SEE PAGE 8

June 2013

THE MAGAZINE OF THE BUILDING INDUSTRY ASSOCIATION OF WASHINGTON

www.BIAW.com

HOMES FOR OUR TROOpS

N. Peninsula Building Association members help wounded veteran

2 Building Insight      •      JUNE 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 MonthHigh Cholesterol: ASerious Concern

HEALTH CARE REFORM QUICK FACTS: WHAT IT MEANS TO YOU

Ready or not, new taxes are here

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

1 Company Information:

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

The term “high cholesterol” is mentioned so frequently, it’s easy to overlook its seriousness. While your body needs some cholesterol to work properly, too much can stick to the walls of your arter-ies, narrowing and even blocking them.

Your risk is greater if you have a family history of high cholesterol, eat foods that are high in satu-rated fats, are overweight or are inactive. If healthy lifestyle chang-es are not effective, you may need to take a medicine called a statin. Nearly 22 percent of adults 45 or older take a statin, making this the most commonly prescribed class of medication in the U.S.

Statins can vary widely in cost—from as little as $11 per month for generics to more than $200 for brand name drugs. Most people who take them must continue to for years—perhaps the rest of their life—so the cost can add up. Be sure to ask your doctor if a generic statin could be the right one for you.

Know your numbers:

FaSt FaCtSHDL: “good” cholesterol can lower your chance of heart disease. LDL: “bad” cholesterol, leads to a build up in the arteries.

Here’s what your total cholesterol level means: Normal: Under 200 Borderline High: 200–239 High: 240 or more

Obamacare, a.k.a. the Affordable Care Act, ushers in sweeping and broad-reaching taxes through-

out the health insurance industry. Many of these new taxes will simply be absorbed through the health insurance premiums that each of us pay, however, some of the taxes are specific to “high income earners.”

High income earn-ers are defined as: n $250,000 for mar-ried taxpayers filing jointly n $125,000 for mar-ried taxpayers filing separately n 200,000 for other taxpayers

The Affordable care Act imposes an additional 0.9 per-cent Medicare tax on FICA wages, or self-employment income that exceeds certain threshold amounts.

The law also imposes for the first time ever a 3.8 percent Medicare tax on passive, or unearned, income, such as capital gains

and dividends for tax years beginning in 2013. This new surtax will apply to indi-viduals, estates, and trusts. C corporations, however, will not be liable.

How does this new tax work? For in-dividuals, the unearned income Medi-care tax is imposed on the lesser of: n an individual’s net investment in-

come for the tax year, or, n any excess of modi-fied adjusted gross in-come (MAGI) for the tax year over a “threshold amount”

EPK & Associates, ad-ministrators of the BIAW Health Insurance Program, can assist with any ques-tions you may have, or oth-er health care reform regu-lations.

If you have any questions or concerns, please contact Director of Marketing Will Compton at 800-454-7011, ext. 1237; by email at wcompton@epkbenefits.com or, online at www.CapitalBenefitServices.com.

JUNE 2013

Building Insight 8 NPBa captains large scale project for disabled veteran. Local association partners with national organization to build adapted home for veteran.

Who We Are The Building Industry Association of Wash-ington is the state’s largest trade association representing thousands of companies in the home building industry.

On the Cover

Features

Insights

7 BIaW education Program wins highest honor. NAHB names BIAW’s Education Program best in country.

11 Court denies development again. An update on the Northshore v. City of Tacoma land use case.

12 Wa homebuilders exceed energy code compliancy. A new study shows WA homebuilders tops in the country for energy code compliance.

14 Best practices for lID. Learn more about how to make new LID regulations work for your business.

4 President’s Perspective 2013 BIAW President Audrey Borders. 5 Impact fee deferral veto bad move for state’s economy. A key piece of bipartisan BIAW legislation goes down with the swipe of a pen.

6 executive Vice President’s Viewpoint 2013 BIAW Executive Vice President Art Castle. 15 Building permit update. March & April 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 ................ Colleen McGinness

JUNE 2013 •    Building Insight 3

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

Insights

TIME FOR ACTION

Lot shortage paves path for another bubble

4 Building Insight      •      JUNE 2013

,,,,

Washington’s fragile economic momentum and, consequently, the jobs and

economic vitality of its citizens are in a precarious

position.

Housing and construction have been recovering—housing starts are up, sales and prices are in-

creasing, permit numbers are growing and builder confidence has been building (pun intended). Bidding wars are back, especial-ly in King, Snohomish and Pierce Coun-ties, and housing is leading the economic recovery once again. So, why is the state and national building community so con-cerned about the future of housing?

Don’t get me wrong—building, devel-opment and real estate professionals are glad that housing starts are expected to re-turn to a “normal” level of 1.6 million by 2016. But only industry outsiders are confi-dent in these numbers. Those with boots on the ground have real concerns that the re-covery isn’t sustainable because of a num-ber of reasons, particularly the severe and decreasing shortage of buildable lots.

Inventories of new homes are at or near record lows in many markets. And, in ar-eas where buildable lots are reported, often the environmental or redevelopment regu-lations and mitigation are cost prohibitive for builders and developers.

In response to the recession, the lending pendulum has swung so far the other way that many credit-worthy builders still can-not gain financing to construct new homes. Developers can’t restart the production pipeline because of the lack of credit, and many credit-worthy borrowers can’t obtain mortgages.

