Builders utlook

www.elpasobuilders.com www.epbuilders.org
2013
issue 1
2013:
U
pward trends in recent
months among a number of
housing indicators point to a
slow and steady growth in the
nations housing market in 2013, but
several challenges remain,
according to the latest economic and
housing forecast by David Crowe,
chief economist for the National
Association of Home Builders
(NAHB).
Consistent, positive reports on
housing starts, permits, prices, new-
home sales and builder confidence
in recent months provide further
confirmation that a gradual but
steady housing recovery is underway
across much of the nation, said
Crowe. However, stubbornly tight
lending standards for home buyers
and builders, inaccurate appraisals
and proposals by policymakers to
tamper with the mortgage interest
deduction could dampen future
housing demand.
Stating there is no consistent
national trend, Crowe noted the
housing recovery is local but
spreading.
We are transitioning from a very
low demand level, where most
people hold themselves out of the
marketplace, to a case where supply
will start being the problem, he said.
As we begin to build more homes to
address that supply, the new home
stock will be a much more important
element of the recovery.
Setting the 2000-2002 period as a
baseline benchmark for normal
housing activity, Crowe said that
owner-occupied remodeling has
returned to previously normal levels.
Multifamily production is also well
on its way, back to 69 percent of
normal, he said. Its the single-
family market that has the farthest to
go, standing at only 40 percent of
what is considered a typical market.
Meanwhile, the number of
improving housing markets across
the nation continues to show
considerable advancement. When
the
NAHB/First American Improving
Markets Index (IMI) was launched in
September of 2011, only 12
metropolitan areas out of 360 were
on the list. As of December 2012, the
list stands at more than 200 metro
areas. The index is based on a six-
month upswing in housing permits,
employment and house prices.
One reason we have seen such a
significant jump in the IMI is because
house prices are beginning to
recover, said Crowe. House prices
bottomed out early in 2011 and since
early 2012 weve seen a 6 percent
increase on a national basis.
Another factor spurring the
recovery is that household
formations are on the rise. In the
early part of the decade, the nation
was generating 1.4 million new
households each year. This
collapsed to 500,000 annually during
the housing downturn and currently
new households are being formed at
close to a 900,000 clip per annum.
Were not up to normal, but this is
adding to demand for housing,
Crowe said.
As new households form at a
growing rate, so too does builder
confidence. The NAHB/Wells Fargo
Housing Market Index, which
measures builder confidence in the
single-family housing market, has
posted gains for eight consecutive
months and now stands at a level of
47. This is very close to the critical
midpoint of 50, where equal numbers
of builders view the market as good
or bad. The HMI has not been above
50 since April of 2006.
Single-family home starts are
projected to climb to 534,000 units
this year, up 23 percent from 2011.
NAHB is forecasting that single-
family new-home production will post
a healthy 21 percent gain in 2013 to
647,000 units. Starts will continue
their upward climb in 2014, posting a
further 29 percent rise to 837,000
units.
Multifamily production is expected
to rise 31 percent in 2012, reaching
the 233,000 level, and posting a
solid 16 percent gain in 2013 to
270,000 units. Multifamily starts are
anticipated to rise an additional 9
percent in 2014 to 294,000 units.
Meanwhile, new single-family
home sales are expected to rise from
307,000 last year to 367,000 this
year, a 20 percent rise. Sales are
anticipated to climb to 447,000 next
year, up 22 percent from 2012 and
jump to 607,000 in 2014, a 36
percent increase over 2013 levels.
Housing remains on growth track, challenges still loom above
Rally Day is the
best way for
members to
familiarize
themselves with
the issues that face
the residential
construction
industry and, more
importantly, deliver
our legislative
agenda straight to
the doorstep of our legislators. This is
also a great way to build relationships
with legislators and network with other
members within the association. Rally
Day is the perfect event for new
members to attend and see firsthand
what TAB does for them and their
businesses as well as how your
government relations team advocates on
behalf of the home building industry at
the Capitol.
