Texas Hill Country Building Savvy December 2021

December 2021

Texas Hill Country | Homebuilding Industry Publication

2021 HCBA PARADE WRAP UP Melissa Eckert

HSB’S CAP ROCK CLUBHOUSE Named “Clubhouse of the Year”

REDISTRICTING OF CONGRESSIONAL DISTRICTS Jim Leonard

Rick & Rosario Nash And Their Award-Winning HCBA Parade Home

Celebrate Where you Belong

There is no better time for your family to join the club, create memories and enjoy an abundance of amenities in the secluded Lake & Hill Country. Located in the heart of Texas, The Club at Horseshoe Bay Resort is a sprawling property recognized as a tropical oasis.

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Building Savvy

SAVVY’S A-LIST A-LIST SAVVY’S Architectural Photography

Air Conditioning Jason Roberts Classic Services AC 210.789.2033 830.358.1499 www.classicairconditioningandwww.jasonroberts.biz heating.com Architecture

Architectural Photographer Delineations Jason Roberts and Associates 830.693.9408 210.789.2033 www.delineations.com www.jasonroberts.biz Banking Building Materials

BMC Hill Country National Bank 512.977.7400 512.756.7363

www.buildwithbmc.com

www.hillcountrynationalbank.com

Guido Companies

Building Materials 210.344.8321

MG Building Materials www.guidoconstruction.com 830.257.2300 www.mgbuildingmaterials.com

Destination Resort

Insulation

Doors The Club at Horseshoe Bay Resort The Front Door Company 830.598.3917 210.340.3141 www.hsbresort.com www.thefrontdoorco.com

Flooring Foam One and Flooring SunnOne Carpets 830.228.5040 210.349.7866 www.sunncarpets.com www.foamoneone.com

Electrician Electrician

Real Estate

Mortgage Company Aligned Mortgage Keller210.874.1630 Williams, River Hill Group 210.844.1542 www.alignedmortgage.com Terry Kemmy

Garage Doors Pest Control Roofing Hollywood-Crawford Accurate Pest Control Williamson Roofing One Swanky Shop 210.494.3434 210.495.0499 830.798.4371 830.798.0125 www.hollywoodcrawford.com www.accuratepest.net Interior Design & Furnishings

JPIElectric Electric JPI 210.233.6638 210.233.6638

www.jpielectric.com www.jpielectric.com Elevators Home Elevator of Texas Burk Energy Raters 210.340.5702 830.446.2279 www.homeelevator.com Energy Rating

www.oneswankyshop.com

www.williamsonroofing.com

Home Warranties Centricity Lighting 727.385.7599 Hill Country Lighting

Plumbing Title Diamond Company Plumbing 210.967.6100 Independence Title www.dptexas.com

830.257.2425

www.burkenergyraters.com

StrucSure www.hillcountrylighting.com 830-624-4450 www.strucsure.com

Fireplace Installations Integrity Fireplace Installations Turn 2 Flooring 210.294.1383 Flooring

Mortgages

512.560.9550

First United Mortgage Group Insulation

www.sunncarpets.com

210.296.5499 mschepper.firstunitedteam.com

Accent Granite & Marble

Insurance Hotchkiss Insurance Flawless Painting 210.581.0420 830.265.0170 www.hiallc.com Painting

830.693.1144

Kohutek Construction

www.accentgranite.com

www.independencetitle.com

Roofer Kendall County Roofing 830.331.2650 www.kendallcountyroofing.com

Klar Insulation 512.529.7787

Granite Countertops

Cabinetry

512.454.4500

512.949.7000 Carpentry

Home Technology 210.248.2556 HomeSmart

Plumbing Lumber and Millwork

Rendi’s Trim Carpentry

325.388.9278

Roddis Lumber ZK Plumbing

830.220.1983

www.homesmartanywhere.com

210.226.1426 806.282.4378

Specialty Electronics and Appliances HomeWerks 210.499.5760 www.sanantoniocentralvac.com Specialty Glass and Mirror B&T Glass 210.656.8507 www.btglassandmirror.com

www.roddislumber.com Luxury Iron Doors and Interiors AMS Group 210.366.0490

Title Company First American Title 817.918.2323 www.firstam.com

DISCLAIMER: Any articles included in this publication and/or opinions expressed therein do not necessarily re ect the views of N2 Publishing but 1800 A Broadway remain solely those of the author(s). The paid advertisements contained Kerrville, TX 78028 within the Building Savvy magazine are not endorsed or recommended by N2 Publishing or the publisher. Therefore, neither N2 Publishing nor the publisher 830-257-2425 may be held liable or responsible for business practices of these companies. NOTE: When community www.hillcountrylighting.com events take place, photographers may be present to take photos for that event and they may be used in this publication.

4

3

TERRY KEMMY

“ Te r r y i s s o c o rr ei ga itni vael when it comes to advertising properties in i n n o v a t i v e w a y s . We l o v e his creative thinking.”

TERRY KEMMY

Realtor ® terry0372@kw.com 210.844.1542 4

[From The Publisher]

REFLECTING ON 2021 As we reflect on a year that seemed to fly by, the question on everyone’s mind is: Is the housing market cooling or collapsing? It’s the subject of our Savvy Special Report article. Professional Builders’ Secrets from the Association of Professional Builders warns that although you might be thinking things have never looked better than they appear right now, you may be too busy to notice what’s going on; there may be something dark around the corner.

With the average rate on 30-year fixed loans expected to rise to 4% in 2022 (a full percentage point higher than it is now) according to the Mortgage Bankers Association, how much impact will it have? What will the longterm effects of the mortgage forbearance and Covid-19 relief have on the economy long term?

