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					Volume 40 Issue 9                      December 2010




• Summary of Construction Industries
  Commission Meeting
• Lobbying Tax Deduction for 2011 NAHB and
  NMHBA Dues
           Official Publication of the
      New Mexico Home Builders Association

NMHBA Office Staff
New Mexico Home Builders Association
                                                           Special Features
505-344-7072, Toll Free 1-800-523-8421 FAX: 505-344-3103
E-mail: info@nmhba.org or Website: www.nmhba.org           7      Summary of Construction
Executive VP & CEO, Jack C. Milarch, Jr.                          Industries Commission Meeting
Governmental Affairs Director, Melanie Teeter
Office Manager, Nancy Barron
Bookkeeper/Bonding/Meeting Admin, Melinda Bolivar          9
Receptionist, Kami Showalter
                                                                  Lobbying Tax Deduction for 2011
                                                                  NAHB and NMHBA Dues
NMHBA 2011 Senior Officers
President, Mike Buechter
Past President, Derrick Childers
1st VP/President Elect, Mike Richards
                                                           Regular Features
Associate Vice President, Diana Lucero                     2      Membership Statistics
Secretary Treasurer, Pat Casey

2010 Local HBA Presidents                                  3      Message from the President -
                                                                  New Year Brings Change and
HBA of Central New Mexico, Otley Smith
South Eastern New Mexico HBA, Jim Cardinuto                       Opportunity
HBA of Eastern New Mexico, Dennis Rogers
Building Industry Association of Southern New Mexico,      4      Message from the Executive Vice
Affil. w/NAHB, John Hadley
Lincoln County HBA, Doug Thompson                                 President and CEO - Major Change
San Juan County HBA, Blake Barnett                                Needed in New Mexico's Code
Santa Fe Area HBA, Dalinda Bangert
BCA of Otero County, Josh Rardin                                  Compliance Services
Southwest NMHBA, Patrick Casey

NAHB Representatives                                       12     Calendar
National Associate Director, Betty Shaum
State Representative, Peter Merrill                        About The Cover
National Director, Mike Buechter                                                      The 2280 sq ft Tuscan Villa
NAHB BUILD-PAC Trustee, Skip Mead
                                                                                      model home is built by G.
Affiliated Organizations                                                              Sandoval Construction, Inc.
                                                                                      and has three bedrooms, two
Association Services Corporation                                                      bathrooms, and an office.
dba New Mexico License Bonding
Phone: 505-344-7277 Fax: 505-344-3103                                                  This home rendering was
                                                                                       done by Jack Pumphrey
Builders Trust of New Mexico
                                                                                       Arts. Jack Pumphrey works
Workers’ Compensation Insurance
Phone: 505-345-3477 Fax: 505-344-7245                                                  from his home-based studio
Executive VP & CEO, Jack C. Milarch, Jr.                                               in Las Cruces as a full time
COO, Randy Akin                                                                        illustrator of homes, classic
Chairman, Bob Dolgener                                     cars & yachts. He can be reached at 877-883-8284
                                                           or email inkyarts@comcast.net. More samples of
New Mexico Home Builders Political Action Fund             his home renderings, cars & yachts can be viewed at
NMHB PAF Chair, Randy Crowder                              www.jackpumphrey.com. Take a look at Jack’s new
                                                           electronic catalog at http://jackpumphreyarts.com/
Graphic Design - The Graphics Station
                 505-480-8687                              ecatalog/.