In some cases, buildable lots are bank owned or have been understandably bought up by big developers who are waiting for

the most advantageous time to build. What’s left in most cases is infill devel-opment and the Not In My Back Yard (NIMBY) contingency have successfully delayed many lawfully-proposed projects.

Another related problem is that even if builders have the financing to tee up lots, many companies that specialize in devel-oping land into buildable lots didn’t sur-

vive the recession and local municipalities are understaffed and challenged in the per-mit processing department, which further delays the process.

Combine all this with the entry of large builders into the Washington market, and you’ve got intense increased pressure on local, smaller builders who are facing a dramatic shortage of building lot inventory.

Many BIAW members have already felt the painful pinch of this pervasive problem. It’s either affected your own business or you’ve felt the ripple effect as a construc-tion industry-related professional. If this is-sue is not appropriately addressed, the live-lihoods of builders and developers are not

the only ones at stake. Housing’s share of the economy histori-

cally accounts for more than 17 percent of the country’s Gross Domestic Product. In Washington State alone, new home con-struction created 41,000 jobs and generat-ed $3.1 billion in revenue to state and lo-cal economies in 2011—and 2011 was a “down” year.

It’s clear the state’s economy relies heavily on housing’s health. But, pent-up demand—people who have been waiting to buy and take advantage of low interest rates--is gobbling up available invento-ry creating an unsustainable rise in home prices. That, combined with an already-low inventory is threatening another imminent housing bubble. Washington’s fragile eco-nomic momentum and, consequently, the jobs and economic vitality of its citizens are in a precarious position.

The challenge, then, becomes how we can best communicate this ensuing crisis to the voices that can shape policy. BIAW members have formed a policy task group to provide information and solutions to lawmakers who make a difference. We’ve sent a letter to Governor Inslee’s office so he’s aware of and understands the issue. We hope to be able to sit down with him and discuss solutions. In addition, several local associations have held housing sum-mits with experts to address the issue at the local level.

The message from the building com-munity is that we’re here and we’re able to partner with local and state governments to offer sound solutions to a problem that tru-ly affects us all.

Access to affordable housing near job centers is a critical quality-of-life factor for families—cities must understand the need to address their share of housing needs. Here’s what will make a big difference:n It’s time to examine and update

land-consuming regulations to broaden the scope for builders while still sufficiently protecting the environment. n Jurisdictions need to accommodate

new growth and support appropriate infill development.n Reforms to the State Environmental

Policy Act (SEPA) to help streamline the review process while still maintaining an adequate level of environmental protec-tion. Categorical exemptions must be in-

Please see LOT SHORTAGE on page 7

JUNE 2013 •    Building Insight 5

SESSION UPDATE

Gov. Inslee’s veto will slow economic recovery

Government Affairs AngleJan himebaughjanh@biaw.com

Insights

With new housing construction starts at 1981 levels, BIAW is surprised and disappointed that

Governor Inslee vetoed legislation that would have created jobs, improved the economy and increased local and state rev-enues—all critical issues he has consistent-ly heralded as his top priorities.

BIAW’s legislative priority, Engrossed Substitute House Bill 1652, proposed shifting payment of growth-related im-pact fees from the time a building permit is filed until the actual time of impact—

when a home sale closes or cer-tificate of occu-pancy is issued. Sponsored by Rep. Marko Liias (D—Mukilteo), the bill had broad bipartisan sup-port in the Leg-islature – passing with 73 votes in

the House, 34 votes in the Senate and with 83 votes when the House agreed to Senate amendments.

BIAW members know that impact fees are challenging to finance and are a signif-icant upfront cost, especially for small and mid-sized builders. The costs are so sig-nificant, they prohibit new housing starts which, consequently, stifles local and state economies.

Nevermind that ESHB 1652 would not have deprived local governments and schools of impact fee revenue—it would

have simply deferred the same payment to closing when the house sale transaction occurs. Gov. Inslee still vetoed it without ever commenting on it during its legisla-tive journey. Furthermore, in 2009 and 2011 the Legislature, at the request of the school districts and local governments, passed legislation to extend the timeframe in which they could spend the money generated by impact fees from six to 10 years—because schools and local govern-ments couldn’t spend these revenues fast enough.

It is sad and ironic that local govern-ments and school districts shortsighted-ly opposed ESHB 1652, arguing that the money is critical to keep up with current and projected growth. Delaying this up-front cost of home construction would ig-nite homebuilding, increase the tax base and would actually bring in more money to local governments and schools through increased housing starts.

Construction is critical to our state’s economic recovery and was the hardest-hit industry in the recession. In Washing-ton, construction accounts for 25 percent of the state’s sales tax revenue. And, in 2011, a down year, new home construc-tion still created 41,000 jobs and gener-ated $3.1 billion in state and local rev-enues.

As BIAW President Audrey Borders told the press, “House Bill 1652 would have relieved an industry that is still strug-gling to recover. It would have been a big boost to homebuilding and to those of us who survived the recession and a boon to

economic growth in Washington State.”The significant upfront cost of impact

fees are passed on to the consumer. Con-sequently, this not only means less hous-ing starts and a smaller tax base, but fewer and fewer families will be able to buy a home and pursue the American Dream.

Nothing Special Happening in Special Session

I’m tempted to leave a large blank space in this section, but I’ll refrain. Gov-ernor Inslee called the Legislature back into special session on May 13 to com-plete a budget, but little action has taken place in either chamber. It is speculated that additional special sessions will be necessary to complete their work. If no budget is reached by July 1, there will be a state government shut down as funds will not be allocated to be spent.