If we had a crystal ball, I don’t think we could have seen all the things that 2021 brought us, many that we never thought we’d see in our lifetime—lumber prices at $1,500 per thousand board feet, housing stock selling for as much as $100K over asking price and snowmageddon to name a few.

As we wrap up another year’s Focus Section calendar, the bottom

RTC

line is consumers crave for their homes to provide refuge from the craziness of the world around us with designs and features that support “recuperating and relaxing.” The new definition of “dream home” has one with a safe and clean environment with space, storage, daylight, fresh air, and warm colors.

Rendi's Trim Carpentry

We can only guess what 2022 may bring. I wish all of you Happy Holidays and hope that you have time for rest and reflection at

Excellence in Carpentry & Craftsmanship

the end of a tumultuous year. Cheers to a happy new year—and

Rendi Ornelas, Owner

hopefully a more sane one!

830.220.1983

Terry Kemmy Publisher 210.844.1542

5

[Focus Section] A safe and clean environment with space, storage, daylight, fresh air and warm colors are some of the items topping buyer wish lists.

THE 2022 HOME BUYER WHAT’S ON THEIR MIND AND ON THEIR WISH LIST?

By Beverly Smirnis

Antimicrobial Technology

C

onstructUtopia.com

Insulation, drywall, flooring products, ceramic tiles and plumbing

reports that consumers

fixtures are among the many common building products now

are unsatisfied with

offered with built-in antimicrobial technology. Because these

the home’s lack of designs

materials also have an added layer of protection against stains and

and features that support

odors caused by mold and bacteria growth, they also benefit from

“recuperating and relaxing.”

lasting longer.

More time at home spent during the

Heightened Concerns for IAQ

pandemic put a greater focus on the health and safety of our homes,

More cooking at home may provide us with better nutrition, but

prompting heightened awareness of

it can also mean more fine particulates and VOCs in our homes

things that we’ve been talking about

without proper venting precautions. Green Builder Media reminds

for a while now as well as some new

us that an often-overlooked culprit of indoor air contamination is

buzzwords you’ll continue to hear

the microwave exhaust fan. It is still common practice to install

more about.

recirculating microwave fans and even range hoods that pull air

6

from the cooktop through a filter only to blow the air back out into the kitchen. Venting to the outdoors is always the preferred method of Indoor Air Quality (IAQ) purists. Range hoods must be large enough to cover as much of the stovetop as possible.

Some health-conscious designers are also specifying “bathroom” fans placed in rooms adjacent to the kitchen. Panasonic makes fans that trigger automatically to turn the fan on and off when it senses moisture in the air. Keep in mind that fans must do the job right but should also operate quietly enough so that people will be more likely to use them.

The Return of Noise Pollution

Search “cloffice” on Pinterest for a plethora of ideas for

While it’s good to see the world trying to get back to normal,

turning closet space into an office space that can be

increasing traffic, engines revving, screeching brakes, roaring

nicely closed off when you’re ready to relax or entertain.

jets, and train horns blaring may also bring back disturbed sleep, decreased work productivity and elevated stress levels.

Studies have shown that 90% of exterior noise enters through the windows, not the walls. To the rescue, Soundproof Windows,

Open Space Can Be Too Open Sometimes

Inc., has adapted recording studio window soundproofing

Where open concept floorplans have been the cat’s meow of design for

technology to create a secondary soundproofing window that

a few decades at least, changes lie ahead as the work-from-home trend

installs inside, behind the existing window. The inner window

continues. The trend also means family members are spending more

essentially reduces noise from entering on three fronts: the type

time together at home overall; this may also mean extended family living

of materials used to make the pane, the ideal air space between

under one roof. The need for flexible private spaces is now underscored.

original window and insert, and loaded long-lasting seals. The

Converging pocket doors are one solution that is gaining traction. They

combination can reduce external noise by up to 95%. The company has also created a “second sliding patio door” that can be similarly installed inside or outside an existing door to add soundproofing qualities.

can offer the best of both worlds to transform connecting rooms into separate ones when privacy is needed. Modern hardware prevents the doors from jumping off the track. Available soft-close mechanisms work just like your soft-close cabinet drawer closers to prevent door slamming and pinched fingers. Pocket, sliding, and wall-mounted doors open effortlessly and close quietly and securely with just the touch of a fingertip.

High Value Assigned to “Simplification of Life” With the kitchen considered the work hub and central gathering spot for most homeowners, Whirlpool Pro recommends built-in appliances to leave countertops clutter-free. Coffee systems that fit seamlessly into the cabinetry rather than on the countertop are one example. Newer appliances are designed to help streamline cooking and cleanup.

Increasing cabinet space and including organizers help keep kitchens, baths, and other rooms more clutter-free.

An article in the Washington Post titled, “What today’s builders have (mostly) forgotten” cited garages being too narrow as an un-needed source of stress, requiring passengers to get out of the car before it’s pulled into the garage and the driver to squeeze out with only 24 inches Sherwin Williams’ Evergreen Fog is a nourishing and sophisticated gray-green.

of space between the side of the car and the inside wall of the garage.

Added garage space and better attic access can eliminate the expense and inconvenience of off-site storage. The Post article reminds builders that a stairway leading to attic storage space makes it easy to store seasonal items, and a stairway provides safer access.

7

The Post says that sensory experiences like being able to open a window to watch the rain are gone with the disappearance of generous roof overhangs. It points out that larger front porches, initially a way to keep doors dry, had the side benefit of encouraging interaction with the neighbors.

