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National, State & Local Building Industry News 2018: Issue 2
New Construction Forecast
Labor and land shortages to crimp constuction nationwide this year
By Clare Trapasso | REALTOR•COM
Builders are expected to put up more new construction in the year ahead—but the rate of building is likely to slow, according to several housing economists who spoke on Tuesday at the International Builders Show. The show is hosted by the National Association of Home Builders in Orlando, FL. About 653,000 newly built homes will be sold in 2018, up 5.4% from 2017, predicts NAHB's Chief Economist Robert Dietz. That may sound impressive, but the growth rate is down from 10.5% in 2017. And those additional homes aren't nearly enough to meet demand. "There will be modest growth," Dietz said at the show. "We're going
to see some changes in the types of homes that are being sold by builders, with more lower-priced offerings." But "lower-priced" is in the eye of the beholder—many cash-strapped, first-time, and millennial buyers won't be able to get in on the action. Dietz defines this category as costing less than $350,000. The national median home price was $269,900 as of Dec. 1, 2017, according to the most recent realtor.com® data available. Why is new construction so expensive? New construction is so expensive because the labor and land shortage has put a crimp in building, materials costs are rising, and it's become harder for builders to obtain financing for their projects. Local regulations in certain parts of the country may also
make it more time-consuming—and therefore costly—to put up new homes. (A recent tariff on Canadian lumber imported into the U.S. could raise the cost of building a home by about $1,300, Dietz said.) The big wild card, however, is the recent tax reform, Dietz said. If more folks have more money in their pockets as a result of the tax changes, it could make it easier for them to save up for a down payment. But the recent changes to the tax code, particularly capping the mortgage interest deduction and limiting local and property tax deductions, may also make well-off potential buyers more likely to shy away from buying pricier new construction. If that happens, builders will put up fewer homes.
In addition, mortgage interest rates are expected to rise by 0.25% several times next year. This makes home buying more expensive. "Mortgage rates are going to go up a bit more this year," David Berson, chief economist of Nationwide Mutual Insurance Company, said at the show. "Inflation is going to be just a tad hotter than it's been.” What kinds of homes are likely to be constructed in 2018, and where? Urban villages are expected to take hold, predicts Dietz. These are larger-scale, very walkable developments that often include a mix of townhouses, condos, and apartments along with shopping, grocery stores, and entertainment. They are located in cities, suburbs, and even exurbs (the farther-out burbs). He expects to see more townhouses go up, as they require less land and are less expensive to construct, and more teardowns— razing one building to put up another—to address the lack of land. New-home sales are expected to be highest in the South, particularly in areas where the local economies are doing well, said Frank Nothaft, chief economist at housing data firm CoreLogic, at the show. The region is also attractive to buyers as home prices, taxes, and the cost of living are lower than on the coasts and there are plenty of job opportunities. Houston; Dallas; Phoenix; Atlanta; and Austin, TX saw the most home growth from fall 2016 through fall 2017, according to CoreLogic. Those areas are expected to remain hot in 2018.
Clare Trapasso is the senior news editor of realtor.com and an adjunct journalism professor. She previously wrote for a Financial Times publication and the New York Daily News. Contact her at clare.trapasso@move.com Follow @claretrap
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Builders Outlook
2018 Issue 2
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2018 Issue 2
President’s Message
Builders Outlook Edmundo Dena
President, el Paso association of Builders
Let’s drive up membership! The el Paso association of Builders for those that don’t know is a little bit mis-named. You see it is for the home builders that it was created back in 1946 but it needed support by those clearly affected by those builders. That’s why our association, like all others in the country, have a larger pool of associates or nonbuilders as members. Simply put the associates outnumber builders in the federation. Why do i bring this up now? Because we are getting close to critical mass in membership, we need new or returning members. on april 2 we will hold our first membership training with the oliver group. Who are they? Rob and Kate oliver are experts in training
associations and groups how to recruit members. in their exclusive program we have seen membership drives bring a hundred or more new members in during a two-day drive. While we hope that this year we can accomplish something like that i think that we can easily bring in fifty or more. i am asking you as members to volunteer to participate in the training and the drive. not only is it good for us but the tactics you’ll learn with the oliver’s can be used in your own business. as of this column we are at capacity for golf teams for our april 18 tournament. What we need is a commitment for tee box signs, a simple way to support
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the association. $125 buys you the spot, so let Margaret know please. of course, we also have our Parade of Homes with nine builders ready to showcase starting with the preview party on april 6 and during the regular show april 7 to 22. look for information on the preview event and opportunities to sponsor different things. Thanks to doug Schwartz for making artcraft estates available and to all the builders who are building in it. Should be a really great show. For now all i can say is make it a good March. See you soon.
