builders outlook february 2011

16
As we enter 2011, the homebuilding industry in Texas stands at a crossroads. Do we burden an ailing industry with more government regulation and fees, or allow it to flourish in a market that allows business to deal with a fluid economy effectively and efficiently. While our great state will lead the nation yet again in housing starts, the severe housing downturn has resulted in a decrease in statewide home starts of over 50 percent from the height we experienced just two Legislative Sessions ago. Historically, the homebuilding industry has served as an economic driver and can continue to do so if policy makers consider the impact of their decisions on the cost and availability of housing. While the market undoubtedly has an effect on affordability, much of it is dependent upon governmental regulations, barriers, and fees and that can be controlled. High housing costs can lead to workers relocating, long commutes, and an unreasonable share of the populace’s income spent on housing; none of which are beneficial to the community or individual. Some experts believe that the state’s population will nearly double by the year 2030, necessitating a momentous increase in our housing stock. Much of this housing will be needed to accommodate our state’s workforce, where affordable housing is in high demand. How this increase breaks down between single-family and multifamily housing has yet to be determined, but both segments are vital to the continued economic vitality of this state. The benefits of homeownership, however, are hard to deny: the building of wealth, a sense of community and a stable home for our children. The scope of issues that impact the homebuilding industry is enormous. From environmental impacts and taxes to property rights and tort reform, our industry feels the brunt of burdensome regulations on a myriad of levels. As this 82nd session progresses, several issues that will dominate our agenda include: • Business Taxes and Fees • Consumer Choice for Residential Fire Sprinklers • Reasonable Immigration Reforms • Sensible Energy Efficiency Standards • Rational Regulatory Requirements • Contractual Freedom of Choice • The Protection of Property Rights • Preventing the overreaching burden of governmental control through land use powers and other means. • Restricting the Growth of Government Reasonable regulation and proven market driven approaches will help to propel the residential construction industry to its regular status as an economic workhorse, helping to lead the charge to a full economic recovery for our state and nation. These are some of the reasons we go to Austin for Rally Day. Join the EPAB February 22-23. For information contact the EPAB at 915-778-5387. Issue 2 º2011 Building El Paso’s tomorrow today Builders Outlook PRSRT STD U.S. POSTAGE PAID EL PASO TX PERMIT NO. 429 www.elpasobuilders.com Rally Day 2011: FEBRUaRy 22-23 TEXAS BUILdERS UNITE AT cAPITOL EXPLORE AUSTIN: INSIDE> Meet our Local Legislators of the 82nd session Taxes, fees, property rights among top issues Any trip to Austin can be made special by the wide variety of things and places to see and do. While the main purpose may be something else, like our Rally Day event, it’s also an opportunity to experience Austin’s food, spirits and entertainment. Here are some places to see or do during your stay. By Ray Adauto The Driskill Hotel: The Driskill is a landmark hotel located on 6th Street and San Jacinto, just a few blocks from the state capitol and steps away from the action on 4th, 5th, and 6th streets. The Driskill is small in comparison to the more modern hotels doting the landscape of Austin, but make no mistake the Driskill is an experience all it’s own. From the beautifully restored lobby to the fancy decorations in your room the hotel has a world renowned steak house and ballroom. Heads of state have used the Driskill including President Lyndon Johnson who listened to his election returns from his suite at the Driskill. Governors, Senators and Presidents have mingled with cattle barons and oil tycoons at the Driskill. You can enjoy this hotel during your stay. It is an experience not soon forgotten. And by the way, you may just encounter a spirit or two and we’re not talking about at the bar. 6th Street: Austin is weird and weird is 6th street. This eclectic grouping of bars, theaters, food and shopping just signals that you’ve arrived at the center of fun in downtown Austin. Austin is dubbed “Live Music Capital of the World” and 6th street is where a lot of that is done. Some of the city’s more unique shops are along this long street which stretches from the gaudiness near Congress to a more reflective atmosphere as you head toward MoPac. How different? Well imagine walking down old Juarez and then ending up at Kern. Kind of like that, only in Austin you’ll see the workers in suits and ties transform into hippies at night. Some establishments are close to risky adding to the mystique of 6th street. Other cities may claim they have something similar to 6th street, but make no mistake, there is only one and that’s the one in Austin. Heck if you drive far enough out you’ll find a Whole Foods market. Now that’s weird. Story Continues on page 4

Upload: ted-escobedo

Post on 12-Mar-2016

223 views

Category:

Documents


2 download

DESCRIPTION

The official publication of the El Paso Association of Builders

TRANSCRIPT

  • As we enter 2011, the homebuilding

    industry in Texas stands at a crossroads.

    Do we burden an ailing industry with more

    government regulation and fees, or allow it

    to flourish in a market that allows business

    to deal with a fluid economy effectively

    and efficiently.

    While our great state will lead the nation

    yet again in housing starts, the severe

    housing downturn has resulted in a

    decrease in statewide home starts of over

    50 percent from the height we experienced

    just two Legislative Sessions ago.

    Historically, the homebuilding industry has

    served as an economic driver and can

    continue to do so if policy makers consider

    the impact of their decisions on the cost

    and availability of housing. While the

    market undoubtedly has an effect on

    affordability, much of it is dependent upon

    governmental regulations, barriers, and

    fees and that can be controlled.

    High housing costs can lead to workers

    relocating, long commutes, and an

    unreasonable share of the populaces

    income spent on housing; none of which

    are beneficial to the community or

    individual. Some experts believe that the

    states population will nearly double by

    the year 2030, necessitating a momentous

    increase in our housing stock. Much of

    this housing will be needed to

    accommodate our states workforce,

    where affordable housing is in high

    demand. How this increase breaks down

    between single-family and multifamily

    housing has yet to be determined, but

    both segments are vital to the continued

    economic vitality of this state. The

    benefits of homeownership, however, are

    hard to deny: the building of wealth, a

    sense of community and a stable home

    for our children.

    The scope of issues that impact the

    homebuilding industry is enormous.

    From environmental impacts and taxes to

    property rights and tort reform, our

    industry feels the brunt of burdensome

    regulations on a myriad of levels. As this

    82nd session progresses, several issues

    that will dominate our agenda include:

    Business Taxes and Fees

    Consumer Choice for Residential Fire

    Sprinklers

    Reasonable Immigration Reforms

    Sensible Energy Efficiency Standards

    Rational Regulatory Requirements

    Contractual Freedom of Choice

    The Protection of Property Rights

    Preventing the overreaching burden of

    governmental control through land use

    powers and other means.

    Restricting the Growth of Government

    Reasonable regulation and proven market

    driven approaches will help to propel the

    residential construction industry to its

    regular status as an economic workhorse,

    helping to lead the charge to a full

    economic recovery for our state and

    nation. These are some of the reasons we

    go to Austin for Rally Day. Join the

    EPAB February 22-23. For information

    contact the EPAB at 915-778-5387.

    Issue 2 2011 Building El Pasos tomorrow today

    Builders OutlookP

    RS

    RT

    ST

    D

    U.S

    . P

    OS

    TA

    GE

    PA

    ID

    EL

    PA

    SO

    TX

    PE

    RM

    IT N

    O.

    429

    www.elpasobuilders.com

    Rally Day 2011: FEBRUaRy 22-23

    TEXAS BUILdERS UNITE AT cAPITOL

    EXPLORE AUSTIN:

    INSIDE>

    Meet our Local

    Legislators of the

    82nd session

    Taxes, fees, property

    rights among top issues

    Any trip to Austin can be made special by the wide variety of things and

    places to see and do. While the main purpose may be something else, like our

    Rally Day event, its also an opportunity to experience Austins food, spirits

    and entertainment. Here are some places to see or do during your stay.

