Chalkline Magazine Summer 2021

The

SUMMER 2021

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

THE PRICE IS NOT RIGHT Lumber and materials costs plaguing builders

President’s Message �������������������������������������������������������4 The Price is Not Right ����������������������������������������������������� 6 Return to In-Person Events ������������������������������������������ 10 Entries for Tour of Remodeled Homes �������������������� 13

CONTENTS / MEMBERSHIP & BOARD

2021 Board of Directors Contents

OFFICERS PRESIDENT

Nolan Fridley, Nolan Fridley Construction VICE PRESIDENT

Jason Sawyers, Randy Fultz Custom Homes, LLC SECRETARY/TREASURER

Oleg Foksha, Foksha Homes ASSOCIATE VICE-PRESIDENT

Keith Owen, Owen Construction IMMEDIATE PAST PRESIDENT

Brett Tallan, M.J. Tallan Construction FORMER PAST PRESIDENT

Rick Massey, Richard Massey Construction

BOARD MEMBERS Mike Devlin, Withers Lumber Jeremy Haller, Interstate Electric Natalie Janney, MultiTech Engineering Kyle Juran, Remodeling by Classic Homes Brad Moore, AmeriTitle Caleb Remington, Remington Built Santiago Sarmiento, Sarmiento’s LLC Kevin Scerini, Sunco Homes & Remodeling Jordan Schweiger, Good Well Construction Bruce Wadleigh, Barn Wood Naturals Andrew Wheeler, T. Wheeler Homes, LLC Gary Williamson, Williamson-James Homes

Association Staff Mike Erdmann, Chief Executive Officer mike@HomeBuildersAssociation.org Carrie Daye, Director of Member Services carrie@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 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.

President’s Message ���������������������������������������� 4 The Price is Not Right �������������������������������������� 6 Safety Update �������������������������������������������������� 9 What is the New Normal? �������������������������������11 Vital Statistics �������������������������������������������������� 14

ALL TIME BIG SPIKE 1500+ John Gooley 2596

STATESMAN SPIKE 500+ Ric McNall 804

SUPER SPIKE 250–499 Tim Mametieff 469 Mike Smith 467 Rick Massey 430 John Mills 424 Dan Dorn 366

Jeffrey Green 352 Dean Kaufman 332 Chuck Foster 290 Jubal Frost 269

ROYAL SPIKE 150–249 Steve Johnson 243 Mike Riddle 217 Don Druliner 202

Tom Wheeler 200 Rick Ziebell 169 Ken Hannegan 163

RED SPIKE 100–149 Kelvin Dettwyler 145

Rob Rardin 124

GREEN SPIKE 50–99 John Hammer 96 Matt Holstege 89 Rich Kansky 83 Kent Kaufman 79 Larry Bilyeu 75 Brad Moore 72 Eric Olsen 69 Kathy Temple 65

Jordan Schweiger 67 Bruce Hardy 63 Don Sturgeon 60 Kerry Kuenzi 59 Mike Smith 56 Serge Serdsev 53 Eric Templeton 51 Randy Melton 50

LIFE SPIKE 25–49 Eric Jensen 48 Chris Pfeifer 47 Steve Herr 46 Jim Hobbs 45 Rich Tovar 45 Ryan Bloedel 43 David Hafner 35 Kimberly Hosmer 35 Michael Devlin 35

Jason Sawyers 34 Tim Kelsh 34 Nolan Fridley 31 Rich Fry 26 Laura Dorn 26 Mark Shipman 26 Kevin Stone 26 Jason Sawyers 34

BLUE SPIKE 6–24 Hunter Emerick 25 Kraig Kelly 23 Randy Reeves 23 Jason Robertson 21 Robert Kleinke 21 Steve Hurley 20 Chad Robb 18 Don Lulay 12 Brett Tallan 12 Ricky Fast 10

Chad Montgomery 10 Chris Rasmussen 10 Gary Epping 10 Brent DeHart 9 Tim Roth 8 Jim Sparkman 8 Becky O’BrienGardinier 6 Leslie Savage 6

New & Reinstated Members Advanced Construction & Business Services, LLC Andrea Venezio 225-288-2936 Black Line Glazing Darand Davies 503-878-8585 D Carmona Construction LLC David Carmona 503-917-1516 Dream Home Construction Larissa Martinez 503569-4397 Spike: Jake Martin Imperial Cabinets & Millwork, Inc. Elena Martinov 503-805-7800 Spike: Andrew Wheeler Nicholas Wavra Nick Wavra 503-984-3320 Spike: Caleb Remington Mountain View Masonry LLC Tony Jones 503-434-0639 Spike: Mike Riddle 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.

