www.elpasobuilders.com
VOL 2019 ISSUE. 5
BuildersOutlook PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS: NATIONAL, STATE AND LOCAL HOME BUILDING INDUSTRY NEWS
Forecast Calls for Hot Housing Market Economists from Freddie Mac predict an increase in home sales this summer A recent forecast from the economic research team at Freddie Mac predicts an increase in U.S. home sales during the summer of 2019. This positive outlook is largely based on low mortgage rates, low unemployment, and wage growth. A Hot Housing Market for Summer 2019? Economists and analysts from Freddie Mac published an updated forecast for the nation’s housing market. Among other things, they expect to see an increase in home sales over the coming months due to low mortgage rates and other factors. Freddie Mac’s chief economist Sam Khater said “Our outlook for the housing market remains largely unchanged. We still expect stronger home sales and housing starts in the coming months due to favorable market conditions and accelerating wage growth.” According to Freddie Mac’s latest forecast, the U.S. housing market could heat up during the summer of 2019. They pointed to an increase in home sales, in particular. “Expect total home sales to surpass 2018 levels and reach 5.98 million units in 2019,” the reports stated. “As was noted in last month’s forecast, most of the increase is expected to come from existing home sales.” A separate report showed that the average rate for a 30-year fixed mortgage loan dropped to 4.07% during the week of May 16, 2019. During the first week of 2019, the average rate for a 30-year home loan was 4.51%. So they’ve come down quite a bit since then. The team at Freddie Mac expect mortgage rates to remain below 4.5% (on average) through the summer of 2019 and beyond. They expect the average rate for a 30-year fixed home loan to average 4.3% this year, down from last year’s average of 4.5%.
So from an interest standpoint, summer 2019 could be a great time to buy a home. Unemployment Down, Wages Up The nation’s unemployment rate dropped to 3.6% in April 2019, according to the Bureau of Labor Statistics. A year ago, the jobless rate was 3.9%. The unemployment rate has been dropping steadily since 2009, when it peaked at 10%. Wage growth among Americans has also risen. According to a May 2019 report from the U.S. Labor Department, average hourly earnings rose 3.2% in April compared to a year earlier. That marked three consecutive months during which wage growth topped 3%. Job gains and wage growth are two of the factors singled out in this latest forecast, which predicts a warming housing market in summer 2019. Will Trump’s Trade War Hurt the Housing Market?
But not all is rosy. Uncertainty surrounding Trump’s trade war with China could impact the housing market in the months ahead — and not in a good way. Among other things, a prolonged trade war with China could send consumer confidence into a downward spiral. This in turn could reduce housing demand, at a time when the market is primed for growth. Trade wars are notorious for increasing costs for consumers, and this one appears to be heading in that direction as well. It could also increase home-building costs, due to higher tariffs on building materials. Rob Dietz, chief economist at the National Association of Home Builders, recently told MarketWatch: “We estimate that the 25% rate on the existing set of tariffs represent a $2.5 billion annual tax increase for the housing sector in terms of materials used for construction. A trade war will also hurt sectors of the economy, like agriculture, and increase overall consumer wariness.”
Home Prices Slowing, as We Approach Summer U.S. home prices, meanwhile, have slowed over the past year or so. According to the latest data from Zillow, the median home value in the U.S. rose by around 6% over the past year. But a recent forecast from the company predicts smaller price gains over the coming year. “United States home values have gone up 6.1% over the past year and Zillow predicts they will rise 2.8% within the next year,” the company stated in May 2019. But this relatively modest forecast isn’t necessarily a sign of weakness in the housing sector. It’s more like a market correction. House values in the U.S. rose unusually fast over the past few years, following the recession. So it’s only natural that they would begin to slow to a more historically “normal” rate of appreciation. http://www.homebuyinginstitute.com
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President’sMessage
Long-Range Planning and Conversational Intelligence: Immensely Revolutionary Ideas that Can Make a Difference
Sergio Cuartas President El Paso Association of Builders
When I read my Sunday edition of El Paso, Inc. or any other business communication, I scan for the key headlines or read the first sentences of each paragraph in order to get the general idea of the articles I like in the shortest amount of time. Perhaps you do the same… Anyway, if you read this article, take a pause and think through a couple of revolutionary ideas which I came across recently from a book written by Judith Glaser called Conversational Intelligence: How Great Leaders Build Trust & Get Extraordinary Results. Ms. Glaser died recently, but left a tremendous legacy which combines neuroscience, organizational anthropology, and
emotional intelligence among other things into extremely effective tools for leaders at home, at work, in an association, etc. Her main idea was this: The quality of the culture in an organization depends on the quality of the relationships among the members of such an entity and the quality of the relationships depends on the quality of the conversations that take place among those members. Think about that for a few seconds. Glaser started working on this book at the young age of 14 because her father was a stutterer and in her home, they did not have much conversation. So, at a young age, she was already beginning to reflect on personal communication issues. She continued this work throughout her career until it was finally published. Glaser worked as a leadership consultant and coach with many clients including Clairol, Citibank, Pfizer, Burberry, American Airlines, and Verizon. Here are some of her other ideas. Reflect for a few seconds about each sentence before reading the next one. For example, you could ask yourself the following questions before moving from one idea to the next. Do you see yourself doing that? How can you develop these skills?
