The Digital Magazine of the Fairfield County HBRA March 2017 UPCOMING April 5, 2017 GMM at CT Stone April 26, 2017 HBID at the Capital May 3 GMM at Clarke May 22-23 OSHA10 Construction FEATURED March GMM Trade Showcase Member News Luxury Home Tour April 21-23, 2017 HBRA Luxury Home Tour

MEET THE MOST POWERFUL BUSINESS PARTNERS IN FAIRFIELD COUNTY. Kathryn A. Eren, VP, Cash Management Officer; Lisa Stuard, AVP Commercial Loan Administrator; Maureen Hanley-Bellitto, SVP, Commercial Team Leader; Gregory Pastor, Jr. VP, Commercial Banking Officer; Kim Karl, VP, Commercial Banking Officer; Deep community roots. Unrivaled market knowledge. Unmatched customer service. When a bank builds its commercial banking team around the values that truly make a difference in helping your business and community grow and prosper, that’s more than banking. That’s changing the way you bank. Talk to us today. Visit bankatunited.com/commercial Look no further for an insurance agent who can work with you to design an insurance portfolio just right for your business. If you engage in construction or remodeling of one or two family residences in CT then I want to talk to you. Our construction insurance program includes: • General Liability • • • Property Business Auto Inland Marine • Workers Compensation • Umbrella • Builders Risk Kim Marie DiMatteo, CIC, MWCA I have been in the construction insurance business since 1992. I know the markets, the products, and what’s right for you. Call me today to schedule a convenient appointment. 79 Bridgeport Ave, Shelton, CT 06484 | 203.924.5429 | www.dimatteogrp.com

HBRA VIP CIRCLE 2016-17 OFFICERS President Chris Steiner Steiner, Inc. Sr. Vice-President Anthony DeRosa DeRosa Builders Vice-President Kim DiMatteo DiMatteo Group Secretary/Treasurer Michael Church William Pitt Sotheby's Immediate Past President Peter Gaboriault Bear Paw Builders Peter Battaglio Hocon Gas Max Bender Bender Supply Steve Berko Four Square Build & Design Ken DeLeo Doherty & DeLeo John Hertz Hertz Construction 2016-17 DIRECTORS Brian Kurtz Interstate Lumber Rob Michaud The Michaud Group Steven Roth Elevator Service Company Alex Shook Pella Commercial Michael Wood Wood Builders gas LIFE DIRECTORS Joanne Carroll JMC Resources Jerry Effren The Greyrock Companies Gary Fanali City Carting Peter Fusaro Preferred Builders Maureen Hanley United Bank Andrew La Sala Jr. Cannondale Building & Design Michael Palumbo ERI Building & Design Nick Yanicelli Susquehanna Enterprises MEDIA SPONSOR Thank you to the following VIP Associate Members for their support in 2017. Due to their generosity the Association greatly benefits - from developing new events and educational opportunities for the membership, to keeping our lights on! MARCH 2017 | HBRA of Fairfield County | 3

IN THIS ISSUE Board of Directors VIP Circle Letter From The CEO Upcoming Events March General Membership Meeting Associate Trade Showcase 2017 8 March GMM 12 Showcase 14 Luxury Home Tour 4 | HBRA of Fairfield County | MARCH 2017 Housing Defense Fund Luxury Home Tour 2017 HBRA Breakfast Series - Sales Institute April 5th General Membership Meeting New Members Builder Spotlight Altamura Homes Karp Associates Member News Non Qualified Referred Compensation in a Nutshell Builder News Mid Century Modern A Magnet for Millennials, Multifamily Market Employers muse use new I-9 Form Paradigm shift: How Universal Thinking Can p.3 p.3 p.6 p.7 p.8 p.10 p.13 p.14 p.16 p.18 p.19 p.21 p.22 p.24 p.28 p.28 p.30 Help Customers Understand Aging In Place Millennials, Baby Boomers to Drive Remodeling p.30 Growth Lumber Prices Rise to Start 2017 Amenities Help New Home Communities Stand Out Seminars OSHA 10 Hour Construction Member Benefits Advertising/Sponsor Pages United Bank DiMatteo Interstate Lumber County TV & Appliance CTC&G Elevator Service Company New England Home Fairfield County Bank East Haven Builders Supply Ridgefield Supply SmartHome Westchester Modular Homes Event Hocon Gas Ed’s Garage Doors Ring's End Editorial Staff Gina Calabro Publisher/Editor Clare Michalak Designer Sarah Iannarone Executive Assistant HBRA of Fairfield County 2228 Black Rock Turnpike, Suite 307 Fairfield, CT 06825 203-335-7008 hbra@buildfairfieldcounty.com www. buildfairfieldcounty.com Want to advertise? Contact the office for more information and rates. Cover Photo: BA Staging and Interiors p.30 p.31 p.32 p.33 p.2 p.2 p.5 p.5 p.16 p.18 p.20 p.23 p.23 p.26 p.27 p.28 p.29 p.31 p.34

spin zoom click explore Take a virtual tour through our award-winning showroom from the comfort of your home or office. Interstate + Lakeland Lumber’s Design Center is a state-of-the-art, high-end, custom showroom built in the original 1922 mill shop. It provides a gallery style setting for premium windows, doors, and hardware and our specialty, custom millwork. Our experienced representative is on hand to answer any of your questions and provide solutions to your building challenges. To learn more, contact Frank Bowron at 203-531-8050 ext 1156 fbowron@interstatelumber.com http://www.interstatelumber.com/services/designcenter-tour.html THE SMART CHOICE For Making Your Dream Kitchen A Reality SMART HOME CONTROL THERMADOR SUBZERO / WOLF GE MONOGRAM ...and more BEST SERVICE AT THE GUARANTEED BEST PRICE In-Store And Online 2770 Summer Street • Stamford, CT 06905 203-327-2630 STORE HOURS: MON & THURS: 9AM-9PM | TUES, WED, FRI & SAT: 9AM-6PM | SUN: 11AM-5PM www.countytv.com MARCH 2017 | HBRA of Fairfield County | 5

