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NEWS
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Are you Supporting Housing on September 26?
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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, sponsor or donate, please complete and return the registration form. For more information, please contact Heather Sturgeon at (800) 377-6334 ext. 207. |
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Elimination of MID on Second Homes Would Impact Several Indiana Counties
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Homeownership is under attack as federal lawmakers look to tamper with the mortgage interest deduction and other incentives that allow families to attain the American Dream. In Indiana, several counties have a larger percentage of second home housing stock. Contrary to assertions by some people, the income tax deductions for mortgage interest and real estate taxes primarily benefit middle class taxpayers with incomes between $50,000 and $200,000, according to the findings of a study by the National Association of Home Builders. Taxpayers earning less than $200,000 pay about 40% of all income taxes. However, they receive about two-thirds of the total benefit of the mortgage interest deduction and about 80% of the total benefit of the real estate tax deduction. Moreover, larger benefits go to larger households and families, such as those with children. And as a share of household income, larger benefits are collected by families with less than $200,000 income, indicating that these tax rules make the tax system more progressive.
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Indiana County |
% of housing stock second homes |
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Pulaski County |
10.21% |
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Switzerland County |
11.26% |
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LaGrange County |
11.48% |
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Kosciusko County |
11.90% |
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Owen County |
12.70% |
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Starke County |
13.40% |
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Crawford County |
13.63% |
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Parke County |
15.03% |
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White County |
15.80% |
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Brown County |
20.07% |
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Stueben County |
22.34% |
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Aynes House Renovation
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The Governor’s Public Building Foundation is a 501 (c)(3) organization operated exclusively to benefit the operation and use of buildings belonging to the state, such as the Governor’s Residence and the Aynes House. The Aynes House is located in Brown County State Park and has been used by Indiana’s Governors as a retreat. The Aynes House is in need of some repairs and the Foundation is looking for interested parties to help with time, material, or cash donations. Donations to the foundation are tax-deductible as charitable contributions for US federal income tax purposes. Specific material donations are for a kitchen renovation and renovation of the main and upstairs bathroom. If you are interested in helping out with this project, please contact Indiana Builders Association CEO Rick Wajda at (800) 377-6334 ext. 204 or at Rick@BuildIndiana.org. |
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Residential Mortgage Rates Rise
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The average rate for 30-year mortgages rose to 4.72 percent from 4.62 percent in the week ended September 4th. The rate for 15-year mortgages rose to 3.74 percent from 3.66 percent. |
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LEGISLATIVE
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Title Insurance Rates May be on the Rise
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The Indiana General Assembly passed a bill last session, Senate Bill 370 (SB 370), that requires title insurers to file their title insurance policy rates with the Department of Insurance for review and approval. The ostensible purpose of the legislation was twofold: first, to prevent unscrupulous companies from charging exorbitant fees for title insurance; and second, to ensure that title insurers were adequately covering the actuarial risk associated with the policies they issued. While this may seem like an innocuous change in state law, IBA has received some reports of substantial increases in title insurance rates since the law went into effect on July 1st. Right now IBA staff is investigating the issue and trying to obtain a clearer picture of what effect this change in law is having now and will continue to have on title insurance rates in the future. If you have experienced an increase in title insurance rates in the past 3 months, please call or email Tom Havens, IBA’s Governmental Affairs Director, and provide a brief background of the rates you have historically paid for title insurance versus the rates you have paid (or been quoted) in the past 3 months. Tom can be reached by phone at (800) 377-6334 ext. 205 or by email at Tom@Buildindiana.org. |
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Should Residential Landlords be Required to Register with the State or Local Government?
