 percent of global Instagram audiences are aged between 18 and 24 years, 30 percent are aged between 25 and 34 years, and approximately 16 percent are in the 35 to 44 years-old age range. If your target market falls in these younger demographics, Instagram may be an option. According to Buffer, the formula for a business’s Instagram success comes down to: having a clear vision and strategy for what you want to accomplish, consistent posting, familiarity with your audience and a distinctive visual style.

Your business can use Instagram to connect with your target audience and build brand awareness. It’s free to open an account and by posting regularly, you can engage with a wide range of potential buyers.

Build your Instagram brand— and show your company in its best light — by posting high-quality images and videos. What should you post and how often should you do it? Show off your best projects, the ones in your portfolio, and post photos of your happy buyers. Highlight products that are new, unique and/or trend-setting, and post expert advice. You’ll want to post regularly — one to three times a week is a good pace.

A photo and video sharing social media platform, Instagram is immensely popular. With 2.35 billion monthly active users (MAU), it’s estimated to be the fourth most used social media outlet as measured by MAU.

Instagram is an outstanding platform for creating engagement with consumers. But first you need to build a following which oftentimes sounds easier than it is to accomplish. Start with employees, family and friends, then make sure to tag your

Is your company on Instagram? If not, maybe it’s time to set up an account.

24 BUILDING INSIDER QUARTER 4 • 2023

associates, suppliers and clients as well as popularly searched keywords such as #remodeling, #kitchens, etc. Remember to follow the companies and individuals you’d like to follow your company! Users can like, comment on and forward your posts — and these actions will raise your company’s online visibility. And to increase engagement, ask users to share their opinions. Instagram gives you opportunities to connect with consumers, by telling a story about your company and its products and services. One way to share your company’s inside story: add posts or create an Instagram story that gives people a behind-the-scenes look at your company and staff — for example, show your crew installing beautiful custom cabinetry, your team getting your Parade home ready on opening day or your employees participating in a community food drive. You can take your business-toconsumer connection even deeper by using Instagram live for an educational demo of your products or services. And beyond posting, don’t forget to make the most of your Instagram home page. Be sure to include a link to your company website and if you have a tagline, include it. Bottom line: You can leverage a free Instagram account to build a following, without any expense other than your time. So, consider if it’s worth your time to join Instagram and start engaging with potential buyers.

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GOVERNMENT AFFAIRS

Central Ohio Residential Market Update

Costs & Limitations of High Prices By Malcolm Porter

approvals are granted. This remains the top impediment in our region’s housing market. However, the residential approval process is not our only challenge, and is not the focus of this writing. One of the other key challenges in our region is rapidly increasing costs and the implications for renters and potential buyers. To get insight into the cost increases from “pre-pandemic to today” that central Ohio residential new development and construction firms are experiencing, the BIA surveyed a sample of developer/builder members in each in following categories: • non-profit organizations building single family homes (building a small number of homes per year) • for-profit companies primarily focused on single family homes (building hundreds of houses per year) • multi-family for-profit companies (building several hundred or more units per year) Despite the wide range in size of the organizations, as well as business models, the results in the sample were remarkably similar across all organizations. And anecdotal conversations with other organizations and companies in the BIA indicate generally similar numbers.

The challenges for our region’s housing market have been widely reported over the past few years. With the Intel announcement, there has been even a greater focus on the question of “where is everyone going to live?” In nearly every community in the region, the BIA is working with local leaders on housing issues in some form. There are many challenges in our region related to residential development approvals. Community planning and zoning approvals are more and more difficult to obtain, and have increasing restrictions when 26 BUILDING INSIDER QUARTER 4 • 2023

