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
5321 Meadow Lane Court Suite 23 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 Marketing Associate Ashlyn Bellan-Caskey | ashlynncbia@gmail.com
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 Tom Caruso, Caruso Cabinets Liz Schneider Dollar Bank Mary H. Felton, Guardian Title Jack Kousma, Kousma Insulation Jeff Hensley, Lake Star Building & Remodeling Chris Majzun Jr., Majzun Construction Co. Chris Majzun Sr., Majzun Construction Co. Jim Sprague, Maloney + Novotny, LLC Randy Strauss, Strauss Construction Tom Lahetta, Tom Lahetta Builders, Inc. Bob Yost, Dale Yost Construction
2024 NAHB Delegate
These are our members who represent our local industry in Washington DC and Columbus:
2024 NCBIA Officers President Tim King, K. Hovnanian Homes Vice President Mike Meszes, DRC Construction Co. Associate Vice President John Toth, Floor Coverings International Treasurer Melanie Stock, First Federal Savings of Lorain Secretary Mike Gidich, Honey Dudes Handyman Service
Tim King, K. Hovnanian Homes
NAHB Senior Life Delegate
Randy Strauss, Strauss Construction
Ohio’s State Rep. to NAHB
Randy Strauss, Strauss Construction
OHBA 2024 President
Enzo Perfetto, Enzoco Homes
OHBA Past President 2024 NCBIA Board of Directors Sam Hudspath, All Construction Services Dave Linna, Linna Homes & Remodeling Sara Majzun, Majzun Construction Co. Jon Sherer, Paraprin Construction Brian Schwab, RestorePro Jason Rodriguez, The S.J.R Building Co.
Randy Strauss, 1996
2024 OHBA Trustees
Tim King, K. Hovnanian Homes John Eavenson, Perpetual Development
OHBA Area 2 Vice-President
Ric Johnson, CAPS Builder & Right at Home Technologies
Kevin Walker, Walker Wealth Managements & Great Lakes Properties & Investments
January 2024
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16-17
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36-44
Table of Contents
6 - Menu of Services 7 - Save the Dates 8-
A Night to Remember - 2023-2024 NCBIA President
9-
19- Eye on Housing:
New Home Sales Bounce Back December on Lower Mortgage Rates
20-21 -
Welcome New Members! Thanks for Renewing! Sorry to See you Go!
24 - NAHB Now:
Our Beginning- 80 Years Ago - Executive Officers Report
New Higher Fines For OSHA Violations in Effect for 2024
Eye on Housing: Employment Situation in December: State-Level Analysis
- Eye on the Economy: Why Industry Sentiment is Rebounding
10
11- Eye on Housing:
Housing Share fo GDP Inched Up In The Fourth Quarter of 2023
12- Night at the Races SAVE THE DATE
14-
2024 Annual NCBIA Home & Remodeling Show
15 -
Eye on Housing: Builders' Top Challenges for 2024
16-17-
2024 March General Membership Meeting Flyer - Thank You SPIKES!
18
January 2024
2024 Calendar of Events
50 -
OHBA: Husted Announces High School Tech Internship Now Open for Ohio Students
51 - NAHB Now: Builder Sentiment Surges on Falling Interest Rates
52-53 -
Residential Liens for Subs Phil Truax
54 - HBA Rebates 56-60 -
Speedway/Fleetcor Flyers
25
26
- Eye on the Economy: Macro Data Indictate Home Building Growth in 2024
27-31 -
Thank You to Our Sponsors! 2024 80th Anniversary Installation Night Photo Gallery
32-35 -
Legislative Review
36-44 -
2024 Marketing Guide
46 -
Eye on Housing: PANDEMIC SILVER LINING: Young Adults Moving Out of Parental Homes
48-49 -
www.ncbia.com
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n s
s
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HOW CAN WE HELP? North Coast Building Industry Association Menu of Additional Products and Services
Single Sided 2-Sided
$0.10 $0.20
North Coast Building Industry Association Menu of Additional Products and Services
Equipment
Copies
Raffle Boards, Drum & Equipment
Black & White (8.5”x11”)
Copies Black & White (8.5”x11”)
HOW CAN WE HELP?
$100 per day
Black & White (8.5”x14”)
Equipment $0.10 $0.20
Single Sided 2-Sided
$0.15 $0.20
Single Sided 2-Sided
$0.15 $0.20
Black & (11”x17”) White
$0.50
Black & (11”x17”) White
$0.50
Single Sided 2-Sided
$0.25 $0.50
Color (8.5”x14”) Single Sided 2-Sided
$0.27 $0.52
Color (11”x17”)
$2.00
$100 per day
Black & White (8.5”x14”)
Single Sided 2-Sided
Color (8.5”x11”)
Raffle Boards, Drum & Equipment
Color (8.5”x11”)
Warranty Books $30 each (plus shipping, if applicable)
Your New Home $7 each (plus shipping, if
Single Sided 2-Sided
$0.25 $0.50
Color (8.5”x14”) Single Sided 2-Sided
$30 each (plus shipping, if applicable)
What members are
Color (11”x17”)
applicable)
$0.27 $0.52
Warranty Books
$2.00
Your New Home
$7 each (plus shipping, if applicable)
saying:
Design Services
Design Services
Graphic Design Services
Graphic Design Services What a great evening!
$35 per hour
$35 per hour
Contact Ashlyn Bellan-Caskey at ashlynncbia@gmail.com
Contact Ashlyn Bellan-Caskey at ashlynncbia@gmail.com
NEED SOMETHING ELSE? JUST ASK!
NEED SOMETHING ELSE? JUSTcategories ASK! So nice to see new
For more information on any of these products & services, please contact the NCBIA Office at (440) 934-1090 or email judie@ncbia.com
For more information on any of these products those who a great & services, please contact thedo NCBIA Officejob at for us. or email judie@ncbia.com (440) 934-1090
*Subject to change
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1/30/24
“ “ “
and being able to recognize
*Subject to change
1/30/24
Such a nice event, I recommend others to attend this in the future.
www.ncbia.com
“ “ “
?
January 2024
Save the
Date!
Want to be a sponsor for any of these events? Let us know! Sponsor early to get maximum exposure! Call or email Judie at judie@ncbia.com for marketing opportunities to help your bottom line!
Saturday, February 24, 2024 from 9:00 AM - 5:00 PM AND
Sunday, February 25, 2024 from 10:00 AM - 3:00 PM
2024 Home and Remodeling Show
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!
Emerald Event Center 33040 Just Imagine Dr., Avon, OH 44011
Tuesday, March 5, 2024 Committee Chair Meeting 8 PM - 9 PM
NCBIA Office 5321 Meadow Lane Court, Suite 23 Sheffield Village, OH 44035
Wednesday, March 20, 2024
March General Membership Meeting With Carl Harris, NAHB Chairman
5 PM - 7 PM
Tom's Country Place 3442 Stoney Ridge Road Avon, OH 44011
Tuesday, April 16, 2024 Economic Forecast
Presented By: Rob Dietz, NAHB Chief Economist
5:30 PM - 7:30 PM
Tom's Country Place 3442 Stoney Ridge Road Avon, OH 44011
Saturday, April 20, 2024 Night at the Races
American Legion Post 211 31972 Walker Road Avon Lake, OH 44012
If you would like to participate in a committee, please email Judie Docs at judiencbia@gmail.com. Check the website at www.ncbia.com for up-to-date changes, additions, and corrections to these events! January 2024
www.ncbia.com
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NCBIA 2023-24 PRESIDENT
A NIGHT To Remember
Tim King, K. Hovnanian Homes
As you know we installed our newly elected 2024 officers and directors at our 80th Year Anniversary, Annual Installation and Awards Ceremony at Tom’s Country Place in Avon. If you were not there you missed a great event! 2024 Officers and Board of Directors were installed by our Executive Officer, Judie Docs. Two members were then inducted into the NCBIA Hall of Fame which was established to honor individuals who have made a lasting contribution to the housing industry though their work in building and development. The first inductee honored was David Linna Sr. of Linna Homes and Remodeling, the second was Jack Kousma of Kousma Insulation. I also gave out two Diamonds of Distinction Awards. These awards are given to individuals who were instrumental in helping me during my first year of presidency and have made a lasting impact upon the association. Sara Majzun of Majzun Construction Co. and Judie Docs, our Executive Officer, were honored to receive these awards this year.
