builders outlook 6.12

Sales of newly built, single-family

homes rose 7.6 percent to a seasonally

adjusted annual rate of 369,000 units in

May, according to newly released data

from HUD and the U.S. Census Bureau.

“The relatively strong increase in new-

home sales this May is an indication that

more potential home buyers are being

drawn to the market by today’s excellent

mortgage rates as well as firming

conditions in some local economies,”

said Barry Rutenberg, chairman of the

National Association of Home Builders

(NAHB) and a home builder from

Gainesville, Fla. “In addition, more

people are recognizing the benefits that

new homes can provide beyond what’s

available in the existing housing stock in

terms of energy efficiency, updated

technology and other features.”

“May’s sales report is a welcome sign

that the market has returned to a more

solid growth path following lackluster

reports in March and April, and is in

keeping with our expectations for

continued, steady improvement through

the end of this year,” said NAHB Chief

Economist David Crowe. “While the

current sales rate remains low by

historical standards and continues to be

constrained by challenges related to

credit availability for builders and faulty

appraisals, the ongoing decline in the

month’s supply of new homes will

necessitate additional construction in

certain markets going forward.”

Regionally, new-home sales were

mixed in May. While the Northeast and

South posted solid gains of 36.7 percent

and 12.7 percent, respectively, the

Midwest and West posted respective

declines of 10.6 percent and 3.5 percent.

The inventory of new homes for sale

was almost unchanged at a low level of

145,000 units in May, reflecting a

historically slim, 4.7-month supply at the

current sales pace.

Single-Family Housing StartsRise 3.2 Percent in May

Single-family housing production

increased for a third consecutive month

and builders pulled more permits for both

single- and multifamily construction in

May, according to newly released figures

from HUD and the U.S. Census Bureau.

The data reveals that the seasonally

adjusted annual rate of single-family

housing starts rose 3.2 percent to

516,000 units – the best pace since

December of 2011.

“Today’s report is a good sign that

builders are cautiously moving to

replenish their depleted inventories of

single-family homes in response to

increasing buyer demand,” said Barry

Rutenberg, chairman of the National

Association of Home Builders (NAHB)

and a home builder from Gainesville, Fla.

“In certain housing markets across the

country, the momentum toward recovery

is gradually building, though tough credit

conditions and inaccurate appraisal

values continue to weigh down that

progress.”

“The latest data provides evidence of

the kind of slow but steady growth that

we expect to see in housing production

through the end of the year, and shows

that housing continues to regain strength

regardless of some weakening in other

parts of the economy,” said NAHB Chief

Economist David Crowe. “Particularly

encouraging are the gains in permit

issuance posted in both the single-family

and multifamily sectors in May, which are

indicative of builders’ intentions to start

new projects in the coming months.”

While overall housing starts posted a

4.8 percent decline to a seasonally

adjusted annual rate of 708,000 units in

May, all of the decrease was on the more

volatile multifamily side. Single-family

starts rose 3.2 percent to 516,000 units

as multifamily starts declined 21.3

percent to 192,000 units.

Regionally, dips on the multifamily side

drove down combined housing starts in

all but the West, which registered a 14.4

percent gain. The Northeast, Midwest

and South posted declines in total

housing starts of 20.3 percent, 13.3

percent and 6.1 percent, respectively.

However, strong gains in new

permitting activity for both single-family

and multifamily homes drove the

combined permitting number for May up

7.9 percent to a seasonally adjusted

annual rate of 780,000 units – the

strongest pace since September of 2008.

Single-family permits were up 4.0

percent to 494,000 units (best pace since

March of 2010) while multifamily permits

gained 15.3 percent to 286,000 units.7

Three out of four regions posted gains

in combined permit activity in May. The

Midwest, South and West posted gains

of 6.1 percent, 11.1 percent and 10.5

percent, respectively, while the Northeast

registered an 8.0 percent decline.

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www.elpasobuilders.com www.epbuilders.org

2012/6

New-HomeSales andStarts onthe rise

DIGITAL EDITION

In a special visit by Congressman “Quico” Canseco, R,

Texas District 23, members of the association were able to

have concerns heard and offer suggestions to the legislator.

Canseco, whose district encompasses a land mass from

San Antonio to East El Paso along the border made his first

visit to the EPAB on Friday, June 22. Members were invited

to the event to show the Congressman concerns with how

Congress and other Federal agencies were either helping or

hurting new home construction. The Congressman offered

no hold barred replies to questions and concerns from the

audience. “I believe that the Federal Government is in many

ways a hindrance to the private sector, but I also understand

the need for government involvement in order to keep a

balance” he said with respect to a question on overzealous

agencies within the federal authority. “Make no mistake, I

fight for home builders every day, and I understand that we

need to allow builders to build and not put more roadblocks”

Canseco said.

Questions from the members ranged from immigration to

the EPA authority and Mr. Canseco took each question and carefully and diligently answered each question put

forward. “I have no doubt that we could use a larger number of elected officials like the Congressman at all levels

of government”, said Bobby Bowling IV. His opinion was echoed by others in the audience including President

Frank Arroyos and Vice President Edmundo Dena. “It was refreshing to hear from a Congressman that he

understand our concerns and the plight of home building in the country,” Arroyos said. “I was impressed with his

common sense answers and thorough knowledge of issues beyond housing,” Edmundo Dena said.