Printing - LithExcel Printing
           505-243-8560
      Membership Statistics
                             Sept   O ct
    Central New Mexico       645    634

    Eastern NM               111    110

    South Eastern NMHBA      118    116

    Lincoln County           112    115

    Southern                 331    325

    Southwestern NMHBA       46     45

    San Juan County          185    184

    Santa Fe Area            559    549

    Otero County             127    126


                     Total   2234   2204




2     NMHBA Housing Journal/December 2010
                                                               landscape to explore in Santa Fe. We hope to have some
                                                               input in the make-up of the regulatory boards that we
                                                               deal with on a frequent basis, and we hope to see building
                                                               industry friends and proponents sitting on the Construction
                                                               Industries Commission. We would love to see an ally
                                                               heading CID. We also expect some progress with CID
                                                               issues this year. We’ll be pushing bills that strengthen the
                                                               roles of local building officials and lessen CID’s role in
                                                               local jurisdictions. With the state budget in tatters, we’d
                                                               like CID to just do the three F’s - foundation, framing and
                                                               final inspections. These are the ones that ensure building
    Mike Buechter                                              and public safety - which CID touts as their core mission.
                                                               Leave the secondary checks (insulation, thermal barrier,
New Year Brings Change and                                     lath & paper) to third parties or self-verification. We don’t
                                                               expect state government to perform miracles in the housing
Opportunity                                                    market, but they could simply allow us to operate our
                                                               businesses, with less day-to-day regulatory oversight, more
Merry Christmas and Happy New Year! As your new                efficiency, and hopefully some profitability.
President for 2011 I accept the office with deep humility,
only hoping to approach Derrick Childers’ performance.         Another important issue for NMHBA and every local in
His expertise and efforts this past year will make my job      the state is declining membership. We’ve been fighting it
a lot easier next year. Also, my heartfelt thanks to Randy     for years and it’s still creeping down, down, down. I keep
Crowder for recruiting me for the leadership track two         hoping that things will bottom out and we’ll reach our core
years ago.                                                     membership - that solid number of builders and associates
                                                               that will be here come rain or shine, but we evidently have
I see this upcoming year as a mix of challenges and            not gotten there yet.
opportunities. First of all, we have to make sure we don’t
get bushwhacked on the fire sprinkler issue. As you know,      It’s my opinion that this organization was built with one-
we managed to kick the can down the road to 2013 as far        on-one recruiting and built on the business and personal
as CID adopting this in the building codes, but we can         relationships we operate within everyday - contractor/
expect some type of effort in the Legislature. This might      sub-contractor, customer/vendor, lender /borrower. Do you
originate from the State Fire Marshall’s office or from fire   have a plumber, a painter, an excavator working for you
sprinkler installers themselves, but we’re already prepping    who is not an HBA member? Go after these people - they
our own bills to counter this. This seems to be an endless     are tomorrow’s long-term members and they are the ones
fight - it started 3-4 years ago in Minneapolis when the       we can retain year after year! I’m a perfect example. I was
fire people packed the hall and got residential sprinklers     working as a carpentry sub-contractor in the late 90’s and
inserted into the code. These people just don’t give up -      John Cornelius said to me, “You belong in Homebuilders.
they are dead-set on imposing sprinkler requirements on        Come to the meeting tonight.” I have been here ever since!
single family housing, and they’re almost religious in their   This personalized recruiting is not something new - some
zeal. We cannot let down our guard on this issue. You          of you are old pros at it. You’re called “Spikes” and you
can help by talking to your customers about sprinklers,        built this association years ago. I’m now asking you to do
then documenting every negative response you get from          it again. Go after those Spike points. Find someone this
them. We need to prove that the public doesn’t want            month and drag them to a meeting; tell them about Builders
sprinklers forced on them. We can also expect some             Trust’s new low rates; tell them about ASC ‘s license
effort on the local scene. For example, in Ruidoso, the        bonding services; tell them about what we hope to do in the
building inspector has voiced his support for a sprinkler      legislature this year. Show them how HBA membership
requirement, basing it partially on Ruidoso’s interface with   can keep them informed on local, state and national issues
the national forest. You can expect the same from your         that affect their daily business. Tell them how membership
local fire officials, so watch things on the home front.       can keep them ahead of the game. (Just a personal aside,
With the change in governor, we have a new political
                                                                                                       Continued on page 10

                                                                    NMHBA Housing Journal/December 2010                      3
                                                             and inefficient. We believe our state law unnecessarily
                                                             restricts local code compliance departments, especially in
                                                             smaller communities. Between the law and Construction
                                                             Industries Division (CID) tradition, local departments
                                                             don’t have access to code compliance tools commonly
                                                             used by local governments throughout the western
                                                             states. As an example, NMHBA, in conjunction with
                                                             several local governments, has promoted the idea that
                                                             nearby local governments should share code compliance
                                                             services. CID began a “pilot” program for this several
    Jack C. Milarch, Jr.                                     years ago, but generally has dragged its feet and has not
                                                             made a good faith effort to allow this efficiency measure.

