SEPTEMBER 2021 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. The Board meeting was held in conjunction of the ribbon cutting for the new C.A. Jones, Inc., facility in Fairview Heights. We were honored to have Mayor Patty Gregory of Belleville with her Assistant Director of Economic Development, Planning & Zoning Department to share updates on an Infill Development Program they are working on. Once the Program is finalized we will have all the info to share. WHATS INSIDE Upcoming Events Sep 17 - All Aboard with the Board Oct 7 - HBR Member Social Event Nov 4 - HBR Trivia Night Feb 25, 26, 27 2022 Home Show UPDATES Membership Directory Advertising Registration Remodeling Excellence Awards Application Annual Sponsorship Program 2022 New Home Start Report thru Jun 2021 Membership Renewal Updates 2022 Booth sales, Sponsorship & NEW Magazine Ad Rates NAHB NOW: Skilled Trades Salary Data Employee vs. Independent Contractor CDC Eviction Moratorium Illinois Policy Institute: Pritzker Tax Hike Record NAHB International Builder Show Page 1
Check out the latest videos as key trade partners share the process of Building the HBR Showcase Home GARAGE DOOR WATER/SEWER TAP We have several videos in the works that are waiting for the interview or other trades to complete their part like electric, plumbing, HVAC, etc. can be finished. Here are some other pictures of more updates We are on track to finish this home by the end of October...if all goes according to plan. Page 2
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New Home Size Increases as Demand for More Space Continues The size of new single-family homes increased in the second quarter, as the pandemic has sparked a need for more living space and people continue using their homes for more purposes, particularly teleworking. The median size of a single-family home increased to 2,297 square feet, according to data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis. Average square footage increased to 2,540. The median home size consistently rose each year from 2009 to 2015, as entry-level home construction was constrained. It then declined between 2016 and 2020, as more starter homes were developed. Home sizes are expected to increase again moving forward, given the shift in consumer preferences for more space in the postCOVID-19 environment. Home size rose from 2009 to 2015 as entry-level new construction was constrained. Home size declined between 2016 and 2020 as more starter homes were developed. Going forward we expect home size to increase again, given a shift in consumer preferences for more space due to the increased use and roles of homes (for work, for study) in the post-Covid-19 environment. Page 6
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All inside booths are 10’ x 10’ with exception of booth # 103 and include rear curtain, side rails and 110v electric. Tables and chairs are included in booth investment. $800 for HBR members $950 for non-HBR members. 2022 All Outside booths are 10’ x 10’ with 110v electric, a table and chairs included. Outside booths do not include any curtains. $250 for HBR members $350 for non-HBR members. NEW FRIDAY 25 2pm—8pm Floor Plan Facility Improvements & Management SATURDAY 26 10am—7pm SUNDAY 27 11am—4pm Page 9 200 S Belt E, Belleville IL Interactive floorplan www.hbrmea.org/ home-show FEB FEB FEB
PRITZKER’S RECORD: 24 TAX, FEE HIKES TAKING $5.24 BILLION MORE FROM ILLINOISANS Less than three years into his term, the price tag is $5.24 billion for the 24 new or increased taxes and fees Pritzker has championed. Illinoisans have watched as state taxes and fees on gas, vehicle registration, parking, marijuana, gambling, online shopping and businesses have risen rapidly under the Pritzker administration. Residents paid more than neighboring states when gas taxes were 19 cents per gallon, but then Pritzker doubled the state gas tax to 38 cents per gallon. The rate is now 39.2 cents thanks to automatic inflationary increases state leaders built into the tax hike so they never again need to take an unpopular vote to raise the gas tax. Before the hike, Illinois was No. 10 in the U.S. for gas taxes, but now it is No. 2. Similarly, Illinoisans can now expect to pay the nation’s highest base registration fee and the fifthhighest overall fee for vehicle registration. The state earned these superlatives when Pritzker increased registration costs for standard vehicles from $98 to $148 and all other large vehicles by $100 in January 2020. Pritzker passed a comparable rate hike on purchasing license plates for utility trailers, which bumped the fee to $118 from $18 in 2019. Significant resistance to the increase spurred a new measure that Pritzker just signed, reducing the fee to $36. That same measure also repealed a provision Pritzker included in his 2019 capital plan that resulted in double taxation on vehicle trade-ins worth more than $10,000, which had generated significant opposition. Pritzker justified raising taxes and fees by saying they would balance state budgets and fund his $45 billion infrastructure plan. The balance has never materialized. The $42.3 billion budget passed June 1 marks the 21st consecutive year in which Illinois lawmakers failed to balance the state budget. Despite introducing $655 million worth of new taxes and fees and receiving $8.1 billion in federal aid in 2021, the Illinois General Assembly passed a budget this year that was underfunded by at least $482 million. Adding that $655 million in new taxes this year was especially damaging because the taxes were aimed at job creators as they struggle to recover from the COVID-19 economic downturn and as Illinois has been