Builders Outlook Feb 2012

Issue 2 2012 Building El Paso’s tomorrow todayTM

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Builders Outlook

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www.elpasobuilders.com

Obama addresses housing in State of the Union Address

During his State of the Union

address to the nation on Jan.

24, President Obama focused

part of his speech on housing issues,

offering a proposal to help families stay

in their homes and stem the tide of

foreclosures.

“President Obama’s refinancing plan

offers an opportunity for continued

exploration of ways to aid struggling

home owners and tackle the foreclosure

crisis,” said NAHB Chairman Bob

Nielsen.

“We look forward to working with

the White House and Congress to tackle

this issue and continue to make

progress on foreclosures that are

hampering the housing market,” he

said.

Nielsen also reminded the media and

public office seekers of the critical

importance that Americans continue to

place on the dream of homeownership,

and called on policymakers to reopen

the lines of credit for builders and

buyers alike in order to create jobs and

further stabilize housing and the

economy.

“In this election year, voters will be

looking closely at President Obama, the

GOP presidential contenders and

congressional candidates from both

political parties to determine how they

plan to put housing and the economy

back on track,” said Nielsen.

“How the candidates respond will

decide not only their political fate but

the economic prospects of most

Americans,” he said.

Coverage of the President’s speech

by The Hill included a story on his

proposal to help ease foreclosures and

discussed NAHB’s positions on

housing extensively.

“The group's main priority is on the

lending front — home builders are

urging Congress and federal regulators

to figure out a way to get credit moving

again for builders so they can start

projects in markets where new housing

stock is needed, and for home owners,”

the article said.

In an article focusing on the

President’s refinancing proposals in his

State of the Union address and how the

industry is looking for the White House

to do more for housing, the

Philadelphia Inquirer cited NAHB

Chairman Bob Nielsen.

“National Association of Home

Builders Chairman Bob Nielsen

applauded Obama’s statement that

‘there has never been a better time to

build,’ but he added that wouldn’t be

possible without easing credit for the

group’s members and buyers,” the story

said.

A Response From the Home

Builders Institute

John Courson,

president and CEO

of the Home

Builders Institute

(HBI), also

commented on the

State of the Union

r e m a r k s ,

commending the

President’s call to support “a national

commitment to train 2 million

Americans with skills that will lead

directly to jobs.”

“Investing in job skills training to

boost employment and spur economic

growth is critical for meeting the

demand for a qualified workforce in the

residential construction sector,” said

Courson.

“Skills training and job placement are

key pillars of the HBI mission,” he

added.

Courson noted that a need for skilled

workers is beginning to re-emerge with

the slow return of the housing industry

from the economic downturn.

He cited NAHB projections that

housing starts would increase by 17%

this year.

Courson also cited a report from the

ManpowerGroup that 52% of

employers are having difficulty filling

job openings, and that the top category

of hard-to-fill jobs is skilled trades.

Courson said that HBI agreed with

the President’s assessment that many

companies that want to hire cannot find

workers with the right skills.

HBI, he added, “has the workforce

development programs in place so that

we can, as the President noted, ‘turn our

unemployment systems into a

reemployment system that puts people

to work.’ The residential construction

sector is poised and ready to help our

nation build a strong economy.”

“We look forward to working with

the President, Congress and others to

ensure

Builders Outlook2 ISSUE 2 2012

The month of February is upon us and we

move into the new month with hope and

prayers. The local economy has continued

to show signs of life and some of that is

coming to our industry. We still are a long

way from where we were only three years

ago, but compared to the rest of the country

we continue to buck the trends. I think it has

a lot to do with the strength that we have

from living in the desert, a rough

unforgiving land that we call home. So

many times we’ve considered ourselves less

fortunate than the rest of the world, but what

we’ve come to know is that we have a

resilience few others dare. I’m proud to be

an El Pasoan and proud to lead this fine

federation. We aren’t perfect but we are

here fighting the good fight. Our successes

have been in direct proportion to our

members and we’ve got the best in the

business.

This month is the month for some great

opportunities for us as we celebrate and

come together for some good things. First

is our bi-monthly general meeting held on

February 8 at the El Paso Club. The food

and atmosphere really is good for us and

this month I’d like to thank Sonja Scanlon

from Alon Brands for sponsoring the

meeting. This will be a good time for us to

talk, report and follow up on the action

from the last few months and look at

what’s coming up. Your attendance at

these meetings is a crucial part of your

membership and you should come and

break bread with us.

We continue the month with our

Valentine’s Day Bowling Tournament

where everyone wins and the fun starts.

Bowl El Paso on the eastside will host

about 40 or 50 of us for a fun filled

afternoon. We’ll give you a full report on

that event later on in March.

I would like to thank the members who

participated in the Spring Home Show at

the Civic Center last month. The crowds

were big especially on Saturday when

Ahmed Hassan from HGTV was there.

What a nice guy to stick around and meet

and greet so many people. Ray told me he

was signing away for over 4 hours.

Thanks to our promoters RJ Promotions

for a great job. Our goal is to double or

triple the number of members showcasing

at next year’s show. Stay tuned.

We also will be meeting with our City

leaders again in February, looking for

ways to help each other reach our goals of

making El Paso a great place to live and

grow. Sometimes we get locked into some

disagreements but overall our job is to be

partners with them.