Major Change Needed In New                                   In light of all this NMHBA has prepared several bills
                                                             for introduction into the upcoming 60-day Session of
Mexico’s Code Compliance                                     the Legislature. We are working closely with local chief
Services                                                     building officials from around New Mexico on this
                                                             project.
The “changing of the guard” at the highest levels of state
government is always an interesting time around the          Bill Drafts Prepared And Presented to the Economic
association world, especially considering major change       and Rural Development Committee
at the top occurs on an eight-year cycle. Widespread         Representative Patty Lundstrom of McKinley/San Juan
budget woes have given rise to the call for ideas for more   Counties, along with Representative Bill Gray of Eddy/
efficiency in our government processes. For several          Otero Counties, agreed to co-sponsor a bill addressing
years NMHBA has been promoting a series of ideas             several of our issues. At the recent hearing of the
regarding our state and local code compliance activity       Economic & Rural Development Interim Committee I
that we believe will result in fewer delays, less cost for   presented the bill, which was supported by local chief
government, and higher quality services. The budget          building officials from around New Mexico. After a long
stresses, a new administration, and other developments       discussion the committee agreed to “endorse” the bill.
have combined to create a newfound interest in our ideas.    While much remains to be done, this is a good start.
We believe our efforts are addressing problems which
for many years have been the subject of statements like      (If you want copies of the bill drafts with a thumbnail
“Somebody should do something about that...”                 explanation, please contact Melanie at the NMHBA
                                                             office.)
Greater Flexibility and Better Efficiency in Code
Compliance Services                                          What these bills do:
Over the years one of the most frustrating problems we’ve      1. Create a requirement for the position of local Chief
dealt with revolves around contractor complaints that              Building Official (CBO) if a municipality/county
jobs are being held up, waiting for inspections. NMHBA             wants to (under existing law provisions) adopt
staff and volunteer leadership have been called to various         their own building codes and establish a building
New Mexico communities on a regular basis to help                  code compliance department. Current law does
contractors organize and pressure state (and sometimes             not establish clear authority and responsibility
local) inspectors to do their jobs in a more timely and            for a local CBO as the concept exists within our
organized manner. At one point we even worked with                 building codes.
(then) Senator Lee Rawson to get over a million dollars        2. Allow the CBO to utilize qualified inspectors
specifically for the state’s KIVA inspection scheduling            to do more than one type of inspection, such
and tracking program. We’ve studied the problem and                as a combination of plumbing and electrical
have come to the conclusion that the current methods               inspections. Most western states and their local
of state and local code compliance services are wasteful           jurisdictions follow this model for effective


4    NMHBA Housing Journal/December 2010
   and efficient code compliance activities. These           2. Make changes to the manner in which the state,
   concepts are fully supported by model code                   municipalities and counties currently adopt their
   organizations.                                               building codes.
3. Clarify that public building construction within          3. Mandate that municipalities or counties create their
   their jurisdiction may be permitted and inspected            own code compliance department or adopt their
   by the local CBO. CID currently claims most of               own building codes.
   this work for itself. This change will facilitate
   better local project coordination in planning,         Private Inspection Services
   zoning, etc. while also helping to fund and            Another tool for efficient and cost-effective code
   stabilize the local code compliance programs.          compliance efforts commonly used throughout the
4. Remove requirement for CID to certify the local        western states is private inspection services. This has
   CBO’s field inspectors and yet leave everything in     traditionally been available to CID Bureau Chiefs, but
   current law for CID to qualify and manage their        not for local code compliance programs. The concept is
   own inspector qualification processes.                 simply to allow the local program CBO to utilize qualified
5. Clarify the right of local governments to share        private inspection services if he/she should choose to do
   building code compliance resources through joint       so. We believe this is an important tool that completes
   agreements, thereby stabilizing and expanding          our package of changes. While the bills outlined above
   locally based capabilities.                            do not include a provision allowing this, we have drafted
                                                          an additional bill to allow it. We have been assured that
These bills do NOT:                                       Senator Clint Harden of Curry County will help us with
1. Contain provisions for “dismantling” or “sun-          this final effort.
   setting” the core functions of CID including
   contractor licensing, state code adoption, violation   Recently we sent a letter to the Local EOs and Presidents
   and dispute resolution and punishment, and             encouraging them to contact their local chief building
   functioning as the state’s default local code          official about this effort.
   compliance service.                                    .




