Builders Outlook 2017 Issue9

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EL PASO

National, State & Local Building Industry News 2017: Issue 9

BUILDERS A S S O C I AT I O N O F

Harvey will hammer Texas' already stretched building industry By Steve Brown, Real Estate Editor DALLAS NEWS

Texas' already tight housing market is going to feel a bigger pinch as a result of Hurricane Harvey. The damage from the storm will add to shortages of labor and push up prices on building materials as Gulf Coast communities recover. Thousands of homes and apartments were either destroyed or damaged as Harvey moved inland near Corpus Christi, then followed the coast north to the Houston area. Before the storm, Texas' was the country's largest homebuilding market. Now builders and construction workers who were already struggling to keep up with the state's demand for new housing are going to face the challenge of replacing and repairing what Harvey wrecked. "The homebuilders, remodelers and construction people are going to be busy for the next two years," said Dr. James Gaines, chief economist with the Real Estate Center at Texas A&M University. "There was not very much extra capacity in the construction market, and now there will be higher strain to repair and replace what got damaged." Even Texas cities that suffered no storm damage, including Dallas, could see a shortage of building-sector workers as people head south to deal with the damage.

Study Finds Green Home Building Continues to Gain Traction

One third of builders surveyed say green building is a significant share of overall activity, and many have built a net zero home. Green construction is rapidly gaining traction among both single family and multifamily home builders, according to new research published in the Green Multifamily and Single Family Homes 2017 SmartMarket Brief. The report is available for free download at www.nahb.org/SMR.

"I'm glad this didn't happen a year ago when my house was being built," Gaines said.Ted Wilson, a housing analyst with Dallas-based Residential Strategies, said there is already "a lot of chatter" in the building industry about what Harvey will do to construction labor and materials demands. "Obviously it's going to be a big problem," Wilson said. "Once the water goes down, the amount of work that has to be done will put a huge strain on the Houston housing market. "It will put a huge strain on the industry." Don't expect immigrants After previous Texas hurricanes, laborers from Mexico and Latin America have helped with cleanup. But don't expect that to happen with Harvey, Wilson said. "With the ramping up of border security and the fact the Mexican economy is better, we haven't seen people coming across like we have in the past," he said. Wilson also expects a spike in prices for construction materials, including drywall, plywood and roofing because of Harvey. Such increases are common after natural disasters and may linger for months. "In the short run, building material prices locally will increase due to supply bottlenecks," said Robert Dietz, chief economist with the National Association

The latest in a series of studies conducted by Dodge Data & Analytics in partnership with the National Association of Home Builders (NAHB), the study shows that green homes are continuing to gain market share. At least one third of single family and multifamily builders who were surveyed said that green building is a significant portion of their overall activity (more than 60 percent of their portfolio). By 2022, this number should increase to nearly one half in both the single family and multifamily sectors. Within this group, nearly 30 percent of multifamily builders fall into the category of “dedicated” green builders (more than 90 percent of their portfolio). On the single family side, the percentage of “dedicated” green builders is nearly 20 percent, but that share is expected to grow sizably by 2022. “These findings show that green building has become an established part of the residential construction landscape,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “It is no longer a niche business; our members recognize the value of building green and are incorporating these elements into their standard business practices.” Increasing energy efficiency continues to be the most common method of improving the performance of a green home, followed by creating a healthy indoor living environment.

of Home Builders. "However, the primary effect of an event like this is delays for construction activity. "We are already seeing delays in large markets, like those in Texas, due to labor scarcity and increases in lumber prices due to the imposition of tariffs on Canadian softwood lumber. The storm will make these bottlenecks worse in the areas affected, and we will see some decline in home production volume during the cleanup period." 4 percent Dietz said the industry impact from the storm will be significant. "The affected areas are a significant share of new construction nationwide," he

said. "The counties in the state disaster area represent approximately 4 percent of nationwide single-family construction and 32 percent of Texas new home construction." Texas homebuilders were already fighting one of the worst labor shortages on record. Now the demand for workers to rebuild after Harvey will create more shortages. "I anticipate it to impact not only Houston's housing market, but the entire state of Texas," said Paige Shipp of housing analyst Metrostudy. "This is yet another layer of complexity to an industry wrought with problems."

