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BUILDER north coast building industry association

Table of Contents On the Cover

NEWSLETTER

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 Ph: 440.934.1090 Fax: 440.934.1089 info@ncbia.com www.ncbia.com

NCBIA Staff Executive Officer - Judie Docs judie@ncbia.com Administrative Assistant - Ashlyn Bellan ashlynncbia@gmail.com Marketing Associate - Maria Sabala mariancbia@gmail.com

Girls Night Escape the Madness

Letter from the President

Welcome New Members

President - Chris Majzun Jr., Majzun Construction Co. Vice-President - Jeff Hensley, Lake Star Building & Remodeling Associate VP - Liz Schneider, Dollar Bank Treasurer - Steve Fleming, Shamrock Development Secretary - Jeremy Vorndran, 84 Lumber Company Immed. Past President - Mary H. Felton, Fidelity National Title

Girls Night Escape the Madness

Economic Housing Forecast

8-13

Membership Contest Update

Local Economies Grow Slower

Spike Roladex

18-20

OSHA Classes

Executive Officer’s Report

2018 Marketing Guide Clambake Photo Gallery

Spike Update

2017 NCBIA Officers

23-30 33-34; 42

Thanks for Renewing

Spike Report

Worker’s Comp Update

48-50

2017 NAHB & OHBA Directors These are our members who represent our local industry in Washington DC and Columbus.

2017 NCBIA Board of Directors

2017 NAHB Directors

Ashley Caruso-Noe, Caruso’s Cabinets Mark Craig, Mark F. Craig, Esq. Chris Husted, Prete Builders Sara Majzun-Garwood, BCT Alarm Services, Inc. Keith Martin, MBD Homes Timothy McLaughlin, CFP®, Wells Fargo Advisors, LLC Shannon Niebes, Integrated Restoration Michelle Nowlin, First Federal Savings of Lorain Tom Sear, Ryan Homes Tyler Yost, Dale Yost Construction

Mary H. Felton, Fidelity National Title Jeff Hensley, Lake Star Building & Remodeling

NAHB Alternate Director

Tom Caruso, Caruso’s Cabinets

Sr. NAHB Life Director & Ohio’s State Rep. to NAHB Strauss Construction

1975

Dan Strauss

Strauss Construction

1996

Dan Strauss 1975

Tom Caruso, Caruso’s Cabinets Mary H. Felton, Fidelity National Title Jeff Hensley, Lake Star Building & Remodeling Tom Lahetta, Tom Lahetta Builders, Inc. Chris Majzun Sr., Majzun Construction Co. Chris Majzun Jr., Majzun Construction Co. Randy Strauss, Strauss Construction Bob Yost, Dale Yost Construction

Randy Strauss 1996

2017 OHBA Trustees Mary H. Felton Liz Schneider Keith Martin

Fidelity National Title Dollar Bank MBD Homes

OHBA Alternate Trustee

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.

Randy Strauss

OHBA Past Presidents

NCBIA Life Directors

october 2017

Cover Story:

OHBA Executive Update

Tom Ostrander Tom Lahetta

84 Lumber Company Tom Lahetta Builders & Remodelers, Inc.

OHBA Area 2 Vice-President Mark Zolllinger

www.ncbia.com

Zollinger Builders

page 3

A Letter from the President by Chris Majzun, Jr., Majzun Construction Co.

Member-to-Member recruitment and retention efforts results in growth and stability of our association. Spike efforts lead to the development of the general membership, leadership, building the voice, power and influence which keeps the NAHB true to our industry and the interests we represent.

• Expertise o Members get access to the members-only website to stay up-to-date with latest industry news and analysis on economic, business, regulatory, legislative, technological issues from across the nation and locally. • Advocacy o NAHB’s keen advocacy focus provides the home building industry the stability to move forward and give our members competitive advantage. NAHB leverages the power of members across the country to lobby on Capitol Hill, your state and in your community.

How you become a Spike – before becoming a Spike, you are a Spike candidate until you earn between 1 and 5 ½ credits. Once you earn your 6th credit, you become an official NAHB Spike. Credits are earned by recruiting and retaining members.

Every day you do business with dozens of home building-related companies that are prospective NCBIA members. Use the Prospect Roladex on Pages 18-20 to create a customized “Roladex” for potential new member recruits.

November the NAHB celebrates Spike Appreciation Month. Recruiting new members to the NCBIA is recognized and rewarded by the Spike Club. Members that participate are called Spikes, and they are the most valued members of the association.

How you earn Spike credits – Members earn one credit for new Thanks to everyone who takes an active role in recruiting new members members they sponsor. When that member renews after their first year and helping with retention; it is the heart of our health and long-term of membership the sponsoring member automatically gets one renewal existence. credit. Every year the member renews thereafter, the sponsoring member receives a ½ renewal credit. If someone values your trust to provide them services, take the next step and at least make them aware of the NCBIA. Enormous risks are taken at times in this ever-changing building industry. Wrong-headed legislation and regulation has dented many company’s bottom line more than a few times. One of the most valuable resources to keep track of challenges is the NCBIA because they are on the front lines of protecting our industry and helping it to grow. Being a member of the NCBIA will give you a 3 in 1 membership. The Ohio Home Builders Association (OHBA) and the National Association of Home Builders (NAHB) are powerful groups that provide advocacy in Columbus and in Washington D.C. on behalf of all of us who earn a living in the building industry. Communicate the benefits: • Networking o It’s not just who you know, it’s who others know. Networking is powerful. • Visibility o Stand out and get noticed in your community. • Credibility o Raise your reputation through membership. • Discounts o Increase your purchasing power through members-only discounts and perks. • Have a Voice o Gain a say in what happens in government through the Association advocacy efforts. • Learning o Get a competitive edge over non-members with exclusive training opportunities on a variety of hot topics. page 4

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october 2017

Mark These Dates in Your Calendar

OHBA Update by Vincent J. Squillace, CAE, OHBA Exec. VP

THE WINDS ALWAYS SWIRL It is more the norm that the unexpected becomes the expected. I guess there is no more normal. With government interactions and legislative politics, one may as well ask a weatherman just what to expect next. In any event, it keeps things interesting. Over this current session, which began in January, a spate of construction licensing/registration bills have been considered. From remodelers to roofers, elevator installers, home inspectors, residential plumbers, electricians, HVAC contractors as well as gutter and downspout installers have been drawn into the discussion. In fact, a conservative think tank editorialized as to just what the heck is going on here with a conservative legislature. In my view, many of the affected industries are finding protection with a shield of licensing. Not that all licensing is bad, however, with some curious intentions in mind, some serious scrutiny is warranted. OHBA is doing just that.

NOV 07 - Economic Forecast with HBA of Greater Cleveland (all day) NOV 08 - Board of Directors Meeting 5:00pm NOV 09 - SMC Girl’s Night Event - Parker’s Grill & Tavern (details to come) NOV 14-15 - OHBA Fall Board Meeting - Columbus, Ohio DEC 13 & 14 - OSHA Training - NCBIA Office JAN 01 - NCBIA Office CLOSED - Happy New Year JAN 09-11 - International Builders Show - Orlando, FL JAN 27 - Installation of Directors & Officers (info coming soon) Check the website at www.ncbia.com for up to date changes, additions and corrections to these events!