As in years past, we will have an
address from an elected official and a
legislative update on the South Steps of
the Capitol. This year, lunch will be on
your own in between your Capitol visits.
We will wrap up the days festivities and
join us for a legislative reception at the
historic Driskill Hotel.
Your support is needed to protect our
entire industry, and TAB asks that you
and your local association make the
commitment to travel to Austin on
Wednesday, February 20 for Rally Day
2013. We look forward to you being a
part of this specialand effective
legislative event.
If you have any questions about Rally
Day 2013, please feel free to contact the
office at (915) 778-5387
Builders
head for
Austin
2
Builders Outlook 2013/1
Since this is my first official article as president I want to let you know how
much I appreciate your support and would like to thank all of those who
attended the installation. It was a really nice event that had a lot class and
some genuine good times. I especially want to thank our sponsors once again
as without them the association couldnt put an event like this on. The
installation committee did a great job as well so my hats off to Lorraine Huit
and her fine group of ladies: Kathy Carrillo, Kathy Rose, Margaret Adauto,
Kathy Parry and my wife Claudia. Thanks for welcoming us like you did.
The business at hand starts this month with our Spring Home Show. My
thanks to those of you who are displaying your products and services at this
show. It looks to be another success from the numbers and of course the
public loves this event. I will be leading our delegation to Las Vegas for the
International Builders Show later this month and I am aware that several of you
will also be attending. Its good to have it close by and in such a fun city.
Now, lets get to why Im writing this article. I want to remind you of that great
US Army ad where they challenge you to be ALL you Can be! I want to do
the same with you, and remind you that your membership needs to be a full
value membership. What I mean is that if you are a member in name only then
you are missing 99% of what your membership can and should be. Why would
anyone look at this opportunity and not take advantage of what it offers?
Simply put its up to you. We have a lot of opportunities for you to take
advantage of; sometimes its simple like coming to meetings. Other times it
takes a little effort, especially when we ask you to invest your business in our
association. This year my challenge to you is to do exactly that, Be All You Can
Be. You will find it rewarding and you will benefit beyond your expectations. It
might be your way to make new contacts, build your business or find a better
way to do business. You will find out ONLY if you accept the challenge. You
benefit and our association benefits. Thats a beautiful combination and one
that we all know is what you want. And its one we need in order to succeed.
See you soon. Happy New Year.
Presidents Message |
El PasoDisposal
772-7495
3
2013/1 Builders Outlook
Edmundo
Dena
President,
El Paso Association
of Builders
Showroom:
2131 Missouri
915 533 6045 fax 533 6096
Thomas R. Brown, Owner
An organization like ours is simply here
because we have members and
supporters that pay for us. Without our
members and support groups we wouldnt
exist. Like any volunteer organization
getting through the last months of a
calendar year are often the most difficult
in terms of income yet nothing changes
when it comes to having to pay to stay
open. Like so many small businesses its
a struggle that no one in management
looks forward to or is fully prepared for.
In retail you hear about black Friday, yet
few understand the real meaning of that
term. To most its the day that sales for
stuff start and its when you go out and
find that super-duper deal on electronics,
clothing, or just about anything else you
can buy. Yet to the retailer all the way
back to the manufacturer black Friday is
the day that signifies finally earning
income, that is, your business is in the
black. So here you have two of retails
strangest events happening depending on
what side of the counter you lie in. Buying
a bargain or staying in business all
dressed up in some dance of death, a
spiral that can spin you to bankruptcy no
matter where you stand. For associations
like ours we have a regular black Friday
every week when we try to figure out
exactly how much we money we have to
operate with and how much we need to
pay out. I can tell you that regardless of
how much planning you do something is
bound to mess with the plan. Executive
Officers across the land recognize this
and like all adrenaline junkies I suppose
we look for the thrill of getting through the
cycle. Most survive but others may not be
as fortunate. Our economy still has some
big obstacles to overcome and it will be
interesting to see what the new Congress
will do to help. We just dont need them to
hurt us anymore.
