Builders Outlook
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The National Association of Home Builders (NAHB recently commended Senate passage of the Housing Opportunity Through Modernization Act of 2016, legislation that includes many NAHB-supported bipartisan fixes to U.S. Department of Housing and Urban Development programs. “This bill contains a number of reforms to increase access to affordable rental housing, provide assistance to low-income renters and facilitate homeownership,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill.
Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care. An estimated 12 million renter and homeowner households now pay more than 50 percent of their annual incomes for housing. A family with one full-time worker earning the minimum wage cannot afford the local fair-market rent for a two-bedroom apartment anywhere in the United States.
Tax Credit properties. • Protect Section 8 Housing Choice Voucher residents from displacement due to fluctuations in the Fair Market Rent, which determines payment standard amounts for the voucher program. This protects voucher holders from economic factors beyond their control and allows owners to
retain good tenants. • Change the Rural Housing Service Single Family Guaranteed Loan Program so that it will be current with other government loan programs while providing efficiencies for home buyers and lenders. • Reduce current FHA regulations surrounding existing condominium
projects, including streamlining project certification rules and reducing owner-occupancy requirements. Easing restrictions will assist first-time home buyers and condo owners who want to sell their condo and move up to a single-family detached home. The House approved a companion bill earlier this year.
Additionally, the Show features special networking events, keynote speakers, quality educational sessions and a solid sales and marketing atmosphere. Imagine an event powerful enough to lead an industry and reshape communities across the region. Imagine a gathering of
thousands of residential construction professionals from every sector of the housing industry. Every year, more than 2,000 leaders in single and multi-family building, remodeling, land development, finance and management come together to share the latest information, exchange ideas, and foster lasting personal and professional relationships. Conveniently located between Dallas and Fort Worth, the Gaylord Texan® Resort & Convention Center, is a luxurious hotel overlooking Lake Grapevine, brimming with authentic Texas style and hospitality. Within the
signature glass atrium, guests can browse eclectic shops and dine at world-class restaurants that offer everything from barbecue to TexMex. During downtime, guests can explore the resort's 4.5 acres of lush indoor gardens, enjoy a brisk workout at the fitness center or unwind at Relâche Spa & Salon. Thrill your family with Gaylord Texan Resort's westernthemed, 10-acre resort pool and lazy river complex featuring entertaining water features and tasty cuisine. Lawn games and sunbathing decks are among other highlights at the Grapevine waterpark. The Paradise Springs at Gaylord Texan is an exclusive amenity for resort guests.
Industry takes center stage at Sunbelt Builders Show
The Sunbelt Builders Show™ (August 3-4, 2016) is one of the largest building industry events in North America and is owned and operated by the Texas Association of Builders. The award-winning Show draws thousands of residential construction industry professionals from the United States, Canada and Mexico to more than 200 exhibit booths.
Senate Approves Legislation to Reform Affordable Housing Programs
AFFORDABLE HOUSING
Specifically, the bill would:
• Streamline inspection requirements in the Housing Choice Voucher Program, which will allow voucher holders to move into their units more quickly. The changes will level the playing field for voucher holders who are competing with market-rate renters who can move into a unit immediately. • Allow the contract terms of HUD’s Section 8 Project Based Housing Choice Voucher program to be extended from 15 to 20 years. This will help facilitate the use of project-based vouchers within the Low Income Housing
National, State & Local Building Industry News 2016: Issue 7
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Builders Outlook
WE’RE PROUD TO SERVE THOSE WHO’VE SERVED US ALL.
2016 issue 7
2016 issue 7
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Builders Outlook
President’s Message Carlos Villalobos
President, El Paso Association of Builders
Key Issues shape housing market future We are cruising halfway through the summer (and through the year) with what feels like a healthy market. Even though new home closings are down a bit compared to last year, we believe this has to do with lot shortage and overall decreased supply of new homes, however, demand feels strong in the last two months. The National Scenario is another story, according to Redfin “June Housing Market was the Fastest and Most Competitive on Record” since they began tracking this in 2009. Redfin mentions a “mismatch between supply and demand” as the culprit behind these record numbers, meaning mainly that there is a lack of affordable, desirable homes on the market, being that supply dropped to 2.8 months, “indicating buyer demand outstripped supply by the widest margin” in seven years. However, there are many factors playing into this equation that we need to keep our eyes on:
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1. Brexit helps keep interest rates low (for now): As the European Union stumbles into uncertainty, world capitals flock to safe havens, the safest haven of all happens to be US Treasury Bills. As demand for T Bills rises, it puts downward pressure on interest rates (the more demand there is for T Bills, the lower the interest rate the US government needs to pay its bondholders to sell its Bills). These lower yields will translate into higher real estate prices for income generating real estate as market caps are directly tied to T-Bill yields.
