NAHB Washington, DC- Nationwide

housing affordability during the first quarter

of 2011 rose to its highest level in the more
than 20 years it has been measured,
according to National Association of Home
Builders/Wells Fargo Housing Opportunity
Index (HOI) data released in May.
The HOI indicated that 74.6 percent of all
new and existing homes sold in the first
quarter of 2011 were affordable to families
earning the national median income of
$64,400. This eclipsed the previous high of
73.9 percent set during the fourth quarter of
2010 and marked the ninth consecutive
quarter that the index has been above 70
percent. Until 2009, the HOI rarely topped
65 percent and never reached 70 percent.
"With interest rates remaining at
historically low levels, today's report
indicates that homeownership is within
reach of more households than it has been
for more than two decades," said Bob
Nielsen, chairman of the National
Association of Home Builders (NAHB) and
a home builder from Reno, Nev. "While this
is good news for consumers, home buyers
and builders continue to confront extremely
tight credit conditions, and this remains a
significant obstacle to many potential home
sales."
Syracuse, N.Y., was the most affordable
major housing market in the country during
the first quarter of the year. In Syracuse,
94.5 percent of all homes sold were
affordable to households earning the area's
median family income of $64,300.
Also ranking near the top of the most
affordable major metro housing markets
were Youngstown-Warren-Boardman,
Ohio-Pa.; Indianapolis-Carmel, Ind.;
Warren-Troy-Farmington Hills, Mich.; and
Toledo, Ohio.
Among smaller housing markets, the
most affordable was Kokomo, Ind., where
98.6 percent of homes sold during the first
quarter of 2011 were affordable to families
earning a median income of $61,400. Other
smaller housing markets near the top of the
index included Monroe, Mich.;
Cumberland, Md.-W.Va.; Elkhart-Goshen,
Ind.; and El Paso, Texas.
It continues to amaze the Association
that year after year the economic well being
of the housing market in El Paso is
threatened with new fees and costs, said
Ray Adauto, Executive Vice President of
the El Paso Association of Builders. For
years we have tried to point these statistics
to the local governments, especially the
City of El Paso, without much response
other than to raise fees for construction and
infrastructure, said Greg Bowling,
President of the EPAB.
The bottom line is that independent
analysis done by the respected authority on
affordability for housing in a market backs
up our concerns and frustrations, Bowling
continued. El Paso is now in the company
of cities like San Diego, Honolulu and San
Francisco on affordability according to the
latest statistics.
NAHB Washington, DC - With some
members of Congress actively pushing to abolish
Fannie Mae and Freddie Mac and end the federal
backstop for housing, the National Association of
Home Builders (NAHB) told Congress that
maintaining an appropriate level of government
support is absolutely essential to preserve financial
stability.
Testifying before the Senate Banking
Committee, NAHB First Vice Chairman
Barry Rutenberg, a home builder from
Gainesville, Fla., said that absent a federal
role to help reassure mortgage market
investors, the cost and availability of
mortgage credit would be subject to
unpredictable volatility.
The historical track record from the 1998
Russian crisis to the tragedy of Sept. 11
clearly shows that the private sector is not
capable of providing a consistent and
adequate supply of housing credit without a
government backstop, said Rutenberg.
Therefore, as the private market transitions
to assume a greater responsibility, there must
be a predictable, permanent federal role in
order to ensure a consistent supply of
mortgage liquidity and to allow rapid and
effective responses to market dislocations
and crises.
While NAHB strongly supports efforts to
modernize the nations housing finance
system, it is critical that any reforms be well-
conceived, orderly and phased in over time.
NAHB opposes legislation pending in the
House and Senate that would effectively
wind down the operations of Fannie Mae and
Freddie Mac without offering a clear vision
for the future housing system and a non-
disruptive transition to a new secondary
market framework. Similarly, NAHB
believes that more than a dozen short-term
legislative proposals offered by House
Republican lawmakers to reduce the support
Fannie Mae and Freddie Mac provide to the
mortgage markets represent a piecemeal
approach to reform that would disrupt the
housing market and could push the nation
back into a deep recession.
New legislative efforts would take a very
different tack from these proposals. Recent
bipartisan legislation (H.R. 1859) introduced
by Reps. John Campbell (R-Calif.) and Gary
Peters (D-Mich.) would replace Fannie Mae
and Freddie Mac with five private companies
that would issue mortgage-backed securities
that have government backing. Legislation
currently being developed by Rep. Gary
Miller (R-Calif.) would also include a
predictable government role in the secondary
mortgage market to preserve financial
stability in the market and maintain a stable
housing sector.
NAHB views the introduction of H.R.
1859 and Rep. Millers draft legislative
proposal as very positive developments as
debate on the future of the housing finance
system moves forward in Congress, said
Rutenberg. Maintaining a continuing and
appropriate level of government support is
necessary to promote investor confidence
and ensure liquidity and stability for
homeownership and rental housing.
Absent a federal backstop for housing,
Rutenberg warned that the 30-year, fixed-
rate mortgage, the major housing finance
tool for most Americans, would become
increasingly scarce and much more costly,
pricing many creditworthy borrowers out of
the marketplace. Similarly, the availability of
financing for multifamily housing would fall
woefully short of the growing need.
