builders outlook 2013 issue one

7/30/2019 Builders Outlook 2013 Issue One

1/16

Builders utlook

www.elpasobuilders.com www.epbuilders.org

2013

issue 1

2013:

U pward trends in recentmonths among a number ofhousing indicators point to aslow and steady growth in thenations housing market in 2013, butseveral challenges remain,according to the latest economic andhousing forecast by David Crowe,chief economist for the NationalAssociation of Home Builders(NAHB).

Consistent, positive reports onhousing starts, permits, prices, new-home sales and builder confidencein recent months provide further

confirmation that a gradual butsteady housing recovery is underwayacross much of the nation, saidCrowe. However, stubbornly tightlending standards for home buyers

and builders, inaccurate appraisalsand proposals by policymakers totamper with the mortgage interestdeduction could dampen futurehousing demand.

Stating there is no consistentnational trend, Crowe noted thehousing recovery is local butspreading.

We are transitioning from a verylow demand level, where mostpeople hold themselves out of themarketplace, to a case where supplywill start being the problem, he said.As we begin to build more homes to

address that supply, the new homestock will be a much more importantelement of the recovery.

Setting the 2000-2002 period as abaseline benchmark for normal

housing activity, Crowe said thatowner-occupied remodeling hasreturned to previously normal levels.

Multifamily production is also wellon its way, back to 69 percent of

normal, he said. Its the single-family market that has the farthest togo, standing at only 40 percent ofwhat is considered a typical market.

Meanwhile, the number ofimproving housing markets acrossthe nation continues to showconsiderable advancement. Whenthe

NAHB/First American ImprovingMarkets Index (IMI) was launched inSeptember of 2011, only 12metropolitan areas out of 360 wereon the list. As of December 2012, thelist stands at more than 200 metroareas. The index is based on a six-month upswing in housing permits,employment and house prices.

One reason we have seen such asignificant jump in the IMI is becausehouse prices are beginning torecover, said Crowe. House pricesbottomed out early in 2011 and sinceearly 2012 weve seen a 6 percentincrease on a national basis.

Another factor spurring therecovery is that householdformations are on the rise. In theearly part of the decade, the nationwas generating 1.4 million newhouseholds each year. Thiscollapsed to 500,000 annually duringthe housing downturn and currentlynew households are being formed atclose to a 900,000 clip per annum.

Were not up to normal, but this is

adding to demand for housing,Crowe said.

As new households form at agrowing rate, so too does builderconfidence. The NAHB/Wells Fargo

Housing Market Index, whichmeasures builder confidence in thesingle-family housing market, hasposted gains for eight consecutivemonths and now stands at a level of47. This is very close to the criticalmidpoint of 50, where equal numbersof builders view the market as goodor bad. The HMI has not been above50 since April of 2006.

Single-family home starts areprojected to climb to 534,000 unitsthis year, up 23 percent from 2011.NAHB is forecasting that single-family new-home production will posta healthy 21 percent gain in 2013 to647,000 units. Starts will continuetheir upward climb in 2014, posting afurther 29 percent rise to 837,000units.

Multifamily production is expectedto rise 31 percent in 2012, reachingthe 233,000 level, and posting asolid 16 percent gain in 2013 to270,000 units. Multifamily starts areanticipated to rise an additional 9percent in 2014 to 294,000 units.

Meanwhile, new single-familyhome sales are expected to rise from307,000 last year to 367,000 thisyear, a 20 percent rise. Sales areanticipated to climb to 447,000 nextyear, up 22 percent from 2012 and

jump to 607,000 in 2014, a 36percent increase over 2013 levels.

Housing remains on growth track, challenges still loom above

Rally Day is thebest way formembers tofamiliarizethemselves withthe issues that facethe residentialconstructionindustry and, moreimportantly, deliverour legislativeagenda straight to

the doorstep of our legislators. This isalso a great way to build relationshipswith legislators and network with othermembers within the association. RallyDay is the perfect event for newmembers to attend and see firsthandwhat TAB does for them and theirbusinesses as well as how yourgovernment relations team advocates onbehalf of the home building industry atthe Capitol.

