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Summer 2016 Parade of Homes Design Trends New Insurance Coverage for CAHB Members 2016 Voter Information PAGE 20

2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

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Page 1: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

Summer 2016 | ICOLORADO BUILDER FORUM

Summer 2016

Parade of Homes Design Trends

New Insurance Coverage for CAHB Members

2016 Voter Information PAGE 20

Page 2: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

If the clothes make the man, what makes a house?

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Page 3: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

100 Rio Grande Blvd

Denver, CO 80223

303-592-1223

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• Specializing in Colorado Home Builder needs

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A Company

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Page 4: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

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Page 5: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

© 2016 Advanced Environmental Recycling Technologies, Inc. All trademarks are property of Advanced Environmental Recycling Technologies, Inc., unless otherwise noted. All rights reserved.

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Page 6: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

| Summer 2016 4 www.hbacolorado.com

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FeaturesColorado’s Issues: In this edition, we continue a series that explores the

issues facing Colorado CAHB members statewide.

20 Colorado 2016 Election Information By Mary Kay Hogan and Virginia Morrison Love

24 Affordable Housing By Kelly Smith

28 The CAHB/Western Pacific insurance package By Kelly Smith

6 CEO’s Letter: Scott Smith

8 Giving Back: This CAHB member created a new community resource

16 Capitol Corner: A look at the 2016 legislative session

32 Trends: See design trends at the Parade of Homes events statewide

38 NAHB Mid-year sessions

40 IBS 2017 is just around the corner

20

32

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Page 7: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

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Page 8: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

| Summer 2016 6 www.hbacolorado.com

www.hbacolorado.com

Summer 2016 vol. 20, no.3

Official Publication of the Colorado Association of Home Builders

1114 West 7th Avenue, Ste 205Denver, Colorado 80204

P: 303.691.CAHB (2242) www.hbacolorado.com

Dedicated to the advancement of the home building indus-try, Colorado Builder Forum is published four times a year for members of the Colorado Association of Home Builders. Copy-right ©2015 by CAHB. No material may be reproduced without the express permission of CAHB. Acceptances of advertise-ment in Colorado Builder Forum do not imply endorsement or approval of the product or service advertised.

6334 S Racine Circle, Suite 200 Centennial, CO 80111

303-502-2515 www.AssociationMediaPartners.com

PUBLISHER Amy Hamm

303-502-2520 [email protected]

EDITOR Kelly Smith

[email protected]

DIRECTOR OF SALES Martha Dickenson 303-502-2518

[email protected]

ART DIRECTOR Brian Gilbert

[email protected]

WE MAKE PRINT & ONLINE EASY

CEO Letter

CAHB EXECUTIVE COMMITTEE

Branson Haney 2016 Chairman

Bruce Rau 1st Vice Chair

Marc Towne 2nd Vice Chair

Mike Conger 3rd Vice Chair

Carolyn Mitchell Government Affairs Chairman

Mike Conger Political Funding Chair

Lindsey Morrow Communication Committee Chair

David McLain Chairman’s Appointment

Randy Case NAHB State Representative

ADVISORY

Scott Smith CEO

Jeff Whiton Executive Officers Council Chair

MANY FACTORS ARE BEHIND the high cost of housing in Colo-rado. In the previous column, I mentioned supply constraints, labor shortages, regulations, delays and the litigation environment.

Impact and permit fees have become a significant cost factor. A mounting plethora of fees are added to the production of housing, and now can add up to over $50,000 per home in areas in the Front Range. Fees are set and collected for water taps, sanitary sewer, storm drainage, building permits, transportation, parks, school land, EMS

and others. Little or no thought is put in to the resulting home price impacts of the individual or collective fees. Using simple math, $50,000 in fees results requires a home priced at $200,000 just to cover the fees, before lot acquisition. With lots priced at over $110,000 it’s easy to see why the median new home price is now over $500,000.

To add insult to injury, impact fees are the most expensive financing technique to the home buyer to provide necessary infrastructure. Lower interest tax exempt bonding methods as well as available tax deductions by the homeowner for bond repayment are bypassed. Impact fees are not a “pass through” either, they actually add an average of 137% of the fee to the price of the house (NAHB research data.)

The continual adoption of new building codes “raise the bar” for safety and energy improvements. Code updates are all well-intentioned; they are part of the cost picture. For example, cost-benefit analysis, including payback periods for increased energy codes, are regularly ignored in the code process.

Using recent NAHB research, increasing new home prices by $10K has the effect of pricing 13,698 households out of the new home market in the Denver MSA. It’s not just an academic exercise. As prices go up, home buyers have no choice but to accept less home, placing downward pressure on the existing home market. As households accept less home, the folks on the low end of the housing spectrum ultimately are squeezed out. This simply compounds the affordable housing situation.

Generally, the policymaker’s solutions makes the problem worse. Inclusionary zoning and affordable housing impact fees actually raise the overall cost of housing, thereby forcing more home purchase and rent decisions down, creating an “infinite loop” or “circular function.” There is no free lunch.

Local governments have the most power to make a difference. Fees should be appropriate, minimal and accountable. Public improvements should be financed with tax-favorable methods through special districts to the extent possible. Timeframes for land use approvals should be short and the land uses and densities identified on com-prehensive plans should be reliable. A reliable entitlements system is critical to private industry.

If we can help policy makers understand the cumulative effect and impact of deci-sions on the end cost of housing and allow the private market to do what it does best with competition, ingenuity and professionalism we can continue to meet the housing needs of the public.

Scott SmithCEO, CAHB

Part II: Why is the cost of housing so dang high?

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| Summer 2016 8 www.hbacolorado.com

Giving Back

STANDING ALONE IN a field of tall meadow grass, a magnificent red barn is framed by the distant Rocky Mountains. For over 100 years, the red barn has silently watched the world change. As the surrounding community of Goodpas-ture moved on, those years have taken a toll on this historic structure. Sitting just a few miles outside Beulah on Highway 78, Goodpasture was once home to the Pueblo County Fair. In the 1920s it had a mercantile, blacksmith shop, post office, Methodist church and a few houses. Nowadays, nothing is left except that battered red barn.

This is the point in the story in which the heroes enter. Sherri and Hamp Howey with Greenhorn Builders bought the 20-acre property. The barn was in-cluded and they began restoration on this American icon. What brought them to this remote location in southern Colora-do? Why purchase a barn that had been forgotten by time? A good story always starts at the beginning.

Sherrie Howey has a degree in forensic anthropology, “That’s an interesting degree to have has a homebuilder, I

know, but it’s a whole lot of fun,” she teases, “My favorite period is the Bronze Age. I like to study the old stuff.” Sherrie also owned a commercial insurance brokerage and wrote insurance for sawmills, lumber yards, truss manufacturers and heavy commercial operations. Hamp Howey was a fifth generation farmer in North Carolina, farming over 10,000 acres when they decided to move to Colorado.

A New AdventureTwenty-two years ago they visited friends in the Pueblo area, one of whom was an

architect who started putting ideas of homebuilding in the Howey’s heads. For Sher-rie and Hamp, Pueblo was an ideal place to work and live. A new adventure began

The Barn Greenhorn RebuiltA Pueblo builder gives back in a variety of ways, from providing laptops to African children to restoring an abandoned barn in their community

By Jamie McAfee Photos by Greenhorn Builders

Page 11: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

Acme Brick Is Your Source forQuality Outdoor Living Products.

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According to a Residential Landscape Architecture

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owners are looking to add outdoor spaces for

entertaining and recreation on their properties.

How will you capitalize on the move to out-

door living? See the experts at Acme Brick’s

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Acme carries all the materials you need to

build beautiful masonry enclosures for outdoor

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COLORADO BUILDER MAGAZINE FINAL 5/5/16 9:06 AM Page 1

Page 12: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

| Summer 2016 10 www.hbacolorado.com

Your Favorite Room Doesn’t Have

To Be IndoorsALL NEW VAULT DECKING

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PAGE 43

Giving Back

and Greenhorn Builders was born. The company is a long-time member of the Pueblo Association of Home Builders. Hamp served on the board of directors for several years, and Sherrie was treasur-er of the board in 2013, vice president in 2014 and president in 2015. In 2016, she is serving on the executive board as a past president.

Building distinctive custom homes in southern Colorado where quality over quantity is central to Greenhorn. “We focus on building with, not for, our clients. We tell them they are driving the bus; Greenhorn will keep you out of the ditch,” Sherrie explains. Greenhorn believes comfort is born of smaller scale and beautiful details. A small but mighty staff on Greenhorn’s team assists clients from start to finish, creating homes that are as unique as each client they serve.