The 30-day special session is set to end on June 11, however, there is much rumor that legislators are waiting on the next state revenue forecast to finalize the budget, which is scheduled for a June 18 release.

BIAW advocacy staff will continue to work on behalf of BIAW members, includ-ing work on impact fee deferral, building codes, workers’ compensation, and bat-tling possible tax increases.

executive Vice President’s ViewpointArt Castleartc@biaw.com

6 Building Insight      •      JUNE 2013

Odds and endsSPECIAL SESSION, BIAW PROGRAMS AND STAFF CHANGE

Insights

legislative UpdateIn the past month we saw the Impact

Fee Deferral bill, which passed both hous-es of the Legislature with large bipartisan majorities, vetoed by the Governor. Nei-ther Governor Inslee nor his staff engaged in any way during the legislative process, so his action is both surprising and disap-pointing.

It even resulted in a May 26th Seattle Times Editorial encourag-ing the Legislature to over-ride the Governor’s veto. An override, however, is unlikely. The Governor’s veto message indicated his decision was due to some school districts not being able to buy portable class-rooms in a timely man-ner and he would support a measure targeted to help smaller builders.

We have begun discussions to see what legislation might be drafted that could meet the suggestion the Governor made. If a solution can be found, it may still be possible to see some action during the cur-rent special session.

The BIAW advocacy team, in conjunc-tion with the Legislative Strategy Com-mittee, is working to find solutions that can benefit our builders and help keep our state’s economy growing. In the new lending environment, most lenders won’t consider a construction loan until after a building permit is issued. This means up-front costs such as impact fees must be paid before a construction loan is even considered –forcing the builder to invest

substantial cash or borrow “hard” dollars with expensive points and high interest and further inhibiting builders from pro-viding new housing for Washington resi-dents.

The special session of the Legisla-ture has been quiet, with budget negotia-tors meeting privately to try and reach an agreement on the state operating budget. The Governor and House budgets sug-

gest well over one billion in new taxes, while the Sen-ate Majority Coalition Cau-cus has been arguing that the over two billion in new revenues is enough to bal-ance the budget and start the education funding required by the State Supreme Court in the McCleary Decision. Also in play is legislation de-sired by either the House or Senate leadership – some of

these bills could become part of whatever agreement is finally reached.

New BIaW Health Insurance trust trustees announced

I’d like to congratulate Audrey Bor-ders, Ted Clifton, Paul Abenroth, Rick Hjelm and Bob Moe for being elected as the new Trustees of the BIAW Health In-surance Trust. Under the new trust docu-ment, all Trustees are elected by the par-ticipants of the BIAW Health Insurance Program. They will take over their duties at the Summer Board of Directors meet-ing and begin their work to continue the BIAW Health Insurance Program as a great member benefit.

r.O.I.I.® Select Program refunds Headed Your Way

R.O.I.I.® Select Program refund checks will be going out to the local associations early this month for disbursement to mem-bers. $5.7 million will be refunded to par-ticipating members. As announced in last

month’s Building Insight, this year’s first adjustment is the highest percent-age refund since the 2000-2001 plan year, and we antici-pate refund percent-

ages in future years to continue to increase, reflecting the results of changes in our highly successful program. If you have em-ployees and qualify to participate, I strong-ly encourage you to enroll–it’s in your fi-nancial best interest.

Upcoming BIaW Staff Changes Colleen McGinness, BIAW Communi-

cations and Public Relations Director, has been recruited by Hillsdale College to re-turn and work with Hillsdale Alumni at the end of June. She has shown her profession-alism and skill over the past year and a half and I know I speak for all the member lead-ership and staff in saying that we will miss Colleen and we wish her well. Colleen has been key in the new look and content in our newsletter, email communications and so-cial media. Colleen will be at the Summer Board of Directors meeting in Wenatchee and this will be our last opportunity to thank her and wish her well.

Special SeSSion2013

JUNE 2013 •    Building Insight 7

Insights

NAHB AWARD OF EXCELLENCE

BIAW Education Program best in country

creased. n County and city comprehensive

plans need to support adequate growth projections. n Reforms to all permit processes to

streamline and improve the process. n Reductions in subdivision and short

plat approval timelines.n Realistic buildable lands analyses.Those of us that remain after the hous-

ing crash are still struggling to put the pieces back together. Housing has been

LOT SHORTAGE from page 4

BIAW has been recognized for its outstanding Education Program with an Award of Excellence from

the Executive Officers Council (EOC) of the National Association of Home Builders (NAHB).

“I am so proud to learn BIAW’s qual-ity Education Program has been honored by NAHB,” said BIAW President Audrey Borders. “The Program is truly an excel-lent member benefit and its success is due to the dedicated and professional staff and members who help preserve the American Dream of quality homeownership through education.”

Since its inception in 1997, the BIAW Education Program has steadily evolved into an innovative and valuable benefit to the Washington residential homebuilding community. The Program offers an exten-sive list of NAHB Designation classes, wherein members can advance their pro-fessional expertise and credibility, which in turn betters the whole of the homebuilding industry.

BIAW’s Education Program also of-fers classes on stormwater management and erosion control, claim management principles, and a variety of legal and busi-ness-related classes to expand the breadth of builder and associate members’ profes-sional skill sets.

