OCTOBER 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. It was an absolute beautiful day at Joker’s Wild in Chesterfield, IL for the Annual Sport Clay Shoot! Picturesque views for the 80+ shooters and volunteers to enjoy while getting in 100 targets on the 14 stations. Also on the course was the sharp shooter contest and stands to offer refreshments and snacks. Awards and raffles were announced after the lunch provided on site. Thank you to all those that shot it up, volunteered and sponsored at our annual event! WHATS INSIDE 1st Place TOP SQUADRON Team with a score of 309 Yaekel & Associates - Clays of Glory Team 2019 TOP SQUAD Sport Clay Shoot Event Review Upcoming Event Registrations Oct 22 - Membership Event Oct 28 - FREE Lead Paint Certification Course Nov 5 - Trivia Night Membership Directory Ad Rates 2021 Annual Sponsorship Program 2021 Home Building Impact of Local Gov’t Costs Membership Renewals & Incentives Installation Banquet Sponsorship Opportunities From left to right: Scott Gower, Scott Baumann, Mark Dill, Steve Boente and Jerry Yaekel. Statewide Sexual Harassment Training NAHB Eye on Housing - New Home Sales Pace NAHB International Builder Show Illinois Policy Institute - IL House Speaker Challenged for seat Page 1
American Portfolio AUTCOhome Appliance CMI Construction Copious Technologies Fischer Lumber Company Padgett Building & Remodeling PASS Security R.P. Lumber Company Sherwin Williams SLD Enterprises Yaekel & Associates / AUTCOhome Appliance Custom Marble, Inc. 1st National Bank of Waterloo Allen Roofing & Siding Company Belleville News-Democrat BOS—Bank of Springfield Broadview Screen Co. Busey Bank CertainTeed Corporation Champion Waterproofing Crown C Supply Drake Construction First Mid Bank & Trust Garrett E & Herschel E Johnson RE Heartland Turf Farms Himstedt Roofing, Inc. Page 2 Kerber, Eck & Braeckel Martin Glass Red-E-Mix, LLC Ron Woods Excavating, Inc. Superior Home Products Wilke Window & Door Company, Inc. Yaekel & Associates, Inc.
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Eagle Flooring Billy Helitech Waterproofing & Foundation Repair Light Brite CA Jones Helitech Waterproofing & Foundation Repair Ron Woods Excavating Padgett Building & Remodeling Padgett Building & Remodeling Yaekel & Associates - Shots in the Dark Yaekel & Associates - Clays of Glory Busey Bank Light Brite CA Jones Busey Bank Eagle Flooring Yaekel & Associates - Better than Last Yaekel & Associates - Shots in the Dark Srogus Construction 10 Score of 90 - Team Yaekel & Associates Score of 86 - Team Yaekel & Associates Score of 83 - Team Srogus Construction Score of 81 - Team Padgett Building & Remodeling Score of 79 - Team Yaekel & Associates Score of 79 - Team Henges Score of 78 - Team Yaekel & Associates Score of 77 - Team Busey Bank Score of 77 - Team Henges Score of 75 - Team Yaekel & Associates Yaekel & Associates - Dilly Dilly Yaekel & Associates - Clays of Glory Padgett Building & Remodeling HBA of Illinois Srogus Construction CA Jones Yaekel & Associates - Dilly Dilly Authorized Appliance Ron Woods Excavating Helitech Waterproofing & Foundation Repair Yaekel & Associates - Dilly Dilly Light Brite CA Jones Yaekel & Associates - Shots in the Dark Henges Ron Woods Excavating Ron Woods Excavating CA Jones Srogus Construction Ron Woods Excavating Yaekel & Associates - Better than Last Busey Bank Busey Bank Henges Busey Bank Cardinal Door CA Jones Yaekel & Associates - Better than Last Yaekel & Associates - Better than Last Cardinal Door Yaekel & Associates - Shots in the Dark Ron Woods Excavating Srogus Construction Authorized Appliance EDC Drywall Srogus Construction Eagle Flooring Padgett Building & Remodeling Page 4 John Voellinger Pat Jay Toler Scott Paule Luke Yarber Don “Full Choke” Padgett Zec “no right to left” Bishop Jim Lynch Steve Boente Joe Newman Jim Mark Davitz Cale Henke Brian Rauk Scott Muehlhauser Chris Berry Harry Stewart Steve Dill Scott Bauman Gaines Smith Jason Paliatka BJ Srogus Donald Luttrell Alex Nazetta Dan Haverstick Chad Vaninger Luke Kimme Brad Schmitz Clarence Jesse Lopez Bryan Dodd Bobby Russel Mark Yarber Joe Bauman Nick Lovelace Martin Manus Dean Benson John Klopmeyer Paul Hanson Herb Frohock Greg Mueller Janice Wolters Mark McBride Chris Jones Jack Klopmeyer Derrick Klopmeyer Brian Haugen Marty McCabe Ron Woods Tom Martindale Tyler Jones Matt Mullenix Frank Srogus Michelle Rauk Sarah Reagan 75 74 73 73 72 72 71 71 70 69 66 66 65 64 64 63 62 61 60 60 60 60 59 59 58 55 55 54 53 53 52 51 51 51 50 50 49 49 48 46 45 45 43 43 42 41 40 40 39 37 32 31 31 30 28 18