Serve the CommunityThe Howey’s help their clients build

beautiful homes but as philanthropists they also serve their community. Through their foundation, Sherrie and Hamp started a Russian-American professional

Page 8: Goodpasture Barn, as the barn is known, stands under a bright blue Colorado sky This page: The extensive work was a labor of love for Greenhorn Builders

exchange with physicians and surgeons. The doctors were put into medical school rotations to collaborate with like-mind-ed colleagues across the world. This was such a success that the couple expanded their program to journalists, professors, teachers and school groups.

At the same time, Sherrie and Hamp started working with a remote village in Lesotho, Africa. They partnered with another organization that delivers laptops to the village children. While tending to herds for weeks at a time, children can work on academics. After the seventh grade, public education isn’t offered in Lesotho. Sherrie and Hamp award scholarships to kids with qualifying grade point averages so they may continue their tuition-based education. In addition to Russia and Lesotho, the couple part-

Page 13: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

Your Favorite Room Doesn’t Have

To Be IndoorsALL NEW VAULT DECKING

Deckorators.comGET THIS LOOK Deckorators Vault Dusk decking with CXT Pro black top rail, black post sleeves, cable railing and black Stylepoint post caps.

FOR INFORMATION

ON LOCAL

DECKORATORS

DEALERS, SEE

PAGE 43

Page 14: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

| Summer 2016 12 www.hbacolorado.com

C

M

Y

CM

MY

CY

CMY

K

StrucSure_CAHB_070116_exterior.ai 1 7/7/2016 3:00:19 PM

Giving Backners with a school for women in Kabul, Afghanistan. Using scholarships, they transfer women out of Kabul and into the United States to finish their educa-tion here. “Connecting people is what it’s all about. That first group that visited us from Russia was life-altering,” Sherrie explains. Connecting people and building community in remote locations is a reoc-curring theme with the Howey’s.

Original GloryAnd so our story turns back to that

huge, red barn in a distant southern Col-orado valley. Bringing people together is what Greenhorn and the Howey’s are all about. What better way to do that than to renovate a 100-year-old barn and use it for local fundraisers? The bones of the barn, the timber trusses and the roof were still in good shape but the foundation needed stabilization. Since people would be using the barn, four inches of concrete was poured over the 7,000 square feet of barn floor. New siding replaced the splintered, weathered exterior. Hours were spent

The barn had good bones, but was in need of a new floor and exterior siding

Page 15: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

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Page 16: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

| Summer 2016 14 www.hbacolorado.com

To determine if a home loan is available with yourLoanTracker features and to learn more, call me today!

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This information is for real estate and building professionals only and is not intended for consumer distribution. Availability may be affected by your mobile device’s coverage area.Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2015 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS1933879 Expires 06/2016

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Giving Back

wiring the barn, for this was the very first time it would have electricity. A kitchen was added for caterers to use and a fresh, bright coat of red paint restored the grand old barn back to its original glory.

Just two days after completing the renovations on the barn, an event was held to raise money for the Buelah EMT & Fire Department. The Beulah School of Arts and Science, Beulah Arts Council and numerous local companies will be holding events at the Goodpasture Barn as well. “We are thrilled the commu-nity wants to use it,” Sherrie explains. Repurposed as a gathering place for the locals, the bright red barn has a new lease on life. It is once again bringing people together thanks to Sherrie, Hamp and the team at Greenhorn Builders.

Now fully refurbished with new concrete flooring, siding, electricity and a large kitchen, the barn stands ready for community events

3 2 0 0 W a l n u t S t r e e t • D e n v e r , C o l o r a d o 8 0 2 0 53 0 3 . 2 9 2 . 3 5 5 0 • w w w . d e n h w . c o m

| C E L E B R A T I N G 7 0 Y E A R S |Y e s t e r d a y , T o d a y & T o m o r r o w

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3 2 0 0 W a l n u t S t r e e t • D e n v e r , C o l o r a d o 8 0 2 0 53 0 3 . 2 9 2 . 3 5 5 0 • w w w . d e n h w . c o m

| C E L E B R A T I N G 7 0 Y E A R S |Y e s t e r d a y , T o d a y & T o m o r r o w

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| Summer 2016 16 www.hbacolorado.com

Capitol Corner

THE 2016 LEGISLATIVE SESSION was extremely busy for CAHB. In total, CAHB closely followed 31 of the most im-portant bills to the homebuilding industry this session and kept tabs on dozens more. This report includes a synopsis of what happened at the Capitol this session on the issues of construction defects, special districts and inclusionary zoning.

HOMEBUILDING LEGISLATIVE ISSUESConstruction Defects

For a second year in a row, construc-tion defect reform proved to be a difficult issue for legislators and stakeholders to reach consensus. In a split legislature, leadership announced that without consensus, a bill was not going to be in-

Colorado General Assembly 2016 Wrap-UpBy Mary Kay Hogan and Virginia Morrison Love

troduced in 2016. The stakeholder group that CAHB was a party to worked hard on negotiations throughout the session to reach agreement on a variety of issues related to encouraging multi-family housing development by requiring notifi-cation and consent of impacted home-owners before a lawsuit could be filed. After talks broke down in the final days of this session, SB 213, a construction defect reform study bill, was introduced by Senator’s Mark Scheffel R-Castle Rock and Jessie Ulibarri D-Commerce City, and Representatives Jonathan Sing-er D-Longmont and Brian Delgrosso R- Loveland. The bill would have established a construction defect litigation study group to investigate CD litigation and create a report recommending a path

forward on the issue. Additionally, it would have established a pilot program in conjunction with the study group to implement any recommendations made at the end of the study.

The bill passed out of the Senate successfully in a matter of days, but came to a halt in the House. The proposed study committee was a far cry from what lawmakers had hoped would come out of the stakeholder negotiations. During SB 213’s hearing in the House State Affairs Committee, co-sponsors Minority Leader Brian Delgrosso and Rep. Singer both expressed frustration at the fact that the stakeholder negotiations failed to produce a more concrete solution. “I wish I could have brought you a more substantial bill than this,” Delgrosso said

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Summer 2016 | 17COLORADO BUILDER FORUM

while presenting SB 213 in committee. Despite bi-partisan sponsorship, the bill was killed, definitively putting an end to the possibility of addressing the CD issue at the legislature in 2016.

Looking forward, CAHB will focus on assisting in the defense of the Vallagio case now going to the Colorado Su-preme Court; this will be accomplished by drafting and signing onto an amicus brief, and assisting local chapters in passing or strengthening the local CD ordinances effort.

Other Notable BillsIn addition to construction defects,

there were several other bills of special importance to CAHB that covered special districts, inclusionary zoning and water issues. HB 1088, the first special districts bill we closely followed, would have given fire districts broad authority to levy impact fees on new development. When the bill’s sponsor Rep. Tim Dore, R-Elizabeth learned about our opposi-tion to his bill, he was open to working with CAHB on an amendment to clarify that fire districts were not given expand-ed authority to assess impact fees, but local governments are allowed to review capital needs with the developer and the fire district to implement fees for capital needs if necessary and to provide ade-quate fire protection. This was a compro-mise we could live with.

Visit the CAHB website and look for the link to a memo that further explains the effects of HB 1088.

SB 211 was another special districts bill of importance to us this year. On April 21, the Colorado Court of Appeals issued a decision related to the Land-mark project in Greenwood Village. The decision called into question the valid-ity of previously held elections for the vast majority of the 1,475 metropolitan districts in Colorado. The uncertainty and risk created by the decision imme-diately jeopardized existing and planned elections and financings throughout the state. Over $9 billion in local govern-ment debt issued in Colorado over the last 15 years could have been subject to challenge without the passage of SB 211.

The bill clarifies that all elections held prior to May 3, 2016 are deemed valid and are not subject to challenge based on the qualification of electors, unless the challenge was initiated before said date. There is an exemption to the blanket validation for elections held between January 1, 2012 and May 3, 2016 if the challenge also includes a state or federal constitutional claim. SB 211 passed both chambers unanimously, and local bond counsel agrees that its provisions will now allow them to issue clean bond letters for transactions related to these past elections.

Inclusionary zoning is a perennial issue that CAHB routinely opposes. Rep. Faith Winter D- Westminster intro-duced HB 1334 this year, which would have authorized the board of county commissioners of any county, by duly en-acted ordinances, to establish and create a program that implements inclusionary zoning within an unincorporated area of the county. We actively opposed the bill from the start and CAHB CEO Scott Smith testified against it when it came up for consideration in the Senate State Affairs Committee. The bill was killed in that committee on a final vote of 3-2 thanks in part to Smith’s testimony.

