Issue 7 2011 Building El Paso’s tomorrow today

Builders Outlookwww.elpasobuilders.com

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.

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 anti-

sanctuary 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 (R-

Houston) and David Simpson (R-

Longview), 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.

82nd Legislature ends, Texas Builders prepare for 83rd

82nd Legislature

Story

continues

page 3

Builders Outlook2 JULY 2011

Builders Outlook3

The Senate also adopted the conferencecommittee reports on both of the educationreform bills: SB 6 by Senator FlorenceShapiro (R-Plano) and Representative RobEissler (R-The Woodlands), whichcombines the textbook fund and thetechnology allotment fund into a newinstructional materials fund; and SB 8 bySenator Florence Shapiro (R-Plano) andRepresentative Rob Eissler (R-TheWoodlands), which gives school districtsflexibility on personnel and other matters;and they adopted the report on SB 2 bySenator Steve Ogden (R-Bryan) andRepresentative Jim Pitts (R-Waxahachie),a supplemental appropriations bill.Senator Wendy Davis (D-Fort Worth) andnine other Democrats voted againstadoption of the conference committeereport on SB 2 and Davis and eleven otherDemocrats voted against adoption of theconference committee report on SB 8.After recessing into a caucus for twohours, the Senate came back to pass SB 29by Senator Dan Patrick (R-Houston) andRepresentative David Simpson (R-Longview), which classifies intrusivetouching used in searching personsseeking access to public buildings andtransportation as official oppression.

Last Tuesday, the Senate adopted theconference committee report on SB 1 bySenator Robert Duncan (R-Lubbock) andRepresentative Jim Pitts (R-Waxahachie),the fiscal matters bill. Senator Leticia Vande Putte (D-San Antonio) was one of nineDemocrats to vote against the conferencecommittee report on SB 1.

The Senate also adopted the conferencecommittee report on HB 3 byRepresentative John Smithee (R-Amarillo)and Senator John Carona (R-Dallas),which makes changes to the TexasWindstorm Insurance Association. UponSenate adoption of the conferencecommittee report on HB 3, Lt. GovernorDavid Dewhurst said, “When hurricanesstrike, Texans want to know that theirhomes and businesses are protected.Passing the TWIA bill – on the eve ofhurricane season – will help protect ourcoastal policyholders, while preventinglawsuit abuse, promoting greater oversightand transparency and improving theoverall solvency of the fund.”

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

the Texas Senate. And, prior toadjournment, Lt. Governor DavidDewhurst said, “I want to congratulate allof our Members, Speaker Straus, andGovernor Perry on one of the mostconservative sessions in Texas history. Ihave enjoyed working together to makeTexas an even better place to live, workand raise a family. When you consider thechallenges we faced – particularly with thebudget – it’s remarkable that we were ableto get so much done. We have provenonce again there is no limit to what we canaccomplish when we put Texans first.

Accomplishments of the 82nd Session of

the Texas Legislature include:

• Balancing the budget without raisingtaxes

• Reducing current state spending byalmost $15 billion

• Saving nearly $6.5 billion in our RainyDay Fund

• Increasing state funding for publicschools by almost $4 billion

• Passing a historic ‘Loser Pays’ tortreform law to reduce frivolous lawsuits

• Passing landmark, free marketinitiatives to improve health care andreduce costs

• Enacting a strong Voter ID law toprotect the integrity of our elections

• Providing pregnant women theopportunity to see a sonogram of theirunborn child

• Protecting the Second Amendmentrights of gun owners

• Redrawing Texas House, Senate andCongressional Districts for the nextdecade

• Creating an Instructional MaterialsAllotment for school districts

• Providing flexibility for school districtswith their management and operations

• Reforming Texas Windstorm InsuranceAssociation and limiting lawsuit abuseand protecting coastal property owners"

HOUSE – Last Monday, the Houseadopted the conference committee reportson SB 2 by Senator Steve Ogden (R-Bryan) and Representative Jim Pitts (R-Waxahachie), a supplementalappropriations bill; SB 6 by SenatorFlorence Shapiro (R-Plano) andRepresentative Rob Eissler (R-TheWoodlands), which combines the textbookfund and the technology allotment fundinto a new instructional materials fund; SB7 by Senator Jane Nelson (R-FlowerMound) and Representative John Zerwas(R-Fulshear), which makes severalchanges that improve efficiencies in healthand human services delivery; and SB 8 bySenator Florence Shapiro (R-Plano) andRepresentative Rob Eissler (R-TheWoodlands), which gives school districtsflexibility on personnel and other matters.