The Education Program is also a source of non-dues revenue for BIAW and its lo-cal associations—last year $13,244.93 was distributed among the nine local associa-tions that partnered with BIAW’s Educa-tion Program.

It’s no surprise that such a successful program would also boast nationally-rec-ognized instructors. In 2012, four BIAW members and NAHB designee holders won national awards for Certified Green Builder of the Year, Certified Aging in Place Spe-cialist of the Year, Graduate Master Builder of the Year and Green Educator of the Year. That same year, the BIAW Education Pro-gram enrolled more participants in NAHB designation courses than any other associa-tion in the nation.

“Students of the BIAW Education Pro-gram understand principles of good busi-ness management and quality craftsman-ship,” said Education Program Manager Amanda Fields. “I am thrilled that the pro-gram has received such an honor and I’m grateful to all the members and local asso-ciation staff who have helped advance our program to be the premiere in the country.”

The Association Excellence Awards is an annual program designed to recog-nize the outstanding accomplishments of state and local home builders’ associations and executive officers in the field of asso-ciation management. EOC membership is comprised of the staff executives who di-rect more than 750 NAHB-affiliated state and local home builders’ associations rep-resenting more than 140,000 home builders in communities across the United States.

“The Association Excellence Awards recognize the outstanding effort, commit-ment and achievement an executive offi-cer and an association’s membership have made,” said Tim Minton, president of the EOC and executive vice president of the Home Builders Association of Raleigh-Wake County, NC. “These awards are well deserved and represent a true showcase of the outstanding work of home builders’ as-sociations around the country.”

The winning entries will become part of the online EOC Idea Loan File so that oth-er executives and associations across the country can access and learn from them in order to provide better service to their own members and community.

To learn more about the Association Ex-cellence Awards, go to www.NAHB.org/aea. To find out more information about the BIAW Education Program, click Ed-ucation under the BIAW Programs tab at www.BIAW.com or contact BIAW Educa-tion Manager Amanda Fields at amandaf@biaw.com or 800.228.4229, ext. 114.

steadily recovering and, as it does, so does the rest of the economy. The inven-tory issue, however, could lead us straight toward another crash. Considering the al-ready-fragile state of the industry, a sec-ond housing bubble could easily be more painful than the first.

On behalf of BIAW members from around the state, I urge a response from local and state lawmakers. The issue is critical and if not addressed, could hit our state’s citizens hard. We can all work to-gether to find a solution.

8 Building Insight      •      JUNE 2013

Cover Story

HOMES FOR OUR TROOPS

N. Peninsula BA helps build home for veteran

Please see HFOT on page 9

Corporal Ammon Lang was on his first deploy-

ment in Sangin, Afghanistan when he lost both

legs in an IeD blast. Above, Lang (far rightt) is

pictured with his fellow Marines.

Cpl. Lang with his wife Kiri during the ground

breaking ceremony.

Marine Cpl. Ammon Lang fought selflessly for freedom. So, it didn’t make much sense when

he didn’t have freedom in his own home. That’s why Cpl. Lang will be the deserving recipient of a beautiful new home—mort-gage free—courtesy of the national organi-zation Homes for Our Troops and its local partner, the North Peninsula Building Asso-ciation (NPBA).

On June 11, 2011 while on a routine

patrol in Sangin, Afghanistan, Cpl. Lang stepped on an improvised explosive device that traumatically amputated his left leg above the knee. Eventually, his right leg had to be amputated below the knee as well.

“Initially, I knew when the blast hap-pened, I guess it really kind of stunned me,” Cpl. Lang said. “They got me on a bird and as soon as I was on the bird, there was a Brit-ish medic and she said ‘we’re going to take care of you, love.’ That’s the last thing I re-member.”

After weeks in hospitals and rehabilita-tion centers, Lang settled near family with his wife and two young sons in Port Ange-les. The Langs’ current home has an upstairs that Cpl. Lang has seen only once—when he was able to crawl up on one knee just to see what it looked like. Countertops are a chal-lenge; the back porch drops six inches from the door to the patio, the microwave is built above the stove and taking showers results in a lot of standing water.

After struggling for mobility and safety maneuvering in his own home, Cpl. Lang applied for the Homes For Our Troops pro-gram.

The organization’s noble mission is to “assist severely injured veterans and their immediate families by raising donations of money, building materials and professional labor to coordinate the process of building a home that provides maximum freedom of movement and the ability to live more inde-pendently.”

Cpl. Lang, his wife, Kiri, and their two young sons were selected by the program to receive a new accessible home free of

charge. “To have someone come and say they’re

going to build a home for us is huge,” Kiri Lang said. “To have someone say they will build it and it’ll be exactly what we need has been a wonderful blessing and a huge relief off our shoulders.”

Once a wounded veteran is selected for the program, Homes For Our Troops part-ners with local builders and groups to facili-tate the project.

“A Building Partner is a large scale, high-quality home builder and a community lead-er,” said Homes For Our Troops Executive Director Dawn Teixeira. “The most success-ful projects are led by a local champion who is able to inspire the building community to come together and give back to a severely injured veteran.”

Enter NPBA—the project’s “Building Partner.” In addition to being a community leader, Building Partners essentially serve as General Contractors for the project and are in charge of permitting. They serve as the clearinghouse to coordinate suppliers, sub-contractors, labor, etc.

