builders outlook 7/11
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Issue 7 2011 Building El Paso’s tomorrow today
Builders Outlookwww.elpasobuilders.com
The 82nd Texas Legislature ended after
one special session to resolve some
lingering budgetary and politically
motivated issues. The TAB lobby team had
a dynamic session as issues surrounding
housing, county authority, regulatory bills
and others took up hundreds of hours of
work. While the lobby team is our
professionals at the Capitol the EPAB
would like to extend special thanks to our
members who took personal time out to
travel to Austin to testify or help with
supporting or defeating certain pieces of
legislation. Rally Day in Austin was a part
of the success. The monetary value of the
work done by EPAB members and the
lobby team resulted in hundreds of
millions of dollars in savings to the
industry. With the budget woes expected
over the next decade the TAB leadership
has warned that housing will continue to
be a target for funds, meaning that we can
expect more bills in the coming years. This
review is from the TAB “Tabloid” issue
July 2011 and gives you insight into how
complex the issues were. Additional
budget information is inside this special
issue of Outlook.
Here is a review of the legislature and
some highlights:
SPECIAL SESSION – Most of the bills
in the governor’s call for the special
session passed. The exceptions were the
anti-sanctuary cities legislation and the
Transportation Safety Administration
intrusive touching bill. Below is the
final outcome of issues in the governor’s
call. Expanded bill summaries are in
the issue categories below.
Fiscal Matters – The governor’s call said,
“Legislation relating to fiscal matters
necessary for the implementation of HB 1
passed by the 82nd Legislature, including
measures that will allow school districts to
operate more efficiently.” SB 1, the fiscal
matters bill; SB 2, the supplemental
appropriations bill; SB 6, establishing the
instructional materials fund; SB 8, giving
school districts flexibility on personnel
and other matters; and HB 79, the fiscal
matters bill streamlining operations of the
judiciary, all passed.
Healthcare Cost Containment – The
governor’s call said, “Legislation relating
to healthcare cost containment, access to
services through managed care, and the
creation of economic and structural
incentives to improve the quality of
Medicaid services.” SB 7, which makes
several changes that improve efficiencies
in health and human services delivery,
passed.
Congressional Redistricting – The
governor’s call said, “Legislation relating
to congressional redistricting.” SB 4, the
congressional redistricting bill, passed.
Texas Windstorm Insurance Association –
The governor’s call said, “Legislation
relating to the operation of the Texas
Windstorm Insurance Association.” HB 3,
which makes changes to the Texas
Windstorm Insurance Association, passed.
Abolish Sanctuary Cities – The governor’s
call said, “Legislation relating to the
abolishment of sanctuary cities, the use of
the federal Secure Communities Program
by law enforcement agencies, and the
issuance of driver’s licenses and personal
identification certificates.” SB 9 by
Tommy Williams (R-The Woodlands), the
sanctuary cities bill, passed the Senate but
died in the House State Affairs Committee.
HB 9 by Burt Solomons (R-Carrollton),
the House version of the bill, also died in
the House State Affairs Committee. There
was a last minute effort to add anti-
sanctuary cities language into SB 1, but
that was not accomplished.
Intrusive Touching – The governor’s call
said, “Legislation relating to the
prosecution and punishment for the
offense of official oppression on those
seeking access to public buildings and
transportation.” SB 29 by Dan Patrick (R-
Houston) and David Simpson (R-
Longview), which classifies intrusive
touching used in searching persons
seeking access to public buildings and
transportation as official oppression, was
brought up on the House floor on the last
day of the special session but did not get
the four-fifths vote required to suspend the
constitutional rule requiring bills to be
read on three several days. Therefore, it
did not pass.
GOVERNOR – At the conclusion of the
special session, Governor Rick Perry said,
“I’m proud of Lt. Governor David
Dewhurst, Speaker Joe Straus and
lawmakers’ principled leadership to pass a
balanced budget that doesn’t raise taxes
and preserves billions unspent in our
Rainy Day Fund, leaving our state on firm
fiscal footing for the future. The decisions
made were difficult, but lawmakers should
take pride in the fact that they did what
families all across Texas are doing: living
within their means. I’m also proud we
passed legislation that effectively reforms
the Texas Windstorm Insurance
Association, addresses necessary health
care efficiencies, and completes
congressional redistricting. Although I am
disappointed lawmakers did not finalize
legislation that would have banned
sanctuary cities, I commend the
Legislature’s work to pass measures that
further strengthen our legal system
through loser pays lawsuit reform, uphold
the integrity of the ballot box by requiring
voters to present photo ID at polling
places, protect unborn life by requiring an
ultrasound before an abortion, strengthen
private property rights, and increase
penalties for individuals who participate in
human trafficking. And although the
airport pat-down bill did not pass, it did
initiate a public discussion and some
changes in airport security procedures.
Ultimately the measures we have worked
together to complete this session will keep
Texas a model of good, efficient and
limited governance that other states and
the federal government should follow.”
