IMAGINE THE POSSIBILITIES There has never been a better time to be a Carter Lumber customer in the Cleveland/Akron area. We now have even more resources to provide our customers with quality materials and exceptional service. We’re more than just a lumberyard! Contact your nearest store location to see how having Carter Lumber as a part of your team can help you grow your business and your bottom line.
41625 Griswold Rd. Elyria, OH 44035 • (440) 934-5266
6199 SOM Center Rd. Solon, OH 44139 • (440) 248-5355 467 Center St. Chardon, OH 44024 • (440) 286-3833
172 N. Case Ave. Akron, OH 44305 • (330) 784-5441
3779 Manchester Rd. Akron, OH 44319 • (330) 645-6404 3725 Medina Rd. Medina, OH 44256 • (330) 725-6760
6320 N. Ridge Rd. Madison, OH 44057 • (440) 428-1110 carterlumber.com
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
2020 NCBIA Officers
President Jeremy Vorndran, 84 Lumber Vice President Sara Majzun-Garwood, BCT Alarm Services, Inc.
Associate Vice President John Toth, Floor Coverings International Treasurer Steve Fleming, Shamrock Development Secretary Tim King, K. Hovnanian Homes - Ohio Division Immediate Past President Liz Schneider, Dollar Bank
2020 NCBIA Board of Directors
Dennis Willis, ActionCOACH TeamNEO Kelly Christy, Cleveland Custom Homes Mike Meszes, DRC Construction Dave Linna, Linna Homes & Remodeling Jason Rodriguez, Lorain County Joint Vocational School Mark Craig, Mark F. Craig, Esq. Jason Scott, North Star Builders Emily May Brunke, Northwest Bank Dave Weisenberger, Tusing Builders & Roofing Services
July 2020
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 Tim King, K. Hovnanian Homes – Ohio Division Jason Scott, North Star Builders
OHBA Area 2 Vice-President
Richard Bancroft, Bancroft Development
www.ncbia.com
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7
32
CONTENTS 14
44
Table of Contents 6
Letter from the President
7
Softball Game & Picnic Flyer
8 Save the Dates 10 Executive Officer’s Report 12-13 Golf Classic
IMPORTANT INFORMATION!!
16 Consumer Confidence Increases in June
20
Eye on Housing: Pending Home Sales See Biggest Increase on Record in May
21
OHBA Executive VP Column
22 Eye on the Economy: Labor
Market Improvement Follows Housing Strength
24
NAHB Now: Housing Stands Poised to Lead a Recovery
26-27 Letter to the Lawmakers
17 Consumer Prices Rebound in
28
June
Welcome New Members!
18
29
Mortgage Purchasing Reaches Highest Level in over 10 Years
31
Spike Update
Thank You for Renewing! Sorry to See You Go!
32
Vacant Land Information
34
Gains for Single-Family Permits, Starts in June
35
Builder Confidence Rallies to PrePandemic Level in July
36
NCBIA Calendar of Events
38
Legislative Review
39-43
CareWorks Update
44-47
NCBIA Member Spotlights and Videos
48-49 Hall of Fame
LETTER FROM THE PRESIDENT
All About THE MEMBERS We are officially in the second half of 2020! I am sure many people are giving a huge sigh of relief that this crazy, hectic, one-in-a-million year is on its way out. As I have said before, this year was one for the record books. Some businesses struggled and are working very hard to get back on their feet. Others that were deemed essential are working their hardest to keep up with the work they have pouring in. I completely understand the pressure each and every one of you is under and we at the NCBIA want to commend you. That is why we decided that over the next few months we are making it all about the members! Some of you may have seen the fabulous member spotlight videos that Maria Sabala and Ted Moss from Genevieve Lyle Media Group are putting together. This a free service we are offering exclusively to our members for the months of July & August. These videos are a great way for you to promote yourself and your business. Not only will you get a 2-3 minute video to promote your business that will be shared on our social media, you will also receive a member spotlight profile in this Newsletter next month. Please check out the companies that took advantage of this great offer last month and maybe something will spark your interest about how that person might be able to help your business or vise versa. Jeremy Vorndran of 84 Lumber
“
We are always looking for new and exciting ideas to showcase our members and help you grow your business. Looking forward to seeing how much we continue to grow and thrive in the remainder of 2020.
“
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As always, we are striving to keep your NCBIA Membership as valuable as we can during these difficult times. Should you have any questions over your membership or how you think you can get more out of your membership please do not hesitate to reach out to the NCBIA Staff or myself and we can help point you in the right direction. Do you have an idea that you think we can implement here at the BIA to better serve our members? Send it over to Judie and we can come up with a plan on how to roll it out to our members! We are always looking for new and exciting ideas to showcase our members and help you grow your business. Looking forward to seeing how much we continue to grow and thrive in the remainder of 2020. Remember to stay safe, stay vigilant, and we are all in this together! #TeamNCBIA
www.ncbia.com
July 2020
Save the
Date!
August 29
2020 Softball Game & Picnic 1:00 - 6:00 PM Amherst Township Park 44786 Middle Ridge Rd., Amherst
*All meetings held at the NCBIA office unless otherwise shown.
Check the website at www.ncbia.com for upto-date changes, additions and corrections to these events!
page 8
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!
www.ncbia.com
July 2020
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
EXECUTIVE OFFICER’S REPORT
And the Survey SAYS... I want to thank everyone that responded to our recent survey. There was a great response! It was wonderful to hear how we are doing and what we can do to make the NCBIA even more valuable to you. Here are the results:
What are your reasons for belonging to the NCBIA? 1. Networking 2. Education 3. Advocacy 4. Benefits & Discounts 5. Home Show 6. Industry Awareness
48% 19% 15% 11% 6% 1%
Membership Meetings are held 3 times a year. Are you currently attending these meetings? 93% responded YES 6% responded NO 1% responded Occasionally
by Judie Docs, CSP, MCSP, MIRM, CMP, CGP
“
I want to thank everyone who responded to our recent survey. There was a great response!
Of those that responded no: 5 would like to have morning meetings 7 would like to have luncheon meetings 2 would like to have speakers at meetings
How satisfied are you with the weekly eNews? (send weekly except Builder Newsletter week) 70% responded Very Satisfied 26% responded Satisfied 2% responded Don’t Read It There was no response as to how the eNews could be improved.
How satisfied are you with the monthly Builder Newsletter? 74% responded Very Satisfied 24% responded Satisfied 2% responded Don’t Read It There was no response as to how the Builder Newsletter could be improved.
I am interested in attending an OSHA 10-hour certification. 11 responded yes – I will schedule!
“
I am interested in attending Lead Certification. 8 responded yes – I will schedule!
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www.ncbia.com
July 2020
What other educational sessions would you be interested in? • Tax Planning • SEO Marketing • Marketing My Business • New Construction Appraisal • How to do Business with Builders • Codes
Is there anything that you want or need help with? • Hiring Employees (We can help you with that with our Job Posting Board. Just send me what you are looking for.) • Meeting Home Inspectors • Have connectors during events to introduce members to other members & facilitate connections. (Did you know that new members are given a tabletop at the March and October General Membership meeting to feature their products? Also just give me a call or your sponsor and let us know who you would like to meet.) Thank you again for responding and if you have any additional input please send me an email at judie@ncbia.com.
