MARCH 2015

CLASSIFIED ADS

ECONOMICS

EDUCATION

ASSOCIATION

NETWORK Check out our Member Events p. 14

HOUSING STARTS Your resource for locally relevant economic data p. 13

EDUCATION Changes to local building inspections p. 13, 14

CALENDAR Stay Current with our Current Events p. 14

SOUTHWEST MONTANA BUILDING INDUSTRY ASSOCIATION

2 DO BUSINESS WITH A MEMBER

CONTENTS NEWSLETTER MARCH 2015

3 PRESIDENT’S LETTER Incoming Chairman Brian Popiel shares his thoughts on current association happenings and relevant industry issues.

4 SPIKE CLUB The true champions of NAHB! Check out our current member spike ranking and see how you stack up with your fellow members!

4 MEMBERSHIP UPDATES View new and renewing members.

13, 14 EDUCATION Information about upcoming education opportunities

11 GRIP SAFETY Get the latest on safety from MBIA Safety Specialists!

17 ECONOMIC NEWS UPDATE Featured articles and information from local, state and national sources.

P. 13

13 HOUSING STARTS See what is happening here in Bozeman!

8, 9 SWMBIA HOME EXPO Southwest Montana’s largest home, garden & lifestyle show—March 21-22

P. 18

More Photos on SWMBIA‘s

Facebook page

Our thanks for our Membership & Special Events Committee Members for planning a

wonderful February 11th ―Mardi Gras‖ dinner at Ferraros.

Our thanks to Bozeman Development Director Wendy Thomas, Public Works Director Craig Woolard and Stormwater Program Coordinator Kyle Mehrens for

attending and keeping us all informed on changes to the program.

Harry Kirschenbaum (Republic Services) and Ben Yanker (Buffalo Restoration)

Committee members Ellen Beck (Buffalo Restoration) & Shyla Syverson (AFLAC) organized a great dinner

Thanks to Blake Silha, Desiree Smith, Blake Seeds & Gina Marshall (US Bank) for helping at

the welcome table

3 DO BUSINESS WITH A MEMBER

PRESIDENT’S LETTER UPDATE

Welcome to March, the month we welcome all to the SWMBIA Home Expo! We are excited to have everyone as our guests at southwest Montana's premier home show. This year, we are bigger and better than ever-and we are proud to showcase the services our members can provide Gallatin county.

While you are here, be sure to check out the Playhouses On Parade; we think you'll be impressed. While you are there, buy a few raffle tickets. The proceeds of this year‘s sales go to support Belgrade High School, Livingston Schools and Monforton School. We will draw winners on Sunday, March 22 at the close of the Expo. At the Southwest Montana Building Industry Association, we strive to make the Gallatin Valley a great place to live, work and play. The 2015 Home Expo is the perfect opportunity to visit with the industry‘s professionals and educate yourself at one of our many educational seminars. Whether you are building, remodeling, or just curious, we think you will leave the Expo with more knowledge than when you entered. Thanks for spending your afternoon with us. Brian Popiel Arete Builders / Resource Site Services 2015 SWMBIA Chairman of the Board

THANK YOU TO OUR HOME EXPO &

PLAYHOUSES ON PARADE COMMITTEE

MEMBERS:

Home Expo Committee Chairperson: Beth Zeman, Security Title Co. Committee: Allan Hathaway, A.S. Hathaway Construction, Inc. Russell Damm, Surfaces, Inc. Gil Silva, American Land Title Co. Katy Reasoner, Opportunity Bank Angie Johnson, Stockman Bank Bridger Nelson, Kenyon Noble Lumber & Hardware, Tammy Zeadow, Montana Marketing Erica Renslow, First Interstate Bank Julie Schumacher, Security Title Co. Jeri Norris, First Security Bank Bill Fiedler, Distinctive Lighting

