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EL PASO

ASSOCIATION

years

DIGITAL EDITION OF

BUILDERS

B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 19 4 6

www.elpasobuilders.com www.epbuilders.org

Builders Cutting RD Loan Assistance devastating blow to affordable housing in El Paso

utlook USDA RD Program New Home Price / 1100+ SF

$

Annual % Rate

1.00%

# of Payments / 30 year Monthly Principal and Interest Taxes / Insurance Total Monthly Payment Annual Income to purchase Required Hourly Wage Payment as % of income One Bedroom Apartment / 650 SF Total Monthly Home Payment MONTHLY SAVINGS Min. Annual Income to "RENT" Required Hourly Wage

1% Direct Loan

$ $ $ $ $

96,500.00

2% Direct Loan $

96,500.00

3% Direct Loan $

2.00% 360

360

310.38 210.94 521.32

$ $ $

20,850.00 10.02

$ $

30.00%

2012/8

96,500.00 3.00% 360

356.68 210.94 567.62 22,725.00 10.93

$ $ $ $ $

30.00%

406.85 210.94 617.79 24,725.00 11.89 30.00%

$

670.00

$

670.00

$

670.00

$

521.32

$

567.62

$

617.79

$

148.68

$

102.38

$

52.21

$ $

27,331.00 13.14

$ $

27,331.00 13.14

$ $

27,331.00 13.14

W

Editor’s Note: The following letter was sent to Francisco Valentin Jr., State Director USDA Rural Development by David Ballard, CEO, Partner of the Huntington Group LLC upon the annoucement of the removal of Horizon City and San Elizario Texas from USDA RD eligibility. As an association, we face challenges regarding affordable housing everyday. We are re-printing the letter with Mr. Ballard’s permission to help bring awareness to this issue. Dear Mr. Valentin: It has just recently been made aware of an announcement by USDA Rural Development (RD) that certain Towns in El Paso County are tentatively scheduled to be deleted from the list of areas eligible to receive RD loan assistance (Guarantee and Direct). Specifically the list includes the Town of Horizon City and San Elizario due to the 2010 Census population increases. Although the attached spreadsheet identifying these areas indicates the data is preliminary and subject to change we have been told that the cut-off date to submit remaining RD loans is September 15, 2012 and the effective date to remove these Towns from the eligibility list is October 1, 2012. It is our opinion, if this action is not reversed, RD will be dealing a devastating blow to the affordable housing market in El Paso County. The end result will be an increase in Colonia populations and the “rent to own” scenario. This will also significantly reduced inventory of safe, sanitary affordable housing options for those families most in need. The Texas Secretary of State website identifies three hundred twenty six (326) Colonia’s currently active in El Paso County alone. According to Texas Housing.org “colonias have been defined as impoverished, unincorporated areas with inadequate infrastructure found largely along the U.S. – Mexico border. Many colonias lack adequate water and sewer systems, electricity, street lights,

sidewalks, storm drainage, paved roads, and of course, decent, safe and sanitary housing”. Of the three hundred twenty six (326) active El Paso County colonias, seventy seven (77) are within a five (5) mile radius of the Town of Horizon City. If the radius is increased to eight (8) miles the number of colonias doubles for a total of one hundred and fifty four (154), see attached map. Geographically all of the colonias are east and south of the Town of Horizon City. San Elizario shares a similar demographic. It is important to note that eighty five (85%) percent of the families living in colonias are U.S. citizens which qualify them to purchase housing if housing options are available at an affordable level. The average family is five (5) to six (6) individuals. According to HUD.org “The generally accepted definition of affordability is for a household to pay no more than thirty percent (30%) of its annual income on housing.” Families who pay more than thirty percent (30%) percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care. Texas Housing.org reports as much as fifty one percent (51%) of poverty level households in El Paso pay more than half of their income for housing. The affordable housing crisis in El Paso is further exacerbated by a large increase in the military population which has created a shortage of rental property and significant increases in rental rates. Rick Soto, President of the El Paso Apartment Association as of August 24, 2012 reports occupancy rates at ninety seven percent (97%) with rates at $1.05 to $1.06 per square foot. A standard “one bedroom” apartment of six hundred fifty (650) square feet rents for between six hundred seventy dollars ($670) and six hundred eighty three dollars ($683) per month. A full time wage earner would have to earn at least thirteen dollars and fourteen cents ($13.14) per hour to rent this one bedroom unit and meet the 30% of annual income criteria. Utilizing the RD Direct program this same low income family can purchase a