Best Custom Home Ending the evening were our 2023 Circle of Excellence Awards 3,001 – 4,000 square feet which features the Best of NCBIA, Bob Schmitt Homes and the awards were as follows: Best Custom Home Over 4,000 square feet Best Kitchen Remodel Bennett Builders & Remodelers Small Volume Remodeler $50,001 - $100,000 Best Superintendent/Production Manager Majzun Construction Co. Chris Pintner K. Hovnanian Homes Best Kitchen Remodel Large Volume Remodeler Best Achievement in New Home Sales Over $100,000 Gold Award Bennett Builders & Remodelers $5,000,001 - $10,000,000 Diana DeCesare Best Bathroom Remodel Large Volume Remodeler Best Achievement in New Home Sales Over $50,000 Platinum Award Bennett Builders & Remodelers $10,000,001 and over Connie Linkous Best Basement Remodel Large Volume Remodeler Best Achievement in New Home Sales Over $100,000 Platinum Award Bennett Builders & Remodelers $10,000,001 and over Stacey Yezbek Best Addition Large Volume Remodeler Affiliate of the Year Over $100,000 Debra Seeley Reaser Construction Third Federal Best Custom Home Trade of the Year 2,001 – 3,000 square feet Paul Samek Bennett Builders & Remodelers Luxury Heating Company page 8
www.ncbia.com
Supplier of the Year Cathie Emery Sims-Lohman Fine Kitchens & Granite Associate of the Year Theresa Riddell The Nelson Agency Remodeler of the Year Small Volume Majzun Construction Remodeler of the Year Large Volume Reaser Construction Best Community Bob Schmitt Homes Developer of the Year John Eavenson Perpetual Development Builder of the Year Bennett Builders & Remodelers Our Circle of Excellence categories were expanded this past year so there is something for everyone. Think about entering or submitting an entry for someone deserving of our next Circle of Excellence awards program.
January 2024
EXECUTIVE OFFICER’S REPORT
OUR BEGINNING 80 Years Ago 1944-1969 (Part 1 of 3) In 1944, several local builders organized to wage their own war on restrictions they were experiencing in the availability of building materials. They knew the U.S. involvement in World War II was winding down and troops returning home would need homes in which to live and raise families. The driving force behind the young organization was A.W. Rahls and Otis Hafely. They helped form a seven-member strong Lorain Home Builders Association and also assisted in organizing the Elyria Home Builders Association in 1946. The two organizations would later merge in 1951 to form the Home Builders Association (HBA) of Lorain County. Under the direction of charter members, which included A.W. Rahls, Otis Hafely, Jack Mueller, Erve Wasen and Frank Towner, the Association worked to protect the rights of those involved in the building trades throughout Lorain County.
by Judie Docs, CSP, MCSP, MIRM, CMP, CGP
The early 1950’s saw a tremendous housing boom. The pent-up demand for housing was so great that nearly everything built was sold immediately. On May 28, 1952, the recently merged HBA joined the National Association of Home Builders and the Ohio Home Builders Association to better serve the needs of its members and to protect their interests. Many new technological developments such as the replacement of rock lathe with drywall, factory-built kitchen cabinets, roof trusses, poured foundation walls, prehung doors and pre-cut casting came into being with the Association serving as conduit and message center for their implementation. This increased information created a communication need for Association members that caused the position of executive secretary to be established. The building industry was experiencing levels of standardization and professionalism not previously heard of. The 1950’s was a decade unrivaled before or since for innovation, growth, and challenge. By 1957 the HBA had grown to 100 members and by 1960, the National Association of Home Builders had become a respected and powerful voice for the industry in Washington D.C. The 1960’s witnessed the war babies coming of age, movement away from the core cities and the rapid growth of suburbia. Buyers were becoming for sophisticated, and builders turned to marketing and promotions to sell their products. The HBA assisted their efforts by holding the first scattered-site Parade of Homes in 1964 and the first Home Show at the new Midway Mall in 1968. The HBA also hired its first part-time executive officer in 1960 to help meet the demands of a growing membership. By 1963, the Association was involved in so many events and providing so many services, that the board of directors named Howard Head as their first full-time executive officer. Howard served in that capacity from 1963 to 1974.
January 2024
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EYE ON HOUSING
EMPLOYMENT SITUATION IN December: State-Level Analysis
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BY: DANUSHKA NANAYAKKARA-SKILLINGTON
onfarm payroll employment increased in 39 states and the District of Columbia in December compared to the previous month, while 11 states saw a decrease. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 216,000 in December, following a gain of 173,000 jobs in November. On a month-over-month basis, employment data was most favorable in California, which added 23,400 jobs, followed by Texas (+19,100), and then Florida (+16,500). A total of 28,700 jobs were lost across thirteen states, with Virginia reporting the steepest job losses at 11,800. In percentage terms, employment in Alaska increased the highest at 0.5%, while Vermont saw the biggest decline at 0.6% between November and December. Year-over-year ending in December, 2.7 million jobs have been added to the labor market. Except for Mississippi, all other states and the District of Columbia added jobs compared to a year ago. The range of job gains spanned from 1,400 jobs in Vermont to 369,600 jobs in Texas. Conversely, Mississippi lost 7,800 jobs on a year-overyear basis. In percentage terms, Nevada reported the highest increase at 3.8%, while Mississippi showed the largest decrease at 0.7% compared to a year ago.
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Across the nation, construction sector jobs data[1]—which includes both residential and non-residential construction— showed that 32 states reported an increase in December compared to November, while 16 states and the District of Columbia lost construction sector jobs. The remaining two, Alaska and Indiana reported no change on a monthover-month basis. New Jersey, with the highest increase, added 3,800 construction jobs, while Ohio, on the other end of the spectrum, lost 4,100 jobs. Overall, the construction industry added a net 17,000 jobs in December compared to the previous month. In percentage terms, South Dakota reported the highest increase at 4.1% and the District of Columbia reported the largest decline at 1.9%. Year-over-year, construction sector jobs in the U.S. increased by 197,000, which is a 2.5% increase compared to the December 2022 level. Texas added 32,800 jobs, which was the largest gain of any state, while New York lost 15,600 construction sector jobs. In percentage terms, South Dakota had the highest annual growth rate in the construction sector at 20.8%. Over this period, New York reported the largest decline of 3.9%.
www.ncbia.com
January 2024
EYE ON HOUSING
HOUSING SHARE OF GDP INCHED UP In the Fourth Quarter of 2023
H
BY: JESSE WADE
ousing's share of the economy rose to 16.0% at the end of the fourth quarter of 2023. Overall GDP increased at a 3.3% annual rate, following a 4.9% increase in the third quarter of 2023, and a 2.1% increase in the second quarter of 2023. The annual GDP growth in 2023 was reported at 2.5%. Housing’s share of GDP on an annual basis in 2023 was 15.9% — the lowest level since 2019 (15.7%). This marks a decrease from the 2022 housing GPD share of 16.4%. In the fourth quarter, the more cyclical home building and remodeling component – residential fixed investment (RFI) – remained level at 3.9% of GDP. RFI added 4 basis points to the headline GDP growth rate in the fourth quarter of 2023, marking two consecutive quarters of positive contributions. For the year, RFI subtracted 49 basis points from GDP growth. Housing services added 5 basis points to GDP growth in the fourth quarter. Moreover, housing services added 5 basis points to annual GDP growth.
For the fourth quarter, RFI was 3.9% of the economy, recording a $1.1 trillion seasonally adjusted annual pace. RFI constituted 3.9% of GDP at $1.1 trillion for the year as well. The second impact of housing on GDP is the measure of housing services, which includes gross rents (including utilities) paid by renters, and owners’ imputed rent (an estimate of how much it would cost to rent owner-occupied units), and utility payments. The inclusion of owners’ imputed rent is necessary from a national income accounting approach, because without this measure, increases in homeownership would result in declines in GDP. For the fourth quarter, housing services represented 12.0% of the economy or $3.4 trillion on a seasonally adjusted annual basis. For 2023, housing services accounted for 11.9% of GDP at $3.3 trillion over the year. Taken together, housing’s share of GDP was 16.0% for the fourth quarter. Historically, RFI has averaged roughly 5% of GDP while housing services have averaged between 12% and 13%, for a combined 17% to 18% of GDP. These shares tend to vary over the business cycle. However, the housing share of GDP lagged during the post-Great Recession period due to underbuilding, particularly for the single-family sector.
Housing-related activities contribute to GDP in two basic ways: The first is through residential fixed investment (RFI). RFI is effectively the measure of home building, multifamily development, and remodeling contributions to GDP. It includes construction of new single-family and multifamily structures, residential remodeling, production of manufactured homes and brokers’ fees.
January 2024
www.ncbia.com
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Night at the Races! April 20th, 2024
page 12
www.ncbia.com
January 2024
Your Next Adventure Awaits. Book your GETAWAY and GET up to 30% OFF with Pay Now* Enjoy the open road with deals from your NAHB Avis and Budget Car
Rental Savings Program. With the Pay Now feature members can save up to 30% off base rates on every rental, plus receive additional offers like dollars off, a complimentary upgrade or a free weekend day.
To make a reservations with Avis, visit: www.avis.com/nahb and use your AWD #G572900 when booking to save. To book with Budget, visit: www.budget.com/nahb and use your BCD #Z536900 to apply savings.
*Terms Apply.
January 2024
www.ncbia.com
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EYE ON HOUSING
BUILDERS' TOP Challenges for 2024
A
BY: ASHOK CHALUVADI
ccording to the January 2024 survey for the NAHB/ Wells Fargo Housing Market Index, high interest rates were a significant issue for 90% of builders in 2023, and 77% expect them to be a problem in 2024. The second most widespread problem in 2023 was rising inflation in US Economy, cited by 83% of builders, with 52% expecting it to be a problem in 2024.
