August 2015 Building Business News

August 2015

HBA Year in Review: 2014-15 Confined Spaces Rule Postponed – Page 3 Waters of the U.S. – Page 6 New Overtime Rule – Page 8

Artisan Home Tour: Sept. 12-20 See pages 12 & 13 for a preview of the beautiful custom homes on the inaugural Artisan Home Tour.

The Kansas City Home Builders Association doesn’t celebrate Christmas in July, but the association does recognize New Year in July as the fiscal year ends on June 30th. While planning for the 2015-16 year has already created a busy calendar, this is a good time to reflect on the year just ended. Along with monthly meetings of the Associates Council, Sales & Marketing Council, Parade Committee, Executive Committee and Board of Directors, volunteers also attended Government Affairs, HBA-PAC, Finance, and Nominating Committee meetings. The association’s activities would not be possible without the time and energy of our members and their commitment is greatly appreciated.

This review is a select and condensed

listing of the events KCHBA members took part in during the 2014-15 year.

They did all this while taking care of their primary businesses – of the 4,366 single family residences permitted during these twelve months, member companies built nearly 70% of them – over 3,000 homes for Kansas City families. That activity--building our local community--is the most important one of all.

In the Government Affairs area, volunteers and staff monitored legislation on all levels—federal, Kansas, Missouri, county and city. KCHBA members met with representatives in Topeka at Kansas Legislative Day in January and then travelled to Jefferson City in February to share concerns and priorities with Missouri officials. During the

year, members also met with Senator Pat Roberts (Kansas), and Representatives Vicky Hartzler (Missouri, 4th District), Emanuel Cleaver, II (Missouri, 5th District) and Lynn Jenkins (Kansas 2nd District). The KCBHA’s Political Action Committee reviewed candidates for state and local offices and supported forty-four candidates and issues with contributions totaling $27,450. KCHBA volunteers made personal contact with these candidates in order to facilitate communication between the home building industry and elected officials.

One of the KCHBA’s most important member benefits is education and the 2014-15 year offered classes and seminars on a wide range of topics. Over 30 hours of code credContinued on page 15

www.kchba.org | Volume 21, No. 8 | August 2015

The Kansas City Home Builders Associati 2015 Trade Show and customers in the fall and spring. Contac 2016 Home Show either of these shows.

August Calendar Aug 4 New Member Welcome

The Kansas City Home Builders Association offers two opportunities to reach your customers in the fall and spring. Contact the HBA today to reserve your booth in either of these shows.

Aug 5-7 Certified New Homes Sales Professional Class Aug 20 Lunch, Learn & Earn Credit Class

The Home Builders Association of Greater Kansas City will partner with the Heart of America Chapter of the International Codes Council and Fall Trade Oct 26-30 Johnson County Contractor Licensing to presentShow a Fall – Industry Trade Show at the Contractor Licensing Education Conference, October 26 through 30, 2015. Plan now The Home Builders Association of Greater Ka to place your business, products, or services in front of the most effectively targeted Chapter of the International Council a audience of construction and building purchasing professionals availableCodes in the entire present Fallhave Industry Show at the Co Kansas City metropolitan area. Each day youawill access toTrade a thousand or more different potential customers. ForOctober information26 or to reserve your space, contact through 30,booth 2015.

Plan now to p Kelcee at 816-942-8800 or kelcee@kchba.org.

For more information or to register for any event, go to www.kchba.org or call 816-942-8800

professionals available in the entire Kansas C Home Show 2016: Chip & Joanna Gaines access to a thousand or more different pote are Coming Back! your booth space, contact Kelcee at 816-942

Fall Trade Show: October 26-30

front of the most effectively targeted audien

The 2015 Greater Kansas City Home Show drew a record crowd and we expect 2016 to be even bigger. Don’t miss out on your chance to reserve a premium booth space for the 2016 show – March 18-20, 2016. Applications for booth space are available by contacting Kelcee (kelcee@kchba.org) or phone 816-942-8800.

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BuildersShow. co-location of the NAHB International com for information regarding IBS 2016 Builders’ Show and NKBA’s Kitchen & (kelcee@kchba.org) Kelcee or phone 816-94 or contact Dawn Allen (dawn@kchba.

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August 2015 | Volume 21, No. 8 | www.kchba.org

Enforcement of Confined Spaces Rule Postponed Enforcement of the new Confined Spaces in Construction Standard, issued by the Occupational Health and Safety Administration (OSHA) on May 4, will be postponed until Oct. 2, the agency announced recently. Extension requests indicated that employers needed more time for training and acquiring the equipment necessary to comply with the standard.

Though the ruling will still become effective Aug. 3, OSHA will not issue citations to an employer that is making good-faith efforts to fulfill training requirements and comply with the standard. The agency will consider the following factors when evaluating these efforts:

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• Has the employer trained its employees as required under the new standard, or at least scheduled such training?

• Does the employer have the equipment necessary for compliance, including personal protective equipment?

• Has the employer ordered or arranged to obtain the equipment required for compliance, or taking alternative measures to protect employees from confined space hazards?

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• Has the employer engaged in additional efforts to educate and protect workers when it comes to confined space hazards?

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In general, the new rule requires employers to: • Evaluate the jobsite to identify confined spaces • Develop a written program and permitting system for permit-required confined spaces

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• Control physical hazards and conduct monitoring for atmospheric hazards in confined spaces that are permit required

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• Provide training for confined space entrants, attendants, supervisors and emergency duties.

• Conference room and full kitchen available

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• Close proximity to numerous restaurants

• Convenient surface parking For more information contact: Dawn Allen 816-942-8800, dawn@kchba.org 3

www.kchba.org | Volume 21, No. 8 | August 2015

An International Comparison of Real Estate Taxes

Taking the guess work out of building energy efficient homes.

As a share of total taxes collected, real estate property taxes in the United States are responsible for a relatively high share of total government revenues.

