Editor’s note: The home construction

industry has been suffering a serious

problem with construction loan financing

because of mixed signals from Federal

Regulators. On the one hand local banks

have ample supply of money to loan but

regulators have been refusing to allow them

to loan above a set quota in order to

“maintain a preferred portfolio ratio”.

Housing is a key factor in getting the

recession fixed according to industry and

financial professionals, yet the lack of AD &

C credit has stifled growth and the economy.

On August 10 the El Paso Association of

Builders will host a general meeting with

Larry Patton, President and CEO of Bank of

the West and a member of the Dallas Federal

Reserve as the speaker. Mr. Patton will

provide insight into this topic and more

during the luncheon at the El Paso Club. For

information on that event contact the EPAB

at 915-778-5387.

The National Association of HomeBuilders (NAHB) applauded Rep. GaryMiller (R-Calif.), Rep. Brad Miller (D-N.C.)and 29 other original cosponsors forintroducing bipartisan legislation aimed atrestoring the flow of acquisition,development and construction (AD&C)credit to the housing sector to help spur jobgrowth, support a recovery in the housingmarket and keep the economy movingforward.

"We commend Reps. Gary Miller andBrad Miller for championing a legislativesolution aimed at ending the freeze inhousing production credit that has forcedcountless home building firms across thenation to shutter their doors, resulting in

grave repercussions for job growth and theoverall economy," said NAHB ChairmanBob Nielsen, a home builder from Reno,Nev.

The credit crunch has taken an enormoustoll on the nation's economy, with job lossesfelt most acutely in the housing sector, wheremore than 1.4 million construction workershave been idled since 2006. Factoring in theeffect of the housing plunge on industriesthat provide materials and services to homebuilders, the total impact of the housingslump has been the loss of more than threemillion jobs and $145 billion in wages in allhousing-related industries.

H.R. 1755, the Home ConstructionLending Regulatory Improvement Act of2011, would address specific regulatoryobstacles to the credit needs of the nation'shome builders.

In a letter to fellow lawmakers seekingsupport for their bill, Reps. Gary Miller andBrad Miller said that "one of the majorreasons for this lack of credit is the overlyrestrictive actions by banking regulatorswhich have hindered federal and statechartered banks and thrifts' ability to makeand maintain loans to qualified small homebuilders that have viable projects."

To rectify this situation, the legislationwould grant authority and guidance tofederal and state banking regulators to ensurethat financial institutions that providefinancing to America's home builders arepermitted to make loans, restore liquidityand provide stable financing to theresidential housing sector.

In other news Reuters correspondentCorbett B. Daly reports that a bill to create a

new market for financing mortgages wouldhelp wean the $10.6 trillion U.S. mortgagemarket off government support advanced inthe House of Representatives in early May.

The House Financial ServicesSubcommittee on Capital Markets andGovernment Sponsored Enterprisesapproved the legislation on a voice vote.

The bill, which the White House supports,would have to be approved by the fullcommittee, the full House and the Senatebefore being sent to President Barack Obamafor his signature into law. The bill aims toestablish a market for covered bonds, whichare securities issued by banks and backed bypools of loans.

The loans underlying the covered bondswould remain on the issuer's balance sheet.That is different from the current U.S.mortgage system, in which lenders sell manyof the loans they make to government-sponsored Fannie Mae (FNMA.OB) andFreddie Mac (FMCC.OB), which thenrepackage them as securities for investors.

The government seized Fannie Mae andFreddie Mac in 2008 as losses on the loansthey held spiraled.

The government, through Fannie Mae,Freddie Mac and the Federal HousingAdministration, now backs almost nine in 10new mortgages.

In Europe, covered bonds have long beenin use. But they have failed to catch on in theUnited States.

In a covered bond system, banks canborrow against the value of the underlyingmortgages to obtain fresh capital to extendfurther loans. The bond investors have theright to those underlying assets in the case ofa bank default.

The Federal Deposit InsuranceCorporation has warned that a covered bondsystem could put its bank deposit insurancefund at increased risk for losses because theinvestors would have seniority over theagency in the event of default. (For Reuters,Corbett B. Daly)

Issue 5 2011 Building El Paso’s tomorrow today

Builders OutlookP

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NAHB supports legislation addressing

housing lending crisis

The El Paso Association of Builders isholding their June 10 meeting in Las Vegas,NV. and cordially invites all memebrs tojoin in on a fun filled weekend.

“It’s designed as a get away with a mix ofbusiness as we come together for some goodtimes away from the daily routine of runninga business. We are using Sun Travel to bookour trip which includes flying out onSouthwest and then staying at the fabulousParis Hotel, deep in the heart of the Vegasstrip! The Paris is our headquarters butthere’s a great selection from the Wynn to

Bellagio waiting for you! Just let Sun Travelknow your preference,” said Executive VicePresident Ray Adauto

There’s a lot to do in Vegas and it wasannounced last week that Paul McCartney isin concert on Friday June 10 at the MGMarena. Now that’s going to bring a lot offolks into town for sure. If you’re not aMcCartney fan, then maybe one of thedozens of regular shows like the Jerseyboys, Elvis, or Cirque du Soleil is more yourcup of tea. Great golf, and great dining,exceptional gambling. Our meeting is

scheduled for Saturday, June 11 at the Paris,place to be determined. We’ll have fun andsome adventure but most of all we want youto be a part of this inaugural trip.

With your help it could become an annualevent!

If you’re interested in finding out morecontact Isabelle Caballero at Sun Travel,747-3055. We’ll see you in Vegas June

10th!