Finally, keep in mind that our

association is only as good as you make it.

Get involved with us, provide us your

thoughts, prayers, and support in any way

you can. It is my goal to continue the path

towards our mission and I can only do this

Builders Outlook3

Frank

Arroyos

President,

El Paso Association

of Builders

President’s Message

This school year has passed by very

quickly and it is now past the halfway

mark to completion. That means students

will soon be experiencing the annual

standardized testing. During the past two

or three legislative sessions, TAKS testing

has been under fire from educators.

According to the critics, education had

morphed into the process of teaching the

test; something I agreed with.

Since the federal mandate by the “No

Child Left Behind” program was passed

during the first Bush administration, Texas

school districts have battled with the right

direction to take when addressing

educational accountability.

Since I took office in 2003, I cannot

recall a moment when there was any solid

consensus for TAAS, TAKS or now for

State of Texas Assessment of academic

Readiness (STAAR). I believe that a big

part of the problem is that parents were

never clear on what the content or intent of

the testing was for.

STAAR attempts to change that by

making the test an end of course exam. At

least with this measure, there might be

some better understanding for parents who

want to help their children do well on the

exam.

However, at this point with the exams

looming on the very near horizon, even

local school officials are vague on what

the tests will be like. What is known is that

the end of course exams will count fifteen

per cent toward a student’s grade point

average (GPA). There are indications that

parents may not know the full GPA until

weeks or even months after the end of the

school year. Once again, there is in place

the academic standards, as measured by

the end of course exams, that will not

provide the parents a clear picture of their

students performance.

A reasonable person would probably

scratch his or her head in amazement as to

how disconnected the process is.

It is easy to understand why there is such

disconnect; since 2003, educators in the

legislature have been locked out of the

room when education bills were drafted.

Committee leaders with no educational

background were guided by lobbyists with

different priorities than parents or teachers.

Another part to this problem is the

application of the legislation by the

bureaucrats. They read the bill and write

the rules in the manner by which they

interpret the law. I have seen where the

interpretation is nowhere close to the

legislative intent.

This problem exists because legislators,

who historically supported better

legislation, have been voted out of office;

or, the majority in the house and senate

support the lobby driven educational

programs.

There is a solution: VOTING.

Educators have changed the legislature

more than once. Governor Mark White

was voted out of office because he

imposed on teachers things they did not

want. Representative Greusendorf was

voted out of office because of legislation

he filed and, in some cases, passed that

was worse than anything else filed.

In 2012 and 2014, educators must make

the difference. During the last session, my

office received dozens of calls, letters and

emails from educators demanding action

against certain bills that were harmful to

teachers. We researched the voting

records of those who contacted the office

and found that only around 40% voted in

2010; 25% of those households had no

registered voters; and, that many of those

households had multiple registered voters

but only one actual vote in the 2010

general election. That level of

participation will change nothing.

I am asking that every teacher and their

families vote; especially in the year we

elect the governor because those statewide

races impact local education more than the

presidential year elections.

Standardized tests at issue in elections

Chente Quintanilla

State Representative

Guest Perspective


We represent a fair amount of the home

building industry through membership and

we impact those who are not members as

well. In a review of who our

builder/developer/remodeler members are

we can comfortably assert that we have the

top eight out of ten of the area’s most

prolific home builders. The same hold true

for the developers and we represent the

most elite in remodelers. This shouldn’t

come as news to most. Our membership

continues to bring inquiries and we add

new members every month.

It’s the associates who make up the

largest segment of a builder association and

its true here as well. Many people are not

aware that in our ranks are some of the

area’s best legal minds, professionals who

understand the value and principles that

drive the home building industry in El

Paso. As the industry continues to grow it

gets more complicated and that’s when our

attorney’s become invaluable. They help

our members with property rights,

consumer law, business law and the other

complicated laws that our contractors and

developers come across.

Would it surprise anyone then that our

members include vendors and suppliers?

Of course not, but how about other

associations as members? Why would

business or trade associations join?

Strength in numbers and common risks,

that’s why. How about financial services or

insurance professionals? They too

understand the importance of a strong

home building industry in El Paso. Car

dealers? You bet, as they not only supply

the work vehicles but also those family cars

and trucks that our members buy. It’s the

same thing when we have any business

type in El Paso as a member. It’s the

common thread associated with

membership: value, service and return on

investment.

Over the next month or so we will hear

more about a change in the Plan for El

Paso, a multifaceted document that is

known as the Comprehensive Plan. The

consultants have worked with the city

officials to present a 700 page document on

what direction the city should take when

deciding growth, land use, health, welfare,

and other such things. It is a guide that has

been shown to a lot of El Pasoan’s and

others as the document to give insight into

what the future El Paso should look like.

While there are parts of the Plan that our

membership doesn’t totally agree with

there are some proposals that are

interesting, thought provoking, and doable.

Other parts are wishes. We hope that

through the next process of moving the

Plan forward that we can work on the

sections that concern developing and

building in a cooperative way. The risks are

great enough without adding rules that add

to that risk. What we are asking is that

everyone, citizen, politician, bureaucrat,

builder and associate alike understand that

economics is the driving force for growth

in a community. Lose sight of that and

nothing is accomplished by a plan, no

matter how big.

