IBA Executive Committee Meeting · Thurston - HPF Liquid Account 0484 1,454.47 Thurston - IBA...

__________________________________________________________________________________ INDIANA BUILDERS ASSOCIATION

101 W. OHIO ST., STE. 710 INDIANAPOLIS, INDIANA 46204

800-377-6334 WWW.BUILDINDIANA.ORG [email protected]

IBA Executive Committee Meeting Monday, February 27, 2017

8:30 a.m. – 10:30 a.m.

Hyatt Regency, Indianapolis

Lance Swank, Chairman

Welcome and Introductions

Approval of Minutes…………………………………………………..Brett Harter, Secretary

Treasurer’s Report (Financial Management Report)………..Don Thieneman, Treasurer

Area Vice Presidents Reports

Old Business o Strategic Planning Update……………………….…………………….…Pat Richard o IBA Governance Task Force Report…...…………………………..Don Thieneman o From the Ground Up Program Update…………………………………..Rick Wajda

New Business o 2017 Legislative/Regulatory Issues…………………………………..Carlie Hopper

New Code; HB 1002 – Infrastructure Funding Economic Impact of Housing

o Sustaining Dues Program……..……………………………………….…Jim Pressel o Balancing the Budget/Deficit Reduction….…………Don Thieneman/Pat Richard o Statewide Licensing Issue………………………………………………..Rick Wajda

CEO Report………………………………………………………..………….……Rick Wajda o Association Issues

Endorsing Statewide Candidates Non-Dues Revenue Products/Programs Association Rebate Program At-large membership dues

NAHB Report…………………………..………….…………....Andy Place, Sr., CGB, CGP

Other Business

http://www.buildindiana.org/

__________________________________________________________________________________ INDIANA BUILDERS ASSOCIATION

101 W. OHIO ST., STE. 710 INDIANAPOLIS, INDIANA 46204

800-377-6334 WWW.BUILDINDIANA.ORG [email protected]

Tuesday, February 28 - Agenda 11:45 am - 12:00 pm Meeting

Committee Proposals Needing Action

Adjournment

http://www.buildindiana.org/

As of January 31, 2017

Indiana Builders Association, Inc.

2017 Executive Committee

Lance Swank, Mishawaka (President)

Pat Richard, CGP, Lafayette (Vice President)

Don Thieneman, Floyds Knobs (Treasurer)

Brett Harter, CAPS, Leesburg (Secretary)

Andy Place, Sr., CGB, CGP, South Bend (State Representative for NAHB)

Jim Pressel, CGB, LaPorte (Immediate Past President)

Frank Rhoades, Pierceton (Parliamentarian)

Ed Kelly, Crown Point (Builder Area Vice President)

Jeff Loucks, CGB, CAPS, CGP, Goshen (Builder Area Vice President)

Jeff Thomas, Ft. Wayne (Builder Area Vice President)

State Rep. Heath VanNatter, Kokomo (Builder Area Vice President)

Ryan Baker, Terre Haute (Builder Area Vice President)

Dan Losekamp, Harrison, OH (Builder Area Vice President)

Steve Smith, Floyds Knobs (Builder Area Vice President)

Brian Murphy, Evansville (Builder Area Vice President)

Hal Kemmerer, Chesterton (Associate Area Vice President)

Greg Gerbers, Fort Wayne (Associate Area Vice President)

Mary Ellis, Lafayette (Associate Area Vice President)

Tom Slater, Brazil (Associate Area Vice President)

Trent Hunt, New Albany (Associate Area Vice President)

Linda Rogers, Granger (Past Presidents’ Council Appointment)

State Rep. Doug Miller, Elkhart (Past Presidents’ Council Appointment)

Brian Adams, Indianapolis (Voting/President’s Appointment)

Grant Giese, Lafayette (Voting/President’s Appointment)

Mike Hannigan, Carmel (Voting/President’s Appointment)

Steve Heidorn, CGB, CGR, CAPS, CGP, Chandler (Voting/President’s Appointment)

Ric Zehr, Ft. Wayne (Voting/President’s Appointment)

Jeff Wilson, Ft. Wayne (Voting/Local Presidents’ Council Chairman)

David Compton, Fishers (Voting/Housing Protection Fund Chairman)

Jason Bell, Bloomington (Associate Committee Chairman)

Mike Bell, Westville (Remodeler Appointment)

Kim McKibbin, Elkhart (Non-voting/Local Executive Officers’ Council Chairwoman)

Greg Furnish (Non-voting/ IBA’s National Director)

Minutes Indiana Builders Association, Inc.

Executive Committee Meeting December 4, 2016

4:00 p.m. 502 East Event Centre, Carmel

Present: B. Adams; R. Baker; M. Bell; D. Compton; M. Ellis; B. Harter; E. Kelly; H. Kemmerer; J. Loucks; B. Murphy; J. Pressel; F. Rhoades; P. Richard; L. Rogers; T. Slater; L. Swank; D. Thieneman; J. Thomas; R. Zehr

Guests/Non-Voting Committee Members in Attendance (including staff): K. Heffner; C. Hopper; R. Jenkins; S. Lains; K. McKibbin; T. Meyer; R. Wajda IBA President J. Pressel welcomed everyone to the meeting and asked for introductions. IBA Secretary D. Thieneman presented the Minutes from the meeting on September 11-12, 2016. Upon a motion and a second, the minutes were approved. IBA Treasurer P. Richard presented Financial Management Report for the period ended October 31, 2016 which reflects total revenue of $498,160.47, total expenditures of $568,961.76, net operating revenue of ($70,801.29), and other revenue/expenditures added in of $99,273.66. Upon a motion and a second, the financials were approved as presented. S. Lains, Executive Officers of the BA of Greater Indianapolis, presented From the Ground Up – a program to educate high school students on the variety of career paths and opportunities available in the homebuilding industry. Upon a motion and a second, the Committee supports partnering with the BA of Greater Indianapolis to offer From the Ground Up to local associations and other HBAs and reimbursing (BAGI) $15,000 for expenses incurred to date once IBA has commitments from 10 local associations to order the kits. Area Vice Presidents reported on events, activities, and challenges for the local HBAs in their jurisdictions. E. Kelly reported that Jasper County HBA notified NAHB of its intent to relinquish its charter. M. Ellis reported that the BA of Greater Lafayette petitioned NAHB for an increase in jurisdiction to included four (4) counties. D. Thieneman, Governance Task Force Chairman, presented the recommendations of the Task Force. Upon a motion and a second, the recommendations were approved with the following modifications: the National State Rep. should remain a non-voting member of the Executive Committee and the IBA Treasurer should remain part of the Leadership ladder vs. the State Secretary. J. Pressel thanked the Committee for participating in the new member challenge to recruit one (1) new member and said the challenge would run through the end of the month giving Committee members a few more weeks to recruit or pay up. P. Richard presented the 2017 Budget. Upon a motion and a second, the budget was approved as presented. IBA Governmental Affairs Director C. Hopper reported that the Indiana General Assembly would convene in four (4) weeks and that IBA anticipates legislation to be filed on engineered lumber, inclusionary zoning, private property rights, piping materials in public works projects, immigration, real property improvement contracts, and appraiser certification board appointees.