Some rare good news regarding zoning referenda. A federal district court recently ruled in a central Ohio case where the substance of a referendum effort, which passed, wrongfully repealed, retroactively, a development project properly approved by the city council. In the approved referendum, petitioners enacted new zoning regs, effectively repealing the previously approved project. The court found this result to be unconstitutional and voided it. Apparently, the courts will hold results of a referendum unconstitutional when acting improperly. The developer settled with the city for $1.8 million. Can’t pass up the opportunity to mention the local chatter on the gubernatorial contest. With eight or so declared candidates talk is some may drop to other offices or pair up as running mates. In terms of campaigns, starting to hear the 20-million-dollar mark as possible expenditures. And that is not the total to be spent but, just for one candidate. Have to remember also all 99 House seats and 17 in the Senate up for, grabs too. Fundraising continues at a furious pace. All the candidates have one thing in common. That is, they want to improve your world. We are still more than a year away from the election. Stay tuned.

NAHB Members Benefit with Houzz

25,000+ NAHB members are taking advantage of the strategic alliance with Houzz to showcase their work, build their brand, and reach new clients. Are you? NAHB Member Benefits Include: • Free access to Houzz Concierge Service for one-on-one support • Exclusive discounts on local advertising to reach homeowners in your area • Shop Houzz product discounts for you and your clients Create your professional profile today or learn more at houzz.com/nahbmembers.

NAHB Member Advantage Discounts

NAHB Member Advantage gives members an easy way to reduce expenses, maximize profits and increase efficiency. Through agreements with leading national companies, NAHB offers exclusive discounts on a variety of products and services that can benefit your business, employees and family. In the past year, members have saved over $17M through Member Advantage. For the most up-to-date information about which companies are offering discounts as well as detailed information on how to access the savings, please visit www.nahb.org/ma.

october 2017

www.ncbia.com

page 5

ST. JUDE DREAM HOME

Giveaway

Annual Cleveland St. Jude Dream Home Giveaway Bricks and Sticks Breakfast Tuesday, November 28, 2017 - 10:00am Joe’s Deli 19125 Hilliard Blvd | Rocky River, OH 44116

Partner with Cleveland Custom Homes and help in the fight against childhood cancer! Join us for our annual Bricks and Sticks breakfast to learn more about this unique opportunity.

Please RSVP to Ashley Eddie by November 21, 2017 Ashley.Eddie@stjude.org | 614-947-3900

dreamhome.org

St. Jude patient, Andrew, bone cancer

Support your community. Shop local businesses.

Local business owners have been counting on Town Money Saver to help grow their businesses since 1992. We are proud to be your hometown coupon magazine.

page 6

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october 2017

Escape the Madness Join our Members, Colleagues & Friends for a Night out with the

GIRLS Thursday, November 9th, 2017 5pm - 8pm

PARKER’S GRILLE & TAVERN - 32858 Walker Rd, Avon Lake, OH 44012

Do a little shopping with our vendors just in time for the Holidays... Handbags, candles, leggings & tunics, jewelry and so Much More! WE WILL BE COLLECTING...CHILDREN’S WINTER HATS, GLOVES, SCARVES, SOCKS, BOOTS, PERSONAL HYGIENE PRODUCTS, AND FINANCIAL DONATIONS THIS NIGHT TO BENEFIT

LORAIN COUNTY CHILDREN’S SERVICES

Company Name Contact Name Number Attending Email or Phone Number

Only $25.00 per person

Attendees Must be 18 and Over Heavy Hors d'oeuvres, water and soft drinks. Cash bar including our annual signature cocktail!

Please Invoice Me _______Check Enclosed _______ VISA/MC/DISC/AMEX _______ Card Number

If you cannot attend but would like to make a contribution, please make checks payable to: Lorain County Children’s Services

City/State/Zip

Deadline for Reservations and/or Cancellations Monday, November 2, 2017

Phone#

**A $5.00 Convenience Fee will be charged for all Credit Card Payments

Exp. Date

CVV#

Address

Email Authorized Signature

2017 Membership Drive

by Sara Majzun-Garwood - Membership Chairman

As our 2017 membership drive draws to a close members we came very I want to first take a moment to thank all of our close. members who recruited new members to the North Coast Building Industry Association. At this time the membership committee As a whole, we brought in 66 new members from is looking for new and January 1st to October 15th. This is a HUGE accomplishment! As we exciting ideas for next all well know, the theme for this years’ membership drive was the Cavs years’ theme as well as vs. the Indians. The Cavs team brought in 24 members this year which ideas for our grand prize earned them a total of 89 points! Some of their top recruiters include for the membership Bob Yost (3), Jeff Hensley (3), Mary Felton (3), and Michelle Nowlin (3). drive. Being on the membership committee Our winning team this year was the Indians! They brought in a total is a great way to meet of 42 members which earned them a total of 139 points and also the all of our members and VICTORY! grow your business as well as our association. The top recruiters for the Indians were Sara Majzun-Garwood (21), 2017 Memberhsip Drive Contest Winner, Chris Majzun Jr (7), and Linda LaFleur (3). The grand prize for the If you are interested in Candy Banks (shown here with her grandchildren) membership drive this year was a travel voucher worth $1800! For every being a part of the 2018 primary member brought in to the association you got 6 entries in to the membership committee drawing and for every affiliate member you got 1 entry. please reach out to Judie Docs at the NCBIA office. Thanks again everyone for your support of our This years’ BIG WINNER was Candy Banks from WEOL! We had some great association and we look forward to another fantastic membership lofty goals this year and although we did not reach our goal of 300 drive in 2018!

Builder Confidence Rises Four Points in October BY ROBERT DIETZ Builder confidence in the market for newly-built single-family homes rose four points to a level of 68 in October on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This was the highest reading since May. This current reading shows that home builder sentiment is rebounding from the initial reaction of concern due to hurricanes in Florida and Texas, including the anticipated effects of repair and restoration work. However, builders need to be mindful of long-term, regional impacts from the storms, such as intensified material price increases and labor shortages.

high 60s levels we saw in the spring and summer. With a tight inventory of existing homes and promising growth in household formation, we can expect the new home market continue to strengthen at a modest rate in the months ahead. 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.

It nonetheless is encouraging to see builder confidence return to the All three HMI components posted gains in October. The component gauging current sales conditions rose five points to 75 and the index charting sales expectations in the next six months increased five points to 78. Meanwhile, the component measuring buyer traffic ticked up a single point to 48. Looking at the three-month moving averages for regional HMI scores, the South rose two points to 68 and the Northeast rose one point to 50. Both the West and Midwest remained unchanged at 77 and 63, respectively. The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at nahb. org/hmi. page 14

www.ncbia.com

october 2017

Welcome New Members

Thank You for Renewing Your Membership Tim Bennett, Bennett Builders

Crystal Cline K. Hovnanian Homes – Ohio Division 440-985-7440 Sponsor: Sara Majzun-Garwood

Bob Yost, Dale Yost Construction Lindsay Yost-Bott, Dale Yost Construction Tyler Yost, Dale Yost Construction

Kelly Kreisler K. Hovnanian Homes – Ohio Division 440-985-7440 Sponsor: Sara Majzun-Garwood

Jim O’Connor, Drees Homes Michelle Nowlin, First Federal Savings of Lorain Mary Speer, Gundlach Sheet Metal Works, Inc.

