Building Business News July 2014 by Home Builders Association of Greater Kansas City

July 2014

New Opportunity for Fall 2014 New Voting Procedures for Code Changes Page 2 BUILD-PAC Celebration Page 7 Member Q&A Page 11 Home Construction 101 Page 16

A warm morning start for the HBA Annual Golf Tournament. See page 10 for winners and photos.

The Home Builders Association of Greater Kansas City will partner with the Heart of America Chapter of the International Codes Council and Johnson County Contractor Licensing to present a Fall Industry Trade Show at the Contractor Licensing Education Conference, October 21 through 23. This event, held at the Overland Park Convention Center, draws over 1000 individuals to the conference each day. These attendees are highly placed decision makers representing construction contractors and subcontractors throughout the Kansas City metropolitan area. Trade show booths offer vendors the opportunity to network with building professionals during break times between classes and during the lunch break. This event is well known for the excellent lunches provided to participants; therefore the contractors remain in the convention center throughout the day and have ample time to visit the trade show. The HBA feels that this business-to-business trade show will provide a unique opportunity for associates to exhibit their products to virtually every Class A, B and C prime contractor, mechanical, plumbing and electrical contractors along with architects and engineers. Plan now to place your business, products, or services in front of the most effectively targeted audience of construction and building purchasing professionals available in the Kansas City metropolitan area. Each day you will have access to a thousand or more different potential customers. If you want to reach the construction industry, you need to be at the 2014 Fall Industry Trade Show. For information or to reserve your booth space, contact Phil Yancey (phil@ kchba.org) at the HBA.

The Fall Industry Trade Show will offer business-to-business opportunities to vendors during the Johnson County Contractors Licensing Conference.

KCHBA Members Play Active Role at NAHB Spring Board Several KCHBA members played an active role at the National Association of Home Builder’s (NAHB) Spring Board meeting in Washington, D.C. in early June. NAHB senior officers, including First Vice Chairman Tom Woods, Woods Custom Homes, met with the President’s Council of Economic Advisers on mortgage finance reform. NAHB is strongly opposed to a bill in the House of Representatives that would affect every home builder in the country and “kiss the 30-year mortgage goodbye” according to Kevin Kelly, NAHB Chairman. The senior officers also met with Senate Majority Leader Harry Reid to urge him to hold a vote on a bipartisan bill in the Senate that would provide the much needed reform for housing.

George Schluter, GWS, Inc., chaired a meeting of over 50 home builders and executive officers from across the U.S. The committee on building codes discussed a wide range of topics, such as proposed changes to the thickness of roofing materials to changes on how building codes are adopted that would have a serious impact on the residential construction industry. Mark Hoffman, Hoffman Construction, Inc. and NAHB Vice Chairman of the Construction Liability, Risk Management and Building Materials Committee, also led discussions and represented builders at NAHB’s Spring Board meeting.

www.kchba.org | Volume 20, No. 7 | July 2014

July Calendar International Code Council Voting Procedures Need Your Involvement

July 10 Associates Council Meeting July 10 Parade Committee Meeting

As George Schluter reported at the Kansas City Home Builders Association Board of Directors meeting in June, changes in the voting procedure for the International Code Council (ICC) provide an opportunity for HBA members to increase their involvement with local building officials. Schluter pointed out that this is the time to get acquainted with the officials in the cities where members do business and encourage them to participate in this new ICC voting process. Because voting rights are based on the population of the city represented, several small localities can work together and have as much influence as a large city. The information below is from the National Association of Home Builders and explains their approach to the new voting structure.

July 11 Early Deadline for Fall Parade Entries July 15 Board of Directors Meeting July 18 Regular Deadline for Fall Parade Entries July 25 Late Deadline for Fall Parade Entries For more information or to register for any event, go to www.kchba.org or call 816-942-8800

In November 2013, the International Code Council (ICC) approved a remote voting program to allow codes officials to vote on proposed code changes from their own office instead of having to attend the national code development hearings in person. This program, called cdpACCESS, will have a dramatic impact on the code development process. Now, more than ever, NAHB needs to work hand in hand with all members to ensure that future changes to the model codes are necessary, cost effective and affordable. Go to nahb.org/codedevelopment to find the links to the materials referenced below.

Steps to Better Building Codes Building Relationships with your Code Officials, City Managers and Elected Officials – This guide for builders explains exactly what to do to ensure that NAHB is successful in sharing our message to all potential voters. Urge Your Code Officials to Participate in the ICC Code Development Process using cdpACCESS – Need to know more about how cdpACCESS will change NAHB advocacy efforts? This provides ideas and suggestions on how to reach out to local Code Officials and explains the various resources that NAHB provides. Seek Opportunities to Discuss Building Technologies and Code Issues – This 2

link is an inside look at the online cdpACCESS platform, which allows participants to draft and share code changes and eventually will be the website for code officials across the country to log in and vote after the public comment hearings. Champion NAHB Positions on Proposed Code Changes – The NAHB reviews proposed code changes and adopts a position on major proposals before and after the initial hearings. The positions will be shared with local HBA organizations. As the public hearings approach, NAHB will post voting guides and other useful resources to share with your Code Officials.

