Building Business News Jan 2016 by Home Builders Association of Greater Kansas City

January 2016

Board of Directors Approves Missouri and Kansas Legislative Agendas IBS 2016 Schedule - page 3 Economic Forecast - page 6 Legislative Agendas - page 7

2015 Award Winners Announced, pages 4-5

With Kansas and Missouri state legislators returning to work this month, the KCHBA Government Affairs Committee and Board of Directors have approved the 2016 Legislative Agendas for Kansas and Missouri. The legislative agendas include long-standing policy issues that are important to HBA members and key to a strong housing industry. The legislative agendas also serve as the HBA’s guide for its advocacy efforts in Topeka and Jefferson City and are designed to adapt to any legislation that may emerge during the legislative sessions. The upcoming Kansas legislative session, which begins on January 11, will largely focus on state budget issues. The legislature faces a $354 million revenue shortfall according to November estimates, which means that all current tax exemptions and deductions might be in danger of elimination or sunset dates. However, as 2016 is an election

year for all 165 members of the Kansas legislature, drastic changes in tax policy are unlikely. The state budget will also be an important topic this year in Jefferson City, with the Missouri General Assembly entering session on January 6. Last year’s surplus will likely be spent on existing program growth, such as Medicaid’s mandatory spending requirement. Transportation will also take center stage, as legislators once again debate the best strategy for funding highway improvement. Workers’ compensation issues might arise, and will be closely monitored by KCHBA for any changes affecting the home building industry. The Government Affairs Committee,

which is charged with examining issues and legislation and recommending policy positions, reviewed the HBA’s legislative agendas in December and sent them to the Board of Directors for approval. The Committee is cochaired by Harold Phelps, Phelps Engineering, Inc., and David Elliot, Construction & Planning Services, Inc. Committee members represent a broad spectrum of the housing industry and serve as the guiding voice of the HBA in both state Capitols. HBA members are encouraged to attend the annual Kansas Legislative Day on Wednesday, January 27 in Topeka and Missouri Legislative Day on Tuesday, April 5 in Jefferson City. More information on these events can be found on the HBA’s website under Government Affairs.

www.kchba.org | Volume 22, No. 1 | January 2016

A Night of Celebration and Awards

January Calendar

The Grand Street Café was filled with conversation and fun as December’s Inaugural Dinner brought together HBA 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 which 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, the Builder Hall of Fame and Next Generation Builder.

January 13 Economic Forecast Breakfast January 14 Spring Parade Seminar Jan 19-21 International Builders’ Show January 26 Board of Directors Meeting January 27 Kansas State Legislative Day

Mark Mather, 2015 KCHBA President with Brenner Holland, 2016 President

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

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Mary Alice, Dobbe and Brent Dobberstine, Dobberstine Custom Homes

January 2016 | Volume 22, No. 1 | www.kchba.org

IBS 2016: Celebrate NAHB Chairman Tom Woods

Tom Woods Taking Office at IBS 2015 The Kansas City Home Builders Association will recognize Tom Woods as he closes out his year as chairman of the National Association of Home Builders at the 2016 International Builders’ Show. We are so proud of Tom and his tireless work for the industry. Tom has dedicated countless hours and travelled thousands of miles to represent the home building industry to the nation during 2015. And, his work is not finished – as the NAHB’s immediate past chairman Event Gold Key and Platinum Clubs BUILD-PAC Reception Opening Ceremonies with speaker Jay Leno

Tom will carry on the duties of that role in 2016.

Date/Time Monday, Jan. 18 7:00–10:00 pm Tuesday, Jan. 19

Venue Drai’s Beachclub at the Cromwell Westgate (LVH) Paradise Event Center

KCHBA Hospitality Suite

8:00 am Tuesday, Jan. 20

Official IBS House Party

4:00–6:00 pm Tuesday, Jan. 19

Brooklyn Bowl Las Vegas

NAHB Chairman’s Reception

6:30–8:30 pm Wednesday, Jan. 20

TBD

TBD Thursday, Jan. 21

To be determined

NAHB Board of Directors Meeting Spike Concert – Hall & Oates

ROCKTOPS

The KCHBA Hospitality Suite will be open on Tuesday, January 20 beginning at 4 p.m. The schedule below lists events of particular interest to Kansas City HBA members. For a complete schedule of IBS events, visit www.buildersshow. com. For questions or more information, please contact Dawn Allen at 816-7332239 or dawn@kchba.org.

8:00 am–2:00 pm Thursday, Jan. 21 5:00 – 7:30 p.m.

