FOUNDATIONS NEWSLTR SEPTEMBER by Rochester Area Builders, Inc.

ROCHESTER AREA BUILDERS, INC. 2022SEPT NETWORKING NIGHT Valor Mechanical & Tulip Tree Studios 9 SPORTING CLAY SHOOT Sponsor Informaiton 11 STUDS, STRUTS & STILETTOS New event date! 12 B UILDERS C OUNCIL C O MMERCIAL a division of Rochester Area Builders, Inc. division of the Rochester Area Builders, Inc. DEVELOPMENTDCOUNCIL C Remodelers One Weekend Only! SEPTEMBER 17-18 11:00AM TO 5:00PM FREE ADMISSION

2 | SEPTEMBER 2022 PRESIDENT Becky Holmen, Haley Lighting VICE PRESIDENT Jason Scrimshaw, Kimley-Horn & Associates, Inc. SECRETARY Jennifer Mitchell, Edina Realty TREASURER Jessica Markley, Elias Construction, LLC PAST PRESIDENT Luke Stier, Stier Construction, Inc. BOARD DIRECTORSOF MISSION STATEMENT The Rochester Area Builders, Inc, chartered in 1953, is a professional organization of commercial & residential builders, remodelers, developers and associated businesses dedicated to advancing the building industry in Southeast Minnesota. We are the trusted voice of the industry, providing leadership, education, networking, and information resources to our members, community and government officials. DIRECTORS Adam Giannini, Knutson Construction Adam Kramer, Kramer Contracting Jarett Jones, Merchants Bank Aaron Thompson, The Design Connection Austin Ryan, Ryan Windows & Siding Charlie Sweeney, Kraus-Anderson Construction Melissa Barbour, TLS Companies, LLC Vanessa Hines, Widseth Julie Herrera-Lemler, Rochester Area Economic Development, Inc. (RAEDI) BUILDERS EXCHANGE COUNCIL CHAIR Katie Reinhart, Kraus-Anderson Construction COMMERCIAL BUILDERS COUNCIL CHAIR Robbie Danko, The Boldt Company DEVELOPMENT COUNCIL CHAIR Hal Henderson, HGA Architects & Engineers REMODELERS COUNCIL CHAIR Krista Weisz, Stier Construction, Inc. 40 BELOW CHAIR Adam Giannini, Knutson Construction NATIONAL LIFE DIRECTORS Steve Buss, Cornerstone Builders & Real Estate, Inc. (Rep) NATIONAL DIRECTORS Dana Hlebichuk, Widseth Levi Kaiser, Benike Construction Todd Severson, TLS Companies, LLC STATE DIRECTORS Mike Allen, Mike Allen Homes, LLC Jean DeWitz, DeWitz Home Builders, Inc. Kathy Einck, Maplewood Homes.LLC (Rep) John McGuine, JM Consulting Dan Severson, Dan Severson Builders, Inc., Kenneth Bush, Bush Companies EXECUTIVE DIRECTOR John Eischen, John@RochesterAreaBuilders.com Shelly Bahlmann, Shelly@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update, Member Plus App & RAB Events App Rebekah Fierst, Rebekah@RochesterAreaBuilders.com Ambassadors, Awards, Builders, Bags & Brews, Commercial Builders Council, Community Relations, Education, Membership, Fashion Show, Program, Remodelers Council, Executive & Remodelers Tour, 40 Below Elizabeth Sullivan-Burton, Elizabeth@RochesterAreaBuilders.com Builders Exchange Trustees and Showcase Committee, Website GOVERNMENT & PUBLIC AFFAIRS CONSULTANT Rick Dold, Rick@GodwinDold.com STAFF

3 | FOUNDATIONS NEWSLTR COMPREHENSIVE SURFACE WATER MANAGEMENT PLAN ................................. 14 Public Works 2023 HOME SHOW INFORMATION ............. 15 Open Booth Registration KITCHENS FOR KIDS ................................. 16 2023 Home Show Activity Registration NAHB EYE ON HOUSING ............................ 18 Single-Family Built-for-Rent Construction Surging RENTAL SPACE AVAILABLE ....................... 19 Information NAHB EYE ON HOUSING ............................ 22 Builder Confidence Falls for Eighth Consecutive Month NAHB EYE ON HOUSING ............................ 29 Housing Affordability Falls to Lowest Since Great Recession BUILDING PERMITS .................................. 30 Rochester & Pine Island SEMR HISTORICAL OVERVIEW .................. 30 July 2022 OLMSTED BUILDING PERMITS .................. 31 July 2022 STU D S , ST R UT S & S T E T TO S BROADWAY Networking Night 12 1611 RAB CALENDAR .......................................... 4 SEPTEMBER 2022 2022 CALENDAR ......................................... 5 RAB Events MEMBER REPORT ....................................... 6 Welcome New Members LETTER FROM RAB PRESIDENT ................... 7 Becky Holmen, Haley Lighting, 2022 RAB President BUILDERS, BAGS & BREWS ......................... 8 Thank You! NETWORKING NIGHT. ................................. 9 Valor Mechanical & Tulip Tree Studios MEMBER APPRECIATION NIGHT. ............... 10 Thank You! 2022 SPORTING CLAY SHOOT ................... 11 Request for Sponsors STUDS, STRUTS & STILETTOS ................... 12 Date Change! FALL SHOWCASE ...................................... 13 Event information REMODELERS TOUR .................................. 13 Event information 13 9

