oct 2013 swmbia newsletter

ECONOMICS

HOUSING STARTSYour resource for locally relevant economic data p.19

CLASSIFIED ADS

NETWORK!List your business card in our classifi eds for $25/mo p.24!

EDUCATION

WEBINARSCheck out the Sept Webinar Schedule on p.15

ASSOCIATION

CALENDARStaying Current with our Current Events? p.8

THE SOUTHWEST MONTANA BUILDING INDUSTRY ASSOCIATION

OCTOBER 2013

2 A S S O C I AT I O N

S W M B I A N e w s l e t t e r | O c t o b e r 2 0 1 3

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4 PRESIDENT’S LETTERNathan Albrecht 2013 Chairman of the board shares his thoughts on current association happenings and relevant industry issues.

5 SPIKE CLUBThe true champions of the NAHB! Check out our current spike ranking and see how you stack up with your fellow members!

5 MEMBERSHIP UPDATESView new and renewing members.

6 EVENT RECAPSummary of our last membership event.

8 SWMBIA EVENT CALENDARCurrent events and committee meetings.

9 MEMBER SPOTLIGHTThis month we are featuring Frog Rock Design, LLC

10 GRIP SAFETYFree member benefi t: Mock OSHA inspections. Learn how these confi dential inspections can help keep your workers safe.

15 WEBINAR SERIESNAHB Webinar series features a monthly series of free and for fee webinars in various diff erent categories.

18 ECONOMIST’S CORNERElliot Eisenberg Ph. D keeping you up to date with building industry economics.

20 PROPOSED CHANGES TO THE IRCFeatured tips from NAHB Business

25 DUES INCREASE ANNOUNCEMENT Important Announcement! List your business card in this section for $35 a month!! Job listings, member to member discounts and industry relevant items for sale.

CO N T E N T S NEWSLETTER OCTOBER 2013

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3A S S O C I AT I O N




A S OCTOBER BEGINS and the inevitable snow arrives, it is time to again thank all of you

for such a wonderful Parade of Homes last month. With over 2,500 attendees, it makes me proud to see so many members showcase the fine work we as an industry produces. Many thanks to our builders, volunteers and sponsors that make it happen.

Now it is time to get ready for Fall membership events. Next week we will be holding the Board of Directors elections. It is wonderful to know that members are stepping forward to help develop the course SWMBIA will take into the future. The home building industry has many ongoing challenges

P R E S I D E N T ’S L E T T E R UPDATE

ahead of us and I urge you to get involved! The more you participate, the more SWMBIA will be able to do as an organization. Together we produce community-wide events such as the Parade of Homes and the Home Expo, but we also are involved in public relations eff orts, government aff airs, Playhouses on Parade and much, much more.

Recently, the Board of Directors has endorsed Brett Potter and I-Ho Pomeroy for Bozeman City Commissioners. After interviewing candidates, we feel that Brett & I-Ho have the skills and understanding of the importance of housing on the local economy. Regardless of your voting preferences, I urge you to VOTE! While our government can’t agree, we as citizens should realize we have choices and do what we can to help our way of life continue. Not voting, well, it’s just not right. So please remember to cast your ballot.

As I wrap up my term as your Chairman of the Board, please feel free to let me know your suggestions for events and issues you may have. Not only are your creative ideas needed, together we are a stronger voice in our eff orts to protect our industry and quality of life here in southwest Montana.

Until next month,

Nathan Albrecht Pro Builders 2013 Chairman of the Board

NATHAN ALBRECHT PRO BUILDERS2013 CHAIRMAN OF THE BOARD

MONTHLY NEWSLETTER ADVERTISING

Full Page $951/2 Page $751/3 Page $651/4 Page $55Business Card $25

B&W Standard Call for Color PricingCall for Pricing (406) 585-8181

ADVERTISERS INDEX

Apex Group, Inc. 26

Big Sky R Control 8

First Interstate Bank 3

First Security Bank 14

First West Insurance 24

Knife River 19

Little Stinkers 12

Montana Climate Control 27

Northwestern Energy 24

Stockman Bank 15

TMC, Inc. Sand & Gravel 24

T & E Co. “The Cat Rental Store” 13



Statesman (500-1000)Tim Dean 504 Spikes

Royal Spike (150-249)John L. Miller 206 SpikesByron Anderson 195 SpikesDennis Cattin 182 SpikesClair W. Daines 173 SpikesEugene Graf IV 162 SpikesDavid Andreassi 157 SpikesJim Syth 154 Spikes

Red Spike (100-149)Anders Lewendal 142 SpikesGreg Vidmar 116 SpikesBill Fiedler 101 SpikesEric Roset 101 SpikesEugene Graf III 100 Spikes

Green Spike (50-99)Chuck Graden 95 SpikesJ.D. Engle 87 SpikesRichard Smith 87 SpikesBeth Zeman 85 SpikesDavid Graham 73 SpikesFrank Armknecht 63 SpikesGuy Graham 59 SpikesSteve Armknecht 56 SpikesNathan Albrecht 59 SpikesRob Evans 56 Spikes

Life Spike (25-49)Ken Vidar 49 SpikesRob Evans 48 SpikesJon Moullet 46 SpikesAdrian Vaughn 41 SpikesSally Hickey 40 SpikesRon Hinds 37 SpikesKeith Fraser 38 SpikesDean Derby 28 Spikes

Blue Spikes (6-24)Jeri Norris 8 SpikesErica Renslow 6 Spikes

NEW MEMBERS SEPTEMBER 2013

SPIKES CHAMPIONS OF THE NAHB

By recruiting, involving and retainingmembers, SPIKES strengthen and build both

our Association and the Industry!

