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2013 issue 12

EPAB New Leadership Installed Banquet honors members with special recognition The 66th annual installation and awards dinner was held at the Marriott El Paso hotel on Friday, December 13. The event culminated the year for the association as we handed out the Associate of the Year, the Builder member of the Year, Pat Cox award winner and an Honorary Life Member award. In addition this year we honored three pioneers of the association with the first ever hall of fame Pioneer Award. The festivities started with hosted cocktail compliments of MTI Ready Mix and host Tony Mullen. When asked about saying a few words to the assembled guest Tony was quick. “Merry Christmas to everyone, and have a great evening,” he said. That was the shortest speech of the night as we moved into the dinner prepared by the chefs at the Marriott. Guest dined on medallions of beef, Italian chicken breast, pan toasted red potatoes and steamed vegtables. The desert was classic Key Lime pie. The ballroom welcomed the nearly 300 guests in comfort and a classic elegance to witness the installation of the 2014 Board of Directors and Executive Officers in addition to learning the evening’s winners. Presenting the Associate of the Year was Angelique Roman from Sierra Title who announced WestStar Bank as the 2013 Associate of the Year. Accepting for the bank were Burt Blacksher and Henry Tinajero who along with WestStar Bank president Larry Patton received individual Star Awards. Next the Builder Member of the Year was announced by Mark Dyer, Past President from Winton & Associates. The award went to Edmundo Dena for his work as president for 2013. “It was a great year for the most part and I have to say that our board and executive gets a lot of credit for that,” Dena said. “I am humbled to have served and to get this award,” he continued. Mike Santamaria, Past President and last year’s Pat Cox Lifetime Award winner announced the 2013 award winner, Sam Shallenberger from Western Wholesale Supply. “I can say without a doubt in my mind that Sammy is so deserving of this award,” Mike told the Outlook. “I am feeling a little warm and fuzzy right now, a little emotional if you would at this award,” said Shallenberger. “It is the biggest award I’ve ever gotten, and I would like to say thanks,” he continued. The Honorary Life Member award is presented infrequently but the association couldn’t see holding off any longer as Rudy Guel announced the eighth recipient in the 66 year old

association. E.H. Baeza, Sr. was emotional as he stepped up to the podium to get the honor. He told the crowd that he was undeserving but very grateful and proud to be honored. “I want to thank all of you for this, I will treasure it,” Mr. Baeza told the crowd. At 89 years of age Mr. Baeza is an active builder and was president of the EPAB in 1967. “He attends our meetings and participates,” Rudy Guel told the audience. Several special awards were made to members. The Star Awards went to John Reich from Texas Gas; Bret Thompson of Foxworth Galbraith; Joe Bernal of Employee Benefits of El Paso; Frank and Isela Torres from GMF Homes; and Beverly Clevenger of Automated Division 6 Builders. Reich, who is retiring from Texas Gas in April, summed up his feelings by saying he was overwhelmed by the kindness and accolade. “I got to say that this one is a big surprise to me and I will proudly hang it on my wall,” Reich told us. “I never suspected or expected this award,” said a stunned Beverly Clevenger. “You do what you say you’ll do and never expect any sort of payment for doing it,” she said. The evening continued with the Pioneer Awards as each of the honorees or their family accepted the honor. George D. Thomas, son of George Thomas our posthumous honoree, accepted the award for the family. “I can tell you that we are so grateful to the association for honoring our father and for allowing us to be here with you,” said Mr. Thomas, an attorney in Dallas. “All of us know that there are so many builders and subs out in El Paso and other places because my dad taught them or hired them,” he continued. Pete Yegge, a childhood friend of Bob Bowling III, the next honoree, told the audience about the early years of Tropicana, and how Bob got started. “We were kids in school and here we are over fifty years later still friends and still doing business together,” Yegge told the Outlook. “I owe what I have to great people, my family and my lovely wife Paulette for all that we have, with special thanks to God for allowing me to do what we do,” Bowling said as he accepted the award. The last of the honorees was Jack Winton, owner of Winton and Associates, Inc. who was introduced by Edmundo Dena. “I am honored to have been selected as a Pioneer, and although I am in my 80’s I feel like I still have 80 more to give,” he told us. “My whole philosophy in life is to treat people with respect, honesty, and

Edmundo Dena

WestStar Bank

commitment to do the right thing,” he told the audience. He then went on to recite from memory the “Builders Prayer”, a beautiful prayer outlined in Mr. Winton’s book, “the House that Jack Built”. The evening continued into the early morning with music provided by Michael Armstead, who masterfully played the music for those who stayed to dance. Dozens of toys were donated by the guests and those will be distributed to needy children by the Junior Women’s Club of El Paso. Pema Garcia, president of the JWC thanked all the guests for the critical donation. “Our women will hand these out to less fortunate children right before Christmas. You all have outdone yourselves, thank you for the gifts,” she continued.

