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.
FOR MORE DETAILS PLEASE CONTACT MEMBERSHIP AT 830.598.7846 OR MEMBERSHIP@HSBRESORT.COM 2
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
Shop Where The Pros Buy San Antonio | Uvalde | Pleasanton | Corpus Christi | Kerrville
Providing ALL Of Your Building Needs 2202 Memorial Blvd, Kerrville, TX 78028 830.257.2300
MGbuildingmaterials.com
Turn 2 Flooring Residential | Commercial | New Build | Renovation Cori Pearce, Owner 512.560.9550 | turn2flooring@gmail.com 3827 RR 620 S, Bee Cave, TX 78738
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
518 MAIN STREET, MARBLE FALLS
Congressman Henry Cuellar, D-Laredo, will see
WWW.DELINEATIONS.COM 830.693.9408
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.
11
[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
12
COMPLETE DESIGNER SERVICES Residential | Commercial | New Builds | Remodel Debbie Cherry, ASID Interior Designer Debbie Farr, Designer Beverly McKinney, Designer
Call for Appointment: 830.798.0125 503 Hwy 281 N, Marble Falls, Texas OneSwankyShop.com
Spend your dreams Wisely. First United Mortgage Group’s One Time Close Construction to Permanent Loan Program provides the foundation for your construction needs to your home. This means that you can move through the steps of construction with peace of mind, knowing that your permanent financing needs are already in place. A variety of loan terms available, including 30-Year Fixed Rate*
Automated Draw Requests Jumbo & Super Jumbo Programs Available
Allows for the purchase of the lot if not already owned
Matthew Schepper
Mortgage Loan Consultant NMLS# 177669
512-529-7787 matthew.schepper@firstunitedbank.com mschepper.firstunitedteam.com
Member FDIC.
Equal Housing Lender. NMLS# 400025
*Example: Interest rate 3.2% and APR 3.268% is based on loan amount of $915,000, with loan-to-value 80%, 20% down payment, loan amount of $915,000, 360 payments at $3,959.23. The monthly payment amount listed does not include monthly mortgage insurance, taxes, and insurance; actual monthly payments will be greater. First United Bank (NMLS #400025) is a licensed lender in Oklahoma and Texas. The content in this advertisement is for informational purposes only. This is not an offer for extension of credit or commitment to lend. All loans subject to program guidelines and final underwriting approval. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. Copyright © 2021 First United Bank. All Rights Reserved.
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
512.756.7363 • HillCountryNationalBank.com
has been constricted. As a result, minority homeownership has
1210 S. Water (Hwy 281 South), Burnet, TX
not kept pace, and black homeownership is at a 50-year low,” says
NMLS# 407849
Pagliara.
14
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.
OUR SERVICES DRYWALL CUSTOM TEXTURES VENETIAN PLASTER NEW CONSTRUCTION
18
RESIDENTIAL COMMERCIAL FAUX FINISHES INTERIOR & EXTERIOR PAINTING
Builders | Architects | Home Designers & Clients YO UR RE S ID E N TIAL E N E R GY
Serving the Greater San Antonio Area & the
CO D E E X P E RTS
Texas Hill Country
Kevin Burk Owner & Chief Energy Code Consultant
830-446-2279
You’ll always have a licensed plumber on your job. Brian Burk
Chief of Operations & Energy Code Consultant
BurkEnergyRaters.com
830-446-8582
830.953.0714
ZKPlumbing.com
New Construction | Service Repair
info@BurkEnergyRaters.com
ZACHARY KIRSCHT, Owner Licenced & Insured | M#43100
Experienced and Seasoned Fleet of Electricians for Home Builders • • • • • •
Full Service Electrical Lighting / Fixtures Low Voltage & Security SONOS Music Systems Outdoor TV's and MORE!
210.233.6638 JPIelectric.com
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.”
20
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.
21
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
22
[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.
24
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.
METAL
TILE
SHINGLES
RESIDENTIAL
COMMERCIAL
GUTTERS
830.249.7939 Williamsonroofing.com
RICHARD WESTON
830.798.4371 Richard@WilliamsonRoofing.com
25
[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
26
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
27
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
28
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.
29
[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.
30
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.
31
32
33
Specializing in highly efficient thermal envelopes constructed with spray Our product is the baseline for in commercial and Point source self- reliance begins
830.693.8206
CustomCreationsAndInteriors.com
Blinds | Shades | Shutters Custom Window Treatments & Coverings Exterior Shades & Shutters Area Rugs by Loloi & Surya & Other Accessories Motorized & Cordless for Child Safety Custom Drapery & Bedroom Ensembles Complete Design & Professional Installation
Teresa Carosella, Owner 513 Main St., Marble Falls, TX