builders outlook 2012.4
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With the April 17 tax-filingdeadline just behind us, the mostimportant tax deduction for tens ofmillions of middle-class familiescould be on the chopping block asearly as next year’s tax season ifsome policymakers get their way.
“The mortgage interest deductionhas been in existence since theinception of the federal tax codenearly 100 years ago and is acornerstone of U.S. tax and housingpolicy,” said Barry Rutenberg,chairman of the National Associationof Home Builders (NAHB) and ahome builder from Gainesville, Fla.
“With many local housing marketsacross the nation just now showingsigns of a long-awaited spring thawfollowing the worst downturn indecades, protecting the mortgageinterest deduction and promoting taxpolicies that will keephomeownership affordable is very
important to create jobs and keepthe economy moving forward,” headded.
The deduction is broadly usedacross income groups andgeographic areas. Data from theJoint Committee on Taxationindicate that more than 33 millionfamilies benefitted from thededuction in 2010 and that thesehouseholds saved a collective $83billion on their tax bills.
Though the mortgage interestdeduction is the primary reason thattaxpayers become itemizers, criticshave unfairly attacked it as a taxloophole (despite the fact that morethan 33 million households claim it)and a subsidy to the rich.
Here are the facts. The mortgageinterest deduction primarily helpsmiddle class home owners and isconsistent with the principles of aprogressive income tax. Two-thirdsof the benefits flow to working classAmerican households who earn lessthan $200,000 annually and nearlyall those who own a home of theirown will claim the deduction atsome point during their tenure ashome owners.
NAHB research has shown thatas a share of household income, thededuction is most important foryounger home buyers, who typicallyhave less equity, tighter householdbudgets and are paying mostlydeductible interest and relativelylittle principal.
“The American people understandthat curtailing or getting rid of thededuction to help lower the federaldebt would result in a big tax hikeon millions of middle-class homeowners and that prospective buyers
who are counting on its benefits tolower their monthly mortgagepayments would remain on thesidelines,” said Rutenberg.
The collateral damage to theeconomy would be even moredevastating, resulting in lower homevalues, which would leave morehome owners underwater, triggermore foreclosures and prolong thehousing slump for years to come.
Changing the rules now would notonly take money out of the pocketsof those home buyers who rightfullycounted on the deduction beingthere when they needed it, but alsopenalize millions of baby boomersnearing retirement and seniors who
own their homes outright.Those looking to use the
proceeds from their home to moveinto a retirement community, helpdefray health care costs or to fundother long-term obligations may findthat declining home values willshrink their retirement nest egg andforce them to keep working and stayput because they can’t afford or areunable to sell their current home.
Yet, there are critics who stillsuggest that the mortgage interestdeduction should be weakened or
even abolished in order to raise taxrevenues for the federalgovernment, a minority view thatflies in the face of public opinion.
A New York Times/CBS News pollconducted last summer reveals thatnine out of 10 Americans opposeeliminating the mortgage interestdeduction and a nationwide surveyof likely voters commissioned byNAHB earlier this year shows that73 percent oppose abolishing thededuction.
Further, the NAHB poll found thatthree out of four voters believe it isappropriate and reasonable for thefederal government to provide taxincentives to promote
homeownership and 68 percentwould be less likely to vote for acongressional candidate whoproposed to eliminate the deduction,a sentiment that cut across partylines.
“Raising taxes on the nation’shome owners is clearly not the rightanswer to resolve our nation’s fiscalwoes,” said Rutenberg. “Such an ill-advised action would devaluehousing, lead to massive job lossesand derail the fledgling economicrecovery.”
Builders utlookyears
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2012/4
Americanssupport
interest taxdeduction
A New York Times/CBS News pollconducted last summer reveals thatnine out of 10 Americans opposeeliminating the mortgage interestdeduction and a nationwide survey oflikely voters commissioned by NAHBearlier this year shows that 73 percentoppose abolishing the deduction.
Spring Golf Tournament page 8
DIGITAL EDITION
The end of the first quarter shows
that El Paso has been tracking along
at about 200 new single family home
permits every month. At this rate the
permits would be at the annual level
we saw in 2010, not good for sure.
However with spring comes
enthusiasm for sales of homes on the
ground ready for move in. The word
on multifamily across the country also
shows a lack of confidence in the
economy but that segment could be
victim to the boom of permits issued
for apartments last year.
