Builders Outlook 6.12

EL PASO

ASSOCIATION

years

DIGITAL EDITION OF

BUILDERS

B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 19 4 6

www.elpasobuilders.com www.epbuilders.org

Builders New-Home Sales and Starts on the rise Sales of newly built, single-family homes rose 7.6 percent to a seasonally adjusted annual rate of 369,000 units in May, according to newly released data from HUD and the U.S. Census Bureau.

“The relatively strong increase in newhome sales this May is an indication that more potential home buyers are being drawn to the market by today’s excellent mortgage rates as well as firming conditions in some local economies,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “In addition, more people are recognizing the benefits that new homes can provide beyond what’s available in the existing housing stock in terms of energy efficiency, updated technology and other features.”

“May’s sales report is a welcome sign that the market has returned to a more solid growth path following lackluster reports in March and April, and is in keeping with our expectations for

continued, steady improvement through the end of this year,” said NAHB Chief Economist David Crowe. “While the current sales rate remains low by historical standards and continues to be constrained by challenges related to credit availability for builders and faulty appraisals, the ongoing decline in the month’s supply of new homes will necessitate additional construction in certain markets going forward.”

Regionally, new-home sales were mixed in May. While the Northeast and South posted solid gains of 36.7 percent and 12.7 percent, respectively, the Midwest and West posted respective declines of 10.6 percent and 3.5 percent.

The inventory of new homes for sale was almost unchanged at a low level of 145,000 units in May, reflecting a historically slim, 4.7-month supply at the current sales pace.

Single-Family Housing Starts Rise 3.2 Percent in May Single-family housing production increased for a third consecutive month and builders pulled more permits for both single- and multifamily construction in May, according to newly released figures from HUD and the U.S. Census Bureau.

The data reveals that the seasonally adjusted annual rate of single-family housing starts rose 3.2 percent to 516,000 units – the best pace since December of 2011.

“Today’s report is a good sign that builders are cautiously moving to replenish their depleted inventories of

utlook single-family homes in response to increasing buyer demand,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “In certain housing markets across the country, the momentum toward recovery

The latest data provides evidence of the kind of slow but steady growth that we expect to see in housing production through the end of the year, and shows that housing continues to regain strength regardless of some weakening in other parts of the economy.”

-David Crowe.

NAHB Chief Economist

is gradually building, though tough credit conditions and inaccurate appraisal values continue to weigh down that progress.”

“The latest data provides evidence of the kind of slow but steady growth that we expect to see in housing production through the end of the year, and shows that housing continues to regain strength regardless of some weakening in other

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parts of the economy,” said NAHB Chief Economist David Crowe. “Particularly encouraging are the gains in permit issuance posted in both the single-family and multifamily sectors in May, which are indicative of builders’ intentions to start new projects in the coming months.”

While overall housing starts posted a 4.8 percent decline to a seasonally adjusted annual rate of 708,000 units in May, all of the decrease was on the more volatile multifamily side. Single-family starts rose 3.2 percent to 516,000 units as multifamily starts declined 21.3 percent to 192,000 units.

Regionally, dips on the multifamily side drove down combined housing starts in all but the West, which registered a 14.4 percent gain. The Northeast, Midwest and South posted declines in total housing starts of 20.3 percent, 13.3 percent and 6.1 percent, respectively.

However, strong gains in new permitting activity for both single-family and multifamily homes drove the combined permitting number for May up 7.9 percent to a seasonally adjusted annual rate of 780,000 units – the strongest pace since September of 2008.

Single-family permits were up 4.0 percent to 494,000 units (best pace since March of 2010) while multifamily permits gained 15.3 percent to 286,000 units.7 Three out of four regions posted gains in combined permit activity in May. The Midwest, South and West posted gains of 6.1 percent, 11.1 percent and 10.5 percent, respectively, while the Northeast registered an 8.0 percent decline.

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

Congressman visits El Paso Builders In a special visit by Congressman “Quico” Canseco, R, Texas District 23, members of the association were able to have concerns heard and offer suggestions to the legislator.

Canseco, whose district encompasses a land mass from San Antonio to East El Paso along the border made his first visit to the EPAB on Friday, June 22. Members were invited to the event to show the Congressman concerns with how Congress and other Federal agencies were either helping or hurting new home construction. The Congressman offered no hold barred replies to questions and concerns from the audience. “I believe that the Federal Government is in many ways a hindrance to the private sector, but I also understand the need for government involvement in order to keep a balance” he said with respect to a question on overzealous agencies within the federal authority. “Make no mistake, I fight for home builders every day, and I understand that we need to allow builders to build and not put more roadblocks” Canseco said.

