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Inside BIA-Hawaii: Taking Aim at a ‘Bottleneck

TAKING AIM AT A ‘BOTTLENECK’

In 2021, the trade association to focus on the Islands’ permitting process and support builders through COVID-19

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BY DAVID PUTNAM PHOTOS BY ANJJ LEE

Before he’s even officially settled into the president’s role at the Building Industry Association of Hawaii, Beau Nobmann already has formed goals and plans for 2021.

Among his primary targets are improving a slow permitting process, helping builders maintain their “essential” standing during COVID-19 and training the next generation of workers.

“We have a major bottleneck in our building process with the Department of Planning and Permitting,” says Nobmann, sales manager at HPM Building Supply, “and the BIA has been attempting to address the issue for years.

“The City and County of Honolulu remains one of the slowest counties nationwide to process a building permit,” adds Nobmann, who succeeds Dwight Mitsunaga as BIA-Hawaii president. “This process will continue to be one of BIA’s focuses for 2021 as we owe it to the Industry to speak up about the delays, increases in costs and other inconsistencies in requirements.”

CEO Jess Leorna, who took the reins of BIA-Hawaii in April, agrees.

“As this has been an election year, the conversation about DPP and a painstaking, arduous permitting process continuously raises its ugly head,” she says. “We know that permitting in Hawaii takes an exponential amount of time over permitting in other states. Jess Leorna We know that this has been a topic of conversation for years and years, yet change can’t seem to be made.

“In 2021, we are not going to let the newly elected officials forget about this important topic,” Leorna adds. “The processes at DPP need to be addressed, and fast. We need to keep the momentum of the conversations we’re having now. DPP’s permitting process is the gateway for sustainable economic development. DPP’s staff needs to have the tools and training to work efficiently and effectively. Time spent on improving the process and the resources will inevitably improve DPP’s productivity and is a necessary investment.”

Leorna concedes that “change will not happen overnight, and the path will remain challenging for some time. Come next election year, I, for one, do not want to hear that nothing has been

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done about this, and BIA will be here as a resource for the city, and for staffers, to help move the process along. I’m optimistic we can make some progress if we keep the momentum we saw with our candidate interviews this election season.”

Nobmann says the BIA will continue efforts in keeping Hawaii’s construction sector busy during COVID-19. “The construction industry has been extremely blessed to be deemed essential during the pandemic, and as an industry and an organization we will continue to be grateful and respectful of that ability to continue to work,” he says.

“The BIA reached out quickly in 2020 to all construction companies and construction-related associations to spearhead a response and a proactive action plan—our industry would (thereby) adopt and stand behind on jobsites and in workplaces all related CDC guidelines for COVID-19 safety.

“We did it together, not only as the BIA but as an Industry as a whole. We have been able to continue to work and have shouldered much of the support of our Hawaiian economy during this time. We aim to do our best to set the standards for keeping our workers, our families and ultimately our communities safe during these uncertain times.”

Leorna says the collaboration of Hawaii’s contractors and associations on a sample jobsite safety policy and an industry pledge that made their commitment to safety clear in the face of the coronavirus helped earn and keep the industry's “essential” status.

“This act showed our power in numbers,” she says, “and that the industry could be relied upon to stay safe and open and keep the economy going while other industries would inevitably be shut down; it was because of these actions that the construction industry was deemed essential and our members (and nonmembers) could stay in business.

“BIA has also submitted more than 125 testimonies this year, many in opposition of proposed bills and code amendments that increase the cost to build, and therefore the cost to buy. The industry is already facing financial pressures including labor shortages, permitting delays, increase in

lumber rates and supply chain disruption. We hoped that elected officials and administrators would consider the added burden that COVID inflicts on the industry, while recognizing that Hawaii’s economy is relying heavily on the construction industry—commercial, residential, military and infrastructure—to keep some semblance of balance. However, the current city administration has pushed bills through that increase the cost to build.

“The codes committee and energy office continue to propose expensive energy upgrades and mandates. BIA will continue to keep tabs on this activity ... we certainly would like to see a reduction in this momentum and more support and understanding for the people, businesses and jobs that are carrying us through the pandemic.”

Leorna says BIA also will work to address amendments and bills that were put into effect during the last days of the current City and County of Honolulu administration. She cites, for example, Bill 25, which “increases the cost to build significantly due to its immediate requirement for new construction to be solar-ready and include 25 percent of parking stalls to offer electric vehicle charging stations. State and county policy-makers should understand that the industry simply cannot afford significant hits to the bottom line, especially at a time when the economy so heavily relies on construction.”

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Association of Home Builders (NAHB), BIA-Hawaii is also monitoring the adoption of various codes at the national level. “Many of these codes are being adopted to address climates in different regions of the country, and should not be required in the tropical climate that we live in,” Leorna says.

“Also, many proposed codes do not address public health and safety, but rather are being pushed by special interest groups. Many of these new codes will directly impact Hawaii by increasing the cost of housing and reducing housing affordability.”

Looking ahead, both Nobmann and Leorna are optimistic that the construction industry will “continue on an upward trend.”

Leorna points to builder confidence being at “an all-time high nationwide. We expect to see heightened infrastructure spending in 2021, and heightened new home sales combined with the low level of inventory indicates growth opportunities for the industry.

“Though we are hopeful that additional waves of COVID-19 infection will be manageable by our government and medical system, the industry faces further supply chain disruption and significant increase to the cost to build related to 2020 policy. Housing is a critical piece of the puzzle to recovery after the pandemic, and everyone in the industry needs to contribute to the conversation so that our elected officials understand the impact of every bill, every code amendment and every new mandate that crosses their table.”

