OF THE GENERATIONS
MARCH GENERAL MEMBERSHIP MEETING
5: 30 PM | Tuesday, March 16, 2021 | Ahern’s Banquet Center, 726 Avon Belden Road, Avon Lake PANEL OF YOUNG PROFESSIONALS AND SEASONED VETERANS DISCUSS:
• What motivates and engages the generations?
• Focus on achieving our goals together and building collaboration! • Leverage the strength that each generation holds!
• Elevate the association’s potential and future success!
• WHY? Because we are #TEAMNCBIA & #INTHISTOGETHER!
• Take Time to Come; You Owe it to Your Business and the Industry! RSVP and Cancellations by March 5, 2021
Event Sponsor $225
Includes 2 tickets to event, mic time, your logo on flyer, promotion in NCBIA print & online media.
Dessert Sponsor $150
Includes 1 ticket to event, your logo on flyer, promotion in NCBIA print & online media.
EVENT SPONSORS:
Drink Sponsor $150
Includes 1 ticket to event, your logo on flyer, promotion in NCBIA print & online media.
Table Sponsor $75
DESSERT SPONSOR:
Includes company recognition on all tables
RSVP and cancellations by March 5, 2021. Company Name
DRINK SPONSOR:
Attendee(s) Name(s) Attendee(s) Name(s) Email # of member attendees @ $45 each ______
TABLE SPONSORS:
# of non-member attendees @ $60 each ______Total amount due: ______________ Please Invoice Me _______Check Enclosed _______ VISA/MC/DISC/AMEX _______
Card Number Exp. Date
CVV#
Phone#
Billing Address Authorized Signature **$5.00 Convenience Fee will be charged for all Credit Card Payments
Revised 2/24/2021
Register online at www.ncbia.com by email: judie@ncbia.com by phone: (440) 934-1090 by mail: NCBIA, 5201 Waterford Dr., Sheffield Village, OH 44035
North Coast Building Industry Association (NCBIA) BUILDER newsletter is the official newsletter of the NCBIA and is published monthly by the NCBIA. The NCBIA is an affiliate of the Ohio Home Builders Association (OHBA) & the National Association of Home Builders (NAHB).
NCBIA Office
5201 Waterford Dr. Sheffield Village, OH 44035 Phone: 440.934.1090 info@ncbia.com | www.ncbia.com
NCBIA Staff
Executive Officer Judie Docs | judie@ncbia.com Executive Assistant LaBreeska Bellan | labreeskancbia@gmail.com
Administrative Assistant Ashlyn Bellan | ashlynncbia@gmail.com Marketing Associate Maria Sabala | maria.sabala.ncbia@gmail.com
2021 NCBIA Officers President Sara Majzun-Garwood, BCT Alarm Services, Inc. Vice President Tim King, K. Hovnanian Homes - Ohio Division Associate Vice President John Toth, Floor Coverings International Treasurer Melanie Stock, Treasurer, First Federal Savings of Lorain Secretary Mike Meszes, Secretary, DRC Construction Co. Immediate Past President Jeremy Vorndran, 84 Lumber
2021 NCBIA Board of Directors
Dennis Willis, ActionCOACH TeamNEO Kelly Christy, Cleveland Custom Homes Dave Linna, Linna Homes & Remodeling Jason Rodriguez, Lorain County Joint Vocational School Mark Craig, Mark F. Craig, Esq. Jason Scott, North Star Builders Brett Adams, Sprouse Insurance Dave Weisenberger, Tusing Builders & Roofing Services
February 2021
Advertising Policy - The North Coast Building Industry Association reserves the right to reject advertising in the Builder newsletter based on content. Acceptance of advertising does not imply endorsement of the product or service advertised.
NCBIA Life Directors
Jeremy Vorndran, 84 Lumber Calvin Smith, Calvin Smith Builders Tom Caruso, Caruso’s Cabinets Bob Yost, Dale Yost Construction Liz Schneider Dollar Bank Mary H. Felton, Guardian Title Jack Kousma, Kousma Insulation Jeff Hensley, Lake Star Building & Remodeling Chris Majzun Sr., Majzun Construction Co. Chris S. Majzun Jr., Majzun Construction Co. Jim Sprague, Maloney + Novotny, LLC Randy Strauss, Strauss Construction Tom Lahetta, Tom Lahetta Builders, Inc.
2020 NAHB & OHBA Directors
These are our members who represent our local industry in Washington DC and Columbus.
Sr. NAHB Life Director
Randy Strauss, Strauss Construction
Ohio’s State Rep. to NAHB
Randy Strauss, Strauss Construction
OHBA Past Presidents Randy Strauss, 1996
2020 OHBA Trustees
Jeremy Vorndran, 84 Lumber Sara Majzun-Garwood, BCT Alarm Services, Inc. (alternate) Jason Scott, North Star Builders
OHBA Area 2 Vice-President Enzo Perfetto, Enzoco Homes
www.ncbia.com
page 3
CONTENTS
2
11
OF THE GENERATIONS
MARCH GENERAL MEMBERSHIP MEETING
5: 30 PM | Tuesday, March 16, 2021 | Ahern’s Banquet Center, 726 Avon Belden Road, Avon Lake PANEL OF YOUNG PROFESSIONALS AND SEASONED VETERANS DISCUSS:
• What motivates and engages the generations?
• Focus on achieving our goals together and building collaboration! • Leverage the strength that each generation holds!
• Elevate the association’s potential and future success!
Grand Prize: $1,500 Cash!!!
• WHY? Because we are #TEAMNCBIA & #INTHISTOGETHER!
• Take Time to Come; You Owe it to Your Business and the Industry! RSVP and Cancellations by March 5, 2021
Event Sponsor $225
Includes 2 tickets to event, mic time, your logo on flyer, promotion in NCBIA print & online media.
Dessert Sponsor $150
Includes 1 ticket to event, your logo on flyer, promotion in NCBIA print & online media.
Entering the contest is EASY!!! Just bring in a new member!
EVENT SPONSORS:
Drink Sponsor $150
For each PRIMARY member you bring in you will get 6 entries into the drawing
Includes 1 ticket to event, your logo on flyer, promotion in NCBIA print & online media.
Table Sponsor $75
Includes company recognition on all tables
RSVP and cancellations by March 5, 2021. Company Name Attendee(s) Name(s)
For each AFFILATE member you bring in you will get 1 entry into the drawing
DESSERT SPONSORS:
Winner will be drawn at our October General Membership Meeting!
DRINK SPONSOR:
Attendee(s) Name(s)
*BONUS: For every FIVE members you bring in, get a $200 VISA gift card!
Email # of member attendees @ $45 each ______ # of non-member attendees @ $60 each ______Total amount due: ______________
TABLE SPONSORS:
Includes all new members you sponsor between January 1, 2020 and October 20, 2021 by 5:00 pm
Please Invoice Me _______Check Enclosed _______ VISA/MC/DISC/AMEX _______
Card Number Exp. Date
CVV#
Phone#
Billing Address Authorized Signature **$5.00 Convenience Fee will be charged for all Credit Card Payments
Lot Available
Register online at www.ncbia.com by email: judie@ncbia.com by phone: (440) 934-1090
JON SHERER: CHAIR GLOBO GYM
MATT HERB: CHAIR AVERAGE JOE’S
by mail: NCBIA, 5201 Waterford Dr., Sheffield Village, OH 44035
Revised 1/25/2021
NCBIA Office
29
52
Table of Contents 2 - March GM Meeting Flyer: Clash of the Generations
16-17 - Single-Family Permits End on a Strong Note in
6 - Letter from the
19 - Eye on Housing: Better Credit Conditions & Rates for
President
8 - Save the Dates 8 - Member News 9 - Hot Deal Information 10 - Executive Officer’s Report 11 - Membership Drive Flyer 12-13 - NAHB Now: Top 3 Home Qualities Customer Want for Better Living at Home
13 - Updated NCBIA Menu of Services
2020
Builders at End of 2020
21 - OHBA Executive VP Column 23 - Eye on the Economy: Housing’s Outlook for 2021 24-25 - Construction Headwinds Pick Up in January 27 - Eye on the Economy: Record-High Lumber Prices
Threaten Housing’s Momentum
28 - Vacant Land Available 29 - Won’t you be our neighbor? Lot available!
14 - Builder Confidence: High 31 - Growth Ahead for New Demand Offsets Higher Costs – Single-Family Home Size?
For Now
41
Spike Update
33- Housing Affordability Supply Challenges Key Concerns in 2021
34 - NAHB Now: NAHB
Seeks Members to Participate in the Building Code Development Process
35 - NAHB Now: A Special
2-Week PPP Window for Companies with Fewer than 20 Employees
36 - Home Warranty Books 37
Applying for Membership! Welcome New Members! Thank You for Renewing! Sorry to See You Go!
