Builders Outlook 2018 Issue 12

www.elpasobuilders.com

National, State & Local Building Industry News 2018: Issue 12

Ushering in a new era

Association installs new leadership, recognizes 2018 member achievements

Member of the Year Edmundo Dena Everest Homes

The installation and recognition dinner was held at the Marriott El Paso on December 7 with an overflow crowd attending. The installation of 2019 President Sergio Cuartas, the Executive Leadership and Board was the official reason for the event. The EPAB has also used this event to congratulate members who have excelled at volunteering at the association.

The ceremonies started with Happy Hour presented by MTI Ready Mix. The bars were busy from the opening through the event.

Diamond partners this year included Sierra Title, Foxworth Galbraith, MTI Ready Mix, GCC, WestStar, Interceramic and United Site Services. Platinum partner was Rocky Mountain Mortgage, Gold Partner was Western Heritage Bank.

A year in review video was shown and many attendees could be seen chuckling and pointing out scenes. The video was dedicated to those family and members we lost during the year, including Past

Associate Member of the Year Angelique Roman Sierra Title

Chaney-Shallenberger Lifetime Achievement Award Henry Tinajero WestStar Bank

Presidents Mickey Schwartz and E. H. Baeza, Jr. In the categories of recognition Edgar Garcia, Sandra Lucero and Edmundo Dena were honored for their 100% attendance at board meetings.

Ray Adauto then began with announcing the Associate Member of the Year and that honor went to Angelique Roman from Sierra Title. “I am so honored and humbled with the award, and totally surprised,” Angelique said after getting the award.

The Chaney-Shallenberger Life Achievement Award was then presented to Henry Tinajero, WestStar Bank. “I had this feeling come over me when Sam was describing the winner and it sure sounded like he was talking about me,” Tinajero joked later. “Funny how you hear it and then when your name is announced you’re still surprised,” he added.

Member of the Year went to Edmundo

Life Member Sam Shallenberger Morrison Supply

Dena for his accomplishments during his second term. “I honestly want to let everyone know that this award is not a Mundo award, but one of the whole team,” Dena said. “We did a lot of things this year,” he concluded. The second term was highlighted with the growth of membership and the giving atmosphere Dena created. “I think he did a really good job and he will be remembered for a long time,” Sam Shallenberger said.

A surprise announcement was made that long-time member and Associates Chairman Sam Shallenberger would be inducted into Life Membership, an honor rarely bestowed. Before Sam there were only nine Life Members in the 72-year history of the association. “I am so humbled to be thought of this way, a really special honor. I know that this is the greatest honor I’ve ever been given in my life,” Shallenberger told the Outlook.

Randy Bowling, First Vice President of the Texas Association of Builders was called on to install the new board and leadership. The Board was installed and

2019 President Sergio Cuartas BIC Homes

then Randy installed the Executive team of Edgar Garcia, Sal Masoud, Luis Rosas and Edmundo Dena.

They remained on stage as 2019 President Sergio Cuartas took his oath. “I want to thank everyone but especially family,” Sergio told the audience while he mentioned his father, mother, wife and children. “I am grateful to be in the most wonderful country in the world, a place that gave me an opportunity,” he said in his acceptance speech.

Ray reminded the guest to save the date, Friday, December 6, 2019 for our next installation.

More photos Page 8 >

PRSRT STD U.S. POSTAGE PAID EL PASO TX PERMIT NO. 429

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Builders Outlook

2018 Issue 12

And the winner is...

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2018 Issue 12

President’s Message

Builders Outlook

Social Media & WeBSiTe conTenT ManageMenT e-Mail neWSleTTeRS

Edmundo Dena

President el Paso association of Builders

Another year draws to a close at EPAB

This is my last editorial as your President. i will enjoy stepping into the duty of immediate Past President for 2019. i’m very excited at where the leadership is and i’m sure that Sergio, edgar, Sal, and luis, working with a very excited board, will carry the association to more greatness.

We have done some great things together because after all, this is not a one-person association, it is all of us coming together. i have noticed some things this second time around. associations are quirky because we need it to be many things to many people. like in home building nothing ever comes in on schedule or per plan, and this year we didn’t accomplish everything we set out to do. We did do the major things, like the membership drive, the excellent golf tournaments, the little kids playhouse for the children’s Hospital Foundation, and the

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PRINT & INTERNET PUBLISHING

awesome response for Thanksgiving. The association was listened to at the state and national levels, and now i look forward to working with TaB 2020 President Randy Bowling even more closely. do not forget to engage your association and do not forget to help your fellow man.

When you do that then you will have made a difference. You become engaged. i am pleased and grateful with everyone that helped the association along the way this year. i get goosebumps knowing that we’re a great association because of who we are.

