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NEWS
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Indiana Single-Family Building Permits Down 14 Percent in July
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Single-family building permits in Indiana decreased 14 percent in July over the previous month while numbers decreased 8 percent in July compared to the same time last year according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development.
In July 2015, there were 1,124 single-family building permits issued compared to 1,218 in 2014. Single-family permits for the first seven months of 2015 are nearly even compared to the first seven months of 2014.
"Many areas of the state experienced a very wet July, which certainly impacted housing starts," said Indiana Builders Association Vice President Jim Pressel. "Although building permit numbers were lower than the previous month, they are significantly higher than the same time four years ago."
The latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), which measures builder confidence, continued its slow rise to a nine-plus-year high of 61, up one point from July. A reading above 50 means most builders generally hold a favorable view of the market for newly built, single-family homes. The index has been at 60 or more since June and above the tipping point of 50 since July 2014.
"We have seen modest improvement in single-family building permits over the past few years as more existing home owners accumulate greater equity which can be used to purchase a new home," said Pressel.
You may view the press release here.
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Healthy Buyer Demand Persists in July 2015
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Indiana REALTORS® recently released statewide housing data that confirms strong buyer demand is sustaining competitive markets with reduced inventories. The latest Indiana Real Estate Markets Report shows July 2015 outperformed last July in all but one category:
- Median sale price of homes increased 6.1 percent to $140,000.
- Average sale price increased 7.1 percent to $170,274.
- Percentage of original list price received increased 0.3 percent to 94.9 percent.
- Pending home sales increased 5.9 percent to 7,459.
- Closed home sales increased 8.6 percent to 8,476.
- Number of new listings decreased 6.2 percent to 11,188.
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Indiana DLGF Issues FAQ on Personal Property Exemption
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The Indiana Department of Local Government Finance (DLGF) has provided answers to frequently asked questions (FAQ) on personal property exemption. The guidance document is attached along with a sample certification of eligibility for personal property exemption.
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Voluntary Contractor Registry Proposal Comments Due October 12
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The Indiana Builders Association Board of Directors voted to move forward with the voluntary contractor registry proposal, with the condition that IBA members have an opportunity to submit comments, questions, and suggestions about the proposal in advance of the December Board meeting. The proposal is attached to this report. The comment period is open until 5:00 p.m. on Monday, October 12th. If you have any questions, comments, or suggestions for the proposal, please contact IBA Governmental Affairs Director Tom Havens by email at: Tom@BuildIndiana.org; or by phone at: (317) 917-1100 ext. 205. You can also ask your local HBA Executive Officer to forward comments to IBA. |
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Get Your Letters! CAPS & CGP Courses Offered in Indianapolis & Elkhart
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Indiana Builders Association will offer courses for the Certified Aging-in-Place Specialist (CAPS) designation program in Indianapolis, IN on September 30-October 2, 2015 and has partnered with the BA of Elkhart County to offer courses for the Certified Green Professional (CGP) designation program October 28-30 in Elkhart, IN.
Click here to register or contact Carlie@BuildIndiana.org or at (800) 377-6334 x 206. |
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REGULATORY
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Gov. Pence Promotes Comer to IDEM Commissioner
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Carol Comer, the chief of staff at the Indiana Department of Environmental Management (IDEM), has been promoted to commissioner by Governor Pence. Comer replaces Tom Easterly who is retiring after 10 years of service to the state of Indiana. She has business and law degrees from Indiana University, IU School of Public and Environmental Affairs and IU Robert H. McKinney School of Law.
Prior to becoming chief of staff in February, Comer was IDEM's general counsel. Previously, she spent eight years as senior administrative law judge for the Indiana Board of Tax Review and a year as administrative law judge with the Indiana Utility Regulatory Commission. |
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NAHB
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NLRB Ruling Would Have Crippling Effect on Builders and Remodelers
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According to a press release issued by the National Labor Relations Board, in a 3-2 decision involving Browning-Ferris Industries of California, the National Labor Relations Board refined its standard for determining joint-employer status. The revised standard is designed "to better effectuate the purposes of the Act in the current economic landscape." With more than 2.87 million of the nation's workers employed through temporary agencies in August 2014, the Board held that its previous joint employer standard has failed to keep pace with changes in the workplace and economic circumstances.
