Builders Outlook April 2011
-
Upload
tedescobedo -
Category
Documents
-
view
60 -
download
3
Transcript of Builders Outlook April 2011
By Ray Adauto, EPAB The El Paso Times ran a story on
the front page of the Sunday Timeson April 3 concerning the City of ElPaso’s new surety bond of$50,000. In the story reporter VicKolenc looked at the high dollaramount of the bond and told thereaders that the Association wasopposed to it. Interestingly in thestory the City admitted that only 385contractors were now registered withthe City. In January 2010 there wereapproximately 2,500 registered withthe old $10,000 bond. That’s ashocking downturn in registeredcontractors and tells of whatconsequences follow actions likethis. There was apparently onlyenough space in the paper to sharesome of the interviews that tookplace between Mr. Kolenc and me.The risk that is run anytime someonedoes an interview is to have only“some” of the information get printedor told, while so much more justdoesn’t make it to print or onto theairwaves.
The story behind the story isfascinating look into the thinking ofthose in charge at the City of ElPaso and how decisions are maderegarding construction in El Paso.The story begins about two yearsago when the City was looking at
revamping a lot of the codes andordinances related to developmentand construction. Back in 2009 thefar east part of the El Paso, includingHorizon City and some areas of thecounty, was hit by a substantial hailstorm. The storm left the area with alot of hail damage to cars, homes,and businesses. Following thatstorm were a number of “stormChasers”, traveling contractors whofollow hail storms and tornados,floods and other disasters and offertheir services. It is these companiesthat were cited by city officials as thereason for looking at the blanketsurety and construction bondamount. They claim that there werea large number of complaints aboutthe repairs that were made by someof those companies, and in an effortto “protect” the consumer the Citydepartment heads came up with anarbitrary figure to use, and that figurewas $50,000. Their thought processwas that a roof cost $20,000, butthey failed to ask contractors orroofers if indeed that number wasright. Secondly it was determined togo two and a half times that for thedollar amount in order that two orthree consumers would have moneyto go after if there was a default.There’s a lot that is wrong with thismethod and it starts with what doesa new roof cost for the average 2000sq. ft home. Taking into account twodifferent types of roofing (new andreroof) local contractors say thatroofs are costing $6000 to $10,000.Taking the city’s method the new
bond requirement shouldn’t bemore than $20-$25,000. That makesbusiness sense to most. Reducingthe amount also reduces the targetfor unscrupulous people and inparticular actions from unscrupulousattorneys. Roofers and buildershave been subjected to increasingattacks by several attorneys and socalled “roofing inspectors”, leading tocostly court battles. Enlarging thetarget amount will surely causeothers to join in the attacks, and thatis a major concern for the industry.
While the stated goal of the actionis to protect consumers it leaves outprotecting the contractor or roofer,particularly when it comes to optionsagainst putting a claim against thebond. The city’s ordinance does nottake into account that contractorsand roofers carry general liabilityinsurance to cover incidents after thecompletion of the project. The newordinance is specific in saying that abonding agency pay the partyattacking the bond automaticallyapparently overriding the right of thecontractor to use arbitration (bycontract) or getting a courtsettlement.
The new bond is stated by one citycouncil candidate as the reason he isrunning. Abe Peinado is running inDistrict 1, Westside/upper valleyseat. He has stated at forums thatas an insurance agent he wasshocked to find that at least seven ofhis clients were refused the higherbonding because of the new financialdocumentation that is required by thelarger amount. “I found myselflooking at good people, clients thatare good pay, being denied because
they didn’t have enough assets, orhad dings on their credit report,”Peinado said. That problem alsosurfaced with members of theassociation who sell the bonds assome of their clients also found itdifficult or impossible to get the newbond. For well establishedcompanies the new bond just addsan addition fee to the increase infees at the city. Those increaseseventually end up at the sale of thehome, but higher costs also meanthat fewer people can qualify. “Wehear the argument a lot that it’s only$500 or that it’s $3000 here or there,but in reality it’s not a one timething,” EPAB President Greg Bowlingsaid. “It’s that amount mortgagedover 15 to 30 years, and it mayseem like a small amount now endsup costing a lot over the life of themortgage,” he concluded.“Sometimes that little amount makesqualifying buyers much moredifficult,” he said.
The jury is out as of this writing asto whether or not the current CityCouncil will do anything about thebond, or anything about othersignificant changes to the El PasoCity Code. Making it more difficultand more costly to do businesswithin the City limits just createsopportunity elsewhere including theCounty and cities like Anthony,Canutillo, Socorro, Clint and Horizon.Even Santa Teresa will benefit fromcouncil actions. What is interestingis that these actions will create whatthe majority on City Council don’twant, urban sprawl. It will alsodiminish the tax base just enough tocreate problems for future councils.Having the issue of the bond madepublic was an important decisionsince it does carry considerableconsequences, intended andotherwise. Perhaps the developmentand builder community is beingsingled out again, but then againmost of the time they’re used tobeing on the hit list first.
The El Paso Association ofBuilders will continue to speak toissues like the bond and through itsvolunteer members work to findsolutions that are positive for bothsides. Arbitrarily forcing somethingon a business is counter productiveand has no place in this community.The EPAB is asking publically thatthe City of El Paso reconsider thebond amount and do so quickly. Thecontractors and roofers in thiscommunity are vital to its future.
Issue 4 2011 Building El Paso’s tomorrow today
Builders OutlookP
RS
RT
ST
D
U.S
. P
OS
TA
GE
PA
ID
EL
PA
SO
TX
PE
RM
IT N
O.
