2013
Annual Report
Table of Contents About the HBA........................ 2 Members................................... 3 2013 Accolades........................ 4 Advocacy.................................. 5 Education.................................. 6 Member Events........................ 7 Public Events............................ 8 Communications..................... 9 Health Plan & Benefits.......... 10 HBC Foundation................... 11 The HBA of F-M promotes an environment in which members and their businesses can prosper.
About the HBA 2013 BOARD OF DIRECTORS President Darrick Guthmiller President Elect Carlita Dietz Treasurer Clay Dietrich Associate Vice President Sylvia Lunski Secretary Terry Lipp Directors Kenneth Andersen Stan Birky Harry Gilbertson John Koerselman Paul Krabbenhoft Dan Lindquist Nancy Michelsen Gary Orth Todd Rasmussen Tom Spaeth Robin Swanson Past President Tyrone Leslie
Senior Life Director Gerald Eid Life Directors Don Dabbert, Jr. John Gunkelman Ken Krajsa John Mahan
2013 Ex-Officio Directors NDAB President Jason Eid NDAB State Representative John Gunkelman NDAB Associate National Director Ken Krajsa
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The HBA of F-M promotes an environment in which members and their businesses can prosper.
H
ome Builders Association of F-M is a nonprofit organization founded in 1956 that represents the home building industry in several community events and projects throughout Fargo-Moorhead and the surrounding areas. The HBA of F-M’s efforts focus on the promotion of homeownership and fighting legislation that would result in cost increases to the residential home buyer. It is the Association’s goal to represent the mainstream of the home building and remodeling industry and those firms that believe in providing fair, honest and quality services. Three memberships in one! Upon joining the HBA of F-M, members also hold membership with North Dakota Association of Builders and National Association of Home Builders. The HBA of F-M also has a relationship with Builders Association of Minnesota for licensed builders in Minnesota. By participating in the Association, members can enhance their business opportunities and gain a competitive edge by staying exposed to the most current information and issues. Being involved in Association activities is the key to getting the most from membership.
HBA of F
HBA Staff Executive Vice President.........................Bryce Johnson brycea@hbafm.com Communications Manager......................................Krista Mund kristam@hbafm.com Director of Accounting & Records........Amanda Ohlsen amanda@hbafm.com Development & Project Coordinator..........Jenny Erickson jenny@hbafm.com Membership Coordinator....................... Allison Weckman allisonw@hbafm.com Communications & Office Coordinator...........Mariah Wenaas mariah@hbafm.com Public Affairs Coordinator........Mike Obach mike@hbafm.com
Education, Eve Parade of Home
Health Trust: Plan Management
Accounting
2013 HBA of F-M Annual Report
Members T
he heart of the Association remains within its members and its core of a volunteer board of directors and committees. In 2013, the HBA of F-M met its member retention rate goal of 92 percent (one of the highest in the nation) and was just shy of its new member recruitment goal. Membership staff began one-on-one orientation sessions with new members. The HBA’s organizational chart reflects a member-driven organization, and its history tells the same: In 1956, a group of 17 builders saw a need for the building industry to have one voice addressing regulation and to guide their profession’s direction. They submitted by-laws for a constitution and articles of incorporation to become a local association affiliated with the National Association of Home Builders in October 1956. “If the charter members looked at the organization today, in one word, I think their reaction would be ‘wow,’” 2002 HBA Past President Paul Kochmann, Kochmann Brothers Homes, Inc., says. “Even in my time with this organization, we’ve grown from a staff of two to eight, have gone from the Home & Garden Show at West Acres to the Fargodome with a huge jump in exhibitors, and have seen the Parade of Homes grow. The changes have been phenomenal and I think the charter members would be thrilled to see what their Association has accomplished.”