Qualified Residential Mortgages
Also of great concern to NAHB are
proposals unveiled in late March by six
federal agencies that would establish a
Qualified Residential Mortgage (QRM)
standard featuring a minimum 20 percent
downpayment on a home loan. Requiring 20
percent down would keep homeownership
out of reach for most first-time home buyers
and middle-class households.
About 62 percent of first mortgages taken
out to purchase a home would not have
qualified under the proposed QRM standard
because they had down payments of less than
20 percent, according to LPS Applied
Analytics, a mortgage data firm.
NAHB estimates that it would take 12
years for a typical family to save enough
money for a 20 percent down payment on a
median-priced single-family home and other
research has found it would take even longer.
If buyers are denied access to affordable
housing credit, the shadow inventory of
foreclosed homes will not be drawn down, a
housing recovery will not take hold and
economic growth will stall, said Rutenberg.
Moreover, low-down payment home loans
have been originated safely for decades and
are not what drove the housing lending
crisis, added Rutenberg.
Subprime, no-doc and other alternative
mortgage products crashed our economy, he
said. We believe the Administration and
regulators must acknowledge this fact and
offer a new plan that ensures a safe and
healthy mortgage market and keeps
homeownership affordable for working
American families.
Issue 6 2011 Building El Pasos tomorrow today
Builders Outlook
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www.elpasobuilders.com
buiLdErs to congrEss:
Maintain federal role to ensure healthy mortgage market
Housing AffordAbiLity risEs to rEcord LEvEL
tight financing continues to constrain sales
El Paso makes the top ten
least affordable markets
10 Least Affordable
Metro Areas
1. New York-White Plains-Wayne, NY-NJ
2. San Francisco-San Mateo-Redwood City, CA
3. Los Angeles-Long Beach-Glendale, CA
4. Honolulu, HI
5. Santa Ana-Anaheim-Irvine, CA
6. San Jose-Sunnyvale-Santa Clara, CA
7. Bridgeport-Stamford-Norwalk, CT
8. Nassau-Suffolk, NY
9. San Diego-Carlsbad-San Marcos, CA
10. El Paso, TX
Builders Outlook 2
JUNE 2011
By the time most of you read this the
Association would have had its first
general meeting in Las Vegas. The
planning for this has been going on for
months and its been an interesting
adventure for the guys working on it. First
let me thank Sam Shallenberger my
Associates Chairman for coming up with a
novel idea of mixing fun with work. His
conspirator of course is Ray Adauto and
between both of them we owe a round of
applause for actually having this come
through. Id also like to thank all of the
members who looked at this trip as a way to
break out from the daily routine, enjoy a
visit to Las Vegas, and experience the first
ever foray into a meeting somewhere other
than El Paso. With our really good turnout
I think we have a future trip or two to look
forward to in 2012 and beyond.
While Las Vegas is always fun since I
love to play golf while Im there, I still have
another trip for the Association later this
month to Houston. Ray and I will be
leading our delegation to the Summer TAB
board meetings in Houston June 22-24. The
main topic of discussion will be the results
of the Texas Legislative year and how we
did as an organization. TAB is our main
lobbyist for issues pertaining to housing in
the Texas legislature, and Im proud to say
that we have an excellent group of lobbyists
working for us. In addition there are a lot of
TAB members who routinely go to Austin
to speak for and against legislation
including many of our own from El Paso.
The teamwork shown has paid dividends
for all of the Texas builders and Associates.
The preliminary reports from TAB indicate
that the legislation that was on TABs radar
went in our favor, overwhelming favor
actually. I will present you a full report
during our late June Board meeting to be
held after the TAB meetings.
While Im thanking folks Id really like to
thank Frank Spencer from Aztec
Construction who took on the education
Czar position this year. He has presented
some very timely and informative seminars
and coordinated other with some of our
specialty members, like our fall prevention
training given by A & E Environmental and
Safety Consultants. Well attended and
presented. The book keeping seminar also
brought the members some great
information on how to get your financials in
shape. The number one complaint we hear
from our financial members is that some of
us are not ready to present a financial
statement or proposal to a bank or credit
union for consideration. Things are tight
enough without having the right tools in
your tool box. Thanks Frank. I look
forward to more education for our
members.
Finally as you already know the
association is saying goodbye to our Vice
President Del Huit, who has decided to
move onto bigger and better things. He
stepped into the VP position at a time of
need within the Association. He is a Past
President with a love of our organization
and a caring hand where ever we need him.
Del has a couple of very well regarded
inventions that he is marketing and he is
finding success doing so. Our best wishes
and our sincere thanks for another job well
done. That means that Frank Arroyos will
serve as VP for the next six months, and
then take the office of President for 2012.
By that time Frank will have served as
treasurer and VP for nearly 16 months, a
good enough amount of time to get him
ready to be President. We will name our
selection to serve as Secretary Treasurer at
the upcoming board meeting. So with that I
wish you all good sales and a safe summer.
Greg
Bowling
President,
El Paso Association
of Builders
Presidents Message
Builders Outlook 3
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Seven percent. Thats the number that
was reported as the voter turnout in city
elections for council districts. Seven
percent. Its no wonder that politicians do
what they want in this community. No
one is going to worry about answering to
the People if only seven percent actually
care enough to vote.