C. Hopper presented the 2017 Legislative & Regulatory Policy additions on architectural design standards, inclusionary zoning and boards and commissions, which would be discussed at numerous committees the following day. C. Hopper reported that the Professional Licensing Agency is nearing completion of the online application for the Voluntary Contractor Registry (VCR) and once the licensing agreement with NAHB Education is in place, the registry will launch. Hopper encouraged the builders and remodelers on the Committee to participate in the VCR. C. Hopper reported the following 2016 Pride of Leadership program winners had reached their goals in membership growth, meeting attendance and PAC fundraising: 1st Place Winners

TJ Jacobs, Dearborn County President

Jeff Thomas, HBA of Ft. Wayne President

Corey Hughes, BDA of Southern Indiana President and Charlie Smith, BDA of Southern Indiana EO

Eric Early, Marshall County HBA President and Kay Miller, Marshall County HBA EO

Jeff Wilson, BA of Northeast Indiana President 2nd Place Winner

Jamie Mather, Dearborn County EO Upon a motion and a second, the Committee approved continuing the Pride of Leadership Program for 2017. C. Hopper provided an update on IBA’s Local Association Member Rebate program, which provides a rebate of 60% rebate of state dues to locals for any net increase in members at year-end. As of 10/31/16, 9 local HBAs have a net increase in membership resulting in potential exposure to IBA of $11,904, while IBA is up 12 members for a total of $1920. Upon a motion and a second, the Committee approved continuing the Local Association Member Rebate Program for 2017 with the following modifications: local associations will receive a 50% rebate on state dues for any net increase in membership and a 20% rebate on state dues for the retention of any new member recruited in 2016; assuming the local HBA has a net increase in membership for 2017, according to NAHB membership report as of 12/31/17. J. Pressel announced the meeting was in recess until 11:45 a.m. on December 5, 2016. Present: B. Adams; R. Baker; M. Bell; T. Eckert; M. Ellis; G. Furnish; B. Harter; E. Kelly; H. Kemmerer; D. Losekamp; A. Place; J. Pressel; F. Rhoades; P. Richard; L. Rogers; T. Slater; S. Smith; L. Swank; D. Thieneman; J. Thomas; H. VanNatter; R. Zehr

Guests/Non-Voting Committee Members in Attendance (including staff): M. Hannigan; C. Hopper; R. Jenkins; K. McKibbin; R. Wajda J. Pressel reconvened the meeting at 11:45 a.m. on December 5, 2016. J. Pressel reported the Nominating Committee slated Frank Rhoades, Cottage Watchman, Warsaw, for Parliamentarian. Upon a motion and a second, the Executive Committee ratified the nomination. H. Kemmerer reported the Education Committee recommends changing its name to the Educational Services and Training Committee. The Executive Committee affirmed the recommendation. C. Hopper presented the 2017 Legislative & Regulatory Policy additions on inclusionary zoning and board and commission. Upon a motion and a second, the additions were approved.

C. Hopper reported that the Codes & Safety Committee recommends the review and adoption of a new residential code. The Executive Committee affirmed the recommendation. There being no further business to come before the Board, the meeting was adjourned. Respectfully submitted, Don Thieneman IBA Secretary

For management use only

Management Report

Indiana Builders Association, Inc.For the period ended December 31,2016

Prepared by

Nanette L. Johnson

Prepared on

January 31, 2017

2/12

Table of Contents

Statement of Financial Position .............................................................................................................................3

Statement of Cash Flows.......................................................................................................................................5

A/R Aging Detail.....................................................................................................................................................6

A/P Aging Detail.....................................................................................................................................................8

Budget vs Actuals Year to Date.............................................................................................................................9

Notes to Management Reports............................................................................................................................12

Indiana Builders Association, Inc. 3/12

Statement of Financial PositionAs of December 31, 2016

Total

ASSETS

Current Assets

Bank Accounts

Checking - Huntington Bank 35,232.62

Checking - IMCU 0.12

Petty Cash 99.00

Savings - IMCU 523.71

Security Deposit 3,917.00

Total Bank Accounts 39,772.45

Accounts Receivable

Accounts Receivable 12,271.04

Total Accounts Receivable 12,271.04

Other Current Assets

Builder Standards Inventory 936.02

Merchandise Inventory 3,463.25

Prepaid General Insurance 3,156.00

Thurston - HPF Liquid Account 0484 1,454.47

Thurston - IBA Liquid Account 0955 472.90

Thurston Funds Mutual Fund - HPF 1826 835,277.97

Thurston Funds Mutual Fund - IBA 1827 312,370.23

Thurston Mutual Fund - BLDG 0760 642,600.14

Thurston Securities - IBA 1828 167,756.48

Undeposited Funds 2,447.00

Total Other Current Assets 1,969,934.46

Total Current Assets 2,021,977.95

Fixed Assets

Furniture & Equipment 77,115.33

Accumulated Depreciation -63,668.20

Total Furniture & Equipment 13,447.13

Total Fixed Assets 13,447.13

TOTAL ASSETS $2,035,425.08

LIABILITIES AND EQUITY

Liabilities

Current Liabilities

Accounts Payable

Accounts Payable 7,894.83

Total Accounts Payable 7,894.83

Other Current Liabilities

Deferred Revenue - Dues 200,319.40

E.O. Council Funds Due 2,923.16

Remodeler Dues held for NAHB 40.00


Total

Total Other Current Liabilities 203,282.56

Total Current Liabilities 211,177.39

Total Liabilities 211,177.39

Equity

Retained Earnings 1,797,807.20

Net Revenue 26,440.49

Total Equity 1,824,247.69

TOTAL LIABILITIES AND EQUITY $2,035,425.08


Statement of Cash FlowsJanuary - December 2016

Total

OPERATING ACTIVITIES

Net Revenue 26,440.49

Adjustments to reconcile Net Revenue to Net Cash provided by operations:

Accounts Receivable -9,345.65

Builder Standards Inventory 6,212.74

Prepaid General Insurance -150.00

Accounts Payable -5,517.37

Deferred Revenue - Dues 13,234.73

E.O. Council Funds Due -240.00

License Fee for Builder's Standard 1,164.00

Remodeler Dues held for NAHB 40.00

Total Adjustments to reconcile Net Revenue to Net Cash provided by operations: 5,398.45

Net cash provided by operating activities 31,838.94

INVESTING ACTIVITIES

Thurston - HPF Liquid Account 0484 -0.42

Thurston - IBA Liquid Account 0955 -0.60

Thurston Funds Mutual Fund - HPF 1826 -1,095.83

Thurston Funds Mutual Fund - IBA 1827 41,199.70

Thurston Mutual Fund - BLDG 0760 -10,552.23

Thurston Securities - IBA 1828 -29,260.34

Net cash provided by investing activities 290.28

FINANCING ACTIVITIES

Fund Balance - Prior Years 63.00

Retained Earnings -63.00

Net cash provided by financing activities 0.00

NET CASH INCREASE FOR PERIOD 32,129.22

Cash at beginning of period 10,090.23

CASH AT END OF PERIOD $42,219.45


A/R Aging DetailAs of December 31, 2016

Date Transaction Type Num Customer Due Date Amount Open Balance

91 or more days past due

08/10/2016 Pledge 1795 HBA of St. Joseph Valley 09/09/2016 1,013.00 1,013.00

08/17/2016 Pledge 18012-10 Home Buyers Warranty 09/16/2016 149.00 149.00

08/17/2016 Pledge 1799 Fluid & Thermal Systems 09/16/2016 490.00 490.00

08/17/2016 Pledge 1800 WaterFurnace 09/16/2016 490.00 490.00

Total for 91 or more days past due $2,142.00 $2,142.00

31 - 60 days past due

10/11/2016 Pledge 1926

Building and Development Assoc. of Southern Indiana 11/10/2016 25.00 25.00

10/11/2016 Pledge 1925Lavelle, Logan Hunt Insurance LLC 11/10/2016 149.00 149.00


10/11/2016 Pledge 1927 Fort Group 11/10/2016 731.00 731.00

Total for 31 - 60 days past due $1,395.00 $1,395.00

1 - 30 days past due

11/01/2016 Pledge 1943Indiana Business Research Ctr 12/01/2016 1,000.00 1,000.00

Total for 1 - 30 days past due $1,000.00 $1,000.00

Current

12/16/2016 Pledge 1972BA of Kosciusko Fulton County 01/15/2017 125.00 125.00

12/16/2016 Pledge 1973Building Association of South-Central Indiana 01/15/2017 508.50 508.50

12/16/2016 Pledge 1971Southwestern IN Builders Assoc 01/15/2017 1,013.00 1,013.00

