Today marks the initial steps of the 2013 legislative session where legislators will establish the state's two-year budget and debate a host of policy matters. The 2012 elections flipped control of the legislature from the GOP to the DFL, giving Minnesota a political dynamic not seen since the 1989-1990 biennium. Adding another element of complexity is the infusion of newly elected legislators from both parties who will make up a remarkable 30% of the legislature!

So what's at the top of the legislature's to-do list? The budget and a robust tax debate. No issue will get more attention in 2013 than the state's budget, which currently sports a $1.1 billion dollar deficit. This is a modest problem in comparison to recent budget cycles, but the aim of the DFL- led Capitol is much larger than the two-year deficit. Governor Dayton and a large contingent of DFLers are focused on major structural reform to Minnesota's tax code. They see this as a once in a generation opportunity to place Minnesota on a sound and equitable financial footing.

In spite of having legislative control and the Governor's Office, achieving an overhaul of our tax-system will be a major challenge for the DFL. In addition to the steep learning curve for new members, there will likely be competing visions within the DFL caucus falling along metro v. rural, safe v. swing district, and urban v. suburban fault lines.

Get the 2013 housing forecast straight from national economist Elliot Eisenberg, tonight at the January 8th Dinner Meeting. 

It's not too late to arrive fashionably late, either. Register by noon to attend the event from 5 - 9 PM at the Radisson Hotel Roseville, and wear a bow tie to earn $100 in BATC Bucks. Register online or call Heather Litchy at 651-697-7573 with questions.

Fire Sprinkler Mandate

BATC has opposed mandatory fire sprinklers during the past two sessions and continues to do so again in 2013. Currently, the Minnesota Department of Labor and Industry (DLI) is in the process of updating the Minnesota State Building code. The legislature, or DLI through the code promulgation process, must determine whether or not the code will include mandatory fire sprinkler mandates. The code process and legislative work creates timing and process challenges that we will have to address throughout 2013 in search of a favorable outcome on this issue. This is the number one priority for BATC in 2013.

Park Fees

Today, park fees must be established based on the average fair market value of unplatted land. This has created challenges as the value of land has dropped dramatically, but the fees have remained at pre-downturn rates. This has resulted in park fees approaching 30% of the land value, where the industry standard has traditionally been around 10%.  We are working with Local Government Advocacy groups to find a solution to bring park fees in line. One approach that we've suggested is to define fair market value as the value negotiated between the municipality and the applicant, or the market value of the property as determined by independent appraisals.

Regulatory Cost of Housing Impact Statement

Between 25-30% of the final price point of a home built in the MSP Metro is attributable to regulatory costs and fees. The major costs (permit fee, plan review fee, SAC, WAC, park fee, stormwater fees, etc) should be disclosed to homeowners by the local government unit (LGU) for each project at completion. This basic level of transparency ensures homeowner awareness of where their money is allocated, and advances the broader discussion about the regulatory costs of homebuilding and remodeling.

Legislative Issues

BATC monitors all bills and amendments introduced in the session. We carefully track several initiatives that have significant, and sometimes harmful, effects on the homebuilding and remodeling industry. Noting that there are issues that we are unaware of today, BATC is focused upon issues that we've weighed-in on over the past decade:

• Imposition Transportation Impact (utility) Fees - A per lot fee imposed by local governments on new developments and property owners.

• Changes to the 60-Day Rule - Local governments have sought changes to relax or repeal the 60-day rule, which requires them to respond to completed land use and permit applications in a timely manner.

• Elimination of the municipal reporting requirement for fees - Seen by some local government groups as an unnecessary mandate, removing the municipal fee reporting requirement would lessen the transparency of local government regulatory costs on new developments.

• Imposition of a Vehicle Miles Traveled (VMT) policy to guide land use decisions - As attempted in previous sessions VMT monitoring is a first-step towards using drive and commute patterns to influence land use choices on a regional level.

