Buildersoutlook2014issue1

Builders

utlook

www.elpasobuilders.com

2014: issue 1

Now More Than Ever!

Learn what is new in education International Builders’ Show Roundtable at IBS The NAHB International Builders’ Show® (IBS) is again enhancing its education programs to meet the growing needs of building professionals. The 2014 education enhancements focus not only on what attendees learn in terms of content, but also how this information is delivered. Attendees can expect a variety of new session formats, technology upgrades in many of the education rooms, a variety of interactive architectural and design plan reviews, and more hands-on demonstrations both on and off the show floor, all aimed at further improving the learning experience.

Here is an overview of the new and improved Builders’ Show educational lineup: •Building Knowledge Sessions Revamped. With approximately 100 sessions available, attendees will have the opportunity to build their knowledge on a variety of industryspecific topics. Session length has been reduced from 90 to 60 minutes, yet attendees can still expect to get indepth, innovative and concise programs. Areas covered in these sessions include sales, marketing, design, business management, technology, high performance building and more.

•80+ New Speakers. There will be many new and informative programs this year, as over 80 new session speakers are being featured at IBS. They will provide fresh content, informative concepts and plenty of actionable items that attendees can implement immediately.

•New Formats. This year, attendees can expect a variety of session formats, such as case studies, debates, demonstrations, individual

speakers, lightning rounds, town halls and even talk show formats.

•Spotlight Sessions. These sessions are sure to be show-stoppers. They will feature leading industry experts and discuss emerging trends for the coming year including the latest in design, color and kitchen enhancements. Among the dynamic spotlight speakers will be the VP of Community at Houzz, the fast-growing online platform that is changing the way consumers design, build and remodel their homes.

•A Unique Experience – The Tech Hub. This is the place where technology flourishes. The hub will be equipped with advanced technology and will be fully wired so attendees can plug-in and participate in the sessions using their laptops and mobile devices for a complete interactive experience.

Tech-heavy topics such as social media, online business management tools and mobile marketing will be covered in the Tech Hub. •Expansion of Exhibitor Floor Forums. Back by popular demand, attendees don’t have to leave the Show floor for these educational opportunities. Exhibiting companies will offer NAHB-approved education sessions in their booths throughout the Show; these interactive forums will last between 20-60 minutes and qualify as continuing education (CE) for all those who hold NAHB professional designations.

New in 2014, participating companies will also be offering some technology-focused Forums in the Tech Hub. •High Performance Building Zone.

To further the education offered in the exhibit hall, the show will add a “technique demonstration stage” in 2014. This area will be known as the

Builder Confidence Slips One Notch

Rick Judson, a home builder from Charlotte, N.C. “Many markets continue to improve and this bodes well for future home sales.”

“Rising home prices, historically low mortgage rates and significant pent-up demand will drive a continuing, gradual recovery in the year ahead,” said NAHB Chief Economist David Crowe.

“However, the pace of the recovery could be stronger were it not for rising construction costs and inaccurate appraisals that are keeping some home sales from going through.”

Derived from a monthly survey that

Builder confidence in the market for newly built, single-family homes fell one point to 56 in January from a revised December reading of 57 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today.

“Following an unexpected jump last month, builder confidence has essentially leveled out and is holding at a solid level,” said NAHB Chairman

2014 International Builders Show February 4-6 Las Vegas High Performance Building Zone and will feature top building science experts leading a series of live, interactive construction demonstrations showcasing the latest methods, tips and tricks used in high performance building. Demonstrations will range from 19.2-inch and 24-inch on center framing techniques to advanced flashing and air sealing methods.

•More Information-Packed Master Sessions. The number of Master sessions offered has increased from 3 NAHB has been conducting for 25 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for 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 for 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.

All three HMI components declined

to 5 and have been restructured from full-day programs to half days.

Attendees can still expect these sessions to dig deeper into specific industry topics, but this change allows them to take advantage of more IBS activities each day.

•Lumber & Building Material Sessions. For the first time in recent history, IBS is offering content specific for building material distributors and suppliers. Sessions will cover hot topics such as supplier services and OSHA crane regulations. in January. The index gauging current sales conditions edged one point lower to 62, while the index gauging expectations for future sales fell two points to 60. The index gauging traffic of prospective buyers fell three points to 40. Looking at the three-month moving averages for regional HMI scores, the Northeast and West each rose four points to 42 and 63, respectively, while the South held steady at 56. The Midwest fell a single point to 58.

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Builders Outlook

2014 issue 1

HEAT UP YOUR SALES WITH NATURAL GAS. Nothing is more attractive to homebuyers than the right mix of comfort and value. Natural gas homes can provide both.

Natural gas furnaces are more efficient than their electric counterparts, and natural gas dryers can dry two loads of laundry for the cost of drying one load in an electric model.* For more on how to use natural gas to turn your prospects into buyers, contact Eduardo Lucero at ealucero@txgas.com or (915) 680-7216. *Source: Council for Responsible Energy

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2014 issue 1

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Builders Outlook

President’s Message | Frank Torres

El Paso Disposal

President, El Paso Association of Builders

Happy New Year to everybody. I would like to thank all of you members for giving I am honored to be able to serve me the opportunity to lead your association; as your president for 2014. Thanks to all of you that attended the installation, and special thanks to our sponsors, Sierra Title Company, El Paso Building Materials, Tropicana Homes, Lawyers Title, Carefree Homes, Stewart Title, Foxworth Galbraith and MTI Ready Mix (Tony Mullen) for sponsoring the open bar one more year.