My year was made better by two people at the office, Ms. Margaret and everybody’s uncle, Ray. i will continue to serve as an active past president. You have honored me more than i can ever repay.

coMMUnicaTion STRaTegY ediToRial SeRViceS

Get Creative. Make it Snappy.

915•820•2800 www.snappypublishing.com

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Executive’s Message Ray Adauto, Executive Vice President EPAB

There’s always a way that things get done when you are surrounded by doers. So’s the case for our Association and the sometimes impossible made possible. Case in point is the work that was done to help feed families during Thanksgiving. You see it starts with Edmundo Dena asking Angelique Roman to help him feed five families. She says let’s do ten.

Then Brenda Aguirre is asked to help and all of the sudden some serious collections start. Dena had me send out an email and well the doers started doing. Over the next few days we were able to collect enough food for 53 baskets, one for each of the 53 families that got help from you. Terrific job to the three, and terrific job to all who contributed.

As the last of the baskets was delivered member Isabel Chacon

Builders Outlook

2018 Issue 12

‘Can do’ attitude caps off succesful year told me that it was challenging trying to find the right food for the families.

And she praised her mom because as Isabel said, “I always just showed up and ate, never thinking how much time, effort and thought went into that meal my mom made.” Yes, it does take time and effort, but when all said and done it’s because we love doing good things. I want to point out that other members had already given to other places and other needy families. I want to salute you also because you did that with love and thought. And shared the Blessing of the day.

Our installation and recognition were successful, and I want to thank the partners we had help from. All seven Diamonds, a Platinum and a Gold. Thanks for participating. To Randy Bowling thanks for doing the oath for incoming President Sergio

Cuartas and the board. I’d like to thank Margaret Adauto for all that she does, sometimes early in the morning or late at night, but always because she does a great job.

Recognitions went to Henry Tinajero, Angelique Roman, Sam Shallenberger, and Edmundo Dena.

All of these folks got a well-deserved pat on the back and bragging rights.

You have some outstanding examples of what it takes to get these recognitions, all boils down to “engagement”. These members went above the role of member and into the stratosphere of “engaged member”, doing what others couldn’t or wouldn’t. You have some examples in others, but you know these four. Are you going to be next?

Finally, I’d like to share something with you. I came across this in mid-

December, a website that lets you know what public employees and management makes in your community, the state, and the nation.

I caution you that what you’ll see may shock you but know that it comes down to you Mr. and Mrs. John Q Public. Do they deserve these salaries? In a lot of cases yes.

But I think you’ll really open up your eyes when you get to some of the positions and what they are paying.

I don’t malign the workers, but simply want to show you how some things can get way out of hand.

Especially from the taxpayers. www.openthebooks.com Read it and get informed.

National Builder News

2018 Issue 12

Most Americans Cite a Housing Affordability Crisis Nationwide and Close to Home

n Nearly three out of four American households believe that the nation is suffering a housing affordability crisis, and a majority of respondents reported this is a problem at their local and state level as well, according to a new nationwide survey conducted on behalf of the National Association of Home Builders (NAHB).

“These poll results confirm what builders from across the nation have been warning about—that housing affordability is an increasingly serious problem in communities across America,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “A mix of regulatory barriers, illconsidered public policy and challenging market conditions is driving up costs and making it increasingly difficult for builders to produce homes that are affordable to lowand moderate-income families.”

More than 2,200 adults were surveyed Nov. 27 through Nov. 30 to assess the public’s attitude on whether a lack of affordable housing is a problem in their neighborhoods, cities, states and nationwide.

The poll cut across partisan, regional, demographic and socio-economic lines.

Among its key findings: • 73 percent of all respondents believe that a lack of affordable housing is a problem in the U.S. • 68 percent believe this is an issue in their state and 54 percent cite housing affordability as a concern in their neighborhood.

• 58 percent said that if they decided to purchase a home in the near future, they would have trouble finding a home they could afford in their city or county.

• Breaking down by community types, 68 percent reported a dearth of affordable housing as a problem in urban communities, 64 percent said it was an issue in middleclass neighborhoods and 56 percent cited a problem in rural areas.

IIn terms of strategies to improve the lack of affordable housing, 55 percent believe it would be effective for their city or county to lower development and construction fees builders must pay so that more affordable units can be built and 53 percent believe it would be effective to increase government subsidies to builders to produce more affordable units.

The poll is also consistent with the latest findings from NAHB’s Housing Trends Report for the third quarter of 2018, which finds that 79 percent of buyers say they can afford to purchase fewer than half of the homes available in their local markets.

Nearly a third of America’s 119 million households are cost burdened and pay more than 30 percent of their income for housing, according to NAHB analysis of data from the Census Bureau’s 2017 American Community Survey. That number includes almost half of the nation’s renter households and a quarter of the owner households.