“As consumers become more familiar with the impact that their homes can have on their health and well-being, we wouldn’t be surprised to see the influence of this factor continue to grow,” said Steve Jones, Dodge’s Senior Director of Industry Insights Research. “Homes are following the larger trend that Dodge has been tracking across commercial and institutional sectors for healthier buildings to become an increasingly important part of being sustainable.” The report also found that a considerable number of builders are developing net zero homes or plan to build net zero homes in the near future. Among those surveyed, 29 percent of single family home builders have built a net zero home in the past two years, and 44 percent expect to do so in the next two years. Builders see increased customer demand and a competitive advantage as the top two drivers to develop net zero homes. Another reason for the rise in net zero homes is the increasing use of renewable technologies, especially solar photovoltaic panels. In two years, the percentage of builders who used these panels increased from 19 to 23 percent. Nearly half (43 percent) of the builders surveyed expect to use this technology in the future. Other SmartMarket findings suggest the single family green home market is maturing. For one, the report found that

home builders are less concerned about higher start-up costs than in previous studies. There was also a decline among people who think consumers will not pay additional costs for green building. Finally, between one half and two thirds of respondents say seven different drivers are pushing them to build green, instead of one or two drivers as in the past. In fact, these top drivers, selected by between 64 and 57 percent of single family builders, include customer demand; greater availability and affordability of green products; the prospect of producing a higher quality home; appraisers recognizing greater value in green homes; government or utility incentives; and changes in codes, ordinances and regulations. Multifamily builders see government or utility incentives; customer demand; and changes in codes, ordinances, and regulations as the top drivers for future green building activity. With respect to green building obstacles, multifamily builders are most concerned about the costs associated with green; higher startup costs; and the unwillingness of consumers to pay more for green construction. Single family builders agree about the challenge of consumers not being willing to pay, the top obstacle for them. -NAHB


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Builders Outlook

HEAT UP YOUR HOME SALES. Football season is here. It’s time to fire up the grill, mix the marinade and enjoy an evening on the patio cheering on your favorite team with friends and family. Natural gas can help. From grills and fire pits to lights and torches, building outdoor living spaces equipped with safe, clean and efficient natural gas gives your customers a chance to enjoy the big game from the comfort of home. For more information: ElPasoNewBusiness@TXGas.com William Nieves: 915-496-6126 Jorge Sejera: 915-680-7216 Please continue to direct service line and meter set requests to the Texas Gas Service Builder Hotline at slimgas-metroElPaso@onegas.com or 1-866-206-9587.

2017 Issue 9


2017 Issue 9

President’s Message

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Builders Outlook Don Rassette

President, El Paso Association of Builders

Home building just got a little tougher, but there is some good news too

Earlier this year I wrote on how “easy” it is to build houses, and then listed several of the speed bumps and problems to this statement which included lot shortages, restricted financing, labor shortages and material delays to name a few. Now with the latest natural disasters; such as Harvey, Irma and Maria, plus the recent fires in the northwest and west, earthquakes in Mexico, our construction industry’s ‘ease’ of building problems will only increase. Our supplier’s warehouses and factories may be flooded or have caught on fire. Workers in these warehouses/factories may not be able to get to work due to living, warehouse/factory and road conditions. This means we will see a longer delivery time and increase in cost as these supplier’s work to rebuild. At the same time as many cities are working to re-build homes, business and infrastructure many skilled labors from around the country and from here in El Paso, will move for the offer

of better paying and more consistent work. In addition, are you aware that the average age of a skilled construction worker, across the country, is more than 50 years old? With this being the average age, our industry is slowly losing skilled trades and workers. These trades are not being filled by younger workers, which only compounds to the difficulty of finding skilled labor. The U.S. unemployment rate is near its lowest level in 16 years, so those who want a job can get a job. So be prepared that certain trades, subcontractors and suppliers will have problems getting workers and materials and there will be delays with deliveries of the materials and supplies that are needed on jobsites everywhere. This will lead to longer cycle times and we all know the sayings “that time is money” or “time is of the essence.” Some good news: through cooperation and lobbying by TAB, Governor Greg Abbott has declared October 2017, as “Careers in

Construction Month.” This recognizes and brings more attention to the need to grow the construction workforce to meet the housing needs of Texas. Additionally, at our August board meeting, I mentioned how well TAB did this year in the legislative session and briefly touched on the $2,000.00 Energy Efficient New Homes Tax Credit. The U.S. Department of Energy approved this Tax Credit on June 26, 2017. Please do your own due diligence and verification, but here in a nutshell are the eligibility requirements: • Single family and multi-family homes up to 3 stories, • Units must be 50% above the 2006 IECC, • Raters must use DOE approved software to generate the energy savings calculations, • Homes must be inspected and certified by a certified HERS Rater, • Tax credits are retroactive for up to 3 years. Here again is the strength of our associations, working and adding

another possible savings for our industry. I was remiss in mentioning last time, that September was NAHB’s Associate Member Appreciation Month. Across the country, about twothirds of the total membership comes from associate members. Locally, our numbers are very similar. So, to the Associate Members of EPAB, THANK YOU FOR MAKING OUR ASSOCIATION BIGGER AND BETTER! We are in the last quarter of this calendar year and I would like every member to look at what they do for EPAB. That’s right what do you do for our association? I encourage you to get involved or be more involved for 2018. It’s easy to be a cruiser, rather than a carrier. In closing, BE PREPARE TO SUCCEED!


