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Builders Outlook Issue 2 º2011

Building El Paso’s tomorrow today

TEXAS BUILdERS UNITE AT cAPITOL Taxes, fees, property rights among top issues

Rally Day 2011: FEBRUaRy 22-23 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.

INSIDE> Meet our Local Legislators of the 82nd session

EXPLORE AUSTIN:

PRSRT STD U.S. POSTAGE PAID EL PASO TX PERMIT NO. 429

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.

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

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Builders Outlook legislation, border county regulatory authority, first environmental State court, and historic county ethics legislation.

Rally day 2011: FEBRUaRy 22-23 Meet our Local Legislators of the 82nd session Jose Rodriguez, (D) Senator, District 29 Jose 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 JuanAlamo 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 nation’s 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

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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. Pickett’s 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 YMCA´s 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 501C3 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.

Builders Outlook Chente Quintanilla, (D) 75th

DistrictRepresentative Innocente “Chente” Quintanilla represents District 75, that stretches from past Tornillo, Horizon City all the way to parts of Lee Trevino on the eastside. The large land area that this district encompasses is going to be where most of the growth for our area takes place. Within the area are the colonias that the 81st Legislature felt compelled to focus it’s efforts on. Through work at the legislative committee level and in meetings with others the El Paso Association of Builders has maintained a good working relationship with Representative Quintanilla. Mr. Quintanilla is an educator by trade and is intimately involved in ensuring that his poorer parts of the district do not lose funding, and that his more affluent school districts are not discriminated upon by any Robin Hood legislation. Representative Quintanilla is regular contributor to the EPAB Builders Outlook newspaper where his subject matter concentrates on issues relating to building trades, legislation, and progress within his legislative district. Representative Quintanilla entered the state legislature in 2003. His staff has worked with the El Paso Association of Builders on a variety of issues during those years especially on the issue of county authority.

Marisa Marquez, (D) 77th District Representative Marisa Marquez represents district 77 in El Paso. This district runs from about Viscount and Hawkins north to Fred Wilson,

then encapsulates all of central and downtown El Paso, then around to areas around Kern and Rim Road. The diversity of constituants in this district is staggering. Representative Marquez was elected on November 4, 2008 and is serving her first term in the Texas House of Representatives. Representative Marquez graduated from Faith Christian Academy as Valedictorian in 1996. She completed her Bachelor of Business Administration in Finance and Business Economics in 2000 from University of Notre Dame. In her initial legislative year Representative Marquez worked with the El Paso Association of Builders and Texas Association of Builders to find a compromise on county authority legislation. Representative Marquez was elected by the Legislative Study Group (LSG) House Caucus as the Ex-Oficio board member to represent the freshman class on the LSG board, the only freshman position on the LSG executive committee. She is also a member of the Mexican American Legislative Caucus. She sits on three committees: Corrections, County Affairs, and Rules & Resolutions. No assignments have been made for the 82 Legislature at press time.

Naomi Gonzalez, (D) 76th District Naomi R. Gonzalez is an attorney and politician from El Paso, Texas. She is a Democratic member of the Texas House of Representatives, where she represents the 76th district in El Paso County. Gonzalez graduated from Jefferson High School in El Paso, before going to Our Lady of the Lake University in San Antonio and law school at Saint Mary's University. On graduating law school, she

worked at El Paso law firms before joining the El Paso County Attorney's office in 2007 as an Assistant County Attorney. Gonzalez defeated seven-term incumbent Norma Chávez in the 2010 Democratic primary runoff to capture a seat in the Texas House, capitalizing on a series of high-profile controversies surrounding Chávez. Despite running against a longtime incumbent, Gonzalez's campaign received the support of numerous local political players, including the El Paso Times, state senator Eliot Shapleigh and other members of the county's legislative delegation. The race was highly negative and personal, with each candidate launching attacks against the other. In the Democratic primary election held on March 2, Gonzalez polled 48% of the vote to Chávez's 46%, with a minor candidate taking the remainder.