In short, population must not be the only deciding factor to justify such action by RD. It is imperative that a global approach be taken and the availability and location of existing and basic infrastructure (water and wastewater) considered. three (3) bedroom two (bath) home in Horizon City, Texas. This is a brick and siding home with concrete drive and enclosed garage, refrigerated air, all appliances (washer, dryer, refrigerator, stove, range hood, dishwasher and garbage disposal), paved street with engineered curb and gutter, public water and wastewater, gas, electric, cable and minimum six thousand (6000) square foot lot. These homes typically include the standard one (1) year builder warranty and ten (10) year extended warranty. Note the following comparison using the RD Direct program versus renting. What the above does not include is the ability to build equity that homeownership affords. Nor does it apply the additional annual savings from interest and tax deductions. In addition to the economic gain there are social benefits that cannot be ignored. In a study completed by Richard Green and Michelle White entitled “Measuring the Benefits of Home owning: Effects on Children,” it was determined that homeownership has a significant effect on children’s success. The decision to stay in school by teenage students is higher for those raised by home-owning parents compared to those in renter households. Furthermore, daughters of homeowners have a much lower incidence of teenage pregnancy. A study conducted by the New York Federal Reserve Bank also found that, though homeownership raises educational outcomes for children, neighborhood stability further enhanced the positive outcome. Speaking specifically to low income families Hanushek, Kain, and Rivkin in their published works “The Cost of Switching Schools,” concluded that changing

schools negatively impacts children’s educational outcomes particularly for minorities and low income families. RD, by eliminating Horizon City and San Elizario from its area of eligibility pushes the requirement to construct affordable housing into unincorporated areas of El Paso County that simply do not and will not in the foreseeable future support the necessary infrastructure to even begin meeting the need. The cost of extending infrastructure in these areas is excessive and more importantly unnecessary when resources are readily available and currently in place in both Horizon City and San Elizario. This action will also have a detrimental and direct effect on employment. Many of the contractors currently laboring on these homes will have to lay off employees creating an additional burden on an already struggling work force and economy. In short, population must not be the only deciding factor to justify such action by RD. It is imperative that a global approach be taken and the availability and location of existing and basic infrastructure (water and wastewater) considered. Pushing eligibility lines into outlying areas that do not support this basic infrastructure does not assist families or improve living conditions. In fact, it only serves to penalize these families and forces us to turn our backs on those most in need. We implore RD to reconsider the decision to place the Town of Horizon and San Elizario on the ineligible list for the reasons stated herein and for the sake of the families that will ultimately suffer the consequences of this decision. We appreciate your consideration and pray for a reversal of this decision.


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Builders Outlook

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Builders Outlook

2012/8

President’s Message | Back to school is here. High school football, the sound of bands practicing Frank early in the morning; and kids making Arroyos their way to school. A lot of our work is in family neighborhoods, so please President, El Paso Association pay attention to speed limits, of Builders especially in school zones and help keep our children safe. Right around the corner is the Sunbelt Builder Show in Austin on September 13-15. Please be aware that the level of the education sessions is well above average. That being said register now to be at of these great sessions @ www.sunbeltbuildersshow.com for your free registration. See you there! Last week the Texas Land Board voted to allow an alternative path for TX Vet Loans. All new construction homes had to meet the stringent Energy Star 3.0 guidelines if seeking Texas Vet Financing. Effective July 26, 2012 any homes sold under the TX Vet program is no longer required to be Energy Star, but instead must meet a HERS score of 75 or better on the HERS index, the lower the score the more efficient the home is. “Trust in the Lord with all your heart and lean not on your own understanding; in all your ways acknowledge Him and He will make your path straight.” -Proverbs 3:5-6

El Paso Disposal

772-7495

3


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Builders Outlook

Perspective

2012/8

|

Talking ‘bout my generation - and a few others too Ray Adauto, Executive Vice President EPAB