429
www.elpasobuilders.com
El Paso TimEs sTory sTirs quEsTions
City drives builder’s costs up, lowers tax revenue
Builders Outlook2 APRIL 2011
The year is just going and going. I guess
all of us have to wonder where the time has
gone but we’re entering the second quarter
and there’s so much to do. As I recap the
first three months of the year I can tell you
this: the El Paso Association of Builders is a
strong and viable organization. While that
statement may seem to some as strange let
me tell you why in a couple of words: great
volunteers. That’s right where the heart of
the association lies, in our willing volunteers
who take time off from their busy schedule
to give time to the EPAB. I like telling folks
that these members who do this understand
what this association is about. They “get it”.
An Association is designed to get the input
from many and funnel it down to a cohesive
point of view or effort. To me nothing
demonstrates this more than when we go to
Austin for our Rally Day event. Let me
assure you that the El Paso Association of
Builders is well known at the Capitol
through our efforts by members, staff and
lobbyist. All of our state representatives
understand that this association is more than
just builders or developers and includes
prominent businesses in the community.
They are often surprised when they meet
someone from what they would consider
outside of the builder side. They admire that
we have a group willing to travel to them to
express how important the homebuilding
business is in El Paso. My thanks to all who
went and took the time, money and effort to
make the trip. It was a blast, perhaps the best
Rally Day in our history.
Locally we are focused on city issues.
First it’s the $50,000 surety bond that the city
has imposed on contractors. Ray and I,
along with Bryan Sanderson, Kelly Sorenson
and others have spent a lot of time trying to
get the city to act reasonably. Nothing yet
and yet I am hopeful that the city will come
around and amend the current version of the
ordinance. Secondly is the work trying to get
permits out from the 5th floor. Nothing is
easy but this new system that City Manager
Joyce Wilson has put in place is not working
yet and everyone seems to have a real dislike
for it. Once again our volunteers and staff
have been busy trying to get city hall to
figure out the problem and get it resolved.
It’s costing everyone, including the city, a
whole lot of money. Third and probably the
most challenging is the exclusion of the
home builders in vetting changes to title 18
and 19 of the city code. “Smart Growth”
code in it’s present form will take away our
ability to choice, our ability to selection and
our ability to build and sell what the
consumer is asking for. Our main issue is the
rewrite of the set back lines, or “build to“
lines as the city calls them. Not much was
brought forward by the city before they were
sent to council for vote. In its present state
not one builder in town will have usable
plans. We will need to redesign all our floor
plans at a substantial cost, which will then be
passed on to consumers through higher costs.
Other issues remain with parts of the new
code in its present form. Ray and I will
continue to work on getting these ordinances
rewritten, and if all else fails then we will
make sure the city gets our message. Which
brings me up to this: without voting in
business friendly city council people then we
will continue to struggle in our right to do
business in the City of El Paso. It is crucial
that you get to know the candidates and tell
them how important it is to have a new home
building business here. Hopefully the new
members of council will listen to our
concerns and work with us. Anything else is
unacceptable.
Finally I look forward to seeing you at the
upcoming EPAB golf tournament on April
19. This should be a really fun event. My
thanks goes out to our players and supporters
including our major sponsors Goff’s,
Interceramic, All Precision Sheet Metal and
our own Tropicana Homes.
Greg
Bowling
President,
El Paso Association
of Builders
President’s Message
Builders Outlook3
Jaime’s Courier Service, Inc.
915-549-4533 or 915-478-2404Bonded, insured for your peace of mind.
El Paso Disposal
772-7495
When the decision to move to another
computer program for the City of El Paso
was raised several years ago no one
considered the possibility that there were
going to be major glitches. It’s
interesting that when someone is selling
you a product seldom do you hear about
worst case scenarios even though I’m
sure that somebody must have asked.
You see it was brought to the attention
of the City that UTEP and the County of
El Paso were considering moving to a
newer version of their program
Tidemark, and in doing so it would be
cheaper if the city joined the other two in
the purchase. The city had an interest
because they were ill equipped for the
newer GIS required in today’s world of
online planning and development.
Hooking up with the County and UTEP
would save money, or so they
envisioned.
After nearly three years the former
City I T chief was fired. It was partially
on the fact that the new Ascela program
wasn’t up and running and that meant
that something like $2 million was a lot
of money to have sitting around in an
unworkable environment. The city went
on to hire the County to do the I T work
(some things really are left to wonder
about, eh?) In February the City
Manager gave the order to shut down
Tidemark and start of Ascela March 1.
Ok, so far so good, or not. Tuesday,
March 1 all heck broke out especially on
the 5th floor where the permits are issued
(or not) and the city earns money at. No
sir, this transition would be like taking a
1954 Studebaker and dropping in a high
tech engine while leaving the
transmission and running gears the same.
Nope, just didn’t happen.
What did happen though was that
getting a permit on the 5th floor became
a struggle for both the applicant and the
staff. Three hours or more waiting time,
another hour or more at the cashier. No,
nothing good or speedy here.
Information missing lost files, slow
computers, irritated staff and applicants.
Oh my, it was quite a sight.
I even got caught up as I took a simple
alarm license renewal down to the city,
but much to my chagrin what should
have taken fifteen minutes max took
nearly an hour. Should have mailed it I
thought. But that’s not all; you see the
permit process was messing up even the
3rd party firms because the new system
wasn’t being cooperative. As of this
writing, things have gotten a little better
each day, for the most part, but the
system has messed up other departments
including the fire department. There
rumors say, fire trucks have been
dispatched where ambulances should
have been and vice versa. Good news is
that firemen are trained for such but the
bad part is ambulances don’t carry fire
hoses and water. So the story on this is
still out on whether getting a “package
deal” turns out to be a real one.
Why would the city be trying to pull a
fast one when it comes to Smart Code
and home designs? After hours of
conversations about title 19 and in
particular 19.50 (lot size and
determination) questions about the speed
of the proposed vote smell of politics
according to some. In talking with select
members of council we got the indication
that staff, including the City Manager,
devised a quick to vote plan in order to
create the code before the upcoming city
council elections. Four seats are up out
of eight, and two of those will be filled
by new representatives, while one might
and the other probably won’t.