SENATE – Last Monday, the Senate
passed HB 79 by Representative Tryon
Lewis (R-Odessa) and Senator Robert
Duncan (R-Lubbock), the fiscal matters
bill streamlining operations of the
judiciary.
The Senate also adopted the conference
committee report on SB 7 by Senator Jane
Nelson (R-Flower Mound) and
Representative John Zerwas (R-Fulshear),
which makes several changes that improve
efficiencies in health and human services
delivery.
82nd Legislature ends, Texas Builders prepare for 83rd
82nd Legislature
Story
continues
page 3
Builders Outlook3
The Senate also adopted the conferencecommittee reports on both of the educationreform bills: SB 6 by Senator FlorenceShapiro (R-Plano) and Representative RobEissler (R-The Woodlands), whichcombines the textbook fund and thetechnology allotment fund into a newinstructional materials fund; and SB 8 bySenator Florence Shapiro (R-Plano) andRepresentative Rob Eissler (R-TheWoodlands), which gives school districtsflexibility on personnel and other matters;and they adopted the report on SB 2 bySenator Steve Ogden (R-Bryan) andRepresentative Jim Pitts (R-Waxahachie),a supplemental appropriations bill.Senator Wendy Davis (D-Fort Worth) andnine other Democrats voted againstadoption of the conference committeereport on SB 2 and Davis and eleven otherDemocrats voted against adoption of theconference committee report on SB 8.After recessing into a caucus for twohours, the Senate came back to pass SB 29by Senator Dan Patrick (R-Houston) andRepresentative David Simpson (R-Longview), which classifies intrusivetouching used in searching personsseeking access to public buildings andtransportation as official oppression.
Last Tuesday, the Senate adopted theconference committee report on SB 1 bySenator Robert Duncan (R-Lubbock) andRepresentative Jim Pitts (R-Waxahachie),the fiscal matters bill. Senator Leticia Vande Putte (D-San Antonio) was one of nineDemocrats to vote against the conferencecommittee report on SB 1.
The Senate also adopted the conferencecommittee report on HB 3 byRepresentative John Smithee (R-Amarillo)and Senator John Carona (R-Dallas),which makes changes to the TexasWindstorm Insurance Association. UponSenate adoption of the conferencecommittee report on HB 3, Lt. GovernorDavid Dewhurst said, “When hurricanesstrike, Texans want to know that theirhomes and businesses are protected.Passing the TWIA bill – on the eve ofhurricane season – will help protect ourcoastal policyholders, while preventinglawsuit abuse, promoting greater oversightand transparency and improving theoverall solvency of the fund.”
The Senate adjourned sine die around 3:30on Tuesday afternoon. Before leaving,Senators re-elected Senator Mike Jackson(R-LaPorte) as President Pro Tempore of
the Texas Senate. And, prior toadjournment, Lt. Governor DavidDewhurst said, “I want to congratulate allof our Members, Speaker Straus, andGovernor Perry on one of the mostconservative sessions in Texas history. Ihave enjoyed working together to makeTexas an even better place to live, workand raise a family. When you consider thechallenges we faced – particularly with thebudget – it’s remarkable that we were ableto get so much done. We have provenonce again there is no limit to what we canaccomplish when we put Texans first.
Accomplishments of the 82nd Session of
the Texas Legislature include:
• Balancing the budget without raisingtaxes
• Reducing current state spending byalmost $15 billion
• Saving nearly $6.5 billion in our RainyDay Fund
• Increasing state funding for publicschools by almost $4 billion
• Passing a historic ‘Loser Pays’ tortreform law to reduce frivolous lawsuits
• Passing landmark, free marketinitiatives to improve health care andreduce costs
• Enacting a strong Voter ID law toprotect the integrity of our elections
• Providing pregnant women theopportunity to see a sonogram of theirunborn child
• Protecting the Second Amendmentrights of gun owners
• Redrawing Texas House, Senate andCongressional Districts for the nextdecade
• Creating an Instructional MaterialsAllotment for school districts
• Providing flexibility for school districtswith their management and operations
• Reforming Texas Windstorm InsuranceAssociation and limiting lawsuit abuseand protecting coastal property owners"
HOUSE – Last Monday, the Houseadopted the conference committee reportson SB 2 by Senator Steve Ogden (R-Bryan) and Representative Jim Pitts (R-Waxahachie), a supplementalappropriations bill; SB 6 by SenatorFlorence Shapiro (R-Plano) andRepresentative Rob Eissler (R-TheWoodlands), which combines the textbookfund and the technology allotment fundinto a new instructional materials fund; SB7 by Senator Jane Nelson (R-FlowerMound) and Representative John Zerwas(R-Fulshear), which makes severalchanges that improve efficiencies in healthand human services delivery; and SB 8 bySenator Florence Shapiro (R-Plano) andRepresentative Rob Eissler (R-TheWoodlands), which gives school districtsflexibility on personnel and other matters.
