July 2017
KCHBA Forestalls Concrete Cul-de-Sac Mandate
Kansas Area Council Report – page 4 NAHB Legislative Day – page 5 Designation Classes – page 19
Pella’s contest at the Golf Tournament benefits Ronald McDonald House, see page 11
The City of Overland Park has been considering a proposal for over a year to require cul-de-sacs in new developments be constructed with concrete rather than asphalt. City staff met with builders and developers in 2016, during which the development community voiced several concerns, including the increased costs, aesthetics, and justification for the change. There is no doubt that concrete culde-sacs would be significantly more expensive than asphalt and would lead to considerable delays when developers pave new subdivisions. The HBA repeatedly expressed to the City of Overland Park that concrete cul-de-sacs were not the appropriate solution to their pavement maintenance concerns. The process culminated in a Public Works Committee Meeting on Wednesday, June 28 in which committee members heard from staff about the proposal and then opened the meeting to public testimony. Speakers included Executive Vice President Josh Clark, HBA President Harold Phelps, Tom French, Rob Curtis, Jim Lambie, Dan Norburg, and Jeff Carson from the Kansas City Regional Realtors Association, which also opposes the change. Overland Park City Councilman Terry
Goodman also spoke on the issue, encouraging the committee to listen to the development community’s concerns and emphasizing that the best way to encourage new growth in Overland Park is to maintain a positive relationship with the HBA.
tion to the city’s pavement maintenance concerns. The issue has been postponed until the January 2018 meeting of the Public Works Committee, giving the City and the HBA time to restart this process and explore other options going forward.
Committee Chair Fred Spears communicated his appreciation of the HBA’s feedback and directed city staff to delay the current proposal mandating concrete cul-de-sacs. Instead, the City will sit down with builders and developers and work together to identify the best solu-
The HBA has made a point to become more actively involved in government affairs, especially on the local level. Thank you to everyone who participated in this campaign by making phone calls, providing testimony and attending meetings.
www.kchba.org | Volume 23, No. 7 | July 2017
NAHB Celebrates a Diamond Jubilee
July/August Calendar July 13
Associates Council Meeting
July 18
Board of Directors Meeting
July 20
Shawn McGuire: “Builders Silent Margin Enhancer”
July 26
Missouri South Area Council Meeting
Aug. 10
New Member Happy Hour
Aug. 9–11 Certified Sales Professional Classes
Jon Lambert, Brenner Holland, Amy Kerns, Harold Phelps, Katie Walkley, Gary Kerns, Misty Hanson, Dawn Allen and Josh Clark ready to help celebrate NAHB’s 75th Anniversary
For more information or to register for any event, go to www.kchba.org or call 816-942-8800
NAHB celebrated its 75th anniversary with a gala and directors’ reception during its recent Midyear Meeting in Washington, D.C. “These events are important to celebrating our seven-and-a-half decades of building communities, and they help us remember how important home building is to the nation’s well-being,” NAHB Chairman Granger MacDonald said during the June 17 Board of Directors meeting.
TAILOR
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The gala, supported by key industry sponsors, took place on the evening of June 15 at the Washington Hilton. It began with a program highlighting the significant accomplishments of our industry, the meaning of home and the emotional impact of the American Dream.
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The gala also showcased video of congratulatory remarks from celebrities and current and former Congressional heavyweights, including House Majority Whip Steve Scalise (R-La.) victim of the recent attack in Alexandria, Va. Scal-
ise had recorded his remarks before the incident. Chris Wallace, host of Fox News Channel’s Fox News Sunday, was the featured speaker. Wallace wove together a humorous narrative about his career observing the Washington policy arena with heartfelt stories about the importance of his home as a core part of his family’s life. The directors’ reception took place June 16, the evening before the Board of Directors meeting, at the National Housing Center – NAHB’s headquarters. “For three-quarters of a century, your national organization has fought for home builders, home owners and communities nationwide,” MacDonald said during the reception. “In a world of change, NAHB has been a constant fixture, always working to create a business and political environment in which builders can succeed.” NAHBNow, 6/23/17
July 2017 | Volume 23, No. 7 | www.kchba.org
A Great Night for a Game! Beautiful weather and a comefrom-behind win by the Royals helped make Builder Night at the K on June 23 a huge success. A large crowd gathered at the HBA’s tailgate, sponsored by IKO, which featured hot dogs and brats by the Weiner Wagon. The Royals were down 4 to 1 but came back in the 9th inning to win 5 to 4. Thank you to all who came out to cheer on the Royals – we hope you had a wonderful time!
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www.kchba.org | Volume 23, No. 7 | July 2017
Changes to Kansas Taxes, Trim size: 4.75 x 4.75 Codes Coming
Dedicated to helping you put buyers into homes
Print ad110th day of the 90-day session, “On the Uncoated the Kansas legislature passed a tax plan,” said Sean Miller, executive officer of the Kansas Building Industry Association. “And they may be back in session soon if the Supreme Court says their school funding plan isn’t good enough.”
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Miller shared a brief overview of how the Kansas budget fell into the red and where things stand now that the tax plan has passed at the Kansas Area Council on June 28 at Brookridge Golf Club.
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“We need builders to take their most popular house plan and do a cost analysis on the current regulations versus the 2018 regulations,” Schluter said.
STYLE THAT
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Items in the plan that affect builders include reinstating three tax brackets instead of the current two brackets. Retroactive to Jan. 1, employers should have begun withholding at the full 2018 tax rates on July 1 to properly phase in the effective new rates over the second half of 2017.
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Also speaking at the Kansas Area Council was George Schluter, a builder and NAHB Life Director, who noted that the
More information on the 2018 codes will be coming in This Week at the HBA e-newsletter.
July 2017 | Volume 23, No. 7 | www.kchba.org
KCHBA Visits the Capitol
Meeting with Claire McCaskill
More than 800 builders, remodelers and their trade partners from across the nation visited Capitol Hill on Wednesday, June 14, for the annual NAHB Legislative Conference. The event was held in conjunction with the NAHB Midyear Board Meeting. In a day full of meetings with elected officials and their staff, KCHBA mem-
Meeting with Kevin Yoder
bers called on Congress to make housing and homeownership a national priority and to support policies that will keep the housing recovery moving forward.
Sam Graves and Vicky Hartzler. Members also met with high-ranking staff from the offices of Kansas Senator Jerry Moran, Missouri Senator Roy Blunt, and Missouri Reps. Emmanuel Cleaver and Billy Long.
Kansas City had a strong representation in the Capitol and personally met with Kansas Senator Pat Roberts, Kansas Rep. Kevin Yoder, Missouri Senator Claire McCaskill, and Missouri Reps.
force development, tax reform, energy codes, and the National Flood Insurance Program. The local Congressional delegation demonstrated a broad understanding of these issues and reaffirmed their support of the housing industry.