2013 EPAB Award Winners were: Builder Member of the Year, Edmundo Dena, Accent Homes (Pictured above) Associate of the Year, WestStar Bank (Pictured above) Pat Cox Lifetime Award, Sam Shallenberger, Western Wholesale Supply, Inc. Honorary Life Member, E H Baeza, Sr. More photos on page 7


Builders Outlook

2013 issue 12

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2013 issue 12


Builders Outlook

President’s Message | Edmundo Dena

El Paso Disposal

President, El Paso Association of Builders

So this is it. The end. The final column of my presidency. I always wondered what it would be like to come to the end of my term and how I would feel about it. I guess I can sum it up with this: I know enough now to actually know what to do. Interesting isn’t it that I would come to this and finally figure it out. As I talked with Greg Bowling about the feeling he said that he felt the same way, at least sort of. He told me that you come into the position with a lot of questions, nervous and at times wondering what you got into. Then about six months into the year things begin to flow and finally near the end you realize you are ok. I never thought being ok would be ok, but here I am and I’m ok. I feel like we did a lot and yet feel a sense of not doing enough. I told Ray that I know we did some spectacular things this year yet I failed in one I felt I just didn’t do enough, and that was retention of members. As the calendar moves into 2014 I realize that we will need to fill our membership back up, and with the direction that Frank Torres announced at his installation it will be a priority. I’m looking forward to his leadership with this initiative and will do everything I can to make sure we gain membership not lose it. This last column is hard for me because I have really enjoyed my time as president. I want to thank my family, especially my wife Claudia for giving me the time to do this. I owe so much to Jack Winton and Herschel Stringfield for supporting me at work. I also want to thank Mark Dyer for always asking if I needed help with anything. Tony Mullen and Ruben Orquiz out at MTI Ready Mix…you guys are special. To Margaret Adauto, thanks for allowing us to be ourselves and for working hard for us. You hear a lot but never repeat what you’ve heard, and that’s a special quality. To Ray, well I can only tell you that he has been there for me. He has guided me when I needed it; stopped me when I wouldn’t; and shared this wonderful adventure with me. He has been my concierge, my guide, my go to but most of all my friend. We are lucky to have him. So to all of you, to the advertisers, supporters, volunteers and to my boards, thank you for this year. I will now move onto the Immediate Past President role with great memories and greater friendships. Now go sell something.


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fax • 533• 6096

Thomas R. Brown, Owner


Builders Outlook

2013 issue 12


Ray Adauto, Executive Vice President EPAB

What a year this has been. Success after success with a chance of failure. Concerned about the economy and the state of the association, yet at peace with it all. The end of the year is a time for reflection and some healing I think. I can’t say that it’s my favorite time of year because of my personal journey during Christmas and New Year’s, but I can say that I find a certain joy to it. I know what I do like about this time of year: getting to say thank you to so many, and to see people happy and stressed all at the same time. Yes I get some satisfaction from both of those extremes as I look at and anticipate a new year. I reflect on this tired, old 2013 and can’t wait to see what comes in 2014. I also realize that I’ve grown another year older and with the odds stacked against me for another six decades of life I also begin to think about my mortality. I especially think of my mortality when I drive. I have had some close calls in the past, but folks the driving

Good wishes for new year, if we can make it through traffic during the holiday rush is outrageous. The much overflowed intersection of I10 and Hawkins is now super crowded with the opening of the Fountains at Farah. I think the city and the state should have collaborated to put a flying ramp directly onto Cielo Vista Mall from I-10 both ways. I also think that the exits onto Gateway West from the Fountains are dangerous, very short and not well thought out with the traffic coming off I-10 West. My best route to the Fountains is the back way, go all the way to Hunter then back towards those stores. It’s a tragedy waiting to happen the way it sits now. On the day I wrote this column I almost got hit when turning left onto Geronimo from Gateway East. I was in the middle lane, blinker on, and with every right to turn left or go straight. The car on my left was supposed to turn, no option. The guy driving must’ve been thinking about his girlfriend or something but he came within a camel hair of t-boning me. Glad he had quick reaction and glad I

did also. This intersection is notorious for those foreign plates to rush through without a thought. It’s not just the intersections anymore as people fly down the interstate, down the gateways’ and down Montana, Mesa or Alabama. Speed and lack of attention is a risky combo. Please, slow down. Please monitor your drivers as well. I can’t begin to tell you how many times I’ve called a member to see who’s driving one of their marked vehicles and tell them to have them obey school zones or to quit

cutting people off. Now days you can’t afford to rankle the public any more than you need to, and besides, your trucks are marked with your name on it. So if we survive the hassles of this season, and the traffic, then I should want to wish you a Merry Christmas and Happy New Year. Be safe, be prudent, and be all you can be. Share the joy with those who don’t have the how to, and those who just need to be remembered. We’ll all be better for that. My joy is having my grandkids Gaby, Matt and my two most wonderful Austin gifts, Ian and Adam. They join my other “grandkids” Tommy, CG and Nicki whom I love dearly (my great nephews and great niece). I hope we can get Ian and Adam into the family permanently soon, maybe by the time we read this. They are a blessing, just like my first five grandkids, that make this old guy have hope. Love to all, and God’s blessings.