Perspective

Ray Adauto,

Executive

Vice President

EPAB

Our association’s diversity can help shape our future

Showroom: 2131 Missouri

915 • 533 • 6045 fax • 533• 6096

Thomas R. Brown, Owner

Over the next month or so we will hear more about a change

in the Plan for El Paso, a multifaceted document that is known

as the Comprehensive Plan. The consultants have worked with

the city officials to present a 700 page document on what

direction the city should take when deciding growth, land use,

health, welfare, and other such things.

Builders Outlook 5Issue 2 2012

The index identifies metropolitan

areas that have shown improvement

from their respective troughs in housing

permits, employment and house prices

for at least six consecutive months. The

February index adds some metropolitan

areas that have been particularly weak;

this is due to the fact that the IMI

measures improvement from a bottom,

and some of the hardest hit markets are

showing signs of coming off of extreme

lows. Keeping this in mind, notable

new entrants to list in February include

Miami, Fla; Boston; Detroit; Kansas

City, Mo.; Portland, Ore.; Memphis,

Tenn.; and Salt Lake City.

“The number of improving housing

markets has risen for six consecutive

months, and 36 states now have at least

one metropolitan area on the list,” noted

NAHB Chairman Bob Nielsen, a home

builder from Reno, Nev. “This indicates

that despite the many challenges that

continue to drag on a housing recovery

– including the tight lending

environment for builders and buyers –

improving conditions are slowly but

surely spreading from one housing

market to the next.”

“While many of the markets on the

February IMI are far from fully

recovered, the index points out where

employment, home prices and housing

production are no longer retreating and

have held above their lowest recession

troughs for six months or more,” said

NAHB Chief Economist David Crowe.

“This is a sign that a large cross section

of the country is starting to turn the

corner as local economic conditions

stabilize.”

“The fact that there are nearly 100

markets now on the improving list

shows that the momentum is building

for a housing recovery and that more

buyers and sellers are starting to feel

confident enough to return to the

market,” said Kurt Pfotenhauer, vice

chairman of First American Title

Insurance Company.

The IMI is designed to track housing

markets throughout the country that are

showing signs of improving economic

health. The index measures three sets of

independent monthly data to get a mark

on the top improving Metropolitan

Statistical Areas. The three indicators

that are analyzed are employment

growth from the Bureau of Labor

Statistics, house price appreciation

from Freddie Mac, and single-family

housing permit growth from the U.S.

Census Bureau. NAHB uses the latest

available data from these sources to

generate a list of improving markets. A

metropolitan area must see

improvement in all three areas for at

least six months following their

respective troughs before being

included on the improving markets list.

Seven markets dropped from the

NAHB/First American Improving

Markets Index in February as they

experienced softening house prices.

These metros include San Jose, Calif.;

Washington, D.C.; Kankakee, Ill.; New

Orleans; Worcester, Mass.; Jackson,

Miss.; and Sherman, Texas.

A complete list of all 98 metropolitan

areas currently on the IMI, and a

separate breakout of metros newly

added to the list in February, is

available at: www.nahb.org/imi.

Improving Housing MarketsList of areas now expanded to nearly 100

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The list of housing markets showing measurable improvement expanded by 29 metros in February to include a total of 98

entries on the National Association of Home Builders/First American Improving Markets Index (IMI), released today. Thirty-six

states are now represented by at least one market on the list.

“While many of the markets on

the February IMI are far from

fully recovered, the index points

out where employment, home

prices and housing production are

no longer retreating and have held

above their lowest recession

troughs for six months or more,”

said NAHB Chief Economist

David Crowe.


From NAHB

Nationwide housing affordability, asmeasured by the National Association ofHome Builders/Wells Fargo HousingOpportunity Index (HOI), rose to arecord level during the fourth quarter of2011, while prospective home buyerscontinued to feel the constraints oftighter credit standards and a softeconomy.

HOI data released today indicated that75.9 percent of all new and existinghomes sold in the fourth quarter wereaffordable to families earning thenational median income of $64,200, thehighest percentage recorded in the 20-year history of the index.

“While today’s report indicates thathomeownership is within reach of morehouseholds than it has been for morethan two decades, overly restrictivelending conditions confronting homebuyers and builders remain significantobstacles to many potential homes sales,even with interest rates at historicallylow levels,” said Barry Rutenberg,chairman of the National Association ofHome Builders (NAHB) and a homebuilder from Gainesville, Fla.

In Youngstown-Warren-Boardman,Ohio, Pa., the most affordable majorhousing market in the country during thefourth quarter, 95.1 percent of all homessold during the quarter were affordableto households earning the area’s medianfamily income of $54,900.

Also ranking at the top of the mostaffordable major housing markets, indescending order were Lakeland-WinterHaven, Fla.; Modesto, Calif.;Harrisburg-Carlisle, Pa.; and Toledo,Ohio.

Among smaller housing markets, themost affordable was Kokomo, Ind.,where 99.2 percent of homes sold duringthe fourth quarter of 2011 wereaffordable to families earning the medianincome of $59,100. Other smallerhousing markets at the top of the indexincluded Fairbanks, Alaska; Cumberland,Md.-W.Va.; Lima, Ohio; and Rockford,Ill.

In New York-White Plain-Wayne,N.Y.-N.J., the least affordable majorhousing market during 2011’s fourthquarter, 29.0 percent of all homes soldwere affordable to those earning thearea’s median income of $67,400. This

was the 15th consecutive quarter inwhich the New York metropolitandivision held this position.