All but two House Democrats votedagainst the conference committee reporton SB 2 and all of the House Democratsvoted against the conference committeereport on SB 8.

The House debated and gave preliminaryapproval to HB 41 by David Simpson (R-Longview), which would classify intrusivetouching used in searching personsseeking access to public buildings andtransportation as official oppression.

On Tuesday, May 29, it looked like thespecial session was going to blow up whenthe House took up the conferencecommittee report on SB 1 by SenatorRobert Duncan (R-Lubbock) andRepresentative Jim Pitts (R-Waxahachie),the fiscal matters bill – the specialsession’s most important piece oflegislation. The Senate had alreadyadjourned sine die. The motion to adoptthe conference committee report initiallyfailed by a vote of 64 to 79 with 32 of theHouse Republicans voting against it, andfour Republicans were absent. TheRepublican Caucus retreated to theAgriculture Museum to try to salvage thebill. When they returned, RepresentativePhil King (R-Weatherford) made a motionto reconsider the vote by which theconference committee report on SB 1failed, and it was finally passed by a voteof 80 to 57 (16 Republicans switched to“yes”).

Also on Tuesday, the House scrambled tofigure out a way to pass the TSA intrusivetouching bill after the Senate had vacatedthe building and was not available to acton any measures the House sent over tothem. The House version, HB 41, was onthe House calendar for third reading. TheSenate had passed SB 29 beforeadjourning, so it was quickly referred tothe House Criminal JurisprudenceCommittee. The Chairman,Representative Pete Gallego (D-Alpine)asked the House to suspend the rules inorder for his committee to have a formalmeeting to consider SB 29 and pass it outso it could be substituted for the House billon Wednesday. The House also passedHCR 5 by Representative Linda Harper-Brown (R-Irving) urging Congress to takeappropriate action to ensure acceptabletreatment of the public by personnel of theTransportation Safety Administration.

Last Wednesday, the House concurred inSenate amendments to HB 79 byRepresentative Tryon Lewis (R-Odessa)and Senator Robert Duncan (R-Lubbock),the fiscal matters bill streamliningoperations of the judiciary.

The House also had almost two hours ofdebate, parliamentary procedures, and anemotional personal privilege speech inregard to SB 29 by Dan Patrick (R-Houston) and David Simpson (R-Longview), the intrusive touching bill.First, the House reconsidered the vote bywhich HB 41, the House version, passed tothird reading to get it back to secondreading. Then, SB 29 was substituted forHB 41. The House debated and passed SB29 to third reading by a vote of 106 to 27.Then, the motion to suspend theconstitutional rule requiring bills to beread on three several days requiring a four-fifths vote failed 96 to 26, with 26 absent.It fell 24 votes short. RepresentativeSimpson followed that with a personalprivilege speech lamenting the bill’sfailure and promising to keep up the fight.Representative Garnet Coleman (D-Houston) led the House opposition to SB29. He characterized the legislation as“designed to criminalize the pat downprocedures that TSA agents use to ensurethe safety of air passengers.”

Representative Fred Brown (R-CollegeStation) said a tearful farewell to hisHouse colleagues and announced that hewill be resigning after 12 years in theHouse and moving to Salado to take a newjob in Temple. Representative WarrenChisum (R-Pampa) also said goodbye tohis fellow House members but promised tosee them on the campaign trail during hisrace for the Railroad Commission.

The House adjourned sine die around12:30 on Wednesday. Prior to adjourning,Speaker Joe Straus commended Housemembers for 170 days of hard work anddeclared the conclusion of the two sessionsto be very successful and productive,though difficult legislative sessions. Hethanked the members for working hard ina responsible and responsive way,representing the interests of every Texan.

The Speaker listed important

accomplishments from the 82nd

Session:

• “Balanced 2012-13 biennial state budgetthat uses no new taxes, is fiscallyresponsible and lives within our means.

• Provided $1.6 billion more dollarsdirectly to our state’s public schools, a5.6% increase in state funding.

• Reduced All Funds spending by over $15billion from the 2010-11 budget.

