2014
Annual Report
Table of Contents About the HBA.................... 2 Members............................ 3 2014 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 2014 BOARD OF DIRECTORS President Carlita Dietz President Elect Clay Dietrich Treasurer Tom Spaeth Associate Vice President Terry Lipp Secretary John Koerselman Directors Kenneth Andersen Stan Birky Harry Gilbertson Paul Krabbenhoft Dan Lindquist Sylvia Lunski Nancy Michelsen Dustin Murray Gary Orth Todd Rasmussen Robin Swanson Past President Darrick Guthmiller Senior Life Director Gerald Eid Life Directors Don Dabbert, Jr. John Gunkelman Ken Krajsa Dan Lindquist John Mahan NDAB Ex-Officio Directors Immediate Past President Jason Eid State Representative John Gunkelman 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.
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record-breaking year in terms of construction activity, 2014 saw Dilworth, Fargo, Moorhead and West Fargo collectively bring in close to $1.4 billion through nearly 4,500 building permits. Housing starts hit their highest level since 2005. Along with this tremendous growth came labor issues. The Home Builders Association of Fargo-Moorhead, and its charity, Home Builders Care of F-M Foundation, focused on workforce development, stepping up efforts to attend job fairs and assisting with the North Dakota Building Officials Association Career Day. The HBA of F-M also remained active with our local Student Chapters of the National Association of Home Builders and played key roles in the Herdina Academy for the Construction Trades and Health, Tech & Trades Career Expo. All of these efforts promote the building industry to young people. For the future, workforce remains a top priority.
About the HBA... HBA 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 HBA Staff home building and remodeling Executive industry and those firms that Vice President.................. Bryce Johnson believe in providing fair, honest brycea@hbafm.com and quality services. Communications Three memberships in one! Manager............................... Krista Mund Upon joining the HBA of kristam@hbafm.com F-M, members also hold Director of membership with North Dakota Accounting & Records.... Amanda Ohlsen Association of Builders and amanda@hbafm.com National Association of Home Director of Development Builders. The HBA of F-M also & Education......................Jenny Erickson has a relationship with Builders jenny@hbafm.com Association of Minnesota for licensed builders in Minnesota. Membership & Marketing By participating in the Coordinator....................Allison Weckman Association, members can allisonw@hbafm.com enhance their business Events Coordinator........Lindsey Nogosek opportunities and gain a lindsey@hbafm.com competitive edge by staying Communications exposed to the most current & Office Coordinator......... Chelsea Smith information and issues. Being involved in Association activities chelsea@hbafm.com is the key to getting the most from membership.
2014 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 2014, the HBA of F-M met its member retention rate goal of 92 percent (one of the highest in the nation) and exceeded its new member recruitment goal with 88 new members for the year. 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.”
HBA of F-M Organizational Chart Membership
Education, Events, Membership, PAC, Parade of Homes, Public Issues, Remodelers Council, Workforce Development
Health Trust: Plan Management
Board of Directors
Home Builders Care Foundation
Executive Committee Bryce Johnson Executive Officer/ Executive Vice President HBA Staff Accounting, Communications, Events, Development, Education Membership, Public Affairs
2014 HBA of F-M Annual Report
Workforce Development
by the numbers
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Total members: 803 Builders: 205 Associates: 598 Affiliates: 46 Retention Rate: 91.7 percent Members Recruited: 88 Total Committee Members: 85
2014 Home Builders Care of F-M Foundation
President: Mike Anderson Bierschbach Equipment & Supply
2014 F-M Home Builders Health Plan & Trust Chair: Rob Lyngstad Matrix Properties Corporation
2014 committee chairs
Education Chair: Stephanie Lindemann Revive Contracting Events Chair: Diana Stead Stone Holding Company Membership Chair: Drew Likness Chase Realty PAC Chair: Tyrone Leslie Heritage Homes Parade of Homes Chair: Kimberly Krueger Tehan Krueger Construction, Inc. Public Issues Chair: Paul Lindemann Lindemann Finish Carpentry, Inc. Remodelers Council Chair: Tom Spaeth Accent Contacting
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2014 Accolades T
he HBA of F-M regularly recognizes members for their achievements and for their commitment to the Association and community. Here is a summary from 2014:
Builder of the Year (right) Carlita Dietz, Jay Dietz Construction, Inc. Associate of the Year (left) Robin Swanson, Superior Insurance
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. Carlita Dietz, Jay Dietz Construction, Inc., received Builder of the Year, and Robin Swanson, Superior Insurance, received Associate of the Year. Both went on to win the state award with NDAB as well. 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., for the second year in a row. The company also received the state award from the North Dakota Association of Builders.