    By Ray Adauto

    The Driskill Hotel: The Driskill is a

    landmark hotel located on 6th Street and

    San Jacinto, just a few blocks from the

    state capitol and steps away from the

    action on 4th, 5th, and 6th streets. The

    Driskill is small in comparison to the

    more modern hotels doting the landscape

    of Austin, but make no mistake the

    Driskill is an experience all its own.

    From the beautifully restored lobby to

    the fancy decorations in your room the

    hotel has a world renowned steak house

    and ballroom. Heads of state have used

    the Driskill including President Lyndon

    Johnson who listened to his election

    returns from his suite at the Driskill.

    Governors, Senators and Presidents have

    mingled with cattle barons and oil

    tycoons at the Driskill. You can enjoy

    this hotel during your stay. It is an

    experience not soon forgotten. And by

    the way, you may just encounter a spirit

    or two and were not talking about at the

    bar.

    6th Street: Austin is weird and weird is

    6th street. This eclectic grouping of

    bars, theaters, food and shopping just

    signals that youve arrived at the center

    of fun in downtown Austin. Austin is

    dubbed Live Music Capital of the

    World and 6th street is where a lot of

    that is done. Some of the citys more

    unique shops are along this long street

    which stretches from the gaudiness near

    Congress to a more reflective

    atmosphere as you head toward MoPac.

    How different? Well imagine walking

    down old Juarez and then ending up at

    Kern. Kind of like that, only in Austin

    youll see the workers in suits and ties

    transform into hippies at night. Some

    establishments are close to risky adding

    to the mystique of 6th street. Other

    cities may claim they have something

    similar to 6th street, but make no

    mistake, there is only one and thats the

    one in Austin. Heck if you drive far

    enough out youll find a Whole Foods

    market. Now thats weird.

    Story Continues on page 4

  • Builders Outlook2 FEBRUARY 2011

    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 oer your

    customers solar power

    as a sensible

    alternative.

    The future starts

    today.Crossing to Clean Energy

    www.bordersolar.com

    7365 Remcon Circle

    El Paso, TX 79912

    (915) 6134168

    follow us on twitter and

    facebook:

    BorderSolar

    Jose Rodriguez, (D)

    Senator, District 29Jose Rodriguez is

    the son of migrant

    farm workers, born

    in Alice, Texas, in

    1948. From an early

    age, he worked in

    fields throughout the

    United States to help

    support a family of nine. Jose graduated

    in the class of 1967 from Pharr-San Juan-

    Alamo High School in Pharr, Texas, in

    the Lower Rio Grande Valley.

    He attended Pan American University

    in Edinburg, Texas, where he was

    student body president and graduated in

    1971 with a Bachelor of Arts degree in

    Government. He realized his dream of

    becoming a lawyer when he graduated in

    1974 from the National Law Center at

    George Washington University in the

    nations capital. He and his family have

    made their home in El Paso for 27 years,

    since 1983.

    He has practiced law for 35 years, 33

    of them in the public interest sector. As

    El Paso County Attorney, he was elected

    for 5 terms beginning in 1993. Before

    assuming his duties as County Attorney,

    Jose was Legal Advisor to County Judge

    Alicia R. Chacon. He began his legal

    career as a staff attorney with the United

    States Department of Housing and Urban

    Development in Washington, D.C. He

    practiced law with the firm of Rodriguez,

    Lewis& Collins and worked for 10 years

    as a staff attorney and director of the

    farm worker program of Texas Rural

    Legal Aid, Inc, a statewide legal services

    program.

    As County Attorney for the last 17

    years, Jose represented the County of El

    Paso, its elected officials, and the county

    hospital district, as well as the State of

    Texas in matters involving juvenile

    crime, child and elder abuse, mental

    health, deceptive business practices, and

    environmental enforcement. His work

    included challenging the State on

    transportation funding, Medicaid

    reimbursement rates, and mental health

    funding. His legislative advocacy

    contributed to the enactment of colonia

    Rally day 2011: FEBRUaRy 22-23

    Meet our Local Legislators of the 82nd session

    legislation, border county regulatory

    authority, first environmental State court,

    and historic county ethics legislation.

    Joe Pickett, (D)Joe Pickett has been

    in the legislature for his

    eighth term. He has

    served the 79th District

    which reaches out from

    the eastside to northeast

    El Paso. Representative

    Pickett is no stranger to

    the home builders and

    has been supportive of issues that affect the

    industry. His understanding of real estate

    comes from his background as a broker and

    real estate investor. Mr. Picketts biography

    is posted on his website, joepickett.com and

    we have taken some of the following

    information from there.

    Joe C. Pickett is a member of the Texas

    House of Representatives, where he is

    presently serving his eighth term. Rep.

    Pickett is currently serving as Chairman of

    the House Committee on Transportation.

    In addition, he is a member of the House

    Committee on Defense and Veterans

    Affairs and the House Committee on

    Redistricting.

    Representative Pickett is a member of the

    House Research Organization Committee.

    This committee reports on all legislation

    which is scheduled for floor debate. The

    reports are a balanced analysis and include

    the pros and cons of each bill.

    Representative Pickett started his

    political career as a City Council member

    for the City of El Paso, Texas. During his

    time on City Council, he was appointed to

    serve on the Central Appraisal District

    Board for El Paso County and the Pension

    Board for the City of El Paso.

    Representative Pickett holds a Texas

    Real Estate Broker's license and has been a

    real estate educator for more than two

    decades. He has written his own text book

    for continuing education classes and still

    teaches one or two days a month, schedule

    permitting. He is the author of several

    children=s books, with two of his books

    already published and being marketed

    throughout the United States. It is a big part

    of his efforts to support children's literacy

    programs.

    Representative Pickett's civic

    involvement includes membership on the

    boards of the Advocacy Center for the

    Children of El Paso, the Texas YMCAs

    Policy Council and the Advisory Council

    for Health Sciences for the University of El

    Paso. He has been a member of the Lions

    Club for the past 18 years, a former

    member of the El Paso Crime Stoppers

    Board, and served five years as a volunteer

    board member, then Chairman of a local

    credit union. The main thrust of his civic

    involvement has been the forming of a 501-

    C3 non-profit organization that fights

    graffiti, supervises troubled youth who are

    required to serve community service hours

    and enhancing the aesthetics of the

    community through tree planting, cleaning

    and building renovation projects.

  • Get ready for Austin! Its time to prepare

    for Rally Day and all the interesting and

    fun things we can do when we visit our

    elected officials in Austin February 22-23.

    I hope we have an outstanding number of

    you join us. Its the one time you can see

    firsthand how we work with TAB and the

    legislature.

    There are a couple of things that a new

    year brings to the El Paso Association of

    Builders that really get the blood going.

    January is when we traditionally gather as a

    national fraternity at the National

    Association of Home Builders (NAHB)

    annual convention and International

    Builders Show. In 2011 and 2012 the IBS

    and NAHB meetings are being held in

    Orlando, Florida. The show was a little

    smaller this year, but given the economy we

    are lucky to have had a respectable vendor

    presence. The show was easy to get around

    with a little wider aisle and less people run-

    ning into you and frankly I had a pretty

    good time visiting with many. Ray and I

    partnered up and we had some interesting

    visits particularly with the Chinese delega-

    tions that were set up there. The IBS

    returns next year about a month later than

    this year and I think that will help get more

    people there. El Paso was pretty well rep-

    resented with a dozen or so members.

    Thanks for going.

    January also brought the first board meet-

    ing of the year. I have changed the schedule

    for meetings and meeting times to try to get

    a better working meeting and following the

    recommendations of our strategic planning

    group. Ray handed out some important

    paperwork to the board in attendance and it

    includes some documents that entrust the

    board to act responsibly for the good of the

    association. New IRS regulations and good

    business practices really require more

    scrutiny and more transparency in the gov-

    ernance of the association. We have taken

    steps to ensure that and have made policy

    changes to enforce those steps.

