Montana Home Experts - Fall 2018

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FA L L 2 018

MONTANA HOME

Experts A MAGAZINE FOR MBIA MEMBERS

KIM CHAMBERS:

Born to Build INDUSTRY NEWS

+ Home Buying in a Hot Market + Innovative Products: 2018 IBS Awards + Thoughts from a Freshman Senator MEMBER NEWS

+ Executive Director Message + Association Standouts


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FALL 2018


MONTANA HOME

| FALL 2018

Experts

“ I paved my way in the industry as an educator and an informed person rather than the little girl that got to take over daddy’s company.”

KIM CHAMBERS CHARTER CONSTRUCTION

04 From the President

14 Innovative Building Products

07 Q&A: Home Buying in a Hot Market

17 From the Executive Director

Welcome from 2018-2019 MBIA President Nick Ban as we bring you the Fall 2018 issue.

Katie Lawler, a real estate lender with Stockman Bank, weighs in on the Montana housing market.

10 Kim Chambers

Learn how the co-owner of Charter Construction carved her own path to success in the industry.

We’re highlighting some of the Best in Show winners from the 2018 NAHB International Builders’ Show.

MBIA’s ED discusses the 2019 Legislature and MBIA’s readiness to defend affordability.

18 Association Standouts

Our members make us proud! This issue we feature Territorial Landworks and Pella Windows of Great Falls.

23 Thoughts from a Freshman Legislator Rep. Sue Vinton (R-Billings) shares her experience.

“Get out and meet your local legislators and candidates. Volunteer to help. Volunteer to put up a yard-sign at your home and/or job site. In local races, these small efforts make a big difference...and the candidate will remember that you have helped.” STEVE SNEZEK / MBIA EXECUTIVE DIRECTOR

MONTANA HOME EXPERTS

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WELCOME |

FROM THE PRESIDENT A PUBLICATION OF

1717 11th Ave / Helena, Montana 406.442.4479 www.montanabia.com

ON THE COVER

Kim Chambers Charter Construction

Photo by Wandering Albatross Photography

DESIGN BY

MBIA IS SESSION-READY I’m excited that I get the chance to be the President of this great association. MBIA has meant a lot to me and my business over the years that I’ve been involved. Greg McCall asked me to attend a meeting early on, and I thought it was interesting how everyone interacted as a unit. Everyone with the same background as me, working to advance our industry, as a team. I want to give a big thank you to Greg McCall for his great leadership as President over the past year. Greg got me involved in the Billings Association many years ago, and it’s been fun to be in the leadership team with my good friend. We face many challenges over the coming months. Lumber prices have soared upwards of $6800 per house over the past 18 months. We recently built the same house plan that we built two years ago, and the lumber package is roughly $15,000 more than it was. The Legislature is due to meet starting in January. We have several things on our agenda – Affordable Housing Legislation, working to curb the misguided efforts of Inclusionary Zoning, defining “habitability” as it applies to the 10 year warranty, reigning in the authority of municipalities in their emergency powers – in addition to resisting many efforts to limit our access to water, tax increases, land-use limitations, to name a few. We have an excellent team in Helena which will work hard to fight for our right to do business. But the efforts start now, and they start with you. Most of our legislative victories (and losses) happen on election day. Electing the right candidates to office is crucial in passing or opposing legislation. With this being a nonPresidential year, turnout becomes even more important. GET OUT AND VOTE. Vote to protect your right to do business in Montana. This is critical at the Federal level in addition to our legislative candidates. Another effort that we have this year to increase our membership in GRIP. As you know, MBIA has a safety program for members of MBIA who also use State Fund as their Worker’s Compensation provider. Did you know that if you are a member of MBIA and use State Fund that you can join GRIP free of charge and in addition to participating in their safety programs and jobsite visits, you’re also eligible for an additional dividend from State Fund? It’s surprising to me how few people know this and take advantage of it. If you think you want to participate, contact Sean Lawler in our MBIA office at 406.442.4479. You may be leaving money on the table. We just wrapped up our Fall Business Meetings in beautiful Kalispell. Huge thanks to Jessie Walthers (Flathead EO) and Rocheal Gaston (Direct Source MT) for helping us locally to organize it. We had a great Awards Dinner, where we honored our 2018 Builder of the Year and Associate of the Year. The 2018 Associate of the Year is Krista Smith of Great Falls. And while I highly question the judgment of the committee, the 2018 Builder of the Year is me - Nick Ban. Thank you for the honor of being your President this year. I look forward to hearing from you as to how we can do things better, and I look forward to an exciting year. Thank you,

NICK BAN, MBIA PRESIDENT 1131 Poplar St / Helena, Montana www.edgemarketingdesign.com

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FALL 2018


Learn Learn ways ways to to protect protect your your company company by by ensuring ensuring your your sub-contractors sub-contractors are are obtaining underground locate requests to avoid damage to underground obtaining underground locate requests to avoid damage to underground facilities facilities that that could could result result in in damage damage to to people, people, properties properties and and your your reputation. reputation. For For more more information, information, go go to to Montana811.org Montana811.org or or contact contact Clint Clint Kalfell Kalfell at at (406) 442-3070 or email clint.kalfell@Montana811.org (406) 442-3070 or email clint.kalfell@Montana811.org

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Leif Hallstrom Leif Hallstrom Owner Owner Owner Owner Leif Leif Hallstrom Hallstrom Owner Owner Leif Leif Hallstrom Hallstrom Hallstrom Hallstrom Plumbing Plumbing& &Heating, Heating,Inc. Inc. Leif Hallstrom Owner Owner Hallstrom Plumbing & Heating, Inc. Hallstrom Plumbing & Heating, Inc. Owner Owner Hallstrom Plumbing & Inc. Hallstrom Plumbing & Heating, Heating, Inc. Owner 2900B 2900B Hwy Hwy 2 2 East, East, Kalispell, Kalispell, MT MT 59901 59901 Hallstrom Plumbing & Heating, Inc. Hallstrom Plumbing & Heating, Inc. 2900B Hwy Hwy 22 East, East, Kalispell, Kalispell, MT 59901 59901 2900B MT Hallstrom & Inc. Hallstrom & Heating, Heating, Inc. leif@hphmt.com leif@hphmt.com 2900B Hwy East, MT 2900B Hwy 2Plumbing 2Plumbing East, Kalispell, Kalispell, MT 59901 59901 Hallstrom Plumbing & Heating, Inc. leif@hphmt.com leif@hphmt.com 2900B 2900B Hwy Hwy 22 East, East, Kalispell, Kalispell, MT MT 59901 59901

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(406) (406)756-7473 756-7473 office office leif@hphmt.com leif@hphmt.com (406) 756-7473 office 2900B Hwy Kalispell, 2900B Hwy 22 East, East, Kalispell, MT MT 59901 59901 (406) office leif@hphmt.com leif@hphmt.com 2900B Hwy 2 East, (406) (406)756-7473 270-6574 270-6574 cell cell Kalispell, MT 59901 (406) 756-7473 office (406) 756-7473 office 270-6574 cell leif@hphmt.com leif@hphmt.com 270-6574 cell (406) 756-7473 office (406) 756-7473 office leif@hphmt.com (406) (406)756-7474 756-7474fax fax (406) 270-6574 cell (406) 270-6574 cell 756-7474 fax (406) 756-7473 office 756-7473 office 756-7474 (406) cell 270-6574 cell (406) 756-7473 office (406) 270-6574 756-7474 fax fax 756-7474 fax (406) 756-7474 fax (406) 270-6574 cell 270-6574 cell (406) 756-7474 fax (406) 270-6574 cell (406)756-7474 270-6574fax cell (406) 756-7474 fax (406) 756-7474 fax (406) (406) 756-7474 756-7474 fax fax

3300 2nd Ave. N, Ste 3, Billings, MT 59101 3300 2nd Ave. N, Ste 3, Billings, MT 59101 3300 2nd Ave. N, Ste 3, Billings, MT 59101 3300 2nd Ave. N, Ste 3, Billings, MT 59101 3300 2nd Ave. N, Ste 3, Billings, MT 59101 3300 2nd Ave. N, Ste 3, Billings, MT 59101 3300 2nd Ave. N, Ste 3, Billings, MT 59101 3300 3300 2nd Ave. N, Ste 3, Billings, MT 59101 3300 2nd 2nd Ave. Ave. N, N, Ste Ste 3, 3, Billings, Billings, MT MT 59101 59101

