NORTH TEXAS HOMBUILDERS ASSOCIATION
Volume 9, No. 1 • January 2016
4410 Fairway Boulevard • Wichita Falls, TX 76308 • P: 940.692.2211 • F: 940.692.2214 www.nthba.com
From the President The first couple of months of my presidency have been a whirlwind. Since being installed on October 2, 2015 I have attended several committee meetings, the young professionals poker tournament, the TAB winter committee and board meetings in Austin and code overview committee meetings with Bobby Teague from the City of Wichita Falls to name a few. The building industry is continuously changing. Just when you think you’re on top of the game the state or federal government decides to come up with more regulations and code changes to keep up with. This is why the North Texas Home Builders Association does it’s very best to keep up with important issues to communicate back to its members. Being in the information age that we are, you don’t always have time to read each and every email or piece of literature that you receive. That is why it is particularly important to read this newsletter, view the web site and check the Facebook post. There is a lot of information you may be missing out on from the value of your membership that can be saving you enough money to more than cover your dues, rulings on the US Waters, information about the certification changes on lead base paint, and information about open comment periods regarding the clean power acts final rule which closes on January 21, 2016. In this month’s newsletter you can even find contest rules. If you have information about a new product or an article that can be republished that would be pertinent to the home building industry please feel free to email it to Teri at nthba.teri@gmail.com for review. We will certainly try to get it in our newsletter or post it on the web site if there is not a conflict of interest and we have plenty of room. Keep your eye out for the upcoming events in 2016 as well as the changes for the 2016 Parade of Homes. We already have a great line-up. Together let’s make 2016 a dynamic year for the North Texas Home Builders Association. Thank you for your continued support. We couldn’t do it without you.
Special Thanks to our 2016 NTHBA Partners: Diamond Atmos Energy Platinum First National Bank Guarantee Title
What’s
INSIDE
• Energy Code Training
• Membership, Meetings & Education Committee Contest • NAHB Member Savings • Christmas Party & Operation Santa Claus By: Lee Grace • Chamber Chatter By: Henry Florsheim • Most Homebuilders are Small Businesses By: Natalia Siniavskaia
New Members Servpro Wichita Falls....................................Aaron Ryan Donna Adams Insurance........................Donna Adams
Welcome!
Renewals ABC Supply...................................................Felix Castillo Atmos Energy............................................Sharon Tucker Carolyn Adams Homes.........................Carolyn Adams Fidelity Bank..........................................Lance Cannedy Morrison Supply....................................Savannah Brady Times Record News...........................................Kim Holly
Thanks for Renewing!
January Birthdays
Alan Hinson......................................................................1 Chuck Vergauwen.........................................................1 Johnny McClane............................................................2 Jimmy Lance Howard..................................................10 Randy Schaffner...........................................................12 Charles Barr...................................................................18 Cindy David...................................................................25 Don Wright.....................................................................27 Ashton Gustafson..........................................................28 Bobby Rowland.............................................................30 Charles Vergauwen......................................................31
Happy Birthday!
Calendar of Events New Year’s Day.............................................January 1, 2016 Office Closed............................................................................ General Membership....................................January 7, 2016 Meeting.......................................................................11:30AM Membership, Meetings &............................January 12, 2016 Committee Meeting....................................................4:00PM Publications & Communications...............January 19, 2016 Committee Meeting..................................................11:00AM NAHB International.................................January 19-21, 2016 Builders Show, Las Vegas......................................................... Budget & By-Laws........................................January 26, 2016 Committee Meeting..................................................10:30AM Board of Directors........................................January 27, 2016 Meeting.......................................................................11:00AM
General Membership Meeting January 7, 2016 Kemp Center for the Arts 1300 Lamar 11:30 A.M Speaker Jackie Hoegger Hoegger Communications Presentation Social Media for your Business
2016 Dates to Remember • January 7 General Membership Meeting • January 19-21 NAHB International Builders Show, Las Vegas. NV • February 4 General Membership Meeting • February 11 Energy Code Training Luncheon • March 3 General Membership Meeting • March 30-31 TAB Winter Committee & Board Meetings, San Antonio, TX • April 1 Parade Home Entry Deadline • 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 • November 3 General Membership Meeting • November 17-18 TAB Fall Committee & Board Meetings, Austin, TX.
