builders outlook 2013.09

7/29/2019 Builders Outlook 2013.09

1/16

Builders utlook

www.elpasobuilders.com www.epbuilders.org

2013

issue 9

The smell of paint and the busyworkers setting up will be the scene

the week of October 11 as the returnof a Fall Home and Garden Showtakes center stage at the Judson F.Williams Convention Center.Produced by Show Technology ofSan Antonio, this years El Pasoshow will feature 100 exhibitors andshowcase some of El Pasospremier businesses. The three dayshow is designed to offer consumersan opportunity to spruce up theirhomes for the holidays and beyond.

Were so glad to be coming to ElPaso especially right before

Thanksgiving and Christmas, saidTommy Mantini of Show Technology.Our years of producing home andgarden shows will be apparent toboth the consumer as well as thevendors exhibiting at the show, hecontinued. Show Technologypurchased the previous rights fromanother producer who had the dateslocked up. We wanted to ensurethat if we came into El Paso that wewould be in good shape in the springand fall, so we bought out the showand secured the dates we needed,Mantini said.

Ray Adauto, Executive VicePresident of the El Paso Associationof Builders said that the associationwas approached by the producerswith the idea of sponsoring theHome and Garden Show. We havebeen involved in Home shows fordecades and have been associatedwith some great and not so greatproducers. In this case we areexcited and pleased that the Mantinifamily has taken over the localshow, Adauto said. Our fellowassociations across Texas havebeen working with Show Technology

for years and now we are as well.The idea to showcase your

business is nothing new to some ofour members, like TropicanaHomes. We have been successfulin previous shows because we treatthe show as an opportunity, saidGreg Bowling. We basically add amodel home into show and welcomeconsumers to it, he continued.Tropicana has a great track record ingetting customers out of visitors whonever expected to be able to buy a

home at the show. When theycome in they might be looking to fixup their place, but we can show

them how buying new makessense, Bowling said.

This show will show feature HVAC,solar, and building material vendors.One feature that visitors will like isthe Gardening experts from localuniversities extension services. Inaddition TV sensation AhmedHassan from DIY Network fame willbe conducting seminars andanswering questions from thevisitors. Ahmed was here two yearsago and he was sensational, saidEPABs Adauto. Not only is he thefavorite of many hes also really

knowledgeable when it comes toturning your yard into your dreamshowcase, Adauto continued.

The show will open Friday October11 at 2 p.m. and go until 7, followedby Saturday 10-7 and Sunday hours11-5. To reserve a booth or spacecall Show Technology Productions at-1-866-663-6186. Log in towww.elpasohomeandgarden.comfor more information.

Accent Homes teams up

to present home at Fall

Home and Garden ShowEdmundo Dena, President of

Accent Homes and President of theEl Paso Association of Buildersannounced that Accent has agreedto construct a show home inside theJudson F. Williams ConventionCenter for the Fall Home andGarden Show. This will be AccentHomes first venture into this type ofdisplay but Dena said he is lookingforward to it.

I think that Accent has such anawesome product line that we

couldnt find a reason not to do this,Dena said to the Outlook. We arepleased to be working with ShowTechnology Productions to makesure our display home is somethingshow goers will appreciate, hecontinued. We try to display localbuilder talent at our events like thisand we are extremely excited thatAccent Homes has undertaken thisendeavor, said Tommy Mantini ofShow Technology. We have greatbuilders do this around the country

and adding Accent Homes to ourstable of talent will make this showsomething special, he continued.

Dena said that he is working withhis suppliers and vendors to showoff their products and what it wouldlook like inside an Accent Home.The display will feature severalrooms (or vignettes) that you wouldfind in a real home. Our vendorsand suppliers will help us put thelatest and greatest inside our showhome and visitors will be told whereto find those, Dena continued.

Western Wholesale Supply will bea part of the Accent Home display.When we were asked by AccentHomes to participate we jumped at

the opportunity, said SamShallenberger. We supply the realthing to Accent Homes and somoving into the convention center issomething we look forward todoing, he continued.You can check out the show homeOctober 11-13 at the Fall Home andGarden Show.

EPAB to host

Fall Home &Garden Show

Friday, October 11, 2:00 p.m. - 7:00 p.m.Saturday, October 12, 10:00 a.m.-7:00 p.m.Sunday, October 13, 11:00 a.m. - 5:00 p.m.

To reserve a booth or space call Show TechnologyProductions at -1-866-663-6186. Log in towww.elpasohomeandgarden.com for moreinformation.


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2 Builders Outlook 2013 issue 9

NATURAL GAS IS THE BLUEPRINT FOR SUCCESS.