KCHBA asked for progress on several key housing issues, including: regulations, rising lumber costs, work-
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www.kchba.org | Volume 23, No. 7 | July 2017
Meeting Bob Dole in DC in 1975.
Let’s Celebrate 80 Years of KCHBA! Want to see a 1950s video featuring new homes from that time? Or interviews with the HBA’s past presidents dating back as far as 1969? How about photos of a younger John Moffitt, Jr., Mark Mather and George Schluter? Come to the HBA’s 80th anniversary to see all of this and more as we take a look back at 80 years of the HBA.
In the meantime, here’s a sneak peek at some HBA history: KCHBA members met with former Kansas Senator Bob Dole (standing, behind chair) during the spring 1975 NAHB Spring Board Meeting in Washington, D.C. Sitting is Leo Mullen, former executive officer of the KCHBA.
95% of Builders, 85% of Consumers Satisfied with Parade Ninety-five percent of respondents to a builder survey said they are satisfied with number of consumers that visited their homes on the Spring Parade. Promoting their company names and images was the main reason 61 percent of builders participated in the Spring Parade and 82 percent said they obtained what they consider to be “good leads” that may result in future construction or sales. “Any day you can get a hundred people in your home is a great day,” according to John Shilt. “Even though not all are interested buyers at the time, you still showcase your home to more people in three weeks than
any other event throughout the year,” said Wynne Homes. “We really benefit being able to talk to people directly during the Parade,” said Don Julian Builders. “They are more relaxed and get to know the builder/team directly.”
One respondents even noted, “we live in Lincoln and come down most years for the last 25 years!”
Consumers Mostly Happy Eighty-five percent of respondents to a consumer survey about the Spring Parade said they had a good or excellent experience visiting homes on the Spring Parade. Besides looking for a new home to purchase, many respondents said it is a fun outing and a great way to see the latest trends.
Another said, “I take vacation days each Parade to take part in my passion — such a great service.”
6
As with any large event, however, there were some hiccups during the Parade. Survey respondents were not happy to
visit homes only to find them locked or unfinished. One respondent noted, “We had issues with houses not being open during the posted open hours of the parade. Just today, on our last chance to see any homes, the first three we went to were all closed, which was a frustrating waste of time & gas!!” Another said,
Continued on page 7
July 2017 | Volume 23, No. 7 | www.kchba.org
80-Year-Old Home Transforming Into Impressive IBS Exhibit
Set to debut during the NAHB International Builders’ Show, The New American Remodel 2018 is undergoing a comprehensive remodel that includes allnew products, technology and additions. The home was built in 1937 with a simple floorplan and Italian-luminesce design. Over the years, several additions were made, but those portions of the property were among the first things to go during the renovation. “We want to capitalize on the good [de-
Consumers Satisfied Continued from page 6
“Please, please do not include houses that are currently under construction. When I only have a little time and drive to homes that aren’t finished or even just a basement foundation it causes great frustration.” Finally, one respondent requested we “don’t let it rain.” While we can’t do anything about Mother Nature, we do want to provide consumers with the best Parade experience possible and will work to improve future Parades based on these comments. Thank you to all who took the surveys.
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sign elements of the home] and take away the bad,” said Caron Farina, head of advertising for the project’s builder, Farina & Sons. Their goal, she said, is to create a home for a “real-life family,” as well as provide other remodelers and builders with ideas to incorporate into their own projects.
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It will also illustrate just how much more efficient a home can be by using today’s building products and techniques. Drew Smith of Two Trails Inc., the project’s green building consultant, said the original home scored a whopping 125 on the Home Energy Rating System (HERS) Index.
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“It was one of the least efficient homes we’ve ever measured,” Smith said. That will certainly change when the project wraps up. Smith estimates the final HERS Index score of the home will be well under 60 — meaning it will be more energy efficient that roughly half of all standard new homes.
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www.kchba.org | Volume 23, No. 7 | July 2017
Meet Mike Bryant Heating & Cooling Founder Mike Bryant was raised in the heating and cooling industry, and he has been working professionally in it for more than 36 years. Mike Bryant Heating & Cooling began in 2004 and has specialized in new construction s i n c e then, although it has branched out to include many heating and air conditioning services.
HBA Member Profile
The company has been honored to join and be involved in many organizations, including the Home Builders Association of Greater Kansas City, which it has been a member of since the company’s inception. “We make ourselves available to meet with the builders’ clients to go over standard equipment as well as upgrade choices,” said Bryant. “We also provide post-closing assistance, such as preventative maintenance agreements and a quality assurance walk through with the new homeowner.” When asked for his perspective on the future of the industry, Bryant said he expects increased demand for technological innovations in the products going into their homes. “We can provide information on geothermal ground source, Wi-Fi thermostats and many more innovative products,” said Bryant. Mike Bryant Heating & Cooling has two Master Mechanical license holders on staff, and it is currently licensed in all major municipalities in the Kansas City Metropolitan area. The company was also awarded the 2014, 2015 and 2016 8
Circle of Excellence Award from Lennox International, which is given to the Top 40 dealers in the nation. Outside of work, Bryant enjoys traveling with his family and golfing. His favorite HBA events are the Spring/Fall Parade of Homes award banquets. He also enjoyed participating in the last Home Show. “I feel it’s important to support the home builders organization because of the network opportunities it provides to its members,” said Bryant. And the HBA thanks you for your support, Mike!
Team Captains Wanted for Fall Parade Do you like to win and have a competitive spirit? Then this challenge is for you! The HBA is looking for builders to be captains of Harvesters teams during the Fall Parade. The team that raises the most money for Harvesters will be named the winner of the Hammer Out Hunger Challenge and the team captain will receive free full-page ad in the 2018 Spring Parade guide! Contact Gina@ kchba.org if you are interested in being a team captain.
July 2017 | Volume 23, No. 7 | www.kchba.org
Kansas Legislative Wrap-Up The Kansas Legislature officially adjourned on Monday, June 26. The 2017 legislative session tied the record for the longest regular session in state history, lasting a total of 114 days. The Legislature began this session with a full agenda. The first issue was a nearly $1 billion state deficit over the next two fiscal years. The second was addressing a Supreme Court hearing regarding the constitutionality of a school finance formula and pending court case, and the third was passing tax reform that had the right combination of increases and cuts to fund the budget and K-12 school formula. Those three items lingered until the 108th day of the (supposedly) 90-day session. The House and Senate passed two major tax plans this year and both were vetoed by Governor Brownback. The first, in February, was overridden by the House but fell 3 votes short of an override in the Senate. The second plan was passed extremely late in session, vetoed by the Governor, and promptly overridden by both chambers to become law. It raises $1.2 billion over the next two years, which will fully fund the two-year
budget (also passed late in the year), the new K-12 school finance formula, and nearly $295 million in new spending. The tax plan repeals the exemption for non-wage income (the LLC exemption) but restores the ability to claim non-wage business income losses. In a victory for the home building industry, itemized deductions for property tax and mortgage interest deductions are restored. The plan also returns income tax rates to a three-tier bracket system and raises the rates for each.
