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2014: issue 5
The Economy Freddie Mac: Only 2 in 5 Housing Markets are Improving Freddie Mac's new Multi-Indicator Market Index (MiMi) continues to show a weak housing market overall. The national MiMi value is flat compared to last month and has improved only slightly year-over- year. MiMi monitors and measures the stability of the nation's housing market, as well as the housing markets of all 50 states, the District of Columbia, and the top 50 metro markets. MiMi combines proprietary Freddie Mac data with current local market data to assess where each single-family housing market is relative to its own long-term stable range by looking at home purchase applications, paymentto-income ratios, proportion of on time mortgage payments in each market, and the local employment picture. These indicators are combined into a composite MiMi value for each market. The MiMi value ranges between -12 and 12 and helps determine if a housing market is Weak, In Range, or Elevated relative to its own stable range of housing activity and whether the market is trending toward or away from that range A market can fall outside its stable range by being too weak to generate enough demand for a wellbalanced housing market or by overheating to an unsustainable level of activity. The MiMi for March stands at -3.06 point, a 0.03 point improvement from February. The three month trend for March is +0.05. That value must move
Get ready for the subprime mortgage crack-up 2.0
By Edward J. Pinto | Real Clear Markets In 1991 community advocate Gail Cincotta, in testimony before the Senate Banking committee stated: "Lenders will respond to the most conservative standards unless [the GSEs] are aggressive and convincing in their efforts to expand historically narrow underwriting." The next year Congress imposed affordable housing mandates on Fannie Mae and Freddie Mac. Over the next 15 years the Department of Housing and Urban Development (HUD) forced the abandonment of traditional underwriting standards, which led to an
by at least one-tenth of a point or the associated directional trend for that market's three month period is considered flat. On a year-over-year basis, the U.S. housing market has improved by 0.66 points. The nation's all-time MiMi low of 4.49 was in November 2010 when the housing market was at its weakest. Most of the states and metro areas are called "weak and flat" or "weak and declining" in the MiMi narrative. Ten of the 50 states and the District of Columbia are in their stable range as are four of the 50 metro areas. The top five states are North Dakota, Wyoming, the District of Columbia, Alaska, and Louisiana, all unchanged from last month and the four metros are San Antonio, New Orleans, Austin, and Houston. The states that were most improved from February to March were Ohio, Rhode Island, Illinois, Texas, and South Carolina while those that improved the most from March 2013 were Florida, Nevada, South Carolina, California, and Texas. Improved metros on a monthover-month basis were Cincinnati, Columbus, Houston, Riverside, and San Antonio while year over year they were Miami, Orlando, Las Vegas, Tampa, and Riverside. Freddie Mac notes that most of the markets that are improving or in a stable range are areas currently in the midst of an energy boom. Overall, in March, 13 of the 50 states plus the District of Columbia are
improving based on their three month trend, and 20 of the 50 metros show an improving trend. Freddie Mac Chief Economist Frank Nothaft said, "Less than half of the housing markets MiMi covers are showing an improving trend, whereas at this same time last year more than 90 percent of these same markets were headed in the right direction. We're hopeful that many of these markets that have stalled will start moving again now that mortgage rates have eased over the
past month and the spring home buying season is upon us. House price gains are a double-edged sword at this stage of the recovery. They help those hard-hit markets where prices are still low and many homeowners are underwater, but in areas where supply is constrained, they're creating an imbalance and pricing out many first-time homebuyers." The National Mimi and interactive indices for each of the states and metro areas can be accessed at http://www.freddiemac.com/mimi/.
accumulation of an unprecedented number of weak and risky non-traditional mortgages. The collapse of housing and mortgage markets, and the ensuing Great Recession, may be directly traced to those events in the early-1990s. Earlier this month the following headline appeared in the Wall Street Journal: "U.S. Backs Off Tight Mortgage Rules: In Reversal, Administration [HUD/FHA] and Fannie, Freddie Regulator Push to Make More Credit Available to Boost Housing Recovery." Clearly memories as to the causes of the recent housing market collapse are short. Indeed, political pressures are once again increasing on the private sector to degrade sound lending practices. The headline refers to two policy statements made May 13, one by Mel Watt, director of the Federal Housing Finance Agency (FHFA), and the other by Shaun Donovan, secretary of HUD. The FHFA is the regulator of Fannie Mae and Freddie Mac, which along with the Federal Housing Administration (FHA) are responsible for guaranteeing about 75 percent of all mortgage credit in the United States. Watt announced a course reversal from his predecessor Edward DeMarco. One of his most significant moves was the alignment of FHFA's policies -- with respect to discouraging private sector discretion in adhering to strong underwriting standards -- with those of
the FHA. Watt warned lenders and private mortgage insurers that "credit overlays result in the rejection of many loans that would otherwise meet [Fannie Mae and Freddie Mac] credit standards." This echoes FHA Commissioner Carol Galante's 2013 statement: "[L]ender overlays are damaging the recovery by limiting access to creditworthy borrowers." The parallels to Cincotta's statement are unmistakable: regulators must convince lenders and private mortgage insurers to stop utilizing more conservative standards than allowed by government agencies. Why do policymakers want to force the private sector to originate easy credit loans? First is the desire to use easy credit to juice an anemic economic recovery. Yet we have already had 6 years of the lowest interest rates in generations, combined with already loose lending standards. The result has been increasing home prices in concert with stagnant incomes, leading to reduced affordability, particularly in places like California. Second is to expand access to "creditworthy borrowers." This statement is duplicitous. The real goal is to get the private sector to originate more loans to sub-prime borrowers with credit scores below 660 or pre-tax debt-to-income ratios above 43 percent, and to nonprime loans to borrowers with tiny down payments. This is a continuation of a fifty-
plus years housing policy based on using ever greater leverage in a futile attempt to expand homeownership by helping unqualified borrowers buy homes. This leverage has taken the form of reduced down payments, higher debt ratios, extending loan terms to 30 years, and credit to those with impaired credit histories. This policy failure is evidenced by a stagnant homeownership rate which today stands at 62 percent (excludes owners with seriously delinquent loans), the same rate as in 1960. Yes, the rate did hit 69 percent in 2004, but that was thanks to the loose lending standards resulting from Congress' following Gail Cincotta's prescription. Contrast 1940 to 1960, a period during which the home ownership rate rose dramatically for both blacks and whites. Why? Precisely because home lending until 1960 was not highly leveraged, making it low risk to homebuyers and lenders alike. The cautionary remarks of Watt's predecessor, Ed DeMarco, also made on May 13, are pertinent: "[d]o not confuse weakening underwriting standards and underpricing risk with helping people or promoting market efficiency. A government effort to assist families with limited resources and poor credit history to take on increased leverage seems a curious public policy." American Enterprise Institute (AEI) resident fellow Edward Pinto is the codirector of AEI's International Center on Housing Risk.