Standing in front of council is almost
pointless given the fact that only seven
percent of the constituency is engaged.
Why should a politician, at any level,
feel compelled to execute the will of the
people when only a few of the people
actually elect them? What fear would
you have as a politician if you only
needed 1,000 votes to be elected to a four
year term, controlling and doling out
hundreds of millions of taxpayer dollars
and controlling the future of a city? If you
said none, you are right. NONE.
Imagine the insaneness of having that
politician dictate YOUR future
indebtedness, tax rate, fees, etc. with the
mandate of the voters? What mandate?
I am so proud that I have won the hearts
of minds of my constituency but most
importantly that I am the overwhelming
voice of the people politicians are heard
to say on election night. Really? I mean,
can you sleep well at night knowing that
93% of the voters didnt even show up?
Are you really that significant? Or are
you so insignificant that only seven
percent voted. Seven percent over the two
weeks of voting. I just didnt have time
is a favorite excuse of those who dont
vote. Sorry, it doesnt make any sense.
Now days you dont even need an
excuse to vote early. While youre out
buying the next great sneaker, why not
step over to vote? Too easy. Too darn
easy. So shame on you who didnt
exercise your blood given right to vote.
(Yeah, Freedom isnt free you know.)
Shame on the politicians that think they
have a mandate with 51% of seven
percent. So when its all said and done,
and brother you are done, well done (as in
crispy done), dont fret. Our next
election could have a whopping thirteen
percent participate. Instead of just
millions of dollars think trillions of
dollars because it will be a national
election for President and Congress.
Change the numbers any way you want
this is still awful. Welcome to
Scottsdale, Texas. Home of High taxes &
higher fees; with low income and lower
voting turnout. No accountability wanted
here. Yes sir, the politicians dream come
true.
Strange weather patterns have been
showing up this year here and in other
areas of the country. The high winds,
dust, and all that it brings us is nothing
compared to the destruction suffered in
the South and Midwest. Tornadoes are
natures sledge hammer, bringing
destruction and death to the areas that
they touch down onto. Texas, Oklahoma,
Kansas, Missouri, and tornado alley are
somewhat used to this, and peoples lives
are on edge every year around this time.
You have seen the horrible destruction
that happened in Mississippi and
Alabama earlier this year, then the
horrific loss of so much of Joplin,
Missouri. Seeing the pictures and videos
will never fully impact us the way that the
witnesses and victims have been
impacted. Survivors always seem to live
with the guilt of surviving such a
devastating event. Why is one house
standing while neighbors around them
arent? Why am I alive yet so many
arent. During these events heroes
emerge from the rubble. Ordinary people
put in extraordinary circumstances
reacting to that event in an unselfish way.
Thats what seems to be coming out of
this latest tragedy. It includes the story
told on NBC news about a young couple
who ran into the bathroom to escape the
furry of the tornado; with the young
husband placing his body over his wifes
to protect her. In the fleeting minutes it
took for the tornado to destroy their house
this young husband lay dead from a
punctured lung that debris from the storm
had penetrated. He gave his life
protecting her and in turn gave the rest of
us a love story of courage, strength and
commitment. I dont recall his or her
name frankly because I starred at the TV
mesmerized that such a story was even
possible. This wasnt a movie or a novel;
here it was in real life.
Dozens of stories like this one have
been written or are on some future page
of history. While all of the storms leave
devastation I also think of the one thing
that will also emerge from it: hope. You
see, in the following weeks, months and
years our industry will give that
community and the people in them some
hope as the wreckage is cleared, the piles
of debris cleared. That hope will come in
the sound of hammers and saws, trucks
rolling in with timber and concrete. Hope
will shine through as the walls of a home,
a business or a church go up one at a time.
With each will come a call to the future of
the community that life really does go on,
through the pain and through the misery
of it all hope is the faith we rely on at
times like this. Through tragedy comes
opportunity for healing and for newness.
With prayer and commitment all things
rise again. It is clear from the pictures we
see now that those communities have
both.
Pitiful voter turnout allows politicians to take
control of our city
Perspective
Builders Outlook 4
JUNE 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 over
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Builders Outlook
5 JUNE 2011
Builders Outlook 6
JUNE2011
Every session there seems to be a
particular bill de jour as the French
would put it. Also, there are bills that
address problems that dont exist. This
year, it would seem the prize goes to the
same issue: elections.
A quick count showed that in excess of
60 bills were filed having some impact on
elections and voting. Based on most of the
testimony, the problem centered on voters
of Hispanic heritage. Most of the
testimony repeatedly referred to the south
Texas elections or the massive wave of
undocumented immigrants who vote en
masse at election time.
There may be some justification for the
concerns by the members who filed the
bills. After all, the growth of the number
of legal Hispanic voters has far
overshadowed the growth of any other
ethnic group. It is never easy to surrender
supremacy. It is too bad that the biggest
problem with Hispanic voters is that
turnout at elections is dismal; not that the
majority are voting illegally.
Perhaps the most visible bill de jour was
the voter id bill. In working elections for
decades, I do not recall ever seeing
election workers allowing individuals to
vote without confirming their eligibility.