PACIFIC MUTUAL DOOR AND WINDOW
Over the lengthy session, the legislature considered a few bills that would impact the home building industry, but none were advanced through the process. The HBA and other interested parties successfully defended the sales tax exemption on labor for new construction, prevented legislation that would dismantle the Johnson County Contractor Licensing program, sustained recent protections for property appraisals, and monitored ongoing discussions about immigration and workers compensation reform.
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The panel will consist of attorney Stan Woodworth, Douthit Frets Rouse Gentil
& Rhodes; warranty company representative Karen Lott, 2-10 Home Builders Warranty; and insurance company representative Shane Porter, Bovard Insurance Group. The panel will also include Ken Sidorowicz, KSPC Engineering Consulting Services, who can speak to recent foundation issues seen in Kansas City. There will be a lot to learn, so we hope to see you there! Contact Tricia (tricia@kchba.org) to make a reservation.
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Missouri South to Teach Members about Liability Practices The next Missouri South Area Council will take place Wednesday, July 26, from 11:30-1 p.m. at Stoney Creek Hotel & Conference Center. The luncheon will feature a liability panel, addressing how builders and associates can protect themselves from lawsuits and other sticky situations, or how to handle them when the situations arise.
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www.kchba.org | Volume 23, No. 7 | July 2017
WOTUS Rule Definitions on the Way Out “NAHB applauds President Trump, the EPA and the Corps for taking the necessary actions to roll back this seriously flawed WOTUS rule that would harm housing affordability by requiring expensive and time-consuming federal permits for countless ditches, isolated ponds and dry channels,” NAHB chairman Granger MacDonald said in a press release.
The EPA and Army Corps of Engineers has proposed to replace the 2015 definition of the term “waters of the United States” (WOTUS) with the text that existed since 1986. The agencies said the action is the first in a two-step process. In Step 2, the government will propose a new definition for WOTUS. Going back to the well-established 1986 definition allows the agencies to provide continuity and clarity to the regulated
“Earlier this year, the president honored a campaign promise made to home builders as he signed an executive order directing EPA and the Corps to begin the process of dismantling the controversial WOTUS rule. This is an important step forward to rework the flawed regulation that blatantly usurped state and local authority,” MacDonald said.
community while deliberating on a new definition. And this time, the agencies said, the path to a new rule will be more public. “As we go through the rulemaking process, we will continue to make the implementation of the Clean Water Act Section 404 regulatory program as transparent as possible for the regulated public,” said Douglas Lamont, acting Assistant Secretary of the Army for Civil Works.
“NAHB looks forward to working with the administration, EPA Administrator Scott Pruitt and [Mr.] Lamont to develop a common-sense solution to protecting our nation’s waterways while taking into account the interests of local businesses and communities nationwide.” NAHBNow, 6/27/17
10
BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY July 2017 • Volume 23 • Issue 7
Copyright 2017 Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 (816) 942-8800
Editor Marcia Jurgens Contributing Writers Katie Walkley and Kari English Graphics Karla Peterie, Creative Services
2017 Executive Committee Home Builders Association of Greater Kansas City
President Harold Phelps Vice President Gary Kerns Secretary/Treasurer Shawn Woods Immediate Past President Brenner Holland Associate Representative Rosemary Vitale 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
July 2017 | Volume 23, No. 7 | www.kchba.org
LET US USE WHAT WE’VE BUILT TO HELP YOU BUILD.
Since 1989, we’ve been helping the community around us grow. Visit bankbv.com or call 913-338-1000 to see if we can help you. Stacy Neal and Ryan Christopher of Pella with Mike Jeffries, Ronald McDonald House
Pella Donates Money Raised During Golf Tournament to RMHC During the HBA golf tournament, for a nominal fee golfers could have a chance to hit a golf ball through � and potentially shatter � a Pella window. Two golfers hit the window but no one shattered it. Afterward, Pella donated the proceeds of that challenge to Ronald McDonald House Charities. A big thank you to Ryan Christopher, Stacy Neal and the rest of the Pella team for providing such a fun opportunity for golfers and for donating the proceeds to such a valuable cause – and one that is close to the HBA’s heart.
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Do You Know Someone Who Has Stayed at a Ronald McDonald House? Whether it’s a family member, a friend or yourself � if you have had an experience with Ronald McDonald House Charities we want to hear about it. Please contact Kari@kchba.org to share your story.
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COMMUNITY | PHILANTHROPY | ENTREPRENEURSHIP
www.kchba.org | Volume 23, No. 7 | July 2017
NAHB Opposes Flood Insurance Bill that Clears House Panel As the House Financial Services Committee voted on June 15 to approve the 21st Century Flood Reform Act, NAHB vowed to fight the measure until a “new construction” component is dropped from the bill. “This is a bad bill that will make flood insurance unaffordable and inaccessible to too many home owners,” said NAHB Chairman Granger MacDonald. At issue is a provision in the bill that would place restrictions on new construction developed in the 100-year floodplain. Specifically, four years after the bill’s enactment, new construction would no longer have access to the National Flood Insurance Program (NFIP), pending the availability of private flood insurance. In a new manager’s amendment, Housing and Insurance Subcommittee Chairman Sean Duffy (R-Wis.) put forward language that would introduce a new Federal Emergency Management Agency-contracted clearinghouse. This suggestion is based on a state model, and NAHB has numerous concerns about how it would work on a federal level. Additionally, if private insurance is not available in a state, NAHB warned House committee leaders in a letter that “home owners will be forced to pay a 10% surcharge on their NFIP policy. This surcharge is a penalty for policyholders solely because they purchased a newly constructed, more resilient home and a market for private insurance has not developed in their state.”
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NAHB further stated that this “new construction” provision places $34 billion in wages and salaries, $24 billion in taxes and revenue, and 587,000 full-time
jobs annually at risk. “Instead of letting private insurance companies enter the market organically, this mandate skews the market through artificial means,” NAHB’s letter to lawmakers stated. Reauthorizing the NFIP, which expires on Sept. 30, is a priority for the association. NAHB will work with lawmakers to ensure that any final reauthorization bill takes into account the concerns of the housing community.
WHY JOIN THE
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July 2017 | Volume 23, No. 7 | www.kchba.org
Problems on Your Job Site?
