Building Business News October 2020

October 2020

Election 2020: Amplify Your Voice See pages 12-13 600 E. 103rd Street | Kansas City, MO 64131

On the Cover: Cover story

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Guide to the Upcoming Elections View a map of the KC region that identifies jurisdictions in which PAC has approved a contribution.

Features Time to Start Thinking about 2021

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The new year will be here before we know it and as your considering how best to market your business consider the KCHBA.

Share Your KCHBA Story with Others in October

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The Membership Committee is asking you to tell the story of the KCHBA to those who need to hear it. Ask them to join us in this noble cause. A broader coalition adds more force to our collective voice — and earn some rewards for doing it.

It’s Time Cast Your Ballot for the KCHBA for Board of Directors Make your voice heard! Don’t forget to vote for the KCHBA’s 2021 elected leaders.

In Every Issue New Members

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Anniversaries 21 Residential Permit Statistics

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Relationships with Policymakers Can Make or Break our Ability to Earn a Living

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ne of the primary functions of the KCHBA to engage with policymakers and the political campaign system to ensure that the voices and perspectives of the residential construction industry are heard loud and clear. The KCHBA obviously employs staff that build, grow, and maintain relationships with policymakers at every level of government. In the absence of this year round approach, the important story our members live every day would go untold. And your experiences, perspectives, and viewpoints are worth hearing.

Committee (PAC) has been hard at work identifying and interviewing candidates for local and state elected positions.

By making strategic political contributions and explaining the dynamics of home building in today’s environment, the KCHBA and its PAC are laying important groundwork that will affect everyone.

There is no better example of the weight this industry brings to bear in the policymaking world than how residential construction was treated at the onset of the Covid-19 pandemic. A frantic flurry of local and state ordinances responding to an invisible and largely unknown enemy introduced us to the term “essential business.” What industries were to be essential?

Did that mean that businesses not deemed essential weren’t otherwise important? These were questions that crossed my mind as I burned up the phone lines seeking information and explaining home building’s unique and irreplaceable role in the economy of our entire region.

If the first presidential debate is any indication, politics can be a messy and even off-putting enterprise.

In this issue of BBN, you will see a map of the Kansas City region dotted by a series of KCHBA logos that identify political jurisdictions in which the PAC has approved a contribution. You’ll see what I mean when I said that the PAC has been busy. You may also see what might appear to be an imbalance between Kansas and Missouri contributions. This is due to the fact that the entire Kansas legislature, 125 representatives and 40 senators, are on November’s ballot whereas Missouri’s entire legislature is not.

These candidates, a mix of incumbents and political newcomers, have demonstrated a willingness to engage with our industry, absorb our perspectives, and commit to working together to address housing issues.

If the first presidential debate is any indication, politics can be a messy and even off-putting enterprise. But it would be a mistake for us to tune out our responsibility to participate in the process in a meaningful way.

We’re fortunate that we did not have to learn what non-essential meant. From the get-go, residential construction, home building, and those activities related to home building were either explicitly or indirectly included in every stay-at-home order issued in our jurisdiction over those turbulent weeks in March.

I’ll close this message by pointing out that PAC activity and frequent conversations with policymakers are not the only tools we have at our disposal. At the end of the day, voter turnout will determine what our leadership will look like and it’s important that each of us take some time to support those who support us.

This is admittedly a (hopefully) rare extreme example of how our relationships with policymakers can make or break our ability to earn a living. But had we not executed a long-term commitment to engaging with government, I shudder to think about what our industry would look like today.

In the event you’ve not had access to a tv or the internet over the past year, we’ve got an election coming up on Nov. 3. The choices we as individuals make at the ballot box directly affect the markets in which each of us works. The HBA Political Action

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Oct./Nov. Calendar Oct. 10-25 Fall Parade of Homes Oct. 14

Parade Awards Ceremony

Oct. 16

Associate Appreciation+ Clay Shoot

Oct. 28

Area Council – Virtual Event

Nov. 18

Area Council – Virtual Event

Greg Prieb Named a Kansas City Business Journal NextGen Leader

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he NextGen Leaders program honors 25 rising stars in Kansas City business. A panel of six judges selected the honorees. To be eligible, nominees must live and work in the Kansas City metro area. The program seeks to recognize the budding talent and to connect these emerging leaders while helping build their knowledge and skill sets.