Questions from the members ranged from immigration to the EPA authority and Mr. Canseco took each question and carefully and diligently answered each question put forward. “I have no doubt that we could use a larger number of elected officials like the Congressman at all levels of government”, said Bobby Bowling IV. His opinion was echoed by others in the audience including President Frank Arroyos and Vice President Edmundo Dena. “It was refreshing to hear from a Congressman that he understand our concerns and the plight of home building in the country,” Arroyos said. “I was impressed with his common sense answers and thorough knowledge of issues beyond housing,” Edmundo Dena said.

No one was more impressed than Sam Shallenberger who called the visit one of the most important events for the association. “I think that Congressman Canseco has a great grasp of what we as business people go through each day, and he said the right things to the right people. I thought this was one of the best meetings I’ve ever been in with an elected official, certainly a real treat when the intelligence is translated to common sense”, Sam said. “It truly was a great meeting,” said Anthony Mullen of MTI Ready MIX. The EPAB presented the Congressman with a logoed association shirt and a cold weather jacket. “I will take a picture of me in this (the jacket) in front of the Capitol and send it to you,” the Congressman told the crowd. The association will continue to meet with the Congressman on a regular basis in order to ensure our issues are in front of him.

See more photos of this event on page 8

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Builders Outlook

President’s Message | I want to thank the membership drive teams and captains for the hard work getting us the 98 new members. Nothing compares to having new members get involved and going with the association. I ask that our seasoned members welcome the new crew and mentor President, them to success. This is a momentous time in El Paso Association our recovery as housing gets rolling again. We of Builders must remain vigilant to the upcoming elections and ensure that industry friendly candidates get elected, and if any of the candidates needs info in the importance of housing we can accommodate that.

It was a real treat to have had Congressman Francisco Canseco visit us. We have a true housing friend who is watching out for new construction. Thanks to Bobby Bowling IV for getting us that visit.

As I write this, several of us are preparing to attend the NAHB summer meetings in Washington D.C. Several issues will be discussed with our area Congressmen and U.S. Senators. Recent trends in the economy indicate that the recovery is fragile in many parts of the country. In discussions about changes to the tax code NAHB encourages Congress to pass comprehensive GSE reform Legislation that both protects the American tax payer while ensuring a safe and sound means of providing a reliable flow of housing credit. Also in discussion are about changes to the tax code, NAHB encourages Congress to take the right approach to foster economic growth and not harm job creation and recovery in the construction industry. This includes protecting the mortgage interest deduction (MID); the Low Income Housing Tax Credit (LIHTC), which supports rental housing: the capital gains exclusion: and the deduction of property taxes amongst others. Congress should oppose any changes to the tax code that would increase taxes on homeowners, renters or home builders. We are blessed to work and live in a great real estate market. Let’s continue to keep it that way!

Frank Arroyos

El Paso Disposal

772-7495

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Builders Outlook

Perspective

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Ray Adauto, Executive Vice President EPAB

The irresponsible action of several past high ranking school district superintendents casts a giant shadow on the city of El Paso. Having Dr. Lorenzo Garcia found guilty of crimes directly involving the El Paso Independent School District couldn’t come at a worse time. EPISD is the school district most associated with Fort Bliss and the growth of that post.

EPISD handles hundreds of millions of taxpayer dollars every year and is one of the largest if not the largest taxing entity in the community. The trust of the taxpayers, families and students of EPISD has been permanently and irreparably broken.

The talk from politicos and business leaders correctly punch at the loss of trust of not only the highest ranking employee of the district but the loss of trust with regard to the board of trustees and school district employees. No one can argue that the elected board has either been duped by the smartest man in the

School District corruption affects more than students

Housing a victim as well world or more than likely never felt like they would be held accountable for hiring and allowing so much theft to go undetected for so long.

These publically elected officials are the result of voter apathy or voter neglect.

There’s a lot of finger pointing going on but it’s kind of like what happens when you point a finger and see three other fingers pointing back at you.

The sad truth is that school board positions get elected by the smallest percentage of voters and even those voters tend not to really understand the role of a an elected school trustee.

The sad truth is also that while taxpayers, employees and more importantly the students and families who rely on the EPISD for educating their children are directly affected so are other things like housing. How you ask?

The El Paso ISD stretches from the Westside to the east, below the freeway and up north into northeast El Paso. The land mass that the EPISD

taxes from is massive and diverse.

When new developments are in the works many of those fall into the EPISD. With the reports of scandalous cheating in the classrooms, the indignity of administrators AND educators bumping students to avoid testing them and in the process denying them equal education success or failure causes home buyers to worry about their children and the schooling they will receive by living in the district. Buying a new home is impacted by the schools nearby and their status. No parent or guardian wants to send a child to underperforming, cheating, dirty or unsafe schools. New school buildings are nothing if the educational opportunity presented by the educators, administrators and staff inside the school and in the district is corrupt. In the case before us it appears that many levels of responsibility and trust were broken.

