4-52013

FOCUS ONECONOMICGROWTH!

• iPad mini - WIN 4 A DAY

• White Room Challenge

• Live Remotes Friday & Saturday

Playhouse Project at the Show!Gala & Auction Saturday, April 13th, 5:30 pmSHBA members build 11 of 12 uniqueplayhouses for the auction & proceeds to helpfund youth programs at Community Centers.facebook.com/Project-Playhouse-Spokane

April 12th – 14th Friday 12pm-7pm Saturday 10am – 7pm Sunday 10am – 5pm

NEW FEATURES TI INCREASE TRAFFIC!SHBA’S 14TH Annual Premier Home Improvement ShowPresented by

The Spokane County Commissioner’s decision to expand the Urban Growth Area (UGA) boundary is a decision to promote economic growth.Full Story Page 12.

IT IS TIME TO SPEAK UP!

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30 - 34 years: Douglass Builders Gold Seal Mechanical, Inc. 25 - 29 years: Inland Empire Drywall Supply United Plumbing, Inc. 20 - 24 years: Banner Bank Barton Roofing Global Credit Union Summit Properties, Inc. Weyerhaeuser/Trus Joist Wright Brothers Sunrooms, LLC 15 - 19 years: A & A Electric Cascade Windows by Window Products, Inc. First American Title Insurance J & J Drilling, Inc. Moser, Inc. Pre-Mix, Inc. Sierra Pacific Windows Town & Country Builders, Inc. Wilbert Precast 10 - 14 years: Alpine Construction Blew’s Construction, Inc. Comfort Mechanical Contractors, Inc.

Convoy Supply, Inc. Ferrellgas, L.P. Fluid Design Products, Inc. Kilgore Architectural Products, Inc. Kilgore Construction, Inc. Lexington Homes, Inc. Liberty Creek Financial Services, PS Nordic Construction Overhead Door Co of Spokane-Coeur d’Alene Spokane County Title Company Spokane Rock Products, Inc. Thermal Supply, Inc. 5 - 9 years: A-1 Illuminated Sign Co., Inc. Alderman Excavating All-Star Garage Doors, Inc. Bacon Concrete, Inc. Coyote Creek Cabinets, Inc. Floener Electric Inland Asphalt Company Jimmy’s Contractor Service, Inc. Kooy’s Irrigation, Inc. Merrill Lynch North Central Washington Fence, LLC NSM Insurance Group Powell Custom Homes, LLC Prime Flooring, LLC

Saunders Cable, Inc. Sturm Heating, Inc. Tanz Mechanical Insulation, LLC The Davenport Hotel Collection TourFactory Zandtco Irrigation & Landscape, Inc. 2 - 4 years: Boise Cascade California Closets Hochstatter Electric Jeff Thorson Construction, LLC Keller Supply Co. Ken Paulson Plumbing, Inc. Marson & Marson Lumber, Inc. Miller Paint Co. Prime Lending RW Gallion, Inc. Solid Structures Specialized Insulation, Inc. Strahl Construction, Inc. Summit Electric Verizon Wireless First Year Renewals: Construction Svcs/Division of On-Top Realty, Inc. HomeStreet Bank Keith Wilder Construction, LLC Sovereign Exteriors, LLC

Construction Monitor

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2013 BOARD OF DIRECTORSPRESIDENT, Deacon Band, Band Construction, Inc. .........................................

FIRST VICE PRESIDENT, Jason Lawrence, Lawrence Custom Homes ............

2nd VICE PRESIDENT, Yvonne Terzenbach, Inland Professional Title, LLC ..

SECRETARY, Tim Borg, Pro-Build ....................................................................

TREASURER, Geoff Lee, Inland Northwest Bank ..............................................

PAST PRESIDENT, Phil Folyer, CGP, Morse Western Homes. .........................

BUILDER DIRECTORS:

Jim Hooper, Mission Construction ....................................................

Jim Breidenbach, CAPS, CGR, Craftsmen Construction, Inc. ..........

Dave Baker, CGP, Baker Builders .....................................................

ASSOCIATE DIRECTORS:

Garth Trimble, KAYU-TV ................................................................

Casey Lund, Winston & Cashatt Lawyers. .......................................

Shannon Wertman, Ferguson Enterprises ........................................

APPOINTED BUILDER DIRECTOR, Tim Ayers, Builders Etc., Inc. ...............