Natural ResourcesOverall, this session was quieter than last

year on both water and oil and gas issues. It wasn’t for a lack of introducing bills on these topics, we have several for each on our bill list, but instead most of these bills were killed in their first committee. To see several water and oil and gas bills as well as more legislation on other pertinent topics, please refer to appendix.

The FY 2016-17 BudgetThis session started out with a mixed

budgetary picture as state economists predicted growth in Colorado to con-tinue and at an increasing rate while simultaneously $373 million in proposed budget cuts loomed. By March it was clear that while Colorado’s economy has been largely resilient in the face of the oil and gas slowdown, it has and will continue to drag down the performance

of the rest of the economy. This year’s mid-session economic forecast from both Legislative Council and the Governor’s Office of State Planning and Budgeting predicted economic growth to contin-ue in 2016, but to be considerably less robust than in the prior years.

For the Legislature, the adjusted mid-session forecasts signaled that a decrease in General Fund Revenue (the money the legislature uses to fund government and balance the budget) was on the horizon. This set the Joint Budget Committee into action to perform what has been described by some as “fiscal gymnastics,” to avoid most massive budget cuts. This year’s budget bill, which clocks in at $27 billion total, passed through both chambers with broad bi-partisan support and was signed by the governor on May 3rd.

The final budget bill included a Gen-eral Fund appropriation of $11.1 billion for the 2016-2017 budget, preserved $150 million extra for transportation funding and maintained the state’s 6.5 percent required reserve. When it comes to educa-tion funding, the JBC was able to decrease the negative factor in K-12 spending by $24 million despite earlier projections that the legislature may allow the negative fac-tor to grow by $50 million in FY 16-17. Lawmakers also successfully averted a $20 million cut to higher education funding. “The Colorado General Assembly has a long history of setting aside disagree-ments that in other states would lead to acrimonious gridlock,” Governor John Hickenlooper said of the budget, adding, “This budget reflects the ability for people to work together.”

Hospital Provider FeeIn conjunction with this year’s long

bill, the Hospital Provider Fee bill HB 1420 and companion bill HB 1450 were the most consequential pieces of legisla-tion affecting the state’s budget.

Changing the Hospital Provider Fee (a per night/per patient fee charged to hospitals to supplement Medicaid funding and bring in more federal matching dollars) to an enterprise fund would remove those dollars from the TABOR spending limita-

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| Summer 2016 18 www.hbacolorado.com

Capitol Corner

tions and free up more funds to be spent on infrastructure, higher education, economic development and any other priorities.

CAHB supported HB 1420 along with most members of the business and higher education communities in Colora-do. During the last week of session the bill died in the Senate Appropriations Committee on a final vote of 2-3. We fully expect the bill to be back next year if Senate Leadership swings to the Dem-ocrats after the elections this fall.

2016 is an election year, and both the Speaker of the House and President of

BILL NUMBER TITLE POSITION, END STATUS SPONSORS SUMMARY

HB 1088 Fire Protection Dist. Impact Fee On New Development

CAHB neutral after amendments

5/5/16 – Sent to Governor

Rep. Dore/Sen. Roberts Increases interaction between local gov-ernments (counties and different special districts) in determining the appropriate amount of impact fees for fire services.

HB 1334 Inclusionary Zoning County Unincorporated Areas

CAHB Opposed

Killed, Senate State Affairs Committee

Rep. Winter/Sen. Hodge Would authorize the board of county commissioners to implement inclusion-ary zoning within an unincorporated area of the county.

HB 1420 CO Healthcare Affordability & Sustainability Enterprise

CAHB supported

Killed, Senate Finance Committee

Rep. Hullinghorst/ Sen. Crowder

Creates the Colorado Healthcare Affordability & Sustainability Enterprise with HCPF. Beginning FY 2016-17 the enterprise would be responsible for the collection of a new fee replacing the current Hospital Provider Fee. The bill then transfers all unexpended revenue from the Hospital Provider Fee to a cash fund the state can spend.

SB 211 Limit Certain Contests Past Special District Elections

CAHB top priority – support

Signed by the President of the Senate

Sen’s Cadman & Scheffel/Rep’s Hullinghorst & Duran

For special district elections conducted prior to 4/21/16 and on 5/3/16, this bill prohibits contesting the results of the election on the grounds that any person voting in the election was ineligible to vote and the qualification of any person elected to a special district is validated and may not be contested.

SB 213 Construction Defect Litigation Study Group

Bill introduced too late for position.

Killed, House State Affairs Committee

Sen’s Scheffel & Ulibarri/Rep’s Singer & Delgrosso

Would form a study group to study the issue of construction defects and make recommendations to the legislature on how to solve the issue.

the Senate are leaving due to term limits. With new leadership will come new com-mittee assignments in 2017, along with a potential shift in party leadership if either the Democratic House loses seats (they currently hold a 34-31 majority), or the Republican-led Senate loses its one seat majority. As evidenced by this summary, a split legislature is tremendously help-ful when defending against threatening legislation, but it creates obstacles when advocating proactively for the passage of a comprehensive policy change. We antici-pate that regardless of majority leadership,

the following issues will continue to be debated next session: water storage and conservation; construction defect liabili-ty; the process for forming metropolitan districts; the increased use of impact fees; the state health insurance exchange, and oil and gas development as it relates to surface development. CAHB is engaged in extensive legislative candidate outreach in order to educate new and returning members on matters of concern to the Association, so that legislators do not hear our position for the first time when a bill is read across the desk in January.

Page 21: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

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Page 22: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

| Summer 2016 20 www.hbacolorado.com

THE COLORADO SECRETARY OF State’s office (SOS) recently released information about the upcoming No-vember election and ballot initiatives. Coloradans in November could be decid-ing whether to allow local governments to ban oil and gas development, triple the taxes on a pack of cigarettes and require county clerks to send unaffiliated voters ballots for Republican and Democratic candidates during the primary election.

Several ballot measures met the petition signature deadline. The Secretary’s office has until Sept. 8 to conduct a five percent random sample of submitted signatures to determine whether the proposals meet the threshold to make the ballot. To get on the ballot, proponents need to submit 98,492 valid voter signatures; that number equates to five percent of the total votes cast for all candidates for Colorado Secretary of State in the last general election.

If at least 90 percent of the signatures from the random sample are deemed valid, the SOS will qualify the measure for the ballot. If under 90 percent are valid, the office needs to go through all of the signatures until they validate 98,492. Generally, a proponent turns in at least 200,000 signatures to make up for the margin of error. Many of these measures, including 78, did not turn in many signa-tures; it is likely that these measures will fail to qualify for the ballot.

Under Consideration: • Local government authority to regulate

oil-and-gas development: No. 75• Mandatory setback for oil/gas develop-

ment: No. 78• Primary elections: No. 98• Presidential primary election: No. 140• New cigarette and tobacco taxes: No. 143

Certified for Ballot:• Colorado state healthcare system: No. 69• Requirements for constitutional amend-

ments: No. 96• State minimum wage: No. 101

2016BALLOT

MEASURESTHE CAHB CONSIDERS RAMIFICATIONS OF CITIZEN’S INITIATIVES

By Mary Kay Hogan and Virginia Morrison Love

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Summer 2016 | 21COLORADO BUILDER FORUM

and to the system. Go to coloradans-forcoloradans.com to learn more about this proposal.

CAHB opposes proposed initiatives 75 and 78. The GAC heard from a representative from CFRR (Coloradans for Responsible Reform), a coalition of business interests that is opposing both 75 and 78. No. 75 would give local government’s priority authority over state rules and the work of the Oil and Gas task force with the Colorado Oil and Gas Commission over siting oil and gas de-velopment. Passage of this would trump a Colorado Supreme Court decision made earlier this year. This initiative has the additional consequence of granting local government’s broad authority over select businesses or industries and further erodes private property rights.

Initiative 78 requires a significant setback of 2,500 feet between oil and gas activity and an occupied structure. This computes out to 450 acres, or 70 percent of a square mile, that unnecessarily places the oil and gas industry at odds with the homebuilding industry. The setbacks either restrict oil and gas development, or housing is restricted due to existing oil and gas wells. This is a flat-out taking of surface development rights as well as mineral rights. The setback issue was

discussed extensively during the oil and gas working group mentioned above, and this degree of setback was not recom-mended, and far exceeds tested existing setback requirements. CAHB will be part of the campaign to defeat these measures, should the signatures be verified. Go to CFRR.com for more information.

