Builders utlook

www.elpasobuilders.com www.epbuilders.org
2013
issue 4
NAHB, Washington, DC -
To meet the nations growing need
for affordable rental housing and
homeownership opportunities, the
National Association of Home
Builders (NAHB) today called on
Congress to maintain its support for
vital housing tax incentives, including
the Low Income Housing Tax Credit,
the mortgage interest deduction and
real estate tax deductions.
Home building is an industry
dominated by small businesses, so
the idea of simplifying the complicated
tax rules related to business has
great appeal. At the same time, our
industry remembers painful lessons
from the 1986 Tax Reform Act, when
the commercial and multifamily
sectors experienced a downturn due
to unintended consequences, said
Robert Dietz, an economist and
assistant vice president for NAHB, in
testimony during a House Ways and
Means Committee hearing on tax
reform and residential real estate.
Moreover, when housing fares well,
it spurs job and economic growth,
Dietz added. For these reasons, we
urge Congress to be cautious and
thoughtful when it comes to housing
and tax reform.
U.S. Census data shows that more
than 40 percent of renters are rent
burdened, or pay more than 30
percent of their household income on
rent. The need for affordable rental
options remains acute. The Low
Income Housing Tax Credit (LIHTC) is
the most effective tool for the creation
of affordable rental housing. Utilizing
a public-private partnership to attract
investment, the program has
produced and financed more than 2
million affordable rental units since its
inception in 1986.
As LIHTC properties must
generally remain affordable for 30
years, they provide long-term rent
stability for low-income households
around the country, Dietz said. But
the demand for affordable housing far
exceeds the availability of financing
through the LIHTC program. The
solution is not to eliminate the most
successful affordable housing
program in the country, but to provide
it with the resources necessary to
address the shortage of affordable
housing options in our cities and
towns.
When it comes to housing and tax
reform, the spotlight typically falls on
the mortgage interest deduction, and
Dietz set the record straight on a
number of false assumptions
regarding this important
homeownership benefit.
First, we frequently hear that few
home owners benefit from the
mortgage interest deduction because
itemization is required, he said. In
fact, most home owners will claim it.
In 2009, 35 million taxpayers, or 70
percent of home owners with a
mortgage, claimed the mortgage
deduction in that year. Among all
home owners who have ever held a
mortgage, the vast majority have
claimed the home mortgage
deduction for years at a time.
Critics charge that the mortgage
interest deduction encourages the
purchase of a larger home, but these
claims ignore the role of family size.
Home owners with larger families
need bigger homes and will therefore
have a higher mortgage interest
deduction.
The need for a larger home
created the higher home loan
deduction, not the other way around,
said Dietz.
He also noted that the cost of
housing varies greatly across the
nation, so what appears to be a large
deduction for a given home in one
area may reflect a modest home in a
high-cost area.
Moreover, the mortgage interest
and real estate tax deductions are
two of the few elements in the tax
code that that account for differences
in cost-of-living.
The real estate tax deduction is an
important reminder that home owners
pay more than $300 billion in property
taxes each year. This fact is often
ignored in the federal tax debates
because these taxes are collected by
state and local governments, said
Dietz.
There is also a direct correlation
between the age of a home owner
and their resulting benefit from the
mortgage interest deduction. As a
share of household income, the
largest deductions are for those 35
and younger. The benefit of a
deduction that reduces the net cost of
monthly house payments is
particularly important to these home
buyers, who typically have less equity,
tighter household budgets, and must
meet the needs of a growing family.
Given this demographic
connection, NAHB believes that any
policy change that makes it harder to
buy a home, or forces young families
to defer home purchases, will have a
significant impact on wealth
accumulation and the makeup of the
middle class, said Dietz.
Regarding the mortgage interest
deduction rule for second homes,
Dietz said that many mistakenly think
this refers to expensive beach
property, when in reality, such homes
are often owned free and clear or
rented, which excludes the owner
from taking the mortgage interest
deduction.
In practice, the second home
deduction is important for many who
dont think of themselves as owning
two homes. Repealing the deduction
for second homes would penalize
millions of home owners who move
from an existing home and buy a
second home in a given tax year.
There would be further negative
economic consequences in terms of
lost home sales, home construction
and local tax revenues.
Noting that building 100 single-
family homes creates more than 300
full-time jobs and $8.9 million in
federal, state and local tax revenues
that helps boost local communities
and schools, Dietz said that how
housing is treated in an future tax
reform will shape the economy going
forward.
Housing provides the momentum
behind an economic recovery
because home building and
associated businesses employ such a
wide range of workers. With the right
policies in place, housing can be a
key engine of job growth that this
country needs.
Housing Tax Incentives
Critical to Maintain
Thriving Middle Class
2
Builders Outlook 2013 issue 4
STAY SAFE. CALL BEFORE YOU DIG.
If you have digging or excavation work to do, remember to call 811 at least 48 hours in advance.
Natural gas and other utility lines may be buried a few feet deep. By calling 811, utility crews can
mark locations of underground lines at no charge. The markings are done in paint and will eventually
wash away. Marking line locations can help prevent you from accidentally damaging a natural gas line.
