July 2015 Building Business News

July 2015

Artisan Tour Anticipation Builds Confined Space Rule – Page 4 Delay in New Disclosures – Page 5 ICC Code Proposals – Page 12

The annual golf tournament drew 30 teams to Hillcrest Country Club for fun and competition. See pages 8-9 for winners and photos.

The Home Builders Association of Greater Kansas City will present the latest addition to our parade of homes family, the Artisan Home Tour, September 12th through the 20th. This tour will showcase ten of Kansas City’s finest custom home builders and the unique and impeccable qualities of their one-of-a-kind homes. The Artisan Home Tour will be a ticketed tour benefitting the event’s charitable partner, the Ronald McDonald House Charities Kansas City. The 2015 Artisan Tour is sponsored by Ferguson Bath, Kitchen & Lighting Gallery, Kansas Gas Service, the Kansas City Star and Spaces, and Country Club Bank.

A drone’s eye view of the Lambie Custom Homes Artisan Tour entry: they took the shot in early June to get the lay of the land for the corner lot in the Highlands Creek subdivision in Leawood. The gorgeous roof seen on this Artisan home No. 7 is concrete tile in the Nottingham profile with the color of Bellagio.

The KCHBA has a proud history of presenting new homes to Kansas City area residents and this tour is a special opportunity to share the neighborhoods, landscaping, floorplans, exquisite finishes and craftsmanship of upscale, custom homes. To introduce the event to the home building industry, the KCHBA will sponsor several special events as the event kicks-off.

Members of the Artisan Tour committee, chaired by Dobbe Dobberstine, have made trips to similar tours held in Minneapolis and consulted with their sponsoring home builders association in order to organize Kansas City’s inaugural custom tour event. Committee members have met regularly for over a year to iron out the many details—from entry requirements to the look and feel

of the guidebook.

For a sneak preview of the builders and their homes, visit the brand new website ArtisanHomeTourKC.org. The website serves as a hub for the tour with builder profiles, renderings and descriptions of the homes, and links for purchasing tickets and downloading a mobile app.

www.kchba.org | Volume 21, No. 7 | July 2015

Small Companies Dominate NAHB Membership

July Calendar July 4 Happy Independence Day!

NAHB’s recently published 2014 Membership Census shows that members’ businesses are improving from the worst effects of the housing market downturn.

It also refutes previous speculation that the composition of the membership might change permanently as a result of the Great Recession.

July 16 Lunch, Learn & Earn Credit Class Board of Directors July 21 Meeting

The typical NAHB builder member today is a 56-year-old small business owner whose company constructs one to 10 housing units a year and has fewer than a dozen employees, the census indicates.

Certified New Home Aug 5–7 Sales Professional Class For more information or to register for any event, go to www.kchba.org or call 816-942-8800

Local trends are similar to this national survey result--Kansas City area home builders averaged 8 units each in 2014, according to KCBHA residential permit statistics.

BUILDERS WHO CAN CHOOSE ANY WINDOW DON’T JUST CHOOSE ANY WINDOW. With a classic blend of engineering and craftsmanship, time-tested 400 Series products offer the beauty, performance and durability you’ve always wanted. So when you’re building a home, trust the windows and patio doors builders trust most — Andersen® windows and doors.

Why choose anything else?

Builder Members Category 62%

22%

5%

• Belton, MO 617 N. Scott (816) 331-2211 • Excelsior Springs, MO 24805 NE 69 Hwy (816) 628-6025 • Lee’s Summit, MO 312 SE Main (816) 524-3522

2

4%

2%

1%

36%

The rest (68%) work in a wide range of housing industry areas. These Associate members typically include

owenlumber.com

4%

Associate Members Business Category

About one-third (32%) of NAHB’s 140,000 members are in the Builder category. This means their primary business is single-family construction, multifamily construction,remodeling,landdevelopment, commercial building or the manufacture of modular, panelized or log homes. The KCHBA membership has a higher percentage of builder members at 43% of the total.

“ENERGY STAR” is a registered trademark of the U.S. Environmental Protection Agency.

“Andersen” and all other marks where denoted are trademarks of Andersen Corporation. © 2015 Andersen Corporation. All rights reserved. MS1501_0052

subcontractors and people in fields such as finance, sales and marketing, design and manufacturing.

That broad profile of the NAHB membership hasn’t changed significantly in years. However, the impact of the Great Recession and slow housing market recovery is evident in some details of the

23%

13%

10%

10% 6%

membership census.

