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EL PASO BUILDERS A S S O C I AT I O N O F
www.elpasobuilders.com
National, State & Local Building Industry News 2017: Issue 2
RALLY 20 DAY 17 Builders Outlook Special Edition
EPAB meet with leaders in Austin for Rally Day
RALLY DAY 2017
Members of the El Paso Association of Builders attended Rally Day at the State Capitol February . The biennial event allows our members the opportunity to meet with legislators and discuss issues that will impact the housing industry. More photos on page 8
by Ray Adauto The El Paso Association of Builders (EPAB) took a trip to the Capitol on February 22 to visit with the El Paso delegation in their offices. The purpose of the trip was to present the political agenda for the Texas Association of Builders and the El Paso Association of Builders. A total of twenty members and two Friends of the EPAB joined together for the trip. The delegation was led by President Don Rassette, Randy Bowling and Bobby Bowling IV as captains for Rally Day. The El Paso contingent joined over 800 other Texas Association of Builders members who traveled to the event from all over Texas. In attendance were: John Chaney Sam Shallenberger Sergio Cuartas Erika Cuartas Edmundo Dena Edgar Garcia Maribel Garcia Frank Ortega Giselle Ortega Don Rassette Luis Rosas Fernando Torres Walter Lujan Carlos Villalobos Randy Bowling Bobby Bowling IV Gus Loy Laura Loy Margaret Adauto Ray Adauto and from Austin joining us for the visit was Alexis Adauto Ferguson, from Cedar Park and Ruth Rivera, our new retirement agent who lives in Round Rock. The visit was coordinated over the last few months and scheduling appointments with each of our five state Representatives and
the Senator. In addition to the visit with our delegation we had the opportunity to attend El Paso Day’s reception and join with a large contingent of community and business leaders in Austin to promote El Paso to the greater Texas state delegates. We were on the plane with such notables as Mayor Oscar Leeser, City Manager Tommy Gonzalez, City reps Emma Acosta, Peter Svarzbien, and Carl Robinson; Greater Chamber President Richard Dayoub and Chairman Jack White; EPAB member Doug Schwartz and wife Emma; among many others. The trip began with an unofficial lunch at an Austin favorite Gus’s Memphis Style fried chicken where our own Laura Loy learned that this wasn’t just any fried chicken but one that was a tad spicy. From there a contingent went on to the Bullock Texas Museum of History for a lesson on how Texas became Texas. This fascinating museum has blended the history of Texas and its people in a fun factual lesson on the story of us. “I have to say that this was a neat experience for me as a history buff and as a guy who just loves learning,” said John Chaney. Sometimes it was Chaney who turned teacher and gave the rest of us, especially Carlos Villalobos, a historical viewpoint not necessarily on the walls at the museum. We found that getting around Austin is challenging and sometimes pricey due to this city’s ban on Uber and Lyft the standard bearers of off taxi car sharing. Taxis were easily found but they are also keen on taking you off the most direct path unless you remind them. A short rest and then it was off to our ‘Thank You for attending’ dinner. This event was held at the Capital Grille, one of Austin’s nicest steak houses and located within walking distance of our hotel the Driskill. Dinner was hosted by Morrison Supply, HUB International and Passage
Supply. Our thanks to them for making the dinner something we won’t soon forget. Our morning began with a quick early trip to visit our newest representative Evalina Ortega and her staff. President Rassette led our early contingent to meet with her and
present our important legislative agenda and frankly to let each one of us meet each other. As a freshman Representative Ortega is hard at work to learn the ins and outs of the system. She has a capable staff to help but the action is fast and furious. Our next visit was with Representative Joe Moody and we were joined by the entire contingent in his office. Moody welcomed us and sat down with our captains Bobby and Randy Bowling as Bobby IV led the conversation on the TAB agendas and our hopes for the El Paso area. Representative Moody took the information packet and gave us thanks for the time we spent with him. The El Paso Contingent, dressed in white shirts with the new EPAB logo stitched on them were easily identifiable. It also allowed our twenty two to look like forty two as we jammed office after office and hallway after hallway. Our next visit really told that story best.
