Chalkline Summer 2017 by MAP Publications

The

SUMMER 2017

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

A Ray of Workforce Hope

Image by CAREER TECHNICAL EDUCATION CENTER

Developing the Right Work Force �� 5 A Ray of Hope �� 6 20% Tariff Placed on Canadian Lumber ��14

Contents / Membership & Board

2017 Board of Directors

Contents

officers President

Kent Kaufman, Kaufman Homes, Inc. Vice President

Matt Holstege, MC Northwest secretary/TREASURER

Mike Riddle, Mike Riddle Construction, LLC Associate Vice-President

Scott Woodward, Woodward Heating, Inc. Immediate Past President

Phil Klaus, Spectra Construction FORMER Past President

Rob Rardin, Weigel Homes

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 2122

Statesman Spike 500+

President’s Message �� 5 A Ray of Hope �� 6 Tour of Homes ��11

OHBA News Safety Update �� 12 Codes Update �� 18 Green Building �� 19

HBA News Salem Accessory Dwelling Issue �� 20 State Association Update �� 16 Vital Statistics �� 21

Ric McNall 790

Board Members Rod Ashford, Ashford Homes Tim Mametieff, New Crossing Homes, LLC Jason Sawyers, Randy Fultz Custom Homes, LLC Rich Tovar, Wind River Homes Nate Scharer, Northside Electric Trever Pfeifer, Pfeifer Roofing Alan Sorem, Saalfeld Griggs, PC 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 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

Super Spike 250–499 Mike Smith 428 Rick Massey 414 Tim Mametieff 404 John Mills 370 Mike Meaghers 365

Dan Dorn 352 Dean Kaufman 304 Jeffrey Green 293 Chuck Foster 258

New & Reinstated Members Bledsoe Santana Team Realty, LLC Lisa Santana (503) 874-4666 Spike: Jubal Frost

Royal Spike 150–249 Jubal Frost 244 Steve Johnson 224 Don Druliner 199

Tom Wheeler 172 Ken Hannegan 154 Rick Ziebell 154

Red Spike 100–149 Randy Fultz 144 Kelvin Dettwyler 141

Rob Rardin 117

Green Spike 50–99 Jerry Page 95 John Hammer 92 Rich Kansky 79 Larry Bilyeu 75 Mike Riddle 71 Bob Cavell 65

Dennis Downey 64 George Suniga 64 Matt Endler 59 Mike Smith 56 Jeannette Moore 54 Eric Olsen 53

Life Spike 25–49 Kerry Kuenzi 47 Steve Herr 46 Brad Moore 46 Kent Kaufman 46 Chris Pfeifer 42 Patrick Jackson 42 Jim Hobbs 40 Randy Melton 40 Ryan Bloedel 39

Don Sturgeon 38 Serge Serdsev 36 Tim Youngkin 34 Tim Kelsh 34 Eric Templeton 31 Rich Fry 26 Matt Holstege 26 David Hafner 25

Blue Spike 6–24 Rich Clausen 23 Laura Dorn 21 Mark Shipman 21 Kraig Kelly 20 Kevin Stone 20 Jason Robertson 19 Randy Reeves 19 Peter Strauhal 19 Robert Kleinke 17 Hunter Emerick 17 Caleb Remington 17 Kimberly Hosmer 14 Don Lulay 12

Buck Bailey Design Buck Bailey (971) 227-2628 Spike: Kent Kaufman

Philip Pahlisch 11 Ricky Fast 10 Brent Pence 10 Jim Sparkman 8 Mark Wulf 8 Tim Roth 8 Gary Epping 8 Mike Giles 8 Steve Hurley 8 Alan Wilding 7 Chris Rasmussen 6 Nigel Guisinger 6

Dwell Design Studio Katya Waff Grisaffi (503) 422-8500 Spike: Mike Riddle Jeld-Wen, Inc. Jennifer Jones (541) 591-6950 Spike: John Gooley Premier NW Insurance Travis Jones (503) 371-8115 Spike: Mike Riddle

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.

Michael Angelo Exteriors, Inc. Michael Angelo Migliorini (503) 949-5371 Fireside Home Solutions Laura Hertner (503) 684-8535 H.P. Mandal & Associates, Inc. Michael Mandal (503) 981-1403

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 2017 | The Chalkline | 3

WHERE MEANS SOMETHING

YOUR LOCAL LENDER 503.485.2222 WVBK.COM

Keith Owen Excavation | Sitework | Utilities CCB# 165861 P.O. Box 21150 Keizer, Oregon 97307 cell. 503.932.4176 office. 503.390.6936 fax. 503.390.6938 keith@owenconstructioninc.com 4 | The Chalkline | Summer 2017

www.HomeBuildersAssociation.org

President’s Message

Developing The Right Workforce Unless you are hiding under a stack of lumber somewhere, surely you are aware of and affected by the current construction labor shortage. If you have been trying to hire, it’s likely you aren’t enjoying the process. Trying to schedule subcontractors who are overbooked and understaffed is another headache. Finding reliable construction employees, let alone trained ones, seems to be more and more difficult. This trend was highlighted for me personally when we recently were hiring office staff. We had a position available for accounts payable and with a Craigslist ad, we whittled down a stack of over 50 applications and ended up hiring an excellent fit within a couple weeks. We were surprised at the overwhelming response as well as the experience and training that many applicants came with. On the contrary, when hiring construction labor, our continual efforts through Craigslist, placement/temp-to-hire firms, Facebook, and word-of mouth only turn up an occasional applicant. Even then it seems there is still less than a 10% chance the applicant will “make the cut”. Why the shortage? In addition to the mass exodus of laborers from the construction industry during the Great Recession (17% fewer people) the Bureau of Labor projects the employment of construction laborers to grow 13% from 2014 to 2024. Average growth is 7%. Labor shortages in the trades is also partially due to our lack of training up our young workforce. Another study by Janicki and McEntarfer shows that in 2012-2013 we were hiring a 5% less in the 19-25 age sector than in 2006, a continual downward trend. What’s the answer? The National Education Association (NEA) did a report in 2012 regarding Vocational Education titled “Reality Check”. In their report, they state 70% of our work force does not have a bachelor’s degree, and 51% of high school students are not going to college. They also have found that since 1990 high school graduates have been taking fewer credits in vocational education, and are taking more academic courses. They conclude the following: While the nation has been emphasizing the importance of students getting college degrees, it is equally important to develop policies to provide more high-quality vocational education in high schools given that more than two-thirds of the jobs in the nation do not require a Bachelor’s degree. www.HomeBuildersAssociation.org

