H B OME UILDERS A SSOCIATION NEWSBRIEF The Official Newsletter of the Home Builders Association of Greater Southwest IL The Voice of the Homebuilding and Remodeling Industries in Southwest Illinois. Representing Bond, Calhoun, Clinton, Greene, Jersey, Madison, Monroe, Randolph and St. Clair Counties April 2016 issue www.hbaswi l .org 2016 NATIONAL LEGISLATIVE CONFERENCE HBA Leadership met with Congressman Shimkus & Bost to keep the Home Building industry issues on the top of their priorities. We work hard, take risks and get the job done. We are engaged in our communities, giving back day after day, year after year. We create jobs and build the homes that are the foundation of American family life. Housing drives our nation’s economy. Our industry contributes to Gross Domestic Product (GDP) through private residential investment and spending on housing services, representing roughly 17% of GDP in a typical year. Roughly 3.5 million people – including those who are self-employed – worked in residential construction and remodeling last year. Left to right: Norm Etling; The Village of Shiloh, Congressman John Shimkus, Jeff Schmidt; RLP Development, Tracy Butler; HBA Executive Officer; Mark Fulford; Fulford Construction, Congressman Mike Bost, Kevin Wrigley; LW Contractors, Chuck Daily; Providence Bank, Joe Lanahan; Joe Lanahan Construction Services, Inc., Mark Vogt; Vogt Vogt Builders, Inc., David Padgett; Padgett Building & Remodeling Co., Inc. Reduce burdensome regulations. Most home building and remodeling companies are small businesses. We are saddled with a disproportionate share of costs associated with excessive – and often unnecessary – regulations. regulations at all levels of government account for 25% of the cost of a new single-family home. Lead Paint rule “opt-out” language was further discussed with a strong request to put this disclosure into the rule. Adopt sensible workforce development and immigration policy. Properly conceived, immigration reform will help our industry fill open jobs, boosting our nation’s economy. We asked for their support of HR1147, the Legal Workforce Act, which implements E-Verify nationwide. Address soaring health costs. Enable small businesses to help employees with healthcare costs through the use of Health Reimbursement Arrangements. We asked for their support to Co-sponsor the Small Business Healthcare Relieft Act (HS2911/S1697) which will allow small businesses to continue to offer standalone HRAs to their employees for the payment of healthcare insurance premiums or qualified medical expenses. Without a healthy housing market, the economy can’t flourish. The issues that are important to home builders, remodelers and others in our industry are the same issues that are key to a thriving economy. We’re asking the nation’s lawmakers to: Promote energy efficiency. We need the freedom and flexibility to build energy-efficient homes in the most costeffective way we can. Personal experiences with the Illinois Energy Efficiency Law in place were shared to give real life experiences on these requirements that have been more costly than efficient. Protect middle class tax breaks. The mortgage interest deduction is a key to the financial well-being of the middle class. We also need tax credits to encourage production of housing for less fortunate families. We asked for support of housing’s role in the economy. Eliminating or scaling back these vital housing incentives will also shrink the local tax bade of many communities, causing already cash-strapped state and local government to further cut jobs and essential services. Enact housing finance reform. The nation needs a federal backstop that provides for a reliable and adequate flow of affordable housing credit in all economic and financial conditions.