The most successful builders see that natural gas homes are instantly more attractive to buyers.

When you build homes equipped with natural gas and weatherized with energy-efficient windows and insulation,

you can reduce your customers utility bills year-round and help boost your sales numbers today.

For more on how to use natural gas to turn prospects into buyers, contact Eduardo Lucero at

[email protected] or (915) 680-7216.

www.texasgasservice.com

Texas Gas Service provides natural gas to more than 620,000 customers in the state of Texas, including customers in Austin, El Paso, the Gulf Coast and the Rio Grande Valley. Texas Gas Service is a division of ONEOK, Inc. (NYSE: OKE), a diversified energy company. ONEOK is the

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company. For more information, visit www.texasgasservice.com. 2013

ONEOK, Inc. Oklahoma Natural Gas Kansas Gas Service ONEOK Partners, L.P.


3/16

Presidents Message |

El Paso Disposal

772-7495

32013 issue 9 Builders Outlook

Edmundo

Dena

President,El Paso Associationof Builders

Showroom:2131 Missouri

915 533 6045 fax 533 6096

Thomas R. Brown, Owner

The kids are back in school. Homework for them, homework of

another kind for me. As the month started we were busy at Accent

Homes, and hopefully you have been also. Its not that I mind being

busy because I can remember (as you can also) the days when we

were wondering if wed sell a home or not. So Im not complaining but

I am telling you that in todays business world theres so much more to

business than what I ever imagined. We are starting to see some of the

effects the new health care act already and were seeing some of the

effects from an economy not ready to really get going. While we work

our way through those two things weve had new increases in permit

fees and new regulations. So once again I wonder how well cope andthen find out well do just fine. I think that many of you successfully

maneuver the world of business just like me, optimistically.

September is relatively quiet but the coming months will feature some

of our big events again, including the Fall Home and Garden show in

October, a Halloween themed bowling tournament on October 29 and

then its on to November and all that it brings. So Ill get back to working

for a living and helping at the Association. Ill also encourage you to

consider your opportunity to serve the EPAB by getting involved in the

Board and in all the events we have planned. Until then, go out and sell

something.


4/16

Sometimes you cant tell the

seasons without looking at ESPN.

Other times all you have to do is look

at government. Tis the season for

things to happen, good and bad. First

the issues with how we are going to

pay the increases of property taxes

are just being realized. It will take a

few more months before the reality

sets in as property owners finally open

the tax bill and decide that they

shouldve paid better attention.Higher taxes means less home sales,

less sales means less work for

builders and associates alike. It is the

proverbial struggle of being able to

afford what you want to buy or better

yet buying a little above your means

but still buying. Not today it seems.

Interests rates have gone up and

while theyre still at or near historic

lows. The national media and the

NAHB say that home building is up

and thats true since it was so far down

the tubes a while ago that any

movement in a positive direction is,

well, positive. The caveat is that the

economy is still fragile and with

Congress not able to come to terms

on the debt limit and health reform,

food stamps or other entitlements

the mood of the buyers market may

be wait and see. What we have to

fear is that the government doesnt get

funded. I dont want to see the military

get IOUs while the Congress gets

paid like usual. That spells troubleeven in a Republic like ours.

Locally at some point the

governments are going to have to quit

spending on anything outside of the

basic role of government: provide for

the safety and welfare of the citizens.

I have long railed against wasteful

spending by the bureaucrats and

politicians. Last month I told you the

story of the move to put expensive

roundabouts on Van Buren and

Monroe streets, and the

overzealousness of city staff to do it

despite my objections to the costs. I

have yet to hear from the District 2

office or anyone else within the city but

Im sure the editorial was read by

some of them. I am hopeful that the

plans to put the crop circles there are

scrubbed. I also hope the paving is

done that is sorely needed there as

well as in many other parts of the city.

I also think that using the money to

chop the weeds from the streets and

rights of way would show the city istaking care of its properties just like

they are forcing private citizens to do

via citations or warnings. It is

important that the politicians who ran

on the mantra of being more business

friendly actually show that they are

willing to clean their house before

making others do it, or at least lead

the way. A show like this would go a

long way in turning a campaign slogan

into an action.

Finally, speaking of the rains we just

experienced Id like to think we would

be better prepared for it with so much

money spent on upgrades and work to

create a new stormwater utility. To be

fair some of it was better, but on the

whole we didnt get the same amount

of rain we did in 2006, not even a 10th

of that deluge. So why, we ask, did I-

10 flood and stop interstate traffic?

Lack of pumps? No way to get the

water out? Interestingly the

stormwater utility brought in two giant

pumps and dumped the water onto theroads next to the new ponding sites.