APPOINTED ASSOC. DIRECTOR,

Justin Sweeney, PayneWest Insurance ...............................................

REMODELER’S COUNCIL BUILDER DIRECTOR,

Nick Scheel, Arrow Contracting Inc. & Cardinal Supply .................

APPRENTICESHIP/ED. COMMITTEE DIRECTOR,

Tom Thosath, Nordic Construction ..................................................

GRANT COUNTY CHAPTER PRESIDENT,

Ben Justesen, Just Right Cleaning & Construction............................

TRI-COUNTY CHAPTER PRESIDENT,

Keith Wilder, CAPS, CGP, Keith Wilder Construction, LLC...........

SHBA-PAC CHAIR:

Phil Folyer, CGP, Morse Western Homes ........................................

GOV’T AFFAIRS COMMITTEE DIRECTOR,

Anthony Carollo, Stewart Title of Spokane ......................................

MEMBERSHIP COMMITTEE DIRECTOR,

Garth Trimble, KAYU-TV ...............................................................

BUILT GREEN COMMITTEE DIRECTOR,

Fred Johnston, RCS, Habitat for Humanity .......................................

LIFE DIRECTORS,

Leonard Terzenbach, CGA, CGP Bell-Anderson Insurance ................

Bob Wright, Wright Brothers Sunrooms, LLC.......................................

SHBA STAFF:

216-5384

994-2525

922-2222

924-2420

462-4259

927-9746

994-2255

534-2267

534-4500

448-2828

838-6131

534-6500

991-4580

755-9337

534-5959

448-5917

765-4138

738-9453

927-9746

328-7171

448-2828

534-2552

465-1133

927-1190

Ext. 32

Ext. 39

Ext. 43

Ext. 31

Ext. 38

Ext. 36

Ext. 30

Joel White, Executive Officer .............................................................

Kim Waseca-Love, CGA, CGP, Education Director ..........................

Membership Director ..........................................................................

Michael Cathcart, Government Affairs Director ................................

Peggy Skirko, Marketing & Comm. Director .....................................

Suzanne Jennings, Bookkeeper ...........................................................

Beverly Voight, Receptionist/Administrative Assistant .....................

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Spring is here at last, bringing with it a cautious blooming of our local economy. The once muted voices of new home buyers, anxious home owners ready to remodel, and business owners are beginning to gain volume. We have experienced a positive and so far lasting trend in qualified project leads. We have also sold a greater percentage of projects than in recent years. All of the signs are pointing to a solid year ahead. Now more than ever your business needs to take full advantage of the investment in SHBA membership. There are many benefit programs for a monetary return however I suggest looking beyond the easy target.

To explain, if you are looking for a simple ROI, enroll in our healthcare program, 401k, cell phone discount plan, industrial insurance program, etc. If you would like a challenge then I have one for you. Get involved! Coming in April at the Premier Home Improvement Show there will be at least 10 builders and local businesses donating playhouses. These buildings will be auctioned and the proceeds will benefit programs for at-risk youth at the Northeast Youth Center, Peaceful Valley Community Center and the West Central Community Center. The Remodelers Council is building a playhouse, the design and most of the materials are ready to go. WE NEED VOLUNTEERS to help in the construction. Your experience level or tool ownership is of no matter, if you want to have a good time, meet other quality individuals, and do the right thing for some children in need. If you can help please contact me or Nick Scheel, Chair of the remodelers council for information. Challenge set.

The next opportunity to excel and get involved is to join one of our committees. We are always looking for new ideas and new people to breathe excitement into these

groups. If you are an associate member, I suggest you join and participate in all of the committees but namely membership. Where else will you gain contact info and a great reason to call many new, renewing, and old member businesses. It is a great way to hone your sales abilities and foster new relationships. Builder members need to join the remodeler’s council and bring your experience to the table. Young builders and remodelers can also learn from some of the best companies in town. If you like to talk politics or have issues with any of our local or state municipalities then Government Affairs is the place to be. Our monthly meetings draw a good crowd and always have and interesting speaker, most recently Sheriff Ozzie. Builders are able to voice their concerns with code issues, land use problems, or impact fees directly to officials. We also have event committees such as Golf, Premier Home Improvement Show, and the Fall Festival of Homes. Event committees are a fun filled and educational place to meet other members and build your business. I challenge you the reader and valued member to get engaged.

