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Builders Outlook
Issue 3 2011 Building El Paso’s tomorrow today

Home building industry faces substantial change

National and local issues take toll on builders
Oil jumps to record high City bond requirements
The U.S. economy has taken cause major problem
another hit with the increase in oil Local builders are hopeful that
prices mostly affected by turmoil conditions continue to improve
in the Middle East and rising use and that regulators and
from India and China. Various regulations dictated by the City of
sources indicate that while rising El Paso and other governmental
unrest in Libya, Egypt and agencies do not hinder that
Tunisia worry sensitive oil prices improvement. “We have a serious
there appears to have been little issue with the new bond for
or no problems with the oil fields permits, and we are working with
or delivery systems associated the City to seek an amicable
with them. Egypt’s oil export to solution to the problem,” said
the U.S. is less than 3% but the EPAB President Greg Bowling.
United States depends on nearly The requirement for a surety bond
50% of its daily consumption on rose from $10,000 to $50,000
imports from the Middle East, January 1. The surety bond
South America and other foreign industry, as well as contractors,
countries. Production within the was taken by surprise at the new
U.S. itself is still stagnant in most requirements for the bond and the
Housing rebound affected increased down payment are two
parts of the country but recent very important factors in getting affect it is having on the trades.
The rise in oil comes at a bad
finds of large deposits of oil in the new homes to consumers. During “We have seen a decrease in the
time for the economy as a whole
west could increase drilling if the recent meetings in Austin by the number of small businesses that
but is particularly cruel to
government allows it. Montana, Texas Association of Builders, can afford this new bond and it is
homebuilders trying to come out of
Colorado, Idaho and other parts of members lamented the failure of adversely affecting their ability to
a devastating two years. Products
the West are where the newest oil the Fed to push for more stay in business,” said Bowling.
associated with oil include roofing,
finds have been made. The oil is construction loans and assistance Efforts to work on the bond are
insulation, and plumbing materials.
trapped however, under many of to consumers. (See related stories ongoing but any correction or
Add the ever increasing cost of
the nation’s scenic federally in this issue). Increasingly amendment to the already passed
gasoline to the mounting costs
protected parks and seismic economist are concerned that ordinance will have to go before
and homebuilding is once again
sensitive areas. Oil has also been housing hasn’t bounced back, but the City Council. That could take
attacked. El Paso has traditionally
flowing from the gulf once again they also state that now is the months as the process is slow and
had one of the highest gasoline
as the recent BP cleanup best time to buy even as housing cumbersome. “We just can’t undo
prices in the state even though
continues. values continue to fall in some something like this overnight, but
one of the regions largest
refineries sits in the center of the parts of the country. Qualified you have my promise that we will
city. Articles in the El Paso Times buyers are getting record low look into the unintended
consequence of the ordinance
PERMIT NO. 429
U.S. POSTAGE

the week of March 4 indicate that interest rates on good

EL PASO TX
PRSRT STD

PAID

Western Refining suffered values. Builders are and try to correct them,” said
significant damage during the hopeful that the Fed Deputy City Manager David
recent freeze that engulfed the takes control of AD&C Almonte after a recent
city. The company was quoted as in order to restore meeting with the
saying that it suffered 14 days of sensibility to housing EPAB.
lost production and that repairs construction.
would be done quickly. Western
was also the subject of concern
recently when outlying areas like
Deming, New Mexico, were
unable to get full loads of gasoline
delivered to them. The company
once again said that it was due to
repairs and upgrades rather than
a shortage of crude.
In Washington, as in cities
across the United States, housing
remains the one item that hasn’t
rebounded in the traditional
method seen in recessions of the
past. Compounding the problem
are some of the regulations that
have been imposed by the
Federal Reserve on local banks
and lenders. Credit scores and -By Ray Adauto, EPAB
2 MARCH 2011 Builders Outlook
3 Builders Outlook
President’s Message
Greg
Bowling
President,
El Paso Association
of Builders
Rally Day has come and gone, and
hopefully we’ve helped set the stage for a
productive and builder friendly 2011
legislative session at the state capitol. El
Paso was well represented with over 20 of
our members in attendance. We met with
all of El Paso’s State Representatives and
our State Senator. We were very well
received and together we helped make sure
our interests were heard on proposed
legislation on County Development
Authority, Property Rights, Freedom of
Contract, Building Codes, Property Taxes
El Paso Disposal
and Appraisals, and even proposed
Immigration laws. I’d like to extend a
special thank you to everyone that traveled
all the way to Austin to attend. Everyone
who went had a good time, but more
importantly we had a very productive day
with our elected officials. A few members
in attendance that have been going to Rally
Day for years told me that this was probably
the best and most productive Rally Day
they had ever been to. Once again I’d like
to thank the staff for their work on this and
to Ray for setting up the meetings with the
officials. My brother Randy, along with
Doug Borrett, myself and Ray stayed for
the TAB winter meetings. Lots of topics of
discussion but one that really was on the
table have to do with a piece of legislation
that would make home builders responsible
for verifying all employees on a jobsite and
face potential criminal penalties for it. We
will continue to fight that and so many other
items on the agenda at the 82nd legislature.
As of February 27 there were over 7000
proposals roaming the halls in Austin
hoping to get on track for a vote. Our
772-7495
lobbyists are on the scene and looking out
for your interests.
On the local front many builders have
been hit hard by the City’s increase of the
bonding requirement to pull a permit from
$10,000 to $50,000 this year. I and other
EPAB representatives have had a few
meetings with the City about this. It seems
that not only is the increased bond amount
an area of concern for many builders but
there is also concern about the language and
intention of this increase, as well as the fact
that the bond accumulates every year for 3
years. With the help of the guys from JDW
Insurance we have had some preliminary
meetings on this and are currently
discussing some possible language changes
to the ordinance or request on changes in
the amount of the bond. We hope to have
another meeting with the City of El Paso on
this soon to present our proposed changes.
If any members have any questions or
concerns about this please contact Ray as he
will have updates as this situation changes.
Lastly I wanted to welcome the newest
member of your EPAB Executive Board-
Jaime’s
Courier Service, Inc.
915-549-4533 or
Bonded, insured for your peace of mind.
Sam Shallenberger of Western Wholesale.
Sam has agreed to serve as the Associates
Council Chair for EPAB in 2011.
Unfortunately our former Associates
Council Chair, Eric Lowenberg had to
resign due to time commitments. So on
behalf of EPAB I want to extend a special
thank you to Eric for serving as Associates
Council Chair over the last 14 months as
well as serving the previous year as Vice
Chair of the Associates Council. As all of
us who’ve volunteered to serve on EPAB’s
Executive Board know we can never
accurately estimate the time commitment
that is demanded us. At times it can be
overwhelming trying to balance our
volunteer commitments at EPAB and trying
to earn a living at the same time.
Fortunately for us Eric has agreed to
continue to serve as a member of the
Associates Council and on the Adams Golf
Tournament Committee where his
experience is invaluable. Sam has an
aggressive agenda that will require lots of
help from all of the members. We’re
excited and ready to move forward.
915-478-2404
4 MARCH 2011 Builders Outlook