All but two House Democrats votedagainst the conference committee reporton SB 2 and all of the House Democratsvoted against the conference committeereport on SB 8.
The House debated and gave preliminaryapproval to HB 41 by David Simpson (R-Longview), which would classify intrusivetouching used in searching personsseeking access to public buildings andtransportation as official oppression.
On Tuesday, May 29, it looked like thespecial session was going to blow up whenthe House took up the conferencecommittee report on SB 1 by SenatorRobert Duncan (R-Lubbock) andRepresentative Jim Pitts (R-Waxahachie),the fiscal matters bill – the specialsession’s most important piece oflegislation. The Senate had alreadyadjourned sine die. The motion to adoptthe conference committee report initiallyfailed by a vote of 64 to 79 with 32 of theHouse Republicans voting against it, andfour Republicans were absent. TheRepublican Caucus retreated to theAgriculture Museum to try to salvage thebill. When they returned, RepresentativePhil King (R-Weatherford) made a motionto reconsider the vote by which theconference committee report on SB 1failed, and it was finally passed by a voteof 80 to 57 (16 Republicans switched to“yes”).
Also on Tuesday, the House scrambled tofigure out a way to pass the TSA intrusivetouching bill after the Senate had vacatedthe building and was not available to acton any measures the House sent over tothem. The House version, HB 41, was onthe House calendar for third reading. TheSenate had passed SB 29 beforeadjourning, so it was quickly referred tothe House Criminal JurisprudenceCommittee. The Chairman,Representative Pete Gallego (D-Alpine)asked the House to suspend the rules inorder for his committee to have a formalmeeting to consider SB 29 and pass it outso it could be substituted for the House billon Wednesday. The House also passedHCR 5 by Representative Linda Harper-Brown (R-Irving) urging Congress to takeappropriate action to ensure acceptabletreatment of the public by personnel of theTransportation Safety Administration.
Last Wednesday, the House concurred inSenate amendments to HB 79 byRepresentative Tryon Lewis (R-Odessa)and Senator Robert Duncan (R-Lubbock),the fiscal matters bill streamliningoperations of the judiciary.
The House also had almost two hours ofdebate, parliamentary procedures, and anemotional personal privilege speech inregard to SB 29 by Dan Patrick (R-Houston) and David Simpson (R-Longview), the intrusive touching bill.First, the House reconsidered the vote bywhich HB 41, the House version, passed tothird reading to get it back to secondreading. Then, SB 29 was substituted forHB 41. The House debated and passed SB29 to third reading by a vote of 106 to 27.Then, the motion to suspend theconstitutional rule requiring bills to beread on three several days requiring a four-fifths vote failed 96 to 26, with 26 absent.It fell 24 votes short. RepresentativeSimpson followed that with a personalprivilege speech lamenting the bill’sfailure and promising to keep up the fight.Representative Garnet Coleman (D-Houston) led the House opposition to SB29. He characterized the legislation as“designed to criminalize the pat downprocedures that TSA agents use to ensurethe safety of air passengers.”
Representative Fred Brown (R-CollegeStation) said a tearful farewell to hisHouse colleagues and announced that hewill be resigning after 12 years in theHouse and moving to Salado to take a newjob in Temple. Representative WarrenChisum (R-Pampa) also said goodbye tohis fellow House members but promised tosee them on the campaign trail during hisrace for the Railroad Commission.
The House adjourned sine die around12:30 on Wednesday. Prior to adjourning,Speaker Joe Straus commended Housemembers for 170 days of hard work anddeclared the conclusion of the two sessionsto be very successful and productive,though difficult legislative sessions. Hethanked the members for working hard ina responsible and responsive way,representing the interests of every Texan.
The Speaker listed important
accomplishments from the 82nd
Session:
• “Balanced 2012-13 biennial state budgetthat uses no new taxes, is fiscallyresponsible and lives within our means.
• Provided $1.6 billion more dollarsdirectly to our state’s public schools, a5.6% increase in state funding.
• Reduced All Funds spending by over $15billion from the 2010-11 budget.
• Passed all four redistricting mapsrequired this year.
• Promoted accountability andtransparency in state government and inhigher education and passed majorsunset legislation including neededchanges to the Texas Youth Commission.
• Reformed and updated the TexasWindstorm Insurance Association toprotect homeowners along the TexasCoast.
• Protected the voting rights of militarypersonnel who serve our country in thearmed forces.
• Passed Governor’s emergency itemsincluding private property protection,sonogram legislation, tort reform thatfurther curbs lawsuit abuse, and Voter IDlegislation that protects the integrity ofthe ballot.”
82nd Legislature
si·ne die: adv: without any future date beingdesignated (as for resumption): indefinitely ‘the meetingadjourned sine die’
Builders Outlook4 JULY 2011
We are in the middle of the summer
months and time is flying by. Some things
that I'd like to point out about where we
stand today I think are in order.