4 | SEPTEMBER 2022 MEETINGS ARE NOW BEING HELD IN PERSON UNLESS NOTIFIED DIFFERENTLY BY JOHN September 2022 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 11:30 CommitteeProgramAM 2 3 4 5 12:00 CommitteeAffairsGovernmentPM 6 8:30 TrusteesBoardExchangeBuilders3:30CommitteeExecutive11:30CouncilRemodelersAMExec.AMPMof 7 7:30 AM 40 CommitteeShowcase12:00CBC7:30DevelopmentProfessionalBelowAMExec.PM 8 9 10 11 12 13 3:00 BoardPMMeeting 14 7:30 CommitteeGreenAMBuilding 15 16 17 18 19 11:30 CommitteeFashionAMShow 20 21’ 12:00 Committee404:30CommitteeAmbassadorsPMPMBelowExec 22 11:30 CommitteeRelationsCommunityAM 23 24 25 26 11:30 CommitteeHomeAMShow 27 5:00 MeetingMembershipGeneralPM 28 3:00 CommitteeAdvisoryServicesDevelopmentPM 29 4:00 PM CBC Social 30 Remodelers Remodelers

Rochester Area Builders 2022 Calendar of Events AUGUST30 Networking Night @ Valor Mechanical & Tulip Tree SEPTEMBER5 Office Closed – Labor Day 15 Sporting Clay Shoot 17 Sporting Clay Youth Shoot 17-18 Remodelers Tour 17-18, 24-25 Fall Showcase of Homes 27 General Membership Meeting @ DoubleTree OCTOBER25 Networking Night @ Warners’ Stellian NOVEMBERTBD Past Presidents Dinner 24-25 Office Closed – Thanksgiving Holiday DECEMBER2 Holiday Party @ The Hilton 23-26 Office Closed – Christmas Holiday FUTURE InternationalDATESBuilders Show January 31 – February 2, 2023 @ Las Vegas, NV RAB Home Show February 3-5, 2023 @ Mayo Civic Center Studs, Struts & Stilettos April 20, 2023 @ Mayo Civic Center

6 | SEPTEMBER 2022 ONE TO FOUR YEARS Supporting Strategies .........................2021 FIVE TO NINE YEARS Tulip Tree Studios.................................2017 City of Kasson 2017 Madery Construction, LLC ...................2016 GP Development, Inc. ...........................2015 J&M Consulting 2015 Pine Island EDA ....................................2015 Centurion Ridge, LLC ...........................2014 WHKS & Company 2013 15 YEARS TO 19 YEARS Hunt Electric Corporation 2006 Larry Newman Drywall ........................2005 20 YEARS TO 24 YEARS Somerby Golf Community ...................2002 DeGeus Tile & Granite 2001 25 YEARS OR MORE ONB Bank ...............................................1996 Top Shop of Rochester, Inc. .................1995 Brinkman Builders, LLC 1995 PC Applications Consultants, Inc. ......1995 Beacon Roofing Supply ........................1993 Hirshfield’s Decorating Center 1993 Haley Lighting .......................................1993 Premier Bank ........................................1991 Dan Severson Builders, Inc. 1991 Brock White Company..........................1991 Bremer Bank .........................................1991 Christian Brothers Cabinets 1990 Gerhards - The Kitchen & Bath Store 1988 Express Employment Professionals ..1985 Smith Schafer & Associates, Ltd. 1982 Ohly Law Office......................................1982 Quality Overhead Door Company, Inc. .. Kuehn1981 Motor Company, Inc. ................1981 Wilson Tibor & Maves, Ltd. .................1981 As of July 31, 2022 ROCHESTER AREA BUILDERS, INC. JULYREPORTMEMBERSHIP2022MembershipTotal: 399 Retention rate: 92.3% FREE JOB P O S T I N G S FORMS FOUND HERE SEND ELIZABETH A COMPLETED FORM NEWAUGUSTWELCOME2022MEMBERS DAVID BENDIX arvigmedia.com(888)Advertising828-7934 AARON SCANLON Residential Builder (507) legacyhomesofrochester.com281-9800

BECKY HOLMEN President Rochester Area Builders, Inc more sponsors to make this year’s shoot more successful than last year’s. The date is September 15th @ 1pm in Pine Island. If you have any questions about registration or sponsorship, please contact Shelly Our next Networking Night is Tuesday, August 30th at Valor Mechanical & Tulip Tree Studios, in Stewartville. There will be food and drinks available. This is a wonderful opportunity to meet new people that have similar interests and share the same goals of growing our Builder Organization in SE MN. Invite a guest or someone from your company that has not been before, remember you get out what you put in. I have been involved with this organization for long enough to have met some amazing people and grown my business exponentially. Besides the people, what RAB and BAM do behind the scenes for our builders and associate members, never gets enough credit. For example, it was brought to our attention that a requirement was being enforced on builders that is above MN State code. We have brought this to the attention of the right people to see what can be done to help lower the cost of construction. Hope to see you at Valor Mechanical & Tulip Tree.

