Builders utlook

www.elpasobuilders.com www.epbuilders.org
2013
issue 9
The smell of paint and the busy
workers setting up will be the scene
the week of October 11 as the return
of a Fall Home and Garden Show
takes center stage at the Judson F.
Williams Convention Center.
Produced by Show Technology of
San Antonio, this years El Paso
show will feature 100 exhibitors and
showcase some of El Pasos
premier businesses. The three day
show is designed to offer consumers
an opportunity to spruce up their
homes for the holidays and beyond.
Were so glad to be coming to El
Paso especially right before
Thanksgiving and Christmas, said
Tommy Mantini of Show Technology.
Our years of producing home and
garden shows will be apparent to
both the consumer as well as the
vendors exhibiting at the show, he
continued. Show Technology
purchased the previous rights from
another producer who had the dates
locked up. We wanted to ensure
that if we came into El Paso that we
would be in good shape in the spring
and fall, so we bought out the show
and secured the dates we needed,
Mantini said.
Ray Adauto, Executive Vice
President of the El Paso Association
of Builders said that the association
was approached by the producers
with the idea of sponsoring the
Home and Garden Show. We have
been involved in Home shows for
decades and have been associated
with some great and not so great
producers. In this case we are
excited and pleased that the Mantini
family has taken over the local
show, Adauto said. Our fellow
associations across Texas have
been working with Show Technology
for years and now we are as well.
The idea to showcase your
business is nothing new to some of
our members, like Tropicana
Homes. We have been successful
in previous shows because we treat
the show as an opportunity, said
Greg Bowling. We basically add a
model home into show and welcome
consumers to it, he continued.
Tropicana has a great track record in
getting customers out of visitors who
never expected to be able to buy a
home at the show. When they
come in they might be looking to fix
up their place, but we can show
them how buying new makes
sense, Bowling said.
This show will show feature HVAC,
solar, and building material vendors.
One feature that visitors will like is
the Gardening experts from local
universities extension services. In
addition TV sensation Ahmed
Hassan from DIY Network fame will
be conducting seminars and
answering questions from the
visitors. Ahmed was here two years
ago and he was sensational, said
EPABs Adauto. Not only is he the
favorite of many hes also really
knowledgeable when it comes to
turning your yard into your dream
showcase, Adauto continued.
The show will open Friday October
11 at 2 p.m. and go until 7, followed
by Saturday 10-7 and Sunday hours
11-5. To reserve a booth or space
call Show Technology Productions at
-1-866-663-6186. Log in to
www.elpasohomeandgarden.com
for more information.
Accent Homes teams up
to present home at Fall
Home and Garden Show
Edmundo Dena, President of
Accent Homes and President of the
El Paso Association of Builders
announced that Accent has agreed
to construct a show home inside the
Judson F. Williams Convention
Center for the Fall Home and
Garden Show. This will be Accent
Homes first venture into this type of
display but Dena said he is looking
forward to it.
I think that Accent has such an
awesome product line that we
couldnt find a reason not to do this,
Dena said to the Outlook. We are
pleased to be working with Show
Technology Productions to make
sure our display home is something
show goers will appreciate, he
continued. We try to display local
builder talent at our events like this
and we are extremely excited that
Accent Homes has undertaken this
endeavor, said Tommy Mantini of
Show Technology. We have great
builders do this around the country
and adding Accent Homes to our
stable of talent will make this show
something special, he continued.
Dena said that he is working with
his suppliers and vendors to show
off their products and what it would
look like inside an Accent Home.
The display will feature several
rooms (or vignettes) that you would
find in a real home. Our vendors
and suppliers will help us put the
latest and greatest inside our show
home and visitors will be told where
to find those, Dena continued.
Western Wholesale Supply will be
a part of the Accent Home display.
When we were asked by Accent
Homes to participate we jumped at
the opportunity, said Sam
Shallenberger. We supply the real
thing to Accent Homes and so
moving into the convention center is
something we look forward to
doing, he continued.
You can check out the show home
October 11-13 at the Fall Home and
Garden Show.
EPAB to host
Fall Home &
Garden Show
Friday, October 11, 2:00 p.m. - 7:00 p.m.
Saturday, October 12, 10:00 a.m.-7:00 p.m.
Sunday, October 13, 11:00 a.m. - 5:00 p.m.
To reserve a booth or space call Show Technology
Productions at -1-866-663-6186. Log in to
www.elpasohomeandgarden.com for more
information.
