Builders Outlook 2013 Issue 1

www.elpasobuilders.com www.epbuilders.org

Builders

utlook

2013 issue 1

2013: Housing remains on growth track, challenges still loom above

U

pward trends in recent months among a number of housing indicators point to a slow and steady growth in the nation’s housing market in 2013, but several challenges remain, according to the latest economic and housing forecast by David Crowe, chief economist for the National Association of Home Builders (NAHB).

“Consistent, positive reports on housing starts, permits, prices, newhome sales and builder confidence in recent months provide further confirmation that a gradual but steady housing recovery is underway across much of the nation,” said Crowe. “However, stubbornly tight lending standards for home buyers

and builders, inaccurate appraisals and proposals by policymakers to tamper with the mortgage interest deduction could dampen future housing demand.”

Stating there is no consistent national trend, Crowe noted the housing recovery is local but spreading.

“We are transitioning from a very low demand level, where most people hold themselves out of the marketplace, to a case where supply will start being the problem,” he said.

“As we begin to build more homes to address that supply, the new home stock will be a much more important element of the recovery.”

Setting the 2000-2002 period as a baseline benchmark for normal

Builders head for Austin

housing activity, Crowe said that owner-occupied remodeling has returned to previously normal levels.

“Multifamily production is also well on its way, back to 69 percent of normal,” he said. “It’s the singlefamily market that has the farthest to go, standing at only 40 percent of what is considered a typical market.”

Meanwhile, the number of improving housing markets across the nation continues to show considerable advancement. When the NAHB/First American Improving Markets Index (IMI) was launched in September of 2011, only 12 metropolitan areas out of 360 were on the list. As of December 2012, the list stands at more than 200 metro areas. The index is based on a sixmonth upswing in housing permits, employment and house prices.

“One reason we have seen such a significant jump in the IMI is because house prices are beginning to recover,” said Crowe. “House prices bottomed out early in 2011 and since early 2012 we’ve seen a 6 percent increase on a national basis.”

Another factor spurring the recovery is that household formations are on the rise. In the early part of the decade, the nation was generating 1.4 million new households each year.

This collapsed to 500,000 annually during the housing downturn and currently new households are being formed at close to a 900,000 clip per annum.

“We’re not up to normal, but this is

Rally Day is the best way for members to familiarize themselves with the issues that face the residential construction industry and, more importantly, deliver our legislative agenda straight to the doorstep of our legislators. This is also a great way to build relationships with legislators and network with other members within the association. Rally Day is the perfect event for new members to attend and see firsthand what TAB does for them and their businesses as well as how your government relations team advocates on behalf of the home building industry at the Capitol.

adding to demand for housing,” Crowe said.

As new households form at a growing rate, so too does builder confidence. The NAHB/Wells Fargo Housing Market Index, which measures builder confidence in the single-family housing market, has posted gains for eight consecutive months and now stands at a level of 47. This is very close to the critical midpoint of 50, where equal numbers of builders view the market as good or bad. The HMI has not been above 50 since April of 2006.

Single-family home starts are projected to climb to 534,000 units this year, up 23 percent from 2011.

NAHB is forecasting that singlefamily new-home production will post a healthy 21 percent gain in 2013 to 647,000 units. Starts will continue their upward climb in 2014, posting a further 29 percent rise to 837,000 units.

Multifamily production is expected to rise 31 percent in 2012, reaching the 233,000 level, and posting a solid 16 percent gain in 2013 to 270,000 units. Multifamily starts are anticipated to rise an additional 9 percent in 2014 to 294,000 units.

Meanwhile, new single-family home sales are expected to rise from 307,000 last year to 367,000 this year, a 20 percent rise. Sales are anticipated to climb to 447,000 next year, up 22 percent from 2012 and jump to 607,000 in 2014, a 36 percent increase over 2013 levels.

As in years past, we will have an address from an elected official and a legislative update on the South Steps of the Capitol. This year, lunch will be on your own in between your Capitol visits.

We will wrap up the day’s festivities and join us for a legislative reception at the historic Driskill Hotel.

Your support is needed to protect our entire industry, and TAB asks that you and your local association make the commitment to travel to Austin on Wednesday, February 20 for Rally Day 2013. We look forward to you being a part of this special—and effective— legislative event.