Special thanks for Ray and Margaret and the professional women’s council for planning, working and making the installation a successful one.

Congratulations to all the individuals and companies that received awards for their leadership and loyalty not only to the Association but the building industry.

There are mixed feelings and predictions on what 2014 will bring to our industry.

Some experts say that 2014 will be a better year than 2013; others see it differently, because of the adjustments we have to do to comply with the new city codes, energy codes, impact fees, buyer’s qualification rules, increases on building materials, lots availability, and so much more. Home building will be a challenge for sure. Regardless of what the New Year will bring us we must remain united and increase our membership. We must this and more to be successful.

At the first Board of Directors meeting, every director agreed to bring at least two new members by April. I will extend this challenge to every member and ask you to just one more new member. Bring them in and mentor them to success within the association. Remember YOU are the association, it belongs to you. Help the Association to help you and your companies, participate, be part of it, take advantage of your membership, come to the meetings and let us know how we can help. I also would like to invite all of you to participate on the Spring Home and Garden Show, sponsored by the EPAB. Let me say thanks to all of you that are displaying your services and or products at this show. It is my personal challenge to each one of our members to get into the show. What can you do with the thousands of potential prospects? Sell baby, sell!

On another note the IBS (International Builders Show) is coming to Las Vegas February 4, 5, and 6. It’s combined with the Kitchen and Bath show for the first time. Should be fun and an adventure. If you haven't made reservations please make them ASAP the show is filling up quick. See you in Vegas Baby.

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Thomas R. Brown, Owner

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2014 issue 1

Perspective

Ray Adauto, Executive Vice President EPAB

When your great niece turns 17 you have to ask, where is the time going? I remember that bundle of joy coming out of the hospital and taking on all the cuddles and arms the aunts, uncles, grandma’s and grandpa’s, cousins and near cousins. Yep, my great niece and Goddaughter is now 17 and time has flown. I remind her mom that I’m not getting older, she is. Of course I wish time had stopped when I was 17 but then again look at all I’ve gotten and survived since then. I bring up time because here we are in 2014. By now we were supposed to have had a moon base with thousands of commuters going back and forth; we were supposed be flying our cars; energy would be endless and there would be no disease we couldn’t cure. Those were the promises made to me when I was growing up. We all were supposed to be living a utopian

Time: only the future optimist need apply fantasy with all the money we could want while living in spotless communities. Sunshine in the sky, money in the bank, and no worries.

Ugh. The reality is something else isn’t it?

A friend of mine was on Facebook talking about the car that was supposed to turn left but instead hit her car. You might recall I talked about a similar thing in a recent editorial. My friend said it was an “interesting way to start the day.” I’ll say. But you know each one of us does things sometimes without knowing how or why we did it. Such was evident during the recent class we had on the Texas Association of Builders contracts. The class was nice and full and I bet each participant wondered why they were still doing things that could jeopardize their business as our instructor pointed out. The amount of risk each business owner takes

is getting bigger each day as rules and codes and taxes keep growing.

In the orientation class I held recently I asked the question “What did you want to be when you were growing up when you were 7”? Not one person answered that they had wished to be doing what they were doing today. Don’t misunderstand, some of these folks actually were grateful for all they have, but it wasn’t in their plans back then.

As the time we have shrinks the thoughts about what we are and where we are going begin to creep into our daily lives. Some of us are still optimistic. Today for instance I learned that a company here in the U.S. is flight testing a real flying car.

And it looks promising even given the fact that sometimes we forget we have to turn left. The guys doing the test say they’ve included the ‘human factor” into the design.

What enthusiasm and optimism

these guys are showing. We all look at our businesses and go to work with optimism because if we didn’t we’d stay in bed and wait for the sky to fall. Oh there are more things that you and I can’t control fully, but there are ways that we can. If nothing else we must hold onto our optimism. I am glad to be associated with men and women who take the risks, create the homes, and give ordinary people the chance to live a dream. I can’t go back in time but I hope that in my future I’ll look back at today and say we’ve done something good. I can’t wait now to see my goddaughter turn 27, 37 or maybe 47. I’ll be really old, but trust me I’m optimistic.

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Industry News Housing Markets Continue to Show Gradual Improvement

Markets in 56 out of the approximately 350 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity, according to the National Association of Home Builders/First American Leading Markets Index (LMI), released today.

This represents a net gain of two from the previous month. The index’s nationwide score of .86 indicates that, based on current permits, prices and employment data, the nationwide

average is running at 86 percent of normal economic and housing activity.

“More markets are slowly returning to normal levels and we expect this upward trend to continue as an improving economy and pent-up demand brings more home buyers back into the marketplace,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “Policymakers must be careful to avoid actions that would harm consumer confidence and impede the ongoing recovery.”