2
Builders Outlook 2013 issue 9
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Presidents Message |
El PasoDisposal
772-7495
3
2013 issue 9 Builders Outlook
Edmundo
Dena
President,
El Paso Association
of Builders
Showroom:
2131 Missouri
915 533 6045 fax 533 6096
Thomas R. Brown, Owner
The kids are back in school. Homework for them, homework of
another kind for me. As the month started we were busy at Accent
Homes, and hopefully you have been also. Its not that I mind being
busy because I can remember (as you can also) the days when we
were wondering if wed sell a home or not. So Im not complaining but
I am telling you that in todays business world theres so much more to
business than what I ever imagined. We are starting to see some of the
effects the new health care act already and were seeing some of the
effects from an economy not ready to really get going. While we work
our way through those two things weve had new increases in permit
fees and new regulations. So once again I wonder how well cope and
then find out well do just fine. I think that many of you successfully
maneuver the world of business just like me, optimistically.
September is relatively quiet but the coming months will feature some
of our big events again, including the Fall Home and Garden show in
October, a Halloween themed bowling tournament on October 29 and
then its on to November and all that it brings. So Ill get back to working
for a living and helping at the Association. Ill also encourage you to
consider your opportunity to serve the EPAB by getting involved in the
Board and in all the events we have planned. Until then, go out and sell
something.
Sometimes you cant tell the
seasons without looking at ESPN.
Other times all you have to do is look
at government. Tis the season for
things to happen, good and bad. First
the issues with how we are going to
pay the increases of property taxes
are just being realized. It will take a
few more months before the reality
sets in as property owners finally open
the tax bill and decide that they
shouldve paid better attention.
Higher taxes means less home sales,
less sales means less work for
builders and associates alike. It is the
proverbial struggle of being able to
afford what you want to buy or better
yet buying a little above your means
but still buying. Not today it seems.
Interests rates have gone up and
while theyre still at or near historic
lows. The national media and the
NAHB say that home building is up
and thats true since it was so far down
the tubes a while ago that any
movement in a positive direction is,
well, positive. The caveat is that the
economy is still fragile and with
Congress not able to come to terms
on the debt limit and health reform,
food stamps or other entitlements
the mood of the buyers market may
be wait and see. What we have to
fear is that the government doesnt get
funded. I dont want to see the military
get IOUs while the Congress gets
paid like usual. That spells trouble
even in a Republic like ours.
Locally at some point the
governments are going to have to quit
spending on anything outside of the
basic role of government: provide for
the safety and welfare of the citizens.
I have long railed against wasteful
spending by the bureaucrats and
politicians. Last month I told you the
story of the move to put expensive
roundabouts on Van Buren and
Monroe streets, and the
overzealousness of city staff to do it
despite my objections to the costs. I
have yet to hear from the District 2
office or anyone else within the city but
Im sure the editorial was read by
some of them. I am hopeful that the
plans to put the crop circles there are
scrubbed. I also hope the paving is
done that is sorely needed there as
well as in many other parts of the city.
I also think that using the money to
chop the weeds from the streets and
rights of way would show the city is
taking care of its properties just like
they are forcing private citizens to do
via citations or warnings. It is
important that the politicians who ran
on the mantra of being more business
friendly actually show that they are
willing to clean their house before
making others do it, or at least lead
the way. A show like this would go a
long way in turning a campaign slogan
into an action.
Finally, speaking of the rains we just
experienced Id like to think we would
be better prepared for it with so much
money spent on upgrades and work to
create a new stormwater utility. To be
fair some of it was better, but on the
whole we didnt get the same amount
of rain we did in 2006, not even a 10th
of that deluge. So why, we ask, did I-
10 flood and stop interstate traffic?
Lack of pumps? No way to get the
water out? Interestingly the
stormwater utility brought in two giant
pumps and dumped the water onto the
roads next to the new ponding sites.
So the new went into the old. I ask
this: why hasnt the interstate been
raised so that lanes are above the
water level. By now the work would
have been done and there would be
no flooding. Just a thought to end my
column. Makes you think, doesnt it.
Perspective
Ray Adauto,
Executive
Vice President
EPAB
4
Builders Outlook 2013 issue 9
Questioning the role of government
5
2013 issue 9 Builders Outlook
Builder Confidence
Unchanged in September
From NAHB
Following four consecutive months of
improvement, builder confidence in the market
for newly built, single-family homes held
unchanged in September with a reading of 58
on the National Association of Home
Builders/Wells Fargo Housing Market Index
(HMI), released today.
