October 2015 reporter

Volume 8, No. 10 • October 2015

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

General Membership Meeting October 1, 2015 Kemp at the Forum 2120 Speedway 11:30 A.M Speaker TAB President Steve Sorrells Program Installation of 2015-2016 Officers & Directors

Dates to Remember • October 16, 2015 Young Professionals Texas Hold Em Poker Tournament. See page 10 for details.

• November 10-12, 2015 TAB Winter Committee & Board Meetings, Austin, TX • December 3, 2015 Christmas Party, Backdoor Theater Please remember to donate to HOMEPAC and BUILDPAC.

From the President Well, I can’t believe how time flies. My year as President of the North Texas Home Builders Association is almost over. Some good things that happened throughout the year were the historic drought came to an end with the lake filling record rains in May, a successful parade of homes event in June, a HOMEPAC campaign that exceeded our goal and a golf tournament that was filled to capacity.

I would have liked to have seen a surge in home building starts, but the North Texas area is slow to recover from the recession. Hopefully the lakes being full, the Career Technical Education Center being constructed, the Airport terminal being completed and the chamber of commerce working to get new jobs in the area such as Amfuel and the Eagle Expansion will result in a resurgent of in building and optimism in Wichita Falls.

I wanted to thank everyone that has help make this year a success. The Board of Directors and committee members did a great job moving the North Texas Home Builders Association forward. Teri Gibson, our EO, does a great job with the day to day operations and I wanted to give her a special “Thank You” for all you do.

A couple of things noteworthy to mention are the installation of the 2015-2016 Officers & Directors on October 1st with the TAB President Steve Sorrells officiating. The other is the golf tournament on September 28, 2015. The tournament was maxed out with 31 teams, 40 hole sponsors and many members donating goody bag items and door prizes. A special thanks to the Parade of Homes committee especially Eddie Holcomb, Jeff Boyd and Clint Leggett for a great tournament.

The National Association of Builders, the Texas Association of Builders and the North Texas Home Builders Association work each day to help the home building industry. New federal and state laws and regulations continue to affect the profession with unwarranted paperwork and cost. It takes everyone pulling together, and I challenge all the North Texas Home Builder Association members to participate with your time and money in the coming years, to keep our industry strong and growing.

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New Members

Calendar of Events

Guild Mortgage...................................Clay Brandon H Cubed Homes, LLC....................Justin Holcomb

General Membership.........................................October 1, 2015 Meeting...............................................................................11:30AM

Welcome!

Publications & Communications...................October 13, 2015 Committee Meeting........................................................11:00AM Membership, Meetings, & Education............October 13, 2015 Committee Meeting...........................................................4:00PM Parade of Homes &.........................................October 14, 2015 Special Events Committee Meeting.............................10:00AM

Renewals ABC Supply........................................Victoria Longo American National Bank.................Brad Davidson American National Bank.............Caroline Groves Jacksboro National Bank.....................Jerry Phillips Waggoner Carpet.........................Bryan Waggoner

Government Affairs.........................................October 14, 2015 Committee Meeting........................................................11:00AM Budget & By-Laws............................................October 20, 2015 Committee Meeting...........................................................9:00AM Board of Directors..........................................October 21, 2015 Meeting...............................................................................11:00AM

Thanks for renewing!

2015 /2016 Officers & Directors

October Birthdays Michael Grassi...........................................................8 Dorothy Rhone.......................................................12 Bryan Waggoner......................................................18 Danny Wood............................................................21 Tom Nichols............................................................25

Happy Birthday!

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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City Manager Darron Leiker discusses city budget process with home builders By: Lee Grace

"It's Not a Phrase or a Slogan; It's the Absolute Truth"

By Michael Kurpiel, CGA, CGP

The past two weeks I have published articles from our National Associate Chairman and our Associate Members Committee Chairman, both National Association of Home Builders' leadership roles for associate members. There is a third associate leadership role and one that I'm proud to represent; the BUILD-PAC Associate Vice Chair. It's the third leg in the three legged stool for associate needs and initiatives at the national level of membership as it pertains to advocacy and the strength of our National Association of Home Builders voice in Washington, DC. BUILD-PAC stands for Builders United in Legislative Decisions Political Action Committee and it is our advocacy fund-raising arm that we, as builders and associates who sell to builders, need to develop relationships with our federal legislators. Why associates?

