December, 2015 Builder Newsletter

December 2015 EDITION
PRESIDENT’S MESSAGE
SDHBA
124 S Euclid Ave, Suite 105
P. O. Box 1218
Pierre, South Dakota 57501-1218
OFFICE (605) 224-2761 FAX (605) 224-0820
WEBSITE www.sdhomebuilders.com
EMAIL sdhbvp@sdhomebuilders.com
Greetings,
Seems like yesterday I wrote the report for the November
Newsletter. Where does the time go?
BOARD OF DIRECTORS
President-Frank Krause, Watertown
1st VP-Jeff Lage, Rapid City
2nd VP– Lynn Mennis, Brookings
Past President-Tim Frohreich, Yankton
Treasurer-Jim Tolley, Black Hawk
Secretary—David Asbridge, Rapid City
State Rep Duane Bickett, Sioux Falls
Nat’l Bldr Director Dwight Eich, Rapid City
Nat’l Alt Bldr Director-George Houtman, Brookings
Nat’l Assoc Director Candi Menke, Sioux Falls
Nat’l Alt Assoc Director-Chane Patten, Sioux Falls
Nat’l PAC Trustee, SD-Curt Cartwright, Rapid City
John Kokales, Aberdeen
Pat Tollefson, Aberdeen
Chris Frost, Aberdeen
Kevin Foss, Aberdeen
Jeremy Muth, Rapid City
Gale Davis, Rapid City
Desi Mendel, Rapid City
Denise Born, Rapid City
Rick Askvig, Rapid City
Ralph Siemonsma-Spearfish
Dennis Buys, Brookings
George Houtman, Brookings
Jeremie Houtman, Brookings
Ronda Houtman, Brookings
Daryl Christensen, Sioux Falls
Matt Swenson, Sioux Falls
Terry Konechne, Sioux Falls
Mike Austad, Sioux Falls
Todd Boots, Tea
Scott Hjellming, Sioux Falls
Peter Ronning, Sioux Falls
Brad Mair, Sioux Falls
Mel Zelmer, Tea
Paul Nelsen, Sioux Falls
Nick Kisch, Yankton
Lee Rettig, Yankton
Lisa DiRose Watertown
Mark Reishus, Watertown
Eric Skott, Watertown
Tony Kneeland, Watertown
Heath Schnee, Pierre
Ryan Krueger, Pierre
I hope everyone and their families had a blessed
Thanksgiving. We have a lot to be thankful for. So let’s give
thanks to the One that has provided these blessings.
I’m thankful to the members for letting me serve you all this
year. It has been a pleasure working for you all. It was an
exciting year with its ups and downs but we made it through.
Thanks to everyone that helped this year, for your guidance
and support. As an HBA family that’s what we do and I will
always be there for you all.
Thank you to all that attended the Fall meeting and banquet.
Congratulations to all the award winners this year.
This year is about over but we still need you to be in contact
with our Senators and Representatives to put an end to Codes
and Regulations that the government is trying to cripple us
with. See the call to action on page 8.
With Jeff Lage taking the reins in 2016 you’re in good hands.
Jeff has a lot of good ideas and I’m confident he will serve us
well as well as Lynn Mennis, Paul Nelsen, Jay Mendel and
Lisa DiRose.
LOCAL HBA PRESIDENTS
Chris Frost, Aberdeen HBA
Jay Mendel, Black Hills HBA
Don DeNure, Brookings Regional HBA
Cully Lebert, HBA of the Sioux Empire
Curt Wieman, Lewis and Clark HBA
Nick Osterkamp, Oahe HBA
Matt Moyer, Watertown Area HBA
Mission Statement
The South Dakota Home Builders Association is a
statewide non-profit trade association made up of
professional builders, remodelers and associate
members. We promote home ownership and quality
affordable housing through active participation in
industry related issues. We are the voice of the
homebuilding industry in South Dakota.
December 2015 Issue
Newsletter of the South Dakota Home Builders Association
So in closing, from my family and me to yours, Merry
Christmas and Happy New Year. May God bless all of you
and keep you safe.