Always call before you dig. It can help keep you and your construction crew safe, and failing to do so
can result in a $1,000 ne.*
* Texas Utilities Code 251.201 Civil Penalties
Texas Gas Service provides natural gas to more than 600,000 customers in the state of Texas, including customers in Austin, El Paso, the Gulf Coast and the Rio Grande Valley. Texas Gas Service is a division of ONEOK, Inc. (NYSE: OKE), a diversied energy company. ONEOK is the general partner
and owns 43.4 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded limited partnerships, which is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. and owns one of the nations premier natural gas liquids (NGL) systems, connecting
much of the NGL supply in the Mid-Continent with key market centers. ONEOK is among the largest natural gas distributors in the United States, serving more than 2 million customers in Oklahoma, Kansas and Texas. Its energy services operation focuses primarily on marketing natural gas and related
services throughout the U.S. ONEOK is a Fortune 500 company. For more information, visit www.texasgasservice.com. 2013
ONEOK, Inc. Oklahoma Natural Gas Kansas Gas Service ONEOK Partners, L.P. ONEOK Energy Services
I have to take my cap off to all the golfers who attended the Spring Golf Tournament,
Golf by the Rio presented by my good friends at WestStar Bank. There is no doubt that
truthfully you golfers are nuts, in a good way. I got to be around these golfers in wind
(or should I say dirt) gusts of 40 and higher miles per hour. Bad enough that I know
most of you have a hard time playing on the calmest days, but this was amazing to see.
I remember looking at Ray and Mike the pro give you guys direction, when somebody
yelled out here it comes, and everyone took off to tee off. I looked towards downtown
and there it was, big, hazy, rolling dirt coming towards us. I could only think that this
was the end. No one in their right mind would play in that, but once again I just didnt
understand the thought process for golf. The worst day on the golf course is better
than sunshine at the office someone blurted. Right, and so you guys went out into the
haze and played. Sam and I did all we could do to keep drinks in the tinas and you
did an excellent job of hanging in there. Id like to thank Sam Shallenberger and Ray
Adauto for making the event so much fun as promised. It would have been good in
great weather, but it was awesome in the crud you guys played in. My special thanks
to the womens professional council for helping and to the members who came out and
spotted on different greens. The support of the sponsors and advertisers really make
things like this happen. Im very grateful to so many but in particular to WestStar Bank,
HUNT, Time Warner, MTI Ready Mix, and Western Wholesale.
As you read this it will be time to vote in the city election. I can tell you that we have
some excellent choices in a lot of races, but we have to vote in order to get the kind of
government we want for our business and industry. One member has tossed his hat in
the ring and Id like to acknowledge Gus Haddad for doing so. Ive learned that we can
talk the talk but we need to walk the walk in order to assure the industry has responsible
government. So Im asking you to go out and vote and get information on the Charter
amendments. Im nervous that those will pass without a clear understanding by you
about what they are and what they will do if passed. Ive attended forums to educate
myself about who and what to vote for. I recommend that for you as well. Our
association does not endorse candidates but we evaluate them through the Build PAC.
The Build PAC has donated to two candidates running for City Representative, Carl
Robinson and Emma Acosta. Both have demonstrated an open door policy for issues
relating to new home construction in El Paso and have listened to us on numerous
topics. I urge you to support those who support your industry by voting. Well know by
this time next month whos in and who didnt make it. To help get your candidate in go
and vote and take your family and friends with you. Until next time, go out and sell
some houses.
Presidents Message |
El PasoDisposal
772-7495
3
2013 issue 4 Builders Outlook
Edmundo
Dena
President,
El Paso Association
of Builders
Showroom:
2131 Missouri
915 533 6045 fax 533 6096
Thomas R. Brown, Owner
I have never been to an implosion of a
building even though Ive wanted to
witness one. In two days in April all that
changed as I was witness to an implosion
and a demolition. I had mixed emotions
about watching these two events not
because I opposed them but because I
almost didnt care. Jaded with the
arguments for and against dropping city
hall and the Asarco smoke stacks caused
me to almost wish that they go ahead and
forget the hoopla. Im glad that I got a
chance to see both now, and share that
with my grandchildren. Interesting I
thought, since my grandkids will be
paying for the city hall demolition after Im
long gone. At least they can say that their
grandpa was with them when the stacks
fell, and we shared the experience of the
implosion downtown. Hearing their
excitement at the falling was interesting
because all I could think about was that
this is permanent and perhaps a once in
a lifetime event. At least for me. There
will never be smokestacks like those
again in El Paso. Im glad in a way as I
remember hacking up when the sulfur
was so thick you could taste it in the air
when I attended Cathedral. Sometimes
you would taste that stuff while trying to
eat at Lubys downtown, or walking
around UTEP. I often wondered how
ironic it was to have people in Providence
Hospital for respiratory problems, only
coming out and having to breathe that air.
Automatic patients for the hospital I
guess, and yet on the other hand I
remembered that one of my aunts and an
uncle of Margarets made a good living
working at Asarco. Theyre both gone but
for a brief moment as the large stack fell
I couldnt help but think of them and what
they would have thought. Somehow
these stacks had been connected to
many El Pasoans but now they are
gone as is the era that created them.
I had a completely different opinion of
city hall. I never liked the layout and
thought it strange that the front entrance
actually faced Mexico rather than El
Paso. Was it a beacon like the statue of
Liberty? Perhaps to some. It was an
unintended target of the violence when
bullets narrowly missed the guy who
would be in charge of the demolition,
Alan Shubert. He was almost killed by
that stray (or was it?) that hit his office,
missing him by inches, the slug
imbedded in the wall to his left. I hated
the layout and I hated that there was
never enough public parking. Of late I
disliked the security done there; thinking
that all the purse and pocket searches
meant nothing if someone is determined
to do what was done in Oklahoma City.