"If It Affects Builders It Will Affect Associates" This message is for all members but specifically associates since associates only count for 0.5% of BUILD-PAC investments. ZERO POINT FIVE, half of one percent. Yet, for most associates, 75% to 100% of your

Wichita Falls City Manager Darron Leiker discussed the city’s budget process with members of the North Texas Home Builders Association at the group’s September Membership Luncheon held Thursday, Sept. 3, at the Kemp Center for the Arts.

Wichita Falls Mayor Glenn Barham and City The lunch was catered by Texas Manager Darron Leiker are shown with John Harmon, president of the North Texas Home Best.

Builders Association, following Leiker’s speech Leiker, who has served as city to the association’s membership. manager for the past 10 years, said this year’s budget is approximately $170 million. He said the budget is one of the city manager’s chief responsibilities.

“The city is required to have a balanced budget with adequate reserves,” he noted. By reserves he explained they budget anywhere 15 to 25 percent in reserve. This is important because of unexpected emergencies and potential natural disasters. The city budget is constructed each year using generally accepted accounting principles (GAAP) and they use a modified accruel basis of accounting.

The city’s budget includes 16 separate and independent funds, “most with restricted spending laws,” For example the utility fund includes all income for the utilities department and all expenses. In this way, money for a specific department is allocated for that department and cannot be used for another department.

The city also receives state and federal grants that help fund projects like the city’s trail system. Leiker was very clear that grant money can only be spent on the specific project that it was given to fund. That’s why when people complain about the city using funds to build the trail system, he notes that if they didn’t build the system, the money would have to be returned to the grantor and could not be used for any other purpose.

The city’s bus system is another example of a department that is not subsidized from general funds. Passengers, federal grants Continues on page 6

Continues on page 5 Martin Litteken, Jr., P.E.

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business comes from builder, both new and enhanced, business. If it, meaning legislation or regulation, affects a builders business, it will directly impact the associate's, meaning you, business.

How so? Some examples that most of us have already experienced; • If land or business is legislated or regulated it can cause the builder to either a) give up the land meaning less homes for you to sell product or service, or...

• Passing the cost on to the home buyer which may cause, by price jump, less qualified buyers, meaning less home built meaning less product or services to sell or...

• The builder passes the cost on to the vendor. Ever hear the phrase "sharpen your pencil" or "I have to send this out to other potential vendors for best available pricing or contract."

What does the cost being passed on to the associate mean?

Less net profits, less overall sales volume and/or less commissions or reduced bonuses.

• "If It Affects Builders It Will Affect Associates" I am asking you to get off the bench and get into the game. Politics is very real and it without question impacts your bottom line and your opportunities for growth. You can't let "others" take care of you. You are the only one who has a say in your present and future career and family needs that will eventually lead to retirement years. Don't let yourself get to a point where you will say "I wish I had done more to protect my earning potential. If It Affects Builders It Will Affect Associates" Now, if what I wrote resonates with you, please visit the NAHB web site www.nahb.org, click on the advocate heading and click on build Pac in the drop down list. To get a glimpse of some of the resent legal issues being dealt with click on the research tab and click on NAHB priorities from the drop down list.

If you'd like to speak with me personally, call me, I would love to have a conversation regarding the importance of BUILD-PAC (732) 232-6451 or email me mkurpiel@universalsupply.com I invest in BUILD-PAC for my peace of mind and for my career. I wouldn't ask you to do the same unless I had "skin in the game."

Please consider contributing to the Build-Pac and HOMEPAC. Another way to contribute is to encourage others to become members, the bigger the voice the bigger the impact.

Chamber Chatter - September 9, 2015

PROTECTING YOUR INVESTMENT When it comes to economic development, no deal is guaranteed. Even with the most detailed financial analysis, sometimes a project just doesn't succeed. One question we receive quite often is what happens when we provide incentives to a company to locate in Wichita Falls, and they can't make it work?

