June 2014
Continuing Education at Your Desk Page 3 Spring Parade Award Winners Page 4 and 5 Member Q&A Page 9 State Legislative Wrapups Page 12
Congressmen Cleaver and Yoder Visit with HBA Members Congressman Emanuel Cleaver, II (Missouri, 5th District) and Congressman Kevin Yoder (Kansas, 3rd District) had lunch and visited with HBA members on May 14 at the HBA as part of the NAHB 2014 Legislative Conference, “Bringing Housing Home.” The Congressmen gave
an update on their work in Washington, DC and took questions from HBA members. Members raised concerns with the inability of Congress to move forward on key legislative priorities, such as housing finance reform that ensures the federal government continues to provide a back-
stop for a reliable and adequate flow of affordable housing credit in all economic and financial conditions. Members also discussed the need for Congress to pass immigration reform to provide the certainty needed to grow the economy and increase competitiveness.
June is National Homeownership Month For those in the housing industry, every month is homeownership month. Officially, however, the National Association of Home Builders has declared June as the month to celebrate this cornerstone of the American dream. Most Americans consider homeownership to be their single best long-term investment and a primary source of wealth and financial security. Yet, a home is so much more than an investment. In good times and in bad, the opportunity to own a home has been a cherished ideal and a source of pride, accomplishment, social stability and peace of mind. HBA President Chris Ragland welcomed guests to the American Dream Awards Celebration
As everyone who weathered the Great Recession understands, the home building industry and home ownership is crucial to individuals, to the economy and
to society in general. Countless generations of Americans have counted on their homes for their children’s education, their own retirement and a personal sense of well-being. For our families, friends and neighbors, the word “home” means so much more than a structure—it is where their lives take place, where their loved ones gather. For the American economy, the home building industry is crucial. Fully 15 percent of the U.S. economy relies on housing and nothing packs a bigger local economic impact than home building. Constructing 100 new homes creates more than 300 full-time jobs, $23.1 million in wage and business income and $8.9 million in federal, state and local tax revenue. A healthy Continued on page 2 housing industry
A welcoming entry from Summit Custom Homes
www.kchba.org | Volume 20, No. 6 | June 2014
June Calendar June 3 – 6 NAHB Spring Board Meeting, Washington, DC June 12
Onsite Home Construction 101
June 17
HBA Golf Tournament, Hillcrest Golf Club
June 18
Build-PAC Fundraiser
June 20
HBA Royals Night
Pfeifer Homes’ cozy family room
National Homeownership Month Continued from page 1 means more jobs and a stronger economy. Home building increases the property tax base that supports local schools and communities. Housing, like no other sector, is “Made in America.” Most of the products used in home construction and remodeling are manufactured here in the United States.
For more information or to register for any event, go to www.kchba.org or call 816-942-8800
Home ownership provides structure and stability to communities. At the Builder Development Corporation’s recent ribbon cutting in Independence, Congressman Emanuel Cleaver pointed out that owning a home generally means a person is em-
ployed, and an employed person is less likely to commit criminal acts. Recent research, as reported by HSH.com, found higher crime rates in states where homeownership is low. It is not possible to say that homeownership prevents criminal activity, but it does seem logical to infer that residents who have invested their money and time in property are more likely to respect other people’s well-being and property. Home building is community building. During June, we celebrate and appreciate all those who build and all those who buy.
American Dream Awards Celebrated Best in New Homes Top local home builders were presented with the 2014 American Dream Awards as a crowd of more than 300 people attended HBA’s Spring Awards Ceremony at The Gallery in the Power & Light District. Each spring local home builders compete for top honors in the awards competition held in conjunction with the Spring Parade of Homes. The 52nd annual Parade provided consumers the opportunity to visit 377 new homes throughout metropolitan Kansas City during the 16-day, three-weekend event that opened April 26 and continued through May 11. By all reports, traffic was heavy as potential home buyers were eager to view the latest de2
sign trends, energy-saving measures and neighborhood amenities. The American Dream Awards are the premier honor for new home construction in the Greater Kansas City region. Builders’ entries were rigorously judged on architectural design, construction techniques, craftsmanship and selection of materials. Homes competed in categories based on price range. Teams made up of industry professionals from across the United States canvassed the Kansas City region April 25 and 26 to evaluate the entries. Twenty-four Grand Award winners were selected, and twenty-seven First RunnerUp honors were awarded. See winners on pages 4 and 5.
Continued from page 2 June 2014 | Volume 20, No. 6 | www.kchba.org
Continuing Education at Your Desk Building professionals are busy people. NAHB knows how difficult it is to make time for even the most compelling courses, seminars and workshops. It’s easy to miss the learning opportunities that help you to stay abreast of the latest technologies, newly passed regulations and costeffective ways of doing business. NAHB offers virtual learning opportunities that are priced right and fit easily into your busy schedule. Each Wednesday afternoon, the NAHB offers an hour-long seminar on a variety of topics. Seminars are organized in the following categories: Economic and Research Series; Policy and Finance Series; Design and Technology Series; Sales and Marketing Series and Business
The New Normal: Retooling Your Business for Bottom Line Success
Is your company prepared for the new trends, technology and training necessary to keep up as the housing market continues to rebound? NAHB’s The New Normal: Retooling Your Business for Bottom Line Success webinar series focuses on specific knowledge areas like finance, product positioning and social media to help you and your company compete—and succeed—in building’s brave new world.
