Builders outlook 2013 09

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Builders

utlook

2013 issue 9

EPAB to host Fall Home & Garden Show The smell of paint and the busy workers setting up will be the scene the week of October 11 as the return of a Fall Home and Garden Show takes center stage at the Judson F. Williams Convention Center.

Produced by Show Technology of San Antonio, this year’s El Paso show will feature 100 exhibitors and showcase some of El Paso’s premier businesses. The three day show is designed to offer consumers an opportunity to spruce up their homes for the holidays and beyond.

“We’re so glad to be coming to El Paso especially right before Thanksgiving and Christmas,” said Tommy Mantini of Show Technology.

“Our years of producing home and garden shows will be apparent to both the consumer as well as the vendors exhibiting at the show,” he continued.

Show Technology purchased the previous rights from another producer who had the dates locked up. “We wanted to ensure that if we came into El Paso that we would be in good shape in the spring and fall, so we bought out the show and secured the dates we needed,” Mantini said.

Ray Adauto, Executive Vice President of the El Paso Association of Builders said that the association was approached by the producers with the idea of sponsoring the Home and Garden Show. “We have been involved in Home shows for decades and have been associated with some great and not so great producers. In this case we are excited and pleased that the Mantini family has taken over the local show,” Adauto said. “Our fellow associations across Texas have been working with Show Technology for years and now we are as well.”

The idea to showcase your business is nothing new to some of our members, like Tropicana Homes. “We have been successful in previous shows because we treat the show as an opportunity,” said Greg Bowling. “We basically add a model home into show and welcome consumers to it,” he continued.

Tropicana has a great track record in getting customers out of visitors who never expected to be able to buy a

Friday, October 11, 2:00 p.m. - 7:00 p.m.

Saturday, October 12, 10:00 a.m.-7:00 p.m.

Sunday, October 13, 11:00 a.m. - 5:00 p.m.

To reserve a booth or space call Show Technology Productions at -1-866-663-6186. Log in to www.elpasohomeandgarden.com for more information.

home at the show. “When they come in they might be looking to fix up their place, but we can show them how buying new makes sense,” Bowling said.

This show will show feature HVAC, solar, and building material vendors.

One feature that visitors will like is the Gardening experts from local universities extension services. In addition TV sensation Ahmed Hassan from DIY Network fame will be conducting seminars and answering questions from the visitors. “Ahmed was here two years ago and he was sensational,” said EPAB’s Adauto. “Not only is he the favorite of many he’s also really knowledgeable when it comes to turning your yard into your dream showcase,” Adauto continued.

The show will open Friday October 11 at 2 p.m. and go until 7, followed

by Saturday 10-7 and Sunday hours 11-5. To reserve a booth or space call Show Technology Productions at -1-866-663-6186.

Log in to www.elpasohomeandgarden.com for more information.

Accent Homes teams up to present home at Fall Home and Garden Show Edmundo Dena, President of Accent Homes and President of the El Paso Association of Builders announced that Accent has agreed to construct a show home inside the Judson F. Williams Convention Center for the Fall Home and Garden Show. This will be Accent Homes first venture into this type of display but Dena said he is looking forward to it.

“I think that Accent has such an awesome product line that we couldn’t find a reason not to do this,” Dena said to the Outlook. “We are pleased to be working with Show Technology Productions to make sure our display home is something show goers will appreciate,” he continued. “We try to display local builder talent at our events like this and we are extremely excited that Accent Homes has undertaken this endeavor,” said Tommy Mantini of Show Technology. “We have great builders do this around the country

and adding Accent Homes to our stable of talent will make this show something special,” he continued.

Dena said that he is working with his suppliers and vendors to show off their products and what it would look like inside an Accent Home.

The display will feature several rooms (or vignettes) that you would find in a real home. “Our vendors and suppliers will help us put the latest and greatest inside our show home and visitors will be told where to find those,” Dena continued.

Western Wholesale Supply will be a part of the Accent Home display.

“When we were asked by Accent Homes to participate we jumped at the opportunity,” said Sam Shallenberger. “We supply the real thing to Accent Homes and so moving into the convention center is something we look forward to doing,” he continued.

You can check out the show home October 11-13 at the Fall Home and Garden Show.

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Builders Outlook

2013 issue 9

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2013 issue 9

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Builders Outlook

President’s Message | Edmundo Dena

El Paso Disposal

President, El Paso Association of Builders

The kids are back in school. Homework for them, homework of another kind for me. As the month started we were busy at Accent Homes, and hopefully you have been also. It’s not that I mind being busy because I can remember (as you can also) the days when we were wondering if we’d sell a home or not. So I’m not complaining but I am telling you that in today’s business world there’s so much more to business than what I ever imagined. We are starting to see some of the effects the new health care act already and we’re seeing some of the effects from an economy not ready to really get going. While we work our way through those two things we’ve had new increases in permit fees and new regulations. So once again I wonder how we’ll cope and then find out we’ll do just fine. I think that many of you successfully maneuver the world of business just like me, optimistically.