John Sherer K. Hovnanian Homes – Ohio Division 440-985-7440 Sponsor: Sara Majzun-Garwood

Jim Dosztal, JD Custom Designs Jason Scott, North Star Builders DeAnn Guilmette, Premier One Painting, Inc.

Ray Swift K. Hovnanian Homes – Ohio Division 440-985-7440 Sponsor: Sara Majzun-Garwood

october 2017

Chris Husted, Prete Builders, Inc. Cathie Emery, Sims-Lohman Fine Kitchens & Granite Robert Palmer, Weed Pro

www.ncbia.com

page 15

Lots Account for 17% of New Home Sale Prices BY NATALIA SINIAVSKAIA Earlier this month we published two blogs highlighting record-small sizes and record-high prices of new single-family lots. Extending this analysis and incorporating data on new home sale prices shows that, on average, lot values accounted for less than 17% of sale prices of new single-family homes started in 2016, the lowest share since at least 1999. Regionally, the share of new home sale prices attributed to lots varied from 26% in New England to 14% in the East South-Central division.

The shares considered in the above analysis are averages. To make sure these are not heavily influenced by extreme outliers or Census Bureau’s masking procedures, the entire distribution of the shares of sale prices attributed to lot values is analyzed.

Nationally, the share of lot values in new home prices fluctuated around 20% during the housing boom years, peaked at 21% in 2009 and has been declining ever since, despite the rising and record-setting lot prices. The declining share of new home sale prices attributed to lots suggests that other construction costs, including cost of labor and materials, are outpacing the rising lot values. These findings are consistent with the results of NAHB’s proprietary construction cost survey last conducted in 2015. Even though, NAHB’s survey shows slightly higher share of finished lots in single-family home sales prices and the declining share trend starting in 2007. The similar pattern – with the share of sale prices attributed to lots declining after the housing boom years – is visible across all regions of the United States. Most divisions registered their highest shares in 2009, but the New England and Mountain divisions hit their peaks earlier in 2007, while the West North Central division – in 2006. New England stands out for having the largest and most expensive lots that account for more than a quarter of sale prices, the highest share in the nation. New England’s strict zoning regulation undoubtedly contributes to high lot prices and their remarkably high share in sale prices of new single-family homes.

Looking at all new single-family homes started in New England in 2016, more than half of the homes have lots accounting for a quarter or more of the final sale price. There are barely any homes with lots accounting for less than 16% of the sale price. In stark contrast, more than half of single-family homes started in the East South-Central division have lots that account for less than 16% of the sale price and there are barely any homes with lots accounting for a quarter or more of the sale price.

The Middle Atlantic and Pacific division are next on the list, with about one fifth of new home prices reflecting lot costs. The East South-Central division established the lower bound on the contribution of lots to sale prices of new single-family homes – 14%. Remarkably, the rest of the country does not show much variation with lots accounting for about 16% to 17% of sale prices.

The analysis above is limited to single-family detached speculatively built homes. Custom homes built on owner’s land with either the owner or a builder acting as the general contractor do not involve the work of a professional land developer subdividing a property. Therefore, in case of custom homes, lots refer to owner’s land area rather than lots in conventional sense. The data are from the 2016 Survey of Construction.

page 16

www.ncbia.com

october 2017

Most Local Economies Grew at a Slower Pace in Q1 2017

In 2016, the population in the District of Columbia was 681,170. In contrast, the average population across the 50 remaining states was 6.5 million, 9.5 times larger than the population of the District of Columbia. Total GDP in the District of Columbia in the first quarter of 2017 was approximately $110 billion while the average value of production across Only 15 states saw an acceleration in its annualized rate of growth from the remaining 50 states was about $328 billion, which is 3 times greater the last quarter of 2016 to the first quarter of 2017 while 35 states and than the GDP of the District of Columbia. the District of Columbia recorded a slowdown in growth over the same period, including seven states moving from growth in the fourth quarter Across all the states and the District of Columbia, real GDP growth in the of 2016 to a decline in the first quarter of 2017. As a result, nationwide, first quarter of 2017, ranged from an increase of 3.9 percent in Texas to growth in real GDP slowed over the first quarter of 2017. a decline of 4.0 percent in Nebraska. BY DANUSHKA NANAYAKKARA-SKILLINGTON Real gross domestic product (GDP) increased in 43 states and the District of Columbia in the first quarter of 2017, according to the U.S. Bureau of Economic Analysis.

In the first quarter of 2017, the 10 largest state economies were: • California • Pennsylvania • Texas • Ohio • New York • New Jersey • Florida • Georgia • Illinois • North Carolina

The top 10 fastest growing states are shown in the figure above. In the table below, the strongest and weakest contributors to overall growth in the top 10 fastest growing economies over the first quarter of 2017 are Combined, these economies accounted for 56.3% of nationwide GDP. listed. Contributions to GDP encompass both its size and the rate of However, the size of the largest state economies in part reflects the size growth across each industry in the states’ economy. of their population. As described in the table below, manufacturing, mining, and real estate Per capita GDP captures the average value of production per person. and rental and leasing were the strongest contributors to growth in 9 of Using population figures for 2016, the latest available data, the 10 largest the 10 fastest growing states. Meanwhile, retail trade and agriculture, state economies per capita GDP for the first quarter of 2017 were: forestry, fishing, and hunting were the weakest contributors in 8 of the • District of Columbia • Alaska top 10 fastest growing states. • Massachusetts • North Dakota • Connecticut These tables provide information about the economy for each individual • California • New York state. • Wyoming • Delaware • Washington

october 2017

www.ncbia.com

page 17

Executive Officer’s Report by Judie Docs, CSP, MCSP, MIRM, CMP, CGP

As you plan your budget for next year, we hope you will keep the NCBIA in mind. Our association offers numerous sponsorship and advertising opportunities throughout the year, targeting both members and consumers. Where would you like to take your marketing efforts in 2018? Are you looking to target home builders? Small business owners? Homeowners? Would you like to be a part of our larger events such as our Home Show, General Membership Meetings, Golf Classic or Clambake. Or do you prefer a smaller event?

The sheer number of events and opportunities we offer can be overwhelming, so we have produced the NCBIA 2018 Marketing Guide included in this newsletter to help you plan your involvement for the coming year in advance. All opportunities featured are accompanied by descriptions to give you a better idea of what it is about. The NCBIA 2018 Marketing Guide highlights most of the opportunities produced throughout the year, but additional items may be available as well. Sponsorships are payable in One Lump Sum or Three Equal Payments. Prices are subject to change, so we encourage you to submit your selection sheet to protect your investment. Please feel free to contact me for any additional information, or to schedule a private meeting to discuss.

We offer sponsorships to fit any budget! The NCBIA 2018 Marketing Guide will serve as your road map on how to add value to your membership, build relationships and generate recognition for your We appreciate you looking to the NCBIA as a partner in your marketing company in front of your industry peers, and the public. We provide efforts. We hope that you look to the coming year with as much members, sponsors and partners an abundance of ways to achieve anticipation as we do! professional development and recognition.