    Finally Id like to thank Sam

    Shallenberger, Ray Adauto and staff Angie

    and Margaret for their work on the Spring

    Home Show. By all accounts it was a suc-

    cess especially on Saturday when the

    crowds packed the Convention Center. At

    the Tropicana display we literally had thou-

    sands of visitors in the three days and as I

    walked around and saw other booths they

    were busy as well. With the economy

    improving I think a show like this does

    good things for El Paso and for our

    Association. Thank you to the 25 members

    who took time to display at OUR show.

    This event is a part of our budget every year

    and it is only with member support that we

    make any money from it. While we look at

    future events I would encourage and ask

    each one of our members to participate and

    help us get the good word out about the El

    Paso Association of Builders. Our show

    does this with your help. See you in Austin!

    Greg

    Bowling

    President,

    El Paso Association

    of Builders

    Presidents Message

    Builders Outlook3

    Jaimes Courier Service, Inc.

    915-549-4533 or 915-478-2404Bonded, insured for your peace of mind.

    ElPasoDisposal

    772-7495

    Chente

    Quintanilla,

    (D) 75th DistrictRepresentativeInnocente ChenteQuintanilla representsDistrict 75, that stretch-es from past Tornillo,

    Horizon City all the way to parts of LeeTrevino on the eastside. The large landarea that this district encompasses is goingto be where most of the growth for ourarea takes place. Within the area are thecolonias that the 81st Legislature felt com-pelled to focus its efforts on. Throughwork at the legislative committee level andin meetings with others the El PasoAssociation of Builders has maintained agood working relationship withRepresentative Quintanilla.

    Mr. Quintanilla is an educator by tradeand is intimately involved in ensuring thathis poorer parts of the district do not losefunding, and that his more affluent schooldistricts are not discriminated upon by anyRobin Hood legislation. RepresentativeQuintanilla is regular contributor to theEPAB Builders Outlook newspaper wherehis subject matter concentrates on issuesrelating to building trades, legislation, andprogress within his legislative district.

    Representative Quintanilla entered thestate legislature in 2003. His staff hasworked with the El Paso Association ofBuilders on a variety of issues during thoseyears especially on the issue of countyauthority.

    Marisa Marquez,

    (D) 77th DistrictRepresentative Marisa

    Marquez represents dis-trict 77 in El Paso. Thisdistrict runs from aboutViscount and Hawkinsnorth to Fred Wilson,

    then encapsulates all of central and down-town El Paso, then around to areas aroundKern and Rim Road. The diversity of con-stituants in this district is staggering.Representative Marquez was elected onNovember 4, 2008 and is serving her firstterm in the Texas House ofRepresentatives.

    Representative Marquez graduated fromFaith Christian Academy as Valedictorianin 1996. She completed her Bachelor ofBusiness Administration in Finance andBusiness Economics in 2000 fromUniversity of Notre Dame.

    In her initial legislative yearRepresentative Marquez worked with theEl Paso Association of Builders and TexasAssociation of Builders to find a compro-mise on county authority legislation.Representative Marquez was elected bythe Legislative Study Group (LSG) HouseCaucus as the Ex-Oficio board member torepresent the freshman class on the LSGboard, the only freshman position on theLSG executive committee. She is also amember of the Mexican AmericanLegislative Caucus. She sits on three com-mittees: Corrections, County Affairs, andRules & Resolutions. No assignmentshave been made for the 82 Legislature atpress time.

    Naomi Gonzalez,

    (D) 76th DistrictNaomi R. Gonzalez

    is an attorney andpolitician from El Paso,Texas. She is aDemocratic member ofthe Texas House of

    Representatives, where she represents the76th district in El Paso County.

    Gonzalez graduated from JeffersonHigh School in El Paso, before going toOur Lady of the Lake University in SanAntonio and law school at Saint Mary'sUniversity. On graduating law school, she

    worked at El Paso law firms before joiningthe El Paso County Attorney's office in2007 as an Assistant County Attorney.Gonzalez defeated seven-term incumbentNorma Chvez in the 2010 Democraticprimary runoff to capture a seat in theTexas House, capitalizing on a series ofhigh-profile controversies surroundingChvez. Despite running against a long-time incumbent, Gonzalez's campaignreceived the support of numerous localpolitical players, including the El PasoTimes, state senator Eliot Shapleigh andother members of the county's legislativedelegation. The race was highly negativeand personal, with each candidate launch-ing attacks against the other.

    In the Democratic primary election heldon March 2, Gonzalez polled 48% of thevote to Chvez's 46%, with a minor candi-date taking the remainder.

    Dee Margo, (R) District 78

    Dee R. Donald Margo,better know as Dee, is theRepresentative forDistrict 78. Dee is theonly Republican repre-sentative and onlymember of the El Paso

    Association of Builders in the Texas 82ndLegislature. Dee is CEO of the JDWInsurance company and has worked therefor over 30 years. He is married to Adair, aprominent artist and philanthropist. Deeran a successful campaign in 2010 tounseat the incumbent Pat Haggerty. Deesdistrict weaves through the Northeast sideof El Paso over to the Westside includingthe Upper Valley communities of Anthonyand Canutillo.

    A resident of El Paso for over fourdecades, Dee has dedicated his life to serv-ing others. He is deeply committed to ful-filling his civic duty, and has taken leader-ship roles in numerous groups working to

    better our community and improve ourquality of life. Those areas include jobsand infrastructure, education, health careand water quality.

    He has been a strong leader in growingand diversifying El Pasos economy as anactive member of the Greater El PasoChamber of Commerce, the El PasoRegional Economic DevelopmentCorporation, and the Paso Del NorteGroup.

    Dee also helped found the Border Fund,a non-profit foundation providing over$26 million in charitable grants to localvolunteer groups. His firm is the principalpartner in Operation Noel, providing over13,000 coats for needy El Paso children,from toddlers to teenagers, eachChristmas.

    A current member of the WorldPresidents Organization, and past memberof the Young Presidents Organization, Deehas been honored as an exemplary rolemodel in business ethics.

    Dee has also been recognized for hisgenerous work on behalf of others. Hereceived the Department of the ArmysOutstanding Civilian Service Medal forhis work on behalf of Ft. Bliss, the El PasoChamber of Commerces Star Award, andthe League of Women Voters BRAVOAward. He was inducted into JuniorAchievements El Paso Business Hall ofFame in 1999.

    Born on February 3, 1952, Dee attendedVanderbilt University on a football schol-arship where he received a bachelorsdegree in history and economics, andwhere he met his wife Adair, also aVanderbilt graduate.

    This is Dees freshman year as a legisla-ture but he has been intimately involved inRepublican politics for decades. His con-nections with the Governor and the leader-ship of the Senate and House give Deeexperience that few freshmen legislatorshave.

  • This issue is dedicated to the upcomingRally Day in Austin coming up February22-23, followed by the TAB meetings 24-26. This happens only every other yearwhen the legislature is in session. Thatdoesnt mean the government stops whenthere is no session it just means that this isthe designated time to add bills that comeup for action or inaction depending onwho gets the votes. Everyone is talkingabout the budget shortfall and how cutsare going to be made in all areas of Texasgovernment.

    What we are concerned with as anassociation is that some elected yoyodoesnt make building a home or sellingthe parts for it any harder than it already isby enacting laws that raise prices anddont accomplish anything else. Its a jobthat we depend on a select group of ElPasoans to take our voice to the legislatureand also to TAB. Rally Day is importantfor you and us and thats why itsimportant you go and join us that day.Our Rally Day calendar is almost full (attime of press) so we are looking forwardto meeting with our delegation. Join usfor the day. Im sure youll find it a greatexperience.