If you have any questions about Rally Day 2013, please feel free to contact the office at (915) 778-5387

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President’s Message | Edmundo Dena

El Paso Disposal

President, El Paso Association of Builders

Since this is my first official article as president I want to let you know how much I appreciate your support and would like to thank all of those who attended the installation. It was a really nice event that had a lot class and some genuine good times. I especially want to thank our sponsors once again as without them the association couldn’t put an event like this on. The installation committee did a great job as well so my hats off to Lorraine Huit and her fine group of ladies: Kathy Carrillo, Kathy Rose, Margaret Adauto, Kathy Parry and my wife Claudia. Thanks for welcoming us like you did.

The business at hand starts this month with our Spring Home Show. My thanks to those of you who are displaying your products and services at this show. It looks to be another success from the numbers and of course the public loves this event. I will be leading our delegation to Las Vegas for the International Builders Show later this month and I am aware that several of you will also be attending. It’s good to have it close by and in such a fun city.

Now, let’s get to why I’m writing this article. I want to remind you of that great US Army ad where they challenge you to “be ALL you Can be!” I want to do the same with you, and remind you that your membership needs to be a full value membership. What I mean is that if you are a member in name only then you are missing 99% of what your membership can and should be. Why would anyone look at this opportunity and not take advantage of what it offers?

Simply put it’s up to you. We have a lot of opportunities for you to take advantage of; sometimes it’s simple like coming to meetings. Other times it takes a little effort, especially when we ask you to invest your business in our association. This year my challenge to you is to do exactly that, Be All You Can Be. You will find it rewarding and you will benefit beyond your expectations. It might be your way to make new contacts, build your business or find a better way to do business. You will find out ONLY if you accept the challenge. You benefit and our association benefits. That’s a beautiful combination and one that we all know is what you want. And it’s one we need in order to succeed.

See you soon. Happy New Year.

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Perspective

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Ray Adauto, Executive Vice President EPAB An organization like ours is simply here because we have members and supporters that pay for us. Without our members and support groups we wouldn’t exist. Like any volunteer organization getting through the last months of a calendar year are often the most difficult in terms of income yet nothing changes when it comes to having to pay to stay open. Like so many small businesses it’s a struggle that no one in management looks forward to or is fully prepared for.

In retail you hear about black Friday, yet few understand the real meaning of that term. To most it’s the day that sales for stuff start and it’s when you go out and find that super-duper deal on electronics, clothing, or just about anything else you can buy. Yet to the retailer all the way back to the manufacturer black Friday is the day that signifies finally earning income, that is, your business is in “the black”. So here you have two of retails strangest events happening depending on what side of the counter you lie in. Buying a “bargain” or staying in business all dressed up in some dance of death, a spiral that can spin you to bankruptcy no matter where you stand. For associations like ours we have a regular “black Friday” every week when we try to figure out exactly how much we money we have to operate with and how much we need to pay out. I can tell you that regardless of how much planning you do something is

New Year brings new challenges bound to mess with the plan. Executive Officers across the land recognize this and like all adrenaline junkies I suppose we look for the thrill of getting through the cycle. Most survive but others may not be as fortunate. Our economy still has some big obstacles to overcome and it will be interesting to see what the new Congress will do to help. We just don’t need them to hurt us anymore.

As I opened the doors on January 2, I asked myself what it would take to ensure we are here next January.

It isn’t something I do alone as I have an excellent executive committee that helps plan and then implement the plan. But it takes more than just the six of us to bring the plan to reality and it starts with you as a member or supporter.

First and foremost we ask that you keep your membership and that you view it as an important part of your business plan.

Secondly we ask that you make plans to advertise or sponsor in an event or publication. Third is that you do business with a member so that together we can see a prosperous 2013. Perhaps if we use discretion as to where and with whom we spend our money it could go better for all of us.

The fact is that during these last few years we cut back on many items including personnel. Sometimes those cuts have been too close to the bone and lack of staff creates its own problems.

Doing more with less has taken its toll. I am guilty of that and understand the need to adjust in order to try a financial comeback.

In the next few months I expect that you will see a new face or two coming to visit you representing us. We began that transformation late last year when we brought in a third party sales team to sell our ads in the member directory.