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The Interim Study Committee on Economic Development will meet on September 25th to take a look at whether local governmental units (e.g., counties, cities and towns) should be permitted to regulate residential landlords, including mandates that require landlords to register, obtain a license or take classes prior to becoming a landlord of residential property. IBA staff will continue to closely monitor this issue to make sure that our interests are represented. Please feel free to contact a member of IBA’s governmental affairs team if you have any questions about the upcoming study committee meeting, or would like to share any thoughts or comments concerning this issue. Click here to read the complete bill that passed the 2013 Indiana General Assembly. |
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Keefer Named Pence's Legislative Director
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Governor Pence named Commissioner of the Indiana Department of Labor Sean Keefer as his Legislative Director, replacing Heather Neal who resigned last month. Under the Daniels administration, he served as Deputy Commissioner of Labor, as well as Legislative Director and Public Information Officer. Previously, Keefer served as Chief of Staff in the Indiana State Department of Health (ISDH) and Deputy Secretary of State and Chief of Staff in the Indiana Secretary of State’s Office. Keefer begins his new role on September 18, 2013. |
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Lake County Judge Rules Right-to-Work Law Violates State's Constitution; State Will Appeal
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In 2012, Indiana became the 23rd state in the nation to forbid contract provisions that force employees to pay dues or fees to unions as a condition of employment. Since then, members of the International Union of Operating Engineers Local 150 in northwest Indiana have turned to the courts to try to overturn the law. Local 150 lost a suit it filed in February 2012 in Hammond’s U.S. District Court claiming the right-to-work legislation violates federal and state constitutions because it makes it illegal for unions to collect fees for services that they are federally required to provide. On September 5, 2013, Lake County Superior Court Judge John Sedia dismissed four of the five counts the union sought and ruled the state's right-to-work law violates the state constitution that does not allow services "without just compensation. The ruling allows the law to stay in effect during the appeal process.
Bryan Corbin, a spokesman for Attorney General Greg Zoeller, wrote "The State will take an immediate appeal to the Indiana Supreme Court of this declaratory judgment which we contend is incorrect, in light of the fact the same court granted the State's motion to dismiss on four other counts. The Indiana Attorney General's Office will aggressively defend the authority of the people's elected representatives in the Legislature as we successfully defended this same statute from the same plaintiff who challenged it in federal court." Indiana Supreme Court rule 4(a)(1)(b) gives exclusive jurisdiction to the Supreme Court for appeals for final judgments declaring a state statute in whole or in part unconstitutional. The judgment is subject to mandatory review within 30 days.
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State Representative Resigns
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Indiana House Representative Phyllis Pond (R-New Haven) has announced her resignation effective October 15, 2013. Rep. Pond has served constituents in Allen and DeKalb counties in northeast Indiana since 1978 and was recently diagnosed with pulmonary fibrosis. Rep. Pond has served on the House Ways and Means Committee as well as the Judiciary Committee |
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REGULATORY
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Forum to Discuss Moisture Control in Construction
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Controlling moisture is the key to preventing mold both during and after construction. A program to effectively manage moisture intrusion and wet processes used during the construction process is integral in preventing mold growth. This presentation will explore why mold grows, the hazards of mold and some actions that can be taken to prevent mold growth both during and after construction. The Metro Indianapolis Coalition for Construction Safety (MICCS) Safety Directors Forum is free and will be held on September 25th from 8:00 a.m. to 9:30 a.m. at ERMCO (1625 W. Thompson Rd., Indianapolis). To register, click here. |
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NAHB
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Final Push for Building Officials' Support for Changes to the 2015 Edition of Model Building Codes
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The NAHB is encouraging builders to contact their local building officials attending the ICC Final Action Hearings on Oct. 2-10 in New Jersey to voice concerns about proposed changes to the 2015 edition of model building codes. Thousands of proposals that together could add thousands of dollars to the cost of a new home without a corresponding benefit in energy efficiency or safety. The federation is seeking more flexibility to enable home builders to have the tools to design homes to be cost-effective – and still include the features their buyers need or prefer. If code officials are swayed by proprietary interests, the additional construction costs will keep thousands of families from being able to afford a new home. Not only will that delay the housing recovery, it could force these families to stay in drafty, less safe older homes without the benefits that new construction provides. Please review these resources available on NAHB’s code information Web pages:
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Is the 2012 energy code cost effective? This analysis shows that it isn't.
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Congress is concerned about the code's product-specific requirements: Read their letter to the Department of Energy.
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Learn why the U.S. Conference of Mayors based their energy-efficiency resolution on the wrong information.
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Let’s remove artificial energy code restrictions and improve cost effectiveness. Learn how here.
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Ask for support from your mayor, county executive or governor by customizing this template.
For additional information, please contact Neil Burning, VP Construction, Codes & Standards at (800) 368-5242 x8564 or at nburning@nhab.org.