So the new went into the old. I ask

this: why hasnt the interstate been

raised so that lanes are above the

water level. By now the work would

have been done and there would be

no flooding. Just a thought to end my

column. Makes you think, doesnt it.

Perspective

Ray Adauto,ExecutiveVice PresidentEPAB


Questioning the role of government


5/16


Builder ConfidenceUnchanged in SeptemberFrom NAHB

Following four consecutive months of

improvement, builder confidence in the marketfor newly built, single-family homes heldunchanged in September with a reading of 58on the National Association of Home

Builders/Wells Fargo Housing Market Index(HMI), released today.

While builder confidence is holding at thehighest level in nearly eight years, many arereporting some hesitancy on the part of buyersdue to the sharp increase in interest rates,said NAHB Chairman Rick Judson, a home

builder from Charlotte, N.C. Home buyers areadjusting to the fact that, while mortgage ratesare still quite favorable on a historic basis, therecord lows are probably a thing of the past.

Following a solid run up in builder

confidence over the past year, we are seeing apause in the momentum as consumers wait tosee where interest rates settle and as theheadwinds of tight credit, shrinking supplies oflots for development and increasing laborcosts continue, noted NAHB Chief Economist

David Crowe.Derived from a monthly survey that NAHBhas been conducting for 25 years, the

NAHB/Wells Fargo Housing Market Indexgauges builder perceptions of current single-family home sales and sales expectations inthe 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 fromeach component are then used to calculate aseasonally adjusted index where any number

over 50 indicates that more builders viewconditions as good than poor.

HMI component indexes were mixed inSeptember. While the component gaugingcurrent sales conditions held unchanged at 62,the component gauging sales expectations inthe next six months declined three points to 65

and the component gauging traffic ofprospective buyers increased one point, to 47.

All four regions posted gains in their three-month moving average HMI scores inSeptember, including a two-point gain to 41 in

the Northeast, a four-point gain to 64 in theMidwest, a two-point gain to 56 in the Southand a four-point gain to 61 in the West,respectively.

Single-Family ProductionPushes Housing Starts UpFrom NAHB

Led by a solid increase in single-family

starts, nationwide housing production rose 0.9percent to a seasonally adjusted annual rate of891,000 units in August, according to figuresreleased today by the U.S. Department of

Housing and Urban Development and the U.S.Census Bureau. Meanwhile, construction ofmultifamily buildings slowed following arebound in the previous month.

Overall, this is an encouraging report asbuilders are seeing pent-up demand begin tobe released for single-family homes despite

headwinds such as rising mortgage rates andtight credit conditions, said Rick Judson,chairman of the National Association of HomeBuilders (NAHB) and a home builder fromCharlotte, N.C.

This is the kind of signal weve beenlooking for, with single-family starts andpermits up or holding steady across everyregion in the nation, said NAHB ChiefEconomist David Crowe. Todays report isreflective of gradual improvement in buyer

confidence in the overall market and ourrecent surveys that indicate a solid outlook forsingle-family production. On the multifamily

side, we are catching up with underlying rentaldemand. We expect to see additionalmultifamily starts in the future, but not as rapida pace of growth as weve seen in the past.

Single-family housing starts rose 7 percent

to a 628,000 unit pace. Regionally, single-family starts activity rose 9.6 percent in theNortheast, 7.1 percent in the Midwest, 2.3percent in the South and 17.5 percent in the

West.The annualized rate of multifamily

production fell 11.1 percent to a seasonallyadjusted annual rate of 263,000 units.

Overall building permits, which are anindicator of future building activity, declined 3.8percent to 918,000 units in August. This was

due entirely to a pullback in the multifamilysector, where permits fell 15.7 percent to291,000 units. Single-family permits posted a3 percent gain to 627,000 units the best pacesince May of 2008.

Regionally, single-family permit issuanceincreased 2.9 percent in the Midwest, 2.5percent in the South, 5.3 percent in the Westand held steady in the Northeast.

Record High 291 Housing

Markets Listed As ImprovingFrom NAHB

A total of 291 metropolitan areas across thecountry now qualify as improving housing

markets, according to the National Associationof Home Builders/First American ImprovingMarkets Index (IMI) for September, releasedtoday. This reflects a gain of 44 markets fromAugust and marks the indexs highest levelsince it was initiated two years ago.

