Volume 7, No. 5 • May 2014
4410 Fairway Boulevard • Wichita Falls, TX 76308 • P: 940.692.2211 • F: 940.692.2214 www.nthba.com
General Membership Meeting May 8, 2014 Kemp Center for the Arts 1300 Lamar 11:30 A.M.
Dates to Remember • May 1, 2014 Deadline for Scholarship Applications • June 6, 2014 Parade of Homes Kick-Off Lunch – Sikes Lake Center sponsored by Landmark Title • June 7-15, 2014 Parade of Homes • July 23-24, 2014 Sunbelt Builders Show – San Antonio Texas • July 22-25, 2014 TAB Summer Board Meetings – San Antonio Texas
“Alone we can do so little; together we can do so much” - Helen Keller
• July 28, 2014 Deadline for Housing Hall of Honor Nominations All members are encouraged to attend any and all events & meetings conducted by TAB and NAHB. Information can be found at www.texasbuilders.org and www.nahb.org.
New Members Lonestar Wastewater..................................Jeff Boyd First Choice Builders, Jacksboro....Jake Hettinger
Welcome! Welcome!
Renewals Archer Title...............................................Jean Taylor ATMD Insurance...........................Shawn Blacklock Hamilton Bryan..................................Steve Fairchild Herring Bank............................................R.C. McGill Holstead Brick.......................................Bill Holstead Howard Contracting........................Lance Howard Nortex Housing Finance.......................Dave Clark Skyline Developers...................................Mark Lam
Thanks for Renewing!
From the President Dear Members, 2nd Article While John Harmon, Jose Garcia, and I attended the Texas Association of Builders meetings in February, several items were on our agenda. First, the Government Affairs Meeting was outstanding. They spoke about the association’s involvement with several candidates to help elect the most Builder Friendly prospects. They interview candidates to learn where they stand on the Builders issues. They relay that information to the members, to help them to be informed when the time comes to elect our officials. One candidate TAB supports will be in the runoff election this month, David Dewhurst, who has been in office for several years and has been a huge supporter for the building industry. TAB supports David because his is much more builder friendly than his component Dan Patrick. They also informed us on the upcoming Transportation Funding in the next session of the Legislature. And the rising support for a required Workman’s Compensation in our state. It was duly noted how much the Builders of this state are opposed to a mandatory Workman’s Compensation Law. The association is also, organizing a committee to deal with the water issues that are plaguing our state. This committee will work with, the different state offices, and stay updated on the happenings of the water issues. This is one of the most crucial issues of our time that I felt compelled to volunteer to be on this committee. The committee also discussed the new upcoming Energy Codes, and OSHA Regulations. John Harmon will be giving a report on the upcoming Energy Codes, while also keeping us updated on the Meeting with City Leaders on Code issues. As a note, TAB had its first Bowling Tournament to raise fund for HomePAC, and our own Vice-President, John Harmon took second place. 61% /2*2 2/1/< SGI 30
May Birthdays Steve Fairchild................................................06 Lee Grace.......................................................10 Eddie Blackburn.............................................15 Charles Beaver...............................................31
Happy Birthday!
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Calendar of Events General Membership ................................................May 8, 2014 Meeting...............................................................................11:30AM Membership Meetings &.........................................May 13, 2014 Education Committee Meeting.....................................10:00AM Publications & Communications...........................May 13, 2014 Committee Meeting........................................................11:00AM Parade of Homes & Special....................................May 14, 2014 Events Committee Meeting...........................................10:00AM Scholarship Committee..........................................May 14, 2014 Meeting...............................................................................11:00AM Government Affairs..................................................May 15, 2014 Committee Meeting........................................................11:00AM Budget & By-Laws.....................................................May 22, 2014 Committee Meeting........................................................10:15AM Board of Directors...................................................May 22, 2014 Committee Meeting........................................................11:00AM Memorial Day (Office Closed)..............................May 26, 2014
2013 /2014 Officers & Directors President - Barney Brock Vice President - John Harmon Associate Vice President - Johnny McClane Treasurer - Martin Litteken Secretary - Tim Sawyer Immediate Past President - Steven Hinson Builder Directors David Bedingfield - 1yr Steven Klasse - 1yr Bobby Rowland - 2yr Troy Thompson - 2yr
Assoicate Directors Randy Schaffner - 1yr Sharon Tucker - 2yr
State Director - Jose Garcia Alternate State Director - Steven Hinson Life Director - Chuck Dennis Executive Vice President - Teri Gibson
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(940) 691-3641 Continued on pg 12 )D[ ‡ E-Mail bryanl@waggonercarpetone.com
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Continued from page 3 Yield applies to balances up to $10,000; .25% APY applies to balances over $10,000 when monthly qualifications are met. .05% APY applies to balances if qualifications are not met. Federally insured by NCUA.
