Building Business News
Volume Volume17 18• •NO.7 NO.11
www.kchba.org
January 2013 November July2012. 2011
The Official Newspaper of The Home Builders Association of Greater Kansas City
Inaugural Dinner a Night of Celebration and Awards
HBA Annual Award recipients Steve Haynes, Misty Hanson, Mike Brown
The HBA’s Inaugural Dinner brought together members and guests for an evening of celebration and awards. The event is a special night to welcome the incoming President of the Board of Directors, the new executive committee, and present the annual HBA awards that recognize the outstanding contributions of individuals who have made a lasting and significant impact on housing in Kansas City. Those awards include the Bob Bollier Award for Sales and Marketing, the Fred J. Geier Associate of the Year, and the Builder Hall of Fame. See pages 6 and 7 for more on the 2012 Inaugural Dinner.
New Look for the Home Show and Flower, Lawn & Garden Show This month the HBA introduces a new logo as an enhancement to the Home Show that reflects the evolution of this Kansas City tradition. “We are continually looking at ways to present this marketplace to today’s customers who want to enjoy a Home Show experience,” said Lori Kodanaz, Director of Consumer & Trade Shows. “We are bringing in fresh talent, trendy features, and learning experiences. This new logo reflects the ideals that we are implementing for the 2013 event.” The new logo retained the traditional look and feel of the original Home Show PRSTRT STD U.S. Postage PAID Permit No. 108 Lawrence, Ks
because this is an event Kansas Citians know and trust. The clean, crisp and more modern design gives new consumers an enticement to take a fresh look at this action packed event with something for everyone’s home. In addition, the new logo reflects the perfect matching of the Home Show with the Flower, Lawn & Garden Show hosted by Kansas City Parks and Recreation.
“We have the fun of what Parks and Recreation brings to the event on their stage combined with the designer content on the Spaces stage and the teaching content on the Wall Wizard’s stage,” Said Kodanaz. “I feel we are covering a lot of good ground for the price of a ticket and connecting consumers with what they need and want for their homes.” The original Greater Kansas City Home Show and Flower, Lawn & Garden Show returns, March 22-24, to Bartle Hall. The Home Show has been part of Kansas City since 1948 as the premier home and garden event in the area.
Legislative Outlook for Kansas and Missouri The November 2012 election brought many new members to the Kansas and Missouri legislatures. While the makeup of the Kansas Legislature remains solidly Republican (Republicans retained a 92 to 33 advantage over Democrats in the House and 32 to 8 advantage in the Senate), there is a more conservative Republican party in charge. Most of the moderate Republicans who once helped to block many of Governor Sam Brownback’s proposals are no longer in office. The newly-elected lawmakers are expected to be far more supportive of the Governor’s agenda in the upcoming legislative session. Early in the legislative session, Kansas lawmakers will have to grapple with a $295 million per year budget shortfall stemming from Governor Brownback’s tax reform plan that passed earlier this year and significantly reduced income taxes. Many political analysts predict that lawmakers will need to make major cuts in spending, including possible cuts in infrastructure spending, when they take up the 2014 budget. Lawmakers may also be taking a look at keeping part of a penny sales tax that is supposed to expire next summer as well as eliminating many tax deductions and credits. The deduction Continued on page 11
Inside this Edition
Building Codes
P3
2013 Leadership
P4
January 2013
Calendar
Jan 3, 10 am
www.kchba.org
Education & Training Register online at www.kchba.org
Parade Committee
Economic Outlook with Elliot Eisenberg January 31, 12:30 a.m. - 2:00 p.m., Cost $25 (Lunch included), at the HBA
Jan 8, 11:30 am Kansas Area Council Jan 22-24
International Builders Show (IBS), Las Vegas
Hear a nationally recognized economist discuss the impact of proposed regulations, tax policy, demographics and budgeting on the economy and the outlook for home building, all delivered with a heavy dose of humor and cunning wit.
Business Management for Building Professionals February 6, 8:30 a.m. - 5:00 p.m., Cost $215, at the HBA
Jan 31, 12:30 pm Economic Outlook with Elliot Eisenberg
Learn the management skills that give industry leaders the edge. This course will offer best business practices in planning, organizing, staffing/directing and controlling.
Feb 6
Business Management Education
Feb 7 & 8
Certified Green Professional (CGP) Education
Feb 27, 28 & March 1
Certified New Homes Sales Professional (CSP) Education
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Volume 19 • NO. 1
Green Building for the Building Professional February 7-8, 8:30 a.m. - 5:00 p.m., Cost $370, at the HBA Learn how to apply the ANSI-approved National Green Building Standard™ in the construction of a new home, remodel, site development or multifamily project.
Marketing through Social Media Tri-Area Council Meeting, February 12, 11:30 a.m. - 1:00 p.m., Cost $25 (Lunch included), Maximum 50 at the HBA
For more information or to register for any event, go to www.kchba.org or call 816-942-8800
Kate McKinney, contributor to the Kansas City Business Journal on Social media, will lead this class on how to use social media to reach new customers and market your business.
Spring Parade of Homes April 20-May 5, 2013
Entry deadlines & pricing for a black & white or color rendering are: Members Non-Members Deadline B/W Color B/W Color
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Building Business News B
Volume 19 • NO.1
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January 2013.