In 2014, the majority of NAHB’s Builder members (62%) listed single-family building as their primary business activity. Another 22% cited residential remodeling as their primary business activity. Land development was cited by 5%. Both commercial building and multifamily construction were listed by 4% of members as their primary business activity. The remainder of builder members were involved in commercial Continued on page 14 remodeling

July 2015 | Volume 21, No. 7 | www.kchba.org

Phil Yancey

You’ll Find It Here For Less

There’s a hole in the heart of the HBA today as we say good-bye to our friend, Phil Yancey. Phil passed away on June 20th after a short but fierce fight against cancer.

Phil was an active HBA member and volunteer for many years as he chaired the Associates Council and Missouri South PAC. He was named Associate of the Year in 2007 and elected to the HBA Board of Directors in 2009. Then, in 2012, he resigned from the board to join the staff of the HBA as Membership Manager. He rapidly took on responsibilities for the Associates Council, the Golf Tournament and Clay Shoot and was a key member of the Home Show team. Most of all, Phil brought so many wonderful things to the office each day – his sense of humor, his down-to-earth approach to life, his special rapport with HBA members and we can’t forget the fabulous eggs from his free-range chickens and some of the best tomatoes ever grown. One of the things Phil talked

Unrivaled Selection • Legendary Low Prices • All The Top Brands

Phil Yancey about most often was the activities he shared with his grandchildren--sometimes we even got to meet some of his beloved grandkids. Our hearts go out to his family and especially the grandsons and granddaughters – it was apparent that Phil was one of the best grandpas ever.

1601 Village West Parkway • Kansas City, KS Mon – Sat: 10am to 9pm, Sun: 10am to 6pm Kitchen Design Studio: 913-288-6124 Electronics Design/Installation: 913-288-6500 Interior Design Gallery: 913-288-6354 ©2015 Nebraska Furniture Mart, Inc.

We’re going to miss Phil Yancey, a oneof-a-kind member of the HBA family.

HBA Night at the K Three hundred HBA members and guests rooted for the Royals at the KCHBA’s annual Night at the K on June 19th. The evening kicked off with the Big Slick Celebrity softball game and ended with fireworks.

In between, fans watched the Royals battle the Boston Red Sox Harold & Donna Phelps and Mary & Bob Frost enjoyed and enjoyed Buck Night. the evening among friends.

Thanks go to the following Energy, Mize Houser & Co., ProBuild, sponsors: Bank of Blue Progressive Environmental & Safety, Valley, Jack Baker, Construction & PlanProSource of Kansas City and Secured ning Services, Eastern Jackson County Title of Kansas City.

Builders, K&E Flatwork, Missouri Gas 3

www.kchba.org | Volume 21, No. 7 | July 2015

Confined Spaces Rule Unwieldy and Confusing, Builders Say Reactions from builders regarding the Occupational Safety and Health Administration’s (OSHA) new confined spaces rule ranged from confusion to frustration at the recent NAHB Construction, Safety and Health Committee meeting.

Taking the guess work out of building energy efficient homes.

Saving America’s Energy Since 1932

Paul Bolon, OSHA Director of Construction Standards and Guidance, gave a general overview of the rule, but left a lot of unanswered questions on the table. The rule, which goes into effect Aug. 3, is intended to protect workers who are working in tight spaces. But when it comes to compliance, there’s a lot of gray area that builders are concerned could lead to increased inspections and fines.

al protective equipment and additional signage to special emergency communications tools and electronic sensors that read changes in air quality.

Builders also need to be aware that doing any work (e.g., spraying foam) could introduce a hazard to a space that was previously not considered a permitrequired space.

Many also wanted to know where the line is drawn when it comes to labeling a space “permit-required,” and whether a permit needed to be posted for a permit-required space whether there was activity in the space or not.

DANGER

Home & Commercial Insulation Fireplace Sales & Service

CONFINED SPACE

HengesInsulation.com 913-764-4600

For one, the definitions of “confined space” and “permit-required confined space” are both very broad. There is significant confusion about how and when to initially determine whether a space is permit-required or not — especially if there are no known hazards. The problem with this, a few mentioned, is that just because there are no known hazards does not mean they do not exist.

Plus, the way the rule is written, it appears that builders would need to post a permit for any confined space that may have a potential hazard, including falls, heat and low visibility. If a hazard exists, then the space would become a permit-required space and builders would need to comply with the rules mandated for that type of space. These rules can range from requiring the use of person4

Some of the language in the rule is equally confusing. Many at the meeting had assumed that “permit required” meant a permit that needed to be obtained from a local government agency. Apparently, that is not the case. “The permit that you post can be your own company-designed permit. It can be whatever you’ve deemed is needed to be at the worksite so that folks enter the space safely,” said Willie Martin, a builder from Baton Rouge, La., who is familiar with the rule. “This is not a Department of Public Works or state department permit.