Builders and associates discussed several topics of importance to their business at the June board meeting. Issues which are affecting them are thefts from job sites, subcontractors’ work, and workers’ compensation insurance coverage. Several builders reported that job site thefts are increasing recently – especially siding in 9’ lengths. Efforts to overcome this include deliveries made just in time for installation and cameras monitoring building sites. Johnson County builders can sign up for the sheriff’s T.R.A.C.E. program, which informs participants of suspicious activities and crime at construction sites. Go to www.jocosheriff. org to register for this service.
Every Year Thousands Save Millions
aged to check with either Kansas or Missouri for status. If you have questions about a subcontractor’s insurance coverage, these sites may be helpful in determining whether they are covered. KANSAS: dol.ks.gov/ WorkComp/coververifi.aspx; click: Coverage Verification. MISSOURI: labor. mo.gov/areyoucovered; click: Employer’s Worker’s Compensation Coverage.
Put Your NAHB Membership to Work Now.
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Be a “Harvesters Home” During the Fall Parade
nahb.org/MA
A new section was added on the Parade entry form dedicated to Harvesters. By checking the donation box and adding a small donation to your Parade entry check or credit card payment you are helping families that cannot afford to put food on their tables. It’s a quick and
The quality of subcontractors’ work was also a topic of discussion. The importance of getting references from other builders before hiring an unknown contractor was emphasized, along with encouraging your subcontractors to join the KCHBA. This is also a crucial element of solving the workforce shortage—more progress can be made if we “play team ball.”
easy way to show your support for the community. All who donate will have this “Harvesters Home” stamp placed on their entries in the Parade guide.
Another element of working with subcontractors was their workers’ compensation insurance coverage, or lack thereof. Because insurance companies often fail to mail cancellation notices to certificate holders, builders are encour-
If you have already submitted your Parade entry form, no worries! Contact Gina@kchba.org to let her know you would like to participate and add the Harvesters Home logo to your home’s listing in the guide book.
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www.kchba.org | Volume 23, No. 7 | July 2017
This month’s pro tip is:
Best in American Living Awards Open for Entries
THE
Among the accolades residential designers and developers strive for, one distinguishes them as industry leaders better than all the rest: a Best in American Living™ Award (BALA). BALA spotlights the most creative and talented professionals who have redefined design excellence for homes and communities nationally and internationally. There are more than 50 categories ranging from custom homes to student housing to historic preservation, and there’s a place for your project in one of eight main groups: • Single-Family Production
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• Specialty BALA winners receive year-long exposure through multiple outlets. Winners are also honored at a prestigious ceremony during the 2018 NAHB International Builders’ Show in Orlando. To enter: 1. Go to bestinamericanliving.com to send in your registration form and fees. 2. Gather and upload your supporting materials, such as photos and videos. 3. Submit your completed entries by Sept. 1.
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New Resource at KCHBA.ORG A consumer information page has been added to the KCHBA website � navigate to the page through kchba.org, click on News/Info and then Consumer Information. This resource for potential home buyers includes: • Why build a home instead of buying pre-existing?
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• How much does it cost to build a new home? (Hint – there’s no set answer) • Why choose an HBA member to build my home?
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• How do I find the right builder? In addition to these topics, articles on trends, decorating and other items will be added to the page on a regular basis. HBA staff fields questions from the public on all of these questions on a regular basis. As the voice of the housing industry, the KCHBA’s consumer information page is intended to be one of the first places a home buyer might visit.
July 2017 | Volume 23, No. 7 | www.kchba.org
Looking for Contracts? NAHB Can Help NAHB offers several ways to access the residential construction contracts and documents crucial to a successful business.
SERIES 300 CONTRACT EXHIBITS – ADDITIONAL TERMS
NAHB Contracts (nahbcontracts.com) is a subscription service with varying levels of access—single contract, annual access to a single contract or an annual subscription with unlimited contracts.
•302: Selection Allowance Worksheet—Fixed Fee – Exhibit “B”
•403: Cancellation Notice Form •404: Lead Paint—Notices and Construction Date Certification
•301: Plans and Specifications— Exhibit “A”
500 SUBCONTRACTS •501: Subcontract—Master Agreement •502: Subcontract—Job Acceptance Form
•303: Selection Allowance Worksheet—Cost-Plus – Exhibit “B”
•503: Subcontract •504: Subcontract Change Order – Exhibit “A” •505: Insulation Disclosure Clause for Subcontractor Please note that the contract forms so provided are generic documents, and are not state-specific. Be advised that some states mandate specific language or notices to be included in residential contracts, and by law may also require a certain location, font size, bold type,
The following contracts are available through this service:
•304: Change Order –Fixed Fee – Exhibit “C”
SERIES 100 CONSTRUCTION CONTRACTS
•305: Change Order—Cost Plus – Exhibit “C”
•101: Fixed Fee Contract—Owner’s Lot
•306: Pricing Request Form
•102: Cost Plus Contract—Owner’s Lot •103: Fixed Fee Contract—Contractor’s Lot •105: Design Services Contract •106: Green Building Addendum •107: Construction Management Agreement SERIES 200 SALES CONTRACTS – COMPLETED DWELLINGS •201: Sale of Spec House with Builder’s Warranty •202: Sale of Spec House –No Warranty—As Is
•307: Final Payment with Retainage for Punchlist Completion—Optional Clause—Fixed Fee •308: Certificate of Acceptance – Exhibit “D” •309: Notice and Opportunity to Cure Agreement •310: Express Limited Warranty Agreement – Exhibit “E” SERIES 400 REMODELING CONTRACTS •401: Remodeling Contract •402: Remodeling Contract—Short Form
15
and/or capitalization for said language or notices. Because the endorsement of contract documents can entail significant responsibilities and legal or tax consequences, it is recommended that an experienced attorney be consulted for advice on questions regarding proper usage. NAHB also offers Contracts & Liability, a CD with more than 150 of the most frequently used builder forms and contracts to smoothly run your business. Save money by customizing these change orders, contracts with owners and suppliers, inspection reports, specification forms and more. Go to nahb. org/products to order this valuable resource – priced at $36.95 for members.