The Encore

Westgate (LVH) Paradise Event Center 3

www.kchba.org | Volume 22, No. 1 | January 2016

KCHBA Honored Four Special Members with Annual Awards

Step Up to Higher Profits.

The KCBHA’s Inaugural Celebration includes four special awards given annually to members who have made valuable contributions to the home building industry and to the association. The 2015 winners’ names were a closely guarded secret until their presentations—leading to some surprised honorees.

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tal in the launch of the Construction 101 class, which educates members about the ins and outs of home building. In addition, Roy contributed to the Love Shack and Scout Shack for the HBA Home Show at Bartle Hall for the last two years. Roy also is an active board member of Rebuilding Together, a non-profit organization based in Liberty, Missouri, that brings volunteers and communities together to improve the homes and lives of homeowners in need. Fred J Geier Associate of the Year Award The Associate of the Year has been a proud tradition for years and in 2010

(816) 245-4160 • www.FFBKC.com/builders

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Jenni Mann, Hunt Midwest and 2014 award winner, presents the 2015 Sales and Marketing Award to Roy Ragland, Homes by Chris

Affordable, Upfont Pricing High-Quality Flatwork Exceptional Customer Service Professionally Trained Staff Serving Kansas and Missouri

Bob Bollier Sales and Marketing Award For many years, the HBA has recognized the importance of sales and marketing and has paid tribute to the late Bob Bollier with an award presented in his honor. Roy Ragland, Homes by Chris, was selected as the 2015 winner of this award. Roy has been part of the real estate market in Kansas City since 1993 and worked as a new home sales agent in many subdivisions in the Liberty area. Roy was co-chair of the Sales and Marketing Council when it was reactivated at the HBA in 2013 and was instrumen-

Call Kevin for a FREE ESTIMATE or visit www.keflatwork.com 4

Misty Hanson, Stewart Title and 2013 award winner, presents the 2015 Associate of the Year Award to Kevin Kirtley, K&E Flatwork

a new tradition began by naming it the Fred J. Geier Associate of the Year. The 2015 Associate of the Year is Kevin Kirtley, the proud owner of K&E Flatwork and a valued and active member of HBA for a number of years. In 2012 Kevin was instruContinued on page 5

January 2016 | Volume 22, No. 1 | www.kchba.org

operations of Bickimer Construction. Tommy’s passion for the building business extends beyond operating his own business; he is a strong advocate for the home building industry in every city in which he builds. Bickimer Construction consistently participates with the Parade of Homes and Tommy is a newly elected member to the Board of Directors. Builder Hall of Fame Award

Attention: HBA Realtor Members

This year’s inductee to the Builder’s Hall of Fame is Dobbe Dobberstine, Dobberstine Custom Homes. Shawn Woods, Ashlar Homes and 2014 award winner, presents the 2015 Next Generation Builder Award to Tommy Bickimer, Bickimer Homes

mental in reorganizing and re-energizing HBA’s Associate Council. He currently serves on the Board of Directors and as the Associate Representative to the Executive Committee. Beginning in 2016, he will be serving as an Alternate National Associate Director for NAHB. Kevin is not only dedicated to exceeding expectations pertaining to flatwork, he is also invested in the future generation of workers in the construction industry. Next Generation Builder Award The Next Generation Builder Award recognizes the achievements of a young leader who exhibits these important characteristics: a quality builder, an involved and innovative volunteer, and a reliable spokesperson for the industry. The 2015 Next Generation Builder is Tommy Bickimer. Tommy is a second generation builder who attended Colorado State University where he received his Bachelor’s Degree in Construction Management. After graduating from CSU, he worked for Sundt Construction, an international general contractor. In 2005, he returned to Kansas to run the day to day

Company President E. L. “Dobbe” Dobberstine is a seasoned builder and an NAHB Certified Green Professional with a long list of happy home owners to his credit. Dobbe is extremely involved in his community, holding offices with The Northland Early Education Center, Liberty Area Chamber of Commerce, Rebuilding Together Clay County, and many other organizations. Dobbe has served several terms on the HBA Board of Directors and used his time to provide valuable service to the home building industry.

Chris Ragland, Homes by Chris and 2014 award winner, presents the 2015 Builder Hall of Fame Award to Dobbe Dobberstine, Dobberstine Custom Homes

The next tour is scheduled for the summer of 2017 and is poised to soar thanks to the launch under Dobbe’s leadership.

