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Session Week 7: Park Bill, Tama Theis and Statute of Repose
Park Fee Bill Clears MN House: HF 321 (Hornstein, DFL-Minneapolis), a bill which includes improvements to the fair market value tie-in for park fees, passed the House floor yesterday on a 123-2 vote. The underlying bill clarifies authority for Minneapolis to collect park dedication fees on redevelopment projects that aren’t subdividing a parcel. The fair market value piece ties fair market value of land based on tax valuation or other relevant data to the annual fee establishment process undertaken by cities. It also provides a pathway for a builder or developer to object to the fee rate, which then triggers a negotiated fee between developer and the city, or bases it off an independent appraisal of land in the same or similar land use category. This addresses the problem seen throughout the metro where cities are using dated
and inflated land values from the pre-downturn market, leaving park fees far higher than they ought to be.
As mentioned last week, if this bill passes into law, park dedication fees will better reflect actual costs and park fees will moderate in many cities. The bill now awaits action in the Senate.
Tama Theis Wins Special Election: We're pleased that our fellow BAM-Federation member, Tama Theis, won the Special Legislative Election in House District 14A (St. Cloud area). Theis owns a St. Cloud area remodeling business with her husband and served as past president of the Central Minnesota Home Builders Association. Housing First supported Theis in her election bid with ads in the St. Cloud newspaper. Congratulations to the newly-elected Representative Theis!
Bill to Modify Statute of Repose in Construction Disputes Moves Ahead: A bill to modify the limitations of contribution and indemnity actions for damages based on services or construction to improve real property was heard and passed in policy committees in both houses last week. As mentioned previously, the initiative would limit the period, known as a statute of repose, to 14 years. The bill affects BATC members in that it attempts to align the statutory ‘window’ for contribution and indemnity claims at 14 years after substantial completion of the project. Currently the statute of repose offers 12 years for new home and remodeling projects. The additional two years does not affect the 10-year warranty or any homeowner actions against the builder. However, in a scenario where a homeowner alleges a defect near year
10 of the warranty and does not initiate a legal action until near year 12 of the statute of repose, an additional two years would allow for contribution and indemnity claims by participating firms in a construction dispute.
The bill moved onto the Judiciary Finance Committee in the House and to the floor in the Senate.
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Hope to see you at the 2013 Spring Home & Garden Show. Get discounted tickets by using the Promo Code: IPARADE
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Starts Saturday!
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Good luck to all our builders participating in the Parade of Homes. With 374 new homes opening Saturday, a half-million-dollars in promotion, and a recovering economy, we hope this mark the real beginning of our industry's recovery.
Check out what the Star Tribune had to say in last Sunday's newspaper.
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BRS: The Oscars Had Nothing on Us
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It was a Hollywood-style evening at the Convention Center last Thursday as 200 exhibitors took over Hall D and strutted their stuff to almost 1,000 builders, remodelers, architects and interior designers. The Schwieters gang once again took top prize in our theme contest. Yes, that's Dumb and Dumber plus Pee Wee Herman, Lucy, Elvis, Charlie Chaplin and, believe it or not, a carpenter with our celebrity judge, Jason Matheson. We'll be taking reservations for next year's show (February 20, 2014) this summer.
Check out our photo gallery!
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Some cool stuff from NAHB
What do home buyers really want? First and foremost, it's energy efficiency, at least that's what NAHB's survey found out. They also discovered people don't want elevators. Read our blog and, if you want all the details, you can buy the survey at NAHB's Book Store.
What is Wrong with the Appraisal System? Find out what NAHB is doing to help when you read our blog.
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You Can Still Earn your Credits
BATC University has four more full days to go (February 28 and March 5, 6 and 7) plus a three-day CAPS (Certified Aging in Place) course. Register online now!
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Permits at Four Year High Across US
According to newly released data from HUD and the U.S. Census Bureau, nationally, the issuance of permits for new-home construction rose 1.8 percent to 925,000 units - the quickest pace since mid-2008.
"Steady demand for new homes is prompting builders to put more construction crews back to work in order to replenish thin supplies of completed product," noted Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. "We expect this progress to continue through the spring buying season and beyond, with credit availability and poor appraisals being the primary limiting factors."
Check out the local statistics with the release of our March Hot Sheet. If you don't subscribe, sign up today online at BATC.org, or email Heather to get a subscription.
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Members in the News
Luxury is back according to the Star Tribune. You may have seen this article
on Sunday which featured several of our members. We’re pleased to once again see development stirring but wanted to point out that we were concerned that the article implies that a 3500 to 4500 square-foot home is “luxury,” which runs counter to our important messaging regarding the Home Indoor Sprinkler System Mandate. If you have the opportunity to speak with your state Representative and Senator, please remind them that a 4500 square-foot house with an unfinished basement is clearly a move-up product for Twin Cities families, and by no means a luxury home. Then you can reinforce that the expense of a Home Indoor Sprinkler System Mandate is unneeded and overly burdensome regulation.
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