CAHB supports Initiative 96. Known as the Raise the Bar campaign, it’s intended to make it more difficult to amend the Colorado constitution. Raise the Bar would make it much more difficult for future initiatives to make it on the ballot by re-quiring signatures from at least two percent of registered voters in each State Senate district, and voter approval of more than 55 percent of voters would need to approve a future measure for it to pass. Colorado has become a favorite location for large outside special interest groups to test market con-cepts to votes. It’s expensive and time-con-suming to raise funds to combat bad ideas that signature gatherers have managed to gather minimum signatures for.

In summary, the CAHB and the Governments Affairs Committee encourage members to vote NO on amendment 69, and initiatives 75 and 78, and supports 96. The success of your business and the statewide economic climate are in the balance.

THE POLITICAL FUNDING Committee of the CAHB is responsible for par-ticipating in the state elections for the legislature. The PFC considers many fac-tors before recommending endorsement and funding to support the endorsed candidates. The PFC makes two levels of recommendations; funding from the po-litical fund or the small donor committee.

GENERAL ELECTION 2016GET TO KNOW A LITTLE MORE ABOUT CANDIDATES IN HIGH-PRIORITY LEGISLATIVE RACES

By Mary Kay Hogan and Virginia Morrison Love

Be sure to read about further developments and analysis of these issues in the Fall 2016 issue of Colorado Builder, which will be out in late November.

House District 3: Katy Brown-RHouse District 3 encompasses Cherry

Hills Village and parts of Greenwood Village, Englewood and Sheridan. It’s comprised of 31 percent Republican, 32 percent Democrat, and 35 percent unaffil-iated. The seat is open due to current Rep. Daniel Kagan being term limited. Brown is a current Cherry Hills Village City

Council person and handily won her Re-publican primary with 73.7 percent of the vote. She has her own web design business with advanced degrees from MIT and is very favorable to business issues.

House District 17: Kit Roupe-RHD 17 covers south central Colorado

Springs. It’s comprised of 26 percent

• Medical aid in dying: No. 145• Amendment T would remove an excep-

tion to the prohibition of slavery that allows individuals to be held in involun-tary servitude if convicted of a crime.

• Amendment U would grant a property tax exemption for possessory interests whose value is $6,000 or less.

• $12 Minimum Wage Amendment: I-101

The Government Affairs Committee of the CAHB considers the support of, or opposition to, ballot initiatives and referred measures that can impact the industry. At the time of this writing, some initiatives were still in the signature verification process. CAHB recommends opposition to the following initiatives, should they qualify for the ballot:

Amendment 69, the Colorado state healthcare system initiative, referred to as “Colorado Care.” The amendment is a healthcare payment system designed to finance healthcare for Colorado residents partly through an additional 10 percent income tax on all Colorado income as well as new and significant payroll taxes. This amendment would create a new government entity that would collect over $28 billion and manage a single pay-er health care system for Colorado. This has been tried in only one state—New Hampshire, and that program has been terminated. This legislation would impact statewide employment, and would attract new, high cost medical users to Colorado

Page 24: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

| Summer 2016 22 www.hbacolorado.com www.BuildWithBMC.com

ENGLEWOOD 303.784.4210 or 303.784.4289

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BESTWoodland Cabinetry manufactures custom-built cabinetry with construction offered in an a la carte fashion, allowing a wide variety of modifications and upgrades to a very high level furniture quality. A vast array of door styles, finishes and distressing packages in 12 wood species, including rustic offerings, are available to create custom-looking kitchens.

Let BMC heLp you design your dreaM kitChen. Visit our showroom to speak with an in-house cabinet design specialist, who’ll help you through the complete design and cabinet selection process. We offer top-quality cabinetry in the latest styles and trends from industry-leading suppliers. And, with our custom cabinet solutions, you’ll get the price you need, plus all the options you want.

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Republican, 32 percent Democrat, and 38 percent unaffiliated. Roupe currently holds the seat she won from the previous Dem Representative Tony Exum, her current opponent. Roupe is a moderate who votes to match the district, while Exum voted heavily in favor of the unions and his caucus. Roupe is industry friendly, and is in favor of construction defect reform.

House District 31: Jessica Sandgren-RHouse District 31 covers Commerce

City. It’s comprised of 25 percent Repub-lican, 36 percent Democrat, and 37 per-cent unaffiliated. A Republican candidate lost this seat in 2014 by a few hundred votes. The seat is currently held by Rep. Joe Salazar, a very anti-business legislator who was the critical vote in killing con-struction defects reform, and has recently received significant funding by Bernie Sanders. Sandgren, a school teacher and moderate Republican, has been working hard to walk her district, but needs help. This is a key target race, and though it will not sway the House majority, her victory would send a strong message as Salazar opposes every legislative priority of the business community.

House District 59: J. Paul Brown-RHD 59 covers the far southwest corner

of the state. It’s comprised of 27 per-cent Republican, 31 percent Democrat, and 31 percent unaffiliated. Rep. J. Paul Brown currently holds this swing seat. He is a rancher. His opponent is Barbara McLachlan, wife of the previous Dem representative who Brown defeated in 2014. McLachlan is a retired school teacher. Brown has supported the bulk of the CAHB legislative priorities during his legislative tenure, and is a key voice on water issues that we have become more engaged in.

Senate District 19: Laura Woods-RSenate District 19 encompasses north-

ern Jefferson County. It’s comprised of 30 percent Republican, 31 percent Demo-crat, and 36 percent unaffiliated. Woods beat her current opponent, former Sena-tor Rachel Zenzinger by 47 percent to 46 percent, with 6 percent being bled off by a Libertarian candidate.

Woods has a background in small busi-ness owning a court reporting firm, and is a strong business vote. Zenzinger works for Colorado Educator Voice Fellowship, a teacher’s advocacy group, and is a mod-erate Dem and a former mayor. This is a pivotal swing seat for the Republicans to hold the Senate and maintain the narrow balance at the Legislature.

SD 25: Kevin Priola-RSD 25 is an open Adams County seat

currently held by term-limited Senator Mary Hodge. It’s comprised of 27 per-cent Republican, 34 percent Democrat, and 36 percent unaffiliated.

Current Rep. Priola will be facing for-mer Rep. Jenise May who lost her House seat in 2014 to Joann Windholz. Priola is a business friendly legislator and a hard campaigner. He is a strong proponent of private property rights and maintaining the agricultural property tax assessment designation. May is a moderate Dem, but rarely bucks her caucus.

SD 26: Nancy Doty-RSD 26 is an eastern Arapahoe County

seat currently held by term-limited Sen-ator Linda Newell. It’s comprised of 30 percent Republican, 33 percent Demo-crat, and 34 percent unaffiliated.

Doty is a current Arapahoe County Commissioner and former County Clerk with great name ID in the county and extensive business and financial back-ground. She was the state’s CFO for Governor Owens and has experience in banking and accounting. Current Rep. Dan Kagan is running against Commis-sioner Doty for the open Senate seat. Kagan has an extensive anti-business and anti-tort reform record in the House. This is also a key target seat in the Sen-ate. Doty needs financial help for her get out the vote campaign. Kagan was House Judiciary Chair, and will be well-funded from the Trial Lawyers Association.

SD 35: Larry Crowder-RSenator Crowder currently holds this

Senate district—the largest in the state—covering the entire south east portion of the state and critical to holding the Senate Republican Majority. It’s comprised of 36 percent Republican, 36 percent Demo-crat, and 25 percent unaffiliated. Senator Crowder is a very moderate Republican with a pro-business record. His oppo-nent, James Cassias, is the sheriff of Las Animas County.

The Political Funding Committee made the following endorsements and funding recommendations from the Committee for the American Dream political committee:

Other endorsements: HD 2: Alec Garnett-DHD 4: Dan Pabon-DHD 5: Crisanta Duran-DHD 7: James Coleman-DHD 6: Chris Hansen-DHD 8: Leslie Herrod-DHD 15: Dave Williams-RHD 22: Justin Everett-RHD 23: Chris Hadsall-RHD 25: Tim Leonard-RHD 26: Diane Mitsch-Bush-DHD 29: Tracy Kraft-Tharp-DHD 33: Matt Gray-DHD 34: Steve Lebsock-DHD 37: Cole Wist-RHD 38: Susan Beckman-RHD 41: Jovan Melton-DHD 50: Dave Young-DHD 51: Hugh McKean-RHD 52: Joann Ginal-DHD 53: Jeni Arndt-DHD 56: Phil Covarrubias-RHD 61: Millie Hamner-DHD 64: Kimmi Lewis-R

The election for the members of the state legislators continues to be very im-portant to advancing the CAHB legisla-tive priorities.

