On the heels of what many of our longtime members tell me is the state association’s most successful year ever—in terms of advocacy and reforming tax and regulatory policies impacting the building industry, I’m often asked how HBA Michigan is following-up on the banner year of 2012. My response: (1)by being diligent in sustaining recent legislative and regulatory victories; (2) identifying strategies and solutions to a looming building industry worker shortage; (3) staying on offense for additional reforms that encourage more housing investment across the state; and (4) supporting local HBA membership growth to strengthen our voice as an industry.
Diligence: last year your state association was successful in eliminating 18 mils of taxation on inventory homes. Now some are suggesting that this change only reduces the tax on the building structure itself (not the property). Needless-to-say, your state association is working behind the scenes to ensure that this "interpretation" not take root. Similarly, last year your state association ushered in a historic set of changes to development rules for construction in and around our state’s critical dunes. Some are now trying to circumvent these changes thru administrative channels. Your state association is on guard and has interceded in several instances to make sure bureaucrats don’t disregard the new rules. Last year your state association was also able to get a new law passed that moves our state to a new flex-code cycle, so that code changes only have to occur once every 6 years instead of every 3. But, this new cycle only begins after this year’s revision to the state uniform construction code. So, your state association and a dedicated committee of builders from around the state are working to ensure that this year’s changes only include those that are absolutely necessary and justified.
Worker Shortage: this year we are supporting legislation (HB 4465 & HB 4466) that will allow curriculum flexibility enabling more kids to enter construction voc ed programs around the state. The large majority of kids interested in such programs are turned away. Why, because scheduling and availability of language and Algebra II courses would make it impossible for them to graduate on time if they entered the construction program. We believe parents ought to have the flexibility to get their children into these hands on programs (and still be able to graduate). We’re also working with the Construction Teacher’s Association, your local association, and others to try and develop better networks and communication strategies to connect potential workers with builders, remodelers and contractors. Some members may not yet see shortages in their areas, but they are coming. Too many workers were lost in our industry during the downturn (some 70,000 jobs were lost). Even modest growth has begun to trigger shortages.
Staying on Offense: much like the changes to our State’s rules for development in critical dunes that were passed into law last year, this year we are seeking to reform Michigan’s wetlands law to avoid turning wetland permits over to the EPA and the Army Corp. Additionally, bills will soon be introduced to allow more flexible options for new septic systems. We also have bills in the works to make sure taxable values don’t spike when homes are rebuilt after a fire or other tragedy; and to eliminate the 18 mils of property taxes on any remaining inventory homes built before last year’s change went into effect. And, we are supporting legislation that would allow the Michigan State Housing Development Authority provide gap financing for development, since no (or few) private lenders are financing inventory homes or developments.
Not only does HBA Michigan work on a daily basis in the legislative, regulatory and judicial arenas, we have to be involved in the political arena. Friends-of-Housing (FOH) is your association’s political action
committee and voice in the election process. While the 2014 elections seem a ways off the work for success in those elections is already underway. This means raising money. FOH will be involved (in one way or another) with almost every race on the ballot. From the Governor’s race on down to the 38 state senate seats that will be on the ballot to the 110 state representative races taking place around the state…to three Supreme Court seats. We can’t sit on the sidelines in the political arena if we want to continue to see successes in the legislative, legal and regulatory worlds. So, next time you’re asked to lend your financial support to Friends of Housing, please remember this reality and contribute.
Membership Growth: HBA Michigan cannot be successful without strong local HBAs. Your state association is investing in one-on-one membership recruitment and retention training for local HBA E.O.s’ this year. Nearly a dozen have already signed up for this training. Your state association is also working to expand and improve member-only benefits and discounts. A copyright infringement insurance program has been developed (and no other such coverage can be obtained unless you’re a member). We’ve also started offering a new telemedicine service among others. These along with our long-valued Meijer, Speedway, Frankenmuth and other programs provide an important tool for locals to retain and grow their membership.
Bottom line: HBA Michigan is the only statewide organization dedicated to promoting and protecting the interests of the residential building industry. If you are in the industry and are reading this, but aren’t a member of an HBA, I hope you conclude that you need to be. For members, please know we’re always just a phone call away. Don’t ever hesitate calling me directly if you have a question or need assistance. My number is 517-646-2555.
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