                                                            NMHBA Housing Journal/December 2010                   5
    Feature Your Work on a Housing Journal Cover
NMHBA is looking for high-quality photos of your work
to feature on upcoming Housing Journal covers.

If you have a home or remodeled project that’s worthy
of notice, we want to help you show it off! Along with
exterior and interior room shots, we’ll also accept photos
of special features such as tile work, swimming pools,
fireplaces, porches, etc.

Specifications:
  - Vertical shot 8x10 or proportional
  - Actual photo or on a CD (300 dpi, jpg or tif at final
    size)
  - If the photo was professionally done, please obtain
    permission from the photographer.

You may deliver your photo(s) to our office anytime
during business hours. NMHBA will determine whether
or not the photo will be used. All photos will be returned
to you. Please contact Nancy Barron at 505-344-7072
with any questions.




6   NMHBA Housing Journal/December 2010
     Summary of Construction Industries Commission Meeting
Our construction industries’ rule making and disciplinary board met in November, and their agenda as distributed at the
meeting is reproduced here for you to see what business they dealt with. NMHBA comments on topics of interest are
included in italics.
------------------------------------------------------------------------------------------------------------------------------------
AGENDA

I.     Convene and Determination of Quorum

II.    Approval of Agenda

III.   Approval of the September 24, 2010 Regular Meeting Minutes

IV.    Date and Location of Next Meetings
       9:30 am, third Friday of every other month beginning January 21, 2011, RLD main conference room –
       Albuquerque

V.     Public Comment

VI.    Correspondence

VII.   Old Business

VIII. New Business
        A. Request Approval of Electrical Continuing Education Courses and Providers
                 - Rem Pacheco, Electrical Bureau Chief
        B.    Request Approval of Revised Effective Date for EL-1J Continuing Education Requirements
                 - Rem Pacheco
Effective date for EL-1J Continuing Education requirement was moved to July 1, 2011, due to a lack of courses for 600-
volt licensees.
        C.    Request Approval of Mechanical/Plumbing Continuing Education Courses and Providers
                 - Jerome Baca, Mechanical Bureau Chief
        D.    Request Approval to Proceed to Public Hearing – Jerome Baca
              a. 2009 edition of the Uniform Pool, Spa & Hot Tub Code as amended by NMAC 14.8.3
              New Mexico Pool, Spa & Hot Tub Code
              b. 2009 edition of the Uniform Solar Energy Code as amended by NMAC 14.9.6 New
                 Mexico Solar Energy Code
Both codes were approved to proceed to public hearing.
        E.    Compliance Matters – Maria Lopez
                 1.      Request approval to close
A long list of pending cases was closed by the Commission on staff request. If you had a case pending at CID, please call
Nancy at the NMHBA office for the full list which was presented to the Commission for dismissal.
                 2. Request Referral for Disciplinary Action
                 3. Appeal of Penalty Assessment
                         a. #10-1742 White Sands Contruction: John Frase, Atty for Contractor
                         b. #08-1074 JC Remodeling: Karen Aubrey, Atty for Contractor
                         c. License #82077 Vann Builders: Brian Vann, Contractor
                 4. Hearing Officers Report
                         a. #08-0995 First Choice Construction: Cholla Khoury, Asst Atty General
                 5. Presentation of Settlement Proposal
                                                                                                     Continued on page 8