“Forty-five percent of metro areas are recovering at a faster pace than the nation as a whole, with smaller markets leading the way,” said NAHB Chief Economist David Crowe. “Of the 56 markets that are at or above normal levels, 48 of them have populations that are less than 500,000, and many of these local metros are fueled by a strong energy sector, which is producing solid job and economic growth.”

“More than 35 percent of all the markets on this month’s LMI are operating at a capacity of 90 percent or better of previous norms, which is a good sign that the housing recovery will continue to pick up steam in 2014,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Co., which co-sponsors the LMI report.

Baton Rouge, La., tops the list of major metros on the LMI, with a score of 1.42—or 42 percent better than its last normal market level. Other major metros at the top of the list include Honolulu, Oklahoma City, Austin and Houston, Texas, as well as Harrisburg, Pa., and Pittsburgh—all of whose LMI scores indicate that their market activity now exceeds previous norms.

Looking at smaller metros, both Odessa and Midland, Texas, boast LMI scores of 2.0 or better, meaning that their markets are now at double their strength prior to the recession. Also at the top of the list of smaller metros are Casper, Wyo.; Bismarck, N.D.; and

Grand Forks, N.D., respectively.

The LMI shifts the focus from identifying markets that have recently begun to recover, which was the aim of a previous gauge known as the Improving Markets Index, to identifying those areas that are now approaching and exceeding their previous normal levels of economic and housing activity. More than 350 metro areas are scored by taking their average permit, price and employment levels for the past 12 months and dividing each by their annual average over the last period of normal growth. For singlefamily permits and home prices, 20002003 is used as the last normal period, and for employment, 2007 is the base comparison. The three components are then averaged to provide an overall score for each market; a national score is calculated based on national measures of the three metrics.

An index value above one indicates that a market has advanced beyond its previous normal level of economic activity.

New-Home Sales Post Solid Numbers in November 6Sales of newly built, single-family homes declined 2.1 percent to a seasonally adjusted annual rate of 464,000 units in November from an upwardly revised strong pace of 474,000 units in the previous month, according to data released today by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Except for October 2013, this is the strongest sales pace since July of 2008.

“This figure is consistent with NAHB’s member surveys, which show increasing confidence in the market,” said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. “Meanwhile, the very low supply of new homes on the market and tight credit conditions for home buyers show that builders are still cautious about getting ahead of themselves.”

“The previous three months for newhome sales have all been revised up, and the final quarter of 2013 is shaping up to be the best quarter since the second quarter of 2008,” said NAHB Chief Economist David Crowe.

“Historically low interest rates, affordable home prices and a healing economy are bringing buyers back into the marketplace.”

Regionally, new-home sales were mixed in November. Both the West and the Northeast showed improvement, with respective increases of 31.1 percent and 15.2 percent. New-home sales in the Midwest dropped by 26.6 percent and the South posted a 9.1 percent decline.

The inventory of new homes for sale declined to 167,000 units in November, which is a 4.3-month supply at the current sales pace.

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2014 ISSUE 1

Builders

Builders Outlook

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utlook on the scene |

TAB contracts class spells out risks and rewards for builder members When Scott Whisenant of StrucSure Home Warranty called to get a contracts class going in El Paso he told Ray Adauto that the new Texas Association of Builders (TAB) contracts were better than ever. “I wanted to make sure that the El Paso builder members understood that they put themselves and their companies at risk by not using these contracts,” he told the Outlook. “When I talked with Ray we coordinated the training with the author of the contracts and perhaps the most knowledgeable attorney in the field, James Rudnicki,” he continued. So it was that on January 15 the builder members had the updated contracts class. Builder members came out and some brought their sales staff with them to get a better understanding of the protection the TAB contracts offer. “I brought my sales team with us so that they could hear firsthand how important it is to make sure we are protecting our position as a builder,” said Greg Bowling of Tropicana Homes.

Randy Bowling echoed his brother’s comment. “I want to know certain things about the contracts and hearing it from James gives me confidence in using the contracts,” he said.

Rudnicki, partner in the DFW and Austin law firm of Bush, Rudnicki and Shelton is considered the top authority on the TAB contracts and home building law. “I have been involved in builder contracts for over

14 years and frankly there isn’t much I haven’t seen when it comes to problems that can come a builders way,” Rudnicki told the class. “Bob Bush got me involved in these TAB contracts and today I’m the chairman of the TAB Contracts task force,” he said. Rudnicki developed a PowerPoint presentation that highlighted the changes in the 2014 version of the contracts. “There are lots of great points in our contracts that taken as a whole provide, in our opinion, some of the best protection for a builder we’ve ever offered,” he continued.

This is the fourth time that the association has offered these classes and we anticipate doing more in the future. “When we let our builder member know that we have a class like this we emphasize the opportunity for them to get some information whether they use the TAB contracts or some other ones,” said Ray Adauto. “What struck me was that we didn’t have more builders come to it because frankly for the cost of the TAB contracts you couldn’t buy a half hour of attorney time,” he continued.