Unfortunately the recession which
was declared dead in 2009 is still with
us. Much of the lack of confidence
has to do with politics and it seems
like we will suffer through that until the
vote is cast in November. We all wish
we could just get it over with now, but
apparently there isn’t enough
momentum to do that. The high price
of gasoline continues to affect
everybody and that in turn affects all
kinds of sales. Gasoline we are told
will continue to cost more as we near
summer. Fuel surcharges on all sort
of items and services are now the
norm with the price increase of the
actual product now
taking backstage to gas surcharges.
The EPAB wants to thank all of the
participants of the Speed Networking
event. Well done and from what we
hear it was pretty well received on
both the builder and the associate
side. Great job all.
Weather is still on everyone’s mind
as we get hit with high winds and a lot
of sand. I’m learning not to take for
granted when we get good weather
because sooner than not it will
change and the afternoon will be ugly
and sandy. So enjoy it when you can!
My hat goes off to Mike Santamaria
and Greg Bowling for choosing to be
co-chairs for the Direct Drive
Membership Drive May 22-23. A lot
of work is going into this event and we
hope that you will take a moment to
join us in the fun effort.
Have a great start to the second
quarter. Go out and sell a bunch!
Frank
Arroyos
President,
El Paso Association
of Builders
President’s Message |
32012/4 Builders Outlook
Editorials are very personal and
for a business publication like
ours it really has to be business
oriented. As I looked at the blank
page I couldn’t help but bring up some
of the tragedy we experienced last
month to light. Why? Because I
believe that to some degree it has
roots in this roller coaster economy.
The tragedy was a suicide of one of
our past Presidents. That death has
evoked a host of feelings, emotions,
and thought. This tragedy struck
home in more ways than one. More
importantly it opened the discussion
on how the association, and for that
manner, all groups like ours can seek
out ways to help those going through
these tough times with support,
prayer, and a more.
First let me set the record straight:
our friend was a very special gift to us,
a smart, hardworking kind soul who
was a first class builder and
entrepreneur. His construction
company was built of the highest
standard with sweat and strength. No
one calls into question his ability, his
business acumen, or his unswerving
desire to be the best. He was a patriot
to the bone, a military veteran through
and through, a family man and he
loved the association. Those who met
him walked away knowing he was a
special human being with a unique
quality. All that and more is what
makes his passing even more difficult
to grasp.
Dying is just a part of the circle of
life, and as we grow older that reality
is just a heartbeat away. Death from
an accident or illness is almost
acceptable. Not so when life is cut
short by suicide. It would be easy to
blame the suicide to one thing, but as
the professionals tell us suicide has a
thousand faces and a thousand
reasons. The added pressure of
today’s economy certainly has many
blaming the economy but frankly we
would be looking at just a part of the
whole story. The reality is many things
are out of our own control now days
and in business more of that is part of
daily life. It is a difficult thing to
comprehend when someone takes
their life. In business we take our role
so personal that a failure can manifest
itself into feeling that there is no one
who cares. It really doesn’t matter
what the profession is, failing leaves
us devastated. Another business
associate told me after learning of this
tragedy that the sense of failure is
elevated when you have direct
competitors who appear to be glad
you failed if for no other reason than
you are no longer a competitor.
Tragically there are those who think
this way. As a God fearing community
that is exactly the opposite of what we
should act like. But human nature is
human nature and losing a competitor
to them for whatever reason is just
that, less competition. What a shame.
Free will is something that all of us
have and psychologist tells us that we
have little demons running around
inside us all the time. But there are
those who can control them better
than others. Some of us are wired
better than others for the rigors of
business and daily life. All of us in
business understand the risks. That’s
what makes losing someone
unexpectedly questions our very soul.
It leaves unanswered questions to the
family and friends who will search for
a reason each day. As an association
we have a responsibility to each other.
Our board is committed to offering a
hand to those who seek it, and to offer
prayer and support. We can’t afford to
have another member feel like they
don’t have another day. A tough
lesson but one that I believe we will
rise to the occasion for.
Perspective |
Ray Adauto,
Executive
Vice President
EPAB
4 Builders Outlook 2012/4
El Paso Disposal
772-7495
Our business relationships become personal
52012/4 Builders Outlook
The state comptroller issued apublic notice that a business taxamnesty will be in place from
June 12 through August 17, 2012.The amnesty is actually for penaltiesand interest that are levied fordelinquent taxes.
