The
FALL 2023
The Official Publication of the Home Builders Association of Marion & Polk Counties
The City of Salem Payroll Tax Story on Page 8
President’s Message �������������������������������������������������������4 Building Codes to Change ���������������������������������������������5 2024 Home Shows ������������������������������������������������������������ 6 PPE Hazard Assesment ����������������������������������������������� 10 Vital Statistics ��������������������������������������������������������������� 14
CONTENTS / MEMBERSHIP & BOARD
2023 Board of Directors
Contents
OFFICERS
President’s Message ���������������������������������� 4
PRESIDENT
Oleg Foksha, Foksha Homes VICE PRESIDENT
Jordan Schweiger, Good Well Construction SECRETARY/TREASURER
Andrew Wheeler, T. Wheeler Homes ASSOCIATE VICE-PRESIDENT
Santiago Sarmiento, Sarmiento’s LLC IMMEDIATE PAST PRESIDENT
Jason Sawyers, Randy Fultz Custom Homes, LLC FORMER PAST PRESIDENT
Jubal Frost, Focus Development
BOARD MEMBERS Adam Kelley, Neighborly Ventures Alyssa Wavra, Wavra Design Co. Beth Rhoades, C & R Remodeling Connor Reiten, PNGC Power David Qualls, Parr Lumber Fred Martin, F & W Fence Jason Flores, Celtic Homes Jed Bennett, Steve Bennett Construction Jeff Reynolds, Home Fire Stove John Eld, Bonaventure Senior Living Justen Maron, Olsen Communities Natalie Janney, MultiTech Engineering Samantha Crabb, Cherry City Interiors & Design
Association Staff Mike Erdmann, Chief Executive Officer mike@HomeBuildersAssociation.org Haley Hamilton, Director of Shows & Events haley@HomeBuildersAssociation.org April McVay, Director of Member Services april@HomeBuildersAssociation.org Brad Nanke, Director of Safety & Training brad@HomeBuildersAssociation.org Tracy Mitchell, Contract Accountant accounting@HomeBuildersAssociation.org
Home Builders Association of Marion & Polk Counties 2075 Madrona Ave SE Suite 100, Salem, OR 97302
The Spike Club is an exclusive group of members who contribute to the growth of the association by recruiting and retaining members. Spikes maintain a special status, have the respect of their peers as valued members of the HBA and are recognized for their efforts locally and nationally. To become a Spike, bring in six members to the HBA. Applications for prospective members may be obtained from the HBA office, or call to have one sent to the prospective member.
ALL TIME BIG SPIKE 1500+
John Gooley 2704
STATESMAN SPIKE 500+
Ric McNall 809
SUPER SPIKE 250–499
Mike Smith 484 John Mills 441 Rick Massey 436 Dan Dorn 371
Jeffrey Green 368 Chuck Foster 292 Jubal Frost 278 Mike Riddle 262
ROYAL SPIKE 150–249
Greg Conser 249 Steve Johnson 248 Jordan Schweiger 231 Tom Wheeler 210
Don Druliner 203 Randy Fultz 178 Rick Ziebell 173 Ken Hannegan 166
RED SPIKE 100–149
Kelvin Dettwyler 146 Rob Rardin 127
John Hammer 101
GREEN SPIKE 50–99
Matt Holstege 97 Brad Moore 94 Kent Kaufman 89 Rich Kansky 85 Larry Bilyeu 75 Eric Olsen 75 Don Sturgeon 68
Kathy Temple 65 Kerry Kuenzi 63 Eric Templeton 60 Serge Serdsev 58 Mike Smith 56 Patrick Jackson 55 Randy Melton 50
LIFE SPIKE 25–49 Rich Tovar 48 Jim Hobbs 47 Steve Herr 46 Michael Devlin 46 Ryan Bloedel 46 Oleg Foksha 40 David Hafner 39 Jason Sawyers 39 Nolan Fridley 38
Laura Dorn 29 Mark Shipman 29 Hunter Emerick 29 Kevin Stone 28 Randy Reeves 28 Rich Fry 26 Chad Robb 25 Steve Hurley 25 Andrew Wheeler 25
HBA News ��������������������������������������������������� 5 Salem Payroll Tax ��������������������������������������� 8 Safety Update ��������������������������������������������11 Vital Statistics �������������������������������������������� 14
Welcome New & Reinstated Members Ace Pressure Washing Aaron Luthi (971) 701-4770 Spike: Kent Kaufman Churchill Mortgage Katy Canales (503) 385-4040 Coe Construction Co. Kenneth(Ken) Coe (503) 670-7780 Spike: John Gooley Conner Custom Construction Kyle Conner (503) 551-2851 Spike: Mike Riddle C&S Residential Painting Inc Cristy Bermudez (503) 851-7950 Spike: Andrew Wheeler Ironwood Contracting LLC Vince Calderone (971) 707-3458 Spike: John Gooley Luv Painting Inc. Sergy Alagoz (971) 240-7299 Spike:Oleg Foksha MH CUSTOM CABINETRY Steve Holleman (503) 980-9333 Window Supply Co. Brandon Koger (503) 743-1051
BLUE SPIKE 6–24 Kraig Kelly 24 Peter Strauhal 22 Jason Robertson 22 Robert Kleinke 22 Brett Tallan 13 Don Lulay 12 Gary Epping 11 Chad Montgomery 11