7 | FOUNDATIONS NEWSLTR

FROM THE PRESIDENT

Hello Members, The temperature is getting cooler, and it is MN State Fair time for the Holmen Family. We are prepped and ready for the trip up to St. Paul. It is also time to get the boys ready for school. I will be taking Ryan back to Illinois for his sophomore year at Black Hawk College, and Carter is ready for his Junior year at Lanesboro High School. Life on the farm is always busy, but I love where I live, and I love where I work. Life in general is pretty amazing. I am celebrating a milestone birthday this year. It is hard to believe, but time doesn’t wait for anyone and definitely does not stand still. Last month we had our Member Appreciation Night at Mayowood Stone Barn, and we presented Bruce Meadows with his Honorary Member Clock for his years of

membership. There were also several of the past Honorary Members present that evening. I hope you had a chance to visit with them. Thank you to the food and beer sponsors, that helped make that evening possible. It was a great turn out at LTS Brewery for the Builders, Bags & Brews fundraiser for the Jeremiah Program. Check in time was a little drizzly, but as the day progressed the sun started to peek out. There was woodfire pizza, lots of beer, music from 97.5 early in the day, a live band in the afternoon and a wonderful group of people to make this a fabulous way to spend a Saturday. I was on a team that was a lot of fun, but unfortunately, we went out fast with a big goose egg for wins. Thank you to everyone that participated and the sponsors, without you this event would not have been possible. Fall is nearly upon us and that means Fall Showcase of Homes and Remodelers Tour for RAB Members. I am excited to see this year’s entries. The registrations are all in and it will be a great Showcase and Tour. Mark your calendars for September 17-18 and 24-25, 2022. There will be an interactive map, photos, and a lot more information on the RAB Events App, on the App Store or Google Play. The Sporting Clay Shoot sold out after only two days. This event has consistently grown over the years. Even though the Shoot is full, we are still looking for a few Becky Holmem Haley Lighting 2022 RAB President

Congratulations to our Heads/Tails winner, Allen Sanford, who will be enjoying a trip to St. Louis with a 2 Night Stay at Hyatt Regency, a $300 gift card, and a Tour of the Anheuser-Busch Brewery.

8 | SEPTEMBER 2022 Thank You!

And congratulations to Grant Heller and Nate Larson, the 2022 Builders, Bags & Brews Champs! Yes, the rumors are true!

It was a fun day of friendly competition all in support of Jeremiah Program. With music from MN 97.5 and Root River Jam Band, pizza from Twisted Barrel Pizza, and of course our favorite beverages from LTS Brewing Co. how could you not have a good time?! The new venue (LTS) worked out great and we’re excited to partner with them again next year! Thank you to our Headlining Sponsor, Home Federal, for helping make this event happen once again this year!

Thank you to everyone who participated in our second annual Builders, Bags & Brews!

Grant Heller is my son-in-law and Nate Larson is my not yet son-in-law. They bought my beer the rest of the night - John

Cheers to 10 Years See you on the 30th! It’s time to party with us at Networking Night! 2012 - 2022 then now RSVP not required, but registrations on MemberZone appreciated! You, Our RochesterFellowArea Builders Members Monthly Networking Night Tuesday, August 30, 4:30 – 6:30 p.m. 1001 2nd Ave. NW in StewartvilleWHERE:WHEN:WHAT:WHO:

10 | SEPTEMBER 2022 Thank you to everyone who attended Member Appreciation Night at Mayowood Stone Barn last month! We enjoyed catching up with honorary members from years past and introducing our newest honorary member, Bruce Meadows! Also, thank you to our beverage sponsor, Altra Federal Credit Union, for keeping us hydrated throughout the evening.

11 | FOUNDATIONS NEWSLTR

Deadline SPONSORSHIP2.24.23FORMDeadline1.26.23DESIGNENTRY BROADWAY COMING 4.20.23 MAYO CIVIC CENTER CHANGE DATEthe Strutting back to April

PRESENTED BY EVENT SPONSOR Showcase of Remodelers O ne WEEKEND BIG11:00AMSEPTEMBERONLY!1718TO5:00PMFREEADMISSIONWEEKENDSSEPTEMBER17-18&24-2511:00AMTO5:00PM

Stephanie Hatzenbihler, shatzenbihler@rochestermn.gov

14 | SEPTEMBER 2022

Sadie Neuman, sneuman@rochestermn.gov

The plan is expected to include: drivers and co-benefits, focus areas, issues, goals, metrics, and actions. With the aim of creating a comprehensive plan, the development was separated into three streams of work: project scoping with data collection and gap analysis, phase 1 - discovery, and phase 2 – solution exploration and design. The CSWMP is now entering phase 2 of the plan development process with a goal of having a published plan by December 2023. Community engagement is a high priority as part of Rochester’s CSWMP. A project website will be launched this September and will be updated with opportunities to participate in planning sessions and provide input throughout phase 2. You’re invited to share your experiences, advice, and recommendations with the planning team. Members of Rochester Area Builders should contact Troy Erickson, Stephanie Hatzenbihler, and Sadie Neuman with questions and to learn about upcoming ways to get involved.

