SEPTEMBER 2013

Building InsightTHE MAGAZINE OF THE BUILDING INDUSTRY ASSOCIATION OF WASHINGTON

www.BIAW.com

SEE PAGE 5

September 2013

Building InsightTHE MAGAZINE OF THE BUILDING INDUSTRY ASSOCIATION OF WASHINGTON

www.BIAW.com

MEMBERSHIP MADNESS

Fall focus on recruiting, retention and involvement

2 Building Insight      •      SEPTEMBER 2013

Features

Get a Free, No-Obligation Health Care QuoteIf you’re not currently participating in the BIAW Health Insurance Program, call EPK & Associates at 800-545-7011, ext. 6. Subscribers regularly take advantage of 10 to 15 percent premium discounts. Don’t wait, call today.

HealtH Caretip of the MonthFive ways to cut yourhealth care costs

HEALTH CARE REFORM QUICK FACTS: WHAT IT MEANS TO YOU

What are “exchanges” or “marketplaces”?

BIAW Web

Current Insurer:

Trust / Program:

Renewal Date:

How long have you been with your Current Insurer?

Nature of Business:

YesNo

If yes, please specify :

Membership ID#

Member Since:

1.

2.

Date of Birth M/F

Total # of

Children

Waiving

Coverage Y/N?

Reason for

waiving

coverage Zip Code

3.

4.

5. Risk Appraisal - Attached

6.Claims information - If available

Please attach additional census, if necessary

Health Insurance

Quote Request Form

Thank you for your interest in our Program.

In order to obtain a quote, our carriers require all sections of this form be completed.

1 Company Information:

Please let us know how you heard about you heard about us

Company Name:

Contact Person:

Address:

City, State, Zip:Are you a member of a trade(s) association in Washington?

Phone:

Fax:

Email:

I authorize the Trust Consultants (Capital Benefit Services, Inc.) to provide our company with a proposal for the Trust.

Authorized Representative:

Date:

2 Please make sure to include the following information:

Billing Statement - Please provide your

most recent billing statement.

Census - Please include all full-time, active, eligible employees.

Dependent Coverage

(Spouse / Child(ren))

Current Benefits - Please provide

information on your current employee

benefits (medical, dental, vision, life,

etc.)

Please send completed forms to:

Capital Benefit Services, Inc.

Renewal Information - If applicable,

please provide your renewal rates for

the upcoming plan year.

15375 SE 30th Place, Suite 380, Bellevue, WA 98007

Phone: (800) 545-7011 ext. 6 / Fax: (425) 643-6728

sales@epkbenefits.com / www.capitalbenefitservices.com

We look forward to serving your company's benefit needs

Health Care Tip of the Month is brought to you by the BIaW Health Insurance Program.

Under the Affordable Care Act by January 1, 2014, states must be operating a health insurance “ex-

change” or implementation will fall to the federal government. These exchanges will serve as a marketplace for individuals to purchase health insurance.

In 2011, the Wash-ington State legisla-ture voted to establish a health insurance ex-change.

Washingtonians will be able to shop, compare and purchase health insurance begin-ning October 1, 2013.

These new online exchanges are geared towards:n Individuals who do not have access to

employer sponsored health insurance;n Spouses and/or dependents who are

currently not covered by any health insur-ance plan.

The exchanges are a new concept and may pose a bit of a challenge for those un-

familiar with purchasing health insurance on their own.

For BIAW members, the BIAW Health Insurance Program administrators—EPK & Associates—will help guide you and as-sist in answering questions or concerns that you or your employees may have. EPK will

also be able to help those interested in utilizing the exchanges find a policy that works within their budget.

As the landscape of healthcare continues to change, the BIAW Health Insurance Pro-gram remains vigilant in keeping you up-to-date with the latest informa-tion and providing your

company with excellent health insurance benefits.

For questions, please contact EPK Di-rector of Marketing Will Compton at 800-545-7011 ext. 1237; by email at wcomp-ton@epkbenefits.com; or online at www.EPKBenefits.com.

The BIAW Health Insurance Program provides outstanding benefits and when you know how to make the most of them, you can lower costs for yourself and your family. Here are five tips to help reduce your health care costs.