Eric DeweyDesperado Forge LLC374 Kimball Ave, BBozeman, MT 59718(425) [email protected]

Mike HopeFerraro’s Fine Italian Restaurant726 North 7th Ave.Bozeman, MT 59715(406) [email protected]

Troy Watling CPA/ Sabrina WhiteJCCS (Junkermier, Clark, Campanella, Stevens PC)714 Stoneridge Dr. Ste 3ABozeman MT 59718(406) [email protected]

Bill MowenShadow Hearth & Home2304 N 7th Avenue Suite ABozeman, MT 59715-2571(406) [email protected]

Ronald SmithCenturyLink2707 West Main StreetBozeman, MT 59718(406) [email protected]

Ben NistlerNHB, LLCP.O. Box 11530Bozeman, MT 59719(406) [email protected] by Leif Sundeen

AFFILIATES: Debbie SauskojusFirst American Title Company924 Stoneridge Drive Suite 1Bozeman, MT 59718-7062(406) 570-2882dsauskojus@gofi rstam.comwww.gofi rstam.com

Jaime BaldwinKeller Williams Montana Realty1174 Stone Ridge Dr.Bozeman MT 59715(406) [email protected]

MEMBER BENEFIT FREE IBS PASS

If you have never attended the International Builders Show before NAHB will give you your fi rst expo pass for FREE! This years show promises to be the best one yet!! It takes place in Las Vegas Feb 4-6th 2014. The show featurs over 15 industry ‘Centrals’ specifi cally covering everything from 50+ housing and multifamily housing to mortgage and fi nancial services. To see a complete list of featured ‘Centrals’ visit www.buildersshow.com/centrals



EVENT RECAP BRIDGER BREWING - ASSOCIATE APPRECIATION EVENT

Join us for our next event at the Holiday Inn!

OCTOBER 9TH5:30 COCKTAILS + DINNER AT 6:45

RSVP req. Call 585-8181 $20pp



RENEWALS OCTOBER 2013

BUILDERS:

*Continental Construction

Graden Construction, Inc. Our clients will benefi t from our passion of craftsmanship shown in the details unique to Graden Construction, with our involvement in each step of the process and helping each client in the realiza-tion of their dream. (406) 388-4342

*Rotherham Construction, Inc.(406) 582-8223

ASSOCIATES:

Ard Concrete, Inc. With over 18 years experience in the Valley, we’ve done it all. We do all stages of concrete construction, specializing in decorative concrete. We are a Certifi ed Installer of all Elitecrete Systems, seamless fl oor-ing, overlays and epoxy coatings. (406) 580-8952.

*Big Sky Insulations, Inc.

Bozeman Public School District #7

D’Agostino Masonry Supply

Davis Business Machines, Inc.

Derby Agency

Distinctive Lighting

DP Doors & Millwork, Inc. (406) 388-1610

*First Security Bank

Great Western Insulation321 High K Street, Belgrade MT

*Moonlight Painting and Finishing, Inc.

Slabworks of Montana www.slabworksofmontana.com

Timberline Insulation Systems, Inc. PO Box 218, Gallatin Gateway, MT 59730 (406) 763-4790

AFFILIATES:

Leif Sundeen, Kenyon Noble Lumber & Hardware

Alana Edwards, Kenyon Noble Lumber & Hardware

*denotes Voluntary Issues Fund Contributors—Thank you!

THANK YOU PARADE SUPPORT CREWS!

Especially, Tina Altimus with Security Title Co. as Support Crew Chairman!

Deb Abarunley

Kristi Lee-Des Lauriers

Kenlynn Erickson

Deana Clement

Tiff any Stratman

Susie Gallagher

Val Abraham

Sara Swanson

Danielle Gregory

Brent Zanto

Nick Johnson

Leslie Dearhamer

Lee Vernon

Jeri Norris

Kathy Smith

Veronica Wing

Julie Eddins

Leslie Secor

Andrea Devers

Niki Morrison

Marsha Polansky

Cecilia Spoon

THANK YOU! PARADE MAJOR SPONSORS



C A L E N DA R OCTOBER 2013

1 Candidate Interviews at the SWMBIA Offi ce

8 Green Building Committee 3:30pm BCHO Offi ce

9 General Membership Dinner & Board Elections at the

Holiday Inn. RSVP req.

15 Home Expo Meeting11am SWMBIA Offi ce

16 Skid Steer Certifi cation Training. FREE GRIP Event.

Call Sean at MBIA to RSVP 442-4479

24 SWMBIA Hosting Business after Hours with the

Chamber and GAR. Event held at Stockman Bank 5:30-7:30pm

24 MBIA Banquet

25 MBIA Fall Board Meeting8am-Noon

29 Playhouse Committee MTG10am SWMBIA Offi ce

29 Executive Committee MTG 4pm SWMBIA Offi ce

Membership Committee is seeking new members! This committee facilitates the planning of our monthly General Membership Dinners and tries to recruit and retain new members.. Interested? Call the Offi ce 585-8181

Jim Christ • 406-388-4146



M E M B E R S P OT L I G H T OCTOBER 2013

FROG ROCK DESIGNResidential Architecture

Frog Rock Design is a Bozeman based Architecture Firm that specializes in home design and energy effi cient solutions for today’s building environment. We have been working closely with the local building community to create quality homes and have been a member of SWMBIA for the past 13 years. During that time we have collaborated with outstanding local Builders on seven Parade of Homes and are looking forward to future collaboration opportunities.

Frog Rock Design provides drawing and design services for remodels and additions, builder sets, full custom homes and multifamily housing projects. By partnering with local Builders and creating a team during the design process we can help provide solutions that work with the client’s budget and create unique and beautiful spaces. We have the experience and expertise to design within smaller subdivision lots and provide master planning and site integration for larger rural properties.

At Frog Rock Design we take energy effi cient building systems to heart. We have designed plans working with SIPS, ICF’s, staggered stud framing, advanced framing techniques, super insulated slabs and other hybrid systems based on Builder or client preference. We are NHAB Certifi ed Green Professionals and have designed homes to meet Energy Star standards. Whether you want a full passive home design, Green Certifi cation or a house that meets basic energy effi ciency standards we can help you to navigate your project.

