DECEMBER 2020 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. 2021 SHOWCASE HOME - LOT SELECTED! Windsor Creek Lot #69 in O’Fallon will be the location for our Showcase Home. The Committee was tasked to research over 70 lots submitted with the final walk thru that checked off all the boxes. Now the Committee is reviewing floor plans for the site. More on page 4 WHATS INSIDE Trivia Night Event Review The HBR Office and Zoom Rooms were filled with so much excitement for the annual Trivia Night it was hard to not get caught up in the moments. Everyone singing along with the songs shared during “finish the lyrics” round. Major uproars when someone surprising actually knew an answer. Apparently our President, Aaron Klemme, is a huge Celine Dion fan. And of course the fun wit and humor from our DJ and Emcee...how could you go wrong?!?! If you missed the event or looking for some virtual family fun over the Holiday’s check out the Trivia video starting from round 2 at this YouTube link. HBR Staff would be honored to share the rest of the program you would need. CLICK HERE TO PLAY ALONG Upcoming Year End Deadlines Dec 10 - PWB Sleigh of Spirits Raffle Dec 11 - Membership Directory Ads Dec 30 - R3 Development Career Fair CANCELLED Dec 31 - Mandatory Sexual Harassment Training Showcase Home Sponsorship Opportunities Annual Sponsorship Program 2021 Scholarship Program Sponsorship Membership Announcements NAHB News: Home Building Q3 Rebound NAHB International Builder Show X Illinois Policy Institute - Fair Tax voted down, Governor Pritzker’s new warning……. Page 1

Oh, What a Night! Thank you to everyone who participated in our Movies & Music Trivia! We were only allowed to have two teams attend in person but had many virtual teams who zoomed in to complete for cash prizes. What a fun time! And the Winners Are: FIRST PLACE = 75 Fulford Home Remodeling/ Klemme Construction/ Mark’s Appliance SECOND PLACE = 74 Illinois Title & Escrow THIRD PLACE = 74 Ambassador Floor Great Efforts from: Yaekel & Associates = 70 R.P. Lumber Co. = 70 Vogt Builders = 67 Wells Fargo = 66 BlindQuest/Remington = 56 CLICK TO PLAY ALONG Page 2

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HBR SHOWCASE HOME ANNOUNCEMENT The Showcase Home project was created with the goal to educate the public of new home construction while providing opportunities for positive public relations for the HBR members. During the different stages of the building process, the HBR will feature the progress with extensive marketing and events. Once completed, we will create a Trade Show within our Showcase Home featuring displays and highlighting the Member Support of the process. This Showcase Home will be valued between $300k-$400k and located in Windsor Creek, O’Fallon. To start this process, the Showcase Home Committee will include all HBR Members for their consideration to be part of the Showcase Home throughout the various stages of the process: • Floor Plan Design • General Contractor • Lender • Suppliers • Trade Partners Prior to completion we will host open houses and a preview party to highlight construction techniques, materials and products incorporated into the home. After completion of the home, we will host open houses for the general public to view and purchase. For more information on supporting this amazing Showcase Home, contact the HBR Office. Page 4

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MANDATORY Sexual Harassment Prevention TRAINING DEADLINE December 31, 2020 The Illinois Department of Human Rights (IDHR) released its model Sexual Harassment Prevention Training program for Illinois employers to comply with Public Act 101-0221 (commonly referred to as the Workplace Transparency Act). Under this Act, Illinois employers are required to train employees on sexual harassment prevention by December 31, 2020, and on an annual basis thereafter. This requirement applies to all employers with employees working in this State. Employers must either develop their own sexual harassment prevention training program that equals or exceeds the minimum standards for sexual harassment prevention training outlined in Section 2-109(B) of the Illinois Human Rights Act (IHRA), or they may use the model training provided by the IDHR. What Employers are Required to Provide Sexual Harassment Prevention Training to All Employees? • Every employer in the State of Illinois is required to provide employees with sexual harassment prevention training that complies with section 20198 of the Illinois Human Rights Act. • All employees regardless of their status (i.e. short-term, part-time, or intern) must be trained. • If an employer has an independent contractor working on-site with employer’s staff, the independent contractor should receive sexual harassment prevention training. Download the Model Sexual Harassment Prevention Training program in PowerPoint or PDF Format. CLICK HERE TO DOWNLOAD Record of Compliance: Employers should keep an internal record of training compliance to be made available for IDHR inspection upon request. Records that reflect compliance may include but are not limited to, a certificate of participation, a signed employee acknowledgement, or training sign-in worksheets. Page 7