MESSAGE FROM THE EXECUTIVE OFFICER Dear HBRA Members, T hanks to all that attended the Legislative Night/ General Membership Meeting on March 1st. The legislators that attended heard from our members on the key issues that effect the building industry and the business climate. Let’s keep up the momentum and plan to attend the Home Building Day (HBID) at the Capitol on April 26th. See page 6 for registration details. Due to the snowstorm on March 14th, we had to reschedule the 2nd Builders Event/Trade Showcase to March 20th. Thanks to all of the Associate members who set up displays and to the builders who joined us for this fabulous event. See the photos on pages 10-12. We had a full house for the March 3rd Energy Codes, sponsored by Energize CT and Ring’s End. And we are SOLD OUT for the March 30th and 31st, we have an OSHA 10 Construction class. We have since scheduled a May OSHA 10 class - see page 32 for details. Register for the April 5th Barbecue/ General Membership Meeting at Connecticut Stone. Dinosaur Barbecue will be grilling up some great food for this event - you won’t want to miss it! Get your tickets for the 2017 Luxury Home Tour! The Friday night event at the 13 acre estate of Sound Beach Partners will kickoff the weekend event. See page 14 for info. A new education series is being offered through one of our members - Sandler Training. I am currently working with the state for approval on CEU’s for the Real Estate Industry for these courses. More information is available on page 17 and on our website - www.buildfairfieldcounty.com Mark your calendar for May 3rd, the Building Official Night at Clarke Showroom in South Norwalk. Please be sure to check out the The Builder Member Spotlight. Two more of our builders are highlighted - if you would like to be included, please contact me or the office. As always, if you have any questions, please call the office or e-mail us at hbra@buildfairfieldcounty.com! Best, Gina Calabro gina@buildfairfieldcounty.com For Builders, the real definition of success is a life and work that brings personal fulfillment and lasting relationships and makes a difference in the world in which they live. - Jerry I Porras 6 | HBRA of Fairfield County | MARCH 2017

April 5, 2017 General Membership Meeting Connecticut Stone 39 Larkin Street Stamford, CT Click Here to Register April 26, 2017 Home Building Industry Day at the Capitol (HBID) Old Judiciary Room, Capitol Bldg (210 Capitol Avenue Hartford CT 06106 Click Here to Register May 3, 2017 General Membership Meeting Clarke 64 South Main Street South Norwalk, CT Click Here to Register Upcoming Committee Meetings Luxury Home Tour Committee March 28 - 9:30AM Fairfield Public Library Golf Committee Meeting April 13 - TBD Associates Council April 11- 4:30 HBRA Office Membership Committee Meeting April 19 - Noon HBRA Office MARCH 2017 | HBRA of Fairfield County | 7 April 21-23, 2017 Luxury Home Tour Friday Night Kick-off Party Greenwich 6PM- 8PM Limited Tickets Saturday & Sunday Home Tours 10AM - 5PM Get Tickets April 28, 2017 Sales Institute Ring’s End Educational Facility Stratford, CT Click Here to Register May 22-23, 2017 OSHA 10 Construction Ring’s End Educational Facility Stratford, CT Click Here to Register

HBRA EVENTS March General Membership Meeting and Legislative Night O ver 100 members and guests attended the HBRA Legislative Night, sponsored by City Carting and Recycling. Legislators attending the event were State Sen. Bob Duff D- Darien/Norwalk, State Sen. Craig Miner, R-Bethel/ Litchfield, along with State Rep. Tom O’Dea, R-New Canaan/Wilton, State Rep. Jonathan Steinberg D-Westport, and Terrie Wood R-Darien/ Norwalk and Norwalk Mayor Harry Rilling. The biggest issues brought to light was the overregulation of the building industry and keeping businesses in Connecticut. Gaining approvals from zoning boards in some cases may take as long as two years. Although this is mostly at the municipal level, it impacts the state as well on Connecticut’s business climate. “Building a house has, conservatively, 50 companies working on it,” commented architect Chris Pagliaro, “Think how much a single-family house moves the local economy.” Comments from the attending crowd also followed the same sentiments asking that the towns and state should streamline the process. Faster approval processes would increase the number of homes built, which ultimately helps drive local economies. 8 | HBRA of Fairfield County | MARCH 2017

Additional Photos at http://buildfairfieldcounty.com/photo-gallery/ MARCH 2017 | HBRA of Fairfield County | 9

