KBC in Metropolitan Builder - August 2014 by Kristian Bell Construction

Greater Houston Edition themetropolitanbuilder.com

Kristian Bell Enjoys Extraordinary Challenges Kristian Bell Construction | Houston, Texas

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PUBLISHER’S NOTE Giselle Bernard Publisher

An Industry Trade Publication | August 2014

For Local Information Contact: themetropolitanbuilder@yahoo.com 832-317-4505 www.themetropolitanbuilder.com

Feature Builder Story

04 Kristian Bell Enjoys

Extraordinary Challenges

5161 San Felipe St. #320 Houston, Texas 77056 832-317-4505

Owner/Publisher Giselle Bernard Editor Kathy Stolz Magazine Layout & Design Graham Goodyear Website www.themetropolitanbuilder.com Printed in the USA Grunwald Printing Co. 1418 Morgan Avenue Corpus Christi, Texas 78404

The Metropolitan Builder is a local trade publication published monthly in an informative and positive manner. Copies are mailed, free of charge, to building professionals throughout the greater Houston area. The opinions and facts expressed in The Metropolitan Builder magazine are those of the authors or columnist and do not necessarily reflect the views of the publisher, nor do they constitute an endorsement of products or services herein. The Metropolitan Builder strives to ensure the accuracy of the magazine’s contents. However, should inaccuracies or omissions occur, we do not assume responsibility. The Metropolitan Builder reserves the right to refuse any advertisement. This publication may not be reproduced, in whole or in part, without the expressed prior written permission of the publisher.

In July I spent a week consoling my sister after she lost her husband on July 4th due to an unexpected massive heart attack while they were on vacation in Montreal, Canada. During tearful, heartfelt grieving, I learned intimate details about their lives and recognized what a blessing it was they had each other for 28 years.

By Kathy Bowen Stolz

06 Contingent Payment Clauses in Residential Construction

Through her loss, I’ve realized, yet again, that life is short and uncertain. It seems that only when we experience a crisis do we seem to learn to appreciate and hold onto what we cherish and often take for granted. A friend recently sent me an e-mail with a couple of phrases that have impacted my life. It prompted me to reflect on what’s really important when it comes to life’s accomplishments.

By Ian P. Faria & Jon Paul Hoelsche

08 Hand the Car Keys to Your Teenager

In times of crisis, whether a terminal illness or the death of a loved one, the only accomplishments that really

matter are the relationships we’ve worked so hard to build. When in need of being consoled, do we surround ourselves with all of the material things we’ve worked hard to purchase, that we thought we needed to make life worth living? No, we look to our loved ones for a warm hug, kind and gentle words of encouragement or a supportive ear. Healthy relationships are the key to a happy, fulfilling life. Relationships, not the material things that so many of us feel we need to be happy, are our greatest accomplishments. They are why I ask you to reflect on life today. Cherish your relationships. Tell your loved ones how much you care for them. Let them know how much they are appreciated and why. Make time for creating wonderful lifelong memories. They’re what life is really all about.

By Burk Moreland

09 NAHB’s BuilderBooks Launches Redesigned Website

13 Dialog With a Designer 16 Houston Housing Picture

Bohlke Consulting Group, LLC

17 Bipartisan Energy Codes Bill a Boon for Consumers

19 Dotzour Highlights Key Factors in Houston’s Economic Growth

By Greg Tomlinson

Proud member of the GHBA, the Texas Association of Builders and the NAHB.

Kristian Bell Enjoys Extraordinary Challenges By Kathy Bowen Stolz | Photography by Kathleen O. Ryan

ouston contractor Kristian Bell loves projects where he gets to be creative, producing unique projects that “push the envelope of design.”

