builders outlook 2014 issue 8

16
Anjli Raval Financial Times The income gap between America's richest and poorest metropolitan regions has reached its widest on record, shaping an uneven housing recovery that threatens to hold back the broader revival of the world's largest economy. The gap has narrowed and widened in past cycles, but the rebound from the most recent financial crisis has seen the ratio hit its most unequal since data collection began 45 years ago, fueling policy makers' concerns. Read MoreBuying a new home? What a difference $1,000 makes U.S. Commerce and Labor Department data for the 100 largest metropolitan areas by population, analyzed for the Financial Times by property website Trulia, found the income disparity between the 10th most expensive region and the 90th by home prices in 2013 hit its widest since records began in 1969. The research shows Boston – ranked at 10 – reporting a per-capita income 1.61 times that of Cincinnati ranked at 90. At its low point in 1976, the gap was 1.36 times, between San Francisco and El Paso. A patchy labor market recovery has meant significant variations in job and income growth between regions across the U.S., which in turn has intensified the divergences across the country's housing markets. "Housing markets are playing out at very different speeds partly as a result of the lack of geographical breadth in the labor market. Certain sectors of the economy are performing better than others, propelling some housing markets over others," said Fannie Mae economist Mark Palim. While some areas are experiencing bubble-like conditions, others are flailing. In Austin, Texas, a surge in technology jobs has driven demand. But in Akron, Ohio, which is struggling to boost employment through a new manufacturing base, house purchases have been more muted. In the government town of Sacramento, California, anxious homebuyers are waiting on the sidelines after being priced out by investors. Stanley Fischer, Janet Yellen's deputy chairman at the Federal Reserve, highlighted the central bank's concern about housing in a speech this week. "The housing sector was at the epicenter of the U.S. financial crisis and recession and it continues to weigh on the recovery," he said. In contrast to previous recoveries, he noted "residential construction [has been] held back by a large inventory of foreclosed and distressed properties and by tight credit conditions for construction loans and mortgages." How cities fared through the boom and bust, and the extent of state and local government control over foreclosures, have dictated housing market performance. But job and income growth are playing an outsized role, Mr Palim added, particularly as mortgage interest rate rises and home price increases affect affordability. The number of Americans in work has surpassed the pre-recession peak. But there has been little lower and middle wage growth, constraining demand for houses across much of the country. The rebound in construction, led by apartments, has been concentrated in pockets of the country where incomes are among the greatest. Six of Trulia's 10 highest-income areas – including San Jose, Boston and New York – also had the strongest residential construction performance by permits in 2013 compared with past norms. Economists see construction activity as a better gauge of an improving housing market than prices, which have been skewed by an influx of investor buyers since 2012. Builders utlook www.elpasobuilders.com 2014: issue 8 Nationwide housing affordability dipped in the second quarter of 2014 as several markets saw a firming of home prices, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), released today. In all, 62.6 percent of new and existing homes sold between the beginning of April and the end of June were affordable to families earning the U.S. median income of $63,900. This is down from the 65.5 percent of homes sold that were affordable to median-income earners in the first quarter. The national median home price increased from $195,000 in the first quarter to $214,000 in the second quarter. Meanwhile, average mortgage interest rates decreased from 4.57 percent to 4.44 percent in the same period. “With interest rates near historically low levels and strengthening job growth, now continues to be a great opportunity to buy a home,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. “The second quarter HOI reflects the slow but steady march toward the historic levels of price appreciation and interest rates that result in affordability levels we experienced before the mid- 2000s boom,” said NAHB Chief Economist David Crowe. “While we are seeing a slight decrease in affordability, it is still fairly high by historical standards.” Youngstown-Warren-Boardman, Ohio-Pa. claimed the title of the nation’s most affordable major housing market, as 90.4 percent of all new and existing homes sold in this year’s second quarter were affordable to families earning the area’s median income of $52,700. Meanwhile, Cumberland, Md.-W.Va. was the most affordable smaller market, with 97.2 percent of homes sold in the second quarter being affordable to those earning the median income of $54,100. Other major U.S. housing markets at the top of the affordability chart in the second quarter included Indianapolis- Carmel, Ind.; Syracuse, N.Y.; Harrisburg-Carlisle, Pa.; and Scranton- Wilkes-Barre, Pa; in descending order. Meanwhile, smaller markets joining Cumberland at the top of the affordability chart included Kokomo, Ind.; Davenport-Moline-Rock Island, Iowa-Ill.; Battle Creek, Mich.; and Lima, Ohio; in descending order. For a seventh consecutive quarter, San Francisco-San Mateo-Redwood City, Calif. was the nation’s least affordable major housing market. There, just 11.1 percent of homes sold in the second quarter were affordable to families earning the area’s median income of $100,400. Other major metros at the bottom of the affordability chart were Santa Ana- Anaheim-Irvine, Calif.; Los Angeles- Long Beach-Glendale, Calif.; San Jose-Sunnyvale-Santa Clara, Calif.; and New York-White Plains-Wayne, N.Y.-N.J.; in descending order. All five least affordable small housing markets were in California. At the very bottom was Santa Cruz-Watsonville, where 16.6 percent of all new and existing homes sold were affordable to families earning the area’s median income of $77,900. Other small markets included Napa, Salinas, Santa Rosa-Petaluma, and San Luis Obispo- Paso Robles; in descending order. -NAHB Increasing Home Values Affect Housing Affordability Record income gap fuels US housing weakness IS YOUR TEAM READY? IS YOUR TEAM READY? Pro Am Golf Tournament November 5, 2014 Call 778-5387

Upload: tedescobedo

Post on 20-Jul-2016

121 views

Category:

Documents


1 download

DESCRIPTION

The official publication of the El Paso Association of Builders

TRANSCRIPT

Page 1: Builders Outlook 2014 Issue 8

Anjli Raval Financial Times

The income gap between America'srichest and poorest metropolitanregions has reached its widest onrecord, shaping an uneven housingrecovery that threatens to hold backthe broader revival of the world'slargest economy.

The gap has narrowed and widenedin past cycles, but the rebound fromthe most recent financial crisis hasseen the ratio hit its most unequalsince data collection began 45 yearsago, fueling policy makers' concerns.

Read MoreBuying a new home?What a difference $1,000 makes

U.S. Commerce and Labor

Department data for the 100 largestmetropolitan areas by population,analyzed for the Financial Times byproperty website Trulia, found theincome disparity between the 10thmost expensive region and the 90th byhome prices in 2013 hit its widestsince records began in 1969.

The research shows Boston –ranked at 10 – reporting a per-capitaincome 1.61 times that of Cincinnatiranked at 90. At its low point in 1976,the gap was 1.36 times, between SanFrancisco and El Paso.

A patchy labor market recovery hasmeant significant variations in job andincome growth between regions acrossthe U.S., which in turn has intensifiedthe divergences across the country'shousing markets.

"Housing markets are playing out atvery different speeds partly as a resultof the lack of geographical breadth inthe labor market. Certain sectors of theeconomy are performing better thanothers, propelling some housingmarkets over others," said Fannie Maeeconomist Mark Palim.

While some areas are experiencing

bubble-like conditions, others areflailing. In Austin, Texas, a surge intechnology jobs has driven demand.But in Akron, Ohio, which is strugglingto boost employment through a newmanufacturing base, house purchaseshave been more muted. In thegovernment town of Sacramento,California, anxious homebuyers arewaiting on the sidelines after beingpriced out by investors.

Stanley Fischer, Janet Yellen'sdeputy chairman at the FederalReserve, highlighted the central bank'sconcern about housing in a speechthis week. "The housing sector was atthe epicenter of the U.S. financial crisisand recession and it continues toweigh on the recovery," he said.