In presenting the award, Chris Ragland said, “those facts alone make Dobbe my idol. I have followed Dobbe since the 80’s always in awe of the beauty of his homes. So it’s no surprise that his was the first name to come to mind to ask to serve as the chairman of this new HBA event to promote custom homes. We needed a tried and true leader to guide this special project and he answered the call.”

The Sales & Marketing Council will launch a new recognition program for new home sales professionals in 2016. Watch your email in early January for a special survey. The survey will help us gather data for a regular feature in the Building Business News which will celebrate your success. Please be sure and answer the survey so you can be included.

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Dobbe’s steady hand and decisive demeanor lead the Artisan Tour steering committee and ten builders through this 18-month endeavor and the result was a home run in its first year. The Artisan Home Tour may well become an HBA signature event that brings together custom home builders and home buyers.

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www.kchba.org | Volume 22, No. 1 | January 2016

House Approves Energy Bill that Would Boost Housing Affordability The House recently approved NAHB-supported legislation that would reform the role of the Department of Energy (DOE) in the development of energy codes and encourage meaningful savings for residential construction that are achievable and cost-effective. Of note to the housing community, the North American Energy Security and Infrastructure Act of 2015 (H.R. 8) would promote energy efficiency in buildings while ensuring that home builders and home owners are not burdened by unreasonable regulations. Specifically, H.R. 8 would: • Improve affordability by requiring any DOE-supported code or code-change proposal to have a payback period of 10 years or less, meaning that these

higher costs are paid back through utility savings. • Increase transparency in the development of model building energy codes by ensuring that all DOE code-change proposals are made available to the public, including calculations on costs and savings. • Ensure product neutrality by prohibiting DOE from advocating on behalf of certain products or technologies. • Protect a state’s right to adopt any code, standard or version deemed appropriate. For more information, contact Billie Kaumaya at 800-368-5242 x8570. NAHBNow, 12/3/15

2016 Economic Forecast Breakfast Wednesday, January 13, 2016

Bank of Blue Valley has supported the Home Building Industry for over 23 years. We understand the value of COMMUNITY, PHILANTHROPY, and ENTREPRENEURSHIP.

Christopher Kuehl is the chief editor for the Business Intelligence Brief, a daily report distributed worldwide by business organizations. He serves as Chief Economist for the National Association for Credit Management and is the Economic Analyst for the Fabricators and Manufacturers Association. He makes close to a hundred presentations each year to business and industry associations in the US and overseas.

David Crowe is Chief Economist and Senior Vice President at the National Association of Home Builders (NAHB). Dr. Crowe is responsible for NAHB’s forecast of housing and economic trends, survey research and analysis of the home building industry and consumer preferences as well as microeconomic analysis of government policies that affect housing.

Registration and networking from 7:45—8:30 am Breakfast and program begins at 8:30 am $35 (members), $50 (non members)

913-338-1000 | www.bankbv.com

The Overland Park Convention Center 6000 College Blvd OPKS To register contact Katie: katie@kchba.org or call 816-942-8800 Registration deadline: January 8, 2016 Sponsored by Wells Fargo Home Mortgage, 2016 Education Sponsor

MEMBER FDIC 6

January 2016 | Volume 22, No. 1 | www.kchba.org

2016 Missouri Legislative Agenda

2016 Kansas Legislative Agenda

The HBA’s 2016 Missouri Legislative Agenda includes long-standing policy issues that are important to HBA members and key to a strong housing industry. The HBA’s Government Affairs Committee will continue to monitor legislation and recommend policy positions as necessary.

The HBA’s 2016 Kansas Legislative Agenda includes long-standing policy issues that are important to HBA members and key to a strong housing industry. The HBA’s Government Affairs Committee will continue to monitor legislation and recommend policy positions as necessary.

TOP PRIORITIES

Taxes: The HBA opposes any changes to state tax policy that adversely impacts economic growth and homeownership, including but not limited to, efforts to eliminate the state mortgage interest and property tax deductions. Workers Compensation Reform: The HBA supports the requirement that everyone in the construction industry carry workers’ compensation insurance. Fire Sprinklers in Residential Structures: Fire sprinklers in one and two family residences and townhomes should remain a consumer option. Currently local governments are prohibited from mandating residential fire sprinklers in their building code. The HBA supports making this prohibition permanent by eliminating the December 31, 2024 sunset on the prohibition. IMPORTANT PRIORITES Licensing: The HBA opposes state license and/or registration legislation for home builders. The HBA believes licensure is best addressed at the local level. Building Codes: The HBA opposes any legislation creating a uniform statewide building code, energy code, or comprehensive energy plan.

and certification programs that include standards such as the Home Innovation Research Labs’ NGBS Green Certification program and the ICC 700 National Green Building Standard.