BEAM Award (Builders Engaging Associate Members) Kochmann Brothers Homes, Inc.
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. Josh Amundson, FM Home & Patio, Inc., received the 2014 award. The HBA of F-M is honored to be part of a “Large Local Association” group consisting of 14 local Associations from across the country that have at least 1,000 members, or manage multiple organizations with a staff of six or more. HBA of F-M Executive Officer Bryce Johnson hosted fellow executives from the likes of Atlanta, Dallas, Portland, Kansas City and New Orleans for relationship building and idea sharing.
Extra Mile Award Josh Amundson, FM Home & Patio, Inc.
BAM’s President’s Award Clay Dietrich Dietrich Homes, Inc.
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Last year, the HBA of F-M continued working with the Builders Association of Minnesota to fight fire sprinkler mandates for homes over 4,500 square feet. BAM recognized HBA President Elect Clay Dietrich with its President’s Award for his assistance and expertise in the fire sprinkler fight. This award is the highest honor that a non-member can receive from BAM.
2014 HBA of F-M Annual Report
Advocacy T
he HBA of F-M’s most valuable services to the building industry are advocacy and government relations for members and fighting to keep the dream of homeownership 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. Flooding - The HBA of F-M continued support of permanent flood protection and the F-M Diversion as well as fighting to maintain the area’s basement exception. The Association assisted the city of Fargo in coordinating a report submitted to FEMA presenting reasons why it should extend the exception. Members provided supplemental information outlining the significant impacts that losing the exception would have. The financial impacts, for example, on an entry-level home are an additional $29,500, which would “price out” over 5,700 households from buying in the Fargo market. Political connections - Candidate Forums and legislative socials are an effective way to connect with lawmakers and local leaders. The Association hosted Candidate Forums for Fargo mayoral and commission races in both Fargo and West Fargo. Members also hosted forums for current North Dakota legislators to connect on issues the industry may face in the 2015 session. Last, the HBA hosted a social with current elected officials and hopefuls running for office in both Minnesota and North Dakota legislatures. Through these efforts, we connected with over 35 community and state leaders. Ballot issues - The HBA of F-M was an active member of both the “Vote Yes on Measure 2 Coalition” and the “North Dakotans for Common Sense Conservation Coalition” that supported and opposed Measures 2 and 5, respectively. Voters passed Measure 2, which will constitutionally prohibit the state of North Dakota, or any political subdivision of the state, from imposing mortgage taxes or any sales or transfer taxes on the mortgage or transfer of residential, commercial or agricultural property. North Dakota voters overwhelmingly voted against Measure 5 which would have created a massive conservation fund from 5 percent of the oil extraction tax, drawing funding away from infrastructure, education and other needs in the state.
by the numbers
Flood concerns -- $29,500-$42,500 potential savings per home Additional cost per home if Fargo loses FEMA’s basement exception. Political connections -- Connected with over 35 leaders through Candidate Forums and legislative socials. Ballot issues -- Saved thousands of dollars in transfer taxes by passing Measure 2. -- Defeated Measure 5 which would have diverted funds from infrastructure needs. Political Action Committee -- Ninety-six percent of candidates supported in North Dakota succeeded -- BUILD-PAC saw a 95 percent success rate.
PAC - The national and state political action committees provide a critical piece of our Association’s advocacy efforts. North Dakota Association of Builders’ PAC (NDAB-PAC) supported 46 candidates in the November election, with 44 succeeding in their bids for office. National Association of Home Builders’ PAC (BUILD-PAC) saw a 95 percent success rate in the election of the candidates it supported. To cap it off, North Dakota had the highest number of “Delegates,” $20-contributors, to BUILD-PAC in the country.
2014 HBA of F-M Annual Report
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Education by the numbers
-- Lunch Sessions: 355 attendees -- Safety Courses: 178 attendees -- Plumbing Contractor Continuing Education: 82 attendees -- Building Contractor Continuing Education: 71 attendees -- Power Limited Technician Continuing Education: 53 attendees -- Code and Issues Updates: 32 attendees -- Electrical Continuing Education: 30 attendees -- Other: 4 attendees 712 Members Served 93 Non-Members Served
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he HBA of F-M develops education programs for the industry and provides continuing education credits required by Minnesota for builder licensing. The main goal to assist the development, professionalism, and profitability of HBA members and the industry. The Association served over 700 members and nearly 100 nonmembers through its programs last year. It provided classes satisfying education requirements for contractors in several specialties, as well as issues-related 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 The last two years, the HBA of F-M received 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.
2014 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.