The only apparent safe candidate is
Representative Holguin in district 6. His
opponents are not household names and
don’t have the political machine that
Holguin has. District 1 is a crowded race
giving credence that those residents are
frustrated with Representative Lilly.
Talk around town is that she is very
vulnerable but that she is a good
campaigner. District 5 has five
candidates of which pundits say there
could be a three way power grab.
District 8 has a leading candidate in
Niland, but there are six candidates total.
The need to find pro active business
friendly candidates goes beyond the
EPAB doors. For the first time in years
an alliance of business trades and
associations geared up to listen to
candidates and determine how friendly
they are to businesses. While no formal
endorsement is coming out of the group I
think that having these meetings spreads
the target out. I’ve said this before, but
when the builder/developer is the target,
soon it will spread to others. Billboards,
restaurants, hotels, apartments, and
others now understand the pain of being
a target of politics. These meetings have
helped us make those others aware of
what to expect when politicians don’t
understand the costs of doing business in
El Paso. It’s time to elect pro business
candidates and to develop them from
within our ranks.
City problems creates unintended consequence tobuilders, city, our association
Perspective
Builders Outlook4 MARCH 2011
Ray Adauto,
Executive
Vice President
EPAB
Send us your comments.
E-mail to:
4655 Cohen • El Paso, Texas • 79924 • 915-821-3550 • www.tropicanahomes.com
A tradition of Excellence for over 60 Years
With sixty years of experience and over10,000 quality homes built in El Paso,Tropicana Homes has become a namesynonymous with quality construction. Asthey continue to grow and expand,community involvement remains a toppriority. Their commitment to the industryand community has made TropicanaHomes the premier builder in El Paso.
El Paso Builder of the Year 1988, 1997, 2005
Texas Builder of the Year 2003
Texas Industry Leader 2004
Texas Developer of the Year 2009
Builders Outlook 5APRIL 2011
WASHINGTON, D.C. -
Congressman Silvestre Reyes (D-
TX), released the following
statement on the anniversary of
the Affordable Care Act:
A year ago today, on March 23rd,
President Obama signed into law the
Affordable Care Act. Thanks to the
passage of this historic legislation,
many El Pasoans have more access to
quality and affordable health care. The
Affordable Care Act lowers health care
costs, while creating jobs, and reducing
the deficit.
“This legislation not only offers better
access to quality and affordable health
care for El Pasoans, but it also came at a
crucial time for our state. Sadly, in 2009
Texas had the highest percentage of
children and adults without insurance.
More than 6.1 million adults and 1.4
million children in our state were
without basic coverage. In El Paso
alone, 230,000 people - 1 in 3 - were
without coverage.
“Now because of the Affordable Care
Act, thousands of El Pasoans and
Texans are benefiting from the
provisions that have been implemented,
including children who can no longer be
denied coverage by insurance
companies due to a ‘pre-existing
condition,’ and El Paso’s young adults
can now stay on their parents’ health
plan until their 26th birthday.
Nationally, young people make up the
largest demographic without health
insurance, so this provision is
particularly vital for millions of young
Americans.
"Today, El Paso seniors can now
receive free preventative care. More
than 40 million seniors enrolled in
Medicare will begin to see significant
savings by getting preventive services
such as mammograms and
colonoscopies, and an annual wellness
visit, without copayments, coinsurance,
or deductibles. Seniors with high
prescription drug costs, who hit what is
known as the Medicare ‘donut hole’ that
requires them to pay more out of pocket
expenses will be receiving a 50%
discount on brand-name drugs – a
discount that grows until the ‘donut
hole’ is closed in 2020. In El Paso, over
2,200 seniors who hit the Medicare
‘donut hole’ in 2010 have already
received $250 rebate to help cover
prescription drug costs.
“In a few years, insurers will not be
able to discriminate against any of the
129 million Americans with ‘pre-
existing conditions,’ and there will be
state-based insurance exchanges where
they will have access to affordable,
quality health coverage.
“The Affordable Care Act was a
major victory for Texas and the El Paso
community. The benefits of health care
reform will continue to grow for all
Americans.”
Anniversaryof affordablecare act
Silvestre Reyes
US Congress
Guest Perspective
YouR
PlumbingSource in El
44330000 RRoossaa SStt..EEll PPaassoo,, TTXX 7799990055
((991155)) 553322--33991177 •• FFaaxx:: ((991155)) 553322--33991199
Builders Outlook6 APRIL 2011
With the housing production credit crisis
As Congress and the Administration
debate potential reforms of the housing
finance companies Fannie Mae and
Freddie Mac, the National Association of
Home Builders (NAHB) today called on
Congress to develop a workable housing
finance system before it moves forward
with policies that would further destabilize
the struggling housing market.
"A finance system that provides
liquidity for the housing sector in all
geographic markets throughout the
economic cycle is a prerequisite to
achieving housing policy objectives,"
NAHB Chairman Bob Nielsen, a home
builder from Reno, Nev., told members of
the House Financial Services
Subcommittee on Capital Markets and
Government Sponsored Enterprises.
Also of great concern to NAHB are the
credit risk retention rules required by
Section 941 of the Dodd-Frank Act, which
were unveiled this week by the six
agencies charged with implementing that
section of the law. NAHB believes the
proposed rules contain an unduly narrow
definition of the important term "Qualified
Residential Mortgage" (QRM), featuring a
minimum down payment of 20 percent,
which would seriously disrupt the housing
market by making mortgages unavailable
or unnecessarily expensive for many
creditworthy borrowers.
By stipulating such a large down
payment for a loan to be considered a
QRM, the Administration and federal
agencies are preempting congressional
efforts to reform the housing finance
system by imposing a narrow and rigid
gateway to the secondary mortgage
market.
