The Chalkline Summer 2020

The

SUMMER 2020

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

Challenging Times

Home builders take two-pronged approach to virus

– page 5

President’s Message �������������������������������������������������������4 Business Continuity Planning ������������������������������������� 8 State Association Update ��������������������������������������������� 10 Tour of Remodeled Homes to Return ����������������������� 12

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CONTENTS / MEMBERSHIP & BOARD

2020 Board of Directors Contents

OFFICERS PRESIDENT

Brett Tallan, M.J. Tallan Construction VICE PRESIDENT

Nolan Fridley, Nolan Fridley Construction SECRETARY/TREASURER

Jason Sawyers, Randy Fultz Custom Homes, LLC ASSOCIATE VICE-PRESIDENT

Brent DeHart, Northwestern Mutual IMMEDIATE PAST PRESIDENT

Mike Riddle, Mike Riddle Construction, LLC FORMER PAST PRESIDENT

Rick Massey, Richard Massey Construction

BOARD MEMBERS Mike Devlin, Withers Lumber Oleg Foksha, Foksha Homes Kyle Juran, Remodeling by Classic Homes, Inc. Leslie Kampstra, Cherry City Interiors & Design Wes McWhorter, Premier Remodeling & Design Brad Moore, AmeriTitle Keith Owen, Owen Construction Kevin Scerini, Sunco Homes & Remodeling Jordan Schweiger, Good Well Construction Amy Senske, Consolidated Supply / The Fixture Gallery Bruce Wadleigh, Barn Wood Naturals Andrew Wheeler, T. Wheeler Homes, LLC

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 Brad Nanke, Director of Safety & Training brad@HomeBuildersAssociation.org Reilly Rosecrans, Events Manager reilly@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 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

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+

President’s Message ���������������������������������������� 4 Challenging Times �������������������������������������������� 5 Business Continuity Planning �������������������������� 8 State Association Update �������������������������������10 Tour of Homes Moves ��������������������������������������11 Tour of Remodeled Homes to Return ������������ 12 Vital Sttistics ��������������������������������������������������� 14

John Gooley 2520

STATESMAN SPIKE 500+ Ric McNall 799

SUPER SPIKE 250–499 Tim Mametieff 464 Mike Smith 456 Rick Massey 426 John Mills 407 Dan Dorn 360

Jeffrey Green 339 Dean Kaufman 324 Chuck Foster 287 Jubal Frost 261

ROYAL SPIKE 150–249 Steve Johnson 238 Don Druliner 202 Tom Wheeler 191 Mike Riddle 184

Rick Ziebell 165 Randy Fultz 165 Ken Hannegan 161

RED SPIKE 100–149 Kelvin Dettwyler 144 Rob Rardin 122

Jerry Page 100

GREEN SPIKE 50–99 John Hammer 95 Lora Creswick 92 Rich Kansky 83 Larry Bilyeu 75 Kent Kaufman 75 Matt Holstege 75 Eric Olsen 67 Kathy Temple 65

Brad Moore 65 Bruce Hardy 62 Mike Smith 56 Don Sturgeon 57 Serge Serdsev 53 Patrick Jackson 52 Kerry Kuenzi 51

LIFE SPIKE 25–49 Eric Jensen 47 Steve Herr 46 Chris Pfeifer 46 Randy Melton 46 Eric Templeton 45 Jim Hobbs 45 Rich Tovar 43 Ryan Bloedel 42 Tim Kelsh 34 David Hafner 33

Kimberly Hosmer 33 Nolan Fridley 27 Michael Devlin 27 Rich Fry 26 Laura Dorn 26 Mark Shipman 26 Rich Clausen 25 Kevin Stone 25 Jason Sawyers 25

BLUE SPIKE 6–24 Rod Ashford 25 Kraig Kelly 23 Hunter Emerick 23 Randy Reeves 22 Jason Robertson 21 Brent Pence 21 Robert Kleinke 20 Steve Hurley 20 Don Lulay 12 Brett Tallan 12 Chad Robb 12 Ricky Fast 10 Mike Giles 10