2. Increasing uncertainty and slowing economies abroad: With the EU in disarray, China up to its ears in debt, and many other countries who’s economic strength comes mainly from Oil suffering dangerous trade deficits, the United States is once again valued by investors as a less volatile alternative. Literally billions of international investor
dollars are currently moving into the United States, many of these billions are invested in Real Estate, further driving prices up by increasing demand.
3. High Rental Rates: Apartment rent rates have seen a steady increase in the past years, having reached plateaus in some markets but remaining high. As this phenomenon is likely to persist, it currently makes economic sense to purchase a home and put the payment on lockdown for 30 years. As we move forward, the country’s (and the next President’s) biggest challenge will be to keep a healthy employment rate amid an inevitable global downturn. Thank you to all of the Parade of Homes 2016 participants, to all the participating builders, sponsors, to all of you who helped out at the boot or otherwise and of course to all of the attendees, we put on a great show this year, we couldn’t have done it with out you.
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Builders Outlook
Executive’s Message Ray Adauto, Executive Vice President EPAB So it’s been a 100 degrees plus for how long? The long hot summer is under way full steam. The new home construction going on in this area is very good right now as evidenced by the super turnout we had at the Parade of Homes™. Oh and before I forget and getting another lashing of spaghetti let me make a correction to my June column. Roe Engineering is the company who laid out Enchanted Hills where we held the Parade. As much as I gave credit to Conde it was Roe. So my apologies to both companies for the mistake. Both are great members and both do great work. While we had a great turnout and the builders did some awesome homes we have to get back in the swing of things and back to our regular routine. Sort of. We normally try to find a week or two in July to take some much needed time off but this year we probably will do only one week in July and at least the other in August. Watch for our announcements on closing the office. On July 10 the El Paso Times ran a column by highly respected tax attorney David Leeper. Man did his column start a
2016 Issue 7
Summer brings heated debate
firestorm within the association members. You see Mr. Leeper is writing a series on how the IRS is looking for ways to force businesses who have 1099 partnership or agreements to now be held responsible for those 1099’ers and all that comes with it, including penalties for the past three years even though you played by the rules. Can you imagine? Anyway I’m hoping to get permission from Mr. Leeper to run his story on these pages. Either way I’m sure you’ll hear more about this in the coming months. Killing. It’s such a horrible thought no matter who’s doing it to whom, but the current murder of cops in an ambush and unarmed civilians by cops is really scary. So is the current undertone throughout the country. It affects our industry in so many ways as customers need to feel secure in their purchases while the protests and more importantly the killings stop. With the political parties convention happening this month we need to pray nothing more happens. Some of our members are going to the Sunbelt Builders show in Grapevine, Texas. As the economy has gotten better so has the need to plan ahead for shows and education events like this. My suggestion is to plan as far ahead as possible while making sure you have your travel plans ready. And so speaking of plans go out and sell something. It’s a great time to do this.
Cindy Bilbe
Cathy Larson
Roberta Chestnut
Melanie Jones
Pat (Luz) Martinez
Lori Phillips
Ron Rush
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2016 issue 7
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Builders Outlook
National Builder News Builder Confidence Holds Firm
n Builder confidence in the market for newly built, single-family homes in July fell one point to 59 from a June reading of 60 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. “For the past six months, builder confidence has remained in a relatively narrow positive range that is consistent with the ongoing gradual housing recovery that is underway,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “However, we are still hearing reports from our members of scattered softness in some markets, due largely to regulatory constraints and shortages of lots and labor.” “The economic fundamentals are in place for continued slow, steady growth in the housing market,” said NAHB Chief Economist Robert Dietz. “Job creation is solid, mortgage rates are at historic lows and household formations are rising. These factors should help to bring more buyers into
the market as the year progresses.” Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All three HMI components edged lower in July. The components measuring current sales expectations and buyer traffic each fell one point to 63 and 45, respectively. The index measuring sales expectations in the next six months posted a three-point decline to 66. The three-month moving averages for regional HMI scores held remarkably steady. The Northeast, Midwest and South were unchanged at 39, 57 and 61, respectively. The West edged one point higher to 69.
BUILDING
Housing Starts Rise 4.8 Percent
n Nationwide housing starts rose 4.8 percent in June to a seasonally adjusted annual rate of 1.19 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Overall permit issuance increased 1.5 percent to a seasonally adjusted annual rate of 1.15 million. “This month’s uptick in production is an indicator that the housing market continues to move forward,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “At the same time, builders are adding inventory at a cautious pace as they face lot shortages and regulatory hurdles.” “The June report is consistent with our forecast for a gradual but consistent recovery of the housing market,” said NAHB Chief Economist Robert Dietz. “Single-family production should continue to strengthen throughout the year, buoyed by job growth, new household formations and
El Pa aso
low mortgage interest rates.” Single-family housing starts rose 4.4 percent to a seasonally adjusted annual rate of 778,000 units in June while multifamily production ticked up 5.4 percent to 411,000 units. Regionally in June, combined singleand multifamily starts increased in the Northeast and West, with respective gains of 46.3 percent and 17.4 percent. The Midwest registered a 5.2 percent loss and the South fell 3.4 percent. However, single-family production rose in all four regions. Both sectors posted permit gains. Single-family permits edged up 1 percent to a rate of 738,000 while multifamily permits rose 2.5 percent to 415,000. Permit issuance increased 9.4 percent in the Northeast and 8.3 percent in the South. Meanwhile, the Midwest and West registered respective losses of 2.8 percent and 10.1 percent.
