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NEWS
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Now Is the Time to Support Housing
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Please join the Indiana Builders Association for the annual Bill Carson Memorial Golf Outing on September 26th at Juday Creek Golf Course in Granger. The outing honors long-time Executive Officer, Bill Carson, and proceeds primarily benefit NAHB BUILD-PAC, the political action arm of the national association. The issues we face are not small and they call for action on our part. The mortgage interest deduction among other issues will directly impact the housing recovery. We need members of Congress who understand the importance of the housing industry. Your participation at the outing will help our national folks as they network with pro-housing candidates and officials in Congress. Registration begins at noon followed by a shotgun start at 1:00 p.m. Dinner and awards will follow. Special thanks to Mike and Linda Rogers for donating the golf course for the event and to major sponsor Marvin Windows and Doors. To register, complete and return the registration form. For more information, please contact Heather Sturgeon at (800) 377-6334 ext. 207. |
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Indiana Career Council to Hold Second Meeting Monday, August 19th
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The Indiana Career Council will be holding its second meeting on Monday, August 19th to continue discussions aimed at finding ways to address the “skills gap” in Indiana. In its most general form, the skills gap refers to situations where an employer has a job opening but can’t find a person with the particular qualifications (i.e., specific training and/or education) needed to fill it. For the most part these are jobs that require more training and education than a standard high school diploma would confer, but oftentimes less than that needed to receive a bachelor’s or an associate’s degree. And this is a problem that home builders and remodelers are increasingly confronted with. Earlier this year the National Association of Home Builders (NAHB) released the results of a poll it conducted of NAHB members showing that home builders and remodelers are increasingly finding it difficult to find qualified labor. The survey found that more than half of the builders surveyed reported that labor shortages over the past six months have caused them to pay higher wages on subcontractor bids to secure projects, and consequently, to raise home prices. Moreover, 46% of the builders surveyed experienced delays in completing projects on time, 15% had to turn down some projects and 9% lost or cancelled sales as a result of recent labor shortages. NAHB determined that the labor shortage is at least partly due to the fact that many skilled workers were forced to seek employment opportunities outside of our industry and, as a result, are no longer available. At the start of the recession the home building industry started losing tens of thousands of housing jobs annually. That number ballooned to more than 1.4 million during the peak of the downturn. During this period many workers chose to pursue training in another field or trade. And now that the home building industry is picking up steam, they are not returning to the residential construction sector. IBA submitted a summary of NAHB’s survey results to the Career Council last week and we are looking forward to working with the Governor and all members of the Career Council as they begin to look for ways to address this very important issue. |
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Residential Mortgage Rates Fall
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The average rate for 30-year mortgages fell from 4.59 percent to 4.56 percent for the week ended August 7th. The rate for 15-year mortgages fell from 3.65 percent to 3.62 percent. |
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LEGISLATIVE
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Summer Study Committees are Underway
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We are now entering the time of year when elected state leaders and policy junkies alike begin migrating back to the statehouse for interim study committee meetings. Following is a list of some of the more notable topics that likely will be addressed this summer.
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The Interim Study Committee on Economic Development has been assigned to study topics including: (1) suppliers discriminating against consumers based on the price of promotion of goods to retailers by refusing to sell to a retailer a good at the same price that the supplier sells the good to any other retailer; (2) regulation of residential leases by political subdivisions; and (3) trespassing for the purpose of harming a business, and making video images of a business with the intent to falsely portray the operations of a business.
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The Interim Study Committee on Insurance has been assigned to study topics such as: (1) consumer lawsuit lending; (2) release of liens on mortgaged property; and (3) uninsured motorists. The Committee will next meet on August 22nd to discuss worker’s compensation in Indiana.
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The Central Indiana Transit Study Committee has been assigned to study bus and light rail transit funding.
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The Commission on State Tax and Financing Policy has been assigned to study land banks.
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The Environmental Quality Services Council will be meeting on August 28th to discuss recycling issues.
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The Water Resources Study Committee will meet on August 19th to receive updates on Indiana’s water quality from numerous state agencies and industry leaders.
For a complete list of committees and topics they have been assigned, please visit: http://www.in.gov/legislative/interim/committee/minutes/LCOUG5N.pdf.
