AUGUST 2019 NEWSLETTER To promote, educate and advocate for the Residential Building & Remodeling Industry; providing resources that benefit industry professionals and consumers in the communities we serve. WHATS INSIDE Herschel E. Johnson Golf Classic review Upcoming Event Registrations  Sep 5 - Political Party Time  Sep 18 - Home Show Exhibitor Luncheon  Sep 20 - ParTee Golf Tournament  Sep 25 - Lunch with Shiloh Mayor Vernier  Oct 3 - Social Fiesta PWB Supporting the Community Membership Updates Member Discounts & Rebate Program HBR Dream Home campaign makes National News Statewide Hot Water Safety Act Illinois Homeowner Recovery Local Workforce Development Efforts Page 1

Using Drones to Drive Up Home Sales Filed in Business Management, Sales & Marketing on July 10, 2019 • Parade of homes season is the busiest time of the year for many HBAs. Yet, Tracy Butler, executive officer, Home Builders & Remodelers Metro East Association (Maryville, Ill.) noticed that staff often stood idly for hours waiting for potential home buyers to tour new homes. Butler knew there had to be a better way to increase interest in the event while decreasing the amount of staff time needed to plan and staff it. “I thought we should try creating a virtual parade of homes,” she said. Some builders use 3D walkthroughs of homes to entice potential buyers, and increasingly builders are using drones for photography, but Butler wanted to go further. “People want to see the inside and outside of a home, the neighborhood…the complete picture.” The solution? Create parade of homes videos with aerial shots and interior footage using drones. Before Butler started the process, she had to convince her board of directors. She reached out to a local drone company, which offered to produce and provide a free sample video. Once Butler showed the sample video to her board, they were receptive to changing the in-person only event into a dynamic online showcase. Keep it Short and Make it Social The first few videos the HBA produced were 1-2 minutes with specifics on how the home was constructed. Then, Butler change the approach. “Consumers don’t want to understand all of the details on how a home is built, they want to see a pretty home.” Page 2 She worked with the production company to shorten the videos to 30 seconds and only showed the unique home features. The new strategy worked. Butler advertised the videos on the local HGTV network and on social media. Paid posts on Facebook and Instagram drove up interest in new homes in her market. “It’s all about social media — especially if you want to attract a younger market. You can watch the videos anywhere, on any device and you don’t have to buy a ticket to see a home.” Leveraging drones to promote new homes proved to be a valuable member benefit and revenue generator through sponsorship. About a third of the builders featured in the videos reported sales as a direct result of the video promotion. The promotions this past spring focused on new homes. Butler hopes the next roll out of videos will feature remodelers. Butler encourages HBAs — or builders who want to expand their marketing options — to work with a professional drone company because of the flexibility the device provides to highlight home features. “If you have a cool roof line, you can showcase it with drone footage,” she suggested. For Butler, when producing videos shot by drone, the sky is the limit.

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NEW FLOOR PLAN, MUST SEE! •ACT NOW BEFORE YOUR BOOTH IS GONE •MEET THE HOME SHOW COMMITTEE FREE LUNCH PROVIDED 1237 Central Park Drive O’Fallon, IL # of reservations _______ Sandwich choice (circle one) Turkey Ham Roast Beef Vegetarian ____________________________________________ Name(s) Attending ___________________________________________________ Company Name ___________________________________________________ Phone# GREATLY CONSUMER INCREASED TRAFFIC ___________________________________________________ Home Builders & Remodelers Metro East Association · 6100 West Main St., Maryville, IL 62062 Page 5 Office: (618) 343-6331 · Fax: (618)343-6335 · Email: hba@hbaswil.org · www.HBRMEA.org

GOLF OUTING WINNERS Red-E-Mix 2nd place A Flight with 53 Longest Drive: Joe Allaria & Shelly Leffler Straightest Drive: Tim Jones Longest Putt: Ed Pendergraf Closest to the Pin: John Costello & Mindy Shafer On the Green: Tom Bredel In the Ring: Rob Verheyen Chip Shot: Jerry Gillet Marshmallow Drive: Nate Scattered Flags: Mike Greenfield, Stella Langston, Paul Seiberlich, Cody, Tony Holdener & Nate 50/50: Ron Padgett Skins: SLD Enterprises SLD Enterprises 3rd place A Flight with 55 J. Decker Construction 1st place B Flight with 63 1st National Bank of Waterloo 2nd place B Flight with 63 Negwer Materials - Team 1 3rd place B Flight with 64 Page 6