HBRA EVENTS Builders Event – Trade Showcase T he 2nd Annual Trade Showcase for Builder Members was held March 20th at the Sheraton Stamford. Builders attending the event had the opportunity to meet with 40 member companies of the HBRA, partake in some delicious food and drink and win a variety of prizes. Thanks to our Sponsors Diamond Gold Silver Companies in attendance: Advanced Home Audio Alside BDX Bender Birgit Anich Staging Interiors Brothers That Just Do Gutters Buy Railings dba Lido Designs C & G Media Group Complete Dismantling Services Connie Cooper Designs CT Appliance & Fireplace Distributors D.J.A. Imports Eastern Inc. Steel Contracting Ed’s Garage Doors Fordham Marble Gault Energy Gault Stone GreenBuilt CT HydroShield of Southern Connecticut Interstate+Lakeland Lumber 10 | HBRA of Fairfield County | MARCH 2017 LTW Design LLC Ring’s End Sharon McCormick Design Smarthome Systems Stephanie Rapp Interiors TD Bank TORRCO Wells Fargo Yankocy Wholesale Building Materials

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HBRA NEWS Housing Defense Fund What is HDF? HDF (Housing Defense Fund) is the HBRA’s account that pays for outside advocacy work. It’s a critical component of the HBRA’s extensive lobbying effort on behalf of our industry. HDF pays for legal actions, public affairs and data research—all in support of the HBRA’s advocacy goals—and required additional lobbying beyond our normal staff and contract lobbyists who work daily for all of us at the state capitol. What HDF is Not? HDF is not a political fund and not one dollar of HDF can or will go to any political candidate or party committee. Therefore, campaign finance laws do not apply to the HDF and there are no limits on personal or corporate contributions to the HBRA’s HDF. HDF Depends on Contributions from Industry Members & Friends HDF needs HBRA’s Builder and Associate members, and others, to contribute so we can engage in more effective advocacy to help remove regulatory burdens and promote the housing industry statewide. When our advocacy is successful, everyone wins. Together, we’re stronger. The more who contribute to HDF, the louder our voice can be heard. Pledge to Join an HDF Club Level Today! Peter Fusaro, the HBRA State Statement spoke to builders and associates at the March 20th Trade Showcase about the Housing Defense Fund and the importance to our industry. Every dollar of your contribution will be used to promote the residential construction industry, seek regulatory and tax relief, and defend against attacks on home building, remodeling and land development. Download the Donation Form Benefits of HDF Club Membership Supporter’s Club ($25-$249) members will receive: • A silver lapel pin (stamped with the year of your contribution), plus • Reduced (nominal) registration fee to our exclusive HDF Club Member Annual Thank You reception.* Defender’s Club ($250-$499) and President’s Club ($500-$999) members will receive: • A gold lapel pin (stamped with the year of your contribution), plus • Permanent recognition on our HDF Trophy, with your name associated with your club level and year of contribution (e.g., Founding Members, 2017, 2018), plus • FREE registration to our exclusive HDF Club Member Annual Thank You reception.* Chairman’s Club ($1,000+) members will receive: • All of the benefits of Defender’s and President’s Club membership above, plus • FREE registrations to all HDF fund-raising events and receptions held in the same year of your Chairman’s Club membership (President’s and Defender’s Club members will receive a reduced registration fee (typically, $50) for any HDF fund-raising event held in the same year of your club membership). * Invitations for the exclusive HDF Club Member Thank You reception are extended to all current year and immediate prior year HDF Club members. MARCH 2017 | HBRA of Fairfield County | 13

HBRA NEWS Luxury Home Tour Mark your calendars for April 22 & 23! T he first Luxury Home Tour presented by HBRA of Fairfield County features an award winning Lucas Point Old Greenwich home by Karp Associates, a spectacular 7,000 sf stone mansion in Riverside by Argus Development, a 9,000sf amazing Darien home by Doherty & DeLeo Development, and a sophisticated and chic colonial from Altamura Homes. The tour will be open to the public on Saturday and Sunday April 22-23 from 10AM to 5PM. Tickets to view all four homes on Saturday and/or Sunday can be purchased online and with the ParadeCraze App on your smart phone for $20, and for $25 at the door. All visitors receive the Official Tour Guide Book and the first 400 visitors receive a premier Milan Jute Tote. On Friday April 21st, a cocktail kick-off event from 6PM to 8PM with hors d’oeuvres, a wine tasting with One Hope Wines, craft beers, and music will be held at the 13 acre Greenwich estate of Sound Beach Partners, who was recognized with the top 2016 HOBI Award in the state for this property. Friday event tickets are $75 and include entry ticket to the weekend home tour. These tickets are limited so purchase them quickly here! All net ticket sales will be donated to two charities – PSC Partners Seeking a Cure [http://www.pscpartners.org] and the Fairfield County Community Foundation [http://fccfoundation.org]. Visit CTLuxuryHomeTour.com for more information. 14 | HBRA of Fairfield County | MARCH 2017

Karp Associates Doherty & DeLeo Development Argus Development © Tim Lee Photography © Tim Lee Photography Altamura Homes Sponsors: MEDIA SPONSOR MARCH 2017 | HBRA of Fairfield County | 15

Cottagesgardens.Com | marCH 2017 ArchitectureIssue The 16 | HBRA of Fairfield County | MARCH 2017 connecticut cottages & gardens March 2017 cottagesgardens.com

