Chalkline Fall 2016 by MAP Publications

The

FALL 2016

The Official Publication of the Home Builders Association of Marion & Polk Counties

LABOR SHORTAGE Contractors struggle to fill high-paying positions ........................................6 40th Annual Mid-Valley Home Show ..................... 13 New Floodplain Rules Restrict Development ..... 16

CONTENTS / MEMBERSHIP & BOARD

2016 Board of Directors

Contents

OFFICERS PRESIDENT

Phil Klaus, Spectra Construction VICE PRESIDENT

Kent Kaufman, Kaufman Homes, Inc. SECRETARY/TREASURER

Matt Holstege, MC Northwest ASSOCIATE VICE-PRESIDENT

Laura Dorn, Berkshire Hathaway Real Estate Prof. IMMEDIATE PAST PRESIDENT

Eric Olsen, Olsen Design & Development FORMER PAST PRESIDENT

Larry Bilyeu, Bilyeu Homes OHBA VICE-PRESIDENT

Ryan Bloedel, Bloedel Custom Homes

BOARD MEMBERS Rod Ashford, Ashford Homes Steve Hurley, Banner Homes Jillian Renner, Golden Rule Remodeling & Design Mike Riddle, Mike Riddle Construction, LLC Stu VanWyngarden, Portland General Electric Alex Labate, The Marble Center Scott Woodward, Woodward Heating, Inc. Brett Tallan, M.J. Tallan Construction Jayson Valech, Artisan Custom Homes Phil Fitzner, Power Auto Group Michael Poissant, AKS Engineering & Forestry Marilyn Jones, Consolidated Supply

Association Staff Mike Erdmann, Chief Executive Officer mike@HomeBuildersAssociation.org

Jeni Huntington, Director of Events jhuntington@HomeBuildersAssociation.org

Carrie Daye, Director of Member Services carrie@HomeBuildersAssociation.org

Shannon Baughman, Administrative Assistant shannon@HomeBuildersAssociation.org

David Davidson, Safety Management Consultant david@HomeBuildersAssociation.org

Tracy Mitchell, Contract Accountant accounting@HomeBuildersAssociation.org

Home Builders Association of Marion & Polk Counties 385 Taylor St NE, Salem, OR 97301 tel 503-399-1500 | fax 503-399-0651 www.HomeBuildersAssociation.org

The Chalkline is published by the HBA and Mt. Angel Publishing, Inc. To advertise, call 541-944-2820 or write jerry.s@mtangelpub.com. www.HomeBuildersAssociation.org

President’s Message �� 5 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 2053

STATESMAN SPIKE 500+ Ric McNall 790 Dan Dorn 351 Dean Kaufman 299 Jeffrey Green 281 Chuck Foster 256

ROYAL SPIKE 150–249 Jubal Frost 238 Steve Johnson 220 Don Druliner 198

Tom Wheeler 167 Ken Hannegan 153 Rick Ziebell 152

RED SPIKE 100–149 Kelvin Dettwyler 140 Randy Fultz 138 Matt Sandstrum 114

Rob Rardin 113 Tim Nissen 112

GREEN SPIKE 50–99 Jerry Page 93 John Hammer 91 Larry Bilyeu 75 Rich Kansky 77 Mike Riddle 66 Darand Davies 66

Dennis Downey 64 George Suniga 63 Bob Cavell 63 Matt Endler 57 Mike Smith 56 Jeannette Moore 54

LIFE SPIKE 25–49 Eric Olsen 48 Kerry Kuenzi 47 Steve Herr 46 Chris Pfeifer 42 Brad Moore 42 Jim Hobbs 40 Patrick Jackson 40 Kent Kaufman 40

Ryan Bloedel 39 Randy Melton 39 Tim Youngkin 34 Tim Kelsh 34 Don Sturgeon 29 Chris Rasmussen 28 Eric Templeton 28 Rich Fry 26

BLUE SPIKE 6–24 Rich Clausen 23 David Hafner 22 Laura Dorn 19 Kraig Kelly 19 Kevin Stone 19 Stu Vanwyngarden 18 Mark Shipman 20 Jason Robertson 18 Randy Reeves 18 Robert Kleinke 16 Hunter Emerick 15 Peter Strauhal 15 Don Lulay 12

HBA News Banquet �� 9 40th Annual Mid-Valley Home Show ��10 Safety Update: Fall Protection Changes �� 13 2017 International Builders’ Show �� 15 New Floodplain Rules �� 16 Safety Training Registration �� 17

OHBA News Tax Threatens Consumers, Builders �� 18 Safety Update: Accident Report �� 19 Vital Statistics �� 21

SUPER SPIKE 250–499 Mike Smith 415 Rick Massey 412 Tim Mametieff 398 Mike Meaghers 365 John Mills 363