2013 issue 12

Builders Outlook


Industry News Housing Markets Continue Slow Climb Back to Normal

Markets in 54 out of the approximately 350 metro areas nationwide returned to or exceeded their last normal levels of and housing activity, economic according to the National Association of Home Builders/First American Leading Markets Index (LMI), released today. The index’s nationwide score of .86 indicates that, based on current permits, prices and employment data, the nationwide market is running at 86 percent of normal economic and housing activity. The LMI figures for November showed that 55 housing markets were operating

at or above their last normal levels and the nationwide market was operating at 85 percent of normal growth. LMI data for the two months were released simultaneously because of the delay in collecting data during the partial government shutdown in October. “This index shows that most housing markets across the nation are continuing a slow, gradual climb back to normal levels,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “Policymakers must guard against actions that could impede or even reverse the modest gains of the past year.” Noting that smaller metros accounted for most of the 54 markets on the current LMI that are at or above normal levels, NAHB Chief Economist David Crowe said that “smaller markets are leading the way, particularly where energy is the primary economic driver. Nearly half of the markets in the top 54 are in the energy states of Texas, Louisiana, North Dakota, Wyoming and Montana.” “The fact that more than 125 markets on this month’s LMI are showing activity

levels of at least 90 percent of previous norms bodes well for a continuing housing recovery in 2014,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Co., which cosponsors the LMI report. Baton Rouge, La., tops the list of major metros on the LMI, with a score of 1.42 – or 42 percent better than its last normal market level. Other major metros at the top of the list include Honolulu, Oklahoma City, Austin and Houston, Texas, as well as Pittsburgh – all of whose LMI scores indicate that their market activity now exceeds previous norms. Looking at smaller metros, both Odessa and Midland, Texas, boast LMI scores of 2.0 or better, meaning that their markets are now at double their strength prior to the recession. Also at the top of the list of smaller metros are Casper, Wyo.; Bismarck, N.D.; and Grand Forks, N.D., respectively. The LMI shifts the focus from identifying markets that have recently begun to recover, which was the aim of a previous gauge known as the Improving

Markets Index, to identifying those areas that are now approaching and exceeding their previous normal levels of economic and housing activity. More than 350 metro areas are scored by taking their average permit, price and employment levels for the past 12 months and dividing each by their annual average over the last period of normal growth. For single-family permits and home prices, 2000-2003 is used as the last normal period, and for employment, 2007 is the base comparison. The three components are then averaged to provide an overall score for each market; a national score is calculated based on national measures of the three metrics. An index value above one indicates that a market has advanced beyond its previous normal level of economic activity.

Builder Confidence Rises Four Points in December Builder confidence in the market for newly built, single-family homes improved four points to a 58 reading on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for December, released today. This gain reflected improvement in all three index components – current sales conditions, sales expectations and traffic of prospective buyers. “This is definitely an encouraging sign as we move into 2014,” said National Association of Home Builders (NAHB) Chairman Rick Judson, a home builder from Charlotte, N.C. “The HMI is up 11 points since December of 2012 and has been above 50 for the past seven months. This indicates that an increasing number of builders have a positive view on where the industry is going.” “The recent spike in mortgage interest rates has not deterred consumers as rates are still near historically low levels,” said NAHB Chief Economist David Crowe. “Following a two-month pause in the index, this uptick is due in part to release of the pent-up demand caused by the uncertainty generated by the October government shutdown. We continue to look for a gradual improvement in the housing recovery in the year ahead.” Derived from a monthly survey that NAHB has been conducting for 25 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All three HMI components posted gains in December. The index gauging current sales conditions jumped six points to 64, while the index gauging expectations for future sales rose two points to 62. The index gauging traffic of prospective buyers gained three points to 44. Looking at the three-month moving averages for regional HMI scores, the South edged one point higher to 57 while the Northeast, Midwest and West each fell a single point to 38, 59 and 59, respectively.


