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

October 2014

Ted Jones Provides Mid-Year Economic Outlook Board of Directors Election Page 3 2014 Inaugural Page 4 Sponsorship Benefits for 2015 Page 10

NAHB Fall Board Report Page 13

Ted Jones, Chief Economist and Senior Vice President, Stewart Title Guaranty Company, visited the HBA on September 16 to provide his analysis on the current state of the economy, job growth and housing prices, the impact of unemployment, and what to expect in the future regarding interest rates and long-term economic growth in the U.S. Jones shared data and information showing consumer confidence on the rise leading to an increase in existing home sales. Retail and food service sales are also up, as well as jobs in hospitality, suggesting Ted Jones shared economic information with a full house of HBA members that consumers are taking vacations and 5.6 to 6 percent in the next 12 months, The HBA was honored to host an interenjoying themselves more. which will not hurt housing sales as nationally recognized real estate expert Jones, however, declared that anyone long as we continue to experience job and economist. To stay on top of the waiting for the housing market to come growth. Nationally, Jones’ primary con- latest economic information, mark your back should know that it already did cerns include the U.S. debt ceiling, an calendars for the HBA’s 2015 Economic and warned that the industry is getting end to quantitative easing, energy, a rural Forecast on January 14 with NAHB’s close to “over building” in the Kansas land bubble and too much government Chief Economist, David Crowe, and City metropolitan area. In addition, we regulation. Chris Kuehl, Managing Director of should expect interest rates to be around Armada Corporate Intelligence Armada Intelligence.

Find Peace of Mind November 6 with NAHB Attorney David Crump

Safety First! See page 9 for new OSHA requirements regarding job injuries

Before you sign the dotted line, attend the Construction Contracts and Law presentation with David Crump on Thursday, November 6. David Crump is the Director of Legal Research for NAHB’s Office of the General Counsel. He administers NAHB’s Legal Research Program, and provides construction liability guidance on a diverse range of subjects from immigration enforcement to green building liability. The class will help you ensure that you are protecting yourself and your business and staying on top of the latest legal developments in residential construction.

You will also develop a deeper understanding of the basic legal concepts that impact the home building industry and learn best practices to avoid liability. The class will be customized to Kansas and Missouri law and provide an overview of the liability climate, contracts, warranties, mechanics lien law, business management, copyright law and alternative dispute resolution. The program will begin at 11:30 a.m., includes lunch, and costs $25 for members. Contact Dawn Allen (dawn@kchba.org or 816733-2239) to register. David Crump

www.kchba.org | Volume 20, No. 10 | October 2014

October Calendar Oct. 1

Fall Awards Celebration

Oct. 8

Government Affairs Committee

Oct. 12

Fall Parade of Homes Final Day

Oct. 17

Clay Shoot

Oct. 21-23

Contractor Licensing Trade Show

Fall Trade Show will offer opportunity for contractors to meet with a variety of vendors

HBA Partners with Johnson County Contractor Licensing for Fall Trade Show

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

The Home Builders Association of Greater Kansas City will partner with the Heart of America Chapter of the International Codes Council and Johnson County Contractor Licensing to present a Fall Industry Trade Show at the Contractor Licensing Education Conference, October 21 through 23. Phil Yancey, describing the expected vendors, states that featured products will include insula-

tion, exterior and interior building materials, heating and cooling, fireplaces, carbon monoxide testing, and flooring, among others. Contractor Licensing, held annually, draws over 1000 individuals to the conference each day. These attendees are highly placed decision makers representing construction contractors and subcontractors throughout the Kansas City metropolitan area.

This month’s tip is:

Electronic Permit Submittal with Kansas City, Missouri Builders are encouraged to try out the improved electronic submittal process for Kansas City, Missouri building permits. All information needed for electronic submittal process is found at kcmo.gov/planning/electronic-plan-submittal-2/. Recently this webpage was updated to provide an improved layout and more detail. Electronic document submittal can be used for express (aka ‘over-the-counter’) reviews as well as ‘logged-in’ jobs -- details are available on the webpage. Submittals can be made by email, and the system will also automatically send review results to the applicant by email. It is possible to go from application to permit without the need to visit or make a delivery to City Hall. Another benefit is that the applicant has the ability to print additional sets of City-stamped plans if needed. Greg Franzen, KCMO Building Official, would also welcome any feedback regarding the process, or suggestions for improvement. For questions regarding the electronic submittal process, please call 816-513-1500 or email planning@kcmo.org.

We proudly support the home building industry.