Don’t miss out! We’ve updated the Office Depot program to offer our members even more! OUR NEW PROGRAM INCLUDES: Substancial Discounts NAHB members saved an average of 26% over retail in 2018! Increased Flexibility Discounts apply both in-store AND online. Dedicated Support Get answers from an Office Depot Representative Businesses can also enroll in account billing for added convenience! To enroll in a direct billing account, call 855-337-6811 X 2897
To print your discount card or to shop online, visit us at:
officediscounts.org/nahb
July 2020
www.ncbia.com
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Looking forward to seeing those who are attending the NCBIA Golf Classic on Friday, July 31st Sweetbriar Golf Course 750 Jaycox Road, Avon Lake The forecast right now is 84 degrees and sunny! Your tee time was emailed to you along with the following info: Thank you for attending the 2020 NCBIA golf outing at Sweetbriar Golf Club. This year's event will be a bit different. The safety of our attendees, NCBIA, and Sweetbriar staff is a primary concern. * If you have been exposed, are sick, or are caring for someone with COVID-19 – DO NOT attend the event. All attendees should bring a personal mask and hand sanitizer. o Masks are required at check-in. (Grassy area on the left of the entrance of the Clubhouse) o No one will be allowed into Sweetbriar buildings without a mask! o You can play without a mask. page 12
www.ncbia.com
July 2020
Arrive no more than 30 minutes prior to your scheduled tee time. No bag drop. Driving range will be open. (Donated by Kopf Builders) Skins/Mulligan packages should have been purchased prior to the outing – NO Sales the day of the outing. Breakfast boxes and water will be in your cart. Boxed lunches can be picked up at the turn. (Donated by Kopf Builders) You will receive 2 drink tickets per golfer which can be used at the beverage carts which will be moving around the course throughout the event. After you use your drink tickets, cash or credit cards will be accepted. You will also receive a $25 Sweetbriar gift card which can be redeemed for rounds of golf, golf shop purchases, golf lessons, outdoor bar, snack bar and Legacy Restaurant purchases. (not the beverage carts on the course). We will be having our 50/50 raffle as usual (20 tickets for $10) tickets available at the turn. Cigars will still be available at the turn. (Donated by Mary H. Felton, Guardian Title) 2 golfers to a cart Be respectful to all players and staff and remember to be socially distant. Only 1 team permitted at the Tee Box at a time. Please stay at least 6 feet back when there is a delay. Players should only touch their own ball and equipment DO NOT REMOVE pin flag There will be a committee member at the end of the outing to collect scorecards. We will send out an email following the outing with winners of the outing and 50/50 raffle. There are no skill prizes this year. 2020 Golf Classic Co-Chairs Dave Weisenberger, Tusing Builders and Roofing Services Liz Schneider, Dollar Bank 2020 Golf Classic Committee Bryan Lazor, WCCV Flooring LLC Debra Seeley, Third Federal Doug Rogers, Dollar Bank Mary H. Felton, Guardian Title Tim Conrad, Graves Lumber
July 2020
www.ncbia.com
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Special Association Discount for the North Coast Building Industry Association
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• 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 1/1/2020 through 12/31/2020. 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. 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. *Fees may apply
Build savings with a special offer for NAHB members. Register now and save 2%** on your Lowe’s® Accounts Receivable (LAR) or Lowe’s® Business Accounts (LBA) purchases. LowesForPros.com/NAHB
for NAHB members
HOW TO APPLY
Download an application at
LowesForPros.com/NAHB. *5% Discount: Subject to credit approval. Get 5% off your qualifying purchase or order charged to your Lowe’s® Business Account or Lowe’s® Accounts Receivable. Valid for purchases in US stores, on Lowes.com and LowesForPros.com. Customer must pay applicable sales tax. 5% discount will be applied after any other applicable discounts. Offer can’t be combined with other creditrelated promotional offers. Can’t be used in conjunction with: any other coupon; Lowe’s military discount; Lowe’s employee discount; Lowe’s low price guarantee; Lowe’s volume or special discount programs such as, but not limited to “QSP”; manager discretion price adjustments; contractor packs; or any other offer which expressly states it can’t be combined with any other discount credit offer. Can’t be used in conjunction with the following products and/ or services: extended protection/replacement plans; shipping, delivery or assembly charges; fees or taxes; gift cards; Dacor®, ICON®, Fisher & Paykel®, Monogram, Smeg or Liebherr appliances (some brands not available in all markets/stores), Weber or Kichler products. Excludes all Lowe’s® Canada Credit products. We reserve the right to discontinue or alter these terms at any time. ©2018 Lowe’s. LOWE’S and Gable Mansard Design are registered trademarks of LF, LLC. ©2018 NAHB. All rights reserved.
StephensDirect_LC_NAHB Member Advantage Brochure Ad 11-10-17.indd 2
Newly opened accounts that fax the downloaded application to 877-896-3839 will be automatically enrolled for additional 2%** savings. **2% Discount: Cannot be combined with any other statement discount. To be eligible for the 2% discount, you must register your National Association of Home Builders affiliation and Lowe’s® Accounts Receivable (LAR) or Lowe’s® Business Account (LBA) account per the instructions provided, make a purchase with your LAR or LBA account by 12/31/18 and comply with all terms and conditions of your LAR or LBA account. Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement. 2% discount will be automatically deducted from your statement at billing (discount will not take effect until Synchrony Bank fully processes your account registration). Excludes Lowe’s® Advantage Card, Lowe’s® Visa® Accounts, Lowe’s Business Rewards Card from American Express and all Lowe’s® Canada Credit products. Account must remain open, be in good standing and not become delinquent at the time the statement credit is applied. *,**Offers valid in US stores, on Lowes.com and LowesForPros.com. Discounts applicable to commercial purchases only. Offers/ discounts provided by Lowe’s and not Synchrony Bank. Subject to credit approval. Lowe’s reserves the right to discontinue or alter these terms at any time.
11/10/17 12:32 PM
Consumer Confidence Increases in June BY FAN-YU KUO
A
fter a sharp decline in April, consumer confidence improved in June for a second straight month, as the economy began to reopen and unemployment claims showed improvement. The Consumer Confidence Index, reported by the Conference Board, rose 12.2 points from 85.9 to 98.1 in June, the largest monthly gain since November 2011. The Present Situation Index jumped 17.8 points from 68.4 to 86.2, and the Expectation Situation Index increased 8.4 points from 97.6 to 106, almost back to February level. Consumers’ assessment of current business conditions improved in June. The shares of respondents rating business conditions “good” remained slightly rose by 1.0 percentage point at 17.4%, while those claiming business conditions “bad” fell by 8.0 percentage points to 43.2%. Meanwhile, consumers’ assessment of the labor market was also favorable. The share of respondents reporting that jobs were “plentiful” increased by 4.3 percentage points, while those saw jobs as “hard to get” decreased by 5.4 percentage points. Consumers were less pessimistic about the short-term outlook. The share of respondents expecting business conditions to improve remained virtually unchanged at 42.6%, while those expecting business conditions to deteriorate fell from 20.5% to 15.3%. However, expectations of employment over the next six months were mixed. The share of respondents expecting “more jobs” slightly fell by 1.1 percentage points to 38.4%, while those anticipating “fewer jobs” declined by 5.7 percentage points to 14.2%. Despite the overall improvement, consumer confidence still remained below pre-pandemic levels and the Present Situation Index suggested that economic conditions remained weak. Looking near-term, consumers are less pessimistic but not expecting a significant pickup in economy activity.