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Texoma Community Credit Union 3800 Sheppard Access Road 4019 Southwest Parkway (940) 851-4000 TIMES RECORD NEWS Founded in 1907, the Times Record News is the only newspaper published in Wichita Falls. Reaching 14 counties in North Central Texas and southern Oklahoma, the Times Record News is an award-winning digital-media company that has received numerous awards, including Katy Awards from the Dallas Press Club, the Texas Association of Managing Editors and the Associated Press-Oklahoma News Editors Association for such skills as spot news, general news reporting, column writing, photography, editorials, team effort and design. Content is accessible and updated throughout the day online at timesrecordnews.com and in app form on smartphones and tablets. In addition to producing content for multiple platforms, the Times Record News also offers a diverse digital product Continues on page 7
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NTHBA Member since 1972
Vice President Report “It’s not the critic that counts. The credit belongs to the man in the arena. If he fails, at least he fails while engaged.� -Theodore Roosevelt April has been a busy month for the NTHBA. April 1st we had a builders briefing at the NTHBA office to bring everyone up to speed on the topics of interest at the local, state and at national level. April 10th the association held its annual Family Night at The Good Times Party Barn compliments of Rick Belz. Well over a hundred attended this event. Everyone seemed to enjoy themselves. Thank you First Bank Crew for providing the hamburgers, hot dogs and all the trimmings. TAB established a H2O Taskforce committee of which Barney Brock and I have been appointed for Region B. To enlighten you on the Texas Water Planning & Funding Process, senate bill 1, 2 & 3 started the (TWDB) Texas Water Development Board and 16 Regional Planning Groups who basically establish a wish list for each region of this state regarding what they feel are top priority water projects. In November 2013, House Bill 4 passed which set up (SWIFT) State Water Implementation Fund of Texas and (SWIRFT) State Water Implementation Revenue Fund of Texas to lend money to municipalities throughout the state that are approved through the TWDB to help fund these water projects. With funding these wish list will become reality. The primary motivation for the TAB Government Affairs Committee to create the taskforce is to monitor the implementation of the HB 4 and SWIFT funding as it progresses on the accelerated time table this year with passage of HB 4. Each task force member will attend and remain engaged with the Regional Water Planning Group as they prioritize projects they would like to see funded. Most importantly TAB wants to make sure the interest of the home building industry is being represented and discussed in each region as the state moves toward approving funding for these crucial water supply projects in the years ahead. There are over 3200 water projects that have been identified throughout Texas that will be prioritized and reviewed by the Texas Water Development Board. The first Regional Water Planning Group meeting for Region B was April 23rd at 10:00 A.M. Jose Garcia, Randy Schaffner, Teri Gibson and I attended to represent the NTHBA. The Regional Water Planning Group compiled a list of prioritized water projects they will be submitting to the TWDB by June 1st. The next Region B Regional Water Planning Group meeting is scheduled for July 30, 2014 at 10:00 A.M. to make any changes or clarifications requested by the TWDB in order to have the final copy turned in by August 1, 2014 deadline. As mentioned in the April Reporter I have been appointed to an energy taskforce committee created by the TAB Codes & Standards Committee. . Its purpose is to address the significant increase in energy code stringency over the last several code cycles that considerably increase the cost of a home. The taskforce is to find rational solutions to recommend to the Codes & Standards Committee and ultimately to the TAB Government Affairs Committee. New homes are not the problem. The department of energy cites residential and commercial building account for 40% of national energy consumption, however, residential construction built in the past 10 years only accounts for 2.5%. I will keep the NTHA members informed as these two task force move forward. Continues on page 6
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Continue to pray for James & Mary McKie, our members’ health, families, and businesses as well as our armed forces, our country, our country’s leaders, and rain. 5
Justifying