Our Association continues to work hard
to keep you in business. This is not just the
builders that I'm talking about, because as
you know if your business depends on new
home construction or remodeling then you
are affected as well. Locally the City of El
Paso held elections for four city
representative seats. The Build PAC
interviewed and met with candidates to try
to find those who would have an open door
for us, consult with us and make every
effort to work with us. The results are
gratifying in that we feel that returning
incumbents Ann Morgan Lilly and Eddie
Holguin will continue to bring some
reason to council, while newcomers
Cortney Nilland and Dr. Mike Noe will
take a fresh look at our issues. The new
dynamics of the council should allow us to
be included in discussion prior to actions.
The last couple of months have seen the
council develop some very restrictive
ordinances and implementation of their
version of smart code development. In
addition we continue to work to reduce the
restrictive bond placed on contractors by
the city.
At the state level our TAB lobby team
has done really good work keeping the anti
builder forces from making new laws that
would restrict home building. Overall the
work we did at the state kept fire sprinklers
off the agenda; kept new taxing from
taking off; and overall kept Texas a builder
friendly state. In all we feel that the
savings from new rules not being made
into law saved builders millions of dollars
and kept consumers safe.
Nationally we continue to work hard to
keep the mortgage interest deduction in
place. The federal government is looking
for ways to pay back all those loans to wall
street at the expense of the home buying
public and the home builders. If this
legislation goes through it could signal the
absolute last nail in the coffin for many
builders across the country. The latest
economic numbers confirm that without
home builders and remodelors this
recession will not end. The struggle will
continue this year as NAHB takes that
fight to the hill for us.
Locally we have had some internal
changes as well. As you may recall Del
Huitt had come on board during the
transition late last year as Vice President.
He did a great job for us and announced
that he was going into a different business.
The bylaws made the next step easy for us
as Frank Arroyos steps into the VP slot for
the remainder of the year and Edmundo
Dena from Accent Homes joins us as
Secretary Treasurer. In December Frank
will ascend to President, Mundo to VP and
another builder member will be asked to
get on the ladder. I will move to Past
President, something i look forward to.
Membership is critical to our success as
an association, and I want to thank all of
you who are members in good standing.
Our job is to bring your voices together for
a common good, to keep the new home
building business going in El Paso. Like
other groups there will be those who step
up and get involved and others who just
don't get it. I'm asking you to keep
growing the association by inviting others
to join, get involved, and have a good time
doing so. The EPAB is effective and is
moving forward.
Greg
Bowling
President,
El Paso Association
of Builders
President’s Message
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Builders Outlook6 JULY 2011
In the beginning of 2011 the Executive
Team put together a strategic plan and in
doing so tried to lay out the grid for the
upcoming year. Here are some things that
we targeted and where we are at today.
• Retain membership. As of today we
have lost year to date down about 15-20%
due to many factors. Our bylaws say that
a membership is suspended if there is a 90
day account outstanding. We were
carrying too many beyond 90 days, but
through collections efforts we continue to
make headway against our aging report.
We had to place a lot of bad debt as
uncollectable but the efforts for collection
continue to pay off.
• Hold a Parade of Homes. A valiant
attempt to hold one in late October of this
year was cancelled because we were
looking at delays into the holiday season.
Instead we will go forward with a
Treasure Tour of Homes, showcasing
model homes, spec homes and vacant
lots. We are pushing for a late August
early September date.
• Effective change in the city council.With the varied group of candidates that
jumped into the election the hardest thing
the Build PAC had to do was ensure that
business friendly candidates won. Four
seats were contested and the Build PAC’s
contributions were cautiously optimistic.
We feel like we were able to join other
businesses in the hunt for the right city
council mix and as of today we feel good
about the winners.
• Open dialogue with city hall. Our
plan this year was to hold a local Rally
Day at City Hall. That is happening in
July, with the caveat that budget hearings
may push the dates into August. Either
way we are on target to accomplish this
goal
• Reduce the $50,000 permit bondrequirement. With more and more
regulatory control of housing in El Paso
this bond requirement has done two
things: lowered the number of
contractors, roofers, etc. actually getting a
permit registration; and secondly it has
created a new business of renting out
permits. While difficult to prove the latter
all we can say is this: how is it that we
went from nearly 2,800 registered
contractors in El Paso to only
400somethig. Did they just go away, a
“rapture” event of the contractors? No
they didn’t. They are now underground
and someday all of this will have a
negative impact on consumers and the
insurance industry. Just saying.
• Get AD & C financing at the locallevel. The ineptness of Congress to
address the housing finance crisis is
going to critical mass. Washington
doesn’t seem to understand that as
housing goes, so goes the country. Our
association, along with the thousands
across the country has urged Congress to
address housing issues in a proactive
manner. We must defeat the attempt to
kill mortgage interest deductions. Our
local banks, credit unions, and mortgage
companies have joined in the fight.
