December 2017 reporter

NORTH TEXAS HOMEBUILDERS ASSOCIATION

4410 Fairway Boulevard Wichita Falls, TX 76308

Volume 10, No. 12 • December 2017

P: 940.692.2211 F: 940.692.2214

www.nthba.com

From the President I hope everyone had a wonderful Thanksgiving!

Your membership in the North Texas Home Builders Association, also grants you membership in the Texas Association of Builders (TAB) and the National Association of Builders (NAHB). While the NTHBA continues to be involved with changes or additions to regulations that occur at the local level, both State and National have lobbyist and government relations staff who are constantly working on our behalf. These individuals have the daunting task of reading through thousands and thousands of proposed bills.

Many that may never be introduced and some that will have countless hours of members testifying in order to get it passed or have it thrown out.

With a legislative session being every two years, there is little time for rest. The year in between the Legislative session is where most of the material is being devised in order to be introduced when session begins. This is where TAB or NAHB are putting together their interim list which allows them to be prepared as they follow its progress. Every legislative session TAB and NAHB work tirelessly for their members which allow them to continue their business of building houses. The mission for each of us is to keep the American Dream alive and affordable.

One of the hardest things I’ve found to do since I have been a member is explain the value of membership. The advocacy roll of the local, state, and national associations is the overwhelming reason a member should need to see the value of membership.

This year, help the NTHBA communicate the importance of membership by helping them understand the value of our advocacy and let’s grow our association. Ask someone you know to become a member.

Thank you for the continued support to ensure the North Texas Home Builders Association maintains a strong presence locally and at the state level.

I hope everyone has a Merry Christmas and a Happy New Year!

Special Thanks to our 2017 NTHBA Partners: Diamond Atmos Energy Platinum Union Square Credit Union Gold First National Bank of Wichita Falls

What’s

INSIDE • Dates To Remember • TAB 2018 Officers & Directors Installed • TAB Meetings Article • General Membership Meeting Article

2018 Dates to Remember

December Birthdays

Jan. 9-11, NAHB IBS, Orlando, FL Jan. 11, General Membership Meeting Feb. 1, General Membership Meeting March 1, General Membership Meeting March 21, TAB Leadership Conference March 22-23, TAB Winter Committee & Board Meetings

Jake Munholland..........................................5 Luz Lerma.......................................................6 Ed Mawsom, Sr............................................15 Donna Adair................................................17 Gina Kulbeth...............................................23 Jerry Phillips..................................................24 O.W. Ayers...................................................26 Francisco Cornejo......................................31 Happy Birthday!

2017 Calendar of Events Budget & By-Laws.................................................Dec. 20 Committee Meeting...........................................10:15AM Board of Directors.................................................Dec. 20 Meeting................................................................11:00AM Christmas Day........................................................Dec. 25 ......................................................................Office Closed New Year’s Day........................................................Jan. 1 ......................................................................Office Closed

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TAB 2018 Officers & Directors Installed AUSTIN, Texas – The Texas Association of Builders swore in its 2018 Directors and Senior Officers before handing out its 2017 “Of the Year” awards at the Excellence in Leadership Celebration on November 17.

The directors and senior officers are responsible for the member programs, representations, and education of the association. The role of the directors will be developing relationships for the betterment of the home building industry, be an active participant and to set the pace for the rest of the membership. The senior officers are the core leaders of TAB. They are charged with upholding the bylaws and policies of the association.

The “Of the Year” awards are given annually to recognize exemplary service and leadership contributions to the home building industry by its members.

Helping Build Our Community Since 1907

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2018 TEXAS ASSOCIATION OF BUILDERS SENIOR OFFICERS President: Justin MacDonald, MacDonald Companies — Kerrville, Texas First Vice President: Robert Wood, Custom Homes by Robert Wood — Lubbock, Texas Vice President/Secretary: Randy Bowling, Tropicana Homes— El Paso, Texas Treasurer: Brett Martin, Tilson Home Corp. — Houston, Texas Immediate Past President: Rick McGuire, McGuire Builders, Inc. — Lubbock, Texas 2017 “OF THE YEAR” AWARD WINNERS J.B. Sandlin Builder of the Year: Victor Drozd, 2 D Homes – Bryan, TX Developer of the Year: Terry Weaver, Sterling Development Company – Midlothian, Texas Associate of the Year: Sue Pinger, Pinger and Company, LLC – Austin, Texas Philanthropist of the Year: Michael Biggerstaff, Biggerstaff Homes, Inc.– San Angelo, Texas Ted Schlossman Lifetime Achievement Award: David Miller, McDougal Construction – Lubbock Texas Co-Local Association Accomplishment of the Year: Hill Country Builders Association and Greater San Antonio Builders Association.