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GOLF OUTING TEAMS Arrowhead Building Supply Associated Bank BOS Crown C Supply First Mid Bank & Trust Fulford Home Remodeling Garrett E. & Herschel E. Johnson RE & Dev Halloran Construction Helitech Waterproofing & Foundation Repair J. Decker Construction - team #2 Henges Interiors Fairway Independent Mortgage, Klemme Construction & Home Advisor Page 8

GOLF OUTING TEAMS JA Painting Jacob Sunrooms, Exteriors & Baths Light Brite Midwest Block & Brick Negwer Materials - team 2 Padgett Building & Remodeling Providence Bank Sherwin Williams TAMKO Building Products & TheBANK Wells Fargo Home Mortgage Wilke Window & Door Page 9 Yaekel & Associates Insurance

GOLF OUTING SPONSORSHIP FUN Hole Sponsors 1st National Bank of Waterloo Allen Roofing & Siding Belleville News-Democrat Broadview Screen CertainTeed Corporation Crown C Supply Drake Construction Earthworks, Inc. FCB Banks Garrett E. & Herschel E. Johnson R.E & Dev Greater Gateway Association of REALTORS Heartland Turf Farms JA Painting Cooling Towel gift for all golfers Jacob Family Enterprises Kerber, Eck & Braeckel Light Brite Midwest Block & Brick Providence Bank REALTORS Association of Southwestern Illinois Red-E-Mix SCI Engineering Scott Credit Union Superior Home Products TheBANK of Edwardsville>>Busey Bank Wells Fargo Home Mortgage Wilke Window & Door Beverage Stands Ambassador Floor AUTCOhome Appliances Belfor Property Restoration Guaranteed Rate Martin Glass Company Roofers Mart SLD Enterprises Wells Fargo Home Mortgage COURSE CONTESTS/SPONSOR Sponsored by: Closest to the Pins • Wells Fargo Home Mortgage Chip Shot Contest • Belleville Supply Company Marshmallow Drive • Custom Marble Scattered Flags Contest • R.P. Lumber Longest Putt • Chesley Fence In The Ring • PWB Council Straightest Drive • Fairway Independent Mortgage Longest Drives • Vogt Builders On The Green • New American Funding Page 10

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HBR Professional Women in Building Council members joined up at St. Theresa’s in Belleville sharing a donation to help fund supplies and stuck around to help volunteer with their Summer Sack Lunch Program preparing approximately 200 lunches. The PWB heard about this program through one of our 2019 Scholarship Recipients, Kelli Determan, that inspired the PWB to support the program monetarily and in person. PWB Members present: Mary Ann Lopez Drake • Drake Construction Linette Warnecke • TheBANK of Edwardsville Sarah Reagan • Padgett Building & Remodeling Heidi Dee • Homes by Deesign Beth van Dyk • Wilson Lighting Page 12

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Legislation passed in the Illinois House of Representatives in April that would have required manufacturers to attach a temperature mixing valve to a hot water heater when installed in any new or existing home. The maximum temperature could not rise above 120 degrees Fahrenheit when the water contacts a person. HBAI was neutral on its passage and the House passed the measure on a 112-0 roll call. HB3427 was introduced by State Representative Deb Conroy (D-Villa Park) in response to an incident where a young child filled a bathtub full of hot water, got into the scalding water, and eventually died due to circumstances extenuating from this tragedy. In the Senate, HB3427 received bi-partisan sponsorship and passed out of the Senate Public Health Committee on a 10-0 vote on May 8th bill had no opposition. . The With 11 days until the end of session, Senate bill sponsor, Senator Laura Fine (D-Glenview) pushed for an amendment that broadened the mandates on plumbers and on homeowners. Senate Floor Amendment #1 would require that any change to a home’s plumbing system would trigger the requirement for a temperature mixing valve to be placed on the water heating unit. Taken to its extreme but accurate interpretation, this would mean that even the repair of a leaky faucet would obligate the homeowner, tenant, multi -family owner or manager to install a control valve on the hot water heater. Failure to do so would be a $500 per-day fine on the property owner. Flags went up on this expanded regulation, and the bill was held from further consideration in the Senate. Since the General Assembly adjournment on June 3rd their bill, proposing in “stakeholder” meetings to mandate home inspections at the time of a residential sale, and placing the requirement to install the valves in all residential real estate contracts. HBAI is opposed to these provisions, too. Leading the opposition for HB3427 is the Illinois Realtors, and the Home Builders have pledged their support to the Realtors in opposing the expanded Senate version. We hope to meet with Senator Fine soon to ask that the bill be considered as it was originally passed in the Illinois House, and that proposals to expand the measure be taken up at a later time. I will keep you updated on this summer project and will report on any movement the bill makes during the November Veto Session. Until then, if you have any further questions regarding this matter, please feel free to call or write me at billward@hbai.org, or, (217) 753-3963. , proponents for HB3427 have doubled down on Page 14