Feature Story: Labor Shortage �� 6

Ricky Fast 10 Phillip Pahlisch 10 Jim Sparkman 8 Tim Roth 8 Caleb Remington 14 Kimberly Hosmer 9 Mike Giles 8 Mark Wulf 8 Gary Epping 7 Alan Wilding 6 Blake Bilyeu 6 Matt Holstege 6 Brent Pence 6

HBA Events Calendar �� 22

New & Reinstated Members HomeSmart Realty Group Dave Lambert (971) 599-5865 Spike: Don Sturgeon Jack’s Overhead Door, Inc. Becky McKenzie (503) 639-4440 Relaxation Concepts, Inc. dba Marquis Spas Steve Salter (503) 580-9586 Security Monster Stephanie Simon (541) 342-8111 Spike: Brent Pence

Dropped Members Do you know or do business with any former members of the association? If so, give them a call and encourage them to maintain their HBA membership. You’ll get a Spike Credit, plus help keep the association strong.

Bridgewood Builders Aaron McIntyre (503) 932-7794 CL Rose Construction Co. Chuck Rose (503) 873-4864 Columbia Bank Ross Masters (503) 603-8030 EG Drywall Eduardo Gonzales (503) 576-0406 Minet Fiber Jason Saunders (503) 837-0703 Santiam Barns & Supply, Inc. Kevin Fredinburg (503) 393-0017 Sughrue’s Woodworking, Inc. David Sughrue (503) 399-0822 Wildcat Building Company Steve Reimann (503) 932-1888

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 2016 | The Chalkline | 3

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PRESIDENT’S MESSAGE

On Tiny Houses

President’s Message by HBA President Phil Klaus

I’m having a tough time understanding the logic behind the so-called “tiny house” craze. I have to admit all my exposure has been courtesy of the media, but what I’ve seen so far makes no sense to me. New, low-cost, starter homes, the kind Millennials are looking for, and whose earning power has a ways to go before it reaches its peak, are a thing of the past. Just because their earnings are modest many still desperately desire a place they can call their own, complete with a secure yard for a child and a pet, a place for a car, at least a little extra storage space and an energy-efficient furnace. Even if there was such a thing, the obstacles to getting one are many, including out-of-sight, insane prices, tough mortgage regulations with challenging down payment requirements, and more-oftenthan-not oppressive personal debt (car loans, outstanding credit card balances, and—for some—burdensome student loans). So enter the tiny house. At first glance the idea seems like the answer to Millennials’ prayers. Or is it? Sure, the initial cost of the tiny house is less, but less than what? An 8’ by 12’ prison cell costs more, is smaller (96 square feet or less), is hurting for amenities, may have questionable neighbors, but at least has a foundation and is situated on its own lot. A mid-range travel trailer approaches the size and cost of a tiny house but no ordinance in the country would allow one as a permanent residence on a city lot. Hey, it’s a trailer! Many of the tiny houses I’ve seen have wheels. They’re also trailers! I admit a tiny house is a better option than living under a bridge or in a car. At least there is a place for a TV, even if it is just a couple of feet from your face, but at what cost financially, emotionally, legally, and mental health-wise? Here’s my take: First, financially. If built according to existing codes (forget the wheels), systems development charges and minimal permit fees for the city of Salem average in the neighborhood of $16,000 (Corvallis and Silverton fees run about $25,000). Then add in the cost of an inexpensive lot, maybe $30,000. Good luck with that! That adds up to $46,000, which is more than the cost of many of the tiny houses on wheels, and we haven’t started building anything yet.

It doesn’t take a financial wizard to figure out where I’m going with this. Tiny houses can be expensive if built to existing local codes. Second, emotionally. I live in a 2400 square foot house that has a modest 18’ x 20’ living room. That adds up to 360 square feet, about the size of a typical tiny house, more or less. If you can believe it, some are smaller. Our living room can accommodate 12 people and a cat because we don’t have to share space with a dining area, a kitchen, a bathroom, a sleeping area which is usually shoved up to within three or four feet of the ceiling and accessed by ladder, and if the designer is really clever maybe a “tiny” closet somewhere for a stacked washer/dryer plus a broom. Not to mention there is no such thing as bathroom privacy since every area in the house is no more than a few feet from every other area. Don’t forget, the sleeping area usually doesn’t have a door. And most important of all. where does the cat litter box go? Third, legally. The city of Salem zoning restrictions currently prohibit the inclusion of tiny houses on lots within their jurisdiction, but they are working on it. Assuming that sooner or later the concept will be approved, will the trailer thing be allowed? Not sure anyone who invests hundreds of thousands of dollars for their little piece of paradise would love having a tiny trailer next door. Fourth. mental health wise. People need at least a little privacy now and then to maintain a modicum of sanity and peace of mind. Good luck if someone wants to read a book or take a nap at the same time someone else wants to listen to music or get their daily dose of death and destruction on the TV news in the house without doors. Enough said.

