Volume 9, No. 4 • April 2016
NORTH TEXAS HOMEBUILDERS ASSOCIATION
4410 Fairway Boulevard Wichita Falls, TX 76308
P: 940.692.2211 F: 940.692.2214
www.nthba.com
From the President It’s time to take advantage of your membership. The North Texas Home Builders Association has a lot of opportunities to network as well as promote your business and increase education for you or someone you know. Family Night is Thursday, April 14th. This is a great time to visit members in a relaxed atmosphere, meet their families, enjoy great food sponsored by First Bank, participate in some games and have a lot of FUN. The 64th Annual Parade of Homes is scheduled for June 3rd, 4th, 5th, 10th, 11th and 12th. If you’re a builder, this is a great opportunity to show case your talents by entering a home in the parade. Even though the deadline has past you can still pay a $250.00 late fee along with your entry fee and enter until April 22nd. If you are a builder who is not entering a parade home or an associate you can purchase an ad in the Housing Guide to help support the NTHBA and promote your business. This publication will be distributed to each person touring the parade homes as well as in racks throughout Wichita Falls. The past attendance has ranged from 1300 people to over 2100. Many of these parade attendees are looking for ideas for their wish list to use when they get ready to build their new home or remodel their existing homes. Advertising in the Housing Guide is a great way to get your name in the hat for when their ready to make that call. Scholarships are available from the NTHBA for those who are working toward a higher education or certification training in the construction business. You don’t have to be a recent high school graduate to qualify. If you or anyone you know would like to know the qualifications visit our web site at www.nthba.com and download the qualifications and application. Deadline for submission is May 1st. Members can also apply for scholarships through the Texas Builder Foundation and the National Association of Builders. As you can see you’re not limited to only your local association benefits and opportunities, once you became a member of the NTHBA you are also a member of the Texas Association of Builders and the Continues on page 3
Special Thanks to our 2016 NTHBA Partners: Diamond Atmos Energy Platinum First National Bank Guarantee Title
What’s
INSIDE
• Our New Addition to the NAHB Senior Officer Team • Overtime Rule One Step Closer to Implementation • State Rep. James Frank addresses combined Realtor-Home Builder luncheon By: Tim Sawyer
• TAB 70th Anniversary 1946-2016 • Family Night
Renewals Classic Builders..........................................Michael Grassi
Thanks for Renewing!
April Birthdays Adam Wood....................................................................6 Chris Fairfield....................................................................7 Scott Flinn.........................................................................9 Rick Belz..........................................................................18 Brandon Litteken...........................................................28
Annual Family Night Thursday, April 14, 2016 Weeks Park Pavilion Off Southwest Parkway 6:30PM Join us for food, games, and fun! Meal provided by First Bank
Happy Birthday!
Calendar of Events Deadline for Parade of Homes Entries...............April 1, 2016 April Fool’s Day.....................................................April 1, 2016 Membership, Meetings, & Education................April 5, 2016 Committee Meeting....................................................3:00PM Young Professionals.............................................April 5, 2016 Council Meeting...........................................................4:00PM Government Affairs..............................................April 6, 2016 CommitteeMeeting...................................................11:00AM Publications & By-Laws......................................April 12, 2016 Committee Meeting (Lunch Meeting)....................11:30AM Parade of Homes & Special Events.................April 13, 2016 Committee Meeting..................................................11:00AM Family Night........................................................April 14, 2016 Weeks Park Pavilion.....................................................6:30PM Budget & By-Laws..............................................April 20, 2016 Committee Meeting..................................................10:30AM Board of Directors..............................................April 20, 2016 Meeting.......................................................................11:00AM
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2016 Dates to Remember • April 1 Parade Home Entry Deadline • April 14 Family Night • May5 General Membership Meeting • June 3 Parade of Homes Kick-Off Lunch • June 3-5,10-12 Parade of Homes • July 7 General Membership Meeting • July 25 Housing Hall of Honor Nominee Deadline • August 1-5 Sunbelt Builder Show & TAB Summer Committee & Board Meetings, Grapevine, TX. • August 11 General Membership Meeting • September 1 General Membership Meeting • October 6 General Membership Meeting • October 10 Annual Golf Tournament • November 3 General Membership Meeting • November 17-18 TAB Fall Committee & Board Meetings, Austin, TX. • December 1 Annual Christmas Party
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National Association of Builders. If you didn’t notice it in the March Reporter on page 10, TAB offers several items for builders such as the semi-annual contract CD package, the Model Construction Safety Program and Jobsite Safety Standards Package and Member Rebate Program. TAB also offers programs for both the builder and associate such as the product depot, National Purchasing Partnership benefits and more. NAHB offers an array of benefits that include an extra 2% off for contractors at Lowe’s, 20% off from FTD Flowers, $500 $1000 off a new GMC product along with many others. To take full advantage of these benefits visit the TAB web site at www.texasbuilders.org or www.nahb.org and start saving today! If you need help accessing any of these benefits call the NTHBA office at 940-692-2211 for assistance. Along with the benefits of your membership also comes obligation. We encourage you to read the Reporter and your emails so you are aware of every opportunity to network and support the NTHBA. Without your support monetarily and physically we could not continue to be the voice for the home building industry. The home building industry is our livelihood. Please help the association grow by recruiting new members. See article from Membership, Meetings & Education Committee in this issue regarding upcoming membership drives. Thank you for the many hours you volunteer to help the association and thank you for the many dollars you spend to support the association. YOU ARE APPRECIATED and it does not go unnoticed. I look forward to seeing you at Family Night!!
