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utlook

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2014: issue 5

The Economy
Freddie Mac: Only 2 in 5 Housing Markets are Improving
Freddie Mac's new Multi-Indicator
Market Index (MiMi) continues to show a
weak housing market overall. The
national MiMi value is flat compared to
last month and has improved only slightly
year-over- year.
MiMi monitors and measures the
stability of the nation's housing market,
as well as the housing markets of all 50
states, the District of Columbia, and the
top 50 metro markets. MiMi combines
proprietary Freddie Mac data with current
local market data to assess where each
single-family housing market is relative to
its own long-term stable range by looking
at home purchase applications, paymentto-income ratios, proportion of on time
mortgage payments in each market, and
the local employment picture.
These indicators are combined into a
composite MiMi value for each market.
TheMiMi value ranges between -12 and
12 and helps determine if a housing
market is Weak, In Range, or Elevated
relative to its own stable range of housing
activity and whether the market is
trending toward or away from that
range A market can fall outside its
stable range by being too weak to
generate enough demand for a wellbalanced housing market or by
overheating to an unsustainable level of
activity.
The MiMi for March stands at -3.06
point, a 0.03 point improvement from
February. The three month trend for
March is +0.05. That value must move

Get ready
for the
subprime
mortgage
crack-up 2.0

By Edward J. Pinto | Real Clear Markets

In 1991 community advocate Gail
Cincotta, in testimony before the Senate
Banking committee stated: "Lenders will
respond to the most conservative
standards unless [the GSEs] are
aggressive and convincing in their efforts
to expand historically narrow
underwriting." The next year Congress
imposed affordable housing mandates on
Fannie Mae and Freddie Mac. Over the
next 15 years the Department of Housing
and Urban Development (HUD) forced
the abandonment of traditional
underwriting standards, which led to an

by at least one-tenth of a point or the

associated directional trend for that
market's three month period is
considered flat.
On a year-over-year basis, the U.S.
housing market has improved by 0.66
points. The nation's all-time MiMi low of 4.49 was in November 2010 when the
housing market was at its weakest.
Most of the states and metro areas are
called "weak and flat" or "weak and
declining" in the MiMi narrative. Ten of
the 50 states and the District of Columbia
are in their stable range as are four of the
50 metro areas. The top five states are
North Dakota, Wyoming, the District of
Columbia, Alaska, and Louisiana, all
unchanged from last month and the four
metros are San Antonio, New Orleans,
Austin, and Houston.
The states that were most improved
from February to March were Ohio,
Rhode Island, Illinois, Texas, and South
Carolina while those that improved the
most from March 2013 were Florida,
Nevada, South Carolina, California, and
Texas. Improved metros on a monthover-month basis were Cincinnati,
Columbus, Houston, Riverside, and San
Antonio while year over year they were
Miami, Orlando, Las Vegas, Tampa, and
Riverside. Freddie Mac notes that most of
the markets that are improving or in a
stable range are areas currently in the
midst of an energy boom.
Overall, in March, 13 of the 50 states
plus the District of Columbia are

improving based on their three month

trend, and 20 of the 50 metros show an
improving trend.
Freddie Mac Chief Economist Frank
Nothaft said, "Less than half of the
housing markets MiMi covers are
showing an improving trend, whereas at
this same time last year more than 90
percent of these same markets were
headed in the right direction. We're
hopeful that many of these markets that
have stalled will start moving again now
that mortgage rates have eased over the

past month and the spring home buying

season is upon us. House price gains are
a double-edged sword at this stage of the
recovery. They help those hard-hit
markets where prices are still low and
many homeowners are underwater, but in
areas where supply is constrained,
they're creating an imbalance and pricing
out many first-time homebuyers."
The National Mimi and interactive
indices for each of the states and metro
areas can be accessed at
http://www.freddiemac.com/mimi/.

accumulation of an unprecedented
number of weak and risky non-traditional
mortgages. The collapse of housing and
mortgage markets, and the ensuing
Great Recession, may be directly traced
to those events in the early-1990s.
Earlier this month the following
headline appeared in the Wall Street
Journal: "U.S. Backs Off Tight Mortgage
Rules: In Reversal, Administration
[HUD/FHA] and Fannie, Freddie
Regulator Push to Make More Credit
Available to Boost Housing Recovery."
Clearly memories as to the causes of the
recent housing market collapse are
short. Indeed, political pressures are
once again increasing on the private
sector to degrade sound lending
practices.
The headline refers to two policy
statements made May 13, one by Mel
Watt, director of the Federal Housing
Finance Agency (FHFA), and the other by
Shaun Donovan, secretary of HUD. The
FHFA is the regulator of Fannie Mae and
Freddie Mac, which along with the
Federal Housing Administration (FHA)
are responsible for guaranteeing about
75 percent of all mortgage credit in the
United States.
Watt announced a course reversal from
his predecessor Edward DeMarco. One
of his most significant moves was the
alignment of FHFA's policies -- with
respect to discouraging private sector
discretion in adhering to strong
underwriting standards -- with those of

the FHA. Watt warned lenders and

private mortgage insurers that "credit
overlays result in the rejection of many
loans that would otherwise meet [Fannie
Mae and Freddie Mac] credit standards."
This echoes FHA Commissioner Carol
Galante's 2013 statement: "[L]ender
overlays are damaging the recovery by
limiting access to creditworthy
borrowers."
The parallels to Cincotta's statement
are unmistakable: regulators must
convince lenders and private mortgage
insurers to stop utilizing more
conservative standards than allowed by
government agencies.
Why do policymakers want to force the
private sector to originate easy credit
loans? First is the desire to use easy
credit to juice an anemic economic
recovery. Yet we have already had 6
years of the lowest interest rates in
generations, combined with already loose
lending standards. The result has been
increasing home prices in concert with
stagnant incomes, leading to reduced
affordability, particularly in places like
California.
Second is to expand access to
"creditworthy borrowers." This statement
is duplicitous. The real goal is to get the
private sector to originate more loans to
sub-prime borrowers with credit scores
below 660 or pre-tax debt-to-income
ratios above 43 percent, and to nonprime loans to borrowers with tiny down
payments. This is a continuation of a fifty-

plus years housing policy based on using

ever greater leverage in a futile attempt
to expand homeownership by helping
unqualified borrowers buy homes.
This leverage has taken the form of
reduced down payments, higher debt
ratios, extending loan terms to 30 years,
and credit to those with impaired credit
histories. This policy failure is evidenced
by a stagnant homeownership rate which
today stands at 62 percent (excludes
owners with seriously delinquent loans),
the same rate as in 1960. Yes, the rate
did hit 69 percent in 2004, but that was
thanks to the loose lending standards
resulting from Congress' following Gail
Cincotta's prescription. Contrast 1940 to
1960, a period during which the home
ownership rate rose dramatically for both
blacks and whites. Why? Precisely
because home lending until 1960 was not
highly leveraged, making it low risk to
homebuyers and lenders alike.
The cautionary remarks of Watt's
predecessor, Ed DeMarco, also made on
May 13, are pertinent: "[d]o not confuse
weakening underwriting standards and
underpricing risk with helping people or
promoting market efficiency. A
government effort to assist families with
limited resources and poor credit history
to take on increased leverage seems a
curious public policy."
American Enterprise Institute (AEI)
resident fellow Edward Pinto is the codirector of AEI's International Center on
Housing Risk.