You will find as an engaged member that the others around you become good friends, business associates, and as good of support group you could find anywhere. I believe in this association and what its members are capable of. Join us and get engaged.

Deacon BandBand Construction Inc.2013 SHBA President

President’s Message

For registration and details contact shbaoffice@shba.com or call (509) 532-4990

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What are interest reserves and contingency funds being added to my requested loan amount into the budget? The two items most customers do not factor into the cost of the building their new home are interest reserves and contingency funds.Interest reserves are added to your loan amount to make the monthly payment on your loan. Yes, you read that correctly, you will not have to make a monthly construction loan payment while your home is being built. The payments are made from this interest reserve account and no, it’s not free. This reserve is added to our construction loan amount.Interest reserves were designed for the benefit of the customer. Most people building a new home are either paying rent or have an existing mortgage payment while their home is being built.The last thing a customer needs is another monthly payment while building. So, banks created the interest reserve account by adding up the estimated interest payments over a 12 month period and add this to the loan amount.If you do not want interest reserves added to your construction loan amount you can ask to make your own monthly construction loan payment.Contingency funds are added to the loan amount just in case you need more money to finish building your new home. With all good intention construction loans tend to have cost over runs. The bank adds 5% to 10% of the cost breakdown and adds this amount to the loan amount just in case you have cost over runs or need better appliances. If you don’t need or use this extra contingency fund then it will not be added to your mortgage upon completion of our new home.So when you apply for a construction loan ask your loan officer to provide you a copy of the estimated construction loan budget. This budget is not usually meant for the customer but an experienced construction loan officer should not have a problem providing this to you.The budget is created from your costs and includes every cost within the loan including land balances, closing costs, interest reserves, contingency and bank fees.If you were buying a home instead of building you would normally have to put up to 5 -20% of the purchase price as a down payment. Since you’re building a home your cash equity usually come in the form of how much cash you’ve put down on your land or any pre-pays such as architect costs. Cash equity is king when applying for a construction loan.Cash equity or down payment whatever you want to call is how the loan to cost is calculated. This variable can be more important that the appraised value as a matter of fact it directly affects if you need to bring in more cash to close and the finished appraised value of your new home. The important thing to remember is that most banks require 10 to 20% cash equity into most projects.

Should you hire a builder or be an owner builder? The goal of being an owner builder is mainly to save money.Possible problems when acting as owner builder are:

• Construction over runs.• The best banks with the best rated require a builder or management contract.• Managing contractors to finish on time or to show up for work.• Depleting your personal savings.• The need to borrow more money.• Loan extension penalties.• The need to refinance your construction loan.• Foreclosure.

I could go on and on about the horror stories I hear form owner builders. If you’ve never built a home before and absolutely need to act as owner builder please take my advice and hire a reputable builder to manage your project. By hiring a builder on a management basis you can build your home and still save money. You can find one by contacting SHBA The builder/manager will help you with the cost breakdown and manage the project to make sure your new home is completed and to insure the project comes in under budget.If you are a builder and want to build your home as owner builder that is not a problem but you need to understand that most banks will require you to provide 2 years tax returns for qualifying.How does your builder determine how much your home will cost to build?The Estimated Cost Breakdown of your home is probably one of the most important forms in the construction loan package. This is the breakdown of each particular cost of construction of the home. The cost breakdown consists of numbers for your foundation, lumber, framing, plumbing, heating, electrical, painting, and builder’s profit, etc.Good builders will send out the house plans to their contractors for specific bidding one each main item or can estimate the home themselves. The builder will send one set of plans to the foundation contractor, one set of plans to the framer, one set of plans to the plumber, etc, etc. When all the numbers come in, the builder will fill out the cost breakdown and come up with a total cost to build your new home.Feel free to contact me at 509-462-4259Thanks,Geoff Lee

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NEWS Round upResponsible tax policy takes one step forward in Spokane and two steps back Statewide

On February 12, 2013, a majority of voters cast their ballots in favor of Proposition 2, a measure that would require a simple majority vote of the people or a supermajority of the Spokane City Council to raise taxes.

A very vocal group encompassing a largely “Who’s Who” of pro-tax politicians and activists ran a fierce campaign utilizing every poll tested buzz word they could come up with to persuade the people of Spokane from passing this popular policy idea that would raise the accountability bar on their elected officials.

