Volume 46 Issue 8 October 2016 "Like Us" on Facebook

Construction Contractor-Related Complaints How to Sell When Green Doesn’t Mean “Go” Articulating Cap Sill Best Window & Door Product

Official Publication of the New Mexico Home Builders Association

New Mexico Home Builders Association 505-344-7072, Toll Free 1-800-523-8421 FAX: 505-344-3103 E-mail: [email protected] or Website: www.nmhba.org

NMHBA Office Staff Special Features

Executive VP & CEO, Jack C. Milarch, Jr. 6 Construction Contractor-Related Governmental Affairs Director, Melanie Lawton Complaints Bookkeeper/Bonding/Meeting Admin, Melinda Bolivar 8 How to Sell When Green Doesn’t NMHBA 2016 Senior Officers Mean “Go” President, Pat Bellestri-Martinez Past President, Skip Mead 11 Articulating Cap Sill Best Window 1st VP/President Elect, Steve Hale Associate Vice President, Diana Lucero & Door Product Secretary Treasurer, Brian McCarthy 2016 Local HBA Presidents

HBA of Central New Mexico, Jamie Rayne Regular Features South Eastern New Mexico HBA, Mike Richards HBA of Eastern New Mexico, Andy Cordova 2 Membership Statistics Las Cruces HBA, Mike Fraembs Lincoln County HBA, Corey Tillman 2 Calendar San Juan County HBA, David Valencia Santa Fe Area HBA, Teri Buhl 3 Message from the President - BCA of Otero County, Dusty Wright Southwest NM HBA, Rich Bigelow Committees of NMHBA NAHB Representatives 4 Message from the Executive Vice President and CEO - Thank You Pat National Associate Director, Diana Lucero Casey State Representative, Peter Merrill National Director, Pat Bellestri-Martinez NAHB BUILD-PAC Trustee, Skip Mead Affiliated Organizations

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2016 NMHBA Meeting Calendar

November 4 Sr. Officers/Executive Committee @AOC Government Affairs Committee@ AOC Building Issues Committee @ AOC Installation Dinner @ Albuquerque Marriott 5 Board Meeting @ Albuquerque Marriott (on Louisiana) NMHBA Annual Meeting of the Members 11 Veterans Day – NMHBA & BT Offices Closed 24-25 Thanksgiving Holiday – NMHBA & BT Offices Closed

December 2 Sr. Officers/Executive Committee @AOC 26 Christmas Holiday – NMHBA & BT Offices Closed

2 NMHBA Housing Journal/October 2016 Committees of NMHBA Thinking back to the early days of our business’s involvement with the New Mexico Home Builders Association, I can recall the draw. Mario (my partner) came back from attending a Technical Advisory Committee meeting (now called the Building Issues Committee). He was so pumped up about the discussion at the meeting. Jim Beverly was chair at the time. Mario stated his desire to be able to serve on that committee. He knew the information that came out of the meetings would benefit him and benefit our business. He did eventually become a member of that committee as well as President of the NMHBA in 2002. And, yes, the information, the networking, the contacts served us well for all these years. That bug bit me also. Being able to learn and grow at the same time being of service to our industry is of such value that cannot be substituted by any other activity in your business. Pat Bellestri-Martinez This is an invitation for you to consider participating in one of our standing committees in 2017. We will have sign up sheets at the November Board Meeting. As well, you may send your request into the NMHBA office via email or phone. The President appoints committee members. Steve Hale, your 2017 President will have the task of making those appointments.

The 2017 Committees are the Government Affairs Committee, the Building Issues Committee and the Finance Committee.

As the title implies the Government Affairs Committee has the job of identifying and studying all issues that involve our Government, both on a statewide and a national level. The legislative issues are part of our businesses on a daily basis and must be constantly monitored and acted upon. One of the most important jobs NMHBA does is represent us at the Legislature. We depend on our members who participate on this committee to keep us abreast of what is important in doing business in our local communities. The Government Affairs Committee examines, reports and makes recommendations on local, state and national legislation affecting the home building industry. The Committee is also responsible for drafting issues statements for the Association to be submitted for Board approval. Tentative meeting dates for 2017 are Feb. 10, May 12, July 14, Sept. 15 and Nov. 17.