Playhouses on Parade: Gina Marshall, US Bank,

Mike Hennessy, First Interstate Bank Crystal Fiedler, Distinctive Lighting

Katie Gonsalves, Habitat for Humanity Cherie Albrecht, Pro Builders

BRIAN POPIEL ARETE BUILDERS RESOURCE SITE SERVICES 2015 CHAIRMAN OF THE BOARD

DO BUSINESS WITH A MEMBER 4

SPIKES

CHAMPIONS OF NAHB

Statesmen (500-1000) Tim Dean 529 Spikes

Royal Spike (150-249) Eugene Graf IV 224 Spikes John Miller 207 Spikes Byron Anderson 206 Spikes Dennis Cattin 183 Spikes Clair W. Daines 177 Spikes David Andreassi 159 Spikes Jim Syth 156 Spikes

Red Spike (100-149) Anders Lewendal 147 Spikes Kevin Click 137 Spikes Greg Vidmar 117 Spikes Bill Fiedler 115 Spikes Eric Roset 109 Spikes Eugene Graf III 102 Spikes

Green Spike (50-99)

Chuck Graden 96 Spikes Beth Zeman 95 Spikes David Graham 94 Spikes Rob Evans 92 Spikes J.D. Engle 91 Spikes Richard Smith 89 Spikes Nathan Albrecht 80 Spikes Frank Armknecht 64 Spikes Guy Graham 59 Spikes Steve Armknecht 57 Spikes

Life Spike (25-49)

Ken Vidar 49 Spikes Jon Moullet 47 Spikes Adrian Vaughn 46 Spikes Sally Hickey 40 Spikes Keith Fraser 41 Spikes Ron Hinds 37 Spikes Dean Derby 28 Spikes

Blue Spikes (6-24) Mike Thompson 14 Spikes Jeri Norris 10 Spikes Leif Sundeen 9 Spikes Erica Renslow 7 Spikes Tim Rote 7 Spikes By recruiting, involving and retaining members, SPIKES strengthen and build our Association.

NEW MEMBERS ASSOCIATES: Montana Marketing, Inc. Tammy Zeadow 9 North Davis Helena, MT 59601 406-235-0023 tzeadow@mtmarketing.com www.mtmarketing.com Sponsor: Nathan Albrecht Montana Marketing, Inc. is the largest promotional product firm in Montana, serving the area for over 26 years. Services include: logo imprint on any surface; ideas for thousands of promotional items; apparel imprint including daily wear, construction site wear, safety items; the latest technologies for garment imprints.

Sanctuary Interior Design Sophia Cok 2438 Northview Street Bozeman, MT 59715 406-579-1632 sophia@sanctuary-interiordesign.com www.sanctuary-interiordesign.com Sponsor: Eugen Graf Full service interior design firm located in Bozeman, MT, specializing in residential and commercial interior design. Offering design services for new construction, design consultation and E-décor.

RENEWING MEMBERS BUILDERS: Bridger Peak Construction LLC *Gallatin Center LP Majestic Custom Homes On Site Management, Inc. ASSOCIATES: Advanced Water Solutions Al‘s Big Sky Water Conditioning Black Box Design Bozeman Brick, Block & Tile Here at Bozeman Brick we thrive on giving excellent customer service while meeting our customer’s needs from tools, tile, brick, block, stone & masonry needs. We’re here year round to help keep the building industry pushing forward. Come see our friendly staff & check out this year’s new products. First Interstate Bank High Country Gifts & Engraving *K M Construction Co, Inc. Pella Window & Doors Store Permafloors, Inc. Permafloors is an applicator of USG cementitious underlayments and sound attenuation material. We

provide service for the Northern Rockies Region including Montana, Utah, Wyoming, Eastern Washington, Western North Dakota. One of our newest USG products is called Ultra Armor and it is creating a lot of excitement as it is a finished floor and can have an integral color added. Texteriors Visit our showroom for a complete selection of stone, plaster, stucco and Dryvit for your building project. Wells Fargo Home Mortgage Western Millwork, Inc. *Denotes Issues Fund Donations—Thank you for your support!