The contracts are offered only to TAB builder members online with encrypted password and username. In the past TAB sold CD copies to each builder directly but over the years TAB had realized that others were copying the contracts and giving them away. “When we offer a service or product like this there are needs to protect the users

and us,” said Scott Norman, Executive Director for the Texas Association of Builders. “By making it a little more member direct we protect our assets and the assets of the local association as well,” he continued. Pricing for the contract is around

$300 for a two year subscription, making them very affordable to all the builder members. For information on how to purchase the contract contact the EPAB office

Mission Homes; Joey Najera, Joseph Homes; Carlos Villalobos, Pointe Homes and Frank Torres, President.

“I think that this will get us going in a good

direction,” said Frank Torres. “I have to agree that coming into this position is a little bit scary but then when you look at the mission and the purpose of the association

you begin to realize how important the board is,” said Rodriguez of EP Mass Media. “The commitment is made real at this orientation,” chimed in Joey Najera.

had on the upcoming association events. The first is the International Builders Show in Las Vegas February 4,5,6 and then the Spring Home and Garden Show on February 28. The

Executive encouraged board members to go to and to participate in each. The next board meeting is on February 12 at the El Paso Club, 11 am prior to the General meeting at noon. State Rep

District 77 Marisa Marquez is the speaker and the meeting is sponsored

by Spotlight news, a division of Mass Media Advertising.

Board Orientation The new members of the Board of Directors that were healthy took a Saturday morning board orientation class in early January. The flu season forced a couple of newbies to miss the meeting but they will be brought up to date soon. The orientation began with a breakfast meeting at I Hop where the new board members were joined

by EPAB president Frank Torres and immediate Past President Edmundo Dena.

The directors then moved to the EPAB office to take part in the seminar. Topics ranged from what is expected of the board to the risks involved in being a board member.

The presentation was facilitated by Executive Vice President Ray Adauto.

Those in the class included Bret Thompson, Foxworth Galbraith Lumber; Dan Ruth, Millennium Homes; Orlando Rodriguez, EP Mass Media Advertising; Rigo Mendez,

Board Meeting The first meeting of the year for the Board of Directors was held at the association office on January 8, 2014.

The normal topics of the association were discussed with emphasis on a couple of issues and the need to induct a couple of board members who couldn’t go to the installation.

The Public Service Board issued a report on impact fees with a recommendation to increase the fees by over double per lot. The board listened to several current and past members of the CIAC committee and discussed the potential ramifications of such a move. Past TAB President and Past Chairman of the CIAC Bobby Bowling IV gave a report and challenged the board to fight any increases proposed. “The mere fact that the PSB has suggested increasing the fees is in my opinion absurd,” Bowling told the Outlook. “The impact would be catastrophic at this point given the local building climate and increases in other fees and regulatory charges,” he concluded.

New members were admitted to the association and discussion was also

el paso development news Two Future Retail Developments: Images Offer Look at Possible Designs As the city of El Paso continues spreading outward at its edges, retail developments are in the works to serve newer areas. Though many of these shopping centers are still in the works, some developers offer sneak peeks at what they may look like through renderings, concept images, and site plans.

One such development, at the corner of South Desert Boulevard and Redd Road, will add a 14.9-acre shopping center to the West Side.

The center’s site plan at the RJL Real Estate website (www.rjlrealestate.com) shows multiple parcels surrounding a central larger plot.

The unnamed future center’s rendering shows a traditional layout for a medium-large strip mall, with longer, multi-tenant buildings located along the back and smaller buildings closer to the surface streets. The land, owned by River Oaks Properties according to the marketing brochure, is for sale and may be developed differently depending on whom ultimately breaks ground.

Population numbers within a five mile radius of the area are expected to grow approximately by 20,000 between 2010 and 2018. It is located across Interstate 10 from a larger shopping center which includes an Albertson’s grocery store and a Kohl’s department store.

A short drive north, Centergy Retail of Dallas is developing two large properties across the street from each other. Both properties, at the corner of Paseo Del Norte Boulevard and North

Desert Boulevard, appear on the same site plan at the developer’s website (www.centergyretail.com).

A closer look at the site plan shows a large, 150,000 square foot building on the southeast corner surrounded by nine outparcels, plots that can be purchased or leased for restaurants or retail uses, as seen in many El Paso shopping centers. The outparcels are located along Desert Boulevard and Paseo Del Norte.

On the northeast corner, the layout is more typical of a power center, one that has several spaces for “big box” retailers. One large 135,000 square foot space anchors the north-south building, a structure that will be the size of a typical Target store.

Moving northward, buildings range from a 48,000 square foot space with a layout resembling a combination TJ Maxx/Homegoods store, to smaller 2,000 square foot spaces. Standalone buildings are also included, including 29,050 and 40,000 square foot buildings.

A small cluster of buildings is located in the middle of the property, with spaces ranging from 7,000 to 25,200 square feet. This property also includes eight outparcels. Centergy Retail also developed the Fountains at Farah power/lifestyle center on El Paso’s East Side.

No timelines or costs have been disclosed for either project. Though developers use imagery and site plans to convey a general sense of a retail development’s future, they are subject to change.

