builers outlook 12:8

Editor’s Note: Thefollowing letter was sent toFrancisco Valentin Jr.,State Director USDA RuralDevelopment by DavidBallard, CEO, Partner of

the Huntington Group LLC upon theannoucement of the removal of HorizonCity and San Elizario Texas from USDARD eligibility.

As an association, we face challengesregarding affordable housing everyday.We are re-printing the letter with Mr.Ballard’s permission to help bringawareness to this issue.

Dear Mr. Valentin:

It has just recently been made awareof an announcement by USDA RuralDevelopment (RD) that certain Towns inEl Paso County are tentatively scheduledto be deleted from the list of areaseligible to receive RD loan assistance(Guarantee and Direct). Specifically thelist includes the Town of Horizon City andSan Elizario due to the 2010 Censuspopulation increases. Although theattached spreadsheet identifying theseareas indicates the data is preliminaryand subject to change we have been toldthat the cut-off date to submit remainingRD loans is September 15, 2012 and theeffective date to remove these Townsfrom the eligibility list is October 1, 2012.

It is our opinion, if this action is notreversed, RD will be dealing adevastating blow to the affordablehousing market in El Paso County. Theend result will be an increase in Coloniapopulations and the “rent to own”scenario. This will also significantlyreduced inventory of safe, sanitaryaffordable housing options for thosefamilies most in need.

The Texas Secretary of State websiteidentifies three hundred twenty six (326)Colonia’s currently active in El PasoCounty alone. According to TexasHousing.org “colonias have been definedas impoverished, unincorporated areaswith inadequate infrastructure foundlargely along the U.S. – Mexico border.Many colonias lack adequate water andsewer systems, electricity, street lights,

sidewalks, storm drainage, paved roads,and of course, decent, safe and sanitaryhousing”.

Of the three hundred twenty six (326)active El Paso County colonias, seventyseven (77) are within a five (5) mileradius of the Town of Horizon City. If theradius is increased to eight (8) miles thenumber of colonias doubles for a total ofone hundred and fifty four (154), seeattached map. Geographically all of thecolonias are east and south of the Townof Horizon City. San Elizario shares asimilar demographic. It is important tonote that eighty five (85%) percent of thefamilies living in colonias are U.S.citizens which qualify them to purchasehousing if housing options are availableat an affordable level. The average familyis five (5) to six (6) individuals.

According to HUD.org “The generallyaccepted definition of affordability is for ahousehold to pay no more than thirtypercent (30%) of its annual income onhousing.” Families who pay more thanthirty percent (30%) percent of theirincome for housing are considered costburdened and may have difficultyaffording necessities such as food,clothing, transportation and medicalcare. Texas Housing.org reports as muchas fifty one percent (51%) of poverty levelhouseholds in El Paso pay more thanhalf of their income for housing.

The affordable housing crisis in ElPaso is further exacerbated by a largeincrease in the military population whichhas created a shortage of rental propertyand significant increases in rental rates.Rick Soto, President of the El PasoApartment Association as of August 24,2012 reports occupancy rates at ninetyseven percent (97%) with rates at $1.05to $1.06 per square foot. A standard “onebedroom” apartment of six hundred fifty(650) square feet rents for between sixhundred seventy dollars ($670) and sixhundred eighty three dollars ($683) permonth. A full time wage earner wouldhave to earn at least thirteen dollars andfourteen cents ($13.14) per hour to rentthis one bedroom unit and meet the 30%of annual income criteria.

Utilizing the RD Direct program thissame low income family can purchase a

three (3) bedroom two (bath) home inHorizon City, Texas. This is a brick andsiding home with concrete drive andenclosed garage, refrigerated air, allappliances (washer, dryer, refrigerator,stove, range hood, dishwasher andgarbage disposal), paved street withengineered curb and gutter, public waterand wastewater, gas, electric, cable andminimum six thousand (6000) squarefoot lot. These homes typically includethe standard one (1) year builderwarranty and ten (10) year extendedwarranty. Note the following comparisonusing the RD Direct program versusrenting.

What the above does not include is theability to build equity that homeownershipaffords. Nor does it apply the additionalannual savings from interest and taxdeductions.

In addition to the economic gain thereare social benefits that cannot beignored. In a study completed by RichardGreen and Michelle White entitled“Measuring the Benefits of Homeowning: Effects on Children,” it wasdetermined that homeownership has asignificant effect on children’s success.The decision to stay in school by teenagestudents is higher for those raised byhome-owning parents compared to thosein renter households. Furthermore,daughters of homeowners have a muchlower incidence of teenage pregnancy. Astudy conducted by the New YorkFederal Reserve Bank also found that,though homeownership raiseseducational outcomes for children,neighborhood stability further enhancedthe positive outcome. Speakingspecifically to low income familiesHanushek, Kain, and Rivkin in theirpublished works “The Cost of SwitchingSchools,” concluded that changing

schools negatively impacts children’seducational outcomes particularly forminorities and low income families.