Choose Network Providers Choose providers—doctors, specialists, hospitals, lab and test facilities in your health plan’s network. Your plan pays less if you use a non-network provider and you’ll pay more. You’ll receive the highest benefit coverage when you choose and use a Preferred or Partici-pating Provider (Preferred or HSA).

Choose Generic DrugsGeneric drugs are lower-cost drugs that must meet the same FDA standards as brand name drugs. Ask your doctor if there is a generic option. You’ll save money because you always pay the low-est copay for generic prescriptions.

Use a Mail Order PharmacyPurchase long-term or maintenance medications that you take regularly by mail. You’ll enjoy free standard shipping, convenient home delivery and easy re-fills. You may save money because one copay or coinsurance covers up to a 90-day supply. Visit www.regencerX.com to sign up.

Preventive Care BenefitsYour health plan covers many preven-tive care services such as routine ex-ams and tests, immunizations, women’s annual exams and mammograms. Your plan covers 100% of routine preventive care—and as long as you choose a pro-vider in the Preferred Network, there’s no copay.

Be Informed about Health topicsWhen you’re well informed, you’ll be prepared to make smart, cost-effective health care decisions. Take advantage of the free resources available to help you improve and maintain your health by visiting www.Myregence.com.

SEPTEMBER 2013

Building Insight 5 Membership Madness continues in September and October Find out how you can grow your local association and help earn cash by recruiting new members

Who We Are The Building Industry Association of Washing-ton is the state’s largest trade association and represents over 8,000 member companies in the home building industry. Known as the “Champi-ons of Affordable Housing,” BIAW is dedicated to ensuring and enhancing the vitality of the building industry for the benefit of its members and the housing needs of citizens.

On the Cover

Features

Insights

2 Health Care reform—what it means to you An explantion of health insurance “exchanges” or “marketplaces” 8-9 BIaW’s legal victories help members BIAW’s legal team at work for you at the Court of Appeals and Washington Supreme Court

12 September is associate Member appreciation Month BIAW honors Associate Members, an integral part of BIAW and their local communities

4 President’s Perspective 2013 BIaW President audrey Borders Spike it to ya! Recruit to build a stronger industry

6 executive Vice President’s Viewpoint BIaW executive Vice President art Castle It’s a seller’s market, but where are the lots

7 Government affairs angle Primary election recap; big races in play 11 Building Permit Update June 2013 permit numbers

THE MAGAZINE OF THE BUILDING INDUSTRY ASSOCIATION OF WASHINGTON

2013 BIAW SENIOR OFFICERS President .......................... Audrey BordersFirst Vice President .............. Bob JohnsonSecond Vice President ..............Bob KagyTreasurer ............................... Monty SmithSecretary ...............................Kevin KartakImm. Past President .............Kevin Patrick

BIAW StaffExecutive Vice President ...........................Art Castle

Administrative Services Director .............Jan rohila

R.O.I.I.® Select Program Manager...... Frank romero

Government Affairs Director ............Jan himebaugh

Building Insight questions or comments, contact: Communications and

Public Relations Director ........................ FaLeana Wech(360)352-7800, ext. 152 .............. faleanaw@biaw.com

SEPTEMBER 2013 •    Building Insight 3

4 Building Insight      •      SEPTEMBER 2013

President’s PerspectiveAudrey Borders360-739-7295msqlty@aol.com

Insights

CREATING STRENGTH THROUGH NUMBERS

Spike it to ya! Recruit to build a stronger industryMembership, membership, mem-

bership! As we head into Sep-tember and October, you’ll

likely hear a lot about the importance of membership. The National Association of Home Builders (NAHB) annual Member-ship Madness happens in May, but this year also includes the months of Septem-ber and October. Local associations pick one of the two months in which to partic-ipate and compete with other associations in their size category in recruiting compe-titions. The winning local as-sociations earn cash prizes and Spikes can earn double or even triple Spike credits. *BIAW will also award the top two performing local associations with substan-tial cash prizes. See page 7 for full details on both the BIAW and NAHB incentive programs.

Membership Madness is a great oppor-tunity to focus on building a stronger as-sociation and, consequently, a stronger in-dustry.

