JULY 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. 1st Place Archery Attack Padgett Building & Remodeling 1st Place Axe Throwing CMI Construction & Liese Lumber (left to right) Zec Bishop Ben Gillen Nancy Rodenmeyer Sarah Reagan (left to right) Jeff LaDriere Mike Lippert Coy Mullenix Greg Lippert WHATS INSIDE 2019 TOP SQUAD Score of 302 July 19th Axe Throwing & Archery Attack results Upcoming Event Registrations  July 19 - Herschel E. Johnson Golf Classic  Sep 20 - ParTee Golf Tournament  2020 Home Show Bow Tie Economist - MMT is Voodoo Economics New Home Permit Report New Members & Renewals $1,000 PWB Scholarship Recipients  Kelli Determan - Belleville  Claire Pohlman - Godfrey Register Today NAHB Legislative Visits in Washington D.C. Page 1

Company / Team Shooter Name 1st National Bank of Waterloo Emily Reece Mike Needles CA Jones - Team 1 Custom Marble Custom Marble Light Brite Light Brite New American Funding Laura Schmidt Matt Kraft Ryan Dale Clarence Goebel Paige Gunther Wells Fargo Home Mortgage Michelle Koetting Custom Marble Sherry West 1st National Bank of Waterloo Laura Mergelkamp Custom Marble Kathy Kunz Wells Fargo Home Mortgage Cherity Freeze Padgett Building & Remodeling Nancy Rodenmeyer Mary Ann Lopez Drake Drake Construction RP Lumber Sherwin Williams CA Jones - Team 1 CA Jones - Team 2 CA Jones - Team 1 CA Jones - Team 2 Jeff Schmidt Mark Millay Jen Schneider Megan Stout 1st National Bank of Waterloo Andrea West Wes Haring Chris Jones 1st National Bank of Waterloo Garrett Johnson Light Brite Lacy Hartlieb CA Jones - Team 1 CA Jones - Team 2 Drake Construction Brittney Ragsdale Jesse Lopez Mike Geller Score 0 0 0 0 0 0 0 0 1 2 3 3 5 7 7 8 9 10 11 13 14 15 15 17 18 18 Page 2 Company / Team Drake Construction CA Jones - Team 2 Shooter Name Score Mark Drake Jeff Wilson Padgett Building & Remodeling Zek Bishop Homes by Deesign Light Brite Heidi Dee TAMKO Building Products Sherwin Williams Shane Smothers Rocky Shemwell Jessica Bayne Wells Fargo Home Mortgage Chris Carter Yaekel & Associates Liese Lumber Drake Construction Homes by Deesign RP Lumber Jerry Yaekel Padgett Building & Remodeling Sarah Reagan Yaekel & Associates Kevin Benson Mike Lippert Rodger Riley Bob Dee Joe Knox Wells Fargo Home Mortgage Whitney Juenger RP Lumber Bobby Robinson Padgett Building & Remodeling Ben Gillen CA Jones CMI Construction Yaekel & Associates Liese Lumber Yaekel & Associates Henges Interiors RP Lumber CMI Construction Jim Lugge Greg Lippert Ron Hodgkins Jon Edler Matt Chacon Coy Mullenix David Frazier Jeff LaDriere 19 20 20 21 24 24 24 24 24 26 27 28 28 30 32 34 35 36 37 39 40 41 41 46 46 51