Regulatory requirements alone account for about 25 percent of the cost of constructing a single-family home and roughly 30 percent of the cost of a multifamily unit. And every day, builders grapple with increasing construction material costs, a shortage of skilled workers and a dwindling supply of developed lots.

Restrictive policies that limit or even prohibit various types of homes and make large areas off-limits to new construction contribute significantly to the problem.

“Housing is vital to the economic health of our nation,” said Noel. “This poll should serve as a wake-up call to policymakers at all levels of government to ease regulatory burdens that needlessly drive up the cost of housing and to enact policies that will encourage the production of badly-needed affordable housing units.”

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Mortgage & Banking

/www.marketwatch.com

In 2018, the housing market experienced its fair share of up and downs, attributed to many factors, including affordability and inventory concerns. But as the year comes to an end, homebuyers will be walking into 2019 with more pep in their step Last week, amid U.S. stock market volatility, mortgage rates

Builders Outlook

2018 Issue12

This is what the housing market could look like in 2019 finally edged down. In fact, Freddie Mac revealed mortgage rates retreated to 4.75%, according to its Primary Mortgage Market Survey.

Todd Probasco, Lakeside Bank’s vice president mortgage sales manager, said this retreat will be impactful..

“Interest rates hit 5% a month ago and rates have been going up for the last year, so that reduction is a big move in the market,” he said.

Probasco is not wrong.

Throughout 2018, both pending and home sales have fallen month over month.

Furthermore, homebuilder confidence continued to decline as interest rates proved to be a deterrence for many prospective homebuyers.

“Builders report that they continue to see signs of consumer demand for new homes but that customers are taking a pause due to concerns over rising interest rates and home prices,” National

Association of Home Builders Chairman Randy Noel said.

Despite these industry headwinds, Probasco said the recent decline in rates will create a competitive and attractive landscape for homebuyers.

Interestingly, Redfin reported that mortgage rates have driven migration from expensive coastal cities, increasing competition in affordable inland markets.

Probasco notes that going into the new year, housing market trends are likely to reflect similarities from 2018.

“For 2019, I expect to see a lot of similarities from 2018 into 2019,” Probasco said. “The majority of transactions in 2019 will be purchase, although there will still be some refinance.”

Interestingly, Probasco said there will also be an uptick in both home renovations and home equity lines of credit.

It’s worth noting that NerdWallet’s latest Home Improvement Report

revealed that from 2015 through 2017, Americans spent $449.5 billion on home renovation projects.

This number is likely to increase in the upcoming year as well.

“Mortgage rates have been rising for two years and lots of homeowners are locked into low rates they don’t want to give up by selling their current home, so they’re fixing up instead of moving up,” NerdWallet mortgage expert Holden Lewis said.

Overall, Probasco said going into 2019, homebuyers are likely to see slight increases in mortgage rates, but the current landscape of the housing market is favorable for homebuyers looking for a home. www.housingwire.com

2018 Issue 12

Economic Forescast

Elliot Eisenberg Economic & Policy Blog

With 155,000 net new November jobs, the labor market continues to perform well, but may be cooling. The unemployment rate held at 3.7% as folks continued joining the labor force, which is great, and wage growth was unchanged from October's solid 3.1%, suggesting wage inflation is in check. But, employment growth over the last three months is averaging 170,000/month, the lowest level in a year as finding employees becomes tougher.

Oil prices aren't spiking (which caused the 1973 and 1979 recessions), neither are interest rates (1981 and 1983 recessions). Better yet, banks aren't failing, nor is consumer confidence tanking (collectively helping cause the 1990 recession), nor are equity prices

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Builders Outlook

Dr. Eisenberg’s thoughts about things economic and corporate investment collapsing (2000 recession), and there's no mortgage-lending scandal (2008). But exports are weakening, corporate debt has ballooned, and China is decelerating. A slowdown, guaranteed, but no imminent recession.

Rates on two-year and threeyear Treasuries rose above the rate on the five-year Treasury, which probably lead to substantial algorithmic trading.

While this isn't a full-fledged yield curve inversion (YCI), which refers to the yield on the two-year Treasury exceeding the ten-year, this mini inversion isn't to be ignored, as it has generally been followed by a YCI. And a YCI has preceded each recession since the late 1960s.

Superficially, Great Britain looks good despite Brexit.

Unemployment is near a record low, wages are increasing at their fastest pace in a decade, and a huge budget deficit has shrunk. However, best estimates suggest UK GDP is 2% smaller than had voters chosen to Remain. Why? Labor force growth has shrunk from 1.2%/year to 0.4%/year, and investment in the UK has shrunk from 25% of all EU investment to 18%.

Builder confidence is at its lowest level since 8/16, housing starts peaked in 1/18, and building permits in 3/18. As for existing housing, sales peaked in 11/17, pending sales peaked in 4/16, prices are rising noticeably slower, inventories are rising, and affordability is

near a decade low. But job growth remains strong, incomes are up, and household formation is solid. Housing won't cause the next recession. It'll be something else.