Builders Outlook

2013 issue 12

2013 ISSUE 12


Builders Outlook

utlook on the scene |

EPAB Installation and awards Banquet Continued from Page 1


el paso development news CRRMA Readies for Opening of Toll Lanes

Drivers Can Use Border Highway Lanes in December After years of construction, El Paso drivers will get to choose whether or not to use “managed” toll lanes on the Cesar Chavez Border Highway in December when construction is expected to be complete. And now the Camino Real Regional Mobility Authority (CRRMA) is preparing to educate the public about how the toll program will work. The CRRMA board will review a presentation on the Cesar Chavez Managed Lanes Project at its meeting this week that will include details on the toll collection process and the marketing outreach that will roll out in the coming months. Drivers on the nine mile stretch of the Border Highway between US-54 and

the Zaragoza Port of Entry will still have two free lanes to use, while the additional toll lane will be the left-most lane in each direction. Pricing for use of the toll lanes will vary based on the time of day, starting at a base rate of $0.10 per mile. The minimum toll for any trip will be $0.40. Large trucks and trailers will be unable to use the toll lanes, while emergency and public transit vehicles will be exempt from tolls. There will be two tolling points in each direction, between Midway Drive and Yarbrough Drive, and between Yarbrough and Padres Drive. Entrance and exit points will favor drivers taking longer trips with only two exits from the toll lane for eastbound travelers, one before Yarbrough Drive and another before the Zaragoza Port of Entry. The Border Highway has been

widened to accommodate the new toll lanes. There is still a 10-foot inside-shoulder in each direction. The toll lanes will be separated from the free main lanes by a two foot buffer. Collection of tolls will be an electronic process with no actual payment infrastructure on the highway. Sensors will scan vehicles for a toll tag for those that are registered with a toll service and bill the driver accordingly. Cameras will be used to capture license plate information for non-registered drivers who decide to use the toll lanes. A bill will be sent to the address of the vehicle’s registered owner. The CRRMA expects to spread the news about the new toll lanes via stories on various news stations, broadcast advertising on television, radio, and billboards, and through “grass roots efforts” involving elected officials and community

meetings. At least two other managed lane projects are in the works. The Americas Managed Lanes Project will continue the Cesar Chavez toll lanes at the eastern terminus from the Zaragoza Port of Entry north to Bob Hope Drive on El Paso’s East Side. And the massive Border Highway West project will create a brand new tolled expressway from Downtown El Paso to the city’s West Side. The CRRMA will discuss the presentation at its October 9, 2013 meeting. More information can be found at Above: The “managed” toll lane will be the innermost lane in each direction. Rates per mile will vary based on congestion and the time of day. (CRRMA)

The Latest Trends In Kitchen Remodeling By Alden Smith Home Repair & Personal Finance

The kitchen is no longer a gathering place like it was in the 50's and 60's, when large country kitchens were the focal point of the family. Now they are designed to be efficient and time saving. Very few families eat in the kitchen any longer. Those that do will wisely chose the proper remodeling scheme when they redo the kitchen. Often, people do not think of future home owners when designing their kitchen, but instead design to meet their own preferences. That is okay, as long as the owners plan on staying in their home forever. If, however, you wish to plan ahead for a future home sale, then you need to take a few things into consideration when redesigning your kitchen. Here, we will discuss current trends and what to look for in a new kitchen design. What Leads In Trends? If you want to know what leads the market in remodeling, look no further than current high end homes. These expensive homes pave the way in trends, and paying attention to what is being done is critical if planning to sell at a later date. According to a Harvard University study, about 90% of the remodeling ideas are driven by homes that cost in the neighborhood of $400,000.00. These ideas trickle down to the middle market, and are then incorporated by many home builders. Who Is Buying? Baby Boomers are growing older, with the first retiring in 2007. They are generally set in their homes or plan for a retirement setting. Now, Gen X'ers are coming up and look at things more differently than Boomers. The Boomers are looking to downsize, and Gen

X'ers are fast coming into the age where their families are growing, they are more affluent, and wish more space. When remodeling, keep this generation in mind. What's Hot, What's Not What works yesterday will not work today. A kitchen is dated the minute construction is finished. Building a classic and efficient kitchen takes a lot of homework. Let's look at some of the hottest trends in kitchen rebuilds: • Be sure to match your décor. Nothing sticks out more than an ultra modern kitchen in a shabby chic setting.Plan the kitchen around the theme of your home. • Countertops are the most regarded item in a kitchen.Gone are the days when Formica would do. Upscale homes generally have granite or marble counter tops. They are beautiful and long lasting, but a word of caution is in order - they have a tendency to absorb oils and stains. Although they can be cleaned, this is the downside of these materials. You may wish to opt for the new composite countertops that are stain resistant, yet simulate the more expensive (and heavier) marble or granite countertop. Corian by Dupont is becoming more fashionable these days. • Let lighting be the focus of your kitchen. In a lot of kitchens, a single overhead light serves purpose. This is not only frustrating for the chef but makes cooking a much less enjoyable experience. A kitchen needs to be well lit, yet have a homey atmosphere. A smaller kitchen can benefit from correct overhead lighting and task specific lighting such as under cabinets, lighting the prep area. In larger kitchens lighting needs to be

more functional, with areas such as cupboards and drawers well lit. The trend for fluorescents is past, and now we see recessed lighting installed over stoves, sinks, and prep areas. Keep in mind that it must not only be functional, but add to the ascetic appeal of the kitchen. According to research done for this article, pewter lighting fixtures are the current hot trend. • Flooring in the kitchen is essential for a well designed room. Try to apply flooring that contrasts with the appliances and setting instead of matching it. Current trends are towards long plank flooring and the more exotic darker hardwoods such as mahogany and cherry. Trending is terracotta, porcelain and even Spanish roofing tiles. The color goes deep in these materials and gives any kitchen a well designed look.