Frank Krause, Krause Construction, Watertown, SD
2015 SDHBA President
South Dakota Builder News
www.sdhomebuilders.com
page 1
Above & Below: Board Meeting
Above: Membership Committee Meeting
Left: Legislative Committee Meeting
Left: Sponsor
Wausau Supply
addresses the
board
Right: Members
check out materials at the sponsor table of
Wausau Supply
December 2015 Issue
South Dakota Builder News
www.sdhomebuilders.com
page 2
Left:
NAHB
Board
Chairman,
Tom
Woods,
gives the
evening’s
keynote
Above: A full house at the SDHBA Banquet
Left and Right: NAHB
Board Chairman, Tom
Woods, installs 2016
SDHBA Board Chairman Jeff Lage
Right: Jeff Lage presents a
plaque of appreciation to 2015
SDHBA President Frank Krause
Left: NAHB Board
Chairman, Tom Woods,
installs State Representative Duane Bickett, President Jeff Lage, 1st VP
Lynn Mennis, 2nd VP
Paul Nelsen, Treasurer
Lisa DiRose, National
Director Dwight Eich
and Secretary Jay
Mendel
December 2015 Issue
South Dakota Builder News
www.sdhomebuilders.com
page 3
Lifetime
Achievement
Award presented to Duane
Bickett (left
picture) and
Jim Lowe
(right picture)
Right: Hall of
Fame Inductee
Kim Hefner-Hines
Far Left: Friend of
Housing Award
presented to Marty
Jackley
Left: Presidential
Award presented
to BHHBA EO
Cheryl Bettmeng
Project of the
Year presented
to HBASE for
the Construction
Club (Left) and
BHHBA for
Leadership
Development
Program (Right)
Above: Jim Tolley, Board
Member of the Year
December 2015 Issue
Above: Lisa DiRose,
Associate of the Year
South Dakota Builder News
Above: Tony Kneeland,
Builder of the Year
www.sdhomebuilders.com
page 4
STATE AND LOCAL ASSOCIATIONS:
Aberdeen HBA
20 12th Ave SW
PO Box 201,
Aberdeen, SD 57401
(605) 225-2055 FAX (605) 225-2365
ahba@midconetwork.com
www.aberdeenhba.com
Upcoming SDHBA Meeting dates:
Winter Board Meeting
Legislative Chili and Oyster Feed
February 3rd & 4th, 2016
The AmericInn, Ft. Pierre
Black Hills HBA
3121 West Chicago St
Rapid City, SD 57702-2313
(605) 348-7850 FAX (605) 348-7864
cbettmeng@blackhillshomebuilders.com
www.blackhillshomebuilders.com
Spring Board Meeting
April 7, 2016
The AmericInn, Ft. Pierre
Brookings Regional BA
510 Main Street, Suite 12
PO Box 323
Brookings, SD 57006
(605) 692-5405 FAX (605) 692-5406
brookingsregionalbuilders@gmail.com
www.brookingsregionalbuilders.com
Lewis & Clark HBA
PO Box 582
Yankton, SD 57078
(605) 661-7215
lchomebuilders@gmail.com
www.lewisandclarkhomebuilders.com
Watertown Area HBA
110 8th Ave SE, Suite 2
PO Box 1271
Watertown, SD 57201
(605) 878-3033 FAX (605) 878-3034
wahba.sd@gmail.com
www.watertownhomebuilders.com
HBA of the Sioux Empire
6904 S. Lyncrest Place,
Sioux Falls, SD 57108
(605) 361-8322 FAX (605) 361-8329
Julie@hbasiouxempire.com
www.hbasiouxempire.com
Oahe HBA
PO Box 221
Pierre, SD 57501
(605) 222-9069 FAX (605) 224-1659
monacha@oahehomebuilders.com
www.oahehomebuilders.com
South Dakota HBA
124 S Euclid Ave, Suite 105
PO Box 1218
Pierre, SD 57501
(605) 224-2761 FAX (605) 224-0820
sdhbvp@sdhomebuilders.com
www.sdhomebuilders.com
Summer Board Meeting
July 28, 2016
The AmericInn, Ft. Pierre
Fall Board Meeting & Banquet
November 3 & 4, 2016
Brookings
Legislative Report
With this year winding down and 2016 on the horizon, we are getting
ready for the 91st South Dakota legislative session. The session opens
at 12:00 PM on January 12th, and runs thru March 29th.