In contrast to previous recoveries, henoted "residential construction [hasbeen] held back by a large inventory offoreclosed and distressed propertiesand by tight credit conditions forconstruction loans and mortgages."

How cities fared through the boomand bust, and the extent of state andlocal government control overforeclosures, have dictated housing

market performance. But job and income growth are

playing an outsized role, Mr Palimadded, particularly as mortgageinterest rate rises and home priceincreases affect affordability.

The number of Americans in workhas surpassed the pre-recession peak.But there has been little lower andmiddle wage growth, constrainingdemand for houses across much of thecountry.

The rebound in construction, led byapartments, has been concentrated inpockets of the country where incomesare among the greatest. Six of Trulia's10 highest-income areas – includingSan Jose, Boston and New York – alsohad the strongest residentialconstruction performance by permits in2013 compared with past norms.

Economists see construction activityas a better gauge of an improvinghousing market than prices, whichhave been skewed by an influx ofinvestor buyers since 2012.

Builders utlookwww.elpasobuilders.com 2014: issue 8

Nationwide housing affordabilitydipped in the second quarter of 2014as several markets saw a firming ofhome prices, according to the NationalAssociation of Home Builders/WellsFargo Housing Opportunity Index(HOI), released today.

In all, 62.6 percent of new andexisting homes sold between thebeginning of April and the end of Junewere affordable to families earning theU.S. median income of $63,900. Thisis down from the 65.5 percent ofhomes sold that were affordable tomedian-income earners in the firstquarter.

The national median home priceincreased from $195,000 in the firstquarter to $214,000 in the secondquarter. Meanwhile, average mortgageinterest rates decreased from 4.57percent to 4.44 percent in the sameperiod.

“With interest rates near historicallylow levels and strengthening jobgrowth, now continues to be a greatopportunity to buy a home,” saidNAHB Chairman Kevin Kelly, a homebuilder and developer fromWilmington, Del.

“The second quarter HOI reflects theslow but steady march toward thehistoric levels of price appreciation and

interest rates that result in affordabilitylevels we experienced before the mid-2000s boom,” said NAHB ChiefEconomist David Crowe. “While we areseeing a slight decrease inaffordability, it is still fairly high byhistorical standards.”

Youngstown-Warren-Boardman,Ohio-Pa. claimed the title of thenation’s most affordable major housingmarket, as 90.4 percent of all new andexisting homes sold in this year’ssecond quarter were affordable tofamilies earning the area’s medianincome of $52,700. Meanwhile,Cumberland, Md.-W.Va. was the mostaffordable smaller market, with 97.2percent of homes sold in the secondquarter being affordable to thoseearning the median income of $54,100.

Other major U.S. housing markets atthe top of the affordability chart in thesecond quarter included Indianapolis-Carmel, Ind.; Syracuse, N.Y.;Harrisburg-Carlisle, Pa.; and Scranton-Wilkes-Barre, Pa; in descending order.

Meanwhile, smaller markets joiningCumberland at the top of theaffordability chart included Kokomo,Ind.; Davenport-Moline-Rock Island,Iowa-Ill.; Battle Creek, Mich.; andLima, Ohio; in descending order.

For a seventh consecutive quarter,

San Francisco-San Mateo-RedwoodCity, Calif. was the nation’s leastaffordable major housing market.There, just 11.1 percent of homes soldin the second quarter were affordableto families earning the area’s medianincome of $100,400.

Other major metros at the bottom ofthe affordability chart were Santa Ana-Anaheim-Irvine, Calif.; Los Angeles-Long Beach-Glendale, Calif.; SanJose-Sunnyvale-Santa Clara, Calif.;and New York-White Plains-Wayne,

N.Y.-N.J.; in descending order.All five least affordable small housing

markets were in California. At the verybottom was Santa Cruz-Watsonville,where 16.6 percent of all new andexisting homes sold were affordable tofamilies earning the area’s medianincome of $77,900. Other smallmarkets included Napa, Salinas, SantaRosa-Petaluma, and San Luis Obispo-Paso Robles; in descending order.

-NAHB

Increasing Home Values Affect Housing Affordability

Record incomegap fuels UShousingweakness

IS YOUR TEAM READY?IS YOUR TEAM READY?Pro Am Golf Tournament

November 5, 2014

Call 778-5387

Page 2: Builders Outlook 2014 Issue 8

2 Builders Outlook 2014 issue 8

Nothing is more attractive to homebuyers than the right mix of comfort and value. You can provide both when you build homes that have natural gas.

Natural gas furnaces, water heaters and clothes dryers offer greater efficiency and lower operating costs than their electric counterparts, and natural gas kitchens sell themselves.

Let us help you plan for natural gas right from the start. For more information, contact Eduardo Lucero at [email protected] or (915) 680-7216.

DESIGN WITH NATURAL GAS IN MIND.

Page 3: Builders Outlook 2014 Issue 8

I got back from vacation and right away Ray told me about the issues with

Fort Bliss. Here we go again but this time we’re preparing for the fight. I call it

a fight because it’s going to be and we have to be united as we get in the ring

with the Department of Defense and the administration in Washington. I

remember how bad it was when back in the mid 90’s one day Fort Bliss lost

almost all the soldiers. They went to Colorado, which made no sense to me

and just about everybody else in El Paso. Then back in 2005 we were fighting

to keep Fort Bliss open, this time it was about not having enough water. After

a very long and hopeful time our Congressman and the community really

worked well to show Washington and the Pentagon that we had water and we

had land. Together with White Sands Missile Range we were about as large as

Rhode Island, and the Defense Department owned it from the ground to space.

We won that battle and found ourselves getting a whole new Fort Bliss built,

new roads from TexDot and lots of promises about housing. Two out of three

were true, housing was sort of left out because we just didn’t boom like we

thought we would. As Ray say’s we were given some less than truthful

promises and our boom was only a little bit of a snap. For some it was a great

thing, and some of our members became very good at working with the Federal

government. Others left to do work for them, and then contracts ran out and so

did the money. Some of them never recovered.

This time the Greater Chamber of Commerce has an early start to try to

protect Fort Bliss. Right now is the time to get our offense going. We cannot

afford to lose what we have, and I would tell the Pentagon we have a lot of room

to grow. So stay tuned as the Association works to keep Fort Bliss. We’ll

present a really good picture for them to have and easy time confirming that

Fort Bliss is the future and El Paso is truly a good neighbor.

President’s Message |

El Paso Disposal

772-7495

32014 issue 8 Builders Outlook

Frank

Torres

President,

El Paso Association

of Builders

Showroom: 2131 Missouri

915 • 533 • 6045 fax • 533• 6096

Thomas R. Brown, Owner

PRO AMGOLFTOURNAMENT

PRO AMGOLFTOURNAMENT

11•5•1411•5•1418 teams of four with a Sun Country PGA Pro

$600 a team

Advertising opportunitiesavailable call 778-5387

18 teams of four with a Sun Country PGA Pro

$600 a team

Advertising opportunitiesavailable call 778-5387

Page 4: Builders Outlook 2014 Issue 8

The month of July has become thetraditional time to take a break fromassociation business and this July wasno exception. We were able to use thelast two weeks of July to go to a nieceswedding in Los Angeles; visitDisneyland with the grandkids; andenjoy a week of family stuff. We followedthat up with a return through Las Vegasbut Margaret and I took along our oldestgrandkids, Gaby and Matt, so that theycould do some fancy eating and get alook at the hype they only heard about.I’ll be honest, driving isn’t as much funfor me as it once was, but with theairfares and security checks and theneed to rent a car once we got to L.A. Ijust decided it would be a scenic tripthrough the southwest. Even with goodplanning the results sometimes aredissatisfactory and I have to tell you thatI’m pretty good at planning, gettingdeals, and looking for unusual places toeat or enjoy. My past presidents haveexperienced my “concierge” style,knowing what to do and where to do it. Ifind places to eat so that the experienceis special and I like doing that. LatelyI’ve also begun to be a regularcontributor to Trip Advisor, the online

website that helps with travel. I’ve doneenough reviews to earn the title “seniorcontributor”. That and a dollar fifty getsme a cup of coffee, the only thing is thatthe coffee shop gets reviewed with myopinion.

