The Home Builder - September 2024
VOLUME LXX
No. 12
December 2023
Industry Investors McSAM Awards makes official Call for Entries in December
The 2024 McSAM Awards presented will be held on Saturday, April 20, at the Statler Hotel. The official call for en - tries will be announced Dec. 4 Visit McSAMAwards.com for details. Entry applications and materials will be due March 11. This year’s awards show will include 84 categories and two People’s Choice Awards: Community of the Year and Builder of the Year. Again this year, several categories previously exclu- sive to the ARC Awards, are included in the McSAM line up. These include categories for custom builders: Best Interior Design, Best Kitchen, Best Architectural Design - Modern, Traditional and Tran- sitional and Custom Builder of the Year. Four remodeling categories are also included: Best Addition; Best Kitchen Remodel; Best Bathroom Remodel; and Best Whole House Remodel. Other awards categories will be in the areas of Profes - sional Achievement; Market- ing, Advertising, Signage, Online; Interior Merchandis- ing; Design, Home/Builder/ Developer and Community of the Year. Sales Achievement Awards, which are non-judged volume-based recognitions, will be made in four dollar volume categories ranging from $5 million to over $35 million. A variety of partnership opportunities are available, Market directly to deci-
sion makers including vol- ume builder CEOs, division presidents, custom builders, remodelers, architects, bro- kers, builders, developers, interior designers and sales and marketing professionals. Contact Dallas BA Ex- ecutive Officer Gena Godinez, 214-615-5012, if you are
interested in partnering. Last year more than 430 entries were submitted, and attendance at the awards gala was almost 500. The McSAM Awards were created in 1979 by the Sales and Marketing Council of the Dallas BA in recogni - tion of sales and marketing
excellence.
The prestigious McSAM Award is given to both volume and custom builders, remodel- ers, developers and associates who have made a significant and creative contribution in residential marketing through specific achievements during the past 12 months.
BRIEFLY
Learn how Dallas BA membership can ben- efit your business at the Dec. 5 New Mem - ber Welcome Breakfast hosted by StrucSure Home Warranty. Held at Association offices in Plano, this free event will provide valuable in - formation for both new members and veterans alike. RSVP . n n n The Dallas Division’s Dec. 7 lunch meeting at Maggiano’s NorthPark will feature Fred Balda, president of Hillwood Communities. RSVP . n n n Join the Young Profes - sionals Council Dec. 13 for an end-of-year happy hour presented by SiEnergy. It begins at 5:30 p.m. at Side - car Social in Addison. This event is free for members within the Young Professionals demographic (age 40 and under). Others are welcome but will be charged a fee. RSVP .
THE HOME BUILDER
December 2023
Page Two
‘Tis the Season to Stay Aware and Get Involved The HomeFront Government Affairs News and Info As we head towards 2024, there are a few regulatory and political items to keep in mind.
David Lehde Director of Government Affairs
regulatory requirements mandating the dedication of land to cities for a park, without reimbursement. These include a fee-in-lieu option, and some include an additional park development fee. Obviously, there are more appropriate mechanisms to fund parks. Here are some provisions that you should look for to ensure there is a balanced approach as possible to a cur- rent or proposed parkland dedication ordinance you may be facing. First and foremost, a city’s regu - lation for calculation of the parkland dedication must be roughly propor- tional to the increased demand that the residential development puts on the city’s park system. Much like an impact fee, the dedication and fee-in-lieu payment assessments cannot be arbitrary. Some cities will attempt to meet the standard by assuming that the new residents’ de- mands on the park system will require the same amount of service as existing residents. In that case, the calculation should include a measurement of the existing level of service. Another key provision is for the ordinance to make use of what is known as the nexus principle. Fees must be used in a manner that benefits the new residential development. Un- less it is a small city, the reasonable expectation is that the city be divided into zones or districts. The fees paid on behalf of a new development should be spent in the nexus zone or district of development that paid them. Similar to the benefit expectation of nexus zones is the time a city has to expend the fees. The new parks and park amenities should be available to the homes within a reasonable time. City park dedication ordinances should specify a time for fees to be spent, as well as a fee refund policy.