I hated that the building was renovated
as recently as last year when a reported
$800,000 roof job was done. I also heard
that the building still had furniture or
fixtures inside when it was blown up,
some calculations that over $500,000 of
stuff went down with the building. I get
angry that there was so much haste that
there wasnt a sale or auction for that.
But I guess since the administration was
so intent to bring it down that it really
didnt matter. A half million here, million
there and pretty soon its real money. For
that Im still angry that my tax dollars
werent properly cared for in my opinion.
I hope we never see another such
example. The only way we can
guarantee that is to vote for change. I
hope that change comes and that I never
have to see the same again in my
lifetime. I pray my grandkids dont either.
Perspective |
Ray Adauto,
Executive
Vice President
EPAB
4
Builders Outlook 2013 issue 4
Changes to city landscape made with a bang
5
2013 issue 4 Builders Outlook
The National Association of Home
Builders (NAHB) commends the
bipartisan Senate sponsors of legislation
to advance comprehensive immigration
reform and called on lawmakers to
improve the guest worker provisions in
the bill to address the significant role that
foreign workers play in the housing
industry and to help alleviate current
labor challenges that are hampering the
housing and economic recovery.
Testifying before the Senate Judiciary
Committee on the Border Security,
Economic Opportunity, and Immigration
Modernization Act (S. 744), NAHB
Chairman Rick Judson, a home builder
and developer from Charlotte, N.C.,
urged Congress to implement a new
market-based visa system that would
allow more immigrants to legally enter
the construction workforce each year.
Despite our efforts to recruit and train
American workers through the HBI Job
Corps program and other programs, our
industry faces a very real impediment to
full recovery if work is delayed or even
cancelled due to worker shortages, said
Judson. A new, workable visa program
would complement our skills training
efforts within the nations borders, and fill
the labor gaps needed to meet the
nations housing needs.
In a recent survey of NAHBs
membership, 46 percent of the builders
surveyed experienced delays in
completing projects on time, 15 percent
had to turn down some projects and 9
percent lost or cancelled sales as a
result of recent labor shortages.
Foreign-born workers have traditionally
played a vibrant and important role in
home building. Today, they account for
22 percent of the construction labor
force, according to the Census Bureau.
Moreover, trades with a high
concentration of immigrant workers also
tend to have more vacancies and labor
shortages. There are currently 116,000
unfilled positions open in the construction
sector a post-recession high.
While the W Visa program that
addresses a guest worker program for
the low-skill sector within Senate bill S.
744 reflects a good-faith attempt on the
part of lawmakers to address a serious
concern, NAHB believes the program is
unworkable for the residential
construction industry.
First and foremost, the program
wrongly singles out the construction
industry with a discriminating set of rules,
including an arbitrary and meager cap
that not only ignores but rejects the value
of the housing industry to the nations
GDP, said Judson. Our industry, which
in normal times accounts for more than
17 percent of the nations total economic
output, should be afforded the same
opportunities as any other sector of the
economy. Congress must reassess this
critical flaw in the legislation.
Judson also outlined other
components of the W Visa program as
areas of concern:
The 8.5 percent unemployment
trigger. Putting an unemployment
trigger in the program ignores the
simple fact that immigrant workers
and native-born workers sometimes
perform jobs that are independent.
Moreover, with the current
unemployment rate well below 8
percent, labor shortages in all facets
of the industry including framers,
carpenters, bricklayers and
weatherization workers continue to
undermine the housing recovery.
Prevailing wages. Employers will
already have to pay fees for self-
registration and any positions
needed. Further adding a complex
prevailing wage scale to the program
will deter private small business firms
from taking advantage of it.
Employees should be paid market
rate, or actual wages.
The inclusion of a commission in the
W Visa program. The marketplace is
best-suited to make wage and worker
shortage determinations, not a new
bureaucratic entity, said Judson. The
most accurate way to measure
whether immigrant workers are
needed is for employers to try, and
either succeed or fail, to hire U.S.
workers.
Complete portability. Under this
provision, a registered employer
faces the stark reality that a W Visa
holder has the option to quit and
work somewhere else beginning on
the very first day of work. NAHB
believes that it is only fair that
employers have some assurances
that after navigating a confusing and
expensive process, the visa holder
will actually have to show up and
work for the employer who sponsored
the worker. This concern is even
more pronounced for the construction
industry, considering the meager
15,000 visa cap. Employers should
receive a credit for losses incurred.
The El Paso Association of Builders is proud to now offer an
individualized retirement plan created for you.
ThE EPAB MEMBEr rETirEMEnT PlAn
As an EPAB member, you have the unique opportunity to take control of
your retirement investing.
We understand the challenges of retirement planning. Thats why we have
partnered with Employee Benefits of El Paso to offer you the opportunity
to create an individualized retirement plan under the umbrella of the El
Paso Association of Builders.
investments
irAs
401K
now is the time to start planning for the next phase of your life. let your
membership with EPAB help you get there.
Call (915) 542-0900
for more information today.
Prior to selecting investment options for your plan you should consider the investment objectives, risks, fees and expenses carefully. For this and other important information, you obtain
prospectuses for mutual funds, any applicable annuity contract and the annuity's underlying funds, and/or additional disclosure documents from the appropriate retirement plan representative. Read
them carefully.There is no guarantee that participation in any retirement plan will result in a profit or that your account will outperform a self-managed portfolio. Please consult with your financial
planner, attorney and/or tax adviser as needed.