NEW MEMBER SPOTLIGHT

Barrick Concrete Floor Polishing

Rod & Carrie Barrick

Rod Barrick is a third generation Bozeman native and has been in the construction business in Bozeman for 28 years. What is concrete floor polishing and why use it? Concrete floor polishing offers easy maintenance, is extremely durable, is cost effective, is a ―GREEN‖ LEED product and increases ambient

lighting by up to 30%. It eliminates the use of harmful VOC‘s and maintenance chemicals. Your custom logo or color design can also be applied to your floor. Barrick Concrete Floor Polishing also offers FLOOR PREP (removal of carpet glue and thin-set, grinding and flattening for hardwood and tile, surface prep for better thin-set adhesion when installing tile over concrete), CONCRETE FLOOR LEVELING (rain-out or just bad pour?, level and/or prep for correctional overlay), INDUSTRIAL FLOORS, GARAGE COATINGS, FLOOR COATINGS, AIRPLANE HANGAR FLOORS. Rod welcomes your questions and would like the opportunity to bid on your next project.

DO BUSINESS WITH A MEMBER 5

Join a committee! There is something that will

interest you!

Call SWMBIA at 585-8181 or visit www.swmbia.org and

volunteer

6 DO BUSINESS WITH A MEMBER

Changes to Water Heaters We hope you'll make sure your builder and remodeler members know that changes are in the works regarding size and installation requirements for many water heaters. These changes are the result of new federal energy-efficiency standards going into effect for those appliances manufactured after April 15. The changes will affect nearly all types of water heaters being produced, but the changes depend on the size of the water heater and what the manufacturer chooses to do. Smaller water heaters of 55 gallons and less, the most commonly used, may see an increase in size – perhaps 1-2 inches taller or wider – to account for the additional insulation necessary to make the higher efficiency. These increased dimensions may require additional installation clearances and may not work for closet installation replacements. However, some manufacturers may choose to adjust the capacity of some of their tanks to make

sure they can still fit where the older models did, even if they hold 2-3 gallons less. The standards will have their biggest impact on the design and installation of gas and electric heaters larger than 55 gallons in capacity – about 10% of the residential water heater market. For these larger units, electric water heaters must use a heat-pump design and gas water heaters will need to be a condensing combustion type to meet the new efficiency requirements. You can read a more detailed explanation at nahb.org/waterheaters, and as NAHB learns more about the changes, the page will be updated. Manufacturers are now beginning to get the word out on impending changes. Your members should contact their sale representatives, suppliers or plumbing subcontractors to discuss the best solution for their projects.

7 STATE LEGISLATIVE UPDATE

Dustin Stewart Executive Director 1717 11th Ave Helena, MT 59601

(406) 442-4479 www.montanabia.com

MBIA UPDATE To update you on our progress during this session is quite a feat. Daily changes make keeping you in the loop a challenge. The following is a reminder of what actions we are working for our membership. Exempt Wells: HB 168 (Rep. Fitzpatrick), which is our "grandfather" clause for subdivisions using exempt wells. It ensures that existing subdivisions and those in process get 10 acre feet of water per lot. HB 168 has passed the

House on a vote of 97-2 and will be heard in the Senate in March. HB 519, which allows future subdivisions to have access to a moderate amount of water was a compromise bill reached with the Farm Bureau and Stockgrowers Associations. HB 519 generated a MASSIVE amount of emails and phone calls from our members around the state. The bill passed the House with 68-32 vote. It is now on to the Senate. You will be called on again to help us pass this very important bill when it is heard in March. As you may remember, a Helena District Court has shut down new subdivision developments that use individual water wells. HB 519 (Rep. Glimm - R, Kalispell) allows future subdivisions to use individual water wells. If it does

not pass, subdivision development will almost entirely shutdown until the legislature meets again in 2017. Please watch your email for Call to Action and help us secure future subdivisions. Please let me know if you have any questions on any legislation. Our off ice phone number is 406-442-4479.

YOUR HOUSING FEDERATION IS WORKING

FOR YOU!