With that homes in that district may go unsold for longer periods of time than

homes in other districts. Hundreds of millions of dollars’ worth of new construction may sit as buyers contemplate whether or not to be in that district. Corruption in the district causes concern, and indecision affects sales. It’s tough enough given the current economy, now developers and builders have to worry about the school in their neighborhoods.

Shame on the board. Shame on the administrators. Shame on the teachers who sheepishly went along with the corruption. Shame on the voters for not taking the time or investigating the candidates for the board.

As home builders and suppliers, taxpayers, and parents in the district we hope that a complete cleansing of the district is done and that the other eight districts learn from this mess. Garcia is not alone in this corruption and it is incumbent on the district’s voters to ensure this doesn’t reappear.

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Builders Outlook

More than 700 Builders Call on Congress to Make Housing and Homeownership a National Priority

More than 700 home builders trekked to Capitol Hill on June 6, 2012, to call on Congress to make housing and homeownership a national priority and to take concrete steps to get housing back on track in order to create jobs and keep the economy moving forward.

“Though we are seeing some hopeful signs of recovery in many markets throughout the nation, our industry still

faces stiff headwinds,” xzsaid NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. Persistently tight lending standards for home builders and home buyers, uncertainty regarding the future of the housing finance system, ongoing threats to vital housing tax incentives, and overly burdensome regulations are hampering a housing recovery and

keeping countless home building firms from constructing viable projects and hiring new workers, he added.

In more than 250 individual meetings with their representatives and senators, builders called on their lawmakers to: Support legislation to restore the flow of credit for new housing production. NAHB is urging the House Financial Services Committee to consider H.R. 1755, the Home Construction Lending Regulatory Improvement Act. Sponsored by Reps.

Gary Miller (R-Calif.) and Brad Miller (D-N.C.), the measure currently has 96 co-sponsors and would remove barriers to lending while preserving the regulators’ ability to assure the safety and the soundness of the financial institutions they oversee. NAHB is seeking cosponsors for similar legislation in the Senate, S. 2078, the Home Building Lending Improvement Act, sponsored by Sens. Bob Menendez (D-N.J.) and Johnny Isakson (R-Ga.).

Pass comprehensive legislation to reform housing government sponsored enterprises Fannie Mae, Freddie Mac and the Federal Home Loan Banks that provides a federal backstop to ensure a reliable and adequate flow of affordable housing credit in all economic and financial conditions.

Preserve current housing tax incentives, including the mortgage interest deduction and Low Income Housing Tax Credit, as the debate on tax reform moves ahead.

5 Support legislation to make muchneeded improvements to the Environmental Protection Agency’s Lead: Repair, Renovation and Painting (LRRP) rule. Sponsored by Sen. James Inhofe (R-Okla.), the Lead Exposure Reduction Amendments Act of 2012 (S. 2148) would offer several reforms to EPA enforcement of the lead paint rule, including reinstating the opt-out provision to allow home owners without small children or pregnant women residing in them to decide whether to require LRRP compliance.

Cosponsor House and Senate bills that would reduce the overreach of federal power under the Clean Water Act. House bill H.R. 4965, the Preserve the Waters of the United States Act, and its identically named Senate companion measure (S. 2245), would prevent the EPA and U.S. Army Corps of Engineers from finalizing or implementing their draft guidance to expand the reach of the Clean Water Act to include virtually every ditch, pond and seasonal runoff ditch in the nation.

“In this pivotal election year, it is imperative to ensure that presidential and congressional candidates on both sides of the political aisle understand the importance of housing and homeownership,” said Rutenberg.

“Today, builders from across the land reiterated this message to their legislators and reminded them that there can be no economic recovery without a housing recovery.”

-NAHB

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Builders Outlook

Builders Stress Importance of Multifamily Housing Finance Programs

The National Association of Home Builders (NAHB) today told Congress that the Obama Administration’s fiscal 2013 budget proposal to increase multifamily mortgage insurance premiums (MIPs) would be counterproductive.

Testifying before the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity, Bob Nielsen, the immediate past chairman of NAHB and a multifamily home builder from Reno, Nev., said that the need to raise the MIPs in order to reduce defaults has not been demonstrated and that the U.S. Department of Housing and Urban Development has failed to provide an analysis on how the proposed higher MIPs would affect borrowers, lenders or renters who live in properties insured under the programs.

“The proposed increases will not provide a buffer against future FHA losses because there is no segregated fund and excess income is simply returned to the U.S. Treasury each year,” said Nielsen. “Increases will only add to property owners’ costs, thereby affecting rents and discouraging the production of rental housing.”

The proposed MIP increases would hurt market rate rental properties in the secondary markets where credit is limited, Nielsen added, because private capital currently is focusing lending activities in the strongest markets and for well-capitalized large developers.