No one was more impressed than Sam Shallenberger who called the visit one of the most important events for

the association. “I think that Congressman Canseco has a great grasp of what we as business people go through

each day, and he said the right things to the right people. I thought this was one of the best meetings I’ve ever

been in with an elected official, certainly a real treat when the intelligence is translated to common sense”, Sam

said. “It truly was a great meeting,” said Anthony Mullen of MTI Ready MIX.

The EPAB presented the Congressman with a logoed association shirt and a cold weather jacket. “I will take

a picture of me in this (the jacket) in front of the Capitol and send it to you,” the Congressman told the crowd. The

association will continue to meet with the Congressman on a regular basis in order to ensure our issues are in

front of him.

See more photos of this event on page 8

Congressman visits El Paso Builders

The latest data providesevidence of the kind ofslow but steady growth thatwe expect to see inhousing production throughthe end of the year, andshows that housingcontinues to regain strengthregardless of someweakening in other parts ofthe economy.”

-David Crowe.NAHB Chief Economist

2 Builders Outlook 2012/6

I want to thank the membership drive teams

and captains for the hard work getting us the

98 new members. Nothing compares to

having new members get involved and going

with the association. I ask that our seasoned

members welcome the new crew and mentor

them to success. This is a momentous time in

our recovery as housing gets rolling again. We

must remain vigilant to the upcoming elections

and ensure that industry friendly candidates

get elected, and if any of the candidates needs

info in the importance of housing we can

accommodate that.

It was a real treat to have had Congressman Francisco Canseco visit us. We have a true

housing friend who is watching out for new construction. Thanks to Bobby Bowling IV for getting

us that visit.

As I write this, several of us are preparing to attend the NAHB summer meetings in

Washington D.C. Several issues will be discussed with our area Congressmen and U.S.

Senators. Recent trends in the economy indicate that the recovery is fragile in many parts of the

country. In discussions about changes to the tax code NAHB encourages Congress to pass

comprehensive GSE reform Legislation that both protects the American tax payer while

ensuring a safe and sound means of providing a reliable flow of housing credit. Also in

discussion are about changes to the tax code, NAHB encourages Congress to take the right

approach to foster economic growth and not harm job creation and recovery in the construction

industry. This includes protecting the mortgage interest deduction (MID); the Low Income

Housing Tax Credit (LIHTC), which supports rental housing: the capital gains exclusion: and the

deduction of property taxes amongst others. Congress should oppose any changes to the tax

code that would increase taxes on homeowners, renters or home builders. We are blessed to

work and live in a great real estate market. Let’s continue to keep it that way!

President’s Message |

El Paso Disposal

772-7495

32012/6 Builders Outlook

Frank

Arroyos

President,

El Paso Association

of Builders

The irresponsible action of several

past high ranking school district

superintendents casts a giant shadow

on the city of El Paso. Having Dr.

Lorenzo Garcia found guilty of crimes

directly involving the El Paso

Independent School District couldn’t

come at a worse time. EPISD is the

school district most associated with

Fort Bliss and the growth of that post.

EPISD handles hundreds of millions of

taxpayer dollars every year and is one

of the largest if not the largest taxing

entity in the community. The trust of

the taxpayers, families and students of

EPISD has been permanently and

irreparably broken.

The talk from politicos and business

leaders correctly punch at the loss of

trust of not only the highest ranking

employee of the district but the loss of

trust with regard to the board of

trustees and school district

employees. No one can argue that

the elected board has either been

duped by the smartest man in the

world or more than likely never felt like

they would be held accountable for

hiring and allowing so much theft to go

undetected for so long. These

publically elected officials are the

result of voter apathy or voter neglect.

There’s a lot of finger pointing going

on but it’s kind of like what happens

when you point a finger and see three

other fingers pointing back at you.

The sad truth is that school board

positions get elected by the smallest

percentage of voters and even those

voters tend not to really understand

the role of a an elected school trustee.

The sad truth is also that while

taxpayers, employees and more

importantly the students and families

who rely on the EPISD for educating

their children are directly affected so

are other things like housing. How

you ask?

The El Paso ISD stretches from the

Westside to the east, below the

freeway and up north into northeast El

Paso. The land mass that the EPISD

taxes from is massive and diverse.

When new developments are in the

works many of those fall into the

EPISD. With the reports of scandalous

cheating in the classrooms, the indignity

of administrators AND educators

bumping students to avoid testing them

and in the process denying them equal

education success or failure causes

home buyers to worry about their

children and the schooling they will

receive by living in the district. Buying

a new home is impacted by the

schools nearby and their status. No

parent or guardian wants to send a

child to underperforming, cheating,

dirty or unsafe schools. New school

buildings are nothing if the educational

opportunity presented by the

educators, administrators and staff

inside the school and in the district is

corrupt. In the case before us it

appears that many levels of

responsibility and trust were broken.