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ICC's cdpACCESS Preview & Voting Test to Follow Group B Public Comment Hearings Oct. 2-10
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Following Group B Public Comment Hearings Oct. 2-10 in Atlantic City, N.J., the International Code Council (ICC) will conduct tests of the online voting process for a handful of proposed changes to the 2015 International Codes. The test is the next step in the development of cdpACCESS, ICC’s initiative to create the code development process of the future. The current process will be unchanged: Code Council Voting Members will take action on public comments to proposed changes to the Group B International Codes at the Public Comment Hearings. Eligible Voting Members who attend the hearings will vote in person, as usual, when the moderator calls for a vote. This vote will determine the final outcome. Following the hearings, eligible voters will be able to cast their votes on the selected code changes online. Eligible voters will receive a communication from ICC when the system is available. Since the online votes will be a test, the results will not be binding. ICC plans to launch cdpACCESS on Nov. 15 in time for the Group C code development cycle. |
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Shortage of Lots Slows Housing Recovery
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A shortage of buildable lots, especially in the most desirable locations, has emerged as one of the key factors holding back a more robust housing recovery, according to the latest survey on the topic conducted by the National Association of Home Builders (NAHB). “In our August 2013 survey, 59 percent of builders reported that the supply of lots in their markets was low or very low—up from 43 percent September of last year, and the largest low supply percentage we’ve seen since we began conducting these surveys in 1997,” said NAHB Chief Economist David Crowe. “One reason is that many residential developers left the industry, abandoned certain markets or simply stopped buying land and developing lots during the downturn.” The 59 percent includes 39 percent who characterized the supply of lots simply as “low” and 20 percent who said the supply of lots was “very low.” Another 22 percent said the supply of lots was “normal,” 10 percent said it was “high” and four percent said “very high.” Six percent said they didn’t know or weren’t sure. The survey found that lot shortages tended to be especially acute in the most desirable, or “A,” locations. Thirty-four percent of builders said that the supply of A lots was very low, compared to 18 percent for lots in B and 12 percent for lots in C locations. The shortages have also translated into higher prices for builders who are able to obtain developed lots to build on. In the same survey, 34 percent of home builders said the price of developed A lots was somewhat higher than it was a year ago, and 26 percent said the price was substantially higher. In comparison, 15 percent of builders said the price of B lots was substantially higher than a year ago, and 11 percent said the price of C lots was substantially higher. Ultimately, higher lot prices are passed on to buyers in the form of higher house prices. The shortage of buildable lots has emerged against the backdrop of a housing recovery that is still modest by historical standards. To this point, housing starts have recovered from a low of 550,000 in 2009 to an annual rate of just fewer than 900,000 in the Census Bureau’s latest release. Historically, starts averaged more than 1.5 million a year from 1960-2000, without ever plunging below 1 million until 2008. “There is still a substantial pent-up demand for housing waiting to be unleashed as the overall economy and labor situation improves,” said Crowe. “Lot shortages are one of several barriers that have arisen, restraining builders from responding completely to increased demand. Other barriers include a shortage of labor in carpentry and other key building trades, limited availability of loans even for credit worthy home builders and home buyers; and, more recently, an uptick in interest rates.” |
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OSHA Proposes Changes to Silica Rule; NAHB Joins Coalition Urging Compliance Alternatives
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A coalition of construction industry groups is concerned about a proposed rule from the Occupational Safety and Health Administration (OSHA) that’s intended to protect workers from inhaling dust containing silica, created by activities such as cutting brick or block, and sawing, grinding or drilling concrete. Announced Aug. 23 in a press conference that laid out few details, the proposed rule seems to call for one-size-fits-all measures that contradict existing safety and quality assurance practices for different types of contractors.
For instance, spraying water to reduce dust may be practical in some construction projects, but using it inside a home while cutting granite counters can cause mold. In cold weather, spraying water while cutting asphalt roof shingles could cause ice to form on the slanted surface, endangering workers. Ventilation and dust-capture systems can inhibit the safe operation of tools. And if prescribed measures are not practicable, contractors might be forced to eliminate products with silica altogether, including concrete, brick, granite, and other common construction materials. Independent studies have estimated costs for construction industry compliance will exceed $1 billion per year.