Suffice it to say that we got toCalifornia in one piece after a littleweirdness in Phoenix. We stayed at a“resort” in Indian Wells, just outside ofPalm Springs. Note to Trip Advisor: skipthe resort, move on up the freeway tothe new Native American hotel/casino.Entering Southern California youimmediately get the traffic and brother isthere traffic. Even on a Sunday morningour drive was nearly bumper to bumperas we headed to meet our Austin kids atManhattan Beach, a public beach nearthe airport. More crowds, only with verylittle clothing on except for the guyssurfing who traditionally wear thosewetsuits. Finally a two hour drivethrough more L. A. traffic to our home fora week, Anaheim. We shared awonderful five bedroom house for theweek with our girls and their spousesand kids, an exercise in adjustment,poolside relaxing, and more driving. Wehad Disney fever and so we

experienced Disney all over again. Bythe way the price of admission is $100day for one park, $139 for two parks.One day. That’s right seeing Tinker Bellis not cheap. Downtown Disney is still“free”, if you call buying overpricedeverything free. We enjoyed our L.A.stay and capped if off with the reasonwe had gone, the wedding. I don’t knowhow my niece Gina and sister in lawMary Alice Contreras did it but it was awow! I will tell you I don’t think I’ve everbeen to a more beautiful church in mylife as the non-denominational cathedralin downtown Los Angeles. We had funwith the family, something I don’t sayoften enough, and we had a good time.All in all things for me get better whenwe hit Vegas, and so it was.

We’re back in the saddle and I alreadyhad to deal with another couple ofimportant things. Fort Bliss is beingattacked again, not by a foreign enemybut by the administration hell bent oncutting our Army staffing. We cannotafford to let this happen and you’ll behearing more. I did a piece for you toread in this edition and you’ll get moreas we continue to fight to keep Bliss veryactive.

My good friend Joe Pickett is prettyupset about the $96 million going to beused for the old trolleys. I don’t blamehim as I would think we have morepriorities that spending that much forsomething I think would be betterutilized. Joe Muench (pronouncedMinch), the El Paso Times columnistand also a friend said it best about thecity’s spending on stuff: Bike lanemoney should be used to repavestreets, something everyone uses, notbike lanes that no one uses. Go get ‘emJoe. City manager Tommy Gonzalezhas also endeared himself to me bysaying that we as a community need toknow that what we want has to be paidfor. In other words figure out how to payfor it before you buy it. Maybe thatnotion will reach the local politiciansnext time someone has a specialrequest for something they want.

My time off was appreciated butfrankly I think I’m more tired now thanbefore we left. Isn’t that just the way ithappens?

Perspective

Ray Adauto,

Executive Vice PresidentEPAB

4 Builders Outlook 2014 issue 8

Fort Bliss, trolley’s and time off. I’m tired, aren’t you?

Page 5: Builders Outlook 2014 Issue 8

52014 issue 8 Builders Outlook

Builder Confidence

Rises Two Points

Builder confidence in the market for

newly built, single-family homes rose two

points to 55 on the National Association of

Home Builders/Wells Fargo Housing

Market Index (HMI) for August, released

today. This third consecutive monthly gain

brings the index to its highest level since

January.

“As the employment picture brightens,

builders are seeing a noticeable increase

in the number of serious buyers entering

the market,” said NAHB Chairman Kevin

Kelly, a home builder and developer from

Wilmington, Del. “However, builders still

face a number of challenges, including

tight credit conditions for borrowers and

shortages of finished lots and labor.”

Derived from a monthly survey that

NAHB has been conducting for 30 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.

All three HMI components posted gains

in August. The indices gauging current

sales conditions and expectations for

future sales each rose two points to 58

and 65, respectively. The index gauging

traffic of prospective buyers increased

three points to 42.

“Each of the three components of the

HMI registered consecutive gains for the

past three months, which is a positive sign

that builder confidence appears to be

firming following an uneven spring,” said

NAHB Chief Economist David Crowe.

“Factors contributing to this rise include

sustained job growth, historically low

mortgage rates and affordable home

prices, which are helping to unleash pent-

up demand.”

Every region saw a gain in its three-

month moving average HMI score in

August. The Midwest posted a seven-point

increase to 55 and the West registered a

four-point gain to 56. The Northeast

posted a two-point gain to 38 and the

South was up one point to 52.

Housing Recovery

Continues at Slow

Pace

Markets in 56 of the approximately 350

metro areas nationwide returned to or

exceeded their last normal levels of

economic and housing activity, according

to the National Association of Home

Builders/First American Leading Markets

Index (LMI), released today. This

represents a year-over-year net gain of

seven markets.

The index’s nationwide score moved up

slightly to .89, meaning that based on

current permit, price and employment

data, the nationwide average is running at

89 percent of normal economic and

housing activity. Meanwhile, 78 percent of

markets have shown an improvement

year-over-year.

“Things are gradually improving,” said

NAHB Chairman Kevin Kelly, a home

builder and developer from Wilmington,

Del. “As the job market grows, we expect

to see a steady release of pent up demand

of home buyers.”

Baton Rouge, La., continues to top the

list of major metros on the LMI, with a

score of 1.39 – or 39 percent better than

its last normal market level. Other major

metros leading the list include Honolulu;

Oklahoma City; Houston and Austin,

Texas. Rounding out the top 10 are Los

Angeles; San Jose, Calif.; Salt Lake City;

Des Moines; and New Orleans.

“With the national tally only reaching 43

percent of normal, single-family housing

permits continue to be the lagging

component of the index,” said NAHB Chief

Economist David Crowe. “The big bright

spot is employment, where the number of

metro areas having reached or exceeded

their norms grew from 26 to 46 in a year.”

“In the 22 metros where permits are at

or above normal, the overall index

indicates that these markets have fully

recovered,” said Kurt Pfotenhauer, vice

chairman of First American Title Insurance

Co., which co-sponsors the LMI report.

“This finding shows the impact that an

uptick in permits can have on the overall

health of markets.”

Looking at smaller metros, both Odessa

and Midland, Texas, boast LMI scores of

2.0 or better, meaning their markets are

now at double their strength prior to the

recession. Also leading the list of smaller

metros are Bismarck, N.D.; Grand Forks,

N.D; and Casper, Wyo., respectively.

The LMI shifts the focus from identifying

markets that have recently begun to

recover, which was the aim of a previous

gauge known as the Improving Markets

Index, to identifying those areas that are

now approaching and exceeding their

previous normal levels of economic and

housing activity. More than 350 metro

areas are scored by taking their average

permit, price and employment levels for

the past 12 months and dividing each by

their annual average over the last period

of normal growth. For single-family permits

and home prices, 2000-2003 is used as

the last normal period, and for

employment, 2007 is the base

comparison. The three components are

then averaged to provide an overall score

for each market; a national score is

calculated based on national measures of

the three metrics. An index value above

one indicates that a market has advanced

beyond its previous normal level of

economic activity.