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Illinois homeowners still haven't recovered much of the home value they lost after the housing market crash. But that hasn’t stopped those homeowners’ property tax bills from climbing. Average home prices in Illinois are still 21% lower today than in 2007, according to the most recent data from the Federal Housing Finance Agency. Even though homes are worth less than they were more than a decade ago, Illinois property tax bills have jumped by 9%, after adjusting for inflation. The recovery of home prices in Illinois is more painful compared with the national recovery. Since 2007, the decline in home values remains 300% worse in Illinois than the national average – with homeowners nationwide seeing property values just 5% lower today on average than they were in 2007. Home ownership is the biggest investment most families make. But it’s not only a financial investment – it’s an investment in that community and the state of Illinois. It’s an investment fewer people are making: Outbound residents have driven net population loss five years running. And government data shows local governments in Illinois did not adequately reduce property tax levies after the recession, leaving a shrinking tax base to pick up a growing share of the burden. Home prices are tied in part to the demand of prospective homeowners. Without serious property tax relief, it is likely fewer will demand planting roots in Illinois. Orphe Divounguy Chief Economist Page 16

RENEWING MEMBERS Archway Cooling & Heating - 36 years AUTCO Home Appliances - 8 years Bank of Hillsboro - 8 years Belfor Property Restoration - 2 years Closet Factory - 10 years CMI Construction - 12 years Electro Door Systems, Inc. - 38 years Fairway Independent Mortgage Corp - 3 years First Mid Bank & Trust - 3 years Foundation Building Materials - 18 years Garrett E. & Hershcel E. Real Estate & Development - 36 years Hallmark Stone - 11 years Heneghan and Associates, P.C. - 1 year J. Decker Homes - 9 years Jacob Sunroom, Exteriors & Baths - 37 years Klein’s Brand Source - 18 years Lantz Jones - 3 years Marketplace Magazine - 2 years Martin Glass Company - 14 years McBride and Son Homes - 31 years Metro Marble & Granite - 2 years Midwest Block & Brick - 9 years Negwer Materials, Inc. - 10 years New Tradition Homes - 15 years O’Fallon electric Company - 32 years PASS Security - 27 years RCC & Faber Contracting - 5 years Sandberg Phoenix von Gontard PC - 13 years TAMKO Building Supply - 2 years TheBANK of Edwardsville >>> Busey Bank - 25 years Town and Country Bank - 1 year Professional Women in Building Council AUTCO Home Appliances Drake Construction, LLC. Fulford Homes, LLC. PASS Security The HB&R has officially formed a Work Force Committee to inspire people to pursue careers in the skilled trades and raise awareness about the opportunities in the construction industry. If you or an employee is interested in being part of this committee please contact the HB&R office at 618.343.6331 or email tbutler@hbaswil.org What the HB&R will be doing to help building the work force in our industry: • Partner with local proven programs that are in front of parents, teachers and students by creating a presentation for our members to speak at local schools about the benefits our industry offers. • Create a website based outreach for our members to post job openings and for those seeking jobs to post their resume/interest for employment. Page 17

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Page 20 6100 West Main Street Maryville, IL 62062 Phone: 618-343-6331 E-mail: tbutler@hbaswil.org Web: www.hbrmea.org

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