HBRA NEWS HBRA Breakfast Series – Sales Institute The HBRA of Fairfield County and Sandler Training will be launching a Sales Institute in April and May at the Rings End Educational Facility in Stratford. This sales training is designed to help discover how simple improvements to your sales cycle and close ratio can increase your team’s highest level of performance to exponentially improve your bottom line. The Sandler sales methodology fosters an attitude of leadership, rather than just emphasizing technique. Reinforcement training facilitates the development of new and empowering behaviors, attitudes, and sales skills, mapping a unique road map to lasting success. Three courses will be offered that can be taken individually or as a package. Classes are from 8AM to Noon – breakfast is provided. The cost for all three courses is only $800 (normally $995), or you can pick and choose a course for $325 each. April 28th: Part A: Understand the 4 Personality Styles Salespeople recognize that establishing rapport with a prospect is an essential ingredient for developing a meaningful business relationship. Learn how personality affects the sales process as well as prospecting. This tool can help you and your employees learn more about personality styles, paving the way toward improved communication. Part B: Developing a Sales System Tired of providing unpaid consulting to potential customers and watching the deals go elsewhere? The Sandler sales system will be different than any other sales call you have ever done. You should hear things from your prospects that you have never heard before. You should be able to “sell” without the stress and pressure of traditional sales. May 12th: Part A: Develop Leverage When it Comes Down to Price Effective questioning strategies help move your prospects’ and customers decision forward. Learn how to ask the tough and effective questions. Part B: Why do People Make the Decisions that They do? Is your brain working for you or against you? Learn how to become a sales psychologist. Understand the barriers to success and develop tools to deal with the difficult prospect/customer. May 24th: Learn How to Separate Yourself from the Competition Tired of drawing up the plans, writing the proposal, and being told “this really isn’t what we’re thinking?” People buy emotionally and justify intellectually. People buy for two reasons – to avoid pain or to gain pleasure. Pain is 4x stronger than pleasure … so are you presenting your proposal effectively? For more information, contact the HBRA office at hbra@buildfairfieldcounty or 203-335-7008. MARCH 2017 | HBRA of Fairfield County | 17

April 5 General Membership Meeting We’ll be grillin’ up a good time! J oin us for Cold Drinks and Good Eats, amazing raffles, networking, and a tour of Connecticut Stone’s fabrication facility! Members are only $20, Non-Members - $50. This month’s Membership Raffle is at $750! * You must be in attendance to win the Membership Raffle. Only active members of the HBRA are eligible to win. Register online or call the office at 203-335-7008 by noon March 31st! Specializing In: Residential Elevators | Commercial Elevators | Construction Hoists Limited Use Limited Application Elevators (LULA) Vertical Platform Lifts | Inclined Lifts | Stair Lifts Dumbwaiters | Material Lifts (Vertical Reciprocating Conveyors) And all other associated Vertical Transportation Equipment Serving: Connecticut, Rhode Island, Massachusetts, and Eastern New York 203-757-5000 www.ElevatorServiceCo.com CT Lic.# ELV. 400105 R1 - RI Lic. # 21 MA Lic.# EC-000093 Providing not one, but ALL Major Manufacturer’s Equipment 18 | HBRA of Fairfield County | MARCH 2017

NEW MEMBERS Welcome to the newest members of HBRA of Fairfield County! Go to www.buildfairfieldcounty.com for their contact info. David Hashemi Classic Home Furnishings For the past 20 years we have had the opportunity to help create environments which are both beautiful and functional. Whether you are looking for the perfect item to complete your room or would like to start anew, our experienced design staff is here to help. Our 20,000 square foot showroom, houses the finest names in the furniture industry at competitive pricing. Renee Jordan Fine Homebuilding Magazine/Taunton Press Fine Homebuilding is the most trusted and authoritative resource for the residential construction and remodeling industry. We uniquely source our content from the job sites and design offices of the most qualified and talented builders and designers in the industry to empower a global workforce with the ability to create the most advanced homes possible. Dave Marsillio Marsillio’s Appliance & TV A family-owned discount appliance and electronics store since 1948. Roberta Mancuso New England Home Connecticut Showcasing unique architecture, design & building that defines luxury homes. Paul Welte Welte Electronic Systems LLC Our mission is to be the most highly regarded and sought after experts in helping families and businesses secure their safety and property through the application of electronic detection, monitoring and notification technology.What sets us apart is our personal attention to our client’s needs. We believe strongly that our success depends on how well we treat our clients personally, as well as how well we perform technically. Pavel Kananovich Woodwell Construction Corp. Woodwell Construction Corp. is a full service carpentry and remodeling construction company, serving Westchester County New York and Fairfield County Connecticut. Our well trained carpenters offer exceptional craftsmanship in custom cabinetmaking, interior and exterior trim, complete from design to installation. MARCH 2017 | HBRA of Fairfield County | 19

WELCOME TO OUR NEW AFFILIATE MEMBERS TD Bank Dorothy Cardillo Fine Homebuilding Magazine/ Taunton Press Justin Fink Fairfield County Bank Eugene Shreiner Tile America Diana Harper Ridgefield Supply Co. Michael Sonderman Ring’s End Mike Oliveri Ed’s Garage Doors LTD Angelo DiMeglio Eric Maar Kling Brothers Builders, LCC Kyle Kling Kory Kling We just got a lead in larchmont for a mud room and laundry room from our ad in New England Home Connecticut’s latest edition! —Karen Bradbury, Closet & storaGe ConCePts We were very excited to see the wonderful article and pictures you did about our store...and wanted to thank you because many customers came in mentioning the magazine. —Pierre and Michelle Gagnon, Couleur ProvenCe Contact Associate Publisher, Roberta Mancuso to learn how New England Home Connecticut can help generate business for your company. rmancuso@nehomemag.com | 203.530.9593 nehomemag.com 20 | HBRA of Fairfield County | MARCH 2017

