Building Business News - February 2012

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Building Business News NEWS Volume 17 • NO.7

February July 2012 2011 July 2010

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The Official Newspaper of The Home Builders Association ofofGreater The Official Newspaper of The Home Builders Association GreaterKansas KansasCity City

Inside this Edition Past Presidents Gather Kansas Tax Reform Proposed by Governor, Lawmakers HBA Hosts Golf Tournament HBA members came out in full force for the 2010 Annual HBA Golf Tournament on Friday, June 9th at the Falcon Ridge Golf Club in Lenexa, KS. Renewed interest in the tournament was gratifying for everyone involved with 144 golfers and a portion of the proceeds benefiting two important charities. The Salvation Army and Hillcrest Transitional Housing were presented with checks from Home Builders Association Foundation Fund to support their important work. The day started with a continental breakfast and registration where golfers could purchase mulligans and skirts to raise extra money for the charities on hand. A putting contest sponsored by The Kansas City Star where the winner brought home a new putter. To spice up this year’s event, co-chairs Tommy Angotti (Factory Direct Appliance) and Deb Swearingen (Pinnacle Bank) offered games throughout the day to Governor Sam Brownback keep golfers entertained. The longest drive, longest putt, and everyone’s favorite hole, where golfers could opt to put on a skirt and tee off from the women’s tee box. Finishing the day was a lunch and awards ceremony where checks were On the tolong back normal presented the road charities andtotournament winners. from the most devastating recession

A national discussion about the mortgage interest deduction has found its way to Kansas. While lawmakers will consider many issues this session – school finance reform, redistricting, the state employee retirement system – none have garnered as much attention as tax reform. Kansas Governor Sam Brownback proposed a change in state tax policy during his State of the State that lowers income tax rates. To do so includes eliminating most credits and deductions, including the mortgage interest deduction. Republican leaders in the Kansas House of Representatives have unveiled their own plan to lower income tax rates while preserving the mortgage interest deduction. “The HBA is committed to ensuring the final product is in the best interests of Kansas homeowners and homebuyers,” said HBA Executive Vice President Sara Corless. “We applaud the Governor and House leaders for working to strengthen the state’s economy and to create jobs. Homeownership must be a vital component of Continued on page 3 that plan and the discussion.” Thank you to the 2010 HBA Golf Tournament Sponsors

NAHB Looks for Modest Improvements in 2012

since the Great Depression, the nation’s beleaguered housing industry should see modest improvement in 2012 and stronger conditions in 2013, according to participants in a January 11 NAHB webinar on the outlook for the new year. Looking at just where housing is headed this year, NAHB Chief Economist David Crowe said that, “We are starting 2012 with the same amount of optimism we started in 2011.” Unfortunately, he said, 2011 turned out to be significantly weaker than projected due to a range of factors, including a run-up in energy prices, slumping employment growth, a big dive in consumer confidence, an unusually PRSTRT STD U.S. Postage PAID Permit No. 108 Lawrence, Ks

Aristocrat Homes Capitol Federal Continental Title Company Crowley Furniture harsh winter at home, a disastrous Factory Direct Appliance tsunami in Japan, First American Title and the unsettling spectacle Congress to a Grandviewof Winnelson - Thecoming Water Close Kitchen and Bath Showroom standstill over raising the deficit ceiling. Guier Fence Company, Inc. This year has begun on a more Huber Engineered Woods

Kansas City Homes and Garden Kansas City Star featuring KansasCity.com and HomeFinder.com Nebraskaand Furniture Mart aftermath, featuring B/S/H recession its weak even Pacific Mutual Door & Window declining into negative territory during a ProBuild few quarters. Stewart Title of Kansas City Tile andrecently, Stone Warehouse Most in the third quarter of Top Master 2011, household formations rose above Western Chandelier Company theWilson traditional Fans &historical Lighting rate of increase,

auspicious note, with economic growth, job creation, unemployment claims, Congratulations to the Tournament Winnerssuggesting a return to a normal pace of sthousehold formations, particularly consumer confidence, home foreclosures 1st Place A Flight 1 Place B Flight and homeKen sales all showing favorable among young people. Rosberg Harley SaxcoCrowe calculated Austin signs by the end Roeser of 2011, he said. that there Greg is a Prieb backlog of as many as John Judge Randy Bailey that have yet to “While Jeff thisSheppard won’t be a roaring year, 2 million households Rex Fuller because of the downturn. there willAbe an improvement,” Crowe be2ndformed 2nd Place Flight Place B Flight Don Klamm are now beginning said. Perhaps most reassuring is that Those households David Eickman Josh Bright Richard asWetzel young adults who the economy has begun to emerge from to materialize Ryan Bealmear Chris Williams parents or friends when the its demographic doldrums, he said, resided with Matt Nordstrom Sterling Cramer rd 3rd Place A Flight was bad now find themselves with more growth in the number of economy 3 Place B Flight Bob Kobush Russ Grossman of moving out and households. From a traditional average on the threshold Gary Ely Lea Bailes growth rate of a little over 1%, annual renting or buying a home. Brandon Johnson Brandon Frazee householdJim formations faltered during the Continued on page 3 Bray Todd Jennings

Mark your Calendar

October 2-17, 2010

NAHB Remodelers Awards for a Special Evening

P3 Tax Credit Extension

P5 EPA Responds to Lead Rule

P9

Mike and Kim Brown (2007)