The IMI identifies metropolitan areas thathave shown improvement from theirrespective troughs in housing permits,employment and house prices for at least sixconsecutive months. In September, 242

housing markets retained their existingpositions on the IMI while 49 new marketswere added and five were dropped from the

list. Recent additions include suchgeographically diverse locations as Macon,Ga.; St. Cloud, Minn.; Brownsville, Texas;

Spokane, Wash.; and Milwaukee, Wis.Just over 80 percent of the 361 metros

tracked by our index are showing consistentgrowth in three key measures of housingmarket strength prices, permits and

employment, explained NAHB Chairman RickJudson, a home builder from Charlotte, N.C.While there is still plenty of room for growth,this is an excellent indication of how thehousing recovery has begun to take holdacross more geographic areas.

The dramatic increase in markets qualifyingfor the IMI in September was partly due to arecent improvement in the way that FreddieMac measures home prices, which resulted in

stronger gains than previously reported,noted NAHB Chief Economist David Crowe.Even so, the broadened list of metros on theIMI continues to demonstrate the slow butsteady gains that individual housing marketsare making to bolster the national outlook.

With every state now able to claim at least

one county thats part of an improving metro,and 23 states having charted at least one newentry in September alone, prospective homebuyers have good reason to be encouraged bythis news, said Kurt Pfotenhauer, vice

chairman of First American Title Insurance Co.The IMI is designed to track housing

markets throughout the country that areshowing signs of improving economic health.The index measures three sets of independentmonthly data to get a mark on the top

Metropolitan Statistical Areas. The threeindicators that are analyzed are employmentgrowth from the Bureau of Labor Statistics,house price appreciation from Freddie Macand single-family housing permit growth from

the U.S. Census Bureau. NAHB uses thelatest available data from these sources togenerate a list of improving markets. A metroarea must see improvement in all threemeasures for at least six consecutive monthsfollowing those measures respective troughs

before being included on the improvingmarkets list.

A complete list of all 291 metros currently onthe IMI, and separate breakouts of metrosnewly added to or dropped from the list in

September, is available at www.nahb.org/imi.

Industry News


6/16



7/16

72013 ISSUE 9 Builders Outlook

Builders utlook on the scene |

The 2014 Young Designer

contest has started with the new

school year and while its just

gotten under way the students are

anxious to get going. Association

Secretary Treasurer Edgar Montielof Palo Verde Homes hosted the

high school seniors to learn about

construction from the ground up.

Students are enrolled in the El

Paso Independent School DistrictCenter for Career and Technology

Education (CCTE) taught by

Cecilia Orozco. John Chaney from

Passage Supply is the chairman of

the YD events.

The students represent several

high schools in the district including

Jefferson, Bowie, Andress, Austin,

Irvin, El Paso, Franklin and

Coronado. Students attend their

respective home high schools andthen head out to the CCTE campus

at the old El Paso Tech. We havea lot of kids that have done very

well with our program and were

grateful for all the help the Builders

Association has provided, said Ms.

Orozco. For our part getting the

students out to an actual worksite

is important, and having Edgar

Montiel host them is really cool,

said John Chaney.

Montiel gave the students a lot of

information that they quickly

devoured and took plenty of notes

on. It is really good to see thatthese students want to get into the

construction business, as

draftsmen, architects, builders, or

in specialty sub-contracting

businesses, Montiel told the

Outlook. We know that the

demand for qualified professionals

in our industry is important, so

working with the students and thedistrict is vital to continue our

growth, he continued.

While touring the worksite at

Cimarron the students were also

greeted by EPAB PresidentEdmundo Dena. Watching the

note taking and the interest in what

is going on inside and outside the

homes showed me that these

students really want to learn, Dena

said.

The annual Young Designer

Scholarship Contest utilizes a

problem solving methodology

whereby the student is given a

situational problem, asked todesign to it, and complete a set of

plans and an elevation showing theresults of the problem solving.

We have seen so many different

approaches to the same problem

over the years that frankly we look

forward to seeing the plans and

models these students create,

said Ray Adauto.

Our special thanks go out to Ceci

Orozco, John Chaney, Edgar

Montiel, Edmundo Dena, Ray

Adauto, Palo Verde Homes,

Edwards Homes, and Accent

Homes for this special trip. Anotherouting is planned for the juniors

participating in the CCTE.

of Texas

TM

+

Young Designers visit construction site


8/16

The lobby of theCONRAC structurewill be three levelshigh. (Renderingcourtesy City of ElPaso)

el paso development news

Northeast El Paso to get more retail optionsNorth Hills Crossing May Bring New Stores

The North

Hills Crossing

shopping cen-ter may bring

several new

retailers to

Northeast El

Paso. Tenantsare oftentimes

used for illus-

trative purpos-

es by develop-

ers and subject

to change.