EPAB meetingset for Las VegasWho: El Paso Association of

BuildersWhat: General Membership MeetingWhere: Las Vegas, NVWhen: June 10-12, 2011Info: 778-5387

“One of the major reasons forthis lack of credit is the overlyrestrictive actions by bankingregulators which have hinderedfederal and state chartered banksand thrifts' ability to make andmaintain loans to qualified smallhome builders that have viableprojects."

Rep. Gary Miller

(R-Calif.)Brad Miller

(D-N.C.)

Builders Outlook2 MAY 2011

Springtime is here and for those of you

who missed it our annual spring golf

tournament was Tuesday April 10th. I’d like

to thank our golf committee of John Chaney,

David Bogas, Eric Lowenberg and Sam

Shallenberger, and staff Ray Adauto, Angie

De Luna and Margaret Adauto for putting on

another top notch golf tournament again this

year. I’d also like to especially thank our VIP

Sponsors: All Precision Sheetmetal Works,

Goff’s Appliance and TV, Interceramic Tile

and Stone Gallery, and Tropicana Homes.

Lastly I’d like to thank all those who

volunteered to help out and participated in the

tournament. Together we met our goal for

our Association budget. While fund raisers

are not the reason for our existence they sure

do help make it easier to pay the bills so we

can focus on the issues that affect our

industry.

Speaking of issues that affect our industry,

in the past month our City Council tried to

implement a few so called “smart growth”

changes that would have devastating impact

on the future of home building in the City of

El Paso. The particular items of concern was

a front build-to line that was to be mandated

on every subdivision plat, and a requirement

for the garage to not be further forward than

the front door of the house. These changes

would have essentially made millions of

dollars worth of floor plans owned by every

builder in El Paso obsolete. It also would

have made it impossible to build on cull de

sac lots, and would have severely limited the

building envelope on which a house can be

placed on smaller more affordable lots.

Luckily for us our Association was there.

With the help of the Greater El Paso Chamber

of Commerce we were able to bring these

issues to light for City Council and City staff,

and fortunately we were able to get these

items removed. Myself, Ray Adauto, and

numerous others from our association banded

together on these issues. This was a perfect

example of the meaning of the EPAB and

what we can accomplish when we work

together. To list all the names of those who

helped on this would take up too much space

so I’d just like to send a debt of gratitude on

behalf of our entire industry to all of you who

chipped in on this effort. And I’d especially

like to acknowledge our Government

Relation Council – chaired by Edmundo

Dena, and our Land Use Council – chaired by

Linda Troncoso and Sal Masoud.

Because of proposals like the one

mentioned above, I’d like to remind everyone

how important it is to vote in the upcoming

City Council elections. Early voting is May

2nd-10th and Election Day is May 14th. I’d

like to encourage everyone in our industry to

vote, but most importantly I want to

encourage everyone to listen to what the

candidates are saying and get out and vote for

candidates who support our industry.

Lastly our Associates Council is setting up

a trip to Las Vegas June 10-12! Don’t miss

this opportunity to join us in Vegas for the

first general Vegas meeting at the fabulous

Paris Hotel on the strip. Sam and Ray have

been working hard to make sure we all have

a good time getting away from the daily

drudge and enjoying great food, fun, and

shows. Our travel agency is Sun Travel and

you can book your trip through them by

calling Isabelle at 915-747-3055 or Kathleen

at 915-731-3222. Tell the ladies at Sun Travel

you are looking to book the Builders

Association trip. I look forward to seeing you

there. Until next month have a great May.

Greg

Bowling

President,

El Paso Association

of Builders

President’s Message

Builders Outlook3

Jaime’s Courier Service, Inc.

915-549-4533 or 915-478-2404Bonded, insured for your peace of mind.

El Paso Disposal

772-7495

Early voting is May 2nd-10th and Election Day is May 14th. I’d like to

encourage everyone in our industry to vote, but most importantly I want to

encourage everyone to listen to what the candidates are saying and get out and

vote for candidates who support our industry

Nothing is as important to our industry

this month than getting out the vote for

city council, school district or bond

issues. It is your responsibility to vote

and to ensure that the vote is for

candidates that understand your industry

and will work with us. Nothing is as

damaging as having a city council who

constantly fights growth, implements

narrow sighted codes, or damages small

business. We have had too many years of

exactly that and it’s time for a change.

For sure we will have at least two

absolutely new city councilors on board

in June, and there’s a potential that one

more may come from the field. But

nothing is certain because sometimes we

seem to favor a candidate based upon

whether or not they invite us to a cocktail

party rather than to the table. Your vote

is crucial to ensuring that homebuilding,

and in turn the vendors, are working in El

Paso. Go vote. Get your employees and

family to vote. Do it for yourself, do it

for your industry. It’s important.

The news of the killing of Bin Laden

rocked the world on Sunday night May 1.

It was news that came after nearly 10

years from the WTC towers destruction

and the murder of thousands. It came

after nearly 12 years after the USS Cole

was blown up and dozens of sailors were

lost. It came after a world campaign

against this snake and his evil doers that

has cost trillions of dollars and tens of

thousands of lives both in the military

and civilian camps. One individual

represented evil to this generation much

like Hitler did to my parent’s generation.

No one can fully understand or

comprehend the vile that such a serpent

dispensed, all in a demonic call for holy

war against the United States. By the

time you read this perhaps more

information on the how and when will

come out about the actual details.