12/16/2016 Pledge 1974 BA of Northeast Indiana 01/15/2017 1,013.00 1,013.00

12/16/2016 Pledge 1975 BA of Elkhart County 01/15/2017 2,030.00 2,030.00

12/22/2016 Pledge 1977Eisenhour Home Improvements 01/21/2017 40.00 40.00

11/18/2016 Pledge 2014 Mass Mutual - Refund 01/25/2017 2,514.54 2,514.54


Date Transaction Type Num Customer Due Date Amount Open Balance


Total for Current $7,734.04 $7,734.04

TOTAL $12,271.04 $12,271.04


A/P Aging DetailAs of December 31, 2016

Date Transaction Type Num Vendor Due Date Past Due Amount Open Balance

91 or more days past due

09/30/2007 Bill Auditor of the State of IN 09/30/2007 3421 900.00 900.00

Total for 91 or more days past due $900.00 $900.00

Current

12/31/2016 Bill Visa - KH 12/31/2016 41 2,192.21 2,192.21

12/31/2016 Bill M. Nelson & Assoc., Inc. 12/31/2016 41 1,620.84 1,620.84

12/31/2016 Bill BA of Greater Indianapolis 12/31/2016 41 940.00 940.00

12/31/2016 Bill Visa Gold HS 12/31/2016 41 794.60 794.60

12/31/2016 Bill Wells Fargo Vendor 12/31/2016 41 768.03 768.03

12/31/2016 Bill Integrated Solutions Plus 12/31/2016 41 245.00 245.00

12/31/2016 Bill AT&T 12/31/2016 41 202.43 202.43

12/31/2016 Bill AT&T Mobility 12/31/2016 41 181.72 181.72

12/31/2016 Bill UPS 12/31/2016 41 50.00 50.00

Total for Current $6,994.83 $6,994.83

TOTAL $7,894.83 $7,894.83


Budget vs Actuals Year to DateJanuary - December 2016

Total

Actual Budget % of Budget

REVENUE

Board Luncheon 14,515.19 15,000.00 96.77 %

Dues - Membership 438,761.27 488,000.00 89.91 %

Dues - Sustaining Membership 7,750.00

Fundraising Events

Golf Tournament 12,000.00

Golf Sponsorships 5,070.00

Registrations 3,150.00

Total Golf Tournament 8,220.00 12,000.00 68.50 %

Total Fundraising Events 8,220.00 12,000.00 68.50 %

Merchandise Store 400.00

Misc Revenue 3,799.01 1,000.00 379.90 %

Program Service Revenue

Builder Standards 22,747.26 34,000.00 66.90 %

Builder Standard Shipping 501.00

Total Builder Standards 23,248.26 34,000.00 68.38 %

Communications Programs 6,500.00

Leadership Directory 1,250.00

Website 1,750.00

Total Communications Programs 3,000.00 6,500.00 46.15 %

Designation Program 19,400.00 20,000.00 97.00 %

Education Programs 17,330.00 10,000.00 173.30 %

Indiana Builder News 34,887.46 32,000.00 109.02 %

Total Program Service Revenue 97,865.72 102,500.00 95.48 %

Special Events 11,740.00 12,000.00 97.83 %

Total Revenue 582,651.19 630,900.00 92.35 %

GROSS PROFIT 582,651.19 630,900.00 92.35 %

EXPENDITURES

Bank/Credit Card Fees 1,413.44 1,000.00 141.34 %

Builder Standards 17,000.00

License Fee 8,592.00

Manuals Shipping & Handling 903.47

Total Builder Standards 9,495.47 17,000.00 55.86 %

Communications Programs 1,500.00

Leadership Directory Printing 1,585.23

Total Communications Programs 1,585.23 1,500.00 105.68 %

Designation Program 7,000.00

Instructor's Expenses 143.02

Instructor's Salaries 2,250.00


Total


Meals/Refreshments 553.40

Misc. 145.30

National Course Fee 6,176.29

Postage 138.34

Total Designation Program 9,406.35 7,000.00 134.38 %

Dues & Subscriptions 5,754.89 6,500.00 88.54 %

Education Programs 1,375.01 3,500.00 39.29 %

Golf Tournament 3,991.83 3,500.00 114.05 %

Health Insurance 49,696.82 49,000.00 101.42 %

Housing Protection 63,540.10

Indiana Builder News 16,500.00

Mailing Fee 960.27

Postage 2,409.28

Printing 11,707.53

Total Indiana Builder News 15,077.08 16,500.00 91.38 %

Information Technology 1,489.47 8,000.00 18.62 %

IT Contractor 3,098.20

Total Information Technology 4,587.67 8,000.00 57.35 %

Insurance 8,256.26 8,500.00 97.13 %

Meetings - Board & Committee 34,336.35 22,000.00 156.07 %

Membership Development 888.18 7,000.00 12.69 %

Miscellaneous Expense 3,445.01 1,000.00 344.50 %

NAHB Officer Travel 11,578.60 23,000.00 50.34 %

NAHB Staff Travel 5,655.13 7,500.00 75.40 %

Occupancy 37,452.82 40,000.00 93.63 %

Office Equipment 1,923.60 5,000.00 38.47 %

Office Expenses 5,000.00

Office Supplies 4,111.57

Postage 223.50

Printing 503.49

Telecommunication 4,883.77 5,000.00 97.68 %

Total Office Expenses 9,722.33 10,000.00 97.22 %

Payroll Taxes 22,930.43 33,000.00 69.49 %

Pension 22,441.00 25,200.00 89.05 %

Personal Property Tax 700.52 500.00 140.10 %

Pride of Leadership 3,893.84 10,000.00 38.94 %

Professional Services 15,000.00

Accounting 8,181.63

Legal 5,080.44

Total Professional Services 13,262.07 15,000.00 88.41 %

Public Affairs & Meetings 7,011.13 10,000.00 70.11 %

Salaries & Wages 359,579.75 420,000.00 85.61 %


Total


Special Events Exp 16,099.90 12,000.00 134.17 %

Staff State Travel 4,761.61

State Officer Travel 12,000.00

Website Expense 58.00

Total Expenditures 729,920.42 775,200.00 94.16 %

NET OPERATING REVENUE (147,269.23) (144,300.00) 102.06 %

OTHER REVENUE

Interest/Investment Revenue 52,784.79 15,000.00 351.90 %

Other Ordinary Income 40,000.00

Unrealized Gain/Loss on Investment 130,504.46

Total Other Revenue 183,289.25 55,000.00 333.25 %

OTHER EXPENDITURES

Depreciation 3,500.00

Other Expenses

Investment Management Fees 9,579.53 9,000.00 106.44 %

Total Other Expenses 9,579.53 9,000.00 106.44 %

Total Other Expenditures 9,579.53 12,500.00 76.64 %

NET OTHER REVENUE 173,709.72 42,500.00 408.73 %

NET REVENUE $26,440.49 $ (101,800.00) (25.97 %)


Notes to Management ReportsOther Ordinary Income Budgeted is Occupancy Costs Transferred from Building Fund. The transfer will not be recorded as income but is reflected on the budget for cash flow management purposes.

IBA 2017 Final Budget

(approved by IBA Board 12/16)

REVENUE & OTHER SUPPORT 2016 Budget 2017 Budget 2018 Projection 2019 Projection

Dues - General Fund 488,000 476,000 504,000 518,000

(3050 x $160) (2800 x $170) (2800 x $180) (2800 x $185)

Dues - Housing Protection Fund 0 0 0 0

Dues - Sustaining Membership 0 10,000 10,000 10,000

Builder News 32,000 33,000 33,000 33,000

Special Events 12,000 12,000 12,000 12,000

Board Session 15,000 15,000 15,000 15,000

Golf Tournament 12,000 12,000 12,000 12,000

Designation Programs 20,000 20,000 20,000 20,000

Education Programs 10,000 10,000 10,000 10,000

Builder Standards 34,000 37,400 37,400 37,400

Communication Programs 6,500 10,000 10,000 10,000

Royalties Income 0 0 0 0

Merchandise Store 400 0 0 0

Miscellaneous 1,000 1,000 1,000 1,000

TOTAL REVENUE & OTHER SUPPORT 630,900 636,400 664,400 678,400

EXPENSES

Builder News 16,500 16,500 16,500 16,500

Special Events 12,000 12,000 12,000 12,000

Golf Tournament 3,500 3,500 3,500 3,500

Designation Program 7,000 7,000 7,000 7,000

Education Programs 3,500 3,500 3,500 3,500

Builder Standards 17,000 18,000 18,000 18,000

Housing Protection Fund Expense 0 0 0 0

Communications Programs 1,500 1,600 1,600 1,600

Merchandise Store 0 0 0 0

Membership Development 7,000 7,000 7,000 7,000

Pride of Leadership 10,000 10,000 10,000 10,000

Salaries / Contracts 420,000 420,000 420,000 420,000

Payroll Taxes 33,000 33,000 33,000 33,000

Insurance-Health & Life 49,000 48,000 51,000 54,000

Insurance-General 8,500 8,500 8,500 8,500

Pension 25,200 25,200 25,200 25,200

Accounting/Legal/Professional 15,000 15,000 15,000 15,000

Credit Card Fees 1,000 1,500 1,500 1,500

Telephone 5,000 5,000 5,000 5,000

Information Technology 8,000 8,000 8,000 8,000

Office Equipment 5,000 5,000 5,000 5,000

Office Supplies/Printing/Postage 5,000 5,000 5,000 5,000

Occupancy 40,000 40,000 41,000 42,000

Personal Property Tax 500 500 500 500

Dues & Subscriptions 6,500 6,500 6,500 6,500

P/A & Meetings 10,000 10,000 10,000 10,000

Meetings-Board & Committee 22,000 25,000 25,000 25,000

NAHB Officer Travel 23,000 23,000 23,000 23,000

NAHB Staff Travel 7,500 7,500 7,500 7,500

State Officer Travel 12,000 12,000 12,000 12,000

Strategic Planning 0 0 0 0

Miscellaneous 1,000 1,000 1,000 1,000

TOTAL EXPENSE 775,200 778,800 782,800 786,800

TOTAL REVENUE & OTHER SUPPORT 630,900 636,400 664,400 678,400

TOTAL EXPENSES 775,200 778,800 782,800 786,800

NET REVENUE(EXPENSE) (144,300) (142,400) (118,400) (108,400)

OPTIONS TO BALANCE BUDGET

Occupancy Costs Transfer from Building Fund 40,000 40,000 41,000 42,000

Realize Interest from IBA's Investment Accts

Increase Non-Dues Revenue

TOTAL OPTIONS TO BALANCE BUDGET 40,000 40,000 41,000 42,000

OTHER REVENUE(EXPENSE)

Interest Income - Investment

Dividend Income - Investment 15,000 15,000 15,000 15,000

Capital Gains 0 0 0 0

Investment Expense (9,000) (9,000) (9,000) (9,000)

Realized Gain(Loss) on Investment 0 0 0 0

Unrealized Gain(Loss) on Investment 0 0 0 0

Depreciation (3,500) (3,500) (3,500) (3,500)

UBIT 0 0 0 0

TOTAL OTHER REVENUE(EXPENSE) 2,500 2,500 2,500 2,500

CHANGE IN NET ASSETS (101,800) (99,900) (74,900) (63,900)

Comprehensive. Sustainable. Responsible.

