Chalkline Spring 2019

The

SPRING 2019

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

On the legislative horizon ...

Density changes for single family lots?

Why The President Is A Member ��������������������������������4 Legislature Considers Zoning Changes �������������������� 6 New Mobile Elevated Work Platform Standards ���8 Tour Of Homes Applications Open ���������������������������� 11

CONTENTS / MEMBERSHIP & BOARD

2019 Board of Directors

Contents

OFFICERS PRESIDENT

Mike Riddle, Mike Riddle Construction, LLC VICE PRESIDENT

Brett Tallan, M.J. Tallan Construction SECRETARY/TREASURER

Nolan Fridley, Nolan Fridley Construction ASSOCIATE VICE-PRESIDENT

Alan Sorem, Saalfeld Griggs, PC IMMEDIATE PAST PRESIDENT

Matt Holstege, MC Northwest FORMER PAST PRESIDENT

Chuck Foster, Chuck Foster Homes & Remodeling

BOARD MEMBERS Jeff Boles, Parr Lumber Brent DeHart, Northwestern Mutual Oleg Foksha, Foksha Homes Kyle Juran, Remodeling by Classic Homes, Inc. Leslie Kampstra, Cherry City Interiors & Design Wes McWhorter, Premier Remodeling & Design Keith Owen, Owen Construction Brent Pence,Pence Northwest Construction, LLC Jason Sawyers, Randy Fultz Custom Homes, LLC Amy Senske, Consolidated Supply/

The Fixture Gallery Rich Tovar, Wind River Homes Kelli Terjeson, Fidelity National Title

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, Safety Management Consultant 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. Designers: Steve Beckner & Elyse McGowan 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 Legislature Considers Zoning Changes. ��������� 6 Safety Update �������������������������������������������������� 8 Tour of Homes ��������������������������������������������������11 OHBA News From the State ��������������������������� 12 Vital Statistics �������������������������������������������������� 14

ALL TIME BIG SPIKE 1500+ John Gooley 2371

STATESMAN SPIKE 500+ Ric McNall 797

SUPER SPIKE 250–499 Mike Smith 447 Tim Mametieff 436 Rick Massey 422 John Mills 394 Mike Meaghers 368

Dan Dorn 357 Dean Kaufman 318 Jeffrey Green 316 Chuck Foster 283 Jubal Frost 254

ROYAL SPIKE 150–249 Steve Johnson 231 Don Druliner 200 Tom Wheeler 184 Rick Ziebell 161

Ken Hannegan 158 Randy Fultz 157 Mike Riddle 151

RED SPIKE 100–149 Kelvin Dettwyler 143

Rob Rardin 120

GREEN SPIKE 50–99 Jerry Page 98 John Hammer 94 Rich Kansky 82 Larry Bilyeu 75 Bob Cavell 69 Kent Kaufman 69 Kathy Temple 65 Eric Olsen 64

Matt Endler 60 Mike Smith 56 Matt Holstege 56 Brad Moore 53 Don Sturgeon 51 Kerry Kuenzi 50

LIFE SPIKE 25–49 Patrick Jackson 48 Serge Serdsev 48 Eric Jensen 47 Steve Herr 46 Chris Pfeifer 45 Randy Melton 44 Jim Hobbs 43 Ryan Bloedel 41 Eric Templeton 38

Tim Youngkin 34 Tim Kelsh 34 Rich Tovar 37 David Hafner 29 Rich Fry 26 Kimberly Hosmer 25 Rich Clausen 25 Laura Dorn 25

BLUE SPIKE 6–24 Mark Shipman 24 Kevin Stone 23 Kraig Kelly 22 Randy Reeves 21 Rod Ashford 21 Jason Robertson 20 Hunter Emerick 20 Robert Kleinke 20 Peter Strauhal 20 Michael Devlin 18 Caleb Remington 17 Don Lulay 12 Jason Sawyers 12 Brent Pence 11

Steve Hurley 11 Ricky Fast 10 Jim Sparkman 9 Brett Tallan 9 Mike Giles 9 Alan Wilding 9 Chad Montgomery 9 Tim Roth 8 Gary Epping 8 Nigel Guisinger 8 Chris Rasmussen 8 Bonique Hollinrake 6 Becky O’Brien 6 Leslie Savage 6

New & Reinstated Members Adair Homes Amanda Whiterock (503) 678-5524 AmeriTitle Chad Robb (541) 729-2645 Spike: Brad Moore Bean Construction Jacob Bean (503) 689-0698 Spike: Brent Pence Commerce Home Mortgage Nichole Kenny (503) 967-5197 Spike: Tracy Belle Excalibur Enterprises, LLC Arseny Kaya (503) 798-6414 Empire Construction Rupert Smith (971) 242-1136 ER Renovation, Inc. Ethan Rudometkin (503) 400-1540 Integrity Construction & Development, LLC Ivan Tipikin (503) 680-2519 Spike: Matt Holstege Radigan Remodeling Misti Millier (503) 991-5103 Spike: Mike Riddle Seaview Home Construction Mark Evensen (503) 689-8590

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.