The association can invest significant time, money and resources to identifying and supporting candidates for office. This investment is wasted if you don’t VOTE. Review the ballot, know who your elect-ed officials are, participate in the process at all levels in the association but above all, VOTE.

Page 25: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

www.BuildWithBMC.com

ENGLEWOOD 303.784.4210 or 303.784.4289

LOVELAND 970.612.1045

COLOrADO spriNGs 719.219.3733

pUEBLO 719.423.2303

STUNNING KITCHENS by bMC.

GOODMerillat offers the best selection of stylish, quality products at a variety of price levels. Available in two series: Merillat Masterpiece® and Merillat Classic®, you can choose from sturdy engineered wood to solid wood construction. A wide variety of door styles are available with all standard wood species, colors and glazes, plus full-overlay doors.

BESTWoodland Cabinetry manufactures custom-built cabinetry with construction offered in an a la carte fashion, allowing a wide variety of modifications and upgrades to a very high level furniture quality. A vast array of door styles, finishes and distressing packages in 12 wood species, including rustic offerings, are available to create custom-looking kitchens.

Let BMC heLp you design your dreaM kitChen. Visit our showroom to speak with an in-house cabinet design specialist, who’ll help you through the complete design and cabinet selection process. We offer top-quality cabinetry in the latest styles and trends from industry-leading suppliers. And, with our custom cabinet solutions, you’ll get the price you need, plus all the options you want.

CoLorado kitChens designed By BMC with serviCes you Can Count on.•Accredited cabinet design specialists •Consistent lead times • Stable pricing •Delivery and installation

Photo courtesy Renovar Construction

Photo courtesy Renovar Construction

BETTERBellmont features full access, European or frameless cabinet designs with limited modifications. Multiple door styles and finishes are offered in all standard wood species, painted maple/MDF, and textured laminate. An upgraded plywood cabinet box with maple veneer interior is available, plus a wide assortment of trims and accent pieces.Photo courtesy Applehans Homes Photo courtesy Renovar Construction

Page 26: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

| Summer 2016 24 www.hbacolorado.com

AS WE’VE SEEN, there is a long list of difficulties and challenges for builders when it comes to affordable hous-ing issues. Read on to see how CAHB members are using their industry knowledge and creative resources to tackle this complex issue.

RESPONSEIt’s a sunny summer morning, and a small crowd has

gathered on an empty lot just east of Stapleton. One shov-elful of dirt later, and the work has officially begun on 165 new income-qualified townhomes in Stapleton’s Conser-vatory Green and Willow Park East neighborhoods. Over the next year, Thrive Builders will construct the Elements Collection; these homes will have two to three bedrooms, 1,213 to 1,330 square feet of living space and a starting price point of $172,900. They will offer the energy efficien-cy that award-winning Thrive is known for, including the potential for solar panels and zero energy ready features. The homes are being built in accordance with Denver’s Inclusionary Housing Ordinance, IHO, which requires development projects of 30 or more units to allocate 10% of the units as affordable.

MAKING IT HAPPEN

CAHB members and industry insiders offer a variety of responses to the challenges of

affordable housing

By Kelly Smith

IN A SERIES3rd

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Summer 2016 | 25COLORADO BUILDER FORUMPhoto courtesy of Thrive Home Builders

Page 28: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

| Summer 2016 26 www.hbacolorado.com

“When it comes to affordable, there’s always a gap between the cost of the homes that you build and the price peo-ple can afford to pay,” says Gene Myers, Thrive Builders owner and CEO.

“In affordable housing, who pays for the cost?” In Stapleton, Myers explains, the requirement to deliver affordable housing units falls on the developer. “They do it in the form of a subsidy on the lot price, and in other areas, that helps us make up the gap,” he says. Myers goes on to say that, “despite theoretical arguments, the Stapleton developers have been faithfully funding this subsidy for over a decade. This is just part of the deal. As a builder, we show up and say, ‘we would like to be part of the solution.’”

As a for-profit builder, Myers acknowl-edges that nonprofit builders have access to resources his firm doesn’t. Even so, he says, “Our objective is to complement their efforts, not to take buyers away. From an industry perspective, we want there to be a way for for-profit builders to work in this arena,” he says. He relates that Denver’s mayor has proposed a $15 million per year revenue stream to sup-port affordable housing, though it’s not yet clear if that revenue would support both for-profit and nonprofit builders.

Cris White is the executive director and CEO of the Colorado Housing and Finance Authority, (CHFA). The organization supports affordable home-ownership development and preservation across the state. They work to address the affordable housing issues by investing in fixed-rate loans to help homebuyers purchase a home; more than 80 per-cent of CHFA customers are first time homebuyers, and more than half of their homebuyers are millennials. They also offer down payment and closing cost assistance programs. A new down payment assistance (DPA) grant program gives buyers up to 3 percent of their first

mortgage loan. “The DPA grant program makes the difference for many to becom-ing a homeowner,” White says. CHFA also educates homebuyers, with free or nominal-fee classes that teach about the paperwork, jargon and financial respon-sibilities they will encounter. Finally, White says, “We work to ensure that home builders and the financial institu-tions that they partner with are aware of CHFA’s home mortgage offerings.”

CONSEQUENCESTheories and opinions abound on

where the market is headed, in terms of providing affordable housing for Colo-rado families. One thing that industry insiders seem to agree on is that the news may not be positive, for builders or homeowners alike, if market conditions remain as they are.

Myers sees comparisons between the Denver market and other large cities around the country. “Look at San Fran-cisco; their housing costs are way higher than ours, but people continue to go there if they can find good employment,” he says. He sees things a little differ-ently from the NAHB; “My hunch,” he continues, “is that as long as {the state} remains an attractive place to be, and the area generates jobs that people want, as a symptom of that, housing prices will continue to rise.” He finds it difficult to envision a time when housing prices shut down a local economy.

He refers to statements made by NAHB economist Elliot Eisenberg, who said that Denver should be worried about housing affordability; it has the highest housing cost of any city not on a coast. “Affordability is a factor in job formation,” says Myers. “We will have a harder time competing with cities like Dallas, Salt Lake City, Boston and San Antonio, in terms of employers,” he explains. Em-ployers may choose to locate to one city

“Housing in Colorado needs to be available at a variety of price points to ensure sufficient stock to house our workforce

and to attract new businesses.” — Cris White

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Builder Council Update

Spring HBA Events34

Remodeling Trends 28

Colorado Issues: Series Coverage Continues

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Winter 2016 | ICOLORADO BUILDER FORUM

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COLORADO ISSUES: ATTAINABLE HOUSING 14

WATER 20 THE LABOR MARKET 22

36Calendar of Events

28IBS Wrapup

Page 29: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

Summer 2016 | 27COLORADO BUILDER FORUM

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Woodford 22 seriesover another, he relates. Describing the potential employment landscape of the fu-ture, Myers says, “Where we are winning is with startups who want to stay here, not big companies who move here.”

“The two most expensive pieces of the home building industry are permit/fee cost, and land cost,” says Greg Miedema, executive officer of the Northern Colora-do HBA. Two things happen in this case, he says. “Development gets pushed out of the city: if one city or town has a total development fee package of $40,000, and a small unincorporated county has a $20,000 cost, where will you build?” He cites the “drive until you qualify” tagline that circulates around the industry. The unfortunate consequence of this migra-tion out of urban areas is that those peo-ple still transact commerce in the nearest city or town. “It’s shortsighted, because you get the demand, wear and tear of the infrastructure, but the communities don’t collect taxes for it,” Miedema says.

He sees a continued short supply of housing, if the market doesn’t change. “We’re already in a shortage, compound-ed by the fact that we have had a re-pressed building market for five to seven years,” Miedema says. “People will have nowhere to move. Prices have to stop go-ing up, at some point, or we are not going to be able to sell them.” He envisions a scenario where builders will have to make choices about what elements to cut from a product, in order to keep prices down. “They may cut cabinetry, or change ener-gy requirements,” he relates.