With that homes in that district may go

unsold for longer periods of time than

homes in other districts. Hundreds of

millions of dollars’ worth of new

construction may sit as buyers

contemplate whether or not to be in

that district. Corruption in the district

causes concern, and indecision

affects sales. It’s tough enough given

the current economy, now developers

and builders have to worry about the

school in their neighborhoods.

Shame on the board. Shame on the

administrators. Shame on the

teachers who sheepishly went along

with the corruption. Shame on the

voters for not taking the time or

investigating the candidates for the

board. As home builders and

suppliers, taxpayers, and parents in

the district we hope that a complete

cleansing of the district is done and

that the other eight districts learn from

this mess. Garcia is not alone in this

corruption and it is incumbent on the

district’s voters to ensure this doesn’t

reappear.

Perspective |

Ray Adauto,Executive Vice PresidentEPAB


School District corruption affects more than students

Housing a victim as well


More than 700 home builders trekkedto Capitol Hill on June 6, 2012, to callon Congress to make housing andhomeownership a national priority andto take concrete steps to get housingback on track in order to create jobsand keep the economy moving forward.

“Though we are seeing some hopefulsigns of recovery in many marketsthroughout the nation, our industry still

faces stiff headwinds,” xzsaid NAHBChairman Barry Rutenberg, a homebuilder from Gainesville, Fla.

Persistently tight lending standardsfor home builders and home buyers,uncertainty regarding the future of thehousing finance system, ongoingthreats to vital housing tax incentives,and overly burdensome regulations arehampering a housing recovery and

keeping countless home building firmsfrom constructing viable projects andhiring new workers, he added.

In more than 250 individual meetingswith their representatives and senators,builders called on their lawmakers to:

Support legislation to restore theflow of credit for new housingproduction. NAHB is urging the HouseFinancial Services Committee toconsider H.R. 1755, the HomeConstruction Lending RegulatoryImprovement Act. Sponsored by Reps.Gary Miller (R-Calif.) and Brad Miller(D-N.C.), the measure currently has 96co-sponsors and would remove barriersto lending while preserving theregulators’ ability to assure the safetyand the soundness of the financialinstitutions they oversee. NAHB isseeking cosponsors for similarlegislation in the Senate, S. 2078, theHome Building Lending ImprovementAct, sponsored by Sens. BobMenendez (D-N.J.) and Johnny Isakson(R-Ga.).

Pass comprehensive legislation toreform housing government sponsoredenterprises Fannie Mae, Freddie Macand the Federal Home Loan Banks thatprovides a federal backstop to ensure areliable and adequate flow of affordablehousing credit in all economic andfinancial conditions.

Preserve current housing taxincentives, including the mortgageinterest deduction and Low IncomeHousing Tax Credit, as the debate ontax reform moves ahead.

Support legislation to make much-needed improvements to theEnvironmental Protection Agency’sLead: Repair, Renovation and Painting(LRRP) rule. Sponsored by Sen. JamesInhofe (R-Okla.), the Lead ExposureReduction Amendments Act of 2012 (S.2148) would offer several reforms toEPA enforcement of the lead paint rule,including reinstating the opt-outprovision to allow home owners withoutsmall children or pregnant womenresiding in them to decide whether torequire LRRP compliance.

Cosponsor House and Senate billsthat would reduce the overreach offederal power under the Clean WaterAct. House bill H.R. 4965, the Preservethe Waters of the United States Act, andits identically named Senate companionmeasure (S. 2245), would prevent theEPA and U.S. Army Corps of Engineersfrom finalizing or implementing theirdraft guidance to expand the reach ofthe Clean Water Act to include virtuallyevery ditch, pond and seasonal runoffditch in the nation.

“In this pivotal election year, it isimperative to ensure that presidentialand congressional candidates on bothsides of the political aisle understandthe importance of housing andhomeownership,” said Rutenberg.“Today, builders from across the landreiterated this message to theirlegislators and reminded them thatthere can be no economic recoverywithout a housing recovery.”

-NAHB

More than 700Builders Call on

Congress to Make Housing andHomeownership a

National Priority


The National Association of Home Builders

(NAHB) today told Congress that the Obama

Administration’s fiscal 2013 budget proposal to

increase multifamily mortgage insurance

premiums (MIPs) would be counterproductive.

Testifying before the House Financial

Services Subcommittee on Insurance, Housing

and Community Opportunity, Bob Nielsen, the

immediate past chairman of NAHB and a

multifamily home builder from Reno, Nev., said

that the need to raise the MIPs in order to

reduce defaults has not been demonstrated and

that the U.S. Department of Housing and Urban

Development has failed to provide an analysis

on how the proposed higher MIPs would affect

borrowers, lenders or renters who live in

properties insured under the programs.

“The proposed increases will not provide a

buffer against future FHA losses because there

is no segregated fund and excess income is

simply returned to the U.S. Treasury each year,”

said Nielsen. “Increases will only add to property

owners’ costs, thereby affecting rents and

discouraging the production of rental housing.”

The proposed MIP increases would hurt

market rate rental properties in the secondary

markets where credit is limited, Nielsen added,

because private capital currently is focusing

lending activities in the strongest markets and

for well-capitalized large developers.