On other issues of concern to the multifamily community, NAHB urged Congress to: • Oppose efforts to establish minimum capital ratios for the General Insurance and Special Risk Insurance (GI/SRI) Funds before an indepth analysis is done.

• Support efforts to fully fund renewals of Section 8 Project Based Rental Assistance contracts.

• Back HUD’s legislative efforts to expand the availability of financing for small multifamily rental properties and to provide a secondary market outlet for such loans.

Citing demographic factors, Nielsen said that FHA has an important role to play in serving the range of rental housing needs, and its mission must remain broad to ensure that access to credit is available in all geographic areas of the country and under all economic conditions.

During the next decade, NAHB estimates that the aging “echo boom” generation will result in demand for between 300,000 and 400,000 multifamily units per year. While the timing of this demand will depend on the pace of the economic recovery, the housing needs of these households will not be postponed indefinitely.

Last year’s 178,000 multifamily housing starts represented roughly half the units that will be needed to keep pace with this burgeoning demand.

“Production of multifamily housing will undoubtedly increase above the current low levels,” said Nielsen. “It is important that the financing mechanisms to support that production are available and that Congress ensures that the FHA multifamily mortgage insurance programs continue to meet the needs of low- and moderate-income renters.”

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Student Loan Debt Crisis Linked to Lower Home Values

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Builders Outlook

New analysis of government data by the National Association of Home Builders (NAHB) reveals a connection between rising student loan debt and the onset of the housing slump, and offers yet another example of how lower home values have hurt millions of middle class households and threatens the fragile economic

recovery.

“The rising student loan debt problem is another consequence of the housing downturn,” said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “As more and more parents face tighter budget restraints as a result of lower home values, this is forcing an increasing number of students to take out loans for tuition, essentially shifting some of the burden of paying for college from parents to students.”

The link between rising student loan debt and the start of the housing crisis comes on the heels of a recent report from the Federal Reserve showing that U.S. household wealth plunged nearly 40 percent from 2007 to 2010 as a result of declining home values.

“Together, these findings should serve as an urgent wake-up call for policymakers to do their part to ensure a full-fledged housing recovery moves forward to restore the balance sheets of tens of millions of home owning families, create jobs and spur economic growth,” said Rutenberg.

To get housing back on track and provide the foundation for a long-lasting economic recovery, Rutenberg called on leaders in Washington to provide access to mortgage credit for qualified borrowers; demonstrate their support for the

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mortgage interest deduction; support affordable downpayments for home buyers; enact reforms in appraisal practices and oversight to ensure that appraisals accurately reflect true market values; and establish a strong housing finance system that retains a federal backstop to ensure that standard 30-year fixed-rate loans and adjustable rate mortgages remain readily available for working class households.

“Young Americans need to have the ability to pay for college in order to prepare for the jobs of the future,” said Rutenberg. “Homeownership has historically generated a thriving middle class by creating wealth and helping families to cover higher education costs.

Hard-working American families and the economy will continue to struggle until we get housing back on track.”

Builder Confidence Up One Point Builder confidence in the market for newly built, single-family homes gained one point in June from a slightly revised level in the previous month to rest at 29 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. This is the highest level the index has attained since May of 2007.

“This month’s modest uptick in builder confidence comes on the heels of a fourpoint gain in May and is reflective of the continued, gradual improvement we are seeing in many individual housing markets as more buyers decide to take advantage of today’s low prices and interest rates,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “While the June HMI is in keeping with our forecast for gradually improving single-family home sales this year, recent economic reports that have shown some weakening in the pace of recovery likely factored into the marginal gain,” said NAHB Chief Economist David Crowe. “In addition, builders across the country continue to report that overly tight lending conditions and inaccurate appraisals are major obstacles to completing sales at this time.”

Derived from a monthly survey that NAHB has been conducting for 25 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

In June, the HMI component measuring current sales conditions rose two points to 32, which is its highest level since April of 2007. Meanwhile, the components measuring sales expectations in the next six months and traffic of prospective buyers held unchanged at 34 and 23, respectively.

Regionally, the HMI results were mixed in June, with two areas of the country posting gains and two posting declines.

The Midwest registered a five-point gain to 31 and the West registered a four-point gain to 33, while the Northeast and South each posted two-point declines, to 29 and 26, respectively.

Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at www.nahb.org/hmi.

More information on housing statistics is

also available at

Builders

utlook on the scene |

Congressman visits EPAB

General Meeting The June general meeting not only saw the largest number of attendees this year but also featured Colonel Brant Dayley, the new Garrison commander at Fort Bliss. Dayley replaces an old friend, Colonel Joseph Simonelli as the “mayor” of Fort Bliss. “I have to admit that I’m filling large shoes as the replacement for Colonel Joe, but I’ll do my best,” Dayley said. A native of El Paso with roots going back to the mid 1800’s, Colonel Dayley is right at home in El Paso.

