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 July 2016 issue www.hbaswi l .org Event results are in! 3 homes SOLD! 80% INCREASE IN WEBSITE TRAFFIC! 2 lucky guests won tickets to a St. Louis Cardinals game Facebook posts and ads reached over 33,500 users and gained 232 new likes on our Consumer Event page. Approximately 644 consumers visited during both weekends Thank you to all of our builder participants, sponsors and industry supporters!
Golf Outing Sponsors Event Sponsor Wells Fargo Home Mortgage Give-A-Way Sponsor Benchmark Title Company First Clover Leaf Bank Fischer Lumber Gershman Mortgage New American Funding Padgett Building & Remodeling RP Lumber The Appliance Discounters Wells Fargo Home Mortgage Yaekel & Associates Stationary Beverage Sponsor Ambassador Floor AUTCOhome Appliances Builders Club Rewards Earthworks, Inc. Martin Glass Company Roofers Mart Inc. Vogt Builders Wells Fargo Home Mortgage Your 2016 Golf Committee: Chair: Robb Treat, Guaranteed Rate Inc. Richard Shemwell, Arrowhead Building Supply Michelle Null, Benchmark Title Jon Edler, Henges Interiors Shari Newby , IKO Dave Padgett, Padgett Building & Remodeling Cherity Freeze, Wells Fargo Home Mortgage Rob Verheyen, Wilke Window & Door 2 Course Contest Sponsor Belleville Supply Company Custom Marble Hallmark Stone Professional Women in Building Council RP Lumber Wells Fargo Home Mortgage Hole Sponsors Allen Roofing & Siding Arrowhead Building Supply Archway Heating & Cooling Bank of Springfield Belleville News-Democrat Broadview Screen Central Bank of St. Louis CertainTeed Corp. Chesley Fence Diel & Forguson First American Title Insurance Gershman Mortgage Greater Gateway Association of Realtors Guaranteed Rate Midwest Block & Brick P & A Drywall Supply Providence Bank Realtors Association of Southwestern Illinois Rebel, Inc. Red-E-Mix Shake and Shingle TheBANK of Edwardsville Veterans United Home Loans Wells Fargo Home Mortgage Wilke Window & Door
The Herschel E. Johnson Golf Classic FRIDAY, JULY 15th, 2016 Far Oaks Golf Course 419 Old Collinsville Rd., Caseyville Check-in/Lunch 11:00 am Shot Gun Start 12:00 pm ON COURSE GAMES & CONTESTS ARE ALL INCLUSIVE! $125 per golfer ~ includes lunch, golf, drinks and dinner (dinner only $25 per person) 1st, 2nd & 3rd place Prizes for A & B flights Skins & Mulligans sold at $20 per team Appropriate attire required: Soft Spike facility. Men collared shirts ~ Ladies golf sleeveless shirts permitted. Personal coolers are strictly prohibited! Volunteers are a must for this event! Please contact the HBA office if you can spend the day with the golfers (meals not included) Primary Contact_____________________________________________ Company Name_____________________________________________ Phone Number______________________________________________ E-Mail____________________________________________________ Total Golfers Team Mulligans Team Skins ___ FULL ___ $ 20 p/team ___ $ 20 p/team Total Dinner Only ___ $25 each SPONSORSHIPS Give-A-Way Sponsor ___ FULL Stationary Beverage ___ FULL Course Contest Hole Sponsor SPONSORSHIP OPPORTUNITIES (includes 1 meal for company representative) Give-A-Way Sponsor..………….FULL Each golfer will receive a great give-a-way gift with your logo. Stationary Beverage Sponsor…...FULL Be the “go to” stand for all golfers to get their staple refreshments on the course. Course Contest Sponsor………...$150 We provide the game and prize, you send the talent and everyone is a winner. Games such as scattered flags, chip shot contest, sling shot and more will be offered. Hole Sponsor……………..…….$100 Company name and logo on a course sign. Complete the following information to register/sponsor this exciting event Name_____________________________________________________ Name_____________________________________________________ Name_____________________________________________________ Name_____________________________________________________ METHOD OF PAYMENT: ___ Check Enclosed ___ Invoice Member Company ___ Charge to Visa/Mastercard* *credit card payments will include an additional 4% convenience fee Card# _____________________________________________ Exp Date ________________ City/State/Zip ___________________________ Signature____________________________ Cancellation will be accepted 3 days prior to the OUTING ___ $150 each ___ $100 each Total Amount Due $__________ 3 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 Office: (618) 343-6331 - Fax: (618)343-6335 - Email: hba@hbaswil.org EVENT SPONSOR