Action Steps Contact your state NAHB or ICC Liaison to find out more about cdpACCESS. The NAHB staff contact for Kansas and Missouri is Steve Orlowski. You may reach him at sorlowski@nahb.org or 800368-5242, extension 8303. Join your local ICC Chapter. Local chapters are: Kansas City Metro Association of Permit Technicians – www.kcmapt.org. Membership is open to anyone who shares in the mission of providing support for permit technicians in the metro area. You need not be a certified permit technician to be a member. Dues are $40 per year for professional/associate members. Heart of America Chapter, ICC – www.heart-o-america.org Metropolitan Kansas City Chapter of the International Code Council – www. metrokcicc.org: Membership is open to any person within Missouri or Kansas having an interest in furthering the purposes and objectives of the Chapter and the International Code Council. Dues are $20.00 per year. With more than seventy governmental entities in the eight county Kansas City area, there are many building officials who can be involved in the ICC voting process. Now is the time for Kansas City HBA members to get acquainted with their local officials and work together for code changes that are necessary, cost effective and affordable.

July 2014 | Volume 20, No. 7 | www.kchba.org

NAHB Urges Members to Call their Senators

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The National Association of Home Builders encourages HBA members to contact their U.S. Senators to urge them to support Senate Bill 1217, the Housing Finance Reform and Taxpayer Protection Act of 2014. Congress will be in recess during early July—now is the time to reach out to your senator while he is in his local office. The legislation is S. 1217, the Housing Finance Reform and Taxpayer Protection Act of 2014, and was approved by the Senate Banking Committee with bipartisan support in May. S. 1217 took months to negotiate and represents the consensus middle ground for housing finance reform. The bill, which recently passed the Senate Banking Committee with bipartisan support, would fix the nation’s flawed housing finance system and breathe new life into the housing sector by providing a consistent and affordable supply of mortgage credit for single-family and multifamily housing. Increased support for the bill will put pressure on the Majority Leader to hold a vote on the bill. After six years of government conservatorship our nation’s housing credit system remains in a constant state of uncertainty and confusion. Home builders, lenders and other market participants cannot adequately plan for the future and home buyers are either denied credit or paralyzed by the mixed messaging. Absent reform, all critical policy decisions on the operations of Fannie Mae and Freddie Mac will continue to be left to one unelected regulator, bipartisan compromise that would fund nearly $5 billion in annual affordable housing programs would be put on the back burner, and taxpayers would be ex-

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posed to yet another government bailout. To contact your U.S. Senators, visit the KCHBA’s Legislative Action Center at www.kchba.org/government-affairs/ legislative-action-center/ and click on the “Find your Elected Official” button. Specific points for discussion are available at the HBA office—contact Beatriz Ibarra (bibarra@kchba.org) for this helpful list of talking points.

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NAHBContracts.com will launch in September 2014! This website will give you the ability to manage all of your construction contracts online and offline. Features of the annual subscription service will include the creation of custom templates, favorites list and the ability to collaborate with customers, vendors and colleagues to review documents online and track their edits with track changes for ease of use. You will be able to choose the subscription option that best meets your needs: annual subscription to the full set of documents, annual subscription to a single document or single-use contracts and documents. Contracts will be available in the following series: construction, sales of completed dwellings, remodeling contracts and subcontracts. Sign up today at nahb.org to receive exclusive introductory pricing and advance notice when the site goes live.

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www.kchba.org | Volume 20, No. 7 | July 2014

NAHB 2015 Committee & Council Appointment Application NAHB is looking for members to serve on committees and councils for 2015. One of the best experiences, for those who volunteer at the local and state levels, is to work on a national committee. It gives you an opportunity to help your building industry by contributing to the national committee efforts of helping our locals back home as well as meeting like-minded members from around the country. Talk about expanding your social circles! NAHB committees include:

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Associate Members Committee This committee represents two-thirds of NAHB’s members. Members plan meetings, events, awards, leadership opportunities, programs and more. Construction Liability, Risk Management, and Building Materials Committee This committee works to advance the industry’s interests relating to the risks associated with the construction of new homes and remodeling. Business Management & Information Technology Committee This committee’s mission is to improve the business management skills of NAHB builder and remodeler members.

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Construction Safety & Health Committee This committee provides NAHB members and state and local associations with assistance and resources to help builders operate safe job sites.