As I opened the doors on January 2, I
asked myself what it would take to ensure
we are here next January. It isnt
something I do alone as I have an
excellent executive committee that helps
plan and then implement the plan. But it
takes more than just the six of us to bring
the plan to reality and it starts with you as
a member or supporter. First and
foremost we ask that you keep your
membership and that you view it as an
important part of your business plan.
Secondly we ask that you make plans to
advertise or sponsor in an event or
publication. Third is that you do business
with a member so that together we can
see a prosperous 2013. Perhaps if we
use discretion as to where and with whom
we spend our money it could go better for
all of us.
The fact is that during these last few
years we cut back on many items
including personnel. Sometimes those
cuts have been too close to the bone and
lack of staff creates its own problems.
Doing more with less has taken its toll. I
am guilty of that and understand the need
to adjust in order to try a financial
comeback. In the next few months I
expect that you will see a new face or two
coming to visit you representing us. We
began that transformation late last year
when we brought in a third party sales
team to sell our ads in the member
directory. We will continue that
partnership and look for more
opportunities this year. If you have ideas
for us please bring them forward. I need
to hear them and try to figure a way to put
them to use.
We are looking at an ambitious event
schedule and it starts with the Spring
Home Show this January 18-20 at the
Williams Convention Center downtown.
This event brings out people from the area
to visit with and buy services and product.
Why wouldnt you want to be there, right?
Our next event will be a spring tour of
homes, followed by our first golf outing
and then more events to enhance both
your experience and our bottom line.
So hello 2013. Lets all find a way to
make this year as prosperous as we can.
Afterall its about the ability to open that
door again in 2014.
Perspective |
Ray Adauto,
Executive
Vice President
EPAB
4
Builders Outlook 2013/1
New Year brings new challenges
Reserve your advertising space in
the next edition of
Your New Home/Su Casa Nueva
The most complete home buying guide
in both English & Spanish
Unmatched distribution and circulation
Unique dual language layout
Great advertising opportunity
Call Margaret today at 778-5387
5
2013/1 Builders Outlook
6
Builders Outlook 2013/1
The nation's home builders continue to feel
much better about their industry, but the
dramatic gains seen through the summer and
fall appear to be moderating.
An industry index measuring home builder
sentiment in the single-family market rose two
points in December, while November's five-
point monthly gain was revised lower by one
point.
The National Association of Home
Builder's/Wells Fargo Housing Market Index
now stands at 47; 50 is the line between
positive and negative sentiment. The index
stood at 21 in December of 2011.
"Builders across the country are reporting
some of the best sales conditions they've seen
in more than five years, with more serious
buyers coming forward and a shrinking
number of vacant and foreclosed properties
on the market," observed NAHB Chairman
Barry Rutenberg in Tuesday's release.
"However, one thing that is still holding back
potential home sales is the difficulty that many
families are encountering in getting qualified
for a mortgage due to today's overly stringent
lending standards."
Of the index's three components, current
sales rose two points to 51, pushing into
positive territory for the first time since the
housing crash. Sales expectations over the
next six months, while remaining in the
positive, dropped one point, and buyer traffic
rose one point but is still far from positive
territory at 36.
Regionally, home builder sentiment saw its
biggest jump in the Northeast, up 12 points
month-to-month. Sentiment rose two points in
the Midwest, but fell two points in the South
and three points in the West. Only in the
Midwest are the home builders in solid positive
territory.
"We believe that a properly balanced
agreement will breed confidence in the
political system and the U.S. economy, will
enable the housing market to continue its
recovery, and, in turn, will promote broader
economic growth"
Letter to Obama and Boehner Signed by 18
CEOs
December's gains in sentiment are not as
dramatic as the jump in November, as some
builders are likely concerned about the
possibility of going over the so-called "fiscal
cliff." Some builders have already reported
laying off workers and delaying projects,
concerned that much-needed capital for
construction will dry up if a deal cannot be
reached by the end of the year.