Hardware Resources’

Scan this QR code to see

“No Wiggle” magnetic

installation of FREEDiM

knife organizer soft-close

Wireless Door Sensors

pullout has a double-

from Tresco Lighting

sided magnetic bar to

allowing inside cabinet

accommodate blades up

Watch Johnson Hardware’s1060 SoftClose Pocket Door Hardware installation video.

lighting to be controlled

to 9” with a 6” handle.

by multiple doors with up

Rear plastic insert holds

to (4) sensors paired to a

additional steak knives

single receiver.

and utensils.

recommends pairing with either light, breezy neutrals, or vibrant jewel

Mental Well-Being At Home

tones for a more dramatic and luxe feel. Sherwin Williams’ Evergreen

Science proves that the lighting of our home environment can have

Fog is a mid-tone gray-green shown with beige, camel, or coffee brown accent colors. Noting that online searches for green paint colors have

a direct impact on our well-being. The human biological system

more than doubled since 2020, Glidden named “Guacamole” is its

craves contrast between exposure to light and dark; without it, our

color pick for 2022. Benjamin Moore’s picks for next year also follow

body’s natural circadian rhythm can be disturbed. This research is

the green trend—it shows a silvery green paired with a rich dark sage

vital because our circadian rhythm plays an essential role in keeping

green shade to add warmth and depth to a monochromatic palette.

us happy and healthy, controlling critical processes like sleep, body

Behr’s green is a cool refreshing green reminiscent of sea glass, while

temperature, immune response, and cognitive performance.

PPG goes with a soft, organic shade of green called Olive Sprig.

Research shows that eyes are most sensitive to blue light-- the kind emitted from TV, phone, and laptop screens, which is why watching

The bottom line: The 2022 definition of “dream home” isn’t over

TV or using your phone before bed can impact your sleep. The latest

the top, and it’s not about bells and whistles, or overly ornate, nor is

“smart light bulbs” use long-wavelength orange and yellow light, along

minimalistic the trend any longer. The new definition has more to do

with contrasting violet light—the colors occurring naturally at sunrise

with a safe and clean environment with space, storage, daylight, fresh

and sunset—to either wind down or wake up your body clock. Users

air, and warm colors. Future-proof your business by bringing all of this

connect to the smart bulb with an app and set it to suit their schedule

into the picture while demonstrating your attention to the details that

and sleep preferences. The bulb creates a lighting schedule and runs

make it eco-friendly, energy-efficient, and easy to maintain, and you’ve

through three modes each day: wake, active, and calm. The bulb

got the winning ticket.

appears as a regular white light while subtly adjusting the warmth or coolness and brightness throughout the day.

Beverly Smirnis is the co-founder of Building Savvy magazine and

2022’s Trending Paint Colors Set The Tone

publishes its flagship Dallas/Fort Worth edition. She and her business

While we abandon the colder tones of grey and white, warmer

partner and husband, Steve Smirnis, have served as judges for the

variations of the neutral palette remain the popular and safe choice

International Builders’ Show Best of IBS Awards and judged numerous

in common areas. However, darker and richer colors are emerging in

homes for builders association parade events across the country. Listen

those highly valued, more private areas of the home—libraries, studies,

to their Building Savvy Bottom Line podcast on Home Trade Show on

and particularly bedrooms. Dunn-Edwards’ pick for 2022 color of

iHeartRadio and TV Network.

the year is a warm, earthy and sophisticated shade of brown that it

8

Photo courtesy of Lifestyle by Stadler

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9

[Industry News]

By Jim Leonard President, Greenboro Homes

REDISTRICTING OF CONGRESSIONAL DISTRICTS MIXES THINGS UP

O

ne of the last items to be tackled was the redistricting of congressional districts as required under the state constitution.

The U.S. is required to hold a census count every ten years. This

Governor Greg Abbott called the state legislators back for several special sessions this year after the business they were charged with could not be completed during the 140-day regular session that concluded in May. One reason was that Democratic legislators left the state to ensure there would not be a quorum to vote on revisions to the state voting act. The delay cost more than a month of time in Austin, thus the special sessions.

information is used, among other things, to ensure that voting

districts are fair to the people who live in them.

The requirements of redistricting are equal population, preservation of existing political communities, partisan fairness, and racial fairness. Nonetheless, as soon as Gov. Abbott signed the bill, cries of racism began, claiming the new district maps did not fairly represent the growth in the state over the past ten years, especially among the Hispanic community, who represent more than 50% of the population growth in the state over the past ten years. They also felt that the new maps will provide the GOP with tighter control to maintain their advantage in the state to keep their seats during re-elections.

One of the changes affecting San Antonio is that Congressman Lloyd Doggett will no longer represent the east side of San Antonio. Doggett has primarily

10

served Travis County in congress, but after the 2010 census, he

Lawsuits regarding the new district maps have already been filed

ran in District 35 which stretches from Austin to the eastside of

by MALDEF and other groups that claim the new maps do not fairly

San Antonio. Originally created with the idea of being a Hispanic

represent the growth patterns in the state. It is not likely the suits will

district, Joaquin Castro announced his intent to run for the seat.

change anything but could drag on for some time. Claims are that

At the time Castro was in the state legislature. Charlie Gonzales,

the Republican-led state house and senate drew the boundaries to

who was the congressman in District 20, announced he would

strengthen their reelection chances and keep the state red. But the

retire at the end of his term and Castro decided to run for that

new districts only slightly alter the current maps and work both ways

district. It is not required for a candidate to live in the district

favoring incumbent democrats as well. With Texas districts as they are

he is elected to, so Castro could make that change. It’s unlikely

now the state will remain red for at least the next decade until a new

he could have defeated Doggett, so the move made sense for

census takes place and district maps are redrawn once again.

him. Now Doggett will run in the newly created District 37 which lies wholly in Travis County. A lifelong resident of Austin who currently lives on the eastside of Austin, Doggett proclaimed how satisfied he was to end his long career representing the people in the city he has always lived in. We will miss Doggett in our local district. He was a strong supporter of housing issues and was very visible at Build San Antonio Green events. We first met the congressman on a visit to Washington, D.C. when he first was elected to District 35 in 2011. He took the time to meet us on the

RESIDENTIAL DESIGN STRUCTURAL ENGINEERING

steps of congress even while his own bill was being read on the

INTERIOR SELECTIONS

house floor.

