builders outlook 2012.4

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

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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

2 Builders Outlook 2012/4

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


El Paso Disposal

772-7495

Our business relationships become personal


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


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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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 |

2012/4

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



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


years

E L P A S O



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


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

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915-549-4533 or

915-478-2404

Bonded, insured foryour peace of mind.



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

*[email protected] •

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


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




Builders utlook