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Construction, Codes and Standards Committee This committee guides NAHB’s advocacy efforts addressing critical building codes and standards issues challenging the home building industry. Convention & Meetings Committee The Convention & Meetings Committee has responsibility for the National Association of Home Builders’ tradeshow and sponsorship activities. Custom Home Builders Committee The committee creates strategic alliances that educate builders in areas related to 4

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custom homes and reviews proposed NAHB resolutions and policies as they specifically relate to custom home building. Design Committee The Design Committee promotes public awareness of new and effective design solutions and increases communication and interaction between designers and builders. Education Committee The Education Committee has oversight and responsibility for all member business education programs. Environmental Issues Committee The Environment Issues Committee (EIC) has jurisdiction over environmental matters affecting the acquisition, sale, or development of residential and commercial real estate. Federal Government Affairs Committee This committee monitors Congress and promotes grassroots participation. Housing Finance Committee The Housing Finance Committee examines a broad range of issues relating to government-sponsored and private sector single- and multifamily loan programs. Land Development Committee The Land Development Committee promotes responsible, high-quality, and cost-effective land development practices. Legal Action Committee The Legal Action Committee was created to build positive legal precedent for the housing industry nationwide and direct legal services for NAHB members. Membership Committee The NAHB Membership Committee is focused on three core activities: increasing awareness of how national membership adds value to local membership, supporting the recruitment efforts of affiliated local associations, and supporting the retention efforts of local associations. Continued on page 5

July 2014 | Volume 20, No. 7 | www.kchba.org

Preparations for Fall Parade Underway

Misty Hanson of Stewart Title distributed awards to Spring Contest winners at the April 30th celebration.

With the opening weekend of the Fall Parade of Homes about 12 weeks away, builders, subcontractors and HBA staff are busy preparing for the annual event. Entry deadlines for homes on the parade are: July 11 (early), July 18 (regular) and July 25 (late). The Parade begins on September 27 and continues through October 11. HBA members will gather to celebrate the contest winners on October 1 at the Gallery in the Power & Light District. A huge thank you goes to Stewart Title for generously sponsoring both the Spring and Fall Parades.

Committee Application Continued from page 4 Public Affairs Committee The Public Affairs Committee oversees efforts to hone NAHB’s messages so that they resonate with key audiences. Resolutions Committee The Resolutions Committee is charged with reviewing proposed and current association policies. State & Local Government Affairs Committee This committee takes an active interest in the actions of state and local governing bodies that have an effect on home building.

Board Approves Moving Forward with Affinity Proposal

This month’s tip is: Legal Information Available through NAHB NAHB provides legal research on building industry-related issues to all members and affiliated home builder associations. While we do not replace your local attorney, our legal team can give you valuable information and answers that will get you started on solving your problem, and save you time and money. Isn’t that part of why you became an NAHB member?

The HBA Board of Directors, at their May meeting, appointed a Task Force to review a proposal for an affinity relationship between the Home Builders Association of Greater Kansas City and a member company. This agreement would offer a bundle of services to HBA members including a wide range of insurance products. The Task Force considered whether the proposal was cost effective for builder and associate members, whether the plan would provide a unique benefit for HBA members and whether or not the relationship would be beneficial to the Association itself. After careful consideration, it was determined that this proposal would indeed be a “win/ win” for members and the organization. At the June Board of Directors meeting, the executive committee was directed to continue negotiations and to finalize the details of the program. It is expected that the program will be available to HBA members in the next few months.

We have a wide variety of legal research resources, including access to several nationally recognized law libraries, as well as computerized legal databases such as Westlaw, that contain over three million court opinions, federal and state statutes, and numerous legal journals and publications. We will research your question and provide you with a written summary of any related laws, citations to legal case precedents from appellate courts throughout the country, and a wealth of other information. You don’t need a legal background to use the Legal Research program -- all you have to do is be a member of NAHB. Simply call, email, or write to the NAHB attorneys and give a brief overview of your problem or question. Even if you don’t have a specific problem, but would like to learn more about issues that affect the building industry as a whole, we can be of assistance. Our experienced staff and in-depth resources allow us to give you information on numerous building industry-related topics. You may contact the Legal Research Program by filling out an online form to outline your specific problem and request a response. For information on other issues not listed here, just give us a call or complete the form. Here are some examples of industry issues: Architectural & Aesthetic Controls Copyrights Environmental Issues General Liability Insurance Licensing Mold Permits Restrictive Covenants Zoning & Planning Contracts & Liability

Are you interested? If so, you are encouraged to submit an application at nahb.org/2015committeeform today! The application deadline is September 21, 2014.

