July 2014

Volume 7, No. 7 • July 2014

4410 Fairway Boulevard • Wichita Falls, TX 76308 • P: 940.692.2211 • F: 940.692.2214 www.nthba.com

General Membership Meeting July 10, 2014 Kemp Center for the Arts 1300 Lamar 11:30AM

Dates to Remember • July 23-24, 2014 Sunbelt Builders Show – San Antonio Texas • July 22-25, 2014 TAB Summer Board Meetings – San Antonio Texas • July 28, 2014 Deadline for Housing Hall of Honor Nominations • August 7, 2014 GM Meeting - Henry Florsheim, President/CEO Wichita Falls Chamber of Commber • Sept. 4, 2014 GM Meeting - David Graf, Wichita County Extension Agent • Sept. 25, 2014 Annual Golf Tournament

Scholarship Chairman Doug McColluch: Scholarship Award Presentation

• December 11, 2014 Annual Christmas Party 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.

Renewals ATMD Insurance........................................Pam Esch Chris Dockman Company..................Jerry Fillmon Christmas In Action...........................Cassie Ahearn S & H Granite.........................................Kyle Streich

Thanks for Renewing!

July Birthdays Jimmy Wyatt..................................................20

Happy Birthday!

From the President Dear Members, This has been a busy year for the North Texas Home Builders Association. John Harmon and I attended the NAHB International Builder Show in January, John Harmon, Jose Garcia and I have attended the state meetings in February, with each serving on at least one committee and 2 sub-committees, our government affairs committee has had meetings with both State Representative James Frank and Senator Craig Estes as well as a meeting with the Mayor, City Manager Darron Leiker, Assistant City Manager Kevin Hugman, city attorney Miles Risley, President & CEO of the Chamber of Commerce Henry Florsheim and city council members Brian Hooker and Ben Hoover. We have also had a builders meeting at the NTHBA office and a builder and sub-contractor meeting with the city building inspectors all in the first quarter of 2014. The second quarter began and we’ve had a membership drive which gained us 6 new members and completed another successful Parade of Homes.

We still have a lot of events on the calendar. We’ll be presenting scholarships on July 10th and some will be attending the Sunbelt Builder Show and state meetings July 21st – 25th. If you’ve never been to the Sunbelt Builder Show I encourage you to attend. This event will give you the opportunity to see the latest trends in the home building industry from vendors all over the state of Texas.

While you explore new products you can also attend the state committee meetings and see how you can get involved on a greater scale and let your voice be heard.

If you’re not getting anything out of your membership you might want to consider what you are willing to put in it. Everyone is welcome to get involved. Which brings me to another item on the list for July; the nominations committee will be meeting on July 15th to discuss who they will nominate to recommend to the Board of Directors to fill the positions of Vice President (which is held by a builder member), Associate Vice President (held by an associate member), Treasurer (either builder member or associate member), Secretary (either builder member or associate member), 2 builder directors and 1 associate director. In order to fill these positions it would be helpful if the nominations committee had a list of willing participants to choose from. If you are interested in serving in any capacity, on the Board of Directors or on a committee, please contact Teri Gibson at 692-2211 to be put on a list for the nominations committee. You can also call to request information about the duties required for those serving in these positions.

We are still not to the end of the list of events for 2014. We will be holding the Annual Charity Golf Tournament tentatively scheduled for September 25th, and working on putting together other meetings that will be educational. We will install new officers and directors in October along with our Housing Hall of Honor Presentation; anticipating we will have nominations sent in and accepted; and the annual Christmas Party is scheduled for December 11th. Please make sure you read your emails, the reporter and visit the NTHBA web site to stay informed with what is happening in your association.

I want to thank you all for continuing to support the North Texas Home Builders Association.

Best regards, Barney Brock NTHBA President

2

Calendar of Events Parade of Homes & ..................................................July 2, 2014 Special Events Committee Meeting.............................10:00AM Happy Independence Day ..............................................................

