The Builder Alert is an exclusive online publication for members of the Home Builders Association of Fargo-Moorhead. The Builder Alert is a way to inform our members of the hot topics that your industry is facing, exclusive member-only events and classes tailored to your needs.
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| Final IRC hearings on sprinkler mandate | |
| Federal housing tax credit | NDAB legislative training for members |
| Fargo releases roofer registration | Download helpful guides and drawings |
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| Fargo Flood Protection Update FEMA releases preliminary maps Click to view the preliminary FEMA floodplain map of North Fargo, South Fargo, and Moorhead. The cost of flood insurance can be a burden to homeowners and potential homeowners, so it is important to understand how much it costs and for how long this insurance will be required. According to the National Flood Insurance Program’s Web site, www.floodsmart.gov, to insure a $150,000 home (just the structure, no contents of the home) it would cost an estimated $1,122 annually. To insure up to $50,000 worth of contents in your home it would cost an additional $590 annually. Together this works out to be an additional $143 a month. The exact timeline for when the requirement for flood insurance will be in effect is only somewhat defined. FEMA will officially release the preliminary maps in September or October, followed by a 90 day comment period. It is then estimated that the map will be finalized one year after the preliminary one was released. As soon as the map is finalized, all buildings in the flood plain with mortgages will be required to obtain flood insurance. Flood insurance will have to be maintained until the structure is no longer in the flood plain or until the mortgage is paid off. The City of Fargo currently plans to start construction in the summer of 2009 on a $100 million protection plan with the goal to remove as many buildings as possible from the flood plain, thereby removing the insurance requirement as well. The construction of the new protection is not estimated to be functionally complete until spring of 2011 with a final completion estimated in the summer of 2012. As soon as the protection is functional in 2011, Fargo will ask FEMA to certify the protection and issue a new map. The city estimates this to be done sometime in 2012. There are several variables, but this could mean the timeline for the insurance requirement could be over two years from fall 2009 – sometime in 2012 when FEMA issues a new map. Going back to the $150,000 home example: the total cost for flood insurance until the completion of the project is unknown, but assuming at least a two-year time frame, the cost would be at least $3,432 for that home (23 months at $143 a month). Of course, the homeowner will also likely be assessed an amount for the construction of protection plan, but in the long run, the cost of the insurance far outweighs the cost of the protection. One example cited in The Forum showed a property owner paying flood insurance for the next 20 years would cost $30,000, while paying assessments for the flood protection over a 25 year period would only cost $8,125. This $22,000 is a vast savings that would just get larger the further you extended out the insurance costs. The exact assessed costs for each property are still unknown but there is a link to an estimator at the end of this article if you are looking ahead at your own costs. There are a couple of ways to save money on the upcoming insurance requirements. First, because Fargo has been an active participant in encouraging flood plain management it qualifies for a 15 percent discount on flood insurance for all buildings in its city limits. This discount is called CRS or a Community Rating System. Moorhead is also working on obtaining this status. The discount is automatic to all Fargo residents; there is no special request needed to receive it. Another way to save on flood insurance is through “grandfathering”. The basic premise behind this is, that if you are a current policy holder, you can maintain a cheaper premium than if you applied for a policy after the release of the new maps and after being placed in a higher risk flood area. There are several specifics to qualify for this discount, but it can amount to a large savings if you plan ahead. When the preliminary maps are released in September, and if your home is in the new floodplain, it would be wise to call your insurance agent and ask about grandfathering and when the best time would be to take out the policy. This little bit of foresight can save a lot of money. The HBA has a detailed flowchart available to help explain if you qualify for grandfathering. Fargo picks protection plan On July 14, the Fargo city commission voted to move forward with a preferred plan for the Southside Flood Project. Of the several available options, the Wild Rice Levee alternative was chosen as the best available. The city commission did not decide on a final funding method nor did it decide on several additional options that could coincide with the Wild Rice Levee such as the Wild Rice River bypass which would protect an additional swath of land. Click to view the map of the Wild Rice Levee alternative. The city Web site also has an estimated calculation on what each plan will cost you in special assessments based upon your home address. (This preliminary database only includes properties west of University Drive and is based on SE Cass WRD preliminary formula for assessments. This formula is under revision. If you are not in the database you should not assume that you will not be assessed as the final project alignment will determine who is assessed.) This estimator can be found at the city’s Web site at http://apps.cityoffargo.com/engineering/floodcontrolestimate/. For more information on flood insurance, please visit http://floodsmart.gov. |