Enforcement Begins in 2017 for Construction Industry OSHA issued the final silica rule to limit exposure to crystalline silica, which was published in the Federal Register. After a brief initial review, it appears that the final rule contains some of the same problematic provisions that NAHB identified in comments submitted to OSHA during the rulemaking process. What work is covered by the rule? Crystalline silica is found in many common building materials. Popular remodeling jobs like kitchens and baths that involve cutting tile, bricks and other materials containing crystalline silica over the new limit will likely be impacted by this new regulation. Why is this important to Builders & Remodelers? You will be required to use specified engineering controls like water or ventilation and provide respiratory protection for common tasks like trimming tile and cutting bricks under the updated exposure limits of the new silica rule. What are Builders/Remodelers responsibilities in the meantime? The rule goes in to effect on June 23, 2016 but OSHA will not enforce the rule in the construction industry until June 23, 2017. At that time, industry professionals are required to establish work practices that limit worker exposure, have a written exposure control plan and find a competent person to implement it. Employers should prepare to provide workers who must wear a respirator for 30 or more days per year with medical exams and to keep records of workers' silica exposure and medical exams. Where can Members learn more about the required training and equipment? NAHB continues to review the 1,772 page pre-publication copy of the rule. Members can access more information on the potential impact on nahb.org. When and how did NAHB get involved? NAHB raised numerous concerns during the multi-year rulemaking process. Though the agency has made major changes to the construction rule, NAHB remains concerned that the final rule is not technologically and economically feasible for remodelers. This is the value of your membership. NAHB makes your voice heard with regulatory and legislative decision-makers—and ensures that you are informed of the latest actions that could impact you and your business. 2
Friday, May 6th 2016 8:00 am Registration NILO FARMS 15025 IL-111, Brighton, IL (618) 466-0613 “One of our Nations finest hunting & shooting facilities” $105 each registration “loaded” with: 100 Rounds of Sporting Clays, Ammo, Drinks, Lunch and Friendly Competition (Protective eye wear required) ___ $105 per Sport Clay Shooter ___ $250 Snack/Soda Station (limited to 3 ONLY) ___ $200 T-shirt Sponsor ___ $150 Score Sheet Sponsor ___ $100 Station Sponsor ___ 1 Raffle Ticket for $20 ___ 3 Raffle Tickets for $50 Bang for your Buck Opportunities Snack/Soda Cart Sponsor………....…….$250 Signage & opportunity to meet with all shooters T-shirt Sponsor…………………………….$200 Logo on the back of shirts for all shooters Score Sheet Sponsor…………….......…..$150 Logo on all score sheets Station Sponsor…………….….…….. …..$100 Company Name on signage at a station Gun Raffle ($1,000+ value)….…….. Sponsored by 1 ticket for $20 or 3 for $50 ~ limited # of tickets sold or $750 cash for the non-shooting enthusiast Winner does not need to be present to win ALL SPONSORS welcome to “man their stations” and will receive 1 comp lunch at the event. Contact the HBA to make arrangements Registration: complete the following information and return it to the HBA office (please print) TOTAL DUE $ _______ Method of Payment: ___Member Invoice ___Check ___Visa/MasterCard* *credit card payments will include an additional 4% convenience fee Credit Card# _________________________________________________ Expiration: ______ Signature: _________________________________ Company Name: ________________________________________________________________________________ Contact Name: _________________________________________T-shirt Size______ _________________________________________T-shirt Size______ _________________________________________T-shirt Size______ HBA Policy: Registration for the Sport Clay Shoot is considered confirmation of your participation and will be invoiced if cancellation is not made within 3 days of the event. _________________________________________T-shirt Size______ _________________________________________T-shirt Size______ _________________________________________T-shirt Size______ Home Builders Association of Greater Southwest Illinois 6100 West Main St., Maryville, IL 62062 3 Office: (618) 343-6331 - Fax: (618)343-6335 www.hbaswil.org ~ Email: email@example.com …..$20-$50 _______________________________ Phone#/Email: ___________________________________ Names of attendee(s)