“Housing in Colorado needs to be available at a variety of price points to ensure sufficient stock to house our work-force and to attract new businesses,” says White. “If we fail to address this issue, Colorado will become a state in which homeownership is unattainable for the majority. This will have far-reaching im-pacts on the vibrancy and socio-economic diversity of our communities. Households that would have been able to prosper from the economic benefits of homeownership, such as building wealth and experiencing more stable educational opportunities for their families, will be left out of this aspect of the American Dream.”

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| Summer 2016 28 www.hbacolorado.com

A new program created in partnership with Western Pacific Insurance offers a one-stop insurance solution, with benefits for a variety of CAHB members

CAHB and Western Pacific’s Innovative Risk Management and Insurance Program

Page 31: 2016 Voter Information · 2017-04-07 · An appealing outside that hints at an amazing inside. So focus on what’s on the outside. What your home wears. ... By Mary Kay Hogan and

Summer 2016 | 29COLORADO BUILDER FORUM

A new program created in partnership with Western Pacific Insurance offers a one-stop insurance solution, with benefits for a variety of CAHB members

THE COLORADO ASSOCIATION OF HOMEBUILDERS and Western Pacific Insurance Network, Inc. have entered into an agreement to create a compre-hensive suite of insurance products, including risk management resources, available now to CAHB members. The program benefits can impact bottom line, reduce exposures, and help rein-force sound business and jobsite prac-tices for builders and associates alike. CAHB members ranging from home builders, developers, and trade contrac-tors, to associate members including architects, engineers, surveyors, material suppliers, real estate professionals, con-sultants and more, can all benefit from this innovative risk management and insurance program.

By Kelly Smith

CAHB and Western Pacific’s Innovative Risk Management and Insurance Program

IN-DEPTH

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| Summer 2016 30 www.hbacolorado.com

Western Pacific is a wholesale insur-ance broker, representing several insur-ance companies and more than 200 inde-pendent insurance agencies throughout the state. The insurance programs they offer as part of this package range from general liability, to worker’s compensa-tion coverage, property, pollution liability, wrap programs and more. The worker’s compensation coverage is an important offering for CAHB members, as it pro-vides all-important options in insurance coverage, which may have been lacking in Colorado’s market until this time.

Manage the RiskAnother important aspect of the pro-

gram is the risk management component; when companies incorporate these risk management resources into their day-to-day business and jobsite operations, they can reduce exposures in the event of a lawsuit, receive credits against premiums, enhance the safety and functionality on the jobsite and improve business strate-gies. “It’s a melded approach, providing risk management resources along with insurance coverage,” says company presi-dent Roger “Rick” Richter, Jr.

The risk management programs offer a smart, proactive method to address a variety of coverage issues. By accessing services such as quality assurance/qual-ity control practices, safety programs, subcontractor document review, certif-icate management, and gaining access to educational programs and materials, organizations can reduce their premium expenses and overall risk exposure. CAHB members who sign on to the risk man-agement components of the program can receive credits against premiums; at the same time, utilizing the program’s risk management resources can help save time and money, as well as easing the legal burden when a potential claim becomes real. Richter describes true-life scenarios where risk management could have made a big impact in the circumstances.

He describes a general contractor’s project that involved extensive remodel of a very large mansion that included

work in almost all rooms of the home. After initial demolition occurred, the vents were not sealed or closed in the house, which resulted in more than six figures worth of damage to interior of the home including high-end furnishings and artwork. “The owner filed a claim, however, the general contractor had no record of his written contract with the subcontractor,” Richter says. “So, the general contractor ended up paying the damages.” Western Pacific’s risk man-agement services include document review and record management, which would have ensured that the appropriate contracts were in place in this kind of sit-uation. Then there’s the story of another contractor whose subcontractor contracts were damaged at one point by water, thus had been lost. The contractor was able to successfully defend against a claim that was filed against him for his subcon-tractor’s work, though he spent $85,000 in loss adjustment expenses (LAE) to research and document his case. “If he had utilized an online certificate and contract management program, he would have had his documents saved and had access to them, potentially saving a lot of that LAE money,” says Richter.

In a final case, backups of subcon-tractor contracts and certificates, such as those offered by the CAHB/Western

Pacific certificate management pro-gram, would have proven valuable to a contractor whose subs used improperly sized soffits, leading to water penetra-tion issues. Without those documents, the contractor had difficulty proving agreements were in place with the sub-contractors, and ended up being assessed the damages for the claim.

Good risk management procedures do more than protect against claims; they also provide an infrastructure of docu-mentation, quality review and provide a template for sound jobsite practices.

Premium SavingsBy placing new policies or renew-

ing existing policies with the preferred carriers through the Program, members will be able to realize a minimum of five percent, and depending on the selection of products, even more savings in their insurance premium and risk management costs. Many CAHB members won’t have to change their agents or carriers in order to participate. In addition, many of the primary agents assisting in the marketing of this Program are already members of their local HBA’s.

For more information on this original, highly

valuable benefit from Western Pacific, contact

your insurance agent or local executive officer.

“The worker’s compensation coverage is an important offering for CAHB members, as it provides all-important options in insurance coverage, which may have been lacking in Colorado’s market until this time.”

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Summer 2016 | 31COLORADO BUILDER FORUM

For additional information, please contact or have your agent contact:

Western Pacific Insurance Network, Inc.

866-904-3777 www.westpacins.com/home-builders

• Insurance coverages include General Liability, Workers’ Compensation, Builders Risk, Commercial Auto, Contractor’s Equipment, Property, Pollution Liability, and WRAP Insurance Programs. Additional premium credits available to CAHB Members.

• Program integrates multiple third party risk management firms to benefit the Member, including document review, QA/QC, certificate management and tracking services, safety management programs, warranty programs, and more. Additional premium credits available when Member utilizes various 3rd party vendor programs.

• Multiple insurance carrier options available

• Western Pacific Insurance Network, Inc. is the Program Manager as an insurance wholesale broker. The Program is marketed and sold exclusively through approved Independent Insurance Agents in YOUR community and in partnership with Western Pacific.

• Insurance policies are issued through Members’ existing Independent Insurance Agents, in partnership with Western Pacific Insurance Network, Inc.

AS A CAHB MEMBER, YOU QUALIFY!Introducing the CAHB/Western Pacific Risk Management and Insurance Program that provides special credits to all CAHB members.

Western Pacific_FP.indd 1 8/18/16 10:55 AM

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| Summer 2016 32 www.hbacolorado.com

Trends

PARADE PREPARATIONS have been completed. Final touches have been added to the homes. Tickets have been sold, and the Parade of Homes Tour is kicking off around the state. Local HBAs have worked diligently to perfect their individual parades, and there is a high demand to meet everyone’s expectations, from builder to tradesmen to parade attendee. These tours are massive endeavors for everyone involved, and each parade strives to showcase the best in local architecture and design for the locale. Every builder, contractor and tradesperson participating recognizes current home design trends, and they appreciate the impact that their construction could have on the thousands of parade attendees. What is interesting and appealing to home-buyers can be beautifully varied from Colorado Springs to Steamboat to Denver.

Housing Market Drives Parades Colorado’s hot housing market is reaching the far corners of

our state. Talking to prospective homebuyers about their dream homes, homebuilders are seeing a few design trends. The market varies across the state, as people walking the parade in Summit County have different desires than those in Colorado Springs. “The majority of people at our parade are from Colorado but we do get a lot from out of state,” explains Marilyn Hogan, Summit County Builders Association executive officer, “Our homes are in Keystone, Silverthorne, Copper Mountain, Frisco and Breckenridge so we have many large, beautifully designed homes.” Denverites checking out the Summit County Parade of Homes are possibly looking for a retirement, vacation or luxury

The annual Parade of Homes offers inspiration and a chance to showcase construction trends

By Jamie McAfee

home. On the other hand, Colorado Springs has experienced a big increase in multi-level starter homes in the $350,000 range. Driving this growth is an increase in tech companies, which has attracted and retained millennials who are purchasing their first home. The Colorado Springs parade will highlight model homes that fit this particular niche growth in their area.

Design TrendsRecurring design trends prominent in parades this year are

smart technology, energy efficiency, outdoor living spaces and modern architectural features. Market research has shown that home technology is becoming an industry standard; no mat-ter the location, tech is in high demand. “Smart Home” is a buzzword to homebuyers and in the construction world, and embracing new technology is playing an increasingly larger role in home construction. Parade-goers are looking for a home that is equipped with network-connected products with controlling, automating and optimizing functions for everything from temperature and lighting to security, safety and entertainment. This year, Northern Colorado’s Parade of Homes added a ‘Smart Home’ category to their judging criteria, and Parades around the state will showcase a variety of technological improvements. Advancements in home security have revolutionized the way we interact with our living spaces. Making things easier and smarter, these tech gadgets will be on display in many of these Parade homes. From setting the temperature on your thermostat remotely to lowering your blinds or turning your lamps on and off, an automated home is not just a thing of the future anymore.