www.kchba.org | Volume 23, No. 7 | July 2017
1987’s 50th Anniversary Letter: Continuity & Change The following is a reprint of an article that appeared in the KCHBA’s 50th Anniversary Edition issue in 1987. It is an imagined “letter” from a grandfather to his grandson recounting the changes in the industry during the first 50 years of the association (1937-1987). Just imagine how this would be updated for the past 30 years …
T
he Home Builders Association of Greater Kansas City (HBA) is 50 years old. And the changes that HBA members have witnessed in their communities and in the building industry during that 50 year span have been phenomenal. Some changes revolutionized the building business, while other more subtle changes were a natural evolution. The following fictional letter full of trivia from yesteryear is intended to give the reader insight into Kansas City’s progressive building industry during the last half century. Thanks to the following people for contributing information for this story: Jack Bear, Jack Bear Companies, Moe Courville, J.C. Nichols Company, and Carson Cowherd, Carson E. Cowherd Town and Country Estates, Inc. To my grandson Michael: You have no idea how proud I was when your father told me you were joining us in the company. You’ve inherited a head for the building industry, and I always fostered the dream that you would someday join us in the family business. You must have always held that dream too, because I have watched you follow a carefully-thought-out plan of action beginning with the high school classes you took through to the coursework you chose at college. Oh, you didn’t ever come right out and say that you were planning to join the business, but I could tell. When you were in high school you continually asked question after question
crashed in 1929 and the economy plummeted, along with all hopes for a prosperous building boom. Oh, I know you know your history and you probably remember dates better than I do, but from 1929 through the Great Depression, things looked pretty grim.
about the industry, and your father and I always tried to give you the best possible answers. When you were old enough, you started working with the rough-in crews so you could learn the business from the ground up, and one summer you even supervised a crew. That was a lot of responsibility for one so young, but you handled it like a pro. After high school graduation you told us you wanted to go to college. Even though we would miss having you around, we knew it was best for you to continue your education. But even during your four years at the university, you never lost an interest in the business. You still asked questions, but they were more indepth. Suddenly you were interested in the engineering aspect and the financial statements of the business. And we were proud of you.
By 1937 we were building 1,100- to 1,200 square-foot homes for around $6,000, and that price included a $500 lot. In those days, it cost us right around $4.25 per square foot to build that home! Today, it would cost you more in the ballpark of $40-$100 per square foot, depending on the amenities you decided to build into the home. Of course, the small home we built was a stripped-down version. All of the popular items of today’s homes were unheard of in 1937. Today’s consumer wouldn’t buy a home like we built then. It would be like buying a base model car — complete with all the necessities but none of the luxuries.
Now you’ve graduated from college with your B.S. in Business Administration and you have obtained both the working knowledge and the book knowledge to succeed in this business. Your father and I are already seeing you take on new responsibilities as if you had always held them. But the building business is forever changing, Michael, and I hope you’ll always keep in the back of your mind how the industry used to be, so that you can more fully appreciate it as it is now.
But we did use some nice extra touches in some of our new homes. In 1937, the first washable wallpaper was marketed by an Ohio firm and we were among the first to use it. We also used glass bricks on the interior of homes — the kind you see coming back into style now — to provide light and insulation and to separate rooms.
I know you’ve probably heard me say all of this before, but humor me and let me tell you a little bit about how the Kansas City area has progressed through the years. You know I have always been a staunch supporter of the Home Builders Association of Greater Kansas City. That group was my lifeline when I first started this business. In fact, we practically began together back in 1937. It doesn’t seem possible that it’s been 50 years. But many of the area builders were members and we would all share our problems and work together to keep the building industry alive. That wasn’t always easy.
Not only were the homes different in 1937, but the building techniques we used weren’t quite what you’re used to, either. I’ll bet it’s hard for you to imagine your granddad on a job site doing the excavation work with a team of mules, but that was the best and fastest method we had then. And the nice concrete foundations we pour today didn’t even exist then. We used 18-inch stone foundations. Energy was another topic that wasn’t a major concern in 1937. We rarely used any wall insulation and usually only minimal ceiling insulation. And can you believe that before the war, I never even used a skill saw?
You see, Michael, the stock market 16
Ranch-styled homes were the most prevalent homes being built at that time. Roeland Park, Prairie Village, Leawood, Fairway, Mission Hills and Independence were all being developed. But business was slow. You could drive through the area and see subdivisions with streets, but little building activity. As the building business crawled along at this rather disappointing pace, World War II infiltrated our lives. During the early ‘40s the building business in Kansas City ceased almost entirely. In fact, from 1941 through 1945 there were only 12 housing starts issued in Prairie Village. But when the war ended, the servicemen returned home and wanted houses built for their families. They wanted to provide shelter and stability, and owning their own homes satisfied those needs. Typically we built two-bedroom houses, some of them expandable to suit the growing families. The majority of the houses we built right after the war tended to be very modest compared to today’s homes, but they were perceived as being pretty special at that time. One thing that never changes is a families’ pride in their home! I can remember from 1945 through 1947 building three-bedroom homes with 1,300 to 1,400 square feet for $20,000 to $25,000. Prairie Village and Leawood really seemed to be the hot building spots, and in the years immediately following the war, so many couples who were beginning families moved to Prairie Village that it became fondly nicknamed “Pregnant Village — Mothering Heights!” I guess the building industry was ready for some changes during the ‘40s, because in 1945 builders began replacing plaster with drywall. We had a little trouble with drywall popping at first because we didn’t know much about the product or how to properly use and install it. But time and experience solved that small problem, and by the 1950s drywall was Continued on page 18
July 2017 | Volume 23, No. 7 | www.kchba.org
Board Nominating Process Underway The Home Builders Association of Greater Kansas City has begun the process of nominating and electing new board members and officers for 2018. Over the next two months, the nominating committee will contact potential candidates for board positions. The names will be presented at the September board meeting, with the election held in November.
builder directors, area council directors and associates. A board member cannot serve for more than two consecutive terms in the same position. However, it is possible for a board member to serve in a different capacity (for example, moving from two terms as an at-large builder to a term as an area council builder) and he or she is also eligible for the same position after a break in service on the board.
consecutive non-excused absences may not vote at the next meeting and does not count toward a quorum at that meeting. The HBA can prosper and grow only through each director’s continued involvement. A director should make a personal commitment to participate and to contribute his thoughts and energy. Responsibilities as a board member include: • Approve and monitor the budget of the association. • Set public policy positions as they pertain to the building industry. • Know the issues of importance to the membership and bring matters of concern to the attention of the association. • Understand how the association works by reading the bylaws and other documents.
The HBA’s board of directors is made up of the following: • HBA Officers: president, vice-president, secretary/treasurer, immediate past president, past presidents’ representative • Elected NAHB directors, their term to coincide with their NAHB term • Elected alternate NAHB directors, their term to coincide with their NAHB term • NAHB Life Directors and Senior Life Directors • Elected at-large builder directors (6) • Elected area council builder directors (6) • Elected associate directors (8) Board terms are two years for at-large
• Assume an active role in the committee activities of the association.
The Board of Directors is the policy-making body of the Home Builders Association of Greater Kansas City, and is responsible for directing the Association’s activities. Board members must be the designated representative of their member company. Regular meetings of the Board of Directors are held on the third Tuesday of each month at the HBA office. The Board meetings are preceded by lunch at 11:30 and often include a speaker. The meeting generally begins around 12:15 and lasts about an hour.