October 2014 | Volume 20, No. 10 | www.kchba.org

2015 Board Members to be Elected in November Ballots for the upcoming board of directors election will be mailed in late October to the primary representative of each HBA member company. Ballots must be returned to the HBA by noon, Monday, November 3rd. Each ballot is required to be signed by the voting member—any questions regarding the primary representative should be directed to HBA staff. Builder and associate members may vote for up to three builder candidates. The candidates for these board positions are: Jeff Ashner, Ashner Construction Company; Jerry Braklow, Braklow Custom Homes; and Shawn Woods, Ashlar Homes. Associate representatives will be chosen from the following: Jeff Goodwin, Complete Home Concepts; Rosemary

Vitale, ReeceNichols; Wayne Burton, Western Chandelier; Alan Gregory, Ferguson; Bryan Keller, McCray Lumber; Jerry Ratway, Weber Carpet. Both builder and associate members are eligible to vote for up to four candidates from the list. Area council representative are chosen only by builder members from each particular area. Candidates are as follows: Kansas representative--Rocky Rhodes, Allure Luxury Homes; Missouri North—Matt Ernst, Ernst Brothers Home Construction; and Missouri South--Justin Pfeifer, Pfeifer Homes. A position on the HBA Board of Directors is an investment of time and energy. The HBA thanks all those who have agreed to assume leadership of the association.

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Lunch provided fellowship and networking for HBA members

Associate Appreciation Lunch A large and hungry crowd gathered at the HBA for the annual Associate Appreciation lunch on September 11. Lunch featured hot dogs, brats, and cheesecakes made by HBA President Chris Ragland. Vice-president Mark Mather, Secretary/ Treasurer Brenner Holland and Executive Vice President Sara Corless noted the importance of associate members to the Home Builders Association. The current membership of the HBA consists of 228 builder members and 310 associate members. Great members make a great association—thank you!

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Mark Mather grills brats for Associate Appreciation Day 3

PROBUILD DOOR & MILLWORK 1227 E MARTHA TRUMAN RD E 119TH STREET, SUITE 400 GRANDVIEW, MO 64080 816.765.4080

ENGINEERED WOOD

www.kchba.org | Volume 20, No. 10 | October 2014

Plan Now for IBS

IBS 2015

The International Builders Show for 2015 will offer products, education and entertainment to the expected 125,000 attendees. NAHB will team up with the National Kitchen & Bath Association again for the second annual Design and Construction Week in Las Vegas Jan. 20-22. The week’s activities will include three other industry trade shows in addition to IBS and NKBA’s Kitchen and Bath Industry Show. IBS attendees will be invited to visit the Las Vegas Market, which features furniture and home goods; the International Surface Event, showcasing all types of flooring, stone and tile; and the International Window Coverings Expo.

#IBSVegaS

all homes

In addition to trade shows, NAHB’s Convention Education Subcommittee is developing a robust series of classes. Plans are in place for 220 speakers in 105 education sessions, including 70 new speakers. The NAHB Centrals, open only to registered IBS attendees, will continue to offer great networking opportunities for

start here

remodelers, designers, sales and marketing professionals and those in the multifamily and 50+ markets. Jon Gruden, color analyst on ESPN’s Monday Night Football, is the opening ceremonies keynote speaker. The audience will also be wowed by Catapult, whose shadow dancing has been featured on America’s Got Talent. The IBS House Party will take place at The Brooklyn Bowl, where you can bowl, enjoy food and drinks, dance and network. And, on Thursday, ZZ Top will be the headliner at the IBS Spike Concert. Following the Spike event, the Kansas City Home Builders Association will honor our own Tom Woods with a reception celebrating his election as chairman of the National Association of Home Builders. For information on specific Kansas City HBA activities at IBS, please contact Dawn Allen (dawn@kchba.org).

Save the Date Inaugural Dinner 2014

Join us in Las Vegas!

Join fellow HBA members to welcome incoming President Mark Mather, Mather Development

Gain the tools to surpass your competition at the building industry’s biggest event–access innovative products and exhibits, unparalleled networking opportunities and exceptional education. You don’t want to miss the 2015 NAHB International Builders’ Show® (IBS)!

Wednesday, December 3 Boulevard Brewery

2401 Southwest Blvd., KCMO

“IBS is the premier place to learn about new products, how they may be used and trends in the industry.”

6 pm Cocktails 7 pm Dinner 7:45 pm Inaugural Program

– skip howes, CaPs, CgB, CgP, Woodland Park, Co

Including announcement of the Builder Hall of Fame, Associate of the Year, and Bob Bollier Sales & Marketing award winners

ja n ua ry 20-22 | | Las V egas Bu i lde rsShow.com

$80 per person 4

October 2014 | Volume 20, No. 10 | www.kchba.org

HBA-PAC Contributes to Candidates Ahead of the 2014 General Elections The HBA’s Political Action Committee (HBA-PAC) made contributions to several candidates competing in the 2014 general elections on November 4, 2014. HBAPAC trustees gathered throughout the year to take a close look at the candidates in races across the Kansas City metropolitan area and discuss how certain races could impact the housing industry. The HBA-PAC is organized to support candidates who understand the importance of housing. Voluntary contributions from members strengthen the HBA’s participation in the election process at the local and state levels in Missouri and Kansas. Our HBA member leaders are frequent contributors to BUILD-PAC, the National Association of Home Builder’s Political Action Committee. Contributions to BUILD-PAC are shared with local candidates, allowing HBA members the opportunity to support candidates at home and nationwide. While there were several excellent candidates in races this year, the HBA-PAC and BUILD-PAC made contributions to the candidates listed below. HBA-PAC CONTRIBUTIONS Kansas Local Ed Eilert, Johnson County Commission Chair Missouri Local Jerry Nolte, Clay County Presiding Commissioner Mike Sanders, Jackson County Executive Ron Schieber, Platte County Presiding Commissioner Kansas Molly Baumgardner, KS Senate Barbara Bollier, KS House