38-39 - NCBIA Calendar of Events
42-43 - Legislative Review 44 - What Members are Saying
46-48 - CareWorks Comp Update
50-51 - Eye on the
Economy: Low Mortgage Rates & Desire for Space Continue to Convert Prospective Buyers into Active Buyers
52-52 - Message from
Randy Strauss re: The Lumber Crisis
LETTER FROM THE PRESIDENT
BRIDGING THE Generational Gap Together In a few weeks the NCBIA will be holding our March General Membership Meeting. This meeting will be like nothing that we have ever done before, and I am so excited to see how it turns out! As you have probably seen on the flyer, we are doing a “Clash Of The Generations” panel discussion. Now what does this mean exactly? Are we going to have to have some of our veteran members get in a cage match battle with some of our young professionals? I can think of a few veteran members that might get a kick out of that but no, that’s not at all what it means! What it means is that our panel will be made up of 3 veteran members and 3 young professionals. They will be fielding questions across a wide array of categories such as marketing, communications, crisis management, business tips and trick, and some myths and legends about the different generations! We will even open the discussion to members of the audience where you can ask your questions! You do NOT want to miss this event!
Sara Majzun-Garwood, BCT Alarm Services, Inc.
“
I want to encourage you to attend this event on Tuesday the 16th at Ahern's in Avon Lake. Come learn from the different generations we have as well as ask your questions to get a better insight on how we can all work together to make the building industry the best it can be!
“
page 6
I truly feel this event is a HUGE thing for the North Coast Building Industry Association. Not only will we get to have some great conversations and learn from each other, but we will strengthen the relationship between the young professionals and some of our more seasoned members. I grew up in this association; many of our veteran members have known me since before I could walk. I consider a lot of these members to be my advisors and mentors now. We have so many new, young professional members that have joined the association over the past couple years, so I truly hope that they can look to our veteran members for the save advice and mentorship! I am sure by now you are wondering who our “expert” panel will be made up of! Representing the veteran members, we have Chris Majzun, Jr. from Majzun Construction, Jeff Hensley from Lake Star Building & Remodeling, and John Toth from Floor Coverings International. For the young professionals, we have Maria Sabala from Genevieve Lyle Media Group, Mike Gidich from MDG Maintenance & Handyman Services, and Jon Sherer From K. Hovnanian Homes. With this great group of “expert” members, I feel that we are going to have some great discussions as well as a few laughs along the way! I want to encourage you to attend this event on Tuesday the 16th at Ahern's in Avon Lake. Come learn from the different generations we have as well as ask your questions to get a better insight on how we can all work together to make the building industry the best it can be!
www.ncbia.com
February 2021
UNLEASH YOUR TECHNOLOGY GREATNESS Technology matters to your business Start your Digital Transformation today IT INFRASTRUCTURE COPIERS & PRINTERS WIDE FORMAT PRINTING CONTENT MANAGEMENT ENERGY CONSULTING
START A CONVERSATION TODAY
Gary A. Morgan | 216-324-0327 | gmorgan@meritechinc.com Proud Supporter and Document Solutions Provider to NCBIA
Save the
Date!
March 5 - 4:00 - 6:00 PM NAHB Virtual Awards Presentations THE NATIONALS
Featuring the Best in 55+ Housing Awards NAHB Honors ~ Associates, PWB Woman, Custom, Remodeler, and Young Professionals Awards – Plus Global Innovation International Home of the Year (Sara Majzun-Garwood, our 2021 President, is a nominee for the Young Professionals Award.) REGISTRATION IS NOW OPEN
Do you have some business news to share? Business anniversaries, accomplishments, awards, publications, etc.? Send to judie@ncbia.com. We want to hear from you!
March 10
3:30 - 5:00 - Executive Committee Meeting 5:00 - 6:30 - Board of Directors Meeting
March 16
Clash of the Generations General Membership Meeting Ahern's Banquet Center Avon Lake Sponsorships Available
May 8
"Oh, What a Night!" Installation, Hall of Fame & Circle of Excellence Ahern's Banquet Center Avon Lake
Raymond W. Litten, 72, of Sheffield Lake passed away on Monday evening, February 8, 2021 at his home following a long illness. Mr. Litten was born in Lorain on January 19, 1949 and served in the U.S. Marines attaining the rank of Corporeal, earning a Purple Heart, Presidential Unit Citation, National Defense Services Medal, Vietnam Service medal and the Vietnam Campaign Medal in the Vietnam War. He worked as an Owner of See-Thru Window Cleaning beginning in 1985 until recently. He also owned and operated Uncle Ray's trains in Sheffield Lake since 2006.
*All committee meetings held via Zoom, unless otherwise noted. If you would like to participate in a committee, please email Judie Docs at judiencbia@ gmail.com.
JJ Toth rolls a perfect 300 game against Clearview for the win. JJ is the son of John and Jen Toth of Floor Coverings International and is a sophomore at Avon Lake High School. JJ is the second Avon Lake player to accomplish this since the program started 5 years ago.
Check the website at www.ncbia.com for upto-date changes, additions, and corrections to these events!
Congratulations JJ!!!
page 8
www.ncbia.com
February 2021
1. You now have the opportunity to share special discounts or “Hot Deals” with consumers who visit our website. Consumers can sign up for the Hot Deals eNewsletter to be notified each time a new Hot Deal is added to the site. Any website visitor can also search online directly for Hot Deals 24/7.
HOT DEAL! NEW WAY TO GENERATE LEADS FOR YOUR BUSINESS!! FREE FOR MEMBERS
February 2021
2. Member-to-Member deals are also available, but only to members. These are viewable ONLY in the Member login area. Want to try it out? It's FREE forever!! You can enter your own through your member login area - OR - email Maria Sabala at maria. sabala.ncbia@gmail.com for help adding your HOT DEAL.
www.ncbia.com
page 9
EXECUTIVE OFFICER’S REPORT
Be an
ENGAGED PARTNER!
The NCBIA recognizes and understands the challenges our members face, and we are working tirelessly on your behalf. Going through these unprecedented times over the past year, our number one priority remains serving as the voice of our members. You most likely joined because we offer development and connections with others in your field and to enhance your business profile. Joining the NCBIA keeps you abreast of the latest knowledge and practices locally, regionally, and nationally. Being involved and engaged also provides personal advancement. Being a member enables you to deepen your existing business relationships and forge new contacts. Be an active member; join a committee or step up and take up a more prominent role. You can make lasting ties with other professionals in your trade, sharing common interests and similar concerns. The relationships are mostly rich, and an ongoing source of ideas and inspiration. These relationships are a valuable source of information and solutions when you face a challenging situation in your business. Also, the feeling that you have a support system boosts your confidence if there is a problem. Being a partner and being engaged will help the NCBIA develop better relationships with you, but you will also interact and engage with other members. Everyone should be valued for who they are and what they bring to the table. We want you to feel like you are a part of this great association by learning and growing with other like-minded members.
“
by Judie Docs, CSP, MCSP, MIRM, CMP, CGP
If there are additional ways we can help you and your business, or if you have ideas how we can be more engaging and helpful to our members, please contact me at 440.934.1090 or page 10
“
judie@ncbia.com.
Look in your email inbox; the NCBIA staff and leadership has been relentless in researching timely, relevant information to help our members. Our E-News Bites, Builder Newsletter and other important emails contain important information to help you, and at times requests to help us as an organization as well. Refer to our 2021 Marketing Guide to see how we can help you market your company to other members as well as consumers, and in turn your investment will help us continue our work. My confidence in the value of membership is unwavering. Whether in the past or today we will remain laser-focused on meeting the needs of and advocating for members and our community. We will continue to concentrate on our mission, “The North Coast Building Industry Association is dedicated to the advancement of the building industry, its members, and the communities it serves,” and provide unparalleled support for our members and strengthen our interest now and in the future. Thank you for your commitment and partnership. Our association is strong because of you. We look forward to our continued partnership. If there are additional ways we can help you and your business, or if you have ideas how we can be more engaging and helpful to our members, please contact me at 440.934.1090 or judie@ncbia.com.
www.ncbia.com
February 2021
Grand Prize: $1,500 Cash!!! Entering the contest is EASY!!! Just bring in a new member! For each PRIMARY member you bring in you will get 6 entries into the drawing For each AFFILATE member you bring in you will get 1 entry into the drawing Winner will be drawn at our October General Membership Meeting! *BONUS: For every FIVE members you bring in, get a $200 VISA gift card! Includes all new members you sponsor between January 1, 2020 and October 20, 2021 by 5:00 pm
JON SHERER: CHAIR GLOBO GYM
MATT HERB: CHAIR AVERAGE JOE’S
NAHB NOW
TOP 3 HOME QUALITIES Customers Want for Better Living at Home
A
lthough life will settle into a new normal post-COVID, the experiences of 2020 will resonate for years to come. Consumers are realizing both the physical and mental benefits of a high-performing home, and many will seek these features in their next new home or remodel. Customers will likely focus on comfort, wellness and efficiency — highperformance trends already on the rise prior to the pandemic, according to the 2020 Green SmartMarket Brief and the 2019 What Home Buyers Really Want survey. You can translate these qualities into concrete options for home buyers and homeowners using some of the practical applications and strategies below:
Customer Want: Comfort
High-Performance Strategies
No drafts
•
Customer Want: Wellness
High-Performance Strategies
Healthy indoor environment
•
Balanced ventilation
•
Fresh air intakes
•
Kitchen range hood that vents directly outdoors
Continuous building envelope (confirm with a
•
Bathroom exhaust fans
•
HVAC filtration — highefficiency particulate air
blower door test) •
(HEPA) or high MERV rating
Weatherstripping around
•
windows and doors Consistent indoor temperatures
compound (VOC) materials
•
Smart thermostat
•
Weatherstripping around
No odors
•
Continuous building envelope (confirm with a No mold
blower door test) • •
ENERGY STAR appliances
•
Added drywall.
