September 2021
San Antonio’s Homebuilding Industry Publication
EVERVIEW HOMES Josh Niemietz and Adam Smith And Their Award-Winning Parade Home
TEXAS CLIMATE ZONES Energy Rater Kevin Burk
DESIGN/BUILD CUSTOM HOMES Steve Zbranek
BUILD BATHS FOR ESCAPISM Beverly Smirnis
PHOTO BY JASON ROBERTS
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Courtesy of G. Morris Homes
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Building Savvy
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Architectural Photographer AmCap Home Loans Jason Roberts and Associates 210.422.2114 210.789.2033 www.jasonroberts.biz Building Materials Guido Companies
Building Materials 210.344.8321 BMC www.guidoco.com 512.977.7400 www.buildwithbmc.com MG Building Materials 210.623.4770
Guido Companies 210.344.8321 Doors www.guidoconstruction.com The Front Door Company
Doors Drywall The Front Door Company R. Hernandez Drywall 210.340.3141 210.733.6437 www.thefrontdoorco.com
Flooring Flooring Sunn Carpets and Flooring Sunn Carpets and Flooring 210.349.7866 210.349.7866 www.sunncarpets.com
Mortgage Company Mortgage Company
Electrician Electrician Balcones Creek Electric JPI Electric 210.368.6057 210.233.6638 www.jpielectric.com
Garage Doors Hollywood-Crawford Garage Doors 210.494.3434 Hollywood-Crawford www.hollywoodcrawford.com 210.494.3434
Pest Control Accurate Pest Control Pool Builder 210.495.0499 Infinity Pools of Texas www.accuratepest.net
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Home Warranties Centricity Granite Countertops 727.385.7599
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Diamond Plumbing 210.967.6100 Plumbing www.dptexas.com Diamond Plumbing 210.967.6100 Roofer www.dptexas.com Kendall County Roofing
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StrucSure Klar Insulation 830-624-4450 210.296.5499
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Insurance Hotchkiss Insurance Insulation 210.581.0420 Klar Insulation www.hiallc.com
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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
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[From The Publisher]
What Happens Next? The Association of Professional Builders’ recently released 2021 State of Residential Construction Industry (SORCI) report indicates that while builders in the United States have seen record increases in revenue and net profit with homeowners seeking to improve their living environments because of the COVID-19 pandemic, the unprecedented demand isn’t sustainable. APB says savvy builders will need to think more like strategists when it comes to lead generation, team building, project management, planning, owner’s remuneration, financials and self-development. The strategy won’t be the same for all of us. Just as we write about diversity of choice from auto manufacturers competing with each other in the various automotive segments, you’ll find your niche opportunities. The message is—be flexible and ready to tweak your designs and your marketing messages to pivot to the subtle changes. Here at Building Savvy, we’ll do our part in trying to help you keep up with these changes. NAHB’s recent study, What Home Buyers Really Want, 2021 Edition polled a panel of recent and prospective home buyers and some of the things that they revealed about their priorities for bathroom design revealed that preferences have changed as we enter the phase that will hopefully remain being called “post-pandemic.” Buyers are looking for a spa-like experience at home, and the builders of the 2022 New American Home® being built for the National Association of Home Builders’ International Builders Show (IBS) describe their entire house as a “private sanctuary for the homeowner with numerous spa-like features throughout. The countdown for the “in-person” International Builders Show is on and registration is open for the major home building industry event of the year happening next February in Orlando. This will be a banner year for product introductions and information sharing and a prime learning opportunity for you and your team! Cheers to the fall season coming soon!
Terry Kemmy Publisher 210.844.1542
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[Industry News]
SORTING THROUGH THE CRAZINESS
By Jim Leonard President, Greenboro Homes
2021 may go down as one of the best years since the early 2000s for new home starts and sales, but unlike other years, severe supply chain issues that never arose before threaten to put the brakes on the economic recovery. Nearly every aspect and every task has been slowed this year by a lack of available labor or lack of material, or both.
riving around town, signs are up at nearly
material needing to go to those area to rebuild, prices may remain high
every supplier looking for help, especially
for some time to come. And as mentioned, new home construction is
commercial drivers. Deliveries are backed
on fire just about everywhere.
up, not because of material shortages,
StrucSure_BuildingSavvy_Augustl2021.pdf
but because there is no one to deliver the goods to your job site. Other products manufactured overseas are held up due to lack of materials to make them. Items such as PVC, copper, aluminum, iron- you practically name it, are in short supply globally. Companies are telling builders that windows can take up to four months to get. Considering that windows need to be on the job site about 4-6 weeks into the start of a home, C
you would literally need to order them 2-1/2 months before starting the job. No windows means that the frame cannot be completed and dried in and you may not be able to get municipal inspections.
