Download - Builders Outlook 6.12
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 new-
home 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 StartsRise 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
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
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
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.
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www.elpasobuilders.com www.epbuilders.org
2012/6
New-HomeSales andStarts onthe rise
DIGITAL EDITION
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
Congressman visits El Paso Builders
The latest data providesevidence of the kind ofslow but steady growth thatwe expect to see inhousing production throughthe end of the year, andshows that housingcontinues to regain strengthregardless of someweakening in other parts ofthe economy.”
-David Crowe.NAHB Chief Economist
2 Builders Outlook 2012/6
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
them to success. This is a momentous time in
our recovery as housing gets rolling again. We
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!
President’s Message |
El Paso Disposal
772-7495
32012/6 Builders Outlook
Frank
Arroyos
President,
El Paso Association
of Builders
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
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.
Perspective |
Ray Adauto,Executive Vice PresidentEPAB
4 Builders Outlook 2012/6
School District corruption affects more than students
Housing a victim as well
52012/6 Builders Outlook
More than 700 home builders trekkedto Capitol Hill on June 6, 2012, to callon Congress to make housing andhomeownership a national priority andto take concrete steps to get housingback on track in order to create jobsand keep the economy moving forward.
“Though we are seeing some hopefulsigns of recovery in many marketsthroughout the nation, our industry still
faces stiff headwinds,” xzsaid NAHBChairman Barry Rutenberg, a homebuilder from Gainesville, Fla.
Persistently tight lending standardsfor home builders and home buyers,uncertainty regarding the future of thehousing finance system, ongoingthreats to vital housing tax incentives,and overly burdensome regulations arehampering a housing recovery and
keeping countless home building firmsfrom constructing viable projects andhiring new workers, he added.
In more than 250 individual meetingswith their representatives and senators,builders called on their lawmakers to:
Support legislation to restore theflow of credit for new housingproduction. NAHB is urging the HouseFinancial Services Committee toconsider H.R. 1755, the HomeConstruction Lending RegulatoryImprovement Act. Sponsored by Reps.Gary Miller (R-Calif.) and Brad Miller(D-N.C.), the measure currently has 96co-sponsors and would remove barriersto lending while preserving theregulators’ ability to assure the safetyand the soundness of the financialinstitutions they oversee. NAHB isseeking cosponsors for similarlegislation in the Senate, S. 2078, theHome Building Lending ImprovementAct, sponsored by Sens. BobMenendez (D-N.J.) and Johnny Isakson(R-Ga.).
Pass comprehensive legislation toreform housing government sponsoredenterprises Fannie Mae, Freddie Macand the Federal Home Loan Banks thatprovides a federal backstop to ensure areliable and adequate flow of affordablehousing credit in all economic andfinancial conditions.
Preserve current housing taxincentives, including the mortgageinterest deduction and Low IncomeHousing Tax Credit, as the debate ontax reform moves ahead.
Support legislation to make much-needed improvements to theEnvironmental Protection Agency’sLead: Repair, Renovation and Painting(LRRP) rule. Sponsored by Sen. JamesInhofe (R-Okla.), the Lead ExposureReduction Amendments Act of 2012 (S.2148) would offer several reforms toEPA enforcement of the lead paint rule,including reinstating the opt-outprovision to allow home owners withoutsmall children or pregnant womenresiding in them to decide whether torequire LRRP compliance.
Cosponsor House and Senate billsthat would reduce the overreach offederal power under the Clean WaterAct. House bill H.R. 4965, the Preservethe Waters of the United States Act, andits identically named Senate companionmeasure (S. 2245), would prevent theEPA and U.S. Army Corps of Engineersfrom finalizing or implementing theirdraft guidance to expand the reach ofthe Clean Water Act to include virtuallyevery ditch, pond and seasonal runoffditch in the nation.
“In this pivotal election year, it isimperative to ensure that presidentialand congressional candidates on bothsides of the political aisle understandthe importance of housing andhomeownership,” said Rutenberg.“Today, builders from across the landreiterated this message to theirlegislators and reminded them thatthere can be no economic recoverywithout a housing recovery.”
-NAHB
More than 700Builders Call on
Congress to Make Housing andHomeownership a
National Priority
6 Builders Outlook 2012/6
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 in-
depth 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.”
Builders Stress Importance of Multifamily
Housing Finance Programs
Student Loan Debt
Crisis Linked to
Lower Home
Values
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
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 PointBuilder 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 four-
point 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
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72012/6 Builders Outlook
General MeetingThe 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 associa-
tion also welcomed many of the newest members. It
was an important meeting for the association as it wel-
comed 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 repre-
sented today and the direction the association is going.
I’m excited as we continue to grow and move forward.”
Builders utlook on the scene |Congressman visits EPAB
New MemberOrientation
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 leader-
ship 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 compa-
nies 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
2012/6
Bipartisan Lead Paint
Bill: Ease Regulatory
Burdens without
Compromising Safety Responding to concerns from the National
Association of Home Builders (NAHB) andaffiliated trade groups, Reps. John Sullivan (R-Okla.) Tim Murphy (R-Pa.) and a bipartisan listof original co-sponsors today introducedlegislation to make much-neededimprovements to the Environmental ProtectionAgency’s Lead: Repair, Renovation andPainting (LRRP) rule.
H.R. 5911, the Lead Exposure ReductionAmendments Act of 2012, is similar tolegislation (S. 2148) unveiled earlier this yearin the Senate by Sen. James Inhofe (R-Okla.)and five other cosponsors that would helphome owners and remodelers to better complywith the costly work practices and recordkeeping requirements of the rule withoutcompromising safety standards.