Taxes: The HBA opposes any changes to state tax policy that adversely impacts economic growth and homeownership, including but not limited to, efforts to eliminate the mortgage interest and property tax deductions. Additionally, the HBA opposes any change to the current sales tax exemption on labor services such as framing, siding, roofing, digging, excavating, as well as professional and design services.

Artificial Growth Management: The HBA opposes limits on new development, including impact fees, urban growth boundaries and excise taxes. Education Funding: While recognizing the connection between economic development and quality education, the HBA supports funding based on actual costs, administrative consolidation and further expansion of local funding options.

IMPORTANT PRIORITES Workers’ Compensation Insurance: The HBA supports the requirement that everyone in the residential construction industry carry workers’ compensation insurance.

Transportation: The HBA generally supports investments in transportation infrastructure.

Fire Sprinklers in Residential Structures: Fire sprinklers in one and two family residences and townhomes should remain a consumer option. Currently no political jurisdiction is allowed to adopt mandatory fire sprinklers in their residential building code.

Federal Regulation: The HBA urges local and state governments to join the HBA in supporting critical federal legislation, such as housing finance reform, and opposing federal regulation that adversely impacts the home building industry and hampers economic growth, such as the Waters of the U.S. rule, the Endangered Species Act, and other burdensome U.S. Environmental Protection Agency and Army Corps of Engineers regulations.

Licensing: The HBA opposes license and/or registration legislation on a statewide basis. HBA believes licensure is best addressed at the local level. Building Codes: The HBA opposes any legislation creating a uniform statewide building code. Sustainable Building: The HBA supports voluntary initiatives to promote the use of sustainable building technology in residential construction. The HBA supports flexibility in guidelines and certification programs that include standards, such as the Home Innovation

Sustainable Building: The HBA supports voluntary initiatives to promote the use of sustainable building technology in residential construction. HBA supports flexibility in guidelines 7

Research Labs’ NGBS Green Certification program and the ICC 700 National Green Building Standard. Growth Management: The HBA opposes limits on new development, including impact fees, urban growth boundaries and excise taxes. Unemployment Compensation Fund: The HBA supports the refunding of the Unemployment Compensation Trust Fund by means that are fair, reasonable and balanced. Education Funding: While recognizing the connection between economic development and quality education, the HBA supports funding based on actual costs, administrative consolidation and further expansion of local funding options. Repeal Platting and Taxation Requirements: The HBA supports repealing the provisions of KSA 19-1207 implemented with Senate Bill 193(2011). The HBA opposes paying a tax before it is levied and the burdensome efforts associated with estimating, collecting and refunding projected tax bill Federal Regulation: The HBA urges local and state governments to join the HBA in supporting critical federal legislation, such as housing finance reform, and opposing federal regulation that adversely impacts the home building industry and hampers economic growth, such as the Waters of the U.S. rule, the Endangered Species Act, and other burdensome U.S. Environmental Protection Agency and Army Corps of Engineers regulations.

www.kchba.org | Volume 22, No. 1 | January 2016

Seven Steps to Minimize Warranty Woes Warranty services are a great way to give customers peace of mind and protect them against poor-quality construction. But what are builders to do to protect themselves from excessive liability? Even the most skilled and wellintentioned builders can see things turn ugly with a home owner if something goes wrong on a new project or repair request. But builders can take certain steps to help them avoid these types of sticky situations. Put it in writing. Every state has statutes and code requirements regarding warranties. However, these requirements are often open to the courts’ interpretation. To minimize variation, create your own written warranty with specific language and guidelines. A clearly defined warranty allows you to control warranty costs, limit liability exposure and outline the process for dealing with warranty service issues Have an attorney review your warranty language. Your warranty document is a contractual agreement between you and the home owner. Even if the document was provided by a third-party warranty company and has been time- and courttested, it’s still a good idea to have your own attorney look it over. Establish a formal process for service request submissions. Accepting verbal-only requests for warranty services can lead to miscommunication and tracking issues. But by requiring the home owner to submit a simple, service request form – whether it be a hard copy, online form or even through email – you can avoid such problems. The record should include general details of the request, as well as

the date and time it was received. After the request is received, generate a work order to be delivered to the appropriate internal warranty tech or subcontractor, and follow up with the home owner as soon as possible regarding the request.

examine the problem and talk to your customer. Taking the time now to define liability limits and establish warranty processes will save you and your business significant time and valuable resources