You design it yourself to make sure your worksite safe.”

NAHB has compiled a fact sheet and other information that will help with compliance—go to nahb.org and search for “confined spaces” for these resources.

NAHB Now, 6/6/15

July 2015 | Volume 21, No. 7 | www.kchba.org

Fall Trade Show

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 26 through 30, 2015. 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 entire Kansas City metropolitan area. Each day you will have access to a thousand or more different potential customers. For information or to reserve your booth space, contact Dawn Allen at 816-942-8800 or dawn@kchba.org.

New Lending Rules Delayed Until Oct. 1 In a victory for consumers, builders, lenders and other industry stakeholders, the Consumer Financial Protection Bureau (CFPB) has announced that new mortgage lending rules scheduled to take effect on Aug. 1 will be delayed until Oct. 1. On Oct. 1, the Good Faith Estimate, the Truth in Lending and HUD-1 Settlement Statements will be replaced by the CPBP’s new integrated disclosure forms, the “Loan Estimate” and the “Closing Disclosure.”

The biggest change is that the Closing Disclosure must be provided to the consumer a full three days prior to closing, and if there are certain changes during that 72-hour period, the closing could be delayed.

The KCHBA presented a panel discus-

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

sion on June 16 to prepare builders, lenders and others for the new rules.

Due to high demand a second presentation will be scheduled, most likely in late August or early September.

NAHBNow, 6/18/15

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 Tom Dulick, First American Title; Dave Blomquist, Chicago Title; Brent Symonds, Wells Fargo Mortgage; Matt Kendall, Arvest Mortgage; Marty Albertson,Stewart Title spoke to a full room regarding the new rules for mortgage disclosures.

© 2015 Stewart.

5

www.kchba.org | Volume 21, No. 7 | July 2015

LOVE WHAT YOU BUILD.

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.

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

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

PROBUILD LUMBER 103 SE OLDHAM PKWY LEES SUMMIT, MO 64081 816.246.5373

www.probuild.com

ROCKTOPS

© 2015 Andersen Corporation. All rights reserved

6

July 2015 | Volume 21, No. 7 | www.kchba.org

Kansas Legislative Wrap-Up June 12, 2015 marked the last day of the Kansas legislative session. It lasted a record-breaking 113 days, the last few weeks of which were spent attempting to balance the state budget. Income tax cuts passed in 2012, better known as the “March to Zero,” have resulted in the need for a different source of state revenue. After eliminating nearly $400 million in state spending by various government agencies, the legislature still faced a budget shortfall of another $400 million. In order to compensate for this deficit, Governor Brownback asked for a transition to consumption taxes. Legislators created a broad tax package in response, of which the main provisions are outlined and further explained below.

FY 2016 Budget Provisions • Sales tax increased from 6.1% to 6.5% • Cigarette tax increased by 50 cents

The Legislature’s budget plan also eliminates most itemized tax deductions and reduces deductions for charitable contributions, home mortgage interest, and property tax payments. Last year legislation passed to phase down the mortgage interest deduction (MID) over several years until it reached a 50% threshold.

The current tax package accelerates that haircut and implements the reduction to 50% immediately.

• Tax of guaranteed payments for certain business owners • Elimination of most itemized deductions • An accelerated haircut for the mortgage interest deduction • Tax amnesty program • Local property tax lid • Low-income exclusion

Kansas will also implement a tax amnesty program that waives penalties for people and business who pay their back taxes this fall. It is estimated to bring in $30 million in revenue. Also, a new property tax lid would require cities and counties to get voters’ approval before increasing property taxes at a rate greater than inflation. Finally, an income tax exemption was given for individuals with incomes below $5,000 a year and couples with incomes below $12,500.

The consumption tax plan is largely based on the increases in sales tax and cigarette tax, which will generate over half the revenue of the $384 budget plan. The introduced tax of guaranteed payments applies to owners of Limited Liability Companies (LLCs) that are classified as partnerships. This provision accounts for roughly $23.7 million of the tax plan. Additionally, a freeze will be placed on future income tax cuts unless the government generates a surplus.

Overall, this tax package comes close to closing the state budget gap. However, Governor Brownback must cut another $50 million in the fall before the budget is completely balanced.