Freddie Mac Chief Economist Frank Nothaft said, "Less than half of the housing markets MiMi covers are showing an improving trend, whereas at this same time last year more than 90 percent of these same markets were headed in the right direction. We're hopeful that many of these markets that have stalled will start moving again now that mortgage rates have eased over the past month and the spring home buying season is upon us. House price gains are a doubleedged sword at this stage of the recovery.
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Builders Outlook
Natural gas is right on the money. Today’s builders need every advantage they can get, and natural gas homes are instantly more attractive. Natural gas kitchens sell themselves, and natural gas furnaces, water heaters and clothes dryers offer greater efficiency and lower operating costs than their electric counterparts. For more information on how to use natural gas to turn prospects into buyers, contact Eduardo Lucero at ealucero@txgas.com or (915) 680-7216.
2014 issue 5
2014 issue 5
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Builders Outlook
President’s Message | As President I get to be involved in a variety of ways for the Association and every now and then we find ourselves at an intersection, a crossroads. I think we’re at one now because of the local market and how we are trying and trying but sometimes just not getting going. You President, know what I mean, the market wants to move El Paso Association but we find that our customers are having a little of Builders tough time getting financed. It hurts all of us when we have willing buyers but they just don’t qualify because of the new restrictions on lending. I am sure that many of us have had the customer who comes and wants to build or buy one of our houses, enthusiasm going and everything and then boom, nothing. I think sometimes we get caught up in the same thing, excited because we’re going to sell a house and forget to slow down a little bit and get all the ducks in a row. I admit that afterall we don’t want to lose a customer so we’ll share the excitement without really knowing if they are qualified. I’ve talked with a number of our associates who are in the mortgage business and they tell me that sometimes they also get excited only to find out the customer can’t buy right now. Sometimes it’s something in the customer credit, sometimes it’s down payment, or sometimes it just is simply something they can’t afford. I know that as I struggled to get my business going that I too sometimes had to step back and make sure I could do what I wanted to do. So here we are in the start of summer looking at people, customers, who want to buy a house and we want to sell one to them. I think we have such a good opportunity to do that if we just take the time to make sure our customers are qualified. As a builder it’s important to have a relationship with lenders who you know can help you with your customers. Establish that relationship and get your customers qualified for your home. If you do this you’ll help both of you do what you want to do, get them into one of your homes. There is a lot of inventory out there so my advice is to make sure you do everything you can to increase your chance of a sale. That way we can build more and help all of us do better. I’d like to congratulate the new City Manager for El Paso, Tommy Gonzalez. I look forward to seeing and meeting with him to share some ideas and offer suggestions on how he can help us build inside El Paso. We’re working on several projects that Tommy can help us right away. I wish him good luck with the new job. He already knows I’m here to help any way I can. Finally I would like to thank Victor Morrison-Vega, Ron Roth and Mathew McElroy for meeting with Ray and myself every month. Over the last few months we have had some important breakthroughs in building inspections and environmental inspections. One of most important was the changes in getting the “roll off” rule revised on construction sites, now an “approved” container will do. As a member this is what we do for you and why you belong. Seems like a small deal but I can assure you that it wasn’t easy and it wouldn’t have happened if not for our members sticking together to get it done. I wish every builder was a member and I’m working hard to help get some of those outsiders in. We work together because we need each other, fighting the good fight. My thanks to all who volunteer for us. Keep up the good work. I’d like to wish a Happy 40th Anniversary to my wife Isela, con Amor.
El Paso Disposal
Frank Torres
772-7495
Showroom: 2131 Missouri 915 • 533 • 6045
fax • 533• 6096
Thomas R. Brown, Owner
it’s time to get serious about your retirement. The El Paso Association of Builders is proud to now offer an individualized retirement plan created for you.
ThE EPAB MEMBEr rETirEMEnT PlAn As an EPAB member, you have the unique opportunity to take control of your retirement investing. We understand the challenges of retirement planning. That’s why we have partnered with Employee Benefits of El Paso to offer you the opportunity to create an individualized retirement plan under the umbrella of the El Paso Association of Builders. • investments • irA’s • 401K now is the time to start planning for the next phase of your life. let your membership with EPAB help you get there.
Call (915) 542-0900 for more information today. Prior to selecting investment options for your plan you should consider the investment objectives, risks, fees and expenses carefully. For this and other important information, you obtain prospectuses for mutual funds, any applicable annuity contract and the annuity's underlying funds, and/or additional disclosure documents from the appropriate retirement plan representative. Read them carefully.There is no guarantee that participation in any retirement plan will result in a profit or that your account will outperform a self-managed portfolio. Please consult with your financial planner, attorney and/or tax adviser as needed.
