February 2015
Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members
FOR YOUR CALENDAR: March 13 - MN Power Limited Technician CE
March 13 - MN Plumber CE March 9, 16, 29 - EPA RRP Refreshers
March 24-27 - OSHA 30Hour Construction Course (Free to members) April 7-8 - OSHA 10Hour Construction Course (Free to members)
April 28 - Fargo Special Election
April 30 - May 3 and May 7-10 - Spring Parade of Homes
QUOTABLE The unemployment rate inched up to 5.7 percent in January from 5.6 percent in December, which is in fact a positive development as this change was due to more individuals seeking work. In January, home builders and remodelers added 20,100 jobs on a seasonally adjusted basis. Over the last 12 months, the industry has created 162,000 jobs. -David Crowe, NAHB Chief Economist Eye on Economy, Feb. 11
Local Issues Update
Welcome to the first issue of Permits Plus. Published six times per year in addition to the Plains Builder, it aims to provide a concise report on building permit numbers and a timely update on Association advocacy efforts.
Fargo
The revised FEMA Flood Insurance Rate Map was adopted on Jan. 16, 2015. Flood insurance is mandatory for mortgaged structures in the Special Flood Hazard Area. Check www.fargofloodinsurance.com for map updates.
In December, Fargo’s City Commission adopted revisions to its floodproof foundation requirements. HBA of F-M leaders involved with preparatory meetings on these changes were not presented an opportunity to review the final document and were surprised to find troubling changes affecting cost. Association leaders are working with Fargo’s engineering and inspections departments to iron out issues and provide education to the industry on the changes so contractors can prepare accurate bids and planning for projects. Last month, Fargo learned it would be allowed to continue participating in FEMA’s “basement exception” which allows construction of homes with basements even though they are in the floodplain. Due to the no basement failures for over 40 years, and strict floodproof foundation standards, FEMA will allow the exception until the floodplain is revised again. Moorhead
The 2015 Minnesota Building Code became effective Jan. 24. A new provision requires fire sprinklers in certain housing types and sizes including two-family dwellings, townhouses and single-family dwellings of 4,500 square feet or more. The 2015 Minnesota Energy Code was scheduled to become effective Feb. 14. Home builders should be aware of the changes regarding foundation insulation and blower door testing requirements.
Minnesota contractors who are members of the HBA of F-M have access to the Builders Association of Minnesota’s members-only website at www. bamn.org. BAM’s code guides are valued at over $10,000, and they will help you navigate and comply with the new codes. Request a user name and password from Katherine Nielsen at (651) 646-7959 ext. 162 or visit the website contact page: www.bamn.org/contact. Jack Nyberg has been named Moorhead’s Building Official following the retirement last month of Kurt Wenzel. Nyberg has been part of the Moorhead Building Codes team since 2000. He also has experience as a mechanical inspector for the city of Fargo. Nyberg holds certifications as both a Minnesota Certified Building Official and Master Plumbing Certification from both Minnesota and North Dakota, having worked in the trades for several years prior to working in building codes.
Updates continued on back page HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM
HOUSING Starts
HOUSING Value
TOTAL Permits
TOTAL Values
City Dilworth Moorhead Fargo West Fargo Totals Dilworth Moorhead Fargo West Fargo Totals Housing Starts Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Totals Housing Starts Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Totals
January 2015
0 1 2 4 7 0 $300,000 $955,000 $740,900 $1,995,900 7 0 2 86 49 0 11 155 $1,995,900 $0 $1,723,000 $1,477,466 $5,105,356 $0 $225,000 $10,526,722
First Quarter 2014
Difference
0 8 27 21 56 0 $1,919,000 $5,798,305 $5,741,500 $13,458,805 56 0 18 275 112 13 61 535 $13,458,805 $0 $40,343,700 $5,508,840 $19,108,324 $13,648,100 $1,549,801 $93,617,570
Percentage Difference 0% 88% 93% 81% 88% 0% 84% 84% 87% 85% 88% 0% 89% 69% 56% 100% 82% 71% 85% 0% 96% 73% 73% 100% 85% 89%
0 7 25 17 49 0 $1,619,000 $4,843,305 $5,000,600 $11,462,905 49 0 16 189 63 13 50 380 $11,462,905 $0 $38,620,700 $4,031,374 $14,002,968 $13,648,100 $1,324,801 $83,090,848
HBA of F-M’s monthly building permit report is prepared by Fiebiger, Swanson, West & Co.