Nobmann adds that he expects interest rates “to stay low in 2021 as the national economy will attempt to rebuild and stabilize after the havoc of COVID-19 … heading into 2021 there is an ability to be cautiously optimistic about a vaccine as well as a greater awareness to public safety measures that can be taken to prevent massive outbreaks. Both of those things should provide greater stability in a depressed economy.

“This will allow for residential builders to continue to push forward and grow, as well as create greater predict-

ability in the economy, which leads to more borrowing and spending. Some larger commercial and public projects as well as residential projects have been stalled due to the overall uncertainty that the pandemic has created worldwide. I feel that 2021 will be a great year of growth.”

Nobmann also aims to push the importance of training and the use of technology. “The construction industry has historically been behind the curve when it comes to technology and adaptation to change. However, out of necessity we have all found excellent and productive ways to communicate and interact. At this time, we have a great opportunity in front of us to continue the momentum of virtual meetings, trainings, online educational courses, etc.

“We aim to do our best to set the standards for keeping our workers, our families and ultimately our communities safe during these uncertain times.” —Beau Nobmann

“We feel that it is important to continue to provide these additional options to our working professionals and those who continually juggle the balance between work and family life.

“Our role for 2021 is to continue to bolster our platform and offerings of meaningful content both virtually and in-person as permitted. We hope to reach more of our members and those interested in joining the construction industry through a better, more focused effort toward technology.”

Leorna also wants to work to address Hawaii’s “shortage in labor in spite of the high unemployment rates. BIA is here to train displaced workers, help professionals in the industry skill-

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up and work with employers to place workers in jobs.

“BIA will focus on expanding our education offerings by 40 percent, including workforce entry and professional development courses as well as some specialty courses such as historic building preservation. Collaboration is a key word for our association activities, and industry folks, elected officials and state agencies can expect to see BIA at the table with the goal of building relationships in the new year.”

Affordable housing is another area of concern for Nobmann. “The BIA is constantly working with contractors and builders to address the affordable housing problem in Hawaii,” he says. “But we are approaching a point where the conversation begins to fall on deaf ears, meaning contractors are being pushed to build more affordable houses, yet when they do they are stalled and added costs are heaped upon their project.

“We desperately need to work together as a county and as an Industry to preserve the integrity of our buildings, neighborhoods and cities, but also need to understand that time is money.”

Mitsunaga Finds ‘Silver Lining’ in 2020

Outgoing BIA president lauds efforts of association members, staff and other Island organizations for working together during the pandemic

BY DAVID PUTNAM

“Adapting to and surviving the devastating impacts of this year’s COVID-19 is probably one of BIA-Hawaii’s most prominent achievements,” says Dwight Mitsunaga, 2020 president of BIA-Hawaii.

When Mitsunaga, who also is head of DM Pacific Inc. and DM Architects Inc., ascended to the top office of the building association, COVID-19 had yet to become a household word.

“In looking for a silver lining,” he says, “the one thing that really stands out is the ability and great efforts of our staff, board of directors, chairs, committees, members and everyone to all step up, work together and continue providing services to benefit our communities, the building industries and our general membership. “As with many non-profits, the pandemic has devastated our organization’s finances due to restrictions impacting our revenue-producing activities and events, many of which were cancelled or drastically constrained.”

His take on serving as BIA president during 2020’s hectic days? “Actually, I feel honored to have been entrusted to serve as BIA-Hawaii’s president,” Mitsunaga says. “Since 1955, there were so many other presidents who worked so hard to achieve so much for the building industry. BIA-Hawaii has come so far from those early days and probably even beyond what was initially envisioned.

“It’s been really great interacting with everyone at BIA-Hawaii, its boards, its committees, its members and affiliates. It has been a real eye-opener learning how everything runs. And it’s really all the wonderful and hardworking people that keep BIA-Hawaii going.”

Going forward, he advises builders “to keep everything moving in a positive direction. At the pandemic’s onset, our Government Relations Committee collaborated with numerous trade organizations, unions and affiliates to establish the COVID-19 Construction Dwight Mitsunaga Jobsite Rules. This was extremely effective in Hawaii maintaining the building and affiliated industries as essential businesses.

“Our Awards and Events Committee had to really dig deep to continue providing for our members and the public. Our annual building shows, awards events, public interest forums, election panels, fundraisers, etc., were either lost or had to be offered virtually. Our Education Committee’s wonderful training curriculum had to be presented online.

“The BIA has now collaborated with the National Association of Home Builders, and has been offered their national resources and virtual platforms to educate Hawaii’s new or displaced workers through its Construction Training Center (CTC). BIA’s Membership Committee continues to reach out to our members, looking for ways to assist them and provide added value to their memberships.”

President to President

With his term as 2020 president of BIA-Hawaii heading into its final days, Mitsunaga offers some words of advice for 2021 President Beau Nobmann.

“I think that maintaining great relationships and interacting with everyone is key,” Mitsunaga says. “Our new CEO, Jess Leorna, coming all the way from Alaska, brings a lot of experience, knowledge and new ideas to help in our transition out of COVID-19. BIA’s great staff—Operations Director Mary Ah-Wong, Education Director Barbara Nishikawa, Awards and Events Director Vanessa Vinson and Membership Director Khatrina Meeuwsen—and all the committees and committee chairs do such a wonderful job.

“It’s been a great experience and a great challenge. Wishing you good luck in 2021.”

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