As a renovation expert, Bell enjoys the challenge of unique projects that demand extraordinary skills. “We don’t do facelifts that require some new trim and a coat of paint.” In fact, some of the projects that Kristian Bell Construction renovates teeter on the edge of a teardown, he said. “Sometimes we tear down everything except two or three walls and keep partial foundations. We try to keep the Continued on page 10

Contingent Payment Clauses in Residential Construction

By Ian P. Faria & Jon Paul Hoelscher of Coats | Rose | Yale | Ryman | Lee, A Professional Corporation

Contingent payment clauses, also known as “pay if paid” clauses, can be a powerful tool for the builder or general contractor. Subcontractors should be aware of these clauses because they can affect timing of payment and cash flow issues and also these contract provisions can often get in the way of asserting lien rights. Typically, the contingent payment provision provides that the builder/general contractors will not have to pay their subcontractors until the builder is paid by the homeowner. In 2007, the Texas Legislature passed legislation placing significant restrictions on a contractor’s (and other construction parties’) right to rely upon contingent payment clauses. However, like the 2011 indemnity legislation, 2007 contingent payment legislation was drafted so that it expressly did not apply to a contract that is solely for improvements to or the construction of a structure that is a detached single-family residence, duplex, triplex or quadruplex. Thus, the contingent payment clause is alive and well in residential construction.

provision for longer than a reasonable time period. Also, the contractor and subcontractor’s lien rights could be affected by reliance on a contingent payment provision. For residential construction projects, the timing to serve lien notices is accelerated, and waiting more than 30 days to be paid under a contingent payment clause could put the subcontractor in a bind to get the required notice of intent to file a lien sent to the homeowner and contractor. Thus, subcontractors need to keep these timetables in mind during their project to ensure they protect their rights by making timely demands for payment as well as timely notice of lien rights pursuant to statute.

Contract provisions must be drafted and read carefully to fully understand their effect and application under the law. As always, contractors and subcontractors should consult their contracts and the various statutes applicable to residential construction projects to fully understand their rights and duties under the law and ensure that they make their payments or demands for payment timely. Ian P. Faria is a director at Coats | Rose in its Houston office. He is a member of the firm’s construction/surety, real estate and litigation sections. He was selected as a Texas Super Lawyer “Rising Star” by Texas Monthly (2012 & 2013), an honor conferred upon only 2.5 percent of the total lawyers in Texas. Jon Paul Hoelscher is an associate attorney in the Houston office of Coats | Rose. He is a member of the firm’s construction and litigation sections. He was selected as a Texas Super Lawyer “Rising Star” by Texas Monthly (since 2012), an honor conferred upon only 2.5 percent of the total lawyers in Texas.

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Contingent payment clauses can be a powerful resource for the general contractor or builder since some homeowners can be less than reasonable in their demands and may refuse to pay the general contractor based on minor defects or project issues. In these situations, the contractor will want to rely upon a strong, enforceable contingent payment clause to avoid having to pay his/ her subcontractors prior to receiving funds from the homeowner. For the contingent payment clause to be enforceable, the contractor must ensure the clause clearly makes payment from the owner an express condition precedent to payment by the contractor, thus explicitly shifting the risk of nonpayment by the owner to the subcontractor. Subcontractors providing work under contracts that have contingent payment clauses should be mindful of what these provisions require. Depending on the wording of the contract, a contractor cannot rely upon the contract 06

Trey Magee

South Texas Brick & Stone, LLC cell (713) 299-8893 office (281) 759-3100 fax (281) 759-3101 tmagee8@comcast.net