Thankfully, with strong support from Spokane citizens, the Business Community – including the Spokane Home Builders PAC, Mayor David Condon & moderate councilmembers Mike Fagan, Nancy McLaughlin, Steve Salvatori, and Mike Allen, a more accurate and positive message of responsible government and accountability was successfully communicated. We owe a debt of gratitude to Chris Cargill of the Washington Policy Center who strongly advocated for this policy change and of course Councilwoman Nancy McLaughlin who was willing to sponsor the proposition and lead the fight to get it passed.

The passage of Proposition 2 means the Spokane City Council will now require 5 of 7 votes instead of just 4 of 7 to pass new or increased taxes. So real consensus will have to be found. A simple majority of the council still has the power to put a tax measure on the ballot to be decided by a simple majority of the voters.

• • •

On Feb 28, 2013, the Washington State Supreme Court issued an opinion on the constitutionality of a 2/3rd requirement for tax increases (I-1053) at the state level. The Court ruled 6-3 that a majority, not a super majority, of the legislature is required to approve tax increases and a people’s initiative cannot change that.

In his dissent, Justice Charles Johnson wrote, “For the past two decades, the people of this state have repeatedly voted for the supermajority provision, as has the legislature when no initiative occurred. The majority hardly recognizes, let alone analyzes, that this court has been repeatedly asked to step in and decide this issue, and we have consistently held and rejected that invitation.”

The Court’s majority opinion states “if the people and the legislature wish to adopt such a requirement (2/3rds majority for tax increases), they must do so through constitutional amendment.” Thankfully, that is exactly what we did at the local level by inserting Proposition 2 into our Spokane City Charter.

The Spokane County Commissioner’s decision to expand the Urban Growth Area (UGA) boundary is a

decision to promote economic growth

On Feb 27, 2013, the Spokane County Commissioners assembled to take public testimony on whether or not the Urban Growth Area boundary deserved expansion to accommodate future growth. It was standing room only and nearly a hundred folks signed up to testify. The meeting went late into the evening with mostly positive remarks expressed to the Commissioners on the benefits of growing the UGA, with many attending to advocate for the inclusion of their individual site-specific parcels. There was definitely a small contingent of activists speaking in favor of policies that are more restrictive to growth and a few even resorting to some pretty bizarre accusations of our County Commissioner’s integrity.

My remarks focused mainly on the economic needs of our County. Here are a few bullet points of what was covered:

The need to accommodate growth from the North/South Freeway and the construction of the new medical school

The benefits of single family residential (see graph below) and the positive ripple effect it has on our economy.

The Comprehensive Plan says, “the demand for affordable housing calls for housing policies that support choice and flexibility in housing types, density, and location.“

We can’t have affordability when we maintain an artificially limited supply that doesn’t keep up with demand

A recent NAHB Survey points out that 56% of current home buyers do not want to live in high density and only 8% would choose to live in a City Center. Expanding the UGA gives consumers that choice and flexibility they deserve.

The Commissioners chose not to make a decision the same night they heard the testimony and instead chose to wait and publicly review all the data and make a decision on March 11. Commissioners Mielke, French, and O’Quinn carefully reviewed each study area and individual request and save for a few minor adjustments they adopted the contents of the Alternative 5 map.

CALL TO ACTION:

We recently learned that Spokane Mayor David Condon is under an incredible amount of pressure from activist groups to direct city resources towards a lawsuit against Spokane County over the enactment of the Urban Growth Area (UGA) Expansion.

The Mayor made it clear to me that he has not heard our voice! He has been contacted numerous times by anti-growth activists. It is time to speak up!

If you have not done so already, I would ask you to please consider contacting the Mayor’s office mayor@spokanecity.org or (509) 625-6250. Let him know you do not support the City of Spokane filing a lawsuit to overturn this economic development tool.

Governm

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Michael Cathcart Director of Government Affairs

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We Know Home Loans As Well As We Know Spokane. And That’s Pretty Well.

Better ideas. Better banking.Ron Soss - VP/Loan Officer (509) 227-5479 or Marcy Bennett - Mortgage Loan Officer (509) 227-5461

www.bannerbank.com

Choose Banner Bank for your mortgage lending needs and you will have a team keeping you connected from start to finish. We’ve got a variety of loan packages, and the real estate experts who know how to put them together. Our experts have indepth knowlege about the local community, contractors and the current market. With Banner, the perfect loan or good advice is never far away.