TEXAS BUILDER OF THE YEAR

2013

A W A R D E D

We build so you can GROW

Industry News

Page 6: Builders Outlook 2014 Issue 8

By Ray Adauto, EPAB

Recent actions by the Department of

Defense following orders from Congress and

the White House have caused concern about

the future of military bases and in particular

Fort Bliss. The Greater El Paso Chamber of

Commerce held a series of meetings and

hosted a group of Texas legislators to

discuss Fort Bliss with them. The

Committee on Defense and Veterans’

Affairs, chaired by Representative Jose

Menendez met in El Paso August 12 -13 to

take testimony on how the impact of a

proposed reduction at Bliss would affect El

Paso. Its mission is also to monitor the

newly created BRAC task force, SB 1200

and review methodologies to enhance

relationships between military installation

and state and local government to positively

impact decisions of BRAC. It is also

charged with seeking to identify, when

possible, new missions that would

complement or support exiting ones in

Texas.

The El Paso Association of Builders was

invited to present testimony and offer the

committee information with regard to the

impact it would have on construction,

particularly new home construction. Ray

Adauto, Executive Vice President, offered

written testimony to the committee and met

with the committee members. “We are

preparing for the potential for Fort Bliss,

whether that means a reduction in military

and civilian work force, or better yet the

opportunity the Post offers the Army,”

Adauto told the Outlook. “I think that as a

business community it’s our job is to show

the Army that we can handle more soldiers

and more jobs at Fort Bliss,” he said.

It was a sad day in 1993 when the city of

El Paso awoke to news that the 3rd

Armored Division would be moving to Fort

Collins, Colorado on a move that wasn’t

anticipated or known about. It was a rude

awakening to the community, and that led

to the formation of Team Bliss, a concerted

effort to ensure nothing like that would

ever occur again to El Paso. It came at an

opportune time because the Pentagon had

plans to close Fort Bliss because of

perceived water shortages. Team Bliss and

then Congressman Silvestre Reyes began

the work to save Fort Bliss and show the

Army that El Paso had water and resource

commitment to ensure a civilian military

partnership could be ongoing. BRAC

turned out good for the Post as

improvements were made and growth

happened on Fort Bliss.

The White House ordered a reduction in

the current active duty military as it wound

down the wars in Iraq and Afghanistan.

Since the reduction in those countries new

unrest has revived the hope that the cuts to

the military would be taken off the books.

However, the Congress created the BRAC

2020 law and it is in effect, looking for ways

to reduce DOD spending. The El Paso Team

Bliss members wasted no time in taking

action, beginning with a writing campaign to

the Pentagon and by inviting the Texas

delegation to hold hearings in El Paso. State

Representative Joe Moody echoed the

concerns of Team Bliss in his opening

remarks stating that El Paso is concerned

about the potential for cuts, but thinks that

we have to highlight all that is good about

Bliss. “I want to make sure that the Army

doesn’t forget it invested $8 Billion at Fort

Bliss over the last five years, and that the

state, the city and the private sector have

invested millions to make El Paso the most

friendly and safe home to the military,”.

Team Bliss will continue to meet and

monitor the actions of the DOD and hopes

to send delegations to important state and

federal meetings as they occur. The El Paso

Association of Builders has a commitment

to Team Bliss as an Association and through

the private businesses associated with us.

Stay tuned for more on this subject as it

arises.

6 Builders Outlook 2014 issue 8

DOWNTOWN415 NORTH MESA

stewart.com/el-paso

RATED BY FORBESGROWN IN EL PASO

Cindy Bilbe, President. Born and raised in El Paso.

OW OGGRROT R

I WN IN EL OY

P SOAS P PA

ProPertytaxreduction• Over 25 years of experience in property tax

valuations and real estate appraisals

• Property tax services throughout the USA

• Specializing in commercial, industrial, vacant land

• Residential and personal property valuations

PTP Valuation ServicesMark Salazar

1551 Montana, suite 204,

El Paso Texas 79902

915-542-3815 fax 915-542-0612

95% success rate

in achieving

Fort Bliss and the future: Are we facing another BRAC?

Page 7: Builders Outlook 2014 Issue 8

By Ray Adauto, Builders Outlook

The general meeting held at the

Marriott Hotel on August 13 featured the

new El Paso City Manager Tommy

Gonzalez addressing the Association for

the first time. Gonzalez, a native of

Lubbock, and former city manager of

Irving, Texas took to the podium to

present himself and his viewpoints on

the challenges of being El Paso’s second

city manager.

“I am very pleased to have the

opportunity to introduce myself to this

group and to bring to you my vision and

commitment to the public that I’ve been

entrusted with,” Gonzalez said. “I want

to make sure that I give you my ideas on

how I’ll run the city for you and assure

you that I will be as much a student as a

teacher in the process,” he continued.

Tommy Gonzalez is a retired Colonel

and successful businessman who

happen to enjoy the challenges of

government work. He has been the only

recipient of the Malcom Baldrige National

Quality award for outstanding work while

at Irving, a city constrained by geography

and smaller in population than El Paso.

It is also a much more conservative city

than El Paso and Mr. Gonzalez was

quick to point out in his remarks.

“I have never met a community that

wants this much and that considers

wants as necessities more than this

community of El Paso,” he told the

audience. “I come from very

conservative communities like Lubbock,

Harlingen and Irving where wants like

libraries and parks are just that…

want’s,” he continued. “Here those

things are considered necessities, almost

a demand, without regard of how we will

pay for them,” Gonzalez said. Gonzalez

began to tell the audience that the

projects authorized by the voters a few

years back will be completed despite the

fact that how those projects will be paid

for are still unknowns. “I will work to

complete the wants of the vote, but we

will have to figure creative ways to pay

for them because there wasn’t a plan in

place for doing so as part of the vote,

and that probably starts with increasing

taxes,” he said. He said that the city

would see increased revenues because

the city continues to grow, spreading the

increase over a larger base. The issue

of taxes was a key point to the

presentation he made to the association.

“I want to remind you that the school

districts take about 48 cents of every tax

dollar, while the city is at about 24 cents”

Gonzalez said as the screen showed a

chart showing those figures. His point

was to make sure the audience identified

the larger taxing entity and to show how

much needs to get done with the smaller

amount.

Gonzalez shared his goals for the job

at hand: address the challenges he

found; improve quality; implement

strategic goals and priorities; improve

communication; oversee capital

improvement programs; and get results

based budgets. He went on to give his

parents credit for his work ethic, showing

pictures of them in the fields picking

cotton and highlighting his family’s

history of challenges and

accomplishment. He is the proud father

of two boys and a loving husband,

showing us his personal life.

Tommy, as he likes to be called, told

the 132 guests that he sees stabilizing

revenues at the City while meeting the

demand for increased service levels,

including rising health care and fuel

costs as his key challenge. He has a

plan to create a realistic strategic plan

and align it and work it with all

departments. He plans to incentivize

success with employees while listening

to the voice of the customer. His military

background will bring some changes to

city hall as he will establish expectations

while fostering a team culture. He

strongly believes in being a Servant

leader.

Gonzalez is a Six Sigma black belt.

Wikipedia offers as a definition: Six

Sigma is a set of techniques and tools

for process improvement. It was

developed by Motorola in 1986]

coinciding with the Japanese asset price

bubble which is reflected in its

terminology. Jack Welch made it central

to his business strategy at General

Electric in 1995. Today, it is used in

many industrial sectors. Six Sigma

seeks to improve the quality of process

outputs by identifying and removing the

causes of defects (errors) and minimizing

variability in manufacturing and business

processes. It is clear that the city

employees will soon be getting trained in

Six Sigma in order to keep up with the

rigorous demands Mr. Gonzalez will

institute for change.

The new city manager is also getting to

know the politicians he has to work for

and try to decipher their wants to meet

the ability of the city to

pay for them. “It is clear that if you want

something you must pay for it, and I am

seeing a culture of wanting without

regard to paying for it,” he told the group.

