2018 Winter Issue #1
Annual Meeting Honors Members
HBRACC hires new Executive Officer Annual Meeting Recap NAHB News: Cost of Constructing a Home Home Ownership Rates Recovering Tax Reform Become A Sponsor Advertise in our magazine, At Home on Cape Cod Upcoming Events Golf, LEGO, BRICC
Welcome! Diane Pratt, Executive Officer
Over 140 members and guests gathered at the Wychmere Resort on Thursday Dec 7 to: review Assn highlights from 2017; look ahead to 2018; install the 2018 board of directors & officers, and recognize the 2017 member awardees. The theme of the evening, which was graciously sponsored by Shepley Wood Products, The Cooperative Bank of Cape Cod, and Mid-Cape Home Centers, was “Building Community”, which is the guiding principle of the Association and its members. continued on page 3 Heading the organization for a two year term as President is Peter Kimball, co-owner of APKimball Construction with his wife Angela Kimball, whose company does it all – new construction, additions, and remodeling. Joining Kimball on the Executive Committee as officers are: 1st Vice President and Treasurer, Trevor Meyer, Meyer and Sons, Inc.; 2nd Vice President and Secretary, Ben LaMora, Lineal, Inc.; Immediate Past President, Matt Anderson, Anderson Framing, Sandwich Also serving on the Board of Directors: Nick Bowes, Bayside Building, Inc.; John Cotton, First Citizens Federal Credit Union; April Ducott, Cape Associates, Inc.; Brian Harding, Andersen Windows; Tim Sawyer, Brown Lindquist Fenuccio & Raber Architects, Inc.; Tony Shepley, Shepley Wood Products, Inc.; Jack Stevenson, Mid Cape Home Centers. The 2017 HBRACC Hall of Fame Award, the highest award a member can receive, was presented to Mike Duffany, owner of M. Duffany Builders. The 2017 Builder of the Year is Peter Kimball, and Associate Members of the Year went to Brian Harding of Andersen Windows, and also to Gail O’Rourke, White Wood Kitchens. Leah Fennell of Shepley Wood, and Dave Ortolani-Paraclete Press were named Volunteer Members of the Year. A new category was introduced this year, Friends of HBRACC, and the inaugural honorees were Wendy Northcross, CEO of the Cape Cod Chamber of Commerce, and Matt Pitta, News Director of Cape Cod Broadcasting Media for their support of HBRACC’s mission. The HBRACC Building Community Award is given to members who consistently through philanthropic efforts builds community, transforms lives, and promotes a positive image of Cape Cod’s building industry. This year’s recipients were EJ Jaxtimer, Jaxtimer Builder Inc, and Ralph Cataldo, Cataldo Custom Builders. Special Appreciation Awards were given to Garry Prevedini-Boston Cedar, Andrea Baerenwald-Cape Associates, Jen Crawford-Jenick Studio, Natascha Batchelor-The Davey Expert Tree Co, Gary Souza-Rogers & Marney, Jim Gronski-Gronski Construction, Anthony Baroni and his team at Stonewood Products, and Matt York-York Construction.
IN THIS ISSUE
The Board of Directors of the Homebuilders & Remodelers Association of Cape Cod has chosen a new executive officer. Diane Pratt has served as the executive director for several non-profit organizations, has sat on the Board of Directors for Children’s Cove and Mass Commission on the Status of Women, and was named non-profit leader of year in 2015 by Cape Cod and Plymouth Magazine. continued on page 6 Pratt, who is a seventh generation Cape Cod native, said she is excited to be a part of the organization. “I have been dabbling in real estate a little bit so this just seems like a perfect fit,” she said. Pratt is a licensed realtor with Sotheby’s International Realty in Falmouth and a member of the Cape Cod & Islands Board of Realtors, Mass Board of Realtors and National Board of Realtors. Pratt said the lack of affordable housing on Cape Cod is just one of the big issues facing the association, which has more than 300 members. “What I’d like to do is be able to make more affordable homes for the residents of Cape Cod so that we can keep young people and everyone here on the Cape so they can make it their home,” Pratt said. She also wants to hear from the association’s members to find out what they are looking for in terms of support, benefits and continuing education. “It’s going to be a little bit of a learning curve but it won’t take us long to get up and running,” Pratt said. Pratt replaces Christine Duren, who retired at the end of last year. Construction and Safety Programs October Monthly Dinner Meeting - 9th Edition Building Code NAHB-EPA Recinds Post-Construction Stormwater Rule NAHB-New Home Sales Rise in June Build A Future-3rd Residential Const Career Day NAHB-Tear Down Starts Building Blocks Series for Homeowners BRICC Gallery at HBRACC Message from HBRACC Emerging Leaders Certified Aging-in-Place Workshop Scheduled
The homeownership rate fell for all race and ethnic groups from 2004 to 2016, but has rebounded in recent years, according to the Census Bureau’s Housing Vacancy and Homeownership survey. Looking at just the last year, the overall U.S. homeownership rate increased to 63.9% in the third quarter of 2017, up 0.4 percentage points from the third quarter of 2016.
Homeownership Rate Slowly Recovering
Construction costs account for 55.6% of the final sales price of the average new home, while the cost of the lot represents 21.5% of the total sales price, according to a recent NAHB survey of home builders. Overhead and general expenses (5.1 %), sales commissions (4.1%) and financing costs (1.8 %) are among the other factors contributing to the final sales price. Of the eight major stages of construction, interior finishes, at 28.6%, account for the largest share of construction costs, followed by framing (17.3%), exterior finishes (13.9%), major system rough-ins (13.8%), foundations (10.8%), final steps (7.0%), site work (6.7%), and other costs (2%). Rising materials prices and limited labor have been primary concerns for builders throughout 2017, and those issues are expected to continue into next year as well. But NAHB Chief Economist Robert Dietz notes that recent figures for starts and sales suggest continued growth moving forward.