And just for grins in 2018, US per capita egg consumption is expected to be 279. While some wind up in cakes, souffles and sauces, many are eaten by themselves. The preferred way: it's a tie between scrambled and fried, both chosen by 23% of egg eaters. Next comes poached at 22%, soft boiled is fourth at 11%, then hard boiled at 6%. Egg consumption peaked at 420 eggs/person in 1945.

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BUILDERS OUTLOOK • EPAB ON THE SCENE

2018 Issue 12

EPAB Installation (Continued from front page)

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Foundation honors Shallenberger Congratulations to Sam Shallenberger who was crowned the ‘Top Knot’ at the Rio Grande Cancer Foundation’s Blue Tie Guy Celebration. Sam was one of 16 men who were chosen to promote awareness about men’s cancers and fundraise for the foundation. Sam proudly wore his blue tie during the campaign and is commited to continuing his work on the board of directors at the Rio Grande Cancer Foundation.

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#Real Texas builders

Builders Outlook

2018 Issue 12

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The El Paso Association of Builders encourages you to work with our members.

Builder members as of September 1, 2018 Bain Construction Scott Bain Althon Investments, LLC Jose Luis Martin Bella Vista Custom Homes, Inc. Edgar Garcia BIC Homes Antonio Cervantes Blue Sage Homes, LLC Jaime Gonzalez Blue Star Construction Carlos Villasana Bowling Construction Randy Bowling Carefree Homes Richard Aguilar Casas De Leon, LLC Nick Bombach Cisco Homes LLC Francisco Arroyos III Classic American Homes Priscilla Hernandez Crown Heritage Homes Lydia Mlouhi Cullers & Caldwell Builders John Cullers Cullers Homes Jason R. Cullers D B Innovations LLC Dan Berry Dawco Home Builders Walter O. Lujan Deal 2 Deal Custom Homes Delton Deal Del Rio Engineering, Inc. Sal Masoud Diamond Homes, LLC Valerie Baquera Donald Ward Builder, Inc. Donald Ward E. Valencia Land Development LLC Eddie Valencia Eclat Homes & Designs Veronica Guerra Edward's Homes, Inc. Eduardo Fernandez EPT Bella Custom Dream Homes Leti & Javier Navarette EPT Land Communities David Bogas Everest Homes Edmundo Dena, Jr. Fortune Custom Homes Javier Andrade Gaddy Construction Charles Gaddy GMF Custom Homes, LP Frank Torres Guel Construction Rudy Guel Hakes Brothers, LLC Chris Hakes Hanson Asset Management, LP Russell Hanson Homes by Design Leslie Driggers Hoard Hunt Communities, LLC Kathy Parry ICON Custom Builder, LLC. Carlos Garcia Industrial Realty Group Incorporated Brent D. Harris JER Custom Homes, LLC Jorge E. Rodriguez Kayton Lee Residential, Inc. Brianna Barnes Lloyd Hamilton Contruction Lloyd Hamilton, III LMJ Construction Co., LLC Mike Lopez Loyalty Homes Gustavo Loy M A Builders & Design, LLC Mustafa Ali Maravilla Homes Victor Robles Medlock Commercial Contractors LLC Steve Medlock Metro Homes, Inc. Judith Arrunada, Fernando Torres

Millennium Homes Dan Ruth Pacifica Homes, Inc. Juan Jose Vasquez Padilla Homes Misael Navarrete Palo Verde Homes Edgar Montiel Pointe Homes Carlos Villalobos Porter Homes Albert Porter R.C. Baeza & Associates Robert C. Baeza R.E. Welch Contractor Gordon Welch Rassette Homes, Inc. Donald Rassette Rosewood Design and Build Brianna Barnes Santana Custom Homes Fernando Santana Southwest Land Development Serv.

Doug Schwartz Spanish Oaks Custom Homes Juan R. Saenz The Heritage Group David Bingham Trejo Construction Co. Juan Trejo Tropicana Building Corp.