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keasterconstruction@gmail.com keasterconstruction@gmail.com || keasterconstruction.com keasterconstruction.com || 406-781-3020 406-781-3020 keasterconstruction@gmail.com keasterconstruction@gmail.com || keasterconstruction.com keasterconstruction.com || 406-781-3020 406-781-3020 keasterconstruction@gmail.com | keasterconstruction.com | 406-781-3020 keasterconstruction@gmail.com | keasterconstruction.com | 406-781-3020 keasterconstruction@gmail.com keasterconstruction@gmail.com ||| keasterconstruction.com keasterconstruction@gmail.com keasterconstruction.com ||| 406-781-3020 406-781-3020 keasterconstruction@gmail.com keasterconstruction@gmail.comJeff | keasterconstruction.com keasterconstruction.com | 406-781-3020 406-781-3020 Hawkins Jeff Hawkins

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Jeff Hawkins Hawkins Jeff Jeff Hawkins Jeff Hawkins Jeff Hawkins Jeff Hawkins Jeff Hawkins Jeff Hawkins oo 406-728-6785 406-728-6785

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LA A ASALLE ALLE LIGHTING IGHTING A ALLE IGHTING L S ALLE L IGHTING A ALLE ALLE IGHTING AS Your Light House LAA ALLE LHouse IGHTING Your Light House Your Light House Your Light Your Light House Your Your Light Light House House 2590 Highway East Kalispell 2590 2590 Highway Highway 2222 East East ••••Kalispell Kalispell Your Light House 2590 Highway East Kalispell Your Light House (406) 752-2424 •• email: email: fvlite@yahoo.com 2590 Highway 2 East • Kalispell 2590 Highway 2 East • Kalispell (406) (406) 752-2424 752-2424 • email: fvlite@yahoo.com fvlite@yahoo.com Highway 2 East • Kalispell 2590 Highway (406)2590 752-2424 • email: fvlite@yahoo.com 2 East • Kalispell Highway 22 East •• Kalispell (406) 752-2424 ••• email: fvlite@yahoo.com (406) 2590 752-2424 email: fvlite@yahoo.com 2590 Highway East Kalispell (406) fvlite@yahoo.com 752-2424 (406) 752-2424 ••• email: email: fvlite@yahoo.com (406) 752-2424 email: fvlite@yahoo.com (406) 752-2424 email: fvlite@yahoo.com (406) 752-2424 • email: fvlite@yahoo.com Quality Workmanship Quality QualityWorkmanship Workmanship

New Concept Quality Workmanship New Concept Licensed Insured New Concept Licensed Licensed && &Insured Insured Quality Workmanship Quality Workmanship Licensed & Insured New Concept New Concept Quality Workmanship Quality Workmanship Quality Workmanship Quality Workmanship Licensed & Licensed & Insured Insured New Concept New Concept Quality Workmanship Licensed & Insured Coatings , INC New Licensed & Licensed & Insured Insured ,, INC INC Quality Workmanship Licensed & Insured Licensed & Insured Coatings INC New Concept Concept Licensed & Insured Coatings ,,,,, INC INC John “Shag” Darrow INC Coatings INC INC John John “Shag” “Shag” Darrow Darrow 406-327-0374 John “Shag” Darrow ,, INC INC Coatings 406-327-0374 406-327-0374 406-327-0374 INC John Darrow John “Shag” “Shag” Darrow 406-218-8656 Cell John 406-218-8656 406-218-8656Cell Cell John “Shag” Darrow 406-327-0374 John “Shag” “Shag” Darrow Darrow 406-327-0374 406-218-8656 Cell

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ERIC J. ROSET, A.C. ERIC ERIC J. J. ROSET, ROSET, A.C. A.C. ERIC ERIC J. J. ROSET, ROSET, A.C. A.C. ERICpJ. J. ROSET, A.C. A.C. ERIC ROSET, 406.581.5634 ERIC J. ROSET, A.C. A.C. p 406.581.5634 ERIC J. ROSET, A.C. ERIC ROSET, p J. 406.581.5634 eric@rosetassociates.com p 406.581.5634 p 406.581.5634

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FALL 2018

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Mauricio Carbajal Owner Owner Owner Mauricio Carbajal Mauricio Carbajal Owner Carbajaldrywall@gmail.com Mauricio Carbajal Mauricio Carbajal Carbajaldrywall@gmail.com Carbajaldrywall@gmail.com Owner Owner Mauricio Carbajal Carbajaldrywall@gmail.com Owner Mauricio Carbajal Owner Owner Carbajaldrywall@gmail.com Carbajaldrywall@gmail.com Owner (406) 606-2270 Carbajaldrywall.com Owner Carbajaldrywall@gmail.com Carbajaldrywall@gmail.com Carbajaldrywall@gmail.com (406) (406) 606-2270 606-2270 Carbajaldrywall.com Carbajaldrywall.com Carbajaldrywall@gmail.com (406) 606-2270 Carbajaldrywall.com 4 5 6 7 8 9 10 Carbajaldrywall@gmail.com 44 55 66 77 88 99 1010 (406) 606-2270 Carbajaldrywall.com (406) 606-2270 Carbajaldrywall.com 4 5 6 7 8 9 10 Carbajaldrywall.com (406) 606-2270 Carbajaldrywall.com (406) 606-2270 Carbajaldrywall.com Carbajaldrywall.com 10 44 55 66 77 88 99 10 (406) 606-2270 Carbajaldrywall.com (406) 606-2270 Carbajaldrywall.com 44 55 66 77 88 99 10 10 44 55 66 77 88 99 10 10 4 4

Town & Country Electric Town Town & & Country Country Electric Electric

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TownCall & Country Electric “You Us, We’ll Wire You” Town & Country Electric Town & Country Electric “You “YouCall Call Us, Us,We’ll We’llWire Wire You” You” Town & Country Electric Town & Country Electric “You Call Us, We’ll Wire You” Town & Country Electric Town & Country Electric Town & Country Electric “You Call Us, We’ll Wire You” “You Call Us, We’ll Wire You” Frank Dengel Town & Country Electric “You Call Us, We’ll Wire You” Frank Frank Dengel Dengel “You Call Us, We’ll Wire You” “You Call Us, We’ll Wire You” Frank Dengel Owner/Master Electrician Call Us, We’ll Wire You” “You Us, Wire “You Call Us, We’ll Wire You” Owner/Master Owner/Master Electrician Electrician Frank Dengel Frank Dengel Owner/Master Electrician “You Call Call Us,We’ll We’ll WireYou” You” Frank Dengel Frank Dengel Owner/Master Electrician Owner/Master Electrician Residential Commercial Frank Dengel Frank Dengel Frank Dengel Owner/Master Electrician Owner/Master Electrician Residential Residential Commercial Commercial Frank Dengel Residential - Commercial Owner/Master Electrician Owner/Master Electrician Owner/Master Electrician Industrial Owner/Master Electrician Residential Commercial Residential Commercial Industrial Industrial Residential ---- Commercial Industrial Residential Commercial Residential Commercial Industrial Industrial Residential Commercial Residential Commercial P.O. Box 23114 Residential Commercial Industrial Industrial P.O. P.O. Box Box23114 23114 P.O. Box 23114 Industrial Industrial Industrial Billings, MT 59104 Industrial P.O. Box 23114 P.O. Box 23114 Billings, MT MT 59104 59104 Billings, MT 59104 P.O.(406) Box 23114 23114 P.O. Box Phone: 245-7996 Billings, MT 59104 Billings, MT 59104 P.O.(406) Box 23114 Phone: Phone: (406) 245-7996 245-7996 P.O. Box 23114 P.O. Box 23114 245-7996 Billings, MT 59104 P.O. Box 23114 Billings, MT 59104 Cell: (406) 690-2431 Phone: (406) 245-7996 Phone: (406) 245-7996 Billings, MT 59104 Cell: Cell: (406) (406) 690-2431 690-2431 Billings, MT 59104 Billings, MT 59104 690-2431 Phone: (406) 245-7996 Billings, MT 59104 Phone: (406) 245-7996 Fax: (406) 839-2263 Cell: (406) 690-2431 Cell: (406) 690-2431 Phone: (406) 245-7996 Fax: 839-2263 839-2263 Fax: (406) (406) 839-2263 Phone: (406) 245-7996 Phone: (406) 245-7996 Cell: (406) 690-2431 Phone: (406) 245-7996 Cell: (406) 690-2431 info@town-countryelectric.com Fax: (406) 839-2263 Fax: (406) 839-2263 Cell: (406) 690-2431 info@town-countryelectric.com info@town-countryelectric.com info@town-countryelectric.com Cell: (406) 690-2431 Cell: 690-2431 Fax: (406) Fax: (406) 839-2263 Cell: (406)839-2263 690-2431 www.town-countryelectric.com Fax: info@town-countryelectric.com info@town-countryelectric.com Fax: (406) 839-2263 839-2263 www.town-countryelectric.com www.town-countryelectric.com www.town-countryelectric.com Fax: (406) 839-2263 Fax: info@town-countryelectric.com info@town-countryelectric.com Fax:(406) (406)839-2263 839-2263 info@town-countryelectric.com www.town-countryelectric.com www.town-countryelectric.com info@town-countryelectric.com info@town-countryelectric.com www.town-countryelectric.com info@town-countryelectric.com www.town-countryelectric.com info@town-countryelectric.com www.town-countryelectric.com www.town-countryelectric.com www.town-countryelectric.com www.town-countryelectric.com www.town-countryelectric.com