First I’d like to start by welcoming our newest members into the fold and to remind our supporting members just how important new members are to an organization. At the last meeting we had I presented a quick overview of who we are as far as generationally. What I am pointing out is how we are represented on our board by generation, those born during a certain period of time. I broke down those by following traditional generational references: Greatest: 1901-1924; Silent: 1925-1944; Boomer: 1945-1964; X: 1965-1981; Y: 1982-1999. What I was looking for is for a matrix on the composition of the board in order to help us understand who we are and if in fact we still are relevant. Associations, just like other organizations from Lions clubs to Bar Associations all are feeling the generational changes, and with that the need to evolve or disappear. The Texas Association of Builders has been trying to figure itself out as well. As we look around the state membership some worry creeps in.

From a quick look around the meeting TAB is not sustaining a welcome to generational growth or diversity. That is not the case with El Paso and here are the numbers to prove the case: Greatest: 1 (E.H. Baeza) Silent: 3 (Guel, Dyer and Roe) Boomer: 16 X: 13 Y: none. These generational groups show that El Paso has embraced a younger leadership and is mentoring them for future roles as Executive Leaders. The importance is what drove membership in the 50’s and 60’s started to wane in the 70’s and 80’s. Membership was an important step in getting information, sharing ideas, communicating politics and understanding and influencing growth. It was a man’s world where women were delegated to serve more as supporters but never in leadership. Men met, made the rules, and everyone played by them. Starting in the 70’s those meetings started to see more women and minority involvement and it grew in the 80’s and 90’s. The influence of an association also changed as technology became a source of information that was once reserved to a select few. Things were changing

and the EPAB embraced that change. It’s no surprise that our board leadership is nearly equal when it comes to the Boomer and Gen X’ers. In the coming years we’ll continue to see more Gen X’ers and our first Gen Y leadership coming into the fold. Our membership now has a number of Gen Y’ers and diversity clearly shows continuation. Our executive is led by three Gen X’ers (Frank Arroyos, Edmundo Dena, and Greg Bowling), while we have three Boomers as well (Sam Shallenberger, Frank Torres and me). How we communicate to the membership, what we communicate

ome Your New H eva

to the membership, and when we communicate are all evolving. We still use regular mail to send billing but that’s changing. We have a fax machine because some of our members don’t use email. And we still call, although texting is far more unobtrusive. What you should take away from my message is this: as a business are you reaching, growing and communicating with your staffs and customers? Are you in a position of growth or are you becoming irrelevant. It may be time to evaluate your business and implement change before its too late.

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2012/8

Rising Home Prices Push Affordability Lower In Second Quarter Strengthening house prices in metros across the country contributed to slightly lower housing affordability in the second quarter, according to the National Association of Home Fargo Housing Builders/Wells Opportunity Index (HOI), released today. The latest HOI data reveal that 73.8 percent of all new and existing homes sold in the second quarter were affordable to families earning the national median income of $65,000. This is down from a record high 77.5 percent of homes that were affordable to median-income earners as of the first quarter, and is largely attributable to rising prices in metros across the country. A full 92 percent of metros covered in the latest HOI saw their median home prices rise between the first and second quarter. “While interest rates and overall housing affordability remain very favorable on a historic basis, the

Builders Outlook decline in the latest HOI is a positive development because it is another signal that the housing recovery is starting to take root, and it lends needed confidence to prospective buyers and sellers who have been reluctant to move forward in the current marketplace,” said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. The most affordable major housing market in this year’s second quarter was Youngstown-Warren-Boardman, Ohio-Pa., where 93.4 percent of homes sold during the period were affordable to households earning the area’s median family income of $55,700. Also ranking among the most affordable major housing markets in respective order were Dayton, Ohio; Buffalo-Niagara Falls, N.Y.; Indianapolis-Carmel, Ind.; and Modesto, Calif. Among smaller housing markets, Fairbanks, Alaska topped the affordability chart with 98.7 percent of homes sold during the second quarter being affordable to families earning the area’s median income of $92,900. Other smaller housing markets at the top of the index include Mansfield and Springfield, Ohio; Carson City, Nev.; and Kokomo, Ind. Meanwhile, New York- White PlainsWayne, N.Y.-N.J. retained the title of the least affordable major housing market in the country for a 17th consecutive quarter, with just 29.4