President’s Message by HBA President Kent Kaufman

Enhanced vocational education at the high school level would provide an alternate career path to one-half of the student population who have chosen not to go to college. Well-developed vocational education programs should help prevent students from dropping out and help them land a job soon after graduation, thereby potentially reducing a broad range of social, economic, and political problems. So the good news is that government is realizing the problem, and the public school system is changing because of it. The very good news is that we have a new state of the art career/tech high school in our community. After great effort and the philanthropy of Mountain West Investments, the Career and Technical Education Center (CTEC) opened in Salem for the 2015-2016 school year. They are wrapping up year 2 and have been proving themselves to the community. Working in partnership with CTEC is the non-profit Advanced Construction Education (ACE, formerly known as ConTech) which is training high school students all about the construction process, and engaging them in the entire process of building a home each year. Several of our own HBA members have been engaged in the efforts and are donating time and money to the effort. CTEC also hosts an annual Career Fair in order to connect their students to opportunities in the community, apprenticeships, college programs, and employment. Please take the opportunity to get involved with CTEC! I would encourage you to talk to Norma Sanchez at 503.399.5511, or email her at sanchez_ norma@salkeiz.k12.or.us to find out how to get involved. In the meantime, enjoy the summer and best of luck finding the crews and help you need. Summer 2017 | The Chalkline | 5

A Ray of Hope CTEC Already Paying Dividends in Construction Trades By James Day

Help is on the way for Mid-Willamette Valley contractors and others in the building trades looking for qualified workers.

“I am extremely happy with the students,” said Day, president and general manager of the company. “They have upgraded our operation with their skill sets.”

The Career Technical Education Center on Portland Road is finishing up its second year, with 45 students set to graduate out of its residential construction program.

Day has used CTEC students as general laborers, with duties such as reinforcing steel, preparing forms, equipment examination and cleanup and the pouring of concrete.

“The one thing we hear from our members is that they are desperate for employees,” said Mike Erdmann, CEO of the Home Builders Association of Marion & Polk Counties. “Everybody is looking … but they’re just not out there.

“These kids are polite and attentive,” Day said. “They listen … and put things into effect. They are good at problem-solving. The shake your hand and look you in the eyes. They just do a phenomenal job out there.”

“(CTEC) has the potential to make a real significant impact on the labor force in the industry. In 10 years that’s the potential for 400 to 500 kids moving into the construction workforce.”

In the middle of the action at CTEC is Alex Olsen, the residential construction instructor. And given that CTEC is an unusual mix of private industry and public education it’s not surprising that Olsen has an unusual resume.

Some students already are doing so. Rick Day of the Advantage Business Group in Salem has hired CTEC students on a part-time basis during the school year and deploys the students full time during the summer.

Olsen has a carpentry background and ran his own home renovation and design company until selling it in 2007. He served as a dean at the Oregon School for the Deaf before joining CTEC in 2014. “I’m a finishing carpenter with a master’s,” Olsen said in an interview at that spacious construction shop at CTEC. Olsen, in fact, predates the building. The first year of the program there was no shop, with Olsen shuttling kids from their feeder high schools directly to job sites. He had six students from McKay High School and seven from South Salem. And as has become the CTEC model, each construction class participates in building a house from the ground up.

“They take pride in that,” Olsen said. “ ‘I built that house.’ The mind-set Students work on a framing project in the construction shop at the Career Technical and pride that comes with that Education Center. Students learn a wide variety of building trade skills as well as take courses in English, math and computer-assisted design CAREER TECHNICAL EDUCATION CENTER cannot be overstated. It makes the program powerful.” 6 | The Chalkline | Summer 2017

www.HomeBuildersAssociation.org

Olsen’s students learn framing, carpentry, siding, electrical and plumbing work, and they build foundations with donated materials. In the adjacent classroom they learn the English, math and computer-assisted design skills that will serve them in the field. In English the students work on presentation skills, pitching a Career Technical Education Center construction students work on a small structure in the construction product, developing a marketing shop. The innovative center is a partnership between the Mountain West Investment Corporation and plan, doing research. Olsen the Salem-Keizer School District CAREER TECHNICAL EDUCATION CENTER assigned the students a project of building a “cat house,” which Students who want to move on to fields such required design skills, accounting and determining how engineering or architecture will need a college degree, much the project would cost. Converting board feet into but Olsen notes that some students “do not want to go square footage. to college.” “You gotta have the math right,” Olsen said. “The integrated instruction we have here is the ‘secret sauce.’ Students get it when their work is meaningful and purposeful.” Students in the construction program receive dual credits with Portland Community College. CTEC’s digital design program is linked with Chemeketa.