Obtain the home owner’s signature once the work is completed. The technician should always obtain a signature certifying that the job is done and that they are satisfied. If the customer is not satisfied with the work, that should be documented as well, along with explicit details for follow-up review. Resolve disputes through a third party. You can’t please everyone. And the last thing you want to do is engage in a lengthy and expensive lawsuit. Establish a process for settling disputes that all parties understand. The process should involve an impartial third party to resolve the dispute through mediation or arbitration (in states that allow such dispute-resolution procedures). Many third-party warranty companies offer mediation and binding arbitration services prior to litigation. Know your state laws. Warranty terms may vary by state. In Florida, for example, a one-year warranty is defined as 13 months, which gives the home owner a one-month grace period to make a claim on a warranty issue that occurs on the 365th day of ownership. Rely on the experts. Your customers may appreciate you, but they also know you have a vested interest. To remain impartial and above the fray, refer their questions on material or system performance to the Residential Construction Performance Guidelines, or have a manufacturer’s representative 8

in the future. Go to nahb.org for more information on how to safeguard yourself and properly address various liability and other legal issues. NAHBNow, 12/10/15

January 2016 | Volume 22, No. 1 | www.kchba.org

Elliot Eisenberg Returns to KC

Elliot Eisenberg, Ph.D. is a nationally acclaimed economist and public speaker specializing in making the arcana and minutia of economics fun, relevant and educational.

LOVE WHAT YOU BUILD.

Mark your calendars now to be at the HBA on February 10 (9 am) for the Sales & Marketing Council’s second in the 2016 Housing Topics speaker series. One of the KCHBA’s favorite economists, Elliot Eisenberg, will share his outlook for the national and regional economy as local companies plan for spring and summer building. Call 816942-8800 to register for this event while seats are still available.

WINDOWS & DOORS DECKING INSTALLED SERVICES ENGINEERED WOOD TRUSSES LUMBER MOULDING SIDING & TRIM

Affiliate Membership Offers Benefits

PROBUILD DOOR & MILLWORK 1227 E MARTHA TRUMAN RD E 119TH STREET, SUITE 400 GRANDVIEW, MO 64030 816.765.4080

Late in 2014, the KCHBA board of directors approved offering affiliate membership for only $25 per year to employees of member companies. Nearly 200 people have taken advantage of this opportunity to increase their support of the industry. Affiliate membership includes the following benefits: • National Association of Home Builders (NAHB) membership • Access to NAHB discounts on a variety of items (see nahb.org/ma) for Member Advantage • Individual listing in the KCHBA’s printed membership directory and in the online directory at www.kchba.org • Personal invitations to awards celebrations, inaugural and other events • Electronic copy of the Building Business News • Easier registration process for NAHB events and the NAHB website member features

• Eligibility to serve on HBA committees Although affiliate membership is available at any time, those who want to be listed in the 2016 membership directory must activate that status by January 15, 2016. Questions about becoming an affiliate member? Contact Dawn Allen at dawn@kchba.org.

Our experienced staff can help with all the details to make your house a home— from the ground up. Upgraded decking, beautiful doors and energy-efficient windows are only the beginning of a huge selection of quality products available at ProBuild. Please call or come in today with all of your building needs.

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www.kchba.org | Volume 22, No. 1 | January 2016

Let’s Think Spring (Parade of Homes)

Casa Bella’s Spring 2015 parade entry at Riss Lake Streets in area neighborhoods will fill with traffic during the 54th annual Spring Parade of Homes, April 23 through May 8. Builders, though, are busy now preparing for those home buyers. The early deadline for parade entries is January 15; the regular deadline is January 29 and late entries must be registered by February 5. Contact Gina (gina@kchba.org) with any questions or for assistance in entering your homes into the parade.

Stewart Specialty Insurance Services is the proud new insurance and risk management associate for the Home Builders Association of Greater Kansas City.

org) for reservations and information. The KCHBA is delighted to announce that Stewart Title will once again sponsor the 2016 parades, making this the 5th consecutive year of Stewart Title’s generous support for the Parade of Homes.

Mark Your 2016 Calendar for “Learn from the Experts: Have the Best Spring Parade Ever”

Contact us today and learn more about how you can get increased coverage at lowered premium levels with our Builder Protection Plus™ program. (866) 845-4676 specialtyinsurance@stewart.com stewartspecialtyinsurance.com

Plan now to attend the KCHBA seminar on January 14 with Chris Ragland, Austin Roeser, Kerwin Holloway, Sally Moore, Jennifer Bertrand and Terri Stolz speaking on strategies for the Parade contest, designing, staging, and marketing a home. Lunch will begin at 11:30 and the panel discussion will run from noon till 3 pm. Don’t miss this chance to hear from experienced builders, realtors and interior designers. Cost: $25; contact Gina (gina@kchba.