Patent Trolling Kansas also enacted legislation designed to punish bad faith patent assertions this session, commonly referred to as “patent trolling.” Patent trolls do not manufacture anything, but instead focus on suing companies for alleged patent infringement, causing those companies to spend millions of dollars on legal fees. Not only does this stifle the economy, it can also result in a company going out of business. Senate Bill 38 makes Kansas the 26th state since 2013 to make patent trolling an offense punishable by law. The federal government has also decided to re-examine the issue and has introduced a patent trolling component of H.R. 9, “The Innovation Act.” Continued on page 13

The Preferred Insulation Contractor of the Midwest Specializing in every type of insulation for every type of situation • Attic Insulation • Batted Insulation • Blow Insulation • Blow-in-Blanket System • Draft Stop Packages • Basement/Crawl Insulation Systems • Fire Proofing

“Honest, Dependable, Comfort” Oh, and that thing called customer service

Call 913-281-2250 for a Free Estimate 7

• Foam Insulation • Insulation Removal • Sound Proofing • Open Cell Spray Foam • Closed Cell Spray Foam • Ignition Barriers

www.insulatekansascity.com

www.kchba.org | Volume 21, No. 7 | July 2015

HBA Golf Tournament 2015

Step Up to Higher Profits.

Construction Plus Financing Contact us today to learn more about our one-time close loan solution that saves you time and money.

The Shamrock Cabinets team prepares to start the day

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

6950 Squibb Road, Ste 6950 Squibb Road, Ste 500

500

Mission, 66202 Mission, KS KS 66202 913-529-1130

Little Italy visited Hillcrest to provide lunch

913-529-1130

Mid-Continent Group

Multiple Warranty Options

Multiple Warranty Options General Liability Builders Risk Auto General Liability

Worker’s Compensation Builders Risk

Bonds Health/Life Bonds

FREE subcontractor insurance certificate review service for our clients

Auto

Worker’s Compensation Health/Life ****** Local Representation ******

FREE subcontractor insurance certificate review service for our clients Insuring Kansas City area builders for more than 50 years

******Local Representation****** 8

Insuring Kansas City area builders for more than 50 years

The Kenny’s tile team surveys the course

July 2015 | Volume 21, No. 7 | www.kchba.org

HBA Golf Tournament Sponsored by Wells Fargo Home Mortgage, the annual KCHBA golf tournament drew 30 teams for a cloudy but mostly dry day at the Hillcrest Country Club on June 17. After registration and starting the day with pastries provided

by Stewart Title, the golfers took to the course and then enjoyed lunch from the Little Italy food truck. Winning teams were:

Jessica Emerson of Century Marketing had lots of goodies for the golfers

First Place – Flight A Roeser Homes, LLC • John Judge • Mike Martin • Austin Roeser • Thad Snider Second Place – Flight A Teague Electric Construction Inc. • Doug Bowes • David Hufferd • Don Klamm • Greg Musier First Place – Flight B Stewart Title • Matt Ernst • Jim Griffiths • Misty Hanson • Kevin Stucker Second Place – Flight B First Federal Bank • Bruce Coffin • Robert Fitzgerald • Scot Johansen • Mike Pate

Representatives of Teague Electric relax between visits from golf teams

Brenner Holland, Hunt Midwest, drives the ball

Golf Tournament Sponsors 2-10 Home Builders Warranty Central Bank of the Midwest Century Marketing Inc. Continental Title Company Cort Factory Direct Appliance a Ferguson Ent. First American Title Missouri Gas Energy Owen Lumber Company Pacific Mutual Door & Window PPG Paints ProSource of Kansas City Secured Title of Kansas City Shamrock Cabinet Teague Electric Construction Inc Top Master Weber Carpet, Inc. Wells Fargo Home Mortgage 9

Matt Ernst, Ernst Brothers Construction, a member of one of the winning teams

www.kchba.org | Volume 21, No. 7 | July 2015

Meet the Artisan Builders The Home Builders Association of Greater Kansas City will present the area’s first Artisan Home tour this fall, September 12-20. A ticketed event benefitting the Ronald McDonald House Charities Kansas City, the tour will showcase ten builders and their custom homes.

Ambassador Construction: Translating Lifestyles and Dreams into Reality Ambassador Construction has specialized in building creative, high quality homes throughout the Greater Kansas City area since 1972, accumulating numerous local and national awards along the way.

Brothers Craig and Keith Eymann, who formed the company along with their father, have become well known for the construction of oneof-a-kind custom homes. They offer their clients personal assistance during every phase of building a new home, from lot selection, plan design, and material selection to completion of the home. They are committed to making the building process rewarding and enjoyable for the homeowner. Many buyers return to build a second home and even third home, proving the reputation of trust and confidence in the resale value of an Ambassador Home.

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

By building a select few houses a year and using many of the same top quality subcontractors year after year, Ambassador is able to maintain the highest level of excellence in quality craftsmanship, materials and architectural style.