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Executive’s Message Ray Adauto, Executive Vice President EPAB

The Association enjoyed a very good el Paseo de Casas, what we dubbed “an affordable showcase”. While we had success with the presentation and the activities associated with the Paseo some in the community couldn’t believe that our homes were priced from the mid $160’s to $220’s. “Gasp, what do you mean affordable?” some asked. Well the answers are relatively simple as the price of new homes is no longer in the

Hurricane Harvey: Rebuilding with Confidence

The members of the Greater Houston Builders Association (GHBA) want to express their heartfelt sympathies to anyone affected by the devastation of Hurricane Harvey that hit the Texas Gulf Coast. The professional building and remodeling community stands ready to assist our neighbors as we work to rebuild the homes and communities that have been destroyed or damaged. GHBA is the voice of Houston’s residential construction and remodeling industry. Through advocacy and education, we aim to enhance the business climate for members, and to provide quality obtainable housing to the community. GHBA members are a consortium of Houston’s top building industry professionals.

Association showcases affodablity Builders Outlook

$60,000 or even $100,000 range. No, those days are gone and surprise, it’s going to get even more expensive as goods, land, and labor costs go up. Land costs are going up as the cost of development and the all the new codes and things like lumber, nails, paint and things needed to build a home. On the day I wrote this our member builders were selecting lots far out Montana nearer and nearer to Hueco Tanks. You read right, Hueco Tanks. A lot of what is happening is that there is no more “cheap” land like a few years ago and that translates to higher costs. Let me give you a simple accounting of what a house will be priced at. If the land were to cost $5 then the completed house should be priced

at between $25 and $30. The simple rule is that a finished house is four to six times the cost of the lot. So, it’s not farfetched to see if a lot is sold to the builder for $50,000 then the finished house should run somewhere in the $250 to $300,000 range. A lot depends on what goes into the home, but it’s still a good guesstimate. So affordable doesn’t mean YOU can afford it, but rather that it is affordable for the marketplace. If a builder misprices the home that builder will either go broke or be out of business rather quickly. Again, the key is what the price of land is going for. I’d like to take time to thank some of our members for some work done on the EPAB building. Rudy Guel once again came to

2017 Issue 9

our rescue to reseal the front door as it was looking worn and dry. He also cleaned up some of the cracked paint on the sidewalk and replaced some stones that had come off. Thank you, Rudy Guel Construction. Our reception for the Mayor and council went rather well on September 20. We had Chef Ruli’s cater and 915 Bartending serve the drinks. Thanks to our members who came and heard the Mayor. Get ready to hear State Rep Joe Pickett at our membership meeting on THURSDAY, October 12. El Paso Club. Please mark the date change and place.


National Builder News

2017 Issue 9

Builders Outlook

NAHB Chairman Granger MacDonald on GOP Tax Plan

n Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas, today issued the following statement on the tax plan put forth by the White House and GOP congressional leaders: “NAHB commends President Trump and Congress for making the vital issue of tax reform a top priority. During the past several months, we have conveyed our views and concerns to policymakers and we firmly believe that the plan unveiled today represents a positive step in the right direction. “By lowering the pass-through rate, the plan will reduce the tax bill of thousands of small businesses and help to spur job and economic growth. More importantly, the blueprint maintains the Low Income Housing Tax Credit, the most indispensable tool to help produce affordable rental housing. The plan also retains a business interest deduction for small businesses, which would ensure that our future tax code is truly progrowth. “On an issue of such significance, we recognize difficult trade-offs must be made. Although the mortgage interest deduction remains untouched, its effectiveness could be diminished as more families elect to take a higher standard deduction. As the process advances, NAHB looks forward to working with policymakers to mitigate any detrimental effects that this development could have on the housing market. In addition, we will also seek to ensure that tax relief efforts put more money into the pockets of hard-working families and that affordable homeownership and rental housing opportunities remain an accessible goal.”