An artist’s rendering shows what a future shopping center may look like at Redd Road and S. Desert Blvd., from the marketing brochure at www.rjlrealestate.com. (Concept designs are subject to change.)

This site plan for a project on Paseo Del Norte (www.centergyretail.com) has been color coded to show planned structures, in orange. Outparcels are in beige.

Public Art Projects to Surge in 2014 Dozens of Installations Planned for the Sun City The City of El Paso will receive an update this week on the 2014 Public Art Plan that will list projects already in progress as well as those expected to start this year.

About 29 projects in all are listed in the plan, 21 of which are already in progress while another eight are designated as new. Eight other projects are listed as completed in 2013.

Three of the ongoing public art projects will be located at the upcoming Triple-A baseball stadium, which is expected to open in April. The largest, a $500,000 project, is being developed by BallNogues, a California firm that has exhibited around the world. The working title is “Not Whole Fence” according to the firm’s website, www.ball-nogues.com.

The other two projects will be created by local artists, a graphic installation by Gaspar Enriquez highlighting the area’s

baseball history, and what looks to be a stained-glass installation by Robert Davidoff with local historic imagery that will decorate the baseball stadium’s clock tower.

A few roundabouts throughout the city will benefit from public art installations, including a $500,000 project for the Spur 1966/Schuster Avenue roundabout at the University of Texas at El Paso (UTEP). Artist Donald Lipski will develop the installation in coordination with UTEP’s Centennial Celebration.

Roundabouts at R.C. Poe at Edgemere (Anna Jaquez), Rich Beem at Edgemere (Jose Cano), and Country Club at Memory (Margarita Cabrera) will also get public art projects, with each receiving $70,000 in funds.

Public art will also be used in construction of the Rapid Transit System’s bus stations, with the Mesa Corridor up first in a $240,000 project. Artist Catherine Widgery has developed a screen system that will display local flora when seen from an angle and will be installed at all 22 stations along the corridor.

Washington-based firm Haddad-Drugan will work on the $300,000 Dyer Corridor public art project, while no artist has been chosen for the $300,000 Alameda Corridor project.

Four other projects are underway in

partnership with the Public Art Program, including two planned installations at the El Paso International Airport’s future rental car garage, artist-designed concrete walls along Loop 375, and the Interstate 10 aesthetics project at the Airway Boulevard interchange. These projects represent $863,000 in public investment.

Other future sites for public art include the Westside Pool, Palisades Canyon, Chelsea Pool, the El Paso Zoo, Irving Schwartz Library, Richard Burges Library, Eastside Regional Park, Fire Station #5, the Sun Metro Operations Center, Northgate Transit Terminal, Veteran’s Park, and the Convention Center North Pedestrian Pathway.

Artists have not yet been selected for some of the projects.

The City’s Museums and Cultural Affairs Department is also developing a new Public Art Master Plan which will guide the next 10 years of the program. The last master plan was adopted in 2005.

In all, more than $3.7 million worth of public art projects are currently underway as part of the Public Art Plan, most of which should see completion in 2014 or 2015. Another $675,000 are planned as “new” for 2014. The projects are funded through 2010-2012 certificates of obligation and 2012 Quality of Life

Bonds.

City Council will review the 2014 Public Art Plan at its January 7, 2014, meeting and may vote on whether or not to approve the item.

Builders Outlook Issue 1.2014

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

Closer Look:

El Paso County Comprehensive Mobility Plan $120M County Pledge Will Help Fund Sixteen Projects County of El Paso Commissioners approved spending $120 million last month to help fund 16 major transportation projects throughout the county.

Total costs for the projects are estimated at $392 million.

The 16 projects stretch from west to east and include many both inside and outside the El Paso city limits. Here is a breakdown of the projects, some of which could see construction begin within a year.

I-10 Collector-Distributor Lanes (Mesa to Executive) The Interstate 10 Collector-Distributor Lanes project is separated into two sections in the County’s Mobility Plan. The first stretches from Mesa Street on the far West Side of El Paso to an area just north of Executive Center Boulevard.

The approximately four mile project will, in essence, add a second set of freeway lanes that will “collect” and distribute traffic from off- and on-ramps, and keep them separate from the main lanes in the middle of I-10. Traffic entering and exiting I-10 will use these lanes and will not directly affect the main lanes.

Officials hope to have the environmental study and the schematic design completed by spring of 2014 with construction possibly beginning by the end of the same year. The Texas Department of Transportation (TXDOT) held community meetings in 2012 to update the public on its CollectorDistributor Lanes plan.

I-10 Collector-Distributor Lanes (Mesa Park) The southern portion of the I-10 Collector-Distributor Lanes project involves creating a new overpass at the interstate for a new City street that is part of a future SmartCode development. Mesa Park Drive will take traffic to and from the planned Aldea El Paso development and connect with Mesa Street to the east.

New frontage roads will also be built from Mesa Park Drive to Executive Center Boulevard. Eastbound traffic will have to use the Mesa Park Drive exit to access Executive Center as the current eastbound exit ramp will be eliminated.

This portion of the project has an estimated cost of $25 million and could also see construction begin by the end of 2014.