•
Acoustic panels and
Balanced ventilation
•
Low VOC materials
•
Bathroom exhaust fans that vent outdoors
•
Solid core doors
HVAC systems with sensors and automation
•
Moisture-resistant barrier in building envelope
sealants •
•
High R-value insulation in floors, walls, and ceilings
Quiet
Kitchen range hood that vents outdoors
windows and doors •
Low volatile organic
Natural light
•
Leak detection system
•
Double- or triple-pane window with lower solar heat gain coefficient (SHGC) and U-factors
page 12
www.ncbia.com
February 2021
Customer Want: Efficiency
High-Performance Strategies
Lower energy bills
•
Smart thermostat
•
High R-value insulation in floors, walls, and ceilings
•
Continuous building envelope (confirm with a blower door test)
Lower water bills
•
ENERGY STAR appliances
•
WaterSense-labeled fixtures
•
Minimize pipe runs (distance from water heater to fixtures)
•
Leak detection system
•
Landscaping with droughttolerant plants
•
Smart irrigation systems
You can also find tips and resources for talking to customers about these must-have qualities at Home Performance Counts, a joint initiative between NAHB and the National Association of REALTORS. Third-party green certification programs, such as the ICC700-2020 National Green Building Standard® (NGBS), can help building professionals realize their customers’ high-performance must-haves in both new homes and for remodeling projects. If you are just getting started with green certification, the NGBS Bronze cookbooks provide roadmaps to the most commonly incorporated practices in NGBS Green Certified homes. Visit nahb.org/ngbs for more information on how to certify a project to the NGBS, or purchase a hard copy or download a free pdf of the reference standard. For more information about NAHB’s sustainable and green building programs, contact Program Manager Michelle Diller. And to stay current on the high-performance residential building sector, follow NAHB’s Sustainability and Green Building team on Twitter.
HOW CAN WE HELP? North Coast Building Industry Association Menu of Additional Products and Services
Copies Black & White
Black & White
Black & White Color Color
(11”x17”)
$200 - 8+ Hours
$0.50
Blac Whi
Equipment $0.25 $0.50
Colo
Sin 2-
Raffle Boards, Drum & Equipment
Colo
$100 per day
$0.27 $0.52
Sin 2-S
Wooden Outdoor Benches
$1.00
Colo
$50 per bench, per day
Pipe & Drape Rental
De
$100 per day
Advertising & Graphic Design Services
Sin 2-
$100 - 6-8 Hours
Design Services
February 2021
Blac
$75 - 4-6 Hours
$0.10 $0.18
(8.5”x14”)
Single Sided 2-Sided
Color
$50 - 2-4 Hours
(8.5”x11”)
Single Sided 2-Sided
Sin 2-
$25 < 2 Hours
(8.5”x14”)
(11”x17”)
Blac
Board Room Rental
$0.08 $0.16
Single Sided 2-Sided
No Me
Rooms
(8.5”x11”)
Single Sided 2-Sided
H
$50 per hour
Warranty Books
Contact Maria Sabala at maria.sabala.ncbia@gmail.com
$25 each (plus shipping, if
Adv Des
$50
Con mari
applicable)
NEED SOMETHING ELSE? JUST ASK!
NE
For more information on any of these products & services, please contact the NCBIA Office at (440) 934-1090 or email judie@ncbia.com
Fo & (
www.ncbia.com
page 13
BUILDER CONFIDENCE: High Demand Offsets Higher Costs - For Now BY ROBERT DIETZ
S
trong buyer demand helped offset supply chain challenges and a surge in lumber prices as builder confidence in the market for newly built singlefamily homes inched up one point to 84 in February, according to the latest NAHB/Wells Fargo Housing Market Index (HMI). Lumber prices have been steadily rising this year and hit a record high in mid-February, adding thousands of dollars to the cost of a new home and causing some builders to abruptly halt projects at a time when inventories are already at all-time lows. However, demand conditions remain solid due to demographics, low mortgage rates and the suburban shift to lower cost markets, but we expect to see some cooling in growth rates for residential construction in 2021 due to cost factors, supply chain issues and regulatory risks. Derived from a monthly survey that NAHB has been conducting for 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
Looking at the three-month moving averages for regional HMI scores, the Northeast rose two points to 78, the Midwest fell one point to 81, the South dropped two points to 84 and the West posted a two-point loss to 93. The HMI tables can be found at nahb.org/hmi.
The HMI index gauging current sales conditions held steady at 90, while the component measuring sales expectations in the next six months fell three points to 80. The gauge charting traffic of prospective buyers rose four points to 72.
page 14
www.ncbia.com
February 2021
Free Member Benefit of Ohio HBA www.OhioHBArebates.com
SINGLE-FAMILY PERMITS End on a Strong Note in 2020
F
BY DANUSHKA NANAYAKKARA-SKILLINGTON
or 2020, the total number of single-family permits issued yearto-date (YTD) reached 977,863 nationwide. On a year-over-year (YoY) basis, this is a 14.5% increase over the December 2019 level of 854,158. Year-to-date ending in December, single-family permits reported increases in all four regions. The South reported the strongest increase by 16.9%, followed by the Midwest (+13.1%), the Northeast (+11.6%), and the West (10.5%). However, multifamily permits continued to underperform compared to December 2019, recording declines in all four regions. The Northeast region had the steepest decline in multifamily (-11.1%), followed by the South (-9.2%), West (-8.2%), and the Midwest (-1.2%). Between December 2019 YTD and December 2020 YTD, 45 states saw growth in single-family permits issued while five states and the District of Columbia registered a decline. Vermont recorded the highest growth rate during this time at 45.7% from 882 to 1,285, while singlefamily permits in the District of Columbia declined by 17.3%, from 168 in 2019 to 139 in 2020. The 10 states issuing the highest number of single-family permits combined accounted for 61.5% of the total single-family permits issued.
page 16
www.ncbia.com
February 2021
Year-to-date, ending in December 2020, the total number of multifamily permits issued nationwide reached 473,716. This is 8.2% lower than its level over the year 2019, 516,189. Between December 2019 YTD and December 2020 YTD, 16 states and the District of Columbia recorded growth while 34 states recorded a decline in multifamily permits. South Dakota led the way with a sharp rise (124.2%) in multifamily permits from 1,267 to 2,841, while Kentucky had the largest decline of 51.9% from 4,881 to 2,348. The 10 states issuing the highest number of multifamily permits combined accounted for 63.0% of the multifamily permits issued.
At the local level, below are top 10 metro areas that issued the highest number of single-family permits. Metropolitan Statistical Area
Single-family Permits: Dec (Units #YTD, NSA)
Houston-The Woodlands-Sugar Land, TX
48,208
Dallas-Fort Worth-Arlington, TX
43,884
Phoenix-Mesa-Scottsdale, AZ
31,724
Atlanta-Sandy Springs-Roswell, GA
28,057
Austin-Round Rock, TX
21,653
Charlotte-Concord-Gastonia, NC-SC
17,807
Tampa-St. Petersburg-Clearwater, FL
16,028
Orlando-Kissimmee-Sanford, FL
15,523
Nashville-Davidson-Murfreesboro-Franklin, TN
14,125
Washington-Arlington-Alexandria, DC-VA-MD-WV
13,594
For multifamily permits, below are the top 10 local areas that issued the highest number of permits: Metropolitan Statistical Area
Multifamily Permits: Dec (Units #YTD, NSA)
New York-Newark-Jersey City, NY-NJ-PA
42,739
Houston-The Woodlands-Sugar Land, TX
20,207
Austin-Round Rock, TX
19,222
Los Angeles-Long Beach-Anaheim, CA
17,494
Dallas-Fort Worth-Arlington, TX
16,178
Phoenix-Mesa-Scottsdale, AZ
14,894
Seattle-Tacoma-Bellevue, WA
14,752
Miami-Fort Lauderdale-West Palm Beach, FL
14,034
Minneapolis-St. Paul-Bloomington, MN-WI
11,515
Nashville-Davidson–Murfreesboro–Franklin, TN
11,404
February 2021
www.ncbia.com
page 17
EYE ON HOUSING
BETTER CREDIT CONDITIONS & Rates for Builders at End of 2020
W
BY PAUL EMRATH
hile home buyers were benefitting from low mortgage rates at the end of 2020, builders and developers were also experiencing lower interest rates and improved credit conditions, according to NAHB’s survey on financing for Acquisition, Development and Construction (AD&C). The net tightening index derived from the NAHB survey was -17.0 in the fourth quarter of 2020, compared to -3.3 in the third quarter of 2020. The index is constructed so that positive numbers indicate tightening of AD&C credit, negative numbers easing. Meanwhile, a similar net tightening index from the Federal Reserve’s Senior Loan Officer Opinion Survey remained positive but declined somewhat, from 56.7 in the third quarter of 2020 to 26.1 in the final quarter of 2020. The Fed survey thus continues to show tightening, while the NAHB survey has now shown two consecutive quarters of easing credit conditions. Both series, however, have been trending downward over the past two quarters. Also in the fourth quarter of 2020, the average effective rate (based on rate of return to the lender over the assumed life of the loan taking both the contract interest rate and initial fee into account) remained the same at 7.27 percent on loans for land acquisition, but decreased from 7.83 to 7.40 percent on loans for land development, from 8.76 to 7.87 percent on loans for speculative single-family construction, and from 9.25 to 8.73 percent on loans for pre-sold single-family construction. The higher effective rate on pre-sold relative to spec single-family construction loans is an atypical situation and probably best regarded as a statistical anomaly. An increase in effective rates may be due either to an increase in the contract interest rate on the outstanding loan balance, or in the initial fee charged on the loan commitment. In the fourth quarter, contract rates consistently declined across the full spectrum of AD&C loans, while the results on initial points were mixed. The average contract interest rate decreased from 5.45 to 4.75 percent on loans for land acquisition, from 5.07 to 4.59 percent on loans for land development, from 5.12 to 4.65 percent on loans for speculative single-family construction, and from 4.74 to 4.68 percent on loans for pre-sold single-family construction. Meanwhile initial points went from 0.83 in the third quarter of 2020 to 1.27 percent in the fourth quarter 2020 on loans for land acquisition, from 0.80 to 1.04 percent on loans for land development, from 0.91 to 0.88 percent on loans for speculative single-family construction, and from 0.91 to 0.79 percent on loans for pre-sold single-family construction.
