Northern Kentucky Builder - March 2015

NORTHERN KENTUCKY

March 2015

The Official Publication of the Home Builders Association of Northern Kentucky

Coming In or Heading Out, Today’s Buyer is Family Focused More on New Homes Market Outlook ... Page 10 www.HomeBuildersNKY.com www.facebook.com/HBANKY

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WHAT’S THIS? Scan the QR code with your mobile device for additional content and relative information. Don’t have a QR code scanner?

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The mission of the Home Builders Association of Northern Kentucky is to promote and enhance the integrity and visibility of the construction industry and the members of the organization through advocacy, communication, education and political action.

Northern Kentucky Builder™ is an official publication of the Home Builders Association of Northern Kentucky, 2751 Circleport Drive, Erlanger, Kentucky 41018. It is published in the interest of the Northern Kentucky building industry and read by home builders, remodelers, general contractors, developers, engineers, bankers, Realtors,® architects, material dealers, subcontractors and manufacturers. All rights reserved. Copying or reproduction without the expressed permission of the Home Builders Association of Northern Kentucky is strictly prohibited. phone 859.331.9500 or fax 859.578.3393 email homebuilders@hbanky.com 2015 Board of Directors Jason Yeager, President James Kegley, Immediate Past President Tom Spille, Vice President Bill Cullen, Secretary/Teasurer Brian Jones, Associate President Jennifer Hennessey, Associate Vice President John Toebben, Land Development Council President Bob Nally, Sales & Marketing Council President Kellie Bailey, Builder Director Joe Halpin, Builder Director Zach Hadden, Associate Director Steve Brunson, Associate Director Brian Schalk, Associate Director Laquinta Strickland, Associate Director

March 2015

INSIDE THIS EDITION...

4 . . ...........................................Letter from Brian Miller 5. . ................................................. Membership Update 8. . .......................................HomeFest Ground Breaking 9. . ....................................................... Around the HBA 10...................................... New Homes Market Outlook 12........................ New Requirements on Non-Competes 14.......................... Remodelers Committee on the Road 15................................... HBA’s First Membership Rally 16...........New Lending Trends Open Doors for Borrowers 20...................................... Members Head to Frankfort 26.......................... Northern Kentucky Building Permits 27.................................................. Calendar of Events

HBA Staff Brian A. Miller, Executive Vice President Janis Beard, Membership Director Melanie Meyer, Director of Shows & Events, Sales & Marketing Shawn Cox, Director of Professional Development Dan Smith, Director of Finance Tammy Gorby, Administrative Coordinator Lindsay Chupek, Director of Membership Writing Stacy Smith Rogers Staff The Home Builders Association of Northern Kentucky is open to the world, visit our web site for up-to-date information on HBA services and programs, including extensive public referral directory to Registered Builders, Registered Remodelers and Associate Members.

www.HomeBuildersNKY.com 03/2015

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You Get Out of It What You Put Into It That one phrase says it all. It’s not just applicable to the association but to life. You never experience real rewards in life without an effort. While you may be able to buy some things in life those things don’t make you successful personally or professionally…you do! The same goes for what you can get out of the HBA. Sure we have insurance programs that save companies substantial dollars but why just let your membership sit on a shelf and collect insurance savings? That is like buying a car with great gas mileage that you never drive or reading a great book by a corporate trainer with zero intention on implementing any of the strategies.

If you aren’t coming out to meet your fellow members, exhibiting at our consumer shows, taking advantage of our discount programs or marketing through our home & garden products you are literally leaving business on the table…business that someone else will be more than glad to take. If you aren’t playing the game in the HBA arena then you can bet someone else is and they are winning! We see it all the time; company owners and decision makers meeting new subcontractors, suppliers and business service representatives at the HBA’s business to business events. Eventually, sooner or later, there is a business transaction. Someone buys someone’s something. If you are not one of the someone’s with your something out in front of the members then you loose.

If you are eventually you win.

Here are a few opportunities to make the next business connection that could be your customer for life a reality: March 12 - Table Top Night Horseshoe Casino Downtown Cincinnati 5:30-8 pm March 20 - 2014 Sales & Marketing Council Awards SMC Awards Northern Kentucky & Cincinnati at the Radisson Hotel Cincinnati Riverfront 11 am – 2 pm March 24 - Membership Rally Come join the Membership Committee and celebrate the new members recruited in February. Bring a prospective new member. The fun begins at 4 pm! @ Oriental Wok – 317 Buttermilk Pike It is true…You get out of it what you put into it. However, what you get benefits your business far more than what you put in. Who knows…you may just meet your next lifelong customer at one of these events. See you there.

Sincerely,

Brian A. Miller, Executive Vice President Home Builders Association of Northern Kentucky

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MEMBERSHIP UPDATES

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MISSING IN ACTION

NEW MEMBER ORIENTATION

If you do business with any of the missing members, please encourage them to get back in the action at the HBA!