How much revenue does Indiana currently generate for road construction and maintenance?

In FY 2016, the state generated about $1.5B in dedicated road funding revenue through fuel taxes ($885M), sales taxes dedicated to road funding ($73M), various fees, licenses and permits ($334M), and Major Moves and Major Moves 2020 distributions ($206M). Of that amount, about $950M went to INDOT, about $500M went to local governments, and the remaining $50M was used to pay refunds and administrative costs.

In addition, Indiana received about $1B in road funding revenue from the federal government in FY 2016. Of that amount, about $750M was allocated to state projects and $250M was allocated to local projects. Finally, local governments generated about $84M in road funding revenue through the county option wheel and excise surtax. Therefore, in 2016, a total of about $2.6B was generated for road construction and maintenance for INDOT and local governments.

How much additional revenue is needed to fund state and local roads?

During the 2016 interim, the Funding Indiana’s Roads for a Stronger, Safer Tomorrow (FIRSST) task force studied road funding needs and confirmed that INDOT needs an additional $1.2B per year on average over the next 20 years to maintain existing state-owned highways and bridges, finish projects already underway, and take on new projects to add capacity, improve safety, and relieve congestion. A recent study from the Local Technical Assistance Program (LTAP) at Purdue University found that local governments need an additional $775M per year on average over the next decade to maintain locally-owned roads and bridges.

How does HB 1002 generate additional revenue for state and local roads?

HB 1002 would raise the per gallon user fee on gasoline, special fuel, and motor carrier surcharges by 10 cents per gallon effective July 1, 2017. The revenue generated would be shared between INDOT and local governments using the current revenue allocation formulas. Going forward, HB 1002 would index each user fee annually to keep pace with inflation and offset losses due to improved average fuel efficiency. The indexing formula includes factors that account for inflation (CPI-U) and the ability of Hoosiers to pay (annual change in personal income).

HB 1002 also includes a $15 annual registration fee that applies to all motor vehicles under 26,000 pounds and a $150 annual registration fee that applies to electric vehicles. For trucks with a gross weight above 26,000, HB 1002 raises annual registration fees by 5% in order to capture revenue from all commercial trucks that use Indiana’s roads, including those trucks registered under the International Registration Plan that are not based in Indiana. The revenue from these fees will be dedicated to the Community Crossings local matching grant program.

Additionally, HB 1002 would complete the process of dedicating all of the revenue generated by the sales tax on gasoline to road construction and maintenance. Only about 1/3 of gasoline sales tax revenues are dedicated to state and local roads under current law. HB 1002 would dedicate the remaining 2/3 of the revenue to road construction and maintenance by FY 2021.

Finally, HEA 1001-2016 granted cities and towns with a population of 10,000 or more the option to adopt a local option wheel tax and excise surtax. HB 1002 would extend that same option to cities and towns with a population of 5,000 or more.

House Bill 1002 FAQ

How much new road funding revenue will HB 1002 generate for INDOT and local governments?

In FY 2018, LSA estimates that HB 1002 would generate about $580M in new dedicated road funding revenue for INDOT and local governments. Of that amount, about $310M would go to INDOT and $270M would go to local governments. Cities and towns with a population between 5,000 and 10,000 would also be able to raise another $5M by utilizing new optional excise surtax and wheel taxes.

In FY 2021, when all elements of HB 1002 are fully in place, LSA estimates that HB 1002 will generate over $1.1B in new revenue for INDOT and local governments. Of that amount, about $745M would go to INDOT and $375M would go to local governments. Cities and towns with a population between 5,000 and 10,000 would also be able to raise another $9M by utilizing new optional excise surtax and wheel taxes.

Keep in mind that HEA 1001-2016 dedicated an estimated $100-120M per year in funding to the Community Crossings program, and these amounts are in addition to the new local road funding revenue that would be generated by HB 1002. Additionally, HEA 1001-2016 granted new revenue capacity under the local option excise surtax and wheel tax to both counties and cities and towns with a population greater than 10,000. In total, counties, cities and towns could raise an additional $360M by maximizing existing excise surtaxes and wheel taxes under their own authority.

Finally, if Indiana decides to pursue tolling, some early estimates suggest that tolling could generate another $500M per year in annual revenue (with a significant portion of that coming from residents of other states). With tolling as an option, HB 1002 would satisfy the State’s estimated annual funding need of $1.2B per year.

How much will HB 1002 cost the average Hoosier motorist?

HB 1002 is built upon the user fee principle. Therefore, the more one uses the roads, the more one pays. An average Hoosier motorist who drives 1,000 miles per month and gets 25 miles per gallon will purchase 40 gallons of gasoline per month. Therefore, a 10 cent per gallon increase in the gasoline tax will cost the average Hoosier motorist about $4 per month or $48 per year. HB 1002 also includes an additional $15 annual registration fee for all vehicles, which brings the total cost per Hoosier motorist to about $5.25 per month or $63 per year. Finally, keep in mind that per gallon fuel user fees will not just be paid by Hoosiers. Motorists from other states—including semi-trucks subject to the special fuel and motor carrier surcharge taxes—will shoulder a significant amount of the burden.

When was the last time Indiana raised per gallon fuel user fees?

The per gallon user fee on gasoline has not been raised since 2003 and the per gallon user fees on special fuel and motor carrier surcharges have not been increased since 1988. Advances in fuel economy have eroded fuel tax revenues while the cost of road construction and maintenance has continued to climb with inflation. Compare, for example, the amount of gasoline taxes paid by a driver who drives 1,000 miles per month in 2016 with a vehicle that gets 25 MPG—$4 per month—to the amount paid by a driver who drove 1,000 miles per month in 2003 with a vehicle that got 20 MPG—$5 per month. The 2016 driver is paying 20% less in gasoline taxes every month than the 2003 driver paid 13 years ago.