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NATE MARLEN Yaekel Team Dilly Dilly Individual Score = 90 TEAM AUTHORIZED APPLIANCE & HELITECH WATERPROOFING & FOUNDATION REPAIR Team Score = 255 SARAH REAGAN Padgett Building & Remodeling Team Individual Score = 18 BJ SROGUS JANICE WOLTERS Page 6 DAN HAVERSTICK
TEAM SCORE = 255 TEAM SCORE = 253 / TEAM SCORE = 249 / TEAM SCORE = 167 TEAM SCORE = 267 / TEAM SCORE = 235 TEAM SCORE = 283 TEAM SCORE = 230 - #2 - #3 TEAM SCORE = 264 - #4 TEAM SCORE = 192 TEAM SCORE = 261 Page 7 TEAM SCORE = 261
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New Home Sales at Highest Pace since September 2006 BY DANUSHKA NANAYAKKARA-SKILLINGTON ON STEPMBER 24, 2020 New single-family home sales surged in August, as housing demand was supported by low interest rates, a renewed consumer focus on the importance of housing, and rising demand in lower-density markets like suburbs and exurbs. Census and HUD estimated new home sales in August at a 1.01 million seasonally adjusted annual pace, an approximate 4.8% gain over Consider that despite high unemployment, new home sales are estimated to be 14.9% higher for the first eight months of 2020 compared to the first eight months of 2019. Sales-adjusted inventory levels declined again, falling to a just a 3.3 months’ supply in August, the lowest in the history of the data series back to 1963. This factor points to additional construction gains ahead. The count of completed, ready-to-occupy new homes is just 54,000 homes nationwide. Total inventory declined almost 40% year-over-year, with inventory down to 282,000. revised July rate of 965,000 and is 43.2% above the August 2019 estimate of 706,000. This is the strongest seasonally adjusted annual rate since September 2006. The gains for new home sales are consistent with the NAHB/Wells Fargo HMI, which soared to an all-time high of 83 in September, demonstrating that housing is the leading sector for the economy. Moreover, sales are increasingly coming from homes that have not started construction, with that count up 69% year-over-year, not seasonally adjusted (NSA). In contrast, inventory of for-sale completed ready-to-occupy homes are down almost 33% year-over-year (NSA). These measures point to continued gains for single-family construction ahead. Eye On Housing National Association of Home Builders Discusses Economics and Housing Policy Thus far in 2020, new home sales are higher in all regions. Sales on a year-to-date basis are 12% higher in the West, 14% in the South, 24% higher in the Midwest and the Northeast. Page 10
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in St. Clair County The Impact of Home Building The Home Builders & Remodelers Association recently conducted this report thru the NAHB to capture the effect of construction activity, the ripple impact and ongoing impact that results from new homes becoming occupied. Below is a detailed breakdown of the imposed costs on local government. We will continue to share this information, in parts, for you to know that our industry has one of the biggest roles in our local economy. This information is available to our members and will be shared with our municipalities in the near future. Local Government Annual Costs • Not surprisingly, costs per housing unit varies across the major service categories. • Education accounts for the largest share of annual expenses, followed by Police Protection and Other General Government functions. • Water supply and sewerage expenses are allocated based on gallons of water consumed per day. Streets and highway expenses are based on an average of vehicle trips generated on weekdays. Education Police Protection Fire Protection Corrections Expenses PER Housing Unit $2,249 $624 $307 $123 Streets & Highways $108 Water Supply Sewerage Health Services $112 $119 $193 Recreation & Culture $294 Other General Gov’t $477 Electric Utilities Gas Utilities Public Transit $31 $4 $15 TOTAL $4,656 Page 12 One Time Capital Costs PER Housing Unit In additional to annual expenses, providing services to residents requires that local governments make capital expenditures for items such as schools, other building, equipment, roads and structures. Schools Hospitals Other Buildings Highways & Streets Conservation & Development Sewer Systems Water Supply Other structures Equipment TOTAL $4,583 $328 $2,658 $0 $130 $0 $0 $5,625 $186 $13,510