September is relatively quiet but the coming months will feature some of our big events again, including the Fall Home and Garden show in October, a Halloween themed bowling tournament on October 29 and then it’s on to November and all that it brings. So I’ll get back to working for a living and helping at the Association. I’ll also encourage you to consider your opportunity to serve the EPAB by getting involved in the Board and in all the events we have planned. Until then, go out and sell something.

772-7495

Showroom: 2131 Missouri 915 • 533 • 6045

fax • 533• 6096

Thomas R. Brown, Owner

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Builders Outlook

2013 issue 9

Perspective

Ray Adauto, Executive Vice President EPAB

Sometimes you can’t tell the seasons without looking at ESPN. Other times all you have to do is look at government. Tis the season for things to happen, good and bad. First the issues with how we are going to pay the increases of property taxes are just being realized. It will take a few more months before the reality sets in as property owners finally open the tax bill and decide that they should’ve paid better attention.

Higher taxes means less home sales, less sales means less work for builders and associates alike. It is the proverbial struggle of being able to afford what you want to buy or better yet buying a little above your means but still buying. Not today it seems.

Interests rates have gone up and while they’re still at or near historic lows. The national media and the NAHB say that home building is up and that’s true since it was so far down the tubes a while ago that any

Questioning the role of government movement in a positive direction is, well, positive. The caveat is that the economy is still fragile and with Congress not able to come to terms on the debt limit and health reform, food stamps or other “entitlements” the mood of the buyers’ market may be wait and see. What we have to fear is that the government doesn’t get funded. I don’t want to see the military get IOU’s while the Congress gets paid like usual. That spells trouble even in a Republic like ours.

Locally at some point the governments are going to have to quit spending on anything outside of the basic role of government: provide for the safety and welfare of the citizens.

I have long railed against wasteful spending by the bureaucrats and politicians. Last month I told you the story of the move to put expensive roundabouts on Van Buren and Monroe streets, and the overzealousness of city staff to do it

despite my objections to the costs. I have yet to hear from the District 2 office or anyone else within the city but I’m sure the editorial was read by some of them. I am hopeful that the plans to put the crop circles there are scrubbed. I also hope the paving is done that is sorely needed there as well as in many other parts of the city.

I also think that using the money to chop the weeds from the streets and rights of way would show the city is taking care of its properties just like they are forcing private citizens to do via citations or warnings.

It is important that the politicians who ran on the mantra of being more business friendly actually show that they are willing to clean their house before making others do it, or at least lead the way. A show like this would go a long way in turning a campaign slogan into an action.

Finally, speaking of the rains we just experienced I’d like to think we would

be better prepared for it with so much money spent on upgrades and work to create a new stormwater utility. To be fair some of it was better, but on the whole we didn’t get the same amount of rain we did in 2006, not even a 10th of that deluge. So why, we ask, did I10 flood and stop interstate traffic?

Lack of pumps? No way to get the water out?

Interestingly the stormwater utility brought in two giant pumps and dumped the water onto the roads next to the new ponding sites.

So the new went into the old. I ask this: why hasn’t the interstate been raised so that lanes are above the water level. By now the work would have been done and there would be no flooding. Just a thought to end my column. Makes you think, doesn’t it.

2013 issue 9

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Builders Outlook

Industry News Builder Confidence Unchanged in September From NAHB

Following four consecutive months of improvement, builder confidence in the market for newly built, single-family homes held unchanged in September with a reading of 58 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today.

“While builder confidence is holding at the highest level in nearly eight years, many are reporting some hesitancy on the part of buyers due to the sharp increase in interest rates,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “Home buyers are adjusting to the fact that, while mortgage rates are still quite favorable on a historic basis, the record lows are probably a thing of the past.”

“Following a solid run up in builder confidence over the past year, we are seeing a pause in the momentum as consumers wait to see where interest rates settle and as the headwinds of tight credit, shrinking supplies of lots for development and increasing labor costs continue,” noted NAHB Chief Economist David Crowe.

Derived from a monthly survey that NAHB has been conducting for 25 years, the

NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current singlefamily home sales and sales expectations in the next six months as “good,” “fair” or “poor.”

The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average,” or “low to very low.” Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

HMI component indexes were mixed in September. While the component gauging current sales conditions held unchanged at 62, the component gauging sales expectations in the next six months declined three points to 65 and the component gauging traffic of prospective buyers increased one point, to 47.

All four regions posted gains in their threemonth moving average HMI scores in September, including a two-point gain to 41 in the Northeast, a four-point gain to 64 in the Midwest, a two-point gain to 56 in the South and a four-point gain to 61 in the West, respectively.