Perspective
Ray Adauto,
Executive
Vice President
EPAB
To say that it was cold would be a
misstatement. It wasn’t just cold it was
dangerous and intimidating cold. Zero
degrees with the wind blowing brought
temperatures down to where they’d
rarely been in the desert. It was the
Freeze of 2011 and those of us old
enough to remember will be able to tell
the grandkids that we survived Mother
Nature’s display of ice and more ice. As
with things that are not the norm people
tend to panic and panic leads to
frustration, leading to finger pointing and
so on and so on. It wasn’t bad enough
that the deadly cold swooshed in but it
was that our normal life was disrupted,
for some more than others. Lot’s of us
suffered damages to our homes and
businesses. The EPAB office wasn’t
immune to that either. You should know
that Margaret and Angie were first
responders on the Thursday freeze day.
They were able to react to water pouring
out from speakers and lighting in the big
room and they minimized the initial
damages. On Friday we couldn’t open
because we had no water, no heat, and no
electricity. I was here when all of the
sudden I heard water pouring down, this
Freeze 2011: Lessons from the ice storm
time in my office. It’s hard to imagine
how that felt looking at the wet floors,
the wet insulation and then the crash of
ceiling. Water moved quickly to the
bookkeeping area and onto a computer.
So much for that.
Our unsung hero in all this was Rudy
Guel, the contractor who built our office.
He and his men were on call here for
nearly 80 hours over those first five days.
Saturday evening, after a long day of
repairs on the sprinklers, Rudy and I got
a call that firemen were in the building
and that we had extensive water buildup
inside. As Rudy will tell you he saw the
firemen inside holding axes and thought
they had made their way in through the
roof. Nope, as fortune would have it they
found another less damaging way in. But
what a sight as we looked at inches of
water in the foyer, the front offices, and
in the big room. That beautiful wood
floor was soaked as were the walls.
Three dri-vacs from Kmart and lots of
muscle from Margaret, Rudy, his brother
Tony, Frank Arroyos, and Rudy’s
workers captured gallons of water in
those first three hours. By 10:30 we
were exhausted but we’d done what we
could. Now it’s up to the insurance
company. We will give you updates as
they come but we are open for business
and using the facility. Thanks to the fast
action of Rudy Guel, Frank Arroyos, our
staff and Rudy’s team. I don’t want to go
through that one again.
The storm left many unanswered
questions and finger pointing.
Common sense should dictate the
manner of resolution and
solutions for the future. Be it the
utilities, the emergency response
or businesses including home
builders and homeowners.
Needless to say homeowners all over
the city managed the damages (or didn’t)
depending on their knowledge of where
water valves were located, electrical and
gas shutoffs could be turned off. Too
many of them didn’t know where or how.
About 90% of the EP fire departments
time was spent turning off the main water
valve for homes and businesses. The
association will be producing some
informational spots for distribution later
this month. Some homeowners lashed
out at builders and at least one tv news
outlet joined them in frenzy. There have
been rants and raves that builders didn’t
do this or do that, mostly the result of
frozen pipes that had an outside facing
wall. Code, according to Alan Shubert,
the City of El Paso’s Engineer and head
of the Development Services, is that El
Paso insulates to 20 degrees. That is the
standard he said in a recent interview in
the El Paso Times. Code was followed
but that won’t appease homeowners who
are looking to blame homebuilders.
When one builder is targeted all builders
are targeted. What we are hoping for
now is that the City doesn’t take this
event and create another Stormwater fee
and department. We are concerned that
there is not a knee jerk reaction to
weather phenomena, even though history
tells us different. We also hope that those
homeowners who experienced problems
get them worked out in an amicable
manner. The storm left many
unanswered questions and finger
pointing. Common sense should dictate
the manner of resolution and solutions
for the future. Be it the utilities, the
emergency response or businesses
including home builders and
homeowners. Doing anything less would
show we can’t learn from our
experiences. I’m proud that our builder
members responded quickly, efficiently
and with a sincere willingness to help.
When one of our own is attacked it is the
entire industry that is attacked. When the
ice settles I hope cooler heads prevail (no
pun intended). Responsibility is a shared
necessity.
Send us your comments.
E-mail to:
ray@elpasobuilders.com