“My great grandfather is the guy who put John Wesley Hardin in the grave at Concordia,” the Colonel told the audience.

Dayley stressed that Fort Bliss continues to see growth and in spite of the defense department cuts being mandated by the President Fort Bliss is the installation of the future for the DOD. “We are an everything everywhere post, one that has the land, air and support capabilities for every type of weapon in the arsenal, and the training to go with it,” he said.

In addition to meeting the new Colonel the association also welcomed many of the newest members. It was an important meeting for the association as it welcomed and networked through the hour and a half lunch meeting held at the El Paso Club downtown.

President Frank Arroyos had this to say: “Today was awesome for many different things not the least of which was seeing the diversity of businesses represented today and the direction the association is going.

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

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New Member Orientation

The EPAB held an orientation get together for the recent membership drive new members. The event, held at the office, brought the membership team captains in to welcome their recruits and present them with the incentive rewards from the drive.

"It was a great night to get to meet the new members and get our leadership together with them," said Mike Santamaria, drive co-chair.

New members were given a tour of the ins and outs of the association. A list of new membership drive companies are printed in this edition of the Outlook.

President Frank Arroyos along with the Executive team were on hand to answer qyestions. Co-captain Greg Bowling said "This has to be one of the best orientations we've ever had.

Glad to see these new members. "

View more photos on our facebook page: elpasobuildersassociation

10 Bipartisan Lead Paint Bill: Ease Regulatory Burdens without Compromising Safety Responding to concerns from the National Association of Home Builders (NAHB) and affiliated trade groups, Reps. John Sullivan (ROkla.) Tim Murphy (R-Pa.) and a bipartisan list of original co-sponsors today introduced legislation to make much-needed improvements to the Environmental Protection Agency’s Lead: Repair, Renovation and Painting (LRRP) rule.

H.R. 5911, the Lead Exposure Reduction Amendments Act of 2012, is similar to legislation (S. 2148) unveiled earlier this year in the Senate by Sen. James Inhofe (R-Okla.) and five other cosponsors that would help home owners and remodelers to better comply with the costly work practices and record keeping requirements of the rule without compromising safety standards.

“We commend Reps. Sullivan and Murphy for championing this bill that will not only make the EPA’s lead paint rule more workable, but continue to protect pregnant women and small children,” said 2012 NAHB Remodelers Chairman George “Geep” Moore Jr., GMB, CAPS, GMR, a remodeler from Elm Grove, La. “This legislation will provide families greater flexibility to decide on their own remodeling activities and give them the peace of mind of knowing sound safeguards remain in place to protect against lead hazards.”

Additional co-sponsors include Reps.

Leonard Boswell (D-Iowa), Aaron Schock (RIll.), Billy Long (R-Mo.), Kristi Noem (R-S.D.), Frank Lucas (R-Okla.), Dan Boren (D-Okla.), Tom Cole (R-Okla.) and James Lankford (ROkla.)

The LRRP rule, which took effect on April 22, 2010, requires that remodelers and contractors working in homes built before 1978 be trained and certified by the EPA on leadsafe work practices before they can legally work in those homes.

Three months later, EPA removed the “optout” provision in the LRRP that allowed remodelers working in a home built prior to 1978 to forego more expensive work practices according to the owner’s wish if no children under the age of six or pregnant women resided there.

By removing the opt-out provision, EPA more than doubled the number of homes subject to the LRRP. The agency has estimated this will add more than $336 million per year in compliance costs to the remodeling community, and more importantly, without making young children any safer.

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

By failing to perform a study of lead exposure rates from work on commercial and public buildings, the agency has also exceeded its congressional mandate by starting the process of extending the LRRP to those structures through an Advanced Notice of Proposed Rulemaking.

Both the House and Senate bills would address these concerns and offer other reforms for EPA enforcement of the lead paint rule. Specifically, the legislation would: • Reinstate the opt-out provision to allow home owners without small children or pregnant women residing in them – not the government -- to decide whether to require LRRP compliance.

• Suspend the LRRP if EPA does not approve a commercially available test kit that meets the regulation’s requirements.

• Allow remodelers to reduce fines if they correct paperwork errors found during an inspection.

• Eliminate the “hands on” recertification training requirements that force some remodelers to travel long distances to training facilities to receive proper certification.

• Prohibit EPA from expanding the LRRP to commercial and public buildings until at least one year after the agency conducts a study demonstrating the need for such an action.

• Clarify the definition of “abatement” to specifically exclude remodeling and renovation activities.

• Provide an exemption to the regulation for emergency renovations.