On other issues of concern to the multifamily

community, NAHB urged Congress to:

• Oppose efforts to establish minimum capital

ratios for the General Insurance and Special

Risk Insurance (GI/SRI) Funds before an in-

depth analysis is done.

• Support efforts to fully fund renewals of

Section 8 Project Based Rental Assistance

contracts.

• Back HUD’s legislative efforts to expand the

availability of financing for small multifamily

rental properties and to provide a secondary

market outlet for such loans.

Citing demographic factors, Nielsen said that

FHA has an important role to play in serving the

range of rental housing needs, and its mission

must remain broad to ensure that access to

credit is available in all geographic areas of the

country and under all economic conditions.

During the next decade, NAHB estimates that

the aging “echo boom” generation will result in

demand for between 300,000 and 400,000

multifamily units per year. While the timing of

this demand will depend on the pace of the

economic recovery, the housing needs of these

households will not be postponed indefinitely.

Last year’s 178,000 multifamily housing starts

represented roughly half the units that will be

needed to keep pace with this burgeoning

demand.

“Production of multifamily housing will

undoubtedly increase above the current low

levels,” said Nielsen. “It is important that the

financing mechanisms to support that

production are available and that Congress

ensures that the FHA multifamily mortgage

insurance programs continue to meet the needs

of low- and moderate-income renters.”

Builders Stress Importance of Multifamily

Housing Finance Programs

Student Loan Debt

Crisis Linked to

Lower Home

Values

New analysis of government data by

the National Association of Home Builders

(NAHB) reveals a connection between

rising student loan debt and the onset of

the housing slump, and offers yet another

example of how lower home values have

hurt millions of middle class households

and threatens the fragile economic

recovery.

“The rising student loan debt problem is

another consequence of the housing

downturn,” said NAHB Chairman Barry

Rutenberg, a home builder from

Gainesville, Fla. “As more and more

parents face tighter budget restraints as a

result of lower home values, this is forcing

an increasing number of students to take

out loans for tuition, essentially shifting

some of the burden of paying for college

from parents to students.”

The link between rising student loan

debt and the start of the housing crisis

comes on the heels of a recent report

from the Federal Reserve showing that

U.S. household wealth plunged nearly 40

percent from 2007 to 2010 as a result of

declining home values.

“Together, these findings should serve

as an urgent wake-up call for

policymakers to do their part to ensure a

full-fledged housing recovery moves

forward to restore the balance sheets of

tens of millions of home owning families,

create jobs and spur economic growth,”

said Rutenberg.

To get housing back on track and

provide the foundation for a long-lasting

economic recovery, Rutenberg called on

leaders in Washington to provide access

to mortgage credit for qualified borrowers;

demonstrate their support for the

mortgage interest deduction; support

affordable downpayments for home

buyers; enact reforms in appraisal

practices and oversight to ensure that

appraisals accurately reflect true market

values; and establish a strong housing

finance system that retains a federal

backstop to ensure that standard 30-year

fixed-rate loans and adjustable rate

mortgages remain readily available for

working class households.

“Young Americans need to have the

ability to pay for college in order to

prepare for the jobs of the future,” said

Rutenberg. “Homeownership has

historically generated a thriving middle

class by creating wealth and helping

families to cover higher education costs.

Hard-working American families and the

economy will continue to struggle until we

get housing back on track.”

Builder Confidence

Up One PointBuilder confidence in the market for

newly built, single-family homes gained

one point in June from a slightly revised

level in the previous month to rest at 29

on the National Association of Home

Builders/Wells Fargo Housing Market

Index (HMI), released today. This is the

highest level the index has attained since

May of 2007.

“This month’s modest uptick in builder

confidence comes on the heels of a four-

point gain in May and is reflective of the

continued, gradual improvement we are

seeing in many individual housing markets

as more buyers decide to take advantage

of today’s low prices and interest rates,”

said Barry Rutenberg, chairman of the

National Association of Home Builders

(NAHB) and a home builder from

Gainesville, Fla.

“While the June HMI is in keeping with

our forecast for gradually improving

single-family home sales this year, recent

economic reports that have shown some

weakening in the pace of recovery likely

factored into the marginal gain,” said

NAHB Chief Economist David Crowe. “In

addition, builders across the country

continue to report that overly tight lending

conditions and inaccurate appraisals are

major obstacles to completing sales at

this time.”

Derived from a monthly survey that

NAHB has been conducting for 25 years,

the NAHB/Wells Fargo Housing Market

Index gauges builder perceptions of

current single-family home sales and

sales expectations for the next six months

as “good,” “fair” or “poor.” The survey also

asks builders to rate traffic of prospective

buyers as “high to very high,” “average” or

“low to very low.” Scores from each

component are then used to calculate a

seasonally adjusted index where any

number over 50 indicates that more

builders view conditions as good than

poor.

In June, the HMI component measuring

current sales conditions rose two points to

32, which is its highest level since April of

2007. Meanwhile, the components

measuring sales expectations in the next

six months and traffic of prospective

buyers held unchanged at 34 and 23,

respectively.

Regionally, the HMI results were mixed

in June, with two areas of the country

posting gains and two posting declines.