Builders to Congress: Improve Immigration Bills Guest Worker Provisions
6
Builders Outlook 2013 issue 4
The Economy
A Tale of Two Households
During the last year and especially the last
five or six months, the economic data have
been of two minds. On one hand, household
net worth is way up, the stock market has
been setting new highs and the number of
millionaires is at 9 million, just below where it
was before the recession.
At the same time, we read
that the amount spent at
restaurants, bars, and
department stores
recently fell as households
compensate for higher
gas prices and payroll tax
increases by reining in
discretionary spending.
Which is it? Is the
economy getting better or
are households hunkering down? Turns out,
its both. Behind this seeming paradox is the
growing gulf between Americas wealthier
households and its poorer ones. And the past
recession has put this gap into bold relief.
While suffering during the Great
Recession, wealthier households, because
they are more likely to own equities and a
home, have enjoyed the recent rise in house
prices and the stock market, as well as the
special year-end dividends that were timed to
avoid tax increases that went into effect the
first of this year. In addition, because they
can borrow money at todays historically low
rates, they are spending more on vacations,
cars and other high-end discretionary
purchases as their financial situation
improves. Moreover, over the last few years
their incomes have been rising, something
the majority of the population has not been
experiencing.
By contrast, households in the bottom half
of the income distribution are having a tough
time of it. The combination of stagnant wages
in the years before the Great Recession,
large job losses during the recession, current
high levels of unemployment, the dramatic
increase in those unemployed 12 months or
more, high gasoline prices and delayed
income-tax refunds are forcing these
households to forgo many purchases. As
such, retailers that cater to lower and middle-
income Americans are feeling the pinch.
Worse, the payroll tax hike will probably take
three or four months before its impact is fully
felt.
Fortunately, those in the top half of the
income distribution are doing well and they
pack a lot of retail punch. The top 20% of
households account for 38% of all spending
while the top 50% of all households account
for 70% of all spending. By contrast, the
bottom quintile is responsible for a tad less
than 9% of all spending. And so far, higher
income households have been carrying the
load, with spending most recently rising at a
month-over-month rate of 0.7%, the best level
since a 0.8% gain in September 2012.
Despite high-income households facing
higher taxes due to the expiration of the Bush
tax cuts and everyone facing the vagaries of
the sequester, the economy is not on the
ropes. A diet of dirt-low interest rates, a
booming energy sector, and solid
improvement in the all-important cyclicals
including autos, big ticket items, business
fixed investment, and most importantly
homebuilding, should translate into increases
in middle- and lower-class employment and
(hopefully) wages, and thus more household
spending among those doing relatively little of
it now.
Elliot Eisenberg, Ph.D. is President of
GraphsandLaughs, LLC and can be reached
at Elliot@graphsandlaughs.net. His daily 70
word economics and policy blog can be seen
at www.econ70.com.
Elliot Eisenberg
The El Paso Association of Builders is proud to now offer an
individualized retirement plan created for you.
ThE EPAB MEMBEr rETirEMEnT PlAn
Even if you already have a retirement plan in place, it is well worth your
time to talk to us about the new options designed for members of the El
Paso Association of Builders.
We understand that when it comes to retirement planning, saving every
dollar can add up. Thats why we have partnered with Employee Benefits
of El Paso to offer you the opportunity to create an individualized
retirement plan under the umbrella of the El Paso Association of Builders
that can help reduce set up fees and other associated expenses.
investments
irAs
401K
now is the time to start maximizing your plan for the next phase of your
life. let your membership with EPAB help you get there.
Call (915) 542-0900
for more information today.
Prior to selecting investment options for your plan you should consider the investment objectives, risks, fees and expenses carefully. For this and other important information, you obtain
prospectuses for mutual funds, any applicable annuity contract and the annuity's underlying funds, and/or additional disclosure documents from the appropriate retirement plan representative. Read
them carefully.There is no guarantee that participation in any retirement plan will result in a profit or that your account will outperform a self-managed portfolio. Please consult with your financial
planner, attorney and/or tax adviser as needed.
Out with the Old
The city of El Paso had a very
interesting weekend of demolishing
three structures in two days, City Hall
and the Asarco Smokestacks. The
stacks came down after considerable
environmental challenges and a last
minute appeal to keep at least one
standing as a historic monument.
Once considered the tallest
smokestack in the world the larger
stack fell to the ground in about 8
seconds, after the base of the
structure was exploded. The second
smaller stack was dropped first in
what was seen by thousands of
people as an end of an era. That
smaller structure, still over 30 stories
tall, made an impact that was
registered on seismic instruments at
UTEP and a cloud of dust that for the
most part was contained around the
property. Last minute stunts by some
parachutist looked to delay the drops,
but with an all clear the stacks came
down.
City hall was a little different in that
the 10 story building had been
prepped to drop on top of itself, kind
of a folding effect. Surrounding
businesses were shut down and
apartment dwellers next to the site
cautioned to stay away from windows
and the debris. In a matter of
moments the 30 year old building
went down as the way is being
cleared for the new Triple A ball park.
In with the New
The EPAB General Meeting for April
was held at the El Paso Club with
featured speaker City of El Paso
Chief Engineer Alan Shubert. His
presentation on the construction of
the new Triple A ballpark showed the
members how much work has already
gone into the project and how much is
left to do. Part of the work that was
to be done was the successful
demolition of city hall, the site for the
new ball park. Three days after the
presentation Alan accomplished his
mission as city
hall was
imploded. Work
at the site
continues with
removal of debris.