• Passed all four redistricting mapsrequired this year.

• Promoted accountability andtransparency in state government and inhigher education and passed majorsunset legislation including neededchanges to the Texas Youth Commission.

• Reformed and updated the TexasWindstorm Insurance Association toprotect homeowners along the TexasCoast.

• Protected the voting rights of militarypersonnel who serve our country in thearmed forces.

• Passed Governor’s emergency itemsincluding private property protection,sonogram legislation, tort reform thatfurther curbs lawsuit abuse, and Voter IDlegislation that protects the integrity ofthe ballot.”

82nd Legislature

si·ne die: adv: without any future date beingdesignated (as for resumption): indefinitely ‘the meetingadjourned sine die’

Builders Outlook4 JULY 2011

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.

Greg

Bowling

President,

El Paso Association

of Builders

President’s Message

Jaime’s Courier Service, Inc.

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

El Paso Disposal

772-7495

Builders Outlook 5JULY 2011

Builders Outlook6 JULY 2011

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 bondrequirement. 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 locallevel. 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.

EPAB on track for achieving 2011 goals an beyondPerspective

Ray Adauto,Executive Vice PresidentEPAB

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

A tradition of Excellence for over 60 Years

With sixty years of experience and over10,000 quality homes built in El Paso,Tropicana Homes has become a namesynonymous with quality construction. Asthey continue to grow and expand,community involvement remains a toppriority. Their commitment to the industryand community has made TropicanaHomes the premier builder in El Paso.

El Paso Builder of the Year 1988, 1997, 2005

Texas Builder of the Year 2003

Texas Industry Leader 2004

Texas Developer of the Year 2009

Showroom: 2131 Missouri

915 • 533 • 6045 fax • 533• 6096

Thomas R. Brown, Owner

Give your customers the ‘option of the sun’

Now more than ever,

El Paso home buyers

are planning for the

future.

Border Solar can help

you offer your

customers solar power

as a sensible

alternative.

The future starts

today.Crossing to Clean Energy

www.bordersolar.com

7365 Remcon Circle

El Paso, TX 79912

(915) 613•4168

follow us on twitter and

facebook:

BorderSolar

Builders Outlook 7JULY 2011

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

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.

Actions by the legislature will dampen the enthusiasm of consumers

Chente Quintanilla

State Representative

Guest Perspective

EPAB ON THE SCENE

JUly 2011

Vegas Baby!The El Paso Association of Builders traveled to

Las Vegas for the first annual general meeting onJune 10. The trip was planned by SamShallenberger from Western Wholesale Supplywho thought it was time for the Association to do afun event. Nothing could be better than traveling toLas Vegas and enjoying three days of great food,beautiful hotels and of course the opportunity forgaming. Our host hotel was the fabulous ParisHotel on the Vegas Strip. Accommodations weremade available through Sun Travel of El Paso.Isabelle Caballero coordinated for us there andwe’d like to thank her for a great job. Some of themembers booked on their own, but one thing wehad in common was a private back stage tour ofBally’s Jubilee show, where we learned it’s just nota pretty face that gets you the chance to be in it.Since 1981 Jubilee has entertained hundreds ofthousands of visitors with the fancy expertise ofbeautiful dancers and extreme sets. A surprise wasto learn that the stage is also the setting for the Priceis Right TV game show. Some of our membersreally wanted a chance at Panko, but because ofrestrictions that wasn’t available. Still seeing thesets, the costumes and all the work that goes into theshows we came away with a better understanding ofwhat Jubilee is. Our hostess, Lara, is a trained bal-lerina with years of dance experience. Her cos-tumes cannot be altered for her; rather she mustalter her body to fit in them. After all a $50,000 cos-tume can’t be built every day for any showgirl! Ourmeeting was held immediately after the tour. We’dlike to thank all those who went to Vegas with us,but we won’t reveal who they were. What and whowas in Vegas stays in Vegas. Or you can look at theattached pictures to figure that out yourself. Welook forward to another great Vegas trip next year.

Builders Outlook10JULY 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

" m a i l t o : d l e w i s @ h b i . o r g "

dlewis@hbi.org for further guidance

on how to work with your local

school district.  

www.swher.com

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

Ph. (915) 613-4168

Fx. (915-833-6437

SENERCONSouthwest Energy Conservation, LLC

www.energystarelpaso.com

Change the World...