2010 Fallof the Home The Past Presidents Builders Association gathered for an Builders Association annualHome dinner, January 6, at Avenues of Greater Kansas City They Bistro at Mission Farms. welcomed 2010 HBA President, Janet Pereira, to the group that has members from across the generations. The evening was very special with three past presidents with more than 50 years of service to the industry including 1966 president Chuck Bleakley and his Mark your calendar for the 2010 Fall wifeParade Jean,of 1974 Jim Young, Homes. president Since 1947, the Parade of andHomes 1993has president Leo Ashner and his been Kansas City’s local resource buying a newAlso home.among The 2010 the Paradegroup of wifefor Dottye. Homes returns October 2-17. were two other past presidents who have provided leadership and service for over Schedule 40 Parade years, Entry Richard Mather, 1978, and July 16 Hank Rife, 1985. Janet, the Deadline first woman president of Late Entry $1,995 the association, was presented with her past president medallion. “We wanted The final deadline for home entires is July 16, to recognize Janet for her service in 2010. Entry Home Information, Community oneInformation, of the most difficult yearsStyle since Region and Housing wasthe

Parade of Homes

Final Deadline

due on June 25. ToContinued submit your entry for 8 on page the Final Deadline , visit www.kchba.net/ parade2010 or call the HBA office at (816) 942-8800

Inside this Edition

IBA Concept Home 2011 top builders

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February 2012

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Calendar

Lunch with NAHB Economist Elliot Eisenberg, March 1

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

Feb 2, 10 am Tour Committee Meeting Feb 8-11, 2012 NAHB IBS in Orlando HBA Charitable Feb 13, 2 pm Foundation Meeting Feb 14, 11:30 am Kansas Area Council Executive Committee Feb 15 Meeting Feb 21, 11:30 am Board of Directors March 1, 11:30 am Lunch with Economist Elliot Eisenberg March 6 Missouri Legislative Day

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Volume 18• NO.2.

Elliot Eisenberg, Ph.D., the Senior Economist for NAHB, will be our featured speaker at a special lunch Thursday, March 1, 11:30 a.m. at the HBA. Dr. Eisenberg is a frequent speaker on housing and housing related topics including; the economic impact of homebuilding, the unintended consequences of government regulations C on house prices, how to reduce construction risk and boost builder profits. The program is $25 for HBA members and $30 for non-members. Register at www.kchba.org.

2012 Important Dates Feb 8-11 March 6 March 23-25 April 14-29 April 18 June 6-9 Sept 12-15 Sept 29-Oct 14 Oct 3 Sept 14-16

NAHB International Builders Show (IBS) Missouri Legislative Day Greater Kansas City Home Show and Flower Lawn & Garden Show Spring Parade of Homes American Dream Awards Ceremony NAHB Spring Board Meeting (Washington DC) NAHB Fall Board Meeting (Austin, TX) Fall Parade of Homes Fall Parade of Homes Awards Ceremony Home Show-Fall Edition

Important Spring Parade of Homes Dates

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American Dream Awards Ceremony

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Volume 18 • NO. 2

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HBA Government

February 2012.

Kansas Tax Reform Proposed by Governor, Lawmakers

Continued from page 1 The Governor’s proposed plan which he describes as fairer, flatter, and simpler consolidates income tax rates from three brackets to two and lowers the rates. Those making under $15,000 ($30,000 married filing jointly) would pay a 3 percent rate while those making more would pay 4.9 percent. Currently tax rates are 3.5 percent, 6.25 percent and 6.45 percent. The plan would also eliminate individual income tax on non-wage business income for LLCs, S-corps and sole proprietorships on lines 12, 17 and 18 of the federal form 1040 individual income tax return. The corporate income tax rate would be unchanged. To help fund the plan, the Governor proposed eliminating itemized deductions and some credits. Additionally, the sales tax rate would remain at 6.3 percent. House Republican Leadership has presented their own plan, incorporating many parts of the Governor’s plan. The House plan will keep in place the current statutory tax deductions, including the

mortgage interest deduction. It lowers the income tax rate as new revenue grows more than 2 percent will buy down the tax rate. It also includes the small business non-wage profit proposal in the Governor’s plan. However, it keeps the statutory sunset with the sales tax rate returning to 5.7 percent. Senate President Steve Morris, R-Hugoton, formed a tax study group last fall to analyze options for reducing taxes in Kansas in order to create a more business-friendly environment. The bipartisan study group, will be comprised of both senators and members of the public, has held hearings this session. A Kansas City Star article covering the elimination of the mortgage interest deduction included comments from the HBA. “Mortgage interest deduction is certainly a cornerstone of homeownership, and it strengthens communities and it puts people to work,” said Corless in the article. The state conversation on the mortgage interest deduction comes on the heels of

NAHB Looks for Modest Improvements in 2012

Continued from page 1 Crowe added that housing fundamentals remain favorable. Mortgage interest rates are low, and even as they creep up a bit as the economic recovery gains strength and there is more demand for credit, rates should be relatively low through the end of 2012. House prices have returned to their normal ratio of about 3.2 times income, down from 4.7 at the peak of the housing boom in 2005.

As the recovery continues to unfold, employment & consumer confidence show further improvement, home purchases will start picking up again, Crowe said, which will lead to more construction. Single-family home starts are projected to climb to 501,000 in 2012, up 17% from 2011, which could turn out to be the worst year on record. Multifamily production is forecasted to climb another 17% in 2012, reaching the 208,000-unit level.