BIaW’s Business is its MembersBIAW exists to serve members’ busi-

nesses, support their livelihoods and help build a better future for homebuild-ing in one of the most regulated states in the nation. Your local association mem-bership—tripled with the inclusion of the state and national affiliations—is a significant resource and advocate to pre-serve and protect the American Dream of homeownership.

Spikes are the FoundationOur strength, however, lies in our

numbers. The bigger and stronger a team we can rally, the more good work your association can accomplish on be-half of our industry. This is where you all can step in and make a big difference.

Member-to-member recruitment and retention is so important because of the grassroots growth and stability it brings to every level of the association. In case you didn’t know, some of our most dedi-

cated recruiters are called Spikes—an elite group of BIAW members recog-nized for their achieve-ment in membership re-cruitment and retention. These members under-stand the value, influ-ence and the possibility

of a bigger, stronger and more powerful BIAW—not just for their own success, but for the success of the industry as a whole. I am so thankful for their tireless work and dedication.

recognition among PeersSpikes are awarded for their effort by

inclusion into the elite Spike Club where they receive recognition at the local, state and national levels. They also get a great return on their investment by tak-ing advantage of networking and leader-ship opportunities, increased visibility among peers and fun opportunities to be honored for their service.

Spike status can be achieved by earn-

ing six Spike credits in two membership years. Members earn one Spike credit by recruiting a new member and earn ad-ditional credits for retaining the mem-bers they recruit. They are many tiers of membership—including Life Spike, which is achieved after a member has earned 25 Spike credits.

Help Grow BIaWTo those of you who are already

Spikes, I thank you. Your effort, care and service are invaluable. There is still, however, much work to be done to grow membership and expand our influ-ence. I would like to challenge all of you to consider making Spikedom a goal—I promise it will increase your own mem-bership value. At the very least, make a commitment to recruit one new member before the end of 2013. If each one of our nearly 8,000 members made this effort, the outcome and momentum would be astounding.

Membership recruitment begins at the local level. I encourage you to con-nect with your local association to see how you can plug into their recruit-ing efforts. If you’re looking for ways to build your professional network and reputation, give back to your association and be a part of improving our industry, membership recruiting is a great place to start.

associate Members rule SeptemberSeptember is not just a month for

Spikes! It is Associate Member Apprecia-tion Month and I am very thankful for our Associate members. These members con-

tribute in important ways to our association—they are a major component of our membership, bringing in dues revenue and sponsor-ships, and many are very ac-

tive, dedicating their time and energy to the association.

I encourage association staff and Build-er members to always consider doing busi-ness with an Associate member. Next time you run into an Associate member, take a second to acknowledge their valuable con-tribution to our industry.

We are all valuable players on a pow-erful team, let’s go the extra mile to build a competitive playing field for our industry.

SEPTEMBER 2013 •    Building Insight 5

MEMBERS RECRUITING MEMBERS

Membership Madness continues in the fall

Cover Story BIAW Top Ten Spikes New Total SpikeSpike Local Members Credits

Myra Williams .......... MBA-KS ........... 43 ..........541.25Baskets by Myra

Patrick Hayes .......... MBA-KS ........... 28 ..........436.50Superior Slabjacking

Paul McGraw .....BIA of Clark County ... 20 ..............82.0Spacemaster Construction and Remodeling

Kevin Kartak ............ MBA-KS .......... 18 .......1,362.25AAA Kartak Glass & Closet

Beth Madden ........... MBA-KS ........... 15 ..........837.25Madden Industrial Craftsmen

Leonard Terzenbach ....Spokane HBA ...............14 ..............1,275.25Bell-Anderson Insurance

Terry Gillespie ......San Juan BA ....... 12 ..............58.5Sound Construction

Joseph Leedom ...... MBA-KS ........... 12 ..............20.0Merrill Lynch

Bob Smith ................ MBA-KS ............11 .......1,274.75Advanced Insurance Solutions

Sherry Schwab ........ MBA-KS ............11 .......1,116.50HCS Construction Services

Kurt Wilson .....MBA Pierce County ...11 ..........164.50Sound Built Northwest

AS oF JulY 31, 2013

local associations can choose to par-ticipate in either September or October. It doesn’t matter which month and partici-pants are competing against each other in one prize pool. Locals compete head-to-head against others in their size category.