The cost and availability of labor was a significant problem to only 13% of builders in 2011. That share has increased significantly over the years, peaking at 87% in 2019. Fewer builders reported this problem in 2020 (65%), but the share rose again in 2021 (82%) and 2022 (85%). The share eased slightly in 2023 to 74%. A similar 75% expect the cost and availability of labor to remain a significant issue in 2024. In 2011, building materials prices was a significant problem to 33% of builders. The share has fluctuated over the years, from a low of 42% in 2015 to a peak of 96% in 2020, 2021, and 2022. The slowdown in single-family construction in 2023 made this less of a problem for builders last year, as ‘only’ 63% reported it as a significant issue. Fewer expect it to face it in 2024 (58%).
January 2024
Compared to the supply-side problems of materials and labor, problems attracting buyers have not been as widespread, but builders expect many of them to become more of a problem in 2024. Buyers expecting prices or interest rates to decline if they wait was a significant problem for 71% of builders in 2023, with 77% expecting it to be an issue in 2024. Negative media reports making buyers cautious was reported as a significant issue by 56% of builders in 2023, and 54% expect this problem in 2024. Concern about employment/economic situation was another buyer issue for 48% of builders in 2023, but 55% anticipate this issue in 2024. Gridlock/uncertainty in Washington making buyers cautious was a significant problem for 42% of builders in 2023, but a larger 54% expect it to be a problem in 2024. Less than 30% of builders experienced problems in 2023 with buyers being unable to sell existing homes, potential buyers putting off purchase due to student debt, and competition from distressed sales/foreclosures. For additional details, including a complete history for each reported and expected problem listed in the survey, please consult the full survey report.
www.ncbia.com
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THANK YOU SPIKES! STATESMAN SPIKE (500-999 SPIKE CREDITS) Bob Yost......................... Dale Yost Construction............................... 696.75 Mary H. Felton............. Guardian Title.............................................. 541.50
Our SPIKES are Our FOUNDATION
SUPER SPIKE (250-499 SPIKE CREDITS) Terry Bennett................. Bennett Builders & Remodelers................. 302.75 Jack Kousma................. Kousma Insulation...................................... 297.00 Chris Majzun Jr. ........... Majzun Construction Co............................. 276.00 Sara Majzun......................Majzun Construction Co............................. 265.50 ROYAL SPIKE (150-249 SPIKE CREDITS) Bill Perritt...................... Perritt Building Co...................................... 225.50 Jeff Hensley................... Lake Star Building & Remodeling............ 185.75 Randy K. Strauss.......... Strauss Construction................................... 180.50 Tom Lahetta.................. Tom Lahetta Builders.................................. 173.50 RED SPIKE (100-149 SPIKE CREDITS) Dave Linna Sr................ Linna Homes & Remodeling..................... 138.50 Jason Scott..................... Greyhawk Holdings, LLC.......................... 137.00 Thomas Caruso............. Caruso Cabinets........................................... 117.75 Patrick Shenigo............. ShenCon Construction, LLC...................... 111.00 Tom Sear........................ Ryan Homes................................................. 110.25 Chris Majzun Sr............ Majzun Construction Co............................. 107.00 GREEN SPIKE (50-99 SPIKE CREDITS) Jim Sprague................... Maloney & Novotny, LLC.......................... 99.00 Chris Mead.................... Maloney & Novotny, LLC.......................... 79.00 Aaron Kalizewski......... Grande Maison Construction..................... 70.00 Jeremy Vorndran.......... 84 Lumber..................................................... 63.00 Liz Schneider................ Dollar Bank................................................... 54.00 LIFE SPIKE (25-49 SPIKE CREDITS)
Tim King......................K. Hovnanian Homes.............................. 48.50
Steve Schafer................. Schafer Development.................................. 30.50 John Daly....................... Network Land Title..................................... 27.50 BLUE SPIKE (6-24 SPIKE CREDITS) John Toth....................... Floor Coverings International.................... 17.00 Chris Collins................. Carter Lumber.............................................. 16.00 Mark McClaine............. 84 Lumber..................................................... 14.00 Ken Cassell.................... Cassell Construction.................................... 13.50 Dave LeHotan............... All Construction Services........................... 12.00 John Blakeslee............... Blakeslee Excavating, Inc............................ 11.50 Steve Fleming............... Shamrock Development............................. 11.50 Ashley Oates................. 84 Lumber..................................................... 10.00 Scott Kosman................ Lakeland Glass............................................. 9.50
Tim Hinkle..................Green Quest Homes................................ 6.50
Jim Tipple...................... Maranatha Homes....................................... 6.50 Lindsay Yost Bott.......... Dale Yost Construction............................... 6.00 Mike Meszes................. DRC Construction....................................... 6.00
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www.ncbia.com
January 2024
EYE ON HOUSING
NEW HOME SALES BOUNCE BACK In December on Lower Mortgage Rates
F
BY: DANUSHKA NANAYAKKARA-SKILLINGTON
alling interest rates in the closing weeks of 2023 helped to bring buyers off the sidelines and provide a boost for new home sales. Sales of newly built, singlefamily homes in December increased 8.0% to a 664,000 seasonally adjusted annual rate from an upwardly revised reading in November, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in December is up 4.4% from a year earlier. On an annual basis, new home sales totaled 668,000 in 2023, up 4.2% from the 2022 figure of 641,000.
A year ago in January, there were 72,000 completed, ready–to–occupy homes available for sale (not seasonally adjusted). By the end of December, that number increased 22.2% to 88,000. However, completed, ready–to–occupy inventory remains just 19% of total inventory and homes under construction account for 58% of the inventory. Homes that have not started construction when the sales contract is signed account for 23% of new homes sold in December.
A new home sale occurs when a sales contract is signed, or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the December reading of 664,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory in December remained elevated at a level of 453,000, up 0.4% compared to a year earlier. This represents an 8.2 months’ supply at the current building pace. A measure near a 6 months’ supply is considered balanced. The median new home sale price in December was $413,200, edging down 3.0% from November, and down 13.8% compared to a year ago. Decline in home size and stability in building material costs, especially lumber prices, have contributed to a fall in home prices. In terms of affordability, the share of entry-level homes priced below $300,000 has been steadily falling in recent years. Only 16% of the homes were priced in this entry-level affordable range, while 35% of the homes were priced above $500,000. Most of the homes (49%) were priced between $300,000-$500,000. Regionally, on a year-to-year basis, new home sales are up in all four regions: up 3.5% in the Northeast, 3.6% in the Midwest, 5.2% in the South. and 2.1% in the West.
January 2024
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page 19
Welcome New Members! Michael McLaughlin, McLaughlin Agency, Inc., DBA Axis Insurance (Associate) 1991 Crocker Rd, Suite 628 Westlake, OH 44145 (440) 420-6886 mike@insuredbyaxis.com http://insuredbyaxis.com Sponsored by: Connie Linkous, K. Hovanian Homes Saving money is a vital concern for nearly everyone in these difficult times. Because of this, it is important that you find the best possible rate for your auto and homeowners insurance policy. Luckily, it is much easier to find a great rate for insurance now than ever before. Working with an independent agency is actually still a superior way to obtain insurance. The agent can help you get the coverage you need at a price you can afford. Additionally, there are many agencies now that offer features that make it even easier. For instance, in some cases you can compare insurance quotes online. Unlike trying to compare by visiting each site yourself, using one of these tools means that you are comparing apples to apples. Therefore, not only are you paying as little as possible, you are still getting the type of coverage you need. Spend some time researching the options, and then choose an independent agency that will make things easy for you and save you money too. Troy Toth, Farmers National Bank (Associate) 14357 Pearl Road Strongsville, OH 44136 (440) 396-3171 ttoth@farmersbankgroup.com http://farmersbankgroup.com Sponsored by: Tim King, K. Hovnanian Homes
Stacey Yezbak, K. Hovnanian Homes (Affiliate Builder) 3296 Columbia Road Richfield, OH 44286 (440) 823-2485 syezbak@khov.com http://www.khov.com Sponsored by: Tim King, K. Hovnanian Homes Experienced New Home Sales Consultant with a demonstrated history of working in the real estate industry. Strong real estate professional skilled in Sales, Buyer Representation, Marketing Strategy, Listings, and U.S. Federal Housing Authority (FHA). Brett Kopf, Kopf Builders (Builder) 420 Avon Belden Road Avon Lake, OH 44012 (440) 933-6908 bkopf@kopf.net http://www.kopf.net Sponsored by: Mary H. Felton, Guardian Title Buying a new home is one of the most important decisions you will ever make. With so many factors to consider and questions to ask, finding a builder you can trust and depend on is the key. Families and individuals have trusted Kopf Builders to build their dream homes for over 45 years. People choose Kopf because of our superior reputation, premier locations, commitment to quality and excellence.
A True Local Bank – Community-Focused Since 1887 Big banks outgrow their customers. But we never will. Farmers National Bank has always focused on relationships. We’re just the right size, offering all the advantages of a big bank, but with the personal attention and customer service that only comes from a true local bank.
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www.ncbia.com
January 2024
Applying for Membership!
(800) 442-8277 www.hastingsmutual.com
404 E. Woodlawn Ave. Hastings, MI 49058
Nick Yarham, Northern Hammerworks, LLC
Thanks for Renewing! Ed Machovina, Alexis Concrete Enterprise, Inc. Dan Bennett, Bennett Builders & Remodelers
Building Your Business Select Contractors Broadened Coverage
Builders Risk and Installation Floater
Terry Bennett, Bennett Builders & Remodelers Kenneth Brady, Brady Plumbing & Heating
For more information contact:
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.