Other major metro area at the bottomof the affordability index includedHonolulu; San Francisco-San Mateo-Redwood City, Calif.; Santa Ana-Anaheim-Irvine, Calif.; and LosAngeles-Long Beach-Glendale, Calif.,respectively. (Editor’s note: El Paso,Texas ranked 8th in least affordablecategory for populations of 500,000 ormore. El Paso’s median income isaround $37,000 a year for a family offour.)

Ocean City, N.J., where 47.5 percentof the homes were affordable to familiesearning the median income of $70,100,was the least affordable of the smallermetro housing markets in the countryduring the fourth quarter. Other smallmetro areas ranking near the bottomincluded Laredo, Texas; San LuisObispo-Paso Robles, Calif.; Santa Cruz-Watsonville, Calif.; and Brownsville-Harlingen, Texas.

The NAHB/Wells Fargo HOI is ameasure of the percentage of homes soldin a given area that are affordable to

families earning that area’s medianincome during a specific quarter. Pricesof new and existing homes sold arecollected from actual court records byFirst American Real Estate Solutions, amarketing company. Mortgage financingconditions incorporate interest rates onfixed- and adjustable-rate loans reportedby the Federal Housing Finance Board.

The NAHB/Wells Fargo HousingOpportunity Index is strictly the productof NAHB Economics, and is not seen orinfluenced by any outside party prior tobeing released to the public.

Affordability Reaches Record Level

Tight Credit Conditions Impede Housing Market

El Paso continues to fall into bottom 10 least affordable

El Paso ranked 8th in least

affordable category for

populations of 500,000 or

more. El Paso’s median

income is around $37,000 a

year for a family of four.)

The centerpiece of the Patient Protectionand Affordable Care Act, health insuranceexchanges, won’t go into effect until 2014.However, some portions of the law willbegin taking effect this year. Here’s anoverview of some of the changes you’ll see.

A new health plan model.

Starting on January 1, accountable careorganizations (ACOs) can enter intocontracts with Medicare. The AffordableCare Act provides incentives for physiciansand hospitals to join together in ACOs,integrated healthcare systems thatcoordinate patient care to improve quality,prevent disease and illness and reduceunnecessary hospital admissions. ACOsthat furnish high-quality services will berewarded based on standards that they helpdevelop, based on solid medical evidence.

Many insurers and employers will bewatching to see if ACOs can deliver qualityhealthcare at a savings to Medicare patients.If they can, look for employer groups tomove to ACO models. Starting on March23, health insurers and group health plansmust provide two documents designed tohelp plan members understand theirbenefits: a standardized summary ofbenefits and coverage and a uniform

glossary of health insurance coverageterms. If you have a fully insured plan, yourinsurer will provide these documents. Thesummary will contain simple and consistentinformation about health plan benefits andcoverage. It will allow individuals to easilycompare different coverage options bysummarizing key features, such as coveredbenefits, cost-sharing provisions, coveragelimitations and exceptions. People willreceive the summary when shopping forcoverage, enrolling in coverage, at eachnew plan year, and within seven days ofrequesting a copy from their healthinsurance issuer or group health plan.

A new fee.

For policy or plan years ending afterSept. 30, 2012, issuers and employerssponsoring certain group health plans mustpay a fee of $1 per member per year. Thefee jumps to $2 per member per year forpolicy or plan years ending after Sept. 30,2013, and then is subject to adjustment.Fees will go to the Patient-CenteredOutcomes Research Institute (PCORI) tofund research that will help inform healthcare decisions. PCORI, an independentnonprofit organization established byCongress through the Affordable Care Act,will seek to provide evidence on theeffectiveness of different treatment optionsfor different patients. Studies will comparedrugs, medical devices, tests, surgeries andways to deliver healthcare.

A new way of keeping medical records.The first regulation implementingelectronic health records will go into effecton October 1. Healthcare remains one of thefew industries that rely on paper records.The Affordable Care Act institutes a seriesof changes to standardize medical billingand requires health plans to begin adopting

and implementing rules for the secure,confidential, electronic exchange of healthinformation. Using electronic healthrecords will reduce paperwork andadministrative burdens, cut costs, reducemedical errors and, most importantly,improve the quality of care.

New reporting requirements.

Employers that issue 250 or more W-2forms should be preparing to report theircontributions toward employees’ healthinsurance premiums on W-2s for tax year2012 (which go out in early 2013). All otheremployers must comply by tax year 2014.Although employees who terminate theiremployment before the end of 2012 mayrequest an early W-2, employers are notrequired to report health coverage costs onthose early W-2 forms.

The IRS has clarified that the reporting isinformational only, to inform employees ofthe cost of their health care coverage, anddoes not cause excludable employer-provided health care coverage to becometaxable. The IRS further clarified that“applicable employer-sponsored coverage”

does not include dental or vision coverage,unless they are included in a major medicalplan. It also does not include long-term careor disability coverage. Finally, the law doesnot require employers to send a Form W-2with healthcare reporting information toretirees or other former employees whoreceive no compensation from theemployer. To calculate the premiumamount, use the monthly premium rate for afully insured plan or the COBRA premiumequivalent rate minus the 2 percentadministrative fee for a self-insured healthplan. Include both employer and employeecontributions; employer contributions tomedical savings accounts (MSAs), healthsavings accounts (HSAs), healthreimbursement arrangements and mostflexible spending accounts (FSAs) areexcluded.