Single-Family Production Pushes Housing Starts Up From NAHB

Led by a solid increase in single-family starts, nationwide housing production rose 0.9 percent to a seasonally adjusted annual rate of 891,000 units in August, according to figures released today by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Meanwhile, construction of multifamily buildings slowed following a rebound in the previous month.

“Overall, this is an encouraging report as builders are seeing pent-up demand begin to be released for single-family homes despite headwinds such as rising mortgage rates and tight credit conditions,” said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. “This is the kind of signal we’ve been looking for, with single-family starts and permits up or holding steady across every region in the nation,” said NAHB Chief Economist David Crowe. “Today’s report is reflective of gradual improvement in buyer confidence in the overall market and our recent surveys that indicate a solid outlook for single-family production. On the multifamily

side, we are catching up with underlying rental demand. We expect to see additional multifamily starts in the future, but not as rapid a pace of growth as we’ve seen in the past.”

Single-family housing starts rose 7 percent to a 628,000 unit pace. Regionally, singlefamily starts activity rose 9.6 percent in the Northeast, 7.1 percent in the Midwest, 2.3 percent in the South and 17.5 percent in the West.

The annualized rate of multifamily production fell 11.1 percent to a seasonally adjusted annual rate of 263,000 units.

Overall building permits, which are an indicator of future building activity, declined 3.8 percent to 918,000 units in August. This was due entirely to a pullback in the multifamily sector, where permits fell 15.7 percent to 291,000 units. Single-family permits posted a 3 percent gain to 627,000 units – the best pace since May of 2008.

Regionally, single-family permit issuance increased 2.9 percent in the Midwest, 2.5 percent in the South, 5.3 percent in the West and held steady in the Northeast.

Record High 291 Housing Markets Listed As Improving From NAHB

A total of 291 metropolitan areas across the country now qualify as improving housing markets, according to the National Association of Home Builders/First American Improving Markets Index (IMI) for September, released today. This reflects a gain of 44 markets from August and marks the index’s highest level since it was initiated two years ago.

The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. In September, 242 housing markets retained their existing positions on the IMI while 49 new markets were added and five were dropped from the list. Recent additions include such geographically diverse locations as Macon, Ga.; St. Cloud, Minn.; Brownsville, Texas; Spokane, Wash.; and Milwaukee, Wis. “Just over 80 percent of the 361 metros tracked by our index are showing consistent growth in three key measures of housing market strength – prices, permits and employment,” explained NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “While there is still plenty of room for growth, this is an excellent indication of how the housing recovery has begun to take hold across more geographic areas.”

“The dramatic increase in markets qualifying for the IMI in September was partly due to a recent improvement in the way that Freddie Mac measures home prices, which resulted in stronger gains than previously reported,” noted NAHB Chief Economist David Crowe.

“Even so, the broadened list of metros on the IMI continues to demonstrate the slow but steady gains that individual housing markets are making to bolster the national outlook.”

“With every state now able to claim at least one county that’s part of an improving metro, and 23 states having charted at least one new entry in September alone, prospective home buyers have good reason to be encouraged by this news,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Co. The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health.

The index measures three sets of independent monthly data to get a mark on the top Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three measures for at least six consecutive months following those measures’ respective troughs before being included on the improving markets list.

A complete list of all 291 metros currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in September, is available at www.nahb.org/imi.

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2013 ISSUE 9

Builders

Builders Outlook

utlook on the scene |

Young Designers visit construction site The 2014 Young Designer contest has started with the new school year and while it’s just gotten under way the students are anxious to get going. Association Secretary Treasurer Edgar Montiel of Palo Verde Homes hosted the high school seniors to learn about construction from the ground up.

Students are enrolled in the El Paso Independent School District Center for Career and Technology Education (CCTE) taught by Cecilia Orozco. John Chaney from Passage Supply is the chairman of the YD events.

The students represent several high schools in the district including Jefferson, Bowie, Andress, Austin, Irvin, El Paso, Franklin and Coronado. Students attend their respective home high schools and then head out to the CCTE campus at the old El Paso Tech. “We have a lot of kids that have done very well with our program and we’re grateful for all the help the Builders Association has provided,” said Ms. Orozco. “For our part getting the students out to an actual worksite is important, and having Edgar Montiel host them is really cool,” said John Chaney.

Montiel gave the students a lot of information that they quickly devoured and took plenty of notes on. “It is really good to see that these students want to get into the construction business, as draftsmen, architects, builders, or

in specialty sub-contracting businesses,” Montiel told the Outlook.

“We know that the demand for qualified professionals in our industry is important, so working with the students and the district is vital to continue our growth,” he continued.