SINCE 1950
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National Perspective Home Building
2016 Issue 7
Most Americans Think the Housing Crisis Never Ended
One in five says that the worst is yet to come.
The Great Recession rewrote the American dream. Millions of Americans who thought they’d captured the flag instead got swallowed up by a national mortgage-foreclosure crisis.
Many of those former homeowners are now renters, competing in ever-more concentrated job markets for everscarcer affordable housing. By KRISTON CAPPS
So perhaps it comes as no surprise that most Americans say that the housing crisis never ended. In fact, one in five Americans say that the worst is yet to come, according to a new poll from the John D. and Catherine T. MacArthur Foundation. Maybe these are the same one in five Americans who say that they have sacrificed spending in order to make rent. Maybe they feel squeezed by housing markets where it costs more to rent than to own, but where households can hardly afford to do either. It’s nevertheless a staggering answer: 19 percent of poll respondents said that the worst is yet to come. And the share of respondents who gave that answer, polled between April and May of this year, is virtually unchanged from the share who responded the same way in 2015 (20 percent), 2014 (19 percent), and 2013 (19 percent). Pessimism about the housing market is not a narrow band, either. Asked about the difference between the start of the housing crisis in 2008 and where things stand today, the largest share of respondents said that we’re still in the thick of the housing crisis (44 percent). A whopping 81 percent of respondents said that housing affordability is a problem. And more than one-third of respondents (37 percent) said that housing affordability is a “very serious problem.” This share of worried Americans is also virtually
unchanged from a year ago. The poll also finds an enormous appetite for leadership from Washington, D.C. Respondents were split on how much they thought anyone could really do to solve the housing crisis, with about a third saying “a great deal,” a third saying “a fair amount,” and a third saying “just some” or “nothing at all.” But Americans think that it’s important that their leaders address the problem, no matter what. Large majorities of respondents said that it was “very important” for elected leaders to address housing affordability (60 percent) and that candidates for the presidential election were paying “not enough attention” to the issue (63 percent).
Asked about specific policies that could address housing affordability, the respondents favored them—all of them—by big margins. This portion on solutions follows verbatim from the poll: • Revise the federal income tax code so that more families with incomes from $40,000 to $70,000 receive tax benefits intended to help them purchase homes. (Total favor: 81 percent; total oppose: 16 percent) • Expand federal housing policies and programs to ensure that families earning less than $30,000 with children under age 18 receive some assistance with their housing costs. (Total favor: 80 percent; total oppose: 18 percent)
• Allow developers to build more housing units if they include units that are affordable to families making less than $50,000. (Total favor: 79 percent; total oppose: 18 percent) • Expand federal housing policies and programs to ensure that lowincome families with children under age 18 receive some assistance with their housing costs. (Total favor: 76 percent; total oppose: 22 percent) • Require that at least 20 percent of housing in local communities is affordable for families making less than $50,000. (Total favor: 74 percent; total oppose: 23 percent) • Ensure that federal programs, such as the Earned Income Tax Credit and Temporary Assistance for Needy Families, provide enough income assistance to cover housing costs. (Total favor: 74 percent; total oppose: 22 percent) • Expand rental assistance to ensure that the approximately 14 million Americans who currently qualify for rental assistance but are not receiving it, get it. (Total favor: 73 percent; total oppose: 24 percent) • Give renters a federal tax break, similar to the federal tax break homeowners currently get when they deduct the interest they pay on their mortgage. (Total favor: 70 percent; total oppose: 26 percent) Some of these proposals are fairly radical. Expanding the federal mortgage interest tax deduction to
renters is a far-reaching proposal! Voters might not love several of these ideas after (say) they went through a Congressional Budget Office scoring, but the fact that a majority of them would welcome fairly dramatic action from Congress on affordable housing should give legislators reason to take notice. It should also give voters pause that Congress doesn’t plan to do anything. It is worrying that, several years into the recovery, so many see the problem as not just persistent but worsening. They see the response from the government as not just insufficient but non-existent. There is no reason to think that federal spending on housing—which has declined over time and contributed to the painful persistence of the housing crisis—will improve any time before November or even after. While the Republican or Democratic candidate for the White House could choose to make affordable housing a more salient aspect of his or her respective campaigns, nothing is likely to change without a sea change in Congress. Congressional deadlock has only diminished what little federal support for housing exists in the budget. For many Americans, the housing crisis won’t go away.
2016 ISSUE 7
Thank you! Builders Outlook
We could not build it without you.
