September 2016 reporter

NORTH TEXAS HOMEBUILDERS ASSOCIATION

4410 Fairway Boulevard Wichita Falls, TX 76308

Volume 9, No. 9 • September 2016

P: 940.692.2211 F: 940.692.2214

www.nthba.com

From the President I am proud to announce the NTHBA had over 21 adults attend the Sunbelt Builder’s Show this year! We continue to be well represented at the State Committee & Board meetings. Our Young Professionals had the opportunity to attend the TAB HOMEPAC event, the Fundango. While attending the event they had the opportunity to meet Chip & Joanna Gains from the hit HGTV series, Fixer-upper. Being the Opening session speakers, Chip & Joanna Gains packed the house with over 1000 attendees. If you ever wondered, they are just as fun in person as you see them on TV. While attending the TAB Committee & Board meetings along with the Sunbelt Builders Show, we had the opportunity to sit through many educational sessions. We were educated again on the 2015 Energy Codes while a few of the TAB and NAHB endorsed program such as HOUZZ and Contract Marketing Pro’s explained how their products work.

As always, the TAB Meetings were packed with information.

During the Government Relations Committee Meeting there were updates on several items. TAB reported the Texas Supreme Court released the Bizio’s Opinion. This was a case with where Lakewood Village, a general-law municipality, was enforcing its building codes and sizable fees on a homeowner in the city’s ETJ, where property owners do not receive city services nor have the right to vote in city council elections. The finding was that the Texas Local Government Code does not grand general-law municipalities the power to enforce building code ordinances within their respective ETJ. This decision is a major victory for private property rights and housing affordability and makes it Continues on page 3

Special Thanks to our 2016 NTHBA Partners: Diamond Atmos Energy Platinum First National Bank Guarantee Title

What’s

INSIDE

• Annual Golf Tournament • SAFB 75th Anniversary • YP Clay Shoot

• Housing of Representatives Public Hearing • Issues and Events Facing SAFB By: Lee Grace

• Housing Industry Looking For Change

Renewals ABC Supply..............................................Victoria Longo American National Bank........................Brad Davidson American National Bank............................Chris Rogers Breegle Abbey Carpet & Floor.....................Bob Hayes Charles Barr Building Co..............................Charles Barr Christmas In Action........................................Bailey Rich First National Bank..................................Wayne Pharries First National Bank..................................Kevin Goldstein Harmon & Holcomb Homes..................Justin Holcomb Landmark Title.............................................Cindy David R.J. Wachsman Homes....................Tanner Wachsman Shoop’s Texas Termite...............................David Shoop Woodco Supply.............................Charles Vergauwen

Thanks for Renewing!

General Membership Meeting Thursday, August 11, 2016 Kemp Center for the Arts 1300 Lamar 11:30AM Guest Speaker: Tommy Ayers of the Lantern House Presentation: LED Lighting

September Birthdays Mark Hinds.......................................................................2 David Bedingfield...........................................................5 David Shoop....................................................................7 Scott Hollars...................................................................10 Bill Holstead....................................................................18 Justin Jones....................................................................18 Felix Castillo....................................................................20 Shane Fitzhenry.............................................................20 Bruce Jones...................................................................21 Jesse Guadalcazar.......................................................25 Randy Pebworth...........................................................27 Kolter Lukert...................................................................29

Happy Birthday!

2016 Dates to Remember • September 1 General Membership Meeting • September 26 Annual Golf Tournament • October 6 General Membership Meeting • October 14 Young Professionals Clay Shoot • November 3 General Membership Meeting • November 17-18 TAB Fall Committee & Board Meetings, Austin, TX. • December 1 Annual Christmas Party

Calendar of Events General Membership...............................September 1, 2016 Meeting.......................................................................11:30AM Larbor Day (Office Closed).....................September 5, 2016 Parade of Homes...................................September 14, 2016 & Special Events Committee....................................11:00AM Government Affairs................................September 15, 2016 Committee Meeting..................................................11:00AM Budget Committee................................September 21, 2016 Meeting.......................................................................10:30AM Board of Directors..................................September 21, 2016 Meeting.......................................................................11:00AM 7th Annual Golf......................................September 26, 2016 Tournament................................................................11:30AM

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clear that the only express power granted by Texas Local Government Code sections 212.002 and 212.003 is the authority to enforce plating and subdivision ordinances (and not building codes) in ta city’s ETC. Builders were reminded the 2015 Energy Codes take effect September 1st. TAB reported the NAHB has reached a settlement with OSHA resolving NAHB’s legal challenge to OSHA’s Confined Spaces in Construction final rule and has very limited application to residential home building.