Craig was the Managing Developer for Cedar Creek, which is a 5,000 acre Master Planned Community, a past President of the Olathe Chamber of Commerce and has served as Chairman of the Board for the Olathe Economic Development Council. He is a past President of the Kansas City Home Builders Association

913-338-1000 | www.bankbv.com

MEMBER FDIC 10

and currently serves on its National Board of Directors.

“I enjoy the challenge of building a diverse range of architectural styles, having built homes that range from modern contemporary to elegant old world designs,” explains Keith, who attended Kansas State University where he studied construction management and landscape architecture. “It is important that proper techniques are blended with authentic materials to insure the integrity of each Ambassador Home,” he adds.

Their early involvement with clients begins with the site selection, continues through the design process, and finally, translating lifestyles and dreams into reality.

“The satisfaction of exceeding our client’s expectations makes the extra time and effort put forth worthwhile,” noted Keith.

July 2015 | Volume 21, No. 7 | www.kchba.org

Casa Bella Construction: Exceeding the Clients’ Expectations

Pride in everything we do – even in the work you don’t see.

Casa Bella Construction has earned a reputation as one of the Kansas City metro area’s premier custom home builders. They are consistent winners of the Home Builders Association’s American Dream Grand Award, Pick of the Parade, and Distinctive Design and Plan contests. They have also won many Kansas City Home and Gardens and Kansas City at Home publications’ Model of the Year Awards.

Russ Groshans, Founder and CEO, says “Although it’s nice to be recognized by all these awards, what is most rewarding is the feedback we receive from our clients.”

Groshans explains that, “Working with some of the area’s most discerning home buyers continually challenges us to grow in many wonderful ways.” Today’s homebuyers are much more informed than they used to be.

They are tech savvy and up to date on the latest design trends, both nationally and internationally. The internet has truly made the world a smaller place.”

Casa Bella takes pride in the broad range of architectural styles they have had the opportunity to design and build over the years. Groshans says, “As long as it is thoughtfully designed and flawlessly executed, all of the architectural designs can be special and have mass appeal.”

As a Certified Graduate Builder and Certified Green Professional, Russ Groshans is well versed on “Best Build Practices,” which he consistently incorporates in all of his homes. His passion for the home building process is infectious. That is most evident when speaking with any of Casa Bella’s talented staff or tradesmen. “The Team” as he refers to them, is composed of some of the area’s most highly skilled professionals. These team members

often refer to Groshans as a perfectionist with an incredible eye for detail. They say that, while the very high standards he sets forth can be difficult to achieve, they appreciate that Groshans is consistent with his expectations.

SERVING KANSAS CITY’S FINEST BUILDERS FOR OVER 30 YEARS.

www.starcompanieskc.com

Groshans is quick to point out that much of Casa Bella’s success is the direct result of the support he gets from his family. His wife, Lise, is a Certified Public Accountant, and serves as the company’s Vice President and C.F.O. His daughter, Amber Jury, is an extremely talented artist, who after serving as Casa Bella’s Marketing and Communications Director, recently assumed the role of Chief Design Consultant. According to Groshans, this single change has taken the company to new heights.

8320 Westridge | Raytown, MO 64138 | PHONE 816.363.2160 | FAX 816.353.2163

T 4

Dedicated to helping you put buyers into homes

P U

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.

Groshans says he has learned much from working with very discerning homeowners on custom and design-built homes over the years. It has provided him the opportunity to make certain that quality systems are in place to support the client throughout the process, so they never feel overwhelmed.

Northland Office: 816-505-4110 Lee’s Summit Office: 816-329-2109 Overland Park Office: 913-319-7970 KC Bank Office: 913-234-7703

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

Renovation Office: 913-234-2925

He says Casa Bella has always had one primary goal: “To consistently exceed clients’ expectations, while making ourselves better in the process.”

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 11

www.kchba.org | Volume 21, No. 7 | July 2015

5 Code Proposals with Big Price Tags

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

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

“The Little Agency

That Roars!”

Fasone & Partners

There are dozens of proposals to change the next edition of the International Code Council’s model codes that have a particularly big impact on home building practices and on builders’ bottom lines.

Code would have to be built at least 100 feet apart from each other, not very plausible for infill developments in urban and close suburban neighborhoods. Requested Final Action: Disapprove

Here are 5 examples — and 5 reasons to talk to your code officials who will vote on these proposals at the ICC Public Comment Hearings or online during the Governmental Consensus Voting Period this fall. Visit the Code Official Toolkit at NAHB.org to see additional code proposal changes and get suggestions to get these conversations rolling.

M85-15 – Flexible Duct Length: This code change proposal limits flexible duct lengths to a 5-foot maximum. The proposed limit will impact the ability to install flexible ducts in attics and in locations poorly suited for rigid ductwork.