Trustees of the HBA PAC met recently to review issues and candidates as they prepare for the 2016 election season.

January 2016 | Volume 22, No. 1 | www.kchba.org

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

Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219 Marcia Jurgens Director of Administration marcia@kchba.org, 816-733-2215

Kelcee Schlotzhauer Events and Administration Assistant kelcee@kchba.org, 816-942-8800

Dawn Allen Director of Member Services and Events dawn@kchba.org, 816-942-8800 Tricia French Special Projects Assistant tricia@kchba.org, 816-733-2241 Katie Walkley Government Affairs Manager katie@kchba.org, 816-733-2241

Jeff Gifford, Rodrock Development; Katie Walkey, KCHBA Staff; Ray Merrick, Kansas Speaker of the House and Jim Lambie, Lambie Custom Homes met recently at Lambie’s Artisan tour entry in Leawood to discuss the upcoming legislative session and home builders’ issues while touring the beautiful home.

Has Your Company Joined the 2016 Sponsor List?

Thanks to These HBA 2015 Sponsors PLATINUM SPONSORS

KANSAS CITY STAR SPACES MAGAZINE KENNY’S TILE BOVARD INSURANCE GROUP CARPENTERS DISTRICT COUNCIL

As the KCBHA wraps up 2016 sponsorships, we offer our appreciation to the Affinity Sponsor, Stewart Specialty Insurance, and the 2015 platinum, gold and silver sponsors. The following companies have made 2016 sponsor commitments as of press time: PLATINUM

GOLD

St. Louis-Kansas City Carpenters Regional Council

Rew Materials

Kansas City Star Media Company

Sun Lumber

Wells Fargo Home Mortgage GOLD Bank of Blue Valley Bovard Insurance Group Capitol Federal Fasone & Partners Ferguson Enterprises First Federal Bank Kansas Gas Service Kenny’s Tile Laclede Gas McCray Lumber & Millwork Northcraft Flooring & Granite Owen Lumber Co. ProBuild

GOLD SPONSORS

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

Stewart Title United Heating, Cooling & Plumbing SILVER A+ Insulation Pacific Mutual Door & Window Shamrock Cabinet BRONZE Building Solutions Commerce Bank Complete Home Concepts CrossFirst Bank First American Title Hermes Landscaping Kansas City Title Locks & Pulls Pella Products of Kansas City ProSource

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

SILVER SPONSORS

Henges Insulation and Fireplace Kansas Gas Service

Stewart Title

BRONZE SPONSORS 84 Lumber Atronic Alarms Building Solutions Commerce Bank Complete Home Concepts CrossFirst Bank

If your company name is missing from this list, it can still be added – contact Dawn (dawn@kchba.org) to join this special group. 11

First American Title Hermes Landscaping Kansas City Title Laclede Gas Locks & Pulls North American Savings Bank

Pacific Mutual Door Pella Products of Kansas City ProSource Secured Title of Kansas City

www.kchba.org | Volume 22, No. 1 | January 2016

New Members Higgins Stone Company Tricia Higgins 407 Miller Dr. Wamego, KS 66447 (785) 456-9880 www.higginsstone.com Kansas City Remodel & Handyman Allen, LLC Allen Deuchle 12600 Santa Fe Trail Drive Lenexa, KS 66215 (913) 706-6025 www.kansascityremodel.net Patriot Homes Inc. Brian Tebbenkamp P.O. Box 1305 Liberty, MO 64069 (816) 429-8144 www.patriothomeskc.com Prime Development & Land/Clay Blair Services Frank Trim Dean size: 4.75 xW 4.75 14819 95th St Lenexa, KS 66215 Print 831-3388 ad (913) Uncoated www.primekc.com

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

Contact your Wells Fargo Home Mortgage branch today. Northland Office: 816-505-4110 Lee’s Summit Office: 816-329-2109 Overland Park Office: 913-319-7970 KC Bank Office: 913-234-7703

Raynor Garage Door Co., Inc. of KC Mike Guthrie 8235 McCoy Shawnee, KS 66227 (913) 422-0441 www.raynorkc.com

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

Walnut Trails Jeff Reader 1001 Chestnut Street, Ste 101 Philadelphia, PA 19107 (407) 856-4899 www.americanlandfund.com/www. readerpartners.com