Winners are determined based upon percentage growth of new Builder and As-sociate members for their chosen month. For example, if your local association chooses to participate in September, the results are based on the percentage of new Builder and Associate members compared to the end of August.

Members of participating locals will be eligible to earn double Spike credits for participating in September or October, or triple Spike credits if they participated in May’s Membership Madness drive in addi-tion to September or October. The top five finishers in each size category will be eli-gible for cash awards.

In addition, one lucky member from a participating local association will win a FREE TRIP to the 2014 International Builders’ Show® in Las Vegas! The prize package includes five nights at the Encore Hotel, economy airfare for 2 people (up to

$1000) and a $100 gift card. Members will receive one entry for each

new Builder or Associate member they re-cruit (after their first one) during the Mem-bership Madness competition.

BIaW Sweetens the Pot!In addition to the great prizes that can

be won through NAHB by participating in Membership Madness, BIAW has an add-ed incentive to participating locals. BIAW will award a $1000 to the first place and $500 to the second place associations with the highest percentage of Builder and As-sociate member increases between August 31 and October 31, 2013.

Questions?If you have any questions about the

NAHB Membership Madness competition, contact your local association staff person or BIAW Administrative Services Director Jan Rohila at 800-228-4229, ext. 101.

Game on! Local associations across the state have elected to participate in September or October with drives to recruit new members. Each participating local will also be recognizing, awarding and honoring those members that get

involved. BIAW has added additional incentives—a $1000 and $500 prize—to encourage our members to get in the game and recruit. Check out the NAHB Membership Madness game plan below:

Membership Madness NAHB Prize Money

(for each size category)

First Place.................................. $2500Second Place ............................ $2000Third Place ................................ $1500Fourth Place .............................. $1000Fifth Place.................................... $500

executive Vice President’s ViewpointArt Castleartc@biaw.com

6 Building Insight      •      SEPTEMBER 2013

It’s a seller’s market, but where are the lots?

BUILDABLE LANDS INVENTORY CONCERNS

Insights

Industry professionals generally con-sider five to seven months of inventory as a balanced market. If a market area is

selling 100 homes per month, then 500 -700 homes listed for sale would be a balanced market—neither a buyer’s or seller’s.

After years of buyer’s market numbers, the 21 counties in the Northwest Multiple Listing area are showing an average of only 2.6 months of inventory of homes for sale. This includes existing and new homes,

definitely a seller’s market. King County is at 1.5 months, Snohomish County is at 1.6 months and Pierce County is at 2.27 months of inventory of homes for sale.

Not surprisingly, sales of single family homes and condos in July increased 13.6 percent ahead of 2012, with closed sales 27.5 percent ahead of the same period a year ago. Median price of homes sold was up 10.8 percent year over year.

all good news, right?

Not necessarily. While it’s is good to see a recovery in the housing market and to see sales and pric-es increasing again, there are still several clouds for the home building industry until we see brighter skies ahead.

Permit lead time and Impact Fees

The time it takes to get a building per-mit is increasing, as cities and counties who shed workers have been slow to hire and train new ones to keep up. Lenders are still re-luctant to finance

construction projects and usually require an approved building permit prior to con-sidering a loan. This means the builder has to cover all the upfront costs—building permits, impact fees, engineering, etc.—through either personal funds or loans from non-traditional sources with higher inter-est rates and points. The impact fee defer-ral bill that the Governor vetoed this year would have helped builders and meant more new homes being built.

Buildable lands Inventory ShortageThe largest cloud facing the home build-

ing industry is the availability of building lots, or the lack thereof. During the down-turn, large corporate builders purchased many of the projects that were in the pro-cess or had already gone back to the banks and over the past number of years, very few new projects were submitted for approval. Due to the regulatory environment, it takes three to five years to get preliminary plat approval to where a subdivision can actual-ly be built. If a project was started today—and you could get financing for it—lots would be available in 2016 to 2018.

In the Puget Sound region every coun-ty is selling fewer lots this year than were sold in 2012. Why? A lack of supply in a recovering market place. Sales activ-ity in 2012 was far more robust than in 2013 in many areas, see chart below.