Dee Margo, (R) District 78 Dee R. Donald Margo, better know as Dee, is the Representative for District 78. Dee is the only Republican representative and only member of the El Paso Association of Builders in the Texas 82nd Legislature. Dee is CEO of the JDW Insurance company and has worked there for over 30 years. He is married to Adair, a prominent artist and philanthropist. Dee ran a successful campaign in 2010 to unseat the incumbent Pat Haggerty. Dee’s district weaves through the Northeast side of El Paso over to the Westside including the Upper Valley communities of Anthony and Canutillo. A resident of El Paso for over four decades, Dee has dedicated his life to serving others. He is deeply committed to fulfilling his civic duty, and has taken leadership roles in numerous groups working to

better our community and improve our quality of life. Those areas include jobs and infrastructure, education, health care and water quality. He has been a strong leader in growing and diversifying El Paso’s economy as an active member of the Greater El Paso Chamber of Commerce, the El Paso Regional Economic Development Corporation, and the Paso Del Norte Group. Dee also helped found the Border Fund, a non-profit foundation providing over $26 million in charitable grants to local volunteer groups. His firm is the principal partner in Operation Noel, providing over 13,000 coats for needy El Paso children, from toddlers to teenagers, each Christmas. A current member of the World Presidents Organization, and past member of the Young Presidents Organization, Dee has been honored as an exemplary role model in business ethics. Dee has also been recognized for his generous work on behalf of others. He received the Department of the Army’s Outstanding Civilian Service Medal for his work on behalf of Ft. Bliss, the El Paso Chamber of Commerce’s Star Award, and the League of Women Voters’ BRAVO Award. He was inducted into Junior Achievement’s El Paso Business Hall of Fame in 1999. Born on February 3, 1952, Dee attended Vanderbilt University on a football scholarship where he received a bachelor’s degree in history and economics, and where he met his wife Adair, also a Vanderbilt graduate. This is Dee’s freshman year as a legislature but he has been intimately involved in Republican politics for decades. His connections with the Governor and the leadership of the Senate and House give Dee experience that few freshmen legislators have.

President’s Message Greg Bowling President, El Paso Association of Builders

Get ready for Austin! It’s 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. It’s 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 running 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 delegations 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 represented with a dozen or so members. Thanks for going. January also brought the first board meeting 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 governance of the association. We have taken steps to ensure that and have made policy changes to enforce those steps. Finally I’d 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 success especially on Saturday when the crowds packed the Convention Center. At the Tropicana display we literally had thousands 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!

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4 FEBRUARY 2011

Builders Outlook

Rally day 2011: FEBRUaRy 22-23

EXPLORE AUSTIN: The Capitol: We’ll be meeting in the front of this fabulous building for Rally Day. Constructed out of pink granite and limestone the Texas Capitol is an extraordinary example of late 19th century public architecture and is widely recognized as one of the nations most distinguished state capitols. It was placed on the National Register of Historic Places in 1970 and designated a National Historic Landmark in 1986 for its "significant contribution to American history." Sited on one of Austin's highest points, the Capitol anchors the northern periphery of the downtown commercial district and commands a sweeping view towards the Colorado River from its southern façade. The main campus of The University of Texas at Austin is situated four blocks to the north. Completed in 1888 as the winning design from a national competition, the Capitol's style is Renaissance Revival, based on the architecture of 15th-century Italy and characterized by classical orders, round arches and symmetrical composition. The structural exterior walls are "sunset red" granite, quarried just 50 miles from the

Perspective Ray Adauto, Executive Vice President EPAB

This issue is dedicated to the upcoming Rally Day in Austin coming up February 22-23, followed by the TAB meetings 2426. This happens only every other year when the legislature is in session. That doesn’t mean the government stops when there is no session it just means that this is the designated time to add bills that come up for action or inaction depending on who gets the votes. Everyone is talking about the budget shortfall and how cuts are going to be made in all areas of Texas government. What we are concerned with as an association is that some elected yoyo doesn’t make building a home or selling the parts for it any harder than it already is by enacting laws that raise prices and don’t accomplish anything else. It’s a job that we depend on a select group of El Pasoans to take our voice to the legislature and also to TAB. Rally Day is important for you and us and that’s why it’s important you go and join us that day. Our Rally Day calendar is almost full (at time of press) so we are looking forward to meeting with our delegation. Join us for the day. I’m sure you’ll find it a great experience.