WIDEEFORMAT PRINTING

The newly constituted District 35 will likely remain Democrat given the map boundaries that have been laid out. The district will still stretch from San Antonio to Austin but will gain even more of San Antonio. Democrats that have expressed an interest in running, including the former candidate for governor, Wendy Davis, and longtime lightning rod, Trey Martinez Fischer. Trey has served in the state legislature for years, having lost his seat a few sessions back, only to come back and win it again. Trey was also one of the leaders that walked out of the regular session in Austin and beelined it to Washington to push Congress to enact voting rights legislation, to no avail

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Congressman Henry Cuellar, D-Laredo, will see

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his territory grow as well, picking up more of the south side of San Antonio and some of what Doggett leaves behind. Although a Democrat, Cuellar has supported many housing issues in the past and gets a lot of grief in Washington from his own party for leaning towards the middle. Cuellar is a fine statesman and we wish that more people in D.C. looked past partisanship as he does.

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[From the Trades]

By Hilory Parker, Nexstream

Casa Über Alles has officially begun its 6th year at Fredericksburg High School. With a focus on employable skills, the program develops awareness of job opportunities for students interested in lucrative careers that don’t require the time and expense of a college degree.

C

asa Über Alles has officially begun its 6th year at Fredericksburg High School. With

a focus on employable skills, the program develops awareness of job opportunities for students interested in lucrative careers that don’t require the time and expense of a college degree.

Richard Laughlin and other local building professionals have created a hands-on teaching course that empowers students with the skills and experience needed to find a job in today’s skilled building trades. The year-long project involves the construction of a high-end tiny home which is auctioned off at the end of the school year - the proceeds help to pay for next year’s materials.

Local tradespeople donate time and resources while also providing mentorship during every step of the building process. From carpenters and plumbers to electricians and smart home specialists, students are exposed to many different experts and are given real-world application in the building industry. Interest in adopting this program has been growing across the country.

A truly grassroots movement, it can be tailored to meet the needs for schools whether a building trades program currently exists or not. With the shortage of and rise in demand for skilled labor, the program seeks to bridge the gap between high school graduation and immediate gainful employment in the industry.

For more information visit HighSchoolBuildingTrades.org

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13

[Savvy Special Report]

COOLING OR COLLAPSING? KEY FACTORS TO CONSIDER ABOUT THE HOUSING MARKET Author Who Detailed Plight Of Fannie Mae, Freddie Mac Says Government Must Fill Gap For Minorities, Middle Class To Access Mortgages.

The question: With the mortgage forbearance program

Fortune reported that more than nine million homeowners were in

winding down and housing inventory hitting a 40-year low,

the mortgage forbearance program at the height of the pandemic.

After the economy posted one of the fastest recoveries in history,

where is the housing market headed amid dynamics of the

the Mortgage Bankers Association said there were still about 1.7

COVID-19 pandemic?

million borrowers enrolled in the program that allowed them to pause their payments. With the forbearance program now lapsed, Fortune predicts a major shake-up headed for the housing market due to all of these borrowers being phased out. When you consider that housing inventory is at a 40 year low, with just over 600,000 homes for sale right now on realtor.com, Fortune warns that even if a small percentage of these 1.7 million struggling borrowers opt

Lot Loans | Interim Construction Loans Commercial & Consumer Loans

to sell—rather than returning to their monthly payments—it could cause a shock in the housing market.

Shades of 2008? When the U.S. housing market collapsed in the Great Recession in 2008, Congress created the Federal Housing Finance Agency (FHFA) to regulate the mortgage industry. The FHFA placed Fannie Mae and Freddie Mac into a conservatorship, which led to Fannie and Freddie sending large payments to the U.S. Treasury.

“This isn’t a crisis of oversupply like in 2008,” says Tim Pagliara, the founder, chairman, and chief investment officer of CapWealth and the ForbesBooks author of Another Big Lie: How The Government Stole Billions From The American Dream Of Home Ownership. And Got Caught! “It is a crisis due to shortage. We are short 6.8 million singlefamily housing units while we have static demand for one millionplus new homes every year.

“Because of delays in the recapitalization of Fannie Mae and Freddie Mac of their release from conservatorship, the availability of credit

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has been constricted. As a result, minority homeownership has

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not kept pace, and black homeownership is at a 50-year low,” says

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Pagliara.

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Pagliara’s takeaways about the housing market:

A ProBuilder article cites NAR data showing that in August 2019, 30% of mortgage loans were backed by

•

the FHA, VA, or USDA. Compared to August 2021, the

Budget constraints are going to force the Biden administration to be creative. “By finishing the

share of government-backed loans had dropped to just

recapitalization of Fannie and Freddie and the release

23%. Furthermore, a record 73% of all new mortgage

of their conservatorship, the government can generate

debt in the first quarter of 2021 went to buyers with

over $50 billion in proceeds, which can be placed in a housing trust to assist communities and first-time

credit scores of 760 or above, According to the Urban

homebuyers,” Pagliara said.

Institute, first-time homebuyers with FHA loans have an average credit score of 676.

