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

June 2016

Spring Parade Lives Up to Expectations Join the HBA at the K – page 5

Kansas City area homebuilders had high hopes for the 2016 Spring Parade of Homes, and based on early participant feedback, traffic and homebuyer activity during the parade met or exceeded expectations. According to an HBA online survey of

rade during the three-week long event, with 17 percent of survey respondents saying their entries sold. “We had a great Parade with record numbers of people (and) sold at least three homes,” said Don Julian of Don Julian Builders. “In my opinion, the Parade of

homebuyers continue to visit the homes after the official ending date. As Chris Ragland noted: “Woodneath Farms subdivision had eight homes in the parade--a true model row. Traffic was amazing this week (week of May 16) for not being a parade week. But it is the power of the parade that kept this traffic and sales up.”

Stay up to date with OSHA – page 14

builders with 2016 Spring Parade entries, 72 percent of respondents reported “good” or “excellent” attendance, with another 23 percent reporting that attendance was “adequate.”

Advance your career with NAHB designations. See page 9 for class information.

Terri Marks of Providence Homes called the first weekend of the Parade wildly successful: “There was crazy traffic. Saturday was a zoo. Sunday, we took a tally (with) 65 groups through that day. I got two offers on Sunday, with a third buyer disappointed they missed out.” From the 43 responses received by the BBN deadline, builders reported selling at least seven homes entered in the Pa-

Homes is the best dollar for dollar advertising a builder can get.” Other survey highlights: •72% indicated they obtained “good leads” as a result of Parade participation. •79% said advertising and promotion of the Spring Parade was “good” or “excellent.” •69% said the Parade provides better “people contact” than other methods of advertising. Not only does the Parade of Homes draw traffic to parade entries during the sixteen days of the event, potential

With the Spring 2016 Parade wrapped up, it is now time to prepare for the Fall Parade, September 24 – October 9. Buyers are often eager to get into a new home before the holiday season and the Fall Parade is the perfect time to present a builders’ available properties. Fall Parade entry deadlines are: Early deadline June 17 Regular deadline June 30 Late deadline July 8 Entry forms can be obtained from the website (kchba.org) or contact Gina (gina@kchba.org) for more information.

www.kchba.org | Volume 22, No. 6 | June 2016

Missouri Legislative Wrap-Up

June Calendar

The Missouri Legislature adjourned Friday, May 13 after a fairly busy session. It has been defined by what did not pass as much as by the bills that actually reached the Governor’s desk. Prominent initiatives that failed this year included the gas tax – the proceeds of which would help fund transportation needs; paycheck protection – a bill that would make changes to how union members pay dues; an omnibus energy bill – which pushed to reform state energy policies for electrical corporations and how rates are set; substantive ethics reform – such as a ban on lobbyist gifts; and various social measures. Many of these issues are expected to reappear next session.

June 7 Learn from the Experts Seminar June 8 Golf Tournament June 16 Lunch & Learn: Moisture Management June 21 Board of Directors Meeting June 22 Kansas Area Council Meeting June 24 Phil Yancey Tailgate & Builder Appreciation Night at the K For more information or to register for any event, go to www.kchba.org or call 816-942-8800

However, legislators successfully passed the state budget this year with little controversy and it has been signed by the Governor. Other legislation that reached the finish line included Voter ID, expansive gun legislation, tort reform, and various low-level tax exemptions.

session, a bill was introduced that would have mandated statewide licensing for roofers, but it did not move forward past the committee stage. The most significant achievement for Missouri home builders occurred on the second to last day of session, when legislators eliminated the sunset on fire sprinklers. Missouri Statute already prohibits the state and municipalities from mandating fire sprinklers in new home construction, but the provision was set to expire in 2024. HBA of Missouri members decided to look for an opportunity to eliminate that sunset. In an effort coordinated by the Springfield HBA and lobbyist Jewell Patek, it was added onto an omnibus public safety bill that passed with strong votes in the House and Senate. Barring any veto, the sunset on fire sprinklers is now permanently removed and the state can never require builders to install fire sprinklers in new homes.

Overall, the legislature did not take up many issues that would directly affect the home building industry. Early in National Association of Home Builders

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June 2016 | Volume 22, No. 6 | www.kchba.org

Kansas Legislative Wrap-Up The Kansas Legislature adjourned at 3:28 am on Monday, May 2 after its shortest session in 42 years. The most pressing issues this year were addressing the budget shortfall and handling fluctuating revenue reports. While lawmakers did not consider or pass much legislation that directly affects the home building industry, it is important for all industry professionals to remain aware of what happens in Topeka.

Property tax legislation also received a great deal of attention this year. Lawmakers passed a bill moving up the effective date from January 2018 to January 2017 for the tax lid on cities and counties. After that time, they may only raise property taxes higher than the rate of inflation by taking it to a public vote. The bill also modified the current exemption provisions.

