builder outlook 0611

8/6/2019 Builder Outlook 0611

1/16

NAHB Washington, DC- Nationwide

housing affordability during the first quarterof 2011 rose to its highest level in the more

than 20 years it has been measured,

according to National Association of HomeBuilders/Wells Fargo Housing Opportunity

Index (HOI) data released in May.The HOI indicated that 74.6 percent of all

new and existing homes sold in the firstquarter of 2011 were affordable to families

earning the national median income of

$64,400. This eclipsed the previous high of73.9 percent set during the fourth quarter of

2010 and marked the ninth consecutivequarter that the index has been above 70

percent. Until 2009, the HOI rarely topped

65 percent and never reached 70 percent."With interest rates remaining at

historically low levels, today's reportindicates that homeownership is within

reach of more households than it has been

for more than two decades," said Bob

Nielsen, chairman of the NationalAssociation of Home Builders (NAHB) and

a home builder from Reno, Nev. "While thisis good news for consumers, home buyers

and builders continue to confront extremelytight credit conditions, and this remains a

significant obstacle to many potential homesales."Syracuse, N.Y., was the most affordable

major housing market in the country duringthe first quarter of the year. In Syracuse,

94.5 percent of all homes sold were

affordable to households earning the area'smedian family income of $64,300.

Also ranking near the top of the mostaffordable major metro housing markets

were Youngstown-Warren-Boardman,

Ohio-Pa.; Indianapolis-Carmel, Ind.;Warren-Troy-Farmington Hills, Mich.; and

Toledo, Ohio.Among smaller housing markets, the

most affordable was Kokomo, Ind., where

98.6 percent of homes sold during the first

quarter of 2011 were affordable to familiesearning a median income of $61,400. Other

smaller housing markets near the top of theindex included Monroe, Mich.;

Cumberland, Md.-W.Va.; Elkhart-Goshen,Ind.; and El Paso, Texas.

It continues to amaze the Associationthat year after year the economic well beingof the housing market in El Paso is

threatened with new fees and costs, saidRay Adauto, Executive Vice President of

the El Paso Association of Builders. For

years we have tried to point these statisticsto the local governments, especially the

City of El Paso, without much responseother than to raise fees for construction and

infrastructure, said Greg Bowling,

President of the EPAB.The bottom line is that independent

analysis done by the respected authority onaffordability for housing in a market backs

up our concerns and frustrations, Bowling

continued. El Paso is now in the company

of cities like San Diego, Honolulu and SanFrancisco on affordability according to the

latest statistics.

NAHB Washington, DC - With some

members of Congress actively pushing to abolish

Fannie Mae and Freddie Mac and end the federal

backstop for housing, the National Association of

Home Builders (NAHB) told Congress that

maintaining an appropriate level of government

support is absolutely essential to preserve financial

stability.

Testifying before the Senate Banking

Committee, NAHB First Vice Chairman

Barry Rutenberg, a home builder from

Gainesville, Fla., said that absent a federal

role to help reassure mortgage market

investors, the cost and availability of

mortgage credit would be subject to

unpredictable volatility.

The historical track record from the 1998

Russian crisis to the tragedy of Sept. 11

clearly shows that the private sector is not

capable of providing a consistent and

adequate supply of housing credit without a

government backstop, said Rutenberg.

Therefore, as the private market transitions

to assume a greater responsibility, there must

be a predictable, permanent federal role in

order to ensure a consistent supply of

mortgage liquidity and to allow rapid and

effective responses to market dislocations

and crises.

While NAHB strongly supports efforts to

modernize the nations housing finance

system, it is critical that any reforms be well-

conceived, orderly and phased in over time.

NAHB opposes legislation pending in the

House and Senate that would effectivelywind down the operations of Fannie Mae and

Freddie Mac without offering a clear vision

for the future housing system and a non-

disruptive transition to a new secondary

market framework. Similarly, NAHB

believes that more than a dozen short-term

legislative proposals offered by House

Republican lawmakers to reduce the support

Fannie Mae and Freddie Mac provide to the

mortgage markets represent a piecemeal

approach to reform that would disrupt the

housing market and could push the nation

back into a deep recession.

New legislative efforts would take a very

different tack from these proposals. Recent

bipartisan legislation (H.R. 1859) introduced

by Reps. John Campbell (R-Calif.) and Gary

Peters (D-Mich.) would replace Fannie Mae

and Freddie Mac with five private companies

that would issue mortgage-backed securities

that have government backing. Legislation

currently being developed by Rep. Gary

Miller (R-Calif.) would also include a

predictable government role in the secondary

mortgage market to preserve financial

stability in the market and maintain a stable

housing sector.

NAHB views the introduction of H.R.

1859 and Rep. Millers draft legislative

proposal as very positive developments as

debate on the future of the housing finance

system moves forward in Congress, said

Rutenberg. Maintaining a continuing and

appropriate level of government support is

necessary to promote investor confidence

and ensure liquidity and stability for

homeownership and rental housing.

