July 2018 issue www.hbaswi l .org To promote, educate and advocate for the Residential Building & Remodeling Industry; providing resources that benefit industry professionals and consumers in the communities we serve. In a landmark labor case, the court ruled that forced union fees are unconstitutional. The decision marks the first step toward worker freedom for 5.5 million government employees across the United States – including 370,000 in Illinois. A huge crowd showed up to be part of the Operation Finally Home Poggi family house dedication in Mascoutah. The ceremonies shared many special moments with recognition of those involved, prayers, blessings and heartfelt words from many close to this project. It is not every day that our industry gets to honor our hero’s with a home. Our HBA strength, quality and love was put into this home with so many members and friends that touched this family. More surprises were waiting inside the home for the Poggi family in this whirl wind day of emotions. A full pictorial of this event is throughout this issue. In a 5-4 ruling on June 27, the U.S. Supreme Court declared forced union fees violate the First Amendment rights of government workers. The case, Janus v. AFSCME, is a landmark decision. For decades, government workers in many states were forced to pay fees to government unions as a condition of employment. Under that system, it didn’t matter whether a government worker thought the union represented him or her well. It didn’t matter whether he or she liked the way the union focused on politics. Public sector employees had to pay fees to their unions or risk losing their jobs. That changes with the court’s June 27 ruling. The case, brought by Mark Janus, a child support specialist for the state of Illinois, challenged that unconstitutional scheme, arguing that forcing workers to subsidize unions through mandatory fees violates workers’ First Amendment freedom of speech. The court agreed, ruling that government unions “may no longer extract” fees from “nonconsenting employees.” To do so would violate the First Amendment. Janus was represented in court by the Illinois Policy Institute’s litigation partner, the Liberty Justice Center, as well as the National Right to Work Legal Defense Foundation. Government workers will now get to choose for themselves whether they want to financially support their unions. But it won’t happen automatically. Workers will likely need to take the affirmative step of opting out of the union in order to see their paychecks affected. More information can be found at this link to Illinois Policy Institute

The Poggi family was escorted to the homesite by the Patriot Guard who then presented colors along with the ceremonial presentation by SAFB Color Guard. Welcoming words were shared by Bob Dee Jr. - Homes by Deesign, Jerry Daugherty - Mayor of Mascoutah, Dory Nissen - CBN, Rusty Carrol - OFH & State Representative Charlie Meier. Followed by a home blessing and the Poggi Family ribbon cutting. 2


As the Poggi’s entered their new home the happy tears began to fall on everyone’s faces. They were overwhelmed to find that the entire home was fully furnished, and decorated along with another gift of food and a playground for the kids. They explored each room loving it more and more as they went on. The kids, Logan and Riley liked their rooms so much, they wouldn’t leave them to look at the rest of the house. James and Stephani were speechless when they saw their master bedroom. They were amazed at the amount of space they have in their master bathroom and how easy it would be for James to get around. Once they family made it through the whole house, James and Stephani continued to say thank you and express their gratitude to everyone who was involved in making this happen. James Poggi sat down to take in everything and relax in his new home while talking to Bob Dee Sr.. 4

Home of Brought to Mascoutah by U.S. Marine Lance Corporal James Poggi and Family This home would not be possible without the generosity of the following donors Advanta Clean All Bright Cleaning Alton Winlectric American Legion Post 1994 Ameren Illinois Archway Cooling & Heating Arrowhead Building Supply Associated Bank AUTCOhome Appliances Barcom Security BC Signs Belleville Supply Benchmark Title Building Products Cardinal Door CertainTeed Chesley Fence City of Mascoutah Code Enforcement Officials of Southern IL Crown Roofing Custom Marble Dick & Sandi Friedman DMS Contracting Drake Construction Econ-O-Johns Edgar Trim Carpentry Edwardsville Masonic Lodge #9 Glorifying Design & Staging Goley Insulation HBA Professional Women in Building Council Heartland Turf Farms Henges Interiors Home Builders Association of Greater Southwest IL Homes by Deesign 5 Howard Shless Illinois Tool Works Foundation Invelop Now - Matterport J. Decker Homes Jamie Simmons JHR Construction Landscapes Unlimited Liese Lumber Light Brite Lions Club of Mascoutah Martin Glass Marty Woodrome Mascoutah School District MBS, LLC Metro Marble & Granite Mid America Concrete Netemeyer Engineering New Tradition Homes O’Fallon Winsupply P&A Drywall Priest Landscaping Pro-Line Cleaning Red-E-Mix Roll Offs To Go Scott Credit Union Southwest IL Advancement Housing Fund State Rep. Charlie Meier Sunwise Electric & Solar Superior Home Products Swift Plumbing Veterans United VFW Riders Wells Fargo Home Mortgage Wilke Window & Door Wininger Exterior Maintenance Yaekel & Associates Insurance Services