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www.ncbia.com
July 2020
Consumer Prices Rebound in June BY JING FU
A
fter three straight months of declines, both the CPI and the “core” CPI rebounded in June as the economy reopened. The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.6% in June on a seasonally adjusted basis, after three straight monthly declines. It was the largest monthly increase in the CPI since August 2012. Excluding the volatile food and energy components, the “core” CPI rose by 0.2% in June, after a decline of 0.1% in May. It was the first monthly increase in the “core” CPI since February 2020. In June, the indexes for apparel (1.7%), shelter (0.1%), and medical care (0.4%) increased in June, while the indexes for used cars and trucks (-1.2%), recreation (-0.6%), and communication (-0.3%) all declined. The index for motor vehicle insurance increased sharply by 5.1% in June after recent declines. Meanwhile, the price index for a broad set of energy sources rose by 5.1% in June, after five consecutive monthly declines. The gasoline index and the fuel oil index, the major components of energy commodities, increased sharply by 12.3% and 10.2% over the month. In the category of energy services, the electricity index slipped by 0.3% while the index for utility gas service was unchanged. The food index increased by 0.6% in June, following a 0.7% increase in May. The indexes for food at home and food away from home continued to rise amid the COVID-19 pandemic. BLS data collection in June was still affected by the COVID-19 pandemic. BLS mentioned in the today’s news release that many indexes are based on smaller amounts of collected prices than usual, and a small number of indexes that are normally published were not published this month. Over the past twelve months, on a not seasonally adjusted basis, the CPI rose by 0.6% in June, following a 0.1% increase in May. Meanwhile, the “core” CPI increased by 1.2% over the past twelve months, the same increase as in May. The food index rose by 4.5% and the energy index declined by 12.6% over the past twelve months.
July 2020
www.ncbia.com
page 17
MORTGAGE PURCHASING Reaches Highest Level in over 10 Years BY LITIC MURALI
T
he Mortgage Bankers Association’s (MBA) latest Weekly Application shows an uptick in applications for the week ending July 3, 2020. The Market Composite Index increased by 2.2% from the previous week on a seasonally adjusted basis and its constituent Purchasing and Refinancing indices increased by 5.3% and 0.4%, respectively. The MBA’s 30-year fixed-rate mortgage rate fell to a new record low of 3.26%, sliding by 4 basis points from the previous week. Refinance applications increased slightly, of which the main contributor was the increase in conventional refinances. Overall refinance activity was up 111 percent from last year on an unadjusted basis. As was the case in the survey last week, the combination of low housing supply and higher home prices led to another record high this week in the average purchase loan size of $365,700. With the waning of pent-up demand that happened last week owing partly to the resurgence of COVID-19 and continuing decline in mortgage contract rates, a rebound in purchasing is part of the general trajectory of growth in the past couple of months. Interestingly, this week’s purchasing level, on a seasonally adjusted basis, marks the highest level since January 2009. The purchasing share of mortgage activity increased from the previous week by almost 0.1%. The Purchasing Index’s mild decline in the previous week reflects a relatively lower level with respect to 1990, as indicated in the above figure, but bounced back.
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www.ncbia.com
July 2020
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EYE ON HOUSING
Pending Home Sales See Biggest Increase on Record in May
A
BY FAN-YU KUO
fter two months of sharp decline, pending home sales surged the most on record in May, as homebuyers rushed back to the market after the phased reopening of the economy. The Pending Home Sales Index (PHSI), reported by the National Association of Realtors (NAR), is a forward-looking indicator based on signed contracts. The PHSI edged up 44.3% from 69.0 in April to 99.6 in May, the strongest monthly increase on record. On a year-over-year basis, sales were still 5.1% lower than a year ago. All four regions saw an increase in monthover-month contract activity, ranging from 37.2% in the Midwest to 56.2% in the West. However, compared to last year, only the South experienced a year-over-year increase in pending transactions, while the three other regions reported declines. The strong recovery suggests that housing market started to turn the corner after being hammered by the coronavirus pandemic. Mortgage applications recently increased to an 11-year high, and single-family permits grew more than 10% in May, indicating that housing will lead the economic recovery. But more construction is still needed to meet this rising demand.
page 20
www.ncbia.com
July 2020
OHBA EXECUTIVE VP COLUMN
SUMMER Column Given these extraordinary times, this serves as more of a summer monthly column. I am sure as your schedules have changed; our regular reporting has changed as well. Nonetheless, OHBA has been very busy the past three months. It all began with the closure of many elements of the business economy. We were able to enlist many of our allies and contacts to assure home construction was deemed ‘essential” and remained open. We also obtained from our members safety protocols for the construction industry and passed them along to state government leaders to assure them of our commitment to encourage a safe workplace for our employees and customers. We shared a seemingly endless stream of required protocols, answered questions, and passed along ever late breaking critical information. Hopefully, we return to a more normal business climate soon. On a bright note, construction activity remains active across Ohio. The association has remained active, with adjustments, to our operation as well. We had to cancel our summer board meeting given travel restrictions. We were able to hold an executive committee meeting, in person, recently. We are still looking at our fall meeting as details are still uncertain. Otherwise, the association is fully operational. We have a full slate of legislative and regulatory issues we are working on; the legislature is still holding session and committee meetings. The Governor is monitoring the COVID19 issue closely and holding regular press conferences with updates and business openings. We will keep you all posted through our legislative reviews as information becomes available. Working closely with our locals, NAHB and other state associations we have been keeping up with pertinent issues. Many state political issues are warming up as the next election is just a few months away. The statehouse is now patrolled by dozens of state police officers. These are not normal times, but OHBA is still on the job. Please contact us if you need us.
“
by Vincent J. Squillace, CAE, OHBA Exec. VP
These are not normal times, but OHBA is still on the job. Please contact us if you need us.
“ July 2020
www.ncbia.com
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EYE ON THE ECONOMY
W
Labor Market Improvement Follows Housing Strength BY ROBERT DIETZ
hile risks persist, recent economic data have shown rapid improvement relative to dramatic declines in mid-spring. And housing data have led the way: Proving wrong predictions of substantial home price declines, Case-Shiller data indicate a 4.7% year-over-year price gain in April. These gains have been fueled by low interest rates and a renewed focus on the importance of “home� during the ongoing public health crisis. According to Freddie Mac, the average 30-year mortgage interest rate was just below 3.1% at the start of July. Given this backdrop, housing data continue to improve. The NAHB/ Wells Fargo HMI has moved into positive territory, single-family permits were up 12% in May, and the resale market is recovering. According to the Natonal Association of Realtors, pending resales increased 44% in April as the market gained ground off of March lows. Existing sales were being held back by a much-reduced level of listings. As the inventory numbers improve, housing market volume is expanding. The labor market is following the positive trends in housing. In May, construction hiring surged and job openings increased to 365,000, down only slightly from the 373,000 tally measured a year earlier. Indeed, home builders and remodelers added 83,200 jobs in June, after gaining 224,200 in May. This pickup matched the broader economy, which saw an employment gain of 4.8 million and a decline for the unemployment rate to 11.1%. The true jobless rate is higher than the official rate, but the NAHB forecast sees an unemployment rate near 10% at the end of 2020. But risks remain. Rising virus-related hospitalizations in some southern and western states indicate ongoing community spread and threaten additional government-imposed economic shutdowns. Moreover, recent housing strength is, in part, due to an unlocking of sidelined housing demand from the early spring. As this demand is met, some momentum for housing will ease. And double-digit unemployment rates will weigh on rental housing and entry-level housing demand during the second half of the year. However, low interest rates and the changing geography of housing demand (smaller metro and outer suburb demand outperforming large metro areas) suggest housing will continue to lead the economic recovery.
page 22
www.ncbia.com
July 2020
AUTO
INSURANCE MADE EASY. NATIONAL ASSOCIATION OF HOME BUILDERS members could save even more on car insurance with a special discount from GEICO. Contact us today for your free quote!