Absent a federal backstop for housing,

Rutenberg warned that the 30-year, fixed-

rate mortgage, the major housing finance

tool for most Americans, would becomeincreasingly scarce and much more costly,

pricing many creditworthy borrowers out of

the marketplace. Similarly, the availability of

financing for multifamily housing would fall

woefully short of the growing need.

Qualified Residential Mortgages

Also of great concern to NAHB are

proposals unveiled in late March by six

federal agencies that would establish a

Qualified Residential Mortgage (QRM)

standard featuring a minimum 20 percent

downpayment on a home loan. Requiring 20

percent down would keep homeownership

out of reach for most first-time home buyersand middle-class households.

About 62 percent of first mortgages taken

out to purchase a home would not have

qualified under the proposed QRM standard

because they had down payments of less than

20 percent, according to LPS Applied

Analytics, a mortgage data firm.

NAHB estimates that it would take 12

years for a typical family to save enough

money for a 20 percent down payment on a

median-priced single-family home and other

research has found it would take even longer.

If buyers are denied access to affordable

housing credit, the shadow inventory of

foreclosed homes will not be drawn down, a

housing recovery will not take hold andeconomic growth will stall, said Rutenberg.

Moreover, low-down payment home loans

have been originated safely for decades and

are not what drove the housing lending

crisis, added Rutenberg.

Subprime, no-doc and other alternative

mortgage products crashed our economy, he

said. We believe the Administration and

regulators must acknowledge this fact and

offer a new plan that ensures a safe and

healthy mortgage market and keeps

homeownership affordable for working

American families.

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2/16

Builders Outlook2 JUNE 2011


3/16

By the time most of you read this the

Association would have had its first

general meeting in Las Vegas. The

planning for this has been going on for

months and its been an interesting

adventure for the guys working on it. First

let me thank Sam Shallenberger my

Associates Chairman for coming up with a

novel idea of mixing fun with work. His

conspirator of course is Ray Adauto and

between both of them we owe a round of

applause for actually having this comethrough. Id also like to thank all of the

members who looked at this trip as a way to

break out from the daily routine, enjoy a

visit to Las Vegas, and experience the first

ever foray into a meeting somewhere other

than El Paso. With our really good turnout

I think we have a future trip or two to look

forward to in 2012 and beyond.

While Las Vegas is always fun since I

love to play golf while Im there, I still have

another trip for the Association later this

month to Houston. Ray and I will be

leading our delegation to the Summer TAB

board meetings in Houston June 22-24. The

main topic of discussion will be the results

of the Texas Legislative year and how we

did as an organization. TAB is our main

lobbyist for issues pertaining to housing in

the Texas legislature, and Im proud to say

that we have an excellent group of lobbyists

working for us. In addition there are a lot of

TAB members who routinely go to Austin

to speak for and against legislation

including many of our own from El Paso.

The teamwork shown has paid dividends

for all of the Texas builders and Associates.

The preliminary reports from TAB indicate

that the legislation that was on TABs radar

went in our favor, overwhelming favor

actually. I will present you a full report

during our late June Board meeting to be

held after the TAB meetings.

While Im thanking folks Id really like to

thank Frank Spencer from Aztec

Construction who took on the education

Czar position this year. He has presented

some very timely and informative seminars

and coordinated other with some of our

specialty members, like our fall prevention

training given by A & E Environmental and

Safety Consultants. Well attended and

presented. The book keeping seminar also

brought the members some great

information on how to get your financials in

shape. The number one complaint we hear

from our financial members is that some of

us are not ready to present a financial

statement or proposal to a bank or credit

union for consideration. Things are tight

enough without having the right tools in

your tool box. Thanks Frank. I look

forward to more education for our

members.

Finally as you already know the

association is saying goodbye to our Vice

President Del Huit, who has decided to

move onto bigger and better things. He

stepped into the VP position at a time of

need within the Association. He is a Past

President with a love of our organization

and a caring hand where ever we need him.

Del has a couple of very well regarded

inventions that he is marketing and he is

finding success doing so. Our best wishes

and our sincere thanks for another job well

done. That means that Frank Arroyos will

serve as VP for the next six months, and

then take the office of President for 2012.

By that time Frank will have served as

treasurer and VP for nearly 16 months, a

good enough amount of time to get him

ready to be President. We will name our

selection to serve as Secretary Treasurer at

the upcoming board meeting. So with that I

wish you all good sales and a safe summer.

Greg

Bowling

President,

El Paso Association

of Builders

Presidents Message

Builders Outlook3

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4/16

Seven percent. Thats the number that

was reported as the voter turnout in city

elections for council districts. Seven

percent. Its no wonder that politicians do

what they want in this community. No

one is going to worry about answering to

the People if only seven percent actually

care enough to vote.

Standing in front of council is almost

pointless given the fact that only seven

percent of the constituency is engaged.

