Builders Outlook 7/11 by Ted Escobedo

www.elpasobuilders.com

Builders Outlook Issue 7 2011

Building El Paso’s tomorrow today

82nd Legislature ends, Texas Builders prepare for 83rd The 82nd Texas Legislature ended after one special session to resolve some lingering budgetary and politically motivated issues. The TAB lobby team had a dynamic session as issues surrounding housing, county authority, regulatory bills and others took up hundreds of hours of work. While the lobby team is our professionals at the Capitol the EPAB would like to extend special thanks to our members who took personal time out to travel to Austin to testify or help with supporting or defeating certain pieces of legislation. Rally Day in Austin was a part of the success. The monetary value of the work done by EPAB members and the lobby team resulted in hundreds of millions of dollars in savings to the industry. With the budget woes expected over the next decade the TAB leadership has warned that housing will continue to be a target for funds, meaning that we can expect more bills in the coming years. This review is from the TAB “Tabloid” issue July 2011 and gives you insight into how complex the issues were. Additional budget information is inside this special issue of Outlook.

82nd Legislature Here is a review of the legislature and some highlights:

SPECIAL SESSION – Most of the bills in the governor’s call for the special session passed. The exceptions were the anti-sanctuary cities legislation and the Transportation Safety Administration intrusive touching bill. Below is the final outcome of issues in the governor’s call. Expanded bill summaries are in the issue categories below. Fiscal Matters – The governor’s call said, “Legislation relating to fiscal matters necessary for the implementation of HB 1 passed by the 82nd Legislature, including measures that will allow school districts to operate more efficiently.” SB 1, the fiscal matters bill; SB 2, the supplemental appropriations bill; SB 6, establishing the instructional materials fund; SB 8, giving school districts flexibility on personnel and other matters; and HB 79, the fiscal matters bill streamlining operations of the judiciary, all passed.

Healthcare Cost Containment – The governor’s call said, “Legislation relating to healthcare cost containment, access to services through managed care, and the creation of economic and structural incentives to improve the quality of Medicaid services.” SB 7, which makes several changes that improve efficiencies in health and human services delivery, passed. Congressional Redistricting – The governor’s call said, “Legislation relating to congressional redistricting.” SB 4, the congressional redistricting bill, passed. Texas Windstorm Insurance Association – The governor’s call said, “Legislation relating to the operation of the Texas Windstorm Insurance Association.” HB 3, which makes changes to the Texas Windstorm Insurance Association, passed. Abolish Sanctuary Cities – The governor’s call said, “Legislation relating to the abolishment of sanctuary cities, the use of the federal Secure Communities Program by law enforcement agencies, and the issuance of driver’s licenses and personal identification certificates.” SB 9 by Tommy Williams (R-The Woodlands), the sanctuary cities bill, passed the Senate but died in the House State Affairs Committee. HB 9 by Burt Solomons (R-Carrollton), the House version of the bill, also died in the House State Affairs Committee. There was a last minute effort to add antisanctuary cities language into SB 1, but that was not accomplished. Intrusive Touching – The governor’s call said, “Legislation relating to the prosecution and punishment for the

offense of official oppression on those seeking access to public buildings and transportation.” SB 29 by Dan Patrick (RHouston) and David Simpson (RLongview), which classifies intrusive touching used in searching persons seeking access to public buildings and transportation as official oppression, was brought up on the House floor on the last day of the special session but did not get the four-fifths vote required to suspend the constitutional rule requiring bills to be read on three several days. Therefore, it did not pass. GOVERNOR – At the conclusion of the special session, Governor Rick Perry said, “I’m proud of Lt. Governor David Dewhurst, Speaker Joe Straus and lawmakers’ principled leadership to pass a balanced budget that doesn’t raise taxes and preserves billions unspent in our Rainy Day Fund, leaving our state on firm fiscal footing for the future. The decisions made were difficult, but lawmakers should take pride in the fact that they did what families all across Texas are doing: living within their means. I’m also proud we passed legislation that effectively reforms the Texas Windstorm Insurance Association, addresses necessary health care efficiencies, and completes congressional redistricting. Although I am disappointed lawmakers did not finalize legislation that would have banned sanctuary cities, I commend the Legislature’s work to pass measures that further strengthen our legal system through loser pays lawsuit reform, uphold the integrity of the ballot box by requiring voters to present photo ID at polling