EPA Relaunches Smart Sectors Program to Collaborate with Industry NAHB joined EPA officials in Washington on Wednesday as the agency relaunched its Smart Sectors program, a business community partnership to develop sensible regulations while protecting the environment and public health. Representing the residential housing industry, NAHB Senior VP of Regulatory Affairs Susan Asmus reminded EPA officials that “We have to be cognizant of the impact of regulations on small businesses because the majority of the nation’s home builders construct less than 10 homes a year. Home builders want a regulatory structure that is timely, consistent and predictable. As an industry, we want sensible regulatory programs with straightforward compliance requirements.” NAHB also noted that a key component of smart regulation is ensuring that local, state and federal agencies work together to streamline permit processing. As the Smart Sectors program moves forward, NAHB will continue to provide the EPA with commonsense solutions to help relieve regulatory burdens that often delay construction and raise the cost of housing for consumers. Smart Sectors originally launched in 2003, as an outgrowth of EPA’s Common-Sense Initiative developed during the Clinton Administration. However, it was discontinued in 2009. EPA hopes the new program will also streamline its internal operations. “The Smart Sectors team will help address executive orders on regulatory reform, energy independence, permit streamlining and the reconsideration of major regulation,” the agency said.

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october 2017

OSB Prices Up Nearly 20% Since September 2016 The price of OSB increased 4.4% in September and has risen 19% and 38% since September and January 2016, respectively. The surge was in contrast with moderate increases in prices paid for gypsum products (+0.3%) and ready-mix concrete (+0.2%). The price of softwood lumber fell 0.9% in September, according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. After declining by a total of 4.1% in June and July, the OSB price index has increased 7.5% over the past two months.

2. The index does not include prices paid for Canadian products as it does not include imports (just as the consumer price index does not reflect prices paid for exports). The economy-wide PPI advanced 0.4% in September after a 0.2% increase in August. The increase was driven by 0.7% and 0.4% gains in prices paid for goods and services, respectively. Final demand prices for core goods (i.e. goods excluding food and energy) increased 0.3% and has increased in all but one of the last 11 months. Final demand prices less food, energy, and trade services rose 0.2% for the second consecutive month. Over 60% of the increase in prices paid for services was due to a 0.8% advance in margins for final demand trade services (i.e. changes in margins received by wholesalers and retailers). In contrast, prices for residential real estate loans fell 2.6%.

More recent data published by Random Lengths shows an even steeper increase over the past year in the price paid by end-consumers (e.g. builders and remodelers) for OSB.

Contrary to most buildersâ€™ experiences in September, the BLS report showed prices paid for softwood lumber declined over the month. Even so, the index is substantially higher than it was when litigation was initiated in the softwood lumber trade dispute in November 2016. Two important factors drive the disparities between price changes builders have experienced and the PPI index changes: 1. The producer price index tracks prices paid by wholesalers, distributers, and retailers rather than what those businesses charge customers. october 2017

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Treasury to Withdraw Two Regs that Would Hinder Home Building have prohibited most development districts, which are used in many states to finance the construction of sewer systems, water lines and other infrastructure necessary to incorporate a new development into a city, from issuing tax-exempt municipal bonds. For example, community development districts in Florida, municipal utility districts in Texas, metropolitan districts in Colorado, and rural utility districts in California have been set up to issue tax-exempt bonds to finance public infrastructure for a wide array of development projects. NAHB had urged Treasury to rescind this rule that would have severely limited such districts. Two wins for reducing unnecessary roadblocks for home builders came out of the U.S. Department of the Treasury today, as it announced plans to withdraw two proposed regulations that NAHB has said would be costly and burdensome.

As we reported in July, the Treasury Department had identified eight tax regulations that were considered burdensome, costly and ineffective. These are two regulations from that list. NAHB backed the rescinding of the eight listed burdensome regulations, with particular concerns about the rule that would have restricted eligibility for developments that are In its announcement, the Treasury said it plans to withdraw proposed deemed “political subdivisions.” regulations under Section 2704 that would have hurt family-owned and operated businesses by limiting valuation discounts. The regulations “The withdrawal of these two regulations is a big win for the home would have raised taxes on family businesses when an owner passes building industry,” said J.P. Delmore, AVP of Government Affairs at away and chooses to leave the business to the next generation. NAHB NAHB. “Home builders benefit in a real way knowing they can pass and others warned that the valuation requirements of the proposed down their company to a family member without the government regulations were not sensible from an economic standpoint, were blocking their way. And when new development can be financed through unclear and could not be meaningfully applied. development districts — providing a cost-effective mechanism to fund the infrastructure needed for new development — it’s a win for the entire Treasury also plans to withdraw proposed Section 103 regulations on community.” For additional information, contact David Logan at 800the definition of political subdivision. The proposed regulations would 368-5242 x8448.

NEW HOME BUYERS LIMITED WARRANTY BOOKS NOW AVAILABLE Warranty book Updated and Available FOR ONLY $20 EACH! In a binder so you can include other walkthrough documents, warranties, etc.

Email your order to kelli@ncbia.com or call the NCBIA Office at (440) 934-1090 page 32

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october 2017

Photo Gallery -- Clambake October

october 2017

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Photo Gallery -- Clambake October

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geico.com/disc/nahb 1-800-368-2734 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 ÂŠ 1999-2016. ÂŠ 2016 GEICO

So Long, Farewell, See You Again Soon! Hello NCBIA members and friends. It is with joy, as well as with a heavy heart, that I announce that I am resigning as your North Coast BIA Promotions, Marketing and Creative Director at the end of my work day on Tuesday, October 31st. I have been connected with this association for the better part of my adult life (more than 27 years) first as a member, then as a member and company partner, and then as an employee.

I want to take a moment to thank all of the Executive Officers under whom I have worked in this capacity: Bob Sexton, Jean Sexton, Rocco Fana, Jr., and Judie Docs. I have learned so much from each and every one of you about how to lead non-profit organizations, including what to do and what not to do. You have provided me the opportunity to hone my skills while making sure that I had time for my family commitments. I also would like to thank all of the Presidents and Board members with whom I have worked during my tenure. You are all amazing and I will miss you, too.

Please know that as I will once again be a member of this association, When I interviewed for this position in 1999 with then Executive Officer you will all continue to see me. I wish you all good luck in the future and Bob Sexton, I had no idea how all of you would change my life in ways I hope to connect with you all again soon. that I could never imagine. Hundreds of members have come and gone since I have been involved with this great association and I have been Kelli Moss honored and privileged to have been affiliated with every single one of Promotions, Marketing & Creative Director you. North Coast Building Industry Association As of November 1, 2017, I will again be a member of this association as I move on to work as the Chief Communications Officer at Advocacy 4 All. The opportunity to continue what I love to do for a company that is an advocate for victims of domestic violence gives me a chance to use my talents to help those who are less fortunate than me.

october 2017

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THANK YOU SPIKES!