Jim Sparkman 9 Chad Montgomery 9 Chris Rasmussen 9 Gary Epping 9 Mark McGregor 9 Brent DeHart 8 Tim Roth 8 Bonique Hollinrake 7 Jeff Boles 7 Becky O’BrienGardinier 6 Leslie Savage 6 Della Seney 6

New & Reinstated Members AFC Windows Jose Anguiano (503) 932-7686 Spike: Nolan Fridley Arne Jensen Landscaping Aren Jensen (503) 363-4706 Spike: Jordan Schweiger CK’s Painting LImited Liability Company Carlos Flores (503) 990-5828 Spike: Andrew Wheeler Columbia Bank Brad Johnson (503-603-8030 Spike: Mike Riddle Connic Enterprises, Inc. DBA Northwest Restoration Hannah France (503)503-678-2343 Spike: Jordan Schweiger D.R. Horton Andrew Tiemann (503) 222-4151 Downs Construction Sergei Gostevsky (971) 343-2155 Spike: Nolan Fridley Ever Fab Daniel Bryan (503) 303-3300 Spike: Amy Senke F.W. Stovin - Designer Finn Stovin (503) 851-8718 Spike: Dan Dorn New & Reinstated Members continues on Page 14

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.

F & S Security Russell Dyer (503) 371-3984 Project Delivery Group Barbara Whisenhunt (503) 364-4004 Gysin Realty Group, LLC Greg Gysin (503) 585-1970

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.

Summer 2020 | The Chalkline | 3

Resilience Is Key New acronyms and new terminology that I have come to dislike so much: COVID-19, social distancing, flatten the curve, Stay Safe, SBA, PPP, EIDL…all things that have become part of our “New Normal” evidently. I think we may have all permanently damaged our skin from so much hand sanitizer and washing our hands. What was that about smooth sailing that I mentioned in my last President’s Message? That sure went out the window fast! But seriously, by the time this article is published I hope and pray that everyone is doing well and that we have made it out of the worst. As I reflect on everything that we have all gone through as of recently, I keep coming back to one word… resilience.

It has been amazing to see the resilience in our families, in our local community, in our country, and also here in our building industry. Even with so much bad in the news and sort of a darkness over everything as we have weathered through this crisis, I have seen so much good happening around us all. People helping family, friends, neighbors and strangers. Our frontline doctors and nurses fighting to help people stay alive and get better.

Businesses adapting to stay open and provide for their customers and employees. People lining up to make and distribute face masks. Construction businesses like mine and yours donating our dust masks to medical offices. The list could go on and on. We really have seen such strength, toughness, spirit and flexibility… resilience.

Bringing this back to here at the HBA, we have been working hard demonstrating all those same attributes.

Huge praises and thanks go out to our HBA, the OHBA, and all the HBAs around the State that really got out in front of this crisis when it first broke out. Without the coordinated effort of all our associations we would not

President’s Message

by Brett Tallan

have been able to stay open and keep working. We worked diligently with the Governor and staff to make sure that we would adhere to safe working practices and that we were deemed essential to the community and our economy from the very beginning. Our association has also done an amazing job providing up to date information via emails and virtual meetings about SBA loans, safety issues, etc. The spirit and the flexibility of the staff has been tremendous, and I applaud them greatly. They have all been working hard through this whole crisis keeping things running smooth.

Next time you get a chance to see one of them face to face, I hope you all take the opportunity to give them a personal thanks.

I know that all of us out there in the building industry wonder where this is going to leave us when this is all done. We all hope we bounce right back to a robust building and home selling market. Time will tell I guess, but for now strength, toughness, and a spirit of hope will be what I am leaning on. Resilience will get us through.

This crisis has brought out the best in us and I hope to see you all soon at an upcoming event. Face to face… I am so tired of the virtual meetings.