This much we know as of this writing:

Navy SEALS swept into a compound

inside Pakistan with a pretty good idea

that someone of high target value was

inside. The two copters went over a large

wall, one landed and the other had the

SEALS drop in on a high speed drop

line. All were met with gunfire and in the

ensuing moments one of the choppers

malfunctioned and crashed inside the

compound.

Apparently there were no casualties on

the SEALS side while Bin Laden was

killed by a bullet to the head while

shielding himself with a woman. Bin

Laden’s body was taken on board the

remaining chopper and all the SEALS

boarded and extricated themselves out of

the compound to a safe landing area,

where one must assume other aircraft

came in and safely moved the combined

force and the body to awaiting ships.

The firefight we have been told lasted 40

minutes. The planning was done over

three days after nearly four years of

intelligence gathering. Our hearts and

prayers go out to the intelligence

community and the entire military for

their dedication and focus on ridding the

world of such evil. We will never know

the names of all who were involved but

we send out gratitude for what you have

done. It is without a doubt a proud day to

call ourselves American’s and a great day

to salute our heroes.

Speaking of heroes let me just say a

little something about some of our own

heroes. Ironically on the weekend that

Bin Laden is killed the EPAB

participated in a build for Homesforour

troops.org and Marine Corporal Dan

Gasca. He had lost both legs in Fallujah,

Iraq back in 2008 and even though he’s

going through rehab he still calls El Paso

home. Homesforourtroops.org organized

the effort to build a home for the Gasca

family over on the Westside of town.

Contractor Omar Veliz of Veliz

Construction is the GC and on Friday,

March 29 there was a rising of the frame

held at his new home. We had Cisco

Homes and Tropicana Homes provide

some framers who joined about a

hundred others in doing the work over

the weekend. The organization still

needs a number of items including more

workers to work on interior and roofing.

Now it can be said that there is a lot of

need in this community as there is in any

community. What’s important is that this

project is already underway and needs

help getting completed. Watching the

hundred or so volunteers help on the

project and listening to Omar Veliz give

testimony as to why he’s committed to

this effort really was heart tugging. I am

asking all of you to look at giving an

hour or two, or helping with your

expertise or with your wallet, or simply

offering prayer for our local heroes who

go out and do extraordinary things

everyday. You can log onto

homesforourtroops.org and search El

Paso for more information on the local

project. Thank you once again to Veliz

Construction, Cisco Homes and

Tropicana Homes. Way to go.

Changes in the world, our community underline theimportance of voting

Perspective

Builders Outlook4 MAY 2011

Ray Adauto,

Executive

Vice President

EPAB

Send us your comments.

E-mail to:

ray@elpasobuilders.com

4655 Cohen • El Paso, Texas • 79924 • 915-821-3550 • www.tropicanahomes.com

A tradition of Excellence for over 60 Years

With sixty years of experience and over10,000 quality homes built in El Paso,Tropicana Homes has become a namesynonymous with quality construction. Asthey continue to grow and expand,community involvement remains a toppriority. Their commitment to the industryand community has made TropicanaHomes the premier builder in El Paso.

El Paso Builder of the Year 1988, 1997, 2005

Texas Builder of the Year 2003

Texas Industry Leader 2004

Texas Developer of the Year 2009

Builders Outlook 5MAY 2011

Last month, I participated in several

ribbon cutting ceremonies at

Chihuahuita Community Center,

Casitas del Norte Apartments, and

Colonia Verde Park to celebrate the

accomplishments that the federal

Community Development Block Grant

(CDBG) Program has made for the El

Paso community.

CDBG is one of the most important

federal grant programs on which cities

like El Paso depend on, because it

provides funding that gives

communities the flexibility to allocate

resources to neighborhoods with the

greatest needs. The program is

administered by the U.S. Department of

Housing and Urban Development

(HUD). Projects funded under CDBG

include parks, street and drainage

improvements, public facilities,

housing, and essential social service

programs. Since 1975, over $347

million has been allocated to El Paso for

community projects.

This particular federal grant program

is vital to our community because we do

not have the same kind of property tax

base that other cities of our size and

larger have. Other cities like Austin,

Houston, Dallas, or San Antonio have

many corporations that pay millions in

property taxes that can be used to fund

local school districts, and community

infrastructure like parks and centers. In

El Paso, we do not have the same

number of large companies that add to

the value of our tax base, and as a result,

the burden often falls on homeowners,

and projects such as the Chihuahuita

Community Center, Casitas del Norte

Apartments, and Colonia Verde Park

often get put aside and take years to

materialize.

The Chihuahuita Community Center

is a key part of the Chihuahuita

neighborhood that gives residents a

positive place for recreational activities.

With the help of federal CDBG funds,

this center now has an expanded

meeting room for the neighborhood

with proper lighting, power and

computer outlets, new ADA compliant

restrooms and shower stalls, as well as

modern air conditioning and heating

systems.

The Casitas del Norte apartments is a

historic complex that was built in 1910.

Sadly, as a result from the flood in 2006,

this apartment complex was heavily

damaged by the flood and destroyed

many apartments. Thanks to federal

CDBG funds, 43 units at Casitas del

Norte Apartments have been renovated.

These units are available to families at

or below 60% of the area median

income for the city of the El Paso.

CDBG funds also helped restore

Colonia Verde Park by extending an

eight-foot pathway for walkers and

joggers, added picnic tables with shaded

canopies, and modified the park’s

irrigation system. These improvements

will benefit the estimated 3,700 people

that use the park’s services.

Over the last 35 years, El Paso has

received more than $347 million dollars

- an average of $10 million per year - in

CDBG funding that has been used to

fund numerous projects like these.