RD, by eliminating Horizon City andSan Elizario from its area of eligibilitypushes the requirement to constructaffordable housing into unincorporatedareas of El Paso County that simply donot and will not in the foreseeable futuresupport the necessary infrastructure toeven begin meeting the need. The cost ofextending infrastructure in these areas isexcessive and more importantlyunnecessary when resources are readilyavailable and currently in place in bothHorizon City and San Elizario. Thisaction will also have a detrimental anddirect effect on employment. Many of thecontractors currently laboring on thesehomes will have to lay off employeescreating an additional burden on analready struggling work force andeconomy.

In short, population must not be theonly deciding factor to justify such actionby RD. It is imperative that a globalapproach be taken and the availabilityand location of existing and basicinfrastructure (water and wastewater)considered. Pushing eligibility lines intooutlying areas that do not support thisbasic infrastructure does not assistfamilies or improve living conditions. Infact, it only serves to penalize thesefamilies and forces us to turn our backson those most in need.

We implore RD to reconsider thedecision to place the Town of Horizonand San Elizario on the ineligible list forthe reasons stated herein and for thesake of the families that will ultimatelysuffer the consequences of this decision.We appreciate your consideration andpray for a reversal of this decision.

Builders utlookyears

E L P A S O

BUILDERSA S S O C I A T I O N O F

B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 194 6www.elpasobuilders.com www.epbuilders.org

2012/8

Cutting RD Loan

Assistance

devastating blow to

affordable housing

in El Paso

DIGITAL EDITION

USDA RD Program 1% Direct Loan 2% Direct Loan 3% Direct LoanNew Home Price / 1100+ SF $ 96,500.00 $ 96,500.00 $ 96,500.00

Annual % Rate 1.00% 2.00% 3.00%

# of Payments / 30 year 360 360 360

Monthly Principal and Interest $ 310.38 $ 356.68 $ 406.85 Taxes / Insurance $ 210.94 $ 210.94 $ 210.94 Total Monthly Payment $ 521.32 $ 567.62 $ 617.79 Annual Income to purchase $ 20,850.00 $ 22,725.00 $ 24,725.00 Required Hourly Wage $ 10.02 $ 10.93 $ 11.89 Payment as % of income 30.00% 30.00% 30.00%

One Bedroom Apartment / 650 SF $ 670.00 $ 670.00 $ 670.00 Total Monthly Home Payment $ 521.32 $ 567.62 $ 617.79 MONTHLY SAVINGS $ 148.68 $ 102.38 $ 52.21 Min. Annual Income to "RENT" $ 27,331.00 $ 27,331.00 $ 27,331.00 Required Hourly Wage $ 13.14 $ 13.14 $ 13.14

W

In short, population must not be the only deciding

factor to justify such action by RD. It is imperative

that a global approach be taken and the availability

and location of existing and basic infrastructure

(water and wastewater) considered.

2 Builders Outlook 2012/8

Back to school is here. High school

football, the sound of bands practicing

early in the morning; and kids making

their way to school. A lot of our work

is in family neighborhoods, so please

pay attention to speed limits,

especially in school zones and help

keep our children safe.

Right around the corner is the

Sunbelt Builder Show in Austin on

September 13-15. Please be aware

that the level of the education sessions is well above average. That being

said register now to be at of these great sessions @

www.sunbeltbuildersshow.com for your free registration. See you there!

Last week the Texas Land Board voted to allow an alternative path for

TX Vet Loans. All new construction homes had to meet the stringent

Energy Star 3.0 guidelines if seeking Texas Vet Financing.

Effective July 26, 2012 any homes sold under the TX Vet program is no

longer required to be Energy Star, but instead must meet a HERS score of

75 or better on the HERS index, the lower the score the more efficient the

home is.

“Trust in the Lord with all your heart and lean not on your own

understanding; in all your ways acknowledge Him and He will make your

path straight.”

-Proverbs 3:5-6

President’s Message |

El Paso Disposal

772-7495

32012/8 Builders Outlook

Frank

Arroyos

President,

El Paso Association

of Builders

First I’d like to start by welcoming

our newest members into the fold and

to remind our supporting members

just how important new members are

to an organization. At the last meeting

we had I presented a quick overview

of who we are as far as generationally.