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Contractors Struggle with Labor Shortage High-paying jobs go begging By James Day

Photo by Sheldon Traver

HOW BAD is the labor shortage these days in the construction trades? Well, you just have to look up as you zoom north toward Salem on Interstate 5. Fitzpatrick Painting has purchased a billboard alongside its shop that says “WE WANT YOU” in huge letters. “The labor shortage is at an all-time high,” said owner-president Tim Fitzpatrick, whose billboard notes $25 per hour crew leader openings. “I’ve never seen it worse.” 6 | The Chalkline | Fall 2016

Fitzpatrick currently has 45 employees but has six openings he is trying to fill. “Critical,” sums up Darand Davies of Dallas Glass off of Highway 22 in Polk County. “As of now it’s a minor annoyance, but the future looks foreboding.” “Folks are having a tremendously hard time finding subcontractors and suppliers,” said Mike Erdman, chief executive officer of the Home Builders Association of Marion & Polk Counties. Those in the construction and building www.HomeBuildersAssociation.org

Photo by Sheldon Traver

trades all agree that the current building boom is accompanied by a severe strain—those that lost their jobs during the economic downturn that started in 2007 have not returned. “The great recession in the construction community made many leave the trades and they have not come back,” Davies said. Which led to “increased demand and less young people who are interested in going into the trades,” Davies said. And the labor shortage persists despite some extremely attractive pay packages.

Ground level view “Subcontractors are overwhelmed,” said Kent Kaufman, whose family has run Kaufman Homes since 1976. Kent has been involved since 2000. The firm works mainly within a 60-mile radius of its Salem shop, with 20 employees—and three openings. “Labor-heavy sectors such as painting and concrete work are particularly a challenge. But it hasn’t affected us because we won’t let it. We plan for it. We pull guys from other jobs. We don’t want to delay our clients.”

Rich Kansky, owner-operator of Green Acres Landscaping in Salem, has 80 employees and five openings to fill.

“It’s really limited our ability to grow,” Kansky said. “It’s not killing us, but we’re actually turning down work. And it is not any one isolated area. It’s across the board.”

“I’ve got guys making $30 to $35 per hour,” Kansky said. “We need to continue to get the message out that construction jobs are prevailing wage jobs.”

Kansky said that he has tried to fill some of the gaps with “efficiency” savings, using technology and new equipment, which he says motivates employees using the new

www.HomeBuildersAssociation.org

Fall 2016 | The Chalkline | 7

Labor Shortage

continued

tools to help them advance. “It is more than just a minor annoyance here at Fitzpatrick Painting,” Fitzpatrick said. “We have had to modify our entire budget because of the deficit.” Contractors also say that it’s not just an issue of finding people to apply for their openings. It’s a matter of finding the right people for the positions. “Everybody you talk to is hiring,” Kansky said. “And everybody you talk to can’t find the right people.” “The biggest difficulty we are having is finding people that are trained—and trainable … people with the right work ethic,” Kaufman said, “people who are dedicated and looking to advance who can put their heart into their work.” Landscaper Kansky agreed. “We’re still getting applications, we’re still screening,” he said. “We could fill the five openings easily, but we’re not willing to bring in people who don’t want to advance. It’s tough finding people who want to get into the industry.” “We have gone to great lengths to recruit hires,” Fitzpatrick said, his billboard the obvious evidence.

Photo by Sheldon Traver

Fitzpatrick also noted that the strong economy is encouraging people to start their own businesses rather than join an established firm. “There are a lot of jobs to choose from, and there are a lot of folks who think having a truck and rack makes them a professional—so they are doing it on their own,” he said.

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“We’re late to the game, but it’s kind of a long-term

Is there light at the end of the tunnel? Not yet, but contractors are seeing signs of hope.

thing,” Kansky said. “We have to try to keep getting

“The demand is there, but you can’t just flip a switch,” Kaufman said.

Kansky also uses his current employees to assist

Kansky and Kaufman both lauded the addition of the Career and Technical Education Center (CTEC), a Salem-Keizer School District facility, which is about to start its second school year on Portland Road.

supervisors, managers and other employees who

the word out.”

in the recruiting process, offering incentives to bring in people. Davies of Dallas Glass thinks contractors “need to let high school students know that the trades are a very

“I’m excited about it and we’ve already hired a guy from there,” Kaufman said.

viable way to earn a living for their families. I think if they

Kansky has worked with CTEC on some of their programs.

have several of our guys who earn close to $100,000 a

“I think it’s phenomenal,” he said, “and as it grows it’s going to get better and better.”

year—and a few that are actually over that wage.

Contractors have participated in job and career fairs. Kaufman also picked up an employee from the Tradesmen International staffing agency.