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Executive’s Message Ray Adauto, Executive Vice President EPAB
Associations have a long history of being asked that question and it’s no different when we are recruiting members or asking them to renew. It’s a painful question because most of the time it comes from people who have either a bad experience or no active experience with being a member. In reality most memberships whether they are for and association, gym, or shopping are sometimes never used or used so sparingly that it seems like there’s no value to it. Sometimes a membership is the last item on your heavy workload so you overlook it or worse never use it. It’s an age-old question of what comes first, the chicken or the egg. An association like ours has a very specific reason to exist: advocacy for the new home construction business in El Paso. Some will wonder what the word advocacy means. According
What’s in it for me? Builders Outlook
2018 Issue 2
“I like to say this about trade advocacy: it is an important part of your professional life because together you have more strength than trying to go it alone. “ to Wikipedia “Advocacy is an activity by an individual or group which aims to influence decisions within political, economic, and social systems and institutions. Advocacy can include many activities that a person or organization undertakes including media campaigns, public speaking, commissioning and publishing research or conducting exit poll or the filing of an amicus brief. Lobbying (often by lobby groups) is a form of advocacy where a direct approach is made to legislators on an issue which plays a significant role in modern politics.[1] Research has started to address how advocacy groups in the United States[2] and Canada[3] are using social media to facilitate civic engagement and collective action.� I like to say this about trade advocacy: it is an important part of your professional life because together you have more strength than
trying to go it alone. In membership there’s a lot of different components including advocacy, networking, fun, sharing and much more. Some members prefer to just join to say they are members. Others are wanting to earn some business from members, while others like the fun part or the networking. All of these are good reasons to join or remain a member. What isn’t good is to hear “I got nothing from it�. Why? Because a membership is only as good as you use it. Heck many of us including me belong to a gym membership. Rarely or never use it but man o man I’m a member and so therefore I’m in the group. Seriously a gym membership can only do you good if you use it. So too with the Builders Association. We have an opportunity to ask our neighbors to join our trade association and begin to help us advocate,
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motivate and join forces to keep this industry healthy. On April 2 we begin a training with Rob and Kate Oliver on getting prepped for the upcoming membership drive. The Oliver Group is widely respected as one of the best membership training companies in the world. In the past we’ve used them to increase our own membership. What we find ourselves doing as well is making our daily work activities better because of what they show us. We will have teams competing for the right to claim the best of the best membership recruiters in the EPAB. There will be prizes for doing this as well as an opportunity to get involved in the association and making you a better advocate. Don’t wait to get invited, just reach out to me and we’ll put you in a team. I promise that it is nothing like you’ve ever been involved with and the training will last a lifetime.