The change will also increase the cost of typical installations. Requested Final Action: Disapprove

As George Schluter and others often remind KCHBA members, it is up to the industry to start spreading the word with local building officials about the effect these onerous and unneeded code changes will have on home building. While you are talking to them about the cdpACCESS voting this fall, remind them that they must designate their Voting Representatives to ICC before August 30, 2015.

P101-15 Part I and II – Size of water service pipe: This proposal will increase the minimum size of water service piping from ¾ inch to 1 inch in diameter for both the International Plumbing Code and the International Residential Code.

This is a solution looking for a problem that doesn’t exist. Modern fixtures have decreased water consumption, lowering peak demand in older homes. If sprinklers are required, they frequently have a separate tap and need to be properly sized based on the application, not an arbitrary diameter. The additional fee for the larger connection varies by jurisdiction, in some cases the cost increase can be in excess of $2,000. Requested Final Action: Disapprove

G226-15 – Fire Prevention Superintendent: This proposal would require a fire prevention superintendent from an approved agency to be present 24/7 during construction of all Type V buildings.

Advertising Marketing PR

Celebrating 40 years of Results!

If this is approved, add another independent third-party inspector to your budget.

Requested Final Action: Disapprove

Make your business ROAR!

G162-15 – Horizontal Separation: This proposal would require a 50-foot separation distance from Type V buildings (with light-frame wood construction) above a horizontal separation to lot lines or adjoining buildings on the same lot.

The result: Low-rise multifamily and mixed-use buildings consisting of several floors of wood framing over top of a concrete or steel “podium” and constructed using the International Building

Contact Karol Angotti or Michal Fasone 816.753.7272 karol@fasonepartners.com or mj@fasonepartners.com

FasonePartners.com

Partners with HBA Advertising | Marketing | Digital since | PR

2010 12

RM32-15 – Return air plenums: This proposal would remove the ability to use a stud wall or floor joists cavity for return air plenums. This would prevent a traditional and effective construction practice without any data to support the change. Currently there is no requirement to have any return ducting. The existing code allows for panned return air plenum that provide a more effective path back to the air handler than no return. No reason to change the code.

Requested Final Action: Disapprove NAHBNow, 6/12/15

July 2015 | Volume 21, No. 7 | www.kchba.org

Kansas

negative experience ratings (those with frequent or large layoffs of employees).

Unemployment Insurance

Transportation

Continued from page 7

Another notable product of the Kansas 2015 legislative session relates to unemployment insurance. Senate Bill 154 changes the unemployment insurance payments system – moving from an arrayed system – to a more fixed cost.

The bill institutes a maximum weekly benefit cap of either $474, or 55 percent of the average weekly wages paid to employees in insured work during the previous calendar year, whichever is greater. Generally speaking it will benefit those companies who have a positive balance (those who have paid more in unemployment taxes than their employees have utilized in benefits) and will have a negative impact on those with

KC Energy Empowerment Ordinance On June 4, 2015, the city council of Kansas City, Missouri passed a new Energy Empowerment Ordinance with a vote of 12-1. The Ordinance requires large commercial and multi-family residential buildings to benchmark and report their energy and water usage.

While not mandating a change to current usage levels, this action was an initiative

by Mayor Sly to encourage Kansas City to become more sustainable. Requirements begin with municipal buildings over 10,000 square feet in 2016 but ex-

Kansas also passed a transportation bill this session relating to commercial motor vehicles operated in intrastate commerce. Under Senate Bill 21, those who operate solely in Kansas will not be required to obtain a certificate, license, or permit from the Kansas Corporation Commission (KCC), or comply with a number of previously applicable regulations. If the commercial vehicle is between 10,001-26000 pounds it must have an annual vehicle inspection, comply with load securement regulations, and comply with “coupling device” regulations, but are exempt from all other safety and economic regulations.

Thanks to These HBA 2015 Sponsors Platinum sponsors

Kansas city Star Spaces Magazine KENNY’S TILE Bovard Insurance Group Carpenters District Council

Olathe Roundtable Follow-Up Recently Olathe experienced a backlog of building code inspections that caused long delays in the building process. Inspections were being scheduled a week out or longer, resulting in frustration for everyone involved. On June 2, the HBA hosted a roundtable discussion with Olathe officials and local builders to clearly identify the issues at hand and work to find solutions. John Kelley, Chief Building Official, Jeff DeGraffenreid, Fire Chief, and David Clements, Planning Director were in attendance from the Olathe Building Codes Division. According to the officials, the long inspection delays were a result of workforce shortage and scheduling inefficiencies. However, they committed to changing the current system and promised initial results by June 15.