PWB Super Powers from HBA SWIL & HBA STL united at AUTCOhome Appliances to enjoy an evening of cooking with state of the art appliances in the showroom while enjoying drinks and friendships. Ladies were split into groups to make taco salad, Mediterranean salad and smores. Once the food was prepared we all joined back together to talk about our Councils and our accomplishments over the years. 8


The Economy Through 2018: Finally Behaving Well! Despite more political uncertainty than usual emanating from Washington, the next 12 months are shaping up well. The odds of a recession remain very low – about 10% -- despite now being in the middle of the second longest economic recovery in US history. Global growth is solid, and while inflation is rising, it’s doing so slowly, giving the Fed time to raise rates at a leisurely pace and not upend the fastest economic growth our economy is about to experience since 2005. Giving the economy a strong boost is a combination of net tax cuts totaling more than $1 trillion passed in December and spending increases totaling $400 billion passed in February. Collectively, these stimuli should raise near-term GDP by half a point. As a result, the Fed is likely to raise rates at least two more times this year – each time by one-quarter point – and possibly three times. This will be done to protect the economy from overheating and proactively prevent inflation from rising much higher than 2 percent/year, the Fed’s target inflation rate. unemployment below 4 percent – and with labor force growth weak – the struggle to find workers will get worse before it gets better. More and more firms will be forced to turn away work due to a lack of skilled labor. With both U.S. population growth and immigration slowing, an advantageous solution is for firms to invest in labor-saving technology to boost output. Fortunately, due to the recent tax reform, tax treatment of purchases of plant and equipment is more favorable today than at any time in recent memory. Because of the ongoing labor shortage, skyrocketing input costs including lumber, aluminum, and rising land costs, single-family housing starts will rise by no more than 5 percent over the next 12 months and multifamily activity should remain where it is. By contrast, remodeling activity looks to grow by a strong 7.5 percent due to a combination of ever-rising home prices boosting home equity, shrinking inventory of existing houses, and limited starts, all of which are causing homeowners to remodel rather than move. As for existing sales activity, it might grow by as much as 1 or 2 percent, but not more; home prices will rise by 6.5 percent over the next year. Growth during the rest of 2018 looks to be meaningfully better than what we have experienced since the end of the Great Recession. This is due to decent global growth and passage of tax cuts and spending increases here in the US. GDP growth during the next 12 months should average 2.8 percent, up from 2.3 percent in Q1 2018. Unemployment will continue to decline from the current rate of 3.9 percent to t least 3.7 percent and perhaps as low as 3.6 percent, rates not seen in more than 50 years. Inflation, as measured by the Consumer Price Index, will rise from 2.0 percent now to 2.5 percent by year-end 2018. As for 10-year Treasury rates; by year-end expect them to be at or near 3.2 percent, up from the current 3 percent. Regrettably, the worker shortage will worsen. Employer surveys show an ever-increasing number of firms in a growing number of industries facing growing difficulties in the recruitment of skilled workers. With 10 A wildcard in all this is trade. A dissolution of the North American Free Trade Agreement (NAFTA) and a trade war with China or Europe would weaken growth – albeit not substantially – at least in the short-run. The knock-on effects such as a possible decline in consumer confidence are of more concern. Lastly, while interest rates will rise in the second half of 2018 (as they have in the first half), the increases will be measured, and the chances of a recession are very low. Elliot Eisenberg, Ph.D., President GraphsandLaughs, LLC Email: Elliot@graphsandlaughs.net His daily 70 word economics and policy blog can be seen at www.econ70.com


YTD YTD St. Clair County Jan Feb Mar 2014 2015 2016 2017 2018 34 24 33 28 15 42 32 30 44 32 27 39 32 23 36 28 = O’Fallon 16 = Shiloh 15 = Belleville 13 = Unincorporated 12 = Mascoutah 2 = Caseyville 2 = Fairview Heights 2 = Lebanon 1 = Millstadt 2015 2016 2017 2018 Totals 91 85 106 98 91 Madison County Jan Feb Mar 2014 2015 2016 2017 2018 11 11 16 10 21 36 14 19 29 11 24 28 19 20 22 Totals 38 67 62 63 61 22 = Unincorporated 12 = Troy 9 = Edwardsville 8 = Godfrey 5 = Glen Carbon 3 = Maryville 2 = Highland YTD Monroe County Jan Feb Mar 2014 2 6 14 12 8 12 8 8 8 6 11 10 6 7 6 Totals 22 28 28 27 19 10 = Columbia 5 = Unincorporated 4 = Waterloo MarketGraphics provides the HBA with these permit reports. MarketGraphics offers many other housing and subdivision analysis reports. Contact them today to see how that can be of service to you directly. Joe Zanola zanola@zanolaco.com 314.918.7200 www.zanolaco.com From the desk of: Mayor Cheryl Maguire The City of Wood River has a shovel ready housing development. What we have is Lincoln Place, where a former school was located. The land has been cleared and has infrastructure in place. This property is approved for 9 home lots. The City is willing to “gift” two lots at a time, to a builder who can erect modest 2 to 3 bedroom homes with a basement and garage. There is a packet with all the information available at City Hall—111 N. Wood River Ave., Wood River, IL 62095. We just want to see this property developed. Thank you, Mayor Cheryl Maguire 12