Theresa Riddell (440) 420-1175
The Nelson Agency, Inc. tmycps@oh.rr.com
“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.
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
Joe Schill, Green Impressions
Coverage on your tools has a limit of $1,000 per tool, to a maximum of $2,500. It also has a $500 deductible.
Tammy Koleski, Howard Hanna Real Estate Tim King, K. Hovnanian Homes
The information referred to is not a policy. Refer to your policy for specific coverage.
© 2019 Hastings Mutual Insurance Company
SS-1 (10/19)
Lee Squire, L&K Construction, Ltd. Scott Kosman, Lakeland Glass Sean Smith, MPW Construction Services Jen Gonzalez, National Design Mart Heather Graves, Paraprin Construction Josh Hammond, Paraprin Construction Bill Perritt, Perritt Building Company
Sorry to See You Go!
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January 2024
NAHB NOW
NEW HIGHER FINES FOR OSHA Violations in Effect for 2024
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BY: BRAD MANNION
iolations of safety rules on jobsites are now more expensive as the Labor Department announced its annual cost-of-living adjustments to OSHA civil penalties for 2024. The new penalty amounts went into effect Monday, Jan. 15. OSHA’s maximum penalties for violations will increase from $15,625 per violation to $16,131 per violation. The maximum penalty for willful or repeated violations will increase from $156,259 per violation to $161,323 per violation. The increases represent an annual increase of around 3.2% from 2023 to 2024, a far cry from the 7.7% increase OSHA announced in penalty increases from 2022 to 2023. The penalty increases are tied to the annual cost-of-living increases across the federal government and to inflation. Visit the OSHA Penalties page and read the final rule for more information. The safety of residential construction workers is a top priority of NAHB and should be the top priority of every builder, remodeler, and contractor. The most common types of construction site injuries are fall injuries. This aligns with OSHA’s most-cited violations on jobsites. Top OSHA violations for fiscal year 2023: 1. Fall Protection – General Requirements: 7,271 violations 2. Hazard Communication (Chemicals): 3,213 3. Ladders: 2,978 4. Scaffolding: 2,859 5. Powered Industrial Trucks: 2,561 6. Lockout/Tagout: 2,554 7. Respiratory Protection: 2,481 8. Fall Protection – Training Requirements: 2,112 9. Personal Protective and Lifesaving Equipment – Eye and Face Protection: 2,074 10. Machine Guarding: 1,644 Protect your workers and your bottom line with free safety resources from NAHB.
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January 2024
EYE ON THE ECONOMY
WHY INDUSTRY Sentiment Is Rebounding
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BY: ROBERT DIETZ
entiment across multiple residential construction sectors is improving as 2024 begins, thanks in part to the Federal Reserve’s signaling late last year that it is done raising interest rates and macro data remaining resilient Remodelers continue to feel positive about market conditions in the face of elevated interest rates. as well. For the fourth quarter, the NAHB/Westlake Royal This growing optimism largely stems from favorable Remodeling Market Index (RMI) — a measure of sentiment demographic headwinds and limited resale inventory. among professional remodelers — posted a reading of 67, Indeed, in the post-Covid period, new NAHB research increasing two points compared to the previous quarter. reveals the share of young adults (ages 25 to 34) who Even though the RMI is down slightly year over year, the live with their parents is posting sustained improvements index remains solidly in positive territory, a trend observed following decades of increase. After registering a near since the second quarter of 2020. Looking forward, NAHB 10% starting point at the turn of the century, the share of expects market conditions to improve throughout 2024 as young adults living with their parents reached a peak of interest rates continue to decline. 22% in 2017-2018. As of the 2022 data, that share has Single-family home building activity will rebound in 2024. fallen back to 19%. This is positive for both for-rent and The December data continue to show the impacts of higher interest rates in the fall of 2023. Single-family starts for-sale housing demand. decreased 8.6% to a 1.03 million seasonally adjusted A limiting factor for younger households attaining annual rate but are up 15.8% compared to a year ago. The homeownership has been available inventory, both resale multifamily sector increased 8% to an annualized 433,000 and new construction. The critically low levels of resale pace for 2+ unit construction in December. Apartment inventory, combined with multi-decade highs for interest construction will weaken this year because of elevated rates, caused the 2023 volume of existing home sales to costs and limited availability for financing. On a year-overpost the lowest level since 1995. As of December, at the year basis, multifamily construction is down 7.9%. current sales rate, unsold inventory sits at a 3.2-month supply. A balanced, efficient market should have a 4.5- to Rising construction costs have held back construction six-month supply. Due to the lack of supply, home prices activity during the post-Covid period. While aggregate continue to rise, driving the median to almost $390,000 in pricing has not declined, the spate of material price growth has slowed. According to the latest Producer Price Index, 2023 — a new record. growth in the average price level of building materials fell New construction can fill the gap. Combined with recent from 15% in 2022 to 1.3% in 2023. On a monthly basis, declines for mortgage interest rates (now averaging less building materials prices rose 0.1% in December after than 6.7% compared to near 8% last October), these increasing 0.1% in November (revised). Monthly price market conditions are supporting gains for home builder increases averaged 0.2% in 2023, down from 1.5% in 2021 sentiment. Builder confidence in the market for newly and 0.7% in 2022. Our forecast does see higher lumber built single-family homes climbed seven points to 44 in costs as single-family home building rebounds. January, according to the NAHB/Wells Fargo Housing Market Index. This second consecutive monthly increase From the big picture inflation perspective, consumer price in builder confidence closely tracks with a period of falling growth has slowed but is not yet at the Fed’s monetary policy target of 2%. Overall inflation has moderated by interest rates. nearly half, declining from 6.5% in 2022 to 3.4% by the Even as mortgage rates have fallen below 7% over the end of 2023. However, even after peaking in March 2023, past month, many builders continue to reduce home shelter costs continue to put upward pressure on inflation, prices to boost sales. In January, 31% of builders reported accounting for more than two-thirds of the inflation gains. cutting home prices, down from 36% during the previous For this reason, policymakers must reduce regulatory costs two months and the lowest rate since last August. The associated with home and apartment construction, thereby average price reduction in January remained at 6%, increasing supply and taming shelter inflation as part of the unchanged from the previous month. Meanwhile, 62% of overall fight again inflationary price growth. builders offered some form of sales incentive in January. This share has remained between 60% and 62% since October.
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EYE ON THE ECONOMY
MACRO DATA INDICATE Home Building Growth in 2024
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BY: ROBERT DIETZ
eceding mortgage interest rates, expectations for Federal Reserve monetary policy easing, and weakening (but still solid) macroeconomic data are shaping a market environment that should enable single-family home construction expansion in 2024. With peak interest rates In contrast to the overall labor market, the number of job for this cycle now in the rearview mirror, bond investors openings in construction is increasing. The count of open are looking to lock in rates, setting the stage for gradual construction jobs increased to 459,000 in November after declines of long-term interest rates in the quarters ahead. a revised reading of 416,000 in October. The count was Indeed, since late October — when the 10-year Treasury 348,000 a year ago, during a period of housing market touched 5% for the first time since 2007 — mortgage rates cooling. The recent rise indicates an ongoing skilled labor have fallen back by more than 110 basis points to just shortage for the construction sector. As the home building market expands in 2024 (with the exception of apartment above 6.6%. construction), the construction labor market will tighten As rates move lower in fits and starts over the coming year, further. more housing demand will be priced back into the market. This should boost new home sales volume in the near term. The Census Bureau’s November data for new sales showed weakness because of the prior peak for rates, with contracts down more than 12% at a 590,000 annualized rate. Despite the challenging conditions in the fall, sales were up more than 3% on a year-to-date basis. However, new home inventory is rising, which will dilute some of the effect of the future increases for demand as rates move lower. Existing home inventory should rise in 2024 as the “mortgage rate lock-in effect” eases somewhat. Labor market data continue to be solid, which is a positive for both for-sale and for-rent housing demand. In December, payroll employment increased by an above-forecasted count of 216,000. The unemployment rate held steady at a 3.7% rate. NAHB expects slowing employment growth ahead, but the unemployment rate should remain below 5% as the macro cycle turns a corner. However, because of tightened monetary policy, the count of total job openings for the economy continues to move lower. In November, the number of open jobs declined to 8.8 million. This is notably lower than the 10.8 million reported a year ago. NAHB estimates indicate that this number must fall back below 8 million for the Federal Reserve to feel more comfortable about labor market conditions and their potential impacts on inflation.