    The year has already had some goodactivity at the EPAB. Our first regularlyscheduled board meeting took place theweek after the National Association ofHome Builders meeting in Orlando, thehome of the frozen orange juice. Man wasit cold. The IBS had about 30% fewerdisplays and attendees, but as PresidentGreg Bowling said this time the show waseasier to get around to and visit withvendors. The vendors said to us that theywere pleased with the quality of theturnout, saying that their purpose wassales and they were getting them. BothGreg and I went around and thanked thevendors for showing up as this is a majorbudget item for the NAHB. All in all itwas a quick and interesting trip. I stillvote for Las Vegas and really cant waituntil it goes back there in a couple ofyears. By then we should be movingalong nicely and sales of new homesshould be returning on track.

    The Spring Home Show right here in ElPaso was held the weekend of January 23-25. I would like to publicly thank GregBowling and Sam Shallenberger for theirleadership in coordinating the show withthe promoter. While we cant pleaseeveryone I have to say that we were happywith the number of displays and vendorparticipation. It is especially hard to layout money for a booth when the economyis hurting, but we had 25 membercompanies participate and we thank you.Doing a show, any show can help you getpotential suspects, because lets be honest,you have only suspects until you turn

    them into prospects. Where else couldyou have reached out to thousands ofpotential suspects that weekend? Noteven the mall my friends. Certainly thequality of people who attended hadbuying on the mind. There is a pent updemand for services and products aspeople look to improve their home orapartment. Sam and I are working onsome ideas for the future and we hope thatincludes you.

    Finally the recent increase in the bondrequirement from the City of El Paso hasreally put a lot of pressure on contractors,developers and the association. If youdont know the City has raised the bond to$50,000 for contractors to have permitauthorization. You ask why the City didthis. The answer they gave us knockedme for a loop. They want to protect theconsumer and take out the bad playersthat do shoddy work. Thats the answerthat I got face to face with City officials.First of all the City is not here to protectconsumers, especially from themselves.The City said it all came to a head with theroofing companies that came into El Pasoduring a hail storm late in 09. Consumer

    complaints were escalating and the Cityfound themselves in a situation where thebond amount of $10,000 just didnt covermany roofs. Well heres a news flash: abond is not insurance and raising the bondfor this purpose just opens a target forshysters and their accomplishingattorneys. The requirement for the higherbond is causing many to do without and orto have to personally guarantee the bond.The second reason for the increase, againaccording to a City official, is to root outthe guys who shouldnt be in business tostart with. Can you say what???????Since when is it the Citys job to forcepeople, good people, out of business justbecause the new rules for bonds cant bemet? Where is the justice in this andwhere is legality of it? We are trying towork with Development Services and theCity attorney. But this small preview ofwhat they are thinking should send chillsdown your bones and in every El Pasobusiness persons bones. Today its us;soon youll see City officials inside theoperating room telling the doctors how tooperate. Just wait.

    Lots of work to do in Austin and at homePerspective

    Builders Outlook4 FEBRUARY 2011

    Ray Adauto,

    Executive

    Vice President

    EPAB

    ...the recent increase in the bond requirement from the City of

    El Paso has really put a lot of pressure on contractors,

    developers and the association. If you dont know the City has

    raised the bond to $50,000 for contractors to have permit

    authorization. You ask why the City did this. The answer they

    gave us knocked me for a loop. They want to protect the

    consumer and take out the bad players that do shoddy work.

    The Capitol:

    Well be meeting in the front of thisfabulous building for Rally Day.Constructed out of pink granite andlimestone the Texas Capitol is anextraordinary example of late 19thcentury public architecture and is widelyrecognized as one of the nations mostdistinguished state capitols. It was placedon the National Register of HistoricPlaces in 1970 and designated a NationalHistoric Landmark in 1986 for its"significant contribution to Americanhistory."

    Sited on one of Austin's highest points,the Capitol anchors the northernperiphery of the downtown commercialdistrict and commands a sweeping viewtowards the Colorado River from itssouthern faade. The main campus of TheUniversity of Texas at Austin is situatedfour blocks to the north. Completed in1888 as the winning design from anational competition, the Capitol's style isRenaissance Revival, based on thearchitecture of 15th-century Italy andcharacterized by classical orders, roundarches and symmetrical composition. Thestructural exterior walls are "sunset red"granite, quarried just 50 miles from the

    site. Additional structural support isprovided by masonry walls and cast ironcolumns and beams. The foundation islimestone. Texas paid for the constructionnot in dollars, but in land: some threemillion acres in the Texas Panhandle thatwould later become the famous XITRanch.

    An extraordinary edifice by anymeasure, the 1888 Texas Capitol is thelargest in gross square footage of all statecapitols and is second in total size only tothe National Capitol in Washington, D.C.Like several other state capitols, the 1888Texas Capitol surpasses the NationalCapitol in height, rising almost 15 feetabove its Washington counterpart.

    The Bob Bullock Texas HistoryMuseum: Relive the pages of Texashistory at the Bob Bullock Texas StateHistory Museum. Interactive exhibits,artifacts, an IMAX Theatre and the multi-sensory Texas Spirit Theatre bring themyth, legend and fact of Texas all togetherunder one roof. The IMAX theatre featuresfirst run movies including those fancy new3D movies but only 5 stories taller thanwhat youll see at Tinsletown. Its onlyblocks away from your stay downtown.

    South Congress Avenue:

    This is one of my favorite spots to eat andsee a lighter version of Austin weird.South Congress is across the river fromdowntown and houses some really goodfood and some really cool shops.Guerros is a favorite haunt for us as weexperience what I call Austin-Mex (heavyon the Mex here) at its very finest.World famous margaritas, busy waiters,and a full house generally welcome youany time of day or night. Remember thatin Austin the way they say the name iscloser to Gwer-ohs with a hard g at thefront. Theres a lot of that in Austin. Tryfinding Man-shack. Youll be surprisedthat its really Manchaca. Weird. Justacross the street is perhaps some of thebest pizza in town. Its Home Slice-Queen of Pies and the smell of fresh pizzaopens up your appetite as you drive orwalk by. Dont miss South Congress. Itsreally a good place for weird shops andart galleries. Youll also see the hottesttrend in food- food trailers! An Airstreamwith the giant cupcake (Hey Cupcake!) isnormally parked at the end of SouthCongress.

    Finally you could add Huts Burgers,

    Chuys, or other great Austin onlyrestaurants to my list of must dos. But Idbe remiss if I didnt point you to someother places like the great BBQ on nearlyevery other corner, or to Eddie Vs, oreven some out of this world Asian bistroslike Suzis or late night at the Magnolia.Sure you can venture out to the campus ofUT, or go the LBJ Museum or do someshopping at The Domain (home ofTiffanys and Neiman Marcus). All ofthis is good but I think if you really want

    to know a city look at its food and itll tellyou about its soul. Austin. From Amysice cream to Z-Tejas. Where else can youget your weird on and enjoy it so much. For additional information you can lookup the dozens of websites dedicated toAustin visits.

    Rally day 2011: FEBRUaRy 22-23

    EXPLORE AUSTIN: Continued from front cover

  • Builders Outlook 5FEBRUARY2011

    We now know how much less the State

    of Texas has to spend on government and

    assistance programs. The Comptroller

    announced a shortfall from the last session

    of almost $28 billion. If it was the

    intention of the legislature to continue

    every program at the same levels of the

    past two years, then the $28 billion would

    be considered a budget deficit. We would

    have to find a way to produce the revenues

    in order to maintain the status quo.

    That is not the way the Texas

    constitution allows the process to go

    forward. Unlike the federal budget, there

    are no loans to bridge deficits. We have

    $28 billion less to spend and that is it.

    In case you missed it, I posed the

    problem in absolutes in the above

    paragraphs. Neither option is the best.

    That is the peril of politics: one becomes

    blind to compromise for the sake of

    political expediency.