New Member Orientation is not only for the new members who are recruited throughout the year, but also for members who have never attended a New Member Orientation. If you have a new representative, encourage them to attend one of these orientations. They will be amazed at the benefits and services the Home Builders Association provide for their members. The next New Member Orientation will be announced soon so watch your mail!

Chuck’s Heating & Air Greater Comfort Heating & Air R.E.M. Construction Trauth Bricklaying

NEW MEMBERS

WELCOME BACK We are truly happy to have your support and membership! The following companies are once again members of HBANKY. Lindsay Construction

C & W Custom Woodworking Steven Cornett 6847 Ashfield Drive Cincinnati, Ohio 45242 513-891-6340 Business: Carpenter Garner Insurance Agency, LLC Jim Garner 7430 U.S. 42, Suite 207 Florence, Kentucky 41042 859-283-5151 Business: Insurance Agency Sponsor: Chris Cook

TW Jones Construction, Inc. Tom Jones P.O. Box 182 Union, Kentucky 41091 859-630-2562 Business: Framing Contractor Sponsor: Rob Stone The Tile Shop Tandy Steelman-Hill 7654 Mall Road Florence, KY 41042 859-746-84553 Business: Tile Sponsor: Jerry Beerman

Rath Construction, LLC Justin Rath 6411 Heck Road Alexandria, Kentucky 41001 859-757-5132 Business: Kitchen Remodeling

GET THE APP

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The HBA has launched a new app to make your experience with us that much easier. Go to the Apple Store or Google Play store and search “HBANKY”. The app has our full list of events and meetings. With a tap load our scheduled events into your mobile device. Experience our home shows, browse our online directory of members. Need a new contractor or looking to schedule a meeting with a new customer? Just tap on their phone number to call them direct! It’s just that easy!

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Reis Concrete Products, Inc. Ready Mix • Concrete Septic Tanks

9522 Alexandria Pike Alexandria, KY 859-635-4157

Rt. 2 269 AA US 27 Falmouth, KY 859-654-6400

Email: concrete02@fuse.net • Fax: 859-635-REIS

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Build Your Savings Potential with NPP Receive discount pricing from the following well-known brands:

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THE FUTURE IN BUILDING

2015 MILLENNIUM CLUB All-Rite Ready Mix Andersen Windows Arlinghaus Builders, LLC Ash Insurance, C.K. Bray Trucking, Inc. Charter One Cutter Construction , Inc. Drees Company Dudley Construction Co., Inc. Ernst Concrete Fischer Homes Florida Tile, Inc. Grant Co./Gallatin Co. Concrete Kelly Bros. Lumber Kentucky Federal Savings & Loan Kentucky FluidAir, Inc. L & N Federal Credit Union Logan Lavelle Hunt Insurance Agency M & W Excavation Co., Inc. Nisbet Brower Regions Bank Sims-Lohman Fine Kitchens & Granite Thelen Associates, Inc. Tri-City Insurance Service, Inc. Tri-State Wholesale Builders Supply VonLehman & Company, Inc. Wiseway Supply The Millennium Club is an elite group of companies whose contributions pay for the refreshments and entertainment at events like the Annual Golf Outing, Tabletop Night, Elk Creek Outing and the Holiday Party.

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EVENTS HomeFest 2015 Triple Crown - The Equestrian – Sponsored by Adam Miller Homes Ground Breaking

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n February 23rd the builders and developer of HomeFest 2015 Triple Crown – The Equestrian – sponsored by Adam Miller Homes held a groundbreaking ceremony in the chilly winter weather. “HomeFest is our most effective way to keep new homes and new home communities in the top of mind for Northern Kentucky. The annual event is attended by thousands of visitors each year as they get to experience the best in new homes and homeownership. We look forward to seeing the magic our builders create in the best selling new home community in Greater Cincinnati. Triple Crown is one of the area’s most prestigious new home communities and continues to please the visitors to HomeFest” said Brian Miller, Executive Vice President of the HBA. This year’s participating builders will create five new homes.

The Drees Company Fischer Homes Maronda Homes Adam Miller Homes Early plans include a mix of two story, first floor master suites and single story homes. Prices will begin in the mid $600’s and range as high as the upper $700’s. HomeFest Triple Crown – The Equestrian – sponsored by Adam Miller Homes will be held August 8th through August 23rd, 2015.

MEMBER MIX & MINGLE PNC MORTGAGE Join us at the SMC Member Mix & Mingle! It’s a great opportunity to network!

Reservations Required by Tuesday, April 7, 2015 Call (859) 331-9500 or e-mail lindsay@hbanky.com 8

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Hosted by

Think outside the box.

FREE EVENT! Appetizers & Beverages

Thursday, April 9, 2015 5:30 - 8 p.m.