Budget

The legislature unanimously passed a bill allowing workers compensation claims to be filed electronically and eliminating the requirement for the Department of Labor to maintain a licensed physician on staff.

At the end of April, the Consensus Revenue Estimating Group (CREG) reported a $228 million revenue shortfall for the remainder of this and the next fiscal year. The legislature’s proposed solution includes: Transferring $185 million from the state highway fund to the general fund. KDOT estimates the sweep will delay 25 planned projects through 2019 at a cost of $553 million. Delaying payment of $99 million from the state pension plan – KPERS – to be repaid at 8% interest by June 2018. Reduced funding for higher education and removing last year’s tuition cap on state universities. Authorizing Governor Brownback to make as much as $80 million in cuts, or 3%-5% across the board to cut all state agencies. The only exemption is K-12 education funding. Taxes There was a strong effort this year to repeal the non-wage income tax exemption for LLC’s, S corporations, and sole proprietorships that passed in 2012. However, the legislation failed in the House with a vote of 45-74, meaning the tax exemption will remain.

Workers Compensation

Going Forward Legislators may have to return to the Topeka for a special summer session depending on the outcome of the Supreme Court’s equity decision on the new school finance formula. Regardless, this summer will also be election season. All seats in the House and Senate are up this year – candidates have until June 1 to file for election.

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Kansas Area Council Summer Meeting Mark your calendar for June 22 and plan to attend the Kansas Area Council meeting at Brookridge Golf Club. Lunch will begin at 11:30, followed by speakers who will be announced at a later date. Contact Tricia (tricia@kchba.org) to make a reservation.

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www.kchba.org | Volume 22, No. 6 | June 2016

To View the Full Calendar of Events, Click Here. HBA staff is interested in hearing from members who have used the Add to Calendar feature or Add to Microsoft Outlook on events listed on the kchba.org website. These features are an easy way to add the event, date, time and place to your personal calendar.

Build for Comfort. Build with Natural Gas. Natural gas is efficient, affordable, reliable and proven to sell homes faster. With MGE's new rebate programs, it's easier than ever for builders to upgrade to high efficiency natural gas appliances.

We need feedback from members who have experimented with the process – does it work with your particular calendar? If so, what calendar program do you use? Does it work on your phone? If not, what kind of phone do you use? Does it work only if you’ve signed into your Microsoft ac-

Get paid to make the upgrade. SaveWithNaturalGas.com/MGE/Builder

ARE YOU READY TO TAKE YOUR BUSINESS TO THE NEXT LEVEL?

Lunch, Learn & Earn Credit June’s lunch, learn and earn topic is moisture management. The class will be held June 16, beginning at 8:30 am and concluding with lunch at 12:30. Matt Belcher (Director of the High Performance Buildings Research Center which is part of the Midwest Energy Efficiency Research Consortium at MIZZOU) will present proven building science techniques to help you improve cycle time, reduce callbacks, market indoor air quality benefits, minimize warranty and liability claims, and develop better marketing messages. Thanks to the generosity of our education sponsor, Wells Fargo Home Mortgage, and this topic’s underwriter, Laclede Gas, the 4 hours of JOCO Code Credit and lunch are free to members. To register contact 816-9428800 or Tricia@kchba.org.

We have the communication & marketing solutions to help ONLINE • MAGAZINE • NEWSPAPER • EVENTS

For information about promoting your business or new home community directly to new home buyers in your geographic area contact:

Jared Webb at 816-234-4734 or jwebb@kcstar.com 4

count? What happens if you don’t have a Microsoft account? The HBA is in the process of updating the website and

the events calendar is an important part of our information. Please share your thoughts regarding the calendar with Marcia (marcia@kchba.org).

Local Builders Make the Lists Kansas City’s home building industry is unique in that there are no national builders operating in the area. That doesn’t mean our builders don’t get national recognition however. Professional Builder recently released its list of 2016 Housing Giants which includes five KCHBA members: Summit Custom Homes (#136), James Engle Custom Homes (#185), Rodrock Homes (#186), Don Julian Builders/New Mark Homes (#224) and Prieb Homes (#240). In addition to this list, Summit Custom Homes was listed at number 129 in Builder Magazine’s Next 100 list and they were named a Champion of Business by the Kansas City Business Journal. Congratulations to all these members on their success!

June 2016 | Volume 22, No. 6 | www.kchba.org

Click this logo at

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to login to your account

Online Resources for HBA Members! 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

HBA members and guests will root for the Royals on June 24 at HBA’s Builder Appreciation Night at the K. The evening will begin with a tailgate in honor of Phil Yancey in Lot N, spaces B:2 – 4. Sponsored by IKO, the Wiener Wagon will provide a variety of artisan dogs to choose from, along with chips and a drink. If you’ve ordered Royals tickets, they may be picked up at the HBA beginning June 1st. At press time tickets were still available and builders are encouraged to contact the HBA for special pricing. We feel it is a good omen for the HBA to attend a Royals game in June – look how last season turned out!