Joe Bernal is a licensed insurance and

financial services professional and

member of the El Paso Association of

Builders. He may be contacted at:

[email protected]

Builders Outlook 7ISSUE 2 2012

Joe Bernal

Employee Benefits of El Paso

Guest ADVICE Health Care Reform: What’s happening in 2012?

El Paso Disposal

772-7495

EPABON THE SCENE

Spring Home Show

features ‘Yard CrashersAsssociates Meeting

The 2012 Spring Home Show present-

ed by the El Paso Association of Builders

was a great way to start 2012. Our part-

ner producer, R J Promotions of St.

Joseph, Missouri gave El Paso what it

wanted in a show: great exhibitors and a

very “hot” TV star. While the booths

were doing some bang up business dur-

ing the first few hours of the show noth-

ing compared to the throngs of visitors

that showed up on Saturday to see HGTV

and DIY star Ahmed Hassan of “Yard

Crashers” fame. Hassan met the large

crowd with smiles and hugs as the hand-

some and talented young star didn’t hesi-

tate to press the flesh. “In all the years

that I’ve done shows with talent this has

got to be one of the best experiences for

the audience,” RJ Promotions floor agent

Reagan Bartram said. No doubt the

ladies liked Ahmed but it was the guys

who came to see him that surprised even

the most experienced show staff. “It was

amazing to see that the guys enjoyed vis-

iting with Ahmed nearly as much as the

ladies, but they also had some technical

questions that Ahmed was able to answer

for the most part,” said Ray Adauto. It

was posted that Hassan would appear for

a couple of hours but instead he worked

the crowd for nearly five hours. “I’m

tired, but I’m so happy to be with my

fans. This is what I love about being on

the show and it’s what I live for,” Ahmed

said.

EPAB member 84Lumber took full

advantage of Hassan as he was the main

attraction at a nailing contest. Throngs of

fans gathered around the exhibit in order

to see the contest and watch.

Texas Gas also had a great outing as

John Reich told the Outlook of their suc-

cess. “I have to tell you, this was a great

show and we had a lot of fun doing it,”

Reich said. “Our display was next to

Lowes and the crowds were overwhelm-

ing,” he continued.

The Spring Home Show produced by

R J Promotions is the only home show

exhibit that the El Paso Association of

Builders endorses. This is the third year

for the partnership. The 2013 Spring

Home Show is already being mapped and

we’re sure R J will bring in another top

notch entertainer. We’re also hopeful

that Ahmed will bring his TV show to El

Paso and makeover a local yard.

The Associates Council met at the EPAB offices in

January. The meeting was held to go over the upcoming

events and to report on the Spring Home Show. A good

crowd showed up to get reports from Sam

Shallenberger, Associates Council Chair, and also from

Ray Adauto.

Sam reported that our Spring Home Show had been

well attended especially with the HGTV “Yard Crasher”

star Ahmed Hassan. Attendees also got an opportunity

to visit with a variety of show exhibitors ranging from

home builders to water treatment vendors.

Also on the agenda was upcoming February 14 bowl-

ing outing to be held at Bowl El Paso. Sam talked about

the variety of prizes and the fun aspect of the event. The

associates were also told to expect a few educational

sessions and some new events including an all new for-

mat on the upcoming Spring Golf Tournament.

A show of hands also gave the association permission

to pursue a concealed handgun class for members and

nonmembers alike. More information will be forthcom-

ing on this class later during the month.

Associates attending also had a chance for some great

gift drawings including a portable grill station won by

Nailea Fernandez; a free general meeting lunch won by

Art Salazar; and a windbreaker won by a guest. All in

all a fun time for our Associates Council.

Issue 2 2012

Everyone needs a “cornerman”By Ray Adauto

Some of you may know who Angelo Dundee was and some of you won’t. I doubt seriously if anyone alive today doesn’t rec-

ognize the name Mohammed Ali (Cassius Clay); or perhaps Sugar Ray Leonard, or Joe Frazier. If you remember these names

perhaps you should remember Angelo Dundee, because frankly you couldn’t have any of those other names in your collective

memory without Angelo. It was Angelo Dundee, soft spoken Italian man who turned Ali, Frazier, Sugar Ray and others into the

boxing world’s most prolific boxers. In boxing circles he was one of the best, if not the best, cornermen.

Angelo Dundee was there with other notables in the professional boxing world. He was the cornerman for George Foreman

when he took on Evander Holyfield. In addition, Dundee also trained such world champions as Luis Rodriguez, Willie Pastrano,

Ralph Dupas, José Nápoles, Pinklon Thomas, Trevor Berbick, Jimmy Ellis, Wilfredo Gómez, Michael Nunn and Sugar Ramos,

as well as other boxers such as Bill Bossio, David Estrada, Douglas Valliant, Jimmy Lange, Tom Zbikowski and Pat O'Connor.

I got to meet Angelo Dundee while attending an national Executive Officers meeting in Providence, Rhode Island. He was

about 87 then and in remarkable health, keen, and so gracious to a guy from El Paso, Texas. Angelo Dundee was a man’s man.