Troy Erickson, terickson@rochestermn.gov

CSWMP Planning Team

This plan is building on existing City and regional plans including: 1999 City Surface Water Management Plan, Zumbro River Watershed Total Maximum Daily Load (TMDL), Zumbro River Watershed Restoration and Protection Strategies Report, Zumbro River Watershed Groundwater Restoration and Protection Strategies Report, Rochester Sustainability and Resiliency Community Work Plan, Greater Zumbro County Water Management Plan: 2022-2031, Rochester Comprehensive Master Plan 2040, Downtown Rochester Master Plan, Destination Medical Center (DMC) District Design Standards, Rochester UDC updates, and the Greater Zumbro River One Watershed One Plan.

Comprehensive Surface Water Management Plan is being developed for the City of Rochester

In August 2020, The City of Rochester began development of a Comprehensive Surface Water Management Plan (CSWMP). A Comprehensive Surface Water Management Plan (CSWMP) is a document that: • describes the city’s rivers, lakes, ponds, wetlands, and stormwater management •systemdefines goals and policies to care for our water resources and meet the needs of •residentsidentifies and explains actions and projects the city may take to meet the goals and policies

15 | FOUNDATIONS NEWSLTR RochesterAreaBuilders.com/Home-show • Kitchens For Kids Rafﬂe • Resource Way Scavenger Hunt ALL FRIDAYWEEKEND • Date Night • 2 for 1 Admission • Cooking w/Shari Mukherjee • Wine and Beer Tasting SATURDAY • Career Fair • Builder Skills Competition (ages 15-19) SUNDAY - FAMILY FUN DAY • Children’s Cupcake Workshop W/Shari Mukherjee • Build with Builders BOOTH REGISTRATIONSALEINFORMATION Shelly@RochesterAreaBuilders.comCONTACT: Booth Sales Opens For Previous Year Exhibitors JULY 29, 2022 Booth Sales Opens For Everyone AUGUST 8, 2022 BOOTH SALES SHOWFEBRUARYACTIVITIES10-11-12, 2023 NEW HOURS FRIDAY 3:00PM - 8:00PM SATURDAY 10:00AM - 5:00PM SUNDAY 10:00AM - 3:00PM

ROCHESTER AREA BUILDERS HOME SHOW 2023 We

A raffle will be held during the event. The people’s choice winner will be determined by the largest number of raffle tickets for each project. These great mini-kitchens will be for children’s use but the raffle profits will go toward Jeremiah Program in Rochester MN. Jeremiah’s proven, holistic approach begins with establishing a supportive community for single mothers to pursue a career-track, college education. Through a combination of quality early childhood education, a safe and affordable place to live, and empowerment and life skills training, families find stability and a path out of Youpoverty.can also be a part of the Home Show and connect with customers by securing a 10’x10’ booth for the entire weekend (Friday, Saturday, and Sunday). Display, educate, and/or promote your business! Cost starts at $730. Open Registration begins in late summer, early fall. Find the registration form at rochesterareabuilders.com/Kitchens-for-Kids-Registration Questions about the project? Contact Shelly@RochesterAreaBuilders.com Ph 507-282-7698 want your talent to be a part of supporting single moms and their children.Benefit

PresentedForbyFebruary3-4-5,2023MayoCivicCenter

The 2023 RAB Home Show will be featuring “Kitchens for Kids” – play kitchens for young children made by members of our community. Proceeds benefit Jeremiah Program. We invite you to be a part of this exciting activity!

17 | FOUNDATIONS NEWSLTR

Single-Family Built-for-Rent Construction Surging BY ROBERT DIETZ on AUGUST 16, 2022

18 | SEPTEMBER 2022

Single-family built-for-rent sector construction surged during the second quarter of 2022 as homebuying affordability declined on higher mortgage interest rates.

According to NAHB’s analysis of data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, there were approximately 21,000 single-family built-for-rent (SFBFR) starts during the second quarter of 2022. This is a 91% gain over the second quarter 2021 total. Over the last four quarters, 69,000 such homes began construction, which is a 60% increase compared to the 43,000 estimated SFBFR starts in the prior four

Importantly, as measured for this analysis, the estimates noted above only include homes built and held by the builder for rental purposes. The estimates exclude homes that are sold to another party for rental purposes, which NAHB estimates may represent another five percent of singlefamily starts based on industry surveys. Indeed, the Census data notes an elevated share of singlefamily homes built as condos (non-fee simple), with this share averaging 4% over recent quarters.

