2015 Annual Report by Home Builders Association of F-M

2015

Annual Report

Table of Contents About the HBA.................... 2 Members............................ 3 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 2015 BOARD OF DIRECTORS President Clay Dietrich President Elect Tom Spaeth Treasurer Tyrone Leslie Associate Vice President John Koerselman Secretary Paul Krabbenhoft Directors Jason Eid Harry Gilbertson Darrick Guthmiller Ursula Hegvik Kimberly Krueger Tehan Terry Lipp Sylvia Lunski Dustin Murray Gary Orth Todd Rasmussen Broc Roberson Robin Swanson Past President Carlita Dietz Senior Life Director Gerald Eid Life Directors Don Dabbert, Jr. John Gunkelman Ken Krajsa Dan Lindquist John Mahan NDAB Ex-Officio Directors State Representative John Gunkelman Associate National Director Ken Krajsa Treasurer Dan Lindquist

the

HBA

The HBA of F-M promotes an environment in which members and their businesses can prosper.

he Fargo-Moorhead metro community continued outstanding growth and development in 2015. Following 2014, which had the highest housing permit level since 2005, the communities nearly matched that activity in 2015. Workforce development and advocating for the F-M Diversion Project and permanent flood protection remained at the top of the HBA of F-M’s and Home Builders Care of F-M Foundation’s priorities in 2015. 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 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 Staff

Chief Executive Officer.....................................................................Bryce Johnson brycea@hbafm.com Executive Vice President...................................................................... Krista Mund kristam@hbafm.com Director of Accounting & Records.................................................. Amanda Ohlsen amanda@hbafm.com Director of Development & Education.............................................. Jenny Erickson jenny@hbafm.com Senior Events & Marketing Coordinator........................................ Allison Weckman allisonw@hbafm.com Communications Coordinator............................................................ Chelsea Smith chelsea@hbafm.com Office Coordinator...................................................................................Tahra Doll tahra@hbafm.com Membership & Marketing Coordinator......................................... Sami Eidenschink sami@hbafm.com

2015 HBA of F-M Annual Report

Membership T

he heart of the Association remains within its members and its core of a volunteer board of directors and committees. In 2015, the HBA of F-M had a member retention goal of just over 90 percent (one of the highest in the nation) and welcomed 69 new member companies. 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.”

Membership

Committees: Education, Events, Home & Garden Show, Membership, PAC, Parade of Homes, Public Issues, Remodelers Council, Workforce Development

Board of Directors

President: Dan Parrow ISR Homes

2015 F-M Home Builders Health Plan & Trust Chair: Rob Lyngstad Matrix Properties Corporation

2015 committee chairs

Events Chair: Stacy Herbel Gate City Bank

Home & Garden Show Chair: Ray Blaha Western Products, Inc.

Parade of Homes Chair: Christina Mehl Design Direction, Inc.

Chief Executive Officer

Home Builders Care Foundation

Staff: Accounting, Communications, Events, Development, Education, Marketing, Membership, Public Affairs

2015 HBA of F-M Annual Report

2015 Home Builders Care of F-M Foundation

Membership Chair: Dawn Schmitt Braaten Cabinets, Inc.

Executive Committee

HBA of F-M

Total Members: 879 Builders: 208 Associates: 610 Affiliates: 61 Retention Rate: 90.3 percent Members Recruited: 69 Total Committee Members: 85

Education Chair: Dave Anderson Dave Anderson Construction

Organizational Chart

F-M Home Builders Health Plan

by the numbers

»» »» »» »» »» »» »»

Public Issues Chair: Nancy Kelly Labor Masters

Remodelers Council Chair: Russ Richards Rebuilding Together FargoMoorhead Area, Inc.

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 2015:

Dietrich

Krabbenhoft

Heritage Homes (Tyrone Leslie)

The Association presents its Cornerstone Award to a member for his or her lifetime achievement of tirelessly dedicating him or herself to the building industry. It was presented to Ken Krajsa, Bell State Bank & Trust, in 2015. Candidates for the Cornerstone Award can be suggested by the HBA of F-M staff for consideration by a committee consisting of past recipients of the Builder and Associate of the Year awards.