"This extreme proposal could not have
been put forward at a less opportune time,"
Nielsen said. "The housing market is still
weak, with a significant overhang of
unsold homes, and an equally large
shadow inventory of distressed loans. A
move to a larger down payment standard at
this juncture would cause renewed stress
and uncertainty for borrowers who are
seeking or are on the threshold of seeking
affordable, sustainable homeownership.
We believe a more balanced QRM
exemption is imperative in light of the
enormous potential impact it would have
on the cost and availability of mortgage
credit at this precarious point in the
housing cycle."
Addressing the GSE reform issue,
Nielsen noted that the housing finance
system is struggling under a cloud of
uncertainty. The federal government,
through Fannie Mae, Freddie Mac and the
Federal Housing Administration (FHA),
currently accounts for nearly all mortgage
credit flowing to home buyers and rental
properties.
"Even with the current high level of
federal support, fewer mortgage products
are available, and these loans are being
underwritten on much more stringent
terms," Nielsen said. "This arrangement
cannot continue indefinitely, and there is
no clear picture of the future shape of the
conforming conventional mortgage
market. But one thing is clear – the status
quo cannot continue."
Policy discussions are underway on
what should become of Fannie Mae and
Freddie Mac following the current
indefinite conservatorship period, and
what should change in the structure and
operation of the Federal Home Loan
Banks. A key consideration is how to make
the transition from the current structure to
a future arrangement without undermining
ongoing financial rescue efforts and
further disrupting the operation of the
housing finance system.
"NAHB strongly supports efforts to
modernize the nation's housing finance
system, including reforms to the
government sponsored enterprises Fannie
Mae and Freddie Mac," Nielsen said. "We
cannot go back to the system that existed
before the Great Recession, but it is
critical that any reforms be well-
conceived, orderly and phased in over
time. Short-term proposals to reduce the
support Fannie Mae and Freddie Mac
provide for the housing finance system
represent a piecemeal approach to reform
that would disrupt the housing market and
could push the nation back into a deep
recession.
"The National Association of Home
Builders urges Congress and the
Administration to consider the potential
consequences of their proposals," Nielsen
said. "Housing can be the engine of job
growth this country needs, but it can't fill
that vital role if Congress and the
Administration make damaging, ill-
advised changes to the housing finance
system at such a critical time."
NAHB strongly believes that an
efficient secondary mortgage market that
facilitates the flow of capital to housing is
essential to the economy and to the
nation's long-term well-being. NAHB
joined a broad coalition of housing and
financing groups to develop "Principles
for Restoring Stability to the Nation's
Housing Finance System," released on
March 28. The principles, outlined below,
should guide efforts to restore and repair
the nation's housing finance system:
A stable housing sector is essential for a
robust economic recovery and long-term
prosperity. Housing, whether through
homeownership or rental, promotes social
and economic benefits that warrant it
being a national policy priority.
Private capital must be the dominant
source of mortgage credit, and it must also
bear the primary risk in any future housing
finance system.
A continuing and predictable
government role is necessary to promote
investor confidence and ensure liquidity
and stability for homeownership and rental
housing.
Changes to the mortgage finance system
must be done carefully and over a
reasonable transition period to ensure that
a reliable mortgage finance system is in
place to function effectively in the years
ahead.
"NAHB looks forward to working with
all stakeholders to develop an effective as
well as safe and sound means to provide a
reliable flow of housing credit under all
economic and financial market
conditions," Nielsen said.
Builders: effective housing finance system critical to sound economy
Give your customers the ‘option of the sun’
Now more than ever,
El Paso home buyers
are planning for the
future.
Border Solar can help
you offer your
customers solar power
as a sensible
alternative.
The future starts
today.Crossing to Clean Energy
www.bordersolar.com
7365 Remcon Circle
El Paso, TX 79912
(915) 613•4168
follow us on twitter and
facebook:
BorderSolar
Builders Outlook 7APRIL 2011
The plan unveiled by the FDIC would require a minimum 20 percent down payment
for “qualified residential mortgages,” or QRMs, that would exempt lenders from
forthcoming risk retention rules under the Dodd-Frank financial reform law passed last
year.
Below are statements from the panelists outlining their position on the proposed rule:
“Requiring a high down payment would disproportionately harm first-time home
buyers, who have limited wealth and on average account for 40 percent of home-buying
activity. It would take an average family 12 years to scrape together a 20 percent down
payment. Borrowers who can’t afford to put 20 percent down on a home and who are
unable to obtain FHA financing will be expected to pay a premium of two percentage
points for a loan in the private market to offset the increased risk to lenders, according
to NAHB economists. This would disqualify about 5 million potential home buyers,
resulting in 250,000 fewer home sales and 50,000 fewer new homes being built per year.
“Basically the government is telling Mr. and Mrs. America thanks for paying your
mortgage during these tough times, and thanks for building your wealth around housing,
as we have encouraged you to do, but we are now changing the rules. We are going to
reduce the value of your retirement nest egg even more than the recession already has.
And as an extra thank you, your kids are going to find homeownership that much more
difficult to obtain.”
--- Barry Rutenberg, First Vice Chairman, National Association of Home Builders
“The proposed very narrow QRM definition will allow very few potential
homeowners to qualify. As a result, it will complicate the withdrawal of the
Government’s guarantee of the mortgage market. I fear it will also delay the
establishment of broad investor confidence necessary for the re-establishment of the
RMBS market.”
--- Lew Ranieri
“The proposed rule establishes a standard for ‘safe and sound’ mortgages that would
take the industry back to the 1980’s, when low wealth and moderate income borrowers,
and particularly communities of color, were routinely barred from conventional,
affordable credit. The proposed standard seems to ignore all the positive lessons lenders
learned over many years of experimentation in how to offer sustainable mortgage credit.