1-800-368-2734 geico.com/disc/nahb Some discounts, coverages, payment plans and features are not available in all states or all GEICO companies. GEICO contracts with various membership entities and other organizations, but these entities do not underwrite the offered insurance products. Discount amount varies in some states. One group discount applicable per policy. Coverage is individual. In New York a premium reduction may be available. GEICO may not be involved in a formal relationship with each organization; however, you still may qualify for a special discount based on your membership, employment or affiliation with those organizations. GEICO is a registered service mark of Government Employees Insurance Company, Washington, D.C. 20076; a Berkshire Hathaway Inc. subsidiary. GEICO Gecko image Š 1999-2016. Š 2016 GEICO
NAHB NOW
NAHB PUSHES HOUSING
Priorities in Next Coronavirus Relief Package
C
ongress begins work on its next coronavirus relief package, NAHB is urging lawmakers to include several provisions in the legislation that will provide relief to American home owners and renters, along with small and medium-sized residential construction businesses and multifamily owners and developers. NAHB recently sent a letter to House and Senate leaders urging lawmakers to: •
•
• • •
•
Expand eligibility to the Paycheck Protection Program (PPP) so that spec home builders, land developers, multifamily property owners and 501(c)(6) organizations that include state and local home builders associations are eligible to participate in this loan program and to have their loans forgiven. Include emergency rental assistance to families who have significant or full loss of income as a result of the pandemic. Rental assistance funding will not only help tenants affected by the pandemic but also small business multifamily property owners who must continue to pay their mortgage, property taxes, employees and cleaning/maintenance services as well as meet other financial obligations. Establish a permanent minimum 4% credit floor for acquisition and bond-financed projects through the Low-Income Housing Tax Credit. Invest in workforce training programs and career and educational training programs that will help job seekers gain the skills needed for well-paying, in-demand careers in residential construction. Increase aid for state and local governments impacted by the COVID-19 crisis. Without federal aid, critical government services — such as planning approvals, building permits and timely inspections — are at risk of being curtailed or eliminated, resulting in construction delays and increased costs to home buyers. Oppose changes to the Net Operating Loss (NOL) provisions established by the CARES Act.
(See the letter to lawmakers on pages 26 & 27)
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www.ncbia.com
July 2020
Government Affairs James W. Tobin III Executive Vice President & Chief Lobbyist
July 10, 2020 The Honorable Nancy Pelosi Speaker of the House 1236 Longworth House Office Building Washington, DC 20515
The Honorable Kevin McCarthy House Minority Leader 2468 Rayburn House Office Building Washington, DC 20515
The Honorable Mitch McConnell Senate Majority Leader 317 Russell Senate Office Building Washington, DC 20510
The Honorable Charles E. Schumer Senate Minority Leader 322 Hart Senate Office Building Washington, DC 20510
Dear Speaker Pelosi, Leader McConnell, Leader McCarthy and Leader Schumer: On behalf of the more than 140,000 members of the National Association of Home Builders (NAHB), I write to encourage the inclusion of several provisions in the next economic recovery legislation that will provide economic relief for American homeowners and renters, along with small and medium-sized residential construction businesses and multifamily owners and developers. The housing industry stands ready to lead this economy out of the COVID-19 related downturn, just as it has previously in countless other down periods. NAHB supports provisions that alleviate various financial and tax burdens on struggling American businesses and taxpayers; increase aid for state and local governments; and better invest in workforce development and career and technical education programs. NAHB strongly supports the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) which has served as a lifeline to the nation’s small businesses. NAHB respectfully requests the expansion of the loan eligibility to 501(c)(6) organizations. NAHB is a federation of over 700 state and local associations, many of which are desperate for financial assistance to help cover payroll costs and other obligations. The majority of, if not all, our affiliated associations generate most of their operating resources from events and functions that have been canceled due to social distancing requirements and public gathering limitations. Congress intended for all small business to have access to the PPP program during this unique disaster. Access to PPP loans is critical to those small businesses in the residential construction industry, specifically spec home builders, land developers and multifamily property owners that are currently denied access. Without access to these important funds, many small businesses in our industry won’t make it and it will be difficult for our industry to rebound quickly and lead the broader economic recovery. Thus far, attempts to resolve this matter with the Treasury department and SBA have fallen short; therefore, NAHB is compelled to seek legislative recourse to ensure these small businesses have access to the PPP. NAHB urges the inclusion of emergency rental assistance funding. It is essential that the federal government provides emergency rental assistance to families who have significant or full loss of income as a result of the pandemic. An eviction moratorium is a short-term band-aid that only hurts the already financially burdened small business properties. Rent payments and mortgage obligations will eventually become due and will continue to compound without federal assistance. Rental assistance funding will allow the stability of a tenant’s long-term housing and ensure small business multifamily owners are able to pay their mortgage, employees, cleaning services, and other financial obligations. page 26
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A growing area of concern within multifamily development is the Low-Income Housing Tax Credit (LIHTC) and the COVID-19 economic crisis’ direct impact on the production of affordable housing through the 4% credit. The LIHTC 4% credit is used to finance existing property acquisition and preservation. This credit rate floats based on government borrowing costs. With the actions taken by the Federal Reserve to stabilize our economy, this rate quickly fell to an alltime low. For July, the rate is 3.08%, which translates into a reduction of nearly 25% of equity flowing in a 4% LIHTC project. Unfortunately, we do not expect these record-low rates to materially change anytime soon. Congress must address this urgent issue now, and NAHB requests the inclusion of a minimum floor for the 4% credit as well as other provisions included in S. 4078. NAHB opposes changes to the Net Operating Loss (NOL) provisions established by the CARES Act. A sudden, retroactive change to the rules of the game is not what the business community needs, particularly the struggling businesses that have already worked the expanded NOL provisions into their business plans. Furthermore, we expect that as rent payments for multifamily and commercial properties lag, the expanded NOL provision in the CARES Act may prove to be the difference between survival and foreclosure of these properties. The economic recovery legislation must prioritize workforce investment to rebuild the economy and get Americans back to work in the home building industry. Additional investments in federal workforce training programs – especially those benefiting our most vulnerable populations – will help job seekers gain the skills needed for well-paying, in-demand careers in residential construction. Finally, it is imperative that the federal government support our state and local governments impacted by the COVID-19 crisis. Home builders rely on the services provided by state and local governments for their regular business operations. Without federal aid, critical government services, such as planning approvals, building permits and timely inspections, are at risk of being curtailed or eliminated, resulting in construction delays and increased costs to home buyers. Further, these funds provided to state and local governments should be used to replace depleted reserves while also reducing regulatory barriers that increase the cost of home and multifamily construction. We strongly urge Congress to work in bipartisan fashion to address housing priorities in the next phase of economic recovery legislation. Sincerely,
James W. Tobin III
July 2020
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Welcome New Members!
James Miller, Howard Hanna (Affiliate Associate) Sponsored by Maria Sabala, Genevieve Lyle Media Group
Alex Johnson, ALX Architecture
Jamesmiller@howardhanna.com
(Primary Associate)
Millermoveshomes.com
Sponsored by Sara Majzun-
440-222-0403
Garwood, BCT Alarm Services, Inc. alex@alxarch.com
A Real Estate veteran with 20+ Years
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James bases his services on experience, expertise, and open ALX ARCHITECTURE provides thoughtful design services through a collaborative process driven by curiosity and diligence to ensure the confidence and enthusiasm of its clients. We provide services for all
communication. Your Realtors competence and honest communication are key ingredients to successfully buying, selling, building, or relocating. James is licensed with ALL Relocation companies and You Can Request James Miller as your REALTOR®.
phases of a project including research & programming, code analysis,
Johnny Rivera, Chemical Bank
schematic design, design development, construction documentation
(Affiliate Associate)
and contract administration. Our design process implores multiple
Sponsored by Drew Alurovic,
disciplines to achieve the desired outcome through tools such as
Chemical Bank
technical drawings, 3d modeling and rendered visualizations.
johnnyrivera@chemicalbank.com chemicalbank.com 440-752-1947
Joe Novosielski, Blades of Grass I am a Bilingual CRA Mortgage
Groundworks (Primary Associate)
Loan Originator at Chemical Bank
Sponsored by Chris Majzun Jr.,
200 Middle Ave, Elyria OH 44131 I've been writing mortgage loans
Majzun Construction
since the late ‘2006 and can honestly say I find my profession very
info@mybladesofgrass.com
gratifying! I've worked as a mortgage banker now going on 13 years in
bladesofgrass.com
the mortgage industry, and simply put, I love helping people!