Office Closed................................................................July 4, 2014 Membership Meetings & ...........................................July 8, 2014 Education Committee Meeting.....................................10:00AM Publications & Communications...............................July 8, 2014 Committee Meeting........................................................11:00AM General Membership................................................July 10, 2014 Meeting...............................................................................11:30AM Budget & By-Laws......................................................July 15, 2014 Committee Meeting..........................................................9:15AM Nominations...............................................................July 15, 2014 Committee Meeting........................................................10:30AM Board of Directors....................................................July 16, 2014 Meeting...............................................................................11:00AM Deadline for Housing Hall.......................................July 28, 2014 of Honor Nominations......................................................5:00PM

Meet Your Members

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

State Director - Jose Garcia Alternate State Director - Steven Hinson Life Director - Chuck Dennis Executive Vice President - Teri Gibson

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We are a full service design store that offers free in home consultations. This means that we will come to your home, learn about you and your interests, to and do help Business you coordinate the right Always Remember with Association Members! flooring, window treatments, custom drapery, wallpaper, and BRYAN WAGGONER more that will help make your home beautiful! We will measure for all your custom orders. We would love the opportunity to "help you with the details that make the difference"!

3907 Kell BoulevarG ‡ WLFKLWD )DOOV ‡ Texas 76308 Gina Kulbeth is the president and CEO of Decorator Outlet, (940) 691-3641 Inc. She offers over 27 years of decorating expertise. Gina has Continued on pg 12 )D[ ‡

collaborated with home builders, commercial contractors, as E-Mail bryanl@waggonercarpetone.com well as individual homeowners who are faced with decorating challenges. She consistently offers solutions that exceed her customers' expectations! Gina truly enjoys helping people and Commercial Services making their homes beautiful. Gina is certified as a Window John Thompson Fashions Professional Mike Sharp Michelle Baker is the Lead Decorator for Decorator Outlet Mark Miller Continues on page 4

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Inc. She has been on the staff for the last 16 years and has worked in the design business for the last 21 years.

Michelle specializes in all aspects of residential and commercial decorating. She is very resourceful with her ideas and the quality of her work is unmatched. She has a natural born gift that enables her to help you with all of your design idea's. Michelle is also certified under the Window Fashions Professional Program With all of our team together we can help our customers with their home decorating needs. We can help you with the details that make the difference!! Call 691-8367or stop by Decorator Outlet Inc. today at 3509 Southwest Parkway and let us get started decorating your home.

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Construction Water Available at Cypress Water Treatment Plant

BY BOBBY TEAGUE, BUILDING & CODE ADMINISTRATOR/ASST. DIRECTOR As soon as the Water Reuse Project is approved by TCEQ, effluent water will no longer be available at the River Road Treatment Plant. The projected date will be July 1, 2014 or soon thereafter. Only contractors wishing to obtain water for their construction or demolition projects will be allowed to obtain water at the Cypress Water Treatment Plant. Only those persons with a valid permit number and letter issued by the contractor authorizing each sub-contractor or employee to purchase water for the permitted project will be allowed to load water. The letter will be valid for 30 days only. All water purchased will be billed to the contractor of record for the permit number being used. A list of permit numbers for active projects will be provided to the plant personnel. Water will be available on a first come first served basis.

The Cypress Water Treatment Plant is located at 4801 Big Ed Neal Drive. Please contact Mark Southard at 940-691-1153 or Building Inspections at 940-761-7459 for additional information.

Please email Debra Nix at debra.nix@wichitafallstx.gov or Margaret Bussey Margaret.bussey@wichitafallstx.gov to request copies of the required letter to be emailed.

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PERMITS PULLED The number of Residential New Home permits pulled through June 24, 2014 is 45. Out of the 45 permits pulled 36 were pulled by 10 of the NTHBA Builder members. 4 were pulled by owner, 2 were pulled by Habitat and 3 were pulled by non member builders. 10 of these permits were pulled in June with 8 from 2 of the NTHBA builder members. 1 from Habitat and one from a non member builder.

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We wish to express our heartfelt sympathies to the Rhone Family for the loss of their loved one Michael Rhone. Continue to pray for our members’ health, families, and businesses as well as our armed forces, our country, our country’s leaders, and rain.