He told a story of one South Salem student from that first year who was intrigued by a state building codes division presentation. “She was hired as an inspector and is making north of $40,000 and she’s 19,” Olsen said. “Will she go to college? Probably. But she wanted to get out there and see what was available. It’s not an either or thing.”

About The Career Technical Education Center •CTEC, a public-partnership involving the Mountain West Investment Corp. and the Salem-Keizer School District opened in the fall of 2015 with 140 high school juniors and seniors. •The program will have approximately 500 students this fall, with plans for 1,000 at build-out for the 2019-20 academic year. •CTEC is based in a 150,000-sq.-ft. facility on Portland Road in Salem on the site of the former Neilsen sheet metal plant.

www.HomeBuildersAssociation.org

•CTEC started with programs in residential construction and commercial manufacturing, has added digital design and cosmetology and plans to add six more fields of study – agricultural science, business, collision-automotive repair, aviation technology, public safety and culinary. •Each week students spend 2.5 days at their regular high schools and 2.5 days at CTEC, with dual credit applied to both their high school transcripts and colleges such as Chemeketa and Portland Community College. English, math and computer-aided design are included in the CTEC curriculum. Summer 2017 | The Chalkline | 7

CTEC maintains close ties with area industries, with individual advisory councils for each discipline. Erdmann and other HBA members serve on the construction council, with Day participating with manufacturing group. “That’s a significant benefit,” Olsen said. “It helps us stay relevant and it brings resources and industry right into the classroom.” And the shop. Area firms such as Parr Lumber, Hampton Lumber, Pfeiffer Roofing, Riverbend Sand and Gravel, Advantage Business Group – and others -- all have donated materials and time to CTEC. And the school office. In another unique facet of the CTEC experiment the Salem Area Chamber of Commerce has a business liaison, Norma Sanchez, working at CTEC.

Alex Olsen, who describes himself as a finishing carpenter with a master’s, leads the construction department at CTEC. PHOTO BY JAMES DAY

“My role is to be the connector between industry and Day of Advantage Business Group, which has donated a the students,” said Sanchez, who noted that businesses forklift and a three-phase feeder welder, is all in. tell her how impressed they are with CTEC and “how “Anything they need I’m happy to provide it,” said Day, who eager they are to hire our students. I think CTEC has was among the business leaders who helped plan CTEC. given business hope.” “We want to support them in very way we can.” Sanchez organized a May 15 career day in which companies came to CTEC looking to hire students.

Phone: 800-553-2848 • Cell: 503-551-4491 www.powerautogroup.com Fax: 503-769-4367 • pfitzner@powerautogroup.com FLEET & COMMERCIAL SALES

Put POWER In Your Business! We offer the following new franchises and over 700 used vehicles, including many used commercial vehicles.

Phil Fitzner HBA Board Member

Contact Phil today for you Business Preferred price and your NAHB GM discount! 8 | The Chalkline | Summer 2017

www.HomeBuildersAssociation.org

HBA Safety Training Schedule 2017

Fall Protection Safety June 22, 2017 – 8:30 am – 9:30 am

Forklift Safety July 27, 2017 – 8:30 am – 10:30 am Ladder Safety August 24, 2017 – 8:30 am – 9:30 am Silica Safety September 21, 2017 – 8:30 am – 9:30 am Fall Protection Safety October 26, 2017 – 8:30 am – 9:30 am Nail Gun Safety November 30, 2017 – 8:30 am – 9:30 am

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

We will cover the changes, how to avoid OSHA violations and fall protection suggestions. Ladder Safety: We will cover the OSHA rules, proper set-up, inspections, storage, and usage. Nail Gun Safety: We will cover safe usage, inspections, and maintenance. Silica Safety: This seminar will cover the new Oregon-OSHA rules, Silica Dust Exposure Control Plan and Table 1’s control measures. Forklift Class: This seminar will review the Oregon-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 – Date: _________ Class Name: _________________ Company _________________________________________________________________ Attendee Name(s) __________________________________________________________ Phone __________________ Fax _________________ Email _______________________ Please fax this registration form to the HBA office @ 503-399-0651

www.HomeBuildersAssociation.org

Summer 2017 | The Chalkline | 9

HBA News

2017 HBA Golf Tournament Monday, June 26th Salem Golf Club 12:30pm Shotgun Start Scramble Format

Includes Golf, Cart, Tee Prizes, Lunch, On-Course Beverages, Prizes and Dinner Lead Golfer: ___________________________________________ Company: ______________________________________________________ Phone: _______________________

Official USGA Handicap _______ - or -

Average Score _______ (if golfer does not have official handicap)

Player #2: _____________________________________________ Company: ______________________________________________________ Phone: _______________________

Official USGA Handicap _______ - or -

Average Score _______ (if golfer does not have official handicap)

Player #3: _____________________________________________ Company: ______________________________________________________ Phone: _______________________

Official USGA Handicap _______ - or -

Average Score _______ (if golfer does not have official handicap)

Player #4: _____________________________________________ Company: ______________________________________________________ Phone: _______________________

Official USGA Handicap _______ - or -

Average Score _______ (if golfer does not have official handicap)

_____ member golfers at $99/player

= $________

_____ non-member golfer (max of 1) at $129/player = $________ total

= $________

ď ą Check ď ą Visa / MC / Discover/AMEX # _______________________________ Expires: ___________

Presented By

CCV ______

Name on Credit Card _______________________________________ Billing Adress _____________________________________________ Billing Zip Code ______________

Register online at www.homebuildersassociation.org or return this registration form to the HBA fax to 503-399-0651 mail to 2075 Madrona Ave SE, Suite 100, Salem, OR 97302 or email to jhuntington@homebuildersassociation.org Teams will not be reserved until payment has been received in full. Teams must be made up of at least 3 HBA members. Players will be treated as scratch golfer (handicap of 0) if no handicap or average score is submitted with entry. Single golfers not registering as a part of a full team will be accommodated on a space available basis only.