places, protect unborn life by requiring an ultrasound before an abortion, strengthen private property rights, and increase penalties for individuals who participate in human trafficking. And although the airport pat-down bill did not pass, it did initiate a public discussion and some changes in airport security procedures. Ultimately the measures we have worked together to complete this session will keep Texas a model of good, efficient and limited governance that other states and the federal government should follow.” SENATE – Last Monday, the Senate passed HB 79 by Representative Tryon Lewis (R-Odessa) and Senator Robert Duncan (R-Lubbock), the fiscal matters bill streamlining operations of the judiciary. The Senate also adopted the conference committee report on SB 7 by Senator Jane Nelson (R-Flower Mound) and Representative John Zerwas (R-Fulshear), which makes several changes that improve efficiencies in health and human services delivery.

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Builders Outlook

82nd Legislature The Senate also adopted the conference committee reports on both of the education reform bills: SB 6 by Senator Florence Shapiro (R-Plano) and Representative Rob Eissler (R-The Woodlands), which combines the textbook fund and the technology allotment fund into a new instructional materials fund; and SB 8 by Senator Florence Shapiro (R-Plano) and Representative Rob Eissler (R-The Woodlands), which gives school districts flexibility on personnel and other matters; and they adopted the report on SB 2 by Senator Steve Ogden (R-Bryan) and Representative Jim Pitts (R-Waxahachie), a supplemental appropriations bill. Senator Wendy Davis (D-Fort Worth) and nine other Democrats voted against adoption of the conference committee report on SB 2 and Davis and eleven other Democrats voted against adoption of the conference committee report on SB 8. After recessing into a caucus for two hours, the Senate came back to pass SB 29 by Senator Dan Patrick (R-Houston) and Representative David Simpson (RLongview), which classifies intrusive touching used in searching persons seeking access to public buildings and transportation as official oppression. Last Tuesday, the Senate adopted the conference committee report on SB 1 by Senator Robert Duncan (R-Lubbock) and Representative Jim Pitts (R-Waxahachie), the fiscal matters bill. Senator Leticia Van de Putte (D-San Antonio) was one of nine Democrats to vote against the conference committee report on SB 1. The Senate also adopted the conference committee report on HB 3 by Representative John Smithee (R-Amarillo) and Senator John Carona (R-Dallas), which makes changes to the Texas Windstorm Insurance Association. Upon Senate adoption of the conference committee report on HB 3, Lt. Governor David Dewhurst said, “When hurricanes strike, Texans want to know that their homes and businesses are protected. Passing the TWIA bill – on the eve of hurricane season – will help protect our coastal policyholders, while preventing lawsuit abuse, promoting greater oversight and transparency and improving the overall solvency of the fund.”

si·ne die: adv : without any future date being designated (as for resumption) : indefinitely ‘the meeting adjourned sine die’

The Senate adjourned sine die around 3:30 on Tuesday afternoon. Before leaving, Senators re-elected Senator Mike Jackson (R-LaPorte) as President Pro Tempore of

the Texas Senate. And, prior to adjournment, Lt. Governor David Dewhurst said, “I want to congratulate all of our Members, Speaker Straus, and Governor Perry on one of the most conservative sessions in Texas history. I have enjoyed working together to make Texas an even better place to live, work and raise a family. When you consider the challenges we faced – particularly with the budget – it’s remarkable that we were able to get so much done. We have proven once again there is no limit to what we can accomplish when we put Texans first. Accomplishments of the 82nd Session of the Texas Legislature include: • Balancing the budget without raising taxes • Reducing current state spending by almost $15 billion • Saving nearly $6.5 billion in our Rainy Day Fund • Increasing state funding for public schools by almost $4 billion • Passing a historic ‘Loser Pays’ tort reform law to reduce frivolous lawsuits • Passing landmark, free market initiatives to improve health care and reduce costs • Enacting a strong Voter ID law to protect the integrity of our elections • Providing pregnant women the opportunity to see a sonogram of their unborn child • Protecting the Second Amendment rights of gun owners • Redrawing Texas House, Senate and Congressional Districts for the next decade • Creating an Instructional Materials Allotment for school districts • Providing flexibility for school districts with their management and operations • Reforming Texas Windstorm Insurance Association and limiting lawsuit abuse and protecting coastal property owners" HOUSE – Last Monday, the House adopted the conference committee reports on SB 2 by Senator Steve Ogden (RBryan) and Representative Jim Pitts (RWaxahachie), a supplemental appropriations bill; SB 6 by Senator Florence Shapiro (R-Plano) and Representative Rob Eissler (R-The Woodlands), which combines the textbook fund and the technology allotment fund into a new instructional materials fund; SB 7 by Senator Jane Nelson (R-Flower Mound) and Representative John Zerwas (R-Fulshear), which makes several changes that improve efficiencies in health and human services delivery; and SB 8 by Senator Florence Shapiro (R-Plano) and Representative Rob Eissler (R-The Woodlands), which gives school districts flexibility on personnel and other matters. All but two House Democrats voted against the conference committee report on SB 2 and all of the House Democrats voted against the conference committee report on SB 8.