One Home at a Time...

7365 Remcon Circle El Paso, TX 79912

Builders Outlook JULY 2011 11

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

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 single-

family home built for sale. Nearly two-

thirds 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.

NAHB study examines

government’s impact on price of

new homes

Builders Outlook12JULY 2011

YouR

Plumbing SupplySource in El Paso

44330000 RRoossaa SStt..EEll PPaassoo,, TTXX 7799990055

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

� 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

� 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

� 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

� NatioNal directors

Bobby Bowling IV.

Demetrio Jimenez

2010 builder member of the Year

Mike Santamaria

Mountain Vista Builders

2010 Pat cox award

Randy Bowling

Tropicana Homes

2010 associate of the Year

Javier Ruiz

Border Solar/Senercon

John schatzman award

Lorraine Huit

Cardel Design Group

Honorary life members

Brad Roe

Cliff Anthes

Wayne Grinnell

Chester Lovelady

Don Henderson

Anna Gil

Past Presidents

committed to serve

ePab mission statement:

The El Paso Association of Builders is a federat-

ed professional organization representing the

home building industry, committed to enhancing

the quality of life in our community by providing

affordable homes of excellence and value.

The El Paso Association of Builders is a

501C(6) trade organization.

© 2011 Builder’s Outlook

is published and distributed for the

El Paso Association of Builders

by Snappy Publishing

240 Thunderbird • Suite C

El Paso • Texas • 79912 915-820-2800

6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038

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

NatioNal associatioN of

Home builders

(800) 368-5242

texas associatioN of

builders

(800)252-3625

www.elpasobuilders.com

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

NEW MEMBERS

RENEWALS

SODA SPONSOR

Casa De Leon, LLC

Nick Bombach

501 N. Kansas St., Ste. S-201

El Paso, TX 79901

915-231-1812

Builders Outlook 13JULY 2011

UPCOMING EVENTS

Thanks to our

JULY SODA 

SPONSOR:

Carefree Homes

Membership News

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

El Paso Building Materials

Bella Vista Custom Homes,

Inc.

Builders Source Inc.

Moscato Homes

Bank of America

Home Loans

Cullers and Caldwell Builders

E. C. Plumbing Inc.

Border Solar

BSH Corporation/

Thermador

Loretta Blankenship, CPA

Castillo Electric

A & A Air Conditioning, Inc.

New Start Insulation

Southwest Alarm Services

CMF Enterprises, Inc.

Kitchens & Bath Cabinets by

Centro Solutions LLC

6046 Surety Dr • 915-778-5387 www.elpasobuilders.com

Bowl-A-Thon!Tuesday, July 19 at Bowl El Paso11144 Pelicano Registration at Noon Bowling starts at 12:304 man teams$25.00 per person includes lunch and shoesWe need raffle prizes (gift cards etc.)Lane sponsors Call 778-5387 Today Daddy-O!

Associates CouncilHi 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.

See you all at the meeting.

Builders Outlook14 JULY 2011

Industry Reports

Sam Shallenberger

Western Wholesale

Supply

REALTOR/Builder

Fit a Small Office in

Your Small HomeBy: 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.

1. Kitchen helper. From a $400 store-

bought 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 slide-

out cutting board (about $500 in a cabinet

package) can serve as a nifty desktop.

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.

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.

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.

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.

Fostering harmony amongst home

builders, real estate professionals, and

affiliate companies

Angela Ochoa

GEPAR

TAB MeetingThe Texas Association of Builders held

three days of meetings in Houston for thefirst time in several years. The overallresults from the 82nd Legislaturedominated the talks and various issuessurrounding our lobbying efforts.Successful lobbying led to housing victoriesfor the most part, but the continuing statebudget woes will impact our future effortsfor sessions to come. TAB President RandyBaird of Houston resigned for personalreasons and the board moved the ladder upuntil the next meeting when new electionswill take place. The SunBelt show will be inAustin rather than Grandprairie this yearand booth sales have already doubled froma year ago. El Paso Association has thehighest percentage of contributions to quotaof any HBA in the state, eventhough only afew members made contributions. More onthat in another column. Attending for theEPAB was Greg Bowling, Randy Bowling,Bobby Bowling, and Ray Adauto.

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.

EPAB ON THE SCENE