We made our way to Senator Jose Rodriguez’s office and unfortunately he was tied up in committee meetings on the floor of the Senate. However his staff called to let him know that we had “invaded” his office and he was soon in the room with us. We were joined by his staff. Senator Rodriguez has been a good friend to new home construction and construction trades overall. Our primary talk turned to education and the need for the state to fund trades education at the high school level and to provide funding for transportation and liability insurance for students who are taking courses in the trades. Bobby pointed out that “you can draw house framing on the chalk board but you can’t learn how to nail it” without going onsite, and for that to happen Texas needs to fund trades education. Senator Rodriguez was very supportive of our stand and said he would champion whatever he could to get that done. Our twenty minutes turned to thirty and we thanked the Senator well. The contingent then visited with Representative Mary Gonzalez who asked a simple question when we walked in. “Where’s the women” and if just on que the women walked into the office. Representative Gonzalez is concerned with immigration and equal rights, including our concerns with immigration and labor. Representative Gonzalez has been appointed to the appropriations committee, a plum appointment where the action is all about who gets funded. Our next visit was with Representative Joe Pickett the senior legislator from El Paso and one of the highest ranking House members on the hill. He is transportation Chair and with that comes all the responsibilities of the Texas Department of Transportation. He is an expert in transportation and to prove that point he has a real model T in his office that he and his son hand built piece by piece. Pickett, an avid car collector, said he had to sneak each part in through security. “It got kind of hairy at the end because we almost got caught bringing in the engine lift”, referring to the huge hand crank that lifts the engine into the body. He has some serious concerns on whether or not this session will produce anything of value due to the infighting amongst the senate, legislators and executive branch. “I don’t expect much until we quit fighting...” he said. Our final visit was with Representative Cesar Blanco. He met us in the hallway outside Pickett’s office and promptly took us to the floor of the House. Blanco gave the contingent a private escorted tour of the chamber from inside the “gold Rail” something that is unusual except for some very important guests. He showed the group all the inner workings of his desk and pointed out that there is a bible in each desk that is marked by each of the reps who sat at that desk with their favorite bible verses. Lots of photos later we had to leave the chamber and head back to the Driskill for the reception for our delegation and staff. All in all the day was full, lots of walking and lots of climbing stairs. It was fast and furious but fruitful. With our thanks to those who made the trip or joined us in Austin.
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Builders Outlook
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2017 Issue 2
2017 Issue 2
President’s Message Engagement - The act of engaging; an encounter, conflict, or battle; involvement. At the national level, NAHB has been engaged with president Trump’s team and given ideas and recommendations as they relate to housing. NAHB is emphasizing to the public officials that a healthy residential construction industry benefits homeowners, homebuilders, material suppliers and communities. ln addition, NAHB will continue to stress how housing friendly policies will keep the overall economy on an upward trajectory. This is a great start, but NAHB must keep up the communication and momentum. Engagement with congress is also vital. The message needs to be that overly burdensome regulations are adding to the cost of a home and pushing homeownership out of reach for many deserving families. Closer to home was our recent Rally Day at the state capital in Austin. Approximately 20 members from our local association made the journey on Wednesday, February 22nd, to meet with and share our concerns on legislative bills for this year. The legislators that our association met with were the following: senator Jose Rodriguez and Representatives Mary Gonzalez, Lina Ortega, Cesar Blanco, Joe Moody and Joe Pickett, all
Builders Outlook Don Rassette
President, El Paso Association of Builders
representing the El Paso area. Almost overwhelmingly, was the favorable reception from each legislator, at the number and professionalism of our group. To each one of our area legislators we “THANK YOU” for working towards the best interests of the El Paso area. With each legislator, our association presented the following 2017 Legislative Priorities: 1) Prohibit fees and taxes that are placed on all new construction in order to subsidize housing for the few (1.E. Linkage Fees). 2) Strengthen Vested Property Rights by reestablishing the commonly held notion that court costs and attorney fees are available to both sides in Vested Rights action. 3) Support Legislation that protects Texans from unreasonable regulations and practices that arbitrarily diminish the value of private property by imposing overreaching restrictions or fees on its reasonable use. 4) oppose any overhaul of the mechanic's lien system that will significantly harm the construction and real estate market as a whole. 5) Oppose changes that would create lengthy requirements and barriers before landowners can be granted releases from Certificate of Convenience and Necessity (CCNs). 6)
Members encouraged to engage
Oppose measures that will have the unintended consequences of limiting the ability of Municipal Utility Districts (MUDs) to cost effectively finance much needed housing infrastructure. Each one of these priorities has the goal to keep housing affordable! For the El Paso Association of Builders delegation numbering 20 strong, THANK YOU, for your engagement. Real close to home EPAB will be engaged in the upcoming local elections. As an association, we will take similar stances, as prioritized above and as it pertains to personal elected official's whims, to keep the local housing affordable for the many. lf you haven’t already, I encourage you to donate to our local BUILD Pac fund so we can contribute to candidates' campaigns, that our association decides to endorse. ln addition, this is also one of our yearly goals, as stated in my January Outlook column. From the national level, state level, and at the local level pertaining to legislation, it is quite apparent that thousands of dollars are saved by our political caucuses working for us, to maintain affordable housing. When you wander or someone asks about our associations value, to us as members, please engage with them and discuss with them all of the above and how
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much it could impact higher housing prices that could disqualify many deserving families. Switching topics, I would like to remind everyone of actions taken at the recent association meetings. First, the EPAB bylaws have been revised to create more opportunities for Associate Members. Thank you to Brad Roe in reviewing and writing the verbiage needed for adoption into our bylaws. Also, committees have been formed to further our goals on increasing membership, increasing membership retainage, a member ambassador program, a member kit, awards to recognize excellence within our industry and to incorporate more education into our association on a variety of topics. Thank you to Ted Escobedo and Patrick Tuttle for ramrodding these areas. Also, in cooperation with Bukaty Companies and Ruth Rivera we have an association sponsored retirement program which will provide another value from and for our association and its members. lf you haven't already, please engage to make our association bigger, better and stronger. ENGAGE-PREPARE TO SUCCEED