As in years past, we will have anaddress from an elected official and alegislative update on the South Steps ofthe Capitol. This year, lunch will be onyour own in between your Capitol visits.We will wrap up the days festivities and

join us for a legislative reception at thehistoric Driskill Hotel.

Your support is needed to protect ourentire industry, and TAB asks that youand your local association make thecommitment to travel to Austin onWednesday, February 20 for Rally Day2013. We look forward to you being apart of this specialand effectivelegislative event.

If you have any questions about RallyDay 2013, please feel free to contact theoffice at (915) 778-5387

Buildershead for

Austin


2/16

2 Builders Outlook 2013/1


3/16

Since this is my first official article as president I want to let you know howmuch I appreciate your support and would like to thank all of those whoattended the installation. It was a really nice event that had a lot class andsome genuine good times. I especially want to thank our sponsors once againas without them the association couldnt put an event like this on. Theinstallation committee did a great job as well so my hats off to Lorraine Huitand her fine group of ladies: Kathy Carrillo, Kathy Rose, Margaret Adauto,Kathy Parry and my wife Claudia. Thanks for welcoming us like you did.

The business at hand starts this month with our Spring Home Show. Mythanks to those of you who are displaying your products and services at thisshow. It looks to be another success from the numbers and of course thepublic loves this event. I will be leading our delegation to Las Vegas for theInternational Builders Show later this month and I am aware that several of youwill also be attending. Its good to have it close by and in such a fun city.

Now, lets get to why Im writing this article. I want to remind you of that greatUS Army ad where they challenge you to be ALL you Can be! I want to dothe same with you, and remind you that your membership needs to be a fullvalue membership. What I mean is that if you are a member in name only thenyou are missing 99% of what your membership can and should be. Why wouldanyone look at this opportunity and not take advantage of what it offers?Simply put its up to you. We have a lot of opportunities for you to takeadvantage of; sometimes its simple like coming to meetings. Other times ittakes a little effort, especially when we ask you to invest your business in ourassociation. This year my challenge to you is to do exactly that, Be All You CanBe. You will find it rewarding and you will benefit beyond your expectations. Itmight be your way to make new contacts, build your business or find a betterway to do business. You will find out ONLY if you accept the challenge. Youbenefit and our association benefits. Thats a beautiful combination and one

that we all know is what you want. And its one we need in order to succeed.See you soon. Happy New Year.

Presidents Message |

El Paso Disposal

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32013/1 Builders Outlook

Edmundo

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Thomas R. Brown, Owner


4/16

An organization like ours is simply herebecause we have members andsupporters that pay for us. Without ourmembers and support groups we wouldntexist. Like any volunteer organizationgetting through the last months of acalendar year are often the most difficultin terms of income yet nothing changeswhen it comes to having to pay to stayopen. Like so many small businesses itsa struggle that no one in managementlooks forward to or is fully prepared for.

In retail you hear about black Friday, yetfew understand the real meaning of thatterm. To most its the day that sales forstuff start and its when you go out andfind that super-duper deal on electronics,clothing, or just about anything else youcan buy. Yet to the retailer all the wayback to the manufacturer black Friday isthe day that signifies finally earningincome, that is, your business is in theblack. So here you have two of retailsstrangest events happening depending onwhat side of the counter you lie in. Buyinga bargain or staying in business alldressed up in some dance of death, aspiral that can spin you to bankruptcy nomatter where you stand. For associationslike ours we have a regular black Fridayevery week when we try to figure outexactly how much we money we have tooperate with and how much we need topay out. I can tell you that regardless ofhow much planning you do something is

bound to mess with the plan. ExecutiveOfficers across the land recognize thisand like all adrenaline junkies I supposewe look for the thrill of getting through thecycle. Most survive but others may not beas fortunate. Our economy still has somebig obstacles to overcome and it will beinteresting to see what the new Congresswill do to help. We just dont need them tohurt us anymore.

As I opened the doors on January 2, Iasked myself what it would take to ensurewe are here next January. It isntsomething I do alone as I have anexcellent executive committee that helpsplan and then implement the plan. But ittakes more than just the six of us to bringthe plan to reality and it starts with you asa member or supporter. First andforemost we ask that you keep yourmembership and that you view it as animportant part of your business plan.Secondly we ask that you make plans toadvertise or sponsor in an event orpublication. Third is that you do businesswith a member so that together we cansee a prosperous 2013. Perhaps if weuse discretion as to where and with whomwe spend our money it could go better forall of us.