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State Rep. James Frank addresses combined Realtor-Home Builder luncheon By: Tim Sawyer State Representative James Frank spoke to the combined membership of the North Texas Home Builders Association and the Wichita Falls Association of Realtors at the luncheon on Thursday, March 3, at the Kemp Center for the Arts. Rep. Frank jokingly declined comment regarding the current presidential race saying there were too many concerns to address is a short meeting. Continues on page 4
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2015 /2016 Officers & Directors President – Eddie Holcomb Vice President – Michael Grassi Associate Vice President – Jake Munholland Treasurer – Scott Flinn Secretary – Sharon Tucker Immediate Past President – John Harmon Builder Directors David Bedingfield 1yr Steve Lane 1yr Doug McCulloch 2yr Steven Klasse 2yr
Associate Directors Cindy David 1yr Kolter Lukert 2yr
State Director - Barney Brock Alternate State Director - Steven Hinson Life Director - Chuck Dennis Life Director - Jose Garcia Executive Vice President - Teri Gibson
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2525 Kell Blvd., Suite 100 Wichita Falls, TX 76308 940.763.2100 (main line) 940.763.2101 (fax) lcannedy@fidelitybankwf.com
Lance Cannedy
Martin Litteken, Jr., P.E.
2406 Kell Boulevard Wichita Falls, Texas 76309-5326 Phone: (940) 322-6450 Fax: (940) 723-6006
Please Please keep keep our our members, members, their their families, families, their their businesses, businesses, our our country, country, our our country’s country’s leaders, leaders, our our veterans, veterans, and and our our enemies enemies in in your your prayers. prayers. Continue Continue to to pray pray for for those those we we know know who who have have special special issues issues going going on on in in their their lives lives that that need need extra extra prayers. prayers. 4
Rep. Frank chose to speak on the importance of local and state government relative to the federal government. He feels the best government is that which is closest to the people being affected because it is easier to find solutions to problems. “Whereas at the federal level, the wheels grind a lot slower. Most people want the decisions that affect them made at the local level. When a debate is lost at the City level that is when it is moved up.” He made the point that all laws are restrictive to some degree and must be won at all three levels, Local, State, and Federal. He reiterated his feeling that decisions should be kept as close to home as possible. Rep. Frank expressed the importance of communicating with our local officials. Know what you want to say before expressing your opinion. “Don’t just vent, know the subject matter and offer solutions.” Rep. Frank stated that when he entered office he didn’t know it all and still doesn’t. He relies on his constituents to help him fully understand the issues and concerns they face. He encouraged folks to study and fully understand the bills that affect them. He reminded the audience that the legislative session runs from the second week in January for 140 days every two years. He said now is the time to let your feelings be known on issues that are important to you. Rep. Frank stated that a few things he is keeping an eye on are the school finance bill, oil and gas concerns, and long-term water issues. He said it was good news that the 25-percent Franchise Tax cut has taken place. Rep. Frank also spoke positively about the new Guide IT business that was coming to downtown. He stated the new company would create about 90 new jobs. Rep. Frank acknowledged the work of Ken Hill is bringing Guide IT to town. Rep. Frank took a few brief questions before closing.