1. As you go into a conversation, be open-minded about being influenced. 2. Listen to really connect with people and without judging or rejecting. 3. Ask questions for which you do not have the answer instead of listening for confirmation. 4. Ask more questions to “double click” on key words or ideas. 5. Use “and” instead of “but.” 6. Think of team aspirations Vs team expectations In summary: As leaders, we don’t have to have all the answers. All we need is to come up with some good questions. As we ask these questions and listen without rejecting any ideas in our conversations with others, we facilitate trust and co-create brilliance. In this process, we and our teams also release less cortisol (the stress hormone) and start releasing more oxytocin (the love hormone or neurotransmitter). This bonding creates a vision of shared success in any conversation, which in turn creates better relationships and an improved culture throughout the organization. That is exactly what I want to do with our Long-Range Planning Committee. I would like to listen to your ideas, so together we can create a basic and
brilliant mission statement, generate a 3-5 year vision (goals) and decide which values our members, our board of directors and our staff should live by. We underwent this process in 2012, but according to leadership experts, it should be reviewed every 5 years minimum. So I am asking for each member to email me one thing that you feel we do well in EPAB and one thing that you think we could do better. My email address is scuartasbichomes@gmail.com. Then, I will be asking a few people to assist the Executive Board in revisiting our vision, mission and values, which will require about 8 hours of deep thinking and conversation spread out during a month’s time starting in August. The Long-Range Planning Committee will be comprised of the Executive Board and a couple other members. Other than that, the economy is doing amazingly well, the housing demand is hot, we have some labor issues and lot shortages, but we are blessed to live in TX and better yet, in El Paso, TX. Thanks for your membership and support of all our events. Please continue to participate -help a member and recruit a new member if you can.
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Executive’sMessage
PRINT & INTERNET PUBLISHING
Legislative session ends House Bills directly impact home builders, owners
Ray Adauto Executive Vice President El Paso Association of Builders
The Texas legislature has ended its regular session and awaits word on a special session if needed. The legislature meets only once every two years for 140 days and in those days’ crams literally thousands of bills in the session hoping to make it into law. This year the Texas Association of Builders (TAB) had a lot of work to do on bills that would harm new home construction. There were also some bills that TAB supported and helped push through. Overall it appears that TAB, and therefore the members, did well. One bill that has immediate impact to local members is HB 852, Permit costs.
HB 852 was introduced to eliminate using asked values of a house or building to charge a permit fee. Using these “values” means that today’s contractor is paying much more money for a permit than just a few years back, even though the property itself is the same size and on a nearly identical size lot as a decade or more ago. What changed? Greed and progressive calculations. The City of El Paso for instance had used the square footage method of charging for a building permit for decades, but because the municipality found that this fee (i.e. tax) was a forced payment in order to proceed building and so increases would not or could not be challenged. The municipality found gold and they have used that gold to send to the general fund or other departments. Proof of this is the amount that the BP&I department budget would have surplus after surplus and the money was sent elsewhere. Now let me be clear that we have challenged this fee structure for years as well but each time we’ve attempted to get them reduced the municipality has found accounting methods to justify the fee. Suddenly every permit required the costs of a municipal attorney, paper costs,
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printers, soap, paper towels, ink, cleaning supplies….oh well you get the idea. A municipality was able to continue to charge a “value based” fee because no one could afford to challenge it. Until now. It should be good for the builders who are building smaller homes or doing smaller remodels or smaller construction projects. It basically will make the municipality have to return to the tried and true “size” value based on square footage. We need to ensure that municipalities adhere to the new law and go by a more realistic and fair method, whatever it is. Not all of the bills we supported or introduced were passed but that is the way things go in Austin. We will try again in two years to resurrect them and hope to get them passed. I want to point out that it is because of support and lobbying from our Texas Association of Builders that this has made its way to the governor. A single builder couldn’t ever do this alone. It’s another reason why being a member of the EPAB/TAB/NAHB is vital to your success. It should be a great way to recruit new members.
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NationalOutlook NAHB Chairman on Trade Developments with Mexico and Canada
Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn., issued the following statement after the White House announced the U.S. would remove tariffs on steel and aluminum imports from Canada and Mexico: “NAHB commends President Trump for removing tariffs on steel and aluminum imports from Canada and Mexico. This will provide momentum for Congress to ratify the United States-Mexico-Canada Agreement (USMCA), which holds the potential to lift the housing economy. “Now that the White House has achieved substantial progress in advancing the USMCA, we urge the administration to focus its efforts on resolving the softwood lumber trade dispute with Canada. Tariffs averaging more than 20 percent on Canadian softwood lumber shipments into the U.S. are exacerbating price volatility and needlessly driving up housing costs. A prompt resolution to this ongoing trade conflict with our neighbor to the north will help to ease ongoing housing affordability concerns.”
Single-Family and Multifamily Starts Post Solid Gains in April Total housing starts rose 5.7 percent in April to a seasonally adjusted annual rate of 1.24 million units from an upwardly revised reading in March, according to a report from the U.S. Housing and Urban Development and Commerce Department. The April reading of 1.24 million is the number of housing units builders would begin if they kept this pace for the next 12 months. Within this overall number, singlefamily starts increased 6.2 percent to 854,000 units. The multifamily sector, which includes apartment buildings and condos, increased 4.7 percent to a 381,000 pace. “Builders remain cautious due to affordability concerns,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn. “But as our builder confidence survey shows, their expectations indicate consumers will respond to lower interest rates moving forward and the housing market will continue on a slow, steady climb.” “Though an overall encouraging report for the month of April, the soft permit numbers for single-family housing indicate concerns about housing affordability and construction costs,” said NAHB Chief Economist Robert Dietz. “Builders continue to focus on managing home construction costs as they try to meet growing housing demand. NAHB analysis of first quarter permit data show growth in more affordable exurban locations.”