I-10/Border Highway Connectors (Spaghetti Bowl) This project’s goals are to provide direct connections between I-10 and Loop 375 in the vicinity of the Spaghetti Bowl in Central El Paso. Currently, east and westbound traffic on I-10 cannot access the Border Highway (Loop 375) without exiting onto surface streets.

Transportation officials are looking for a way to incorporate existing ramps to create these direct connections. Current southbound ramps off of I-10 take traffic directly to the Bridge of the Americas Port of Entry.

Preliminary estimates put the project cost at $25 million with an approximate construction contract ready in 2016.

I-10 Viscount-to-Airway Ramp

Improvements Following up on ramp improvements made in recent years along I-10 between Airway Boulevard and Viscount Boulevard, transportation planners now want to “tweak” the ramps and lanes.

The ramps were changed two years ago from traditional diamond interchanges to “X” interchanges to try and alleviate traffic at signals along the Gateways.

Preliminary plans include making changes to the lanes along both Gateway Boulevard East and West and on Interstate 10, including possible addition of lanes. The cost estimate is $12 million with construction slated for 2015.

Loop 375/Spur 601 Direct Connector This project will add a direct connector ramp to an interchange that is quickly becoming one of El Paso’s busiest during rush hour commutes. Currently, the intersection of Spur 601 and Loop 375, two freeways, is a traditional diamond intersection. The proposed project will create a ramp that connects northbound Loop 375 to westbound Spur 601.

The overall project will eventually create a total of four direct connector ramps, but the first is seen as the most important by transportation officials.

Once completed, drivers will no longer have to go through a traffic light to get onto Spur 601.

The ramp will cost about $15 million to build with the environmental study and schematic design set for completion in spring of 2014. According to the presentation given to County officials, the project could be begin construction earlier than the scheduled 2019 date.

I-10/Loop 375 Direct Connectors Three ramps have been constructed and three others are now under construction at the I-10/Loop 375 interchange in Far East El Paso. This project aims to build the final two direct connectors at the site.

The final ramps will connect southbound Loop 375 and northbound Loop 375 to eastbound I-10. The environmental study and engineering schematics have already been completed as part of previous ramp construction. The project is also one that may be expedited but currently has a possible construction start in 2019.

Delta Overpass Delta Drive near Downtown El Paso may see additional traffic as part of the massive Border Highway West project which will bring new ramps to the area near Coles Street. Transportation officials are now planning to build a Delta Drive bridge that will take traffic over railroad tracks.

The area of focus is to the southwest of Bowie High School where new ramps will take traffic to and from Loop 375 east of Downtown. The $8 million project could begin construction in 2015.

I-10/FM 1110 Bridge Replacement The Farm-to-Market Road 1110 overpass bridge at I-10 outside of the city limits will be replaced and widened in

this project. A brand new, six-lane overpass will be constructed. The overpass is located at the Clint exit on the interstate and also the southern end of Darrington Road.

Construction on the $12 million project may begin in 2015.

FM 1110 Construction/Upgrade A related project will widen and expand FM 1110 from I-10 to SH 20 (Alameda). Currently, the road that meanders to the Clint area is a two-lane thoroughfare. The project will create a four-lane, divided arterial for approximately three miles.

The $38 million project could see construction start in 2015.

Eastlake Boulevard/Old Hueco Tanks Three projects combine to affect the same thoroughfare just outside of the city limits. First, one of Horizon City’s main connections to I-10 will be getting an extra lane. Eastlake Boulevard will be expanded from four to six lanes from the interstate eastward to Darrington Road. The approximately $15 million project will stretch about 3.6 miles and could see construction start in 2015.

Another project will expand the new six lane Eastlake eastward and connect it to Horizon Boulevard near Horizon High School. The $23 million project may also begin construction in 2015.

And on the western terminus of Eastlake (at I-10), a project is in the works to build a four lane road westward and connect it to North Loop.

Preliminary costs for Old Hueco Tanks Road are $12 million with a construction date set for 2015.

Rojas Widening Another project outside of the city limits is the plan to widen Rojas Drive from four to six lanes. The $4 million project stretches from the El Paso city limits to Eastlake Boulevard, or about 0.6 miles.

It should be ready for construction in 2015.

Greg/Edgemere Blvd. Extension Edgemere Boulevard ends about 0.7 miles east of Zaragoza Road in Far East El Paso. This project will extend it another 1.7 miles, approximately, to the east and connect it to Greg Road in the Montana Vista area of the county. The $1 million project could break ground in 2016.

Four of the projects that will be helped by the County of El Paso include (counterclockwise from top left) the Spur 601/Loop 375 Direct Connector, the I-10 CollectorDistributor Lanes, the Americas Interchange Direct Connectors, and the Mesa Park Overpass and Frontage Roads. (County of El Paso)

Arterial 1 This project will create a stillunnamed thoroughfare from Eastlake Boulevard to Pellicano Drive. The nearly two mile road will travel north and south and will brush the western edge of the Horizon Airport. The $7.5 million project may see construction start in 2016.

Manuel F. Aguilera Highway The final project on the Mobility Plan’s list is to construct a “non-freeway” road in the vicinity of Tornillo in the far eastern section of the county. The Manuel F. Aguilera Highway will help ready the area for possibly increased traffic when the new Tornillo Port of Entry is opened.