Equally important is the need for the ordinance to offer credits for private parks and recreation ameni- ties. As the claimed purpose of these ordinances is that the dedication or fee-in-lieu is needed to address that additional use of park service result - ing from new development, then it is difficult for a city to claim that the exaction or fee required by its ordi - nance is proportional to demand if the city is not offering credits for private parks and amenities that are reducing the need for that park service, as well reducing the city’s need for funds to maintain the park. Other helpful provisions include crediting the dedication of land to be counted towards a development’s assessed tree mitigation and density incentives for those developments of - fering larger dedications. Development ordinances should take into consideration any loss of de - velopable lots and the additional costs that will be paid by the home buyer. It’s Election Season … Again 2024 is a big election year, and some openings at the top could impact who the decision makers are all the way down to city hall. Two legislators, one federal and one state, that have held a firm under - standing of the need for a regulatory environment that is considerate of housing have announced they won’t seek re-election for their current of - fices. U.S. Congressman Michael Bur- gess, M.D. (TX-26), announced in November that he will retire from of - fice, opening up his seat for the 2024 election season. State Senator Drew Springer, (SD-30) announced his intention to not seek re-election as well. We appreciate
the work of both gentlemen.
As both districts have overlap and have significant portions inside the Dallas BA service area, it could have a domino effect. Not only will the industry need to be aware of the views of the candidates for those offices, but also keep in mind that elected seats in the Texas House, as well as area county commissioner courts and city councils, could see movement if any of those officials decide to serve in a new and open capacity. Filing for the 2024 primaries will close on Dec. 13. Just as soon as the primary season gets heated, the elec- tion process for city council seats in multiple area cities will begin, with Spring municipal elections being held in May. This is all in addition to what will likely be a dramatic Presidential election. The Association will monitor all of this closely. But your help is still needed. HOMEPAC of Greater Dallas, the political action committee for members of the Dallas BA, has opened registra - tion for its 2024 cycle. HOMEPAC of Greater Dallas helps support pro- housing candidates and incumbents for key city, county, and selected state level offices. Members interested in partici- pating should contact the Director of Government Affairs or visit https:// dallasbuilders.org/advocacy/. He Sees You When You’re Attending Want to impress our Dallas BA President? Join us at our Dec. 14 Gov - ernment Relations Committee meeting, which begins at 9 a.m. at Dallas BA offices. It is open to all Association members. For more information, contact the Director of Government Affairs .
The Eve of Development Codes Municipalities are still reacting to a busy year in the state legislature, and “interpretation” of new state laws will continue to come into play. This means development codes could see interesting proposals as cities consider updates. The City of Dallas is in the early process of updating its development code. The city hired a consultant who is holding stakeholder interviews with the stated goal of gaining insight into the land use and development environ- ment in Dallas. The interviews are a preliminary step in the process that the city’s con- sultant will use to gather information and context regarding zoning and development, likely followed by the proposal and drafting of code amend - ments. While the process in Dallas is looking at the development code and zoning across the board, other cit - ies continue to update parts of their regulations regarding land use and development. One such item we urge our mem- bers to be on the lookout for is any update to municipal parkland dedica- tion ordinances. If you hear of a mu - nicipality considering changes, please contact the Dallas BA. The home building industry is not opposed to the responsible develop- ment of parks. In fact, there are parks in the City of Dallas, for example, that were contributions of the nearby residential development. These parks were developed long before any talk of park dedication ordi - nances. Park dedication ordinances are
METROPLEX DESIGN SOURCE FOR EXCITING, INNOVATIVE RESIDENTIAL PLANS 972-783-4660
The Home Builder is published monthly by the Dallas Builders Association at 5816 W. Plano Pkwy., Plano, Texas 75093. Telephone 972-931-4840. BARCIE VILCHES, Editor
THE HOME BUILDER
THE HOME BUILDER
December 2023
Page Four
Upcoming Class: December
Presented by
Best Practices for Flooring Prepa- ration and Installation: Building a Better House Series - Dec. 6 Expert Timothy K McCool, National Wood Flooring Certified Wood Flooring Inspector, will share his knowledge and flooring practices in this hybrid class. Topics will include: n Luxury Vinyl Plank and Tile; n Solid Wood Flooring; and n Engineered Wood Flooring. In each segment, the class will cover Jobsite Readiness, Jobsite Inspection, Moisture Testing, Ac- climation Requirements, Substrate Recommendations, Installation Rec- ommendations, Expansion Space Needed and Common Problems seen during an Inspection. Instructor: Timothy K McCool, Na- tional Wood Flooring Certified Wood Flooring Inspector, Luxury Vinyl Products Inspector, certified by IFCII (Institute for Floor Covering Inspec - tors International), Laminate Flooring Inspector, Certified by North American You've still got time to place an ad in the new membership directory Don't be left out of the 2024 Membership Directory, which will be mailed to all members in late January. The Association is again work - ing with E&M Consulting, who manages ad sales. Please give E&M a moment of your time when they contact you about advertising opportunities. This gives you the chance to promote your business while supporting the Dallas BA. Ad sales will be wrapped up soon. A copy of the 2024 Rate Sheet can be found HERE.