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40th Annual

JANUARY 13, 14 & 15, 2017 Reserve your space today!

he Home Builders Association of Marion & Polk Counties’ Mid-Valley Home Show is celebrating its 40th year as the oldest, largest and best attended home show in the Mid-Willamette Valley. Don’t miss this amazing opportunity to showcase your goods and services to thousands of potential customers at the 2017 MidValley Home Show!

ADMISSION & PARKING FOR CONSUMERS IS FREE! Sponsored By:

For more information or to reserve your space today, contact the Home Builders Association at (503) 399-1500 or email jhuntington@homebuildersassociation.org Booths 127-131 may not set up until Thursday January 12th after 3 pm. Booths 18,19 may not set up until Friday January 13th after 8 am.

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11 am - 7 pm 10 am - 7 pm 10 am - 5 pm

Each booth is furnished with back and side drapes and one electrical outlet up to 1000 watts capacity. 220 volts is available at an additional cost. All booths are 10 x 10 unless otherwise noted. Floor plan, move-in & move-out hours, and exhibit hours are subject to modification without notice.

HBA NEWS

Go “All-In” at the 40th Annual Mid-Valley Home Show by Jeni Huntington, HBA Director of Events. I’ll admit, every once in a while I like to gamble. There is something appealing about the chance to win a few more dollars than what you came in with, while enjoying the game-like atmosphere. In the few times I have gambled, I’ve found that I am not a big fan of slot machines. To me, it seems like slots are left “too much up to chance” and I instead prefer the feeling of false “control” that the blackjack tables offer. In blackjack, even though I am gambling, I feel like I am calling the shots and more in charge of my destiny. In many ways, advertising can seem like gambling. You spend money on various mediums hoping to win back a few more dollars than you put out. At times, you may even feel like things are “too much left up to chance” when it isn’t clear what your return on investment is. Or you may feel more in control of your advertising, but even this feeling can be fleeting and end up leaving you broke. So, how do you avoid feeling like you’re gambling when trying to attract new customers? You choose a medium that has 40 years of proven results! The Mid-Valley Home Show, January 13th15th, 2017, at the Oregon State Fairgrounds offers you the opportunity to showcase your business to those qualified leads who are interested in building or remodeling.

The Mid-Valley Home Show consistently attracts a large, quality audience, ready to buy and eager to learn about the latest products and services for their homes. Our 40-year history enables us to deliver a highly targeted audience directly to your booth. The Mid-Valley Home Show is the place for you if you sell any product or service that relates to home improvement, building, remodeling, landscaping, decorating and design. According to a survey taken by Simmons Market Research Bureau, trade shows are the best source for pre-purchase information gathering. Over 90% of those surveyed rated trade shows as being more valuable than 12 other media sources of advertising and/or marketing. Another research study commissioned by the Trade Show Bureau indicated that over 80% of trade-show visitors have buying influence and 59% plan to purchase within a year. According to the same study, trade shows reach prospects for less than the cost of a sales call. Further, they reach 83% of show attendees who have not been reached previously by exhibitors’ salespeople. So what does this means for you and your business? It tells you that a booth in the Mid-Valley Home Show is actually an investment and will be money well spent.

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Booth costs are reasonable and additional discounts are offered to HBA members. If you would like more information on how your company can grow its sales by being involved in this year’s show, contact Jeni Huntington 503-399-1500 for more information and pricing.

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Fall 2016 | The Chalkline | 11

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HBA NEWS

Oregon OSHA Adopts Changes For Fall Protection SAFETY UPDATE by David Davidson, HBA Safety Management Consultant

Oregon OSHA has adopted rule changes that lower the construction industry’s 10-foot general fall protection trigger height to 6-feet. The changes also ban the use of slide guards as a sole or primary fall protection system. Slide guards can still be used but must be used in connection with another fall protection method; cannot be used by themselves. Approved on March 1, the changes affect only the requirements in Subdivision 3/M (Fall Protection) and Subdivision 3/E (Personal Protective and Life Saving Equipment). The 6-foot fall protection

requirement will take effect on Jan. 1, 2017. Beginning Oct. 1, 2017, slide guards will no longer be allowed as a primary fall-protection system. The changes stem from an October 2015 notice issued to Oregon OSHA by federal OSHA. That notice said the 10-foot fall protection requirement and the option to use slide guards as a primary fall protection system were not as effective as federal OSHA’s requirements. In drafting changes to existing rules during the summer of 2015, Oregon OSHA took input from an advisory group of leaders, including the Home Builders Association, in the commercial and residential construction sectors. Following those meetings, Oregon OSHA explained the changes to the public during five hearings held throughout the state in January 2016.

The Home Builders Association will be presenting several informational meetings soon on this topic with suggestion for fall protection under the rule changes. If you have any question on this topic or other safety issues please contact David Davidson, 503-399-1500, david@homebuildersassociation.org.