percent of homes sold there being affordable to families earning the area’s median income of $68,300 as of the second quarter. Other major metros at the bottom of the affordability chart included San Francisco-San Mateo-Redwood City, Calif.; Bridgeport-Stamford-Norwalk, Conn.; Santa Ana-Anaheim-Irvine, Calif.; and Los Angeles-Long BeachGlendale, Calif.; in that order. Ocean City, N.J., retained its title as the least affordable smaller housing market in the second quarter, with just 43.8 percent of homes sold in the second quarter affordable to families earning the median income of $71,100. Other small metros at the bottom of the list included San Luis Obispo-Paso Robles, Calif.; Santa Cruz-Watsonville, Calif.; Dover, Del.; and Santa Barbara-Santa MariaGoleta, Calif., respectively.

New-Home Sales Rise 3.6 Percent Sales of newly built, single-family homes rose 3.6 percent to a seasonally adjusted annual rate of 372,000 units in July from an upwardly revised pace in the previous month, according to figures released by HUD and the U.S. Census Bureau today. “Sales of new homes in July returned to the same solid pace they set in May, which was the fastest sales rate we’d seen in more than two

5 years,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “This is further evidence that consumers are becoming more confident in local housing markets as they look to take advantage of today’s very favorable prices and interest rates.” Noting that the three-month moving average of new-home sales has been edging up consistently since last September, NAHB Chief Economist David Crowe said, “Today’s good report is the latest indicator of a gradual, upward trend that we expect to continue through the remainder of this year.” However, he added that “The fact that the inventory of new homes for sale reached an all-time low in July is a worrisome signal that ongoing, unnecessarily tight credit conditions are keeping builders from being able to replenish supplies as consumer demand improves.” Regionally, the Northeast posted the biggest gain in new-home sales with a 76.5 percent increase in July from an abnormal low in the previous month. The Midwest posted a 7.7 percent gain while the South and West registered marginal declines of 1.6 percent and 0.9 percent, respectively. After trending downward for the past six years, the inventory of new homes for sale hit a record low of 142,000 units in July. This is a 4.6-month supply at the current sales pace.


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Builders Outlook

GOP Platform Drafting Committee Shows Support for the MID and Middle-Class Taxpayers The National Association of Home Builders (NAHB) today applauded the GOP Platform Drafting Committee for recognizing the importance of the mortgage interest deduction within its proposed platform. “We are very pleased that the committee has recognized the crucial importance of the mortgage interest deduction,” said NAHB Chief Executive Officer Jerry Howard. “At a time when so many are struggling to recover from the recession, this action helps cement much-needed political support for a tax break that primarily benefits middle-income families.” Including the mortgage interest deduction in the draft GOP platform also makes sense because of the broad support that the incentive enjoys among voters across the country, added Howard. An NAHB-commissioned poll this January found that 77 percent of Republicans, 71 percent of Independents and 71 percent of Democrats oppose eliminating this important tax break. “Middle-class voters have seen their household wealth decline throughout the recession, and to a large extent they are the ones who will decide the outcome of this election,” noted Howard. “They are also the prime beneficiaries of the mortgage interest deduction. With this in mind, it seems obvious that maintaining this cornerstone of American housing policy should be among lawmakers’ primary goals.”

2012/8


2012/8

7

Builders Outlook

Associates Council to host Tent Event at EPAB

Tent Sale, Show ‘N Shine September 29 9:00am-4:00Pm Compass Bank Parking Lot across from Bassett Center