Why should a politician, at any level,

feel compelled to execute the will of the

people when only a few of the people

actually elect them? What fear would

you have as a politician if you only

needed 1,000 votes to be elected to a four

year term, controlling and doling out

hundreds of millions of taxpayer dollars

and controlling the future of a city? If you

said none, you are right. NONE.

Imagine the insaneness of having that

politician dictate YOUR future

indebtedness, tax rate, fees, etc. with the

mandate of the voters? What mandate?

I am so proud that I have won the hearts

of minds of my constituency but most

importantly that I am the overwhelming

voice of the people politicians are heard

to say on election night. Really? I mean,

can you sleep well at night knowing that

93% of the voters didnt even show up?

Are you really that significant? Or are

you so insignificant that only seven

percent voted. Seven percent over the two

weeks of voting. I just didnt have time

is a favorite excuse of those who dont

vote. Sorry, it doesnt make any sense.

Now days you dont even need an

excuse to vote early. While youre out

buying the next great sneaker, why not

step over to vote? Too easy. Too darn

easy. So shame on you who didnt

exercise your blood given right to vote.

(Yeah, Freedom isnt free you know.)

Shame on the politicians that think they

have a mandate with 51% of seven

percent. So when its all said and done,

and brother you are done, well done (as in

crispy done), dont fret. Our next

election could have a whopping thirteenpercent participate. Instead of just

millions of dollars think trillions of

dollars because it will be a national

election for President and Congress.

Change the numbers any way you want

this is still awful. Welcome to

Scottsdale, Texas. Home of High taxes &

higher fees; with low income and lower

voting turnout. No accountability wanted

here. Yes sir, the politicians dream come

true.

Strange weather patterns have been

showing up this year here and in other

areas of the country. The high winds,

dust, and all that it brings us is nothing

compared to the destruction suffered in

the South and Midwest. Tornadoes are

natures sledge hammer, bringing

destruction and death to the areas that

they touch down onto. Texas, Oklahoma,

Kansas, Missouri, and tornado alley are

somewhat used to this, and peoples lives

are on edge every year around this time.

You have seen the horrible destruction

that happened in Mississippi and

Alabama earlier this year, then the

horrific loss of so much of Joplin,

Missouri. Seeing the pictures and videos

will never fully impact us the way that the

witnesses and victims have been

impacted. Survivors always seem to live

with the guilt of surviving such a

devastating event. Why is one house

standing while neighbors around them

arent? Why am I alive yet so many

arent. During these events heroes

emerge from the rubble. Ordinary peopleput in extraordinary circumstances

reacting to that event in an unselfish way.

Thats what seems to be coming out of

this latest tragedy. It includes the story

told on NBC news about a young couple

who ran into the bathroom to escape the

furry of the tornado; with the young

husband placing his body over his wifes

to protect her. In the fleeting minutes it

took for the tornado to destroy their house

this young husband lay dead from a

punctured lung that debris from the storm

had penetrated. He gave his life

protecting her and in turn gave the rest of

us a love story of courage, strength and

commitment. I dont recall his or her

name frankly because I starred at the TV

mesmerized that such a story was even

possible. This wasnt a movie or a novel;

here it was in real life.

Dozens of stories like this one have

been written or are on some future page

of history. While all of the storms leave

devastation I also think of the one thing

that will also emerge from it: hope. You

see, in the following weeks, months and

years our industry will give that

community and the people in them some

hope as the wreckage is cleared, the piles

of debris cleared. That hope will come in

the sound of hammers and saws, trucks

rolling in with timber and concrete. Hope

will shine through as the walls of a home,

a business or a church go up one at a time.

With each will come a call to the future of

the community that life really does go on,

through the pain and through the miseryof it all hope is the faith we rely on at

times like this. Through tragedy comes

opportunity for healing and for newness.

With prayer and commitment all things

rise again. It is clear from the pictures we

see now that those communities have

both.

Pitiful voter turnout allows politicians to takecontrol of our city

Perspective


Ray Adauto,

Executive

Vice President

EPAB

Send us your comments.

E-mail to:

[email protected]

4655 Cohen El Paso, Texas 79924 915-821-3550 www.tropicanahomes.com

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5/16

Builders Outlook 5JUNE 2011


6/16


Every session there seems to be a

particular bill de jour as the French

would put it. Also, there are bills that

address problems that dont exist. This

year, it would seem the prize goes to the

same issue: elections.

A quick count showed that in excess of

60 bills were filed having some impact on

elections and voting. Based on most of the

testimony, the problem centered on voters

of Hispanic heritage. Most of the

testimony repeatedly referred to the south

Texas elections or the massive wave of

undocumented immigrants who vote en

masse at election time.

There may be some justification for the

concerns by the members who filed the

bills. After all, the growth of the number

of legal Hispanic voters has far

overshadowed the growth of any other

ethnic group. It is never easy to surrender

supremacy. It is too bad that the biggest

problem with Hispanic voters is that

turnout at elections is dismal; not that themajority are voting illegally.