Bobby Bowling IV Tropicana Development Greg Bowling Tropicana Homes Randy Bowling Tropicana Properties Demetrio Jimenez Vallance Construction LLC Oswaldo Prieto Villagi Homes, LLC Kristi Eddings Vista del Sol Archetectural Design Luis J. Lopez Will Harvey Development Will S. Harvey Winton/Flair/Accent Homes Herschel Stringfield Associate members as of September 1, 2018

150 Sunset Danny Heredia 2-10 Home Buyers Warranty James Hebert 4 Tech A/C Service Enrique Hernandez 84 Lumber Ernie Chavez 915 Siteworks, LLC Hugo Jasso A C Refrigeration, LLC Angel Cabrera A Plus Remodeling & Repairs Martin Arroyos ABC Supply Co., Inc. Larry Eck Acme Brick Company Steve Bush Adams Moulding & Lumber Tom Swahlen Agustin Favela Concrete Agustin Favela Alden R & R Services, LLC Alejandro Dena Allbrite Electrical Carlos Nunez Alvarado Plastering & Stucco, LLC Jose Enrique Alvarado Amelia's Janitorial Services Amelia Gomez Area Iron & Steel Works, Inc. Fred L. Edmonston Jr. Atrium Homes Ricardo Bocardo Jr. Bank of Texas Ray Owen Baron Supply David Trammell Barragan & Associates Benito Barragan

Barraza Drywall Corp.

Ignacio Barraza Barrett Airworks Alexandro Castro Bassett Woodworks Danny Murillo Beasley, Mitchell & Co., LLP Brad Beasley Bella Vista Realty Grisel Ortega Belmont's Air Conditioning, Inc. Rafael Belmonte Big A Construction Thelma Vasquez BMC Select David Quintana Boise Cascade Mike Flores Border Construction Specialties Ricardo Yvellez Border Solar Javier Ruiz Bordertown Carpets Brian M. Abraham Builders Source Appliance Gallery Sandra Lucero Bukaty Financial Companies Group Ruth Rivera C. D. Lee/Britton Insurance & Bonding Anthony Landavazo/Lisa Daniels Cabinet Masters Mike Robles Carpet Warehouse Erez Belkin Casa Ford & Casa Nissan Luke Lowenfield Castillo Electric Jose Del Val CEA Engineering Group Jorge L. Azcarate Central Texas Metal Roofing Supply Co.,Inc. Ben Garza, III Centricity Brent R. Morgan Century 21 The Edge Scott Kesner Citizens Loan Center Jim Easley City Bank Texas Bob Kotarski City Lights Thomas Brown CMF Carlos Munoz Cognent, Inc. Martin Paredes Commercial Insurance Brokers, Inc. Ken Foster Conde, Inc. Conrad Conde Copenhagen Imports Flemming Carlsen CQC Testing and Engineering,LLC Jaime Rojas David Hernandez Cabinets David Hernandez David J. Ellis Fee Office for Sierra Title David J. Ellis De La Torre Iron Works Alfredo de la Torre Delek US dba 7 Eleven Sonja Scanlan Demcon Disposal Management, LLC Maria Elena (Nena) Gomez Desert Quest Plumbing Hector Gonzalez Designer's Mart Valerie Edmiston Diaz Services, Inc. Emmanuel Diaz Dominguez Insurance Agency Victoria Dominguez Doors and More Miguel Moran Dorney Security John Dorney Dunn-Edwards Paints Nathan Gordon DWS Building Supply Sabrina Voorhies E.F. Building Materials, Inc Efren Fraire

Eagle Custom Cabinets Juan Benabidez Eagle Roofing Products Scott Aguilar Edgar's Flooring Edgar Enriquez EDLR Platering Eduardo De La Rosa Edmund Esper Edmund Esper El Paso Audio Video by Design Joe Gutierrez El Paso Building Materials Ken Wade El Paso Disposal Irma Parsons El Paso Mortgage Bankers Association Gilbert Pedregon El Paso Times Sal Hernandez, Justin Riley El Paso Truss Luis Mendiola El Paso Winnelson Rene Goldfien Electrolux NA Adger Colley Elizardo Garcia Electric Elizardo Garcia ERA Sellers & Buyers Karla Reyes ESS Environmental and Safety Solutions Jose L. Garcia Ramirez EZE-R-DESIGNS Leticia Mata Farmers Ins.-Mercedes Ruiz Mercedes Ruiz Felipe Rocha Construction Felipe Rocha Ferguson Enterprises Inc. Albert Holguin Fire Smoke N' Grill Bill Owen First American Bank Louis Sauceda First Light Federal Credit Union Lorenzo Revelez First National 1870 Haley Merritt Firth, Johnston, Bunn & Kerr Jay Kerr Forge Factory Strength & Conditioning Edmundo Portillo Foxworth Galbraith Lumber Dan Villarreal Franklin Building Materials Ricardo Aguilar or Cristina Sheldon G & G Enterprises Gen. Contractor Juan F. Garcia G2 Ram Electric Luis Cano GCC Sun City Materials,LLC Antonio "Tony" Chavez GE Appliances Christine R. Villanueva GECU- Greater El Paso Credit Union Danny Galindo GEPAR-Greater El Paso Assoc. of Realtors Jason Sanchez Go Pro Refrigeration Humberto Diaz Goodman Mfg. Jorge Guajardo Great American Insurance Group Julie Tomlinson Greater El Paso Chamber of Commerce David Michael Jerome H P Roofing & Construction Heriberto Prieto Harris Real Estate Group Lane Harris Haskins Electric Charles B. Haskins, Jr. Hector De.La Canal Real Estate Group Hector De. La Canal Hector Phillips fee Office for Sierra Title Hector Phillips Hercules Industries John Chaney Hernandez Roofing Concepcion Hernandez Home of Texas Amanda Eason