We are very concerned that when combined with other recommendations from the
Administration’s White Paper on housing finance, including 10 percent down payment
minimums for Fannie Mae and Freddie Mac mortgages, and possibly higher down
payments for FHA borrowers, this proposal will move the lending industry’s goalposts
unacceptably far from the reach of low, moderate and middle income homebuyers.
“We are pleased that the proposals include at least a minimal set of servicing
guidelines that would apply to all mortgage securitizations. We look forward to working
with the regulators to improve and strengthen them. But there can be no doubt after the
foreclosure debacle consumers have endured that clear standards are necessary.”
--- Barry Zigas, Director of Housing Policy, Consumer Federation of America
“Securitization provides financing for most of our credit- mortgages, car loans, credit
cards, even financing for the buildings we work in. The collapse of this market led to
the broad economic recession, and CRL supports reform of the securitization markets.
The goal is to make the system safer, while still making credit available and affordable.
The recent risk retention rules are an important part of this reform process. However, the
proposed Qualified Residential Mortgage standards would unnecessarily over restrict
credit and shut off homeownership to most working families. In particular, the down
payment requirements of 20% would create an insurmountable barrier for most families,
even though low down payment loans that are fully underwritten have performed well,
even through the recent crisis.”
--- Mike Calhoun, President, Center for Responsible Lending
Groups respond to proposed rule for qualified
residential mortgages
The National Association of Home Builders (NAHB) hosted a media teleconference
along with other industry and consumer groups and finance experts to discuss the
negative impact that overly restrictive lending rules proposed yesterday by the Federal
Deposit Insurance Corp. would have on the housing market and larger economic
recovery.
EPAB ON THE SCENE
APRIL 2011
Associates visit
Board Meeting
A joint meeting between the Associates
Council and the Board of Directors was held on
March 9 at the EPAB offices. During the meet-
ing Associates Council Chair Sam Shallenberger
was introduced by President Greg Bowling.
Sam informed the gathered members about plans
that he is making for upcoming events.
Board members were able to meet some of the
newer members of the Associates Council and
welcome them to the working agenda of a board
meeting. It was the first time in recent history
that there was a joint meeting of the Board and
Associates but the learning experience was
worth the time. Wally Wallace, new to the EPAB
through longtime member JOBE was excited
about the meeting. “I think it was a good thing
to see how the board operates and also important
to know the amount of work that goes into being
on the board. I enjoyed it and look forward to
representing JOBE in the Association,” he said.
Meanwhile Sam Shallenberger was enthusias-
tic about the direction of the meeting and the
larger number of new faces in the crowd. “This
shows me that we are continuing to grow and to
make the EPAB a good place to meet new con-
tacts,” Shallenberger added.
Several Past Presidents attended and added
significantly to the meeting . Our thanks to all
the Associates who attended and to the Board for
the gracious welcome.
find us on facebook:elpasobuilders
BUILD abetter socialnetwork!
EL PASO ASSOCIATION OF BUILDERS
ASSOCIATES COUNCIL
Young Designers
The Associates Council presentsThe EPAB/Young Designers Golf Tournament
Painted DunesDesert Golf ClubTuesday April 19
Registration: 11 a.m. Shotgun start: 12:30 p.m.
Call 778-5387 to sign up your six person team or for
sponsorship opportunites
SponSoreD BY:
Dinner Sponor:
Join us
for a fun
filled day!
El Paso Building Materials
Builders Outlook10APRIL 2011
Young home
buyers will lead
housing market
recoveryGeneration X –young families and adults
ages 31 to 45 – are likely to lead the homebuying recovery as it gets underway,according to real estate experts who spoke atan educational webinar produced by theNational Association of Home Builders(NAHB) in partnership with Buildermagazine
These potential home buyers are mostlikely to think it's a good time to get off thefence – and have strong opinions about thedesign features their new homes willinclude.
At 32 percent of the population of home-buying age – generally defined as those whoare at least 30 years old, the Gen Xpopulation cohort isn't the largest, but it's themost mobile, said presenter MollieCarmichael, principal of John Burns RealEstate Consulting in Irvine, Calif. "They arein full force with their careers and they needto accommodate growing families," shesaid.
In sharp contrast, even though theyconstitute 41 percent of prospective homebuyers, Baby Boomers continue to wait forthe market to improve, and their decisions todelay retirement also delay their decisions todownsize into a smaller home, Carmichaelsaid.
Most of the 10,000 buyers and potentialbuyers in 27 metro areas that the consultingcompany surveyed were optimistic about anew home purchase, with between 85percent and 89 percent saying that it was agood time to buy a home. Only 13 percentsaid they thought home prices wouldcontinue to fall, further evidence that it's"not all about price," she said. "They wantsomething compelling, from a design orpersonalization standpoint," saidCarmichael.
In addition, though the average home sizeis shrinking, a majority of prospectivebuyers said they would like a bigger homethan the one they have. "These are first-timebuyers or younger families looking for moreroom to grow," she said.
Seventy percent said that they werewilling to pay $5,000 more for a greenhome, but those responding to the surveysaid that they expected new homes toalready have many green technologyfeatures. They also said they would pay apremium for dark wood cabinets, a separatetub and shower and a fireplace in the livingroom, and more preferred a great room overformal spaces.
And while community amenities areimportant to Gen X buyers, 46 percent saidthey prefer a home in a large-lot, suburbandevelopment, versus the 21 percent lookingfor a traditional or "walkable"neighborhood.
Webinar panelist Heather McCune,director of marketing at Bassenian/LagoniArchitects in Newport Beach, Calif., alsoemphasized that design will be important ingenerating sales in the emergingmarketplace. "The notion of 'build it andthey will come' no longer works. Designmatters," she said.
McCune said buyers are looking forhomes with a connection between indoorand outdoor spaces, even in colder climates,to create the perception of greater home size,even if the space is only usable for part ofthe year. They also want more storage, anopen floor plan and flexibility in the garage.