Greg Prieb is president of Prieb Homes, handling single and multifamily residential construction along with development and property management. His roles include identifying land to develop with housing for sale or lease. He is also involved in bidding, sales, obtaining permits and loans and managing a staff of nearly 40 employees.

NATURAL GAS BRINGS YOU SAVINGS FOR YOUR FUTURE.

Although his parents tried to introduce him to other career options, Prieb was set on joining the family business. Prieb said he can be obsessive about his work and has a love of maps. “I bring work home, and when the kids go to bed, I spread things out on the table and look at it. I really enjoy my job. I’m thankful I get to do something I love so much,” said Prieb.

Homeowners save with natural gas.

Natural gas furnaces heat homes more efficiently than electric heat pumps: the average household can save $400 to $500 a year with a natural gas furnace.

Prieb currently serves on the KCHBA Board of Directors and was elected to the Lake Quivira City Council in 2019. In his free time he enjoys spending time at the lake with his family.

A BETTER TOMORROW STARTS TODAY. www.kansasgasservice.com

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Forgivable PPP Loans May be Taxable in Some States

SBA Issues FAQ on PPP Loan Forgiveness

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usinesses who received loans under the Payroll Protection Program (PPP) may be eligible to have that loan forgiven, which may result in unforeseen tax consequences. The federal Internal Revenue Code generally treats forgiven debt as taxable income; fortunately, Congress has excluded forgiven PPP loans from federal taxable income. However, as noted in a recent blog post by the Small Business Administration, that income may still be treated as taxable by your state.

The vast majority of state income tax systems conform to some degree with the federal tax code, but that does not mean all states will adopt the federal rules for forgiven PPP loans. Twenty-one states plus the District of Columbia automatically conform to the latest changes in the federal tax code. In 19 states, however, the state legislature must vote to conform to any recent changes in the federal code.

For a deeper dive into state conformity and the approaches taken by individual states, the Tax Foundation offers more background.

To avoid any unexpected tax surprises, NAHB recommends small businesses who have a forgiven PPP loan consult with their tax professional to determine if those loan proceeds will trigger a taxable event in their state. Additionally, if those loan proceeds are treated as taxable income, expenses paid out with the PPP loan may be deductible under your state code, something that is not currently permitted federally. Again, consult with your tax professional for advice.

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he Small Business Administration has issued an FAQ on loan forgiveness under the Paycheck Protection Program (PPP). Any members who have received PPP loans must be very careful that they follow all conditions and requirements of these loans in order to be eligible for forgiveness.

Members who have been having issues with loan forgiveness under the PPP are encouraged to contact Amy Chai at NAHB at 1-800-368-5242, x8232 or Heather Voorman at x8425.

Visit the 2020 Fall Parade of Homes

SAB Homes • 820 Bridgeshire • Tour #65

JFE Construction • 496 Wilds Parkway • Tour #110

A Place Called Home • 1805 NE Palisade Ct. • Tour #102

Gary Kerns Homebuilders • 12213 N Virginia Ave • Tour #53

Sheperd Homes • 19714 W 197th Ct. • Tour #117

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Bickimer Homes • 14375 S Parkhill • Tour #226

Don Julian Builders • 212 Carnoustie Ct. • Tour #80

Willis Custom Homes • 14516 Birch St • Tour #161

McGraw Homes • 1908 NE Catalina Ave. • Tour #88

New Mark Homes • 5779 Russet • Tour #10

Monticello Homes • 1901 NE Park Ridge Dr • Tour #86

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To Our Sponsors:

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he KCHBA Board of Directors and staff want to thank our elite partners for their generous support in 2020. The unforeseen spread of Covid-19 forced us to reinvent the approaches this organization utilizes to best serve its members and sponsors.

With that said, it’s important to highlight the numerous positive outcomes we’ve achieved as an industry and as an organization that were only made possible through your investment in the mission of the KCHBA. In 2020, the KCHBA… • Secured an “essential” designation for our industry in local jurisdictions and across two states to ensure that our members could continue to provide housing which has contributed to a 15 percent increase in single family permits YTD. • Recalibrated the Parade of Homes to adhere to local, state, and federal health guidelines to ensure that our industry could generate and meet the demand of KC-area consumers at a time when many other organizations in other cities were cancelling their new homes tours.