New Home Sales Fall 3.4 Percent

n Sales of newly built, single-family homes in August fell 3.4 percent to a seasonally adjusted annual rate of 560,000 units from an upwardly revised July reading, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This was the lowest sales reading since December 2016. However, year-to-date, new home sales are 7.5 percent above their level over the same period last year. “This month’s report is another reminder that builders need to manage rising supply-side costs to meet consumer demand for affordably priced homes,” said Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas. “The year-to-date growth shows that new home sales are continuing to make consistent, long-term gains,” said NAHB Chief Economist Robert Dietz. “However, we may see more volatility in the next few months as communities affected by the recent hurricanes experience construction delays and other economic disruptions.” The inventory of new homes for sale was 284,000 in August, which is a 6.1month supply at the current sales pace. Regionally, new home sales remained unchanged in the Midwest. Sales fell 2.6 percent in the Northeast, 2.7 percent in the West and 4.7 percent in the South.

Builder Confidence Drops Three Points As Hurricanes Add Uncertainty

n Builder confidence in the market for newly-built single-family homes fell three points to a level of 64 in September from a downwardly revised August reading of 67 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). “The recent hurricanes have intensified our members’ concerns about the

availability of labor and the cost of building materials,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “Once the rebuilding process is underway, I expect builder confidence will return to the high levels we saw this spring.” “Despite this month’s drop, builder confidence is still on very firm ground,” said NAHB Chief Economist Robert Dietz. “With ongoing job creation, economic growth and rising consumer confidence, we should see the housing market continue to recover at a gradual, steady pace throughout the rest of the year.” Derived from a monthly survey that NAHB has been conducting for 30 years,

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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 posted losses in September but remain at healthy levels. The component gauging current sales conditions fell four points to 70 and the index charting sales expectations in the next six months dropped four points to 74. Meanwhile, the component measuring buyer traffic slipped a single point to 47. Looking at the three-month moving averages for regional HMI scores, the West increased three points to 77 and the Northeast rose one point to 49. The South dropped a single point to 66 and the Midwest fell three points to 63.


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Builders Outlook

Issue 9

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2017 Issue 9

Economic Forescast

After failing to repeal or replace Obamacare,

Elliot Eisenberg Economic & Policy Blog

Republicans are now focused on tax reform, a seemingly much easier task. Distance, however, is tax reform’s best friend. Proposals that look great in theory are routinely derailed by details. And, that is why there has been no significant tax reform since 1986. Moreover, passing tax reform has historically required a bipartisan coalition to withstand the many opposition groups that intensively lobby to protect their deductions. Moreover, it will be inordinately difficult for Republicans to pass revenueneutral tax reform on a partisan basis with a slim two-vote majority in the Senate and with a president with an approval rating in the upper-thirties. Thus, expect -- a small tax cut, but no structural tax changes. Republicans generally agree that individuals should not be able to deduct state and local income taxes from their federal taxes. The problem is that if Congressional Republicans attack this deduction, they will incur

Tax Reform is Out, Tax Cuts are Possible Builders Outlook

the wrath of dozens of interest groups, as well as court the potential loss of Republican seats in high tax states such as California, New Jersey, and New York. Simply put, a partisan Republican effort that raises taxes is politically next to impossible. This is why the border tax adjustment - which was a very good idea - was withdrawn even though it would have raised $1 trillion over the next decade from importers. The intense political pushback from large retailers and others was simply too much. For this same reason, the mortgage interest deduction and charitable deduction are already off limits. Reducing corporate taxes is an idea that has broad support across the political spectrum since many USheadquartered firms have already “moved” to Europe to escape high US corporate taxes. The problem is that financing the lower tax rate requires eliminating corporate deductions for, among other things, investment, and doing that would have perverse effects. It would raise the cost of new investment and thus reduce economic growth, the opposite of the intended effect. If we reduce the corporate rate to 15% or 20%, enough to overcome the investment problem, we create enormous incentives for people to recharacterize wage income as business income, leading to enormous deficits. This leaves the most likely outcome

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“ Reducing corporate taxes is an idea that has broad support across the political spectrum since many US-headquartered firms have already “moved” to Europe to escape high US corporate taxes. The problem is that financing the lower tax rate requires eliminating corporate deductions for, among other things, investment, and doing that would have perverse effects.” being a small tax cut. While a large tax cut might seem more appealing, with an existing budget deficit that is already large, and on track to get much worse over the next decade, because of rising healthcare and retirement costs, the votes for a large tax cut that will increase our already enormous debt are simply not there. In short, the inability to increase the deficit on one hand and the political inability to raise revenues by closing loopholes on the other makes this entire exercise very difficult. Tax reform is hard, demands unpleasant trade-offs, and even creates divisions that cut across party lines. For example, some Republicans

nahb.org/MA

oppose tax breaks for renewable energy, but members of Congress from states with substantial wind and solar energy will strongly disagree. While Republicans may agree on the broad outline of tax policy, such as lower rates and fewer loopholes, they will divide on the details as they reveal themselves. With a slim Republican majority, Democrats in no mood to help, and an election year fast approaching, meaningful tax reform will wait for another Congress. Despite the legislative need, I peg the chances of a meaningful tax cut at 65%/35%.