We will continue that partnership and look for more opportunities this year. If you have ideas for us please bring them forward. I need to hear them and try to figure a way to put them to use.

We are looking at an ambitious event schedule and it starts with the Spring Home Show this January 18-20 at the Williams Convention Center downtown.

This event brings out people from the area to visit with and buy services and product.

Why wouldn’t you want to be there, right?

Our next event will be a spring tour of homes, followed by our first golf outing and then more events to enhance both your experience and our bottom line.

So hello 2013. Let’s all find a way to make this year as prosperous as we can.

Afterall it’s about the ability to open that door again in 2014.

Reserve your advertising space in the next edition of Your New Home/Su Casa Nueva The most complete home buying guide in both English & Spanish • Unmatched distribution and circulation • Unique dual language layout • Great advertising opportunity Call Margaret today at 778-5387

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The Economy

Builders & Buyers Bypass Budget Bullet Editor’s note: We’d like to welcome Economist Elliot Eisenberg as a regular contributor to the Builders Outlook.

His wealth of experience on housing has been the model for HBA’s across the country over the past decade. Now in private practice Dr. Eisenberg will bring his talent every month as a special contributor to the Outlook.

The mortgage interest deduction (MID) cost the US Treasury $88.8 billion in 2011, making it the second largest tax break for individuals. That is precisely why the Congress has its sights set on it. However, there is much debate about Elliot Eisenberg how to reduce its costs to the Treasury and by how much.

No matter what happens, reducing the MID will lower some house prices. That being said, how the Congress reduces the MID will determine how much how many houses lose value. And since so many of us own a home, sell homes or build homes, the MID will not be singled out for special treatment. Rather, the Congress will cap or phase out the value of all deductions, and in that way avoid favoring one deduction over another.

While there are several possible approaches, based on White House and Senate details of their last-minute deal to avert the fiscal cliff, the most likely one phases out itemized deductions for households with incomes over $300,000. While at first blush this may appear to be quite damaging, I think homeowners, realtors, builders, and the entire housing industry have all dodged a bullet and should sleep well for quite a while, or at least until the Congress reopens debate on the tax code sometime in the future.

Phasing out Schedule A deductions for couples with incomes over $300,000 limits the impact to buyers of only the most expensive houses. For example, with a 10% downpayment on a $1,500,000 house, mortgage

interest would be $54,000/year, property taxes would average $16,500, and insurance would be about $8,000, totaling $78,500 in annual housing-related expenses. To finance that mortgage, the $78,500 should ideally not be more than 30% of gross income, which means qualifying requires having an annual income of roughly $260,000; comfortably below the income level at which deductions start phasing out.

That being said, how much will a house valued at $2,000,000 decline? By very little!

In theory it will fall by the one-time lump-sum amount necessary to compensate buyers for the new income taxes they will pay due to their being at or above the phaseout threshold.

With interest rates currently at 4%, this means, and trust me on this, every $1,000 in added income taxes reduces the house price by ($1,000/4% or) $25,000. However, in reality, these impacts will be dramatically mitigated by tax avoidance strategies available to the very wealthy including systematically larger downpayments, cash purchases, corporate purchases and so on.

In short, few homeowners will be impacted by the new tax treatment of deductions including the MID. For households with incomes below $300,000, there are no impacts stemming from this change and for those with higher incomes, the impacts will largely be mitigated by tax avoidance behavior. At worst, only homes worth well over a million dollars will be adversely affected.

With huge deficits as far as the eye can see, the tax treatment of deductions is sure to continue to change and evolve. Enjoy the debate, but be aware that next time you may be on the menu.

Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net.

His daily 70 word economics and policy blog can be seen at www.econ70.com.

Builders business on the rebound The nation's home builders continue to feel much better about their industry, but the dramatic gains seen through the summer and fall appear to be moderating.

An industry index measuring home builder sentiment in the single-family market rose two points in December, while November's fivepoint monthly gain was revised lower by one point.

The National Association of Home Builder's/Wells Fargo Housing Market Index now stands at 47; 50 is the line between positive and negative sentiment. The index stood at 21 in December of 2011.