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January 2024
2024 Installation Night
PHOTO GALLERY
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LEGISLATIVE REVIEW
2023 OHBA YEAR IN REVIEW OHBA PETITION FOR CHANGES TO OHIO PLUMBING CODE APPROVED BY BOARD OF BUILDING STANDARDS After working with the Central Ohio BIA and concerned builders and plumbers, OHBA submitted an official petition to the BBS urging a change to the Ohio Plumbing Code requirements currently mandating disinfection by chlorination in every new 1,2,3 family dwelling. While the provisions had been in the OPC for years, only recently, local health departments indicated the provisions would be mandated for both commercial and residential construction. As a result, OHBA petitioned the BBS to modify the OPC requirements as applied to 1, 2, 3. The Residential Construction Advisory Committee gave the petition unanimous support, and the BBS voted to approve the changes. The approval of the OHBA petition will prevent jurisdictions from enforcing the OPC 610 provisions in residential dwellings. OHBA OFFICERS PARTICIPATED ON STATEHOUSE HOUSING PANEL OHBA partnered with the Ohio Chamber, Ohio Apartment Association, and Ohio REALTORS to host a Statehouse Housing Panel at the beginning of 2023. Legislators in attendance were able to hear first hand many of the challenges Ohio faces in increasing its housing supply. OHBA SUPPORTED VARIOUS APPROACHES TO ADDRESS HOUSING SHORTAGE As the budget process included some much-needed focus on housing, several approaches were being presented and discussed in the House and Senate as the response to the housing need. OHBA continued to urge those involved to look at the impact of regulation and land development costs. OHBA strongly supported the provisions addressing the increased property taxes on subdivided residential property and changes to referenda signature requirements added to the budget (HB 33). Additionally, OHBA recognized the importance of two other proposals: State Low Income Housing Tax Credit and Single-Family Housing Development Tax Credit. OHBA SUCCESSFUL IN GETTING PASSAGE OF PROPERTY TAX RELIEF FOR RESIDENTIAL DEVELOPMENT LAND After being vetoed in the last budget attempt, OHBA successfully got the new provisions included in the recent budget and enacted into law. The new law exempts from property tax the value of unimproved land subdivided for residential development in excess of the purchase price of the property from which that land was subdivided for up to eight years, or until construction begins or land is sold. REFERENDA SIGNATURE REQUIREMENT INCREASED OHBA was key in making statutory changes modifying ORC 519.12, 519.25 to increase the number of signatures required to place a question of whether to repeal a township zoning plan on the ballot for electors to vote on from not less than 8% to 15%. OHBA ASKED TO TESTIFY AT INTIAL HEARING OF THE OHIO SENATE SELECT COMMITTEE ON HOUSING The Senate invited the Ohio Home Builders Association (OHBA) to participate in the initial hearing of its Select Committee on Housing. Executive Vice President, Vince Squillace, presented the state of housing in Ohio, having been underbuilt for decades. After further illustrating the challenges faced by home builders and land developers, he continued to explain the areas needing attention and review: zoning, density, and development standards. OHBA PUSHED FOR MORE DETAILS ON IMPLEMENTATION OF RESIDENTIAL DEVELOPMENT PROPERTY TAX ASSESSMENT CHANGES OHBA met with legislators and the Ohio Department of Taxation to discuss updates on the status of the application process established in HB 33 making changes to Ohio Revised Code 5709.56. The new provisions exempt from property tax the value of unimproved land subdivided for residential development in excess of the most recent sale price from which that land was subdivided. page 32
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LEGISLATIVE REVIEW
U.S EPA AND ARMY CORP ISSUE REVISED WOTUS RULE As a result of the U.S. Supreme Court’s Sackett decision, the Environmental Protection Agency and U.S. Army Corps of Engineers issued a revised, final waters of the United States (WOTUS) rule under the federal Clean Water. OHBA provided information to members on the impact of the rule on permitting in Ohio. OHBA JOINED IN EFFORTS TO ADDRESS ISSUES WITH BUFFALO DISTRICT OHBA joined efforts urging action to address issues with the Army Corp of Engineers Buffalo District. Industry groups and numerous members of the Ohio Congressional Delegation signed on in support of consolidating Ohio under one district to combat ongoing issues. COMMENTS SUBMITTED ON OHIO HOUSING FINANCE AGENCY’S SINGLE-FAMILY PROGRAM Even before the new single-family tax program was enacted into law, OHFA and Governor DeWine’s staff reached out to OHBA for feedback on the proposed tax credit program. Following the passage of the proposal, OHBA continued to engage in providing comments and information on the costs of construction. ANNUAL MEETING WITH BUREAU OF WORKERS COMPENSATION ASSOCIATION REPRESENTATIVE OHBA held its required meeting with the BWC Association representative on its group rating program, as well as, all other products and services offered by the Bureau. SPONSORS OF LEAD RENOVATION, REPAIR AND PAINTING RULE PROPOSAL LOOK TO OHBA FOR INSIGHT Legislators set to sponsor a bill authorizing the ODH Director to enter into agreements with the U.S. Environmental Protection Agency (USEPA) for the administration and enforcement of the federal Renovation, Repair, and Painting (RRP) Rule reached out to OHBA for insight into the proposal. Under the RRP Rule, firms performing renovation, repair, and painting projects that disturb lead-based paint in homes, child care facilities, and pre-schools built before 1978 must be certified by USEPA (or a USEPA-authorized state), use certified renovators who are trained by USEPA-approved training providers, and follow lead-safe work practices. OHBA SIGNED ON TO LETTER IN OPPOSITION OF DESIGNATION FOR BIG DARBY OEPA officially considered stopping future Darby Watershed development with a potential new designation of the Darby watershed as "Outstanding National Resource Waters". OHBA engaged the Common Sense Initiative (CSI) anticipating the OEPA’s action, and signed on to a letter in opposition to such designation stopping development in the watershed. OHBA FILED MULTIPLE AMICUS BRIEFS IN REMODELING CSPA CASES OHBA defended the intent of the Home Construction Service Suppliers Act (HCSSA) in two amicus briefs filed with the Ohio Supreme Court in Ilia Beder, et al., v. Cerha Kitchen and Bath Design Studio, LLC et al. and Estate of Tomlinson v. Mega Pool Warehouse, Inc., 2023-Ohio-229. Along with potential legislative fixes, OHBA participated in the legal process asking the Ohio Supreme Court to take jurisdiction of the cases to clarify remodeling is covered under the HCSSA if over $25,000. OHBA CONTINUED STRONG REPRESENTATION ON BUILDING CODE BOARDS Both the Residential Construction Advisory Committee (RCAC) and Board of Building Standards (BBS) include active members of OHBA engaging in the code review and adoption process. OHBA REPRESENTED INDUSTRY IN ONGOING STREAM MITIGATION RULES PROCESS With the passage of HB 175 removing ephemeral streams from waters of the state, the legislation also instructed the OEPA to adopt rules for stream mitigation. OHBA was involved in the beginning stakeholder process and continued to work with stakeholders in providing feedback on the proposed rule including the assessment tool proposal. January 2024
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LEGISLATIVE REVIEW
CONTINUED ENGAGEMENT WITH UTILITY PARTNERS Throughout the year, OHBA met with numerous utilities, both gas and electric, to engage the groups on potential development standards or ways to provide more consistent expectations. Additionally, OHBA worked with the Public Utility Commission (PUCO) to explore what comes under its authority. OHBA FACILITATED COMMUNICATION WITH UTILITIES ON TRANSFORMER SHORTAGE AND CONDUIT REQUIREMENTS Responding to member concerns with transformer availability, OHBA connected builders with contacts at the utilities to help address timing issues and development plans. Further, several members help regular meetings with the utility to work through onerous conduit requirements. BOARD OF BUILDING STANDARDS ASKED OHBA FOR FEEDBACK ON BUILDING DEPARMENT RULES The Chairman and members of the Ohio Board of Building Standards (BBS) took a fresh look at the rules and procedures governing Ohio’s building officials and building codes. The BBS reached out to OHBA to hear comments/suggestions on addressing building department staffing shortages and the ability of departments to provide code enforcement services. The BBS reached out to OHBA to help the Board obtain valuable feedback/suggestions from entities such as, private developers, and contractors as they are impacted by the same issues facing building departments. OHBA AIDS IN PRESERVING AMENDMENTS TO NATIONAL ELECTRIC CODE OHBA and its members on the RCAC, insisted on the proper review and analysis of the petition to update to the 2023 NEC. The committee, after review and analysis based on statutory considerations, sent its recommendations to the Board of Building Standards with amendments. Even after being challenged by proponents of the NEC, the members of the RCAC all agreed proper review and analysis had been done based on cost, technical feasibility, and safety considerations. After a heated discussion with the electrical industry, the RCAC remained firm in its decision and sent the 2023 NEC with Ohio amendments back to the BBS. SKILLSUSA OHIO TEAMWORKS SPONSORSHIP AND PARTICIPATION OHBA continued to be the main sponsor for the SkillsUSA Teamworks competition which brought an impressive turnout of young men and women competing in the various construction trades. Several OHBA past presidents served as judges and volunteered throughout the competition. REVIEW AND ADOPTION OF MINIMUM QUANTIFIABLE STANDARDS UPDATES As the adopting body of the workmanlike standards for the industry, OHBA reviewed and adopted the Sixth Edition of the Minimum Quantifiable Standards. CONTINUING AGENCY AND LEGISLATIVE FOLLOW UP While agency issues are always ongoing, many of the legislative issues from 2023 will likely continue into the new year. Throughout the year, OHBA received questions from around the state on enforcement of multiple regulations, including, but not limited to utility, environmental and plumbing issues. OHBA provided valuable insight and contacts to help mitigate issues brought to OHBA’s attention. MONITORED LEGISLATION HB 129 Commercial Roofing Contractors, HB 187 Property Taxes, HB 203 Construction Projects, SB 1 Department of Education, SB 41 Building Inspections, SB 76 Landlords, SB 119 Solid Waste and Debris,
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January 2024
LEGISLATIVE REVIEW
JANUARY 3, 2024 REPORT #1 LEGISLATIVE UPDATE SENATE SELECT COMMITTEE ON HOUSING HEADED TO CLEVELAND AS MEETINGS WRAP UP The Senate Select Committee is on tour and heading to the Northeast Region of the State; Cleveland, Ohio. OHBA President, Enzo Perfetto will be testifying on behalf of OHBA bringing his experience as a builder to reiterate the impact of regulation and the importance of private development in the critical lack of housing supply. Please see the attached notice from the Senate Select Committee on Housing. The committee is scheduled to convene at the following time and location: Date: Thursday January 11, 2024 Time: 10:00 AM Location: The Cleveland Foundation- 6601 Euclid Ave, Cleveland, OH 44103 We are pleased to inform you that this hearing will be open to the public, offering an opportunity for engagement and participation. To ensure efficient proceedings, please be aware that all testimony and witness slips must be submitted no later than Tuesday January 9, 2024 at 5pm in advance of the committee meeting to the Chairwoman’s office at Chloe.Green@ohiosenate.gov The Committee will head back to Columbus to finish up its work and issue its report and recommendations to the legislature. As the committee hears from various stakeholders, OHBA is working to maintain focus on the impact of regulation and the importance of the private side of providing housing for Ohio. As the Committee begins to generate its report and recommendations, OHBA will provide a list of recommendations, including but not limited to line extension costs, building code review, land development standards, referenda, and zoning reform, among others. JANUARY 25, 2024 REPORT #2 LEGISLATIVE UPDATE DTE 23 FORM FOR USE TO APPLY FOR TAX PRE-RESIDENTIAL DEVELOPMENT PROPERTY https://tax.ohio.gov/static/forms/real_property/dte_dte23_fi.pdf While OHBA is currently working to clarify the intent of the recently enacted provisions and eliminate a potential lengthy exemption approval process through the Ohio Department of Tax, the exemption is available today. The appropriate application has been attached and can also be found at the link above. Revised Code 5709.56 exempts from property tax the value of unimproved land subdivided for residential development in excess of the most recent sale price from which that land was subdivided for up to 8 years, or until construction begins or the land is sold. Feel free to contact OHBA with any questions or concerns.