Government & Politics
More Residential Building Code Changes Across the Kansas City Metro Several cities across the Kansas City metro area will soon be under a new residential building code. On December 3, the Leawood City Council approved the 2012 International Residential Code (IRC) with amendments. Some of the major changes to the code include provisions mandating carbon monoxide alarms, additional fire protection on I-joists and floor trusses in unfinished basements, tamper-resistant receptacles, and arc-fault protection for most receptacle outlets in the house. The enforcement date is set for April 1, 2013. On December 10, the Shawnee City
Council passed the 2012 IRC with amendments. After three public hearings on the subject, the City Council adopted the HERS program as a way to meet the energy efficiency requirements in the code. The Council also voted to adopt a provision mandating additional protection on the bottom of wood I-joist floor systems but voted to reject a provision mandating protection from roof ice dams (ice barriers). The enforcement date is set for April 1, 2013. In Missouri, the Independence City Council voted on December 3 to adopt the 2012 IRC, except for the energy section,
with an enforcement date of January 1, 2013. The energy section will be considered sometime in March or April to give the city’s building official time to develop a new rebate or incentive system. The idea is to provide flexibility to builders – the more energy efficient the home, the more money a builder may get back on building-related fees. The Director of Codes Administration in Lee’s Summit will likely present his codes proposal to the city council at the
end of February or early March. There is a longer process in Lee’s Summit as any proposal must first be vetted with a board of appeals and then through the community economic development council before it reaches the city council for final approval. HBA Codes Task Force members will continue to engage city officials, share the HBA’s position and provide a real-world perspective on any proposed code changes.
Industry News
Lower Operating Costs Mean New Home Buyers Can Afford More House A newly published study from NAHB Economics may help builders make the case to prospective buyers about why newly built homes are a better deal than older, existing ones. Using data from the 2011 American Housing Survey, the study first looked at how operating costs vary depending on the age of the home. It found that the average annual operating cost of a home is just over $6,900, with narrowly defined maintenance costs averaging $547 annually and fuels and property taxes – the largest operating cost components – averaging just under $2,500 each. However, the newer the home, the lower its per-square-foot operating costs. For example, homes built before 1960 have a $4.26 per-square-foot annual operating cost, versus just $2.92 per square foot for homes built after 2008. Moreover, operating costs as a fraction of the home’s value also decline regularly as the structure becomes newer, going from nearly 5% of Building Business News
the home’s value for structures built prior to 1960 to just under 3% for homes built after 2008. The study then provides an example showing that, if first-year cost is the constraint, a buyer can afford to pay a 23% premium for a new house (compared to one built prior to 1960), simply because it’s new. And based on results of NAHB’s House Price Estimator, that’s enough to put an additional full bathroom in a new home, with a couple thousand dollars left over. Read the complete study on HousingEconomics.com, and for more information, contact author Paul Emrath (800-368-5242 x8449). www.kchba.org
Page 3
Volume 19 • NO.1
HBA News & Events
Executive Committee President – Fred Delibero Vice President – Chris Ragland Secretary/Treasurer – Mark Mather Associate Representative – Tommy Angotti Immediate Past President – Kevin Stucker Executive Vice President – Sara Corless
Board of Directors Jeff Alpert The Alpert Companies Life Director Non Voting Tommy Angotti Factory Direct Appliance HBA Associate Representative/Elected At Large Associate Leo Ashner Bodine-Ashner Builders, Inc. Senior Life Director Mike Brown Brown Midwest, LC National Director Paul Burger Paul M. Burger Life Director Non Voting Jim Carlson Jim Carlson Construction, Inc. Life Director Non Voting Sara Corless Home Builders Association of GKC Executive Vice President Fred Delibero Summit Custom Homes, LLC HBA President/NAHB National Director Matthew Ernst Ernst Brothers Home Construction, Inc. Elected At Large Builder Craig Eymann Ambassador Construction Company, Inc. Honorary Member- non voting
Building Business News
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January 2013. J
2013 HBA Leadership as of November 2012
Jeff Goodwin Complete Home Concepts, Inc. Elected At Large Associate
James Lambie Lambie Custom Homes, Inc. Elected At Large KS Builder
Travis Graham Graham Construction Company Senior Life Director
Richard Link Richard Link Construction Co. Inc., DBA Legacy Custom Homes Life Director Non Voting
Rob Haas Jim Haas Builders, Inc. Elected At Large Builder Jim Haas, Jr. Jim Haas Builders, Inc. Alternate National Director
Brian Mather, GBI Richard Mather Builders, Inc. Life Director Voting
Mark Mather, GBI Mather Development HBA Secretary/Treasurer Alternate Director Richard Mather, GBI Richard Mather Builders, Inc. Senior Life Director John Moffitt Jr., CGB Moffitt Development dba Moffitt Built Senior Life Director
Continued on page 5
Nebraska Furniture Mart — 450,000 sq. ft. of top name Appliances, Electronics, Furniture, Flooring and more, all at Special Contractor Prices
Misty Hanson Stewart Title of Kansas City Elected At Large Associate Mark Hoffman Hoffman Construction, Inc. National Director Brenner Holland Hunt Midwest Real Estate Development, Inc. Elected At Large MO N Builder Bryan Keller McCray Lumber and Millwork Elected At Large Associate Gary Kerns Gary Kerns Homebuilders, LLC Elected At Large MO N Builder
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 completely 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.