BUILDER MEMBER SPOTLIGHT A ltamura Homes, LLC A home represents a lifestyle. Just like fashion focus on creating homes that incorporate the latest construction methods and designs while staying true to the time-honored craftsmanship that is the basis of who we are. We build speculative homes as well as custom homes. As a client, you have the option to work with our team to “design & build” your home or provide us with designs from others and we can build. Our goal is to provide the highest level of service Luigi Altamura About Luigi Altamura A passion for Real Estate Development & Home possible and improve on that service continuously. We go all-out to exceed the expectations of our clients. We address needs thoughtfully and in unexpected ways. Communication is the basis for a successful relationship. We value strong relationships in all areas of our business: with Clients, Subcontractors, & Vendors. Open and Honest communication creates synergy. Building is what Luigi is all about. He is involved in every step of the concept & construction phases to ensure client satisfaction and project execution. His personal satisfaction comes from making clients happy. Luigi is a graduate of Villanova University. Luigi Altamura 1200 High Ridge Road Stamford, CT 06905 (203) 861-4200 www.altamurahomes.com MARCH 2017 | HBRA of Fairfield County | 21 changes, so do the styles of homes. Our homes reflect the latest in designs, trends and technology. In the case of a Custom Build project, we will work with you to create a Lifestyle that fits your needs and desires. We are passionate about what we do. Living by this principle makes every job fun for us as well as our clients! We are committed to happy customers.

BUILDER MEMBER SPOTLIGHT A t Karp Associates, our passion for building design and creativity, attention to detail, impeccable client service and professionalism are the cornerstones of our longevity and success. Our team of professionals will listen to your objectives and deliver as outlined, on budget and on time. Renowned for our renovation and remodeling of historic homes, we emphasize architectural integrity and high caliber craftsmanship in every project. A Karp custom home is born out of a collaborative approach between our client and a hand-picked team of professionals. Our experienced oversight, on-going communication and eye for detail help to deliver a home that suits your needs, reflects your way of life and is compatible with its natural surroundings. Whether building a custom home or transforming an existing one, our trusted reputation and experience in residential design and construction allows you, our client, to live your life and leave the details and challenges of building to us. 22 | HBRA of Fairfield County | MARCH 2017 Arnold Karp is the founder of Karp Associates Inc., a Connecticut-based multifaceted firm specializing in professional construction management, real estate consulting and development, the building and development of distinguished custom homes and diverse, unique renovations. Additionally, the firm’s services have expanded to include project rescue for commercial and residential projects along with property management. Arnold Karp 16 Cross Street, New Canaan, CT, 06840 Phone: (203) 972 - 3366 E-mail: inquiries@karpassociatesinc.com Web site: www.karpassociatesinc.com

Financing some of the top builders in Fairfield County. People you trust, service you expect, and products to fit your financial needs. • Construction Financing • Commercial Mortgages • Term Loans • Revolving Lines of Credit 877.431.7431 • www.fairfieldcountybank.com NMLS ID #516624 EQUAL HOUSING L E ND E R MEMBER FDIC ANNOUNCING the arrival of our new 8-story BOOMTRUCK CONNECTICUT - East Haven - Manchester - Newtown SANDY HOOK - 2 Turnberry Lane - 203-426-0030 NEW YORK - Millwood • Mold / Mildew Resistant Board • Fire Rated Board • ½” Light Weight Board • Exterior Sheathing • Metal Studs • Acoustical Ceiling Tile MARCH 2017 | HBRA of Fairfield County | 23

MEMBER NEWS Non-Qualifed Deferrred Compensation In A Nutshell A NQDC in Action Here is an example of how an arrangement would nonqualified deferred compensation (NQDC) arrangement is simply a means of supplementing a key employee’s retirement income and providing survivor benefits. It is a contractual fringe benefit arrangement under which an employer promises to pay specified benefits to a key employee in the event of disability, retirement or other future separation from service. In other words, NQDC is an arrangement where an employer promises to pay an employee in the future for services rendered currently. Should the key employee die prior to retirement, specified amounts would be paid to the key employee’s beneficiaries. Employers use the selective fringe benefit as a part of an overall compensation package to attract, motivate and retain key employees. Since an NQDC arrangement is simply a “substitute” for, or supplement to, current compensation, it is possible to obtain a better balance between present earnings and future retirement income. The deferred benefits, instead of being paid and taxed now, are received after retirement. This maximizes the value of the key employee’s chief asset, his or her earning power, and lessens the need to personally accumulate retirement funds. Once an NQDC arrangement is adopted for one or more selected key employees and implemented by a written agreement, the employer incurs a future liability to make specified payments. It is a sound business practice to hedge this liability by establishing some type of reserve fund from which the payments can be made. Although they must be “unfunded” and employees receive only an unsecured promise from the employer, the benefit obligation may be “financed” through a planned investment strategy. Life insurance is ideally suited for this purpose and is recognized as one of the most practical and economical methods of ensuring the funds for such arrangements. Further since they provide pre-retirement salarycontinuation death benefits to the key employee’s family, life insurance can fully and instantly create the funds necessary to complete the arrangement. The income tax-free death proceeds received by the corporation will offset its after-tax cost of providing these benefits. (In some cases, the alternative minimum tax may apply.) 24 | HBRA of Fairfield County | MARCH 2017 work: Wishing to retain the services of one or more valued key employees, ABC corporation establishes an NQDC arrangement under which it agrees to pay $50,000 per year for 10 years beginning at age 65, provided the key employee remains with the corporation until retirement. If death occurs before retirement, $50,000 will be paid each year for 10 years to the key employee’s family, and in the event of death during the retirement pay-out period, any remaining payments will continue to the family or estate. To help meet its obligation, ABC purchases a life insurance policy on the key employee’s life. ABC will be the owner and beneficiary of the policy. While ABC cannot deduct the premiums it pays, the income benefits eventually paid to the key employee or his or her family can be tax deductible as payment of reasonable compensation. Benefits received by the key employee or family are taxable as ordinary income. Meanwhile, the key employee can feel secure knowing that ABC corporation has a means to help pay for future benefit payments. Advantages to the Employer For an employer, a NQDC arrangement: • Attracts talented people – High-caliber employees are always in demand. To compete successfully for new employees, employers must offer attractive compensation packages; • Retains key employees – The payment of NQDC benefits is usually contingent upon performance. For example, the employee will receive the promised retirement and death benefits only if actively employed at the time payments commence; • Is a selective fringe benefit – The employer is not required to include all employees in this program. The key employees know they are among the “chosen few” selected to participate in the program; • Is a flexible fringe benefit - An NQDC arrangement can be individually tailored to complement other salary and benefit programs. Special consideration may be given to the employee’s objectives when designing an arrangement; • Has a cost that may be predictable; and