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Builders Outlook
Executive’s Message Ray Adauto, Executive Vice President EPAB Every two years the Texas legislature meets in Austin, a carryover from the early days of the Republic when it was a long trek from outlying parts of the state. The biannual sessions continue today as a matter of tradition and frankly work load. It is during session that the Capitol is inundated with people seeking to meet and influence their representatives and Senators on interest that they have and need to impart to them. On any given day during session we see associations, trade groups, individuals and of
2017 Issue 2
Rally day is about Legislative Issues and the reason why you are a member of EPAB
course other politicians who have only a few days every two years to influence the outcome of legislation for or against them. The El Paso Association of Builders goes to ensure that El Paso’s new home building industry is fully represented with our own particular set of requests. We join our sister associations from around Texas who are there as a Federation to influence and persuade the legislators to our agendas, pro or con. This session the Texas Association of Builders (TAB) drew up a larger than normal issues agenda because the need for doing so is growing and our industry is under attack. Here’s
the top legislative priorities for this session in no particular order: Prohibit fees and taxes that are placed on all new construction in order to subsidize housing for the few; Strengthen Vested Property Rights by reestablishing the commonly held notion that court costs and attorney fees are available to both sides in Vested Rights actions; Support legislation that protects Texans from unreasonable regulations and practices that arbitrarily diminish the value of private property by imposing overreaching restrictions or fees on its reasonable use; Oppose any overhaul of the mechanic’s lien system that will significantly harm the construction and real estate market as a whole; oppose changes that would create lengthy requirements and barriers before land owners can be granted releases from Certificates of Convenience and Necessity (CCN’s); Oppose measure that will have the
unintended consequence of limiting the ability of Municipal Utility Districts (MUD’s) to cost effectively finance much needed housing infrastructure. So in a nutshell your membership is at the table asking for legislation that impacts you as a business. These top priorities are simply the tip of the iceberg because there are frankly too many issues trying to poke into your business every day. Our team of volunteers, like those who travel to Austin and Washington, D.C. on our behalf or the lobby teams in both those cities are something that you may never see but know that they are working for you. This session will determine our next two years of how we do business in Texas. Ask those members who went to Rally Day if they got a new understanding of what membership is really about. They can quickly answer “What do I get from being a member?”
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2017 Issue 2
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Builders Outlook
National Builder News
NAHB Applauds President Trump for Move to Fix Flawed WOTUS Rule
procedural and substantive grounds. NAHB has led the effort to address industry concerns with the 2015 rule on the regulatory, legislative and judicial fronts.
n President Donald Trump today honored a campaign promise made to home builders as he signed an executive order directing the Environmental Protection Agency (EPA) and the Army Corps of Engineers (Corps) to begin the process of rescinding or revising the controversial "waters of the United States" (WOTUS) rule. When then-candidate Trump spoke at the National Association of Home Builders’ (NAHB) Board of Directors meeting in Miami in August, he vowed to cut WOTUS and other burdensome regulations that drive up the cost of homes for hardworking Americans. Trump quoted a 2016 NAHB study when he noted that 25 percent of the cost of a home is due to regulation. “NAHB commends President Trump for listening to our serious concerns about the flawed WOTUS rule that goes so far as to regulate man-made ditches and isolated ponds on private property,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas, who was present for the signing of the executive order today. “This is an important first step toward reworking the flawed regulation and moving toward a more sensible WOTUS rule.” The rule has also been legally challenged by more than 30 states and numerous environmental groups on both
The executive order provides direction to EPA and the Corps to reconsider the rule that dramatically extended the areas in which home builders are required to get permits, blatantly usurping state and local regulatory authority. Two courts have already ruled that it is likely that the rule is illegal and have issued a temporary halt to its implementation. “NAHB looks forward to working with the Administration, EPA Administrator Scott Pruitt and the Assistant Secretary of the Army for Civil Works, when approved, to develop a common-sense solution to protecting our nation's waterways while taking into account the interests of local businesses and communities nationwide,” MacDonald said.
Apartment and Condominium Market Keeps Momentum Going
n The Multifamily Production Index (MPI), released today by the National Association of Home Builders (NAHB), posted a gain of two points to 55 in the fourth quarter. The MPI has been at 50 or above for five straight years. The MPI measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to
BUILDING
Multifamily developers are feeling optimistic about the market as demand for renting remains robust,” 100. The index and all of its components are scaled so that a number above 50 indicates that more respondents report conditions are improving than report conditions are getting worse. The MPI provides a composite measure of three key elements of the multifamily housing market: construction of low-rent units, market-rate rental units and “for-sale” units, or condominiums. Low-rent units remained unchanged at 54 while marketrate rental units rose one point to 58 and for-sale units increased three points to 53. The Multifamily Vacancy Index (MVI), which measures the multifamily housing industry's perception of vacancies, remained unchanged at a reading of 42, with lower numbers indicating fewer vacancies. After peaking at 70 in the second quarter of 2009, the MVI improved consistently through 2010 and has been fairly stable since 2011. “Multifamily developers are feeling optimistic about the market as demand for
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renting remains robust,” said Dan Markson, senior vice president of The NRP Group in San Antonio, Texas, and chairman of NAHB’s Multifamily Council. “However, regulatory burdens remain a challenge to the industry, which affect developers’ ability to meet this demand.” “Given the recent strength of multifamily starts and permits numbers, it is not surprising that multifamily developer sentiment remains positive,” said NAHB Chief Economist Robert Dietz. “Our current forecast calls for multifamily production to stabilize at a solid rate and stay there through 2018.” Historically, the MPI and MVI have performed well as leading indicators of U.S. Census figures for multifamily starts and vacancy rates, providing information on likely movement in the Census figures one to three quarters in advance. For data tables on the MPI and MVI, visit www.nahb.org/mms.