Thequarters.SFBFRmarket is a means to add inventory amid challenges over housing affordability and downpayment requirements in the for-sale market, particularly during a period when a growing number of people want more space and a single-family structure. Single-family built-forrent construction differs in terms of structural characteristics compared to other newly-built single-family homes, particularly with respect to homeGivensize.the relatively small size of this market segment, the quarter-to-quarter movements typically are not statistically significant. The current four-quarter moving average of market share (6%) is nonetheless higher than the historical average of 2.7% (1992-2012) and sets a data series high as this submarket expands.

Some, but not all, of these homes will be used for rental purposes. Additionally, it is theoretically possible some single-family built-for-rent units are being counted in multifamily starts, as a form of “horizontal multifamily,” given these units are often built on single plat of land. However, spot checks by NAHB with permitting offices indicate no evidence of this data issue occurring at scale thus far.With the onset of the Great Recession and declines in the homeownership rate, the share of built-for-rent homes increased in the years after the recession. While the market share of SFBFR homes is small, it has clearly been trending higher. As more households seek lower density neighborhoods and single-family residences, a growing number will do so from the perspective of renting. This will be particularly true as mortgage interest rates remain elevated and increase. Thus, the SFBFR market will expand in the quarters ahead.

19 | FOUNDATIONS NEWSLTR OFFICE SPACE FOR RENT ipsumLorem Looking for modern, convenient office space? The RAB office has 800 square feet available for rent. The agreement includes shared use of the conference room, bathrooms, breakroom, and 4 parking spaces. Lease is $18/square foot gross. To arrange a tour or get more information, contact John at the orJohn@RochesterAreaBuilders.comoffice.507-282-7698.

20 | SEPTEMBER 2022 Commercial & Residential Construction Loans Contact Us bankonONB.com Building or Remodeling? Talk to a lender today!Rochester 507-280-0621 Stewartville 507-504-1060

Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three HMI components posted declines in August and each fell to their lowest level since May 2020. Current sales conditions dropped seven points to 57, sales expectations in the next six months declined two points to 47 and traffic of prospective buyers fell five points to 32.

Builder Confidence Falls for Eighth Consecutive Month BY ROBERT DIETZ on AUGUST 15, 2022

Looking at the three-month moving averages for regional HMI scores, the Northeast fell nine points to 56, the Midwest dropped three points to 49, the South fell seven points to 63 and the West posted an 11-point decline to 51.

22 | SEPTEMBER 2022

The August buyer traffic number in the builder survey was 32, the lowest level since April 2014 with the exception of the spring of 2020 when the pandemic first hit. Tighter monetary policy from the Federal Reserve and persistently elevated construction costs has brought on a housing recession. The total volume of single-family starts will post a decline in 2022, the first such decrease since 2011. However, as signs grow that the rate of inflation is near peaking, long-term interest rates have stabilized, which will provide some stability for the demand-side of the market in the coming months.

Builder confidence fell for the eighth straight month in August as elevated interest rates, ongoing supply chain problems and high home prices continue to exacerbate housing affordability challenges. In another sign that a declining housing market has failed to bottom out, builder confidence in the market for newly built single-family homes fell six points in August to 49, marking the first time since May 2020 that the index fell below the key break-even measure of 50, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

The HMI tables can be found at nahb.org/hmi

Roughly one-in-five (19%) home builders in the HMI survey reported reducing prices in the past month to increase sales or limit cancellations. The median price reduction was 5% for those reporting using such incentives. Meanwhile, 69% of builders reported higher interest rates as the reason behind falling housing demand, the top impact cited in the survey.

QualifiedReachCustomersAdvertiseontheRABWebsite! More than 3,000 people visit the RAB website each month, many of them looking for a contractor. Advertise on our site and reach them when they’re primed to buy! Banner ads are available in a variety of locations on the RAB site, from job posts to the contractor directory. Higher tiers come with priority placement in directory search results too. Contact us today to learn how you can start advertising, starting at $299. Contact Elizabeth@RochesterAreaBuilders.comElizabethor507-282-7698