The House debated and gave preliminary approval to HB 41 by David Simpson (RLongview), which would classify intrusive touching used in searching persons seeking access to public buildings and transportation as official oppression. On Tuesday, May 29, it looked like the special session was going to blow up when the House took up the conference committee report on SB 1 by Senator Robert Duncan (R-Lubbock) and Representative Jim Pitts (R-Waxahachie), the fiscal matters bill – the special session’s most important piece of legislation. The Senate had already adjourned sine die. The motion to adopt the conference committee report initially failed by a vote of 64 to 79 with 32 of the House Republicans voting against it, and four Republicans were absent. The Republican Caucus retreated to the Agriculture Museum to try to salvage the bill. When they returned, Representative Phil King (R-Weatherford) made a motion to reconsider the vote by which the conference committee report on SB 1 failed, and it was finally passed by a vote of 80 to 57 (16 Republicans switched to “yes”). Also on Tuesday, the House scrambled to figure out a way to pass the TSA intrusive touching bill after the Senate had vacated the building and was not available to act on any measures the House sent over to them. The House version, HB 41, was on the House calendar for third reading. The Senate had passed SB 29 before adjourning, so it was quickly referred to the House Criminal Jurisprudence Committee. The Chairman, Representative Pete Gallego (D-Alpine) asked the House to suspend the rules in order for his committee to have a formal meeting to consider SB 29 and pass it out so it could be substituted for the House bill on Wednesday. The House also passed HCR 5 by Representative Linda HarperBrown (R-Irving) urging Congress to take appropriate action to ensure acceptable treatment of the public by personnel of the Transportation Safety Administration. Last Wednesday, the House concurred in Senate amendments to HB 79 by Representative Tryon Lewis (R-Odessa) and Senator Robert Duncan (R-Lubbock), the fiscal matters bill streamlining operations of the judiciary. The House also had almost two hours of debate, parliamentary procedures, and an emotional personal privilege speech in regard to SB 29 by Dan Patrick (RHouston) and David Simpson (RLongview), the intrusive touching bill. First, the House reconsidered the vote by which HB 41, the House version, passed to third reading to get it back to second reading. Then, SB 29 was substituted for HB 41. The House debated and passed SB 29 to third reading by a vote of 106 to 27. Then, the motion to suspend the constitutional rule requiring bills to be read on three several days requiring a fourfifths vote failed 96 to 26, with 26 absent. It fell 24 votes short. Representative Simpson followed that with a personal privilege speech lamenting the bill’s failure and promising to keep up the fight. Representative Garnet Coleman (DHouston) led the House opposition to SB 29. He characterized the legislation as “designed to criminalize the pat down procedures that TSA agents use to ensure the safety of air passengers.”

Representative Fred Brown (R-College Station) said a tearful farewell to his House colleagues and announced that he will be resigning after 12 years in the House and moving to Salado to take a new job in Temple. Representative Warren Chisum (R-Pampa) also said goodbye to his fellow House members but promised to see them on the campaign trail during his race for the Railroad Commission. The House adjourned sine die around 12:30 on Wednesday. Prior to adjourning, Speaker Joe Straus commended House members for 170 days of hard work and declared the conclusion of the two sessions to be very successful and productive, though difficult legislative sessions. He thanked the members for working hard in a responsible and responsive way, representing the interests of every Texan.