Backdoor Theater Backdrop for North Texas Home Builders Association Annual Christmas Party By: Lee Grace
Members of the North Texas Home Builders Association had a great time starting the Christmas season off with fellowship with one another on Thursday, Dec. 3, at the Backdoor Theatre. Ninety-two NTHBA members and guest filled the tiers of tables that gave everyone a great view to watch the featured performance of “Over the River and Through the Woods.” The evening began with an Italian-themed dinner of parmesan chicken, grilled vegetables, bow-tie pasta, salad, garlic toast and warm bread pudding to go along with the evening performance. Members enjoyed the suspense of waiting to see who held the winning ticket for each of the tickets drawn from an assortment of door prizes consisting of holiday treats. Bob Hayes with Breegle, Abbey Carpet & Flooring walked away with the 24-inch flat-screen TV donated by Harmon & Holcomb Homes. More than $600 was raised for HOMEPAC during the evening. Laughter filled the room as performers did an excellent job portraying two sets of Italian grandparents who enjoyed the continued company of their grandson. Upon learning he had landed a job promotion that would take him thousands of miles away, they tried luring him by introducing him to an attractive granddaughter of a friend of his grandmother’s. The program was filled with lots of twists, turns and an occasional sad thought-provoking moment but overall it was a comical presentation. Kudo’s to the actors for their fabulous act. As attendees made their way out they expressed many kind words of how they enjoyed the evening. 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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Those attending the Christmas Party as well as several members who were not able to attend donated toys that were gathered at the NTHBA office for the Wichita Falls Fire Department’s Operation Santa Claus. Randal Reel, chairman of Operation Santa Claus, was presented with the toys on Friday, Dec. 11, 2015, by President Eddie Holcomb, Vice President Michael Grassi and Executive Vice President Teri Gibson. Operation Santa continues to be generously supported by the Home Builders Association. We say thank you for always being willing to support the North Texas Home Builders Association.
In an effort to engage members during the meetings, the Membership, Meetings & Education Committee is going to focus on member participation. This month during the meeting there will be a few drawings Kathy Gregory Jerry Phillips for some door prizes. Everyone that 940.249.5293 940.249.5288 attends the meeting will be entered Nicki Bomer Karen Anderson into the drawing one time. 940.249.5291 940.249.5292 Additional Entries will be awarded based on 4245 KEMP BLVD., STE. 420 • WICHITA FALLS, TEXAS 76308 NTHBA Facebook posts as follows: Every “Like” = 1 additional entry Every “Comment” = 2 additional entries WINDOWS, DOORS Every “Share” to or from the group page = 4 AND MORE! additional entries 522 Beverly Drive Please do not hesitate to share any community 723-1436 Wichita Falls, Texas 76309 events that you attend or participate in with the group. Good Luck to everyone and make sure to keep up to dateRemember with our Facebook Always to dopage! Business with Association Members! Thanks, Jake Munholland
Membership, Meetings & Education Committee Chairman
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Housing Under Construction – November Data BY ROBERT DIETZ ON DECEMBER 17, 2015 • (0)
Due to the surge in multifamily development and the ongoing modest growth for single-family, there has been a noticeable shift in the market shares of housing units under construction. The Census housing starts data illustrate a trend to more multifamily units in the production pipeline. Using the seasonally adjusted Census estimates, at the end of November there were 549,000 multifamily units under construction. This is in contrast to just 416,000 single-family units. The multifamily share of units under construction, which averaged just under 32% from 2000 to 2006, now stands at almost 57%. These data detail the potential for growth in the single-family market. Keep in mind that for the October new home sales data, there were just 226,000 newly built homes for sale, a 5.5 months’ supply. And of that total, only 52,000 were completed, ready to occupy inventory. NAHB expects the growth rate for multifamily starts to slow, while single-family increases. These changes will alter the market shares of units currently under construction.