Last week the CEO's of 18 home building
companies, who collectively build 30 percent
of the nation's new homes, sent a letter to
President Barack Obama and House Speaker
John Boehner urging them to avoid the fiscal
cliff, even if it means raising taxes on the
builders:
"We support a comprehensive agreement in
Washington to avoid the fiscal cliff that
includes revenue increases (including tax rate
adjustments) together with meaningful
entitlement reforms. We believe that a
properly balanced agreement will breed
confidence in the political system and the U.S.
economy, will enable the housing market to
continue its recovery, and, in turn, will promote
broader economic growth."
The letter was signed by the CEOs of
publicly traded builders including Beazer
Homes, Hovananian Enterprises, KBHome,
Lennar, MDC, and Meritage.
By CNBC's Diana Olick
Builders business on the rebound
The Economy
Builders & Buyers Bypass Budget Bullet
Editors note: Wed like to welcome Economist Elliot
Eisenberg as a regular contributor to the Builders Outlook.
His wealth of experience on housing has been the model for
HBAs across the country over the past decade. Now in
private practice Dr. Eisenberg will bring his talent every
month as a special contributor to the Outlook.
The mortgage interest
deduction (MID) cost the US
Treasury $88.8 billion in
2011, making it the second
largest tax break for
individuals. That is precisely
why the Congress has its
sights set on it. However,
there is much debate about
how to reduce its costs to the
Treasury and by how much.
No matter what happens, reducing the MID
will lower some house prices. That being said,
how the Congress reduces the MID will
determine how much how many houses lose
value. And since so many of us own a home,
sell homes or build homes, the MID will not be
singled out for special treatment. Rather, the
Congress will cap or phase out the value of all
deductions, and in that way avoid favoring one
deduction over another.
While there are several possible
approaches, based on White House and
Senate details of their last-minute deal to avert
the fiscal cliff, the most likely one phases out
itemized deductions for households with
incomes over $300,000. While at first blush
this may appear to be quite damaging, I think
homeowners, realtors, builders, and the entire
housing industry have all dodged a bullet and
should sleep well for quite a while, or at least
until the Congress reopens debate on the tax
code sometime in the future.
Phasing out Schedule A deductions for
couples with incomes over $300,000 limits the
impact to buyers of only the most expensive
houses. For example, with a 10% down-
payment on a $1,500,000 house, mortgage
interest would be $54,000/year, property taxes
would average $16,500, and insurance would
be about $8,000, totaling $78,500 in annual
housing-related expenses. To finance that
mortgage, the $78,500 should ideally not be
more than 30% of gross income, which means
qualifying requires having an annual income of
roughly $260,000; comfortably below the
income level at which deductions start phasing
out.
That being said, how much will a house
valued at $2,000,000 decline? By very little!
In theory it will fall by the one-time lump-sum
amount necessary to compensate buyers for
the new income taxes they will pay due to their
being at or above the phaseout threshold.
With interest rates currently at 4%, this means,
and trust me on this, every $1,000 in added
income taxes reduces the house price by
($1,000/4% or) $25,000. However, in reality,
these impacts will be dramatically mitigated by
tax avoidance strategies available to the very
wealthy including systematically larger down-
payments, cash purchases, corporate
purchases and so on.
In short, few homeowners will be impacted
by the new tax treatment of deductions
including the MID. For households with
incomes below $300,000, there are no
impacts stemming from this change and for
those with higher incomes, the impacts will
largely be mitigated by tax avoidance
behavior. At worst, only homes worth well
over a million dollars will be adversely
affected.
With huge deficits as far as the eye can see,
the tax treatment of deductions is sure to
continue to change and evolve. Enjoy the
debate, but be aware that next time you may
be on the menu.
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
Home Builders,
Utilities Hail
Reconsideration of
EPA Stormwater
Discharge Rule
In a victory for the environment,
affordable housing and the nations
energy infrastructure, the National
Association of Home Builders
(NAHB), Utility Water Act Group
(UWAG) and Wisconsin Builders
Association have settled a
longstanding lawsuit against the
Environmental Protection Agency
after the agency agreed to withdraw
the numeric limit it developed to
control stormwater runoff from
construction sites and to pursue
additional improvements to the 2009
rule.