January 2024
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EYE ON HOUSING
PANDEMIC SILVER LINING:
Young Adults Moving Out of Parental Homes
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espite record high inflation rates, rising interest rates, and worsening housing affordability, young adults continued the post-pandemic trend of moving out of parental homes in 2022. The share of young adults ages 25-34 living with parents or parents-in-law declined and now stands at 19.1%, according to NAHB’s analysis of the 2022 American Community Survey (ACS) Public Use Microdata Sample (PUMS). This percentage is a decade low and a welcome continuation of the post-pandemic trend towards rising independent living by adults ages 25-34. Traditionally, young adults ages 25 to 34 make up around half of all first-time homebuyers. Consequently, the number and share of young adults in this age group that choose to stay with their parents or parents-in-law has profound implications for household formation, housing demand, and the housing market. The share of adults ages 25 to 34 living with parents reached a peak of 22% in 2017-2018. Even though an almost three percentage point drop in the share since then is a welcome development that the housing market has been waiting for, the share remains elevated by historical standards, with almost one in five young adults in parental homes. Two decades ago, less than 12% of young adults ages 25 to 34, or 4.6 million, lived with parents. The current share of 19.1% translates into 8.5 million of young adults living in homes of their parents or parents-in-law.
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BY: NATALIA SINIAVSKAIA
Stacking our estimates of the share of young adults living with parents against NAHB/Wells Fargo’s HOI data reveals that until the pandemic, the rising share of young adults living with parents had been associated with worsening affordability. Conversely, improving housing affordability, had been linked with a declining share of 25–34-year-old adults continuing to live in parental homes. The strong negative correlation disappeared in the post-pandemic world, with young adults continuing to move out of parental homes despite worsening housing affordability and rising cost of independent living. The “excess” savings accumulated early in the lockdown stages of the pandemic, when spending opportunities were limited, undoubtedly helped finance the move-out trend. Will the trend continue once young adults drain their “excess” savings? The NAHB forecast highlights strong labor market conditions and expectations for receding mortgage rates that should improve housing affordability in the near future. Combined with the desire for more spacious, independent living heightened by the COVID-19 pandemic, these factors should help sustain the trend towards rising independent living of young adults even after their excess savings are depleted.
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January 2024
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Husted Announces High School Tech Internship Now Open for Ohio Students Ohio Lt. Governor Jon Husted, who serves as Director of the Governor’s Office of Workforce Transformation, today announced that the High School Tech Internship program is now open for Ohio students to enroll. The goal of the program is to provide Ohio businesses with the tech talent they need while providing students with valuable work experience at an early age. “Tech internships for Ohio students offer invaluable real-world experience, providing insights into various local businesses and career paths,” said Lt. Governor Husted. “Many high school students demonstrate readiness for work, making these internships a valuable tool for identifying talented young individuals that companies can recruit.” To enroll in the program, individual students or school districts must contact the intermediary in their region to be connected to a business that is hosting an internship experience.
View High School Tech Internship Intermediaries Here Interns will perform job duties similar to what is expected of an entry-level employee in technology roles that focus on software development, data, cloud and IT infrastructure, cybersecurity, broadband/5G, advanced mobility, and other techfocused roles. Ohio employers hosting interns will be reimbursed up to 100 percent of the wages paid to interns (up to $5,000 per intern). Employers are also eligible to earn bonuses for each student who earns certain industry-recognized credentials. Interested businesses can contact the intermediary in their region to apply to host summer interns. “Ohio is committed to helping students explore career options through meaningful learning experiences that connect them to our state’s workforce needs,” said Stephen D. Dackin, Director of the Ohio Department of Education and Workforce. “The High School Tech Internship empowers students to advance their learning beyond the classroom in real-world settings, while developing skills in technology-focused roles they can use now and in their future careers.” High School Tech Internship intermediaries allow the program to be administered seamlessly between schools and businesses. Intermediaries have several responsibilities to support the growth and administration of the internship program, including helping place students with participating employers. “The High School Tech Internship Program not only bridges the skills gap for Ohio businesses but also cultivates a pipeline of homegrown talent, empowering our high school students with real-world experience and helping them realize the great career opportunities available in Ohio,” said Lydia Mihalik, director of the Ohio Department of Development. “It’s a win-win, shaping the future of our workforce and bolstering the innovation that drives economic growth.” Last year's High School Tech Internship program created the opportunity for 510 Ohio students to participate in internships with 141 employers across the state. For more information on the program, click here.
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January 2024
NAHB NOW
BULDER SENTIMENT SURGES on Failing Interest Rates
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BY: ELIZABETH THOMPSON BY: STEPHANIE PAGAN
ortgage rates well under 7% over the past month have led to a sharp increase in builder confidence to begin the new year. Builder confidence in the market for newly built singlefamily homes climbed seven points to 44 in January, according to the National Association of Home Builders Even as mortgage rates have fallen below 7% over the past (NAHB)/Wells Fargo Housing Market Index (HMI) released month, many builders continue to reduce home prices to today. This second consecutive monthly increase in builder boost sales. In January, 31% of builders reported cutting confidence closely tracks with a period of falling interest home prices, down from 36% during the previous two months rates. and the lowest rate since last August. The average price “Lower interest rates improved housing affordability reduction in January remained at 6%, unchanged from the conditions this past month, bringing some buyers back previous month. Meanwhile, 62% of builders provided sales into the market after being sidelined in the fall by higher incentives of all forms in January. This share has remained borrowing costs,” said NAHB Chairman Alicia Huey, a stable between 60% and 62% since October. custom home builder and developer from Birmingham, Ala. Derived from a monthly survey that NAHB has been “Single-family starts are expected to grow in 2024, adding conducting for more than 35 years, the NAHB/Wells Fargo much needed inventory to the market. However, builders HMI gauges builder perceptions of current single-family will face growing challenges with building material cost home sales and sales expectations for the next six months and availability, as well as lot supply.” as “good,” “fair” or “poor.” The survey also asks builders “Mortgage rates have decreased by more than 110 basis to rate traffic of prospective buyers as “high to very high,” points since late October per Freddie Mac, lifting the future “average” or “low to very low.” Scores for each component sales expectation component in the HMI into positive are then used to calculate a seasonally adjusted index territory for the first time since August,” said NAHB Chief where any number over 50 indicates that more builders Economist Robert Dietz. “As home building expands in view conditions as good than poor. 2024, the market will see growing supply-side challenges All three of the major HMI indices posted gains in January. in the form of higher prices and/or shortages of lumber, The HMI index charting current sales conditions increased lots and labor.” seven points to 48, the component measuring sales Even as mortgage rates have fallen below 7% over the expectations in the next six months jumped 12 points to 57 past month, many builders continue to reduce home and the component gauging traffic of prospective buyers prices to boost sales. In January, 31% of builders reported rose five points to 29. cutting home prices, down from 36% during the previous Looking at the three-month moving averages for regional two months and the lowest rate since last August. The HMI scores, the Northeast increased four points to 55, the average price reduction in January remained at 6%, South increased two points to 41, the West registered a unchanged from the previous month. Meanwhile, 62% of one-point gain to 32 and the Midwest held steady at 34. builders provided sales incentives of all forms in January. HMI tables can be found at nahb.org/hmi. More information This share has remained stable between 60% and 62% on housing statistics is also available at Housing Economics since October. PLUS (formerly housingeconomics.com). Derived from a monthly survey that NAHB has been conducting for more than 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.