January 2015 Dilworth, Moorhead, Fargo, West Fargo Total Building Permit Value January 2015
Total Building Permits January 2015 Total Building Dilworth, Moorhead Fargo,Permits West Fargo
Miscellaneous 7%
Housing Starts 5%
New Commercial 1%
Dilworth, Moorhead Fargo, West Fargo
Total Building Permits Value Miscellaneous 2%
Housing Starts 19%
Commercial Remodel 32%
2
Residential Remodel 55%
Commercial Remodel 49%
New Commercial 16%
Residential Remodel 14%
Permits Plus
SEASONALLY ADJUSTED UNEMPLOYMENT RATES Dec. 14
Nov. 14
Minnesota
Dec. 13
Source: mn.gov
SINGLE AND MULTI-FAMILY BUILDING PERMITS Dec. 14
Dec. 13
Minnesota
% change
Source: NAHB
3.6%
3.7%
North Dakota
4.6%
Source: nd.gov
16,560
16,520
0%
8,860
47%
976,400
6%
2,877
29%
North Dakota Source: NAHB
2.8%
2.7%
United States
2.7%
Source: mn.gov
13,030
United States Source: NAHB
5.6%
5.8%
Fargo-Moorhead
6.7%
Source: nahb.org
1,038,500
Fargo-Moorhead
Source: HBA of F-M
2.7%
2.2%
2.9%
3,719
WAGE GROWTH - AVERAGE ANNUAL SALARY
LOCAL REAL ESTATE
Source: Greater Fargo-Moorhead Economic Development Corporation
Source: Coldwell Banker First Realty, Barbara Grande
Dec. 14
Dec. 13
% change
Dec. 14
Dec. 13
% change
$43,264
$42,120
2.7%
$189,342
$181,558
4.2%
$34,684
$34,008
2%
5,416
5,310
2%
Cass Clay
Number of new listings
FRAMING LUMBER PRICES
MORTGAGE RATES
Source: National Association of Home Builders
Date
Jan. 23
Source: Wells Fargo as of Jan. 30
Per 1,000 Board Ft. CME Futures
$367
3.625%
15-Year Fixed
3.125%
30-Year Fixed FHA
$335.40
5-Year ARM
$383
$320.20
Nov. 21
$363
$327.40
$382
30-Year Fixed
$308.10
Jan. 9
Dec. 24
Home prices in Fargo-Moorhead
30-Year Jumbo
3.625% 3.000% 3.875%
SEE YOUR AD HERE! CONTACT ALLISON WECKMAN AT (701) 232-5846 OR ALLISONW@HBAFM.COM
FARGO SPECIAL ELECTION FOR MAYOR, COMMISSION IS APRIL 28 Fargo residents will go to the polls April 28 to elect a new mayor and fill an open seat on the city commission. Dr. Tim Mahoney has vacated his commission seat to run for mayor against Brad Wimmer. Mara Brust, Cole Carley, Tony Gehrig, Bradford Shaffer, John Strand and Scott Wagner are vying for the open commission seat. The HBA of F-M plans to host Candidate Forums to allow its leaders to meet the candidates and ask questions specific to the home building industry. February 2015
3
Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103
State Issues Update
Several HBA of F-M volunteer leaders traveled to Bismarck and St. Paul in mid February to take part in the North Dakota Association of Builders and Builders Association of Minnesota’s legislative events. NDAB hosted a chili and oyster stew feed with the North Dakota Association of Realtors. The HBA of F-M group spent the day at the capitol meeting with legislators on upcoming issues. They took a special interest in SB 2375, which forms special purpose tax districts and a community facilities district for public improvements. There are five pieces of legislation that relate to the F-M Diversion, including one, which the HBA and NDAB oppose, that appropriates money to another study of the diversion. Finally, they thanked the legislators that voted against HB 1451, the sprinkler bill, which failed. They topped off the day visiting with House Majority Leader Al Carlson, Senate Majority Leader Rich Wardner and Senate Minority Leader Mac Schneider. Here is a brief on additional bills of interest: »» HB 1415 pertains to funding for in-town levee work for Fargo. The HBA supports this bill. It is sponsored by House Majority Leader Al Carlson and passed the House. HBA supports. »» SB 2020 pertains to appropriations for the State Water Commission and includes funding for flood protection for the Fargo area. It remains in Appropriations Committee. HBA supports. »» SB 2095 relates to out-of-state contractors that come
into North Dakota during emergencies to do work. It died on the Senate floor. »» SB 2147 changes the language in the One Call statute to require excavators to pay the operator’s cost of utility locates on any excavation site after the first two requests. It passed the Senate. HBA/NDAB opposes. »» SB 2188 pertains to construction fraud. It passed the Senate 45-0. »» HB 2220 pertains to the state’s Housing Incentive Fund and providing money and tax incentives for affordable housing in the state. HBA/NDAB support. »» SB 2278 pertains to contractor licensing fees. It passed the Senate 33-13.
At BAM’s Building Industry Day at the Capitol, the HBA of F-M set up meetings with state legislators including Sen. Kent Eken, Rep. Paul Marquart, Rep. Ben Lien and Rep. Jeff Backer. They covered several bills including SF 104, which relates to statutory housing warranties, HF 539 and SF 201, both relate to adopting a six-year cycle for code adoption and a 12-month implementation period, and SF 118, which prohibits mandatory fire sprinkler installation. Finally, there was discussion on HF 473, also called “This Old House,” which relates to taxation and authorizing valuation exclusion for certain improvements to homes and commercial-industrial property. HBA President Clay Dietrich, Dietrich Homes, Inc., met with Gov. Mark Dayton regarding a lawsuit filed by the Builders Association of the Twin Cities regarding Minnesota’s sprinkler mandate and energy code.