Election Board Websites

Sam Brownback, KS Governor Tom Burroughs, KS House Larry Campbell, KS House Erin Davis, KS House Marvin Kleeb, KS House Ray Merrick, KS House Ron Ryckman, KS House Ken Selzer, Insurance Commissioner Scott Schwab, KS House Jene Vickery, KS House Kathy Wolfe Moore, KS House Missouri Rick Brattin, MO House Mike Cierpiot, MO House Kevin Corlew, MO House John Diehl, MO House Will Kraus, MO Senate Jeanie Lauer, MO House Rebecca Roeber, MO House Rob Schaaf, MO Senate Noel Shull, MO House Noel Torpey, MO House Kenneth Wilson, MO House

Give Your Buyers More with a Natural Gas Home Tip #1: More cost savings Natural gas water heaters cost less to operate than electric water heaters, saving the average household $200 per year on their energy bill.

Natural Gas. It’s what you’d want in your own home.

Unified Government of Wyandotte County and KCKS www.wycokck.org/election Johnson County Election Office www.jocoelection.org Platte County Board of Elections www.co.platte.mo.us/elections Clay County Board of Elections www.claycoelections.com

The most successful builders know that natural gas homes are instantly more attractive to buyers. Natural gas appliances can reduce your customers’ utility bills and help boost your sales numbers. For more on how to use natural gas to turn prospects into buyers, contact Lyn Leet at Lyn.Leet@kansasgasservice.com or 913-344-8808.

NAHB BUILD-PAC Contributions U.S. Senate Pat Roberts, Kansas

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

U.S. House of Representatives Congressman Tim Huelskamp, KS Congresswoman Lynn Jenkins, KS Congressman Mike Pompeo, KS Congressman Kevin Yoder, KS Congressman Emanuel Cleaver, II, MO Congressman Sam Graves, MO Congresswoman Vicky Hartzler, MO Congressman Billy Long, MO Congressman Blaine Luetkemeyer, MO Congressman Jason Smith, MO Congresswoman Ann Wagner, MO For more information on the upcoming general elections, visit the KCHBA’s government affairs webpage at kchba.org.

Jackson County Election Board jcebmo.org Kansas City, Missouri Election Board www.kceb.org

NATURAL GAS IS THE BLUEPRINT FOR SUCCESS.

Voter Registration Deadlines for November 4 General Election Jackson County, October 8, 2014 Kansas City, MO, October 8, 2014 Unified Government of Wyandotte County and KCKS, October 14, 2014 Johnson County, October 14, 2014 Platte County, October 8, 2014 Clay County, October 8, 2014 5

www.kchba.org | Volume 20, No. 10 | October 2014

Member Q&A permits. Rates are good, and people are getting their current homes sold, so can buy that new one. What is your favorite HBA event/ meeting experience? The annual awards banquets, as they feature the Who’s Who in the home building business in all price ranges.

Alan White Vice President, Senior Loan Consultant First Federal Bank Home Purchase and Construction Lending

Why are you a member of the HBA? I do all types of home purchase financing, but my favorite is the construction loan, and my membership in the HBA has helped me meet and get to know a large number of Builders and Associates, which has helped in many ways in my business. I also feel that the HBA is an active and viable trade organization which serves its membership in many very important ways. To name a few: politically, socially, education, and quite simply a way to stay connected to the business.

How did you get into the business? First Federal was my first interview in Kansas City after graduating from college in December, 1973. I was hired and started work on February 1, 1974. What are the goals for your business? To finance home purchase and new construction for individuals, families, and builders, in a manner that is professional, friendly, and efficient.

Step Up to Higher Profits.

What do you like to do outside of work? Play with my two grandsons, play golf, watch the Royals and Chiefs. Where do you like to go for fun? Besides all the HBA events, I like to go out to dinner at new places with my wife and friends.

Construction Plus Financing

What is something people don’t know about you? I got an MBA from Avila College about 25 years ago.

Increase your profit margins by nearly 50% with Construction Plus Financing from First Federal Bank. It’s the one-time close loan solution that saves you time and money. Contact us to take the first step in a more profitable direction with First Federal Bank!

What is your favorite movie? I’m still looking for a movie better than “The Gods Must Be Crazy.” I haven’t found one yet. Television show? No current favorite that stands out, one that comes to mind from the past is “Barney Miller.” Internet site? I’d have to say Google, because I’m always going there to find what I’m looking for.