According to statistics produced by the Organisation for Economic Cooperation

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and Development (OECD), the average share of total government tax collections due to real estate property taxes (recurrent taxes on immovable property) was 3.347%. In contrast, for the United Continued on page 5

Property Tax Revenues as Share of Total Tax Collections: 2012

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August 2015 | Volume 21, No. 8 | www.kchba.org

Real Estate Taxes

This month’s tip is:

Continued from page 4 States, the OECD data reflect an 11.35% share.

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The OECD data become less detailed when narrowing down to just residential real estate property taxes, with some nations having limited estimates (including the U.S.). Nonetheless, I estimate that property taxes for owneroccupied housing totaled just under $200 billion and accounted for 4.64% of U.S. tax receipts in 2011 (the residential data are more complete for 2011 than 2012).

According to the OECD, the average share for residential property taxes for reporting nations was just 1.035% for 2011.

These estimates make clear the degree to which the U.S. relies on property tax collections more than other nations.

There are many reasons for this, including the fact that U.S. property taxes are collected by state/local governments.

The U.S. also has an overall lower tax burden than other nations. According to the same OECD data, taxes from all sources made up 24.4% of GDP in the U.S., compared to 33.7% average for all OECD nations.

These numbers are important to keep in mind when some policy analysts make the claim that real estate is undertaxed.

Such arguments, usually made as part of income tax debates, typically ignore the large degree to which state and local government revenues depend on property tax collections (just under 40% of state and local tax collections among major sources at the start of 2015).

Robert Dietz, NAHB Economist Eye on Housing, 7/21/15

Jobsite injuries are inevitable without proper safety policies in place.

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Here are just a few of the books and videos that are available:

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www.kchba.org | Volume 21, No. 8 | August 2015

Update on EPA “Waters of the U.S.” Rule: NAHB says “We Will See You in Court” The Clean Water Act (CWA) of 1972 provided the U.S. Army Corps of Engineers (Corps) and the Environmental Protection Agency (EPA) with jurisdiction to protect certain “Waters of the U.S.” However, the definition of “Waters of the U.S” has been widely debated over the years. In April 2014, the EPA proposed a new regulation expanding federal jurisdiction under the CWA, which could impact development as more waters, including certain streams and ditches, become federally protected and subject to new requirements. This issue is particularly important for the home building industry because as more waters become regulated, more builders and developers will be required to obtain federal permits. The rule will go into effect on August 28 unless other

action is taken.

Statement from NAHB Chairman Tom Woods on Filing Suit Against EPA, Corps on Waters of the U.S. Rule

The U.S. House passed H.R. 1732, the Regulatory Integrity Protection Act, which would require the EPA and Corps to withdraw the proposed rule and create a different one with more transparency, outreach, and oversight. However, the Senate version of the legislation has not yet come to a vote. If no Congressional action is taken, the only avenue to change the EPA rule is through the judicial system.

Tom Woods, chairman of the National Association of Home Builders (NAHB), issued the following statement on the association’s lawsuit filed in the U.S. District Court, Southern District of Texas against the Environmental Protection Agency and the U.S. Army Corps of Engineers seeking to overturn the “waters of the United States” rule that defines the jurisdictional scope of the Clean Water Act:

NAHB filed a lawsuit on July 2, 2015, against the EPA and U.S. Army Corps in order to bring this issue to court. The lawsuit states the EPA has exceeded its authority under the Clean Water Act and the rule must be declared unlawful and set aside.

“Today, NAHB took a stand against the EPA and the U.S. Army Corps of Engineers to fight back against this federal overreach under the Clean Water

Tom Woods Act. NAHB’s efforts to work with the agencies to shape the proposed waters of the U.S. rule into a more workable solution were largely ignored. As such, we had no other choice than to file suit in an attempt to rein in their attempts to exert jurisdiction over virtually every water feature imaginable.

Continued on page 7

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August 2015 | Volume 21, No. 8 | www.kchba.org

Ancient Home Building Along the Dnepr River in Ukraine about 14,00015,000 years ago, a new housing trend began to emerge: mammoth bone huts. Since the dawn of man, home builders have been using the latest technology to improve how they work. And even then, they also believed in resourcing locally — but then, of course, they had no choice.

Wanting to move out of their open-air homes dug into the subsoil, these early home builders began innovating a new hut design. By lashing together the bones and covering it with the hide left over from their mammoth hunts, they could build relatively elaborate homes.

A small hearth in the middle of the hut provided warmth during the night and winter.

As this new style began to catch on, more and more huts were erected by Pa-

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Mammoth bone settlements were typically built atop ravines overlooking rivers, because this was where migrating animal herds were likely to be spotted.

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These early homes may have been smaller than a Manhattan apartment but,

by Paleolithic standards, some of these homes were worthy of a BALA entry.

NAHBNow, 6/15/15

“Waters of the U.S.” Rule Continued from page 6 “The rule leaves the identification of jurisdictional waters so vague and uncertain that our members cannot determine whether and when the most basic activities undertaken on their land will subject them to the Clean Water Act’s permitting requirements. With its broad definitions and expanded reach, EPA’s final rule is so extreme that it will actually regulate certain roadside ditches, isolated ponds and channels that may only flow after a heavy rainfall.

This rule will needlessly raise housing costs and add more regulatory burdens to industries already struggling in a recovering economic environment.

“NAHB is not alone in taking legal action over this excessive regulation. We have joined with a number of other business and agricultural groups in taking this legal action, and the attorneys general of 27 states have filed suit against the rule.

We plan to fight this federal overreach every step of the way.”

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www.kchba.org | Volume 21, No. 8 | August 2015

LOVE WHAT YOU BUILD.

Overtime Rule Could Affect More than 110,000 Construction Supervisors

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The U.S. Department of Labor released a draft regulation on June 30 that proposes updating the salary level at which certain “white collar” workers would be exempt from minimum wage and overtime pay from the current $23,660 to $50,440.