Randy King King Building Inc. Elected At Large Builder Kevin Kirtley K & E Flatwork LLC Elected At Large Associate
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Jon Lambert Pacific Mutual Door & Window Elected At Large Associate
I-435 & State Ave. West • Kansas City, KS Near Kansas Speedway in Village West
Monday – Saturday: 10am to 9pm Sunday: 10am to 6pm Walk-ins welcome or schedule an appointment. ©2011 Nebraska Furniture Mart, Inc.
at Nebraska Furniture Mart
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Page 4 B
January Volume2013 19 • NO.1
www.kchba.org
Volume January 19 • 2013. NO. 1
Membership Drive Gives a Boost to the HBA The year-end membership drive brought in nearly 20 new members to the HBA. “The membership drive has been very productive,” said Phil Yancey, HBA Membership Manager. “There is a lot of interest in membership thanks to improvement in the industry and the benefits the HBA offers, especially the networking events and business discounts offered through NAHB.” Volunteers make all the difference in member recruitment so special thanks go
to the following volunteers: Ora Reynolds, Hunt Midwest Misty Hanson, Stewart Title Mindy Arnold, Designed 4 You Zalman Kohen, Summit Custom Homes Kevin Stucker, Summit Custom Homes Fred Delibero, Summit Custom Homes Mike Brown, Brown Midwest, Judy Johns, Keller Williams Mark Hoffman, Hoffman Construction Bob Frost, Frost Construction Welcome new members Adam Tobias and Bob James, Cable-Dahmer Chevrolet
2013 HBA Leadership
Tell the story of your great homes
Continued from page 4
James Neighbors James D. Neighbors Construction Company, Inc. Life Director Non Voting Daniel Norburg Norburg Contracting, Inc. Life Director Troy Pfeifer Pfeifer King Building Corporation Elected At Large Builder Justin Pfeifer Pfeifer Homes, Inc Elected At Large MO S Builder Harold Phelps Phelps Engineering, Inc. National Director - Associate
Bruce Rieke B L Rieke Custom Homes, Inc Alternate Director Hank Riffe Riffe Construction Co. Senior Life Director Austin Roeser Roeser Homes, LLC Elected At Large Builder
n reach Find out how you ca y Star kl over 1,000,000 wee ized readers with a custom ntial te po profile story. Show munity buyers why your com ll home. is a great place to ca
George Schluter GWS Inc. Life Director Voting Christopher Starr Starr Homes LLC Elected At Large Builder
Chris Ragland Homes by Chris LLC HBA Vice President
Kevin Stucker K Stucker Enterprises HBA Immediate Past President/NAHB National Director
Jerry Ratway Weber Carpet, Inc. Elected At Large Associate
Alan White First Federal Bank, F.S.B. Elected At Large Associate
Ora Reynolds Hunt Midwest Real Estate Development, Inc. Life Director
Tom Woods Woods Custom Homes LLC Senior Life Director/NAHB Executive Committee
Richard ‘Rocky’ Rhodes Allure Luxury Homes Elected At Large KS Builder Building Business News
To advertise, call your account executive or Kate Mariani-Vacek at (816) 234-4097. www.kchba.org
Page 5
January 2013
www.kchba.org
Volume 19 • NO. 1
Inaugural Dinner was an Evening of Celebration The HBA’s Inaugural Dinner brought together nearly 100 members and guests for an evening of celebration and awards at Brio Tuscan Grille on the Country Club Plaza. The event is a special night to welcome the incoming President of the Board of Directors, the new executive committee, and present the annual HBA awards.
More choIceS. More StYLe. LeSS tIMe. Mike Bromley and Dan Norburg
Kevin Stucker and Fred Delibero
Jessica and Greg Cox
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Now you can give your customers more choices while you spend less time finishing. With the 11 Exterior colors: Mix or match colors on sash, frame and new Andersen® A-Series system, windows trim to achieve hundreds of options. the and doors IntroducIng can arrive on the jobsite with Extensive exterior trim options: Our broad their interiors perfectly painted or stained. array of styles, colors and widths let you complement any architectural style. WindoW & door SyStem Exterior trim installs in less time than it can 9 Interior finishes: Six different factory stains, two paint take to check voice mail. Best of all, the results choices or a primed finish let homeowners create or Now you can give your customers more choices complement any look. arewhile undeniably beautiful. Stop in to learn more. you spend less time finishing. With the 11 Exterior colors: Mix or match colors on sash, frame and new Andersen® A-Series system, windows and doors can arrive on the jobsite with their interiors perfectly painted or stained. Exterior trim installs in less time than it can take to check voice mail. Best of all, the results are undeniably beautiful. Stop in to learn more.
trim to achieve hundreds of options.
3 Interior wood species: Select from the rich grain of natural pine, oak or maple for the window or door interior. 9 Interior finishes: Six different factory stains, two paint choices or a primed finish let homeowners create or complement any look. 3 Interior wood species: Select from the rich grain of natural pine, oak or maple for the window or door interior.
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Page 6
Kansas City’sCity’s Top Producing Anderson Dealer Kansas Top Producing Anderson Dealer
“ENERGY STAR” is a registered trademark of the U.S. Environmental Protection Agency. “Andersen” and all other marks where denoted are trademarks of Andersen Corporation. © 2010 Andersen Corporation. All rights reserved.
“ENERGY STAR” is a registered trademark of the U.S. Environmental Protection Agency. “Andersen” and all other marks where denoted are trademarks of Andersen Corporation. © 2010 Andersen Corporation. All rights reserved.
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Building Business News B
Volume 19 • NO.1
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January 2013.