Perhaps the most visible bill de jour was

the voter id bill. In working elections for

decades, I do not recall ever seeing

election workers allowing individuals to

vote without confirming their eligibility.

By all the public comments, you would

think there was actual evidence that

election workers were conspiring withvoters (let us be honest, the voters seem to

be Democrats that are the center of

attention) and passing unlawful voters to

the ballot machine. That is just not

the case.

The testimony by the Attorney General's

office confirms that. After investigating

over 20 million votes over several years,

the final count of those indicted was less

than the number of days in a month. None

of the actual convictions were confirmed

to be based on identity theft; which the

voter id bill was supposed to fix.

The other bills addressing election

"problems" included fixing absentee

voting, assisting absentee voting, entering

false information on a registration form,

various behaviors by election workers or

judges or being a non-citizen and voting.

The most ambitious bills included criminal

penalties or elevation of the violation

degree (misdemeanor to felony).

The most prolific filer happened to be in

the Rio Grande Valley representative who

decided that the Democratic Party was not

the place for his best interests. It almost

seemed as if he was trying to out-

conservative the long time Republicans.

The thing about his bills, some of which

passed the House floor, is that evidence

from state agencies confirmed that a problem did not exist. The Legislative

Budget Board released a criminal impact

statement on one bill, which is descriptive

of most of the other bills, that stated

"less than five individuals were

arrested, and less than five were placed

under misdemeanor community

supervision for providing false

information on an application for an earlyvoting ballot. For this analysis, it is

assumed the number of offenders

convicted under this statute would not

result in a significant impact

FIVE OFFENDERS? Is that evidence

of widespread fraud?

There are a couple of ways of

interpreting the proliferations of election

bills filed. One is that there is evidence of

problems. Since the elections were so

tilted to the right, one might question

whether the conservatives were legally

voted into office.

The other thought is not so easy to

dismiss. Some may consider the effect of

these bills is intended to send a message

that ultimately causes voter intimidation.Some honest voters, election workers and

poll judges may be intimidated by the slew

of attempted law changes. That is a

dangerous outcome to an effort to solve

problems that, based on evidence, do not

exist.

Election legislation focuses on non-existent problems

Chente Quintanilla

State Representative

Guest Perspective


7/16

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The Lending CrisisThe Decline of AD&C Lending

The nations home builders know that lending

for acquisition, development and construction

(AD&C) purposes is restrictive. Even in areas

of the country where home prices are stable or

growing and demand exists for new

construction, the lending environment is

challenging, which constrains residential

constructions traditional role of leading the

economy out of recession.

Lending for residential construction

purposes is significantly more restrictive than

loans for commercial construction activities,

and these facts are at odds with reporting from

certain surveys of financial conditions. Data

from the FDICs Statistics of Banking, graphed

below, confirm the anecdotal evidence from

builders of tight AD&C lending conditions.

Since the first quarter of 2008 peak of

AD&C lending for residential construction (1

to 4 unit properties), the total volume of loans

is down from $203.8 billion to $56 billion a

decline of $147.8 billion or 73%. Since early

2008, the stock of home building AD&C loans

held by FDIC-insured institutions has declined

on average 10 to 11% every quarter, with the

decline equal to 10.9% for the first quarter of2011.

All other construction and development

loans, including commercial and 5+ unit

residential properties, are down 45% since the

peak in the third quarter of 2008. This decline,

while large, is still considerably smaller than

the decline for residential AD&C loans.

It is worth noting that some sources, such as

the Federal Reserve Senior Officer Loan

Survey, suggest that business lending

conditions are improving for real estate loans.

The following chart graphs the Fed survey

results for reporting of net tightening for

commercial real estate loans. The most recent

survey indicates a greater percentage

of respondents reporting net loosening of credit

availability for the first time since the Great

Recession began.

However, NAHB survey data of home

builders and the FDIC data reported above

continue to indicate that AD&C lending

conditions remain restrictive for home building

nationwide.

Impeding Availability of FHA Financing

Would Be a Setback for Home Buyers,

NAHB Tells Congress

At a time when qualified home buyers are

experiencing difficulty in obtaining mortgages

because of overly restrictive underwriting

requirements, the federal government needs to

ensure that a reliable and adequate flow of

housing credit is available through the Federal

Housing Administration (FHA), according to

the National Association of Home Builders

(NAHB).

"If we look to the dramatic increase of FHA's

market share over the past few years, we can

see how essential the program is for our

nation's economic recovery," NAHB First Vice

Chairman Barry Rutenberg, a home builder

from Gainesville, Fla., told the House Financial

Services Subcommittee on Insurance, Housingand Community Opportunity.

In 2006, when private lenders boasted a

healthy market presence, FHA's market share

was at an all-time low of 2 percent. During the

past two years, with the private mortgage

market vanishing in a bad economy, FHA

insured nearly 30 percent of the single-family

mortgage market.

"This striking shift is evidence that FHA is

performing its mission of providing the federal

backstop to ensure that every qualified

American home buyer has access to a stable

mortgage product," said Rutenberg.