January 2024
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RESIDENTIAL LIENS FOR SUBS
MECHANIC'S LIENSAre they really Useful for Subs? Generally a contractor’s or subcontractor’s biggest risk on construction projects is payment. Cash flow is your life blood for a project, and many times we just keep working on the if-come that our customer will pay. Inevitably they don’t, and you need to take action. One weapon in your arsenal is a mechanic’s lien. A lien is a claim against the project owner’s real property for the unpaid balance for your work performed, or material or equipment provided to the project. For residential projects in Ohio (e.g., single- or two-family homes and residential condo units), a subcontractor or supplier can lien the project within 60 days of its last day of work or delivery of material. Not much time, and it requires being organized and committed. (You also have to “serve” the lien on the owner within 30 days of filing the lien…) However, the law in Ohio (R.C. 1311.011(B)) provides that no contractor, subcontractor, or supplier can have a lien on a project on which the owner has paid the builder / first-tier contractor in full under their contract, and payment was made prior to the owner receiving the lien. That means that if the owner pays her builder or remodeler in full but he doesn’t use that money to pay you, as a sub or supplier, you can’t lien the owner’s property. We get the same result if (a) the builder or remodeler folds or gets removed from the project by the owner, (b) the owner was current on payment to the contractor at that time, and (c) the cost to complete the project is equal to or exceeds the balance of the project. How is that justice for contractors? Well, the General Assembly decided years ago that it wanted to first-andforemost protect the homeowner. It prioritized the interests of the homeowner over the folks that actually do the work or provide the material that goes into building a house. Fair or not, that is the law and we’re stuck with it. So are mechanic’s liens any good for subs or suppliers? Yes, they are. The reality is that in real time, you don’t know the status of the contract and payments between owner and builder. So if you’re not getting paid, you have to do what is necessary (and legal…) to secure your rights. That includes timely filing and serving a valid mechanic’s lien. Sometimes that’s a result of an owner who just stops paying. If you later learn that the owner did everything she was supposed to do, and your customer just took your money (and that is documented), then you may need to release that lien and go after your customer alone. So how do you prevent this from happening? Much like a lot of bad things that happen in life, there’s no way to completely prevent these results. That said, there are some tools to mitigate against not being paid and having no security.
Contact us to discuss your legal needs:
Serving the construction industry - contractors, subcontractors, suppliers, builders and owners throughout Ohio and surrounding areas.
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440-534-6733
phil@truaxlawgroup.com
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January 2024
RESIDENTIAL LIENS FOR SUBS
MECHANIC'S LIENSAre they really Useful for Subs? 1. Pay attention! Sometimes word gets around about your customer not paying his bills, having issues with other jobs (including your project), etc. Speak up, take action, protect your take. 2. Know the owner. You can’t (and shouldn’t) interfere with your customer’s own relationship with the owner. But you can introduce yourself, let the owner know who’s installing their trim (or whatever), and thank them for the opportunity. Then if and when your customer falls behind on payment, you have a channel to ask questions – which will set off an alarm for the owner, and may stop or soften the blow from your customer not paying. 3. Require lien waivers, for yourself. Huh? Yes. A lot of banks require lien waivers, and some sophisticated homeowners require lien waivers from subs and first tier suppliers. (Lien waivers = signing a waiver of lien rights and submitting the waiver with your invoice in exchange for payment.) Lien waivers are simple forms that can be prepared and submitted with your invoices. The point is documenting payments and lien rights from your perspective. If there’s a bank, the builder-remodeler almost certainly has to submit lien waivers and affidavits of payment as part of his draw requests. (The law requires it.) With lien waivers from subs as well, there’s added documentation available for review by the owner and/or bank that needs to be accounted for. 4. Asking for joint checks. I know – construction is a relationship business, and telling your customer that you’d like to be paid via joint checks (payable to both builder and subcontractor) suggests you don’t trust him. But subs and suppliers that have been bit have to take action to protect themselves. And many residential contracts in the current market are already cost-plus or T&M contracts, So your costs are being disclosed to the owner anyway. 5. Have a good contract or proposal form that protects your company against non-payment, and covers your costs and damages resulting from non-payment, including increased interest, financing charges, and legal fees. 6. Participating in industry discussions in the community, including with local banks. The banks already have to gather affidavits of payment from the builder or remodeler as part of the draw schedule (an affidavit stating he’s paid in full for all work and materials, or listing specific unpaid claims). And banks do not want liens filed against their borrower’s real estate. So in most circumstances, it is not a huge adjustment for banks to require lien waivers from subs and suppliers as well. 7. Choose your customers wisely. Many subs and suppliers do not have this luxury, I get it. In the service industry, we need customers, and some are better than others. But as business owners, we have an obligation to our company, our employees, and ourselves to know when to say “no thanks” to certain customers. Know who they are, and stay away. Again, there’s no easy solution to the “mechanic’s lien problem” for subcontractors and suppliers on residential jobs. But developing and implementing a few processes can go a long way to prevent a big loss on a future project because of a customer that’s run into problems or who’s only looking out for themselves. Give us a call if you’d like some help with some of these strategies and forms above.
January 2024
www.ncbia.com
page 53
Now is the time for your Builder and Remodeler Members to claim for Q4’23. Builder and Remodeler Members may claim for manufacturer rebates for residential jobs completed between October 1 through December 31, 2023.\ Q4’23 Claiming Deadline is Friday, February 16, 2024 Q4’23 is also the last opportunity for builder members to claim for residential jobs completed in 2023. Any builder who has not yet participated by registering and submitting a rebate claim is welcome to claim for all residential jobs completed January 1 through December 31, 2023. There are some additional manufacturers who have joined in participation so far in 2023. Builder members are encouraged to claim their rebates with the following manufacturers in an effort to increase their HBA Rebates total. • • • • • • •
Genie Garage Door Openers Simpson Strong-Tie Structural Connectors GAF Roofing Honeywell Home (Air Quality, Smart Home Controls, Thermostat, Water Solutions, and Zoning) Kidde Fire Safety (Smoke and Carbon Monoxide Alarms) Panasonic Ventilation (Panasonic Bath Fans and Swidget Smart Switch, Outlet, and Inserts) Westlake-Royal Building Products (Including: Exterior Portfolio, Royal Siding, Trim, Moulding and Shutters, Portsmouth Shakes and Shingles, Celect Siding, and American Premium Shutters) Along with dozens of others that have participated for years! Personalized assistance is available. Please reach out to the HBA Rebates Team with any questions. https://hbarebates. com/aboutus Claim Today, Don’t Delay! www.HBArebates.com/claimform Q4’23 Claim Deadline: Friday, February 16, 2024 Claim for Residential Jobs Completed October 1 through December 31, 2023. As well as Residential Jobs Completed January 1 through December 31, 2023 for any builder who has not yet participated. Please share with your builder and remodeler members. Let me know how I can be of the best assistance. Thank You For Your Support! Kim Klein HBA Rebates www.HBArebates.com Office - 732-612-3865 Mobile - 732-859-1935
Exclusive Entertainment Discounts! Members have access to huge savings on nationwide entertainment through MemberDeals. Find exclusive discounts, special offers, preferred seating, and tickets to top attractions, theme parks, shows, sporting events, hotels, and much more. • Save up to 40% on Top Theme Parks Nationwide
• Huge Savings on Disney & Universal Studios Tickets
• Save up to 60% on Hotels Worldwide
• Preferred Access Tickets™ Find great seats to your favorite concerts, sports and more!
• Save up to 40% on Top Las Vegas & Broadway Show Tickets
Please visit https://memberdeals.com/nahb/?login=1
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 25¢ PER GALLON!†
• Save 5¢ per gallon at Speedway locations* • Over 3,400 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 25¢ discount.
†Limited time offer valid for new Speedway SuperFleet Mastercard applications received from 3/7/2022 through 12/31/2022. New approved accounts will earn 25 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 $500. 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. **Please see Client Agreement – at www.fleetcor.com/terms/superfleet-mc – for rate, fee and other cost and payment information. 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. © 2022 FLEETCOR, P.O. Box 1239, Covington, LA, 70434.
LIMITED TIME OFFER!
Earn 30¢
per gallon for the first three months once you reach 100 gallons in each calendar month. Thereafter, save 6cpg for every gallon pumped.*
The 7-Eleven Commercial Fleet Mastercard Fleet Savings Made Easy Perfect fit for mid-sized to larger fleets that need the added convenience of fueling where Mastercard® is accepted. With the 7-Eleven Commercial Fleet Mastercard®, your fleet can customize reports for a complete fuel management solution.