We have two standard types of incentives at our disposal. One is called Cash for Jobs; this incentive is not paid until a company has employed a certain number of people for a predetermined period of time.

In effect, this incentive has already paid off for Wichita Falls by the time it's provided to the company, because those wages have been pumped into our economy before the payment is made.

The second type of incentive is a forgivable loan, typically provided to assist with the purchase of a piece of equipment, a building or some other fixed asset.

When we provide this sort of incentive today, we make sure that the City has a first position on whatever is being financed. If a deal goes south, the City can repossess the asset and sell it.

A good example is ULM trucking. When the company ceased operations and the owner sold the building, the City, having a first lien of deed of trust on the building, was paid back everything it was owed. It's not exactly the outcome we hoped for, but at the end of the day, your investment was protected. Your economic development team takes its responsibility very seriously, and we will continue to protect your interests as we work to create new jobs and new investments in the community.

Let's build something extraordinary!

Henry Florsheim President & CEO henry@wichitafallschamber.com PS - We can also provide training funds, tax abatements and other incentives depending on the project. The two examples detailed above are the most commonly used programs.

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Continued from page 4

and advertising on the buses pay the costs to operate the system.

WINDOWS, DOORS Leiker noted that the city receives two cents for every AND MORE! 522 Beverly Drive dollar spent in the city. Of this two cents, one and one-half cents 723-1436 Wichita Falls, Texas 76309 goes to the city’s general fund, while the other half cent is evenly split between Type A and Type B sales tax corporations (otherwise known as 4A and 4B).

Leiker said it takes approximately six months to create the Always Remember do Business with Association Members! budget.

The staff works on it to from April through June.

In July there are reviews and a council workshop. In August, the budget BRYAN WAGGONER is formally submitted to the city council. Public hearings are also 3907 Kell BoulevarE t WJDIJUB 'BMMT t Texas 76308 scheduled during August and September. The budget is formally adopted in September and takes effect in October. The budget is for the period from October 1, through the next September 30.

He said expenditures for the 2015-2016 budget are expected to be $171.2 million. That is an increase of three percent over the previous year. Among the large planned expenditures are replacing the fire and police radio system and Wood Burning & Gas Fireplaces, Outdoor Kitchens the flood control project. & Supplies Revenue is expected to total $169.2 million. This is up 2.3 Now an Exclusive Dealer for: DAVINCI FIREPLACES percent. For the $2 million difference in revenues and www.davincifireplace.com www.realstone.com expenditures, Leiker noted, “We are using excess reserve funds in the amount of $2 million for some one-time capital projects.”

He explained that general fund operations should take $71 million. Of that, 71 percent is for personnel. Fire and police take 51 percent; engineering and streets take 11 percent; parks, Johnny McClane - Owner www.theembershop.com (940)692-6300 recreation, library, mowing and cemeteries take 10 percent; and info@theembershop.com (940)704-9481 tech support takes five percent.

4101 McNiel Avenue, Wichita Falls, TX 76308 The city’s certified property tax base is $4.77 billion. That is Serving Texas & Oklahoma Since 1971 a 3.19 percent increase from last year.

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Lowe’s - Visit www.LowesForPros.com/NAHB or call 877-435-2440 and register to save 2% on your Lowe’s Accounts Receivable (LAR) purchases and free delivery on purchases over $500. Save an additional 5% every day at the store when they mention the 5% at time of purchase and when using their LAR. General Motors - $500 exclusive private offer on most Buick, Chevrolet and GMC vehicles. Business Owners receive a $1000 private offer on select vehicles and may also qualify for additional incentives, visit www.nahb.org/ma and click on the GM logo to find out more.

AT&T, Verizon, Sprint & T-Mobile - Savings up to 35% including a free analysis of new and existing plans.

Program offers free mobile to ANY mobile, free mobile device management, dedicated help desk support, and much more. Visit www.eMemberBenefits.com/NAHB or call 866-430-NAHB (6242).

2-10 Home Buyers Warranty - Visit www.2-10.com/NAHB or call 855-280-1328 to receive exclusive access to discounts on select products, including the Builder Backed Service Program and the systems and appliances warranty.