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Builders Outlook
2014 issue 5
Perspective
Ray Adauto, Executive Vice President EPAB
The Surety business area has grown in the last few years from a few offices with lots of rental space to more and more rented or renovated complexes. Our own office complex was built in 1970 and housed the association and at one time three other businesses. The old office was demolished in 2007 to make way for the office you come to now, designed to house just the association and to have a spacious place for meetings and seminars. With the design came the issue of parking and how many spaces we could negotiate with the City of El Paso, the fire department and the requirements for ADA. I can assure you that many hours were spent trying to maximize the number of spots without making them so small that only compact mini coopers would fit. Kind of like you find at the Double Tree downtown. We passed the ADA compliance officers review and we were granted the number of spaces for use by our building. We knew that we would need more spaces on some days if we held a meeting or seminar that would attract more than the 19 spots we have. I got permission from our member who owns the Compass Bank building to allow us temporary use should the need arise. We reciprocate when they are in need. I want you to know this because such is not the case with our neighbors on either side of
Parking: a problem that gets worse for all of us us. It’s a battle for them because their offices just don’t have enough parking for their employees and their visitors. Frankly it has been the single most distracting and frustrating part of my job to have to be the parking lot attendant. I’ve been asked why I expend the effort on this. All I need to do is ask you to look at the Compass Bank parking lot and see the result of not doing so. It has created a problem that doesn’t have a quick easy solution, and its pitted neighbor against neighbor. At one time there was a motorcycle dealership on Gateway East behind the Hyatt Hotel. The owners were notorious for not providing their employees parking on their own property instead instructing them to park at the Hyatt, the Compass bank, on the street or other places. The traffic was a real problem for all of us as we had to maneuver carefully onto Surety or risk getting hit. The Hyatt actually built a parking barrier between them and the motorcycle shop because of the mooching. To the right of the Hyatt is an office complex with little or no parking, so guess where these folks park? Then Family Services has limited parking (to the extent they block the sidewalk in violation of ADA and code) and so again they block the rear easement and park on the Compass lot. This year the two story office
building to our right was overhauled to accommodate a bunch of new tenants, including an administrative office for a health care clinic group, a radio station, some new attorney offices and insurance offices. The owners decided that all these folks could be accommodated and so they went out on a weekend and painted stripes on their lot and proclaimed it parking. The result has frankly not been good. There’s a major rain storm drain located at the southeast corner of our building. The drain has an easement that channels water from Surety to it. Somehow the storm water department has allowed (or doesn’t care) that cars are now parked on the easement, dropping oil and sludge off them and when the runoff comes guess where it will go…the city municipal waste treatment plant. There are cars now parked right up against our office wall. I have had to call the businesses in that building on numerous occasions to let them know a wrecker is on the way to tow a car. What I get from the violators is this: “We don’t have anywhere else to park,” and my response is direct, and unwavering. We even have the Porsche or SUV that loves to block our egress and ingress between the easement and our lot. I don’t understand that and it shows a total disrespect for us and puts them in danger
of damage or worse, obstruction of emergency vehicles. So where do these folks park besides on our lot? Used to be the street, except that the city got proactive and came and painted the curbs yellow, meaning no parking. They also reinstalled no parking signs on the north part of Surety. Compass bank is installing fencing that blocks access to the Reddington building and to Surety. I think Compass is right on in trying to solve the moocher problem, and eventually I see a time when Compass will actually charge to park there or restrict it to tenants and the building visitors. Hyatt continues to crack down on violators to its parking lot just like us. The signs are clearly posted to warn of towing if you park here or there. As I told one driver “look you either move the car or the tow truck will do it for you and they will charge you a tow and storage, your choice.” They grumbled and cursed me as they decided that I wasn’t kidding and that the tow would be expensive. Only time will tell if this parking mess on Surety is ever cleaned up. As long as there are businesses unwilling to invest for parking, then we will do battle each day. My hope is that it doesn’t escalate and that they’ll find a solution quickly. I’m just not optimistic.
2014 issue 5
Builders Outlook
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Industry News New-Home Sales Rise 6.4 Percent Sales of newly built, single-family homes rose 6.4 percent to a seasonally adjusted annual rate of 433,000 units in April, according to newly released data from HUD and the U.S. Census Bureau. The gain builds on an upward revision of sales numbers reported for the previous month. “Builders are gradually increasing sales, but tight credit conditions, particularly for first-time home buyers, are impeding a more robust recovery,” said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del. “In a positive development, builders are adding inventory in anticipation of a further release of pent-up demand,” said NAHB Chief Economist David Crowe. “We are only about half-way back to what could be considered a normal market, but relatively low mortgage rates and affordable home prices are other factors that should help keep starts and sales on a slow upward trajectory in the months ahead.”
On a regional basis, new-home sales rose 47.4 percent in the Midwest and 3.1 percent in the South and held steady in the West. The Northeast posted a 26.7 percent decline. The inventory of new homes for sale increased to 192,000 units in April. This is a 5.3-month supply at the current sales pace.
Builder Confidence Remains Steady Builder confidence in the market for newly built, single-family homes in May fell one point to 45 from a downwardly revised April reading of 46 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. “After four months in which the HMI has shown little signs of fluctuation, it is clear that builder sentiment is becoming more in line with the market reality of a continuing
but modest recovery,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. “However, builders expressed some optimism that sales will pick up in the coming months.” “Builders are waiting for consumers to feel more secure about their financial situation,” said NAHB Chief Economist David Crowe. “Once job growth becomes more consistent, consumers will return to the market in larger numbers and that will boost builder confidence.” 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. The index’s components were mixed in May. The component gauging sales expectations in the next six months rose one
A W A R D E D
TEXAS BUILD E R O F THE Y E AR 2013
We build so you can GROW
point to 57 and the component measuring buyer traffic increased two points to 33. The component gauging current sales conditions fell two points to 48. Looking at the three-month moving averages for regional HMI scores, the South rose one point to 48 while the Midwest fell a single point to 47 and the West posted a four-point drop to 47. The Northeast held steady at 33.
Housing Affordability Edges Higher Slightly lower median home prices along with steady mortgage rates contributed to higher housing affordability in the first quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), released today. In all, 65.5 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $63,900. This is slightly higher from the 64.7 percent of homes sold that were affordable to median-income earners in the fourth quarter. Meanwhile, the national median home price dipped from $205,000 in the fourth quarter to $195,000 in the first quarter while average mortgage interest rates were virtually unchanged, moving from 4.54 percent to 4.57 percent in the same period. “Housing affordability remains strong and this is an encouraging sign as the spring home building season moves into high gear,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. “As home prices and mortgage interest rates are unlikely to go down, the first quarter HOI is another indicator that this is an opportune time to buy,” said NAHB Chief Economist David Crowe. Syracuse, N.Y. was the nation’s most affordable major housing market, as 93.7 percent of all new and existing homes sold in this year’s first quarter were affordable to families earning the area’s median income of $67,700. Meanwhile, Cumberland, MdW.Va. claimed the title of most affordable smaller market, with 96.3 percent of homes sold in the first quarter being affordable to those earning the median income of $54,100. Other major U.S. housing markets at the top of the affordability chart in the first quarter included Buffalo-Niagara Falls, N.Y.; Youngstown-Warren-Boardman, Ohio-Pa.; Harrisburg-Carlisle, Pa.; and Dayton, Ohio; in descending order. Smaller markets joining Cumberland at the top of the affordability chart included Springfield, Ohio; Kokomo, Ind.; Mansfield, Ohio; and Lima, Ohio. For a sixth consecutive quarter, San Francisco-San Mateo-Redwood City, Calif. held the lowest spot among major markets on the affordability chart. There, just 13.3 percent of homes sold in the first quarter were affordable to families earning the area’s median income of $100,400. Other major metros at the bottom of the affordability chart included Santa AnaAnaheim-Irvine, Calif.; Los Angeles-Long Beach-Glendale, Calif.; New York-White Plains-Wayne, N.Y.-N.J.; and San JoseSunnyvale-Santa Clara, Calif.; in descending order. All of the five least affordable small housing markets were in California. At the very bottom of the affordability chart was Santa Cruz-Watsonville, where 21.1 percent of all new and existing homes sold were affordable to families earning the area’s median income of $77,900. Other small markets at the lowest end of the affordability scale included Napa, Salinas, San Luis Obispo-Paso Robles, and Santa Rosa-Petaluma, respectively.