Webinar topics: Better Product Positioning through Competitor and Consumer Research Marketing Your Business in the “Participation Age” The New Rules for New Home Sales Using Design Trends to Create a Competitive Advantage Securing Capital for Your Company’s Growth Solving the Supplier/Trade Shortage: New Rules, New Thinking Here’s an interesting question from Marketing Your Business in the “Participation Age”: If you have to show a picture to represent your homes, without showing a home, what would it be?
Improvement Series. As an example of the recent webinar topics, the May offerings included “Design Trends: 45 Design Ideas for Single-Family and Multifamily Homes”, “Codes 101: Remote Voting Grassroots Campaign” and “Financing Solutions for Housing Rural Americans”. Each webinar counts for one hour of continuing education credit for NAHB professional designations. Each class is archived and may be viewed at a later date. Registration for most webinars is $24.95 for NAHB members.
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The Wednesday Webinar schedule for future weeks is: June 18—Building Information Modeling (BIM) and Residential Construction; June 25—Save Time and Money Using Systems-Built Strategies: Modular Construction; July 20—Water Features and Landscape Architecture for Single-Family Homes & Communities. A special series held this past spring, The New Normal: Retooling Your Business for Bottom Line Success, included 6 sessions that are free to NAHB members. Many of these seminars would be excellent staff training tools and because they can be replayed at any time, could easily fit into an office schedule. To view these replays point your browser to NAHB.org/ Education and Events.
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It’s still Spring, but time to think about Fall
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With a Spring Parade that had the highest number of entries in years and heavy consumer traffic, now is the time to prepare for the Fall Parade of Homes. The 2014 Fall Parade will begin on September 27 and run through October 11, with the Awards Celebration on October 1st. Advertising in the Parade Guide is a unique opportunity to promote your business, products, service or community to thousands of potential buyers. More than 20,000 books are distributed throughout the Kansas City area and the guide is also posted on the kcparadeofhomes.com website, where it is viewed by thousands more people. For information on rates and specifications, contact Gina Battle at 816-733-2219.
Nebraska Furniture Mart provides an unrivaled selection of products and services under one roof, making it your one-stop solution for all of your building or remodeling needs. From minor upgrades to custom and professional applications, we have the right prices, superior designs, and professional installation capabilities. Visit us for all of your Furniture, Flooring, Appliances, Electronics, Lighting and Countertop needs. Store Location: I-435 & State Ave. West • Kansas City, KS Convenient Hours: Mon – Sat: 10am to 9pm, Sun: 10am to 6pm Builder Sales: 913-288-6299 • 800-407-5000 Kitchen Design Studio: 913-288-6124 • Electronics Design/Installation 913-288-6500 • Interior Design Gallery: 913-288-6354 ©2014 Nebraska Furniture Mart, Inc.
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www.kchba.org | Volume 20, No. 6 | June 2014
Patrick Willis Parade Committee Chairman
C & M Builders: 136 NW Nutall Dr, Winterset Valley; 16600 Cody St, Mills Farm; 16824 Stearns St, Coffee Creek Crossing; 16409 Lucille St, Mills Farm
Kenny’s Tile employees joined the celebration.
A great crowd attended the Spring American Dream Awards Celebration.
Starr Homes 16461 Bond St, Mills Farm
Rausch Coleman Homes 26120 W 142nd Terr, Whitetail
Casa Bella Construction 10614 N Dalton Ave, Tiffany Greens
Homes by Chris 9212 N Evanston, Copperleaf 4
Wolf Creek Homes 19324 New Castle, Estates of Wolf Creek
JS Robinson Fine Homes 24028 W 124th Terr, Hills of Forest View
Dreams & Design Building 800 SW Powell, Oaks of Edgewood
New Mark Homes 1819 NE 102nd Terr, Staley Farms 7116 N Beaman, Overland Ridge
June 2014 | Volume 20, No. 6 | www.kchba.org
Roeser Homes 12013 W 164th St, Polo Fields
SAB Homes 2917 SW 16th St, Siena at Longview 15516 Stearns St, Colton Lake South
Steve Foley Construction 22381 Roosevelt, Sweetwater Creek
New Castle Homes and Gary Kerns Homebuilders 12304 N Highland Ave, Woodland Creek 601 Rockbridge Court, Greyhawke at the Lake
Moffitt Built 12810 W 49th Terr, Heather Glen
Summit Custom Homes 12810 N Apple Blossom Dr, Seven Bridges
Woodbridge Homes 10502 W 168th Terr, Coffee Creek Crossing
Estes Custom Homes 16200 Lucille St, Mills Farm
Cecil & Ray 101 Dunhill Court, Loch Lloyd
Spring Parade of Homes First Runner Up Award Winners
Dreams & Design Building
4238 S Stone Canyon Drive
Stone Canyon
Summit Custom Homes
24050 W 124th Terr
Forest View-the Hills
Hilmann Home Building
24072 W 124th Terr
Forest View-the Hills
Don Julian Builders
2811 NE 102nd Ter
Staley Farms-Shadow Woods
New Mark Homes
6100 NW 104th Terr
Tiffany Greens
Ashlar Homes
2720 S Haden Ct
Drumm Farm Villas
Summit Custom Homes
2815 NE 102nd Terr
Staley Farms- Shadow Woods
SAB Homes
312 Alexander Creek Court
Alexander Creek
James Engle Custom Homes
12820 N Apple Blossom Drive
Seven Bridges
Sallee Homes
904 SE Sienna Court
Parkway Estates
Monticello Homes
1733 NE Woodland Shores Ln
Woodland Shores
Sallee Homes
900 SE Sienna Court
Parkway Estates
New Mark Homes
5705 NW 59th Terr
Forest Ridge Estates
Sallee Homes
908 SE Sienna Court
Parkway Estates
Don Julian Builders
5955 N Saline Ave
Forest Ridge Estates
McBee Custom Homes
1104 SW Conch Way
The Estates at Chapman Farm
Providence Homes
16129 Oakmont
Summerwood
Homes By Chris
9100 N Oxford
Copperleaf
Koehler Building Co
10418 W 168th Terr
Coffee Creek Crossing
SAB Homes
2337 SW Deer Run Road
Eagle Creek
Don Julian Builders
8255 Shoreline Dr
Riss Lake Reserve
Richard Mather Builders
2662 SW Heather
Highland Meadows
Allure Luxury Homes
10410 W 168th Terr
Coffee Creek Crossing
Summit Custom Homes
4317 SE Lariat Drive
Belmont Farms
Larson Building
2615 W 83rd
Leawood
James III Homes
22021 W 122nd St
Grayson Place
Evan-Talan Homes
14612 Linden
Highlands Creek
5
www.kchba.org | Volume 20, No. 6 | June 2014
Index Shows Metro Markets Continuing on Path to Normalcy Of the 351 metro markets measured, 300 have seen year-over-year economic gains, according to the National Association of Home Builders/First American Leading Markets Index (LMI), released May 6. The index shows that 59 metros have fully returned to or even exceeded their last normal levels of economic and housing activity.