STATESMAN SPIKE (500-999 SPIKE CREDITS) Bob Yost.......................Dale Yost Construction............................ 605.25 SUPER SPIKE (250-499 SPIKE CREDITS) Mary H. Felton...........Fidelity National Title............................. 368.00 Terry Bennett...............Bennett Builders....................................... 297.75 ROYAL SPIKE (150-249 SPIKE CREDITS) Jack Kousma...............Kousma Insulation................................... 233.50 Chris Majzun Jr. .........Majzun Construction............................... 228.00 Bill Perritt....................Perritt Building Co................................... 220.50 Bucky Kopf..................Kopf Construction Corp......................... 190.00 Randy K. Strauss........Strauss Construction............................... 175.00 Bill Comerford............Hovey Kaiser Insurance Associates...... 173.50 Jeff Hensley.................Lake Star Building & Remodeling......... 162.25 RED SPIKE (100-149 SPIKE CREDITS) Tom Lahetta................Tom Lahetta Builders.............................. 137.00 Chris Majzun Sr..........Majzun Construction............................... 101.00 GREEN SPIKE (50-99 SPIKE CREDITS) Patrick Shenigo...........ShenCon Construction, LLC.................. 96.50 Thomas Caruso...........Caruso’s Cabinets.................................... 91.75 Tom Sear......................Ryan Homes............................................. 91.25 Mike Lapos..................Lapos Construction................................. 75.50 Chris Mead..................Maloney & Novotny, LLC...................... 64.00

Sara Majzun- Garwood.... BCT Alarm Services................................. 62.50 Aaron Kalizewski.......Grande Maison Construction................. 57.50 Ray Allen Thom..........Thom Concrete ........................................ 50.50 LIFE SPIKE (25-49 SPIKE CREDITS) Jason Scott...................North Star Builders.................................. 39.00 Steve Schafer...............Schafer Development.............................. 30.50 Jeremy Vorndran........84 Lumber................................................. 30.50 John Daly.....................Old Republic Title.................................... 25.50 BLUE SPIKE (6-24 SPIKE CREDITS) Liz Schneider..............Dollar Bank............................................... 18.50 Ken Cassell..................Cassell Construction................................ 13.50 Jason Higgins..............Sunnyside Chevrolet............................... 14.00 Chris Collins...............Carter Lumber Company....................... 12.50 Michelle Nowlin.........First Federal Savings of Lorain.............. 13.00 Tom Ostrander............84 Lumber Co........................................... 11.50 Tami Lanphere............Town Money Saver.................................. 10.50 Jeff Lugar.....................ABC Supply Co........................................ 10.0 Keith Martin................MBD Homes............................................. 9.00 John Wargo..................Mason Structural Steel............................ 6.50

Our SPIKES are Our FOUNDATION

ST. JUDE DREAM HOME

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Eliminate the Dust: Complying with the New Silica Standard As NAHBNow has reported, the Occupational Safety and Health and notify them they need to comply before continuing their work. Not Administration (OSHA) has decreased the permissible levels of all dust clouds are necessarily silica — some alternative products are on exposure to crystalline silica for construction. the market like drywall mud that contain no silica. But you need to check the product’s safety data sheet (SDS) to be sure. NAHB has told policy makers from the start that this wide-reaching rule will be difficult to meet and enforce. But it’s the law of the land, pending How prepared are home builders in the industry for this rule? any change from NAHB’s legal challenge still outstanding. I think this is still in a really early stage in terms of implementation by Dan Johnson, CSP, managing partner of SFI Compliance Inc., a national builders and contractors. It’s very important to go to OSHA’s website safety consulting firm and member of the NAHB Safety Committee, told and to use the materials from NAHB to take the necessary actions to us what home builders need to know to comply with the new rule and get into compliance. The 30 day “good faith” compliance period will end avoid fines. soon, so builders really need to get a firm hold on this. It looks like you’re going to be busy. It is a far-reaching standard, and a challenge to comply with in many ways. Home builders definitely need to be aware of this. Even if you use subcontractors, builders may still have oversight responsibilities for the job site. OSHA, under its multi-employer citation policy, calls that the “controlling employer.” As the CE, the home builder has general oversight responsibility over the job site, including the power to correct safety and health violations itself or require others to correct them. This creates potential liability for the builder if crystalline silica exposures above the permissible levels are present. What materials or actions create silica dust? Silica naturally exists in things like soil, stone and granite. It becomes an exposure issue for workers when dust is created from the many work processes of home building including drilling, chipping, sawing and sanding materials like tile, concrete, brick, stone, fiber cement siding and others. In short, it’s really about the dust. How can silica dust be mitigated to meet this rule? For your subcontractors, or you if it’s your team doing the work, it’s a matter of keeping silica dust out of the air so that it is out of the breathable zone of the worker. The two main ways to eliminate the dust is to vacuum as the dust is being created or spray water to keep it from going into the air. Both can be accomplished with add-on attachments to power tools or with the use of specific tool models. You can use a jackhammer with a water delivery system, for example. Or you can use a shroud and dust collection system on a handheld drill. What is your advice to home builders? I’d reach out to every single subcontractor I have and alert them in an e-mail or other written communication and ask for written confirmation that they are aware of and complying with the silica requirements. And I’d save that documentation. Remember, if it happens on your job, you have potential liability. If I walk up to my job site and see a dust cloud, it’s my responsibility in supervising the work site and the overall build to stop that contractor october 2017

I also think there will be some surprises, especially among smaller builders. A guy doing 10 homes a year may not even know about this rule. I think this will catch those home builders off guard. How have you seen builders and contractors going about meeting this rule so far? Any examples? We worked with a cabinet installer, who actually did a lot of the legwork and research herself and did a great job. She knew she drilled and installed material into concrete, therefore creating silica dust, and went to the Table 1 instructions from OSHA’s silica rule, and opted to buy a drill with dust collection system and knew she had to use a specific filter vacuum. So that’s the ideal scenario: A contractor identifies that an aspect of the work they do causes silica dust, and they seek out a means of keeping it out of the air. What about respirators? That’s actually a pretty tricky aspect of all this. If you cannot keep all dust out of the air in the first place, you can use respirators to help keep the airborne silica out of your workers’ lungs and monitor the air content of your work site for silica yourself. Under this method, your workers are also required to have medical evaluations performed on them if they wear respirators for 30 days or more in a year. But keep in mind, if an employer chooses to use respirators, those respirators have to be used correctly. That includes being clean shaven to have a proper seal on the worker’s face, and ensuring the worker is trained, fit tested and medically cleared to use the respirator. Since it is more difficult to breathe with the device, heart and other conditions can make them dangerous to use. And again, you’re taking the risk that the worker will consistently and properly use the device, when they have a lot of other things taking their focus on the work site. That said, it’s important to note too that for durations of exposure lasting more than four hours per day, and depending on indoor or outdoor conditions for the worker, respirator use may be a requirement of Table

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Eliminate the Dust: Complying with the New Legislative Review - Report #11 Silica Standard (continued from page 31) TAX RELIEF PROPOSED FOR RESIDENTIAL DEVELOPMENT

1 — even if you are using dust collection or water delivery. You really Rep Derrek Merrin (Maumee) introduced HB 371 this week. The bill is have to do your homework. intended to encourage residential lot development in Ohio, help ease the burden of lot shortages and grant a sense of equity for property owners How to do you go about helping your clients with silica compliance? from unfair property valuations. The bill would limit the revaluation of We share the information I’ve mentioned here and the documentation residential lots to a point when construction of the home begins. This from OSHA, and we help the client identify all the areas where silica is fair in that until the home is built and occupied there is no increased dust can be created in their work process so that they know what to burden on the political subdivision for services. watch out for. We also have developed a checklist that home builders and remodelers can share with their subcontractors to help make them Hopefully, the bill will encourage land development by granting a benefit aware of the silica requirements and get their commitment that they are where the lots may be absorbed at a slower rate. The bill is very in compliance. technical in its language as it deals with how property is valued and Resources OSHA’s website has the details of the enhanced requirements that took effect Sept. 23. NAHB has a Silica in Construction Toolkit that includes helpful guidance and a set of tools and products sold by manufacturers to aid in compliance. These products and claims have not been verified by NAHB, but serve as a helpful start for home builders and contractors as a reference.

taxed, but the intent is clear. Property taxes at the fully improved rate will not be assessed until construction begins. Rep Merrin is to be commended for his interest in helping the industry. He worked closely with our members at the Toledo HBA in its drafting and introduction.

