Weekly Update: October 12, 2017

HBA Iowa Des Moines rezoning   

  The room was packed last week for a proposal from the City of Des Moines on zoning.  Will it potentially have an impact on you in your community?  We do not know, so that’s why we try to keep up on proposals all over the state.  If you want an interesting read, check out the issues that the DM Developers Council has put together here.  A letter from the HBA of Greater Des Moines is here.

NAHB Tax Reform Policy Changes

NAHB unanimously voted to revise its policy regarding the nation’s tax code in light of recent discussions on tax reform between congressional leadership and the Trump administration.  The NAHB Executive Board decision provides greater flexibility as the tax debate unfolds and stakeholders seek consensus to shape a tax code that best serves the nation’s consumers and small businesses.

“This is the first time in NAHB’s 75-year history that we have been open to the idea of broader options regarding housing tax incentives,” said NAHB Chairman Granger MacDonald. “Now is the time to reform tax policy and housing will not be left behind in this process.”

NAHB supports a tax system that is simple and fair, and that promotes greater housing opportunity for Americans across the economic spectrum.  The tax policies that NAHB is promoting include:

  • A homeownership tax incentive;
  • The low-income housing tax credit, along with additional resources to meet the affordability crisis;
  • Tax incentives for remodeling, including energy efficiency tax credits;
  • The exclusion of capital gains on the sale of a principal residence; and
  • Business interest deductions for small businesses.

“Tax policy is key to homeownership, affordable rental housing, business success and job creation,” MacDonald said. “That’s why NAHB will be fully engaged in this debate and pushing for innovative solutions that bring a better policy environment for American enterprise and lasting prosperity for our nation’s people.”  For more information, visit nahb.org/taxreform.

Treasury Withdraws Regs that Would Hinder Home Building

Big wins for reducing unnecessary roadblocks for home builders came out of the U.S. Department of the Treasury late last week, as it announced plans to withdraw two proposed regulations that would be costly and burdensome.

In its announcement, the Treasury said it plans to withdraw proposed regulations under Section 2704 that would have hurt family-owned and operated businesses by limiting valuation discounts. The regulations would have raised taxes on family businesses when an owner passes away and chooses to leave the business to the next generation. The valuation requirements of the proposed regulations were not sensible from an economic standpoint, were unclear and could not be meaningfully applied.

Treasury also plans to withdraw proposed Section 103 regulations on the definition of political subdivision. The proposed regulations would have prohibited most development districts, which are used in many states to finance the construction of sewer systems, water lines and other infrastructure necessary to incorporate a new development into a city, from issuing tax-exempt municipal bonds.

For example, community development districts in Florida, municipal utility districts in Texas, metropolitan districts in Colorado, and rural utility districts in California have been set up to issue tax-exempt bonds to finance public infrastructure for a wide array of development projects. NAHB had urged Treasury to rescind this rule that would have severely limited such districts.

As we reported in July, the Treasury Department had identified eight tax regulations that were considered burdensome, costly and ineffective. These are two regulations from that list. NAHB backed the rescinding of the eight listed burdensome regulations, with particular concerns about the rule that would have restricted eligibility for developments that are deemed “political subdivisions.”

“The withdrawal of these two regulations is a big win for the home building industry,” said J.P. Delmore, AVP of Government Affairs at NAHB. “Home builders benefit in a real way knowing they can pass down their company to a family member without the government blocking their way. And when new development can be financed through development districts – providing a cost effective mechanism to fund the infrastructure needed for new development – it’s a win for the entire community.”

hba iowa charles schneider

   It’s the season for political fundraisers.  We have been represented at events for approximately 14 legislators on both sides of the aisle.  Here is Senator Charles Schneider’s last week at the Stine Barn.  It should be a most interesting session again, somewhat more tame than this past assembly, but with lots of stuff on the list of to dos.  We will be working it and paying attention to everything that comes out.

MidAmerican Notice of Adverse Construction Conditions Charges

Here is a note from HBAI Board of Director Member Eric Heikes to developers, homebuilders, and contractors on behalf of MidAmerican Energy:

MidAmerican Energy Company’s base installation costs for electric and gas facilities assume installation under normal weather, soil, and site conditions. If installation is required under adverse conditions, additional charges will be applied. Adverse construction conditions include snow, freezing rain, ground frost, extreme cold, or unusually muddy or rugged terrain. These adverse conditions are most prevalent between November 15 and March 15.     Projects that are ready for construction by October 31, 2017 will be completed without adverse construction conditions charges.  All projects that are ready after October 31st may be subject to additional charges based on existing conditions at the time of installation.