The scarcity of available building lots will affect every community in the state, some just later than others. This means fewer homes built; artificially higher building lot and new home prices; less than projected sales, property and real estate excise taxes collected for local and state governments; and, continued challenges for small build-ers trying to compete.

A BIAW workgroup is engaged on sev-eral legislative bills that if enacted could help solve this growing building lot scarci-ty. Stay tuned for more information in future editions of Building Insight and our mid-month e-newsletter Hammer and Nail.

RESIDENTIAL WARRANTY COMPANY, LLC

Lots Lots Sold SoldCounty 2013 2012King 88 338Snohomish 44 157Pierce 140 144Kitsap 10 116Thurston 123 217

SEPTEMBER 2013 •    Building Insight 7

ELECTION SEASON RAMPS UP

Primary election recap; big races in play

Government Affairs AngleJan himebaughGovernment Affairs Directorjanh@biaw.com

Insights

On August 6, primary ballots had to either be postmarked or depos-ited in an election drop-box around

the state. In this off-year election, there were only a handful of legislative races on the ballot and if you received one, it was for local races such as school board, port com-missioner or city council. Voter turnout is low for off-year elections, yet these local public offices play a big role in your com-munities and your ability to build. These elected officials are key decision makers when it comes to a variety of land use and local policies such as comprehensive plans, zoning and impact fees. Look to your local home building association for endorsed local candidates and don’t underestimate the importance of voting in the general election for these local races.

Senate races to WatchThere are three senate races on the 2013

ballot due to appointments since the 2012 election. Two are safe Republican seats, but

the third seat, located in the 26th District—South Kitsap County and a small portion of Pierce Coun-ty—is the one to watch. This race pairs up Demo-cratic appointee, Nathan Schlicher (Tacoma), who filled the vacancy created by Derek Kilmer’s elec-tion to Congress, against thrice-elected Republi-can Representative Jan Angel (Port Orchard).

Angel emerged from the primaries with a decisive win, receiving 55 percent to Schlicher’s 45 percent of ballots cast. If a Republican wins this seat, the Senate Majority Coalition Caucus will increase from a one-

seat margin (25-24) to a two-seat margin. The stakes are high and this race is antici-pated to cost in excess of $1.5 million per side in independent expenditures. Those who reside in the 26th should expect organized labor, the environmental community, the trial bar and progressives to mar-shal their forces to try to defeat Angel. Angel’s support will be rallied by the business community and her strong primary numbers in both Pierce and Kitsap Counties. She has the added advantage of being a female candi-

date with strong name identification with an anti-tax voting record in a swing district with a strong anti-tax attitude. Historically in Washington’s top-two primary system, the candidate that wins in the primary wins in November.

In the 8th District, Republican appointee Senator Sharon Brown (Kennewick) came out of a three-way primary with a hefty lead, beating the next closest candidate by nearly 40 percent. She will face off against another Republican, Phil Lemley, who received 21 percent of the vote compared to her 58 per-cent. Senator Brown was appointed to fill the 8th District senate seat when Jerome Del-vin resigned and was elected to the Benton County Commission last December. Senator Brown is a Washington Affordable Housing Council (WAHC) endorsed candidate.

In the 7th District, John Smith (Colville) was appointed by the Republicans to fill the Senate seat vacated by longtime Sen-ator Bob Morton. In a three-way primary, the top two, both of whom are WAHC-en-dorsed candidates, head to the general elec-tion. Senator Smith came out of the prima-ries on top with 50 percent of the vote with Ferry County Commissioner Brian Dansel receiving 29 percent.

Seattle Mayoral raceIn a local race of statewide signifi-

cance, Senate Democratic Leader Ed Mur-ray (D-Seattle) won with nearly 30 percent of votes cast in a nine-way primary in the Seattle mayoral race. In the general elec-tion, Murray will face embattled incum-bent, Mayor Mike McGinn, who received 28 percent. If Murray wins, his departure from the legislature could create a series of significant changes in the leadership of the Senate Democratic Caucus.

Your Vote Does MatterAs the November general election

approaches, make sure you’re ready to cast your ballot because it really does make a difference. Quality local elected officials are important to have in place for the afore-mentioned reasons. The Secretary of State’s My Vote website—http://1.usa.gov/IH1G-Dv—is a great resource. You can register to vote, update your information and access full details about races in your district. You can also view your voting history just by typing in your name and date of birth.