While builder confidence is holding at the
highest level in nearly eight years, many are
reporting some hesitancy on the part of buyers
due to the sharp increase in interest rates,
said NAHB Chairman Rick Judson, a home
builder from Charlotte, N.C. Home buyers are
adjusting to the fact that, while mortgage rates
are still quite favorable on a historic basis, the
record lows are probably a thing of the past.
Following a solid run up in builder
confidence over the past year, we are seeing a
pause in the momentum as consumers wait to
see where interest rates settle and as the
headwinds of tight credit, shrinking supplies of
lots for development and increasing labor
costs continue, noted NAHB Chief Economist
David Crowe.
Derived from a monthly survey that NAHB
has been conducting for 25 years, the
NAHB/Wells Fargo Housing Market Index
gauges builder perceptions of current single-
family home sales and sales expectations in
the next six months as good, fair or poor.
The survey also asks builders to rate traffic of
prospective buyers as high to very high,
average, or low to very low. Scores from
each component are then used to calculate a
seasonally adjusted index where any number
over 50 indicates that more builders view
conditions as good than poor.
HMI component indexes were mixed in
September. While the component gauging
current sales conditions held unchanged at 62,
the component gauging sales expectations in
the next six months declined three points to 65
and the component gauging traffic of
prospective buyers increased one point, to 47.
All four regions posted gains in their three-
month moving average HMI scores in
September, including a two-point gain to 41 in
the Northeast, a four-point gain to 64 in the
Midwest, a two-point gain to 56 in the South
and a four-point gain to 61 in the West,
respectively.
Single-Family Production
Pushes Housing Starts Up
From NAHB
Led by a solid increase in single-family
starts, nationwide housing production rose 0.9
percent to a seasonally adjusted annual rate of
891,000 units in August, according to figures
released today by the U.S. Department of
Housing and Urban Development and the U.S.
Census Bureau. Meanwhile, construction of
multifamily buildings slowed following a
rebound in the previous month.
Overall, this is an encouraging report as
builders are seeing pent-up demand begin to
be released for single-family homes despite
headwinds such as rising mortgage rates and
tight credit conditions, said Rick Judson,
chairman of the National Association of Home
Builders (NAHB) and a home builder from
Charlotte, N.C.
This is the kind of signal weve been
looking for, with single-family starts and
permits up or holding steady across every
region in the nation, said NAHB Chief
Economist David Crowe. Todays report is
reflective of gradual improvement in buyer
confidence in the overall market and our
recent surveys that indicate a solid outlook for
single-family production. On the multifamily
side, we are catching up with underlying rental
demand. We expect to see additional
multifamily starts in the future, but not as rapid
a pace of growth as weve seen in the past.
Single-family housing starts rose 7 percent
to a 628,000 unit pace. Regionally, single-
family starts activity rose 9.6 percent in the
Northeast, 7.1 percent in the Midwest, 2.3
percent in the South and 17.5 percent in the
West.
The annualized rate of multifamily
production fell 11.1 percent to a seasonally
adjusted annual rate of 263,000 units.
Overall building permits, which are an
indicator of future building activity, declined 3.8
percent to 918,000 units in August. This was
due entirely to a pullback in the multifamily
sector, where permits fell 15.7 percent to
291,000 units. Single-family permits posted a
3 percent gain to 627,000 units the best pace
since May of 2008.
Regionally, single-family permit issuance
increased 2.9 percent in the Midwest, 2.5
percent in the South, 5.3 percent in the West
and held steady in the Northeast.
Record High 291 Housing
Markets Listed As Improving
From NAHB
A total of 291 metropolitan areas across the
country now qualify as improving housing
markets, according to the National Association
of Home Builders/First American Improving
Markets Index (IMI) for September, released
today. This reflects a gain of 44 markets from
August and marks the indexs highest level
since it was initiated two years ago.
The IMI identifies metropolitan areas that
have shown improvement from their
respective troughs in housing permits,
employment and house prices for at least six
consecutive months. In September, 242
housing markets retained their existing
positions on the IMI while 49 new markets
were added and five were dropped from the
list. Recent additions include such
geographically diverse locations as Macon,
Ga.; St. Cloud, Minn.; Brownsville, Texas;
Spokane, Wash.; and Milwaukee, Wis.
Just over 80 percent of the 361 metros
tracked by our index are showing consistent
growth in three key measures of housing
market strength prices, permits and
employment, explained NAHB Chairman Rick
Judson, a home builder from Charlotte, N.C.
