Builders Outlook Jan 2012

Issue 1 2012 Building El Paso’s tomorrow today

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Builders Outlook

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www.elpasobuilders.com

EPAB parade float finds new home at Fort Bliss

Builders applaud fed report on housing

The El Paso Association of Builders

never thought that a parade float would

bring as many smiles as it has. Nor did

they anticipate that the float would live

well past the ride down the parade but it

has. The float was built for the 75th

annual First Light FCU Sun Bowl Parade

held each year at Thanksgiving Day. The

association thought that incorporating a

float into the parade would be a good

way to kick off their own 65th

anniversary celebration. The theme for

the parade was “Under the Sun”. The

association executive officer Ray Adauto

drew up a conceptual rendering of a

gingerbread house float, presented it to

his executive team and work got started.

The concept soon turned into a design,

then into the build. Construction crews

built a 10 foot by 12 foot wood structure

on top of a trailer. Over a two week

period the float was decorated with

oversize candy canes, licorice sticks,

candy corn, and lollipops. A four foot tall

gingerbread man greeted everyone at the

front door. The oversize shimmering sun

piñata was hung over the house as it road

down the parade route. Over 40

members of the association and their

children or grandchildren rode and

walked alongside on the 3 mile route.

The float won an honorable mention

from the parade judges and was featured

on the live parade telecast. After the

parade the gingerbread house float was

put in storage while a decision was made

on what to do with it. Because it had

been constructed so well it was felt like it

could have a second life, one in which

the association hoped could be used in

its themed condition. Several

considerations were made but one kept

coming up over and over again. Fort

Bliss, Texas and the soldier’s kids.

Contact with the Garrison

Commander, Colonel Joseph Simonelli,

Jr. got the association on track with the

potential donation. The colonel was

candid saying that because it was a

donation that certain steps had to be

processed for an approval, including a

letter to the Department of the Army.

Notification of acceptance was received

by the EPAB and the gift delivery was

worked out. On January 8, 2012 the

United States Army, and in particular

the US Army Installation Management

Command, Headquarters, Untied States

Army Garrison, Fort Bliss, Texas

accepted the gingerbread house on

behalf of the Child and Youth Services

Skies Unlimited Program. The

gingerbread house was now in the

Army.

The gingerbread house was

immediately swarmed on by waiting

pre-school children whose parents are

active duty military, some on duty in

Afghanistan and other hot spots around

the globe. In making the presentation

on behalf of the association 2012

President Frank Arroyos told the crowd

and media that this gift is just another

symbol of the support and love the

association has for our military

community. With the smiles and

laughter coming out from inside the

gingerbread house we knew that was all

the thanks needed.

More photos page 8

The National Association of Home

Builders (NAHB) concurs with a

finding by the Federal Reserve that

excessively tight mortgage lending

standards are hampering a housing and

economic recovery.

“The Federal Reserve’s report to

Congress confirms what we have been

saying for some time: That

extraordinarily tight credit conditions

are preventing creditworthy borrowers

from obtaining home loans and this is

harming the housing market and the

broader economy,” said NAHB

Chairman Bob Nielsen, a home builder

from Reno, Nev.

Nielsen added that the lack of credit

extends to housing construction loans

as well, which is crippling the housing

industry and preventing construction of

new homes in markets that need and

want them. “In scores of markets across

the country that are exhibiting signs of

job growth and where the inventory of

new homes is nearly exhausted,

builders should be hiring workers to

break ground on new housing

developments,” he said.

In its message to Congress, the Fed

said that “restoring the health of the

housing market is a necessary part of a

broader strategy for economic

recovery.”

Housing can act as a job catalyst if

regulators and lending institutions

return to prudent underwriting

standards that do not exclude

creditworthy borrowers and if they

move to restore the flow of credit to

viable home building projects.

In normal times, housing accounts for

more than 17 percent of the nation’s

economic output. Constructing 100 new

homes creates more than 300 full-time

jobs, $23.1 million in wage and

business income and $8.9 million in

federal, state and local tax revenue.

With cash-strapped municipalities

across the land desperately searching

for new revenue sources, home building

can increase the property tax base that

supports local schools and

communities.