10 | The Chalkline | Summer 2017

www.HomeBuildersAssociation.org

HBA News

Tour of Homes Opens June 17th – 25th

Supporting Sponsors:

The 2017 HBA Tour of Homes presented by NW Natural and Melton’s Heating & Air Conditioning opens on June 17 with 28 homes on display from 24 of the Association’s premier builders. The Tour runs June 17–25, hours noon to 6 pm on weekends and 6 pm to 9 pm weekdays. Home prices in the 2017 Tour range from the more affordable, just above $260,000, to more custom, luxury, homes with the highest priced at $1,500,000. As in years past, most of the homes are located in the Salem area, but several are located in surrounding communities including four in Dallas, two in Turner, one in Keizer, one in Sublimity and two in Mount Angel. To view the homes, make sure to get the June 14 edition

of the Statesman Journal, which will include the Tour of Homes Guidebook, or check the Tour website after June 12 at www.HBATourofHomes.com. We are also offering a mobile app, paradecraze. Go to the Android or iOS App Store to download the paradecraze app with its turn-by-turn directions, attractive layout, and increased usability. A special thank you to this year’s co-presenting sponsors of the Tour of Homes, Melton’s Heating & Air Conditioning and NW Natural, along with our supporting sponsors Cherry City Interiors & Design, Hear No Evil, Home Smart Real Estate, and The Fixture Gallery/Consolidated Supply.

Builder’s Bash Kick-off Event Don’t forget to attend our Tour of Homes celebration! Builder’s Bash: The Great Northwest will take place Saturday, June 17th, 6–8 pm at the 2017 HBA Showcase House on Pikes Pass Street SE in Salem in Rockridge Estates. Join your fellow association members as we thank volunteer builders Rick Massey of Richard Massey Construction and Tim Mametieff of New Crossing Homes, and all of the many subcontractors and

www.HomeBuildersAssociation.org

material suppliers who generously contributed to the success of the 2017 HBA Showcase House. The meal, which will feature the flavors of the Great Northwest, will be provided by NW Natural and the brews and wine courtesy James Hardie Building Materials. There is no cost to attend. HBA members, employees, and significant others are encouraged to attend this fun (and free!) event. RSVP to HBA by June 17 at 503-399-1500 or online at www.HomeBuildersAssociation.org. Summer 2017 | The Chalkline | 11

OHBA News

Post-injury Drug Testing New Rules Prohibit Retaliating Against Employees For Reporting Work-Related Injuries And Illnesses SAFETY UPDATE

David Davidson HBA Safety Management Consultant

using drug testing, or the threat of drug testing, as a form of retaliation against employees who report injuries or illnesses.” The new rules also affect how employers can use incentive programs.

Oregon OSHA recently published two new fact sheets that provide additional guidance and clarification to help employers understand how to comply with new recordkeeping rules that go into effect May 1, 2017. The new rules prohibit retaliating against employees for reporting work-related injuries and illnesses.

View the Oregon OSHA fact sheets:

When federal OSHA enacted these rules in late 2016, they raised questions that required more clarity on a portion of the new rules that “prohibit employers from

Incentive programs http://osha.oregon.gov/OSHAPubs/factsheets/fs69.pdf

Post-incident drug and alcohol testing http://osha.oregon.gov/OSHAPubs/factsheets/fs70.pdf

Since 1978 Residential Your Automotive Experts

503.393.3185

www.PfeiferRoofing.com

4835 Ridge Dr NE • Salem, OR 97301

Specializing in fleet repairs and personal automotive care 2880 22nd St SE • Salem, OR 97302 503.399.2149 • service@carsalem.com

• Commercial

HBA Member Since 1983

CCB# 119214

ROOFING • REPAIRS • GUTTERS • SKYLIGHTS

You build it. We’ll help them buy it. Founded in 1960 as the financing arm for a builder, Guild Mortgage has worked with the builder community since day one. As Oregon’s #1 purchase lender, we’ve helped build strong communities across the Willamette Valley.

Table 8

Turn your inventory into homes—let’s talk. Guild Mortgage Salem Branch | NMLS #1140900 2601 25th St. SE, Ste. 350 | Salem, OR 97302 O: 503.779.2703 | Nosotros hablamos español. Company NMLS #3274. Guild Mortgage Company is an Equal Housing Lender. ML-176. #1 lender based on the December 2016 Corelogic report.

12 | The Chalkline | Summer 2017

www.HomeBuildersAssociation.org

OHBA News

Oregon’s New Minimum Wage Rate Oregon’s minimum wage rate changes again on July 1, 2017. Businesses will need an updated minimum wage poster. Print one off at https://www.oregon.gov/boli/TA/ Pages/Req_Post.aspx

Date

Standard

Portland Metro

Nonurban Counties

Jan. 1, 2016

$9.25

Enacted by the 2016 Oregon Legislature, Senate Bill 1532 establishes a series of annual minimum wage rate increases beginning July 1, 2016 through July 1, 2022. Beginning July 1, 2023, the minimum wage rate will be indexed to inflation based on the Consumer Price Index (CPI), a figure published by the United States Bureau of Labor Statistics.