While touring the worksite at Cimarron the students were also greeted by EPAB President Edmundo Dena. “Watching the note taking and the interest in what is going on inside and outside the homes showed me that these students really want to learn,” Dena said.

The annual Young Designer Scholarship Contest utilizes a problem solving methodology whereby the student is given a situational problem, asked to design to it, and complete a set of plans and an elevation showing the results of the problem solving.

“We have seen so many different approaches to the same problem over the years that frankly we look forward to seeing the plans and models these students create,” said Ray Adauto.

Our special thanks go out to Ceci Orozco, John Chaney, Edgar Montiel, Edmundo Dena, Ray Adauto, Palo Verde Homes, Edwards Homes, and Accent Homes for this special trip. Another outing is planned for the juniors participating in the CCTE.

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el paso development news The North Hills Crossing shopping center may bring several new retailers to Northeast El Paso. Tenants are oftentimes used for illustrative purposes by developers and subject to change.

Northeast El Paso to get more retail options North Hills Crossing May Bring New Stores Residents of Northeast El Paso may have several more retailers and restaurants to choose from in the coming years as the North Hills Crossing shopping center takes shape. The 28 acre center will be located at the corner of Martin Luther King Jr. Boulevard and US54.

The 200,000+ square foot power center has two site plans at the website of RJL Real Estate consultants (www.rjlrealestate.com), one that is part of the website and another shown on the marketing brochure. Each site plan differs but shows a mix of big box and medium sized retailers as well as restaurant options.

Both plans include retailers such as Ross, Marshall’s, Michael’s, Rack Room Shoes, Office Depot, and restaurant Taco Cabana.

Restaurants and smaller retail shops will be located on “outparcels” along the frontage road and Martin Luther King Jr. Boulevard.

The brochure’s site plan shows a Walmart Market grocery store as well as smaller PetSmart, Dollar Tree, and Anna’s Linens locations in the big box area. The outparcels include Panda Express, Whataburger, Chick-Fil-A, Five Guys Burgers & Fries, Verizon, and Dunkin’ Donuts locations.

The site plan according to the

website is somewhat different showing retailers and restaurants such as JCPenney, Taco Cabana, Peter Piper Pizza, AutoZone, and Chase Bank. There are also spots for a future grocery store, pet store, sit down restaurant, and drive-thru restaurant.

North Hills Crossing, located to the south of Bungalows at North Hills apartment complex, is being developed by Southwest Land Development Services, according to the marketing brochure. No construction or opening dates are available for the project, and retailers included in the site plans may also be tentative.

The lobby of the CONRAC structure will be three levels high. (Rendering courtesy City of El Paso)

Restaurants Expand Further East in El Paso

Site plan showing a restaurant row at the corner of Edgmere Boulevard and Joe Battle. (Image: www.rjlrealestate.com)

A 16 acre shopping center in far east El Paso is creating a restaurant row of sorts at the northeast corner of Joe Battle Boulevard and Edgemere Boulevard.

Three restaurants will join McDonald’s and Taco Tote locations already at the site.

Applebee’s, Village Inn, and Starbucks Coffee will all have a presence at the shopping center, according to a marketing brochure at the website of RJL Real Estate Consultants (www.rjlrealestate.com). The brochure highlights other available spaces at the center, including a restaurant space and a bank building.

The newest restaurants will line Joe Battle Boulevard in the typical strip center fashion that El Pasoans are accustomed to experiencing. The 16.9 acre center is across Edgemere Boulevard from the Sierra Providence East Medical Center complex which is also undergoing expansion.

As usual, potential tenants in developing shopping centers are subject to change, and this may not be the finalized list of restaurants to be located at the site.

Builders Outlook Issue 9.2013

Content provided by El Paso Development News visit: elpasodevnews.com

The Consolidated Rental Car Facility at the El Paso airport will have a three level parking structure. A covered pathway will take travelers to and from the baggage claim area.

(Rendering courtesy of City of El Paso)

City Debuts Renderings of Airport Rental Structure New renderings provided by the City show what the future rental garage will look like at the El Paso International Airport. The structure, officially called the El Paso Consolidated Rental Car Facility, or CONRAC for short, will also include a City-commissioned piece of public art that will hang in the lobby.

The CONRAC structure will be a three level parking structure at the airport which will be used by rental

car companies for pick up and return of automobiles used by travelers. It will include 650-700 parking stalls and was designed using smart growth principles, including a focus on pedestrian accessibility.

Included in the structure will be Ready and Return areas, customer kiosks, fueling and car wash areas, a light maintenance facility, and vehicle storage for use by the rental companies. The architectural design is by

Demattei Wong Architecture, Inc. of California under a contract approved by the City last October.