FRIDAY JULY 19, 2019 EVENT SPONSOR PARTICIPATION LEVELS ___ $125 each Golfer ___ $ 20 p/team Mulligans ___ $ 20 p/team Skins ___ $200 each Stationary Beverage Sponsor Be the “go to” stand for all golfers to get their staple refreshments. ___ $150 each Course Contest Sponsor We provide the game and prize, you send the talent and everyone is a winner. ___ $100 each Hole Sponsor Company name on course. Total Amount Due $__________ •1st, 2nd & 3rd place Prizes for A & B flights •Appropriate attire required: Soft Spike facility. Men collared shirts, Ladies golf sleeveless shirts permitted. •Personal coolers are strictly prohibited! No refunds or credits will be given for cancellations or no-shows after 7/12/2019 Home Builders & Remodelers Metro East Association 6100 West Main St., Maryville, IL 62062 Page 3 Please complete & Return Registration no later than July 12 ____________________________________________________ Primary Contact ____________________________________________________ Company Name ____________________________________________________ Phone # / E-Mail Golfer Name(s) _______________________________________ _______________________________________ _______________________________________ _______________________________________ METHOD OF PAYMENT: ___ Check ___ Invoice (Members ONLY) ___ Charge to Visa/Mastercard* Card# _______________________________________________ Exp Date ______ Signature_____________________________ 10am Registration · 11am Shotgun Start

BURY THE HATCHET FUN Team Scores 4 - Custom Marble 28 - 1st Nat’l Bank of Waterloo 39 - CA Jones (team 2) 39 - Light Brite 56 - NAF/SW/TAMKO 61 - Wells Fargo Home Mortgage 62 - CA Jones (team 1) 72 - Drake Construction 87 - Padgett Building & Remodeling 120 - RP Lumber 132 - Yaekel & Associates 134 - Henges Interiors / HbD 150 - CMI Construction / Liese Lumber 3rd Place - Team Yaekel Insurance with Jerry Yaekel, Kevin Benson, Ron Hodgkins & Jim Lugge 2nd Place - Team Henges with Jon Edler, Heidi Dee & Bob Dee (also included David Frazier who had already went home) Page 4

ARCHERY ATTACK MOMENTS 2nd Place (left) Team Drake Construction with Mike Geller, Mary Ann Lopez Drake, Mark Drake and Rodger Riley 3rd Place (above) Team R.P. Lumber with Joe Knox, Matt Chacon, Jeff Schmidt & Bobby Robinson Page 5

Through this award, we encourage women’s careers in the building industry, while enhancing the educational experience. The Professional Women in Building have awarded Kelli Determan $1,000 as the 2019 Scholarship recipient The Professional Women in Building have awarded Claire Pohlman $1,000 as the 2019 Scholarship recipient Claire honorably graduated Alton High School with a 4.625 GPA. During her school years Claire received the Principal’s Award, Silver Medallion Recipient, Platinum Alpha recipient and Rotary Student of the Month along with academic recognition in the National Honor Society and an Illinois State Scholar. Claire was driven towards success throughout high school leaning toward a career in the medical field. After taking higher level science and math classes such as physics and calculus her goals changed toward engineering. Kelli graduated Belleville East High School as Valedictorian, ranking first out of 561 students, with a 5.0 GPA. Among Kelli’s academics, she was First Team All-Academic in the Southwestern Conference in 2017 and 2018. She was a National Honors Society inductee in 2018 as well as MU Alpha Theta, Beta Chi Pi, Rho Kappa, English Honors and the Spanish Honors Society 2018. Kelli also receive the Outstanding Engineer Design Presentation in 2017 and the HITES12 Engineering Design Award in 2018. Kelli tutored over 50 overs including mentoring with the Big Brothers Big Sisters. Kelli helped begin a chapter of the “Summer Sack Lunch” program at her church six years ago. Kelli was also apart of the Shriners 5k Race as a committee member that helped raise approximately $20,000 for the Shriners Hospital. Kelli plans to complete her electrical engineering degree to pursue a career as a circuit designer. Kelli hopes to, through working with others, design and create projects to get electricity to consumers at a cheaper and more efficient rate. Her overall goal is to open her own engineering firm with a strong focus on promoting women engineers. During her high school years, Claire found time for many extracurricular activities including National Honor Society, Swim Team, MU Alpha Theta, Physics Club, Spanish Cub, Scholar Bowl, Ping-Pong Club and Redbird Nest. Outside of school Claire is a member of the Alton area Sierra Club where she has spent many weekends helping restore cabins in Marquette Park. After high school, Claire will attend Missouri University of Science and Technology for Engineering with plans to continue her volunteer work through participating in “Engineers Without Borders” serving underdeveloped areas by providing access to clean water, alternate power sources and safer living environments. Page 6