A complete Q & A can be found at https://www.osha.gov/coonfinedspaces/.

It was also reported in spite of strong opposition of NAHB the Department of Labor issued the final overtime rule that will take effect on December 1st and have significant ramifications for many employers, including home building firms and non-profit organizations such as local and state HBA’s. This is just a short list of information received at the GA meeting.

During the meeting the TAB proudly presented Chairman Phil King with a Texas Housing Champion Award for his many years of tireless advocacy on behalf of Texas home owners, future homebuyers and home builders. Rep. King has consistently worked to keep Texas a low tax and light regulation business environment.

After attending several TAB Committee meetings several NTHBA members got the pleasure of enjoying an evening at the Cowboys Golf Club attending the Strucsure Home Warranty & Morrison Supply appreciation event. Our Young Professionals enjoyed anevent of their own networking with Young Professionals from all over Texas at the Gaylord Glass Cactus Club.

With all the happenings for the week, meetings, educational sessions and exhibits, there was no way you could attend everything which made for a tight schedule and busy week.

2015 /2016 Officers & Directors President – Eddie Holcomb Vice President – Michael Grassi Associate Vice President – Jake Munholland Treasurer – Scott Flinn Secretary – Sharon Tucker Immediate Past President – John Harmon Builder Directors David Bedingfield 1yr Steve Lane 1yr Doug McCulloch 2yr Steven Klasse 2yr

Associate Directors Cindy David 1yr Kolter Lukert 2yr

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

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Issues and events facing Sheppard discussed at Home Builders luncheon

By: Lee Grace

Jon Larvick, president/CEO of the Sheppard Military Affairs Committee, spoke about issues facing Sheppard Air Force Base (SAFB) and upcoming events open to the public during the August Membership Luncheon of the North Texas Home Builders Association held Thursday, Aug. 11, at the Kemp Center for the Arts.

He said there are two main areas of importance for the Sheppard Military Affairs Committee: (1) building and maintaining the relationship between the base and the community and (2) maintaining and growing SAFB. He stressed that the base is the area’s largest employer with 20 percent of the workforce and has a tremendous economic impact on the community.

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“While you have heard that our military is shrinking, Sheppard is growing. Both maintenance training and pilot training are growing to meet the shortages currently in our military.”

He noted that the base’s 75th anniversary will be Sept. 17 and 18. He also said that ENJJPT (European NATO Joint Jet Pilot Training program) is celebrating its 35th anniversary this year at Sheppard.

Larvick said to remember “CPR” when you think of SAFB. “C” stands for “come celebrate with us.” “P” is for the Sheppard Military Affairs Committee Facebook page. “Please like us.” “R” is for RISK! He explained that the Department of Defense is begging to close bases. “The Department of Defense has 22 percent excess infrastructure including 32 percent excess in the Air Force.” Base closings are a very real possibility. This would have a tremendously negative impact on our community.

“When considering keeping a base open or closing it, they consider land availability, air space availability, and the environment (both physical and political). That list is scary to us.”

He noted that the effect of wind farms on SAFB could be devastating. He advised the audience to look up two websites with opposing views. These are Horn Energy and Clay County Against Wind Farms.

Larvick said wind farms impact air space by causing radar interference. He also said the 450-foot structures affect the flight paths for low flying training missions. “Where proposed, the new wind farms would have caused SAFB to lose 104 training days last year.”

Anyone can logically assume a loss of one-third of the flight training days would cause the Air Force to re-evaluate the role of SAFB and affect the determination of keeping the base open.

Larvick said a hearing on the wind farm issue is scheduled for Wednesday, Aug. 24 at Midwestern State University, Dillard College of Business, Room 121 at 9 a.m.

The Sheppard Military Affairs Committee will meet to hear invited and public testimony regarding “Maintaining Military Value of Defense Installations and Communities” with an emphasis on the relationship between military installations and wind energy development.