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National Builder News
2018 Issue 2
Home Builders Seek Better Cooperation with OSHA to Improve Worker Safety
n The National Association of Home Builders (NAHB) today called on the Occupational Safety and Health Administration (OSHA) to expand its small business compliance assistance to help home builders and other small business owners to improve the safety of their operations. Testifying on behalf of NAHB at a House subcommittee hearing on “a more effective and collaborative OSHA,” J. Gary Hill, a custom home builder from Greensboro, N.C., and 2018 chairman of the NAHB Construction Safety and Health Committee, told lawmakers that reforming and improving how OSHA operates is a top priority of the housing industry. “In recent years, OSHA has unleashed a regulatory tsunami on the construction industry,” said Hill. “The significant growth in the number and scope of regulations, along with the associated costs of these regulations, has raised concerns from NAHB members about OSHA’s heavyhanded enforcement practices and procedures.” According to the Small Business Administration, federal regulations cost small businesses 60 percent more per employee than it costs large businesses, and compliance with these existing regulations can average as much as $7,000 per employee. “In our industry, a sizeable share of these regulations comes from OSHA, and the costs imposed by OSHA regulations are financially onerous to every aspect of the home building industry,” he said. Though facing prohibitive regulatory costs, Hill underscored that a top priority for small home building firms is to create a safe workplace environment for their employees. It also makes good business sense. “It is no secret that safety saves lives – and money,” he said. “We have learned that the money saved through reduced workers’ compensation costs, lost time due to worker injuries and less time spent on accident claims and reports can be converted into improvements in the way employers operate their businesses. Moreover, a safe jobsite is also the key to retaining good employees and hiring new ones.” Hill outlined three steps that OSHA can take to improve operating procedures that would make regulatory compliance more cost-effective and make the agency more user-friendly for small businesses. At the same time, he noted that the following actions by OSHA would boost housing affordability and continue to improve the safety of workers in the home building industry: Focus agency efforts on providing employers with compliance assistance and training for existing regulations and standards so that OSHA is not needlessly piling on regulatory burdens that small businesses cannot effectively meet. By pursuing a collaborative relationship with trade associations and their members, OSHA will better be able to inform and educate employers of the responsibilities specified in the agency’s standards and regulations. Develop new and innovative ways to partner with employers to achieve compliance. Small employers need help understanding the complex OSHA regulatory regime and want assistance in identifying hazards that pose the greatest risk of a worker being injured. Modernize methods to disseminate compliance assistance information to include video-based education segments and checklists viewable from computers, tablets and smartphones. “By pursuing achievable reforms and leveraging the expertise of industry groups such as NAHB, Congress and the administration can succeed in making OSHA more user-friendly for small businesses while also improving worker safety,” said Hill.
Builders Outlook
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Builders Outlook
2018 Issue 2
2018 Star Awards CALL FOR ENTRIES NOW OPEN 8 3
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2018 Issue 2
Economic Forescast
Elliot Eisenberg Economic & Policy Blog
The Fed’s 2018 Interest Rate Plan
At the start of 2017, the Federal Reserve anticipated raising interest rates three times and shrinking its large bond portfolio. Unlike in 2015 and 2016, where the forecasts made by the Fed were overly optimistic, the 2017 forecast was spot on. Whether officials at the central bank can pull off a repeat performance of three rate hikes in 2018 will very much depend on two conflicting signals from the two variables that matter most to the Fed: employment and inflation. Solid job gains have pushed the unemployment rate to just 4.1% in January, a 17-year low. If the unemployment rate drops as much in 2018 as it did in 2017 -- a 0.7 percentage point decline – it would be at a low last seen in the late 1960s. Yet inflation, despite some recent rumblings to the contrary, remains stubbornly soft. Excluding volatile food and energy, the core inflation rate is just 1.5% -- quite a distance from the Fed’s 2% target, despite the very low unemployment rate. Initially, some at the Fed thought the low inflation rate was due to unusual one-off events such as declines in the price of cell phone service, cars, prescription drugs, and surprisingly weak healthcare and higher education inflation. However, as the inflation weakness has persisted, some Fed officials are beginning to rethink, at least slightly, the belief that employers bid up wages as workers grow increasingly scarce. That said, they still fundamentally believe that once the unemployment rate falls low enough, wages will rise. It’s just taking longer than in the past for this to take place. At this point, there are several scenarios that can play out. Ideally,