Please feel free to contact IBA’s Governmental Affairs Director, Tom Havens, at Tom@BuildIndiana.org if you have any questions or would like more information about a summer study committee topic or meeting. |
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Sawyer to Serve as State Auditor
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Governor Pence has selected Dwayne Sawyer as Auditor of State for Indiana. Sawyer is a Purdue University graduate and served as president of the Brownsburg Town Council in 2012 following his election to the Council in 2009. He most recently worked in software development for Positron and also worked on financial management solutions while employed by Roche Diagnostics, Dow AgroSciences and Eli Lilly and Company. Sawyer will complete the term of former Auditor Tim Berry, which runs through 2014 and is up for election next year. Berry has resigned from the position to begin full time as the new state Republican Party chairman. The Auditor of the State has four primary duties: accounting for all of the state's funds; overseeing and disbursing county, city, town and school tax distributions; paying the state’s bills; and paying the state's employees. The swearing-in ceremony for Sawyer is planned for Monday, August 19. |
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REGULATORY
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IBA Staff Meets with Fire & Building Commission Chairman
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IBA staff recently met with Indiana Fire Prevention and Building Safety Commission Chairman John Hawkins, AIA to discuss issues related to housing. Hawkins is a principal and founding partner of Jeffersonville-based Kovert Hawkins Architects, and he has served on the Commission since 2005. |
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Governor Appoints Final Member to Fire & Building Commission
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James Hoch was recently appointed by Governor Pence to serve on the Indiana Fire Prevention and Building Safety Commission. Hoch is the president of Hoch Associates, PC, an architectural firm in Fort Wayne. He is a 1984 graduate of Ball State University and is a registered architect in more than 40 states including Indiana. Hoch fills the last open seat on the 11-member Commission. The Commission adopts the code of building and fire safety laws that affect all buildings classified as Class 1 or Class 2 structures in the state of Indiana. The Commission meets monthly to discuss applications for variances, appeals of state and local orders, and local building ordinances. A complete list of the Commission members can be found here. For the Commission’s meeting schedule, visit http://www.in.gov/dhs/2498.htm. |
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Notices of Intent Filed for 4 Proposed New Codes
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In the IBA Legislative & Regulatory Report – July 19, 2013 we reported the Indiana Fire Prevention and Building Safety Commission received exceptions from the Governor’s Executive Order 13-03, which called for a moratorium on new regulations, excluding rules needed for emergencies, health or safety, to move forward with the 2014 Indiana Building, Fire, Mechanical and Fuel Gas codes. The Commission has filed notices of intent to adopt 4 rules:
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2014 Indiana Building Code (LSA Doc. #13-339): Based on the 2012 International Building Code, first printing, with Indiana amendments (repeals the 2008 Indiana Building Code).
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2014 Indiana Fire Code (LSA Doc. #13-341): Based on the 2012 International Fire Code, first printing, with Indiana amendments (repeals the 2008 Indiana Fire Code).
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2014 Indiana Mechanical Code (LSA Doc. #13-340): Based on the 2012 International Mechanical Code, first printing, with Indiana amendments (repeals the 2008 Indiana Mechanical Code).
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2014 Indiana Fuel Gas Code (LSA Doc. #13-342): Based on the 2012 International Fuel Gas Code, second printing, with Indiana amendments (repeals the 2008 Indiana Fuel Gas Code).
The proposed rules and their fiscal impact analyses must receive approval from the State Budget Agency/Office of Management and Budget before the proposed rules will be published in the Indiana Register. A chart of the rule adoption process can be found here.
IBA staff will continue to track the progress of these proposed codes and will inform the membership once the proposed rules are published and the public hearings are scheduled. |
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IBA Member Receives Variance for Sewer Line Installation in Townhouse Project
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Pulte Homes, a member of the BA of Greater Indianapolis, received a variance from the Indiana Fire Prevention and Building Safety Commission to install a sewer line in a legally recorded easement beneath its townhouses. The variance was needed since this installation conflicts with an interpretation which became effective May 15, 2010 and does not permit systems and equipment for townhouses which include, but are not limited to, gas electrical, telephone, cable, fiber optics, water, and sanitary to cross property lines. The Commission’s decision allows Pulte and other townhouse builders in Indiana to construct townhouses in this manner provided they file an application for variance with the Commission. The application is available here. |
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NAHB
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Housing Starts Rise 5.9 Percent in July
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Nationwide housing starts rose 5.9 percent to a seasonally adjusted annual rate of 896,000 units in July as multifamily construction rebounded from a dip in the previous month, according to newly released figures from HUD and the U.S. Census Bureau. Meanwhile, single-family construction recorded a modest decline from a rate that was upwardly revised for the previous month. “Builders are making every effort to keep up with the rising demand for new homes and apartments, and construction in both sectors is running well ahead of the pace we saw at this time last year,” noted Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. “However, ongoing issues with accessing credit and limited supplies of finished lots and labor are making it tough to do that, particularly for single-family builders.” “Today’s report is in line with our forecast for continued, gradual strengthening of housing starts and permit activity through the rest of the year,” said NAHB Chief Economist David Crowe. “The double-digit bounce-back on the multifamily side was in keeping with typical month-to-month volatility in that sector,” he noted, “while the sideways movement in single-family was a result of unusually wet weather in the South and West.” Single-family housing starts declined 2.2 percent from an upwardly revised pace in June to a seasonally adjusted annual rate of 591,000 units in July. Meanwhile, a 26 percent gain to a 305,000-unit pace on the multifamily side offset a similar dip in the previous month. Regionally, combined housing starts activity posted solid gains of 40.2 percent in the Northeast, 25.4 percent in the Midwest and 7.2 percent in the West, respectively, in July, while the South posted a 7 percent decline. Issuance of building permits, which can be an indicator of future building activity, rose 2.7 percent to a seasonally adjusted annual rate of 943,000 units in July. Single-family permits dipped 1.9 percent to 613,000 units from a strong pace in the previous month, while multifamily permits gained 12.6 percent to 330,000 units. Regionally, combined permit issuance increased across the board in July, with gains of 1 percent, 2.8 percent, 1.1 percent and 7.1 percent in the Northeast, Midwest, South and West, respectively. |
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Improving Markets List Includes 247 Metros in August
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A total of 247 metropolitan areas qualified to be listed on the National Association of Home Builders/First American Improving Markets Index (IMI) for August. While this is eight metros shy of the number listed on the IMI in July, it is approximately three times the number of metros that qualified for the list in August of 2012. Indiana cities making the list are Columbus, Elkhart, Evansville, Fort Wayne, Indianapolis, Lafayette, Muncie, and Terre Haute.