The following conditions must be met for your project to be considered ready for MidAmerican Energy to schedule installation of electric and/or gas facilities:

  • MidAmerican Energy has received a signed Gas/Electric Service Facility Service Application Agreement and/or a signed extension contract and any required payments.
  • Customer has met all the requirements on the extension contract for extensions.
  • Customer has met all the requirements for site readiness noted on the back (or second page) of the Gas/Electric Facility Service Application Agreement.
  • All applicable permits or inspections have been approved and released by the appropriate parties.

If you have any additional questions regarding these adverse construction conditions charges, please contact your local MidAmerican Energy representative or dial 888-427-5632.

hba iowa homes with porches

   This is an interesting pictogram showing the number of new homes with porches.  There are lots of interesting demographics available on our industry.

Iowa Skilled Trades Limited Edition Shirt

This is a limited edition (150) Iowa Skilled Trades shirt just like you saw at the Iowa Skilled Trades event. Just like the event, all proceeds will go to Skilled Trades scholarships throughout the State of Iowa.  Shirt sizes run big and will not shrink.  Click here to claim yours today.

Weekly Update: October 5, 2017

   In this photo we have a portion of the students from all across Iowa up on the stage following the event.  How cool is that?  We had over 400 educators and students in attendance.

Amazing Iowa Skilled Trades Night with Mike Rowe

The nearly 1,600 participants in our Iowa Skilled Trades night with Mike Rowe last Thursday will tell you – it was amazing! The energy in the room, the message, and the unity demonstrated as stakeholders came together was really special.  Adam Carroll did a great job emceeing the event, Governor Reynolds was spot on with her message, and of course Mike Rowe delivered as expected.  This newsletter will be dedicated to the event, we could not have asked for a better night.  Here is a nice article in BUILD Des Moines that encapsulates the evening very well. Here is a good WHO interview with Simon Conway.  And finally, here is a fresh article from the Des Moines Register from this morning.

   We donated 10% of the net proceeds to the mikeroweWORKS Foundation.  In the center is Brandon Patterson (RE/MAX), who’s vision and tenacity made this event possible.  On the right is our emcee and rock solid messenger Adam Carroll.

Iowa Skilled Trades Limited Edition Shirt

This is a limited edition (150) Iowa Skilled Trades shirt just like you saw at the Iowa Skilled Trades event. Just like the event, all proceeds will go to Skilled Trades scholarships throughout the State of Iowa.  Shirt sizes run big and will not shrink.  Click here to claim yours today.

Door Prizes at Event

We had lots of fun handing out nearly $5,000 in door prizes to the students.  Thanks to G&L Clothing (3 x $300 spending sprees); Acme (over $400 in tools); Windsor Windows (10x multi-tools); Beiser Lumber (Hilti Sawzall, Quick Saw, Hilti tool bags; Barnum Floors ($50 Home Depot); Milwaukee Tools (Drill Kit); Kreg Tool (full carpentry jig kit); Lumberman’s Supply (2x $50 Lowes); Bradley Tools (Cordless Drill Kit); Ferguson (tool bucket full of tools); and Brandon Patterson, RE/MAX Concepts, (Milwaukee 4 tool set).

Event Sponsors
We could not have been able to put this together if it wasn’t for our event sponsors.  The generosity exhibited was incredible and we’re making a huge leap forward on bringing this critical problem to the forefront.  Thanks to the following:
HBA of Iowa
Plumbing Heating Cooling Contractors of Iowa

Master Builders of Iowa

Iowa Workforce Development

Iowa Department of Economic Development
Beisser Lumber
Missouri Valley JATC Line Constructors
Walter Lauridsen
Liebl Marketing Group
Carpenters Union Local 106
Windsor Windows
Whirlpool
McAninch
Plumbers & Pipefitters Local 125
Pella Corp
Turner Construction/FaceBook
Kirkwood Community College
Iowa Department of Education
John Deere Works
University of Iowa Community Credit Union
Seneca Companies
Murphy Tower Service
Milwaukee Tools
JamesHardie

Table Sponsors

Thanks to the following members, companies, associations, schools, municipalities, and individuals who purchased tables.  Some of them purchased multiple tables and several dontated the entire table to our target audience members.  Because of their generosity, we were able to invite over 400 educators and students as guests.