As of right now we are not hearing of any specific bills that will impact
the industry directly in the upcoming session. The upcoming session
will be having education at the forefront. With the Blue Ribbon Task
Force wrapping up, they have moved an unfinished plan forward to the
Governors Office that leans on shifting dollars around and not raising
taxes. I feel we will need to follow this closely just like we did the road
bills last session. We need to see if any new taxes are proposed and see
if they are far for all across the board, and not pointed toward one industry (i.e contractors excise tax). We will have an idea on the direction
that the Governor wants to go next year when he gives his budget address in December.
If you have any questions or comments please feel free to contact me at
tboots.citywideins@gmail.com or cell phone (605) 359-5778.
- Todd Boots, SDHBA Legislative Chair
December 2015 Issue
South Dakota Builder News
www.sdhomebuilders.com
page 5
December 2015 Issue
South Dakota Builder News
www.sdhomebuilders.com
page 6
December 2015 Issue
South Dakota Builder News
www.sdhomebuilders.com
page 7
South Dakota PAC had the best month of fundraising in history!
Sioux Empire started the month with a fundraising night supper on November 2nd. Special guests were Tom Woods, 2015 NAHB President and Ralph
Siemonsma, 2015 Platinum Club Chairman. The nights results were; 2 new Platinum
Clubs, 15 new Gold Keys along with members stepping up as Dollar-A-Day and Century Club.
Special congrats to Paul Nelsen, Kim Hefner-Hines and Todd Boots, along with Sioux Empire
Executive Officer Julie Terrell and staff. Almost $20,000 was raised. Making it a huge success!
At the state board meeting on November 6th, Lisa DiRose from Watertown and Tyler Tribbey
from Black Hills signed up as Gold Keys. Gale Davis stepped up from Dollar-A-Day to Gold
Key at the Black Hills monthly meeting November 17th.
Brookings HBA also had a fundraiser and signed up 2 Dollar-A-Day contributors along with 3
fair share donations for a total of $805. That is a GREAT month of fundraising! Thank you!
- Curt Cartwright, South Dakota Build-PAC Chair
Call Senator Thune Today! Oppose The Use of Mortgage
Guarantee Fees to Fund Transportation Projects!
As Congress debates legislation to renew funding for a six-year highway transportation bill,
NAHB continues to lead efforts to remove a provision that would increase the Fannie Mae and
Freddie Mac guarantee fees (g-fees) to help pay for transportation programs. G-fees are a critical
risk management tool used by Fannie Mae and Freddie Mac to protect against losses on mortgages they have purchased or mortgage-backed securities they have guaranteed. These fees
should only be used for their intended purpose – to ensure the safety and soundness of Fannie
Mae and Freddie Mac – not to pay for spending in unrelated areas.
Negotiations on the transportation bill are now in the final stages and key members in both the
House and Senate have been selected as Conferees to craft the final compromise. NAHB is urging all Conferees to agree to the House position on g-fees and to eliminate the Senate’s proposed
$1.9 billion tax on homeownership.
Call Senator Thune today. These talking points will help you make the case.
Urge Senator Thune to Oppose the use of guarantee fees to fund transportation projects!
December 2015 Issue
South Dakota Builder News
www.sdhomebuilders.com
page 8
LOCAL HBA MEETINGS:
Aberdeen HBA
Board – 1ST Thursday of month, noon at
AHBA Office, Aberdeen, SD
YOUR ADVERTISEMENT
HERE !!!
Black Hills HBA
HAVE 1,700 + PEOPLE
SEE YOUR MESSAGE
EACH MONTH
MAKE IT EASY FOR
PEOPLE TO FIND YOU
& DO BUSINESS
WITH YOU !!!
Board– 3rd Tuesday of month, 3:30 p.m.
at BHHBA
Membership – 3rd Tuesday, @ TBA
Brookings HBA
Board – As needed
Membership – 3rd Thursday of month,
Noon @ TBA
HBA of the Sioux Empire
Reasonable Rates
Full Page $600/12 months
Full Page $70/month
Half Page $450/12 months
Half Page $50/month
Board – 3rd Wednesday of month, 11:30
a.m., HBASE office
Membership—Various Dates & Locations
Check their website for dates & times
Lewis & Clark Area HBA
Board – 1st Tuesday of month, 6 p.m.,
Minerva’s Yankton
Membership—1st Tuesday of month,
7 p.m. Minerva’s Yankton
Call SDHBA 224-2761 or email
sdhbvp@sdhomebuilders.com
Are You Looking For New Opportunities For
People To Do Business With You?