NAHB releasing a new poll finding that voters overwhelming favor the federal mortgage interest deduction. The poll shows that three out of four voters – both owners and renters -- believe it is appropriate and reasonable for the federal government to provide tax incentives to promote homeownership. Moreover, 73 percent of voters oppose eliminating the mortgage interest deduction. The poll also found 96 percent of home owners are happy with their decision to own; 79 percent of home owners would advise a family member or close friend

just starting out to buy a home; 78 percent of respondents said that owning their own home is very important to them; and nearly seven out of 10 voters who are not currently home owners (68 percent) said it was a goal of theirs to buy a home. “Even in a down housing market, homeownership remains a core American value, with the vast majority of citizens who do not currently own a home saying they want to buy a home,” said Bob Nielsen, president of the National Association of Home Builders and a home builder from Reno, Nevada.

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Register Now for Missouri Legislative Day, March 6 Builders and associates will deliver the home building industry’s message to lawmakers at the annual HBA Legislative Day trip to the Missouri State Capitol in Jefferson City, Tuesday, March 6. Missouri Legislative Day is an annual event established to advocate Building Business News

for housing issues and network with fellow HBA members from the state. A full schedule of events is posted and registration is available on www.kchba. org. If you have questions contact Steven Cowen at 816-733-2237 or scowen@kchba.org.

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February 2012

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HBA Events & News

Volume 18• NO.2.

Welcome New Director of Consumer & Trade Shows We are pleased to announce our newest team member at the HBA, Lori Kodanaz, Director of Consumer and Trade Shows. Lori replaces Katherine Morgan who returns to the Pacific Northwest in a new position with a prominent developer. Lori is moving forward with all of the great plans for the Home Show. A Kansas City native and graduate of William Jewell College, Lori spent 17 years in sales and marketing with the IBM Corporation. She has been active in fund-raising and volunteer roles throughout the city and comes to us with a passion to serve the Home Builders Association. For more information, contact Lori at 816-733-2217 or lori@kchba.org. Lori Kodanaz, Director of Consumer and

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Pictured are: Greg Cox, Summit Custom Homes, Rob Ellerman, Reece and Nichols, Zalman Kohen, Summit Custom Homes, Dave Redlin, “Safety Dave”, Justin Pfeifer, Pfeifer Homes,

Safety Dave Educates HBA Members About Best Practices, OSHA Compliance Continuing ongoing efforts of the HBA and Progressive Environmental & Safety to promote construction site safety, Safety Dave Redlin addressed the Missouri South Area Council membership lunch in January. Redlin detailed best practices, updated attendees on new regulations, and provided resources for HBA members to ensure safe and compliant job sites. “Providing a safe job site saves lives, reduces the risk of injury, presents a great product for the consumer and can help with insurance coverage,” said Redlin. Redlin shared good news in the construction industry. He discussed how the housing forecast is looking up in 2012, there were no local residential construction fatalities in 2011, and OSHA announced they are scaling back many of the staggering fees that have recently been imposed on the residential building community. Many factors will still require the attention of the residential building industry, however, Redlin noted. There were three roofer fatalities in 2011, OSHA has ramped up residential construction enforcement and new regulations are being or will be enforced. Effective January 4, the Department of Transportation has banned cell phone use in 10,000lb and larger trucks. In November, OSHA will require crane

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certification. In June of 2011 slide guards on roofs are longer be allowed and Residential Construction requirements are the same as commercial standards. Falls remain the number one cause of fatalities in residential construction. Redlin says builders need to have a fall construction plan in place detailing how and where protection will be used on the jobsite and how safe work practices will be used. Guard rails, floor coverings and personal fall arrest systems are great ways to ensure fall protection compliance and have safe work sites. Simple efforts can go a long ways to promoting a culture of worksite safety. Redlin suggest posting “danger area” signs on construction site, ensuring hard hats are being utilized, and keeping the site clean. Progressive Environmental & Safety www.safetydave.biz 913-406-2825 www.nahb.org www.biulderbooks.com www.osha.gov Missouri Division of Labor Standards http://labor.mo.gov/DLS/ 573-751-3403 Kansas Department of Labor http://www.dol.ks.gov/ 785-296-4386

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Volume 18 • NO. 2

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HBA Events & News

February 2012.

Travis Graham Awarded NAHB Senior Life Director HBA members had a terrific time in November at the Business After Hours event hosted at Kitchens & Baths by Briggs located in Lenexa. This is the largest decorative plumbing showroom in the Kansas City Metropolitan area with over 6,000 square feet featuring a beautiful selection of faucets, sinks, custom showers, bathtubs, & bathroom vanities. In addition, decorative accessories and mirrors provide the finishing touches. As a Premier Kohler showroom, they feature the most current & innovative products. Other resources include, but are not limited to Bain Ultra, Hansgrohe, Rohl, Moen, Delta, Brizo, Watermark, Fluid, Grohe and Maax Collection. In the center of the showroom are four

working jetted tubs surrounding a relaxing bubblewall feature. Kitchen & Baths by Briggs is a subsidiary of Briggs, Inc. of Omaha, who has been serving the Nebraska & Western Iowa territory for the last 105 years. They expanded into the Kansas City Metropolitan area in April 2011. Stop in any time and check their website at www.kbbriggs.com. “We all understand how overwhelming it can be to walk into a showroom with no idea on what you are looking for,” said Megan Vejraska. “Check out the website first or just come on in and our professional and knowledgeable consultants are ready to help turn your ideas into a beautiful reality.”