A gentle, kind, man. He was a cornerman, a trainer.

The point of this story isn’t that I got to meet Angelo or that he turned out to be the gentleman that I always thought of him as.

No it’s got a lesson that sends a message about success as much as anything else. The message? We can’t be champions alone.

No matter what you think of yourself, even if you reign as the world champion of something, be it football, baseball, boxing or

career, you didn’t get there without a cornerman. You need someone that can acknowledge your weaknesses and sharpen your

strengths.

As an association member you need to know that others may have gone through what you’re experiencing and they are more

than willing to help give you advice or training. Acknowledging that you need others is the first step to success and a way to

maintain it. If you plan to diet find someone to help. If you need help with taxes, find someone to help. If you are struggling in

business find a business trainer to help you. Ali, Frazier, and Leonard ad great as they were all knew they needed Angelo Dundee.

When you take the time to look for a cornerman you find yourself on the path to success. Find your own Angelo Dundee and

train to your success.

Builders Outlook10ISSUE 2 2012

Zeroing in on yet another deficiency of a

faulty appraisal process that is hurting home

values, hampering a housing recovery and

often killing sales of homes coming in

below the contract sales price, the

Government Accountability Office (GAO)

earlier this month reported that the Appraisal

Subcommittee, which oversees the appraiser

regulatory programs established by the

states, needs to improve its monitoring

procedures.

“These findings underscore the need to

establish an effective oversight system to

ensure that appraisals accurately reflect true

market values and don’t harm aspiring home

buyers or builders,” said NAHB Chairman

Bob Nielsen, a home builder from Reno,

Nev.

A recent NAHB survey shows that one

out three builders have lost signed sales

contracts because of flawed appraisals and a

fall survey conducted by the National

Association of Realtors shows that 18

percent of Realtors® reported a recent

contract cancellation or delay as a result of a

low appraisal.

Numerous flaws in the appraisal system

have been causing inaccurate home

valuations, both in times of housing

weakness and strength. NAHB has been

actively seeking improvements in appraiser

education and training, particularly for

appraisals of new homes, as well as more

rigorous oversight so appraisal guidelines

are enforced and errors can be corrected as

they occur.

The GAO report found the Appraisal

Subcommittee’s “enforcement tools and

procedures for reporting compliance levels

have been limited.” The GAO cited “several

weaknesses” that have potentially limited

the subcommittee’s ability to monitor state

appraiser regulatory agencies, the federal

financial institution regulators and the

Appraisal Foundation, a private, non-profit

corporation that sets criteria for appraisals

and appraisers.

Under the Dodd-Frank Act, the Appraisal

Subcommittee was granted the authority to

establish a national hotline to receive

complaints over noncompliance with

appraisal independence standards and

grievances from appraisers, individuals or

other entities over attempts to improperly

influence appraisers or the appraisal process.

Currently, no such hotline exists and the

GAO report states that the creation of a

national hotline could strain the Appraisal

Subcommittee’s resources.

Observing that “the critical role of real

estate appraisals in mortgage underwriting

underscores the importance of effective

regulation of the appraisal industry,” the

GAO study calls on the Appraisal

Subcommittee to strengthen its oversight by

developing specific policies and procedures

for monitoring the appraisal requirements of

the federal financial institutions regulators.

How homes are valued can have a

dramatic effect on home owners’ mortgages,

foreclosure rates, the health of banks and,

ultimately, the condition of the U.S.

financial system, said Nielsen.

“The current system is not working,” he

said. “We must resolve a flawed appraisal

process that produces inaccurate assessment

of home values, because this fosters price

instability, puts more families in danger of

default or foreclosure, and undermines the

housing and economic recovery. It’s time

that regulators, appraisers, lenders and all of

the stakeholders in this debate come

together and agree on major reforms in

appraisal practices and oversight to ensure

that homes are appraised at their fair market

rate.”

GAO Study Finds

Appraisal Process

Inadequately

Monitored

www.swher.com

5400 Suncrest Dr. C-6 El Paso, Tx. 79912

Ph. (915) 613-4168

Fx. (915-833-6437

SENERCONSouthwest Energy Conservation, LLC

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7365 Remcon Circle El Paso, TX 79912

Builders Outlook issue 2 2012 11

Builders Outlook12issue 2 2012

years

E L PA S o

BUILDERSA S S o C I A T I o n o F


A look back...Moments in our 65 year history

The year was 1995. Population of El Paso County in 1995: 661,864. The world was tuned into the O.J. Simpsoncriminal trial that started in January. In February of that year the Dow Jones Industrial Average closed above4000 for the first time ever. The United Kingdom's oldest investment banking firm, Barings Bank, collapses after

securities broker Nick Leeson loses $1.4 billion by speculating on the Tokyo Stock Exchange. In Denver, Colorado,Stapleton Airport closes and is replaced by the new Denver International Airport, the largest in the United States. Sadly,in March of 1995 Tejano superstar Selena is killed by the president of her own fanclub, Yolanda Saldívar. April broughtus the bombing of the Oklahoma City Federal building. Homegrown terrorism was real and its ugly head had risen withdevastating results. On a much lighter note the Rock and Roll Hall of Fame opened later that year, and Pope John PaulII visited the U.S. in late October. At the movies it was the movie Babe, about a little pig with a big heart, or Dead ManWalking with Tom Hanks taking the most money in that year.