The lawsuit had noted that the
EPAs numeric limit would have cost
stakeholders up to $10 billion a year
in attempts to comply and that
coming up with a number that would
work across all geographic areas and
soil types would not be possible.
NAHB and UWAG have been
closely involved in EPAs efforts to
develop appropriate controls for
construction and development
industry stormwater discharge for
more than 15 years. For UWAG, the
focus has been on the particular
impacts of EPAs rule on linear gas
and electric utility projects, such as
the construction of new transmission
and distribution lines. For the home
builders, the focus has been on the
challenge associated with meeting a
numeric limit across all construction
sites.
NAHB supports responsible
development and the goals of the
Clean Water Act. We are relieved
that the agency is taking a common-
sense approach to this rulemaking,
and we will continue to work with
state and federal regulators to keep
our waterways clean, said NAHB
Chairman Barry Rutenberg, a home
builder from Gainesville, Fla.
Ray Butts of NextEra Energy, Chair
of UWAGs Policy Committee,
echoed Rutenbergs comments,
adding: We appreciate the agencys
efforts to work with all of us to
address specific problems in the
underlying rule that if unresolved
would have led to significant and
unnecessary cost, engineering and
energy impacts with no appreciable
environmental benefit.
In addition to withdrawing the
numeric limits, EPA has agreed to
clarify the non-numeric portion of the
rule so that land developers, permit
writers and inspectors better
understand what measures are
required to help protect the nations
waterways.
In December 2009, under court
order, the agency finalized Effluent
Limitation Guidelines (ELGs) for the
construction and development
industry to establish the minimum
technology required to control the
impact of stormwater runoff. EPA
established both numeric limits and
best management practices, such as
silt fences, for certain active
construction sites.
NAHB, UWAG and the Wisconsin
builders challenged the rule shortly
after it was issued. Pursuant to the
parties settlement agreement, EPA
has agreed to sign a notice of
proposed rulemaking to amend its
2009 rule by April 15 and agreed to
take final action on the proposed rule
by Feb. 28, 2014.
NAHB will continue to educate its
members about the importance of
regulatory compliance as they build
new homes, Rutenberg said. At the
same time, we will remain vigilant
about the costs of compliance and
help ensure that the money is well
spent because the cost is reflected
in the price of a new home.
Butts noted that this is just one of
several significant EPA proceedings
affecting the electric power industry.
We remain hopeful that the parties
common-sense solution here will be
a bellwether of things to come in the
agencys other rulemakings.
This settlement is a win for the
environment and for the recovering
economy, said Wisconsin Builders
Association Executive Vice President
Jerry Deschane. The proposed
numeric limits were a one-size-fits-
nowhere approach that would have
cost a fortune to implement and
would not have improved water
quality. Common-sense best
management practices and
understandable regulations are the
best path to achieving the goals of
the Clean Water Act and maintaining
housing affordability.
7
2013/1 Builders Outlook
NAHB
Jaimes
Courier
Service,Inc.
Jaimes
Courier
Service,Inc.
915-549-4533
or
915-478-2404
Bonded, insured for
your peace of mind.
Builders utlook on the scene |
In 2012, the El Paso Association of Builders commemorated our
65th anniversay. The year was jam packed with events and celebra-
tions. Here, we pay a final tribute to another historical year at EPAB.
The year that was 2012
2013/1
List of Improving
Housing Markets
Expands to 242 in
January
In the latest sign of a burgeoning
recovery in U.S. housing markets, the
number of metropolitan areas on the
National Association of Home
Builders/First American Improving
Markets Index (IMI) rose for a fifth
consecutive month to 242 in January.
This is up from 201 markets listed as
improving in December, and includes
entrants from 48 states and the District
of Columbia.
The IMI identifies metro areas that
have shown improvement from their
respective troughs in housing permits,
employment and house prices for at
least six consecutive months. A total of
47 new metros were added to the list
and six were dropped from it this month.
Newly added metros include such
geographically diverse locations as Los
Angeles, Calif.; Auburn, Ala.; Des
Moines, Iowa; Nashville, Tenn.;
Richmond, Va.; and Cleveland, Ohio.