The $17 million project may break ground in 2015.

Financing for the $392 million worth of projects will come from multiple sources. The County’s approximately $120 million comes from $72 million generated from increased vehicle registration fees and $48 million from its Transportation Reinvestment Zone.

The Town of Horizon is kicking in $5 million and the City of Socorro another $9 million from their respective Transportation Reinvestment Zones.

The remaining $258 million will come from funds leveraged by TXDOT, the Metropolitan Planning Organization, and other sources, according the Plan.

The Camino Real Regional Mobility Authority is expected to develop and manage the majority of he projects. The Authority was formed in 2007 by the El Paso City Council and has helped several projects be realized in the city, including Spur 601 and the Americas Interchange.

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Builders Outlook

2014 issue 1

The Economy

New mortgage rules for this year

By Jill Schlesinger, Tribune Content Agency Retire Smart

Big changes are sweeping through the mortgage market this year. The new rules, created by the Consumer Financial Protection Bureau (CFPB) as mandated under the Dodd-Frank Act, ban some of the lending practices that contributed to the housing boom and bust.

As of January 10, there is a new class of mortgages called "Qualified Mortgages" or "QMs". Borrowers who qualify for these loans are presumed to be able to repay the loan for many years, not just during the first few months when an initial "teaser" rate can keep monthly payments low.

Additionally, many previously popular loans are banned. Those include interest-only loans; negatively amortizing loans, which can allow your loan principal to increase over time, even though you're making payments; and balloon loans, which have larger-than-usual payments at the end of the term. The new rules also prohibit loans that are longer than 30 years and limit excess upfront points and fees, depending on the size of your loan. For example, a loan over $100,000 can't be a QM if it has points and fees that are more than 3 percent of the loan amount.

Any lender who wants to underwrite a Qualified Mortgage will have to determine a borrower's ability to repay a loan by considering factors like the borrower's income, assets, debts, and credit history. Another feature of a QM is a limit on how much of income can go towards the mortgage- the debt can't exceed 43 percent of monthly income. Additionally, to be considered a Qualified Mortgage, the loan must qualify for purchase or guarantee by Fannie, Freddie or by a federal housing agency; or the lender must keep the loan in its portfolio for a period of time.

Mike Raimi, President of PMAC Lending Services, says that QM should benefit consumers in some respects, though it may make it more difficult to secure financing for others, especially jumbo borrowers (those who borrow more than $417,000 in most markets and up to $625,500 in higher priced markets). Although the new rules may become the norm, Raimi reminds consumers that "Fannie Mae and Freddie Mac will still accept non-QM loans, which are often approved for borrowers with up to 55 percent debt-to-income ratio."

What do you need to know about attaining a mortgage now? According to Raimi, "The process has improved, but it is still labor intensive."

Mortgages for new home purchases can take about three weeks to close, while refinancing can take longer "anywhere from 30 to 60 days."

If you are looking for a 30-year conventional mortgage with 20 percent down, the best rates are available for those with credit scores above 740. For every 20-point drop in score, the mortgage rate jumps by approximately a quarter of a percent.

If your credit score is below 620, it's tough to get a loan closed, unless you qualify for the government's HARP plan or are working with FHA. (Credit scores do not have nearly as much impact on loans of 15 years and shorter.)

Whether you are trying to refinance or buy a home with a mortgage, here is what you will need: • W-2 (2 years) • Tax Returns (2 years) • Pay Stubs (2 months) • Bank statements -- all pages (2 months): You may be required to

provide an explanation for large deposits. This has more to do with anti-money laundering efforts than the mortgage process itself.

• Up to six months of mortgage payments in cash reserves.

tax preference items. While you may have used the tax code to your advantage, the bank will not cut you any slack -- the numbers on the return are set in stone.

Two more items that you are likely to need: patience and perseverance!

• Investment accounts, if bank accounts do not show adequate assets.

• Donor letter: If a family member or friend is helping you with your down payment or providing cash for the refi, he or she may be required to provide a letter and may also have to present his or her account statements.

• Self-employed applicants: Must have 2 years of proof of selfemployment and 2 years of tax returns. Gone are the days when selfemployed borrowers can "add-back"

Jill Schlesinger, CFP, is the Emmynominated CBS News Business Analyst. A former options trader and CIO of an investment advisory firm, Jill covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money."

She welcomes comments and questions at askjill@moneywatch.com. Check her website at http://www.jillonmoney.com)

2014 issue 1

11

Builders Outlook

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Builders Outlook

2014 issue 1

2014 Issue 1

13

Builders Outlook

www.elpasobuilders.com www.epbuilders.org

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14

Builders Outlook

2014 issue 1

Associates Council

Sam Shallenberger Western Wholesale Supply

Hello and Happy New Year, I hope everyone had a great Holiday season. I love it because of all the games that we have here locally. The WestStar Bank Don Haskins basketball invitational was awesome with our Miners winning two close games. One of the big highlights was the announcer Uncle Ray Adauto was back where he belongs during basketball season behind the microphone. (Miner Ball). The Hyundai Sun Bowl was great as well and to make it real special we had the best weather in the nation. I got a sun burn to prove it.