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The association has established a great Speed Networking event over the last three years and many of our Associates and Builder members relish the ability to participate. Two years ago Sam Shallenberger and Ray Adauto put in motion a new concept, one that would be larger, better, and more fun than a regular Speed Networking event. September 29 the Association proudly presents “Tent Sale, Show ‘N Shine” the first annual tent show with cars, exhibitors, food, and fun. Thanks in large part to David Bingham at The Heritage Group, owners of the Compass Bank Building who is lending us the parking lot this event will kick off the Fall season for many of our members. Already there is large excitement from those who are working on the event. Chuck Gabriel, Chair of the event and President of Carpets West said “when Ray and Sam brought this to our committee it went from a little tent outside the association building to a full blown party, a Pachanga,”. Indeed the committee rose to the occasion by laying out the ground work for what could be a much anticipated yearly event. John Dorney who owns Dorney Security and is a new member recalls that everyone at the table got this wild look in their eyes. “You could tell that we were not going to do just a little tent, or a little inside event, no sir, these guys were looking at doing something bigger,” he said. Ideas flowed and the date set, a one day show with some cool things for all ages. “I have to keep reminding myself and the committee that we’re doing this to drum up some sales and leads for our members,” Sam reminds the Outlook. Two bands have signed up to entertain along with a rapper and food vendors are being invited. Our media partner, Comp Corp. who owns KTSM and KDBC TV has signed on as a media sponsor. Member auto dealerships are ready to come out. Rio Grande Wheels Car Club, Phantom Corvette Club, MOPAR Club, and Early Times Car Club have all agreed to bring their jewels to show ‘n shine. Should be a blast. We hope you make plans to attend. Free to the public.


Builders

utlook on the scene |

Bowling fun at Fiesta Lanes The bi-annual bowling event was held at the Fiesta Lanes on the westside August 22. Ninety six bowlers took part in the fun gathering. The bowling event started at noon and went on through the afternoon as teams knocked down pins and enjoyed refreshments. Sponsors for this event were Western Wholesale Supply, HUNT, WestStar Bank, Cisco Homes and Lawyers Title. Kathy Parry from HUNT was able to secure some nylon backpacks along with a clip on pen as a giveaway for each bowler. Prizes were handed out during the afternoon and included giveaways from Western Wholesale, Ferguson, El Paso Building Materials, WestStar Bank and Spectrum Imaging. Additionally Ray handed out Texas Lotto scratch off tickets with the hope that someone would hit a jackpot. “I’d like to thank everyone who came out to this fun event and to those who allowed their employees or customers to enjoy this,” said Sam Shallenberger, Associates Chairman. “Doing something like this really brings our members together for some fun, food, and drink, but mostly they get a great opportunity to network,” he continued. Dorney Security, one of our newest members, was just as thrilled to be bowling. “I have to admit we didn’t know what to expect but we had a really good time and got a chance to meet some great members,” John Dorney said. One member, Don Rassette of Rassette Homes brought his family out. “We bowl in a league here at Fiesta Lanes, and we thought it would be fun to bring the grandkids out along with us. This is a nice family event and we’re looking forward to the next one,” Don continued. The pictures certainly tell the story of event, with winners showing off their prizes, and others showing off their skills. We anticipate our next event sometime in the winter or early 2013.


2012/8

View more photos on our facebook page: elpasobuildersassociation


10 Housing Starts Edge Down 1.1 Percent, Permits Rise In July Nationwide housing production edged down 1.1 percent to a seasonally adjusted annual rate of 746,000 units in July, according to newly released figures from HUD and the U.S. Census Bureau. However, builders pulled more permits for planned new-home projects than they have in any month since August of 2008. “While many builders believe that the outlook for housing is considerably brighter than it has been in years, we are being very careful about keeping inventories tight and not building ahead of demand,” noted Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “At the same time, builders are drawing more permits for new construction so we can accommodate buyers and renters as they return to the marketplace.” “Our latest surveys confirm builders’ increased confidence about future home buyer demand, and that’s reflected in today’s permit numbers,” agreed NAHB Chief Economist David Crowe. “Increasingly, housing is reemerging as a traditional and muchneeded source of strength in local economies as builders are able to put more of their crews back to work. But two things that are slowing this process considerably are the challenges that builders continue to face in accessing credit for viable new projects and the difficulty of obtaining accurate appraisals on new homes.” After four consecutive months of gains, single-family housing starts fell back 6.5 percent to a seasonally adjusted annual rate of 502,000 units in July. Meanwhile, multifamily starts posted a 12.4 percent gain to 244,000 units, their strongest pace since February. On a regional basis, combined single- and multifamily starts declined 1.3 percent in the Northeast, 3.5 percent in the South and 5.3 percent in the West, but rose 17 percent in the Midwest in July. Issuance of new building permits, which can be an indicator of future building activity, rose 6.8 percent to a seasonally adjusted annual rate of 812,000 units in July – the fastest pace in nearly four years. Singlefamily permits rose 4.5 percent to 513,000 units (their best pace since March of 2010) while multifamily permits rose 11.2 percent to 299,000 units. Permit issuance rose in three out of four regions in July, with the Northeast registering a 12.2 percent gain, the South a 5.8 percent gain and the West a 14.0 percent gain. The Midwest posted a 4.2 percent decline.