Congratulations to Travis Graham, Graham Construction, on being awarded the designation of NAHB Senior Life Director. Graham has been an active member of the HBA for more than twenty years over which time he has volunteered at every committee and board level including serving as Board President twice, the first time in 1999 and the second time in 2011. Formal recognition of Graham’s achievement will take place at the IBS Board of Directors Meeting in Orlando.

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New Members Coffee Members gathered for coffee in January at the HBA offices to meet the HBA staff, tour the office, and get acquainted with other members. They learned more about what is happening in the industry, ways to get involved, and got an overview of Builder Fusion, the online gateway to events and information at the HBA. Those in attendance included: Damon Comerio, Comerio Corporation Jeff Wallace, ER Marketing Building Business News

Douglas Bringman, Nitelites Doug Patterson, Property Law Firm Bill White, White and Associates Rebecca Waugh and Paula Stewart, Wood Haven INC Richard Holtcamp and JR Bretches, Bank of Blue Valley Jack Baker, United Agencies Phil Yancey, Weber Carpet Kevin Stucker, HBA President, Summit Custom Homes

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February 2012

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Build Green KC

Volume 18• NO.2.

Popularity of National Green Building Standard Continues to Grow

As the third anniversary of the National Green Building Standard nears, the number of green-certified homes and developments continues to achieve successive, new, growth milestones that reflect a continuing interest in sustainable design and construction and an increasing preference for certification to the standard. The vast majority of the certifications have been through the National Green Building Certification Program administered by the NAHB Research

Center. As of Jan. 8, 7,369 single-family homes and townhomes, apartment and condominium units, residential subdivisions and remodeling and renovation projects had been certified to the standard or its precursor, the Model Green Home Building Guidelines. “The increase, particularly in multifamily, has been just remarkable,” said Michelle Desiderio, director of the Research Center’s Green Building Programs. She said verifiers recently

submitted inspection reports for 24 new multifamily buildings in just one week and that interest is specifically growing in urban areas, including Chicago, New York and Washington, D.C., where certifications can encompass buildings of 200 to 300 units each. Single-family certifications continue to do well, especially east of the Mississippi River, where home builders in a growing number of market areas are certifying to the standard not just to stand apart from

the pack, but to stay competitive with other companies that see green certification as part of the cost of doing business. In all cases, “The standard is helping builders gain more traction in their market because it really sets these new homes apart from existing homes,” especially when the market is flooded with resales, Desiderio said. For additional information about green building programs and resources, visit www.nahbgreen.org.

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Volume 18 • NO. 2

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Industry News

IBS Builder Concept Home 2012: Three Homes r for Three Generations Side by Side by Side

s

The Builder Concept Home 2012 g at the upcoming t NAHB International s Builders’ Show in y Orlando showcases a new model for suburban , planning. Homes designed to suit baby boomer, Gen X, and millennial buyers are sited side by n side on a cul-de-sac. t The concept homes, which reflect the buying power and housing preferences of the three generations, are in a new section of the Eagle Creek golf course and are available for tours during IBS beginning February 8. Grouping the homes together in a more traditional neighborhood, rather than locating each in separate neighborhoods will enable Coral Springs, Fla.-based builder Centerline Homes to broaden its appeal and achieve sustained sales. “Neighborhoods used to be designed this way,

but suburban planning models got away from it,” said Peter Osterman, vice president of operations for Centerline, which closed on 399 homes in central and South Florida in 2010, a 29% increase over the previous year. “Today, people from all generations are coming back together, and this project enables that.” Centerline will use the three homes as models for a new, 1,900-unit section of Eagle Creek., an increasingly common work-out strategy for communities started during the housing boom but stalled in the recession. “The point is to address three strong target markets instead of relying on just one for sales. But that requires builders to design homes for each segment, not a one-house-fits-all approach,” said Boyce Thompson, editorial director of Builder magazine, which has been producing the Concept Home series since 1998.

February 2012.

Three Generations of Homes Features Young Millennial Couple • One-level, 2,163-square-foot home • Efficient yet open and flexible floor plan features a study, sports court, and an optional detached apartment for a sibling or visiting parents

Gen X Family • Two-story, 4,732-square-foot home designed for blended and multi-generations • Full apartment on the second floor with elevator access for an elderly parent • Hangout for two young children and a teenager from a previous marriage • Office the whole family can use

Active Baby Boomers • Well-appointed 2,866-square-foot home • First-level master suite and private study • Full apartment for a bounce-back child or caregiver • Guest suite for visiting friends • Large demo kitchen can be used for in-home cooking classes and parties • Covered lanai so kitchen classes and parties can move outside All homes feature generous outdoor living spaces, pools and spas, outdoor cooking and dining, and views of Eagle Creek golf course.

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Contact the Home Builders Association 816-942-8800 or 816-733-2217 • www.kchba.org Building Business News

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February 2012

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Volume 18• NO.2.