14 Million Households “Priced Out” by Government Regulation BY: NATALIA SINIAVSKAIA ON MAY 12, 2016 NAHB Economics estimates that 14 million American households are priced out of the market for a new home by government regulations that, on average, increase the new home price by 24.3%. Households become “priced out” when they no longer qualify for a new home mortgage because of higher prices. A recent NAHB study estimated that, on average, regulations imposed by government at all levels account for 24.3% of the final new home price. For a typical new single-family home built for sale, this translates into additional $84,561. The NAHB Priced Out Model uses the most recent US household income distribution and estimates that 48.4 million US households can qualify for a new home mortgage in the absence of government regulation. However, after the regulatory costs are added to the price, only 34.4 million households remain able to qualify for a mortgage. The difference is 14 million US households priced out of the new home market by price escalations due to government regulations. The assumptions NAHB Economics typically uses in “priced-out” computations are a down payment equal to 10 percent of the purchase price and a 30-year fixed rate mortgage. For a loan with this down payment, lenders would typically require mortgage insurance, so NAHB also assumes an annual premium of 45 basis points for private mortgage insurance. Information about property taxes and property insurance per dollar of home value comes from the 2014 American Community Survey (ACS). The current version of the NAHB Priced Out Model uses the most recent US household income distribution based on the 2014 ACS data. NAHB Economics makes relatively minor adjustments to the ACS income distribution to account for income and population changes that may have occurred since 2014. Even though the NAHB Priced Out Model does not estimate effects of new regulation on new home sales or housing starts, it highlights often overlooked effects of regulation on affordability of new homes. Applications being accepted for The Remodelers Council created the Remodelers of Distinction Award (RODA) to bring attention to the extraordinary work performed by remodelers in the Metro East. Applicants and Winners receive consumer and peer recognition throughout the year in print, social media and HBA Remodelers website page. Deadlines & Fees: October 1st, 2016 $75 per entry for HBA Member $125 per entry for Non-HBA Members Categories: Addition, Basement, Bathroom, Deck, Exterior, Kitchen, Landscaping, Outdoor Living Space, Specialty Projects, Structural, Waterproofing and Whole House 4 $25 Entry Late Fee (project submission after deadline)
Friday - August 26th, 2016 12 pm Registration Town Hall Archery 5901 Cool Sports Rd., Belleville *40 Targets - bow rentals available *No range finders, broadheads or blunt points $40 for individuals $75 for team of two $150 for team of four Includes: Arrow Quiver, Drinks, Lunch and Friendly Competition CASH PRIZES for 1st, 2nd & 3rd Place teams and for Top Arrow Registration: complete the following information and return it to the HBA office (please print) ___ $40 Individual ___ $75 Team of two ___ $200 Arrow Quiver Sponsor TOTAL DUE $ _______ ___ $150 Team of four ___ $100 Food/Beverage Sponsor Method of Payment: ___Member Invoice Credit Card# ____________________________________ *credit card payments will include an additional 4% convenience fee ___Check ___ $50 Station Sponsor ___Visa/MasterCard* Expiration: ______ Signature: ________________________ Company Name: ________________________________________________________________________________ Contact Name: Sponsorships worth aiming for! Arrow Quiver Sponsor……………$200 Logo on the Quiver given to all shooters Food/Beverage Sponsor………....$100 Company Name on signage at stand Station Sponsor……….…................$50 Company Name on signage at a field _______________________________ Phone#/Email: ___________________________________ Name of attendee(s) _______________________________________________ _______________________________________________ HBA Policy: Registration for the 3D Shoot is considered confirmation of your participation and will be invoiced if cancellation is not made within 3 days of the event. _______________________________________________ _______________________________________________ Home Builders Association of Greater Southwest Illinois 6100 West Main St., Maryville, IL 62062 5 Office: (618) 343-6331 - Fax: (618)343-6335 www.hbaswil.org ~ Email: hba@hbaswil.org