The Cost of Constructing a Home
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Annual Meeting, continued from page 1
The tax reform bill signed into law by President Donald Trump on Dec. 22 will provide tax relief for hard-working families and create a more favorable tax climate for small business. NAHB achieved significant victories in the bill, such as the real estate exception to the business interest deduction, second homes, private activity bonds, the capital gains exclusion, and many other provisions. Changes within the Tax Cuts and Jobs Act take effect for the tax year starting Jan. 1, 2018. Major provisions of the law include: Mortgage interest deduction. Retains the mortgage interest deduction and the deduction for second homes, but reduces the mortgage interest cap from $1 million to $750,000. State and local property taxes. Allows taxpayers to deduct up to $10,000 of state and local taxes, including property taxes and the choice of income or sales taxes. Capital gains exclusion. Maintains existing law that allows home owners to exclude up to $250,000 (or $500,000 for married couples) in capital gains on the profit from the sale of a home if they have lived in the house for two of the last five years. HELOC. Eliminates the deduction for interest on home equity loans. Private activity bonds. Retains private activity bonds (PABs), which will enable the Low Income Housing Tax Credit to maintain its effectiveness as the most indispensable tool for the production of affordable housing. Without PABs, we would face the loss of more than 788,000 affordable rental units over the next decade. Alternative Minimum Tax. Eliminates the Alternative Minimum Tax (AMT) for corporations and increases the AMT exemption amounts and phase-out thresholds for individuals. Individual tax brackets. Retains seven tax brackets, with rates ranging from 10% to 37%. This will provide tax relief for individuals and small businesses and represents a tax cut for most taxpayers. Estate tax. Doubles the estate tax exemption. Carried interest. Retains existing carried interest rules, but assets must be held for three years. Pass-through deduction. Allows most taxpayers with pass-through income to deduct 20% of that income based on wages or on wages plus a capital element. Business interest deduction. Provides the taxpayer a choice of making a one-time election for a deduction limited to 30% of adjusted gross income; or for real estate, a 100% deduction for business interest, but with certain trade-offs. Like-kind exchanges. Preserves the benefit for real estate investors to make tax-free exchanges of property, commonly referred to as “like-kind” exchanges. Multifamily depreciation. Gives the taxpayer the choice of taking 27.5- or 30-year depreciation, depending on how they elect to treat their business interest. Individual tax provision sunsets. Almost all individual tax elements – mortgage interest, state and local property taxes, individual brackets, etc. – expire at the end of 2025.
NAHB News: Tax Reform Will Benefit Builders, Small Businesses
SPONSORSHIPS-There is one for you!
AT HOME ON CAPE COD magazine
Showcase your products and services to leading professionals in the building industry and to your clients—existing and potential homeowners. We offer sponsorships to fit any budget! Our Marketing Guide will serve as your road map on how to add value to your membership, build relationships, and generate recognition for your company in front of your industry peers, and the public. Interested in sponsoring more than one event, or multiple advertising opportunities? We have the ability to work with you to further customize a sponsorship opportunity or an entire annual strategic approach to help you leverage your marketing dollars! At Home on Cape Cod is a way to enhance the value of your membership in the HBRACC. • It reaches local and state legislators and regulators to support our positions on key issues. • As a member, your business is included free in the Homeowner’s Resource Directory of Members. • It reports on topics, products and technologies that can enhance your business. • It promotes members’ commitment to Building Community. • It helps the association recruit new members and strengthens the organization. • It provides a new revenue stream so dues are not the only source of association income. Contact Diane Pratt at (774) 330-3140 or diane@capecodbuilders.org
Peter Kimball President Trevor Meyer 1st VP/Treasurer Ben LaMora 2nd VP/ Secretary Matthew Anderson Immediate Past President Directors Natascha Batchelor Nick Bowes John Cotton April Ducott Brian Harding Tim Sawyer Tony Shepley Jack Stevenson Staff Diane L. Pratt Executive Officer Stacy Hylinski Administrative Asst
Pratt, continued from page 1
Home Builders & Remodelers Association of Cape Cod (HBRACC) 3 Patti Page Way Centerville, MA 02632 O: 774-330-3140 F: 774-994-8284 capecodbuilders.org
LEADERSHIP
MARCH DINNER MTG: TUESDAY MARCH 13 @ UPPER CAPE TECH Tour the Trades Departments, meet instructors and students. Learn about their curriculum, co-op program, hiring process, and needs. Discuss your hiring needs and expectations. Enjoy a meal prepared by culinary students. Agenda: 6:00 - 6:45 - Dinner 6:45 -7:15 - Tour 7:15 -8:00 - Program
UPCOMING EVENTS
$40 HBRACC members; $35 Early-bird discount fee before 6:00pm on Thursday3/8/2018 $45 Non-members; $40 Early-bird discount fee before 6:00pm on Thursday 3/8/2018
Your Ad Here Contact HBRACC 774-330-3140
The BRICC Awards are presented biennially to outstanding builders, remodelers, architects, designers, and other housing-related professionals. Featuring over 40 categories, the BRICC Awards encompasses all facets of the residential building and remodeling industries, including sales, marketing, design, and landscaping.
BRICC is Back! Submissions open June 1