Past HBA Presidents Gather

Continued from page 1 labor strife of the late 1960’s,” said George Schluter. “With homebuilding in the doldrums during 2010 Janet led the association to new accomplishments including an outstanding Spring Homes Show and the successful hiring of our new executive officer.” Those in attandance included: Leo and Dottye Ashner, Mike and Kim Brown, Buzz and Jo Dulaney, Bob and Mary Frost, George and Mary Ellen Schluter, Jim Young, Charles and Jean Bleakley, Janet Pereira, Richard and Lois Mather, Hank and Joan Riffe, Tom and Yvonne Woods, Mark Hoffman, John Moffitt, Jr., Sara and Mike Corless.

Charles and Jean Bleakley (1966) with Leo and Dottye Ashner (1993)

Janet Pereira (2010) and George Schluter (2008)

John Moffitt, Jr (2003)

Mark Hoffman (2006), Bob Frost (2004), Richard Mather (1978)

Tom and Yvonne Woods (1991)

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Volume 18 • NO. 2

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February 2012.

Industry News Mortgage Giants to Alter Practices in Settlement loans. Roughly 1 million homeowners could see the size of their mortgages reduced. Five major banks -- Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial -- and U.S. state attorneys general could adopt the agreement within weeks, according to two officials briefed on the discussions. They

The nation’s five largest mortgage lenders have agreed to overhaul their industry after deceptive foreclosure practices unfairly evicted homeowners, government officials said Monday. A draft settlement between the banks and U.S. states has been sent to state officials for review. It would be the biggest settlement with a single industry since the 1998 multistate tobacco deal. Those who lost their homes to foreclosure are unlikely to get their homes

back or benefit much financially from the settlement, even though the banks may have to pay as much as $25 billion in total to settle with the government. About 750,000 Americans -- about half the households who might be eligible for assistance under the deal -would likely receive checks for about $1,800 each. The agreement also could reshape longstanding mortgage-lending guidelines and make it easier for those at risk of foreclosure to restructure their

spoke on condition of anonymity because they are not authorized to discuss the agreement publicly. The settlement would only apply to privately held mortgages issued from 2008 to 2011, not those held by government-controlled Fannie Mae or Freddie Mac. They own about half of all U.S. mortgages, roughly about 31 million U.S. home loans. (2012 USA Today)

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LISC Announces 2012 Neighborhood Grants Targeted Strategy Supports Jobs & Considered a Successful Model

LISC is pleased to announce the 2012 grants to Kansas City area organizations as a part of its successful strategic model to create jobs and improve conditions in targeted urban-core neighborhoods. LISC grants support neighborhood-based Community Organizers who help implement youth services, educational activities, block contact and minor home repair programs, in addition to annual neighborhood clean-ups. Six organizations received a total of $314,930 covering the costs associated with seven job positions that help implement projects and programs to foster safe, livable and healthy communities. “Because of these grants, vital programs and projects will continue or be launched, including health, safety and security efforts; economic development; family wealth building; and youth and educational activities,” said Julie Porter, Greater Kansas City LISC Executive Director. Since 2006, Greater Kansas City LISC has been at the forefront of the shift to comprehensively targeting resources in neighborhoods for the greatest impact. This effort continues in 2012 as six of the seven grants are funded through NeighborhoodsNOW, the flagship revitalization program of Greater Kansas City LISC. The 2012 grant recipients and amount funded are: • Downtown Shareholders, Inc.–$40,000 • Blue Hills Community Services–$40,000 • Front Porch Alliance–$40,000 • CHWC, Inc.–$40,000 • KC Healthy Kids–$40,000 • Don Bosco Centers, Inc.–$114,930 Building Business News

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February 2012

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Volume 18• NO.2.

HBA Members Happy Anniversary The following companies are celebrating anniversaries this month as HBA members. These companies’ continued membership shows their support for the local home building industry. To those HBA members who have not yet renewed, the HBA looks forward to hearing from them soon. 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. (If you know these members, please encourage them to renew and remember all the benefits they’ll miss by not renewing their membership)

1948 McCray Lumber and Millwork 1974 Graham Construction Company 1976 Grandview Furnace Company 1978 Barney Ashner Homes, Inc. 1983 Price Brothers Residential Inc Jim Haas Builders, Inc. 1984 Brown Midwest, LC 1986 Segebrecht Charles Construction 1987 Top Master 1988 Bickford & Company, Inc. Dixon Construction Co., Inc. Design Homes, Inc.

1989 Pfeifer King Building Corporation 1990 United Heating & Cooling 1997 Herrman Customized Construction, Inc. Kansas/Missouri Secured Title 2000 J Davis Drywall LLC 2001 Signature Quality Homes, LLC Royal Metal Industries, Inc. 2002 Gahagan & Eddy Building Co LLC Mark Hoelting Building LLC 2004 MonierLifetile 2006 Kirkwood Realty Co., LLC KC MASS Services

One Call Gets You a New,

2006 Breen Development Window World of KC Kreimendahl Painting 2008 The Hardwood Guy 2009 Rosehill Gardens, Inc Mission 159, LLC Time Warner Cable Kansas City Peak Auctioneering First National Bank 2010 Legacy Custom Homes LLC Associated Air Products Integrated Electronics, Inc. Quinn Real Estate Company 2011 Rare Construction, Inc Accent Doors of Kansas City

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Call K&E Today! 816-746-6100 www.keflatwork.com

www.kchba.org

BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY

February 2012 Volume 18 Issue 2 Copyright 2012 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 Graphics Karla Peterie, Creative Services Contributing Writer Steven Cowen

2012 Executive Committee Home Builders Association of Greater Kansas City President Kevin Stucker Vice President Fred Delibero Secretary/Treasurer Chris Ragland Associate Representative Kevin Kirtley Immediate Past President Travis Graham