Continued from front cover

site. Additional structural support is provided by masonry walls and cast iron columns and beams. The foundation is limestone. Texas paid for the construction not in dollars, but in land: some three million acres in the Texas Panhandle that would later become the famous XIT Ranch. An extraordinary edifice by any measure, the 1888 Texas Capitol is the largest in gross square footage of all state capitols and is second in total size only to the National Capitol in Washington, D.C. Like several other state capitols, the 1888 Texas Capitol surpasses the National Capitol in height, rising almost 15 feet above its Washington counterpart. The Bob Bullock Texas History Museum: Relive the pages of Texas history at the Bob Bullock Texas State History Museum. Interactive exhibits, artifacts, an IMAX Theatre and the multisensory Texas Spirit Theatre bring the myth, legend and fact of Texas all together under one roof. The IMAX theatre features first run movies including those fancy new 3D movies but only 5 stories taller than what you’ll see at Tinsletown. It’s only blocks away from your stay downtown.

South Congress Avenue: This is one of my favorite spots to eat and see a lighter version of Austin weird. South Congress is across the river from downtown and houses some really good food and some really cool shops. Guerro’s is a favorite haunt for us as we experience what I call Austin-Mex (heavy on the Mex here) at it’s very finest. World famous margaritas, busy waiters, and a full house generally welcome you any time of day or night. Remember that in Austin the way they say the name is closer to Gwer-ohs with a hard g at the front. There’s a lot of that in Austin. Try finding Man-shack. You’ll be surprised that it’s really Manchaca. Weird. Just across the street is perhaps some of the best pizza in town. It’s Home SliceQueen of Pies and the smell of fresh pizza opens up your appetite as you drive or walk by. Don’t miss South Congress. It’s really a good place for weird shops and art galleries. You’ll also see the hottest trend in food- food trailers! An Airstream with the giant cupcake (Hey Cupcake!) is normally parked at the end of South Congress.

Finally you could add Hut’s Burgers, Chuy’s, or other great Austin only restaurants to my list of must do’s. But I’d be remiss if I didn’t point you to some other places like the great BBQ on nearly every other corner, or to Eddie V’s, or even some out of this world Asian bistros like Suzi’s or late night at the Magnolia. Sure you can venture out to the campus of UT, or go the LBJ Museum or do some shopping at The Domain (home of Tiffany’s and Neiman Marcus). All of this is good but I think if you really want

to know a city look at its food and it’ll tell you about its soul. Austin. From Amy’s ice cream to Z-Tejas. Where else can you get your weird on and enjoy it so much. For additional information you can look up the dozens of websites dedicated to Austin visits.

Lots of work to do in Austin and at home The year has already had some good activity at the EPAB. Our first regularly scheduled board meeting took place the week after the National Association of Home Builders meeting in Orlando, the home of the frozen orange juice. Man was it cold. The IBS had about 30% fewer displays and attendees, but as President Greg Bowling said this time the show was easier to get around to and visit with vendors. The vendors said to us that they were pleased with the quality of the turnout, saying that their purpose was sales and they were getting them. Both Greg and I went around and thanked the vendors for showing up as this is a major budget item for the NAHB. All in all it was a quick and interesting trip. I still vote for Las Vegas and really can’t wait until it goes back there in a couple of years. By then we should be moving along nicely and sales of new homes should be returning on track. The Spring Home Show right here in El Paso was held the weekend of January 2325. I would like to publicly thank Greg Bowling and Sam Shallenberger for their leadership in coordinating the show with the promoter. While we can’t please everyone I have to say that we were happy with the number of displays and vendor participation. It is especially hard to lay out money for a booth when the economy is hurting, but we had 25 member companies participate and we thank you. Doing a show, any show can help you get potential suspects, because let’s be honest, you have only suspects until you turn