While there is still plenty of room for growth,
this is an excellent indication of how the
housing recovery has begun to take hold
across more geographic areas.
The dramatic increase in markets qualifying
for the IMI in September was partly due to a
recent improvement in the way that Freddie
Mac measures home prices, which resulted in
stronger gains than previously reported,
noted NAHB Chief Economist David Crowe.
Even so, the broadened list of metros on the
IMI continues to demonstrate the slow but
steady gains that individual housing markets
are making to bolster the national outlook.
With every state now able to claim at least
one county thats part of an improving metro,
and 23 states having charted at least one new
entry in September alone, prospective home
buyers have good reason to be encouraged by
this news, said Kurt Pfotenhauer, vice
chairman of First American Title Insurance Co.
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
Metropolitan Statistical Areas. The three
indicators that are analyzed are employment
growth from the Bureau of Labor Statistics,
house price appreciation from Freddie Mac
and single-family housing permit growth from
the U.S. Census Bureau. NAHB uses the
latest available data from these sources to
generate a list of improving markets. A metro
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 291 metros currently on
the IMI, and separate breakouts of metros
newly added to or dropped from the list in
September, is available at www.nahb.org/imi.
Industry News
6
Builders Outlook 2013 issue 9
7
2013 ISSUE 9 Builders Outlook
Builders utlook on the scene |
The 2014 Young Designer
contest has started with the new
school year and while its just
gotten under way the students are
anxious to get going. Association
Secretary Treasurer Edgar Montiel
of Palo Verde Homes hosted the
high school seniors to learn about
construction from the ground up.
Students are enrolled in the El
Paso Independent School District
Center for Career and Technology
Education (CCTE) taught by
Cecilia Orozco. John Chaney from
Passage Supply is the chairman of
the YD events.
The students represent several
high schools in the district including
Jefferson, Bowie, Andress, Austin,
Irvin, El Paso, Franklin and
Coronado. Students attend their
respective home high schools and
then head out to the CCTE campus
at the old El Paso Tech. We have
a lot of kids that have done very
well with our program and were
grateful for all the help the Builders
Association has provided, said Ms.
Orozco. For our part getting the
students out to an actual worksite
is important, and having Edgar
Montiel host them is really cool,
said John Chaney.
Montiel gave the students a lot of
information that they quickly
devoured and took plenty of notes
on. It is really good to see that
these students want to get into the
construction business, as
draftsmen, architects, builders, or
in specialty sub-contracting
businesses, Montiel told the
Outlook. We know that the
demand for qualified professionals
in our industry is important, so
working with the students and the
district is vital to continue our
growth, he continued.
While touring the worksite at
Cimarron the students were also
greeted by EPAB President
Edmundo Dena. Watching the
note taking and the interest in what
is going on inside and outside the
homes showed me that these
students really want to learn, Dena
said.
The annual Young Designer
Scholarship Contest utilizes a
problem solving methodology
whereby the student is given a
situational problem, asked to
design to it, and complete a set of
plans and an elevation showing the
results of the problem solving.
We have seen so many different
approaches to the same problem
over the years that frankly we look
forward to seeing the plans and
models these students create,
said Ray Adauto.
Our special thanks go out to Ceci
Orozco, John Chaney, Edgar
Montiel, Edmundo Dena, Ray
Adauto, Palo Verde Homes,
Edwards Homes, and Accent
Homes for this special trip. Another
outing is planned for the juniors
participating in the CCTE.
of Texas
TM
+
Young Designers visit construction site
The lobby of the
CONRAC structure
will be three levels
high. (Rendering
courtesy City of El
Paso)
el paso development news
Northeast El Paso to get more retail options
North Hills Crossing May Bring New Stores
The North
Hills Crossing
shopping cen-
ter may bring
several new
retailers to
Northeast El
Paso. Tenants
are oftentimes
used for illus-
trative purpos-
es by develop-
ers and subject
to change.
Site plan showing a restaurant row at the corner of Edgmere Boulevard and
Joe Battle. (Image: www.rjlrealestate.com)
Residents of Northeast El Paso
may have several more retailers
and restaurants to choose from in
the coming years as the North Hills
Crossing shopping center takes
shape. The 28 acre center will be
located at the corner of Martin
Luther King Jr. Boulevard and US-
54.
The 200,000+ square foot power
center has two site plans at the
website of RJL Real Estate consult-
ants (www.rjlrealestate.com), one
that is part of the website and
another shown on the marketing
brochure. Each site plan differs but
shows a mix of big box and medium
sized retailers as well as restaurant
options.