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Builders Outlook
2014 issue 5
FDIC-Insured Institutions Earned $37.2 Billion in the First Quarter Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $37.2 billion in the first quarter of 2014, down $3.1 billion (7.6 percent) from earnings of $40.3 billion the industry reported a year earlier. The decline in earnings was mainly attributable to a $7.1 billion (10.7 percent) decline in noninterest income. Lower income from reduced mortgage activity and a drop in trading revenue contributed to a year-over-year decline in noninterest income. Additionally, noninterest income was higher one year ago due to a one-time gain at one institution. Despite the decline in earnings, more than half of the 6,730 insured institutions reporting (54 percent) had year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable during the first quarter fell to 7.3 percent from 8.5 percent a year earlier. "We saw further improvement in the condition of the banking industry in the first quarter," said FDIC Chairman Martin J. Gruenberg. "Asset quality continues to improve, loan balances are trending up, fewer institutions are unprofitable, and the number of problem banks continues to decline. However, industry revenue has been affected by narrow margins, modest loan growth, and a decline in noninterest income as higher interest rates have reduced mortgage-related activity and trading income fell." Asset quality indicators continued to show improvement as insured banks and thrifts charged off $10.4 billion in uncollectible loans during the quarter, down $5.5 billion (34.8 percent) from a year earlier. The amount of noncurrent loans and leases (those 90 days or more past due or in nonaccrual status) fell by $12.1 billion (5.8 percent) during the quarter. The percentage of loans and leases that were noncurrent declined to 2.46 percent, the lowest level since the 2.35 percent posted at the end of third quarter 2008. Total loan and lease balances rose by $37.8 billion (0.5 percent) in the first quarter to $7.9 trillion. Credit card balances posted a seasonal decline and banks continued to reduce their inventories of mortgage loans held for sale, but most other loan categories registered modest growth. Over the last 12 months, loan and lease balances increased by 3.6 percent, the highest 12-month growth rate since before the recent financial crisis.
Despite the overall growth in loan and lease balances, income from mortgage-related activity remained well below the level of a year earlier. Noninterest income from the sale, securitization and servicing of mortgages was $4.0 billion (53.6 percent) lower than a year ago. One- to fourfamily residential real estate loans originated and intended for sale were $323.6 billion (70.6 percent) lower than in the first quarter of 2013, as rising interest rates in the second quarter of 2013 reduced the demand for mortgage refinancings. Realized gains on available-for-sale securities also were lower than a year ago, as higher medium- and long-term interest rates reduced the market values of fixed-rate securities. Banks reported $827 million in pretax income from realized gains in the first quarter, a decline of $1.2 billion (60.1 percent) from the first quarter of 2013. First quarter net operating revenue (the sum of net interest income and total noninterest income) of $163.7 billion was $6.7 billion (4.0 percent) lower than a year earlier, as a $361 million (0.3 percent) increase in net interest income was outweighed by the drop in noninterest income. The average net interest margin (the difference between the average yield banks earn on loans and other investments and the average cost of funding those investments) was 3.17 percent, the lowest since the third quarter of 1989 as declining asset yields at larger institutions outpaced the decline in the cost of funds. Total noninterest expense was $18 million (0.02 percent) lower than in the first quarter of 2013, as payroll expenses fell by $579 million (1.2 percent). Banks set aside $7.6 billion in provisions for loan losses, a reduction of $3.3 billion (30.3 percent) compared to a year earlier. This is the 18th consecutive quarter that the industry has reported a year-over-year decline in quarterly loss provisions. The average return on assets (ROA) fell to 1.01 percent in the first quarter from 1.12 percent a year earlier and the average return on equity (ROE) fell to 8.99 percent from 9.96 percent. Financial results for the first quarter of 2014 are contained in the FDIC's latest Quarterly Banking Profile, which was released today. Also among the findings: Community banks earned $4.4 billion during the quarter. The FDIC has
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added a new section to the Quarterly Banking Profile that reports on the performance of community banks – those institutions that provide traditional, relationship-based banking services in their local communities. Based on criteria developed for the FDIC Community Banking Study published in December 2012, there were 6,234 community banks (93 percent of all FDICinsured institutions) in the first quarter of 2014 with assets of $2.0 trillion (14 percent of industry assets). Although net income at community banks of $4.4 billion was down $67 million (1.5 percent) from a year earlier, the percentage decline was far less than the 7.6 percent decline in earnings reported by the industry. The report also finds that loan balances at community banks grew at a faster pace than the industry, asset quality indicators continued to show improvement, and community banks accounted for 45 percent of small loans to businesses. The number of "problem banks" fell for the 12th consecutive quarter. The number of banks
on the FDIC's "Problem List" declined from 467 to 411 during the quarter. The number of "problem" banks now is less than half the postcrisis high of 888 at the end of the first quarter of 2011. Five FDIC-insured institutions failed in the first quarter. The Deposit Insurance Fund (DIF) balance continued to increase. The DIF balance (the net worth of the Fund) rose to $48.9 billion as of March 31 from $47.2 billion at year-end 2013. Assessment income was the primary contributor to the growth in the Fund balance. Estimated insured deposits increased 1.9 percent, and the DIF reserve ratio (the Fund balance as a percentage of estimated insured deposits) rose to 0.80 percent as of March 31 from 0.79 percent at the end of 2013. A year ago, the DIF reserve ratio was 0.60 percent. By law, the DIF must achieve a minimum reserve ratio of 1.35 percent by 2020.
2014 ISSUE 5
Builders
Builders Outlook
utlook on the scene |
Young Designer scholarship contest brings 23 entries
The annual El Paso Association of Builders Young Designer scholarship contest was judged in May and the winners came from both the Socorro and El Paso Independent School Districts. Twenty three models and plans were judged by members of the association over a week long time frame. The contest is held annually to support high school students wishing to advance in their education in either college or at trade school. The students are given a “problem” at the beginning of the school year and they work their way to the judging in May. This year the problem was about grandparents who are downsizing from a 10,000 square foot home to a more modest 3,000 square foot model with specific features and client requests. Each student took the problem and worked around the requirements mentioned in the problem. From the start there were some works that clearly met the criteria and some that didn’t. it was the job of the judges to review each entry to assure that those criteria were met and points were awarded to each review. The judges are never told the identity of the student, male or female, age, or classification. The plans and the models only had an identifying number and the judging was done using that number. Only after the totals are tallied and results presented to the teachers do we find out who the students are and what school they represent. This year’s top three winners are Juan Carlos Gutierrez, a junior at El Dorado High School in first place; second place went to Jose Gallegos, a senior and third went to Jesus Flores, also a senior both representing the El Paso ISD. Juan Carlos receives a $1250 scholarship while Jose gets $750 and Jesus gets $500. Each student is given the money through the Financial Aid office wherever they attend at the next level. If, like in the case of Juan Carlos a high school junior wins then the money is held in reserve until he graduates and goes to his choice of school. The El Paso Association of Builders has a fund with the El Paso Community Foundation that funds the scholarships. Presentation of the awards was made by John Chaney, Chairman of the Young Designer program. Our thanks to all the judges, including Kelly Sorenson, Ryan Harding, Edmundo Dena, Edgar Montiel, Walter Lujan and Ray Adauto. Our thanks also to the teachers who worked so hard for their students: Cecilia Orozco (EPISD); Lynn Cordova (Socorro High) and Luisa Valenzuela (El Dorado). Ms. Cordova is retiring at Socorro and will be missed by both her students and our YD family.