Exterior Insulation Finish Systems (EIFS) Exactions & Impact Fees Labor & Trade Contractor Issues Mechanics Liens Moratoria Public Utilities Warranties Industry-Related Legal Tips

For more information please contact David Crump at 800-368-5242 x8491 or via email at dcrump@nahb.org. 5

www.kchba.org | Volume 20, No. 7 | July 2014

KCHBA Members Attend HBA of Missouri Meeting in Jefferson City The HBA of Missouri (HBAM) gathered on June 18 in Jefferson City for its summer meeting. The discussion included a wrap up of the Missouri legislative session, association member reports from across the state and a NAHB update from Bob Frost, NAHB’s State Representative for Missouri. Misty Hanson, HBAM’s Treasurer and Secretary, attended the meeting. George Schluter was also present

to report on building code issues and represent Kansas City, Missouri builders. The HBAM includes the HBA of Central Missouri, the HBA of Greater Springfield, the HBA of Southwest Missouri, the HBA of Lake of the Ozarks and the HBA of Greater Kansas City. For more information about the HBAM, please contact Beatriz Ibarra at bibarra@kchba.org.

Builders’ Confidence Level –

How are You Feeling? According to the National Association of Home Builders, the NAHB/Wells Fargo Housing Market Index for June rose four points to 49, just shy of the 50 mark indicating at least as much optimism as pessimism among single-family home builders. Builders are beginning to see customer confidence return but buyers do remain hesitant until their jobs are more secure and their home equity improves enough to make a down payment on a new home. The 4-month consecutive 200,000+ monthly increase in national job formations has and will continue to help consumers believe the economic recovery for the nation and for them individually will continue. This national balance between optimism and pessimism is echoed in the local Kansas City market. Single family residential permits for 2014 are slightly ahead of 2013’s level, but with just a 4% increase, the volume has not grown significantly. On the sales side of the equation, the Kansas City Regional Association of Realtors Real Estate Market Report for May states that the number of new homes sold in May increased by only 1% from May 2013. The average selling price of a new home did,

We proudly support the home building industry.

however, increase 6% from May 2013 to May 2014. The supply of both existing homes and new homes on the market represents a balance between sellers and buyers. Statistically, the Kansas City new home industry appears to be in a holding pattern this spring.

Plan Now for IBS 2015 The International Builders Show (IBS) will be held January 20th through the 22nd in Las Vegas. Registration opens September 2nd for both IBS and lodging at the Wynn Encore Hotel. The Kansas City Home Builders Association has reserved a block of 40 rooms at the Wynn. IBS 2015 will be very special for Kansas City HBA members as our own Tom Woods takes office as Chairman of the National Association of Home Builders. Visit www. BuildersShow.com for information regarding IBS 2015 or contact Dawn Allen (dawn@kchba.org or 816-733-2239) with registration or other questions. Dawn is also the contact person for hospitality suite sponsorship opportunities.

July 2014 | Volume 20, No. 7 | www.kchba.org

HBA-PAC Trustees Host a Celebration for BUILD-PAC Contributors

Richard Mather and Mary & Bob Frost enjoying the company and conversation of the evening. HBA members and their guests joined the HBA’s Political Action Committee (HBA-PAC) Trustees on June 18 for an evening of celebration and appreciation for their personal contributions to BUILDPAC, the National Association of Home Builder’s Political Action Committee. The celebration was held at the lovely home of Stan and Nancy Woodworth in Bucyrus, Kansas. The HBA-PAC hosts a BUILD-PAC fundraiser every year to thank KCHBA members for their contributions. BUILDPAC’s mission is to elect pro-housing candidates to Congress who will defend the home building industry, guard against

harmful regulations and protect your business. Supporting BUILD-PAC also helps increase the success of electing candidates at the state and local level who make housing a top priority. On behalf of the Kansas City home building industry, the KCHBA would like to thank its members for their personal investment and commitment to BUILDPAC. We especially want to thank our high donor members, including: Capitol Club Tom Woods Gold Key Leo Ashner

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Call today 816-942-8800, or email gina@kchba.org or scorless@kchba.org

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Alan White Shawn Woods Stan Woodworth For more information about the HBA-PAC or BUILD-PAC, please contact Beatriz Ibarra at bibarra@kchba.org.

Contact MGE to learn more at 800-582-1234. 7

www.kchba.org | Volume 20, No. 7 | July 2014

Welcome New Members www.probuild.com

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Anniversaries 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. 1958 Bodine-Ashner Builders, Inc. 1974 Culling Insurance Services, LLC Willis Construction, Inc. 1979 Dusselier & Marks Homes, Inc. 1986 Jones Iron & Metal, Inc. 1987 Chris George Homes, Inc. 1989 B L Rieke Custom Homes, Inc 1993 K C Drywall Construction, Inc. 1994 Forner-LaVoy Builders, Inc 1998 Atmos Energy 1999 R. E. Taylor Construction, LLC 2001 McGraw Homes, Inc. 2003 Kansas City NARI Olympus Custom Homes 2005 Habitat for Humanity Kansas City, Inc Roeser Homes, LLC 8