Both plans include retailers such
as Ross, Marshalls, Michaels,
Rack Room Shoes, Office Depot,
and restaurant Taco Cabana.
Restaurants and smaller retail
shops will be located on out-
parcels along the frontage road
and Martin Luther King Jr.
Boulevard.
The brochures site plan shows a
Walmart Market grocery store as
well as smaller PetSmart, Dollar
Tree, and Annas Linens locations in
the big box area. The outparcels
include Panda Express,
Whataburger, Chick-Fil-A, Five
Guys Burgers & Fries, Verizon, and
Dunkin Donuts locations.
The site plan according to the
website is somewhat different show-
ing retailers and restaurants such
as JCPenney, Taco Cabana, Peter
Piper Pizza, AutoZone, and Chase
Bank. There are also spots for a
future grocery store, pet store, sit
down restaurant, and drive-thru
restaurant.
North Hills Crossing, located to
the south of Bungalows at North
Hills apartment complex, is being
developed by Southwest Land
Development Services, according to
the marketing brochure. No con-
struction or opening dates are avail-
able for the project, and retailers
included in the site plans may also
be tentative.
Restaurants Expand
Further East in El Paso
A 16 acre shopping center in far east El Paso is cre-
ating a restaurant row of sorts at the northeast corner
of Joe Battle Boulevard and Edgemere Boulevard.
Three restaurants will join McDonalds and Taco Tote
locations already at the site.
Applebees, Village Inn, and Starbucks Coffee will all
have a presence at the shopping center, according to
a marketing brochure at the website of RJL Real
Estate Consultants (www.rjlrealestate.com). The
brochure highlights other available spaces at the cen-
ter, including a restaurant space and a bank building.
The newest restaurants will line Joe Battle
Boulevard in the typical strip center fashion that El
Pasoans are accustomed to experiencing. The 16.9
acre center is across Edgemere Boulevard from the
Sierra Providence East Medical Center complex which
is also undergoing expansion.
As usual, potential tenants in developing shopping
centers are subject to change, and this may not be the
finalized list of restaurants to be located at the site.
The Consolidated Rental
Car Facility at the El Paso
airport will have a three
level parking structure. A
covered pathway will take
travelers to and from the
baggage claim area.
(Rendering courtesy of
City of El Paso)
Builders Outlook Issue 9.2013
Content provided by
El Paso Development News
visit: elpasodevnews.com
City Debuts Renderings of Airport Rental Structure
New renderings provided by the
City show what the future rental
garage will look like at the El Paso
International Airport. The structure,
officially called the El Paso
Consolidated Rental Car Facility, or
CONRAC for short, will also include
a City-commissioned piece of public
art that will hang in the lobby.
The CONRAC structure will be a
three level parking structure at the
airport which will be used by rental
car companies for pick up and return
of automobiles used by travelers. It
will include 650-700 parking stalls
and was designed using smart
growth principles, including a focus
on pedestrian accessibility.
Included in the structure will be
Ready and Return areas, customer
kiosks, fueling and car wash areas, a
light maintenance facility, and vehicle
storage for use by the rental compa-
nies. The architectural design is by
Demattei Wong Architecture, Inc. of
California under a contract approved
by the City last October.
Inside the three-level tall lobby of
the CONRAC will hang a public art
piece that will float above travelers
heads. A three-dimensional
Mandala will incorporate iconogra-
phy from El Pasos mix of cultures
using multiple colors to suggest a
sunset, according to the website for
the co-designer, MetaLab Studio of
Houston (metalabstudio.com).
MetaLab designed the piece in col-
laboration with RE:site Studio.
Construction should begin within a
year on the $45 million CONRAC
project, according to the Department
of Aviations Capital Improvement
Plan revealed last month. The struc-
ture will be located immediately to
the west of the baggage claim area
of the airport terminal.
A new roundabout at the University
of Texas at El Paso (UTEP) opened
to traffic in time for the first day of
classes last Monday. The round-
about is part of the larger Schuster
extension project that will take the
avenue over Interstate 10 and con-
nect to West Paisano Drive.
According to the schools On the
Move website
(www.onthemove.utep.edu), a por-
tion of the P-4 parking lot has been
restriped and opened for use.
Pedestrians can also now walk
underneath the completed round-
about to access the campus.