"Builders across the country are reporting some of the best sales conditions they've seen in more than five years, with more serious buyers coming forward and a shrinking number of vacant and foreclosed properties on the market," observed NAHB Chairman Barry Rutenberg in Tuesday's release.

"However, one thing that is still holding back potential home sales is the difficulty that many families are encountering in getting qualified for a mortgage due to today's overly stringent lending standards."

Of the index's three components, current sales rose two points to 51, pushing into positive territory for the first time since the housing crash. Sales expectations over the next six months, while remaining in the positive, dropped one point, and buyer traffic rose one point but is still far from positive territory at 36.

Regionally, home builder sentiment saw its biggest jump in the Northeast, up 12 points month-to-month. Sentiment rose two points in the Midwest, but fell two points in the South and three points in the West. Only in the Midwest are the home builders in solid positive territory.

"We believe that a properly balanced agreement will breed confidence in the political system and the U.S. economy, will enable the housing market to continue its recovery, and, in turn, will promote broader economic growth" Letter to Obama and Boehner Signed by 18 CEOs December's gains in sentiment are not as dramatic as the jump in November, as some builders are likely concerned about the possibility of going over the so-called "fiscal cliff." Some builders have already reported laying off workers and delaying projects, concerned that much-needed capital for construction will dry up if a deal cannot be reached by the end of the year.

Last week the CEO's of 18 home building companies, who collectively build 30 percent of the nation's new homes, sent a letter to President Barack Obama and House Speaker John Boehner urging them to avoid the fiscal cliff, even if it means raising taxes on the builders: "We support a comprehensive agreement in Washington to avoid the fiscal cliff that includes revenue increases (including tax rate adjustments) together with meaningful entitlement reforms. We believe that a properly balanced agreement will breed confidence in the political system and the U.S. economy, will enable the housing market to continue its recovery, and, in turn, will promote broader economic growth."

The letter was signed by the CEOs of publicly traded builders including Beazer Homes, Hovananian Enterprises, KBHome, Lennar, MDC, and Meritage.

By CNBC's Diana Olick

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NAHB Home Builders, Utilities Hail Reconsideration of EPA Stormwater Discharge Rule

In a victory for the environment, affordable housing and the nation’s energy infrastructure, the National Association of Home Builders

(NAHB), Utility Water Act Group (UWAG) and Wisconsin Builders Association have settled a longstanding lawsuit against the Environmental Protection Agency after the agency agreed to withdraw the numeric limit it developed to control stormwater runoff from construction sites and to pursue additional improvements to the 2009 rule.

The lawsuit had noted that the EPA’s numeric limit would have cost stakeholders up to $10 billion a year in attempts to comply – and that coming up with a number that would work across all geographic areas and soil types would not be possible.

NAHB and UWAG have been closely involved in EPA’s efforts to develop appropriate controls for construction and development industry stormwater discharge for more than 15 years. For UWAG, the focus has been on the particular impacts of EPA’s rule on linear gas and electric utility projects, such as the construction of new transmission and distribution lines. For the home builders, the focus has been on the

challenge associated with meeting a numeric limit across all construction sites.

“NAHB supports responsible development and the goals of the Clean Water Act. We are relieved that the agency is taking a commonsense approach to this rulemaking, and we will continue to work with state and federal regulators to keep our waterways clean,” said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. Ray Butts of NextEra Energy, Chair of UWAG’s Policy Committee, echoed Rutenberg’s comments, adding: “We appreciate the agency’s efforts to work with all of us to address specific problems in the underlying rule that – if unresolved – would have led to significant and unnecessary cost, engineering and energy impacts with no appreciable environmental benefit.”

In addition to withdrawing the numeric limits, EPA has agreed to clarify the non-numeric portion of the rule so that land developers, permit writers and inspectors better understand what measures are

required to help protect the nation’s waterways.

In December 2009, under court order, the agency finalized Effluent Limitation Guidelines (ELGs) for the construction and development industry to establish the minimum technology required to control the impact of stormwater runoff. EPA established both numeric limits and best management practices, such as silt fences, for certain active construction sites.

NAHB, UWAG and the Wisconsin builders challenged the rule shortly after it was issued. Pursuant to the parties’ settlement agreement, EPA has agreed to sign a notice of proposed rulemaking to amend its 2009 rule by April 15 and agreed to take final action on the proposed rule

by Feb. 28, 2014.