Chamber Chatter Over the past five years or so, Wichita Falls has seen amazing growth in the retail and restaurant sector. Burlington, At Home, Bricktown Brewery, Red Robin...the announcements just keep on coming. Now it's been made public that Walmart is considering putting a Neighborhood Market near the intersection of Barnett and Southwest Parkway, an underserved area when it comes to groceries. Every time an announcement like this is made, I hear two kinds of responses. The first is excitement over another option for consumers. The second goes something like "We don't need that....why doesn't the city get us this other thing instead?" Your economic development team doesn't go out and recruit retailers. Those companies will come here if there's an opportunity to make money; if there's not, they won't. It's that simple. When I see new retail and restaurants opening up, I'm excited that they see opportunity here. That's not happening in every community these days. Let's celebrate that it's happening here! Let's build something extraordinary! Henry Florsheim President & CEO henry@wichitafallschamber.com
5 new home permits were pulled in December all were pulled by NTHBA Builder members bringing the total of permits pulled in the City of Wichita Falls to 58 for 2015. 47 of the 58 were pulled by NTHBA Builder Members.
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Value of NAHB Membership 2015 Mid-Year Update
NAHB economists have put a dollar value on selected member benefits and advocacy achievements through the first eight months of 2015. Below are four examples. A more comprehensive review will be available in January at the Builders’ Show. Final Clean Power Plan Includes NAHB-Backed Change Estimated value: $363.7 million Key changes championed by NAHB on behalf of members are included in new regulations released Aug. 3 by President Obama and Environmental Protection Agency (EPA) Administrator Gina McCarthy that are aimed at reducing greenhouse gas emissions from the utility sector. This package includes the final Clean Power Plan, which establishes provisions to control power plant emissions. EPA’s proposed rule included provisions that would have forced states to adopt more stringent energy and building codes requirements, disproportionally impacting new construction as part of a boarder effort to reduce GHG emissions from existing power plants. NAHB raised concerns about the proposal’s detrimental impact on voluntary energyefficiency programs, energy-related building codes, and ultimately housing affordability. EPA acknowledged NAHB’s concerns and made several important changes to the final rule. Government Sponsored Enterprises Multifamily Volume Cap Estimated value: $210 million Fannie Mae and Freddie Mac operate under volume limits for their new multifamily business, which have been set each year since 2013 in FHFA's Conservatorship Scorecard. For 2015, FHFA set the volume limits at $30 billion for each GSE. Fearing the potential impact of market disruptions as the Enterprises rapidly approached their volume limits, NAHB called on FHFA to take the steps necessary to restore stability in the multifamily lending market. On May 5, 2015, FHFA responded by announcing that the $30 billion limits would remain in place for both Enterprises, but affordable lending exclusions from the volume caps would be expanded. NAHB Helps North Carolina HBA Defeat Onerous Property Tax Proposal Estimated value: $145 million (increase in revenue for North Carolina home builders) The North Carolina Home Builders Association achieved a significant victory with the enactment of HB 168, Exempt Builders’ Inventory legislation. The legislation exempts from local property tax improvements to land being developed for residential purposes as well as the construction of single-family and duplex dwellings being offered for sale. NAHB’s Economics and Housing Policy Group assisted in this state-level victory by providing analysis detailing the economic benefits of the tax change, including jobs gained and tax revenue impacts. Savings for NAHB Members Attending 2015 IBS Estimated value: $1 million NAHB members saved $1.04 million on registration at the 2015 International Builders' Show over non-member pricing. In fact, for many of the approximately 17,000 NAHB members who attended the IBS and the 5,800 who participated in the show's educational programming, the money they saved on registration fees easily surpassed the cost of their NAHB membership.