Frog Rock Design’s Georgetown Lake Project was recently a featured home pub-lished in Timber Home Living Magazine. Way to go!

10 E D U C AT I O N


As you know, OSHA mandates that workers are trained to operate any equipment that they are expected to use in the workplace under the federal “general duty clause”. We fi nd that skid steer operators often have no formal training on safe operation of these machines. Each year, several skid steer operators are killed on the job and many more are injured. These machines pose great risk of serious or life threatening injury when misused.

Operators need to be trained and competent in navigating rough or steep terrain, identifying faulty equipment, assessing ground conditions and scheduling machine maintenance at pre-determined intervals. When was the last time your skid steer had a pre use inspection? Do you have documentation of pre-use inspections. Conducting and recording a pre use inspection is a necessity to allow the operator to be aware of any problems with the machine. Fastening the seat belt, alerting others and checking operating features are all part of the pre use procedure.

In the October GRIP training sessions around the state, we will be reviewing everything you thought you knew about the Skid Steer and more. Training sessions will be conducted in the following towns at no charge. Certifi cations will be issued.

Please contact us at (406)442-4479 to RSVP so we can have adequate text books and refreshments.

Bozeman at the Grantree Inn Wednesday, October 16, 7:30am – 10:30am

Sean Lawler MBIA Grip Safety Director

Skid Steer Certifi cation Course FREE Oct. 16RSVP at 406-442-4479”

G R I PS A F E T Y MBIA

Mike RocchioMBIA Grip Safety Supervisor

11E D U C AT I O N


G R E E N D E V E LO P M E N TI N C E N T I V E S NAHB E v e r y o n e r e s p o n d s b e t t e r t o encouragement rather than ultimatums, and developers are no diff erent. For this reason, incentives typically produce a better response and result than mandates. In addition, regulations and mandates are typically protective, not progressive, more focused on “thou shalt not” instead of fostering new approaches and allowing the flexibility to respond to unique conditions locally and on a specifi c site. Incentives are more likely to spur creative solutions. In addition, green building and development are about managing the interface between humans and the land, not simply restoring as much as possible when the face of the land is changed. They are about conservation, not simply preservation. Managing and optimizing resources by its very nature requires creativity, fl exibility, and innovation, not a one-size-fits-all approach that is not adaptable to local conditions or over time. With that in mind, there are various types of incentives communities can and should off er to encourage green development. These fall into the broad categories of reduced impact fees, reduced or waived development standards, density bonuses, and expedited permitting.

REDUCED IMPACT FEES Impact fees are typically calculated based on particular assumptions about per capita or household water and sewer consumption. Yet green homes that use more water efficient plumbing and irrigation fi xtures or systems will place less of a burden on a community’s water and sewer supply systems. Thus, communities should reduce impact fees for green developments and base their fees on real numbers for those developments rather than average per capita assumptions. Green development site layouts may also result in reduced width streets as well as fewer lineal

miles of streets, which reduces both initial pavement costs as well as maintenance costs over time. Road impact fees as well as maintenance cost provisions in the performance improvement guarantees communities impose on developers could be adjusted accordingly. Some communities also impose stormwater management fees. Yet through a variety of means, including provision of more trees and vegetation and pervious area; the use of natural stormwater management approaches; and reduced street widths as well as lineal feet of roads, for example, green developments are likely to produce far less run-off than a conventional development. Again, this should be the basis of negotiations with a community for a reduced fee structure.

REDUCED OR WAIVED DEV.STANDARDS The many regulations affecting how development occurs can also work against each other from a green development perspective, so communities should also be encouraged to take a fresh look at these potential confl icts as a means of encouraging green development. NAHB’s publication, Building Greener Neighborhoods: Trees as Part of the Plan (out of print but available as a downloadable pdf from Builder Books), describes some of these trade-offs in greater detail, but a few key examples include large building pad setback, excessive maximum grade, and excessive street pavement and right-of-way width requirements that essentially force developers to disturb and clear more of a site than necessary. This not only increases soil erosion through disruption of natural slope but results in loss of vegetation as well. Many communities inadvertently cause tree loss through such standards and then impose a tree replacement standard on the developer as well, which

is both ineffi cient as well as costly and produces a less green site in the end. Allowing tighter building pad setbacks, steeper natural grades, reduced street right-of-way and pavement width, open section (curb-less) roadways and drainage swales, cluster development by right, and alternate utlity installation arrangements (front versus back, alternating sideyards, comon trenching, etc.) are some of the many ways communities can offer incentives through their standards.

DENSITY BONUSES

Land costs are a large component of the cost of a fi nished home in most markets today, so anything that helps bring down the land cost is a powerful incentive for developers that also benefi ts homebuyers as well as the community at large. Density bonuses are not new and have been widely used by local governments to spur developers to accomplish a variety of public benefi ts and objectives. They can also be used in conjunction with cluster development to foster provision of more open space or in conjunction with transit oriented development overlay zones to build the density necessary to support bus and rail transit options.

EXPEDITED PERMITTING There are also costs associated with the increasingly complex, lengthy, and uncertain development approval process in place in most communities today. These costs can aff ect the very viability of a development if they go on too long and climb too high, so any improvements here are also very meaningful for developers. There is a wide body of literature available to communities on options for streamlining and expediting approvals, including an NAHB Smart Codes/Smart Process checklist.

12 E D U C AT I O N


The Low Income Housing Tax Credit (LIHTC) was created as part of the Tax Reform Act of 1986 as a more eff ective mechanism for producing aff ordable housing.

Nearly half of the nation’s renters are rent burdened and need aff ordable options. According to the 2011 Harvard study, “America’s Rental Housing: Meeting Challenges, Building on Opportunities,” construction costs would have to be 28% of the current average to serve renter households earning the minimum wage. This is not possible without the LIHTC or other government programs.