Freddie Mac Chief Economist

Frank Nothaft said, "Less than
half of the housing markets MiMi
covers are showing an improving
trend, whereas at this same time
last year more than 90 percent of
these same markets were
headed in the right direction.
We're hopeful that many of these
markets that have stalled will
start moving again now that
mortgage rates have eased over
the past month and the spring
home buying season is upon us.
House price gains are a doubleedged sword at this stage of the
recovery.

Builders Outlook

Natural gas is right on the money.

Todays builders need every advantage they can get, and natural gas homes
are instantly more attractive.
Natural gas kitchens sell themselves, and natural gas furnaces, water
heaters and clothes dryers offer greater efficiency and lower operating costs
than their electric counterparts.
For more information on how to use natural gas to turn prospects into
buyers, contact Eduardo Lucero at ealucero@txgas.com or (915) 680-7216.

2014 issue 5

2014 issue 5

Builders Outlook

Presidents Message |
As President I get to be involved in a variety
of ways for the Association and every now and
then we find ourselves at an intersection, a
crossroads. I think were at one now because of
the local market and how we are trying and
trying but sometimes just not getting going. You
President,
know what I mean, the market wants to move
El Paso Association
but we find that our customers are having a little
of Builders
tough time getting financed. It hurts all of us
when we have willing buyers but they just dont
qualify because of the new restrictions on
lending. I am sure that many of us have had the
customer who comes and wants to build or buy one of
our houses, enthusiasm going and everything and then boom, nothing. I think sometimes
we get caught up in the same thing, excited because were going to sell a house and forget
to slow down a little bit and get all the ducks in a row. I admit that afterall we dont want to
lose a customer so well share the excitement without really knowing if they are qualified.
Ive talked with a number of our associates who are in the mortgage business and they tell
me that sometimes they also get excited only to find out the customer cant buy right now.
Sometimes its something in the customer credit, sometimes its down payment, or
sometimes it just is simply something they cant afford. I know that as I struggled to get my
business going that I too sometimes had to step back and make sure I could do what I
wanted to do. So here we are in the start of summer looking at people, customers, who want
to buy a house and we want to sell one to them. I think we have such a good opportunity to
do that if we just take the time to make sure our customers are qualified. As a builder its
important to have a relationship with lenders who you know can help you with your
customers. Establish that relationship and get your customers qualified for your home. If
you do this youll help both of you do what you want to do, get them into one of your homes.
There is a lot of inventory out there so my advice is to make sure you do everything you can
to increase your chance of a sale. That way we can build more and help all of us do better.
Id like to congratulate the new City Manager for El Paso, Tommy Gonzalez. I look forward
to seeing and meeting with him to share some ideas and offer suggestions on how he can
help us build inside El Paso. Were working on several projects that Tommy can help us right
away. I wish him good luck with the new job. He already knows Im here to help any way I
can.
Finally I would like to thank Victor Morrison-Vega, Ron Roth and Mathew McElroy for
meeting with Ray and myself every month. Over the last few months we have had some
important breakthroughs in building inspections and environmental inspections. One of most
important was the changes in getting the roll off rule revised on construction sites, now an
approved container will do. As a member this is what we do for you and why you belong.
Seems like a small deal but I can assure you that it wasnt easy and it wouldnt have
happened if not for our members sticking together to get it done. I wish every builder was a
member and Im working hard to help get some of those outsiders in. We work together
because we need each other, fighting the good fight. My thanks to all who volunteer for us.
Keep up the good work.
Id like to wish a Happy 40th Anniversary to my wife Isela, con Amor.

ElPasoDisposal

Frank
Torres

772-7495

Showroom:
2131 Missouri
915 533 6045

fax 533 6096

Thomas R. Brown, Owner

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Builders Outlook

2014 issue 5

Perspective

Ray Adauto,
Executive
Vice President
EPAB

The Surety business area has grown in

the last few years from a few offices with
lots of rental space to more and more
rented or renovated complexes. Our own
office complex was built in 1970 and
housed the association and at one time
three other businesses. The old office was
demolished in 2007 to make way for the
office you come to now, designed to house
just the association and to have a spacious
place for meetings and seminars. With the
design came the issue of parking and how
many spaces we could negotiate with the
City of El Paso, the fire department and the
requirements for ADA. I can assure you
that many hours were spent trying to
maximize the number of spots without
making them so small that only compact
mini coopers would fit. Kind of like you find
at the Double Tree downtown. We passed
the ADA compliance officers review and we
were granted the number of spaces for use
by our building. We knew that we would
need more spaces on some days if we held
a meeting or seminar that would attract
more than the 19 spots we have. I got
permission from our member who owns the
Compass Bank building to allow us
temporary use should the need arise. We
reciprocate when they are in need. I want
you to know this because such is not the
case with our neighbors on either side of

Parking: a problem that gets worse for all of us

us. Its a battle for them because their
offices just dont have enough parking for
their employees and their visitors. Frankly
it has been the single most distracting and
frustrating part of my job to have to be the
parking lot attendant.
Ive been asked why I expend the effort
on this. All I need to do is ask you to look at
the Compass Bank parking lot and see the
result of not doing so. It has created a
problem that doesnt have a quick easy
solution, and its pitted neighbor against
neighbor. At one time there was a
motorcycle dealership on Gateway East
behind the Hyatt Hotel. The owners were
notorious for not providing their employees
parking on their own property instead
instructing them to park at the Hyatt, the
Compass bank, on the street or other
places. The traffic was a real problem for
all of us as we had to maneuver carefully
onto Surety or risk getting hit. The Hyatt
actually built a parking barrier between
them and the motorcycle shop because of
the mooching. To the right of the Hyatt is an
office complex with little or no parking, so
guess where these folks park? Then
Family Services has limited parking (to the
extent they block the sidewalk in violation
of ADA and code) and so again they block
the rear easement and park on the
Compass lot. This year the two story office