2006 Stoneworth Building Products 2007 Harrington Brothers Inc. Heating and Cooling 2010 Woodbridge Homes, Inc. 2011 Aspen Homes Fasone & Partners ParkView Homes, LLC Pfeifer Homes, Inc 2012 Amber Roofing, LLC 2013 Absolute Audio Goodman Distribution Inc Kevin Higdon Construction Larson Building Company Lifestyles Custom Homes & Remodeling, Inc Midwest Lumber O’Connor Co. Renascence Homes, LLC Signature Builders SVB Wood Floors ZG Realty, LLC

July 2014 | Volume 20, No. 7 | www.kchba.org

HBA Night at the K

Three hundred HBA members and guests watched as the Royals battled the Seattle Mariners on June 20th. The warm summer evening started with a tailgate cookout in the parking lot and the festive evening also included the Big Slick Celebrity sponge ball tournament, Buck Night and fireworks. HBA night at the Royals was made possible by the following sponsors: Bank of Blue Valley Blind Corners & Curves Continental Title Designed 4 You Eastern Jackson County Builders Factory Direct, a Ferguson Enterprise First Federal Bank Henges Insulation K&E Flatwork Kansas Gas Service Kitchens & Baths by Briggs Missouri Gas Energy Mize Houser & Company Progressive Environmental (Safety Dave) SAB Homes Stewart Title Weber Flooring

www.kchba.org | Volume 20, No. 7 | July 2014

Kansas Cityâ&#x20AC;&#x2122;s most historic golf course was the site of this yearâ&#x20AC;&#x2122;s event Team Roeser Homes, Mike Martin, Austin Roeser, John Judge and Jeff Sheppard, placed 1st in Flight A

Team Locks & Pulls: Craig Archer, Kirk Amos, Travis Booth, Brad Jackson

Team First Federal: Bob Sloan, Skeet Jameson, Keith Fenwick, and Alan White

Golf Tournament Thirty-three teams enjoyed a breezy and beautiful day for golf on June 17 at Hillcrest Country Club. The annual HBA Golf Tournament kicked off with donuts and orange juice provided by Stewart Title. Golfers then enjoyed special treats along the course provided by generous hole sponsors listed below. Winning teams were: 1st Place, A Flight: Roeser Homes; 2nd Place, A Flight: United Heating, Cooling & Plumbing; 1st Place, B Flight: Kansas City Star; 2nd Place, B Flight: Bank of Blue Valley. 2014 Golf Tournament Sponsors Aflac Bank of Blue Valley Commerce Bank Continental Title Factory Direct, a Ferguson Enterprises First American Title Kitchens & Baths by Briggs Locks and Pulls Millard Lumber Nebraska Furniture Mart/Builder Division Northcraft Flooring & Granite Design ProSource Roth Distributing Shamrock Cabinets Top Master Special thanks to the Golf committee members: Chairperson Misty Hanson, Stewart Title Alan White, First Federal Bank Joel Hubbard, Commerce Bank Stacey Shannon, AFLAC Amy Holdman, Roth Distributing Christine Hayes, Kitchens & Baths by Briggs

Kevin Green and Marty Haivala prepare to start their round

Team Bank of Blue Valley, Bruce Easterly, Steve Fleischaker, Cody Richardson and Matt Barnett placed 2nd in Flight B

Team Stewart Title: Mark Mather, Richard Mather, Misty Hanson, Marty Albertson and Matt Ernst

Team Deffenbaugh Industries, Jeremy Woolf, Jeff Siebel, Jason Webb and John Blessing in action 10

Leo Harris and Gregg Sherwood

Team REW Materials, Oscar Gutierrez, Mike Hemphill, Tracy Reinertson and Gary Kerns

Tim Drape and Jared Webb of the Kansas City Star placed 1st in Flight B

Team United Cooling, Eric Hinrichs, Dave Neighbors, Glen Dowding and Brandon Riley placed 2nd in Flight A

July 2014 | Volume 20, No. 7 | www.kchba.org

Member Q&A

Peru and Pakistan. Fortunately I have an awesome team of people and a great partner to manage the business while I’m away.

Where do you like to go for fun? Going to our local hang out with friends and playing trivia.

What is something people don’t know about you? Something that people don’t know about us is that we have multiple companies. One of them is called AIM LLC. We take investor funds and use the profits for charitable projects like the hospital here in India. It’s a great concept because our partners get a substantial return on their investment and get to write it off as a charitable contribution.