Member FDIC

Spokane Real Estate Loan Center • 101 W. Cataldo, Suite 100

Company Name Join Date Spike Name - Chapter

Bath Builders, LLC dba Bath Fitter 2/1/13 Jason Lawrence, Lawrence Custom Homes - SpokaneBoyd Painting, Inc. 3/1/13 Phil Folyer, CGP -  Morse Western Construction - SpokaneBulldog Contractors, Inc 3/1/13 Garth Trimble - KAYU-TV - SpokaneCascade Raingutters 2/13/13 Jason Lawrence, Lawrence Custom Homes - SpokaneChinook Lumber 1/29/13 David Spencer, Jesse Builders - GrantColumbia Northwest Engineering, P.S. 1/16/13 Ben Justesen, Just Right Cleaning & Construction, Inc  - GrantDundee Concrete & Landscaping, LLC 1/09/13 Deacon Band, Band Construction, Inc.  - SpokaneFastsigns Yvonne Terzenbach - Inland Professional Title, Inc.Flo Form Countertops 3/1/13 Leonard Terzenbach, Bell-Anderson Insurance - SpokaneGeneral Handyman Service, LLC 3/1/13 Jim Hooper, Mission Construction - SpokaneLegacy Group Lending 1/14/13 Garth Trimble, KAYU-TV - SpokaneMarvin Windows & Doors 1/16/13 Tony Walker, GSI Glass-Deer Park Window & Doors - SpokaneMcLellan Construction, Inc. 1/04/13 Leonard Terzenbach, CGA, CGP, Bell-Anderson Insurance - SpokaneNorthwest Fence Company 1/29/13 Garth Trimble, KAYU-TV - SpokaneQuincy Heating & A/C, LLC 1/8/13 Keith Lenssen, Dean Ryan Homes - GrantRE/MAX of Spokane 2/11/13 Deacon Band, Band Construction, Inc - SpokaneRouse’s Towing and Recovery 3/1/13 Leonard Terzenbach, Bell Anderson Insurance - SpokaneSecurity 1 Lending Shaun Bleeker - Bonded Adjustment CompanySpokane Sunscreen Leonard Terzenbach, CGA, CGP - Bell-Anderson Insurance

Stanley Steemer 2/13/13 Jim Munro, ActionCOACH Business  Coaching - Spokane

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I don’t think any of them were overly optimistic as there continues to be drags on the economy caused by high unemployment, lower consumer spending and lack of certainty as to which direction our elected leaders are taking us.

From my perspective here are the key numbers for the local housing industry. Building permit tracking shows that nearly 900 single family homes were built in 2012 in Spokane County which is about a 30% increase from the previous year. This would normally be cause for great celebration but the prior year was one of the worst on record (2009 was the worst). We still need to grow our annual building permit numbers by 40% to get back to our historical average.

I do believe we will get there as the real estate market has shown to be very cyclical over the past century. We’ve experienced both the incredible highs and devastating lows during this latest cycle. All of the data I have seen shows improving demand for housing and limited supply. While I’m not a professional economist, that is good news!

The question each of us must determine is how quickly and how strong will the recovery be. I personally am betting on a recovering market and will work in concert with your Board of Directors to invest the Association’s resources to put us in a position to reap the rewards of upward growth which will allow us to provide more and improved services to our members.

I know you are considering whether now is the time to pull the trigger on new investments. Given the financial and personal pain many have experienced over the past few years it will be a difficult decision. I would encourage our members to do their homework and find the investments that will work within your comfort level.

Please know that your Association exists to Promote, Protect and Support our members. There are resources at the national, state and local levels that are specifically designed to help your business. Don’t hesitate to give me a call if you would like to take advantage of these resources.

Joel White SHBA Executive Officer, 509-532-4990 Ext 32, jwhite@shba.com

Executive Officer’s M

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Predicting the Future of Housing

I recently attended the annual “Real Estate Market Forum” organized by the Spokane Kootenai Real Estate Research Committee to gain some insight on where our industry is heading. Much like what I have heard from economists at the national and state levels, the local experts were optimistic that the worst is behind us and the long awaited recovery has begun. The key takeaways from the half-day event were as follows:

Inventory levels are down

Sales are improving

Home prices are rising

Multi-family housing is a good investment

There was a great deal of data shared during the event to back up these conclusions. You can view the slides used in the presentations at HYPERLINK “http://www.SKRERC.com” www.SKRERC.com.