A Memorable Night on the Plaza
Lois and Richard Mather
Alan White, Marty Albertson and Joel Hubbard
Jerry and Mary Jeanne Ratway
2012 HBA Annual Award Recipients Misty Hanson, Stewart Title Bob Bollier Award for Sales and Marketing Presented by Ken Rosberg, 2011 Award Recipient Misty Hanson grew up in Dallas, Texas and moved to Kansas City in 1987 where she graduated from Park Hill High School and then UMKC. During college she worked at Re/Max and says that’s when she caught the real estate bug. She now works for Stewart Title as the Business Development Officer. Misty earned her Real Estate license in 1997 and has continued to maintain that certification. Misty Hanson She first sold for J.D. Reece and then Reece & Nichols before going to work for Stewart Title as an escrow processor. She worked at a couple of other title companies before returning to Stewart Title six years ago. Misty’s sheer enthusiasm for real estate is what sets her apart as a professional and she is on a mission to create great experiences for her customers. It is that same enthusiasm Misty brings to her HBA involvement that makes her such a valuable leader for the association. She goes above and beyond to support the HBA and this year alone she energetically supported the membership drive, the clay shoot, the associates’ council, and she brought Stewart Title’s sponsorship to the Fall Parade of Homes. In fact, Stewart Title will also sponsor the 2013 Spring and Fall Parades. Misty says her HBA involvement has allowed her to see first-hand how the new home industry directly affects all aspects of the growth of a community. It has strengthened the relationships that she has with her customers, but mostly Misty says, she has made friendships that will last a lifetime. Building Business News
Steve Haynes, McCray Lumber and Millwork Fred J. Geier Associate of the Year Presented by Tommy Angotti, 2010 Award Recipient Steve Haynes is the Vice President and General Manager of McCray Lumber and Millwork. He is remarkably modest about his career in the construction industry that began early on in the Kansas City area. He worked as a trim carpenter and framer while going to school and received his Bachelor of Science degree from Missouri State in 1977. Steve Haynes Steve went into building material sales for a wholesaler, then for a manufacturer, and in 1987 he joined McCray Lumber and has been serving area home builders for more than 25 years. He attributes McCray Lumber and the company ideals for making such a positive impact on his career and in the housing industry. Steve furthers the legacy started by the McCray family by consistently supporting the HBA. In fact, just this spring the Home Show organizers had a vision of building a Garden Cottage in Bartle Hall and while a number of good people had become involved, what it needed was a leader to make it come to life. Thankfully, Steve Haynes and McCray Lumber stepped in to make it a reality and the Garden Cottage became the key feature of the Home Show. In addition, that building is literally a working Garden Cottage at Drumm Farm Center for Children in Independence. This kind of leadership is exactly what helps the HBA make a difference in our communities.
www.kchba.org
Continued on page 16
Page 7
January 2013
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HBA Industry News
Volume 19 • NO. 1
RS Unlimited Makes a Big Impact at the Home Show Whether it’s two or 25 acres, the professionals at RS Unlimited, Inc. are ready to create and to maintain landscaping and outdoor living that makes a statement. This new HBA member firm has been in business ten years and owner and President Ryan Bauer banks on the HBA Home Shows to create a living showcase for potential new customers. “We try to figure out something unique that catches the customer’s eye,” Bauer said. “We are careful to try to incorporate features that are not over-the-top, though, because we want people to see that we can do everything from the smaller project to the large outdoor transformation. We have learned from each show we do and we just keep wanting to do more and more at each event.” RS Unlimited has won several booth awards in the Spring show in the past nine years. Bauer estimates 80% of their annual new business is the direct result of participating in the shows. The rest, he adds, “is the result of good references from our satisfied clients.” Paul Gardner, Landscape Manager and Designer, has been in the landscape design business 21 years. He feels like the keys to their success include their willingness to involve
Page 8
the homeowners deeply in the process during the build and design phase, willingness to make plan changes along the way, take customers along to pick out features, and “above the board” customer service. “There is no job too small or no job too big,” Gardner said. “We have done several bubbler rock features as a result of the shows. They are little or no maintenance and you can run them all year-round.” Lori Kodanaz, Director of Consumer & Trade Shows for the HBA likes their attention to detail in the show. “I watch them work all week building their booth and they keep tweaking it and perfecting it right up until the hour we open. It is impressive to see their work ethic in action. Last spring, Paul brought in ducks to put in his water feature and the kids and adults loved that touch,” Kodanaz said. One of the company’s largest contracts is to maintain the Liberty Memorial. Louisberg native, Bauer, had an early interest in horticulture. In high school, Bauer ran the school greenhouse and was an award-winning FFA member. When he was 17 he could name over 200 plants, trees and flowers just by looking at a leaf. “This is my passion and my calling,” Bauer said.
Reserve your space today for Kansas City’s largest and longest running home and garden event.
Showcase your latest innovtions, products and services for thousands of qualified consumers.
Kansas City Convention Center –Bartle Hall | Friday-Sunday, March 22-24, 2013
13th & Broadway, Kansas City, MO
Booth spaces start at $975 for 10x10 | 10% discount to HBA and NARI members www.kchba.org
Building Business NewsBB
Volume 19 • NO.1 ** * * * * *
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January 2013.