EPAB ON THE SCENE

Mayor, City Officials meet at EPAB Office

It was a reception to introduce each other. It was a chance for us to meet the new leadership at the City of El Paso, and it was a way for them to meet us. Mayor Dee Margo, City reps Peter Swarzbien, Claudia OrdazPerez, Henry Rivera and Alsexsandra Annello were at the EPAB office to do just that. Joining them were City Manager Tommy Gonzalez, Col. Carie Westin and Larry Nichols from Planning and Permitting. The Association members welcomed them to our home with open arms and an open mind. “I’m really glad to be here and get to know some of the members,” Mayor Margo told the Outlook. “Many are folks I’ve known for years and others I just met, but all are important to growing the City and that’s what I want them to know,” he said. Henry Tinajero from WestStar Bank was just as enthusiastic about the reception. “I think this one thing that allows the mayor and reps understand who and what we are,” he said. “I couldn’t agree more,” said Sam Shallenberger from Morrison Supply. “These folks sometimes don’t understand the people behind some of their decisions and so having them here helps,” Sam said. The Association made it clear from the welcome that there would not be an agenda for the reception only an opportunity to meet and greet our elected officials. “I wanted to make sure that the reps and mayor would feel comfortable coming here away from the spotlight and give them a chance to rub elbows with our members,” said Ray Adauto. To that end the Association and the officials were invited to eat, drink and shake hands. That’s exactly what went on. It was Mayor Margo who wanted to say a few words to the gathered group. “Let me say this, I have known the association from the days with my old company J D Williams and so we have a good relationship with many of you,” he said. “Let me also tell you that our goals can’t be met without you.” Margo went on to talk about the good things going on in the city, the effort to attract businesses including Amazon, and the willingness to undo obstacles within the city. “I intend to keep El Paso growing and to make us a destination rather than a pass through,” the Mayor told us. “I want to thank the Association for the invite and to let you know that this is a lot harder than I thought it would be, but that I understand the builders and what we need to do to help you,” Henry Rivera District 7 rep said. His comments were echoed by the other reps as they enjoyed a moment of respite and a chance to meet members. “All in all, I would say this was very successful in lots of ways,” said Bobby Bowling IV. “It is one of the things we do to make sure they (the city) know we are diverse and focused on making El Paso better.”


2017 Issue 9

ENTRY INFORMATION COMING SOON

u

CELEBRATING EPAB THE BEST OF EPAB EL PASO ASSOCIATION OF BUILDERS

INNOVATION u DESIGN u EXCELLENCE u ACHIEVEMENT

AWARDS CEREMONY EARLY 2018


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Builders Outlook

2017 Issue 9

In Texas anyone with a truck and a hammer can call themselves a builder. Protect your biggest investment by choosing a Real Texas Builder, a member of the El Paso Association of Builders. A Real Texas Builder is a professional who invests in our community and works hard to build you the best home money can buy . Real Texas Builders are genuine, legitimate, educated and committed to the advancement of the home building industry.

Visit www.elpasobuilders.com for a list of our ‘Real Texas Builder’ members

© 2017 El Paso Association of Builders •  6046 Surety Drive • El Paso • Texas • 915-778-5387


2017 Issue 9

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Builders Outlook

Expert Advice

WHY do plan sponsor offer NQDC plans? by Ruth Rivera, VP Bukaty Financial

A Non-Qualified Deferred Compensation plan is gaining acceptance for companies that are looking for a competitive edge for retention and attracting key employees. El Paso Association of Builders is providing a resource for companies to leverage retirement benefits as a method that benefits the company and its community. A NQDC plan: • To allow plan participants to save for retirement in excess of qualified plan limits. • To help retain key employees • To provide competitive benefits package when recruiting key employees Your deferred compensation solution can be designed to complement existing retirement plans and help create employee loyalty and long-tern security. Your plan can include a variety of vesting, distribution and investment options, customized to meet your needs. Employees are eligible form these groups as well, Top Hat employees, 1099 contract employees and Board of Directors. As the plan sponsor, you can determine the different types of compensation eligible for employee elective deferrals or employer contributions. You can also limit deferrals based on objectives and plan design. The key plan design elements can help make your nonqualified plan successful such as who can participate, what happens with the balances, what contributions types are allowed, and how the balances get paid. EMPLOYEE DEFERRALS (option to choose minimum and maximum amounts for each) • Base salary • Service Bonus • Performance- Based Compensation (as defined by 409A) • Commissions