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Some lumber companies are reporting delays of 3-4 weeks to have material delivered. It’s in stock but they have no way to get it to you. Price increases are up in just about every category in the building cycle. Lumber futures prices have fallen by over 50% since early May but have only come down by a fraction of that in retail locations. Since many people have returned to work, they have put off home improvement projects until pricing comes back down. But with recent wildfires and
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6/22/21
7:36 AM
Sheetrock, insulation, plumbing parts, electrical outlet boxes, wire,
I once worked for a builder who said houses were built with $20 bills.
cabinets, interior trim and doors have all gone up in price. In many
Now this was a long time ago and the amount is probably higher, but
cases these increases are being passed along to builders even as the
his point was that there were savings everywhere if you just looked
house is under construction and the builder has no option to pay it or
for them. Do that enough times and the savings can add up to
have no product. Labor has also gone up in just about every task in
thousands which can go straight to the bottom line.
building.
They need to tighten up their estimates and only order what they
It’s easy for a production builder who builds on their own lots to
think they need. I’d rather be a little short on some items and have to
raise prices or cancel contracts or to sell the home at a higher price.
fill in small quantities than have a bunch of leftover material that has
But what about custom builders who build on lots owned by the
been sitting on the job site and cannot be returned for credit.
purchaser? There is no puling out of those deals. SO the custom
We have discussed savings with our framing engineers in order to
builder sucks it up, pays the difference which probably exceeds what
reduce cost and quantities. For years we wrapped our houses with
they can draw for that item and hopes to make some money at the
OSB but when the price got to be over $50 per 4x8 sheet, we talked
end of the project.
about using structural thermal ply instead. The cost for a 4x8 sheet
So how does a builder hope to contain cost and stay profitable?
of that is around $13. It’s not as pretty, but the engineer signed off
Builders need to analyze their plans and look for areas to reduce
on it and we began using it instead of OSB. We have gone through
quantities where possible. Can you reduce one cabinet from your
other facets of our home and found additional areas to save cost.
kitchen? Can you reduce the size of the kitchen island by at least one
Interestingly we should have been doing this all along but it took
foot? Does the bathroom shower need to be capable of washing a
major price increase and supply chain upheavals to make us look
small car or can you cut down the size, reducing the amount of tile
hard at our product. It’s a lesson more builders should look at.
needed?
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[Focus Section]
BUILD BATHS FOR ESCAPISM By Beverly Smirnis
As homeowners continue to seek places to retreat from stress inside their homes, a bathroom design that focuses on health and wellness is the winning ticket. Bathrooms also top the list as a primary area of the home that Americans are planning to upgrade.
Designers are speaking of softer shapes, styles and finishes, naming “natural/organic” as the leading trend. This combination feels more European in style and scale, with clean lines, minimal detailing, and the warmth and texture of natural finishes. Google reported searches for “home sauna” were up 73% year over year, while searches for “luxury sauna” doubled over the same period. Product manufacturers recognize the trend and respond with saunas and steam rooms and other items that recreate the type of health and relaxation benefits found at a high-end gym or spa.
Gessi’s Aflio system reimagines the shower experience with flowing water, glowing lights, an illusion of floating in space.
As part of the brand’s signature Private Wellness® Program Colour by Gessi employs refreshing waterfalls, stimulating hydro-massage, soft nebulized mists, and mood-changing hues to produce a sensory shower like no other.
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NAHB’s recent study, What Home Buyers Really Want, 2021 Edition polled a panel of recent and prospective home buyers. When a few years ago, there seemed to be declining interest in tubs in favor of showers, it is insightful that in rating bathroom features for the primary bath, the desire for a shower/tub combination earned the highest number of “essential” rankings, meaning that these buyers would be unlikely to buy a home without this feature. Ideally, the tub and shower would be freestanding. The jury is out on soaking tubs versus jetted tubs, with the NAHB study showing only slightly more than half said a whirlpool bath was important. The National Kitchen & Bath Association named larger freestanding showers as an emerging trend, recommending that they be designed to accommodate two people with zero-
Hand-crafted from MTI’s signature SculptureStone® material, a mixture of ground
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grab bars. NAHB’s study suggests that 59%
stone. MTI Baths’ Bowie freestanding tub with unique “pleated” exterior adds
of its respondents named multiple shower
unexpected texture to the bathroom.
heads as a priority. Also at the very top of the list, 76 percent of home buyers rated a linen closet as essential or desirable. Double vanities were essential or important to 69%, and 67%sought a private toilet compartment. Results also indicate that white toilet, tub, and sinks are preferable (65%) over their color counterparts (preferred by 44%). Other items often cited for bathroom wishlists include larger-format surrounds with fewer grout lines, voice-activated or handsfree faucets, toilets with self-closing lids and bidets.