New and Existing Single Family Home Prices, U.S. NEW HOME PRICES
2008 2009 2010 2011
EXISTING HOME PRICES
MEDIAN (1)
232.1 216.7 221.8 227.2
PCT CHANGE (2)
-6.4% -6.6% 2.4% 2.4%
MEAN (3)
292.6 270.9 272.9 267.9
PCT CHANGE (4)
-6.7% -7.4% 0.7% -1.8%
QUALITY ADJ INDX (5)
99.5 95.1 95.0 94.1
PCT CHANGE (6)
-5.2% -4.4% -0.1% -0.9%
MEDIAN (7)
196.6 172.1 173.1 166.2
PCT CHANGE (8)
-9.8% -12.5% 0.6% -4.0%
MEAN (9)
241.7 217.0 220.6 214.3
PCT CHANGE (10)
-9.2% -10.2% 1.7% -2.9%
2011 - Oct Nov Dec 2012 - Jan
224.8 214.3 218.6 221.7
10.1% -2.4% -9.4% -7.7%
258.3 250.0 262.9 265.7
1.5% -11.3% -9.9% -3.6%
93.6 94.2 94.3 94.1
-2.7% -2.7% -1.7% -0.3%
161.1 164.0 162.6 154.6
-6.1% -4.0% -4.0% -2.5%
206.4 210.7 209.8 201.0
-6.0% -4.0% -4.0% -2.9%
Feb Mar Apr May Jun Jul Aug Sep Oct
239.9 239.8 236.4 239.2 232.6 237.4 254.0 248.0 237.7
9.0% 8.8% 5.2% 7.7% -3.2% 3.3% 15.7% 14.3% 5.7%
274.0 283.6 287.9 280.9 271.8 282.3 300.9 291.4 278.9
4.3% 8.7% 7.1% 6.9% -0.5% 4.4% 16.0% 14.1% 8.0%
93.9 94.0 94.4 95.1 96.0 97.1 98.3 99.5
0.7% 0.6% 0.2% 0.3% 1.8% 4.0% 6.0% 7.2%
156.1 165.1 174.1 180.2 189.6 188.6 185.5 178.9 178.7
-0.5% 2.8% 7.9% 6.1% 7.7% 9.8% 8.4% 8.2% 10.9%
202.1 212.5 222.2 229.5 238.9 237.0 233.7 227.3 226.7
-0.4% 2.0% 5.6% 5.0% 5.2% 7.1% 6.3% 6.8% 9.8%
FHFA/ OFHEO INDEX (11)
205.6 194.4 188.5 180.5
PCT CHANGE (12)
-9.6% -2.1% -4.3% -2.4%
C/S INDEX (13)
151.3 133.9 134.2 128.3
PCT CHANGE (14)
-18.3% -2.4% -3.7% -3.7%
180.6
-2.4%
126.2
-3.7%
182.2
0.7%
128.2
-1.2%
185.8
3.3%
131.2
1.5%
187.9
4.0%
132.7
3.6%
For greater detail and analysis of these and other data, go to HousingEconomics.com For greater detail and analysis of these and other data, go to HousingEconomics.com (1),(3),(7),(9) Sales prices are in thousands of dollars, not seasonally adjusted. (2),(4),(6),(8),(10),(12),(14) Year-over-year percent change. NA = Not available. (5) 2005 = 100.0. The price index is designed to measure changes over time in the sales price Sales prices are of dollars, not important seasonally adjusted. including: (2),(4),(6),(8),(10),(12),(14) Year-over-year percent NA = Not available. of(1),(3),(7),(9) new single family homes which areinthethousands same with respect to several characteristics, floor area, geographic division, inside or outside change. of a metropolitan areas (MSAs), number of fireplaces, bathrooms and bedrooms, type of parking (5) 2005 price index is designed to measure over time in the of new family which aretype. the same with facility, type=of100.0. heating,The foundation and exterior, and whether unit has achanges deck. The weights for the indexsales are theprice proportion of single all housing unitshomes sold in 2005 of that (11) This index measures average price changes from repeat sales or refinancings of the respect to several important characteristics, including: floor area, geographic division, inside or outside of a metropolitan areas (MSAs), same single-family homes, whose mortgages have been purchased by the Fannie or Freddie Mac. 1980 Q1 = 100.00. (13) Thewhether S&P/Case-Shiller® National Home Price Index is a composite of single-family home price indices for number of fireplaces, bathrooms and bedrooms, type or ofsecuritized parking facility, type Mae of heating, foundation and exterior, and unit has aU.S. deck. for divisions, the indexcalculated are the quarterly. proportion all housing units sold 2005 ofSources: that type. theThe nineweights U.S. Census Notof seasonally adjusted. 2000 Q1in = 100.00 (1),(3),(5) U.S. Bureau of the Census, Construction Reports, Series C-25, New One Family Homes Sold and For Sale. (7),(9) National Association ThisHome indexSales. measures average price changes from repeat sales or Price refinancings the same single-family whose mortgages have pur- Department, NAHB. Available at www.HousingEconomics.com of(11) Realtors, (11) Office of Federal Housing Enterprise Oversight, Home Index (13)ofStandard & Poor's, Fiserv Inc.homes, and MacroMarkets LLC. Prepared bybeen Economics chased or securitized by the Fannie Mae or Freddie Mac. 1980 Q1 = 100.00. (13) The S&P/Case-Shiller® U.S. National Home Price Index is a composite of single-family home price indices for the nine U.S. Census divisions, calculated quarterly. Not seasonally adjusted. 2000 Q1 = 100.00
2.875% (2.936% APR*) OR LESS 10-YEAR FIXED-RATE MORTGAGES!
Sources: (1),(3),(5) U.S. Bureau of the Census, Construction Reports, Series C-25, New One Family Homes Sold and For Sale.
(7),(9) National Association of Realtors, Home Sales. (11) Office of Federal Housing Enterprise Oversight, Home Price Index. (13) Standard & Poor's, Fiserv Inc. and MacroMarkets LLC. Prepared by Economics Department, NAHB. Available at www.HousingEconomics.com
*
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November January 2013 2012
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Volume Volume 1819 • NO. • NO. 11. 1
Happy Anniversary
The strength of an association is in its membership and a thank you goes out to all of those members who continue to support the HBA.