EMPLOYER CONTRIBUTIONS • Employer discretionary credits • Other employer credits WHAT HAPPENS WITH BALANCES (accrual) You can design the length and type of the vesting schedule to fit organizational needs (employee contributions are always 100% vested.) HOW DO BALANCES GET PAID NQDC plans have a variety of benefit distribution events available for you to select. These can be used to expand NQDC flexibility like the in-service option to allow pre-retirement distributions. • Benefit Distribution Events • Standard benefit distributions events (lump sum or annual distributions) • Separation from service • Seniority dates (with considerations) • Death • Disability • Unforseeable emergency • Optional benefit distribution events • Change in control • Allow in-service distributions NQDC plans are unfunded contractual obligations to pay benefits to a plan participant in the future. You can choose to informally finance the future obligation or leave the obligation unfinanced. The best financing method is dependent on the organization’s financial characteristics and the degree of risk that is acceptable to the organization. For a free consultation, please contact El Paso Association of Builders or email rrivera@bukaty.com

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Builders Outlook

EPAB Membership Builder members as of June 1, 2017

AT Architectural Designs Elsa Taracena Accent Homes Mark Dyer Bain Construction Scott Bain Bella Homes Leti Navarrete Bella Vista Custom Homes, Inc. Edgar Garcia BIC Homes Antonio Cervantes

Blue Star Construction, LLC. Carlos Villasana 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 Palo Verde Homes Edgar Montiel Pointe Homes Carlos Villalobos Porter Homes Albert Porter R.C. Baeza & Associates Robert C. Baeza

2017 Issue 9

Updated every month, here is a list of the 2017 EPAB Membership. Remember to please do buinsess with fellow members.

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 June 1, 2017

2-10 Home Buyers Warranty Michael Elman 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 Barrett Airworks Alexandro Castro 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 Commercial Insurance Brokers, Inc. Ken Foster Conde, Inc. Conrad Conde CQC Testing and Engineering, LLC Jaime Rojas Dal-Tile Joseph Cepeda Demcon Disposal Management, LLC Maria Elena (Nena) Gomez Dempsey, Cooper & Lane, Llc Richard T. Dempsey

Desert Quest Plumbing Hector Gonzalez Dunn Edwards Paints Nathan Gordon 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 Star Ready-Mix Concrete Inc. David Armendariz El Paso Times Jose Molina El Paso Truss Luis Mendiola El Paso Winnelson Rene Goldfien Ferguson Enterprises Inc. Albert Holguin First American Bank Luis Sauceda,

First Light Federal Credit Union Lorenzo Revelez Firth, Johnston, Bunn & Kerr Jay Kerr Foxworth Galbraith Lumber Dan Villarreal Franklin Building Materials Ricardo Aguilar; Cristina Sheldon G2 Ram Electric Luis Cano GCC Sun City Materials, LLC Victor Tito Marquez GECU- Greater El Paso Credit Union Brenda Aguirre Greater El Paso Chamber of Commerce Richard Dayoub 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 Insight Mortgage Company Shawn Weeks Interceramic Tile & Stone Gallery David Holguin Inter National Bank Natalie Ojeda 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 Lennox Industrie Sharon Horton 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 Julie Reyes Mechanical Technologies Jaime Zubiate Mingo’s Painting & Remodeling Erik Chavarria

Morrison Supply Sam Shallenberger MTI Ready Mix, Inc. Tony Mullen Neeuhome.com LLC Walter Pichardo New American Funding Brenda Trillo 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 Prewire of El Paso, Inc. Steven Drury Post Tension Dennis Moore Powerfoam Insulation: Metlspan NCI Group, Inc. Arnie Pederson RAC Doors Unlimited, Inc. Charles Foxx Randall Smith, CPA Randall Smith Real Estate Weekly Newspaper Riley Stephens Rebath of El Paso/Las Cruces Lisa Walling Remcon Self Storage Will Harvey

Richman Group Affordable Housing Corp. Kevin Hoffman Rocky Mountain Mortgage Company Dean Inniss Roe, Brad Bradley Roe Rudolph Chevrolet Art Smith Saldivar Electric, Inc. Martin A. Saldivar