July 1, 2016

$9.75

$9.50

July 1, 2017

$10.25

$11.25

$10.00

July 1, 2018

$10.75

$12.00

$10.50

July 1, 2019

$11.25

$12.50

$11.00

July 1, 2020

$12.00

$13.25

$11.50

July 1, 2021

$12.75

$14.00

$12.00

In addition to a new standard minimum wage rate, the bill sets out a separate rate which will apply to employers located in the urban growth boundary of a metropolitan service district. (Currently, only the Portland metropolitan area has an urban growth boundary.) Finally, a third rate will apply within certain “nonurban” counties named in the bill:

July 1, 2022

$13.50

$14.75

$12.50

Adjusted annually based on the increase, if any, to the US City average

July 1, 2023

Consumer Price

$1.25 over the

$1 less than the

Index for All Urban

standard minimum

Consumers

wage

Portland Metro The Portland Metro rate applies to employers located within the urban growth boundary (UGB) of the metropolitan service district. •Search by address to determine whether a site is located inside the UGB with Metro’s Urban Growth Boundary lookup tool at: http://www.oregonmetro.gov/ libraryurban-growth-boundary/lookup

INSURANCE

COMMERCIAL DIVISION Richard Davis, CIC rdavis@mapsinsurance.com 503.779.1850

•A map of the UGB is also available for download at: http://www.oregonmetro.gov/sites/default/files/2015_ urban_growth_boundary_UGB_map.pdf

Insurance and Risk Management Solutions

The nonurban rate applies to employers located within the following counties:

• Contractors and Performance Bonds

Baker Coos Crook Curry Douglas Gilliam Grant Harney Jefferson

Klamath Lake Malheur Morrow Sherman Umatilla Union Wallowa Wheeler

www.HomeBuildersAssociation.org

• General, Professional, and Management Liability

• Workers Compensation… and More Meet our commercial division … With over 100 years of combined experience meeting the insurance needs of the Salem community.

mapsinsurance.com commercial@mapsinsurance.com Summer 2017 | The Chalkline | 13

Trump Administration Imposes 20% Tariff on Imported Canadian Lumber The Trump administration imposed a 19.88% tariff on Canadian softwood lumber imports in late April, causing much concern within the building industry about the impacts of the new tariff. Anticipation of the pending tariff increased the price of lumber by 22% between the start of the year and late April, and an analysis by the National Association of Home Builders (NAHB) estimates that the tariff will increase the price of an average single-family home by $1,236. NAHB estimates that more than 8,000 full-time jobs will be lost this year as the result of the decision by the U.S. Department of Commerce to impose the tariff. That’s in stark contrast to comments made by Commerce Secretary Wibur Ross that the new duties will have little effect on the cost of new homes. Due to “special circumstances,” the duties will be retroactive 90 days from the date that the rates are officially published in the Federal Register, likely back to the beginning of February. NAHB senior economist Paul Emrath estimates that the annual impact of the 19.88% duty, if in effect throughout 2017, would be a loss of: $498.3 million in wages and salaries for U.S. workers $350.2 million in taxes and other revenue for governments in the U.S. 8,241 full-time U.S. jobs Many of the jobs are in construction, but the effects are not limited to a single industry, as wages and jobs are also lost in businesses that sell and transport building

Reviewing risks and

managing exposure.

“Clearly, protectionist measures to prop up domestic lumber producers at the expense of millions of U.S. home buyers and lumber users is not the way to resolve the U.S.-Canada trade dispute or boost the U.S. economy.” - Granger MacDonald NAHB Chairman materials, provide architecture and engineering services, etc. Some jobs are gained in the U.S. sawmill industry, but this is almost entirely offset by losses in other manufacturing industries. In total, 25 or more jobs are lost in 31 different detailed industries. These losses of wages, jobs and taxes are net losses that take the increases in wages, jobs and taxes in the domestic sawmill industry into account. Jobs are measured in Full Time Equivalents (enough work to keep a worker employed full-time for a year). The analysis is for calendar year 2017, assuming that some of the impacts have already occurred as markets have anticipated the Commerce Department announcement. “NAHB respectfully disagrees with comments made by Commerce Secretary Ross that the tariffs on Canadian lumber imports into the U.S. will have little effect on the cost of housing,” said NAHB Chairman Granger

Good insurance protection begins with an in-depth analysis of risks that face your workforce, buildings and assets. We make sure our clients are protected from the liabilities their companies face. Contact TJ Sullivan for a review and a free quote.

TJ Sullivan 503-585-2211

Huggins.com 14 | The Chalkline | Summer 2017

www.HomeBuildersAssociation.org

MacDonald. “While Ross cannot cite specific consequences regarding this punitive tariff, we can. “Clearly, protectionist measures to prop up domestic lumber producers at the expense of millions of U.S. home buyers and lumber users is not the way to resolve the U.S.-Canada trade dispute or boost the U.S. economy.

White House and seek solutions that will not harm housing affordability for millions of hard-working American families,” MacDonald said. CNBC also broadcast a story citing NAHB statistics and quoting MacDonald, who said the tariffs are “short-sighted” and will “harm consumers and housing affordability.”

“As an industry that is on the front lines of this issue, NAHB would be happy to discuss this matter with the

SALEM 4050 Salem Industrial Dr. NE 503.390.9193 Mon-Fri 7AM - 5PM Sat 8AM - 1PM If you’re starting a deck project,we can help. Parr carries a variety of natural and composite deck materials to fit your need and budget. Let us help with your deck design. Pick up a copy of our Deck Design Planner at our Salem Parr location or go to parr.com to download a copy.