As Congress looks for ways to reform the

FHA, he urged lawmakers to proceed carefully

in order to avoid consequences that could harm

home borrowers. For example, NAHB is

concerned that increasing the downpayment

from 3.5 percent to 5 percent -- as called for in

a draft legislative proposal -- would create a

substantial burden for all American home

buyers, particularly younger buyers and those

with strong credit profiles who lack the

necessary funds to make the higher

downpayment.

"Research has shown that requiring a higher

downpayment does little to reduce risk of

default but causes home buyers to use more of

their reserves for the downpayment," said

Rutenberg. "Sound underwriting is the key to

minimizing foreclosures and defaults, not

higher downpayments. This is demonstrated by

current FHA foreclosure reports on loans made

to borrowers with sound credit profiles, which

have significantly improved."

Absent congressional action, the current

limits for FHA insured loans and Fannie Mae

and Freddie Mac mortgages are scheduled to be

reduced on Oct. 1. Meanwhile, the same

legislative blueprint that would increase FHA

downpayment requirements would impose

additional reductions in loan limits for a

significant number of areas throughout thecountry, a development that Rutenberg warned

could leave a large number of first-time home

buyers without a key source of mortgage

financing.

"Counties across the country would see their

loan limit reduced by tens of thousands of

dollars, placing further downward pressure on

home prices and impairing the ability of

borrowers to use FHA-insured mortgages to

purchase new homes," said Rutenberg.

To keep FHA, Fannie Mae and Freddie Mac

loan limits at their current levels, NAHB called

on Congress to support H.R. 1754, the

Preserving Equal Access to Mortgage Finance

Programs Act, a bipartisan measure sponsored

by Reps. Gary Miller (R-Calif.) and Brad

Sherman (D-Calif.).

Meanwhile, the draft legislative proposal,

which has not yet been formally introduced,

would remove the limit on the annual mortgage

insurance premiums on single-family home

loans, even though the agency has already

implemented a three-step premium increase

and the strong performance of recent loans

made under revised underwriting criteria makes

a compelling case that a further acceleration of

program premiums is not warranted.

"FHA's capital resources are stabilizing and

recovering. Allowing further, unlimited

increases in the insurance premiums now

would put unnecessary additional financial

strains on potential home buyers," said

Rutenberg.

The legislative plan would also transfer rural

housing programs within the Rural Housing

Service (RHS) from the Department of

Agriculture to the Department of Housing and

Urban Development. NAHB opposes this

proposed move because the RHS programs are

uniquely structured to address the housing

credit needs of low- and moderate-income

persons in rural areas, which are very differentfrom those found in urban and suburban areas.

"If the RHS single-family and multifamily

programs were consolidated into existing HUD

programs, it would make it more expensive for

persons living in rural areas to obtain an

affordable mortgage to purchase a home and

more difficult to finance small properties in

rural areas because HUD does not have a

program that meets this need effectively," said

Rutenberg.

"As Congress looks to improve the FHA and

RHS, these programs cannot be separated from

the larger discussion of reforming the complex

housing finance system, including future

reforms to Fannie Mae and Freddie Mac," he

added.
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8/16

EPAB ON THE SCENE

JUNE 2011

EPT LAND

Smart Growth

Groundbreaking

Richard Aguilar and his partners looked

on with pride as their newest Westside

development was unveiled. The public

event was the office ground breaking for

Montecillo, a Smart Growth plan involving

high density design with upscale urban set-

tings. The property is located off of Mesa

Street between Executive Boulevard and

the old Jaxsons restaurant. The execution of

the plan required the removal of a mountain

on the west side of Mesa that took several

months to complete. Primary engineering

was done by Conde Engineering while CF

Jordan is the projects primary contractor.

The event drew a large crowd to the view-ing area as wind played havoc with the tent

and presentation. David Bogas acted as

master of ceremonies while three city coun-

cil representatives along with the director of

planning also spoke. The first phase

includes four multistory units with town-

houses on the second floors up on three of

the buildings while the first floor is dedicat-

ed to retail stores. The ongoing project will

continue for several years as the large devel-

opment grows.

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9/16


10/16

News from the

Texas

Real Estate

Center

recenter.tamu.edu

Builders Outlook10JUNE 2011

Texas is main

gate for Mexico

freightTexas leads the nation in freight

with Mexico and has for at least 15years. Even during the height of therecession, when freight trafficdipped overall, Texas still rankedfirst.

In August 2010, Texas becamethe first state to record more than$10 billion in surface trade withMexico in one month. Texas alsowas the first state with more than$100 billion in surface trade withMexico in a single year.

In all, Texas-Mexico surface tradeaccounted for $114.5 billion worth ofgoods, up 33 percent from $86billion in 2009, according to the U.S.Bureau of Transportation Statistics.California was a distant second in2010 with Mexico surface trade at$47.6 billion.