“Removing the obstacles limiting

access to mortgage credit and enabling

builders to obtain construction loans to

build in markets where demand is

firming is imperative to get housing

back on track, to put our nation back to

work and to keep the economy moving

forward,” said Nielsen.

Housing can act as a job catalyst if

regulators and lending institutions

return to prudent underwriting

standards that do not exclude

creditworthy borrowers and if they

move to restore the flow of credit to

viable home building projects.

Builders Outlook2 ISSUE 1 2012

Starting a new year always lends itself to

ponder and analyze what and how and with

whom we spent our energies on last year.

What did we accomplish in our personal,

business and spiritual lives? What could I

have done differently? What am I going to

do this time around to adjust and correct

those actions that weren’t to my benefit?

All these things come to mind or should

come to mind to be acted upon. 2012 will

be a monumental year in our generation due

to the fact that we continue to tread onto

uncharted territory, with unemployment at

an alarming high; tensions around the

world high mostly caused by frail

economies and strife. Economic problems

continue at home with continued home

foreclosures, excessive regulations on

lending, and some lack of confidence by

consumers. With the presidential elections

coming in November and all the lack of

leadership in Congress confuse an already

confused populace. We are bombarded with

so many negatives that sometimes we lose

sight of the most important things in life,

family and friends.

My goals and hopes for this year are to

earn the leadership role that you have

entrusted me with. Keeping open the

communication lines with our city

leadership and our related business

associations is a priority of mine. We

must keep housing affordable and

available in El Paso. We will continue our

efforts to lower bond requirements, less

permit fees, smaller government

involvement in our businesses and

working to bring about reform in lending.

All these things need attention from our

association. Most importantly you need to

know that it cannot be done by one or two

people, but it can be done by coming

together in a united front to bring forward

solutions and ideas to combat these issues.

I ask for you to get involved in the

association this year, bring your energy to

us, and give the El Paso Association of

Builders a fighting chance for change. We

will do our best to represent you and your

interests but we need your help and input.

Are you up for the challenge? Good

things happen when you bring the strength

of numbers to the fight. Happy New Year

and prosperity to you and yours.

Builders Outlook3

Frank

Arroyos

President,

El Paso Association

of Builders

President’s Message

During the weekly CountyCommissioners Court meeting, the countyattorney's office and the elections officegave the court a briefing about the currentstatus of our elections. Monday the 9th wasthe day that the Supreme Court was to heararguments on the proposed interim maps forHouse, Senate and Congressional districts.In a nutshell, all agreed that the electionprocess today is a mess.

The commissioners pointed out severalspecific problems with the delay andconfusion: candidates don’t know whatpolitical district to run in; voters don’t know

the specific date of the election; and votersdon’t even know where they are going tovote.

There are two reasons for this situation.The first finds its origin in the 2003-2004fight that we had when Tom Delay came toTexas to push redistricting legislation. Thesecond is more recent: the failure of toomany communities, especially whereHispanics are the majority population, tohave good voter turnouts.

In 2001, the previous census/redistrictingyear, the legislature created a bi-partisanmap that was approved in both houses withlittle debate. Certain state leaders were nothappy with the maps calling the "incumbentfriendly maps." Subsequently, the houseand senate maps were re-drawn by thelieutenant governor, the speaker of thehouse, land commissioner, comptroller andthe attorney general. This group is referredto as the Legislative Redistricting Board.

The work of the Board resulted increating a very partisan statewide plan asopposed to the partisan plan. Of course,from this came a lopsided majority. You

may recall that Delay was convicted in2010 of laundering campaign money thathelped elect that majority.

Then came the other fiasco with TomDelay who forcefully pushed that majorityto create similar congressional districts.Delay started to live in Austin, as opposedto tending to Congressional duties. Thepower of his questionable campaign fundscontrolled the agenda in the house. Whenhis redistricting plan came to the floor for avote, the famous quorum bustingDemocrats went to Ardmore and killed thebill. After three very expensive specialsessions, the districts that Delay wantedbecame law. That is how we arrived at thisposition.