www.HomeBuildersAssociation.org

PARR.COM

Summer 2017 | The Chalkline | 15

State Association Update Jon Chandler, CEO

Pro-housing Legislation Considered by the Legislature

If you’ve been following our legislative emails and website posts, you know that there’s a fair amount of unpleasant stuff being done this session. Not a lot that singles us out directly, but a whole lot that affects business generally – and if you check our website (www.oregonhba.com), you’ll find a report giving you all the details. At the time of this writing, the legislature is heading at a dead run towards the first of several internal deadlines, so we won’t know for sure which bills are still alive for another week or so. But for this month’s column, I thought I’d talk about some of the good things that have happened so far. The two bills that would have repealed our no-voting-on-annexation bill from last session have both died. Hearings were held, but no action taken – there was simply no appetite for revisiting that issue. We were successful in derailing a couple of very bad bills. One that would have allowed SDCs for disaster resilience and one that would have reopened the old school SDC fight. Our bill to set up a task force to revisit SDC law moved out of committee unanimously, which is always a good sign. But the most important bill we’ve been working on is HB 2007; this is one of the Speaker’s priority bills, dealing with increasing housing production, and we have been working with Speaker Kotek’s staff and 1000 Friends

16 | The Chalkline | Summer 2017

to come up with what I think is going to be one of the best pieces of pro-housing legislation that we’ve ever developed. It’s still early, so we don’t know for sure how much of the bill is going to survive the process, but having it be one of the Speaker’s take-home bills dramatically increases the chances that it will make it, of course. Key components are: Requiring cities and counties to process affordable housing (defined in the bill) permits in 100 days, without slowing down other permit processing. Directing (and funding) the Department of Land Conservation and Development (DLCD) to analyze what the average development timeline is and to develop ways to reduce barriers and to speed up the approval process for consideration by the 2019 legislature. Dramatically tightening up the existing Clear & Objective standard requirement by saying that cities and counties cannot deny an application if it complies with the C&O standards OR if the application would have been approved but for design review problems. Closes the “surplus housing” loophole that Corvallis and other cities have been using by making it clear that clear and objective standards applies to all housing, including mixed use, not just “needed” housing or housing on the jurisdiction’s buildable lands inventory.

www.HomeBuildersAssociation.org

Umpqua Bank Home Lending

Limiting the ability of cities and counties to reduce density below the zoned density, unless necessary for health and safety reasons. Prohibiting the use of historic district designations from being used to reduce density or prevent infill and redevelopment. Require cities and counties to allow Accessory Dwelling Units and duplexes as outright uses in every singlefamily zone. Allowing religious organizations to build affordable housing on their land. As you might imagine, the cities – particularly the city of Portland – are screeching like mashed cats about this bill, but I don’t think they have much of a case to make. This bill will make it easier to develop and build more housing, affordable and market-rate, and that’s what the cities say that they want…which means that arguments based on local control aren’t likely to get very far.

Tracy Hewitt Like I said, it’s still earlyHome in the process, but I think we Loan Officer have an excellent chance of getting a pro-home building NMLS #268399 CALL 503-945-2107 bill out of this session. Stay tuned. TracyHewitt@UmpquaBank.com umpquabank.com/thewitt

FLUENT IN CONSTRUCTION FINANCING Call me today!

TRACY HEWITT

Home Loan Officer NMLS 268399 CALL 503-945-2170 TracyHewitt@UmpquaBank.com umpquabank.com/thewitt

245 Commercial St. SE, Suite 200, Salem, OR 97301 Member FDIC Equal Housing Lender

NMLS #401867

HLD17.199_MAR

REACH YOUR TARGET - GROW YOUR BUSINESS To reserve your advertising space now contact Jerry Stevens 541-944-2820 jerry.s@mtangelpub.com

You supervise the big picture. We’ll read the small print. Our Construction Industry Group advises construction and design professionals on:

• Lien preparation and enforcement • Contract preparation and enforcement • Insurance disputes and coverage • Davis Bacon and prevailing wage matters • Fringe compliance, retirement and health plans, defined benefit retirement plans, and union plans • Litigating construction disputes, including disputes with Construction Contractors Board Contact our Construction Industry Group today. 503.399.1070 | www.sglaw.com

www.HomeBuildersAssociation.org

Summer 2017 | The Chalkline | 17

OHBA News

Code Update Alternate Construction Standards Now in Hands of Building Official By Howard Asch OREGON HOME BUILDERS ASSOCIATION Some builders and developers have had the local fire department insist that residential sprinkler systems be installed when a building site did not meet fire code standards for access or water supply. A Uniform Alternate Construction Standard issued by Building Codes Division has removed the decision for what to do when access and supply is not adequate from the fire department and placed the responsibility with the local building official and provided specific alternatives to be allowed. This standard gives authority to the building official, not the fire official, to apply alternatives when the fire official has determined the water supply or emergency vehicle access is not adequate. The building official must consider the advice of the fire official, but the decision of which alternatives will be allowed rests solely with them. An example when this would apply is a lot with a narrow driveway or excessive slope so that fire equipment cannot access the building.

5/8” type-X gypsum board or what needs to be compartmentalized to meet the intent of these options so it will be necessary to work out a plan with the building official. This should be done at the design phase to prevent problems at plan review. The options are available for any lot of record created on or after January 1, 2002. The building official must also have provided notice that they intend to allow these Uniform Construction Standards and provide it in conjunction with any land use application. It may behoove you to contact the building official and encourage them to provide this notification if they have not already done so to allow use of the alternatives. If they have not, the building may be required to comply with fire code access and water supply requirements.