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www.kchba.org | Volume 22, No. 6 | June 2016

Safeguard Your Reputation, Avoid Online Embarrassment It takes several years to build a strong reputation, but just seconds to crumble.

One free, easy call gets your utility lines marked AND helps protect you from injury and expense. Know what’s below. Always call 811 before you dig. Visit www.kansasgasservice.com for more information.

Perfect Balance

Though the Internet opens countless growth opportunities for businesses, it also provides an audience to anyone with an opinion. Remodelers and home builders who neglect to continually monitor their online reputation are putting their business at serious risk.

time and set up a Google Alert to receive email notifications whenever your company name is mentioned online.

Google Consumer Surveys found that when making a big purchase, more than 67% of consumers say their decisions are influenced by online reviews. If they discover several negative reviews about a company, its products or services, they’re likely to take their business elsewhere.

Then, determine which sites your customers are most likely to use (some of the most common include Angie’s List, Houzz and Yelp) and regularly set aside time to check them at least once a week. The Better Business Bureau is another great resource that allows you to read and respond to consumer reviews.

Reputation monitoring firms like ReviewTrackers, ReputationDefender and Status Labs are growing rapidly. But investing in their services won’t likely produce a big enough return for smaller businesses that can typically get the job done themselves.

Never fight fire with fire

It’s much easier to keep tabs on what people are saying about you online when you know how and where to look. And by approaching each issue with calm professionalism, you can turn even a nasty review into a potential lead generator.

Trying to stand out from the competition doesn’t have to drive you nuts. Deckorators helps set you apart with decking from the same source you’ve relied on for railings, balusters, post caps and more. Plus, the Deckorators composite decking lineup is the only one backed by a 25-year Removal & Replacement warranty. Visit deckorators.com for more information.

Where to Start Google yourself. In other words, perform an online search for your business to see what results come up. This should be done regularly, so save yourself some

mccraylumber.com

Getting into an argument online with a reviewer rarely ends well, even if the complaint is totally inaccurate. Keep in mind the reviewer has nothing to lose, but your business could experience significant, long-term consequences. However, no response can be just as damaging as an argumentative response. Rather than immediately going on the defensive, consider posting a concise apology or an acknowledgement of the customer’s concerns and your willingness to work toward a resolution. Potential clients who see your composed response will be more assured of your professionalism and commitment to customer service. Continued on page 7

June 2016 | Volume 22, No. 6 | www.kchba.org

PROMISE Bank of Blue Valley promises a partner, not just a bank.

On-site Learning for the Art of Framing The HBA presented eight hours of code credit with instructor Dave Utterback on May 19. The class first gathered in a finished home in the Stone Canyon subdivision for classroom instruction. Participants then moved to a house under construction for a detailed look at framing in progress.

COMMUNITY PHILANTHROPHY ENTREPRENEURSHIP

Special thanks go to Wells Fargo Home Mortgage, 2016 Education Sponsor, to Dreams and Design Building for hosting the seminar classroom and to Robert Foushee Homes for providing the inprocess home.

See how we can support your growing business today! www.bankbv.com | 913.338.1000

Safeguard Your Reputation Continued from page 6 Make it more personal Do not think the conversation is confined to websites, text messages or emails. Always follow up your online response with a more personal conversation either face to face or by phone. Smaller companies – especially in the remodeling and home building industries – can more easily identify and directly contact their dissatisfied clients, than can larger companies that serve thousands of consumers. Amplify the positive reviews Not all of your reviews will be negative (hopefully), but unfortunately, the positive reviews get far less attention. That’s why it’s critical to emphasize each pos-

COMPANIES, INC

itive review even if it means simply posting “Thank you!” as your response. It shows you’re in tune with your clients and appreciate their feedback. Share positive reviews as often as possible on social media, your website and other marketing materials.

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NAHB Now, 4/5/16

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www.kchba.org | Volume 22, No. 6 | June 2016

A Professional Concrete Flatwork Company

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This month’s pro tip is:

2015 National Green Building Standard Available Now for Free Green builders, remodelers, developers and verifiers have all heard the news: The ICC/ASHRAE 700-2015 National Green Building Standard™ has been approved by the American National Standards Institute. But maybe you haven’t heard the equally great news: The standard can be downloaded as a PDF from the NAHB BuilderBooks site. And it’s absolutely free.

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

The standard is a green building rating system that assigns points for green and sustainable building practices in the areas of water, resource and energy efficiency, indoor environmental quality, lot and site development and home owner education. What’s new in the 2015 edition? Improvements and more stringent rating levels in the energy efficiency section, changes that reflect new storm water management practices, an expanded universal design section and more. Visit builderbooks.com/ngbs to download your free e-book.