I t was a great evening to spend t ime wi th fel low friends and co -workers at the Fai rmount Park Racet rack. Many bets were made making each race ful l of exci tement and ant icipat ion in hopes that someone would win big. An ext ra special feature was seeing the eight beaut iful Budweiser Clydesdales make an appearance on the t rack. Sponsored by our 2016 Platinum Sponsors 2016 Building Industry Laws You Should Know Book! We are excited to announce the 2016 Building Industry Laws You Should Know book. This publication is the result of your local and state Home Builders Associations working together to provide you with valued information of Illinois Building Laws put into this reference book. Laws included are as follows: Builder & Remodeler Laws Consumer Protection Laws Illinois Energy Conservation Code Land Development Laws Tax Policy Laws Elected Officials 99th General Assembly As a member of the HBA and as one of the many benefits you have received this book complimentary in the mail. In addition to the book we have included the HBA logo decal so you can proudly display your membership status on your store or vehicle window, hardhats etc. If you would like additional copies please contact the HBA office at (618) 343-6331. 6
5pm ~ Thursday, August 18th Bella Milano 455 Regency Park, O’Fallon Hear from local Congressmen about the issues effecting our industry, businesses and the work they are doing for us in DC. Congressman Shimkus is a senior member of the House Energy and Commerce Committee. Chairman of its Subcommittee on Environment and the Economy. He also serves on the Energy and Power; Health; and Communications Technology Subcommittees. Congressman Bost is on the House Committees for Agriculture, Transportation & Infrastructure and Veteran’s Affairs. He also serves on the Conservation & Forestry; General Farm Commodities & Risk Mgmt; Highways & Transit; Railroads, Pipelines & Hazardous Materials; Water Resources & Congressman John Shimkus Congressman Mike Bost Environment; Economic Opportunity; Disability Assistance & memorial Affairs Subcommittees. # of reservations ____@ $35 per HBA Member ~ includes Dinner and soft drinks Company Name: __________________________________________________________________________________________ Phone# & Email: _________________________________________________________________________________________ Name(s) of attending: ______________________________________________________________________________________ ___Amount enclosed or payment below ___Will pay at the door (no shows will be invoiced) __________________________________________ Charge to Visa/MasterCard Number* ______ Exp Date ___Invoice company _____________________________________________ Signature *credit card payments will include an additional 4% convenience fee Mail to: HBA PAC, 6100 W. Main Street, Maryville, IL 62062 –or- Fax to: (618) 343-6335 HBA Policy: Registration for an HBA Event is considered confirmation of your participation and will be invoiced if cancellation is not made within 3 days of the event. A copy of our report is (or will be) available from the State Board of Elections, Springfield, IL 7
Contractors Exempt from Overtime Pay? Maybe Not… Employers and need to know about these changes to overtime rules. Under the Fair Labor Standards Act (FLSA), which originally introduced the concepts of a 40 hour work week, a minimum wage, and “time-and-a-half” overtime pay, the Department of Labor is changing the rules for overtime exemptions. The new standards are outlined in the “Final Rule on Defining and Delimiting the Exemptions for Executive, Administrative, and Professional Employees.” The Final Rule updates the salary and compensation levels needed to exempt certain workers from overtime pay. The new rules are effective December 1, 2016. In order for an employee to be exempt from overtime pay, he or she must meet three conditions. These are often called “white collar exemptions.” 1. Salary basis test – meaning that a worker is paid on a salary basis rather than hourly. 2. Salary level test – meaning the worker’s salary falls within a certain range. 3. Duties test – meaning the job involves exempt duties, including certain professional fields and various management or executive responsibilities. The only requirement affected by the Final Rule is the salary level test. Any employee earning more than $913 per week (or $47,476 per year) will be exempt from overtime pay, provided they also pass both the salary basis and duties tests. The amount is currently $455 per week (or $23,660 per year.) Up to 10% of this standard salary level can include nondiscretionary bonuses and incentive payments such as commissions. The other major change is that this wage threshold will be automatically adjusted every three years, beginning on January 1, 2020. Options for employers for responding to the Final Rule Employers may want to evaluate their payroll data and the needs of their business to decide if they should make any changes with compliance to the Final Rule. The following are general options and are not intended to be specific suggestions. 1. Make no changes – An employer can choose to make no changes to his/her employees’ pay or hours. They will continue to pay current salaries but will now include overtime after 40 hours for all employees making less than $913 per week. 2. Raise salaries – An employer may choose to raise salaries above the $913 threshold for certain employees. If the employee meets the two other white collar exemption criteria, they would be exempt from overtime pay. 3. Reorganize workloads, adjust schedules or spread work hours – Distributing assignments to different employees may equalize the overtime necessary to complete projects. 