GET UP TO $5,400 TO GET THE JOB DONE USING THE PRIVATE OFFERS1 FOR NAHB MEMBERS IS EASY: 1. Get your NAHB proof of membership. 2. Visit your local Chevrolet, Buick or GMC dealer and mention this Private Offer. 3. Select an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership. For even more value, combine this offer with the National Fleet Purchase Program and Business Choice Offers. For full details on the Private Offer, NAHB members should visit nahb.org/gm Example offer for NAHB members who are business owners purchasing a 2021 Chevrolet Silverado 2500 HD Crew Cab 1LT 4WD. 1Private offer amount varies by model; up to $500 offer for retail delivery and up to $1,000 offer for fleet deliveries. Valid toward the purchase or lease of eligible new 2020, 2021 and 2022 model year vehicles. Customer must take delivery by 1/3/2022. Not compatible with some other offers. Not valid on prior purchases. Excludes all Cadillac vehicles; 2020 Buick Cascada, LaCrosse, Regal and Verano; Chevrolet Colorado 2SA, Sonic, Trax, Volt and GMC Canyon 2SA; 2020-2021 Encore 1SV; Chevrolet Blazer, Camaro, Corvette, Equinox 1SM, Malibu 1VL, Traverse 1L0; GMC Acadia 1SV and Terrain 2SA. Additional GM models may be excluded at GM’s sole discretion. See dealer for details. 2Offer available to qualified fleet customers through 1/3/2022. Not compatible with some other offers. Take delivery 1/3/2022. 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 ownership. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties and ordering, consult your dealer or visit gmbusinesschoice.com. 4Eligible purchases must be equal to or greater than the amount of the cash allowance. Accessory Cash Allowance requires purchase of the eligible accessories from your dealer. ©2021 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. Up Privateto Offer 1 $1,000 Eligible Accessory Cash Allowance3, 4 Up to $1,000+ National Fleet Purchase Program (FVX)2 $3,400 In Potential Value $5,400 Up to + = Shown with equipment from independent suppliers which is not covered by the GM New Vehicle Limited Warranty. GM is not responsible for the safety or quality of independent supplier alterations.

26 | SEPTEMBER 2022 FOUNDATIONSNEWSLETTERADVERTISING AdvertisingNewsletter Rates Per Issue 12 Issues New Member 12 Issues Full color Horizontal1/2 c $70.00 c $650.00 c $490.00 Full color Full Page c $90.00 c $900.00 c $675.00 Full Color Full Page Press Release c $25.00 Newsletter Display Ad Dimensions 1/2 Horizontal 8-1/2 x 5-1/2 Full 8-1/2 x 11 RETURN ROCHESTERTO: AREA BUILDERS Shelly 507-282-7698Rochester,108Shelly@RochesterAreaBuilders.comBahlmannEltonHillsLnNWMN55901 Send artwork to Shelly@RochesterAreaBuilders.com by the 15th of the month to be included in the upcoming Foundation Newsletter. Rochester Area Builders Newsletter is an unbeatable opportunity to advertise to members and individuals associated with RAB. It is a source of valuable association and industry information, and is published and emailed monthly. Foundations is sent to over 1600 connected industry professionals. Ad sizes are listed under Display Ad Dimensions, and prices are located above. Ads may be changed from month to month. Our prices are for full color ads. We will gladly work with you to design your ad. Please send digital files for all ad copy, logos, and artwork. We use PC format. We accept Illustrator and Photoshop files. Convert all fonts to outlines. We also accept the following high resolution file types: .tif, .eps and .pdf (with all graphics and fonts embedded). If you have any other formats please contact us.

@NAWICSEMNFollow us Visit nawicsemn.org or email info@nawicsemn.org for more information. Scan for Tickets & Sponsorships. 5:30 - 9:00 pm IndustryJoinAppreciationUs! Wednesday, September 14 Kahler Grand Hotel - Heritage Room | 20 2nd Ave SW, Rochester, MN 2nd Annual $50ticket Cash bar • Social/Networking • Hear from a panel of Industry Leaders • Member of the Year Award • Industry Partner of the Year Award • Installation of NAWIC 2022-2023 Officers SponsorshipsAvailable Gold — $1000 Silver — $750 Bronze — $250 Spirit — $100 Coordinated by your Southeast MN Chapter 346

Rising mortgage rates, high inflation, low existing inventory and elevated home prices contributed to housing affordability falling to its lowest point since the Great Recession in the second quarter of 2022. According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI), just 42.8% of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income of $90,000. This is a sharp drop from the 56.9% of homes sold in the first quarter that were affordable to median-income earners.

1. 1. Lansing-East Lansing, Mich. 2. 2. Indianapolis-Carmel-Anderson, Ind. 3. 3. Toledo, Ohio 4. 4. Harrisburg- Carlisle, Pa. 5. 5. Scranton-Wilkes-Barre, Pa.

The HOI shows that the national median home price jumped to an all-time high of $390,000 in the second quarter of 2022, surpassing the previous record-high of $365,000 set a quarter earlier. Meanwhile, average mortgage rates soared from 3.86% to 5.33% during this period.

29 | FOUNDATIONS NEWSLTR

The top five most affordable major housing markets in the second quarter of 2022 were:

The top five least affordable major housing markets—all located in California were: 1. Los Angeles-Long Beach-Glendale 2. 2. Anaheim-Santa Ana-Irvine 3. 3. San Diego-Chula Vista-Carlsbad 4. 4. San Francisco-San Mateo-Redwood City 5. 5. San Jose-Sunnyvale-Santa Clara

Meanwhile, Elmira, N.Y., was rated the nation’s most affordable small market, with 91.8% of homes sold in the second quarter being affordable to families earning the median income of $77,900. The top five least affordable small housing markets were also in the Golden State. At the very bottom of the affordability chart was Salinas, Calif., where 5.3% of all new and existing homes sold in the second quarter were affordable to families earning the area’s median income of $90,100. Visit nahb.org/hoi for tables, historic data and details.