These are the kinds of programs that

make a real difference in our

neighborhoods that provide our kids

with a safe place to play sports, a place

to meet and to organize, and a place

residents can feel proud of calling

home.

Unfortunately, right now in Congress,

House Republicans want to balance the

federal budget on the backs of those

most in need, and are proposing to

drastically cut funding for this

important

Silvestre Reyes

US Congress

Guest Perspective

The Chihuahuita

Community Center is

a key part of the

Chihuahuita

neighborhood that

gives residents a

positive place for

recreational activities.

Celebrating newly completed projects, funding still needed

Builders Outlook6 MAY 2011

The chairman of the redistricting

committee released the proposed map of

redistricting for the state of Texas.

Although there were changes, the

boundaries for the five El Paso House

members remain relatively unchanged.

Before going further on redistricting, I

would like to commend Representative

Pickett's office for handling the

responsibility of drawing our maps. Eddie

Miranda, the Chief of Staff, did most of

the leg work tweaking maps after input

from members. It was not an easy task but

he did an excellent job of coordinating the

drawing for Representative Pickett.

With a lopsided majority, some were

fearful that the Republican majority was

going to draw maps that were

unreasonable. Had there been the

atmosphere of 2003 to 2007, the likelihood

of an unreasonable map would have been

greater. Chairman Solomons allowed the

delegations to design their boundaries.

That resulted in very few concerns.

As a matter of fact, before the map was

released, there were comments from some

of the more conservative members about

the process being too generous with

Democrats.

In the redistricting process, there

inevitably arises a situation where sitting

members are placed into the same district.

That is referred to as "pairing". There

were eight districts drawn that resulted in

pairings. Only one paired Democrats. The

other fourteen members were Republican.

The leadership put six newly elected

Republican members swept in by the

teaparty excitement into the pairing

process. Of those, only two are guaranteed

a district because the others are paired with

incumbents.

The proposed map also paired four long

time members. One pairing of members in

the panhandle won't be a contested race if

the plan remains the same. There has

already been an announcement by one of

leaving the legislature.

The other pairing of longtime members

is not one that is easily called.

The final pairing of Republicans

involves one member who switched

parties this past year. I will let you decide

who has the advantage in that race.

On Friday the fifteenth of April, the

Redistricting Committee had its first

hearing on the proposed boundaries.

There were a few members who discussed

concerns at the hearing. The members of

the southern Rio Grande area and

members in a certain Houston area

presented their concerns.

The longest testimony was given by the

Mexican American Legal Defense and

Education Fund(MALDEF). Their

concern was primarily creating more

Latino districts. The map they presented

also redrew the boundaries for the El Paso

delegation. I was not very pleased with

their El Paso County map. We have

requested information from them to

determine their reasoning. I think it is

important to address that issue because if

MALDEF succeeded in court, El Paso

County would not benefit.

The five house members of the El Paso

delegation contributed to the map

proposed by Chairman Solomons. If

MALDEF agrees to leave El Paso county

with the boundaries in that map, then there

will be no concerns if there is some

litigation against the statewide

redistricting.

Redistricting maps released, discussed

Chente Quintanilla

State Representative

Guest Perspective

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Builders Outlook 7MAY 2011

Mortgage rates at lows for yearPurchase-loan demand down 37% from a year ago

Mortgage rates dropped for the third

week in a row to their lowest point this

year on signs of economic weakness,

Freddie Mac said in releasing the

results of its latest Primary Mortgage

Market Survey.

Rates on 30-year fixed-rate

mortgages averaged 4.71 percent with

an average 0.7 point for the week

ending May 5, down from 4.78 percent

last week and 5 percent a year ago.

The 30-year fixed-rate mortgage hit

an all-time low in Freddie Mac records

dating to 1971 of 4.17 percent during

the week ending Nov. 11, 2010, and so

far this year has ranged from 4.71

percent in early January to a high of

5.05 percent in February.

Rates on 15-year fixed-rate

mortgages averaged 3.89 percent with

an average 0.7 point, down from 3.97

percent last week and 4.36 percent a

year ago. That's a new low for 2011,

but well above the all-time low in

records dating back to 1991 of 3.57

percent, set in November.

Mortgage rates dropped for the third

week in a row to their lowest point this

year on signs of economic weakness,

Freddie Mac said in releasing the

results of its latest Primary Mortgage

Market Survey.

Rates on 30-year fixed-rate

mortgages averaged 4.71 percent with

an average 0.7 point for the week

ending May 5, down from 4.78 percent

last week and 5 percent a year ago.

The 30-year fixed-rate mortgage hit

an all-time low in Freddie Mac records

dating to 1971 of 4.17 percent during

the week ending Nov. 11, 2010, and so

far this year has ranged from 4.71

percent in early January to a high of

5.05 percent in February.

Rates on 15-year fixed-rate

mortgages averaged 3.89 percent with

an average 0.7 point, down from 3.97

percent last week and 4.36 percent a

year ago. That's a new low for 2011,

but well above the all-time low in

records dating back to 1991 of 3.57

percent, set in November.

Rates on 5-year Treasury-indexed

hybrid adjustable-rate mortgage

(ARM) loans averaged 3.47 percent

with an average 0.6 point, down from

3.51 percent last week and 3.97

percent a year ago. The 5-year ARM

hit a low in records dating to 2005 of

3.25 percent in November.

Rates on 1-year Treasury-indexed

ARM averaged 3.14 percent with an

average 0.5 point, down from 3.15

percent last week and 4.07 percent a

year ago.

Looking back a week, a separate

survey by the Mortgage Bankers

Association showed demand for

purchase loans remained well below

last year's levels.