• Stabilize the leadership. Del Huit
stepped in as Vice President at a critical
time, as did Frank Arroyos. Now
Edmundo Dena joins Frank and President
Greg Bowling on the executive board.
Del helped stabilize the executive and
now we have in place leadership for the
next three-five years.
• Work on the 2009 IRC and work on
the proposed “smart Growth initiative”.
Our volunteer team took more than four
months of hard work with city officials to
make the 2009 IRC work in El Paso. The
new codes were implemented with those
recommendations included. Untold
savings to local contractors. Secondly the
EPAB was able to demonstrate the harm
in the recommended set back
requirements sought by the City. It would
have meant that all current floor plans
would have become obsolete. Estimated
savings in the millions of dollars to local
builders.
The El Paso Association is half way
through the year and more changes and
challenges are coming. We don’t act on a
single issue on behalf of a single member,
but rather we bring a collective voice to
the forefront of issues facing the industry.
Our second half will be exciting to be
involved in. We stand ready to work hard
to earn your trust and membership.
EPAB on track for achieving 2011 goals an beyondPerspective
Ray Adauto,Executive Vice PresidentEPAB
4655 Cohen • El Paso, Texas • 79924 • 915-821-3550 • www.tropicanahomes.com
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Builders Outlook 7JULY 2011
The 82nd Regular Session of the Texas
Legislature is over and now the special
session is winding down very quickly. For
builders, there were not a lot of issues that
come to my mind that warranted comment
from your lobby in Austin. We did work a
bit with the state association on
Representative Marquez's bill relating to
building codes in the unincorporated areas
of counties.
Other than that bill, it seemed to be a
quiet session for your profession as far as
regulation was concerned.
Both the regular and special sessions
will have consequences that are adverse to
your profession in other ways. Like all
businesses, yours depends on consumers
who are not apprehensive of spending. So
many actions by the legislature will
dampen the enthusiasm of consumers.
No one can argue against the fact that
our economy was in bad shape during the
past two years. Many have said that the
leadership failed to address the slow
economy in 2009 which created an even
bigger problem this session. In addition to
that failure, some state leaders have
complained about the reluctance of the
legislature to raise revenues during this
session. The point being that cutting
spending was not the only alternative to
balancing the budget.
But, it was the policy of the conservative
leadership to focus on cutting spending
only and not raising revenues. Initially,
huge chunks were taken from the budgets
affecting healthcare for the less fortunate
and mental health and retardation.
Common sense finally prevailed and these
areas were assessed cuts that were much
less harsh. Still, there will be Texans who
suffer and who eventually will end up in
the emergency rooms or in jail. As with all
of the cuts, the responsibility will
eventually be dumped on local taxpayers.
The final budgets have a tremendous
impact on two groups of consumers:
teachers and state employees. Previous
estimates from very reliable sources
indicated that as many as 100,000 state
funded employees would lose their jobs in
Texas. This is because the cross hairs were
placed squarely on teachers and state
employees.
While the amending process may have
reduced the actual number, placing tens of
thousands of wage earners out of work will
stop any improvement in the state
economy. School districts have already
released many teachers.
If the estimates for job losses are
correct, take the 100,000 and multiply that
by $50,549 which is the average annual
income for Texans. We are affecting a
potential $5,054,900,000 in consumer
spending. That amount, if it turns over
three to five times, may take out between
$15.2 billion and $24.3 billion from the
economy.
With respect to your profession, how
many people will lose their home to
foreclosure or be forced to sell their homes
at a loss? In either case, the average price
of homes will suffer.
This is the same scenario we faced two
years ago when your production numbers
decreased significantly. The numbers used
are, honestly, a worst case scenario. There
was plenty of argument against the
budgets as presented just based on the
impact upon our economy. That seemed
the only hope as the leadership did not
show a tendency toward compassion.
Actions by the legislature will dampen the enthusiasm of consumers
Chente Quintanilla
State Representative
Guest Perspective
EPAB ON THE SCENE
JUly 2011
Vegas Baby!The El Paso Association of Builders traveled to
Las Vegas for the first annual general meeting onJune 10. The trip was planned by SamShallenberger from Western Wholesale Supplywho thought it was time for the Association to do afun event. Nothing could be better than traveling toLas Vegas and enjoying three days of great food,beautiful hotels and of course the opportunity forgaming. Our host hotel was the fabulous ParisHotel on the Vegas Strip. Accommodations weremade available through Sun Travel of El Paso.Isabelle Caballero coordinated for us there andwe’d like to thank her for a great job. Some of themembers booked on their own, but one thing wehad in common was a private back stage tour ofBally’s Jubilee show, where we learned it’s just nota pretty face that gets you the chance to be in it.Since 1981 Jubilee has entertained hundreds ofthousands of visitors with the fancy expertise ofbeautiful dancers and extreme sets. A surprise wasto learn that the stage is also the setting for the Priceis Right TV game show. Some of our membersreally wanted a chance at Panko, but because ofrestrictions that wasn’t available. Still seeing thesets, the costumes and all the work that goes into theshows we came away with a better understanding ofwhat Jubilee is. Our hostess, Lara, is a trained bal-lerina with years of dance experience. Her cos-tumes cannot be altered for her; rather she mustalter her body to fit in them. After all a $50,000 cos-tume can’t be built every day for any showgirl! Ourmeeting was held immediately after the tour. We’dlike to thank all those who went to Vegas with us,but we won’t reveal who they were. What and whowas in Vegas stays in Vegas. Or you can look at theattached pictures to figure that out yourself. Welook forward to another great Vegas trip next year.