There are six options the building official can choose from. These are the only options available. The building official can require any one, or a combination of options which in his opinion will provide a reasonable alternative to proper access or water supply. A builder or developer can request a particular option, but the building official will determine whether or not to accept the requested option. The options available are: •Installing a NFPA 13D (residential) fire suppression system. •Install a partial NFPA 13D (residential) fire suppression system. •Installing additional layers of 5/8” type-X gypsum board. •Compartmentalizing the dwelling with fire-resistant rated assemblies to limit spread of fire. •Installing fire-resistive exterior wall and roof coverings. •Providing fire separation that complies with the standards of the Oregon Department of Forestry Wildland-Urban Interface rules. It is not clear what may constitute a partial NFPA 13D fire suppression system, what areas need additional 18 | The Chalkline | Summer 2017

www.amerititle.com

www.HomeBuildersAssociation.org

OHBA News

Green Building Manual J – Not Rule of Thumb – Creates Balance and Comfort By Howard Asch OREGON HOME BUILDERS ASSOCIATION According to the National Comfort Institute around half of the new HVAC systems being installed have comfort issues or don’t operate as efficiently as they should. The Energy Star program says that incorrect installation of HVAC systems can reduce efficiency savings by up to 30 percent.

was supplied to it. This will require equipment such as balometers and manometers to measure air flow and static pressures. Fans need to be adjusted to yield proper air flow. Ducts should be checked to be sure they do not leak. The proper filters should be used.

Complaints range from temperature variations from room to room, inconsistent air flow from registers, condensation from high humidity or excessive dust in some areas. These all occur because the system is not correctly balanced. Incorrect balance can also cause greater pressures in some areas which will push the conditioned air through gaps in the air barrier; and lower pressure in other areas which will suck in outside air. The house can be both pushing air out and pulling it in at the same time. That can happen even if the duct work is properly sealed. The solution to making an HVAC system operate efficiently and comfortably starts with using the Air Conditioning Contractors of America Manual J to correctly design the system to get all the parts sized right. Rule of thumb is not adequate to get the right air flow to each room at the right pressure and temperature. The installed system needs to be tested to assure the right amount of supply air is entering each room and that the return air system is taking all the air out of each area that

A properly balanced system allows the equipment to operate at its highest efficiency and save the customer money. It reduces drafts, cuts temperature variations and solves condensation problems from higher humidity levels in some rooms. Proper air flow will reduce the amount of dust carried in the air. Attention to these details will leave the customer satisfied and comfortable and reduce energy costs.

WWW.STAYTONBUILDERSMART.COM

Tabitha L. Solberg Principal Broker/Realtor® - Oregon “Trustworthy Loyal Service” SolbergRealtyInc.com

BUILDING MATERIALS & HARDWARE RESIDENTIAL & COMMERICAL GRI®/ABR®

Direct 503-910-2244

Free Delivery to select zip codes (Minimum $250). Call for details

1080 Wilco Road

• 503-769-7118

www.HomeBuildersAssociation.org

Buying, Selling, New Construction, Bare Land, Acreage Properties, Relocation, just to name a few. Call me today and put my Knowledge, Experience, Great Service and Resources to work for YOU.

Summer 2017 | The Chalkline | 19

HBA News

Salem Close to Allowing Accessory Dwelling Units Salem property owners will soon have the option to add an Accessory Dwelling Unit (ADU) to their property, if the Salem City Council agrees with a recommendation made by a city advisory committee. The recommendation to allow ADUs was made by the city’s Housing Choices Advisory Committee, with a few modifications proposed by the Salem Planning Commission. It is expected that the City Council will hold a public hearing on the ADU proposal sometime in June. Currently, Salem is the largest city in the state that doesn’t allow ADUs. While ADUs are typically thought of as separate accessory buildings to a main house, they could also take the form of garage or basement conversions. The new proposal would allow the addition of an ADU up to 900 square feet in size, or 75% of the gross floor area of the main house, whichever is smaller. Detached ACUs would be permitted in rear and side yards, as long as setback requirements for ADUs were met. Setbacks for ADUs would be 12 feet from an abutting street, except 20 feet if located along a collector or arterial street. Side yard setbacks would be 3 feet, and rear yard setbacks would be 5 feet, except 1 foot in the rear yard if the ADU is adjacent to an alley. Attached ADUs would have to meet the same setback requirements as single-family homes in the given zone (e.g. 3 or 5 feet in the side yard and 14 or 20 feet in the rear yard in the Single Family Residential zone). Lots with ADUs would still be subject to the city’s lot coverage

restrictions, no more than 60 percent coverage in the Single Family Residential zone. Detached ADUs would have a maximum height of 25 feet. The original recommendation called for a 20 foot height maximum, which was changed by the Planning Commission at a public hearing in April following testimony from HBA members who noted that a 20 foot height maximum would greatly limit design flexibility. Attached ADUs would have to meet the height restrictions for single family homes in the given zone (e.g. 35 feet for new single-family homes, and 28 feet or existing building height, whichever is greater, for existing homes in the Single Family Residential zone). The most controversial element to the ADU proposal centered around parking requirements. Neighborhood associations have voiced concerns about ADUs contributing to already limited on-street parking problems, and the original proposal called for requiring one additional off-street parking space for an ADU. The Planning Commission, at it’s public hearing, eliminated the parking requirement from the proposal after hearing testimony that the additional off-street parking space would by necessity reduce available on-street parking due to the curb cut and wider driveway. We expect that the parking issue will be particularly controversial at the City Council’s June public hearing, and this requirement may change depending on the direction the Council goes.

Proud supporters of the HBA and local builders in the Salem area.

Proudly carrying...