The Midwest registered a five-point gain

to 31 and the West registered a four-point

gain to 33, while the Northeast and South

each posted two-point declines, to 29 and

26, respectively.

Editor’s Note: The NAHB/Wells Fargo

Housing Market Index is strictly the

product of NAHB Economics, and is not

seen or influenced by any outside party

prior to being released to the public. HMI

tables can be found at www.nahb.org/hmi.

More information on housing statistics is

also available at

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General MeetingThe June general meeting not only saw the largest

number of attendees this year but also featured

Colonel Brant Dayley, the new Garrison commander at

Fort Bliss. Dayley replaces an old friend, Colonel

Joseph Simonelli as the “mayor” of Fort Bliss. “I have

to admit that I’m filling large shoes as the replacement

for Colonel Joe, but I’ll do my best,” Dayley said. A

native of El Paso with roots going back to the mid

1800’s, Colonel Dayley is right at home in El Paso.

“My great grandfather is the guy who put John Wesley

Hardin in the grave at Concordia,” the Colonel told the

audience.

Dayley stressed that Fort Bliss continues to see

growth and in spite of the defense department cuts

being mandated by the President Fort Bliss is the

installation of the future for the DOD. “We are an

everything everywhere post, one that has the land, air

and support capabilities for every type of weapon in

the arsenal, and the training to go with it,” he said.

In addition to meeting the new Colonel the associa-

tion also welcomed many of the newest members. It

was an important meeting for the association as it wel-

comed and networked through the hour and a half

lunch meeting held at the El Paso Club downtown.

President Frank Arroyos had this to say: “Today was

awesome for many different things not the least of

which was seeing the diversity of businesses repre-

sented today and the direction the association is going.

I’m excited as we continue to grow and move forward.”

Builders utlook on the scene |Congressman visits EPAB

New MemberOrientation

The EPAB held an orientation get

together for the recent membership

drive new members. The event, held

at the office, brought the membership

team captains in to welcome their

recruits and present them with the

incentive rewards from the drive.

"It was a great night to get to meet

the new members and get our leader-

ship together with them," said Mike

Santamaria, drive co-chair.

New members were given a tour of

the ins and outs of the association. A

list of new membership drive compa-

nies are printed in this edition of the

Outlook.

President Frank Arroyos along with

the Executive team were on hand to

answer qyestions. Co-captain Greg

Bowling said "This has to be one of

the best orientations we've ever had.

Glad to see these new members. "

View more photos on our facebook page: elpasobuildersassociation

2012/6

Bipartisan Lead Paint

Bill: Ease Regulatory

Burdens without

Compromising Safety Responding to concerns from the National

Association of Home Builders (NAHB) andaffiliated trade groups, Reps. John Sullivan (R-Okla.) Tim Murphy (R-Pa.) and a bipartisan listof original co-sponsors today introducedlegislation to make much-neededimprovements to the Environmental ProtectionAgency’s Lead: Repair, Renovation andPainting (LRRP) rule.

H.R. 5911, the Lead Exposure ReductionAmendments Act of 2012, is similar tolegislation (S. 2148) unveiled earlier this yearin the Senate by Sen. James Inhofe (R-Okla.)and five other cosponsors that would helphome owners and remodelers to better complywith the costly work practices and recordkeeping requirements of the rule withoutcompromising safety standards.

“We commend Reps. Sullivan and Murphyfor championing this bill that will not only makethe EPA’s lead paint rule more workable, butcontinue to protect pregnant women and smallchildren,” said 2012 NAHB RemodelersChairman George “Geep” Moore Jr., GMB,CAPS, GMR, a remodeler from Elm Grove, La.“This legislation will provide families greaterflexibility to decide on their own remodelingactivities and give them the peace of mind ofknowing sound safeguards remain in place toprotect against lead hazards.”

Additional co-sponsors include Reps.Leonard Boswell (D-Iowa), Aaron Schock (R-Ill.), Billy Long (R-Mo.), Kristi Noem (R-S.D.),Frank Lucas (R-Okla.), Dan Boren (D-Okla.),Tom Cole (R-Okla.) and James Lankford (R-Okla.)

The LRRP rule, which took effect on April22, 2010, requires that remodelers andcontractors working in homes built before 1978be trained and certified by the EPA on lead-safe work practices before they can legallywork in those homes.

Three months later, EPA removed the “opt-out” provision in the LRRP that allowedremodelers working in a home built prior to1978 to forego more expensive work practicesaccording to the owner’s wish if no childrenunder the age of six or pregnant womenresided there.

By removing the opt-out provision, EPAmore than doubled the number of homessubject to the LRRP. The agency hasestimated this will add more than $336 millionper year in compliance costs to the remodelingcommunity, and more importantly, withoutmaking young children any safer.

Further, EPA has failed to approve a test kitthat meets the “false positive” and “falsenegative” criteria stated in the regulation.

By failing to perform a study of leadexposure rates from work on commercial andpublic buildings, the agency has alsoexceeded its congressional mandate bystarting the process of extending the LRRP tothose structures through an Advanced Noticeof Proposed Rulemaking.