The Speaker listed important accomplishments from the 82nd Session: • “Balanced 2012-13 biennial state budget that uses no new taxes, is fiscally responsible and lives within our means. • Provided $1.6 billion more dollars directly to our state’s public schools, a 5.6% increase in state funding. • Reduced All Funds spending by over $15 billion from the 2010-11 budget. • Passed all four redistricting maps required this year. • Promoted accountability and transparency in state government and in higher education and passed major sunset legislation including needed changes to the Texas Youth Commission. • Reformed and updated the Texas Windstorm Insurance Association to protect homeowners along the Texas Coast. • Protected the voting rights of military personnel who serve our country in the armed forces. • Passed Governor’s emergency items including private property protection, sonogram legislation, tort reform that further curbs lawsuit abuse, and Voter ID legislation that protects the integrity of the ballot.”

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Builders Outlook

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

We are in the middle of the summer months and time is flying by. Some things that I'd like to point out about where we stand today I think are in order. Our Association continues to work hard to keep you in business. This is not just the builders that I'm talking about, because as you know if your business depends on new home construction or remodeling then you are affected as well. Locally the City of El Paso held elections for four city representative seats. The Build PAC interviewed and met with candidates to try

to find those who would have an open door for us, consult with us and make every effort to work with us. The results are gratifying in that we feel that returning incumbents Ann Morgan Lilly and Eddie Holguin will continue to bring some reason to council, while newcomers Cortney Nilland and Dr. Mike Noe will take a fresh look at our issues. The new dynamics of the council should allow us to be included in discussion prior to actions. The last couple of months have seen the council develop some very restrictive ordinances and implementation of their version of smart code development. In addition we continue to work to reduce the restrictive bond placed on contractors by the city. At the state level our TAB lobby team has done really good work keeping the anti builder forces from making new laws that would restrict home building. Overall the work we did at the state kept fire sprinklers off the agenda; kept new taxing from

taking off; and overall kept Texas a builder friendly state. In all we feel that the savings from new rules not being made into law saved builders millions of dollars and kept consumers safe. Nationally we continue to work hard to keep the mortgage interest deduction in place. The federal government is looking for ways to pay back all those loans to wall street at the expense of the home buying public and the home builders. If this legislation goes through it could signal the absolute last nail in the coffin for many builders across the country. The latest economic numbers confirm that without home builders and remodelors this recession will not end. The struggle will continue this year as NAHB takes that fight to the hill for us. Locally we have had some internal changes as well. As you may recall Del Huitt had come on board during the transition late last year as Vice President. He did a great job for us and announced

that he was going into a different business. The bylaws made the next step easy for us as Frank Arroyos steps into the VP slot for the remainder of the year and Edmundo Dena from Accent Homes joins us as Secretary Treasurer. In December Frank will ascend to President, Mundo to VP and another builder member will be asked to get on the ladder. I will move to Past President, something i look forward to. Membership is critical to our success as an association, and I want to thank all of you who are members in good standing. Our job is to bring your voices together for a common good, to keep the new home building business going in El Paso. Like other groups there will be those who step up and get involved and others who just don't get it. I'm asking you to keep growing the association by inviting others to join, get involved, and have a good time doing so. The EPAB is effective and is moving forward.

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Builders Outlook

EPAB on track for achieving 2011 goals an beyond

Perspective Ray Adauto, Executive Vice President EPAB

In the beginning of 2011 the Executive Team put together a strategic plan and in doing so tried to lay out the grid for the upcoming year. Here are some things that we targeted and where we are at today. • Retain membership. As of today we have lost year to date down about 15-20% due to many factors. Our bylaws say that a membership is suspended if there is a 90 day account outstanding. We were carrying too many beyond 90 days, but through collections efforts we continue to make headway against our aging report. We had to place a lot of bad debt as uncollectable but the efforts for collection continue to pay off. • Hold a Parade of Homes. A valiant attempt to hold one in late October of this year was cancelled because we were looking at delays into the holiday season. Instead we will go forward with a Treasure Tour of Homes, showcasing model homes, spec homes and vacant lots. We are pushing for a late August early September date. • Effective change in the city council. With the varied group of candidates that jumped into the election the hardest thing the Build PAC had to do was ensure that business friendly candidates won. Four