Renovation Office: 913-234-2925

Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2014 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS1055681 Expires 5/2015 12

Affiliates First Federal Bank, F.S.B. Bob Knuston PO Box 419194 Kansas City, MO 64141-6194 (816) 241-7800 www.ffbkc.com Higgins Stone Company Mike Higgins Scott Wichman 407 Miller Dr. Wamego, KS 66447 (785) 456-9880 www.higginsstone.com Kansas City Remodel & Handyman Allen, LLC Brad Drotts Maria Knox 12600 Santa Fe Trail Drive Lenexa, KS 66215 (913) 706-6025 www.kansascityremodel.net Prime Development & Land/Clay Blair Services MaraDona Wood 14819 W 95th St Lenexa, KS 66215 (913) 831-3388 www.primekc.com Prime Lending Dale Falck Lauren North 7101 College Blvd, #520 Overland Park, KS 66210 (816) 256-5720 www.primelending.com RubinBrown LLP Traci Benhardt 10975 Grandview Dr, Ste 600 Overland Park, KS 66210 (913) 491-4144 www.rubinbrown.com

January 2016 | Volume 22, No. 1 | www.kchba.org

Member Anniversaries 1948 Overhead Door Company of K.C. 1967 Moffitt Built 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, LLC 1991 Dahmer Construction, Inc. 1996 Morrill & Janes Bank 1997 Owen Lumber Company 2002 Teague Lumber Company 2004 Steve Scherer Construction Company 2006 Principal Builders, LLC Quigley Custom Homes, LLC 2007 Blackburn’s All Star Roofing, Inc. K Hill Builders SCI 2008 A Place Called Home Const. Co., Inc. Estes Custom Homes, LLC 2009 Performance Plus Homes Singleton Construction LLC 2011 Hilmann Home Building Inc. K. C. Builders & Design, Inc. Price Residential Group LLC ProSource of Kansas City

BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY January 2016 • Volume 22 • Issue 1

St. Louis - Kansas City Carpenters’ Regional Council 2012 Ashlar Homes, LLC Covenant Homes, LLC Grisamore Real Estate Group Klopfenstine Construction, Inc. LP Building Products 2013 Calyn Homes LLC Cardinal Crest Homes Digital Lagoon, Inc. Foushee Homes, Inc. McFarland Custom Builders Refined Interior Staging Solutions Wolf Creek Homes LLC Wyss Construction, LLC 2014 Armstrong-Citywide Inc Building Solutions Darol Rodrock Homes Evan-Talan Homes, Inc Gabriel Homes Inc. Knoll Creek Homes, LLC Monumental Lawn & Outdoor 2015 A Total Door, Inc Bennett Home Improvement & Building, Inc. Boise Cascade BMD Clean Efficient Energy Company, LLC Corporate Housing - Execustay Dan Smith Home Building Company, Inc. Day3, LLC Dwight Friedley Building Co, LLC Edward Wayne Inc Encore Building Company Groves Custom Homes, LLC L.G. Homes New American Funding Nick Zvacek Construction, LLC Taylor Sterling Construction ZG Realty, LLC

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

2016 Executive Committee Home Builders Association of Greater Kansas City

President Brenner Holland Vice President Harold Phelps Secretary/Treasurer Gary Kerns Immediate Past President Mark Mather Associate Representative Kevin Kirtley Past Presidents Representative Bob Frost To subscribe to Building Business News call (816) 733-2217 To advertise in Building Business News call (816) 733-2215 For change of address requests please fax changes to (816) 942-8367 or call (816) 942-8800 For more information, visit the HBA online at www.kchba.org

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January 2016 | Volume 22, No. 1 | www.kchba.org

Kansas City Area Homebuilders Post Best November in Eight Years Year-to-date, overall single-family home permits are up 8 percent and are on track to reach 4,500 for the year, hitting an eightyear high. “The November housing permit report for Kansas City offers fresh evidence that the housing recovery is in full swing. The HBA expects homebuilders in the region will continue to build inventory throughout the winter months, weather permitting,” said Sara Corless, HBA executive vice president. Nationally, housing starts rose 10.5 percent for the best reading since January 2008. U.S. multifamily production rose 16.4 percent to 405,000 units. “The November gains in both single- and multifamily starts show that the overall market continues to move forward,” said NAHB Chairman Tom Woods, owner of Woods Custom Homes in Blue Springs, Mo. “As builders anticipate more consumer demand for housing, they should continue to add inventory.” Johnson County led the region with 123 single-family housing permits issued in November, followed by Jackson County with 72 permits issued and Clay County with 51 permits. NAHB Chief Economist David Crowe said the housing recovery should continue at a modest pace into 2016. “Single-family production this month has reached levels last seen before the Great Recession, an indicator that we are making gradual headway back to a normal housing market,” said NAHB Chief Economist David Crowe. “As we close out the year, we can see that the housing sector has made headway in 2015, and we expect the recovery to continue at a modest pace.”