14110 Katy Freeway Houston, Texas 77079-1032 Showroom 8715 A Katy Freeway

www.SouthTexasBrick.com 07

Hand the Car Keys to Your Teenager By Burk Moreland

Several of my clients are experiencing a sharp growth curve, having increased their business by about 50 percent. Sounds great, right? It is, but business growth comes with its own set of issues and challenges. ·When do I hire help? ·How do I deliver on the promise of maintaining my standards with all this new responsibility? ·How do I maintain this pace or, better yet, grow even more? There are answers to each of these concerns. The one I want to focus on, however, is the one answer that applies to all of the questions: Develop your people. As a small business owner, you likely wear multiple hats. You are the accounting, sales, marketing, operations and every other department all at once. As you grow, you must hand off responsibility for some or all of these functions to other people, so that you are able to take on the new tasks necessary to move your business forward. Develop your team in a way that raises everyone’s confidence and trust that the work will be done with the same level of competence and dedication as when you were doing it. As work progresses or is completed, staff can report back on results and make adjustments if necessary. Does this delegation make you feel a bit like handing the car keys to your teenager? That’s okay. Start slowly and purposefully. Here are a few tips to get started: 1. Introduce more responsibility with each decision to get a clear understanding of how your employees think. This gradual increase gives you the opportunity to bridge the gap from how the employees may think about a task or problem and how you need them to think about it. Later, they can operate nearly autonomously, except for very big decisions. 2. Exhibit persistence and patience. Persistence and patience are hallmarks of the process. 08

The goal is the development of trust between manager and team member, which allows both parties to advance in a relatively safe environment. Delegation is not an exact science. Trial and error are par for the course, so allowing space to make (and correct) mistakes is vital to your success. Over time your staff will develop into dependable team members who can easily act appropriately, with confidence and integrity on your behalf, without having to come to you constantly with questions. As an added bonus, giving team members more responsibility in this way is great for morale because expectations are clear as they grow in knowledge and ability. 3. Guide the vision for the team members to follow.

NAHB’s BuilderBooks Launches Redesigned Website BuilderBooks, the book publishing arm of the National Association of Home Builders (NAHB), revealed its newly redesigned website, www.BuilderBooks.com in early July.

In addition to the site improvements, BuilderBooks continues to offer a variety of attractive services and discounts: · Bulk Purchasing Discounts—Customers can make bulk purchase to receive even larger discounts. They also can customize the resources with their company logo by calling 800-368-5242, ext. 8205.

With smart delegating, your company moves forward, thanks to contributions by everyone with limited stress and turmoil.

· eDocs—BuilderBooks offers access to a variety of forms and checklists available for download.

Leading the transformation of companies from good to exceptional is Burk Moreland’s trademark. As an executive coach, Burk’s clients are expected to and have experienced measureable return on investment, increased productivity, and up to 200 percent revenue growth. Recognized as one of the Top 40 under 40 by the Houston Business Journal, he is a highly successful entrepreneur with over two decades in the homebuilding industry, a trainer for the National Association of Home Builders and a gifted coach and mentor to businesspeople in a variety of fields. Burk currently resides in Evergreen, Colorado, with his wife and two daughters. Burk can be reached at 832-687-0329.

· “Cost of Doing Business Study, 2014 Edition” · “Jobsite Safety Handbook, English-Spanish”

The site recently underwent a makeover to improve its look, feel and functionality. The revamped site offers easy-to-navigate access to all of the BuilderBooks titles, as well as an improved search function. Other new features include mobile capability, the ability to compare products, social media tools like “Share with a Friend” and wish lists.

Imagine having a smart plan for developing people in your organization with a few extra hours per day to work on something bigger/better and a team that is highperforming and happy.

Click here to download my free eBook on the 7 Degrees of Delegation, a powerful tool you can start using today.

· “Social Media 3.0: It’s Easier Than You Think”

· “Residential Construction Performance Guidelines, Contractor Reference, 4th Edition” · “2012 ICC-700 National Green Building Standard™” · “What Home Buyers Really Want” BuilderBooks is accessible 24 hours at www.BuilderBooks.com or by calling 800-223-2665 Monday - Friday, 8 a.m. - 6 p.m. (ET).

· eBooks—Several popular BuilderBooks publications are available and can be saved to a PC, iPad or Android device or viewed and read online. eBooks are available at ebooks.builderbooks.com. · NAHB Members Save 10 percent—Members save 10 percent on every item, everyday (member price). BuilderBooks produces products and publications which have been specifically created to help housing professionals streamline their daily operations, better serve their new and existing customers, develop new strategies to safeguard their jobsites and, ultimately, build and sell more homes. Some of the industry’s best resources are published by BuilderBooks:

Continued from page 5

integrity of the neighborhoods, but our work is based on the customer’s desire.” Most of his company’s remodeling and renovation projects are in the Memorial section of Houston. Although most of the houses were originally constructed in the 1950s and 60s, the homes remain in demand because of the location and the school district’s reputation. Homeowners choose Kristian Bell Construction for their renovations – some costing more than a half million dollars – to recreate their vision of a dream home. “Every single project is completely different. I don’t like to put my customers in boxes which limit them on what is possible.” Bell uses subcontractors that share his passion for

During those first six years in business he was a minor league baseball pitcher with custom design/building as a hobby in the off –season. He always knew he would end up working in construction and was planning for the transition when his baseball career was over.

creating unique spaces. “I’ve got nine immediate trades that I keep busy on the five or six projects we have underway at any time. They include master carpenters, master framers and several ‘jack-of-all-trades’ guys. “I can consistently guarantee my product because I use the same subs over and over. The product is based on the trades’ abilities. I’ve had several of them since Day 1 [of my business]. They stay with me because they like my crazy ideas that challenge them.” Bell said he has an amazing team, both in the office and in the field. “It takes the entire team to pull off these great products.”

Kristian had grown up on construction job sites, tagging along with his father, who is a contractor with 40 years of experience. He learned the ins and outs, the good and bad from watching his dad build his own companies. But before beginning his construction career, he had to follow his dream of becoming a professional ball player. That dream was becoming a reality when he was drafted by the Toronto Blue Jays in the 11th round of the 2004 Major League Baseball Draft.

Bell has built his business on word-of-mouth recommendations, only recently creating a website after ten years. For the first six years he worked alongside his childhood best friend, Brandon Redgrave, focusing on small remodeling and building projects to refine his carpentry skills. Kristian originally called his business

He played in New York, Michigan, and Florida for four seasons before he was traded to the Oakland Athletics for Marco Scatoro in 2007, going on to play for the Stockton, Calif., and Midland, Texas, AA teams. His six-season record was 20 wins and 20 losses with an ERA of 4.76. (Three of those seasons he was plagued by injuries, which led to a shoulder surgery.) One February day during the off-season, a miscalculation with a table saw ended Bell’s pitching career. Slicing off his right index finger was truly a life-changing event for this right-handed pitcher. “I took it [the accident] in stride. I recognized baseball was finally over. I didn’t expect to be a 20-year veteran pitcher, because too much can happen. In fact, I was in rehab at the time from my shoulder injury. “I started my company, KCC Contracting, two weeks later. I had planned my future while I was playing, and I knew where it would go after baseball. It was an easy transition to contracting.” “Baseball taught me a tremendous amount about the business side of an operation. I had observed the internal operations of each team, and I acquired a tremendous amount of knowledge on business management methods and the effectiveness of working as a team.”

Krazy Custom Creations. “I love doing one-of-a-kind projects, and people love looking at my work on-line, from what I hear. I built my business primarily through my personal Facebook postings. I’m a self-taught master carpenter who has a God-given gift for design.”

“My company’s reputation is everything to me...”

Bell said, “I have worked hard to build my company into what it is today. The company has continuously grown from year to year based on my unique portfolio.” He added, “My company’s reputation is everything to me, and I stand 100 percent behind each and every product. 11

Kristian looks at projects as a four-quarter game of chaos. In the first quarter everybody is optimistic and happy as the transformation begins with demolition. In the second quarter the customer must make a lot of decisions, which builds stress. In the third quarter there is almost always some sort of conflict because the customer can’t see the finish line, even though it is right around the corner. In the fourth quarter the customer is relieved to see the pretty finishes, and the end is finally in sight.

Last year I changed the company name to Kristian Bell Construction to underscore how I stand behind my product.” Not only concerned about his company’s reputation, Kristian hopes to transform the contracting process. “People don’t think ‘integrity’ when they think of contractors. We are viewed in a negative light because many contractors cut corners to maximize profit or because miscommunication on job sites kills the precious relationship between client and contractor. Then, the bad experience gets relayed to others. Everyone probably knows someone who has had a negative runin with a contractor, which creates a lack of trust when homeowners get introduced to one. This is what I want to change. “I want my company to represent a standard for quality work through integrity, honesty and professionalism. My company is different. I am willing to lose profit to make sure things are done the right way.” Many in the construction world avoid remodeling and renovating projects because new construction is much easier, Bell noted, and the interaction with the clients is much different. Conflicts can arise naturally between the contractor and the client during the remodeling/renovation process, especially if the clients are living in their homes, because the paint fumes, dust and overall mess that come with the job can make living in the home a nightmare. “Every customer is unique in how they handle the upset of remodeling.”