Ricky Fast 10 Chris Rasmussen 10 Santiago Sarmiento 9 Jim Sparkman 9 Tracy Belle 8 Kelli Terjeson 7 Dave Van Lydegraf 7 Caleb Remington 6
tel 503-399-1500 | fax 503-399-0651 www.HomeBuildersAssociation.org
The Chalkline is published by the HBA and Mt. Angel Publishing, Inc. Designer: Steve Beckner To advertise, call 541-944-2820 or email jerry.s@mtangelpub.com.
www.HomeBuildersAssociation.org
We are an association of building industry professionals committed to supporting our members. We advocate for balanced, efficient, and responsible development while promoting the social and economic values of homeownership in our community. Fall 2023 | The Chalkline | 3
President’s Message First off, I’d like to start off by saying I hope everyone had a great summer and got to spend time with family and friends during our beautiful warm weather months. Now that summer is over, we are once again going to be having our monthly luncheons. It’s a great way for us to stay informed on current topics and connect with one another as well as others that are not in our business trades. Keep an eye out for upcoming programs from our local HBA related to recruitment and member acquisition. If you’re already a member, make sure to utilize all available benefits. Personally, as a business owner with multiple work vehicles, the fuel discounts alone in the first few months of the year cover my membership dues. There are many other benefits that save us thousands of dollars annually. When speaking with industry peers who aren’t members, inform them about how they can leverage these benefits through classes and various discounts
by Oleg Foksha 2023 HBA President
applicable to different trades in the industry. I encourage everyone to make plans to join us for the end of the year dinner and awards banquet. It’s always a wonderful and fun event. Don’t miss out! I wish everyone continued success and growth as we enter the fall and winter season of 2023. Stay dry! Sincerely,
Oleg Foksha
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HBA NEWS
Oregon’s Building Codes to Change 2023 Oregon Residential Specialty Code (ORSC) Updates Oregon’s residential building code is changing, and both builders and trade contractors will want to pay close attention to when the new code changes will be required. The State of Oregon Building Codes Division recently adopted the 2023 Oregon Residential Specialty Code (2023 ORSC) based on the 2021 International Residential Code. From October 1st of this year through March 30th, 2024, contractors can choose build under the existing code (2021 ORSC) or the new 2023 ORSC. Starting April 1st of next year, contractors must comply with the new 2023 ORSC and the current 2021 ORSC will no longer be in effect. The 2023 ORSC code book is currently being published, and we anticipate that the new code books will be available towards the end of November. As the code book becomes available, the Oregon HBA will be offering both in-person and online training on both significant changes to the code, as well as specific changes to the energy code requirements in Chapter 11. More information will be sent to members once the codebooks are available and classes are scheduled.
2023 Oregon Residential Reach Code Update The Oregon Reach Code is a statewide optional energy construction standard approved by the Oregon Building Codes Division. The Reach Code is separate from the state building code and applicable at the discretion of building designer and contractor. The anticipated Reach Code adoption process period is October 18th, 2023 - June 30th, 2024, with an anticipated code adoption and availability date of July 1st, 2024. The Oregon Residential Reach Code is an option beyond the standard code pathway within Chapter 11 of the 2023 Oregon Residential Specialty Code. Contractors may voluntarily elect to build to Chapter 11’s base guidelines, and local municipalities must allow them to do so. Municipalities may not require adherence to the Reach Code. During the 2023 Legislative Session, Oregon’s legislature passed HB 3409, which included a requirement that the Reach Code be adopted by rule with the approval of the appropriate advisory boards. Any questions or comments on the 2023 energy code updates, including assistance with the six-month grace period, can be directed to OHBA Building Codes Director/Instructor, Rebai Tamerhoulet. Rebai can be reached by phone at 971-332-8408 (office direct), and by email at rebai@oregonhba.com.