Beverly Smirnis is the co-founder of Building Savvy magazine and publishes its flagship Dallas/Fort Worth edition. She and her business partner and husband, Steve Smirnis,
Easy Sanitary Solutions’ new Super Slim design Xs Series Shower Drain is the world’s
have served as judges for the International
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Builders’ Show Best of IBS Awards and judged
design.
numerous homes for builders association parade events across the country.
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[Savvy Special Report]
REGISTRATION FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS’ 2022 INTERNATIONAL BUILDERS SHOW FEB. 8-10 IN ORLANDO OPENS SEPTEMBER 1
T
he most elite professionals and ‘who’s who’ experts
With its official show homes expected to take center stage as
in residential construction will present and share their
main attractions, the build teams have experienced many of the
insights at IBS education sessions, addressing niche-specific
same supply and permitting challenges that will be subjects of
challenges as well as solutions and trends to wow customers.
discussion and guidance at the show. A willingness to adapt
Hundreds of new products and services are launched on the
and develop new solutions have been the keys to overcoming a
exhibit floor each year as leading manufacturers and suppliers
variety of changes and delays. The New American Home and
showcase their latest products.
New American Remodel 2022 will be officially unveiled to the public and open for touring during IBS 2022.
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Described as a “private sanctuary for the
will be held). The community itself is also trend-setting with transitional architecture consisting
homeowner” who will enjoy its “numerous
of brightly colored townhomes, cottages and multi-story properties complemented by modern
spa-like features, the New American Home®
design and technology features.
2022 is an upscale coastal concept home, designed by BSB Design and built by Envy Homes to raise the bar for high performance, modern amenities and contemporary flair. The three-story property will boast 4,646 square feet of living space, with three bedrooms and four-and-a-half bathrooms. Features will also include a rooftop terrace, an exercise room and numerous indoor-outdoor living amenities as well as a pool courtyard. It is expected to achieve net-zero status and Emerald-level certification from the National Green Building Standard. It will also earn certification from ENERGY STAR, Indoor
Lake Sue provides a beautiful backdrop for an innovative masterpiece like The New American
airPLUS, and the U.S. Department of Energy’s
Remodel 2022, the design of which will remain true to its original mid-century modern
Zero Energy Ready Home Program.
character. Architect Phil Kean and remodeler Eric Gray will oversee the home’s transformation,
TNAH is located in Laureate Park at Lake Nona (approximately 25 minutes from the Orange County Convention Center where IBS
which will optimize existing features while nearly doubling the amount of living space from 2,662 square feet to 4,688 square feet. For more information on the show and the homes, visit buildersshow.com.
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Your customer wants a home built for the world of today – and tomorrow.
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[Savvy Finance]
NEW TAX DEVELOPMENTS FOR S CORPORATIONS An important tax court decision was recently passed down that addresses a common audit trigger for S Corporations: Payments to sole shareholders. Are they considered wages or distributions? The answer to that question can alter a business owner’s tax obligation by thousands of dollars.
By Steven Bankler, CPA
When a business is just starting out,
pay themselves what the IRS considers “reasonable
the owner often chooses a passthrough
compensation for their services” to the business instead of
structure like a sole proprietorship or LLC.
primarily (or solely) taking distributions.
However, once the organization begins making more profits and taking on more expenses, it’s time to start considering
A recent U.S. Tax Court case illustrates what can happen when S Corps ignore that golden rule. A Minnesota law
whether becoming an employee of the business under a
firm’s sole owner failed to report any wages in recent years,
corporation designation is best for tax purposes (and other
and, in others, the income and compensation reported
reasons). An S Corporation Election (or S Corp) can be a
on her personal returns didn’t line up with the law firm’s
valuable middle ground for profitable small businesses
returns.
because it allows shareholders to, essentially, split the difference on taxes between taking distributions of earnings and profits and being paid a salary as an employee.
This mismatched income and wages and an improperly completed Schedule C triggered a tax audit for both the individual and the firm. Can you guess what auditors
An S Corp is constructed to work around what many
determined? The firm was liable for employment taxes
consider a corporate design flaw that leads to double taxation. Even the IRS admits that S Corp allow shareholders to avoid double taxation on corporate income. But that
on, basically, everything the owner paid herself. Once she admitted that she was an employee of her S Corp, the IRS determined that “the firm had no reasonable basis for
doesn’t mean the IRS isn’t watching closely for those
treating [her] as anything other than an employee.”
stretching the opportunity beyond what’s appropriate.