“Before we start the massive undertaking of an extreme remodel, I explain to the customers that respect should be the most important thing to keep in the forefront of our interactions. Throughout the long process, I try to keep everyone involved free of stress, regardless of the possible bumps and mishaps down the road on the journey to their dream home.” Kristian is there to make the homeowner happy. “I love connecting with good people. It is gratifying to see the smiles on people’s faces, along with their appreciation, when they see the finished project. I want them to be proud of what they paid for. His five-year plan is to expand to doing high-end custom homes while continuing to do renovation projects. He would like to do more commercial projects as well. He would also like to develop some property rather than just build on customers’ lots. No matter the job, Kristian Bell will continue to look for projects where he can push the envelope. Is the envelope ready? “Kristian Bell Construction is an elite company based in the Memorial Area of Houston specializing in new home construction and high end home renovations. Kristian Bell has been building his team since day one, grooming them into the quality tradesmen he still has today, allowing for a consistent high quality product. His team is instilled with the same high expectations of quality workmanship, work ethics, and integrity that are the founding principles of the company. Extensive knowledge and creativity offers clients beautiful and sophisticated solutions that match both budget and lifestyle. With family resources in construction and carpentry extending over 80 years and an in house design team with over 25 years design experience, Kristian Bell Construction is prepared to take you from the beginning design phases to a finished home. “

DIALOGUE WITH A DESIGNER

INTERVIEW WITH SUSAN FRUIT ASID, CGR, CAPS

This month we sat down with interior designer Susan Fruit ASID, CGR, CAPS to learn more about her interior design and home renovation company, Susan Fruit Interiors. Susan has a unique combination of business credentials in that in addition to being an experienced, licensed ASID interior designer for 39 years, she is also a certified graduate remodeling contractor (CGR) and a certified aging-in-place specialist (CAPS). She also teaches interior design classes to the public at The Womens Institute and St. Martin’s Episcopal Church and she offers Design-On-The-Go Bus Tours several times a year to interesting design resources around Houston.

architecture. MB: How has the field of interior design changed since you graduated? SF: It is like night and day. When I was in design

MB: Susan, what motivated you to become an interior designer? SF: My mother was a gifted, self taught interior decorator, so growing up under her tutelage, I knew from a very early age that I wanted to be an interior designer. With this clear goal in mind, I went to Purdue University and majored in interior design with a minor in landscape 13

school, all drafting and sketching was done by hand. CAD (computer aided drafting) came along years after I graduated as well as courses in lighting design, kitchen and bath design, universal design, etc. In my day, the fine arts, fabrics and textile design, furniture history and residential design studio courses were the staples in the curriculum. Today, interior design curriculums revolve around numerous CAD courses and commercial design courses. MB: How do you feel about this evolution? SF: I don’t like it. CAD skills are very important and are a must these days, but I find that many new ID graduates are lacking in residential design knowledge and creative problem solving skills for the home. This is unfortunate because the residential design field is where the majority of jobs are today for new interior design graduates.