should spur a steady release of pent up demand among home buyers.” Keeping its top position of major metros on the LMI was Baton Rouge, La. with a score of 1.41 - or 41 percent better than its last normal market level. Other major metros whose LMI scores indicate that their market activity now exceeds previous norms include Honolulu, Oklahoma
We proudly support the home building industry.
At a score of .79, the Kansas City metro area falls into the 20% to 40% ranking.
The nationwide economic score rose slightly to .88 from a revised April reading of .87. This means that based on current permit, price and employment data, the nationwide average is running at 88 percent of normal economic and housing activity. The index showed an overall reading of .82 a year ago. “We have always said this recovery would be a slow but steady one, and I think this index continues to prove this,” said NAHB Chief Economist David Crowe. “The year started a bit slower than anyone could have anticipated, but we still expect housing to play a greater role in aiding the overall economic recovery this year. The job market continues to mend, and that 6
City, Austin and Houston, Texas, as well as Los Angeles and San Jose, Calif. and Harrisburg, Pa. “Our builder members tell us they are starting to see more optimism in the field,” said NAHB Chairman Kevin Kelly. “Mortgage rates are low, home prices are affordable and with the harsh winter behind us, latest surveys show builders are feeling more bullish about future sales conditions.” “We keep waiting for the economy to get into a higher gear,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Co., which co-sponsors the LMI report. “This report, along with other recent economic news, may mean we are finally there.”
June 2014 | Volume 20, No. 6 | www.kchba.org
HBA Launches New Home Show Website cases important show information for both consumers and exhibitors, including new features such as a photo gallery, contests page, newsletter signup, and our new Refer an Exhibitor offer where exhibitors can receive a refund of $100 off the price of their own booth when they refer a new exhibitor to the show.
The HBA is excited to announce the launch of a new, dedicated website for the Home Show and Flower, Lawn & Garden Show, located at kchomeshow.com. The new site features a clean design and show-
The HBA is looking forward to the spring show, scheduled for March 20-22, 2015 at Bartle Hall. We encourage anyone interested in exhibiting to register early as booth space is reserved on a first come, first served basis and prime booth locations are already selling quickly! Limited sponsorship opportunities are also available. Visit kchomeshow.com to learn more and contact us to sign up!
Home Builder Contracts & Construction Management Forms contains 95 of the most useful business forms and contracts for builders including:
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These forms will help you systemize your business, work more productively, and manage more effectively. You can browse the book for the contracts and forms you need, download the documents from the CD, and customize them to meet your business needs, with your address, logo, local specifications, and more!
Tip #1: More cost savings Natural gas water heaters cost less to operate than electric water heaters, saving the average household $200 per year on their energy bill.
Benefit from the experience of successful builders across the country and increase your business success in: • Sales & Marketing: Work successfully with prospective home buyers, salespeople, and real estate agents.
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THINK OF US AS PART OF YOUR SALES TEAM. Homes and businesses with natural gas are instantly more attractive to customers. That’s because natural gas appliances offer greater efficiency and lower operating costs than their electric counterparts. For more on how to use natural gas to turn prospects into buyers, contact Lyn Leet at Lyn.Leet@kansasgasservice.com or 913-344-8808.
• Trade Contractors: Ensure quality and keep your production schedules moving. • Construction Management: Define the standards you use to build quality homes and deliver them at the right time and right price. • Quality Control & Warranty: Manage your final quality control checks and warranty work. You’ll save hours of work—and that can mean saving hundreds of dollars with every form you use! Available at builderbooks.com.