Housing Affordability Falls to Lowest Level Since Great Recession BY ROSE QUINT on AUGUST 11, 2022

30 | SEPTEMBER 2022 NEW RESIDENTIAL Single Family Dwelling 14 4,751,573 21 7,045,254 Townhome Dwelling 0 0 4 1,268,180 Two-Family Houses 0 0 0 0 Manufactured Home 0 0 0 0 Multi-Family Bldgs (Units) 201 26,555,090 0 0 EXISTING RESIDENTIAL Deck Addition 22 266,420 26 371,095 Room Addition 2 125,000 3 249,000 Porch Additions 2 56,000 2 83,000 Other Additions 2 27,000 4 127,440 Basement Finish 16 442,385 10 134,738 Alterations 102 1,147,950 55 1,247,855 Multi-Family Addition 1 18,250 0 0 Multi-Family Alterations 4 197,000 6 133,924 NEW COMMERCIAL Assembly (Church) 0 0 0 0 Assembly (General) 1 1,559,735 0 0 Assembly (Restaurant/Bar) 0 0 1 475,583 Business 2 4,696,000 0 0 Education 0 0 0 0 Factory/Industrial 0 0 0 0 Institution 1 1,750,000 0 0 Mercantile 0 0 0 0 Miscellaneous 0 0 0 0 Residential (Apartment) 0 0 0 0 Residential (Care/Assisted Living) 0 0 0 0 Residential (Care/Hotel/Motel) 0 0 1 516,450 Storage (General) 2 551,000 2 818,225 Storage (Parking Garage) 0 0 0 0 Storage (Warehouse) 1 2,065,156 0 0 Utility (General) 0 0 4 85,000 Utility (Private Garage) 2 332,238 0 0 EXISTING COMMERCIAL Addition 3 1,522,025 1 22,000 Alterations 24 6,832,580 25 14,649,370 Structural Shell 0 0 0 0 “White Box” 0 0 0 0 Interior Demolition Only 0 0 0 0 Other Phased Permits 0 0 0 0 OTHER CONSTRUCTION Business Signs 5 28,611 13 112,005 Advertising Signs 0 0 1 70,000 Footings & Foundations 1 1,597,593 1 1,265,000 Demolition 2 0 4 0 YEAR TO DATE STATISTICS BUILDING PERMITS ISSUED TO DATE 1266 379,364,342 1367 290,452,548 Single Family Dwelling 107 42,077,390 146 50,285,923 Multi-Family Buildings Total Units: 477 13 59,730,205 1 14,800,000 TRADE ISSUEDPERMITSTODATE 5932 99,207,315 6186 74,293,764 Electrical 2369 47,006,390 2382 34,088,110 Electrical (Temp. Service) 133 83,300 139 50,005 Mechanical (HVAC) 1625 22,394,674 1732 20,735,747 Mechanical (Gas Piping) 293 461,965 365 490,252 Mechanical (Fireplace) 159 809,916 191 972,722 Mechanical (Hydronic) 139 12,616,457 99 5,395,865 Plumbing 1214 15,834,613 1278 12,561,063 TOTAL PERMITS YTD 7198 478,571,657 7553 364,746,312 Information and downloads available at Rochester Building Safety Department’s website: Rochester Permits ROCHESTER BUILDING PERMITS 2022 VALUATION 2021 VALUATION January 11 20 25 15 19 6 17 23 9 February 14 19 15 20 16 5 13 8 11 March 28 30 31 44 25 27 32 35 21 April 25 22 33 45 40 23 19 19 28 May 35 19 56 43 28 27 19 6 13 June 47 51 41 52 38 31 21 30 21 July 38 29 44 45 36 26 26 25 14 TOTAL 198 190 245 264 202 144 147 146 117 August 60 33 47 30 31 24 17 24 September 23 27 52 35 39 12 30 20 October 35 49 25 36 29 27 28 16 November 26 23 12 41 21 47 23 19 December 27 42 37 33 25 34 21 8 TOTAL 369 369 418 429 347 289 266 233 117 2014 2015 2016 2017 2018 2019 2020 2021 2022 JULY 2022 2022 NO. VALUATION 2021 NO. VALUATION Activity Overview Key Metrics Historical Sparkbars 7-20217-2022 Percent Change YTD 2021YTD 2022 Percent Change Key metrics by report month and for year-to-date (YTD) starting from the first of the year. New Listings 769 622 - 19.1% 4,243 - 2.1% Pending Sales 599 512 - 14.5%3,964 3,684 - 7.1% 4,335 - 4.3% Days on Market 21 23 + 9.5%34 32 - 5.9% Closed Sales 628 528 - 15.9%3,586 3,431 + 10.8% Avg. Sales Price $290,195 $296,713 + 2.2%$273,918 $307,620 + 12.3% Median Sales Price $260,000 $260,000 0.0%$243,700 $270,000 - 0.5% Affordability Index 164 133 - 18.9%175 128 - 26.9% Pct. of Orig. Price Received 102.3% 100.0% - 2.2%100.6% 100.1% Current as of August 5, 2022. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2022 ShowingTime. 2 Months Supply 1.4 1.6 + 14.3%-Homes for Sale 768 839 + 9.2%-7-2019 7-2020 7-2021 7-2022 7-2019 7-2020 7-2021 7-2022 7-2019 7-2020 7-2021 7-2022 7-2019 7-2020 7-2021 7-2022 7-2019 7-2020 7-2021 7-2022 7-2019 7-2020 7-2021 7-2022