By all the public comments, you would
think there was actual evidence that
election workers were conspiring with
voters (let us be honest, the voters seem to
be Democrats that are the center of
attention) and passing unlawful voters to
the ballot machine. That is just not
the case.
The testimony by the Attorney General's
office confirms that. After investigating
over 20 million votes over several years,
the final count of those indicted was less
than the number of days in a month. None
of the actual convictions were confirmed
to be based on identity theft; which the
voter id bill was supposed to fix.
The other bills addressing election
"problems" included fixing absentee
voting, assisting absentee voting, entering
false information on a registration form,
various behaviors by election workers or
judges or being a non-citizen and voting.
The most ambitious bills included criminal
penalties or elevation of the violation
degree (misdemeanor to felony).
The most prolific filer happened to be in
the Rio Grande Valley representative who
decided that the Democratic Party was not
the place for his best interests. It almost
seemed as if he was trying to out-
conservative the long time Republicans.
The thing about his bills, some of which
passed the House floor, is that evidence
from state agencies confirmed that a
problem did not exist. The Legislative
Budget Board released a criminal impact
statement on one bill, which is descriptive
of most of the other bills, that stated
"less than five individuals were
arrested, and less than five were placed
under misdemeanor community
supervision for providing false
information on an application for an early
voting ballot. For this analysis, it is
assumed the number of offenders
convicted under this statute would not
result in a significant impact
FIVE OFFENDERS? Is that evidence
of widespread fraud?
There are a couple of ways of
interpreting the proliferations of election
bills filed. One is that there is evidence of
problems. Since the elections were so
tilted to the right, one might question
whether the conservatives were legally
voted into office.
The other thought is not so easy to
dismiss. Some may consider the effect of
these bills is intended to send a message
that ultimately causes voter intimidation.
Some honest voters, election workers and
poll judges may be intimidated by the slew
of attempted law changes. That is a
dangerous outcome to an effort to solve
problems that, based on evidence, do not
exist.
Election legislation focuses on non-existent problems
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State Representative
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Builders Outlook
7 JUNE 2011
The Lending Crisis
The Decline of AD&CLending
The nations home builders know that lending
for acquisition, development and construction
(AD&C) purposes is restrictive. Even in areas
of the country where home prices are stable or
growing and demand exists for new
construction, the lending environment is
challenging, which constrains residential
constructions traditional role of leading the
economy out of recession.
Lending for residential construction
purposes is significantly more restrictive than
loans for commercial construction activities,
and these facts are at odds with reporting from
certain surveys of financial conditions. Data
from the FDICs Statistics of Banking, graphed
below, confirm the anecdotal evidence from
builders of tight AD&C lending conditions.
Since the first quarter of 2008 peak of
AD&C lending for residential construction (1
to 4 unit properties), the total volume of loans
is down from $203.8 billion to $56 billion a
decline of $147.8 billion or 73%. Since early
2008, the stock of home building AD&C loans
held by FDIC-insured institutionshas declined
on average 10 to 11% every quarter, with the
decline equal to 10.9% for the first quarter of
2011.
All other construction and development
loans, including commercial and 5+ unit
residential properties, are down 45% since the
peak in the third quarter of 2008. This decline,
while large, is still considerably smaller than
the decline for residential AD&C loans.
It is worth notingthatsome sources, such as
the Federal Reserve Senior Officer Loan
Survey, suggest that business lending
conditions are improving for real estate loans.
The following chart graphs the Fed survey
results for reporting of net tightening for
commercial real estate loans. The most recent
survey indicates a greater percentage
ofrespondents reporting net loosening of credit
availability for the first time since the Great
Recession began.
However, NAHB survey data of home
builders and the FDIC data reported above
continue to indicate that AD&C lending
conditions remain restrictive for home building
nationwide.
Impeding Availability of FHA Financing
Would Be a Setback for Home Buyers,
NAHB Tells Congress
At a time when qualified home buyers are
experiencing difficulty in obtaining mortgages
because of overly restrictive underwriting
requirements, the federal government needs to
ensure that a reliable and adequate flow of
housing credit is available through the Federal
Housing Administration (FHA), according to
the National Association of Home Builders
(NAHB).
"If we look to the dramatic increase of FHA's
market share over the past few years, we can
see how essential the program is for our
nation's economic recovery," NAHB First Vice
Chairman Barry Rutenberg, a home builder
from Gainesville, Fla., told the House Financial
Services Subcommittee on Insurance, Housing
and Community Opportunity.
In 2006, when private lenders boasted a
healthy market presence, FHA's market share
was at an all-time low of 2 percent. During the
past two years, with the private mortgage
market vanishing in a bad economy, FHA
insured nearly 30 percent of the single-family
mortgage market.
"This striking shift is evidence that FHA is
performing its mission of providing the federal
backstop to ensure that every qualified
American home buyer has access to a stable
mortgage product," said Rutenberg.
As Congress looks for ways to reform the
FHA, he urged lawmakers to proceed carefully
in order to avoid consequences that could harm
home borrowers. For example, NAHB is
concerned that increasing the downpayment
from 3.5 percent to 5 percent -- as called for in
a draft legislative proposal -- would create a
substantial burden for all American home
buyers, particularly younger buyers and those
with strong credit profiles who lack the
necessary funds to make the higher
downpayment.