Our thanks to
Alan for a very
informative
presentation.
7
2013 ISSUE 4 Builders Outlook
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Builders utlook on the scene |
The 2013 Spring Golf tournament was
titled Golf by the Rio. It couldve easily
been Gone in the Wind for what turned out
to be the windiest day of the year actually
made the tournament a challenge and a
unique golfing experience. The tournament
was held at the Ascarate Golf Course, one
of El Pasos oldest and closest border golf
courses in the country. Twenty six teams
teed off at the one oclock shotgun start,
directly into a cloud of dust kicked up by
high winds. The teams hung in there
through the wind and dirt and most com-
pleted the round. At the dinner award the
topic was the difficulty of playing in those
conditions and how everyone compensated
or gave up. I have never played in these
conditions, said Rudy Guel. I know it was
difficult to play but it was fun in a strange
way, he continued.
Tournament Chairman Sam
Shallenberger praised the teams for playing
and gave kudos to those who actually fin-
ished. I cant begin to tell you how many
times Edmundo and I encountered guys
laughing because of the conditions, he
said. It was either laugh or cry and because
there was so much wind the afternoon
appeared to be a part of a Martian land-
scape instead of something earthly. When
you hit the ball you really had no way of
telling where it would go, said tourney play-
er Frank Torres. I know this course so well,
but it was a totally different experience
today with these winds, Torres continued.
WestStar Bank was the presenter and
participant in the tournament. I have to tell
you that had it been a regular day we would
have had a great tournament, but with the
weather this tournament will go down as
one for the records, said Henry Tinajero of
WestStar. His comments were echoed
over and over as familiar faces were cov-
ered in sand. One observer said that there
were some interesting faces at the dinner.
I think that there was more dirt on my face
than in my yard, said John Reich of Texas
Gas. This was a blast if for no other rea-
son that now we can take playing in high
winds off my bucket list, he continued.
The tournament was played on the near-
ly 60 year old public course for the first time.
It was billed as a pachanga, slang for
party and it turned out exactly like that.
One thing that happened was that survival
was the game, not golf, said
Shallenberger. There wasnt any course
records broken and if there had been Im
sure the other players wouldve screamed a
challenge, he continued.
Mike Smith, PGA Pro at the course said
that the day was one of the worst hes seen
in a long while, but added that he was
amazed at how much fun everyone was
having. I can tell you that every time we
went out there we didnt see anyone com-
plaining more than usual, as a matter of fact
they appeared to just go with it, Smith said.
The Womens Professional Council sold
mulligans for scholarship and also did some
of the dirty work of being witnesses out on
the course. I want to thank the council
members for coming out and helping
today, said Lorraine Huit, WPC chair.
Holy smokes, I cant believe Im out here,
said Beverly Clevenger. Her reaction was
shared by all the members who withstood
the wind and sand to bear witness on long
drives, closest to the pin, and other holes.
Arturo Guerra with McCoys had a ring side
seat to the action as he and his wife spotted
on a par three hole. Man, it got tough out
there, but we had a ball with everyone
being so fun to be around, he said as they
enjoyed the inside of the clubhouse.
The dinner sponsored by Western
Wholesale Supply was held in the dining
room after the tournament. Awards were
presented for the top three team scores and
for long drive, close to the pin, and in ran-
dom drawings. No one captured the
$10,000 cash award for a hole in one on
number 16. The wind made it nearly
impossible for someone to hit, but it was fun
watching the ball go everywhere but on the
green, said Joe Bernal, Employee Benefits
of El Paso principal and sponsor of the con-
test. It would have been aan absolute mir-
acle if someone had hit it, but at least they
had the chance, he continued.
Plans are underway for the fall tourna-
ment that is designed for better play. Our
next event will be one for the real serious
golfers and will be challenging. I just dont
think we want to invite the wind to that one,
said Shallenberger.
Goodie bags and beverage cart spon-
sored by HUNT, Time Warner. Beverage
stations provided by Tony Mullen at MTI
Ready Mix.
Team tournament winners: 1st place:
Steve Raney team; 2nd place, Tropicana
Homes; 3rd place, Rudy Guel Construction.
Long Drive went to Dan Ruth, Millenium
Homes; Piata hit went to Henry Tinajero,
WestStar Bank.
Golf Tournament at Ascarate - Pachanga!
2013 issue 4
With tight mortgage lending
standards preventing well-qualified
home buyers from obtaining home
loans and impeding the housing
and economic recovery, the
National Association of Home
Builders (NAHB) today expressed
support for congressional efforts to
reform the Federal Housing
Administration (FHA) but urged
lawmakers to proceed in a cautious
manner to avoid any disruptions to
the nations housing finance
system.
Testifying before the House
Financial Services Subcommittee
on Housing and Insurance, NAHB
First Vice Chairman Kevin Kelly, a
builder and developer from
Wilmington, Del., pointed out the
vital role that FHA played to help
the housing sector emerge from its
worst downturn since the Great
Depression.
While there is no doubt that the
housing finance system needs to
be reformed, the contributions that
the FHA made during the economic
downturn underscore the need for
a government backstop for both the
primary and secondary mortgage
markets, said Kelly. In times of
crisis, private sources of mortgage
credit have been unable or
unwilling to meet housing capital
needs.
Without government support for
home purchasing and refinancing,
Kelly warned lawmakers that the
nations mortgage markets will
grind to a halt in times of economic
stress and uncertainty.