Oahe HBA, Pierre
Membership— First Tuesday of month,
11:30 a.m., Perkins, Fort Pierre
Watertown HBA
Board—As needed
Membership – 3rd Tuesday of month,
7 p.m., WAHBA Office
December 2015 Issue
www.sdhomebuilders.com Can Help You Do That By
Investing In A Banner Ad For Your Business, Or By
Linking Your Web Site Or Email Address To Our
Membership List On SDHBA’s Web Site
12 Month Banner Ad Is Only $150
12 Month Link For Your Web Site Or Email
Address Is Only $65 Or $0 Extra With Banner
Call SDHBA at 605-224-2761 or email us at
sdhbvp@sdhomebuilders.com to get connected.
South Dakota Builder News
www.sdhomebuilders.com
page 9
December 2015 Issue
South Dakota Builder News
www.sdhomebuilders.com
page 10
HIGHER GAS FURNACE STANDARDS SET
While negotiations continue on proposed revisions to federal minimum efficiency standards for residential nonweatherized gas furnaces, the increase that was
decided in the 2007 rulemaking – which includes
increasing minimum efficiency from 78%
AFUE to 80% AFUE –
took effect Nov. 19.
been under consideration
since a more stringent
federal rule was introduced in 2011, which
was successfully challenged in court by the
American Public Gas
Association. The Department of Energy’s current
proposal for nonweatherized gas furnaces
is 92% AFUE, requiring
condensing combustion.
es that have already been
produced can be sold,
but they can no longer
be manufactured. For the
time being, 80% AFUE
is the least-efficient furnace that can be manufactured.
NAHB will continue to
update members if and
when the Department of
Energy settles the challenge and makes a rulAFUE stands for annual Negotiations for modifi- ing.
fuel utilization efficien- cation of this proposed
cy, and is a measure for minimum are still underfurnaces roughly compa- way, but so far have not
rable to the SEER rating led to a replacement or
for air conditioning
supplemental change to
the official federal notice
units.
of proposed rulemaking.
However, increases
above that level have
The 78% AFUE furnacDecember 2015 Issue
South Dakota Builder News
www.sdhomebuilders.com
page 11
SENATE T-HUD SPENDING PLAN WOULD BOOST
FUNDING FOR KEY HOUSING PROGRAMS
At NAHB’s urging, the
Senate is expected to
restore funding for key
housing programs back to
their fiscal 2015 levels.
A summary draft of transportation and HUD (THUD) fiscal year 2016
spending levels released
by the Senate Appropriations Committee shows it
includes an additional $834
million for the Home Investment Partnerships (HOME)
Program, which is the largest federal block grant to
state and local governments designed exclusively
to create affordable housing for low-income households.
This summer, the Senate
Appropriations Committee
slashed funding for the
HOME program to $66 mil-
December 2015 Issue
lion in fiscal year 2016.
NAHB led the charge to
restore the funding for the
HOME program back to its
fiscal year 2015 level of
$900 million
year level. The House has
directed the $133 million
scheduled for the National
Housing Trust Fund to be
transferred to the HOME
program, which would eliminate funding for the trust
The Senate T-HUD spend- fund.
ing plan also contains an
additional $100 million for NAHB will work with lawthe Community Developmakers in both chambers
ment Block Grant (CDGB) of Congress to ensure that
Program, which supports
the HOME program is fundaffordable housing and oth- ed at least at the fiscal
er community revitalization 2015 level of $900 million
initiatives that benefit low- without redirecting any
and moderate-income fami- monies from the National
lies and individuals. This
Housing Trust Fund into
increase would bring fund- the HOME program.
ing for the CDGB program
back to the fiscal year 2015
level of $3 billion.
