BIA Advocacy Update

2021 IECC requirements for HUD and USDA-financed housing

In response to the 2021 IECC requirements for newly constructed homes financed by HUD and the USDA, NAHB and some lawmakers are working diligently to fight it. According to Home Innovation Research Labs, compliance with the 2021 IECC can add $22,572 to the price of a new home, but in practice, home builders have estimated increased costs of up to $31,000. Furthermore, it can take as long as 90 years for home owners to see a payback on this investment.

In addition to negatively impacting potential home buyers, these increased requirements and higher costs stemming from the stringent 2021 IECC can result in decreased production and longer permitting and construction times, further exacerbating housing affordability challenges.

U.S. Rep. Kelly Armstrong is a co-sponsor of introduced legislation that would allow Congress to overturn the rule submitted by the Department of Housing and Urban Development and the Department of Agriculture relating to “Final Determination: Adoption of Energy Efficiency Standards for New Construction of HUD- and USDA-Financed Housing” (89 Fed. Reg. 33112 (April 26, 2024)).

You can view the bill here. 

We encourage you to reach out to U.S. Senators Hoeven and Cramer to urge them to support. You can do so here:https://builderlink.org/take-action-now/. 

NAHB Chairman, Carl Harris recently testified, urging lawmakers to cosponsor the bill above.

Read more about the work being done on Capitol Hill here. 

New overtime rule effective as of July 1, 2024, NAHB challenges

Under the Fair Labor Standards Act (FLSA), employees must be paid overtime wages for time worked beyond 40 hours each week. However, employees who perform executive, administrative or professional duties are exempt from the overtime pay requirements under the FLSA.

To be exempt, the employee must:

• Receive a salary that doesn't vary based on the quantity or quality of their work
• Receive a salary above an established minimum amount
• Perform primarily executive, administrative or professional duties.

Under the new rule, effective July 1, 2024, the salary threshold will increase from $35,568 to $43,888, and then to $58,656 on Jan. 1, 2025, a nearly 65% increase from the current salary threshold. Beginning July 1, 2027, salary levels will increase every three years automatically using updated wage data,  without a notice and comment period.

In response, NAHB joined the coalition and lawsuit against the Department of Labor from exempting itself from the notice and comment process which sets a precedent for other agencies. 

One of the main reasons NAHB opposes the overtime rule, is that it goes against the initial intent of the overtime exemption, which is to exempt employees that are in executive, administrative and professional jobs from overtime pay requirements. It also will have a negative impact on housing affordability. 

Property tax measure on November ballot: Keep it Local update

The North Dakota Secretary of State’s Office has announced the petition signatures have been verified. The measure to eliminate property taxes in North Dakota will be on the ballot for the General Election on Nov. 5, 2024. 

You can view the measure here.

As of Aug. 2, the Keep it Local coalition, opposed to the measure, has grown to 73 members. BIA-RRV is one of these members. 

For educational information and to see a list of the organizations that are part of the coalition, go to keepitlocalnd.org. 

North Dakota Association of Builders Summer Social and Board Meeting

BIA-RRV leadership met up with other leaders from around the state recently at NDAB's summer social and board meeting in Grand Forks, N.D.

We were joined by special guest, Alicia Huey, immediate past chairman for NAHB. Alicia spoke about what the national association can do for each of us locally.

Above: Alicia Huey, NAHB's 2024 Immediate Past Chairman and custom home builder from Birmingham, AL.

Your membership "MEANs" something:

Money: The association should either make you or save you money. 

Education: There are many great education resources available to you through the association. If you have questions on how to access them, contact Elizabeth Kosel. 

Advocacy: NAHB is on Capitol Hill in Washington, D.C. advocating on behalf of you daily. They also assist local and state associations with our grassroots efforts. 

Networking: NAHB is there to connect you with other members. When you go to a national or local meeting, you get the opportunity to meet with others who are going through the same challenges as you. 

The board meeting featured additional guests that included Heather Voorman, NAHB's assistant vice president of government affairs, Jon Godfread, N.D. insurance commissioner and James Schmidt, exective director for the North Dakota state electrical board. All gave timely and helpful information, especially as we look to an upcoming legislative session.