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employment growth slows a bit; the unemployment rate falls a bit more but not much; wage inflation starts to rise; and overall economy-wide inflation strengthens. This would allow the Fed to continue raising rates slowly and not surprise markets. There are, however, several risks to this Goldilocks outcome. The unemployment rate could drop too low too fast and in the process, ignite inflationary pressures of all sorts. This would force the Fed to raise rates quickly, potentially triggering a recession. Alternatively, inflation stays low as the Fed slowly raises rates because the unemployment rate keeps falling. In this case, inflation is pushed even lower, forcing the Fed to stop raising rates. In this scenario, the Fed would have little room to lower rates when the next recession comes, as they would stop raising rates earlier than they would have liked. Luckily, inflation seems to be finally appearing, and this will allow new Fed Chair Powell to raise rates in 2018 at a measured pace like former Fed Chair Yellen. But, as was the case in 2015 and 2016, unforeseen circumstances are likely to necessitate deviations from the preferred path. I, for one, wish Powell luck, but strongly suspect that the economy will be slightly stronger, and that inflation will rise faster than expected, necessitating four interest rate rises -- one more than the Fed currently expects. No matter what happens, 2018 will be bumpier than the economically serene and placid 2017.
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Q&A: Woody Hunt
Executive chairman, Hunt Companies
There’s a political tension that plays out time and time again between those who want to invest public dollars to create a better quality of life so you have the conditions for higher incomes and those who say we can’t afford it. Whether it’s the ballpark or the arena or any other quality of life investment that is supported by tax revenues, you have that dialogue. Q: Can we afford it? Isn’t that a fair question?
It is a legitimate debate. History tells us that we haven’t always been poor. We lost our competitiveness, but if we had it at one point, there’s no reason to think we can’t get it back. There’s no magic pill that’s going to take you from less competitive to hyper competitive within a short period of time. So it’s a culmination of multiple decisions, public and private, over time, that creates a hyper-competitive region.
Raised in Ysleta in the Lower Valley, Woody Hunt now helms what is likely El Paso’s largest privately held company: Hunt Companies. What started 71 years ago as a small lumberyard by Hunt’s grandfather, the 11companåy conglomerate now employs about 6,500 people across the United States and has $1.5 billion in assets under management. Today, the 72-year-old businessman and philanthropist spends much of his time giving his wealth away. He passed the CEO job to his nephew Chris in 2015 and now serves as executive chairman of the family-run company. In an exclusive interview with El Paso Inc., Hunt talked about how far El Paso has come, how much farther it has to go.
By Robert Gray / El Paso Inc.
Q: What is the biggest challenge facing El Paso?
We have a very low unemployment rate right now; it is below the state and the country. I can’t remember it ever being this low. That is extremely positive. But we have low unemployment and low incomes. So the biggest challenge we have now is how do we move up the skills ladder and up the income ladder. Q: In some neighborhoods, more than 40 percent of El Paso households live in poverty. El Paso’s median income remains among the lowest anywhere. What is it going to take to move the needle?
There’s no silver bullet to go from low incomes to high incomes. It’s going to take investment in a more competitive quality of life, which gets back to the political equation. If we are not willing to invest in ourselves to have the quality of life that is necessary to attract and retain higher income jobs, then we are essentially making a decision that we are always going to be poor.
Q: Other cities are also investing in themselves. Is El Paso moving fast enough?
Competition is great because it forces change that wouldn’t otherwise happen. It makes it harder for those who say we can’t invest because we’re poor to prevail. That’s not a decision to preserve the status quo; it is a decision to continue to lose competitiveness.
Q: The effort that began in the early 2000s to reverse El Paso’s economic decline has resulted in a health sciences center, passage of the quality of life bond and a Downtown ballpark. Community leaders helped secure the $6 billion expansion of Fort Bliss. What’s next? What other ‘big thing’ can El Paso pursue? The Borderplex Alliance has a strategic plan, which has multiple components in it. The medical device industry is one of them.