PNC Mortgage 2216 Dixie Highway, Suite 100 Ft. Mitchell, Kentucky

AROUND THE HBA

Your Peace of Mind Deserves a Professional HBA Presented With Unique Community Partnership Opportunity

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orthern Kentucky’s first Makerspace will open this spring in Burlington, and your help is needed. The NKY Makerspace will provide a spot where children from across the region can come to learn, play, explore and build. They’ll experiment with everything from high-tech computers, to power drills, hammers and nails.

The project will help build the workforce of tomorrow by promoting STEAM (Science, Technology, Engineering, Arts and Math) learning. The Boone County School district will staff and operate the facility.

NKY Makerspace is a project of the Boone County Education Foundation and Leadership Northern Kentucky Class of 2015.

Sponsorships and mentoring opportunities are also available.

HBA members can become involved through sponsorships and in-kind donations of materials and equipment for the children.

Donations are tax-deductible. Mentoring and other partnership opportunities are also available. Additionally our members will be in a great position to help steer the programming and provide guest speakers around the “construction” component of this community based initiative.

If your company is able to help, please call Project Coordinators Larry Luebbers (859905-5525) or Claire Parsons (859-394-6200).

More information is available at https:// nkymakerspace.wordpress.com/.

Nationwide Advocacy Wins Worth $6,882 per Housing Start in 2014

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dd up the dollar value of NAHB’s advocacy victories and you’re talking real money — an average of $6,882 per housing start for a typical builder in 2014.

This value came out of NAHB services and programs, as well as victories in the legislative, legal and regulatory arenas.

These numbers represent the value per housing start a typical builder will see as a result of key NAHB services and advocacy victories in 2014. The advocacy team leveraged the association’s power to get pro-housing bills introduced and passed in Congress, challenge regulations that do more harm than good, and level the playing field against powerful interests that could do lasting damage to the housing industry.

These NAHB advocacy victories included: • EPA drops post-construction stormwater rule.

• U.S. Supreme Court ruling on Clean Air Act benefits multifamily builders.

• Government delays implementation of some Affordable Care Act requirements.

• Extending the tax deduction for mortgage insurance preserves new home sales.

• Extending energy tax credits stimulates new construction and remodeling.

Land Development Council to Hold March Keynote Opportunity

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n March 18 the Land Development Council invites all HBA members to attend an outstanding keynote presentation by Michael Dinn of Dinn Focused Marketing (DFM). The event is sponsored by Coppage Brother Construction. Two drink tickets and appetizers will be included with your attendance.

DFM President Michael J. Dinn has devoted his career to national housing and community development with an emphasis on market performance, product positioning and alignment.

He was based 10 years in Southern California with national builders and residential finance firms, then the last 17 years in the Midwest.

Michael founded DFM in 2000 to serve regional Clients in homebuilding, project development and community growth, and then was later retained by national Clients to serve more complex initiatives and markets across the country.

During the national market downturn, many financial Clients became the unintended owners of distressed properties while weakened builders and developers faced consolidation.

DFM assembled new market resources and technologies to meet the pace and critical next steps of these market drivers. Over the last four years, DFM has begun to serve the emerging real capital sources, entrepreneurs and leadership, both private and public that will bring our new housing markets forward.

Location: Oriental Wok, 317 Buttermilk Pike, Lakeside Park Time: 3:30 – 5:00 Price: $10 for LDC members, $15 for others (price to join the LDC and save $5 is $0 – you can join at the door)

For more info on why you should only use a member of the Home Builders Association of Northern Kentucky when it is time for a decision about your home call 859.331.9500 or visit www.homebuildersnky.com.

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Sales & Marketing Council New Homes Market Outlook

By Stacy Smith Rogers

Local Experts Weigh In on Trends and Factors that are Anticipated to Affect Home Building in NKY

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s spring gets underway, home builders in Northern Kentucky are eager to answer calls from prospective buyers who are relocating or finally jumping off the fence and planning to build. Local experts detail a few trends and factors that indicate a renewed readiness on the part of consumers to choose to buy new homes in Northern Kentucky ...

Builders Gauge Market Activity for Spring Season Steve Whaley, corporate marketing manager for Fischer Homes, said 2015 is off to a strong start and he believes there are a few other factors that will spur activity. “Rents are continuing to climb, and we see that is something that is going to benefit housing.”

According to Whaley, homeowners can save up to 30 to 40 percent in monthly expenses by owning a home instead of renting one.

“Household formation is picking up and employment is improving,” he added.

Mike Conklin, division president for Drees’ Northern Kentucky Division and HBA Board Member, said the company is expecting a slightly better year in 2015 than it had seen in 2014. “Our budgeting projection will be a 10-15 percent growth. We have a very strong land position in the Northern Kentucky market and a very diverse production offering. We see the biggest gains in the empty nester and move-up buyer segments of the market,” he said.