F-M Organizational Chart Membership Committees
ents, Membership Retention, New Member Development, PAC, es, Public Issues, Remodelers Council, Workforce Development
Board of Directors
Home Builders Care Foundation
Executive Committee
Bryce Johnson Executive Officer/ Executive Vice President
HBA Staff g, Communications, Events, Development, Membership, Public Affairs
2013 HBA of F-M Annual Report
Workforce Development
by the numbers • • • • • • •
Total members: 796 Builders: 218 Associates: 555 Affiliates: 23 Retention Rate: 92 percent Members Recruited: 66 Total Committee Members: 85
2013 Home Builders Care Foundation President: Chad Maloy Gate City Bank
2013 F-M Home Builders Health Plan & Trust Chair: Barb Grande Coldwell Banker First Realty
2013 committee chairs Education Chair: Larry Mayer Solution Design, Inc. Events Chair: Diana Stead Stone Holding Company Membership Retention Chair: Drew Likness Chase Realty New Member Development Chair: Drew Likness Chase Realty PAC Chair: Tyrone Leslie Heritage Homes Parade of Homes Chair: Valerie Fiske Park Co. Realtors Public Issues Chair: Paul Lindemann Lindemann Finish Carpentry, Inc. Remodelers Council Chair: Ursula Hegvik Smart Spaces, Inc.
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2013 Accolades accolades
Builder of the Year -Darrick Guthmiller, Kochmann Brothers Homes, Inc.
Associate of the Year -Terry Lipp, Ferguson Bath, Kitchen & Lighting Showroom
BEAM Award (Builders Engaging Associate Members) -Kochmann Brothers Homes, Inc. Extra Mile Award -Paul Krabbenhoft, Coldwell Banker First Realty
HBA receives NAHB Association Excellence Awards -Best Public Relations Program Conducted -Best Local Government Affairs Effort HBA Executive Vice President Bryce Johnson a finalist for EOC “Executive Officer of the Year.”
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T
he HBA of F-M has received accolades from the National Association of Home Builders for its programs and services. It regularly recognizes members for their commitment to the Association and achievements. Here is a summary from 2013:
The Builder and Associate of the Year awards are presented each fall to recognize one outstanding HBA of F-M Builder member and one outstanding Associate member for efforts and work expended in the interest of his or her fellow members. Local winners are included in a state-wide competition judged by the North Dakota Association of Builders. Darrick Guthmiller, Kochmann Brothers Homes, Inc., received Builder of the Year, and Terry Lipp, Ferguson Bath, Kitchen & Lighting Showroom, received Associate of the Year. The BEAM (Builders Engaging Associate Members) Award was created by NAHB to recognize Builder members exemplifying the motto “it’s good business to do business with a member.” For the local award, HBA of F-M Builders were nominated and judged by Associate members considering: loyalty, ethics, trust, consideration and communication when dealing with trade partners. The local winner was Kochmann Brothers Homes, Inc. The company also received the state award from the North Dakota Association of Builders and is in the running to win NAHB’s award.
The Extra Mile Award was created in 2000 by HBA of F-M staff to recognize volunteers continually going above and beyond what is expected for the Association. The winner is selected annually from a group of monthly winners. These members consistently work behind the scenes to make events and activities better, promote the HBA in a favorable light, are willing to offer guidance to staff and are active in committee or board work for the HBA. Paul Krabbenhoft, Coldwell Banker First Realty received the 2013 award. The National Association of Home Builders’ Association Excellence Awards is a program designed to recognize outstanding accomplishments of state and local home builders’ associations and executive officers in the field of association management. In 2013, the Home Builders Association of F-M received two awards: • The “Best Public Relations Program Conducted” award was given for the HBA’s quarterly press conferences held in 2012. • The “Best Local Government Affairs Effort” award was given for events held to prepare members for upcoming elections, hear from those running for office and build relationships with current legislators and candidates for office. The HBA of F-M’s Executive Vice President Bryce Johnson was one of three finalists out of over 700 leaders for the Executive Officers Council “Executive Officer of the Year” Award. She was recognized at the Association Leadership Institute in August.