We have to operate as a region and look at our comparative advantages. Juárez is certainly much better connected to the world economy than El Paso. They are essentially driving our competitiveness in many respects by participating in the world economy.
They have 300,000 people employed in manufacturing that is selling right into the world markets. That’s a huge advantage that we need to continue to leverage. That’s why the outcome of the NAFTA negotiations is so important for the border and for Texas, which is the largest exporting state by far in the country. Q: What could the NAFTA negotiations mean for El Paso?
It’s certainly been a very bumpy road. I’m very hesitant to be optimistic. I do think it is a compelling argument that the state of Texas needs NAFTA. I mean, 40 percent of our exports go to Mexico. The stakes are very high to get an outcome that hopefully makes us more competitive. There are more than 100,000 workers that work in the auto industry in the region. Some disruption to that supply chain would hurt. That’s a major risk factor. Q: When you look at all the various risks along the border right now, how high do the NAFTA negotiations rank?
Based on the amount of time and resources I have spent over the last 15 months, I would put it at the top – as far as a risk factor. Q: What time and resources are you investing?
It’s basically been an effort first to organize the border and then to communicate with the rest of the state. The border can’t do it by itself, so it has to convince the state of Texas and the political leadership that NAFTA is extremely important. All of the business leadership in the major metropolitan areas and the state’s largest firms need to be engaged in the process. Q: What’s a specific example of that?
The Borderplex Alliance and its CEO Jon Barela have led the effort here. It ultimately developed into the Texas-Mexico Trade Coalition. Jon sits on the executive committee. They’ve engaged a lobbyist in Washington, D.C., and Jon has testified there a couple of times.
Q: How far has El Paso come and how much farther does the city have to go?
The benchmark I usually use is post World War II census data. El Paso was 12 percent above the state in education for post-secondary attainment and 14 percent above for median income. By 2000, on both of those measures, we were 30 percent below the state. It doesn’t mean our education levels and incomes didn’t improve, but clearly we had lost our competitiveness. Q: El Paso improved but not fast enough.
Nowhere near fast enough. In the mid-1990s, there was an increasing focus on changing those circumstances. How do we become more competitive? That is an ongoing process. Q: Can El Paso attract, or grow locally, more headquarters like Hunt Companies?
Usually, when you’re recruiting companies to a region, you’re not bringing the top-level executives; maybe they’re opening a new plant or facility. The only way you can do that is by growing local companies, which is increasingly technologically based. So how do you create an ecosystem of innovation and venture capital and startups where everybody wants to do that? There are efforts to do that, and the Medical Center of the Americas Foundation has really been the leader there. Q: How do you hold a family business together?
I had to make a decision almost 15 years ago: Is this a sustainable business absent me? Once you make that decision then you are into succession planning. You’ve got to decentralize and disperse so everything isn’t concentrated in one person. This interview conducted by Robert Gray was originally published on February 18, 2018 in El Paso Inc. Business Journal. It appears in the Builders Outlook with the permission of El Paso Inc. and Hunt Companies. The full interview can be viewed online at www elpasoinc.com. Robert Gray may be contacted at rsgray@elpasoinc.com or by phone at 915-534-4422 extension 143
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Loan Originator Perspective Bonds sold off sharply today, as Fed Chairman Powell testified before Congress. While his rhetoric wasn't surprising, it reinforced markets' views that the Fed will continue reducing its balance sheet. Nothing's changed here, the trend is to higher rates, and that means lock early!-Ted Rood, Senior Originator
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2017 had proven to be a relatively good year for mortgage rates despite widespread expectations for a stronger push higher after the presidential election in late 2016. While rates remain low in absolute terms, they moved higher in a more threatening way heading into the 4th quarter, relative to the stability and
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2018 Issue 2
improvement seen earlier in 2017 The default stance for now is that this trend toward higher rates has the potential to continue. It will take more than a few great days here and there for that outlook to change. For weeks, this bullet point had warned about recent stability inviting a bigger dose of volatility. That volatility is now here. As such, locking is generally the better choice until the volatility is clearly dying down. Rates discussed refer to the most frequently-quoted, conforming, conventional 30yr fixed rate for top tier borrowers among average to wellpriced lenders. The rates generally assume little-to-no origination or discount except as noted when applicable. Rates appearing on this page are "effective rates" that take day-to-day changes in upfront costs into consideration.