5

Proposed New Rules Shed Light on Future Water Projects

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The Texas Water Development Boardâ&#x20AC;&#x2122;s release of draft rules Tuesday afternoon offered Texans a clearer sense of how the board prioritize and fund competing Always Remember towill do Business with Association Members! water supply projects.

BRYAN WAGGONER Though some potential issues remain unaddressed, the proposal provides 3907 Kell BoulevarE t WJDIJUB 'BMMT t Texas 76308 guidelines for the point system by which the board will rank projects applying for an initial pool of $2 billion â&#x20AC;&#x201D; funding approved by Texas voters in November.

The draft rules include a boost to environmental groups, defining â&#x20AC;&#x153;conservationâ&#x20AC;? in accordance with a previous state guide. Under the rules, a projectâ&#x20AC;&#x2122;s effect on water conservation â&#x20AC;&#x201D; including elements like water loss â&#x20AC;&#x201D; potentially offers many more points than other criteria, including shovel-readiness and the applicantâ&#x20AC;&#x2122;s ability to repay a loan.

Legislative mandates to set aside 10 percent of funds for rural projects and 20 percent for conservation and reuse projects are considered â&#x20AC;&#x153;a floor and not a ceiling,â&#x20AC;? the rules state, as board NMLS: 463255 members had previously signaled. The rules set forth a commitment to www.snbt.net an â&#x20AC;&#x153;aggressive marketing and outreach programâ&#x20AC;? to make sure that eligible projects in these two categories know to apply for funding.

Ken Kramer, former director of the Sierra Clubâ&#x20AC;&#x2122;s Texas chapter, said in a statement that the draft rulesâ&#x20AC;&#x2122; considerations of conservation â&#x20AC;&#x153;appear to have hit the mark.â&#x20AC;?

The proposed point system also gives considerable weight to projectsâ&#x20AC;&#x2122; rankings from regional groups, which already submitted their lists of prioritization to the state agency.

The draft rules also note that the board will report the extent to which funded projects involve historically underutilized businesses.

The board announced that it will hold public hearings on the proposed rules in cities around the state on July 24, Aug. 13 and Aug. 21.

It will also accept other public comments until Sept. 1. &

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Original story: The future of Texas' water supply will start to take shape on Tuesday afternoon when the Texas Water Development Board releases draft rules for funding major water projects over the next several decades.

Amid the continuing drought, voters approved Proposition 6 in November, authorizing the Legislature to provide the State Water Implementation Fund for Texas with $2 billion from the state's Rainy Day Fund.

The infusion of funds is intended to be self-sustaining, with the board only allowed to make loans instead of grants. But competition for the money will be fierce: The 2012 State Water Plan outlined $53 billion worth of potential water projects, such as pipelines and reservoirs.

The online release of the rules will offer clues for which projects will become top priorities. Though a law passed last year, House Bill 4, provides some parameters for the allocation of funds, the board has significant leeway to set its own standards. As required by law, 16 regional groups have submitted their own rankings of projects, but it is unclear how they will translate to the statewide prioritization process.

Though there is a board meeting on Wednesday, the draft rules won't be discussed by the board until the June 26 meeting at 8:15 a.m.

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Martin Litteken, Jr., P.E.

2406 Kell Boulevard Wichita Falls, Texas 76309-5326 Phone: (940) 322-6450 Fax: (940) 723-6006

Continued from page 6

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Experts and industry leaders are eagerly anticipating the announcement. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re anxious to see the details,â&#x20AC;? said Bill West, general manager for the Guadalupe-Blanco River Authority, which has three projects for which it hopes to receive funding. â&#x20AC;&#x153;The key to that competition will be the way the state crafts those rules.â&#x20AC;?

Here are some of the major questions that could be answered this week: How will the board balance different prioritization factors?

HB 4 tasks the board with considering several factors in its prioritization of different projects. These include aiding large and diverse populations, balancing different regions and accounting for a large portion of the usersâ&#x20AC;&#x2122; water needs. But the directives leave plenty of room for interpretation, and the list contains some inherent tensions. â&#x20AC;&#x153;The highlight-reel, superstar, big-summer-release part of this is the prioritization factors,â&#x20AC;? said Jeremy Brown, an energy research fellow at the University of Texas School of Law. How, and how much, will the regional priority lists be taken into account?