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IBS 2017

TOP 3 REASONS YOU SHOULD ATTEND Improve your business at the industry’s premiere event with access to the latest products, vital industry knowledge and key business partners—experience the 2017 NAHB International Builders’ Show® (IBS) and get all the tools you need to grow your business in 3 days! Here are the top 3 reasons you should attend: 1

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HBA NEWS

Registration Open for January 2017 International Builders’ Show in Orlando NAHB’s International Builders' Show (IBS), to be held January 10–12 in Orlando, is months away, but for those members considering attending the show, now is the time to get registered. NAHB is offering an early full registration special September 1st through November 11th which grants access to the entire show floor of nearly 1,400 top suppliers and admittance to hundreds of educational seminars for the discounted rate of $375. After November 11th full registration increases to $425. Registration for IBS includes access to both the International Builders Show and the Kitchen & Bath Industry Show.

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IBS is the largest annual light construction show in the world, attracting more than 60,000 visitors from more than 100 countries every year. IBS brings together the industry's most important global manufacturers and suppliers and showcases the latest products, materials and technologies involved in all types of buildings. The industry’s premier even gives you the tools you need to gain the competitive edge by connecting you with key business partners, improving your expertise and allowing you to experience the latest products from top manufacturers and suppliers first-hand. To register for the 2017 International Builders Show, visit www.buildersshow.com.

Fall 2016 | The Chalkline | 15

HBA NEWS

New Floodplain Rules to Greatly Restrict Development Throughout Oregon Much of the following article is the work of Heath Curtiss, General Counsel for the Oregon Forest Industries Council, and his willingness to let us reproduce it is greatly appreciated.

In addition, the RPA’s propose stringent mitigation requirements for any development that is allowed to take place, which will dramatically increase both costs and delays.

On April 14, 2016, the National Marine Fisheries Service (“NMFS”) issued its long-awaited Biological Opinion (the “Oregon BiOp”) on the Federal Emergency Management Agency’s (“FEMA”) implementation of the National Flood Insurance Program (“NFIP”) in Oregon. The Oregon BiOp concludes that FEMA’s proposed implementation of the NFIP in Oregon will jeopardize the continued existence of certain threatened and endangered fish species unless FEMA complies with a number of “Reasonable and Prudent Alternatives” (“RPAs”). The RPAs require that FEMA disqualify communities for federal flood insurance and disaster relief assistance unless those communities impose significant new prohibitions on “development” within and near floodplains. Without federal flood insurance, most developers and homeowners will be unable to finance development within the floodplain.

The Oregon BiOp provides that these are “interim measures,” and that they are “insufficient by themselves to avoid jeopardy or adverse modification over time.” NMFS anticipates that any permanent program will be even more onerous. As currently proposed, the interim measures must be adopted by Oregon cities and counties by April of 2018. It is expected that these interim measures will prohibit development of any kind within floodways, and prevent virtually all vegetation removal and/ or development activity within 170 feet of the ordinary high water mark of perennial or intermittent streams and within the boundaries of at least the 100 year floodplain. Very limited development may be allowed within the rest of floodplains, but mitigation is expected to be prohibitively expensive and must achieve no net loss of floodplain functions. Clearly Congress did not intend to prohibit development across large swaths of the landscape when enacting the National Flood Insurance Act, particularly when that development has no bearing on flooding, and for that reason we believe that NMFS oversteps its legal authority. Moreover, what is being proposed by NMFS would turn the Oregon land use planning system on its head, converting it from a program of farm and forest preservation to one focused on protections for endangered species, throwing out 40+ years of planning law and practice in the process.

The Oregon BiOp follows a similar BiOp issued on FEMA’s implementation of the NFIP in the Puget Sound area in Washington. Generally speaking, both BiOps require an extensive mapping effort of most floodplains within participating communities, and then prohibits most “development” within those floodplains without sufficient mitigation. However, the Oregon BiOp differs from the Puget Sound BiOp in two fundamental ways. First, the Oregon BiOp defines a “riparian buffer zone,” or “RBZ,” as 170 feet on both sides of all perennial and intermittent streams. Unlike the Puget Sound BiOp, the Oregon BiOp does not explicitly limit the RBZ to the floodplain, implying that the protected area may extend far beyond the actual floodplain on many streams. Second, the Oregon BiOp explicitly expands the definition of “development” to include “removal of vegetation or other alteration of natural site characteristics (including any remnant natural characteristics existing in a degraded site.)” The Oregon BiOp then provides that “development” should be prohibited within the RBZ unless the activity “will have no adverse effects on listed species or habitat, i.e., activities that will not degrade or limit natural floodplain functions in any way.”

The impact on development and property owners is quite simply unacceptable. Consequently, we are working with a large group of affected stakeholders—the timber industry, Realtors, farmers, aggregate industry, property owners, industry—along with the National Association of Home Builders and other national groups to develop and fund a litigation strategy aimed at stopping this issue before expensive and damaging regulations are adopted. We hope to find some affected cities and counties to join with us in this effort, since they (and their budgets) will be affected as much if not more than we are—much of what NMFS is proposing would expose them to lawsuits for takings or Measure 49 claims.