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CHALLENGING TIMES

Home builders take two-pronged approach to COVID-10 virus

By James Day Life throws you curveballs from time. It’s how you deal with unexpected events that defines you.

The coronavirus is the all-time curveball, and for members of the Home Builders Association of Marion & Polk Counties it has presented challenges in two basic areas.

First, what is the best way to keep contractors, subcontracters and all of their employees safe on the job?

Second, how do you keep Association members who might be struggling during the economic downturn supplied with information on relief programs?

Worker safety “Worker safety has been our primary focus since the outbreak of the pandemic, as it’s the key to ensuring that the construction industry is allowed to remain working,” said Mike Erdmann, chief executive officer of the Home Builders Association of Marion & Polk Counties.

“We’ve worked to educate members and their employees about the jobsite safety and physical distancing practices needed to keep everyone safe, making sure that everyone knows that if we fail to do an excellent job of this then there’s a decent chance we’d be shut down by the state.” www.HomeBuildersAssociation.org

Erdmann credits the Oregon HBA for spearheading the effort to keep the industry working, and working safely.

“Our state association took a very proactive role in working with the Governor’s office and the Oregon Health Authority to ensure that if the industry was able to follow property safety practices, we’d be allowed to continue operating.

They also rushed to quickly put together a one-hour online class designed to help train contractors on the necessary safety practices, as well as formed a coalition with other statewide trade associations and trade unions to make sure we were all working together towards safe jobsite practices.”

Brad Nanke, the HBA’s Director of Safety and Training, has also worked with this new coalition and Oregon-OSHA to promote safe construction sites and advise construction employers on best practices during the pandemic.

One of the biggest hurdles builders have had is traveling to work sites.

“One of the real challenges for many employers has been the sharing of company vehicles,” Erdmann said. “Workers are unable to maintain proper physical distancing if they’re sharing the front seat of a vehicle together, so that’s been especially problematic for employers who send out two or more employees to a jobsite in a company rig.

Continued next page Summer 2020 | The Chalkline | 5

Challenging Times

continued from page 5

“We’ve gotten great cooperation from local cities and counties,” Erdmann said, “and while they’re generally working from home like most others and trying to process applications and permits electronically, they’ve been a key partner in keeping activity going.

“It might take a little longer at times to get approvals, but by and large the cities and counties have been able to maintain their application and permit processes.”

Relief efforts The chilling reports on unemployment claims and business struggles seem to come almost daily, with home builders, just like other industries, faced with getting up to speed quickly on the relief programs and financial assistance that is available for individuals and companies.

“Many have resorted to having just one employee in the company rig while other employees may drive to the jobsite in their personal vehicle.”

Erdmann said he has been encouraged at the buy-in members have exhibited.

“Most everyone understands the significance of the COVID-19 pandemic, and not only do they recognize that safety and physical distancing are the keys to keeping the construction industry working, but they want to do all they can to keep everyone safe and prevent the spread of the virus,” Erdmann said.

The two key pieces for builders were the Payroll Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).

In addition, Erdmann said, “were the new obligations employers were facing with all of the new federal requirements for unemployment insurance, paid leave and more.”

“Employers had so many questions about their obligations around paid leave and unemployment, and everyone had questions about their eligibility for the PPP and EIDL

The pandemic has affected members in a variety of ways, Erdmann said. Home construction is perking along as before, with low interest rates providing some incentives for buyers. Remodeling firms and their suppliers have been facing tougher times, because homeowners are reluctant to have contractors inside their homes. Also affected, Erdmann said, are businesses that have a retail presence and depend upon consumer traffic, Another piece of the pandemic puzzle has been working with the building and planning departments of local governments. These are the folks that issue permits, process applications and conduct inspections.

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programs, including how and where to apply, how the monies could be spent, how much could be forgiven, etc.”