In 2008, the focus of Texans was electinga new president. The spirited race betweenHilary Clinton and Barack Obamamotivated voters who hadn’t votedregularly. In the general election ofNovember 2008, the voters once againcreated a balanced house. Unfortunately, itonly lasted two years as the absence ofvoters gave the advantage to the Tea Party

movement. With a super majority, theconservative leadership created districtsthat eventually were unacceptable to theU.S. Department of Justice and to thefederal courts.

I think Texas would have been better offif the original bi-partisan redistricting planshad been accepted and put into place. Thehuge amount of money spent to buy newredistricting maps cost communities like ElPaso millions in reduced revenues from thestate; perhaps billions. One funding projectof over $50 million in 2003 was removedfrom El Paso to Midland; the seat of thespeaker. More recently, average dailyattendance funding to El Paso schooldistricts were stifled at about $5400 perstudent as opposed to as much as $11,000per student in wealthier communities.

We can't stop corrupt leaders fromcontrolling agendas. But we can deny themthe power they need by voting in strength inall elections in the best interest of ourcommunity.

Election process is a mess

Chente Quintanilla

State Representative

Guest Perspective


The month of January is usually a timeof change, a time when we take stock overwhat we accomplished or left undone theprevious year. Looking over at 2011 I haveto say that as an association we took somesteps forward. The locomotion shouldcontinue into 2012, at least from what itlooks like today.

Here’s how I rate our accomplishmentslast year:

• City elections. Without a doubt theelection pitted pro-business candidatestalking about how anti-business the citywas. That resounded with the votersand two newcomers were elected.

• City council. Efforts by the EPAB tobring a fact filled face to face meetingwith city council, the mayor and the

city manager proved fruitful. Wecalled it our local Rally day and weplan on doing it annually.

• Residential codes. Efforts by ourmembers resulted in local changes tothe 2009 Codes the city implemented.Input from builders and suppliers gavethe city options that they agreed toresulting in substantial savings to theindustry.

• Construction Bond reduction. Aftermaking the issue of the highest permitbond in Texas during the city electionscity staff worked with the associationand followed a recommendation toreduce the increase by half.

• Fire Sprinkler option. Enacted andsigned into Texas law was theagreement to make fire sprinklers innew home construction optional ratherthan mandatory as in other states.Savings to home builders andconsumers in the millions of dollarsannually in costs and inspections.

• Staying in business. A number ofhome builder associations closed in2011 but El Paso remains open.Substantial loss of revenues caused us

to tighten the belt but still offer coreservices while not compromising thenetworking aspect of belonging to anassociation. Leadership took lead inmaintaining the connections at the stateand national associations.

Looking these over again begs thequestion as to why someone wouldquestion whether being a member of the ElPaso Association of Builders has value. It issomewhat irritating to hear that but mostlyit’s more from a lack of involvement thatthose who leave the organization fail toassociate with their value of membership.One needs to remember that this isn’t asocial club, a hangout, or a money makingventure. It’s a trade association and itinvolves politicking. It involves giving avoice to issues plaguing the members. Itaffectively challenges those in authority todo the right thing for every business that iseven remotely connected to new homeconstruction. What some business peopledon’t connect is that if a regulation, code orrule hampers the construction of newhomes then it hampers their businesses aswell. I wonder why someone who is smartenough to conduct business (especially

those in the related real estate industrieslike mortgage, banking, or title businessesjust to name a few) can’t “value”membership. Really? But I won’t wastevaluable space talking about those whodon’t see it, and I’d rather spend time withthose who do. Take for instance JoeBernal, or Ken Wade, or Javier Ruiz. Orhow about Bill Word, Debbie Bowen orGerald Miller? May you know KathyCarrillo, Bob Kotarski, or Burt Blacksher?Art Garcia, Art Gamboa, or Jamie Zubiate?Cecil O’Hagan, Sharon Drury or JohnRomero, Lorraine Huit, Rob Tollen, or anymyriad of names of members. Thesediverse business people know the value ofmembership and they support the industryefforts by supporting the builder membershere. They know that not supporting thetrade association would cause there to be avoid in the political and business landscapeof El Paso.