“NAHB will continue to educate its members about the importance of regulatory compliance as they build new homes,” Rutenberg said. “At the same time, we will remain vigilant about the costs of compliance and help ensure that the money is well spent – because the cost is reflected in the price of a new home.”

Butts noted that this is just one of several significant EPA proceedings affecting the electric power industry.

“We remain hopeful that the parties’ common-sense solution here will be a bellwether of things to come in the agency’s other rulemakings.”

“This settlement is a win for the environment and for the recovering economy,” said Wisconsin Builders Association Executive Vice President Jerry Deschane. “The proposed numeric limits were a ‘one-size-fitsnowhere’ approach that would have cost a fortune to implement and would not have improved water quality.

Common-sense best management practices and understandable regulations are the best path to achieving the goals of the Clean Water Act and maintaining housing affordability.”

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Builders

utlook on the scene |

The year that was 2012 In 2012, the El Paso Association of Builders commemorated our 65th anniversay. The year was jam packed with events and celebrations. Here, we pay a final tribute to another historical year at EPAB.

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10 List of Improving Housing Markets Expands to 242 in January In the latest sign of a burgeoning recovery in U.S. housing markets, the number of metropolitan areas on the National Association of Home Builders/First American Improving Markets Index (IMI) rose for a fifth consecutive month to 242 in January.

This is up from 201 markets listed as improving in December, and includes entrants from 48 states and the District of Columbia.

The IMI identifies metro areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. A total of 47 new metros were added to the list and six were dropped from it this month.

Newly added metros include such geographically diverse locations as Los Angeles, Calif.; Auburn, Ala.; Des Moines, Iowa; Nashville, Tenn.; Richmond, Va.; and Cleveland, Ohio.

“We created the improving markets list in September of 2011 to spotlight individual metros where -- contrary to the national headlines -- housing markets were on the mend,” noted NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “Today, 242 out of 361 metros nationwide appear on that list, including representatives from almost every state in the country. The story is no longer about exceptions to the rule, but about the growing breadth of the housing recovery even as overly strict mortgage requirements hold back the pace of improvement.”

“The IMI has almost doubled in the past two months as stronger demand during prime home buying season boosted prices across a broader number of metropolitan areas,” noted NAHB Chief Economist David Crowe. “Similar home price gains, and hence the IMI, may be tempered in the future as we see data from typically slower months for home sales.”

“Potential home buyers should be encouraged by the positive momentum in home prices, permitting and employment that is increasingly evident in not just isolated housing markets, but a broadening swath of the country,” added Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, housing price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metropolitan area must see improvement in all three measures for at least six consecutive months following those measures’ respective troughs before being included on the improving markets list.

A complete list of all 242 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in January, is available at www.nahb.org/imi. A stateby-state listing of metro areas on the list is also available at: www.nahb.org/improvingmarkets.

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NAHB Housing Starts Slip, Permits Rise In November Following an above-trend rate of production in October, nationwide housing starts slipped 3.0 percent to a seasonally adjusted annual rate of 861,000 units in November, according to newly released data from HUD and the U.S. Census Bureau. Meanwhile, permits for new construction rose to their strongest level in more than four years, with a 3.6 percent gain to 899,000 units.

“Many builders have reported improving conditions in their local housing markets and are increasingly optimistic about the spring buying season, but they are being very careful not to get ahead of demand,” observed Barry Rutenberg, chairman of the National Association of Home

Builders (NAHB) and a home builder from Gainesville, Fla. “Meanwhile, tight credit conditions are still the chief obstacle to a quicker recovery.”

“The starts report for November reflects a readjustment to a more sustainable level of production following significant gains in the previous two months,” said NAHB Chief Economist David Crowe. “That said, starts in this quarter are still running well ahead of the third quarter, and we are on track for a projected 25 percent improvement in housing production for all of 2012.

Moreover, the fact that issuance of building permits hit its fastest rate since July of 2008 in November is indicative of the continued, modest growth that we expect to see in newhome construction through 2013.”

Single-family housing starts declined 4.1 percent to a seasonally adjusted annual rate of 565,000 units in November, while multifamily starts edged down 1.0 percent, to 296,000 units.