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 Builders Outlook
Guest Perspective
Chente Quintanilla
State Representative
One big event that many House
members look forward to is El Paso days.
Every session during the month of
February, a whole lot of El Pasoans pack
their bags and head on to Austin.
The plans for this visit begin very early
in the preceding year. It is an effort that is
spearheaded by the El Paso Greater
Chamber of Commerce. Richard Dayoub
may be the director of the chamber, but it
is the hard work of Mica Short that has
made the event a success for many
El Paso days at the Capitol
sessions now. Both, however, deserve the
highest commendations from constituents.
You may wonder why other
representatives might be looking forward
to El Paso days. It is simply because our
event always has a different flavor. In one
sense, you can take that literally.
The most famous EP Day featured
uniquely flavored margaritas named after
some of our best know icons. The only
one I truly remember was the Texas Tech
margarita. Each different flavor was
colored with a unique shade. The event
was a terrific success.
Another EP Day milestone was the
session where the Governor, Lt. Governor
and every Representative and Senator
were given one of the famous Spira sport
shoes. Those are the shoes with the spring
built in. It was a logistic nightmare for
Mica and those assisting her to get the 200
plus shoes delivered. And then there were
the do overs. Several members requested
a swap.
El Paso days may have its casual side,
but there is a very serious side to the event.
And, that is especially true this session
Most sessions, the visit was a two day
affair. The first day would be the
distribution of memorable gifts to each
legislator and a few meetings with specific
officials. The next day would also be
filled with meetings. And then the El Paso
Days reception in the early evening
signaled the last event.
This year, the participants were greater
in number and the event was a continual
lobby effort by El Pasoans on behalf of our
city and county that started on Tuesday
and did not cease until five o'clock on
Thursday. For the most part, each meeting
involved select officials who have direct
impact on programs essential to El Paso.
In some cases, the meetings were with the
Chief of Staff.
The bottom line is that the visits served
an important purpose for our community.
Being that El Paso is so far from Texas,
MARCH 2011 5
our voice is not as prevalent as
communities within as much shorter
driving distance.
El Paso has a great and united
delegation. Unfortunately, no delegation
from any area can do the best job alone. It
does take the community to reinforce the
message that we the members put on the
table.
Our entire community should be very
grateful to the Chamber for finding the
private sector money to pay for this event.
It is not cheap at all. That information is
for the Chamber to disclose but I am
astounded that the organizers can find the
revenue.
Richard Dayoub and Mica Short have
come through for El Paso in a big way this
session. The session may not provide El
Paso with as much as we need, but the
effort by the Chamber and the visitors on
El Paso Days provided an important
message to legislators and it was well
received.

Guest Perspective 2011 military academy nominees

and a desire to want to serve in the United
States military.
There are four Congressionally
nominated service academies: the U.S. Air
Force Academy, the Naval Academy, the
U.S. Military Academy at West Point, and
the Merchant Marine Academy. These
institutions are challenging, but the 16th
Congressional District has a proud history
of sending students who work hard and are
determined to succeed. This year, I had the
honor of nominating 28 stellar candidates
under “Constituent Services,” to get more I want to once again congratulate all of
information about the nomination process. the 2011 military academy nominees. I
This is a competitive process, but wish them all the best of luck in their future
acceptance to one of our finest institutions endeavors and look forward to hearing of
is a great achievement. I urge any students their achievements in the years ahead.
interested in applying to contact my office
so we can get you on your way to a
rewarding experience.
It’s a great time to buy a

Silvestre Reyes
US Congress
Recently, I had the privilege of
nominating some of the best and brightest
high school students from El Paso to attend
America's prestigious service academies.
These students have demonstrated a
commitment to excellence, and many of
these nominees will join scores of El
Pasoans who have excelled at these
institutions.
Each year, my Military Academy
Advisory Board evaluates candidate
applications based on a comprehensive
approach. Candidates complete a rigorous
application process and demonstrate
who represent 14 high schools in the El
Paso area. The young men and women I
new home in El Paso.
nominated once again comprise a highly The El Paso Association of Builders has been a part of the
incredible growth of El Paso for over sixty years.
talented group of students from throughout
El Paso. During that time, the housing market has seen a lot of changes.
The nominees accepted by the
academies will receive a top quality But never before has there been a better time to buy a new home
in El Paso.
education, and many will go on to
distinguished careers in America's Armed Our builders offer El Pasoans value, variety and a vested interest
Forces. With zero costs to students, the in our community. If you are considering buying a new home, the
total value of their education and training is time is now.
about $450,000. In return, each graduate is
required to serve their country for a
minimum of five years.
This is a wonderful opportunity for
candidates to build a rewarding career
while serving our country. Students who
are in their junior year in high school and

www.elpasobuilders.com
academic excellence, leadership skills, are interested in applying for next year can
involvement in extra-curricular activities, visit my website at www.reyes.house.gov,