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The Wichita Falls Chamber of Commerce held their annual meeting on April 17, 2014 at the MPEC. Teri Gibson & I attended the event representing the NTHBA. I saw many other NTHBA members in attendance. Darron Leiker, City Manager, Brigadoon General Kindsvater with SAFB 82nd Training Wing, Dr. Terry Patton of MSU, Dr. Dusty Johnston of Vernon Regional College and Darrell Coleman of Bond of Build all spoke on the concerns of today. A couple of things of interest began with Darron Leiker mentioning a study conducted for Wichita Falls that stated with no inflow in the lakes and the worst temperature on record similar to 2011 the city would have 24 months of water. This study also stated there is only a 1% likelihood we will ever run out of water. SAFB Brigadoon General Kindsvater stated the Department of Defense, the Air Force & Nato have a great relationship with Wichita Falls and all is well in regards to SAFB continuing its mission in Wichita Falls. He did mention SAFB golf course will be closing by June 1, 2014, it is losing $10,000. Per month and is underutilized. It will go under reconstruction to accommodate a bike trail, jogging trail and disc golf course, which will better serve the airman at SAFB. I spoke with Dr. Dusty Johnston with Vernon Regional College and encouraged him to expand his tech school to help our industry have skilled laborers. He stated they have an HVAC technician program and are looking to expand into plumbing and the electrical field. I will continue to follow up on this important issue. I encourage you to get “Engaged� with the North Texas Home Builders Association and help serve on one of the many committees, donate to HOMEPAC and vote in the upcoming elections. We need to move into the future with both are schools and water supply. This will help the future of Wichita Falls, your children and your grandchildren.
the Cost Membership
Sales & marketing is the area within your business where HBA memberships and sponsorships come from, therefore approved. With any sales & marketing initiative, short or long term, dollars spent have to bring back dollars earned. The definition of return on investment (ROI) is simple; "A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio."
ROIs are sometimes misunderstood or unclear because all factors are not fully considered or explored. One of the most direct reasons why home builder association memberships are dropped is the lack of immediate business. NAHB estimates that fifty-five percent of new members drop out after one year. One year may seem like a long time Continues on page 7
May 26, 2014
Long Name. Big On Service. Martin Litteken, Jr., P.E.
6
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"Membership ROI CAN Be Measured"
I say again just as this article began “Get in the Arena�
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2406 Kell Boulevard Wichita Falls, Texas 76309-5326 Phone: (940) 322-6450 Fax: (940) 723-6006
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to invest without a return but I would offer to you my opinion; that year is needed to familiarize yourself with your investment. To expect any size-able financial return, that you can actually touch and say "this came directly from my company's investment" may not be realistic. Unless you have a product or service that has no competitors and is an absolute "must have" for builders and the industry you need to have patience in the HBA investment. During your first year of membership, or subsequent years when you are measuring the HBA's value to your bottom line, there are 3 areas that I would like to highlight for you that will bring you an ROI 3 metrics specific to your HBA investment that you may not be considering: 1. Member Benefits: Do you fly? Rent cars? Need insurance? Buy computers? Send packages via FedEx? Member benefits that bring you cash back in savings bring you back a return on your investment. Just recently I had an insurance quote given to me from a participating NAHB Members Discount (click here for full list of savings) and the savings would pay for my membership dues 3 years in a row. These are above and beyond what your state or local HBAs may offer as member benefits. 2. Industry Specific Education: your HBA membership has access to some of the top educational programs in our industry that can help you train your sales representatives.Your reps could benefit from training in (to name just a few of many) GREEN/sustainability, aging in place or just to understand the builders' business and how your products or service interact. Whether it's one or two classes or a full compliment to achieve a building industry specific designation, NAHB Education is there for you as an "in house" trainer." This education is offered to non-members, but at a much higher rate. Training one rep in industry specific education alone pays for your HBA membership and your developing a building industry professional, a major plus for you. 3. Fight for housing: associates who work directly with builders should incorporate into their ROI thought process "if it affects builders it will affect your company's bottom line." HBAs help builders with legislative and regulatory initiatives that help fight for housing. These efforts deliver more units per parcel or bring projects to fruition at a faster pace. That means more immediate sales volume opportunity for you, possibly at a better GP with a pipeline of business opportunities for future company growth, the key word; opportunity. The HBA investment should also be applied towards the recurring revenue stream from your current customer base and how advocacy helps with that constant stream. The