1948 Overhead Door Company of K.C. 1958 Beverly Lumber Company 1967 Moffitt Development Company, Inc. 1972 Shamrock Cabinet 1985 Locks & Pulls 1986 Riffe Homes, Inc. 1987 Prieb Homes, Inc. 1989 Hearthside Homes of Kansas City, Inc. 1990 Sherri L. Weaver Design, L.L.C. 1991 Dahmer Construction, Inc. 1993 Borger Construction Inc
1995 Bank Midwest, N.A. Realty Executives of Kansas City 1996 Morrill & Janes Bank 1997 Owen Lumber Company 1999 Timberstone Homes, Inc. 2002 Teague Lumber Company 2003 31-W Insulation Company, Inc. 2004 Steve Scherer Construction Company Aerus Electrolux 2005 Crockett Electric Inc 2006 Midwest Custom Builders, LLC Principal Builders, LLC 2007 K Hill Builders Koehler Wharton Homes
2007 First Community Bank Certainteed Corporation Surface Center Interiors Blackburn’s All Star Roofing, Inc. 2008 A Place Called Home Const. Co., Inc. Fairfield Courts LLC Miller’s Custom Cabinets LIT Development Estes Custom Homes Quality Hill Square 2009 Performance Plus Homes Singleton Construction LLC 2010 Blake Construction LLC Jo Co Mtg Lowe’s of Roeland Park 2011 K. C. Builders & Design, Inc. Franklin Quality Homes LLC Pinnacle Construction Co, Inc Suburban Land Reserve
5 Solid Reasons to Call K&E Flatwork Today!
816-746-6100
Lumber
Concrete
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Rebar
HBA Staff
Office: 816-942-8800 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 Tour & Membership Records Coordinator gina@kchba.org, 816-733-2219 Marcia Jurgens Permit & Accounting Mgr. marcia@kchba.org, 816-733-2215 Stephanie Stollsteimer Director of Marketing and Communications stephanie@kchba.org, 816-733-2213
B I
J
Lori Kodanaz Director of Consumer & Trade Shows lori@kchba.org, 816-733-2217
Gravel
One Call We Do It All
2011 Price Residential Group LLC High Plains Construction II, LLC Allendale Builders, LLC Hilmann Home Building Inc ProSource of Lenexa Savannah Building Company Lennox Industries Carpenters District Council of Greater St. Louis
Andrew McKeegan Association Services Manager Andrew@kchba.org, 816-733-2224
Workers A PROFESSIONAL CONCRETE FLATWORK COMPANY • • • • •
Affordable, Upfont Pricing High-Quality Concrete Flatwork Exceptional Customer Service A Professionally Trained Staff Serving Kansas and Missouri WWW.KEFLATWORK.COM
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Cindy Pearson Events Support Cindy@kchba.org, 816-733-2247 Phil Yancey Membership Manager Phil@kchba.org, 816-733-2245 Megan Fratzke Marketing Assistant mfratzke@kchba.org, 816-942-8800
Building Business News B
Volume 19 • NO.1
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Welcome New Members Congratulations to our new members. Let’s make them feel at home! Thomas Johnson Realty Executive Area Realtors 100 NW Englewood Road Gladstone, MO 64118 (816)-453-9100 Bluewing67@sbcglobal.net Ed Buckley AIC Insulation, Drywall, Roofing, Stucco, Stone 1330 S Hamilton Circle Olathe, KS 66061 (913) 390-0904 aic_eb@yahoo.com Brad Korn The Korn Team 19045 E Valley View Pkwy Ste H Independence, MO 64055 (816) 224-5676 www.kornteam.com brad@kornteam.com
Kevin Oldham United Marketing Solutions 2820 NW Barry Road Kansas City, MO 64154 (816) 420-6242 www.umarketingservices.com koldham@unitedcountry.com Matt Schlict Engineering Solutions 50 SE 30th St Lee’s Summit, MO 64082 (816) 623-9888 www.engineeringsolutionskc.com esinfo@es-kc.com Tom Bart British Traditions 12901 2nd St Grandview, MO 64030 thomasbart@britishtraditions.com Cyndie Roche Wells Fargo Home Mortgage 7400 West 130th Street, Suite 320 Overland Park, KS 66213-2682 cyndie.roche@wellsfargo.com
January 2013.
Legislative Outlook for interest on home mortgages survived the last session and the HBA will continue to be vigilant about protecting this important benefit. A review of the tax code in Missouri is expected as more lawmakers worry about remaining competitive with the new tax policies in Kansas. Governor Jay Nixon convened a Tax Credit Review Commission with the mission to “review each of the state’s 61 tax credit programs and make recommendations for greater efficacy and enhanced return on investment.” Missouri’s Speaker of the House, Tim Jones, has also indicated that reforming tax credits is at the top of his agenda. Other items on the agenda include ensuring solvency of workers’ compensation and Second Injury Fund, making employment laws consistent with national standards, and repairing and rebuilding the state’s infrastructure. Some political experts predict that the Continued from page 1
legislature will be busy grappling with the shortfall in the state’s unemployment fund, which is a big cost to employers and on an unsustainable path. Attempts to reform both the state’s unemployment fund and second injury fund have been unsuccessful in the past. The HBA will be watching closely for any renewed interest in establishing a uniform state-wide fire and building code, legislation that was proposed in the last legislative session. We will also be monitoring the Missouri General Assembly for any legislation mandating sprinkler systems. Finally, the HBA would like to encourage its members to join the delegation to Topeka and Jefferson City for its annual legislative days. These are critical times with a lot at stake for the housing industry. Your voice has never been more important.
We currently install traditional batt insulation, three types of sprayed in wall fiber, fiberglass & cellulose blow, open & closed cell foam, rigid foam board, fireplaces, and siding. With all these choices and
Build Opportunity at the NAHB International Builders Show
Call us, we’re the best!
challenges of code and Energy Star you can work with a Henges consultant to achieve your goals.