Keeping up with the latest trends in kitchens can be a time consuming and expensive job. Some people may feel that making expensive upgrades to kitchens increases the resale value.   Although this can be true, there is a point where spending money on remodeling is not to your advantage.   Remodeling Magazine's annual Cost vs. Value survey points out that upgrading a kitchen can increase the value.   Other sources say that doing such things as resurfacing kitchen cabinets, replacing countertops and replacing outdated appliances puts you in a position to do better on resale than a full modern upgrade.   Whatever your choice, read up on kitchens and remodeling, and make your kitchen the focal point of your home.

Builders Outlook Issue 12.2013

Content provided by El Paso Development News visit:

Medical Center of the Americas Growth Foundation Presents First Annual Impact Fund Report The City of El Paso received the first annual report from the Medical Center of the Americas (MCA) Foundation in October on various ongoing efforts bolstered by the City’s investment last year. A Chapter 380 Economic Development Program Grant Agreement was established on February 7, 2012 between the City and the MCA Foundation. Representatives of the MCA will update City officials on various endeavors including funding resources, staffing efforts, and planning and design details for a biomedical institute and the tech park. The Foundation is also working continuously to acquire properties in the vicinity of the MCA campus. The Biomedical Institute of the Americas (BMIA) was formed last year with help of City grant funding to encourage biomedical research and innovation in the El Paso region. To date, the BMIA has “triaged” biomed companies on a local and national level, according to the report, and hopes to become a “robust innovation pipeline” within five years. Another venture the MCA Foundation has undertaken is the Clinical Research Organization (CRO), an effort to launch a local clinical trials network. The Foundation will align itself with one or more CROs, identify products needing clinical trials, and integrate them into the local provider network. The CRO launched in 2012. Representatives will also update Council members on one current and one near-future construction project underway at the MCA campus. The $37.9 million Cardwell Collaborate building will be the first for

leasable space. The project’s architect is the Philo Wilke Partnership firm of Houston ( The firm opened an El Paso office in 2010. To the south and closer to the MCA Campus core, the new building for the Gayle Greve Hunt School of Nursing is now under construction. The $14 million project will move the school from its temporary location near Downtown El Paso to the new 33,000 square foot facility in spring of 2015. Recently updated renderings of the planned structure show a three level building that will be located across the street from the Paul L. Foster School of Medicine’s Medical Education Building. The Page Southerland Page firm ( is the architect on the project with offices in Austin. The contractor is Vaughn Construction based in Houston (, with an office in El Paso. The report was presented to City Council at its October 15, 2013 meeting. More information on the MCA Foundation can be found at Top Image: This rendering shows what the entrance to the Cardwell Collaborative Building may look like when it opens in August 2015. (MCA Foundation) the 13-acre MCA Tech Park off of Gateway Boulevard East. Design of the building is expected to be complete by October 17, 2013, with demolition and site preparation beginning in January of next year. Officials hope to have it open by August 2015. The 83.000 square foot, multi-

Rio Valley to Use Drainage Area as Skate Park

story building will be highly visible from Interstate 10 just east of the Spaghetti Bowl. According to floor plan schematics in the report, the first level will have conference rooms, administrative offices, and a café. The upper levels will have rooms for laboratories and research equipment, as well as some

Construction has been ongoing at the future site of the Rio Valley community in El Paso’s Upper Valley, and crews this week are working on a concrete drainage area that will serve double duty. The approximately 80 by 35 foot area will also be used as a skate-park and has been designed with these dual uses in mind. “The philosophy behind our inclusion of this improvement in our park is that we wanted a park that parents would see as attractive with facilities that could help keep kids entertained,” states Scott Winton of Winton Associates, the developer of the 62-acre Rio Valley neighborhood. “Since the park area also serves as a drainage facility and since we were going to be pouring concrete, it made sense to make it multi-purpose.” The skatepark was designed by longtime skating advocate Paul Zimmerman, one of the founding board members of the El Paso Skatepark Association (, a local nonprofit

Bottom Image: Tables and benches make up a seating area in front of the Gayle Greve Hunt School of Nursing building in this concept image. (MCA Foundation)

organization. The association advocates for high-quality designed skateparks, citing studies showing one in seven children and teenagers rides a skateboard. The Rio Valley development is located at the northwest corner of Borderland Road and Westside Road, west of Doniphan. It is billed as a “small village” that will make multiple housing types available and which will also have a “Main Street” with different retail, restaurant, and office uses. The development should be ready for home construction by January 2014. The new drainage/skatepark area is being built by Bain Construction. Image Caption: Design of the combination drainage area/skatepark at Rio Valley in the Upper Valley.