    Yes, we have a budget problem. But

    Texas is also a very wealthy state. There is

    an abundance of wealth that can bridge the

    gap between the two extremes.

    The House Appropriations Chair,

    Representative Jim Pitts, made a grim

    announcement about the appropriations bill

    which is being filed this week. His

    comment was that there was going to be a

    lot of pain. That is the easy way of

    avoiding the arduous task of compromise.

    One of the issues that we know will be

    dramatically impacted is public education.

    The reality with this issue is that the state is

    going to require the status quo on standards

    set by the state; but, in the end, will pass the

    funding problem to the local communities.

    What is ironic about passing the funding

    locally is that public education, as opposed

    to all of the other provisions in an

    appropriations bill, is specifically

    dedicated in the Texas Constitution as a

    state charge.

    A general diffusion of knowledge being

    essential to the preservation of the liberties

    and rights of the people, it shall be the duty

    of the Legislature of the State to establish

    and make suitable provision for the support

    and maintenance of an efficient system of

    public free schools.

    Those are the words in our constitution.

    It is obvious that public education should

    be funded by the state at a level that meets

    the lofty goal for the diffusion of

    knowledge. Unfortunately, the wording is

    conveniently vague so that those wish not

    to increase state revenues can conveniently

    pass the buck to local taxpayers.

    When it comes to education, that is a

    poor decision. Tap the wealth and raise the

    education bar. This would require

    wealthier communities to share their

    property tax wealth with poorer

    communities.

    While the level of public education, in

    comparison with other states, languishes in

    the lowest percentiles, the future of our

    state grows increasingly dim. Without

    highly educated workforces in the future,

    we will be restricted in the types of

    industries or businesses that locate here.

    The future prosperity of Texas teeters on

    the brink while decision makers mindlessly

    pursue the policy, in absolute lockstep, of

    no new tax revenues.

    $500,000,000. Five hundred million.

    Half a billion. No matter how you look at

    it, that is the price we have paid in local

    property taxes since 1998 for a broken

    health insurance system that leaves one in

    three people in El Paso without health

    insurance.

    According to the latest figures from

    University Medical Center, we are paying

    70 percent more to cover the costs of

    those who could not afford to pay for

    health care than we did just 10 years ago.

    This problem is simply unsustainable.

    The cost to El Paso property tax payers

    now exceeds $50 million a year, and it

    continues to grow.

    Nationally, the number of people

    without insurance also continues to rise,

    as insurance is becoming out of reach for

    more Americans. In the U.S., more than

    50 million people are now without health

    insurance twice the size of Texas entire

    population.

    Fortunately, last year Congress passed,

    and the President signed into law, the

    Patient Protection and Affordable Care

    Act that will help address this problem by

    providing affordable health insurance

    options to those who are currently

    uninsured. With over 230,000 people in

    our community without health insurance,

    this law is critical to the physical health of

    tens of thousands of local families, and to

    our regions long term economic health.

    While some aspects of the new law take

    effect in 2014, El Pasoans are already

    benefiting from the insurance protections

    that are now in place.

    The Patient Protect Act put an end to the

    health insurance industrys most harmful

    practices, such as denying insurance to

    children with preexisiting conditions, and

    the termination of benefits when an

    individual develops a serious illness or

    reaches an established cap on coverage.

    All of these are now a thing of the past.

    Today, young El Pasoans can stay on

    their parents insurance until the age of 26.

    This provision is particularly important

    because young people make up the largest

    demographic without health insurance in

    the nation.

    El Paso seniors can now receive free

    preventative care such as mammograms

    and colonoscopies, and an annual

    wellness visit, without copayments,

    coinsurance, or deductibles. Seniors who

    hit the Medicare donut hole now qualify

    for a 50 percent discount on certain

    prescription drugs and $250 to help cover

    drug costs until the donut hole is

    eliminated. El Paso seniors have already

    received more than $550,000 under the

    legislation to help pay for much needed

    prescriptions.

    Over the long term, the Patient

    Protection Act will significantly improve

    the health and quality of life for so many

    El Pasoans. It will encourage them to

    seek preventative treatment in a doctors

    office, not in an emergency room, which

    is the most expensive type of health care.

    Republicans in Congress, however, are

    trying to turn back the clock. Last week,

    the Republican-led House passed H.R. 2,

    a bill to dismantle the Patient Protection

    and Affordable Care Act, and failed to

    propose an alternative solution. The

    Republican legislation would put

    insurance companies back in the driver

    seat, and allow them to once again decide

    who gets coverage and who does not. It

    would allow the health insurance industry

    to reinstate the same harmful practices

    that are now prohibited by law.

    Texas already has more uninsured

    children and adults than any other state,

    and the problem will continue to get

    worse if this legislation is repealed.

    As we have seen with the rising costs

    incurred by local property tax payers to

    treat those without insurance, doing

    nothing is an option we really cannot

    afford.

    $28 billion dollar shortfall to impact Texans significantly

    Health care repeal will shove costs to property tax payers

    Chente Quintanilla

    State Representative

    Guest Perspective

    Guest Perspective

    Silvestre Reyes

    US Congress

  • YouR

    Plumbing SupplySource in El Paso

    44330000 RRoossaa SStt..EEll PPaassoo,, TTXX 7799990055

    ((991155)) 553322--33991177 FFaaxx:: ((991155)) 553322--33991199

    Builders Outlook6 FEBRUARY2011

    Members of the National Association of

    Home Builders (NAHB) elected four

    senior officers to top leadership positions

    within the federation during the

    association's International Builders' Show

    in Orlando.

    With more than 800 affiliated state and

    local home builders associations and more

    than 160,000 members across the country,

    NAHB is the "voice of the housing

    industry," representing the interests of the

    nation's housing professionals through

    advocacy, education and research.

    Taking the helm as NAHB's Chairman

    of the Board this year is Bob Nielsen, a

    Reno, Nev.-based home builder. A leader

    in the Reno area home building and

    development industries for more than 25

    years, Nielsen is president of Shelter

    Properties, a development and

    management company headquartered in

    northern Nevada.

    Nielsen has been at the forefront of

    NAHB's efforts to strengthen the

    residential construction industry in

    response to the current economic

    downturn. At a time when many banks are

    under pressure to reduce lending to the

    housing industry, Nielsen has been

    working with the banking industry and its

    regulators to restore the flow of credit to

    builders for sound projects.

    "Policy makers and the financial

    services industry need to understand that

    you can't paint the building industry with a

    broad brush," Nielsen said. "There are

    many solid projects in vibrant markets that

    are a good investment right now. The

    housing industry needs credit for those

    projects in order to get housing going

    again as an engine of job growth in

    America."

    Also moving up on the association's

    leadership ladder during NAHB's Orlando

    board meeting was Gainesville, Fla.-based

    home builder Barry Rutenberg, who was

    elected to be NAHB's First Vice Chairman

    of the Board. The president of Barry

    Rutenberg and Associates, Inc., he has

    more than 35 years of experience in the

    housing industry and has developed more

    than a dozen communities and 1,000

    homes in te Gainesville area.

    Rick Judson, a builder and developer

    from Charlotte, N.C. was elected to the

    post of Second Vice Chairman. Judson,

    who owns the Evergreen Development

    Group, has several decades of experience

    in land development and construction of

    single-family, multifamily and commercial

    projects.

    Kevin Kelly, a Delaware builder and

    developer with more than 30 years of

    experience in the building industry, was

    elected as the 2011 Third Vice Chairman

    of the Board. Kelly has been a builder and

    developer since he joined Leon N. Weiner

    & Associates in 1979 and became actively

    involved at the Home Builders Association

    of Delaware. His building experience

    includes land development, multifamily

    and single-family home building,

    construction financing and property

    management.

    2010 NAHB Chairman Bob Jones, from

    Bloomfield Hills, Mich., remains on the

    leadership ladder as Immediate Past

    Chairman. Jones is president of Robert R.