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It was a good run for mortgage rates, relative to the rest of 2018, but after spending 3 days in a row with mild-to-moderate improvements, rates quickly snapped back to multi-year highs today. The general trend in 2018 as well as the general level of volatility deserve some of the credit. The bonds that underlie mortgage rate pricing actually aren't quite back to last week's levels. Lenders are simply quicker to adjust things for the worse when the trend has been unfriendly and when the prices of those underlying bonds have been jumping around as much as they have. The other part of the credit goes to the market's interpretation of comments made by new Federal Reserve Chair Jerome Powell, who gave his first semi-annual congressional testimony today. Powell didn't do or say anything wrong. In fact, he did a great job conveying what recent speeches and policy documents suggest we already know about the Fed's policy stance. The only issue was one of his comments was open to the interpretation of pointing toward an additional rate hike in 2018. Many market participants were already planning on that rate hike, but the prevailing view was for a slightly slower pace. After the Powell comment (he simply said he thinks the economic outlook is stronger now than he did in December), some of the investors in the "prevailing view" camp shifted their rate hike outlook to the "additional hike in 2018" camp. That was enough for mid-day bond market weakness and widespread lender adjustments to higher rates in the middle of the day.
Mortgage Rates Snap Back to 4-Year Highs
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2018 Issue 2
Builders Outlook
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12 EPAB Membership Builder members as of February 28, 2018
Bain Construction Scott Bain 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 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 Bella Custom Dream Homes Leti & Javier Navarrete 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 Lloyd Hamilton Construction Lloyd Hamnilton III Loyalty Homes Gustavo Loy M A Builders & Design, LLC Mustafa Ali Metro Homes, Inc. Fernando Torres, Judith Arrunada, 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 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
Builders Outlook
2018 Issue 2
Updated every month, here is a list of the 2018 EPAB Membership. Remember to please do buinsess with fellow members.
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/Accent Homes Herschel Stringfield
Associate Members as of February. 28, 2018 2-10 Home Buyers Warranty Jeanine Jones 84 Lumber Ernie Chavez 915 Siteworks, LLC Dan Guevara 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 Border Solar Javier Ruiz Builders Source Appliance Gallery Kathy Rose, Sandra Lucero C. D. Lee/Britton Insurance & Bonding Anthony Landavazo; Lisa Daniels Casa Ford & Casa Nissan Luke Lowenfield CEA Engineering Group Jorge L. Azcarate Central Texas Metal Roofing Supply Co.,Inc. Ben Garza, III Centricity Brent R. Morgan Chaparral Materials, Inc. Leroy Trujillo City Bank Texas Bob Kotarski City Lights Thomas Brown Cognent, Inc. Martin Paredes Commercial Insurance Brokers, Inc. Ken Foster Conde, Inc. Conrad Conde Copenhagen Imports Flemming Carlsen CQC Testing and Engineering, LLC Jaime Rojas Dal-Tile Joseph Cepeda Delek US dba 7 Eleven Sonja Scanlan Demcon Disposal Management, LLC Maria Elena (Nena) Gomez 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 Gilbert Pedregon 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 Fire Smoke N’ Grill Bill Owen First Light Federal Credit Union Lorenzo Revelez First National 1870 Haley Merritt 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 Antonio “Tony” Chavez GECU- Greater El Paso Credit Union Brenda