440-276-1710
Ryan Montis, 84 Lumber (Affiliate Associate) Sponsored by Jeremy Vorndran, 84 Lumber Matt Hostacky, Flex IP Solutions (Primary Associate)
ryan.montis@84lumber.com 84lumber.com 440-748-3688
Sponsored by Sara MajzunGarwood, BCT Alarm Services, Inc. mhostacky@flexIPsolutions.com FlexIPSolutions.com
Lisa Powers, Medina Lighting
440-824-2601
(Primary Associate)
At FlexIP Solutions, we understand that your business is not like any other. So, your communications needs are not like any other. We won’t put you in a box or try to sell you a phone system that doesn’t fit. We leverage advanced IP technologies and cloud-based delivery to build
Sponsored by Jeremy Vorndran, 84 Lumber sales@medina.lighting medina.lighting 330-721-1441
and manage a communications solution that’s just for you.
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July 2020
Thank You for Renewing!
Sorry to See You Go! Erwin Hines, Cabinets & Granite Direct
Colin Coyne, 84 Lumber Steve Whitman, Advanced Comfort Systems, Inc Doug Leuthold, Advanced Fiber Technology Joe Molnar, Bob Schmitt Homes, Inc. Trevor Miller, Brady 3 Custom Homes & Remodeling James Traut, Electrical Accents, LLC Michelle Williamson, Fidelity National Title Tim Conrad, Graves Lumber Joann Dosztal, JD Custom Designs, LLC Tim King, K. Hovnanian Homes – Ohio Division Joe Hart, North Coast Integrated Technologies
Fannie Chen, Cabinets & Granite Direct Ed Cyrek, Cassell Builders & Remodelers Crystal Cline, K. Hovnanian Homes – Ohio Division Rosanna Hrabnicky, Marketplace Events Terry Murello, Murello, Inc. Sue Troike, Shagovac Heating Jason Higgins, Sunnyside Adam Vincent, Vincent Esq. Paul Vincent, Vincent Esq. Tim McLaughlin, Wells Fargo Advisors
Rob Kreimes, The Kreimes Company Tim Hutman, Tim Hutman Home Renovations, LLC Ray Allen Thom, Thom Concrete
July 2020
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Visit genevievelyle.com to request a
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NEW HOME BUYERS LIMITED WARRANTY BOOKS NOW AVAILABLE Warranty book Updated and Available FOR ONLY $22 EACH! In a binder so you can include other walkthrough documents, warranties, etc.
Email your order to judie@ncbia.com or call the NCBIA Office at (440) 934-1090
THANK YOU SPIKES! Our SPIKES are Our FOUNDATION
STATESMAN SPIKE (500-999 SPIKE CREDITS) Bob Yost......................... Dale Yost Construction............................... 654.75 Calvin Smith................. Calvin Smith Builders................................. 594.50 SUPER SPIKE (250-499 SPIKE CREDITS) Mary H. Felton............. Guardian Title.............................................. 484.50 Terry Bennett................. Bennett Builders........................................... 299.25 Jack Kousma................. Kousma Insulation...................................... 272.00 Chris Majzun Jr. ........... Majzun Construction................................... 254.50 ROYAL SPIKE (150-249 SPIKE CREDITS) Bill Perritt...................... Perritt Building Co...................................... 225.00 Bucky Kopf.................... Kopf Construction Corp............................. 198.50 Randy K. Strauss.......... Strauss Construction................................... 178.00 Bill Comerford.............. Hovey Kaiser Insurance Associates.......... 175.50 Jeff Hensley................... Lake Star Building & Remodeling............ 174.25 Tom Lahetta.................. Tom Lahetta Builders.................................. 158.50 RED SPIKE (100-149 SPIKE CREDITS) Dave Linna Sr................ Linna Homes & Remodeling..................... 137.50 Sara Majzun- Garwood.......BCT Alarm Services..................................... 130.00 Ryan Puzzitiello............ Parkview Homes.......................................... 114.00 Thomas Caruso............. Caruso’s Cabinets........................................ 109.75 Chris Majzun Sr............ Majzun Construction................................... 105.50 Patrick Shenigo............. ShenCon Construction, LLC...................... 102.00
LAWN CARE MANAGEMENT, LLC
GREEN SPIKE (50-99 SPIKE CREDITS) Tom Sear........................ Ryan Homes................................................. 98.25 Jason Scott..................... North Star Builders...................................... 89.50 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 ............................................ 58.50
Michael Bierek
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LIFE SPIKE (25-49 SPIKE CREDITS) Jeremy Vorndran.......... 84 Lumber..................................................... 41.50 Liz Schneider................ Dollar Bank................................................... 34.00 Steve Schafer................. Schafer Development.................................. 30.50 John Daly....................... Old Republic Title........................................ 25.50 BLUE SPIKE (6-24 SPIKE CREDITS) Jason Higgins................ Sunnyside Chevrolet................................... 19.00 Michelle Nowlin........... American Eagle Mortgage.......................... 16.50 Ken Cassell.................... Cassell Construction.................................... 13.50 Jeff Lugar....................... ABC Supply Co............................................ 13.00 Chris Collins................. Carter Lumber Company........................... 12.50 Keith Martin.................. MBD Homes................................................. 10.00 Mike Warden................. Chemical Bank............................................. 10.00 John Blakeslee............... Blakeslee Excavating................................... 8.00 Dave LeHotan............... All Construction Services........................... 7.00 Ashley Oates................. Cambria USA................................................ 6.50 Mike Chambers............ Charles, Morgan & Company.................... 6.50
Tim Hinkle..................Green Quest Homes................................ 6.50 Scott Kosman................ Lakeland Glass............................................. 6.50
July 2020
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July 2020
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.
Gains for Single-Family Permits, Starts in June BY ROBERT DIETZ
S
ingle-family housing permits and starts were higher in June as housing demand and construction remains a bright spot for the overall economy. Demand is being supported by low interest rates and renewed focus on the importance of home amidst the virus crisis. Single-family starts in June were estimated by Census/HUD at an 831,000 seasonally adjusted annual rate, after a revised estimate of 709,000 for May. Consistent with recent gains in the NAHB/Wells Fargo Housing Market Index (HMI), which has recovered to pre-recession levels, single-family permits increased almost 12% in June. Total permits for single-family homes issued in 2020 on a year-to-date basis are 3.4% higher than the first six months of 2019, albeit off weak data from the start of 2019. The increase in the pace of permits and resurgent builder confidence signals gains for single-family starts ahead. single-family starts bottomed out in April at a 679,000 annualized rate. This would mark a 34% decline from the peak starts pace in February. The June pace remains lower on a year-over-year basis (-3.9%) but is better than forecast a few months ago. Single-family starts, on a year-to-date basis, are down just 1.3% relative to the first half of 2019. Thus far, single-family starts are down on a year-to-date basis 8% in the Northeast, down 2% in the South, flat in the Midwest, but are 2% higher in the West (led by the fast growing Mountain states). Construction starts for the multifamily sector, which includes apartment buildings and condos, increased 18% to a 355,000 pace in June. This reflects a 43% decline for multifamily construction relative to the strong January pace. NAHB’s forecast calls for multifamily construction to decline more than single-family construction as a result of the 2020 downturn, so these numbers are well above forecast. In terms of economic impact, there were 497,000 single-family homes under various stages of construction in June. This is the lowest such count since the fall of 2017 and is down almost 5% from a year, as the impact of recent months’ single-family starts declines takes hold. There were 665,000 multifamily units under construction in June. This is almost 8% higher than a year ago.