Rebates & Savings
Security & Fraud Controls
Online Control & Visibility
Earn 30¢ per gallon for the first three months once you reach 100 gallons in each calendar month. Thereafter, save 6cpg for every gallon pumped.*
Enjoy the security of advanced card prompts.
Set card controls and access detailed reporting online anytime.
Earn 30¢ per gallon for the first three months once you reach 100 gallons in each calendar month. Thereafter, save 6cpg for every gallon pumped.* Customize and download cost and performance reports monthly or in real-time. Monitor transactions and manage your account online, in real-time. Use card prompts to help prevent misuse. Simple online access. Accepted at your favorite 7-Eleven & Speedway locations and anywhere Mastercard is accepted, regardless of fuel brand.**
Contact your sales representative today! Name
Holden Moll
Phone
760.918.5933
holden.moll@fleetcor.com
*Limited time offer for new 7-Eleven Commercial Fleet Mastercard applications received from 12/04/2023 through 2/29/2024. Once gallons purchased at 7-Eleven and Speedway locations in a calendar month reach 100, earn a 30¢ per gallon rebate on every gallon purchased at 7-Eleven & Speedway locations in each such calendar month for the first three months after account setup. The maximum promotional rebate in any one-month period is $1,200. To receive rebates, invoice must be paid in full and on time. Rebates will not apply to returns or chargebacks. Standard 6 cents per gallon rebate offer valid for first 6 months after account setup. **Fuel purchases at locations other than 7-Eleven or Speedway locations are subject to an out-of-network transaction fee. Please see Client Agreement – at www.fleetcor.com/terms/7-Eleven-mc – for rate, fee and other cost and payment information. The 7-Eleven Commercial Fleet Mastercard® is issued by Fifth Third Bank, National Association, pursuant to a license by Mastercard International Incorporated. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. ©2024 FLEETCOR, P.O. Box 1239, Covington, LA, 70434.
The 7FLEET Diesel Network Mastercard® Fueling your fleet for the road ahead. Perfect for diesel fleets that rely heavily on high speed truck diesel lanes for fuel. The 7FLEET Diesel Network Mastercard offers significant discounts on diesel at the over 260 locations that make up the 7FLEET Diesel Network as well as discounts on commercial truck lane diesel across the AMBEST network. *
Save an average of Network Discounts Save an average of 53cpg on truck diesel lane gallons fueled in the 7FLEET Diesel Network.*
Security & Fraud Controls
Online Control & Visibility
53¢
Enjoy the security of advanced card prompts.
Set card controls and access detailed reporting online anytime.
on truck diesel lane gallons fueled in the 7FLEET Diesel Network.
per gallon*
Customize and download cost and performance reports monthly or in real-time. Monitor transactions and manage your account online, in real-time. Use card prompts to help prevent misuse. Simple online access. Accepted at your favorite 7-Eleven & Speedway locations and anywhere Mastercard is accepted, regardless of fuel brand.**
Contact your sales representative today! Name
Holden Moll
Phone
1-760-918-5933
holden.moll@fleetcor.com
*Average savings of 53 cents per gallon in the 7FLEET Diesel Network based on actual 7FLEET Diesel Network client transactions for Q4 of 2022. Visit www.7fleetnetwork.com/locations for a full listing of 7FLEET Diesel Network sites. Truck lane diesel transactions made with the 7FLEET Diesel Network Mastercard at AMBEST Travel Center locations will receive a Cost Plus discount when purchased at the truck lanes. Visit https:// am-best.com/Travel-Centers/Location-Map for a full listing of AMBEST sites. Not valid on unleaded, aviation, bulk fuel, propane, natural gas, or non-truck lane diesel purchases. **Please see Client Agreement – at www.fleetcor.com/terms/7-Eleven-dn – for rate, fee and other cost and payment information. Fuel purchases at locations other than 7-Eleven or Speedway locations are subject to an out-of-network transaction fee. The 7FLEET Diesel Network 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. © 2023 FLEETCOR, P.O. Box 1239, Covington, LA, 70434.
7-Eleven Fleet Card Program Application Please send the application to
holden.moll@fleetcor.com
7-Eleven Commercial Fleet Mastercard ® 7FLEET Diesel Network Mastercard ®
SELECT CARD*
7-Eleven Commercial Fleet Mastercard
7FLEET Diesel Network Mastercard
BUSINESS INFORMATION – Required. Legal Company Name (limit to 28 characters)*
Subsidiary or DBA (limit to 20 characters)
Create a 5 Digit Account Security Code (Required for card activation & customer service needs)*
Primary Contact First Name*
Last Name*
Title*
Card Delivery Street Address 1 (No PO boxes)*
Card Delivery Street Address 2
City*
State*
ZIP*
Company Billing Street Address 2 (If different from card delivery address)
Company Billing Street Address 2
City
State*
ZIP
Business Phone #*
Cell Phone#
Fax #
Type of Business*
Estimated Monthly Charges/Spending ($)* Estimated Monthly Gallons*
Statement Delivery Method:
☐Electronic
☐ Paper
Years of Business*
# of Vehicles*
Email Address*
Full Time Employees*
# of Drivers*
# of Cards Needed*
Site ID#*
Tax ID#*
Type of Organization*– If your organization is any type other than Sole Proprietorship, Public Corporation, or Government & Education, you must complete the Business Owner Section below. ☐ Sole Proprietorship ☐ Partnership ☐ Public Corporation ☐ Private Corporation ☐ Non-Profit ☐Government & Education ☐ LLC ☐LLP NOTE - At FLEETCOR’s discretion, we may require CPA Reviewed or Audited Financial Statements during the Credit review.
AUTHORIZED REPRESENTATIVE – Required.
Application Terms: By signing this Application, the Authorized Representative represents, warrants, and agrees that: (a) he or she is authorized to apply to FLEETCOR TechnologiesOperating Company, LLC (“FLEETCOR”), a Louisiana limited liability company, for an unsecured, partially secured, or fully secured line of credit (“Account”) on behalf of the company identified above (“Client”); (b) FLEETCOR may obtain Client’s credit report and check Client’s credit standing when processing this Application or periodically evaluating any resulting Account’s creditworthiness; (c) this Application is subject to approval and acceptance by FLEETCOR; (d) if the Application is approved by FLEETCOR in Louisiana, the resulting Account: (i) will be governed by Louisiana law; (ii) will not be a revolving credit account and the Amount Due/Total Amount Due shown on each Account Statement will be due and payable on the Due Date shown on the Statement; (iii) will be used solely for commercial purposes and not for personal or household purposes; (iv) will be suspended, and the Client’s redit history may be reported to credit reporting agencies, if the Client’s unpaid balance ever meets the Account’s Credit/Spend Limit; and (e) acceptance, signing (in whatever form), or use of any of the Cards issued to Client will constitute Client’s acceptance of the Client Agreement available at www.fleetcor.com/terms/7-Eleven-mc or www.fleetcor.com/terms/7-Eleven-dn Equal Credit Opportunity Act Notice. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided that the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliancewith this law concerning this creditor is the Federal Trade Commission, Equal Credit Opportunity Act, Washington, D.C. 20580.
FLEETCOR considers your privacy important. View our privacy policy available at www.fleetcor.com/privacy-policy to find out more. I agree to the Application Terms and the Client Agreement (Please check box) ☐
BUSINESS OWNER(S) / PERSON WITH SIGNIFICANT MANAGEMENT RESPONSIBILITY – Required.
To help fight financial crimes, the U.S. Department of Treasury require financial institutions to obtain, verify, and record information about beneficial owners of entities opening accounts. Beneficial owners are persons who, directly or indirectly, own 25% or more of the entity. We may use third-party resources to verify your identity. For questions about this regulation and how FLEETCOR uses and protects this data, please speak with your sales representative. Patriot Act Notice. Section 326 of the USA PATRIOT Act mandates that FLEETCOR verify and record certain information about you (the Client, Authorized Representative, or anyco-maker or guarantor) while processing this Application.
☐ Not Applicable, Sole Proprietor, Government Entity, Not-For Profit or Public Corporation
Beneficial Owner (Individuals who own 25% or more of a Legal Entity)* First Name*
Middle Initial
Street Address (No PO boxes)*
Last Name*
Social Security#*
City*
Does this person have significant responsibility for managing the legal entity listed above?
State*
☐Yes
ZIP*
Middle Initial
Street Address (No PO boxes)*
Market
Rep ID
☐Yes
☐No
Social Security#* State*
Rep Name
Cell Phone #
☐ Not Applicable, Sole Proprietor, Government Entity, or Public Corporation
Last Name* City*
Home Phone #
Does more than one person own 25% or more ofthis business? (please check box) If yes, additional information will be required.
☐No
Person with Significant Management Responsibility (CEO, CFO, President, Etc.)* First Name*
Date of Birth*
ZIP*
Date of Birth*
Home Phone #
Cell Phone #
**OFFICE USE ONLY** ATS Code (last 4 digits)
*Required field 1
Subject to credit review
The 7-Eleven Commercial Fleet Mastercard and the 7FLEET Diesel Network Mastercard® are 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. FLEETCOR considers your privacy important. We are committed to protecting the privacy of those who provide us with their contact and personal information. View our privacy policy available at www.fleetcor.com/en/privacy-policy to find out more. © 2023 FLEETCOR, P.O. Box 1239, Covington, LA, 70434