The MBA's Weekly Mortgage

Applications Survey showed demand

for purchase loans was up a

seasonally adjusted 0.3 percent during

the week ending April 29 compared to

a week ago, and down 36.9 percent

from the same time a year ago.

Requests for refinancing accounted for

62.7 percent of all applications.

In an April 14 forecast, MBA

economists said they expect rates on

30-year fixed-rate loans will climb to an

average of 5.6 percent during the final

three months of the year, and average

6 percent in the final quarter of 2012.

EPAB ON THE SCENE

MAY 2011

Senercon

Meeting

Senercon and Border Solar held a meeting at

the EPAB to present the latest information on the

new rules regarding Energy Star and the pro-

grams related to it. In the two hour presentation

Senercon President Javier Ruiz gave an update

on the recent changes and those proposed by the

EPA and the Energy Department for recognition

as and Energy Star builder or supplier. From the

discussions came a myriad of questions on

whether or not the current applications for

Energy Star status will be enough to satisfy the

future requirements. The answers were that the

changes made and those proposed will make it

much harder to qualify a home for Energy Star

status, and that along with the changes come

increased costs. Border Solar is the member

who installed the ten solar panels at the El Paso

Association of Builders offices, making the

EPAB the first home builders association in the

country to utilize the power of the sun to supple-

ment electric consumption.

find us on facebook:elpasobuilders

BUILD abetter socialnetwork!

THANK YOU TO OUR

2011 Golf Sponsors

The annual El Paso Association of Builders golf tournament was held

at Painted Dunes Desert Golf Course in April. Twenty eight teams

competed for bragging rites on the tournament. The event was coordi-

nated by the golf Committee headed up by David Bogas, Sam

Shallenberger, Eric Lowenberg, Ray Adauto and spearheaded by John

Chaney. The wind died down on the day of play to present the golfers

and volunteers some excellent weather. Traditionally the EPAB tour-

nament signifies the start of Spring for the Association and a season of

renewal. This year the great folks at Painted Dunes, including

Anthony Bellows and Mark Gonzalez, gave the golfers a challenging

course in pretty good shape. John Chaney was really excited about the

turnout and grateful for all the volunteers. “This is one of the most tra-

ditional tournaments in the area and the benefits it gives the EPAB and

Young Designer Awards goes on for the entire year,” Chaney said.

“I’d like to thank all the folks who came out to support the event and

provide us with a fun time once again,” he concluded. Greg Bowling,

President of EPAB was eaqually grateful. “We turn out to this event

every year, rain or shine, good times and bad, but this year it was extra

special to see as many of our members and their guests come out,” he

said. “I’d like to especially thank All Precision Sheet Metal,

Interceramic, Goff’s and Tropicana Homes for their sponsorship,

along with everyone else who bought carts, signs and hole sponsor-

ships. This is a sign of commitment to the association and our

Executive Board thanks you for that, “ Bowling continued.

First place went to Aztec Construction’s team of Spencer, Forcada,

Mora, Medrano, Jurado and Elgua. Second Place went to Tropicana

Homes headed by Greg Bowling and third went to Texas Gas team

with Captain John Reich.

Golf Tournament

News from the

Texas

Real Estate

Center

recenter.tamu.edu

Builders Outlook10MAY 2011

Texas

Outperforms

Nation in Job

GrowthBy Bryan Pope, Associate Editor,

Real Estate Center

COLLEGE STATION, Tex. (RealEstate Center) — When it came tocreating jobs, Texas outperformedthe rest of the country from February2010 to February 2011.

According to the latest MonthlyReview of the Texas Economypublished by the Real Estate Centerat Texas A&M University, Texasgained 230,000 jobs during those 12months. That’s an annual growthrate of 2.3 percent. Over the sameperiod, U.S. nonfarm employmentrose 1 percent.

The state’s private sector postedan annual employment growth rateof 2.5 percent compared with 1.5percent for the U.S. private sector.

The state’s seasonally adjustedunemployment rate was 8.2 percentin February 2011, unchanged from ayear earlier. Meanwhile, the nation’srate decreased from 9.7 to 8.9percent.

All Texas industries exceptfinancial activities and informationindustries had more jobs, and allTexas metro areas had more jobs.Petroplexes Odessa and Midlandranked first and second,respectively, in job creation followedby Longview and Dallas-Plano-Irving.

The state’s actual unemploymentrate was 8.2 percent. Midland hadthe lowest unemployment ratefollowed by Amarillo, Lubbock,College Station-Bryan and SanAngelo.

Despite job growth, existing Texassingle-family home sales inFebruary were down 10 percentfrom a year ago.

Just over 12,000 homes were soldthis past February according to thelatest Multiple Listing Services(MLS) data compiled by the Center.

The median home price was up 3percent from the previous year, at$145,800. There was a 7.2-monthinventory.

For more on the Texas economy,read the Center’s Monthly Review ofthe Texas Economy. It’s online athttp://recenter.tamu.edu/econ/. TheCenter’s website also includes thelatest housing data from 47 TexasMLS areas. It’s athttp://recenter.tamu.edu/data/hs/.

Weak Home Sales

Numbers Don’t Tell

Whole Story,

By Bryan Pope, Associate Editor, Real Estate

Center

COLLEGE STATION, Tex. (RealEstate Center) — Home salesstatistics are likely to paint a pictureof a weakening market through theend of 2010 and the first half of 2011.While it’s tempting to attribute thebleak numbers to a deterioratinghousing market, an economist withthe Real Estate Center at Texas A&MUniversity said that doesn’t tell thewhole story.