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BUILDER CONFIDENCE Rallies to Pre-Pandemic Level in July BY ROBERT DIETZ
I
n a strong signal that the housing market is ready to lead a post-COVID economic recovery, builder confidence in the market for newly-built single-family homes jumped 14 points to 72 in July, according to the latest National Association of Home Builders/ Wells Fargo Housing Market Index (HMI). The HMI now stands at the solid pre-pandemic reading in March before the outbreak affected much of the nation. Builders are seeing strong traffic and interest in new construction as existing home inventory remains lean. Moreover, builders in the Northeast and the Midwest are benefiting from demand that was sidelined during lockdowns in the spring. Low interest rates are also fueling demand, and we expect housing to lead an overall economic recovery. While the housing market is clearly rebounding, challenges exist. Lumber prices are at two-year highs and builders are reporting rising costs for other building materials while lot and skilled labor availability issues persist. Nonetheless, the important story of the changing geography of housing demand is benefiting new construction. New home demand is improving in lower density markets, including small metro areas, rural markets and large metro exurbs, as people seek out larger homes and anticipate more flexibility for telework in the years ahead. Flight to the suburbs is real. Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index 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. All the HMI indices posted gains in July. The HMI index gauging current sales conditions jumped 16 points to 79, the component measuring sales expectations in the next six months rose seven points to 75 and the measure charting traffic of prospective buyers posted a 15-point gain to 58. Looking at the monthly average regional HMI scores, the Northeast surged 22 point to 70, the Midwest jumped 18 points to 68, the South increased 10 points to 73 and the West increased 14 points to 80. The HMI tables can be found at nahb.org/hmi.
July 2020
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North Coast Building Industry Association
2020
EVENTS SUBJECT TO CHANGE
OCTOBER
[CAREERS IN CONSTRUCTION MONTH]
JULY
Possible Golf Outing Makeup
Golf Classic 8-9 and 9-10 tee times, see flyer * POSSIBLE MAKEUP DATE OCT 2
MEMBERSHIP EVENT
NAHB Fall Leadership Meeting Kansas City, Missouri
AUGUST Softball Game & Picnic Amherst Township Park, Amherst Township 1:00
MEMBERSHIP EVENT
MEMBERSHIP EVENT
NOVEMBER
SEPTEMBER
[SPIKE APPRECIATION MONTH]
[ASSOCIATE MEMBER APPRECIATION MONTH]
OHBA Fall Board of Trustees Meeting Hilton Easton, Columbus
Labor Day (Office Closed) Executive Committee & Board Meeting 3:30 & 5:00
General Membership Meeting & Election Night 5:00 (More info to come)
NATIONAL EVENT
STATE EVENT
BOARD
Thanksgiving (Office Closed)
DECEMBER Executive Committee & Board Meeting 3:30 & 5:00 Christmas Eve (Office Closed) Christmas Day (Office Closed) New Year’s Eve (Office Closed) Revised 7/20/2020
BOARD
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LEGISLATIVE REVIEW
JULY 28, 2020 REPORT #11 LEGISLATIVE UPDATE The statehouse is at a standstill given the recent announcements of FBI investigations over the past two weeks. OHBA will continue to update on any news and developments as the situation unfolds.
OEPA PUBLIC NOTICE MS4 PERMIT OHBA has heard concerns from a local HBA on the proposed draft Small MS4 General Permit. Ohio EPA has public noticed a draft general permit renewal for public comment. Please visit the following website to view documents associated with the draft general permit and information regarding an August 5, 2020 virtual information session to discuss the draft general permit renewal: https://epa.ohio.gov/dsw/storm/index OHBA is currently reviewing further. Let us know if you have any comments or concerns ASAP.
OHBA FILES NOTICE OF APPEAL WITH ERAC FOR GENERAL PERMIT TO REGULATE EPHEMERAL STREAMS As the new navigable waters rule removed “ephemeral streams” from its definition of Waters of the United States, the OEPA issued a draft general permit to regulate as a water of the state. OHBA had filed extensive comments and participated in multiple stakeholder forums prior to issuance. The permit issued failed to respond to any of the concerns raised. As a result, OHBA and several other stakeholders filed a Notice of Appeal with ERAC and a preliminary preconference hearing scheduled for August 13th. Please let us know if you are interested in receiving a copy of OHBA comments or Appeal filed.
OHBA HOLDING FOLLOW UP DISCUSSIONS ON ICC/NAHB DUST UP Following lengthy discussions at NAHB on the ICC and code adoption process, OHBA has reached out to Ohio Board of Building Standards (BBS) and Dept. of Commerce Staff to ensure Ohio’s code adoption process remains strong. OHBA will continue to follow up both at the state and national level on the ongoing back and forth with the ICC.
PUCO/NATURAL GAS DISCUSSIONS OHBA has been in contact with PUCO staff, and will continue to monitor discussions from the PUCO’s Natural Gas Access Forums. The presentations and a link to view the third Natural Gas Access Forum, which was held virtually, are available on available at: https://puco.ohio.gov/ wps/portal/gov/puco/events/natural-gas-access-forum. The issue of local natural gas bans and related restrictions in building codes is something that OHBA will continue to follow, and work to keep communication open with PUCO staff. Feel free to contact OHBA with any questions or concerns. Ohio Home Builders Association Toll Free- 800/282-3403
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July 2020 BWC News from CareWorks We all know that the spread of Coronavirus (COVID-19) is an escalating global health concern. CareWorks Comp will continue to support our clients’ workers’ compensation and unemployment compensation needs. For the most current and up-to-date information from the Ohio BWC regarding COVID-19 topics, please visit the BWC’s website at: BWC COVID-19 Information.
Industrial Commission: Now Holding Hearings for All Issues The Ohio Industrial Commission (IC) held a special commissioner’s meeting in early June 2020 to discuss moving forward with allowing all hearing issues to be scheduled within the current telephonic process. Treatment issues account for 76% of the hearings currently not being heard by the IC. With this resolution it will open up the hearing process to schedule hearings for any issue, no exclusions. This was passed unanimously by the commissioners. There was no discussion of returning to in person hearings at this time. There is still a 1,400-claim backlog that the IC is working through for Permanent Partial Disability (PPD) hearings, which were added to the docket in mid-April 2020.
Ohio BWC Defers Premium Installments The Ohio Bureau of Workers’ Compensation (BWC) is deferring Ohio employers' premium installments for the months of June, July, and August. Businesses will have the option to defer the monthly premium payments with no financial penalties. “By extending the premium due date, businesses can continue to focus on the safety and well-being of their employees and customers during this health pandemic,” said Governor DeWine. This is the second payment deferral BWC has given to employers amid the ongoing COVID-19 pandemic. The deferral is designed to help employers focus financial resources on re-opening their businesses under the Responsible RestartOhio Plan
New Policy Year Starts July 1, 2020 By now you should have received your Ohio BWC Premium Estimation Notice explaining what your estimated payroll and premium will be for the Policy Year July 1, 2020 to June 30, 2021.
CareWorks Comp highly suggests that you review this notice in detail and confirm if the estimated
payroll numbers the BWC is projecting match what you are projecting for your company. If you are expecting your payroll to change significantly for the 2020 Policy Year (either up or down) we suggest you contact the Ohio BWC to adjust those numbers accordingly. This will ensure a more manageable True Up in the summer of 2021.
Did You Know? Your July 1, 2020 through June 30, 2021 Policy Year Estimated Payroll was REDUCED by the Ohio BWC by 20% in response to payrolls possibly being lower as a result of COVID-19! Employers can call the BWC at 1.800.644.6292 and adjust their 2020 Policy Year Payroll as needed. This will ensure a more manageable True Up in the summer of 2021.