Site plan showing a restaurant row at the corner of Edgmere Boulevard and

Joe Battle. (Image: www.rjlrealestate.com)

Residents of Northeast El Paso

may have several more retailersand restaurants to choose from in

the coming years as the North HillsCrossing shopping center takesshape. The 28 acre center will be

located at the corner of MartinLuther King Jr. Boulevard and US-

54.The 200,000+ square foot power

center has two site plans at thewebsite of RJL Real Estate consult-ants (www.rjlrealestate.com), one

that is part of the website andanother shown on the marketing

brochure. Each site plan differs butshows a mix of big box and mediumsized retailers as well as restaurant

options.

Both plans include retailers such

as Ross, Marshalls, Michaels,Rack Room Shoes, Office Depot,

and restaurant Taco Cabana.Restaurants and smaller retailshops will be located on out-

parcels along the frontage roadand Martin Luther King Jr.

Boulevard.The brochures site plan shows a

Walmart Market grocery store aswell as smaller PetSmart, DollarTree, and Annas Linens locations in

the big box area. The outparcelsinclude Panda Express,

Whataburger, Chick-Fil-A, FiveGuys Burgers & Fries, Verizon, andDunkin Donuts locations.

The site plan according to the

website is somewhat different show-

ing retailers and restaurants suchas JCPenney, Taco Cabana, Peter

Piper Pizza, AutoZone, and ChaseBank. There are also spots for afuture grocery store, pet store, sit

down restaurant, and drive-thrurestaurant.

North Hills Crossing, located tothe south of Bungalows at North

Hills apartment complex, is beingdeveloped by Southwest LandDevelopment Services, according to

the marketing brochure. No con-struction or opening dates are avail-

able for the project, and retailersincluded in the site plans may alsobe tentative.

Restaurants ExpandFurther East in El Paso

A 16 acre shopping center in far east El Paso is cre-ating a restaurant row of sorts at the northeast corner

of Joe Battle Boulevard and Edgemere Boulevard.Three restaurants will join McDonalds and Taco Totelocations already at the site.

Applebees, Village Inn, and Starbucks Coffee will allhave a presence at the shopping center, according to

a marketing brochure at the website of RJL RealEstate Consultants (www.rjlrealestate.com). The

brochure highlights other available spaces at the cen-ter, including a restaurant space and a bank building.

The newest restaurants will line Joe Battle

Boulevard in the typical strip center fashion that ElPasoans are accustomed to experiencing. The 16.9

acre center is across Edgemere Boulevard from theSierra Providence East Medical Center complex whichis also undergoing expansion.

As usual, potential tenants in developing shoppingcenters are subject to change, and this may not be the

finalized list of restaurants to be located at the site.


9/16

The Consolidated RentalCar Facility at the El Paso

airport will have a threelevel parking structure. Acovered pathway will taketravelers to and from thebaggage claim area.(Rendering courtesy ofCity of El Paso)

Builders Outlook Issue 9.2013

Content provided byEl Paso Development Newsvisit: elpasodevnews.com

City Debuts Renderings of Airport Rental StructureNew renderings provided by the

City show what the future rentalgarage will look like at the El PasoInternational Airport. The structure,officially called the El PasoConsolidated Rental Car Facility, or

CONRAC for short, will also includea City-commissioned piece of publicart that will hang in the lobby.

The CONRAC structure will be athree level parking structure at theairport which will be used by rental

car companies for pick up and returnof automobiles used by travelers. Itwill include 650-700 parking stallsand was designed using smartgrowth principles, including a focuson pedestrian accessibility.

Included in the structure will beReady and Return areas, customerkiosks, fueling and car wash areas, alight maintenance facility, and vehiclestorage for use by the rental compa-nies. The architectural design is by

Demattei Wong Architecture, Inc. ofCalifornia under a contract approvedby the City last October.

Inside the three-level tall lobby ofthe CONRAC will hang a public artpiece that will float above travelers

heads. A three-dimensionalMandala will incorporate iconogra-phy from El Pasos mix of culturesusing multiple colors to suggest asunset, according to the website forthe co-designer, MetaLab Studio of

Houston (metalabstudio.com).MetaLab designed the piece in col-laboration with RE:site Studio.

Construction should begin within ayear on the $45 million CONRACproject, according to the Department

of Aviations Capital ImprovementPlan revealed last month. The struc-ture will be located immediately tothe west of the baggage claim areaof the airport terminal.

A new roundabout at the Universityof Texas at El Paso (UTEP) openedto traffic in time for the first day ofclasses last Monday. The round-about is part of the larger Schusterextension project that will take theavenue over Interstate 10 and con-nect to West Paisano Drive.

According to the schools On theMove website(www.onthemove.utep.edu), a por-tion of the P-4 parking lot has beenrestriped and opened for use.