seats were contested and the Build PAC’s contributions were cautiously optimistic. We feel like we were able to join other businesses in the hunt for the right city council mix and as of today we feel good about the winners. • Open dialogue with city hall. Our plan this year was to hold a local Rally Day at City Hall. That is happening in July, with the caveat that budget hearings may push the dates into August. Either way we are on target to accomplish this goal • Reduce the $50,000 permit bond requirement. With more and more regulatory control of housing in El Paso this bond requirement has done two things: lowered the number of contractors, roofers, etc. actually getting a permit registration; and secondly it has created a new business of renting out permits. While difficult to prove the latter all we can say is this: how is it that we went from nearly 2,800 registered contractors in El Paso to only 400somethig. Did they just go away, a “rapture” event of the contractors? No they didn’t. They are now underground and someday all of this will have a negative impact on consumers and the insurance industry. Just saying. • Get AD & C financing at the local level. The ineptness of Congress to address the housing finance crisis is going to critical mass. Washington doesn’t seem to understand that as housing goes, so goes the country. Our association, along with the thousands across the country has urged Congress to

address housing issues in a proactive manner. We must defeat the attempt to kill mortgage interest deductions. Our local banks, credit unions, and mortgage companies have joined in the fight. • Stabilize the leadership. Del Huit stepped in as Vice President at a critical time, as did Frank Arroyos. Now Edmundo Dena joins Frank and President Greg Bowling on the executive board. Del helped stabilize the executive and now we have in place leadership for the next three-five years. • Work on the 2009 IRC and work on the proposed “smart Growth initiative”. Our volunteer team took more than four months of hard work with city officials to make the 2009 IRC work in El Paso. The new codes were implemented with those

recommendations included. Untold savings to local contractors. Secondly the EPAB was able to demonstrate the harm in the recommended set back requirements sought by the City. It would have meant that all current floor plans would have become obsolete. Estimated savings in the millions of dollars to local builders. The El Paso Association is half way through the year and more changes and challenges are coming. We don’t act on a single issue on behalf of a single member, but rather we bring a collective voice to the forefront of issues facing the industry. Our second half will be exciting to be involved in. We stand ready to work hard to earn your trust and membership.

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Builders Outlook

Guest Perspective

Chente Quintanilla State Representative The 82nd Regular Session of the Texas Legislature is over and now the special session is winding down very quickly. For builders, there were not a lot of issues that come to my mind that warranted comment from your lobby in Austin. We did work a bit with the state association on Representative Marquez's bill relating to building codes in the unincorporated areas of counties. Other than that bill, it seemed to be a quiet session for your profession as far as regulation was concerned. Both the regular and special sessions will have consequences that are adverse to your profession in other ways. Like all businesses, yours depends on consumers who are not apprehensive of spending. So many actions by the legislature will dampen the enthusiasm of consumers. No one can argue against the fact that our economy was in bad shape during the past two years. Many have said that the leadership failed to address the slow

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Actions by the legislature will dampen the enthusiasm of consumers economy in 2009 which created an even bigger problem this session. In addition to that failure, some state leaders have complained about the reluctance of the legislature to raise revenues during this session. The point being that cutting spending was not the only alternative to balancing the budget. But, it was the policy of the conservative leadership to focus on cutting spending only and not raising revenues. Initially, huge chunks were taken from the budgets affecting healthcare for the less fortunate and mental health and retardation. Common sense finally prevailed and these areas were assessed cuts that were much less harsh. Still, there will be Texans who suffer and who eventually will end up in the emergency rooms or in jail. As with all of the cuts, the responsibility will eventually be dumped on local taxpayers. The final budgets have a tremendous impact on two groups of consumers: teachers and state employees. Previous estimates from very reliable sources indicated that as many as 100,000 state funded employees would lose their jobs in Texas. This is because the cross hairs were placed squarely on teachers and state employees. While the amending process may have reduced the actual number, placing tens of thousands of wage earners out of work will stop any improvement in the state economy. School districts have already released many teachers.

If the estimates for job losses are correct, take the 100,000 and multiply that by $50,549 which is the average annual income for Texans. We are affecting a potential $5,054,900,000 in consumer spending. That amount, if it turns over three to five times, may take out between $15.2 billion and $24.3 billion from the economy. With respect to your profession, how many people will lose their home to foreclosure or be forced to sell their homes

at a loss? In either case, the average price of homes will suffer. This is the same scenario we faced two years ago when your production numbers decreased significantly. The numbers used are, honestly, a worst case scenario. There was plenty of argument against the budgets as presented just based on the impact upon our economy. That seemed the only hope as the leadership did not show a tendency toward compassion.