TE X XA S ASSOCIATION O OF
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2 0 1 9 - 2 0 2 1 TA B C O N T R A C T S T E X A S A S S O C I AT I O N O F B U I L D E R S I S H E R E TO H E L P P R OT E C T YO U ! Updated TA AB Contracts will reflect the most recent legislative changes affecting the homebuilding industr y in Texas. TAB A ’s current Texas Residential Construction Cont o racts Package subscription will expire August 31, 2019 9.
www.TexasBuilders.orrg
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FinancialOutlook World Growth Is Increasingly China Dependent Elliot Eisenberg Economic & Policy Blog
The global economy got off to a weak start in 2019. Equities went into a tailspin, the US government was closed for over a month, the weather was terrible and trade disputes seemed intractable. But of late, things have turned around. The government is open, the US and China seem on the brink of a trade deal, domestic stock markets are at an all-time high, and Q1 GDP came in at a surprisingly strong 3.2%. That said, the global economy really is cooling. At the start of 2018, there was broad-based synchronized global expansion, the broadest since at least 2010. Recently, forecasters have yet again reduced their growth estimates for 2019 and 2020. It’s tempting to blame President
Trump for the reversal. After all, the global deceleration began around the time President Trump raised tariffs on washing machines and solar panels and then worsened as America slapped tariffs on steel and aluminum, and then on an increasing range of Chinese goods. But there is more to the global swoon than Trump’s trade war. The current global downturn bears a striking resemblance to the economic troubles of 2015. Then too manufacturing faltered and markets and also swooned. While it was partly due to the collapse in oil prices, China also played a big part. After massively stimulating its economy during the global financial crisis of 2007-08, by 2015 China’s leaders sought to wean their economy off easy credit, which had grown at mind boggling rates from 2009-14. At the same time, China also liberalized its financial markets, which led to massive capital flight and a stock market collapse. Financial turmoil radiated outwards, threatening to tip large swaths of the world economy into recession.
China quickly reversed itself and reimposed capital controls and their stimulus taps were turned back on; monetary policy was eased, and their deficit skyrocketed to well over 10% of GDP. Having survived that close call, China once again began to focus on stemming the ever-growing pool of fiscal red ink. To that end, lending to highly-indebted firms was restricted, and the government embarked on a bout of fiscal tightening on a scale rarely seen. Like clockwork, the deficit fell, but domestic demand weakened along with imports. In short, the world economy’s recent ups and downs are most closely related to China’s onagain off-again struggles to reform its economy and curb unruly borrowing. China should not matter as much as it does. Its tight capital controls keep its financial links with the rest of the world modest and it’s not yet the engine of global demand the way that the United States is. The problem is that the rest of the world is simply unprepared to lean against any Chinese headwinds. Interest rates remain at extraordinarily low levels,
and as a result the United States has little room to cut rates while Japan and Europe have none. While fiscal policy could pick up the slack, Europe is unable to coordinate their policies and thus nothing gets done, while the US is already running unconscionably high deficits. Fortunately, China is once again turning on the stimulus taps, and in the process boosting growth and business and consumer sentiment. As a result, the current slowdown may well be as fleeting as that of 2015, if you even remember it. That said, these episodes show that the developed world has essentially chosen to put itself at the mercy of the fiscal management of the Chinese Communist Party!
Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70-word economics and policy blog can be seen at www.econ70.com.
EventsOutlook First Home Saturday welcomes BIG crowds The 2019 First Home Saturday presented by Sierra Title was held at Bassett Place on May 4. The shopping center, one of El Paso’s first malls, didn’t fail to bring in the crowds due in part to having the only IMAX theater that was showing the megahit Avengers, Endgame. The date also coincided with the Cinco de Mayo shopping sales. All in all, these factors plus moving the event to the Target end of the mall helped us with a great crowd. “What I can tell you is that we had a tremendous response. We met a lot of people and have a book of leads,” said Hector de la Canal, representing Loyalty Homes. “We did really well,” he said to the Outlook. Our presenting partner Sierra Title had a great event as well. “We enjoy partnering with the Association on this event, for the consumer as well as the member vendors that are here,” said Angelique Roman. “Our goal for First Home Saturday is to make us visible and doing this at the mall is really good for us,” she continued. Ted Escobedo from Snappy Publishing created First Home Saturday several years ago and generously turned the event into an Association event. “Partnering with the EPAB on this event is an ideal opportunity to help consumers take their first step in prchasing a home while helping to promote our asssociate and builder members” he said. Ted has spent hours and hours of time prepping for the event. “People are amazed at how nice this event is, how organized, yet it wouldn’t happen without Ted and his crew,” said Ray Adauto. “Ted has generously given the reigns over to the EPAB and there is nothing like it,” he concluded. Asking Jim Easley from Citizens Loan Center praised the event. “We had a great time at the event and more than anything Arthur Andrade came back full of leads, and out of giveaways. That’s a good sign how successful the event was,” he said. The draw for the event was the chance to win $100,000.00 from a prize vault whereby the exact numbers had to be used in order to open the vault. “We didn’t have a winner today, but where else can anyone have a free chance to win that kind of money,” said Brenda Aguirre from Rocky Mountain Mortgage. “No where else today,” she exclaimed. Adding to the fun mood was El Paso DJ Services, Mike Armstead. “I do a number of corporate events and working with the Association is always fun for me and it looks like everyone else here,” he told us. Our thanks to our showcase vendors. Sierra Title, Cadence Lending Group, TFCU, First Light FCU, Solar Smart Living, Jack White Specialties, Pacifica Homes, Palo Verde Homes, Zia Homes, Rocky Mountain Mortgage, ICON Custom Builder, Winton Homes, BIC Homes, Loyalty Homes, Citizens (Bank) Loan Center, Tropicana Homes, and Santana Homes. Special thanks to Steven Herrera at Bassett Place for all his help. Stay tuned for the next First Home Saturday.