The board is required by the law to consider how each project was ranked by its regional group. But it will likely have to reconcile differences among the 16 prioritization processes. And given the bill's vagueness, the degree to which the board might forgo regional recommendations in favor of its own rules is unclear.

What role will funding requirements dictated by law play in the process, and how will conservation be defined?

The Legislature urged the board to ensure 10 percent of funds for projects in rural areas and 20 percent for conservation and reuse projects. The delineation of those categories, though, remains an open question. Environmental groups are particularly focused on how the board will define conservation, which received attention at public meetings earlier this year.

Will the board incorporate considerations of environmental or economic impacts?

Left out of the law's prioritization factors list was any mention of a projectâ&#x20AC;&#x2122;s impact on the environment and economy. So it is unclear whether the board will consider them. Meanwhile, feasibility and cost â&#x20AC;&#x201D; two factors the law does identify â&#x20AC;&#x201D; have yet to be fully defined.

What role will the advisory committee play?

This question will remain unanswered even after the rules are released. A new committee, which comprises a representative from the comptrollerâ&#x20AC;&#x2122;s office, three members of the state Senate and three members of the state House, is tasked with reviewing the water fund and assessing the board's rules. The dimensions of the committeeâ&#x20AC;&#x2122;s power are unclear: State agencies have domain over executive rulemaking, but could legislators assume a dual role by directing some of the process? â&#x20AC;&#x153;There are some basic constitutional lines there, but thatâ&#x20AC;&#x2122;s the official story,â&#x20AC;? said Mary Kelly, a principal at Parula, an Austin environmental analysis firm. â&#x20AC;&#x153;What goes on behind the scenes is always something different.â&#x20AC;?

Regardless of what plays out over the next few months, the list of projects is set to be finalized by Sept. 1, with loans first doled out in 2015.

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7

Legislators look to desalination to solve water woes

Posted: June 15, 2014

By ENRIQUE RANGEL enrique.rangel@morris.com

AUSTIN — Desalination will soon get an in-depth look in the Texas Legislature.

Beginning today, a joint committee will begin a series of public hearings on the benefits and costs of the process of removing salt from ocean water or groundwater so that it can be used for irrigation, industrial use and even for human consumption.

For Rep. Lyle Larson, a panel member, today’s hearing in Austin and subsequent meetings throughout the state in the summer and fall — including a possible stop in West Texas — will play a critical role in drafting needed legislation when the Legislature is back in session next year.

“This is the new horizon in Texas,” Larson, R-San Antonio, said in reference to the estimated 3 billion acre-feet of salt water in Texas. “There is so much growth opportunity.”

An acre-foot, the unit of volume commonly used to measure the amount of water in reservoirs, aquifers, canals and rivers, is the equivalent of one acre of land covered by water 1 foot deep.

Put another way, an acre-foot of water is the equivalent of 325,051 gallons, Juan Gomez, a water expert at the University of Texas at San Antonio, wrote in a March 30 article in the San Antonio Express-News.

“Texas has access to about 367 miles of coastline on the Gulf of Mexico,” Gomez wrote. “Yet, we continue to rely on surface water and fresh groundwater resources.”

For those and other reasons, the state needs to invest in desalination plants, like Florida has, to meet its future water needs, said Larson, a leading water expert in the Legislature.

“We have the technology and the cost is falling,” he said.

“And in places like Midland and Odessa they have an abundance of brackish water.”

Desalination is one of several water issues state lawmakers will take an in-depth look at before the legislative session begins.

Earlier this year, House Speaker Joe Straus and Lt. Gov. David Dewhurst, the presiding officer of the Senate, issued a series of interim charges — issues the lawmakers explore the year before they are back in session — aimed at addressing the rapidly growing water needs of the state.