The LIHTC is a job creator, generating approximately $7.1 billion in economic income and approximately 95,000 jobs per year across all U.S. industries.

WHAT IS THE LOW INCOME HOUSING TAX CREDIT (LIHTC)? • The LIHTC is the most successful

aff ordable rental housing production program in U.S. history.

• Through construction of new apartments, preservation of existing aff ordable housing, and rehabilitation of older multifamily buildings, the LIHTC adds to the nation’s supply of aff ordable housing.

• Since its inception, the program has produced and financed more than

two million aff ordable apartments.

• The LIHTC serves households earning 60% or less of the area median income with rents restricted to keep the units aff ordable.

HOW DOES THE LIHTC WORK? • The LIHTC is a public/private

partnership bringing together the federal government, state allocating agencies and the private sector.

• Developers receive an allocation of LIHTCs from the allocating agency through a competitive application process designed by the allocating agency to meet local housing needs.

• The tax credits are then sold to private investors to raise equity for an LIHTC project. The investors are part owners of the project, usually as limited partners. LIHTC syndicators typically bring the developer and investors together.

• The federal tax credit allows private equity to be raised at lower cost, in turn allowing rental projects to be developed, built, and operated successfully with below-market rents that serve lower-income families.

• LIHTC properties must remain aff ordable for a minimum of 30 years.

The state allocating agency, syndicator, investor and developer monitor project compliance, resulting in a low foreclosure rate of less than 0.1%, as reported by a recent study from Novogradac & Company LLP.

Most administrative costs associated are thus borne by state allocating agencies, rather than the federal government.

THE LIHTC HAS A POSITIVE IMPACT ON THE U.S. AND LOCAL COMMUNITIES • Using 2009 data from the National

Council of State Housing Agencies Fact Book and its national impact of home building model, the National Association of Home Builders (NAHB) estimates that, annually, the LIHTC:

• Created approximately 95,000 new full-time jobs and added $7.1 billion in income to the U.S. economy.

• Generated approximately $2.8 billion in federal, state and local taxes.

• These impacts are broad-based and include jobs, income, and taxes in industries such as manufacturing trade, and services, in addition to construction. The jobs are measured in full-time equivalents — that is, enough work to keep a worker employed full time for a year. Income includes business profi ts as well as

LO W I N CO M E H O U S I N G TAX C R E D I T NAHB

The most successful aff ordable rental hosuing production program in our nations history”

13E D U C AT I O N


wages and salaries paid to workers.

An NAHB study based on these considerations estimates that the fi rst-year economic impacts of building 100 apartments in a typical LIHTC development include:

o $8.7 million in income (wages for local workers and profits for proprietors, small businesses, and corporations),

o $3.3 million in taxes for federal, state and local governments

o 116 jobs, about half of which are in the construction sector

• At the local level, an LIHTC project directly impacts the community in which it is built. The community does not usually experience the employment and income impacts generated in industries such as manufacturing, because markets for most manufactured products are at least regional in scope.

• However, an LIHTC community will realize additional benefits when a share of the local income earned during construction is spent and recycled in the local economy.

CONTINUING NEED FOR AFFORDABLE RENTAL HOUSING PRODUCTION • According to 2010 American

Community Survey data, over 19 million households, or 49% of total renters

• are rent burdened, paying more than 30% of their household income toward rent.

• In recent years, the LIHTC has produced approximately 75,000 new apartments annually, which is not

• suffi cient to replace the number of aff ordable apartments lost each year to obsolescence, conversions to other uses and demolitions.

• The latest rental dynamics study produced by the U. S. Department

of Housing and Urban Development shows that between 6 million and 7 million existing affordable housing units were lost through conversions (from rental to owner) and fi ltering (rents increasing relative to incomes) over a two-year period, which was roughly off set by a similar number of existing units becoming aff ordable through conversion and fi ltering in the opposite direction.

• According to the 2011 Harvard study, more than 28% of the 1999 low-cost stock was lost by 2009.

• These numbers are large relative to the amount of rental housing that can be produced even with maximum eff ort in a given year.

• To develop new affordable apartments without assistance from the LIHTC or other housing programs, the Harvard study also reports that the construction cost would have to be 28% of the current average (which is already 30% below the 2007 peak in real terms).

14 E D U C AT I O N


Today we have successfully prevented fi re sprinklers from being required in one and two family homes for at least the next 3 years.In fact we were successful in nearly every single one of our proposed code amendments. We have a few details below. We will have more information available in the coming week. Enjoy the weekend knowing that when it comes to protecting housing aff ordabilty, we have your back.

HIGHLIGHTED MBIA REQUESTED AMENDMENTS:SUCCESS Removal of fi re sprinklers from the code ($15,000)SUCCESS Removal of an additional R-5 exterior rigid insulation ($2,300)SUCCESS Addition of provisions that allow builders/ subcontractors to conduct their own blower door tests ($200)SUCCESS Removal of R-3 hot water piping insulation ($450)SUCCESS Continued allowance of building cavities as ducts ($600)SUCCESS Elimination of a provision that would require crawl spaces and unfi nished basement ceilings to be sheet rocked ($1,130)SUCCESS - Blower door test will be delayed. Delayed implementation of the new energy code until October 2014.

MBIA Defeats Mandatory Fire SprinklersOver $20,000 in new code changes prevented

M B I A G O V. U P DAT E WEBINAR - NAHB CHEIF ECONOMIST

15E D U C AT I O N


W E B I N A R S NAHB - CONTINUING ED CREDITS

Designing Units and Amenities for Todays Multifamily

Community

Designing the right mix of unit layouts and amenities can make or break a multifamily community. Find out from leading design professionals what’s working in today’s market. Is there still a demand for smaller units or are family units making a comeback? Can the smallest urban units work for both Gen Yers and Boomers? What unique amenities will set you apart from the competition – and is one of them adjacent retail? These questions and many more will be answered during this one-hour webinar.