Partners with HBA since 2010 Fasonepartners.com 8

June 2016 | Volume 22, No. 6 | www.kchba.org

Summer Classes for NAHB Designations The Home Builders Association of Greater Kansas City will offer industry professionals the opportunity to earn NAHB designations with a series of classes during the upcoming months. Holding an NAHB designation shows your commitment to improving your craft and the value you place on professionalism in the industry. Once you’ve earned your “letters,” make the most of them to advance your career and business prospects. NAHB has resources to help not only promote yourself and your business locally, but to also educate consumers on the importance of using a professional who has taken the time and effort to get his or her professional designation.

sales in mind, this course provides an overview of the process of planning developments and individual homes.

This summer, the KCHBA will offer classes leading to the following designations:

Certified Aging in Place (CAPS I and CAPS II) – September 8 – 9

Certified New Home Sales Professional (CSP) – July 13 – 15

It also reviews types and methods of construction, expanding your knowledge of the building process to enhance your future effectiveness in your sales career. Essential Closing Strategies (Applies to MCSP) Build your sales results with proven closing strategies. Learn how to minimize common objections and win the confidence of prospective customers. This course provides participants with the opportunity to practice, drill, and rehearse the key words and phrases appropriate in a range of sales situations.

CAPS I: Marketing & Communication Strategies for Aging & Accessibility* (Applies to MCSP & CAPS)

Master the craft of successful selling. This professional-level course is designed for specialists in new home sales. You will gain a broad understanding of the home building business, discuss consumer psychology and learn the advanced techniques used by real estate veterans for greeting, closing and overcoming objections.

Identify opportunities and develop the skills to interact with 50+ customers to help grow your business dramatically. Learn best practices in communicating and interacting with this exciting and evolving population.

Master Certified New Home Sales Professional (MCSP) – August 4 – 5

Discover the guidelines and requirements of accessibility, the importance of doing an assessment with input from occupational and physical therapists as well as qualified health care professionals. In addition, discuss the significance of good design when

Here is the opportunity to take two classes required for this advanced designation: House Construction as a Selling Tool (Applies to MCSP) The construction detail of a home is a powerful selling tool. Designed with

CAPS II: Design/Build Solutions for Aging & Accessibility* (Applies to MCSP & CAPS)

Continued on page 13

www.kchba.org | Volume 22, No. 6 | June 2016

Member Anniversaries

STYLE THAT

WORKS

LENEXA 9301 ROSEHILL ROAD (913) 752–5660

N. KANSAS CITY 101 NE 91ST STREET (816) 468–8344

FERGUSON.COM/SHOWROOMS

KCFDA .COM

Step Up to Higher Profits.

1952

2009

Ferguson Enterprises, Inc.

H & H Steel, Inc.

Pacific Mutual Door & Window

RubinBrown, LLP

1974

2010

Dulaney Construction Company

Legacy Flooring Contractors

1978

2012

Tom French Construction, Inc.

D Three Framing, Inc.

1984

Dusty Dahmer Construction

O’Donnell & Sons Construction Company

Northcraft Flooring & Granite Design, LLC

1985

Sbisa Homes, Inc.

MarKirk Construction, Inc.

2013

1992

Bill McCoy Real Estate Co., LLC

Ashner Construction Company, Inc.

Clayco Electric

1998

Dan Moore Construction

Glen Mock Homes, LLC

Douthit Frets Rouse Gentil & Rhodes

1999

Gaumats International, LLC

Stewart Title of Kansas City

2014

2001

Honors Realty

Atronic Alarms, Inc.

Miami County Economic Development

First American Title

Missouri Propane Education and Research Council

2002 KGH Building Group, LLC 2003 Apex Engineers, Inc. 2004 C & M Builders, Inc. Haynes Equipment Co., Inc. NBKC Bank Shaw Construction, Inc. 2005

Construction Plus Financing

Lumber One, LLC Valley View State Bank

2006 K & E Flatwork, LLC Tabernacle Homes, LLC 2007 CrossFirst Bank Jim Larson Homes, LLC 2008 Park Ridge Homes, LLC

(816) 245-4160 • www.FFBKC.com/builders 10

Prime Lending Rocktops Granite & Stone Fabrication, LLC Rodrock and Associates, Realtors, LLC Royal Seamless Gutter & Siding, Inc. US Bank 2015 AAA Lifetime Exterior & Remodeling Bricks N Stones, LLC Collins/TruWood Siding & Trim Cosentino North America Crookham Construction, LLC Graham Homes Green Grass Investments, Inc. Midwest Energy Rating & Auditing Owen Homes, LLC Robert Garver Builder, Inc. Showcase Publishing, Inc. Sunrise Construction, Inc. TDS Construction

June 2016 | Volume 22, No. 6 | www.kchba.org

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

Kelcee Schlotzhauer Permit and Show Sales Coordinator kelcee@kchba.org, 816-942-8800

Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219

Dawn Allen Director of Member Services and Events dawn@kchba.org, 816-942-8800

Marcia Jurgens Director of Administration marcia@kchba.org, 816-733-2215

Tricia French Project Manager tricia@kchba.org, 816-733-2241

Katie Walkley Government Affairs Manager katie@kchba.org, 816-733-2241

Unlimited Possibilities.