The Texas population is projected to grow from 26 million this year to 40 million by 2060. To start getting for such projected growth, in last year’s session state lawmakers overwhelming approved a bill that, with subsequent voter approval in the fall, allows the Legislature to withdraw $2 billion from the rainy day fund to begin funding a $53 billion, 50-year water plan.

“Water remains a top priority for the Texas House because it remains critical to the Texas economy and our quality of

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2014 Parade of Homes

Continued from page 8

The NTHBA takes great pleasure in reporting we had a great turn out for the 2014 Parade of Homes Kick-off lunch. As always the food and fellowship couldnâ&#x20AC;&#x2122;t have been any better. Thank you Landmark Title for sponsoring the Lunch again this year. It was a pleasure to have Mayor Glenn Barham, City Manager Darron Leiker, and City Councilor Annetta Pope-Dodson join us this year to do the ribbon cutting. The participation in the silent auction was fantastic and we raised $1245.00 for HOMEPAC. We are blessed with a membership who is passionate about the home building industry. Keep up the good work in supporting the NTHBA and Texas Association of Builders HOMEPAC. Thank you everyone who donated and bid on the silent auction items. Congratulation goes out to Caroline Groves with Archer Title of Texas our big winner of the flat screen TV drawing. As for the Parade itself it too was a success again this year with a little over 1900 attendees and perfect weather. Thank you builders for entering your homes that allow us to continue an over 60 year tradition. We look forward to preparing for the 63rd Annual Parade of Homes in 2015.

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life,â&#x20AC;? Straus said after appointing seven House members to the desalination panel and the members of two other water committees. â&#x20AC;&#x153;These members will play an important role in building consensus around smart, responsible water solutions,â&#x20AC;? Straus, R-San Antonio, said in a new statement.

Though no one from the Texas Panhandle/South Plains delegation serves on the 12-member desalination panel, some said they are confident the committeeâ&#x20AC;&#x2122;s work will make major recommendations the Legislature can address next year. â&#x20AC;&#x153;Desalination is absolutely the key to the future of the water in the state, both in our region and down in the gulf,â&#x20AC;? said Rep. Charles Perry, R-Lubbock. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got water around us and under us,â&#x20AC;? Perry said. â&#x20AC;&#x153;Desalination of brackish water is the key for West Texas because we are sitting on top of Permian Basin ocean water and they can desalinate for as cheap as what weâ&#x20AC;&#x2122;re paying for water in Lubbock, Texas, right now.â&#x20AC;?

Rep. John Frullo, also a Lubbock Republican, said he is glad the Legislature is giving desalination and other water issues the attention they deserve. â&#x20AC;&#x153;Water is going to be critical again in the next session,â&#x20AC;?

Frullo said. â&#x20AC;&#x153;Water is going to be one of our big issues next time, so I think weâ&#x20AC;&#x2122;re going to work on it, weâ&#x20AC;&#x2122;re putting more money into it and doing a lot of research.â&#x20AC;?

And though Frullo said he thinks desalination is expensive, â&#x20AC;&#x153;as we get more efficient, it lowers the cost and we get better ideas. â&#x20AC;&#x153;That is part of the process right now,â&#x20AC;? he said. â&#x20AC;&#x153;Down in the gulf, theyâ&#x20AC;&#x2122;ve got the water they can pull from, and in our part of the world is the brackish water from Santa Rosa (Formation) and places like that.â&#x20AC;?

For Perry, the public hearings on desalination should also help educate the public about the critical role the process can play in helping the state meet its future water needs. â&#x20AC;&#x153;That is the key,â&#x20AC;? Perry said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got to start the (public) education that desalination is not that expensive, that it is a key component of the water supply in Texas.â&#x20AC;?

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9

Sorry Guys, Size Does Matter...

... And by "guys" I'm referring to both genders!

The National Association of Home Builders (NAHB) is many things to many people. For members, the association is a place to network, become better industry educated and to take part in home building/renovating enhancement or protection, better known as advocacy.

For homeowners, current and future, NAHB is the mark of perceived excellence and a place to find a builder with their great investment.