This ruling alone doesn’t change the game for S Corp
The IRS prefers that S Corp shareholders pay themselves
shareholders, but it does re-emphasize the need for due
wages over taking distributions (wages equal employment
diligence when classifying distributions versus wages.
taxes, after all). To this end, the shareholders need to
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Additional changes and rulings over the past year
»
circumstances apply to your S Corp-designated
»
business, it’s time to seek tax advice: »
»
You’re a shareholder of a not-for-profit interested in making an
The S Corporation pays (or could pay) state and local income tax (SALT) payments separate from your individual SALT payments.
»
There’s more than one class of stock associated with the
You’re unaware of the 2020 and 2021 changes to Schedule B-1/ K1 and international reporting.
business. »
Your business recently terminated its S Election to become a C corporation.
S election. »
Your S Corporation holds stock in a controlled foreign corporation (CFC).
may affect particular S corporations. If the following
Your S Corporation operates a mixed-funds investment in a
With corporate tax rate hikes looming, too, there are more than enough
qualified opportunity fund (QOF).
reasons to revisit your S Corp tax strategy.
»
Your business recently merged with another company.
»
You participated in the Paycheck Protection Program (PPP).
»
You received cancellation-of-debt (COD), a lawsuit settlement,
protection as well as exit strategy services for closely held businesses. He
or other extraordinary income that could be miscategorized.
also provides litigation support (both as a testifying expert witness and a
»
Steven Bankler has more than 44 years of experience in the accounting industry. Steven’s expertise lies in consulting, planning, tax, and asset
consulting expert), business negotiations and estate planning. Visit www.
You’re unsure whether the accumulated adjustments account
bankler.com for additional tax strategy tips and to learn more about Steven
(AAA) used to compute the tax effect of your distributions
Bankler, CPA, Ltd.
meets newly outlined IRS standards.
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[Savvy Builder]
EVERVIEW HOMES Striving to be Best in Class in All They Do
E
verview Homes aspires to be respected as the builder-of-choice for families seeking to invest in a home
that best fits their lifestyle and reflects who they are as individuals. They strive to create healthy,
“We offer the most sensible
efficient, and low maintenance
way to build through a value
homes that enrich, enhance and
rich, streamlined process,”
simplify their homebuyers’ lives.
adds Smith. “We provide true
Their award-winning home in the
craftsmanship and cutting-
recent GSABA 2021 Parade of
edge design elements with
Homes was no exception. They won
exceptional amenities to
the Parade award for Best Master
meet and exceed our client’s
Suite and Master Bath.
expectations.”
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Ten years ago, Everview Homes began building
with Century 21. A few short years later, at age 25,
homes ranging between 1,200 and 2,000 square
he split off on his own as a broker with one realtor
feet in Northeast San Antonio and quickly
and quickly grew to a firm with 70 realtors. Adam
progressed into the semi-custom and custom
was a top agent for Century 21. However, in 2008,
market. Today, Everview continues to build
the famous recession bit everyone hard.
beautiful homes including production, semicustom, custom, multifamily, and duplex homes in Spring Branch, Blanco, Horseshoe Bay, New Braunfels, Hondo, Seguin, Selma, and San Antonio.
“I always wanted our product to be best in class, no matter the size and scope of the project,” says founder Adam Smith. “Structure and architecture are important to me, even in smaller homes. We
Smith entered the building industry by way of real
pride ourselves in giving our clients a lot more for
estate. Twenty-one years ago, he was a new agent
their money.”
Smith decided he was going to endure and get through the economic storm by shifting gears. Instead of just selling homes, he partnered up with a land developer and started selling and marketing land. The knowledge he gained by working closely with developers, while at the same time listening to the wants and needs of consumers in a difficult economic time, proved to be a foundation for his venture into launching a residential construction business. “It was an incredibly difficult time back then,” adds Smith. “But I was all in and kept learning more about the complete residential picture. Every day I had to tell myself that no one else was going to bail us out. Everyday you go all in. “
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Smith’s right-hand person for his luxury custom homes is builder Josh Niemietz. Josh’s father Joseph Niemietz was a builder, so he grew up on job sites. As a teenager he worked on framing crews; was an electrician assistant; worked on plumbing crews, and even learned interior trim. By age 19, Niemietz moved into management and never looked back. “Building a home that is tailor made for a family is key,” says Niemietz. “Clients want and expect custom homes designed and built around their family’s needs and personal preferences. We’re able to consistently provide both style and quality to our buyers.” A quick look at their website (www.everviewhomes.com) will provide a list of standard features in their homes that are often upgrades or extras with other builders. Most notably, are a few signature Everview features such as 14-20-foot ceiling heights (foyer, family room, dining); 10-foot plates and ceiling treatments throughout; and 8-foot doors throughout first floor. Everview’s parade home in Belle Oaks drew rave reviews for these and many other unique features: stately curb appeal, 20-foot ceilings; butler’s pantry, hidden safe room, wine room and the most incredible master suite in the parade.