February 2021
www.ncbia.com
page 19
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•
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• •
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OHBA EXECUTIVE VP COLUMN
OHBA Update Hopefully the month of February will mark the end to all the political controversy in Washington DC and the beginning of COVID19 recovery. Both seem to impact lives, routines and to some degree mental health. There is just so much for us to process considering the well -being of our government, the economy and, moreover, the health of our families. Without question, those factors impact the decisions we make. Fortunately, construction remains a bright spot. The interest rate scenario could not be much better. From that perspective, we are doing great. Politically, all builders and developers must keep a close eye on what occurs in Washington DC and what is produced in the nation’s capital. The majority party has not had complete control for some time so they will rush to attain long held goals remembering that political power can be fleeting. Statewide not much changed. Many familiar faces continue to occupy most of state government. However, with national political control issues settled we are now in a new election cycle for all the main statewide offices. With so much available, many interested in public service start to weigh viability of entering a race. This presents challenges as attention gets diverted when viewing a future campaign possibility. This is the arena OHBA is most involved with. We are reaching out to all the powers that be advocating on your behalf. What we do and say is determined by our officers. Our organizational meeting for the 2021 year is next month. At that meeting the trustees of OHBA are seated as they begin their year of oversight of the association. We will also review some of the expected regulatory topics that will be addressed. All members are welcome to attend. If you would like to attend, call us at (800)282-3403 ext. 1 and we will get you registered.
Mardy Patel Executive Assistant Ohio Home Builders Association Direct Dial- 614/228-6648 Toll Free- 800/282-3403 ext. 1
“
by Vincent J. Squillace, CAE, OHBA Exec. VP
What we do and say is determined by our officers. Our organizational meeting for the 2021 year is next month. At that meeting the trustees of OHBA are seated as they begin their year of oversight of the association. We will also review some of the expected regulatory topics that will be addressed. All members are welcome to attend.
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February 2021
www.ncbia.com
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11/10/17 12:32 PM
EYE ON THE ECONOMY
HOUSING'S OUTLOOK for 2021
BY ROBERT DIETZ
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ingle-family builder sentiment fell back to a level of 86 in December, according to the NAHB/Wells Fargo Housing Market Index (HMI), after achieving an all-time high of 90 in November. The dip was due to growing concerns over housing affordability in 2021. However, the December measure was still the second highest on record. Supply-side pressures, such as resurgent lumber prices, limited lot supplies, supply-chain issues, and a persistent skilled labor deficit foreshadow higher costs and longer build times heading into next year. Moreover, on the demand side of the housing market, limited inventories of single-family homes have generated strong price gains in 2020. The deployment of a vaccine, while representing good news for the overall economy, will place upward pressure on interest rates. In turn, the combination of higher prices and rising rates will price some households out of the housing market next year. The NAHB forecast is for ongoing gains for single-family construction in 2021, though at a slower growth rate than in 2020. Remodeling will remain strong as people continue to upgrade existing homes. The multifamily construction market will experience weakness as rent growth slows and vacancy rates rise. However, the development market should stabilize by 2022. Together, residential construction will remain a leading element of the recovering economy, as illustrated with recent labor market data: Residential construction added 15,400 net jobs in November and was one of only a few sectors of the economy to post a year-over-year jobs gain (26,000). While the HMI fell back, the outlook for housing remains positive, as the overall economy is expected to record a solid gain for GDP growth in 2021. NAHB anticipates GDP growth to accelerate in the second half of the year, after a majority of the U.S. population has been vaccinated. This process will be the most important element of 2021, as it will allow hard-hit sectors in the service industries to begin to recover and diminish shutdown risks harming small businesses. A growing economy will be good for housing, but industry stakeholders should be aware it could also result in higher interest rates that could act as a headwind for more housing growth.
February 2021
www.ncbia.com
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CONSTRUCTION HEADWINDS Pick Up in January
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BY ROBERT DIETZ
ousing production softened in January as rising lumber prices continue to affect the housing industry. Overall housing starts decreased 6% percent to a seasonally adjusted annual rate of 1.58 million units, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The January reading of 1.58 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 12.2 percent to a 1.16 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, increased 17.1 percent to a 418,000 pace, well ahead of the NAHB forecast. Despite ongoing solid homebuyer traffic, the weakness in housing starts in January is consistent with recent softening of the NAHB/Wells Fargo Housing Market Index (HMI). Builders report concerns over increasing lumber and other construction costs and delays in obtaining building materials. Rising interest rates will also erode housing affordability in 2021, as inventories of existing homes remain low. Builders also reporting growing concerns about a more challenging regulatory environment that could limit land development volume. The NAHB forecast includes some weakening for single-family home building at the start of 2021, with a return to the long-run post-Great Recession trend as the year progresses. It is also worth noting that the number of single-family homes permitted but not started construction jumped to 114,000 units in January. This is 9.6 percent higher than December and 28.1 percent higher than a year ago, as building material cost increases and delays slow some home building.
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www.ncbia.com
February 2021
As an indicator of the economic impact of housing, there are now 620,000 single-family homes under construction. This is 16.1% higher than a year ago. There are currently 660,000 apartments under construction, off a post-Great Recession high mark set in August (683,000). On a regional basis compared to the previous month, combined single-family and multifamily starts are 2.3 percent higher in the Northeast, 12.3 percent lower in the Midwest, 2.5 percent lower in the South and 11.4 percent lower in the West. As a sign of solid housing demand, overall permits increased 10.4 percent to a 1.88-million-unit annualized rate in January. Single-family permits increased 3.8 percent to a 1.27-million-unit rate. Multifamily permits increased 27.2 percent to a 612,000 pace. Looking at regional permit data compared to the previous month, permits are 39.3 percent higher in the Northeast, 0.8 percent lower in the Midwest, 8.3 percent higher in the South and 11.7 percent higher in the West. For the volatile apartment development data, multifamily starts (2+ unit production) posted an increase of 17.1 percent in January to a strong 418,000 annual rate compared to the previous month. On a year-over-year basis, multifamily unit production is down 33.4 percent. Multifamily permitting surged in January, responded to a declining unemployment rate and improved vaccination. The January permitting rate of 612,000 on an annualized basis was the highest in the post-Great Recession period and 9.5% higher than a year ago. This multifamily development strength is well above the NAHB 2021 apartment forecast.
February 2021
www.ncbia.com
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EYE ON THE ECONOMY
RECORD-HIGH LUMBER
Prices Threaten Housing's Momentum BY ROBERT DIETZ
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fumber prices reached a new high last week as housing demand remains solid amid low mortgage rates, favorable demographics and a geographic shift in housing demand to lower-density, lower-cost markets. However, recent readings of the NAHB/Wells Fargo Housing Market Index (HMI) indicate the strong momentum for housing demand is slowing. Although February’s HMI ticked up from the previous month to a level of 84, this gain followed two months of declines after the index showed builder optimism at an all-time high in November. Given the recent strength for home construction, supply-chain limitations are a critical element of the 2021 outlook. Lumber prices are up more than 70% since mid-November, and 96% of builders are reporting shortages and delays for lumber and other building materials at the start of 2021. While there is some room for new home price growth, particularly relative to the strong gains for existing homes over the last year, prices cannot outpace household incomes indefinitely. This is particularly true as interest rates increase. For example, the 10-year Treasury rate is now above 1.2% as markets expect a faster pace of reopening due to declining virus case counts and increasing vaccination rates. Overall, housing affordability conditions at the end of 2020 were flat, per the NAHB Housing Opportunity Index. However, the long-run trend has been declining affordability, putting additional households at risk of becoming priced out of the market. Because of these cost and supply-side challenges, and a historically low inventory of existing homes for sale, prospective home buyers have growing reasons to be frustrated with their home searches. Indeed, the NAHB Housing Trends Report at the end of 2020 found that the share of prospective home buyers who lost a bidding war during the previous three months had more than doubled from a year prior. Unfortunately, these supply-chain issues are not likely to be resolved soon. Global supply chains remain interrupted and increasing demand for materials as the economy reopens is likely to place additional pressure on the building materials market. Policymakers must act to improve domestic building material supply so that the residential construction industry can continue to create jobs and add much-needed inventory to the market.