The Building Issues Committee is the group that deals with issues of building homes -- the nuts & bolts of construction. Participating on this committee gives you cutting edge information about construction and codes. The BIC Committee works closely with the New Mexico Construction Industries Division (CID) to advise them of the industry’s views on matters pertaining to licensing and code enforcement and to assist in developing code amendments and regulations. The Committee’s priorities are the industry’s various technical construction issues such as moisture intrusion, energy conservation measures, septic tank regulations and other building science concerns. Tentative meeting dates for 2017 are Feb. 10, May 12, July 14, Sept. 15, and Nov. 17.

The Finance Committee makes recommendations to the Executive/Senior Board regarding the Association’s annual budget, financial investments and financial audits. The NMHBA President and Secretary-Treasurer are ex-officio voting members of the Finance Committee. Tentative meeting dates for 2017 are Sept. 1, Sept. 14, and Nov. 16.

The meetings are held in Albuquerque. However, we have been using Zoom this year with success. This means you can participate in the meeting from your computer in your hometown.

Committee meetings are a great opportunity to network with industry members from around the state. Take advantage of this opportunity.

Salud This is my 10th and last article for the Housing Journal. As my term as President comes to an end I want to thank you for being a member of your builders association – your local, state and national association. Yes, you get three memberships for the price of one. I know that your businesses need your undivided attention, but do consider what you will gain by stepping away from your business and being involved with your Association. You can do so by attending luncheons, dinners, special events, Networking functions, serving on your local board, coming to Albuquerque for a State Board meeting, voting, or just making sure you do business with a member.

It has been an honor to serve as your President. I have gained much more than I have given. I will continue to serve on the Senior board through 2017 as Past President.

NMHBA Housing Journal/October 2016 3 Thank You Pat Casey!

Former NMHBA President and long-time Silver City builder Pat Casey was recently replaced as the Construction Industries Commissioner serving in the “Representative of the Residential Construction Industry” seat. Pat has served the industry as a voting Commissioner since shortly after Governor Martinez was elected in 2010.

The Construction Industries Commission is tasked with creating rules, adopting building codes, and dealing with consumer complaints against contractors. The nine Commissioners and their work are a very important part of life as a contractor in New Mexico. Jack C. Milarch, Jr. Any of us who ever worked with Pat Casey know that he is always willing to study extensively and practically memorizes dense documentation in order to understand any issue on which he will be voting. This trait, combined with Pat’s extensive construction experience served the Commission, and the industry, very well during Pat’s time on the Commission. Pat was always ready to cite a relevant reference and to serve as the conscience of the Commission in their dealings with contractors and property owners.

Pat often served as a judge on cases around New Mexico when CID charged contractors with violating their law and rules, handing out punishments or dismissing cases according to his deep understanding of the building codes, and his strong sense of fairness.

Pat undertook the job of serving as a Commissioner very seriously, and we at NMHBA who also understand the importance of this position will definitely miss him.

The seat vacated by Pat Casey was filled by Governor Martinez when she appointed another former NMHBA President, Rick Davis of Albuquerque. Other seats on the Commission are filled by Governor’s appointees representing General Contractors (Ken Wooten), Mechanical Contractors (Dale Armstrong), Subcontracting Industry (Don Kaufman), Electrical Contractors (Randy Baker), Architects (Glenn Fellows), the LP Gas Industry (Lisa Fickling), Organized Labor (Vince Alvarado), and one seat representing the People of New Mexico (Renee Edwards). All Commissioners serve “at the pleasure of the Governor”.

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NMHBA Housing Journal/October 2016 5 Construction Contractor-Related Complaints

By Jack Milarch

The topic of complaints about the work of contractors is back in the wind around New Mexico and NMHBA. News about complaints and how complaints are being handled seems to wax and wane, often as the local media finds a story to air. As contractors go about their work we believe we need to be aware of what is going on, and this article will be a snapshot of what has happened recently.

First, let’s begin with some news of what our official industry regulator, the Construction Industries Division (CID) and Commission, are doing in regard to complaints about contractors. CID and the Commission have struggled with what to do about consumer complaints for as long as they have been in the regulation business. The last big news was when CID went to the Legislature and succeeded in getting a code bond requirement for all licensed contractors. It has cost the industry millions of dollars over the years. Is it worth it? Who benefits? The new code bond was supposed to give CID “something for the owners”, to help the them pay for repair of code violations. It hasn’t really worked out that way.