Our New Addition to the NAHB Senior Officer Team Days go by and they turn into weeks. Weeks followed by months and before you know it another year is crossed off. In the world of the National Association of Home Builders (NAHB) a year can take a year or, if you're running for third vice chairman of the senior officer team, it can seem like a lifetime. I know for Greg Ugalde, our new addition to the senior officer team, this past year was a combination of both. It went by like a blur but it didn't seem like the day of election would ever come. It did and it was worth the wait. Greg is an outstanding builder leader from Connecticut and devoted friend of our industry and one that I have personally and proudly served with on more than a few occasions, most recently as fellow BUILD-PAC officers. I asked Greg to give our federation a look at who he is and first glance of how he will be as one of our national leaders rising towards chairman. Ladies and Gentlemen, Greg Ugalde My Message to Our Federation I’m celebrating five weeks today as a member of the Senior Officer team. And so far, it’s been a wild ride. Don’t get me wrong: Being elected Third Vice Chair during January’s NAHB International Builders’ Show in Las Vegas is certainly a huge personal and professional milestone and a great responsibility, and I am very grateful for your support. In the beginning, as you are trying to digest what everybody in the Federation is thinking, seeing everything that the Senior Officers deal with on a daily basis, it’s exactly like trying to drink though a fire hose. But what I learned in the year of preparing for this position, what I heard as I talked to builders, remodelers, developers and trade partners around the country and what I know now about the depth and breadth of your association and its commitment to our business – well, I think that’s even more important. First of all, the resiliency of our members is absolutely amazing. We have just been through the worst recession in our recent history, and those companies that survived are taking the lessons they learned through the hard times and starting to thrive in many parts of the country.
What’s holding these businesses back? Well, I don’t have to tell you that it’s getting harder to find employees and subs. Here in the Northeast, where I build homes, it’s not quite as noticeable as in other areas of the country where I campaigned. So many people left the construction industry during the downturn and haven’t returned. That’s why workforce development is a top priority for NAHB right now. We need a skilled labor force, and we need to spread the word that home building is a great career. I am amazed at some of the great programs our HBAs have launched, from job fairs and career days and community charitable events to generate interest in the trades. Another issue we are paying close attention to is appraisals. New homes are worth more than some appraisers seem to realize or banks are willing to acknowledge. We’re keeping the lines of communication open and the pressure on – and have seen some success – but will keep working. We are certainly encouraged to see one 2016 Presidential campaign include the Housing Industry in its campaign platform. This has to open the door for housing to be a major issue. Advocacy is one of our Federation’s strengths and a personal core belief and strength as well. We have to take advantage of the Presidential election opportunity before us – watch for more details. Fewer workers means fewer members, and many of our HBAs continue to see flat growth, especially in markets where home building still lags. That means Continues on page 7
Commercial Services
3301 Kell Blvd., Wichita Falls, TX 76308
John Thompson Mike Sharp Robert Masters
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Don’t forget about our ongoing of the game! I look forward to seeing you all at social media contest with Family Night. Facebook. We will pick back up in May with the drawing. Those who have been commenting, liking Thanks, and sharing on Facebook Jake Munholland Membership, Meetings & Education Committee Chairman throughout February, March & April will receive the extra tickets accordingly. Those who have attended the March GM Meeting, Family Night on April 14th and RSVP to attend the May 5th GM Meeting will receive tickets for each. WINDOWS, DOORS The NTHBA has signed up to compete in the AND MORE! NAHB Membership Drive. NTHBA will be focusing 522 Beverly Drive 723-1436 Wichita Falls, Texas 76309 on gaining members in May & September of 2016. TAB also has as 2 for TAB membership drive going on for the entire year. The committee will be reviewing the rules for both drives and Always Remember Business Association Members! information will be senttotodo members viawith email. BRYAN WAGGONER Start making your list of people you would like to bring on as a new member so you will be a head 3907 Kell BoulevarE t WJDIJUB 'BMMT t Texas 76308
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there are fewer experienced, longtime HBA members to tell the story of NAHB membership and how it’s helped their businesses – and I know it certainly has helped mine. So that’s another huge priority for your association: To figure out how to make membership more relevant to today’s home builders and trade partners and keep our Federation strong. I have found that people are definitely willing to embrace change to better our organization, but there has to be an educational process with that, one that involves the stakeholders and the general membership. It’s very much appreciated by our membership when they are able to contribute to the process, as long as we don’t drag it on to the extent that we become immobile and can’t change. And on the national level, we are certainly encouraged to see one 2016 Presidential campaign include the Housing Industry in its campaign platform. This has to open the door for housing to be a major issue. Advocacy is one of our Federation’s strengths and a personal core belief and strength as well. We have to take advantage of the Presidential election opportunity before us – watch for more details. We are a great industry. We don’t just believe in dreams, we build them. I can’t tell you how proud I am to be your representative for these next challenging, rewarding years.