The HBA has since reached out to meeting participants to receive feedback about Olathe inspections. Responses were mixed, but the majority agreed there was immediate improvement. Sev-

pand in May, 2017 to owners of private commercial, institutional, and multifamily residential buildings over 100,000 square feet. Buildings over 50,000 square feet will comply in May, 2018.

They will be required to calculate socalled energy “benchmarks” or face fines. Beginning in the fall of 2018, the data will be compiled annually and made available to the public. Kansas City is the 14th municipality in the United States and the third in the Midwest to enact this legislation.

eral builders affirmed they experienced next-day appointments when scheduling their inspections. Progress appears to have been made, but time will confirm if the turnaround has been comprehensive.

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

Until the situation has been fully resolved, Olathe officials offered builders a few temporary solutions. Until July 1, 2015, home builders were able to hire third party Kansas licensed engineers of the civil or social disciplines to conduct pre-backfill inspections around their home foundations. Additionally, garage portal framing, window flashing, and exterior nail pattern inspections may be included with the 4-trade home rough-in inspection rather than being scheduled separately. Finally, builders may contact Eric Meats, Building Code Inspection Supervisor, before 11 AM each business day to reschedule one inspection. He may be reached direct at 913-971-9853 or by his cell 913-205-6003. Please also contact the HBA with further feedback if desired.

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 First American Title 13

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 Shamrock Cabinet

www.kchba.org | Volume 21, No. 7 | July 2015

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 Andrew McKeegan Association Services Manager Andrew@kchba.org, 816-733-2224 Dawn Allen Executive Assistant/ Communication and Events dawn@kchba.org, 816-942-8800 Stephanie Stollsteimer Director of Marketing & Special Projects stephanie@kchba.org, 816-733-2213

Member Anniversaries

BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY July 2015 • Volume 21 • Issue 7

1958 Bodine-Ashner Builders, Inc.

Copyright 2015

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

1974 Culling Insurance Services, LLC Willis Construction, Inc.

Executive Vice President Sara Corless Editor Marcia Jurgens Contributing Writer Katie Walkley

1979 Dusselier & Marks Homes, Inc. 1986 Jones Iron & Metal, Inc.

Graphics Karla Peterie, Creative Services

2015 Executive Committee Home Builders Association of Greater Kansas City President Mark Mather Vice President Brenner Holland Secretary/Treasurer Harold Phelps Associate Representative Kevin Kirtley Immediate Past President Chris Ragland

1987 Chris George Homes, Inc. 1989 B L Rieke Custom Homes, Inc 1993 K C Drywall Construction, Inc.

To subscribe to Building Business News call (816) 733-2224 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

1994 Forner-LaVoy Builders, Inc 1998 Atmos Energy 1999 R. E. Taylor Construction, LLC 2001 McGraw Homes, Inc.

Click this logo at

2003 Kansas City NARI Olympus Custom Homes

www.kchba.org to login to your account

2005 Roeser Homes, LLC

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

2006 Stoneworth Building Products

Tricia French Special Projects Assistant tricia@kchba.org, 816-733-2241

2010 Woodbridge Homes, Inc.

Katie Walkley Government Affairs Intern tricia@kchba.org, 816-733-2241

2007 Harrington Brothers Inc. Heating and Cooling

Online Resources for HBA Members!

2011 Aspen Homes Fasone & Partners ParkView Homes, LLC Pfeifer Homes, Inc

Register for HBA Events with Safe & secure online registration. Personalized calendar of events.

Get notification of your events

Update Your Membership

Call today 816-942-8800, or email gina@ kchba.org or scorless@kchba.org 14

2012 Amber Roofing, LLC Rodrock Development 2013 Kevin Higdon Construction Larson Building Company Midwest Lumber O’Connor Co. Renascence Homes, LLC Signature Builders SVB Wood Floors 2014 4 Corners Homes KC. LLC Besel’s Dave Richards Home Building, Inc. Elite Tree Service, Inc Ferguson Drywall Co., Inc. Paradise Home Builders, LLC Pierce Custom Homes, Inc Sterling Homes LLC

NAHB Membership

Continued from page 2 and modular, panelized or log home manufacturing.

Associates Represent Wide Range of Professions About a third (36%) of all Associates are subcontractors or specialty trade contractors such as carpenters, electricians and plumbers. Another 13% work in various professional specialty fields such as engineering and architecture, and 10% are involved in retail dealerships or distributorships.

About 10% work in financial services, and another 6% are wholesale dealers or distributors. The remainder of associates (23%) work in a broad range of “other” areas including such diverse fields as property management, manufacturing and utilities. They are predominantly small businesses with a median of nine employees.