"Research has shown that requiring a higher
downpayment does little to reduce risk of
default but causes home buyers to use more of
their reserves for the downpayment," said
Rutenberg. "Sound underwriting is the key to
minimizing foreclosures and defaults, not
higher downpayments. This is demonstrated by
current FHA foreclosure reports on loans made
to borrowers with sound credit profiles, which
have significantly improved."
Absent congressional action, the current
limits for FHA insured loans and Fannie Mae
and Freddie Mac mortgages are scheduled to be
reduced on Oct. 1. Meanwhile, the same
legislative blueprint that would increase FHA
downpayment requirements would impose
additional reductions in loan limits for a
significant number of areas throughout the
country, a development that Rutenberg warned
could leave a large number of first-time home
buyers without a key source of mortgage
financing.
"Counties across the country would see their
loan limit reduced by tens of thousands of
dollars, placing further downward pressure on
home prices and impairing the ability of
borrowers to use FHA-insured mortgages to
purchase new homes," said Rutenberg.
To keep FHA, Fannie Mae and Freddie Mac
loan limits at their current levels, NAHB called
on Congress to support H.R. 1754, the
Preserving Equal Access to Mortgage Finance
Programs Act, a bipartisan measure sponsored
by Reps. Gary Miller (R-Calif.) and Brad
Sherman (D-Calif.).
Meanwhile, the draft legislative proposal,
which has not yet been formally introduced,
would remove the limit on the annual mortgage
insurance premiums on single-family home
loans, even though the agency has already
implemented a three-step premium increase
and the strong performance of recent loans
made under revised underwriting criteria makes
a compelling case that a further acceleration of
program premiums is not warranted.
"FHA's capital resources are stabilizing and
recovering. Allowing further, unlimited
increases in the insurance premiums now
would put unnecessary additional financial
strains on potential home buyers," said
Rutenberg.
The legislative plan would also transfer rural
housing programs within the Rural Housing
Service (RHS) from the Department of
Agriculture to the Department of Housing and
Urban Development. NAHB opposes this
proposed move because the RHS programs are
uniquely structured to address the housing
credit needs of low- and moderate-income
persons in rural areas, which are very different
from those found in urban and suburban areas.
"If the RHS single-family and multifamily
programs were consolidated into existing HUD
programs, it would make it more expensive for
persons living in rural areas to obtain an
affordable mortgage to purchase a home and
more difficult to finance small properties in
rural areas because HUD does not have a
program that meets this need effectively," said
Rutenberg.
"As Congress looks to improve the FHA and
RHS, these programs cannot be separated from
the larger discussion of reforming the complex
housing finance system, including future
reforms to Fannie Mae and Freddie Mac," he
added.
EPABONTHESCENE
JUNE2011
EPT LAND
Smart Growth
Groundbreaking
Richard Aguilar and his partners looked
on with pride as their newest Westside
development was unveiled. The public
event was the office ground breaking for
Montecillo, a Smart Growth plan involving
high density design with upscale urban set-
tings. The property is located off of Mesa
Street between Executive Boulevard and
the old Jaxsons restaurant. The execution of
the plan required the removal of a mountain
on the west side of Mesa that took several
months to complete. Primary engineering
was done by Conde Engineering while CF
Jordan is the projects primary contractor.
The event drew a large crowd to the view-
ing area as wind played havoc with the tent
and presentation. David Bogas acted as
master of ceremonies while three city coun-
cil representatives along with the director of
planning also spoke. The first phase
includes four multistory units with town-
houses on the second floors up on three of
the buildings while the first floor is dedicat-
ed to retail stores. The ongoing project will
continue for several years as the large devel-
opment grows.
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you reserve a rental car for busi-
ness or pleasure!
For information go to:
www.nahb/ma.org
call 778-5387
The El Paso Association of Builders announced that three
local high school students won the 2011 El Paso Association of
Builders Young Designer competition. The three will share
$4,000 in scholarship money. The top three finishers in this
years competition are Ismael Olivares, winner of $2000 schol-
arship; Caitlin Lambing, winner of $1200; and Gustavo Pena,
winner of $800 scholarship. The top two were only separated
by less than 5 points in total, showing how competitive the
work is. All of the students attend the El Paso ISD Center for
Career and Technology Education (CCTE). The instructor is
Cecilia Orozco. Entries were also received from Socorro ISD
through Ms. Lynn Cordova, instructor.
In a statement from Greg Bowling, President of the El Paso
Association of Builders (EPAB) the three students competed in
a judged event that began when school started. It is gratifying
to see the work that all the students who entered into the com-
petition did, and frankly its tough to judge, Bowling said.
We have had this scholarship award now for a number of
years and it continues to be a significant contribution to the
future education of the winners, he continued.
The EPAB Young Designer Chairman is John Chaney of
Passage Supply Company in El Paso. His dedication to the
scholarship was also applauded by Mr. Bowling. John is the
driving force from our standpoint, and he has worked hard to
ensure that students can move to higher education and contin-
ue to look at a professional career in the home building trades.