Builders Outlook

2012/8


2012/8

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Builders Outlook

Guest Column

Fighting Across the Board Cuts to our Military Francisco Canseco Texas Congressman

If you don’t know by now, it may come as a shock that our nation’s defense is set to see across the board spending cuts, or sequester, of 10 percent in January 2013. What might this mean for the millions of soldiers and their families, our nation’s security, and the local economies and businesses that depend on the defense sector? So far, the projections have indicated that it would mean large job losses, decreased national security and a hit to our struggling economy. Our own Defense Secretary, Leon Panetta, has said that such a cut to our nation’s defense spending ‘will do real damage to our security, our troops and their families, and our military’s ability to protect the nation.’ A recent report, Defense Spending

Cuts: The Impact on Economic Growth and Jobs, studied the combined impact of budget caps implemented under the Budget Control Act of 2011 and the law’s across the board cuts under sequestration. What the report concluded was bleak: a loss in 2014 of 1,010,000 private sector jobs, including 130,000 manufacturing jobs, a 1 percent decrease in GDP by 2014, and an increase in the unemployment rate by 0.7 percent. In the report, Texas came in third, behind only California and Virginia, with the largest amount of projected job losses: 109,000. The 10 percent cuts will also mean a weaker military: predictions state we would have the smallest ground force since 1940, a fleet of fewer than 230 ships - the smallest level since 1915 - and the smallest tactical fighter force in the history of the Air Force. Simply put, these types of losses are unacceptable. While I am a fiscal conservative and came to Washington to balance the budget, these types of

across the board cuts are irresponsible and will damage an already struggling national economy while weakening our military’s ability to protect our country. For my constituents who live in and around the Del Rio, El Paso and San Antonio areas, many will face the consequences of these cuts in their daily lives, particularly if they work directly for or with the military bases. Earlier this year, the House of Representatives passed legislation to replace the arbitrary, across the board cuts with targeted spending reductions and other common sense reforms that still achieve the necessary savings, but without putting national priorities – like our nation’s defense – at risk. The problem remains, however, because neither the President nor Senate Majority Leader Harry Reid have joined with the House of Representatives in trying to replace the sequester and prevent its damaging effects. Another challenge confronting us at the moment is the lack of clarity from

the current administration as to where exactly the cuts will come from, should the sequester take place without further action. In an attempt to find clarity for those who will be most affected, the House passed the Sequestration Transparency Act of 2012 to pressure the current administration to specify how the cuts would be implemented. While it is not a bill to stop sequestration, it is an important piece of legislation that seeks to provide some clarity for the thousands of businesses and military personnel who will be affected if sequestration takes place in January. An arbitrary sequester is not the way to balance our budget, particularly if it means such a damaging loss of jobs and a severely weakened military. The House developed a plan to make strategic cuts that preserve our national security; it is now up to the Senate to reach across the aisle and ensure we do not do permanent damage to our economy and our armed forces.

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Builders

Builders Outlook

utlook on the scene |

‘Beto’ at EPAB Town Hall Beto O’Rourke, the Democrat candidate for the 16th Congressional District stopped in to meet with the El Paso Association of Builders on August 23. O’Rourke won a victory over eight term incumbent Silvestre Reyes in a hotly contested race. O’Rourke faces Barbara Carrasco on the Republican side during the upcoming November elections. Mr. O’Rourke took question and presented his thoughts on how the district will look under his term. Members took the opportunity to present views on housing, finance, and the economy. Over twenty five members attended the session.