Every organization measures costs differently; however, it might be fair to suggest that overall costs have increased at least 40% to 50% over the past three or so years. Consider these specific citations: • per linear foot cost of lot development has increased from $800 to $1500. A 50-foot lot has seen a $35,000 increase in costs from $40,000 to $75,000 • a total cost increase for a non-profit on an identical floor plan is 46% over three years • an apartment rent needs to increase between $200 and $225/ month just to cover cost increases in the past three-and-a-half years when comparing two comparable

buildings, with the following cost category breakouts: • Vertical construction increase of 46% • Land development increase of 47% (see comment above about approval processes) • Predevelopment cost increase of 31% • Zoning increase of 100% (see comment above about approval processes) For a 200-unit building, these cost increases translate to approximately a $7 million dollar increase in the total cost for the same building in the past three years. Why are costs up this much? Inflation at the national level is well documented. Furthermore, particular supply chain and labor challenges in the construction industry have driven material and labor costs in construction above general national inflation figures. And at a local level, the competition in central Ohio adds to cost pressures. Several high-profile commercial projects are having a profound impact on the costs for basic materials like stone, cement and pipe; additionally, land and labor cost impacts are acute. One residential builder’s perspective on these large commercial projects is that residential development is seeing all the costs, and little of the benefits, so far. Impacts on production of new homes “Costs get passed on to the end user” is the general premise. And while there is truth in this statement, it is not absolute and has limitations. Rents and mortgage payments are generally the greatest expense in any household. Because of the scale of these impacts on a household’s budget, there are simply limits to how much individuals can afford and collectively how much the market can bear. So, while there may be demand for new housing, the key question is, can

the housing be built at a rate that can be afforded by those with the demand? When combined with today’s higher interest rates, the central Ohio market is running up against real limitations in what the market can afford. Despite our need for more housing, 2023 starts are flat compared to 2022 – 8,033 permits so far this year compared to 8,013 permits in the same point in time last year. Unfortunately, our region is on pace to underperform demand again, looking like 12,000 to 14,000 units rather than the close to 20,000 units needed. This has been our trend for some time. What does the future hold? While there is little that central Ohio can do to impact interest rates and some costs of materials, central Ohio can impact this cost challenge with policies that help support the needs of a healthy housing market. Local governments and their planning/ zoning processes have a direct impact on the cost of land and amount of housing that can be built on that land. Central Ohio is facing the economic reality that the cost structure of our past patterns of development cannot be maintained. Our region needs to find more efficient and denser residential uses in order to better manage the fixed costs of development. (There is common ground on this point, since local governments share similar challenges with the costs of building and maintaining needed public infrastructure.)

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The BIA looks forward to continuing to work with any local community in the region on the details of these challenges and working to forge common solutions. Malcolm Porter is Public & Government Affairs Consultant for the BIA.

biahomebuilders.com 27

LEGAL CORNER

The Corporate Transparency Act – New Filing Requirements for Millions of Businesses

GARETH WHALEY

Attorney, Isaac Wiles

The Corporate Transparency Act (CTA), passed in 2019, will be coming into effect beginning in 2024. Many businesses will be required to file a “beneficial ownership report” with the federal Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department. The filings will be part of a database made available to law enforcement agencies to fight money laundering. If you own or manage a business, this new law may affect you directly. Who must file a report? A company will be required to file a report under the CTA if it constitutes a “reporting company,” which is broadly

defined as a corporation, LLC, or tribal organization registered to do business in any U.S. state or tribal jurisdiction. This is an extremely broad definition, but there are 24 categories of exemptions. Exempt entities are generally subject to other regulations that allow the federal government to identify ownership. Most significantly, “large operating companies” – any company with at least 20 employees, a physical location in the U.S., and greater than $5 million in gross receipts or sales – are exempt. Other exempt entities include financial institutions, public utilities, or subsidiaries of exempt entities.1 When is it due? A non-exempt reporting company must file an initial report within one year after the CTA becomes effective on January 1, 2024. A reporting company created in 2024 or later will need to file a report within 30 days of its creation. After the one-year deadline has passed, a company which was once exempt but stops qualifying will need to file an initial report within 30 days after it no longer meets the exemption requirements. What gets filed? An initial report includes several pieces of basic information, but most significantly, it includes the personal information of the reporting company’s “beneficial owners” – any individual who owns at least 25% of the reporting company or exercises “substantial control” over the company’s affairs.