•

As the Federal Reserve System tapers, Pagliara says economic activity will need to accelerate – especially the housing market. “A strong housing market has

Pagliara points out the foreclosure crisis following the ‘08 housing

a multiplier effect on many things throughout the

crash was primarily because millions of homeowners were

economy,” Pagliara says. “Everything from paint to

underwater – i.e., their remaining mortgage balance was greater

appliance sales benefit.”

than their home’s value. Real estate and mortgage experts today say homeowners are generally likely to have more home equity than

•

Big real estate investors and asset management

those in ‘08.

firms are factors driving up home prices and making

But will a large sector of would-be buyers be left out without the

homeownership less accessible to average Americans.

government giving Fannie Mae and Freddie Mac more help?

“One result,” Pagliara says, “is too many renters

“Fannie Mae and Freddie Mac need capital so they can serve

who should be owning. If you can rent a home in a

their mission of providing long-term fixed-interest housing for the

neighborhood where people own, you should be able to

underserved and the middle class,” Pagliara says. “They are the

purchase that home.”

bedrock of the American middle class, the strongest engines of economic equality this country has ever invented.”

15

2315 Commerce St, Marble Falls, TX | 830.693.1144 | AccentGranite.com

16

[Savvy Finance]

By Steven Bankler, CPA

B

uilders need to adjust their workforce

AVOIDING PAYROLL TAX SURPRISES

continually, which can lead to complicated payrolls. The IRS and the state of Texas have a vested

interest in you getting payroll right, though,

•

claimant, an investigation may be initiated.

because employment taxes are a huge source of revenue for them.

•

A competitor or someone else reports that an employer may be misclassifying its workers.

While the IRS has its eye on the federal portion of payroll taxes, the Texas Workforce

A former worker files an unemployment claim. If no wages were reported for that

•

Commission is tasked with auditing Texas

A random audit of the employer is performed as part of TWC’s goal of auditing 2% of Texas businesses every year.

businesses over state payroll tax issues.

According to TWC, businesses are usually flagged for one of four reasons:

•

TWC decides to target a specific industry or geographical area (the construction industry has been targeted in past years).

17

As you can see, misclassifying workers as independent contractors

The best way to avoid surprises is to maintain excellent payroll

is a significant trigger. Misclassifying a worker as a contractor when

records and timely payments. “Many audits result in no finding of

they really operate as an employee means they’re on the hook to pay

anything wrong and are finished within a few hours, depending upon

their own employment taxes, which doesn’t happen as often as it

how well the employer has been keeping records of workers and

should. In 2014, the Fort Worth Star-Telegraph reported that nearly

payments to workers,” TWC states.

40% of Texas construction workers were misclassified. The problem

Proactive classification reviews and a Voluntary Classification

contributed to a $1.2 billion-a-year loss in tax income for Uncle Sam.

Settlement Program are available for certain businesses. Working

So, of course, they’d like to prevent that from happening again.

with a CPA from the start can help ensure regulations are followed

There could also be payroll deduction problems that cause your

and can represent you before tax auditors if that dreaded payroll

business to be flagged. Many of these can happen by accident.

audit letter does arrive.

Examples include child-support garnishments ordered by the court that bring a worker’s wages below the minimum wage and employee loan deductions that aren’t approved in writing per Texas Payday Law.

Steven Bankler has more than 44 years of experience in the accounting industry. Steven’s expertise lies in consulting,

Payroll issues can become a criminal offense particularly when

planning, tax, and asset protection, and exit strategy services for

employment taxes are collected from paychecks but not paid to the

closely-held businesses. He also provides litigation support (both

state or IRS. With the complexity of bookkeeping on construction

as a testifying expert witness and a consulting expert), business

projects, it’s a law that often trips up builders. And when that

negotiations, and estate planning. Visit www.bankler.com for

happens, each business owner and manager in charge of payroll

additional tax strategy tips and to learn more about Steven

can be held personally responsible for paying the overdue bill.

Bankler, CPA, Ltd.

Moreover, if it’s found that those parties knowingly evaded paying, prison may be part of the deal.

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Totally Connected 19

[Savvy Builder]

ARTISAN C R E AT I V E H O M E S Rick Nash of Artisan Creative Homes

Formerly owned by Texas Tech legendary football coach, Spike Dykes, this extensive remodel job featured an expansive open

was one of the eight builders featured

living area with soaring ceilings, custom moldings, walls of glass,

in the recent 2021 Hill Country

hardwood flooring, and a gorgeous view of the water feature on

Builders Association Parade of

own little park. And the house features so much more. Artisan

Ram Rock’s picturesque 11th tee box. The backyard is like its

Homes. And his home, at 105 Blue

also received second place for the best master suite in the HCBA Parade. This is quite a feat considering the stiff competition.

Ground in the Bay West section of

Nash is originally from Amarillo, TX, and right after high school

Horseshoe Bay, was unmistakably

became a painting contractor. Eight years into his trade he injured his back and needed a Plan B. “I had painted for many

impressive.

builders and they all had better homes and trucks than I did,” he said. “I decided that I wanted to be a builder/remodeler, so I hired on as a superintendent. I wasn’t making much but I enjoyed it and I was learning all aspects of the business. Working with subs and vendors always came easy to me, and I enjoyed learning the various trades from many of these guys.”

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Nash spent his early years in construction – in Amarillo and the Houston area – as a faux finish painter, and doing room additions, as well as general remodeling. His wife Rosario has been a solid partner in his success and growth and brings a ton of creative energy to their team. One of their crowning achievements was remodeling the dated Woodlands (north of Houston) Country Clubhouse totally transforming it into a source of pride for the members there.

About three and a half years ago, while living back in West Texas, Rick and Rosario decided to spend 10 days vacationing in and around Horseshoe Bay. In addition to relaxing a bit, Nash used this time to reach out to other builders, realtors, and business leaders. They had really fallen head over

heels with the Hill Country and the Highland Lakes area (as so many other West Texans have before them) and decided to make this a new home.