Custom colors. Unique shapes. Dynamic sizes. Smarter Windows for Smarter Homes ® VeriLock integrated security sensors Andersen® E-Series windows and patio doors featuring VeriLock® sensors can now be part of today’s connected homes. These patented, wireless sensors are the only sensors built directly into your windows and doors. Plus, they not only tell you if a window or patio door is open, but also if it’s unlocked.* No other sensors can do that.

Kaitlyn Maloney Communications Assistant kaitlyn@kchba.org, 816-733-2237

andersenwindows.com/verilock *When properly configured and maintained with a professionally installed security system compatible with Honeywell® transmitters and/or self-monitoring system. See your dealer for more information. Honeywell” is a registered trademark of Honeywell International, Inc. “Andersen” and all other marks where denoted are trademarks of Andersen Corporation and its subsidiary. ©2016 Andersen Corporation. All rights reserved. MS1601_0102

The Home Builders Association of Greater Kansas City

Belton 617 N. Scott, Belton, MO (816) 331-2211

Thanks the 2016 Sponsors AFFINITY SPONSOR

Excelsior Springs 24805 NE 69 Hwy, Excelsior Springs, MO (816) 628-6025

Stewart Specialty Insurance Services PLATINUM SPONSORS

owenlumber.com

St. Louis – Kansas City Carpenters’ Regional Council Kansas City Star Media Company Wells Fargo Home Mortgage

Lee’s Summit 312 SE Main, Lee’s Summit, MO (816) 524-3522

GOLD SPONSORS

Bank of Blue Valley Bovard Insurance Group Capitol Federal Fasone & Partners Ferguson Enterprises First Federal Bank Kansas Gas Service K&E Flatwork Kenny’s Tile Laclede Gas McCray Lumber

Northcraft Flooring & Granite Owen Lumber Phelps Engineering ProBuild Rew Materials Star Companies, Inc Stewart Title Sun Lumber United Heating, Cooling & Plumbing

Construction-to-Perm Financing with the most trusted name in lending. Building True Blue® relationships for over 120 years.

SILVER SPONSORS

A+ Insulation Henges Insulation & Fireplace

Pacific Mutual Door Shamrock Cabinet

BRONZE SPONSORS

84 Lumber Building Solutions Commerce Bank Complete Home Concepts CrossFirst Bank

First American Title Hermes Landscaping Kansas City Title Locks & Pulls

North American Savings Bank Pella Products of Kansas City ProSource 11

www.kchba.org | Volume 22, No. 6 | June 2016

Small Homes that Live Big Stumped on what to do about buyers who are looking for a home that comes with a tiny price but a McMansion look and feel? Enter stage right: the jewel box home. Ranging between 650-2,500 square feet, these are a win for buyers who want something custom but affordable, but they’re also an ideal product for builders looking to diversify and sell a higher-end product across multiple demographics.

PACIFIC MUTUAL

So what is a jewel box home? It’s just a smaller-than-average single-family home — not a starter home or a tiny house — built with high-quality materials, exquisite detailing and custom finishes with an emphasis on tailoring the home to the owners’ way of life for maximum elegance, harmony and function.

DOOR AND WINDOW High-quality millwork lives here

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“Just because [a home buyer] is downsizing doesn’t mean that they want less,” said Kay Green, president of Kay Green Design Inc. “They simply want the same great amenities in a smaller space.”

1 9 1 2

Jewel box homes typically appeal to newlyweds, single professionals, empty nesters, retirees, Millennials and just about anyone with a “less-is-more” mentality, Green said. Space planning in jewel box homes is essential. Green said it’s important to design in a way that maximizes space, leaves no area without a purpose and creates personal escapes. She offered open concept showers as an example. Use of bright, reflective finishes, like brushed chrome, pocket and barn doors, decorative fixtures, dramatic lighting, floating shelves, white walls, lots of windows and continuous flooring throughout the home also help maximize space and function, she said. As the recession trudged on, Tony Weremeichik, a home builder and principal of 12