1 For a full list of exemptions, see 31 CFR 1010.380(c)(2) (effective January 1, 2024). 28 BUILDING INSIDER QUARTER 4 • 2023

This includes the senior officers of the company. The personal information filed will include the owners’ full legal names, their date of birth, residential street address, and an image of their driver’s license, passport, or other identifying document. What if I don’t file? A failure to file an initial report will eventually lead to civil penalties and fines, and may lead to liability for senior officers or others responsible for the failure to report. The person filing the report must certify – under penalty of law – that it is true and complete. FinCEN estimates that preparing a CTA filing should take between 1.5 and 10.8 hours, depending on the complexity of the reporting company.2 Although these new rules may seem burdensome, the business operations of a company which is prepared in advance (and isn’t engaging in money laundering) will be minimally affected by the new filing requirements. We encourage companies to reach out to an attorney familiar with the new changes if they have questions or concerns about their CTA filing. Gareth Whaley is an associate in the real estate practice group at Isaac Wiles. He can be reached at gwhaley@isaacwiles.com.

88 FR 2762.

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BIA FOUNDATION

BIA Foundation Helps Shape Our Industry’s Future

JON MELCHI

BIA Executive Director

In the heart of our region, the BIA Foundation stands as a beacon of progress, driving positive change and fostering a thriving community across central Ohio. Through its unwavering commitment to housing research, the promotion of workforce development and support for affordable housing initiatives, the BIA Foundation is making significant strides in shaping our industry's future and enhancing countless individuals' lives. As the Foundation continues to champion these critical causes, the call for support from the community becomes more urgent than ever. At the core of the BIA Foundation's mission is housing research. In an ever-evolving 30 BUILDING INSIDER QUARTER 4 • 2023

landscape, understanding the housing market dynamics is paramount to sustainable growth. The Foundation invests time, effort and resources into comprehensive research, generating valuable insights that guide industry stakeholders, policymakers and community leaders. By staying ahead of trends and identifying emerging needs, the BIA Foundation equips central Ohio with the knowledge necessary to make informed decisions, ensuring a robust and resilient housing sector that can weather future challenges. Workforce development lies at the heart of any thriving industry, and the BIA Foundation recognizes this fundamental truth. The Foundation actively promotes cultivating a skilled and diverse workforce through strategic partnerships and initiatives. By providing educational opportunities, vocational training and mentorship programs, the BIA Foundation not only addresses the current labor demands of the industry but also invests in the professionals of tomorrow. In doing so, the Foundation contributes to the economic vitality of the central Ohio region, creating a workforce that is adept at meeting industry needs and empowered to build fulfilling careers. Affordable housing is a cornerstone of community well-being, and the BIA Foundation understands its pivotal role in ensuring housing accessibility for all. Like many regions nationwide, central Ohio faces challenges in providing affordable housing options. The Foundation actively collaborates with local organizations, policymakers and developers to support initiatives that make affordable housing a reality. Through grants and advocacy

efforts, the BIA Foundation works tirelessly to bridge the gap between housing demand and supply, fostering communities where individuals from all walks of life can thrive. As the BIA Foundation continues to spearhead these impactful initiatives, the importance of community support cannot be overstated. Donations fuel the Foundation's efforts, enabling them to expand their reach and deepen their impact. By contributing to the BIA Foundation, individuals and businesses can become active participants in building a stronger and more vibrant central Ohio. Donating to the BIA Foundation is an investment in the future of our community. It's an investment in research that informs intelligent decisions, in workforce development that empowers individuals, and in affordable housing initiatives that create a more inclusive society. The ripple effects of such contributions extend far beyond monetary value, reaching into the very fabric of our community and leaving an indelible mark on the lives of those who call central Ohio home. In conclusion, the BIA Foundation's commitment to housing research, workforce development and affordable housing initiatives is instrumental in shaping central Ohio's future trajectory. By supporting the Foundation through donations, individuals can actively participate in the positive transformation of our industry and the region. Together, we can build a central Ohio that is resilient, inclusive and positioned for a brighter tomorrow.

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