February 2021
www.ncbia.com
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Won't you be our neighbor? $125,000 Vacant Lot Waterford Dr,Sheffield Village, OH, 44035 Presented by: Linda LaFleur with RE/MAX Crossroads Properties linda@lindalafleur.com 440-396-8889
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February 2021
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GROWTH AHEAD
for New Single-Family Home Size?
BY ROBERT DIETZ
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n expected impact of the virus crisis is a need for more space, as people use their homes for more purposes. And while this measure has not increased significantly yet, new home size did level off in 2020 after years of decline. According to fourth quarter 2020 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area was flat at 2,274 square feet. Average (mean) square footage for new single-family homes changed little, inching down to 2,475. On a less volatile one-year moving average, additional evidence of a leveling off of new single-family home size can be seen on the graph above. Since Great Recession lows (and on a one-year moving average basis), the average size of new single-family homes is now only 4.5% higher at 2,477 square feet, while the median size is about 8% higher at 2,273 square feet. Home size rose from 2009 to 2015 as entry-level new construction was constrained, but home size has declined since 2016 as more starter homes were developed. Going forward we expect home size to increase once 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.
February 2021
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HOUSING AFFORDABILITY
Supply Challenges Key Concerns in 2021 BY ROBERT DIETZ
E
conomic data improvement slowed at the start of 2021, as virus cases remain elevated and some local economies have enacted tightened activity restrictions. For example, December saw the first net job loss nationwide since April, with payroll employment down 140,000 and the unemployment rate flat at 6.7%. Choppy macroeconomic conditions will persist at least through the first half of 2021, as the rollout of the vaccine continues. However, housing data remain robust, though somewhat reduced compared to the fall of 2020. Mortgage purchasing activity slowed in recent weeks but remains 10% higher year over year. And home building and remodeling employment increased 22,700 in December. The sector has now offset all of its job losses from the spring of 2020. Housing affordability will be the key challenge of 2021. Interest rates are expected to increase somewhat. And new home prices will rise even higher largely because of ongoing gains in construction costs — led by a resurgence in lumber prices. In fact, softwood lumber prices recently climbed back to near their midSeptember highs. Combined with delays and cost increases for other building materials and low lot supplies in some regional markets, builders will need to balance higher costs with the ability to expand home building volume. These factors have led to two consecutive months of declining builder confidence. Though sentiment remains relatively strong, according to January’s NAHB/Wells Fargo Housing Market Index reading of 83, these declines reflect growing supply-side market challenges. Moreover, they add to the growing uncertainty regarding potential tax and regulatory policy changes that could slow the overall recovery.
February 2021
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NAHB NOW
NAHB SEEKS MEMBERS to Participate in the Building Code Development Process
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embers of the NAHB Construction Codes & Standards Committee (CC&S) are seeking members interested in participating in the building code development process through the new CC&S Emerging Leaders Program. Emerging Leaders will be involved with the CC&S committee and subcommittees and will participate in the building code development process. Building codes and standards shape the way homes are built in the United States. NAHB currently has a strong voice in the development of these codes and it is important that we stay engaged in the process for years to come. With the International Code Council set to begin development of the 2024 I-Codes on April 11, 2021, during the Committee Action Hearings, members of the NAHB CC&S Committee are preparing to meet to discuss the proposed building code changes that will affect the housing industry. Composed of long-standing members and members who have recently joined, members of CC&S participate in Proposal Oversight Groups (POG) to establish NAHB positions on proposals affecting issues such as housing affordability, energy efficiency, plumbing/mechanical, resilience, and many more that influence the next set of I-Codes. Each member selected for the Emerging Leaders Program will be paired with a mentor for guidance and support. If you’re interested becoming involved in the development of building codes that affect and shape the home building industry, learn more about program details, participation opportunities, CC&S resources, and apply on the Emerging Leaders Program page on nahb.org.
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The deadline to apply is March 3, 2021. For more information about the program, contact Cesar Lujan at clujan@nahb.org. *NCBIA Members, please feel free to contact Randy Strauss with any questions regarding this program. Randy K Strauss Ohio State Rep to NAHB 1025 Milan Avenue Amherst, Ohio 44001 Office: 440-984-2575 Cell: 440-935-2929 randykstrauss@aol.com
www.ncbia.com
February 2021
NAHB NOW
A SPECIAL 2-WEEK PPP WINDOW for Companies with Fewer than 20 Employees
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he Biden administration is establishing a two-week window starting on Wednesday, Feb. 24, in which only businesses with fewer than 20 employees — the overwhelming majority of small businesses — can apply for Paycheck Protection Program (PPP) forgivable loans. Biden’s team is also carving out $1 billion to direct toward sole proprietors, independent contractors and self-employed individuals, such as home repair contractors and small independent retailers. The majority of these businesses — those without employees — are 70% owned by women and people of color. In making the announcement, the White House said that “these businesses often struggle more than larger businesses to collect the necessary paperwork and secure relief from a lender. The 14-day exclusive application period will allow lenders to focus on serving these smallest businesses. The Biden-Harris administration will also make a sustained effort to work with lenders and small business owners to ensure small businesses take maximum advantage of this two-week window.” For more information, contact Alex Strong at astrong@nahb.org.
February 2021
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Email your order to judie@ncbia.com or call the NCBIA Office at (440) 934-1090
Applying for Membership! Mike Doran, Lorain County Recorder Ron Lowery, R&R Power Clean
Welcome New Members! Michelle McClintic, Lorain County Joint Vocational School – Affiliate Associate (Sponsored by Sara Majzun-Garwood, BCT Alarm Services, Inc.) Lorain Country Joint Vocational School 15181 State Route 58 Oberlin, OH 44074 (440) 774-1051, Ext.22272 mmcclintic@lcjvs.net http://www.lcjvs.com Lorain County Joint Vocational School is a public vocational school in Oberlin, Ohio. LCJVS primarily serves 13 school districts located in Lorain County, with parts of Erie and Huron counties also. (800) 442-8277 www.hastingsmutual.com
404 E. Woodlawn Ave. Hastings, MI 49058
Thank You for Renewing! Susan Grachanin, Buckeye Community Bank Ken Throckmorton, Forever Fence & Rail Keith Oberg, K. Hovnanian Homes – Ohio Division Gary Kaminski, Kaminski Roofing, Inc. Jamie Kotris, Kotris & Associates
Building Your Business
Mark F. Craig, Mark F. Craig, Esq.
Select Contractors
Emily May Brunke, Northwest Bank Kara Odom, Northwest Bank
Broadened Coverage This coverage helps if there’s damage to property used by you or your employees that belongs to someone else. It has a limit of $2,500 per occurrence, with a $100 deductible.
John Daly, Old Republic Title Bill Perritt, Perritt Building Company
Builders Risk and Installation Floater
Tom Sear, Ryan Homes Pam Stewart-Wells, Stewart’s TV & Appliance
Sorry to See You Go!
“Floater” coverage is for anything that floats, or moves from place to place — like your supplies and machinery. It also covers damage to the structures you’re working on, including scaffolding, foundations, and more. This has a limit of $5,000, with a $250 deductible.
For more information contact:
Theresa Riddell (440) 420-1175 The Nelson Agency, Inc. tmycps@oh.rr.com 116 4th St., Elyria, OH 44035 Phone: 440-323-8002 -ORFax: 440-323-8055 Drywallersinsurance1@prodigy.net
Brett Adams A member of: (419) 515-0506 adamsb@sprouseagency.com
Portable Tools Coverage on your tools has a limit of $1,000 per tool, to a maximum of $2,500. It also has a $500 deductible. The information referred to is not a policy. Refer to your policy for specific coverage.
Judy Nedwick, Lorain County Recorder
February 2021
© 2019 Hastings Mutual Insurance Company
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SS-1 (10/19)
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CALENDAR OF EVENTS F
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Career & Technical Month
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2021 Home & Remodeling Show Emerald Event Center, Avon
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National Designation Month
12
OHBA Organizational Meeting Hilton Easton, Columbus
5
NAHB The Nationals (virtual event) including Young Professional Awards (Sara Majzun-Garwood, our 2021 President, is a nominee - Good Luck, Sara!)