Be informed, get engaged and help shape the political landscape of your local area.

republican Sen-

atorial candidate

Jan Angel (26th,

Port orchard)

won her primary

with 55 percent

of the vote.

Senator Sha-

ron Brown (8th,

Kennewick)wil l

face Phil Lemley,

another republi-

can, in the gen-

eral election.

October 7Deadline for registrations and updates

October 18 General Election ballots mailed

October 28 Deadline for in-person

new registrations November 5

General Election

&Election Dates

Deadlines

8 Building Insight      •      SEPTEMBER 2013

LEGAL CASES AFFECTING BIAW MEMBERS

BIAW’s legal victories help members

Features Legal LedgerTimothy harrisJulie Nichols BIAW Contract Attorneys

Board of Industrial Insurance appeals BIAW v. Department of Labor & Industries (L&I)

BIAW Contract Attorney Julie Nichols, along with BIAW Director of Insurance Programs Frank Romero, have success-fully litigated three cases involving L&I’s refusal to change its computer system so fi-nal orders on claim matters can be sent to both the employer and retro groups. BIAW argued successfully during a two-day hear-ing earlier this year that BIAW is entitled to receive communication of these orders as a separate and independently aggrieved entity under the applicable state law. The Board recently issued a final order in favor of BIAW in that case. In two more cases involving the same issue, a judge at the Board granted BIAW’s motions for sum-mary judgment, again ruling that BIAW is entitled to separate notice. BIAW has two more of these cases pending at the Board and is hopeful L&I will change its sys-tem to comply with the law and the recent Board decisions.

Court of appeals Clark County et. al v. Western Washington Growth Manage-ment Hearings Board, John Karpinski et. al

The Court of Appeals issued a new rule that said county GMA planning de-cisions are not final when they have been appealed and have an unresolved legal status. This case involved several de-designations and subsequent city an-nexations. The Court of Appeals issued an opinion that the Hearings Board still

had jurisdiction despite the annexations occurring before the order of invalid-ity and despite the fact that the annexa-tion issue for Ridgefield and Camas was not brought up by any party below. The Court of Appeals decided to take up that issue on its own accord, sending letters to Ridgefield and Camas asking questions about their authority for annexation, but not contacting other parties. After doing this, the Court of Appeals ruled against the County. This decision was an over-stepping of authority by the court and has essentially called into question whether and when a land use decision by a city or county is final and whether it can be relied on.

BIAW submitted an amicus brief to the Supreme Court in support of Clark County’s Petition for Review explain-ing the importance of the case and urging the Court to accept review. The Supreme Court agreed to a limited review of the case to determine whether the annexation issue was properly considered before the Court of Appeals. Then, BIAW submitted another amicus brief urging the Supreme Court to overturn the PCHB’s decision. This turned out to be a victory for the County and BIAW. The Washington Su-preme Court in late March unanimously reversed the Court of Appeals, stating, “In order to promote finality, judicial econo-my, predictability and private settlement of disputes, and to ensure vigorous advo-cacy for appellate review, we prohibit re-view of separate and distinct claims that have not been raised on appeal.”

Snohomish County & BSRE Point Wells LP v. Town of Woodway and Save Richmond Beach

Woodway and a Shoreline neighbor-hood group sued the county and developer, arguing that the project, which proposed to clean up a large industrial site and turn it into homes, shops and other public ameni-ties, should have had to adhere to stricter development regulations than the regu-lations that were in effect at the time the development application was filed. Their argument was based on the fact that the Growth Management Hearings Board, af-ter the application had been submitted, ordered the county to re-write the regula-tions. The Superior Court ruled in favor of Woodway and the neighborhood group.

BIAW filed an amicus curiae (“friend of the court”) brief in support of the developer, arguing that Washington state’s vesting laws are clear that the applicable laws are the laws in effect on the day that the application is submitted. If the opponents were to pre-vail in their argument, builders and develop-ers would have no way of knowing which rules would apply if their local jurisdiction was in the midst of a Growth Management Hearings Board proceeding or appeal.