“I found his talk refreshing and to the

point, because he didn’t mince words,

that’s for sure,” said Sam Shallenberger.

Many of the members echoed the same.

“It seems like we have someone who

isn’t going to rubber stamp everything,”

said Edmundo Dena. Shallenberger also

asked the city manager if he was going

to open on Friday’s which elicited this

response: “I want to make sure that we

meet the customer needs but I also have

to consider the employees who have

worked under the four day work week for

a while,”. When asked if the police and

fire contracts would be worked on he told

the audience that the police contract only

needs ratification by the union because

it’s done, and that the fire union contract

had not yet been agreed to. “I think we’ll

have the fire contract soon, especially

since the police already have theirs.”

Mr. Gonzalez was grateful for the

opportunity to come before the group

and he has pledged to work with the

association leadership for the benefit of

all. His construction background will

serve the association well so far as he

understands what it takes to be in this

business in the private sector. “I

understand the lingo, the struggles and

the wants,” he told us. “Be patient with

us and we’ll be good partners,”

Ray Adauto is Executive Vice Presidentof the El Paso Association of Builders,and editor of the Association’snewsmagazine, The Builders Outlook.He can be reached via email [email protected]

72014 ISSUE 8 Builders Outlook

Builders utlook on the scene |

City manager Tommy Gonzalez: ‘We have to pay for what you want’

Page 8: Builders Outlook 2014 Issue 8

el paso development news

FA vacant property in a long-standing

Northeast El Paso neighborhood will see

new life as a mixed-use development,

according to a current rezoning applica-

tion with the City. The owner is proposing

the project for a 0.23-acre property at

5101 Fairbanks Drive.

According to the project’s site plan,

there will be six commercial spaces and

two one-bedroom apartments created.

The commercial buildings will be easily

distinguishable as they will have zero

setbacks along Fairbanks Drive, which

means the structures will be built along

the sidewalk, with parking in the back.

The total area for the retail spaces

will be 4,781 square feet. Some of the

proposed uses include an art gallery,

book store, and flower shop, though no

tenants are named in the rezoning appli-

cation.

The two residential apartment units

will be located above the retail spaces

and will split a total of 1,509 square feet

of housing space. A 190 square foot

courtyard is also proposed.

The project will be built in two phas-

es, with the retail spaces constructed

first and the residential areas coming in

the “medium term.”

Cavallion Developers, the company

developing the project, is applying for

rezoning from residential to General

Mixed Use to allow for the unique center.

Mixed use designation allows for ele-

ments such as zero setbacks and

reduced parking requirements if

approved by the City.

No timeline is available for the proj-

ect which will be built at the corner of

Fairbanks Drive and Shenandoah Street,

west of Rushing Road. The City Plan

Commission will review the rezoning

application at its July 17, 2014 meeting.

Mixed-Use Infill Development Planned for Northeast El PasoProposed Project Includes Residential & Commercial Spaces with Zero Setbacks

The Northeast El Paso mixed use project will include retail buildings with zero set-

backs. Street trees are included in the zoning plan. (www.elpasotexas.gov)

The developer of a Far East El Paso

property formerly slated for a smart

growth development has submitted a

rezoning application showing the planned

layout for 113.7 acres of the site. The

property was part of the larger ‘El

Cruzero’ development that was cancelled

in 2013 when the owner sold the involved

parcels to River Oaks Properties.

Now referred to as ‘Desert Sands’ in

the master zoning plan, River Oaks pro-

poses to develop the property under

Residential Mixed Use (RMU) zoning that

includes single-family, duplex, triplex, and

quadruplex units. It is currently zoned C-4

Commercial.

The RMU designation means neighbor-

hoods will be constructed in a more com-

pact manner with a focus on promoting

walkability. This includes shorter block

lengths and recreational facilities within

one-eighth of a mile walking distance.

Providing a “range of housing types

and price levels” is also a focus of the

development, according to the master

zoning plan. Residential areas will abut

“neighborhood commercial” uses.

The perspective of buildings and land-

scaping will contribute to pedestrian

friendly streets, with a focus on neighbor-

hood parks. Buildings will have zero set-

backs, according to the plan, meaning

facades will be at or nearly at the side-

walk.

The proposed layout differs significantly

from El Cruzero’s ambitious illustrative

plan. Desert Sands will have a standard

grid design, with all streets meeting at

right angles. A main thoroughfare is pro-

posed that will travel north and south

through the development, with a linear

park occupying the median area. There

are two smaller neighborhood parks

towards the middle of the site plan.

Culdesacs are located on the northern

and southern portions of the site. Single

family parcels will occupy the vast majori-

ty of the development, with two-, three-,

and four-unit buildings slated for a narrow

strip of the development jutting up from

the northwestern corner of the property.

El Cruzero, cancelled in March of 2013,

had a somewhat different vision for the

same site. The illustrative site plan includ-

ed a mix of residential, civic, and flex

space, properties that could include

office, residential, or retail activities.

Multiple parks and open space areas

were planned.

The 113.7-acre portion of the former El

Cruzero property now being called Desert

Sands encompasses the northeastern

portion of the 220 acres sold to River

Oaks Properties last year. River Oaks

has not disclosed its final plans for the

southern portions of the property, which

included a hotel block, higher density res-

idential, and a town center in El Cruzero’s

plans.

River Oaks told El Paso Inc. last year

that it intends to bring a development

called Town Center on the Loop to 50

acres at the site, but mentioned no time-

line nor whether it intends to incorporate

smart growth into its design.

River Oaks is one of the largest com-

mercial real estate developers in El Paso,

making Desert Sands stand out as a resi-

dential development for the company.

According to the master zoning plan, the

project will be constructed in one phase

and should take two years to complete,

though no starting date is mentioned.

The City Plan Commission will consider

the rezoning request at its July 17, 2014

meeting.

Plans Revealed forFormer ‘El Cruzero’LandRiver Oaks Seeks MixedUse Zoning for 113 Acresin East El Paso

Single-family homes (in yellow) will make up the majority of the 113-acre

Desert Sands development proposed by River Oaks Properties. A linear

park will occupy the median of a north-south street. (City of El Paso)

Sun Metro AddsArticulated Busesto East Side Route

The newest additions to Sun Metro’s

bus fleet aren’t only reserved for the

Rapid Transit System (RTS) debuting

later this year. El Paso’s mass transit

system has added three 60-foot articu-

lated buses to serve its most popular

route, Route 59.

The 2014 New Flyer Xcelsior units look

much different from the Sun Metro units

to which most residents are accus-

tomed, mostly due to the extended

length and the accordion-style joint sec-

tion in the middle of the bus.

Other amenities include low floors, a

smoother braking system, better fuel

economy, and LED interior lighting. The

larger size allows for 48 passengers

seats with additional room for 24 stand-

ing passengers.

Though nearly identical to the Brio RTS

units that will be in use later this year,

these regular route buses will not offer

free WiFi service.

Three Xcelsior buses were added to

Route 59 beginning last week, which

runs from Downtown El Paso to the

Eastside Terminal near Cielo Vista Mall,

mainly via Interstate 10.

Page 9: Builders Outlook 2014 Issue 8

The location for a new Corner Bakeryrestaurant in East El Paso has beenselected, according to an item on the CityPlan Commission’s (CPC) agenda. Thenew eatery will be built at 1311 AirwayBoulevard, at the intersection withEdgemere Boulevard.

The restaurant will be built at the siteof a former golf shop in front of a relative-ly new TownePlace Suites by Marriott.The GECU headquarters building islocated across Edgemere. It will be thefourth Corner Bakery location in El Paso,with two also located on the East Sideand another located on the West Side.