July 2020
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2019 Rate Year BWC True-Up Due August 15, 2020! 2019 Rate Year True-up: True-Up reconciliation must be completed by August 15, 2020 for the July 1, 2019 through June 30, 2020 rate year. Your True-Up Report will be available to complete on-line at www.bwc.ohio.gov on July 1, 2020. It is very important that your True-Up is completed timely or the BWC may remove your company from any alternative rating programs, such as Group Rating or Group Retrospective Rating. The BWC considers the True-Up complete when payroll is reported AND any related premium payments are made. Simply go on-line to your account at www.bwc.ohio.gov, login, and then go to Payroll True-Up. Follow the prompts to report your actual payroll dollars by Manual Classification Code. The BWC will then calculate how much workers’ compensation premium you owe compared to what you paid in Estimated Premium throughout the policy year. When complete, you will be shown how much additional premium you still owe, OR you will receive a credit for overpayment. If you owe any additional premium, it MUST be paid to the BWC by August 15, 2020.
CareWorks Comp offering 2020 Spring Seminars via Video due to COVID-19 In response to COVID-19 prevention measures and in consideration for the health and safety of our clients and our colleagues, CareWorks Comp is offering this year’s seminar content via video. If you have already registered for an onsite seminar, a CareWorks Comp colleague will reach out to you to discuss this video option. We are committed to maintaining services critical to client success. For questions or registration please contact Marcia Dennis at 614.956.2323 or Marcia.Dennis@careworkscomp.com.
Be Aware of Covid-19 Payroll Reporting Changes When Completing Your 2019 Policy Year BWC True-Up: Knowing what NCCI Manual Code to report your employees’ payroll under for this upcoming July 1, 2019 to June 30, 2020 True-Up Report might be confusing. The following are guidelines from the Ohio BWC that we hope will help you: •
8871 Teleworker can be temporarily added to your policy to report wages for operational staff teleworking during the “Stay at Home” order issued March 15, 2020 by Governor Mike DeWine. You are responsible for tracking the hours/days for which your employee works at home. Any employee working from home and performing the same duties of the regular operations needs to report those wages to their regular classification code.
•
The employer must contact BWC to request the addition of classification code 8871 – Clerical Telecommuter for private employers and 9444 - Public Employee Clerical Telecommuter for public employer taxing districts to their policy. This will allow the employer to report teleworking wages to class code 8871 or 9444 during the true-up period. To request the addition of class code 8871 - Clerical Telecommuter or 9444 for public employer taxing districts to your policy, please call 1-800-644-6292 or send an email to RTSclass@ohiobwc.com. Remember to include your policy number in your email request. The employer is to cease reporting operational employees’ wages to teleworking class code 8871 or 9444 once the “stay at home” order has ended or if the operational employee(s) return to performing their previous job duties.
•
If a worker continues to perform the same duties from home while teleworking, the employer will continue reporting that worker’s wages to the appropriate operational classification code, not to class code for teleworking.
○ For example: the employer manufactures surgical masks. The employer has sent workers home with the equipment and
materials to continue making masks. These workers are not 8871 Clerical Telecommuter employees. They would remain under
classification 2501 – Cloth, canvas and related products manufacturing. The exposures for them do not change.
•
Additionally, operational employees working periodically at the business location but being paid a full wage must report all wages to the employee’s regular classification code. Once the state of emergency has ended or when the employee(s) return to performing their previous job duties, wages must be reported to the regular classification code
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•
Effective March 15, 2020 until the end of the state of emergency, wages paid to employees sent home and not performing any duties are NOT reportable to the Ohio BWC.
•
Under voluntary work options, if employees chose to work their schedule as they regularly do, the gross pay will be reportable. For those who chose to stay home and receive the reduced shutdown pay, the shutdown pay would not be reportable.
•
Private employer staff currently reported under class code 8810-Clerical will continue to be reported under class code 8810, not 8871.
•
Sole Proprietors and Partners who have elective to cover themselves will continue to report their wages to the assigned operating class code.
•
The employer is responsible for recording, tracking, and documenting the wages associated with the operational employees now teleworking for premium audit purposes.
•
If the worker performs their regular duties on an intermittent basis, such as working at the employer location Monday, Wednesday and Friday and is paid to stay home Tuesday and Thursday, all wages are to be reported to the operating class code and not to class code 8871.
•
Payroll for employees receiving wages but not working during the emergency are not reportable to BWC. It is your responsibility to maintain payroll records for these wages separately so these wages can be verified.
•
Effective April 1, 2020 through December 31, 2020, wages paid by companies under the Families First Coronavirus Response Act for sick leave related to COVID-19 and leave time to care for a child whose school or childcare provider is closed or unavailable for COVID-19related reasons are not reportable to BWC. Employers must follow the guidelines established by the Federal Government to exclude these wages from their reportable payroll and maintain appropriate records, including a report of Ohio Medicare wages.
•
This temporary revision to the class code assignment rule only applies during the time of Governor DeWine’s “stay at home” order, which he initiated March 15, 2020.
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NCBIA Member Spotlights You might have heard the buzz about the recent NCBIA Member Spotlight videos. Maria Sabala and Ted Moss of Genevieve Lyle Media Group are donating their time and talent to help promote NCBIA Members in July and August with a FREE Video interview. These videos are 100% free, no commitment, and they are yours to keep and use as much as you like. You can post on your website, social media, wherever! We'll also be posting on the NCBIA Facebook and YouTube. Just one more way to provide value to our members! You'll also get a Member Spotlight article HERE in the next BUILDER Newsletter! Email Maria to schedule your Member Spotlight video at maria.sabala.ncbia@gmail.com.
CRISTINA BERTERO FULLY PROMOTED Fully Promoted is a business that focuses on promoting other businesses. The company was started in North Olmsted in 2012 by Cristina & Fernando Bertero. They originally started as EmbroidMe North Olmsted but in 2016 the franchiser decided to change to its current name of Fully Promoted. They specialize in branded products; from garments, promotional items, signage, and printed paper products, they can really do it all! Fully Promoted prides themselves in helping local businesses send out their message and get their brand noticed. Cristina and Fernando love what they do and love to see their customers proudly sporting their logos.
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July 2020
Office Depot NAHB Members can save up to 75% on over 93,000 products at Office Depot and OfficeMax!
In 2019 members saved over $20 million using NAHB Member Savings programs. Savings in these programs and others help cover the cost of your membership dues and benefits your local association.
Cloth Face Masks are available (SKU# 9885276). Shop online for delivery or pickup. LEARN MORE
Now more than ever, businesses are looking for smart ways to reduce costs. Don't miss these and other great programs that can save you and your business money:
General Motors General Motors is proud to offer NAHB Members a Private Offer of $500 or $1,000 towards your next purchase or lease of select Chevrolet, Buick and GMC vehicles. LEARN MORE
UPS As safer at home measures start to relax and we focus on rebuilding, lean on your NAHB UPS Savings Program to address logistics challenges and deliver the tools and resources you need to help your business and clients come back stronger than ever. LEARN MORE
GEICO Lowe’s Pro Introducing Lowe’s4Pros JobSight powered by Streem—free through October 31*. Get work done remotely with innovative tools from Lowe’s. Lowe’s For Pros JobSIGHT™ helps you serve your customers remotely, making it easier to diagnose and troubleshoot problems from a distance.
As an NAHB member, you could already be eligible for a special discount on GEICO car insurance. But now through October 7, GEICO is proud to combine the GEICO Giveback—a 15% credit for both current and new customers—in addition to your special discount. Get a quote today. LEARN MORE
*Services subject to Streem Terms. Lowe’s Loyalty membership or Lowe’s Account Receivable account required. More Terms apply.