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2018 TAB SENIOR OFFICERS PRESIDENT Justin MacDonald, MacDonald Companies – Kerrville, Texas Justin MacDonald was born into the home building industry.

His grandmother, Jean MacDonald, was inducted into the Texas Housing Hall of Honor in 2010, and his father, Granger, is one of the most well respected pro-housing voices and builders in the nation. MacDonald Companies is family-owned and specializes in developing, building, and managing multifamily neighborhoods across Texas. Justin, President and Chief Operating Officer, is a third generation builder. He’s a NAHB director, committee chairman and state representative and has served as President of the Hill Country Builders Association twice. At the Texas Association of Builders (TAB), he has served on the Executive Committee and Finance Committees since 2009. Justin led the Government Relations Committee through one of TAB’s most successful legislative sessions in 2015. Justin has three degrees.

He earned a Bachelor’s Degree in Journalism and Visual Communications from Angelo State University (2003), followed by a MBA in Finance from the University of Texas-San Antonio (2006) and a Managerial Leadership Certificate from UT’s Red McCombs School of Business (2015).

FIRST VICE PRESIDENT - Robert Wood, Custom Homes

by Robert Wood – Lubbock, Texas In 2002, Robert began fulfilling a life-long dream of being a home builder as he opened the doors to Custom Homes by Robert Wood. Prior to starting his own business, he worked as a supplier to home builders for more than 20 years. This partnership between supplier and builder allowed him to see the importance of being engaged at the local and state levels of the home building associations. Robert served as the 2011 President of the West Texas Home Builders Association and became active in the Texas Association of Builders. For the past six years, he has served on TAB’s Executive Committee and is a State Director. Since 2010, he’s been a member of TAB’s Government Relations Committee, HOMEPAC Trustees and Membership Committee. Robert also served as 2016 Sunbelt Committee Co-Chair. All of Robert’s professional engagements rank second to his commitment to his community. His hands-on

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approach has allowed him to work directly with the Lubbock Make a Wish Foundation, March of Dimes, Highpoint Village and Lubbock Homes for Heroes.

The Albuquerque, N.M., native considers Lubbock his hometown and is proud that he raised his family there and gets to watch his grandchildren grow up there as well.

VICE PRESIDENT/SECRETARY Randy Bowling, Tropicana Homes— El Paso, Texas Randy Bowling is the President of Tropicana Homes in El Paso, Texas. Tropicana Homes and its Continues on page 5

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affiliates have been building homes and apartments in El Paso since 1950, and have built over 10,000 homes since that time. After spending the last 23 years building residential properties, Randy has become an expert on land acquisition and development, residential construction in Texas and New Mexico, residential lending, and assisting his brother with navigating the ever-changing complexities of the Low Income Housing Tax Credit Program. In addition, Randy has served his association as a member of the Board of Directors of the Texas Association of Builders (TAB) since 2004, the Chairman of TAB’s Government Relations Committee, HOMEPAC, Codes & Standards Committee, and is a member of TAB’s Executive Committee. In 2016, Randy was named a Life Director of TAB. Among numerous awards and honors, Tropicana Homes has been recognized by the El Paso Association of Builders four times as the Builder of the Year, and by TAB as Developer of the Year and Builder of the Year three times.

TREASURER Brett Martin, Tilson Home Corp. — Houston, Texas Brett has been involved with the building industry for the last 18 years. The first 11 years were spent providing construction financing to builders and permanent financing to homeowners. The last seven years he has served as Vice President of Real Estate Operations for Tilson Homes. Brett has served on the Audit and Finance Committees for the Texas Association of Builders (TAB) the past five years. He has served as TAB’s Audit Committee Chairman and on TAB’s Executive Committee the past two years.