Canin Associates in Orlando, saw jewel box homes as a critical architecture and land-planning solution. He knew there would be continued demand for smaller houses, but wasn’t exactly sure who to target and what to target them with. “With a move toward smaller houses, you ask, ‘How do you do that right?’,” he said. “How do you plan out a community of smaller homes?” What he found upon doing market research, was surprising. Women make over 90% of all home-buying decisions, and between 2008-2010, almost 20% of home buyers were single women, he said. Once his target market became apparent, he started making his home builds “women-centric” — averaging between 1,800-2,000 square feet with three to four bedrooms, and custom-designed for women looking for an investment in a single-family detached home. Meaningful space and quality materials are what keep his customers happy, he said. “It’s not about creating a small floor plan. It’s about looking at the spaces first: considering how it will be furnished, whether it’s comfortable, what the flow will be like,” he said. “It’s important to have quality spaces, designed well.” For example, blurring the lines between indoor and outdoor spaces with sliding doors helps to maximize space and give the buyer the feeling of a personal oasis at home. Islands with seating, domestic suites (mud rooms, pocket offices, vac/ broom closet), the space beneath the stairs, diverse cabinetry and built-ins are also critical in making jewel box homes spacious and functional, he added. Excerpted from NAHBNow, 4/7/16

June 2016 | Volume 22, No. 6 | www.kchba.org

New Members Breer Law Firm, LLC Kevin Breer 4800 Rainbow Blvd #200 Westwood, KS 66205 (913) 815-6898 www.breerlawfirm.com Elite Fence & Deck, Inc. Kevin Lint 1210 SW Market St. Lee’s Summit, MO 64081 (816) 246-1850 www.elitefenceanddeck.net KOENIG Building + Restoration, LLC Scott Koenigsdorf 5438 Norwood St. Fairway, KS 66205 (816) 457-9445 www.koenigbuilding.com Masonite Jake Wilmes 201 N. Franklin St. #300 Tampa, FL 33602 (816) 457-0426 www.masonite.com Ripley Associates - Remax Elite Angie Ripley 4243 NE Lakewood Way Lee’s Summit, MO 64064 (816) 373-8400 www.360lifestyleproperties.com Thermal King Windows Don Fowler 14368 W 96th Terr Lenexa, KS 66215 (913) 451-2300 www.thermalkingwindows.com Wulff Building + Additions, LLC Kirk Wulff 8837 Linden Dr. Prairie Village, KS 66207 (913) 226-0595 www.wulffbuilding.com

Affiliates Andersen Windows Ted Reyes 100 Fourth Ave. N. Bayport, MN 55003 (913) 238-4082 www.andersenwindows.com Darol Rodrock Homes Tom Langhofer Phillip Sanders 12647 Hemlock Overland Park, KS 66213 (913) 681-5111 www.darolrodrockhomes.com

Henges Insulation and Fireplaces Brenda Corey Kevin Girtz 15640 S Keeler Olathe, KS 66062-3516 (913) 764-4600 www.hengesinsulation.com

Wells Fargo Home Mortgage Joan Emas 7500 College Blvd., 350 Overland Park, KS 66212 (913) 234-7708 www.wfhm.com

McCray Lumber and Millwork Bob Edinger Steve Haynes 207 South 9th St Edwardsville, KS 66111 (913) 422-1300 www.mccraylumber.com

Summer Classes

Sprint Lumber, Inc. Joseph Reyes 6024 NE US Hwy 169 St. Joseph, MO 64505 (816) 341-6338 www.sprintlumber.com

First American Title Kenna Arnold 7200 College Blvd Overland Park, KS 66210 (913) 981-0605 www.firstam.com

BuildingBusinessNews

Continued from page 9 making modifications. *To earn CAPS Designation, “Business Management For Building Professionals” required Contact Tricia (tricia@kchba.org) or phone 816-942-8800 to register for these valuable opportunities to increase your knowledge of the industry.

LOVE WHAT YOU BUILD.

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

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

2016 Executive Committee Home Builders Association of Greater Kansas City

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

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www.kchba.org | Volume 22, No. 6 | June 2016

OSHA Announces New Recordkeeping Rule Regulations The Occupational Safety and Health Administration (OSHA) announced on May 11 that it has issued its final electronic recordkeeping rule. The rule requires covered industries, including construction, that are employers with 250 or more employees to electronically submit their 300, 300A and 301 forms to OSHA on an annual basis. Construction industry employers that have between 20 and 249 employees are only required to electronically submit their 300A annual summary forms. OSHA will provide a secure website for the transmission of this information. The rule allows for certain redactions to be made, such as employee names, addresses, and health care provider information. Additionally, the rule includes provisions that require employers to inform each employee of their rights to report injuries and illnesses and how to do so, and inform them that they may not be retaliated against for reporting injuries or illnesses.

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

In 2014, NAHB strongly encouraged OSHA to withdraw its electronic recordkeeping proposal because the association believed it was merely a statistical means to collect data without demonstrating any evidence that it would effectively reduce workplace injuries and illnesses.

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

This final rule becomes effective on Jan. 1, 2017, except for sections 1904.35 (employee involvement) and 1904.36 (prohibition against discrimination/retaliation), which become effective on Aug. 10, 2016.