Chris Carley Owner, Partner Tabernacle, Inc. How did you get into your business? I built my 1st home in 2001. I spent about 40 hours a week on it and although it took longer than I anticipated it would, I was extremely blessed by both the experience and financial benefits of home ownership. I decided to change careers and help others find the same thing. What are the goals for your business? Innovation is a constantly changing business model so I don’t know that you ever meet your goals--they are just constantly evolving. One goal is creating a healthy long term environment for our associates. We have an incredible team here at Tabernacle Homes; I could not ask for a better group of people to work with. Another goal is making a positive impact on our industry by changing how people approach the home building process. Our value proposition concept helps our clients get the most out of their money and our web based pricing model is the only one in Kansas City. You can actually price out most of our plans online. It’s extremely helpful using our web site to research your home building dreams. What do you like to do outside of work? Helping people--I do a lot of missions work. Actually as I’m writing this I’m in Simdega, India at a hospital site that we helped build. At some point in your life you need to start thinking about more than just yourself, so now that I’m older and my children are grown, I spend more time serving others. Where do you like to go for fun? Not much, mostly I’m a chronic workaholic. So simple things like an occasional movie or time with my wife Roxanna and the kids. Whatever spare time I have I’m traveling, this year I’ll also be in Uganda,

What is something people don’t know about you? Not much. I’m pretty much an open and honest person. What is your favorite movie? Sweet Home Alabama Television show? The Blacklist

What is your prediction for the home building industry? I think here in Kansas City it will be strong for the next couple of years, or at least until the elections, you know how that goes. We’ve seen considerable cost increases this year, especially in labor expenses. Most of the people that left construction when the market dropped did not return when things got better, so we’re trying to build twice the homes in Kansas City with a work force that’s not able to grow as fast. Because of this we’re not trying to grow our business in the sense of more projects; if we did we couldn’t retain the quality we’re known for. My advice to people is, that if you’re thinking about building a new home, don’t wait—it’s just going to get more expensive the longer you do.

Jill Koeshall Owner Northcraft Flooring and Granite Design How did you get into your business? I started in working in my Dad’s store when I was in high school and it got in my blood. I was hooked from there. What are the goals for your business? To continue to grow and hopefully expand to a second location. What do you like to do outside of work? I spend a lot of time watching my kids play sports. Also, I like going to concerts and spending time with my family.

What is your favorite HBA event/meeting experience? As you know I was an HBA board member for two years. I think the best part was the people I met during that time. There are a lot of quality builders in our area and there’s a lot of advantages to working together. To know people like Don Julian, Bruce Rieke, Jim Lambie, Chad Buck and Austin Roeser makes what we do even more fulfilling. They are just a few of the people whose involvement in the HBA makes the HBA worth being a part of. Why did you decide to join the HBA? Besides the relationships, being part of the HBA means you’re associated with people who ascribe to a higher set of standards. We’re all involved because we sincerely care about our industry and the clients we serve in the home building process. Most people don’t understand all the bureaucracy, government mandates, political issues and special interests that are all causing their homes to be more expensive than they need to be. I think building with an HBA member is a smart move for every consumer and let’s face it, our Fall and Spring Parade of Homes are the best in the country.

What is your prediction for the home building industry? I believe we are in a growth state for the next 10 years. However a slow growth but not a downward spiral like the past. What is your favorite HBA event/meeting experience? The parade of homes award ceremonies. It’s nice to see so many builders and associates in the same room. Why did you decide to join the HBA? I believe in the support that both builders and associates get from this outstanding organization and the ability to make so many great connections and friends.

COUNT ON US 1,350 locations. All 50 states. 300 showrooms. 19,000 associates. 60 years in business. LIGHTING | fIxTures | cabINeTs fauceTs | pLumbING Lenexa, Ks (913) 752-5660 Topeka, Ks (785) 354-4305 Independence, mO (816) 252-0060 Downtown Kansas city, mO (816) 842-1008

www.kchba.org | Volume 20, No. 7 | July 2014

May Residential Permits Hold Steady Residential building permits have not yet approached the monthly averages established during the past 35 years, but May 2014 did extend the levels achieved during the past 12 months. With 381 single family permits issued during May 2014, the year-to-date total for 2014 is now 1,685 for the eight county metropolitan area. While May’s permit count is a decrease of 60 permits from April, the year-to-date total is a 4 percent increase over 2013, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. Multi-family permits totaled 445 during May with year-to-date of 1,604 which is the most since 2001. “Once again May numbers were a little short of April’s, but the market continues

to improve,” said Executive Vice President Sara Corless. “Builder confidence seems to be up and summer sales and closings are filling the calendar while builders make plans for producing fall inventory.” The list of 10 most active cities remained unchanged from May 2013 to May 2014, with the exception of Basehor, which has replaced Leawood in the group. Kansas City continues to top the list, followed by Olathe, Overland Park, Lee’s Summit and Blue Springs in the top five. Permits are split evenly between Kansas and Missouri, with 843 and 842 respectively, continuing a trend that has held steady for the past several years. Johnson County has recorded 663 permits during 2014, or 39% of the total issued in the area.