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NAHB economists have released a stateby-state breakdown showing in total, more than 110,000 construction supervisors would no longer be eligible for the exemption, and may be overtime-eligible under this new rule.

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With the Department of Labor acting to more than double this overtime threshold to over $50,000, NAHB and others in the business community argue that such a dramatic surge is unlikely to result in an increase in workers’ take-home pay. Rather, it would force business owners to structure their workforce to compensate by scaling back on pay and benefits, as well as cutting hours to avoid the overtime requirements.

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NAHB, along with our broad-based coalition of business organizations known as the Partnership to Protect Workplace Opportunity, met with the White House last month to express our concern about the impending rule.

There is currently a 60-day comment period that closes on Sept. 4 and NAHB will be submitting a written statement detailing our concerns and opposition to the rule. On July 14, NAHB filed a request for a 90-day extension to the comment period. In addition, NAHB will continue to work with our trade and business coalition partners to seek changes to the rule, and we will also focus on a congressional strategy that will seek to blunt the rule through the appropriations process.

NAHBNow, 7/10/15

August 2015 | Volume 21, No. 8 | www.kchba.org

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www.kchba.org | Volume 21, No. 8 | August 2015

Our Artisan Home Tour Chairman

Artisan Home Tour Committee Provides Leadership

The committee chairman, Dobbe Dobberstine, Dobberstine Custom Homes, provided the steady hand that guided the decisions from start to finish.

Over the years, the HBA has been fortunate to benefit from this award winning builder’s leadership and consummate professionalism. When asked why he agreed to chair the committee, he replied, “The 2015 Artisan Homes Tour sponsored by the Home Builders Association of Greater Kansas City is the first tour of its kind in Kansas City solely showcasing custom builders and at the same time giving back to the community by contributing to the Ronald McDonald House Charities.” He added, “I am so excited to be a part of planning this first time event which will show the public so many of the one of a kind upper end amenities and capabilities of our local custom builders.”

Dobberstine has been helping families build their dream homes in the Kansas City area since 1985. Specializing in the luxury custom market, he and his team build a limited number of homes each year, so that every home will receive all the benefits of architectural distinctiveness, outstanding quality and superior customer service that it deserves.

Seated, left to right: Chris Ragland, Homes by Chris, Dobbe Dobberstine, Dobberstine Custom Homes, Sara Corless, HBA, Craig Eymann, Ambassador Construction Standing, left to right: Justin Pfeifer, Pfeifer Homes, Inc., Brent Dobberstine, Dobberstine Custom Homes, Patrick Willis, Willis Construction Inc., Scott Bickford, R.S. Bickford and Company, Bruce Rieke, BL Rieke Custom Homes.

The Artisan Tour began as a possibility over a year ago and was approved by the board of directors at their July 2014 meeting. A dedicated group of Home Builders Association builder members volunteered year round to provide their leadership to create this first time event.

They kept in mind the priorities including demonstrating to home buyers the quality of custom homes and the skills of the custom home builder. They also emphasized the importance of giving back to the community through meaningful charitable donations.

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The KCHBA appreciates the builders who stepped forward to participate in this event. We can’t wait to see your homes!

August 2015 | Volume 21, No. 8 | www.kchba.org

What Constitutes an Artisan Home?

“What makes a home an Artisan Home?”

Custom home builders know the answer does not lie with a minimum price, square footage, or architectural style.

Rather it lies in the elevated standards of design, superior craftsmanship, and exquisite products. Kansas City’s finest custom home builders know when they are creating a structure that is transcendent for the builder and for the client.

When that mark is met, the home is an Artisan Home.

For the Artisan Home Tour of Greater Kansas City, an architect review process helped ensure the homes met the quality levels. Every builders’ architecture plans were judged individually on their merits by one of Kansas City’s most acclaimed architects, Scott Bickford, R.S. Bickford and Company. Bickford took into consideration the goals for these unique custom home entries while holding the plans to the highest quality standards in nearly twenty categories ranging from exteriors, millwork, windows, and doors to roofing, flooring, furnishings, and landscaping.

Thank you Artisan Home Tour Sponsors

“As an architect I’ve been involved in homes of every imaginable and maybe even unimaginable size and price,” said Bickford. “The homes on this tour aren’t the biggest in town, nor the fanciest or

The elevated standards of the Artisan homes are reflected in this premier event presented by the Home Builders Association. To achieve such quality, some of the industry’s finest suppliers of home products and services have provided their support as sponsors.

These sponsorships exemplify a unique commitment to excellence in custom home building and we thank them.

“The public should expect to see something special at each and every home.” most unusual. To me, what this tour is all about is context and improving the norm. Each builder involved is stepping up their game and building something above and beyond what they normally do. The public should expect to see something special at each and every home.”

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www.kchba.org | Volume 21, No. 8 | August 2015

The Home Builders Association of Greater Kansas City presents the latest addition to the parade of homes family, the Artisan Home Tour, September 12th through the 20th. Showcasing ten of Kansas City’s finest custom home builders and the unique and impeccable qualities of their homes, the tour benefits the event’s charitable partner, the Ronald McDonald House Charities Kansas City. The 2015 Artisan Tour is sponsored by Ferguson Bath, Kitchen & Lighting Gallery, Kansas Gas Service, the Kansas City Star and Spaces, and Country Club Bank. Go to ArtisanHomeTourKC.org for details, links to the mobile app and ticket purchases.

Covenant Custom Homes 16105 Century Street, Overland Park, Kansas

Casa Bella Construction 6069 Southlake Drive, Parkville, Missouri

Don Julian Builders 6049 Southlake Drive, Parkville, Missouri

Ambassador Construction 3848 W 105th Terrace, Leawood, Kansas 12

August 2015 | Volume 21, No. 8 | www.kchba.org

Rodrock Homes 12711 W 160th Terrace, Overland Park, Kansas

Willis Construction 100 Dunhill Court, Village of Loch Lloyd, Missouri

J.S. Robinson Fine Homes 16101 Century Street, Overland Park, Kansas

Lambie Custom Homes 14703 Rosewood Street, Leawood, Kansas

Starr Homes 4741 NW Canyon Road, Lee’s Summit, Missouri

Homes by Chris 10431 NE 106th Terrace, Kansas City, Missouri 13

www.kchba.org | Volume 21, No. 8 | August 2015

Meet the Artisan Builders

Six of the builders participating in the Artisan Homes Tour have been profiled in the Building Business News in previous months. This month we present the final installment in the series.