Erdmann said. “We worked to try to bring information to members in real time, sending out emails as the new rules were adopted and went into effect. We also partnered with other business groups in Salem, the Chamber of Commerce and other HBAs around the state to bring legal, employment and banking experts together on live webinars where members could learn about the new rules and financial assistance, and hopefully get their questions answered.”

The HBA has presented three webinars, one that dealt with employment and two more on the financial assistance programs.

One of the webinars attracted 450 participants, including 150-plus from the Marion and Polk group.

“There was tremendous demand for the information,”

We worked hard to bring information to members in real time, sending out emails as new rules were adopted.

Erdmann said.

The programs, Erdmann said, have “really helped affected businesses keep their employees on payroll during the crisis.”

And the PPP, which offers forgivable loans equal to 2.5 times monthly payroll, has “been a lifeline for many.”

The pandemic also has wreaked havoc with the Association’s calendar, which hurts both in terms of making it harder to reach new clients and on the bottom line.

The Association’s Yard, Garden and Home Show, scheduled for March 20-22, was canceled. And because the HBA is a 501c(6) nonprofit, no forgivable PPP loans are available.

The group’s Tour of Homes has been moved from late June to late July, with a golf tournament set for mid-July. Both events, Erdmann said, will involve modifications to follow the latest virus protocols.

“The ability to gather folks together and connect with each other is a major part of what we do as an association, so we’re adapting and working hard to modify our future activities,” Erdmann said. www.HomeBuildersAssociation.org

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HBA NEWS

Business Continuity Planning Hopefully we are all moving through a recovery phase when this goes to print. The past few months have been challenging. While we can always be better prepared for disasters, there is a formal process that can assist us in planning for – and recovering from – them.

Business continuity planning (BCP) is the process involved in creating a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and can function quickly in the event of a disaster.

Having developed BCPs previously, there was always one planning section that was troubling on how to complete, as we had little experience with it in recent history: The Pandemic.

While the pandemic recovery is on the top of everyone’s list at the current time, there are other disasters that are waiting in the wings and must be planned for as well.

Disasters such as Drought, Earthquakes, Explosions, Extreme Heat, Floods, Hazardous Materials Incidents, Fires, Landslides, Power Outages, Severe Weather, Tornados, Tsunamis, Volcanoes, and Wildfires.

safety Brad Nanke HBA Director of Safety and Training Planning Suite that is available from Ready.gov at https:// www.ready.gov/business-continuity-planning-suite.

This free software was created for any business with the need to create, improve, or update its business continuity plan. The Suite is scalable for optimal use by organizations of any size. Businesses can utilize this solution to maintain normal operations and provide resilience during a disruption. More information is available at https://www.ready.gov/ business-continuity-plan.

This COVID-19 pandemic may very well not be over yet;

Any of these disasters can affect the operation of individual or multiple businesses, locally, regionally, or state-wide.

we could see a resurgence again later this year. Make

While there are many BCP templates available online, you may want to consider the Business Continuity

paper over the next few months. Be prepared for this or

note of supplies that were in short supply and build up reserves of PPE, hand-sanitizer, and maybe even toilet any other disaster by developing a BCP. Stay Safe!

Business Impact Analysis

Recovery Strategies

Plan Development

• Develop questionnaire

• Identify and document resource requirements based on BIAs

• Develop plan framework

• Conduct gap analysis to determine gaps between recovery requirements and current capabilities

• Develop Relocation Plans

• Conduct workshop to instruct business function and process managers how to complete the BIA • Receive completed BIA questionnaire forms • Review BIA questionnaires • Conduct follow-up interviews to validate information and fill any information gaps

8 | The Chalkline | Summer 2020

• Explore recovery strategy options • Select recovery strategies with management approval • Implement strategies

Testing & Exercises

• Organize recovery teams

• Develop testing, exercise and maintenance requirements • Conduct training for business continuity team