Thanks to These HBA 2014 Sponsors Platinum sponsor

Bank of Blue Valley GOLD sponsors

Capitol Federal Bank Factory Direct Appliance First Federal Bank Henges Insulation K & E Flatwork Kansas City Star Kenny’s Tile & Flooring McCray Lumber & Millwork Nebraska Furniture Mart

TELL YOUR STORY Promote your community or new homes to over 200,000* new home shoppers each week that read The Kansas City Star’s real estate sections either in print or online. Call for details 816-234-4739

Northcraft Flooring & Granite Owen Lumber Co. Phelps Engineering ProBuild Shamrock Cabinets Star Drywall & Insulation Sun Lumber Co. United Heating, Cooling & Plumbing Wells Fargo Silver sponsors

* Source: Scarborough research, August 2013

Ferguson Enterprises, Inc. Stewart Title

Kansas Gas Services Missouri Gas Energy

Bronze sponsors Building Solutions Carpenters District Council Commerce Bank Complete Home Concepts Continental Title Company CrossFirst Bank

To advertise, call your account executive or Sharon Horgan at (816) 234-4739 12

First American Title Hermes Landscaping James Hardie Building Products Kansas City Title Kitchens & Baths by Briggs Locks & Pulls North American Savings Bank

Pacific Mutual Door & Window Pella Products of Kansas City ProSource of Lenexa Secured Title of Kansas City Western Chandelier 84 Lumber

July 2014 | Volume 20, No. 7 | www.kchba.org

HBA Staff

Shamrock Cabinet

Sara Corless Executive Vice President scorless@kchba.org, 816-733-2216 Beatriz Ibarra Vice President of Government Affairs bibarra@kchba.org, 816-733-2237 Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219 Marcia Jurgens Director of Administration marcia@kchba.org, 816-733-2215 Jenni Dold Director of Marketing Jenni@kchba.org, 816-942-8800 Andrew McKeegan Association Services Manager Andrew@kchba.org, 816-733-2224 Phil Yancey Membership Manager Phil@kchba.org, 816-733-2245 Dawn Allen Executive Assistant/Communication and Events dawn@kchba.org, 816-942-8800 Cara Thomas Director, Home Show cara@kchba.org, 816-733-2217

Stronger than ever!

Family Owned for 48 years. www.ShamrockCabinet.com

816.737.2300

Dedicated to helping you put buyers into homes

BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY July 2014 • Volume 20 • Issue 7 Copyright 2014 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: Beatriz Ibarra Graphics Karla Peterie, Creative Services 2014 Executive Committee Home Builders Association of Greater Kansas City President Chris Ragland Vice President Mark Mather Secretary/Treasurer Brenner Holland Associate Representative Kevin Kirtley Immediate Past President Fred Delibero

To subscribe to Building Business News call (816) 733-2224 To advertise in Building Business News call (816) 942-8800 For change of address requests please fax changes to (816) 942-8367 or call (816) 942-8800 For more information, visit the HBA online at www.kchba.org

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www.kchba.org | Volume 20, No. 7 | July 2014

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Parade Entry Deadlines:

Early - July 11 | Regular - July 18 | Late - July 25 To enter your home, simply download a parade entry form online or contact Gina Battle at gina@kchba.org or (816) 733-2219.

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Residential Building Permit Statistics