(816) 245-4160 • www.FFBKC.com/builders 6

What is your prediction for the home building industry? Continued improvement with growth in building

BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY

October 2014 • Volume 20 • Issue 10 Copyright 2014 Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 (816) 942-8800 Executive Vice President Sara Corless Editor Marcia Jurgens Contributing Writer: Beatriz Ibarra Graphics Karla Peterie, Creative Services 2014 Executive Committee Home Builders Association of Greater Kansas City President Chris Ragland Vice President Mark Mather Secretary/Treasurer Brenner Holland Associate Representative Kevin Kirtley Immediate Past President Fred Delibero

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

October 2014 | Volume 20, No. 10 | www.kchba.org

Member Q&A

Click this logo at

What is your prediction for the home building industry? With land prices increasing daily, government regulations increasing daily—specifically on our industry, and hard development costs increasing daily…….I see a lot more repurposing coming our way, and less ‘broad stroke’ building. What is your favorite HBA event/meeting experience? Our board meetings. The dynamics of all the personalities and theories and subjective views in one single room, keep me very amused.

Chad Volkerding Owner, ParkView Homes of KC How did you get into the business? I was finishing up my Pre-Med degree and needed a summer job/internship. So, I started off in the “mail room” with a local builder. Pulled my jeep into a temporary gravel parking lot in the Wilderness community, put my boots on the ground, breathed in the fresh air, then watched a raw piece of dirt become a place where families make all of their memories, go through all their joys and tribulations, rest their heads every night and expect it to provide safety and security--I was hooked instantly. So, well, at least I became fluent in Spanish from my degree, just sayin’. What are the goals for your business? To positively take the torch from some of our great generational builders in this city.

Why are you a member of the HBA? There is power and strength in numbers. And it often helps to have an organized illustrative unit to represent exactly and specifically what you do for a career.

And carry on the fine reputations and traditions they have spent decades establishing. What do you like to do outside of work? I like to smile and laugh with my three little daughters and my perfect wife.

www.kchba.org to login to your account

Online Resources for HBA Members! Register for HBA Events Safe & secure online registration Personalized calendar of events. Get notification of your events

Update Your Membership Change your profile, contact info & membership directory listings.

Where do you like to go for fun? Branson, Big Cedar Lodge, Katy Trail, White Castle, the Majestic, ice cream from Chick-fil-A, Weston Bend Trail, Memphis—the Peabody, Jumpin’ Catfish and the Rendezvous, Jacks Fork River, Meramac Springs, 4 wheeling in the jeep with the doors off and the top off, anywhere and spontaneously…

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

What is something people don’t know about you? I am naturally bald. I lost all of my hair when I was 13 years old. What is your favorite movie? The Color Purple Television show? Ray Donovan Internet site? Slickguns.com

www.kchba.org | Volume 20, No. 10 | October 2014

Sixty-seventh Fall Parade of Homes Wraps Up

Area home builders have welcomed crowds of potential homebuyers to the 307 homes featured during the 2014 Fall Parade of Homes. The Parade opened on September 27 and will continue through October 12. Winners of the Pick of the Parade and Distinctive Plan & Design contests were announced at the awards celebration on October 1stâ&#x20AC;&#x201D;look for the list of winners and photos from the festive event in the November issue of Building Business News. The Home Builders Association appreciates support for the Parade from Stewart Title, presenting sponsor and Laclede Gas, supporting sponsor.

Thanks to the Parade Committee for their planning and guidance: Left to right: Patrick Willis, Willis Construction Co., (Chairman) - Justin Pfeifer, Pfeifer Homes, (Co â&#x20AC;&#x201C; Chairman) - Mark Mather, Richard Mather Builders - Terri Marks, Providence Homes - Bryan Keller, McCray Lumber - Rosemary Vitale, ReeceNichols - Jerry Braklow, Braklow Homes - Chris Findley, United Heating & Cooling - Kevin Stallings, Dreams & Design - Bryan Ballweg, ProBuild - Jerry Ratway, Weber Flooring - Jason Tyler, Wilson Lighting

Clockwise from upper left: Parade entries from Roeser Homes, Ashner Construction Company, Don Julian Builders, Sallee Homes, KGH Building Group and Estes Custom Homes. The HBA building was busy September 23rd and 24th as builders stopped by to pick up their parade materials.

October 2014 | Volume 20, No. 10 | www.kchba.org

Taking the guess work out of building an energy efficient home.

Installing traditional batt insulation, three types of sprayed in wall fiber, fiberglass & cellulose blow, open & closed cell foam, rigid foam board, and fireplaces.

Here for you since 1932.

With all these choices and challenges of code and Energy Star, you can work with a Henges consultant to achieve your goals.