Box Painting Ben Aeby 503-445-1500 EverFab Daniel Bryan 503-303-3300 Quality Sales Jessica Halberg 503-577-5546 Michael Angelo Exteriors Inc. Michael Angelo Migliorini 503-391-9817

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 2021 | The Chalkline | 3

President’s Message As we cross the halfway point of 2021, we are eagerly anticipating in-person HBA events! There are three events coming up that we want you to keep on your radar, so mark your calendars and stay tuned for more details:

by Nolan Fridley 2021 HBA President

1. Tour of Homes Kick-Off Party, Saturday, July 10th 2. HBA Golf Tournament, Monday, July 19th, Creekside Golf Club 3. Trade Show Night, Thursday, September 23rd, Salem Convention Center Another issue at the front of our mind is soaring lumber prices. Your local NAHB delegates met in early May with several members of Oregon’s Congressional delegation, pressing the importance of federal action to deal with soaring lumber prices. We do not take this matter lightly and understand the grave impact it is having, not only on the construction community, but on the market as a whole.

We will continue to apply pressure on them to act on the matter at a higher level.

to sit at the table and bring up these important issues.

Thank you for partnering with the HBA and working alongside us as we protect and grow our industry. I am excited for the progress we will make together and look forward to seeing you in person this year!

This is just one of the many examples of how your HBA membership makes a difference. It gives us an opportunity

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Lumber and materials costs plaguing builders

By James Day Overall, there are a lot of positive factors out there for home builders. The demand remains strong, interest rates continue to be favorable … and the weather is even cooperating.

But the cost of materials has shot through the roof, adding as much as $35,000 to the cost of a home.

And like a lot of the challenges of 2021, COVID-19 has played a role, said Mike Erdmann, chief executive officer of the Home Builders Association of Marion & Polk Counties.

“When the COVID pandemic hit last spring, the lumber mills brought production levels down thinking that demand would drop due to a slowing economy, when in reality low interest rates sent construction activity higher and there was greater demand from consumers for home improvement projects,” Erdmann said. “The mills have never caught up on this production gap, and it’s created turmoil within the building industry.”

Erdmann was asked about the impact of September’s wildfires and the resultant building boom in the Santiam Canyon and other spots west of the Cascades.

“The fires certainly didn’t help, but this is a national problem affecting the entire building industry across the country and is not caused by the forest fires,” Erdmann said.

How big is the problem?

Last March, lumber was selling for less than $400 per 1,000 board feet, according to Trading Economics, which tracks commodities and other economic indicators. The price approached an all-time high of $1,700 per 1,000 board feet in May before settling down a bit.

“Builder confidence in the market remains strong due to a lack of resale inventory, low mortgage interest rates, and a growing demographic of prospective home buyers,” said Chuck Fowke, chairman of the National Association of Homebuilders (NAHB).

“However, first-time and first-generation home buyers are 6 | The Chalkline | Summer 2021

particularly at risk for losing a purchase due to cost hikes associated with increasingly scarce material availability.

“Policymakers must take note and find ways to increase production of domestic building materials, including lumber and steel, and suspend tariffs on imports of construction materials.”

NAHB has been lobbying President Joe Biden and the administration’s top economic officials in an effort to find solutions.

Builders and suppliers in the mid-valley are well aware of the problems and have come up with some solutions of their own.

But the questions are ahead of the answers at this point.

Here’s a look at the situation from their perspective:

The lumber man John Gooley is vice president of sales for Withers Lumber, which supplies customers from yards in Brooks, Molalla and Silverton. Gooley has been in the business for 45 years.

“Lumber and plywood are particularly vulnerable,” Gooley said.

“They are going up pretty much every Wednesday and Friday, sometimes as much as $50 to $100 per 1,000 board feet.

“We’re at $1,700 now and in March of 2020 we were selling that stuff for $500. It’s the craziest thing I’ve seen in my 45 years in the business.

Planning your supply shipments also has become more important, Gooley said.

“Most lumber (shipments) require four to five weeks of lead time,” he said. “You’ve got to be thinking about what you need four to five weeks in the future.’

Gooley added a new fenced storage area to his operation in Brooks. Instead of a large stack of 2x4s or sheathing his crews have assembled packages of material – lumber, siding, flooring, house wrap – in what almost is a kit for a house.

Lumber and other products are stacked on top of each other, waiting to be shipped out for a six-plex. www.HomeBuildersAssociation.org

Downtown Salem.

Spacious. Clean.

This storage shed of sheathing, used in floor, wall and roof assemblies, represents just a few days of supply for the Withers Lumber facility in Brooks.