Sarabias Blue Sanitation Monica Brown Saguaro Corporation dba EP C & D Recycling Sean Gillespie Senercon Javier Ruiz Sherwin Williams Paint Cruz Lopez Sierra Title Company/Lawyers Title 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 The Home Systems Heating & Cooling, Inc. Jesus Chain Trane Residential Solutions Robert Meske/ Kathleen Chacon TRE & Associates Linda Troncoso Trim Team Juan & Kris Hernandez USA General Contractors Javier Olmos Vision Consultants, Inc. Kelly Sorenson WestStar Home Loans Cinco Houghtoni WestStar Bank David Osborn WestStar Title Janette Coon


Association News & Events

2017 Issue 9

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

UPCOMING EVENTS

OCTOBER 12 BOARD MEETING 11:00 GENERAL MEETING 12:00 EL PASO CLUB, TOP OF CHASE BANK BLDG. OCTOBER 13-15 HOME AND GARDEN SHOW CIVIC CENTER

NOVEMBER 1 GOLF TOURNAMENT VISTA HILLS COUNTRY CLUB

Connect to the El Paso Association of Builders: www.elpasobuilders.com

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Sing prod e units rate uction is be es s g jobs. Meanwh projecte le-family very affo low by historical will rise, they addition d to incr doubled ile, home equity rdable.� stan al 27 ease an dards and percent sinc has units. in 2016 $12.5 trilli e 2011 and now nearly to 914,000 on. Supply stands at On the mul Headwi “The sing tifamily side le biggest 354,000 Crowe note nds people’s , prod units last asset in d several uction ran portfolio hinderin 331,000 year, slig most factors at is ga said Cro level that htly abo we. “That’s the home they NAHB surv more robust reco that are ve the level of own,� primary producti is considered a importa very. Citin ey of its purchas on. Multifam normal builders expecte ers of new nt because the sellers of reported members, 13 perc g an sam d to rise ily starts homes are the existing labor was 9 ent of this yea e concern homes. r and pos percent to 387,000 are the a significa cost and availab The mor that con t ility of that ratio sho s regarding lots decline nt problem units e equity cern to 378,000 a modest 3 perc in Concern t up to 58 percent 2011 and ent About one jumped to 61 perc in 2011 and unit Res s in idential in 2014. -fifth of buil ent remodeling 2016. at 58 perc s over building forecasted ders sha in 2014. mat ent amo activity is red the from 33 ng builders erials stood over last to increase 6.8 percent in 2014, perc year and in 2011. up No doubt percent rise an add ent in 2015 in 2016. itional 6.1 ideas that that the home brought really mad together that muc e the sho h of actually more interesting. wcase home Continu The proc ed Page setting up piecing the walls ess 6 together the floor The ann , a wall or and the ual Fall in the ceil all that goe brought Home and the faint ing is not thousan s on Garden ds of peo hearted. somethi Judson show ple ng for Habitat “We wer Will for e asked show kick iams Convention into the by could from Humanity to don ed ate people wer off October 9. Center as the this wha build, and t could,� Torr The thro I’m prou we ngs of presente e greeted by a d that we the showca es told the Out very nice d show look. The complim ly produce ents waiting for se was quickly rest of r Show Technology of the take Antonio. parts that some of the fram n to a lot out of San e could be The sho waste. used so and other w Ove to not go showcase featured a spe showcase rall a very bea to ctac utifu Metro Homhome by new buil ular for years home that will con l green der mem to come. tinue to was mad es. The design ber give e of The Fall site in orde to be partially con the display Home and show of structed Garden its established r to meet the time off some time center was kind this year sinc was the only lines for the ,� said Ass that eve e the civic taken ove Sam Sha Bowling ociates n with that show. “I have to r for the llenberg Chairma Cha tell hustled addition Men’s er. and exh to make al time we you center turn mpionship (AB ibitors and “We had new n bring to C). sure we product disp have.� the that was had a grea really complet ed into a large bow The civic to show,� a nice thin lays what’s hot consumer bec e with t said CTU Met ling alle state Fernan ause g to The pres run into in the wor ro said. situations of the art lanes. y enting attra ld of wal I know staged the Homes. Beautifu do Torres of Wiz center or like this ls,� Santos “We ard, Bria ction was l and eleg when the halls we n Santos Our sinc the show house became the Wall antly demons civic that can use are the favo who winning trati did and all the ere thanks to CTU the fit rite of ons duri several Best of efforts. “I really Show for of Show our shows,� said only ones “We love com ng the three day Acosta Reasuppliers and the Metro Homes Technology the Tommy off our mod are excited to ing so many event. Mantini flexible but to El Pas be able . “We hav folk of gratitud l Estate. We also staff of David to show estate age els to the public the Outlook s for the first time o and seeing e to the we would then again I kno e to be owe a and to the nts becaus civic cen exhibito . “The El w that this ,� have pen market and real e we’re rs who fille debt Builders ter with showed Paso Ass Brian told t up dem year new to the we think goo has thin d the duri d and ocia product help gs prod ng we have and it for the visit tion ed me get this eve other ass ucts and to What imp nt.� ociation or to see lots of other gigs of Home and continued. offer the consum a very good s recomm . Our Spr with aisles and ressed many was er,� Torr endation,� and I’m grateful ing 11-13, 201 Garden Show is es for the who has he continu on comforta the amount of roomthe carpeted authored reach pote 6. Don’t miss this for March ed. San bly mov to and is an several e around. was one “how to� tos, inventor Technologyntial customers. opportunity to of the nice “I thought boo com and Visi ks this st shows today at panies innovato t Show www we’ve had r for sev relationship including Home eral info .showtechnolog in Depot. y.co rmation “My Depot and with Rubber Mai on the Spr m to get d and Hom Lowes is ing show. really a great thin e g to See Mor e Photos Page 8

