Transcript
Page 1: 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

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El Paso TimEs sTory sTirs quEsTions

City drives builder’s costs up, lowers tax revenue

Page 2: Builders Outlook April 2011

Builders Outlook2 APRIL 2011

Page 3: Builders Outlook 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

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Page 4: Builders Outlook April 2011

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:

[email protected]

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Page 5: Builders Outlook April 2011

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

Page 6: Builders Outlook April 2011

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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

Page 7: Builders Outlook April 2011

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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.

Page 8: Builders Outlook April 2011

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.

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Page 9: Builders Outlook April 2011

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

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Page 10: Builders Outlook April 2011

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

Page 11: Builders Outlook April 2011

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

Page 12: Builders Outlook April 2011

Builders Outlook12APRIL 2011

Page 13: Builders Outlook April 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

Page 14: Builders Outlook April 2011

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

Page 15: Builders Outlook April 2011

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

[email protected]

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);

email

[email protected].

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.

Page 16: Builders Outlook April 2011