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BY NATALIA SINIAVSKAIA on DECEMBER 7, 2015 • (1)
Based on the recently released 2012 Economic Census data, new NAHB research shows that residential construction remains the industry of independent entrepreneurs with 81 percent of homebuilders and specialty trade contractors being self-employed independent contractors. Even among establishments with paid employees, the industry is dominated by small businesses, with two-thirds of homebuilders and three out of four specialty trade contractors generating less than 1 million dollars in total business receipts. Among homebuilders, multifamily general contractors tend to be largest, with more than 55 percent of companies generating over $1 million and close to 23 percent generating more than $10 million in 2012. Less than 8 percent of for-sale builders (who build on land they own and control) and under 2 percent of single-family contractors (who build on land customers own) crossed the $10 million mark in 2012. Under the most recent US Small Business Administration (SBA) size standards, the vast majority of residential construction companies qualify as a small business. The most recent small business size limits for all types of builders is $36.5 million, for land subdivision $27.5 million, and $15 million for specialty trade contractors. By these standards, almost all remodelers and at least 96 percent of homebuilders, 94 percent of land developers, and 97 percent of specialty trade contractors easily qualify as a small business.
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Home building establishments are highly specialized and subcontract out a significant portion Remember do Business with Association Members! ofAlways the construction work to to subcontractors who can more efficiently perform specific construction BRYAN WAGGONER activities. In the case of single–family general contractors and speculative builders, subcontractors 3907 Kell BoulevarG ‡ WLFKLWD )DOOV ‡ Texas 76308 account for more than a third (36 percent) of the (940) 691-3641 total construction revenue. For multifamily general )D[ ‡ contractors, 63 percent of the annual construction E-Mail bryanl@waggonercarpetone.com receipts are generated by subcontractors. Specialty trade contractors who, by definition, specialize in specific activities (e.g., pouring concrete, site preparation, plumbing, painting, and electrical work) subcontract out only 10 percent of the work. The cost of materials purchased by establishments for subcontractors is not included in the cost of construction work subcontracted out but rather counted in the net (in-house) value of construction work. Formerly ATMD Insurance
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Because residential construction establishments are highly specialized and subcontract out a significant portion of construction work to others, they maintain relatively few construction workers on their payrolls. Single-family general contractors on average have four employees on their payroll, with only three directly engaged in homebuilding. Non-construction workers include supervisory employees above the working foreman level, in addition to executive, accounting and other professional employees in routine office functions. Speculative (or for-sale) builders’ payrolls average under six workers over the course of a year with close Continues on page 11
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to two-thirds being non-construction workers. Multifamily general contractors and specialty trade contractors maintain largest annual payrolls, averaging more than 13 and 9 workers over the course of the year, respectively. Specialty trade contractors also stand out for reporting the highest share of construction workers, with three out of four payroll workers working in construction. Residential remodelers average less than four workers on their payrolls.
The complete NAHB report is available to the public as a courtesy of Housing Economics Online.
What’s included in the 2-hour class? Know the Law Texas Building Energy Performance Standards Overview Who does it affect? TCEQ Nonattainment vs. Attainment Areas Paths to 2015 Energy Code Compliance Mandatory Requirements Prescriptive Path Performance Path ENERGY STAR Path *NEW* Energy Rating Index Path Takeaways The main “gotchas” to be aware of moving forward Q&A Without HB 1736, housing affordability and code compliance would continue to suffer as future energy codes are updated under existing laws, due to the ever increasing inflexibility and extraordinary high stringency levels of the most current energy requirements.
Texas Association of Builders 2016 Energy Code Training Easing and Improving State Energy Code Mandates on Builders and Consumers The result of HB 1736, 84th Texas Regular Session
TAB pursued and won a significant victory during the 2015 Legislative Session by passing HB 1736 into law. This laudable piece of legislation implements intelligent and rational energy code policy that will result in significantly better compliance rates and allow for more cost effective implementation of the state energy code.
Register today! North Texas Home Builders Association Date: February 11, 2016
Training specialists brought to you by
Time: 11:30 AM – 1:00 PM Location: Good Times Party Barn, 3136 Arena Road, Wichita Falls, TX. 76310 LUNCH INCLUDED FREE to members
Thank you to our statewide sponsors
Fee: $25.00 for Non-Members Register: By calling Teri at 940-692-2211 or email nthba.teri@gmail.com Deadline to register is February 2, 2015 5PM Payment must be made prior to event. Checks can be mailed to 4410 Fairway Blvd, Wichita Falls, TX 76308