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• Reached tens of thousands of new consumers through our proprietary Parade of Homes mobile app and Web site.

• Produced an Economic Forecast Breakfast headlined by Federal Reserve Governor Michele Bowman that drew 200+ attendees and as well as the attention of the national media.

STARTS HERE

• Contributed more than $40,000 to charitable organizations like Veterans’ Community Project, Make-a-Wish, Habitat for Humanity, and more through the HBA Foundation Fund.

• Established a Professional Women in Building Council to cultivate a culture of leadership and recognition for our entire industry.

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• Contributed to a dialogue between key members of Congress, the Trump administration, and the National Association of Home Builders to address the spike in lumber prices in which the U.S. Secretary of Commerce Wilbur Ross repeatedly acknowledged the critical role home building plays in the U.S. economy.

©2019 Nebraska Furniture Mart, Inc.

While not an exhaustive list of the outstanding things we’ve accomplished together, it is clear that this is a serious organization that gets results for its members. The KCHBA does not exist to serve itself. It exists to serve the members. Its guiding principle is to create an economic environment in which your company can thrive.

None of these accomplishments would have been possible without the financial support of our annual sponsors. As an organization, Continued on page 10

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HBA 101: Discover Your Voice Assists New Members in Finding Their Place

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he Home Builders Association of Greater Kansas City (KCHBA) is the voice of the housing industry. As such, the KCHBA Membership Committee wanted to help the association’s newest members learn more about what the association does, how they benefit and where they fit in.

To do so, KCHBA hosted a webinar last month called HBA 101: Discover Your Voice. During the hour-long Zoom call, KCHBA Executive Vice President Will Ruder walked attendees through the basics of how the association works and the different councils and committees that make up the organization.

Along the way, attendees heard from KCHBA President Jerry Braklow who shared the value he has received through the organization and NAHB Field Representative Dave Ashley, who shared the benefits at the national level. They also had the opportunity to hear from each of the KCHBA committee chairs, who explained a little bit about the focus of their committee and how they provide value to members.

The Membership Committee hopes to do these HBA 101 sessions regularly so if you missed this one, watch for details on the next one in the KCHBA’s weekly e-newsletter This Week at the HBA and/or the website.

To Our Sponsors: Continued from page 9

KCHBA is committed to being the best investment you make all year. When you invest in this association, you are investing in your own business and the growth of the entire industry. Without this investment, we are far less capable of responding to economic threats or taking advantage of opportunities.

The phrase we’ve repeatedly heard since the onset of Covid-19 is that, “We’re all in this together.” That phrase has always applied to the KCHBA and the industry it serves. We thank you for your support in 2020 and any support you may provide moving forward.

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The KCHBA’s Professional Women in Building Council is dedicated to promoting industry professionalism and supporting members. PWB members are engaged in all aspects of the building industry and are members of the KCHBA.

NEW KCPWB MEMBERS:

JOIN KCPWB! ANNUAL DUES ARE $100 BUT JOIN NOW FOR A SPECIAL DUES RATE THROUGH 2020 FOR $50.

FOR MORE INFORMATION CONTACT COURTNEY@KCHBA.ORG OR CALL 816.942.8800

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Election 2020:

H 63

H 11 H 12

Amplify Your Voice

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S 4 H 36 H 22

H 33

H 26

H 8

S 37

H 6

KANSAS

S 12

HOUSE

H6 - Samantha Poetter H8 - Chris Croft H16 - Rashard Young H18 - Cindy Neighbor H21 - Jerry Stogsdill H22 - Lindsay Vaughn H26 - Adam Thomas H27 - Sean Tarwater H32 - Pam Curtis H33 - Tom Burroughs H36 - Kathy Wolfe Moore H43 - Bill Sutton H49 - Megan Lynn H63 - John Eplee H78 - Ron Ryckman H121 - John Resman

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SENATE

S4 - David Haley S8 - Cindy Holscher S11 - Kellie Warren S12 - Caryn Tyson S21 - Tom Bickimer S23 - Robert Olson S37 - Molly Baumgardner