Both the House and Senate bills wouldaddress these concerns and offer otherreforms for EPA enforcement of the lead paintrule. Specifically, the legislation would:

• Reinstate the opt-out provision to allowhome owners without small children orpregnant women residing in them – not thegovernment -- to decide whether to requireLRRP compliance.

• Suspend the LRRP if EPA does notapprove a commercially available test kit thatmeets the regulation’s requirements.

• Allow remodelers to reduce fines if theycorrect paperwork errors found during aninspection.

• Eliminate the “hands on” recertificationtraining requirements that force someremodelers to travel long distances to trainingfacilities to receive proper certification.

• Prohibit EPA from expanding the LRRP tocommercial and public buildings until at leastone year after the agency conducts a studydemonstrating the need for such an action.

• Clarify the definition of “abatement” tospecifically exclude remodeling andrenovation activities.

• Provide an exemption to the regulation foremergency renovations.

NAHB is urging its members to contact theirrepresentatives and senators and urge them tocosponsor the respective lead paint billspending in the House and Senate.

For additional information about lead paint ruleenforcement and compliance, visit

www.nahb.org/leadpaint.



Time flies, its been almost 1 year

since I last wrote about energy

efficiency, green building or Solar

Energy, but things have been

extremely busy here at the office, and

between managing Border Solar,

SENERCON and everything in

between you loose track of time to

start writing, but now I have committed

myself to start writing again, and keep

our audience with new and exciting

content. This last year has been

challenging and excited between

growing the business and the family,

well... you get the picture.

Now lets get to the content from the

title of this article; First of all, Energy

Efficiency, the most important and

significant change is the full

implementation of Energy Star Version

3, in the last few months I have seen a

huge drop in the numbers of Energy

Star Homes in El Paso, and mainly

because of the extra work and

upgrades needed to comply with the

Version 3 requirements. I have to say

that the upgrades are not expensive

nor difficult but it does require the full

commitment of Builders, staff,

superintendents and some of the

subcontractors. It’s truly an integrated

effort towards improving the energy

efficiency, integrity, and quality of the

homes. In the past year at

SENERCON we did a number of

introduction trainings for builders

interested in doing the Version 3

program, acceptance was low as

expected from the beginning, but this

is NOW a GREAT OPPORTUNITY for

builders to differentiate themselves

from non Energy Star committed

builders.

The main goal for the new Energy

Star Version 3 is to introduce more

quality control on HVAC sub-

contractors; more detailed building

envelope enclosure and alignment

between the insulation and the air

barriers of the homes. One more

important upgrade of the Version 3

program is the home size adjustment

factor, which means that the bigger the

home, the higher the energy efficiency

threshold will be, this is to offset the

additional energy that larger homes

use with reference to smaller homes

with same number of bedrooms.

As of this writing, there are only 20

active Energy Star builders in El Paso,

and only 2 which are 100% committed

Version 3 builders, Winton/Flair

Homes and Palo Verde Homes, for the

others you can find out who they are

by going to the Energy Star website

and look for Energy Star builders. This

is a very significant drop since 3 years

ago, when El Paso had over 75 active

Energy Star builders.

Builders do have OPTIONS: We

know Energy Star V3 has it

challenges, so what other alternatives

are there to keep promoting energy

efficiency and 3rd party verification to

show costumers the energy

performance of Homes, the answer is

the HERS Index, which stands for

Home Energy Rating Systems, this is

being implemented by most National

Home builders as a way to differentiate

their homes and show a standardized

tools to compare Energy Efficiency

among homes, and acts as a Miles Per

Gallon (MPG) for homes. Traditionally

the HERS Index goes from 0 to 100 or

higher, the lower the number the more

energy efficient the home is, once a

home reached 0 (ZERO) it means its a

Zero Energy Home, which means that

the home produces as much energy as

it consumes, which is the ultimate goal

for Energy Sustainability, which in our

region is possible by using Solar

energy.

As always you can learn more about

Energy Star or HERS Index by calling

our office or doing a quick websearch.

If you have questions you can send me

an email directly at

[email protected], or you can

send you suggestions regarding any

topic related to Energy efficiency,

green building or Solar Energy to the

same email.

Until next time, think about the

impact that the decisions you make

today will have in our communities in

10 or 15 years, be conscious, be

proactive… it’s our responsibility for

future generations.

Give your customers the ‘option of the sun’

Now more than ever,

El Paso home buyers

are planning for the

future.

Border Solar can help

you offer your

customers solar power

as a sensible

alternative.

The future starts

today.Crossing to Clean Energy

www.bordersolar.com

7365 Remcon CircleEl Paso, TX 79912

(915) 613•4168

follow us on twitter and

facebook:

BorderSolar

Back to Energy Star, Energy Efficiency and Solar Energy

Expert Advice

Javier RuizBorder Solar/SWHER


When Patrick Malyszek decided to

come to El Paso and do a seminar

on government contracts it wasn’t

because he just enjoys a day long

plane trip. No, it was simply because

he saw a need to be filled by local

companies searching for ways to

diversify their businesses and

search for an opportunity to bid on

government contracts. Malyszek,

who is an attorney by trade, comes

from a family who practice in the field

of government contracts. His father

was a JAG officer, inside the military

legal system and shaping the

careers of his family. Mr. Malyszek

taught Patrick the values and honor

of helping people succeed in the

complicated world of government

contracting. Patrick tells his

audience that many people would

like the idea of getting a contract

from the government yet they don’t

know how or what it takes. That’s

why Patrick started M3 Federal

Contracting Practice LLC, and why it

now represents clients around the

world doing business with

governments around the globe.