Like most builders Josh is particular in choosing subcontractors, suppliers and partners. Many of them have been with Everview for several years. Here’s what some of them had to offer:
“Working with Josh is great. I know him also as a friend. He’s got a lot of integrity and high character. He will always do what he says he’ll do, and in this business that is rare.” Terry Brown, BnT Plumbing “Adam is a very smart builder; very progressive and forward thinking. He takes care of his guys.” Rudy Garza, Airmaxx “That parade home was amazing! They always build unique, highquality homes. Their ceilings and elevations really stand out. Jose Trejo, Trejo Electric “Working with Josh is great. I know him also as a friend. He’s got a lot of integrity and high character. He will always do what he says he’ll do, and in this business that is rare.” Terry Brown, BnT Plumbing “Josh is very direct, very thorough. He expects us to do our part professionally and trusts us like a valued partner. We really enjoy our relationship and the growth we’re experiencing with them.” Juan Cantu, C3 Granite
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[Sales Energy]
THE RESIDENTIAL ENERGY CODE IN TEXAS: What You Should Know, and How It Can Work For You By Kevin Burk, RESNET Home Energy Rater
A
s a Texas homebuilder, architect, or home designer, you may be asking yourself what is
In this article, I will attempt to answer these
this energy code, and what do I need to know about it?
questions, and more importantly, show how
Why does a home built in Fredericksburg need to meet a
the energy code can actually help you build
different standard than a home built in New Braunfels? What are the compliance options available to me as a
and design a better, more efficient, and more
builder or an architect, and how is compliance determined?
comfortable home for your homeowner.
Kevin Burk, from left, Brian Burk and Mark Whittemore.
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Background The 2015 International Energy Conservation Code, otherwise known as the IECC, has been the
insulation and windows with a u factor of
law of the State of Texas since September 1, 2016. It addresses the design of energy-efficient
.40 or better, but that same home built in
building envelopes and installation of energy-efficient mechanical, lighting, and power systems
Boerne would require R-20 walls or R-13 with
through requirements that emphasize performance in both commercial buildings and low-rise
continuous R-5 insulation and a window with
residential (3 stories or less in height above grade) buildings. It serves as a minimum code
a u factor of .35 or better. See the table, below.
standard for all builds in the State, regardless of whether there is a municipal code enforcement authority. As one of the International Codes (I-Codes) in the family of I-Codes promulgated by the International Code Council (ICC), it establishes the minimum regulations for energy efficient buildings. The residential portion (Chapter 4) of the IECC is replicated as Chapter 11, Energy Efficiency, in the 2015 and subsequent editions of the International Residential Code (IRC). The law that established the 2015 IECC as the state energy code empowered the State Energy Conservation Office (SECO) as the executive agent for recommending changes to the code but limited its ability to do so to once every 6 years. We are currently in a permissible change year, and the Texas Legislature has made some minor changes to the 2015 law. As of July 22, 2021 the Legislature has not changed the minimum state energy code from the 2015 IECC.
There are 3 distinct climate zones in Texas, but we will deal with only 2 here. Climate Zones 2
While we are blessed with many things by living here in Texas, one could argue that having such a diverse change in energy code requirements as defined by the two climate zones running right through the middle of our state is not one of them. It is indeed a
and 3, which encompass the Greater San Antonio – Austin - Hill Country Area. The climate zone
significant challenge for our builders and
boundaries are defined by county political boundaries across the United States. These climate
architects.
zones are determined by the US Department of Energy and are based on climate data. The climate zones in Texas are as follows:
Compliance Options = Flexibility »
Climate Zone 2: Edwards, Real,
Bandera, Bexar, Comal, Travis, Hays and the
The 2015 IECC and the more recent 2018 and 2021 editions provide 3 ways for a builder to
counties south and east.
achieve compliance with the energy code.