7 See more photos of this event on page 14
el paso development news Downtown: Digital Wall to Be Housed in Protective Pavilion The project to bring the country’s first TouchCity Digital Wall to the El Paso Museum of History took another step forward recently when officials chose the tentative design for a pavilion that will protect the new installation. Designed by MNK Architects of El Paso (www.mnkarchitects.com), the 1,661 square foot pavilion features a protective roof with distinctive angles, new signage for the museum and the Digital Wall, and materials that both distinguish it and marry it to the existing building. In effect, it will serve as an entrance plaza to the Museum’s exhibit spaces. The Digital Wall itself will be attached to the south-facing wall of the museum building, to the west of the existing entrance doors. The five screens that make up the Digital Wall will be enclosed in an insulated structure, supplied by EuropTec USA of West Virginia, a company specializing in anti-glare glass. The protective glass will actually float above the screens, allowing a 1/8 of an inch gap of air. It will have a LUXAR antireflective coating to lessen glare, and
Mixed-Use Apartments Proposed for West El Paso Two Four-Story Buildings to Include Housing, Commercial Spaces
will include an easy-to-clean treatment that will lessen effects of fingerprints from users. Dust-proof enclosures will protect HyperSound speakers from dust. Gibson Group of New Zealand, the production firm that created the TouchCity Digital Wall, describes it as a giant “interactive kiosk designed to give a wide public audience on the streets direct and playful access to their museum’s collections, and to add their own material in real time.” The touch screens allow users to explore “maps” using images and videos from both the museums they serve and the public. Museum officials have opted not to enclose the pavilion in order to make the Digital Wall a more inviting feature to passersby. A set of angled columns dive down from the ceiling and meet at a single point, a circular bench on the western edge of the pavilion. A cantilevered roof will float over the pathway on the same side. “This was designed for El Paso,” says Renée Jiménez, AIA, President and CEO of MNK Architects, “and by El Paso,” A rezoning application with the City Plan Commission reveals a mixed-use apartment complex planned for West El Paso. Two four-story buildings will make up the project, located on De Leon Drive, just off North Mesa Street. The project includes a total of 16 apartments, including 12 two-bedroom and four one-bedroom units, spread between both buildings. The apartments comprise a total area of 16,064 square feet. Another 3,210 square feet will be dedicated to retail space on the ground floor of each building. A total of three retail spaces will be available.
A 1,661 square foot pavilion will protect the future TouchCity Digital Wall and its users at the El Paso Museum of History. (Courtesy MNK Architects)
referring to the hand the local firm has had in creating the innovative design. “It’s about who the project is for.” Jennifer Matthews, AIA, Principal at MNK adds, “You’re bringing consultants and ideas from out of town, but it’s being built by local architects and engineers.” Plans are also in the works for a mobile unit that will travel to functions through the city, such as schools and events, and will be a miniature version of the Digital Wall at the Museum of A reduction of 40% of the parking requirement will be requested as part of the application; a project of this size requires 43 parking spaces in Residential Mixed Use zoning, while only 26 are proposed. According to the application, a traffic study has shown that there are 71 spaces within a 300 foot radius of the property. The surrounding area has a mix of uses, including single-family homes, multifamily apartments, and commercial properties. The recently completed FiestaBalboa pocket park is also nearby. The Planning Division is recommending
History. The idea is still in the early stages, but the tentative plan is to have a 72-inch mobile screen that will have the same type of 3-D map software planned for the Museum. Officials hope to have the Digital Wall project completed at the El Paso Museum of History by December 2014.
approval of the rezoning application for the property, which is located at 2 De Leon Drive. The City Plan Commission with consider the item at the April 24, 2014 meeting.
Loop 375 Northwest Freeway Nearly Complete Contractor Lists Mid-May as Possible Opening Date for Transmountain Expansion
Direct connectors will take drivers to and from Loop 375 in West El Paso. (www.sundt.com)
Planned Campbell Apartments Pictured In Rendering
Transmountain Road on El Paso’s West Side is the latest portion of Loop 375 to see expansion, and the contractor on the project has indicated that the new freeway could open as soon as this month. The 3.5 mile project stretches from Interstate 10 to the Franklin Mountains State Park entrance. The opening date was indicated in a recent blog post at the website of Sundt Construction (www.sundt.com), the contractor based in Tempe, Arizona. Sundt began construction in the fall of 2012. The project includes two direct connec-
tor ramps to and from I-10, as well as construction of four main lanes on Loop 375, two in each direction. New frontage roads run alongside the freeway lanes, and four overpasses have been built over crossing surface streets. Hiking and biking trails were also constructed on each side of the freeway. Sundt’s blog post was created in March and indicated that landscaping was 70 percent complete at the time, while overhead sign structures were already in place. “What’s left before the project is com-
plete in mid-May? Traffic signalization, electrical work below some of the bridges, and asphalt paving,” the blog adds. Construction is ending at the same time work is nearly complete on the Loop 375 main lanes in Northeast El Paso. Those lanes opened to traffic last month. When all the lanes are opened in the coming weeks, commuters will be able to travel on Loop 375 from I-10 in West El Paso to I-10 in Far East El Paso without stopping.