building to our right was overhauled to

accommodate a bunch of new tenants,
including an administrative office for a
health care clinic group, a radio station,
some new attorney offices and insurance
offices. The owners decided that all these
folks could be accommodated and so they
went out on a weekend and painted stripes
on their lot and proclaimed it parking. The
result has frankly not been good. Theres a
major rain storm drain located at the
southeast corner of our building. The drain
has an easement that channels water from
Surety to it. Somehow the storm water
department has allowed (or doesnt care)
that cars are now parked on the easement,
dropping oil and sludge off them and when
the runoff comes guess where it will
gothe city municipal waste treatment
plant. There are cars now parked right up
against our office wall. I have had to call
the businesses in that building on
numerous occasions to let them know a
wrecker is on the way to tow a car. What I
get from the violators is this: We dont
have anywhere else to park, and my
response is direct, and unwavering. We
even have the Porsche or SUV that loves
to block our egress and ingress between
the easement and our lot. I dont
understand that and it shows a total
disrespect for us and puts them in danger

of damage or worse, obstruction of

emergency vehicles.
So where do these folks park besides on
our lot? Used to be the street, except that
the city got proactive and came and
painted the curbs yellow, meaning no
parking. They also reinstalled no parking
signs on the north part of Surety. Compass
bank is installing fencing that blocks
access to the Reddington building and to
Surety. I think Compass is right on in trying
to solve the moocher problem, and
eventually I see a time when Compass will
actually charge to park there or restrict it to
tenants and the building visitors.
Hyatt continues to crack down on
violators to its parking lot just like us. The
signs are clearly posted to warn of towing if
you park here or there. As I told one driver
look you either move the car or the tow
truck will do it for you and they will charge
you a tow and storage, your choice. They
grumbled and cursed me as they decided
that I wasnt kidding and that the tow would
be expensive. Only time will tell if this
parking mess on Surety is ever cleaned up.
As long as there are businesses unwilling
to invest for parking, then we will do battle
each day. My hope is that it doesnt
escalate and that theyll find a solution
quickly. Im just not optimistic.

2014 issue 5

Builders Outlook

Industry News
New-Home Sales
Rise 6.4 Percent
Sales of newly built, single-family homes
rose 6.4 percent to a seasonally adjusted
annual rate of 433,000 units in April,
according to newly released data from
HUD and the U.S. Census Bureau. The
gain builds on an upward revision of sales
numbers reported for the previous month.
Builders are gradually increasing sales,
but tight credit conditions, particularly for
first-time home buyers, are impeding a
more robust recovery, said Kevin Kelly,
chairman of the National Association of
Home Builders (NAHB) and a home
builder and developer from Wilmington,
Del.
In a positive development, builders are
adding inventory in anticipation of a further
release of pent-up demand, said NAHB
Chief Economist David Crowe. We are
only about half-way back to what could be
considered a normal market, but relatively
low mortgage rates and affordable home
prices are other factors that should help
keep starts and sales on a slow upward
trajectory in the months ahead.

On a regional basis, new-home sales

rose 47.4 percent in the Midwest and 3.1
percent in the South and held steady in
the West. The Northeast posted a 26.7
percent decline.
The inventory of new homes for sale
increased to 192,000 units in April. This is
a 5.3-month supply at the current sales
pace.

Builder Confidence
Remains Steady
Builder confidence in the market for
newly built, single-family homes in May fell
one point to 45 from a downwardly revised
April reading of 46 on the National
Association of Home Builders/Wells Fargo
Housing Market Index (HMI) released
today.
After four months in which the HMI has
shown little signs of fluctuation, it is clear
that builder sentiment is becoming more in
line with the market reality of a continuing

but modest recovery, said NAHB

Chairman Kevin Kelly, a home builder and
developer from Wilmington, Del. However,
builders expressed some optimism that
sales will pick up in the coming months.
Builders are waiting for consumers to
feel more secure about their financial
situation, said NAHB Chief Economist
David Crowe. Once job growth becomes
more consistent, consumers will return to
the market in larger numbers and that will
boost builder confidence.
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 for 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.
The indexs components were mixed in
May. The component gauging sales
expectations in the next six months rose
one

A W A R D E D

TEXAS BUILD E R O F THE Y E AR

2013

We build so you can GROW

point to 57 and the component measuring

buyer traffic increased two points to 33.
The component gauging current sales
conditions fell two points to 48.
Looking at the three-month moving
averages for regional HMI scores, the
South rose one point to 48 while the
Midwest fell a single point to 47 and the
West posted a four-point drop to 47. The
Northeast held steady at 33.

Housing Affordability
Edges Higher
Slightly lower median home prices along
with steady mortgage rates contributed to
higher housing affordability in the first
quarter, according to the National
Association of Home Builders/Wells Fargo
Housing Opportunity Index (HOI), released
today.
In all, 65.5 percent of new and existing
homes sold between the beginning of
January and end of March were affordable
to families earning the U.S. median
income of $63,900. This is slightly higher
from the 64.7 percent of homes sold that
were affordable to median-income earners
in the fourth quarter.
Meanwhile, the national median home
price dipped from $205,000 in the fourth
quarter to $195,000 in the first quarter
while average mortgage interest rates
were virtually unchanged, moving from
4.54 percent to 4.57 percent in the same
period.
Housing affordability remains strong
and this is an encouraging sign as the
spring home building season moves into
high gear, said NAHB Chairman Kevin
Kelly, a home builder and developer from
Wilmington, Del.
As home prices and mortgage interest
rates are unlikely to go down, the first
quarter HOI is another indicator that this is
an opportune time to buy, said NAHB
Chief Economist David Crowe.
Syracuse, N.Y. was the nations most
affordable major housing market, as 93.7
percent
of all new and existing homes sold in
this years first quarter were affordable to
families earning the areas median income
of $67,700. Meanwhile, Cumberland, MdW.Va. claimed the title of most affordable
smaller market, with 96.3 percent of
homes sold in the first 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 first
quarter included Buffalo-Niagara Falls,
N.Y.; Youngstown-Warren-Boardman,
Ohio-Pa.; Harrisburg-Carlisle, Pa.; and
Dayton, Ohio; in descending order.
Smaller markets joining Cumberland at
the top of the affordability chart included
Springfield, Ohio; Kokomo, Ind.; Mansfield,
Ohio; and Lima, Ohio.
For a sixth consecutive quarter, San
Francisco-San Mateo-Redwood City, Calif.
held the lowest spot among major markets
on the affordability chart. There, just 13.3
percent of homes sold in the first quarter
were affordable to families earning the
areas median income of $100,400.
Other major metros at the bottom of the
affordability chart included Santa AnaAnaheim-Irvine, Calif.; Los Angeles-Long
Beach-Glendale, Calif.; New York-White
Plains-Wayne, N.Y.-N.J.; and San JoseSunnyvale-Santa Clara, Calif.; in
descending order.
All of the five least affordable small
housing markets were in California. At the
very bottom of the affordability chart was
Santa Cruz-Watsonville, where 21.1
percent of all new and existing homes sold
were affordable to families earning the
areas median income of $77,900. Other
small markets at the lowest end of the
affordability scale included Napa, Salinas,
San Luis Obispo-Paso Robles, and Santa
Rosa-Petaluma, respectively.