Builders Outlook

2013 issue 12

The Economy

Rising mortgage rates dissuade new home buyers Diana Olick A sharp rise in mortgage rates over the last few weeks means it may be too late for some homeowners to benefit from a refinance. This just as thousands were gaining equity in their homes and finally becoming eligible.AQt the same time, the still-low rates are encouraging some renters to buy out of fear that they too will miss the boat on the best conditions for buying a home. Refinances dropped 12 percent last week, while mortgage applications to purchase a home rose 3 percent and are now up 14 percent from a year ago, according to the Mortgage Bankers Association. "Rates rose in response to stronger economic data and an increasing chance that the Fed may soon begin to taper their asset purchases," said Mike Fratantoni of MBA in a statement.The Federal Reserve has poured billions of dollars into the mortgage market since the housing crash began, pushing mortgage rates to record lows. But recent remarks by Fed Chairman Ben Bernanke suggest the monthly mortgage market infusions may end soon. That has pushed the rate on the 30-year fixed conventional mortgage to 3.90 percent, the highest level in a year, dangerously close to the emotional 4 percent barrier. This as home prices are jumping higher and faster than expected. It's amazing to see the frenzied pick-up in home buying, as renters get nervous that both home prices and rates will rise quickly," said Craig Strent, CEO of Maryland-based Apex Home Loans. "They are trying to catch the beginning of the curve here." In Cincinnati, however, Dan Green, a loan officer with Waterstone Mortgage, said his refinance clients are being hit the hardest, especially those who need lower-cost FHA loans. His home-buying clients seem more indifferent to the situation. "Among the Main Street set, there is little awareness of this month's change in mortgage rates, let alone the changes of this week," added Green. "There's been very little panic among rate-shopping households. There's an acceptance, almost, a 'low rates couldn't last forever'-like attitude." Rising rates could not come at a worse time for the housing recovery. Home prices rose over 10 percent in March, according to the latest surveys from S&P/Case-Shiller. Every 1 percentage point rise in mortgage rates reduces the average home buyer's maximum purchase price by 11 percent, figures Green. First-time home buyers will be hit hardest by rising rates, just as they were beginning to trickle back into the market. They made up just 29 percent of buyers in April, according to the National Association of Realtors, the lowest level in two years. Historically, they usually account for about 40 percent of the market. The 30-year fixed mortgage hit a record low rate of 3.47 percent in December of last year. Even though it is still well below historical norms, this small rise is already taking its toll. "In my world it's clearly slowing the market and pricing. Right now I have properties that are well-priced yet sitting on the market unsold," said David Fogg, a real estate agent in Burbank, Calif. "Should rates continue to rise, values will likely soften."

Housing Affordability Continues to Slide in Third Quarter Strengthening house prices and increased interest rates in metros across the country contributed to lower housing affordability in the third quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), released today. In all, 64.5 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $64,400. This is down from the 69.3 percent of homes sold that were affordable to median-income earners in the second quarter, and the biggest HOI decline since the second quarter of 2004. “Housing affordability is being negatively affected by a ‘perfect storm’ scenario,” observed NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “With markets across the country recovering, home values are strengthening at the same time that the cost of building homes is rising due to tightened supplies of building materials, developable lots and labor.” “The decline in affordability is the result of

higher mortgage rates and the more than year-long steady increase in home prices,” observed NAHB Chief Economist David Crowe. “While affordability has come down from the peak in early 2012, the index still means a family earning a median income can afford 65 percent of homes recently sold. Some of the decline in the affordability index could be the result of a loss in some more modest priced home sales as tight underwriting standards have limited the purchases by moderate income families.” Indianapolis-Carmel, Ind., and Syracuse, N.Y. were tied as the nation’s most affordable major housing markets as 93.3 percent of all new and existing homes sold in this year’s third quarter were affordable to families earning the areas’ median incomes of $65,100 and $65,800, respectively. Meanwhile, Kokomo, Ind., claimed the title of most affordable smaller market, with 96.9 percent of homes sold in the third quarter being affordable to those earning the median income of $60,100. Other major U.S. housing markets at the top of the affordability chart in the third quarter included Youngstown-WarrenBoardman, Ohio-Pa.; Harrisburg-Carlisle, Pa.; and Buffalo-Niagara Falls, N.Y.; in descending order. Smaller markets joining Kokomo at the top

of the affordability chart included VinelandMillville-Bridgeton, N.J.; Davenport-MolineRock Island, Iowa-Ill.; Bay City, Mich.; and Springfield, Ohio. For a fourth consecutive quarter, San Francisco-San Mateo-Redwood City, Calif. held the lowest spot among major markets on the affordability chart. There, just 16 percent of homes sold in the third quarter were affordable to families earning the area’s median income of $101,200. Other major metros at the bottom of the affordability chart included Los Angeles-Long Beach-Glendale, Calif.; Santa Ana-AnaheimIrvine, Calif.; New York-White Plains-Wayne, N.Y.-N.J.; and San Jose-Sunnyvale-Santa Clara, Calif.; in descending order. All of the five least affordable small housing markets were in California in the latest quarter. At the very bottom of the affordability chart was Santa CruzWatsonville, where 20.3 percent of all new and existing homes sold were affordable to families earning the area’s median income of $73,800. Other small markets at the lowest end of the affordability scale included San Luis Obispo-Paso Robles, Santa RosaPetaluma, Napa and Salinas, respectively -NAHB.