In 2006 before the housing
downturn hit, FHAs share of the
market was a meager 3 percent as
private financial institutions
boasted a healthy presence. When
the housing downturn hit, there was
a role reversal, as private players
fled the market and FHA-insured
mortgages became the only credit
option for first-time home buyers,
minorities and those with limited
downpayment capabilities.
This dramatic shift is evidence
that FHA is performing its mission
of providing the federal backstop to
ensure that every creditworthy
American has access to a stable
mortgage product, said Kelly. As
the private market assumes a
greater role in the mortgage
marketplace, maintaining an
appropriate level of government
support is essential to preserve
financial stability, promote investor
confidence and ensure liquidity and
stability for homeownership and
rental housing.
Noting that the Federal Reserve
and leading economists have
warned that overly restrictive
underwriting requirements are
preventing creditworthy borrowers
from accessing mortgage credit,
Kelly called on lawmakers to take a
long-term, holistic approach to
housing finance reform.
Changes to FHAs programs
cannot be separated from the
larger discussion of reforming the
complex housing finance system,
including future reforms to Fannie
Mae and Freddie Mac, he said.
NAHB urges Congress to proceed
cautiously and not to significantly
alter the role of FHA programs.
Housing has led America out of
every economic downturn and can
do so again if the future policies
regarding housing finance reforms
are addressed in a manner that
provides liquidity for the entire
housing sector, he added.
10
Builders Outlook 2013 issue 4
FHA Reform Efforts Must Ensure
Borrowers Have Access to
Affordable Home Loans
11
2013 issue 4 Builders Outlook
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12
Builders Outlook 2013 issue 4
Expert Advice
Of the 45 percent of employees who
had access to a dental benefit plan
through their employer, 78 percent
participated, making dental benefits a
very popular offering. Will the
Affordable Care Act change all that?
The vast majority of Americans with
dental insurance (98 percent) have
coverage through a standalone dental
plan, or a plan sold separately from
medical coverage. Whether written on
a group or individual basis, the
Affordable Care Act (ACA) does not
apply to this type of excepted health
plan.
Although the ACA might not apply to
your employee dental plan, it could
affect dental benefits under your group
health plan.
The ACA and Dental Benefits
Starting in 2014, all health plans
offered on the individual and small
group markets must offer a
comprehensive package of items and
services known as essential health
benefits (EHB). These EHBs must
include pediatric oral care.
This means medical plans for small
groups and individuals, whether sold
on an exchange or not, must include
benefits for oral health risk
assessments and screenings and
treatment for dental cavities (caries)
with no cost-sharing. Medical plans do
not have to cover these services for
adults.
In November 2012, the U.S.
Department of Health and Human
Services (HHS) provided states with
two benchmarking options for
supplementing coverage in plans that
do not include coverage for pediatric
dental benefits. The first option is to
add benefits included in the FEDVIP
(Federal Employees Dental and Vision
Insurance Program) dental plan with
the highest national enrollment. The
second option is to supplement with
the benefits available under that states
CHIP program of health benefits for
low-income children, if applicable.
The problem with this approach is
that these plans provide richer
benefits than the typical small group
dental plan. The National Association
of Dental Plans (NADP) estimates the
cost of covering a child under a small
group dental plan at about $21 per
child per month without orthodontia
benefits, and at about $23.80 per
month with orthodontia benefits at 50
percent coinsurance (the insured pays
half and the insurer pays half of
covered charges). This compares to a
monthly cost of $27.90 for benefits
under the FEDVIP plan or $32.05 per
month under the CHIP standard.
Evelyn Ireland, NADPs executive
director, told Medscape Medical News
(November 29, 2012) that the price
difference due to benefits required by
the ACA could cause about half of the
adults who pay toward dental benefits
through small employer plans to drop
their own coverage, since their children
will have dental benefits through the
group medical plan. If your
organization requires employees to
share premium costs for dental
coverage ( and the majority of
employers do, with 54 percent
requiring employees with single
coverage to share costs, and 67
percent requiring employees with
family coverage to do so), be prepared
for changes in dental plan takeup rates
in plan years 2014 and later.
The Importance of Dental Insurance
Lower dental plan participation rates
could cause more health problems in
the long term. More than one-third of
adults surveyed for the Surgeon
Generals study on oral health (2000)
had not visited a dentist in the past 12
months. Fewer adults with dental
benefits could mean that number will
increase. Laurence R. Weissbrot,
FSA, MAAA, director of actuarial and
underwriting at Northeast Delta Dental
in Concord, N.H., says that 75 percent
or more of the people who have dental
coverage see their dentists on a
regular basis. Fewer than 50 percent
of people without dental coverage do
so.
Unfortunately , oral health
conditions can progress rapidly without
treatment. Most adults show signs of
periodontal or gingival (gum) diseases,
with about 14 percent of those aged 45
to 54 having severe periodontal
disease.
The Surgeon Generals report
points out that oral health is integral to
general health. You cannot be
healthy without oral health. Oral
diseases are progressive and
cumulative and become more complex
over time. They can affect our ability
to eat, the foods we choose, how we
look , and the way we communicate.
These diseases can affect economic
productivity and compromise our
ability to work at home, at school, or
on the job.
Employees who drop their employer
based coverage will be able to buy
stand alone dental insurance on an
individual basis. However, Weissbrot
points out that individual buying
coverage on insurance exchanges will
lack the double tax advantages
employer-provided benefits enjoy:
employers can deduct premiums as a
business expense, and employees do
not have to report their value as
income.