What I am pointing out is how we are

represented on our board by

generation, those born during a

certain period of time. I broke down

those by following traditional

generational references: Greatest:

1901-1924; Silent: 1925-1944;

Boomer: 1945-1964; X: 1965-1981; Y:

1982-1999. What I was looking for is

for a matrix on the composition of the

board in order to help us understand

who we are and if in fact we still are

relevant. Associations, just like other

organizations from Lions clubs to Bar

Associations all are feeling the

generational changes, and with that

the need to evolve or disappear.

The Texas Association of Builders

has been trying to figure itself out as

well. As we look around the state

membership some worry creeps in.

From a quick look around the meeting

TAB is not sustaining a welcome to

generational growth or diversity. That

is not the case with El Paso and here

are the numbers to prove the case:

Greatest: 1 (E.H. Baeza)

Silent: 3 (Guel, Dyer and Roe)

Boomer: 16

X: 13

Y: none.

These generational groups show

that El Paso has embraced a younger

leadership and is mentoring them for

future roles as Executive Leaders.

The importance is what drove

membership in the 50’s and 60’s

started to wane in the 70’s and 80’s.

Membership was an important step in

getting information, sharing ideas,

communicating politics and

understanding and influencing growth.

It was a man’s world where women

were delegated to serve more as

supporters but never in leadership.

Men met, made the rules, and

everyone played by them. Starting in

the 70’s those meetings started to see

more women and minority

involvement and it grew in the 80’s

and 90’s. The influence of an

association also changed as

technology became a source of

information that was once reserved to

a select few. Things were changing

and the EPAB embraced that change.

It’s no surprise that our board

leadership is nearly equal when it

comes to the Boomer and Gen X’ers.

In the coming years we’ll continue to

see more Gen X’ers and our first Gen

Y leadership coming into the fold. Our

membership now has a number of

Gen Y’ers and diversity clearly shows

continuation. Our executive is led by

three Gen X’ers (Frank Arroyos,

Edmundo Dena, and Greg Bowling),

while we have three Boomers as well

(Sam Shallenberger, Frank Torres and

me).

How we communicate to the

membership, what we communicate

to the membership, and when we

communicate are all evolving. We still

use regular mail to send billing but

that’s changing. We have a fax

machine because some of our

members don’t use email. And we still

call, although texting is far more

unobtrusive. What you should take

away from my message is this: as a

business are you reaching, growing

and communicating with your staffs

and customers? Are you in a position

of growth or are you becoming

irrelevant. It may be time to evaluate

your business and implement change

before its too late.

Perspective |

Ray Adauto,

Executive

Vice President

EPAB


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Strengthening house prices inmetros across the country contributedto slightly lower housing affordability inthe second quarter, according to theNational Association of HomeBuilders/Wells Fargo HousingOpportunity Index (HOI), releasedtoday.

The latest HOI data reveal that 73.8percent of all new and existing homessold in the second quarter wereaffordable to families earning thenational median income of $65,000.This is down from a record high 77.5percent of homes that were affordableto median-income earners as of thefirst quarter, and is largely attributableto rising prices in metros across thecountry. A full 92 percent of metroscovered in the latest HOI saw theirmedian home prices rise between thefirst and second quarter.

“While interest rates and overallhousing affordability remain veryfavorable on a historic basis, the

decline in the latest HOI is a positivedevelopment because it is anothersignal that the housing recovery isstarting to take root, and it lendsneeded confidence to prospectivebuyers and sellers who have beenreluctant to move forward in thecurrent marketplace,” said NAHBChairman Barry Rutenberg, a homebuilder from Gainesville, Fla.

The most affordable major housingmarket in this year’s second quarterwas Youngstown-Warren-Boardman,Ohio-Pa., where 93.4 percent ofhomes sold during the period wereaffordable to households earning thearea’s median family income of$55,700.

Also ranking among the mostaffordable major housing markets inrespective order were Dayton, Ohio;Buffalo-Niagara Falls, N.Y.;Indianapolis-Carmel, Ind.; andModesto, Calif.

Among smaller housing markets,Fairbanks, Alaska topped theaffordability chart with 98.7 percent ofhomes sold during the second quarterbeing affordable to families earning thearea’s median income of $92,900.Other smaller housing markets at thetop of the index include Mansfield andSpringfield, Ohio; Carson City, Nev.;and Kokomo, Ind.

Meanwhile, New York- White Plains-Wayne, N.Y.-N.J. retained the title ofthe least affordable major housingmarket in the country for a 17thconsecutive quarter, with just 29.4

percent of homes sold there beingaffordable to families earning thearea’s median income of $68,300 as ofthe second quarter.