2013 issue 12


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Builders Outlook

2013 issue 12

Ho, Ho, Ho: Toys bring joy to kids and givers alike The El Paso Association of Builders installation dinner was overwhelmed by generous party goers who brought gifts for boys and girls ages 0-13. The annual installation banquet has requested guests to bring unwrapped toys to the event over the years. The response this year allowed the EPAB to provide two area nonprofits with gifts for their charity. Bags of toys were gathered at the Marriott Hotel ballroom lobby and spent the night with Executive Officer Ray Adauto. “I must admit that some of these trucks and remote control cars, the games and puzzles all looked like fun to play with,” he said. “It’s pretty cool to play Santa for the Association, and all I can say is thank you to all who brought something with them,” he continued. Frank and Isela Torres loaned their SUV for the transport to the association office. Once there Santa Ray and his elf Margaret separated them into boys, girls, older and younger and laid them out for the two groups to pick up. First was the Junior Women’s Club of El Paso founded in 1934 is comprised of about 30 ladies from the El Paso area who in private life are police officers, business owners, teachers, doctors, businesswomen and in other professions. They come together to provide resources for some community services and providers like Ronald McDonald House, Children’s Crisis Center, McGruff the crime fighting dog, the Reynolds Home, Anthony Fire Department community effort, Special Olympics, City County Nutrition, Reach

for a Star Foundation, La Posada Home, Warrior Transition Battalion, and others. These women hold a couple of fund raisers to make the money to give out including the yearly Spooktacular at the county Coliseum, and a spring golf tournament. Pema Garcia, president of the JWC gathered toys for 24 families of one of the poorest schools in El Paso, Hart Elementary. “We can’t begin to give you enough thanks for all the toys,” Ms. Garcia said. “We go out and buy as much as we can with what we have collected from our events and we work to have enough,” she said. “This contribution will go a long way to give a special something to the neediest right here in our city,” Garcia told us. The distribution was held on Wednesday, December 18, 2013. The second group to get toys was Ciudad Nueva, a community outreach program located in central El Paso at 840 Yandell. Their motto is “advancing the renewal & development of inner city El Paso... by loving God and loving our neighbors. Begun through the efforts of St. Clements Church the outreach program is designed to help the immediate neighborhood around the center, deep in the heart of El Paso and just north of downtown. This 501 c 3 nonprofit developed a program, Launch Pad, to mentor youth in elementary, middle and high school. Launch Pad has received consistent positive reviews from students, parents, teachers and school counselors. Consequently, the center receives frequent requests for students to be admitted into the Launch

Pad Program. Launch Pad has received awards for the last four years from the El Paso Independent School District for its “outstanding support” of elementary school students. Presently, over 35 volunteers help mentor, tutor, lead lessons, prepare snacks, drive vans, paint murals, decorate the center, and assist in a variety of other capacities with the Launch Pad program. Sami DiPascuale, executive director at the program, came to the EPAB office to pick up the toys for the kids. “It was truly a surprise and blessing, all wrapped up in one,” he told the Outlook. “When Ray called me I missed the call because we were in a meeting trying to figure out where we could get some more toys. The giving has been good but we actually were short and wondering how

we could secure some,” he continued. “Just then I looked at my phone and there was a message from Ray who told me to call him about a gift. I did and he said, Sami I need for you to come by and see what we have for the kids,” he said. When he arrived at the office DiPascuale couldn’t believe the generosity of the association. “Oh my, which ones can we have?” he asked. Ray told him that what he was looking at was for them. “My heart was pounding, thinking “thank you Lord, thank you,” Sami said. “Thank you to all the folks who made this possible.” Our sincere thanks to everyone who came to the dinner with a toy. Next year we plan to do the same request so start looking for toys. As you can see from this story the need is great.