Contact MGE to learn more at 800-582-1234. 7
www.kchba.org | Volume 20, No. 6 | June 2014
The Not-So-Obvious Benefits of Buying a New Home Home buyers have the choice of two types of houses on the market: resale or new. Home buyers planning to buy a brand-new house or condominium often cite energy efficiency, open layout, a warranty, and being able to select appliances, flooring, paint colors and other design elements as factors driving their choice. But builders say that buyers can be drawn to a new house for reasons that aren’t so obvious. Here are a few more benefits of a brand-new home that you may not see in the sales brochure. Building a Community Together A brand-new community is one of the built-in benefits of many new homes. When families move in to a subdivision at the same time, they often form lasting bonds of friendship and neighborliness right away. Nobody is the “new kid on the block,” and many home builders host community parties in new developments to help owners meet and connect. Popular amenities like pools, walking trails and tennis and basketball courts offer additional opportunities for interaction among neighbors of all ages.
Outlets, Outlets Everywhere
Often new communities are comprised of home owners in the same stage of life, such as young families or active retirees, so neighbors can get to know each other through carpools, PTA meetings, tennis matches or golf games.
Homes built in the 1960’s and earlier were wired much differently than houses today. Builders had no way of anticipating the invention of high-definition televisions, DVRs and computers that we enjoy
Entertaining
there are never enough outlets, inside or out! Today, home builders plan for the increased number and type of electronics and appliances used by today’s families, so you can safely operate a wine cooler, Christmas lights and your laptop — and more. A Clean Slate
Throwing a party in an older home can be a challenge because smaller, distinct rooms make it difficult to entertain guests in one large space. Today, new home layouts feature more open spaces and rooms that flow into each other more easily. While you are preparing dinner, you can still interact with guests enjoying conversation without feeling closed off. The feeling of spaciousness in today’s new-home layouts often is enhanced with higher ceilings and additional windows that bring in more light than you would find in an older home.
For some buyers, parking the car in a sparkling-clean garage or being the first to cook a dinner in a brand-new kitchen is part of the appeal of new construction. In addition, you won’t have to spend time stripping dated wallpaper or repainting to suit your own sense of style — creating your own home décor from the get-go!
today — and the very different electrical requirements they would introduce. New homes can accommodate advanced technologies like structured wiring, security systems and sophisticated lighting plans, and can be tailored to meet the individual home owner’s needs. Anyone who has ever lived in an older home can also attest to the fact that
The advantages of being the first owner extend to the outdoors. Instead of inheriting inconveniently or precariously placed trees, or having to tear up overgrown shrubs, you can design and plant the lawn and garden you want. Home builders and realtors should take care to point out these benefits to potential homebuyers – they may not have considered all the advantages of new construction.
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June 2014 | Volume 20, No. 6 | www.kchba.org
Member Q&A Member Q&A
Missouri General Assembly Extends Energy Audit Deduction
Bruce Rieke and Don Julian at the 2013 HBA Clay Shoot. Mark your calendars now for the 2014 HBA Clay Shoot on October 17
Wayne Burton President Western Chandelier Co. Inc.
Bruce Rieke President B.L. Rieke Custom Homes, Inc.
How did you get into your business? My dad was warehouse manager for Western Chandelier so I started work there at 15 to earn money for my car and have stayed for the last 47 years.
How did you get into your business? Toni and I built our first house when we were 22 years old for ourselves. My brother in law Greg Prieb asked if I wanted to be a builder after we finished our home, we then partnered for 2 years and then I purchased the company from him.
What are the goals for your business? To continue to supply the homes of Kansas City with the best selection of quality lighting possible.
What are the goals for your business? Our goals have always been to build the best quality home and give the homeowner the best experience possible.
What do you like to do outside of work? There is very little of that time, but my grandson’s soccer games are seldom missed.
What do you like to do outside of work? I enjoy fishing and hunting. I also enjoy boating and riding in our convertible car.
Where do you like to go for fun? Mazatlán, Mexico and Palau in the South Pacific What is something people don’t know about you? Probably my love for classic cars, such as my 1969 Jaguar XKE Roadster and 1956 Rolls Royce Silver Cloud with right hand drive. What is your favorite movie/television show/website? A Few Good Men and Modern Family. What is your prediction for the home building industry? Continued slow growth—slower than present rate or we may see another recession. What is your favorite HBA event/ meeting experience? Parade of Homes because it’s one of the biggest and best in the country and spurs the public to remodel or buy.
and housing stats that we received every month at the HBA Board Meetings. It is a great way to stay ahead of changes to your business that come from government regulations. It is also a great way to challenge regulations being involved at the HBA. I get to meet some of my peers that I may not have gotten to know since being on the board. We need more Kansas Builders to step up and get involved.
Where do you like to go for fun? Lake of the Ozarks and Siesta Key Beach in Florida. What is something people don’t know about you? I enjoy helping people that need help. What is your favorite movie/television show? The Last of the Dogmen. Fox News. Website? Gunbroker.com What is your prediction for the home building industry? Next few years appear to be good, after 2017, time to be conservative. What is your favorite HBA event/meeting experience? International Builders Show and Fall Board of Directors Meeting for the NAHB. Why did you decide to join the HBA? It was a major reason that I saw the economy changing with the economic forecasts 9
In the final days of the legislative session, the Missouri General Assembly overwhelmingly passed Senate Bill 601, a bill to extend the existing tax deduction for home energy efficiency audits. The bill reauthorizes the deduction as of January 1, 2014 and sets the expiration date for December 31, 2020. The deduction has a $1,000 annual limit per individual (or per joint taxpayer return) and a $2,000 cumulative limit per individual or joint taxpayer. The energy audit must be performed by a home energy auditor certified by the Missouri Department of Natural Resources before any efficiency improvements are performed in order to be eligible for the tax deduction. Senator Jason Holsman, a Democrat from Kansas City, was the lead sponsor of the bill to restore the deduction.