In the Northeast part of town, a CVScould be coming to a property near the

corner of Dyer Street and Diana Drive.An item also set for consideration by theCPC has a label titled “CVS Subdivision,”though the site plan does not show theactual store.

The application includes two commer-cial lots totalling 1.97 acres, across DianaStreet from the future Northgate TransitOriented Development being advancedby the City of El Paso. Officials haveremained mum on that project since thebidding period closed last year.

CVS has been steadily expanding inthe city after opening its first store inDowntown El Paso in early 2013. Sincethen, it has opened a store on ZaragozaRoad in the Lower Valley and has plansfor a store on Mesa Street near UTEPand another on the East Side at McRaeBoulevard and Wedgewood Drive.

No word on the timeline for either proj-ect. The CPC will consider both items atits July 31, 2014 meeting.

Builders Outlook Issue 8.2014

Content provided byEl Paso Development News visit: elpasodevnews.com

Retail Buzz: Corner Bakery Coming toAirway, CVS to Northeast

A detailed site development plan is offAnew hotel/retail complex for a propertynear El Paso International Airport isexpected to break ground this year, andnow a video is offering a fresh look atwhat the center may look like once com-pleted.

The design of the complex in the ren-derings included in the video shows acontemporary design for the buildings,which create retail blocks on the propertywith parking in the middle. Bright colors,curving lines, and fountains can be foundthroughout the expected 80,000 squarefeet of retail space.

A “main street” divides the propertydown the middle, called Acequia ParkCourt. It will have retail buildings liningboth sides, with zero setbacks and streetparking. Other retail buildings will lineBoeing Drive on the northern side of theproperty, including the highly visible inter-section with Airway Boulevard.

Acequia Park Court will lead up to the

new high rise Westin Hotel, ending at aproposed drive called High Street. Thehotel shape has changed from triangularin initial site plans to a more traditionalrectangular footprint. And the height looksto be a bit shorter, with between nine andten floors included in the new conceptimagery.

The hotel may also have a contempo-rary look, according to the video. Fourhuge circular cutouts run down the middleof the building along a wide decorativecolumn, the base of which contains alarge waterfall feature. This columns linesup with Acequia Park Court.

Neon-colored rectangles can be seeninterspersed along the facade of the hotel,surrounding multiple hotel windows each.These are lit up at night in the video,matching neon arcs on some of the retailstructures.

The video was posted to Vimeo in Julyby Ronkot Design of Fort Worth(www.ronkot.com).

The layout of the buildings matches arecently unveiled updated site plan fea-tured by Construction Reporter News (con-structionreporternews.com). Aside from themajor change in shape of the hotel, thelayout of the complex remains largely simi-lar to previous versions, with the biggestchange being the removal of a roundaboutin front of the hotel. Retail buildings in thatsection have been changed accordingly.

The site plan features parking areas inthe middle of the retail blocks, plus hotelparking located on the western side of theproperty. A ponding area on the northwest-ern corner will be used as open space.

Last year, the City of El Paso awarded

an incentives package to EP Vida, LLC, todevelop the nine-acre property into a four-star hotel and retail complex. As part ofthe agreement, the hotel will have at least220 rooms. In all, the project is expectedto be at $64 million, according to thepackage.

The timeline for the project has shifted,with groundbreaking originally scheduledfor earlier this year. In February, thedeveloper announced that Jordan FosterConstruction would perform “predevelop-ment services” for the project and likelyserve as general contractor.

That same month, EP Vida told the ElPaso Times that construction would begin

in June. Then in July, the developer toldthe Times that revisions to the property’splat has delayed the project and that theyweren’t sure when construction will begin.The developer also suggested the projectwill be built in two phases, with construc-tion of the hotel happening first.

The hotel/retail complex was originallyslated for completion in fall of 2015,though it is unclear if that deadline canstill be met.

WestinHotel/RetailComplex Teased

in New Video

Updated Renderings Showa Changed Footprint forHigh Rise Airport Hotel

Walmart Plans to Add Another West Side StoreRetail Giant Submits Site Development Plan for Sunland Area Location

A Walmart store may soon be headedto a property near the intersection ofSunland Park Drive and Doniphan Drivein West El Paso, according to a DetailedSite Development Plan recently submittedto the City.

The retailer has plans to construct a41,980 square foot WalmartNeighborhood Market at 1110 SunlandPark Drive, just east of the State LineRestaurant. The property on which theWalmart will be constructed is located in

Texas but nearly crosses the New Mexicostate line.

According to the site plan, the store willsit at the back of the property with parkinglocated in front of the store. A separate lotoccupies the front of the property, alongSunland Park Drive, though there is nomention of what may be constructed therein the future..

Vehicle access to the Walmart will bevia a driveway connected to Emory Driveon the western side of the store. Anotherdriveway will be located off of the right-turn-only lane along eastbound SunlandPark Drive. BNSF Railway railroad tracksrun on the eastern side of the property.

A different Walmart location openedrecently along Doniphan Drive, at its inter-section with Redd Road. The new storewill be about four miles to the south.Other planned Walmart locations for thecity include one at the Aldea developmentnear Executive Center Boulevard on theWest Side and another at North HillsCrossing in Northeast El Paso.

The City Plan Commission will considerthe Detailed Site Development Plan forthe latest Walmart at its July 31, 2014meeting.

Acequia Park Court will have restaurants and retailerslining both sides of the “main” street. (Ronkot DesignVimeo Channel)

Page 10: Builders Outlook 2014 Issue 8

2015 is getting close and the Employer

Shared Responsibility Mandate (“Play or Pay”)

under the Affordable Care Act is almost here. So

what does this mean for your organization? Play

or Pay requires certain employers to offer

affordable and adequate health insurance to

full-time employees and their dependents, or

they may be liable for a penalty for any month

coverage is not offered.

Play or Pay goes into effect in the calendar

year of 2015 for large employers only. However,

mid-size employers aren’t entirely off the hook.

They’ll have to report on insurance coverage

even though they won’t be liable for penalties in

2015. By January 1, 2015, businesses with 100

or more full-time or full-time-equivalent

employees must ensure they are offering health

benefits to all of those working an average of 30

hours per week, or 130 hours per month. If an

employer has a non-calendar year plan and can

meet certain transitional rules, they can delay

offering employee health benefits until the start

date of their non-calendar year plan in 2015.

Mid-sized employers will have to comply

beginning in 2016.

Here are important questions that

employers need to answer today:

• Do you know which category your business fits

into?

• How do you classify who is a full-time

employee?

• What do you need to do to comply with Play or

Pay requirements?

Let’s take an in-depth look at each of these

questions.

Which category do you fit into?

Whether you are a small, mid-sized, or large

employer is determined by the number of full-

time and full-time equivalent employees (FTEs).

It sounds simple on the surface:

• Small employers have 1-49 full-time or FTE

employees

• Mid-sized employers have 50-99 full-time or

FTE employees

• Large employers have 100+ full-time or FTE

employees

However, it’s important to remember that

these numbers can be affected by several

factors, including whether the employer is a part

of a control group, seasonal employees and

variable-hour employees. That brings us to our

next question:

Who is a full-time employee?

The law defines a “full-time employee” for

penalty purposes as an employee who, for any

month, works an average of at least 30 hours

per week, or 130 hours. This includes any of the

following paid hours: vacation, holiday, sick

time, paid layoff, jury duty, military duty and paid

leave of absence under the Family and Medical

Leave Act.

Employees who aren’t considered full-time

include non W-2 leased workers, sole

proprietors, partners in partnerships, real estate

agents, and direct sellers.

Variable-hour employees—those who don’t

work a set amount of hours each week—fall into

a gray area. That is, they don’t need to be

counted as full-time employees until and unless

it becomes an established practice for them to

work more than 30 hours per week.