»
method with the above-code Energy Star for
Climate Zone 3: Most of the Texas
Hill Country with Kimble, Kerr, Kendall, Gillespie, Blanco, Llano, Burnet and the counties north and west. What is significant about the climate zones? Quite a bit, actually. There is a significant difference between Climate Zone 2 and 3 in terms of:
And the State of Texas provides a fourth Homes program. All 4 options are based on an energy-efficient building envelope. They differ in how they calculate efficiency of the home within that envelope. I will summarize each. Prescriptive Path. This method of determining compliance focuses on the heating and cooling loads of the building
»
Building envelope air leakage, as measured by the blower door test;
»
thermal enclosure insulation, specifically in walls; and
»
fenestration ratings, specifically window u factors.
envelope, measured in terms of heating and cooling Btu per square foot of building envelope. The focus is on the thermal performance of the home, not on the efficiency of mechanical systems or the operating cost
For example, a home built in Bexar County, which is in Climate Zone 2, requires a blower door test of 5 Air Changes per Hour at 50 pascal (expressed as 5 ACH 50) or less, while that same home built in Kendall County, which is in Climate Zone 3, would require a significantly tighter envelope requiring a blower door test of 3 ACH 50 or less. Three air change per hour (3 ACH 50) translates to 3 volumes of the conditioned space being measured as leakage over the course of one hour at an induced pressure of 50 pascals.
of the home. There are 2 methods of complying a home by the prescriptive path. One method uses the prescriptive table in the code and requires no software calculation and does not allow for trade-offs in the building envelope.
There are significant differences in terms of wall insulation and window performance
The second method uses an energy rating
requirements, as well. For example, a home built in New Braunfels requires only an R-13 wall
software such as RES Check or Ekotrope and
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allows trade-offs in the building envelope by calculating compliance
requires energy rating software that can generate an index score,
by envelope component. The Prescriptive Path is the most rigid
and RES Check is not capable.
compliance path, and limits the flexibility that builders and architects
The Texas Energy Rating Index provides the greatest flexibility for
have in build and design.
both the builder and the architect because it rewards both innovative
Simulated Energy Performance Path. This method of determining
building envelope design and higher efficiency mechanical systems
compliance focuses on the operating cost of the home being
and appliances. When the State of Texas adopted the 2015 IECC
designed or built as compared with the operating cost of that same
it adapted the index to provide significant flexibility to builders and
home built to the prescriptive standard in the table above. This
designers. The following indexes are required for compliance in
compliance method requires a software calculation and factors
Texas climate zones 2 and 3, and is referred to as the Texas Energy
more energy efficient envelope components, such as reflective
Rating Index (TX ERI). Lower index numbers equate to more efficient
metal roofing or better performing fenestration. This is where
homes.
the flexibility of the IECC benefits builders and architects. This cost performance method allows trade-offs in building envelope components and frees the envelope design from the constraints of the prescriptive table, so long as the operating cost of the home
•
TX ERI of 63 through August 31, 2022
•
TX ERI of 59 effective September 1, 2022
does not exceed the operating cost of the prescriptive built home
In summary, the 2015 IECC provides for a minimum standard
when compared side-by-side in the energy rating software program.
of efficiency for residential home builds in the State of Texas. It
The Simulated Performance path allows more flexibility in building
implements the US Department of Energy climate zones, of which
envelope design and materials, but is does not reward higher
there are significant differences between Climate Zones 2 and 3 that
efficiency mechanical systems or appliances.
Texas builders and architects must account for. It provides builders and architects flexibility by providing three distinctly different
Energy Rating Index. This method of determining compliance
approaches to compliance. It is not your grandfather’s energy code
focuses on the operating efficiency of the home as expressed by an
– and that is not a bad thing.
index score. The index rewards the use of more efficient mechanical systems (HVAC and hot water) and incorporates certain appliances
About the Author - Kevin Burk is the owner of Burk Energy Raters
such as dishwashers, washing machines, dryers, and refrigerators.
in Boerne, TX. He has been a Residential Energy Services Network
The higher the efficiency of mechanicals and appliances, the lower
(RESNET) Home Energy Rater for 5 years, and has rated hundreds of
the energy rating index will be for a given home. In 2015, this index
homes for energy code compliance. Prior to starting his company in
score was the equivalent of the HERS rating score. This year, the
2016, he served a 28-year career in the US Army.