4. Adjust wages – Changing a salaried worker to an hourly rate may prove more costeffective. Seasonality is not a factor and "compensatory time" cannot be used to offset overtime from one week to the next. Exceptions Sub-contractors control their own employees and overtime is not an issue with the general contractor. As always, be careful, to make sure they qualify as an independent contractor or you may be liable for other payroll issues as well as overtime. At Diel & Forguson LLC, it is our job to make sure that you have the knowledge you need to comply with the ever-changing rules and laws affecting you and your business. We are here to answer questions and offer advice about your specific situation. O'Fallon, IL Kenneth R. Diel, CPA, CVA 852 Cambridge Blvd, Suite 100 O'Fallon, IL 62269 618-632-7574 8 St. Louis, MO 1200 South Big Bend St. Louis, MO 63117 314-454-0438
2016 Fall Home Show at St. Louis Regional Airport 8 Terminal Drive, East Alton, IL (618) 259-2531 Exhibitor & Sponsorship Packet Available at www.hbaswil.org ONE DAY ONLY EVENT! The St. Louis Regional Airport Wings & Wheels combined all of their events into one day! Our new Fall Home Show date and time is Saturday - September 24th from 9 am - 4 pm New Booth Costs: $225 to $375 HBA Fall Home Show Plan download the current floor plan at www.hbaswil.org 9
The Economic Forecast for the Second Half of 2016: Decent but Nothing Remarkable Despite GDP again slowing in Q1, as has been the case for the past few years, the economic recovery that began in July 2009 remains intact. The poor performance of the US economy from January through March was almost expected, and the incoming employment, housing, and service sector data all point to a modest economic pickup. GDP growth the rest of the year should average 2.2%, with growth in Q2 closer to 2.75% as the economy rebounds from a tough Q1. The combination of continued wage growth and increased residential construction activity suggests that 2016 will probably improve as it progresses. Despite weak energy prices, a continued strong dollar that has hurt manufacturing by making US exports costly and imports cheaper, and a struggling agricultural sector, the rest of the economy is OK. As long as the service sector and construction continue to expand and wages rise, the US economy will continue to grow despite the headwinds it faces. Importantly, the labor market continues to strengthen, voluntary quit rates are rising and are almost back to where they were before the Great Recession, the number of involuntary terminations keeps falling, and job creation, while down from last year, remains strong. At this rate, there will be little slack in the labor market 12 months from today. Lastly, passage of the FY 2016 budget package has boosted economic activity as it extended some tax breaks and eased spending caps on domestic and military spending, making fiscal policy pleasantly expansionary. A definite economic bright spot in 2016 has been housing, and that is due to rising household formation. After averaging well over 1.2 million annually from 1983 through 2006, household formation plummeted to just 600,000 in 2014. Since then, it has been rising by about 1.2 million a year. Add to this slightly improved access to credit, and housing starts should reach an annualized average rate of 1.19 million during the second half of 2016, their best level since late 2007, with new single-family construction contributing at a pace of 810,000 units and multifamily adding 380,000. Despite being severely constrained by a lack of inventory, pending home sales are strengthening and existing home sales should rise by 3% annually, while home prices should rise by 5% annually. As for inflation, it remains benign but shows signs of slowly rising from its current level. The dollar is likely to strengthen slightly in the latter part of the year and oil prices appear to be rising, thus the two trends that have exerted strong deflationary pressures on imports and energy respectively should dissipate. Moreover, as the unemployment rate continues falling, labor shortages are becoming increasingly widespread. This pushes up wage growth, which is definitely rising, albeit modestly, and thereby boosts household spending. However, rising prices and wages will push the Fed to raise shortterm rates by one-quarter-of-one percent as early as July, and certainly by November or December. Long-term rates have bottomed and 10-yr Treasuries will end the year at close to 2% as the economy strengthens. In short, the economy continues to grow modestly. Short-term interest rates are likely to start rising, wages are rising, and residential construction activity looks to continue to slowly strengthen as we go into 2017. Most critically, continued solid job creation will keep consumer spending up and the likelihood of a recession during the next six months, close to zero. 10 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. You can describe to have the blog delivered directly to your email by visiting the website or by texting the word “BOWTIE” to 22828