Showroom:
2131 Missouri
915 • 533 • 6045 fax • 533• 6096
Thomas R. Brown, Owner
6 MARCH 2011
Builders Call On Congress To Address Housing Lending Crisis
With the housing production credit crisis
taking a severe toll on the nation's small
home building firms and threatening
future job growth and the fragile economic
recovery, the National Association of
Home Builders (NAHB) today called on
Congress to take tangible steps to improve
access to credit for small builders.
"With the spigot for housing production
loans cut off, and the threat that the
uncertainty from new rule-making under
the Dodd-Frank financial services law will
further impact the ability of small
community lenders to service the credit
needs of our industry, it is clear that
congressional action is needed to help
open the flow of credit to home builders,"
NAHB Chairman Bob Nielsen, a home
builder from Reno, Nev., told members of
the House Financial Services
Subcommittee on Financial Institutions
and Consumer Credit.
"Without such action," he added, "there
can be no housing recovery, which has
major implications for our nation's ability
to recover from the current economic
downturn."
Builders are coming under increased
pressure from lenders -- including calls for
additional equity, denials on loan
extensions and demands for immediate
repayment on acquisition, development
and construction (AD&C) loans – even
when their loans are current. Lenders are
often citing regulatory requirements or
pressure from bank examiners to reduce
AD&C loan exposure as the rationale for
their actions.
"While federal bank regulators maintain
ou R
Y
Plumbing
Source in El
4 3 0 0 R o s a S t.
E l Pa s o, T X 7 9 9 0 5
( 9 1 5 ) 5 32 -3 9 1 7 • Fa x : ( 9 1 5 ) 5 32 -3 9 1 9
that they are not encouraging institutions
to stop making loans or to indiscriminately
liquidate outstanding loans, reports from
my fellow members and their lenders
across the nation suggest that bank
examiners in the field are adopting a much
more aggressive posture," said Nielsen.
To address this situation, NAHB has
presented banking regulators with specific
instances of credit restrictions, provided
data showing no difference in credit access
across market conditions and requested
specific changes to current regulatory
guidance.
To date, these efforts have yielded no
concrete results, which is why NAHB will
soon be offering a formal legislative
blueprint to Congress that focuses on
fixing specific instances of regulatory
excess while helping to ensure adequate
credit availability to home builders.
Nielsen stressed that problems in the
housing sector resulting from the
economic impact of the credit crunch have
placed an enormous toll on the nation's
economy. The sharp decline in home
building from the 2005 peak – a drop of
one million units – has translated into 1.4
million lost jobs for construction workers
and the loss of $70 billion in wages.
Factoring in the effect of the housing
plunge on industries that provide materials
and services to home builders, the total
impact of the housing slump has been the
loss of more than three million jobs and
$145 billion in wages in all housing-
related industries.
"NAHB estimates that over the next
decade there will be a need for at least 1.7
million additional homes per year," said
Nielsen. "This translates into five million
jobs and significant economic activity.
Without increased AD&C lending, this
future demand will not be met, job loss
will occur and job creation will suffer."
Qualified Residential Mortgage
On a related topic, NAHB urged the
federal banking regulators to take an
expansive interpretation regarding
forthcoming credit risk retention rules
required by the Dodd-Frank Act
concerning the definition of a Qualified
Residential Mortgage (QRM). The law
requires lenders to have "skin in the game"
by holding a small percentage of each loan
that they sell into the secondary market.
What is still to be determined is how the
risk retention rules will be established and
what definition regulators should apply to
include an exemption from the QRM
requirements for certain high-quality,
lower-risk mortgages.
If agencies establish a QRM standard
that is significantly tighter than current
credit standards, which are already tougher
than they have been in decades, Nielsen
warned that millions of creditworthy
Builders Outlook
Builders are coming under increased
pressure from lenders -- including calls
for additional equity, denials on loan
extensions and demands for immediate
repayment on acquisition, development
and construction (AD&C) loans – even
when their loans are current.
borrowers would be deemed, by regulatory
action, to be higher-risk borrowers.
"As a result, they would be eligible only
for mortgages with higher interest rates
and fees, which would prohibit many
potential first-time home buyers from
purchasing a home, especially if the
definition includes an excessively high
minimum downpayment requirement,"
said Nielsen.
Further, an overly restrictive QRM
definition would also drive numerous
current lenders from the residential
mortgage market, including thousands of
community banks, and enable only a few
of the largest lenders to originate and
securitize loans.
"This sharp dilution of mortgage market
competition would have a further adverse
impact on mortgage credit cost and
availability," said Nielsen. "We therefore
urge the agencies to define the QRM's
parameters in a way that facilitates a
housing recovery and ensures access to
conventional mortgage credit for all
buyers and refinancers, while preserving
high quality, empirically sound
underwriting and product standards."
From NAHB
 Builders Outlook
Builders Urge Representatives to
Co-Sponsor Resolution Supporting
the Mortgage Interest Deduction
From NAHB: The National Association
of Home Builders (NAHB) urges members
of the House of Representatives to show their
support for homeownership and the
mortgage interest deduction by co-
sponsoring H. Res. 25.
"This resolution acknowledges the
importance of homeownership to individual
households, the economy and the nation,"
said NAHB Chairman Bob Nielsen, a home
builder from Reno, Nev. The resolution also
states that the mortgage interest deduction
"may well be the most important component
of housing-related tax policy in America
today" and should not be further restricted,
he said.
"The mortgage interest deduction has been
a cornerstone of the nation's housing policy
for almost a century, and it is vital to
homeownership and healthy housing
markets," Nielsen added. "NAHB commends
Rep. Gary G. Miller (R-Calif.), who
introduced the resolution, and the more than
40 co-sponsors for their commitment to
homeownership and support for the
deduction."
Eliminating or restricting the mortgage
interest deduction would erase the emerging
stability in the nation's housing markets,
increase the cost of homeownership, make
the tax code less progressive and essentially
raise taxes on the middle class. Ultimately, it
would put more home owners underwater,
fuel more foreclosures and impede job
creation in the housing sector, where
unemployment is about twice the national
rate.
Affordability Rises to Highest
Level in Two Decades
From NAHB: The National Association
Nationwide housing affordability during the
fourth quarter of 2010 rose to its highest
level in the 20 years since it has been
measured, according to National Association
of Home Builders/Wells Fargo Housing
Opportunity Index (HOI) data released
today.
The HOI indicated that 73.9 percent of all
new and existing homes sold in the fourth
quarter of 2010 were affordable to families
earning the national median income of
$64,400. The record-setting index for the
fourth quarter surpassed the previous high of
72.5 percent set during the first quarter of
2009 and marked the eighth consecutive
quarter that the index has been above 70
percent. Until 2009, the HOI rarely topped
65 percent and never reached 70 percent.
"Today's report shows that housing
affordability at the end of 2010 was at its
highest level since we started computing the
HOI," said Bob Nielsen, chairman of the
National Association of Home Builders
(NAHB) and a home builder from Reno,
Nev. "However, while this is good news for
consumers, both home buyers and builders
continue to confront extremely tight credit
conditions, and this remains a significant
obstacle to many potential home sales."
Indianapolis-Carmel, Ind., was the most
affordable major housing market in the
country for the second consecutive quarter,
after relinquishing for a quarter the top spot
it has held for five years. In Indianapolis,
93.5 percent of all homes sold were
affordable to households earning the area's
median family income of $68,700.
Also ranking near the top of the most
affordable major metro housing markets
were Youngstown-Warren-Boardman, Ohio-
MARCH 2011 7
Additionally, removing or scaling back the
mortgage interest deduction would shrink the
local tax base of many communities,
prompting cash-strapped state and local
governments to cut jobs and essential
services or raise taxes.
"The nation's home builders strongly
believe that Congress should not tamper with
the mortgage interest deduction. Members of
the House of Representatives should
demonstrate their belief in the value of
homeownership and co-sponsor this
important resolution," Nielsen said.
"Americans overwhelmingly oppose any
action by Congress to tamper with the
mortgage interest deduction, according to a
nationwide survey of likely voters that
NAHB commissioned last fall," he added.
"Almost 80 percent of the people surveyed
said they support retaining federal tax
incentives to promote homeownership. I
encourage people who support the mortgage
interest deduction to contact their
Representatives and ask them to co-sponsor
H. Res. 25," Nielsen said. "Members of
Congress need to know that there is
widespread support for the mortgage interest
deduction and that their constituents do not
want it to be eliminated or restricted."
Additional information about H. Res. 25
and contacting members of the House of
Representatives is available in the "Take
Action and Stay Connected" section of
NAHB's mortgage interest deduction
website,
SaveMyMortgageInterestDeduction.com.
Give your customers 
Pa.; Syracuse, N.Y; Warren-Troy-
Farmington Hills, Mich.; and Detroit-
Livonia-Dearborn, Mich.
the ‘option of the sun’
Among smaller housing markets, the most Now more than ever,
affordable was Elkhart-Goshen, Ind., where
97.0 percent of homes sold during the fourth El Paso home buyers
quarter of 2010 were affordable to families are planning for the
earning a median income of $58,600. Other future.
smaller housing markets near the top of the
index included Lansing-East Lansing, Mich.;
Kokomo, Ind.; Mansfield, Ohio; and Bay
City, Mich.,.
New York-White Plains-Wayne, N.Y.-N.J.,
again led the nation as the least affordable
major housing market during the fourth
quarter of 2010. In New York, more than a
fourth — 25.5 percent — of all homes sold
during the quarter were affordable to those
earning the area's median income of $65,600.
This was the 11th consecutive quarter that
the New York metropolitan division has held
this position.
The other major metro areas near the Border Solar can help
bottom of the affordability index included
San Francisco-San Mateo-Redwood City,
you offer your
Calif.; Honolulu; Los Angeles-Long Beach- customers solar power
Glendale, Calif.; and Santa Ana-Anaheim- as a sensible
Irvine, Calif., respectively.
Santa Cruz-Watsonville, Calif. was the
alternative.
least affordable of the smaller metro housing
markets in the country during the fourth
quarter. In Santa Cruz, 45.0 percent of the The future starts
homes were affordable to families earning today.
the median income of $84,200. Other small Crossing to Clean Energy
metro areas ranking near the bottom included
Ocean City, N.J; San Luis Obispo-Paso 7365 Remcon Circle
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Robles, Calif.; Laredo, Texas; and Santa El Paso, TX 79912 facebook:
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 MARCH 2011