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HEATING HEATING HEATING HEATING HEATING HEATING VENTILATION HEATING HEATING VENTILATION VENTILATION VENTILATION HEATING HEATING HEATING VENTILATION VENTILATION AIR CONDITIONING VENTILATION VENTILATION AIR AIR CONDITIONING CONDITIONING VENTILATION VENTILATION VENTILATION AIR CONDITIONING AIR CONDITIONING AIR CONDITIONING AIR CONDITIONING Darreck Bucher AIR CONDITIONING AIR CONDITIONING Darreck Darreck Bucher Bucher Darreck Bucher AIR CONDITIONING Darreck Darreck Bucher Bucher

Bucher Darreck Darreck Bucher 175 Hutton Ranch Road Darreck Bucher Darreck Bucher 175 175 Hutton HuttonRanch Ranch Road Road Darreck Bucher 175 Hutton Ranch Road Suite 103 #116 175 Hutton Ranch Road 175Suite Hutton Ranch Road Suite 103 103 #116 #116 Suite #116 Ranch Road 175 Hutton103 Ranch Road 175 Hutton Kalispell, MT 59901 Suite 103 #116 Suite 103 #116 175 Hutton Ranch Road Kalispell, Kalispell, MT MT 59901 59901 175 Hutton Ranch Road 175 Hutton Ranch Road Kalispell, MT 59901 103 #116 Suite 103 #116 175 Hutton Ranch Road Suite Kalispell, MT 59901 Kalispell, MT#116 59901 Suite103 103 #116 Suite 103 Suite MT 59901 Kalispell, MT#116 59901 Suite 103 #116 Kalispell, Cell: 406.890.8024 Kalispell, MT 59901 Cell: Cell:406.890.8024 406.890.8024 Cell: 406.890.8024 Kalispell, MT 59901 Kalispell, MT Kalispell, MT59901 59901 Email: darreck.bucher@hotmail.com Cell: Cell: 406.890.8024 406.890.8024 Email: Email:darreck.bucher@hotmail.com darreck.bucher@hotmail.com Email: darreck.bucher@hotmail.com Cell: Cell: 406.890.8024 406.890.8024 Cell: Email: Email: darreck.bucher@hotmail.com darreck.bucher@hotmail.com Cell: 406.890.8024 406.890.8024 Email: darreck.bucher@hotmail.com Cell: 406.890.8024 Cell: Email: darreck.bucher@hotmail.com darreck.bucher@hotmail.com Cell:406.890.8024 406.890.8024 Email: Email: darreck.bucher@hotmail.com Email: darreck.bucher@hotmail.com Email: Email:darreck.bucher@hotmail.com darreck.bucher@hotmail.com

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Q&A

EXPERT ADVICE |

Home Buying in a Hot Market

The housing market in Montana is hot, really hot. Through June 2018, there were 414 reported sales boasting an average sales price of $271,572.50 – and this was just in the Helena area market alone. KATIE LAWLER, AVP

STOCKMAN BANK OF MONTANA Real Estate Lender

Housing statistics reported by the Montana Association of Realtors reflect this trend in the majority of Montana’s major housing markets, with gains in the average sales prices year over year. While the numbers of sales are down slightly to date from 2017 due to lower inventory, prices are clearly still on the rise in this seller’s market. From your perspective, what is driving the currently hot home market? Simply put, supply vs. demand. We continue to see a good number of prepared, qualified buyers who are ready to make that purchase, assuming they can find the right house fast enough. Supply is lower this year than previously, which has created extra competition and multiple-offer situations in that popular $170,000.00 - $325,000.00 price range. These homes tend to sell quickly, leaving many prospective buyers continuing their search and driving up prices for sellers putting their homes on the market. CONTINUED ON PAGE 8

MONTANA HOME EXPERTS

7


| EXPERT ADVICE Do you see the market slowing down anytime soon? Not yet. I believe that price growth may begin to slow, but not stop by 2020, only due to the fact that prospective buyers’ average earnings are not keeping up with the year over year increases in home prices. These significant annual increases are just not sustainable long term. Assuming the economy remains strong, home prices, inflation, and mortgage rates may continue to slowly increase, further restricting affordability, especially for entry level buyers. Speaking of mortgage rates, where do you see those going over the next 12–18 months? Great question! All signs seemingly point to rates continuing to increase, however mortgage rates have remained relatively stable throughout the current buying season. While buyers are paying more attention to mortgage rates than they were 12 – 24 months ago and rates remain historically low, a rate increase is not necessarily a bad thing in a strong economy.

The perception of down payment requirements also keeps many eligible home buyers from pursuing mortgages...49% of homebuyers believe they need to put at least 10% down to secure a home loan, when in fact, many buyers can purchase conventionally with as little as 3% down. Higher mortgage rates could create a more balanced housing market, which would allow a greater number of families to achieve their home ownership goals. In short, more inventory equals more transactions. I think we may see interest rates in the 5% range by the second or third quarter of 2019, which should not greatly deter buyer demand and will hopefully help to stabilize the market. What are the biggest stumbling blocks in the process for buyers? The largest hurdles I see, particularly in the first time

SAVE NOW! With The Good Company Program - An Exclusive Benefit for NAHB Members

home buyer client, are the lack of access to down payment funds and a higher amount of student loan debt. The millennial buyers I see, traditionally, have a strong credit profile, but the rising costs of higher education have created somewhat of a debt challenge. Furthermore, the perception of down payment requirements also keeps many eligible home buyers from pursuing mortgages. According to a 2018 study by Essent Guarantee and Edelman Intelligence, 49% of homebuyers believe they need to put at least 10% down to secure a home loan, when in fact, many buyers

can purchase conventionally with as little as 3% down. Government backed products from Montana Board of Housing can be helpful in bridging the affordability gap when it comes to down payment, however many millennial buyers and young families are beginning to exceed the household income limits set by those programs. Is there something we (as home builders) can do to help smooth out those bumps? Builders have done a great job over the past few years at gauging affordability and keeping their builds at as reasonable of a price point as possible considering rising land and building material costs. If you are building in the median price point range or lower, it is helpful to keep in mind that many of your perspective buyers could be obtaining FHA, VA or Rural Development financing. These products can require extra’s from the builder such as 10-year warranties and the three standard building inspections (footings, framing, final). Knowing your buyer pool upfront can save you considerable headaches in the end.