January 22-24, 2013 in Las Vegas More than fifty HBA member companies will be represented by nearly 150 individuals at the International Builders Show, January 22-24 in Las Vegas. IBS is the largest annual light construction show in the world where the exhibit floor presents miles of the latest and most advanced building products and services ever assembled. See all of the innovations for yourself with hands-on demonstrations and working models in over 300 building industry categories at this National Association Home Builders’ annual convention. In addition, more than 150 education
Building Business News
sessions covering topics ranging from industry trends to how home builders are retaking the market. The New American Home will again feature design, construction and amenities that are market driven and showcase the latest in innovative products for the future of home building. Information and registration are online at www. buildersshow.com. The HBA’s designated hotel is the Wynn Las Vegas which also is the NAHB headquarters hotel, www.wynnlasvegas.com.
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Taking the guess work out of building an energy efficient home. From 1932 till now, a lot of things have changed, but Henges is still here to help you.
www.hengesinsulation.com • 913-764-4600 Page 11
January 2013
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Industry News
The GM NAHB Private Offer $500 Continues
NAHB members can get a $500 private offer toward the purchase or lease of most new GM vehicles. Learn more at: gmfleet.com/nahb How it works: 1. Get your NAHB proof of membership form at nahb.org/ma. 2. Bring form to your GM dealer and mention this private offer. 3. At time of purchase or lease, present your NAHB proof of membership. More valuable offers for business owners are available through the GM Business Choice Program. Choose one great option for each eligible vehicle you purchase or lease. Details at gmfleet.com/nahb.
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Volume 19 • NO. 1
Under Pressure from Home Builders, OSHA Delays Fall Protection Guideline Changes Home builders and remodelers have been given a reprieve from new, more stringent fall protection regulations from the Occupational Safety and Health Administration (OSHA) that were expected to take effect in December. The previously announced phasein period for home builders to comply with the new Compliance Guidance for Residential Construction has been extended until March 15, 2013 to allow the industry more time to learn about the rule and get compliance assistance from the federal agency. “We are very pleased that OSHA heeded our calls,” said NAHB Chairman Barry Rutenberg, a longtime advocate of sensible, practical regulations that protect workers from falls – the mostcited violation by OSHA in residential construction. NAHB has long held that the new regulations, including requirements that all residential construction companies must ensure that any employees or subcontractors doing work six feet above ground or floor level must be protected with guardrail, safety net or personal fall arrest systems, could actually cause greater danger on the job site than using alternate methods that home builders say are safer. For additional information OSHA prepared a Power Point presentation
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entitled, “Residential Fall Protection Program Update” available on OSHA’s website at https://www.osha.gov/doc/ residential_fall_protection/ppt/. In addition NAHB’s Resource Guide – Fall Protection Training is available att: http://www.nahb.org/fileUpload_details. aspx?contentID=167466. For more general information, both OSHA and NAHB have websites for residential fall protection information. Here are the links to these sites: www.osha.gov/doc/residential_fall_ protection. www.nahb.org/fallprotection
Building Business News B
Volume 19 18 • NO.1 NO.11
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November January 2012. 2013.
Click this logo at
www.kchba.org to login to your account
Online Resources for HBA Members! Register for HBA Events Safe & secure online registration Personalized calendar of events. Notification of your events
Update Your Membership Change your profile, contact info & membership directory listings.
Call today 816-942-8800, or email gina@kchba.org or scorless@kchba.org
register www.kchba.org for events online
BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY
January 2013 • Volume 19 Issue 1 Copyright 2013 Published by the Home Builders Association of Greater Kansas City 600 E. 103rd Street, Kansas City, Mo. 64131 (816) 942-8800 Executive Vice President Sara Corless Editor Stephanie Stollsteimer Contributing Writer: Beatriz Ibarra Graphics Karla Peterie, Creative Services 2013 Executive Committee Home Builders Association of Greater Kansas City President Fred Delibero Vice President Chris Ragland Secretary/Treasurer Mark Mather Associate Representative Tommy Angotti Immediate Past President Kevin Stucker To subscribe to Building Business News, call (816) 733-2224 To advertise in Building Business News call (816) 942-8800 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
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HBA 2012 SPONSORS
January 2013
Page 14
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Platinum
Bank of Blue Valley
Gold
SILVER Henges Insulation & Fireplace Phelps Engineering ProBuild United Heating & Cooling
Capitol Federal Factory Direct Appliance Ferguson Enterprises bronze First Federal Bank Commerce Bank K & E Flatwork Complete Home Concepts Kansas City Star First American Title Kenny’s Tile Hermes Landscaping McCray Lumber & Millwork Kansas City Title Kitchens & Baths by Briggs Nebraska Furniture Mart Pacific Mutual Door Owen Lumber Pella Products Shamrock Cabinet ProSource of Lenexa Sun Lumber Western Chandelier Weber Flooring
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Volume 19 • NO. 1
Housing Continues to Improve in Metro Area
Housing production continues to outpace the years since 2008 in cities across the Greater Kansas City Metropolitan Area. The trend through November continues up as reflected in the monthly average of single family permits. In 2012 that average was 274 compared to 2011 with 192, 2010 with 207, 2009 with 180, and 2008 with 269. Single family permits in November were higher than the yearly average to date and totaled 283 for the best November since 2007. Multifamily housing production continued to climb with 332 permits of which 302 were in Grain Valley, Missouri and 30 in Paola, Kansas, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. “The Metro area has avoided the slide that occurred in the fourth quarter of the last three years,” said Executive Vice President Sara Corless. “By all accounts the home building industry is continuing to improve which is an important signal of stability amidst the slowly emerging recovery. The main thing that’s still limiting progress is the difficulty that potential buyers continue to experience with regard to overly tight mortgage qualifying standards.” The share of new permits per county has remained relatively unchanged since 2011 with Johnson County at 38 percent, Clay County at 20 and Jackson County with 18 percent. Platte County’s number of permits issued has the highest percentage increase doubling over last year with 314 permits in 2012 compared to 157 in 2011. Cities in the top ten year to date include Kansas City, Missouri with 567, Olathe with 397, Overland Park with 332, Lee’s Summit with 258, Platte County with 153, Shawnee with 129, Lenexa with 114, Kansas City, Kansas with 100, Blue Springs with 82, and Leawood with 68.