The El Paso Association of Builders expresses our sincere gratitude to the major sponsors of the 2016 Parade of Homes. Your commitment to our association and our builders are most valued. Because of their support and advertising, the 2016 Parade of Homes was a huge success!
First Responder Free Admission Sponsor:
Military Free Admission Sponsor:
of
TM
OPEN JuNE 25 - July 10
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Enchanted Hills Subdivision Development by: Southwest Land Development Beautiful Homes built by: BIC, Pointe Homes, DR Horton, CTU Metro Homes, Pacifica Homes, Deal 2 Deal Homes, Trinity Homes and Edwards Homes STEWART TITLE GECU FIRST LIGHT FEDERAL CREDIT UNION FOXWORTH GALBARAITH MORRISON/WHIRLPOOL EL PASO TRUSS NEW ERA SPRAY FOAM SECURITY NATIONAL MORTGAGE
PARADE OF HOMES PROGRAM ADVERTISERS ROCKY MOUNTAIN MORTGAGE SOLAR SSARAMART LIVING BUILDERS SOURCE APPLIANCE SARABIA’s BLUE SANITATION GALE INSULATION PIONEER BANK EL PASO BUILDING MATERIALS DWS SUPPLY
OCEAN GALLERY DAWCO SU CASA MAGAZINE BELLA VISTA HOMES RASETTE HOMES DORIAN CONSTRUCTION
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Builders Outlook On the Scene Volunteers help Parade success
An event like the Parade of Homes cannot be done without a great group of volunteers. It’s impossible to plan and implement when you have a staff of two but again this year we were so thankful to the following volunteers for their unselfish giving of time. These volunteers spent time at the ticket booth for us this year: Maria Ortiz Samantha Solano John Dorney Gina Avila Arron Rich Sam Trimble Luis Rosas Mary Alice Contreras Chris Morales Angelique Roman Judy Barrios Henry Tinajero Margarita Tinajero Michael Almeida Angie Bautista Willie Bautista Maria Montoya Lorena Alvarado Paula Orrill Julie Vandergriff Tania Chavez Tyler Gonnell Sandra Lucero Bret Thompson Duane Tierson Kathy Parry Ismael Chavez Oscar Nunez Karina Romero Callie Sneddon Ivonne Camacho Lilia Morales Jose Marquez Jose De Alba Carlos Cuellar Alfonso Castrejon Letty Najera Mayra Esparza Our sincere thanks to Margaret Adauto for coordinating, opening, closing and substituting at the ticket booth. Special thanks to Ted and Lalo from Snappy Publishing for all the hard work putting on the Preview Party photo opportunity frames. Photos from Parade Preview Party hosted by EPAB June 24.
Issue 7
TAB Builders Wins Three AEA Awards
AUSTIN, TEXAS – The Texas Association of Builders (TAB) captured three Association Excellence Awards at the National Association of Builders (NAHB) Association of Leadership Institute. TAB won for Best Service to Members, Best Government Affairs Effort – Regionally and Best Association Operations Program Administered. Winners in more than 130 categories were announced earlier this month.
The Best Service to Members program was for TAB’s comprehensive set of contractual documents that include almost 100 Texas–specific residential construction contracts and addendums. These documents provide an valuable benefit to builders and consumers in the form of enhanced legal protections, reduced liability, clear legal compliance with Texas laws and a solid written warranty with some of the strongest performance standards in the nation. While the contracts package was first offered in 1999, the contracts package is updated to
reflect changes to the law following each Texas Legislative Session. The package has evolved from six simple documents to almost 100 contracts and addendums. The 2015 updates include new agreements, stream-lined contracts, mandated statutory and case law changes, and revised warranty and performance standards to reflect current engineering and construction practices. TAB’s Government Affairs team worked diligently on the statutorily circumventing inflexible energy code mandates, which won for Best Government Affairs Effort – Regionally. TAB passed a bill through the 2015 Texas Legislature that provides for less stringent performance path scores and sets a six year energy code amendment cycle for state energy codes. As a result of overly rigid energy code mandates, which lacked market justification and significantly increased the
price of homes in some of the most cost-sensitive markets, it was necessary to relieve this mounting problem at the state level by passing legislation to alleviate the negative effect that ever increasing energy codes were putting on the home building industry in Texas. It was incumbent upon TAB to address the political realities of passing a bill over the strong objections of the powerful manufacturer’s lobby and the influential environmental interest groups. The achieved goal was to pass long-term legislation that would alleviate the negative effects of rising energy codes, while both responding to and overcoming the objections of opponents. For Best Association Operations Program Administered, TAB created a Texas Executive Officers Council (TEOC) Handbook. The TEOC Handbook was developed to contain all the resources - or where best to find more information - that an EO needs in an easy-to-use informational resource guide. The goal in developing the handbook was to provide EOs with a definitive source in which to find everything from Texas Association of Builders and NAHB contact lists to information on membership reporting to member benefits to bylaws. The handbook also contains NAHB's Guide for New EOs.