Many employers, even some smaller
employers, self-insure dental benefits.
Even when they add the cost of using
a third-party administrator to manage
their plans, some employers may save
money on dental benefits this way.
Although standalone health
reimbursement arrangements (HRAs)
will not meet the ACAs no annual
limit requirement, a dental HRA might
fall under the excepted health plan
exemption from ACA requirements.

Dental Benefits and the Affordable Care Act
years
EL PASO
BUILDERS
A S S O C I A T I O N O F
B U I L DI NG E L PAS O S F U T U R E S I NCE 194 6
www.elpasobuilders.com
H
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Coto Boilcio C Loxor, Li.io
D
ecaoes ol D
esign
A look at the past sixty live years ol home builoing
in El Faso ano what we can expect next
Special 65th anniversary edition
Latest kitchen trenos
Decor:What`s in 8 out
Reserve your advertising space in
the 2013 edition of
DREAM HOME
The El Paso Association of Builders
exclusive magazine featuring the absolute
very best in custom home building and
luxury living.
Call Margaret today at 778-5387
Joe Bernal
Employee Benefits
of ElPaso
NOW is the best time
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Ahora es el
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ABC SUPPLY CO. INC.
EL PASO STAR READY MIX
MARTHA TAPIA
AC REFRIDGERATION
ENERGREEN ENERGY STAR RATERS
MARTIN DE LEON CARPET SERVICE
AFFORDABLE WINDOWS
E P TEMPLINE
MARTINEZ IRON WORKS
AUGUSTIN SANCHEZ
ESS ENVIRONMENTAL & SAFETY
SOLUTIONS
MECHANICAL TECHNOLOGIES
ALBRITE ELECTRIC CO., INC.
EVERST HOMES
MILLENNIUM HOMES
ALFONSO MAESE
FIRST LIGHT FCU
MOUNTAIN VISTA BUILDERS
ALIANZA PLUMBING
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NORTHEAST PRINTING
AMERICAN WEST DOOR, INC.
FRANKLIN BUILDING MATERIALS
PEDRO RAMIREZ
AMERICH
GABRIEL HIGAREDA
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ANDRES MORALES GRADING
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PH CONSTRUCTION
ANTONIO MARTINEZ
GARDNER TURFGRASS
POINTMAN ENTERPRISES
ARTchitecture
HADDAD MORTGAGE GROUP
POLAR HEATING & COOLING
Bs TILE EXPRESSTIONS
HERNANDEZ CONSTRUCTION
PREWIRE OF EL PASO
BACHMANN & LUTHI REAL ESTATE
HIGH TECH ELECTRIC
Q MARTINS
BARNETT & BENNETT CONSTRUCTION
HILDAS JANITORIAL
QUALITY GRANITE
BCR CONSTRUCTION
HOME WARRANTY OF AMERICA
R. C. DRYWALL
BENITO CASTRO
H P CONSTRUCTION
RAMIREZ HEATING & COOLING
BOCK & ASSOCIATES
HUB INTERNATIONAL
RAUL CALDERON
BRUNSON PUMP SERVICE
HUITT-ZOLLARS
RICHMAN GROUP
C. ALVARADO
HUMANA, INC.
RIO BRAVO TITLE
CABINET IDEAS
IDS INTERIOR DESIGN SOLUTIONS
SALVADOR GUERECA
CARRETES PLUMBING
IVANS PUMPING SERVICE
SATURNINO SUAREZ
CESAR GONZALEZ
JAMES HERREN
SERGIO GUZMAN PLASTERING
CHINOS CONSTRUCTION
JAVIER JARAMILLO PLUMBING
SERVAZ PLUMBING
COM CORP OF EL PASO
JOHNNYS GENERAL CONSTRUCTION
SKI HEATING & AIR
CROWN HERITAGE HOMES
JORGE MARTINEZ
SOLAR COMMUNITY
CUNNINGHAM DISTRIBUTING
JOSE HERNANDEZ
SOUTHWEST GARAGE DOOR
D.CHEVALIER ELECTRIC, INC
JURADO GRANITE
STEWART SOLUTIONS
D.R. HORTON
KB REALTY
TEXAS TITLE CO.
DAKOTA HOMES
LASER TECH
THE BICYCLE CO.
DAVALOS INC.
LEC ENGINEERING
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DEMCON DISPOSAL MANAGEMENT
LEOS GRANITE
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DIAZ CONSTRUCTION
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P. O. BOX 5094
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575-887-4013
Membership News
Thanks to our
APRIl
sODA sPONsOR:
Carefree homes
11395 James Watt, Suite A-11 79936
915-633-8002
13
2013 Issue 3 Builders Outlook
www.elpasobuilders.com
www.epbuilders.org
UPCOMING EVENTS |
MAY 9
BOARD MEETING
12 NOON
WEsTERN WhOlEsAlE
1345 GERONIMO
JUNE 13
BOARD MEETING
11:00
GENERAl MEETING
12:00 NOON
El PAsO ClUB
ChAsE BANK BlDG. DOWNTOWN
JUNE 21 JUlY 7
PARADE OF hOMEs
ThE FAlls AT CIMARRON
JUNE 24-25
sUNBElT shOW
sAN ANTONIO, TEXAs
For the latest updates &
event information, visit:
elpasobuilders.com
RENEWALS |
NEW MEMBERS |
SODA SPONSOR
As the old saying goes, time flies
when you are having fun. I must be
having a blast because it seems like
we just got started for the year. Let
me start with the Golf by the Rio,
presented by WestStar Bank. I have
been a member of this great
association since the late 80s I even
had hair it has been so long ago and
this is the first time I can remember
being sold out over a month in
advance. It just goes to show you
what this association is all about and
that is NETWORKING. This Golf
Pachanga is not about the golf, it is
about everyone getting together and
having a good time with friends and
associates. Our Association works
hard to keep our builders building
and our associates supplying the
product through relationships at the
local and state levels.