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EPABMembers&Services Builder-DeveloperMembers BUILDER & DEVELOPERS Bain Construction Scott Bain 915-852-8620 Althon Investments, LLC Jose Luis Martin (915) 532-3100 Bella Vista Custom Homes, Inc. Edgar Garcia 915-433-4854 BIC Homes Antonio Cervantes 915-855-8236 Blue Sage Homes, LLC Jaime Gonzalez 915-787-9175 Blue Star Construction Carlos Villasana 915-217-6003 Carefree Homes Richard Aguilar 915-590-8511 Casas De Leon, LLC Nick Bombach 915-584-5050 Cisco Homes LLC Francisco Arroyos III 915-633-8002 Classic American Home Priscilla Hernandez 915-593-7707 Crown Heritage Homes Lydia Mlouhi 915-252-8193 CS Custom Homes Steve Gonzalez 915-346-1107 Cullers & Caldwell Builders John Cullers 915-584-5600
Cullers Homes Jason R. Cullers 915-584-5600 D B Innovations LLC Dan Berry (915) 283-7558 Dawco Home Builders Walter O. Lujan 915-587-5267 Deal 2 Deal Custom Homes Delton Deal 915-217-9233 Del Rio Engineering, Inc. Sal Masoud 915-833-2400 Diamond Homes, LLC Valerie Baquera 915-449-9044 E. Valencia Land Development LLC Eddie Valencia 915-855-0622 Eclat Homes & Designs Veronica Guerra (915) 630-6729 Edward's Homes, Inc. Eduardo Fernandez 915-849-8819 EPT Bella Custom Dream Homes Leti & Javier Navarete 915-779-4553 EPT Land Communities David Bogas 915-838-8100 Everest Homes Edmundo Dena, Jr. 915-855-8633 Fortune Custom Homes Javier Andrade 915-856-7795 Gaddy Construction Charles Gaddy 915-581-3966
AssociateMembers 3RD PARTY INSPECTIONS Vision Consultants, Inc. Kelly Sorenson 915-227-2100 APPLIANCE DISTRIBUTORS Builders Source Appliance Gallery Sandra Lucero 915-775-1000 Morrison Supply Sam Shallenberger 915-778-3086 APPLIANCES GE Appliances Christine R. Villanueva 806-252-3683 Whirlpool Gwen Walker ASPHALT PAVING Alpha Asphalt Gabriel Chavez 915-252-6244 ASSOCIATION El Paso Mortgage Bankers Association Brenda Aguirre 915 204-3867 Greater El Paso Assoc. of Realtors Jason Sanchez 915-779-3521 Greater El Paso Chamber of Commerce David Michael Jerome 915-534-0522 ATTORNEYS Firth, Johnston, Bunn & Kerr Jay Kerr; Victor Firth 915-532-7500 AUDIO El Paso Audio Video by Design Joe Gutierrez 915-346-9118 AUTO HOMEOWNER INSURANCE TAB endorsed State Auto (Association Insurance Solutions) Russ Sartain, Danner Bethel 512-203-2910
BATHROOM RENOVATIONS Rebath of El Paso/Las Cruces Lisa Walling 915-633-8101
BUILDER REBATES Home Sphere, LLC Chris Hoag 214-425-9482 BUILDING MATERIALS BMC Select David Quintana 915-218-5816 Boise Cascade Mike Flores 915-525-6037 DWS Building Supply Sabrina Voorhies 915-351-7300 E.F. Building Materials, Inc Efren Fraire 915-593-1301 El Paso Building Materials Ken Wade 915-549-1170
Pacifica Homes, Inc Juan Jose Vasquez 915-857-1855 Padilla Homes Misael Navarrete (915) 833-3839 Palo Verde Homes Edgar Montiel 915-584-9090 Pointe Homes Carlos Villalobos 915-790-1515 Porter Homes Albert Porter 915-833-3597 R.C. Baeza & Associates Robert C. Baeza 915-857-1818 R.E. Welch Contractor Gordon Welch 915-778-9977 Rassette Homes, Inc. Donald Rassette 915-585-3330 Rio USA Fredduy Klayel 915-526-2885 Rosewood Design and Build Brianna Barnes (915) 730-4747 Santana Custom Homes Fernando Santana 915-694-4256 Southwest Land Development Services Doug Schwartz 915-592-0290 Spanish Oaks Custom Homes Juan R. Saenz 432-238-3090 The Heritage Group David Bingham
915-598-6606 Trejo Construction Co Juan Trejo 915-637-5193 Tropicana Building Corp. Bobby Bowling IV 915-821-3550 Tropicana Development Greg Bowling 915-757-1802 Tropicana Homes Randy Bowling 915-821-3550 Tropicana Properties Demetrio Jimenez 915-755-9113 Uptown Homes Residential, Inc. Francisco Baquera 915-240-4996 Vallance Construction LLC Oswaldo Prieto (915) 245-8580 Villagi Homes, LLC Kristi Eddings 915-449-8570 Vista del Sol Archetectural Design Luis J. Lopez (915) 494-1988 Will Harvey Development Will S. Harvey 915-584-8242 Winton/Flair/Accent Homes Herschel Stringfield 915-584-8629 Zia Homes of El Paso, LLC Preston Brown 915-490-9525
Appears Alphabetically by Service or Product
BANKS/BANKING SERVICES Bank of Texas Ray Owen 915-313-6720 City Bank Texas Bob Kotarski 915-833-0267 1 Citizens Loan Center Jim Easley 915-275-0715 First National 1870 Ernesto Avila 915-881-6702 Vantage Bank Josie Cantu 915-594-3404 Western Heritage Bank Kathy Carrillo 915-782-2400 WestStar Bank David Osborn 915-747-1640
BRICK Acme Brick Company Brent Smith 915-859-9171