EPAB ON THE SCENE

Rally Day 2011
A contingent of El Paso Association of
Builders members descended on the state capital
on February 23 to meet with the El Paso elected
delegation. Members who went on the trip were
led by President Greg Bowling. Joining Greg
was Frank and Ruth Arroyos; Kelly Sorenson;
Ryan Harding; Mike Santamaria; Bruce Meyer;
Lance Van Deman; Sam Shallenberger; Rudy
Guel; Edmundo Dena; Bobby Bowling IV;
Randy Bowling; Doug Borrett; Gus Loy; Andy
Arroyos; John Chaney and staff Angie, Margaret
and Ray.
Meetings were held with each of our State
Representatives and with Senator Jose
Rodriguez’s chief of staff. Productive was the
word used most often as the El Paso delegation
joined 1000 other TAB members for this event.
A day long of visits culminated in a reception at
the Driskill Hotel where State Rep Marisa
Marquez joined us to celebrate a good day.
President Greg Bowling sponsored dinner on
Tuesday, February 22 at Fogo De Chao, one of
Austin’s great places to dine. All in all the trip
was a great way for members to connect with
legislators and to understand better the role of the
Texas Association of Builders.
BUILD a better social network!
find us on facebook:
elpasobuilders
10 MARCH 2011 Builders Outlook
Home Builders Call on
Congress to Repeal 1099
Reporting Requirements