• Offers simple administration – These arrangements do not require Treasury Department approval. When established for select nonmanagement or highly compensated employees, they are not subject to many of the requirements or the Employee Retirement Income Security Act of 1974 (ERISA). A one-time notification to the Department of Labor is required when it is first established; Advantages to the Employee For an employee, an NQDC arrangement offers: • Pre-retirement death benefits – An NQDC arrangement can be set up so that all or part of an employee’s salary will continue in the event of preretirement death. The death benefit provided for the employee’s family may be paid in the form of a lump sum or as salary continuation over a period of years; • Increased retirement income – The living benefits provided usually entail payments for a number of years after retirement, although it is possible to continue the payments for the lifetime of both the employee and the surviving spouse. The “ceiling” imposed on qualified plan benefits make NQDC, used to supplement other retirement and Social Security benefits, particularly attractive to highlycompensated employees; and • Greater net income -Net income from a deferred arrangement will often be greater than alternative planning methods. Recent Tax Changes Affecting NQDC Arrangements Internal Revenue Code (IRC) § 409A was enacted to govern the structure and taxation of NQDC. This code section sets forth requirements that must be met in order to receive current tax deferrals. While this fairly new tax code section in no way should deter or reduce the value of establishing a deferred compensation program, it is critical that the client (employer) work with their tax and legal advisors to ensure complete compliance with (IRC) § 409A. Due to some fairly wrongful practices by some large corporations in deceiving their employees with respect to employer-owned life insurance, the Internal Revenue Service (IRS) introduced IRC § 101(j). The code provides that the death proceeds paid on an employer-owned life insurance contract will remain income tax free if certain conditions are met: • The insured (employee) must be notified and consent to having the company own the life insurance on his or her life; and • The employee must be working with the company during the 12-month period before the insured’s death; or • At the time the life contract was issued, the insured was a director or highly compensated employee with the employer (thus an owner, shareholder officer, etc). Furthermore, each year, IRS Form 8925 must be completed by the employer’s tax or legal advisor on behalf of the employer stating amongst other things: • How many people work for the employer; • The number of employees covered by life insurance policies owned by the employer; and • The total amount of insurance in force As with IRCC §409A, 101(j) and Form 8925 should not be a deterrent in establishing a well-drafted NQDC arrangement that will help the employer to attract, reward and retain talented employees. Rather, the federal government is trying to ensure that all arrangements are fairly and properly established under a more defined system and that there is fairness and transparency toward all parties involved in the arrangement. With the help of their tax and legal advisors, each employer interested in designing an NQDC arrangement can still achieve success while complying with all the guidelines without too much extra effort. Conclusion: Of the array of nonqualified key employee fringe benefit plans, a NQDC arrangement can provide significant advantages for both the employer and employee. The information provided is not written or intended as a specific tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. GERALD M. MIRRA, CLU, CHFC, RICP® Corporate Plans Retirement Strategies, LLC 120 White Plains Road Suite 601, Tarrytown, NY 10591 (914)366-8334 MARCH 2017 | HBRA of Fairfield County | 25

Our New Showroom At Ridgefield Supply is Opening in the Spring of 2017 We Will Be Featuring an Extensive Display Showcase of Andersen® Windows & Doors Since 29 Prospect Street, Ridgefield, CT 203.438.2626 www.ridgefieldsupply.com Mon. - Fri. 7 - 4 • Sat. 8 - 4 • Closed Sunday 26 | HBRA of Fairfield County | MARCH 2017 1883 LUMBER • BUILDING MATERIALS • WINDOWS • DOORS • MILLWORK • HARDWARE • PAINT