LEGAL DOCUMENTS NAHB Other Costs CONSTRUCTION GUIDELINES H. Other

$ Cost

Home Warranty Service Agreement $

$275 per home for The Good Company Bundle Package:

• Builder Backed Service Program and • Front Line Warranty Service (Retail $325)

RAPID RESOLUTION

HAND US THE PHONE

Builder Backed Service Program

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Beth Kost

RISK MANAGEMENT SPECIALIST 763.202.3638 | bkost@2-10.com 2-10.com/NAHB 8

FALL 2018


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MWWC MWC #271 MWWC •••• MWC #271 Licensed ••#532 Bonded •••• Insured Licensed ••Owners Bonded Insured MWWC #532 #271 MWWC #532 #532 MWC #271 Licensed Licensed Bonded Insured MWWC #532 • MWC MWC #271 Licensed •• Bonded Bonded •• Insured Insured Licensed • Bonded • Insured Licensed • Bonded • Insured Licensed Bonded Insured MWWC #532 • MWC #271 Licensed • Bonded • Insured Licensed • Bonded • Insured

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OVERAGES? MISORDERS? OVERAGES? MISORDERS? OVERAGES? MISORDERS? OVERAGES? MISORDERS? OVERAGES? MISORDERS? OVERAGES? MISORDERS? OVERAGES? MISORDERS? USEABLE DEMO? OVERAGES? MISORDERS? USEABLE DEMO? USEABLE DEMO? USEABLE DEMO? USEABLE DEMO? Building materials belong in our community, not the landfill. Building materials belong in our community, not the landfill. USEABLE DEMO? Building materials belong in our community, not the landfill. Building materials belong in our community, not the landfill. Building materials belong our community, not the landfill. Building Building materials belong inin our community, not the landfill. Building materials materials belong belong in in our our community, community, not not the the landfill. landfill.

BuildingOur materials belong in our community, not the FREEservice service willadd add value toyour yourservice service by:landfill. FREE will value to by: Our FREE service will add value to service by: Our FREE service will add value to your service by: BuildingOur materials belong our community, not the Our FREE service willin add value toyour your service by:landfill. Our FREE service will add value to your service by: • tracking your tax-deductible donations • tracking your tax-deductible donations • tracking your tax-deductible donations Our service will value service OurFREE FREE serviceyour willadd add valueto toyour your serviceby: by: • tracking tax-deductible donations • tracking your tax-deductible donations Our FREE service will add value to your service by: • tracking your tax-deductible donations • tracking your tax-deductible donations • connecting youto to Missoula’s vibrant reuse community • connecting you Missoula’s vibrant reuse community • connecting you to Missoula’s vibrant reuse community • tracking your tax-deductible donations • tracking your tax-deductible donations Our FREE service will add value to your service by: • connecting you to Missoula’s vibrant reuse community • connecting you to Missoula’s vibrant reuse community • tracking your tax-deductible donations • connecting you to Missoula’s vibrant reuse community • connecting you to Missoula’s vibrant reuse community • connecting you Missoula’s vibrant reuse • connecting youto to Missoula’s vibrantdonations reusecommunity community • tracking your tax-deductible • connecting you to Missoula’s vibrant reuse community Give Matt shout at 406-541-8301 to get started! Give Matt 406-541-8301 to started! • connecting you toat Missoula’s vibrant reuse community Give Matt aa shout at 406-541-8301 to get started! Give Matt a a shout shout at 406-541-8301 to get get started!

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FREE ESTIMATES FREE ESTIMATES FREE ESTIMATES FREE ESTIMATES FREE ESTIMATES FREE •Paving PavingESTIMATES CrackSealing Sealing •FREE ••Crack FREE ESTIMATES ESTIMATES •Paving PavingESTIMATES CrackSealing Sealing •FREE ••Crack PavingESTIMATES CrackSealing Sealing ••Paving ••Crack FREE Patching •••Patching Paving Patching ••Paving Patching Paving Patching Patching •••••Paving SealCoating Coating Seal Patching Patching Patching SealCoating Coating •••Seal Patching SealCoating Coating Seal ••••Patching SealCoating Coating ••Seal Seal Coating Seal Coating • Seal Coating

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Custom Texture, SmoothWall Wall And And Clay Clay Plaster Plaster Loren G Nunau Loren G Nunau Custom Texture, Smooth Owner/Operator Loren G Loren G Nunau Owner/Operator Owner/Operator Owner/Operator Loren G Nunau Loren G Nunau Nunau Loren G Nunau Owner/Operator Owner/Operator Loren G Nunau Loren G Nunau P.O.Box Box6394 6394Bozeman, Bozeman,Montana Montana59771 59771 Owner/Operator P.O. Owner/Operator Owner/Operator P.O.Box Box6394 6394Bozeman, Bozeman,Montana Montana59771 59771 P.O. Owner/Operator Owner/Operator P.O. Box P.O. Box6394 6394Bozeman, Bozeman,Montana Montana59771 59771 1-406-595-2822 1-406-595-2822 P.O. Box P.O. Box6394 6394Bozeman, Bozeman,Montana Montana59771 59771 1-406-595-2822 1-406-595-2822 P.O. Box 6394 Bozeman, Montana 59771 P.O. Box 6394 Bozeman, Montana 59771 lorenkunau67@gmail.com 1-406-595-2822 1-406-595-2822 P.O. Box 6394 Bozeman, Montana 59771 lorenkunau67@gmail.com lorenkunau67@gmail.com lorenkunau67@gmail.com 1-406-595-2822 1-406-595-2822 1-406-595-2822 lorenkunau67@gmail.com lorenkunau67@gmail.com 1-406-595-2822 1-406-595-2822 lorenkunau67@gmail.com lorenkunau67@gmail.com lorenkunau67@gmail.com lorenkunau67@gmail.com lorenkunau67@gmail.com Matthew Tronaas Tronaas Matthew

Matthew Tronaas Tronaas Matthew

Matthew Tronaas Matthew Tronaas Owner Owner Owner Matthew Tronaas Owner Matthew Tronaas Matthew Tronaas Owner Owner email: tronaas.coldironex@gmail.com Tronaas email: tronaas.coldironex@gmail.com Owner Owner email:Matthew tronaas.coldironex@gmail.com email: tronaas.coldironex@gmail.com Matthew Tronaas Owner email: email:tronaas.coldironex@gmail.com tronaas.coldironex@gmail.com Owner (406) 539-6116 (406) 539-6116 email: email:tronaas.coldironex@gmail.com tronaas.coldironex@gmail.com (406) 539-6116 (406) 539-6116 Owner email: tronaas.coldironex@gmail.com (406) 539-6116 (406) 539-6116 email: tronaas.coldironex@gmail.com SITE WORK FOUNDATIONS SITE FOUNDATIONS (406) (406)539-6116 539-6116 email: tronaas.coldironex@gmail.com SITEWORK WORK FOUNDATIONS SITE WORK FOUNDATIONS (406) 539-6116 (406) 539-6116 SITE FOUNDATIONS SITEWORK WORK SNOW FOUNDATIONS UTILITIES SNOW PLOWING UTILITIES PLOWING UTILITIES SNOW PLOWING SITE FOUNDATIONS UTILITIES SNOW PLOWING SITEWORK WORK FOUNDATIONS (406) 539-6116 SITE WORK FOUNDATIONS UTILITIES SNOW PLOWING UTILITIES SNOW PLOWING SITE WORK FOUNDATIONS P.O. Box 403 P.O. Box 403 UTILITIES SNOW PLOWING UTILITIES SNOW PLOWING P.O. Box 403 P.O. Box 403 UTILITIES SNOW PLOWING SITE WORK FOUNDATIONS UTILITIES PLOWING P.O. Box 403 P.O.SNOW Box 403 Belgrade, Montana Montana 59714 59714 Belgrade, Belgrade, Montana 59714 Belgrade, Montana 59714 Belgrade, Montana 59714 Belgrade, P.O.Montana Box 403 59714

P.O. Box 403 P.O.Montana Box 403 403 Belgrade, Montana 59714 Belgrade, 59714 UTILITIES SNOW PLOWING P.O. Box 403 P.O. Box Belgrade, Montana 59714 Belgrade, Montana 59714

Belgrade, Montana 59714

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| MOVERS+SHAKERS

Born to build

KIM CHAMBERS:

By Lacey Middlestead Feature Photos by Wandering Albatross Photography

From walking Miss America runways and wielding nail guns while framing houses to co-owning and operating her own construction business, Kim Chambers is a true Montana woman and an entrepreneurial force to be reckoned with. >