The HB&R is officially forming 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. • Seek funding to support a scholarship program that will be recognized by local communities for continued support of skilled workforce. • Create a website based outreach for our members to post job openings and for those seeking jobs to post their resume/interest for employment. Director of Member Services Full Time position Requirements: • High School Diploma • Proficient with Microsoft Office programs • Organizational and time management skills, with the ability to work independently • Positive attitude and strong communication skills • Event planning experience a plus Benefits: Salary based on experience, Health Insurance, 401K, paid vacation and holidays. Send resume to: hba@hbaswil.org Page 7

President Trump Signs Executive Order on Housing Affordability In a key victory for NAHB, President Trump put housing at the forefront of the national debate by signing an executive order that cites the need to cut costly regulations that are hampering the production of more affordable housing in America. NAHB Chairman Greg Ugalde attended the White House signing ceremony and provides further analysis on what the executive order means for our members in the video at the bottom of this blog post. During the Oval Office ceremony, NAHB Chair Greg Ugalde thanks President Trump for making affordability a national priority. Ugalde also issued the following official statement: “NAHB applauds President Trump for making housing a top national priority. With housing affordability near a 10-year low, the president’s executive order on this critical issue underscores that the White House is ready to take a leading role to help resolve the nation’s affordability crisis. “Given that homeownership historically has been part of the American dream and a primary source of wealth for most American households, the need to tackle ongoing affordability concerns is especially urgent. As we celebrate National Homeownership Month, we must ensure that homeownership remains in reach for younger and future generations. This can be achieved by providing access to affordable rental housing and growing the inventory of for-sale housing, particularly at the entry-level. “NAHB analysis has found that regulations account for nearly 25% of the price of building a single-family home and more than 30% of the cost of a typical multifamily development. We are pleased that the president’s executive order calls for the formation of a White House Council chaired by HUD Secretary Ben Carson that will seek to reduce regulatory barriers that are making housing more costly.” More Progress on the Affordability Front Addressing the housing affordability crisis is the association’s top priority. NAHB has met with top White House officials and leaders of Congress numerous times to discuss strategies to resolve supply-side constraints that are acting as barriers to increase the production of quality, affordable housing. During the first week in June, NAHB and HUD cosponsored the Innovative Housing Showcase that took place on the National Mall. The event provided a great opportunity to shine a spotlight on the nation’s housing affordability crisis and to seek meaningful solutions. Industry and policy experts – including Cabinet secretaries, members of Congress and NAHB leaders – participated in several panels with the goal to seek innovative solutions to make housing more affordable. Exhibitors also featured model homes and new technologies designed to increase affordability. And on June 5, nearly 700 builders went to Capitol Hill and held 300 individual meetings with their representatives and senators as part of NAHB’s 2019 Legislative Conference. Builders delivered an important message to members of Congress: There is an urgent need to implement practical solutions to ease the nation’s affordability woes and enable more families to achieve homeownership or have access to affordable rental housing. NAHB will continue to work with the White House, HUD Secretary Carson and Congress to achieve these goals. Your local NAHB Directors, Mark Vogt with Vogt Builders & Jan Johnson with Garrett E. & Herschel E. Johnson RE & Dev., along with Executive Officer, Tracy Butler and others from HBAI Leadership met with Congressman Shimkus (above) and Congressman Bost (below) at Capitol Hill to discuss our issues and share our support. Page 8