Builders Outlook

2014 issue 5

FDIC-Insured Institutions Earned $37.2 Billion in the First Quarter

Commercial banks and savings institutions
insured by the Federal Deposit Insurance
Corporation (FDIC) reported aggregate net
income of $37.2 billion in the first quarter of
2014, down $3.1 billion (7.6 percent) from
earnings of $40.3 billion the industry reported a
year earlier. The decline in earnings was mainly
attributable to a $7.1 billion (10.7 percent)
decline in noninterest income. Lower income
from reduced mortgage activity and a drop in
trading revenue contributed to a year-over-year
decline in noninterest income. Additionally,
noninterest income was higher one year ago due
to a one-time gain at one institution. Despite the
decline in earnings, more than half of the 6,730
insured institutions reporting (54 percent) had
year-over-year growth in quarterly earnings. The
proportion of banks that were unprofitable during
the first quarter fell to 7.3 percent from 8.5
percent a year earlier.
"We saw further improvement in the condition
of the banking industry in the first quarter," said
FDIC Chairman Martin J. Gruenberg. "Asset
quality continues to improve, loan balances are
trending up, fewer institutions are unprofitable,
and the number of problem banks continues to
decline. However, industry revenue has been
affected by narrow margins, modest loan growth,
and a decline in noninterest income as higher
interest rates have reduced mortgage-related
activity and trading income fell."
Asset quality indicators continued to show
improvement as insured banks and thrifts
charged off $10.4 billion in uncollectible loans
during the quarter, down $5.5 billion (34.8
percent) from a year earlier. The amount of
noncurrent loans and leases (those 90 days or
more past due or in nonaccrual status) fell by
$12.1 billion (5.8 percent) during the quarter. The
percentage of loans and leases that were
noncurrent declined to 2.46 percent, the lowest
level since the 2.35 percent posted at the end of
third quarter 2008.
Total loan and lease balances rose by $37.8
billion (0.5 percent) in the first quarter to $7.9
trillion. Credit card balances posted a seasonal
decline and banks continued to reduce their
inventories of mortgage loans held for sale, but
most other loan categories registered modest
growth. Over the last 12 months, loan and lease
balances increased by 3.6 percent, the highest
12-month growth rate since before the recent
financial crisis.

Despite the overall growth in loan and lease

balances, income from mortgage-related activity
remained well below the level of a year earlier.
Noninterest income from the sale, securitization
and servicing of mortgages was $4.0 billion (53.6
percent) lower than a year ago. One- to fourfamily residential real estate loans originated and
intended for sale were $323.6 billion (70.6
percent) lower than in the first quarter of 2013,
as rising interest rates in the second quarter of
2013 reduced the demand for mortgage
refinancings. Realized gains on available-for-sale
securities also were lower than a year ago, as
higher medium- and long-term interest rates
reduced the market values of fixed-rate
securities. Banks reported $827 million in pretax
income from realized gains in the first quarter, a
decline of $1.2 billion (60.1 percent) from the first
quarter of 2013.
First quarter net operating revenue (the sum
of net interest income and total noninterest
income) of $163.7 billion was $6.7 billion (4.0
percent) lower than a year earlier, as a $361
million (0.3 percent) increase in net interest
income was outweighed by the drop in
noninterest income. The average net interest
margin (the difference between the average
yield banks earn on loans and other
investments and the average cost of funding
those investments) was 3.17 percent, the
lowest since the third quarter of 1989 as
declining asset yields at larger institutions
outpaced the decline in the cost of funds.
Total noninterest expense was $18 million
(0.02 percent) lower than in the first quarter of
2013, as payroll expenses fell by $579 million
(1.2 percent). Banks set aside $7.6 billion in
provisions for loan losses, a reduction of $3.3
billion (30.3 percent) compared to a year earlier.
This is the 18th consecutive quarter that the
industry has reported a year-over-year decline
in quarterly loss provisions.
The average return on assets (ROA) fell to
1.01 percent in the first quarter from 1.12
percent a year earlier and the average return on
equity (ROE) fell to 8.99 percent from 9.96
percent.
Financial results for the first quarter of 2014
are contained in the FDIC's latest Quarterly
Banking Profile, which was released today. Also
among the findings:
Community banks earned $4.4 billion during
the quarter. The FDIC has

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added a new section to the Quarterly Banking

Profile that reports on the performance of
community banks those institutions that provide
traditional, relationship-based banking services in
their local communities. Based on criteria
developed for the FDIC Community Banking
Study published in December 2012, there were
6,234 community banks (93 percent of all FDICinsured institutions) in the first quarter of 2014
with assets of $2.0 trillion (14 percent of industry
assets). Although net income at community
banks of $4.4 billion was down $67 million (1.5
percent) from a year earlier, the percentage
decline was far less than the 7.6 percent decline
in earnings reported by the industry. The report
also finds that loan balances at community banks
grew at a faster pace than the industry, asset
quality indicators continued to show
improvement, and community banks accounted
for 45 percent of small loans to businesses.
The number of "problem banks" fell for the
12th consecutive quarter. The number of banks

on the FDIC's "Problem List" declined from 467

to 411 during the quarter. The number of
"problem" banks now is less than half the postcrisis high of 888 at the end of the first quarter of
2011. Five FDIC-insured institutions failed in the
first quarter.
The Deposit Insurance Fund (DIF) balance
continued to increase. The DIF balance (the net
worth of the Fund) rose to $48.9 billion as of
March 31 from $47.2 billion at year-end 2013.
Assessment income was the primary contributor
to the growth in the Fund balance. Estimated
insured deposits increased 1.9 percent, and the
DIF reserve ratio (the Fund balance as a
percentage of estimated insured deposits) rose
to 0.80 percent as of March 31 from 0.79 percent
at the end of 2013. A year ago, the DIF reserve
ratio was 0.60 percent. By law, the DIF must
achieve a minimum reserve ratio of 1.35 percent
by 2020.