For a whole variety of reasons, CID has seldom been able to get through their investigation and hearing processes in time for homeowners to make a bond claim within the two-year limitation allowed by law and the bond. As we understand from the carrier who holds a big share of our New Mexico contractor license bonds, there are only a handful of successful claims every year, as contrasted to hundreds of filed complaints. As you can imagine, this dynamic has created a lot of frustration with homeowners who feel they have first been wronged by a contractor, then wronged again by a government system that hasn’t been able to function fast enough for them to make a claim.

CID appears to be changing the way they deal with errant contractors. They are apparently beginning a new practice whereby contractors are encouraged to make cash payments directly to homeowners as a part of the complaint resolution process. At least one CIC Commissioner was reportedly very concerned about this tactic, fearing the heavy hammer of CID’s “encouragement” of contractors to make such payments to homeowners in order to keep their licenses would get out of hand. The September Commission meeting agenda shows CIC and their attorneys addressed over 70 contractors’ complaint cases in closed session. However, since the public is not allowed into the meetings during the time of dealing with contractor complaints, details of the actual adjudication process are unknown.

The next topic is complaints about contractors that are made to the NM Attorney General’s Office (AGO). These complaints are usually about something besides code compliance issues, and may deal with contract disputes, failure to complete projects, missing “deposit” money, and lien-related problems. Once again, the AGO has accumulated a reputation over the past decade for not doing a good job at dealing with such things in a timely manner. The AGO has a Consumer Protection Division, which is where these complaints seem to get routed, but that group is reportedly chronically understaffed and busy with such things as phone solicitation scams, foreclosure issues, and complaints against vehicle sellers. Their shortcomings in regard to contractor-related complaints have recently come to the attention of NM AG Hector Balderas who recently hired someone we know well – Edgewood contractor, former mayor, and longtime NMHBA member Brad Hill – to help sort out the problems. AG Balderas and Brad Hill attended an NMHBA Government Affairs Committee meeting last month to tell us what they plan to do differently now, and ask us for our opinion on how

6 NMHBA Housing Journal/October 2016 October 2016

they can better serve us and the public. By all accounts the AG’s office is under significant pressure to do a better job of handling complaints against contractors. Brad Hill plans to attend a future meeting of the Governmental Affairs Committee to give an updated report on what he is doing in this regard.

And finally, there is news of a new law firm in the Builder - Panorama Homes Albuquerque area that advertises their specialty is plaintiff work with regard to construction-related problems. Their web site shows they have been active in other western states, filing class action-type lawsuits alleging problems and seeking damages on hundreds of homes in various IT’S EASY TO BE GREEN! subdivisions. Law firms of this type have been active Give your clients what they want... for years, and their tactics are well known by warranty a home that is comfortable, carriers and HBAs in the impacted areas. Some of energy efficient and healthy! the construction-related problems this particular firm advertises expertise in are:

• Dezincification of Yellow Brass GREEN TIP • Roof Systems • Windows & Doors OF THE MONTH • Stucco • Plumbing & Electrical  • Concrete January 1st 2017 Restarts the • Water Damage • Mold New Mexico Sustainability • Structural Components Building Tax Credit • Balconies & Decks If you are certifying a home under the new (Since 2015) • Soil Movement Build Green NM program and are at the Silver level • Sulfate Attack or above, your home will likely qualify for the New

Sustainable Building Tax Credit. This new tax credit will run through 2026 and offers a tax credit of $3 / sq ft or The Housing Journal will keep you posted on the various more for up to 2,000 sq ft. Projects may be certified issues in flux with regard to complaints against contractors now but cannot be submitted to the State of NM before in New Mexico. January 1, 2017. To find out the specifics contact Build Green NM and check this link to NM Energy and Minerals for all the information. http://www.emnrd.state.nm.us/ECMD/ CleanEnergyTaxIncentives/SBTC.html JUST A NOTE TO ALL MEMBERS... Contact us Today: Build Green New Mexico Steve Hale: Certifying the Green & Sustainable Make sure your Local HBA has your correct Program Director homes from Builders & Remodelers (505) 688 – 5335 across the State of New Mexico contact information (including address, phone [email protected] number, and email address). NAHB and www.BGNM.com NMHBA, as well as your Local HBA, use this info to send you information that could be important for your business.

NMHBA Housing Journal/October 2016 7 Review: 2016 IBS Educational Program How to Sell When Green Doesn’t Mean “Go” If you paid for a Full Registration to the 2016 International Builders Show in Las Vegas, you are entitled to replay the entire 120+ educational seminars presented for FREE. You should have received an email around February 17th from Mobiltape Company with subscription information for you to access these recordings. The handouts from this presentation are available on the IBS website at http://www.buildersshow.com/Search/EducationEvents.aspx.