About the NAHB AEA Awards: The Association Excellence Awards is an annual program designed to recognize the outstanding accomplishments of state and local HBAs and executive officers in the field of association management. Likesized HBAs compete against each other for the “best of” educational initiatives, communications projects, non-dues revenue generation for programs such as home and garden shows and parades, community service and other categories. About the Texas Association of Builders – The Texas Association of Builders (TAB) is a trade association serving the needs of home builders, remodelers and land developers throughout Texas, as well as the companies that service them. Founded in 1946, TAB is an affiliate of the National Association of Home Builders (NAHB) and has 28 local home builders associations and nearly 10,000 members across Texas. Representing over 702,500 jobs and more than $31.1 billion annually in the Texas economy, the state and local associations play a crucial role in providing housing for Texans. For more information about the Texas Association of Builders, visit www.TexasBuilders.org. Photo: Texas Association of Builders' Executive Officer Scott Norman (right) picked up three Association Excellence Awards at the Association of Leadership Institute this earlier month.
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Builders Outlook
Lending Homeownership's Perfect Storm: Low Mortgage Rates, High Housing Starts
Housing affordability could become more prominent in the next few months, thanks in part to new home construction. By Andrew Soergel |
Home construction bounced back in June after an unimpressive May, potentially setting the stage for more moderate home price growth, with mortgage rates already hovering near historic lows. Housing starts jumped 4.8 percent last month, according to a report published Tuesday by the Census Bureau. That's the best rate of home construction improvement since February and well ahead of analysts' more modest expectations. The number of building permits issued in June, likewise, ticked up 1.5 percent over the month, while the number of housing completions skyrocketed 12.3 percent. These finished projects showed improvement in all four of the country's major geographic regions, though the Northeast led the charge with an 89.7 percent spike, spurred mostly by multifamily units and apartment buildings. All told, June was a welcome step in the
right direction following what has thus far been a lackluster year in the world of home construction. Despite the monthly improvement, housing starts are still down 2 percent over the year. And building permits are down a whopping 13.6 percent from June 2015. "June's data release shows monthly starts are still about 20 percent below historical averages," Ralph McLaughlin, chief economist at real estate hub Trulia, said in a statement Tuesday. "Nationally, new housing supply relative to demand is about 15 percent below the historical average." All of this means fewer job opportunities for domestic construction workers. Such payrolls were unchanged in the month of June, according to the Bureau of Labor Statistics. But construction employment fell in April and May, which hadn't happened in consecutive months since mid-2012. "This may be an indication that as other segments of the U.S. economy continue to add jobs, a growing number of construction workers and construction jobseekers are shifting to other industries," Anirban Basu, chief economist at the Associated Builders and Contractors trade association, said in a statement earlier this month, indicating that "the size of the construction industry labor force shrank" in recent months. The uptick in construction activity could
ultimately open up more opportunities to those in the construction industry while helping to moderate prices for would-be buyers on the fence about jumping into homeownership. When more housing units become available, rental and purchase prices tend to moderate, as increased competition forces real estate agents, landlords and home sellers to ease up on what they're asking for.
"Homebuilding continues to gradually recover from the housing bust that accompanied the Great Recession," a team of researchers at The PNC Financial Services Group wrote in a research note Tuesday. "Demand for new single-family homes is slowly but steadily improving, thanks to solid job growth, rising wages, low mortgage rates, improved access to credit and greater household wealth." But housing supply hasn't nearly kept up with demand in the U.S. Relatively tight housing inventory has allowed home prices to run rampant in recent months. The S&P/Case-Shiller U.S. National Home Price Index was up a comfortable 5 percent over the year and has exhibited similar annual gains over the last several months. The index is now as high as it's been since September 2007. It's worth noting, though, that thanks to an influx of investment into safe haven
2016 issue 7
assets like U.S. mortgage-backed securities, mortgage rates in America have plummeted and sit just off of historic lows. Money began flowing into such investments in earnest after the U.K.'s monumental decision to leave the European Union. And, as a result, there have been few times in recent history in which it's been more affordable to jump into homeownership or refinance an existing mortgage. "Financial markets reacted to the recent Brexit vote by pushing interest rates down further – which lowered mortgage rates as well," a team of researchers at Nationwide Economics wrote in a research note Monday, indicating that the housing market is being buoyed by "strong employment, low interest rates and positive household formation [a growing number of renters and homebuyers]." It's difficult to tell exactly how long these historically low interest rates will persist, especially if the Federal Reserve opts to raise its benchmark interest rate in September. But until then, more active home construction and persistently low mortgage rates are expected to make homeownership significantly more affordable for first-time buyers who don't have a home to sell.