It sure sounds exciting that thestate can expect to collect tens ofmillions of dollars that businesses didnot pay as required by state law. I justwonder why it even exists.
Sure, there is a solid incentive topay the delinquent taxes. But whyare the taxes delinquent?
When you go to a business and paythem money, do you hold back onpaying the taxes? No, that does nothappen if you want the product.
You are given a receipt that showsthe items you bought, the cost foreach and then, in a separate entry,the tax that you had to pay. There isno mystery about how much the taxwas.
In the last such event, which iscalled Fresh Start, the comptrollerboasted that an incredible $100million dollars in delinquent taxes.Sales taxes that were collectedtotaled $47 million.
The question is why are these sales
taxes not being paid and why arescofflaws being rewarded by avoidingpenalties? As I wrote before, if asales tax is owed, it is because a lawabiding Texan paid it for services orproducts. There is no figuring apercentage of a payment at the end ofthe year, the tax is figured at themoment of sale.
There should be no amnesty forany business that fails to pay thesales taxes to the state. Thecomptroller should maintain therecord of a business that isdelinquent. There should beelevating penalties for those who arerepeat offenders.
The $47 million the comptrollercollected in 2007 stayed in theaccounts of those businesses earninginterest. Those businessesbenefitted by not paying the taxestimely; and then the comptrollercompounded that by not assessingpenalties.
I wish the state government wasthat easy on all of us. Have you everbeen ticketed for an expired licenseor inspection sticker a year later andhad your fines waived? Of coursenot.
The comptroller's office usesrevenues from interest and penalty tofinance a portion of its budget. Bygranting the amnesty, the comptrolleris essentially adding to the budgetshortfalls. Even if it is a very smallamount, the amnesty causes money
to be diverted from other programs inorder to cover the shortfall. That isirresponsible action by the electedofficial in charge of our revenuecollection.
The 2007 amnesty also collected$46 million in franchise taxes thatwere delinquent. I can't blamebusinesses on that one. Theconservative leadership created sucha confusing method of figuring abusiness's tax liability when the lawwas passed creating it.
You may recall the franchise taxwas created to fill in the shortfall whenschool property tax rates werereduced by 1/3. That tax has nevergenerated the projected revenues forour schools. The deficit has lingeredaround a $2 billion level.
That reason should be enough tobe stricter on penalizing delinquentbusinesses instead of grantingamnesties.
Perspective |
ChenteQuintanillaState
Representative
Tax amnesty not fair to law abiding Texans
6 Builders Outlook 2012/4
The El PasoAssociation ofBuilders wasshocked by thenews that PastPresident andcustom homebuilder Del Huit haddied on March 14.
Del had been an integral member ofthe association for decades and hadheld several offices during that time.He had fought in Vietnam as a U. S.Marine. The loss for the associationwill be felt for a long time. Hisachievements are many but his abilityto calmly resolve heated issues andtake on tough jobs for the associationare his earmark.
Delbert “Del” Blaine Huit passedaway on March 14, 2012. He was bornon September, 16, 1954 in Boise Idaho.He is survived by his wife Lorraine Huit,Son Jacob and Daughter Laureta.Brothers, Lloyd Paul, Kenny Paul, TonyPaul, Richard Paul and Sister DeniseDavis. He was preceded in death by hismother Marie Paul. He enlisted in theUSMC in 1971 and achieved anHonorable Discharge in 1977. His Lovefor Country was exemplified with hissupport of conservative views of local,U.S. and World Politics. Del graduatedwith an Associates Degree from EPCC
& Business Degree from UTEP. Delowned Cardel Construction Inc., wherehe was a Builder and a Remodeler for32 years of which he built hundreds ofnew custom homes in the El Pasoarea. He started and owned CardelRealty from 1994 - 2010 with supportfrom Broker Ellen Speight’s. He wasnamed “Builder of the Year” in 1993and 2003. He served as President in1993 and sat on the Board of the ElPaso Association from 1999 - 2012. Delwas a simple man but a generousperson. He participated for many yearsin “Christmas in April” rebuilding homesfor the needy Senior Citizens andmonetarily supported Candlelighters ofEl Paso for many years. He recentlytaught himself and learned financialinvestments which he truly loved. Heenjoyed the years he learned to Golfwith his son and daughter and in hisyounger year's weekend camping andfishing. Recently he enjoyed outdoor offroad desert jeeping with his good friendJohn Karlsruher. He met a lot of peoplein his life and most recently his newfriends and family from his supportgroup taught him to live and enjoy life“one day at a time.” Visitation was heldon Monday, March 19, 2012 SunsetFuneral Home West with a “Celebrationof Life” service.