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HaganHamilton.com Fall 2023 | The Chalkline | 5
2024 Home Shows We are now reserving spaces for the
2024 Home Shows. Join us for the MidValley Home Show January 12th-14th and/or The Yard, Garden & Home Show March 22nd-24th. To register visit www.homebuildersassociation.org or call Haley at 971-332-1091.
Don’t have plans to
be in the shows but still want to advertise to over 30,000 local homeowners as well as to all of the show attendees? Reserve your space in one or both of the show guides. Limited space available.
www.homebuildersassociation.org 6 | The Chalkline | Fall 2023
www.HomeBuildersAssociation.org
FLEET & COMMERCIAL SALES
MEDIUM DUTY DEALER
Jim Church
Brian Heinrich
jimc@powerautogroup.com
brian@powerautogroup.com
Delana Johnson
Ryan Church
delana@powerautogroup.com
ryan@powerautogroup.com
503-910-7784
503-769-7100
503-504-3629
503-877-7102
POWER FLEET - COMMERCIAL WWW.POWERAUTOGROUP.COM
503-769-7100 www.HomeBuildersAssociation.org
Fall 2023 | The Chalkline | 7
City of Salem Tax on Wages and Self Employment Earnings to Fund Services Question: Shall City impose 0.814% tax on “wages” and “earnings from self-employment” performed within Salem to fund “community safety services?” By James Day City of Salem voters are facing a divisive and controversial choice in the Nov. 7 election. The Salem City Council on a split 5-4 vote passed a payroll tax earlier this year that would tax the incomes of those working in Salem. Opponents of the measure, led by Oregon Business & Industry, an advocacy group that works with the Legislature and state agencies on issues relating to employers in the state, initiated a petition campaign that gathered enough signatures to put the issue before the voters. Measure 24-491, backers say, is needed to help the city pay for police and fire service (city officials have mentioned the possibility of closing two fire stations), the battle against homelessness and library and park programs. It would tax the average Salem hourly wage earner of about $30 per hour a total of approximately $500 per year. It is projected to raise nearly $28 million per year. Opponents say the payroll tax will hurt small businesses and working families and that the city needs to make tougher budgeting decisions instead of passing along the burden to 8 | The Chalkline | Fall 2023
employees and their families. The payroll tax, if implemented, would add burdensome complications for businesses such as those in the building and construction trades and led the Home Builders Association of Marion & Polk Counties to contribute $10,000 to the effort to defeat the measure. “Unlike local income taxes that have been adopted by Metro in the Portland area where individuals are responsible for paying the tax,” said Mike Erdmann, executive director of the association, “in this case employers have to track employee wages, withholding the tax from employee paychecks and remitting to the city on the employees’ behalf.” Another challenge, Erdmann said, is that a significant chunk of Salem-area businesses, such as plumbers, electricians, roofers, contractors, glass and window companies, landscape architects and heating, ventilation and air conditioning firms, work with clients both inside and outside the city limits. “Most construction employers have mobile workforces that spend part of their pay period working in Salem and part www.HomeBuildersAssociation.org
Above left two photos: Salem voters will consider a payroll tax in the Nov. 7 election. Building industry officials think that the measure will pose significant challenges to businesses such as plumbers, electricians and heating, ventilation and air conditioning companies who work jobs both inside and outside the Salem city limits. Photo credit: James Day Above right photo: A Tour of Homes project in South Salem built by Jordan Schweiger of Good Well Construction. Schweiger and others in the building trades think that passage of the city of Salem’s payroll tax will have wide-ranging impacts on housing in the region. Photo Credit: Good Well Construction
working outside Salem,” Erdmann said. “This would create tremendous challenges for smaller construction employers who lack sophisticated systems for tracking the physical location of where an employee’s wages were earned so that the tax could be paid properly. This potentially creates legal liabilities for employers who either under-report or over-report the tax.”