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Builders Outlook
El Paso Development News
Builders Outlook 2016 Issue6 www.elpasodevnews.com
New Westside Tower Stirs Up Opposing Views By Armando Landin City Council has unanimously approved a rezoning change that will allow the 22-story Shadow Mountain development in West El Paso to proceed. In a special meeting held solely to consider the project on July 19, 2016, City Representatives heard from members of the community on both sides of the issue, those supporting and those opposed to the tower. Meyers Group of Florida, which also has an El Paso office, proposed the project in April. The $100+ million project will raise a mixed-use tower at 201 Shadow Mountain Drive, just east of the Sunland Park Drive/North Mesa Street intersection. The existing Coronado Tower is nearby.
Canyons at Cimarron Bringing 'Casual Lifestyle' Shopping Center to West El Paso
By Armando Landin A new, "casual lifestyle" shopping center is headed to West El Paso and will be located in the Cimarron master planned community. The Canyons at Cimarron will be an open air, walkable center which will
ndividuals in support of the project highlighted the enormous private investment in El Paso and expected corresponding economic boost, while those opposed argued that the tower would obstruct views and increase traffic. Though no concrete construction timeline has been revealed, the Meyers Group has already purchased the property. City staff has indicated the majority of construction will be completed by 2019. The tower will include apartments, hotel units, a parking garage, and ground floor retail.
include 92,000 square feet of space for retail, restaurant, and office uses. This mixed-use development will also include an adjacent apartment complex. The development is located at the corner of Resler Drive and Paseo del Norte Drive. According to the project site plan, The Canyons will consist of main streets lined with shop and restaurant buildings, meeting at a roundabout which will also abut the apartment area. Parking will largely be located behind the buildings, though angled street parking will also be available.
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There will be a total of 575 parking spaces throughout the center. Bicycle and pedestrian paths will connect adjacent Cimarron neighborhoods to the center, which will have several shaded seating areas. A designated childrens' play area is also part of the design. The Canyons is part of a recent surge of planned retail projects in the area, with the highly anticipated West Towne Marketplace planned just a quarter mile to the west. Nearby residents currently have relatively few retail options east of Interstate 10. Despite lots of acreage dedicated to
retail in nearby areas, including along Transmountain Drive to the north, construction has largely been dedicated to industrial, office, and residential uses. That could change with a larger office/professional presence nearby, such as the ADP expansion and Sierra/Providence hospital still under construction. Both are highlighted by a brochure for The Canyons at Cimarron. EP Riverbend Development of El Paso is the developer behind the project. No construction timeline has been disclosed for the project.
www.elpasodevnews.com
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Builders Outlook
Expert Advice Editor’s note: We’ve asked our member the Dorian Construction Group to share some thoughts on how to cool off during this hot summer with a pool. As with any construction job planning is key and getting a qualified contractor to do the work is essential.
It is now officially HOT in El Paso, perfect time to consider many beautiful options as far as your backyard living space is concerned. Building a new pool has never been easier with stunning graphic animated design work now available to you, Turing your perfect back yard dream into a stunning animated visual reality. There are entry level pools starting at around $20,000 that can include a beautiful free formed pool, 4' of diameter decking, permits, pump and filter. You can also add a heater and 5 man Jacuzzi to the design for somewhere in the $6,000 range. You see the investment you make in a pool today is available to most everyone. Pool and back yard living design have also turned high end by
2016 issue 7
Enhance your backyard with a professionally designed pool incorporating hand carved waterfalls with slides, stunning grottos and accent boulders, swim up bars and stools, outdoor designer kitchens, fire places and comfy fire pit seating areas. If you already have an existing pool, the possibilities now exiting of “transforming" your exiting pool into a breath taking tropical Laguna styles pool, complete with waterfalls, slides and exotic “Kool” decking. Another summer fad hitting The Sun City this year are "spools”. Spools are large scaled spas /small pools...hence the name. You can have a basic Spool design build with surrounding deck work and accent landscaping, or you can choose to have and exotic Laguna Spool built for you complete with a hot / cold pouring waterfall, accent boulders with palm trees and tropical plants, the possibilities are truly endless. To complement whatever pool / spool or existing pool transformation option you choose to get, consider having a designer outdoor kitchen and fireplace combination added to it so as to complete your beautiful entire backyard creation in its entirety.
If at any point none of these suggestions work for you but you are still looking to enhance your back yard, consider adding a beautiful custom built and designed koi pond and waterfall creation, they truly are
amazing addition to any home environment, as well as therapeutically and visual pleasing. Most ponds are designed and built in just a few days, and the different sizes and shapes, along with the added waterfalls and accent foliage, are truly endless No matter what your budget is and what type of water feature you want a professional pool designer and contractor is your first step. Designs are limitless today and the ability to bring a little tropical get a way in your backyard is waiting. Take the time to consult a professional when doing your pool. It will save you money in the long run. -Miguel Angel Mercado The Dorian Construction Group
BUILDERS: Are you searching for customers who are searching for a new home?