Other major metros at the bottom ofthe affordability chart included SanFrancisco-San Mateo-Redwood City,Calif.; Bridgeport-Stamford-Norwalk,Conn.; Santa Ana-Anaheim-Irvine,Calif.; and Los Angeles-Long Beach-Glendale, Calif.; in that order.

Ocean City, N.J., retained its title asthe least affordable smaller housingmarket in the second quarter, with just43.8 percent of homes sold in thesecond quarter affordable to familiesearning the median income of$71,100. Other small metros at thebottom of the list included San LuisObispo-Paso Robles, Calif.; SantaCruz-Watsonville, Calif.; Dover, Del.;and Santa Barbara-Santa Maria-Goleta, Calif., respectively.

Sales of newly built, single-familyhomes rose 3.6 percent to aseasonally adjusted annual rate of372,000 units in July from an upwardlyrevised pace in the previous month,according to figures released by HUDand the U.S. Census Bureau today.

“Sales of new homes in Julyreturned to the same solid pace theyset in May, which was the fastest salesrate we’d seen in more than two

years,” said Barry Rutenberg,chairman of the National Associationof Home Builders (NAHB) and a homebuilder from Gainesville, Fla. “This isfurther evidence that consumers arebecoming more confident in localhousing markets as they look to takeadvantage of today’s very favorableprices and interest rates.”

Noting that the three-month movingaverage of new-home sales has beenedging up consistently since lastSeptember, NAHB Chief EconomistDavid Crowe said, “Today’s goodreport is the latest indicator of agradual, upward trend that we expectto continue through the remainder ofthis year.” However, he added that“The fact that the inventory of newhomes for sale reached an all-time lowin July is a worrisome signal thatongoing, unnecessarily tight creditconditions are keeping builders frombeing able to replenish supplies asconsumer demand improves.”

Regionally, the Northeast posted thebiggest gain in new-home sales with a76.5 percent increase in July from anabnormal low in the previous month.The Midwest posted a 7.7 percent gainwhile the South and West registeredmarginal declines of 1.6 percent and0.9 percent, respectively.

After trending downward for the pastsix years, the inventory of new homesfor sale hit a record low of 142,000units in July. This is a 4.6-monthsupply at the current sales pace.

Rising Home PricesPush AffordabilityLower In SecondQuarter

New-Home SalesRise 3.6 Percent


GOP Platform Drafting Committee ShowsSupport for the MID and Middle-ClassTaxpayers

The National Association of Home Builders (NAHB) today applauded the GOPPlatform Drafting Committee for recognizing the importance of the mortgageinterest deduction within its proposed platform.

“We are very pleased that the committee has recognized the crucial importanceof the mortgage interest deduction,” said NAHB Chief Executive Officer JerryHoward. “At a time when so many are struggling to recover from the recession, thisaction helps cement much-needed political support for a tax break that primarilybenefits middle-income families.”

Including the mortgage interest deduction in the draft GOP platform also makessense because of the broad support that the incentive enjoys among voters acrossthe country, added Howard. An NAHB-commissioned poll this January found that77 percent of Republicans, 71 percent of Independents and 71 percent ofDemocrats oppose eliminating this important tax break.

“Middle-class voters have seen their household wealth decline throughout therecession, and to a large extent they are the ones who will decide the outcome ofthis election,” noted Howard. “They are also the prime beneficiaries of themortgage interest deduction. With this in mind, it seems obvious that maintainingthis cornerstone of American housing policy should be among lawmakers’ primarygoals.”

Associates Council to host Tent Event at EPAB

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The association has established a

great Speed Networking event over the

last three years and many of our

Associates and Builder members relish

the ability to participate. Two years

ago Sam Shallenberger and Ray

Adauto put in motion a new concept,

one that would be larger, better, and

more fun than a regular Speed

Networking event. September 29 the

Association proudly presents “Tent

Sale, Show ‘N Shine” the first annual

tent show with cars, exhibitors, food,

and fun. Thanks in large part to David

Bingham at The Heritage Group,

owners of the Compass Bank Building

who is lending us the parking lot this

event will kick off the Fall season for

many of our members. Already there is

large excitement from those who are

working on the event. Chuck Gabriel,

Chair of the event and President of

Carpets West said “when Ray and Sam

brought this to our committee it went

from a little tent outside the association

building to a full blown party, a

Pachanga,”. Indeed the committee

rose to the occasion by laying out the

ground work for what could be a much

anticipated yearly event.