Born in Pecos and raised in Lubbock and Houston, Brett graduated from Abilene Christian University with a BBA in Accounting and became a CPA. Brett started his accounting career as an auditor with Arthur Young & Co., specializing in finance, real estate and construction.

IMMEDIATE PAST PRESIDENT Rick McGuire, McGuire Builders, Inc. – Lubbock, Texas Rick has been building homes in Lubbock since 1982. A family business, McGuire Builders, Inc., specializes in building custom homes in all price ranges, apartment construction, light commercial

work and property management. Rick previously sat on the state board responsible for maintaining the performance standards that addressed warranty issues required by the Texas Residential Construction Commission. In that capacity Rick stayed abreast of industry standards that affect all facets of home construction and continues to do so through his involvement in the Texas Association of Builders (TAB) and National Association of Home Builders (NAHB).

He served as TAB’s president in 2017, was named TAB’s "Builder of the Year" in 2009 and earned Life Director status in 2008. Rick is entering his 11th year on TAB’s Executive Committee and eighth on the Government Relations Committee. He also serves on the NAHB Board of Directors. Prior to his building career, Rick worked as a Certified Public Accountant and audit manager for a large, international accounting firm. His clients included Fortune 500 manufacturing companies and bank holding companies.

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Let Us Check Your Shorts

Once again while we close out another year we reflect on the past. The NTHBA has had the opportunity through the continued support of you, the members, to enjoy another successful year.

We have been able relish in the fact we have a good working relationship with the city, TAB & NAHB continue to report good things they have accomplished during the legislative sessions to help keep housing affordable and we continue to be in the top 3 Texas HBA’s with the highest

member retention rate.

Thank You for support and involvement that keep our association vibrant and effective.

We wish you and your family a very

Merry Christmas & a Happy New Year!

Glory to God on the highest, and on earth peace, good will toward men.

Luke 2:14

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Member Ashton Gustafson gives a summary to the NTHBA about the economics of the housing industry in Wichita Falls through 2016 Ashton Gustafson Broker and partner of Bishop Realtor Group was the guest speaker for the North Texas Home Builders Association at the November 3rd general membership meeting. With his knowledge and experience in the Wichita Falls housing and commercial development market he graciously volunteered his time to speak to the NTHBA group and explain what is happening in the construction industry from the sales standpoint. Using figures from the year 2000 as a starting point and going through 2016, the best year for home sales was 2006, with 2060 sales.

As the depression began home sales gradually declined from 2006 and bottomed out to 1275 sales in 2011. Since 2011 there has been a slow but steady increase of sales with 2016 seeing 1764 sales.

Although the exact numbers are not available yet, Ashton said 2017 looks like it is in line to have a slight increase over 2016.

There is a lot of criteria that make up the statistics that are important when it comes to home sales.

Days on the market is an important number when decisions are being made about both buying and listing a home. 2016 proved to be a better year for sales with a shorter days on the market average. In 2015 the average days on the market was 82 days, in 2016 it was 74.

Price range is another factor. In 2016, 29% of the homes sold were priced between $50,000 and $99,000. This indicates the majority were existing home sales. Homes that were priced between $100,000 and $119,000 made up 10 % of the sales, $120,000 - $149,999 made up 15%, $150,000 $199,999 made up 16% and $200,000 - $299,000 made up 13% of the sales. Prices that ranged between $300,000 and $500,000 made up less than 3% of the sales and $500,000 and up 0%.

The year a home was built is another gage that determines the sale of a home. 52% of the homes sold at prices between $200,000 and $300,000 were built after the year 2000 and 50% of all homes priced between $300,000 and $500,000 were built after 2000. Ashton mentioned the 2000 may not seem like a newer home to most but in the real estate market it is still considered a newer home.

Another item that could influence home sales, especially in good ole Texas, is a pool. Homes build after the year 2000 that had a pool were on the market for only an average of 31 days.

The type of buyer you have will make a difference in home sales. 18% (137) of the homes sold in

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2016 that were priced under $100,000 were foreclosures while 1.5% priced over $100,000 were foreclosures. These homes are usually bought by investors and remodeled to resale or use as rental properties.