Pedestrians can also now walkunderneath the completed round-about to access the campus.

The new road is officially titledSpur 1966 in reference to the nation-al champion Texas Western basket-ball team, the college that would berenamed UTEP years later. It is stillthe only university in the state ofTexas to win a national champi-onship in basketball.

A 0.7 mile bridge will allow a newinterchange between Schuster

Avenue and the future BorderHighway West. The Yandell Drive

bridge will be demolished as part ofthis project. Haydon Building Corp.(haydonbc.com) of Phoenix is thecontractor on the $55 million project.

Inside the core of UTEP, the muchheralded Campus Transformationcontinues to take shape. TheWiggins Plaza project is nearingcompletion as crews put the finishingtouches on the landscaping of thearea. New shade trees, seatingareas, and an elliptical labyrinthhave taken up an area between theLibrary and Health Sciences build-ings.

University of Texas System Boardof Regents recently approved $10million to continue theTransformation projects, includingCentennial Plaza in the middle ofcampus. The area, formerly occupiedby grassy hills, parking lots, andstreets, is currently a pile of dirt.Transformation projects are timed tocoincide with next years CentennialCelebration and aim to removevehicular traffic from the inner partsof campus.

UTEP Update:Schuster Roundabout Completed, Transformation Work Continues

This birds eye view

of Wiggins Plazashows the ellipticallabyrinth locatedbetween theUniversity Library andthe Health Sciencesbuilding. The plazaincludes traffic calm-ing measures forvehicles.(www.onthemove.utep.edu)

Yucca Park Improvements

The City of El Paso held a com-munity meeting last week to informresidents of scheduled improve-ments to Yucca Park. A 1.65 acreexpansion will add recreation areaon the northern side of the park.

Improvements to the park includenew sod, trees, and landscaping aswell as a dedicated 2,000 squarefoot chess-playing area that will besheltered by a metal canopy. Thisarea will include four game tableswith a chess board insert; each willhave three attached seats and anempty spot for wheelchair access.A large, 144 square foot red andblack chess board will be locatedon the floor in the middle of thearea.

The park expansion will also addfour new 16 by 16 picnic units withshade structures, multiple concrete

paths, benches, scores of newtrees, and runoff controls. YuccaPark is currently at 16 acres in sizeand is located at the corner ofYarbrough Drive and YermolandDrive just south of Bel Air HighSchool.

City Council awarded the con-struction contract to Globe Buildersof El Paso in July. Constructionshould begin this month with thecompletion expected by Februaryof 2014.


10/16


401(k) BasicsMost (85 percent) of employers with

ten or more full-time workers find definedcontribution (DC) retirement plans, suchas 401(k)s, valuable in helping to retain,recruit and motivate employees. And asurprising 72 percent of similarly sizedemployers that do not offer a DC plan

agree.* To find out why, read on.Advantages for EmployeesA 401(k) plan allows employees to

contribute to an individual retirementsavings account set up on their behalf bythe employer. Employees enjoy thefollowing advantages: They can make salary deferral

contributions to traditional 401(k)s,reducing current taxable income.

They do not have to include employercontributions in their taxable incomeuntil they withdraw the funds. (Subjectto certain limitations.)

They can direct their funds into variousinvestment vehicles, if their plan allows,according to their appetite for risk and

other factors. Their funds will grow tax-free until they

are distributed. They can easily see their retirement

balances at any time, unlike traditionalpensions, which require complicatedactuarial calculations.

They own their accounts; they can takeall vested funds with them if they leaveyour employ.

A 401(k) plan offers the followingadvantages to employers:

Employers can use a well-designedplan to help attract and keep talentedemployees.

Employee salary deferral contributions

reduce employers payroll tax liability. Employers can deduct their

administration expenses and anycontributions they make to employeesaccounts as business expenses.

Employers limit their liability to adefined contribution, unlike withtraditional pension plans.

To set up a 401(k) plan, employers mustadopt a written document that serves asthe foundation for day-to-day planoperations. If you have hired someone tohelp with your plan, that person likely willprovide the document.

Once you have decided on a 401(k)plan, you will need to choose the typeplan that is best for youa traditional401(k) plan, a safe harbor 401(k) plan, orSIMPLE 401(k) plan.

Traditional 401(k) Plans

A traditional 401(k) plan allows eligibleemployees to make pre-tax electivedeferrals through payroll deductions.

Employers can make contributions onbehalf of all participants, make matchingcontributions based on employeeselective deferrals, or both. In traditional401(k) plans, you can design your planso that employer contributions vest over

time, according to a schedule.Employees forfeit unvested funds whenthey leave your employment. (Employeecontributions are always 100 percentvested, or owned, by the employee.)