Inside the three-level tall lobby of the CONRAC will hang a public art piece that will float above travelers’ heads. A three-dimensional “Mandala” will incorporate iconography from El Paso’s mix of cultures using multiple colors to suggest a sunset, according to the website for the co-designer, MetaLab Studio of

Yucca Park Improvements

UTEP Update: Schuster Roundabout Completed, Transformation’ Work Continues

(www.onthemove.utep.edu)

A new roundabout at the University of Texas at El Paso (UTEP) opened to traffic in time for the first day of classes last Monday. The roundabout is part of the larger Schuster extension project that will take the avenue over Interstate 10 and connect to West Paisano Drive.

According to the school’s On the Move website (www.onthemove.utep.edu), a portion of the P-4 parking lot has been restriped and opened for use.

Houston (metalabstudio.com).

MetaLab designed the piece in collaboration with RE:site Studio.

Construction should begin within a year on the $45 million CONRAC project, according to the Department of Aviation’s Capital Improvement Plan revealed last month. The structure will be located immediately to the west of the baggage claim area of the airport terminal.

This bird’s eye view of Wiggins Plaza shows the elliptical “labyrinth” located between the University Library and the Health Sciences building. The plaza includes traffic calming measures for vehicles.

Pedestrians can also now walk underneath the completed roundabout to access the campus.

The new road is officially titled Spur 1966 in reference to the national champion Texas Western basketball team, the college that would be renamed UTEP years later. It is still the only university in the state of Texas to win a national championship in basketball.

A 0.7 mile bridge will allow a new interchange between Schuster

Avenue and the future Border Highway West. The Yandell Drive bridge will be demolished as part of this project. Haydon Building Corp. (haydonbc.com) of Phoenix is the contractor on the $55 million project.

Inside the core of UTEP, the much heralded “Campus Transformation” continues to take shape. The Wiggins Plaza project is nearing completion as crews put the finishing touches on the landscaping of the area. New shade trees, seating areas, and an elliptical “labyrinth” have taken up an area between the Library and Health Sciences buildings.

University of Texas System Board of Regents recently approved $10 million to continue the Transformation projects, including Centennial Plaza in the middle of campus. The area, formerly occupied by grassy hills, parking lots, and streets, is currently a pile of dirt.

Transformation projects are timed to coincide with next year’s Centennial Celebration and aim to remove vehicular traffic from the inner parts of campus.

The City of El Paso held a community meeting last week to inform residents of scheduled improvements to Yucca Park. A 1.65 acre expansion will add recreation area on the northern side of the park.

Improvements to the park include new sod, trees, and landscaping as well as a dedicated 2,000 square foot chess-playing area that will be sheltered by a metal canopy. This area will include four game tables with a chess board insert; each will have three attached seats and an empty spot for wheelchair access.

A large, 144 square foot red and black chess board will be located on the floor in the middle of the area.

The park expansion will also add four new 16’ by 16’ picnic units with shade structures, multiple concrete paths, benches, scores of new trees, and runoff controls. Yucca Park is currently at 16 acres in size and is located at the corner of Yarbrough Drive and Yermoland Drive just south of Bel Air High School.

City Council awarded the construction contract to Globe Builders of El Paso in July. Construction should begin this month with the completion expected by February of 2014.

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Builders Outlook

Expert Advice

Joe Bernal Employee Benefits of El Paso

401(k) Basics Most (85 percent) of employers with ten or more full-time workers find defined contribution (DC) retirement plans, such as 401(k)s, valuable in helping to retain, recruit and motivate employees. And a surprising 72 percent of similarly sized employers that do not offer a DC plan agree.* To find out why, read on.

Advantages for Employees A 401(k) plan allows employees to contribute to an individual retirement savings account set up on their behalf by the employer. Employees enjoy the following advantages: • They can make salary deferral contributions to traditional 401(k)s, reducing current taxable income.

• They do not have to include employer contributions in their taxable income until they withdraw the funds. (Subject to certain limitations.)

• They can direct their funds into various investment vehicles, if their plan allows, according to their appetite for risk and other factors.

• Their funds will grow tax-free until they are distributed.

• They can easily see their retirement balances at any time, unlike traditional pensions, which require complicated actuarial calculations.

• They own their accounts; they can take all vested funds with them if they leave your employ.

A 401(k) plan offers the following advantages to employers: • Employers can use a well-designed plan to help attract and keep talented employees.

• Employee salary deferral contributions reduce employers’ payroll tax liability.

• Employers can deduct their administration expenses and any contributions they make to employees’ accounts as business expenses.

• Employers limit their liability to a defined contribution, unlike with traditional pension plans.

To set up a 401(k) plan, employers must adopt a written document that serves as the foundation for day-to-day plan operations. If you have hired someone to help with your plan, that person likely will provide the document.

Once you have decided on a 401(k) plan, you will need to choose the type plan that is best for you—a traditional 401(k) plan, a safe harbor 401(k) plan, or SIMPLE 401(k) plan.