Back here at home the El Paso Association of Builders is led by President Rudy Guel. The VP was Pat Woods,Treasurer John Cullers, Secretary is Bobby Bowling IV, Associates chair Bill Royer, and the E.O. was John Gross. Thecouncils numbered five with Wayne Grinnell leading Land Use. Women’s Council was headed up by Dorothy Swack.February 1995 meant a trip to Austin for Legislative Rally Day, and time was getting close for the upcoming Home Show.Concerning the trip to Austin, John Gross told the members that a round trip flight to Austin on Southwest Airlines wouldbe $124!

Looking at some of the issues for 1995 it’s interesting to note that there was a battle going on with the Public ServiceBoard over a proposal to charge $1,146.00 per water meter for each new home or single water hookup. The associationwas fighting that proposal with action from the Government affairs committee headed up by Bobby Bowling IV. WayneGrinnell was heading up a committee working on a proposed landscape ordinance. Tony Conde and John Ivey, Jr. werehelping with the politics of that proposal. There was also a move afoot to get members into the PAC especially with theupcoming city elections. Wayne would state “the political war chest should be large and noisy”. El Paso was going toexperience one of the most devastating economic events. In 1995, the Department of Defense recommended that the U.S.3d Armored Cavalry Regiment be relocated to Fort Carson, Colorado. Efforts to consolidate units from another post withthose units that remained at Fort Bliss were overruled by the Base Realignment and Closing Commission, leaving FortBliss without any armored vehicles.

Our Builders Outlook newsletter was printed on color paper and was 16 pages. Featured ads included those from SunWorld Savings Bank, Bluebonnet Savings Bank, FSB; Alpha Distributing; Stewart Title; BMC West; Sarabias PortableJons, Inc.; Lawyers Title; Pioneer Mortgage Co.; and Mobile Comm just to name a few. Some are still around, others not.1995 was no different than 2012 in that an announcement was placed asking for reservations for events and meetings wereimportant. RSVP is still not in some people’s vocabulary. The more things change, the more they are the same.

Compiled to By Ray AdautoInformation for this column came from a variety of sources including Wikipedia, US Census Data, and various news organizations.

A Look Back is a monthly feature of the El Paso Association ofBuilders publication the Builders Outlook. Look for more history of

the El Paso Association of Builders in coming editions.

FEBRUARY 14

VALENTINE’S DAY

BOWLING EVENT

BOWL EL PASO

12:30 TO 4:00 P.M.

FEBRUARY 22

TAB WINTER MEETINGS

AUSTIN, TEXAS

LAND USE MEETING

EPAB NOON

MARCH 7

ASSOCIATES COUNCIL

3:30 PM

EPAB OFFICE

MARCH 14

BOARD MEETING

12:00 NOON

EPAB OFFICE

APRIL 10

SPRING GOLF

TOURNAMENT

PAINTED DUNES

APRIL 11

11:00 BOARD MEETING

12:00 GENERAL

MEETING

EL PASO CLUB

Builders Outlook 13ISSUE 2 2012

UPCoMInG EVEnTS

Membership news


SoDA SPonSoR

Thanks to our FEBRUARY

SODA SPONSOR:PreWire of El Paso

ConGRATS!

Doug, Emma and big sisterSienna on the birth of

Serafina Milan Schwartzborn December 1, 2011

REnEWALS

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Industry Reports

Associates�Council

Associates Council met in January to

discuss plans for 2012, introduce some new

associates and bring the group up to date. It

was a great time and I want to thank all of

the members who came. We started the

year with a really good Spring Home Show

at the Convention Center. While traffic was

real good over the three days nothing

compared to the crowds on Saturday as the

HGTV star Ahmed Hassan really drew

well. The displays were nice but most

importantly for many of us was that we got

a good opportunity to let the consumer

know who we are first as a business and

then as a member. I have a real big wish for

the Spring Home Show in 2013 and that is

that more members see the value of

participating in the show. I guarantee you

that you can live off the referrals if you

work them right! Nothing says success like

it.

Our next outing is the much anticipated

Valentine’s Day Bowling event. Should be

a lot of fun with the theme of the day and

the fun time we have bowling. You know

it’s also neat when we get to give out some

cool prizes. Ray has provided a $50 dining

card and it looks like Western Wholesale is

going to be able to offer a wonderful high

end mixer again. As of the deadline we still

had a few lanes available so come out and

enjoy a fun afternoon. What a great place

to bring a customer!

The chili-menudo cook-off is still in the

works as is a tour of homes and some other

events later on this year. We will be

offering a few education classes soon as

well as a really cool concealed hand gun

class sometime soon. Stay tuned as your

Associates Council moves forward. Good

luck and good selling. See you at our next

meeting.

Sam�ShallenbergerWestern�Wholesale

Supply

Land�Use�Council

It has been a long road, but the City of El

Paso currently in the process of finalizing

the Comprehensive Plan for El Paso.

Through extensive coordination with

industry members, the presentation of the

plan to CPC and the City Council has been

postponed until March in order to allow for

time for stakeholders to provide their

comments. The latest draft plan and list of

proposed updates are available for review

online at www.planelpaso.org

For those of you who are unfamiliar with

the plan, it is the document that provides

guidance to Council and staff regarding the

project and development goals of the city. It

does not change existing regulations. In

order for regulatory changes to be affected,

individual ordinances must be adopted.