                                                                          NMHBA Housing Journal/December 2010                          7
                         a. #08-1008 Global Structures: Cholla Khoury, AAG
                         b.     #08-1042 IES Commercial: Cholla Khoury, AAC

IX.    Executive Session Pursuant to NMSA 1978 10-15-1
                       a.     Review licenses issued in July, August, September and October, 2010
                       b.     Ferbie Corriz Jr and All Seasons Roofing, LLC v. Lisa Martinez, et.al.
                              Case #D0101-CV201003118

X.     Director’s Report
Lisa Martinez announced a training session on the 2009 codes will be held in December for inspectors; January or March
for contractors and another in July for contractors. The Local Government Inspection Task Force will schedule a meeting
to review the draft regulations for local inspection departments presented by the Municipal League.

Martinez reported the Economic & Rural Development Interim Committee met to discuss potential legislation regarding
CID inspections. She stated CID is completing all inspections within 48 hours of receiving a request, but that there is leg-
islation being drafted to remove CID from the inspection business. Martinez expressed concern that there was an attempt
to “dismantle” CID and provided the Commissioners with a list of legislators on the Interim Committee. She urged the
Commissioners to contact these legislators immediately to ask them to stop this action. (Editor’s note: NMHBA believes
these statements were not totally accurate.)

Martinez continued her report by listing some of CID’s accomplishments over the past eight years:
            - streamlined processes and avoided “business as usual” thinking when reviewing every aspect of
               providing services;
            - worked on 800 pieces of legislation and succeeded in passing the Consumer Protection Bond;
               repealed the CID Sunset Review provision, and established continuing education for journeymen;
            - doubled the budget, added 24 jobs and gave 90 pay raises;
            - established the Call Center for requesting inspections;
            - conducted investigations of contractors that have resulted in indictments on fraud charges;
            - joined with 12 other states to set up reciprocal agreements for electrical journeymen;
            - reduced rules and regulations by 25%.

XI.     Other Business




8     NMHBA Housing Journal/December 2010
                      Lobbying Tax Deduction for 2011
                         NAHB and NMHBA Dues
In 1993, the U.S. Congress enacted the Omnibus Budget Reconciliation Act that contained provisions
affecting trade associations. The Act provided that taxpayers will no longer be able to deduct from their
federal income taxes any portion of the association dues attributable to that association’s “lobbying activi-
ties” as an ordinary and necessary cost of doing business.

For 2011, NAHB estimates that the non-deductible portion of national dues—the portion that is applicable
to lobbying is 18%. Thus, for a member who pays their NAHB dues of $150.00 in 2011, 18% or $27.00
will not be eligible for deduction as a business expense. Similarly, for an affiliate member who pays their
NAHB dues of $5.00 in 2011, 18% or $.90 will not be eligible for deduction as a business expense.

For 2011, NMHBA estimates that the non-deductible portion of state dues—the portion that is applicable
to lobbying is 9%. Thus, for a member who pays their NMHBA dues of $110.00 in 2011, 9% or $9.90
will not be eligible for deduction as a business expense. Similarly, for an affiliate member who pays their
NMHBA dues of $40.00 in 2011, 9% or $3.60 will not be eligible for deduction as a business expense.

For additional information on NAHB lobbying tax deductions, contact Tracy Spatz at:
1-800-368-5242, ext. 8152.