A concept rendering of the Campbell Apartments, a 88-unit mixed use project planned for a neighborhood near Downtown El Paso, has been posted at the website of the architectural firm behind the design, EXIGO Architecture. The rendering includes four levels, which was the original design. The latest plan includes a fifth level of apartments. (www.exigoarch.com
Content provided by El Paso Development News visit: elpasodevnews.com
Builders Outlook Issue 5.2014 SmartCode Project Requests 12-Month Extension City to Consider 2nd Amendment to ‘Aldea El Paso’ Agreement The second massive SmartCode project planned for West El Paso will have 12 more months to begin construction on its 204-acre development, the second time the developer requests a one-year extension. The developer, Geltmore, LLC of Albuquerque, still has not complied with one item out of five required by the Chapter 380 incentives agreement it signed with the City of El Paso in 2011. Geltmore must get Texas Department of Transportation (TXDOT) approval for the
Interstate 10 frontage road and interchange that will provide access to the development. The western portion of Aldea runs adjacent to I-10, and an interchange will be created where the future Mesa Park Boulevard crosses over the freeway. A frontage road will connect Mesa Park to Executive Center Boulevard. In July of last year, the effort to make the frontage road/interchange project a reality gained some steam. The Camino Real Regional Mobility Authority (CRRMA) helped develop an agreement between TXDOT, Geltmore, and the City of El Paso to help the project move forward. Walmart Stores, which owns portions of the property and plans to open a location within the development, was also included in the agreement. And the project was also listed in the 2013 El Paso County Comprehensive Mobility Plan as one of 16 projects slated to start in the coming years. The CRRMA is also helping to oversee the projects listed in that Plan. It lists the $25 million interchange/frontage road project as possibly beginning in late 2014. Aldea El Paso will be developed to SmartCode standards and will create
over one million square feet of retail and entertainment space, 250,000 square feet of office space, and 350 rooms between two hotels. A mix of housing options will make up 1,245 residential units. It will have 3,300 feet of I-10 frontage
and will connect to the Montecillo SmartCode development immediately to the north, which is already under construction. Geltmore will have until May 2015 to begin construction on the Aldea El Paso project.
El Paso Looks to Revamp Street Design Guidelines City Adopts Bike, Pedestrian Friendly Layouts for Roadways The City-owned streets in El Paso may look very different in the future now that City Council has adopted new design guides for roadway planning. City Representatives approved incorporating the “Urban Street Design Guide” and “Urban Bikeway Design Guide” as official design guidelines for “bicycle facility and other city funded street and roadway improvement projects.” Both guides were developed by the National Association of City Transportation Officials (NACTO). According to NACTO’s website (nacto.org), the “Urban Street Design Guide” helps cities make streets “safer, more livable, and more economically vibrant.” NACTO sees streets as having an ever-expanding set of needs and not simply as traffic corridors, with an emphasis on accommodating all modes of movement including vehicles, bicycles, transit, and pedestrians. As the website stresses, streets make up 80 percent of public space. The street design guide recommends design elements for different types of potential thoroughfares through a city,
including Downtown streets, neighborhood streets, boulevards, and alleys. It looks at design elements within each street type, including lane width, sidewalks, curbs, bus lanes, bike lanes, and stormwater management. Many illustrations throughout the guide show how El Paso streets could possibly look if improved to follow the new design principles. Streets like Montwood Drive, Mesa Street, Dyer Street, and Alameda Avenue would look completely different with elements like active medians, raised bike lanes, and curb extensions. The guide is divided into several chapters, including one that specifically looks at intersections. The design of intersections, according to the guide, can help “bring people together and invigorate a city, while making traffic more intuitive, seamless, and predictable for those passing through.” NACTO’s “Urban Bikeway Design Guide” delves deeper into creating welldesigned streets for bicycle traffic. The guide looks at specific design elements in different sections, including bike lanes,
intersections, signs and markings, cycle tracks (bike lanes physically separated from vehicle lanes), signals, and bicycle boulevards (streets that give bicyclists travel priority). NACTO is a non-profit coalition of city transportation departments based in New York. Founded in 1996, its goal is to raise “the state of the practice for street design and transportation by building a common vision, sharing data, peer-to-peer
exchange in workshops and conferences, and regular communication among member cities.” Earlier this year, the El Paso City Council asked staff to develop a resolution adopting both guides as the official guidelines for bicycle and street improvement projects within the city. City Council adopted the resolution at its May 20, 2014 meeting.
Moves Made on Large Northeast El Paso Property Owner Seeks Commercial Zone for 35-Acre Development El Paso’s City Council will hear an agenda item this week on a large tract of land in Northeast El Paso that could potentially bring a sizeable shopping center to the area. The developer is seeking to change the zoning to commercial to allow for retail and office uses. The property, located on the southeast corner of US-54 and McCombs Street, sits on 35 acres of undeveloped land and is adjacent to the Northeast Regional Park. The site plan included in the rezoning application shows several retail and office buildings of various sizes in a mostly traditional suburban shopping center layout. None of the buildings include any possible tenant names, though the largest building is labeled as “Superstore.” Some of the buildings labeled as “Retail” may in fact be used
for restaurant space. The site plan will also most likely see changes as eventual groundbreaking nears. The property is actually made up of two parcels, the smaller of which will be zoned as C-2 (Commercial), a lower density zoning due to the adjacent neighborhood to the south. The larger parcel is seeking C-3 zoning along US54. The City received on letter in opposition to the application, from residents in the nearby neighborhood who are afraid the shopping center will result in increased traffic and crime. EP Plaza Partners is listed as the property owner, though the site plan was prepared for Mimco, Inc., the large shopping center operator. City Council will consider the rezoning application at its May 20, 2014 meeting.
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Builders Outlook
2014 issue 5
Expert Advice
Measuring Energy Efficiency By Javier Ruiz Border Solar
Editor’s Note: In the continuing search for the savings in energy and the confusion of what is “energy efficient” we’ve asked our Energy expert Javier Ruiz for his take. He provided Builders Outlook with this very informed piece from RESNET.com
A major problem faced by homebuyers today is calculating the true affordability of homes they want to buy. Consumers are increasingly aware that outside of the home loan, the highest cost of buying a home today is its energy consumption. However, the blatant lack of transparency in the housing market makes it difficult for consumers to comparison-shop for homes based on energy performance, the way they can for cars, appliances and electronics. This directly hampers their ability to make informed decisions when buying a home. The solution to this problem is the Home Energy Rating System (HERS) Index, which introduces transparency to the home buying process by grading homes based on their energy performance. What is the HERS Index? Developed by the Residential Energy Services Network (RESNET) and introduced in 2006, the HERS Index is the industry standard by which a home’s energy efficiency is measured. HERS Index scores are recognized as an official verification of energy performance by government agencies such as the Department of Energy (DOE), Department of Housing and Urban Development (HUD) and the Environmental Protection Agency (EPA). A HERS Index Score is determined by an energy rating, which is a comprehensive home energy performance assessment. The data is compared against a “reference home” – a design modeled home of the same size and shape as the actual home, so the HERS Index Score is always relative to the size, shape and type of house being rated. The reference home conforms to the 2006 International Energy Conservation Code (IECC) and meets the minimum requirements to be deemed energy efficient. The reference home has a HERS Index Score of 100. Homes with HERS Index scores of 100 or lower are rated as being energy efficient. Those with scores above 100 aren’t. The lower the score, the more energy efficient the home. The HERS Index Score: MPG Sticker for Homes The HERS Index Score makes it easy for consumers to comparison-shop for energy efficient homes and identify the ones they can afford to buy. Similar to the auto industry’s miles-per-gallon (MPG) stickers for new cars, and Energy Guide labels for appliances, HERS Index scores help homebuyers make better-informed decisions about the homes they want to buy. How to Know a Home’s HERS Index Score
Look for a RESNET EnergySmart Builder. Due to the rising demand for energy efficient homes, increasing numbers of builders are committing to having their homes rated for energy performance and using HERS Index scores to market them. Multiple listing services in many states have started creating “green categories” specifically for energy efficient homes. Some of these, like the Gainesville, Florida MLS and MLSs in Colorado for example, list HERS Index scores as part a home’s energy efficient features. Another way to find out about a home’s HERS Index Score is to simply ask the builder or homeowner for it. If they don’t already have one, they can contact a certified RESNET Home Energy Rater to get a comprehensive HERS rating, and a HERS Index Score. By enabling consumers to more easily identify energy efficient homes, HERS Index scores help them make better informed buying decisions. Talk to a certified RESNET Home Energy Rater to learn more about the HERS Index and its value to homeowners and buyers.