“The year-over-year decline inexisting home sales will be the resultof comparing months when there wasno tax credit with those from a yearearlier, when the tax credit wasartificially increasing sales,” said Dr.Mark Dotzour, the Center’s chiefeconomist.

The $8,000 tax credit for first-timehomebuyers went into effect inJanuary 2009 and was planned toexpire in November 2009. Homesales gradually started to increaseafter the tax credit was announced,after bottoming out in January at anannual rate just above 4.5 millionsales.

Existing home sales graduallyincreased in 2009 as buyers and realestate agents became more familiarwith the program. Sales topped anannual rate of five million in July 2009for the first time since September2008.

As the tax credit deadlineapproached, home sales spiked inSeptember, October and November2009. November 2009 was the peakat an annual rate of almost 6.5million.

The tax credit was extended late in2009 to include sales with contractswritten until April 30, 2010, andclosed by June 30 (extended toSeptember 30). Initial homebuyerresponse to this extension was tepid,but sales picked up substantially in

March, April and May 2010, whensales were up 18 percent, 28 percentand 18 percent, respectively, over thesame months in 2009.

Then the process reversed itself.Pending home sales fell dramaticallyin May 2010, the month after the taxcredits expired. This was followed bya significant drop in home sales inJune and July. In Texas, July 2010sales were down approximately 25percent from July 2009.

Dotzour said August figures maynot be much better since manybuyers purchased homes before thetax incentive expired.

“When you ‘bring forward’ salesthrough tax incentives, sales will belower after the tax credit ends,” hesaid.

Unless Congress creates a new taxcredit this fall, Dotzour said monthlysales for 2010 will likely exhibitsignificant variance from 2009, and atrue reading of housing marketconditions may not be possible untilJune or July 2011.

www.swher.com

5400 Suncrest Dr. C-6 El Paso, Tx. 79912

Ph. (915) 613-4168

Fx. (915-833-6437

SENERCONSouthwest Energy Conservation, LLC

www.energystarelpaso.com

Change the World...

One Home at a Time...

7365 Remcon Circle El Paso, TX 79912

Builders Outlook MAY 2011 11

Your EPAB Membership can result in

BIG savings at LOWE’SMembers of the El Paso

Association of Buildersenjoy many exclusivediscounts from some of thefinest merchants in thecountry.

For Example:

Members may now receive a 2%discount on purchases using theirLowe’s Accounts Receivable, plusget free delivery on purchases of$500 or more. To be eligible for the discount,members must register their NAHBmembership on LowesforPros.comby November 1, 2011, and make apurchase with their Lowe’sAccounts Receivable by December7, 2011.

For information go to:

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call 778-5387

Showroom: 2131 Missouri

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Thomas R. Brown, Owner

Builders Outlook12MAY 2011

YouR

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� executive officers

Greg bowling, President

Tropicana Homes

del Huit, vice President

Cardel Design Group

frank arroyos, secretary/treasurer

Cisco Homes

sam shallenberger, associates council

Wholesale Supply

Kelly sorenson, immediate Past President

Vision Consultants

ray adauto, executive vice President

El Paso Association of Builders

� couNcil/committee cHairs

Affordable Builders Council Bobby Bowling IV

Associates Council Sam Shallenberger

Assoc. Co-Chair Lance Van Demon

Build PAC El Paso Randy Bowling

Desert Green Building Council Javier Ruiz

Industry Promotions Kelly Sorenson

Land Use Council Linda Troncoso

Sal Masoud

Adams Pro AM Committee David Bogas

Young Designer Award John Chaney

Code Committee Kelly O’Leary

Home Show Sam Shallenberger

Remodelors Rudy Guel

Membership Drive Mike Santamaria

Finance Committee Kathy Carillo

Education Committee Frank Spencer

� advisorY to tHe board

J. Crawford Kerr, Attorney, Firth, Johnson

& Martinez

� board of directors

Danny Andrus, Trinity Homes

John Arranda, Southwest Securities Bank, FSB

Joe Bernal, Joe Bernal Insurance

David Bogas, EPT Communities

Doug Borrett, Karam Co.Edmundo Dena, Accent Homes

Ted Escobedo, Snappy Publishing

Art Garcia, El Paso Door

Juanita Garcia, ICON Custom Home Builder,LLC

Lorraine Huit, Cardel Design Group

Walter Lujan, Dawco Home Builders

Bruce Meyer, JDW Insurance

Robert Najera, Roberts Construction

Kathy Parry, Hunt Communities

Bob Paschich, Oeste Homes

Kathy Rose, Builders Source

Regina Sanchez, Bank of Texas

Sam Shallenberger, Western Wholesale

Frank Torres, GMF Homes

Paul Zacour, Zacour & Associates

� tab state directors

Doug Borrett, Karam Co., Life Director

Randy Bowling, Tropicana Homes

� NatioNal directors

Bobby Bowling IV.

Demetrio Jimenez

2010 builder member of the Year

Mike Santamaria

Mountain Vista Builders

2010 Pat cox award

Randy Bowling

Tropicana Homes

2010 associate of the Year

Javier Ruiz

Border Solar/Senercon

John schatzman award

Lorraine Huit

Cardel Design Group

Honorary life members

Brad Roe

Cliff Anthes

Wayne Grinnell

Chester Lovelady

Don Henderson

Anna Gil

Past Presidents

committed to serve

ePab mission statement:

The El Paso Association of Builders is a federat-

ed 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.