“This tax would be very difficult to track and collect, especially for builders. Builders travel between job sites everyday, often in different cities.” — Jordan Schweiger Good Well Construction Erdmann and home builders association vice president Jordan Schweiger of Good Well Construction both testified at public hearings the Salem City Council held on the tax proposal. “I encouraged the city councilors to see that Salem needs to remain an affordable and attractive place to live, work, and run a small business,” said Schweiger, whose firm develops projects in Salem as well as up and down the valley. “Taxes like this make Salem a less attractive place to live and work. www.HomeBuildersAssociation.org
Plus it would put employers in Salem at a disadvantage when employers are trying to attract talent. Word spreads fast. People see where their paycheck is going, and many would decide they simply didn’t want to pay a premium to work in Salem.” “This tax,” Schweiger said, “would be very difficult to track and collect, especially for builders. Builders travel between job sites everyday, often in different cities. We would have to divide time between jurisdictions and ask our payroll providers to make only hours worked in Salem subject to this new payroll tax.” Also, Schweiger said, in the business sectors such as those noted above, firms might choose to focus on work outside the city limits instead of battling the headaches and complications produced by the Salem city tax. “Initially, the tax will come as a surprise to some builders,” he said. “Over time, as builders have to track time and report payroll across different jurisdictions, some might just decide they’d rather work elsewhere.” Schweiger also said that there are broader issues at play that voters should take into consideration. “The city needs to balance its budget, not put that burden back onto working people,” he said. “People are already having a hard enough time making ends meet. Adjusting to higher prices and interest rates is enough of a challenge without adding another tax into the mix.”
Fall 2023 | The Chalkline | 9
PPE Hazard Assessment
safety
What is PPE? Brad Nanke
Personal protective equipment, or PPE, protects workers from serious workplace injuries or illnesses resulting from physical, electrical, mechanical, chemical, or other workplace hazards. Examples of PPE include hard hats, face shields, goggles, gloves, vests, respirators, safety shoes, and coveralls.
Saif HBA Group Safety Management Consultant
What is a PPE hazard assessment?
• Communicate your selection decisions to each affected employee
A personal protective equipment (PPE) hazard assessment is an evaluation of your workplace that helps you determine what hazards your employees are exposed to and what PPE they need to protect themselves. A hazard assessment should include:
• Ensure the PPE fits each employee • Require your employees to use their PPE when they are exposed to the hazards General industry employers must also prepare a document that says they have done the hazard assessment. The document must include:
• The jobs (or tasks) your employees do. • The hazards your employees are exposed to.
• A heading that says the document is a “certification” of the hazard assessment
• Where the hazards are located. • The likelihood those hazards could injure your employees.
• The name of the workplace evaluated
• The severity of a potential injury.
• The name of the person certifying the hazard assessment was completed
• The types of PPE necessary to protect your employees from those hazards.
• The date of the hazard assessment
Why should you do a PPE hazard assessment?
Oregon OSHA’s hazard assessment rules
There are three reasons: • A hazard assessment will help you find hazards at your workplace. • A hazard assessment will help you determine what personal protective equipment your employees need for protection.
• Construction: 437-003-0134(1), Hazard assessment and equipment selection. Appendix B to Subdivision 2/I has guidelines for conducting a hazard assessment.
• Oregon OSHA’s rules require you do one.
What are Oregon OSHA’s requirements for PPE hazard assessments? If you are a general industry, construction, or agricultural employer you must determine if your workplace has hazards you cannot eliminate or control without PPE. If there are such hazards, you must: • Select the PPE that protects your employees from the hazards
• General industry: 437-002-0134(1), Hazard assessment and equipment selection. Appendix B to Subdivision 2/I has guidelines for conducting a hazard assessment.
• Agriculture: 437-004-1005(2), Hazard assessment and protective equipment selection. Appendix A to Subdivision 4/I has a sample hazard assessment form.
How to do a PPE hazard assessment Do a baseline survey to identify workplace hazards Continued on page 12
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Newsletters & Trade Magazines
your Community Publishing Specialists 503-845-9499 Office: 401 Oak St., Silverton, OR 97381 P.O. Box 927 Mt. Angel, OR 97362 www.mtangelpub.com
Jim Kinghorn • Jimages
www.HomeBuildersAssociation.org
Fall 2023 | The Chalkline | 11
PPE Hazard Assessment
Continued from page 10
A baseline survey is a thorough evaluation of your entire workplace – including work processes, tasks, and equipment – that identifies safety and health hazards. A complete survey will tell you what the hazards are, where they are, and how severe a potential injury could be.