In the decision, the Board applies long-established principles to find that two or more entities are joint employers of a single workforce if (1) they are both employers within the meaning of the common law; and (2) they share or codetermine those matters governing the essential terms and conditions of employment. In evaluating whether an employer possesses sufficient control over employees to qualify as a joint employer, the Board will - among other factors -- consider whether an employer has exercised control over terms and conditions of employment indirectly through an intermediary, or whether it has reserved the authority to do so.
In its decision, the Board found that BFI was a joint employer with Leadpoint, the company that supplied employees to BFI to perform various work functions for BFI, including cleaning and sorting of recycled products. In finding that BFI was a joint employer with Leadpoint, the Board relied on indirect and direct control that BFI possessed over essential terms and conditions of employment of the employees supplied by Leadpoint as well as BFI's reserved authority to control such terms and conditions.
The Board ordered that within 14 days the ballots that were impounded on April 25, 2014 shall be counted and the appropriate certification issued.
According to Tom Woods, Chairman of the National Association of Home Builders (NAHB) and a home builder from Blue Springs, Mo., "the decision by the NLRB to expand the definition of a joint employer not only delivers a huge blow to businesses across the country who rely on the work of sub-contractors, by threatening a business owner's control of their own company, but it is also bound to have a chilling effect on the overall economy and job growth.
"The NLRB abandoned a standard that has been recognized for decades, and expanded the definition of a joint employer to now hold businesses liable for workers they do not even employ, potentially even putting them on the hook for legal ramifications. The new standard no longer requires that a business 'directly and immediately' control a workforce run by another business, to be named a joint employer, but rather expands the definition to include indirect control.
"The home building industry, which is primarily made up of small businesses who rely greatly on the work of sub-contractors would overwhelmingly be harmed by the new standard. Building a home requires the work of multiple specialty trade contractors such as roofers, electricians and framers, but these small builders can't afford to have a large full-time staff to include all of these trades, so they contract with specialty trades based on project needs. With the NLRB's recent decision, these small businesses would now be subject to unprecedented Board jurisdiction. The overall construction sector is made up of more than two million individual proprietorships, all of whom would be subject to this new rule.
"If this ruling is allowed to stand, it will cripple small businesses across the country, including the home building industry as it is in its fragile recovery. NAHB intends to continue its fight against this regulatory overreach, and put the control back in the hands of small businesses."
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Fifth Circuit Court of Appeals Affirms Holding that Builder Had an Implied License to Use Architectural Plans
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In Hunn v. Dan Wilson Homes, Inc., Case Nos. 13-11297, 14-10365 (5th Cir. June 15, 2015), the Fifth Circuit Court of Appeals held that a former draftsman and a custom home builder both had an implied nonexclusive license to use architectural plans because the plans were delivered to the builder without any "written or orally communicated restrictions about the limits on [the builder's] ability to use the delivered drawings." In this case, the draftsman resigned from the architectural firm (Hunn Designs) mid-way through designing four custom home plans for Dan Wilson Homes. Hunn sought to limit the use of the plans by copyrighting them, but the court held that there was an implied license for both the plans printed from the AutoCAD program as well as the digital versions.
The aforementioned article is featured in the July 2015 issue of Construction Liability and Risk Management Update.
The Construction Liability and Risk Management Update covers the risks associated with the construction of new homes and remodeling with information on construction law, insurance and risk management topics, including, but not limited to, emerging issues, new case law, prominent construction litigation, new legislation, and other trends and issues related to residential construction.
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NAHB Efforts Roll Back Tighter Floodplain Regs
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Thanks to the work of NAHB members, leadership and staff, the U.S. Army Corps of Engineers will pull in the reins on a sweeping new standard that could have had a dramatic impact on home building and development.
This is an important victory for our industry, and we want you to know about it.