Rodrock Homes: Dedicated to collaboration Rodrock Homes, which was launched in 2002 by three-generation builder Brian Rodrock and his brothers-in-law, Jeff Gifford and Jeff Reglin, is founded on a philosophy of putting people first and creating homes of lasting value.

Building custom homes throughout the Johnson County area, Rodrock is passionate about listening to each homeowner’s unique vision with the exclusive Rodrock Custom Design Experience program. Comprehensive buyer services are offered from start to finish, including every detail from choosing a floor plan and high-quality, trendsetting interior selections to closing.

Brian notes that he enjoys all aspects of homebuilding. “It’s truly the entire experience, from start to finish. Having grown up in this business with one of the best visionaries when it comes to creating a sense of place through home and community, I am inspired by the unique possibilities at the beginning of every project. How to turn a homebuyer’s dream into a reality, attention to detail, craftsmanship, listening to a client, delivering on time. I always imagine turning the key in the door of a home we have built and seeing it through the owner’s eyes.

Those are the elements of homebuilding that motivate me.”

When asked what defines an Artisan home, he says “it is a rare combination of forethought on the architectural drawing board—designing an exceptional home that will enhance gracious living—and executing that vision with the best, most innovative and cutting-edge materials and quality construction practices.

In the end, an Artisan home is an heir-

loom home, one that can be passed down through the generations, and still maintain its integrity and timeless quality.”

Rodrock Homes is a family-owned and run business dedicated to collaboration and committed to ensuring homeowners’ long-term satisfaction. “It’s more than a family tradition, it’s how we do business,” Brian says. “If you choose to put your trust in Rodrock Homes as your builder, you can look to our team of construction professionals to expertly manage the home design and building process. We build each home as if it were for our own family—that’s how important client satisfaction is to our success.”

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August 2015 | Volume 21, No. 8 | www.kchba.org

J.S. Robinson Fine Homes: Delivering lasting value, innovative plan designs and outstanding customer service Founded in 1988 by Jeff S. Robinson, who still owns and operates the business, J. S. Robinson Fine Homes is a customer-oriented company that has built more than 1300 homes in many of the finest communities throughout the Greater Kansas City area.

What’s the J. S. Robinson difference? They are passionate about building beautiful homes and helping people, and have an unwavering commitment to their loyal customers.

The majority of the J.S. Robinson Fine Homes team and trade partners have been with the company for many years, some for 20 years, through all of the economic variables of the housing industry. Simply put, “We have hand selected an amazing team of employees, vendors, and craftsman, we respect and empower them, and we get superior results,” said Jeff.

Robinson’s commitment to excellence extends to the communities where he builds. He carefully chooses each to ensure that it offers the best possible amenities, a convenient location and excellent schools. A perennial winner for top awards from the HBA during the Spring and Fall Parades of Homes each year, he builds throughout the Kansas City area, including several new-home communities in Overland Park, Olathe, Lenexa and Shawnee.

“At J.S. Robinson Fine Homes, our cus-

New Kansas City Parkway and Boulevard Standards On July 23, the KCMO City Council passed new Parkway and Boulevard standards as put forth by city planner Jeffrey Williams. The Parks and Recreation Department proposed the initial ordinance, but it drew criticism from developers as being impractical and extremely restrictive. The final version, which passed the council 13-0, contained several compromises that address the most problematic issue areas.

The provision most relevant to the home building industry outlines how residential units must be oriented. Houses must front onto boulevards, regardless of location or previous development patterns.

However, when located on a parkway, houses may back the street as long as there is a 60 foot “no-build” buffer zone in place.

The ordinance also includes a transparency requirement that mandates commercial buildings must be 33% transparent on the ground level façade facing parkways and 60% when facing boulevards. Parking is also limited under the new standards. No front parking is allowed on boulevards while buildings on parkways are restricted to one row of front parking and one driving lane.

As far as commercial activity, drive-thru windows must be located on the sides or back of commercial buildings, never in front. Fuel stations will be regulated as well. They are prohibited on boulevards and restricted to intersections with major streets when located on parkways. The gas station must be a minimum of 5,500 square feet and face the arterial street.

Continued on page 13

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tomer’s experience is a top priority to us and one of the reasons we have had over one thousand happy customers,” added Jeff. “We are dedicated to providing our clients with a homebuilding experience that is best in class. From preliminary consultation to the final new home orientation walk-through, we guide them through each step of the building process to ensure complete satisfaction, and also strive to make the process fun.”

Specializing in custom homes in a price range from approximately $400,000 to above $2 million, J.S. Robinson Fine Homes is known for attention to detail, creating lasting value, and innovative design. They are also known for an outstanding customer service and warranty experience.

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www.kchba.org | Volume 21, No. 8 | August 2015

Willis Construction: Committed to Results that Exceed Expectations and their homeowners gladly refer them to friends and relatives.

Their Artisan Tour Entry offers the features today’s homebuyer is looking for – elegance in design, functionality, energy-efficiency and comfort. This estate home is nestled in the woods famously characteristic of the beautiful Loch Lloyd neighborhood. The grand entry, sophisticated living area and spacious sunroom provides a unique cosmopolitan feel that allows for entertaining in a relaxed, natural setting.

Willis Custom Homes can be found in many beautiful neighborhoods throughout the metro.

It’s refreshing for people to have direct communication with Bob and Patrick the entire way through the building process, warranty period and beyond.

Willis Custom Homes…a building team that works!