Past President Del Huit dead at 57
The highest price for a gallon ofgasoline in El Paso has hit historiclevels. Now averaging over $3.78 agallon for regular the effect of the priceis starting to inch into serious problemfor businesses including homeconstruction.
“I have never had to pay so much fora tank of gas and frankly we don’tknow how high it might go,” saidEdmundo Dena of Accent Homes in ElPaso. It’s a common cry heard eachtime you visit the pump and see thefrustration on the faces of those fillingup. While the problem of high gasolineprices has long been foretold it wasn’tuntil recently that they actuallyhovered at over $3 a gallon.Unfortunately rising gasoline costsaffect day to day decisions. Nowthings are starting to get ugly withfinger pointing and little action toresolve a serious economiccatastrophe.
On March 29 President Obama helda news conference placing blame forhigh gasoline prices on the oilcompanies, claiming that the industry
is charging more while getting backfederal tax credits that the Presidentcalled unfair. In a heated response theoil companies shot back with the factsthat during this Presidents termgasoline prices have nearly doubled;exploration of U S oil and gas reserveshas not been approved; and that theKeystone Pipeline project has beendelayed by the President.
“Despite a large drop in wholesaleprices earlier this month, so far wehaven’t seen a corresponding bigdecline at the pump,” says JeffreySpring, a spokesman for theAutomobile Club of SouthernCalifornia as quoted in USA Today. AChevron station near the StaplesCenter in downtown Los Angeles is stilldemanding the state’s highest price fora gallon of gas -- $5.99. It’s at least thethird week that the price has beenposted, according to GasBuddyaccording to USA Today.
David Fenigan of CarpetWarehouse in El Paso said he wasshocked after a recent trip to LosAngeles with the price of gasoline. “Ican tell you firsthand that the rental carcompany said it would be best if I filledthe car back up before returning itsince they would charge me $6.87 agallon,” David said. “I thought ok, soit’s cheaper and I’ll save some money.Imagine my shock to see that gasolinein the heart of L. A. was over $5.70 agallon!” In addition Fenigan, amember of the El Paso Association ofBuilders, said that his costs for flooringare going through the roof. “Ourproducts are trucked in from Georgiaand each yard of carpet is going up inprice due directly to the fuel chargeson the delivery,” he said. Asked abouthis retail business Fenigan lamentedthat sales are being hurt as consumershave to search for ways to adjust andmay be putting off buying because ofit.
While consumers get hot when theysee these prices businesses likehomebuilders and their suppliers don’thave a choice. “How do you expect meto do my work without my truck?”asked Rudy Guel, remodeler from ElPaso. “I have to carry ladders,materials and workers in order to earna living, and frankly I have to adjust mycosts to reflect gasoline prices,” hecontinued. It is not only the front linecontractors who are feeling the gaspinch but also suppliers. Ken Wadewith El Paso Building Materials saidthe situation is getting critical. “Wehave been hit with fuel surcharges onthe products from our vendors, andfrankly, we’ve been absorbing that asmuch as we can,” Wade told us. “Ourbusiness is super competitive and wecan’t afford to lose any of mycustomers because we passed alongthe charge. At least for now we haven’tand I hope there is relief on this,” Kencontinued.
The tough economic downturn thatthe housing industry has suffered can’tbe helped by increases in consumercosts. The President’s own Energysecretary said we need to quote "boostthe price of gasoline to the levels inEurope." That's $9 a gallon accordingto an oil industry group. IronicallyEnergy Secretary Steven Chu intestimony in front of Congressadmitted that he currently doesn’t owna car.