NAHB talks with the Corps have produced results that will blunt the impact of the new Federal Flood Risk Management Standard, which could have placed much tighter limits on where homes can be built.
In January, President Obama issued an executive order establishing the new standard. It expanded what we know as the 100-year floodplain to either the climate-informed science floodplain, the 500-year floodplain, or the 100-year floodplain plus an additional 2 to 3 foot freeboard.
Given the language of the executive order, NAHB was concerned that the new floodplain definition could adversely affect residential housing projects and homes that get HUD funding, require EPA permits and participate in the National Flood Insurance Program (NFIP), making housing more expensive for your buyers.
NAHB members and staff spoke in listening sessions, submitted comments and continually pushed federal agencies to limit the applicability of the new standard.
We're proud to tell you that these efforts have produced results.
- In June, FEMA confirmed that the new standard will not affect the standards or rates of the NFIP or the minimum floodplain management criteria for communities. FEMA will also continue to use the 1% annual chance floodplain as the basis for the Flood Insurance Rate Maps and the overall NFIP.
- Last week, the Army Corps of Engineers released a fact sheet stating that Clean Water Act Section 404 wetland permits will not be subject to the expanded floodplain standard.
- Also last week, HUD confirmed to NAHB that the standard would not apply to newly constructed single-family homes financed with FHA-insured mortgages. It had already determined that the standard would not apply to existing homes purchased with an FHA-insured mortgage.
- The standard will apply to multifamily properties using FHA insurance for new construction or substantial rehabilitation and to FHA 203(k) rehabilitation loans. HUD will release its proposal soon, and NAHB will be sure to weigh in on it.
You can learn more about these efforts by contacting our regulatory staff: Owen McDonough at 800-368-5242 x8662, and Mike Mittelholzer, at x8660.
NAHB will continue to meet with the agencies as they update their regulations. And we'll continue to monitor the development of the various documents so we can ensure our members' concerns are addressed - and that we can continue to build and remodel homes for our clients. |
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It's September! Time to Register for the 2016 International Builders' Show
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The 2016 NAHB International Builders' Show® (IBS) will be held January 19-21, 2016 in Las Vegas, Nevada. More than 1,300 of the industry's top manufacturers and suppliers covering 500,000 net square feet of exhibit space will pack the Show floor with the latest and most innovative products.
Attendees who purchase the full conference registration can attend more than 120 education sessions covering the latest techniques and trends in the building industry, as well as other exciting education features such as the new Innovation Hub covering the latest innovations in technology, building materials and more.
As always, all attendees can attend Exhibitor Floor Forums, offering product demos from several featured exhibitors, the High-Performance Building Zone, where building science experts lead a series of interactive sessions on sustainable and green technologies, and IBS Live! sessions featuring lively demos and presentations on a variety of topics.
Attendees also have their pick of numerous special events. Kicking off: acclaimed Tonight Show host and stand-up comedian Jay Leno, keynote speaker for the opening ceremonies. Another show favorite is the IBS Spike Concert presented by GEICO, where attendees will have the chance to hear a performance of greatest hits by the No. 1 selling duo in history, Hall & Oates.
Another of the many draws of IBS is The New American Home.® Now in its 33rd year, this official Show home showcases innovative construction technologies, emerging design trends and the latest building products. NAHB and Professional Builder magazine co-produce The New American Home.
During September, IBS registrants can take advantage of several registration discounts. For a full list of offerings, visit BuildersShow.com/fees.
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NAHB Member Discounts
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As a benefit of being a member, you have access to discounts and savings opportunities offered by many top companies. NAHB members 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.
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Sponsored by
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Upcoming Events
CAPS Designation Program
September 30-October 2, 2015 | Indianapolis, IN
NAHB Fall Board of Directors Meeting
September 27-29, 2015 | Dallas, TX
CGP Designation Program
October 28-30, 2015 | Elkhart, IN
IBA Election of Officers, Board & Committee Meetings
December 6-7, 2015 | Fishers, IN
NAHB International Builders' Show & Annual Meeting of the Membership
January 19-21, 2016 | Las Vegas, NV
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