Conklin attributes his optimism to an increase in consumer confidence and a recovering economy. “We are also seeing some higher paying jobs moving into the market,” he added.

Melanie Millson, a market manager with Drees Homes and SMC Board Member, said there’s an uptick in traffic interested in the Union area. “We’re seeing more relocation buyers than we’ve seen in the past, and we’re having a lot of success with market homes,” she offered.

Mike Kegley, general manager and coowner of The B.O.L.D. Company, has seen an increase in business within the last six-to-eight months and he attributes that to pent-up demand. He said that while permits are still only totaling a third of what they were during the peak, he’s expecting a potential for a new 10

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market of buyers. “There are a lot of people who had to let their homes go back to the bank, and have now had time to repair their credit,” he explained, pointing out that this group wants to return to being homeowners again and if they’ve been able to recover financially, they’ll make up a whole new segment of the market.

What Trends are Builders Seeing?

Conklin noted that the trends in floor plans are more open spaces. “They are moving into open floor plans that highlight the openness in what we call ‘the living triangle,’ This area incorporates the kitchen, family room and dining area into one large open space.” Conklin said that Drees’ architectural designers have developed floor plans that have been very well-received by the market. He also noted that the majority of buyers have been empty nesters and move-up, second- and third-time buyers.

When it comes to newly built homes, Millson said that location and lot desirability are driving their buying decisions, followed by home design and amenities. “Many of them are move-up buyers and have already owned one or two homes. They are looking to fill a need. Sometimes that’s a larger yard or more privacy,” she said.

Whaley said that buyers of new homes with Fischer are preferring open and organized floor plans. “They are looking for extra flex spaces, such as a loft on the second floor or rooms that could be used for multiple purposes. They like open concept plans and a foyer that is organized,” he explained. Whaley said that people are curious about energy efficiency and notice the advantages. Fischer is also having success with buyers with new floor

plans. “We’ve spent the last few years updating and expanding our offerings and focusing on ways buyers can make a home their own.” He noted that kitchens are still a huge focus, and that the transition from being a place to prep food to an entertainment space is an emphasis.

Kegley said The B.O.L.D. Company is predominantly seeing two kinds of customers: families with children who have outgrown their starter homes and empty nesters. Both markets, he said, are willing to pay more for quality. “The families are looking at two stories with first floor masters and kids’ bedrooms upstairs. They are also looking for energy efficiency, air quality and maintenance-free exteriors.” Kegley said that while many empty nesters head south for the winter, he’s noticed a trend in the last three years of this age group wanting to stay home, close to the grandkids.

“While many of our parents went to Florida to retire, many people in this current age group think retirement is overrated.” While the empty nesters are downsizing in square footage, Kegley said they are splurging on amenities, such as Thermador cooktops in kitchens and maintenance-free exteriors.

Many of The B.O.L.D. Company’s customers are requesting energy-efficiency. One of the obstacles that Kegley pointed out is getting appraisals on some of their higher efficiency homes. “The challenge is to find comparable sales. That’s been a bit of an issue that our HBA has been working hard on to educate appraisers,” he noted.

Inventory of New Homes Has Plenty of Room to Grow Bob Nally, sales associate with Coldwell Banker West Shell and president of HBANKY’s Sales and Marketing Council,

reported an upward trend in new homes traffic in Northern Kentucky, although the inventory is way down. “According to the MLS (Multiple Listing Service), 85 new homes have been started and are for sale as far as I can tell. That represents 5.5 percent of what’s available in the single family homes market. I see that inventory building. Nationally, that statistic is about eight percent,” he explained.

Nally noted that sales of homes in Northern Kentucky in general (according to MLS stats) was close to 6,000 in 2014, which was right at where the market was this time in 2007, during the peak. (Of note also is the fact that inventory of homes is 35 percent lower than it was in 2007.) He said that it’s often hard to find a resale home that meets his clients’ needs and he indicated there’s a good likelihood that if buyers are in the price range of being able to afford a newly built home, they’ll go that route. “The ones that are selling are the ones that are in the best condition. Good, clean resale homes are getting harder to find. Once

they see a newly built home, they generally go in that direction. I got out of the predicting business around 2007, but I think there are some opportunities for builders to add to inventories and if they can get a market home started, it could make a big difference.”

“The ones that are selling are the ones that are in the best condition. Good, clean resale homes are getting harder to find.

Once they see a newly built home, they generally go in that direction.”

~ Bob Nally

With a current low inventory of existing and newly built homes on the market, both Drees and Fischer are ramping up building. According

to Conklin, Drees anticipates that 50 percent of its monthly sales will be attributed to inventory homes. At press time, the company had seen a large increase in its January and February market home sales. “With existing home inventory still relatively low in the area, our strategy has been to increase our market homes in order to capture buyers who have sold their current home and need a new home immediately. We have also seen an increase in relocation buyers entering the market as they move into the area,” he added.