JUNE 2013 •    Building Insight 9

HFOT from page 8

  n Fund This Project n Become a Volunteer  n Hold a Fundraiser  n Send an e-card

HomesForOurTroops.org866-787- 6677

Ways You Can Help

hundreds of volunteers, donors and military vet-

erans help to make the homes For our Troops

mission a success. Above, the ground breaking

ceremony gets underway with the Pledge of Al-

legiance. right, Ammon, Kiri and homes For

our Troops Ceo Tim Mitchell take time out for

a photo op.

NPBA members are serving Cpl. Lang as the “boots on the ground” for the project and are helping coordinate not just materials and labor, but also fundraising. NPBA member Jerry Hines of Seqium’s Hines Construction is serving as the project’s volunteer General Contractor. NPBA has lined up more than 60 businesses and individuals to help with the home construction.

Homes For Our Troops and the NPBA held a ground breaking ceremony for Cpl. Lang’s home on April 27. An estimated 150 people attended to honor Cpl. Lang and his family. NPBA 2013 President Garret Dela Barre spoke, along with Port Angeles Mayor

Cherie Kidd, Clallam County Commission-er and Ret. Coast Guard Captain Jim McEn-tire and Major General USA, Ret. and CEO and President of HFOTs Tim McHale.

Veterans from American Legion Post 29 stood at attention with flags on either side of the driveway to herald Cpl. Lang’s arrival, escorted by police and Patriot Guard Riders of Washington and Clallam County Sher-iff’s Deputies. NPBA members Jeff & Jay McFarland-Rainbow Sweepers arranged for the American Legion Riders and flags.

The Lang family’s single-story home will have 2,700 square feet of living space with more than 155 special adaptations to make it accessible such as keyless entry, an open-floor plan, wider hallways and door-ways, roll-under countertops, sink and stove and pull-down shelving in the kitchen. The master bedroom will feature a roll-in shower with a built-in bench, therapeutic tub with grab bars throughout, a roll-under vanity, touchless faucets, temperature controls and a comfort toilet. The project is estimated to cost about $400,000, including donated ma-terials and labor and the cost of the land.

The Lang project is the first for Homes For Our Troops in Washington State. The or-ganization has handed over the keys to 129 home build projects in 35 states. At the end of 2013, they will have built 165 homes for veterans in 38 states, including Washington.

The selfless sacrifice of our country’s military heroes paves the way for our con-tinued freedom. In the face of unimagina-ble circumstances, America’s veterans forge

ahead on the behalf of all Americans to pro-tect and preserve the American Dream.

That dream is one of freedom, mobil-ity and the opportunity to pursue happi-ness. Thanks to Homes For Our Troops, the NPBA and countless donors around the

country, Cpl. Lang and his family will soon have a home of their own.

Although the Cpl. Lang project has a good start, much is still needed. If you would like to help provide Cpl. Lang a specially-adapted home with a monetary donation, please visit the Homes For Our Troops web-site at www.homesforourtroops.org. If you would like to volunteer labor or materials, contact North Peninsula Building Associa-tion’s Executive Officer FaLeana Welch at fleana@npba.info or at (360) 452-8160.

*The quotes from Cpl. Lang and his wife originated in a Homes For Out Troops video interview. Watch it on their website, at www.homesforoutroops.org.

Veterans from American Legion Post 29 at

attention as Cpl. Lang arrives at the ground

breaking ceremony.

10 Building Insight      •      JUNE 2013

Insights

Member wins gift card and rebate check

Member Benefit BulletinLara hastings r.o.I.I.® Select Marketing Managerlarah@biaw.com

BIAW MEMBER BENEFIT

Congratulations to BIAW member Edwin Yip of Tamarack Develop-ment Corp! Edwin won a $200 gift

card to REI—simply for participating in the BIAW Member Rebate Program. Any builder or remodeler who signed up and ap-plied for a rebate by April 30 was entered

into a drawing for a $200 Cabela’s or REI Gift Card.

If you’re not tak-ing advantage of the BIAW Member Re-bate program, you’re throwing away mon-ey! The program re-

wards builders for their loyalty to many of the nation’s leading housing industry prod-uct suppliers. For the minimal effort of in-forming us about the home construction products you use and when you complete a home or project, you’ll be putting money

back in your pocket. It’s easy and profit-able!

BIAW member edwin Yip earned a $467 rebate

by participating in BIAW’s Member rebate Pro-

gram. Yip also won a $200 reI gift card drawn

from among those participating in the first quarter

rebate period.

This free, rebate-based program utiliz-es the purchasing power of 30+ state home building associations’ participating mem-bers to earn brand name manufacturer re-bates. Until recently, manufacturers only offered these rebates to the “Top 10 Build-ers.” Now, no matter how small or large you are, you qualify. For the minimal effort of reporting your home construction prod-ucts, you can earn cash rebates. Quick and easy online forms, no receipts and no changes to your business practices. What could be eas-ier?

Through the third quarter of 2012, 24 BIAW members partici-pated in the Mem-ber Rebate Pro-gram and received a total of $7,825.50 in rebates—simply by submitting min-imal online paper-work on products they were already using. “The BIAW Member Rebate Program has made receiving product rebates easier by bringing suppli-ers together,” said Mandi Fowler of Viking Homes.

“Every quarter I spend about two hours compiling the information into an Excel spreadsheet, but the check we receive is well worth the time spent. I get a rebate on materials from suppliers I didn’t even know I could get rebates from.”

Check out the participating manufac-turers and enroll today by going to www.HBArebates.com. If you have any ques-tions, feel free to contact BIAW R.O.I.I.® Select Program Director Lara Hastings at 800-228-4229, ext. 171. or larah@biaw.com.