The National Association of Home

Builders (NAHB) called on Congress today
to repeal all new expanded 1099 reporting
requirements imposed in recent laws that
will harm job creation and place a major
paperwork and cost burden on the nation's
small businesses.
Testifying on behalf of NAHB before the
House Small Business Committee, Mike
Kegley, a builder from Union, Ky., and
president of the Home Builders Association
of Kentucky, told lawmakers that the
collection of W-9 forms, monitoring
payments over the course of a year, and
additional staff time will cost individual
small businesses thousands of dollars per
year.
Under the Patient Protection and
Affordable Care Act approved last year,
starting in 2012 businesses will have to file
an IRS Form 1099 for each vendor from
whom they spend more than $600 in goods
or services in any given tax year.
Kegley, who built six homes last year and
employs seven workers, estimates his firm
would have had to file an additional 173
forms for 2010 had the law been in effect.
"It would have cost my company $6,400
to obtain and catalog the W-9 forms and
$2,600 to generate the additional Form
1099s, for an estimated total of $9,000," he
said.
These burdensome tax paperwork
requirements would make it more difficult
for small businesses to put new employees
on their payrolls, he added.
"Rather than hiring additional workers to
expand and grow, small businesses will be
spending money on accountants and
bookkeepers in order to keep up with these
new requirements," he said.
The real onus does not necessarily fall on
businesses issuing the additional forms,
Kegley cautioned.
"For each small business that will now
generate an additional 40, or 80 or 100 new
1099 forms, businesses large and small that
sell goods will receive thousands, if not tens
of thousands, of additional forms that they
will have to match against their records.
Businesses will be overwhelmed," he said.
NAHB also believes that the expansion of
the 1099 requirements will make small
businesses less competitive relative to
larger, corporate businesses because smaller
firms will take steps to reduce their
paperwork burdens by purchasing from
fewer sources.
"Rather than purchasing nails from the
local hardware store, lumber from the
specialized dealer and drywall from any
supplier, builders may simply take all of
their business to a larger retailer to reduce
the resulting paperwork from each
purchase," said Kegley. "Small product
suppliers will pay a price."
While all small businesses will be hit by
the broader 1099 reporting requirements
next year, the Small Business Jobs Act of
2010 stipulates that independent landlords
as of Jan. 1, 2011 must now submit 1099s
for transactions totaling more than $600 in a
year.
"By imposing this change in the law with
less than three months notice, we believe it
is reasonable to say that landlords have been
set up for failure when it comes to
compliance," said Kegley. "NAHB urges
Congress to reexamine the wisdom of
imposing these burdensome requirements on
independent landlords and, ultimately, to
repeal them."
Meanwhile, the Senate on Feb. 2 adopted
an amendment to the Federal Aviation
Administration reauthorization bill to repeal
the new 1099 reporting requirements in last
year's health care law.
"I applaud the Senate's action last week
and urge the House to follow suit," said
Kegley.
From NAHB
Builders Outlook MARCH 2011 11
Your EPAB Membership can make
a vacation easy on your wallet!
Members of the El Paso
Association of Builders
enjoy many exclusive
discounts from some of the
finest merchants in the
country.

For Example:

As a member of the National

Association of Home Builders
you will receive an additional
20% off the “Best Available
Rate” at participating locations
every time you travel.

For information go to:

www.nahb.org
call 778-5387

EL PASO ASSOCIATION OF BUILDERS
ASSOCIATES COUNCIL
SENERCON Young  Designers
Southwest Energy Conservation, LLC

Change the World...

One Home at a Time...

The Associates Council presents

The EPAB/Young Designers Golf
Tournament

Painted Dunes
Golf Club
Tuesday April 19

www.swher.com Registration: 11 a.m. Shotgun start: 12:30 p.m.

5400Remcon
7365 SuncrestCircle
Dr. C-6 El Paso,
El Paso, TX Tx. 79912
79912
Ph. (915) 613-4168 Call 778-5387
Fx. (915-833-6437 to sign up your team or for
www.energystarelpaso.com
sponsorship opportunites
12MARCH 2011 Builders Outlook
Builders Outlook MARCH 2011 13

Membership News
UPCOMING EVENTS
March 9 March 23 April 13 April 21
Board meeting 3:30 Land Use Meeting Board Meeting and Fall Protection
Associates Council 3:30 12:00 General Meeting 1:30 – 4:30
El Paso Association of Builders El Paso Association of Builders 3:30 El Paso Association of Builders
El Paso Association of Builders
March 16 April 5
2011 NAHB Legislative Associates Council April 19
Conference 3:30 Young Designers Golf
Washington, DC El Paso Association of Builders Tournament
Painted Dunes

RENEWALS SODA SPONSOR
Display Service Masco Contractor Services
Thanks to our MARCH SODA SPONSOR:
Ferguson Enterprises, Inc. dba Gale Insulation
Mountan Vista Builders
Gaddy Construction PLC Construction Finishes
Galaxy Homes Solar Smart Living
OSHA FALL COMPLIANCE CLASS
Lawyers Title
The United States Department of Labor's Topics
Occupational Safety and Health • Hazards
Administration (OSHA) has issued a directive • Recognizing hazards
NEW MEMBERS rescinding the Interim Fall Protection • The six foot rule
• Fall Protection Systems
Compliance Guidelines for Residential
• Types of fall protection systems
Construction.
• Guardrails
• Warning Lines
Regulation states as an employer, you shall provide
Southwest Chimney & Ann’s Home Solutions a training program for each employee who might be
• Safety Monitors
• Covers
Stoves & Air Duct Cleaning of El Paso, LLC exposed to fall hazards.
• Personal Fall Protection
• The Body Harness
Contact: Paul Kennedy Contact: Ann De La O Date: April 21, 2011 1:30pm-4:30pm
• The Body Belt/Safety Belt
Location: EPAB Office, 6046 Surety Drive
• Lanyards
11385 James Watt, B2 2609 Samoa Course Length: 4 Classroom Hours
• Anchorage point
El Paso, Texas 79936 El Paso, Texas 79925 Course Objectives: This training teaches the
• Swing falls
• Locking snaphooks
915-591-6998 915-412-6843 importance of recognizing fall hazards, using the
correct fall protection, providing a detailed illustra-
• Protection from falling objects
tion of the various types of fall protection and how
Cost $35. Call EPAB 778-5387 for reservations
to properly use them to avoid a deadly fall.