“Builders are in a tough place,” he said.

You start your process for a build and then when you are ready to start the house wood is up $5,000 or $7,500.

So you go back to the customer and they have to either put in more cash or increase the size of the loan. We’ve been lucky. We haven’t lost too many customers.

“The lumber market isn’t adjusting.

Waiting is not the answer. The best thing to do is pull the trigger and do it, unfortunately.”

Gooley said that the market is so heated right now that sometimes the increase in value of a home will help offset the wood costs, “especially with interest rates where they are. It’s still a good time to do it, that’s why there is so much business out there.”

Gooley said one builder told him that a house he built last year for $480,000 was going to cost $600,00 this year.

Gooley said that he is also seeing issues with other building products.

“Metal roofing, metal flashing. Dry wall is a big issue. Paint shelves are starting to get empty. Plumbing. We’re having supply problems up and down the whole spectrum. There is a lot of back-ordering of products. Or there is one thing on your list but they don’t have it and it’s two weeks out.”

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The builder Steve Hurley of Banner Homes in Salem has been in the business 30 years.

“It’s very challenging right now,” he said of the lumber price issue. “Nobody’s Continued next page www.HomeBuildersAssociation.org

503.589.1700 This ad is made possible in part by funding from City of Salem Transient Occupancy Tax.

Summer 2021 | The Chalkline | 7

The Price is not Right

continued from page 7

ever seen anything even remotely like this. There is still a huge need for homes. Interest rates are low, but people need to be careful.

“I’m hoping to see a settling down of prices in November or December, but something else can happen, right?”

Hurley also noted supply challenges with rock and concrete and other items.

“It’s roofing. It’s electrical, carpet, flooring. GE appliances are five months out,” he said. ‘I bought 19 refrigerators that we stored. You just don’t know what the next six months are going to look like.”

Hurley said he’s heard through the grapevine that a couple more lumber plants might be opening up to help meet the demand.

“I hope it will settle down. It has to. Some lumber yards aren’t accepting new clients. You really have to prioritize. And when you are sitting on a lot of dirt you can’t just wait it out. You’re paying interest on that dirt. You can’t be idle.

“And this is not a knock on Salem but it doesn’t have the salaries of Eugene, Portland and Bend. There are only so many people who can afford the prices we are setting.”

Lumber orders are stacked outside the Withers lumber yard in Brooks.

Lumber prices have skyrocketed during the pandemic, making homes costlier.

Banner also has experimented with steel framing for two houses under construction in South Salem. The projects have gone slowly, but he said that appeared to be more due to scheduling challenges for his subcontractors rather than the use of steel.

“It’s a great product,” he said, “and there a lot of benefits. It could be a great alternative to wood.”

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We’ve got the inside scoop on all things legal. www.HomeBuildersAssociation.org

HBA NEWS

OSHA Rulemakings for Excessive Heat and Wildfire Smoke Overview Per Executive Order 20-04 from Governor Brown, OSHA, in collaboration with the Oregon Health Authority, advisory committees, and stakeholders, are working towards developing two separate proposed standards to protect employees from workplace exposures to excessive heat and wildfire smoke.

safety Brad Nanke HBA Director of Safety and Training

Preventing Outdoor Heat-related Illness Outdoor workers who are exposed to sudden or excessive heat are at risk of developing heat-related illness. Heatrelated illnesses include, heat rash and cramps, heat exhaustion, and heat stroke. As temperature and humidity increase, so does the level of risk to workers of developing potentially a life-threatening condition, especially when the body is generating its own heat when performing physical work. This situation is particularly serious when hot weather arrives suddenly or early in the season before workers have had time to adjust to warm weather.

• Engineering, administrative, and personal protection equipment controls to address potentially harmful exposures; • Employee training and instruction; and • Potential fiscal impacts of proposed rule requirements.

Current topics being reviewed in the Excessive Heat RAC that may be of interest include: • Provision of drinking water and access to shade.

Protection from Unhealthy Levels of Wildfire Smoke

• Allowing preventative cool-down rest periods when the employee feels the need to do so.

Smoke from wildfires is composed of harmful gases and fine particles that can present a significant health hazard to workers exposed to it. These health hazards can continue after fires have been extinguished and cleanup activities begin. The potentially detrimental health effects from exposure to unhealthy levels of wildfire smoke can affect anyone, but workers with asthma, Chronic Obstructive Pulmonary Disease (COPD), or heart disease are at higher risk of serious or fatal health effects when their condition is exacerbated from exposure to wildfire smoke.

• Acclimatization plan that restricts employee duration of work in a hot work environment over a period of 7-14 days.