We created the improving markets
list in September of 2011 to spotlight
individual metros where -- contrary to
the national headlines -- housing
markets were on the mend, noted
NAHB Chairman Barry Rutenberg, a
home builder from Gainesville, Fla.
Today, 242 out of 361 metros
nationwide appear on that list, including
representatives from almost every state
in the country. The story is no longer
about exceptions to the rule, but about
the growing breadth of the housing
recovery even as overly strict mortgage
requirements hold back the pace of
improvement.
The IMI has almost doubled in the
past two months as stronger demand
during prime home buying season
boosted prices across a broader number
of metropolitan areas, noted NAHB
Chief Economist David Crowe. Similar
home price gains, and hence the IMI,
may be tempered in the future as we
see data from typically slower months
for home sales.
Potential home buyers should be
encouraged by the positive momentum
in home prices, permitting and
employment that is increasingly evident
in not just isolated housing markets, but
a broadening swath of the country,
added Kurt Pfotenhauer, vice chairman
of First American Title Insurance
Company.
The IMI is designed to track housing
markets throughout the country that are
showing signs of improving economic
health. The index measures three sets
of independent monthly data to get a
mark on the top improving Metropolitan
Statistical Areas. The three indicators
that are analyzed are employment
growth from the Bureau of Labor
Statistics, housing price appreciation
from Freddie Mac and single-family
housing permit growth from the U.S.
Census Bureau. NAHB uses the latest
available data from these sources to
generate a list of improving markets. A
metropolitan area must see
improvement in all three measures for at
least six consecutive months following
those measures respective troughs
before being included on the improving
markets list.
A complete list of all 242 metropolitan
areas currently on the IMI, and separate
breakouts of metros newly added to or
dropped from the list in January, is
available at www.nahb.org/imi. A state-
by-state listing of metro areas on the list
is also available at:
www.nahb.org/improvingmarkets.
10
Builders Outlook 2013/1
11
2013/1 Builders Outlook
Give your customers
the option of the sun
Now more than ever,
El Paso home buyers
are planning for the
future.
Border Solar can help
you oer your
customers solar power
as a sensible
alternatve.
The future starts
today.
Crossing to Clean Energy
www.bordersolar.com
7365 Remcon Circle
El Paso, TX 79912
(915) 6134168
follow us on twiter and
facebook:
BorderSolar
NAHB
Housing
Starts Slip,
Permits Rise
In November
Following an above-trend rate of
production in October, nationwide
housing starts slipped 3.0 percent to
a seasonally adjusted annual rate of
861,000 units in November,
according to newly released data
from HUD and the U.S. Census
Bureau. Meanwhile, permits for new
construction rose to their strongest
level in more than four years, with a
3.6 percent gain to 899,000 units.
Many builders have reported
improving conditions in their local
housing markets and are increasingly
optimistic about the spring buying
season, but they are being very
careful not to get ahead of demand,
observed Barry Rutenberg, chairman
of the National Association of Home
Builders (NAHB) and a home builder
from Gainesville, Fla. Meanwhile,
tight credit conditions are still the
chief obstacle to a quicker recovery.
The starts report for November
reflects a readjustment to a more
sustainable level of production
following significant gains in the
previous two months, said NAHB
Chief Economist David Crowe. That
said, starts in this quarter are still
running well ahead of the third
quarter, and we are on track for a
projected 25 percent improvement in
housing production for all of 2012.
Moreover, the fact that issuance of
building permits hit its fastest rate
since July of 2008 in November is
indicative of the continued, modest
growth that we expect to see in new-
home construction through 2013.
Single-family housing starts
declined 4.1 percent to a seasonally
adjusted annual rate of 565,000 units
in November, while multifamily starts
edged down 1.0 percent, to 296,000
units.
Regionally, combined single- and
multifamily starts activity was mixed
in November. While the Midwest and
South posted respective gains of 3.3
percent and 2.9 percent, the
Northeast and West posted
respective declines of 5.2 percent
and 19.2 percent.