LEARN MORE
July 2020
Access all of the Member Savings discounts at nahb.org/savings.
www.ncbia.com
page 45
JOHN & JEN TOTH
BRETT ADAMS SPROUSE AGENCY
FLOOR COVERINGS INTERNATIONAL John & Jen Toth started the Cleveland West franchise of Floor Coverings International in 2015. They specialize in every aspect of flooring for homes or businesses. They offer an unique experience in the sense that they bring their mobile showroom right to your location. Their mobile showroom offers over 3000 samples for the customer to choose from. Those samples include everything from tile, hardwood, carpet, and luxury vinyl. They pride themselves in being a family owned and run business and truly love working in and helping out their community. The shop-at-home experience is a fantastic way to see the samples against your décor and in your own lighting. Their certified installers average over 26 years’ experience in the flooring industry and this truly sets them apart as one of the best in the business.
Brett Adams is a Certified Insurance Counselor focused exclusively on Commercial Insurance with a specialization in Contractors, Skilled Labor and Manufacturing companies. Brett offers a very different approach to commercial insurance by looking at a company’s risk from the inside out, rather than the outside in. “Most Brokers focus on the areas of a business’ risk that everyone is familiar with, things like Property, Liability, Equipment and Auto. While a business has exposure in these areas, there is another risk that every business with employees face and that is their People Risk”. Things like keeping an Employee Handbook complete and up to date or staying compliant with all the State and Federal regulations. Policies and procedures around things like Hiring, Firing, Sexual Harassment and Discrimination but they don’t even know where to begin in developing them. Sprouse Agency can help.
681 Moore Rd e, Avon Lake, OH 44012
2340 Hayes Ave., Fremont, OH 43420
https://clevelandwest.floorcoveringsinternational.com/
sprouseagency.com
(440) 434-3476
(419) 515-0506
Floor Coverings International
Sprouse Agency
CLICK TO WATCH
CLICK TO WATCH
page 46
www.ncbia.com
July 2020
TED MOSS GENEVIEVE LYLE MEDIA GROUP
SARA MAJZUN-GARWOOD BCT ALARM SERVICES BCT Alarm Services was founded by Brian Jankowski in 2007. Over the past 14 years they have grown exponentially and now encompass most of Northern Ohio. With over 30 years of experience in the alarm industry their team consists of Brian Jankowski, Tim Szilvasy, Mark Evans, Sara Majzun-Garwood and Mike Huston. BCT Alarm Services takes pride in offering their customers the best service in the business and strive to make sure all their clients’ needs are met. BCT offers a comprehensive line of design services and installation of security systems for homes and commercial businesses including burglar alarms, fire alarms, access control, surveillance and environmental monitoring. They are your LOCAL alarm service provider, giving peace of mind to North Ohio homes and businesses.
We help you dominate your local market. How do we do that? We help you get found and stand out online. This is key to getting new customers. If you don't know what to do with digital marketing, Maria and I are committed to "demystifying" it and making it fun, effective and affordable for small businesses. We offer a FREE and easy to get started. First, to get your Free Snapshot Report visit our website at below and click on "Get My Free Report." You'll receive a report card showing how you're performing online and where your best opportunities are for growth. We'll walk you through the report and show you solutions that can help you grow your online presence. Questions? Give me a call at the number below.
103 Milan Ave., Suite 4, Downtown Amherst, Ohio 44001
(440) 728-0639
(877) 215-0763
genevieveLYLE.com
security-ohio.com
BCT Alarm Services
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CLICK TO WATCH
CLICK TO WATCH
July 2020
www.ncbia.com
page 47
NCBIA Hall of Fame Members
Terry Goode Inaugural Class 2001
Bucky Kopf Inaugural Class 2001
Robert Nickoloff Inaugural Class 2001
........ Hall
of
........
FAME North Coast Building Industry Association
Hall of Fame Nominating Form
Ernie Parsons Inaugural Class 2001
Calvin Smith Inaugural Class 2001
Dan Strauss Inaugural Class 2001
Jim Schmidt Randy Strauss Dale Yost Inaugural Class Inaugural Class Class of 2002 2001 2001
The North Coast BIA Hall of Fame was established to honor individuals who have made a lasting contribution to the housing industry through their work in building and development, public service and housing-related areas. To nominate an individual for Hall of Fame induction, you must be a member of the NCBIA in good standing, complete this form on both sides and return it to the NCBIA office by November 30, 2020.
Hall of Fame Candidate Name: Title: Company Name:
Robert Yost Class of 2002
Chris Majzun Class of 2003
Bill Perritt Class of 2003
Address: City/State/Zip: Phone
Gene Henes Class of 2004
John Sarnovsky Class of 2004
Mick Mackert Class of 2004
Nomination Submitted by: Company:
Return the completed form to: Hall of Fame Committee c/o NCBIA 5201 Waterford Dr., Sheffield Village, OH 44035 Phone: 440-934-1090
Phone
Chris S. Majzun, Jr. Andy Kerchmar Larry Franklin Class of 2005 Class of 2005 Class of 2004
LeRoy Forthofer Class of 2006
Ray Yunker Class of 2006
Mary Felton Class of 2009
Linda Kacher Class of 2009
Joe Scaletta Class of 2010
Rich Smothers Class of 2010
(continued on reverse side)
NCBIA Hall of Fame Nominating Form (continued) If you want to check on the criteria for your nominee, please contact the NCBIA office at (440) 934-1090.
Hall of Fame Core Criteria
Use additional sheets as needed and please type information when possible.
~Longevity of Membership - At least 10 years of NCBIA membership ~Committee work - Must have served on 7 (seven) committees during time of membership and chaired 1 (one) ~Directorships and offices held - 5 (five) year minimum ~Spike Status - Must have achieved Life Spike Status ~Community Involvement - Involvement defined as something that takes a time commitment not just a monetary one ~Promotion of Industry and Association - E.g. speaking engagements, home show participation, JVS liaison, use of logo in advertising, etc.
Member from
year
to
year
.
List committees &/or task forces that nominee has served on and indicate chair positions as they apply. committee name
Ex. Clambake
years
chairman check if yes
2018
Other Criteria Considered ~OHBA and/or NAHB involvement ~Sponsorships (e.g. sponsorship program or event sponsorships) ~Task Force Involvement (e.g. Expansion Development Task Force) ~Special Stories/Circumstances (e.g. radio show, 24-hour house)
List NCBIA offices held
~Awards received (NCBIA & others)
office/directorship
years
~Complaints or lack thereof (NCBIA records will be checked for complaints)
List OHBA and/or NAHB involvement
Spike Status
Sponsorships
Industry & Community Involvement
Awards Received (NCBIA and others) Special Stories or Circumstances that are pertinent Summary Statement: I believe that the NCBIA Hall of Fame because...
should be named to
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$500 CASH ALLOWANCE 4
on many Chrysler, Dodge, Jeep®, Ram, FIAT ®or Alfa Romeo Brand vehicles
UP TO $1,000 ALLOWANCE 5
See NAHB.org/FCA for additional details.
MOST NATIONAL AND LOCAL INCENTIVES
FCA US LLC IS A PROUD AFFINITY PROGRAM PROVIDER FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS.
1. Based on the average of VIO vs. New Registrations for each model year using IHS Markit Data as of September 1, 2019 for Model Years 1988-2019. 2. When properly equipped. See dealer for details. 3. When equipped with the 5.7L HEMI® V8 engine with eight-speed automatic transmission. 4. Available on select models. Please see dealer for more details and complete eligibility requirements. This program is available only to NAHB members and member company employees, and immediate family members living in the same household residing in the 50 United States, the District of Columbia and Guam, but such availability is subject to change without notice. 5. On The Job incentives apply only to NAHB members and member company employees. NAHB members and member company employees: see dealer for On The Job incentive details, program rules, and eligibility requirements. On The Job is a retail incentive program; see your dealer for official program rules. Offer ends 1/2/2021. Inquire about eligibility by calling 877-ONTHEJOB (877-6684356) or by logging on to fcausfleet.com. ©2020 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram and HEMI are registered trademarks of FCA US LLC FIAT and ALFA ROMEO are registered trademarks of FCA Group Marketing S.p.A., used with permission.