primary focus should be on your customers' and potential customers' ability to buy your product or service because of the HBA's role in the fight for housing. If you're a company that sells to both builders and associates, the same principle applies; "what affects them will affect your company's bottom line." 80% of associates and their employers don't understand how the association's fight for housing efforts has helped with their business opportunities. Your local HBA membership is also a national membership. Many articles are available through NAHB that highlights the national fight for housing. Your local HBA can share with you their efforts to help grow the building industry specific to your region or within your state. Again, these above three metrics, that if applied correctly in your sales and marketing discussions, can demonstrate a clearer ROI, one that includes the tangible as well as the intangible. Once you've experienced the awareness of what the above three metrics bring in
portfolio. In fact, Times Record News advertisers can target customers across all Times Record News platforms, as well as on popular websites, like Facebook, Google and Yahoo. Kim Holly brings 28 years of experience to her role as advertising representative covering home builders and Realtors. She also is in charge of Homes Magazine. For the past several years, Kim has been helping advertisers move into the digital age offering marketplace products to reach all demographics. She also can help customers with search-engine marketing to improve the reach of their company website, do online advertising. She loves her customers. “They have become family over the years.” Kim and her husband, Jay, have two daughters and two granddaughters. Likewise, as the newspaper’s advertising writer for the past 25 years, Lee Grace has written about home builders, Realtors, and real estate issues, providing an outlet for information concerning for the real estate community. He and his wife, Jackie, have two grown children. Both Kim and Lee have served on the board of directors and on numerous committees of the NTHBA, helping the association grow and prosper. For all of your advertising needs, call Kim at 720-3482 or Lee at 763-7507 and let the Times Record News team help your business grow.
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value, the intangible quickly becomes tangible. HBA dues are minor in the grand scheme of sales & marketing assigned dollars and could be a major ROI for you and your company. I haven't discussed a fourth metric; an expansion of your sales efforts through social networking and HBA volunteerism, where a massive ROI can take place if your company's HBA representative is integrated properly. P.S. What you were originally looking for: Sales attributed directly to your HBA membership. There are so many factors involved; 1. Are you a name in a directory or do you attend general membership meetings? 2. Do you just do more than attend the general membership meetings, meaning do you interact with others while there? 3. Is your company representative (you?) accomplished in the art of developing relationships? Only you can answer those three questions. Gaining new customers directly from your membership depends not on the association but on you, your company's offering and your ability to influence. The above three metrics, however, give you, at the very least, a return on your membership investment. Regards, Mike
Commercial/Residential Sales, Service, Installation
The Original Since 1921
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Consideration of Statewide Energy Code Legislation Issue Overview: The increasing stringency of energy code mandates poses a serious risk to housing affordability in the State of Texas. Furthermore, the objective value added and cost savings of energy efficiency features continues to be severely undervalued in the appraisal process, meaning that further energy efficiency mandates may threaten home sales. Certain Texas municipalities continue to mandate above-code energy mandates that lack market justification in order to increase the cost of housing in their jurisdiction. Builders are also faced with standards that vary significantly from jurisdiction to jurisdiction. Therefore, the Dallas BA asks TAB to explore a legislative outcome that would prevent the enactment of energy mandates that lack market justification and that would foster certainty in the market by creating a standardized and statewide approach for the adoption of energy code standards. Doing so will insulate Texas homebuyers from costly federal mandates and provide a statewide solution for a global problem.
CITY OF WICHITA FALLS BUILDING INSPECTION DEPARTMENT INFORMATION CENTER BY BOBBY TEAGUE, BUILDING & CODE ADMINISTRATOR/ASST. DIRECTOR New House permits through March (half way through fiscal year) were 51. We did 99 last year. Basically we are up by 3% and spring and summer usually see an increase in permits. I would guess we would be 10% up for the year. Hopefully that holds true. Please be watchful for information printed in this section. It is being created to inform members of changes within the Building Inspection Department.