REGISTRATION IS NOW OPEN
10
3:30-5:00 pm - Executive Committee Meeting 5:00-6:30 - Board of Directors Meeting
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5:30 pm - General Membership Meeting Ahern’s Banquet Center, Avon Lake
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New Homes Month
2
Good Friday (Office Closed)
1214
NAHB Spring Board National Housing Center, Washington D.C. (tentative)
Rev. 2/16/2021
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National Home Remodeling Month
8
2021 Installation Night, Circle of Excellence, Hall of Fame
12
3:30-5:00 pm - Executive Committee Meeting 5:00-6:30 pm - Board of Directors Meeting
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NAHB Spring Leadership Meeting Washington D.C.
Memorial Day (Office Closed)
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Labor Day (Office Closed) 3:30-5:00 pm - Executive Committee Meeting 5:00-6:30 pm - Board of Directors Meeting
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OHBA Summer Board of Trustees Meeting Wooster, Ohio 11:30 am - 1:00 pm General Membership Meeting (Cookout) Pogie’s Clubhouse, Amherst
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Golf Classic Sweetbriar Golf Course, Avon Lake
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NCBIA Softball Game & Family Picnic
For the latest updates, please visit ncbia.com
V
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Thanksgiving (Office Closed)
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OHBA Fall Board of Trustees Meeting Hilton Easton, Columbus
3:30-5:00 pm - Executive Committee Meeting 5:00-6:30 pm - Board of Directors Meeting
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General Membership Meeting & Election Night Ahern’s Banquet Center, Avon Lake
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14
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NAHB Fall Leadership Meeting Houston, Texas
Spike Appreciation Month
25
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Clambake
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Independence Day observed (Office Closed)
Rev. 2/16/2021
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Associate Member Appreciation Month
5
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Careers in Construction Month
National Homeownership Month
25
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3:30-5:00 pm - Executive Committee Meeting 5:00-6:30 pm - Board of Directors Meeting
1315
NAHB Fall/Winter Board Meeting Virtual
24 27
Christmas Eve (Office Closed)
31
New Year’s Eve (Office Closed)
Christmas Day Observed (Office Closed)
Sign up. Sign in. NPP members enjoy exclusive offers and negotiated pricing from brands like these:
THANK YOU SPIKES! Our SPIKES are Our FOUNDATION
STATESMAN SPIKE (500-999 SPIKE CREDITS) Bob Yost......................... Dale Yost Construction............................... 661.25 Calvin Smith................. Calvin Smith Builders................................. 594.50 SUPER SPIKE (250-499 SPIKE CREDITS) Mary H. Felton............. Guardian Title.............................................. 490.50 Terry Bennett................. Bennett Builders........................................... 299.75 Jack Kousma................. Kousma Insulation...................................... 278.50 Chris Majzun Jr. ........... Majzun Construction................................... 256.50 ROYAL SPIKE (150-249 SPIKE CREDITS) Bill Perritt...................... Perritt Building Co...................................... 225.00 Bucky Kopf.................... Kopf Construction Corp............................. 199.50 Randy K. Strauss.......... Strauss Construction................................... 178.00 Jeff Hensley................... Lake Star Building & Remodeling............ 174.75 Tom Lahetta.................. Tom Lahetta Builders.................................. 160.00 Sara Majzun- Garwood.......BCT Alarm Services..................................... 155.00 RED SPIKE (100-149 SPIKE CREDITS) Dave Linna Sr................ Linna Homes & Remodeling..................... 137.50 Ryan Puzzitiello............ Parkview Homes.......................................... 120.50 Thomas Caruso............. Caruso’s Cabinets........................................ 110.75 Chris Majzun Sr............ Majzun Construction................................... 105.50 Patrick Shenigo............. ShenCon Construction, LLC...................... 102.00 Jason Scott..................... North Star Builders...................................... 100.00
LAWN CARE MANAGEMENT, LLC
GREEN SPIKE (50-99 SPIKE CREDITS) Tom Sear........................ Ryan Homes................................................. 98.25 Chris Mead.................... Maloney & Novotny, LLC.......................... 75.50 Tim Conrad................... Graves Lumber............................................ 67.00 Aaron Kalizewski......... Grande Maison Construction..................... 65.50 Ray Allen Thom............ Thom Concrete ............................................ 59.00
Michael Bierek
(440) 309-8802 mdblawncare@yahoo.com
LIFE SPIKE (25-49 SPIKE CREDITS) Jeremy Vorndran.......... 84 Lumber..................................................... 48.50 Liz Schneider................ Dollar Bank................................................... 40.00 Steve Schafer................. Schafer Development.................................. 30.50 John Daly....................... Old Republic Title........................................ 26.00 BLUE SPIKE (6-24 SPIKE CREDITS) Michelle Nowlin........... American Eagle Mortgage.......................... 16.50 Chris Collins................. Carter Lumber Company........................... 14.00 Jeff Lugar....................... ABC Supply Co............................................ 14.00 Ken Cassell.................... Cassell Construction.................................... 13.50 Mike Warden................. Chemical Bank............................................. 10.00 John Blakeslee............... Blakeslee Excavating................................... 9.00 Dave LeHotan............... All Construction Services........................... 7.50 Mike Chambers............ Charles, Morgan & Company.................... 7.50 Scott Kosman................ Lakeland Glass............................................. 7.50 Steve Fleming............... Shamrock Development............................. 7.00
Tim Hinkle..................Green Quest Homes................................ 6.50
February 2021
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LEGISLATIVE REVIEW
FEBRUARY 18, 2021 REPORT #1 SEVERAL BILLS REINTRODUCED AS NEW GENERAL ASSEMBLY BEGINS Not surprisingly, several bills OHBA had been watching in the 133rd general assembly have already been reintroduced for action during the 134th. HB 68 Contractor Payments (Cross, J., Sweeney, B.) Requires private owners of construction projects to pay contractors 30 days after receiving a request for payment or 30 days after certain specified work is certified as being in compliance with requirements. Text/Analysis Committee Hearing in House Commerce & Labor (2/17/2021; CONTINUED) HB 68 has been referred to the House Commerce and Labor Committee. Residential is exempt in current law and remains exempt in HB 68. OHBA has heard some concerns from small commercial contractors on potential negative impacts of the prior legislation. If there are concerns, OHBA urges contacting either of the bill’s sponsors ASAP. HB 88 Roofing Contractors (Patton, T.) To require commercial roofing contractors to have a license. Text/Analysis Committee Hearing in House Commerce & Labor (2/17/2021) While HB 88 expressly exempts 1, 2, 3 family construction, under the current OCILB law, OHBA will be monitoring any activity, given several concerns raised particularly with the prohibition on unlicensed subcontractors, as well as, the potential for local jurisdictions to require a roofing license for homebuilders. HB 107 Elevator Law (Baldridge, B.) To revise the Elevator Law. Text/Analysis Referred in House (2/17/2021; Commerce & Labor) OHBA will again work to clarify what types of equipment would need to be exempted to clearly exempt residential elevator contractors from the licensing requirements, or include a simplified registration for certain types of accessibility lift equipment based on feedback from industry members. SB 24 Home Purchases (Gavarone, T., Peterson, B.) To enact the First-time Home Buyer Savings Act, authorizing income tax deductions for contributions to and earnings on savings accounts designated for the purchase of a home. Text/Analysis Committee Hearing in Senate Ways & Means (2/17/2021; CONTINUED (No testimony)) Feel free to contact OHBA with any questions or comments.
NPDES STORMWATER 101 WEBINAR This webinar will provide an overview of these requirements. Topics will include permit coverage, Notice of Intent and Notice of Termination applications, basic storm water pollution prevention plans, and both active and post-construction requirements. The webinar will be held on March 25th at 10:00 am. Registration can be found at the link below. Registration (gotowebinar.com) page 42
www.ncbia.com
February 2021
OHBA SPRING ORGANIZATIONAL MEETING OHBA Spring Organizational Meeting will be held on March 1-2, 2021 at the Hilton Easton, Columbus. It’s not too late to sign-up for the meeting if you have not done so. Ed Brady, of HBI, will be in attendance to talk about and answer any questions regarding educational opportunities that has been approved for Ohio.
February 2021
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What members are
NCBIA provides us with a lot of helpful information. Highly recommend.
“ “
Judie and her staff are very professional and helpful, I highly recommend her and North Coast Building Association.
Judie and North Coast BIA is there for both her members and the local community. North Coast BIA works with the cream of the crop builders, renovators, and associated trades to provide the local community with the very best in homes. They are a trusted resource for their community.
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Excellent forum to meet and connect with like trades.
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The NCBIA, does a great job keeping you up to date on the latest building industry news relating to the COVID-19 crisis, as well as updates on social events, upcoming networking opportunities, and general news on Government involvement within the trades.
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Great organization, staff and an asset to the community. Great organization!
Very reliable helps businesses grow. Will go above and beyond to help anyone. You do great things for the building community.
www.ncbia.com
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Judie and her team are amazing Great to work with and really care.