John Dorney who owns Dorney

Security and is a new member recalls

that everyone at the table got this wild

look in their eyes. “You could tell that

we were not going to do just a little

tent, or a little inside event, no sir,

these guys were looking at doing

something bigger,” he said. Ideas

flowed and the date set, a one day

show with some cool things for all

ages. “I have to keep reminding myself

and the committee that we’re doing this

to drum up some sales and leads for

our members,” Sam reminds the

Outlook. Two bands have signed up to

entertain along with a rapper and food

vendors are being invited. Our media

partner, Comp Corp. who owns KTSM

and KDBC TV has signed on as a

media sponsor. Member auto

dealerships are ready to come out. Rio

Grande Wheels Car Club, Phantom

Corvette Club, MOPAR Club, and Early

Times Car Club have all agreed to

bring their jewels to show ‘n shine.

Should be a blast. We hope you make

plans to attend. Free to the public.

Tent Sale,

Show ‘N Shine

September 29

9:00am-4:00Pm

Compass Bank Parking Lot

across from Bassett Center

Builders utlook on the scene |

The bi-annual bowling event was

held at the Fiesta Lanes on the

westside August 22. Ninety six

bowlers took part in the fun gather-

ing. The bowling event started at

noon and went on through the after-

noon as teams knocked down pins

and enjoyed refreshments.

Sponsors for this event were

Western Wholesale Supply, HUNT,

WestStar Bank, Cisco Homes and

Lawyers Title. Kathy Parry from

HUNT was able to secure some

nylon backpacks along with a clip

on pen as a giveaway for each

bowler. Prizes were handed out

during the afternoon and included

giveaways from Western

Wholesale, Ferguson, El Paso

Building Materials, WestStar Bank

and Spectrum Imaging.

Additionally Ray handed out Texas

Lotto scratch off tickets with the

hope that someone would hit a jack-

pot.

“I’d like to thank everyone who

came out to this fun event and to

those who allowed their employees

or customers to enjoy this,” said

Sam Shallenberger, Associates

Chairman. “Doing something like

this really brings our members

together for some fun, food, and

drink, but mostly they get a great

opportunity to network,” he contin-

ued. Dorney Security, one of our

newest members, was just as

thrilled to be bowling. “I have to

admit we didn’t know what to expect

but we had a really good time and

got a chance to meet some great

members,” John Dorney said. One

member, Don Rassette of Rassette

Homes brought his family out. “We

bowl in a league here at Fiesta

Lanes, and we thought it would be

fun to bring the grandkids out along

with us. This is a nice family event

and we’re looking forward to the

next one,” Don continued.

The pictures certainly tell the story

of event, with winners showing off

their prizes, and others showing off

their skills. We anticipate our next

event sometime in the winter or

early 2013.

Bowling fun at

Fiesta Lanes

View more photos on our facebook page: elpasobuildersassociation

2012/8

Housing Starts

Edge Down 1.1

Percent, Permits

Rise In July

Nationwide housing production

edged down 1.1 percent to a

seasonally adjusted annual rate of

746,000 units in July, according to

newly released figures from HUD

and the U.S. Census Bureau.

However, builders pulled more

permits for planned new-home

projects than they have in any

month since August of 2008.

“While many builders believe that

the outlook for housing is

considerably brighter than it has

been in years, we are being very

careful about keeping inventories

tight and not building ahead of

demand,” noted Barry Rutenberg,

chairman of the National

Association of Home Builders

(NAHB) and a home builder from

Gainesville, Fla. “At the same time,

builders are drawing more permits

for new construction so we can

accommodate buyers and renters

as they return to the marketplace.”

“Our latest surveys confirm

builders’ increased confidence

about future home buyer demand,

and that’s reflected in today’s permit

numbers,” agreed NAHB Chief

Economist David Crowe.

“Increasingly, housing is re-

emerging as a traditional and much-

needed source of strength in local

economies as builders are able to

put more of their crews back to

work. But two things that are slowing

this process considerably are the

challenges that builders continue to

face in accessing credit for viable

new projects and the difficulty of

obtaining accurate appraisals on

new homes.”

After four consecutive months of

gains, single-family housing starts

fell back 6.5 percent to a seasonally

adjusted annual rate of 502,000

units in July. Meanwhile, multifamily

starts posted a 12.4 percent gain to

244,000 units, their strongest pace

since February.

On a regional basis, combined

single- and multifamily starts

declined 1.3 percent in the

Northeast, 3.5 percent in the South

and 5.3 percent in the West, but

rose 17 percent in the Midwest in

July.