MONTANA HOME EXPERTS

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MOVERS+SHAKERS |

“When (Kim) gets involved, she is non-stop work. Her efforts have made for a better climate for the industry in Montana.” STEVE SNEZEK / MBIA EXECUTIVE DIRECTOR

Chambers, co-owner of Charter Construction in Missoula, still recalls the joy she felt in receiving a nail gun from her father on her 16th birthday. While a rather unconventional sweet 16 present, it marked the beginnings of the building career she would go on to dominate. “I was tagging alongside my father on job sites from the time I can remember,” said Chambers. A Missoula builder and developer since 1969, Chamber’s father is a master craftsman in custom home building. Chambers started learning the ropes of the construction industry early on and through a hands-on approach. From sweeping and cleaning to learning the basics of framing, she worked side by side with her father. Despite letting Chambers assist him on job sites, her father was adamant that the construction industry was “not a place for a lady.” When Chambers began attending Montana State University, she initially pursued a degree in architecture but later switched to pre-medicine with a particular interest in reconstructive heart surgery. Her educational aspirations changed gears drastically however after she suffered the devastating loss of her brother in 1989. In order to help her parents navigate the grieving process, Chambers returned home. While her father took a sabbatical, Chambers stepped in to manage his accounts. It was during this time that she admitted to really falling in love with the home building industry and work. Chambers’ father observed her building strong working relationships with subcontractors and clients and not missing a beat in his absence. While he had originally intended to pass down his business to his son, he came to see how

willing and capable his daughter also was for the job. In 1991, Chambers started her own construction company and began amassing experience and a versatile portfolio. In 2000, Chambers merged her company with that of now husband, Leon Chambers. From entry level houses to exclusive two year builds on recreational property, she never shies away from a challenge. Chamber’s houses include everything from the Spanish stucco look to all out custom timber frame styles. At the end of the day, she knows her job is to take a client’s vision and bring it to life with each board laid and nail pounded. As a woman in a male-dominated industry, Chambers has had to carve her own path to success. “I had to fight through and prove my own,” said Chambers of the beginning of her contractor career. One way she has done this is through building relationships with her clients, especially with first time home buyers. “I am really driven towards building affordable housing,” said Chambers. “I get to help a family get instant worth and better provide for their family.” Chambers shared that she frequently builds multiple times for the same family. Whether it’s a recreational property or a transition into a different house, she is committed to her clients for life. “A rebuild is such a rewarding thank you,” said Chambers. “I love to make lifelong friends with my clients.” Chambers credits her uncanny ability to build such strong relationships in part to her past experience serving as Miss Montana. Traveling around the state and meeting new people prepared her for future career endeavors. In addition to building strong relationships, Chambers also prides herself on continually educating herself on changes and developments in the industry. From building code changes to new techniques, she works to stay as current and knowledgeable as possible. “If you don’t continue educating yourself or understanding what is new and needed in the industry, then we’re depleting the

purpose of being the builders of America,” said Chambers. “Both older and newer builders constantly have to work to keep themselves as updated and educated as possible on advancements in the industry.” But Chambers isn’t satisfied with just keeping herself current. She also takes an active role in the building community at local, state, and national levels. She served two terms on the Missoula Home Builders Association and was the first and currently only female president of the Montana Home Builders Association for a term and a half. She also achieved the title of Life Director for the National Association of Home Builders this past July. From advocating for better educational opportunities for those interested in trade work to fighting regulations that deplete affordable land to build on, Chambers says she tries to be the “spokesperson for the building industry in Montana.” “I paved my way in the industry as an educator and an informed person rather than the little girl that got to take over daddy’s company,” said Chambers. “I think one of the biggest things that Kim has helped educate MBIA members on is that one member can make a positive difference,” said Steve Snezek, executive director for MBIA. “Her hard work and ability to rally people together shows that she did make a difference, and that others can too.” From tromping in muddy boots behind her father as a kid to advocating for Montana’s builders all the way in Washington DC, Chambers continues making strides in the industry she loves. “Kim is always ready to answer the call when action is needed,” said Snezek. “When she gets involved, she is non-stop work. Her efforts have made for a better climate for the industry in Montana.” “This is an industry and environment that I could not imagine myself not being part of,” said Chambers.

MONTANA HOME EXPERTS

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| TRENDING

THE BEST OF IBS AWARDS

INNOVATIVE BUILDING PRODUCTS

The companies listed below vied for the title of the best of the best, in their respective categories at the 2018 NAHB International Builders’ ShowŽ. Category winners and the Best in Show winner were announced at the Best of IBS Awards on January 11, 2018.

BEST IN SHOW AeroBarrier by Aeroseal LLC What the judges said about AeroBarrier: + After seeing this product in person, I was even more impressed than I was initially. It appears to be a very viable product for air sealing a home for those looking to create a tighter home than other possible methods. + A true game changer, time-saving and solves a lot of potential issues for both single-family and multi-family builders. + With minimal training, building company employees can use the product themselves. + Building upon proven technology developed by the Dept. of Energy, this aerosol envelope sealing system simultaneously measures and seals building envelope air leaks. Pretty amazing!

BEST HOME TECHNOLOGY PRODUCT Onelink Safe and Sound Smoke/CO Alarm by BRK Brands, Inc. + Intelligent 2-in-1 Smoke and Carbon Monoxide alarm sends alerts to mobile devices, and tells you the type and location of emergency in your home. + High-end speakers provide immersive, omni-directional audio with crisp vocals and powerful bass; noise-cancelling microphones hear you from any direction, even while playing music. + With built-in Alexa Voice Services, Onelink Safe & Sound can play music, news, or audio books; hands-free voice commands let you control smart home devices, lights, locks, and more.

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BEST HOME INDOOR LIVING PRODUCT Home Automation Hub by Eaton Eaton’s home automation hub is a powerful gateway for your connected home. With a single app, it puts automation and energy management a touch away. The hub also allows homeowners and installers to integrate a variety of other popular smart home devices such as Nest thermostats, Amazon Echo, Kwikset locks, as well as security systems. By integrating the control of these various devices into a single app, we help simplify home automation experience for the homeowners.

BEST WINDOW & DOOR PRODUCT VELUX Active with Netatmo A healthy indoor climate is not something you can see, but feel: you’ve got more energy, can breathe deeply, sleep soundly. Today, with up to 90% of our time spent inside, maintaining good indoor air quality is more important than ever. That’s why the VELUX Group and Netatmo have worked together to bring you the first smart automated control of roof windows, blinds and shutters, delivering a healthier home for you and your family.

BEST KITCHEN PRODUCT

BEST BATH PRODUCT

Artis WallTM

Precision Frameworks Easy Frame®

Bill Kimmerle, President/CEO of Waddell Manufacturing, had this to say about the award: “Reclaimed wood is a popular trend in home décor. Artis Wall™ brings an authentic, reclaimed wood wall covering product, to the consumer in the easiest way possible. Our patented Velcro installation method makes installation extremely simple, while also being removable and reusable without any damage to the wall. It won’t even hurt your paint upon removal. This is the first time something like this has ever been possible! We are excited to bring this art on the wall product to the kitchen area and add a warm décor to a functional space.”