2014 ISSUE 5

Builders

Builders Outlook

utlook on the scene |

Young Designer
scholarship contest
brings 23 entries

The annual El Paso Association of Builders

Young Designer scholarship contest was
judged in May and the winners came from
both the Socorro and El Paso Independent
School Districts. Twenty three models and
plans were judged by members of the
association over a week long time frame.
The contest is held annually to support high
school students wishing to advance in their
education in either college or at trade school.
The students are given a problem at the
beginning of the school year and they work
their way to the judging in May. This year the
problem was about grandparents who are
downsizing from a 10,000 square foot home
to a more modest 3,000 square foot model
with specific features and client requests.
Each student took the problem and worked
around the requirements mentioned in the
problem. From the start there were some
works that clearly met the criteria and some
that didnt. it was the job of the judges to
review each entry to assure that those
criteria were met and points were awarded to
each review. The judges are never told the
identity of the student, male or female, age,
or classification. The plans and the models
only had an identifying number and the
judging was done using that number. Only
after the totals are tallied and results
presented to the teachers do we find out who
the students are and what school they
represent. This years top three winners are
Juan Carlos Gutierrez, a junior at El Dorado
High School in first place; second place went
to Jose Gallegos, a senior and third went to
Jesus Flores, also a senior both representing
the El Paso ISD. Juan Carlos receives a
$1250 scholarship while Jose gets $750 and
Jesus gets $500. Each student is given the
money through the Financial Aid office
wherever they attend at the next level. If, like
in the case of Juan Carlos a high school
junior wins then the money is held in reserve
until he graduates and goes to his choice of
school.
The El Paso Association of Builders has a
fund with the El Paso Community Foundation
that funds the scholarships. Presentation of
the awards was made by John Chaney,
Chairman of the Young Designer program.
Our thanks to all the judges, including Kelly
Sorenson, Ryan Harding, Edmundo Dena,
Edgar Montiel, Walter Lujan and Ray Adauto.
Our thanks also to the teachers who worked
so hard for their students: Cecilia Orozco
(EPISD); Lynn Cordova (Socorro High) and
Luisa Valenzuela (El Dorado). Ms. Cordova
is retiring at Socorro and will be missed by
both her students and our YD family.

7
See more photos of this event on page 14

el paso development news

Downtown:
Digital Wall to Be Housed in Protective Pavilion
The project to bring the countrys first
TouchCity Digital Wall to the El Paso
Museum of History took another step forward recently when officials chose the
tentative design for a pavilion that will
protect the new installation.
Designed by MNK Architects of El
Paso (www.mnkarchitects.com), the
1,661 square foot pavilion features a protective roof with distinctive angles, new
signage for the museum and the Digital
Wall, and materials that both distinguish
it and marry it to the existing building. In
effect, it will serve as an entrance plaza
to the Museums exhibit spaces.
The Digital Wall itself will be attached
to the south-facing wall of the museum
building, to the west of the existing
entrance doors. The five screens that
make up the Digital Wall will be enclosed
in an insulated structure, supplied by
EuropTec USA of West Virginia, a company specializing in anti-glare glass.
The protective glass will actually float
above the screens, allowing a 1/8 of an
inch gap of air. It will have a LUXAR
antireflective coating to lessen glare, and

Mixed-Use
Apartments
Proposed for
West El Paso
Two Four-Story Buildings to Include
Housing, Commercial Spaces

will include an easy-to-clean treatment

that will lessen effects of fingerprints
from users. Dust-proof enclosures will
protect HyperSound speakers from dust.
Gibson Group of New Zealand, the
production firm that created the
TouchCity Digital Wall, describes it as a
giant interactive kiosk designed to give
a wide public audience on the streets
direct and playful access to their museums collections, and to add their own
material in real time. The touch screens
allow users to explore maps using
images and videos from both the museums they serve and the public.
Museum officials have opted not to
enclose the pavilion in order to make the
Digital Wall a more inviting feature to
passersby. A set of angled columns dive
down from the ceiling and meet at a single point, a circular bench on the western edge of the pavilion. A cantilevered
roof will float over the pathway on the
same side.
This was designed for El Paso, says
Rene Jimnez, AIA, President and CEO
of MNK Architects, and by El Paso,
A rezoning application with the City
Plan Commission reveals a mixed-use
apartment complex planned for West El
Paso. Two four-story buildings will make
up the project, located on De Leon Drive,
just off North Mesa Street.
The project includes a total of 16 apartments, including 12 two-bedroom and four
one-bedroom units, spread between both
buildings. The apartments comprise a
total area of 16,064 square feet.
Another 3,210 square feet will be dedicated to retail space on the ground floor
of each building. A total of three retail
spaces will be available.

A 1,661 square foot pavilion will protect the future TouchCity Digital Wall and its
users at the El Paso Museum of History. (Courtesy MNK Architects)

referring to the hand the local firm has

had in creating the innovative design.
Its about who the project is for.
Jennifer Matthews, AIA, Principal at
MNK adds, Youre bringing consultants
and ideas from out of town, but its being
built by local architects and engineers.
Plans are also in the works for a
mobile unit that will travel to functions
through the city, such as schools and
events, and will be a miniature version of
the Digital Wall at the Museum of
A reduction of 40% of the parking
requirement will be requested as part of
the application; a project of this size
requires 43 parking spaces in Residential
Mixed Use zoning, while only 26 are proposed. According to the application, a traffic study has shown that there are 71
spaces within a 300 foot radius of the
property.
The surrounding area has a mix of
uses, including single-family homes, multifamily apartments, and commercial properties. The recently completed FiestaBalboa pocket park is also nearby.
The Planning Division is recommending

History. The idea is still in the early

stages, but the tentative plan is to have a
72-inch mobile screen that will have the
same type of 3-D map software planned
for the Museum.
Officials hope to have the Digital Wall
project completed at the El Paso
Museum of History by December 2014.

approval of the rezoning application for

the property, which is located at 2 De
Leon Drive. The City Plan Commission
with consider the item at the April 24,
2014 meeting.

Loop 375 Northwest Freeway Nearly Complete

Contractor Lists Mid-May as Possible Opening Date for Transmountain Expansion

Direct connectors will take drivers to and

from Loop 375 in West El Paso.
(www.sundt.com)

Planned Campbell
Apartments
Pictured In
Rendering

Transmountain Road on El Pasos

West Side is the latest portion of Loop
375 to see expansion, and the contractor
on the project has indicated that the new
freeway could open as soon as this
month. The 3.5 mile project stretches
from Interstate 10 to the Franklin
Mountains State Park entrance.
The opening date was indicated in a
recent blog post at the website of Sundt
Construction (www.sundt.com), the contractor based in Tempe, Arizona. Sundt
began construction in the fall of 2012.
The project includes two direct connec-

tor ramps to and from I-10, as well as

construction of four main lanes on Loop
375, two in each direction. New frontage
roads run alongside the freeway lanes,
and four overpasses have been built over
crossing surface streets. Hiking and biking trails were also constructed on each
side of the freeway.
Sundts blog post was created in
March and indicated that landscaping
was 70 percent complete at the time,
while overhead sign structures were
already in place.
Whats left before the project is com-

plete in mid-May? Traffic signalization,

electrical work below some of the
bridges, and asphalt paving, the blog
adds.
Construction is ending at the same
time work is nearly complete on the Loop
375 main lanes in Northeast El Paso.
Those lanes opened to traffic last month.
When all the lanes are opened in the
coming weeks, commuters will be able to
travel on Loop 375 from I-10 in West El
Paso to I-10 in Far East El Paso without
stopping.