DO BUSINESS WITH A MEMBER 8

.

Bob Risk Chief Building Official City of Bozeman, Building Division PO Box 1230 Bozeman, MT 59771 406-582-2377 www.bozeman.net

DO BUSINESS WITH A MEMBER 10

EDUCATION 11

GRIP SAFETY

MBIA

Fall Protection and Scaffold Setup The March GRIP Safety presentation will combine the review of fall protection and scaffold setup in residential construction to comply with complex federally mandated requirements. Fall protection, or lack of it, continues to be the leading citation writ-ten nationally and in Montana. Scaffold setup violations were the third most cited offense by OSHA in 2014. With OSHA di-rectives to actively pursue fall protection violations in residential construction; good fall protection practices and safe scaffold setup go hand in hand to avoid costly citations. Fall Protection - OSHA has strict fall protection requirements when a person is working more than 6 feet above the ground in residential construction. We will review safe work practices for framing operations, roofing operations, and leading edge work activities. We will focus on items most often overlooked prompting OSHA visitations and citations. Do you have a plan to rescue your employee if they went off an edge and are hanging in a harness? In the event of a fall you need to be able to retrieve the victim in less than 5 minutes? We will take a look at innovative methods for getting workers down quickly and safely. Do your employees have harnesses and do they know how to wear them correctly? Are you aware that fall protection equip-ment expires? We will show your crew a few examples of alter-native fall protection such as reusable guard rails, scaffolds and specialized tie off points. We can all find many excuses why tying off and working from ladders won‘t work, but the alterna-tives could be catastrophic.

Scaffold - Scaffolding has become an indispensible piece of equipment in the residential construction world. It is light, un-complicated, sturdy, and can become a safe work platform that saves us time and money. OSHA has vast regulations on scaf-folding (29 CFR 1926 Subpart L-Scaffolding) making it easy to overlook design and setup aspects required by law. Conse-quently, scaffolding construction deficiencies were the 3

rd most

cited OSHA violation in 2014. Class discussion will cover items often overlooked such as; do you perform and record a daily inspection? Do you use mud sills under the base plates of your scaffold? Do you utilize all of the cross bracing and guard rails necessary? Do you have the proper access systems in place? Are your working levels fully planked with the proper decking? These items commonly cited and much more will be covered in class. This presentation is meant to satisfy OSHA’s scaffold user training requirement. It is an excellent refresher on the scaf-fold standard and will advise all employees on the hazards and proper use of commonly used scaffolding in residential con-struction. Classes are FREE but we do request an RSVP to allow for adequate seating and concessions. Feel free to call us at (406)442-4479 or RSVP online at montanabia.com. Bozeman— Wednesday, March 11th, C‘mon Inn, 6139 East Valley Center Road

APRIL Safety Blitz in Red Lodge:

Tuesday, April 7th Forklift Certification Tuesday April 14th Manlift Certification

Tuesday, April 21st Fall Protection/Scaffold User

Also available by request: Forklift Operator, Excavation/Trenching, Competent Per-son Scaffolding Certification, Powder Actuated Tools, Ae-rial Lift Certification, Hazard Communication (SDS), Back & Lifting Safety, Defensive Driving, and Electrical Safety.

Sean Lawler & Mike Rocchio GRIP Safety Specialists

Call Sean or Mike at (406) 442-4479 or visit www.montanabia.com for

more information.

12 EDUCATION

ADA and FHA: What Builders Need to Know Builders and developers continue to get conflicting information about how to com-ply with the Fair Housing Act (FHA) and Americans with Disabilities Act (ADA) on their projects, especially when it comes to multifamily housing.

A session at the 2015 NAHB Interna-tional Builders‘ Show helped attendees understand the finer points of what can be a myriad of confusing guidance docu-ments and regulations designed to allow renters, owners and their visitors maneu-ver around a property in a wheelchair – and when those accommodations are required.