Guel Construction Rudy Guel 915-595-0979 Hakes Brothers LLC Chris Hakes 575-373-1120 Hanson Asset Management, LP Russell Hanson 915-842-0111 Homes by Design Leslie Driggers Hoard 915-525-4765 Hunt Communities, LLC Kathy Parry 915-298-0490 ICON Custom Builder, LLC. Carlos Garcia 915-859-3713 Industrial Realty Group Incorporated Brent D. Harris 915-877-4300 JER Custom Homes, LLC Jorge E. Rodriguez 915-929-8420 Lloyd Hamilton Contruction Lloyd Hamilton, III 915-588-8558 LMJ Construction Co., LLC Mike Lopez 915-855-2323 Loyalty Homes Gustavo Loy 915-471-1894 M A Builders & Design, LLC Mustafa Ali 915-587-9566 Maravilla Homes Victor Robles 915-328-8599 Metro Homes, Inc. Judith Arrunada, Fernando Torres 915-538-2497
Franklin Building Materials Cristina Sheldon 915-855-3859 Simpson Strong-Tie Company, Inc. Ken Donham 505-991-4719 Lowes Home Improvement Johnny Rodriguez 915-755-9155 McCoy's Building Supplies Doug Danner 915-751-8261 L & P Building Supply Denise McConnell 575-527-8000 Foxworth Galbraith Lumber Dan Villarreal 915-779-7777 CABINET MANUFACTURING J. B. Laminates Gina Rodriguez 915-886-5510 CABINETS Cabinet Masters Mike Robles 915-256-5012 David Hernandez Cabinets David Hernandez 915-342-7847 Eagle Custom Cabinets Juan Benabidez 915-820-8532 Bassett Woodworks Danny Murillo 915-855-2184 CIVIL ENGINEERS Moreno Cardenas Inc. Roberto Moreno 915-532-2091 CONCRETE Agustin Favela Concrete Agustin Favela 915-822-0375 Jobe Materials, LP Charlie Tellez 915-298-9900 Oropeza Concrete Angel Oropeza 915-873-7391 GCC Sun City Materials,LLC
Antonio "Tony" Chavez 915-565-4681
512-796-1205
CONCRETE & LANDSCAPING MATERIAL GCC Sun City Materials, LLC Antonio “Tony “ Chavez 915-565-4681 Jobe Materials, LP Charlie Tellez 915-298-9900 Mini Concrete Materials Joe Soto 915-852-4468 MTI Ready Mix, Inc. Tony Mullen 915-859-5767
CPA Beasley, Mitchell & Co., LLP Brad Beasley 575-528-6700 James L. Ellis, CPA, PC Jim Ellis 915-593-7070 915-598-8631 Pate & Appleby, LLP Richard De Santos 915-532-8000 SBNG, P.C. Tyler Smith 915-544-6770 Randall Smith, CPA Randall Smith 915-225-5200 915-533-8266
CONCRETE ACCESSORIES & MASONRY-LANDSCAPE Border Construction Specialties Ricardo Yvellez 915-566-1688 CONCRETE CONTRACTOR Felipe Rocha Construction Agustin Favela Concrete Oropeza Concrete CONCRETE WORK -CURB Big A Construction Thelma Vasquez 915-838-6611 CONCRETE WORK-POST TENSION J & H Concrete & Post Tension Jorge Herrera ‘ 915-581-3103 CONSULTING, COACHING AND TRAINING Senpai Training and Development Leonardo Corral 915-303-0743 CONSULTING/ENGINEERING LOI Engineers Bernardino Olague 915-781-1532 915-871-1190 CORPORTATE RETIREMENT PLANS Bukaty Financial Companies Group Ruth Rivera
CREDIT UNION First Light Federal Credit Union Lorenzo Revelez 915-225-0581 GECU- Greater El Paso Credit Union Danny Galindo 915-774-4733 TFCU Yolie Melendez-Estrada 915-843-8328 CUSTOM PADS, LANDSCAPING, CUSTOM AQUARIUM, BUBBLE WALLS The Dorian Group/Ocean Gallery USA Miguel Angel Mercado 915-778-5111 DESIGN & BUILD EZE-R-DESIGNS Leticia Mata 915-329-5102 DISPOSAL HAULING Demcon Disposal Management, LLC Maria Elena (Nena) Gomez 915-577-9477
2019Issue5
BuildersOutlook
DOOR SHOP/ MILLWORK SUPPLIER Trim Team 915-856-0791
GRADING Juan Carlos Perez Grading Juan Carlos Perez 915-252-4036
DOORS Masonite International Jesse Carlson/ Bob Westby 480-271-5553 Franklin Door and Trim Jesse C. Brown 940-210-0450
GRANITE COUNTERTOPS Magicstone Marco Gomez 915-843-2500 Quality Granite Hector Porras 915-892-1340
DRY WALL Barraza Drywall Corp. Ignacio Barraza 915-502-1732 Jose Moreno Dry Wall Jose Moreno 915-922-8972 S & J Drywall, LLC Yair Jalil/ Sergio Jalil 915-694-7024
GRANITE/QUARTZ COUNTERTOPS Stone City Rocks Chris Baca 915-246-7614
DUMPSTER RENTAL/SPRAY FOAM INSULATION 915 Siteworks, LLC Hugo Jasso 915-859-3713 ELECTRICAL CONTRACTORS Allbrite Electrical Carlos Nunez 915-630-9432 Castillo Electric Jose Del Val 915-877-3335 Elizardo Garcia Electric Elizardo Garcia 915-333-9675 Haskins Electric Charles B. Haskins, Jr. 915-629-9196 IES Residential Joshua Garnica 915-356-5644 Saldivar Electric, Inc. Martin A. Saldivar 915-778-7085 ENERGY STAR RATER Senercon Javier Ruiz 915-892-0547. ENGINEERING CEA Engineering Group Jorge L. Azcarate 915-544-5232. Conde, Inc. Conrad Conde 915-592-0283. TRE & Associates Linda Troncoso 915-852-9093. EVENT VENUE/CATERING 150 Sunset Danny Heredia 915-585-0801 EXTERIOR FOIL SHEATHING Powerfoam Insulation Arnie Pedersen 972-299-5556. FIREPLACES/INSTALLATION Jack White Building Specialties Claudia Lardizabal 915-855-8630 FLOORING Bordertown Carpets Brian M. Abraham 915-522-8993 Carpet Warehouse Erez Belkin 915-565-7847 Edgar's Flooring Edgar Enriquez 915-626-4865 FOAM INSULATION New Era Foam George Tollen 915-861-6683 FOUNDATION REPAIR & STABILIZATION G & G Enterprises Gen. Contractor Juan F. Garcia 915-726-8995 FRAMING Segura Framing Erika Segura 915-407-9400 Sergio Herrera Framing Sergio Herrera 915-328-6024 GARAGE DOORS Garage Doors and More Miguel Moran 915-831-9828 Sun City International Doors Jorge Carmona 915-591-1423 915-222-8607