• Write business continuity and IT disaster recovery procedures

• Conduct orientation exercises • Conduct testing and document test results

• Document manual workarounds • Assemble plan; validate; gain management approval

• Update BCP to incorporate lessons learned from testing and exercises

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Summer 2020 | The Chalkline | 9

OHBA NEWS

Working Together Brings Results The coronavirus pandemic created almost never before seen challenges for our state. It required innovative, proactive steps by our builders to meet those new challenges. As state, local and federal leaders were grappling with the initial data indicating widespread impact to our healthcare system and our citizens, the Oregon Home Builders Association (OHBA) adopted a set of principles and initiatives to keep the housing industry contributing to Oregon’s economic and shelter needs. State HBA leaders recognized that the key to keep construction open was through virus prevention and demonstrated jobsite safety protocols. They also recognized the need to work through a broad-based approach with all segments of the industry that affect the supply chain and the overall economy.

OHBA formed the Oregon Construction Coalition to ensure contractors’ voices were heard and to share information and best practices. The coalition quickly realized that local government officials needed new tools and flexibility to keep the permit and plan review process moving, so we sought and received Emergency Rules to allow greater local flexibility for virtual inspections and electronic processes. OHBA swiftly developed a first-in-the-nation residential COVID-19 training program, jobsite safety protocols, posters, banners and weekly safety break messages to demonstrate our commitment to remaining open while doing our part to slow the spread of the virus and keep our employees and visitors safe. Next, we partnered with the construction contractor’s board and Oregon OSHA on a joint press release recognizing our commitment to working safely. Currently, OHBA is working on a Safety Task Force with the Building Trades and other entities that influence the construction industry to help share best practices with employees directly. Our

STATE ASSOCIATION UPDATE Mark Long, CEO

industry has proven its ability to respond to the Governor’s executive order - which was necessary to remain working.

You should know that your OHBA team has weekly check-ins with all local HBAs, our contractor partners, building trades partners, local government inspectors, key state agencies and general legislative and government affairs We know the pandemic has been a challenge professionally and personally for our members and we appreciate the support of your state association. If you have a moment, take a look at our OHBA COVID-19 webpage to see the cumulative work of your state team. From forming partnerships to developing safety material, and to making sure our state and local agencies have confidence in our work, we are here to serve you. We also have best practice information, the COVID-19 Jobsite Safety Training program, a photo gallery, and social media content to follow. Subscribe to our blog and continue to stay updated on all that the OHBA is doing to advocate for you.

Now that we have grown past the challenges of the last several months, we look forward to continuing to serve our membership.

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HBA NEWS

Home Builders Association Moves Tour of Homes to Late July Responding to the COVID-19 pandemic, the Home Builders Association of Marion & Polk Counties has moved the 2020 Tour of Homes back a month into late July. The Tour will now take place July 18th – 26th, rather than its original date in late June. The move was prompted by concerns that Tour builders would struggle to complete homes by late June without crowding subcontractors together in the last-minute rush to finish prior to the Tour’s opening day. The additional time allows subcontractors more time to space out and adhere to social distancing requirements, as well as provide an additional buffer of time the expected lifting of the Governor’s stay-at-home order and the opening of the Tour.

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“Our first priority is the safety of our workers and the visitors to our homes, so delaying the event a few weeks just makes sense given the realities everyone is facing,” said Brett Tallan, owner of MJ Tallan Construction and 2020 President of the association.

The move to late July does provide additional time for builders considering placing an entry in the Tour of Homes, so if your build schedule accommodates the new dates and you’d like more information on participating, please reach out to the HBA’s Jeni Huntington at 503-399-1500 or jhuntington@homebuildersassociation.org. For more information on the Tour, visit tourofhomes.net.

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HBA NEWS

Tour of Remodeled Homes to Return this September Coming back for its second year, the Home Builders Association of Marion & Polk Counties is excited to once again present the Tour of Remodeled Homes the weekend of September 19th & 20th!