Wednesday, October 16, 2-3 p.m. ETDesign and Technology series

OSHA’S HAZCOM 2012: What You Need to Know

Exposure to hazardous chemicals in products such as paints, solvents and adhesives is a serious threat facing residential construction workers today. OSHA’s recently revised Hazard Communication Standard (HAZCOM) is

Presented by NAHB Labor, Safety and Heath

Wednesday, October 23, 2-3 p.m. ETHousing Policy and Finance series

Design Trends & Color Forecast

With a nod to fashion, science, nature, pop culture and global traditions, this 60-minute webinar will explore color and design trends infl uenced by global, technological, historic, psychological and economic factors.

In 2014, color trends will reflect the world around us: from rich, luminous and luxurious to mysterious, elemental and earthy. Speaker Rebecca Spak, Sherwin-Williams director of color marketing and design services, will guide participants through transforming spaces using fresh colors and unique combinations while showcasing the company’s colormix 2014 palettes.

Presented by NAHB Design Committee

Wednesday, October 30, 2-3 p.m. ETDesign and Technology series

ALL WEBINAR S ARE AVAILABLE FOR PLAYBACK AT

WWW.NAHB.ORG

Presented NAHB Multifamily Council

now aligned with the Globally Harmonized System of Classifi cation and Labeling of Chemicals (GHS), to provide a common and consistent approach to classifying chemicals and communicating hazard information on labels and safety data

VICTORY IN WATER WELLS BATTLE

New Rule Delayed At LeastSix Months

Good News! The MBIA has successfully at delaying the implementation of the new water well restrictions for at least six months. During this time we will continue our eff orts to prevent adoption of the rule by any means necessary.

The rule, proposed by DNRC, would severely limit new subdivisions using individual water wells. Delaying and defeating this rule has been our top priority this year as over 80% of new lots depend upon individual water wells.

We will keep you posted on future developments.

QuestionIs it worth it to get an energy efficient mortgage and how do I start?

AnswerYES! Ask your banker.To learn why it is worth it visitwww.constructiongarden.org

16 E D U C AT I O N


Energy Boot Camp for Builders

Bozeman, December 3-4 Best Western Gran Tree Inn 1325 N 7th Ave, Bozeman (8:00 AM to 5:00 PM each day)

Why attend this two-day training?

1. Learn about the latest changes to the Montana Energy Code. 2. Learn how building science continues to shape the energy code and above code energy standards such as

ENERGY STAR. 3. Learn about software tools that can make it easier to meet energy code requirements. 4. Use building tightness and duct tightness testing equipment. 5. Become blower door and duct tightness testing certified.

The Energy Boot Camp for Builders is an intense two-day training to help builders understand how design and construction techniques can make a home more energy efficient. The training will look at how recent trends in building science have shaped the energy code as well as the above code energy programs such as ENERGY STAR. Montana is expected to adopt the 2012 International Energy Conservation Code as the state energy code this fall with implementation to follow some time in 2014. This training will help builders prepare for the changes in the new energy code.

Registration Fees

$600 - Basic Registration

$300 - Builder working in the NorthWestern Energy service territory

$250 - Builder working in NorthWestern Energy service territory who is also a local Home Builder Association Member

No Charge - Local code officials may attend at no cost if within NorthWestern Energy service area

To Register: Go to the NCAT website at https://www.ncat.org/events/.

For more information about the training contact Dale Horton ([email protected]), (406) 494-8653.

17E D U C AT I O N


I M P O R TA N T N OT I C E TO A L L E M P LOY E R S REGARDING THE NEW HEALTH CARE LAW

A LL EMPLOYERS, REGARDLESS OF SIZE, SHOULD PROVIDE THEIR EMPLOYEES WITH A NOTICE OF HEALTH INSURANCE COVERAGE OPTIONS.

While Employer Shared Responsibility provisions of the Aff ordable Care Act were postponed by the Obama Administration until 2015, NAHB members should know that the mandate for individuals and their dependents will still go into eff ect as planned on Jan. 1, 2014.

This rule mandates that all individuals and their dependents must either have health care coverage, qualify as exempt, or pay a penalty. In preparation for this mandate, the state and federal health insurance marketplaces created under the Aff ordable Care Act will offi cially open on Oct. 1 to allow individuals and businesses to shop for health insurance plans.

To help employees with their insurance selection decisions, the Department of Labor (DOL) is asking all employers, regardless of size, to furnish each employee with a written notice of health insurance options by Oct. 1 to coincide with. Employees hired after Oct. 1 should be provided with the notice within 14 days of their hire. Model notices can be downloaded and printed below:

There is no penalty for a failure to provide this notice.

Small businesses with less than 50 employees do not have to provide health insurance, and businesses with more than 50 employees now have until 2015 to provide coverage or face penalties. But to reaffi rm, ALL businesses, regardless of size, are asked to furnish the written notice of health insurance options.

M A S T E R CG P CO U R S E CONTINUING EDUCATION FOR CURRENT CGP’S NOV 6-8

F OR THOSE OF you who have taken the CGP course this is a great opportunity for continuing education credits

needed to maintain your designation. SWMBIA will be off ering this course Nov 6th-8th. If you are not a Certifed Green Professional you should still consider this worthwhile class.

The CGP Course covers the National Green Building Standard which is used to achieve an Energy Star Rated Home. The CGP also includes a business portion where students

learn how to best market their new designatin for a maximum return on investment.

The Masters Course builds upon what is learned in the CGP but on a more advanced level. Students of this course will learn advanced green building strategies and concepts as well as sustainable project management skills.

Earning designations, such as the CGP or the Master CGP, is a great way to set yourself apart from the competition. The courses help you know what you are talking about and give you

credibility in the eyes of the consumer.