November 2015

Residential Building Permit Statistics

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

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

Single Family Units^

M-F Units Sale%

M-F Units Rent

Total Units

S-F Units YTD

M-F Sale YTD

0 2 4 0 0 0 0 1 1 0 0 20 1 29

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

0 2 4 0 0 0 0 1 1 0 0 20 1 29

2 13 29 1 0 0 10 4 32 26 40 124 9 290

0 0 0 31 5 0 1 0 0 14 51

0 0 0 0 0 0 0 0 0 0 0

0 0 0 188 0 0 0 0 0 0 188

0 0 0 219 5 0 1 0 0 14 239

9 0 8 0 10 6 6 3 0 27 3 0 0 72

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

0 0 0 0 0 0 0 5 0 50 0 0 0 55

0 21 4 0 10 12 6 0 53

0 0 0 0 0 0 0 0 0

2 0 0 10 4 4 24 0 0 24 37 2 11 5 0 123

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

November 2015 M-F Rent YTD

Total Units YTD

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

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

2 13 29 1 0 0 10 4 32 26 40 130 9 296

39 0 25 543 63 0 22 5 0 71 768

0 0 0 0 0 0 0 0 0 0 0

0 0 0 820 0 0 0 0 0 0 820

39 0 25 1363 63 0 22 5 0 71 1588

9 0 8 0 10 6 6 8 0 77 3 0 0 127

171 0 101 5 35 82 63 88 23 274 32 0 0 874

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

0 0 0 0 0 0 0 887 0 203 0 0 0 1090

171 0 101 5 35 82 63 975 23 477 32 0 0 1964

0 0 0 0 0 0 0 0 0

0 21 4 0 10 12 6 0 53

0 223 67 2 112 21 19 0 444

0 0 0 0 0 0 0 0 0

0 5 0 0 0 0 0 0 5

0 228 67 2 112 21 19 0 449

0 0 0 0 0 0 172 0 0 0 0 0 0 0 0 172

2 0 0 10 4 4 196 0 0 24 37 2 11 5 0 295

11 0 3 66 33 55 219 9 9 467 360 24 171 56 0 1483

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

0 0 0 72 0 0 316 0 0 159 885 0 0 0 0 1432

11 0 3 138 33 55 535 9 9 626 1245 24 171 56 0 2915

Single Family Units^ LEAVENWORTH COUNTY Basehor 7 Lansing 0 Leav. County 5 Leavenworth 1 Tonganoxie 0 13

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

7 0 5 1 0 13

81 13 79 10 15 198

0 0 0 0 0 0

81 13 79 10 15 198

0 0 0 0

12 0 5 17

20 1 134 155

0 0 0 0

20 1 134 155

0 0 0 1 1 2

0 0 0 0 0 0

0 0 0 1 1 2

7 30 1 4 14 56

0 0 0 0 0 0

32 0 0 0 0 32

39 30 1 4 14 88

360

415

775

4268

3385

7653

WYANDOTTE COUNTY Bonner Springs 12 Edwardsville 0 KCK/Wyandotte Co 5 17 MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill

Totals

Comparison of Single Family Building Units for Greater Kansas City

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

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

2008

2009

2010

2011

2012

2013

2014

2015

Annual Total

3,232

2,155

2,471

2,301

3,299

4,090

4,271

4,268

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

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

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

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

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

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

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

240 260 393 437 395 438 399 425 462 459 360

All numbers shown in the box above are ACTUAL numbers.

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

S-F Units 3117 1973 2262 2094 3020 3802 3943 4268

M-F Units

1830 692 253 600 1749 2768 3627 3385

Total Units

4947 2665 2515 2694 4769 6570 7570 7653

^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units and are divided by sale/rent. # Not available at time of report Permit information reflects the most recent data at time of publication. In order to ensure accurate recording of residential building permit statistics, the HBA may revise monthly and year-to-date figures when updated data is made available. Copyright 2015 Home Builders Assoc of Greater Kansas City. All rights reserved. Rev. 12/17/15