Be sure to thank the following cosponsors who have added their name to the bill in support. For additional information, contact Rob Matuga at 800-368-5242 x8507. Rep.Schaffer (Lancaster), Rep.Seitz (Cincinnati), Rep.Lang (WestChesterTwp), Rep.Kick (Loudonville), Rep.Becker (UnionTownship), Rep.Vitale (Urbana), Rep.Riedel (Defiance), Rep. Brinkman (Cincinnati), Rep.Romanchuk (Mansfield), Rep.Keller (Middletown), Rep.Hood (Ashville), Rep. Zeltwanger (Mason), Rep. Dean (Xenia), Rep. Goodman (Cardington) Otherwise, call your state rep and urge them to sign on as a cosponsor as well. The bill will soon be referred to a committee and OHBA will urge prompt hearings. A copy of the bill and fiscal analysis is included. Please take special note on page two of the analysis where the depressed state of the industry is laid out in plain terms. In 2003 53,410 residential units were permitted in Ohio. By 2013 that number plummeted to 13,343, a 75%decrease. These are numbers from the legislative research agency. If they would have looked back further, the level of starts in 1972 was just under 90,000 units authorized. Clearly, some relief is in order.

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october 2017

Fiscal Note & Local Impact Statement Bill: LSC 132 1596 of the 132nd G.A. Status: As Drafted Sponsor: Rep. Merrin Local Impact Statement Procedure Required: Yes Subject: Exempts from property tax the increase in value of land that is subdivided into residential lots with streets and utilities installed, until construction of dwellings starts State Fiscal Highlights • No direct fiscal effect on the state. Local Fiscal Highlights • By providing a tax exemption for the increase in value of subdivided parcels until residential building construction starts, the provisions of the bill draft could result in loss of revenue to school districts and other units of local government. • The magnitude of such losses might range into the low millions of dollars but appears indeterminate. Detailed Fiscal Analysis The bill draft exempts from property taxation any increase in taxable value of land subdivided for construction of residences, until construction starts on the residence buildings. This tax exemption is not ended by construction of streets, sidewalks, curbs, or driveways or by installation of utility lines. The taxable portion of value is based on the value of the property prior to presentation to the county auditor of a plat subdividing the original property from which the subdivided parcel is subdivided. These provisions have the potential to result in loss of property tax revenue. Building permits for new units give a fairly accurate picture of Ohio home building, as the data published by the U.S. Census Bureau cover 93% of the state’s population for one-, two-, and threeunit residential structures, and 100% for structures with four or more units. Permit issuance will not match new construction exactly, as some structures for which permits have been obtained may not be started or completed, and some structures in permit-issuing areas may be started without permits. In 2016, permits were obtained in Ohio authorizing construction of 22,816 housing units, including 15,221 single-family homes. Lots on which single-family homes are to be built would be more likely to qualify for the tax exemption in the bill draft, because of the requirement for exemption that the property be subdivided. With an apartment building, the structure might be built on a single parcel, though perhaps the site where a future apartment building is to be constructed could be subdivided, if the bill draft becomes law, in order to qualify for the exemption.

and suburban areas. The effect of tax exemption under the bill draft on school districts and other units of local government would be similarly concentrated. In 2016, six predominantly urban and collar counties – Franklin, Delaware, Hamilton, Warren, Butler, and Lorain – accounted for more than half of total housing units for which construction was authorized by permit issuance. The top 15 counties, in four clusters around the largest cities in the state, accounted for more than threefourths of permit issuance. The pattern is similar for issuance of permits for construction of single-family housing, with nine counties accounting for more than half of these permits in 2016. Whether revenue loss would occur for a particular parcel that is part of a subdivided property would depend, under the bill draft, on the timing of (1) presentation to the auditor of the subdividing plat and (2) commencement of construction. For parcels on which construction commences in the same tax year that the plat is submitted to the auditor, no tax exemption would result. If construction starts in a subsequent year, the revenue loss, if any, for a particular parcel would depend in part on the timing of these events relative to the sexennial reappraisal or triennial update in the county where the parcel is located. The county auditor, in establishing taxable values, may consider the sale price of a property in an arm’s length transaction, and may but is not required to change property valuations between the years of reappraisals or updates. Between such years, if a higher value is not ascribed by the auditor to a subdivided residential parcel prior to the start of construction, no revenue loss would result from creation of the exemption under the bill draft. With a one-year lag between presentation of the subdividing plat and the start of construction, an intervening reappraisal or update would occur about one-third of the time on average. With a longer lag, an intervening reappraisal or update becomes more likely. Lags between initial development of a subdivision and the start of construction of residential structures on individual parcels may occur with any sizable project, and also tend to lengthen when the market turns down unexpectedly. The revenue loss that might result from enactment of the provisions of the bill draft could be substantial but appears indeterminate. LSC is not aware of published sources for the statewide value of the land to which the bill draft would apply before and after subdivision and improvement with streets and utilities, but before the start of building construction. Nevertheless, for a range of assumptions that seem plausible, we can infer that the cost might be more than minimal, and possibly sizable. The following figures are intended only to be illustrative, and are not a definitive analysis of the fiscal effects of the bill draft.

The number of permits issued varies widely over time in Ohio, from a high for recent years of 53,041 in 2003 to a low of 13,343 in 2009, a 75% decline. During the past 15 years, from 2002 through 2016, the median number of permits issued was for 19,965 housing units, in 2014. The average number of permits issued was for 26,131 housing units, reflecting the higher rate of permit issuance in 2006 and earlier, prior to the 20072009 recession.

One published indicator of the value of undeveloped land is the market value attributed to land enrolled in the current agricultural use valuation (CAUV) program. For the nine counties that accounted for more than half of single-family housing permits in 2016, the market value of CAUV land averaged about $6,500 per acre. This figure can be expected to understate the acquisition cost of raw land for subdivision into parcels for housing developments, as it would include land that is less desirable for such development because of location within these counties, as well Issuance of building permits in Ohio is highly concentrated in urban CONTINUED ON PAGE 34 october 2017

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Fiscal Note & Local Impact Statement

NAHB Supports White house Efforts to Reduce Regulatory Burdens

(continued from page 33)