SINCE 1950
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Builders Outlook
Expert Analysis
2017 Issue 2
With Interest Rates So Low, Should the Deficit be Bigger?
Elliot Eisenberg Economic & Policy Blog
The US government can currently borrow at exceptionally low interest rates. After considering inflation, the rates are sometimes zero or even negative, meaning that the government is effectively getting paid to borrow. Under these circumstances and with GDP growth quite anemic, isn’t the case for increased borrowing overwhelming? After all, the benefit of public investment in roads and bridges must surely be greater than zero, right? Maybe not! If the economy were operating substantially below its potential -- if the unemployment rate were high -- the case for borrowing more and running larger budget deficits would be strong. The added stimulus from the increase in government spending would boost household incomes, which would increase aggregate demand and bring the economy closer to its full potential. That is why governments tend to run large deficits during recessions and why there are many counter cyclical programs like food stamps that ramp
up as the economy weakens. However, at present, the US economy is operating close to full capacity. The unemployment rate is almost the best in ten years, wages are rising faster than they have in years, and inflation, while still low, is clearly picking up. That said, GDP growth remains anemic at just 2%. Wouldn’t more stimulus boost GDP? Probably not. At this point in the cycle, more stimulus would not create much more output. Rather, it would primarily create wage inflation, as too many firms looking to grow would chase too few workers, and, in the process, drive up wage growth and inflation, since firms would attempt to pass their higher costs of production to buyers. To avoid this destructive inflationary spiral, the Fed would raise interest rates. The rise in rates would depress private investment, which would allow for non-inflationary increased public investment. However, it should now be obvious that the cost of the increased public investment is the
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reduction in private sector investment. Thus, the opportunity cost of the public investment is not the very low interest rate paid on government bonds; it is, rather, the loss of productivity of the private investment that would never be built, such as a new factory or warehouse. And the productivity of that private investment is certainly higher than the interest rate on government bonds! The only case, at present, for deliberately overheating the US economy is if you believe more stimulus can undo some of the long run damage sustained by the economy during the Great Recession. The idea is that by artificially and temporarily pushing the unemployment rate way down, some discouraged workers might be enticed back into the labor force. Similarly, as firms find it harder to hire enough new workers, firms might offer existing workers more hours or convert part-time positions into permanent ones. Firms might even boost labor productivity by
investing in workforce training or new equipment. While weak GDP growth is a problem, simply running large deficits to stimulate the economy because interest rates are low is unwise given how low the unemployment rate already is. That said, there is a strong argument to be made for a short-term increase in the deficit designed to bring previously discouraged workers who left during the Great Recession and have yet to return. Lastly, rather than a simple tax cut, if deficit spending is carefully targeted to public investment that boosts the productive capacity of the economy, it would bring long lasting benefits to the economy that we would enjoy for decades -- not just today. Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.
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2017 Issue 2
RALLY 20 DAY 17 Builders Outlook Special Section
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Builders Outlook
Inside:
A guide to the legislative issues that were brought to the table by the Texas Associationof Builders and your local EPAB Members.