Precision Frameworks Easy Frame®, is a flat backed molding that does not have a rabbet. Easy Frame® is designed for mirrors that are already installed on the wall and is basically a wooden framed version of a bevel strip. It can be used to cover up the black edge that mirrors may have incurred over time, or if you simply want to improve the look of the mirror and turn it into a seemingly high quality framed mirror. The Easy Frame® is installed with an industrial strength double sided tape and adheres directly onto the face of the mirror. All of the frames are precut to the custom size that is required. . MONTANA HOME EXPERTS

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FALL 2018


FROM THE EXECUTIVE DIRECTOR |

2019 LEGISLATURE: MBIA READY TO DEFEND AFFORDABILITY

By Steve Snezek MBIA Executive Director 2019 is shaping up to be an incredible year in the Montana Home-Building Industry! We haven’t seen this much activity since 2007, and with the economy clipping along nationally, and locally, it looks to continue. But with a caution from the Bible – save during the “fat years,”for when the “lean years” come. MBIA has had a great year as well! We’re excited to bring on our President, Nick Ban, for 2018-2019, as well as our new Vice President, Tom Stringham, and our new 2nd Vice-President, Rob Martin. This leadership team looks to guide us through what promises to be a hectic election season this fall, as well as a productive legislative session starting in January 2019. 2018 Elections – If there’s one overriding message this Election year, it is GET OUT TO VOTE. As we are reminded every election, but especially from 2016 – elections have consequences. The most recent election is one of the major reasons why the economy is humming along nicely, and why

most of you barely have time to read this magazine. Get out to vote – get your family out to vote – get your employees and sub-contractors out to vote. At the top of the ticket this fall is the race for U.S. Senate – incumbent Senator Jon Tester (D-Montana) vs. State Auditor Matt Rosendale (R-Montana). BuildPAC has contributed $5,000 to Matt Rosendale in this race, and the MBIA Board of Directors has voted to officially endorse Matt Rosendale for U.S. Senate. This race will be determined by turnout – so again, GET OUT TO VOTE. Also at the top of the ticket is the race for U.S. Congress – incumbent Representative Greg Gianforte (R-Montana) vs. Kathleen Williams (D-Montana). Your BuildPAC has contributed $5,000 in the primary to Rep. Greg Gianforte, and another $5,000 in the general election, another bigly important race to our industry and our economic well-being. BuildPAC is also making decisions on contributions to MT Legislative candidates. While I don’t expect the legislative mix of Republicans to Democrats to change much in the big picture, it is critical that we work to elect pro-business legislators from both parties. Get out and meet your local legislators and candidates. Volunteer to help. Volunteer to put up a yard-sign at your home and/or job site. In local races, these small efforts make a big difference….and the candidate will remember that you have helped. January 2019 brings us the start of the legislative session. MBIA is currently looking at legislation to: help with Affordable Housing; restricting the use of ineffective and cost-increasing inclusionary zoning; define the term “habitability” in the application of warranties; and examining the

parameters on municipalities us of “emergency powers.” In addition, we know that we will be facing regulatory restrictions and cost-increasing measures that we will need to fight. This legislation is still being drafted and discussed within MBIA. If you’d like to get involved in these discussions, please contact us at MBIA or get involved in your local Government Affairs Committee. 2018 brought about change in the MBIA office. As you’ll recall, long-time Business Manager Nancy Rae retired in April of 2017. We brought in Phoebe Williams, who did a fantastic job for us – but has just left to become the Deputy Chief of Staff for Montana Superintendent of Public Instruction, Elsie Arntzen. Phoebe did a great job for us, and we are sad to see her leave…especially so soon. However, starting August 1 will be the new Business Manager and Communications Director for MBIA – Lisa Pocha. Lisa is a

Helena native, and has extensive experience in association work. She was the Membership Service Director for the Montana Association of Realtors, and then served in the same role for the Montana Medical Association. We are excited to bring her on board to help us as we grow your association, and look to provide even more benefits to you and your business. In closing – we face many challenges ahead. While the economy is booming, there are things that are holding us back – softwood lumber tariffs, the all-too-slow rollback of burdensome regulations, lack of an available and qualified workforce, and ever decreasing supply of buildable lots, just to name a few. Keep these things in mind as you make your voting decisions this fall. But overall, as I start my 3rd year with this vibrant and diverse association and industry, I’m excited for our future, and I hope you are too.

“ As we are reminded every election, but especially from 2016 – elections have consequences. The most recent election is one of the major reasons why the economy is humming along nicely, and why most of you barely have time to read this magazine. Get out to vote – get your family out to vote – get your employees and sub-contractors out to vote.” MONTANA HOME EXPERTS

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| MBIA MEMBERS

Montana Building Industry Association INNOVATORS

ASSOCIATION STANDOUTS VISIONARIES

TRAILBLAZERS

TERRITORIAL LANDWORKS PELLA WINDOWS OUR MEMBERS MAKE US PROUD By Lacey Middlestead

HAVE AN OUTSTANDING MEMBER TO NOMINATE? Contact Lisa Pocha, MBIA Business Manager/Communications Director 406.442.4479 or lisa@montanabia.com

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TERRITORIAL LANDWORKS “Partnering to Build Better Communities,” is more than just a tagline for Territorial Landworks, Inc (TLI). It is also the philosophy by which the company operates each day. Missoula Food Bank Site Design

Butte Multi-Phased Vaulted Sidewalk Reconstruction

Fishmore Associates Site Design

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Missoula, Montana

WEBSITE

www.territoriallandworks.com

PHONE

406.721.0142

This Montana-based company was formed in 2007 after a merger between Territorial Engineering & Surveying, Inc. and Landworks Consulting & Design, Inc. Today the company operates as a civil engineering, surveying, and land use consulting company specializing in public and private sector land use and community development projects throughout Montana, eastern Washington and western North Dakota. Since its creation, TLI team members have remained actively involved with the Building Industry Associations in the

markets they serve. Kolten Knatterud, firm partner, serves on the board for the association in Billings and Paul Forsting serves on the board in Missoula. TLI is also a member of the Flathead Builders Association. TLI understands how important it is to create professional partnerships with others in the industry as well as support an organization that works to protect and promote the building industry for all. But TLI’s community involvement extends well beyond the confines of its own industry. The staff at TLI also enjoy participating in events that benefit local communities and non-profit organizations. From food drives and chili cook-offs benefiting the Missoula Food Bank to hosting staff development meetings at local businesses and playing on city league sporting teams, TLI is committed to giving back and helping strengthen

communities across Montana. A few weeks ago on September 12, TLI was awarded the Circle of Excellence from the Missoula Chamber of Commerce during their annual banquet. This award is the Chamber’s most prestigious award given to a business that meets high standards of community involvement and social responsibility. TLI was honored to be recognized and graciously accepted the award. Among the core values that guide the continued growth and development of TLI is collaboration. Whether it is collaboration with other professionals in the industry or collaboration with the people and businesses in the Montana communities they work in, TLI understands that teamwork, mutual respect, and support of others is essential to the company’s continued success in the building industry. CONTINUED ON PAGE 20

MONTANA HOME EXPERTS

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| ASSOCIATION STANDOUTS

PELLA WINDOWS, GREAT FALLS Les Bruner, sales representative for Pella Windows in Great Falls, spends his days consulting and building relationships with clients and contractors about their window needs.

LOCATION

Great Falls, Montana

WEBSITE

www.pella.com

PHONE

406.216.3131

Bruner explained that Pella Windows is considered one of the “Big 3” window manufacturers. The company was founded in 1925 by Pete and Lucille Kuyper in Pella, Iowa and quickly built a reputation as an innovator after the debut of their Rolscreen windows. Since joining the Pella team, Bruner has worked diligently to stay informed on not only the products Pella offers but on the industry as a whole.

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FALL 2018

“I’m really fluent in what we offer,” said Bruner. When consulting with a builder or home owner, Bruner focuses on educating the client and presenting all the options available depending on their needs. Bruner said he has spent upwards of two hours in a consultation before discussing things like window efficiency, upgrades and budget products. He works to ensure that his clients have all the information they need to make an informed decision about their windows. “We try to offer solutions to everyone’s projects,” said Bruner. In always trying to stay on top of his profession, Bruner shared that he has also been actively involved with the Home Builders Association of Great Falls (HBAGF)

since the late 1990s. While he originally joined the association while working for a different company, Bruner continued his involvement after joining Pella Windows. He shared that his experience with the association encouraged him to focus on building relationships. “It’s a huge opportunity to meet all kinds of people—not just contractors,” said Bruner of being part of HBAGF. “You also meet all entities within the building industry.” From Bruner’s membership with HBAGF to his commitment to staying on top of industry trends and changes, he has truly found his professional forte. “I got more involved because I’m so passionate,” said Bruner. “It comes back to passion. It’s always been worth it to me.”