Laminate Flooring Association. Time: 10 a.m. to 1 p.m. Cost: $35 Member/ $45 Non- Member Register for Flooring Class.
THE HOME BUILDER
December 2023
THE HOME BUILDER
Page Six
Building industry experts Phil Crone, James Tobin: Solve housing crisis with more supply
Everything is Better in Texas There’s no doubt that demand ex- ists, so a suitable solution, Crone said, is to provide more supply. “We can fix it by building more homes,” he said. “That’s what we do. That’s what needs to happen. It’s easier said than done.” The U.S. is short about 4 million homes, he added. The National As- sociation of Realtors reports that the country is experiencing the lowest supply of single-family homes since 1982 when the NAR began tracking such data. “You should be able to build your way out of it, but it’s not easy,” he said. Americans need an annual in- come of about $115,000 per year to afford a median-priced home, which is about $40,000 more than a typical household earns, Crone said. Crone explained that some of the greatest challenges exist for home builders in California where wildfires are rampant; in Nevada, where illegal practices were commonplace for de - cades; and in Arizona, where water resources are scarce. Climate-related legislation has been aggressive out of Washington, D.C., without much consideration given to the impact on housing afford - ability, Crone explained.
EDITOR’S NOTE: THIS ARTICLE IS PUBLISHED WITH PERMISSION FROM CANDY’S DIRT . By April Towery Texas builders are in the best housing market in the country, and while it’s far from perfect, other states have it a lot worse, Leading Builders of America Vice President Phil Crone told a crowd at Dallas Builders Asso- ciation’s State of the Industry Summit. The event was presented Nov. 9 in partnership with Hotchkiss Insur- ance Agency. James Hardie Building Products served as breakfast partner. Crone, who previously served as executive officer of the Dallas BA, joined National Association of Home Builders president and CEO James Tobin for a discussion on how federal regulations are impacting home build- ing and development. The Federal Reserve pushed to drop inflation to 2 percent about a year ago and warned home builders that it was going to hurt, Crone said. “They thought that with the in- flationary attack, they were going to break the consumer,” he said. “What happened was they broke the transac- tion. When you think about it, prices are still high. Supply is as low as it’s ever been. It’s rough out there.”
“The takeaway here is you’re still, for a lot of reasons, in the best market in the country and in as good of a situation as you could possibly have,” he said. “There’s plenty of things to be worried about and plenty of things to complain about … It’s all
April Towery Candy’s Dirt
From left: Speaker Phil Crone, Leading Builders of America; Title Part- ner Jessica Goehring, Hotchkiss Insurance Agency; Dallas BA Presi- dent Adam Lingenfelter; Breakfast Partner Tyler Brown, James Hardie Building Products; and Speaker James Tobin, NAHB
relative. You’ve got to realize, that like a lot of things in life, other people have it worse and in the housing industry, just about everybody else does in terms of the challenges we’re dealing with.” National Association of Home Builders Tobin, a “recovering lobbyist” whose office with NAHB is based in the nation’s capital, said a tough conversation is taking place at the
national level about how to solve the housing crisis. “We’re all trying to build the American dream as affordably and attainably as possible,” he said. The average regulatory burden is over 25 percent for a newly construct - ed single-family home and over 42 percent for multifamily development. “I’ve never met a legislator who is anti-housing, but they really put some barriers up toward achieving that goal,” Tobin said. “They care about housing. They are trying to find a way to make housing more afford - able, but they are trying to solve the problem from the demand side. They want to help people afford an already- expensive product because they don’t want to lower the price.” If more supply is added to the market, prices will be lowered organi- cally, Tobin explained. “We’re looking for the govern - ment to step back and let us do our jobs, which means if you turn the power in this room loose, we will meet the demand in this country for housing in America, plain and simple,” he said. “We are creating a society where only the wealthy can afford to be land - owners in America. We can no longer do that. We’ve got to decide if we want to house everybody or if we just want to house the wealthy. The way we do that is with more supply.”