© 2011 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

6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038

Mark Dyer

Mike Santamaria

John Cullers

Randy Bowling

Doug Schwartz

Del Huit

Herschel Stringfield

Robert Baeza

Bobby Bowling, IV

Rudy Guel

Anna Gill

Bradley Roe

Bob Bowling, III

EH Baeza

NatioNal associatioN of

Home builders

(800) 368-5242

texas associatioN of

builders

(800)252-3625

www.elpasobuilders.com

May 11

Board Meeting

3:30 pm

EPAB Office

May 18

Education

How to read

Financials

1:30-3:30 EPAB

Office

$25.00

May 25

Land Use meeting

12 Noon

EPAB office

May 17 – 20

NAHB Spring

Board Meetings

Washington, DC

June 11

General meeting

Las Vegas,

Nevada

June 23-25

TAB Board

meetings

Houston, TX

RENEWALS NEW MEMBERS

SODA SPONSOR

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Bella Homes

Caldwell Electrical Contractors

Dawco Home Builders

El Paso Disposal

El Paso Winnelson

Gardner Turfgrass, Inc.

Hardware Specialties

Land-Mark Professional

Surveying, Inc.

Manantial Homes

Remcon Self Storage

Sherwin Williams Paint

Snappy Publishing

Western Wholesale

Window World

Zia Homes

Builders Outlook 13MAY 2011

UPCOMING EVENTS

Thanks to our

MAY SODA 

SPONSOR:

Bank of the West

Membership News

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D. R. Horton HomesInc.

Contact: John Svajda

1821 N. Zaragosa, Ste.

207-308

El Paso, Texas 79936

915-503-0153

Romero InsuranceContact: John Romero

1121 Larry Mahan Dr.,

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El Paso, Texas 79925

915-590-6400

Lake Section WaterCompany

Contact: Bobbie

Rosencrans-Wright

301 Paseo Real Drive

Chaparral, NM 88081

575-824-4731

Crown HeritageHomes

Contact: Lydia Mlouhi

6305 Montana

El Paso, TX 79925

915-778-3022

6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038

www.elpasobuilders.com

Associates Council

Hi everyone,

This year is really flying by, is it not? We

just got through with the Annual spring golf

tournament which was a huge success, and I

would like to thank John Chaney and the golf

committee for another outstanding job. But

most importantly, I would like to thank all the

members that supported us. I hope everyone

had a good time.

We are gaining on June 10th, the magic day

for our departure to Las Vegas for our June

General Meeting, and a weekend of fun and

relaxation from the daily grind of business. As

you may or may not know, Sun Travel has put

together a great, inexpensive trip, for us via

Southwest Airlines and accommodations at the

world famous Paris Hotel. Yes that is correct

the one with the Effile Tower in front of it. I

hope to see all of you there. We would like to

make this an annual event full of fun and, of

course, a general meeting.

Anyone for bowling? This is always a

popular event when the summer in El Paso is a

100 degrees and the beer is ice cold. Vicki

Marcusse is heading this event up. It’s a great

way to spend an afternoon with friends and

associates. The EPAB Bowl-a-Thon will be

held July 19th at Bowl El Paso. Details coming

soon.

We are in the planning stages for our EPAB

Festival to be held in the parking lot of

Compass Bank across the street from the

EPAB office. If everything goes the way we

plan, we will have Booths for any of our

members who want to show their Products or

Services, an Arts and Crafts Show, and a Car

Show. But the Big Event will be the Menudo

and Chili cook off. This will be held on a

Saturday when there is no UTEP football

game.

The next big event will be the UTEP

Tailgate Party to be held on Saturday

September 29th. It’s UTEP vs. The University

of Houston, and it’s always a blast. This year

promises to be our best ever. We are going to

have a special caterer that has been and still is

an old time El Paso institution in good eats. I

don’t want to tell you who it is right now, but

if you grew up here and ever went downtown

when you were a kid you went to this place. Of

course we will have sodas, bottled water, and a

keg or two.

Last but not least, our first University of

Texas M. D. Anderson Cancer Center Fund

Raising Event. Being held on October 8th at

Western Wholesale, this promises to be a

special evening. There will be several Doctors

attending the event who are world renown in

the area of Cancer Treatment & Research. We

will have three very special Chefs cooking in

three separate kitchens at the same time. There

will be a cocktail hour, and special wines to

enhance the cuisine. For those of you that

don’t know or remember, we have had quite a

few members that have had to fight Cancer and

are still with us today thanks to M.D. Anderson

Cancer Center.

Well, just writing this has worn me out, so if

anyone wants to help out just, give Angie a call

at the EPAB She will get you on the team.

Remember this is YOUR Association, and

YOU get out of it, what you put in to it.

See you in Las Vegas!!!!!!

Safety on the job

Builders Outlook14 MAY 2011

Industry Reports

May is National Electrical Safety Month.

It is a great time to promote a healthy

respect for electricity and increase awareness

of electrical hazards around your work place

and home. Frayed and damaged power cords

on tools are the most common issue we see

on construction jobs.

• Power cords should be inspected

regularly. Frequently, mishandling (such as

pulling a plug from a socket by jerking the

cord rather than removing the plug carefully

by hand) causes the most significant damage

to a cord over time, tearing the external

protective sheathing or detaching it from the

plug head and exposing energized wires.

• Less obvious is the threat posed by

missing ground prongs, the rounded third

prong on electrical plugs. These ground

prongs often break off from mishandling or

are removed intentionally to fit a plug into

two-prong outlets.