NMHBA staff replayed How to Sell When Green Doesn’t Mean “Go” presented by Craig Foley of RE/MAX in Somerville, MA, Rose Quint of NAHB, and Amanda Stinton, National Association of Realtors from Chicago, IL. While the presentation was aimed at real estate agents, there is information here that will help both those selling a client on the idea of a green-built custom home or a green remodel project as well. While the terms of “Green,” “Sustainable,” and “High Performance” may convey a value understood by those building these types of projects, it’s hard to get these terms to resonate with buyers. This presentation can give you a few tips to help the process.

A lot of selling “Green” to consumers is based upon the feelings of consumers. You need to know what features the client is most likely to feel provides the most benefit or value. Knowing what features will influence their purchase decision and what attributes matter most will help you sell your product.

To help builders get a handle on these issues, NAHB conducted an in-depth survey of consumer attitudes, the full results of which are available for purchase as “What Green Means to Home Buyers: Perceptions and Preferences” – Item No. 00304 at builderbooks.com – $79.95 for NAHB members.

NAHB’s survey revealed that 64% of home buyers felt energy efficiency was most important, then “durable/resilient” as second, and “healthy indoor living” a close third. Buyers didn’t feel water efficiency, efficient use of natural resources, reduced carbon footprint or lower impact development were very important.

Part of the problem is really a matter of the jargon that those “in the green” tend to use. While most of those involved in the movement understand what others mean when they use “green jargon” sometimes the general public is unsure, and afraid to tell the realtor or builder they don’t understand. To help builders get around this, the NAHB survey suggested the “preferred” words that those selling “green” or “high performance” homes should use to best relate to the general public.

Use: Instead of: Comfortable Livable Water saving features Low-flow water features Environmentally friendly Green conscious Low-maintenance Reduced upkeep High quality construction Advance construction practices Energy efficient High efficiency Universal design Aging-in-place Independently inspected Third-party inspected Functional living spaces Inspired design Eco-friendly Green home Environmentally conscious Low impact Lower utility bills Reduced energy use Ventilation Pollution control

8 NMHBA Housing Journal/October 2016 Use: Instead of: Facilitates healthy lifestyle Facilitates well-being Healthy living environment Non-toxic materials Whole house approach House as a system Smart design Innovative design Reduces my environmental footprint Helps save the planet Built above code Built to rigorous standards High performance Optimized performance Environmentally responsible Sustainable lifestyle Locally sourced materials Built with recycled materials

There was no statistically significant difference in benefit or value feelings from clients when choosing between Health/Comfort, Disaster resistant/Resilient, Resource efficient/Zero waste or Net Zero energy/Carbon neutral.

Marketing your products as being in a safe community & energy efficient are items that influence 88-90% of buyers. Energy efficiency was the housing concern with the largest gap between the rates of importance and satisfaction – beating out consumer needs and wants for updated kitchens, storage space, safe neighborhoods, affordability, and more.

According to the real estate experts, the recurring concerns of home buyers are: 1. Cost Savings – 84% want efficient heating & cooling; 67% want efficient appliances and lighting. 2. Control – Many consumers feel Smart Home devices give them more control over their homes and their own security. 3. Comfort – 76% of home buyers identified comfort (in terms of even temperature and quiet rooms) as very important.

The overall message from all three experts was that as builders/realtors/remodelers, you need to know how to talk to your potential clients. You need to work to sell the benefits of High Performance/Green homes and remodel projects and guide your buyers through the jargon to be sure the terms you are using clearly convey the feeling of value for the product you are providing.

In addition to being available for free online viewing, this presentation is also available from www.mobiltape. com for $22 per CD plus $3 shipping & handling. A PDF of the handouts (slides) may also be obtained from the NMHBA office by contacting Melanie Lawton by email: [email protected].

NMHBA Housing Journal/October 2016 9 PAID ADVERTISEMENT New Mexico Homebuilders Politcal Action Fund We occasionally get requests asking which candidates have been supported by the NMHB Political Action Fund contributions. Our NMHB PAF has made a number of contributions to various candidates for office during this election cycle. We want you to know who we supported.