The first thing to understand, said pre-senter Jeffrey Augello, NAHB Senior Counsel, is that ignorance of the law is not an option. ―If the primary entrance to the building has steps but no accessible ramp, you might as well post a sign that says, ‗persons with disabilities are not allowed.'‖

There are seven basic requirements for accessibility when constructing an apart-ment or condominium building of four or more units. In addition, if that building has an elevator, each unit in the building must also comply. If there‘s no elevator, only the ground-floor units must comply.

An accessible building entrance on an accessible route. Not every door needs to be accessible by wheelchair, but at least one public entrance must be easily accessed.

Accessible common and public use

areas.

Doors that are easily operable by a person sitting in a wheelchair.

An accessible route into and through the dwelling unit: in other words, hallways wide enough to accommo-date a wheelchair.

Light switches, electrical outlets, ther-mostats and other environmental controlsthat can be operated from a wheelchair.

Reinforced bathroom walls so that grab bars can be installed later, if necessary.

Bathrooms and kitchens that allow a wheelchair user to be able to move around and access the fixtures.

What if limited space or zoning require-ments affect how accommodating your design can be? ―When in doubt, err on the side of accessibility,‖ said presenter Felicia Watson, NAHB Senior Counsel.

And don‘t necessarily take the word of code officials or city inspectors who say that you don‘t need to worry about acces-sibility because of the size or layout of your structure. The builder is ultimately responsible no matter what kind of ad-vice or guidance they follow, Augello said.

There are, however, recognized safe har-bors, including various iterations of the International Building Code. It‘s impor-tant to be consistent throughout the pro-ject, however: It doesn‘t work to follow the FHA Design Manual for the kitchen but the FHA Accessibility Guidelines for the bathrooms. Mixing and matching safe harbors is not allowed.

It‘s also important to understand that the FHA may not apply to re-purposed build-ings: a turn-of-the-century schoolhouse converted into loft apartments, for exam-ple. The FHA‘s accessibility requirements only apply to buildings designed and con-structed for ―first occupancy‖ after March 31, 1991.

ADA and Single-Family Homes

While the FHA includes specific require-ments for multifamily housing, single-family home builders don‘t need to make their homes accessible, unless, for in-stance,a model home is also used as a sales office. In that circumstance. the portion of the model home used for the sales office becomes a ―public accommo-dation‖ and is subject to the ADA. That means the sales office must be accessi-ble.

The ADA may also kick in for amenities within a single-family development, in-cluding infrastructure such as parking lots and sidewalks, or if the community swimming pool is open to anyone be-sides residents and their guests.

The bottom line: Understand the require-ments of both FHA and ADA, make sure the contracts you have with designers

and subs are clear and protect your inter-ests, and get to know an attorney familiar with all aspects of the two laws.

MARCH IS NATIONAL DESIGNATION MONTH

Gain a Competitive Edge with a Designation

In today‘s evolving market, it is more im-portant than ever that building-industry professionals maintain their edge. Like any other profession, a changing market can translate into fiercer competition for your business. Earning a designation from NAHB Education can be a great way to distinguish yourself—and your company. This March, resolve to take advantage of National Designation Month and the opportunity to advance your in-dustry knowledge and skills. Having a designation tells clients that you have honed your business skills and have superior training, hands-on experi-ence and in-depth knowledge of your profession. Designation holders can also take advantage of valuable networking opportunities during their enrollment, working closely with expert instructors and other professionals within their field and outside their specific areas of exper-tise. As part of National Designation Month public relations efforts, NAHB educates consumers about the value of selecting a professional with a designa-tion, so your hard work will mean even more when it comes marketing yourself and your business.

During March, builders, remodel-ers and other industry professionals na-tionwide can take advantage of the many special events local HBAs are hosting to encourage continuing education and rec-ognize designation holders across the country.

For more information on NAHB‘s

professional designations, vis it www.nahb.org/designations.