Before he headed back to Amarillo he formally applied to be a certified general contractor in Horseshoe Bay. A few weeks later he found out he was accepted and soon after they were packing their bags.

Artisan Creative Homes’s business model is built around house flipping, remodeling, and building spec homes. As with other builders in this market, the biggest day-to-day challenges are with the supply chain and fluctuating pricing issues. It’s virtually impossible to guarantee remodeling timelines and schedules to homeowners because of so many uncertainties with the delivery of products and materials. But since most of Nash’s work is in-house flipping or building specs he is his own client.

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Here’s what some of them had to share about their experience in working with Artisan Creative Homes: “Most of our clients have a good vision of what they want to do. Once we have a set of plans for a remodel, room addition, or new home we go through a selection process that helps us determine a workable budget. We try to set realistic budget numbers accounting for the issues we all know exist. But our main difference from others is the creative energy my wife and I bring to each project. We offer complete design packages within the client’s budget. We’re very good communicators with our clients and we treat each home as if it is our own home.”

Since Rick started out as a painting contractor he is keenly aware of treating his subs like he wanted to be treated when he was in their shoes. “I don’t ever make my subs chase me down for their checks. Communication is very important and I treat my teams with respect and let them know how thankful I am for their skill and commitment to excellence on my projects. I am simply an organizer of people and products. Without amazing subs and vendors, I do not have a business.”

“Rick is very professional. He’s one of most professional builders around here…very organized and runs a smooth schedule, and looks after his people.”

Zack Kirscht – ZK Plumbing “He’s very straightforward, very relatable which I love. Rick is easy for us to work with.

Nancy Bandy – Carter Floors “He has a niche business…high end remodel projects. They always do really good work, excellent work. Artisan has a great reputation!

Richard Weston – Williamson Roofing “Rick always communicates well with his customers and vendors. This helps the building of a new home go smoothly for everyone.”

Julie Causgrove – C&D Appliances “He’s just a good guy, an honest builder, very trustworthy. Rick always goes above and beyond the norm for treating his subs and trades partners. “ Kim Willis – Marble Falls Electric & AC “I can’t speak highly enough about Rick and his team. Whenever I turn over a client to him I am fully confident that they are in great hands. He’s got great vision and sees possibilities in properties that others don’t see. Rick is all about delivering quality.”

Chad Thibodeaux – Remax

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[Resort News]

HORSESHOE BAY RESORT’S NEW CAP ROCK CLUBHOUSE NAMED “CLUBHOUSE OF THE YEAR”

By Golf Inc. Magazine

Apple Rock golf courses with upscale and casual dining and an inviting, finely appointed pool cabana with ample amenities for swimming, lounging, sunning, dining, refreshment and socializing.

With the alluring surrounding scenery in mind, the Cap Rock clubhouse design draws in sunlight and outdoor scenery with slender roof openings and gently angled floor-to-ceiling windows. Three large rock-spire sculptures separate the entry, bar area, and dining room with boldly designed rock-adorned fireplaces.

As one Golf Inc. judge stated, “Rarely comes the opportunity to create a new recreational venue the breaks with traditional clubhouse aesthetics and unabashedly sets forth a built environment that is intriguing and unique. The contemporary architecture scale and interior design elements complement the rugged site and terrain without imposing a heavy footprint.”

In July, the elegant clubhouse dining space and spacious outdoor pool cabana completed the village-concept design that includes the Cap

The standard for excellence seems to keep climbing for the

Rock golf pro shop building and the Cap Rock Pavilion (for meetings and

Horseshoe Bay Resort. The world class resort just received

receptions), all connected by a winding drive, canopied by mature native

another huge accolade as Golf Inc. Magazine named the Cap

oaks. A new putting green adjacent to the golf shop ties together this

Rock Clubhouse as “Private Clubhouse of the Year” in their

pleasantly walkable chain of upscale amenities.

annual clubhouse competition. Perched atop an impressive

With a large, open indoor dining space, posh cocktail lounge, private

outcropping of ancient granite boulders that affords 50-mile views from countless vantage points, this warm, luxurious dining and entertainment space showcases a decidedly modern and inspired take on classic Hill Country architecture.

A

dining areas, spacious patio dining, the energized pool cabana space and lush great lawn all overlooking the 18th greens of the Apple Rock and Rock courses, the Horseshoe Bay staff says this area is already one of the most popular gathering spaces on the entire private 7,000-acre resort footprint.

s in years’ past, Golf Inc.’s competition identifies the best new and remodeled clubhouses at golf courses around the globe based on efficiency, aesthetics, vision and

sustainability. “It’s a tremendous honor to have our Cap Rock clubhouse village recognized as Golf Inc.’s Clubhouse of the Year,” says managing director Bryan Woodward. “Our members still marvel at the way the design fits into the dramatic setting and showcases the panoramic views of Lake LBJ and the surrounding Texas Hill Country. This will be a special gathering place and a great source of pride for multiple generations of Horseshoe Bay Resort members.”

The new Cap Rock Clubhouse amenities are open to Horseshoe Bay

The stylish, contemporary clubhouse building, designed by Dallas, TX architecture firm Three: Living Architecture and

Resort members.

constructed by Mycon General Contractors (also based in

Call 877-611-0112 or visit www.hsbresort.com for more information.

Dallas), services the resort and club’s acclaimed Ram Rock and

23

[Savvy Sponsor ]

KOHUTEK CABINETS

B

Anika and Brad Kohutek

rad Kohutek is a third-generation carpenter. He learned from his father, who learned from his father the demanding life and the ups and downs of a construction worker. Kohutek and his father had a cabinet shop in

Kohutek has a well-trained, reliable team of 14. The shop

Arkansas where he began to acquire the skills of the trade.

foreman has been with them for 18 years; the install manager, 15, and the shortest tenure of any employee is three years.