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saying:
February 2021
February 2021 BWC News from CareWorks Comp “Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing had happened.” ~Winston S. Churchill
Ohio BWC Safety Congress Registration Now Open Registration is now open for the 2021 Ohio Safety Congress & Expo (OSC21)! Due to the ongoing COVID-19 pandemic, OSC21 will be a completely online event, including our first-ever digital expo. Visit the OSC21 website for more information and to register for the event, which will stream live March 10-11, 2021. Now in its 91st year, the Ohio Safety Congress & Expo is the largest and longest-running regional occupational safety, health and workers’ compensation conference in the U.S. More than 4.000 representatives from Ohio businesses and government are expected to attend the event to discover the strategies and tools needed for a healthy, safe, and productive workforce. The event offers topics on organizational behavior, safety leadership, emerging trends, and mental health. Participants can visit the digital expo marketplace, compete in a scavenger hunt, download resources, earn attendance credit and chat with others.
2-Hour Safety Training Requirement for 2020 Policy Year Deadline is 6/30/2021 2020 Rating Year—BWC Rule—ORC 4123-17-68 Group Rated and Group Retro Rated employers who have had a claim from July 1, 2018 through September 30, 2019, have to complete a required two hours of safety training by June 30, 2021. BWC’s requirement applies to any allowed claim an employer had from 7/1/18-9/30/19, regardless of size or severity. Two hours is the minimum amount of safety training mandated by the BWC. Only one person from the employer needs to take this safety training. If an employer experienced more than one claim within this period, they are still only obligated to attend two hours of safety training. If an employer has multiple policy numbers, they must attend two hours of safety training per policy. For more information about all the Ohio BWC’s training opportunities, visit the BWC’s Learning Center at: BWC Learning Center Login
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www.ncbia.com
February 2021
Selling? Merging? Closing? Spinning off? Let us know! When it comes to mergers, acquisitions, closing or even spinning off a portion of your business into a separate entity, CareWorks Comp needs to know! Plus, there are certain forms that need to be completed to let the Ohio BWC know what is going on with your company as well. Contact your Account Executive at CareWorks Comp TPA or call our main number at 1.800.837.3200.
Deadline extended for HVAC assistance program The Ohio BWC has extended their deadline to apply for reimbursement for eligible expenses under their COVID-19 Indoor Air Quality Assistance Program to March 31, 2021. This federally funded program provides reimbursement for nursing homes, assisted living centers, and adult day centers that invest in air quality improvements that reduce the spread of COVID-19. This may include the costs of inspections, assessments, maintenance, and improvements to indoor heating, ventilation, and air conditioning (HVAC) systems. It also provides reimbursement for secondary devices designed to destroy bacteria, mold, and viruses. Read more, including eligibility requirements, on the BWC’s website. We’re excited to announce that CareWorks Comp will become Sedgwick as of March 1, 2021. Sedgwick’s commitment to Ohio employers remains as strong as ever. With more than 3,000 colleagues in Ohio, they will continue to offer the best workers’ compensation program solutions to help you mitigate risk and reduce costs. At Sedgwick, taking care of people is at the heart of everything they do, because caring counts®. Under the Sedgwick name, your team will continue to provide you with the best possible service and outcomes and deliver on their mission of taking care of you and your employees. You can learn more about Sedgwick — a leading global provider of technology-enabled risk, benefits and integrated business solutions — at sedgwick.com. There will be no staff changes as a result of this merger. You will continue to receive the same compassionate, consistent and quality service from the same team you’ve been working with at CareWorks Comp. We look forward to a continued and strong partnership with Sedgwick.
Exclusive Business Platinum Card® Offer for NAHB Members Apply for the Business Platinum Card® and you can earn 125,000 Membership Rewards® points within the first 3 months of Card Membership after you spend $30,000 on qualifying purchases on the Card. Annual fee is $595. Platinum Card not right for your business? Explore our suite of Cards for businesses of all shapes and sizes.
Terms apply
Visit NAHB.org/Amex to learn more
Save 30% on Skechers footwear and apparel! Use code NPP30 at www.skechers.comfor Skechers Friends and Family Sale! Sale goes2/25/2021 to 3/3/2021, but members can save year-round when you join NPP for free. Access additional discounts at https://mynpp.com/ association/north-coast-bia.
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www.ncbia.com
February 2021
We’re in the offering NAHB members up to $1,000 business.
2020 Chevrolet Silverado 6500 HD1 Chassis Cab
2020 GMC Savana Van
2020 Chevrolet Silverado HD
2020 GMC Sierra 1500
USING THE PRIVATE OFFER FOR NAHB MEMBERS IS EASY: 1. Get your NAHB proof of membership. 2. Visit your local Chevrolet, Buick or GMC dealer and mention this Private Offer. 3. Select an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership. For even more value, combine this offer with the National Fleet Purchase Program and Business Choice Offers. For full details on the Private Offer, NAHB members should visit nahb.org/gm. Example offer for NAHB members who are business owners purchasing a 2020 Chevrolet Silverado 2500 HD Crew Cab 1LT 4WD.
$1,000 Private Offer2
+
$3,400
National Fleet Purchase Program (FVX)3
Up to
Up to
+
$1,000
Eligible Accessory Cash Allowance4
=
$5,400 In Potential Value
1 Shown with equipment from independent suppliers which is not covered by the GM New Vehicle Limited Warranty. GM is not responsible for the safety or quality of independent supplier alterations. 2Private offer amount varies by model. Up to $500 offer for retail deliveries and up to $1,000 offer for fleet deliveries. Valid toward the purchase or lease of eligible new 2020 and 2021 model year vehicles. Customer must take delivery by 1/4/2021. Not compatible with some other offers. Not valid on prior purchases. Offer excludes Chevrolet Blazer, Bolt EV, Camaro, Corvette, Sonic, Spark, Trax, Volt, Buick Cascada, Envision, LaCrosse, Regal, Verano, and all Cadillac vehicles. Additional GM models may be excluded from time to time at GM’s sole discretion. See dealer for details. 3Offer available to qualified fleet customers through 1/4/2021. Not compatible with some other offers. Take delivery by 1/4/2021. See dealer for details. 4To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/non-business-related transportation purposes. Must provide proof of business ownership. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties, and ordering, consult your dealer or visit gmbusinesschoice.com. Not eligible on Associated Accessories from third-party independent suppliers. Not available with some other offers. Take delivery by 1/4/2021. See dealer for details.
©2020 General Motors, LLC. All rights reserved. The marks appearing in this ad are the trademarks or service marks of GM, its subsidiaries, affiliates, or licensors.
EYE ON THE ECONOMY
LOW MORTGAGE RATES & Desire for Space Continue to Convert Prospective Buyers into Active Buyers
O
BY ROSE QUINT
f the 15% of American adults considering a future home purchase in the final quarter of 2020, 56% have moved beyond planning and are actively trying to find one to buy, up from the comparable 43% share a year earlier. This increase marks the fourth consecutive yearover-year rise in the share of prospective buyers who have become active buyers. Several factors help explain the increase, including fear of missing out on low mortgage rates, a desire for more space due to COVID-19, and a desire to move out to outlying suburbs. Between the fourth quarters of 2019 and 2020, significantly larger shares of Millennials (46% to 65%) and Gen X’ers (43% to 57%) planning to buy a home have become engaged and are actively searching for a home. On the other hand, the shares remained essentially flat among Gen Z (42%) and Boomer (38%) prospective buyers. Geographically, larger shares of prospective buyers in every region are actively trying to find a home to buy than a year ago, but the increase is most notorious in the West (41% to 61%) and in the Northeast (49% to 67%). As the share of prospective buyers actively searching for a home continues to increase, the length of time spent searching continues to grow. In the fourth quarter of 2020, 69% of buyers actively engaged in the purchase process have spent 3 months or longer looking, compared to 60% a year earlier. This marks the eighth consecutive year-over-year gain in the share of active buyers looking for 3+ months for a home to buy.
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www.ncbia.com
February 2021
NAHB members save up to 75% off the officedepot.com regular prices on our Best Value List of preferred products!
Exclusive NAHB Savings! Thousands of products discounted off the officedepot.com regular prices! Order online | Pick up in 1 hour!* Free delivery on qualifying orders of $50 or more!**
Create an account online through www.officediscounts.org/nahb and browse through your discounts
* The Housing Trends Report is a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets. The HTR is produced quarterly to track changes in buyers’ perceptions over time. All data are derived from national polls of representative samples of American adults conducted for NAHB by Morning Consult. Results are not seasonally adjusted due to the short-time horizon of the series, and therefore only yearover-year comparisons are statistically valid.
Text NAHBSPC to 555-888 to save your free store discount card on your phone Businesses may qualify for additional discounts. please email: NAHB@officedepot.com or call 855-337-6811 X 12897
Office Depot updates pricing, product and service assortment on a regular basis as a result of a variety of factors, including, but not limited to, market and competitive forces, and reserves the right to change pricing and product assortment at any time without notice. Offers are non-transferable. Office Depot reserves the right to limit quantities sold to each customer. We are not responsible for errors. Office Depot is a trademark of The Office Club, Inc. OfficeMax is a trademark of OMX, Inc. ©2020 Office Depot, Inc. All rights reserved.
