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Pegging the Value of Membership
by Teri Scharosch, Editor, Builders Magazine
By now, all of us are familiar with the difficulties our industry is encountering with appraisals. Most will agree that the value placed on homes and properties nationwide—and perhaps more so here in northern Nevada—is currently open to dispute. The artificially low valuations have harmed our ability to build, to get loans to construct, to refinance the homes we’re living in. However, there’s one valuation that should be undisputed if you’re involved in the building industry in any way: the value of joining and supporting the Builders Association of Northern Nevada (BANN).
Let’s face it—in today’s tough economic climate, many of the decisions we make come down to dollars and cents. It’s a reality we all understand, and one we all participate in. However, those of you reading this know by now that construction and housing have always been convenient targets for raising revenues and taxes. It doesn’t matter that the industry is against the ropes; many of the proposals that are now being contemplated would affect us in the not-so-distant future—just when we’re trying to get back on our feet and hire crews and make a living.
The Main Premise
Consider that one of the primary reasons for an association’s existence is to unite the voices of many with similar interests and needs. For those in the building industry, the Builders Association of Northern Nevada IS that voice. The association staff and its many volunteers sit on committees, focus groups, blue ribbon studies and attend meetings where the hard line decisions that affect housing and construction are made. We sit where you would want to sit if you had the time and energy. Remember—your dues investment pays for the staff that speaks for you.
The Here and Now
Do you ever wonder why you should renew your association membership? Or, if you aren’t presently a member, why you should invest in BANN membership? Consider these recent tangible examples of what our industry would face if BANN had not taken a position of advocacy for our industry:
? Map Extensions: Developers spend thousands of dollars in fees to file subdivision maps. During this time of recession, while things are at a standstill, their 2-year map approvals were approaching expiration and they were faced with having to refile maps and re-pay fees. BANN, in cooperation with Washoe County, led a successful charge for a 4 year extension on map approvals. Conservative estimates of savings to the industry over just the next few years approach $500,000 since the maps will no longer expire as quickly.
? Road Impact Fees: The Regional Transportation Commission had proposed an increase of up to $10,000 per single family unit. BANN successfully developed arguments against such a precipitous increase, succeeded in reducing the fee to $3,800, and agreed to participate in studies that will further define the fee in the future. Cost savings if just 500 homes are built this year would be approximately $3 million. In a more normal year, savings for 2,000 homes would be $12 million.
? Building Fees: BANN and its representatives have encouraged local jurisdictions not to increase fees during this downturn, even if ordinances or legislation would allow them to do so. Without our pressure, these fee increases would have cost the industry millions. Cost savings this year alone are in the neighborhood of about $500,000.
? Mandatory Fire Sprinklers: The new code (2009 version) mandates sprinklers in all new homes and some additions. Through extensive lobbying efforts, BANN succeeded in convincing local jurisdictions not to adopt the 2009 Code until at least 2012. At a conservative estimate of $7,000 to sprinkler a home, over a 3 year period this intervention alone will save the industry and local homebuyers $21 million if just 1,000 homes a year are built. BANN will continue to work with building and fire departments to further mitigate this requirement during this 3 year period.
? Wetlands and Drainage: We asked that Reno organize a committee with BANN staff and volunteers to add more flexibility and logic to the design applications under Chapter 18. While the committee is still meeting, it is anticipated that a successful outcome could generate more than $500,000 in savings over the next several years.
? Contractor’s Board Bonding Limits: The Contractor’s Board is considering bonding limit increased of 400% unless we are successful in moderating the increase. If we are successful in obtaining a lesser increase—say 200% instead of 400%--the savings to a representative 1,000 contractors would total nearly $2 million.
? Impact Fees: BANN is actively communicating with local jurisdictions to exercise good judgment in the application of new fees. Park fees could double, police and fire fees could be applied, and an exaction process (“voluntary dedications”) are still in place. Some have pegged the jurisdictions’ proposals in the $100 million range—all to be paid by our industry if they are successful. Cost savings to the industry from our involvement could very easily approach $20 million.
The bottom line: Total savings generated from BANN’s involvement in just these issues alone are estimated to range from $4,250,000 to nearly $50 million. Now compare—where else will an investment of approximately $75 a month (the cost of your dues to BANN) generate this kind of savings to an industry? Not a builder? Think these fee savings don’t apply to you? If you’re in construction as a subcontractor, a supplier, or an ancillary business that depends on construction, then you have a vested interest in assuring that builders can continue to build—profitably.
There’s More
Couple these savings and advocacy efforts with the tangibles you receive as a BANN member: a group health insurance program that’s second-to-none, offering the widest array of program choices available in Nevada today, discounts on your workers’ compensation, special employee benefits programs, office supply discounts, gym memberships, and more.
Throw in industry education that’s designed to keep you abreast of industry trends, or to train you in ways you can set yourself apart from your competition with special designations that demonstrate your professionalism.
Now add in networking opportunities…recognition through award programs…community involvement and support…charitable giving.
Nowhere else will your dues investment generate these kinds of returns. You owe it to yourself—no, you owe it to your industry—to support the association that speaks for you.
Builders Association of Northern Nevada ? 775-329-4611