ABC of Iowa; AGC of Iowa; Alburnett High School; Alliance Construction Group LLC; Ames HBA; Anura Energy; Beal Development Corp.; Beisser Lumber Co.; Berkshire Hathaway Home Services First Realty; BHHS First Realty / The Westergaard Group; BirdDog HR; Black Hills Energy; Carhartt / G & L Clothing; Carl A Nelson & Company; Cedar Rapids HBA; Cedar Valley HBA; Central Campus; Central Iowa Building & Construction Trades Council; Central Iowa Steel Erectors Association; City of Norwalk / Norwalk Community Schools; City of West Des Moines; Clarity Construction; Climax Molybdenum Company; Coldwell Banker Mid-America Group, REALTORS©; Community State Bank/QCRH, Inc.; Contractor Services of Iowa; Correll Contractor Inc.; CTI Ready Mix LLC; Iowa Department of Education; DMARR; DMACC; DRA Properties; Emerson; Engineered Building Design, L.C.; Fairway Independent Mortgage; Ferguson Enterprises / Factory Direct Appliance; Fleming Construction LLC; GAF; Gannon Roofing Supply; Gilcrest/Jewett Lumber Co.; Gratias Homes LLC; Grayhawk Homes of Iowa; Greater Burlington Partnership; Greater Des Moines Partnership; Ground Breaker Homes; GTG Construction; HBA of Greater Siouxland; HBA of Iowa City; Heartland Companies; Hildreth Brothers Construction; Hills Bank & Trust Company; Home Repair Team, Inc.; Hubbell Realty Co.; Huber Grading & Land Development; Indian Hills Community College; Infinity Drain; Installation Services Corp.; International Brotherhood of Electrical Workers, Local 347; Interstates Construction; Iowa Association of Building Officials; Iowa Economic Development; Iowa Ready Mix Concrete Association; HBA of Greater Des Moines; Iowa State Building Trades Council; Jerry’s Homes; Johnson Construction and ASI; Kaufman Construction; Kimberley Development Corp.; Kingland Construction Services; Kirkwood Community College; Kline Electric; Kreg Tool Company; KRM Development; Kuder Inc.; Landmark Development Services, Inc.; Leachman Lumber Co.; Lee County Economic Development; Liberty National; Liebl Marketing; Linn Mar High School; LP Building Products; Lumbermans Drywall & Roofing Supply; Master Builders of Iowa; McAninch Corp.; McCreedy Ruth Construction, LLC; Meadowbrook Builders, LLC; Mechanical Contractors Association of Iowa; Merchants Bonding Company Foundation; Metro Heating & Cooling; MidAmerican Energy; Midwest Computer Register Corp.; Missouri Valley Line Constructors Apprenticeship & Training; Murphy Tower Service; Newblood Development; North Central States Regional Council of Carpenters; Plum Building Systems LLC; Plumbers & Pipe Fitters Local 125; Plumbing-Heating-Cooling Contractors Assoc.; Prairie High School; Prairie Pella, Inc.; Premier Development; Quad Cities Builders & Remodelers; R & R Realty; RE/MAX Real Estate Concepts; REMODELWORKS! Design/Build Contractor; Sauer Danfoss; Techno Metal Post; Turner Construction/FaceBook; UICCU – University of Iowa Community Credit Union; Vista Real Estate; Wausau Supply Company; West Des Moines Community School District; WestBank; Whirlpool Corporation; Windsor Windows & Doors; Woodruff Construction, LLC; and Wyckoff Heating & Cooling.

   The staff of the HBA of Greater Des Moines truly made the event a giant success – they poured themselves into every component of this huge undertaking.  From left to right, Laura Ransdell (Governance and Publications); Dan Knoup (Executive Officer); Jessica Verwers (Membership and Association Services); Mike Rowe; and Melisa Cox (Partnership and Publications).  Thanks!  
 
   Another round of thanks goes out to our local HBA’s around the state that stepped up to the plate – arranging buses, coordinating teachers and students, reaching out to local media, and helping to sell tables.  The list is individuals and companies is long – sorry if we missed anyone, but know that all efforts were very much appreciated.  This is just the beginning!