The House has proposed
$767 million in HOME funding, which is $133 million
below the current fiscal
South Dakota Builder News
www.sdhomebuilders.com
page 12
HOUSE APPROVES NAHB SUPPORTED BILL
TO BOOST CREDIT
The House on Nov. 18 voted
255-174 to approve the Portfolio
Lending and Mortgage Access
Act (H.R. 1210), legislation that
would broaden the definition of
qualified mortgages by allowing
residential mortgage loans held
in portfolio by community banks
to qualify for safe harbor protections.
In a letter of support sent to
House lawmakers before the
chamber voted on the measure,
NAHB said that H.R. 1210 “will
ensure that regulatory hurdles
do not limit the ability of community financial institutions to offer
mortgages to qualified applicants and service the needs of
their customers.”
The Consumer Financial Protection Bureau codified the
Dodd-Frank Wall Street Reform
and Consumer Protection Act’s
Ability to Repay rule at the beginning of 2014. The rule re-
December 2015 Issue
quires a lender to make a good
faith effort to determine that a
borrower has the ability to repay
a mortgage, and that the loan
does not include excessive upfront points and fees.
By allowing residential loans
held in a community bank’s
portfolio to qualify as QMs, this
legislation will allow these community financial institutions to
meet the credit demands of consumers with less threat of costly
The rule established protections litigation.
from liability under this requirement for loans meeting certain Despite House passage, the
standards that define them as
outlook for this legislation is unqualified mortgages or QM. The clear, as the White House has
QM standard is intended to bal- issued a veto threat. In a stateance protecting consumers from ment released on Nov. 17, the
unduly risky mortgages while
White House said it “strongly
providing lenders more certainty opposes the bill because it
about potential liability.
would undermine critical consumer protections by exempting
all depository institutions, large
NAHB Chairman Tom Woods
testified before Congress earlier and small, from QM standards –
including very basic standards
this year in support of H.R.
like verifying a consumer’s in1210, noting that it is intended
come – as long as the mortgage
to ease the ability-to-repay requirements for community lend- loans in question are held in
ers who may be fearful to origi- portfolio by the institution.”
nate non-qualified mortgage
loans.
South Dakota Builder News
www.sdhomebuilders.com
page 13
December 2015 Issue
South Dakota Builder News
www.sdhomebuilders.com
page 14
How to Participate:
Presidential
Candidate
Forum 2016
– Building
Opportunity:
Solutions
for the
American
Dream
December 2015 Issue
January 20
5:00 - 8:00 PM
Event Type:
Candidate Forum
Tickets are complimentary, but
required for this event. Due to the
high level of demand, tickets will be
distributed via a drawing from the
submitted requests. The deadline
to request tickets is Monday,
November 30, 2015.
Location:
You must be a registered IBS
Westgate Las
attendee to request tickets.
Vegas Resort &
Casino - Paradise Event Center You can request to be entered in to
the drawing for tickets during the
IBS registration process, or if you
are already registered, use the
See the 2016 U.S. presidential
candidates present their visions for button on the right to log back into
your registration record and inditackling America’s pressing economic, domestic and foreign policy cate you would like to be entered
issues during this forum presented into the drawing. You will need
by National Journal and sponsored your registration confirmation ID.
by the National Association of
Only one ticket may be requested
Home Builders® (NAHB). The
conversation will be co-moderated per attendee. If your registration
includes a spouse, then an addiby Ron Brownstein, Atlantic Media’s Editorial Director for Strategic tional ticket will be included in the
Partnerships and Jon Ralston, host request.
of “Ralston Live” on Nevada’s PBS
On Thursday, December 3, names
stations. Each presidential conwill be randomly drawn, and
tender who accepts our invitation will appear separately onstage winners will be notified by email
to participate in a discussion with
Winners will be given specific
our moderators, and will aninstructions for claiming their
swer questions from members of
Tickets prior to the Forum.
the audience. Take advantage of
this unique opportunity to hear diPlease see the Official Rules for
rectly from the candidates how
more details.
they would lead our nation as the
next President of the United
If you have any questions about
States.
this event, or if you are a member
of the working press interested in
Doors open at 4:30 pm.
attending, please contact Paul
Lopez at plopez@nahb.org
South Dakota Builder News
www.sdhomebuilders.com
page 15