- March / April, 2011
- Vol. 48, No. 2
Spec. home bill clears Senate, awaits final house action Speaker of the
crats have fled the state, thus blocking the House of Representatives from conducting business. Indiana Builders Association lobbyists have been working with members of both parties in the Indiana Senate to keep this bill moving as it is one of a few pieces of legislation that has received a hearing in the Senate during the second half of the session. The bill was one of the last bills voted on in the House before the walkout.
House Brian Bosma addresses IBA Board
Doug Miller, GMB, CGB, CAPS, CGP,
IBA’s 2011 President, has testified in sev-
Leaders of the Southwestern Indiana Builders Association thank State Representative Suzanne Crouch (R-Evansville) for introducing HB 1046 dealing with a property tax deduction for spec. homes in the House of Representatives. Rep. Crouch was the lead author of the legislation and currently serves as the Vice Chairperson of the House Ways and Means Committee. Pictured are (left to right): Bill Kattmann; Bill Badger, Sr; Rep. Crouch; and Carl Shepherd, IBA’s 1998 State President.
eral committee hearings on the importance of the legislation to the industry at a time when many are struggling to keep their doors open.
“This bill is a prime example of how the legislative process works,” said Rick Wajda, IBA’s Chief Executive Officer. “Advocates for affordable housing pitted against local units of government who did not want to lose tax revenue from the spec. house in their jurisdiction. Authors, sponsors and Committee Chairmen worked with the inhe Indiana Senate passed HB 1046, the spec. home bill, on March 22 by a margin of 43-5. It now heads erty taxes on the land, but 50 percent of the taxes on the structure would be exempt. This is a key piece of legislation for the housing industry as statewide building permits are down 70 percent from their peak in
IBA President Doug Miller, GMB, CGB, CGP, CAPS, (right), thanks Speaker of the House Brian Bosma for addressing the IBA Board. Bosma’s comments included as- sessment of the current climate and his re- solve to hammer out the details of the bud- get.
T
back to the House of Representatives for a concurrence motion.
House Bill 1046, authored by Rep.
Crouch (R-Evansville) in the House and sponsored by Senator Hershman (R-Buck Creek) in the Senate, provides a 50 percent property tax deduction to a residential builder for a single family residence, townhouse, or condominium that has never been occupied as a principal residence. Builders would continue to pay the prop-
IBA Past State President Kovich achieves Senior Life Director status on IBA Board
IBA Past State President David Kovich (second from right), discusses housing issues with legislative leaders at IBA’s recent legislative luncheon. Pictured are (left to right): Wesley Holdman (son of Senator Holdman); State Senator Holdman (R-Markle); Kovich; and State Senator Hershman (R-Buck Creek). Senator Hershman was the lead sponsor of HB 1046 dealing with a tax deduction for spec. homes and Senator Holdman was a co-sponsor.
the mid-2000s and would allow home builders to take the deduction on up to three homes for three assessment dates when the structure is fully assessed. terested parties to find a common ground and pass a piece of legislation. But that can only be accomplished if they are present to debate the issue.”
If the House fails to reach a quorum to conduct business, HB 1046 will not be eligible to be signed into law by Governor Daniels. The House must agree to the changes made in the Senate with a concurrence motion before it can be sent to the Governor’s Office for signature into law. As of the date of printing, most House Demo-
IBA would like to thank Representative
Crouch and Senator Hershman for authoring and sponsoring the bill as well as Representative Cheatham, Representative Clere, Representative Cherry, Representative Morris, Senator Banks, Senator Becker, Senator Broden, Senator Alting, Senator Holdman and Senator Zakas for going on the bill as co-authors and sponsors and to Chairman Kenley and Chairman Espich for hearing the bill in their respective committees.
IBA President Doug Miller, GMB, CGB, CGP, CAPS, (left), presents IBA Past State President David Kovich, GMB, CAPS, CGP, with a blazer, signifying his accommplishment of achieving Senior Life Director status on the IBA Board. The sta- tus is awarded for attending 80 board meet- ings.
IBA will update members on the status of the legislation as the Indiana General Assembly approaches its targeted completion date of April 29.
- Page 2, Indiana Builder News
- March / April, 2011
Use your network to be successful
Indiana Builder
News
s I draft these comments, the first day of spring 2011 is on the horizon. With the beginning of lent a uled meetings with, providing accurate, well-defined comments and responses to the questions posed. This event is the perfect example of democracy in action and a vivid illustration of the importance of each of you being involved.
President’s Message
A
few weeks back, the religious calendar takes on a new meaning as the year moves forward. We use this season to review life as we look forward to Easter and the promise of rebirth! Regardless of age, spring and the promise of warm weather, flowers and green grass evokes anticipation and excitement. As I age, this season especially sparks the youth within.
By Doug Miller,
GMB, CGB, CGP, CAPS D.L. Miller Construction,
Elkhart
Official publication of the
Indiana BuildersAssociation, Inc.