This plan does, however, impact the

opportunities for future land use changes.

For example, if a land owner wishes to

rezone a property, then the planning

department will cross check the proposed

use against the land use map of the

comprehensive plan and make

recommendations to the planning

commission based upon whether or not the

requested zoning is consistent with the

comprehensive plan. Similarly,

thoroughfares will also be checked against

the major thoroughfare plan map that is a

part of the comprehensive plan.

For this reason, it is vital that comments

from all stakeholders be sent to the planning

department. The link to email the City staff

regarding the comprehensive plan process is

available on the “Click here to Email Us!”

link on www.planelpaso.org.

In addition, Sal Masoud is a board

member of the Rio Grande Citizens Forum

and is actively involved in the processes and

status of the proposed Federal Emergency

Management Agency (FEMA) Flood

Insurance Rate Map (FIRM) updates.

Information regarding this status may be

viewed on the City’s website at

www.elpasotexas.gov. It will also continue

to be a topic of discussion at our Land Use

Council meetings on the fourth Wednesday

of each month. We hope to see you there!

Linda�Troncoso

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www.bordersolar.com

7365 Remcon Circle

El Paso, TX 79912

(915) 613•4168

follow us on twitter and

facebook:

BorderSolar

Join UsApril 10

El Paso Association of Builders

Young Designers Golf Tournament

Painted Dunes

12:30PM

Call 778-5387 for information

� execuTive oFFicerS

Frank Arroyos - President

Cisco Homes

edmundo Dena - vice President

Accent Homes

Frank Torres - Secretary/Treasurer

GMF Custom Homes

Sam Shallenberger - Associates council

Western Wholesale Supply

Greg Bowling - immediate Past President

Tropicana Homes

ray Adauto - executive vice President


� couNciL/commiTTee cHAirS

Affordable Builders council

Bobby Bowling IV

Associates council

Sam Shallenberger

Build PAc

Randy Bowling

Desert Green Building council

Javier Ruiz

industry Promotions

Greg Bowling

Land use council

Linda Troncoso and Sal Masoud

Young Designer Award

John Chaney

remodelers council

Rudy Guel

membership Drive

Mike Santamaria

Finance committee

Kathy Carrillo

education committee

Frank Spencer

� ADviSorY To THe BoArD

J. Crawford Kerr, Attorney, Firth, Johnson

& Martinez

� BoArD oF DirecTorS

Joe Bernal, Joe Bernal Insurance

Doug Borrett, Karam Co.

Kathy Carrillo, Pioneer Bank

John Chaney, Passage Supply

Sergio Cuartas, BIC Homes

Ted Escobedo,Snappy Publishing

Art Garcia, El Paso Door

Juanita Garcia, ICON Custom Home Builders,LLC

Samira Gonzalez, Edwards Homes

Lorraine Huit, Cardel Design Group

Walter Lujan, Dawco Home Builders

Sal Masoud, Del Rio Engineering

Bruce Meyer, JDW Insurance

Edgar Montiel, Palo Verde Homes

Kathy Parry, Hunt Communities

Javier Ruiz, Senercon & Border Solar

Frank Spencer, Aztec Contractors

Henry Tinajero, Bank of the West

Linda Troncoso, TRE & Associates

Ken Wade, El Paso Building Materials

Adam Winkler, MTI Ready Mix

Paul Zacour, Zacour & Associates

2011 Builder member of The Year

Greg Bowling

Tropicana Homes

20110 Pat cox Award

Kathy Parry

Hunt Communities

2011 Associate of The Year

Sam Shallenberger

Western Wholesale Supply

John Schatzman Award

Bob Bowling III

Tropicana Homes

ePAB Special Award

Rudy Guel

Guel Construction

Honorary Life members

Brad Roe

Cliff Anthes

Wayne Grinnell

Chester Lovelady

Don Henderson

Anna Gil

Past Presidents

committed to Serve

ePAB mission Statement:

The El Paso Association of Builders is a

federated professional organization representing

the home building industry, committed to

enhancing the quality of life in our community by

providing affordable homes of excellence and

value.

The El Paso Association of Builders is a

501C(6) trade organization.

© 2012 Builder’s Outlook

is published and distributed for the


by Snappy Publishing

240 Thunderbird • Suite C

El Paso • Texas • 79912 915-820-2800

6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038

Kelly Sorenson

Mark Dyer

Mike Santamaria

John Cullers

Randy Bowling

Doug Schwartz

Del Huit

Robert Baeza

Bobby Bowling, IV

Rudy Guel

Anna Gil

Bradley Roe

Bob Bowling, III

E. H. Baeza

� TAB STATe DirecTorS

Doug Borrett, Karam Co., Life Director

Randy Bowling, Tropicana Homes

� NATioNAL DirecTorS

Bobby Bowling IV.

Demetrio Jimenez

NATioNAL ASSociATioN oF

Home BuiLDerS

(800) 368-5242

TexAS ASSociATioN oF

BuiLDerS

(800)252-3625


CasinoNight FEB 25

Proceeds benefit:

Alamo Ballroom

820 North Raynor St.

Call Ana Gill for ticketss and information 591-0115

Documents

Builders Outlook Feb 2012