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2014 issue 5
11
Builders Outlook
Lowe's to Pay Record $500K Penalty Over Subs' Lead-Paint Rule Violations EPA cites job practice and recordkeeping infractions by contractors that Lowe's uses By: Craig Web, editor-in-chief of REMODELING
Environmental Protection Agency In midJanuary, the EPA sent this RRP rule postcard to 540,000 contractors by mail and electronically. Lowe's Home Centers will pay a record $500,000 civil penalty to settle allegations that contractors it hired for home projects violated the federal Lead Renovation, Repair, and Painting ( RRP) rule, the Justice Department and Environmental Protection Agency (EPA) announced today. The penalty--by far the largest ever imposed for an RRP violation--stems from investigations at 13 of Lowe's 1,700 stories nationwide in which EPA reviewed records from projects performed by companies working under contract to Lowe's. ( See details.) "The government complaint alleged that Lowe’s failed to provide documentation showing that specific contractors had been certified by EPA, had been properly trained, had used lead-safe work practices, or had correctly used EPA-approved lead test kits at renovation sites," EPA said in a news release. "Additionally, EPA’s investigation found that Lowe’s had also failed to ensure that work areas had been properly contained and cleaned during renovations at three homes." A Lowe’s spokeperson stressed to REMODELING in a telephone interview that the big-box retailer "has had an aggressive lead-based paint renovation compliance program in place since the EPA’s Lead Renovation, Repair and Painting Rule went into effect. There have never been any reports of lead-based paint health issues
associated with any projects completed by Lowe’s contractors." The government's complaints mainly involved paperwork, she said, stating: "Lowe’s hires thousands of independent, third-party contractors and the EPA identified only a few who failed to meet certain recordkeeping or work practice requirements regarding lead-based paint. Lowe’s cooperated with the EPA and has resolved all issues alleged by the EPA." As part of its settlement, Lowe's must institute "a robust, nationwide program" to ensure its contractors are properly certified to do renovations in areas where lead paint might be present and to adhere to practices that minimize lead contamination in customers' homes. That program includes a checklist that contractors must follow to assure they follow-lead safe practices. Contractors won't get paid until they complete the checklist, an EPA official said. Today's announcement is the first of its kind to address lead safe work practices on a system-wide basis and "will help prevent children’s exposure to lead in communities across the nation by raising home improvement contractors’ awareness of EPA’s lead safety regulations and contributing to a culture of compliance,” Robert G. Dreher, acting assistant attorney general for the Justice Department’s Environment and Natural Resources Division, was quoted as saying. Use of lead paint in homes was banned in 1978 because it was found to damage the health of residents, particularly developmental disabilities and behavioral disorders--even seizures and death--mainly involving infants, small children, and the elderly. The RRP rule seeks to minimize the
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Protection Agency (EPA) rules for doing renovations that could disturb lead paint. That news followed another recent settlement in which two firms paid fines totaling $14,455 to settle allegations involving a project in Maine, as well as EPA's announcement that it was sending letters to 200 home renovation and painting contractors in Connecticut about a planned "compliance assistance and enforcement initiative." Most RRP-related enforcement activity has been in New England, but the Lowe's investigation was nationwide. The Lowe’s stores that EPA checked were in Alton, Ill.; Kent and Trotwood, Ohio; Bedford, N.H.; Southington, Conn.; South Burlington, Vt.; Rochester, N.Y.; Savannah and Lebanon, Tenn.; Boise, Idaho Falls, and Nampa, Idaho; and Muldoon, Ark.
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harms that could come when lead paint on the walls is disturbed during renovation projects. “Today’s settlement sends a clear message to all contractors and the firms they hire: Get lead certified and comply with the law to protect children from exposure to dangerous lead dust,” Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance, said in the EPA news release. “Lowe's is taking responsibility for the actions of the firms it hires, and EPA expects other contractors to do the same.” "Big-box home improvement dealers are responsible for the contractors they hire," Dreyer declared during a teleconference with reporters. Today's announcement comes two days after EPA's Boston office announced that four New England firms will pay penalties ranging from $2,200 to $30,000 to settle allegations they violated Environmental
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Builders Outlook
2014 issue 5
Expert Advice IRS Clarifies Employer Reporting Requirements
Joe Bernal Employee Benefits of El Paso
Builders
In 2015, Affordable Care Act reporting requirements will begin to phase in for employers with 50 or more full-time equivalent employees. The statute calls for employers, insurers and other reporting entities to report information to the IRS. Employers with 100 or more employees must offer affordable health insurance coverage to employees or make a “shared responsibility” payment; employers with 50-99 employees have received a one-year reprieve (until 2016) from the coverage mandate. IRC Section 6055 applies to health insurers and employers that self-insure. They must provide information about the entity
providing coverage, including contact information, and which individuals are enrolled in coverage, with identifying information and the months for which they were covered. IRC Section 6056 applies to employers that must “play or pay” but that do not self-insure. They must provide information about the employer offering coverage, including contact information and the number of full-time employees. For each full-time employee, they must also provide information about the coverage (if any) offered to the employee, by month, including the lowest employee cost of self-only coverage offered. In March, the IRS released final regulations on information reporting by those employers. The regulations will substantially streamline employer reporting requirements by providing for a single,
utlook on the scene |
Speed Net does it again, lots of business done Reputation is everything in business and frankly the Speed Networking event at the EPAB is one of the best things we do. It has a reputation for hooking up vendor and buyer and so it was this month when the association hosted thirteen builders and fifteen vendors. Some first time vendor members were impressed and told the Outlook how much so. “I belong to several other home builder associations and frankly none of them has done this event,” said Chuck Haskins of Haskins Electric. “I can’t believe that we have had the opportunity to meet so many builders in one swoop, something that we haven’t had a chance to do at the other associations and frankly this was great,” Haskins continued. Chuck had traveled from Phoenix to be here but he wasn’t the only member from out of town that came. As a matter of fact the honor of longest distance to attend a Speed Net went to Alex Zarrin, of Pacific Door Design from San Diego, California. He also had high praise for the event. “When I asked Ray what this was about he said that it would be interesting, fun and a good event to get to meet builders at,” “Ray was a little off because he forgot to tell me that I’d be surrounded by some great members as well,” Zarrin said. When we asked both of our new members if this met their expectations both were quick to answer with a resounding yes. “ I can’t begin to tell you how valuable this is to us as new guys in the area, but here we were welcomed and I made some good contacts, something that would have taken me a lot longer to do without Speed Networking,” said Haskins. On the builder side the feeling was mutual. “I got to spend a little more time with each vendor this time and I think that really helped me get some more information and be better informed,” said Frank Torres. He went on to tell the Outlook that he had heard vendors say the same thing. As a matter of fact Frank got a deal that he needed right away and picked up some merchandise from El Paso Winnelson the next day. “We had a terrific time,” said Rene Goldfien from El Paso Winnelson. Edmundo Dena also got some contacts and had an opportunity to sit with some of his suppliers and learn about new stuff. “ There hasn’t been a Speed Networking where we didn’t find something new or better, and I tell my suppliers that they better be here or I’ll might find a competitor waiting for my business,”. Our thanks to all the Associate members who displayed at the first Speed Networking of 2014, and to the builder members who came and represented themselves. Each one of the builders, and in this case a few of the Associates, took home a $50 gift card as thanks for coming to the event.