Traditional 401(k) plans cannotdiscriminate in favor of highlycompensated employees. This meansaverage deferred wages and employermatching contributions for highlycompensated employees cannot greatlyexceed average deferrals and matchesfor non-highly compensated employees.To ensure that the plan satisfies theserequirements, the employer mustperform annual tests, known as theActual Deferral Percentage (ADP) andActual Contribution Percentage (ACP)tests.

Safe harbor 401(k) Plans

A safe harbor 401(k) plan letsemployers avoid the nondiscriminationtests that apply to traditional 401(k)plans. It resembles a traditional 401(k)plan, but, among other things, requiresemployer contributions that are fully

vested when made. Employers can makematching contributions limited toemployees who defer, or contributions onbehalf of all eligible employees,

regardless of whether they make electivedeferrals.

Employers sponsoring safe harbor401(k) plans must satisfy certain noticerequirements. Each eligible employee forthe plan year must receive written noticeof his/her rights and obligations under theplan. The notice must describe the safeharbor method in use and how eligibleemployees make elections, and otherpertinent information.

Employers of any size can use atraditional or safe harbor plan; they canalso combine these plans with otherretirement plans.

SIMPLE 401(k) Plans

The SIMPLE 401(k) plan gives smallbusinesses a simple, cost-efficient way tooffer retirement benefits to theiremployees. It exempts plan sponsorsfrom the annual nondiscrimination teststhat apply to traditional 401(k) plans. Aswith a safe harbor 401(k) plan, theemployer must make employercontributions that are fully vested.

To be eligible for a SIMPLE 401(k), an

employer must have 100 or feweremployees who received at least $5,000in compensation from the employer forthe preceding calendar year and no other

employee retirement plan.Roth Contributions

Employers with a traditional, safeharbor or SIMPLE 401(k) plan can allowemployees to make Roth contributions, ifplan documents permit. With Rothcontributions, employees designatesome or all of their contributions as Rothcontributions and make them with after-tax dollars. This lets them avoid taxationon these funds when withdrawn afterretirement, subject to certain conditions.

IRS code limits the total amountcontributed to all 401(k) accounts fromboth employers and employees,including Roth contributions, for any oneyear. For 2013, contributions cannotexceed $17,500, plus an additional$5,500 in catch-up contributions forparticipants age 50 or older by year-end.Limits typically increase every year toreflect cost of living adjustments.

Over time, a 401(k) fund can grow intoa tidy nest egg and help you retainvaluable employees. For moreinformation on setting up a 401(k) plan,please contact us.

*Source: American Benefits Institute,Attitudes of Employee Benefits DecisionMakers Toward Retirement Plan TaxProposals, December 11, 2012

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Joe BernalEmployee Benefits

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11/16

its tme to getserous aboutyour retrement.The El Paso Association of Builders is proud to now offer anindividualized retirement plan created for you.ThE EPAB MEMBEr rETirEMEnT PlAnAs a EPAB membe, you ave te uque oppotuty to take coto of

you etemet vestg.

We udestad te caeges of etemet pag. Tats wy we ave

pateed wt Empoyee Beefts of E Paso to offe you te oppotuty

to ceate a dvduazed etemet pa ude te umbea of te E

Paso Assocato of Budes.

ivestmets

irAs 401K

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Call (915) 542-0900for more information today.

Prior to selecting investment options for your plan you should consider the investment objectives, risks, fees and expenses carefully. For this and other important information, you obtainprospectuses for mutual funds, any applicable annuity contract and the annuity's underlying funds, and/or additional disclosure documents from the appropriate retirement plan representative. Read

them carefully.There is no guarantee that participation in any retirement plan will result in a profit or that your account will outperform a self- managed portfolio. Please consult with your financialplanner, attorney and/or tax adviser as needed.


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Homebuilders Show HousingRecovery Hasn't Crumbled Yet

Reach Abram Brown \forbes.com.

The foundation for the housingrecovery hasnt been shaken by the

threat of rising rates.The proof? That two of the nations

largest homebuilders put up better-than-expected quarterly figures in aperiod when economists worriedinterest-rate concerns would sap thehousing recoverys strength.

Firstly, Lennar the largest U.S.homebuilder by market cap, says itsprofit rose to $120.7 million, 54 centsa share, from $87.1 million, 40 centsa share, a year earlier. Analystspredicted Lennar would earn 45 centsa share. Meanwhile, revenue jumped45% to $1.6 billion, matching WallStreet predictions.