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

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

Building Business NewsB


Volume 18 • NO. 2

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Welcome New Members Ruth Finet The Korner Shoppe 6450 Sprint Pkwy Suite E2 Overland Park, KS 66251 ruth@thekornershoppe.com Michael Harmon LP Building Products 9901 Perry Drive Overland Park, KS 66212 (913) 492-5527 mike.harmon@lpcorp.com James Otis, Jr. Otis Company 1464 Techny Road North Brooke, IL 60062 (847) 272-7100 jotisjr@otiscompany.com Chris Erlendson Midwest Standard Homes, LLC 28360 Holy Cross Road St. Mary’s, KS 66536 (913) 660-4654 chris@erlendson.net

Taking the guess work out of building an energy efficient home

Congratulations to our new members. Current members are urged to welcome them to the HBA and make them feel at home.

David Hawkins David Hawkins Construction PO Box 46914 Kansas City, MO 64188-6914 (816) 468-6141 hawkinsconst@gmail.com

Richard Pfaff Rockwood Builders Corp 12304 Bradshaw Overland Park, KS 66213 (913) 602-4819 rpfaff74@yahoo.com

Bill Hillix Hillix Construction LLC 315 E 125 Terrace Kansas City, MO 64145 (816) 914-5055 whillix@kc.rr.com

Kurt Pycior K2 Home Builders 338 SW Main Street Lee’s Summit, MO 64063 (816) 554-0375 kurt@pyciorco.com

Stan Klinksick SRK Construction LLC 2307 S. Outer Road Blue Springs, MO 64015 (816) 229-4242

February 2012.

Shawn Woods Ashlar Homes, LLC 790 SW US Highway 40 #315 Blue Springs, MO 64015 (816) 268-1188 shawn@ashlarhomeskc.com

Tell the story of your great homes

AB Lennox Lennox Enterprise LLC 9800 E 36th St Independence, MO 64052 (816) 728-8381 lennoxinc@yahoo.com

From 1932 till now, a lot of things have changed, but Henges is still here to help you.

n reach Find out how you ca y Star over 1,000,000 weekl ed iz readers with a custom ntial te profile story. Show po unity m buyers why your com ll home. is a great place to ca

We currently install traditional batt insulation, three types of sprayed in wall fiber, fiberglass & cellulose blow, open & closed cell foam, rigid foam board, fireplaces, & siding. With all these choices and challenges of code and Energy Star you can work with a Henges consultant to achieve your goals.

www.hengesinsulation.com • 913-764-4600

Building Business News

To advertise, call your account executive or Kate Mariani-Vacek at (816) 234-4097. www.kchba.org Page 11


February 2012

www.kchba.org

Let us orchestrate your dream.

HBA Staff

Office: 816-942-8800 Sara Corless Executive Vice President scorless@kchba.org 816-733-2216

For the perfect products for your kitchen or bath, stop by a Ferguson showroom. It’s where you’ll find the largest range of quality brands, a symphony of ideas, and trained consultants to help orchestrate your dream.

Steven Cowen Vice President of Governmental Affairs scowen@kchba.org 816-733-2237

Come see why Ferguson is recommended by professional contractors and designers everywhere.

APPLIANCES Lenexa: Topeka:

PLUMBING

Page 12

PASSIONATE PEOPLE

9301 Rosehille Road 2220 SE Lakewood Boulevard

©2011 Ferguson Enterprises, Inc. All Rights Reserved.

Volume 18• NO.2.

FIXTURES

LIGHTING

(913) 752-5660 Independence, MO: 13907 E 35th Street (816) 252-0060 (785) 354-4305 FERGUSON.COM

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 Lori Kodanaz Director of Consumer and Trade Show lori@kchba.org 816-733-2217 Andrew McKeegan Association Services Manager Andrew@kchba.org 816-733-2235 Natalie Tucker Events Support Natalie@kchba.org 816-733-2227

Register for events online

www.kchba.org www.kchba.org

Building Business NewsB


Volume 18 • NO. 2

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February 2012.

Industry News

2011 Top 124 Builders in the Kansas City Metropolitan Area Company Name

The following list is based on the HBA’s monthly Residential Building Permit Statistics report for 2011. Unit Count

James Engle Custom Homes 125 Summit Custom Homes, LLC 100 Maco Construction, Inc. 64 Prieb Homes, Inc. 53 Robertson Construction LLC 49 Rausch Coleman Homes of KC LLC 48 Sallee Homes, Inc. 43 Dirt Solutions 35 Rodrock Homes of Johnson Co LLC 35 Hearthside Homes of KC, Inc. 31 McBride & Son Homes, Inc. 22 PC Homes, LLC 22 Roeser Homes, LLC 22 Starr Homes LLC 22 Design Homes, Inc. 21 Don Julian Builders, Inc. 21 SAB Construction LLC 21 C & M Builders, Inc. 20 Hilmann Home Building Inc 20 Price Brothers Residential Inc 19 Tom French Construction, Inc. 19 McFarland Custom Builders 18 Richard Mather Builders, Inc. 18 Falcon Falls LLC 18 Gary Kerns Homebuilders, LLC 17 Rodrock Homes at Manchester Park 17 Homes by Chris LLC 16 Tabernacle Homes LLC 16 Bickimer Construction, Inc. 15 Chris George Homes, Inc. 15 Lambie Custom Homes, Inc. 15 New Mark Homes LLC 15 Reilly Homes Inc 15 Brookside Builders LLC 14 John Shilt Homes, Inc. 14 LDH Construction Inc 14 Reilly Homes Inc. 14 Integrity Homebuilders LLC 13 J.S. Robinson Construction, Inc. 13 James III Homes at Estates of Prairie Haven LLC 13 Parkview Homes LLC 13 Integrity Home Builders 11 Rodrock Homes, LLC 11 Higgins Building Company, Inc. 10 L G Homes Inc 10 Owens Built Properties Inc. 10 Ward Development & Investment 10 Prairie Homes Inc 10 Ernst Brothers Home Construction 9 Estes Construction Inc 9 L.C. Lester Construction, Inc. 9 Building Business News