So let me say thank you to all of ourmembers who through difficult times haveseen the value of renewal and joining. Wewill continue the good fight with your helpand support. Let’s have a good year.

Perspective

Ray Adauto,

Executive

Vice President

EPAB

New year, new reasons to benefit from your membership

Showroom: 2131 Missouri

915 • 533 • 6045 fax • 533• 6096

Thomas R. Brown, Owner

Builders Outlook 5Issue 1 2012

By an overwhelming margin, Americanvoters strongly value homeownership andwould oppose efforts to weaken oreliminate the mortgage interest deductionor diminish a federal role to help qualifiedhome buyers obtain affordable 30-yearmortgages, according to a new nationwidesurvey gauging likely voters’ attitudestowards homeownership and housingpolicy issues.

“The American electorate is sending aclear message that owning a home remainsa cornerstone of the American Dream andpreserving a federal commitment tohomeownership is essential to maintain athriving middle class and get housing andthe economy back on track,” said NeilNewhouse, a partner and co-founder ofPublic Opinion Strategies.

Conducted on Jan. 2-5 on behalf of theNational Association of Home Builders bythe Republican and Democratic pollingfirms of Public Opinion Strategies inAlexandria, Va., and Lake ResearchPartners in Washington, D.C., thecomprehensive survey of 1,500 likelyvoters includes data from key political“swing areas,” including National Journalpolitical analyst Charlie Cook’s swingHouse and Senate seats and StuartRothenberg’s presidential swing states.The survey, which has a margin of error of±2.5 percent, is a follow-up to a similarnational poll conducted last May.

The poll shows that three out of fourvoters – both owners and renters -- believeit is appropriate and reasonable for thefederal government to provide tax

incentives to promote homeownership.This sentiment cuts across regional andparty lines, with 84 percent of Democrats,71 percent of Republicans and 71 percentof Independents agreeing with thisstatement.

Also, two-thirds of respondents say thatthe federal government should help homebuyers to afford a long-term or 30-year,fixed-rate mortgage.

Moreover, 73 percent of voters opposeeliminating the mortgage interestdeduction. These figures held firm acrossthe political spectrum, with 77 percent ofRepublicans, 71 percent of Democrats and71 percent of Independents against doingaway with the mortgage interestdeduction.

Meanwhile, 68 percent would be lesslikely to vote for a congressional candidatewho proposed to abolish the deduction, afigure that was virtually identical across allparty affiliations (69 percent ofIndependents and 68 percent of Democratsand Republicans).

A majority of voters are also againstproposals to reduce the mortgage interestdeduction, eliminate the deduction forinterest paid for a second home, limit thededuction for those earning more than$250,000 per year, scale back thededuction for home owners withmortgages above $500,000 and do awaywith the deduction for interest paid onhome equity loans.

“With the 2012 election season in fullswing, candidates running for the White

House and Congress would be wise toheed the will of the American voters, whohave expressed broad support forgovernment policies that encouragehomeownership and oppose efforts tomake it more difficult to get a home loanand to tamper with the mortgage interestdeduction,” said Celinda Lake, presidentof Lake Research Partners.

Among the poll’s other key findings:

• 96 percent of home owners are happywith their decision to own and 84 percentwho are “underwater,” or owe more ontheir mortgages than their home is worth,expressed the same sentiment.

• 79 percent of home owners would advisea family member or close friend juststarting out to buy a home, and 69percent of those who are underwater ontheir mortgage would offer the sameadvice.

• 74 percent said that despite the ups anddowns in the housing market, owning ahome is the best long-term investmentthey can make.

• Homeownership and a retirementsavings program are considered byvoters to be their best long-terminvestments.

• 78 percent of respondents said thatowning their own home is very importantto them.

• Nearly seven out of 10 voters who arenot currently home owners (68 percent)

said it was a goal of theirs to buy a home.• Job uncertainty and saving for a

downpayment and closing costs are thebiggest barriers to buying a home.

The survey findings are consistent withthe results of other public opinion surveys.In a New York Times/CBS News pollconducted in June, 89 percent said thathomeownership is an important part of theAmerican Dream and more than 90percent indicated that it is important forthe federal government to continue themortgage interest deduction.