Employers must submit their OSHA 300A annual summaries by July 1, 2017. The requirements for the submission of 300 logs and 301 reports do not take effect until 2018, with those forms being due on or before July 1, 2018. Beginning in 2019, the forms will be due

by March 2 every year. It’s important to keep in mind that these new regulations do not add to or change an employer’s obligation to complete and retain injury and illness records under the Recording and Reporting Occupational Injuries and Illnesses regulation. The final rule is available in the Federal Register at https://www.federalregister.gov/articles/current. NAHB staff is currently reviewing the 72-page rule and plan to provide members with more information in the coming weeks. Contact Rob Matuga with questions or comments at 202-266-8507. NAHBNow, 5/12/16

June 2016 | Volume 22, No. 6 | www.kchba.org

Home Building Continues Growth Trend The eight county Kansas City metropolitan area recorded 519 single family building permits during April, bringing the year-to-date total to 1,720 according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. With the first four months of the year showing nearly a 30% increase from the same period in 2015, local home builders’ activity is at approximately 75% of the average recorded during the past thirty-five years. Multi-family construction continues to grow through-out the metro area, with 361 units permitted in April and a yearto-date total of 1348. “Permit activity has shown strong growth during 2016,” said Executive Vice President Sara Corless, “and traffic at the recent Parade of Homes indicated that there is a large group of serious home buyers in the Kansas City area. Builders are hoping that the spring rains don’t lead to a wet summer so that they can add to the lower than average new home inventory.” Each county in the area (with the exception of Leavenworth) is reporting growth in 2016. The northland sections of Kansas City continue to expand with KCMO in Platte County increasing by 130%. Johnson County remains the most active county and has recorded an increase of 28%. Kansas City continues to top the list of permitting cities with 393 issued throughout the three counties of the city. Olathe, Overland Park, Lee’s Summit and Lenexa round out the five busiest localities.

April 2016

Residential Building Permit Statistics

Residential Building Permit Statistics APRIL 2016 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 MultiFamily Family Total Units^ Units% Units

S-F Units YTD

M-F Units YTD

Total Units YTD

0 16 0 0 0 0 1 0 1 0 2 22 0 42

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

0 16 0 0 0 0 1 0 1 0 2 22 0 42

2 23 0 0 0 0 1 1 2 0 7 55 4 95

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

2 23 0 0 0 0 1 1 2 0 7 55 4 95

13 1 10 95 9 0 4 0 0 5 137

0 0 0 0 0 0 0 0 0 0 0

13 1 10 95 9 0 4 0 0 5 137

16 5 14 283 34 0 13 1 0 25 391

0 0 0 0 0 0 0 0 0 0 0

16 5 14 283 34 0 13 1 0 25 391

15 0 13 0 3 8 12 8 3 42 0 0 0 104

0 0 0 0 0 0 0 5 0 0 0 0 0 5

15 0 13 0 3 8 12 13 3 42 0 0 0 109

60 0 37 0 9 18 27 25 3 99 19 0 0 297

0 0 0 0 0 0 0 349 0 0 0 0 0 349

60 0 37 0 9 18 27 374 3 99 19 0 0 646

0 23 0 0 11 5 1 0 40

0 291 0 0 0 0 0 0 291

0 314 0 0 11 5 1 0 331

0 85 17 0 42 13 8 0 165

0 346 0 0 0 0 0 0 346

0 431 17 0 42 13 8 0 511

0 0 0 5 3 6 16 0 0 48 35 2 18 9 0 142

0 0 0 0 0 18 47 0 0 0 0 0 0 0 0 65

0 0 0 5 3 24 63 0 0 48 35 2 18 9 0 207

7 0 2 29 17 26 90 1 0 179 165 7 51 13 1 588

0 0 0 0 0 18 296 0 0 10 41 0 288 0 0 653

7 0 2 29 17 44 386 1 0 189 206 7 339 13 1 1241

Single MultiFamily Family Total Units^ Units% Units LEAVENWORTH COUNTY Basehor 10 0 10 Lansing 0 0 0 Leav. County 8 0 8 Leavenworth 6 0 6 Tonganoxie 0 0 0 24 0 24 WYANDOTTE COUNTY Bonner Springs 3 Edwardsville 0 KCK/Wyandotte Co 17 20 MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill Totals

S-F Units YTD

M-F Units YTD

Total Units YTD

34 1 24 8 2 69

0 0 0 0 0 0

34 1 24 8 2 69

0 0 0 0

3 0 17 20

3 0 79 82

0 0 0 0

3 0 79 82

1 7 0 2 0 10

0 0 0 0 0 0

1 7 0 2 0 10

9 21 0 2 1 33

0 0 0 0 0 0

9 21 0 2 1 33

519

361

880

1720

1348

3068

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

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

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

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

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

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

2014 287 216 362 439 385 364 375 352 383 468 312 328

2015 2016 240 265 260 399 392 537 437 519 395 438 399 425 462 459 360 432

Annual Total

2,155

2,471

2,301

3,299

4,090

4,271

4699

1720

Comparison of Permits By Units Issued Year to Date 2009 - 2016 2009 2010 2011 2012 2013 2014 2015 2016