A display at the as more desirable land. The latter plausibly would tend to have higher White House market value than average CAUV land in counties. regulatory reform event A brief review of listings for land in Delaware County on September on Monday 21, 2017, shown on Realtor.com identified several that appeared to be shows the residential property, at per-acre costs ranging from about $13,000 to growth of $125,000. These are asking prices of property listed for sale. Lot sizes regulations on offer with these particular listings range from 0.24 acres to more from 1960 until than two acres. Other land offered on the website included larger lots today. at locations where they might be sold for commercial or industrial use. The Delaware County Auditor’s website on that date had numerous parcels listed as owned by a major home builder, with market values for the land only ranging from $17,200 to $76,500 identified in a brief A display at the White House regulatory reform event search, for building lots ranging from 0.209 to 0.442 acres. The higher on Monday shows the growth of regulations from valuations reflect annual equalization in 2016, and the increase in value 1960 until today. from that prior to 2016 is an indication of the amount that would be exempted under the bill draft. NAHB CEO Jerry Howard joined Administration and industry leaders at a White House event Monday, highlighting the need to reduce the Combining the data on 2016 building permits with these various market regulatory burden on businesses and the economy. value figures, converting to taxable values by multiplying by 35%, and multiplying by 68 mills (average statewide effective tax rate on residential Vice President Mike Pence, who hosted the event, was joined by the real property in 2016) implies a potential tax revenue loss ranging to a entire cabinet, members of the Republican congressional leadership, few million dollars. Revenue losses might be higher if residential building several governors and approximately 100 industry leaders. Pence activity continues to strengthen. cited the Administration’s progress on regulatory reform across federal agencies and its plans to continue working on regulatory relief moving Residential building is highly cyclical, and the revenue losses that would forward.“Residential construction remains one of the most heavily result from enactment of the bill draft could vary considerably from year regulated industries in the country,” Howard said. “We are pleased that to year. Schools and other local governments would bear the loss. the Trump administration recognizes the regulatory challenges placed Statewide, school districts account for about 64% of taxes on residential on our industry and that it is taking steps to reduce these burdens.” real property, and other units of local government receive about 36%. U.S. Census Bureau, “Percent of Population in Permit-Issuing Places,” downloaded on September 22, 2017, from www.census.gov/ construction/bps/pdf/pct_pop.pdf. www.lsc.ohio.gov S e p t e m b e r 25, 2017 2 The term “collar county” is used here to denote a county immediately adjacent to a county in which all or most of the largest city in an urban area is located. 3 R.C. 5713.03(B). 1

After the White House event, NAHB was invited to participate in three of 10 breakout sessions hosted by federal agencies, including the Labor Department, Small Business Administration (SBA) and Treasury, to discuss the specific regulations in need of reform.

Here are some recent examples of how NAHB has been working with the Administration and federal agencies on this issue: • Submitted comments to the EPA recommending that the agency revise regulations governing wetlands, storm water and lead-based paint. Please take time to welcome our newest • Organized members to participate in SBA Advocacy roundtables held employee, Ashlyn Bellan. Ashlyn has served across the country, where members gave firsthand accounts of the as an intern for the NCBIA for over 2 years problematic federal regulations they face. and has now joined the association as our new • Submitted comments to HUD about which of the agency’s regulations Administrative Assistant. should be repealed, replaced or modified; and met with HUD Secretary Carson to discuss regulatory and housing affordability issues. Ashlyn is a 2017 graduate of Marion L. Steele • Met with EPA Administrator Scott Pruitt to discuss steps to reduce High School in Amherst and will be beginning regulatory burdens that are raising housing costs for home builders and classes at Lorain County Community College in the spring for Graphic home buyers. Design. While she attends school she will be working for the NCBIA part time to help Judie with anything and everything that needs to be done. “We look forward to helping this Administration deliver meaningful regulatory relief to the industry and, in doing so, generating substantial Please make her feel welcome. You can reach her at the office at (440) local economic activity and job creation,” said Howard. 934-1090 or email her at ashlynncbia@gmail.com.

From Intern to Administrative Assistant

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october 2017

Rep. Young Endorses New OJC Bench Card

Legislation Marked the Beginning of Fight for Small Businesses State Representative Ron Young (R-Leroy Township) announced today that the Ohio Judicial Conference has posted a new bench card. The subject matter is one that Rep. Young has been working on for several years, cognovit notes. Right now, many financial institutions in Ohio offering private commercial loans add a clause onto their promissory notes that allow them to immediately call for and collect a debt without informing the debtor or giving the debtor any opportunity to defend themselves in court. Due to the unfair nature of these cognovit notes, confessions of judgment are outlawed in Ohio consumer loans, such as for cars or homes. The same problems that led to banning them in consumer loans exist in commercial contracts. In fact, a number of other states have actually banned or limited the application of cognovit notes such as Indiana, where it is a crime for lenders to use cognovit notes in consumer as well as commercial loans. When a borrower signs a cognovit note, they are essentially signing away all of their rights. The real effect is that nearly every commercial contractor, doctor, dentist, veterinarian and small mom and pop business in Ohio, potentially signs away their business, their homes, their checking accounts, and their personal property, without notice and without the right to defend themselves even in cases where the lender was at fault. Representative Young first championed cognovit legislation in June of 2015 after many local business owners from his district laid out their concerns with the predatory practices that some of the local financial institutions had taken during the downturn of the economy in 2008-2010. The bench card, which is a guide for courts and was authored by the Ohio Judicial Conference, states ‘IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT, OR ANY OTHER CAUSE.”

Legislative Review - Report #12

OHIO JUDICIAL CONFERENCE ISSUES BENCHCARD ON COGNOVITS Last week, the Ohio Judicial Conference (OJC) posted a new bench card dealing with cognovits judgments. The bench card includes a checklist of six items which must be answered in the affirmative before a judge determines the cognovits note is valid and can be enforced against the debtor. The sixth item on the checklist reads, “default consists of nonpayment on note, rather than default of other provisions unrelated to the payment”. Representative Ron Young endorsed the action by the OJC, saying this is a win for businesses, and deals with a subject matter he has been working on for several years. Most recently, Young sponsored HB 67 which had received hearings in house committee earlier in the year. OHBA members, George Davis and Rick Puzzitiello, testified in support of HB 67, effectively explaining the impact on their october 2017

Many financial institutions throughout the state were simply ignoring the phrase “If you do not pay on time” and were declaring judgement for reasons beyond a clear reading of the law. The bench card will help prevent that and will increase uniformity of decision-making across Ohio. The bench card declares that six questions must be able to be answered in the affirmative in order to validate a cognovit judgement against a debtor. The major change is that courtrooms across the state will now be advised to only approve a judgement against the debtor where nonpayment has been verified. The questions are as follows: • Original Note produced and Complaint has copy of note attached as exhibit? • Complaint includes statement regarding last known address of the defendant either in averment or within caption? • At least one maker resides in jurisdiction or Note executed in jurisdiction where Complaint is filed? • Note includes “warrant of attorney” with statutory language above or below signature? “Warning — By signing this paper you give up your right to notice and court trial. If you do not pay on time a court judgment may be taken against you without your prior knowledge and the powers of a court can be used to collect from you regardless of any claims you may have against the creditor whether for returned goods, faulty goods, failure on his part to comply with the agreement, or any other cause.” • The Note does not arise from a consumer transaction? • Default consists of nonpayment on note, rather than default of other provision unrelated to payment? “As a result of this action from the OJC, my initial offering in the form of a bill, that would support a literal reading of state law, is now unnecessary,” according to Rep. Young. He continued by saying, “I am grateful to the Ohio Judicial Conference and the Ohio Supreme Court for their work on this issue.” It is good to know that small business owners across the state will uniformly be protected and there is a state-wide standard of judicial interpretation of cognovit judgements.” For more information, please contact Bob Reed at (614) 644-6074 or Bob.Reed@OhioHouse.gov.

businesses with cognovits being exercised by lenders for nonmonetary reasons. A copy of Representative Young’s press release is attached. Please feel free to contact OHBA with any questions. OHBA FALL BOARD MEETING OHBA Fall Board of Trustees Meeting is scheduled for Tuesday, November 14th at the Hilton Easton in Columbus. At this meeting you will obtain updated information on issues affecting the industry, election of 2018 officers, top awards will be given and find out who the 2017 The Best of Ohio Homes winners are. Meeting information has been sent out. If you need information, please contact build@ohiohba.com or 614-228-6648.