thank you to our dinner hosts: Morrison Supply; HUB International; Passage Supply
Top picture. Group with Representative Joe Moody. Edmundo Dena; inside Rep. Blanco office; Randy Bowling holds up #1 HOMEPAC Award Bottom right Meeting with Rep. Lina Ortega
2017 Issue 2
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Builders Outlook
2017 Issue 2
Lending Institutions surveyed about mortgage rates
Results from a survey administered by the Federal Housing Finance Agency (FHFA) indicate that mortgage rates rose in January 2017*. Over the month, contract rates on mortgages used to purchase single-family newly constructed homes increased by 24 basis points to 4.02 percent. Although the monthly change reported by FHFA contrasted with a report by Freddie Mac, the results of the two surveys largely move in tandem with each other. The fourth quarter iteration of Fannie Mae’s Mortgage Lender Sentiment Survey found that over the next 3 months, the first quarter of 2017, a small percentage of lenders expect demand for GSE-eligible mortgages to purchase a home to “go down”, partly in response to higher rates**. However, the result across all respondents masks differences by lender size. On net, large and mid-sized institutions expect demand for GSE-eligible mortgages for a home purchase to decline while smaller institutions expect demand to “go up” over the first quarter***. The net percentage is the difference between the percentage of originators that believe demand will go up and the share expecting that demand will go down. The Mortgage Lender Sentiment Survey follows up with those respondents that expect demand to fall in the first quarter with a question about the reason underlying this belief One-half or more of large institutions and mid-sized institutions believe demand will go down because mortgage rates are not favorable, the most cited reason. In contrast, 30 percent of small institutions hold the same expectation, equal to the percent of small institutions that have inventory and broader economic concerns.Despite higher rates, new home
sales contracts rose by 3.7 percent in January following a soft December reading. Also, sales of existing homes, both singlefamily and condos/co-ops, increased by 3.3 percent in January, reaching the fastest pace since February 2007. However, the National Association of Realtors’ Pending Home Sales Index (PHSI), a forwardlooking indicator based on signed contracts of existing homes, fell by 2.8 percent in January to its lowest level in a year. Results from the PHSI suggest some softness in sales of existing homes over the next month or two. To conduct this survey, FHFA asks a sample of mortgage lenders to report the
terms and conditions on all single-family, fully amortized, purchase-money, nonfarm loans that they close during the last five business days of the month. The survey excludes FHA-insured and VA-guaranteed loans, multifamily loans, mobile home loans, and loans created by refinancing another mortgage. Specifically, the question is “Over the next three months, apart from normal seasonal variation, do you expect your firm’s consumer demand for single-family purchase mortgages to go up, go down, or stay the same?” Emphasis included by the survey. Larger Institutions – Fannie Mae’s
customers whose 2015 total industry loan origination volume was in the top 15% (above $631 million). Mid-sized Institutions – Fannie Mae’s customers whose 2015 total industry loan origination volume was in the next 20% (16%- 35%) (between $176 million to $631 million). Smaller Institutions Fannie Mae’s customers whose 2015 total industry loan origination volume was in the bottom 65% (less than $176 million).
2017 Issue 2
Trump to NAHB Chairman: ‘
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Builders Outlook
We’re Going to Make Home Building Great Again’
NAHB Chairman Granger MacDonald had an important message for President Trump on Tuesday. And Trump had a very positive message for home builders. MacDonald, who was in Washington, D.C. for the week to attend meetings on Capitol Hill, had just been invited to the White House to attend a ceremony in which Trump would sign an executive order directing the Environmental Protection Agency and the U.S. Army Corps of Engineers to begin rolling back the controversial “waters of the United States” Vice President Mike Pence (left) extends rule. a friendly hand to Granger MacDonald. “I looked right at him and I said, ‘When you talked to our board in August, you conversation with EPA Administrator Scott promised that you would fix this. On behalf Pruitt. “It was a good, long visit,” of our 140,000 members, thank you.’ And MacDonald said, in which he emphasized he said to me, ‘I bet you thought it would be builders’ respect for the environment, but at the end of four years and not right away, also the need for cost-effective, commonright? We’re going to make home building sense regulation that does not hurt small great again.'” businesses or curb economic growth. MacDonald is glad he spoke up. “When These conversations, even brief ones, you only get five or 10 seconds to say speak to the value of NAHB membership, something, when you see the opportunity, MacDonald said. “When the president says you’ve got to run at it as straight as you he’s going to make home building great can,” he said. again, that’s important. The ceremony also gave MacDonald an “We are at the White House within the opportunity to talk to Vice President Mike first 40 days of this administration,” he Pence, who as governor of Indiana had pointed out. “Whether our members support productive relationships with members of Trump or not, we are right in the middle of the Indiana Builders Association. “The vice it, where we need to be. You are either at president is a very common-sense the table or being served on the menu. We individual, and he is definitely a friend of are at the table.” home building,” MacDonald said. While the group waited for the president to arrive, MacDonald struck up a
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Builders Outlook 2017 Issue 2
EPAB Membership Builder members as of March 1, 2017
AT Architectural Designs Elsa Taracena Accent Homes Mark Dyer/Raul Chavez Bain Construction Scott Bain Bella Homes Leti Navarrete Bella Vista Custom Homes, Inc. Edgar Garcia BIC Homes Antonio Cervantes Carefree Homes Richard Aguilar Casas De Leon, LLC Nick Bombach Classic American Homes Priscilla Hernandez Crown Heritage Homes Lydia Mlouhi Cullers & Caldwell Builders John Cullers Cullers Homes Jason R. Cullers Custom Dream Homes Leti & Javier Navarrete D. R. Horton Homes Jaime Gonzalez Dawco Home Builders Walter O. Lujan Deal-2-Deal Homes dba Deal-2-Deal,LLC Delton Deal Del Rio Engineering, Inc. Sal Masoud Diamond Homes, LLC Valerie Baquera Donald Ward Builder, Inc. Donald Ward E. Valencia Land Development LLC Eddie Valencia Edward's Homes, Inc. Eduardo Fernandez EPT Land Communities David Bogas Everest Homes Edmundo Dena, Jr. Fortune Custom Homes Javier Andrade Gaddy Construction Charles Gaddy GMF Custom Homes, LP Frank Torres Guel Construction Rudy Guel Hakes Brothers LLC Chris Hakes Hanson Asset Management, LP Russell Hanson Homes by Design Leslie Driggers Hoard Hunt Communities, LLC Kathy Parry Icon Custom Home Builder, LLC. Carlos Garcia Industrial Realty Group Incorporated Brent D. Harris JER Custom Homes, LLC Jorge E. Rodriguez Kayton Lee Residential, Inc. Brianna Barnes LMJ Construction Co., LLC Mike Lopez Loyalty Homes Gustavo Loy M A Builders & Design, LLC Mustafa Ali Metro Homes, Inc. Fernando Torres, Judith Arrunada, Millennium Homes Dan Ruth New Horizon Builders Georgiana Garcia Pacifica Homes, Inc. Juan Jose Vasquez Palace Homes, Inc. Robert Diaz
Thankyou to the following builder and associate member for renewing your 2017 EPAB Membership. Rememebr to please do buinsess with fellow members. Palo Verde Homes Edgar Montiel Pointe Homes Carlos Villalobos Porter Homes Albert Porter R.C. Baeza & Associates Robert C. Baeza R.E. Welch Contractor Gordon Welch Rassette Homes, Inc. Donald Rassette Santana Custom Homes Fernando Santana Southwest Land Development Serv. Doug Schwartz The Heritage Group David Bingham Trejo Construction Co. Juan Trejo Tropicana Building Corp. Bobby Bowling IV Tropicana Development Greg Bowling Tropicana Homes Randy Bowling Tropicana Properties Demetrio Jimenez Villagi Homes, LLC Kristi Eddings Will Harvey Development Will S. Harvey Winton/Flair Homes Herschel Stringfield
Associate Members as of March 1, 2017
84 Lumber Ernie Chavez ABC Supply Co., Inc. Larry Eck Acme Brick Company Vanessa Rocha; Steve Bush Adams Moulding & Lumber Tom Swahlen Area Iron & Steel Works, Inc. Fred L. Edmonston Jr. Atrium Homes Ricardo Bocardo Jr. Bank of Texas Ray Owen Barnett & Bennett Construction Ben Trzyna Baron Supply David Trammell Barragan & Associates Benito Barragan Beasley, Mitchell & Co., LLP Brad Beasley BMC Select Jaeson Iovinella Boise Cascade Mike Flores Bonded Builders Home Warranty Grp. Bill Deal Border Solar Javier Ruiz Builders Source Appliance Gallery Kathy Rose, Sandra Lucero C. D. Lee/Britton Insurance & Bonding Anthony Landavazo; Lisa Daniels Cabinet Masters Mike Robles Capital Bank, SSB David Ortwein Cardel Design Group Lorraine Huit Casa Ford & Casa Nissan Luke Lowenfield CEA Engineering Group Jorge L. Azcarate Central Texas Metal Roofing Supply Co.,Inc. Ben Garza, III Chaparral Materials, Inc. Kevin Fortin City Bank Texas Bob Kotarski City Lights