For environmentalists with extreme views, NAHB is the perfect villain who delights on building on open space or scaring off endangered species. The problem with that is most, if not all; politically engaged environmentalists go home each night to a home built by a builder. Ironic, isn’t it? In fact, I have yet to meet one who lives in a grass hut in the woods.

I look at NAHB in many ways, in particular, I see individual local home builder associations (HBA) working towards being united as a voice for home building. My current role within NAHB is chairman of NAHB’s Membership Committee and I work with a dedicated group of committee members, with guidance and input from NAHB staff members, to develop tools for these individual locals to help with recruitment and retention. The HBA leaders are there to help with engaging the members. This committee, over the years, has done great work and the one thing I would like to add in discussing the development of tools is the ultimate reason for membership growth; the power of perception.

The view of NAHB by politicians or those seeking office for the first time, view our association’s strength by the possible votes it can bring to a campaign. The greater the number of members possibly delivered, the better and more productive the conversation about building industry initiatives.

Membership growth does contribute to the local HBA’s operating expenses for dues revenue and the greater the membership numbers the greater the opportunity for non-dues revenue. Membership has the voice of an industry, the ear of the politician and the financial resources to allow the local HBAs, and by extension the state HBAs and NAHB, to make sure that its members are receiving the best possible experience.

Recruiting members for your local helps the local help you, the member, because size really does matter. submitted by Michael Kurpiel, CGA, CGP, chairman of NAHB’s Membership Committee

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The Lifeblood of OUR Federation

A continuation of the article, "Sorry Guys, Size Does Matter..."

The National Association of Home Builders (NAHB), and every single local association within, is the very reason why we have careers. Don't let anyone sway you into thinking the 2008 economic meltdown had to do with builders and their associate vendors. It had everything to do with Wall Street greed that almost destroyed the very fabric of one of the three necessities of life; food, clothing and SHELTER. Yes, I wrote almost because the industry is slowly rebounding and we as members of NAHB, those who survived, are back. Not as strong as ever but certainly month by month gaining strength and momentum. Two staples of NAHB can never be denied as being absolute in weapons, when fighting our "enemies of the industry", or tools, when helping our members; BUILD-PAC and Membership. The two go hand in hand in our survival. They are both the heart and soul of the Federation, the lifeblood of our present and future.

I know, I may be a bit over dramatic for some, those who are not really invested in the housing industry. Those that are understand that it takes more than one voice, more than one investment, will find my article today to resonate within their minds. We don't wake up every morning and find our industry providing for us. We must wake up every morning providing for our industry or it becomes like an unattended garden, withered and full of weeds and insects.

Without a healthy membership, we lose political strength in those areas where membership is down. The stronger locals, those with high membership totals, take notice; in order to have legislative victories in your state capitol, you need all legislators in your state to have an understanding of your issues. If one or more locals are struggling for members, those districts will seem unimportant to those state legislators in those counties. Why? Lack of viable votes. Politicians are not as complicated as some would think. "How many votes can you deliver?" is always on their minds, or at least in tandem with any other thoughts.

Election and reelection.

BUILD-PAC’s (Builders United In Legislative Decisions Political Action Committee) voice in Washington is only as strong as our members who continue to support its efforts. This support comes from individual members like YOU. In an attempt to keep this short and sweet, I won’t expand on BUILD-PAC’s mission or goals but rest assured the more we BUILD up BUILD-PAC’s membership base, the more doors we will open on Capitol Hill.

We should all take it upon ourselves to be educated about BUILD-PAC, our PAC and voice at the national level. Help reach out to nonmember builders and vendors in your area of the country and be sure they know about the value of NAHB Membership!

Check out our web site www.Association Maximization.com and find articles that have some good talking points that should help address any questions that might arise.

TODAY is the day. We are all busy running our businesses and careers and it’s easy to say “I’ll get to that tomorrow.” Whether you are a builder or associate, I am operating under the assumption that you are as passionate about your career and this Continues on page 12

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DON WRIGHT - President Cell: (940) 636-5641 2606 GRANT STREET WICHITA FALLS, TX 76309 Tel: (940) 696-2758 fax: (940) 691-3757

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industry as I am. In my opinion, two things make up a successful career…drive and a path relatively free of roadblocks.