Arguments in Favor of this Approach: • New homes are not the “problem.â€? o The Department of Energy cites that buildings (residential and commercial) account for 40 percent of national energy consumption. However, new residential construction (built in WINDOWS, DOORS the last 10 years) accounts for only 2.5 percent of national AND MORE! energy consumption. The same figures are true when it comes 522 Beverly Drive to greenhouse gas emissions. Furthermore, half of this energy is 723-1436 Wichita Falls, Texas 76309 lost in the grid that transmits electricity to the home. o Per square foot, new homes consume less than two-thirds the energy of an average existing home. This was the case in 2001, before more stringent energy standards were enacted. Always Remember to do Business with Association Members! • The 2012 and 2015 IECC are not cost effective. BRYAN WAGGONER o The Department of Energy considers energy codes to be cost effective if they demonstrate a payback over a 30-year 3907 Kell BoulevarE t WJDIJUB 'BMMT t Texas 76308 period even though most homeowners do not stay in their home for nearly that long. Buyers surveyed by NAHB demand a SERVICES cost recovery within a 7-year period. OCE of Texas o According to an NAHB analysis, the 2012 IECC adds an &HUWLÂżHG &RQVWUXFWLRQ (OHYDWLRQ 6XUYH\ Fencing incremental cost of $7,203/home in Climate Zone 3 (North
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Home Builders celebrate spring with a ‘Family Night’ A night of fun and fellowship helped celebrate the beginning of spring for members of the North Texas Home Builders Association as they gathered at the Good Times Party Barn, compliments of Rick Belz, on Thursday, April 10, for “Family Night.” President Barney Brock, the officers and staff of NTHBA arranged several fun games in a relay competition. Eight six-person teams competed in relay race games that included a balloon pop, spoon relay, hula-hoop toss, and bounce-the-ball into the trash can. Kids enjoyed the bounce house and riding on the “barrel” train during the evening as well as balloons, ball and hula hoops after the games were over. Members of the winning team drew for the grand prize of a flat screen television that was won by Erin Henson. Several attendees won door prizes provided by Rick Belz of Builders Wholesale and the North Texas Home Builders Association. Approximately 100 persons enjoyed a meal of burgers and hot dogs with all the trimmings that was provided by First Bank.
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Texas) with a full cost recovery occurring in 15.3 years. • The Dallas BA successfully amended the 2012 IECC through the Council of Governments process to cut the cost of the code by more than half. However, the vote was very close and came against heavy opposition from natioal environmental activists. The success of future local advocacy efforts is far from assured. o The 2015 IECC will be even more costly than the 2012 IECC • Although building tightness and mechanical tradeoffs were restored, minimum ceiling Rvalues increase the cost of construction by an average of $1,342/home while saving consumers only $14/year. In other words, the consumer will recover this cost in 99 years. • Wall assembly R-values in the 2012 IECC increased cost by $1,199/home in Climate Zone 3, offering an energy savings of around $50/year with cost recovery occurring in 24 years. • The Dallas BA was able to get this standard rolled back to the 2009 energy code. However, keeping this standard as-is for the 2015 code cycle is highly unlikely, meaning that builders will have to install exterior insulation at R5 or above. o The 2015 IECC provides a performance-based (HERS) approach, but it is not in parity with more prescriptive options that continue to pick market winners and losers due to heavy influence from manufacturers in code proceedings. • Builders in Climate Zone 3 will be required to obtain a HERS 51 or below. According to RESNET’s analysis of homes built in 2013, less than 8 percent of homes were able to meet this level that will soon be part of a mandate for all homes.
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11
TAB Member Rebate Program www.HBArebates.com What would you think if you could get a rebate for your loyalty to many of the nation’s leading housing industry Manufacturers? Well, now you can regardless of your volume! We’re happy to introduce the TAB Member Rebate Program, a free member benefit, aimed at increasing your bottom line. For the minimal effort of informing us about the products you use, and telling us when you close on a home or project, you’ll be putting money back in your pocket. When you participate in the TAB Member Rebate Program, every home you build can earn you rebate checks! Remember, both Builders AND Remodelers qualify for the TAB Member Rebate Program. Over 70% of the Builders & Remodelers who participated last year received back in rebates more than they paid in annual dues to the Association!