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Continue Fighting the Fight
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Phil Rodriguez, Chair of the Board |
When building our businesses, we look for areas to grow
Last month, a report from the California Department of Finance announced that the City of Sacramento built more new homes in 2018 than any other city north of Los Angeles. This was accomplished in part because of the diligence and teamwork of the North State BIA members and the collective efforts of the BIA Government Affairs staff working with the City of Sacramento to improve the planning and permit processes. Despite that remarkable accomplishment, we continue to struggle with delivering more new homes in the Sacramento Region to achieve both consumer demand and industry goals.
With new regulations on the agenda in California, Governor Newsom's lofty goal of constructing 500,000 new homes per year in California seems more challenging and less likely. Home prices continue to rise due to costs associated with state and local regulations being cast down on our industry. Among these are proposed inclusionary housing regulations which would require new residential developments to provide affordable housing for certain income levels. These requirements basically drive up the cost of market rate housing thus forcing more potential homebuyers to the sidelines. The fact of the matter is that the homebuilding industry and future homeowners should not be overburdened with solving a societal issue, affordability, that is not caused by industry.
Additionally, the California Environmental Quality Act now includes new regulations to address greenhouse gas by requiring "Vehicle Miles Traveled" in transportation impact analyses. This type of analysis assumes total miles traveled during new home construction and during the lives of future homeowners, and if not reduced by 15% from current levels, would add tens of thousands of dollars to the cost of each home.
Our industry continues to face pressure with respect to prevailing wage policies. AB 520 would significantly raise the cost of constructing rental and for-sale homes and SB 533 would retroactively require prevailing wages for a project not because it meets the statutory requirements, but due to the its geographical location. The building industry has a better solution than prevailing wage requirements: Minimize regulations to keep development and construction costs down to make homes more affordable or attainable, rather than forcing prevailing or higher wages on projects so future homebuyers can afford more expensive homes.
The North State BIA and the CBIA continue to resist new regulations, but at the end of the day our industry is met with more proposed regulations that are nonsensical when you consider the Governor's aggressive goal to increase housing production statewide. We need more homes and our industry will continue to do everything we can to make that happen.
Phil Rodriguez
Chair of the Board, North State BIA
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SACOG CEO Speaks to Regional Builder/Developer Council
Last week, SACOG Executive Director James Corless spoke to the Regional BDC with updates regarding both transportation and housing within the 6-County region. SACOG's newest Metropolitan Transportation Plan is set to be adopted in February 2020. With it comes the reality of the gap between what the region would like to implement vs. what the region has for funding. Corless stated this gap is widening with the Federal gas tax not being raised since 1993, and the State gas tax being a short-term solution as vehicles are becoming more efficient and electric. Corless addressed this gap by stating that the region must raise revenues, reduce capital expenditures, or both. One option brought up was the implementation of express lanes throughout the region, specifically around the I-80 corridor and I-5 to Sacramento International Airport. Regarding housing, Corless expects a 50-80% increase of RHNA numbers from the State in the next cycle. Corless expressed desire to build higher density housing near existing light rail stations and mixed-use zoning around the region in general.
CBIA Governance Meeting Updates
Two weeks ago, CBIA held their summer government affairs committee meeting, which went over statewide topics that are, or will, impact BIAs throughout California. CBIA has stopped a wide range of bad bills, one of which would have mandated inclusionary housing on 80% of projects. The BIA feels positively about SB 330 as a housing creator, as it would speed up housing in California by lifting certain local restrictions on development for 5 years in areas where housing needs are the greatest. The meeting discussed progress in the industry is making with connecting new homes to utility services and in making it easier to deal with new state wetland standards. Mitigation fees, tax increment financing, the community solar compliance option, and various regulatory affairs priorities were also discussed
Placer County Approves Continued Investment in Road Conditions
The Placer County Board of Supervisors approved a $4.7 million contract agreement with Teichert Construction to maintain nearly 12 miles of county-maintained roads with pavement overlay, set to begin in June. The project is funded by the county's expected $7.3 million share of Senate Bill 1 revenue for the current fiscal year. Work is scheduled for roadways in Homewood, Squaw Valley, Lincoln, Loomis and Meadow Vista. Should current projections hold, funding will be also available for road maintenance for an additional 2.7 miles in west Roseville and Granite Bay.
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Register your Submissions for MAME
It's hard to believe, but MAME will be here before we know it. Now is the time to start thinking about your submissions and preparing your categories! Registration will open soon, below are the deadlines to add to your calendar!
June 17, 2019 Early bird submission registrations $95
July 1, 2019 General submission registrations $125
July 31, 2019 All materials submitted
September 13, 2109 Awards Event
Welcome to Our New Members - May
California Mantel & Fireplace, Inc.
Contractor's Resource Group
Endicott Communications, Inc.
Evergreen Home Loans
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Hanwha Q CELLS America, Inc.
Sierra Door & Supply Inc.
Weintraub Tobin |
Register Today for the Following BIA Events
Click
here
to view 2019 BIA events.
Thank you to our Chili Cook Off Sponsors
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Cool Down Sponsor
Landscape Development, Inc.
Red Hot Sponsors
Anton Development Company, LLC
Chase Home Lending
Jeffery DeMure + Associates Architects Planners
Photo Booth Sponsor
Fusion Sign + Design
Water Hole Sponsor
The New Home Company
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Habanero Food Sponsors
Amerifirst Financial Inc.
Frayji Design Group, Inc.
North State Building Industry Foundation
Sacramento Bank of Commerce
SAFE Credit Union
U.S. Bank Home Mortgage
Chili Partner Sponsors
Caliber Home Loans
Eric Wiegand Lending Team - United Wholesale Lending
Ferguson Bath, Kitchen & Lighting Gallery
Finance of America Mortgage
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PCBC - Always an Amazing Event
HomeAid Sacramento's Executive Director, Beth Kang and Development Manager, Amalia Griego, attended the Pacific Coast Builders Conference last week. "To have the opportunity to personally thank all of our supporters in the homebuilding industry, including trade partners and the banks, is what makes our jobs so great," said Beth Kang. "We are incredibly grateful for the opportunity to attend the Hall of Fame dinner and congratulate our HomeAid America Board Chair, Sheryl Palmer, CEO of Taylor Morrison, on her induction into the Hall of Fame."
Sixteenth Annual Trap Shoot Will Be Here Before We Know It!
Our 16
th Annual Trap Shoot is just a couple of months away. We are proud to have Windustrial as a leading sponsor of the event!
The Trap Shoot is on August 23
rd and we are recruiting sponsors and volunteers. If you are interested in either, please contact Amalia Griego at 916-735-6464 or
amalia@homeaidsac.org.
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Summer Internships Have Begun!
The summer internship program has finally started. Twenty interns from Elk Grove Unified School District started their summer of learning, earning and fun on June 3. They are working with Lennar in Roseville under mentorship of Central Valley Paining, Future Plastering, L&S Framing, Pacific Parks Landscaping, Rescue Electric and Villara Building Systems.
There will be 52 students on-site this summer from Placer County Office of Education, Elk Grove Unified School District and San Juan Unified School District. This summer's hosts include
Elliott Homes, K. Hovnanian, Lennar, Taylor Morrison and USA. The program has grown this year in terms of participating school districts and homebuilders! Thank you to all the industry leaders who participate in this program. You are helping to alleviate our workforce shortage.
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CHAIRMAN'S CIRCLE SPOTLIGHT
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