Builders Outlook Feb 2012
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Transcript of Builders Outlook Feb 2012
Issue 2 2012 Building El Paso’s tomorrow todayTM
years
E L P A S O
BUILDERSA S S O C I A T I O N O F
B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 194 6
Builders Outlook
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www.elpasobuilders.com
Obama addresses housing in State of the Union Address
During his State of the Union
address to the nation on Jan.
24, President Obama focused
part of his speech on housing issues,
offering a proposal to help families stay
in their homes and stem the tide of
foreclosures.
“President Obama’s refinancing plan
offers an opportunity for continued
exploration of ways to aid struggling
home owners and tackle the foreclosure
crisis,” said NAHB Chairman Bob
Nielsen.
“We look forward to working with
the White House and Congress to tackle
this issue and continue to make
progress on foreclosures that are
hampering the housing market,” he
said.
Nielsen also reminded the media and
public office seekers of the critical
importance that Americans continue to
place on the dream of homeownership,
and called on policymakers to reopen
the lines of credit for builders and
buyers alike in order to create jobs and
further stabilize housing and the
economy.
“In this election year, voters will be
looking closely at President Obama, the
GOP presidential contenders and
congressional candidates from both
political parties to determine how they
plan to put housing and the economy
back on track,” said Nielsen.
“How the candidates respond will
decide not only their political fate but
the economic prospects of most
Americans,” he said.
Coverage of the President’s speech
by The Hill included a story on his
proposal to help ease foreclosures and
discussed NAHB’s positions on
housing extensively.
“The group's main priority is on the
lending front — home builders are
urging Congress and federal regulators
to figure out a way to get credit moving
again for builders so they can start
projects in markets where new housing
stock is needed, and for home owners,”
the article said.
In an article focusing on the
President’s refinancing proposals in his
State of the Union address and how the
industry is looking for the White House
to do more for housing, the
Philadelphia Inquirer cited NAHB
Chairman Bob Nielsen.
“National Association of Home
Builders Chairman Bob Nielsen
applauded Obama’s statement that
‘there has never been a better time to
build,’ but he added that wouldn’t be
possible without easing credit for the
group’s members and buyers,” the story
said.
A Response From the Home
Builders Institute
John Courson,
president and CEO
of the Home
Builders Institute
(HBI), also
commented on the
State of the Union
r e m a r k s ,
commending the
President’s call to support “a national
commitment to train 2 million
Americans with skills that will lead
directly to jobs.”
“Investing in job skills training to
boost employment and spur economic
growth is critical for meeting the
demand for a qualified workforce in the
residential construction sector,” said
Courson.
“Skills training and job placement are
key pillars of the HBI mission,” he
added.
Courson noted that a need for skilled
workers is beginning to re-emerge with
the slow return of the housing industry
from the economic downturn.
He cited NAHB projections that
housing starts would increase by 17%
this year.
Courson also cited a report from the
ManpowerGroup that 52% of
employers are having difficulty filling
job openings, and that the top category
of hard-to-fill jobs is skilled trades.
Courson said that HBI agreed with
the President’s assessment that many
companies that want to hire cannot find
workers with the right skills.
HBI, he added, “has the workforce
development programs in place so that
we can, as the President noted, ‘turn our
unemployment systems into a
reemployment system that puts people
to work.’ The residential construction
sector is poised and ready to help our
nation build a strong economy.”
“We look forward to working with
the President, Congress and others to
ensure
Builders Outlook2 ISSUE 2 2012
The month of February is upon us and we
move into the new month with hope and
prayers. The local economy has continued
to show signs of life and some of that is
coming to our industry. We still are a long
way from where we were only three years
ago, but compared to the rest of the country
we continue to buck the trends. I think it has
a lot to do with the strength that we have
from living in the desert, a rough
unforgiving land that we call home. So
many times we’ve considered ourselves less
fortunate than the rest of the world, but what
we’ve come to know is that we have a
resilience few others dare. I’m proud to be
an El Pasoan and proud to lead this fine
federation. We aren’t perfect but we are
here fighting the good fight. Our successes
have been in direct proportion to our
members and we’ve got the best in the
business.
This month is the month for some great
opportunities for us as we celebrate and
come together for some good things. First
is our bi-monthly general meeting held on
February 8 at the El Paso Club. The food
and atmosphere really is good for us and
this month I’d like to thank Sonja Scanlon
from Alon Brands for sponsoring the
meeting. This will be a good time for us to
talk, report and follow up on the action
from the last few months and look at
what’s coming up. Your attendance at
these meetings is a crucial part of your
membership and you should come and
break bread with us.
We continue the month with our
Valentine’s Day Bowling Tournament
where everyone wins and the fun starts.