While this appears to be great news after the long and painful downturn, I would describe the tone of the event as subdued enthusiasm and relief.

With the data presented showing an upward trend, the speakers

were projecting steady and gradual improvement.

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The back is one of the hardest working parts of the body, but it also is one of the most neglected. We rely on our backs to lift, pull, hold us upright, and more. But all too often we take advantage of its flexibility, strength, and capabilities. This happens even more on busy construction jobsites where physically challenging tasks are carried out for long hours.

According to CPWR–The Center for Construction Research and Training, the construction industry has the highest incident rate of back injuries of any industry, besides transportation. Of all the construction-related injuries that occur each year, 25% of them are back injuries. Depending on the severity, back injuries can cause the average worker to miss from 7 to 30 workdays – adding up to a substantial loss in income for the employee and productivity for the employer.

Most back injuries, typically sprains and strains, occur in the lower back due to activities where you lift, lower, carry, push, or pull. The risk of injury increases if you repeatedly carry heavy loads and must twist your back, or if you tend to work bent over or in awkward positions.

Proper lifting technique is critical to back safety, but perhaps more important is proper planning.

Before you lift that box, or tool, or piece of equipment, take a moment to consider your action:

Do you need to lift the item manually?

How heavy is it?

Where are you moving the item from?

Where does it have to go?

What route do you have to follow?

Using proper lifting techniques is the single most effective

thing you can do to prevent

back injuries on the job. How do you lift properly?

Plan the lift. Know where you’re going to set the item down and make sure your path is free from obstructions and slick surfaces that might cause you to slip and fall. The shortest way isn’t always the fastest, or the safest.

Perform a lift test. Get an estimate of the object’s weight. Never assume that small size equals light load. Make sure the load is balanced and packed so it won’t move around.

Stand close to the load with your feet shoulder-width apart. One foot should be slightly ahead of the other for balance.

Squat down, bending at the knees. Don’t bend at your waist or you could suffer a back strain. Tuck your chin in while keeping your back as straight as possible.

Get a firm grasp of the object before beginning the lift.

When you’re ready to lift, begin slowly, using your legs, not your back. Your back should be as upright as possible. Push with your legs straight up to a vertical position. Don’t twist your body during this step. Also be sure to lift slowly and evenly. Avoid quick jerky motions. These types of sudden movements can cause a strain or sprain.

Keep the object as close to your body as possible. The further away the load’s center of gravity is from the body, the greater the stress placed on your lower back. Be alert for anything that could cause a trip or fall.

To place the object down, follow the same procedures in reverse order.

Regular exercise and a proper diet help to maintain muscle strength and flexibility as well as helping to keep your weight under control. The increased blood flow from exercise helps keep back muscles and disks healthy. Keeping your weight down means your muscles don’t have to

work as hard. Remember that your muscles have to lift the weight you’re picking up as well as the weight of your body. Additionally, be aware of the effect tension has on your muscles. Take regular breaks when working in one position for long periods and try stretching to reduce built-up muscle tension. Keep in mind that most back injuries can be attributed to one of these five causes:

Posture

Body Mechanics/Work Habits

Stressful Living

Loss of Flexibility

Poor Conditioning

Also consider that not all back injuries are a result of sudden trauma – most are of a cumulative type, where a repeated minor injury has flared up, or continued use of a heavy tool in the same position has caused pain, or a great deal of time is spent in the same position.

Although working around heavy loads is part of the job, straining yourself doesn’t have to be. Preventing a back injury is much easier than repairing one. Because your back is critically important to your ability to walk, sit, stand, and run, it’s important to take care of it. With a little training and planning, you can change the way you approach your work to reduce the risk of permanent damage.

Education

PROTECT YOUR BACK AND YOUR FUTURE

Kim Waseca-Love, CGA, CGP SHBA Education Director 509-532-4990 Ext 39, kimw@shba.com

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NEW HOME CONSTRUCTION LOANS

I get calls every single day from people wanting to build a new home but have yet to purchase land, obtain house plans, figure out the construction costs and most importantly have yet to submit house plans for approval and a building permit. Individuals want to combine the land purchases and construction loan into one loan. Obtaining a construction loan with the purchase of the land is possible and does happen but rarely works out, here’s why:

Rarely will a land seller and realtor wait around a couple of months for you to obtain house plans, find a builder, obtain costs and submit plans to the county planning department for approval. All of the above items are required by the bank if you want to combine the land purchase and construction into one loan. The most common exception to the rule is if the land is being sold with approval house plans or if the seller of the and is willing to wait for you to get all your ducks in a row.