Traditional 401(k) Plans A traditional 401(k) plan allows eligible employees to make pre-tax elective deferrals through payroll deductions.

Employers can make contributions on behalf of all participants, make matching contributions based on employees’ elective deferrals, or both. In traditional 401(k) plans, you can design your plan so that employer contributions vest over

time, according to a schedule.

Employees forfeit unvested funds when they leave your employment. (Employee contributions are always 100 percent vested, or owned, by the employee.)

Traditional 401(k) plans cannot discriminate in favor of highly compensated employees. This means average deferred wages and employer matching contributions for highly compensated employees cannot greatly exceed average deferrals and matches for non-highly compensated employees.

To ensure that the plan satisfies these requirements, the employer must perform annual tests, known as the Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) tests.

Safe harbor 401(k) Plans A safe harbor 401(k) plan lets employers avoid the nondiscrimination tests that apply to traditional 401(k) plans. It resembles a traditional 401(k) plan, but, among other things, requires employer contributions that are fully vested when made. Employers can make matching contributions limited to employees who defer, or contributions on behalf of all eligible employees,

2013 issue 9

regardless of whether they make elective deferrals.

Employers sponsoring safe harbor 401(k) plans must satisfy certain notice requirements. Each eligible employee for the plan year must receive written notice of his/her rights and obligations under the plan. The notice must describe the safe harbor method in use and how eligible employees make elections, and other pertinent information.

Employers of any size can use a traditional or safe harbor plan; they can also combine these plans with other retirement plans.

SIMPLE 401(k) Plans The SIMPLE 401(k) plan gives small businesses a simple, cost-efficient way to offer retirement benefits to their employees. It exempts plan sponsors from the annual nondiscrimination tests that apply to traditional 401(k) plans. As with a safe harbor 401(k) plan, the employer must make employer contributions that are fully vested.

To be eligible for a SIMPLE 401(k), an employer must have 100 or fewer employees who received at least $5,000 in compensation from the employer for the preceding calendar year and no other

employee retirement plan.

Roth Contributions Employers with a traditional, safe harbor or SIMPLE 401(k) plan can allow employees to make Roth contributions, if plan documents permit. With Roth contributions, employees designate some or all of their contributions as Roth contributions and make them with aftertax dollars. This lets them avoid taxation on these funds when withdrawn after retirement, subject to certain conditions.

IRS code limits the total amount contributed to all 401(k) accounts from both employers and employees, including Roth contributions, for any one year. For 2013, contributions cannot exceed $17,500, plus an additional $5,500 in catch-up contributions for participants age 50 or older by year-end.

Limits typically increase every year to reflect cost of living adjustments.

Over time, a 401(k) fund can grow into a tidy nest egg and help you retain valuable employees.

For more information on setting up a 401(k) plan, please contact us. *Source: American Benefits Institute, “Attitudes of Employee Benefits Decision Makers Toward Retirement Plan Tax Proposals,” December 11, 2012

Proud Pr ouud to be b part part of your your financial team!

Cheecking Accounts Checking Accou unts team!

Savings Savi ings Account &HUWLÀFDWHV RI 'HSRVLW &HU WLÀ ÀFDWHV RI 'HS SRVLW Mortgage Mor tga age Loans Auto Auto Loans Lo oans Credit Card Ca ard Credit Business Accounts Accounts Business 24 24-Hour 4-Hour Account A Access Connvenient ATMs ATMs Convenient Online Billll PPay Onlin ne Banking & Bi ay TText ext 2 Bank Mobilee Banking

FFor or over overr 1110 10 yyears, ears, w we’ve e’’ve pr provided roovided solid financial servicess ttoo our communities.. Come ttoo Pione er B ank Pioneer Bank ttoday oda ay and disco verr the thhe dif ferrence a discover difference local b anking team team can an mak e! banking make!

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PIONEER P PION NEER BANK BAN NK www.pioneerbnk.com www w.pioneerb bnk.com 66068 Gateway Eas East st 2 2290 Trawood Dri ive Drive Street 7 7015 North Mesa S

(915) (915 5) 782-2400 782-24000

2013 issue 9

11

Builders Outlook

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Give your customers the ‘option of the sun’ Now more than ever, El Paso home buyers are planning for the future.

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it’s time to get serious about your retirement.

The El Paso Association of Builders is proud to now offer an individualized retirement plan created for you.

ThE EPAB MEMBEr rETirEMEnT PlAn As an EPAB member, you have the unique opportunity to take control of your retirement investing.

We understand the challenges of retirement planning. That’s why we have partnered with Employee Benefits of El Paso to offer you the opportunity to create an individualized retirement plan under the umbrella of the El Paso Association of Builders. • investments • irA’s • 401K now is the time to start planning for the next phase of your life. let your membership with EPAB help you get there.