NMHB PAF is largely funded by the $20 dues check-off printed on your annual local home builders association membership statement. This solicitation accumulates modest amounts of money and allows us to participate in the election cycle. Whether or not you agree with our various selections we hope you agree with us that participation in the election process is important to the continued success of our industry and to your business.

Please continue to “check off” that $20 for NMHB PAF.

NMHB PAF Trustees: Mike Buechter, Chair  Lee Rawson, Vice-Chair  Jack Milarch, Secretary Treasurer Ray Gee, Trustee  Randy Crowder, Trustee

BCA OF OTERO COUNTY SAN JUAN COUNTY HBA Rick Little (R) – Chaparral Sharon Clachchischilliage (R) – Kirtland William Sharer (R) – Farmington EASTERN NEW MEXICO HBA Stuart Ingle (R) – Portales SANTA FE AREA HBA Debbie Rodella (D) – Espanola HBA OF CENTRAL NEW MEXICO Ted Barela (R) – Estancia Sara Maestas-Barnes (R) – Albuquerque Sharon Stover (R) – Los Alamos Paul Pacheco (R) – Albuquerque Carl Trujillo (D) – Santa Fe Christina Hall (R) – Albuquerque Peter Wirth (D) – Santa Fe Nate Gentry (R) – Albuquerque Candace Gould (R) – Albuquerque SOUTH WEST NEW MEXICO HBA Mimi Stewart (D) – Albuquerque Rebecca Dow (R) – T or C Lisa Torraco (R) – Albuquerque Gregory Baca (R) – Belen Kelly Fajardo (R) – Belen Alonzo Baldonado (R) – Los Lunas Diego Espinoza (R) - Rio Rancho

LAS CRUCES HBA Vickie Chavez (R) – Deming Absentee Voting Andy Nuñez (R) – Hatch  Lee Cotter (R) – Las Cruces Ceil Levatino (R) – Las Cruces Begins Oct. 11th Terry McMillan (R) – Las Cruces Mary Kay Papen (D) – Las Cruces  Early Voting Begins Oct. 22nd

10 NMHBA Housing Journal/October 2016 2016 IBS Product Profile Articulating Cap Sill Best Window & Door Product

During the 2016 International Builders Show close to 300 entries in nine categories were received in the 2016 Best of IBS Awards. 27 industry and media judges considered a lengthy list of criteria in order to select the 2016 finalists and winners. The Z-Articulating Cap Sill (Z-AC) from Endura Products was selected as the Best Window & Door Product.

According to Endura Products, the Z-AC can solve door problems before they start because the sill features a built-in gasket that seals out water with no caulk necessary. They also claim the Z-AC never needs adjustment because its articulating cap has a “living hinge” and redundant spring assemblies that compensates along the width of the opening to overcome variations in margins between the door and the sill. The Z-AC also solves problems where there is no corner pad or trouble in the strike zone.

The IBS Judges commented “This could save contractors significant money by reducing call-backs and customer complaints” and “Best new product designed to resolve many door sill problems. For both new and existing problems, Z-AC is very affordable and innovative.”

You can ask your door supplier to install the Z-AC on pre-hung doors you order for about $6-12 more, or you can order retrofit kits from around $20 (single opening) to $40 (double opening). Products may be ordered from Endura athttp:// www.enduraproducts.com/ or by phone at 800-334-2006.

NMHBA Housing Journal/October 2016 11 New Mexico Homebuilders Politcal Action Fund Percentages of New & Renewing NMHBA Members Who Contributed to NMHB Political Action Fund December 1- August 31, 2016: $ from each HBA % of Contributions to PAF BCA of Otero County $ 1,380.00 82% HBA of Eastern NM $ 1,060.00 79% HBA of Central NM $ 4,940.00 46% Las Cruces HBA $ 980.00 21% Lincoln County HBA $ 460.00 36% San Juan County HBA $ 600.00 21% Santa Fe Area HBA $ 240.00 4% Southwest NMHBA $ 20.00 0% Southeastern NMHBA $ 950.00 74% TOTAL $ / AVERAGE % $10,630.00 40%

The successes in getting the reduction in Gross Receipts Tax passed in 2012 and the workers’ comp bill passed in 2015 were largely due to the relationships NMHBA has developed with legislators over the past 10-15 years. Key to opening the door to start a dialog with legislators is the ability to make campaign contributions from NMHB PAF. PAF raises funds primarily through the annual “dues check-off” process on membership renewals. It is a voluntary $20 added onto the membership fees and billed by your local HBA on your annual dues renewal.

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