EL PASO ASSOCIATION OF BUILDERS
ASSOCIATES COUNCIL
Young  Designers

The Associates
Council presents
The EPAB/Young
Designers Golf
Tournament

Painted Dunes
Golf Club
Tuesday April 19

Registration: 11 a.m.
Shotgun start: 12:30 p.m.

Call 778-5387 11395 James Watt, Suite A-11 79936

to sign up your team or for
sponsorship opportunites
915-633-8002
14 MARCH 2011
Industry Reports
Associates Council
Sam Shallenberger
Wholesale Supply
Hello, do you want to go to Vegas?
I’d like to say hello and introduce myself to
the Builders Outlook reader. I’m Sam
Shallenberger, President of Western Wholesale
Supply, Inc., and the new Associates Council
Chairman. I have been an active member in this
association for well over two decades and have
been involved in many of our association’s
events. Over the years I can attest that the
Associates in this membership are vital and very
important to the health and welfare of the El
REALTOR/Builder
Angela Ochoa
GEPAR
Eight Essential Facts about Claiming the
First-Time Homebuyer Credit
Provided by: IRS Newswire
If you purchased a home in 2010, you may be
eligible to claim the First-Time Homebuyer
Credit, whether you are a first-time
homebuyer or a long-time resident purchasing
a new home. The purchaser must have been at
least 18 years old on the date of purchase; for
a married couple, only one spouse must meet
this age requirement. A dependent is not
eligible to claim the credit.
Here are eight things the IRS wants you to
know about claiming the credit:
• You must have bought – or entered into a
binding contract to buy – a principal
residence located in the United States on or
GUEST COLUMN
Safety Tool from OSHA
Lupe Alaniz
A&E Environmental &
Safety Consultants
Paso Association of Builders. While I may be
preaching to the choir for some, others have to
understand that I know first hand what it means
to have an association actively supporting our
home building industry in El Paso. After all it’s
a symbiotic relationship the builders and
associates have. We come together to make
sure that no one in the public domain or in the
government imposes regulations and laws that
would take away our ability to earn a living. It
is with this importance that I am so proud to be
your chairman for the rest of this year. My hat
goes off to Eric Lowenberg for his time in the
saddle. I already know that this ride may have
some bumps to it, but I promise you one thing:
I will work to ensure that the Associates voice is
strong and that Associates will work to keep
home building in El Paso a reality.
The next few months are critical to a lot of
before April 30, 2010. If you entered into a
binding contract by April 30, 2010, you must
have closed on the home on or before
September 30, 2010.
• To be considered a first-time homebuyer,
you and your spouse – if you are married –
must not have jointly or separately owned
another principal residence during the three
years prior to the date of purchase.
• To be considered a long-time resident
homebuyer you and your spouse – if you are
married – must have lived in the same
principal residence for any consecutive five-
year period during the eight-year period that
ended on the date the new home is
purchased.
• The maximum credit for a first-time
homebuyer is $8,000, half that amount for
married individuals filing separately. The
maximum credit for a long-time resident
homebuyer is $6,500. Married individuals
filing separately are limited to $3,250.
• You must file a paper return and attach Form
5405, First-Time Homebuyer Credit and
Repayment of the Credit with additional
documents to verify the purchase. Therefore,
What’s one of your top priorities for everyone
in and around your home life? I would say it
would have to be the Health, Safety and Well-
being of those around you, especially family.
So why not incorporate this mentality into the
workplace?
Sure you may not socialize with one another
while at work or socially away from work, but
we all have one thing in common, we all would
like to go home safely at the end of the day.
Often workplace safety is overlooked or
brushed aside due to deadline/time constraint,
lack of funds for proper training, lack of
things including scholarship and fun.
Fortunately we have a lot of great ways to
combine both but one event brings those
together better than others. I’m talking about
our annual Young Designers Golf Outing. This
year we will tee them up at Painted Dunes on
Tuesday, April 19. This tournament is usually
sold out pretty fast so get your teams in by
calling the EPAB office. Some advertising
opportunities also exist as well as ways for your
company to present some goodies for our
tournament goodie bag. I’d like to thank John
Chaney for his efforts with this event and the
Young Designer program.
Also for the upcoming months we are
working on two exciting new ventures. The first
is a fair or feria for the members to showcase
their products or services, mixed in with a chili
and menudo cook-off, car show and arts and
if you claim the credit you will not be able to
file electronically.
• New homebuyers must attach a copy of a
properly executed settlement statement used
to complete such purchase. Buyers of a
newly constructed home, where a settlement
statement is not available, must attach a copy
of the dated certificate of occupancy. Mobile
home purchasers who are unable to get a
settlement statement must attach a copy of
the retail sales contract.
• If you are a long-time resident claiming the
credit, the IRS recommends that you also
attach any documentation covering the five-
consecutive-year period, including Form
1098, Mortgage Interest Statement or
substitute mortgage interest statements,
property tax records or homeowner’s
insurance records.
• Members of the military and certain other
federal employees serving outside the U.S.
have an extra year to buy a principal
residence in the U.S. and qualify for the
credit.
For more information about these rules
including details about documentation and
knowledge or willingness to change. In our
line of work we always hear one epic excuse
from the experienced worker who has been
working his trade for 20+ years: “I’ve been
doing things this way for 20 years and nothing
has happened to me.” My reply is “While you
have been lucky in the way you do your job,
others doing the same job with the same
techniques as yourself have been seriously
injured, even killed. OSHA is committed to the
safety of yourself and others while you work
that is why it is required that…” and then I go
on to educate them.
Builders Outlook
crafts displays. We are working to secure the
area around the EPAB offices for this event and
hope to have a date ready to announce soon.
Secondly Las Vegas is calling and we’re
answering. Ray and I are working on a general
membership meeting three night visit to Vegas
in late May or early June. This will be an adults
only group trip. We are looking forward to
holding our meeting at a fabulous hotel with the
sights and sounds of Las Vegas as the backdrop.
Golfing, shopping, gaming and fantastic food
are what we’re talking about here. We have a
lot of interest in this and some folks have
already said they are making plans. More on
this as well soon.
If you have anything you need from me
please feel free to let me know.
other eligibility requirements for the First-
Time Homebuyer Tax Credit, visit
http://www.irs.gov/recovery.
Many of our buyers from last year purchased a
home with the intent of claiming the First-
Time Homebuyer Tax Credit. Now is the
opportunity to show your real estate expertise
by passing along this information and a copy
of their Final HUD statement.
March Meeting: 3/10/11 from 11:30-1:30 PM
at the Greater El Paso Association of
REALTORS®.
Speaker will be Desert Agave Homes and their
Education Topic will be Outdoor Kitchens.
Fostering harmony amongst home builders,
real estate professionals, and affiliate
companies.
The understanding, commitment and
implementation for a strong safety culture must
start with ownership, to management, then the
common employee. Safety is required in all
facets of life, especially the workplace. What
is the safety attitude around you?
 MARCH 2011