Willis Custom Homes has made a name for itself in the luxury housing market.

The company is widely recognized as a leader in the industry and creates trends that influence the way homes are built in the future.

Bob Willis started the company over 50 years ago. His son, Patrick, was born and raised in the industry. Patrick is quoted, “I had the good fortune of learning from the best!”

Because they build custom homes and deal directly with their clients, they are on the cutting edge of what consumers desire. “Our clients inspire us every day,” says Patrick.

The Willis team is small enough to pay special attention to each client and are committed to results that exceed expectations! Every home maintains a high quality, luxury feel.

“The typical homebuyer today is very discerning and educated about home ownership,” Patrick says. “We focus our

designs on how people want to live and entertain in their homes.” Their housing styles vary from plans that appeal to growing families to downsizing empty nesters. They work with the top design professionals in the industry to offer flexibility and originality in styles.

T 4

Dedicated to helping you put buyers into homes

P U

Your goal is to turn buyers into homeowners. Our goal is to provide financing to make that happen. So no matter what your client’s home buying goals, we can help you by providing financing options to meet nearly any homebuyer need.

While the company has collected a number of prestigious awards for quality and design, many of their homes also incorporate Universal Design principles. Elevators, zero step entries, wider hallways and doors create a home that is “Fit for Life.” These principles create a comfortable environment for everyone, not just those with physical challenges.

Willis is a CAPS (Certified Aging in Place) certified builder of which Universal Design is a key principle.

Contact your Wells Fargo Home Mortgage branch today.

Northland Office: 816-505-4110 Lee’s Summit Office: 816-329-2109 Overland Park Office: 913-319-7970 KC Bank Office: 913-234-7703

Buyer ConnectionsSM – connects buyers and sellers not already working with a real estate professional to professionals in their local market.

Renovation Office: 913-234-2925

They take great satisfaction in converting a customer’s wish list into reality. A testament to Willis’ reputation is repeat and referral business. They have been asked to build for clients a second time

Information is accurate as of date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2014 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS1055681 Expires 5/2015

16

August 2015 | Volume 21, No. 8 | www.kchba.org

Starr Homes: A Reputation for Integrity, Superior Planning and Quality Construction cannot fully visualize how the home will look when it is completed, so it is our job to make sure that the flow, sizing, function, and lighting of every space is just right for them,” said Kit. From architecture that takes advantage of the land and views, to creating internal living spaces that just feel and function great, to installing engineering and mechanical systems that make the house live better and healthier, to the details on final finishes such as cabinets/trim/appliances, they believe an Artisan home is a home that brings the best quality, design, and value forward.

“We want the process of designing and building a new custom home to be as enjoyable as possible, from the first design meeting to handing over the keys at move-in,” said Kit.

Builders and designers of custom homes in the Kansas City metro area for over ten years, brothers Kit and Gerry Starr of Starr Homes have developed a reputation for integrity, superior planning, quality construction/materials, and saving their clients’ money through energy-efficient building techniques.

Both have unique strengths to help clients realize their dream of a new custom home. Kit Starr triple majored at Graceland College in accounting, construction management, and economics and also has an MBA from Creighton University. Kit’s main role is management over the production of construction.

He ensures the quality, timeliness, and satisfaction of a Starr Homes built home all the way through the closing and warranty.

“Designing a home that ‘just feels right’ every time you walk into a space requires merging function, art-form, and engineering into a practical plan. My

strength is the ability to bring that vision together; pulling from my design and engineering background into a cohesive set of plans,” said Gerry, who has two engineering degrees from the University of Missouri.

Pride in everything we do – even in the work you don’t see.

“I love working with clients and our architects through the custom design process,” he added. “We believe our process and people are the best in Kansas City. Starting with a wish list, a piece of land, and usually some inspirational photos from our clients, we begin to forge the design that meets their needs.

Life is short, you should live it the way you want to and in the spaces that give you the most joy out of them.”

The brothers pride themselves on helping clients achieve all of the functionality, character, and beauty they are seeking in their home – ensuring the design has a great flow and feel to it. “In every home we design we listen very carefully to our client’s needs and wants. Many clients

SERVING KANSAS CITY’S FINEST BUILDERS FOR OVER 30 YEARS.

www.starcompanieskc.com 8320 Westridge | Raytown, MO 64138 | PHONE 816.363.2160 | FAX 816.353.2163 17

www.kchba.org | Volume 21, No. 8 | August 2015

HBA and Ronald McDonald House Charities-KC, A Longtime Partnership The Home Builders Association of GKC is pleased that the Artisan Home Tour is in partnership with the Ronald McDonald House Charities-KC. Proceeds from the ticket sales will benefit this remarkable Kansas City nonprofit organization that provides a “home away from home” while the children are receiving medical care in Kansas City-area hospitals.

This isn’t the first time these two nonprofits have banded together.

The organizations have enjoyed a 34 year partnership. The HBA was there in the beginning when members helped remodel the very first Ronald McDonald House on State Line Road near the University of Kansas Medical Center in 1981. In 1988, the HBA helped RMHC build and open the second home on the corner of 25th and Cherry Street.

And most recently, the Home Builders Foundation Fund made a contribution to the capital campaign for the Wylie House that opened February 2015. A group gathered for a check presentation where Advisory Board Chairman Jeff Alpert, The Alpert Companies, made these remarks.

“There is a reason why we are called home builders and not house builders,” said Alpert. “We create places where families can thrive and grow and enjoy life. And when families are in distress, it is very personal for us. That is why support of Ronald McDonald House is so important to us and why we are honored to be able to support this newest Ronald McDonald House with our contribution.”

Sara Corless, HBA, Jeff Alpert, the Alpert Companies, Holly Buckendahl, Ronald McDonald Charities, Richard Mather, Richard Mather Builders, Dobbe Dobberstine, Dobberstine Custom Homes, Patrick Willis, Willis Construction, Hatch McCray, McCray Lumber and Millwork, Patt Papenfuhs, Ronald McDonald House Charities. berg as the new chief executive officer and she is delighted with the continuation of the relationship. “We wouldn’t have the beautiful facilities we have without the Association being such active sup-

RMHC recently welcomed Tami Green-

porters of our Houses,” said Greenberg.