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RENEWING MEMBERS ABC Supply Company - 23 years Belleville News Democrat - 43 years C.A. Jones, Inc. (2) - 2 years Carpenters’ Regional Council - 12 years Electro Door Systems, Inc. - 39 years Huntington Chase Corporation - 16 years HB&R Union Contractors Council - 6 years Madison Co. Planning & Develop. - 4 years PROFESSIONAL WOMEN IN BUILDING COUNCIL Custom Marble, Inc. First Mid Bank and Trust (2) REMODELERS COUNCIL FCB Banks First Mid Bank and Trust Jacob Sunrooms, Exteriors and Baths Light Brite Distributing, Inc. Padgett Building & Remodeling Throm Construction Company, Inc. Yaekel & Associates Insurance Services Visit our Showroom 850 South Mulberry Street Millstadt, IL 618.476.1345 www.custommmarble.net Manufacturer of the finest Cultured Marble products for over 40 years. Provider & Installer of Solid Surface, Quartz & Granite countertops. Page 9

The 2021 NAHB International Builders’ Show® (IBS) has transitioned to a virtual event. However, the exclusive IBS opportunities that attendees have come to expect from the in-person event will still exist — and even expand — to connect the home building industry together, online, during the IBS Virtual Experience (IBSx), Feb. 9-12, 2021. IBSx will showcase the must-have new products, tech and innovations that builders, remodelers and other residential construction industry pros will want to include in their upcoming projects. The latest trends, insights, tips and best practices will all be available at your fingertips — offering you everything you need to wow your customers. “Imagine having the Builders’ Show at your disposal? Literally ‘on demand’ on your laptop at home or even in your pocket on your smartphone while you’re on the go, at work or wherever,” said Duane Bickett, owner of Bickett’s Construction. “Attendees will be able to participate in education whenever it’s convenient for them. Combine that with all the demos, new product exhibits, tons of clickable features, one-on-one interactions, live sessions and more.” IBSx participants will explore real ideas and learn actionable solutions they need to be competitive and grow their business. Starting early-bird registration rates are free for NAHB members and $50 for non-members. Learn more and register today. IBSx Details IBSx will be held online, February 9-12, 2021. Our dedicated virtual team is creating a dynamic event that will deliver the same excitement and sense of discovery that you’ve come to expect from an in-person Builders’ Show. What can you expect at IBSx? • An exciting opening ceremonies with keynote speaker Mike Rowe • The NEW Start Up and Home Tech Zones • Product demos and the NEW Product Zone • Virtual tours of The New American Home and The New American Remodel • Live one-on-one meetings with top industry suppliers and service providers • Networking activities to connect with your colleagues • And for those with an All Access (Education + Expo) registration 70+ exclusive education sessions How will it work? • In late January, you’ll receive an email with your login and password to the virtual platform • You’ll log in each day to experience IBSx and interact with other attendees and exhibitors You’ll have access to the platform through March 31, 2021. Page 10

Home Building a Leading Sector in the Q3 Rebound The economy rebounded sharply during the third quarter, as GDP registered a 33.1% seasonally adjusted annual growth rate. This bounce back followed a gradual reopening of the economy in the wake of the coronavirus pandemic. Home building has undoubtedly been a bright spot for the economy during this period of economic distress. Demand for single-family housing has increased on historically low interest rates, a need for more residential space, favorable demographics for home buying, and an evolving geography of housing demand that favors low density, more affordable markets. Indeed, builder confidence reached an all-time high in October, as total single-family starts in 2020 are poised to post a notable gain. These data are consistent with the rise of the home building share of GDP (the dollar value of single-family, multifamily, and remodeling-related construction activities). This measure increased at a 59% annualized growth rate in the third quarter. And the overall housing share of GDP now stands at 15.5%. NAHB Chief Economist Robert Dietz recently provided the following housing market overview in the biweekly e-newsletter Eye on the Economy: 3 Design Trends to Fall in Love With Fabrics Materials As home buyers are looking more and more to their homes as a sanctuary, there is a trend to design with more natural and organic materials. Biophilic design and bringing in greenery with art, wall coverings, or plants into the design continues to be an important trend. And it makes sense when you consider the proven power of nature and natural elements in design. Organic, natural materials incorporated into design can reduce stress, blood pressure and anxiety, as well as enhance a sense of wellbeing. Creating a cozy, lush environment that promotes relaxing at home is something buyers will be looking for. Textural throws, layered area rugs, and chunky, oversized knit pillows are a great way to meet this expectation. Another fabric that can instantly give a cozy feel is velvet. Very few things say “cozy and safe at home” like velvet upholstered furniture. Outdoors We have discussed at length the importance of bringing the outdoors in, and to no one’s surprise, this will continue to be a trend this fall. As more buyers are spending more time in their homes, they want to know they have options for work and entertainment. They need to see that their living area is not limited to the four walls of the house. Bringing the outdoors in either literally by walls that fully retract or visually by floor to ceiling windows continues to be an important trend. Page 11