JOHNSON COUNTY COMMISSION

JC 2 - Jeff Meyers JC 6 - Mike Brown

H 16 H 49

H 43

H 21

S 21 S 8

JC 6

H 32

H 18

JC 2

H 121

S 7

H 78

S 11 S 23

H 27

H 38

S 11 H 18 H 20

S 9

H 32 H 30 H 31

H 55

S 31

MISSOURI

S 7

HOUSE

SENATE

H11 - Brenda Shields H12 - Josh Hurlbert H18 - Wes Rogers H20 - Bill Kidd H30 - Jon Patterson H31 - Dan Stacy H32 - Jeff Coleman H38 - Doug Richey H55 - Mike Haffner

S7 - Greg Razer S9 - Barbara Washington S11 - J.J. Rizzo S17 - Lauren Arthur S31 - Rick Brattin

STATE WIDE

Governor Mike Parson

*This is not an exhaustive list of potential housing-friendly candidates; only a list of candidates who received contributions this cycle.

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Our team is ready to help!

Visit nasb.com/construction to connect with a Loan Officer.

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Janet M. Betsch, Private Mortgage Banker Office: 913-663-6048, Cell: 913-433-6221 janet.m.betsch@wellsfargo.com www.wfhm.com/loans/janet-betsch NMSLR ID 400435

Available on jumbo loans with a down payment of 10.01% – 19.99% when purchasing a primary residence with a maximum loan amount of $750,000 (up to $1.5 million in some areas). Other restrictions apply; consult with a Private Mortgage Banker for details.

This information is for real estate and building professionals only and is not intended for consumer distribution.

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. © 2018 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS4829982 Expires 05/2019

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Share the Value of the KCHBA & Earn Rewards

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ur homes are no longer simply where we sleep. Our homes are where we work, where we work-out, and where we teach our children.

As the voice of the housing industry, go out and tell the story of the KCHBA to those who need to hear it! Ask them to join us in this noble cause. A broader coalition adds more force to our collective voice. We’re strong, but we can always be stronger.

During October, you can earn a free future Parade entry or a $1,500 credit toward sponsorship by bringing in at least five new member companies.

The fact is that your annual dues boil down to $1.85 per day. For $1.85 a day, you have access to full breadth and depth of everything the KCHBA and our National Association of Home Builders (NAHB) has to offer. For $1.85 a day, you have access to a professional staff of KCHBA employees solely devoted to promoting, educating, growing, and fighting for your business.

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Contact Dawn@kchba.org with questions or to request membership materials.

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ctober is Careers in Construction Month, a month-long celebration of the rewarding and well-compensated career paths available in the home building industry. This year brings an added urgency Careers in Construction Month as demand for new homes is skyrocketing but home builders report labor shortages, at the same time as there are millions of Americans looking for work after the havoc wrecked on the economy by the coronavirus pandemic and shutdowns. Builders, trades contractors, Associate members, office workers, business managers…everyone is encouraged to post a photo or video of themselves in their work space on social this month and tag #kchba #careersinconstruction.

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UPCOMING EDUCATION Certified Aging in Place Specialist (CAPS)

Classes are 7:30 a.m.-3:30 p.m. Four dates available for each class- pick what day works for you! Successful completion of CAPS I, II, III is required to earn CAPS designation. NAHB members pay $575 for all three classes; $200 for a single class.

Go to ezwaytostay.com/upcoming-courses for more info and to register. Education questions? Reach out to Paige@kchba.org.

CAPS I – Marketing and Communicating with the Aging in Place Client Pick one: available Nov. 5, Nov. 6, Dec. 3, Dec. 4 Millions of Americans are living longer and more active lives. Because they are embracing newly found and changing lifestyles, they need to revitalize their home environment. Identifying this burgeoning opportunity and then developing the skills to interact with this market can help you grow your business dramatically.

The goal of the course is to equip course participants with the knowledge and tools to effectively market and sell services to the aging in place (AIP) market.

CAPS II – Design Concepts for Livable Homes and Aging in Place Pick one: available Nov. 12, Nov. 13, Dec. 10, Dec. 11 The goal of this course is to enable participants to identify common challenges within the home and understand attractive design concepts that create a safe and comfortable environment for clients who want to age in place as well as identify with one or more of these groups: individuals who are not experiencing health issues related to aging, individuals who have a progressive or other condition that requires home modifications or equipment and/or individuals who are dealing with an abrupt or traumatic health-related change. The course also presents various methods and techniques for modifying home design from the perspective of new construction and retrofitting.