According to a Pew Research Studyconducted last March, 81 percent ofrespondents agree that buying a home isthe best long-term investment a person canmake and 81 percent of renters surveyedsaid they would like to buy a house.

“Even in a down housing market,homeownership remains a core Americanvalue, with the vast majority of citizenswho do not currently own a home sayingthey want to buy a home,” said BobNielsen, president of the NationalAssociation of Home Builders and a homebuilder from Reno, Nev. “Those runningfor office in November need to understandthat voters will not look kindly on anycandidates who seek to dismantle thenation’s long-term commitment tohomeownership.”

Poll results can be downloaded atwww.nahb.org/homeownershippoll.

Voters Place High Value on HomeownershipOppose Policies That Make It More Difficult to Own a Home

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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.

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By Tami Luhby @CNNMoney

NEW YORK (CNNMoney) -- The

president's efforts to revive the housing

market have largely failed. But is that

entirely Obama's fault?

“I don't think anyone could have done

anything to stabilize the housing

market,” said Ed Jacob, executive

director of NHS Chicago, which

provides homeownership and foreclosure

prevention services. “This housing

market was in far worse shape than

anyone knew.”

Obama took office in 2009, promising

swift action to address the mortgage

crisis. He quickly unveiled his signature

foreclosure prevention program, known

as HAMP, and his refinance program,

known as HARP.

But the HAMP program, which was

designed to lower troubled borrowers'

mortgage rates to no more than 31% of

their monthly income, ran into problems

almost immediately. Many lenders lost

documents, and many borrowers didn't

qualify. Three years later, it has helped a

scant 910,000 homeowners -- a far cry

from the promised 4 million.

HARP, which was intended to reach 5

million borrowers, has yielded about the

same results. Through October, when it

was revamped and expanded, the

program had assisted 962,000.

Meanwhile, more than 3.5 million

people remain behind in their mortgage

payments and more than 1.9 million

homes are in foreclosure. And home

prices have fallen for six months

straight.

One of the main problems with

Obama's foreclosure prevention program

was that the housing crisis had already

spiraled beyond unaffordable mortgage

rates. Homeowners were defaulting

because they didn't have jobs -- and the

administration's effort did little to help

them.

In response, Obama rolled out a

multitude of initiatives designed to help

the underwater and the unemployed. But

few of them have had much impact.

“He focused his gun in the wrong

place,” said Anthony Sanders, a real

estate finance professor at George

Mason University. “The administration's

approach is to kick the can down the

road. That doesn't lead to a recovery and

just strings the problem along.”

But the president deserves points for

having the Federal Housing

Administration step in to provide

mortgages for homeowners and for

spurring homebuying with a tax credit,

said John Burns, head of John Burns

Real Estate Consulting. They staunched

the bleeding in home sales and values.

The Federal Reserve has also tried to

help by keeping mortgage rates at record

lows.

At the same time, though, the

economy has remained weak.

Unemployment is still high, consumer

confidence is still low and banks are still

hesitant to lend.

And Congress and the president

remain at odds over how to spur job

creation, which many say is the key to

stabilizing the housing market.

“Obama was in many ways hemmed in

as to how to effectively and positively

affect the housing crisis,” said Gabriel

Stuart, director of UCLA's Ziman Center

for Real Estate. “The economy was

moving under their feet.”

Missed opportunities

One thing some experts say Obama

could have done is required servicers, as

well as Fannie Mae and Freddie Mac, to

write down the principal balance on

loans. This, however, has been a very

controversial step because it would have

forced large losses on banks and the

government-controlled mortgage finance

companies.

But at least the administration could

have come down harder on the mortgage

servicers, forcing them to expand and

improve their foreclosure prevention

processing procedures more quickly,

experts said.

In Phoenix, Obama's foreclosure

programs are helping some people, but

many more could take advantage of

them if the administration had taken a

harder line with servicers, said Patricia

Garcia Duarte, chief executive of NHS-

Phoenix, which counseled 1,800

delinquent homeowners last year.

“The missing ingredient was that it

was a voluntary program,” she said. “If

it hadn't been, we would have had much

better results.”

Has Obama's housing policy failed?