GYM Forge Factory Strength & Conditioning Edmundo Portillo 915-549-9145 HOME FURNISHINGS Copenhagen Imports Flemming Carlsen 915-581-8897 915-584-7769 HOME WARRANTY 2-10 Home Buyers Warranty Leslie Schey 915-242-7699. 303-306-2222 Centricity Brent R. Morgan 800-749-0381X4790 Home of Texas Amanda Eason 210-540-7891 StrucSure Home Warranty Scott Whisenant 210-232-3947 HVAC 4 Tech A/C Service Enrique Hernandez 915-519-7239 A C Refrigeration, LLC Angel Cabrera 915-820-8503 Go Pro Refrigeration Humberto Diaz Parra's A/C and Heating Service Aureliano Parra 915-401-9667 Polar Mechanical LLC Francisco Amezquita 915-694-8313 Startech Heating and Air Conditioning Luis Procter 915-757-1982 Wolf Air Arturo Alcantar 915-694-8214 HVAC EQUIPMENT Lennox Industries Brandon Walker 818-932-5063 Goodman Mfg. Jorge Guajardo 915-219-3896 HVAC SALES/INSTALLATION Belmont's Air Conditioning, Inc. Rafael Belmonte 915-778-7399 HVAC Supplies Hercules Industries John Chaney 915-778-9377 HVAC/ROOFING Diaz Services, Inc. Emmanuel Diaz 915-822-0039 I T & WEB DESIGN Cognent, Inc. Martin Paredes 407-809-4417. INSULATION New Start Insulation Jose Carreon 915-256-2371 INSURANCE Dominguez Insurance Agency Victoria Dominguez 915-598-3500 Farmers Ins. Mercedes Ruiz Agency Mercedes Ruiz 915-860-1000. Great American Insurance Group Julie Tomlinson 513-412-4921 Joe Bernal Ins. & Financial Services, Inc. Joe M. Bernal 915-542-0900. INSURANCE - RISK MANAGEMENT HUB International Luis Rosas 915-206-6023
INSURANCE AND BONDING C. D. Lee/Britton Insurance & Bonding Anthony Landavazo/Lisa Daniels 915-595-3393 IRON WORK PRODUCTS Area Iron & Steel Works, Inc. Fred L. Edmonston Jr. 915-833-9494 De la Torre Ironworks Alfredo De La Torre 915-328-4933 JANITORIAL SERVICES Amelia's Janitorial Services Amelia Gomez 915-867-8513 Service Master Commercial Heidi Avedician 915-525-5535 LEGAL SERVICES/TITLE COMPANY David J. Ellis Fee Office for Sierra Title David J. Ellis 915-566-2666. 915-566-0111 LIGHTING City Lights Thomas Brown 915-533-6045. 915-533-6096 Designer's Mart Valerie Edmiston 915-778-9223 LIGHTING & BATH FIXTURES Ferguson Enterprises Inc. Albert Holguin 915-231-5836. 915-231-9357 LOW VOLTAGE WIRING Prewire of El Paso, Inc. Steven Drury 915-598-4937 LUMBER 84 Lumber Ernie Chavez 915-584-8447 MIRROR, SHOWER DOOR, STOREFRONT,AUTOMATIC DOORS & CURTAIN WALLS Performance Glass & Aluminum Hector Hernandez 915-592-5583 MOLDING & LUMBER Adams Moulding & Lumber Tom Swahlen 915-584-1440 MORTGAGE COMPANIES Cadence Lending Group Carolyn De Leon 915-779-1633 915-706-2649 New American Funding Tania Guzman 757-831-7322. Patriot Mortgage Randy Bowling 915-757-9500 Rocky Mountain Mortgage Company Dean Inniss 915-593-3111 Supreme Lending Lisa Wren 601-549-6768 Commerce Mortgage Stephen Sepulveda, Gilbert Pedregon 915-209-3189 NEWSPAPER El Paso Times Sal Hernandez, Justin Riley 915-546-6244. 915-546-6406 PAINT DISTRIBUTOR Dunn-Edwards Paints Nathan Gordon 915-855-7535 915-855-8168 Sherwin Williams Paint Cruz Lopez 915-532-6921. PAINTING A Plus Remodeling & Repairs Martin Arroyos 915-474-6548 J. C. Balcorta Painting Cruz Balcorta 915-731-4565 Ramon Romero Painting Ramon Romero 915-487-0465 Rey Construction Manuel Reyes 915-252-2238 X Construction Emmanuel Chavarria 915-820-3392 VMP Painting Victor Prieto 915-407-6231
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PLASTERING J. F. Plastering Juan Florez 915-474-7137 Alvarado Plastering & Stucco, LLC Jorge Enrique Alvarado 915-691-3870 PLUMBING Desert Quest Plumbing Hector Gonzalez 915-253-4908 Q Martins Plumbing Jose Martinez 915-240-5218. W.W. Sales Eric Hoppes 505-463-8204 PLUMBING & IRRIGATION SUPPLIES-DISTRIBUTORS Baron Supply David Trammell 915-886-3697 Moen Frank Graf 505-238-2731 Sun City Winnelson Dean Moore 915-532-1600 El Paso Winnelson Rene Goldfien 915-778-4640.
MAK Roofing & Construction Felix Vizarreta 915-691-0532 Alden R & R Services, LLC Alejandro Dena 915-213-8634 Hernandez Roofing Concepcion Hernandez 915-222-1797 Imperial Construction Alexandro Garcia 915-222-3838 RGR Roofing, LLC Mario Rodriguez 915-329-1001 USA General Contractors Javier Olmos 915-633-3339
TITLE INSURANCE Prosperus Title & Escrow Alexandra Jade Hedrick 915-288-2462
ROOFING PRODUCTS ABC Supply Co., Inc. Larry Eck 915-533-0645 Eagle Roofing Products Scott Aguilar 928-220-3899.