1237 Central Park Drive, O’Fallon FRIDAY 22 FEBRUARY 2019 SATURDAY 23 24 2pm - 7pm 10am - 6pm 11am - 4pm SUNDAY Booth space reservations are now open for HBA Members! Cruise on over to our website and pick out your space in the Interactive Floor Plan and complete the booth space contract in the Exhibitor Packet 13

HBA Director of Member Services & Events, Suzie Q, has been with the HBA for over 7 years and SO many events. Suzie will be staying home with her new baby girl, Everleigh. We are grateful for the hard work, smiles and friendship you have brought to the HBA and will miss you much! 14

Two weekends ~ Saturdays & Sundays September 22-23 & September 29-30 12pm to 4pm every day Builder Fees include open house, home envy video and listing on parade craze app 1st Home = $1,500 2nd Home = $1,000 Platinum Sponsor Gold Sponsor $2000 each Full coverage recognition in print, home envy videos, parade craze app ads, full page magazine ad, press release recognition, featured Facebook ads, HBA website hyperlinks for 10 months. $1,000 each Recognition with “shout out” in Home Envy videos (min 2), half page magazine ad and HBA website hyperlinks for 10 months. Silver Sponsor $ 500 each Recognition with half page ad in magazine and parade craze app banner ad with HBA website hyperlinks for 10 months. Event Magazine Advertising $500 full page ~ $250 half page Industry specific publication that will be featured online in several outlets and in-house at the builder homes. All ads will be in can be submitted in .jpeg or .pdf. format. Magazine & Parade Craze Ad deadline: Friday, August 24, 2018 FOR REGISTRATION DETAILS CONTACT THE HBA OFFICE (618) 343-6331 or EMAIL tbutler@hbaswil.org 15 Full Page 7.25”W x 9.75”H vertical ad ONLY , only ready-to-use ads Parade Craze App 8.5”w x 1.17’h Horizontal ad ONLY Half Page 7.25”W x 4.875”H horizontal ad ONLY 3rd Home = $500

HBAI LEGISLATIVE REPORT Here are the bills that HBAI addressed in the past 5 months on behalf of the Building Industry • HB813: Hoffman 72 Hour Minimum Notice on Shift Changes. passed out of Labor Committee, not called on House floor. • HB2771: C.Mitchell/Hutchinson HBAI NEUTRAL Requires employers to provide specified paid sick days. Construction work exempted. Bill lost on Concurrence Motion. • HB4244: Sweeney Would have allowed McHenry County to petition to dissolve its townships. never received hearing in committee. • HB4268: Thapedi/Mulroe NEUTRAL Would allow homeowners to pay subs directly and require Sworn Statement of Subs on property prior to construction. Amendment deleted direct payment to subs and requires a sworn statement, if asked, after job completion. Bill passed both Houses. • HB4324: Welch/Lightford NEUTRAL Would allow employees to place a lien on the personal property of an employer for unpaid wages & benefits. Amended to allow employee to file for investigation with the DOL. Neutral as amended, bill failed in House on Concurrence. • HB4531: Moylan Takes option of bonding for public improvements from developers and gives authority to units of local government. Defeated bill in the House 45-62. • HB4538: Hays Would have created a Natural Disaster Property Tax Deduction for homes rebuilt after natural disasters. Bill never received a hearing in committee. • HB4748 : Fortner/Rezin NEUTRAL Would have created stormwater commissions in every county. Bill amended allowing 9 new counties to have commissions thru front-door referendum. Passed both Houses. • HB4872: Lang Would have doubled interest on non-payment of work comp. payments to hospitals. Bill passed out of committee but was not called on House floor. • HB5046: Welch Would have imposed a 72 hour notification for changes in work schedule. Bill was never heard in committee. • HB5201: Ford/Castro NEUTRAL Pilot program allowing County Recorders to lift expired and invalid liens on residential property. Amendment deleting “invalid” liens placed on bill, passed both Houses. • HB5293: Costello No state permit needed if property owner acquires a federal permit for an incidental taking under the Endangered Species Act. Bill passed out of committee but was not considered on House floor. • HB5727: Walsh Would have required a backdoor referendum on annexation agreements. Bill failed in committee. 16