BUILDERS, ARCHITECTS & INTERIOR DESIGNERS JOIN US FOR OUR MONTHLY TOUR of the Crestron Design Center in NYC! WEDNESDAY, APRIL 5 at 11:00am • ARCHITECTS: Learn Why You Should Include Crestron Technology in the Design Phase of Your Next Project • BUILDERS: Learn How to Increase Your Bottom Line by Adding Smarthome Components into Any Residential or Commercial Space • THE SHOWROOM EXPERIENCE: In-depth look at Crestron Solutions in Real World Environments LIMITED SPACE AVAILABLE To reserve your space call 203-659-4734 We look forward to you joining us at the CRESTRON Design Center in NYC AUDIOVIDEOCT.COM MARCH 2017 | HBRA of Fairfield County | 27 INCLUDES: Train Fare, Lunch & the Tour

BUILDER NEWS Mid-Century Modern a Magnet for Millennials, Multifamily Market I f you’ve ever seen an episode of Mad Men, then you know that drinking policies, smoking habits and gender roles in the office place have evolved significantly throughout the last 50-60 years. You might also realize that some things haven’t changed much at all, or they’ve made a huge comeback—namely, mid-century modern design. Mid-century design elements abound in a multifamily project designed by Beasley & Henley in Atlanta. The resurgence of mid-century modern has been so popular for so long— the better part of two decades—it’s not much of a resurgence anymore, according to Stephanie Henley, principal of Beasley & Henley Interior Design. “Most people don’t even recognize it anymore as mid-century modern. To them, it’s best described as simply ‘modern’ or ‘contemporary’ style,” said Henley, who served on the panel of judges for the 2016 Best in American Living Awards (BALA). Read More W E S T C H E S T E R Morning Session- Registration and Continental Breakfast 8:30 Factory Tours Begin at 9 AM • Buffet Lunch 12-1PM Afternoon Session - Registration and Buffet Lunch 12- 1PM Factory Tours Begin at 1 PM Employers Must Use New I-9 Form I n an effort to reduce errors and make it easier to complete the form on a computer, the U.S. Citizenship and Immigration Services has published a revised version of Form I-9, Employment Eligibility Verification. All employers are now required to use it. Employers must ensure that a Form I-9 is properly completed for every person they hire, both citizens and non-citizens. And while the changes make it easier to fill out the I-9 form online, a printable version is also available. M O D U L A R H O M E S Are you a builder having a problem finding skilled labor? Find the Solution at BUILDER DAY Friday, March 31 Tour the Factory and Learn About the Modular Advantage First-Hand! Shown is the Arlington, one of the model homes at the Westchester factory in Wingdale, NY., conveniently located 1/2 hour North of Danbury, CT. R.S.V.P. by March 24th to Lisa at 800 - 832-3888 ext 122, or online at westchestermodular.com 28 | HBRA of Fairfield County | MARCH 2017

Building Relationships That Last. Propane and Natural Gas Products! • We Plan It • We Install It • We Fill It • We Service It With over 400,000 gallons of storage, HOCON GAS has a reputation for delivering propane energy and industry expertise for more than 65 years! PROPANE SERVICES RESIDENTIAL • Cooking • Fireplaces • Generators • Grills • Heat • Hot Water • Pools • Tanks CUSTOMER SERVICE • Appliances • Installation • Propane Delivery • Expert Services PETE “Propane Pete” BATTAGLIO Senior Regional Manager, New Business Development Hocon Gas, Inc. • 6 Armstrong Rd., Shelton, CT 06484 Shelton: 203.925.0600 • Fax: 203.944.0300 Cell: 203.343.2199 • Email: pbattaglio@hocongas.com NORWALK 33 Rockland Rd. (800) 801-3835 (203) 853-1500 WATERBURY 20 Railroad Hill St. (800) 992-2242 (203) 754-7601 www.hocongas.com GUILFORD 736 Boston Post Rd. (877) 906-2500 (203) 458-2790 DANBURY 86 Payne Rd. (888) 977-6726 (203) 744-4000 TORRINGTON 2407 Winsted Rd. (888) 744-8686 (860) 626-0900 © Copyright Hocon • HOD#726-30 MARCH 2017 | HBRA of Fairfield County | 29 INDUSTRIAL DIVISION • Industrial Gases • Safety Products • Temporary Heat • Welding Supplies

BUILDER NEWS Paradigm shift: How universal thinking can help customers understand aging in place A ging in place has a perception problem. The number of older Americans is steadily growing as the baby boomer generation ages. Yet that group has, by and large, proven reluctant to renovate their homes to accommodate eventual changes in mobility, even though many say they want to stay in their current residence for the long-term. Budget is one concern holding them back, as is the hesitance to be proactive about meeting their own future needs. Builders and remodelers can address clients’ desire to age in place while allaying their concern over the value of the related investment by broadening its scope. By shifting the focus from getting old to getting smart, builders and remodelers interviewed by Construction Dive said they can help clients understand how accessible-design features — such as shower grab bars, wider doorways and zero-step entrances — can be useful to all ages and physical conditions while boosting the value of their home. Read More Millennials, baby boomers to drive remodeling growth B aby boomers and millennials will be driving forces behind solid growth in the remodeling market that is projected through 2025, according to a new report from the Harvard Joint Center for Housing Studies. The residential remodeling market peaked at $340 billion in 2015, and spending is expected to grow 2% annually through 2025. However, general growth in homeownership in the coming years is likely to be weighted toward groups that are known to spend less, relatively, on home upgrades: minority owners, older owners and households without children. Boomers are expected to remodel their homes for accessibility. The share of spending by the 55-plus segment is forecast to grow from 31% of total remodeling dollars in 2005 to 56% by 2025. Millennials, who are likely to purchase existing homes requiring renovations, will focus on factors like energy-efficiency, material health and home automation, affording remodelers an opportunity to explore such niches. Read More Lumber Prices Rise to Start 2017 T he price of lumber, from framing to structural panels, has increased in recent weeks with some prices rising more than 30%. Softwood lumber prices have been relatively steady since 2014. During this period, the largest one-week price increase of framing lumber (+6.8%), as measured by the Random Lengths Framing Lumber Composite Index, occurred in the middle of the recent price escalation.[1] The largest one-month swing of softwood lumber during this period was 2.9% in 2014 according to the Bureau of Labor Statistics Producer Price Index(PPI) (this index will not capture the recent monthly increases until the February data is released in mid-March).[2] Read More 30 | HBRA of Fairfield County | MARCH 2017