www.kchba.org | Volume 20, No. 6 | June 2014
Anniversaries 1952 Ferguson Enterprises, Inc. Pacific Mutual Door & Window 1974 Dulaney Construction Company 1978 Tom French Construction, Inc. 1984 O’Donnell & Sons Construction Company 1985 MarKirk Construction, Inc. 1990 Childress Painting & Associates, Inc. 1992 Ashner Construction Company, Inc. 1999 Stewart Title of Kansas City 2001 Atronic Alarms, Inc. First American Title 2002 KGH Building Group, LLC 2003 Apex Engineers Inc. 2004 C & M Builders, Inc. Haynes Equipment Co., Inc. Highland Park Builders, LLC National Bank of Kansas City Shaw Construction, Inc. 2005 Lumber One, LLC Martens, Inc Valley View State Bank 2006 K & E Flatwork, LLC Tabernacle Homes, LLC 2007 CrossFirst Bank
“The Longevity Revolution” An article titled “The Longevity Revolution”, which appeared in the February 2014 issue of Washington, the magazine for Washington University in St. Louis noted this startling fact: “twothirds of folks in human history who have
Jim Larson Homes, LLC Joseph Lane Homes, LLC 2008 Park Ridge Homes, LLC. 2009 H & H Steel, Inc. RubinBrown LLP 2010 Continental Title Company Legacy Flooring Contractors 2011 Armstrong Cabinets Corporation E & M Consulting, Inc. 2012 D Three Framing, Inc. Design Build Team, Inc. Dusty Dahmer Construction Murray Home Insulation, LLC Northcraft Flooring & Granite Design, LLC Sbisa Homes, Inc. Thermal King Windows 2013 All Seasons Window & Siding, LLC American Drywall Co. Inc. Bill McCoy Real Estate Co., LLC Builder/Buyer Services Group C.D. McClain Electric Clayco Electric Dan Moore Construction Douthit Frets Rouse Gentil & Rhodes Gaumats International, LLC Haven Contracting J.W. McDowell Electric Leisure Living LLC Four Seasons Sunrooms Miller, an Oldcastle Company
as they look at the features of homes under consideration. Across the nation, builders and developers strive to meet the housing needs of boomers, empty nesters, active adults, retirees, and older seniors — a huge and growing market. The 50+ Housing Council serves the special needs of NAHB members involved in all aspects of 50+ housing. The following article, excerpted from NAHB’s 50+ Housing Online Magazine, presents the experience of three builders active in different areas of the housing market focused on those age 50 and older. The three builders spoke in February at NAHB’s International Builders’ Show.
made it to the age of 65 are on the planet right now. By the year 2030, the number of people over age 65 in the US will have doubled to 72 million. That’s one in five people.” What does this mean for home builders? It means that the potential customer base is aging along with the general population. In addition to the increasing age of the primary home buyer, younger buyers may also have their aging parents in mind
Gary Campbell, Gilbert Campbell Real Estate, Lowell, Mass., and builder of several market-rate rental communities, recently built a 62+ age-restricted, lowerrent community of 60 units. It was so successful that he’s planning to do more age-restricted rentals. C.R. Herro heads up the Energy Business Innovation Program at Meritage Homes. Meritage builds Continued on page 11
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June 2014 | Volume 20, No. 6 | www.kchba.org
“The Longevity Revolution” Continued from page 10 about 20 million sq.ft. of green housing per year, and about 10% of that amount is designed to appeal to active adults. Ron Bonvie, president of Helios Construction, Mashpee, Mass., started South Port, a large-scale high-end activeadult for-sale community in Cape Cod, just before the recession. It was a huge success, with 750 units currently sold and more in the pipeline. Campbell noted that there’s a segment of the older 50+ market that really wants a reasonable rental option and aren’t able to buy into an expensive assisted living community. His community appealed to those middle-to-lower-income renters who wanted to remain in their home community and stay for the long term. Bonvie’s target market wanted more. “I’m not selling houses at South Port — I’m selling a way of life,” he said. Bonvie provided an all-inclusive package approach that stresses health and wellness. Herro’s communities also stress amenities that involve activity. “It’s bike paths and Pickleball,” he said, “not card games.” He
has figured out how to involve his suppliers, architects and tradespeople in bringing green features into the homes and community from the beginning of the planning process. With across-the-board buy-in, he says he’s able to build “a home that consumes half the energy, has much better indoor air quality, is durable and built better than code — all within 5% of the cost of homes that don’t have that.” How Mature Clients Are Different Both Herro and Bonvie stressed that buyers in this age group “will not buy today.” They will take their time in making a decision. Like younger buyers, they will have done thorough research online before visiting, and they don’t really need to have the sales people tell them what they already know. They’re more interested in getting a feel for the community — preferably from people who already live there.
Market Research Potential buyers and renters aren’t the only ones doing research about their future homes. The other panelists agreed with Bonvie that the best way to decide what to build is to use a consultant who can identify the target market and collect data to help determine such things as whether to build a one-car or a two-car garage, the amenity mix and more.
Campbell agreed that the rental world also depends on testimonials and noted that people with bad experiences are much more eager to share them than people happy with the process and the community.