Bridgewater Homes presents this model for the 2016 Northern Colorado Parade

Let the Parade Begin

we serve you, and we understand the value of Exceptional customer service. We have earned our reputation for honesty and integrity by treating our customers as we want to be treated. Our growing number of repeat customers is the best testament to the success of our philosophy. Whether you’re a developer, architect, landscape contractor or homeowner, we invite you to experience the level of commitment we have to our customers and the services we provide.

We think you’ll see why Colorado Materials is your best value.

For more information please call

303.682.2314www.coloradomaterialsinc.com

AS A FAMILY OWNED BUSINESS,

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we serve you, and we understand the value of Exceptional customer service. We have earned our reputation for honesty and integrity by treating our customers as we want to be treated. Our growing number of repeat customers is the best testament to the success of our philosophy. Whether you’re a developer, architect, landscape contractor or homeowner, we invite you to experience the level of commitment we have to our customers and the services we provide.

We think you’ll see why Colorado Materials is your best value.

For more information please call

303.682.2314www.coloradomaterialsinc.com

AS A FAMILY OWNED BUSINESS,

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| Summer 2016 34 www.hbacolorado.com

Trends

When fridges can tell you you’re out of milk, the future is now. “There are a pretty wide variety of technical capabilities that we work with. Everything is going to be wireless and hooked up to a satellite. We don’t even put landlines in anymore,” Marc Hogan of Summit County’s BHH Partners, Planners & Architects explains.

Buyers don’t just want a smart home; they want it to be green as well. Homebuyers are looking for more environ-mentally friendly features. Green building will emphasize tight construction for a better energy efficiency rating. The biggest trends are in lighting, appliances, windows, doors and geo-thermal heating and cooling. Saving homeowners money on their electric bills is becoming an industry standard. Parades will include homes that are built above and beyond energy code minimums. “Green and Smart features are most definitely hot and popular aspects in the newer homes that are being entered,” explains Janet Hatfield of the Northern Colorado HBA.

Outdoor design in Colorado has always been prevalent but builders are, even more, highlighting the many uses of outdoor spaces. Blurring the edge between interior spaces and outdoors rooms has dominated design. “There’s a focus on decks, patios and outdoor living that is indicative of its increasing populari-ty,” says Hatfield. An indoor-outdoor flow between house and nature is trending in Colorado—walls shouldn’t close off the beauty of our state. Instead, builders are incorporating nature into architectural design. With our climate, Colorado’s out-door design is as important as the interior. An outdoor oasis that mimics the comfort of a man cave is more than a patio set and BBQ grill. Model homes will feature outdoor living spac-es with upscale appliances, wet bars, high-tech sound systems, fireplaces, fire pits and weather resistant flat screen TVs.

In addition to blurring the line between exterior and interior, a more modern design is abundant in new home construction

Top, left: 2015 Summit County POH, by Trilogy Partners (Photo courtesy Trilogy Partners) Above: 2016 Northern Colorado POH, by Loveland’s LC Homes (Photo courtsey LC Homes) Below: 2016 Northern Colorado POH, by Tri Pointe Homes (Photo coursey Tri Pointe Homes)

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Summer 2016 | 35COLORADO BUILDER FORUM

Environmental Services:

• Soil and Groundwater Sampling

• Radon Sampling and Design

• No Burn Fireproofing Evaluations

• Environmental Assessments and Cleanup

• Asbestos Inspections and Debris Evaluations

Geotechnical Services:

• Geotechnical Studies

• Construction Observation and Testing

• Asphalt and Concrete Testing

• Pavement Deflection Testing

• Concrete Moisture Vapor Testing

Providing geotechnical and environmental engineering services to the Rocky Mountain region since 1972

www.agwco.com(303) 759-8100

Top, left: 2015 Summit County POH, by Trilogy Partners (Photo courtesy Trilogy Partners) Above: 2016 Northern Colorado POH, by Loveland’s LC Homes (Photo courtsey LC Homes) Below: 2016 Northern Colorado POH, by Tri Pointe Homes (Photo coursey Tri Pointe Homes)

DUFFORDBROWN.COM

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| Summer 2016 36 www.hbacolorado.com

Trends

and remodels. In Denver, residents are seeing triplexes with clean, simple lines, lots of glass and little ornamentation. Innovative and for-ward-thinking architectural design isn’t just for urban dwellers. Summit County is experiencing a new “mountain modern” as well. As Hogan explains, “In the last three to four years we have seen a more mountain modern design, but it’s not so modern looking that it doesn’t fit in. It still has elements of traditional mountain home design including timber beams and log features but with straighter, cleaner lines.” Curved roofs and sleek, steel detailing appeal not only to millennials but also to people who appreciate symmetry in design. Modern home interiors will feature basic shapes, functional lines and curves, along with materials such as metal, chrome and glass with minimal décor.

Parade OfferingsThe Parade setup has evolved over the years

for many reasons. Nearly all Parades have mod-ernized from start to finish. Parade goers can purchase tickets online, vote for homes online, save the Parade magazine on their tablets or virtually tour each home through QR codes. In Colorado Springs, beacons placed around the home will push information to your smart phone. “We’ve tried to make it more up to date

with modern forms of advertising and infor-mation. This year we will have beacons in the homes so when Parade goers are walking around the house, the beacons will identify information about the house from a sub-contractor or trades-person. Once people are in range of the beacons, it will push information to their smart phones to tell them about the builder, energy efficiency or some other aspect or feature,” explains Ryan Klein, Colorado Springs Parade chair. It’s a way for people to see a house remotely without a tour guide and a great way for builders custom-ize information easily sent out to a multitude of people. More traditional events like raffles, auc-tions, kickoff celebrations and VIP nights will accompany the Parades as the public is treated to a gorgeous home tour as well as some fun chances to win prizes. “We evaluate every event after completion and look for what worked, and retool what didn’t to make sure that our sponsors, builders, advertisers and the commu-nity all have a unique and successful experience,” Hatfield explains. Every HBA is sure to put on the best of the best for attendees and it’s a great opportunity for builders to showcase their work, win some awards and draw inspiration for the following year.

Jamie McAfee is a Denver-based freelance writer.

UPCOMING PARADE OF HOMES

Aug. 3-21 Colorado Springs cshba.com

Aug 5-7, 12-14 Pueblo pueblohba.org

Aug. 13-Sept. 7 Metro Denver hbadenver.com

Sept. 9-11, 16-18 Loveland nocohba.com

Sept. 17-18, 24-25 Summit County summitcountybuilders.org

Sept. 23-25 Durango hbasc.com

Sept. 30-Oct. 2, Oct. 7-9 Grand Junction hbanwco.com

Toll Brothers created this entry for the 2016 Northern Colorado Parade of Homes

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Summer 2016 | 37COLORADO BUILDER FORUM

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ellisonbrimagewhychoosead.pdf 1 2/9/16 11:44 AM

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| Summer 2016 38 www.hbacolorado.com

THE 2,000 MEMBER-STRONG NAHB board recently gath-ered in Miami for its mid-year sessions. Republican presidential candidate Donald Trump, Democratic presidential candidate Hillary Clinton’s economic advisor Gene Sperling and noted political analyst Charlie Cook provided a variety of political information aimed at home builders. Trump spoke about his father, a New York homebuilder and the lessons he learned from him. He went on to note the importance of the housing industry and the extent and impact of burdensome regulations that cost over $2 trillion per year, and his vow to reduce them if elected. Sperling also discussed the importance of the housing industry to the economy and the jobs that it creates. He also discussed relaxing some of the current tight lending standards and the im-portance of the government backstop to the 30-year fixed loan. Cook predicts a tight presidential race, Republicans keeping control of the House and a toss-up in the Senate.

NAHB CommitteesNAHB has several active committees that examine and review

issues, ranging from construction codes and land development to business management and environmental issues. Over the past four years, CAHB has been a funding recipient from the State and Local Affairs Committee for efforts on changing the litigious construction defect litigation environment in Colorado. The issue is still on the NAHB radar and we are working with NAHB on additional assistance as the issue moves ahead.