A concept rendering of the Campbell

Apartments, a 88-unit mixed use project
planned for a neighborhood near
Downtown El Paso, has been posted at
the website of the architectural firm
behind the design, EXIGO Architecture.
The rendering includes four levels, which
was the original design. The latest plan
includes a fifth level of apartments.
(www.exigoarch.com

Content provided by
El Paso Development News
visit: elpasodevnews.com

Builders Outlook Issue 5.2014

SmartCode
Project Requests
12-Month
Extension
City to Consider 2nd
Amendment to Aldea El
Paso Agreement
The second massive SmartCode project planned for West El Paso will have
12 more months to begin construction on
its 204-acre development, the second
time the developer requests a one-year
extension.
The developer, Geltmore, LLC of
Albuquerque, still has not complied with
one item out of five required by the
Chapter 380 incentives agreement it
signed with the City of El Paso in 2011.
Geltmore must get Texas Department of
Transportation (TXDOT) approval for the

Interstate 10 frontage road and interchange that will provide access to the
development.
The western portion of Aldea runs
adjacent to I-10, and an interchange will
be created where the future Mesa Park
Boulevard crosses over the freeway. A
frontage road will connect Mesa Park to
Executive Center Boulevard.
In July of last year, the effort to make
the frontage road/interchange project a
reality gained some steam. The Camino
Real Regional Mobility Authority
(CRRMA) helped develop an agreement
between TXDOT, Geltmore, and the City
of El Paso to help the project move forward. Walmart Stores, which owns portions of the property and plans to open a
location within the development, was also
included in the agreement.
And the project was also listed in the
2013 El Paso County Comprehensive
Mobility Plan as one of 16 projects slated
to start in the coming years. The CRRMA
is also helping to oversee the projects
listed in that Plan. It lists the $25 million
interchange/frontage road project as possibly beginning in late 2014.
Aldea El Paso will be developed to
SmartCode standards and will create

over one million square feet of retail and

entertainment space, 250,000 square
feet of office space, and 350 rooms
between two hotels. A mix of housing
options will make up 1,245 residential
units.
It will have 3,300 feet of I-10 frontage

and will connect to the Montecillo

SmartCode development immediately to
the north, which is already under construction.
Geltmore will have until May 2015 to
begin construction on the Aldea El Paso
project.

El Paso Looks to Revamp Street Design Guidelines

City Adopts Bike, Pedestrian Friendly Layouts for Roadways
The City-owned streets in El Paso may
look very different in the future now that
City Council has adopted new design
guides for roadway planning. City
Representatives approved incorporating
the Urban Street Design Guide and
Urban Bikeway Design Guide as official
design guidelines for bicycle facility and
other city funded street and roadway
improvement projects. Both guides were
developed by the National Association of
City Transportation Officials (NACTO).
According to NACTOs website
(nacto.org), the Urban Street Design
Guide helps cities make streets safer,
more livable, and more economically
vibrant. NACTO sees streets as having
an ever-expanding set of needs and not
simply as traffic corridors, with an emphasis on accommodating all modes of movement including vehicles, bicycles, transit,
and pedestrians. As the website stresses,
streets make up 80 percent of public
space.
The street design guide recommends
design elements for different types of
potential thoroughfares through a city,

including Downtown streets, neighborhood streets, boulevards, and alleys. It

looks at design elements within each
street type, including lane width, sidewalks, curbs, bus lanes, bike lanes, and
stormwater management.
Many illustrations throughout the guide
show how El Paso streets could possibly
look if improved to follow the new design
principles. Streets like Montwood Drive,
Mesa Street, Dyer Street, and Alameda
Avenue would look completely different
with elements like active medians, raised
bike lanes, and curb extensions.
The guide is divided into several chapters, including one that specifically looks
at intersections. The design of intersections, according to the guide, can help
bring people together and invigorate a
city, while making traffic more intuitive,
seamless, and predictable for those passing through.
NACTOs Urban Bikeway Design
Guide delves deeper into creating welldesigned streets for bicycle traffic. The
guide looks at specific design elements in
different sections, including bike lanes,

intersections, signs and markings, cycle

tracks (bike lanes physically separated
from vehicle lanes), signals, and bicycle
boulevards (streets that give bicyclists
travel priority).
NACTO is a non-profit coalition of city
transportation departments based in New
York. Founded in 1996, its goal is to raise
the state of the practice for street design
and transportation by building a common
vision, sharing data, peer-to-peer

exchange in workshops and conferences,

and regular communication among member cities.
Earlier this year, the El Paso City
Council asked staff to develop a resolution adopting both guides as the official
guidelines for bicycle and street improvement projects within the city. City Council
adopted the resolution at its May 20, 2014
meeting.

Moves Made on Large Northeast El Paso Property

Owner Seeks Commercial Zone for 35-Acre Development
El Pasos City Council will hear an
agenda item this week on a large tract
of land in Northeast El Paso that could
potentially bring a sizeable shopping
center to the area. The developer is
seeking to change the zoning to commercial to allow for retail and office
uses.
The property, located on the southeast corner of US-54 and McCombs
Street, sits on 35 acres of undeveloped
land and is adjacent to the Northeast
Regional Park. The site plan included
in the rezoning application shows several retail and office buildings of various sizes in a mostly traditional suburban shopping center layout.
None of the buildings include any
possible tenant names, though the
largest building is labeled as
Superstore. Some of the buildings
labeled as Retail may in fact be used

for restaurant space. The site plan will

also most likely see changes as eventual groundbreaking nears.
The property is actually made up of
two parcels, the smaller of which will
be zoned as C-2 (Commercial), a lower
density zoning due to the adjacent
neighborhood to the south. The larger
parcel is seeking C-3 zoning along US54.
The City received on letter in opposition to the application, from residents
in the nearby neighborhood who are
afraid the shopping center will result in
increased traffic and crime.
EP Plaza Partners is listed as the
property owner, though the site plan
was prepared for Mimco, Inc., the large
shopping center operator. City Council
will consider the rezoning application at
its May 20, 2014 meeting.