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Volume 19 • NO.1
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January 2013.
HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY
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
Building Business News
Single Family Units^
M-F Units Sale%
M-F Units Rent
0 0 5 0 0 0 1 1 1 0 1 11 1 21
0 0 0 0 0 0 0 0 0 0 0 0 0 0
5 0 0 25 6 0 4 0 0 0 40 2 0 4 9 0 5 1 4 5 33 1 0 0 64
Residential Building Permit Statistics November 2012 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 5 0 0 0 1 1 1 0 1 11 1 21
0 5 32 0 0 1 4 3 22 2 15 63 14 161
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 32 0 0 1 4 3 22 2 15 63 14 161
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 25 6 0 4 0 0 0 40
49 28 1 417 46 0 33 0 0 41 615
0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
49 28 1 417 46 0 33 0 0 41 615
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 302 0 0 0 0 0 0 0 0 0 302
2 0 4 311 0 5 1 4 5 33 1 0 0 366
82 0 27 23 27 58 32 39 9 236 3 1 1 538
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 5 302 0 0 0 69 0 0 0 0 0 376
82 0 32 325 27 58 32 108 9 236 3 1 1 914
0 4 1 0 23 0 0 0 28
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 4 1 0 23 0 0 0 28
1 111 47 0 153 1 1 0 314
0 20 0 0 0 0 0 0 20
0 298 0 0 0 0 0 0 298
1 429 47 0 153 1 1 0 632
0 0 0 9 3 6 9 4 0 39 19 0 14 1 104
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
0 0 0 9 3 6 9 4 0 39 19 0 14 1 104
9 0 0 39 16 68 114 9 1 397 332 4 129 32 1150
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 292 0 0 0 230 0 0 0 522
9 0 0 39 16 68 406 9 1 397 562 4 129 32 1672
Single Family Units^ LEAVENWORTH COUNTY Basehor 6 Lansing 0 Leav. County 0 Leavenworth 2 Tonganoxie 2 10
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
6 0 0 2 2 10
36 15 11 18 13 93
0 0 0 0 0 0
0 0 0 0 0 0
36 15 11 18 13 93
0 0 0 0
0 0 0 0
5 0 11 16
22 2 100 124
0 0 0 0
0 0 377 377
22 2 477 501
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 30 0 30
0 0 0 30 0 30
2 18 0 1 3 24
0 0 0 0 0 0
0 0 0 30 0 30
2 18 0 31 3 54
283
0
332
615
3019
20
1603
4642
WYANDOTTE COUNTY Bonner Springs 5 Edwardsville 0 KCK/Wyandotte Co 11 16 MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill
November 2012
Comparison of Single Family Totals 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
2006 750 833 1066 899 971 761 772 874 677 672 609 500
2007 353 475 824 687 677 616 546 515 397 597 385 313
2008 221 262 353 441 231 260 311 293 264 314 167 115
2009 96 129 131 184 189 204 196 207 219 226 192 182
2010 137 145 252 228 213 239 180 243 173 279 173 209
2011 90 121 180 210 230 262 204 205 202 205 185 207
2012 188 182 270 277 293 268 288 260 379 331 283
Annual Total*
9,384
6,385
3,232
2,155
2,471
2,301
3,019
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*Annual totals may not match seasonally adjusted numbers.
Comparison of Permits By Units Issued Year to Date* 2006-2012 2006 2007 2008 2009 2010 2011 2012
S-F Units
8884 6072 3117 1973 2262 2094 3019
M-F Units
3150 1378 1830 692 253 600 1623
Total Units
12034 7450 4947 2665 2515 2694 4642
*Annual totals may not match seasonally adjusted numbers. ^The Single Family number is now 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.
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January 2013
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Volume 19 • NO. 1
2012 HBA Annual Award Recipients Continued from page 6
Mike Brown, Brown Midwest Builder Hall of Fame Award Presented by Travis Graham, 2011 Award Recipient Mike Brown is originally from Wyandotte County where he grew up in Kansas City, Kansas and then Bonner Springs until his parents moved to Shawnee where Mike graduated from Shawnee Mission Northwest High School in 1987, attended Johnson County Community College and then Kansas State University. Mike has been the General Managing
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Partner of Brown Midwest based in Olathe, Kansas since 1996 where he has created beautiful and functional communities designed for quality living. In the late nineties, Mike was the HBA’s largest volume builder and over the years he has won his fair share of the Pick of the Parade and American Dream awards. His success as a homebuilder is only part of his charm. To know Mike Brown is to know an overachiever. He has influenced the housing industry in ways too numerous to list both locally with the HBA and nationally with NAHB. He served as
Mike Brown
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president of the HBA in 2007 and his mantra seems to be once you’ve served as president you will be responsible to the HBA for life. He is only a phone call away to lend his expertise. His passion lies in the world of policy and politics and he avidly advocates for the interests of homebuilders from Topeka to Washington DC. He makes a point of understanding the positions and the players when it comes to promoting our industry and our communities. Mike will joke that he is just taking care of his business, but we all know better. We are glad he is on our side.
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