2018 Issue 12

Home Pros Real Estate Group Penny Moore Homes of El Paso Riley Stephens HUB International Luis Rosas Imperial Construction Alexandro Garcia Inter National Bank Natalie Ojeda Interceramic Tile & Stone Gallery David Holguin J & H Concrete & Post Tension Jorge Herrera J. B. Laminates Gina Rodriguez J. C. Balcorta Painting Cruz Balcorta J. F. Plastering Juan Florez Jack White Building Specialties Claudia Lardizabal James L. Ellis, CPA, PC Jim Ellis JFM Enterprises, Inc. Jaime Flores Jimmy Garza Emergency Water Removal Jimmy Garza Jobe Materials, LP Charlie Tellez Joe Bernal Insurance & Financial Services, Inc. Joe M. Bernal Jose Moreno Dry Wall Jose Moreno Juan Carlos Perez Grading Juan Carlos Perez Keenan Supply Nancy Rivas Keller Williams Mo Goodarzi Keller Williams Susan Flores L & P Building Supply Denise McConnell LCR Resource, Inc. Ralph Sanchez Legacy Real Estate Services/TTi Prop. Man. Patrick Tuttle Leon Real Estate Jorge Leon LOI Engineers Bernardino Olague Lone Star Title Co. of El Paso Sam Trimble Love Engineering, Inc. Montez Love Lowes Home Improvement Johnny Rodriguez Loyas Shutters Alfredo Loya MagicStone Marco Gomez Majestic Realtors Patti Musshorn

Builders Outlook

MAK Roofing & Construction Felix Vizarreta Marlo Building Services Roberto Martinez Masco Contract Serv dba Gale Insul William Homan Massey Johnson Josie Ledesma McCoy's Building Supplies Doug Danner Merrill Lynch Thomas Gabriel Miguel Sanchez Cano Miguel Sanchez Cano Minerva Al-Tabbaa Realtor Minerva Al-Tabbaa Mini Concrete Materials Joe Soto Moen Frank Graf Monster Link Marketing Raul Mendoza Moreno Cardenas, Inc. Roberto Moreno Morrison Supply Sam Shallenberger MTI Ready Mix, Inc. Tony Mullen New American Funding Tania Guzman New Era Foam George Tollen New Start Insulation Jose Carreon Oropeza Concrete Angel Oropeza Parra's A/C and Heating Service Aureliano Parra Pate & Appleby, LLP Richard De Santos Patriot Mortgage Randy Bowling Pella Windows Jason Bates Performance Glass & Aluminum Hector Hernandez Perl Mortgage Stephen Sepulveda, Gilbret Pedregon Polar Mechanical LLC Francisco Amezquita Post Tension Steel Dennis Moore Powerfoam Insulation Arnie Pedersen Prewire of El Paso, Inc. Steven Drury Pride industries dba Pride Ascend Dr. Lonny Wright Q Martins Plumbing Jose Martinez Quality Granite Hector Porras Ramon Romero Painting Ramon Romero

Randall Smith, CPA Randall Smith Rebath of El Paso/Las Cruces Lisa Walling Remcon Self Storage Will Harvey Rey Construction Manuel Reyes RGR Roofing, LLC Marco Rodriguez Richman Group Affordable Housing Corp.

Kevin Hoffman Rito Magallanes Rito Magallanes Rocky Mountain Mortgage Company Dean Inniss Roe, Brad Bradley Roe Rudolph Chevrolet Mike Ruffin S & J Drywall, LLC Yair Jalil & Sergio Jalil Saldivar Electric, Inc. Martin A. Saldivar Sarabias Blue Sanitation Monica Brown SBNG, P.C. Tyler Smith Segura Framing Erika Segura Senercon Javier Ruiz Senpai Training and Development Leonardo Corral Sergio Herrera Framing Sergio Herrera Serrano's Construction Juan Serrano Service Master Commercial Heidi Avedician Sherwin Williams Paint Cruz Lopez Sierra Title Company /Lawyers Title Angelique Roman, Marielsa Pulido Simpson Strong-Tie Company, Inc. Ken Donham Snappy Publishing Ted Escobedo Soil Mechanics Lorenza Escareno Solar Smart Living Larry Perea Southwest Décor El Paso Corporation Chris Matthews Southwestern Prewire Joe Trejo Spectrum Technologies Miled Daou St. Mary's Custom Shutters Dolores Lopez Startech Heating and Air Conditioning Luis Procter Stewart Title of El Paso Cindy Bilbe