Typically, when a builder meets Brad and gives his shop a few jobs, they rarely leave. Kohutek brings a wealth of construction

“Brad started Kohutek Cabinets in Marble Falls in 1998,”

knowledge to each project and brings an extra pair of eyes on-

says Anika Kohutek, Brad’s wife and business partner. “At

site, often pointing out issues that could be problematic to the

that time, he did all his cabinet drawings by hand; nothing

builder later.

was computer-generated. Cabinet drawing is a true art.”

“Brad brings solutions to the table,” Anika continues. “He doesn’t just point out what is obvious to him but offers solutions that

In 2004 the company moved to its current location of 200 RR 2831 in

the builder may not have been aware of. He becomes a trusted

Horseshoe Bay, near the Blue Lake subdivision. Kohutek runs a fully

partner to all the builders he works with.”

custom cabinet company. They build 100% of their product…the boxes,

The Kohuteks have five daughters, one son, and two

doors, and trim. And all cabinets are finished out with Blum hardware,

grandchildren. They are active in the Hill Country Builders

a high-end, very durable hardware line.

Association, BNI Elevated Connections Chapter and support the

“And all of our installers are carpenters and can modify the cabinets

local Boys & Girls Club.

on-site if need be,” Anika added. “This gives us the ability to be

For more information on Kohutek Cabinets, or to get a proposal

extremely flexible to the many changes that often occur at the job site.

from them, call Anika at 512.949.7000.

“We are a learning facility here. Brad loves to bring in young adults and teach them a trade. He loves to teach and loves to support the youth who want to learn. We teach and promote from within. A person can grow internally with us or grow within the construction field after spending some time with us.”

Anika’s family moved here from Germany in 1982. Her family was into Appliances and Audio/Video sales. Anika’s parents (Connie and Detleff) founded C&D Appliances and sold the business to the Herrings in 1994. She’s worked in appliances and plumbing distribution for 25 years and joined her husband full-time in the custom cabinet business three years ago. Anika handles all builder accounts, customer relations, employee-related issues, office procedures, and generally anything that needs fixing outside of cabinet construction.

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Kohutek Construc�on INC designs, builds, and installs premium custom cabinets throughout Central Texas.

Anika@Kohutekconst.com

512.949.7000

WILLIAMSON

ROOFING

At Williamson Roofing we want to do everything possible to build long-term relationships with our clients. We are committed to providing our clients with quality workmanship and products. Our goal at Williamson Roofing is to give you a long-lasting final project. We keep an open communication throughout your project to help the process go smoothly. We install metal, tile, shingles, gutters, chimney shrouds, metal wall panels, and custom sheet metal, along with just about anything else made of metal for the outside of your home or out-buildings. If you’re looking for a roofing company that you can trust, let Williamson Roofing be your go-to source. Send us your plans and we will work hard to exceed your expectations no matter how difficult the job.

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RICHARD WESTON

830.798.4371 Richard@WilliamsonRoofing.com

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[HCBA 2021 Parade of Homes]

WHAT AN AWESOME PARADE IT WAS!

By Melissa Eckert, HCBA Executive Officer

C

olby Duke (Parade of Homes Chair) and I want to send the warmest thank you to everyone

involved with this year’s Parade of Homes. This year’s tour consisted of eight gorgeous homes spanning from the Marble Falls area all the way to Fredericksburg. Whether our visitors were wanting renovation ideas, learn about our builders or just experience Hill Country Living, this Parade had it all! We are grateful for each of our builders that worked day in and day out to complete projects, prepare homes for hundreds of visitors and staff the homes throughout the parade.

Additionally, thank you to our sponsors!

We would not have been able to put on this successful tour without you. Your consistent generosity enables us to make our event better each year.

Lastly, we want to thank the HCBA Executive Board. We appreciate their support and leadership, not only for the Parade, but every other HCBA Event as well.

We have learned so much this year and will continue to reach for the next level.

We cannot wait for a bigger and better future for the HCBA Parade of Homes.

John Winsoborough (l-r), Melissa Eckhert, Matt Winsborough

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AWARDS Best Kitchen & Living Area $500k-999k – 10 Design Build $1 million – $1.9 million 1st Place – Winsborough Construction (Tie) 2nd Place – Lemburg House and Showcase Builders 3rd Place – Brother Sun Builders $2 million or more – 1st Place – Jackson Custom Homes

Best Master Suite – Bath Jeff Jackson (l-r), Melissa Eckert, Heath Jackson

$500k-999k – 10 Design Build $1 million – $1.9 million 1st Place – Winsborough Construction (Tie) 2nd Place – Artisan Creative Homes and Lemburg House

Best Interior Design – Decorating

3rd Place – Showcase Builders

$500k-999k – 1st Place 10 Design Build

$2 million or more – 1st Place – Jackson Custom Homes

$1 million – $1.9 million 1st Place - Lemburg House 2nd Place – Brother Sun Builders 3rd Place – Showcase Builders $2 million or more – 1st Place – Jackson Custom Homes

Best Outdoor Living $500k-999k – 1st Place 10 Design Build $1 million – $1.9 million 1st Place – Winsborough Construction 2nd Place – Showcase Builders 3rd Place – Lemburg House $2 million or more – 1st Place – Jackson Custom Homes

Best Architectural - Elevation $500k-999k – 1st Place 10 Design Build $1 million – $1.9 million (Tie) 1st – Brother Sun Builders and Lemburg House 2nd Place – Winsborough Construction Ben Fuller

3rd Place – Showcase Builders $2 million or more – 1st Place – Jackson Custom Homes