EPAB ON THE SCENE

Speed Networking
A smaller but enthusiastic group of Associates and Builders met for the first Speed
Networking event of the year. Thirteen Associate members showed products or services
to builders who found some new and unique products to use in their homes. As Joe
www.elpasobuilders.com Najera put it, “It’s an opportunity to see what is out there, and even if you already do
business with someone you might find they offer more than what you’re already
6046 Surety Dr. El Paso, TX 79905 915- buying,”. From the Associates side it was equally important to showcase their latest
778-5387 • Fax: 915-772-3038 wares. New member A& E Environmental and Safety was impressed. “I want to make
sure our builder members know who we are and what we do, and this venue helps me do
that. Where else can I get in to see this many builders in one day?” Lupe Alaniz said to
us.
■ executive officers The next Speed Networking opportunity will be held in the later part of the second
Greg bowling, President quarter. For information on this contact the office at 778-5387.
Tropicana Homes
del Huit, vice President
NatioNal associatioN of
Cardel Design Group
Home builders
frank arroyos, secretary/treasurer
(800) 368-5242
Cisco Homes
sam shallenberger, associates council
Wholesale Supply
Kelly sorenson, immediate Past President texas associatioN of
Vision Consultants builders
ray adauto, executive vice President (800)252-3625
El Paso Association of Builders

■ couNcil/committee cHairs
Affordable Builders Council Bobby Bowling IV
Associates Council Sam Shallenberger
Build PAC El Paso Randy Bowling
Desert Green Building Council Javier Ruiz
Industry Promotions Kelly Sorenson
Land Use Council Linda Troncoso
2010 builder member of the Year
Sal Masoud Mike Santamaria
Adams Pro AM Committee David Bogas Mountain Vista Builders
Young Designer Award John Chaney
Code Committee Kelly O’Leary 2010 Pat cox award
Randy Bowling
Home Show Sam Shallenberger
Tropicana Homes
Remodelors Miguel Herrera
Membership Drive Mike Santamaria 2010 associate of the Year
Finance Committee Kathy Carillo Javier Ruiz
Education Committee Frank Spencer Border Solar/Senercon

John schatzman award

■ advisorY to tHe board
Lorraine Huit
J. Crawford Kerr, Attorney, Firth, Johnson Cardel Design Group
& Martinez

■ board of directors
Danny Andrus, Trinity Homes Honorary life members
John Arranda, Southwest Securities Bank, FSB Brad Roe
Joe Bernal, Joe Bernal Insurance Cliff Anthes
David Bogas, EPT Communities Wayne Grinnell
Doug Borrett, Karam Co. Chester Lovelady
Edmundo Dena, Accent Homes Don Henderson
Ted Escobedo, Snappy Publishing Anna Gil
Art Garcia, El Paso Door
Juanita Garcia, ICON Custom Home Builder,LLC
Danny Gerard, Desert Agave Builders, LLC
Miguel Herrera, Simply the Best Custom Homes Past Presidents
Lorraine Huit, Cardel Design Group committed to serve
Walter Lujan, Dawco Home Builders Mark Dyer Bobby Bowling, IV
Bruce Meyer, JDW Insurance Mike Santamaria Rudy Guel
Robert Najera, Joseph Homes John Cullers Anna Gill
Kathy Parry, Hunt Communities Randy Bowling Bradley Roe
Bob Paschich, Oeste Homes Doug Schwartz Bob Bowling, III
Kathy Rose, Builders Source Del Huit Pat Woods
Regina Sanchez, Bank of Texas Herschel Stringfield EH Baeza
Sam Shallenberger, Western Wholesale Robert Baeza
Frank Torres, GMF Homes
Paul Zacour, Zacour & Associates

ePab mission statement:

■ tab state directors
Doug Borrett, Karam Co., Life Director
Randy Bowling, Tropicana Homes
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.

■ NatioNal directors
Bobby Bowling IV. © 2011 Builder’s Outlook
Demetrio Jimenez is published and distributed for the
El Paso Association of Builders
by Snappy Publishing
240 Thunderbird • Suite C
El Paso • Texas • 79912 915-820-2800