The Court of Appeals, Division One agreed with BIAW and the developer stat-ing in their decision, “Under the Growth Management Act (GMA), a landowner’s development permit application vests to a local jurisdiction’s land use comprehensive plan provisions and development regula-tions at the time a complete application is filed, despite a Growth Management Hear-ings Board’s (Growth Board) later determi-nation…”

Woodway and Save Richmond Beach have asked the Washington State Supreme Court to review the Court of Appeals decision.

Washington Supreme Court Northshore Investors LLC v. City of Tacoma

BIAW Contract Attorney Timothy Har-ris recently submitted an amicus brief in Northshore Investors v. City of Tacoma. In this case, the developer submitted an appli-cation to the city for permits to redevelop a golf course. In the same application, the de-veloper also requested approval of the de-velopment’s preliminary plat, approval of a rezone modification, site plan approval, multiple variances and reductions to devel-

Please see LEGAL FILES on page 9

SEPTEMBER 2013 •    Building Insight 9

opment standards, and wetland/stream ap-provals or exemptions. The City Council denied the application and Northshore filed a Land Use Petition Act (LUPA) petition within the statutory time period of receiv-ing the Council’s written findings. The Su-perior Court and the Court of Appeals ruled that the LUPA petition was essentially inval-id because the 21-day period began to run on the date of the Council’s oral vote. The Supreme Court is now considering whether it will review the Court of Appeals decision. BIAW’s amicus brief argues that this case has statewide impact because builders and developers should be able to appeal the writ-ten decision of a local government.

NWCCA v. Department of Labor & Industries

BIAW Contract Attorney Julie Nich-ols recently worked with attorneys for the Northwest Wall and Ceiling Contractors As-sociation (NWCCA) to submit an amicus brief to the state Supreme Court to urge it to grant review of the Court of Appeals deci-sion adverse to NWCCA. The issue posed by this case concerns the Court’s conclusion that rate adequacy was determined based on the state fund as a whole rather than by risk class. NWCCA argued, among other things, that the Department’s failure to insure rate adequacy by risk class (in this case drywall) was a breach of its duty to the association. BIAW weighed in on this case as a “friend of the court” as this decision is concerning for the entire retro community because rate adequacy of our respective risk classes, rath-er than the state fund as a whole, is required for retro to work.

Manna Funding v. Kittitas County

BIAW Contract Attorney Timothy Har-ris also submitted an amicus brief to the state Supreme Court in support of a Peti-tion for Review in Manna Funding v. Kit-titas County. The case involved a site-spe-cific rezone from forest land to residential in Kittitas County. The Court of Appeals, in denying the rezone, determined that reme-dies under RCW 64.40 for untenable delays are not available under site-specific rezone applications. According to the Court, rezone applications are not “permit applications” for the purposes of obtaining relief under RCW 64.40 for untenable delays. If the Court of Appeals decision stands, it would

mean virtually every other permit applica-tion would be eligible for relief for unlawful permit denials and delays; but a site-specific rezone, usually one of the first permits sub-mitted, would not be eligible.

Other Important Cases Koontz v. St. Johns River Water Management District

The U.S. Supreme Court recently ruled in favor of property owners in a case brought by attorneys at the Pacific Le-gal Foundation on behalf of the late Coy Koontz, a property owner in Florida. The case arose out of Koontz wanting a devel-opment permit for three acres he owned. Koontz proposed to dedicate 11 acres of property for conservation as a part of his development proposal. The county told him he also had to pay for upgrades on gov-

SALES AWARDS2013 NEW HOME

ernment land, miles away, at a cost of up to $150,000.

PLF attorneys successfully argued to the U.S. Supreme Court that this demand was far out of proportion to any impact that the development plans might have had on the environment.

“Today’s ruling says the Fifth Amend-ment protects landowners from govern-ment extortion, whether the extortion is for money or any other form of property,” said PLF Principal Attorney Paul J. Beard II, who argued on behalf of Mr. Koontz’s son at the U.S. Supreme Court. (Mr. Koontz Sr. died during the course of the appeal.)

“Regulators can’t hold permit applicants hostage with unjustified demands for land or other concessions—including, as in this case, unjustified demands for money.”