"While Gen X numbers are smaller thanthe birth cohorts before and after them, theirnumbers have been enlarged by steadyimmigration," said NAHB Chief EconomistDavid Crowe. "Gen X may wait longer thantheir predecessors to establish their ownhousehold or buy a home because of therecent recession impacts, but the trends arestill likely to occur as they have for pastgenerations." -NAHB
The United States Department of Labor'sOccupational Safety and HealthAdministration (OSHA) has issued a directiverescinding the Interim Fall ProtectionCompliance Guidelines for ResidentialConstruction.
Regulation states as an employer, you shall providea training program for each employee who might beexposed to fall hazards.
Date: April 21, 2011 1:30pm-4:30pmLocation: EPAB Office, 6046 Surety DriveCourse Length: 4 Classroom Hours
Course Objectives: This training teaches theimportance of recognizing fall hazards, using thecorrect fall protection, providing a detailedillustration of the various types of fall protection andhow to properly use them to avoid a deadly fall.
Topics• Hazards • Recognizing hazards• The six foot rule• Fall Protection Systems • Types of fall protection systems• Guardrails• Warning Lines• Safety Monitors• Covers• Personal Fall Protection • The Body Harness• The Body Belt/Safety Belt• Lanyards• Anchorage point• Swing falls• Locking snaphooks • Protection from falling objects
Cost $35. Call EPAB 778-5387 for reservations
OSHA FALL COMPLIANCE CLASS
The El Paso Association of Builders has been a part of theincredible growth of El Paso for over sixty years.During that time, the housing market has seen a lot of changes.But never before has there been a better time to buy a new homein El Paso.Our builders offer El Pasoans value, variety and a vested interestin our community. If you are considering buying a new home, thetime is now.
www.elpasobuilders.com
It’s a great time to buy anew home in El Paso.
www.swher.com
5400 Suncrest Dr. C-6 El Paso, Tx. 79912
Ph. (915) 613-4168
Fx. (915-833-6437
SENERCONSouthwest Energy Conservation, LLC
www.energystarelpaso.com
Change the World...
One Home at a Time...
7365 Remcon Circle El Paso, TX 79912
Builders Outlook APRIL2011 11
Your EPAB Membership can make
a vacation easy on your wallet!
Members of the El PasoAssociation of Buildersenjoy many exclusivediscounts from some of thefinest merchants in thecountry.
For Example:
As a member of the National
Association of Home Builders
you will receive an additional
20% off the “Best Available
Rate” at participating locations
every time you travel.
For information go to:
www.nahb.org
call 778-5387
Showroom: 2131 Missouri
915 • 533 • 6045 fax • 533• 6096
Thomas R. Brown, Owner
Builders Outlook12APRIL 2011
April 5
Associates Council
3:30
EPAB Office
April 13
Board Meeting and
General Meeting
3:30
EPAB Office
April 19
Young Designers Golf
Tournament
Painted Dunes
April 21
Fall Compliance
1:30-4:30
EPAB Office
April 27
Land Use meeting
12 Noon
EPAB Office
RENEWALS
SODA SPONSOR
Area Iron & Steel Works, Inc.
Atrium Homes
Aztec Contractors, Inc.
Bain Construction
Bank of Texas
Century 21 APD
Code Compliance Inspections, PC
Compass Bank
El Paso Community College
El Paso Door Company
El Paso Honda
Franklin Door & Trim
ICON Custom Home Builder, LLC
Jan-Car Inc.
JKS Homes
Majestic Realtors
Moscato Homes
Mountain Vista Builders
Ortiz Plumbing
Paso Del Norte Land Development, LLC
Post Tension Steel
Quality Craft Homes
Rio Roofing
Saguaro Corporation
Service Master by Althouse Cleaning, Inc.
Sher-wood Fine Wood Designs. LLC
Soils Mechanics
Southwest Land Development Service
Texas Southwest Floors, Inc.
United Bank of El Paso Del Norte
Vonanza Construction
WPL Dupont Tyvek
Builders Outlook 13APRIL 2011
UPCOMING EVENTS
Thanks to our
APRIL SODA
SPONSOR:
El Paso Building
Materials
Membership News
11395 James Watt, Suite A-11 79936915-633-8002
Associates Council
Hi every one. We are still working on our
planed agenda for the rest of this year but so
far this is what it looks like. We have the
Annual Golf scramble tournament coming up
April 19th so get your clubs and some
customers and let’s have some fun at Painted
Dunes starting at 12:30. We are looking for
teams, goodie bag items, advertisers and help.
Contact the EPAB office at 778-5387 for more
information.
We’ve talked about having a meeting and
outing in Las Vegas, and things are coming
together. First, the information is coming in
from some very classy Hotels that aren’t just
the normal tourista kind of places. Not that
they’re bad or anything but we’d like to do
something a little more special for our group.
Air Lines going to Las Vegas vary and again
I’m working on making sure this trip is a
special one, so I’m looking at a variety of
options. I hope to have something for you by
the time we all meet for the Associates council
on April 5th at 3:00 pm at the EPAB.
Ray is working on the parking lot across the
street where we will hopefully be holding our
first annual EPBA Festival in June or July
sometime. The plan is to have a trade show, car
show, and our headline and Ray’s favorite
event The Menudo Cook Off.
Anyone up for bowling? July will feature a
bowling fun outing which promises to be
worth the small entry fee. Bowling lanes are a
great place to have fun, get out of the summer
heat, and meet with friends for a fun event.
Vicki Marcuse is heading this event up for us
and you know she does a great job.
I’d like to welcome Lance Van Deman from
JDW Insurance who’s agreed to help me and
the council by taking on additional
responsibilities as council chair in training. He
will be working hand in hand with me to make
this year as successful as we can while getting
ideas and events ready for next year. Lance
has great leadership skills and is a great and
dedicated member of the EPAB. Please help
me welcome Lance to his new volunteer post.