CAPS III - Details and Solutions for Livable Homes and Aging in Place Pick one: available Nov. 19, Nov. 20, Dec. 17, Dec. 18 This course builds on the CAPS I & II courses (which are prerequisites for this course) by introducing design solution techniques, innovative products and best practices for product installation for CAPS professionals to utilize when creating livable homes in which to Age-In-Place. Participants will engage in hands-on activities from real case studies to apply material learned in all CAPS courses.

KCHBA affiliate and primary members belong to NAHB and will receive the member rate. Not sure about your KCHBA membership status? Contact Dawn@kchba.org.

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Meet the 2021 KCHBA Board of Director Candidates Associate At-Large - Elected

Builder – Elected, Missouri South Council

Incumbent - Richard Holtcamp, North American Savings Bank Richard Holtcamp has been actively involved with the KCHBA since 2008. Holtcamp served as an Associate at-large Board member for two consecutive terms beginning in 2014, joining the Board again in 2019. He is an advocate for Associate events, both attending and chairing numerous KCHBA functions over the years, including chairman of the 2018 Clay Shoot. He was the 2017 recipient of the Fred J. Geier Associate of the Year Award.

Holtcamp currently serves on the Executive Committee and Finance Committee. NASB has been a KCHBA member since 1964.

Holtcamp and NASB are longtime annual sponsors currently at the Silver level.

Justin Pfeifer, Pfeifer Homes Justin Pfeifer is a current Board member. Pfeifer served as the 2017 and 2019 Parade of Homes Committee chair. He served as co-chair for the 2017 Missouri South Council and was chairman in 2018. Pfeifer is also active within the HBA Foundation committee. In 2013, Pfeifer was awarded the inaugural Next Generation Builder award.

Builder – Elected, Missouri North Council Dennis Shriver, Hearthside Homes Dennis Shriver is the owner of Hearthside Homes. He has spent his entire career in the homebuilding and development industry.

Shriver currently serves on the Board of Directors and is an active participant in KCHBA/KCMO staff meetings. He has been a member of the Developers Council and Missouri North Council.

Incumbent - Rosemary Vitale, ReeceNichols Rosemary Vitale is licensed real estate broker in Kansas and Missouri and has been involved in new home sales since 1988. She is currently Vice President of New Homes with ReeceNichols. Vitale served as a commissioner on the Missouri Real Estate Commission from 2006-2019. She was the recipient of the 2017 Bob Bollier Award for Sales and Marketing. Along with the Sales and Marketing Committee, Vitale has served on the KCHBA Executive Committee. Vitale has been a Board member since 2015 and also serves on the Parade Committee.

Mike Powell, BeHome Mike Powell started BeHome in 2014. He served on the Missouri North Council as co-chair in 2019 and chairman in 2020.

Builder - Elected at Large Jeff Ashner, Ashner Construction Company, Inc. Jeff Ashner is a current KCHBA Board member, his first term beginning in 2015. He has served on the Artisan Home Tour Committee and currently serves on the Foundation Committee. Ashner has won multiple local and national awards, including a Best in American Living Award for Specialty Design for his 2018 Artisan Home Tour entry. Ashner served on Kansas Area council as cochair in 2019 and chairman in 2020.

Bryan Ballweg, Teague Lumber Bryan Ballweg is active within the KCHBA. He is a member of the Parade Committee and KCHBA Young Professionals group. Ballweg’s current role at Teague Lumber is Sales Manager. He has been involved in the building industry for over 20 years. Ballweg and Teague Lumber are Bronze sponsors of the KCHBA.

Shawn Woods, Ashlar Homes Shawn Woods is a third-generation home builder. In 2011, he established Ashlar Homes and joined the KCHBA. Woods was the 2014 Next Generation Builder award recipient. He served as KCHBA president in 2019 and is currently on the ladder as Immediate Past President. He has also served on the KCHBA Finance Committee, Developers Council, Workforce Committee and the Government Affairs Committee.

Ben Hutchinson, Ferguson Ben Hutchinson has been very active with the KCHBA over the past 5 years. His involvement spans many KCHBA events, including the Kansas City Home and Lifestyle Show Task Force.

Hutchinson was an integral part of the SMART home for the 2019 and 2020 Home and Lifestyle Show. Hutchinson and Ferguson have been longtime annual KCHBA sponsors, including presenting sponsor for the 2020 Artisan Home Tour.