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Builders Outlook

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EL PASo

ASSoCIATIon

oF

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BUILDERS Membership News years

B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 19 4 6

UPCOMING EVENTS | September 12-15 TAB Meeting and Sunbelt Show Austin Texas

September 19 Board Meeting EPAB Office 12:00 Noon

September 29 Big Tent Sale Show & Shine Compass Bank Parking Lot 9:00 AM-4:00PM

October 10 Board Meeting 11:00 General Meeting 12:00 El Paso Club Chase Bank Bldg. (Downtown)

SODA SPONSOR Thanks to our AUGUST SODA  SPONSOR: PREWIRE OF EL PASO

RENEWALS | Accent Homes

BBvA Compass Bank

Capital Bank, SSB

El Paso Reprographics

Acme Brick Company

Beck & Hall, PC

Carpets West

Karam Company

Automated Division 6 Builders, Inc.

BMC Select

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Barron Supply

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Cullers & Caldwell

Soils Mechanics

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CONDOLENCES To Art Garcia on the loss of his mother Ofelia

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Builders Outlook

An American Hero joins the stardust Neil Alden Armstrong (August 5, 1930 – August 25, 2012) American astronaut and first man to walk on the surface of the moon died on August 25 from complications of cardiac surgery to repair blocked arteries. He was an unusual hero in that he shunned the spotlight of perhaps the greatest accomplishment of mankind and preferred to return to a simple life of teaching. Armstrong was a pilot first, engineer second and dedicated father and grandfather. His strong sense of getting the job done proved lifesaving on numerous occasions as he flew missions over Korea and piloted experimental aircraft. His move into the astronaut corps was a natural extension of his need to ensure that American aviation was the best in the world. As an astronaut Armstrong was among those elite military aviators who embraced the

2012/8

challenge of space flight and of making sure that American technology would be second to none. With the looks of a Norman Rockwell boy Neil Armstrong seemed the least likely of the astronauts to make it to the moon first. Not a part of the original Mercury Seven Armstrong was flying the X15 and X20 Dyna-Soar until the call came to be a part of the Next Nine, those next generation astronauts who would pilot Gemini and Apollo. He was almost lost in space during a harrowing uncontrolled tumble during Gemini 8 as he rode with David Scott. Spinning at about one turn a second after undocking from the booster. This dangerous spin was finally controlled by the actions of Commander Armstrong. Had he not been able to the craft, and the two astronauts would have been America’s first fatalities in space. In 1968, already assigned to the Apollo program, Armstrong was testing Bell Industries simulator Lunar Lander Vehicle. This vehicle was a tethered simulator that mimicked the controls for decent onto the

lunar surface. A serious malfunction occurred during one test and Armstrong was nearly killed. Armstrong called the LM test one of the most important for the team as it provided experience on landing on the moon. As commander of Apollo 11 the chance to be first on the moon was cemented, so long as the mission didn’t encounter problems. NASA and the world were stunned earlier in the program as fire took the lives of three astronauts strapped into Apollo 1. Delays and rotations of crews place Armstrong, Buzz Aldrin, and Michael Collins on the flight to land. Others had been to the moon and circled it or orbited the earth in preparation for lunar landing but Apollo 11 was the one mission with the opportunity. After a routine flight and undocking, Armstrong and Aldrin left Collins in the command module and ascended to the lunar surface. Landing was announced with “Houston, Tranquility Base here. The Eagle has landed.” Not until after the mission was complete did we learn that Armstrong had manually piloted the LEM over boulders with only 20 seconds of fuel

left. “One small step for man, one giant leap for mankind,” came the words from Armstrong as he slid down the ladder onto the surface. Man had indeed leaped from first flight to the moon. With Armstrong, Aldrin and Collins America was on top of the space race. Upon retiring from NASA Neil Armstrong shunned the spotlight, something that could have made him super rich. Instead he taught aeronautical engineering and staying out of politics and the limelight. The least likely and most reluctant all American boy was mourned by the world. He will always live within the hearts of those who bore witness to his most public accomplishments. Neil Armstrong saw the stars and explored; now he joins those same stars as the cosmic dust of eternity. There are heroes and there are heroes. God Bless Neil Armstrong and thank you for your dreams. -Ray Adauto