Aguirre Greater El Paso Chamber of Commerce GEPAR-Greater El Paso Assoc. of Realtors Jason Sanchez Hardware Specialties Jeff R. Paxton Harris Real Estate Group Lane Harris Haskins Electric Charles B. Haskins, Jr. Home of Texas Mark Smiley HUB International Luis Rosas 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 Jimmy Garza Emergency Water Removal Veronica Buchanan Jobe Materials, LP Charlie Tellez Joe Bernal Insurance & Financial Services, Inc. Joe M. Bernal L & P Building Supply Denise McConnell LCR Resource, Inc. Ralph Sanchez Legacy Real Estate Services TTI Prop. Management. Patrick Tuttle Lennox Industries 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 Merrill Lynch Thomas (Tommy) Gabriel Mini Concrete Materials Joe Soto Morrison Supply Sam Shallenberger MTI Ready Mix, Inc. Tony Mullen
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 PRIDE Ascend Dr. Lonny Wright Post Tension Dennis Moore 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 Will Harvey Richman Group Affordable Housing Corp. Kevin Hoffman Rocky Mountain Mortgage Company Dean Inniss Roe, Brad Bradley Roe Rudolph Chevrolet Mike Ruffin Saldivar Electric, Inc. Martin A. Saldivar Sarabias Blue Sanitation Monica Brown Senercon Javier Ruiz Sherwin Williams Paint Cruz Lopez Sierra Title Company Angelique Roman Simpson Strong-Tie Company, Inc. Ken Donham Snappy Publishing, LLC Ted Escobedo Solar Smart Living Larry Perea Southwest Décor 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 Houghton WestStar Bank David Osborn WestStar Title Janette Coon
2018 Issue 2
13
Builders Outlook
Upcoming Events
MARCH 8, 2018 BOARD MEETING 12:00 NOON EPAB OFFICE MARCH 14, 2018 SPEED SELLING EPAB OFFICE MARCH 21-23 TAB MEETING AUSTIN, TX APRIL 2 Membership Training EPAB OFfices
www.elpasobuilders.com
APRIL 6-15 PARADE OF HOMES ARTCRAFT ESTATES APRIL 12, 2018 BOARD & GENERAL MEETING 11:00 BOARD 12:00 GENERAL EL PASO CLUB APRIL 18, 2018 GOLF TOURNAMENT BUTTERFIELD TRAIL
New Members
LCR RESOURCE, INC. CONTACT: RALPH SANCHEZ 11227 PELLICANO, SUITE B EL PASO, TX 79935 915-701-2325
FIRE SMOKE N’ GRILL CONTACT: BILL OWEN 2601 N. STANTON, SUITE A EL PASO, TX 79902 915-929-1937
Member News
Blast From the Past
What a surprise when our former bookkeeper Dennis Votava stopped in for a visit. Dennis had spent several years with the EPAB after a career with T-Mobile. In his position Dennis was responsible for the everyday function as the guy taking in the money, deposits, billing and processing. “I think I had more hats in this job than I had in all my other jobs,” he told Ray on the visit. Dennis is a military veteran and is permanently retired now at age 74. “I just do what my wife says, and sometimes I don’t” he said with a laugh. Dennis looks slim and trim and certainly not his age. “Got a new cardiologist who has really helped me. Make sure to say hello to the members,” Dennis told us. So from Dennis to all of you a big Hello. “Oh yeah, tell them I’m not dead yet,” he said half joking.
Kudos
Congratulations to Kathy Parry on the birth of granddaughter Reata Ward born to Charla and Dalton Ward.
Condolences
Our deepest condolences to Ray Adauto on the loss of his Uncle Angel Adauto
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14
February Meeting
The EPAB held it’s first general meeting of the year and welcomed Randall Smith, CPA as the guest speaker. Randall presented the latest information on the Tax Credits passed by Congress in December 2017. Smith held the audience in his palm as the questions running through everyone’s head were answered one by one. “I am learning this new tax law as is everyone else, including Congress,” Smith told the Outlook. “The reality is that it will take a year or more for us to get our head around the changes and even then, some things will be clear as mud,” he continued.