More and more often customers are wanting to ‘go with green’ when given the option, and are continually seeking out industry specialists. If a customer is forced to choose between you and a competitor this could be the tipping point between closing the sale.

Do yourself a favor and make this small investment in your future. You won’t regret it!

18 E C O N O M I C S


T HANKS TO THE rise of outsourcing and the Great Recession, labor costs have, for some time, barely

risen. And while this has caused great pain to workers, it has been a boon to business. To give you an idea of how anemic wage growth has been recently, keep in mind that real compensation per hour rose at an average annual infl ation-adjusted rate of 1.6% since record keeping began in 1947. Since 2000, it has averaged slightly less than one percent per year (0.95%), and since the start of the great recession in January 2008, it has averaged a trivial one-seventh-of-one-percent. I now think we are entering a period of more rapid wage growth. This will impact corporate spending on technology, corporate profi ts and GDP growth.

Due to small wage increases, firms have largely reduced their purchases of technology equipment and software. After

ELLIOT EISENBERG, PhD.,GRAPHS AND LAUGHS, LLC

all, a major reason fi rms buy computers and software is to reduce the amount spent on salaries. But with salaries largely stagnant, why buy labor-saving technology? As a result, business spending as a share of GDP has fallen by about 20% since the onset of the recession, and annual increases in corporate spending on technology equipment and software are now lower than they have been in fi fty years. While you might think this is because computers continually get cheaper, they have been getting cheaper since they were first built. The key diff erence this time is that the combination of reduced spending on salaries and technology has boosted corporate profi ts, despite weak top line sales gains. This golden era of corporate profi t is now nearing an end for several reasons.

First, because of limited investment in technology, productivity gains, or increases in output per worker per hour, have steadily declined over the last several years to the point where they are now zero. Second, steady job gains have been slowly chipping away at the unemployment rate. And while much of the reduction has been due to declines in the labor force participation rate, some of that is due to baby-boomers retirements, something which will continue for another decade. Third, outsourcing work to, for example, China no longer packs the profi t punch it once did because wages there are rising rapidly, by 14% last year, and 12.3% in 2011.

As a result, US fi rms will soon be forced to pay higher wages and thus will invest in technology to meet rising consumer demand for goods and services and lessen the impact of higher wages. While this

will reduce corporate profi ts and act as a headwind for stock prices, it will also help the economy tremendously. Here’s why:

Consumer spending is the biggest driver of the U.S. economy, accounting for 69% of GDP. Since the year 2000, wages as a percent of GDP have fallen from 46% to 42.5%. A reversal of this trend, even if small, would boost spending on durable goods, restaurant meals, clothing and more. And we need additional spending, because even though house prices and the stock market are up, many workers own neither. The only way to increase their spending is for their paychecks to grow.

Finally, to get out of a recession it is necessary for all cyclical sectors including housing, automobiles, non-residential private construction, and corporate purchases of equipment and software to increase in unison. While all cyclicals aside from corporate purchases are now contributing to GDP growth, bringing corporate purchases in from the cold would significantly strengthen the recovery and boost GDP.

H O U S I N GE CO N O M I C S HIGHER WAGES, SPENDING AND GDP

19E C O N O M I C S


H O U S I N GS TA R T S BOZEMAN BUILDING DIVISION

WWW.BOZEMAN.NET



P R O P O S E D C H A N G E S TO T H E I R C MBIA

FIRE SPRINKLERSThe 2012 residential code mandates that all single family homes have an NFPA13 fi re sprinkler system installed. (MBIA plans to oppose) Fire Resistant Construction 501.3 requires that a layer of gypsum board be applied to the underside of light weight fl oor joists in basements and crawlspaces that have storage or a fi re fuel appliance. (MBIA plans to oppose) Fire separation Distance: See table 1. (MBIA plans to oppose)

GARAGED DOOR “OPENING PROTECTION”:

The 2012 IRC adds a requirement for “self closing devices” on doors connecting an attached garage to dwelling unit. (MBIA plans to oppose)

STAIR GEOMETRY:Both the 2012 and 2009 IRC change the stair geometry– max riser height shall be 7 ¾ inches and the minimum tread depth shall be 10 inches. The 2006 IRC allows stairs to be 8 ¼” x 9” (MBIA plans to oppose)

WINDOW SILL HEIGHT:Window opening limiting devices are required under the 2012 IRC for windows that are over 72 inches above the fi nished grade or surface below and the lowest part of the clear opening of the window is less than 24 inches above the fi nished fl oor. In previous versions of the code, window fall protection was left to the judgment of the local code offi cial and builder (Amendment to be discussed on call)

CARBON MONOXIDE DETECTORS:Carbon monoxide detectors are required under the 2012 code. A detector shall be installed outside of each separate sleeping area in the immediate vicinity

of the bedrooms in dwelling units with fuel-fi red appliances or attached garages. (Amendment to be discussed on call)

GUARDRAILS:The requirement for when guardrails are required has changed with the 2009 code. The sentence “at any point within 36 inches (914 mm) horizontally to the edge of the open side” The eff ect of this change is that a guardrail will be required where the elevation diff erence is greater than 30 inches from the walking surface to a horizontal point 36 inches adjacent to the leading edge of the walking requirements and the anchor bolt spacing tables thatrequire bolts be spaced as close as 5” on center.