The City of El Paso is undertaking two

important initiatives to improve its service

to the homebuilding industry. The first is a

rebidding of third party contracts which

provide inspection services to homebuilders

as an option to City inspectors. A previous

effort to expand this third party option to

plan review was only partially successful.

In mid October the City suspended the

requirement that plan review include the

zoning and land development reviews,

leaving that task to City plan reviewers.

The City of El Paso remains committed

to permit the building of residential homes

under the Third Party scheme as fast as

practical in an appropriate and equitable

manner. The current rebid has been

carefully crafted to allow third parties to

keep the current scheme and level of service

in place for homebuilders who prefer the

status quo. Once successfully bid, the bid

solicitation will also permit third party

providers to offer inspection services,

complete plan review, or the partial plan

review. Additionally, the scope of services

is clarified so third party providers will

know City requirements.

A scope of services for commercial

structures is also being developed in a

separate solicitation.

Any inquires regarding the bid

solicitation process should be directed to

the Purchasing Department of the City.

Inclusively, in an effort to maintain a

continuous flow of projects and prevent

backlogs in the plan review and inspection

of private projects, the Building Permits &

Inspections Division recently altered the

plan review process for all new residential

projects.

Plans that require minor revisions will be

returned for revisions, however, permits

will now be issued simultaneously. In this

manner, minor revisions to plans can be

conducted concurrently with permit

issuance to prevent delays in initiating

projects. Inspection staff will conduct their

inspections with knowledge of the revisions

and/or alterations required in the field. If

projects require major or significant

revisions, those revisions will still need to

be completed prior to the issuance of a

permit. As part of this process, all

corrections must still be made by final

inspections.

As we move forward in implementing

these service improvements, we ask for

your continued cooperation to address this

important transition. However, immediate

improvement in turn around of plan times

and permit issuance are anticipated in a

significant number of cases.

Builders Outlook 7ISSUE 1 2012

By R. Alan Shubert,

P.E., C.B.O.

Guest Perspective Two key strides in place to enhance processes

Your EPAB Membership computes to

Big sAvingsMembers of the El Paso Association

of Builders enjoy many exclusive

discounts from some of the finest

merchants in the country.

For Example:

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computers. Call 800.695.8133 and Mention

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For information go to:

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call 778-5387

Empty Bowls is an international grassroots effort to fight hunger.The basic premise is simple: Potters and other craftspeople, educa-tors and others work with the community to create handcraftedbowls. Guests pay $15 for a ticket and are invited to sample soupsmade by culinary students and are given a bowl to keep as a re-minder of all the empty bowls in the world. The money raised isdonated to El Pasoans Fighting Hunger. (Formerly known asthe West Texas Food Bank.)

Each individual or group organizing an event designs itaround the needs of their own community and is responsiblefor their own event. This is where we are asking for help.Please consider making a corporate contribution to help endhunger in our region.

Statistics show that 1 out of 8 Americans struggle with foodinsecurity every day. Millions of people have lost their jobs dur-ing the most recent recession and the number of food stamp re-cipients has increased dramatically. Your help is needed nowmore than ever.

Please find the time, make the commitment, get involved. Your single effort can have a profound impact.

Please join us February 11, 2012, your help is needed!

El Pasoans Fighting Hungera 501 (c) (3) organization

(Formerly known as the West Texas Food Bank in El Paso)

Event to be held at El Paso Community College

Administrative facility9050 Viscount Building A

February 11, 201212:00-4:00PM

You are invited to help people in need

emptybowls

el paso

2.11.12

EPABON THE SCENE

Float donation to

Ft. Bliss

January Board of

Directors Meeting

The first regular board of directorsmeeting was held on January 10 at theEPAB office. President Frank Arroyosled the meeting with his executive teamand the members intently listening toreports from committees. The boardapproved the budget for 2012 and tookon the recommendation from the execu-tive board and finance committee toincrease associate dues beginning inFebruary, 2012. The adjustment in duescomes after over 15 years of holding theamount while the costs of doing businessincreased. Associate members who havenot renewed this year will be sent theincrease which works out to a little over$8 dollars a month. In other action theboard has sent the Land Use committeethe assignment to oversee the recentlypublished Plan for El Paso from the Cityof El Paso. There are wide rangingimplications for the residential and com-mercial builders who plan to build in thefuture El Paso.