...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 don’t 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. them into prospects. Where else could you have reached out to thousands of potential suspects that weekend? Not even the mall my friends. Certainly the quality of people who attended had buying on the mind. There is a pent up demand for services and products as people look to improve their home or apartment. Sam and I are working on some ideas for the future and we hope that includes you. Finally 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 don’t 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. That’s the answer that I got face to face with City officials. First of all the City is not here to “protect consumers”, especially from themselves. The City said it all came to a head with the roofing companies that came into El Paso during a hail storm late in 09. Consumer

complaints were escalating and the City found themselves in a situation where the bond amount of $10,000 just didn’t cover many roofs. Well here’s a news flash: a bond is not insurance and raising the bond for this purpose just opens a target for shysters and their accomplishing attorneys. The requirement for the higher bond is causing many to do without and or to have to personally guarantee the bond. The second reason for the increase, again according to a City official, is to root out the “guys who shouldn’t be in business to start with”. Can you say what??????? Since when is it the City’s job to force people, good people, out of business just because the new rules for bonds can’t be met? Where is the justice in this and where is legality of it? We are trying to work with Development Services and the City attorney. But this small preview of what they are thinking should send chills down your bones and in every El Paso business person’s bones. Today it’s us; soon you’ll see City officials inside the operating room telling the doctors how to operate. Just wait.

Builders Outlook

Guest Perspective

Chente Quintanilla State Representative

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.

Guest Perspective

Silvestre Reyes US Congress

$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.

FEBRUARY 2011

$28 billion dollar shortfall to impact Texans significantly 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.

Health care repeal will shove costs to property tax payers 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 region’s 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 industry’s 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 doctor’s 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.

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Builders Outlook

nation’s home builders elect leadership for 2011 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

www.nahb.com National Association of Home Builders

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.

nahb chairman’s perspective on President’s 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 Obama’s State of the Union address. “As President Obama charts a course for the nation’s 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 government’s longstanding commitment to housing.”

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Builders Outlook

FEBRUARY 2011

.FEBRUARY 2011

EPAB ON THE SCENE

The Spring Home Show presented by the EPAB was held the weekend of January 2123 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 vendors presented their goods the attendees were treated to two performances from the St. Pius X church folklorico group comprised of special 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.

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10 FEBRUARY 2011 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 you’re 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 NAHB’s 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 home’s 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

Builders Outlook

february 2011

New OSHA Ruling clarifies key residential safety regulations The National Association of Home Builders (NAHB) applauds the Occupational Safety and Health Administration’s (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 fallprotection 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 fallprotection 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. OSHA’s new compliance directive (STD 03-11-002) eliminates the interim guideline

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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 03–11–002) 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 fallprotection 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 fallprotection plan if they determine that conventional systems are not feasible or create a greater hazard to workers. OSHA’s 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.

12FEBRUARY 2011

Builders Outlook

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Builders Outlook

FEBRUARY 2011

Membership News UPCOMING EVENTS February 1 Associates Council meeting 3:30 EPAB Office

February 10 Speed Networking 2:00 – 4:00 EPAB Office

February 9 Board meeting 3:30 EPAB Office

February 22 – 23 Office at Rally Day Austin, Texas

February 22 – 26 TAB Meetings Austin, Texas

March 10 Fall Protection EPAB Office

March 1 Associates Council 3:30 EPAB Office

March 17 Board and General Meeting 3:30 EPAB Office

RENEWALS

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GMF Custom Homes

Prewire of El Paso

Anaheim Manufacturing

Home of Texas

Rassette Homes, Inc.

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Jobe Materials, LP

Rebath of El Paso/Las Cruces

C & L Plumbing

Keenan Supply

Teachers Federal Credit Union

Classic American Homes

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CONDOLENCES

Thanks to our FEBRUARY SODA SPONSOR: Prewire of El Paso

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

A tradition of Excellence for over 60 Years 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 With sixty years of experience and over 10,000 quality homes built in El Paso, Tropicana Homes has become a name synonymous with quality construction. As they continue to grow and expand, community involvement remains a top priority. Their commitment to the industry and community has made Tropicana Homes the premier builder in El Paso.

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14 JANUARY 2011

Builders Outlook

Industry Reports REALTOR/Builder Angela Ochoa GEPAR

Sales Tax on Real Estate Some legislators are advocating for applying the combined state-local sales tax rate (8.25%) to all real estate sales transactions that occur in Texas. A sales tax on real estate would be assessed on real estate when ownership of the property is sold or transferred from one party to another (also referred to as a transfer tax). A sales tax on real estate would also apply to longterm leases. Proponents argue applying the sales tax rate to all real estate transactions could eliminate the burden of school property taxes in Texas. In 2007, school property taxes accounted for 53.8% of total property taxes levied.