The fact is that during these last fewyears we cut back on many itemsincluding personnel. Sometimes thosecuts have been too close to the bone andlack of staff creates its own problems.

Doing more with less has taken its toll. Iam guilty of that and understand the needto adjust in order to try a financialcomeback. In the next few months Iexpect that you will see a new face or twocoming to visit you representing us. Webegan that transformation late last yearwhen we brought in a third party salesteam to sell our ads in the memberdirectory. We will continue thatpartnership and look for moreopportunities this year. If you have ideasfor us please bring them forward. I needto hear them and try to figure a way to putthem to use.

We are looking at an ambitious eventschedule and it starts with the SpringHome Show this January 18-20 at theWilliams Convention Center downtown.This event brings out people from the areato visit with and buy services and product.Why wouldnt you want to be there, right?Our next event will be a spring tour ofhomes, followed by our first golf outingand then more events to enhance bothyour experience and our bottom line.

So hello 2013. Lets all find a way tomake this year as prosperous as we can.Afterall its about the ability to open thatdoor again in 2014.

Perspective |

Ray Adauto,ExecutiveVice PresidentEPAB


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6/16


The nation's home builders continue to feelmuch better about their industry, but thedramatic gains seen through the summer andfall appear to be moderating.

An industry index measuring home buildersentiment in the single-family market rose twopoints in December, while November's five-point monthly gain was revised lower by one

point.The National Association of Home

Builder's/Wells Fargo Housing Market Indexnow stands at 47; 50 is the line betweenpositive and negative sentiment. The indexstood at 21 in December of 2011.

"Builders across the country are reportingsome of the best sales conditions they've seenin more than five years, with more seriousbuyers coming forward and a shrinkingnumber of vacant and foreclosed propertieson the market," observed NAHB ChairmanBarry Rutenberg in Tuesday's release."However, one thing that is still holding backpotential home sales is the difficulty that manyfamilies are encountering in getting qualifiedfor a mortgage due to today's overly stringent

lending standards."Of the index's three components, currentsales rose two points to 51, pushing intopositive territory for the first time since thehousing crash. Sales expectations over thenext six months, while remaining in thepositive, dropped one point, and buyer trafficrose one point but is still far from positiveterritory at 36.

Regionally, home builder sentiment saw itsbiggest jump in the Northeast, up 12 pointsmonth-to-month. Sentiment rose two points inthe Midwest, but fell two points in the Southand three points in the West. Only in theMidwest are the home builders in solid positiveterritory.

"We believe that a properly balancedagreement will breed confidence in thepolitical system and the U.S. economy, willenable the housing market to continue itsrecovery, and, in turn, will promote broadereconomic growth"

Letter to Obama and Boehner Signed by 18CEOs

December's gains in sentiment are not asdramatic as the jump in November, as somebuilders are likely concerned about thepossibility of going over the so-called "fiscalcliff." Some builders have already reportedlaying off workers and delaying projects,concerned that much-needed capital forconstruction will dry up if a deal cannot bereached by the end of the year.

Last week the CEO's of 18 home buildingcompanies, who collectively build 30 percentof the nation's new homes, sent a letter toPresident Barack Obama and House SpeakerJohn Boehner urging them to avoid the fiscalcliff, even if it means raising taxes on thebuilders:

"We support a comprehensive agreement in

Washington to avoid the fiscal cliff thatincludes revenue increases (including tax rateadjustments) together with meaningfulentitlement reforms. We believe that aproperly balanced agreement will breedconfidence in the political system and the U.S.economy, will enable the housing market tocontinue its recovery, and, in turn, will promotebroader economic growth."

The letter was signed by the CEOs ofpublicly traded builders including BeazerHomes, Hovananian Enterprises, KBHome,Lennar, MDC, and Meritage.