Hola! Where has this year gone? It seems like yesterday we were installing Frank Arroyos as our new president and now we are five months from Frank being our Past and Edmundo Dena being our new President. It makes me think of the old adage “The older you get the faster time goes by”. Enough of the talk about being old. You are only as old as you act so we still have a bunch of youngsters in our Association! I just want to keep everyone in the loop about our up and coming events. We have the Wheels and Deals “Pachanga” (party) coming up September 29th at the Compass Bank parking lot in front of the Association Office. We have several car clubs that will be

showing their vehicles. There will be a stage with live bands performing and hopefully Gourmet Food Trucks with great food. Last but not least we will have a tent trade show with thirty two 8’x10’ booths available for $250.00 for rent. We anticipate a large turnout due to the advertising and freeway location we have. For more information please contact Ray Adauto. On November 12th the Association will be sponsoring a Pro Am Sun Country tournament at Painted Dunes Desert Golf Course. The event promises to be a great outing with pro golfers from all over New Mexico and West Texas, those guys and gals that you see at the country club or municipal

golf course. This is competitive golf with interest from several of our members. The entry fee is $500.00 per three man team with the pro that makes four. You must have a USGA established handicap to play in this event, and we are limited to 24 teams. More on this in the coming months. We had the Bowling outing on August 22 and Ray informed me that we had ninety six bowlers. As I looked around everyone was having a blast. I want to thank Ray and Margaret for an outstanding job. Thank you for your support and I look forward to seeing you all at the next General meeting.

Associates Council

Sam Shallenberger Western Wholesale Supply

Showroom: 2131 Missouri 915 • 533 • 6045

fax • 533• 6096

Thomas R. Brown, Owner


Builders

utlook

EL PASO

ASSOCIATION

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B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 19 4 6

www.elpasobuilders.com www.epbuilders.org 6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038 ■ execuTive oFFicerS Frank Arroyos - President Cisco Homes edmundo Dena - vice President Accent Homes Frank Torres - Secretary/Treasurer GMF Custom Homes Sam Shallenberger - Associates council Western Wholesale Supply Greg Bowling - immediate Past President Tropicana 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 Affordable Builders council Bobby Bowling IV Associates council Sam Shallenberger Build PAc Randy Bowling Desert Green Building council Javier Ruiz industry Promotions Greg Bowling Land use council Vacant Young Designer Award John Chaney remodelers council Rudy Guel membership Drive Mike Santamaria Finance committee Kathy Carrillo education committee Frank Spencer ■ ADviSorY To THe BoArD J. Crawford Kerr, Attorney, Firth, Johnston & Martinez

BuiLDerS (800)252-3625

2011 Builder member of The Year Greg Bowling Tropicana Homes 20110 Pat cox Award Kathy Parry Hunt Communities 2011 Associate of The Year Sam Shallenberger Western Wholesale Supply John Schatzman Award Bob Bowling III Tropicana Homes ePAB Special Award Rudy Guel Guel Construction

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

■ BoArD oF DirecTorS Joe Bernal, Joe Bernal Insurance Doug Borrett, Karam Co. Kathy Carrillo, Pioneer Bank John Chaney, Passage Supply Sergio Cuartas, BIC Homes Ted Escobedo,Snappy Publishing Art Garcia, El Paso Door Juanita Garcia, ICON Custom Home Builders,LLC

Past Presidents committed to Serve 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

Samira Gonzalez, Edwards Homes Lorraine Huit, Cardel Design Group Walter Lujan, Dawco Home Builders Sal Masoud, Del Rio Engineering Bruce Meyer, JDW Insurance Edgar Montiel, Palo Verde Homes Kathy Parry, Hunt Communities Javier Ruiz, Senercon & Border Solar Frank Spencer, Aztec Contractors Henry Tinajero, WestStar Bank Linda Troncoso, TRE & Associates Ken Wade, El Paso Building Materials Paul Zacour, Zacour & Associates

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. © 2012 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



Builers Outlook 12:8