Does HB 1002 require tolling?

No. HB 1002 requires INDOT to explore Indiana’s tolling options by commissioning in-depth third-party study and by applying to the federal government for permission to toll existing interstates.

Why not use the state’s reserve accounts to fund roads and bridges?

As of July 1, 2017, Indiana is projected to have about $1.7B in state reserve accounts, which is the equivalent of about 40 days of state government spending. The additional funding need for state-owned roads and bridges is about $1.2B per year on average over the next 20 years, meaning that the State’s reserves could only cover state road and bridge funding needs for less than a year and a half. If local road funding needs were included, the State’s reserves would cover less than one year’s worth of the funding shortfall, leaving INDOT and local governments without any new revenue to take on critical road and bridge projects over the next 19 years.

Aside from the fact that Indiana’s reserves would not provide a long-term, sustainable source for funding roads and bridges, spending down Indiana’s saving accounts for nothing more than a short-term Band-Aid would cost Hoosiers in the long run. Prudent reserve levels protect taxpayers and critical government programs in the event of economic downturns and send a strong and clear message about Indiana’s fiscal stability to those looking to live or invest in Indiana. Prudent reserve levels are also critical to maintaining Indiana’s triple-A credit rating, an achievement which saves money for everyday Hoosiers. In fact, the Indiana Finance Authority estimates that borrowing costs for governments in Indiana are as much as 30% less than in states—like Illinois—that have not earned a triple-A credit rating.

Why not cut 3% across-the-board from state government budgets?

First of all, it is important to remember that 92% of the State’s $15B per year General Fund budget is dedicated to K-12 education (52%), higher education (12%), corrections and public safety (6%), and health and human services (22%). Only 6% of the State’s budget is dedicated to general government services, and the remaining 2% is allocated to maintain state-owned properties and pay leases. If the State were to cut 3% from all budgets across-the-board, including payments that support local schools, public safety and child welfare, the cuts would free up about $450M, an amount sufficient to cover only about one-third of the State’s annual road funding need.

It is also important to recall what the State has done to contain government spending over the past decade. In the aftermath of the Great Recession, the State managed revenue shortfalls by cutting government spending instead of asking Hoosiers to pay in more in taxes. Now that economic times are better, the State has focused on cutting taxes detrimental to economic growth and making strategic investments in education and other critical programs rather than restoring funding to government bureaucracy. In fact, the average state agency budget is about 30% less today than it was in FY 2009, and efforts led by the House Republican caucus have led to the elimination of 40 ineffective and inefficient boards and commissions and more than 400 government appointments. Finally, state government has also become more efficient and more productive. In 2005, the State had more than 35,000 state employees. By 2015, that number had been reduced to less than 28,000, a reduction of more than 20%.

Additionally, Indiana has reduced its state funded debt by 68% since 2005. This has been accomplished through the defeasance of outstanding bonds on state-owned facilities, cash funding state capital projects, and prioritizing the paying down of outstanding debts. This debt reduction would not be possible but for Indiana’s sound fiscal footing that has been the norm since Republicans took over in 2005.

What ever happened to the lottery money that was supposed to go to roads?

Revenues from the state lottery were never intended as a mechanism to pay for ongoing road and bridge funding needs. The original 1989 Lottery Act established the Build Indiana Fund as a repository for lottery revenues and appropriated money out of the fund for a variety of local projects around the state, some of which—but certainly not all of which—happened to be road projects. In addition to the money allocated to the Build Indiana Fund, the Lottery Act also directed lottery proceeds to the Teachers’ Retirement Fund (currently $30M per year) and the Local Police and Firefighter’s Pension Relief Fund (also $30M per year). In 1996, the General Assembly cut motor vehicle excise tax rates by 50% and used the Build Indiana Fund to replace the excise tax revenue lost by local governments. Today, of the $250M that is annually deposited in the Build Indiana Fund, $236M is sent to local governments as replacement revenue for the excise tax cuts. The remaining balance is used to support technology needs at libraries, K-12 schools, and universities.

I heard the gas tax was increased on January 1, 2017?

This is false. The gas tax has not been increased since 2003. The confusion stems from changes made in 2013 on how the state collects sales tax on gas. In short, the bill moved the point of sales tax collection from the gasoline retailer (i.e., the corner Shell station) to the entity that supplies the gasoline to the retailer (supplier, distributor, refiner, etc.). The rate change that was the focus of the recent news stories is a routine adjustment made on an automatic and monthly basis to adjust the sales tax to reflect month-to-month changes in the average price of gasoline per gallon, and it’s been happening this way every month since the new collection process was established in July 2014. So this adjustment is not “new” as it happens every single month. And these adjustments do not mean “8 to 10 cents more”. The monthly adjustments typically make a negligible difference at the pump. In this case, the per gallon sales tax rate increased just 0.2 cents (1/5 of a penny) from the December 2016 rate. And if gas prices go down, in say March, consumers would actually pay less in tax. Before the change in 2013, each retailer was required to prepay sales taxes to the DOR every month under the following formula: the average retail price of gasoline (as determined semiannually by the DOR), multiplied by the sales tax rate, multiplied by 80%. Each retailer was then required to reconcile monthly the amount of sales tax actually collected at the pump to the amount of sales tax prepaid. In 2013, SEA 479 created the new collection procedure for the state sales tax on gasoline. Under SEA 479, sales taxes—or more accurately, use taxes—are now collected from gasoline suppliers rather than gasoline retailers. Therefore, the use tax will be “baked in” to the price the distributor charges the retailer rather than added later to the amount paid at the pump. The bill requires the DOR to determine a use tax rate per gallon by calculating the average price of gasoline in Indiana and multiplying that amount by the state sales & use tax rate. The supplier will then remit to the DOR that amount for every gallon of gasoline sold to a gasoline retailer until a new rate is set. At a minimum, use tax rates must be recalculated on a monthly basis. However, the DOR must also recalculate the use tax rate every time that the average retail price of gasoline changes by more than 15%, up or down. Unlike the current system, no monthly reconciliation will be required. The bill also requires the DOR to publish a notice on its web site whenever the rate changes that specifies the source of the data used to determine the use tax rate.