Evaluate your employees’ exposures to each hazard identified in the baseline survey
hazard assessments but must tell each exposed employee about their PPE selection decisions and meet other rule requirements. Contact Brad Nanke at brad@homebuildersassociation.org or at 503-990-9216 if you have questions, concerns, or would like assistance in performing a PPE Hazard Assessment. Credits: Oregon OSHA
Consider the employee’s task, the likelihood the employee would be injured without PPE, and the severity of a potential injury.
Document your hazard assessment For each job assessed, documentation must include the following information: • A heading saying the document is a “certification” of the hazard assessment • The name of the workplace evaluated • The name of the person certifying the hazard assessment was completed • The date of each hazard assessment Use the PPE hazard assessment and certification form on Oregon OSHA’s website to conduct your own hazard assessment. Construction industry and agricultural employers do not have to document their
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CCB# 235232 www.HomeBuildersAssociation.org
Transform your home by changing your window coverings.
Call now for your FREE in-home consultation!
1-800-214-7684 www.budgetblinds.com CCB# 171799
$500 off* *Some Exclusions Apply. Contact Consultant for Details.
Specializing in:
New Construction
Windows & Clean-up
Check out our website for our other services. www.advancedconstructionandbusinessservices.com
PO Box 21473 Keizer, OR 97307 971-218-4708
Sarmiento’s LLC, your premier provider of top-quality roofing and garage door services in the Willamette Valley.
For a free estimate contact us at:
503-559-9334
sarmientosllc@outlook.com • sarmientosllc.com CCB#: 205038
www.HomeBuildersAssociation.org
Fall 2023 | The Chalkline | 13
Vital Statistics
Information Courtesy of Willamette Valley Multiple Listing Service
NEW RESIDENTIAL CONSTRUCTION Units Sold 12 Months to Date Average Sales Price
KEIZER
CENTRAL SALEM
SUBURBAN EAST—N
SUBURBAN EAST—S
SE SALEM
SOUTH SALEM
WEST SALEM
MARION COUNTY
POLK COUNTY
TOTAL
4
20
25
115
65
47
22
87
175
560
$548,975
$521,844
$431,620
$447,913
$505,021
$651,088
$761,426
$518,961
$503,461
$514,942
Average Square Footage
1,880
1,934
1,517
1,921
1,878
2,170
2,778
2,003
1,718
1,902
Average Cost per Square Foot
$293
$269
$281
$236
$289
$298
$273
$266
$294
$275
Average Days on the Market
87
169
133
83
161
154
156
129
186
146
Currently Active Listings
0
8
3
6
18
18
3
19
79
154
Sold Units-12 Months to Date
Months of Inventory on Market
Top Area Builders RANK
BUILDER
PERMITS*
1.
DR Horton Inc.
117
2.
Lennar NW Inc
94
3.
2020 Construction Group
59
4.
Comfort Homes
48
5.
Fowler Homes Inc.
41
6.
Forrest Ridge Homes
39
7.
Stafford Homes & Land
35
8.
Hayden Homes LLC
17
9.
West Coast Home Solutions
14
10.
Banner Homes
10
Data for all areas of Marion and Polk Counties. October 1, 2022 – September 30, 2023. Data compiled from building permits applied for through Salem, Marion County, Polk County, Woodburn, Monmouth, Dallas and Independence building departments.
AmeriTitle is grateful to our builder and developer partners who work hard to meet the high demand for housing throughout the Willamette Valley. We are proud to work hard beside you, providing caring, quality title and escrow services.
14 | The Chalkline | Fall 2023
www.HomeBuildersAssociation.org
HBA members...
Provide BIIT insurance for your employees. Quality, affordable healthcare options through Building Industry Insurance Trust (BIIT).
Connect with our advisors.
To learn more or get a quote, visit biit.huggins.com or call 503-585-2211.
Home Builders Association of Marion & Polk Counties
PRSRT STD US POSTAGE PAID Albany, OR Permit No.188
2075 Madrona Ave SE # 100 Salem, OR 97302 435 First Ave. W., Albany, OR 97321
Better Service Better Quality Better Pricing
Serving the Northwest Since 1991. Celebrating 30 years. Salem • Portland • Bend • NW OR • SW WA • Florence
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Medford • Eugene • Tri-Cities • Idaho • Seattle • Utah
503-581-8787
www.oregontruss.com