To assist employers in determining whether

variable hour workers will meet the definition of

full-time employees (and therefore need to be

offered health insurance), employers may use

various “look back” and “look forward” periods.

Here is a summary of terms used for measuring

variable-hour employees:

• Measurement Period: A period from three to

12 months in which the employer would track

hours to determine whether the employee

worked an average of more than 30 hours per

week.

• Stability Period: A period from six to 12

consecutive months in which the employer

must provide health insurance coverage to

employees who worked more than 30 hours

per week in the Measurement Period. Note:

must be at least six months and cannot be

shorter than the Measurement Period.

• Administrative Period: A period not to exceed

90 days, which falls between the

Measurement Period and Stability Period,

and/or a short period after a new employee’s

date of hire. Using this waiting period allows

employers to analyze eligibility of full-time

employees and provide enrollment information

to enroll them in a plan before penalties could

be assessed.

Does your plan meet the Play or Pay

requirements?

To avoid penalties, you’ll need to make sure

your plan meets certain requirements. First,

coverage must be offered to full-time employees

and their dependents. Under the ACA,

dependents are defined as children under age

26. Spouses are not considered dependents.

For more information contact

Joe Bernal

[email protected]

915-542-0900

(c) Copyright 2009 Employee Benefit News.

All rights Reserved.

� � � �� � � � �� � � � � �

� � � � � �� � �

� � � �� � � � � � �� � � � � � �� � � ��

� � � � � � �� � � � �

� � � �

� ��

���� �

���

� �� � �

10 Builders Outlook 2014 issue 8

Joe Bernal

Employees

Benefits of

El Paso

Play or Pay under

the Affordable

Care Act is almost

hereFor All Your Electrical Needs

Residential Specialists

Tract Homes • Custom Homes

915-629-8196

800-853-3996

Total Customer

Satisfaction

Expert Advice

Page 11: Builders Outlook 2014 Issue 8

112014 issue 8 Builders Outlook

Industry News

Give your customers the ‘option of the sun’

Now more than ever,

El Paso home buyers

are planning for the

future.

Border Solar can help

you offer your

customers solar power

as a sensible

alternative.

The future starts

today.Crossing to Clean Energy

www.bordersolar.com

7365 Remcon CircleEl Paso, TX 79912

(915) 613•4168

follow us on twitter and

facebook:

BorderSolar

By Dina ElBoghdady, Washington Post

The head of the

Federal Housing

Administration

announced recently

that she’s leaving

her post toward the

end of the year to

return home to

California, where she

will teach at the

University of California, Berkeley starting in

January.

FHA Commissioner Carol Galante joined

the Department of Housing and Urban

Development more than five years ago as

a deputy assistant secretary for multi-family

housing programs before she was

confirmed to lead HUD’s FHA in December

2012.

Galante took the FHA post as the agency

was struggling to beef up its cash reserves.

In the wake of the housing bust, the

agency had propped up the housing

market by insuring qualified lenders against

losses. But its default rate shot up as its

loan volume expanded, depleting its

reserves to levels below what is required

by law. In September, FHA tapped taxpayer

money to cover its losses for the first time

in its history. The White House has since

projecteted that FHA would not need

taxpayer help  in fiscal 2015.

Galante’s departure comes just as HUD

Secretary Julian Castro is gearing up at his

new post.

In her goodbye memo to staff, Galante

said Biniam Gebre, general deputy

assistant secretary for housing, will take

over as acting FHA commissioner once

she’s gone. She also discussed her tenure

at FHA and her plans in California, where

she was once chief executive of Bridge

Housing Corp., a nonprofit developer of

affordable, mixed-income and mixed-use

developments in the state.

Here is the full memo:

After serving alongside you for over 5years and after careful consideration, Ihave decided to leave HUD and my role asthe Assistant Secretary Housing /FHACommissioner toward the end of this year.In January, I will assume the I. Don TernerDistinguished Professorship in AffordableHousing at the University of California,Berkeley, where I will also serve as theDirector of the Berkeley Program inHousing and Urban Policy and co-chair theFisher Center on Real Estate PolicyAdvisory Board. This is a compellingopportunity for me to continue with work Iam passionate about and also return hometo California.

While I am excited about Californiaweather and tossing out my ice scraper, Iwill miss working with all of you to continuethe important work we have been doingover the past several years. When I startedas the Deputy Assistant Secretary forMultifamily Housing we were stillrecovering from the economic crisis andthe market was far from stable. Nowbecause of your efforts, we have helped

our housing market come back.Homeowners’ equity is now over $10trillion, foreclosure starts are at their lowestlevels since 2005, and American familiesare on pace to purchase over 5 millionhomes this year alone. Every area of theOffice of Housing stepped up to thechallenges of meeting the extraordinaryneeds during this critical time.

I stepped into the role of AssistantSecretary of Housing and FHACommissioner just as the toll the legacyportfolio was taking on the MMI Fundbecame apparent. By working hard toestablish the right pricing, increaserecoveries on distressed assets and bettermanage risk, we have turned the corner onthose losses and significantly improved thefinancial health of the Fund.

There are so many other ways in which,we have a much stronger Office ofHousing. With the Risk Office, we haveimplemented a holistic approach to riskassessment for every business line. Wehave stabilized the HECM Program andpartnered with Public and Indian Housing(PIH) to find ways to invest in public andaffordable housing. We managed a fivefoldincrease in multifamily and healthcare workand we have begun the process ofclarifying FHA policy so lenders have clear,consistent guidelines to follow. I could goon and on, but it is not necessary as youknow better than anyone what has beendone.

The point I want to make is how veryproud I am of what we have accomplished

and what a privilege it has been to be partof your team. Any success I’ve had hasonly been because of your efforts, yourcommitment and your ability to go aboveand beyond for the millions of families thatdepend on the work that we do.

I will miss the enthusiasm andcommitment of this amazing housing team.And though I am leaving, I am confidentthat Biniam Gebre, General DeputyAssistant Secretary for Housing, willprovide the leadership and continuityneeded to continue progressing toward ourshared goals. In fact, it is because of thestrong leadership team in both the field andheadquarters that I can leave at this timewith great confidence, knowing our workwill continue unabated.

However, now is not quite yet time forgoodbyes! Over the next few months as wetransition, I will be relentless in focusing onour most recent initiative the “Blueprint forAccess” and other high priorities such asthe Rental Assistance DemonstrationProgram.

I remain passionate about the work wedo to make housing more available andaffordable for American families and assistcommunities to thrive. It is why I joinedHUD and why having the opportunity towork with you has been so rewarding.Thank you for making the past five yearsso successful and inspiring.

Thank you,Carol

Top housing official stepping down by year’s end

Carol Galante

Page 12: Builders Outlook 2014 Issue 8

12 Builders Outlook 2014 issue 8

Page 13: Builders Outlook 2014 Issue 8

Membership News

Thanks to our AUGUST

SODA SPONSOR:PALO VERDE HOMES

132014 Issue 8 Builders Outlook

www.elpasobuilders.com www.epbuilders.org

UPCOMING EVENTS |

Jaime’sCourier

Service,Inc.

Jaime’sCourier

Service,Inc.

915-549-4533 or

915-478-2404

Bonded, insured foryour peace of mind.

NEW MEMBERS |MARBLE & GRANITE DESIGN

CONCEPTCONTACT: JUAN ZALDIVAR

5952 GRIEMS CT.

EL PASO, TX 79905

915-319-4443

EL PASO WINDOW CO. INC.CONTACT: ELIZABETH

RIVERA1724 TEXAS AVE. SP-A

EL PASO, TX 79901

915-584-0226

ADT SECURITYCONTACT: VERONICA

VAZQUEZ11227 PELICANO DR.