Of the top U.S. ports, Laredoranks No. 1 in North American tradevolumes in all modes, including shipand air, crossing 13.2 percent in2010, according to the U.S.Transportation Department.

Six Texas ports rank among thetop 17 U.S. ports for North Americantrade. After Laredo, they are El Paso(No. 5), Hidalgo (No. 7), Houston(No. 10), Eagle Pass (No. 12) andBrownsville (No. 17).

Texas GDP up 3.7

percent in 2011Texas gross domestic product is

expected to grow by 3.7 percent in2011, propelled by the states top jobcreation and higher energy prices,according to BBVA Compasssecond quarter economic outlookreport.

The states energy sector hasbenefited from technologicaladvances, including new drillingmethods, as well as output growth intimes of high oil prices.

Among the areas of expectedgrowth is the states industrial

concentration. Texas is home to22,803 manufacturing companiesthat collectively employ 1.16 millionworkers.

Meanwhile, Texas retail sales areup about 4 percent as of January.

Overall, the report gives the U.S.an outlook of 3 percent GDP growthin 2011, but cites that the labormarket will still lag behind thatgrowth, creating just 1.3 million new

jobs in the last 12 months.


11/16

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 JUNE 2011 11

Showroom:2131 Missouri

915 533 6045 fax 533 6096

Thomas R. Brown, Owner

APRIL 2011

1. Airway & Montana 10 collisions

2. Joe Battle & Montana 10 collisions

3. Montwood & Zaragoza 8 collisions

4. Mesa & Shadow Mtn/Sunland Pk 7 collisions

5. Artcraft & Upper Valley 6 collisions

6. Gateway E. & Lomaland 6 collisions

7. Gateway West & Yarbrough 6 collisions

8. Mesa & N. Desert 6 collisions

9. Doniphan & Sunland Park 5 collisions

10. Fred Wilson & Gateway N. 5 collisions

2011 YTD Top Collision Intersections:

1. Joe Battle & Montwood 45 collisions

2. Gateway West & Yarbrough 26 collisions

3. Airway & Montana 24 collisions

4. Alameda & Americas 20 collisions

5. Gateway West & George Dieter 20 collisions

6. Global Reach & Montana 20 collisions

7. Gateway West & Lee Trevino 20 collisions

8. Montwood & Zaragoza 20 collisions

9. Gateway East & Lee Trevino 19 collisions

10. Mesa & N. Desert 19 collisions

EL PASO, TEXAS The El Paso Police Department has identified the top collision intersection locations for April 2011 and YTD 2011. The top intersection collision

locations are as follows:

Drivers are always encouraged to observe all traffic laws and to use extra care upon approaching all intersections.

Police identify top collision intersections
http://www.swher.com/http://www.swher.com/


12/16

Builders Outlook12JUNE 2011

YouR

Plumbing SupplySource in El Paso

4300 Rosa St.El Paso, TX 79905(915) 532-3917 Fax: (915) 532-3919

I executive officersGg bwng, Pn

Tropicana Homes

d H, v Pn

Cardel Design Group

fnk ay, sy/t

Cisco Homes

s shng, a cn

Wholesale Supply

Ky snn, i P PnVision Consultants

ry a, e v Pn

El Paso Association of Builders

I couNcil/committeecHairsAffordable 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

Home Show Sam Shallenberger Remodelors Rudy Guel

Membership Drive Mike Santamaria

Finance Committee Kathy Carillo

Education Committee Frank Spencer

I advisorYtotHeboardJ. Crawford Kerr, Attorney, Firth, Johnson

& Martinez

I boardofdirectorsJohn 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,LLCLorraine 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

Itabstate directors

Doug Borrett, Karam Co., Life Director

Randy Bowling, Tropicana Homes

INatioNal directorsBobby Bowling IV.

Demetrio Jimenez

2010 b m o th Y

Mike Santamaria

Mountain Vista Builders

2010 P c aw

Randy Bowling

Tropicana Homes

2010 a o th Y

Javier Ruiz

Border Solar/Senercon

Jhn shzn aw

Lorraine Huit

Cardel Design Group

Hny l m

Brad Roe

Cliff Anthes

Wayne Grinnell

Chester Lovelady

Don Henderson

Anna Gil

P Pn

c s

ePab mn sn:

The El Paso Association of Builders is a federat-

ed 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 Builders 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


13/16

June 11

General meeting

Las Vegas, Nevada

June 23-25

TAB Board meetings

Houston, TX

June 28

Board meeting

12:00

TBD

July 13

Associates Council

meeting

TBD - EPAB

July 19

Bowl-a-thon

at Bowl El Paso

11144 Pelicano

NEW MEMBERS RENEWALS

SODA SPONSOR

Eyesite Surveillance, Inc.