For his part Mr. Chaney is grateful for the experience. Every
year it gets better and better, but without the support of our edu-
cators, especially like Ms. Cecilia Orozco and Lynn Cordova
from Socorro High, none of this would happen, Chaney said
The next contest will be announced for the 2011-12 school
year. We will be looking for some great talent next year,
John Chaney said. Its a challenge that has a great outcome,
he continued.
Young Designers
vie for scholarship
News from the
Texas
Real Estate
Center
recenter.tamu.edu
Builders Outlook 10
JUNE2011
Texas is main
gate for Mexico
freight
Texas leads the nation in freight
with Mexico and has for at least 15
years. Even during the height of the
recession, when freight traffic
dipped overall, Texas still ranked
first.
In August 2010, Texas became
the first state to record more than
$10 billion in surface trade with
Mexico in one month. Texas also
was the first state with more than
$100 billion in surface trade with
Mexico in a single year.
In all, Texas-Mexico surface trade
accounted for $114.5 billion worth of
goods, up 33 percent from $86
billion in 2009, according to the U.S.
Bureau of Transportation Statistics.
California was a distant second in
2010 with Mexico surface trade at
$47.6 billion.
Of the top U.S. ports, Laredo
ranks No. 1 in North American trade
volumes in all modes, including ship
and air, crossing 13.2 percent in
2010, according to the U.S.
Transportation Department.
Six Texas ports rank among the
top 17 U.S. ports for North American
trade. After Laredo, they are El Paso
(No. 5), Hidalgo (No. 7), Houston
(No. 10), Eagle Pass (No. 12) and
Brownsville (No. 17).
Texas GDP up 3.7
percent in 2011
Texas gross domestic product is
expected to grow by 3.7 percent in
2011, propelled by the states top job
creation and higher energy prices,
according to BBVA Compass
second quarter economic outlook
report.
The states energy sector has
benefited from technological
advances, including new drilling
methods, as well as output growth in
times of high oil prices.
Among the areas of expected
growth is the states industrial
concentration. Texas is home to
22,803 manufacturing companies
that collectively employ 1.16 million
workers.
Meanwhile, Texas retail sales are
up about 4 percent as of January.
Overall, the report gives the U.S.
an outlook of 3 percent GDP growth
in 2011, but cites that the labor
market will still lag behind that
growth, creating just 1.3 million new
jobs in the last 12 months.
www.swher.com
5400 Suncrest Dr. C-6 El Paso, Tx. 79912
Ph. (915) 613-4168
Fx. (915-833-6437
SENERCON
Southwest Energy Conservation, LLC
www.energystarelpaso.com
Change the World...
One Home at a Time...
7365 Remcon Circle El Paso, TX 79912
Builders Outlook
JUNE 2011 11
Showroom:
2131 Missouri
915 533 6045 fax 533 6096
Thomas R. Brown, Owner
APRIL 2011
1. Airway & Montana 10 collisions
2. Joe Battle & Montana 10 collisions
3. Montwood & Zaragoza 8 collisions
4. Mesa & Shadow Mtn/Sunland Pk 7 collisions
5. Artcraft & Upper Valley 6 collisions
6. Gateway E. & Lomaland 6 collisions
7. Gateway West & Yarbrough 6 collisions
8. Mesa & N. Desert 6 collisions
9. Doniphan & Sunland Park 5 collisions
10. Fred Wilson & Gateway N. 5 collisions
2011 YTD Top Collision Intersections:
1. Joe Battle & Montwood 45 collisions
2. Gateway West & Yarbrough 26 collisions
3. Airway & Montana 24 collisions
4. Alameda & Americas 20 collisions
5. Gateway West & George Dieter 20 collisions
6. Global Reach & Montana 20 collisions
7. Gateway West & Lee Trevino 20 collisions
8. Montwood & Zaragoza 20 collisions
9. Gateway East & Lee Trevino 19 collisions
10. Mesa & N. Desert 19 collisions
EL PASO, TEXAS The El Paso Police Department has identified the top collision intersection locations for April 2011 and YTD 2011. The top intersection collision
locations are as follows:
Drivers are always encouraged to observe all traffic laws and to use extra care upon approaching all intersections.
Police identify top collision intersections
Builders Outlook
12JUNE 2011
Y
o
u
R
Plumbing Supply
Source in El Paso
4 43 30 00 0 R Ro os sa a S St t. .
E El l P Pa as so o, , T TX X 7 79 99 90 05 5
( ( 9 91 1 5 5) ) 5 53 32 2- -3 39 91 17 7 F Fa ax x: : ( ( 9 91 1 5 5) ) 5 53 32 2- -3 39 91 19 9
I 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
I couNcil/committeecHairs
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
Home Show Sam Shallenberger
Remodelors Rudy Guel
Membership Drive Mike Santamaria
Finance Committee Kathy Carillo
Education Committee Frank Spencer
I advisorYtotHeboard
J. Crawford Kerr, Attorney, Firth, Johnson
& Martinez
I boardofdirectors
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
I tabstate directors
Doug Borrett, Karam Co., Life Director
Randy Bowling, Tropicana Homes
I 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 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
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
June 11
General meeting
Las Vegas, Nevada
June 23-25
TAB Board meetings
Houston, TX
June 28
Board meeting
12:00
TBD
July 13
Associates Council
meeting
TBD - EPAB
July 19
Bowl-a-thon
at Bowl El Paso
11144 Pelicano
NEW MEMBERS RENEWALS
SODA SPONSOR
Eyesite Surveillance, Inc.