“We look forward to our continued partnership that makes sure sick kids can have their families by their sides when they need them the most.”

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info@midwestenergyraters.com

August 2015 | Volume 21, No. 8 | www.kchba.org

Year in Review Continued from page 1 it was offered in classes covering framing, systems and interior finishes, window installation, and fire blocking, to name just a few. In addition to offering technical education, seminars were held on economic forecasts, construction law, new home sales (marketing and staging), a construction tax update, and the effects of the new mortgage disclosure rules, among other topics.

The KCHBA’s traditional parade of homes events continued with 307 homes in the Fall 2014 Parade and 340 homes in the Spring 2015 Parade. The industry celebrated at the awards ceremonies for these events, with over 300 in attendance at each. The 2015 Greater Kansas City Home Show drew record crowds to see Chip and Joanna Gaines, the Scout Shack and over 270 booths offering home improvements and services to area

New Kansas City Parkway and Boulevard Standards

consumers. Trade shows also facilitated business-to-business contacts at the Home Show and the Johnson County Contractor Licensing event.

KCHBA members are always eager to participate in networking events such as the Clay Shoot, Golf Tournament and Royals Night. Other opportunities for casual interaction included New Member Welcome events and various meetings held for special topics. The Sales & Marketing Council, Associates Council and Parade Committee all helped support the Ronald McDonald House Charities-Kansas City by providing food for house guests.

Developers Continued from page 11 asked that current projects be exempted from the new standards, to which councilmembers agreed. The ordinance also protects restoration projects from the standards in cases where a building has been damaged or destroyed.

As the housing industry rebounds, the KCHBA continues to increase activities and opportunities to support the members of the association. It looks like 2015-16 will be even busier!

19

The intention of the new standards was to help preserve the beauty of Kansas City’s historic parkways and boulevards.

The compromises put in place after consultation with developers achieve that end while ensuring these areas remain important centers of economic activity.

www.kchba.org | Volume 21, No. 8 | August 2015

Member Anniversaries 1956 The Sherwin-Williams Company 1963 The Alpert Companies 1978 Don Julian Builders, Inc. 1979 Pella Products of Kansas City 1983 Ambassador Construction Co., Inc. 1985 Dobberstine Custom Homes, Inc. 1987 Reilly Homes, Inc. 1988 Factory Direct Appliance, a Ferguson Enterprise 1989 Kansas City Building Supply Co., Inc.

2010 Mike VanKeirsbilck Construction, Inc. 2011 Keystone Building Company McBee Custom Homes, LLC Property Law Firm 2011 WSI Internet Advantage 2012 Braklow Custom Homes, Inc. Cretcher-Heartland, LLC Deffenbaugh Industries, Inc. 2013 Absolute Access & Elevator, LLC

1991 Bank of Blue Valley 1994 A S & W Wholesale of K.C., Inc. 1994 Hoffman Construction, Inc. 1997 Nearing, Staats, Prelogar & Jones, AIA, Architects 2002 Canyon Stone Holmes Drywall Supply, Inc. 2003 Cedar Creek, Inc.

Thanks to These HBA 2015 Sponsors Platinum sponsors

Kansas city Star Spaces Magazine KENNY’S TILE Bovard Insurance Group Carpenters District Council

The National Home Building Co. 2005 Adamson Brothers Heating & Cooling Joe Kilowatt, Inc.

GOLD sponsors

Bank of Blue Valley Capitol Federal Bank Fasone & Partners Factory Direct Appliance First Federal Bank K & E Flatwork McCray Lumber & Millwork Northcraft Flooring & Granite Nebraska Furniture Mart

“The Little Agency

That Roars!”

Fasone & Partners

2013 Christensen Lumber Inc. First Choice Custom Homes, LLC Wood Family Development, Inc. 2014 ACS: Concrete/Construction Blue Springs Beam Service, Inc. BMO Harris Bank BNC National Bank CS Carey First Bank of Missouri Presko Custom Homes Inc. Ripley Associates - Remax Elite Superior Masonry, Inc.

Advertising Marketing PR

Celebrating 40 years of Results!

Make your business ROAR!

Owen Lumber Co. Phelps Engineering ProBuild RockTops Granite & Stone Star Drywall & Insulation Sun Lumber Co. United Heating, Cooling & Plumbing Wells Fargo

Silver sponsors

Henges Insulation and Fireplace

Contact Karol Angotti or Michal Fasone 816.753.7272 karol@fasonepartners.com or mj@fasonepartners.com

Bronze sponsors 84 Lumber Atronic Alarms Building Solutions Commerce Bank Complete Home Concepts CrossFirst Bank First American Title

FasonePartners.com

Partners with HBA Advertising | Marketing | Digital since | PR

Kansas Gas Service Stewart Title

2010 20

Hermes Landscaping Kansas City Title Laclede Gas Locks & Pulls North American Savings Bank Pacific Mutual Door

Pella Products of Kansas City ProSource Secured Title of Kansas City Shamrock Cabinet

August 2015 | Volume 21, No. 8 | www.kchba.org

New Members

Click this logo at

www.kchba.org

Robert Garver Builder, Inc. Robert Garver 21660 W 207th Spring Hill, KS 66083 (913) 592-5300 www.rgarverbuilder.com

31-W Insulation Company, Inc. William Anglea 105 NW 4th Street Oak Grove, MO 64075 (816) 690-6300 www.31w.com

Midwest Energy Rating & Auditing Erik Henson 23759 W 81st Ter Shawnee, KS 66227 (913) 305-7224 www.midwestenergyraters.com

AAA Lifetime Exterior & Remodeling Chris Shahbazi 6219 N Oak Kansas City, MO 64118 (816) 421-5433 www.aaalifetimeexterior.com

Collins/TruWood Siding & Trim Brett Bleichrodt 552 East Irvin Avenue Littleton, CO 80122-2804 (303) 895-8556 collinswood.com Sunrise Construction, Inc. Alan Evans 619 S. Locust St Gardner, KS 66030 (913) 424-0289

TDS Construction Terry Singer 115 N 4th St Odessa, MO 64076 (816) 223-9398

Owen Homes, LLC Charielle Sowers 113 S. Bridge Street Smithville, MO 64089 (816) 343-6065 www.owenhomeskc.com Graham Homes Danny Graham 701 SW Eagle Dr Oak Grove, MO 64075 (816) 716-9023 www.grahamhomes.com CRS, LLC Shalom Vaknin 9515 Lee Blvd.