2013 Issue 12


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Builders Outlook

2013 issue 12

Associates Council

Sam Shallenberger Western Wholesale Supply Happy holidays to everyone. The associate’s council had one of its best years as well as the association did. I want to thank all of you that helped us with the golf tournaments, and bowling outings, Parade and all our other events. The spring Pachanga during a tornado

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was my favorite of all time. Ascarate Park is not the best place to be in 60 mph wind but neither is El Paso in general. The thing that got me the most was that everyone showed up, no one left and the harder the wind blew the more fun everyone had. I think the (tinas) tubs on every other hole had a lot to do with that not to mention our friend with the wind medication riding around and nursing the poor golfers. Yes we know who they are. Let us not forget the title company that provided Mundo, Gaby and I a place to hang our hat and forget the wind. It would be nice not to have the wind next year but rest assured that we will have another pachanga. The bowling outings were a blast. Where can you go and spend $100.00 get lunch and bowl for four people. The Pro Am was a huge success as we were sold out two

weeks after we announced it. This was a great tournament as there was no cheating since the pro’s kept score. The prizes were gift certificates to The Painted Dunes Pro Shop. By the way we each got a $50.00 certificate just for playing. What a deal! I want to thank my very close friend (especially when I need a loan) the President and CEO of WestStar Bank Larry Patton for being our title sponsor for both golf tournaments. The guys at WestStar Bank do a great job for the association. They were deserving of the Associate of The Year award given at the installation. Congratulations to WestStar Bank and all the employees who help us every year. I also want to thank everyone who participated and sponsored for the association. Without the participation from all the sponsors it would be difficult, no it

would be impossible to make these events happen. I wish I could list everyone that sponsored this year but the page is not big enough. On a personal note I am humbled to have received the Pat Cox Lifetime Award. I can’t begin to tell you how surprised and proud I am at having been selected for this. Probably has to be one of my life highlights and something I can take off my bucket list. When Mike Santamaria started talking about me I thought he was going to say something about the associate’s council. You can’t imagine how honored I am. Thank you to our Executive Board and to Ray and Margaret. I hope to represent this honor well.

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utlook 6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038 ■ execuTive oFFicerS edmundo Dena – President Accent Homes Frank Torres – vice President GMF Custom Homes edgar montiel – Secretary/Treasurer Palo Verde Homes Sam Shallenberger – Associates chair Western Wholesale Frank Arroyos- immediate Past President Cisco Homes ray Adauto – executive vice President El Paso Association of Builders

■ TAB STATe DirecTorS Doug Borrett, Karam Co., Life Director Randy Bowling, Tropicana Homes ■ NATioNAL DirecTorS Bobby Bowling IV. Demetrio Jimenez NATioNAL ASSociATioN oF Home BuiLDerS (800) 368-5242

TexAS ASSociATioN oF ■ couNciL/commiTTee cHAirS Associates council Sam Shallenberger Build PAc Randy Bowling Desert Green Building council Javier Ruiz Land use council Sal Masoud Young Designer Award John Chaney remodelers council Rudy Guel membership retention Mike Santamaria, Greg Bowling Finance committee Edgar Montiel Women’s council Lorraine Huit ■ ADviSorY To THe BoArD J. Crawford Kerr, Attorney, Firth, Johnston & Martinez ■ BoArD oF DirecTorS Juanita Garcia, Icon Custom Builders Samira Gonzalez, Edwards Homes Walter Lujan, Dawco Construction Carlos Villalobos, Pointe Homes Don Rassette, Rassette Homes Beverly Clevenger, Automated Division 6 Builders Frank Spencer, Aztec Contractors Kathy Parry, Hunt Communities Sal Masoud, Del Rio Engineering Robert L. Foster, Southwest Land Development Services Leti Navarette, Custom Dream Homes Linda Troncoso, TR-Engineering Lance VanDeman, Hub International John Chaney, Passage Supply Joe Bernal, El Paso Employee Benefits Ken Wade, El Paso Building Materials Ruben Orquiz, MTI Ready Mix Kathy Carrillo, Pioneer Bank Henry Tinajero, West Star Bank Paul Zacour, Zacour & Associates Chuck Gabriel, Carpets West Ted Escobedo, Snappy Publishing Lorraine Huit, Cardel Design Javier Ruiz, Border Solar & Senercon

BuiLDerS (800)252-3625

2012 Builder member of The Year Frank Arroyos Cisco Homes 2012 Pat cox Award Mike Santamaria Mountain Vista Homes 2012 Associate of The Year Sam Shallenberger Western Wholesale Supply John Schatzman Award Hunt Companies

Honorary Life members Rudy Guel Brad Roe Cliff Anthes Wayne Grinnell Chester Lovelady Don Henderson Anna Gil

Past Presidents committed to Serve Greg Bowling Kelly Sorenson Mark Dyer Mike Santamaria John Cullers Randy Bowling Doug Schwartz Robert Baeza

Bobby Bowling, IV Rudy Guel Anna Gil Bradley Roe Bob Bowling, III E. H. Baeza Hershel Stringfield

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. © 2013 Builder’s Outlook is published and distributed for the El Paso Association of Builders by Snappy Publishing 240 Thunderbird • Suite C El Paso • Texas • 79912 915-820-2800

Buldersoutlookissue12 2013  
Buldersoutlookissue12 2013  

The official publication of the El Paso Association of Builders