Final IRC hearings on sprinkler mandate The National Association of Home Builders once again faces a strong push to mandate sprinklers in the International Residential Code (IRC). The proposed code changes will be considered and voted on at the International Code Council (ICC) Final Action Hearings scheduled for Sept. 17-23 in Minneapolis. The final vote will be decided by building and fire officials from across the country. This will be the final vote before the publishing of the 2009 ICC code books. Sprinkler advocates are attempting to sway the outcome in their favor by recruiting large numbers of fire officials to attend the hearings and vote in favor of mandatory requirements, regardless of the fact the need for sprinklers has never been substantiated. To ensure that the interests of building officials, home builders and home buyers are adequately represented at the hearings, it is critical to get more building code and other public officials who are designated voting representatives and opposed to mandates to attend the final hearings. Because of this, the HBA has been meeting with area building officials to discuss the upcoming ICC hearings and to advocate against mandating sprinklers in single family homes. |
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After months of intensive lobbying by the National Association of Home Builders, the housing stimulus package was signed into law. The centerpiece of the housing bill is a temporary, $7,500 first-time home buyer tax credit for the purchase of any home. The tax credit can be used for a home sale closing on or after April 9, 2008, and before July 1, 2009. It is expected to provide a significant financial incentive for home buyers. For details and a set of comprehensive questions and answers about how the credit works, and how consumers can take advantage of it, please visit www.federalhousingtaxcredit.com. This milestone legislation will help provide an enormous boost to the housing industry nationwide in the form of a tax credit for first-time home buyers. It will also provide much-needed measures that will improve mortgage liquidity, foster refinancing of troubled loans and expand the supply of affordable rental housing. |
NDAB legislative training for members The North Dakota Association of Builders is hosting a legislative training for members Oct. 9 in Fargo. The training is to help members feel more familiar and comfortable with the legislative process with the goal of creating a stronger grassroots support for the association’s legislative agenda. This grassroots legislative action could be anything from calling your local legislators to traveling to Bismarck to testify on an industry-related bill. The association’s political strength relies on the voice of its membership and this legislative training it meant to strengthen that voice. The training will cover a range of topics including the basics of NDAB’s government affairs program, how a bill becomes a law, how to contact legislators, to visiting the capitol and testifying on a bill. The training will also feature a question and answer session with local legislators. If you would like to take part in the legislative training please call the HBA at (701) 232-5846 or e-mail rocky@hbafm.com. |
Fargo releases roofer registration The City of Fargo has finalized its roofer registration. If you are doing any work repairing roofs from last fall's hail storm or any other reroofing activities, you need to register with the city of Fargo. You can register at the city auditor’s office downtown. After a large hail storm damaged thousands of roofs in south Fargo last fall, the city saw a need for an ordinance to register reroofing companies doing work locally. The city worked closely with the HBA to make sure the ordinance did not adversely affect the good business being done by so many local roofers but, at the same time, craft an ordinance that gives some protection to consumers. The ordinance requires reroofers to pay an annual fee with the city, have a North Dakota state contractor’s license, proof of general liability insurance, proof of workers compensation insurance and, in the case of being a transient merchant, have a surety bond of not less than $10,000. The ordinance’s addition of a surety bond for transient merchants was meant to protect the consumer from storm chasers who might not be of the highest quality and professionalism. This ordinance is meant to give a level of protection by verifying the business and insurance of all reroofers, but goes one step further to protect consumers against any possible issues that might arise with out-of-town businesses by the surety bond requirement. To download a copy of the ordinance click here. |
Download helpful guides and drawings This section will feature helpful brochures and detailed guides that may assist you with the latest change in regulations.
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