Matt Adam, Matt Adam Development Matt Adam has made a name for himself over the past 20 years by developing more than 10 high-end communities in Johnson County. Notable features in a Matt Adam development are the commissioned bronze art statues and top-notch community clubhouses.

Adam was the winner of the 2019 Bob Bollier Award for Sales and Marketing. Adam is a longtime KCHBA member and participates in the Developers Council.

Builder – Elected, Kansas Council Richard “Rocky” Rhodes, Allure Luxury Homes Rocky Rhodes is a second-generation home builder, joining the family business in 1985 and launching Allure Luxury Homes in 2011. He is a current Foundation Committee and KCHBA Board member and has served on the Artisan Home Tour Committee.

Continued on page 20

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A PROMISE

FOR THE FUTURE. From the foundation to the roof, every part of a new home is a promise for the future.

Let’s work on that promise together with the right construction and mortgage lending options, a strong plan and the integrity to build homes to move our community

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New Members Custom Lawn & Landscape, Inc. Tim Brown 15204 S. Keeler St., Olathe, KS 66062 (913) 782-8315 www.customlawn.com Echo Systems Midwest Brian West 660 N. Lindenwood Dr., Olathe, KS 66062 (913) 663-3366 www.echosystemsmidwest.com ReeceNichols Stephen White 11601 Granada Lane, Leawood, KS 66211 (816) 373-9292

Affiliate Stewart Title of Kansas City Beth Smith 700 NE RD Mize Rd, Ste 200 Blue Springs, MO 64014 (913) 825-5112

FINANCING HOMES

Candidates

FROM THE GROUND UP.

Continued from page 18

Ladder Nomination – Secretary/Treasurer The right property. The right builder. The right materials.

You need all three to take a dream and make it a home.

Brian Tebbenkamp, Patriot Homes Brian Tebbenkamp has been a KCHBA member since 2015. Tebbenkamp was the recipient of the 2018 Next Generation Builder Award. He is a current Board Member and served as the 2019 Young Professionals committee co-chair and 2020 chairman. Another recent achievement is constructing the SMART Home for the 2019 and 2020 Home and Lifestyle Show, along with being a Home Show Task Force member. Tebbenkamp served as co-chair of Missouri North Council in 2018 and 2020, serving as chair in 2019 and 2021.

Choosing the right lender matters too. Our experienced team, extensive construction and mortgage loan programs and streamlined processes have made us one of Kansas City’s top home lenders. We stand ready to help builders and consumers finance home construction, from application to closing.

LET’S GET BUILDING.

Congratulations to the 2021 KCHBA Board of Director Nominees!

KCHBA Primaries are eligible to vote on Board candidates.

Ballots for 2021 will be sent out via email this month.

fidelitybank.com | 913.808.4006

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Anniversaries 1975 Teague Electric Construction Inc 1977 Weber Carpet, Inc. 1981 AFC Heating & Cooling 1984 Wilson Lighting 1986 Commerce Bank 1989 Star Companies, Inc. 1992 Builders FirstSource 1993 Rew Materials Inc 1994 Mack Colt Homes Inc

2009 Wheeler Homes Arrow Circle Electric, Inc. Crowley Furniture Show Me Ready Mix, LLC Country Home Elevator & Lifts R W Investments, LLC 2013 Providence Homes, LLC 2015 Best Lighting Wholesale Sheet Metal Lawn and Landscape Solutions Cool Insulation 2016 Regency Homes, LLC 2017 Canaan Stone Works, LLC

1996 Ken Sidorowicz, PC 1997 Vasut Construction, Inc. 1998 Farm & Home Builders Inc. 1999 Gary Kerns Homebuilders, LLC 2002 Summit Homes 2004 Stewart Builders LLC 2007 Decor & Company Warehouse LLC Platte-Clay Electric Coop 2008 Applause Custom Sight & Sound