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72012/4 Builders Outlook
Gasoline pricescontinue historic
rise, Economy notin sync
by Ray Adauto
spring golftournament
The El Paso Association ofBuilders held the annual springgolf tournament at PaintedDunes Desert Golf CourseApril 10. 34 teams broke out atthe noon shotgun and were offand running for the next fivehours. Originally the tourna-ment was to be held on all 27holes at Painted Dunes but anerror by the front desk allowedthe public onto the northcourse that morning andcaused a slight backup for theteams in the event. Golf chairJohn Chaney had the dubioustask of assigning the teams tothe East and West coursesmaking each tee box an A andB tee location. Par was thefriend of the golfers and all theplayers were told to pick up atpar. In spite of the somewhatcrowded field everyoneenjoyed the beautiful blueskies and mild breeze. Itcouldn't have been better dayweather wise but more thanone golfer suffered sun burn. Aspecial thanks goes to thecompanies who bought teamsslots and to the advertiserswho took tee boxes, the prac-tice range, and drink carts withtheir special presentations.Bruce Meyer of JDW continuedhis long tradition of handing out$2 bills for any golfer whomade contact with the ball on asecond shot on a Par 4 hole.Kathy Parry from Hunt contin-ued her tradition of being oneof the most sought after bever-age carts. Our special guestsincluded some special atten-tion from the ladies ofChristina's Productions. Greatprizes were given out after theplay including prizes for 1st,2nd and 3rd place. The StewartTitle team led by DebbieFigueroa won the event with anastonishing 57. Thanks toMargaret Adauto for all thework getting everyone signedup and collecting the fees andto Alice Duran from Lone StarTitle for helping Margaret withthe goody bags.
View more photos on our facebook page: elpasobuildersassociation
Builders utlook on the scene |
Builder confidence in the market for newly
built, single-family homes declined for the first
time in seven months this April, sliding three
notches to 25 on the National Association of
Home Builders/Wells Fargo Housing Market
Index, released today. The decline brings the
index back to where it was in January, which was
the highest level since 2007.
“Although builders in many markets are noting
increased interest among potential buyers,
consumers are still very hesitant to go forward
with a purchase, and our members are realigning
their expectations somewhat until they see more
actual signed sales contracts,” noted Barry
Rutenberg, chairman of the National Association
of Home Builders (NAHB) and a home builder
from Gainesville, Fla.
“What we’re seeing is essentially a pause in
what had been a fairly rapid build-up in builder
confidence that started last September,” said
NAHB Chief Economist David Crowe. “This is
partly because interest expressed by buyers in the
past few months has yet to translate into expected
sales activity, but is also reflective of the ongoing
challenges that are slowing the housing recovery
– particularly tight credit conditions for builders
and buyers, competition from foreclosures and
problems with obtaining accurate appraisals.”
Derived from a monthly survey that NAHB
has been conducting for 25 years, the
NAHB/Wells Fargo Housing Market Index
gauges builder perceptions of current single-
family home sales and sales expectations for the
next six months as “good,” “fair” or “poor.” The
survey also asks builders to rate traffic of
prospective buyers as “high to very high,”
“average” or “low to very low.” Scores from each
component are then used to calculate a seasonally
adjusted index where any number over 50
indicates that more builders view conditions as
good than poor.
Each of the index’s components registered
declines in April. The component gauging current
sales conditions and the component gauging sales
expectations in the next six months each fell three
points, to 26 and 32, respectively, while the
component gauging traffic of prospective buyers
fell four points to 18. (Note, the overall index and
each of its components are seasonally adjusted.)
Regionally, the HMI results were somewhat
mixed in April, with the Northeast posting a four-
point gain to 29 (its highest level since May of
2010), the West posting no change at 32, the
South posting a three-point decline to 24 and the
Midwest posting an eight-point decline to 23.
Builder Confidence
Slips Three Notches
Single-family housing production held
virtually unchanged in March as a double-digit
decline in the more volatile multifamily sector
brought combined nationwide starts activity
down 5.8 percent to a seasonally adjusted annual
rate of 654,000 units, according to data released
by the U.S. Commerce Department today. In El
Paso the El Paso Association of Builders has
recorded 608 single family unit permits issued in
El Paso city so far this year, while Horizon has 30
permits total for the year.
“While more consumers appear to be seriously
considering a new-home purchase, builders
remain very cautious about starting new projects
until they see more actual sales materializing,”
said Barry Rutenberg, chairman of the National
Association of Home Builders (NAHB) and a
home builder from Gainesville, Fla. “At the same
time, in places where buyers are ready to go
forward with a purchase, access to credit for both
builders and buyers and difficulties in obtaining
accurate appraisals are persistent challenges that
continue to slow that process considerably.”
“While combined U.S. housing starts lost some
ground in March, this was almost entirely due to
typical month-to-month volatility on the
multifamily side,” said NAHB Chief Economist
David Crowe. “The fact is that single-family and
multifamily starts and permits were all stronger in
the first quarter of 2012 than they were in the
fourth quarter of 2011, indicating that the market
continues to slowly strengthen, albeit in fits and
starts.”