Builders Outlook10JULY 2011
Help Get HBI
Certification
Approved For
Your School
District
The Home Builders Institute’s
(HBI) educational materials for high
schools and two-year programs are
designed to bring increased
professionalism, competency and
effectiveness to those entering the
residential construction workforce.
“Certification” is the current buzz
word and is a must to receive
various types of funding in many
secondary, community college and
technical training programs.
In many schools, the goal of
Career and Technical Education
(CTE) programs is to provide
students with credentials and
certifications which are recognized
and valued by industry partners.
However, in districts across the
country, the HBI/NAHB certification
is not on their approved list of
certifications. HBAs and NAHB
members are crucial in helping to
address this problem and
strengthen the industry’s future
workforce through schools in their
communities.
Involvement in CTE programs by
industry professionals should be
happening nationwide. HBI has
industry certification available for
students using the Residential
Construction Academy (RCA) series
of textbooks. Based on national skill
standards set by NAHB industry
professionals and educators, we
have launched student certification
for high schools, post-secondary
institutions and adult training
centers. The online assessments
are available for Basic Principles for
Construction, Carpentry, Facilities
Maintenance, House Wiring and
HVAC. Certification testing is
offered at three proficiency levels,
entry, semi-skilled and skilled. The
student certification assessments
reinforce HBI’s commitment to
assist the industry in preparing a
knowledgeable and productive
workforce.
Help get HBI/NAHB certification
added in Texas. Please contact
Deanna Lewis at 202-266-8927
" m a i l t o : d l e w i s @ h b i . o r g "
dlewis@hbi.org for further guidance
on how to work with your local
school district.
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Builders Outlook JULY 2011 11
Home building is one of the most
regulated industries on earth, and anewly
published NAHB study helps confirm
this unfortunate fact. Regulations come
in many forms and can be imposed by
governments at different levels. At the
local level, jurisdictions may charge
permit, hook-up, and impact fees and
establish development and construction
standards that either directly increase
costs to builders and developers, or cause
delays that translate to higher costs. State
governments may be involved in this
process directly or indirectly.
Several states, for example, have
adopted state-wide building codes. And
although impact fees are imposed by
local governments, such fees typically
cannot be imposed without enabling
legislation at the state level. The federal
government can also impact the price of a
home—for example, by requiring permits
for stormwater discharge on construction
sites, which may lead to delays in
addition to the hard cost of filing for a
permit. These are only a few examples of
regulations that builders and developers
encounter in practice. NAHB's study, How
Government Regulation Affects the Price
of a New Home, provides estimates of the
impact that such regulations have on the
price of a home. And those estimates are
truly eye-opening; they indicate that, on
average, regulations imposed by
government at all levels account for
25.0% of the final price of a new single-
family home built for sale. Nearly two-
thirds of this -- about 16.4% of the final
house price -- is tied to higher costs
associated with the finished lot due to
regulations imposed during the lot’s
development.
A little over one-third -- 8.6% of the
house price -- is the result of costs
incurred by the builder after purchasing
the finished lot. The study points out that
the relatively high share of regulatory
costs affecting a home during its
development are particularly significant
in the current environment, when there is
a low level of developed land in the
pipeline. Thus, in most cases the full
range of regulatory costs—those that fall
on development as well as construction—
will need to be overcome if production
and employment in the housing industry
are to get back on track. For more
information, contact study author _Paul
Emrath_ (mailto:pemrath@nahb.org) at
800-368-5242, x8449.