To: IBA Local Executive Officers From: Rick Wajda, IBA Date: January 5, 2017 Re: IBA 2017 Local Association Membership Rebate Program The Indiana Builders Association Board of Directors approved a continuation and expansion of the membership rebate program at the 2016 December Board of Directors Meeting that will provide a great incentive for local associations across the state to increase membership in the federation. The membership rebate program will be in effect for calendar year, 2017. The Membership Rebate Program will utilize a 12/31/2016 membership base for each local association from the National Association of Home Builders (NAHB) monthly membership report. If a net increase in total membership for the local association occurs from the 12/31/16 base and the reported numbers from NAHB for 12/31/17, IBA will rebate back to the local association 50% of state dues for the year of each member that resulted in the net increase. The 50% rebate applies only to the net increase in membership. Example: ABC County Home Builders Association December 31, 2016 Membership # - 100 members December 31, 2017 Membership # - 110 members ($170 IBA dues x net increase of 10 members = $1,700 * 50% = $850.00) IBA would rebate back to the local association by end of first quarter of 2018 - $850.00.

In addition to the above program, IBA will also rebate back to the local association 20% of the state dues for 2017 ($170) for the retention of any new member recruited in 2016; assuming the local HBA has a net increase in membership for 2017, according to the NAHB Membership Report as of 12/31/17. Example: ABC County Home Builders Association New Members Recruited in 2016 - 50 members New Members Recruited in 2016 Retained in 2017 - 50 members ($170 IBA dues x retained members of 50 members = $170 * 50 * 20% = $1,700.00) IBA would rebate back to the local association by end of first quarter of 2018 - $1,700.00.

The IBA Board of Directors and leadership is excited about the continuation and expansion of this program in 2017. A strong membership base will not only benefit our advocacy efforts at the Statehouse, but will provide the local and state organization the financial means to continue their efforts in promoting safe and affordable housing across the state. Please call Rick Wajda with any questions at (800)377-6334 ext. 204 or via e-mail at: [email protected].

INDIANA BUILDERS ASSOCIATION

mailto:[email protected]

Bill Me: O Annually O Quarterly Payment Method: O Check (payable to IBA) O Credit Card

Name: Sponsorship Level:

Company Name:

Address:

City: State: Zip:

Phone: Email:

Card Number:

Name on Card:

Exp. Date: CVV: Zip:

Payment Information

Please send completed form to: Rick Wajda | Indiana Builders Association | 101 W. Ohio St., Ste. 710, Indianapolis, IN 46204

Email: [email protected] | Fax: 844-272-4932

Indiana Builders Association2017 Sustaining Dues Program

$5,000 Gold Level* (valued at over $8,500)• Prominently placed linked company logo

on IBA’s website home page for 6 months• Article in Indiana Builder News• 6 half-page features or 3 full-page features

in the Indiana Builder News • Event sponsor for IBA’s Housing and

Legislative Conference and Legislative Lunch

• Access to up to 3 private briefings withlegislative and peer-to-peer industry leaders

• Access to private fundraisers for Statewide and Legislative Leaders

• Access to private briefing with IBA PastState Presidents annually

• Recognition at all IBA events

*1/2 of annual commitment goes to IBA; 1/2 goes to ABBI, IBA’s Political Action Fund

$1,000 Legacy Club (valued at over $2,000)• Must be a Past State President of the Indiana Builders Association• LegacyClubbenefitssameasBronzeLevel

$2,500 Silver Level* (valued at over $5,500)• Prominently placed linked company logo

on IBA’s website home page for 3 months• 3 half-page features or 1 full-page feature

in the Indiana Builder News• Event sponsor for IBA’s Housing and

Legislative Conference• Access to up to 2 private briefings with

legislative and peer-to-peer industry leaders

• Access to private fundraisers for Statewide and Legislative Leaders

• Recognition at all IBA events

$1,500 Bronze Level* (valued at over $2,000)• 1 half-page feature in the Indiana Builder

News• Accessto1privatebriefingwithlegislative

and peer-to-peer industry leaders• Access to private fundraisers for Statewide

and Legislative Leaders• Recognition at all IBA events

Securing the Future of the

Federation

2017 Priority Focus

Explore a New Membership Model

Streamline NAHB’s Governance

Membership Model Update

Primary Drivers

• Ongoing financial pressures for local HBAs and NAHB

• Declining (and now flattening ) membership trends since 2007

• Changes in HBA profiles since 2007

• Changing environment in the industry (e.g. consolidation)

• Local HBA departures from Federation.

Membership Trends – 2005 to 2014

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Total Members 231,853 244,317 249,126 214,057 178,232 157,814 142,835 139,384 139,402 140,273

100,000

125,000

150,000

175,000

200,000

225,000

250,000

275,000

Local HBA Staffing

3

11

33

26

27

7

16

31

21

24

0 10 20 30 40

10 or…

5 to 9

2 to 4

One

Zero

Local HBA Full-Time Staff2007 vs. 2015 (Percentages)

2007 2015

0

0

15

52

34

0

1

14

41

44

0 20 40 60

10 or…

5 to 9

2 to 4

One

Zero

Local HBA Part-Time Staff2007 vs. 2015 (Percentages)

2007 2015

Local HBAs reported an average of 2 full-time staff positions and 1 part-time staff position in FY2015, compared to 4 full-time staff and 1 part-time staff in FY2007.

Single-Family Starts & Membership

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0

50,000

100,000

150,000

200,000

250,000

300,000

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

Sing

le-F

amily

Sta

rts

Build

er a

nd A

ssoc

iate

NAH

B M

embe

rs

Membership Single-Family Starts

HBA Disputes Since 2010

15%19%

33%

52%

0%10%20%30%40%50%60%

Competitionand Jurisdiction

Representation Personalities Finances andPerceived Value

Totals more than 100% due to multiple causes

Federation Net Revenue: 2012 - 2014

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

$200,000,000

2012 2013 2014

Mem

bers

hip

Reve

nue

NAHB State associations Local associations Membership

Membership -3.9%, Local Revenue 15.7%, State Revenue 8.7%, NAHB 0.1%

Federation Net Expense: 2012 - 2014Membership -3.9%, Local Expense 10.9%, State Revenue 0.3%, NAHB -0.8%

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

2012 2013 2014

Mem

bers

hip

Expe

nditu

re

NAHB State associations Local associations Membership

Locals by HBA membership size, 2007 vs. 2015

Guiding Principles

• Seek alternative means of meeting NAHB’s current “membership dues” revenue target with a revenue-neutral outcome (approximately $25M in 2016)

• Embrace a “Locals as Customers” philosophy to strengthen NAHB’s relationships with, and value to, the local HBA and its representatives (i.e., EOs, Directors, volunteer leaders, etc.)

Core Characteristics: Affiliation Fee

HBA affiliation fee would replace the current “per member” model, decoupling fees paid to NAHB from membership.