JUNE 2013 •    Building Insight 11

BIAW IN THE MEDIA

McBride and Castle talk housing over the airwaves

Features

The Court of Appeals, Division 2, recently reached another confound-ing and troubling decision in North-

shore Investors LLC v. City of Tacoma. The case involves the proposed subdivision and development of a failing golf course in northeast Tacoma. There was significant community opposition to the development and BIAW, along with the Washington Re-altors® and the Master Builders Associa-tion of Pierce County, submitted an amicus brief in favor of the development. The case

presented interesting and important issues related to infill development, rezone crite-ria, and GMA compliance. The proposed development plan met all open space re-quirements, was already zoned for single-family residential lots, and was a model for infill development within an urban growth area.

Unfortunately, the Court of Appeals did not reach those important issues, and instead tossed the case out, saying the de-veloper should have filed the appeal with-in 21 days of the City Council’s oral vote denying the project, rather than within 21 days of the City’s subsequent written de-cision. In other words, builders and devel-

Master Builders Association of King and Snohomish Counties Second Vice President and 2011 BIAW President Patrick McBride and BIAW Executive Vice Presi-

dent Art Castle discussed the state of Washington’s homebuild-ing industry with Shelley Dudley and Nick Neal, co-hosts of Real Estate Radio Northwest. The one-hour segment aired May 18 on KKOL AM 1300. It is available to download or stream online on www.KKOL.com.

Court of Appeals tosses LUPA appeal

LEGAL UPDATE

opers will now have to file Land Use Peti-tion Act (LUPA) appeals within 21 days of an oral decision – regardless of any future written decision which may change, clar-ify, and define the oral decision. The case is troublesome because oral decisions are regularly tweaked prior to the issuance of a final written decision. Often, a proposed written opinion is circulated after an oral decision, and all parties have an opportu-nity to clarify and clean up issues before it becomes an appealable order. Now, an

applicant may have to file an appeal before that written order is even fi-nalized.

The case muddies the LUPA ap-peal waters, and Northshore Inves-tors (a BIAW member) is strongly considering a petition for review to the State Supreme Court. BIAW at-

torneys will join with them and encourage the Supreme Court to consider this impor-tant issue.

BIAW executive Vice President Art Castle (l)

and MBA of King and Snohomish Counties

Second Vice President Patrick McBride dis-

cuss the impact the homebuilding industry

has on Washington State’s economy.

Legal LedgerJulie Nichols Whitehouse & Nichols, LLPBIAW Contract Attorney

12 Building Insight      •      JUNE 2013

WA builders voluntarily build above energy code

ENERGY EFFICIENCY IS A MARKET-BASED SOLUTION

Insights

RESIDENTIAL WARRANTY COMPANY, LLC

The Washington State Department of Commerce and Northwest En-ergy Efficiency Alliance (NEEA),

representing an alliance of Northwest utili-ties and energy efficiency organizations, recently announced a study of residential energy code compliance that shows Wash-ington State is the highest in the nation.

Most BIAW members are well aware that in 2009, Washington State adopted

one of the most rigorous residential build-ing energy codes in the country. In fact, the code the State adopted exceeded the bar set by the national 2009 code.

To determine whether Washington homebuilders met this challenge, NEEA commissioned a compliance study, which included 69 homes in 17 counties. The De-partment of Commerce had no data to show how Washington homebuilders were doing

on compliance un-til NEEA’s study.

Using two dif-ferent methodol-ogies, this study found compliance rates were 97 per-cent and 96 per-cent, respectively. Additionally, en-ergy modeling of each home in the study showed that many homes go be-yond the minimum requirements.

The study’s re-sults should make other states’ energy efficiency cham-pions green with envy—pun intend-ed. And, it prob-ably comes as no surprise to BIAW members, many of which are active in local Built Green®

programs and see the cost benefit of meet-ing the demand for sustainable, low to zero energy home construction.

“The results of this study show the firm commitment of Washington’s homebuild-ers, with the support of local Build Green® programs, to energy efficiency, lowering homebuyers’ utility bills and helping the environment through market-based solu-tions,” said Ted Clifton, BIAW member, homebuilder and president of Zero Energy Plans, LLC.

The Cadmus Group, which conducted this study and has done 10 other residen-tial code compliance studies in the past three years, has also reviewed and tracked the results of studies conducted by other researchers. According to the Group’s re-search, Washington State homebuilders show their commitment to green building and clean, renewable energy by building homes that consume 4 percent less ener-gy than the stringent level set by the 2009 code.

“Washington’s compliance rate of 97 percent compared to recent compliance studies in other states that have rates rang-ing from about 40 to 90 percent,” said Al-len Lee, executive director of Cadmus. “Washington’s results are a real tribute to everyone involved in homebuilding and code enforcement in the state.”

The effort to measure compliance has roots in the 2009 American Recovery and Reinvestment Act (ARRA), which pro-vided federal stimulus funding to states. A condition of receiving the ARRA funds was that states adopt the 2009 version of the national model energy code or a state-developed equivalent and develop a plan to achieve at least 90 percent compliance with that code by 2017.

JUNE 2013 •    Building Insight 13

*Only counties reported are represented in state totals. For a complete listing of current and archived building permits, click on Online resources at www.BIaW.com.