Herro observed that “We think we understand our buyers, but we don’t. Look around the room — we’re mostly guys. Guys don’t buy homes. In 92% of home purchases, even for single males, the key influencer is an adult female.” That, he said, is why builders need research to help
HBA Staff Sara Corless Executive Vice President scorless@kchba.org, 816-733-2216 Beatriz Ibarra Vice President of Government Affairs bibarra@kchba.org, 816-733-2237 Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219 Marcia Jurgens Director of Administration marcia@kchba.org, 816-733-2215 Jenni Dold Director of Marketing Jenni@kchba.org, 816-942-8800 Andrew McKeegan Association Services Manager Andrew@kchba.org, 816-733-2224 Phil Yancey Membership Manager Phil@kchba.org, 816-733-2245 Dawn Allen Executive Assistant/Communication and Events dawn@kchba.org, 816-942-8800 Cara Thomas Director, Home Show cara@kchba.org, 816-733-2217
them understand buyers. To purchase an audio CD or an MP3 version of this presentation, or any other 50+ Housing offering from the International Builders’ Show, visit Mobiltape.com and choose “70th Annual International Builders’ Show” from the drop-down menu. The 50+ sessions are at the top of the list.
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May 2014 • Volume 20 • Issue 5 Copyright 2014
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Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 (816) 942-8800
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2014 Executive Committee Home Builders Association of Greater Kansas City President Chris Ragland Vice President Mark Mather Secretary/Treasurer Brenner Holland Associate Representative Kevin Kirtley Immediate Past President Fred Delibero
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www.kchba.org | Volume 20, No. 6 | June 2014
TELL YOUR STORY Kansas and Missouri Promote your community or new homes to over 200,000* new home shoppers each week that read The Kansas City Star’s real estate sections either in print or online. Call for details 816-234-4739
Legislative Sessions Come to an End
IN
The Kansas Legislature and Missouri General Assembly have wrapped up another legislative session but not without impacting the housing industry. In Missouri, we worked with our HBA of Missouri partners to pass an amendment to extend the prohibition on mandatory fire sprinklers. Under current law, cities are prohibited from requiring builders to install fire sprinklers in one and two family dwellings but this prohibition was set to sunset on December 31, 2019. The amendment will extend the prohibition to December 31, 2024.
* Source: Scarborough research, August 2013
We were also successful in striking language from a bill that would have extended the definition of architecture to require their services in any design of an interior space, and not only to those that directly impact the structural integrity of a building or the life-safety and mechanical systems, but also the work that a non-architect could typically perform.
To advertise, call your account executive or Sharon Horgan at (816) 234-4739
The Missouri General Assembly also passed legislation that will require voters to decide on a statewide ¾ cent tax increase to fund highway improvements across the state. The initiative, which will be on the November 2014 ballot, would raise more than $500 million each year for roads and bridges. Proponents of the initiative are highlighting the bill as a job creator. Opponents argue that increasing the sales tax disproportionately impacts low-income individuals. The tax would expire in 10 years and would need to be reapproved by voters to remain in effect. The Missouri Senate succeeded in gaining the two-thirds majority vote to override Governor Jay Nixon’s veto of Senate Bill 509, a bill to cut state income taxes. The bill would reduce the individual income tax rate from 6 to 5.5 percent over a five year period beginning in 2017. The bill also included a 25 percent tax reduction for business income that is reported on an individual’s tax return, however, it stipu12
lates that annual revenue growth must be at least $150 million for the state. Senator Will Kraus from Lee’s Summit was the bill’s lead sponsor. In Kansas, the legislature’s veto session ended on May 3. In the final hours of the veto session, the legislature passed a bill (HB 2643) to phase out the Mortgage Registration Tax (MRT) over a period of 5 years. The bill also phases in certain per-page fee increases on documents filed with the Register of Deed’s office. The additional fees are meant to offset some of the lost revenue to counties (about $9 million for Johnson County). The bill was supported by the Mortgage Bankers Association and the Kansas Realtors Association. In addition, the Kansas Legislature passed a bill that directs the Secretary of Labor to study whether the state should “enter into an agreement with the federal government regarding state enforcement of federal occupational safety and health act (OSHA) standards.” The Senate Substitute for HB 2616 requires the Secretary to identify agreements necessary to carry out a state OSHA standard, review funding arrangements and determine statutory and regulatory changes that would need to be made. The report is due on or before January 12, 2015. It is important to note that on May 1 Moody’s Investors Services lowered Kansas’ bond credit rating from Aa1 to Aa2. According to the Kansas City Star, 29 states have higher ratings than KS. In addition, the Kansas Department of Revenue issued a report showing $92 million less than expected in tax collections for April. While not a legislative issue, per se, the economic health of the state will dictate the legislature’s actions next year and play into the upcoming November 2014 gubernatorial election.
June 2014 | Volume 20, No. 6 | www.kchba.org
NAHB to Congress: A Healthy Housing Industry = Job Growth The health of housing is key to the overall state of the U.S. economy, and housing stands poised to serve as an engine of job growth with the right policies in place, the National Association of Home Builders (NAHB) told Congress on May 7. Testifying before the Senate Banking Committee’s Subcommittee on Economic Policy during a hearing examining the drivers of job creation, NAHB economist Robert Dietz said that home building and remodeling have generated 274,000 jobs over the past 2 ½ years. “This expansion has direct economic benefits,” said Dietz. “Housing provides the momentum behind an economic recovery because home building and associated
$118 million in business income
businesses employ such a wide range of workers.”
$111 million in taxes and revenue for state, local and federal governments
Employment from new home construction and remodeling has a wide ripple effect. About half the jobs created by building new homes are in construction. They include framers, electricians, plumbers and carpenters. Other jobs are spread over other sectors of the economy, including manufacturing, retail, wholesale and business services.