NTHBA Member since 1972
2801 Kell East
Phone (940) 692-5734
Wichita Falls
Fax (940) 692-0391
Texas 76308
Best Regards, Greg Submitted by Michael Kurpiel, CGA, CGP
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Overtime Rule One Step Closer to Implementation Filed in Capitol Hill, Codes and Regulations, Labor, Safety and Health on March 16, 2016
In a move that could have major ramifications for members of the residential construction industry, the U.S. Department of Labor (DOL) has sent its final rule changes expanding who is covered by overtime laws to the Office of Management and Budget (OMB). The rule would impact employees who were previously exempt from the overtime requirements, such as construction supervisors and outside sales staff, among other administrative employees. The new rule would double the federal overtime salary threshold from $23,660 to $50,440 and, for the first time ever, index the salary threshold annually. By 2030, employees who make less than approximately $69,720 would be eligible for overtime. This could force many small builders to scale back on pay and benefits, as well as cutting hours to avoid overtime requirements.
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The issue is a top priority of the administration, and President Obama is racing to release the rule now in a bid to thwart potential congressional efforts to overturn the measure. It is expected that the final rule will be released in April and will likely take effect by August. NAHB has been working diligently to fight the proposed overtime rule. NAHB Chairman Ed Brady testified before Congress last fall against the proposal. NAHB is also working with congressional allies and stakeholder groups to see that an appropriations rider to stop the rule is included in this year’s budget. While NAHB will fight vigorously, it is important for our members to be prepared. For more information, email Suzanne Beall at NAHB or call her at 800-368-5242 x8407.
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TAB Area II Vice President Visits NTHBA
TAB Area II Vice President Gene Lantrip was a guest at the North Texas Home Builders Association Board of Directors meeting Tuesday, March 23rd. Gene has been supporting the NTHBA for a while now by participating in the annual golf tournament, attending several General Membership luncheons, giving to HOMEPAC on behalf of our association and has become an overall good friend of the NTHBA. Gene is dedicated to his position as Area II Vice President so much he did not hesitate to break away from a 5 day old granddaughter to spend time with our association. Those of you who have grandchildren know; that’ real dedication. Below is an update from Texas Association of Builders Gene reported on to the NTHBA Board of Directors. Texas Association of Builders Update Summary
TAB 70th Anniversary 1946-2016 Economic Forecast
• Population Growth in Texas. By 2050, population will grow from 25 million to 45 million. • Oil industry downturn, the diversification of industries in most areas has been able to support the economy • In the 12 months ending in November 2015, a total of 101,025 permits were issued, 3.37 percent more than in the previous year. • More than 6,000 multi-family building permits issued in November 2015, 38 percent more than in November 2014. During the 12 months ending in November 2015, a total of 68,302 permits were issued, 4.28 percent more than in the previous year. • During the 12 months ending in November 2015, a total of 294,374 existing single-family homes were sold, 4.0 percent more than in the previous year.
LEGISLATIVE UPDATE Election Season
March Primary Results
• THANK YOU MEMBERS for voting in the Texas Primary Election during the early voting period and on Election Day! Many candidates expressed their appreciation for HOMEPAC's efforts and our member's voter support. Continues on page 11
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• Most of the 150+ HOMEPAC-supported and/or local HBA-supported candidates won the primary, with the exception of five candidates (Jon Cobb, SD 24; Rep. Marsha Farney, HD 20; Kevin Downing, HD 60; Adolfo Lopez, HD 77; Rep. Debbie Riddle, HD 150) • As a result of some tight races, there will be 14 run-off races on May 24. • General Election: Nov. 8, 2016
Interim Committee Hearings
• TAB Staff has attended and/or testified at the following committee hearings: • Senate Intergovernmental Relations Committee regarding natural disaster preparedness planning and coordination on the rebuilding of housing and infrastructure • House Education Committee - regarding our industry’s workforce needs and best practices we are implementing at a local level • Senate Select Committee on Property Tax Reform and Relief - regarding the property appraisal process • And monitored many other hearings
Prop 1 Transportation Update
• Proposition 1, which dedicates a portion of oil and gas tax revenue to the state highway fund, was approved last November by Texas voters. The 200 planned Prop 1 projects will result in more than 800 miles of rehabilitated highways; nearly 500 miles of new highway lanes; 114 bridges replaced, widened or rehabilitated; and an additional 159 miles of passing lanes on rural highways.