For all you serious golfers we are
planning a tournament in the fall. I
cant comment on exactly what and
where it will be but you will need to
bring youre A game and Sun
Country Handicap Card to enter.
More details coming soon.
The other fun thing we do during
the summer is the Bowling outing.
Once again it is not about the
Bowling it is about NETWORKING
with each other. We will have a
announcement on where and when
next month.
I would like to schedule a
associates meeting early in May if
that fits everyones schedule? Come
out and mingle with the other
associate members, make some
contacts, do some business.
A special thanks to all of you who
participated in the Golf by the Rio . It
was windy but we had a great time.
Until next time, have a great month.
14
Builders Outlook 2013 issue 3
Sam Shallenberger
Western Wholesale Supply
Associates Council
I execuTive oFFicerS
edmundo Dena President
Accent Homes
Frank Torres vice President
GMF Custom Homes
edgar montiel Secretary/Treasurer
Palo Verde Homes
Sam Shallenberger Associates chair
Western Wholesale
Frank Arroyos- immediate Past President
Cisco Homes
ray Adauto executive vice President
El Paso Association of Builders
I couNciL/commiTTeecHAirS
Associates council
Sam Shallenberger
Build PAc
Randy Bowling
Desert Green Building council
Javier Ruiz
Land use council
Sal Masoud
Young Designer Award
John Chaney
remodelers council
Rudy Guel
membership retention
Mike Santamaria, Greg Bowling
Finance committee
Edgar Montiel
Womens council
Lorraine Huit
I ADviSorYToTHeBoArD
J. Crawford Kerr, Attorney, Firth, Johnston
& Martinez
I BoArDoFDirecTorS
Juanita Garcia, Icon Custom Builders
Samira Gonzalez, Edwards Homes
Walter Lujan, Dawco Construction
Carlos Villalobos, Pointe Homes
Don Rassette, Rassette Homes
Beverly Clevenger, Automated Division 6 Builders
Frank Spencer, Aztec Contractors
Kathy Parry, Hunt Communities
Sal Masoud, Del Rio Engineering
Robert L. Foster,
Southwest Land Development Services
Leti Navarette, Custom Dream Homes
Linda Troncoso, TR-Engineering
Lance VanDeman, Hub International
John Chaney, Passage Supply
Joe Bernal, El Paso Employee Benefits
Ken Wade, El Paso Building Materials
Ruben Orquiz, MTI Ready Mix
Kathy Carrillo, Pioneer Bank
Henry Tinajero, West Star Bank
Paul Zacour, Zacour & Associates
Chuck Gabriel, Carpets West
Ted Escobedo, Snappy Publishing
Lorraine Huit, Cardel Design
Javier Ruiz, Border Solar & Senercon
2012 Builder member of The Year
Frank Arroyos
Cisco Homes
2012 Pat cox Award
Mike Santamaria
Mountain Vista Homes
2012 Associate of The Year
Sam Shallenberger
Western Wholesale Supply
John Schatzman Award
Hunt Companies
Honorary Life members
Rudy Guel
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.
2013 Builders Outlook
is published and distributed for the
El Paso Association of Builders
by Snappy Publishing
240 Thunderbird Suite C
El Paso Texas 79912 915-820-2800
6046 Surety Dr. El Paso, TX 79905
915-778-5387 Fax: 915-772-3038
Greg Bowling
Kelly Sorenson
Mark Dyer
Mike Santamaria
John Cullers
Randy Bowling
Doug Schwartz
Robert Baeza
Bobby Bowling, IV
Rudy Guel
Anna Gil
Bradley Roe
Bob Bowling, III
E. H. Baeza
Hershel Stringfield
I TABSTATe DirecTorS
Doug Borrett, Karam Co., Life Director
Randy Bowling, Tropicana Homes
I NATioNAL DirecTorS
Bobby Bowling IV.
Demetrio Jimenez
NATioNAL ASSociATioN oF
Home BuiLDerS
(800) 368-5242
TexAS ASSociATioN oF
BuiLDerS
(800)252-3625
www.elpasobuilders.com
www.epbuilders.org
Builders utlook
Hunt is developing family focused neighborhoods
in both east and west El Paso.
Our communities feature amenities such as
neighborhood parks, walking trails, bike paths,
and landscaped roadways.
Only in a community by Hunt will you find home
options for everyone from the first-time buyer
to those searching for their ultimate dream home.
www.huntcompanies.com
DEVELOPING DREAMS.
IN EAST AND WEST
EL PASO.
EAST Horizon Mesa
Eastlake Boulevard to Horizon Mesa Boulevard
Emerald Estates
Eastlake Boulevard to Emerald Park Drive
Emerald Pass
Eastlake Boulevard to Emerald Sands Drive
Mission Ridge
www.liveatmissionridge.com
I-10 and Eastlake Boulevard
WEST Cimarron
www.liveatcimarron.com
Helen of Troy at Redd Road