Call (915) 542-0900 for more information today.

Prior to selecting investment options for your plan you should consider the investment objectives, risks, fees and expenses carefully. For this and other important information, you obtain prospectuses for mutual funds, any applicable annuity contract and the annuity's underlying funds, and/or additional disclosure documents from the appropriate retirement plan representative. Read them carefully.There is no guarantee that participation in any retirement plan will result in a profit or that your account will outperform a self-managed portfolio. Please consult with your financial planner, attorney and/or tax adviser as needed.

12

Builders Outlook

Homebuilders Show Housing Recovery Hasn't Crumbled Yet Reach Abram Brown \forbes.com.

The foundation for the housing recovery hasn’t been shaken by the threat of rising rates.

The proof? That two of the nation’s largest homebuilders put up betterthan-expected quarterly figures in a period when economists worried interest-rate concerns would sap the housing recovery’s strength.

Firstly, Lennar the largest U.S. homebuilder by market cap, says its profit rose to $120.7 million, 54 cents a share, from $87.1 million, 40 cents a share, a year earlier. Analysts predicted Lennar would earn 45 cents a share. Meanwhile, revenue jumped 45% to $1.6 billion, matching Wall Street predictions.

And KB Home, one of the smaller homebuilders concentrated mostly on the West Coast, reported a surge in profit: $27.3 million, 30 cents a share, from $3.3 million, 4 cents a share. It too beat Wall Street’s estimates, which called for 22 cents a share in earnings. Revenue shot up 29% to $549 million.

KB Home CEO Jeffrey Mezger described the housing recovery’s fundamentals as “firmly in place, supported by low inventory levels, an improving economy and positive

demographic trends.” Even if mortgage costs do rise, Mezger says, the result would only be temporary.

Similarly, Lennar CEO Stuart Miller admitted his company might see “bumps along the road that may impact the short-term pace of the recovery,” but he sees a long-term outlook that “remains extremely bright.”

Another welcome sign was the increase in home prices reported by the two homebuilders. KB Home said overall selling price rose 22% to $299,100, and it delivered 6% more homes. At Lennar, selling price rose 33% to $291,000, and homes delivered increased 37%.

In addition to KB Home and Lennar, other major U.S. homebuilders include D.R. Horton, the second largest by market cap, NVR Inc., and Standard Pacific.

The increase in housing prices and sales–strong signals that the recovery continues apace–was also reflected this morning in new economic data.

According to the S&P/Case-Shiller composite index, home sales increased 0.6% in July, and prices rose 12.4%. The Case-Shiller surveys housing results in 20 metropolitan areas.

2013 issue 9

ry edition h anniversa Special 65t

Reserve your advertising space in the 2013 edition of DREAM HOME

!

The El Paso Association of Builders exclusive magazine featuring the absolute very best in custom home building and luxury living.

Call Margaret today at 778-5387 E L PO CAISA OT I O N B

OF

BUILDERS

ASS

years

’S E L PA S O UILDING

FUTURE

m builders.co www.elpaso

46 S I N C E 19

ome Your New H eva

Su Casa Nu e e best tim NOW is th new to buy your so!

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el Ahora es ra tiempo pa comprar eva nu sa una ca ! en El Paso

Reserve your advertising space in the next edition of Your New Home/Su Casa Nueva The most complete home buying guide in both English & Spanish • Unmatched distribution and circulation • Unique dual language layout • Great advertising opportunity Call Margaret today at 778-5387

2013 Issue 9

13

Builders Outlook

www.elpasobuilders.com www.epbuilders.org

Membership News UPCOMING EVENTS | OCTOBER 10 11:00 BOARD MEETING 12:00 GENERAL MEETING EL PASO CLUB ChASE BANK BLDG.

OCTOBER 11, 12, 13 hOME & GARDEN ShOW EL PASO CONVENTION CENTER

OCTOBER 29 hALLOWEEN BOWLING EVENT 12:00 NOON BOWL EL PASO

NOVEMBER 13 EL PASO DESERT OPEN PAINTED DUNES 9:00 ShOTGUN

RENEWALS | BONDED BUILDERS hOME WARRANTY AMERICAN EAGLE BRICK CO. CASTILLO ELECTRIC DEMPSEY APPRAISAL SERVICE, INC. CULLERS & CALDWELL BUILDERS ACCENT hOMES MA hOMES BARRON SUPPLY CAPITAL BANK, SSB KWAL PAINT CO.