Brad’s Overhead Doors Brad Zitzelberger (503) 399-3559 Carlos Painting & Drywall Jorge Carlos (503) 589-0883 Davis Painting Brock Davis (503) 779-4808

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.

Spring 2019 | The Chalkline | 3

PRESIDENT’S MESSAGE

Why am I a member?

Welcome to a new year full of sunshine President’s Message and roses…right?

by Mike Riddle Well, despite the many challenges we’ll face this year in the legislature, I’m excited to serve you all as President. With the large number of legislative bills and proposals we’re vetting, trust me when I tell you we have some of the best and brightest working hard to represent and protect the interests of our members.

Here are some of the most important bills that the HBA is working diligently on: HR 2001-Speaker Kotek’s “missing middle” housing bill would allow duplex/triplex/quad construction on single-family lots. This could open up redevelopment

4 | The Chalkline | Spring 2019

opportunities for our members, especially at a time when national or production builders are seemingly buying most of the valuable building lots.

HR 2306- This would require cities to issue building permits when a subdivision is substantially complete (80%) rather than the current quid pro quo where everything has to be completely finished. This allows our industry to start building quicker thus delivering product to our consumers faster.

HR 2636- This would implement a .3% tax on all Oregon sales. This could be a substantial tax increase for those in the construction industry, especially given that every layer of the construction process would be subject to the tax. This really helps make the homes we build more affordable-right..wink wink.

HR 2661- This would limit construction defect liability to 6 years instead of the current 10 years.

www.HomeBuildersAssociation.org

HJR 2- On residential sales of $1 million or more, homes would be taxed at their Real Market Value rather the current assessed value which is considerably less. This would be a substantial tax increase.

HJR 3- This would tax all commercial/industrial properties at Real Market Value instead of the current assessed value. This is a HUGE tax increase for owners of commercial property.

SB 88- This would allow ADUs in land zoned for rural residential use. This could be a great opportunity to provide more affordable housing for people in rural areas.

SAVE THE DATE! 2019 HBA Golf Tournament Monday, July 15 Salem Golf Club 12:30pm Shotgun Start

SB 211- This would limit pass-through income eligible for reduced personal income tax rates.

SB 608- This highly controversial rent-control bill that would ban no-cause evictions after the first year of tenancy; and would limit rent increases to no more than 7% plus inflation. If you’d like to see how rent control has worked historically, just Google it….you can read until the cows come home on how it doesn’t work.

These bills are just some of the estimated 3000 bills the OHBA has and will be vetting. We’ll win some and lose some, but please know we will be working hard to fight like honey badgers for this industry. Our efforts to represent and protect your interests is why you’re a member and why I’d implore you to reach out to others in our industry to join the team.

$109 / Member $159 / Non-Member Event includes: Golf, cart, tee prizes, lunch provided by NW Natural, on-course beverages, prizes & dinner

Thank you for making our Association great and I look forward to serving you.

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Spring 2019 | The Chalkline | 5

Legislature Considers Single-Family Zoning Changes.

By James Day

Oregon House Speaker Tina Kotek dropped a bombshell in December, announcing plans for Oregon cities with more than 10,000 people to allow duplexes, triplexes, and four-plexes in areas zoned for single family units.

The goal is to improve the housing supply at numerous price points, and Kotek’s proposal is likely to be one of the most-watched pieces of legislation in the current session.

If it passes it likely would have a huge impact on the home building and construction trades.

“This is a big issue for us and we are very engaged in the process and have been for a time,” said Jodi Hack, the former legislator who is now CEO of the Oregon Home Builders Association. “We will stay at the table in hopes of working together to address concerns.”

Hack is bringing specific concerns of the home builders to the debate and recognizes, from her legislative experience, that the discussion might be a lengthy one.

“We are in the process of working with (Kotek) on some needed amendments,” said Hack, while noting by way of clarification that “the bill does not do away with singlefamily zoning. It is specific to middle housing and would allow duplexes/triplexes/quads and cottage clusters on single-family lots.

“We are hoping to be able to amend the bill to address how those lots will be counted as it relates to the buildable lands inventory and issues relating to zone

6 | The Chalkline | Spring 2019

density. We have also asked that townhomes be added to the list of options to promote home ownership rather just increase the rental pool.”

Also, Hack and the home builders are waiting to see how the legislation develops before reaching a conclusion on it.

“We have not taken a position on the bill – it will be a wait and see,” she said. “It’s just too early to tell.”

Hack also emphasized the association is pushing for building for both the rental and home ownership markets.