Associates Council
The Associates Council met in February and over forty members enjoyed a couple of beverages and conversation. Sam Shallenberger, Associates Vice President, opened the gathering by giving an update on upcoming events. Sam also asked that the associates become involved in the events and programs the association will be having this year. Several event chairs were in the audience and each g ave a report. Pat Tuttle co-chairs the Spring Golf Tournament and told the group that there were some great opportunities for advertising at the golf course. Angelique Roman, Brenda Aguirre and Patricia Martinez head up the Community Service Committee. They talked about the upcoming playhouse build for the Children’s Foundation and reminded the group that they are still looking at helping some needy folk s with their homes. Sam announced that there would some off site get togethers during the year, with the first event being held at Morrison Supply sometime in May. All members would be welcomed at the event, just a social event with networking.
Builders Outlook An overflow crowd gathered at the El Paso Club for the meeting. President Edmundo Dena welcomed the members and guests and Ray Adauto gave an update on upcoming events. Reports were made regarding those events and a call for help with several of them. The association will be constructing a playhouse for the El Paso Children’s Foundation that they will auction off at their annual gala. Angelique Roman asked the attendees to help with lumber, paint, shingles, and muscle when we get ready to build. The meeting concluded with President Dena adjourning the meeting.
2018 Issue 2
Builders Outlook
2018 Issue 2
6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038
772-7495
Sandra Lucero, Builders Source Ted Escobedo, Snappy Publishing Jorge Herrera, J&H Post Concrete & Post Tension Angelique Roman, Sierra Title Patrick Tuttle, Legacy Real Estate Sam Trimble, Lone Star Title Patricia Martinez, Stewart Title Randall Smith, Randall Smith, CPA
■ ExEcuTivE OFFicERS PRESiDENT Edmundo Dena vicE PRESiDENT Sergio Cuartas SEcRETARY Edgar Garcia ExEcuTivE vicE PRESiDENT Ray Adauto PAST PRESiDENT Don Rassette
■ TAB STATE DiREcTORS Randy Bowling - Life Director Sam Shallenberger Edmundo Dena
■ cOMMiTTEE cHAiRS Membership Ted Escobedo Patrick Tuttle
■ NATiONAL DiREcTORS Bobby Bowling, IV Demetrio Jimenez Leslie Driggers Hoard -Alternate Antonio Cervantes - Alternate
Finance committee Kathy Carrillo/Treasurer Henry Tinajero
Honorary Life Members Mark Dyer Wayne Grinnell Don Henderson Anna Gill Brad Roe Rudy Guel
Community Outreach Angelique Roman Brenda Aguirre Patricia Martinez
Land Use Council Sal Masoud
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 Carlos Villalobos
Education Kelly Sorenson Delton Deal
■ ADviSORY TO THE BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr
■ BOARD OF DiREcTORS Builders: Delton Deal, Deal 2 Deal J.J. Vasquez, Pacifica Homes Leti Navarrete, Bella Custom Dream Homes Bud Foster, Southwest Land Development Kathy Parry, HUNT Communities Lee Gillett, Classic American Laura Loy, Loyalty Homes Walter Lujan, Dawco Homes Fernando Torres, Metro Homes Leslie Driggers Hoard, Homes by Design Carlos Garcia, ICON Custom Sal Masoud, Del Rio Development Fernando Santana, Santana Custom Homes Chris Hakes, Hakes Brothers Associates: Joe Bernal, Joe Bernal Insurance Henry Tinajero, WestStar Bank Kathy Carillo, Pioneer Bank John Chaney, Passage Supply Luis Rosas, HUB International Brenda Aguirre, GECU Mortgage
2017 Member Of The Year Don Rassette Rassette Homes
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. © 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
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