SOUThWEST DÉCOR EL PASO CORP. CUSTOM DREAM hOME BMC SELECT NEW hORIZON BUILDERS BARRAGAN & ASSOCIATES STEWART TITLE COMPANY STRUCSURE hOME WARRANTY SUN CITY WINNELSON ACME BRICK

NEW MEMBERS | EP MASS MEDIA ADVERTISING, INC. CONTACT: ORLANDO RODRIGUEZ 11385 JAMES WATT, STE. B-12 EL PASO, TX 79936 915-595-2492

SODA SPONSOR |

ChAPARRAL MATERIALS, INC. CONTACT: JEREMY TERCERO 1001 EASTSIDE EL PASO, TX 79905 505-771-7700

NOVA BUILT, LLC. CONTACT: YVONNE CAPOLDI 4800 N. STANTON #29 EL PASO, TX 79902 915-494-0468

Thanks to our SEPTEMBER SODA SPONSOR: ALON BRANDS

Jaime’s Courier Service,Inc. 915-549-4533 or 915-478-2404 11395 James Watt, Suite A-11 79936 915-633-8002

Bonded, insured for your peace of mind.

14

Builders Outlook

2013 issue 9

Associates Council

Sam Shallenberger Western Wholesale Supply

Hi everyone, just want to write a quick note about the up and coming events of the associate’s council. If you have not done so please enter your team in the Halloween Costume bowling outing. There will be prizes for

all kinds of crazy things especially the best costume. We are in need of lane sponsors and give always so if you can find it in your heart or budget to give us a hand please contact Margret.

We still have a few Sponsorships for the El Paso Desert Open Pro Am and are in need of items for the Goodie Bags. For information call Margret. The tournament (teams)is SOLD OUT. The date of the tournament is November 13th play starts at 9:00 am. All Players must have a USGA handicap (Sun Country card in this area) Happy Halloween to everyone. See you at the Fall Home Show and the Bowling Tournament.

OCTOBER 29

HALLOWEEN BOOWLING 12:00 NOON • BOWL EL PASO • call 778-5387 for info,

Call 778-5387 for more information today.

Builders

utlook

www.elpasobuilders.com www.epbuilders.org 6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038 ■ execuTive oFFicerS edmundo Dena – President Accent Homes Frank Torres – vice President GMF Custom Homes edgar montiel – Secretary/Treasurer Palo Verde Homes Sam Shallenberger – Associates chair Western Wholesale Frank Arroyos- immediate Past President Cisco Homes ray Adauto – executive vice President El Paso Association of Builders

■ TAB STATe DirecTorS Doug Borrett, Karam Co., Life Director Randy Bowling, Tropicana Homes ■ NATioNAL DirecTorS Bobby Bowling IV. Demetrio Jimenez NATioNAL ASSociATioN oF Home BuiLDerS (800) 368-5242

TexAS ASSociATioN oF ■ couNciL/commiTTee cHAirS Associates council Sam Shallenberger Build PAc Randy Bowling Desert Green Building council Javier Ruiz Land use council Sal Masoud Young Designer Award John Chaney remodelers council Rudy Guel membership retention Mike Santamaria, Greg Bowling Finance committee Edgar Montiel Women’s council Lorraine Huit ■ ADviSorY To THe BoArD J. Crawford Kerr, Attorney, Firth, Johnston & Martinez ■ BoArD oF DirecTorS Juanita Garcia, Icon Custom Builders Samira Gonzalez, Edwards Homes Walter Lujan, Dawco Construction Carlos Villalobos, Pointe Homes Don Rassette, Rassette Homes Beverly Clevenger, Automated Division 6 Builders Frank Spencer, Aztec Contractors Kathy Parry, Hunt Communities Sal Masoud, Del Rio Engineering Robert L. Foster, Southwest Land Development Services Leti Navarette, Custom Dream Homes Linda Troncoso, TR-Engineering Lance VanDeman, Hub International John Chaney, Passage Supply Joe Bernal, El Paso Employee Benefits Ken Wade, El Paso Building Materials Ruben Orquiz, MTI Ready Mix Kathy Carrillo, Pioneer Bank Henry Tinajero, West Star Bank Paul Zacour, Zacour & Associates Chuck Gabriel, Carpets West Ted Escobedo, Snappy Publishing Lorraine Huit, Cardel Design Javier Ruiz, Border Solar & Senercon

BuiLDerS (800)252-3625

2012 Builder member of The Year Frank Arroyos Cisco Homes 2012 Pat cox Award Mike Santamaria Mountain Vista Homes 2012 Associate of The Year Sam Shallenberger Western Wholesale Supply John Schatzman Award Hunt Companies

Honorary Life members Rudy Guel Brad Roe Cliff Anthes Wayne Grinnell Chester Lovelady Don Henderson Anna Gil

Past Presidents committed to Serve Greg Bowling Kelly Sorenson Mark Dyer Mike Santamaria John Cullers Randy Bowling Doug Schwartz Robert Baeza

Bobby Bowling, IV Rudy Guel Anna Gil Bradley Roe Bob Bowling, III E. H. Baeza Hershel Stringfield

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. © 2013 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