Thomas Brown Cognent, Inc. Martin Paredes Conde, Inc. Conrad Conde CQC Testing and Engineering, LLC Jaime Rojas Dal-Tile Joseph Cepeda Demcon Disposal Management, LLC Aby Escorza Dempsey, Cooper & Lane, LLC Richard T. Dempsey Dorney Security John Dorney DWS Building Supply Sabrina Voorhies E.F. Building Materials, Inc. Efren Fraire Eagle Roofing Products Scott Aguilar El Paso Building Materials Ken Wade El Paso Disposal Irma Parsons El Paso Mortgage Bankers Association Randi Cabrera El Paso Times Jose Molina El Paso Truss Luis Mendiola El Paso Winnelson Rene Goldfien Ferguson Enterprises Inc. Albert Holguin First Light Federal Credit Union Lorenzo Revelez Firth, Johnston, Bunn & Kerr Jay Kerr Foxworth Galbraith Lumber Bret Thompson Franklin Building Materials Ricardo Aguilar; Cristina Sheldon GCC Sun City Materials, LLC Victor Tito Marquez GECU- Greater El Paso Credit Union Brenda Aguirre GEPAR-Greater El Paso Assoc. of Realtors Sharron Ramirez Hardware Specialties Jeff R. Paxton Harris Real Estate Group Lane Harris Haskins Electric Charles B. Haskins, Jr. Home of Texas Mark Smiley Home Performance Testing Fernando Garcia/Ray Gonzales HUB International Luis Rosas Interceramic Tile & Stone Gallery David Holguin J & H Concrete & Post Tension Jorge Herrera James L. Ellis, CPA, PC Jim Ellis Jobe Materials, LP Charlie Tellez Joe Bernal Insurance & Financial Services, Inc. Joe M. Bernal L & P Building Supply Denise McConnell Legacy Real Estate Services /TTi Prop. Management. Patrick Tuttle Lone Star Title Co. of El Paso Sam Trimble Love Engineering, Inc. Montez Love Majestic Realtors Patti Musshorn MAK Roofing & Construction Felix Vizarreta Masco Contract Services dba Gale Insulation Tom Harmon McCoy's Building Supplies
Jorge Martinez Mechanical Technologies Jaime Zubiate Morrison Supply Sam Shallenberger MTI Ready Mix, Inc. Tony Mullen Neeuhome.com LLC Walter Pichardo New Era Foam George Tollen Passage Supply John Chaney Patriot Mortgage Randy Bowling Pella Windows Jason Bates Performance Glass & Aluminum Hector Hernandez Pioneer Bank Kathy Carrillo Powerfoam Insulation: Metlspan NCI Group, Inc. Arnie Pederson Randall Smith, CPA Randall Smith Real Estate Weekly Newspaper Riley Stephens Rebath of El Paso/Las Cruces Lisa Walling Remcon Self Storage Joan Swahlen Richman Group Affordable Housing Corp. Kevin Hoffman Rocky Mountain Mortgage Company Dean Inniss Roe, Brad Bradley Roe Sarabias Blue Sanitation Monica Brown Senercon Javier Ruiz Sherwin Williams Paint Cruz Lopez Sierra Title Company/Lawyers Title Chris Morales; Angelique Roman Simpson Strong-Tie Company, Inc. Ken Donham Snappy Publishing, LLC Ted Escobedo Solar Smart Living Larry Perea Southwest DĂŠcor El Paso Corporation Chris Matthews Spectrum Technologies Miled Daou Stewart Title of El Paso Cindy Bilbe StrucSure Home Warranty Scott Whisenant Su Casa Magazine Bob Skolnick Sun City Winnelson Dean Moore Texas Gas Services Mica Short Texas Title Company Steve Raney TFCU Yolie Melendez-Estrada The Dorian Group/Ocean Gallery USA Miguel Angel Mercado TRE & Associates Linda Troncoso Trim Team Juan & Kris Hernandez USA General Contractors Javier Olmos Vision Consultants, Inc. Kelly Sorenson WestStar Home Loans Sandy Matyi WestStar Bank David Osborn WestStar Title Janette Coon
2017 Issue 2
Association News & Events
13
Builders Outlook
If you have an event or meeting that you would like to share with EPAB members, please submit your information to: margaret1@elpasobuilders.com Connect to the El Paso Association of Builders: www.elpasobuilders.com
UPCOMING EVENTS
MARCH 8 BOARD MEETING 12 NOON EPAB OFFICE
MARCH 10-12 HOME & GARDEN SHOW CONVENTION CENTER MARCH 23 WASHER TOURNAMENT EPAB OFFICE
APRIL 12 BOARD MEETING 11:00 GENERAL MEETING 12:00 MARRIOTT HOTEL APRIL 19 GOLF TORNAMENT VISTA HILLS COUNTRY CLUB
NEW MEMBERS KAYTON LEE RESIDENTIAL, INC. CONTACT: BRIANNA BARNES 10921 PELLICANO DR., STE. #108 EL PASO, TEXAS 79935 915-730-4747
BARNETT & BENNETT CONSTRUCTION CONTACT: BEN TRZYNA 1007 GALLOWAY DRIVE EL PASO, TEXAS 79902 915-543-9300
POWERFOAM INSULATION CONTACT: ARNIE PEDERSEN 550 MURRAY STREET MIDLOTHIAN, TX 76065 972-299-5556 DAL-TILE CONTACT: JOSEPH CEPEDA 11185 PELLICANO DR. EL PASO, TEXAS 79935 915-443-5479
Congratulations on your 70th Anniversary. We were here when you started back in
ACME BRICK CO. 325 N. Americas Ave. El Paso, Texas 79907 915-859-9171 Brick * Stone * Pavers * Granite * Slate * Flooring * Glass Block
A Saturday closing for the Millers led to four successful sales for their agent the next month.
SODA SPONSOR DEAL 2 DEAL HOMES
Like all families, the Millers had a hectic schedule. So after Maria helped them find the perfect home, she knew they needed a title company that would make the closing easy for her clients. So she tur ned to her trusted title pr ovider Stewart T itle Company. For 10 years we’ve been meeting the needs of busy families with S t day Satur d closings l i – and d some old fashioned entertainment for kids like little Iris.
Open Saturdays 9:00 am to 1:00 pm.
Downtown 415 N. Mesa Street Eastside 2244 Trawood d Drive, Suite 101 Westside 5500 N. Desert, ert, Suite A-2 Northeast 4712 Woodro ow Bean, Suite D New Gateway ay location opening Marrch 2017
915 -225 - 8200 00 stewart.com/el-paso m/el-paso
14
Builders Outlook
Expert Advice
Fiduciary Considerations: Why should Plan Fiduciaries consider using an adviser?
Editor’s note. The El Paso Association of Builders has put in place a retirement program we call “Blue Print�. Our partnership with Bukaty Companies Financial Services and Ruth Rivera will be presenting articles of interest in the topic of retirement on a regular basis. In addition Ms. Rivera will be visiting members to discuss your particular needs. To participate in the Program requires membership in the El Paso Association of Builders.