By CNBC's Diana Olick

Builders business on the rebound

The Economy

Builders & Buyers Bypass Budget Bullet

Editors note: Wed like to welcome Economist Elliot Eisenberg as a regular contributor to the Builders Outlook.His wealth of experience on housing has been the model for HBAs across the country over the past decade. Now in private practice Dr. Eisenberg will bring his talent every month as a special contributor to the Outlook.

The mortgage interestdeduction (MID) cost the USTreasury $88.8 billion in2011, making it the secondlargest tax break forindividuals. That is preciselywhy the Congress has itssights set on it. However,there is much debate abouthow to reduce its costs to theTreasury and by how much.

No matter what happens, reducing the MIDwill lower some house prices. That being said,how the Congress reduces the MID willdetermine how much how many houses losevalue. And since so many of us own a home,

sell homes or build homes, the MID will not besingled out for special treatment. Rather, theCongress will cap or phase out the value of alldeductions, and in that way avoid favoring onededuction over another.

While there are several possibleapproaches, based on White House andSenate details of their last-minute deal to avertthe fiscal cliff, the most likely one phases outitemized deductions for households withincomes over $300,000. While at first blushthis may appear to be quite damaging, I thinkhomeowners, realtors, builders, and the entirehousing industry have all dodged a bullet andshould sleep well for quite a while, or at leastuntil the Congress reopens debate on the taxcode sometime in the future.

Phasing out Schedule A deductions forcouples with incomes over $300,000 limits theimpact to buyers of only the most expensivehouses. For example, with a 10% down-payment on a $1,500,000 house, mortgage

interest would be $54,000/year, property taxeswould average $16,500, and insurance wouldbe about $8,000, totaling $78,500 in annualhousing-related expenses. To finance thatmortgage, the $78,500 should ideally not bemore than 30% of gross income, which meansqualifying requires having an annual income ofroughly $260,000; comfortably below theincome level at which deductions start phasingout.

That being said, how much will a housevalued at $2,000,000 decline? By very little!In theory it will fall by the one-time lump-sumamount necessary to compensate buyers forthe new income taxes they will pay due to theirbeing at or above the phaseout threshold.With interest rates currently at 4%, this means,and trust me on this, every $1,000 in addedincome taxes reduces the house price by($1,000/4% or) $25,000. However, in reality,these impacts will be dramatically mitigated bytax avoidance strategies available to the very

wealthy including systematically larger down-payments, cash purchases, corporatepurchases and so on.

In short, few homeowners will be impactedby the new tax treatment of deductionsincluding the MID. For households withincomes below $300,000, there are noimpacts stemming from this change and forthose with higher incomes, the impacts willlargely be mitigated by tax avoidancebehavior. At worst, only homes worth wellover a million dollars will be adverselyaffected.

With huge deficits as far as the eye can see,the tax treatment of deductions is sure tocontinue to change and evolve. Enjoy thedebate, but be aware that next time you maybe on the menu.Elliot Eisenberg, Ph.D. is President of GraphsandLaughs,LLC and can be reached at [email protected] daily 70 word economics and policy blog can be seen at www.econ70.com.

Elliot Eisenberg


7/16

Home Builders,Utilities HailReconsideration ofEPA StormwaterDischarge Rule

In a victory for the environment,affordable housing and the nationsenergy infrastructure, the NationalAssociation of Home Builders

(NAHB), Utility Water Act Group(UWAG) and Wisconsin BuildersAssociation have settled alongstanding lawsuit against theEnvironmental Protection Agencyafter the agency agreed to withdrawthe numeric limit it developed tocontrol stormwater runoff fromconstruction sites and to pursueadditional improvements to the 2009rule.

The lawsuit had noted that theEPAs numeric limit would have coststakeholders up to $10 billion a yearin attempts to comply and thatcoming up with a number that wouldwork across all geographic areas andsoil types would not be possible.

NAHB and UWAG have beenclosely involved in EPAs efforts todevelop appropriate controls forconstruction and developmentindustry stormwater discharge formore than 15 years. For UWAG, the

focus has been on the particularimpacts of EPAs rule on linear gasand electric utility projects, such asthe construction of new transmissionand distribution lines. For the homebuilders, the focus has been on the

challenge associated with meeting anumeric limit across all constructionsites.