HBA Members Receive an Education in New Home Construction The HBA’s Sales and Marketing Council hosted another successful Onsite Home Construction 101 event on September 17. Onsite Home Construction 101, a home builder-guided tour through several lots at different stages of construction, was held at Benson Place, a Hunt Midwest Community in Kansas City, Missouri. Brenner Holland, Hunt Midwest Real Estate Development, kicked off the event with an overview of the development process. Builder members Tony Libra and Steve Gilliland, Aspen Homes, then guided participants step-by-step through five different lots for a real world view of how homes are built. The event attracted HBA members from various sectors of the industry. Participants developed a deeper understanding of the home-building process from getting a per-

mit to placing concrete to scheduling the various trades and getting a new home move-in ready. Participants were also able to ask questions of the developers and builders on any topic. The experience was completed by the sound of construction equipment and dirt on our shoes. The Little Italy Food Truck provided lunch and a chance to network with other HBA members.

HengesInsulation.com • 913-764-4600

The HBA greatly appreciates Brenner Holland and Jenni Mann, Hunt Midwest Real Estate Development, Inc., Tony Libra and Steve Gilliland, Aspen Homes, and Meredith Tolliver and Aimee Miller, Reece Nichols, for their help making the event a success. Please check kchba.org for information about other upcoming events.

HENGESINSULATION.COM • 913-764-4600

Furniture

OSHA Announces New Reporting Requirements On Thursday, September 11, the U.S. Department of Labor’s Occupational Safety and Health Administration announced a final rule that requires employers to notify the agency of work-related fatalities within 8 hours and within 24 hours of an in-patient hospitalization, amputation, or loss of an eye. The rule goes into effect January 1, 2015, and applies to all employers, even those with fewer than 10 employees. Previously, OHSA’s regulations required an employer to report only work-related fatalities and in-patient hospitalizations

•

Flooring

•

Appliances

•

Electronics

Nebraska Furniture Mart provides an unrivaled selection of products and services under one roof, making it your one-stop solution for all of your building or remodeling needs. From minor upgrades to custom and professional applications, we have the right prices, superior designs, and professional installation capabilities. Visit us for all of your Furniture, Flooring, Appliances, Electronics, Lighting and Countertop needs.

of three or more employees. Reporting single hospitalizations, amputations or loss of an eye was not required under the previous rule.

Store Location: I-435 & State Ave. West • Kansas City, KS Convenient Hours: Mon – Sat: 10am to 9pm, Sun: 10am to 6pm Builder Sales: 913-288-6299 • 800-407-5000

To make these requirements a little less burdensome, OSHA is developing a website for employers to report incidents electronically, in addition to the phone reporting options.

www.kchba.org | Volume 20, No. 10 | October 2014

Join the HBA Leadership Circle in 2015

Platinum $10,000 HBA membership dues for one year Print and Powerpoint recognition at major events Building Business News & HBA website recognition BBN Monthly 1/4 pg. ad HBA Education Loaded Value of $500 $650 Loaded Value toward HBA Permit Reports $500 Loaded Value toward Home Show Booth + 100 tickets 6 tickets to the Fall and Spring Parade Awards Celebrations One free HBA Golf Team or One Free Clay Shoot Team One free Spring Industry B2B Trade Show booth

Sponsorship Opportunities and Benefits Each year the HBA offers member companies the opportunity to take part in a year-long sponsorship program with benefits that add value to the sponsor’s HBA membership. Sponsorships exemplify a unique commitment to the home building industry and provide the HBA with an additional source of support for marketing, advocacy, networking and education, as well as underwriting for major events. Contact Phil Yancey (phil@kchba.org or 816-733-2245) for more information.

Gold - $5,000 HBA membership dues for one year Print and Powerpoint recognition at major events Building Business News & HBA website recognition BBN Monthly 1/4 Page ad HBA Education Loaded Value of $500 $650 Loaded Value toward HBA Permit Reports $500 Loaded Value Toward Home Show Booth + 50 Tickets 5 tickets to the Fall and Spring Parade Awards Celebrations One free HBA Golf Team or One Free Clay Shoot Team $250 Value Toward Spring B2B Industry Trade Show booth

Thanks to These HBA 2014 Sponsors Platinum sponsor

Bank of Blue Valley GOLD sponsors

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

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

Silver - $3,500 HBA membership dues for one year Print and Powerpoint recognition at major events Building Business News & HBA website recognition BBN Monthly 1/8 Page ad HBA Education Loaded Value of $250 $500 Loaded Value toward HBA Permit Reports $500 Loaded Value Toward Home Show Booth + 25 tickets 4 tickets to the Fall and Spring Parade Awards Celebrations 2 Free Golf Players or 2 Free Clay Shooters $250 Value Toward Spring B2B Industry Trade Show booth

Silver sponsors

Ferguson Enterprises, Inc. Stewart Title

Bronze $2,500

Kansas Gas Services Missouri Gas Energy

HBA membership dues for one year Print and Powerpoint recognition at major events Building Business News & HBA website recognition BBN Monthly Company Name Recognition for Sponsor Level HBA Education Loaded Value of $100 $300 Loaded Value toward Permit Reports 25 tickets to the Home Show ($250 value) 2 tickets to the Fall and Spring Parade Awards Celebrations 1 Free Golf Player or 1 Free Clay Shooter $100 Value Toward Spring B2B Industry Trade Show booth