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The Builders Outlook is the official publication of the El Paso Association of Builders. Our award winning monthly newspaper is the only publication to target El Paso home builders and related businesses.

Widely distributed throughout the city and available to readers online, the Builders Outlook is an important advertising medium for any business that want to reach this valuable market.

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14

Builders Outlook

EPAB on the Scene

The El Paso Association of Builders was invited to participate in an unusual event at the El Paso Civic Center designed to introduce high school students to job and careers available in El Paso. Bob Ayoub of MIMCO lead the group that included WestStar Home Loans, SLI Engineering and the EPAB. I took place on September 28. Students were bussed in from the El Paso Independent School District put together by Workforce Solutions. In the event students could visit booths set up by numerous government agencies like the Border Patrol, FBI, El Paso Fire Department and others. Also represented were private sector employers like TFCU Credit Union, GECU, Providence Hospital, Texas Tech, UMC, Texas Gas, El Paso Electric, and others. Also, UTEP was well represented with several booths from different departments. Amazon was also displaying raising some interest as they look to fill the thousands of jobs being created across the country. Joyce Wilson, former City Manager was ecstatic about the event. “First of all, I am thrilled that the El Paso Association of Builders is here with us,” she told a group gathered in front of the booth. “This show is something that all employers in El Paso would benefit doing and this booth with MIMCO, SLI Engineering, WestStar Home Loans and the builders is giving our kids a look at good jobs with real possibilities,” she went on to say. “I want to make sure that our real estate industry is represented and I am so happy to have had the Association join us in bringing that message to our students”

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said Bob Ayoub. “I couldn’t see us not being here because we need workers, skilled and unskilled labor and professionals to take the reins of the industry,” Ayoub continued. Anita Dominguez is a senior commercial escrow officer at WestStar Home Loans. “I am so enthusiastic with the prospects and interest the kids showed,” she said. “I think this was a really good event for them as well as us.” Georges Halloul, P.E. of SLI Engineering was asked dozens of questions by students wanting to know about what it takes to be and engineer. “I told the kids that math is the key, and getting a good start in college goes a long way, but I also told them that engineering requires business sense to be successful,” Halloul told the Outlook. Plans call for the event to get bigger with more school districts involved. “This could be a great recruiting tool for us and we hope to participate again,” Ayoub concluded.

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Specially developed content offers home buying advice in both English and Spanish! • Helpful advice for buyers • Unique, easy to use glossary of real estate terms • Available all over town • Ideal way to reach first home buyers Call Margaret today 778-5387

2017 Issue 9


Builders Outlook

2017 Issue 9

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

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

■ADViSORY TO THE BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr ■BOARD OF DiRECTORS

Metro Homes West Star Bank Firth, Johnston,Bunn & Kerr Employer Benefits Ep Passage Supply Dorney Security Pioneer Bank Hunt Companies Bella Homes/Custom Dream TRE & Associates Homes By Design Southwest Land Dev. Services Dawco Builders Bella Vista Custom Homes Cullers Homes Icon Custom Homes DRE Development Snappy Publishing Legacy Real Estate Services Lone Star Title Hub International Deal -2-Deal Homes Pacifica Homes

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

Fernando Torres Henry Tinajero Jay Kerr Joe Bernal John Chaney John Dorney Kathy Carrillo Kathy Parry Leti Navarette Linda Troncoso Leslie Driggers-Hoard Robert Foster Walter Lujan Edgar Garcia Jason Cullers Samira Gonzaelz Sal Masoud Ted Escobedo Patrick Tuttle Sam Trimble Luis Rosas Delton Deal J. J. Vasquez

El Paso Disposal

 

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. Š 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 Associate Of The Year StrucSure Home Warranty  

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