• Respond to governmental call-to-action issues. • Generate new membership for the HBA. • Encourage involvement and participation among fellow members in the projects and activities of the HBA. Any potential nominee who has questions regarding the HBA’s Board of Directors is encouraged to contact HBA staff or a currently serving board member. Each member’s participation in the association is crucial – if a member of the nominating committee contacts you, please be willing to get involved in the leadership of your association.
Because director participation is vital to the function of the association, the bylaws specify that a director who has 5 non-excused absences in a two year term shall be automatically removed from the board. Additionally, any director with 3 17
Best in American Living Summer Issue Have you read the latest issue of Best in American Living? This digital magazine is available on the NAHB’s website. An article titled “Light Up the Yard” reveals results of an NAHB survey regarding consumer preferences for outdoor spaces. The element most in demand – good lighting. A patio was also ranked essential by a vast majority of home buyers. Surprisingly, outdoor kitchens, fireplaces and built-in grills were the least popular features. In fact, more than 20 percent of home buyers said they were unlikely to purchase a home if it included an outdoor kitchen or fireplace. NAHB’s survey result includes rankings of outdoor elements by income level of the respondents. For instance, 75 percent of buyers with greater than $150,000 in income listed lawn sprinklers as essential or desirable, compared to only about half of buyers with incomes under $75,000. The popularity of lawn sprinklers also varies with geography. In the West North Central area (which includes Kansas and Missouri), a lot with trees was ranked essential or desirable by 78 percent of buyers, with a front porch favored by 75 percent. Lawn sprinklers were ranked highly by 56 percent. For more details on this survey and other valuable information, be sure to click on Best in American Living at nahb.org.
www.kchba.org | Volume 23, No. 7 | July 2017
Letter
Continued from page 16
widely accepted in the building industry. In 1947, the best building year since 1925, I traded in my team of mules for a high loader. Concrete trucks were also quite a novelty at first, but we soon grew accus tomed to seeing them pour the new concrete foundations at our job sites. The concrete foundations proved to be a tremendous improvement in strength and durability over the previously-used stone or block foundations. I mentioned that 1947 was a good year for builders — in fact, the building activity was so much greater than anticipated that year that we were plagued with a critical nail shortage. There were several changes in the way we finished homes’ interiors from the 1930s to the 1950s as well. For instance, in the 1930s and 1940s we used
division there when the infamous tornado hit, destroying many of those homes. The HBA builders pitched in to help clean up the mess left behind by storm. By 1957 built-in stoves and ovens were becoming commonplace in new homes, and air conditioning was popular for everybody who could afford it. Of course, with the advent of air conditioning, the enthusiasm for attic fans and screened-in porches diminished.
tile countertops in kitchens and baths, and during the 1950s we began using formica countertops. In the 1940s, General Electric began selling white metal kitchen cabinets. Those things sold like hotcakes! We laid oak flooring throughout the houses we built in the ‘30s and ‘40s. In fact, it wasn’t until the 1950s and 1960s when I began using carpeting in new homes. And then, we laid cotton carpet, which wore easily. At that time, many loan companies wouldn’t approve loan money for the cost of the carpet because carpeting was considered an interior design option and not a standard part of the house as it is today.
While the ranch-styled home was the vogue after World War Il, during the 1960s we began to see a trend toward two-story homes. Today the two-story English and colonial and split level homes are still popular. As land prices continue to increase, we builders are constantly faced with the challenge of finding creative ways to stack more real estate onto a higher land value. I’m sure this problem will not disappear in your lifetime, Michael.
By 1954 we were building homes in the Grandview area. In fact, in 1957, we had just finished some new homes in a sub-
Along with the 1970s came a national economic downturn. While the single family market subsided somewhat, the growth of the apartment market seemed to quickly take its place. We also faced a natural gas supply crisis in the late 1970s. That’s when energy conservation became so important to builders.
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As a builder in the 1980s you will have a more-informed public to cater to. Because of the Parade of Homes and the Home Show offered by the HBA to the public each year, you will have a far more sophisticated and demanding buyer than existed in the past. But that’s positive, because it makes builders continually strive to improve and perfect past housing designs. The emphasis of today’s homes are very strongly on the kitchen and the bathrooms. The kitchens of today versus those of 50 years ago encompass many differences. The dishwasher, garbage disposal, built-in trash compactor and built-in range and oven were unheard of in 1937. And the microwave — what a tremendous invention! The bathrooms of yesteryear don’t begin to compare to those being built today. Fifty years ago a bathroom was an extremely functional, completely unadorned 5-x-7-foot room. Today, a home buyer expects the bath to be big and comfortable and luxurious with built-in vanities, large mirrors, indirect lighting, his-and-hers walk-in closets, brass-plated handles, sculptured or modern-designed plumbing fixtures and whirlpool baths. That’s quite a step up from the typical bath of 50 years ago. Outdoor features have also become big selling points in ‘80s homes. Consumers are looking for more elaborate decks to enjoy outdoor fun, such as barbeques. Hot tubs are another amenity many buyers seek. And land prices have continued to skyrocket throughout the last half century. The old rule of thumb was that the lot price of a home should be 10 percent of the house value. Today that figure is more like 25 percent to 30 percent of the value of the house. While lot prices have become a disproportionate share of the total house price, new home sales have not decreased. And lots which include mature trees are treasured like pieces of gold. We builders have had industry problems to contend with in the past, and you, too, Continued on page 19
July 2017 | Volume 23, No. 7 | www.kchba.org
We Are the Voice of the Housing Industry The PAC Committee would like to thank everyone who has donated to Build-PAC so far this year. This includes the majority of the board and a number of HBA staff – and even those who purchased mulligans during the HBA golf tournament last month. “Writing a check is an investment in your business future,” said Mark Hoffman, builder and PAC Trustee. “Writing a check to the PAC now can help prevent writing checks for additional regulations, restrictions, codes, etc., in the future.” As the committee considers candidates to support in the upcoming municipal elections, please consider donating to Build-PAC if you have not done so already.
“We’re all in this together,” said Jon Lambert, president of Pacific Mutual Door and a PAC Trustee. “Contributing to PAC keeps costs down by minimizing regulations, which helps us all – builders and associates.” If there is a pro-housing city official you would like the HBA to support in the upcoming election cycle, please let Katie or Josh know. “Our support of elected officials and issues demonstrates that we are not a single builder/developer, but rather a unified group with a common interest in protecting and preserving the housing industry,” said Hoffman.