Dean Olson
P. O. Box 13612
Chandler, AZ 85248
602-318-1712
Builders Outlook 13 JUNE 2011
UPCOMING EVENTS
Thanks to our
JUNE SODA
SPONSOR:
Pioneer Bank
CONDOLENCES
To Bruce Meyer on the loss of
his Mother
To John Cullers on the loss of
his dad Elmer
To the family of Hector Duenez
To the family of Jerry Levy
CONGRATULATIONS
To Javier and Maria Isabel Ruiz
and big brother Sebastian
On the birth of Carolina Isabel
Born May 28, 2011
Weighing 6 lbs. 1 oz.
Membership News
11395 James Watt, Suite A-11 79936
915-633-8002
AAA Glass
All Precision
Sheetmetal Works
Bock & Associates
Cemex
Cimarron Mortgage
Capital
Dempsey Appraisal
Service Inc.
DWS Building Supply
Emerald Earth
Lighting
Environmental and
Safety Solutions
First National Bank
Fortune Custom
Homes
Guel Construction
Home Builders
Insurance Services
Karam Company
McClintock Self
Storage
Morrison Supply
Company
New Horizon Builders
One Source Federal
Credit Union
Pat Montgomery, CPA
Pioneer Bank
Presidential Homes
Real Estate Weekly
Rudolph Chevrolet
6046 Surety Dr 915-778-5387 www.elpasobuilders.com
Bowl-A-Thon!
Tuesday, July 19 at Bowl El Paso
11144 Pelicano Registration
at Noon Bowling starts at 12:30
4 man teams
$25.00 per person includes lunch and shoes
We need raffle prizes (gift cards etc.)
Lane sponsors Call 778-5387 Today Daddy-O!
Associates Council
Viva Las Vegas! Just a few days left before
we go to Vegas for our General meeting and a
lot of fun. Ray has something special lined up
for us for the meeting and I am sure everyone
will enjoy seeing this as it is something you
dont see every day. If you are missing this
trip make sure to get ready for the one next
year. Wed like to make this an annual event
as a good way to get away from everyday
routine into the world of glamour and fun.
Thank you to all of you who are making the
trip. By the time you read this we should be on
the way home with great memories and
hopefully a bag full of money.
Dont forget the Bowl a- Thon coming up
on July 19th ! Vicki Marcusse promises great
time will be had by all. Besides it will be hot
outside and the refreshments will be cool
inside. I cant wait to see if I can break a
hundred. It will be held at Bowl El PASO
located between Lomaland and Lee Trevino at
11144 Pelicano. Register by calling Angie at
the EPAB office 778-5387.
Correction on the tailgate party: it will be
held Thursday, September 29th starting
around 4:00 pm.
UTEP is playing Houston so it should be a
great game . Remember we have a very special
caterer for this event not to mention very cold
beverages. The weather will be great for this
event, I promise. Our good friend Mack
Rhodes is the AD at Houston and he promises
that the Cougars will bring it on. All I can say
is that our own UTEP Miners will be ready and
anxious to do battle. Our tailgate is a great time
for all. So dont forget, mark the date on your
calendar.
I dont want to waste all my energy on this
column as I need to go practice my Blackjack.
See you on Vegas!!!!!!
Builders Outlook
14JUNE 2011
Industry Reports
Sam Shallenberger
Western Wholesale
Supply
Land Use
BySal Masoud
I would like to take this opportunity to
express my disappointment with the lack of
participation on the part of our land use
members. I understand that the time we
contribute is voluntary and will take away
from your day to day activities. However, I
feel that Linda and I as chairs for this land use
council that we must continue to keep meeting
on regular basis in order to remain a unit that
can stand united against all the challenges we
face dealing with the changes the city is
imposing.
We have not been able to hold a meeting
since January due to lack of participation. I
thank our staff members at the El Paso
Association of Builders for their consistent
effort sending meeting notices requesting
RSVPs well ahead of the meeting time. We
were force to cancel meeting since we
received no confirmations for meeting
attendance.
Our next meeting will be held on June 22,
2011. I hope that we can count on our
members to register for attending the meeting
so we can get back on track.
FEMA flood maps update:
I would like to share with you the contents
of a press release issued courtesy of the City
of El Paso Engineering and Construction
Management Department. This press release
is good news for the El Paso community
which will allow builders and developers to
continue with their plans in the near future.
The additional time will also allow The
USIBWC to complete the levees project and
achieve full certification prior to the issuance
of new maps.
Press Release:
June 2, 2011-The public is advised that
effective May 24, 2011, the Federal
Emergency Management Agency (FEMA) has
officially placed the preliminary flood
insurance rate map project for El Paso County
on hold until further notice.
This temporary hold is necessary to allow
FEMA the opportunity to revisit the modeling
approach that was used to analyze
communities that are impacted by levees that
are not accredited.
