Parade Judging! Want to Have Some Fun Checking out Great Ideas?
The Legislative Session Should End Next Week
Work is still underway at the Statehouse as everyone tries to finish up their priorities and end the session on a positive note for election purposes. There has been a flurry of activity as Governor Branstad signed quite a few new laws into play. We are continuing to pay close attention to how this final portion shakes out – we wouldn’t want anything to pass just because it was attached to another bill that may or may not be related. Here are the items of interest that may affect you:
HSB 646 Homestead property tax credit; passed sub, support 3/7
HF 2094 Statute of repose/HSB 504; 2/27 passed House; sub 3/5
HF 2108 Property tax assessment/HSB 508; 2/12 passed House
HF 2129 Cap gains ex for sale of stock, sm bus/HSB 502; 3/4 passed sub; support 3/7
HF 2230 Vehicle permits/const permits on ag land/HF 2059;
2/25 passed House; 3/26 passed Senate
HF 2317 Veterans homeownership fund/HSB 617; support 2/26
HF 2321 Commercial property tax
HF 2344 Drainage/levee districts/HF 460 3/31 sent to Gov
HF 2408 Excavator notification requirements/HSB 518; 3/26 signed by Gov; against 2/26
HF 2411 St/local govt powers/eminent domain/HF 289
HF 2452 First time homebuyer tax credit/HF 2353/HSB 638; 3/26 passed House
HF 2453 Historic preservation tax credit/HF 2415/HSB 624; 3/26 passed House;
SSB 3142 and SF 2281
HF 2448 Econ dvlp/jobs prgm/housing tax incentives; 3/26 passed House
HSB 542/HF 2305
SSB 3205 Homebuyer sav acct/HSB 638/HF 2353/HF 2452 3/18 sub
SSB 3214 Wages paid by debit card; 4/3 sub
SSB 3215 Approps for rebuild IA infrastructure fund
SF 366 Radon testing/mitigation in schools/SF 49; passed Senate 2013; against 2013; 3/18 passed House with amend: S-5084; back to Senate for floor vote
SF 431 Solar income tax credit; passed Senate 2013
SF 2017 Tax exemption wetlands
SF 2034 Tornado resistance infrast prgm/HF 2100
SF 2085 Real property enhancement/HF 2057
SF 2091 co-ownership/SSB 3082 3/31 sent to Gov
SF 2191 financing work drainage districts/SF 2055; 3/26 signed by Gov
SF 2242 Vets home ownership assistance/SSB 3178; 3/3 passed Senate; support 3/7
SF 2256 Redevelopment tax credits/SSB 3050
SF 2265 Vehicle regist/levee/SSB 3140/HSB 605/HF 2273
SF 2273 Trustees of ag land in dranage districts/SSB 3172; 3/31 sent to Gov
SF 2317 Job training/apprenticeship prgms
SF 2335 Business tax credit/corp income tax
SF 2339 Redevelopment tax credits/SSB 3050/SF 2256; 3/26 passed Senate;
HSB/HF 2415/HF 2453; 4/1 passed House
SF 2340 Solar income tax credit/SSB 3201; 3/27 passed Senate
SF 2343 Renewable energy tax credit/SF 2032; 3/27 passed Senate
Builder Confidence Solid – Hopefully That is Your Feeling Too…
It’s awesome to hear in the media that the market is up significantly because of home building reports from our federation – that was the case last Tuesday, April 15. Builder confidence in the market for newly built, single-family homes rose one point to 47 in April from a downwardly revised March reading of 46 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
Derived from a monthly survey that NAHB has been conducting for 30 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.
The HMI index gauging current sales conditions in April held steady at 51 while the component gauging traffic of prospective buyers was also unchanged at 32. The component measuring expectations for future sales rose four points to 57.
First Quarter Rebate Forms Available
It’s just crazy that more of our members do not take advantage of one of the easiest and best programs that we offer – so that there’s no confusion, it’s not related to the NAHB benefit package. Looking through our Iowa list of participants, over $126k dollars have been rebated back on products that you are probably using. The average rebate per Builder or Remodeler for 2013 was $915.23. We have several Iowa members who collected over $3k in 2013, and they weren’t huge builders. This is a great program that potentially pays for your membership dues many times over. For more information, click here. To obtain and fill out your quarterly form, click here.
Iowa Economy Draws More Out-of-Staters
Iowa has traditionally possessed one of the highest rates of native born people in the country, but the homegrown population is on its first sustained decline since 1980. And that’s probably good news. Just 71 percent of Iowans were born in Iowa, according to new census data. That’s the lowest percentage in over 20 years-when it stood at 78 percent.
The native-born percentage within counties is closely tied with the size and employment prospects of those counties. Polk, Linn, Johnson, Scott and Pottawattamie Counties all had lower percentages-hovering in the high 60s-than the state’s average and have experienced larger job growth in past 20 years. The same trend is seen nationally: Cook County (Chicago), Los Angeles County (Los Angeles), Alameda County (San Francisco), Clark County (Las Vegas), El Paso County (Denver) and a smattering of counties around Washington D.C. have native-born percentages that barely reach above 40. Rural counties across the country have percentages approximating Iowa’s, often pegged at around 90.
Even though Iowa moved up the ranks, it still sits at sixth for homegrown residents behind Louisiana (79 percent), Michigan (77 percent), Ohio (75 percent), Pennsylvania (74 percent) and Mississippi (72 percent). The national, county-based map shows lower percentages in the western U.S. than the east-suggesting more Western migration than the other way around. (It could, of course, also suggest that mothers in those counties preferred to give birth across state lines.)
Polk County saw a net domestic in-migration of 2,838 people, according to the one-year estimates for 2012. Linn County, which has overall population growth largely due to birth rates, saw a net domestic out-migration of 440 people.
Iowa benefited from a slight net population growth of 15,377 people, according to the 2012 estimate, and experienced a net gain of workers from outside the state in 2013. The data suggests that at least part of the migration is attributable to international populations migrating into the state. The one-year Census estimate shows that international migrants outpaced those from within the U.S. by sevenfold: 4,143 to 671.
Flood Insurance Legislation: Over $1 Billion in Savings
We told you previously about the Homeowner Flood Insurance Affordability Act of 2014, recently enacted legislation championed by our Federation that will provide a significant boost to home building and remodeling as well as certainty and financial stability to the National Flood Insurance Program.
The numbers are in on the legislation, and NAHB’s experts estimate that in 2014, the new law will result in a total of more than $1 billion of housing market activity, including:
- $755 million in new home construction because the new law makes it easier for prospective new home buyers to sell their existing home and trade up.
- $361 million in additional remodeling activity because the legislation eliminates insurance costs that some home owners would have been required to pay on certain remodeling jobs.
The recently enacted legislation provides a more affordable rate structure for policyholders and repeals the requirement that flood insurance premiums increase immediately to full actuarial rates when homes are sold. It also restores “grandfathering” for properties that were paying premiums applicable to their initial flood risk rating, allowing owners to pay premiums based on the original risk zone rather than updated flood risk zones.
In addition, the legislation requires the Federal Emergency Management Agency to take local flood control structures into account during the remapping process and provides reimbursement for successful consumer map appeals. It also restores the “substantial improvement threshold” that triggers a higher flood insurance rate to the historic 50 percent of a structure’s fair market value, which is important for many remodelers.