The message from the Construction Codes Committee is re-garding the upcoming deadline of September 19; its the last day for cities, towns and counties to decide who will vote when the ICC holds public comment hearings in Kansas City in October. Visit nahb.org/codedevelopment for the list of code changes and nahb.org/codestaff to get a list of eligible voters in your state.

The new overtime rule promulgated by the US Department of Labor will go into effect December 1, 2016, and employers must be in compliance at that time. NAHB estimates over 100,000 construction supervisors will now be eligible for overtime. The administration doubled the salary level for the overtime exemp-tion from $23,660 to $47,476.

NAHB Mid-Year Board of Directors Meeting in Miami

The BuildPAC Trustee meeting reviewed the candidates for endorsement and support. It’s important to note that BuildPAC contributes significantly more money to Colorado candidates than the collective Colorado member BuildPAC contributions. There are many ways to get involved in BuildPAC, through the Gold Key and Platinum Clubs as well as with smaller contri-butions. BuildPac needs your support. BuildPAC determined support for the re-election efforts of Representatives Mike Coff-man, Scott Tipton, Ken Buck and Doug Lamborn and Senator Michael Bennet.

The Federal Governmental Affairs committee reported on continuing work on the Waters of the United States; federal immigration policy; retaining and restructuring the important government mortgage associations of Freddie Mac and Fannie Mae and the Low Income Housing Tax Credit, among others.

Several local and state associations (including Colorado) ex-pressed concern with the impending NAHB dues increase. The result of the recommendation was to have a proposal to post-pone the last scheduled dues increase for a year. This proposal will be voted on at IBS in Orlando in January.

Sign up now for the International Builders Show January 7-12 in Orlando. Go to buildersshow.com to take advantage of early registration rates and to book lodging.

NAHB Mid-Year Meeting

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Summer 2016 | 39COLORADO BUILDER FORUM

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| Summer 2016 40 www.hbacolorado.com

The official journal of the Colorado

Association of Home Builders, and the ONLY publication

that targets the bulk of purchasing power within the Colorado

homebuilding community!

Reaching more than 2,000 homebuilder

member companies, comprising builder members in all 11

chapters statewide!

CONTACT:Martha Dickenson, Director of Sales

303-502-2518mdickenson@

associationmediapartners.com

Spring 2016 | ICOLORADO BUILDER FORUM

Spring 2016

Builder Council Update

Spring HBA Events34

Remodeling Trends 28

Colorado Issues: Series Coverage Continues

14

32

Winter 2016 | ICOLORADO BUILDER FORUM

Winter 2016

COLORADO ISSUES: ATTAINABLE HOUSING 14

WATER 20 THE LABOR MARKET 22

36Calendar of Events

28IBS Wrapup

THE NAHB INTERNATIONAL BUILDERS’ SHOW® (IBS) is an industry powerhouse; it’s the largest light construction show in the world, drawing more than 60,000 visitors from 100 countries around the world to network, learn, and gear up for the coming year.

While it’s a highlight of the year for many attendees, IBS can be a daunting experience. There is a seemingly endless variety of things to see and do, with more than 1,400 manufacturers and suppliers, 500,000 square feet of exhibits, 120-plus education sessions, a showcase home, Centrals, which are hubs for niche-centered programs, demonstrations and hands-on workshops, and a variety of after-hours events and gatherings. The trick can be how to get the most out of your visit to IBS, to take advantage of all that the event has to offer. Be sure to look on the pages of the fall 2016 issue of Colorado Builder Forum, which will feature tips and resources for your visit to IBS.

IBS 2017Find out how to get the most out of this annual industry event

Registration for the 2017 show in Orlando, Florida, opens August 1; visit HOTLINK: http://www.buildersshow.com/Home/ to sign up for email updates, get lodging and travel information, and to complete early registration.

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1114 West 7th Avenue, Suite #205 Denver, CO 80204

hbacolorado.com

2016 Membership Directory

& Resource Guide

For more information,contact: Martha Dickenson, Director of Sales 303-502-2518, [email protected].

The Colorado Association of Home

Builders (CAHB) is the unified voice of

the homebuilding industry in Colorado.

CAHB represents builder members in all

11 chapters of Home Builder’s Associa-

tions (HBA), statewide. The annual Mem-

bership Directory is the ONLY directory

reaching decision makers who represent

the bulk of purchasing power in the build-

er community. Audience includes: produc-

tion builders, custom builders, commercial

builders, remodelers, developers, design-

ers and building suppliers, as well as all

industry support members.

Distributed in both print and digital ver-

sions, the annual Membership Directory

is your best investment for reaching this

targeted group of building profession-

als and key influencers in the Colorado

building industry.

ADVERTISE TODAY!Ad Close: October 14, 2016

Ad Materials Due: October 30, 2016

IN THE 2017 CAHB MEMBERSHIP DIRECTORY & RESOURCE GUIDE

ADVERTISE

CAHB House Ad_Directory.indd 1 8/16/16 10:40 AM

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Summer 2016 | 43COLORADO BUILDER FORUM

Bloedorn LumberFort Morgan970-867-5646

Cedar SupplyFort Collins970-663-2828

Hylton LumberSalida719-539-4895

La Jara TradingLa Jara719-274-585

Mawson LumberFort Collins970-482-8082

GreenHorn Valley True ValueColorado City719-676-3076

Timberline Building SupplyWalden970-723-4422

Blue Spruce LumberLake City970-944-2581

Samuelson’s True ValueMeeker970-878-3528

Samuelson’s True ValueCraig970-824-6683

Pro BuildDurango970-259-0340

Pro BuildCortez970-565-9449

Lewis True ValueBayfield970-884-9502

Lewis MercantileDurango970-247-8487

Day LumberPagosa Springs970-264-5515

Pro BuildSteamboat Springs970-879-0023

The Deck SuperstoreCommerce City303-287-0233

Sutherland’s LumberGrand Junction970-243-8000

Moore LumberCastle Rock303-688-5121

Budget Home CenterLongmont303-678-8800

Alamosa Building SupplyAlamosa719-587-0338

Poncha LumberPoncha Springs719-539-4754

Dependable LumberPaonia970-879-0023

Deckorators.comFULL SERVICE STRUCTURAL DESIGN AND

CONSTRUCTION PHASE CONSULTING SERVICES

Single Family Production | Custom Residential | AdditionsMultifamily & Commercial

A.G. Wassanaar Inc. www.agwco.com ................................... 35

Acme Brick www.brick.com ............................................9

Alpine Lumber www.alpinelumber.com.................................. BC

Anchor Engineering, Inc. www.anchoreng.com ........................... 43

Boise Cascade www.bc.com .......................................... 19

Building Materials and Construction Services (BMC) www.BuildWithBMC.com... 23

Capco Tile & Stone www.capcotile.com ..................................3

Cedar Creek www.cedarcreek.com .......................................2

Colorado Materials www.coloradomaterialsinc.com ........................ 33

CTL Thompson www.ctlthompson.com .................................. 37

Denver Hardware www.denhw.com ..................................... 15

Dufford Brown duffordbrown.com ...................................... 35

FBC Mortgage, LLC www.FBCHomeLoans.com/ebrimage ................... 37

Galleria Lighting & Design www.gallerialighting.net .........................1

Haddonstone haddonstone.com ....................................... 39

Rio Grande Co. www.riograndeco.com................................... 13

RW Specialties, Inc. www.FortressRailing.com ...........................4, 5

Saddleback Design gosaddleback.com..........................Bellyband, 7

Solutions Before Solutions After (SBSA) www.callSBSA.com................ 44

StrucSure Home Warranty www.strucsure.com ........................... 12

The Ranch treventscomplex.com ...................................... 39

TruWood truwoodsiding.com .......................................... IFC

Universal Consumer Products, Inc. Deckorators.com.................... 11, 43

Urban Lights UrbanLightsDenver.com ................................... 41

Wells Fargo Home Mortgage 303-471-7114 ............................. 14

Western Pacific Insurance www.westpacins.com .......................... 31

Weyerhaeuser 800-332-8291 ......................................... IBC

WMC Industries ..................................................... 27

advertiser indexAdvertiser Page

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Let us help you with your property

SOLUTIONS BEFORE: • Architectural Design

• Repair and Rehabilitation Design

• Structural/Civil Engineering

specializes in providing complete property services for your total home.

www.callSBSA.com303-425-7272

SOLUTIONS AFTER: • Property Loss/Damage Claims

• Energy Audits and Assessments

• Infrared Thermography

Code and ADA Compliance

BEFORE and AFTER

SBSA_P Ad _Fall2015_CBF.indd 1 11/4/15 10:31 AM

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