2013 HBA of F-M Annual Report
Advocacy P
erhaps the HBA of F-M’s most valuable service to the building industry is advocacy and government relations for you, the member, and fighting to keep the dream of home ownership affordable. It is our goal to develop the safest, most cost-effective building standards that allow the industry to continue building high-quality, affordable homes. Flood... The biggest issue we face as a community continues to be flooding - the actual event of flooding in the spring along with the strain that the threat of flooding puts on consumer confidence and businesses. The HBA has continued to support and work for permanent flood protection for the metrowide area. This includes fighting to maintain the area’s basement exception and all issues pertaining to flood insurance which is a federal requirement for many homes in the region. Currently, annual flood insurance premiums average $500 per year, but home owners could face nearly 20 times that cost due to the Biggert Waters Act passed in 2012. The HBA was involved in lobbying efforts to introduce legislation last year to remedy the situation. Fire sprinklers... We continue working with the Builders Association of Minnesota to fight fire sprinkler mandates for homes over 4,500 square feet. The average cost for materials and installation is $9,000. For rural or lake-area homes, median price jumps to $14,000. This mandate could price thousands of buyers out of the new-home market while not addressing the problem of older homes without hard-wired smoke detectors.
Energy code... Staff and members worked with the city of Fargo on its adoption of the 2012 International Residential Code and assisted the North Dakota Association of Builders with the state’s adoption. Due to our efforts, both Fargo and North Dakota have decided to sustain the current 2009 chapter of the energy code instead of adopting the more stringent 2012 version which could have added up to $10,000 to the cost of a home, but wouldn’t be realized in savings for over 40 years. NDAB-PAC... provides a critical piece of our Association’s advocacy efforts. We hosted four Candidate Forums for elections in the city of Moorhead. We raised $18,000 for PAC and had almost 50 new contributors compared to 2012.
2013 HBA of F-M Annual Report
by the numbers Flood concerns • $9,000 potential savings per home Homeowner Flood Insurance Affordability Act could save area home owners over $9K per year (on average for a $200,000 home) if they would be required to buy flood insurance due to the Biggert Waters Act. Fire sprinkler mandate • $9,000 to $14,000 potential savings per home Avoiding a fire sprinkler mandate in Minnesota could save $9K per 4,500 sq. ft. home and $14K for rural/lake-area homes.
Energy code savings • $5,500 to $10,000 cost increase averted Success in sustaining the 2009 IRC energy code chapter averted a $5.5K - $10K increase in cost of a new home. Political Action Committee • $18,000 raised • 50 new contributors
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Education by the numbers • Building Contractor Continuing Education: 94 attendees
• Code and Issues Updates: 155 attendees • Electrical Continuing Education: 64 attendees • Lunch Sessions: 205 attendees
• Power Limited Technician Continuing Education: 53 attendees
• Safety Courses: 159 attendees • Other: 9 attendees
636 Members Served 103 Non-Members Served
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he HBA of F-M develops education programs for the Association and provides continuing education credits required by Minnesota for builder licensing. It has a main goal to assist the development, professionalism, and profitability of HBA members and the industry. The HBA of F-M assists its members in developing their professionalism and increasing their business success through education. The Association served over 600 members and 100 non members through its programs last year. We provide classes satisfying education requirements for contractors in several specialties, as well as issuesrelated education for code updates and safety requirements. Four areas of education: 1. Continuing Education required by law 2. Issues-related education 3. Other education to foster professionalism 4. Promotion of NAHB and NDAB designations
Last year, the HBA of F-M wrote a grant providing a 10-hour OSHA safety course and a 30-hour OSHA safety course free to members. These courses normally range from $150 for the 10-hour class to $600 for the 30-hour class.
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2013 HBA of F-M Annual Report
Member Events M
embers who get involved in the HBA of F-M make the most of their membership! The HBA of F-M coordinates member meetings and gatherings designed for networking and information sharing.