Visiting Capitol Hill is always a great honor to represent our industry. After the day with our Congressmen we had several meetings and gatherings to visit with others from throughout the Nation. Above - Tracy Butler, Jan Johnson & Jerry Geolat. Left and right - Couldn’t keep these guys away from each other: Allen Drewes, Mark Vogt & Kevin Chaffin (HBAI Leadership) with Alicia Huey future NAHB Chair. Below: (left) PWB Mixer with friends Darylene Dennon, PWB Chair, Judy Dinelle - 2018 PWB Chair & Sheronda Carr, PWB EO. (center) Treacy Duerfelt, Jan Johnson & Jerry Geolat. (right) Tracy Butler, HBR EO, with lovely ladies from PWB outside of the NAHB Gold Key event including Joyce Duerfelt, PWB Member of the Year. NAHB Sees Success in Current Code Development Cycle Thanks in large part to NAHB members and their tireless efforts to educate codes officials, none of the 26 high-priority code change proposals opposed by NAHB passed the first stage of International Code Council (ICC) I-Code development. The ICC recently held its 2019 Group B Committee Action Hearings in Albuquerque, N.M. on proposed changes to the Group B codes for the 2021 edition of the I-codes. Most importantly, Group B includes the International Energy Conservation Code (IECC) and International Residential Code (IRC). For example, among the 26 proposed changes that NAHB opposed and deemed a top priority, one included a proposal to require an electric vehicle-ready parking space, with charging infrastructure, on all new single-family homes. The ICC committees considered nearly 1,400 code change proposals. Overall, the committees supported NAHB’s position on 84% of the proposals where a position was taken. ICC is accepting public comments on the committee hearing results through July 24. NAHB plans to file at least 36 comments on proposals with unfavorable results. All submitted public comments will be heard at the public comment hearings in October. After the hearings, there will be an online vote open to all ICC governmental voters in November. Page 9

What investment will you make to protect your business this year? Your local, state and national organizations are always working to create a better business climate We’re your watchdog and voice for the Construction and Remodeling Industry in all our local cities and towns! THE MORE MEMBERS WHO SUPPORT OUR PAC, THE STRONGER HOUSING’S VOICE IS IN THE POLITICAL PROCESS AT ALL LEVELS $_____ Friend HB&R PAC Pledge Donation $250 Mayor $500 Senator $1,000 Congressman Name & Company Name: ________________________________________________________________________________ Phone# & Email: ________________________________________________________________________________________ Pledge Allocation ___Amount enclosed (payable to Metro East HB&R PAC) ___Invoice company Levels of Contribution will be recognized at our Annual Event and shared throughout the year Home Builders & Remodelers PAC 6100 West Main St., Maryville, IL 62062 Office: (618) 343-6331 Email: hba@hbaswil.org Local (__________) + State (__________) + National (__________) = Total Pledge $_____________ Sample Local $500 + State $250 + National $250 = $1,000 Total A copy of our report is (or will be) filed with the State Board of Elections Page 10