Like Drees, Fischer is taking on more market homes in the coming months as well. With baby boomers, Whaley said the company is appealing to buyers who want to live a simpler life and not worry about some of the main responsibilities of homeownership.

“This winter, especially, some of those buyers are wishing they didn’t have to worry about shoveling snow in the driveway.” He noted that Fischer’s low maintenance, “lock-and-leave” condos are attractive to this target market.

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KY Supreme Court Places New Requirements on Non-Competes

By Nick Birkenhauer, Dressman Benzinger LaVelle PSC

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entucky courts have always strictly construed employee non-competition agreements against employers and in favor of employees. This means that any ambiguities, or other questions, in a non-competition agreement will be resolved in favor of the employee. For this reason, it has always been important for Kentucky employers to pay careful attention when drafting non-competition agreements. This is even more true today, in the wake of a 2014 Kentucky Supreme Court case which significantly altered the requirements of employee non-competition agreements in Kentucky. In Charles T. Creech, Inc. v. Brown, 433 S.W.3d 345, (Ky. 2014), the court held that “continued employment” is no longer adequate consideration for employees who are required to sign non-competition agreements. The case marks a significant shift from prior Kentucky case law.

Charles T. Creech, Inc., a provider of hay and straw to farms throughout Kentucky, employed Donald Brown as a driver, dispatcher, and salesman. In 2006, after being employed for sixteen years, Brown was asked to sign an agreement containing non-competition and nondisclosure covenants. Brown did not receive any additional monetary consideration for signing the agreement. Shortly thereafter, Brown was transferred from his position as a salesman to the position of dispatcher, which arguably constituted a demotion due to the decrease in responsibilities and customer contact. Two years later, Brown resigned and accepted a sales position with a competitor, Standlee Hay Company.

After learning that Brown had contacted some of its existing customers, Creech sued Brown and Standlee in the Fayette Circuit Court, seeking damages and injunctive relief.

On appeal, the Court of Appeals upheld the validity of the noncompetition agreement, finding that because Brown had remained employed for two years after signing the non-compete, the agreement was supported by adequate consideration. In so holding, the Court of Appeals was simply reaffirming the long-established rule in Kentucky that continued employment is sufficient consideration for such an agreement.

In a surprising move, however, the Kentucky Supreme Court went on to reverse the decision of the Court of Appeals, finding that the agreement lacked consideration and was thus unenforceable. The court rejected the employer’s argument that continued employment, standing alone, is sufficient consideration to support a non-competition agreement.

The court conducted a lengthy analysis of the two cases relied upon by Creech, Higdon Food Service, Inc. v. Walker, 641 S.W.2d 750 (Ky. 1982) and Central Adjustment Bureau, Inc. v. Ingram Associates, Inc., 622 S.W.2d 681 (Ky. App. 1981). The court distinguished those two cases by noting that the “common thread” between Higdon and Central was that after the non-compete agreement was signed, “the employment relationship between the parties changed.” Creech, 433 S.W.3d at 354. In the case before it, however, the court noted that Brown’s employment relationship with Creech remained stagnant after he signed

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the agreement and throughout his remaining two years with the company.

Brown remained an at-will employee, and he did not receive a bonus, a promotion, a wage increase, or specialized training. “In short,” the court concluded, “Brown received no consideration from Creech in exchange for signing the Agreement or after he signed the Agreement. Therefore, the Agreement is not enforceable.” Creech, 433 S.W.3d at 354.

While the court did not adopt a bright-line test for determining whether sufficient consideration exists in such a case, the court did consider several factors which it found relevant in that analysis: 1. The length of employment both before and after signing the agreement; 2. Whether the non-compete is part of a larger employment contract setting forth other terms and conditions of employment; 3. Whether the employee is threatened with termination for failure to sign the agreement; 4. Whether the employee’s at-will status changes at some point after signing the agreement; and 5. Whether the employee receives monetary consideration or some other benefit after signing the agreement, such as a bonus, raise, promotion, or access to specialized training.

See generally Creech, 433 S.W.3d at 353-54. As these factors indicate, the analysis of this issue is highly fact-intensive, and will vary case by case. There is no bright-line rule.

While Creech probably raised more questions than it answered – questions which will have to be sorted out by the trial courts – one take-away from the case is clear: Kentucky employers can no longer rely on continued employment, standing alone, to support their noncompetition agreements.