Permit issuance, which can be an
indicator of future building activity,
rose 3.6 percent to a seasonally
adjusted, annual rate of 899,000
units in November. This was due to a
10.6 percent gain to 334,000 units on
the multifamily side, as single-family
permits held virtually unchanged for
the month, at 565,000 units.
Permits rose in all but one region
in November. Gains of 8.1 percent,
2.9 percent and 5.9 percent were
registered in the Midwest, South and
West, respectively, while a 6.2
percent decline was registered in the
Northeast.
ted escobedo
9158202800
ted@snappypublishing.com
12
Builders Outlook 2013/1
Expert Advice
As part of the fiscal cliff rescue
legislation Congress renewed the
Builder Tax Credit in Section 408 of
the American Taxpayer Relief Act on
Dec 31. The tax credit, which
expired back in 2011, has been
retroactively restored and extended
until Dec. 31, 2013. Back to reality,
now that everyone had time to rest,
well... if you can say that about the
holidays.
Nevertheless its always nice to go
thru this season with family and
friends. But its also nice to plan for
the New Year, new projects, new
goals, and objectives, new
challenges to overcome. As always,
I will be writing about energy, and
the extension of the Energy
Efficiency Tax Credit. It expired back
in December 2011 but now provides
a $2,000 Tax Credit for builders that
meet a threshold of 50% reduction
of Heating and Cooling load on new
homes.
The main intent is to encourage
builders to use more energy efficient
practices while building their new
homes. With this Federal Incentive
everybody wins; the builder receives
an incentive which offsets the extra
cost of building energy efficient
homes; the home buyers get a more
comfortable energy efficient home;
suppliers are able to sell a few extra
products or energy efficient
upgrades from their standard
offering; and regardless of your
interest on Climate Change a more
energy efficient home also does its
part to reduce its carbon footprint
thru energy efficiency.
How to qualify for the Tax Credit?
Its very straight forward: if you are
already doing Energy Star Version 3
or ECO Home you are a step closer
to qualify for the Tax Credit. This
doesnt mean that just by being
Energy Star rated you already
qualify, no, this is just a good start.
In reality they are a little bit different,
but they go thru the similar process
by using the HERS qualification
process and testing, with a focus of
reducing the Heating and Cooling
load of the entire homes by following
certain parameters that I can assist
you achieve. I have to say the Tax
Credit is not something hard to
achieve, but energy efficiency
upgrades need to be implemented
with a goal of doing it thru the most
cost effective strategy.
In summary if you build a home
thats 50% more energy efficient on
heating and cooling you can get
$2000 back in your pocket; if you
build a manufactured home thats
30% more energy efficient, you get
$1000. You dont have to be a
licensed builder to earn it; the tax
credit (which is as good as cash,
versus a deduction) goes to anyone
with a financial interest in the
building of the home. It could be
anyone who builds and then sells or
leases the residence, whether thats
a homeowner, a design/build firm, or
a production builder. The one
change is the baseline for the
measurement of energy efficiency- it
used to be the 2003 International
Energy Conservation Code (IECC)
but now has been changed to the
2006 IECC. Since the worst home
you can legally build (according to
code) is better than the 2006 IECC,
you should definitely look into
qualifying to meet the Tax Credit
parameters. If you would like to
learn more about how to qualify your
homes, please contact us at
jruiz@senercon.com or call me at
915-613-4168
Energy Efficiency Tax Credits are BACK
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
o
m
e
o
re
a
m
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
2-10 Home Buyers Warranty
Border Solar
C & L Plumbing Supply
Cj Homes LLC.
Classic American Homes
CqC Testing And Engineering, LLC
El Paso Truss
El Paso Winnelson
First National Bank
GmF Custom Homes, LP
Home Builders Insurance Services
Interceramic Tile & Stone Gallery
jan-Car Inc.