Letter Continued from page 18 will have your share of challenges to face and overcome, such as impact fees and the demands of stricter building codes. And I’m sure you’ll always hear that worn out phrase, “They just don’t build them like they used to.” But don’t let trite phrases passed down from one generation to the next discourage you, Michael. The “good old days” are pretty much a state of mind. And one need only look at the periphery of development and see the new names and fine houses being built to realize that the quality of today’s houses is as good as or better than anything built in past years. Oh, people will always complain about the price tag attached to a new home. But you have to remember how inflation has affected the greenback. In 1937 1 could buy #2 grade lumber for $35 a thousand square foot and now you’ll have to pay 10 times that amount. After the war, I could purchase a 70-x-135 foot
lot in Prairie Village for around $2,800. Today you couldn’t touch a similar lot for $20,000. Yes,inflation has affected the building business, but our industry is still strong and growing. I hope your next 50 years in the business are as fulfilling as mine have been, Michael. Stay true to prefessionalism and honesty. The home building industry needs more young men like you. I’m proud of you, grandson.
We hope you’ve enjoyed this look back at the past. The dollars in home building may have changed, but the essential nature of the business remains the same: a proud industry providing the American Dream for our families, friends and neighbors. Don’t miss the KCHBA’s 80th Anniversary Celebration on August 29th. 19
www.kchba.org | Volume 23, No. 7 | July 2017
Member Anniversaries 1958 Bodine-Ashner Builders, Inc. 1974 Culling Insurance Services, LLC Willis Custom Homes, Inc.
6950 Squibb Road, Ste 500
6950 Squibb Road, Ste 500 Mission, KS 66202 Mission, KS 66202 913-529-1130
1979 Dusselier & Marks Homes, Inc. 1980 Rodrock Development
913-529-1130 MID-CONTINENT GROUP
1986 Jones Iron & Metal, Inc.
Multiple Warranty Options
General Liability Builders Risk Auto
1987 Chris George Homes, Inc.
Bonds
Worker’s Compensation Health/Life
1989 B L Rieke Custom Homes, Inc
Multiple Warranty Options
FREE subcontractor insurance certificate forRisk our clients General Liability review service Builders Bonds
1993 K C Drywall Construction, Inc.
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Auto
Worker’s Compensation
1994 Forner-LaVoy Builders, Inc.
Health/Life
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2013 Kevin Higdon Construction Larson Building Company Midwest Lumber O’Connor Co. Signature Builders SVB Wood Floors 2014 4 Corners Homes KC, LLC Dave Richards Home Building, Inc. Elite Tree Service, Inc. Ferguson Drywall Co., Inc. Paradise Home Builders, LLC 2015 McQueen Homes, Inc. Pauli Homes, Inc.
Atmos Energy
2016
1999 R. E. Taylor Construction, LLC
Alisha Elliott Agency Caesarstone Quartz Johnnie Adams Homes The Gresham Group
2001 McGraw Homes, Inc.
Insuring Kansas City area builders for more than 50 years
2011 Aspen Homes Fasone & Partners ParkView Homes, LLC Pfeifer Homes, Inc.
2003 Kansas City NARI Olympus Custom Homes
Click this logo at
www.kchba.org
to login to your account
2005 Roeser Homes, LLC 2006 Stoneworth Building Products 2007 Harrington Brothers Inc. Heating and Cooling 2010 LG Homes, Inc. Woodbridge Homes, Inc.
20
Online Resources for HBA Members! Update Your Membership
Call today 816-942-8800, or email gina@kchba.org or dawn@kchba.org
share the value of membership and meet our new friends. Contact Tricia (tricia@kchba.org) to RSVP. July 2017 | Volume 23, No. 7 | www.kchba.org
Stop by the HBA on August 10 for Happy Hour Help welcome new members to the HBA on August 10 at 4 pm as we host our quarterly new member orientation. All members are invited to join in to share the value of membership and meet our new friends. Contact Tricia (tricia@kchba.org) to let us know you’ll be here for happy hour.
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www.kchba.org | Volume 23, No. 7 | July 2017
New Members Anything is Possible Contracting, Inc. Louis Aubrey 110 E. 20th Suite 110 Eudora, KS 66025 (785) 615-9114 Augustine Services, Inc. Chris Augustine 9280 Flint Overland Park, KS 66214 (913) 362-4399 www.augustineservices.com CMP Constuction Chris Van Horn 1796 E Kansas City Road Olathe, KS 66061 (913) 839-9234 www.cmpremodel.com Kansas Builders Insurance Group Mike Sullivan 2101 SW 36th St. Topeka, KS 66611 (785) 266-4540 www.kbig.biz Kohler Signature Store Ann Kivett 5025 W. 119th St. Overland Park, KS 66209 (913) 335-6110 kohlersignaturestoreoverlandpark.com Origin Bank Home Lending Jerry Kolich 11460 Tomahawk Creek Pkwy, Ste. 320 Leawood, KS 66211 (913) 249-3060 www.origin.bank
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Reed Fuller Construction, Inc. Reed Fuller 17201 Canterbury Dr Stilwell, KS 66085 (913) 963-1772 www.reedfullerconstruction.com
SaveWithNaturalGas.com/MGE/Builder 22
Sweeney Construction, Inc. Vince Cline 6608 Barth Rd. Shawnee, KS 66226 (816) 401-6619
Affiliates Origin Bank Home Lending Matt Devine Ryan Plattner Jake Belcher 11460 Tomahawk Creek Pkwy, Ste. 320 Leawood, KS 66211 (913) 249-3060 www.origin.bank ReeceNichols Marjorie E. Levell 11601 Granada Leawood, KS 66211 www.reecenichols.com
HBA Staff Josh Clark Executive Vice President jclark@kchba.org 816-733-2216 Marcia Jurgens Vice President of Administration marcia@kchba.org, 816-733-2215 Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219 Dawn Allen Director of Member Services & Events dawn@kchba.org, 816-733-2239 Kelcee Schlotzhauer Permit and Show Sales Coordinator kelcee@kchba.org, 816-733-2246 Katie Walkley Government Affairs Manager katie@kchba.org, 816-733-2241 Kari English Communications Director kari@kchba.org, 816-733-2213 Tricia French Membership & Events Support tricia@kchba.org, 816-733-2217 Courtney Reyes Government Affairs Manager courtney@kchba.org, 816-733-2214
July 2017 | Volume 23, No. 7 | www.kchba.org
Home Building Activity Remains Strong Local home builders continued their brisk pace of single-family construction in May, with 504 single-family permits issued. Year-to-date permit activity in the metro area rose 14 percent, with permits recorded for the first five months of the year totaling 2,560, according to the Home Builders Association of Greater Kansas City’s monthly Residential Building Permit Statistics report. Multi-family builders permitted 578 units during May, bring the year’s total to 1,043. As the Home Builders Association of Greater Kansas City and its members celebrated National Homeownership Month in June, a recent survey indicates that more than two-thirds of Americans believe that owning a home is an essential part of the American Dream. “Americans continue to place a high priority on homeownership and work hard to achieve this goal for their families,” said NAHB Chairman Granger MacDonald. “Our members are committed to providing high-quality homes that meet the diverse needs of Americans across the country.” The most recent permit report shows growth in the metro area and reflects a strengthening housing sector that helps create personal wealth while boosting local economies. The Kansas City area is on track to build more than 6,000 homes during 2017, which will support approximately 20,000 jobs. Kansas City, Missouri continues as the highest permitting city in the area with 458 issued to date. Lee’s Summit has increased to 228, compared to 132 at this point in 2016. Kansas City, Kansas/Wyandotte County has jumped from 87 permits in the first five months of 2016 to 208 during 2017.