31 | FOUNDATIONS NEWSLTR PINE ISLAND BUILDING PERMITS JULY 2022 NEW RESIDENTIAL NUMBER VALUATION Single Family Detached 1 347,000 Single Family Attached 0 0 Existing Residential Basement Finish 0 0 Deck Addition 0 0 NEW RESIDENTIAL Single Family-Detached 26 11,002,927 29 10,087,860 Single Family-Attached 0 0 8 1,180,761 Garage 10 857,721 9 486,013 RESIDENTIAL Deck 22 137,444 23 153,674 Addition 5 272,029 9 492,850 Alterations 101 1,953,464 95 1,329,661 Garage Addition 0 0 3 66,118 NEW COMMERCIAL/INDUSTRIAL Recreational 0 0 0 0 Church/Religious 0 0 0 0 Industrial/Warehouse 0 0 1 2,162,198 Service/Repair Station 1 1,101,813 0 0 Store/Restaurant 1 78,552 1 336,786 Nonresidential Building 1 616,530 2 504,159 MISCELLANEOUS PERMITS Mechanical 74 353,395 133 1,004,003 Plumbing 33 91,578 70 735,013 TOTAL PERMITS 294 17,422,545 413 19,118,783 OLMSTED COUNTY PERMITS YTD COMMERCIAL/INDUSTRIAL Addition 0 0 1 121,056 Alterations 10 406,509 5 151,000 Re-roofing 3 286,563 1 3,900 OTHER STRUCTURES Pool, Retaining Wall, etc. 7 264,020 14 303,733 Manufactured Homes 0 0 9 0 2022 VALUATION 2021 VALUATION 2022 VALUATION 2021 VALUATION TOWNSHIPS/CITY City of Byron 30 1,882,813 57 3,312,807 Eyota Township 1 27,840 8 400,914 Marion Township 23 598,948 9 51,872 Oronoco Township 6 979,519 14 371,198 City of Stewartville 19 224,763 25 729,786 Quincy Township 2 999,404 0 0 OLMSTED COUNTY PERMITS - JULY 2022 VALUATION 2021 VALUATION 39 Residential building plans submitted 2022: 838 *Avg: 798 Commercial inspections completed 28 Commercial building plans submitted CD Report 2022: 243 *Average: 218 2022: 1,632 *Avg: 1,697 Residential inspections completed YTD Commercial permits issued 2022: 1130 *Average: 1074 YTD Building permit plans reviewed 2022: 59 *Average: 71 YTD Zoning Certificates submitted 2022: 35 *Average: 43 YTD Type I Applications submitted 2022: 2 *Average: 3 YTD Type II Applications submitted 2022: 44 *Average: 41 YTD Type III Applications submitted 2022: 139 *Avg: 192 YTD NEW Housing Units 2.5 Weeks Residential plan review time 5 Weeks Commercial plan review time *Average based on 2020, 2021, 2022 2022: 887 *Average: 855 2022: 5,932 *Average: 5,885 2022 $109,674,512 *Average $78,929,094 2022 $122,578,952 *Average $79,419,908 2022 $121,217,429 *Average $108,700,236 2022 $99,207,315 *Average $78,282,315 YTD Residential permits issued YTD Trade permits issued YTD Residential valuations YTD Commercial valuations YTD Alterations valuations YTD Trade valuations BUILDING DIVISION PLANNING DIVISION July 2022 JULYREPORTNOTAVAILABLE

32 | SEPTEMBER 2022 Company Name, Address and Phone Number Links to Website, Address, and Phone 5 MediumCategoriesPlacement in Search Results Link to Profile Page 12 CompanyCategoriesDescription (200 Characters) Keywords (240 Characters) Hours of Operation Driving Directions Higher Placement in Search Results Company Description (1600 Characters) Keywords (Unlimited Characters) 200 Characters on Search Results Bulleted List with Hyperlinks Logo on Profile Page Can Be Added Search Results Summary (200 Characters) Profile Page Header Can Be Added Gold Map Pin Logo On Search Results Can Be Added Social Networks Can Be Added Photo Gallery Can Be Added YouTube Video Can Be Added STANDARDLISTING UPGRADEDLISTING ENHANCEDLISTING PREMIUMLISTINGWEBSITE ENHANCEMENTSPROFILE NO ADDITIONALCHARGE ANNUALLY$100 ANNUALLY$300 ANNUALLY$500Contact Elizabeth for more information

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