NAHB is part of the Construction Industry Safety Coalition, which is seeking a feasible and cost-effective crystalline silica regulation that improves safety and health protection measures for workers. The coalition represents thousands of employers working to protect hundreds of thousands of workers in home building, road repair, heavy industrial production, specialty trades and materials supply. It was formed to encourage OSHA to develop better choices for compliance with the construction-specific silica rule: alternatives that also address costs, consistency with existing federal regulations and do not overly burden small businesses.
Construction Industry Safety Coalition members include:
• Associated Builder and Contractors (ABC)
• Associated General Contractors (AGC)
• Association of the Wall and Ceiling Industry (AWCI)
• American Road and Transportation Builders Association (ARTBA)
• American Subcontractors Association (ASA)
• International Council of Employers of Bricklayers and Allied Craftworkers (ICE)
• Mason Contractors Association of America (MCAA)
• Mechanical Contractors Association of America (MCA)
• National Electrical Contractors Association (NECA)
• National Roofing Contractors Association (NRCA) |
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NAHB Sunsets the Improving Markets Index
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Monday will be the last release of the NAHB/First American Improving Markets Index (IMI). Next month, NAHB will introduce a new Leading Markets Index that moves the index focus from improving markets to markets that are approaching and eventually exceeding their "normal" economic activity levels. The same three factors will dictate the index: single-family permits, home prices and employment. Look for a complete explanation later in September. |
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Member Discounts
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HBA members have access to discounts and savings opportunities offered by many top companies. You can access each program here or download a one-page overview of all discounts including phone numbers and program codes. When using these programs please identify yourself as a member of the National Association of Home Builders. For more information, please contact Christy Ronaldson at (800) 368-5242 ext. 8273 or via e-mail at cronaldson@nahb.org. |
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2014 IBS: Register in September to Save!
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It's that time of year again: registration is open for the 2014 NAHB International Builders' Show® (IBS)! Get ready for new and exciting events, programming and vendors at IBS 2014 held February 4-6, 2014 in Las Vegas. Indiana’s hotels are The Venetian/Palazzo and Treasure Island. Go to www.buildershow.com for all the details!
IBS is co-locating with NKBA's Kitchen & Bath Industry Show (KBIS) to present the first annual Design & Construction Week™. This new mega-event will feature over 1,500 exhibitors and more than 600,000 square feet of exhibits. And your IBS registration will give you access to the exhibits of IBS and KBIS as well as the exhibits of a third show, the International Window Coverings Expo.
Take advantage of three ways to save with September-only offers—just for NAHB members! That's right, these offers are only good through September 30, so don't delay and register now.
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Complimentary Expo Pass*
NAHB members and co-workers can register for a complimentary IBS expo pass. Beginning Oct. 1, there will be a $50 registration fee.
*Manufacturers and Software Provider registrants are not eligible.
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Free Spouse Registration
Add your spouse to your registration for free. Starting Oct. 1, spouse registration will be $20.
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Save $100 on Full Registration
Gain access to more than 100 first rate education sessions along with your expo pass for only $250 ($100 off the early full registration price)! And after you register for IBS, book your housing to get the best rate at your preferred hotel. The room deposit won't be charged until mid-January so you have nothing to lose.
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Upcoming Education Opportunities
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Whether you’re looking for continuing education for your professional designation*, you want to learn more about a subject related to the building industry, or you want to network with other building industry professionals, consider these upcoming NAHB educational opportunities:
* If you hold an NAHB professional designation, each one hour webinar counts for one hour of continuing education credit. View a list of past webinars at the Webinar Rewind page.
Beginning September 3
Online Courses about Twitter; Introduction to Social Media; Improving Email Promotions; Mobile Marketing or Video Marketing
September 18, 2:00-3:00 p.m. ET, NAHB Member Fee: $24.95
Risk Management Fundamentals for Home Builders and Contractors
September 25, 2:00-3:00 p.m. ET, NAHB Member Fee: $24.95
Planning for Profits in Your Remodeling Business
Thursday, September 26, 2:00-3:00 p.m. ET, NAHB Member Fee: $24.95
Keep Bedbugs from Infesting Your Company's Bottom Line
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