Krajsa

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. Clay Dietrich, Dietrich Homes, Inc., received Builder of the Year, and Paul Krabbenhoft, Coldwell Banker First Realty, received Associate of the Year. Dietrich 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 Heritage Homes which also received the state award from the North Dakota Association of Builders. 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. Dan Beecher, Foam Doctor’s, LLC, received the 2015 award. The National Association of Home Builders’ Association Excellence Awards is an annual program designed to recognize the outstanding accomplishments of state and local home builders’ associations and executive officers in the field of association management. In 2015, the HBA of F-M received the “Best Workforce Development Plan Implemented - Over 600 Members” for its role in the Herdina Academy for the Construction Trades.

Beecher

2015 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 - In 2015, the HBA of F-M supported permanent flood protection and the F-M Diversion for the metro-wide area. Leaders and staff are active in the Business Leaders Flood Task Force which is focused on sharing a positive message for permanent flood protection within the community. »» Oxbow Injunction - In 2015, construction activity was impacted for three months in Oxbow due to an injunction by a federal judge involving the homebuilding and reconstruction to make way for Oxbow’s ring dike. Fifteen homebuilding companies were affected, with an estimated 20 or more trade contractors, plus 15 suppliers, impacted per builder. The HBA and its member leaders were instrumental in behind-the-scenes work to formulate a declaration of impact on our industry for the judge who issued the injunction. Ultimately the HBA’s work helped, and the judge allowed construction to continue. »» Floodproof Basement Design - The city of Fargo required a new design for floodproof basements that helped the city retain its exception with Federal Emergency Management Agency to build basements in homes. The HBA commissioned a standard drawing for wall bracing which can be used as an alternative method. It’s estimated that, on a 1,900-sq.-ft. home, the drawing saves a framing crew about three days of work, or $3,600 in labor cost. Fire Sprinker Requirements - In North Dakota, a sprinkler bill was defeated that would have impacted residential construction encompassing two units or more. In Minnesota, HBA of F-M worked with its building industry partners to address the state’s fire sprinkler mandate legislatively, and met with the Governor and fire safety-related organizations. Ultimately, the Supreme Court ruled that the Minnesota Department of Labor and Industry’s sprinkler rule was invalid for single family homes, which was a major win.

by the numbers

Flood concerns »» 15 home builders and over 300 related businesses felt relief due to the HBA’s efforts in Oxbow related to reconstruction activities. »» $3,600 in labor cost saved on a 1,900 sq. ft. home due to HBA’s floodproof basement design. Fire Sprinklers »» $7,000-$15,000 saved by helping to stop fire sprinkler requirements in housing. Code Issues »» $500 - $5,000 saved by alternate insulation method in Moorhead. »» $600 - $1,500 saved by negotiating a longer sewer pipe extension in West Fargo. Political Action Committee »» HBA of F-M raised just under $25,000 for PAC.

Codes and Regulation - The HBA of F-M was successful in the following requests: »» Alternate methods for insulating basements in Moorhead due to code changes with implementation of the 2015 Minnesota Residential Energy Code. The new code did not consider our building practices due to heavy clay soil in the Red River Valley. »» A change with the city of West Fargo to allow a longer sewer pipe extension past the utility easement in new residential developments. The request was made to increase safety and work efficiencies.

2015 HBA of F-M Annual Report

Education by the numbers

»» Lunch Sessions: 283 attendees »» Safety Courses: 73 attendees »» Plumbing Contractor Continuing Education: 44 attendees »» Building Contractor Continuing Education: 66 attendees »» Power Limited Technician Continuing Education: 45 attendees »» Code and Issues Updates: 143 attendees »» Electrical Continuing Education: 28 attendees »» Other: 8 attendees 603 Members Served 62 Non-Members Served

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 is to assist the development, professionalism, and profitability of HBA members and the industry. The Association served over 600 members and nearly 65 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 few 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.