                                                            NMHBA Housing Journal/December 2010                 9
Continued from page 3
I’m still grateful for NMHBA’s help with storm water          Spanish-to-English
training a few years ago. It saved my hide when EPA
showed up on my site six months later.) This is stuff that    Language Binders Available
people need - good hard information, practical and timely.
                                                              NMHBA has a limited supply of English In-A-
                                                              Pinch binders to help builders and their employees
My point is that the future of NMHBA does not begin
                                                              conquer the language barrier at the job site. The
in Albuquerque. It does not even begin with the Locals,
                                                              3-ring binder contains hundreds of construction-
but with each and every individual member. What each
                                                              related terms, commands, and phrases in both
member does in the next few years will flow upward.
                                                              English and Spanish.
Every dollar that finances our legislative efforts, our
                                                              The Spanish-to-English binders (for those who
services such as Builders Trust and ASC, our information
and education efforts, our legislative agenda, starts with
each individual member. Every bit of talent that sits
on the Government Affairs Committee, the Building
Issues Committee, the Finance Committee, every Senior
Officer, starts out as the individual joining the Local. We
are totally dependent on that individual. That person is
the bedrock of NMHBA - its past, present and future.
Without that one individual, nothing is possible. Without
him or her, we have no future. So go out there and find
this person, bring this new member into the HBA, or if a
former member, welcome them back! This is what we
                                                              speak Spanish) are for sale at $60 each. Please
need and this will ensure our future!
                                                              contact Melinda at 505-344-7072 if you would like
                                                              to purchase one.
Let’s have a great 2011!




10     NMHBA Housing Journal/December 2010
  NM Residential Building Permits – Now and Then
                    (YTD through October 2010, October 2009, October 2008,
                               October 2007, & October 2006)
County                   2010              2009                 2008                2007             2006

New Mexico -             744               749                  817                 1316             1558
Balance of State*

Bernalillo County        813               773                  1143                2271             3398
Chaves County            20                20                   36                  48               59
Colfax County            12                4                    13                  34               57
Curry County             133               155                  102                 126              233
Dona Ana County          679               701                  735                 1175             1800
Eddy County              71                65                   99                  92               70
Lea County               16                16                   84                  97               49
Lincoln County           48                51                   85                  150              194
Los Alamos County        3                 1                    5                   21               49
Luna County              23                26                   41                  68               90
McKinley County          2                 1                    9                   27               23
Otero County             2                 3                    65                  143              172
Rio Arriba County        3                 0                    0                   6                8
Roosevelt County         48                34                   28                  27               28
Sandoval County          462               456                  620                 971              1057
San Juan County          180               174                  248                 345              383
Santa Fe County          90                85                   128                 254              372
Sierra County            1                 1                    3                   3                2
Socorro County           3                 4                    10                  14               22
Taos County              55                62                   107                 175              247
Valencia County          76                73                   90                  181              263

Total                    3484              3454                 4468                7544             10134

* Includes the following counties: Catron, Cibola, De Baca, Grant, Guadalupe, Harding, Hidalgo, Mora, Quay,
San Miguel, Torrance, and Union

Source: U.S. Census Bureau




                                                                NMHBA Housing Journal/December 2010           11
                2010/2011 NMHBA
                 Meeting Calendar
     December
     24 Christmas Eve – NMHBA/BT offices closed
     31 New Year’s Eve – NMHBA/BT offices closed

     January 2011
     12-15 NAHB International Builders’ Show -
           Orlando
     18    60-day Legislative Session begins




        Advertise in the Journal!
The official publication of the New Mexico Home
Builders Association, the Housing Journal has been
published for over 30 years and is sent to more than 2,300
members across the state.

Advertising in the Housing Journal is an incredible value
for reaching such a select market.

         Black & White
          Quarter Page          $85
          Half Page             $125
          Full Page             $215

         Color
          Quarter Page          $200
          Half Page             $350
          Full Page             $600

         Stuffer                $250
         (copies provided by you)

If you have any questions, please contact Nancy Barron at
505-344-7072 or toll-free in New Mexico at
800-523-8421.

12      NMHBA Housing Journal/December 2010
 New Mexico Home Builders Association                                                 PRESORTED STD
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                              dba                      • Notary
                                                       • Manufactured Housing
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                                                       • NM MVD Title
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                                                       5931 Office NE, Albuquerque, NM 87109
                                                        Toll Free in New Mexico: 800.523.8421
                                                                 Phone: 505.344.7277
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