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Stone City Rocks Chris Baca StrucSure Home Warranty Scott Whisenant Su Casa Magazine Bob Skolnick Supreme Lending Lisa Wren Sun City International Doors Jorge Carmona Sun City Spray Foam Fred Reynolds Sun City Winnelson Dean Moore Sun West Windows and Glass Ernie Hernandez Texas Gas Services Mica Short Texas Title Company Steve Raney TFCU Yolie Melendez-Estrada The Dorian Group/Ocean Gallery USA Miguel Angel Mercado The Home Systems Heating & Cooling, Inc. Jesus Chain The Iron Snail Inc. David Zuniga Trane Residential Solutions Robert Meske/ Kathleen Chacon TRE & Associates Linda Troncoso Trim Team Juan & Kris Hernandez USA General Contractors Javier Olmos United Site Services Ramon Armendariz Value Stone Isabel Chacon Vision Consultants, Inc. Kelly Sorenson VMP Painting Victor Prieto W.W. Sales Eric Hoppes Western Heritage Bank Kathy Carrillo WestStar Home Loans Cinco Houghton WestStar Bank David Osborn WestStar Title Rachel Valles Whirlpool Gwen Walker Wolf Air Arturo Alcantar X Construction Emmanuel Chavarria

$299.99 plus tax $699.99 non-members plus tax

Introducing the NEW Texas Association of Builders Model Construction Safety Program & Jobsite Safety Standards Package© (Model Safety Plan) Version 4.0.

Texas Association of Builders

Model Construction Safety Plan The NEW plan includes the addition of recent OSHA requirements such as: Permit Required Confined Spaces Crystalline Silica Standards Access to the previous version of the Model Safety Plan is no longer available. To purchase the new online Model Safety Plan Version 4.0, visit TexasBuilders.org.

This plan is available to TAB members for only $299.99 (plus sales tax).

You will receive: • TAB’s Model Construction Safety Program & Jobsite Safety Standards Package© that includes a User Guide and the Model Safety Plan.

• Access to a new webinar that will train you and your employees on the use of the Model Safety Plan.

• Upon completion of the webinar, a Certificate of Completion stating that you have completed the webinar that provided you with detailed information on developing your company’s safety plan using TAB’s OSHA-reviewed Model Safety Plan. Please watch to the end of the webinar for instructions on obtaining your certificate.

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Builders Outlook

2018 Issue 11

The El Paso Association of Builders proudly announces our 2018 Award Winners and 2019 President

Member of the Year Edmundo Dena Everest Homes

Associate Member of the Year Angelique Roman Sierra Title

ChaneyShallenberger Lifetime Achievement Award Henry Tinajero WestStar Bank

Life Member Sam Shallenberger Morrison Supply

The El Paso Association of Builders has served as the collective voice for the home building industry in El Paso since 1946.

Our members are home builders, land developers and associate members who work to advance the home building industry at the local, state and national levels.

For more information visit: www.elpasobuilders.com El Paso Association of Builders • 6046 Surety Drive • El Paso • Texas • 79902 • 915-778-5387

2019 President Sergio Cuartas BIC Homes

2018 Issue 12

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Builders Outlook

6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038

Upcoming Events

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14

Builders Outlook

In the Nation nahb.org

Confidence in the multifamily housing market weakened in the third quarter, according to results from the Multifamily Market Survey (MMS) released today by the National Association of Home Builders (NAHB).

The MMS produces two separate indices: The Multifamily Production Index (MPI), which dropped three points to 48 compared to the previous quarter; and the Multifamily Vacancy

Home Builders Mourn the Passing of President Bush

Randy Noel, chairman of the National Association of Home Builders (NAHB) and a custom builder from LaPlace, La., issued the following statement on the passing of President George H. W. Bush: “On behalf of all the members of NAHB, I wish to extend my deepest condolences to the Bush family.

President Bush was an American war hero, a great statesman and an American patriot who embodied the ideals of our nation.

“He was also a true believer in housing. President Bush hosted the NAHB Board of Directors on the South Lawn of the White House to commemorate the association’s 50th anniversary. He said that ‘strong housing can help a strong economy’ and ‘the dream of homeownership keeps the American dream alive.’

“To make these words a reality, President Bush pushed vigorously for policies to ensure that housing would help boost the economy. He championed a $5,000 tax credit for first-time home buyers, called for penalty-free withdrawals from IRAs for the purchase of a first home, urged changes in the passive loss tax rules to spur real estate and housing development, and called for an extension of mortgage revenue bonds and the low-income housing tax credit.

“President Bush summed up the importance of a strong housing industry to America when he said: ‘The old adage is coming true: As housing goes, so goes the economy.

Owning a home helps America, makes it better, and more caring.’