Events range from a New Year Celebration to a chili cook-off, the Parade of Homes Celebration to a family picnic. There is something for everyone. In 2013, the Association revamped its most popular social event, the summer golf outing, to include an afternoon flight in June and July. The response was overwhelming with almost 270 golfers over the two dates. Over all, HBA member events attracted nearly 850 attendeees in 2013.
by the numbers • New Year Celebration: 65 attendees • ‘Chilly’ Cook Off: 55 attendees • City Night 95 attendeees
• Parade of Homes Celebration 105 attendees • Golf Outings 268 attendees • Family Picnic 97 attendees
• Annual Meeting 96 attendees
• November Keynote 61 attendees
842 attendees at member events in 2013
2013 HBA of F-M Annual Report
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Public Events by the numbers • Home & Garden Show 9,150 consumers / 331 exhibitors
• Spring Parade of Homes 74 homes / 40 builders • Fall Parade of Homes 43 homes / 26 builders
• Remodeled Home Tour 5 entries / 4 remodelers • Fall Home Show 1,855 consumers / 95 exhibitors
Home Shows attracted over 11,000 consumers, featuring over 400 exhibitors. Parades and Tour featured nearly 125 homes built or remodeled by 70 member companies.
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he Association offers public marketing opportunities through home shows, parades of homes and the Remodeled Home Tour. Our home shows attracted over 11,000 consumers and featured over 400 exhibitors. The parades and tour featured nearly 125 homes built or remodeled by 70 member companies.
The Red River Valley Home & Garden Show has been the premier regional show for home building and yard enthusiasts in North Dakota and western Minnesota for over 50 years. Held at the Fargodome, this show features up to 110,000 sq. ft. of exhibit space showcasing the diverse products and services available in today’s building industry. Educational seminars on home building topics as well as feature presentations by celebrity speakers are held daily. The Fall Home Show is a one-stop shopping opportunity at Scheels Arena that can satisfy all of the consumer’s building and remodeling needs under one roof. This show features exhibits on construction and home improvements like flooring, siding, spas, windows, remodelers, appliances and much more. Experts present seminars on topics such as remodeling and kitchen and bath design. Built with pride by professional builders, contractors and suppliers of the HBA of F-M, the Parade of Homes features a scattered site tour of homes. Using the latest design and building techniques, the Parade offers samples from every market including firsttime, move-up and luxury home buyers. The spring Parade is held over eight days, two four-day weekends, Thursday through Sunday with weekend and evening hours. The fall event is held over two consecutive weekends. Consumers have many opportunities to explore the homes and talk with the builders themselves.
The HBA’s Remodeled Home Tour is the second weekend of the Fall Parade of Homes and features area remodeling projects, offering a venue for remodelers to showcase their work and for home owners to get ideas for updating their living spaces including kitchens, bathrooms, basements and more.
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2013 HBA of F-M Annual Report
Communications T
he HBA of F-M’s communications have a wide reach. HBA of F-M staff members routinely prepare information for members, local consumers, government officials, community leaders and the media.
In regard to member services, information is consistently listed as a top priority for HBA of F-M members. They view the HBA of F-M as a source for relevant information regarding • code changes, • legislative issues, • regulatory updates specific to the home building industry. Consumers look to the Association as a resource • in finding building and home-improvement companies and • when seeking information about working with and choosing these companies. The media uses our member leadership and staff as sources for • relevant building industry stories and to • highlight our community events.
by the numbers Yearly Reach • Weekly email: 48,000 • Website: 41,000
• Directory: 20,000
• Plains Builder: 15,500 • Blog: 4,000
• Social Media: 1,500
• Local Media Contacts: 1,400
One of the HBA’s most popular reports is its quarterly summary of building permits released to members, the public and consumers. 2013 saw record construction activity: through third quarter, Overall construction values surpassed last year’s HBA of F-M Publications Summary third-quarter peak. This brings the area Member Consumer Publication back to levels it hasn’t X X Membership Directory & Consumer experienced since the Guide mid-2000s. X Home Builders Care Newsletter By third quarter, total X For Your Health construction value was X Guides for Public Events already over $523 million, which is the highest posted through the first X Plains Builder three quarters, and supersedes last year’s X X Blog record by just under $90 X Media Relations million. For reference, the X Weekly Email previous third quarter high was in 2006 at $428 X X Social Media million, and current X X Website numbers are almost $100 million higher.