The 5.8 percent decline in overall housing
starts in March was mostly due to a 16.9 percent
decline on the multifamily side, which brought
that sector’s annual production pace to 192,000
units, seasonally adjusted. Meanwhile, single-
family starts held virtually flat for the month with
a 0.2 percent decline to 462,000 units.
Housing Starts Virtually
Unchanged in March
10 Builders Outlook 2012/4
112012/4 Builders Outlook
Approximately seven years ago
then President Randy Bowling with
Ray Adauto from the EPAB and Alan
Shubert and Pat Adauto from the City
of El Paso undertook a seven city five
day tour across Texas, New Mexico
and Nevada to investigate third party
inspections and one stop commercial
stops for permits and inspections. At
the time the City was not allowing
third party inspections and plan
review and it was felt by the industry
that this would need to change. It
was the contractors who understood
that City services would be stressed if
the much talked about Fort Bliss
BRAC actually came to pass and
therefore undertook this firsthand
look. Not surprisingly the results of
that trip along with recommendations
from the City Manager’s office
opened up third party inspections and
plan review to private companies. In
the beginning three companies vied
for the work from local home builders,
and as of today only one of the
original three is still practicing in El
Paso, Vision Consultants. Fast
forward through the build out and
through the recession the need for
the third party companies has grown,
especially considering that these
companies have been held back from
doing commercial work. The
conceptual design of a one-stop shop
for El Paso has been a work in
progress but overall third party has
done a good job in El Paso.
Recently the City of El Paso
decided to revamp the contract for
third party inspectors and issued new
guidelines on how they would do
business in El Paso. Three Core
Services provided under this new
solicitation:
• Direct Services to the City – This
is a new provision in the contract
that will allow for a contractual
relationship between the City, as
the primary client, and the Third
Party providers, for a complete
plan review and building
inspections. This will be valuable
tool to assist the City during
periods when a significant backlog
of plan reviews negatively impacts
the City’s ability to meet the five
day turnaround period to produce
building permits.
• Indirect Services to the City –
Allows for Third Party Providers,
acting as an agent for the City, to
contract with local Builders to
provide either Limited Plan
Review, or include Zoning Review,
Land Development Review, and
Building Inspections services. This
is the traditional model for Third
Party services that was re-written
to include a more descriptive
explanation of the key
requirements of plan review.
• Supplemental Services to the City
– A new provision that will allow the
City to contract with the Third Party
providers to perform services such
as swimming pool inspections, solar
panel inspections, and other minor
inspections on demand.
The five companies certified are Five
Submittals: Bureau Veritas, ECM
International, The Institute for
Building Technology and Safety
(IBTS), Vision Consultants and Code
Compliance Inspections.
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City certifies five ‘third party’ companies
Alan Shubert, representative for the City of El Paso
hosted a meeting for builders at the association offices in
order to help builders understand the new third party
agreements.
A look back...Moments in our 65 year history
A Look Back is a monthly feature of the ElPaso Association of Builders publication
the Builders Outlook. Look for morehistory of the El Paso Association of
Builders in coming editions.
& a look forward!
New Look for Outlook
For decades the Builders Outlook has been the official publication of the ElPaso Association of Builders. At first the ‘Outlook’ was simply the associationnewsletter that resembled nothing more than a church bulletin. In 2004, TedEscobedo, owner of Snappy Publishing and EVP, Ray Adauto collaborated tore-imagine the Builders Outlook and convert the publication into aprofessional news and advertising medium. Over the years, the Builders
Outlook has indeed evolved into one of the most respected BuildersAssociation publications in the state.
The Builders Outlook continues to evolve with this very issue.
Readers and EPAB members will find that with this issue, we are launching anew look, a new format and a new means of distribution.
“In an effort to better serve our industry and our membership, we haveconverted to more ‘earth friendly’ paper and will now deliver each issue intoour subscribers e-mail in-box instead of their mail box” said publisher, TedEscobedo. “This not only saves on costs and resources, it allows us to deliverthe issue in a more timely manner to the industry professionals that rely onthe information we are providing.”
In addition, the Builders Outlook will still be available in newsstands and retaillocations city-wide.