The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. A complete list of all 247 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in August, is available at www.nahb.org/imi. |
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Builder Confidence Rises Three Points in August
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Builder confidence in the market for newly built, single-family homes rose three points to 59 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for August. This fourth consecutive monthly gain brings the index to its highest level in nearly eight years. “Builders are seeing more motivated buyers walk through their doors than they have in quite some time,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “What’s more, firming home prices and thinning inventories of homes for sale are contributing to an increased sense of urgency among those who are in the market.” “Builder confidence continues to strengthen along with rising demand for a limited supply of new and existing homes in most local markets,” noted NAHB Chief Economist David Crowe. “However, this positive momentum is being slowed by the ongoing headwinds of tight credit and low supplies of finished lots and labor.”
Derived from a monthly survey that NAHB has been conducting for 25 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 from 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. Two of the HMI’s three components posted gains in August. The component gauging current sales conditions rose three points to 62, while the component gauging sales expectations in the next six months gained a single point to 68 and the component gauging traffic of prospective buyers held unchanged at 45. All but one region saw a gain in its three-month moving average HMI score in August. The Midwest and West each posted six-point increases, to 60 and 57, respectively, while the South posted a four-point gain to 54 and the Northeast held unchanged at 39. |
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Upcoming Education Opportunities
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August 21, 2:00-3:00 PM ET, NAHB Member Fee: $24.95
Achieving Green Development Objectives Through Site Planning and the NGBS
Land-planning professionals will walk through how to evaluate green and sustainable opportunities on a development site that can help achieve your project's best potential and even earn points under the ICC 700 National Green Building Standard (NGBS). Get practical, cost-effective ideas to enhance your project, gain an understanding of land-planning alternatives that add to development potential, and learn how to create competitive but sustainable green development options that can work in your market.
August 28, 2:00 - 3:00 PM ET, NAHB Member Fee: $24.95
Boomers in Your Backyard
Discover the demographic trends that are forming a very large group of mature-market buyers and renters in both the general housing market and in the active-adult sector. In this webinar, participants will learn what's important for active adult communities in terms of location, zoning, and amenities. Participants will also learn what's different in marketing to this group of buyers, and what is available specifically to such buyers in the way of financial help.
September 17-19, Indianapolis
Certified Green Professional (CGP) Designation Program
Indiana Builders Association will offer courses for the Certified Green Professional (CGP) designation program September 17-19 in Indianapolis. The 2-day ‘Green Building’ course teaches how to apply the newly revised ICC 700-2012 National Green Building Standard® (NGBS) in the construction of a new home, remodel, site development or multifamily project. The training session will conclude with the ‘Business Management’ course on day 3. Details are being finalized. For more information or to reserve your seat, please contact Carlie Hopper at (800) 377-6334 ext. 206.
October 2, 2:00 – 4:00 PM ET, NAHB Member Fee: $29.95
Fall NAHB Construction Forecast Webinar
Moody's Analytics Chief Economist, Mark Zandi will train his exacting eye on housing, joining NAHB's David Crowe and Robert Denk in this webinar. A trusted adviser to policymakers and an influential source of economic analysis for businesses, journalists and the public, Zandi has frequently testified before Congress and has advised the Obama administration. Hear Zandi's take on these issues and others:
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Housing's role in the economic recovery
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The positive forces moving the economy and housing forward
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Other outside forces that remain a concern
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Future federal reserve actions and their impacts
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