A sales tax on real estate transactions would mean fewer transactions take place and real property is less affordable. Any sales tax rate applied to the real estate transaction would require purchasers to come up with tens of thousands of dollars at the closing table to pay the new sales tax on real estate, in addition to down payment and closing costs. Some real estate experts and economists have opined a sales tax rate of over 19.5% would be required to replace school property taxes in Texas, with the sales tax rate increasing every year after to keep up with fewer sales transactions as demand goes down. Applying the sales tax rate to all real estate transactions in Texas would be a major burden to buyers and sellers. Additionally, this type of tax would have a negative impact on housing costs and the real estate market as a whole; therefore, economic development would be severely affected throughout Texas. Finally, because of the volatility of sales taxes, many

experts believe these taxes are a particularly poor revenue source for the general operating budgets of state and local governments. While some legislators have advocated for broadening the sales tax to real estate transactions, not one current Texas legislator has filed a bill to create this new taxing scheme. The outlook for this type of new tax to be passed by the legislature and signed into law by the governor is remote at best. Based on initial information from the comptroller’s office and the Real Estate Center at Texas A&M, school property taxes levied by school districts in 2007 were $18.9 billion. So in order to replace school property taxes with a sales tax on real estate, it would require nearly a 20% sales tax rate. During the last two years, the real estate market in Texas has seen a decrease in sales volume; therefore, the sales tax rate would have been over 23% in 2008 and over 26% in 2009 just to raise the same amount of revenue as the prior year.

Texas State Legislature will meet from January 11, 2011 – May 30, 2011 for to take care of all legislative business for the years 2011-2012. Please contact your Build PAC to voice your opinion of the state’s legislative business. They a can be contacted at: buildpac@elpasobuilders.com. You can access a mobile version of TLO (Texas Legislature Online) through the Texas Legislative Council's portal site http://www.txlegis.com on a BlackBerry, Windows Mobile, or iPhone device. February Meeting: 2/10/11 from 12-2PM at the Greater El Paso Association of REALTORS®. Speaker will be Saratoga Homes and their Education Topic will be Green Building. Fostering harmony amongst home builders, real estate professionals, and affiliate companies

Land Use Sal Masoud

Linda Troncoso

By Sal Masoud I would like to wish everyone a happy new year and I feel optimistic that this year is going to be a great year for our industry. I especially am encouraged after attending for the first time the Association’s Strategic Planning Session back in early December last year. We worked together to come up with ways to better manage the Association for the benefit of all members. I saw the level of commitment in the group and I hope that our effort will fruit positive in the coming years. It has been a while since I gave an update in regards to the Levee Construction Projects. The United States Section of the International

Mesilla Phase 1 levee improvement project covers 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. This covers 19.6 miles of the east levee between Radium Springs and Mesilla Dam. They are still mobilizing. Anticipated completion date is December 2011. Canutillo Phase 1 affects 28.6 miles of east and west levees between Vado Bridge and Borderland Bridge (except the east levee between Vinton Bridge and Borderland Bridge). Anticipated completion date is May 2011. The Sunland Park segment includes parts of El Paso’s Upper Valley, covering 12.8 miles of levee on the east and west between 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 east levee from Vinton Bridge to Borderland Bridge. This is a design contract only. Design is scheduled to be completed in May 2011. Construction is subject to future appropriations. This is a difficult segment to design and construct due to limited USIBWC right-of-way and the proximity of the railroad to the river. The Vado segment is a design contract for 1 mile of east levee downstream from the Vado Bridge. Anticipated completion of design is April 2011. Construction is subject to future appropriations. The Fabens-Ft. Hancock segment involves 15.4 miles of U.S. levee, including