Bowl El Paso on the eastside will host
about 40 or 50 of us for a fun filled
afternoon. We’ll give you a full report on
that event later on in March.
I would like to thank the members who
participated in the Spring Home Show at
the Civic Center last month. The crowds
were big especially on Saturday when
Ahmed Hassan from HGTV was there.
What a nice guy to stick around and meet
and greet so many people. Ray told me he
was signing away for over 4 hours.
Thanks to our promoters RJ Promotions
for a great job. Our goal is to double or
triple the number of members showcasing
at next year’s show. Stay tuned.
We also will be meeting with our City
leaders again in February, looking for
ways to help each other reach our goals of
making El Paso a great place to live and
grow. Sometimes we get locked into some
disagreements but overall our job is to be
partners with them.
Finally, keep in mind that our
association is only as good as you make it.
Get involved with us, provide us your
thoughts, prayers, and support in any way
you can. It is my goal to continue the path
towards our mission and I can only do this
Builders Outlook3
Frank
Arroyos
President,
El Paso Association
of Builders
President’s Message
This school year has passed by very
quickly and it is now past the halfway
mark to completion. That means students
will soon be experiencing the annual
standardized testing. During the past two
or three legislative sessions, TAKS testing
has been under fire from educators.
According to the critics, education had
morphed into the process of teaching the
test; something I agreed with.
Since the federal mandate by the “No
Child Left Behind” program was passed
during the first Bush administration, Texas
school districts have battled with the right
direction to take when addressing
educational accountability.
Since I took office in 2003, I cannot
recall a moment when there was any solid
consensus for TAAS, TAKS or now for
State of Texas Assessment of academic
Readiness (STAAR). I believe that a big
part of the problem is that parents were
never clear on what the content or intent of
the testing was for.
STAAR attempts to change that by
making the test an end of course exam. At
least with this measure, there might be
some better understanding for parents who
want to help their children do well on the
exam.
However, at this point with the exams
looming on the very near horizon, even
local school officials are vague on what
the tests will be like. What is known is that
the end of course exams will count fifteen
per cent toward a student’s grade point
average (GPA). There are indications that
parents may not know the full GPA until
weeks or even months after the end of the
school year. Once again, there is in place
the academic standards, as measured by
the end of course exams, that will not
provide the parents a clear picture of their
students performance.
A reasonable person would probably
scratch his or her head in amazement as to
how disconnected the process is.
It is easy to understand why there is such
disconnect; since 2003, educators in the
legislature have been locked out of the
room when education bills were drafted.
Committee leaders with no educational
background were guided by lobbyists with
different priorities than parents or teachers.
Another part to this problem is the
application of the legislation by the
bureaucrats. They read the bill and write
the rules in the manner by which they
interpret the law. I have seen where the
interpretation is nowhere close to the
legislative intent.
This problem exists because legislators,
who historically supported better
legislation, have been voted out of office;
or, the majority in the house and senate
support the lobby driven educational
programs.
There is a solution: VOTING.
Educators have changed the legislature
more than once. Governor Mark White
was voted out of office because he
imposed on teachers things they did not
want. Representative Greusendorf was
voted out of office because of legislation
he filed and, in some cases, passed that
was worse than anything else filed.
In 2012 and 2014, educators must make
the difference. During the last session, my
office received dozens of calls, letters and
emails from educators demanding action
against certain bills that were harmful to
teachers. We researched the voting
records of those who contacted the office
and found that only around 40% voted in
2010; 25% of those households had no
registered voters; and, that many of those
households had multiple registered voters
but only one actual vote in the 2010
general election. That level of
participation will change nothing.
I am asking that every teacher and their
families vote; especially in the year we
elect the governor because those statewide
races impact local education more than the
presidential year elections.
Standardized tests at issue in elections
Chente Quintanilla
State Representative
Guest Perspective
Builders Outlook4 ISSUE 2 2012
We represent a fair amount of the home
building industry through membership and
we impact those who are not members as
well. In a review of who our
builder/developer/remodeler members are
we can comfortably assert that we have the
top eight out of ten of the area’s most
prolific home builders. The same hold true
for the developers and we represent the
most elite in remodelers. This shouldn’t
come as news to most. Our membership
continues to bring inquiries and we add
new members every month.
It’s the associates who make up the
largest segment of a builder association and
its true here as well. Many people are not
aware that in our ranks are some of the
area’s best legal minds, professionals who
understand the value and principles that
drive the home building industry in El
Paso. As the industry continues to grow it
gets more complicated and that’s when our
attorney’s become invaluable. They help
our members with property rights,
consumer law, business law and the other
complicated laws that our contractors and
developers come across.
Would it surprise anyone then that our
members include vendors and suppliers?