EL PASO, TEXAS 79935

915-440-1554

LARA & COMPANY CREATIVE, INC.

CONTACT:RICHARD (RIC) LARA

1317 MONTANA AVENUE

EL PASO, TEXAS 79902

915-544-9800

SEPTEMBER 3-5NAHB FALL EOC MEETING

PHOENIX, AZ

SEPTEMBER 10BOARD MEETING

12 NOONEPAB OFFICE

OCTOBER 8BOARD MEETING

11:00GENERAL MEETING

12:00 EL PASO CLUB

CHASE BANK BLDG.

OCTOBER 17 – 19FALL HOME AND GARDEN

SHOWEL PASO CONVENTION

CENTER

RENEWALS |PALO VERDE HOMES

STEWART SOLUTIONS

TRE & ASSOCIATES

CUSTOM DREAM HOMES

BUILDER’S FINANCE COMPANY

There’s no place like the 2014Parade of Homes for the Holidays!

Exclusive sponsorship opportunities available

PARADE

HOMESof

E l PA S o A S S o c i AT i o n o f B u i l D E R S

open december 5 - decemb

er 21

PARADE

HOMESExperience luxury living

& the spirit of giving!

The El Paso Association of Builders proudly present the 2014 Holiday Parade of Homes

December 5-21, 2014 at Rio Valley Subdivision by Winton.

This year, the Parade of Homes will feature a holiday theme and embrace the spirit of giv-

ing by sharing proceeds with local not-for profit organizations.

There are many creative and fun sponsorship opportunities. The 2014

Parade of Homes is a perfect place to showcase your business!

SODA SPONSOR

CONDOLENCES

Condolences to Javier Ruizon the loss of his mother.

Condolences to DavidBombach past president

and Nick Bombach Casas

de Leon on their loss.

Page 14: Builders Outlook 2014 Issue 8

14 Builders Outlook 2014 issue 8

We are starting to gear up for the finalleg of 2014 and that means we’re busy asan association. First I’d like to thank all ofyou that attended the General Membershipmeeting where Tommy Gonzalez spoke at.He was something wasn’t he? I had theopportunity to ask if the city would start toopen on Friday’s? Mr. Gonzalez said hewas studying that and it would depend ona number of factors including how thestaffs could adjust. Thought I’d ask sincemost of us are open. It’s times like this onethat gets you in front of the leadership of

the City that is part of your membershiphere. We have had a really good group ofspeakers once again and this was one ofthe best. As for what’s coming up nextwe’re still looking at doing a surplus sale ofsome sort, if there’s interest. It would thenbe followed by our bowling tournament,and then more. We set up the date for thePro Am golf at Painted Dunes, November5, shotgun at 9 am, only 18 teams. Rayhas five already sold so again it probablywill be sold out long before the date.Teams are $600; sponsorships are

available and also selling fast. Our yearwill end with the Holiday Parade of Homes,and the installation. Somewhere inbetween we’d like to do a three day Vegastrip, to unwind and celebrate our work.September is also the only month thatmembers will have to get free admission tothe International Builders Show in January.Don’t wait because you can save a bunchof money. Stay tuned for otherannouncements and thanks again forbelonging.

Sam

Sam ShallenbergerWestern Wholesale Supply

Associates Council

�e options builders asked for are right here.Developed with the backing of the strongest insurance carriers serving the Texas building industry, the exclusive TAB endorsed insurance program o�ers new �exible options and rates that aremore competitive than ever before.

Program Highlights

defective, or poor workmanship in your work

Contact your local approved agent today!

www.builderagentnetwork.com

El Paso, Permian Basin and Surrounding Area

www.hubinternational.com

Advertise your business to the home

building industryThe Builders Outlook is the official publication of the El Paso Association of Builders. Ouraward winning monthly newspaper is the only publication to target El Paso home builders andrelated businesses.

Widely distributed throughout the city and available to readers online, the Builders Outlook isan important advertising medium for any business that want to reach this valuable market.

Call 778-5387 today for more information

Page 15: Builders Outlook 2014 Issue 8

� execuTive oFFicerS

Frank Torres – President

GMF Custom Homes

edgar montiel – vice President

Palo Verde Homes

carlos villalobos – Secretary Treasurer

Palo Verde Homes

Sam Shallenberger – Associates chair

Western Wholesale

edmundo Dena - immediate Past President

Accent Homes

ray Adauto – executive vice President

El Paso Association of Builders

Jay Kerr -Attorney of record

� couNciL/commiTTee cHAirS

Associates council

Sam Shallenberger

Build PAc

Randy Bowling

Desert Green Building council

Javier Ruiz

Land use council

Sal Masoud

Young Designer Award

John Chaney

remodelers council

Rudy Guel

membership retention

Mike Santamaria, Greg Bowling

Finance committee

Carlos Villalobos

Women’s council

Lorraine Huit

� ADviSorY To THe BoArD

J. Crawford Kerr, Attorney, Firth, Johnston

& Martinez

� BoArD oF DirecTorS

Beverly Clevenger, Automated Division 6 Builders, Inc.

Leti Navarette, Custom Dream Homes

Kathy Parry, Hunt Communities

Edgar Garcia, Bella Vista Custom Homes, Inc..

Bud Foster, Southwest Land Development Services

Juanita Garcia, ICON Custom Home Builder, LLC

Walter Lujan, DAWCO Home Builders

Joey Najera, Joseph Custom Homes

Rigo Mendez, Mission Homes

Nick Bombach, Casas de Leon, LLC

Lydia Mhouli, Crown Heritage Homes

JJ Vasquez, Pacifica Homes

Dan Ruth, Millenium Homes

Ken Wade, El Paso Building Materials

Ruben Orquiz, MTI Ready Mix

Kathy Carrillo, Pioneer Bank El Paso

Henry Tinajero, WestStar Bank

Chuck Gabriel, Carpets West

Ted Escobedo, Snappy Publishing

John Chaney, Passage Supply

Joe Bernal, Employee Benefits of El Paso

Linda Troncoso, TRE & Associates

Orlando Rodriguez, Mass Media Advertising, Inc.

Bret Thompson, Foxworth Galbraith Lumber

Chris Worm, City Bank Texas

Sal Masoud, Del Rio Engineering

2013 Builder member of The Year

Edmundo Dena

Accent Homes

2013 Pat cox AwardSam Shallenberger

Western Wholesale Supply

2013 Associate of The YearWestStar Bank

Larry Patton, Burt Blacksher

and Henry Tinajero

Honorary Life members

Wayne Grinnell

Don Henderson

Chester Lovelady

Cliff C. Anthes

Anna Gill

Brad Roe

Rudy Guel

E H Baeza

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.

© 2014 Builder’s Outlook

is published and distributed for the

El Paso Association of Builders

by Ted Escobedo, Snappy Publishing

[email protected]

El Paso • Texas • 79912 915-820-2800

6046 Surety Dr. El Paso, TX 79905

915-778-5387 • Fax: 915-772-3038

Greg Bowling

Kelly Sorenson

Mark Dyer

Mike Santamaria

John Cullers

Randy Bowling

Doug Schwartz

Robert Baeza

Bobby Bowling, IV

Rudy Guel

Anna Gil

Bradley Roe

Bob Bowling, III

E. H. Baeza

Hershel Stringfield

Pat Woods

� TAB STATe DirecTorS

Randy Bowling

Greg Bowling

� NATioNAL DirecTorS

Bobby Bowling IV.

Demetrio Jimenez

NATioNAL ASSociATioN oF

Home BuiLDerS

(800) 368-5242

TexAS ASSociATioN oF

BuiLDerS

(800)252-3625

www.elpasobuilders.com www.epbuilders.org

Builders utlook

Page 16: Builders Outlook 2014 Issue 8