Texas Legislature updated the way this index is calculated, and it is no longer equivalent to the HERS index. This compliance method
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[Builder’s Corner]
Design/Build Custom Homes, Lake LBJ Style
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By Steve Zbranek
hen I started my homebuilding career 42 years ago, I remember the immense job satisfaction from scraping dirt on a lot, pouring concrete, building a home and handing lucky homeowners the keys at the end. Their excitement
was contagious and it made all of us want to do a better job every day. Through the years it has always been fun to bring custom home dreams to life for
We chose the Design/Build format when our
families, but three years ago the fire has been reignited. Our team at Zbranek &
company began with a goal to become a full
Holt Custom Homes has opened an office in Horseshoe Bay on beautiful Lake
service, one stop building company for all
LBJ. Now we are not only building amazing custom homes, we are also building
things related to a new home project. We
places where families come to play, relax and have fun. The mood is festive and
call it “Plans to Plants.” To be a Design/Build
the ideas are based on elegant design and entertaining family and friends.
firm does not necessarily mean loading up overhead with someone on staff for every function. While some builders do have “in house” architects, the majority in this category form business relationships with several plan designers and architectural firms to help each other build their business. There are several benefits to a builder in a Design/Build structure. First and most important to the client, you begin with a target budget, and design a home to that budget. Does this always work? Sometimes not. However, when clients add things such as large, covered patios, multi-car garages, wood windows, upgraded cabinets, etc. …they see the cost of these items in real time, and the effect that they have on the final contract price. Some clients pay for what they want, but still don’t like surprises at the end. Others have a top end price that they can or will pay for their new home. With Design/Build they can see these costs and prioritize their decisions accordingly.
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Another benefit to the builder is keeping items from being added to
Next, form a marketing relationship with one or more plan designers/
the house that raise the cost, and are not requested by the client.
architects who are not too busy to work with you. Often the best
Examples of these are non-standard window sizes, large overhangs,
named architects in the area are very busy and can’t offer the pricing
flat roofs, abundance of masonry detail, and one of my favorites 150
and turn around time needed. Seek out others trying to grow their
recessed cans. A builders input here can save money for the clients to
businesses. Discuss becoming a sales arm of a sort to their company
get the things that matter to them the most. Next is timing. A Design/
and the amount of business that you think you can send.
Build firm can typically go from “how are you?” to a permit set of
In our system, we offer the clients no cost preliminary sketches
plans faster than when the plans are controlled outside of their office.
upfront to get their ideas on paper. Our deal with the plan guys is that
Because we send so much business to a few firms our plans get a
we will pay them an hourly fee for these sketches, if the buyers walk.
priority and our homes get started faster.
If they continue to full plans the sketches are part of the typical design
So, does being a Design/Build company mean that you don’t consider
process for their firm and paid on a negotiated per square foot basis.
other types of business? Not necessarily. If a client presents a set of
If we lose a client after a couple of sketches, we pay the bill and write
plans drawn by an architect of their choosing it becomes decision
it off to marketing.
time for the builder. Do you want to take time for your staff to obtain
Pre-qualifying who you are talking to is the key here. We may lose
bids and create a budget for a home that you may not build? In slower
one out of twenty people that we draw sketches for. And, usually
times this might make sense. In our company we rarely bid plans.
for a reason unrelated to the home itself. Some builders ask for a
We are fair priced for everyone but there is always another company
deposit and a signed “design agreement” at this stage. This keeps
willing to build a home for less. Unless a buyer has thoroughly
the clients involved and invested. One important factor is that we also
researched other builders and literally asks us to be their builder (this
negotiate with the architects and plan designers that the drawings are
does happen), we pass. As I have written in a previous article, we
copyrighted for our use only, since we are paying the bills. This keeps
have all met clients who paid architects to draw the home of their
clients from shopping your drawings to other builders.
dreams, and the final cost was out of their range. Likewise, architects
I was recently asked by the Texas Association of Builders to do an
will tell us that they have drawn nice homes for families that were
educational presentation on this subject at the Sunbelt Builders Show.
never built. This happens when plans are dawn without budget
I estimated that there were close to 165 attendees in the session.
checks and balances along the way. More than once in my career
There was much interest in this subject and many questions during
after we price a client’s plans, and the number was too high, they
and after the session about how it all works. Since then, I have
abandoned those plans and had us draw a new home in their budget.
received many inquiries from builders and remodelers in the audience
This is why Design/Build works.
who want to learn more. We are a fixed price, (not cost plus) Design/
If a company is not a Design/Build company and would like to
Build Company and have been from the start. It works for us, and
change their program, what is the first step? It starts internally. To
our clients. Starting with the end in mind creates a fun project in an
be successful the person on the builder’s team working with clients
industry that is seldom referred to as fun. And as a wise friend once
needs to be well versed and current on construction costs. Most
told me, “If you are not having fun at what you are doing, do something
custom builders and remodelers check this one off easily. However,
else.”
if you sell with Realtors or sales agents who don’t possess costing knowledge this will be a problem.