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THE HOME BUILDER
December 2023
Page Seven
Year End Happy Hour Dec 13 5:30-7:30pm This event is free to attend, but advance reservations are requested. If you are not a member of the Dallas BA or do not fall in the young professional demographic, you may still attend, but there will be a fee collected when registering.
Sidecar Social 5100 Belt Line Rd, Addison, 75254
Partners
THE HOME BUILDER
December 2023
Page Eight
TAB honors members
Texas Association of Builders Executive Director Scott Norman presents Presidential Distinguished Service Awards to (upper left) James Rudnicki with Bush Rudnicki Shelton; (upper right) Rod Vo- chatzer with Kelly-Moore Paint Co; (bottom left) Adam Aschmann with Tilson Homes; and (bottom right) Frank Murphy, Wynne/Jack- son. These awards are given to members who go above and be- yond the call of service for the local and state associations.
972-661-0688 3310 Wiley Post Road Carrollton, TX 75006 info@energyshopinc.com
www.energyshopinc.com “Andersen” and all other marks where denoted are trademarks of Andersen Corporation. ©2023 Andersen Corporation. All rights reserved.
THE HOME BUILDER December 2023 NEW MEMBERS Shane Homes Brenden Montgomery 403-536-2224 BUILDERS - RESIDENTIAL
Page Nine
Jerry Parks becomes Spike Club member Jerry Parks
BUILDERS Atlas Custom Builders Nick Forsell 972-800-8423 BUILDERS - RESIDENTIAL AB-TX Construction Julio Quiroz 682-325-2070 BUILDERS - REMODELER Spike: Tony Paez, DFW Design and Build, LLC Clark Custom Homes Cody Clark 214-766-7367 BUILDERS - RESIDENTIAL Jewel Homes Robert Brown 214-876-3115 BUILDERS - RESIDENTIAL Rhino Residential, LLC Ken Higginson 303-550-9907 BUILDERS - RESIDENTIAL Shane Homes Dave Rickett 403-536-2200 BUILDERS - RESIDENTIAL TX Elite Development LLC Joseph Godinho 319-610-7078 BUILDERS - RESIDENTIAL Milestone Anniversaries 40 Years Stuart Margol Companies 15 Years Bauhaus Modern Homes The Holmes Builders 5 Years Bandera Utility Contractors Bandera Utility Contrac- tors, Inc. - Jeff Hicks Bandera Utility Contrac- tors, Inc. - Jackson Hicks Bandera Utility Contrac- tors - Francisco Ovalle Trophy Signature Homes Builders FirstSource - Paul Evans Milestones Presented by:
SUSTAINING ASSOCIATES Omega Natural Stone Sucharita Reddy 214-660-5393 KITCHEN Spike: Ben Fields, Fields Custom Homes Outpave Zach Ahlstedt 855-935-0100 PROFESSIONAL SERVICES ASSOCIATES DFW Elite Living Joseph Garcia 214-506-0634 REAL ESTATE StruxCo Joshua Palladeno Hamilton 469-461-4001 AUDIO/VIDEO AFFILIATES/ ADDITIONALS DFW Elite Living Cliff Graham 214-675-3755 REAL ESTATE Lingenfelter Luxury Homes Lisa Lingenfelter 972-410-4141 BUILDERS - RESIDENTIAL
with Traditional Classic Homes is now an of- ficial member of the prestigious Spike Club after recruiting six new members. Contact Director of Membership Coleman Yates for information on the NAHB Spike program.
See complete contact information for all Dallas BA members at DallasBuilders.org . Do Business with a fellow member of your Association. Shane Homes Kayt Burrens 403-536-2224 BUILDERS - RESIDENTIAL Shane Homes Shane Wenzel 403-536-2283 BUILDERS - RESIDENTIAL StruxCo Devin Croteau 603-777-2314 AUDIO/VIDEO Tim Jackson Custom Homes LP Shannon Brown 972-562-6623 BUILDERS - RESIDENTIAL
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THE HOME BUILDER December 2023 Andersen Windows hosts sold-out golf tournament at Brookhaven Country Club Page Ten
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