101 W. Ohio St., Ste. 1111 Indianapolis, IN 46204
(800) 377-6334
At a recent event, a comment was made asking for a response to discern if a “silver bullet” exists for rescuing housing and driving our industry to a faster recovery. I must admit, a chuckle developed inside. I have asked myself this question many times. This writing supports the response provided on that occasion. The “silver bullet” is possessed by each member. Simply put; be involved, work 15 minutes longer, don’t give up, commit to be part of a larger team! Positive results will manifest themselves!
I suspect that Rick will have several call to action alerts in the near future regarding the spec home bill and NAHB will have similar action alerts for the credit issue and GSE reform. I ask that you take the time to respond. It is essential that we do our part in the process. As this year progresses, housing will continue to be one of the hot topics of discussion. Let it be. The tools exist to help each of us get the job done. Our network of business associates, our local builders’ associations, IBA, NAHB, and most importantly, you, have the knowledge, skills and perseverance to make this year successful! DON’T GIVE UP!
President,
Indiana Builder s A ssociation
(317) 917-1100 Local
(317) 917-0335 FAX www.BuildIndiana.org [email protected]
Housing typically rises out of its’ winter slumber this season; this year appears to follow history. Granted, housing has not hit the ground running, but it is moving forward. Pace varies from community to community; but phones are ringing and appointments are being made. Weather, natural disasters and the economy still impact buying decisions, the work load is erratic but with gaining consistency. March has been busy for IBA. The statehouse is in full swing, members attended the first state committee and board meetings of the year, the IBA legislative conference was hugely successful and nearly a dozen members who attended NAHB’s legislative conference conferred with our members of Congress to bend their ears on topics including AD&C credit, the viability of GSE’s and the future of housing. My amazement continues to peak when I receive Rick’s legislative update; time and again I am reminded that at the founding of this federation the importance of being involved in the process of law-making as it impacts housing was and remains the number one priority. As members, professionals and experienced experts, you are part of the process in your communities on a day to day basis. You have at your fingertips, access to assistance from your local builders association, IBA and NAHB to provide guidance, knowledge and tools to “move housing forward”. meeting. His assessment of the current climate was one of frustration, currently unable to do the work required for the citizens of Indiana, but confirmed his resolve to hammer out the details of the budget. Speaker Bosma is refreshing, guided by common sense and a clear vision for Indiana while affirming his desire to work with those in opposition. Mike Bell, Matt Lancia, Andy Place, Sr., Dennis Spidel, Donnie Stash, Larry Swank, Lance Swank, Will Wright, RickWajda, and I exercised the opportunity to participate with other NAHB members, approximately 500 in total, at Leg-Con in Washington D.C. I was impressed at the level of organization NAHB implemented in drawing this event together; coordinating the briefing of the attendees, the leave-behind material that reinforced the spoken message and the prioritizing of those messages.
All six issues published on-line bi-monthly & in hard copy.
Advertising rates available upon request.
This publication will not knowingly accept any ad- vertisement that is in violation of the law. Inclusion of an advertisement and/or article does NOT indi- cate approval or endorsement of the product, ser- vice, or opinion by Indiana Builders Association.
Senior Officers
President Doug Miller, GMB, CGB, CAPS, CGP
Vice President Will Wright
Treasurer Greg Furnish, CGP
Secretary Tom Mullen, MIRM, CMP, CGB, CGP
Builder Area Vice Presidents
Area 1 Jim Pressel, [email protected] Area 2 Linda Rogers, [email protected]
Area 3 Tina Bernacchi,
The Indiana group was able to meet with seven of the eight representatives we sched-
[email protected]
Area 4 State Rep. Heath VanNatter, CGP [email protected]
Area 5 Pat Richard, CGB, CGP [email protected]
Area 6 Jim Klotz, [email protected] Area 7 Ryan Baker, GMB, CGB, CGP [email protected]
Area 8 Tom Fuller, GMB, CGB, CGP, CAPS, [email protected]
Area 9 Dan Losekamp, CGB, CAPS, CGP, [email protected]
Area 10 Ken Phillips, CGR, CAPS, CGP, CGB, [email protected]
God’s blessings on our industry in 2011.
Associate Area Vice Presidents
Area 1 Hal Kemmerer, CGP,
Thank you to the chairmen, vice chairmen, committee members, directors and IBA staff who made our first meeting of 2011 a successful event. The Legislative Conference kicked off the event, marked by the largest attendance by members since the event began. Our representatives turned out in equally large numbers; a great response given the context of the current climate at the Statehouse. I reiterate a previous comment; this is a freedom we enjoy and as citizens we cannot take it for granted!
[email protected]
Area 2 Lori Lewis, [email protected] Area 3 Tim Eckert, [email protected] Area 4 Tom Slater, [email protected] Area 5 Luckie Jennings, [email protected]
Area 6 Bill O’Gorman, [email protected]
IBA Board Parlimentarian
Elizabeth Hobbs
Indiana’s National Leadership
NAHB State Representative Mike Bell, GMB, CGB, CGR, CAPS, CGP
National Director Doug Miller, GMB, CGB, CAPS, CGP Associate National Director John Linn
NAHB BUILD-PAC Trustees
Andy Place, Sr., CGB, CGP,
Howard Kellman, the voice of the Indianapolis Indians, delivered a motivational message centered on the word “effort”. Howard pointed out that successful people typically give 15 more minutes effort at their chosen vocation than those that don’t succeed at a higher level. Kind of a sobering thought if you think about the impact it can have on our day, our family, our business and the rebound of our industry. Although his delivery was punctuated with humor, the message was simple - “don’t give up”! I believe the perfect message for housing professionals at the perfect time.