Residential Building permit Statistics July 2015 | Volume 21, No. 7 | www.kchba.org

May Residential Permits Hold Steady The extremely rainy May weather has caused delays in homes under construction and is reflected in a slight decrease in permit activity throughout the metro area as the number of permits issued decreased from April’s total. With 392 single family permits issued during May 2015, the year-to-date total for 2015 is now 1,715 for the eight county metropolitan area. While May’s permit count is a decrease of 44 permits from April, the year-to-date total is a 2 percent increase over 2014, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. Multi-family permits totaled 270 during May with year-to-date of 1,408.

“In spite of the fall in permits in May, the continued trend line is toward expansion and growth in activity year to date.

Rain, worker shortages, rising building costs…builders continue to be optimistic and buyers are keeping inventory low” said Executive Vice President Sara Corless.

The list of 10 most active cities remained unchanged from May 2014 to May 2015, with the exception of Raymore, which has replaced Basehor in the group. Kansas City continues to top the list, followed by Olathe, Overland Park, Lee’s Summit and Lenexa in the top five. In contrast to previous years, permit activity in the Missouri counties has surpassed that of Kansas counties with 56% of total permits issued on the Missouri side. Missouri growth is focused in Clay County which has issued 35% more permits in 2015 compared to 2014, while Johnson County has decreased by 12% from last year’s total.

May 2015 Residential Building PermitMAY Statistics 2015 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

M-F Rent YTD

Total Units YTD

0 0 0 0 0 0 0 1 3 0 0 16 1 21

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

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

0 0 0 0 0 0 0 1 3 0 0 16 1 21

2 6 8 1 0 0 4 2 15 1 11 34 4 88

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 6 8 1 0 0 4 2 15 1 11 40 4 94

8 0 5 62 11 0 0 0 0 9 95

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

8 0 5 62 11 0 0 0 0 9 95

15 0 10 297 26 0 11 4 0 20 383

0 0 0 0 0 0 0 0 0 0 0

0 0 0 336 0 0 0 0 0 0 336

15 0 10 633 26 0 11 4 0 20 719

24 0 10 0 2 7 0 16 4 15 3 0 0 81

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

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

24 0 10 0 2 7 0 16 4 15 3 0 0 81

68 0 32 5 12 33 12 37 10 114 11 0 0 334

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

0 0 0 0 0 0 0 46 0 153 0 0 0 199

68 0 32 5 12 33 12 83 10 267 11 0 0 533

0 21 10 0 17 0 2 0 50

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 21 10 0 17 0 2 0 50

0 58 30 0 51 0 8 0 147

0 0 0 0 0 0 0 0 0

0 5 0 0 0 0 0 0 5

0 63 30 0 51 0 8 0 152

2 0 0 11 2 2 27 0 1 29 31 1 18 3 0 127

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

0 0 0 0 0 0 0 0 0 132 106 0 0 0 0 238

2 0 0 11 2 2 27 0 1 161 137 1 18 3 0 365

4 0 2 20 12 26 77 4 4 193 166 9 50 19 0 586

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

0 0 0 72 0 0 0 0 0 141 617 0 0 0 0 830

4 0 2 92 12 26 77 4 4 334 783 9 50 19 0 1416

15

Single Family Units^ LEAVENWORTH COUNTY Basehor 2 Lansing 0 Leav. County 3 Leavenworth 1 Tonganoxie 1 7 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill

Totals

M-F Units Sale%

M-F Units Rent

Total Units

S-F Units YTD

M-F Sale YTD

M-F Rent YTD

Total Units YTD

0 0 0 0 0 0

0 0 0 0 0 0

2 0 3 1 1 7

32 5 30 6 10 83

0 0 0 0 0 0

0 0 0 0 0 0

32 5 30 6 10 83

1 0 2 3

0 0 0 0

0 0 0 0

1 0 2 3

4 1 59 64

0 0 0 0

0 0 0 0

4 1 59 64

3 2 0 0 3 8

0 0 0 0 0 0

32 0 0 0 0 32

35 2 0 0 3 40

7 14 0 0 9 30

0 0 0 0 0 0

32 0 0 0 0 32

39 14 0 0 9 62

392

0

270

662

1715

0

1408

3123

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

1,715

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

235 260 392 436 392

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 1508 729 975 831 1211 1613 1689 1715

M-F Units

1219 23 55 272 121 1450 1604 1408

Total Units

2727 752 1030 1103 1332 3063 3293 3123

^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.

Updated 6/17/15 with May data received after 6/15.

www.kchba.org | Volume 21, No. 7 | July 2015

16