UTILITY Texas Gas Services Maria Ortiz 915-680-7288
SANITATION & FENCE United Site Services Ramon Armendariz 915-330-2318 SELF STORAGE Remcon Self Storage Will Harvey 915-833-2399.
PORTABLE RESTROOMS Sarabias Blue Sanitation Monica Brown 915-544-9022. 915-533-3108 Porta- Jons
SHUTTERS Loyas Shutters Alfredo Loya 915-999-7799
POST TENSION Post Tension Steel Dennis Moore 915-474-0180. 915-532-0119
SOIL TESTING Soil Mechanics Lorenza Escareno 915-433-2720
PREWIRE Southwestern Prewire Joe Trejo 915-549-2611
SOLAR PANELS Border Solar Javier Ruiz 915-613-4168 Solar Smart Living Larry Perea 915-400-2995
PUBLICATIONS Homes of El Paso Riley Stephens 915-585-1000 Su Casa Magazine Edwin Rosario 915-355-7190 PUBLISHING SERVICES Snappy Publishing, LLC Ted Escobedo 915-820-2800 READY MIX MTI Ready Mix, Inc. Tony Mullen 915-859-5767 REAL ESTATE SERVICES ERA Sellers & Buyers Karla Rayos 915-585-2222 Team Juan Uribe, LLC Juan Uribe 915-479-5151. Home Pros Real Estate Group Penny Moore. 915-585-8806 Legacy Real Estate Services Patrick Tuttle 915-231-9994. Leon Real Estate Jorge Leon 915-726-7637 Century 21 The Edge Scott Kesner 915-772-0553 Harris Real Estate Group Lane Harris 915-443-8423 Hector De La Canal Real Estate Group Hector De. La Canal 915-630-0686 Keller Williams Susan Flores, REALTOR 915-209-1701 Keller Williams Mo Goodarzi, REALTOT 915-549-3027 Majestic Realtors Patti Musshorn 915-779-5740 Minerva Al-Tabbaa Realtor Minerva Al-Tabbaa 915-740-3463 Bella Vista Realty Grisel Ortega 915-491-2056 RES. & COMM BUILDING PRODUCTS Massey Johnson Josie Ledesma 915-487-3359 ROOFING H P Roofing & Construction Heriberto Prieto 915-727-2461
STONE VENEER Value Stone Isabel Chacon 915-474-4289 STORMWATER/SAFETY ESS Environmental and Safety Solutions Jose L. Garcia Ramirez 915-775-1171 915-775-1174 STUCCO EDLR Platering Eduardo De La Rosa 915-203-8979 JFM Enterprises, Inc. Jaime Flores 915-255-9945 SURVEYING ENGINEERING Barragan & Associates Benito Barragan 915-591-5709 TESTING & ENGINEERING CQC Testing and Engineering,LLC Jaime Rojas 915-771-7766 TILE & NATURAL STONE Interceramic Tile & Stone Gallery David Holguin 915-593-7357 TILE INSTALLATION CMF Carlos Munoz 915-633-3517 Miguel Sanchez Cano 915-226-2148 TITLE & ESCROW COMPANIES Del Sol Title Co. Hector Phillips 915-838-8000 Lone Star Title Co. of El Paso Aaron Rich 915-545-2222 Sierra Title Company Angelique Roman, Marielsa Pulido 915-544-3322 Stewart Title of El Paso Cindy Bilbe 915-225-8200 WestStar Title Rachel Valles 915-849-5537 Texas Title Company Steve Raney 915-593-3400
TOTAL OFFICE SOLUTION SOURCE Spectrum Technologies Miled Daou 915-781-2000. 915-781-2288 TRUSS El Paso Truss Luis Mendiola 915-751-0025 Franklin Building Materials, Cristina Sheldon, 915-855-3859
VEHICLE DEALERSHIP Rudolph Chevrolet Mike Ruffin 915-544-4321 WASTE DISPOSAL El Paso Disposal Irma Parsons 915-772-7495 WATER SOFTENERS Rebecca Estrada 915-307-9183 WATER REMOVAL Jimmy Garza Emergency Water Removal Jimmy Garza 915-562-1123 WINDOW TREATMENTS Southwest Décor El Paso Corporation Chris Matthews 915-594-9240 Marlo Building Services Roberto Martinez 915-832-1121 915-757-0774 WINDOWS Pella Windows Jason Bates 915-833-3066 Sun West Windows and Glass Ernie Hernandez 915-383-2201 WROUGHT IRON ENTRIWAYS The Iron Snail Inc. David Zuniga 915-204-7215 SUBCONTRACTOR Rito Magallanes 915-228-5968 Serrano's Construction Juan Serrano 915-288-0398
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BuildersOutlook
2019Issue5
TrendOutlook Baby Boomers:
A
growing number of baby boomers are choosing not to downsize in retirement. Instead, they’re opting to remain in the homes where they raised their children, USA Today reports. But their reluctance to move is contributing to low inventory across the country, says realtor.com® Chief Economist Danielle Hale. Baby boomers “have refused to follow what the traditional expectations were,”
Who Needs to Downsize?
Barbara Risman, a sociology professor at the University of Illinois at Chicago, told USA Today. Baby boomers, mostly between the ages of 54 to 73, are working longer and, therefore, putting retirement off longer than previous generations. Their millennial children are also increasingly living at home with them and staying well into adulthood. Baby boomers also may be struggling to find a smaller home to move into. Housing analysts have pointed to a dire housing shortage of less expensive entry-level homes—the type downsizing baby
boomers could be seeking. The shortage has caused home prices to increase, and that may be erasing some of the incentive to downsize, housing analysts say. Fifty-two percent of baby boomers say they’ll never move from their current home, according to a Chase Bank survey of 753 boomer homeowners conducted this year. Separately, 43% of 45- to 65-year-olds say they plan to remain in their current home through retirement, according to a 2017 Ipsos/USA Today poll. About 20% of Americans 65 and older are working or looking for jobs, up from
12.1% in 1996, according to Labor Department data. “Baby boomers don’t want to become old in a way that has negative connotations,” Risman says. “Remaining in one’s old house is part of remaining in the prime of one’s life longer.” And downsizing may be losing its appeal. For baby boomers who do plan to move, 43% say they want their next home to be the same size as their current one. Twenty-two percent say they want their next home to be even larger, according to a January survey of 50- and 60-year-olds by Del Webb.