And KB Home, one of the smallerhomebuilders concentrated mostly onthe West Coast, reported a surge inprofit: $27.3 million, 30 cents a share,from $3.3 million, 4 cents a share. Ittoo beat Wall Streets estimates,which called for 22 cents a share inearnings. Revenue shot up 29% to$549 million.

KB Home CEO Jeffrey Mezgerdescribed the housing recoverysfundamentals as firmly in place,supported by low inventory levels, animproving economy and positive

demographic trends. Even ifmortgage costs do rise, Mezger says,the result would only be temporary.

Similarly, Lennar CEO Stuart Milleradmitted his company might seebumps along the road that mayimpact the short-term pace of therecovery, but he sees a long-termoutlook that remains extremelybright.

Another welcome sign was theincrease in home prices reported bythe two homebuilders. KB Home saidoverall selling price rose 22% to$299,100, and it delivered 6% morehomes. At Lennar, selling price rose33% to $291,000, and homesdelivered increased 37%.

In addition to KB Home and Lennar,

other major U.S. homebuildersinclude D.R. Horton, the secondlargest by market cap, NVR Inc., andStandard Pacific.

The increase in housing prices andsalesstrong signals that the recoverycontinues apacewas also reflectedthis morning in new economic data.According to the S&P/Case-Shillercomposite index, home salesincreased 0.6% in July, and pricesrose 12.4%. The Case-Shiller surveyshousing results in 20 metropolitanareas.


13/16

Membership News

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14/16

Hi everyone, just want to write aquick note about the up and comingevents of the associates council. If you

have not done so please enter yourteam in the Halloween Costumebowling outing. There will be prizes for

all kinds of crazy things especially the

best costume. We are in need of lanesponsors and give always so if you canfind it in your heart or budget to give us

a hand please contact Margret.We still have a few Sponsorships forthe El Paso Desert Open Pro Am

and are in need of items for the GoodieBags. For information call Margret. Thetournament (teams)is SOLD OUT. The

date of the tournament is November13th play starts at 9:00 am. All Playersmust have a USGA handicap (Sun

Country card in this area)Happy Halloween to everyone. See

you at the Fall Home Show and the

Bowling Tournament.


Sam ShallenbergerWestern Wholesale Supply

Associates Council

Call 778-5387

for more information today.

OCTOBER 29HALLOWEEN BOOWLING12:00 NOON BOWL EL PASO call 778-5387 for info,


15/16

I execuTive oFFicerSednd Dna Psdnt

Accent Homes

Fank Ts v Psdnt

GMF Custom Homes

edga mntl Stay/Tas

Palo Verde Homes

Sa Shallnbg Assats cha

Western Wholesale

Fank Ays- idat Past Psdnt

Cisco Homesray Adat et v Psdnt

El Paso Association of Builders

I couNciL/commiTTeecHAirSAssats cnl

Sam Shallenberger

Bld PAc

Randy Bowling

Dst Gn Bldng cnl

Javier Ruiz

Land us cnl

Sal Masoud

Yng Dsgn Awad

John Chaney

rdls cnl

Rudy Guel

mbshp rtntn

Mike Santamaria, Greg Bowling

Fnan ctt

Edgar Montiel

Wns cnl

Lorraine Huit

I ADviSorYToTHeBoArDJ. Crawford Kerr, Attorney, Firth, Johnston

& Martinez

I BoArDoFDirecTorSJuanita Garcia, Icon Custom Builders

Samira Gonzalez, Edwards Homes

Walter Lujan, Dawco Construction

Carlos Villalobos, Pointe HomesDon 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

2012 Bld mb of Th Ya

Frank Arroyos

Cisco Homes

2012 Pat c Awad

Mike Santamaria

Mountain Vista Homes

2012 Assat of Th Ya

Sam Shallenberger

Western Wholesale Supply

Jhn Shatzan Awad

Hunt Companies

Hnay Lf mbs

Rudy Guel

Brad Roe

Cliff Anthes

Wayne Grinnell

Chester Lovelady

Don Henderson

Anna Gil

Past Psdnts

cttd t S

ePAB mssn Statnt:

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 Builders 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

6046 Surety Dr. El Paso, TX 79905

915-778-5387 Fax: 915-772-3038

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

ITABSTATe DirecTorSDoug Borrett, Karam Co., Life Director

Randy Bowling, Tropicana Homes

INATioNAL DirecTorSBobby Bowling IV.

Demetrio Jimenez

NATioNAL ASSociATioN oF

Home BuiLDerS(800) 368-5242

TexAS ASSociATioN oF

BuiLDerS

(800)252-3625

www.elpasobuilders.com

www.epbuilders.org

Builders utlook


16/16

builders outlook 2013.09

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