The new road is officially titled
Spur 1966 in reference to the nation-
al champion Texas Western basket-
ball team, the college that would be
renamed UTEP years later. It is still
the only university in the state of
Texas to win a national champi-
onship in basketball.
A 0.7 mile bridge will allow a new
interchange between Schuster
Avenue and the future Border
Highway West. The Yandell Drive
bridge will be demolished as part of
this project. Haydon Building Corp.
(haydonbc.com) of Phoenix is the
contractor on the $55 million project.
Inside the core of UTEP, the much
heralded Campus Transformation
continues to take shape. The
Wiggins Plaza project is nearing
completion as crews put the finishing
touches on the landscaping of the
area. New shade trees, seating
areas, and an elliptical labyrinth
have taken up an area between the
Library and Health Sciences build-
ings.
University of Texas System Board
of Regents recently approved $10
million to continue the
Transformation projects, including
Centennial Plaza in the middle of
campus. The area, formerly occupied
by grassy hills, parking lots, and
streets, is currently a pile of dirt.
Transformation projects are timed to
coincide with next years Centennial
Celebration and aim to remove
vehicular traffic from the inner parts
of campus.
UTEP Update:
Schuster Roundabout Completed, Transformation Work Continues
This birds eye view
of Wiggins Plaza
shows the elliptical
labyrinth located
between the
University Library and
the Health Sciences
building. The plaza
includes traffic calm-
ing measures for
vehicles.
(www.onthemove.utep.edu)
Yucca Park Improvements
The City of El Paso held a com-
munity meeting last week to inform
residents of scheduled improve-
ments to Yucca Park. A 1.65 acre
expansion will add recreation area
on the northern side of the park.
Improvements to the park include
new sod, trees, and landscaping as
well as a dedicated 2,000 square
foot chess-playing area that will be
sheltered by a metal canopy. This
area will include four game tables
with a chess board insert; each will
have three attached seats and an
empty spot for wheelchair access.
A large, 144 square foot red and
black chess board will be located
on the floor in the middle of the
area.
The park expansion will also add
four new 16 by 16 picnic units with
shade structures, multiple concrete
paths, benches, scores of new
trees, and runoff controls. Yucca
Park is currently at 16 acres in size
and is located at the corner of
Yarbrough Drive and Yermoland
Drive just south of Bel Air High
School.
City Council awarded the con-
struction contract to Globe Builders
of El Paso in July. Construction
should begin this month with the
completion expected by February
of 2014.
10
Builders Outlook 2013 issue 9
401(k) Basics
Most (85 percent) of employers with
ten or more full-time workers find defined
contribution (DC) retirement plans, such
as 401(k)s, valuable in helping to retain,
recruit and motivate employees. And a
surprising 72 percent of similarly sized
employers that do not offer a DC plan
agree.* To find out why, read on.
Advantages for Employees
A 401(k) plan allows employees to
contribute to an individual retirement
savings account set up on their behalf by
the employer. Employees enjoy the
following advantages:
They can make salary deferral
contributions to traditional 401(k)s,
reducing current taxable income.
They do not have to include employer
contributions in their taxable income
until they withdraw the funds. (Subject
to certain limitations.)
They can direct their funds into various
investment vehicles, if their plan allows,
according to their appetite for risk and
other factors.
Their funds will grow tax-free until they
are distributed.
They can easily see their retirement
balances at any time, unlike traditional
pensions, which require complicated
actuarial calculations.
They own their accounts; they can take
all vested funds with them if they leave
your employ.
A 401(k) plan offers the following
advantages to employers:
Employers can use a well-designed
plan to help attract and keep talented
employees.
Employee salary deferral contributions
reduce employers payroll tax liability.
Employers can deduct their
administration expenses and any
contributions they make to employees
accounts as business expenses.
Employers limit their liability to a
defined contribution, unlike with
traditional pension plans.
To set up a 401(k) plan, employers must
adopt a written document that serves as
the foundation for day-to-day plan
operations. If you have hired someone to
help with your plan, that person likely will
provide the document.
Once you have decided on a 401(k)
plan, you will need to choose the type
plan that is best for youa traditional
401(k) plan, a safe harbor 401(k) plan, or
SIMPLE 401(k) plan.
Traditional 401(k) Plans
A traditional 401(k) plan allows eligible
employees to make pre-tax elective
deferrals through payroll deductions.
Employers can make contributions on
behalf of all participants, make matching
contributions based on employees
elective deferrals, or both. In traditional
401(k) plans, you can design your plan
so that employer contributions vest over
time, according to a schedule.