• Metropolitan Council (MC) moving to make affordable housing an enforceable system of the MC - Currently the MC engages in regional planning and guidance on affordable housing. There are indications that the MC is interested in broadening their authority to include affordable housing as one of its enforceable systems.

How You Can Help: Register for Builder Day at the Capitol!

Wednesday, January 30, 2013

Plan to attend our 2013 Builder Day at the Capitol on Wednesday, January 30th. We'll gather at the Best Western Kelly Inn near the Capitol for issue briefings, remarks by elected officials and tips on how to most effectively meet with your legislators. We'll be making appointments for those who register! Please plan to join us to advocate for our important issues.

Bloomberg - "Construction employment in the U.S. is poised to rebound as a swelling pipeline of projects prompts companies to expand" [keep reading].

You Bring the Jobs, We'll Bring the Applicants:
BATC's February 6th Job & Career Fair has come at a good time. Members have expressed a strong need for quality, skilled staff - this is the opportunity to find just that.

Register for a table at our Job & Career Fair on February 6th, 1 - 6 PM, if you have, or expect to have, job openings. The cost is $100/table and the event will be hosted at the Roseville Skating Center.

Appraisal Institute - "The Federal Housing Administration’s Acting Commissioner, Carol J. Galante, announced Dec. 18 that she would implement substantial reforms to shore up the government mortgage program, which reported Nov. 14 that it was $16.3 billion in the red, Mortgage Daily reported" [keep reading].

A special welcome to the 25 new members who joined BATC in the month of December, and a special thank you to the 194 new members who joined the association in 2012!

To make sure that you are utilizing your BATC membership, join us this Thursday from 9 - 10 AM for our Member Orientation, designed for new and long-time members. Get more information.

Twin Cities Homebuilding Comes Around
Star Tribune - "Housing construction in the Twin Cities doubled last year, signaling the end of the worst construction slowdown in generations and the beginning of a historic apartment boom for the city of Minneapolis" [keep reading].

Expect Strong Housing in 2013, Says Zandi
Watch the Video >>

Exisiting Home Sales Rise to Fastest Pace in Three Years
Rueters - "The National Association of Realtors said on Thursday that existing home sales climbed 5.9 percent last month to a seasonally adjusted annual rate of 5.04 million units. That was the fastest since November 2009..." [keep reading].

Please note the address change in your most recent Showroom Mixer flyer. The new address for the March 12th Member Mixer at Brock White is 1243 Eagan Industrial Rd, Eagan, MN 55121.

BATC University is proud to be a leading source for contractor credits for builders and remodelers in the Twin Cities area. Classes start next week and run through March. 

View the 2013 BATC-U Schedule >>

Classes include free lunch, free parking, a comfortable and convenient facility, first-rate builder training instructors and classes that are approved for both Contractor and Real Estate credit.

Watch Our Upcoming Courses Preview >>

Curt Christensen, Lee Lyn Construction; Finance and Commerce: Slower Job ... [read article].

VIEW OUR UPCOMING EVENTS NEWSLETTER >>

January 8, 2013
January Dinner Meeting [register]
January 10, 2013
Member Orientation [register]
January 22-24, 2013
International Builder's Show [register]
January 23, 2013
IBS Hospitality Suite [get more information]
January 30, 2013
Homebuilder Day on the Hill 
February 6, 2013
Job & Career Fair [get more information]
February 6, 2013
YP's 3rd Annual Feed My Starving Children Event [register]
February 12
Remodelers Roundtable at Designer Marketplace [register]
February 12
Showroom Mixer at Designer Marketplace
February 21, 2013
Builders & Remodelers Show [buy a booth]
February 21, 2013
Foundation Recognition Luncheon [get more information]
March 2-24, 2013
Spring Parade of Homes
March 22-24, 2013
Spring Remodelers Showcase

See Complete Calendar >>

Become an event sponsor: Take your membership to the next level by partnering with BATC. Contact Kori for sponsorship openings.