Issuance of new building permits,

which can be an indicator of future

building activity, rose 6.8 percent to

a seasonally adjusted annual rate of

812,000 units in July – the fastest

pace in nearly four years. Single-

family permits rose 4.5 percent to

513,000 units (their best pace since

March of 2010) while multifamily

permits rose 11.2 percent to

299,000 units.

Permit issuance rose in three out

of four regions in July, with the

Northeast registering a 12.2 percent

gain, the South a 5.8 percent gain

and the West a 14.0 percent gain.

The Midwest posted a 4.2 percent

decline.



If you don’t know by now, it may

come as a shock that our nation’s

defense is set to see across the board

spending cuts, or sequester, of 10

percent in January 2013. What might

this mean for the millions of soldiers

and their families, our nation’s security,

and the local economies and

businesses that depend on the

defense sector? So far, the

projections have indicated that it would

mean large job losses, decreased

national security and a hit to our

struggling economy. Our own Defense

Secretary, Leon Panetta, has said that

such a cut to our nation’s defense

spending ‘will do real damage to our

security, our troops and their families,

and our military’s ability to protect the

nation.’

A recent report, Defense Spending

Cuts: The Impact on Economic Growth

and Jobs, studied the combined

impact of budget caps implemented

under the Budget Control Act of 2011

and the law’s across the board cuts

under sequestration. What the report

concluded was bleak: a loss in 2014

of 1,010,000 private sector jobs,

including 130,000 manufacturing jobs,

a 1 percent decrease in GDP by 2014,

and an increase in the unemployment

rate by 0.7 percent. In the report,

Texas came in third, behind only

California and Virginia, with the largest

amount of projected job losses:

109,000. The 10 percent cuts will also

mean a weaker military: predictions

state we would have the smallest

ground force since 1940, a fleet of

fewer than 230 ships - the smallest

level since 1915 - and the smallest

tactical fighter force in the history of

the Air Force.

Simply put, these types of losses are

unacceptable. While I am a fiscal

conservative and came to Washington

to balance the budget, these types of

across the board cuts are irresponsible

and will damage an already struggling

national economy while weakening our

military’s ability to protect our country.

For my constituents who live in and

around the Del Rio, El Paso and San

Antonio areas, many will face the

consequences of these cuts in their

daily lives, particularly if they work

directly for or with the military bases.

Earlier this year, the House of

Representatives passed legislation to

replace the arbitrary, across the board

cuts with targeted spending reductions

and other common sense reforms that

still achieve the necessary savings,

but without putting national priorities –

like our nation’s defense – at risk. The

problem remains, however, because

neither the President nor Senate

Majority Leader Harry Reid have

joined with the House of

Representatives in trying to replace

the sequester and prevent its

damaging effects.

Another challenge confronting us at

the moment is the lack of clarity from

the current administration as to where

exactly the cuts will come from, should

the sequester take place without

further action. In an attempt to find

clarity for those who will be most

affected, the House passed the

Sequestration Transparency Act of

2012 to pressure the current

administration to specify how the cuts

would be implemented. While it is not

a bill to stop sequestration, it is an

important piece of legislation that

seeks to provide some clarity for the

thousands of businesses and military

personnel who will be affected if

sequestration takes place in January.

An arbitrary sequester is not the way

to balance our budget, particularly if it

means such a damaging loss of jobs

and a severely weakened military. The

House developed a plan to make

strategic cuts that preserve our

national security; it is now up to the

Senate to reach across the aisle and

ensure we do not do permanent

damage to our economy and our

armed forces.

Give your customers the ‘option of the sun’

Now more than ever,

El Paso home buyers

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Fighting Across the Board Cuts to our Military

Guest Column

Francisco CansecoTexas Congressman


‘Beto’ at EPAB Town Hall

Builders utlook on the scene |

Beto O’Rourke, the Democrat candidate

for the 16th Congressional District stopped

in to meet with the El Paso Association of

Builders on August 23. O’Rourke won a

victory over eight term incumbent Silvestre

Reyes in a hotly contested race. O’Rourke

faces Barbara Carrasco on the Republican

side during the upcoming November

elections. Mr. O’Rourke took question and

presented his thoughts on how the district

will look under his term. Members took

the opportunity to present views on

housing, finance, and the economy. Over

twenty five members attended the session.

Membership News

Thanks to our AUGUST

SODA SPONSOR:PREWIRE

OF EL PASO

SODA SPONSOR

years

E L PA S o

BUILDERSA S S o C I A T I o n o F

B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 194 6

11395 James Watt, Suite A-11 79936915-633-8002


www.elpasobuilders.com www.epbuilders.org

UPCOMING EVENTS |

RENEWALS |

For the latest updates &event information, visit:

elpasobuilders.com

Jaime’sCourier

Service,Inc.