NAHB study examines
government’s impact on price of
new homes
Builders Outlook12JULY 2011
YouR
Plumbing SupplySource in El Paso
44330000 RRoossaa SStt..EEll PPaassoo,, TTXX 7799990055
((991155)) 553322--33991177 •• FFaaxx:: ((991155)) 553322--33991199
� executive officers
Greg bowling, President
Tropicana Homes
frank arroyos, vice President
Cisco Homes
edmundo dena, secretary/treasurer
Accent Homes
sam shallenberger, associates council
Wholesale Supply
Kelly sorenson, immediate Past President
Vision Consultants
ray adauto, executive vice President
El Paso Association of Builders
� couNcil/committee cHairs
Affordable Builders Council Bobby Bowling IV
Associates Council Sam Shallenberger
Assoc. Co-Chair Lance Van Demon
Build PAC El Paso Randy Bowling
Desert Green Building Council Javier Ruiz
Industry Promotions Kelly Sorenson
Land Use Council Linda Troncoso
Sal Masoud
Adams Pro AM Committee David Bogas
Young Designer Award John Chaney
Home Show Sam Shallenberger
Remodelors Rudy Guel
Membership Drive Mike Santamaria
Finance Committee Kathy Carillo
Education Committee Frank Spencer
� advisorY to tHe board
J. Crawford Kerr, Attorney, Firth, Johnson
& Martinez
� board of directors
John Arranda, Southwest Securities Bank, FSB
Joe Bernal, Joe Bernal Insurance
David Bogas, EPT Communities
Doug Borrett, Karam Co.Edmundo Dena, Accent Homes
Ted Escobedo, Snappy Publishing
Art Garcia, El Paso Door
Juanita Garcia, ICON Custom Home Builder,LLC
Lorraine Huit, Cardel Design Group
Walter Lujan, Dawco Home Builders
Bruce Meyer, JDW Insurance
Robert Najera, Roberts Construction
Kathy Parry, Hunt Communities
Bob Paschich, Oeste Homes
Kathy Rose, Builders Source
Regina Sanchez, Bank of Texas
Sam Shallenberger, Western Wholesale
Frank Torres, GMF Homes
Paul Zacour, Zacour & Associates
� tab state directors
Doug Borrett, Karam Co., Life Director
Randy Bowling, Tropicana Homes
� NatioNal directors
Bobby Bowling IV.
Demetrio Jimenez
2010 builder member of the Year
Mike Santamaria
Mountain Vista Builders
2010 Pat cox award
Randy Bowling
Tropicana Homes
2010 associate of the Year
Javier Ruiz
Border Solar/Senercon
John schatzman award
Lorraine Huit
Cardel Design Group
Honorary life members
Brad Roe
Cliff Anthes
Wayne Grinnell
Chester Lovelady
Don Henderson
Anna Gil
Past Presidents
committed to serve
ePab mission statement:
The El Paso Association of Builders is a federat-
ed professional organization representing the
home building industry, committed to enhancing
the quality of life in our community by providing
affordable homes of excellence and value.
The El Paso Association of Builders is a
501C(6) trade organization.
© 2011 Builder’s Outlook
is published and distributed for the
El Paso Association of Builders
by Snappy Publishing
240 Thunderbird • Suite C
El Paso • Texas • 79912 915-820-2800
6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038
Mark Dyer
Mike Santamaria
John Cullers
Randy Bowling
Doug Schwartz
Del Huit
Herschel Stringfield
Robert Baeza
Bobby Bowling, IV
Rudy Guel
Anna Gill
Bradley Roe
Bob Bowling, III
EH Baeza
NatioNal associatioN of
Home builders
(800) 368-5242
texas associatioN of
builders
(800)252-3625
www.elpasobuilders.com
July 13
Associates Council meeting
12 Noon
EPAB Offices
July 19
Bowl –A-Thon
12 Noon
Bowl El Paso
11144 Pelicano
July 27
Land Use Council meeting
12 Noon
EPAB Offices
August 10
Board Meeting 11:00
General Meeting
12 Noon
El Paso Club
August 30
Adams Golf Pro Tour
Series
Painted Dunes Desert Golf
Course
NEW MEMBERS
RENEWALS
SODA SPONSOR
Casa De Leon, LLC
Nick Bombach
501 N. Kansas St., Ste. S-201
El Paso, TX 79901
915-231-1812
Builders Outlook 13JULY 2011
UPCOMING EVENTS
Thanks to our
JULY SODA
SPONSOR:
Carefree Homes
Membership News
11395 James Watt, Suite A-11 79936915-633-8002
El Paso Building Materials
Bella Vista Custom Homes,
Inc.
Builders Source Inc.
Moscato Homes
Bank of America
Home Loans
Cullers and Caldwell Builders
E. C. Plumbing Inc.
Border Solar
BSH Corporation/
Thermador
Loretta Blankenship, CPA
Castillo Electric
A & A Air Conditioning, Inc.
New Start Insulation
Southwest Alarm Services
CMF Enterprises, Inc.
Kitchens & Bath Cabinets by
Centro Solutions LLC
6046 Surety Dr • 915-778-5387 www.elpasobuilders.com
Bowl-A-Thon!Tuesday, July 19 at Bowl El Paso11144 Pelicano Registration at Noon Bowling starts at 12:304 man teams$25.00 per person includes lunch and shoesWe need raffle prizes (gift cards etc.)Lane sponsors Call 778-5387 Today Daddy-O!