Similarly, construction of 1,000 rental apartments, including units developed under the Low Income Housing Tax Credit, generates 1,130 jobs while $100 million in remodeling expenditures creates 890 jobs. Currently, housing comprises about 15.5% of GDP but Dietz said the industry still has room to grow. “Typically, housing represents 17% to 18% of the GDP,” he said. “With a growing population and an aging housing stock, NAHB forecasts that sin-
NAHB analysis of the broad impact of new construction shows that building 1,000 average single-family homes generates: 2,970 full-time jobs $162 million in wages
gle-family construction will increase 22% in 2014 to 760,000 units and multifamily production will rise 6% to 326,000 units.” Noting that 2014 should be the first year since 2007 in which total housing starts exceed 1 million homes, Dietz said this expansion will produce jobs. “In April alone, home builders and remodelers added 13,100 jobs,” he said. NAHB estimates that total housing construction over the next few years should return to just under 1.7 million combined single-family and multifamily starts on an annual basis.
BUILD-PAC Fundraiser Scheduled for June 18
Thanks to These HBA 2014 Sponsors Platinum sponsor
Bank of Blue Valley GOLD sponsors
Capitol Federal Bank Factory Direct Appliance First Federal Bank Henges Insulation K & E Flatwork Kansas City Star Kenny’s Tile & Flooring McCray Lumber & Millwork Nebraska Furniture Mart
Northcraft Flooring & Granite Owen Lumber Co. Phelps Engineering ProBuild Shamrock Cabinets Star Drywall & Insulation Sun Lumber Co. United Heating, Cooling & Plumbing Wells Fargo
Sara Corless, Jim Lambie and Roy & Chris Ragland enjoying the company and conversation at the 2013 BUILD-PAC Fundraiser The 2014 fundraiser for BUILD-PAC, the National Association of Home Builder’s Political Action Committee, will be held on Wednesday, June 18 at the home of Stan and Nancy Woodworth. HBA members are invited to gather for interesting conversation and to support the housing industry’s efforts on Capitol Hill. We appreciate the Woodworth’s hospitality as they open their lovely home in southern Johnson County for this event. If you are interested in becoming a Gold Key member in 2014, please contact staff to find out details about our 2014 Gold Key event. If you would like to learn more about BUILD-PAC, visit www.nahb.org or contact Beatriz Ibarra at bibarra@kchba.org. Thank you to the following volunteers and supporters of BUILD-PAC:
Silver sponsors
Ferguson Enterprises, Inc. Stewart Title
Kansas Gas Services Missouri Gas Energy
Bronze sponsors Building Solutions Carpenters District Council Commerce Bank Complete Home Concepts Continental Title Company CrossFirst Bank
First American Title Hermes Landscaping James Hardie Building Products Kansas City Title Kitchens & Baths by Briggs Locks & Pulls North American Savings Bank
Pacific Mutual Door & Window Pella Products of Kansas City ProSource of Lenexa Secured Title of Kansas City Western Chandelier 84 Lumber 13
HBA-PAC Trustees Kansas Missouri Tommy Angotti
Fred Delibero
Sara Corless
Robert Frost
Jim Haas
Travis Graham
Mark Hoffman
Kevin Kirtley
John Moffitt
Richard Mather
Harold Phelps
Kevin Stucker Tom Woods
2013 Gold Key Members Leo Ashner Sara Corless Fred Delibero Bob Frost Mark Hoffman Gary Kerns James Lambie Richard Mather
Harold Phelps Chris Ragland Michael Snodgrass Kevin Stucker Alan White Shawn Woods Tom Woods
www.kchba.org | Volume 20, No. 6 | June 2014
April Maintains Momentum in New Home Construction
NAHB Urges Members to Call their Senators on S. 1217 The National Association of Home Builders encourages HBA members to contact their U.S. Senators to urge them to support Senate Bill 1217, the Housing Finance Reform and Taxpayer Protection Act of 2014. The bill, which recently passed the Senate Banking Committee with bipartisan support, would fix the nation’s flawed housing finance system and breathe new life into the housing sector by providing a consistent and affordable supply of mortgage credit for single-family and multifamily housing. Increasing support for the bill will put pressure on the Majority Leader to hold a vote on the bill.
After six years of government conservatorship our nation’s housing credit system remains in a constant state of uncertainty and confusion. Home builders, lenders and other market participants cannot adequately plan for the future and home buyers are either denied credit or paralyzed by the mixed messaging. Absent reform, all critical policy decisions on the operations of Fannie Mae and Freddie Mac will continue to be left to one unelected regulator. In addition, the bipartisan compromise that would fund nearly $5 billion in annual affordable housing programs would be put on the back burner, and taxpayers would be exposed to yet another government bailout.
The eight county Kansas City metropolitan area recorded 441 single family building permits during April, bringing the year-to-date total to 1,304 according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. The monthly average of 326 through April of 2014 exceeds the monthly average during the first four months of 2013, making the first third of 2014 the most active since 2007. Area multi-family permits continue to correspond with national trends of increased apartment building with 1,159 units permitted through April. “Builders say home buyer traffic during the recent Parade of Homes was good and is evidence that the single family residential building recovery continues in 2014 in spite of the difficult winter and worries about rising interest rates and material prices,” said Executive Vice President Sara
To contact your U.S. Senators, visit the KCHBA’s Legislative Action Center at www.kchba.org/government-affairs/ legislative-action-center/ and click on the “Find your Elected Official” button.