“The nation’s home builders salute his legacy of a lifetime of servic

2018 Issue 12

Multifamily Builder, Developer Confidence Weakens Index (MVI), which rose two points to 47 compared to the previous quarter.

The MPI measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0 to 100. The index and all of its components are scaled so that a number above 50 indicates that more respondents report conditions are improving than report conditions are getting worse.

The MPI is a weighted average of three key elements of the multifamily housing market: construction of lowrent units—apartments that are supported by low-income tax credits or other government subsidy programs; market-rate rental units—apartments that are built to be rented at the price the market will hold; and for-sale units—condominiums. The component measuring low-rent units increased two points to 59, while the component

measuring market rate rental units fell four points to 46 and the component measuring for-sale units dropped seven points to 39.

The MVI measures the multifamily housing industry's perception of vacancies. It is a weighted average of current occupancy indexes for class A, B, and C multifamily units, and can vary from 0 to 100, where any number over 50 indicates more property managers report more vacant apartments. A reading of 47 is the highest since the first quarter of 2010.

“We are starting to see an increase in vacancy rates, which may indicate a saturation in the luxury apartment market” said Steve Lawson, president of The Lawson Companies in Virginia Beach, Va., and chairman of NAHB’s Multifamily Council. “Rising regulatory and construction costs are also affecting developers’ ability to build

apartments for the ‘middle-income’ market where housing is greatly needed.”

“The drop in the MPI is consistent with affordability concerns that have emerged in the single-family market.

Both sectors of the housing market face similar challenges, such as shortages of labor and increased regulatory costs,” said NAHB Chief Economist Robert Dietz. “This quarter’s MPI is yet another signal to policymakers that they should be paying more attention to housing market conditions as interest rates increase.”

Historically, the MPI and MVI have performed well as leading indicators of U.S. Census figures for multifamily starts and vacancy rates, providing information on likely movement in the Census figures one to three quarters in advance.

Builders Outlook

2018 Issue 12

6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038

772-7495

Luis Rosas, HUB International Brenda Aguirre, Rocky Mountain Mortgage Sandra Lucero, Builders Source Ted Escobedo, Snappy Publishing Jorge Herrera, J&H Post Concrete & Post Tension Angelique Roman, Sierra Title Patrick Tuttle, Legacy Real Estate Sam Trimble, Lone Star Title Patricia Martinez, Stewart Title Randall Smith, Randall Smith, CPA

â– ExEcutivE OFFicERS PRESiDENt Edmundo Dena vicE PRESiDENt Sergio Cuartas SEcREtARY Edgar Garcia ASSOCIATES VICE PRESIDENT Sam Shallenberger ExEcutivE vicE PRESiDENt Ray Adauto PASt PRESiDENt Don Rassette

■tAB StAtE DiREctORS Randy Bowling - Life Director Sam Shallenberger Edmundo Dena

â– cOMMittEE cHAiRS Membership Ted Escobedo Patrick Tuttle

â– NAtiONAL DiREctORS Bobby Bowling, III Demetrio Jimenez Leslie Driggers Hoard -Alternate Antonio Cervantes - Alternate

Finance committee Kathy Carrillo/Treasurer Henry Tinajero

Honorary Life Members Mark Dyer Wayne Grinnell Don Henderson Anna Gill Brad Roe Rudy Guel

Community Outreach Angelique Roman Brenda Aguirre Patricia Martinez

Land Use Council Sal Masoud

Education Kelly Sorenson Delton Deal

■ADviSORY tO tHE BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr

■BOARD OF DiREctORS Builders: Delton Deal, Deal 2 Deal J.J. Vasquez, Pacifica Homes Leti Navarrete, Bella Custom Dream Homes Bud Foster, Southwest Land Development Kathy Parry, HUNT Communities Lee Gillett, Classic American Laura Loy, Loyalty Homes Walter Lujan, Dawco Homes Fernando Torres, Metro Homes Leslie Driggers Hoard, Homes by Design Carlos Garcia, ICON Custom Sal Masoud, Del Rio Development Fernando Santana, Santana Custom Homes Associates: Joe Bernal, Joe Bernal Insurance Henry Tinajero, WestStar Bank Kathy Carillo, Pioneer Bank John Chaney, Hercules Industries

El Paso Disposal

Past Presidents committed to Serve Edmundo Dena Edgar Montiel Frank Torres Frank Arroyos Greg Bowling Randy Bowling Bobby Bowling IV Doug Schwartz John Cullers Robert Baeza Mark Dyer Kelly Sorenson Rudy Guel Brad Roe Herschel Stringfield Bob Bowling III Pat Woods Carlos Villalobos

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. Š 2018 Builder’s Outlook is published and distributed for the El Paso Association of Builders

by Ted Escobedo, Snappy Publishing, LLC

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