[email protected]
Heath VanNatter, CGP, [email protected]
Staff & Consultants
Rick Wajda, Chief Executive Officer
Chief Lobbyist - [email protected]
Cindy Bussell, Chief Operating Officer
Publisher - [email protected]
Carlie Hopper, Regulatory Affairs Director
Gretchen White, Government Affairs Director
Heather Sturgeon, Information Coordinator
Speaker of the House Brian Bosma presented the keynote comments at IBA’s Board
A. William Carson, Chair. Emeritus of Board
- March / April , 2011
- Indiana Builder News, Page 3
The need for the minority party to return
- quorum.
- he Indiana GeneralAssembly has a
history of the minority party walking out in protest to legislation it formal censure. Media reports speculate
- there is just one remaining issue on Project
- Members of the majority party in both
chambers are attempting to salvage important pieces of legislation but ultimately the outcome of the legislative session relies on the members of the minority party to return. The regular session must end no later than
11:59 p.m. on April 29 and if members of the General Assembly fail to pass a budget the Governor will be forced to call a special session.
T
Proactive Politics
Labor Agreements but it is unknown when members may return. Across the hall from the House chamber views as harmful to its constituency. Walking out, or refusing to return to consider pending legislation, is used in instances where the minority party wants to make a point on their opposition to proposed legislation or support of an issue not being heard by the majority party. This legislative session the Republicans control the Governor’s office and the results of last November’s election put the Republicans in control of the House of Representatives, as well as widened the Republican control in the Senate. Therefore many suspected the minority party in the House, Democrats, could walkout when discussing the state’s two-year budget and redrawing the district lines but this year’s walkout was over neither issue.
By Gretchen White,
the Senate is taking testimony and working
Governmen t A ffairs
on a budget which could be inserted into a House bill that was sent to them prior to the walkout. The Senate is also holding committee hearings and floor votes on pending legislation to keep the process moving. If a bill is not amended in the opposite chamber it can proceed directly to the Governor’s desk. If a bill is amended in the opposite chamber the bill’s primary author must file a concurrence to send it to the Governor or a dissent motion which sends the bill to conference committee - both are considered formal acts of business and will require a
Director,
Indiana Builder s A ssociation
have tried to compel members to return to the Statehouse where amendments can be considered and debate on the House floor can occur.
Hopefully by the time this newspaper goes to print all 100 members of the House are back in session but nonetheless a new precedent has been set for future walkouts and because both parties feel strongly in their stance neither will want you to forget about this walkout or issues surrounding it during the 2012 elections.
Absent House Democrats are being fined
$350 per day, are not receiving per diem (money typically given to legislators during session on top of their base pay), reimbursements for expenses, and may face a
House Democrats were excused for caucus on Monday, February 21 and never returned. On Tuesday, February 22 caucus members went to Urbana, Illinois. The Indiana General Assembly has been brought to a standstill over the past five weeks but leaders in both chambers are now trying to salvage key pieces of legislation, efforts that will ultimately require the minority party’s return. Wisconsin experienced a similar walkout this year, which ironically also included legislators seeking refuge in Illinois, although their General Assembly has rules which allow them to conduct business without a quorum when voting on items that do not include a fiscal impact and ended the legislative standstill.
One House,
One Lot, One Sale
Indiana’s rules are different and require that a quorum (67 of the 100 Representatives) be present before conducting official business. The Indiana House is currently comprised of 60 Republicans and 40 Democrats. Representative Steve Stemler (D- Jeffersonville) has stayed on principle throughout the walkout and the Democrat caucus sends two members to the Statehouse daily to ensure no rules are being broken and that Republicans adhere to the lack of a quorum. Even with the 60 Republican members plus those three Democrats the House is still short of the needed 67 members. Without a quorum the House has been unable to fulfill their constitutional duty of passing a budget or of taking action on any other pending piece of legislation.
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Typically the walkouts end after some sort of an agreement has been reached or after the minority party feels their point has been made. This walkout, though originally reported to be solely about the right to work bill, is reported to be about eleven pieces of legislation which include the right to work bill and others impacting labor issues as well as education reform. It would be hard to believe anyone could have forecasted a walkout similar to today’s situation with members of the minority party leaving the state or staying out for more than one month. While there has been some talk and movement on some of the bills in contention among Speaker of the House Brian Bosma (R-Indianapolis) and Minority Leader B. Patrick Bauer (D-South Bend), Republicans
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- Page 4, Indiana Builder News
- March / April, 2011
10 strategies for improving your chances of getting a fair appraisal
Receiving accurate values for new homes from wary lenders in an REO-saturated market demands a builder’s attention to the process