February 2021
www.ncbia.com
page 51
MESSAGE FROM Randy Strauss - Ohio State Rep to NAHB
I
wanted to address the current lumber crisis. No, I do not have any
solutions and this whole thing is affecting all of us, builders, subs and suppliers as well as our customers. As these lumber prices continue to be out of control, we are all losing sales. The link below tells of NAHB's position and the efforts to pressure the Biden administration do something to fix it. Record-High Lumber Prices are Hammering Housing Affordability I’ve also attached two illustrative charts that I feel really put the current situation into context. The first shows prices since January 2020 and % changes from low to high and high to low points. The second shows the average price of lumber per year going back to 1995. I know going back that far is not relevant today, but it really shows how crazy the past two years have been compared to business as usual. Hopefully, this will begin to correct itself soon, especially if we get some help from Washington!
“
I wanted to address the current lumber crisis. No, I do not have any solutions and this whole thing is affecting all of us, builders, subs and suppliers as well as our customers.
Randy K Strauss Ohio State Rep to NAHB 1025 Milan Avenue Amherst, Ohio 44001 Office: 440-984-2575 Cell: 440-935-2929 randykstrauss@aol.com
www.ncbia.com
“
Take care all.
page 52
Randy Strauss, Strauss Construction, Inc.
February 2021
February 2021
www.ncbia.com
page 53
UPS
February NAHB Savings Program Highlights General Motors General Motors is proud to offer NAHB Members a Private offer of $500 or $1,000 toward the purchase or lease of an eligible new Chevrolet, Buick or GMC vehicle (excluded vehicles include Chevrolet Blazer, Corvette, Spark, Spark EV, SS, Trax, Volt; Buick Lacrosse, Regal, Verano, Cascada; all Cadillac models). Available through Jan.2, 2022. LEARN MORE
Lowe's Pro NAHB members save big at Lowe’s. Now through Dec. 31, 2021, NAHB members can save 5%* plus a bonus 2%** when you use your Lowe’s Business Credit. Sign up and start saving today at LowesForPros.com/NAHB. Discover more ways we can help your business. LEARN MORE
American Express Business Platinum® Card Eligible NAHB members can earn 125,000 Membership Rewards® points after they spend $30,000 on eligible purchases on the card in the first three months of Card Membership. Terms apply. LEARN MORE
NAHB members save on shipping with flat rate discounts from UPS. • 50% on Domestic Next Day/Deferred • 30% on Ground Commercial / Residential and • up to 50% on additional services NAHB members can open a new account, or to apply these discounts to their existing account, by visiting www.savewithups.com/nahb or call 1-800-MEMBERS (1-800-636-2377). LEARN MORE
Dell Wherever work takes you, we’ll be there. Stay productive no matter where you are with seamless solutions to keep you connected from anywhere. Save an additional 5% now at www.dell.com/NAHB. LEARN MORE
NAHB Contracts Affordable. Reliable. Convenient. NAHB Contracts offers a variety of residential construction contracts, exclusively for home builders and remodelers. Each contract product is delivered as a downloadable Word document. Members save hours of work?which means saving hundreds of dollars?with every contract. LEARN MORE Take advantage of savings on business-critical products with more than 20 national companies (and counting) that offer exclusive deals, just for NAHB members.
Special Association Discount for the North Coast Building Industry Association
SuperFleet Mastercard®
Association Fueling Program A fuel card program designed with associations in mind. EARN AN ADDITIONAL 15¢ PER GALLON!†
• Save 5¢ per gallon at Speedway locations* • Over 2,700 fueling locations in the U.S. • Over 175,000 locations nationwide that accept Mastercard cards** • Custom card controls and increased security • Online reporting and account management
CUSTOMER NAME VEHICLE DESCRIPTION VEHICLE IDENTIFICATION
Call Holden Moll at 1-760-918-5933 or email holden.moll@fleetcor.com to start earning your association savings! Earn Speedy Rewards on eligible purchases at Speedway.
Be sure to reference the North Coast Building Industry Association for your special 15¢ discount.
†Limited time offer valid for new Speedway SuperFleet Mastercard applications received from 1/1/2021 through 12/31/2021. New approved accounts will earn 15 cents per gallon rebate on Speedway fuel purchases in the first three months after account setup. Rebates are cents per gallon based on the number of gallons purchased at Speedway locations per calendar month. The maximum promotional rebate in any one-month period, regardless of billing terms, is $300. Rebates are subject to forfeiture if account is not in good standing. *Rebates are cents per gallon based on the number of gallons purchased at Speedway locations per calendar month. Rebates will be reflected on your billing statement in the form of a statement credit. Not valid on aviation, bulk fuel, propane or natural gas purchases. Rebates are subject to forfeiture if account is not in good standing. Program pricing is subject to change any time beginning 12 months after sign-up. **Program terms and conditions apply. Visit www.fleetcor.com/terms/superfleet-mc for details. Fees may apply in some cases, such as for optional services, late payments and/or credit risk. Fuel purchases at locations other than Speedway locations are subject to an out-of-network transaction fee. The SuperFleet Mastercard® is issued by Regions Bank, pursuant to a license by Mastercard International Incorporated. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SuperFleet Mastercard Program Application FAX Application to 1-760-918-5932 or email to holden.moll@fleetcor.com For more information contact Holden Moll at 1-760-918-5933
BUSINESS INFORMATION (Required) Please tell us about your business: Legal Company Name (limit to 28 characters)*
Primary Fleet Contact First Name*
Subsidiary or DBA (limit to 20 characters)
Last Name*
Title*
Account Security Code (For Card Activation & Customer Service) – 5 NUMBERS*
Card Delivery Street Address 1 (No PO Boxes)*
Business Phone #*
Cell Phone #
Fax#
Card Delivery Street Address 2
Type of Business*
Years in Business*
Full Time Employees*
City*
State*
Estimated Monthly Charges/Spending ($)*
Estimated Monthly Gallons*
Company Billing Street Address 1 (If Different Than Card Delivery Address)
# of Vehicles*
# of Cards Needed
Company Billing Street Address 2
FederalTax ID #*
City
ZIP*
State
ZIP
# of Drivers
Statement Delivery Method:
Electronic
Paper
Email Address*:
Type of Organization*: o Sole Proprietorship
o Partnership
o Public Corporation
o Private Corporation
o Non-Profit
Government & Education
Authorized Signature Required (Representative acknowledges receiving fuel pricing and payment terms)
LLC
LLP
Initial Here:
Please Read Carefully: FleetCor Technologies Operating Company, LLC (“FleetCor”) operates the SuperFleet Mastercard product. This application is made to FleetCor. By signing this application, Customer authorizes FleetCor to check Customer’s credit references and the information on this application and to obtain consumer or commercial credit reports to check Customer’s credit standing, both for this application and for the updates of Customer’s credit file and renewals of Customer’s SuperFleet Mastercard card(s). Customer acknowledges that this application is subject to approval and acceptance of Customer by FleetCor in Louisiana. If this application is approved, then Customer will be notified of its available credit/spend limit, and Customer will not allow its unpaid account balance to exceed its credit limit. Customer agrees that Louisiana law governs the terms and conditions of the SuperFleet Mastercard card(s), which terms and conditions will accompany the card(s) if this application is approved ("Card Terms"). Customer’s accepting, signing, or using any SuperFleet Mastercard card(s) will constitute Customer’s acceptance of those terms and conditions including, without limitation, Customer’s unconditional obligation to pay for all use of SuperFleet Mastercard cards provided to Customer and all use of Customer’s account each billing cycle, as well as all interest, fees and costs associated with such cards and account. The account is not a revolving credit account. Customer agrees that any liability arising or resulting from the misuse, unauthorized use, loss or theft of any one or more of the cards issued or of Customer’s account shall be fully borne, assumed and paid by Customer except as provided by applicable law and the Card Terms. Customer also agrees that Customer will exclusively use the SuperFleet Mastercard card(s) for commercial purposes and understands that Customer’s card(s) may be canceled if Customer uses them for personal, family, or household purposes. In the event that Customer’s account is turned over to a collection agency or an attorney for collection, Customer agrees to pay all such costs, fees and expenses of such agency or attorney, including, without limitation, court costs and out-of-pocket expenses. By signing below, Customer confirms that everything it has stated in this application is correct and that the signing authorized representative is duly authorized to enter this relationship on behalf of customer.
I agree to theTerms of this Application (Please check box) o Print Name* (Authorized Representative)
Signature* (Authorized Representative)
Title:
Telephone #:
Date*:
BUSINESS OWNER/ACCOUNT PRINCIPAL Required for all businesses excluding public corporations, non-profits, governments and educational institutions. Required for all persons owning 25% or more of business. Please use the Appendix to record additional owners. Principal First Name
Middle Initial
Principal Street Address (No PO Boxes)
City
Last Name
Signature (Principal)
Social Security #
State
Date of Birth
Zip
Home Phone #
Does this person have significant responsibility for managing the legal entity listed above?
Yes
Cell Phone #
No
***OFFICE USE ONLY*** Market:
Rep ID:
Rep Name:
ATS Code (last 4 digits):
*Required Field
The SuperFleet Mastercard® is issued by Regions Bank, pursuant to a license by Mastercard International Incorporated. Mastercard is a registered trademark of Mastercard International Incorporated.