NAHB is urging its members to contact their representatives and senators and urge them to cosponsor the respective lead paint bills pending in the House and Senate.

For additional information about lead paint rule enforcement and compliance, visit www.nahb.org/leadpaint.

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Builders Outlook

Expert Advice

Back to Energy Star, Energy Efficiency and Solar Energy

Javier Ruiz Border Solar/SWHER

Time flies, its been almost 1 year since I last wrote about energy efficiency, green building or Solar Energy, but things have been extremely busy here at the office, and between managing Border Solar, SENERCON and everything in between you loose track of time to start writing, but now I have committed myself to start writing again, and keep our audience with new and exciting content. This last year has been challenging and excited between growing the business and the family, well... you get the picture.

Now lets get to the content from the title of this article; First of all, Energy Efficiency, the most important and

significant change is the full implementation of Energy Star Version 3, in the last few months I have seen a huge drop in the numbers of Energy Star Homes in El Paso, and mainly because of the extra work and upgrades needed to comply with the Version 3 requirements. I have to say that the upgrades are not expensive nor difficult but it does require the full commitment of Builders, staff, superintendents and some of the subcontractors. It’s truly an integrated effort towards improving the energy efficiency, integrity, and quality of the homes.

In the past year at SENERCON we did a number of introduction trainings for builders interested in doing the Version 3 program, acceptance was low as expected from the beginning, but this is NOW a GREAT OPPORTUNITY for builders to differentiate themselves from non Energy Star committed builders.

The main goal for the new Energy Star Version 3 is to introduce more quality control on HVAC subcontractors; more detailed building envelope enclosure and alignment between the insulation and the air

barriers of the homes. One more important upgrade of the Version 3 program is the home size adjustment factor, which means that the bigger the home, the higher the energy efficiency threshold will be, this is to offset the additional energy that larger homes use with reference to smaller homes with same number of bedrooms.

As of this writing, there are only 20 active Energy Star builders in El Paso, and only 2 which are 100% committed Version 3 builders, Winton/Flair Homes and Palo Verde Homes, for the others you can find out who they are by going to the Energy Star website and look for Energy Star builders. This is a very significant drop since 3 years ago, when El Paso had over 75 active Energy Star builders.

Builders do have OPTIONS: We know Energy Star V3 has it challenges, so what other alternatives are there to keep promoting energy efficiency and 3rd party verification to show costumers the energy performance of Homes, the answer is the HERS Index, which stands for Home Energy Rating Systems, this is being implemented by most National Home builders as a way to differentiate

their homes and show a standardized tools to compare Energy Efficiency among homes, and acts as a Miles Per Gallon (MPG) for homes. Traditionally the HERS Index goes from 0 to 100 or higher, the lower the number the more energy efficient the home is, once a home reached 0 (ZERO) it means its a Zero Energy Home, which means that the home produces as much energy as it consumes, which is the ultimate goal for Energy Sustainability, which in our region is possible by using Solar energy.

As always you can learn more about Energy Star or HERS Index by calling our office or doing a quick websearch.

If you have questions you can send me an email directly at jruiz@bordersolar.com, or you can send you suggestions regarding any topic related to Energy efficiency, green building or Solar Energy to the same email.

Until next time, think about the impact that the decisions you make today will have in our communities in 10 or 15 years, be conscious, be proactive… it’s our responsibility for future generations.

Give your customers the ‘option of the sun’ Now more than ever, El Paso home buyers are planning for the future.

Border Solar can help you offer your customers solar power as a sensible alternative.

Crossing to Clean Energy

7365 Remcon Circle El Paso, TX 79912 (915) 613•4168

www.bordersolar.com

The future starts today. follow us on twitter and facebook: BorderSolar

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utlook on the scene |

M3 Federal Contracting gives insight into government contracts When Patrick Malyszek decided to come to El Paso and do a seminar on government contracts it wasn’t because he just enjoys a day long plane trip. No, it was simply because he saw a need to be filled by local companies searching for ways to diversify their businesses and search for an opportunity to bid on government contracts. Malyszek, who is an attorney by trade, comes from a family who practice in the field of government contracts. His father was a JAG officer, inside the military legal system and shaping the careers of his family. Mr. Malyszek taught Patrick the values and honor of helping people succeed in the complicated world of government contracting.

Patrick tells his audience that many people would like the idea of getting a contract from the government yet they don’t know how or what it takes. That’s why Patrick started M3 Federal Contracting Practice LLC, and why it now represents clients around the world doing business with governments around the globe.

The daylong seminar took the audience through the processes necessary to evaluate whether or not a company should be engaged in government contracting.

Mr. Malyszek is quick to point out that some companies are better off not going that route. “You would be surprised how many people want to do business with governments, but they shouldn’t”, he surprised the attendees. “Each business has to evaluate whether it has the willingness, temperament, and funding to go this route,” he

continued.