Over the next several months, Oregon OSHA will be holding virtual meetings for both rulemaking efforts with advisory committees and stakeholders to gather information and begin drafting new occupational health standards on both preventing outdoor heat-related illness and protection from unhealthy levels of wildfire smoke.

The HBA is participating in both rulemaking advisory committees (RACs) as a construction stakeholder. RAC meetings will focus on the following discussion points: • Identification of potentially harmful levels to worker exposures; www.HomeBuildersAssociation.org

Current topics being reviewed in the Wildfire Smoke RAC that may be of interest include: • Air Quality Index (AQI) trigger levels and air quality monitoring requirements.

• Two-way communication systems.

• Control of harmful exposures through engineering, administrative, or respiratory protective equipment.

More information and requests for feedback will be provided in the coming months. The RACs are currently scheduling meetings through September.

For more information and updates on the Excessive Heat and Wildfire Smoke rulemaking process, including the most recent drafts of the rules, please visit the rule making advisory committee pages: https://osha.oregon.gov/rules/advisory/heat/Pages/default.aspx https://osha.oregon.gov/rules/advisory/smoke/Pages/default.aspx Summer 2021 | The Chalkline | 9

HBA NEWS

HBA Gears Up for Return to In-Person Member Events After nearly a year and a half of Zoom meetings and an inability to gather together in person, the Home Builders Association is eagerly gearing up for in-person events once again!

Our first gathering will be the annual opening night Builders Bash kickoff party for the Tour of Homes on Saturday, July 10th.

The party gets rolling at 6:30pm at the New Product House, 2144 Limestone Ave SE in South Salem’s Rock Ridge Estates subdivision. There’s no charge to attend, and spouses, significant others and employees are all invited. NW Natural will be there to cater the event, and you’ll enjoying food and beverages while mixing and mingling with a couple hundred other HBA members.

While there, be sure to check out the fantastic work done by Andre Makarenko and the Comfort Homes team on this year’s New Product House, built to help fund the association’s political action and legal defense funds.

The HBA’s annual Golf Tournament takes place Monday, July 19th.

With the move to Creekside Golf Club this year, we’re looking for an upgraded experience for everyone involved! HomeSmart Realty Group is the Title Sponsor for this year’s tournament, which gets started at 12:30pm. The $125 registration fee includes golf, cart, range balls, lunch, beverages, dinner, on-course contests, a tee prize for every player and awards for the top teams. As this issue of the Chalkline magazine goes to print, limited room remains available in the tournament, so if you’re wanting to play

HOME BUILDERS ASSOCIATION OF MARION & POLK COUNTIES Presented By

ANNUAL GOLF TOURNAMENT Monday, July 19th Creekside Golf Club 12:30pm shotgun start

give the HBA a call at 503-399-1500 to see if we still have room.

For those that don’t golf, but would like to take advantage of the tournament’s marketing opportunities, we have a few hole sponsorships still available. Those hole sponsorships allow you to set up on a hole and greet each of the golfers throughout the day, as well as joining us for the post-tournament dinner that evening.

As we transition out of summer, we’re planning the association’s Industry Trade Show Night on Thursday, September 23rd at the Salem Convention Center. This fun evening allows members to visit with nearly three dozen vendor tables and booths while enjoying hor d’oeuvres, beverages and networking, along with prize giveaways supplied by the vendors and a $500 cash winner at the end of the evening. If you’re looking to take part as a vendor, let us know as we’re already starting to take reservations for the booth and table spaces.

Monthly Member Dinners will start up again in the fall, with a dinner on Tuesday, October 12th and another on Tuesday, November 9th, both at the Salem Convention Center. December 14th will see the Holiday Installation Banquet where we’ll be presenting the association’s annual awards and install the incoming Board of Directors.

We hope you’re as enthused about the return to in-person events and will make plans to join us at these and other HBA activities!

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OHBA NEWS

STATE ASSOCIATION UPDATE Mark Long, CEO

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MEDIUM DUTY DEALER

What is the new normal?

For the first 150 years of Oregon’s history, we conducted state business on a two-year budget and legislative basis. One could argue there was a somewhat predictable nature to the two-year cycle: the legislature would meet for six months and state agencies would take about a year or so to implement legislation under the watchful eye of committee chairs and individual members of the assembly. The legislature set policy and then turned over implementation to the agencies working within that two-year cycle. Today, the legislative body meets every three months to organize their work for Annual sessions. Our overall state budget has changed from 30 billion just 20 years ago to pushing 100 billion now. State agencies no longer wait for specific direction from the legislature instead operating through broad authority transferred to the executive branch from the legislature and at times we now have both branches of our government working on the same issue at the same time. The new normal is an increased amount of laws under consideration and a compressed review and implementation schedule. The new normal is state agencies scrambling to get their work done in a shorter timeframe and similar issues being discussed simultaneously. Let’s look at just a few areas under consideration by both branches of government at the same time:

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Worker protection: OSHA announced last year that it would be working on air quality requirements (AQI) as it relates to wildfire smoke and outdoor worker health. An AQI Bill was also introduced in this session.