Leawood, KS 66206 (816) 651-0933

Green Grass Investments, Inc. Michael Rape P O Box 1153 Raymore, MO 64083 (816) 806-4056 Showcase Publishing, Inc. Marcia Myers, Primary Lonnie Cohen, Affiliate Po Box 26326 Overland Park, KS 66215 (785) 883-2196 www.lakeoftheozarkssecondhome.com

Bricks N Stones LLC David Taylor 11235 Mastin, Ste 103 Overland Park, KS 66210 (913) 339-9000 Cosentino North America George Rifford 15403 W 100th Terrace Lenexa, KS 66219 (913) 888-0935

HBA Staff Sara Corless Executive Vice President scorless@kchba.org, 816-733-2216

Marcia Jurgens Director of Administration marcia@kchba.org, 816-733-2215

Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219

Dawn Allen Director of Member Services and Events dawn@kchba.org, 816-942-8800

Crookham Construction LLC Katy Crookham 325 E. Hwy 24-40 Tonganoxie, KS 66086 (913) 369-3341 crookhamconstruction.com

Stephanie Stollsteimer Director of Marketing & Special Projects stephanie@kchba.org, 816-733-2213 Kelcee Schlotzhauer Events and Administration Assistant kelcee@kchba.org, 816-942-8800 21

Tricia French Special Projects Assistant tricia@kchba.org, 816-733-2241 Katie Walkley Government Affairs Intern katie@kchba.org, 816-733-2241

to login to your account

Online Resources for HBA Members!

Register for HBA Events with Safe & secure online registration. Personalized calendar of events.

Get notification of your events

Update Your Membership

Call today 816-942-8800, or email gina@ kchba.org or scorless@kchba.org

BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY August 2015 • Volume 21 • Issue 8 Copyright 2015

Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 (816) 942-8800 Executive Vice President Sara Corless Editor Marcia Jurgens Contributing Writer Katie Walkley Graphics Karla Peterie, Creative Services

2015 Executive Committee Home Builders Association of Greater Kansas City President Mark Mather Vice President Brenner Holland Secretary/Treasurer Harold Phelps Associate Representative Kevin Kirtley Immediate Past President Chris Ragland To subscribe to Building Business News call (816) 733-2224 To advertise in Building Business News call (816) 733-2215 For change of address requests please fax changes to (816) 942-8367 or call (816) 942-8800 For more information, visit the HBA online at www.kchba.org

www.kchba.org | Volume 21, No. 8 | August 2015

Department of Labor Issues Guidance on Independent Contractor Determination The U.S. Department of Labor (DOL) on July 15 issued guidance regarding application of the criteria used to assess whether a worker is properly classified as an independent contractor under the Fair Labor Standards Act, which determines overtime, unemployment insurance and other obligations. Independent contractors are not covered under the act.

The test used under the FLSA is one of several used at the federal level to determine worker classification. The Internal Revenue Service, the National Labor Relations Act, and Employee Retirement Income Security ACT (ERISA), each use a different test to distinguish independent contractors from employees.

The administrator’s interpretation concludes that most workers are employees under the FLSA’s broad definition of employ, which means “to suffer or permit to work.” In order to make that determination, the courts use a six factor economic realities test.

The factors considered under economic realities test include:

the

• Is the work an integral part of the employer’s business?

• Does the workers’ managerial skill affect the workers’ opportunity for profits or loss?

• How does the worker’s relative investment compare to the employer’s investment?

• Does the work performed require special skill and initiative?

• Is the relationship between the 22

worker and the employer permanent or indefinite?

• What is the nature and degree of the employer’s control?

The DOL document does not appear to signal a shift or change in the law as it relates to how workers are classified as either employees or independent contractors. Rather, it clarifies the factors to be considered in making such a determination.

On its face, this “interpretation” does not appear to place any new or additional burdens on the industry. However, given the emphasis on the construction industry to date, and in the guidance document, NAHB will have to be vigilant in monitoring enforcement to determine how DOL is applying the “economic realities” test in the field.

Arguably, the factors leave a lot of room for interpretation, and the document confirms there is clearly a bias towards worker status as employees.

The NAHB is also concerned that the Administration is too focused on enforcement and providing less individualized assistance to employers who are in need of compliance information. NAHB plans to urge Congress to use its oversight authority to ensure DOL hasn’t overstepped its boundaries.

Residential Building permit Statistics

August 2015 | Volume 21, No. 8 | www.kchba.org

June Permits Continue Slow, Steady Growth Local builders took out permits for 433 single family homes during June, the highest June number since 2007, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. With 433 single family permits issued during June, the year-to-date total for 2015 is 2,148.

Multi-family construction continues to grow as June recorded 120 units making a year-to-date total of 1,528.

Looking at the permit data on a county-by-county basis, each county except Johnson and Wyandotte has recorded an increase over 2014. Clay County has the largest increase, both in raw number of permits issued (106) and in percentage increase of 31%. The northern sections of Kansas City account for 429 permits, nearly 20% of the total issued in the area. Olathe and Overland Park combined have issued 446 permits, or 21% of the total. The top six permitting cities are rounded out by Lee’s Summit, Lenexa and Blue Springs.