Corless. “A new commitment to hiring staff and marketing is obvious to industry leaders, as well as slightly improved access to credit--all of which points to 2014 continuing to improve for builders, their suppliers and subcontractors,” added Corless. Residential building permits are almost evenly divided between Missouri and Kansas, with 654 issued in Missouri counties and 650 in Kansas locales. Kansas City, Missouri (Jackson, Clay and Platte counties) continues to be the top permitting city with 232, followed by Olathe with 174, Overland Park with 142 and Lee’s Summit rounding out the top five with 80.
KCMO Launches Electronic Plan Submittal Option
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Online Resources for HBA Members! Register for HBA Events Safe & secure online registration Personalized calendar of events. Get notification of your events
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The City of Kansas City, Missouri’s Planning and Development Department now accepts electronic plan submittals for one and two family residential plans, as well as other building categories. The electronic process will reduce trips to City Hall and save postage and printing costs. Builders should note that the submittal method, whether electronic or by paper, must be consistent for the duration of the entire project. Once the applicant has received email notification that the permit is ready for issuance it may be obtained at the City Planning and Development Permit Office or by fax. For detailed instructions and links to the necessary forms for electronic submission, go to http://kcmo.gov/ planning/electronic-plan-submittal/. The HBA is in the process of coordinating a symposium with the KCMO building official and HBA members to review this new electronic process and other policy changes related to residential construction. Please check This Week at the HBA for information about this upcoming event.
Residential Building Permit Statistics
June 2014 | Volume 20, No. 6 | www.kchba.org
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
Total Units
S-F Units YTD
M-F Sale YTD
0 0 5 0 0 0 1 0 1 2 1 3 0 13
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 0 0 0
0 0 5 0 0 0 1 0 1 2 1 3 0 13
5 0 12 0 0 0 3 1 11 7 6 15 4 64
10 0 1 54 2 1 0 0 0 5 73
0 0 0 0 0 0 0 0 0 0 0
0 0 0 12 0 0 0 0 0 0 12
10 0 1 66 2 1 0 0 0 5 85
33 0 6 3 4 5 5 7 2 17 1 0 0 83
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 315 0 0 0 0 0 315
0 20 7 0 12 0 0 0 39
0 0 0 0 0 0 0 0 0
3 0 0 5 2 15 23 1 0 52 62 2 22 10 0 197
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
April 2014 APRIL 2014 M-F Rent YTD
Total Units YTD
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 0 0 0
5 0 12 0 0 0 3 1 11 7 6 15 4 64
21 0 1 163 14 1 6 3 0 17 226
0 0 0 0 0 0 0 0 0 0 0
0 0 0 12 0 0 0 0 0 0 12
21 0 1 175 14 1 6 3 0 17 238
33 0 6 3 4 5 5 322 2 17 1 0 0 398
71 0 28 5 13 15 16 15 4 69 4 0 0 240
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 457 0 42 0 0 0 499
71 0 28 5 13 15 16 472 4 111 4 0 0 739
0 0 0 0 0 0 0 0 0
0 20 7 0 12 0 0 0 39
0 54 25 1 43 0 1 0 124
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 54 25 1 43 0 1 0 124
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 0 0 5 2 15 23 1 0 52 62 2 22 10 0 197
3 0 0 15 8 27 63 1 0 174 142 5 55 17 0 510
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 246 0 0 0 402 0 0 0 0 648
3 0 0 15 8 27 309 1 0 174 544 5 55 17 0 1158
Single Family Units^ LEAVENWORTH COUNTY Basehor 10 Lansing 1 Leav. County 6 Leavenworth 2 Tonganoxie 0 19 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill
APRIL 2014
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
10 1 6 2 0 19
30 1 20 3 9 63
0 0 0 0 0 0
0 0 0 0 0 0
30 1 20 3 9 63
4 0 8 12
0 0 0 0
0 0 0 0
4 0 8 12
4 1 54 59
0 0 0 0
0 0 0 0
4 1 54 59
0 4 0 0 1 5
0 0 0 0 0 0
0 0 0 0 0 0
0 4 0 0 1 5
0 15 0 0 3 18
0 0 0 0 0 0
0 0 0 0 0 0
0 15 0 0 3 18
441
0
327
768
1304
0
1159
2463
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
2007
2008
2009
2010
2011
2012
2013
2014
Annual Total
6,385
3,232
2,155
2,471
2,301
3,299
4,090
1,304
353 475 824 687 677 616 546 515 397 597 385 313
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
283 219 361 441
All numbers shown in the box above are ACTUAL numbers.
Comparison of Permits By Units Issued Year to Date* 2007-2014 2007 2008 2009 2010 2011 2012 2013 2014
S-F Units 2339 1277 540 762 601 917 1276 1304
M-F Units
180 1080 23 55 212 121 1281 1159
Total Units
2519 2357 563 817 813 1038 2557 2463
^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. 15
www.kchba.org | Volume 20, No. 6 | June 2014
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2014 Fall Parade of Homes
Sept 27 - Oct 11
Reach thousands of new home buyers with the 2nd largest Parade of Homes in the country! Let us promote your home for you. Media package includes: Television Radio Local Newspapers Magazines Billboards
Public Relations Social Media 20k+ Printed Guides Website Features Online Search Platform
Parade Entry Deadlines:
Early - July 11 | Regular - July 18 | Late - July 25 To enter your home, simply download a parade entry form online or contact Gina Battle at gina@kchba.org or (816) 733-2219.
kcparadeofhomes.com 16 POH Postcard.indd 1
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