Regionally, combined single- and multifamily starts activity was mixed in November. While the Midwest and

South posted respective gains of 3.3 percent and 2.9 percent, the Northeast and West posted respective declines of 5.2 percent and 19.2 percent.

Permit issuance, which can be an indicator of future building activity, rose 3.6 percent to a seasonally adjusted, annual rate of 899,000 units in November. This was due to a 10.6 percent gain to 334,000 units on the multifamily side, as single-family

permits held virtually unchanged for the month, at 565,000 units.

Permits rose in all but one region in November. Gains of 8.1 percent, 2.9 percent and 5.9 percent were registered in the Midwest, South and West, respectively, while a 6.2 percent decline was registered in the Northeast.

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Expert Advice

Energy Efficiency Tax Credits are BACK… As part of the fiscal cliff rescue legislation Congress renewed the Builder Tax Credit in Section 408 of the American Taxpayer Relief Act on Dec 31. The tax credit, which expired back in 2011, has been retroactively restored and extended until Dec. 31, 2013. Back to reality, now that everyone had time to rest, well... if you can say that about the holidays.

Nevertheless it’s always nice to go thru this season with family and friends. But it’s also nice to plan for the New Year, new projects, new goals, and objectives, new challenges to overcome. As always, I will be writing about energy, and the extension of the Energy Efficiency Tax Credit. It expired back in December 2011 but now provides a $2,000 Tax Credit for builders that meet a threshold of 50% reduction of Heating and Cooling load on new homes.

The main intent is to encourage builders to use more energy efficient practices while building their new homes. With this Federal Incentive everybody wins; the builder receives an incentive which offsets the extra cost of building energy efficient

homes; the home buyers get a more comfortable energy efficient home; suppliers are able to sell a few extra products or energy efficient upgrades from their standard offering; and regardless of your interest on Climate Change a more energy efficient home also does its part to reduce its carbon footprint thru energy efficiency.

How to qualify for the Tax Credit?

It’s very straight forward: if you are already doing Energy Star Version 3 or ECO Home you are a step closer to qualify for the Tax Credit. This doesn’t mean that just by being Energy Star rated you already qualify, no, this is just a good start.

In reality they are a little bit different, but they go thru the similar process by using the HERS qualification process and testing, with a focus of reducing the Heating and Cooling load of the entire homes by following certain parameters that I can assist you achieve. I have to say the Tax Credit is not something hard to achieve, but energy efficiency upgrades need to be implemented with a goal of doing it thru the most cost effective strategy.

In summary if you build a home

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that’s 50% more energy efficient on heating and cooling you can get $2000 back in your pocket; if you build a manufactured home that’s 30% more energy efficient, you get $1000. You don’t have to be a licensed builder to earn it; the tax credit (which is as good as cash, versus a deduction) goes to anyone with a financial interest in the building of the home. It could be anyone who builds and then sells or leases the residence, whether that’s a homeowner, a design/build firm, or a production builder. The one change is the baseline for the measurement of energy efficiency- it used to be the 2003 International Energy Conservation Code (IECC) but now has been changed to the 2006 IECC. Since the worst home you can legally build (according to code) is better than the 2006 IECC, you should definitely look into qualifying to meet the Tax Credit parameters. If you would like to learn more about how to qualify your homes, please contact us at jruiz@senercon.com or call me at 915-613-4168

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Associates Council

Sam Shallenberger

Western Wholesale Supply

It’s 2013 and it seems like last year flew by. I know that when it came to the work we do at the association the year was at times difficult and challenging but never boring. I would like to think that 2013 will be a year of transformation and of recommitment from all of you. I can’t begin to stress how important it will be for each one of you to be committed to the goals and financial health of the association as we begin our 66th year in El Paso.

Builders January BOD Meeting & Training The first meeting of the 2013 Board of Directors was held on January 10 at the association conference and learning center. New board members were introduced and some who couldn’t attend the installation were installed by the executive committee.

The board reviewed financials and also approved the 2013 budget.

Following the meeting the board took part in an orientation designed to help board directors better understand their position in the association, what to expect, and what responsibilities they have been entrusted with.