especially slow to get people back to work. Illinois unemployment has remained at 7.1% since March as the rest of the nation quickly recovers. As disappointing as that is, unemployed Black Illinoisans have seen unemployment worsen in the past year to 15.9% – more than three times the rate of their white counterparts. Prior to the taxes enacted this year, the average Illinoisan already faced the highest total state and local tax burden in the nation. Pritzker also campaigned on a new capital plan for Illinois, originally proposing $41.5 billion for his “Rebuild Illinois” plan. The plan passed by the General Assembly spent even more, at $45 billion over six years. It was riddled with over $1.4 billion in pork projects such as pickleball courts, dog parks and funding for a shuttered, privately owned theater. Senate Democrats said $33.2 billion of the total would go to transportation infrastructure, such as roads and bridges. Lawmakers refer to those projects as “horizontal” infrastructure spending. The plan also allocated billions of dollars for new spending on buildings such as state facilities and public universities. The bulk of funding for this “vertical” infrastructure comes from expanded gambling. On the plus side, Pritzker just signed legislation to make infrastructure spending more transparent and prioritize spending based on scores for need and cost -effectiveness. It should reduce Illinois’ long tradition of lawmakers basing spending on which projects they can use as a photo op. Unfortunately, it will not apply to much of the Rebuild Illinois spending for projects that have already begun or been selected. The legislation requires a cost-benefit analysis for projects selected by the state transportation department on or after Jan. 1, 2022. A decade ago, Illinois leaders raised taxes during the recovery from the Great Recession. Tax hikes coupled with declining government services resulted in lower investment and sluggish productivity and employment growth, contributing to the state’s lackluster recovery relative to its peers. It is hard to believe Pritzker would repeat that mistake, but state leaders again raised taxes on Illinoisans still recovering from the COVID-19 pandemic. Twenty-four tax hikes in less than three years: Is Illinois any better off with $5.24 billion in new taxes? Adam Schuster & Patrick Andriesen Budget and Tax Page 10
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Every once in a while the 1st Win for the Building Industry in Court District Appellate Court (Chicago) makes a good decision: In 1400 Museum Park Condominium Ass’n v. Kenny Construction Co., 2021 IL App (1st) 192167 (August 5, 2021) the court held that a Purchaser of a newly constructed condominium unit may not pursue a claim for breach of the implied warranty of habitability against the general contractor, where there was no privity of contract between the general contractor and the purchaser. The case involved a dispute over alleged latent defects in construction of the common elements of a condominium building, in the design, materials, and construction of the building's plumbing system. While this is a very favorable decision for builders, other courts have allowed purchasers to make a claim; and the original owner can always make a claim under this implied warranty, unless it has been expressly and knowingly waived. So builders are wise to have their contracts checked by their attorney, to see that they include a knowing waiver for which consideration is paid. Sue Schultz, Counsel Page 14
RENEWING MEMBERS CMI Construction - 14 years D/Knows Exterior Construction - 2 years Fischer Lumber - 25 years Foundation Building Materials - 20 years Fusion Realty - 15 years Home Depot - 1 year Homes by Deesign - 11 years MarketPlace Magazine - 4 years Martin Glass - 16 years RCC - 7 years Sandberg Phoenix & von Gontard PC - 15 years Tyler Painting & Drywall - 3 years REMODELERS COUNCIL RENEWALS Chesley Fence & Deck CMI Construction NEW MEMBER John Marquart 14 West Broadway Trenton, IL 62293 P: 618.224-7323 C: 618.978.0940 E: jmarquart@trenton-il.com Web: www.trentonil.org Page 15
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OFFICERS P L A T I N U M President, Ryan Butler Remington Properties 1st Vice President, Mike Lippert Liese Lumber 2nd Vice President, Mike Needles C.A. Jones, Inc. Associate Vice President, Mindy Shafer Wells Fargo Home Mortgage Treasurer, Scott Gruber First Mid Bank & Trust Secretary, Jerry Yaekel Yaekel & Associates, Inc. Immediate Past President, Aaron Klemme Klemme Construction DIRECTORS G O L D S I L V E R Allen Roofing & Siding B R O N Z Page 17 Jason Klein - Ameren Illinois Barry Buchman - Arrowhead Building Supply Matt Warren - Carrollton Bank Coy Mullenix - CMI Construction Michelle Rauk - Eagle Flooring Mark Fulford - Fulford Construction John Snapat - Fulford Home Remodeling Steve Macaluso - Halloran Construction Jon Edler - Henges Interiors Robert Dee, Jr. - Homes by Deesign, Inc. Scott Blumberg - Huntington Chase Ken Diel - Kerber, Eck & Braeckel Mike Lippert - Liese Lumber Josh McDermott - J.T. McDermott Remodeling Contractors Derek Brandmeyer - Light Brite Jason Huelsmann - New Tradition Homes David Padgett - Padgett Building & Remodeling Ron Padgett - Padgett Building & Remodeling Scot Lehr - Quality Installation & Home Improvement Jeff Schmidt - RLP Development Sue Schultz - Sandberg Phoenix & von Gontard P.C. Mike Rathgeb - Spencer Homes Mark Vogt - Vogt Builders, Inc. Jim Vernier - Village of Shiloh
6100 West Main Street Maryville, IL 62062 Phone: 618-343-6331 E-mail: tbutler@hbrmea.org Web: www.hbrmea.org
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