NAHB supports responsibledevelopment and the goals of theClean Water Act. We are relievedthat the agency is taking a common-sense approach to this rulemaking,and we will continue to work withstate and federal regulators to keepour waterways clean, said NAHBChairman Barry Rutenberg, a homebuilder from Gainesville, Fla.

Ray Butts of NextEra Energy, Chairof UWAGs Policy Committee,echoed Rutenbergs comments,adding: We appreciate the agencysefforts to work with all of us toaddress specific problems in theunderlying rule that if unresolved would have led to significant andunnecessary cost, engineering andenergy impacts with no appreciableenvironmental benefit.

In addition to withdrawing thenumeric limits, EPA has agreed toclarify the non-numeric portion of therule so that land developers, permitwriters and inspectors betterunderstand what measures are

required to help protect the nationswaterways.

In December 2009, under courtorder, the agency finalized EffluentLimitation Guidelines (ELGs) for theconstruction and developmentindustry to establish the minimumtechnology required to control theimpact of stormwater runoff. EPAestablished both numeric limits andbest management practices, such assilt fences, for certain activeconstruction sites.

NAHB, UWAG and the Wisconsinbuilders challenged the rule shortlyafter it was issued. Pursuant to theparties settlement agreement, EPAhas agreed to sign a notice ofproposed rulemaking to amend its2009 rule by April 15 and agreed totake final action on the proposed ruleby Feb. 28, 2014.

NAHB will continue to educate itsmembers about the importance of

regulatory compliance as they buildnew homes, Rutenberg said. At thesame time, we will remain vigilantabout the costs of compliance andhelp ensure that the money is wellspent because the cost is reflectedin the price of a new home.

Butts noted that this is just one ofseveral significant EPA proceedingsaffecting the electric power industry.We remain hopeful that the partiescommon-sense solution here will bea bellwether of things to come in theagencys other rulemakings.

This settlement is a win for theenvironment and for the recovering

economy, said Wisconsin BuildersAssociation Executive Vice PresidentJerry Deschane. The proposednumeric limits were a one-size-fits-nowhere approach that would havecost a fortune to implement andwould not have improved waterquality. Common-sense bestmanagement practices andunderstandable regulations are thebest path to achieving the goals ofthe Clean Water Act and maintaininghousing affordability.


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8/16

Builders utlook on the scene |

In 2012, the El Paso Association of Builders commemorated our65th anniversay. The year was jam packed with events and celebra-tions. Here, we pay a final tribute to another historical year at EPAB.

The year that was 2012


9/16

2013/1


10/16

List of ImprovingHousing MarketsExpands to 242 inJanuary

In the latest sign of a burgeoningrecovery in U.S. housing markets, thenumber of metropolitan areas on theNational Association of HomeBuilders/First American ImprovingMarkets Index (IMI) rose for a fifthconsecutive month to 242 in January.This is up from 201 markets listed asimproving in December, and includesentrants from 48 states and the Districtof Columbia.

The IMI identifies metro areas thathave shown improvement from theirrespective troughs in housing permits,employment and house prices for atleast six consecutive months. A total of47 new metros were added to the listand six were dropped from it this month.Newly added metros include suchgeographically diverse locations as LosAngeles, Calif.; Auburn, Ala.; DesMoines, Iowa; Nashville, Tenn.;

Richmond, Va.; and Cleveland, Ohio.We created the improving marketslist in September of 2011 to spotlightindividual metros where -- contrary tothe national headlines -- housingmarkets were on the mend, notedNAHB Chairman Barry Rutenberg, ahome builder from Gainesville, Fla.Today, 242 out of 361 metrosnationwide appear on that list, includingrepresentatives from almost every statein the country. The story is no longerabout exceptions to the rule, but aboutthe growing breadth of the housingrecovery even as overly strict mortgagerequirements hold back the pace ofimprovement.

The IMI has almost doubled in thepast two months as stronger demandduring prime home buying seasonboosted prices across a broader numberof metropolitan areas, noted NAHBChief Economist David Crowe. Similarhome price gains, and hence the IMI,may be tempered in the future as wesee data from typically slower monthsfor home sales.