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EPAB ON THE SCENE Vegas Baby! The El Paso Association of Builders traveled to Las Vegas for the first annual general meeting on June 10. The trip was planned by Sam Shallenberger from Western Wholesale Supply who thought it was time for the Association to do a fun event. Nothing could be better than traveling to Las Vegas and enjoying three days of great food, beautiful hotels and of course the opportunity for gaming. Our host hotel was the fabulous Paris Hotel on the Vegas Strip. Accommodations were made available through Sun Travel of El Paso. Isabelle Caballero coordinated for us there and we’d like to thank her for a great job. Some of the members booked on their own, but one thing we had in common was a private back stage tour of Bally’s Jubilee show, where we learned it’s just not a pretty face that gets you the chance to be in it. Since 1981 Jubilee has entertained hundreds of thousands of visitors with the fancy expertise of beautiful dancers and extreme sets. A surprise was to learn that the stage is also the setting for the Price is Right TV game show. Some of our members really wanted a chance at Panko, but because of restrictions that wasn’t available. Still seeing the sets, the costumes and all the work that goes into the shows we came away with a better understanding of what Jubilee is. Our hostess, Lara, is a trained ballerina with years of dance experience. Her costumes cannot be altered for her; rather she must alter her body to fit in them. After all a $50,000 costume can’t be built every day for any showgirl! Our meeting was held immediately after the tour. We’d like to thank all those who went to Vegas with us, but we won’t reveal who they were. What and who was in Vegas stays in Vegas. Or you can look at the attached pictures to figure that out yourself. We look forward to another great Vegas trip next year.

10 JULY 2011 Help Get HBI Certification Approved For Your School District The Home Builders Institute’s (HBI) educational materials for high schools and two-year programs are designed to bring increased professionalism, competency and effectiveness to those entering the residential construction workforce. “Certification” is the current buzz word and is a must to receive various types of funding in many secondary, community college and technical training programs. In many schools, the goal of Career and Technical Education (CTE) programs is to provide students with credentials and certifications which are recognized and valued by industry partners. However, in districts across the country, the HBI/NAHB certification is not on their approved list of certifications. HBAs and NAHB members are crucial in helping to address this problem and strengthen the industry’s future workforce through schools in their communities. Involvement in CTE programs by industry professionals should be happening nationwide. HBI has industry certification available for students using the Residential Construction Academy (RCA) series of textbooks. Based on national skill standards set by NAHB industry professionals and educators, we have launched student certification for high schools, post-secondary institutions and adult training centers. The online assessments are available for Basic Principles for Construction, Carpentry, Facilities Maintenance, House Wiring and HVAC. Certification testing is offered at three proficiency levels, entry, semi-skilled and skilled. The student certification assessments reinforce HBI’s commitment to assist the industry in preparing a knowledgeable and productive workforce. Help get HBI/NAHB certification added in Texas. Please contact Deanna Lewis at 202-266-8927 "mailto:dlewis@hbi.org" dlewis@hbi.org for further guidance on how to work with your local school district.

Builders Outlook

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NAHB study examines government’s impact on price of new homes Home building is one of the most regulated industries on earth, and anewly published NAHB study helps confirm this unfortunate fact. Regulations come in many forms and can be imposed by governments at different levels. At the local level, jurisdictions may charge permit, hook-up, and impact fees and establish development and construction standards that either directly increase costs to builders and developers, or cause delays that translate to higher costs. State governments may be involved in this process directly or indirectly. Several states, for example, have adopted state-wide building codes. And although impact fees are imposed by local governments, such fees typically cannot be imposed without enabling legislation at the state level. The federal government can also impact the price of a home—for example, by requiring permits for stormwater discharge on construction sites, which may lead to delays in addition to the hard cost of filing for a permit. These are only a few examples of regulations that builders and developers encounter in practice. NAHB's study, How Government Regulation Affects the Price of a New Home, provides estimates of the

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impact that such regulations have on the price of a home. And those estimates are truly eye-opening; they indicate that, on average, regulations imposed by government at all levels account for 25.0% of the final price of a new singlefamily home built for sale. Nearly twothirds of this -- about 16.4% of the final house price -- is tied to higher costs associated with the finished lot due to regulations imposed during the lot’s development. A little over one-third -- 8.6% of the house price -- is the result of costs incurred by the builder after purchasing the finished lot. The study points out that the relatively high share of regulatory costs affecting a home during its development are particularly significant in the current environment, when there is a low level of developed land in the pipeline. Thus, in most cases the full range of regulatory costs—those that fall on development as well as construction— will need to be overcome if production and employment in the housing industry are to get back on track. For more information, contact study author _Paul Emrath_ (mailto:pemrath@nahb.org) at 800-368-5242, x8449.