ECONOMICS 13

HOUSING STARTS

ePlan is Here! Electronic Plan Review (ePlan) is a web-based solution that allows plans for Building Permits and Zoning Projects to be submitted electronically, replacing the traditional paper-based review method. ePlan will improve the plan review cycle; reduce costs associated with obtaining building permits and development approvals as well as support green initiatives.

www.bozeman.net

Homeownership Education

The Human Resource Development Council in Bozeman offers free homebuyer education. Home is where it all starts and our goal is to help families get a start with a new home. In our 8 hour comprehensive course, directed by a HUD-Approved Instructor, will help you to better understand the home purchase process. We will discuss all the topics that homeowners need to know and cover all the questions that they didn‘t know that they needed to ask. Some questions to be addressed include: Are you ready to buy a home? How do lenders decide to make loans? How important is a credit score? Just what does debt to income mean? How should one go about shopping for a home? Now that you own a home, how should you go about repairing and improving it? Completion of Homeownership Education may help you qualify for down-payment assistance through HRDC. This is an interest free loan for up to $30,000. Area lenders, Realtors, title companies, insurance agents are encouraged to volunteer to present at our classes.

The course is free and open to everyone. Classes are offered twice a month. Space is limited so pre-registration and a $25 refundable deposit are required to reserve a seat. Contact Deana at 406-585-4882 to inquire about upcoming class dates. Visit thehrdc.org for more information. The Road to Home is sponsored by the Human Resource Develop-ment Council of District IX, Inc. in partnership with the Montana De-partment of Commerce, Montana Homeownership Network, Gallatin County, City of Bozeman, U.S. Department of Housing and Urban Development, area lenders, Local Initiative Support Corporation, and the Neighborhood Reinvestment Corporation.

MEMBER DISCOUNT OF THE MONTH

We‘re pleased to extend to members a pri-

vate offer1 of up to $500 toward the purchase

or lease of most new GM vehicles. NAHB

members who are business owners can now

qualify for up to $1,000 and also add on

incentives from the National Fleet Purchase

Program2 and Business Choice

3 to get the

best value on vehicles that run your business. To get this offer

just visit your local dealer, choose an eligible GM vehicle, and

present your NAHB proof of membership form.How it works:

1. Get your NAHB proof of membership form

at www.nahb.org/gm.

2. Bring form to your GM dealer and mention this private

offer.

3. At time of purchase or lease, present your NAHB proof of

membership.

For private offer details, visit www.nahb.org/gm.

14 RESHAPING & ENRICHING OUR COMMUNITIES

CALENDAR OF EVENTS

March 9-13 Spring Break for MSU & Area Schools March 17 10am Playhouses on Parade Committee Mtg March 17 1pm Affordable Housing Task Force Meeting March 17 4pm Parade of Homes Committee Meeting March 19-20 Home Expo Exhibitor Move-In March 20 5:30pm Home Expo Social, Sponsored by American Land Title Company March 21-22 SWMBIA Home Expo, Sat 9am-6pm, Sun 10-4pm March 22 3:30pm Playhouses on Parade Raffle Ends March 24 4pm Executive Committee Meeting April 1 4:30pm Golf Tournament Committee Meeting April 2 4pm Board of Directors Meeting April 5 Easter April 11 Membership Dinner at Hilton Garden Inn 5:30pm Cocktails, 6:30pm Dinner $30/each April 22 ―Construction Connection‖ Member Social at Surfaces, 1413 Gold Avenue.

All Meetings held at SWMBIA Office unless noted otherwise

More information available at www.swmbia.org or at Southwest Montana Building Industry Association

(SWMBIA) Face Book page

NAHB EDUCATION Live Online Course Schedule for 2015

Another initiative NAHB has tested in order to support members challenged to complete designations they have started, (some many years ago) is in the form of live, online webinars over a few weeks. The courses selected for delivery in this format are mostly CGB/CGR courses not offered enough around the country to help designees that have not been able to find courses locally. Members have told us they would like to see online options to avoid having to travel long distances and many times, out of state. This format has been met with a positive response. The 2015 Live Online Designation Course Schedule is as follows:

Marketing & Sales for Building Professionals April 7, 14, 21, 2015 from 1PM – 3PM EST Estimating for Building Professionals May 5, 12, 19, 2015 from 1PM – 3PM EST Project Management June 9, 16, 23, 2015 from 1PM – 3PM EST

Financial Management November 3, 10, 17, 2015 from 1PM – 3PM EST Advanced Green Building: Project Management December 1, 8, 15, 2015 from 1PM – 3PM EST

Registration for these courses will be up by mid-January at www.nahb.org/elearning.