RENEWING MEMBERS Absolute Specialty Services - 15 years Brennan Building & Remodeling - 18 years Closet Factory - 11 years Eagle Flooring - 7 years Midwest Block & Brick—10 years REMODELERS COUNCIL Ambassador Floor Eagle Flooring Helitech Waterproofing & Structural Repair P&A Drywall NEW MEMBER Jason Chandler Guaranteed Rate 3981 State Route 159, Unit 2 Smithton, IL 62285 O: 618.551.5075 C: 618.698.1004 Email: Jason.chandler@rate.com Website: www.rate.com/jasonchandler Page 13
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. Download the Model Sexual Harassment Prevention Training Download the model Sexual Harassment Prevention Training program in PowerPoint format. Alternatively, you can download the training in a PDF format. Employers Required to Provide Sexual Harassment Prevention Training for 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. 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. A record of training should include the names of employees trained, the date of training, the sign-in worksheets, copies of certificates of participation issued, and a copy of all written or recorded materials that comprise the training as well as the name of the training provider, if applicable. Records may be paper based or electronic. Documentation of the training should not be sent to IDHR unless requested but should be kept on the employer's premises. Page 14
2020 WWW.HBRMEA.ORG/JOIN-HBR-TODAY Page 15
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After his implication in a bribery scandal and investigation by an Illinois House committee, Mike Madigan in January will face a Democratic challenger for House speaker. House candidates now need to say where they stand on Madigan. Illinois Speaker of the House Michael Madigan will be challenged by state Rep. Stephanie Kifowit, D-Oswego, for the speakership in January. Kifowit is one of the seven Democratic House members who asked for Madigan’s immediate resignation as speaker and chairman of the state’s Democratic Party after Madigan was implicated in a $1.3 million bribery scandal involving Commonwealth Edison. Fellow representatives are now investigating whether he should be disciplined for his actions. In a statement, Kifowit wrote, “it is clear to me that he doesn’t hold the same values that I do and falls short of what the public expects from an elected official.” Kifowit previously said she lost sleep wrestling in her mind with Madigan’s ability to lead. She wrote a letter directly to Madigan explaining how she had lost trust in him. “The actions described in the U.S. Attorney’s Deferred Prosecution Agreement by ComEd show that you have compromised the integrity of the office of Speaker of the House and undermined the public trust,” wrote Kifowit. “In addition, your involvement as ‘Public Official A’ exposes a conflict of interest as we deliberate and evaluate how the legislative process has been manipulated.” Madigan has not been charged with any crimes and maintains his innocence. ComEd, on the other hand, agreed to pay a $200 million fine, admit to seeking Madigan’s help in passing legislation worth more than $150 million to the company and continue to cooperate with the ongoing federal investigation into public corruption. The utility admitted to hiring or paying Madigan cronies to obtain his support for the legislation. Kifowit is not facing a Republican opponent in the Nov. 3 election, setting the stage for an inauguration day battle when the new General Assembly is sworn in in January. Her run for speaker now forces House Democrats to make a choice between two members of their party. They can no longer claim voting for Madigan to be the safe alternative to voting for a Republican speaker. Madigan has refused to testify before