Potential home buyers should beencouraged by the positive momentumin home prices, permitting andemployment that is increasingly evidentin not just isolated housing markets, buta broadening swath of the country,added Kurt Pfotenhauer, vice chairmanof First American Title Insurance

Company.The IMI is designed to track housingmarkets throughout the country that areshowing signs of improving economichealth. The index measures three setsof independent monthly data to get amark on the top improving MetropolitanStatistical Areas. The three indicatorsthat are analyzed are employmentgrowth from the Bureau of LaborStatistics, housing price appreciationfrom Freddie Mac and single-familyhousing permit growth from the U.S.Census Bureau. NAHB uses the latestavailable data from these sources togenerate a list of improving markets. Ametropolitan area must seeimprovement in all three measures for atleast six consecutive months followingthose measures respective troughsbefore being included on the improvingmarkets list.

A complete list of all 242 metropolitanareas currently on the IMI, and separatebreakouts of metros newly added to ordropped from the list in January, isavailable at www.nahb.org/imi. A state-by-state listing of metro areas on the listis also available at:

www.nahb.org/improvingmarkets.



11/16


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HousingStarts Slip,Permits RiseIn November

Following an above-trend rate ofproduction in October, nationwidehousing starts slipped 3.0 percent toa seasonally adjusted annual rate of861,000 units in November,according to newly released datafrom HUD and the U.S. Census

Bureau. Meanwhile, permits for newconstruction rose to their strongestlevel in more than four years, with a3.6 percent gain to 899,000 units.

Many builders have reportedimproving conditions in their localhousing markets and are increasinglyoptimistic about the spring buyingseason, but they are being verycareful not to get ahead of demand,observed Barry Rutenberg, chairmanof the National Association of Home

Builders (NAHB) and a home builderfrom Gainesville, Fla. Meanwhile,

tight credit conditions are still thechief obstacle to a quicker recovery.

The starts report for Novemberreflects a readjustment to a moresustainable level of productionfollowing significant gains in theprevious two months, said NAHBChief Economist David Crowe. Thatsaid, starts in this quarter are stillrunning well ahead of the thirdquarter, and we are on track for aprojected 25 percent improvement inhousing production for all of 2012.Moreover, the fact that issuance ofbuilding permits hit its fastest ratesince July of 2008 in November isindicative of the continued, modestgrowth that we expect to see in new-home construction through 2013.

Single-family housing startsdeclined 4.1 percent to a seasonallyadjusted annual rate of 565,000 unitsin November, while multifamily startsedged down 1.0 percent, to 296,000units.

Regionally, combined single- andmultifamily starts activity was mixedin November. While the Midwest and

South posted respective gains of 3.3percent and 2.9 percent, the

Northeast and West postedrespective declines of 5.2 percentand 19.2 percent.

Permit issuance, which can be anindicator of future building activity,rose 3.6 percent to a seasonallyadjusted, annual rate of 899,000units in November. This was due to a10.6 percent gain to 334,000 units onthe multifamily side, as single-family

permits held virtually unchanged forthe month, at 565,000 units.

Permits rose in all but one regionin November. Gains of 8.1 percent,2.9 percent and 5.9 percent wereregistered in the Midwest, South andWest, respectively, while a 6.2percent decline was registered in theNortheast.

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[email protected]


12/16


Expert Advice

As part of the fiscal cliff rescue

legislation Congress renewed theBuilder Tax Credit in Section 408 ofthe American Taxpayer Relief Act onDec 31. The tax credit, whichexpired back in 2011, has beenretroactively restored and extendeduntil Dec. 31, 2013. Back to reality,now that everyone had time to rest,well... if you can say that about theholidays.

Nevertheless its always nice to gothru this season with family andfriends. But its also nice to plan forthe New Year, new projects, newgoals, and objectives, newchallenges to overcome. As always,I will be writing about energy, andthe extension of the EnergyEfficiency Tax Credit. It expired backin December 2011 but now providesa $2,000 Tax Credit for builders thatmeet a threshold of 50% reductionof Heating and Cooling load on newhomes.