Member meetings range from a New Year Celebration to our “Chilly” Cook-off, the Parade of Homes Celebration to a family picnic. In 2014, the Association upgraded its member meetings by incorporating professional audio-visual equipment at three events and higher quality videos and slide shows offering a memorable experience for attendees. It paid off, as attendance increased across the board at those member meetings. The HBA of F-M offers two Golf Outings each summer that are the Association’s most popular networking opportunity. Members enjoy getting together for a stress-free afternoon accompanied by great food and prizes.
by the numbers
-- New Year Celebration: 135 attendees -- ‘Chilly’ Cook Off: 79 attendees -- Parade of Homes Celebration 122 attendees -- Golf Outings 232 attendees -- Family Picnic 106 attendees -- Awards Gala & Annual Meeting 165 attendees 839 attendees at member events in 2014
2014 HBA of F-M Annual Report
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Public Events by the numbers
-- Home & Garden Show 8,852 consumers / 334 exhibitors -- Fall Home Show 1,055 consumers / 86 exhibitors -- Spring Parade of Homes 71 homes / 35 builders -- Fall Parade of Homes 48 homes / 29 builders -- Remodeled Home Tour 10 projects / 6 remodelers Home Shows attracted nearly 10,000 consumers, featuring 420 exhibitors. Parades and Tour featured nearly 130 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 nearly 10,000 consumers and featured 420 exhibitors. The parades and tour featured nearly 130 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 was discontinued in 2014 to allow concentration on expanding the Remodeled Home Tour. 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 first-time, move-up and luxury home buyers. The spring Parade is held over two four-day weekends, Thursday through Sunday, with evening and weekend 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 held in conjunction with 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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2014 HBA of F-M Annual Report
Communications T
he HBA of F-M’s communications had a wide reach in 2014. 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 and -- 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.
by the numbers
Yearly Reach
-- Public Event Guides: 138,835 -- Social Media HBA Facebook: 85,765 HBA Twitter: 18,291 -- Website: 45,620 -- Weekly Email: 11,960 -- Plains Builder: 7,145
The media uses our member leadership and staff as sources -- for relevant building industry stories and -- to highlight our community events.
-- Directory: 5,864
One of the HBA’s most popular reports is its quarterly summary of building permits released to members, the public and consumers. In terms of construction value, last year was record-breaking with Dilworth, Fargo, Moorhead and West Fargo collectively bringing in nearly $1.4 billion through 4,436 building permits.
-- Local Media Contacts: 1,035
Members X X X
X X X X X
-- Blog: 4,671 HBA communications reached nearly 320,000 in 2014.
HBA of F-M Publications Summary
Consumers Publication X Membership Directory & Consumer Guide Home Builders Care of F-M Foundation Newsletter For Your Health Newsletter X Public Event Guides for Home Shows and Parade/Tour Magazines Plains Builder X Blog X Media Relations Weekly Email X Social Media X Website
2014 HBA of F-M Annual Report
Frequency Annually Bi-Annually Quarterly Four Per Year (Event-Driven) 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 -- Employer groups: 421 -- Participant Contracts: 3,546 -- Total Claims Paid in 2014: Over $15 million
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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 regularlyupdated 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 member meetings, the golf outings and committees. Building relationships results from participating in Association activities. Involved members get more value from their membership.
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2014 HBA of F-M Annual Report
Home Builders Care
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Foundation
ver the past 21 years, Home Builders Care of F-M Foundation has worked hard to be the building industry’s “white hat” and promote the incredible generosity of HBA of F-M members.
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 the Herdina Academy for the Construction Trades. It also partners with the Fargo Motor Patrol on its Annual Fish Fry in the winter. HBC funded a project for Rebuilding Together Fargo-Moorhead Area, Inc., in 2014. 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 second Lake Agassiz Habitat for Humanity Build in 2014 which provided a home for a veteran and her daughter. The family has settled in and is enjoying the home in Moorhead. HBC and HBA of F-M have expanded workforce development through events like the North Dakota Building Officials Association Career Day and other job fairs.
2014 HBA of F-M Annual Report
by the numbers
In 2014, Home Builders Care: -- Supported the 2014 build with Lake Agassiz Habitat for Humanity, gathering $16,000 in donations, material and labor. -- Supported a Rebuilding Together project with $3,000. -- Awarded $10,000 in scholarships to 13 students. Over the past 21 years, Home Builders Care has: -- Awarded $187,788 in scholarship dollars since 1995. -- Supported 218 students through scholarships. -- Made donations to area organizations of $220,000 over 20 years. -- Given $678,000 to support a variety of housing-related projects.
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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
PRESORTED STANDARD US POSTAGE PAID FARGO ND PERMIT NO 1387