Please let us know if you have any questions.

We want YOU on the radio!

Each Monday, SWMBIA is on KMMS 1450AM from

7:30m-8am. This is a great opportunity

to briefly share your business and services, your thoughts on issues

facing the industry and much, much more. Call the Office at 585-8181 to be on the radio!

15 DO BUSINESS WITH A MEMBER

ENERGY CONSERVATION SURVEY

Residents of Gallatin and Park county communities,

How do you like to learn?

How do you spend your time?

What is most important to you in home energy con-servation?

Reducing our residential energy use is becoming very important in the Bozeman area and beyond, and these questions are vitally important when de-veloping residential energy conservation and effi-ciency initiatives. Please consider taking MSU Ex-tension's 10-minute survey to help us answer these questions and develop more useful energy conser-vation programs to fit our community‘s unique life-style.

Survey link: https://www.surveymonkey.com/s/

BZNenergyE

Please feel free to pass the link along to friends, family and any interested people living in the Greater Bozeman region. This region hubs around Bozeman and includes communities in Gallatin and Park counties.

Survey link: https://www.surveymonkey.com/s/BZNenergyE

Upon completion of the survey, you have the op-tion to enter into a drawing for a Home Energy Au-dit conducted by staff of the Montana Weatheriza-tion Training Center (Health and Safety Restrictions Apply). If interested, leave your email address at the end of the survey to be entered into the draw-ing!

For questions regarding this study, please contact: Jennifer Grossenbacher, Montana State University, at jenniferg@montana.edu or Jerrod Bley, Montana Weatherization Training Center, at jerrod.bley@montana.edu

16 ASSOCIATION

DO BUSINESS WITH A MEMBER 17

Home Price Growth and Children’s

Education and Earnings

BY ROBERT DIETZ

A recently published paper by economists at the Federal Reserve Bank of Boston demonstrates a link be-tween home price gains – and homeownership in general – and the educational attainment and future earnings of chil-dren. The paper contributes to the broad academic literature demonstrating the positive social and individual impacts of homeownership. Using data from the Panel Study of Income Dynam-ics (PSID), the authors, economists Daniel Cooper and Maria Jose Luengo-Prado, find that when the homeowners‘ children are 17 years-old, a 1 percentage point increase of their parents‘ area house prices yields approximately 0.9% higher average annual earnings later in life and 1.5% lower average annual income for renters‘ children. The research also indicates that home price growth when children are aged 17 increases higher educa-tion enrollment rates at age 19. The empirical test used data constructed from the PSID. Individuals‘ income data running through 2007 were linked to their parents‘ information from when the now-adults were aged 17. The ability to track data over time is a key benefit of panel data like the PSID. This process created a dataset of 892 individuals who had their 17th birthday be-tween 1979 and 1999 and were 25 to 45 years old in 2007. The statistical test controlled for a variety of factors including parents‘ income, education non-housing wealth. The authors also used a number of different house price measures and different ages for the children. The statisti-cal results did not vary substantively given these changes, suggesting the findings are robust. T h e p a p e r ‘ s r e s u l t s i n d i c a t e that homeowning parents are better able to invest in the education of their children. The authors conclude that the statistical findings are consistent with prior research con-cerning the social and private benefits of homeownership (see Robert Dietz and Donald Haurin [Journal of Urban Eco-nomics 2003] for a broad review of homeownership impacts from studies in economics and the other social sciences). The paper does not provide a firm answer on whether the relationship between housing wealth and future college enrollment and higher earnings of children is due to a wealth effect or eased credit constraints for the homeown-ers to access financing for education. However, the authors do note that the majority of homeowners increase housing-related borrowing for the first time as their children approach college age, thereby suggesting that the home price effect is related to eased borrowing conditions, which enables more investment in their children‘s education.