Taken together, and when applied to Oregon’s extensive stream network, the RPAs would impose a web of 340 foot “no development” zones throughout urban and rural Oregon. Within these zones you may not build houses, roads, or even harvest trees, unless local communities can prove that such development will not limit “natural floodplain functions in any way.”

We’ll keep you posted—this is going to be a core part of our workload over the next few years, given the disruption this would cause. In the meantime, please keep an eye on your local government and let us know immediately if you hear about ordinances or other actions being proposed to implement any of the requirements of the BiOp.

16 | The Chalkline | Fall 2016

www.HomeBuildersAssociation.org

HBA NEWS

HBA Fall Safety Training & Presentations

• • •

•

Fall Protection Presentation September 14, 2016 – 8:30 am – 9:30 am October 5, 2016 – 8:30 am – 9:30 am November 9, 2016 – 8:30 am – 9:30 am Forklift Refresher Training: Best Practices at Work October 19, 2016 – 8:30 am – 10:30 am

Fall Protection: This seminar will provide information on the new Oregon-OSHA rules set to

go in to effect on January 1st and October 1st 2017. There will be a change to the Trigger Height and use of Slide Guards. We will cover the changes, how to avoid OSHA violations and fall protection suggestions.

Forklift Class: Unfortunately, most employee injuries and property damage can be attributed to

lack of safe operating procedures, lack of safety-rule enforcement, and insufficient or inadequate training. This seminar will review the OR-OSHA rules and safe operating practices needed for the safe operation of forklifts. Attendees will also receive all forms/documents/certificates needed to be Oregon-OSHA compliant as Certified Forklift Operators.

Home Builders Association of Marion & Polk Counties Safety Seminar – HBA Conference Room – 375 Taylor St NE, Salem, OR 97301

Class Attending: ___________________________ Date of Class: ______________________ Company _________________________________________________________________ Attendee Name(s) __________________________________________________________ Phone __________________ Fax _________________ Email _______________________ Please fax this registration form to the HBA office @ 503-399-0651 www.HomeBuildersAssociation.org

Fall 2016 | The Chalkline | 17

HBA NEWS OHBA NEWS

$6 Billion Tax Threatens Consumers, Builders STATE ASSOCIATION UPDATE Jon Chandler, CEO

As you know, Oregonians will vote on an unprecedented and damaging tax increase this November. OHBA has officially opposed the measure, but because of the implications for home builders and the importance of the issue, we asked the coalition for an article. Please share this far and wide so we can defeat this very bad idea. Thanks… —Jon In late May, the Secretary of State certified that sponsors of Initiative Petition 28 (IP 28) had submitted more than enough petition signatures to qualify their $6 billion tax on Oregon sales for the November General Election ballot. Like virtually every Oregon industry and every Oregonian, there’s good reason for home builders to take a close look at IP 28 and how it will affect them. The language of IP 28 is simple. It modifies the corporate minimum tax rates passed by voters in 2010 for C-corporations with total annual Oregon sales of $25 million or more, requiring them to pay “$30,001 plus 2.5% of the excess over $25 million.” According to economists in the nonpartisan Legislative Revenue Office (LRO), that change will increase state tax revenues about 25 percent, or more than $6 billion per biennium.

Oregon home builders that are C-corporations with more than $25 million in annual sales likely already have assessed the direct cost of IP 28. LRO economists estimated IP 28 would increase total corporate taxes paid by the construction industry C-corporations by more than 500 percent. LRO used its sophisticated Oregon Tax Incidence Model (OTIM) to carefully analyze IP 28. OTIM allows LRO economists to “simulate how the tax would affect wages, prices and other economic metrics.” But that is only the direct cost, and doesn’t estimate the indirect costs that would be borne by all home builders. IP 28 would impact smaller home builders or those that happen to be organized as S-corporations or so-called “benefit companies,” through their purchases. Many costs contractors incur—such as framing lumber, windows and doors, paint and siding, insurance, concrete and rock, utilities, and much more—may be paid to providers subject to the IP 28 tax that pass their IP 28 costs to their contractor customers in higher prices. Its report concludes that about two-thirds of IP 28’s costs will actually be paid by Oregon consumers and businesses that aren’t directly subject to the new tax through higher prices paid for nearly everything we buy. One of the key findings in the LRO study: “Because IP 28 is based on Oregon sales