“Allowing for more options to build on single family has the potential to positively impact both the rental and housing inventories,” Hack said.

Although Hack described the Kotek proposal as “a large piece of the overall housing package of bills the speaker intends to introduce” on housing, results will not be seen until well into the future because of the code changes that will be required and the pace at which the building industry usually moves.

Subdivisions, as we know, are not built overnight.

“I think it will take several years for us to really see the outcomes,” Hack said. “The hope is that we can work together to come up with amendments that work for both sides and be able to increase both the rental and housing supply.”

www.HomeBuildersAssociation.org

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Spring 2019 | The Chalkline | 7

HBA NEWS

ANSI A92 Mobile Elevated Work Platform (MEWP) standards published General Information Effective Date: The ANSI A92.20/.22/.24 Standards for the Design, Safe Use, and Training for MEWPs were published in December 2018 and will become effective in December 2019.

Terminology: Aerial Work Platforms (AWPs) will now be identified as Mobile Elevated Work Platforms (MEWPs).

safety Brad Nanke HBA Director of Safety and Training

Application: New safe use and training requirements apply to all new and existing MEWPs. Existing MEWPs do not require manufacturing updates to the new standard.

Classifications: Training classifications are based on the designated group and type. Group A is vertical over the chassis, Group B is boom that extend beyond the chassis.

These groups are then divided into three types: Type 1 can only be driven in the stowed position, Type 2 can be driven elevated but is controlled from the chassis, and Type 3 can be driven elevated by work platform controls.

Equipment Design Changes New equipment will have active platform load and wind force sensing and will not operate when overloaded. Some MEWPs will be designated as indoor use only.

New stability testing results in foam-filled tires only for most rough-terrain MEWPs. Chain entrances will be replaced with self-closing gates and toe boards.

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CCB #12078

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Safe Use Planning: Site specific plans are required by the users (employers) including MEWP selection, risk assessments, and access, preparation, and maintenance of the work site prior to using the MEWP. Risk assessment: Includes prior planning to assess risk,

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develop control measures, identify safe work practices, and develop a rescue plan for falls or equipment malfunction.

Qualified Person: The user shall designate a qualified person to monitor, supervise, and evaluate operators on a regular basis to ensure proficiency.

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Training Requirements: Operator training is required

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for each MEWP classification before the effective date in a manner that trainees can understand.

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Personnel directly supervising MEWP operators shall receive supervisor training, including selection, hazard recognition and risk management.

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Training must consider the use of new and existing MEWPS (mixed-fleets).

HBA members should start the planning process now to ensure that the new requirements will be implemented prior to the December 2019 effective date.

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Spring 2019 | The Chalkline | 9

HBA NEWS

Builders invited to discuss scheduling best practices at roundtable Builders are invited to take part in the HBA’s next Builder Roundtable over the lunch hour on Tuesday, March 19th where we’ll be discussing best practices in construction scheduling. Assembled builders will be collaboratively sharing their tips and techniques in how they most efficiently schedule their jobs and manage communications,

responsibilities and timelines with their trade contractors, customers and their

own employees. The goal of these roundtables is simply to allow builders to learn from one another.

Participation is $15 per builder, which includes individually selected lunch from Little Lois Cafe. Pre-registration is required, as space is limited and expected to sell out quickly. Register online at www.homebuildersassociation.org, or call us at 503-399-1500.

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HBA NEWS

Registration now open for 2019 Tour of Homes Plans are already underway for the 2019 Tour of Homes, sponsored by NW Natural and taking place June 15th – 23rd, and builders are now eligible to submit their entries for the HBA’s flagship event.

Application packets are available for download at www.homebuildersassociation.org, or by calling the HBA to have one emailed to you. Applications must be submitted no later than April 12th, though entry fees are lower the earlier you submit your entry(s).

As an event eagerly looked forward to throughout Salem and the surrounding region, the Tour of Homes offers home builders the opportunity to display their craftsmanship and value to thousands of Tour visitors. There’s a reason that so many builders return year after year – the Tour of Homes

awareness of your home building business within the community.

Submit Tour Entries By April, 12

The Tour of Homes entry deadline is fast approaching.

Submit paperwork prior to the April 12 deadline.

For more info: Jeni Huntington at 503-399-1500 or jhuntington@ homebuildersassociation.org

helps you sell both spec inventory, generates custom build jobs for participating builders, and builds brand

The Tour of Homes is promoted with tens of thousands of advertising dollars to more than 250,000 consumers throughout the mid-valley region. Our marketing reaches a huge percentage of area residents through a wide variety of media purchases. As the viewing habits of consumers are changing, so are we.

We continue to ensure a solid presence on traditional media (newspapers, billboards, etc), yet are devoting even more resources to online and social media channels.