HBA Staff Will Ruder Executive Vice President will@kchba.org 816-733-2216 Dawn Allen Director of Member Services & Partnerships dawn@kchba.org 816-733-2241 Kelcee Allen Director of Parade of Homes/Digital Content Strategist kelcee@kchba.org 816-733-2246 Kari English Senior Director of Communications & Strategy kari@kchba.org 816-733-2213 Marcia Jurgens Vice President of Administration marcia@kchba.org 816-733-2215 Courtney Reyes Director of Government Affairs & Workforce Development courtney@kchba.org 816-733-2214 Paige Waltman Manager of Communications & Education paige@kchba.org 816-733-2217 Jordynn Webster Manager of Government Affairs & Workforce Development jordynn@kchba.org 816-733-2218

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2018 MRC, LLC Grandview Winnelson Craig Brett Homes, LLC Ruby Turner Realty IMOTO Photo Two Men and a Truck Be Home Symphony Homes LLC Andersen Windows, Inc. 2019 Invent Development LLC Murray Home Insulation Rural Water Services, Inc. B&T Contractors Community Construction, LLC LoveOurRoof, an Xcel Company

Single Family Permits Down Slightly in August

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he number of single-family housing permits issued in August in the Kansas City metro surpassed the permitting activity for the month of August last year, according to statistics compiled by the Home Builders Association of Greater Kansas City (KCHBA). The organization reported a total of 443 single-family homes permitted in August, which is down slightly from the 493 homes permitted in July.

“Housing starts in the Kansas City metro are up 15 percent overall for 2020,” said KCHBA Executive Vice President Will Ruder.

“Consumer demand driven by historically low interest rates and low inventories of homes for sale has certainly contributed to the uptick in new starts. However, a 170 percent increase in lumber costs since mid-April coupled with an ongoing labor shortage in the skilled trades may temper the volume and velocity at which new home construction can respond to the needs of the market.”

Kansas City, Mo., issued the most single-family permits in August with 98, followed by Olathe, Kan., with 56; Lee’s Summit, Mo., with 44; KCK/Wyandotte Co., with 42; and Blue Springs with 23 rounding out the top five permitting cities.

The number of single-family permits pulled in Kansas City, Mo., year to date is 641, up 30 percent from this same time last year. Olathe is up 28 percent from 296 permits year-to-date in 2019 and Lee’s Summit is up 14 percent compared to this time last year.

The Official Publication of the Home Builders Association of Greater Kansas City

October 2020 • Volume 26 • Issue 9 Copyright 2020

Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 • (816) 942-8800

Editor Kari English Contributing Writers Marcia Jurgens, Paige Waltman Graphics Karla Peterie, Creative Services 2020 Executive Committee President Jerry Braklow Vice President Kevin Kirtley Executive Vice President Will Ruder Secretary/Treasurer Tommy Bickimer Immediate Past President Shawn Woods Associate Representative Richard Holtcamp Past Presidents Representative Bob Frost

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Residential Building Permit Statistics

Residential Building Permit Statistics AUGUST 2020 CASS COUNTY Archie Belton Cass County Cleveland 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 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 Roeland Park Shawnee Spring Hill Westwood

Single MultiS-F M-F Total Family Family Total Units Units Units Units^ Units% Units YTD YTD YTD 0 1 0 0 0 0 2 2 0 0 0 0 5