Legislative Wins for TAB 84th Legislative Session by the numbers
• 6,276 bills filed /1300 monitored by TAB • In 140 days, TAB staff attended around 400 committee hearings for 48 committees.
Energy Codes Bill (HB 1736)
• Establishes a 6 year minimum cycle for energy code updates for residential construction. • Updates the state energy code for new one- and twofamily homes to the 2015 energy code. • Creates a new alternative performance path Energy Rating Index for compliance with the state energy code. • Allows homebuilders to build more energy efficient homes at more cost effective prices and gives consumers and homebuilders more energy efficiency options.
Condo Owner Protection Bill (HB 1455)
• 1/3 of new housing products will be/are condos. • Helps to ensure that condo unit owners are provided with adequate information to make an informed decision that affects their private property, protect unit owners from resale and refinance limitations due to unknown cases involving their property, and prevent frivolous lawsuits against builders and developers. • Protects condo owner’s right to vote and builder’s right to cure. • Amendments to the declaration can only be prospective, not retrospective. Transportation Funding (SB 5 & SJR 5) • Dedicates $2.5 billion from general state sales tax to the state highway fund, if the overall revenue from the 6.25% sales tax exceeds $28 billion (beginning 2017-18 FY). • Dedicates 35% of any vehicle sales tax revenue above $5 billion, beginning in 2019-20 FY (an extra $250 million annually).
• Is in addition to the $1 billion allocated to TxDOT under Prop 1 that was passed by voters last year.
Tax Relief Package (HB 32, SJR 1, SB 1760)
• Totals $3.8 million in tax relief. • 25% permanent reduction in the franchise tax, effective Jan. 2016. • $10,000 increase in the homestead exemption – from $15,000 to $25,000
Prohibition of Real Estate Transfer Tax (SJR 1)
• Prohibits the state from enacting a law that imposes a real estate transfer tax.
TWIA (SB 900)
• Allows the opportunity for Texas to address the lack of accessible and affordable windstorm coverage along the coast by including incentives to bring private insurance coverage back into the market and by funding TWIA reserves in a fair, consistent and even manner.
Metal Recycling (HB 2187)
• To address metal theft, the bill requires recyclers to issue cash transaction cards to sellers of metal. Without an issued card a recycler would only be able to pay by check, money order or direct deposit.
TAB Defeated the Following Bills Statewide Impact Fee (HB 3984 by Rep. Ramon Ramirez)
• Would have required every city in Texas to impose an impact fee of at least 20% of the maximum fee allowable by law, in addition to existing impact fees being collected. • Excess fees and regulations have a negative effect on the cost and affordability of new homes and apartments.
Fire Sprinklers (HB 4051 by Rep. Allen Fletcher)
• Would have repealed existing law and given municipalities the authority to require the installation of costly fire sprinkler systems in new residential construction over the objection of homeowners. • Would have added a significant cost to the price of a home, potentially resulting in more than 20,000 Texas households being priced out of the market. • Current law, as passed in 2009, prohibits cities from mandating fire sprinklers in new one or two family homes.
Builder and Contractor Registration (HB 3148 by Rep. Eddie Rodriguez)
• Would have made fundamental changes to the homebuilding industry by requiring construction contractors to register with the Texas Commission of Licensing and Regulation (TDLR).
Worker Misclassification Bills (including HB 434 by Rep. Senfronia Thompson) & Workers Comp Bills REGULATORY UPDATE
The temporary stay of enforcement on OSHA’s Confined Spaces Standard ended on March 8. The confined space standard applies to workers who enter spaces that are not designed for continuous occupancy and are difficult to exit in the event of an emergency, such as manholes and crawl spaces. NAHB continues to negotiate with OSHA to clarify the rule's application to residential home building. This is why your membership is so important to the North Texas Home Builders Association. TOGETHER WE MAKE A DIFFERENCE.
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Once again the NTHBA is accepting scholarship applications. Deadline is May 1st. Applications & Guidelines can be found on the NTHBA website, or call the NTHBA office at 940.692.2211 to make arrangements to receive one. Applications are open to all ages as long as they meet the application requirements.