Amenities Help New Home Communities Stand Out A s home builders, developers, and land planners know, inviting amenities are pivotal to the success of new-home developments. Whether it’s a golf course, pool, or pickleball courts, recreational facilities are what make each community unique. Here are three projects that raise the bar on communal spaces with the use of unique gathering spaces such as a greenhouse, events lawn, and demonstration kitchen. Read More BEAUTY. ELEGANCE. STRENGTH. Our Aluminum Doors Will Surprise You. Ed’s Garage Doors offers a broad selection of aluminum doors that are the perfect complement to your home. Visit our showroom to see many exclusive aluminum doors on display, and talk with a design expert about our countless in-stock and custom options. Showroom Hours: Mon. – Fri.: 8:00 am – 5:00 pm Saturday: 9:00 am – 3:00 pm Evenings: By appointment Sunday: Closed 136 Water Street, Norwalk, CT 06854 203-847-1284 edsgaragedoors.com ® MARCH 2017 | HBRA of Fairfield County | 31

SEMINARS AND TRAINING Register Online or call the HBRA office at 203-335-7008 OSHA 10 Hour Construction Monday, May 22 & Tuesday, May 23, 2017* 8:00am-2:00pm Breakfast/Registration starts at 7:30AM Rings End Educational Facility 160 Avon Street, Stratford, CT OSHA is coming to FINE you! Get ahead of them & learn what you need to know for your business and your employees. The OSHA 10hour construction training course is designed for anyone in the construction industry. Upon completion, participants will receive an OSHA construction safety and health 10-hour course completion card from the Department of Labor. OSHA 10 cards are good for 5 years. HBRA Members: $30.00 Non-Members: $60.00 *Must attend both dates in order to receive OSHA card-per federal regulation. Continental Breakfast & Lunch included both days. Payment must be received by May 8th to reserve your spot. Walk-ins will not be accepted at this course due to limited seating. Sponsored by: 32 | HBRA of Fairfield County | MARCH 2017

MEMBER BENEFITS BUSINESSES General Motors As one of the major automotive manufacturers of the National Association of Home Builders (NAHB), we’re pleased to extend this private offer up to $250/$500/$1000* toward the purchase or lease of most new GM vehicles to association members. Just visit your local Chevrolet, Buick or GMC dealer, choose an eligible vehicle and present your NAHB Proof of Membership form. Then stack this offer with additional current incentives from the National Fleet Purchase Program and Business Choice. Available through Jan. 2, 2018. Purchase or lease an eligible new 2016 and 2017 Buick, Chevrolet or GMC model excluding Buick Lacrosse, Regal, Verano and Cascada; Chevrolet Camaro, Impala Limited, Corvette, Sonic, Spark, Spark EV, SS, Trax, Volt; all Cadillac models. NAHB Member Advantage Discounts NAHB Member Advantage gives members an easy way to reduce expenses, maximize profits and increase efficiency. Through agreements with leading national companies, NAHB offers exclusive discounts on a variety of products and services that can benefit your business, employees and family. In the past year, members have saved over $17M through Member Advantage. For the most up-to-date information about which companies are offering discounts as well as detailed information on how to access the savings, please visit www.nahb.org/ma 22% OFF monthly access fees and more NPP offers members exclusive savings on a variety of Verizon Wireless services for business. Plus, you can also share Verizon discounts with your employees. Sign up today so your business can start saving with the nation’s largest and most reliable 4G LTE network. NPP members receive 22% OFF monthly access fees for eligible members* 25% discount on select accessories Special promotions on equipment *Corporate liable lines only. $34.99 or higher, 5–line minimum, 2 corporate lines required. *Industry eligibility requirements apply. EMPLOYEES Up to 18% OFF monthly access fees As an employee of an NPP member, you and your family are eligible for an 18% employee discount on Verizon Wireless service (15% plus 3% if you enroll in paperless billing and My Verizon). Once your company has signed up for a Verizon discount, you can access discounts on non-corporate lines. See what better looks like and save with NPP. NPP members receive Up to 18% OFF monthly access fees 25% OFF select accessories Click “Activate Discount” and follow the instructions to How to Register: Visit www.mynpp.com, select Company, then Construction, then Residential. Select HB&RA - Home Builders and Remodelers Associations from the dropdown menu, complete the enrollment and START SAVING! MARCH 2017 | HBRA of Fairfield County | 33

REdefining home improvement RingsEnd.com 34 | HBRA of Fairfield County | MARCH 2017 800 390 1000

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