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Asking Illinoisans to pay more in taxes to receive less in services has been the trend in State Government for the past DECADE, driven by the ever-growing cost of Illinois’ worst-in-the-nation pension crisis. Illinois voters soundly rejected income tax hikes as a strategy to fix the state’s financial problems on Election Day, with nearly 55% saying “no” to the so-called “fair tax” amendment. Lawmakers should now turn their attention to reforming the state’s worst-in-the-nation pension crisis. The only realistic path to balancing Illinois’ budget while protecting programs for the state’s most vulnerable residents starts with a constitutional amendment to allow pension reform. Instead, Gov. J.B. Pritzker now warns he will look to some combination of “painful” cuts and tax hikes on everyone. All program spending, including core government services, could face up to 15% across-the-board cuts. He’s also considering supporting a hike in the flat tax by up to 20%. Pritzker should abandon both of these crude deficit-closing strategies and pursue better available alternatives. ‘Fair tax’ fallout Springfield should not ignore the clear message Illinois voters sent when they decisively rejected the statewide “fair tax” referendum: further tax hikes are the wrong strategy to balance the budget. Moreover, indiscriminate cuts to public safety and education would deprive vulnerable residents of services they rely on and threaten to further derail Illinois’ weak economic recovery from the COVID-19 recession. Instead of doubling down on the same failed strategies that gave Illinois the nation’s lowest credit rating, Springfield should send Illinois voters a pension amendment to fix the root cause of the state’s overspending. The Illinois Policy Institute’s budget plan, “Illinois Forward: A 5-year plan for balanced budgets, declining debt, and tax relief,” presents a comprehensive path to fixing the state’s finances while protecting both taxpayers and residents who rely on essential government services. Meanwhile, these tax increases have driven Illinois’ total state and local tax burden to one of the highest in the nation. Illinois Policy Institute analysis found the 2011 state income tax hike cost the state economy $55.8 billion in gross domestic product, along with 9,300 jobs over four years. Residents are voting with their feet, heading to states with lower taxes and better managed finances. Illinois has lost population for six years running, driven primarily by adults in their prime working years leaving for other states. The most common reason residents give for wanting to leave is the high tax burden, according to public opinion polling conducted for NPR and the University of Illinois-Springfield. Analysis from the Illinois Policy Institute has uncovered a weak housing market and poor job opportunities as other core causes of the exodus, which are linked to the tax burden. Pritzker must fix Illinois finances without tax hikes or borrowing Pritzker was right when he said, “Illinois’ fiscal problems haven’t gone away. We now sit at a crossroads. Our state finances still require fundamental structural change.” He articulated worthy goals for himself as governor, “I promised to be a governor who balances the budget and pays the bills that my predecessor left behind. I promised to make sure that our kids get a good education that we invest in job creation and that we build a better future for Illinois.” But the only path to fixing Illinois’ finances through structural change and achieving Pritzker’s other stated goals begins with constitutional pension reform, which Pritzker has opposed to date. Under the Taxpayer Protection Act, Illinois would initially be eligible for an estimated maximum of nearly $3.1 billion in aid. That aid should be combined with pension reform, targeted budget cuts using outcome metrics, and other structural spending measures such as reducing administrative bloat in education. For decades, Illinois has asked its taxpayers to pay more in income and property taxes to receive less in services. That was the status quo rejected by voters in the “fair tax” referendum. Rather than promising more of the same, Pritzker should commit to pension reform and structural changes that can balance Illinois’ budget while respecting taxpayers. Adam Schuster Senior Director of Budget & Tax Research Page 13

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

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