Economics is the study of the allocation of scarce resources. Businesses are naturally constrained by time and money. Advice, implicitly, cost money. We live in a world where there is an abundance of doit-yourself solutions ranging from home repairs to Legal Zoom. So a business that spends money on advice necessarily has less money for other capital expenditures. In the case of Plan level advice, what are the potential cost savings that a Fiduciary might want to consider if any? The following is a short list of considerations for the Plan’s Fiduciaries: 1. Help Reduce Fiduciary Liability: ERISA requires the Fiduciary of the defined contribution retirement plan (Trustee or Fiduciary) to be a
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2017 Issue 2
“prudent expert “and to use the “care, skill, prudence and diligence� that someone “familiar with such matters� would act, or if not possessing such expertise, to hire someone that does possess such skill and can act in such and expert manner. So, ERISA presumes that plan fiduciaries possess an uncommon level of expertise or to at least find and hire someone with that skill-set. This is not optional, it is an ERISA mandate.
2. Leverage Industry knowledge: There are many investment and record keeping options available to defined contribution plans. An experienced adviser with extensive experience, can assist the Trustee or Fiduciary in evaluation the various options, establishing the selection criteria, and choosing the platform.
3. Investment monitoring: A prudent investment Fiduciary would not ignore the performance of an investment once it has been selected. With the assistance of an adviser the Trustee or Fiduciary should establish an Investment Policy Statement that includes provision for monitoring
the investment performance of the various mutual funds. Inevitably, some mutual funds will need to be replaced due to poor performance or other reasons such as a change in the mutual fund manager. The astute adviser will be proactive in such matters. The level of advice can be that of the 3(21) or 3(38) co-Fiduciary. 4. Investment Co-Fiduciary: Investment co-Fiduciaries necessarily handle money on behalf of the Plan participants. The legal exposure to Plan Fiduciaries is immense. A 3(21) investment co-Fiduciary status with an advisor will mitigate that risk. Fiduciaries re personally liable for the operation of the Plan
5. Increase Employee Engagement: The whole purpose of a Plan is for the employees to finally retire with dignity. An experienced independent adviser will have the knowledge, communication skills, and collateral material necessary to help employees better understand their investments and asset allocation in order to drive a successful retirement outcome. Successful outcomes should be measured and approximate of income replacement rate of 80%.
Builders Outlook
2017 Issue 2
6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038
■ExECuTiVE OFFiCERS PRESiDENT Don Rassette ViCE PRESiDENT Edmundo Dena SECRETARY/TREASuRER Sergio Cuartas ASSOCiATES ViCE PRESiDENT Sam Shallenberger ExECuTiVE ViCE PRESiDENT Ray Adauto PAST PRESiDENT Carlos Villalobos
■TAB STATE DiRECTORS Randy Bowling - Life Director Sam Shallenberger Edmundo Dena
Honorary Life Members Mark Dyer Wayne Grinnell Don Henderson Anna Gill Brad Roe Rudy Guel
Finance Committee Kathy Carrillo Henry Tinajero
■ADViSORY TO THE BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr
■BOARD OF DiRECTORS Antonio Cervantes BiC Homes Bret Thompson Foxworth Galbraith Fernando Torres Metro Homes Henry Tinajero West Star Bank Jay Kerr Firth, Johnston,Bunn & Kerr Joe Bernal Employer Benefits Ep John Chaney Passage Supply John Dorney Dorney Security Kathy Carrillo Pioneer Bank Kathy Parry Hunt Companies Leti Navarette Bella Homes/Custom Dream Linda Troncoso TRE & Associates Leslie Driggers-Hoard Homes By Design Robert Foster Southwest Land Dev. Services Walter Lujan Dawco Builders Edgar Garcia Bella Vista Custom Homes Jason Cullers Cullers Homes Samira Gonzaelz icon Custom Homes Sal Masoud DRE Development Ted Escobedo Snappy Publishing Patrick Tuttle Legacy Real Estate Services Sam Trimble Lone Star Title Luis Rosas Hub international Delton Deal Deal -2-Deal Homes J. J. Vasquez Pacifica Homes
 
 
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915-208-9313 800-853-3996
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Informació Hipotecas
Past Presidents Committed to Serve Edmundo Dena Edgar Montiel Frank Torres Frank Arroyos Greg Bowling Randy Bowling Bobby Bowling iv Doug Schwartz John Cullers Robert Baeza Mark Dyer Kelly Sorenson Rudy Guel Brad Roe Herschel Stringfield Bob Bowling iii 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. © 2017 Builder’s Outlook is published and distributed for the El Paso Association of Builders by Ted Escobedo, Snappy Publishing, LLC ted@snappypublishing.com El Paso • Texas • 915-820-2800
2016 Builder Member Of The Year Carlos Villalobos Pointe Homes  
772-7495
â– NATiONAL DiRECTORS Bobby Bowling, iV Demetrio Jimenez Leslie Driggers Hoard -Alternate Antonio Cervantes - Alternate
â– COMMiTTEE CHAiRS Membership Ted Escobedo Patrick Tuttle
 
El Paso Disposal
Baeza
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