2019 HB&R President, Beth Jacob Light Brite and Landscapes Unlimited Wilke Window & Door Yaekel & Associates CertainTeed, ABC Supply, J. Decker Homes, Custom Marble Klemme Construction, Drake Construction Kerber, Eck & Braekel, Regions Bank, BOS, Fulford Homes, J.T. McDermott Remodeling, Ambassador Flooring HBAI and NAHB C.A. Jones, New American Funding, Fence and Deck Depot, Inc. 4 Quality Installation & Home Improvement, Padgett Building & Remodeling

Remarks from 2019 HBAI State President, Mark Vogt We have our work at the state capitol cut out for us this coming year, and I assure you the board members you send to state meetings are all focused on making our building industry better! This is always challenging here in Illinois, and our best hope of accomplishing our goals is with a unified front at state from each and every one of our locals. To those locals that already send reps to state meetings, you each help make us stronger. To those locals that haven’t been participating in state meetings, I ask you sincerely, to change this and make our state board even better. We need every local active at state, and I hope to here from all of you soon! In 2019, we will likely be working to stop several new tax proposals, all of which won’t be helpful to our already shrunken home market. One of which is likely to be a service tax on remodeling work. We narrowly stopped this once before, but it’s going to be back again. This campaign, and others, will take the combined efforts from several trade organizations, and HBAI will be at the forefront of a lot of these fights. We’re a small trade organization compared to others, so our best approach is always strength in unity. We can’t outspend others, but if we can get all our HBA locals active and talking with one voice across the whole state, we can make a difference. Will you do this? Because I think we can make a difference here by truly ‘standing together’ more than we have in the past. And, I’m asking for your help in unifying all our locals into a much stronger voice in Springfield! My intent is to be the best representative of our HBAI as I can be. Myself, the other senior officers, and all other state board members are volunteers here. And we all look at this work as a service to you and our Industry, never as rulers over anyone. There’s no pay for any of us in this (sorry about that!) but there’s a lot of reward! I’ve made great friends here over the years of coming to state board meetings, and I value each of them immensely. I also hope to get to know more people from every one of the locals in Illinois. I’m aware making real and positive change in this state sounds impossible for our industry, but I’m a big believer in trying hard to do so. Sometimes, and together, that’s all the difference it takes! Here's to a better 2019 for us all! Mark Vogt; 2019 HBAI President official installed by Dean Mon, NAHB 2nd Vice Chairman of the Board with ceremonial gavel and pin from Bill Ward; HBAI Executive Vice President 5

Home Builders Recognized for Lobbying Clout “The select few on the list have demonstrated their ability to wield influence and deliver results on Capitol Hill and in the administration on behalf of clients and groups seeking a voice in Washington, ” The Hill said in a Dec. 13 story citing the top lobbyists of 2018. The prominent Capitol Hill publication listed NAHB CEO Jerry Howard among this elite group of Washington power players. Although The Hill highlighted one person from each organization it listed, Howard was quick to point out that his inclusion represents the good work of all involved in the federation. “While I am flattered to receive this recognition, the fact that NAHB is recognized as one of the most powerful trade groups is a testament to the shared efforts of our members; the NAHB staff, most notably Chief Lobbyist Jim Tobin and his government affairs team; EOs; councils and all those who work on behalf of the association to keep housing at the forefront of the national agenda,” Howard said. NAHB’s government affairs staff works closely with Capitol Hill staffers to set up meetings between NAHB member volunteers, including the Senior Officers, and their elected representatives in Congress. They also help facilitate thousands of visits to congressional offices to advance NAHB’s position on key legislation. NAHB leverages the association’s power to shine a light on key issues, get pro-housing bills introduced and passed, challenge regulations that do more harm than good, and level the playing field against powerful interests that could put struggling builders, remodelers and their suppliers out of business. The most recent example of NAHB’s clout occurred earlier this week when Howard, along with a select few members of Congress, was invited to give remarks at EPA headquarters regarding the new waters of the U.S. proposal announced by Acting EPA Administrator Andrew Wheeler. “By fighting every day for the housing industry on major issues that affect our members’ bottom line, NAHB is working tirelessly to create a better business environment for all those involved in the residential construction industry,” Howard said. 6


February 22nd, 23rd and 24th Cruise on over to our website pick out your booth space in the Interactive Floor Plan Complete the booth space contract in the Exhibitor Packet 8