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MONTANA HOME EXPERTS

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INSIGHTS |

THOUGHTS FROM A FRESHMAN LEGISLATOR By Rep. Sue Vinton R-Billings One of Montana’s greatest features is its “Citizen Legislature.” As a freshman legislator during the 2017 Session, I had the honor and privilege to serve the citizens of Montana in the People’s House. Like many legislators, I have a varied background, which includes 15 years as a litigation paralegal and over 10 years as co-owner of Vinton Construction, Inc. As the saying goes, “I have signed both sides of a paycheck.” I was fortunate to serve on the House Business and Labor Committee which is where I quickly learned the bulk of a legislator’s work is done. We heard many bills in that committee on a variety of subjects, from 19 liquor-related bills to bills regarding workplace safety, health insurance and wages. It was helpful for me to remember my days as an employee, as well as the many challenges encountered as an employer and owner of a business. My paralegal experience was helpful too, as I utilized fact-finding skills to gain information that helped me in making informed decisions on a variety of subjects. I believe in supporting businesses with the least amount of government intervention and regulation. As we listened to bills in House Business and Labor, I was always aware of how a bill might impede or support a business, and the effect it may also have on the business’s employees. One bill in particular would have created additional regulations on construction companies performing storm damage repairs. While the intent of the bill was to protect consumers from unscrupulous out-of-state “storm chasers”, it also created insurmountable and untenable provisions for legitimate businesses. That bill was an example of a good idea that became a bad bill, and it was rightly voted down in our committee. I also served on the Education Committee where I sponsored a bill to fund Career and Technical Education (CTE) in our middle schools. As the owner of a construction company, I have experienced, and heard from many sub-contractors, regarding the challenges of finding qualified employees to help our businesses grow. I have become passionate about CTE and I feel that this program of study is important for two reasons: first, CTE provides students who

may not see an academic path in their future with career opportunities that they may not otherwise be exposed to; secondly, CTE provides skilled tradespeople in the future. While our CTE bills were not ultimately successful due to funding, they were well received by both sides of the aisle and I intend to continue supporting vocational training opportunities for our young students. As the owner of a construction company my working days are fast and varied. Often-times unexpected events occur that cause the plan for a day to change dramatically. House floor sessions were similarly fast and furious. My work experience served me well when I needed to quickly assess unexpected changes to bills that might dramatically alter their

original intent. Above all, as in any business, good communication was a necessity. Whether I was seeking information from fellow legislators, lobbyists, or industry experts, or interacting with special interest groups and constituents, open and honest communication was of utmost importance. I often described the House floor as a room of 100 class presidents. While at first it was intimidating to stand in support or opposition of a particular bill, I learned that speaking from experience and with knowledge gained through my work, gave credibility to my words. In almost every case disagreements remained respectful, and while it was disappointing to sometimes fail to persuade others to see things my way, the experience I gained as a freshman will be put to good use in the 2019 Legislative Session!

“ I often described the House floor as a room of 100 class presidents. While at first it was intimidating to stand in support or opposition of a particular bill, I learned that speaking from experience and with knowledge gained through my work, gave credibility to my words.” MONTANA HOME EXPERTS

23


| LEGISLATURE

NAHB GOVERNMENT AFFAIRS UPDATE, FALL 2018 TRADE

SOFTWOOD LUMBER America’s residential construction industry needs a stable and affordable supply of softwood lumber, wood most commonly used for wood-frame residential construction. U.S. domestic timber production is not sufficient to meet demand. In 2017, the United States consumed 47.62 billion board feet but produced only 33.86. Of the 15.18 bbf shortfall in 2017 (factoring 1.42 bbf in exports), Canada provided 14.17 bbf, or roughly 93%. With the expiration of the 2006 Softwood Lumber Agreement on Oct. 12, 2015 and the addition of new tariffs imposed this year averaging just over 20%, lumber prices have skyrocketed, hitting an all-time high in June of this year. In an effort spearheaded by NAHB, 171 Republican and Democratic members of the House and a dozen Republican and Democratic members of the Senate, sent letters to the Trump Administration calling on the U.S. to resume softwood lumber trade negotiations with Canada. The letters, sent to Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer, do not take sides in this trade dispute. They simply highlight the need to come to an equitable solution that will satisfy all sides. NAHB Chairman Randy Noel, CEO Jerry Howard, and senior staff have also met with Commerce Secretary Ross to discuss the issue. NAHB is looking into the price increase due to tariffs as well as investigating other contributing factors. CHINESE TARIFFS On September 17, President Trump announced he is moving immediately to impose 10% tariffs on an additional $200 billion worth of Chinese imports, including $10 billion of goods used by the home building industry. This 10% levy represents a $1 billion tax increase on residential construction. Making matters even worse, the tax hike will rise to $2.5 billion on January 1, 2019 when the president said the tariff rate will jump to 25% if the two nations have not resolved their differences by year end. Trump has vowed to place tariffs on an additional $267 billion worth of imports depending on China’s retaliatory actions — a move NAHB has strongly opposed. NAHB continues to work on all fronts to find solutions that will ensure a lasting and stable supply of lumber imports into the United States at a competitive price. 24

FALL 2018

WOTUS

In June, the Environmental Protection Agency and Army Corps of Engineers submitted a new proposed “Waters of the U.S.” (WOTUS) regulatory definition to the White House Office of Management and Budget for review. It is expected to be released sometime before the end of the calendar year. Meanwhile, recent ruling by the U.S. District Court for South Carolina means that for the foreseeable future, roughly half of U.S. states will be abiding by one set of rules pertaining to waters of the United States while the rest will abide by different rules. This decision leaves the regulated community in a state of disarray. Other courts have previously enjoined, or prohibited, application of the Obama Administration’s 2015 WOTUS rule. In 24 states, the 1986 definition of “waters of the United States is applicable. In the remaining 26 states, the 2015 WOTUS rule defines the term “waters of the United States.” Meanwhile, EPA is trying to finalize another 2017 proposed rulemaking that would finally repeal the 2015 WOTUS rule and temporarily replace it with the original (1986) regulatory definition of WOTUS. According to EPA’s current regulatory agenda, the rule repealing the 2015 WOTUS rule is expected to be finalized by November of this year. Moreover, the Trump Administration’s proposed version of a new regulatory definition of WOTUS is consistent with the president’s guidelines contained within his executive order on this issue is expected by October.

FINANCIAL SERVICES

GSE REFORM NAHB recently joined a coalition of 30 trade associations in the real estate, lending and home building industries to urge Congress and the Trump administration to lock in recent reforms to Fannie Mae and Freddie Mac and take the status of these GSEs out of limbo. While changes put in place during the Great Recession “have better positioned the GSEs to continue to play a vital role in facilitating mortgage liquidity,” the reforms are still considered temporary, and “thus the stability of the housing market is more illusory than appearances may indicate,” the letter said. “There is a pressing need to ensure that existing progress is cemented rather than cast aside.” Coalition members emphasized the importance of “consistent, affordable credit to borrowers across the nation...

broadly available through responsible lenders operating in the single-family and multifamily market.”

IMMIGRATION

In July, NAHB welcomed the introduction of the H.R. 6536, the Workforce for an Expanding Economy Act, which establishes a new, market-driven visa program to allow workers in occupations that do not require a college degree to do year-round, non-farm work. The bill is sponsored by Representatives Lloyd Smucker (R-PA) and Francis Rooney (R-FL). The bill would create a new H-2D visa category for “lesser skilled” workers. In periods of high economic growth and low unemployment, the number of available visas would increase; correspondingly, in times of economic contraction or recession, the number would decrease. The bill requires an employer to apply for authorization by the federal government to hire a vetted H-2D visa-holder. All participating employers will be required to use E-Verify. The establishment of a new employment visa category that allows workers to enter the U.S. to work year-round in industries such as construction is a long-overdue step to put lesser-skilled sectors on equal footing with the agriculture and high-skilled sectors that already benefit from their own guest worker programs. A market-based visa program would complement the construction industry’s ongoing domestic recruitment and training efforts and help fill labor gaps to ensure a workforce that can meet the nation’s housing construction needs. Establishing a legal pipeline for foreign labor to enter and work in the United States would also help to shrink the informal economy and support continued economic growth. It is unlikely the bill will progress through Congress in the narrow window of time between the midterm elections and yearend adjournment, but NAHB is encouraged that legislators’ attentions are increasingly turning to the urgent labor needs of the construction sector in the context of immigration reform.