Under this topic, Larvick said issues related to the following Interim Charges will be discussed: • Explore how encroachment (environmental, technological, and architectural) impacts the vital Continues on page 6

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missions of our military bases in Texas and which policies can be put into place while retaining respect for private property rights, economic growth, and the operation of military August speaker Jon Larvick facilities. stands with NTHBA President • Explore adding Eddie Holcomb following the luncheon. notifications to the Texas Real Estate Commission Seller Disclosure Form, as well as a notification to buyers of new home construction, in order to inform buyers that a property may be located near a military installation or a military airport and could be affected by high noise or its air installation compatible use zones, or other operations.

• Assess ways the State of Texas can further aid our federal military installations and their communities in order to minimize the negative consequences of a potential forthcoming BRAC round by the federal government.

• Assess the continuing effect and the impact of sequestration and federal defense spending on Texas military bases, soldiers and their families, base communities, and Texas defense contractors.

Identify solutions to address issues raised by federal policy.

Anyone with questions regarding the hearing should email Paul.Theobald_HC@house.texas.gov.

The Dillard parking garage entrance is located on Hampstead Lane which intersects with Taft Boulevard, and will have available parking. The Committee will hear both invited and public testimony, with public testimony being limited to three minutes.

In other business, Atmos Energy made a presentation concerning “Call Before You Dig.” Sharon Tucker, Randy West and Anthony Bruno said you should call “811” 14 days before you plan to dig to ensure you are not digging into a utility line.

Monarch Catering catered the luncheon attended by approximately 60 persons. The Diamond Sponsor for the North Texas Home Builders Association is Atmos Energy, while the Platinum Sponsors are First National Bank and Guarantee Title.

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House of Representatives Public Hearing August 24th Several of the members of the NTHBA attended the House of Representatives Public Hearings on August 24th at the Dillard College of Business at MSU. It was a packed house.

The primary purpose of the Defense & Veteran’s Affairs Committee’s public hearing, made up of Chairman Susan Lewis King, Co-Chair Representative James Frank, Cesar Blanco, Matt Schaffer and Paul Theobald, was to hear invited and public testimony regarding the topic: Maintaining Military Value of Defense Installations and Communities; with an emphasis on the relationship between military installations and wind energy development.

There were 19 invited to testify and many others from the public who signed up to testify. Those who testified covered a broad spectrum from city officials, SAFB officials, the Mayor of Corpus Christi, a representative from the Electric Reliable Council of Texas (ERCOT) as well as APEX Clean Energy. The majority who testified were concerned about the Wind Farm encroachments around SAFB and the Mayor of Corpus expressed her concerns about the Wind Farm as well. She mentioned her area has six projected wind farms they are dealing with at this time.

ERCOT and APEX were testifying in favor of alternative energy and Wind Farms. They tried their best to convince the committee the process of approval takes several steps and have to be approved by both the FFA and DoD Clearing House.

They mentioned when it is reviewed by either of these entities, and one or both find the Wind Farms are not compatible to an installation, due to safety issues such as radar or is a threat to security because they are unable to train the much needed pilots, they will not approve the project.

The APEX representative explained how his company works through a project and said they themselves would abort a project if the felt it was not compatible with an installation and they could not resolve the issues that make in incompatible. He mentioned he felt that was the same across the board with most others as well.

At this time there is no clear cut determination on whether the Wind Farms will be erected in Clay County or not. As for the testimony of ERCOT and

APEX the project can drag on for several years before it is determined but for now, unless the company can resolve the issues with SAFB there is a very good chance the project will not happen.

In the mean while the NTHBA will continue to follow the project and report any updates.

There were 3 New Home Permits pulled in the City of Wichita Falls in August.

All were from NTHBA Builder Members. There have been 47 New Home Permits pulled in the City of Wichita Falls to date and 33 were from NTHBA Builder Members.

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Housing industry hoping for change after Obama

By Vicki Needham

H o u s i n g industry advocates have a message for the next president: It's time to move on from the crash.

The housing market collapsed nearly 10 years ago, yet the sector’s growth remains stagnant, with sales and construction well below their peaks in the early 2000s.

The industry is looking to Hillary Clinton or Donald Trump to get things back on track. They are pushing the presidential candidates to shift the focus of housing policy to cutting and clarifying regulations and reforming the nation's mortgage giants Fannie Mae and Freddie Mac.