Apex Group, Inc. 20 Big Sky Insulations 7 First Interstate Bank 19 First Security Bank 18 First West Insurance 18 Knife River 5 Little Stinkers Septic & Portable Toilets 10, 16 Stockman Bank 14 TMC, Inc. Sand & Gravel 15 Tractor & Equipment Co. “The Cat Rental Store” 6

QUESTIONS ABOUT THIS PUBLICATION? (406) 585-8181 ♦ www.swmbia.org

EXECUTIVE COMMITTEE 2015

Chairperson / President Brian Popiel, Arete Bldrs/Resource Site Svcs First Vice Chair Andy Rowe, Alpenglow Custom Builders Second Vice Chair Darryl Seymour, Montana Title & Escrow Associate Vice Chair Mike Thompson, Kenyon Noble Lumber Treasurer Tylene Vitt, Rudd & Company Past Chairman Nathan Albrecht, Pro Builders

2015 BOARD OF DIRECTORS BUILDER BOARD MEMBERS 2 Year Term 2015 Dan Barnes 2 Year Term 2015 Andrew Mazzella 2 Year Term 2015 Adrian Vaughn 2 Year Term 2016 Rob Evans 2 Year Term 2016 David Graham 2 Year Term 2016 Bryan Morrison ASSOCIATE BOARD MEMBERS 2 Year Term 2015 Bill Schwahn 2 Year Term 2015 Jeri Norris 2 Year Term 2015 Beth Zeman LIFE DIRECTORS Gene Graf, Clair Daines, Tim Dean, Jim Syth, Frank Armknecht, Richard Smith, Byron Anderson

STATE DIRECTORS 2015 ELECTED Nathan Albrecht, Brian Popiel, Bill Fiedler, Adrian Vaughn, Mike Jarrett ALTERNATES LIFE DIRECTORS Frank Armknecht, Tim Dean, Gene Graf, Richard Smith, Byron Anderson

NATIONAL DIRECTORS 2015 ELECTED Brian Popiel, Bill Fiedler ALTERNATE Mike Thompson LIFE DIRECTORS Tim Dean, Frank Armknecht, Jim Syth, Richard Smith, Byron Anderson SENIOR LIFE DIRETORS Clair Daines, Gene Graf

COMMITTEE CHAIRS 2015 Golf Tournament Committee Chair Adrian Vaughn Government Affairs Committee Chair David Graham Government Affairs C.I.T.F. Eugene Graf IV Green Building Committee Chair Jeff Moore Home Expo Committee Chair Beth Zeman Parade of Homes Committee Chair Darryl Seymour Membership Committee Chairs Leif Sundeen, Brett Baragar

ADVERTISER’S INDEX

18 DO BUSINESS WITH A MEMBER

24th Parade of Homes September 12, 13, 18, 19, 20,

2015 “The Best of What’s New!”

Southwest Montana Building Industry Association

1716 West Main Street Suite 8-G Bozeman MT 59715

www.swmbia.org

PRSRT-STD

U.S. POSTAGE PAID

BOZEMAN MT 5 59715

Permit #9

Friday, March 20th

“Construction Connection”

Social 5:30pm-7:30pm Brick Breeden Fieldhouse Come kick off the SWMBIA Home

Expo Sponsored by

Wednesday, April 15th

Membership Mtg & Dinner

Hilton Garden Inn 2023 Commerce Way, Bozeman

5:30pm Cocktails 6:30pm Dinner

$30/each RSVP Please 585-8181

Wednesday, April 22nd

“Construction Connection”

Social at Surfaces

1413 Gold Avenue, Bozeman

5:30pm-7:30pm Come join the fun at this

free social!