The next board/general meeting will take place on Valentine’s day, February 14 at the El Paso Club. Call the association for information.

While tradition plays into my request I want to issue a challenge to the newer and younger members of our association. I challenge each of you to make 2013 better than last year and work to make 2014 better than 2013. This is after all an association that has its roots in toughness, with sensitivity to a majority whose voice is often not heard. It will require work and commitment on your part and it starts with attending meetings, getting involved in events, and getting an ad in the Outlook. Since you have a copy in your hands or on your screen look at who advertises and ask yourself why are they doing this.

As a board member I’m looking at the financials for this organization on a very regular basis. It is afterall a business that struggles like any other, and in some cases can do little about

that struggle. As Associate members we are holding a key to unlock the potential for this place right in our hands. It’s called advertising and marketing. Your business like mine has a line item for advertising and many times I rely on my suppliers and vendors to help me with that advertising. What I have learned from Ray is that I need to look at advertising in the association publications for several reasons: it is targeted to readers who are both individual and bulk buyers; it is micro targeted rather than shotgun advertising, hoping to hit something by mere chance; it is a good buy when you consider you get full color ads in print and on line; it benefits the association by making money for the association. Fact is that without advertising revenue from less than 30

members this association could’ve folded over the last few years. I never looked at our advertising in such a way but have come to realize how important it is for the EPAB and how much you can benefit by placing an ad.

Over the next few months you may see new faces approaching you to buy advertising in the Outlook, the directory, Build Book, or Su Casa Nueva. Don’t get confused on the last one as we have been told a publication with no affiliation to the EPAB has begun marketing in El Paso. They do not belong to or provide income to the association. If you have any questions call the EPAB office to ask. And while you look at what you should do think about advertising right here right now.

utlook on the scene |

Builders

utlook

www.elpasobuilders.com www.epbuilders.org 6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038 ■ execuTive oFFicerS edmundo Dena – President Accent Homes Frank Torres – vice President GMF Custom Homes edgar montiel – Secretary/Treasurer Palo Verde Homes Sam Shallenberger – Associates chair Western Wholesale Frank Arroyos- immediate Past President Cisco Homes ray Adauto – executive vice President El Paso Association of Builders

■ 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 ■ couNciL/commiTTee cHAirS Associates council Sam Shallenberger Build PAc Randy Bowling Desert Green Building council Javier Ruiz Land use council Sal Masoud Young Designer Award John Chaney remodelers council Rudy Guel membership retention Mike Santamaria, Greg Bowling Finance committee Edgar Montiel Women’s council Lorraine Huit ■ ADviSorY To THe BoArD J. Crawford Kerr, Attorney, Firth, Johnston & Martinez ■ BoArD oF DirecTorS Juanita Garcia, Icon Custom Builders Samira Gonzalez, Edwards Homes Walter Lujan, Dawco Construction Carlos Villalobos, Pointe Homes Don Rassette, Rassette Homes Beverly Clevenger, Automated Division 6 Builders Frank Spencer, Aztec Contractors Kathy Parry, Hunt Communities Sal Masoud, Del Rio Engineering Robert L. Foster, Southwest Land Development Services Leti Navarette, Custom Dream Homes Linda Troncoso, TR-Engineering Lance VanDeman, Hub International John Chaney, Passage Supply Joe Bernal, El Paso Employee Benefits Ken Wade, El Paso Building Materials Ruben Orquiz, MTI Ready Mix Kathy Carrillo, Pioneer Bank Henry Tinajero, West Star Bank Paul Zacour, Zacour & Associates Chuck Gabriel, Carpets West Ted Escobedo, Snappy Publishing Lorraine Huit, Cardel Design Javier Ruiz, Border Solar & Senercon

BuiLDerS (800)252-3625

2012 Builder member of The Year Frank Arroyos Cisco Homes 2012 Pat cox Award Mike Santamaria Mountain Vista Homes 2012 Associate of The Year Sam Shallenberger Western Wholesale Supply John Schatzman Award Hunt Companies

Honorary Life members Rudy Guel Brad Roe Cliff Anthes Wayne Grinnell Chester Lovelady Don Henderson Anna Gil

Past Presidents committed to Serve Greg Bowling 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 Hershel Stringfield

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. © 2013 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