consolidated form that employers will use to report to the IRS and employees under both sections 6055 and 6056, thereby simplifying the process and avoiding duplicative reporting. • Self-insured employers will complete both sections of the form. • Employers that do not self-insure will complete only the top section of the form (reporting for section 6056). • Reporting requirements do not apply to employers with fewer than 50 full-time equivalent employees, who are exempt from the ACA’s requirements. For more information contact Joe Bernal joe@employeebenefitsep.com 915-542-0900
2014 Issue 5
13
Builders Outlook
www.elpasobuilders.com www.epbuilders.org
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14
Builders Outlook
2014 issue 5
Associates Council
Sam Shallenberger Western Wholesale Supply
Associates participated in the Speed Networking in a big way. I’d like to thank those who came and had a really good event. Border Solar, Dorney Security, El Paso Winnelson, EP Mass Media, First Light FCU, Haskins Electric, Lone Star Title, Mechanical Technologies, New Era Spray Foam, Pacific Door Design, Stewart Title, Sun City Spray Foam, Carpets West and my company Western Wholesale Supply. I’m sure that there were some others who wanted to be there but the timing wasn’t right for them. We’re working on
some other neat events that will allow more of you to participate with us. We’re looking to do something different for our summer time event and we can’t announce it yet because it would spoil the surprise. Also coming soon will be the much anticipated‌.wait I can’t tell you about that either. Sorry, guess you’ll have to wait to see what we’ve got planned. With the summer heat coming on I want to make sure that everyone remembers to hydrate and stay covered from the sun. I can tell you that every year we
see too many of our friends and family discover that a little protection from the sun would have helped. Don’t be a statistic, cover up and use maximum SPF sunscreen. Congratulations again to the winners of the Young Designers scholarship. These young people give us hope that all isn’t lost. We’ll see you at the next General meeting and around town.
Advertise your business to the home building industry The Builders Outlook is the official publication of the El Paso Association of Builders. Our award winning monthly newspaper is the only publication to target El Paso home builders and related businesses. Widely distributed throughout the city and available to readers online, the Builders Outlook is an important advertising medium for any business that want to reach this valuable market.
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www.elpasobuilders.com www.epbuilders.org 6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038 ■ execuTive oFFicerS Frank Torres – President GMF Custom Homes edgar montiel – vice President Palo Verde Homes carlos villalobos – Secretary Treasurer Palo Verde Homes Sam Shallenberger – Associates chair Western Wholesale edmundo Dena - immediate Past President Accent Homes ray Adauto – executive vice President El Paso Association of Builders Jay Kerr -Attorney of record
■ 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 Carlos Villalobos Women’s council Lorraine Huit ■ ADviSorY To THe BoArD J. Crawford Kerr, Attorney, Firth, Johnston & Martinez ■ BoArD oF DirecTorS Beverly Clevenger, Automated Division 6 Builders, Inc. Leti Navarette, Custom Dream Homes Kathy Parry, Hunt Communities Edgar Garcia, Bella Vista Custom Homes, Inc.. Bud Foster, Southwest Land Development Services Juanita Garcia, ICON Custom Home Builder, LLC Walter Lujan, DAWCO Home Builders Joey Najera, Joseph Custom Homes Rigo Mendez, Mission Homes Nick Bombach, Casas de Leon, LLC Lydia Mhouli, Crown Heritage Homes JJ Vasquez, Pacifica Homes Dan Ruth, Millenium Homes Ken Wade, El Paso Building Materials Ruben Orquiz, MTI Ready Mix Kathy Carrillo, Pioneer Bank El Paso Henry Tinajero, WestStar Bank Chuck Gabriel, Carpets West Ted Escobedo, Snappy Publishing John Chaney, Passage Supply Joe Bernal, Employee Benefits of El Paso Linda Troncoso, TRE & Associates Orlando Rodriguez, Mass Media Advertising, Inc. Bret Thompson, Foxworth Galbraith Lumber Chris Worm, City Bank Texas Sal Masoud, Del Rio Engineering
■ TAB STATe DirecTorS Randy Bowling Greg Bowling
■ NATioNAL DirecTorS Bobby Bowling IV. Demetrio Jimenez NATioNAL ASSociATioN oF Home BuiLDerS (800) 368-5242
TexAS ASSociATioN oF BuiLDerS (800)252-3625
2013 Builder member of The Year Edmundo Dena Accent Homes 2013 Pat cox Award Sam Shallenberger Western Wholesale Supply 2013 Associate of The Year WestStar Bank Larry Patton, Burt Blacksher and Henry Tinajero
Honorary Life members Wayne Grinnell Don Henderson Chester Lovelady Cliff C. Anthes Anna Gill Brad Roe Rudy Guel E H Baeza 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 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. © 2014 Builder’s Outlook is published and distributed for the El Paso Association of Builders by Ted Escobedo, Snappy Publishing ted@snappypublishing.com El Paso • Texas • 79912 915-820-2800