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Builders Outlook

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

■ executive officers Greg bowling, President Tropicana Homes frank arroyos, vice President Cisco Homes edmundo dena, secretary/treasurer Accent Homes sam shallenberger, associates council Wholesale Supply Kelly sorenson, immediate Past President Vision Consultants ray adauto, executive vice President El Paso Association of Builders

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 Sam Shallenberger Assoc. Co-Chair Lance Van Demon Build PAC El Paso Randy Bowling Desert Green Building Council Javier Ruiz Industry Promotions Kelly Sorenson Land Use Council Linda Troncoso Sal Masoud Adams Pro AM Committee David Bogas Young Designer Award John Chaney Home Show Sam Shallenberger Remodelors Rudy Guel Membership Drive Mike Santamaria Finance Committee Kathy Carillo Education Committee Frank Spencer ■ advisorY to tHe board J. Crawford Kerr, Attorney, Firth, Johnson & Martinez

R u o Y

Plumbing Supply Source in El Paso 4 3 0 0 R o s a S t. E l Pa s o, T X 7 9 9 0 5

( 9 1 5 ) 5 32 -3 9 1 7 • Fa x : ( 9 1 5 ) 5 32 -3 9 1 9

■ board of directors John Arranda, Southwest Securities Bank, FSB Joe Bernal, Joe Bernal Insurance David Bogas, EPT Communities Doug Borrett, Karam Co. Edmundo Dena, Accent Homes Ted Escobedo, Snappy Publishing Art Garcia, El Paso Door Juanita Garcia, ICON Custom Home Builder,LLC Lorraine Huit, Cardel Design Group Walter Lujan, Dawco Home Builders Bruce Meyer, JDW Insurance Robert Najera, Roberts Construction Kathy Parry, Hunt Communities Bob Paschich, Oeste Homes Kathy Rose, Builders Source Regina Sanchez, Bank of Texas Sam Shallenberger, Western Wholesale Frank Torres, GMF Homes Paul Zacour, Zacour & Associates

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

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 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.

■ NatioNal directors Bobby Bowling IV. Demetrio Jimenez

Builders Outlook

JULY 2011

Bowl-A-Thon! Tuesday, July 19 at Bowl El Paso 11144 Pelicano Registration at Noon Bowling starts at 12:30 4 man teams $25.00 per person includes lunch and shoes We need raffle prizes (gift cards etc.) Lane sponsors Call 778-5387 Today Daddy-O!

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6046 Surety Dr • 915-778-5387

UPCOMING EVENTS July 13 Associates Council meeting 12 Noon EPAB Offices

July 19 Bowl –A-Thon 12 Noon Bowl El Paso 11144 Pelicano

July 27 Land Use Council meeting 12 Noon EPAB Offices

August 10 Board Meeting 11:00 General Meeting 12 Noon El Paso Club

August 30 Adams Golf Pro Tour Series Painted Dunes Desert Golf Course

RENEWALS El Paso Building Materials Bella Vista Custom Homes, Inc.

Bank of America Home Loans

BSH Corporation/ Thermador

New Start Insulation Southwest Alarm Services

Cullers and Caldwell Builders

Loretta Blankenship, CPA CMF Enterprises, Inc.

Builders Source Inc. Moscato Homes

E. C. Plumbing Inc. Border Solar

Castillo Electric A & A Air Conditioning, Inc.

Kitchens & Bath Cabinets by Centro Solutions LLC

NEW MEMBERS Casa De Leon, LLC Nick Bombach 501 N. Kansas St., Ste. S-201 El Paso, TX 79901 915-231-1812

SODA SPONSOR Thanks to our JULY SODA SPONSOR: Carefree Homes 11395 James Watt, Suite A-11 79936 915-633-8002

14 JULY 2011

Builders Outlook

Industry Reports Associates Council

Sam Shallenberger Western Wholesale Supply

Hi everyone I hope everyone had a safe and fun filled 4TH of July weekend. Speaking of fun Las Vegas was a BLAST. We had a back stage tour of Jubilee the oldest running old time show in Las Vegas. I was so cool to see how everything works. I hope we can make this a yearly event because there were over twenty of us and I think everyone had a great time. The Build N Bowl outing is just around the corner and we have twenty four lanes reserved at Bowl El Paso so put your team together