Jaime’sCourier

Service,Inc.

915-549-4533 or

915-478-2404

Bonded, insured foryour peace of mind.

Accent Homes

Acme Brick Company

Automated Division 6 Builders, Inc.

Barron Supply

Barragan & Associates

BBvA Compass Bank

Beck & Hall, PC

BMC Select

Builders Source

Calwell Electrical Contractors, Inc.

Capital Bank, SSB

Carpets West

City Lights

Cullers & Caldwell

Custom Dream Homes

El Paso Reprographics

Karam Company

Law Offices Of James A. Martinez

Soils Mechanics

Strucsure Home Warranty

September 12-15 TABMeeting and Sunbelt

ShowAustin Texas

September 19Board Meeting

EPAB Office

12:00 Noon

September 29Big Tent Sale

Show & Shine

Compass Bank Parking

Lot

9:00 AM-4:00PM

October 10Board Meeting 11:00

General Meeting

12:00

El Paso Club

Chase Bank Bldg.

(Downtown)

CONDOLENCESTo Art Garcia on the loss of

his mother Ofelia

Hola! Where has this year gone? It seemslike yesterday we were installing FrankArroyos as our new president and now weare five months from Frank being our Pastand Edmundo Dena being our newPresident. It makes me think of the old adage“The older you get the faster time goes by”.Enough of the talk about being old. You areonly as old as you act so we still have abunch of youngsters in our Association!

I just want to keep everyone in the loopabout our up and coming events. We havethe Wheels and Deals “Pachanga” (party)coming up September 29th at the CompassBank parking lot in front of the AssociationOffice. We have several car clubs that will be

showing their vehicles. There will be a stagewith live bands performing and hopefullyGourmet Food Trucks with great food. Lastbut not least we will have a tent trade showwith thirty two 8’x10’ booths available for$250.00 for rent. We anticipate a largeturnout due to the advertising and freewaylocation we have. For more informationplease contact Ray Adauto.

On November 12th the Association will besponsoring a Pro Am Sun Countrytournament at Painted Dunes Desert GolfCourse. The event promises to be a greatouting with pro golfers from all over NewMexico and West Texas, those guys and galsthat you see at the country club or municipal

golf course. This is competitive golf withinterest from several of our members. Theentry fee is $500.00 per three man team withthe pro that makes four. You must have aUSGA established handicap to play in thisevent, and we are limited to 24 teams. Moreon this in the coming months.

We had the Bowling outing on August 22and Ray informed me that we had ninety sixbowlers. As I looked around everyone washaving a blast. I want to thank Ray andMargaret for an outstanding job.

Thank you for your support and I lookforward to seeing you all at the next Generalmeeting.

An American Herojoins the stardust

Neil Alden Armstrong (August 5, 1930 – August 25, 2012)

American astronaut and first man to walkon the surface of the moon died on August 25from complications of cardiac surgery torepair blocked arteries. He was an unusualhero in that he shunned the spotlight ofperhaps the greatest accomplishment ofmankind and preferred to return to a simplelife of teaching. Armstrong was a pilot first,engineer second and dedicated father andgrandfather. His strong sense of getting thejob done proved lifesaving on numerousoccasions as he flew missions over Koreaand piloted experimental aircraft. His moveinto the astronaut corps was a naturalextension of his need to ensure thatAmerican aviation was the best in the world.As an astronaut Armstrong was among thoseelite military aviators who embraced the

challenge of space flight and of making surethat American technology would be second tonone.

With the looks of a Norman Rockwell boyNeil Armstrong seemed the least likely of theastronauts to make it to the moon first. Not apart of the original Mercury Seven Armstrongwas flying the X15 and X20 Dyna-Soar untilthe call came to be a part of the Next Nine,those next generation astronauts who wouldpilot Gemini and Apollo. He was almost lostin space during a harrowing uncontrolledtumble during Gemini 8 as he rode with DavidScott. Spinning at about one turn a secondafter undocking from the booster. Thisdangerous spin was finally controlled by theactions of Commander Armstrong. Had henot been able to the craft, and the twoastronauts would have been America’s firstfatalities in space.

In 1968, already assigned to the Apolloprogram, Armstrong was testing BellIndustries simulator Lunar Lander Vehicle.This vehicle was a tethered simulator thatmimicked the controls for decent onto the

lunar surface. A serious malfunction occurredduring one test and Armstrong was nearlykilled. Armstrong called the LM test one of themost important for the team as it providedexperience on landing on the moon.