    Jones Homes, specializing in land

    development and the design and

    construction of single-family luxury

    homes throughout metropolitan Detroit.

    Rounding out the association's

    leadership is NAHB Chief Executive

    Officer Jerry Howard, from Washington,

    D.C. Howard heads up a professional staff

    of more than 250 working out of the

    National Housing Center in Washington.

    He has served as the association's

    CEO/EVP since February of 2001.

    Previously, Howard was NAHB's chief tax

    counsel.

    nations home builders elect leadership for 2011

    nahb chairmans perspective

    on Presidents State Of The

    Union address

    Bob Nielsen, chairman of the

    National Association of Home

    Builders (NAHB) and a home

    builder from Reno, Nev., issued the

    following statement in regards to

    President Obamas State of the

    Union address.

    As President Obama charts a

    course for the nations economic

    future, we all need to understand

    that housing must play a vital role

    to stimulate job and economic

    growth. Restoring the health of the

    housing industry is a crucial first

    step in bolstering job creation and

    leading the economy to higher

    ground. Now is not the time to

    abandon our governments long-

    standing commitment to housing.

    www.nahb.com

    National Association

    of Home Builders

    Two of the most valuable

    advertising tools have

    joined forces...

    Introducing the all new 2011 Builder Book.

    Now, you can reach the home building industry PLUS the

    home buying consumer all in one innovative publication.

    As a member of EPAB, you can receive substantial

    discounts in both our print and online version.

    DO NOT MISS THIS OPPORTUNITY!

    Call Margaret at EPAB 778-5387 Today!

  • Builders Outlook 7FEBRUARY2011

  • EPAB ON THE SCENE

    .FEBRUARY 2011

    The Spring Home Show presented by the

    EPAB was held the weekend of January 21-

    23 at the El Paso Convention Center. Nearly

    100 vendors participated in the three day

    whirlwind event. Crowds were very good

    especially on Saturday when a steady flow of

    attendees swept into the show. While ven-

    dors presented their goods the attendees were

    treated to two performances from the St. Pius

    X church folklorico group comprised of spe-

    cial needs members of that church. Our

    thanks go to the Estrellitas De Dios dancers

    and to Laura Cortez of Tropicana Homes for

    making the arrangements.

  • Tuscanyat ridgeview estates ii

    a secure and serene gated community in West el Paso

    Wake up to a beautifulTuscan sunrise without ever

    leaving El Paso

    State-Of-the-art eleCtrOniCally mOnitOreD GateS

    iDeal lOCatiOn: frOm i-10 exit at reDD rOaD, riGht at Bear riDGe

    lOtS StartinG at $59,500

    Offered by SDC Development Group, Contact Pat Woods (915)591-6319 ext 38

  • Builders Outlook10FEBRUARY2011

    2011 New American

    Home Combines

    Elegance with

    Green Innovation

    The 2011 edition of The New American

    Home (TNAH) features leading-edge green

    building technology woven seamlessly into

    the elegant architecture of the well-crafted

    house. The home has achieved Emerald

    status under the National Green Building

    Standard certification program.

    Featuring American Empire design with

    Greek Revival elements, the home combines

    an inviting layout with graceful style,

    eccentric interiors and easy classicism. Built

    in a quiet Orlando neighborhood, it offers lake

    views with the Orlando skyline beyond. The

    show home is a highlight of the International

    Builders Show (IBS), taking place this week

    in Orlando.

    Anyone attending the International

    Builders Show should see The New American

    Home, said Alex Hannigan, a past TNAH

    builder and current chairman of the TNAH

    Task Force that oversees the project each year.

    Whether youre looking for ideas on green

    building, technology systems integration or

    the latest design trends, this home will give

    you great ideas that you can take back to your

    business.

    Now in its 28th year, The New American

    Home is constructed annually in conjunction

    with the NAHB International Builders Show

    to showcase innovative building technologies

    and the latest building products.

    As NAHBs official show home, it displays

    design trends, construction techniques, and

    materials that the building industry can use in

    any new or remodeled home. The showcase

    products in the home are provided by

    members of NCHI, the National Council of

    the Housing Industry, the leading

    manufacturers and suppliers for the

    construction industry.

    In keeping with increasing demand for

    energy- and resource-efficiency, TNAH 2011

    has achieved Emerald certification under

    the National Green Building Standard. The

    Standard was developed by NAHB and

    approved by ANSI, the American National

    Standards Institute. Emerald is the highest

    of the four levels of achievement in resource

    efficiency that the Standard recognizes.

    Certification to the standard is provided by the

    NAHB Research Center.

    To attain Emerald status under the standard,

    TNAH 2011 relies on the latest innovations in

    green building and construction technology,

    including a state-of-the-art energy efficiency

    package. The homes green building features

    include masonry block construction for

    exterior walls, a solar assisted HVAC system,

    solar hot water heater with gas backup, and

    spray foam insulation for different parts of the

    house. It also includes a greywater recycling

    system, tankless hot water heaters, hydronic

    air handlers, and intelligent fire places.

    Other energy and resource efficiency

    features include:

    Energy Star Appliances

    Low VOC paints, stains, adhesives and

    sealants

    Formaldehyde-free wood cabinetry,

    paneling & sheathing

    Whole house automation system

    Whole house lighting control system

    Dual flush water closets

    Low flow shower head and faucets

    Native & drought tolerant plants

    Artificial grass

    Weather controlled irrigation system

    Rainwater harvesting system

    In addition to state-of-the-art green building

    technology, TNAH 2011 features dynamic

    aesthetic design, including fountains, pools,

    solar elements and leading edge art-glass

    work. In addition to the Emerald certification

    under the National Green Building Standard,

    TNAH National Green Building Standard

    Emerald Status, Energy Star certification,

    FGBC (Florida Green Building Coalition)

    Platinum certification, Florida Yards and

    Neighborhoods designation, Florida Water

    Star designation, Progress Energy Home

    Advantage Program

  • www.swher.com

    5400 Suncrest Dr. C-6 El Paso, Tx. 79912

    Ph. (915) 613-4168

    Fx. (915-833-6437

    SENERCONSouthwest Energy Conservation, LLC

    www.energystarelpaso.com

    Change the World...

    One Home at a Time...

    7365 Remcon Circle El Paso, TX 79912

    Builders Outlook 11february 2011

    The National Association of Home

    Builders (NAHB) applauds the

    Occupational Safety and Health

    Administrations (OSHA) decision to

    withdraw the interim fall protection

    guidelines for residential construction that

    were issued in 1995 and revert to the

    previous guidelines.

    Job site safety is the number one priority

    for builders, said NAHB Chairman Bob

    Jones, a home builder from Bloomfield

    Hills, Mich. This action will clarify what

    actions builders need to take to comply with

    OSHA regulations while helping to ensure

    safer work sites.

    The interim guideline, intended as a

    temporary policy, was implemented in 1995

    to allow employers to use alternative

    measures for fall protection without having

    to provide a written, site-specific fall-

    protection plan or prove that conventional

    fall-protection systems were not feasible for

    a particular project. Prior to 1995, OSHA

    required builders to provide conventional

    fall protection (i.e., guardrail systems,

    personal fall-arrest systems or safety-net

    systems) for workers engaged in residential

    construction working six feet or more

    above a lower level. If an employer

    determined that using conventional fall-

    protection methods was not feasible or

    would create a greater hazard, the employer

    had to provide a written fall-protection plan

    utilizing alternative fall protection methods.

    OSHAs new compliance directive (STD

    03-11-002) eliminates the interim guideline

    and reverts back to the pre-1995 regulation.

    In a 2008 letter, NAHB requested that

    OSHA rescind the interim guideline as it

    created confusion about fall protection

    requirements for residential construction.

