August 4, 2017  
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 Inside the Legislative & Regulatory Report
  IBA Announces Land Use Seminar as Home Building Increases  
  With data released from the U.S. Census Bureau on Indiana single-family permits filed, numbers indicate a growing housing market. As home building picks up for the first half of 2017, it is important that builders and developers are educated on the complicated land use issues taking place across the state. For this reason, the Indiana Builders Association will hold a Land Use Seminar on Tuesday, October 24 from 9 a.m. to 3 p.m. at the Wellington Conference Center in Fishers. Presented by Pulte Homes' David Compton, the seminar will cover topics such as land acquisition and development finance, land development appraisals, joint ventures, construction site run-off and much more. The cost for members is $149 and $249 for non-members. To register, please visit www.buildindiana.org/landuseseminar or email Chris Fisher at chris@buildindiana.org.  

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  Builders Struggle to Find Common Ground on IRC Review Committee  
  Indiana's Residential Code Review Committee met this week to review proposed code changes pertaining to the requirements for floors in the 2015 International Residential Code (IRC). The five (5) home builders who serve on the committee, alongside five (5) building officials, two (2) fire officials, and three (3) architects, and one (1) engineer, are struggling to gain support from fellow committee members on proposed code changes that are cost-effective, safe alternatives. These are proposals that were previously supported by, and even written by in many cases, building officials during prior code review cycles. Without amendments to the code, which do not jeopardize safety but do take into account affordability, the cost of home building will increase exponentially.
Here's how you can help:
  • Identify amendments from the 2005 Indiana Residential Code to carry forward.
  • Identify onerous, restrictive, or costly provisions in the 2015 IRC to delete.
  • Reach out to your local building and fire officials and remind them that everyone benefits from a healthy housing economy. They can encourage their representatives on the committee to support cost-effective code change proposals that maintain safety while maintaining affordability and eliminating product-specific and overly stringent requirements from the state's minimum code for residential construction.
The Committee's next meeting is September 6th at 9:00 a.m. in downtown Indianapolis, and they will review proposed code changes to Chapter 6 Wall Construction. Proposals are due August 30th. You can follow committee action and view the meeting notice, agenda, and proposed code changes at http://www.in.gov/dhs/2375.htm under the heading Indiana Residential Code Committee.
 

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  IDEM to Update Rule 5 for Storm Water Runoff Associated with Construction Activity  
  The Indiana Department of Environmental Management (IDEM) is in the process of converting the construction storm water requirements (Rule 5) from a permit-by-rule into a general permit. This conversion also includes updating and clarifying requirements for erosion and sediment control that is associated with construction site run-off. IDEM formed an invitation only advisory group, of which IBA is a participant, to discuss the proposed changes to Rule 5 and offer any comments or suggestions prior to the rule being adopted. IDEM is planning to hold a stakeholder meeting in late August to discuss the proposed rule and any suggestions/recommendations from the advisory group. Please click on following link to the existing Rule 5 (starts on page 11). If you are interested in reviewing the proposed language, please contact Rick Wajda at rick@buildindiana.org.  

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  Commission Requests Support for Indiana Energy Conservation Code  
  The 2010 Indiana Energy Conservation Code (IECC), which is based on ASHRAE 90.1, 2007 edition and applies to Class 1 structures, was set to expire January 1, 2017. On December 28, 2016, Governor Pence issued an Executive Order extending the IECC for a year to allow the Indiana Fire Prevention and Building Safety Commission (Commission) to determine whether to readopt the code in effect, amend the code in effect, or review and adopt a new code. In January 2017, the Commission approved the readoption of the IECC and the simultaneous exploration of updating the code.

IBA has long-supported the adoption of statewide building codes in Indiana.  Uniform building codes offer a level and predictable playing field for designers, builders and suppliers. IBA supports the readoption of the IECC as it maintains uniform, statewide requirements for energy efficiency in buildings and multi-family projects.

*One and two-family dwellings and townhouses must comply with the energy efficiency requirements in the Indiana Residential Code; therefore, they are not directly impacted by the expiration of the IECC.
 

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  IURC Releases Annual Report  
  The Indiana Utility Regulatory Commission, abiding by Indiana law, has published their most recent annual report for the fiscal year 2010-2011. Here you can find information on staff members, consumer complaints, annual budget, commission rulemakings, rate changes and bill surveys and comparisons. This information is important for both home builders and home buyers as rates vary among the state. To view a copy of the report, please click here.
 

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  Joint Employer Bill Would Provide Certainty to Business Community  
  The National Association of Home Builders (NAHB) commended bipartisan legislation introduced in the House that would help small businesses and boost housing affordability by clarifying under the law what constitutes a joint employer. The standard of joint employment was vastly expanded by a 2015 decision issued by the National Labor Relations Board (NLRB) in which it adopted a broad and ambiguous new definition. Under the NLRB's expanded definition of its joint employer standard, a company could be considered a joint employer if it has the "indirect or potential" right to control or co-determine the essential terms of an employee's employment, including hiring and firing, supervision, scheduling, and determining the means and methods of performance. For the residential construction sector, this means builders, specialty trades and other employers could be held liable for the labor and employment practices of third-party vendors, suppliers and contractors over which they have no direct control.  

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  Senate Panel Approves $40.24 Billion HUD Budget for Fiscal 2018  
  The Senate-T-HUD Appropriations Subcommittee today approved $40.24 billion in appropriations for HUD for fiscal 2018, which starts Oct. 1. This is an increase of $1.4 billion above the current level. Of particular interest to the multifamily developers, the Senate appropriations package provides $21.37 billion for Section 8 Tenant Based Rental Assistance, $1.07 billion above the fiscal 2017 level. The Senate spending measure allocates $11.5 billion for Section 8 Project-Based Rental Assistance, an increase from $10.82 billion for the current fiscal year and $42 million above the House proposal of $11.08 billion.

NAHB will continue to work with Congress to ensure these vital housing programs are funded at the appropriate levels to fully fund Section 8 contracts and grant programs to best serve low- to moderate-income communities.
 

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  Increased Softwood Lumber Creates Competition among Countries  
  The softwood lumber trade dispute between the U.S. and Canada has sent prices significantly higher in the first seven months of 2017. The Random Lengths Composite Price-a weighted-average measure consisting of multiple species and dimensions of softwood lumber products-increased 14% over just three weeks in February. Certain framing lumber remains 40% more expensive than it was seven months ago. While Canada is historically our largest foreign source of framing lumber, the U.S. imports softwood from more 50 countries. Though Canada supplies the largest share, as prices increase, so too does the financial incentive for companies in other countries to export their products to the United States. The table below shows the top ten foreign sources of softwood lumber in 2017, year-to-date.
 

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  Articles of Interest:  
  Almost 80,000 Starts Last Year were Tear-Downs
Higher Loan Limits a Catalyst for Home Sales
 

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