Since the depression began, rental properties sky rocketed from almost 200 rental homes to over 900 with rentals peaking in 2013. We are now starting to see rental properties declining. A lot of buyers could not afford to sale their homes after the depression began as well as it being a time Wichita Falls was seeing a severe drought.

Location is another key factor in home sales.

There were 167 homes near SAFB that sold. Of those homes, only 2 sold for over $200,000. 102 or 61% of those homes sold for less than $100,000. 92% of the homes sold between $150,000 and $200,000 were built after 1990. 175 homes in this area were rented.

Ashton went said there were 27 commercial sales in 2016 that which resulted in $7,947,396 in total volume. The average days on the market were 131 days and the highest sales price recorded was $1,400,000. 62% of these commercial sales were under $200,000.

There was only 3 commercial land sales in 2016.

The average price per acre was $120,110. The average per foot was $2.75 while the average days on the market was 898.

Many people continue to move to the country.

There were 39 farm and ranch sales with the average stretch of acreage bought was 296 acres. The average price per acre was $1733.00 per acre but sold from $700 up to $3853 with an average of 70 days on the market.

Note: these numbers are based on information that is reported in house or through the Wichita Falls Association of Realtors. Builders and individual’s sales information may not be available or recorded in a way it can be used.

In conclusion, Ashton reiterated comments many have been hearing over the past few years from the Wichita Falls Chamber of Commerce, the Economic Development Committee and the City of Wichita Falls, growth will happen when you give them a reason to want to come to your area. The entities above along with the interest of the community are making these things happen.

Overall, Wichita Falls continues to see the housing industry bounce back. Below is a chart for 2017 from January to October.

Thank you Ashton for speaking to the North Texas Home Builders Association and bringing us this wonderful information.

TAB Meetings The Texas Association of Builders (TAB) had their Fall Committee and Board meetings November 16th & 17th in Austin.

Barney & Dianne Brock, Jose Garcia and Teri Gibson attended.

With 2 days full of meetings, the TAB staff along with NAHB staff have their work cut out for them.

Below are some of the major topics that were discussed at the meetings: • Government Relations - With a brief overview of the 85th legislative session, it was reported TAB won 6 of the 7 bills that were on their priority list. Which was pretty impressive.

- Speaker Straus is not running for reelection. It will feel like an eternity until the next session. It won’t be until after the November 2018 election before anyone will know who is eligible to run for the speaker’s race. During this time there will be limited influence on the speaker’s race. This will have a significant impact on where TAB is able to go for the support of legislation.

- The state will be out of money going into the next session. They will start the next session needing 4 – 4.5 billion. They’ve already had a 10% cut in agencies and cutting any further cuts into economic growth.

Appropriations will have a hard time working things out next session.

- Hurricane Harvey is going to be the topic for years to come. Many will use the crises to make changes.

Therefore we will most likely see a lot of bills coming out to try to make policy changes and require more notices pertaining to how to handle flooding, wind damage etc.

- Task Forces will be busy during the interim session.

• Finances TAB continues to be in great financial shape due in part to a very successful 2017 Sun Belt Builders Show which exceeded the 2016 Sunbelt show that was deemed the best one since 2008. The Sunbelt Builder Show along with a building downtown Austin that is owned by TAB is partially responsible for TAB’s continued financial success.

• Sunbelt The 2018 Sunbelt Builder’s show is scheduled for another year at the Dallas - Hilton Anatole August 8-9.

The committee is working on booking the venues through 2022. The Sunbelt will be moving back to the Gaylord Texan Resort Hotel & Convention Center in Grapevine for 2019 and expected to be in the DFW area at least through 2022.

The committee has already procured the key note speaker for the first day and have sold over 50% of the

booths for the showroom. Many sponsors have already stepped forward and the committee is ahead of schedule and forecasting another successful Sunbelt Builder Show for 2018. The committee feels a lot of the increase is due to their successful marketing, not only traditional pieces but new ways they have discovered for digital marketing. You tube videos and geo-fencing are a few along with Facebook.

• Membership As with most organizations and associations, membership will always be on the agenda.

TAB is working persistently to encourage the local HBA’s to increase membership. In 2018 they will be working with a private company, the Oliver Group, they had used 10 years ago, who were successful in helping HBA’s learn how to gain and retain membership. TAB had received a grant from NAHB to help with this program. Over half the HBA’s are participating in the 2018 membership drive.