    The new directive (STD 0311002) will

    require employers to comply with 29 CFR

    1926.501(b)(13), which will eliminate

    confusion in the residential construction

    industry as to which fall-protection

    methods and systems must be used and

    would make compliance with OSHA fall-

    protection requirements for the home

    building industry much simpler and easier

    to understand, as well as put into practice

    according to the letter. The guideline still

    provides flexibility for employers by

    allowing them to implement a written fall-

    protection plan if they determine that

    conventional systems are not feasible or

    create a greater hazard to workers.

    OSHAs Advisory Committee on

    Construction Safety and Health and the

    Occupational Safety and Health State Plan

    Association also supported rescinding the

    interim guideline.

    Construction and roofing companies

    have until June 16, 2011 to comply with the

    new directive.

    For more information on complying with

    fall protection regulations and training

    materials,visit:

    www.nahb.org/fallprotection.

    New OSHA Ruling clarifies key

    residential safety regulations

  • Builders Outlook12FEBRUARY 2011

    Showroom: 2131 Missouri

    915 533 6045 fax 533 6096

    Thomas R. Brown, Owner

  • February 1

    Associates Council meeting

    3:30

    EPAB Office

    February 9

    Board meeting

    3:30

    EPAB Office

    February 10

    Speed Networking

    2:00 4:00

    EPAB Office

    February 22 23

    Office at

    Rally Day

    Austin, Texas

    February 22 26

    TAB Meetings

    Austin, Texas

    March 1

    Associates Council

    3:30

    EPAB Office

    March 10

    Fall Protection

    EPAB Office

    March 17

    Board and General Meeting

    3:30

    EPAB Office

    RENEWALS SODA SPONSOR

    CONDOLENCES

    Aluindes Consultants

    Anaheim Manufacturing

    Baskind & Hosford

    C & L Plumbing

    Classic American Homes

    GMF Custom Homes

    Home of Texas

    Jobe Materials, LP

    Keenan Supply

    Kings Aire

    Prewire of El Paso

    Rassette Homes, Inc.

    Rebath of El Paso/Las Cruces

    Teachers Federal Credit Union

    Winton/Flair Homes

    Builders Outlook 13FEBRUARY2011

    UPCOMING EVENTS

    Thanks to our

    FEBRUARY

    SODA SPONSOR:

    Prewire of El Paso

    Membership News

    Condolences to Doug Borrett and family on the loss of his mother Jackie Borrett

    4655 Cohen El Paso, Texas 79924 915-821-3550 www.tropicanahomes.com

    A tradition of Excellence for over 60 Years

    With sixty years of experience and over 10,000 qualityhomes built in El Paso, Tropicana Homes has become aname synonymous with quality construction. As they con-tinue to grow and expand, community involvement remainsa top priority. Their commitment to the industry and com-munity has made Tropicana Homes the premier builder inEl Paso.

    El Paso Builder of the Year 1988, 1997, 2005

    Texas Builder of the Year 2003

    Texas Industry Leader 2004

    Texas Developer of the Year 2009

  • REALTOR/Builder

    By Sal Masoud

    I would like to wish everyone a happy newyear and I feel optimistic that this year is goingto be a great year for our industry. I especiallyam encouraged after attending for the first timethe Associations Strategic Planning Sessionback in early December last year. We workedtogether to come up with ways to better managethe Association for the benefit of all members. Isaw the level of commitment in the group and Ihope that our effort will fruit positive in thecoming years.

    It has been a while since I gave an update inregards to the Levee Construction Projects.

    The United States Section of the International

    Boundary and Water Commission (USIBWC)held a public meeting of the Rio Grande CitizensForum. The meeting was held in Las Cruces NewMexico on Monday, December 13, 2010. Iattended that meeting as a member of theCitizens Forum Board.

    As discussed in previous articles the USIBWCwas appropriated $220 million in 2009 throughthe American Recovery and Reinvestment Act.This funding will allow for 130.5 miles of leveeconstruction in the Upper Rio Grande, worth$115.4 million, including $75.3 million in NewMexico. Other Upper Rio Grande construction istaking place in El Paso, Hudspeth, and PresidioCounties, Texas. The remainder of Recovery Actfunding is being used in the Lower Rio Grande ofSouth Texas.

    The reason these levee improvements arebeing done is because the Federal EmergencyManagement Agency (FEMA) is updating floodinsurance rate maps and the levees need to becertified and accredited to be shown as providingprotection from the 1% chance storm (100-yearflood) with 3feet of freeboard and adequatestructural integrity.

    The Hatch levee improvement project affects13.6 miles of levee between SalemBridge andBignell Arroyo. Expected completion date isMarch 2011. 13 miles of embankments arecomplete; we are still doing topsoil, gravel, andstructural work. Overall its 74% complete.

    Mesilla Phase 1 levee improvement projectcovers east and west levees from Shalem Bridge

    to Vado Bridge, a total of 33.4 miles of levee.Anticipated completion date is April 2011.

    Mesilla Phase 2 construction just started. Thiscovers 19.6 miles of the east levee betweenRadium Springs and Mesilla Dam. They are stillmobilizing. Anticipated completion date isDecember 2011.

    Canutillo Phase 1 affects 28.6 miles of eastand west levees between Vado

    Bridge and Borderland Bridge (except the eastlevee between Vinton Bridge and

    Borderland Bridge). Anticipated completiondate is May 2011.

    The Sunland Park segment includes parts of ElPasos Upper Valley, covering

    12.8 miles of levee on the east and westbetween Borderland Bridge and the Power Plant.

    Anticipated completion date is February 2012.Work is just beginning there.

    Canutillo Phase 2 covers 5.6 miles of eastlevee from Vinton Bridge to Borderland Bridge.This is a design contract only. Design isscheduled to be completed in May 2011.Construction is subject to future appropriations.This is a difficult segment to design and constructdue to limited USIBWC right-of-way and theproximity of the railroad to the river.

    The Vado segment is a design contract for 1mile of east levee downstream from the VadoBridge. Anticipated completion of design isApril 2011. Construction is subject to futureappropriations.

    The Fabens-Ft. Hancock segment involves15.4 miles of U.S. levee, including

    8.5 miles in Fort Hancock and 6.9 miles inFabens. Anticipated completion date is

    February 2011. The question now is: How do we reach

    certification? The USIBWC will assemble a package for

    FEMA that includes Operations andMaintenance manuals and agreements with otheragencies on structures that pass through thelevees. Construction needs to be completed inorder to submit as-built drawings. Afterconstruction is completed, it takes about threemonths to submit the package to FEMA.

    Once submitted, FEMA may have questionsor may require additional information. FEMAwill look at all of the reaches, which may pose aproblem for the east levee due to outstandingVado and Canutillo Phase 2 projects.

    The USIBWC is currently coordinating withthe City of El Paso and Doa Ana FloodCommission regarding this process. TheUSIBWC is not able to apply for FEMAs A99designation in which the levees are shown on theflood insurance rate map as under construction,with the idea that once construction is completed,FEMA would then change the designation. It isthe responsibility of local entities such as the Cityof El Paso to apply for this designation.

    I also in my capacity as co-chair of the LandUse Council will continue to coordinate with theCity of El Paso and the USIBWC to make surethat the certification process is being followed upproperly in order for development in the upperand lower valley not to suffer.

    Linda Troncoso

    Sal Masoud

    Sales Tax on Real Estate

    Some legislators are advocating for applyingthe combined state-local sales tax rate (8.25%)to all real estate sales transactions that occur inTexas. A sales tax on real estate would beassessed on real estate when ownership of theproperty is sold or transferred from one party toanother (also referred to as a transfer tax). Asales tax on real estate would also apply to long-term leases. Proponents argue applying the salestax rate to all real estate transactions couldeliminate the burden of school property taxes inTexas. In 2007, school property taxes accountedfor 53.8% of total property taxes levied.