2013 HBA of F-M Annual Report
Frequency Annually Bi-Annually Quarterly Four Per Year (EventDriven) Monthly Bi-Monthly As Needed Weekly Constant Constant
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Health Plan & Benefits by the numbers F-M Home Builders Health Plan & Trust • Lives Covered: 5,782
• Participant Contracts: 3,207 • Total Assets: $10,163,367
• Total Claims Paid in 2013: $9,458,601.51
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argo-Moorhead Home Builders Health Plan & Trust is one of the HBA’s most popular benefits, designed for HBA members to maximize benefits and keep rates affordable. The uniqueness of the plan is the provider-based premiums, allowing members and their employees to review and select the plan and provider that meets their company’s budget. The plan offers health, dental and vision insurance, along with a short-term disability and life insurance policy. The Fargo-Moorhead Home Builders Health Plan & Trust is a self-funded, nonprofit health insurance program available to qualified HBA members. The program offers excellent competitive plans and consistent rate stabilization. Rates are based on the health trust’s own claims experience.
Membership Discounts: The Association offers several opportunities for members to gain visibility and save money in the process including promotional shows and advertising. It provides member discounts in many cases. Website: The website, www.hbafm.com, features a regularly-updated online membership directory. It also provides up-to-date consumer information, member information and a calendar of events.
Contractors Insurance: This special program designed for contractors and subcontractors is endorsed by the North Dakota Association of Builders. Members can insure their property, liability, auto, builders risk, tools and equipment with State Auto Mutual Insurance Company.
Verizon Wireless: Verizon Wireless has teamed up with the HBA of F-M and NDAB to provide special offers to qualifying Builder members, including 22 percent off monthly access calling plan fees, unlimited VZEmail for only $20 per month and 25 percent off eligible Verizon wireless accessories.
Opportunities: Last, but not least! There are great opportunities for members to get involved, like membership meetings, the golf outings and committees. Building relationships means participating in Association activities. Involved members get more value from their membership.
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2013 HBA of F-M Annual Report
Home Builders Care
Foundation
H
ome Builders Care of Fargo-Moorhead Foundation celebrated its 20th anniversary in 2013. Over the past 20 years, HBC has worked hard to be the building industry’s “white hat” and promote the incredible generosity of HBA of F-M members. Here are just a few of its major accomplishments: • Awarded $168,688 in scholarship dollars since 1995 • Supported 204 students through scholarships • Made donations to area organizations of $203,662 over 20 years • Given $646,106 to support a variety of housing-related projects
Home Builders Care of Fargo-Moorhead Foundation provides a positive outlet for the housing industry to give back to the community, building a framework for the future. Looking forward to the next 20 years, workforce development will be a major focus of the Foundation. Currently, HBC is a major supporter of the Health, Tech & Trades Career Expo and helps to plan the Herdina Academy for the Construction Trades. It also partners with the Fargo Motor Patrol on its Annual Fish Fry in the winter and organizing the Charity Ride for Home Builders Care each summer. HBC funded a project for Rebuilding Together Fargo-Moorhead Area, Inc., in early 2013. This project renovated a bathroom to offer greater safety for the home owner. In addition to the donation, HBC board of trustee members spent time on the project and helped to complete it.
The Foundation, HBA of F-M and Remodelers Council wrapped up its first Lake Agassiz Habitat for Humanity Build in 2012 which provided a home for a single mother and her two children. The family has settled in and are enjoying the home in north Fargo.
by the numbers In 2013, Home Builders Care: • Received $23,416 in donations from 26 HBA of F-M members.
• Awarded $10,000 in scholarships to 12 students. Over the past 20 years, Home Builders Care has: • Awarded $168,688 in scholarship dollars since 1995. • Supported 204 students through scholarships.
• Made donations to area organizations of $203,662 over 20 years.
• Given $646,106 to support a variety of housing-related projects.
HBC and the HBA of F-M will sponsor another Habitat build in 2014. This will be the first official Veteran Build taken on by Lake Agassiz Habitat for Humanity. HBC and HBA of F-M leaders are very excited to be a part of this build and provide a home for a worthy veteran.
2013 HBA of F-M Annual Report
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Home Builders Association of Fargo-Moorhead 1802 32nd Ave. S. Fargo, ND 58103 www.hbafm.com | info@hbafm.com (701) 232-5846 | (701) 280-1108 fax est. 1956
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