“This is a great evolution for the newspaper; one that I am proud to be a partof,” said Escobedo
12 Builders Outlook 2012/4
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
The EPAB has a new website upand running! Visitors to the newlydesigned website are now able toget information on the associationand its members through easy toread and even easier links. Thework on the website was done byour own EO Ray Adauto. "I cantell you that this website isdifferent than any of the otherassociation sites I visited in that Itried to give the visitor dynamic
links, easy to understandinformation and opportunities togather important information," Raytold the Outlook. The beta testingtook about two weeks as Raytweaked the site with colors, links,fonts and components he thoughtwould make a visitor comfortablereading it. The result after thattest is a site that is easy on theeyes and with good currentinformation. "I tried to find a way to
make it easy on me to keep thesite updated and so far so good.This site has to meet two distinctvisitors, the consumer and themember, and I think we have thatnow," he continued. The siteallows for banner advertising thatcan be rented on a monthly, halfyear or yearly rate. Forinformation on ads contactMargaret or Ray at the office, 915-778-5387.
EPAB Launches
new website
www.elpasobuilders.comwww.epbuilders.org
MAY 1
MEMBERSHIP DRIVE CAPTAINS
MEETING
3:30 PM
EPAB OFFICE
MAY 15
RENEGADE TRAINING
8:30 – 1:00
EPAB OFFICE
MAY 22 -23
MEMBERSHIP DRIVE
EPAB OFFICE
JUNE 13
BOARD MEETING 11:00
GENERAL MEETING
12:00 NOON
EL PASO CLUB
CHASE BANK BLDG. (DOWNTOWN)
Membership News
SODA SPONSOR
Thanks to our APRIL
SODA SPONSOR:Alon Brands
CONGRATULATIONS & CONDOLENCES
Congratulations to WestStar Bank, the new name for Bank of the West. After significant growth in the marketplace and the ever presence of the California based Bankof the West the local bank decided that it was time to get a new identity. Some months ago the commercials started using WestStar holding company making the transitionto the new name more apparent. The good news is that WestStar Bank continues to be local and with the new name allows it to expand into communities that are servicedby the California banks namesake. Congratulations from all of us at EPAB.
Pioneer Bank is growing! Actually the bank, headquartered in Roswell, purchased the assets of Washington Federal Bank in El Paso. So where there was one branch ofPioneer here now they’ll be three. Washington Federal on the east side and on west side will begin transformation to Pioneer Bank. With the acquisition Pioneer will serv-ice two of the El Paso’s areas that will benefit from the personal touch Pioneer offers. Congratulations to Pioneer Bank.
Condolences to the Lowenfield family and our members at Casa Ford, Casa Nissan on the loss of patriarch Wallace “Wally” Lowenfield. Mr. Lowenfield died Sunday,March 25 after a long battle with cancer.
Condolences to the Velasquez and Adauto families on the loss of Jenny Velasquez, Hunt Corporation’s Belinda Velasquez mother in law and Ray’s aunt. Aunt Jennypassed on Sunday, March 25 after a prolonged battle with the effects of Alzheimer’s.
RENEWALSBIC HOMES
CROWN HERITAGE HOMES
CUSTOM AV, LLC.
D. R. HORTON HOMES
EL PASO COMMUNITY COLLEGE
JKS HOMES
LAKE SECTION WATER COMPANY
LOWE’S HOME
IMPROVEMENT
NEW MEMBERSC. D. Lee/Britton
Insurance & BondingContact:
Anthony Landavazo2244 Trawood,
Suite 208El Paso, Tx 79935
915-595-3393
First American BankContact:
Louis Sauceda5505 N. Mesa St.,
Suite. 2El Paso, Tx 79912
575-647-1804
First Choice RealtyContact:
Rick Snow723 Agua Caliente Dr.
El Paso, Tx 79912915-329-5868
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
Jaime’sCourier
Service,Inc.
Jaime’sCourier
Service,Inc.
915-549-4533 or
915-478-2404
Bonded, insured foryour peace of mind.
132012/4 Builders Outlook
www.elpasobuilders.com www.epbuilders.org
UPCOMING EVENTS |
No doubt you’ve heard the buzz about
consumer-driven health plans (CDHPs),
which seek to control employers’
healthcare costs by giving consumers “skin
in the game.” With the cost of providing
dental benefits increasing, can consumer-
driven dental plans be far behind?
More than medical plans, dental plan
enrollment tends to go up and down with
economic conditions, probably because
dental plans are more likely than medical
plans to be partially or fully employee-paid.