June 2016 Renewed Members Joe Lanahan Construction Services, Inc. Midwest Block & Brick SunWise Electric & Solar, Inc. Remodelers Council J.T. McDermott Remodeling Contractors LS Building Products Mosby Building Arts Consumer Events Page Green Building Council HBA Members Page Professional Women in Building Remodelers Council Earthworks 4287 N Hwy 51 Perryville, MO 63775 Phone: (573) 547-9097 Email: aaron.thieret@earthworksstone.net June 2016 New Members Aaron Thieret 11
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Taste of Southwest IL GOLF OUTING FRIDAY, SEPTEMBER 30, 2016 TAMARACK COUNTRY CLUB, SHILOH Check-in 11:30 am Shot Gun Start 12:00 pm Golf - $75 each Food on the course provided by local restaurants Friday - October 14th, 2016 Proceeds to benefit the PWB Student Scholarship & School Project fund. $40 per individual - $200 per team of 5 Starts at 6pm St. Clair Bowl 5950 Old Collinsville Rd Fairview Heights Thursday - November 3rd, 2016 ANNUAL 5pm Happy Hour ~ 6pm Trivia VFW Post 5691 1234 Vandalia Collinsville Trivia & Dinner $25 p/p 13
Do you need a tool to help with: Marketing Selling your new home or remodeling project Promoting confidence in you & your company Resolving Customer Concerns Avoiding misunderstandings “Nit-Picking” Customers Provide your Customers with an Illinois Quality Assurance Builder Standards Book! $30.00 ea. + shipping & taxes Each 200 page book includes Quality Standards for the most prevalent issues that arise between the Builder/ Remodeler and the Customer. Below is a sample of a common issue in Illinois, exterior concrete cracking. The standard is explained to define the expectations of quality craftsmanship for the Customer. These books will help eliminate problems before the project even begins! Only Members can buy these books! A Measurable Difference The Illinois Quality Assurance Builder Standards provides, new homebuyers and remodeling homeowners a way to measure the quality of the project against an industry approved set of standards. These standards create a series of performance standards that the builders and the homeowners can use to communicate and understand one others' expectations regarding the building or remodeling project. The standards address the most prevalent issues that arise between the builder and the customer before the project, and, most importantly, after the project is completed. All too often it is the undefined expectations that create the majority of the problems encountered in the building and remodeling processes. The standards will help eliminate problems before the project even begins. 6100 West Main Street – Maryville, IL 62062 or 618-343-6331 - tbutler@hbaswil.org 14 Sample of an Issue in the QA book. 4.4 Cracks in Exterior Concrete Observation: Exterior concrete - sidewalks, porches, patios, drive- ways, etc. - are cracked. Standard: Some random cracking of exterior concrete will occur and is to be expected. If settling causes cracks that exceed 1/4 inch width or 3/16 inch in vertical displacement, it is considered excessive. Builder’s Responsibility: The builder is responsible for correcting only those cracks that exceed the standard. An appropriate joint or crack filler can be used and is acceptable for a crack up to 1/2 inch in width or vertical displacement. Homeowner’s Responsibility: For aesthetic purposes, smaller cracks may be filled with a waterproof concrete caulk. While this may reduce the appearance of the crack, it should be noted that there will be a color and texture variance between the original concrete and the caulking. Discussion: Driveways, patios, and sidewalks should have expansion and contraction joints which help to control surface cracking. Refer to definition number 5 on page 9. Contained in the 200 pages of the QA Book are 22 section of the most prevalent issues encountered in the construction process. Each section contains numerous sub-sections of specific items. An example is the above 4.4 Cracks in Exterior Concrete. For more information or to order, contact Tracy Butler @ HBASWIL
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 - Guaranteed Rate, Inc. 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: hba@hbaswil.org WWW.HBASWIL.ORG 16
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