There will be no recession in 2016! Despite all the news to the contrary, the US economy is in pretty good shape, better than the financial pundits think. Sure, the stock market has taken a battering of late, exploration and production activity in the oil patch has been declining, and exports are performing poorly, but the rest of the economy is fine. The service sector continues to grow nicely and construction activity continues to increase. Let’s take a closer look at the facts. The recent tumble in equity prices has nothing to do with a slowing economy and is not the precursor of a recession. Rather, the declines are the result of three quite independent factors. First, as the Fed raises interest rates, the value of financial assets must decline. Remember, the Fed initially lowered rates to boost asset prices and stimulate spending. As this process slowly unwinds, the value of equities must decline. Second, corporate profits have been flat for several quarters, and third, even at today’s somewhat lower equity values, P/E ratios remain high by historic standards. As for exports, the US is much less dependent on them than most nations. Exports of goods to China total less than one percent of GDP, while exports of goods to Europe are about 1.5% of GDP. While exports of services such as movies, music and intellectual property add to these totals, they do not vary much with economic conditions. As a result, while a 10% decline in exports certainly hurts manufacturers and their employees and reduces GDP by about 0.2%, it is far from catastrophic in an economy growing by a healthy 2.5%. Regarding falling oil and gas prices, the benefits to the economy are just beginning. Until now, the price declines have resulted in large cutbacks in exploration and production (E&P) activity, as well as related 4 manufacturing, construction and oil services activity that supports oil and gas E&P. The key here is that cheaper energy prices have boosted household incomes by about $130 billion or $1,000/household. While to date most of this money has been socked away, I expect that to change and to see increased consumer spending this year and next as households perceive the recent price declines as somewhat permanent. Most importantly, the rest of the economy is already doing well. Unemployment is at 4.9% and will decline further as the year progresses, and at 4.9%, unemployment is already at one of the lowest levels in decades. Moreover, home sales and prices are up, as is loan demand. In addition, tight labor markets are finally leading to sizable increases in hourly earnings, which will boost household spending further, and inflation, which has been completely dormant for several years, appears to be rising. This is a particularly welcome development given that Japan and Europe continue to fight deflation. Lastly, services, which account for roughly 84% of GDP, and construction activity, which accounts for about 6% of GDP, both of which are almost entirely domestically focused, are in fine shape and growing nicely. During the past 12 months, construction activity increased by 10.4% and services grew by 3%. In short, the parts of the economy that are inwardlycentered are doing well, and the negative impacts of softer growth from abroad are not nearly strong enough to derail our economy. As for the upcoming election, let’s fervently hope that the threats to dramatically raise taxes or increase the deficit do not come to pass. Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.
2016 Lobby Day Tuesday, May 3rd ~ 10am to 7pm 10:00 am Sangamo Club, 227 E Adams, Springfield, IL Guest Speaker, Lunch, Issues Updates 1:00 pm to 5:00 pm Legislative Visits at the Capitol Building & Stratton Building With Senators Clayborne, Haine, Luechtefelt, Manar, McCann & McCarter and Representatives Beiser, Bourne, Bryant, Cavaletto, Costello Jr., Davidsmeyer, Hoffman, Jackson, Kay & Meier, 5:30pm to 7:00 pm Legislative Reception - Sangamo Club, Springfield, IL Where the Senators and Representatives from our territory will stop by to follow up with previous conversations in a relaxed setting with beverages and appetizers. REGISTER TODAY for Lobby Day - HBA Local #1468 Name: _________________________________________________________________________________ Company name: _________________________________________________________________________ Email address/Phone# _____________________________________________________________________ Simply email to firstname.lastname@example.org with the following information and copy email@example.com for car pool arrangements *One week before Lobby Day, you will be sent an information packet by email to prepare you for the day’s events.