2016 Issue 7
Association News & Events
13
Builders Outlook
If you have an event or meeting that you would like to share with EPAB members, please submit your information to: margaret1@elpasobuilders.com
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AUGUST 3-4 SUNBELT BUILDERS SHOW GAYLORD TEXAN GRAPEVINE, TX AUGUST 10 BOARD/GENERAL MEETING BOARD 11:00 AM GENERAL 12:00 MARRIOTT HOTEL AUGUST 18 ENERGY CODE TRAINING 11 10:00AM H2O CENTER EP WATER UTILITIES
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14
Builders Outlook
Expert Advice
Joe Bernal
Employer Benefits of El Paso
Employers have compliance requirements to meet or face possible fines. Two of the newest compliance challenges are the employee reporting requirements of the Affordable Care Act and employee classification for overtime pay. While some of these compliance deadlines have passed for 2016, they should be on your calendar for 2017. Also, changes in employee exemptions are expected to be announced this year.
Employee Reporting Requirements
Applies to: Any employer classified as an applicable large employer (ALE) which employs 50 or more full-time workers or part-time equivalents. • What: Complete Form 1095-C for each full-time employee who has been covered under your health plan and is receiving minimum essential health coverage. File the forms with the IRS and send each employee a copy. This form lists the names, addresses and Social Security numbers of all employees and dependents who are
What’s New Water utility changes name and logo: We are unveiling a new name and logo. It's been a hot couple of weeks here in the borderland, but that didn't stop some of the staff from El Paso Water from standing under the hot sun to ask El Pasoans directly what they thought about the utility's new image. Some loved the old image, but most everyone agreed that the new name and image sets El Paso Water apart. "That's way more modern," said Erika Burnett with a smile. Her remarks came after acknowledging that the old logo was a little dated, and that it looked like something "from the 90s." Others whom we spoke to didn't recognize the utility's image altogether. Allow us to set the record straight — We are now, El Paso Water.
Associates Council
John Dorney
Associates Council Chair Everyone loves a good Parade of Homes and this year show was outstanding. The key to a successful Parade of Homes is to have beautiful homes, and the builders provided them.
2016 issue 7
Compliance Dates, Deadlines and Changes covered under your medical plan and the number of months during which they had at least one day of coverage. This is a lot of information to track, and employers that wait until the last minute to collect it might be unable to meet the deadline. We suggest employers track employees’ coverage consistently throughout the year. • When: By Jan. 31. Please note that the deadline this year was extended to March 31 for 2016. • What: Submit Form 1094-C to the IRS. This form is basically a cover sheet for the 1095-C and provides information about your company, number of employees, contact person and how many 1095-C forms are being sent. • When: The due date for mailing the 2015 Form 1094-B was changed from February 29, 2016 to May 31, 2016. If filing electronically, the due date was changed from March 31, 2016, to June 30, 2016. Applies to: Self-insured employers • What: Complete Form 1095-B, which is similar to Form 1095C. Forms 1095-B and 1094-B are sent out by the insurance provider rather than the employer. However, if you self-fund your health plan — regardless of the size of the company — you or your third-party administrator should send this form. This means self-insured companies with more than 50 employees must send covered workers both a 1095-B and a 1095C. In such cases, the law allows the employer to combine the information onto a single 1095-C form. • When: The due date for filing the 2015
Form 1095-B was changed from February 29, 2016, to May 31, 2016. If filing electronically, the due date was changed from March 31, 2016, to June 30, 2016. • What: Form 1094-B is essentially a cover sheet you or the insurance company use when sending the IRS information about employees who have health coverage that meets the standards of the ACA. • When: The due date for filing was changed from February 29, 2016, to May 31, 2016. If filing electronically, the due date was changed from March 31, 2016, to June 30, 2016. For EVERY form 1095-C or 1094-C that you do NOT file, you will receive a $250 fine — with a maximum total fine of no more than $3,000,000. Failure to provide a correct payee statement has the same fines for each missing form. The good news is that if you missed the deadlines this year, the IRS will not enforce penalties for reporting incorrect or incomplete information as long as you can prove you made a good faith effort to follow the 2015 reporting requirements. For more information, visit IRS.gov.
Employee Classification for Overtime Pay
Many employers will soon need to review their employee classifications to determine which employees now qualify as exempt from overtime pay requirements. The U.S. Department of Labor (DOL) proposed changes to the Fair Labor Standards Act (FSLA) overtime rules in June 2015. The proposed changes would
make the minimum salary for overtime eligibility equal to the 40th percentile of earnings for full-time salaried workers. Currently, employees who perform certain duties and earn more than $23,660 annually are exempt from overtime pay. The proposal increases the minimum salary for exemption to $47,892 a year based on 2013 data, and is estimated to become $52,440 a year in 2016. The DOL is expected to issue its final rule changing overtime pay exemptions this year. Employers covered by the FSLA include: • Federal, state, or local government agencies • Hospitals or institutions primarily engaged in the case of the sick, the aged, and the mentally ill or mentally retarded who live on the premises • Pre-school, elementary or secondary school or institution of higher learning (e.g. College) or a private or public school for mentally or physically handicapped or gifted children • A company/organization with annual sales volume or receipts of $500,000 or more. Employers should analyze their employee classifications because it’s expected these changes could make almost 5 million workers eligible for overtime pay as early as this year.