3168 CRESCENT AVENUE, ERLANGER, KY 41018 • www.RJINSULATIoN.Com

Remodelers Issues Committee Takes New Programs on the Road

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he Remodelers Issues Committee met February 12, 2015 at the Oriental Wok to take their education and enrichment out into the community. The guest speaker and conversation facilitator was Jay Messner with FSH Strategy Consultants who created a dialogue about transformational leadership. The focus was on reputation and referrals. These two subjects are vitally important to the remodeling industry and have long been the bellwether forms of marketing remodelers depend on to drive business. Ideas were discussed on new ways to generate referrals from social media and new techniques to leave a lasting memory with your customer and your circle of influence.

2015 UPCOMING COMMITTEE MEETINGS AND TOPICS Date

Topic

Time

Location

April 2

Mastering Profitability (Roundtable)

4-6 pm

TBD

May 7

Avoiding Structural Issues – Don Roenker/Simpson Strong Tie

12:00

HBA

June 4

Staffing/Hiring/Outsourcing/Workforce (Roundtable)

4-6 pm

TBD

July 9

Natural Stone – From the Quarry to your Kitchen (Tour)

4-6 pm

TBD

August 6

Upselling/Change Orders/Contracts/Forms (Roundtable)

12:00

HBA

September 3

Estimating (Roundtable)

4-6 pm

TBD

October 1

Lunch & Golf

TBD

TBD

November 5

Vendor Relationships/Partnerships

12:00

HBA

December 3

Planning for 2016

12:00

HBA

For more info on why you should only use a member of the Home Builders Association of Northern Kentucky when it is time for a decision about your home call 859.331.9500 or visit www.homebuildersnky.com.

ALL-RITE READY MIX

“Where Quality and Service Save You Time and Money” Florence, Kentucky 139 Aristocrat Dr. (859) 371-3314 Aurora, Indiana 10513 Morgans Branch Rd. (812) 926-0920 Wilder, Kentucky 108 Williams Way (859) 572-9951 Harrison, Ohio 7466 New Haven Rd. (513) 738-1933 Port Union, Ohio 5259 Rialto Road (513) 860-5111

From left-right, top to bottom: The ladies of the Tile Shop, Shachi Jain, Tandy Steelman-Hill, Crista Boston and Nicki Stamper sponsored the event and sent everyone packing with buckets full of tile oriented goodies and a substantial gift certificate for their products. Thanks Tile Shop!; Mike Phirman, Phirman Enterprises and Past President Bill Butt, Bill’s Remodeling & Electric; Marty Grosser, Grosser & Company Remodeling and Dan Corbin, Corbin Custom Remodelers.

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ACTIVATION HBA’s First Membership Rally

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he 2015 Membership Committee held their first Membership Rally on February 5th at Drakes in Florence. Over 30 members and nonmembers were in attendance. 7 new members were recruited in January and already in February we have 6 new applicants. HBA members who recruit new members will receive $20 in cash per new member at the Membership Rallies. Also, one lucky recruiter will be drawn this year to win a trip to Las Vegas compliments of the Horseshoe Casino and Andersen Windows picking up the airfare. Our next Membership Rally will be March 24th at the Oriental Wok on Buttermilk Pike. The fun starts at 4 pm!

From left-right, top to bottom: Zach Hadden, Pella Windows & Doors; Brian Schalk, Florida Tile; Gus McKinley, Gustin Construction and Cheryl Stegman, Legacy Kitchens; Phil Drees, Terrace Holdings and Bill Kreutzjans, Jr., Ashley Construction; Adam & Mary Perkins, Masterpiece Audio/Video; Bob Lysack, Andersen Windows; January Member Sponsors, Rob Stone, C.K. Ash Insurance; Jason Yeager, HBA President, Ashley Construction and Adam Chaney, Terrace Holdings; Jill Neverovich, DJN Designs; Trina Giles & Don Sullivan, Kelly Bros.; Paul Bogenschutz, Ashley Construction and Jeff Barber, Alluring Glass.

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New Lending Trends, Low Interest Rates Expected to Open Doors for More Borrowers

By Stacy Smith Rogers

New forms and closing procedures on the horizon

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nyone who has closed on a home in the last few years will tell you the process has been grueling, even for borrowers with good credit. While underwriters have been crossing every ‘T’ and dotting every ‘I,’ some borrowers have been wondering if it’s all worth it. However, the process may be getting a little less painful in the near future. Mike Eubanks, Stockton Mortgage and SMC Board Member, reported some positives going on with mortgage lending. “Previously, borrowers had to fit exactly in the box and close the lid, some of them wondering if they would have to give a DNA sample. From a lending trend, however, we’re starting to see some loosening of the guidelines,” he said. Eubanks explained that some borrowers who weren’t qualified this time last year are qualifying now. “Twelve months ago, you wouldn’t see anyone with a credit score below 640 getting qualified.

Underwriters are able to make some common sense decisions now,” he explained. Eubanks said the slight loosening in restrictions should

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“Twelve months ago, you wouldn’t see anyone with a credit score below 640 getting qualified.