History tells us of companies that went into the government world of contracts and came out the other end broken, in debt, and in some cases in jail for underperforming or fraud. “It isn’t unusual for a trusting company to invest large sums on the hope of a contract, only to find out that the government wouldn’t use them or that issues of performance allow government to close them down,” he continued.

The local seminar idea sprung from builder developer Walter Lujan of DAWCO Home Builders. “I have experienced the good and bad of trying to get a contract, and the difficulties that can be put in front of you if you don’t have good advice,” Lujan told the Outlook. “I found Patrick to be extremely knowledgeable and effective, he knows this business like no one else I’ve found,” he continued.

Malyszek is forming a local specialized business group with select businesses who want to take the government path seriously. “We will be looking for a select group in El Paso who want to see local businesses earn contracts instead of letting them go to companies outside the area,” he said. For information on getting involved in the group contact Patrick Malyszek, M3 Federal Contract Practice Group, LLC. 126 West Main Street, 2nd Floor, Endicott, NY 13760, (607) 754-8100, Fax: (607) 754-8232 Email: pmalyszek@m3federal.com, www.m3federal.com

2012/6

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Builders Outlook

EL PASo

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www.elpasobuilders.com www.epbuilders.org

BUILDERS Membership News years

B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 19 4 6

WELCOME NEW MEMBERS | AC Refrigeration Affordable Windows Agustin Sanchez Albrite Electric Co., Inc. Alfonso Maese Alianza Plumbing American West Door, Inc. Americh Andres Morales Grading Antonio Martinez ARTchitecture Bachmann & Lutki Real Estate Barnett & Bennett Construction Benito Castro Blanco Tile Bock & Associates B's Tile Expressions C Alvarado C.D. Lee/Britton Insurance & Bonding Cabinet Ideas Cabinet Masters Caesar Gonzalez Carretes Plumbing, Inc. Chino's Construction ComCorp of El Paso Company Name

RENEWALS |

Cunningham Distirbuting D. Chevalier Electric Davalos Inc. Demcon Disposal Management, LLC Diaz Construction Diaz Services E de M Eastside Carpet & Flooring El Paso Star Ready Mix Energreen Energy Star Raters EP Templine ESS Environmental & Safety Solutions Everest Homes First American Bank Gabriel Higareda Garage Doors and More Hernandez Construction High Tech Electric Hilda's Janitorial Home Warranty of America HP Construction Hub International IDS Interior Design Solutions Ivans Pumping JA Heating & Cooling

A & E Consultants

UPCOMING EVENTS JULY 11 ASSOCIATES MEETING 3:30 El Paso Association of Builders Office

AUGUST 8 BOARD MEETING 11:00 GENERAL MEETING 12:00 EL PASO CLUB CHASE BANK BLDG. (DOWNTOWN)

James Herren Javier Jaramillo Plumbing Johnny's General Construction Jorge Martinez Jose Hernandez Jurado Granite KB Realty Laser Tech, Inc. LEC Engineering, Inc. Leo's Granite Natural Stone LMJ Construction Co., LLC Longhorn Lighting Loya's Shutters Luis Lopez Marquez and Sons Martha Tapia Martin De Leon Carpet Service Martinez Iron Works Millenium Homes Northeast Printing Pedro Ramirez Pfister PH Construction Pointman Enterprises, LLC Polar Heating & Cooling Q-Martin

First National Bank

SODA SPONSOR Thanks to our JUNE SODA SPONSOR: Edwards Homes

Quality Granite R C Drywall Ramirez Heating & Cooling Richman Group Affordable Housing Corp.

Rio Bravo Title Co. Salvador Gureca Sergio Guzman Plastering Servaz Plumbing SKI Heating and Air Solar Community Southwest Garage Door Stewart Solutions, LLC Suarez Plumbing Texas Title Company The Bicycle Company Tile Service Tom Growney Equipment Vega Plumbing VJE Plumbing Westbrass Company XRG Consulting YEC LLC

Majestic Realtors

Wagner Equipment

CONGRATS CONDOLENCES To Bob Paschich On the birth of your fist Grandson Leo Marra born 6-20-12 8 lbs. 9 oz. 22” long

To Ted Escobedo and his family for their loss of Ernie Escobedo Sr.

ANNOUCEMENTS Installation to move back to El Paso Country Club Preliminary plans in the works will return the Association installation dinner to the El Paso Country Club on Thursday, December 6, 2012.

Edmundo Dena, President of Accent Homes will be installed along with the 2013 Board of Directors. Advertising opportunities will be announced in the coming weeks. For information on those contact Margaret at the EPAB office, 778-5387.

EPAB closes first week of July, office hours change.

The El Paso Association of Builders will be closed July 2-6 as staff takes vacation during a traditionally slow month. The office will reopen on Monday, July 9.