Residential Building Permits (units)Insights

MarCH 2013 total YtD total YtD Single Multi- aPrIl tOtal aPrIl tOtal Family Family 2013 2013 2012 2012

94 23 117 488 69 426

22 0 22 54 13 28

16 0 16 33 8 21

125 89 214 1,002 99 358

0 0 0 0 0 0

8 0 8 29 16 34

13 0 13 24 4 15

39 16 55 252 63 264

0 0 0 0 1 1

6 0 6 18 8 18

16 0 16 57 13 44

6 0 6 22 5 20

425 99 524 2,849 814 2,657

47 10 57 143 31 108

8 0 8 39 15 28

6 0 6 27 5 19

12 0 12 27 12 38

11 0 11 21 5 15

0 0 0 1 0 2

292 2 294 1,063 155 604

7 0 7 29 10 31

27 0 27 78 17 53

5 0 5 9 3 4

171 88 259 1,192 227 1,234

93 6 99 355 115 227

0 0 0 0 1 1

71 0 71 226 69 239

8 0 8 16 6 15

45 112 157 223 34 69

19 8 27 216 4 16

11 0 11 36 12 28

1,603 453 2,056 8,529 1,876 6,617

aPrIl 2013 total YtD total YtD Single Multi- MarCH tOtal MarCH tOtal Family Family 2013 2013 2012 2012

BeNtON 88 40 128 371 170 332

CHelaN 12 0 12 32 0 7

ClallaM 8 0 8 17 7 7

ClarK 146 130 176 788 86 246

COlUMBIa 0 0 0 0 0 0

COWlItZ 9 0 9 21 10 18

DOUGlaS 10 0 10 11 4 11

FraNKlIN 81 0 81 205 94 200

GarFIelD 0 0 0 0 0 0

Gr. HarBOr 3 0 3 12 5 10

ISlaND 12 0 12 41 10 31

JeFFerSON 6 0 6 16 5 15

KING 371 198 569 2,338 966 1,833

KItSaP 35 0 35 86 34 77

KIttItaS 20 0 20 31 9 13

leWIS 7 0 7 21 7 14

MaSON 6 0 6 15 9 26

OKaNOGaN 7 0 7 10 3 10

PeND OreIlle 1 0 1 1 0 2

PIerCe 220 12 232 765 194 449

SaN JUaN 10 0 10 22 11 21

SKaGIt 18 0 18 51 14 36

SKaMaNIa 1 0 1 4 0 1

SNOHOMISH 174 237 411 903 564 1,007

SPOKaNe 81 42 123 256 59 112

SteVeNS 0 0 0 0 0 0

tHUrStON 50 0 50 155 89 170

Walla Walla 5 0 5 8 2 9

WHatCOM 22 2 24 66 17 36

WHItMaN 3 164 167 189 2 12

YaKIMa 22 0 22 35 6 17

WaSHINGtON State* 1,428 825 2,253 6,470 2,377 4,728

March and April 2013

14 Building Insight      •      JUNE 2013

Building successful low impact developments

THIRD IN A SERIES

Features This is the third in a series of articles relating to Low Impact Development and new stormwater regulations in Washing-ton.

See LID on page 15

Low Impact Development (LID) is a fundamental shift in approach to managing stormwater. Rather than

sending all the rain that falls on a site into pipes and detention ponds, LID uses a va-riety of strategies to distribute water into management features around the site and/or infiltrate it directly into the ground.

This approach has many benefits for builders and develop-ers. Smaller LID fea-tures often cost less to install than stormwater pipe infrastructure and detention ponds. They also take up less space on the site and can be integrated into exist-ing roads and rooftops, providing more flexi-bility in site design and preserving more build-able lots. Some LID features, such as biore-tention and bioswales, can be attractive land-scape features and can increase property val-ues.

The community and environmental ben-efits are also significant. With more water infiltrating into the site, aquifers are replen-ished and water is cleaned by the soil and plants, significantly reducing the amount of pollution that reaches waterways. Wa-ter that seeps through soils is also cooled,

which is important for healthy fish popu-lations.

LID does not work, however, on ev-ery site. Careful planning and soil testing should be done to ensure that these fea-tures work together as intended to manage stormwater.

New tools and PrinciplesTo get the water quality benefits and

meet regulatory requirements, LID has to be done correctly. The Department of Ecology has worked with engineers, pub-lic works staff, and representatives from the building community to create guidance

documents on LID. Ecology’s Stormwater Management Manual for Western Wash-ington (SWMMWW) and the Low Impact Development Technical Guidance Man-ual for Puget Sound describe Best Man-agement Practices (BMPs) for LID. Ecol-ogy is also currently working with Eastern

Washington stakeholders to create a LID guidance manual for Eastern Wash-ington. Although these are not directly regulatory doc-uments, the SWMMWW is referenced by stormwater regulations and does ex-plain the BMPs in detail.

example BMPsNo individual BMP is

mandated for all sites, but rather sites use a combina-tion of strategies that are appropriate.

Here are some exam-ples:

Permeable Pavement

Pervious concrete, as-phalt and pervious pavers al-

low water to infiltrate through and usually into a storage layer of larger rock below. They are very effective at infiltrating storm-water in parking lots, low volume roads,

What’s the difference?Comparison of Conventional and low Impact Development

low Impact Developmentn Manages stormwater onsite, cleaning and reducing the amount of waterthatoverflowsinto the storm sewer and streamsn Less expensive bioreten- tion systems can reduce cost, naturally treat storm water, and replenish aquifersn Techniques and BMPs are basedonasignificant amount of current re- search

Conventional

n Sends stormwater to the storm sewer, taking pollutants with it n Expensive pipe and pond infrastructuren Techniques haven’t been updated in over 50 years

JUNE 2013 •    Building Insight 15

driveways and sidewalks. Gravel roads and driveways are not considered pervious be-cause they are compacted, contain fines, and have no storage layer underneath.