Since the preliminary flood insurance rate
maps issued to the El Paso community on
June 18, 2010 may be impacted by this
modeling approach, the proposed maps will
NOT be finalized until a new approach is
completed by FEMA. A timeframe has not
been specified, however, FEMA officials have
indicated that they are working to create the
new modeling method as soon as possible.
During this timeframe, property owners can
continue to provide comments, or
protests/appeals (require scientific or
technical information) regarding the proposed
maps to the local floodplain administration
office.
To view the existing or proposed maps,
property owners can continue to visit the
Citys website www.elpasotexas.gov
under News & Notices, FEMA Flood
Zone Maps
Information may be submitted
electronically at
floodzones@elpasotexas.gov or mailed to
the following address:
Floodplain Administration
2 Civic Center Plaza-4th
El Paso, Texas 79901
541-4200
Individuals who reside outside city limits
must contact their respective Floodplain
Administrator (El Paso County, 546-
2015).
REALTOR/Builder
10 Tips for Saving Water in the
Garden
By: Laura Fisher Kaiser
1. Choose native plants
Native plants have had eons to adjust to the
areas normal rainfall, soil, and climate. Once
established, they require little or no watering.
2. Dont supersize plants
The bigger the plant, the more water it
might require. Before you buy research online
how tall and wide mature shrubs will grow.
Also, dont overcrowd plants: Follow label
planting instructions. Fewer plants require
less water. And flora that looks sparse at first
will fill the area in a few seasons.
3. Pile on the mulch
Mulching around plants is a great way to
reduce water loss and cuts down on water-
stealing weeds. Natural mulches include
compost, bark chips, and pine needles.
Organic mulches gradually break down and
add nutrients to the soil. Inorganic material,
such as landscaping paper, rocks, and pebbles,
are a more permanent option.
4. Make paths porous
Garden paths made of porous material
allow rainwater to seep into the ground and
nourish plant roots, not run off into the street.
Use gravel, pebbles, non-mortared concrete
pavers, or spaced bricks. To keep down
weeds, line the walk with landscaping paper
(or even newspaper) before you pile on the
porous material.
5. Lose the lawn
A green lawn is a suburban ideal that drinks
more than 20,000 gallons of water each year.
You can keep those cool blades under your feet
and save water by planting drought-resistant
varieties. (Like: Bermuda and buffalo grass)
Mow less often; and when you do, raise the
height of your mower blade to 3 inches.
6. Put thirsty plants together
To save water, group plants into watering
zones. Place the thirstiest plants near the
house where they can drink roof runoff.
Farther out, make a transition zone for
plants that need supplemental drip irrigation.
Farther still is a natural zone for native
plants that can survive on rainfall alone.
7. Plant and water when it's cool
New plants and transplants need far less
water if you put them in the ground in early
fall or early spring when its cooler. By
summer, theyll have established a deep,
healthy root system that needs less watering.
Water in the cool of the morning; where youll
lose less water to evaporation than in the heat
of the day. Resist watering at dusk; wet
foliage during the night encourages fungus
and mildew growth.
8. Do donuts
Trees and shrubs need extra water during
their first couple of years to help roots take
hold. An efficient way to keep roots moist is
to mound several inches of soil into a donut-
shaped berm. Make the berm the width of the
tree--including branches. Use a hose or bucket
to fill the donut dam to the top.
9. Follow the sun
Before you plant, get to know how--and
how long--the sun shines in your garden.
Determine patterns of shade and sun. Use dry-
soil plants in sunny areas, and use plants that
require more water in shady areas where
evaporation is slower.
10. Create the illusion of water
A good way to conserve water in the garden
is to capture rain water from your roof in a
rain barrel. During a moderate rainfall, a 25-
by-40-foot roof can shed 600 gallons per hour.
All youll need is a capture system (roof
gutters and downspouts), a storage system
(large-capacity barrels) and delivery system
(garden hose).
June Meeting: 6/10/11 from 12-2PM at the
Greater El Paso Association of
REALTORS.
Speaker will be Bella Homes. Their
Education Topic will be New City Building
Code Changes.
Angela Ochoa
GEPAR
Sal Masoud
Linda Troncoso
Balance sheet
and income
statement class at
EPAB
Frank Spencer of Aztec Construction
brought in his bookkeeper Kathryn
Schobner to give an overview on the basics
of financials and statements. The class
focused on why Understanding Your
Balance Sheet and Income Statement.
In the construction and contracting fields,
businesses are routinely asked to provide
financial statements to lenders, bonding and
insurance agents, tax reporting
agencies...and the list goes on. While the
Balance Sheet and Income Statement are
required for official purposes, they can also
be used on a regular basis by owners and
managers as an up-to-date snapshot of
financial standing.
This workshop was designed for non-
accounting people who want a basic
understanding of how to read a Balance
Sheet and Income Statement. They
examined how these statements are
produced and the importance of
maintaining accurate and timely records.
After this workshop, business owners and
managers should be able to properly
interpret and generally understand the
overall strength of their company's financial
position by looking at the Balance Sheet
and Income Statement.
EPABONTHESCENE
Introducing the all-new
Builder Book
e|pasobu||ders.com
BuiIders Services Sub Contractors
CompIete contact guide for every member of the
EI Paso Association of BuiIders
2011-2012

Why building a home in

El Paso is the intelligent
choice!
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