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Photo Gallery -- Clambake October

Thank You to all of our members, friends, colleagues who attended, sponsored and supported this event! page 42

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october 2017

Worker’s Comp Update

“Around here, however, we don’t look backwards for very long. We keep moving forward, opening up new doors and doing new things, because we’re curious…and curiosity keeps leading us down new paths.” ~Walter Elias Disney In keeping with the back-to-school season and doing new things, CareWorksComp has a few educational opportunities to share with you that we hope you will consider: A Risk Reduction Workshop, and TwoHour Group Safety Training classes. Information for these is included here, as well as some updates from our Safety and Unemployment Departments and more thoughts on our strategic implementation of cost containment measures. One important deadline coming up:  November 13, 2017: Group Rating enrollment deadline. Please return your enrollment documents to be filed in the 2018 program. If you are already in group rating and qualify for the 2018 rate year, you will be automatically renewed into next year’s program. Risk Reduction Workshops: CareWorksComp is pleased to invite customers and non-customers to an exclusive Ohio Workers’ Compensation Workshop: “How to Apply Intermediate and Advanced Risk Reduction Solutions to Ohio Workers’ Compensation.” Please see the attached flyer for details. This workshop will offer valuable strategies to keep your BWC premiums down, we highly suggest attending this workshop. (*Attendance at the Risk Reduction Workshop does not count toward the BWC Two Hour Group Safety Training Requirement for the current 2017 Rate Year!) Two Hour Safety Training Sessions: We are also pleased to offer Two-Hour Safety Training which meets BWC’s requirement for group rated and group retrospective rated employers. You have two sessions to choose from, 9:00-11:00am or 1:00-3:00pm. We have a session open in Dublin on December 5, 2017. Detailed information is included. OSHA Electronic Filing Updates: As a reminder, the electronic reporting of OSHA300A Log has been moved to December 1, 2017 (the online reporting form went live on August 1, 2017.) If you are not sure what your establishment’s responsibilities are in reference to the electronic reporting standard, please feel free to contact Jim Wirth, at 614.827.0370 or jim.wirth@careworkscomp.com. More than 5,000 Ohio businesses are missing out on rebates from the Ohio Bureau of Workers’ Compensation: The Ohio BWC issued more 160,000 checks in July as part of a $1.1 billion rebate to Ohio businesses. According to the BWC, there were 5,534 checks totaling $9.8 million that Ohio businesses have yet to cash. Time is running out to cash them. One check is for nearly $203,000 and 152 are for at least $10,000. Uncashed checks will expire 95 days after they were issued. The BWC recently emailed notices to the affected businesses. The bureau can reissue checks that aren’t cashed, but there will be a delay. For additional information, contact the Ohio BWC at www.bwc.ohio.gov or 1.800.644.6292. 2018 Group Programs: CareWorksComp has sent group rating and group retro offers and renewals to our current clients; your business may be eligible for both programs (we refer to this as “dual eligibility”.) We are happy to discuss these options with you, as each year there may be a different mix of cost-saving strategies that

work best for your company. Contact Bob Nicoll, Program Manager with any questions: robert.nicoll@careworkscomp.com or 800-837-3200 Ext 58595. Unemployment Tax Season: Unemployment tax season is fast approaching, and we offer you the opportunity to reduce this business expense through the CareWorksComp Claims and Tax Management Service. Last year, just one component from this program reduced our customer’s annual unemployment costs by as a much as 10%! o Ohio Department of Job and Family Services (ODJFS) allows commonly owned businesses (common ownership for two or more business entities) to apply for a common/joint tax rate for 2018 to reduce their unemployment tax liability. This strategy can significantly reduce an organization’s unemployment costs. o CareWorksComp can complete a common/joint rating analysis to determine your amount of savings. In addition, customers taking advantage of the common/joint rating analysis will also benefit from a special reduced service fee. o To enroll, please contact Kammy Staton, our Unemployment Manager, at 614.526.7165 or kammy.staton@careworkscomp.com Since applications for common rating must be filed with ODJFS no later than 12/31/17, we have a very short time frame to finalize this agreement and complete the savings analysis. If you have any questions please contact Kammy Staton, our Unemployment Manager, at 614.526.7165 or kammy.staton@careworkscomp.com. More on our Cost Containment Strategies: Here is a detailed look at how and why we do what we do with handicap reimbursements and settlements. With regard to Handicap Reimbursements, CareWorksComp guarantees our customers that we will review all lost time claims that are eligible for the BWC’s Handicap Reimbursement Program. Each claim in which an eligible handicap condition is identified will be filed within the BWC’s prescribed filing time limitations. With regard to Lump Sum Settlements, we will only make settlement recommendations that produce a favorable outcome for the employer. When reviewing a claim for settlement potential, we will: • Review current claims costs as the starting point for all settlement negotiations. • Estimate and utilize future medical and compensation in the settlement proposal. • Consider your program enrollment and the impact that a settlement will have on your participation (e.g. Group Retro refund impact.) • Include the injured worker’s current employment status as part of the settlement discussion. Settlement can bring closure to a frustrating and difficult claim that is a drain on your company’s resources and time. Even if a claim is no longer in your experience and impacting your current premiums, settlement can still provide a benefit to you by eliminating the nuisance of ongoing claim activity. The good news is that you have an equal voice when it comes to the terms of the settlement and no settlement can be processed without your consent. Our dedicated Cost Containment Team is here to assist you at every step of the cost savings process! We are available to discuss your account and offer specialized recommendations based on your company’s individual needs.

We’re in the offering NAHB members up to $1,000 business.

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2017 GMC Sierra 1500

2017 Chevrolet Express 2500 Cargo Van

NAHB MEMBERS BENEFIT FROM THESE SPECIAL OFFERS. Members of the National Association of Home Builders (NAHB) can now enjoy a private offer1 of up to $1,000 toward the purchase or lease of most new Chevrolet, Buick and GMC vehicles. Choose an eligible vehicle at your local dealer and present your NAHB proof of membership. You can add on incentives from the National Fleet Purchase Program2 and Business Choice3 to get the best value on vehicles that run your business. For private offer details, visit nahb.org/gm.

Example offer for NAHB members who are business owners purchasing a 2017 Chevrolet Express 2500 Cargo Van. Up to

$1,000 Private Offer1

Up to

$4,000

National Fleet Purchase Program (FVX)2

Up to

$1,200

Eligible Accessory Cash Allowance3,4

Up to

$6,200 In Potential Value

1 Private 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 2016 and 2017 model year vehicles. Customer must take delivery by 1/2/18. Not compatible with other private offers. Not valid on prior purchases. Compatible with many current incentives. Incentives are subject to change without notice. Offer excludes Chevrolet Bolt, Camaro, Chevy SS, Corvette, Sonic, Spark, Trax, Volt, Buick Cascada, 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. 2Offer available to qualified fleet customers. Not compatible with some other offers. Take delivery by 12/31/17. See dealer for details. 3To 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. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties, and ordering, consult your dealer or visit gmbusinesschoice.com. Take delivery by 1/2/18. 4 Not eligible on associated accessories from third-party independent suppliers. Not available with some other offers. Take delivery by 1/2/18. See dealer for details. ©2017 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.