“We have two candidates who are at least talking about housing and growing the housing market as opposed to what the current administration is doing,” said David Stevens, head of the Mortgage Bankers Association. “[The Obama administration] walked into a housing recession, and it was all about regulation and enforcement. It was not about creating opportunity, it was about protecting homeowners, putting tougher rules in place and stopping bad practices,” Stevens said.

Stevens said he doesn’t blame the White House for their sweeping regulatory efforts because President Obama inherited a "terrible recession" brought on by a housing collapse. Still, he said the next president would Continues on page 12

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have an opportunity to change the dialogue.

“I think the way we should all be looking at this is at its core we have a chance to pivot here with a new administration, whoever it is, because both are coming at this with much more of a blank-slate approach with a clean table of options without all of this mess in the front window related to a housing recession,” he said.

“They’re trying to look at both sides with ways to extend homeownership, and regardless of anything else, just that attitude is going to be welcomed.”

Both presidential campaigns talked to homebuilders this past week during industry meetings in Miami.

Jerry Howard, president of the National Association of Home Builders, who hosted the Clinton and Trump campaigns, said it is time to get beyond the implosion of the housing market.

“We’ve now gotten far enough past the housing crisis, and I would suggest respectfully that the efforts since the housing crisis have been Band-Aids. And now we really need to look at the root of the problems and how to correct them,” Howard said.

Builders plan to ask the next administration to look more closely at the goals for the industry. Specifically, they are calling for federal rules to be clarified to boost homeownership while making sure that consumers are protected from any sort of "unseemly activity," Howard said.

“You need legislation that simplifies the home buying process while protecting the homebuyer,” he said.

Howard noted the Thursday economic message from Clinton, the Democratic nominee, called for reduction of red tape and said he hopes translates to reducing some of the burdens on the market.

“Again, being an optimist, I’m hopeful cutting red tape means cutting the problems that business people have in complying with regulations due to the slowness of bureaucracy to react,” Howard said.

On average, regulations imposed by all levels of government account for 24.3 percent of the sales price of a new single-family home, according to a May study by the NAHB. Trump, the Republican nominee, seized on that data during his Thursday remarks, calling what is happening on the regulatory front under the Obama administration “horrible.”

"No one other than the energy industry is regulated more than the home building industry," Trump said.

"Twenty-five percent of the cost of a home is due to regulation. I think we should get that down to about 2 percent."

The Republican presidential nominee vowed to wipe out a majority of the regulatory burdens starting with a moratorium.

"We will impose a temporary moratorium order on

new agency regulations," Trump said.

"We'll cancel all illegal and overreaching executive orders signed by President Obama," he said.

"We will eliminate all regulations that kill jobs. We will remove the bureaucrats that only know how to kill jobs and replace them with experts who know how to create jobs without regulations."

Stevens said a wholesale elimination of regulations from lending and servicing to construction would be difficult.

“A pledge by a candidate to roll back regulation is not as easy to complete as it is to say it because a lot of it would require Congress to roll it back,” he said.

Stevens and Howard said there are plenty of areas where a new president could start making changes, including the promotion of home buying, adding incentives for building entry-level housing, improving technology to better manage the mortgage approval process and working to speed up the regulatory process.

The industry also is calling on Congress to overhaul Fannie and Freddie and wants the new administration to look at improving qualified mortgage rules and streamlining others to create more liquidity.

Howard wants a the next president to insist that bureaucrats implementing regulations do so as quickly as possible "because the time and cost it takes to comply is absolutely and directly due to the slowness of the regulators in making sure there is compliance."

Clinton has said she would seek clarity on housing rules and has proposed a broad agenda that includes help for first-time homebuyers seeking to save a down payment.

Gene Sperling, a top economic adviser to Clinton, spoke to the homebuilders and said that even though housing finance reform is "really tough," any legislation must include a government guarantee to protect the 30-year mortgage.

"You need a backstop to ensure the United States of America still has a 30-year fixed mortgage," Sperling said. "That is something that gives people the opportunity to become home owners in this country."

Builders and mortgage bankers cite statistics that Americans want to buy homes and say conditions must be improved to make it happen.

Another homebuilder’s survey found that 82 percent called a home purchase a good investment, including the key demographic of 18 to 29 year olds that has shown more interest in renting than buying.

Now it is just a matter of putting together a framework that works for the broader housing market.

“It’s a matter of getting the balance right making sure the rules are written in such a way that well-qualified buyers today and in the future aren’t boxed out because the rules are so narrow,” Stevens said.