Underwriters are able to make some common sense decisions now.”

~ Mike Eubanks

encourage more borrowers who have been working on their credit to qualify for loans this year. He advises HBANKY members to encourage prospective home buyers to get prequalified six months in advance. “I tell them to take a look at what their scores are, so they can have some time to repair them.”

Jennifer Hennessey, Northwest Title and Associate Vice President, explained that interest rates are still extremely low and are expected to stay low well into 2015. She noted

that the FHA has made some changes to their mortgage insurance program that should open the door for new borrowers. Also, she explained there are new forms and closing procedures that are expected to be rolled out August 1, 2015 aimed at streamlining the closing process. According to Hennessey, the initial Truth in Lending document (TIL) will be merged with the Good Faith Estimate (GFE), which is now called the “Loan Estimate.” Additionally, the final TIL will be merged with the HUD-1 Settlement Statement, currently called the “Closing Disclosure.” The closing will be referred to as the “consummation.” She also noted that a three-business-day-wait after the Closing Disclosure has been prepared, approved and delivered to the borrower will be required before closing the transaction. “This will allow the consumer (or the borrower) to more easily compare the costs of borrowing money from various lenders and to be more informed and prepared when heading to the closing table,” Hennessey added.

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State Representative and HBA of Kentucky Past President, Tommy Thompson, addressed the crowd during our issues briefing

Members Head to Frankfort to Advocate on Behalf of Industry

O

n February 11, 2015 over a dozen members traveled to Frankfort to advocate on behalf of your industry at the State Capital. Those members attending represented both the residential and commercial building industries as key members of our newly formed Commercial Council traveled with us. They joined nearly 100 members from around the state who all worked together to impress our issues upon the General Assembly. The day began before 7am as we loaded up at the HBA’s Building Center and headed in our caravan to Frankfort. Meetings began promptly at 9am as our advocates broke up into three groups to visit with all of our legislators.

An issues briefing was held at 10am by the HBA of Kentucky’s President, John Miranda, Louisville, Bob Weiss, HBAK Executive Vice President and HBAK Past President, Representative Tommy Thompson, Owensboro.

After the briefing the groups headed back to legislators offices meeting throughout the day until the General Assembly convened at 2pm. Several issues were discussed with the delegates of the Northern Kentucky Caucus while in our meetings. We were successful in once again holding off a roofers licensure bill (HB 302) and voiced our support of good legislation. HB 240 would set requirements for filing a supersedeas bond for appeals of Circuit Court decisions before the case is transferred to the Commonwealth’s Court of Appeals, helping members that have fallen victim of frivolous lawsuits to recapture lost revenue. HB 288 would establish a First Time Homebuyer income

20

Northern Kentucky BUILDER

03/2015

tax credit, helping first time buyers enter the housing market. As always we were able to report our opposition to perennial issues that appear in the General Assembly every year including HB 256, which would define your subcontractors as employees and HB 294 and its companion SB 95 which would drive up the cost of your workers compensation insurance.

After the meetings the builders from around the state were welcomed on the Floor of the House of Representatives where a respectful citation was offered by Representative Addia Wuchner expressing the importance and appreciation of those in our industry.

In the Senate, Senator John Schickel introduced and passed a resolution extolling the virtues of our industry and appreciation for the men and women who work to make building better. We thank Representative Wuchner and Senator Schickel for their support of our industry and the members who work to support us. Thank you to all who attended this years’ Housing & Building Day at the Capital. We hope many more join in next year to learn how the process in Frankfort works and how your association and those allied associations across the Commonwealth work together to make Kentucky an improving environment for the construction industry.

From left-right, top to bottom: John Toebben, Land Development Council President, Toebben Builders, Jason Yeager, HBA President, Ashley Construction, Ralph Dusing, Bluegrass Commercial Group, Senator Chris McDaniel, Brian Jones, Associate President, C.K. Ash Insurance and Senator John Schickel; Jon Curtin, The Paul Hemmer Company, Ralph Dusing, Bluegrass Commercial Group, Senate Majority Floor Leader Damon Thayer, Brian Jones, Associate President, C.K. Ash Insurance, Jason Yeager, HBA President, Ashley Construction, John Toebben, Land Development Council President, Toebben Builders; Jon Curtin, The Paul Hemmer Company, Ralph Dusing, Bluegrass Commercial Group, Representative Dennis Keene, Jason Yeager, HBA President, Ashley Construction, John Toebben, Land Development Council President, Toebben Builders, Brian Jones, Associate President, C.K. Ash Insurance; Jay Thelen, Thelen Associates, Melanie Meyer, HBA Director of Shows & Events, Senator Will Schroder, James Kegley, Immediate Past President, The B.O.L.D. Company, Bill Cullen, HBA Secretary Treasurer, Cullen Brothers Construction; James Kegley, Immediate Past President, The B.O.L.D. Company, Jay Thelen, Representative Diane St. Onge, Bill Cullen, Secretary/Treasurer, Cullen Brothers Construction