2015 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” CookOff, the Parade of Homes Celebration to a family picnic. In 2015, the Association continued its professional-level 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 once again, 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: 162 attendees »» “Chilly” Cook-Off: 73 attendees »» Parade of Homes Celebration: 155 attendees »» Golf Outings: 246 attendees »» Family Picnic: 125 attendees »» Awards Gala & Annual Meeting: 212 attendees 973 attendees at member events in 2015

2015 HBA of F-M Annual Report

Public Events by the numbers

»» Home & Garden Show 7,776 consumers / 323 exhibitors »» Spring Parade of Homes 90 homes / 47 builders »» Fall Parade of Homes 56 homes / 32 builders »» Remodeled Home Tour 4 projects / 2 remodelers

he Association offers public marketing opportunities through home shows, parades of homes and the Remodeled Home Tour. Our Home & Garden Show attracted over 7,700 consumers and featured over 320 exhibitors. The parades and tour featured nearly 150 homes built or remodeled by 81 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 and workshops are held daily. 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. 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.

2015 HBA of F-M Annual Report

Communications T

he HBA of F-M’s communications had a wide reach in 2015. HBA of F-M staff members routinely prepare information for members, local consumers, government officials, community leaders and the media. The HBA of F-M launched a new, refreshed website in 2015 that incorporates several new features including a job bank, online application and membersonly section filled with valuable information. 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. The media uses our member leadership and staff as sources »» for relevant building industry stories and »» to highlight our community events.

Yearly Reach

»» Public Event Guides: 77,982 »» Website: 74,712 »» Social Media HBA Facebook: 65,930 HBA Twitter: 22,808 »» Weekly Email: 11,284 »» Plains Builder: 6,245 »» Directory: 6,024 »» Permits Plus: 1,707 »» Local Media Contacts: 1,035

One of the HBA’s most popular reports is its summary of building permits released to members, the public and consumers. In terms of construction value, last year’s housing pace was the second-strongest since 2005. The Association increased the frequency from quarterly to monthly in 2015.

Members

by the numbers

HBA communications reached nearly 270,000 in 2015.

HBA of F-M Publications Summary

Consumers Publication X

Frequency

Membership Directory & Consumer Guide

Annually

Home Builders Care of F-M Foundation Newsletter

Bi-Annually

For Your Health Newsletter

Quarterly

Public Event Guides for Home Shows and Parade/Tour Magazines

Four Per Year (EventDriven)

Plains Builder

Monthly

Blog

Bi-Monthly

Permits Plus

Bi-Montly

X X X

X X

Weekly Email

Weekly

Media Relations

As Needed

Social Media

Constant

Website

Constant

2015 HBA of F-M Annual Report

Health Plan & Benefits by the numbers

F-M Home Builders Health Plan & Trust »» Employer groups: 417 »» Participant Contracts: 3,787 »» Total Claims Paid in 2015: Over $23 million

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: HBAFM.COM (newly refreshed in 2015) features a regularly-updated online membership directory, up-to-date consumer information, member information, a calendar of events, a job bank, online application and members-only section filled with valuable information. 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 on cellular services and Verizon Wireless accessories. EAP Consortium: All members can access discounts to human resources benefits through our Employee Assistance Program Consortium with The Village Business Institute and flexible benefits through Discovery Benefits. 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.

2015 HBA of F-M Annual Report

Home Builders Care

Foundation

ver the past 22 years, Home Builders Care of F-M Foundation has worked hard to be the building industry’s “white hat” and showcase 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. HBC expanded its scholarship program in 2015 and supported housing-related organizations with over $10,000 in donations, as it prepared for a build with Homes for our Troops in 2016. 2015 was an organizational year as Home Builders Care worked with community partners like educational institutions, the Greater Fargo-Moorhead Economic Development Corporation, as well as HBA members to examine strategies to address the local workforce shortage. Currently, HBC is a major supporter of the Health, Tech & Trades Career Expo and the Herdina Academy for the Construction Trades. Home Builders Care has also transitioned into coordinating the Fargo Motor Patrol’s Annual Fish Fry in the winter to raise funds for its programs.

2015 HBA of F-M Annual Report

by the numbers

In 2015, Home Builders Care: »» Supported housing-related organizations with over $10,000 in donations. »» Awarded $23,400 in scholarships to 13 students and three Student Chapters. Over the past 22 years, Home Builders Care has: »» Awarded $207,188 in scholarship dollars. »» Supported 231 students through scholarships. »» Made donations of nearly $225,000. »» Spent over $650,000 to support a variety of housingrelated projects.

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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