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

0 1 0 0 0 0 2 2 0 0 0 0 5

5 186 11 0 0 7 26 14 24 9 71 7 360

0 0 0 0 0 0 0 0 0 0 396 0 396

5 186 11 0 0 7 26 14 24 9 467 7 756

0 1 0 57 1 0 5 0 0 3 67

0 0 0 0 0 0 0 0 0 0 0

0 1 0 57 1 0 5 0 0 3 67

19 16 2 390 30 0 27 0 0 29 513

0 0 0 315 0 0 0 0 0 0 315

19 16 2 705 30 0 27 0 0 29 828

23 0 0 3 0 7 10 5 0 44 0 0 0 92

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

23 0 0 3 0 7 10 5 0 44 0 0 0 92

169 0 71 12 0 58 45 80 0 266 0 0 0 701

0 0 48 0 0 0 0 116 0 314 0 0 0 478

169 0 119 12 0 58 45 196 0 580 0 0 0 1179

36 16 0 11 1 0 0 64

0 0 0 0 0 0 0 0

36 16 0 11 1 0 0 64

171 43 7 80 13 0 0 314

0 0 0 0 0 0 0 0

171 43 7 80 13 0 0 314

6 0 0 6 1 8 19 0 0 56 22 9 0 11 13 0 151

0 0 0 0 0 0 6 0 0 1 0 0 0 0 0 0 7

6 0 0 6 1 8 25 0 0 57 22 9 0 11 13 0 158

36 0 0 59 22 34 144 0 0 412 233 47 0 65 73 1 1126

56 0 0 0 0 0 392 0 0 96 0 0 0 67 0 0 611

92 0 0 59 22 34 536 0 0 508 233 47 0 132 73 1 1737

August 2020

Single MultiS-F M-F Family Family Total Units Units Units^ Units% Units YTD YTD LEAVENWORTH COUNTY Basehor 11 0 53 0 11 Lansing 0 0 11 0 0 Leav. County 0 0 46 0 0 Leavenworth 0 0 30 0 0 Tonganoxie 1 0 26 0 1 12 0 12 166 0 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill Totals

Total Units YTD 53 11 46 30 26 166

0 0 42 42

0 0 0 0

0 0 42 42

6 0 183 189

0 0 4 4

6 0 187 193

0 4 0 0 6 10

0 0 0 0 0 0

0 4 0 0 6 10

6 39 0 1 17 63

0 0 0 0 0 0

6 39 0 1 17 63

443

7

450

3432

1804

5236

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 Annual Total

2013 273 224 335 444 337 333 409 354 384 369 340 288 4,090

2014 287 216 362 439 385 364 375 352 383 468 312 328

2015 240 260 393 437 395 438 399 425 462 459 360 432

2016 274 408 542 523 503 578 494 536 424 466 417 352

2017 2018 457 463 477 463 571 549 562 564 504 598 567 569 512 485 480 514 514 353 583 485 502 354 468 276

2019 234 234 357 411 391 387 471 429 396 500 410 434

2020 355 475 438 434 374 420 493 443

4,271

4,700

5,517

6,197

4,654

3432

5,673

Comparison of Permits By Units Issued Year to Date

2013 - 2020 2013 2014 2015 2016 2017 2018 2019 2020

S-F Units 2709 2780 2987 3858 4130 4205 2914 3432

M-F Units 1881 2271 1765 3062 1213 2345 1447 1804

Total Units 4590 5051 4752 6920 5343 6550 4361 5236

^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units. # 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 2020 Home Builders Assoc of Greater Kansas City. All rights reserved.

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2020 HBA Sponsors

Featured Panelist on This Week in Missouri Politics: KCHBA EO Will Ruder

O

n the Sept. 20 show of This Week in Missouri Politics, Scott Faughn sat down with KCHBA Executive Officer Will Ruder and Danny Pfeifer of the Catalyst Group to discuss the impact Covid-19 has had on housing in Kansas City and how the industry is moving forward.

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“Where we live has never been more important… It has created a re-emphasis on the place we call home,” said Ruder.

Builders FirstSource

Over the past six months, many people have slowly found using the kitchen table as a desk is a less than ideal situation. The demand for the luxury of more space and historically low interest rates are two major factors pushing the residential construction industry forward.

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Housing plays an extremely vital role in the fabric of the city itself and how visitors and residents experience it. Faughn touched on the overall optimistic vibe of the city, noting “people are excited to be from Kansas City.” Pfiefer agrees that “Kansas City has been on the uptick for a little while now” citing winning professional sports teams and a solid local economy as contributing factors.

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There are many reasons why buying a home in Kansas City is appealing to so many people. “The quality of life that exists here in Kansas City is second to none,” said Ruder. “I think that is reflected in the amount of new construction that is going on in Kansas City. Our permits year to date are up 17 percent this year over last.” Ruder points out the ability to grow is almost limitless, with 360 degrees of opportunity. “There is a tremendous sense of optimism. It’s a cautious optimism. I think people still bare the scars of what happened to the economy 12 years ago, related to housing,” commented Ruder.

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The 2020 data provides a positive outlook on the future of housing in Kansas City, but it shouldn’t be taken for granted.

“Homebuilding is not unlike water or air,” said Ruder. “It’s going to flow to areas where there is less pressure. And so the greater level of regulatory scrutiny or the processes required to put this product in the ground, then there are other options for people to build. We’re going to build homes in places that people want to live and at a price point that they can afford. They have more regional options than simply staying in one ZIP code,” explained Ruder.

Thanks to all of our 2020 Sponsors 24