This should be a exciting year for all of us.

We have the Home and Garden Show coming up Feb. 28, March 1and 2nd. If you don't have a booth you are missing a big opportunity. We also have the spring Golf Pachanga coming up in late March or early April. We will announce the date soon. It’s time for you to get your advertising sponsorships ready as we’ll be needing each one of our members to advertise with us at this event. We are looking at a couple of locations and we promise you’ll have a great time.

While it’s about some fun and good times our efforts are all about making sure we continue to have a new home construction

business in El Paso. Recent decisions from the Obama administration have confused the market and make it a little tougher for mortgage and banks to make mortgages.

Your membership in the EPAB is helping get the message to Congress, the state and local governments that we have to have housing in order to keep our businesses open. More restrictions and government isn’t what we need right now. I know I’m preaching to the choir but our collective voice carries weight.

I hope this year brings health, happiness, and great business for 2014.

Trends What’s trending in hardware?

David De Rego Hardware Specialities & Glass Co., Inc.

Mortise vs. Tubular Style Locks Now a days with so many choices for door hardware it’s hard to decide which to choose from. When you consider hardware, there are two different and distinct types of locks: tubular style and mortise style. One is more secure, and the other is more popular. One is expensive compared to the other but what kind of value do you put on security? And while one is easier to install, the other requires special equipment. But which is which?

Mortise A mortise style lock is the most secure form of an entry set. The reason??? A special cut in the door allows a longer and thicker mortise to slide into the pocket in the door itself, providing superior protection. These types of locks require special door preparation, so if your door isn't currently cut to fit this kind of lock, you

(or a professional installer) will need to use a mortise saw to cut into the door so the lock fits properly. Take note that not all mortise locks have the same dimensions. So prior to any door alteration, take careful measurements.

This kind of lock was commonly seen in homes prior to 1940 (before the introduction of bored cylindrical locks), but is still available today in single cylinder, double cylinder, and dummy set.

Tubular The tubular style lock is commonly found on all types of doors, most notably interior residential and office doors. It boasts excellent security for most applications and is usually quite easy to install and replace if standard bore holes are already cut in the door. Make sure your new latch has the correct backset length (the measurement from the edge of the door to the center of the bore hole), and just follow the

installation instructions. The most popular types of tubular style locks are single cylinder and double cylinder.

So, when choosing the right lock for your doors keep in mind the lock is just one factor in securing your door. To help provide more security you must have a good solid quality door along with very sturdy and reinforced jambs and together with the lock of your choice you will have peace of mind. For further assistance please contact your local lock distributor or hardware representative.

Builders

utlook

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

■ 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 Carlos Villalobos Women’s council Lorraine Huit ■ ADviSorY To THe BoArD J. Crawford Kerr, Attorney, Firth, Johnston & Martinez ■ BoArD oF DirecTorS Beverly Clevenger, Automated Division 6 Builders, Inc. Leti Navarette, Custom Dream Homes Kathy Parry, Hunt Communities Edgar Garcia, Bella Vista Custom Homes, Inc..

Bud Foster, Southwest Land Development Services Juanita Garcia, ICON Custom Home Builder, LLC Walter Lujan, DAWCO Home Builders Joey Najera, Joseph Custom Homes Rigo Mendez, Mission Homes Nick Bombach, Casas de Leon, LLC Lydia Mhouli, Crown Heritage Homes JJ Vasquez, Pacifica Homes Dan Ruth, Millenium Homes Ken Wade, El Paso Building Materials Ruben Orquiz, MTI Ready Mix Kathy Carrillo, Pioneer Bank El Paso Henry Tinajero, WestStar Bank Chuck Gabriel, Carpets West Ted Escobedo, Snappy Publishing John Chaney, Passage Supply Joe Bernal, Employee Benefits of El Paso Linda Troncoso, TRE & Associates Margaret Livingston, Lawyers Title of El Paso Orlando Rodriguez, Mass Media Advertising, Inc. Bret Thompson, Foxworth Galbraith Lumber Chris Worm, City Bank Texas Sal Masoud, Del Rio Engineering

■ TAB STATe DirecTorS Randy Bowling Greg Bowling

■ NATioNAL DirecTorS Bobby Bowling IV. Demetrio Jimenez NATioNAL ASSociATioN oF Home BuiLDerS (800) 368-5242

TexAS ASSociATioN oF BuiLDerS (800)252-3625

2013 Builder member of The Year Edmundo Dena Accent Homes 2013 Pat cox Award Sam Shallenberger Western Wholesale Supply 2013 Associate of The Year WestStar Bank Larry Patton, Burt Blacksher and Henry Tinajero

Honorary Life members Wayne Grinnell Don Henderson Chester Lovelady Cliff C. Anthes Anna Gill Brad Roe Rudy Guel E H Baeza 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 Pat Woods

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. © 2014 Builder’s Outlook is published and distributed for the El Paso Association of Builders

by Ted Escobedo, Snappy Publishing ted@snappypublishing.com El Paso • Texas • 79912 915-820-2800