The most common way to handle this problem is to buy the land first or by obtaining temporary seller financing or land loan. Once you own the land you can focus on obtaining the items required by the bank in order to qualify for a construction loan.

Which lenders/banks have the best construction loans?

There are plenty of banks willing to lend money for mortgages, refinancing, home equity loans and every other type of loan.

But the best and most important indicator is how helpful is the loan officer? Is the loan officer more interested in helping you obtain the best construction loan?

If you really want to throw a curve at them, ask the loan officer if they have ever built a home themselves and what type of construction loan did they get.

Qualifying for your construction loan, exactly how is it done?

The first thing your loan officer wants to see is your completed loan application. The loan application called the (1003) will tell a story of your financial picture. Contact me if you have questions.

This analysis determines a ratio called the (income to debt ratio) and depending on the bank’s underwriting guidelines this ratio will usually range from 38% to 45%.

The income to debt ratio is the percentage of monthly debt payments (including your new mortgage payment, taxes and insurance). This ratio should not exceed 36% to 45% of your monthly income.

Structuring construction loans for approval is vitally important and is the last thing on most customers’ minds. Each and every time I receive a loan application from a customer with a bad loan experience it is always because the loan officer did not specialize in construction loans and did not structure the loan accordingly.

The old saying “you get what you pay for” is especially true when obtaining financing in building your new home.

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NEW MEMBERSCHANGE…No one ever really likes change, especially when it is forced upon you. However, it is part of reality. BIAW in the past has had two different R.O.I.I.® programs. The original that was call the R.O.I.I. and The R.O.I.I.® Select program which was started in 2001. Prior to 2011 you had the option of joining either program. In the 2011-12 enrollment year, BIAW went strictly with the R.O.I.I.® Select program. Where the R.O.I.I. program was focused strictly getting you a refund on your L&I premiums, the R.O.I.I.® Select program does this as well, but also focuses on your everyday business and how to make it successful.

Let’s take a look at the changes made to the R.O.I.I. Select program and how it’s going to affect you for the better this year and beyond.

R.O.I.I.® to R.O.I.I.® Select – The return on the R.O.I.I.® 2012 – 2013 year was 16%. The Average return for the lifetime of the R.O.I.I.® Select program is currently 45%. That is a potential 281% increase if you don’t have any recordable accidents

Automatic Enrollment – By now you should have already received a letter letting you know that you have already been enrolled in the 2013 / 2014 plan and will be receiving an invoice for it. Please note if you do not wish to participate in this program this year you must say so in writing.

Individual vs. Group Returns. – The R.O.I.I.® was based on the group for the amount of the return you got. The R.O.I.I.® Select program is individually rated so if you use less of your premiums, the greater your return will be.

R.O.I.I.® Select focuses more on your business and is designed to lower your L&I experience modification factor so your overhead operating costs are lower.

R.O.I.I.® Select offers on site safety evaluations and assistance with safety plans.

K.O.S (Kept on Salary) – This by the sounds of it scares most employers, but if you follow the steps outlined by the program, it will save you money in the long run with lower experience modification factors, higher potential refunds, and a reimbursement program for salary and equipment.

Classes – When joining the R.O.I.I.® Select program you are required to attend “The ABC’s of Claims Management,” a short 3 hour class explaining the claims process along with valuable hiring and policy practices. This class is always open to existing members as a refresher also. On April 5th, BIAW and The Spokane Home Builders Association will be having a class for participating companies called Understand How L & I Computes Your EMR . This two hour class is jam packed with answers to many of your questions about L&I. (Please see the Education section of this Builder Overview for more information on this class)

The big change from the R.O.I.I.® to the R.O.I.I.® Select program is the monetary distribution for the plan year.. The new R.O.I.I.® Select program is a 46 month commitment with the payout primarily being distributed at the end of the 46 months. Why is the wait so long? With the program returns being individually based, refunds aren’t definitive until L & I is completely done adjusting claims figures, which happens for three years after each year of paying. The most important thing to remember in

both programs is that you are not guaranteed a return-- that is up to you, your employees and your safety record.