The daylong seminar took the

audience through the processes

necessary to evaluate whether or not

a company should be engaged in

government contracting. Mr.

Malyszek is quick to point out that

some companies are better off not

going that route. “You would be

surprised how many people want to

do business with governments, but

they shouldn’t”, he surprised the

attendees. “Each business has to

evaluate whether it has the

willingness, temperament, and

funding to go this route,” he

continued. History tells us of

companies that went into the

government world of contracts and

came out the other end broken, in

debt, and in some cases in jail for

underperforming or fraud. “It isn’t

unusual for a trusting company to

invest large sums on the hope of a

contract, only to find out that the

government wouldn’t use them or

that issues of performance allow

government to close them down,” he

continued.

The local seminar idea sprung from

builder developer Walter Lujan of

DAWCO Home Builders. “I have

experienced the good and bad of

trying to get a contract, and the

difficulties that can be put in front of

you if you don’t have good advice,”

Lujan told the Outlook. “I found Patrick

to be extremely knowledgeable and

effective, he knows this business like

no one else I’ve found,” he continued.

Malyszek is forming a local

specialized business group with

select businesses who want to take

the government path seriously. “We

will be looking for a select group in El

Paso who want to see local

businesses earn contracts instead of

letting them go to companies outside

the area,” he said. For information on

getting involved in the group contact

Patrick Malyszek, M3 Federal

Contract Practice Group, LLC. 126

West Main Street, 2nd Floor,

Endicott, NY 13760, (607) 754-8100,

Fax: (607) 754-8232

Email:

[email protected],

www.m3federal.com

M3 Federal Contracting gives insight into government contracts

Builders utlook on the scene |

Membership News

Thanks to our

JUNE

SODA SPONSOR:

Edwards Homes

UPCOMING EVENTSJULY 11

ASSOCIATES MEETING

3:30

El Paso Association of

Builders Office

AUGUST 8

BOARD MEETING 11:00

GENERAL MEETING 12:00

EL PASO CLUB

CHASE BANK BLDG.

(DOWNTOWN)

SODA SPONSOR CONGRATS CONDOLENCES

years

E L PA S o

BUILDERSA S S o C I A T I o n o F


11395 James Watt, Suite A-11 79936915-633-8002



WELCOME NEW MEMBERS |

RENEWALS |

AC Refrigeration

Affordable Windows

Agustin Sanchez

Albrite Electric Co., Inc.

Alfonso Maese

Alianza Plumbing

American West Door, Inc.

Americh

Andres Morales Grading

Antonio Martinez

ARTchitecture

Bachmann & Lutki Real Estate

Barnett & Bennett Construction

Benito Castro

Blanco Tile

Bock & Associates

B's Tile Expressions

C Alvarado

C.D. Lee/Britton Insurance & Bonding

Cabinet Ideas

Cabinet Masters

Caesar Gonzalez

Carretes Plumbing, Inc.

Chino's Construction

ComCorp of El Paso

Company Name

Cunningham Distirbuting

D. Chevalier Electric

Davalos Inc.

Demcon Disposal Management, LLC

Diaz Construction

Diaz Services

E de M

Eastside Carpet & Flooring

El Paso Star Ready Mix

Energreen Energy Star Raters

EP Templine

ESS Environmental & Safety

Solutions

Everest Homes

First American Bank

Gabriel Higareda

Garage Doors and More

Hernandez Construction

High Tech Electric

Hilda's Janitorial

Home Warranty of America

HP Construction

Hub International

IDS Interior Design Solutions

Ivans Pumping

JA Heating & Cooling

James Herren

Javier Jaramillo Plumbing

Johnny's General Construction

Jorge Martinez

Jose Hernandez

Jurado Granite

KB Realty

Laser Tech, Inc.

LEC Engineering, Inc.

Leo's Granite Natural Stone

LMJ Construction Co., LLC

Longhorn Lighting

Loya's Shutters

Luis Lopez

Marquez and Sons

Martha Tapia

Martin De Leon Carpet Service

Martinez Iron Works

Millenium Homes

Northeast Printing

Pedro Ramirez

Pfister

PH Construction

Pointman Enterprises, LLC

Polar Heating & Cooling

Q-Martin

Quality Granite

R C Drywall

Ramirez Heating & Cooling

Richman Group Affordable Housing

Corp.

Rio Bravo Title Co.

Salvador Gureca

Sergio Guzman Plastering

Servaz Plumbing

SKI Heating and Air

Solar Community

Southwest Garage Door

Stewart Solutions, LLC

Suarez Plumbing

Texas Title Company

The Bicycle Company

Tile Service

Tom Growney Equipment

Vega Plumbing

VJE Plumbing

Westbrass Company

XRG Consulting

YEC LLC

Installation to move back to

El Paso Country Club

Preliminary plans in the works will

return the Association installation din-

ner to the El Paso Country Club on

Thursday, December 6, 2012.