AXA Equitable - Offers full-service, low-cost retirement plans that can help reduce taxes while saving for life in retirement. Visit www.axa.com/nahb or call 800-523-1125, option 3, department 2046 and mention NAHB. UPS Savings Program & YRC Freight - UPS discounts of up to 36% on a broad portfolio of shipping services.

Savings of at least 70% on less-than-truckload shipments 150 lbs. or more with UPS Freight and YRC Freight.

Visit www.1800members.com/NAHB or call 1.800.MEMBERS (800-636-2377) for more information.

TransFirst - Payment solutions with average savings of 16% per year. Web/mobile tools, credit card and eCheck processing and more. Free "Savings Analysis" call 800-613-0148 or visit www.TransFirstAssociation.com/NAHB. Dell - Up to 30% off on all Dell computers. Call 800-757-8442 and Mention NAHB or visit www.dell.com/nahb Associated Petroleum Products (APP) - Earn $0.015 for EVERY gallon purchased using the APP Fuel Card program. Visit www.associatedpetroleum.com/nahb to enroll or call 800-929-5243, Option 6 & mention NAHB. GEICO - Exclusive discounts for members on auto and home owners insurance. Visit www.geico.com/disc/nahb or call 800-368-2734 and mention NAHB for a free quote.

Hertz - Up to 20% off on rental cars and FREE Gold Plus Rewards membership. Visit www.hertz.com/nahb or call 800-654-2200 and use CDP# 51046.

Avis - Up to 25% off rental cars and FREE Avis Preferred Service membership at www.avis.com/nahb or call 800-331-1212 and use AWD code G572900 Budget - Up to 20% off rental cars and FREE Budget Fastbreak at www.budget.com/nahb or call 800-283-4387 and use BCD code Z536900 Office Depot - 10% off all delivery orders. Free shipping on orders of $50 or more. Call 800-274-2753 mention NAHB. Omaha Steaks - Save 10%, in addition to any online specials. www.OSincentives.com/promo/nahb Endless Vacation Rentals - 25% discount on over 200,000 vacation rentals worldwide. Call 877-782-9387 and mention NAHB at time of reservation or go to www.endlessvacationrentals.com/nahb Wyndham Hotel Group - 15% off at over 7,400 hotels. Call 877-670-7088 and mention ID 8000002688. Go to www.nahb.org/ma and click on the Wyndham logo to find out more FTD - 20% off floral arrangements and gifts at www.ftd.com/nahb or call 800-SEND-FTD use code 17421 NAHB Career Center www.nahb.org/careers - 20% off of standard rates for job posting & 15% off other HR services.

Version 4.27.2015

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COLUMBUS DAY

Continued from page 6

Because of less economic activity in recent years, the state sales tax for the city is down a bit in recent years, he noted.

Leiker said the city’s water and sewer fund is extremely challenging financially in recent years because of the drought. “Water use isn’t expected to return to pre-drought numbers of 7.6 billion gallons�

He said citizens are more attuned to saving water in such uses as landscaping. “The forecast sales in the new budget is for 5.8 billion gallons.�

Leiker noted that water and sewer fund balance reserves were used during the drought for the indirect potable reuse system and the direct potable reuse system. Therefore, the new budget maintains the current retail water rates so that the city can start replenishing the reserve fund. Money will also go to the Lake Ringgold project.

For persons wanting more information, Leiker also noted that the city’s website contains a wealth of information concerning the budget.

Columbus Day is a U.S. holiday that commemorates the landing of Christopher Columbus in the New World on October 12, 1492. It was unofficially celebrated in a number of cities and states as early as the 18th century but did not become a federal holiday until the 1937. For many, the holiday is a way of both honoring Columbus’ achievements and celebrating Italian-American heritage. Throughout its history, Columbus Day and the man who inspired it have generated controversy, and many alternatives to the holiday have appeared in recent years.