Employees forfeit unvested funds when
they leave your employment. (Employee
contributions are always 100 percent
vested, or owned, by the employee.)
Traditional 401(k) plans cannot
discriminate in favor of highly
compensated employees. This means
average deferred wages and employer
matching contributions for highly
compensated employees cannot greatly
exceed average deferrals and matches
for non-highly compensated employees.
To ensure that the plan satisfies these
requirements, the employer must
perform annual tests, known as the
Actual Deferral Percentage (ADP) and
Actual Contribution Percentage (ACP)
tests.
Safe harbor 401(k) Plans
A safe harbor 401(k) plan lets
employers avoid the nondiscrimination
tests that apply to traditional 401(k)
plans. It resembles a traditional 401(k)
plan, but, among other things, requires
employer contributions that are fully
vested when made. Employers can make
matching contributions limited to
employees who defer, or contributions on
behalf of all eligible employees,
regardless of whether they make elective
deferrals.
Employers sponsoring safe harbor
401(k) plans must satisfy certain notice
requirements. Each eligible employee for
the plan year must receive written notice
of his/her rights and obligations under the
plan. The notice must describe the safe
harbor method in use and how eligible
employees make elections, and other
pertinent information.
Employers of any size can use a
traditional or safe harbor plan; they can
also combine these plans with other
retirement plans.
SIMPLE 401(k) Plans
The SIMPLE 401(k) plan gives small
businesses a simple, cost-efficient way to
offer retirement benefits to their
employees. It exempts plan sponsors
from the annual nondiscrimination tests
that apply to traditional 401(k) plans. As
with a safe harbor 401(k) plan, the
employer must make employer
contributions that are fully vested.
To be eligible for a SIMPLE 401(k), an
employer must have 100 or fewer
employees who received at least $5,000
in compensation from the employer for
the preceding calendar year and no other
employee retirement plan.
Roth Contributions
Employers with a traditional, safe
harbor or SIMPLE 401(k) plan can allow
employees to make Roth contributions, if
plan documents permit. With Roth
contributions, employees designate
some or all of their contributions as Roth
contributions and make them with after-
tax dollars. This lets them avoid taxation
on these funds when withdrawn after
retirement, subject to certain conditions.
IRS code limits the total amount
contributed to all 401(k) accounts from
both employers and employees,
including Roth contributions, for any one
year. For 2013, contributions cannot
exceed $17,500, plus an additional
$5,500 in catch-up contributions for
participants age 50 or older by year-end.
Limits typically increase every year to
reflect cost of living adjustments.
Over time, a 401(k) fund can grow into
a tidy nest egg and help you retain
valuable employees. For more
information on setting up a 401(k) plan,
please contact us.
*Source: American Benefits Institute,
Attitudes of Employee Benefits Decision
Makers Toward Retirement Plan Tax
Proposals, December 11, 2012
PIONEER BANK
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Expert Advice

Joe Bernal
Employee Benefits
of ElPaso
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.
11
2013 issue 9 Builders Outlook
Give your customers
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(915) 6134168
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e options builders asked
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Program Highlights
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12
Builders Outlook 2013 issue 9
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
NOW is the best time
to buy your new
home in El Paso!
Ahora es el
tiempo para
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una casa nueva
en El Paso!
New Home Buyer`sGuide
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Su gua completa para
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Your New Home
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the next edition of
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The most complete home buying guide
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Unmatched distribution and circulation
Unique dual language layout
Great advertising opportunity
Call Margaret today at 778-5387
Homebuilders Show Housing
Recovery Hasn't Crumbled Yet
Reach Abram Brown \forbes.com.
The foundation for the housing
recovery hasnt been shaken by the
threat of rising rates.
The proof? That two of the nations
largest homebuilders put up better-
than-expected quarterly figures in a
period when economists worried
interest-rate concerns would sap the
housing recoverys strength.
Firstly, Lennar the largest U.S.
homebuilder by market cap, says its
profit rose to $120.7 million, 54 cents
a share, from $87.1 million, 40 cents
a share, a year earlier. Analysts
predicted Lennar would earn 45 cents
a share. Meanwhile, revenue jumped
45% to $1.6 billion, matching Wall
Street predictions.
And KB Home, one of the smaller
homebuilders concentrated mostly on
the West Coast, reported a surge in
profit: $27.3 million, 30 cents a share,
from $3.3 million, 4 cents a share. It
too beat Wall Streets estimates,
which called for 22 cents a share in
earnings. Revenue shot up 29% to
$549 million.