Illinois Does a Connecticut Springfield Democrats move to kill the state’s flat income tax. The Editorial Board Wall Street Journal The last state to adopt a progressive income tax was Connecticut in 1996, and we know how that turned out. Now Democrats in Illinois want to follow Connecticut down the elevator shaft with a referendum replacing the state’s flat 4.95% income tax with progressive rates they will set later. This is a classic liberal bait-and-switch—vote now on a promise to fix a fiscal mess, pay later as the fiscal mess gets worse. A supermajority of Democrats in the Illinois Legislature voted last week to place a constitutional amendment on the November 2020 ballot establishing a graduated income tax. Public unions have long wanted to enact a progressive tax to pay for increased spending and pensions, and they think the political moment has finally arrived. Democratic Gov. J.B. Pritzker says a progressive tax will hit only the wealthy, which he defines as individuals who earn more than $250,000. He also claims the middle class will get a tax cut. Don’t believe it. There aren’t enough wealthy in the state to pay for his spending promises, so eventually Democrats will come after the middle class. Under the legislature’s hypothetical rates, individuals earning between $100,000 and $250,000 would pay a top marginal rate of 4.95% while lower earners would pay between 4.75% and 4.9%. Meantime, he’s proposed increasing the top rate to 7.75% on income above $250,000 and a flat 7.99% rate on more than $750,000. The Governor and House Speaker Michael Madigan are trying to buy off middle-class voters by promising childtax credits and property tax relief. Illinois residents pay the second highest property taxes in the country after New Jersey. But Democrats will fix rates after the referendum passes and can later fiddle with them to raise more revenue. This has been the case wherever a progressive tax has been enacted. Fifteen states including Wisconsin, Minnesota and Idaho tax individuals earning more than $75,000 at rates above Illinois’s current flat tax, according to research outfit Wirepoints. Oregon taxes income between $8,900 and $125,000 at 9%. California’s 9.3% tax rate kicks in at $56,085. Then there’s Connecticut, which established a flat 4.5% income tax in 1991 that was made progressive five years later. The top rate has since increased to 6.99% on individuals making more than $500,000, and the median tax rate has increased 13%. Property taxes have also soared and the wealthy have fled to Florida, which left the state with a $3.7 billion budget deficit this year that it claims to be closing by extending the sales tax to services and re-amortizing pension debt. Illinois has no fiscal room to fail. Since 2015 Illinois’s GDP has grown a mere 1% annually, about half as fast as the U.S. and slower than Ohio (1.4%), Indiana (1.7%), Wisconsin (1.7%) and Michigan (2.1%). About 11% of Illinois residents have left since 2001, the second biggest state exodus after New York. Taxpayer flight has been accelerating as income and property taxes have risen. Chicago’s diverse economy once attracted young people from across the Midwest, but the Windy City’s population is shrinking and Illinois was one of only two states (with West Virginia) to lose millennials between 2010 and 2015. A progressive tax would be a gift to Florida and Texas, which will vote in November on a constitutional amendment to prohibit an income tax. Mr. Pritzker says a progressive tax would raise $3.4 billion annually, but this won’t cover the state’s $7 billion backlog of unpaid bills, let alone its $134 billion unfunded pension liability. Hence the legislature is also raising taxes on gasoline, cigarettes, gambling and parking, among other things. Unless voters stop it next year, the progressive tax party in Illinois is just getting started. Page 11

MODERN MONETARY THEORY IS VOODOO ECONOMICS REDUX There is currently widespread frustration with the performance of the global economy. Traditional policy approaches are not delivering the economic results they have in the past. In the US, Millennials are poorer, have lower incomes, marry less often, and have fewer children than the generations before them. In Europe, the rise of previously fringe parties is unmistakable as voters express their frustrations with the status quo at the ballot box. All this has led to the rise of Modern Monetary Theory (MMT), a set of ideas that reflect a significant and unfortunate break with previous orthodoxy. During the late 1970s, a similar economic malaise gave rise to supply-side economics popularized by Arthur Laffer. It began with the age-old observation that taxes had important incentive effects and that, in conceivable circumstances, tax cuts could raise revenue. That said, from these two well understood underpinnings, it grew into the ludicrous idea that tax cuts would always pay for themselves. In the 1980 presidential primaries, future President George H.W. Bush called this idea “voodoo economics” and in the following decades this doctrine did substantial damage to the US economy and has largely short-circuited meaningful debate about taxes. Now comes MMT, which, like supply-side economics, makes a good observation, that fiscal policy needs to be rethought in an era of low real interest rates, but then stretches it into a ludicrous claim that massive deficit spending on job guarantees can be financed by central banks without any burden on the economy. At a moment of deep economic and political frustration, some fringe wing of the out-of-power party is again offering the proverbial economic free-lunch as a politically attractive way out of a fiscal bind. Regrettably, MMT is flawed at many levels. First, it promises that by printing money the government can finance deficits at zero cost. Not true! The government in fact pays interest on money it creates as it becomes reserves held by commercial banks and the Fed pays interest on reserves. Second, contrary to MMT, governments cannot simply print money to pay bills and avoid default. Looking back at developing nations that have employed MMT demonstrates that beyond a certain point printing money leads to hyperinflation. Third, MMT conveniently assumes an economy that does not trade with other nations. Regrettably, money printing will result in a collapsing exchange rate that will in turn boost inflation, raise long-term interest rates, encourage capital flight and reduce real wages. And it is not only in emerging markets where MMT has played out badly. France in the early to mid-1980s and West Germany in the late 1980s employed what now would be called MMT but both nations had to reverse course. Separately, the UK and Italy both had to be bailed out by the IMF in the mid-1970s because of an excessive reliance on inflationary finance. Supply-side economics was an unreasonable extension of valid ideas. To that end, few support a return to the very high marginal tax rates that prevailed before the tax reform of the 1980s. Similarly, in an era of very low inflation, and of real interest rates of close to zero, we can and should carefully reconsider our traditional views of federal borrowing; they need at a minimum a careful and thoughtful rethink. That said, when something sounds too good to be true, as was the case with supply-side economics, and is the case with MMT, it’s important to make this clear to improve debate and hopefully prevent us from making another costly and unnecessary economic policy mistake. Page 12