The main intent is to encouragebuilders to use more energy efficientpractices while building their newhomes. With this Federal Incentiveeverybody wins; the builder receives

an incentive which offsets the extracost of building energy efficient

homes; the home buyers get a more

comfortable energy efficient home;suppliers are able to sell a few extraproducts or energy efficientupgrades from their standardoffering; and regardless of yourinterest on Climate Change a moreenergy efficient home also does itspart to reduce its carbon footprintthru energy efficiency.

How to qualify for the Tax Credit?Its very straight forward: if you arealready doing Energy Star Version 3or ECO Home you are a step closerto qualify for the Tax Credit. Thisdoesnt mean that just by beingEnergy Star rated you alreadyqualify, no, this is just a good start.In reality they are a little bit different,but they go thru the similar processby using the HERS qualificationprocess and testing, with a focus ofreducing the Heating and Coolingload of the entire homes by followingcertain parameters that I can assistyou achieve. I have to say the TaxCredit is not something hard toachieve, but energy efficiencyupgrades need to be implementedwith a goal of doing it thru the most

cost effective strategy.In summary if you build a home

thats 50% more energy efficient on

heating and cooling you can get$2000 back in your pocket; if youbuild a manufactured home thats30% more energy efficient, you get$1000. You dont have to be alicensed builder to earn it; the taxcredit (which is as good as cash,versus a deduction) goes to anyonewith a financial interest in thebuilding of the home. It could beanyone who builds and then sells orleases the residence, whether thatsa homeowner, a design/build firm, ora production builder. The onechange is the baseline for themeasurement of energy efficiency- itused to be the 2003 InternationalEnergy Conservation Code (IECC)but now has been changed to the2006 IECC. Since the worst homeyou can legally build (according tocode) is better than the 2006 IECC,you should definitely look intoqualifying to meet the Tax Creditparameters. If you would like tolearn more about how to qualify yourhomes, please contact us at

[email protected] or call me at915-613-4168

Energy Efficiency Tax Credits are BACK

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UPCOMING EVENTS |

RENEWALS |

JANUARY 18-20SPRING HOME SHOW

CIVIC CENTER

JANUARY 18-23NAHB MEETINGS

LAS VEGAS, NEVADA

JANUARY 22-24INTERNATIONAL BUILDERS

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14/16

Its 2013 and it seems like last yearflew by. I know that when it came tothe work we do at the association theyear was at times difficult andchallenging but never boring. I wouldlike to think that 2013 will be a year oftransformation and of recommitmentfrom all of you. I cant begin to stresshow important it will be for each oneof you to be committed to the goals

and financial health of the associationas we begin our 66th year in El Paso.

While tradition plays into my request Iwant to issue a challenge to thenewer and younger members of ourassociation. I challenge each of youto make 2013 better than last yearand work to make 2014 better than2013. This is after all an associationthat has its roots in toughness, withsensitivity to a majority whose voiceis often not heard. It will require workand commitment on your part and itstarts with attending meetings,getting involved in events, and gettingan ad in the Outlook. Since you havea copy in your hands or on yourscreen look at who advertises andask yourself why are they doing this.

As a board member Im looking atthe financials for this organization ona very regular basis. It is afterall a

business that struggles like any other,and in some cases can do little about

that struggle. As Associate memberswe are holding a key to unlock thepotential for this place right in ourhands. Its called advertising andmarketing. Your business like minehas a line item for advertising andmany times I rely on my suppliers andvendors to help me with thatadvertising. What I have learned fromRay is that I need to look atadvertising in the associationpublications for several reasons: it istargeted to readers who are bothindividual and bulk buyers; it is microtargeted rather than shotgunadvertising, hoping to hit somethingby mere chance; it is a good buywhen you consider you get full colorads in print and on line; it benefits theassociation by making money for the

association. Fact is that withoutadvertising revenue from less than 30

members this association couldvefolded over the last few years. Inever looked at our advertising insuch a way but have come to realizehow important it is for the EPAB andhow much you can benefit by placingan ad.

Over the next few months you maysee new faces approaching you tobuy advertising in the Outlook, thedirectory, Build Book, or Su CasaNueva. Dont get confused on thelast one as we have been told apublication with no affiliation to theEPAB has begun marketing in ElPaso. They do not belong to orprovide income to the association. Ifyou have any questions call theEPAB office to ask. And while youlook at what you should do think

about advertising right here right now.