Private Lunch with Mayor Allen Adomite of Troy Mayor Adomite joined the PWB Council and fellow members for lunch at the Butterfly Patio and shared information about himself and the City of Troy. In the past 15 years, Allen has served in several different capacities in local, state and federal government, as well as work in advocacy-related non-profits. Allen was an Alderman for eight years and had three years as Mayor Pro-Term before being elected as Mayor of Troy, IL, in April 2013. Troy has had many infrastructure improvements around town include reopening of South Main Street which was a $2 million project and used less than 1% of city funding. It has taken 9 years to complete 10 grants totaling $43,615. New construction in 2015 included $9.5 million in new residential construction (41 permits) and $8.2 million in commercial construction. A new senior community “Serenade” featuring homes made of insulated concrete forms will be located alongside Tri Township Park. Up to 60, two-family houses, divided by a common wall, will be built. Each half, estimated at 1,600-1,800 square feet, will be priced at $250,000. Everything is designed to be low maintenance and energy efficient. Left to right: Jeff Schmidt - 2016 HBA President, Cherity Freeze w/ Wells Fargo, IL State Rep. Charlie Meier, Brittney Ragsdale w/ C.A. Jones, Mayor Allen Adomite, Tracy Butler w/ HBA, Linette Warnecke w/ TheBank of Edwardsville, Jeff Soland w/ City of Troy, Beth Jacob w/ Jacob Sunrooms, Exteriors & Bath and Mindy Shafer w/ Wells Fargo 6
Friday, April 22, 2016 10:00 - 11:30am House located at: 400 E. Church Street, Collinsville, IL 62234 Come visit the Collinsville Area Vocational Center (CAVC) home in progress and meet the Junior and Senior students who are building it! 1,200 square foot, 3 bedroom, 2 bathroom About CAVC: CAVC is a two year, public vocational training center for Junior and Senior high school students. Students are drawn from nine area high schools and attend 2 1/2 hour classes taught by instructors who have many hours of actual work experience in their fields. Each program area is designed to emphasize proper work habits, employable skills, and career opportunities, as well as give students a work environment related to their chosen fields. 7 Recruit the next generation: The economy is on an upward spiral and the building industry is having a hard time finding enough skilled workers to fill key positions. As demand continues to rise the industry will face an increase of worker shortage. A career in construction is a successful and profitable profession that doesn't require a 4 year college degree. This is the perfect opportunity for our builder/remodeler members to discuss a career in construction to the next generation who already have interest in the industry and has hands on experience!
Trash Heap Can Trash Your Bottom Line! In a recent decision, an Illinois Appellate Court upheld a ruling from the Illinois Pollution Control Board that imposed a $7,500 fine on an Illinois contractor cited for ( I ) causing or allowing “open dumping” of waste that resulted in litter; ( ii ) causing or allowing “open dumping” of waste that resulted in deposition of construction or demolition debris; and ( iii) causing or allowing accumulation of water in used or waste tires. The “open dumping” was a pile of debris (boards, PVC pipe pieces, silt fence, etc.) removed from work sites and “dumped” outdoors, on the ground, at the contractor’s property, by returning work crews. The contractor indicated that its employees piled the materials there, until there was enough accumulated to make it worthwhile to drive it to the landfill. This practice garnered the contractor citations for both causing or allowing litter and deposition of construction debris. The tires with accumulated water were 2 tires that had been removed from the contractor’s equipment; laid on their sides; and accumulated rain water. The contractor indicated that the tires had been retained to be used for other purposes, such as filling them with concrete to create a base for work-site light poles. The Illinois Environmental Protection Agency field workers did not believe that explanation, as they saw no evidence of use for light poles. IEPA fined the contractor $7,500 for the three concurrent violations of its regulations; and both the Pollution Control Board and the Appellate Court have upheld the fine. HBA has been advised that IEPA intends to increase its enforcement and fines relating to the construction industry. This case will provide precedent that will allow IEPA to do exactly that. If your company currently accumulates wastes and/or debris on the ground, now is a good time to change that practice. If you have any questions about how environmental regulations would apply to any of your practices, you should speak with your attorney, before you are visited by IEPA. Sue Schultz, Esq., Sandberg Phoenix & von Gontard P.C., firstname.lastname@example.org, 618-624-3478. 8