Workers Compensation: The Workers Compensation Division (the agency that administers worker benefits) reviewed rules for matters related to workers’ compensation insurance policies due to the pandemic. The legislature also proposed changes to the worker’s comp system due to the pandemic.

Environmental Regulation: DEQ conducted hearings and generated reports on indirect sources of air pollution (Generally non-stationary equipment). The legislature is also reviewing indirect source legislation.

Building Code: the Building code division is reviewing the new reach code language. The legislature is considering a reach code bill.

Land-use: new rules are under review to address wildfire rebuild.

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Continued next page www.HomeBuildersAssociation.org

Spring 2021 | The Chalkline | 11

OHBA NEWS

What is the New Normal?

Continued from page 11

land-use matters.

Now, there can be good and specific reasons why both branches of government need to review the same matter at the same time.

The new normal is that although the legislature meets more often, it appears that duplication of effort is increasing while the amount of review time decreases. With only about six weeks left in this years’ session, the legislature reports that there are about 1300 pieces of pending legislation. The state does not provide real-time data for state agency rulemaking but there are no real-time limits and agencies can adopt permeant rules and temporary rules throughout the year. For the legislature, what doesn’t get passed by July, likely will be back up in February. Any by next April, agencies will be working on a new budget and ideas for legislation for the following January.

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How can you keep informed? Your local HBA’s are a great resource and are the conduit for OHBA Friday Forum and quarterly updates. Each Friday OHBA distributes a weekly tracker covering a variety of topics. Your local HBA office can get you and keep you connected to our new normal of change.

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HBA NEWS

Entries Accepted Through July 1st for Tour of Remodeled Homes The HBA’s third annual Tour of Remodeled Homes is coming up this fall, taking place the weekend of September 18th & 19th, and entry applications are being accepted through July 1st for remodelers looking for a premiere opportunity to visit with hundreds of pre-qualified leads.

We all know how personal the experience of a home remodel is for 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. With the Tour of Remodeled Homes being a ticketed event, those who attend are generally highly qualified leads who are considering having remodel work done on their own homes.

Prior Tour of Remodeled Homes produced 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, the Tour of Remodeled Homes spotlights the incredibly talented remodelers within the HBA’s membership.

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Summer 2021 | The Chalkline | 13

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

31

4

219

23

99

44

64

192

186

862

$427,717

$329,500

$351,154

$349,749

$442,767

$477,170

$423,541

$440,486

$348,398

$395,401

Average Square Footage

2,176

1,456

1,826

1,823

1,921

2,140

2,372

2,071

1,638

1,918

Average Cost per Square Foot

$198

$229

$195

$197

$234

$223

$178

$216

$214

$209

Average Days on the Market

148

72

120

144

157

146

127

130

137

133

Currently Active Listings

1

0

4

2

20

3

0

4

3

37

Units Sold 12 Months to Date Average Sales Price

Sold Units-12 Months to Date

Months of Inventory on Market

Top Area Builders RANK

BUILDER

PERMITS*

1.

DR Horton Inc

94

2.

Forest Ridge Homes

65

3.

Stafford Homes & Land LLC

37

4.

Wind River Homes

36

5.

Lapray Development

35

6.

Don Lulay Homes Inc

24

7.

Hayden Homes LLC

23

8.

Banner Homes

21

9.

Fowler Homes

19

10.

Comfort Homes

18

Data for all areas of Marion and Polk Counties. May 1, 2020 - April 30, 2021.

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

Welcome New & Reinstated Members

continued from page 3

Rivercity Insurance LLC Travis Jones 503-560-1395 Spike: Mike Riddle

Umpqua Bank Cindy Dick 503-930-2148 Spike: Mike Riddle

Ruiz Brothers Construction, LLC Juan M. Ruiz 503-508-295 Spike: John Gooley

Your Home Solutions Lia Sanford 503-881-0031

Taylor Real Estate & Management Nolan Harris 503-581-1813 Spike: Chad Montgomery

14 | The Chalkline | Summer 2021

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Newly Serving Medford • Eugene • Tri-Cities • Idaho Falls

503-581-8787

www.oregontruss.com