• SB193: Hoffman/Raul Would have taken many duties of the Dept. of Labor to the Attorney General’s Office. Bill was defeated in House on a Veto Override Motion. • SB202: Castro 72 hour notification for shift changes. Bill passed committee but was held from consideration. • SB2596: Sandoval Would have removed exemption requiring residential construction that you must use a fire sprinkler contractor to installing a fire sprinkler system. Sponsor held the bill at our request. • SB2621: Mulroe Would have extended lien notification to 90 days after complete construction for all subcontractors. Sponsor held the bill at our request. • SB2826: Althoff Would have imposed a Practice Act on Landscape Architects. Builders would need sign off on all landscaping by a licensee. Sponsor held the bill at our request. • SB2999: Van Pelt/Conyears-Ervin NEUTRAL Would have provided reimbursement of all expenses incurred by employee at workplace. Amendmended to allow employers to write expressed language in employee manual on what is reimbursable. • SB3156: Aquino/C. Mitchell Would have required all EPA investigations to be forwarded to the Attorney General. Language was amended from the bill. HBA PAC Pledge Local HBA PAC Annual Donation __$25 donation __ $50 donation __ $100 donation __ $500 Annual donation includes 1 Gov’t Official Reception ticket ($250 Local; $150 State; $100 National) __ $1,000 Annual donation Includes 2 Gov’t Official Reception tickets and 3 PAC 50/50 raffle tickets. ($500 Local; $300 State; $200 National ) __ Other amount $____________ ____________________________________________________________ Name & Company Name: We’re your watchdog and voice for the New Construction and Remodeling Industry in all our local cities and towns! Home Builders Association PAC 6100 West Main St., Maryville, IL 62062 Office: (618) 343-6331 - Fax: (618)343-6335 www.hbaswil.org ~ Email: hba@hbaswil.org 17 _____________________________________________________________ Phone# & Email: ___Amount enclosed (payable to Southwest IL HBA PAC) ___Invoice company A copy of our report is (or will be) filed with the State Board of Elections

June 2018 Renewed Members Klemme Construction Midwest Block & Brick Remodelers Council J.T. McDermott Remodeling Contractors Professional Women in Building Council PASS Security (new) June 2018 New Member Dennis Rudolphi 1690 Washington St. Carlyle, IL 62231 Phone: (618) 594-3299 Email: Mideastern@yahoo.com Website: mideasternplumbingheatingair.com NAHB Members Continue to Enroll to Receive Increased Discounts Visit www.LowesForPros.com/ NAHB and register to save 5% every day when using Lowe's credit, plus for NAHB members, Lowe's Account Receivable (LAR) and Lowe's Business Account (LBA) are both eligible to receive the additional 2% statement discount through 12/31/2018. And NAHB Members receive free delivery on purchases of $500 or more. Go to LoweForPros.com/NAHB or call 877-435-2440 for details. Some restrictions may apply. See store for details. 18

2018 HBA Home Show Corporate Sponsors OFFICERS President, Chris Matteo - Fulford Homes, LLC 1st Vice President, Beth Jacob - Jacob Family Enterprises 2nd Vice President, Aaron Klemme - Klemme Construction 2018 Home Builders Association Platinum Annual Sponsors Associate Vice President, Mindy Shafer - Wells Fargo Home Mortgage Secretary, Jerry Yaekel, Jr. - Yaekel & Associates, Inc. Treasurer, Ken Diel - Kerber, Eck & Braeckel, LLP Immediate Past President, Dave Padgett - Padgett Building & Remodeling Co., Inc. 2018 HBA Gold Annual Sponsors DIRECTORS Jason Klein - Ameren Illinois Art Stumpf- AUTCOhome Appliances Michelle Null - Benchmark Title Company Coy Mullenix - CMI Construction Joe Knox - Copious Technologies Joel Keel - Custom Floors & More Robb Treat - Fairway Independent Mortgage Corp. Mark Fulford - Fulford Construction 2018 HBA Silver Annual Sponsors 2018 HBA Bronze Annual Sponsors 19 John Snapat, CAPS, CGR - Fulford Home Remodeling Steve Macaluso - Halloran Construction Jon Edler - Henges Interiors Robert Dee Jr. - Homes by Deesign Josh McDermott - J.T. McDermott Remodeling Contractors Jason Huelsmann - New Tradition Homes Ron Padgett - Padgett Building & Remodeling Barbara Markham - RE/MAX Preferred, The Markham Network Ryan Butler - Remington Properties Jeff Schmidt - RLP Development Sue Schultz - Sandberg Phoenix & von Gontard P.C. Mike Rathgeb - Spencer Homes Mark Vogt - Vogt Builders, Inc.

6100 West Main Street Maryville, IL 62062-6688 Office (618) 343-6331 Fax: (618) 343-6335 Email: hba@hbaswil.org WWW.HBASWIL.ORG 20

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