Dean Olson

P. O. Box 13612

Chandler, AZ 85248

602-318-1712


UPCOMING EVENTS

Thanks to our

JUNE SODA

SPONSOR:

Pioneer Bank

CONDOLENCES

To Bruce Meyer on the loss of

his Mother

To John Cullers on the loss of

his dad Elmer

To the family of Hector Duenez

To the family of Jerry Levy

CONGRATULATIONS

To Javier and Maria Isabel Ruiz

and big brother Sebastian

On the birth of Carolina Isabel

Born May 28, 2011

Weighing 6 lbs. 1 oz.

Membership News

11395 James Watt, Suite A-11 79936

915-633-8002

AAA Glass

All PrecisionSheetmetal Works

Bock & Associates

Cemex

Cimarron MortgageCapital

Dempsey AppraisalService Inc.

DWS Building Supply

Emerald EarthLighting

Environmental andSafety Solutions

First National Bank

Fortune CustomHomes

Guel Construction

Home Builders

Insurance Services

Karam Company

McClintock Self

Storage

Morrison SupplyCompany

New Horizon Builders

One Source FederalCredit Union

Pat Montgomery, CPA

Pioneer Bank

Presidential Homes

Real Estate Weekly

Rudolph Chevrolet

6046 Surety Dr 915-778-5387www.elpasobuilders.com

Bowl-A-Thon!

Tuesday, July 19 at Bowl El Paso11144 Pelicano Registration

at Noon Bowling starts at 12:304 man teams

$25.00 per person includes lunch and shoesWe need raffle prizes (gift cards etc.)

Lane sponsors Call 778-5387 Today Daddy-O!


14/16

Associates Council

Viva Las Vegas! Just a few days left before

we go to Vegas for our General meeting and a

lot of fun. Ray has something special lined up

for us for the meeting and I am sure everyone

will enjoy seeing this as it is something you

dont see every day. If you are missing this

trip make sure to get ready for the one next

year. Wed like to make this an annual event

as a good way to get away from everyday

routine into the world of glamour and fun.

Thank you to all of you who are making the

trip. By the time you read this we should be on

the way home with great memories and

hopefully a bag full of money.

Dont forget the Bowl a- Thon coming up

on July 19th ! Vicki Marcusse promises great

time will be had by all. Besides it will be hot

outside and the refreshments will be cool

inside. I cant wait to see if I can break a

hundred. It will be held at Bowl El PASO

located between Lomaland and Lee Trevino at

11144 Pelicano. Register by calling Angie at

the EPAB office 778-5387.

Correction on the tailgate party: it will be

held Thursday, September 29th starting

around 4:00 pm.

UTEP is playing Houston so it should be a

great game . Remember we have a very special

caterer for this event not to mention very coldbeverages. The weather will be great for this

event, I promise. Our good friend Mack

Rhodes is the AD at Houston and he promises

that the Cougars will bring it on. All I can say

is that our own UTEP Miners will be ready and

anxious to do battle. Our tailgate is a great time

for all. So dont forget, mark the date on your

calendar.

I dont want to waste all my energy on this

column as I need to go practice my Blackjack.

See you on Vegas!!!!!!


Industry Reports

Sam Shallenberger

Western Wholesale

Supply

Land Use

BySal Masoud

I would like to take this opportunity to

express my disappointment with the lack of

participation on the part of our land use

members. I understand that the time we

contribute is voluntary and will take away

from your day to day activities. However, I

feel that Linda and I as chairs for this land use

council that we must continue to keep meeting

on regular basis in order to remain a unit that

can stand united against all the challenges we

face dealing with the changes the city is

imposing.

We have not been able to hold a meeting

since January due to lack of participation. I

thank our staff members at the El Paso

Association of Builders for their consistent

effort sending meeting notices requesting

RSVPs well ahead of the meeting time. We

were force to cancel meeting since wereceived no confirmations for meeting

attendance.

Our next meeting will be held on June 22,

2011. I hope that we can count on our

members to register for attending the meeting

so we can get back on track.

FEMA flood maps update:I would like to share with you the contents

of a press release issued courtesy of the City

of El Paso Engineering and Construction

Management Department. This press release

is good news for the El Paso community

which will allow builders and developers to

continue with their plans in the near future.

The additional time will also allow The

USIBWC to complete the levees project and

achieve full certification prior to the issuance

of new maps.

Press Release:June 2, 2011-The public is advised that

effective May 24, 2011, the Federal

Emergency Management Agency (FEMA) has

officially placed the preliminary flood

insurance rate map project for El Paso County

on hold until further notice.

This temporary hold is necessary to allow

FEMA the opportunity to revisit the modeling

approach that was used to analyze

communities that are impacted by levees thatare not accredited.

Since the preliminary flood insurance rate

maps issued to the El Paso community on

June 18, 2010 may be impacted by this

modeling approach, the proposed maps will

NOT be finalized until a new approach is

completed by FEMA. A timeframe has not

been specified, however, FEMA officials have

indicated that they are working to create the

new modeling method as soon as possible.

During this timeframe, property owners can

continue to provide comments, or

protests/appeals (require scientific or

technical information) regarding the proposed

maps to the local floodplain administration

office.