Edmundo Dena, President of Accent

Homes will be installed along with the

2013 Board of Directors. Advertising

opportunities will be announced in the

coming weeks. For information on

those contact Margaret at the EPAB

office, 778-5387.

EPAB closes first week of July,

office hours change.

The El Paso Association of Builders

will be closed July 2-6 as staff takes

vacation during a traditionally slow

month. The office will reopen on

Monday, July 9.

New summer hours are also in store

for the association office. Monday

through Thursday we will be open 8-

5:30, Friday 8-noon. It is expected

that these hours will reduce our ener-

gy bills during July and August.

Meetings and events will still take

place during hours posted for such.

ANNOUCEMENTS

A & E Consultants First National Bank Majestic Realtors Wagner Equipment

To Ted Escobedo and his

family for their loss of Ernie

Escobedo Sr.

To Bob Paschich

On the birth of your

fist Grandson

Leo Marra born

6-20-12

8 lbs. 9 oz. 22” long

Hi to all Associate Members, as your

Associates Chair, I would like to welcome all

98 new members aboard and invite you to

our associates meeting to be held July 11th at

the association 6046 Surety Dr. We will start

the meeting at 3:30 in the afternoon and we

will have some interesting topics for

discussion. We have a fall golf tournament ,

bowling and more than anything we want to

hear what you have to say. With the new

group of 98 and the old timers like me and

some of our other members it should make

for some interesting conversation.

I would like to thank Mike Santamaria and

Gregg Bowling for heading up the

membership drive that brought all 98 of you

new members in.

I look forward to seeing EVERYONE at the

meeting.

Showroom: 2131 Missouri

915 • 533 • 6045 fax • 533• 6096

Thomas R. Brown, Owner


Sam ShallenbergerWestern Wholesale Supply

Associates Council

Jaime’sCourier

Service,Inc.

Jaime’sCourier

Service,Inc.915-549-4533

or 915-478-2404

Bonded, insured foryour peace of mind.

� execuTive oFFicerS

Frank Arroyos - President

Cisco Homes

edmundo Dena - vice President

Accent Homes

Frank Torres - Secretary/Treasurer

GMF Custom Homes

Sam Shallenberger - Associates council

Western Wholesale Supply

Greg Bowling - immediate Past President

Tropicana Homes

ray Adauto - executive vice President

El Paso Association of Builders

� couNciL/commiTTee cHAirS

Affordable Builders council

Bobby Bowling IV

Associates council

Sam Shallenberger

Build PAc

Randy Bowling

Desert Green Building council

Javier Ruiz

industry Promotions

Greg Bowling

Land use council

Vacant

Young Designer Award

John Chaney

remodelers council

Rudy Guel

membership Drive

Mike Santamaria

Finance committee

Kathy Carrillo

education committee

Frank Spencer

� ADviSorY To THe BoArD

J. Crawford Kerr, Attorney, Firth, Johnson

& Martinez

� BoArD oF DirecTorS

Joe Bernal, Joe Bernal Insurance

Doug Borrett, Karam Co.

Kathy Carrillo, Pioneer Bank

John Chaney, Passage Supply

Sergio Cuartas, BIC Homes

Ted Escobedo,Snappy Publishing

Art Garcia, El Paso Door

Juanita Garcia, ICON Custom Home Builders,LLC

Samira Gonzalez, Edwards Homes

Lorraine Huit, Cardel Design Group

Walter Lujan, Dawco Home Builders

Sal Masoud, Del Rio Engineering

Bruce Meyer, JDW Insurance

Edgar Montiel, Palo Verde Homes

Kathy Parry, Hunt Communities

Javier Ruiz, Senercon & Border Solar

Frank Spencer, Aztec Contractors

Henry Tinajero, Bank of the West

Linda Troncoso, TRE & Associates

Ken Wade, El Paso Building Materials

Adam Winkler, MTI Ready Mix

Paul Zacour, Zacour & Associates

2011 Builder member of The Year

Greg Bowling

Tropicana Homes

20110 Pat cox Award

Kathy Parry

Hunt Communities

2011 Associate of The Year

Sam Shallenberger

Western Wholesale Supply

John Schatzman Award

Bob Bowling III

Tropicana Homes

ePAB Special Award

Rudy Guel

Guel Construction

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

federated 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.

© 2012 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

Kelly Sorenson

Mark Dyer

Mike Santamaria

John Cullers

Randy Bowling

Doug Schwartz

Robert Baeza

Bobby Bowling, IV

Rudy Guel

Anna Gil

Bradley Roe

Bob Bowling, III

E. H. Baeza

� TAB STATe DirecTorS

Doug Borrett, Karam Co., Life Director

Randy Bowling, Tropicana Homes

� NATioNAL DirecTorS

Bobby Bowling IV.

Demetrio Jimenez

NATioNAL ASSociATioN oF

Home BuiLDerS

(800) 368-5242

TexAS ASSociATioN oF

BuiLDerS

(800)252-3625

years

E L P A S O

BUILDERSA S S O C I A T I O N O F



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