Builders Outlook10ISSUE 1 2012

Sales of newly built, single-family homesedged up 1.6 percent to a seasonally adjustedannual rate of 315,000 units in November,according to newly released figures by the U.S.Commerce Department. This marks the thirdconsecutive monthly gain in new-home salesand the fastest pace of such activity since April.

“With today’s report, we have now seen threestraight months of modest gains in sales, startsand builder confidence in the market for newsingle-family homes,” said Bob Nielsen,chairman of the National Association of HomeBuilders (NAHB) and a home builder fromReno, Nev. “While the numbers are still quitelow on a historic basis, this upward trendindicates that the market is slowly finding itsfooting and bodes well for the months ahead.Our concern is that overly restrictive lendingconditions for both builders and buyers willconstrain this growth and postpone the arrival ofa recovery in housing and the overall economy.”

“Extremely favorable mortgage rates andprices are starting to lure buyers back to themarket in select areas of the country where theeconomy is strengthening,” said NAHB SeniorEconomist Robert Denk. “As a result of thisimproving demand and the limited amount ofnew construction that is taking place,inventories of new homes for sale continued tofall to another all-time record low in November.Such limited supplies should eventually lead tosome greater building activity in thoseimproving markets, which in turn will boost jobgrowth and further economic gains.”

Regionally, new-home sales were mixed inNovember. The South and Midwest posted gainsof 12.9 percent and 7.5 percent, respectively,while the Northeast and West posted respectivedeclines of 26.3 percent and 16.9 percent.

The inventory of new homes for sale fell 1.3percent to 158,000 units in November. This is anew record low and represents a six-monthsupply at the current sales pace.

Unionize Poster

Rule DelayedThe National Labor Relations Board

<http://www.mmsend1.com/link.cfm?r=134551713&sid=17017249&m=1696242&u=frmem&j=8455441&s=http://www.nlrb.gov/> has agreed to postpone theeffective implementation date of its employeecollective bargaining rights poster requirement— which includes a right to unionize notice —to April 30, 2012, depending upon the outcomeof several legal challenges.

The requirement was to go in effect on Jan.31, 2012, but at least three lawsuits have beenfiled seeking to block the posting requirement— including one by the U.S. Chamber ofC o m m e r c e<http://www.mmsend1.com/link.cfm?r=134551713&sid=17017250&m=1696242&u=frmem&j=8455441&s=http://www.courthousenews.com/2011/09/21/NLRB.pdf> . A federal court in Washington, D.C., hasdelayed its implementation until after hearinglegal challenges to the new rule.

The collective bargaining rights poster isavailable free for download on the NLRBw e b s i t e<http://www.mmsend1.com/link.cfm?r=134551713&sid=17017251&m=1696242&u=frmem&j=8455441&s=http://www.nlrb.gov/poster> . If the rule isimplemented, the poster must be hung in aconspicuous place with other workplace rightsnotices.

The rule will apply to all employers with agross annual business volume of $500,000 ormore, whether or not the employer operates anon-union shop or conducts business in a “rightto work” state.

The NLRB has indicated that it will notconduct inspections to determine if the poster isin place, but it may take action if an unfair laborpractices complaint is filed. The NLRB states onits website that it expects such complaints to beresolved if the employer subsequently agrees tohang the poster, but the agency could takefurther action if the employer refuses to hang theposter.

For more information, please visithttps://www.nlrb.gov/faq/poster

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Builders Outlook issue 1 2012 11

Builders Outlook12issue 1 2012

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E L PA S o

BUILDERSA S S o C I A T I o n o F


A look back...Moments in our 65 year history

The year was 2002. Ten years ago this association was being led by Herschel Stringfield of Winton Homes. His pres-

idency produced one of the top Parade of Homes and it featured some of the most innovative designs in home construc-

tion up to that point. In his welcome to the Parade attendees Herschel thanked the sponsors including BMC West, 84

Lumber, Jobe Concrete and Stewart Title of El Paso. He also thanked the developer, Southwest Land Development on

whose property twelve member builders showcased their latest plans.