GARAGE SEPARATIONBuilders are now permitted to use materials other than drywall to separate the garage from the remainder of the house. (No amendment is planned)

GYPSUM BOARD SHEATHINGNew gypsum board fastener requirement: 7” spacing at both the edges and intermediate supports (when used as structuralsheathing) Permits the use of screws in lieu of nails at the same fastening

pattern. (No amendment is planned)HEADROOM AT RAILING

Areas above the handrail do not need to maintain the minimum of 6’8” headroom clearance. (No amendment is planned)

GRAY/RECLAIMED WATER In a building where a nonpotable water-distribution system is installed, the nonpotable system shall be identifi ed by color marking, metal tags or other appropriate method. (No amendment is planned)

RAMPS Allows general purpose ramps to slope a max of 1 unit vertical in 8 units vertical. (exception for ADA designed ramps) (No amendment is planned) Structural Insulated Panels – requirements for SIPshave been included in the code. (No amendment is planned)

WALL BRACING SUMMARY:– The wall bracing provisions have beencompletely reorganized for better fl ow, usability, and clarity.– Rules for combining intermittent andcontinuously sheathed walls in a dwelling, or bracing methods within a wall line, are clarifi ed.– New or improved details for corner returns, tiedowns, off sets, masonry pier support, and angled walls are added.– New tables are provided to simplifyadjustments for varying bracing conditions.– Separate tables for wind loads and seismic loads.– Entire dwelling need not be fully sheathed with WSP when using continuous sheathing method.– Simplifi ed narrow wall bracing option for garage doors for dwellings in low seismic regions.– APA portal frame can be used

21E C O N O M I C S


Exterior WWall ElementMinimum Fire Resistance

RatingMinimum Fire Separation

Distance

Walls(fire resistance rated)

1-hour-tested in accordance with ASTM E 119 or UL 263 with exposure to both sides <5 Feet

(not fire resistance rated) 0-hours >5 feet

(fire resistance rated) 1-hour on the underside >2 feet <5 feetProjections (not fire resistance

rated) 0-hours 5 feetNot allowed N/A <3 feet

Openings 25% max of wall area 0 hours 3 feetLimited 0-hours 5 feet

Penetrations AllComply with Section

R302.4 <5 feetNone Required 5 feet

anywhere in a dwelling.– Requires a continuous load path (vertical uplift straps) at braced wall panels for many houses, even in low wind regions.– Increases wall bracing requirements will increase for houses in higher wind regions and for large (3 story or open plan) houses.– Requires blocking between roof framing members at braced wall panels supporting deep truss members or roof joists (greater than 10” nominal),– Requires blocking between roof framing members at braced wall panels in high-wind and high-seismic areas. (Amendment to be discussed on call)

WATER RESISTANT BARRIERSNow requires a water-resistant barrier to be provided behind stone and masonry veneer regardless of whether an air space is provided or the size of the air space. (No amendment is planned)Wind Design Criteria The new ICC-600 standard for residential constructionin high wind regions is referenced, replacing the outdated SSTD-10. (No amendment is planned) Hail Damage Map - Deleted (No amendment is planned)

PROPOSED ENERGY CODE CHANGESThe MBIA plans on opposing the adoption of the 2012 Energy Code.Overview Complied by the Montana

Department of Environmental Quality.R-25 wall above ground walls

ABOVE GROUND WOOD FRAME WALLSR-20 cavity with R-5 continuous (layer of 1 inch foam) Current code path requires R-21. Note that using REScheck (2012 IECC) qualifi es normal houses with R-21 walls - without the R-5

REQUIRED BLOWER DOOR TESTING of all houses, must test at 3 air changes per hour at 50 Pascal pressure or less (3ACH50). Current code has blower door testing as an option to a visual inspection; if using the test option the Montana 2009 IECC requirement is 4 ACH50 or less. Insulated corners and headers are required.

INCREASED AIR SEALINGAir sealing required at sill-plate and top plate of exterior walls added to the list of air sealing requirements. Hot water pipe insulation to at least R-3: piping larger

than ¾ inch, water heater to kitchen, water heater to distribution manifold, under a slab fl oor, recirculation systems, if exceeds maximum run length: 3/8 for 30 feet, ½ inch for 20 feet, ¾ for 10 feet 75% of permanent light fi xtures must have high effi ciency lamps (CFLs or LEDs) Currently code requires 50% Tighter ducts testing requirements. The requirements of 2009 IECC for testing if furnace or ducts are located outside conditioned space have been made more stringent. Mechanical ventilation required: 2012 IECC references the IRC and IMC ventilation specs The whole house mechanical ventilation system shall provide outdoor air at a continuous exchange rate or follow ventilation rate factors. IMC / IRC tables Example: 1,500 to 3,000 sq. ft. - 2-3 bedroom house - requires 60 cubic feet per minute (CFM) continuous air fl ow , If fan runs ½ time air fl ow must ne 120 CFM. Could be the bath fan. Bathroom or utility room fan rated 10 to 90 cfm requires minimum effi cacy of 1.4 cfm/watt. Over 90 cfm minimum effi cacy of 2.8 cfm/watt. Building framing cavities cannot be used as ducts or plenums. Appears panning off fl oor joist cavities as return ducts will not be allowed.



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23E C O N O M I C S


M I L L L E V E Y E L E C T I O N GALLATIN COLLEGE ANNOUNCEMENT

O N NOVEMBER 5, 2013, Gallatin County residents will have the opportunity to vote on

a mill levy ballot concerning Gallatin College. For SWMBIA members who are not familiar, Gallatin College is Gallatin County’s local Community College and was started in 2005. With nine academic and workforce related one and two-year programs, Gallatin College is growing quickly. It is well documented that education attainment directly relates to income and quality of life. For employers, Gallatin College is preparing a more trained and professional workforce trained in bookkeeping, business, and professional communications. For the building industry in particular, Gallatin College offers several building related programs such as Interior Design, Design Drafting, Welding Technology and Residential Building Performance. More than 20 other programs in healthcare, business, hospitality, technology, and manufacturing are planned but will require additional support from voters and residents of the Gallatin Valley. The success of the mill levy vote will help to insure that Gallatin College continues to graduate qualifi ed graduates for our local business and industry.

WHY IS THE REQUEST BEING MADE?1. The funding would support the enrollment and program growth plans of the college and meet the needs of Gallatin County students and local employers.