S-F Units 540 762 601 917 1276 1304 1329 1720

M-F Units 23 55 212 121 1281 1159 999 1348

Total Units 563 817 813 1038 2557 2463 2328 3068

^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 2016 Home Builders Assoc of Greater Kansas City. All rights reserved.

www.kchba.org | Volume 22, No. 6 | June 2016

Changes to Flood Insurance Rates Effective April 18, 2016 In its summary, FEMA notes that changes will also affect mapping, mitigation efforts and program outreach. Each property will see distinct impacts because characteristics such as flood zone, year built (which affects whether it is depicted on the Flood Insurance Rate Map, or FIRM) and property type still play a role in individual premiums.

Caldwell County

Clear Creek at Kearney Smithville Dam

Clinton County

Increased suburban development in the Clear Creek watershed at Kearney may increase flood risk in this area. Flooding already impacts adjacent farmlands.

City of Holt !

City of Holt

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This dam provides flood control for downstream areas along the Little Platte River. Water supply and recreation are additional benefits.

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Other changes include new rating methodology for properties newly mapped into a Special Flood Hazard Area and the elimination of subsidies for certain pre-FIRM policies that lapse and are reinstated past 90 days. In instances where a policyholder wants to return to the NFIP program after the lapse, he or she must obtain an elevation certificate and use the full-risk rate.

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BIRMINGHAM LEVEE SYSTEM

City of North Kansas City

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City of Independence

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1030010106 Fire Prairie Creek-Missouri River

NORTH KANSAS CITY LEVEE SYSTEM

City of Kansas City Wyandotte County, Kansas Jackson County

North Kansas City Levee System City of Independence

State of Kansas State of Missouri

Many of the changes are a result of continued implementation of the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA) and the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12). Congress passed BW-12 and subsequently HFIAA to reauthorize and

Buchanan County

FEMA has indicated that the maximum individual rate increase for any individual policy is 18%, with a few exceptions. The guidance also states that average premiums – once certain fees are accounted for – will increase 9% for policies written or renewed on or after April 1. For most risk classes, the average annual premium rate increases are limited to 15%.

Flood Risk Map:Clay County, Missouri

reform the program.

rus

Several changes to the National Flood Insurance Program (NFIP) took effect on April 1, impacting a wide range of builders, developers, businesses, home owners and insurance agents operating in areas covered by the NFIP.

Miles Johnson County, Kansas

This accredited levee system provides reduced flood hazard risk for a large industrial area.

City of Kansas City

STUDY AREA LOCATOR

MAP SYMBOLOGY Base Data Political limits Project Boundary

Flood Data

Flood Risk

Rivers and Streams

Very Low

Restudy Area

Low

HUC-10 Watersheds

New SFHA

Medium

Interstates

Coastal Surge Influenced Area*

High

Major Roads State Boundary Levees and Dams

Very High

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Areas of Mitigation Interest Accredited Levees* Non-Accredited Levees* Dams* Coastal Structures*

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Stream Flow Constrictions*

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At-Risk Essential Facilities*

Past Claims Hot Spot* Key Emergency Routes Overtopped During Frequent Flooding Events*

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Individual Assistance (IA) & Public Assistance (PA) Data* Significant Land Use Changes (within the past 5 years and looking forward 5 years)*

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Areas of Significant Riverine or Coastal Erosion*

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Non-Levee Embankments*

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Other Flood Risk Areas*

1030010107

1024001207

The $25 surcharge for single-family primary residences and the $250 surcharge for all other policies, which went into effect April 1, 2015, remains unchanged.

FRM FLOOD RISK MAP CLAY COUNTY, MISSOURI

1030010104

1024001106

Areas of Mitigation Success*

erty owners, regardless of whether their premium rates are full-risk rates. To achieve this, FEMA will require NFIP insurers to report current flood zone and rate map information for all new business polices effective on or after April 1 and for all renewals effective on or after Oct. 1.

Risk Mapping, Assessment, and Planning (Risk MAP)

Clay County, Missouri

1030010103

VERSION NUMBER

1030010106

Other*

* Possible Enhanced Product

State of Missouri

1024001208

State of Kansas

For more information about data used for this non-regulatory map, please consult the Clay County, Missouri Flood Risk Database and Flood Risk Report.

2.3.2.1

RELEASE DATE

07/31/2013

This round of implementation activity occurs at the same time as regulators look ahead to the next round of program reauthorizations. Congress must pass NFIP reauthorization by Sept. 30, 2017. In January, NAHB took part in an introductory roundtable and a hearing to discuss NFIP re-authorization. Congress plans to release draft legislation by the end of 2016. NAHBNow, 3/31/16