Kings Aire
massey johnson Associates
Painted Dunes Desert Golf Course
Passage Supply
Patriot mortgage
Pella Windows
Performance Glass & Aluminum
Punto Living LLC
R.E. Welch Contractor
Rebath of El Paso/Las Cruces
Sarabias Blue Sanitation
Senercon
Teachers Federal Credit Union
Vision Consultants
Vista Serena Homes, LLC
W. Bennett johnson
Western Wholesale
Winton/ Flair Homes
Membership News
Thanks to our
JANUARY
SODA SPONSOR:
Edwards Homes
SODA SPONSOR
11395 James Watt, Suite A-11 79936
915-633-8002
13
2013/1 Builders Outlook
www.elpasobuilders.com
www.epbuilders.org
UPCOMING EVENTS |
RENEWALS |
JANUARY 18-20
SPRING HOME SHOW
CIVIC CENTER
JANUARY 18-23
NAHB MEETINGS
LAS VEGAS, NEVADA
JANUARY 22-24
INTERNATIONAL BUILDERS
SHOW
LAS VEGAS, NEVADA
FEBRUARY 14
11:00 BOARD MEETING
12:00 GENERAL MEETING
EL PASO CLUB
CHASE BANK BLDG.
(DOWNTOWN)
FEBRUARY 19-20
RALLY DAY
AUSTIN, TX
FEBRUARY 21-23
TAB MEETINGS
AUSTIN, TX
For the latest updates &
event information, visit:
elpasobuilders.com
Its 2013 and it seems like last year
flew by. I know that when it came to
the work we do at the association the
year was at times difficult and
challenging but never boring. I would
like to think that 2013 will be a year of
transformation and of recommitment
from all of you. I cant begin to stress
how important it will be for each one
of you to be committed to the goals
and financial health of the association
as we begin our 66th year in El Paso.
While tradition plays into my request I
want to issue a challenge to the
newer and younger members of our
association. I challenge each of you
to make 2013 better than last year
and work to make 2014 better than
2013. This is after all an association
that has its roots in toughness, with
sensitivity to a majority whose voice
is often not heard. It will require work
and commitment on your part and it
starts with attending meetings,
getting involved in events, and getting
an ad in the Outlook. Since you have
a copy in your hands or on your
screen look at who advertises and
ask yourself why are they doing this.
As a board member Im looking at
the financials for this organization on
a very regular basis. It is afterall a
business that struggles like any other,
and in some cases can do little about
that struggle. As Associate members
we are holding a key to unlock the
potential for this place right in our
hands. Its called advertising and
marketing. Your business like mine
has a line item for advertising and
many times I rely on my suppliers and
vendors to help me with that
advertising. What I have learned from
Ray is that I need to look at
advertising in the association
publications for several reasons: it is
targeted to readers who are both
individual and bulk buyers; it is micro
targeted rather than shotgun
advertising, hoping to hit something
by mere chance; it is a good buy
when you consider you get full color
ads in print and on line; it benefits the
association by making money for the
association. Fact is that without
advertising revenue from less than 30
members this association couldve
folded over the last few years. I
never looked at our advertising in
such a way but have come to realize
how important it is for the EPAB and
how much you can benefit by placing
an ad.
Over the next few months you may
see new faces approaching you to
buy advertising in the Outlook, the
directory, Build Book, or Su Casa
Nueva. Dont get confused on the
last one as we have been told a
publication with no affiliation to the
EPAB has begun marketing in El
Paso. They do not belong to or
provide income to the association. If
you have any questions call the
EPAB office to ask. And while you
look at what you should do think
about advertising right here right now.
14
Builders Outlook 2013/1
Sam Shallenberger
Western Wholesale Supply
Associates Council
Builders utlook on the scene |
January BOD
Meeting & Training
The first meeting of the 2013 Board
of Directors was held on January 10
at the association conference and
learning center. New board members
were introduced and some who
couldnt attend the installation were
installed by the executive committee.
The board reviewed financials and
also approved the 2013 budget.
Following the meeting the board took
part in an orientation designed to help
board directors better understand their
position in the association, what to
expect, and what responsibilities they
have been entrusted with.
The next board/general meeting will
take place on Valentines day,
February 14 at the El Paso Club. Call
the association for information.
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