We know how personal the experience of a home remodel is for your customers. Your style, personality and communication skills need to be the right fit for customers looking for an excellent remodel experience and product. With numerous remodeled homes on display throughout the community over this two-day event, the Tour of Remodeled Homes allows you to showcase your work, style, and personality all while gaining a face

to face connection with potential clients. Inspire and connect with those in the Salem area who are wanting to remodel and turn their house into a dream home.

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HBA NEWS

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numerous leads to the remodelers who took part, as well as enabling them to promote their business and build even greater awareness of their remodeling businesses. Capitalizing on the well-known brand of the Tour of Homes, we anticipate the Tour of Remodeled Homes will continue to grow and place a spotlight on the incredibly talented remodelers within the HBA’s membership. Entry applications for the Tour are being accepted through July 1st, and we would love to hear from you if you’re interested in taking part. Allow your work to speak for itself and leave a lasting impression that will inspire people to remodel, design and dream big!

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HBA Events Calendar DATE

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HBA Tour of Homes

July 13th

HBA Golf Tournament at Salem Golf Club

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HBA Tour of Remodeled Homes

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Vital Statistics NEW RESIDENTIAL CONSTRUCTION

Information Courtesy of Willamette Valley Multiple Listing Service

KEIZER

CENTRAL SALEM

SUBURBAN EAST—N

SUBURBAN EAST—S

SE SALEM

SOUTH SALEM

WEST SALEM

MARION COUNTY

POLK COUNTY

TOTAL

22

3

160

13

74

41

84

229

148

774

$420,430

$306,000

$336,248

$316,515

$423,946

$439,236

$394,079

$409,084

$344,064

$381,353

Average Square Footage

2,447

1,493

1,906

1,629

2,019

2,139

2,205

2,021

1,734

1,972

Average Cost per Square Foot

$173

$206

$179

$200

$212

$207

$181

$204

$201

$196

Average Days on the Market

258

84

90

112

172

137

149

168

175

151

Currently Active Listings

6

1

13

6

23

18

13

45

27

152

Units Sold 12 Months to Date Average Sales Price

Top Area Builders

Sold Units-12 Months to Date 800 600 400

RANK

BUILDER

1.

DR Horton Inc

204

2. (tie)

Celtic Homes LLC

49

Fowler Homes

49

4.

Forrest Ridge Homes, Inc.

42

5.

Banner Homes

34

6.

Comfort Homes

32

7.

MC Northwest

31

8.

Chad E Davis Construction

28

9.

Stafford Homes & Land LLC

26

10. (tie)

Hayden Homes LLC

19

Wilde Properties

19

200 0

9

1 r.

Ap

9

y1

l Ju

t.

Oc

19

0

.2

Jan

r.

Ap

20

Months of Inventory on Market 6.0 5.0 4.0 3.0 2.0 1.0 0.0

9

.1 pr

A

9 y1

l Ju

9 .1

t

Oc

New & Reinstated Members

0 .2

Jan

0 .2 pr

A

PERMITS*

Data for all areas of Marion and Polk Counties. April 1, 2019 - Mar. 31, 2020.

Data compiled from building permits applied for through Salem, Marion County, Polk County, Dallas and Independence building departments.

continued from page 3

Gary’s VACUFLO Inc. Curt Campbell (503) 775-2042 Spike: Brad Moore

Quality Sales, Inc. Jessica Halberg (503) 577-5546 Spike: Amy Senske

Ole Bergman Excavating, Inc. Justin Trowbridge (503) 623-4505 Spike: Brad Moore

Serenity Cleaning Services, LLC Brenda Oleman (503) 551-5193 Spike: Mike Riddle

Piche Group Investments, Inc. Beth Martin (503)979-2811 Spike: Michael Devlin

Umpqua Home Mortgage Vanessa Rez (503) 476-4953 Spike: Nolan Fridley

14 | The Chalkline | Summer 2020

www.HomeBuildersAssociation.org

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