LEGAL FILES from page 8

10 Building Insight      •      SEPTEMBER 2013

WE TAKE PRIDE IN HELPING BUILDERS PROTECT AND COVER THEIR ASSETS

AMERICAN INSURANCE ASSOCIATES, BLAINE INSURANCE SERVICES and CENTURY INSURANCE SERVICES are BIAW members and qualified agents of BIAW’s newest member benefit, the Building Industry Insurance Program (BiiP). As quail-

fied agents of BiiP, we can offer BIAW members competitive rates on builder’s risk, general liability and builders warranty products. Give us a call—it’s as easy as A-B-C— and see what we can do for you.

American Insurance AssociatesP.O. Box 850

Woodinville, WA 98072Shelli Lucus-Kennedy

425-481-5415shelli@americaninsuranceassociates.com

Blaine Insurance Services838 Peace Portal Drive

Blaine, WA 98230Rob Bring

360-332-7300

EXPERIENCE. TRUST. RELIABILITY.Insurance Specialty Group offers

Builder’s Risk and General Liability

products, and Professional War-

ranty Service Corporation offers a

10-year Insured Builder Warranty

Program. ISG and PWC are expe-

rienced and trusted names you can

trust to protect your assets.

MBA of King & Snohomish Counties and Skagit/Island Counties Builders Associationmembers

BIA of Whatcom County member

HBA of Kitsap County and MBA of Pierce County member

Century Insurance Services3208 50th Street Court NW #104

Gig Harbor, WA 98335Susie Nelson253-851-9600

SEPTEMBER 2013 •    Building Insight 11

*only counties reported are represented in state totals. *Permit data is most current available as of press time.For a complete listing of current and archived building permits, click on Online resources at www.BIaW.com.

total YtD total YtD Single Multi- June tOtalS June tOtal Family Family 2013 2013 2012 2012

BENToN 81 16 97 693 137 692 CHElAN 16 0 16 87 14 54 ClAllAM 20 0 20 71 8 38 ClARK 160 5 165 1,466 115 594 CoWlITZ 5 0 5 47 7 58 DouGlAS 14 0 14 57 8 30 FRANKlIN 40 16 56 366 82 423 GARFIElD 0 0 0 0 0 1 GR. HARBoR 6 0 6 32 5 27 ISlAND 10 0 10 85 13 65 JEFFERSoN 10 0 10 39 6 29 KING 432 316 748 5,062 1,538 5,266 KITSAP 36 0 36 224 39 197 KITTITAS 36 0 36 94 14 54 lEWIS 17 0 17 58 14 46 MASoN 15 0 15 53 16 67 oKANoGAN 10 0 10 45 10 40 PEND oREIllE 0 0 0 1 0 2 PIERCE 224 10 234 1,653 270 1,199 SAN JuAN 9 0 9 46 11 48 SKAGIT 26 0 26 131 20 96 SKAMANIA 2 0 2 12 4 12 SNoHoMISH 210 176 386 2,013 234 1,645 SPoKANE 140 2 142 610 102 423 STEVENS 1 0 1 2 0 0 THuRSToN 86 2 88 383 65 367 WAllA WAllA 6 0 6 33 3 26 WHATCoM 52 19 71 329 31 165 WHITMAN 7 0 7 275 6 24 YAKIMA 14 0 14 55 6 51

WaSHINGtON State* 1,685 562 2,247 14,022 2,778 11,739

Residential Building Permits (units)Insights June 2013

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BIAW Working For YouSeptember

September is Associate Member Appreciation Month

2012 BIAW Associate Member Appreciation recipients proudly show off their commemorative plaques.

While September is officially recog-nized by both BIAW and NAHB as Associate Member Appreciation Month, anytime is a good time to say thank you to Associates!

Why do we appreciate our Associate members? n spirit of volunteerismn membership recruitment effortsn sponsorship of eventsn time spent on association programsn service to the communityn committee participationn participation in shows and exhibitsn financial support of the associationn enthusiasm and energyn commitment to our industry

BIAW will honor Associates selected by their local association for their outstanding contributions, at the Fall Board of Directors Meeting on November 8th at the Hilton Convention Center at SeaTac. Thank you Associates, we couldn’t do it without you.