February is upon us already and most companies unknowingly are out of compliance. How? Why ? You may ask. Is your OSHA 300 Log ready to be posted on February 1? Most employers are unaware of this mandatory OSHA Regulation which if not done, leaves you out of compliance and subject to penalty The OSHA Log of Work Related Injuries, most commonly referred to as “The OSHA 300 Log“ corresponds with OSHA’s Recording and Reporting Occupational Injuries and Illnesses Standard, 29 CFR 1904. The purpose of this Log is to record and classify work-related injuries and illnesses, 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 and your companies best resource when addressing workplace safety. For example: Our company was contacted by a business owner who stated he had been cited for not complying with “29CFR 1904”(posting of the OSHA 300 Log”. So we then assisted this company by providing, training personnel how to use, and assisted maintaining the Log. So after recording all workplace injuries and illnesses, the Log was used as a guide to determine what the most common injuries were. We could then focus on Hazard Assessment in the areas where the most injuries occurred. After

Boundary and Water Commission (USIBWC) held a public meeting of the Rio Grande Citizens Forum. The meeting was held in Las Cruces New Mexico on Monday, December 13, 2010. I attended that meeting as a member of the Citizens Forum Board. As discussed in previous articles the USIBWC was appropriated $220 million in 2009 through the American Recovery and Reinvestment Act. This funding will allow for 130.5 miles of levee construction in the Upper Rio Grande, worth $115.4 million, including $75.3 million in New Mexico. Other Upper Rio Grande construction is taking place in El Paso, Hudspeth, and Presidio Counties, Texas. The remainder of Recovery Act funding is being used in the Lower Rio Grande of South Texas. The reason these levee improvements are being done is because the Federal Emergency Management Agency (FEMA) is updating flood insurance rate maps and the levees need to be certified and accredited to be shown as providing protection from the 1% chance storm (100-year flood) with 3feet of freeboard and adequate structural integrity. The Hatch levee improvement project affects 13.6 miles of levee between SalemBridge and Bignell Arroyo. Expected completion date is March 2011. 13 miles of embankments are complete; we are still doing topsoil, gravel, and structural work. Overall it’s 74% complete.

8.5 miles in Fort Hancock and 6.9 miles in Fabens. 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 and Maintenance manuals and agreements with other agencies on structures that pass through the levees. Construction needs to be completed in order to submit as-built drawings. After construction is completed, it takes about three months to submit the package to FEMA. Once submitted, FEMA may have questions or may require additional information. FEMA will look at all of the reaches, which may pose a problem for the east levee due to outstanding Vado and Canutillo Phase 2 projects. The USIBWC is currently coordinating with the City of El Paso and Doña Ana Flood Commission regarding this process. The USIBWC is not able to apply for FEMA’s A99 designation in which the levees are shown on the flood insurance rate map as under construction, with the idea that once construction is completed, FEMA would then change the designation. It is the responsibility of local entities such as the City of El Paso to apply for this designation. I also in my capacity as co-chair of the Land Use Council will continue to coordinate with the City of El Paso and the USIBWC to make sure that the certification process is being followed up properly in order for development in the upper and lower valley not to suffer.

GUEST COLUMN Safety Tool from OSHA

Lupe Alaniz A&E Environmental & Safety Consultants

hazard correction through the guide of the 300 Log, this company’s injury report “OSHA300 Log” for the next year went from 34 total injuries the year before to 4 workplace injuries. Remember: • Record only work-related injuries and illnesses. • Post the summary log in a common area where it is readily available for employee viewing. • No recordable injuries or illnesses: Post zeros on the total line. • It must be certified by a company executive. • Posting period is from February 1 through April 30, 2011.

FEBRUARY 2011

EPAB ON THE SCENE 2011 IBS

www.elpasobuilders.com 6046 Surety Dr. El Paso, TX 79905 915778-5387 • Fax: 915-772-3038

■ executive officers Greg bowling, President Tropicana Homes

Bobby Bowling IV. Demetrio Jimenez

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

NatioNal associatioN of Home builders (800) 368-5242

texas associatioN of builders (800)252-3625

■ couNcil/committee cHairs Affordable 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 O’Leary Home Show Sam Shallenberger Remodelors Miguel Herrera Membership Drive Mike Santamaria Finance Committee Kathy Carillo Education Committee Frank Spencer ■ advisorY to tHe board J. Crawford Kerr, Attorney, Firth, Johnson & Martinez ■ board of directors Danny 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 Homes Edmundo 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

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 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

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.

■ tab state directors Doug Borrett, Karam Co., Life Director Randy Bowling, Tropicana Homes

■ NatioNal directors

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.