2019Issue5
BuildersOutlook
13
MembershipOutlook Upcoming Events June 13 11:00 Board Meeting 12:00 General meeting
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BuildersOutlook
2019Issue5
LegislativeOutlook Permits&Inspections
Newly signed law to affect permit fees Expect changes immediately H.B. 852 by Rep. Holland (Sen. Fallon) BACKGROUND Under the Texas Constitution, regulatory fees assessed by a municipality that are not proportional to the operating costs of the program for which the fee is charged and that return more than what it costs to run the program associated with the regulation constitute an unconstitutional occupations tax. THE PROBLEM Despite these constitutional provisions, Texas municipalities frequently do not base the amount of building permit or inspection fees on the municipality’s
cost to perform these inspections. Instead, fees are calculated based on the cost or estimated value of the home itself. The cost to build the home is either provided to the municipality through mandatory disclosure of its construction cost, contract or sale price. In some cases, building permit or inspection fees are compiled via a chart promulgated by the International Code Council using estimated national construction cost averages. Requiring disclosure of the cost to build a home or its contract or sales price can result in a fee that is an unauthorized
occupations tax because these figures do not bear a reasonable relationship to the municipality’s cost of performing the services covered by the fee. Disclosure of these figures to taxing authorities increases the property tax burden on all Texans. This, combined with higher regulatory fees, creates a barrier to housing affordability and reduces the opportunity for homeownership. THE SOLUTION HB 852 prohibits municipalities from using the valuation or construction cost of a residential dwelling to determine the amount of permit or inspections fees
charged. HB 852 also prevents municipalities from requiring disclosure of information related to the valuation or construction cost of a residential dwelling as a condition for obtaining a building permit, unless required for FEMA National Flood Insurance Program participation. This new law is making the municipalities have to adjust the methods they are using for permit fees. In a conversation with Philip Etiwe the city of El Paso will probably be looking at charging a per square foot fee.
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VOL 2019 ISSUE. 5
BuildersOutlook
PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS: NATIONAL, STATE AND LOCAL HOME BUILDING INDUSTRY NEWS
6046 Surety Dr. El Paso, TX 79905 915-778-5387 • www.elpasobuilders.com
■ EXECUTIVE OFFICERS PRESIDENT Sergio Cuartas VICE PRESIDENT Edgar Garcia SECRETARY Sal Masoud EXECUTIVE VICE PRESIDENT Ray Adauto PAST PRESIDENT Edmundo Dena ■ COMMITTEE CHAIRS: ASSOCIATES CHAIR Luis Rosas GOVERNMENT AFFAIRS Sal Masoud GOLF TOURNAMENTS Sam Shallenberger FINANCE COMMITTEE Kathy Carrillo/Treasurer COMMUNITY OUTREACH Angelique Roman LAND USE Sal Masoud EDUCATION Patrick Tuttle INDUSTRY PROMOTIONS Ted Escobedo ■ ADVISORY TO THE BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr ■ BOARD OF DIRECTORS Builders: Jaime Gonzalez, Blue Sage Homes Lee Gillett, Classic American Homes Lydia Mlouhi, Crown Heritage Homes Dan Berry, D B Innovations,LLC Delton Deal, Deal-2-Deal Eder Gallardo, Edwards Homes Leti Navarrete, EPT Bella Custom Dream Homes Kathy Parry, Hunt Companies Samira Gonzalez, Icon Custom Home Builders Laura Loy, Loyalty Homes JJ Vasquez Pacifica Homes Trevor Turner, Rassette Homes Fernie Santana, Santana Homes Jacob Barde, Tropicana Homes Associates: Sandra Lucero, Builders Source John Chaney, Hercules Industries Luis Rosas, HUB International Jorge Herrera, J & H Post Concrete & Tension Joe Bernal, Joe Bernal Insurance Patrick Tuttle, Legacy Real Estate Service Aaron Rich, Lone Star Title
Johnny Rodriguez, Lowe's Randall Smith, Randall Smith, Cpa Justin Hahn, Rocky Mountain Mortgage Angelique Roman, Sierra Title Ted Escobedo, Snappy Publishing Patricia Martinez, Stewart Title ■ TAB STATE DIRECTORS Randy Bowling, Life Director Sam Shallenberger Edmundo Dena Gus Loy Don Rassette Luis Rosas ■ NATIONAL DIRECTORS Bobby Bowling, IV Demetrio Jimenez
Honorary Life Members Rudy Guel Brad Roe Wayne Grinnell Don Henderson Anna Gill Mark Dyer Sam Shallenberger Past Presidents Committed to Serve Don Rassette 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 Carlos Villalobos 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. © 2019 Builder’s Outlook is published and distributed for the
Insurance developed for builders. Developed for builders with the backing of the strongest insurance carriers serving the Texas building industry, our insurance program offers flexible coverage options and rates that are more competitive than ever. As an authorized member of Builder Agent Network©, we’re dedicated to providing builders and contractors with the best-in-class insurance programs, pricing, underwriting, resources and service. Product Portfolio Highlights t “A” rated carriers, several available t (- PêFSJOH Doverage for property damage that results from faulty, defective, or poor workmanship in your work. t (- -JNJUT PG VQ UP . . . Bvailable t Expanded policy form for commercial projects t Builder’s Risk master policies, monthly reporting, annual and one shots t Workers’ Comp - Two highly cost-effective programs t ExDFTT -JBCJMJUZ GPS $PNNFrcial (eneral Contractors t $PNNFrcial Umbrella El Paso, Permian Basin and Surrounding Area HUB International Insurance Services -VJT 3PTBT 915-206-6047 www.hubinternational.com
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