Nottington Creek Builders Carson Custom Homes, Inc Casa Bella Construction, Inc. Distinctive Homes J & K Properties LBS Homes, LLC McBee Custom Homes, LLC Nick Zvacek Construction, LLC Beringer Homes, Inc. Eagle Ridge Homes LLC Heartland Ventures LLC Hilmann Homes, Inc. Klopfenstine Construction, Inc. Wood Brothers Construction Inc. Woodbridge Homes Inc AH2.0, LLC Allendale Builders, LLC Aspen Homebuilders LLC Covenant Homes Dahmer Construction, Inc. Design Homes of Jo Co, LLC Dusselier & Marks Homes, Inc. Estes Custom Homes Habitat for Humanity Kansas City Inc MVP, Inc. Pfeifer King Building Corporation Pointe Development LLC Provident Ventures Robert Garver Builder, Inc. Vasut Construction, Inc. A Place Called Home Const. Co., Inc. Bodine-Ashner Builders, Inc. Brittany Ridge Developers LLC Cambridge Homebuilders, LLC Hidden Ridge Building Corporation IDA Development LLC James III Homes, Inc. Jim Larson Homes LLC Joseph Lane Company, Inc. Kevin Burke Construction Inc MBW Construction Inc. Rowe, Dan Remodeling LLC Scherer Construction, Inc. T. E. Woods Construction, Inc. Truman Heritage Habitat for Humanity Wheeler Design, Inc. Willis Construction, Inc. Treehouse Homes Inc Arklyn Homes, Inc. Ashner Construction Company, Inc. Cecil & Ray Homes Inc Dave Richards Home Building, Inc. Ernst Brothers Properties LLC

9 8 8 8 8 8 8 7 7 7 7 7 7 7 6 6 6 6 6 6 6 6

Gabriel Homes Inc 4 Gale Homes, Inc. Highland Park Builders LLC K & P Homes, Inc. K. C. Builders & Design, Inc. Koehler Building Co., Inc. Life Design Homes LLC Lifestyle Homebuilders LLC Mack Colt Homes Inc McGraw Homes, Inc. Midwest Standard Homes

4 4 4 4 4 4 4 4 4 4

New Castle Homes LLC Pyramid Homes, LLC Quinlan Construction Raintree Builders Inc. Robertson Construction RW Investments LLC Scott Prier Homes, LLC Bamesberger Construction Foster Construction Huber Al Construction Inc

4 4 4 4 4 4 4 4 4 4

6 6 6 6 6 6 6 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 4 4 4 4 4

www.kchba.org Page 13


February 2012

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Volume 18• NO.2.

HBA 2012 SPONSORS Industry News A huge thank-you goes to the following members who have made their commitment to the HBA and are part of the 2012 Sponsorship Program. Without their support, many of the HBA programs would not be possible.

Page 14

Platinum

Bank of Blue Valley

Gold

Capitol Federal Factory Direct Ferguson Enterprises First Federal Savings K & E Flatwork Kansas City Star Kenny’s Tile Nebraska Furniture Mart Owen Lumber Shamrock Cabinet Weber Carpet

SILVER

Henges Insulation & Fireplace Phelps Engineering ProBuild United Heating & Cooling

bronze

Commerce Bank First American Title Hermes Landscaping Kansas City Title Kitchens & Baths by Briggs McCray Lumber and Millwork Pacific Mutual Door Pella Products Western Chandelier

Housing Finishes 2011 with 6 Percent Gain Over 2010 Multi-family housing units helped boost the overall residential permit statistics to higher territory in 2011 according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. The year ended on an up note with 2,901 compared to 2,724 in 2010, but still below the total in 2009 of 3,652. Overland Park led the metropolitan area with a total of 736 residential units. Of those 462 were multi-family and 274 were single family units. Kansas City had 423 single total units including 60 multifamily units. Olathe followed with 311 total units all from single family. More than half of all the permits pulled were from Johnson County. “Johnson County continues to lead the

metro area in a market that gradually is coming back,” said HBA Executive Vice President Sara Corless. “Builders have sold much of their excess inventory so buyers will see an array of new home choices as we enter the peak buying season in the spring.” The HBA notes that builders are expressing optimism as evidenced by a 16 percent increase over 2011 in entries to the Spring Parade of Homes event scheduled to take place, April 14-29, 2012. More than 280 homes will be open for the public to tour daily throughout the eight-county metro area. The attached list of the top 124 builders gives a snapshot of builders and their production in 2011.