About the Author In addition to serving two terms as Chairman of the Lake Travis Chamber of Commerce, Steve Zbranek was also the Founding Chairman of Leadership Lake Travis, served on the Board of Directors Lakeway Police Memorial Foundation and was recognized as both Business of the Year and Citizen of the Year by the Chamber. A decorated US Air Force Veteran, Steve is a 42-year Custom Home Builder in San Antonio, Austin, Horseshoe Bay & Texas Hill Country. He’s a two-time National Master Builder of the Year, was inducted in the Austin Builders “all of Honor” and his company Zbranek & Holt Custom Homes was recognized three times by the Austin Business Journal as “Custom Builder of the Year.” Zbranek is also a Past President of both the Greater Austin and Greater San Antonio Home Builders Association. For more information visit www.zhcustomhomes.com
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[Savvy Trucks & Toys]
Looking for a Mid-Sized Truck? Your Driving Personality Will Determine the Right Fit
By Beverly & Steve Smirnis
For 2021, the Ridgeline received substantial styling changes to give it a more squared-off and a more rugged look that better matches its truck capabilities, which include the fact that Ridgeline has a payload capacity of 1,509 to 1,583 pounds and the largest standard bed in its segment. Everything in front of the A-pillar is new, including a taller hood, a larger grille and and redesigned headlights.
T
At the rear is a new bumper design with a dual exhaust. To further toughen up the he mid-sized trucks are just about as big as some of the older model half tons but they’re still efficient and maneuverable and for the most part less expensive. The Honda Ridgeline is constructed with a strong and highly rigid unibody, which together with the fully independent suspension and torque vectoring
looks Honda, has brought out a HPD (Honda Performance Development) appearance package, a $2,800 add-on that gives you squared-off fender guards, special graphics and bronze-colored wheels.
all-wheel drive (now standard on the 2021 model) gives it superior on- and off-
All the things that people like about the
road handling, and a quiet and comfortable ride. The critics have long given the
Ridgeline remain—lots of standard tech
Ridgeline a good ranking in the midsize truck category for the ride and handling
features, a dual-hinged tailgate that swings
and for its cabin, but it has also garnered a nearly equal amount of criticism
both down and out, a bed with lockable in-
because it looked more like a minivan with a pickup bed than it did a pickup truck
bed 7.3 cubic-feet storage compartment
and it doesn’t have the off-road capability and true truck-like features of its body-
that can carry 4-foot-wide objects between
on-frame contenders in the midsize pickup segment.
the wheel wells, and a 60/40-split rear seat
28
base that flips up so you can stow things on the flat cabin floor. It also retains a naturally aspirated 3.5-liter V6 engine putting out 280 horsepower and 262 pound-feet of torque with a 9-speed automatic transmission, rated to tow up to 3,500 pounds or 5,000 pounds with upgrades including AWD. The Ridgeline starts at $37,655 and you can spend up to $43,920 for the Black Edition. The Ford Ranger starts at $24,820 with the Tremor package vaulting the price upwards of $42K. If you’re comparing a Ridgeline to a Tremor, your choice will come more down to personality than price, however. High-strength steel frame and frame-mounted steel bumpers (included on 4x4, FX2 and Tremor) qualify the Ranger as another Built Ford Tough® work
ride is stiffer, but the big bragging point for the Tremor is that, unlike the competitor’s off-road trucks, it doesn’t lose any towing capacity. Just like all the other Rangers, the Tremor can tow up to 7,500 lbs. when properly equipped and it still has a payload of 1,430 pounds.
truck with payload capacity of 1860 pounds. Ford’s turbocharged
The Ridgeline and the Ranger Tremor are two extremes, exhibiting that
2.3-liter 4-cylinder engine powers the Ranger, generating 270 hp
the midsize truck segment has something to offer for all types of drivers.
and 310 lb-ft of torque, and it’s paired to a 10-speed automatic transmission. The new SuperCrew four-wheel-drive Ranger with the Tremor OffRoad package gets the adventurous driver revised suspension and underbody protection along with added ground clearance, Fox shocks, 32-inch all-terrain tires, recovery hooks and more. The fatter tires, better shock absorbers and new rear springs help the Ranger ride and handle a little better on-road, too. Yes,
Beverly & Steve Smirnis are members of the Texas Auto Writers Association and the Texas Motor Press Association, reviewing vehicles and casting their votes at driving events where the Truck of Texas, Car of Texas and Off-Road Truck of Texas are some of the titles awarded. Follow their automotive blog on TheSavvyList.com/TheSavvyDriver
retaining all of that towing and hauling capacity means that the
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