Water utility changes name and logo
The logo that has been the driving image of the utility for decades has been changed to reflect a more modern banner, one aimed at connecting a local and global community to the 21st century mission and vision of El Paso Water. President and CEO of El Paso Water John Balliew said the logo embodies El Paso Water's past, present and future. "This logo is simple, modern and easily recognizable. Along with a new name, the logo reflects our efforts to provide diverse and innovative water resources to a growing El Paso region," Balliew added. Art Quijano, fleet and maintenance superintendent said employees saw the new logo as "something different and less complicated." Additionally, he said part of his job is to educate the community on the
utility's modern makeover. "People have asked why and I tell them it's an inviting logo," Quijano said. "It's less complicated. They asked why the change, I explained to them it's more visual and more friendly." Our new and sophisticated logo prevents confusion around the role of our utility and our governing body, the Public Service
Board. It reflects multiple utility services— water, stormwater, wastewater and reclaimed water—united under one banner. The new, more modern banner positions us to more effectively engage in digital media and communications and better reflects our role as an international leader and innovator in water sustainability.
Associates make a diffference For the home builders, this sort of event brings together all the different industry professionals in the area, and allows them to mingle and bond over some good drinks. Members of the association get to spend the evening with other members they might not normally interact with. A huge Thank You to all the volunteers who helped man the ticket booth to make this year's Parade of Homes a success. We are always short staffed at this event so your help was greatly appreciated. Special thanks to all the volunteers from Ray and Margaret's family, for covering all unassigned shifts. On behalf of the Associate's thank you all for volunteering your time and talent to this year's event.
El Paso Disposal
772-7495
Builders Outlook
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2016 Issue 7
6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038
■ EXECUTIVE OFFICERS
PRESIDENT
Carlos Villalobos
NATIONAL ASSOCIATION OF HOME BUILDERS (800) 368-5242
VICE PRESIDENT Don Rassette
TEXAS ASSOCIATION OF
SECRETARY/TREASURER
BUILDERS
Kathy Parry
(800)252-3625
ASSOCIATES CHAIR
For All Your Electrical Needs Residential Specialists Tract Homes • Custom Homes
John Dorney
ECECUTIVE VICE PRESIDENT Ray Adauto
PAST PRESIDENT Edgar Montiel
Membership Retentiion Patrick Tuttle
Finance Committee Kathy Carrillo
Henry Tinajero
■ ADVISORY TO THE BOARD
Jay Kerr, Firth, Johnston, Bunn & Kerr
James Martinez, Law Office of James Martinez
2015 Builder Member Of The Year Edgar Montiel
Palo Verde Homes 2015 Associate Of The Year Interceramic Tile
Bradley Roe
Honorary Life Members Mark Dyer
Wayne Grinnell
Don Henderson
Chester Lovelady Cliff C. Anthes Anna Gill
Antonio Cervantes, BIC Homes
Brad Roe
Leti Navarrete, Dream Homes/Bella Homes
Walter Lujan, Dawco Home Builders
Jason Cullers, Cullers Homes
Samira Gonzalez, ICON Custom Homes Sal Masoud, DRE Development
Joe Bernal, Employer Benefits Of El Paso Linda Troncoso, TRE & Associates
Bret Thompson, Foxworth Galbraith Lumber Ted Escobedo, Snappy Publishing, LLC Patrick Tuttle, Legacy Real Estate Sam Trimble, Lone Star Title
Luis Rosas, HUB International Gilbert Pedregon, GECU
Gregg Davis, First Light FCU ■ TAB STATE DIRECTORS
Randy Bowling Greg Bowling
Sam Shallenberger ■ NATIONAL DIRECTORS
Bobby Bowling IV.
Demetrio Jimenez
Now more than ever, El Paso home buyers are planning for the future.
E H Baeza
Bud Foster, Southwest Land Development Services
Edgar Garcia, Bella Vista Cutom Homes
Give your customers the ‘option of the sun’
Rudy Guel
Robert Najera, Joseph Custom Homes
Leslie Driggers-Hoard, Homes By Design
915-208-9313 602-708-7560
2015 John Shatzman Award
■ BOARD OF DIRECTORS
Fernando Torres, CTU Metro Homes
Total Customer Satisfaction
Past Presidents
Committed to Serve
Greg Bowling
Kelly Sorenson Mark Dyer
Mike Santamaria
Bobby Bowling, IV Rudy Guel Anna Gil
Bradley Roe
John Cullers
Bob Bowling, III
Doug Schwartz
Hershel Stringfield
Randy Bowling Robert Baeza
Edmundo Dena Pat Woods
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. © 2015 Builder’s Outlook is published and distributed for the El Paso Association of Builders by Ted Escobedo, Snappy Publishing, LLC ted@snappypublishing.com El Paso • Texas • 915-820-2800
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