2744 Pence Loop SE Salem, OR 97302 503-581-8378

www.tktfloors.com 20 | The Chalkline | Summer 2017

www.HomeBuildersAssociation.org

Vital Statistics HBA News

Vital Statistics

Information Courtesy of Willamette Valley Multiple Listing Service New Residential Construction

Keizer

Central Salem

Suburban Eastâ&#x20AC;&#x201D;N

Suburban Eastâ&#x20AC;&#x201D;S

SE Salem

South Salem

West Salem

Marion County

Polk County

TOTAL

373

$339,616

$227,583

$232,666

$214,950

$373,601

$363,802

$308,493

$320,513

$288,986

$325,849

Average Square Footage

2,173

1,566

1,499

1,484

2,115

2,151

2,013

2,088

1,756

2,010

Average Cost per Square Foot

$156

$145

$155

$145

$177

$169

$153

$154

$165

$162

Average Days on the Market

212

166

105

165

166

168

145

170

171

Currently Active Listings

Units Sold 12 Months to Date Average Sales Price

Months of Inventory on Market

Unsold Units-12 Months to Date

600

NEW 400

3 2

200

1 0

Top Area Builders Rank

BUILDER

Permits*

Comfort Homes

Fowler Homes

Banner Homes

Pacific National Development

Don Lulay Homes

Chad E Davis Construction

7. (tie)

MC Northwest

Wind River Homes

Del Boca Vista

10.

Olsen Design & Development

Every Year Thousands Save Millions

Put Your NAHB Membership to Work Now.

*B uilding permits, last 12 months. Data for all areas of Marion and Polk Counties. March 1, 2016 - March 31st, 2017. Data compiled from building permits applied for through Salem, Marion County, Polk County, Dallas and Independence building departments.

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

Money-saving discounts that benefit you, your business, and your family

nahb.org/MA

Summer 2017 | The Chalkline | 21

HBA News

HBA Events Calendar DATE

EVENT

TIME

LOCATION

June 8th

Lead Paint Certified Renovator Refresher Training

8:30am - 12:30pm

HBA Conference Room

June 15th

Lead Paint Certified Renovator Training

8:30am - 5:00pm

HBA Conference Room

June 17th

HBA Builders' Bash - The Great Northwest

6:00pm - 8:00pm

HBA Showcase House

June 17th - 25th

HBA Tour of Homes

June 22nd

Fall Protection Training

8:30am - 9:30am

HBA Conference Room

June 26th

2017 HBA Golf Tournament

12:30pm Shotgun

Salem Golf Club

July 20th

Lead Paint Certified Renovator Training

8:30am - 5:00pm

HBA Conference Room

July 27th

Forklift Safety Training

8:30am - 9:30am

HBA Conference Room

August 10th

Lead Paint Certified Renovator Refresher Training

8:30am - 12:30pm

HBA Conference Room

August 17th

Lead Paint Certified Renovator Training

8:30am - 5:00pm

HBA Conference Room

August 24th

Ladder Safety Training

8:30am - 9:30am

HBA Conference Room

September 14th

Lead Paint Certified Renovator Training

8:30am - 9:30am

HBA Conference Room

8:30am - 9:30am

HBA Conference Room

September 21st

B:8.75”

Silica Safety Training

T:8.5” S:8”

We’re in the offering NAHB members up to $1,000 business.

2017 Chevrolet Express 2500 Cargo Van

NAHB MEMBERS BENEFIT FROM THESE SPECIAL OFFERS.

Members of the National Association of Home Builders (NAHB) can now enjoy a private offer1 of up to $1,000 toward the purchase or lease of most new Chevrolet, Buick and GMC vehicles. Choose an eligible vehicle at your local dealer and present your NAHB proof of membership. You can add on incentives from the National Fleet Purchase Program2 and Business Choice3 to get the best value on vehicles that run your business. For private offer details, visit nahb.org/gm.

1 Private offer amount varies by model. Up to $500 offer for retail deliveries and up to $1,000 offer for fleet deliveries. Valid toward the purchase or lease of eligible new 2016 and 2017 model year vehicles. Customer must take delivery by 1/2/18. Not compatible with other private offers. Not valid on prior purchases. Compatible with many current incentives. Incentives are subject to change without notice. Offer excludes Chevrolet Bolt, Camaro, Chevy SS, Corvette, Sonic, Spark, Trax, Volt, Buick Cascada, Lacrosse, Regal, Verano and all Cadillac vehicles. Additional GM models may be excluded from time to time at GM’s sole discretion. See dealer for details. 2Offer available to qualified fleet customers. Not compatible with some other offers. Take delivery by 12/31/17. See dealer for details. 3To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/non-business-related transportation purposes. Must provide proof of business. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties, and ordering, consult your dealer or visit gmbusinesschoice.com. Take delivery by 1/2/18. ©2017 General Motors, LLC. All rights reserved. The marks appearing in this ad are the trademarks or service marks of GM, its subsidiaries, affiliates, or licensors.

22 | The Chalkline | Summer 2017

10652766E__192934A02.indd 1

www.HomeBuildersAssociation.org 11/10/16 3:45 AM

B:5.25”

2017 GMC Sierra 1500

S:4.875”

2017 Chevrolet Silverado 2500HD

T:5.125”

2017 Chevrolet Low Cab Forward 3500HD

Oregonâ&#x20AC;&#x2122;s Oldest Family Owned Mercedes Dealer www.HomeBuildersAssociation.org

Summer 2017 | The Chalkline | 23

Set The Foundation - To Build Your Business Hereâ&#x20AC;&#x2122;s your chance to be "top of mind" with the decision makers and company managers who need your goods &/or services.

Benefits Of Advertising In Chalkline: Target SpeciďŹ c Messaging & Advertising to the 700+ HBA Members Longer Ad Life & Repeated Exposure Superior Creative Design & Graphics Excellent Pass-along Value (Chalkline Quarterly

Magazine)

Chalkline is now online and mobile accessible.

To reserve your advertising space contact Jerry Stevens 541-944-2820 jerry.s@mtangelpub.com

Mt. Angel Publishing, Inc.

401 Oak St. Silverton, Oregon www.mtangelpub.com