There is good news, however—in 2010,
the number of people enrolled in dental
plans increased 4.5 percent, after dropping
in both 2008 and 2009, reported the
National Association of Dental Plans
(NADP). 2011 figures were not available at
publication time.
Today, most employers that offer dental
benefits offer standalone plans. The
NADP’s 2011 survey found that 98 percent
of dental benefits are provided under a
separate policy, and PPO plans represent
74 percent of all group dental plans.
Although PPO plans aim to control
expenses by providing higher
reimbursements for care given by network
providers, costs are still increasing faster
than the general rateof inflation. To control
the costs of an insured dental plan,
employers have a couple of options:
1. Switch to a lower-cost plan. Options
include decreasing the annual maximum;
limiting benefits, such as covering
preventive and basic care only; decreasing
annual maximum benefits; and switching to
a plan that pays benefits according to a
schedule, rather than a percentage of
“reasonable and customary” charges.
Negatives:
Employees will likely see this as a
takeaway; some might not understand the
changes in their dental benefit plan until
they get a higher-than-expected bill for
dental services; and lower (or no)
reimbursements for costly services such as
root canals and periodontal (gum)
treatments might dissuade employees who
need these treatments from getting them.
2. Maintain your level of coverage but
have employees shoulder a larger
portion of costs. Options include
increasing employees’ share of premiums,
increasing copayment percentages and
switchingto an entirely employee-paid
(voluntary) plan.
Negatives:
Cost increases could prompt some
employees to drop coverage, bringing your
group below the insurer’s participation
requirements. Most employer-paid fully
insured dental plans require a minimum of
75 percent of eligible employees to
participate. Voluntary plans typically have
much lower participation requirements, as
low as 25 percent of eligible employees.
Direct Reimbursement Plans
A direct reimbursement (DR) plan gives
employers greater control over their dental
benefit program than an insured plan. With
a direct reimbursement plan, the employer
determines how much it will spend per
employee per year. Employees can go to
any dentist they choose and pay their bills.
They then submit the expense for
reimbursement, which they receive free of
income taxes for dental expenses that
meet the IRS definition of a qualified
medical expense. (This generally excludes
any treatments made for purely cosmetic
reasons.) Unlike insured plans, whose
rates depend on the claims experience of a
group or pooled groups, the employer
determines the cost of a DR plan.
Employers set a maximum annual benefit
for participating individuals at whatever
level they choose often $1,500 or $2,000.
They can also tier reimbursement levels—
for example, paying 100 percent of the first
$100 in expenses and 80 percent of the
next $1,750, until reimbursements reach
the maximum annual benefit of $1,500.
Employers can choose what types of
treatments the plan will cover and whether
to cover dependents. DR plans give
employees greater control over their dental
treatment choices, since DR plans allow
them to see any dentist and use their funds
for any eligible treatment. DR plans also
give employers greater control over cash
flow—rather than paying premiums to an
insurer, the employer can invest plan funds
and withdraw them as needed for
reimbursements. And about 90 percent or
more of your costs will go directly to
employees’ dental care, according to the
American Dental Association.
Negatives:
Direct reimbursement dental plans
require more administration than an
insured plan. Someone must educate
employees, verify the validity of claims,
make reimbursements and track account
balances. A benefits expert can help you
evaluate whether this is something you can
do in-house or whether your firm would
benefit from outsourcing this function. For
more information on selecting thebest
dental plan for your organization, please
contact us.
Joe Bernal is a member of the El Paso Association
of Builders and presents this information in his
newsletter Employee Benefits Report. Employee
Benefits of El Paso, DBA Joe Bernal Insurance and
Financial Services, Inc., 6414 Gateway East • El Paso,
TX 79905-2007, (915) 542-0900
*joe@employeebenefitsep.com •
http://www.joebernalinsurance.com The information
presented and conclusions within are based upon our
best judgment and analysis. It is not guaranteed
information and does not necessarily reflect all
available data.
Showroom: 2131 Missouri
915 • 533 • 6045 fax • 533• 6096
Thomas R. Brown, Owner
14 Builders Outlook 2012/4
Joe BernalEmployee Benefits of El Paso
Expert AdviceNext Trend: Consumer-Driven Dental?
� 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, Johnson
& 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, Bank of the West
Linda Troncoso, TRE & Associates
Ken Wade, El Paso Building Materials
Adam Winkler, MTI Ready Mix
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
� 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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