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

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

Pacific Mutual Door & Window Pella Products of Kansas City ProSource of Lenexa Secured Title of Kansas City Western Chandelier 84 Lumber 10

October 2014 | Volume 20, No. 10 | www.kchba.org

Welcome New Members ACS: Concrete/Construction Jesse Lockard 18901 W 158th St Olathe, KS 66062 (913) 829-7222 www.kansascityconcrete.com Presko Custom Homes, Inc. Joe Presko 5041 NE Vivion Rd Kansas City, MO 64119 (816) 215-7430 BMO Harris Bank Amy McDonald 11301 Nall Ave Leawood, KS 66211 (816) 215-7817 www.bmo.com

BMO Harris Bank Affiliate members: Steve Christie Gwen Goins Belinda Hollins Jalyn Kellerman Robert Vejar

First Bank of Missouri Wayne Fowler 7001 North Oak Trafficway Gladstone, MO 64118 (816) 436-1900 www.firstbankmo.com ProTect, LLC Robert Horrell 4901 West 136th Street Leawood, KS 66224 (913) 261-9133 www.protectllc.com

CS Carey, Inc. Kelly Carey 6225 Kansas Ave Kansas City, KS 66111 (913) 432-4877 www.cscarey.com

ICM, Inc. Justin Blick 310 N 1st Colwich, KS 67030 (316) 796-0900 www.icminc.com

BNC National Bank Matthew Locke 7007 College Blvd, Ste. 600 Overland Park, KS 66221 (913) 647-7000 www.bncnationalbank.com

2004 Mike Bryant Heating & Cooling L.L.C.

1966 Kenny’s Tile & Floor Covering

2004 R & S Home Builders Wood Brothers Construction Inc.

1974 R. M. Standard & Company 1979 Arch Design Corporation David R. Gilsdorf Concrete Finishing Co., 1985 Ben Cerra Construction, Inc. 1987 Kansas City Millwork Company 1990 J.S. Robinson Fine Homes 1991 Neese Construction Corp Town & Country Guttering, Inc. 1994 Becca Masonry, Inc. 1995 ECS Geothermal Inc. Penrod Homes, Inc. 1999 Ken Praiswater Construction, L.L.C. 2001 James Engle Custom Homes

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

Anniversaries 1961 Saul Ellis and Company, Inc.

COUNT ON US

(816) 842-1008

2005 Ernst Brothers Home Construction, Inc. Lancaster Brothers Heating & Cooling Ray Cochran & Co. LLC Concrete Work Reynolds Construction, Inc 2006 Comerio Corporation New Castle Homes LLC 2008 Builders Stone & Masonry 2009 Precision Woods, Inc 2011 A+ Insulation Hermes Landscaping, Inc. James Hardie Building Products King Building Inc. 2012 84 Lumber Ace Electric Colonial Nursery Corp. E-Z Lawn & Landscape, LLC Roth Distributing Select Living Systems, LLC 11

www.kchba.org | Volume 20, No. 10 | October 2014

Upcoming Webinar Wednesday schedule The NAHB offers convenient, low-cost continuing education through the Webinar Wednesday seminars. The seminars cover a wide range of topics and count for one hour of continuing education credit for NAHB professional designations. Go to nahb.org and enter Webinar Wednesdays in the search box to visit the schedule and registration page. Top 10 OSHA Citations for Construction and How to Avoid Them Wednesday, Oct.15 During this webinar, you will receive a list of the top 10 OSHA citations in the residential construction industry and specific requirements and methods to comply with the standards that lead to fines when not followed. The Next ‘Genderation’: Unlocking the Full Potential and Emerging Trends for Women in Building Wednesday, Oct. 29 This program will address opportunities for the employer as well as the individual employee to create a better understanding of the value and unique abilities that women bring to building while uncovering some unusual trends that attract women to join the building ranks — and the variety of jobs that entails.

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

These recent presentations can be viewed on demand: Big Picture Marketing for 2015: Building a Solid Foundation for Your Business Learn how and why your website serves as the center of your strategy and what that means for how to handle each of your marketing tactics and activities. Get ideas for improving your marketing program with dozens of real-world examples of current, successful and innovative marketing tactics being used by home builders across the nation.