Of course not, but how about other
associations as members? Why would
business or trade associations join?
Strength in numbers and common risks,
that’s why. How about financial services or
insurance professionals? They too
understand the importance of a strong
home building industry in El Paso. Car
dealers? You bet, as they not only supply
the work vehicles but also those family cars
and trucks that our members buy. It’s the
same thing when we have any business
type in El Paso as a member. It’s the
common thread associated with
membership: value, service and return on
investment.
Over the next month or so we will hear
more about a change in the Plan for El
Paso, a multifaceted document that is
known as the Comprehensive Plan. The
consultants have worked with the city
officials to present a 700 page document on
what direction the city should take when
deciding growth, land use, health, welfare,
and other such things. It is a guide that has
been shown to a lot of El Pasoan’s and
others as the document to give insight into
what the future El Paso should look like.
While there are parts of the Plan that our
membership doesn’t totally agree with
there are some proposals that are
interesting, thought provoking, and doable.
Other parts are wishes. We hope that
through the next process of moving the
Plan forward that we can work on the
sections that concern developing and
building in a cooperative way. The risks are
great enough without adding rules that add
to that risk. What we are asking is that
everyone, citizen, politician, bureaucrat,
builder and associate alike understand that
economics is the driving force for growth
in a community. Lose sight of that and
nothing is accomplished by a plan, no
matter how big.
Perspective
Ray Adauto,
Executive
Vice President
EPAB
Our association’s diversity can help shape our future
Showroom: 2131 Missouri
915 • 533 • 6045 fax • 533• 6096
Thomas R. Brown, Owner
Over the next month or so we will hear more about a change
in the Plan for El Paso, a multifaceted document that is known
as the Comprehensive Plan. The consultants have worked with
the city officials to present a 700 page document on what
direction the city should take when deciding growth, land use,
health, welfare, and other such things.
Builders Outlook 5Issue 2 2012
The index identifies metropolitan
areas that have shown improvement
from their respective troughs in housing
permits, employment and house prices
for at least six consecutive months. The
February index adds some metropolitan
areas that have been particularly weak;
this is due to the fact that the IMI
measures improvement from a bottom,
and some of the hardest hit markets are
showing signs of coming off of extreme
lows. Keeping this in mind, notable
new entrants to list in February include
Miami, Fla; Boston; Detroit; Kansas
City, Mo.; Portland, Ore.; Memphis,
Tenn.; and Salt Lake City.
“The number of improving housing
markets has risen for six consecutive
months, and 36 states now have at least
one metropolitan area on the list,” noted
NAHB Chairman Bob Nielsen, a home
builder from Reno, Nev. “This indicates
that despite the many challenges that
continue to drag on a housing recovery
– including the tight lending
environment for builders and buyers –
improving conditions are slowly but
surely spreading from one housing
market to the next.”
“While many of the markets on the
February IMI are far from fully
recovered, the index points out where
employment, home prices and housing
production are no longer retreating and
have held above their lowest recession
troughs for six months or more,” said
NAHB Chief Economist David Crowe.
“This is a sign that a large cross section
of the country is starting to turn the
corner as local economic conditions
stabilize.”
“The fact that there are nearly 100
markets now on the improving list
shows that the momentum is building
for a housing recovery and that more
buyers and sellers are starting to feel
confident enough to return to the
market,” said Kurt Pfotenhauer, vice
chairman of First American Title
Insurance Company.
The IMI is designed to track housing
markets throughout the country that are
showing signs of improving economic
health. The index measures three sets of
independent monthly data to get a mark
on the top improving Metropolitan
Statistical Areas. The three indicators
that are analyzed are employment
growth from the Bureau of Labor
Statistics, house price appreciation
from Freddie Mac, and single-family
housing permit growth from the U.S.
Census Bureau. NAHB uses the latest
available data from these sources to
generate a list of improving markets. A
metropolitan area must see
improvement in all three areas for at
least six months following their
respective troughs before being
included on the improving markets list.
Seven markets dropped from the
NAHB/First American Improving
Markets Index in February as they
experienced softening house prices.
These metros include San Jose, Calif.;
Washington, D.C.; Kankakee, Ill.; New
Orleans; Worcester, Mass.; Jackson,
Miss.; and Sherman, Texas.
A complete list of all 98 metropolitan
areas currently on the IMI, and a
separate breakout of metros newly
added to the list in February, is
available at: www.nahb.org/imi.
Improving Housing MarketsList of areas now expanded to nearly 100
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The list of housing markets showing measurable improvement expanded by 29 metros in February to include a total of 98
entries on the National Association of Home Builders/First American Improving Markets Index (IMI), released today. Thirty-six
states are now represented by at least one market on the list.