SHARE YOUR SUPPORT of new homes built in the Metro East while saving BIG dollars on a full blown marketing campaign! Event Promotion Partner……....$1000 each For less than .025 per household you will receive recognition in print advertisements going out to over 100,000 consumers in St. Clair County & Madison County premier publications including a prominently placed full page ad in the New Homes on Parade magazine, HBA website hyperlinks, recognition in all event press releases, 1st right of refusal for 2017 Homes on Parade. (Valued at $10,000) Deadline for Partnership commitment April 15, 2016 Event Magazine Advertising ….…….. $500 full page ~ $250 half page …….……. Industry specific publication that will be placed in the BND and in-house at the builder participant homes. All ads will be in full color. Only ready-to-use ads can be submitted in .jpeg or .pdf. Choose the Builder page you want to be on! Deadline for Magazine Ad May 2, 2016 Participating Builders to be Announced - Previous Participants included: Barnes Properties ~ CMI Construction ~ CMG Custom Construction ~ Fulford Homes LLC Garrett E. & Herschel E. Johnson RE & Dev. ~ Homes by Deesign ~ McBride & Son Homes ~ Kappert Construction ~ New Tradition Homes ~ Spencer Homes ___Event Promotion Partner $1000 ___ Full Page ad $500 ___ Half Page ad $250 Company _________________________________________________________________________________________________ Contact Name ___________________________________ Email/Phone# _________________________________________ ⌂ Payment Enclosed ⌂ Invoice Company ⌂ Charge to credit card * 4% convenience fee will be added to credit card payments Charge to Visa/Master Card# ________________________________________________ Exp date: ________ Signature: ___________________________________________ The individual completing this contract warrants that he/she has been duly authorized to execute this binding agreement and the HBA Member Company will continue to fulfill these terms even if the individual ceases to be part of the HBA Member Company. SEND COMPLETED FORM TO: Home Builders Association of Greater Southwest Illinois 6100 West Main St., Maryville, IL 62062 Office: (618) 343-6331 - Fax: (618)343-6335 - Email: email@example.com www.hbaswil.org 9 Full Page 7.25”W x 9.75”H vertical ad ONLY Half Page 7.25”W x 4.875”H horizontal ad ONLY
TAKE ME OUT TO THE BALLGAME Wednesday May 25th Game starts at 12:45pm Chicago Cubs vs. St. Louis Cardinals $30 per ticket Section 428 24 tickets have been purchased and will be sold on a first come first serve basis. Please complete the following information to register. Company: __________________________________________________________________________________________ Name(s): ____________________________________________________________________________________________ Email/Phone#:______________________________________________________________________________________ # of tickets________ @$30 TOTAL DUE $____________ ⌂ Payment Enclosed ⌂ Invoice Company (local HBA members ONLY) ⌂ Charge to credit card (credit card payments will be charged and additional 4% convenience fee) Charge to Visa/Master Card# _____________________________ Exp date: _________ Signature: _______________________________________________________________________ Cancellation will be accepted 2 days prior to event ~ No refunds or credits will be given for cancellations or no-shows. Home Builders Association of Greater Southwest Illinois 6100 West Main St., Maryville, IL 62062 10 Office: (618) 343-6331 - Fax: (618) 343-6335 Email: firstname.lastname@example.org