Regulations Related to Damaged and

Ungrounded Power Cords

• The Code of Federal Regulations (CFR

1910.303) states that electrical insulation

shall be free from recognized hazards that

cause death or serious physical harm to

employees.

• The Code of Federal Regulations (CFR

1910.334(a) (2) (ii)) requires damaged or

defective power equipment to be removed

from service until repairs are made and tests

show the equipment is safe.

• Missing ground prongs are a violation of

Occupational Safety and Health

Administration (OSHA) regulations and the

National Electric Code. As required by CFR

1910.334(a)(3)(ii), attachment plugs and

receptacles may not be connected or altered

in a manner which would prevent proper

continuity of the grounding conductor.

http://www.compliance.gov/forms-

pubs/eresources/fastfacts_damagedcords.pdf

29 CFR 1910 Subpart S - Electrical

Sam Shallenberger

Western Wholesale

Supply

Lupe AlanizA&E Environmental &

Safety Consultants

Land Use

By Linda Troncoso

The City of El Paso is currently in the

process of preparing a new Comprehensive

Plan for El Paso. The City of El Paso has also

pursued a parallel path to adopt new

amendments to the City’s park, landscaping,

sign, and parking requirements in order to

incorporate walkable community principles.

These changes have included the requirement

for lots to front parks and provide pedestrian

corridors for additional access, increases in

the requirement of parkway and on-site

landscaping for non-residential site

developments, and set maximum limits for

off-street parking requirements for site

developments. These are items that have

come forth to Council in the past month after

vetting to the commercial and residential

development community.

Members of the development community

have continued to express the need to need for

proper vetting by City staff prior to the

adoption of new ordinances and requirements.

City Council members have taken that

message to heart and given specific direction

to staff to reach out to the real estate

community in order to understand the impact

of proposed requirements to all parties. We

look forward to the continued opportunity to

participate in these processes.

New changes which impact our industry are

occurring on a regular basis. As such, we

encourage everyone to actively participate in

the standing Land Use Council meetings on

the fourth Wednesday of each month at noon

at the EPAB offices. We hope to see you on

May 25, 2011.

REALTOR/Builder

We’ve all heard about Facebook, LinkedIn,

and more. But where do you start and what do

you do?

Try something simple. Put a small 2-5

minute video together to describe how to do

small home fixes to teach the general public.

Below are some suggestions to start with:

• How to turn off your water in the case of

a leak or pipe bursting.

• What to do when you smell gas in the

home

• How to put together an automatic

sprinkler system

• What to do when you are missing power

in one part of your house

• How to switch your heater to evaporative

cooler and back

• Calling the utility companies with 811

when you are getting ready to landscape

your yards

• How to put out a grease fire in the kitchen

• How to turn on your gas fireplace

• How to let out pressure in your gas water

heater

• How to fix a leak or running toilet

These are a starting point for posting

videos. You can also put up events with your

pages for different open houses, REALTOR

parties, Grand Openings, etc. With events,

you want to create them for special occasions

and refrain from putting your daily events.

Another item to put is a photo gallery of

your model homes to allow potential clients to

view your homes. This allows a client to view

your homes with a free website. If you are not

especially internet savvy, just ask your

teenager to put your page together. They will

have it done in no time.

Facebook can be used to create interest and

value with potential clients about your homes.

It is a great avenue to advance your company

image with free home owner education. A

wonderful benefit is that if your “followers”

or “fans” like your postings they can share

them with their “friends.” Your videos and

photo albums have the potential of not only

being seen by your “fans” but also anyone

who is “friends” with your “fans.” It’s as easy

as sharing a link from a website. You can also

post the videos in Spanish to reach the other

half of our El Paso population.

LinkedIn is used for professional

networking. This is a better place to recruit

REALTORS, Subcontractors, Mortgage

Companies, etc. In LinkedIn, you can post

events that cater to the real estate community.

Good luck with your pages, postings, and

videos! I am eager to share your videos on my

work Facebook page.

May Meeting: 5/19/11 from 12-2PM at the

Greater El Paso Association of

REALTORS®.

Speaker will be Carefree Homes. Their

Education Topic will be HVAC and Building

an Energy Star Certified Home.

Fostering harmony amongst home builders,

real estate professionals, and affiliate

companies

Angela Ochoa

GEPAR

Sal Masoud

Linda Troncoso

General

Meeting

April 13 was the date and Vista Hills CC

was the location for our bi-monthly general

membership meeting. An overflow crowd

gathered to share news about the industry

and to visit with friends and competitors. A

presentation by Paul Coleman, President of

Sun Travel, on the upcoming Las Vegas trip

gave the audience a glimpse of what to

expect when one visits Sin City, Las Vegas,

Nevada. Paul gave us tips on shows and

events and how to make plans for those

extra little things you might want to do

while in Vegas. He shared some quick tips

including making sure you get your

reservation well in advance of your

intended visit. Las Vegas shows are

plentiful, but they are also very popular and

those like Cirque du Solie or Jersey Boys

sell out fast. Mr. Coleman also reminded us

to book our trip with time so that you can

take advantage of lower airfares. Recent

increases in jet fuel are making flying more

expensive and booking early is the only

way to go. The pictures on this page show

a sampling of who was at the event. We

look forward to seeing you at the next

general membership meeting in Las Vegas

on June 11. For information on that trip see

the ads in this issue.

EPAB ON THE SCENE

Join the El Paso Association ofBuilders for our General MembershipMeeting in Las Vegas, NV June 10-12,2011

Call 778-5387 for more information

Vegas Baby!

Travel Arrangements

by Sun Travel

Isabelle Caballero

747-3055