and heavily concentrated on domestic consumer sectors, it is expected to largely act as a consumption tax on the state economy. Taxes initially borne by the retail trade, wholesale trade and utility sectors are expected to result in higher prices for Oregon residents.” All Oregonians will be paying this tax through higher prices on nearly everything they buy—including gasoline, utilities, clothing, medicine, and even food—costing the typical Oregon household more than $600 every year. And, Oregon home builders, their employees and their Oregon customers are all likely to be paying the cost of IP 28, even if they are not directly subject to the tax. In addition, IP 28 does not tax profits; it taxes sales. Businesses would be forced to pay the tax regardless of whether they make a large profit, a small profit, or no profit. That means that companies struggling to stay in business would have to pay this new tax even when they are losing money. That would force hundreds of local businesses, including home builders, to raise prices, cut jobs, or both. IP 28 arbitrarily narrows the base of state taxation of business to C-corporations. The LRO report declares that “adds another element of potential market distortion by creating an advantage for businesses that are not directly affected compared to the large C-corporations which are directly subject to the tax.”

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FROM THE FOUNDATION TO THE ROOF ... AND EVERYTHING IN BETWEEN 18 | The Chalkline | Fall 2016

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OHBA HBA NEWS

By John Tapogna, President of ECONorthwest The report continues: “The measure will also create a competitive advantage for out-of-state C-corporations that sell into the state but are apportioned using the cost of performance method or do not meet corporate nexus requirements.” Large companies that directly compete with C-corporations but are organized as S-corporations, benefit companies of sole proprietorships are also competitively advantaged by IP 28, suggesting that companies that can change their corporate structure may choose to change their structure to avoid the tax. Finally, IP 28’s language suggests it will fund schools, senior services, and healthcare. But the fact is, it’s impossible to tightly earmark new revenue and there’s no guarantee new tax revenues will go their intended purposes. In fact, the Oregon Constitution likely will require that new taxes paid by oil companies go to the state Highway Fund. Like other aspects of this proposal, the earmarking feature was not well thought out. In short, IP 28 is hastily devised and ill-conceived tax policy. Oregon deserves better. (Oregon Home Builders Association opposes IP 28 and has joined the coalition working to defeat it. If you and your company have not yet joined, we encourage you to please add your name and your company to the coalition at DefeatTheTaxOnOregonSales.com.)

Accident Report Case Study Safety Update by David Davidson A roofer fell from the eave of a sloped roof. The roofer went up to the roof to begin some roofing work, but he left his fall protection in the truck. Two other workers already on the roof told him to bring it up and put it on. They were already wearing their gear in fall-restraint mode. After he got his gear from his truck, the roofer went back up on the roof. About that time, the company owner arrived at the site, but he didn’t notice that the roofer was still not wearing fall protection. The roofer needed a battery for a cordless drill, so he walked down the roof toward the eave and asked the owner to get him one from the truck. The owner threw a battery up to him as he approached the eave. When the roofer tried to catch it, he slipped and fell. The owner tried to catch him and took some of the momentum from his fall, but the roofer still broke both of his heels. He fell 12½ feet, landing on concrete.

Findings The roofer had been trained in the proper use of fall protection, attended regular safety meetings, and knew when fall protection was required. This was not the

first time the owner saw the roofer on a roof without fall protection. He talked to the roofer about wearing protection the week before this accident.

Applicable standards (Oregon-OSHA Rules) 437-001-0700(21)(c) – The owner failed to report an overnight hospitalization within 24 hours. The sheriff’s office told the owner to report the accident to Oregon OSHA. 437-001-0765(13) – The owner failed to document safety meetings for his employees; he held regular safety meetings, but did not document them. 437-003-0503(2)(a) – The owner failed to document a written certification training record for his employees; the training had been conducted, but not documented. 437-003-1501 – “When employees are exposed to a hazard of falling 10 feet or more to a lower level, the employer shall ensure that fall protection systems are provided, installed, and implemented.” The owner did not require his employee to wear fall protection.

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Fall 2016 | The Chalkline | 19

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8/2/16 3:36 PM

VITAL STATISTICS

Vital Statistics

Information Courtesy of Willamette Valley Multiple Listing Service NEW RESIDENTIAL CONSTRUCTION

KEIZER

CENTRAL SALEM

SUBURBAN EAST—N

SUBURBAN EAST—S

SE SALEM

SOUTH SALEM

WEST SALEM

MARION COUNTY

POLK COUNTY

TOTAL

386

$307,898

$206,235

$216,459

$182,033

$340,540

$336,137

$292,707

$286,134

$271,056

$296,319

Average Square Footage

1,998

1,545

1,467

1,340

2,183

2,185

2,034

2,019

1,777

1,981

Average Cost per Square Foot

$154

$133

$148

$137

$156

$154

$144

$142

$153

$150

Average Days on the Market

186

118

104

117

141

144

161

166

156

160

Currently Active Listings

120

Units Sold 12 Months to Date Average Sales Price

Units Sold – 12 Months to Date

Months of Inventory on Market 5

600

4 400

3 2

200

1 0

Top Area Builders

6 l-1 Ju

6 Ap

nJa

r-1

5 -1 ct O

5 l-1 Ju

6 Ju

l-1

6 r-1 Ap

5 -1 ct O

l-1

National Association of Home Builders

RANK

BUILDER

PERMITS*

Don Lulay Homes, Inc.