* Source: Scarborough research, August 2013

Wellness is the New Black Today’s mature buyers are busier and healthier, and they’re looking for activities that will help them stay healthy and active longer. The experts presenting this webinar will provide information on the sorts of activities now in demand among such buyers, and they’ll explain the ways they choose those activities and how they put

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

together wellness programs that work for their residents. Common-Sense, Best-Practice Business Planning Learn how to easily create, maintain and most importantly change the way you analyze your business. Truly know if you’re winning or losing the most important game of your life. With an open mind and a few tweaks to what you’re already doing, you can use fundamental business planning practices to determine via facts, the best solutions to every day decisions. Social Media for Remodelers: Does it Really Work? With an undeniable surge of social media mediums that focus on sharing photos and cost data on home improvement projects this is a must-attend webinar to help industry professionals understand which social media platforms work best for professional remodelers, pitfalls to avoid when creating profiles, how to handle reviews and the impact of engaging or not engaging in these mediums. For assistance in registering for webinars, contact Dawn Allen (dawn@kchba.org or 816-733-2239).

October 2014 | Volume 20, No. 10 | www.kchba.org

NAHB Report from Fall Board National board members Bob Frost, Bruce Rieke, Mark Hoffman, Dan Norburg, George Schluter, Tom French, Misty Hanson and Tom Woods attended the Fall Board Meeting held last month in Phoenix. Among the decisions made, the NAHB Board of Directors approved a new field representative program to support local and state HBAs. The number of required national board meetings was reduced from three to two a year, though all three planned meetings will still take place in 2015. Field Representative Program Plans A field representative will live and travel in each of the five NAHB regions in 2015 when the program launches. Within three years, the program will be fully expanded with one field representative living and working in each of the 15 NAHB geographical areas. Which regions will first be staffed with a field representative has not been determined. Key objectives of the program are: Provide general association management support and consultation. Help HBAs and members access NAHB benefits, service and staff.

NAHB Keeps the Wheels Turning

Hill visits. By making it easier to participate in meetings and to fulfill board duties, and encouraging more Web-based and conference call meetings, this modification is expected to engage younger members who represent the future of NAHB by helping them to balance competing, professional, personal and volunteer demands. Additionally, the two standing board meetings are anticipated to be more engaging, offering members more networking and education opportunities.

$1,281 Farm Bill generates additional home building and remodeling.

$669

Here’s what we’ve been working on so far this year.

EPA drops post-construction stormwater rule.

$813

U.S. Supreme Court Clean Air Act ruling benefits multifamily builders.

$1,477 Keeping costly provisions out of building codes saves construction costs.

$1,132

The number of national board members allocated to each local HBA is based on the number of builder members in the local association.

Homeowner Flood Insurance Affordability Act saves business for builders and remodelers.

A strong housing industry is key to our nation’s economic recovery. And when lawmakers and bureaucrats try to chip away at your profits with wrong-headed or just plain expensive rules, NAHB is here to make sure that you aren’t regulated out of business.

These dollar values represent the savings per housing start a typical builder will see as a result of select NAHB advocacy victories in 2014. Some members will experience more of these benefits than others, depending on location and market segment.

Learn more at

valueofnahb.org

This change is expected to save NAHB about $700,000 a year, in addition to the savings realized by HBAs and individual members.

HBA offers permit information exclusively to members

Enhance HBA recruitment and retention programs and services. Conduct onsite local or statewide NAHB orientations for executive officers and members. By boosting local and state associations, field representatives will strengthen the entire Federation. Moreover, the program will connect NAHB to the grassroots, raise awareness and enhance value for each member, and increase participation and engagement. A Move to Two Board Meetings To attract younger members and to save money for attendees, local and state associations and NAHB, the board voted to amend NAHB bylaws to require only two board meetings per year – an International Builders’ Show and mid-year meeting. The mid-year meetings will alternate between Washington, D.C. and other cities across the country. The Washington meetings will coincide with planned Capitol

HBA members can subscribe to the Residential Permit Reports to answer this question. The Detail Permit Report provides up-to-date information on residential building permits in the eight county metro area, including builder name and contact info, permit address, subdivision and value. The Detail Permit subscription cost is $460 per year and other reports are available at varying prices. 13

www.kchba.org | Volume 20, No. 10 | October 2014

Permits Maintain the “New Normal” Trend

HBA Staff Sara Corless Executive Vice President scorless@kchba.org, 816-733-2216 Beatriz Ibarra Vice President of Government Affairs bibarra@kchba.org, 816-733-2237

August building permit activity in the Kansas City metro area underscores the nationwide discussion of a “new normal” developing for housing. According to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report, 2014 activity is nearly flat as we approach the 4th quarter. Localities in the eight-county metropolitan area issued 347 permits for new single family residences during August, a slight decrease from July 2014 and from August 2013. The monthly averages of 341 and 344, respectively for 2013 and 2014, indicate that new home construction is remaining stable at this time. The year-to-date total of 2,749 is 1.5% higher than 2013’s total through August. In line with nation-wide trends, multi-family building is the highest in many years, with 2,271 units permitted during the first eight months of 2014.

Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219 Marcia Jurgens Director of Administration marcia@kchba.org, 816-733-2215 Jenni Dold Director of Marketing Jenni@kchba.org, 816-942-8800 Andrew McKeegan Association Services Manager Andrew@kchba.org, 816-733-2224 Phil Yancey Membership Manager Phil@kchba.org, 816-733-2245 Dawn Allen Executive Assistant/Communication and Events dawn@kchba.org, 816-942-8800 Stephanie Stollsteimer Director, Special Projects and Development

will be a positive year for single family builders,” said Executive Vice President Sara Corless. Counties ranked by permit activity remain in the same positions for both 2013 and 2014 and, similarly, the top ten most active cities’ list remains unchanged except Raymore replaces Leawood as tenth in the group. Kansas City, Missouri has issued 481 single family permits during 2014, followed by Olathe at 346, Overland Park with 270, Lee’s Summit at 199 and Lenexa at 135. The area’s single family permits are divided nearly equally between Kansas and Missouri with Kansas counties totaling 1381 and Missouri counties with 1368. The August new home sales report, which showed sales reaching the highest level in six years, is encouraging. However, western states accounted for most of the increase (with a 50% increase), while sales were unchanged in the Midwest.

“Builders’ confidence is still good and production is trending upward, so 2014

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Residential Building Permit Statistics October 2014 | Volume 20, No. 10 | www.kchba.org

Residential Building Permit Statistics

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

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

Single Family Units^

M-F Units Sale%

M-F Units Rent

Total Units

S-F Units YTD

M-F Sale YTD

0 0 1 0 0 0 0 1 3 0 1 12 1 19

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

0 0 1 0 0 0 0 1 3 0 1 12 1 19

9 8 26 0 0 0 4 3 15 7 11 68 9 160

0 0 4 45 8 0 5 0 0 7 69

0 0 0 0 0 0 0 0 0 0 0

0 0 4 45 8 0 5 0 0 7 69

5 0 3 0 4 6 4 5 2 32 4 0 0 65

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

0 7 7 0 5 0 2 0 21

0 0 0 0 0 0 0 0 0

1 0 1 10 3 14 12 2 0 42 33 0 7 12 0 137

AUgUST 2014 AUGUST 2014 M-F Rent YTD

Total Units YTD

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

9 8 26 0 0 0 4 3 15 7 11 68 9 160

21 0 5 333 39 1 19 8 0 37 463

0 0 0 0 0 0 0 0 0 0 0

0 0 0 164 0 0 0 0 0 0 164

21 0 5 497 39 1 19 8 0 37 627

5 0 3 0 4 6 4 5 2 32 4 0 0 65

121 0 54 7 28 34 27 32 10 184 13 0 0 510

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

108 0 0 0 0 0 0 513 0 162 0 0 0 783

229 0 54 7 28 34 27 545 10 346 13 0 0 1293

0 0 0 0 0 0 0 0 0

0 7 7 0 5 0 2 0 21

0 116 44 1 69 0 5 0 235

0 0 0 0 0 0 0 0 0

0 350 0 0 0 0 0 0 350

0 466 44 1 69 0 5 0 585

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

0 0 0 0 0 0 0 0 0 114 0 0 0 0 0

1 0 1 10 3 14 12 2 0 156 33 0 7 12 0

8 0 1 41 27 62 135 3 2 346 270 12 133 36 0

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

0 0 0 0 0 0 306 0 0 130 538 0 0 0 0

8 0 1 41 27 62 441 3 2 476 808 12 133 36 0

114

251

1076

974

2050

Single Family Units^ LEAVENWORTH COUNTY Basehor 4 Lansing 4 Leav. County 5 Leavenworth 0 Tonganoxie 2 15 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill

August 2014

M-F Units Sale%

M-F Units Rent

Total Units

S-F Units YTD

M-F Sale YTD

M-F Rent YTD

Total Units YTD

0 0 0 0 0 0

4 4 5 0 2 15

61 15 40 4 19 139

0 0 0 0 0 0

61 15 40 4 19 139

2 0 16 18

0 0 0 0

2 0 16 18

11 1 123 135

0 0 0 0

11 1 123 135

2 0 0 1 0 3

0 0 0 0 0 0

2 0 0 1 0 3

3 22 0 1 5 31

0 0 0 0 0 0

3 22 0 1 5 31

347

114

461

2749

2271

5020

Comparison of Single Family Building Units for Greater Kansas City

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

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

2007

2008

2009

2010

2011

2012

2013

2014

Annual Total

6,385

3,232

2,155

2,471

2,301

3,299

4,090

2,749

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

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

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

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

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

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

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

283 219 361 441 381 359 358 347

All numbers shown in the box above are ACTUAL numbers.

Comparison of Permits By Units Issued Year to Date* 2007-2014 2007 2008 2009 2010 2011 2012 2013 2014

S-F Units 4693 2372 1336 1637 1502 2027 2709 2749

M-F Units

957 1500 296 223 576 1062 1881 2271

Total Units

5650 3872 1632 1860 2078 3089 4590 5020

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

www.kchba.org | Volume 20, No. 10 | October 2014

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9/23/14 9:37 AM