To view the existing or proposed maps,

property owners can continue to visit the

Citys website www.elpasotexas.gov

under News & Notices, FEMA Flood

Zone Maps

Information may be submitted

electronically at

[email protected] or mailed to

the following address:

Floodplain Administration

2 Civic Center Plaza-4thEl Paso, Texas 79901

541-4200

Individuals who reside outside city limits

must contact their respective Floodplain

Administrator (El Paso County, 546-

2015).

REALTOR/Builder

10 Tips for Saving Water in theGarden

By: Laura Fisher Kaiser

1. Choose native plants

Native plants have had eons to adjust to the

areas normal rainfall, soil, and climate. Once

established, they require little or no watering.

2. Dont supersize plants

The bigger the plant, the more water it

might require. Before you buy research online

how tall and wide mature shrubs will grow.

Also, dont overcrowd plants: Follow label

planting instructions. Fewer plants require

less water. And flora that looks sparse at first

will fill the area in a few seasons.

3. Pile on the mulch

Mulching around plants is a great way to

reduce water loss and cuts down on water-

stealing weeds. Natural mulches include

compost, bark chips, and pine needles.

Organic mulches gradually break down and

add nutrients to the soil. Inorganic material,

such as landscaping paper, rocks, and pebbles,

are a more permanent option.

4. Make paths porous

Garden paths made of porous material

allow rainwater to seep into the ground and

nourish plant roots, not run off into the street.

Use gravel, pebbles, non-mortared concrete

pavers, or spaced bricks. To keep down

weeds, line the walk with landscaping paper

(or even newspaper) before you pile on theporous material.

5. Lose the lawn

A green lawn is a suburban ideal that drinks

more than 20,000 gallons of water each year.

You can keep those cool blades under your feet

and save water by planting drought-resistant

varieties. (Like: Bermuda and buffalo grass)

Mow less often; and when you do, raise the

height of your mower blade to 3 inches.

6. Put thirsty plants together

To save water, group plants into watering

zones. Place the thirstiest plants near the

house where they can drink roof runoff.

Farther out, make a transition zone for

plants that need supplemental drip irrigation.

Farther still is a natural zone for native

plants that can survive on rainfall alone.

7. Plant and water when it's cool

New plants and transplants need far less

water if you put them in the ground in early

fall or early spring when its cooler. By

summer, theyll have established a deep,

healthy root system that needs less watering.

Water in the cool of the morning; where youll

lose less water to evaporation than in the heat

of the day. Resist watering at dusk; wetfoliage during the night encourages fungus

and mildew growth.

8. Do donuts

Trees and shrubs need extra water during

their first couple of years to help roots take

hold. An efficient way to keep roots moist is

to mound several inches of soil into a donut-

shaped berm. Make the berm the width of the

tree--including branches. Use a hose or bucket

to fill the donut dam to the top.

9. Follow the sun

Before you plant, get to know how--and

how long--the sun shines in your garden.

Determine patterns of shade and sun. Use dry-

soil plants in sunny areas, and use plants that

require more water in shady areas where

evaporation is slower.

10. Create the illusion of water

A good way to conserve water in the garden

is to capture rain water from your roof in a

rain barrel. During a moderate rainfall, a 25-

by-40-foot roof can shed 600 gallons per hour.

All youll need is a capture system (roof

gutters and downspouts), a storage system

(large-capacity barrels) and delivery system

(garden hose).

June Meeting: 6/10/11 from 12-2PM at the

Greater El Paso Association of

REALTORS.

Speaker will be Bella Homes. Their

Education Topic will be New City Building

Code Changes.

Angela Ochoa

GEPAR

Sal Masoud

Linda Troncoso
http://www.elpasotexas.gov/mailto:[email protected]:[email protected]://www.elpasotexas.gov/


15/16

Balance sheet

and income

statement class at

EPABFrank Spencer of Aztec Construction

brought in his bookkeeper Kathryn

Schobner to give an overview on the basics

of financials and statements. The class

focused on why Understanding Your

Balance Sheet and Income Statement.

In the construction and contracting fields,

businesses are routinely asked to provide

financial statements to lenders, bonding and

insurance agents, tax reporting

agencies...and the list goes on. While the

Balance Sheet and Income Statement are

required for official purposes, they can also

be used on a regular basis by owners and

managers as an up-to-date snapshot offinancial standing.

This workshop was designed for non-

accounting people who want a basic

understanding of how to read a Balance

Sheet and Income Statement. They

examined how these statements are

produced and the importance of

maintaining accurate and timely records.

After this workshop, business owners and

managers should be able to properly

interpret and generally understand the

overall strength of their company's financial

position by looking at the Balance Sheet

and Income Statement.

EPAB ON THE SCENE

Introducing the all-new

Builder Book

Available in newsstandsandonlineJuly1

Comlt listings of vry epab mmr

Hndy nd sy to us for consumrs

Informtiv rticls

Cll 778-5387 to rsrv your coy tody!


16/16

builder outlook 0611

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