A U.S. national holiday since 1937, Columbus Day commemorates the arrival of Christopher Columbus in the New World on October 12, 1492. The Italian-born explorer had set sail two months earlier, backed by the There were 9 new home permits Spanish monarchs King Ferdinand and Queen Isabella. He pulled in September in the City of intended to chart a western sea route to China, India and Wichita Falls. 6 were from builder the fabled gold and Spice Islands of Asia; instead, he landed members, 2 from Habitat for in the Bahamas, becoming the first European to explore Humanity and one by owner. the Americas since the Vikings set up colonies in The total permits pulled to date is 42 with 31 being from NTHBA Builder Members, 3 from Greenland and Newfoundland during the 10th century.

DID YOU KNOW? Contrary to popular belief, most educated Europeans in Columbus' day understood that the world was round, but they did not yet know that the Pacific Ocean existed.

As a result, Columbus and his contemporaries assumed that only the Atlantic lay between Europe and the riches of the East Indies.

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These figures project only the permits pulled in the City limits of Wichita Falls.

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Later that month, Columbus sighted Cuba and believed it was mainland China; in December the expedition found Hispaniola, which he thought might be Japan. There, he established Spain’s first colony in the Americas with 39 of his men. In March 1493, the explorer returned to Spain in triumph, bearing gold, spices and “Indian” captives. He crossed the Atlantic several more times before his death in 1506; by his third journey, he realized that he hadn’t reached Asia but instead had stumbled upon a continent previously unknown to Europeans.

COLUMBUS DAY IN THE UNITED STATES The first Columbus Day celebration took place in 1792, when New York’s Columbian Order–better known as Tammany Hall–held an event to commemorate the historic landing’s 300th anniversary. Taking pride in Columbus’ birthplace and faith, Italian and Catholic communities in various parts of the country began organizing annual religious ceremonies and parades in his honor. In 1892, President Benjamin Harrison issued a proclamation encouraging Americans to mark the 400th anniversary of Columbus’ voyage with patriotic festivities, writing, “On that day let the people, so far as possible, cease from toil and devote themselves to such exercises as may best express honor to the discoverer and their appreciation of the great achievements of the four completed centuries of American life.”

In 1937, President Franklin D. Roosevelt proclaimed Columbus Day a national holiday, largely as a result of intense lobbying by the Knights of Columbus, an influential Catholic fraternal benefits organization. Originally observed every October 12, it was fixed to the second Monday in October in 1971.

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COLUMBUS DAY ALTERNATIVES Opposition to Columbus Day dates back to the 19th century, when anti-immigrant groups in the United States rejected the holiday because of its association with Catholicism. In recent decades, Native Americans and other groups have protested the celebration of an event that indirectly resulted in the colonization of the Americas and the death of millions: European settlers brought a host of infectious diseases, including smallpox and influenza that decimated indigenous populations; warfare between Native Americans and the colonists claimed many lives as well. The image of Christopher Columbus as an intrepid hero has also been called into question. Upon arriving in the Bahamas, the explorer and his men forced the native peoples they found there into slavery; later, while serving as the governor of Hispaniola, he allegedly imposed barbaric forms of punishment, including torture.

Continues on page 10

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Continued from page 9

In many Latin American nations, the anniversary of Columbus’ landing has traditionally been observed as the Dìa de la Raza (“Day of the Race”), a celebration of Hispanic culture’s diverse roots. In 2002, Venezuela renamed the holiday Dìa de la Resistencia Indìgena (“Day of Indigenous Resistance”) to recognize native peoples and their experience. Several U.S. cities and states have replaced Columbus Day with alternative days of remembrance; examples include Berkeley’s Indigenous Peoples Day, South Dakota’s Native American Day and Hawaii’s Discoverer’s Day, which commemorates the arrival of Polynesian settlers.

COLUMBUS DAY TRADITIONS In many parts of the United States, Columbus Day has evolved into a celebration of Italian-American heritage.

Local groups host parades and street fairs featuring colorful costumes, music and Italian food. In cities and towns that use the day to honor indigenous peoples, activities include pow-wows, traditional dance and lessons about Native American culture.