For information on the Tour of Homes, contact Jeni Huntington at 503-399-1500 or jhuntington@ homebuildersassociation.org.

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503.810.9661 Spring 2019 | The Chalkline | 11

OHBA NEWS

News from the Oregon HBA Here we welcome the new year as we move forward to the 2019 Legislative Session. At this time, over 1,400 bills have been proposed and we don’t expect it to stop there. We are viewing each and every bill that comes to the table, prioritizing legislation that is most important to the building industry.

Areas of legislation that we continue to watch on your behalf: • Wetlands Urban Interface Code Change/Fire Mitigation • Third Party Inspectors – the validation of permits, Attorney General’s report • Rural ADU’s • Workforce & Education – Associate degrees for trade apprenticeship programs • Business & Labor – including tax and revenue packages, cost containment, paid family leave, overtime, wage accountability • Energy & Environment – including Carbon Reduction, Wetland Mitigation Rulemaking, Energy Efficiency Standards, Cleaner Air Oregon, diesel emission standard rule changes, and DEQ fees, water, air and land permits.

• Housing bill package – including missing middle housing/infill, Goal 10 accountability and local barriers • Bills we pre-session filed: Construction Defect modifications, 80% completion to permits, assessment fee caps

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12 | The Chalkline | Spring 2019

STATE ASSOCIATION UPDATE Jodi Hack, CEO

I would like to extend a warm welcome to Ellen Miller, Lobbyist and Jameson Gideon, Intern as they join our government affairs and lobby team, including OHBA consultant Scott Barrie and myself.

Ellen has lobbied at the Oregon legislature and provided state affair services over the past seven legislative sessions. Prior to joining OHBA, Ellen served as the Legislative Coordinator/Urban Policy Analyst at the Department of Land Conservation and Development (DLCD) where she worked on statewide and local land use issues. Her experience with and knowledge of the legislature, the administrative rule making process, and our state’s land use system makes her an excellent addition to the OHBA team.

Jameson comes to the Oregon Home Builders Association having worked as Chief of Staff to several State Representatives and brings with him experience in policy advocacy, consensus building, and resolving bureaucratic and legislative obstacles. Currently at Willamette University College of Law, he joins the OHBA team eager to achieve successful results for OHBA members.

It is sure to be a busy year, and the OHBA welcomes the opportunities to advance our advocacy efforts as your voice for the home building industry. You can track our legislative progress and initiatives by being involved in the OHBA, so don’t miss the opportunity to influence your industry through involvement.

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Spring 2019 | 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

10

2

12

2

63

49

53

132

97

420

Units Sold 12 Months to Date Average Sales Price

$434,414

$283,200

$298,196

$302,000

$478,297

$391,949

$367,271

$384,893

$321,422

$380,367

Average Square Footage

2,591

1,460

1,812

1,672

2,409

2,167

2,211

2,052

1,712

2,062

Average Cost per Square Foot

$171

$195

$167

$185

$200

$182

$168

$189

$191

$187

Average Days on the Market

209

132

197

88

151

172

121

174

131

155

Currently Active Listings

4

1

8

2

32

15

16

82

55

215

600

Top Area Builders

Sold Units-12 Months to Date

RANK

BUILDER

1.

DR Horton Inc

152

2.

Comfort Homes

50

3. (tie)

Banner Homes

44

Stafford Homes & Land

44

Forrest Ridge Homes, Inc.

42

Tassy L. Davis Builders

42

7.

Chad E Davis Construction

41

3.0

8.

Fowler Homes

36

2.0

9.

West Coast Home Solutions

32

1.0

10.

Scott Martin Construction

28

400 200 0

7

c1

De

ar M

18

n Ju

18

pt

Se

18

8

c1

De

5. (tie)

Months of Inventory on Market 5.0 4.0

0.0 c

De

17

ar M

18

n Ju

18

pt

Se

18

8

c1

De

PERMITS*

Data for all areas of Marion and Polk Counties. Jan. 1, 2017 - Dec. 31, 2018.

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

HBA Events Calendar DATE

EVENT

TIME

LOCATION

March 12th

HBA Member Dinner

5:00pm - 7:30pm

Salem Convention Center

March 14th

Lead Paint Certified Renovator Training

8:30am - 5:00pm

HBA Conference Room

March 19th

Builder Roundtable

12:00pm – 1:30pm

Conference Room

April 9th

HBA Member Dinner - Trade Show Night

5:00pm - 7:30pm

Salem Convention Center

April 11th

Lead Paint Certified Renovator Training

8:30am - 5:00pm

HBA Conference Room

May 14th

HBA Member Dinner

5:00pm - 7:30pm

Salem Convention Center

June 15th – 23rd

HBA Tour of Homes

July 15th

HBA Golf Tournament Salem Golf Club

14 | The Chalkline | Spring 2019

www.HomeBuildersAssociation.org

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