We are happy to report, thanks to your dedication, the NTHBA continues to be in the top 3 list for the highest member retention rate among the Texas HBA’s. Are goal this year is not only to continue being at the top for retention but to be successful in growing our membership.

NAHB Dues will increase in 2018 by $16.00 to for a primary member and $10.00 for an affiliate member. TAB will not increase for another 2 years.

There was an open discussion from several HBA’s who shared some of the fund raising events they have been doing that have been successful. A few include bowling tournaments, putt-putt golf tournaments and a go cart events, to name a few.

• Texas Executive Officers Council With hurricane Harvey effecting several area HBA’s and members in these areas, it was a hot topic in several meetings. The few things that were discussed among the Executive Officers regarding this were: The possibility of legislation to pass regulations and require more notices is one of the main things TAB will be watching for. They will continually update the EO’s when information is available.

Fielding calls in the areas where they are going to see an influx of contractors with some being scammers or unqualified and do shoddy work.

Knowing where to direct calls from those needing help or contractors wanting to work.

Labor shortage, price of supplies and the length of time it will take for areas to recover from Harvey.

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Another item mentioned in the meeting was licensing of builders. It was mentioned the topic comes up periodically over the years and the consensus is usually the same. It seems it is split 50/50 of those who want it and those who do no. While all are interested in finding a way to get the bad actors out town, there hasn’t been a way that all can agree upon. Some legislation has been passed since TRCC closed down but that isn’t always enough. It was discussed in the GRA meeting and again for now, it will be laid to rest until it is brought up again.

TAB also mentioned they have been working on developing a builder to contractor web site but all the bells and whistles have not been put into place where everyone can be satisfied with the way it will work. TAB will be updating the EO’s accordingly.

After all business was discussed the TEOC swore in the 2018 newly elected Officers, President Rose Selma, Vice President Kim Lindsey of Victoria and Kristen Oliver of San Angelo, while showing their appreciation for the Past President Phil Crone TEOC of the Dallas HBA.

model. This topic erupted in a lengthy discussion. After several members’ comments and concerns the topic was put to rest. NAHB’s potentially new membership model is still in the planning and beta testing stages so for at least another year NAHB will continue business as usual when it comes to reporting and renewing membership.

• The Federal Tax Reform has been a time consumer for the NAHB. Granger MacDonald reported after several phone calls and agreements with the House, NAHB did not receive the proposed tax reform that was favorable to NAHB. Therefore NAHB continues unwavering on the major issues they want to see in the tax reform which is the Mortgage Interest Deduction and Housing Tax Credit along with others. NAHB will continue to converse with the Senate with the expectations of them being able to pass a tax reform that will include these items and NAHB can be in agreement of as well.

As new information is available we will do our best to keep you informed. You may also receive updates via email from National.

Remember the NAHB and TAB meetings and events are open for all members to participate. If you would like to get more involved on the national or state level, please visit their web sites and sign up to attend their meetings or watch your emails and the newsletter for information.

ACME BRICK COMPANY • Area II Caucus We are pleased to announce our very own Barney Brock is now the TAB Area II Vice President. He took over the reins with encouragement and blessings from our good friend Gene Lantrip from Abilene. Gene will continue to serve TAB as the chairman for the HOMEPAC Committee. Along with the appointment of Barney for Area II VP, Barney, Michael, Justin and Jose were nominated to sit on various committees some with voting rights and others not. A list of these state committees, our members will be serving on, will be out the beginning of 2018.

During the TAB meetings there was a Town Hall Meeting with NAHB Chairman of the Board Granger MacDonald, NAHB State Representative Tim Jackson and NAHB National Area Chairman Justin MacDonald.

• They panel began with talking about the interest NAHB has in restructuring their leadership model. Like so many organizations, there are only a portion willing to make commitments to serve and then out of that portion there is only a portion that are able to fulfill their commitment. By changing the leadership structure the goal for NAHB is to streamline the governance. Make participation easier, reduce the liability associated with leading the association and create a more nimble governance structure that can address and increasingly challenging business.

• Next on their agenda was a new membership

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6701 Seymour Hwy. Wichita Falls, TX 76310

NTHBA Member since 1972