“We commend Reps. Sullivan and Murphyfor championing this bill that will not only makethe EPA’s lead paint rule more workable, butcontinue to protect pregnant women and smallchildren,” said 2012 NAHB RemodelersChairman George “Geep” Moore Jr., GMB,CAPS, GMR, a remodeler from Elm Grove, La.“This legislation will provide families greaterflexibility to decide on their own remodelingactivities and give them the peace of mind ofknowing sound safeguards remain in place toprotect against lead hazards.”
Additional co-sponsors include Reps.Leonard Boswell (D-Iowa), Aaron Schock (R-Ill.), Billy Long (R-Mo.), Kristi Noem (R-S.D.),Frank Lucas (R-Okla.), Dan Boren (D-Okla.),Tom Cole (R-Okla.) and James Lankford (R-Okla.)
The LRRP rule, which took effect on April22, 2010, requires that remodelers andcontractors working in homes built before 1978be trained and certified by the EPA on lead-safe work practices before they can legallywork in those homes.
Three months later, EPA removed the “opt-out” provision in the LRRP that allowedremodelers working in a home built prior to1978 to forego more expensive work practicesaccording to the owner’s wish if no childrenunder the age of six or pregnant womenresided there.
By removing the opt-out provision, EPAmore than doubled the number of homessubject to the LRRP. The agency hasestimated this will add more than $336 millionper year in compliance costs to the remodelingcommunity, and more importantly, withoutmaking young children any safer.
Further, EPA has failed to approve a test kitthat meets the “false positive” and “falsenegative” criteria stated in the regulation.
By failing to perform a study of leadexposure rates from work on commercial andpublic buildings, the agency has alsoexceeded its congressional mandate bystarting the process of extending the LRRP tothose structures through an Advanced Noticeof Proposed Rulemaking.
Both the House and Senate bills wouldaddress these concerns and offer otherreforms for EPA enforcement of the lead paintrule. Specifically, the legislation would:
• Reinstate the opt-out provision to allowhome owners without small children orpregnant women residing in them – not thegovernment -- to decide whether to requireLRRP compliance.
• Suspend the LRRP if EPA does notapprove a commercially available test kit thatmeets the regulation’s requirements.
• Allow remodelers to reduce fines if theycorrect paperwork errors found during aninspection.
• Eliminate the “hands on” recertificationtraining requirements that force someremodelers to travel long distances to trainingfacilities to receive proper certification.
• Prohibit EPA from expanding the LRRP tocommercial and public buildings until at leastone year after the agency conducts a studydemonstrating the need for such an action.
• Clarify the definition of “abatement” tospecifically exclude remodeling andrenovation activities.
• Provide an exemption to the regulation foremergency renovations.
NAHB is urging its members to contact theirrepresentatives and senators and urge them tocosponsor the respective lead paint billspending in the House and Senate.
For additional information about lead paint ruleenforcement and compliance, visit
www.nahb.org/leadpaint.
10 Builders Outlook 2012/6
112012/6 Builders Outlook
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 sub-
contractors; 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
[email protected], 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.
The future starts
today.Crossing to Clean Energy
www.bordersolar.com
7365 Remcon CircleEl Paso, TX 79912
(915) 613•4168
follow us on twitter and
facebook:
BorderSolar
Back to Energy Star, Energy Efficiency and Solar Energy
Expert Advice
Javier RuizBorder Solar/SWHER
12 Builders Outlook 2012/6
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:
www.m3federal.com
M3 Federal Contracting gives insight into government contracts
Builders utlook on the scene |
Membership News
Thanks to our
JUNE
SODA SPONSOR:
Edwards Homes
UPCOMING EVENTSJULY 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)
SODA SPONSOR CONGRATS CONDOLENCES
years
E L PA S o
BUILDERSA S S o C I A T I o n o F
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 194 6
11395 James Watt, Suite A-11 79936915-633-8002
132012/6 Builders Outlook
www.elpasobuilders.com www.epbuilders.org
WELCOME NEW MEMBERS |
RENEWALS |
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
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
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
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
Installation to move back to
El Paso Country Club
Preliminary plans in the works will
return the Association installation din-
ner 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 8-
5:30, Friday 8-noon. It is expected
that these hours will reduce our ener-
gy bills during July and August.
Meetings and events will still take
place during hours posted for such.
ANNOUCEMENTS
A & E Consultants First National Bank Majestic Realtors Wagner Equipment
To Ted Escobedo and his
family for their loss of Ernie
Escobedo Sr.
To Bob Paschich
On the birth of your
fist Grandson
Leo Marra born
6-20-12
8 lbs. 9 oz. 22” long
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.
Showroom: 2131 Missouri
915 • 533 • 6045 fax • 533• 6096
Thomas R. Brown, Owner
14 Builders Outlook 2012/6
Sam ShallenbergerWestern Wholesale Supply
Associates Council
Jaime’sCourier
Service,Inc.
Jaime’sCourier
Service,Inc.915-549-4533
or 915-478-2404
Bonded, insured foryour peace of mind.
� 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
� 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
� 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
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
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
Past Presidents
committed to Serve
ePAB mission Statement:
The El Paso Association of Builders is a
federated professional organization representing
the home building industry, committed to
enhancing the quality of life in our community by
providing affordable homes of excellence and
value.
The El Paso Association of Builders is a
501C(6) trade organization.
© 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
6046 Surety Dr. El Paso, TX 79905
915-778-5387 • Fax: 915-772-3038
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
� 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
BuiLDerS
(800)252-3625
years
E L P A S O
BUILDERSA S S O C I A T I O N O F
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Builders utlook