The Illinois Supreme Court rendered a very important decision on Friday impacting the real estate and construction industry. In Sienna Court v. Champion Aluminum, the Court determined that the purchaser of a newly constructed home may NOT assert a claim for breach of an implied warranty of habitability against a subcontractor who took part in the construction of the home, where the subcontractor had no contractual relationship with the purchaser. This is great news for subcontractors; but makes it even more important that general contractors have a well drafted contract and obtain an informed waiver of the implied 10


EXPLAINING ILLINOIS’ SLOW HOME PRICE APPRECIATION By Drake Divounguy, Suman Chattopadhyay, Bryce Hill from Illinois Policy Institute The costs faced by homeowners can help explain outcomes in the housing market. Previous research finds a significant and negative relationship between the user cost of homeownership and housing prices. That is, when the user cost of owner-occupied housing increases, house price appreciation decreases. Changes in the real user costs of owner-occupied housing contributed heavily to the rise in house prices in 1970s and to the decline in house prices in 1980s. This report compares the change in the user cost of owner-occupied housing in Illinois and the rest of the U.S before and after the housing crisis. This model is based on the existing excerpt literature on the topic. The findings suggest that while user cost of owner-occupied housing has decreased across the country after the recession, predominately due to lower interest rates, it has remained virtually unchanged in Illinois “For every $100 in home value in Illinois, homeowners are now paying $10.15 in annual costs associated with homeownership—more than 42 other states” A LOSE—LOSE SITUATION FOR ILLINOISANS Measuring homeownership costs points to one simple face: Housing in Illinois has become less attractive relative to housing in other U.S. states. This has been driven largely by increases in income taxes and property taxes. There is no reprieve to be found for Illinoisans. With greater housing costs, it is not surprising that the post-recession growth in home values has been suppressed in Illinois relative to the rest of the U.S. This is more painful when you consider home appreciation has yet to match the pre-housing bubble period. We stress, with out property and income tax relief, housing in Illinois will continue to be less attractive, Illinois’ population is likely to continue its decline and housing appreciation can be expected to continue to lag the rest of the nation. With spending caps both proposed by the 12 The word “by” needs to be added in there

Inside had been completed gutted and cleaned with electric and plumbing rough in completed. Exterior was power washed and awning and rail were removed. Fresh new look with entire outside painted. Shutters will be returning with their new color. Next steps coming up with a lot of interior updates to follow. 13


HB&R Member, Tricia Buehne is the 2019 Jaycees National President. Tricia decided back in 2017 to run for President of JCI USA (US Jaycees). She selected Be the Change as her slogan for 2019. The reason for the slogan is; she wants everyone to Be The Change in their community, in their organization and in themselves. She wants everyone to reach their highest potential. She always quotes Gandhi – “Be the change that you wish to see in the world”. She spent much of the 2018 traveling to many states to promote the Jaycees and to campaign. The Annual JCI USA (Jaycees) meeting was held at the Double Tree by Hilton in Denver Colorado. From Sept. 27-30. On Friday, Vanessa Birchler, who is President of the Illinois Jaycees and from the New Baden Jaycees, nominated Tricia. Tricia then gave her speech and played a video. Friday night Tricia had a hospitality room where she was available to talk with voting Jaycees from all over the USA. Each state is assigned a number of votes depending on their membership numbers, for example Illinois had 43 electoral votes they can cast for the candidates (All 43 went to Tricia.). 192 were needed to win. On Saturday morning, with a vote of 249 to 133. Tricia was elected. Her opponent was Neil Fitzgerald from California. 44 Jaycees from Illinois attended the convention to support Tricia. Tricia will lead the Jaycees of the USA starting Jan. 1, 2019. This will involve many hours of meetings and traveling. She will also represent the US Jaycees at international meetings. She will attend a Presidents retreat in Puerto Rico, where she will meet other world Jaycee leaders for training and planning. Then the Conference of Americas in Mendoza, Argentina and World Congress in Tallinn, Estonia. Tricia has also made plans this October to attend the 2019 World Congress in Goa, India. Goals for 2019: To start new chapters all over the United States and to recruit and “I am excited and I can’t wait to work with the Jaycees all over the United States. I have been a member for 17 years and this definitely my biggest achievement! I am ready to motivate and inspire members and make sure we make the biggest impact in 2019. From new chapters and members, to making a difference in our communities. I know 15



6100 West Main Street Maryville, IL 62062-6688 Office (618) 343-6331 Fax: (618) 343-6335 Email: hba@hbaswil.org WWW.HBASWIL.ORG 18

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