Residential Building Permit Statistics
May 2017
Residential Building Permit Statistics MAY 2017 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 MultiS-F M-F Total Family Family Total Units Units Units % Units^ Units Units YTD YTD YTD 0 3 4 0 0 0 0 0 2 4 7 15 1 36
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 3 4 0 0 0 0 0 2 4 7 15 1 36
0 52 30 2 0 2 0 4 13 52 22 87 6 270
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 52 30 2 0 2 0 4 13 52 22 87 6 270
6 6 0 53 11 0 9 1 0 46 132
0 0 0 0 0 0 0 0 0 0 0
6 6 0 53 11 0 9 1 0 46 132
30 12 2 345 49 0 30 1 0 79 548
0 0 0 0 0 0 0 0 0 0 0
30 12 2 345 49 0 30 1 0 79 548
11 0 2 2 2 13 6 16 0 25 3 0 0 80
0 0 0 0 0 0 0 361 0 89 0 0 0 450
11 0 2 2 2 13 6 377 0 114 3 0 0 530
67 0 30 2 8 41 24 35 0 215 22 0 0 444
0 0 0 0 0 0 0 361 0 178 0 0 0 539
67 0 30 2 8 41 24 396 0 393 22 0 0 983
0 19 9 0 21 4 0 0 53
0 0 0 0 0 0 0 0 0
0 19 9 0 21 4 0 0 53
0 78 24 0 100 21 7 0 230
0 0 0 0 0 0 0 0 0
0 78 24 0 100 21 7 0 230
3 0 0 3 7 4 23 1 0 57 32 3 13 4 0 150
120 0 0 0 0 0 0 0 0 8 0 0 0 0 0 128
123 0 0 3 7 4 23 1 0 65 32 3 13 4 0 278
9 0 2 28 27 21 107 1 4 216 175 13 60 38 0 701
120 0 0 0 0 0 67 0 0 30 287 0 0 0 0 504
129 0 2 28 27 21 174 1 4 246 462 13 60 38 0 1205
23
Single MultiS-F M-F Total Family Family Total Units Units Units % Units^ Units Units YTD YTD YTD LEAVENWORTH COUNTY Basehor 6 0 33 0 6 33 Lansing 0 0 5 0 0 5 Leavenworth County 6 0 36 0 6 36 Leavenworth 2 0 7 0 2 7 Tonganoxie 3 0 25 0 3 25 17 0 17 106 0 106 WYANDOTTE COUNTY Bonner Springs 2 Edwardsville 0 KCKS/Wyandotte Co 21 23 MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill Totals
0 0 0 0
2 0 21 23
4 0 208 212
0 0 0 0
4 0 208 212
1 6 0 0 6 13
0 0 0 0 0 0
1 6 0 0 6 13
13 20 0 5 11 49
0 0 0 0 0 0
13 20 0 5 11 49
504
578
1082
2560
1043
3603
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
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
2014 287 216 362 439 385 364 375 352 383 468 312 328
2015 240 260 393 437 395 438 399 425 462 459 360 432
2016 274 408 542 523 503 578 494 530 418 462 412 345
2017 453 476 567 560 504
Annual Total
2,471
2,301
3,299
4,090
4,271
4,700
5,489
2,560
Comparison of Permits By Units Issued Year to Date
2010 - 2017 2010 2011 2012 2013 2014 2015 2016 2017
S-F Units 975 831 1211 1613 1689 1724 2250 2560
M-F Units 55 272 121 1450 1604 1269 1555 1043
Total Units 1030 1103 1332 3063 3293 2993 3805 3603
^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units. # 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 2017 Home Builders Assoc of Greater Kansas City. All rights reserved. Rev2 6.23.17
www.kchba.org | Volume 23, No. 7 | July 2017
A Look Back: KCHBA and NAHB Partnership As the Home Builders Association of Greater Kansas City celebrates its 80th anniversary, the National Association of Home Builders recently recognized its 75th year with a festive gala held at the June board of directors meeting in Washington, DC. Just as the KCHBA began as a division of the local Real Estate Board, the NAHB’s earliest formation began as the Home Builders and Subdividers Division of the National Real Estate Board (NAREB). This division was formed in 1923, with Kansas Citian J.C. Nichols as a member. The group changed its name to Land Developers and Home Builders Division of the NAREB in 1933 and was chaired by John C. Taylor of Kansas City in 1935. Another name change occurred in 1941, as the builders’ division became known as the Home Builders Institute of America. The HBI was granted autonomy from
alternates, 8 senior life directors, 6 voting life directors and 11 non-voting life directors. National directors devote their time and energy to both Kansas City’s activities and to national committees and board meetings.
the NAREB in 1942 and changed the name to National Association of Home Builders of the United States. The KCHBA affiliated with the NAHB on October 31, 1945. The KCHBA’s first Executive Secretary, Jim Hutton, was hired in 1947. One of his first duties was to attend the national convention in Chicago—partially to learn how other HBA’s were raising funds to operate the association.
Kansas City HBA members have been constant attendees at the national conventions (now known as IBS). In past years the group would travel together – for instance, a special train car took members to the 1961 convention in Chicago. For many years, members of KCHBA’s Convention Committee would personally travel to convention sites to choose the hospitality suite location, make arrangements for room and rental car reservations and choose a travel agent for booking flights.
Our local association has recognized the value of the national association from the very beginning with the national directors involved on both levels of governance. The 1948 national directors were John C. Taylor and Ralph Wells, with Charles B. Neal as alternate. The number of national directors allocated to each local association is based on number of builder members. Currently, the KCHBA has 5 national directors, 5
In 2012, Tom Woods was elected as the 2012 third vice chairman of the NAHB and served as chairman in 2015. Tom’s service on the leadership ladder
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Boarding the train to Chicago of NAHB gave Kansas City members the opportunity to be active in many aspects of the national association. It also gave members an up-close view of the time and effort involved in leading the NAHB. Membership in the national federation offers benefits to both individual members and to the KCHBA organization itself. We are proud to have such a long-standing and close connection to the National Association of Home Builders.