the special House investigative committee formed to see whether he took part in action unbecoming of a legislator. He called the proceedings a “political stunt” and said in a three-page letter to the committee that his job is to help Illinoisans, including with job recommendations. Gov. J.B. Pritzker reiterated his desire Sept. 30 for Madigan to answer questions in the House investigation. “I strongly believe that the speaker should take any opportunity – and this is one – to present answers to the questions that I think all of us have,” Pritzker said in a virtual press conference. Madigan’s leadership is once again facing pressure from within his own party, but the chairman of the state party is also forcing Democrats to make a difficult choice. Madigan’s control over the party’s campaign funds helps him earn support from Democrats in contested elections. He recently transferred $3.25 million from his campaign committee to the state party. Candidates risk losing critical campaign money by dropping support for the speaker. House Democrats also face questions from opponents and voters. A vote for Madigan no longer represents loyalty to the Democratic Party over a Republican speaker candidate. House candidates will need to take a stand on whether they back Madigan or are ready to oust the embattled speaker from his leadership role. Brad Weisenstein, Editor Page 17
Be concerned about the squeezing out of the independent developers and builders! Below is the daily blog from Elliot Eisenberg, the Bowtie Economist Shelter Shortage New housing, and thus existing housing, has become increasingly more expensive because of burdensome land use regulations, increasingly costly building codes, a labor shortage, and higher input costs. Another rarely mentioned reason is industry consolidation. The share of homes built by public builders has roughly doubles to 30% since 2000. as competition declines, firms gain market power and increasingly act as monopolists and reduce supply to deliberately boost profits. If you’d like to get these daily blogs from Dr. Eisenberg text BOWTIE to 22828 to subscribe Important Sales Tax information provided by our member Appliance Character In Best Buy Stores, L.P. v. Department of Revenue, 2020 IL App (1st) (August 14, 2020) Cook Co., 5th Div. the Court found that Plaintiff’s sale of built-in appliances is not exempted from sales tax despite its subsequent installation of those appliances, as the built-in appliances are not permanently affixed to and an integral part of the real estate. The Retailers’ Occupation Tax Act applies based on substance of transaction and not the taxpayer’s subjective characterization. If you’d like to get more information on this case please contact Sue Schultz at 618.624.3478 or email her at sschultz@sandbergphoenix.com NAHB Webinar: Control Your Job Costs, Control Your Success Member Cost $29.95 Wednesday, October 7, 2020 2-3 p.m. ET This webinar presents best practices for a builder to ensure that the profit they’re planning on at the start of a project is the one they’ll earn in the end. Participants in this webinar will: • Understand the importance of accurate estimating and job costing and its impact on your business growth and profitability. • Learn purchasing, provisioning, and reporting best practices to minimize job cost variances and keep control of profit on every build. • Find out how to avoid and limit unexpected vendor price increases and jobsite variances • Know how to calculate break-even volume and how even small changes in job costs will impact the number of homes they’ll need to produce annually. Page 18
In just the last year: SPRINGFIELD POLITICIANS: Imposed 21 different tax and fee hikes while rewarding themselves with a pay raise CHICAGO POLITICIANS: Hikes property taxes, restaurant taxes, parking taxes and ride sharing fees along with increased spending and demanding a bailout from State taxpayers. Our local HBR received over 40 of these yard signs to share with our members. We only have 5 left and have them lined down the driveway of our office. If you would like to have one of these signs, please drive over to the office and take one before they are gone. Page 19
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