KB Home CEO Jeffrey Mezger
described the housing recoverys
fundamentals as firmly in place,
supported by low inventory levels, an
improving economy and positive
demographic trends. Even if
mortgage costs do rise, Mezger says,
the result would only be temporary.
Similarly, Lennar CEO Stuart Miller
admitted his company might see
bumps along the road that may
impact the short-term pace of the
recovery, but he sees a long-term
outlook that remains extremely
bright.
Another welcome sign was the
increase in home prices reported by
the two homebuilders. KB Home said
overall selling price rose 22% to
$299,100, and it delivered 6% more
homes. At Lennar, selling price rose
33% to $291,000, and homes
delivered increased 37%.
In addition to KB Home and Lennar,
other major U.S. homebuilders
include D.R. Horton, the second
largest by market cap, NVR Inc., and
Standard Pacific.
The increase in housing prices and
salesstrong signals that the recovery
continues apacewas also reflected
this morning in new economic data.
According to the S&P/Case-Shiller
composite index, home sales
increased 0.6% in July, and prices
rose 12.4%. The Case-Shiller surveys
housing results in 20 metropolitan
areas.
Membership News
Thanks to our SEPTEMBER SODA SPONSOR:
ALON BRANDS
11395 James Watt, Suite A-11 79936
915-633-8002
13
2013 Issue 9 Builders Outlook
www.elpasobuilders.com
www.epbuilders.org
UPCOMING EVENTS |
Jaimes
Courier
Service,Inc.
Jaimes
Courier
Service,Inc.
915-549-4533
or
915-478-2404
Bonded, insured for
your peace of mind.
OCTOBER 10
11:00 BOARD MEETING
12:00 GENERAL MEETING
EL PASO CLUB
ChASE BANK BLDG.
OCTOBER 11, 12, 13
hOME & GARDEN ShOW
EL PASO CONVENTION CENTER
OCTOBER 29
hALLOWEEN BOWLING EVENT
12:00 NOON
BOWL EL PASO
NOVEMBER 13
EL PASO DESERT OPEN
PAINTED DUNES
9:00 ShOTGUN
RENEWALS |
NEW MEMBERS |
SODA SPONSOR |
BONDED BUILDERS hOME WARRANTY
AMERICAN EAGLE BRICK CO.
CASTILLO ELECTRIC
DEMPSEY APPRAISAL SERVICE, INC.
CULLERS & CALDWELL BUILDERS
ACCENT hOMES
MA hOMES
BARRON SUPPLY
CAPITAL BANK, SSB
KWAL PAINT CO.
SOUThWEST DCOR EL PASO CORP.
CUSTOM DREAM hOME
BMC SELECT
NEW hORIZON BUILDERS
BARRAGAN & ASSOCIATES
STEWART TITLE COMPANY
STRUCSURE hOME WARRANTY
SUN CITY WINNELSON
ACME BRICK
EP MASS MEDIA ADVERTISING, INC.
CONTACT: ORLANDO RODRIGUEZ
11385 JAMES WATT, STE. B-12
EL PASO, TX 79936
915-595-2492
ChAPARRAL MATERIALS, INC.
CONTACT: JEREMY TERCERO
1001 EASTSIDE
EL PASO, TX 79905
505-771-7700
NOVA BUILT, LLC.
CONTACT: YVONNE CAPOLDI
4800 N. STANTON #29
EL PASO, TX 79902
915-494-0468
Hi everyone, just want to write a
quick note about the up and coming
events of the associates council. If you
have not done so please enter your
team in the Halloween Costume
bowling outing. There will be prizes for
all kinds of crazy things especially the
best costume. We are in need of lane
sponsors and give always so if you can
find it in your heart or budget to give us
a hand please contact Margret.
We still have a few Sponsorships for
the El Paso Desert Open Pro Am
and are in need of items for the Goodie
Bags. For information call Margret. The
tournament (teams)is SOLD OUT. The
date of the tournament is November
13thplay starts at 9:00 am. All Players
must have a USGA handicap (Sun
Country card in this area)
Happy Halloween to everyone. See
you at the Fall Home Show and the
Bowling Tournament.
14
Builders Outlook 2013 issue 9
Sam Shallenberger
Western Wholesale Supply
Associates Council
Call 778-5387
for more information today.
OCTOBER 29
HALLOWEEN BOOWLING
12:00 NOON BOWL EL PASO call 778-5387 for info,
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