This approach is based on the concept that a predictable, fixed expense would enable locals to further diversify and tailor their efforts to drive higher membership growth.

Core Characteristics: Affiliation Agreement

New affiliation agreement would be executed outlining each party’s respective responsibilities and obligations, including minimum standards for local HBAs, to establish a higher “baseline” for member service.

Example of a potential baseline could be maintaining 50 builder and associate members to maintain exclusive rights for recruitment within a given territory.

Core Characteristics: HBA Services

NAHB could provide additional value to HBAs through new and improved services, particularly for smaller locals with limited staff and/or capacity.

Services could include back office services, dues collection, Federation-wide database administration, marketing support, and detailed economic reporting/data mining.

“Benchmark & Grow” Strategy

• HBA affiliation fees would be fixed from 1/1/18 - 12/31/19 based on a “benchmark” of an HBAs 3-year average membership.

• A minimum affiliation fee of $2,000 would be established.

• Beginning in January 1, 2020 HBA affiliation fees would be indexed based on some formula which would reflect the health of the local HBAs, including possible declines (for example, changes in HBA expenses).

Example:

– HBA with 3-year avg membership of 300 pays $60,000 affiliation fee for two years – If expenses increased by 2%, affiliation fee would increase to $61,200– Likewise, if expenses decreased by 2%, affiliation fee would drop to $58,800– If needed, the affiliation fee would also be adjusted by a minimal growth factor (e.g. CPI)

Considerations for Further Study

• Explore impact on NAHB’s relationship with individual members;• Explore improvements in reporting and sharing member contact

information;• Address impact on state associations• Forecast future growth and/or revenue and expense volatility• Quantify demand for additional services offered;• Determine required bylaw changes;• Explore implementation strategy (role for pilot program);• Explore governance impact.

Governance Efforts Updated

Board Transition

Leadership Council (Policy Board)• Provide guidance on all policy Issues, priority focus and products & services;

• Members would have limited liability; and

• Be comprised of experienced and engaged members.

Corporate Board• Governance and operational oversight of the Association; and

• Comprised of a limited number of elected Directors.

Streamline Committees in Bylaws• Provide Flexibility

• Task or issues focused committees added/eliminated as needed

• Key operational committees and charges would be in the Bylaws:o Association Planningo Audito Budget & Financeo Federal Government Affairso Governance (Nominations, Resolutions)o State & Local Government Affairs

Clarify Leadership Roles: NACs

• Bylaws would document the role of the NAC Moderator;

• Provide governance support and oversight of the areas, inclusive of the State Representatives; and

• NAC job description would be reviewed and approved by the Board every two years and could be amended as the Association’s priorities change.

Clarify Leadership Roles: State Reps

• Bylaws would document the role of both the State Reps and the State Rep Moderator;

• State Reps would be responsible for communication/action coordination at the state level;

• State Reps to assist in implementing National operation requirements (affiliation agreements, director compliance, etc.); and

• Promote the Association’s products and services.

Clarify Leadership Roles: Committee Chairs• Bylaws would document the role of all Committee Chairs; and

• Chairs would be required to report to the NAHB Leadership (Officers, Leadership Council/Policy Board and Corporate Board) as requested.

Streamline Executive Board

• Increase flexibility of this critical body;

• Limit number of voting participants; and

• Support input by broad group of participants.

Next Steps

Continuing the Discussion

• Continue vetting concepts at all levels of the Federation;

• Capture outstanding considerations/questions;

• Explore broader impacts of proposed concepts; and

• Develop and share implementation considerations.

Let Us Know Your Thoughts

[email protected]

Resolution asking NAHB Pilot a New Fixed Fee Funding Model by January 1, 2018 WHEREAS, NAHB’s senior officers and staff have demonstrated extraordinary leadership in reaching out, listening and better understanding the challenges facing HBAs around the country and putting forth a vision for change that is inspiring hope across our federation; WHEREAS, the NAHB’s Association Planning Committee (APC) has researched and spent countless hours examining potential NAHB funding models that might better facilitate and support the future growth and strength of both the NAHB and its affiliated HBAs; WHEREAS, the APC has unveiled an alternative funding model for discussion that we believe, will provide a more positive foundation for NAHB and the federation as a whole in the future; WHEREAS, NAHB has received a great deal of constructive feedback on the outlined framework presented by the APC and there is growing excitement and momentum about the prospect for positive change, particularly if the 990 expense reset concept is removed from the model outlined at IBS; WHEREAS, NAHB has seen an increasing number of local associations shrink and have difficulty attracting small and medium sized builders and subcontractors to their membership; WHEREAS, NAHB has an unprecedented opportunity to create a funding model that can provide greater stability for both NAHB and its local and state associations around the country while also better encouraging local creativity when it comes to new membership structures and future growth; WHEREAS, any time spent discussing dues increases or other possible funding structures, without testing them, is time which goes unspent on the more important issues facing the members that the NAHB represents; WHEREAS, the model outlined by the APC would also create a predictable, automatic and more stable funding system for NAHB; WHEREAS, local HBAs in at least one state have successfully funded their state association for more than a year in a manner that is very similar to the model proposed by NAHB’s Association Planning Committee; WHEREAS, we the signatories to this resolution are willing to proceed and implement a new way of sending resources to NAHB and are prepared to collectively participate in the system envisioned by the APC; NOW, THEREFORE, BE IT RESOLVED that the NAHB Executive Board utilize its powers outlined in Article III Section 1 of its bylaws to allow any willing HBA or collective statewide group of local HBAs to begin implementing the payment model outlined by APC beginning no later than

January 1, 2018 and that this special “group category” membership promotion be extended by the Board of Directors if such pilot activity proves successful and/or until a new or alternative NAHB funding model is put into place; and BE IT FURTHER RESOLVED that the NAHB Executive Board recognize this formal request pursuant to Article III. Section 1 (A)(1) and, at a minimum, name the members and future members of the signers of this resolution as a designated “group category” for the express purpose of participation in testing and evaluating the merits of an NAHB fixed affiliation fee pilot program; and

BE IT FURTHER RESOLVED that NAHB continue to work with its stakeholders, including all local and state HBAs, to further improve as needed an enhanced foundation that will continue to promote the strength and long term growth of a united federation of home builder associations. ADOPTED by the associations noted below and affirmed by their authorized leaders on the

dates as indicated:

Signed: ___________________ Date:___________________

Signed: ___________________ Date:___________________

Signed: ___________________ Date:___________________

Signed: ___________________ Date:___________________

IBA Executive Committee Meeting · Thurston - HPF Liquid Account 0484 1,454.47 Thurston - IBA...

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