So as you can see we have a pretty full
calendar of events in the next few months and
if you would like to help on any of the
committees we welcome you with open arms.
That’s about it for now. See you at the council
meeting on Tuesday April 5th.
GUEST COLUMN
Builders Outlook14 APRIL 2011
Industry Reports
Getting ready for a peak season?
According to the Business & Legal Reports
safety website, workplace injury statistics
reveal that new employees are 5 times more
likely to experience a lost-time injury in the
first month of employment compared to the
experienced worker. Additionally, studies
show that 40 percent of all workers injured
on the job have been at it less than a year.
Given these facts, ensuring the safety of
the “newbie” is of utmost importance,
particularly where a business’s greatest asset
is its people. Equally, smart hiring practices
and new employee safety orientation
translate to preservation of the bottom line.
Here are some of the risks and concerns
that you should consider when hiring
inexperienced workers.
• New employee orientation and job training
and hazard training on the equipment and
tools associated with the job, emergency
evacuation routes, location of first-aid kits,
MSDSs, and items such as fire
extinguishers.
• Use of an orientation checklist while
showing the new hire the safety features of
the workplace can serve as documentation
of the facility safety tour.
• A hazard assessment of the work area
should be performed every time work
conditions change.
• During emergency situations, employ safe
work practices. Accidents can occur and do
occur unexpectedly (unfortunately).
• Hazard materials training is required for all
job site and field personnel.
• Superintendents hold mandatory weekly
toolbox talks.
• The safety manual should be made
available for inspection and found to be
comprehensive in scope.
• If needed, retraining all workers is also
important.
• Make communication among fellow
workers a vital part of your safety culture.
We need to be ever so vigilant of everyone
who works for us. Make safety and job
training a part of the entire company culture.
Let’s make sure we get our new workers
trained right, step by step initial worker
training.
Hiring Inexperienced
workers
Sam Shallenberger
Western Wholesale
Supply
Lupe AlanizA&E Environmental &
Safety Consultants
REALTOR/Builder
Make your home warm and inviting to
boost your home's value and speed up the sale
process.
The first step to getting buyers to make an
offer on your home is to impress them with its
appearance so they begin to envision
themselves living there. Here are seven tips
for making your home look bigger, brighter,
and more desirable.
1. Start with a clean slate
Before you can worry about where to place
furniture and which wall hanging should go
where, each room in your home must be
spotless. Do a thorough cleaning right down
to the nitpicky details like wiping down light
switch covers. Deep clean and deodorize
carpets and window coverings.
2. Stow away your clutter
It's harder for buyers to picture themselves
in your home when they're looking at your
family photos, collectibles, and knickknacks.
However, don't make spaces like mantles and
coffee and end tables barren. Leave three
items of varying heights on each surface. For
example, place a lamp, a small plant, and a
book on an end table.
3. Scale back on your furniture
When a room is packed with furniture, it
looks smaller, which will make buyers think
your home is less valuable than it is. Make
sure buyers appreciate the size of each room
by removing one or two pieces of furniture. If
you have an eat-in dining area, using a small
table and chair set makes the area seem
bigger.
4. Rethink your furniture placement
Highlight the flow of your rooms by
arranging the furniture to guide buyers from
one room to another. In each room, create a
focal point on the farthest wall from the
doorway and arrange the other pieces of
furniture in a triangle around the focal point.
In the bedroom, the bed should be the focal
point. In the living room, it may be the
fireplace, and your couch and sofa can form
the triangle in front of it.
5. Add color to brighten your rooms
Brush on a fresh coat of warm, neutral-
color paint in each room. Then accessorize.
Adding a vibrant afghan, throw, or accent
pillows for the couch will jazz up a muted
living room, as will a healthy plant or a bright
vase on your mantle. High-wattage bulbs in
your light fixtures will also brighten up rooms
and basements.
6. Set the scene
Lay logs in the fireplace, and set your
dining room table with dishes and a
centerpiece of fresh fruit or flowers. Create
other vignettes throughout the home-such as a
chess game in progress-to help buyers
envision living there. Use sheer curtains that
let in more light.
Make your bathrooms feel luxurious by
adding a new shower curtain, towels, and
fancy guest soaps. Judiciously add subtle
potpourri or scented candles.
7. Make the entrance grand
Mow your lawn and trim your hedges, and
turn on the sprinklers for 30 minutes before
showings to make your lawn sparkle. If
flowers or plants don't surround your home's
entrance, add a pot of bright flowers. Top it all
off by buying a new doormat and adding a
seasonal wreath to your front door.
April Meeting: 4/8/11 from 11:30-1:30 PM
at the Greater El Paso Association of
REALTORS®.
Speaker will be Segovia Homes and their
Education Topic will be New Home
Inspections.