10

Builders Outlook

2014 issue 5

Expert Advice

Measuring
Energy
Efficiency
By Javier Ruiz
Border Solar

Editors Note: In the continuing search for the

savings in energy and the confusion of what is
energy efficient weve asked our Energy expert
Javier Ruiz for his take. He provided Builders
Outlook with this very informed piece from
RESNET.com

A major problem faced by homebuyers

today is calculating the true affordability of
homes they want to buy. Consumers are
increasingly aware that outside of the
home loan, the highest cost of buying a
home today is its energy consumption.
However, the blatant lack of transparency
in the housing market makes it difficult for
consumers to comparison-shop for
homes based on energy performance, the
way they can for cars, appliances and
electronics. This directly hampers their
ability to make informed decisions when
buying a home. The solution to this
problem is the Home Energy Rating
System (HERS) Index, which introduces
transparency to the home buying process
by grading homes based on their energy
performance.
What is the HERS Index?
Developed by the Residential Energy
Services Network (RESNET) and
introduced in 2006, the HERS Index is the
industry standard by which a homes
energy efficiency is measured.
HERS Index scores are recognized as
an official verification of energy
performance by government agencies
such as the Department of Energy (DOE),
Department of Housing and Urban
Development
(HUD)
and
the
Environmental Protection Agency (EPA).
A HERS Index Score is determined by
an energy rating, which is a
comprehensive
home
energy
performance assessment. The data is
compared against a reference home a
design modeled home of the same size
and shape as the actual home, so the
HERS Index Score is always relative to
the size, shape and type of house being
rated.
The reference home conforms to the
2006 International Energy Conservation
Code (IECC) and meets the minimum
requirements to be deemed energy
efficient. The reference home has a
HERS Index Score of 100.
Homes with HERS Index scores of 100
or lower are rated as being energy
efficient. Those with scores above 100
arent. The lower the score, the more
energy efficient the home.
The HERS Index Score: MPG Sticker
for Homes
The HERS Index Score makes it easy
for consumers to comparison-shop for
energy efficient homes and identify the
ones they can afford to buy. Similar to the
auto industrys miles-per-gallon (MPG)
stickers for new cars, and Energy Guide
labels for appliances, HERS Index scores
help homebuyers make better-informed
decisions about the homes they want to
buy.
How to Know a Homes HERS Index
Score

Look for a RESNET EnergySmart

Builder. Due to the rising demand for
energy efficient homes, increasing
numbers of builders are committing to
having their homes rated for energy
performance and using HERS Index
scores to market them.
Multiple listing services in many states
have started creating green categories
specifically for energy efficient homes.
Some of these, like the Gainesville,
Florida MLS and MLSs in Colorado for
example, list HERS Index scores as part
a homes energy efficient features.
Another way to find out about a homes
HERS Index Score is to simply ask the
builder or homeowner for it. If they dont
already have one, they can contact a
certified RESNET Home Energy Rater to
get a comprehensive HERS rating, and a
HERS Index Score.
By enabling consumers to more easily
identify energy efficient homes, HERS
Index scores help them make better
informed buying decisions. Talk to a
certified RESNET Home Energy Rater to
learn more about the HERS Index and its
value to homeowners and buyers.

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2014 issue 5

11

Builders Outlook

Lowe's to Pay Record $500K Penalty Over Subs' Lead-Paint Rule Violations
EPA cites job practice and recordkeeping infractions by contractors that Lowe's uses
By: Craig Web, editor-in-chief of REMODELING

Environmental Protection Agency In midJanuary, the EPA sent this RRP rule
postcard to 540,000 contractors by mail and
electronically.
Lowe's Home Centers will pay a record
$500,000 civil penalty to settle allegations
that contractors it hired for home projects
violated the federal Lead Renovation,
Repair, and Painting ( RRP) rule, the Justice
Department and Environmental Protection
Agency (EPA) announced today.
The penalty--by far the largest ever
imposed for an RRP violation--stems from
investigations at 13 of Lowe's 1,700 stories
nationwide in which EPA reviewed records
from projects performed by companies
working under contract to Lowe's. ( See
details.)
"The government complaint alleged that
Lowes failed to provide documentation
showing that specific contractors had been
certified by EPA, had been properly trained,
had used lead-safe work practices, or had
correctly used EPA-approved lead test kits
at renovation sites," EPA said in a news
release. "Additionally, EPAs investigation
found that Lowes had also failed to ensure
that work areas had been properly
contained and cleaned during renovations
at three homes."
A Lowes spokeperson stressed to
REMODELING in a telephone interview that
the big-box retailer "has had an aggressive
lead-based paint renovation compliance
program in place since the EPAs Lead
Renovation, Repair and Painting Rule went
into effect. There have never been any
reports of lead-based paint health issues

associated with any projects completed by

Lowes contractors." The government's
complaints mainly involved paperwork, she
said, stating: "Lowes hires thousands of
independent, third-party contractors and the
EPA identified only a few who failed to meet
certain recordkeeping or work practice
requirements regarding lead-based paint.
Lowes cooperated with the EPA and has
resolved all issues alleged by the EPA."
As part of its settlement, Lowe's must
institute "a robust, nationwide program" to
ensure its contractors are properly certified
to do renovations in areas where lead paint
might be present and to adhere to practices
that minimize lead contamination in
customers' homes. That program includes a
checklist that contractors must follow to
assure they follow-lead safe practices.
Contractors won't get paid until they
complete the checklist, an EPA official said.
Today's announcement is the first of its
kind to address lead safe work practices on
a system-wide basis and "will help prevent
childrens exposure to lead in communities
across the nation by raising home
improvement contractors awareness of
EPAs lead safety regulations and
contributing
to
a
culture
of
compliance, Robert G. Dreher, acting
assistant attorney general for the Justice
Departments Environment and Natural
Resources Division, was quoted as saying.
Use of lead paint in homes was banned in
1978 because it was found to damage the
health
of
residents,
particularly
developmental disabilities and behavioral
disorders--even seizures and death--mainly
involving infants, small children, and the
elderly. The RRP rule seeks to minimize the

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Protection Agency (EPA) rules for doing

renovations that could disturb lead paint.
That news followed another recent
settlement in which two firms paid fines
totaling $14,455 to settle allegations
involving a project in Maine, as well as
EPA's announcement that it was sending
lettersto 200 home renovation and painting
contractors in Connecticut about a planned
"compliance assistance and enforcement
initiative."
Most RRP-related enforcement activity
has been in New England, but the Lowe's
investigation was nationwide. The Lowes
stores that EPA checked were in Alton, Ill.;
Kent and Trotwood, Ohio; Bedford, N.H.;
Southington, Conn.; South Burlington, Vt.;
Rochester, N.Y.; Savannah and Lebanon,
Tenn.; Boise, Idaho Falls, and Nampa,
Idaho; and Muldoon, Ark.