New summer hours are also in store for the association office. Monday through Thursday we will be open 85:30, Friday 8-noon. It is expected that these hours will reduce our energy bills during July and August.

Meetings and events will still take place during hours posted for such.

11395 James Watt, Suite A-11 79936 915-633-8002

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2012/6

Associates Council

Sam Shallenberger Western Wholesale Supply

Hi to all Associate Members, as your Associates Chair, I would like to welcome all 98 new members aboard and invite you to our associates meeting to be held July 11th at the association 6046 Surety Dr. We will start the meeting at 3:30 in the afternoon and we will have some interesting topics for discussion. We have a fall golf tournament , bowling and more than anything we want to hear what you have to say. With the new group of 98 and the old timers like me and some of our other members it should make for some interesting conversation.

I would like to thank Mike Santamaria and Gregg Bowling for heading up the membership drive that brought all 98 of you new members in.

I look forward to seeing EVERYONE at the meeting.

Jaime’s Courier Service,Inc. 915-549-4533 or 915-478-2404 Bonded, insured for your peace of mind.

Showroom: 2131 Missouri 915 • 533 • 6045

fax • 533• 6096

Thomas R. Brown, Owner

Builders

utlook

EL PASO

ASSOCIATION

years

OF

BUILDERS

B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 19 4 6

www.elpasobuilders.com www.epbuilders.org 6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038 ■ execuTive oFFicerS Frank Arroyos - President Cisco Homes edmundo Dena - vice President Accent Homes Frank Torres - Secretary/Treasurer GMF Custom Homes Sam Shallenberger - Associates council Western Wholesale Supply Greg Bowling - immediate Past President Tropicana Homes ray Adauto - executive vice President El Paso Association of Builders

■ TAB STATe DirecTorS Doug Borrett, Karam Co., Life Director Randy Bowling, Tropicana Homes ■ NATioNAL DirecTorS Bobby Bowling IV. Demetrio Jimenez

NATioNAL ASSociATioN oF Home BuiLDerS (800) 368-5242 TexAS ASSociATioN oF

■ couNciL/commiTTee cHAirS Affordable Builders council Bobby Bowling IV Associates council Sam Shallenberger Build PAc Randy Bowling Desert Green Building council Javier Ruiz industry Promotions Greg Bowling Land use council Vacant Young Designer Award John Chaney remodelers council Rudy Guel membership Drive Mike Santamaria Finance committee Kathy Carrillo education committee Frank Spencer ■ ADviSorY To THe BoArD J. Crawford Kerr, Attorney, Firth, Johnson & Martinez

BuiLDerS (800)252-3625

2011 Builder member of The Year Greg Bowling Tropicana Homes 20110 Pat cox Award Kathy Parry Hunt Communities 2011 Associate of The Year Sam Shallenberger Western Wholesale Supply John Schatzman Award Bob Bowling III Tropicana Homes ePAB Special Award Rudy Guel Guel Construction

Honorary Life members Brad Roe Cliff Anthes Wayne Grinnell Chester Lovelady Don Henderson Anna Gil

■ BoArD oF DirecTorS Joe Bernal, Joe Bernal Insurance Doug Borrett, Karam Co. Kathy Carrillo, Pioneer Bank John Chaney, Passage Supply Sergio Cuartas, BIC Homes Ted Escobedo,Snappy Publishing Art Garcia, El Paso Door Juanita Garcia, ICON Custom Home Builders,LLC

Past Presidents committed to Serve Kelly Sorenson Mark Dyer Mike Santamaria John Cullers Randy Bowling Doug Schwartz Robert Baeza

Bobby Bowling, IV Rudy Guel Anna Gil Bradley Roe Bob Bowling, III E. H. Baeza

Samira Gonzalez, Edwards Homes Lorraine Huit, Cardel Design Group Walter Lujan, Dawco Home Builders Sal Masoud, Del Rio Engineering Bruce Meyer, JDW Insurance Edgar Montiel, Palo Verde Homes Kathy Parry, Hunt Communities Javier Ruiz, Senercon & Border Solar Frank Spencer, Aztec Contractors Henry Tinajero, Bank of the West Linda Troncoso, TRE & Associates Ken Wade, El Paso Building Materials Adam Winkler, MTI Ready Mix Paul Zacour, Zacour & Associates

ePAB mission Statement: The El Paso Association of Builders is a federated professional organization representing the home building industry, committed to enhancing the quality of life in our community by providing affordable homes of excellence and value.

The El Paso Association of Builders is a 501C(6) trade organization. © 2012 Builder’s Outlook is published and distributed for the El Paso Association of Builders

by Snappy Publishing 240 Thunderbird • Suite C El Paso • Texas • 79912 915-820-2800