The builders were Gaddy Construction with plan Casa Maria, touted as a Transitional plan with the California touch.

Natural stone was the material of choice and Gaddy offered the three bedrooms home accentuated with a “stunning” stone

fireplace mantel.

Cardel Homes offered the Tuscan, a three car garage, three bedroom home was “designed to fit the need of today’s

lifestyle.

Oeste Homes brought us the Vista Del Norte plan, a home in the Santa Fe charm and beauty with New Mexico vigas

and a kiva fireplace.

It was N. H. Designs that brought the Casa Rebecca to the Parade, a Mediterranean two story home “with natural light,

high ceilings and a gracious place to welcome friends and family”. This home featured three bedrooms and five bath-

rooms, an exercise room and covered patio.

Winton Homes presented The Michelangelo, a 3752 square foot two story home with Mediterranean styling with

columns, arches and niches. Winton touted its ISO 9001 certification with this home.

Cullers & Caldwell Builders showed the Parade attendees Hacienda Desierto, “a residence as rich and beautiful as its

desert mountain home.” The home featured Saltillo tiled floors, wood vigas and lintels, and an earthy selection of gran-

ite and colorful tiles. Curved walls were also a part of the floor plan.

Porter Homes presented Casa De Vista, a home with “vivid colors, bold simplicity, granite, tile, stucco and stone.”

Porter was committed to provide innovation and exceptional value.

These builders are but seven of the original twelve with five of them still building homes in El Paso. Cardel has since

transitioned into Cardel Designs and offers design services while still doing some construction. N.H. Designs belonged

to Naji Hajjar, a gifted home builder who tragically was lost to us in a motorcycle accident, ironically just prior to anoth-

er Parade of Homes. Gaddy, Winton/Flair, Oeste Homes, Cullers & Caldwell as well as Porter continue their member-

ship in the association. Many of the suppliers and vendors to the builders continue to be members as well. Southwest

Land Development still develops land in and around the city with developments west, Northeast, and east El Paso.

2002 seems like a long time ago, but these past ten years are witness to the ever changing landscape of home con-

struction and associated businesses in El Paso. Our plans for 2012 include a Parade of Homes and we are hopeful that

many of these 2002 builders and vendors will join us in it.

By Ray Adauto

A Look Back is a monthly feature of the El Paso Association ofBuilders publication the Builders Outlook. Look for more history of

the El Paso Association of Builders in coming editions.

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Builders Outlook 13ISSUE 1 2012

UPCoMInG EVEnTS

nEW MEMBERS

CARPET WAREHOUSE

Contact: David Fenigan

930 Raynolds

El Paso, Texas 79903

915-565-7847

Membership news

www.elpasobuilders.com

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E L PA S o

BUILDERSA S S o C I A T I o n o F


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Save the Date!

Join UsMarch 27

El Paso

Association of

Builders

Young Designers

Golf Tournament

Painted Dunes

12:30PM

Call 778-5387 for

information


Industry Reports

Associates�Council

Happy New Year to all of my fellow

associate members. It seems just last week

we were starting 2011 and here it is 2012

and we need to plan for another successful

year by the associates council . The

associates council is the fund raising back

bone of our association, in other words just

like in our own businesses we need to

make money to keep the association strong

and doing the political work that keeps us

all working. I would invite all of you to

become active in our associates council and

attend our meetings. We have a whole slate

of functions planned for this year but we

need new ideas and we need your help with

the events that we will be doing.

In the planning stages are the following.

January 20th through 22 Home and

garden show – call the office for details

February – Winter bowling tournament

date to be announced

April – spring Golf outing details to

follow. This is the fun tournament even if

you don’t play golf you need to be in this

one.

March- Probably a speed networking

date to be determined.

I think I will stop now as we all get the

Idea. We are working on some new projects

that prove to be fun and some that are

educational. Please attend our associates

council meeting which will be announced

soon .

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years

E L P A S O

BUILDERSA S S O C I A T I O N O F


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Documents

Builders Outlook Jan 2012