Check out the 2020 New Home Show Floor Plan Standard Booth $800 for HBA members All inside booths are 10’ x 10’ and include rear curtain, side rails and 110v electric. Tables and chairs are not included in booth investment. Page 13

St. Clair County 2015 2016 2017 2018 2019 Madison County 2015 2016 2017 2018 2019 Monroe County 2015 2016 2017 2018 2019 YTD Jan Feb Mar 28 32 32 32 23 15 30 27 23 25 42 44 39 35 22 Apr May 38 30 38 28 25 27 40 29 29 22 Totals 150 176 165 147 117 YTD Jan Feb Mar 10 14 11 19 17 21 19 24 20 18 36 29 28 23 20 Apr May 32 30 22 25 23 38 40 21 22 21 Totals 137 132 106 109 99 YTD Jan Feb Mar 12 12 6 8 5 8 8 11 9 4 8 8 10 8 6 Apr May 11 10 9 7 5 11 18 7 7 7 Totals 50 56 43 33 27 O’Fallon 34 Mascoutah 25 Shiloh 20 Unincorporated 16 Lebanon 9 Belleville 6 New Baden 3 Troy 25 Edwardsville 20 Highland 15 Glen Carbon 14 Unincorporated 12 Godfrey 8 Maryville 3 Columbia 12 Waterloo 7 Unincorporated 8 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. Page 14

FRIDAY, SEPTEMBER 20, 2019 11a Lunch - 12p Shotgun Start Triple Lakes Golf Course Every level of talent welcome! PER GOLFER Lunch, beverages, food on the course & CASH prizes for winners ___ x $85 each Golfer ___ $20 Mulligans per team ___ $20 Poker Run per team ___ $20 Skins per team ___ $150 Beverage Sponsor ___ $100 Contest Sponsor Corporate Sponsor __________________________________________________________ Primary Contact __________________________________________________________ Company Name __________________________________________________________ Phone # Email Address TEAM/GOLFER INFORMATION ____________________________ ____________________________ Golfer #1 name Golfer #2 name METHOD OF PAYMENT: ___Check Enclosed ___Invoice Members ONLY ___Charge to Visa/Mastercard* *credit card payments will include an additional 4% convenience fee* _____________________________________________ ____________ Credit Card # Exp Date Send payments to: Home Builders & Remodelers Metro East Association, 6100 West Main St., Maryville, IL 62062 Contact us with questions: Office: (618) 343-6331 Email: hba@hbaswil.org Page 15 HBR Policy: Cancellation will be accepted 5 days prior to

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NEW MEMBERS Matthew Warren Carrollton Bank 222 E. Park St., Ste 400 Edwardsville, IL 62025 O: (618) 474-9160 C: (618) 599-6288 mattwarren@carrolltonbanking.com www.carrolltonbanking.com Cliff Sachs Sachs Doors & More LLC 515 E. Alton Street Marine, IL 62061 O: (618) 616-8295 sachsdoors@gmail.com www.sachsdoors.com Official picture of Zec Bishop with Padgett Building & Remodeling winner of the Sport Clay Shoot gun raffle sponsored by Yaekel & Associates Insurance Services, Inc. Page 17

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

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