Update on Builders, Remodelers Requirement to Notify Employees of Collective Bargaining Rights Beginning on April 30, home builders, remodelers and other businesses with more than $500,000 in annual gross business volume will be required to post an official notice advising employees of their collective bargaining rights under the National Labor Relations Act. The law applies to all companies - including those in right-to-work states or with no employees belonging to a union - that meet the gross business volume threshold. According to the National Labor Relations Board (NLRB), the notice must be 11 inches by 17 inches and displayed in a conspicuous location - such as a break room or other location for employee news - where other notifications of workplace www.kchba.org

rights and employer rules and policies are posted. Companies can download instructions and notification posters, available in more than 20 languages, from the NLRB website. Since 1935, private sector employees have had the right to form or support a union and to take collective action regarding their wages, hours and working conditions. Implementation of the final rule to post National Labor Relations Act rights clarifies what employers are required to inform their workers. Companies that do not prominently post the required signs as of April 30 can be found in violation of unfair labor practices law.

Building Business NewsB


Volume 18 • NO. 2

www.kchba.org

February 2012.

HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY

Residential Building Permit Statistics DECEMBER 2011   Archie Belton Cass County Cleveland Drexel Garden City Harrisonville Lake Winnebago Lee's Summit Peculiar Pleasant Hill Raymore Village of Loch Lloyd

 Clay County Excelsior Springs Gladstone Kansas City Kearney Lawson Liberty North Kansas City Pleasant Valley Smithville

 Blue Springs Buckner Grain Valley Grandview Greenwood Independence Jackson County Kansas City Lake Lotawana Lee's Summit Oak Grove Raytown Sugar Creek   Edgerton Kansas City Parkville Platte City Platte County Riverside Weatherby Lake Weston

 De Soto Edgerton Fairway Gardner Johnson County Leawood Lenexa Merriam Mission Hills Olathe Overland Park Prairie Village Shawnee Spring Hill

Building Business News

  

M-F  

M-F  

 

  

  

  

  

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             

             

             

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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 

             

          

          

          

          

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0 0 0 0 0 0 0 0 0 0 

0 0 0 60 0 0 0 0 0 0 

          

             

             

             

             

65 0 27 19 18 113 31 46 1 145 10 2 4 

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 

             

    Basehor  Lansing  Leav. County  Leavenworth  Tonganoxie    Bonner Springs Edwardsville KCK/Wyandotte Co

 Louisburg Miami County Osawatomie Paola Spring Hill



        

        

        

0 47 23 0 90 6 1 2 

0 0 0 0 0 0 0 0 

0 0 0 0 0 0 0 0 

        

              

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              

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17 0 2 43 16 28 85 4 3 311 274 6 58 22 

0 0 0 0 0 0 0 0 0 0 0 0 0 0 

0 0 0 30 0 0 0 0 0 0 462 0 0 0 

              

M-F  

 

  

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  

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









Comparison of Single Family Totals for Greater Kansas City 

             

        

M-F  

            

            

            

            

            

            

            

      



        

        

M-F 

      

Total 

      

    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.

www.kchba.org Page 15


February 2012

www.kchba.org

Volume 18• NO.2.

A Moment in Time

Spring Parade of Homes 1962-2012

As the Spring Parade of Homes celebrates its 50th anniversary, the HBA would like to share memorable stories. The following was submitted by David G. McIntyre.

I was recruited into the HBA by Larry Winn ll around 1957. I was a oneman company hardwood floor sander. Winn-Rau was building Nall Hills and we were in some kind of recession, but I didn›t realize it. I was out hustling work and called on Larry Winn. He had several houses that the floors hadn›t been finished in. Larry gave me 2 houses to finish and to get ready for the Spring selling season or maybe just to help me out. When finished I turned my bill into

Winn- Rau›s office and was told that I could pick up my check from Larry Winn a few days later. I was ushered into his office, served coffee and Larry handed me 3 checks, one at a time, each one with a little speech. The first check was in full for a one house. Larry complimented the work. The second check was for $75 made out jointly to the HBA and McIntyre Flooring. This speech took longer with Larry telling me how everyone in the construction trades should support the industry through the HBA and to join the HBA. All I had to do was endorse the check and fill out a little application which he would turn in for me. I don›t

know if they kept track of new HBA members at the time, but I›ll guess that Larry Winn ll set records for recruitment in that era. Check #3 was for $12. No speech. Shortly after that Winn-Rau started selling lots in Nall Hill to other builders. By 1962 McIntyre Flooring was doing the majority of the work in Nall Hills. I don›t know this but I›ll bet for a builder to buy a lot in Nall Hills you had to be an HBA member or join. Most have passed away over the years, but notably Bodine-Ashner still builds, and Leo is as active as ever. Lots of Fond Memories, David G. McIntyre

See the Homes April 14-29 Number of Entries 284 KC Metro Area Counties 7 Price Range $95,000 - $2,000,000 Maintenance Provided Homes 33 Furnished Homes 156

• Since 1976 providing Unsurpassed Service, Selection, & Professional Installation. • Value, Convenience and Largest In-Stock Flooring Stores in Area. • No Job is Too Small - From Remnants to Full Complimentary Design Service. • Carpet, Ceramic Tile, Hardwood, Laminate Floors, Vinyl, Area Rugs, Granite Countertops & Window Blinds - We've Got it All! Lenexa • Independence • Kansas City KS • KC North • Grandview

Page 16

www.joescarpet.biz www.kchba.org

Building Business NewsB


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