Notice to Builders Permit data is transmitted to the KCHBA by city and county officials in the eight counties shown in the permit statistics report. Permits issued in the unincorporated areas are often reported under the property owner’s name instead of the builder who will be constructing the home. If you have pulled permits through any of the county offices and would like to verify whether or not the permit has been entered in your company name in the KCHBA data base, please send home site addresses to marcia@kchba.org and staff will check the information and change as necessary. Thank you for your help in making our records as accurate as possible.

June 2015 Residential Building Permit Statistics CASS COUNTY Archie Belton Cass County Cleveland Drexel Garden City Harrisonville Lake Winnebago Lee's Summit Peculiar Pleasant Hill Raymore Village of Loch Lloyd

CLAY COUNTY Clay County Excelsior Springs Gladstone Kansas City Kearney# Lawson Liberty North Kansas City Pleasant Valley Smithville JACKSON COUNTY Blue Springs Buckner Grain Valley Grandview Greenwood Independence Jackson County Kansas City Lake Lotawana Lee's Summit Oak Grove Raytown Sugar Creek PLATTE COUNTY Edgerton Kansas City Parkville Platte City Platte County Riverside Weatherby Lake Weston JOHNSON COUNTY De Soto Edgerton Fairway Gardner Johnson County Leawood Lenexa Merriam Mission Hills Olathe Overland Park Prairie Village Shawnee# Spring Hill Westwood

Single Family Units^

M-F Units Sale%

M-F Units Rent

0 0 12 0 0 0 0 0 4 0 3 13 0 32

0 0 0 0 0 0 0 0 0 0 0 0 0 0

5 0 0 55 0 0 3 0 0 3 66

June 2015

Total Units

S-F Units YTD

M-F Sale YTD

M-F Rent YTD

Total Units YTD

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 12 0 0 0 0 0 4 0 3 13 0 32

2 6 20 1 0 0 4 2 19 1 14 47 4 120

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 6 0 6

2 6 20 1 0 0 4 2 19 1 14 53 4 126

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

5 0 0 55 0 0 3 0 0 3 66

20 0 10 352 26 0 14 4 0 23 449

0 0 0 0 0 0 0 0 0 0 0

0 0 0 336 0 0 0 0 0 0 336

20 0 10 688 26 0 14 4 0 23 785

24 0 8 0 3 11 8 12 0 33 3 0 0 102

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 80 0 0 0 0 0 80

24 0 8 0 3 11 8 92 0 33 3 0 0 182

92 0 40 5 15 44 20 49 10 147 14 0 0 436

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 126 0 153 0 0 0 279

92 0 40 5 15 44 20 175 10 300 14 0 0 715

0 19 11 0 11 7 2 0 50

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 19 11 0 11 7 2 0 50

0 77 41 0 62 7 10 0 197

0 0 0 0 0 0 0 0 0

0 5 0 0 0 0 0 0 5

0 82 41 0 62 7 10 0 202

0 0 1 9 4 5 27 0 0 50 37 1 0 2 0 136

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 40 0 0 0 0 0 0 0 0 40

0 0 1 9 4 5 67 0 0 50 37 1 0 2 0 176

4 0 3 29 16 31 104 4 4 243 203 10 50 21 0 722

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 72 0 0 40 0 0 141 617 0 0 0 0 870

4 0 3 101 16 31 144 4 4 384 820 10 50 21 0 1592

23

Single Family Units^ LEAVENWORTH COUNTY Basehor 12 Lansing 0 Leav. County 9 Leavenworth 1 Tonganoxie 2 24 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill

Totals

M-F Units Sale%

M-F Units Rent

Total Units

S-F Units YTD

M-F Sale YTD

M-F Rent YTD

Total Units YTD

0 0 0 0 0 0

0 0 0 0 0 0

12 0 9 1 2 24

44 5 39 7 12 107

0 0 0 0 0 0

0 0 0 0 0 0

44 5 39 7 12 107

1 0 19 20

0 0 0 0

0 0 0 0

1 0 19 20

5 1 78 84

0 0 0 0

0 0 0 0

5 1 78 84

0 1 0 0 2 3

0 0 0 0 0 0

0 0 0 0 0 0

0 1 0 0 2 3

7 15 0 0 11 33

0 0 0 0 0 0

32 0 0 0 0 32

39 15 0 0 11 65

433

0

120

553

2148

0

1528

3676

Comparison of Single Family Building units for Greater Kansas City

(Cass, Clay, Jackson, Platte, Johnson, Leavenworth, Miami, Wyandotte Counties)

Month/Year January February March April May June July August September October November December

2008

2009

2010

2011

2012

2013

2014

2015

Annual Total

3,232

2,155

2,471

2,301

3,299

4,090

4,271

2,148

221 262 353 441 231 260 311 293 264 314 167 115

96 129 131 184 189 204 196 207 219 226 192 182

137 145 252 228 213 239 180 243 173 279 173 209

90 121 180 210 230 262 204 205 202 205 185 207

188 182 270 277 294 268 288 260 379 331 283 279

273 224 335 444 337 333 409 354 384 369 340 288

287 216 362 439 385 364 375 352 383 468 312 328

235 260 392 436 392 433

All numbers shown in the box above are ACTUAL numbers.

Comparison of Permits By Units Issued Year to Date* 2008-2015 2008 2009 2010 2011 2012 2013 2014 2015

S-F Units 1768 933 1214 1093 1479 1946 2053 2148

M-F Units

1298 78 55 272 517 1702 1977 1528

Total Units

3066 1011 1269 1365 1996 3648 4030 3676

^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units and are divided by sale/rent. # Not available at time of report Permit information reflects the most recent data at time of publication. In order to ensure accurate recording of residential building permit statistics, the HBA may revise monthly and year-to-date figures when updated data is made available.

Copyright 2015 Home Builders Assoc of Greater Kansas City. All rights reserved.

www.kchba.org | Volume 21, No. 8 | August 2015

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