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harms that could come when lead paint on

the walls is disturbed during renovation
projects.
Todays settlement sends a clear
message to all contractors and the firms
they hire: Get lead certified and comply with
the law to protect children from exposure to
dangerous lead dust, Cynthia Giles,
assistant administrator for EPAs Office of
Enforcement and Compliance Assurance,
said in the EPA news release. Lowe's is
taking responsibility for the actions of the
firms it hires, and EPA expects other
contractors to do the same.
"Big-box home improvement dealers are
responsible for the contractors they hire,"
Dreyer declared during a teleconference
with reporters.
Today's announcement comes two days
after EPA's Boston office announced that
four New England firms will pay penalties
ranging from $2,200 to $30,000 to settle
allegations they violated Environmental

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12

Builders Outlook

2014 issue 5

Expert Advice
IRS Clarifies Employer
Reporting Requirements

Joe Bernal
Employee Benefits
of ElPaso

Builders

In 2015, Affordable Care Act reporting

requirements will begin to phase in for
employers with 50 or more full-time
equivalent employees. The statute calls for
employers, insurers and other reporting
entities to report information to the IRS.
Employers with 100 or more employees must
offer affordable health insurance coverage to
employees or make a shared responsibility
payment; employers with 50-99 employees
have received a one-year reprieve (until 2016)
from the coverage mandate.
IRC Section 6055 applies to health insurers
and employers that self-insure. They must
provide information about the entity

providing coverage, including contact

information, and which individuals are
enrolled in coverage, with identifying
information and the months for which they
were covered. IRC Section 6056 applies to
employers that must play or pay but that do
not self-insure. They must provide
information about the employer offering
coverage, including contact information and
the number of full-time employees. For each
full-time employee, they must also provide
information about the coverage (if any)
offered to the employee, by month, including
the lowest employee cost of self-only
coverage offered. In March, the IRS released
final regulations on information reporting by
those employers. The regulations will
substantially streamline employer reporting
requirements by providing for a single,

utlook on the scene |

Speed Net does it

again, lots of
business done
Reputation is everything in business and
frankly the Speed Networking event at the
EPAB is one of the best things we do. It has a
reputation for hooking up vendor and buyer
and so it was this month when the association
hosted thirteen builders and fifteen vendors.
Some first time vendor members were
impressed and told the Outlook how much so.
I belong to several other home builder
associations and frankly none of them has
done this event, said Chuck Haskins of
Haskins Electric. I cant believe that we have
had the opportunity to meet so many builders in
one swoop, something that we havent had a
chance to do at the other associations and
frankly this was great, Haskins continued.
Chuck had traveled from Phoenix to be here
but he wasnt the only member from out of town
that came. As a matter of fact the honor of
longest distance to attend a Speed Net went to
Alex Zarrin, of Pacific Door Design from San
Diego, California. He also had high praise for
the event. When I asked Ray what this was
about he said that it would be interesting, fun
and a good event to get to meet builders at,
Ray was a little off because he forgot to tell me
that Id be surrounded by some great members
as well, Zarrin said. When we asked both of
our new members if this met their expectations
both were quick to answer with a resounding
yes. I cant begin to tell you how valuable this
is to us as new guys in the area, but here we
were welcomed and I made some good
contacts, something that would have taken me
a lot longer to do without Speed Networking,
said Haskins.
On the builder side the feeling was mutual. I
got to spend a little more time with each vendor
this time and I think that really helped me get
some more information and be better
informed, said Frank Torres. He went on to tell
the Outlook that he had heard vendors say the
same thing. As a matter of fact Frank got a
deal that he needed right away and picked up
some merchandise from El Paso Winnelson
the next day. We had a terrific time, said
Rene Goldfien from El Paso Winnelson.
Edmundo Dena also got some contacts and
had an opportunity to sit with some of his
suppliers and learn about new stuff. There
hasnt been a Speed Networking where we
didnt find something new or better, and I tell
my suppliers that they better be here or Ill
might find a competitor waiting for my
business,. Our thanks to all the Associate
members who displayed at the first Speed
Networking of 2014, and to the builder
members who came and represented
themselves. Each one of the builders, and in
this case a few of the Associates, took home a
$50 gift card as thanks for coming to the event.

consolidated form that employers will use to

report to the IRS and employees under both
sections 6055 and 6056, thereby simplifying
the process and avoiding duplicative
reporting.
Self-insured employers will complete both
sections of the form.
Employers that do not self-insure will
complete only the top section of the form
(reporting for section 6056).
Reporting requirements do not apply to
employers with fewer than 50 full-time
equivalent employees, who are exempt from
the ACAs requirements.
For more information contact
Joe Bernal
joe@employeebenefitsep.com
915-542-0900

2014 Issue 5

13

Builders Outlook

www.elpasobuilders.com
www.epbuilders.org

Membership News
UPCOMING EVENTS |
JUNE 11
BOARD AND GENERAL MEETING
EL PASO CLUB

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915-730-5000

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14

Builders Outlook

2014 issue 5

Associates Council

Sam Shallenberger
Western Wholesale Supply

Associates participated in the Speed

Networking in a big way. Id like to
thank those who came and had a really
good event. Border Solar, Dorney
Security, El Paso Winnelson, EP Mass
Media, First Light FCU, Haskins
Electric, Lone Star Title, Mechanical
Technologies, New Era Spray Foam,
Pacific Door Design, Stewart Title, Sun
City Spray Foam, Carpets West and my
company Western Wholesale Supply.
Im sure that there were some others
who wanted to be there but the timing
wasnt right for them. Were working on

some other neat events that will allow

more of you to participate with us.
Were looking to do something
different for our summer time event and
we cant announce it yet because it
would spoil the surprise. Also coming
soon
will
be
the
much
anticipated.wait I cant tell you about
that either. Sorry, guess youll have to
wait to see what weve got planned.
With the summer heat coming on I want
to make sure that everyone remembers
to hydrate and stay covered from the
sun. I can tell you that every year we

see too many of our friends and family

discover that a little protection from the
sun would have helped. Dont be a
statistic, cover up and use maximum
SPF sunscreen. Congratulations again
to the winners of the Young Designers
scholarship. These young people give
us hope that all isnt lost. Well see you
at the next General meeting and
around town.

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building industry
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Builders

utlook

www.elpasobuilders.com
www.epbuilders.org
6046 Surety Dr. El Paso, TX 79905
915-778-5387 Fax: 915-772-3038
execuTive oFFicerS
FrankTorres 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/commiTTeecHAirS
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
Womens council
Lorraine Huit
ADviSorYToTHeBoArD
J. Crawford Kerr, Attorney, Firth, Johnston
& Martinez
BoArDoFDirecTorS
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

TABSTATe 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

2013 Builder member of The Year

Edmundo Dena
Accent Homes
2013 Pat cox Award
Sam Shallenberger
Western Wholesale Supply
2013 Associate of The Year
WestStar 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
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

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 Builders Outlook
is published and distributed for the
El Paso Association of Builders
by Ted Escobedo, Snappy Publishing
ted@snappypublishing.com
El Paso Texas 79912 915-820-2800