BIAW wants to help facilitate the best possible return for all program participants, while at the same time increasing safety and reducing claims.

BATH BUILDERS, LLC dba BATH FITTERAndrew Starnino14700 E Indiana Ave Spc 2098Spokane Valley, WA 99216-1843(509) 474-9191Spike: Jason LawrenceBath Remodeling

BOYD PAINTING, INC.Tory Boyd18214 N Colton CtColbert, WA 99005-5021(509) 979-3157Spike: Phil FolyerPainting Contractor

CASCADE RAINGUTTERSThomas Plybon16108 E Jackson RdGreenacres, WA 99016-9760(509) 487-5815Spike: Jason LawrenceRain Gutters

CHINOOK LUMBERGary Sharp1656 Basin St SWEphrata, WA 98823-2133(509) 754-5295Spike: David SpencerLumber Yard

FASTSIGNSRick Cole4808 E Sprague Ave Ste 200Spokane Valley, WA 99212-0817(509) 536-3278Spike: Yvonne TerzenbachSigns

FLOFORM COUNTERTOPSTravis Hoppe5320 E Sprague Ave Ste 400Spokane Valley, WA 99212-0836(509) 928-4545Spike: Leonard TerzenbachFabricate & Install Granite/Quartz/Solid Surface Countertops

Mem

bership

GENERAL HANDYMAN SERVICE, LLCJimmy RinehartPO Box 86Fairfield, WA 99012-0086(509) 993-1540Spike: Jim HooperNew Construction/Remodels/Handyman Work

NORTHWEST FENCE COMPANYLawrence Phelps14909 E Sprague AveSpokane Valley, WA 99216-2150(509) 928-8084Spike: Garth TrimbleFencing/Gates/Gate Operators

RE/MAX of SpokaneWilliam Main12810 E Nora Ave Ste ESpokane Valley, WA 99216-1055(509) 922-3000Spike: Deacon BandReal Estate

SPOKANE SUNSCREENRick Johnson27 E Main AveSpokane, WA 99202-1619(509) 328-4015Spike: Leonard TerzenbachCustom Window Tinting

STANLEY STEEMERDavid Downing2710 N Felts RdSpokane Valley, WA 99206-4282(509) 499-9933

Spike: Jim Munro Cleaning: Carpet/Wood/Upholstery/Tile & Grout/ Water Restoration

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MAYWednesday 1st Membership Committee Meeting

Spokane Regional Codes Group - SRCG

Thursday 9th Remodelers Council Meeting - TBA

Grant County Golf Tournament

Monday 13th Executive Meeting

Tuesday 14th Government Affairs Meeting

SHBA-PAC

Thursday 16th SHBA Board Meeting

Tuesday 21st Grant County Chapter Dinner Meeting

Wednesday 22th FFH Committee Meeting

Tuesday 28th Tri-County Chapter Dinner Meeting

Thusrday 30th Remodelers Council Executive Meeting

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EVENTS CALENDAR JUNEMonday 3rd JATC Meeting

Wednesday 5th Membership Committee Meeting

Spokane Regional Codes Group - SRCG

Tuesday 6th SHBA Board Meeting

Tuesday 11th Government Affairs Meeting

SHBA-PAC

Thursday 13th Remodelers Council Meeting - TBA

SHBA Golf Tournament

Tuesday 18th Grant County Chapter Dinner Meeting

Wednesday 19th ~ Friday 21stBIAW Board Meeting - Wenatchee

Saturday 25th Tri-County Chapter Dinner Meeting

Wednesday 26th FFH Committee Meeting

Thursday 27th Remodelers Council Executive Meeting

APRILTuesday 9thGovernment Affairs Meeting

SHBA-PAC

Thursday 11thSHBA Remodelers Council Meeting - TBA

Friday 12th ~ Sunday 14thPremier Home

Improvement Show

Monday 15th Executive Meeting

Tuesday 16th Grant County Chapter Dinner Meeting

Thursday 18th SHBA Board Meeting

Golf Committee Meeting

Tuesday 23rd Tri-County Chapter Dinner Meeting

Wednesday 24th FFH Committee Meeting

First Aid/CPR Certification - Training for Construction Personnel

Thursday 25th Remodelers Council Executive Meeting

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