BUILD-PAC and NAHB membership are the first steps to clearing YOUR path.

I ask you a very simple question about your future in OUR industry; are you in or are you out?

If "yes" will you start today to help us help you by rebuilding membership and bringing others into BUILD-PAC? submitted by Michael Kurpiel, CGA, CGP, chairman of NAHB’s Membership Committee

Healthy Housing Industry Spurs Job Growth May 7, 2014 - The health of housing is key for the overall state of the U.S. economy and housing stands poised to serve as an engine of job growth with the right policies in place, the National Association of Home Builders (NAHB) told Congress today.

Testifying before the Senate Banking Committee’s Subcommittee on Economic Policy during a hearing examining the drivers of job creation, NAHB economist Robert Dietz said that home building and remodeling have generated 274,000 jobs over the past 2 ½ years.

“This expansion has direct economic benefits,” said Dietz.

“Housing provides the momentum behind an economic recovery because home building and associated businesses employ such a wide range of workers.”

Employment from new home construction and remodeling has a wide ripple effect. About half the jobs created by building new homes are in construction. They include framers, electricians, plumbers and carpenters. Other jobs are spread over other sectors of the economy, including manufacturing, retail, wholesale and business services.

NAHB analysis of the broad impact of new construction shows that building 1,000 average single-family homes generates: • 2,970 full-time jobs • $162 million in wages • $118 million in business income

• $111 million in taxes and revenue for state, local and federal governments Similarly, construction of 1,000 rental apartments, including units developed under the Low Income Housing Tax Credit, generates 1,130 jobs while $100 million in remodeling expenditures creates 890 jobs.

Currently, housing comprises about 15.5 percent of GDP but Dietz said the industry still has room to grow.

“Typically, housing represents 17 to 18 percent of the GDP,” he said. “With a growing population and an aging housing stock, NAHB forecasts that single-family construction will increase 22 percent in 2014 to 760,000 units and multifamily production will rise 6 percent to 326,000 units.”

Noting that 2014 should be the first year since 2007 in which total housing starts exceed 1 million homes, Dietz said this expansion will produce jobs. “In April alone, home builders and remodelers added 13,100 jobs,” he said.

NAHB estimates that total housing construction over the next few years should return to just under 1.7 million combined single-family and multifamily starts on an annual basis.

Homeownership also represents the most important investment and source of savings for most middle class households.

The latest economic data show that the primary residence represents 62 percent of the median home owner’s total assets and 42 percent of their wealth. Moreover, almost two-thirds of all U.S. households own a home, while just 50 percent possess a retirement account and only 16 percent own stocks and bonds.

Though homeownership remains a cherished American ideal, access to safe and decent affordable rental housing is needed for those households for whom renting is the best choice. The Low Income Housing Tax Credit, the nation’s only affordable housing production program, serves a critical role in this regard. Since its inception, the tax credit has produced and financed more than 2 million affordable rental apartments.

Industry Faces Several Challenges While home construction is poised to continue to expand and add jobs, builders continue to face persistent headwinds. These include access to building lots, rising building material prices, access to builder loans and worker shortages in some markets.

Additional challenges are the lack of policy certainty in areas connected to housing. To help the industry play its traditional role as a job creator, Dietz called on Congress to ensure that undue regulatory burdens do not hinder economic and job growth.

“Regulations imposed by the government at all levels account for 25 percent of the final price of a new single-family home built for sale,” he said.

On the tax front, Dietz urged lawmakers to protect the mortgage interest deduction and Low Income Housing Tax Credit, which are critical to ensuring the growth of the middle class and access to affordable housing, and to enact a tax extenders bill that would retroactively extend expired tax rules such as the minimum 9 percent credit rate for the Low Income Housing Tax Credit and residential energy efficient tax credits for new construction and for retrofitting existing homes.

Passing comprehensive housing finance reform that includes a federal backstop to ensure the availability of the 30-year mortgage, increase private capital in the marketplace and protect the American taxpayer would be a net positive for job creation, he added.