The HBA has partnered with the Wings & Wheels show that attracts over 2,000 consumers! This Event is for Industry Professionals to connect with potential Photo: J.T. McDermott Remodeling “Presidents Choice” 2015 Remodeler of Distinction Award 2016 Exhibitor Packet SATURDAY SEPTEMBER 24 10a-4p 11 SUNDAY 25 9a-2p ST. Louis Regional Airport 8 Terminal Drive, East Alton IL (618) 259-2531
There are currently over 45 of the country’s leading Manufacturer Brands participating in the Member Rebate Program. HBA members are eligible to receive a rebate thru 4 easy steps: Register - provide your company information Claim form - report the products you used every quarter along with the project address with several options to report online, customized excel spreadsheet or rebate fax form. Deadlines to submit quarterly purchases: Feb, May, Aug & Nov Claims Process - receive your remittance statement and your rebate check www.HBArebates.com 12
No Receipts necessary ~ Use 1 or all Manufacturers to claim your rebate If your Subcontractor provided the materials/product you can still claim them for your project as the Manufactuers know you are affecting the sale and therefore qualify for the rebate. 3 different forms you can chose from for your convenience Rebate Claim Form lists all participating Manufacturers in the program for you to choose from with a separate form to list the address of the projects and fax, scan to email or mail. Customized Excel Claim form will prompt you to enter your company name and select the manufacturers you would like to add to your template, then click “download template” to save a copy to your computer and enter the information required. Once completed submit via email to email@example.com. Online Claim Form will prompt you to enter your company name, address of the home/ project and choose the manufacturer(s) from a dropdown box, click submit and repeat for each home/project. 13
March 2016 Renewed Members Arrowhead Building Supply, Inc. Builders Club Rewards CMC Electric, Inc. Coach House Garages Creative Landscapes, Ltd. Dossett Installation, Inc. Heartland Turf Farms Illinois Title and Escrow JLP Homes John Bender, Inc. L.W. Contractors P&A Drywall Supply R.P. Lumber Co., Inc. Trost Plastics, Inc. Remodelers Council Sherwin Williams Co (NEW) Roofers Mart, Inc. (NEW) Green Building Council ActOnEnergy CMI Construction Midwest Block & Brick Professional Women In Building Council Ambassador Floor Co. Homes by Deesign Wells Fargo - Cherity, Shelly & Mindy Mr. Handyman of the Metro East 1309 Vandalia Collinsville, IL 62234 Phone: (618) 659-5055 Email: firstname.lastname@example.org The Herschel E. Johnson Golf Classic SAVE THE DATE: FRIDAY, JULY 15th 14 March 2016 New Members Michael Kurtz Floor Coverings International 140 Iowa Ave Belleville, IL 62220 Phone: (618) 641-9466 Email: email@example.com Website: www.metroeast. floorcoveringsinternational.com Anne Nowak Maids My Way 1189 Hearthstone Drive O’Fallon, IL 62269 Phone: (618) 206-6243 Email: firstname.lastname@example.org Website: www.maidsmyway.com Robert Langreder
2016 HBA Home Show Corporate Sponsors OFFICERS President, Jeff Schmidt - RLP Development 1st Vice President, Dave Padgett - Padgett Building & Remodeling Co., Inc. 2nd Vice President, Joe Lanahan - Joe Lanahan Construction Services Associate Vice President, Mindy Shafer - Wells Fargo Home Mortgage 2016 Home Builders Association Platinum Annual Sponsors Secretary, Jerry Yaekel, Jr. - Yaekel & Associates, Inc. Treasurer, Robb Treat - New American Funding Immediate Past President, Chris Jones - C.A. Jones, Inc. 2016 HBA Gold Annual Sponsors 2016 HBA Silver Annual Sponsors DIRECTORS Jason Klein - Ameren Illinois Michelle Null - Benchmark Title Company Art Stumpf- AUTCOhome Appliances Joel Keel - Custom Floors & More Robert Dee Jr. - Homes by Deesign Joe Knox - Copious Technologies Beth Jacob - Jacob Sunrooms, Exteriors & Baths Aaron Klemme - Klemme Construction Jason Huelsmann - New Tradition Homes Barbara Markham - RE/MAX Preferred, The Markham Network Mike Rathgeb - Spencer Homes Mark Vogt - Vogt Builders, Inc. 2016 HBA Bronze Annual Sponsors OFFICER REPRESENTATIVE DIRECTORS Ken Diel - Diel & Forguson Mark Fulford - Fulford Construction Chris Matteo - Fulford Homes, LLC 15 John Snapat, CAPS, CGR - Fulford Home Remodeling Ron Padgett - Padgett Building & Remodeling Norm Etling - Village of Shiloh
6100 West Main Street Maryville, IL 62062-6688 Office (618) 343-6331 Fax: (618) 343-6335 Email: email@example.com WWW.HBASWIL.ORG 16