Associates CouncilHi everyone I hope everyone had a safe and
fun filled 4TH of July weekend. Speaking of
fun Las Vegas was a BLAST. We had a back
stage tour of Jubilee the oldest running old
time show in Las Vegas. I was so cool to see
how everything works. I hope we can make
this a yearly event because there were over
twenty of us and I think everyone had a great
time.
The Build N Bowl outing is just around the
corner and we have twenty four lanes reserved
at Bowl El Paso so put your team together
Bowling starts at 12:30 . There will be raffle
prizes, food and sodas all for twenty five
dollars a head. It will be hot outside and what
a wonderful way to spend a HOT July
afternoon.
The Adams Golf EL Paso Desert Open Pro
Am presented by the El Paso Association of
Builders will held on August 30th this is a
opportunity to play with the PGA TV pro’s of
the future. We have some great sponsor
opportunities available if you are interested
please contact Ray at 778-5387.
Last but not least is our associate council
meeting to be held on July 13th at 11:45. If you
want lunch please Call Angie at the office and
give her your credit card number. The meeting
will start at 12:00 and I promise it will be over
by 1:00.
See you all at the meeting.
Builders Outlook14 JULY 2011
Industry Reports
Sam Shallenberger
Western Wholesale
Supply
REALTOR/Builder
Fit a Small Office in
Your Small HomeBy: Terry Sheridan
1Setting up a small office in your
small home means finding new uses for
closets and other tucked-away spaces.
You can also get creative by making
rooms do double duty.
1. Kitchen helper. From a $400 store-
bought island for bill-paying to a
breakfast bench nook with file drawers
built in under the seats (cost: $5,000 to
$15,000), your kitchen is a treasure trove
of small office possibilities. Even a slide-
out cutting board (about $500 in a cabinet
package) can serve as a nifty desktop.
2. Closet conversion. Get rid of
unused stuff or consolidate it in another
area, and a 3- to 8-foot-wide closet
accommodates a built-in desk, shelves,
and lighting. Make a nearby chair do
double duty for your desk.
With doors and wiring for lighting and
a phone, and possible added drywall,
your new small office would cost $2,000
to $4,000. Keep in mind that the more
floors and walls that wiring has to travel
through, the costlier it gets.
3. Porch possibilities. Convert that
long, narrow space on the side of your
small home that gets only seasonal use to
a year-round office for about $15 per
square foot. Use plug-in space heaters
and fans for your HVAC system.
Use inexpensive, freestanding shelves
to provide storage space. Cost: About $70
for a 30-by-80-inch bookshelf.
4. Those out-of-the-way spaces.
Alcoves, lofts, stair landings, basement
and garage corners, and bedroom nooks
qualify as potential office space. Use
freestanding shelving units and
bookcases. Plants or privacy screens can
“wall” the area without making it feel
smaller.You can build a bench for visitors
with storage space inside for about $130.
Want a craftsman to build it for you? Add
another $300 to $400.
5. Under-used dining rooms. Formal
dining rooms can be overrated. If yours
isn’t being used regularly, convert it to a
small office. You’ll be close to your main
entry, making it easy to receive clients
and business associates. If a nearby
kitchen or other busy household area is a
noisy distraction, install French or sliding
doors as acoustic barriers.
Fostering harmony amongst home
builders, real estate professionals, and
affiliate companies
Angela Ochoa
GEPAR
TAB MeetingThe Texas Association of Builders held
three days of meetings in Houston for thefirst time in several years. The overallresults from the 82nd Legislaturedominated the talks and various issuessurrounding our lobbying efforts.Successful lobbying led to housing victoriesfor the most part, but the continuing statebudget woes will impact our future effortsfor sessions to come. TAB President RandyBaird of Houston resigned for personalreasons and the board moved the ladder upuntil the next meeting when new electionswill take place. The SunBelt show will be inAustin rather than Grandprairie this yearand booth sales have already doubled froma year ago. El Paso Association has thehighest percentage of contributions to quotaof any HBA in the state, eventhough only afew members made contributions. More onthat in another column. Attending for theEPAB was Greg Bowling, Randy Bowling,Bobby Bowling, and Ray Adauto.
EPAB ON THE SCENE
Board Meeting
The EPAB Board of Directors met to get
an update on the recent meetings held in
Houston for the Texas Association of
Builders. The most critical issues were
identified and reported to the Board by
President Greg Bowling. Over 144 bills
were targeted by TAB as the ones most
likely to impact housing in Texas and most
were either defeated or never went for
votes. Key issues will continue to dog the
industry in the 83rd legislature due to
extreme financial conditions at state
government. New builder contracts will be
available in September to members in good
standing. In other news the Board approved
the move of Frank Arroyos to Vice
President and Edmundo Dena to Secretary
Treasurer. Past President Del Huitt stepped
down after deciding to enter into his new
venture and away from home building. The
Board also approved a motion to clear out
the membership list of those companies
who have failed to renew or have resigned.
A committee was set up to cleanse the A/R
list and report back to the Board in August.
EPAB ON THE SCENE
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