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Best Craftsmanship $500k-999k – 10 Design Build $1 million – $1.9 million 1st Place – Winsborough Construction 2nd Place – Brother Sun Builders (Tie) 3rd Place- Lemburg House and Showcase Builders $2 million or more – 1st Place – Jackson Custom Homes

Best of Parade in the $500k-$999k 10 Design Build

Best of Parade in $1.0 Million-$1.9 Million Winsborough Construction

Best of Parade in $2 Million or More Jackson Custom Homes

Best Overall Home in Parade Jackson Custom Homes Colby Duke

People’s Choice Award Brother Sun Builders

Heath Jackson (l), Jeff Jackson

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John Winsborough (l-r), daughter Madison, and brother Matt Winsborough

Jo Combatti, Rick Nash

BROTHER SUN BUILDERS WIN PEOPLE’S CHOICE AWARD

By Jerome Rugen, CPBD; Delineations

Construction of a Parade Home is always a group effort, and the Brother Sun Builders’ Parade House was no exception. It took months of planning and construction coming together to give you this year’s parade winner of the People’s Choice Award.

I am often asked about my processes when designing a home.

Typically, there are four main considerations: the family’s needs and wants; their budget; the site considerations; and stylization.

Our client has many family gatherings, so I wanted to create a home with a multitude of venues within the house. I worked with the client to ensure room sizes, number of bedrooms, activity rooms and private areas of their home were as they wanted. This, of course, was a process.

Our client was very specific on the style of architecture, and in

Architect Jerome Rugan (l), Ben Pelky

fact did the beautiful interior design work. I knew the home was to be linear in shape as we wanted to maximize the lake views from as many rooms possible. Because of the location of the base flood elevation, the house needed to be raised. I designed

My heartfelt congratulations and gratitude go to Larry and Sue Schwarz,

the house to be on a pedestal, which provided a grand look to

Ben Pelky and Rachael Briant at Brother Sun Builders for ensuring the

the exterior elevations, especially the front.

quality, details and vision came to life.

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[Professional Builders’ Secrets] from the Association of Professional Builders

BOOKED OUT FOR 18 MONTHS? CASH FLOW LOOKING GOOD?

Y

ou might be thinking, in all your years in business, things have never looked better than they appear right now. You’ve never been busier. However, below the surface, there could be a disease growing inside your building company. And

with every week that passes, it could get bigger, feeding off the constant price increases and the delays which are destroying the net profit on your projects and eating away at the equity you have built up over the years in your building company.

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You may be too busy to notice what’s going on because

When the music stops, a lot of building companies will not have the

you’re spending all your time chasing deliveries, rescheduling

cash available to cover the hidden liability in their accounts. Builders

subcontractors, and dealing with clients demanding to know

need to take action right now before it’s too late.

when their home will be finished, or even started. On the surface,

Does that sound far-fetched? Surely it couldn’t happen again?

everything looks rosy because you have excess cash in the bank. But

As Mark Twain said, “History may not repeat itself, but it certainly

without retained net profit, every job becomes a liability.

rhymes. ” And the quote from George Santayana reminds us, “Those

According to a study by the Association of Professional Builders,

who do not learn from history are doomed to repeat it.”

between 40 to 60% of residential home builders are not making a net profit on their projects due to rising costs and delays. And while material prices may have peaked, the worst is still yet to come as the inevitable interest rate rises come into play, driving up the cost

ABP’s annual State of Residential Construction Industry survey

of labor as employees and subcontractors struggle to pay their

provides high-level information and data for the residential

mortgages as well as cover the cost of the weekly shopping bill.

construction industry across five countries including the United

So, what can you do about it? After all, macroeconomic events are

States and Canada, from industry insights and benchmarks to

out of anyone’s control so all people can really do is carry on, keep

forecasts for 2022. When you take part in the comprehensive

their heads down, and wait until what will be, will be—right? Our

survey, a PDF copy of the finalized report will be delivered straight

prediction is that those builders who do nothing, like the vast majority

to your email as soon as it’s published.

of residential home builders have been doing since April 2021, will find themselves in a hole that is too deep to climb out of when the dust settles.

COVID-19 presented the owners of residential building companies with a golden opportunity to take a giant step forward. Demand has far outpaced supply placing building companies in a position of strength never experienced before. However, rather than using that

Scan here to take part in the

opportunity to increase their margins and put on more resources to

ABP State of Residential

streamline their operations through systemization, most builders

Construction Industry survey

have carried on doing the same things while expecting a different end result.

Officially, the inflation rate stands at 5.4% in the United States.

However, every residential building company owner knows that the inflation rate does not correlate with what is happening in the

This article is supplied, courtesy of the Association of Professional

construction industry. According to the Bureau of Labor Statistics

Builders (APB), a business coaching service for custom home

Producer Price Index, the average price of goods used as inputs to

builders in the United States, Australia, New Zealand, and Canada.

residential construction has risen 13.2% year to date as of October.

APB provides tested and proven systems for builders to scale and

It’s important to know what’s really going on behind closed doors of

succeed, based on data, experience, and results. Building Savvy’s

independent residential building companies because when you know

new series of articles and education seminars will glean from APB’s

how to benchmark yourself against competitors, you can implement

vast library of coaching curriculum, and the expertise and experience

the systems and processes that will put your company ahead. A

of the APB team. Topics will range from construction business

“work in progress” (WIP) adjustment is the only accurate way to

coaching to sales training, marketing insights, and financial coaching.

reflect the amount of profit you’re earning and then increase the

The goal is to share ideas on how to create a systemized residential

accuracy of the statement by adjusting income up or down based on

building company to generate more leads, earn more money for your

whether you are ahead or behind with the billing.

services, and deliver a better client experience.

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