Sam ShallenbergerWestern Wholesale Sup ply

Associates Council

Builders utlook on the scene |January BODMeeting & TrainingThe first meeting of the 2013 Boardof Directors was held on January 10at the association conference andlearning center. New board memberswere introduced and some whocouldnt attend the installation wereinstalled by the executive committee.The board reviewed financials andalso approved the 2013 budget.Following the meeting the board tookpart in an orientation designed to helpboard directors better understand theirposition in the association, what toexpect, and what responsibilities theyhave been entrusted with.The next board/general meeting willtake place on Valentines day,February 14 at the El Paso Club. Callthe association for information.


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execuTive oFFicerSed nd D na P s d nt

Accent HomesF ank T s v P s d ntGMF Custom Homesedga m nt l S ta y/T as Palo Verde HomesSa Shall nb g Ass at s cha Western Wholesale

F ank A y s- i d at Past P s d ntCisco Homesray Ada t e t v P s d ntEl Paso Association of Builders

couNciL/commiTTee cHAirS

Ass at s c n lSam Shallenberger B ld PAcRandy BowlingD s t G n B ld ng c n lJavier RuizLand us c n lSal Masoud

Y ng D s gn Awa d

John Chaneyr d l s c n lRudy Guelm b sh p r t nt nMike Santamaria, Greg BowlingF nan c ttEdgar MontielW ns c n lLorraine Huit

ADviSorY To THe BoArDJ. Crawford Kerr, Attorney, Firth, Johnston

& Martinez

BoArD oF DirecTorSJuanita Garcia, Icon Custom BuildersSamira Gonzalez, Edwards HomesWalter Lujan, Dawco ConstructionCarlos Villalobos, Pointe HomesDon Rassette, Rassette HomesBeverly Clevenger, Automated Division 6 BuildersFrank Spencer, Aztec ContractorsKathy Parry, Hunt CommunitiesSal Masoud, Del Rio EngineeringRobert L. Foster,

Southwest Land Development ServicesLeti Navarette, Custom Dream HomesLinda Troncoso, TR-EngineeringLance VanDeman, Hub InternationalJohn Chaney, Passage SupplyJoe Bernal, El Paso Employee BenefitsKen Wade, El Paso Building MaterialsRuben Orquiz, MTI Ready MixKathy Carrillo, Pioneer BankHenry Tinajero, West Star BankPaul Zacour, Zacour & AssociatesChuck Gabriel, Carpets WestTed Escobedo, Snappy PublishingLorraine Huit, Cardel DesignJavier Ruiz, Border Solar & Senercon

2012 B ld m b of Th Y a Frank ArroyosCisco Homes

2012 Pat c Awa dMike Santamaria

Mountain Vista Homes

2012 Ass at of Th Y a Sam Shallenberger

Western Wholesale Supply

J hn S hatz an Awa dHunt Companies

H n a y L f m b sRudy GuelBrad Roe

Cliff AnthesWayne Grinnell

Chester LoveladyDon Henderson

Anna Gil

Past P s d ntsc tt d t S

ePAB m ss n Stat nt:The El Paso Association of Builders is afederated professional organization representingthe home building industry, committed toenhancing the quality of life in our community byproviding affordable homes of excellence andvalue.The El Paso Association of Builders is a501C(6) trade organization.

2013 Builders Outlook

is published and distributed for theEl Paso Association of Builders

by Snappy Publishing240 Thunderbird Suite C

El Paso Texas 79912 915-820-2800

6046 Surety Dr. El Paso, TX 79905915-778-5387 Fax: 915-772-3038

Greg BowlingKelly Sorenson

Mark Dyer Mike Santamaria

John CullersRandy BowlingDoug SchwartzRobert Baeza

Bobby Bowling, IVRudy Guel Anna Gil

Bradley RoeBob Bowling, III

E. H. BaezaHershel Stringfield

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

BuiLDerS

(800)252-3625

www.elpasobuilders.comwww.epbuilders.org

Builders utlook


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builders outlook 2013 issue one

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