2. The funding supports the development of the skilled local workforce that is integral to our county’s economic development.

3. The addition of the local funding to the state funding and student tuition that the college already receives will help keep the cost aff ordable.

4. The proposed mill levy would establish local funding support for two-year education in Gallatin County and meet the Montana Board of Regents’ requirement for an equitable local mill levy.

5. Gallatin is the only Montana County with an established Comprehensive Two-Year College that doesn’t levy at least 1.5 mills for local two-year education. HOW WILL THE FUNDING BE USED?1. The county funding will be used to create additional workforce related one and two-year programs.

2. Programs that are being planned include: Small Business Management, Advanced Manufacturing and Machining, IT Support Technician, Culinary Arts and more than 20 other programs in healthcare, business, hospitality, technology and manufacturing industries.

3. These programs can require a signifi cant investment in machinery and equipment, software, specialized facilities and program development work.

4. The funding will allow the college to serve hundreds of more students and create local employment opportunities for students.

HOW MUCH WILL IT COST?1. The annual amount raised by the county-wide 1.5 mills is projected to be $369,856.

2. Impact on property owners is $2.08 annually for a $100,000 in assessed property value or $4.15 annually for $200,000 in assessed property value. (Assessed property value is generally less than market price.)

24 C L A S S I F I E D


A member of the QBE Insurance Group

Auto Home FarmBusiness Work Comp Contractors

Dean A. Derby, CIC, Agent

1925 N. 22nd. Ave., Suite 101Bozeman, MT 59718Email: [email protected]

Office (406) 556-0893Cellular (406) 580-0893

Fax (406) 556-0896

Safety starts when you call 811 to locate all utility service lines two working

days before you excavate.

LIST YOUR BUSINESS CARDFor $25/Month

SWMBIA Helping Members Connect with

Members

Call 585-8181

25C L A S S I F I E D


RESOURCES TO MAKE YOURBUSINESS GROW

WWW.STOCKMANBANK.COM© 2011 Stockman Bank

MOTION PASSES: The SWMBIA Board of Directors has instituted a dues increase to $695/yr which includes 4 membership meeting/dinner passes. This is because NAHB and MBIA have increased their dues. If you have any questions, please contact SWMBIA or your SWMBIA Board of Directors.

Eff ective January 1st 2014

DUES INCREASE ANNOUNCEMENT

26 C L A S S I F I E D


BOARD OF DIRECTORS 2013

Chairperson/President Nathan AlbrechtFirst Vice President Brian PopielSecond Vice President Allan HathawayAssociate Vice President Bill FiedlerTreasurer Tylene VittImmediate Past Chairman Rob EvansASSOCIATE BOARD MEMBERS2-Year Term 2014 Darryl Seymour 2-Year Term 2014 Mike Thompson2-Year Term 2013 Jeri Norris2-Year Term 2013 Beth ZemanBUILDER BOARD MEMBERS2-Year Term 2014 Allan Hathaway2-Year Term 2014 Jake Lewendal2-Year Term 2014 Tim Rote2-Year Term 2013 Mike Stewart2-Year Term 2013 (2 Open)LIFE DIRECTOR MEMBERSGene Graf, Clair W. Daines, Tim Dean, Jim Syth, Frank Armknecht, Richard Smith

NATIONAL DIRECTORS 2013

SENIOR LIFE DIRECTORClair DainesLIFE DIRECTORSTim Dean, Jim Syth, Frank Armknecht, Gene Graf III, Richard Smith

COMMITTEE CHAIRS 2013

Golf Tournament Committee Chair Jake LewendalGreen Building Committee Chair Anders LewendalHome Show Committee Chair Beth ZemanPlayhouses on Parade Committee Chair Crystal WardenPublic Relations Committee Chair Darryl SeymourMembership Committee Chair Leif SundeenGoverment Affairs Committee Chair Brian PopielGoverment affairs C.I.T.F Clair DainesParade of Homes Committee Chair Darryl Seymour

EXECUTIVE COMMITTEE 2013

Chairperson/President Nathan AlbrechtFirst Vice President Brian PopielSecond Vice President Allan HathawayAssociate Vice President Bill FiedlerTreasurer Tylene VittImmediate Past President Rob Evans

ADVERTISERS INDEXApex Group, Inc. 26Big Sky R Control 8First Interstate Bank 3First Security Bank 14First West Insurance 24Knife River 19Little Stinkers 12Montana Climate Control 27Northwestern Energy 24Stockman Bank 15TMC, Inc. Sand & Gravel 24Tractor & Equipment Co. “The Cat Rental Store” 11Valley Glass & Windows 13

40,000 New Customers

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35% Increase in sales

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27C L A S S I F I E D


THANK YOU PARADE BUILDERS!2013

Winner of the peoples choice was Jody Marler with Fishcamp Custom with their home in Livingston!

Alpenglow Custom BuildersAnders Lewendal Construction, Inc.Bridger Peak Construction, LLCConstructive Solutions, Inc.Ebbigghausen Construction Inc.

Fishcamp CustomHeritage BuildersKeith Fraser Construction, Inc.McIntosh Construction Inc.Norton Ranch Homes

Pro BuildersVon ConstructionYesHaus!

Join us for our next event

at the Holiday Inn!

OCTOBER 9TH5:30 COCKTAILS + DINNER AT 6:45

RSVP req. Call 585-8181 $20pp

PRSRT-STDU.S. POSTAGE

PAIDBOZEMAN MT

59715Permit # 9

Southwest Montana Building Industry Association1716 W. Main St. Ste 8-GBozeman, MT 59715www.swmbia.org

Change Service Requested

oct 2013 swmbia newsletter

Documents

e t t e r update

e t t e r o c t o b

n t e n t s newsletter

n e w s

assoc iat ions w

building industry economics

home building industry

relevant industry issues