Fostering harmony amongst home builders,
real estate professionals, and affiliate
companies
Angela Ochoa
GEPAR
Linda TroncosoSal Masoud
Land Use
� executive officers
Greg bowling, President
Tropicana Homes
del Huit, vice President
Cardel Design Group
frank arroyos, secretary/treasurer
Cisco Homes
sam shallenberger, associates council
Wholesale Supply
Kelly sorenson, immediate Past President
Vision Consultants
ray adauto, executive vice President
El Paso Association of Builders
� couNcil/committee cHairs
Affordable Builders Council Bobby Bowling IV
Associates Council Sam Shallenberger
Assoc. Co-Chair Lance Van Demon
Build PAC El Paso Randy Bowling
Desert Green Building Council Javier Ruiz
Industry Promotions Kelly Sorenson
Land Use Council Linda Troncoso
Sal Masoud
Adams Pro AM Committee David Bogas
Young Designer Award John Chaney
Code Committee Kelly O’Leary
Home Show Sam Shallenberger
Remodelors Miguel Herrera
Membership Drive Mike Santamaria
Finance Committee Kathy Carillo
Education Committee Frank Spencer
� advisorY to tHe board
J. Crawford Kerr, Attorney, Firth, Johnson
& Martinez
� board of directors
Danny Andrus, Trinity Homes
John Arranda, Southwest Securities Bank, FSB
Joe Bernal, Joe Bernal Insurance
David Bogas, EPT Communities
Doug Borrett, Karam Co.Edmundo Dena, Accent Homes
Ted Escobedo, Snappy Publishing
Art Garcia, El Paso Door
Juanita Garcia, ICON Custom Home Builder,LLC
Danny Gerard, Desert Agave Builders, LLC
Miguel Herrera, Simply the Best Custom Homes
Lorraine Huit, Cardel Design Group
Walter Lujan, Dawco Home Builders
Bruce Meyer, JDW Insurance
Robert Najera, Roberts Construction
Kathy Parry, Hunt Communities
Bob Paschich, Oeste Homes
Kathy Rose, Builders Source
Regina Sanchez, Bank of Texas
Sam Shallenberger, Western Wholesale
Frank Torres, GMF Homes
Paul Zacour, Zacour & Associates
� tab state directors
Doug Borrett, Karam Co., Life Director
Randy Bowling, Tropicana Homes
� NatioNal directors
Bobby Bowling IV.
Demetrio Jimenez
2010 builder member of the Year
Mike Santamaria
Mountain Vista Builders
2010 Pat cox award
Randy Bowling
Tropicana Homes
2010 associate of the Year
Javier Ruiz
Border Solar/Senercon
John schatzman award
Lorraine Huit
Cardel Design Group
Honorary life members
Brad Roe
Cliff Anthes
Wayne Grinnell
Chester Lovelady
Don Henderson
Anna Gil
Past Presidents
committed to serve
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.
© 2011 Builder’s Outlook
is published and distributed for the
El Paso Association of Builders
by Snappy Publishing
240 Thunderbird • Suite C
El Paso • Texas • 79912 915-820-2800
6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038
Mark Dyer
Mike Santamaria
John Cullers
Randy Bowling
Doug Schwartz
Del Huit
Herschel Stringfield
Robert Baeza
Bobby Bowling, IV
Rudy Guel
Anna Gill
Bradley Roe
Bob Bowling, III
EH Baeza
NatioNal associatioN of
Home builders
(800) 368-5242
texas associatioN of
builders
(800)252-3625
www.elpasobuilders.com
By Sal Masoud
I would like to bring to your attention few
items that Land Council is currently
monitoring in cooperation with the City of
El Paso and the International Boundary
Commission IBWC.
FEMA flood maps:
Finally, FEMA has issued a press release
on March 2nd, 2011 inviting the public to
participate in providing comments, appeals
or protests in regards to the issued
preliminary flood maps.
Homeowners, landowners, renters and
business owners in El Paso County have
from March 4 – June 2, 2011 to provide
general comments, or to file an appeal or
protest if there are possible errors on the
map.
An appeal is a formal objection to
proposed base flood elevations. Appeals
must be based on technical data that show
proposed maps to be scientifically incorrect.
Anyone who makes an appeal must include
the method, data and analysis used to
support the claim.
Protests challenge information or data
other than base flood elevation, such as
changes to flood plain boundaries, corporate
limits, or roads and road names.
Comments, appeals and protests should
be sent to FEMA through the local
floodplain administrator.
Floodplain Administration
2 Civic Center Plaza-4th
El Paso, Texas 79901
(915) 546-2015
Information may also be submitted
electronically at
To view the current and proposed maps,
please visit the City’s website
www.elpasotexas.gov under News &
Notices, FEMA Flood Zone Map.
You may also Contact a FEMA Map
Specialist at 1-877-FEMA MAP (1-877-
336-2627);
Once all comments/protests are resolved,
FEMA will notify communities of the
effective date of the final maps.
I want to encourage all concerned
homeowners, landowners and business
owners to contact the City of El Paso and do
file a protest or an appeal objecting the fact
that these maps were issued without a flood
base elevations for most of the areas in the
upper valley.
We at Land Use council will continue to
coordinate with the City of El Paso and
USIBWC to speed up the process to achieve
the A-99 status for the affected areas of the
Upper Valley. This status will allow the
continued building and development
activity until the Levees are fully certified.
New Grading Ordinance
A public hearing is scheduled for March
29, 2011 at City Council to discuss the Final
Grading Ordinance as modified by the City
of El Paso including major changes to the
current Grading Ordinance in regards to
grading in Natural Drainage Paths.
I am concerned that the City will adopt
such ordinance without clearly identifying
the limits of such natural drainage paths that
could encompass most of the arroyos rim to
rim within the City of El Paso.
Please try to attend the public hearing to
voice your concern.
Smart Growth Implementation
On March 29, 2011, City Council will
also discuss several issues related to Smart
Growth. Some of these issues as follows:
• Designing Walk able Urban
Thoroughfares
• Amend Title 19 to allow parkland
dedication of less than one acre.
• Amend Title 19 to require tree planting as
part of park improvements
• Amend Title 19 to revise standards for
pocket parks to forego frontage on all
sides
• Review and recommend revisions to Title
19 to encourage different park typologies
• Amend Title 19 to require a building line
on plats
The El Paso Association of Builders has been a part of the
incredible growth of El Paso for over sixty years.
During that time, the housing market has seen a lot of changes.
But never before has there been a better time to buy a new home
in El Paso.
Our builders offer El Pasoans value, variety and a vested interest
in our community. If you are considering buying a new home, the
time is now.
www.elpasobuilders.com
It’s a great time to buy anew home in El Paso.