July 2014 | Volume 20, No. 7 | www.kchba.org

Residential Building Permit Statistics

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

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

Single Family Units^

M-F Units Sale%

M-F Units Rent

4 2 5 0 0 0 1 0 0 0 2 15 1 30

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

0 0 0 40 4 0 3 3 0 3 53

May 2014 MAY 2014

Total Units

S-F Units YTD

M-F Sale YTD

M-F Rent YTD

Total Units YTD

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

4 2 5 0 0 0 1 0 0 0 2 15 1 30

9 2 17 0 0 0 4 1 11 7 8 30 5 94

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

9 2 17 0 0 0 4 1 11 7 8 30 5 94

0 0 0 0 0 0 0 0 0 0 0

0 0 0 12 0 0 0 0 0 0 12

0 0 0 52 4 0 3 3 0 3 65

21 0 1 203 18 1 9 6 0 20 279

0 0 0 0 0 0 0 0 0 0 0

0 0 0 24 0 0 0 0 0 0 24

21 0 1 227 18 1 9 6 0 20 303

19 0 3 2 4 2 4 2 1 30 2 0 0 69

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

0 0 0 0 0 0 0 23 0 0 0 0 0 23

19 0 3 2 4 2 4 25 1 30 2 0 0 92

90 0 31 7 17 17 20 17 5 99 6 0 0 309

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

0 0 0 0 0 0 0 480 0 42 0 0 0 522

90 0 31 7 17 17 20 497 5 141 6 0 0 831

0 29 4 0 3 0 0 0 36

0 0 0 0 0 0 0 0 0

0 350 0 0 0 0 0 0 350

0 379 4 0 3 0 0 0 386

0 83 29 1 46 0 1 0 160

0 0 0 0 0 0 0 0 0

0 350 0 0 0 0 0 0 350

0 433 29 1 46 0 1 0 510

2 0 0 6 3 6 20 0 0 54 40 2 20 0 0 153

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

0 0 0 0 0 0 60 0 0 0 0 0 0 0 0 60

2 0 0 6 3 6 80 0 0 54 40 2 20 0 0 213

5 0 0 21 11 33 83 1 0 228 182 7 75 17 0 663

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

0 0 0 0 0 0 306 0 0 0 402 0 0 0 0 708

5 0 0 21 11 33 389 1 0 228 584 7 75 17 0 1371

Single Family Units^ LEAVENWORTH COUNTY Basehor 11 Lansing 2 Leav. County 6 Leavenworth 0 Tonganoxie 1 20 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill#

MAY 2014

M-F Units Sale%

M-F Units Rent

Total Units

S-F Units YTD

M-F Sale YTD

M-F Rent YTD

Total Units YTD

0 0 0 0 0 0

11 2 6 0 1 20

41 3 26 3 10 83

0 0 0 0 0 0

41 3 26 3 10 83

3 0 15 18

0 0 0 0

3 0 15 18

7 1 69 77

0 0 0 0

7 1 69 77

0 2 0 0 0 2

0 0 0 0 0 0

0 2 0 0 0 2

0 17 0 0 3 20

0 0 0 0 0 0

0 17 0 0 3 20

381

445

826

1685

1604

3289

Comparison of Single Family Building Units for Greater Kansas City

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

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

2007 353 475 824 687 677 616 546 515 397 597 385 313

2008 221 262 353 441 231 260 311 293 264 314 167 115

2009 96 129 131 184 189 204 196 207 219 226 192 182

2010 137 145 252 228 213 239 180 243 173 279 173 209

2011 90 121 180 210 230 262 204 205 202 205 185 207

2012 188 182 270 277 294 268 288 260 379 331 283 279

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

Annual Total

6,385

3,232

2,155

2,471

2,301

3,299

4,090 1,685

2014 283 219 361 441 381

All numbers shown in the box above are ACTUAL numbers.

Comparison of Permits By Units Issued Year to Date* 2007-2014

2007 2008 2009 2010 2011 2012 2013 2014

S-F Units 3016 1508 729 975 831 1211 1613 1685

M-F Units

358 1219 23 55 272 121 1450 1604

Total Units

3374 2727 752 1030 1103 1332 3063 3289

^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.

www.kchba.org | Volume 20, No. 7 | July 2014

HBA Members Receive an Education in New Home Construction On June 12 the HBA’s Sales and Marketing Council offered a unique educational experience entitled Onsite Home Construction 101, a home builder-guided tour through three homes at different stages of construction within the same development. The event took place at the Chapel Hill development in Overland Park, Kansas. Participants first gathered at the Chapel Hill sales office to hear from Owner/Developer, Richard Lashbrook. Lashbrook explained how the development got off the ground, the present and future plans for the development and the challenges of being a developer from financing to government regulation. Randy Sallee, home builder, Sallee Homes, Inc., served as the instructor for the next three stops on the tour: homes in the foundation, framing and final stages of construction. Participants developed a deeper understanding of issues from getting a permit to framing techniques to

getting a house move-in ready. The wellrounded experience was also completed by the sound of loud trucks, dust in the air and dirt on our shoes. “I was very impressed by the organization of the HBA’s Onsite Home Construction 101. Roy Ragland and Randy Sallee’s detailed information outlined the beginning to the end of home building. The open Q&A at each stop of our tour was very educational. I can’t imagine what the neighbors thought when all of us piled out of our tour bus to have lunch from the Little Italy food truck in the driveway of one of the houses. It was quite a sight.” Jann Walter, Crider Carpet

Construction 101 attendees enjoyed a damp but informative morning.

The HBA greatly appreciates Richard Lashbrook, Randy Sallee and Mike Yancik (with Sallee Homes) for their participation in this event and Roy Ragland for helping to coordinate the tour. Please check kchba.org for information about other upcoming events.

This group of HBA members gained a better understanding of the home building process

2015 exhibitor booths are filling up fast! Reach tens of thousands of homeowners who are LOOKING TO BUY

Fill your pipeline with solid leads for the upcoming year

Contact cara@kchba.org to reserve your spot today!

March 20 - 22, 2015 16

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