03/2015

Northern Kentucky BUILDER

21

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Northern Kentucky BUILDER

03/2015

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Northern Kentucky BUILDER

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NORTHERN KENTUCKY BUILDING PERMITS SINGLE FAMILY

JANUARY ‘15

MODULAR HOMES

#

#

MULTI FAMILY

#

BOONE

33

$4,664,241.00

CAMPBELL

6

$952,782.00

1

$742,000.00

KENTON

18

$3,246,623.00

1

$1,000,000.00

1

GRANT

2

$310,000.00

MASON TOTAL

CONDOS

#

COMMERCIAL

#

COMMERCIAL REMODELING

#

RESIDENTIAL REMODELING

3

$3,474,000.00

21

$1,121,054.00

52

$871,595.00

13

$197,380.00

$620,709.00

13

$718,371.00

$48

JANUARY ‘14

$8,007,310

0

$0

2

$175,000

1

$2,000,000

0

$0

46

$5,013,944

121

$1,704,641

SINGLE FAMILY

#

MODULAR HOMES

#

MULTI FAMILY

#

CONDOS

#

COMMERCIAL

#

COMMERCIAL REMODELING

#

RESIDENTIAL REMODELING

1

$764,000

2

$13,197,041

21

$4,926,767

53

$610,536

2

$91,043

13

$354,747

1

$12,000

BOONE

23

$3,428,798

CAMPBELL

6

$753,474

KENTON

20

$3,100,031

GRANT

1

$230,000

1

$120,000

TOTAL

51

$7,632,303

0

$0

12

$972,510

1

$764,000

3

$20,184,691

23

$8,783,767

69

$1,068,326

January 2015

48

$8,007,310

0

$0

2

$175,000

1

$2,000,000

0

$0

46

$5,013,944

121

$1,704,641

January 2014

51

$7,632,303

0

$0

12

$972,510

1

$764,000

3

$20,184,691

23

$8,783,767

69

$1,068,326

12

$972,510

1

$6,987,650

2

$3,857,000

CARROLLTON GALLATIN MASON OWEN

26

Northern Kentucky BUILDER

03/2015

1

2

3

4

5 First Aid and Bloodborne Pathogen Class, 2 - 4 pm, HBA

8

9

10

18

19

24

21

26

25

SAM Awards Luncheon, 11 am– 2 pm, Radisson Hotel, Covington

CPR/AED Training Class, 4 - 6 pm, HBA

LDC Keynote Speaker Series, 3:30 – 5 pm, Oriental Wok

23

20

Table Top Night at Horseshoe Casino

Land Development Council Board of Governors, 10:30 am - 12 pm, HBA

22

14

march

17

13

Get the Most Out of Builder/ Remodeler Relations, 10 am - 12 pm, HBA

Sales & Marketing Council, 12 - 1 pm, HBA

16

7

Remodelers Issues Meeting, Noon, HBA Office

12

Lead Recertification, 10 am – 2 pm, HBA

Daylight Saving Time Begins

15

11

6

27

28

3

4

EPA Lead Certification Class, 8:30 am – 4:30 pm, HBA State & Local Government Committee, 12 - 1 pm, HBA

Membership Rally, 4-5:30 pm, Oriental Wok

Executive Committee, 2:30 - 4 pm, HBA Board of Directors, 4 - 5 pm, HBA

30

29

109

$10,130,890

sunday

20

monday

$1,892,162

33 29

$5,585,703 30

2

$310,000

0

$0

5

2

1

31

tuesday 31

wednesday 1

thursday 2

friday 3

saturday 4

Good Friday HBA Office Closed

6

7

8

9

10

11

16

17

18

23

24

25

1

2

Member Mix & Mingle, PNC Mortgage, 5:30 – 8 pm, Ft. Mitchell

13

14 Sales & Marketing Council, 12 - 1 pm, HBA

15

SMC Annual Housing and Economic Outlook, 8-10 am, Holiday Inn Cincinnati Airport

april

12

LDC Board of Governors, 10:30 am - 12 pm, HBA

19

20

21

22

EPA Lead Paint Refresher Course, 10 am - 2 pm, HBA Builder Realtor Bash Meeting, 4-7 pm, NKY Board of Realtors Education Center

26

164

27 State & Local Government Committee, 12 - 1 pm, HBA

28

29

30 Executive Committee, 2:30 - 4 pm, HBA

$17,918,755

03/2015

Northern Kentucky BUILDER

27

PRSRT STD US POSTAGE NO

MEMBER RTH

ERN KENTU

PAID

Y CK

2751 Circleport Drive Erlanger, Kentucky 41018

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