JOINT EMPLOYER

On September 14, the National Labor Relations Board (NLRB) published a notice of proposed rulemaking to amend the definition of what constitutes a joint employer under the National Labor Relations Act (NLRA), thereby resolving the NLRB’s controversial 2015 decision in the


case of Browning-Ferris Industries that radically expanded the traditional test for establishing joint employment of a worker between two businesses. In a press release, NLRB said that under its proposed rule, “an employer may be found to be a joint-employer of another employer’s employees only if it possesses and exercises substantial, direct and immediate control of the essential terms and conditions of employment.” Indirect influence and contractual reservations of authority would no longer be sufficient to establish a joint-employer relationship. NAHB believes regulatory action by the NLRB to restore and codify the traditional definition of joint employment in which a company must exercise “direct and immediate control” over a worker in a business-tobusiness relationship is a necessary and important step in the right direction. NAHB plans to submit detailed comments in support of the proposal, and is urging the Department of Labor to issue a complimentary rule that would similarly enshrine the “direct and immediate control” definition under the Fair Labor Standards Act (FLSA).

TAX

Earlier this month, the House passed their long-anticipated package of tax changes intended to build on the enactment of last year’s Tax Cuts and Jobs Act (TCJA). Known as Tax Reform 2.0, it is actually a package of three bills. The Protecting Family and Small Business Tax Cuts of 2018 (H.R. 6760) would make permanent the provisions of the TCJA that are scheduled to expire on December 31, 2025. This includes making permanent: • the new Section 199A 20% deduction for pass-through businesses • the increased AMT exemption amount • the new $750,000 cap on the mortgage interest deduction • the $10,000 limit on the deduction of state and local taxes (SALT) • the lower marginal tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%

• the increased standard deduction ($12,000 singles, $24,000 couples) • the repeal of the overall limitation on itemized deduction (Pease limitation) • The Family Savings Act of 2018 (H.R. 6757) focuses on promoting individual and retirement savings. Notable changes included in this bill would give small businesses a more cost-effective means to offer employees retirement savings plans through the creation of Open Multiple Employer Plans, which is a change NAHB has supported. Also, families that have Section 529 savings plans for higher education would be permitted to tap into those funds to cover costs associated with apprenticeships. And the bill includes a new savings program known as Universal Savings Accounts (USAs), which would allow individuals to save up to $2,500 a year on a pre-tax basis. Distributions from a USA could be taken for any purpose, giving individuals a simple, tax-free savings vehicle, which could benefit younger home buyers saving for a downpayment. The American Innovation Act of 2018 (H.R. 6756) would provide start-up businesses with new tax benefits. The bill would expand the Section 195 deduction for certain start-up costs and provide an exception to current rules that limit the use of net operating losses and certain tax credits when there is an ownership change and when a start-up business engages in additional rounds of financing. The Senate, however, has indicated that it will not consider these bills prior to the midterm elections.

HOUSING AFFORDABILITY

FAA BILL INCLUDES KEY HOUSING AFFORDABILITY PROVISIONS The House has passed a five-year Federal Aviation Administration (FAA) reauthorization bill that contains a key provision championed by NAHB that will delay a major building and affordability barrier that would have started in the Pacific Northwest and quickly spread throughout the country. NAHB also posted important wins on the codes side of the ledger that will boost

housing affordability. At issue is a 2016 biological opinion issued by the National Marine Fisheries Service that would have required the National Flood Insurance Program to take the Endangered Species Act into consideration when building and updating flood maps, among a number of other programmatic changes. These requirements would have drastically limited the location and size of development, added red tape and dramatically increased costs. The Federal Emergency Management Agency (FEMA) manages the development of the flood maps at the federal level, and any changes in the rules to creating and maintaining maps would affect the entire country, regardless of the location of the initial Fisheries Service ruling. The intent of the flood insurance program was never to protect endangered species, but to ensure the safety of development in the floodplain. NAHB will continue to work with Congress, and the states that are in line to be immediately affected — Oregon, California and Florida — to ensure that new construction continues to be safe and affordable, and not unnecessarily burdened. Moreover, at NAHB’s urging, the legislation assures that states will be able to receive funds from FEMA if they adopt either of the two latest editions of the relevant consensus-based codes, such as the 2018 or 2015 editions of the International Building Code or International Residential Code. Some lawmakers had urged that funds be made available only if states adopted the most recent building consensus code. NAHB successfully argued that this criteria would be too restrictive and needlessly harm housing affordability. This provision on the two-code cycle has a five-year sunset. In another important win, we also worked with lawmakers to preserve the ability of states to amend the latest building codes to address the specific needs of local communities. This will encourage, through voluntary incentives, the construction of resilient homes, infrastructure and communities. The Senate is expected to pass the FAA reauthorization bill soon.

HOUSING MARKET STARTS MONTANA SINGLE FAMILY HOUSING STARTS YTD 2018*

Missoula

h30.1%

206

Yellowstone

i5.8%

360

Gallatin

i20.5%

696

Cascade

i19.2%

99

Flathead i20.5% 546 Lewis & Clark

i11.3%

195

*Comparison to 2017

MONTANA HOME EXPERTS

25


THE VALUE OF ADVOCACY

$7,500

Add up the dollar value of NAHB services and advocacy victories and you get an average of $7,500 per housing start for a typical home builder. That figure demonstrates just how much value NAHB delivers for members. Below are selected advocacy victories achieved in 2017 that contribute to that number.

$1,600 Suspension of Beryllium Rule $1,200 Reductions in Builder Taxes $700 Protection of Builder Interest Deduction $700 Elimination of Flawed Duct Proposal $1,000 Preservation of Options in Building Codes These numbers represent the value per housing start a typical builder will see in 2018 as a result of key NAHB advocacy victories achieved in 2017. Some members will experience more of these benefits than others.

We Build Communities. valueofnahb.org

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FALL 2018


Through the efforts of the Montana Building Industry Association (MBIA) and the Montana State Fund, a select insurance group of MBIA members has been created. The GRIP program is available to all MBIA members and has saved participating members more than $5.5 million over the past twelve years! FREE SAFETY TRAINING & CERTIFICATIONS Certify your employees for forklift, Powder Actuated Tools, scaffolding and First Aid/CPR. Free monthly 1-hour OSHA compliant safety meetings on a variety of useful topics. Training is hands-on, very informative and is conducted in Through Through thethe efforts efforts of of thethe Montana Montana Building Building Industry Industry nine local association cities. State Association Association (MBIA) (MBIA) and and thethe Montana Montana State Fund, Fund, a a select select insurance insurance group group of of MBIA MBIA members members hashas been been created. created. The The GRIP GRIP program program is available is available to to all all MBIA MBIA FREE and ONSITE members membersand hashassaved savedparticipating participatingmembers members CONSULTATION TRAINING more more than than $5.5 $5.5 million million over over the the past past twelve twelve years! years!

Site specific training needs and inspection of your worksite for Tools, Certify Certify your your employees employees for for forklift, forklift, Powder Powder Actuated Actuated Tools, hazards and/or any potential scaffolding scaffolding andand First First Aid/CPR. Aid/CPR. Free Free monthly monthly 1-hour 1-hour OSHA OSHA compliant compliant safety safety meetings meetings on on a variety a variety of useful of useful topics. topics. OSHA violations. Training Training is hands-on, is hands-on, very very informative informative andand is conducted is conducted

FREE FREE SAFETY SAFETY TRAINING TRAINING & CERTIFICATIONS & CERTIFICATIONS

in nine in nine local local association association cities. cities.

#1#1 Worker’s Worker’s Compensation Compensation Program Program in the in the State State of of Montana Montana

FREE FREE ONSITE ONSITE CONSULTATION CONSULTATION TRAINING TRAINING FREE WRITTEN SAFETY

& HEALTH PROGRAMS

SiteSite specific specific training training needs needs andand inspection inspection of your of your work work sitesite for for hazards hazards and/or and/or anyany potential potential OSHA OSHA violations. violations.

Written safety and health

FREE FREE WRITTEN WRITTEN SAFETY SAFETY HEALTH & HEALTH PROGRAMS PROGRAMS programs that can&be tailored Written Written safety safety andand health health programs programs thatthat cancan be be tailored tailored to fit your company. to fit to your fit your company. company.

Sean Sean Lawler Lawler W:W: 406-442-4479 406-442-4479 | C:| C: 406-459-3955 406-459-3955

Mike Mike Rocchio Rocchio W:W: 406-442-4479 406-442-4479 | C:| C: 406.459.1308 406.459.1308 MONTANA HOME EXPERTS

27


MONTANA’S OWN

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28

FALL 2018

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