MB: Speaking of residential design, how can an experienced interior designer help a custom home builder or a remodeling contractor earn more money on their projects or attract higher end clients? SF: It generally takes a team of three industry professionals to build or remodel a quality home; a builder, an architect and an interior designer. A home is typically the largest single investment a person ever makes, so it is important to do it right. So often builders, remodelers and homeowners think they are being wise and saving money by not engaging the services of an interior designer, but this is a false assumption. So much time and money is often wasted on home construction and renovation projects because critical design decisions and selections are not made on time due to homeowners’ indecision, causing last minute rushed decisions which in turn results in poor quality home design. With all the choices available to homeowners today, it is easy for people to become overwhelmed during the selection process and thus become hesitant to make major design decisions that they will have to live with for years to come. Homeowners are very adept at flipping through design magazines and finding design ideas that they like, but the trick is knowing how to pull it all together. It takes years of experience, talent, training and education to know how to coordinate the myriad number of design details (hundreds of them – from the major to the mundane) that go into creating a beautiful, tasteful, quality home from 14

start to finish that will remain attractive and timeless through the years. Experienced interior designers are the professionals who make this happen and make custom home builders and remodeling contractors’ lives so much easier in the process. Every month interior designers who are actively involved in the local home building and remodeling communities are meeting with industry vendors, attending seminars, webinars, networking events, investing in continuing education courses and additional advanced industry training to be able to advise and offer their clients, builders and remodelers the latest options in design trends, technology and innovation. By taking advantage of their knowledge, talent and design expertise, a home will be far more attractive, sell more quickly and provide greater return on one’s investment than a home built without professional design assistance. MB: How do you begin the design detailing and materials selection process when working with builders and remodelers and their clients? SF: I always begin by thoroughly discussing and establishing the design theme of the home with the clients to make sure that all selections and finishes will coordinate and harmonize with the main theme. This is where things often go awry for homeowners if they are not working with an interior designer. The selection process is much more difficult and time consuming than what it appears. Mouldings and trim details, cabinetry,

countertops, wall paneling, staircase design, fireplace design, windows and doors, flooring, light fixtures, hardware selections and more need to be carefully chosen to coordinate with the main theme so there will be consistency throughout the home. When an interior designer is part of the design team, he or she can take the burden of coordinating and orchestrating the selection process off the shoulders of the builder or remodeler, freeing him or her to concentrate on their numerous other project responsibilities.

To contact Susan, call 713-817-6565 or email her at susan@susanfruitinteriors.com or visit her website at SusanFruitInteriors.com. Her home store, For The Home, is located inside Village Antiques, 1200 Blalock Road, Suite 350, Houston, Texas 77055.

MB: What design books do you recommend? SF: Oh, there are so many out there that I love! However, to narrow it down, a few of my personal faves are the Country French Style books by Charles Faudree (required reading for anyone desiring to have a Country French look), Inspired Interiors by Suzanne Kasler, At Home by Suzanne Rheinstein and An Affair With A House by Bunny Williams. MB: What design magazines do you subscribe to and recommend? SF: I subscribe to many design publications but the ones I eagerly await each month are Architectural Digest, Veranda, Traditional Home and Renovation Style. These wonderful publications feature the latest home fashions and design trends in architecture, landscape design, interior design and home renovation. They inspire me and are a must for anyone thinking about building, remodeling or redecorating their home. MB: What do you do in your spare time? SF: I enjoy spending time with my two grown daughters and their families and especially my two wonderful grandchildren, Dylan and Molly Mae. I also enjoy long nature walks, leisurely lunches with friends and working on my family’s genealogy. MB: Any last thoughts, comments? . . . . SF: An experienced interior designer brings a wealth of product knowledge, talent and expertise to a new home construction or a residential remodeling project and can make a builder’s job so much easier. I strongly encourage all home builders and remodeling contractors to consider hiring an interior design professional for their projects as the long term value that an interior designer brings to a project far outweighs the initial cost. 15

Houston Housing Picture

Bipartisan Energy Codes Bill a Boon for Consumers

Bohlke Consulting Group, LLC Monthly housing permits filed by builders in the Houston Area.

MARKET

Monthly Housing Permits Bipartisan legislation introduced in early July by Reps. Marsha Blackburn (R-Tenn.) and Kurt Schrader (D-Ore.) would help promote savings in commercial buildings and residential homes through the use of more cost-effective energy codes, which set energy efficiency baselines for buildings, according to the National Association of Home Builders (NAHB).