Comfort Homes

3. (tie)

Banner Homes

Fowler Homes

Chad E Davis Construction

Wind River Homes

Del Boca Vista, LLC

Pahlisch Homes, Inc.

MC Northwest

10.

Boylan Construction

* Building permits, last 12 months. Data for all areas of Marion and Polk Counties. June 1, 2015–June 30, 2016. Data compiled from building permits applied for through Salem, Marion County, Polk County, Dallas and Independence building departments.

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Looking for listings, lots, or land? For Lot & Land Listings, please visit HomeBuildersAssociation.org/lot-and-land-listings.html www.HomeBuildersAssociation.org

nahb.org/MA Fall 2016 | The Chalkline | 21

HBA EVENTS CALENDAR

Make the Most of Your HBA Membership The summer is winding down and the fall season is upon us. With daylight hours beginning to wane, it is time to start taking advantage of your HBA membership by getting more involved. We have several networking events coming up this fall season that you will want to be a part of. On October 11th we will return to our monthly networking events with an “Off the Clock” event hosted by Willamette Valley Appliance at their new location at 4101 River Rd N in Keizer. For only $10 per person, which includes a heavy appetizer dinner with two drinks, you can mix and mingle with your fellow association members while celebrating Willamette Valley Appliance’s growth and new showroom. In November we will head to the Salem Convention Center to honor and recognize the 2016 HBA Showcase House and volunteer builder, Serge Serdsev of Pacific National Development, as well as the many contributors from local subcontractors and material suppliers. Join us on November 8th at 5pm for dinner and a drink for $25.00 per person sponsored by Parr Lumber Company and Fitzpatrick Painting. Help us celebrate the holiday season in December as we install our 2017 HBA President, Kent Kaufman of Kaufman Homes, and the 2017 Board of Directors as well as recognize membership awards and Builder and Associate of the Year. This year’s celebration will take place on Tuesday, December 13th at Illahe Hills Country Club for $38.00 per person sponsored by HomeSmart Realty Group and James Hardie Building Materials.

If you find yourself unable to attend the above events, you can still make the most of your membership by taking advantage of one of our many cost-saving member benefits programs. HBA members are eligible for many different discounts including Verizon Wireless for members with 5 or more devices and fuel discounts through Supervised Fuels card lock systems. There are also many other cost savings programs available through the HBA, the Oregon Home Builders Association and the National Home Builders Association you can check out by contacting our membership director, Carrie Daye, for more information. HBA Off the Clock Tuesday, Oct. 11, 5–7 pm at Willamette Valley Appliance 4101 River Rd N, Keizer, $10 per person

HBA All Member Dinner Tuesday, Nov. 8, 5–7:30 om, at the Salem Convention Center 200 Commercial St SE, Salem, $25 per person Drink Sponsor – Parr Lumber Company Dinner Sponsor – Fitzpatrick Painting

HBA Holiday and Installation Banquet Tuesday, Dec. 13, 6–9 pm at Illahe Hills Country Club 3376 Country Club Rd S, Salem, $38 per person Dinner Sponsor – HomeSmart Realty Group Drink Sponsor – James Hardie Building Products

To register for these events, please call our office at 503-399-1500 or visit www.homebuildersassociation.org.

HBA Events Calendar DATE

EVENT

TIME

LOCATION

September 15

Lead Paint Certified Renovator Training

8:30am - 5:00pm

HBA Conference Room

September 22

Lead Paint Certified Renovator Refresher Training

8:30am - 12:30pm

HBA Conference Room

October 11

HBA Off the Clock

5:00pm - 7:00pm

Willamette Valley Appliance

October 13

Lead Paint Certified Renovator Refresher Training

8:30am - 12:30pm

HBA Conference Room

October 20

Lead Paint Certified Renovator Training

8:30am - 5:00pm

HBA Conference Room

November 8

All Member Dinner Meeting

5:00pm - 7:30pm

Salem Convention Center

November 10

Lead Paint Certified Renovator Refresher Training

8:30am - 12:30pm

HBA Conference Room

November 17

Lead Paint Certified Renovator Training

8:30am - 5:00pm

HBA Conference Room

December 8

Lead Paint Certified Renovator Refresher Training

8:30am - 12:30pm

HBA Conference Room

December 13

HBA Holiday & Installation Banquet

6:00pm - 9:00pm

Illahe Hills Country Club

December 15

Lead Paint Certified Renovator Training

8:30am - 5:00pm

HBA Conference Room

22 | The Chalkline | Fall 2016

www.HomeBuildersAssociation.org

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