Bioretention Bioretention cells are designed to cap-

ture and infiltrate and naturally-treat storm-water using soil and plants. They differ from stormwater retention or detention ponds because they absorb the water (rath-er than leaving it all standing), take up less space, and because they are usually de-signed to be an attractive feature. It’s par-ticularly important to put the right plants in the right place in bioretention facili-ties. Drought-resistant, native plants work well in the high edges of a rain garden, and

plants that tolerate saturated soils do best near the bottom.

Urban and Suburban treesLarge evergreen trees are the most ef-

fective type of trees for absorbing storm-water, but all trees have an impact. Trees draw water out of the soil and capture rain-water on their leaves which evaporates back into the atmosphere. Projects that re-tain or plant trees can earn a tree credit that reduces the amount of impervious surface to be mitigated.

reduce Impervious SurfacesWhen impervious surfaces are large,

like on roofs or parking lots, they can build up runoff volume and velocity, which can carry more sediment and requires larger fa-cilities to manage and detain it. Developers can reduce the amount of overall impervi-

ous surfaces on the site by designing narrower, more efficient roadways. Small-er impervious surfaces can also mean reduced mate-rial costs.

Vegetated roofsVegetated roofs are not

likely to be a common LID strategy, but they do pro-vide a stormwater benefit in that they can act like a sponge to hold rainwater during storm events, fil-tering it and releasing it slowly. Extensive (shallow) or intensive (deep) vegetated roofs can also

offer other benefits to a project. They can provide an extra insu-lating layer to reduce heat gain (and cooling costs), and they can be designed as attractive roof gardens to provide an amenity for building occupants to use, or to improve their view.

rainwater Harvesting Rainwater harvesting can be

a viable LID strategy where site infiltration potential is poor, or density is high enough to lim-

it available infiltration area. In addition to reduction in stormwater runoff, rainwater harvesting for reuse or irrigation can re-duce the consumption of municipal water supply, resulting in a savings to the build-ing owner over the long term.

amending SoilsIn addition to using specially-amended

soils in rain gardens and bioswales, the soil throughout a site can perform better at cap-turing stormwater with amendments. Con-struction activity compacts that soil and degrades its structure, often rendering it nearly impermeable. A thin layer of topsoil adds little benefit, but by amending soils throughout the site with organic material a significant amount of infiltration and treat-ment capacity can be restored. This also provides a benefit in improving the health and drought-tolerance of landscaping.

Minimum excavation Foundations

Conventional foundations remove the organically-rich, permeable surface soils and make the building footprint into im-permeable surface. Minimum excava-tion foundations use concrete piers, grade beams, pins and soil screws to support the

structure, transferring the load to the sub-soil. This preserves the layer of permeable surface and can be an efficient use of space on small sites with otherwise poorly infil-trating soils.

Dispersion and Infiltration Impervious surfaces such as roofs can

be managed by dispersing runoff over a yard or through natural vegetation. Storm-water can also be managed by infiltration trenches, dry wells and other infiltration techniques that disconnect roof runoff from other stormwater.

example Best Management Practices (BMPs)

Permeable pavers allow water to infiltrate through to a storage layer

below.

LID from page 14

Bioretention ponds feature drought-resistant native plants at

the edge and saturated-soil loving plants near the bottom.

Minimum excavation foundations work

well with poorly infiltrating soil.

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Golf TournamentWednesday, June 19 @ Noon

Here’s your last chance to tee up, show up and giddy up to these events scheduled for the BIAW Summer Board meeting. Join your fellow BIAW members at the annual BIAW Golf Tournament, Excellence In Remodeling Awards Reception and Annual Spike Party. To sign up for any of these events, contact Brenda (ext.113) or Amanda (ext. 114) at 800-228-4229.

Last Chance!

Spike PartyThursday, June 20 @ 6 pm

Excellence In Remodeling Awards Wednesday, June 19 @ 7 pmJoin your fellow BIAW members at the Excellence in Remodeling Awards recep-tion Wednesday evening. This annual event highlights the state’s best remod-eling projects and showcases quality craftsmanship in a variety of categories and price ranges. The event takes place in a casual setting while the highlight of the evening is the awards slide show.

Kick off the BIAW summer board meeting with a round of golf at the Highlander Golf Club in Wenatchee. ProceedsbenefittheBIAWEducationScholarship fund. Includes golf, cart, rangeballs,lunch,teegiftandraffleticket. Team and individual prizes, too.$125 single/$425 foursome

Giddy up! for the annual BIAW Spike Party—a Western-themed shindig in honor of those Spikes who have recruited new members throughout the year. Fun, food, drinks, games and prizes are on the night’s agenda.

SponSorSAAA Kartak Glass & Closet

EPK&Associates/CBSBenefits Puget Sound Energy

SponSorSDawson Lane RCI Group, Inc.

Olympia Master Builders Remodelers CouncilMBA Pierce Co. Remodelers Council

Meridian Title & EscrowPhase II Construction Puget Sound Energy