As commander of Apollo 11 the chance tobe first on the moon was cemented, so longas the mission didn’t encounter problems.NASA and the world were stunned earlier inthe program as fire took the lives of threeastronauts strapped into Apollo 1. Delaysand rotations of crews place Armstrong, BuzzAldrin, and Michael Collins on the flight toland. Others had been to the moon andcircled it or orbited the earth in preparation forlunar landing but Apollo 11 was the onemission with the opportunity. After a routineflight and undocking, Armstrong and Aldrinleft Collins in the command module andascended to the lunar surface. Landing wasannounced with “Houston, Tranquility Basehere. The Eagle has landed.” Not until afterthe mission was complete did we learn thatArmstrong had manually piloted the LEMover boulders with only 20 seconds of fuel

left. “One small step for man, one giant leap for

mankind,” came the words from Armstrong ashe slid down the ladder onto the surface. Manhad indeed leaped from first flight to themoon. With Armstrong, Aldrin and CollinsAmerica was on top of the space race. Uponretiring from NASA Neil Armstrong shunnedthe spotlight, something that could havemade him super rich. Instead he taughtaeronautical engineering and staying out ofpolitics and the limelight.

The least likely and most reluctant allAmerican boy was mourned by the world. Hewill always live within the hearts of those whobore witness to his most publicaccomplishments. Neil Armstrong saw thestars and explored; now he joins those samestars as the cosmic dust of eternity. Thereare heroes and there are heroes. God BlessNeil Armstrong and thank you for yourdreams.

-Ray Adauto

Showroom: 2131 Missouri

915 • 533 • 6045 fax • 533• 6096

Thomas R. Brown, Owner


Sam ShallenbergerWestern Wholesale Supply

Associates Council

� execuTive oFFicerS

Frank Arroyos - President

Cisco Homes

edmundo Dena - vice President

Accent Homes

Frank Torres - Secretary/Treasurer

GMF Custom Homes

Sam Shallenberger - Associates council

Western Wholesale Supply

Greg Bowling - immediate Past President

Tropicana Homes

ray Adauto - executive vice President

El Paso Association of Builders

� couNciL/commiTTee cHAirS

Affordable Builders council

Bobby Bowling IV

Associates council

Sam Shallenberger

Build PAc

Randy Bowling

Desert Green Building council

Javier Ruiz

industry Promotions

Greg Bowling

Land use council

Vacant

Young Designer Award

John Chaney

remodelers council

Rudy Guel

membership Drive

Mike Santamaria

Finance committee

Kathy Carrillo

education committee

Frank Spencer

� ADviSorY To THe BoArD

J. Crawford Kerr, Attorney, Firth, Johnston

& Martinez

� BoArD oF DirecTorS

Joe Bernal, Joe Bernal Insurance

Doug Borrett, Karam Co.

Kathy Carrillo, Pioneer Bank

John Chaney, Passage Supply

Sergio Cuartas, BIC Homes

Ted Escobedo,Snappy Publishing

Art Garcia, El Paso Door

Juanita Garcia, ICON Custom Home Builders,LLC

Samira Gonzalez, Edwards Homes

Lorraine Huit, Cardel Design Group

Walter Lujan, Dawco Home Builders

Sal Masoud, Del Rio Engineering

Bruce Meyer, JDW Insurance

Edgar Montiel, Palo Verde Homes

Kathy Parry, Hunt Communities

Javier Ruiz, Senercon & Border Solar

Frank Spencer, Aztec Contractors

Henry Tinajero, WestStar Bank

Linda Troncoso, TRE & Associates

Ken Wade, El Paso Building Materials

Paul Zacour, Zacour & Associates

2011 Builder member of The Year

Greg Bowling

Tropicana Homes

20110 Pat cox Award

Kathy Parry

Hunt Communities

2011 Associate of The Year

Sam Shallenberger

Western Wholesale Supply

John Schatzman Award

Bob Bowling III

Tropicana Homes

ePAB Special Award

Rudy Guel

Guel Construction

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

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.

© 2012 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

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

� TAB STATe DirecTorS

Doug Borrett, Karam Co., Life Director

Randy Bowling, Tropicana Homes

� NATioNAL DirecTorS

Bobby Bowling IV.

Demetrio Jimenez

NATioNAL ASSociATioN oF

Home BuiLDerS

(800) 368-5242

TexAS ASSociATioN oF

BuiLDerS

(800)252-3625

years

E L P A S O

BUILDERSA S S O C I A T I O N O F

B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 194 6

www.elpasobuilders.com www.epbuilders.org

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