3,000 2,500 2,000 1,500 1,000 500

ANNUAL % CHANGE 9.3%

0 Ma 14 r. 2 Ap 014 r. 2 Ma 014 y2 014

GRAND TOTAL

30,344

33,178

CENTRAL

4,848

5,954

22.8%

FAR NORTH

3,722

4,144

11.3%

NORTHEAST

3,136

3,310

5.5%

NORTHWEST

4,147

4,229

2.0%

SOUTH

1,818

2,023

11.3%

SOUTHEAST

1,067

1,333

24.9%

SOUTHWEST

3,741

3,874

3.6%

W. NORTHWEST

3,118

3,264

4.7%

W. SOUTHWEST

4,740

5,034

6.2%

NOT ID.

Monthly permit activity shows a 6.2% decrease between May 2013 and May 2014. However, there is a 9.3% annual increase in permits for the twelve month period ending May, 2014.

increasingly energy-efficient but not at a pace that the market cannot bear,” said John Floyd, principal of Ole South Properties in Nashville. “Our buyers want to be assured that the additional cost comes with a reasonable payback so they can recoup the money they spent.”

“By requiring that any code or proposal supported by the Department of Energy has a payback of 10 years or less, the bill would allow homeowners to invest in energy-efficient windows, lighting and other features that will significantly reduce their utility bills,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del.

Feb

pt.

13 20

JUNE 12 -MAY 13 JUNE 13 - MAY 14

13 20

013

3,565 2,473 3,372 2,811 2,481 2,693 2,165 2,388 2,298 3,006 2,921 3,226 3,344 -6.2%

May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 May.. 13 v. May. 14

In addition to accelerating cost-savings for homeowners, the Energy Savings and Building Efficiency Act (H.R. 5027) stipulates that the Department of Energy would serve as a technical advisor in the development of energy codes and prohibit the agency from advocating for certain technologies, building materials or construction practices. “The agency’s strong suit is technical analysis, and its calculations on payback and efficiency can help code officials make more informed decisions and result in cost-effective code change proposals,” said Kelly. “That transparency leads to better building.” Specifically, the bill would ensure that all Department of Energy code change proposals are

· Made available to the public, including calculations on costs and savings; · Subject to the official rulemaking process, allowing for public comment; and · Take into account small business concerns.

“This bill will help ensure that new homes become 16

Dotzour Highlights Key Factors in Houston’s Economic Growth By Greg Tomlinson

Before a crowd of more than 400 of Houston’s homebuilding industry professionals and elected officials, Dr. Mark G. Dotzour, the chief economist and director of research for the Real Estate Center at Texas A&M University, offered a homebuilder’s perspective on what the economy is doing in 2014 at GHBA’s annual Mid-Year Forecast Luncheon on June 11.

really showed up in the third quarter of 2011. At that time, it was reported in the Wall Street Journal that housing prices in Phoenix and the rest of the nation, were up 20 percent

from the year before. That was the beginning of the first real evidence that things were improving. “Every month since,” Dotzour said, “the homebuyer’s psychology has gotten

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better.” According to Dotzour, the Consumer Confidence Index is back to 2007 levels, as are sales of automobiles. The number of people who plan to buy a home is also back to 2007 levels. The household net worth is recovering. Mel Watt, newly installed conservator for Freddie Mac and Fannie Mae, is expected to finalize new rules to get more people qualified for mortgages with lower down payments. This is good news because the pendulum will swing back to a more desirable middle ground and allow more qualified buyers to purchase homes, Dotzour noted.

GREG TOMLINSON PRESIDENT OF BUILDERS POST TENSION, INC.

Houston is in a situation where home price appreciation is locked in, creating more buyer incentive going forward. “The homebuying sentiment has improved dramatically,” he said, “and is going to continue to improve dramatically as home price appreciation exceeds the mortgage interest rate.” Houston and Texas is a top American market for business and construction. Texas has only a three-month inventory of unsold homes, which is good news for builders. To meet demand cause by projected new jobs and population growth, single family home starts in Houston are projected to be 30,000-40,000 homes per year for the next few years, if not longer, Dotzour noted.

Entire presentation is available at the GHBA website. (www.ghba.org)

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