    A sales tax on real estate transactions wouldmean fewer transactions take place and realproperty is less affordable. Any sales tax rateapplied to the real estate transaction wouldrequire purchasers to come up with tens ofthousands of dollars at the closing table to paythe new sales tax on real estate, in addition todown payment and closing costs. Some realestate experts and economists have opined asales tax rate of over 19.5% would be requiredto replace school property taxes in Texas, withthe sales tax rate increasing every year after tokeep up with fewer sales transactions as demandgoes down.

    Applying the sales tax rate to all real estatetransactions in Texas would be a major burdento buyers and sellers. Additionally, this type oftax would have a negative impact on housingcosts and the real estate market as a whole;therefore, economic development would beseverely affected throughout Texas. Finally,because of the volatility of sales taxes, many

    experts believe these taxes are a particularlypoor revenue source for the general operatingbudgets of state and local governments.

    While some legislators have advocated forbroadening the sales tax to real estatetransactions, not one current Texas legislatorhas filed a bill to create this new taxing scheme.The outlook for this type of new tax to be passedby the legislature and signed into law by thegovernor is remote at best. Based on initialinformation from the comptrollers office andthe Real Estate Center at Texas A&M, schoolproperty taxes levied by school districts in 2007were $18.9 billion. So in order to replace schoolproperty taxes with a sales tax on real estate, itwould require nearly a 20% sales tax rate.During the last two years, the real estate marketin Texas has seen a decrease in sales volume;therefore, the sales tax rate would have beenover 23% in 2008 and over 26% in 2009 just toraise the same amount of revenue as the prioryear.

    Texas State Legislature will meet fromJanuary 11, 2011 May 30, 2011 for to takecare of all legislative business for the years2011-2012. Please contact your Build PAC tovoice your opinion of the states legislativebusiness. They a can be contacted at:[email protected]. You can accessa mobile version of TLO (Texas LegislatureOnline) through the Texas Legislative Council'sportal site http://www.txlegis.com on aBlackBerry, Windows Mobile, or iPhonedevice.

    February Meeting: 2/10/11 from 12-2PM atthe Greater El Paso Association ofREALTORS.

    Speaker will be Saratoga Homes and theirEducation Topic will be Green Building.

    Fostering harmony amongst home builders,real estate professionals, and affiliate companies

    Land Use

    GUEST COLUMN

    Builders Outlook14 JANUARY2011

    Industry Reports

    February is upon us already and mostcompanies unknowingly are out ofcompliance. How? Why ? You may ask. Isyour OSHA 300 Log ready to be posted onFebruary 1? Most employers are unaware ofthis mandatory OSHA Regulation which ifnot done, leaves you out of compliance andsubject to penalty

    The OSHA Log of Work Related Injuries,most commonly referred to as The OSHA300 Log corresponds with OSHAsRecording and Reporting OccupationalInjuries and Illnesses Standard, 29 CFR1904. The purpose of this Log is to recordand classify work-related injuries andillnesses, and the extent of each.

    Why the OSHA Log is important to you

    as an employer.Aside from this being a mandatory

    compliance regulation , this Log is you andyour companies best resource whenaddressing workplace safety. For example:Our company was contacted by a businessowner who stated he had been cited for notcomplying with 29CFR 1904(posting ofthe OSHA 300 Log. So we then assistedthis company by providing, trainingpersonnel how to use, and assistedmaintaining the Log. So after recording allworkplace injuries and illnesses, the Logwas used as a guide to determine what themost common injuries were. We could thenfocus on Hazard Assessment in the areaswhere the most injuries occurred. After

    hazard correction through the guide of the300 Log, this companys injury reportOSHA300 Log for the next year wentfrom 34 total injuries the year before to 4workplace injuries.

    Remember: Record only work-related injuries and

    illnesses. Post the summary log in a common area

    where it is readily available for employeeviewing.

    No recordable injuries or illnesses: Post zeroson the total line.

    It must be certified by a company executive. Posting period is from February 1 through

    April 30, 2011.

    Safety Tool from OSHA

    Angela Ochoa

    GEPAR

    Lupe AlanizA&E Environmental &

    Safety Consultants

  • executive officersGreg bowling, President

    Tropicana Homes

    del Huit, vice President

    Cardel Design Group

    frank arroyos, secretary/treasurer

    Cisco Homes

    eric lowenberg, associates council

    Emser Tile & Stone

    Kelly sorenson, immediate Past President

    Vision Consultants

    ray adauto, executive vice President

    El Paso Association of Builders

    couNcil/committee cHairsAffordable Builders Council Bobby Bowling IV

    Associates Council Eric Lowenberg

    Build PAC El Paso Randy Bowling

    Desert Green Building Council Javier Ruiz

    Government Affairs Council Pat Woods

    Industry Promotions Kelly Sorenson

    Land Use Council Linda Troncoso

    Sal Masoud

    Adams Pro AM Committee David Bogas

    Young Designer Award John Chaney

    Code Committee Kelly OLeary

    Home Show Sam Shallenberger

    Remodelors Miguel Herrera

    Membership Drive Mike Santamaria

    Finance Committee Kathy Carillo

    Education Committee Frank Spencer

    advisorY to tHe boardJ. Crawford Kerr, Attorney, Firth, Johnson

    & Martinez

    board of directorsDanny Andrus, Trinity Homes

    John Arranda, Southwest Securities Bank, FSB

    Joe Bernal, Joe Bernal Insurance

    David Bogas, EPT Communities

    Doug Borrett, Karam Co.

    Sergio Cuartas, BIC HomesEdmundo Dena, Accent Homes

    Ted Escobedo, Snappy Publishing

    Art Garcia, El Paso Door

    Juanita Garcia, ICON Custom Home Builder,LLC

    Danny Gerard, Desert Agave Builders, LLC

    Miguel Herrera, Simply the Best Custom Homes

    Lorraine Huit, Cardel Design Group

    Walter Lujan, Dawco Home Builders

    Bruce Meyer, JDW Insurance

    Robert Najera, Joseph Homes

    Kathy Parry, Hunt Communities

    Bob Paschich, Oeste Homes

    Kathy Rose, Builders Source

    Regina Sanchez, Compass Bank

    Sam Shallenberger, Western Wholesale

    Frank Torres, GMF Homes

    Javier Veloz, Zia Homes

    Paul Zacour, Zacour & Associates

    tab state directors Doug Borrett, Karam Co., Life Director

    Randy Bowling, Tropicana Homes

    NatioNal directors

    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

    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.

    2011 Builders 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

    Pat Woods

    EH Baeza

    Bobby Bowling IV.

    Demetrio Jimenez

    NatioNal associatioN of

    Home builders

    (800) 368-5242

    texas associatioN of

    builders

    (800)252-3625

    www.elpasobuilders.com

    EPAB ON THE SCENE

    FEBRUARY 2011

    2011 IBS

    The International Builders Show was held

    in Orlando, Florida January 21-25.

    Several members from El Paso attended

    the show and also participated in seminars

    sponsored by the NAHB. President Greg

    Bowling led our delegation to the event.

    Pictured are some of the displays along

    with special celebrities like Chef Yan of

    Yan Can Cook fame (pictured with Ray

    Adauto). The show was compact and easy

    to get around this year. Attendance was

    off a little due to the economy and a late

    major weather problem up the east coast,

    cancelling some of the plans for those in

    those states. The IBS returns to Orlando

    in 2012.

  • 01_Outlook_p01 copy.pdf02_Outlook_p0203_Outlook_p0304_Outlook_p04-205_Outlook_p0506_Outlook_p0607_Outlook_p0708_09_Outlook_CSV2(Uploading)10_Outlook_p1011_Outlook_p1112_Outlook_p1213_Outlook_p1314_Outlook_p1415_Outlook_p1516_Outlook_p16