Bowling starts at 12:30 . There will be raffle prizes, food and sodas all for twenty five dollars a head. It will be hot outside and what a wonderful way to spend a HOT July afternoon. The Adams Golf EL Paso Desert Open Pro Am presented by the El Paso Association of Builders will held on August 30th this is a opportunity to play with the PGA TV pro’s of the future. We have some great sponsor opportunities available if you are interested please contact Ray at 778-5387.

Last but not least is our associate council meeting to be held on July 13th at 11:45. If you want lunch please Call Angie at the office and give her your credit card number. The meeting will start at 12:00 and I promise it will be over by 1:00.

1. Kitchen helper. From a $400 storebought island for bill-paying to a breakfast bench nook with file drawers built in under the seats (cost: $5,000 to $15,000), your kitchen is a treasure trove of small office possibilities. Even a slideout cutting board (about $500 in a cabinet package) can serve as a nifty desktop.

3. Porch possibilities. Convert that long, narrow space on the side of your small home that gets only seasonal use to a year-round office for about $15 per square foot. Use plug-in space heaters and fans for your HVAC system. Use inexpensive, freestanding shelves to provide storage space. Cost: About $70 for a 30-by-80-inch bookshelf.

5. Under-used dining rooms. Formal dining rooms can be overrated. If yours isn’t being used regularly, convert it to a small office. You’ll be close to your main entry, making it easy to receive clients and business associates. If a nearby kitchen or other busy household area is a noisy distraction, install French or sliding doors as acoustic barriers.

4. Those out-of-the-way spaces. Alcoves, lofts, stair landings, basement and garage corners, and bedroom nooks qualify as potential office space. Use freestanding shelving units and bookcases. Plants or privacy screens can “wall” the area without making it feel smaller.You can build a bench for visitors with storage space inside for about $130. Want a craftsman to build it for you? Add another $300 to $400.

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

See you all at the meeting.

REALTOR/Builder Angela Ochoa GEPAR

Fit a Small Office in Your Small Home By: Terry Sheridan 1Setting up a small office in your small home means finding new uses for closets and other tucked-away spaces. You can also get creative by making rooms do double duty.

EPAB ON THE SCENE

TAB Meeting The Texas Association of Builders held three days of meetings in Houston for the first time in several years. The overall results from the 82nd Legislature dominated the talks and various issues surrounding our lobbying efforts. Successful lobbying led to housing victories for the most part, but the continuing state budget woes will impact our future efforts for sessions to come. TAB President Randy Baird of Houston resigned for personal reasons and the board moved the ladder up until the next meeting when new elections will take place. The SunBelt show will be in Austin rather than Grandprairie this year and booth sales have already doubled from a year ago. El Paso Association has the highest percentage of contributions to quota of any HBA in the state, eventhough only a few members made contributions. More on that in another column. Attending for the EPAB was Greg Bowling, Randy Bowling, Bobby Bowling, and Ray Adauto.

2. Closet conversion. Get rid of unused stuff or consolidate it in another area, and a 3- to 8-foot-wide closet accommodates a built-in desk, shelves, and lighting. Make a nearby chair do double duty for your desk. With doors and wiring for lighting and a phone, and possible added drywall, your new small office would cost $2,000 to $4,000. Keep in mind that the more floors and walls that wiring has to travel through, the costlier it gets.

EPAB ON THE SCENE

Board Meeting The EPAB Board of Directors met to get an update on the recent meetings held in Houston for the Texas Association of Builders. The most critical issues were identified and reported to the Board by President Greg Bowling. Over 144 bills were targeted by TAB as the ones most likely to impact housing in Texas and most were either defeated or never went for votes. Key issues will continue to dog the industry in the 83rd legislature due to extreme financial conditions at state government. New builder contracts will be available in September to members in good standing. In other news the Board approved the move of Frank Arroyos to Vice President and Edmundo Dena to Secretary Treasurer. Past President Del Huitt stepped down after deciding to enter into his new venture and away from home building. The Board also approved a motion to clear out the membership list of those companies who have failed to renew or have resigned. A committee was set up to cleanse the A/R list and report back to the Board in August.