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Parade of Homes & Special Events Committee met to wrap up the 6th Annual 4 Person Scramble Golf Tournament. The response has been great with 31 teams, 40 hole sponsors, Morrison Supply sponsoring lunch, Atmos Energy sponsoring drinks, Lonestar Wastewater sponsoring range balls and many members donating door prizes and goody bag items. Thank you to the Parade of Homes Committee for their hard work putting the tournament together as well as their success for the year with the Parade of Homes, Energy Code Seminar and Family Night.

Publication & Communications Committee met to review changes and additions they feel are important to make the North Texas Home Builders Association web site the best it can be. Crane West will be starting on the redesign of the web site toward the middle to end of October. We are looking forward to seeing the new look.

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As October brings the install of newly elected Officers & Directors it also brings new committees.

The North Texas Home Builders Association would like to thank all the members who have volunteered their time to serve on the 2014-2015 committees and the accomplishments of each committee. We cannot perform without you. Again thank you.

We welcome the new Officers & Directors & the new 2015-2016 Committee members.

If you have any questions, ideas or suggestions, we encourage you to contact a Board member or committee member and let them know. We always welcome feedback.

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Building Energy Codes Background Recent Energy Codes Are Not Cost-Effective: Model building energy codes are developed by private • Earlier versions of the energy codes were far organizations (e.g. International Codes Council (ICC) and the more more cost-effective. By using energy-eff American Society of Heating, Refrigerating and Air-Conditioning cient windows or lighting, consumers saw a big Engineers (ASHRAE)), updated every three years and then bang for their buck. But now, the codes include adopted by state and local governments. While the federal very costly requirements that do not have the government does not “adopt” codes, the Department of Energy same return on investment.

(DOE) plays a significant role in their development, and also • An average home built to the 2012 energy code, works with the states to encourage adoption and enforcement. compared to the 2009 energy code, would cost a homeowner thousands of dollars in increased DOE’s role in code development has expanded, moving beyond construciton, and it would take them anywhere the original authorization of the “technical advisor”, to pushing from 8.9 to 17.3 years to break even (through energy goals, and at times advocating for certain products or utility savings). Keep in mind the codes are technologies. updated every three years so this cost keeps growing.

NAHB believes that DOE should return to their “technical • NAHB polling shows that homeowners are advisor” role and stop any advocacy efforts. willing to invest in energy efficiency, but expect a payback of 7 years. Commercial developers Recent Building Energy Codes expect a payback of 5 years.

Earlier versions of these model codes were far more • By driving up costs in the energy code, lower cost-effective. Overtime, they have become overly income families will be forced into existing burdensonme - expensive, inflexible, and very prescriptive. housing, which tend to use far more energy than new housing.

The 2012 International Energy Conservation Code (IECC) saw a drastic increase in cost, compared to the 2009 IECC, without Energy Codes Should Be Product/Technology Neutral saving the homeowner much in reduced utility bills. The chart • Some manufacturers have realized that by below shows average utility savings, compared to increases in mandating their product in the code, they can constructions costs. Climate zone 4 has a 17.3 year payback gain market advantage. For example, wall period - most homeowners do not stay in their homes for that constructions favor foam sheathing over wood long. Some advocates are pushing for paybacks that extend products in certain climate zones. Any code over the life a building. should be technology and product neutral and should not pick winners and losers.

• NAHB has sought DOE support for energyneutral tradeoffs that give builders more flexibility to meet homeowners’ needs, while also reaching the energy goals. Unfortunately DOE did not support these proposals. Builders can meet these goals, but they need their hands untied.

Talking Points Isaiah 7:14 Energy Codes Are Government Mandates: • Many claim that energy codes are “voluntary”.

They are not. These codes are REQUIRED for EVERY home in a jurisdiction, including housing for low-income families and first time home buyers.

• While the federal government does not adopt codes nationally, DOE has used federal funding to “incent” states to adopt the latest codes.

These then become mandates in the states.

The Role of the Federal Government • DOE should return to its congressionally authorized role as a “technical advisor” and not push certain energy goals, or any particular products/technologies.

• In the past, DOE has given money to states to adopt the latest code. Federal funds should not be used for this purpose. Instead, DOE should help states implement whatever requirements the state chooses, including training code officials and aiding compliance/enforcement efforsts.

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