“While many of the markets on
the February IMI are far from
fully recovered, the index points
out where employment, home
prices and housing production are
no longer retreating and have held
above their lowest recession
troughs for six months or more,”
said NAHB Chief Economist
David Crowe.
Builders Outlook6 ISSUE 2 2012
From NAHB
Nationwide housing affordability, asmeasured by the National Association ofHome Builders/Wells Fargo HousingOpportunity Index (HOI), rose to arecord level during the fourth quarter of2011, while prospective home buyerscontinued to feel the constraints oftighter credit standards and a softeconomy.
HOI data released today indicated that75.9 percent of all new and existinghomes sold in the fourth quarter wereaffordable to families earning thenational median income of $64,200, thehighest percentage recorded in the 20-year history of the index.
“While today’s report indicates thathomeownership is within reach of morehouseholds than it has been for morethan two decades, overly restrictivelending conditions confronting homebuyers and builders remain significantobstacles to many potential homes sales,even with interest rates at historicallylow levels,” said Barry Rutenberg,chairman of the National Association ofHome Builders (NAHB) and a homebuilder from Gainesville, Fla.
In Youngstown-Warren-Boardman,Ohio, Pa., the most affordable majorhousing market in the country during thefourth quarter, 95.1 percent of all homessold during the quarter were affordableto households earning the area’s medianfamily income of $54,900.
Also ranking at the top of the mostaffordable major housing markets, indescending order were Lakeland-WinterHaven, Fla.; Modesto, Calif.;Harrisburg-Carlisle, Pa.; and Toledo,Ohio.
Among smaller housing markets, themost affordable was Kokomo, Ind.,where 99.2 percent of homes sold duringthe fourth quarter of 2011 wereaffordable to families earning the medianincome of $59,100. Other smallerhousing markets at the top of the indexincluded Fairbanks, Alaska; Cumberland,Md.-W.Va.; Lima, Ohio; and Rockford,Ill.
In New York-White Plain-Wayne,N.Y.-N.J., the least affordable majorhousing market during 2011’s fourthquarter, 29.0 percent of all homes soldwere affordable to those earning thearea’s median income of $67,400. This
was the 15th consecutive quarter inwhich the New York metropolitandivision held this position.
Other major metro area at the bottomof the affordability index includedHonolulu; San Francisco-San Mateo-Redwood City, Calif.; Santa Ana-Anaheim-Irvine, Calif.; and LosAngeles-Long Beach-Glendale, Calif.,respectively. (Editor’s note: El Paso,Texas ranked 8th in least affordablecategory for populations of 500,000 ormore. El Paso’s median income isaround $37,000 a year for a family offour.)
Ocean City, N.J., where 47.5 percentof the homes were affordable to familiesearning the median income of $70,100,was the least affordable of the smallermetro housing markets in the countryduring the fourth quarter. Other smallmetro areas ranking near the bottomincluded Laredo, Texas; San LuisObispo-Paso Robles, Calif.; Santa Cruz-Watsonville, Calif.; and Brownsville-Harlingen, Texas.
The NAHB/Wells Fargo HOI is ameasure of the percentage of homes soldin a given area that are affordable to
families earning that area’s medianincome during a specific quarter. Pricesof new and existing homes sold arecollected from actual court records byFirst American Real Estate Solutions, amarketing company. Mortgage financingconditions incorporate interest rates onfixed- and adjustable-rate loans reportedby the Federal Housing Finance Board.
The NAHB/Wells Fargo HousingOpportunity Index is strictly the productof NAHB Economics, and is not seen orinfluenced by any outside party prior tobeing released to the public.
Affordability Reaches Record Level
Tight Credit Conditions Impede Housing Market
El Paso continues to fall into bottom 10 least affordable
El Paso ranked 8th in least
affordable category for
populations of 500,000 or
more. El Paso’s median
income is around $37,000 a
year for a family of four.)
The centerpiece of the Patient Protectionand Affordable Care Act, health insuranceexchanges, won’t go into effect until 2014.However, some portions of the law willbegin taking effect this year. Here’s anoverview of some of the changes you’ll see.
A new health plan model.
Starting on January 1, accountable careorganizations (ACOs) can enter intocontracts with Medicare. The AffordableCare Act provides incentives for physiciansand hospitals to join together in ACOs,integrated healthcare systems thatcoordinate patient care to improve quality,prevent disease and illness and reduceunnecessary hospital admissions. ACOsthat furnish high-quality services will berewarded based on standards that they helpdevelop, based on solid medical evidence.
Many insurers and employers will bewatching to see if ACOs can deliver qualityhealthcare at a savings to Medicare patients.If they can, look for employer groups tomove to ACO models. Starting on March23, health insurers and group health plansmust provide two documents designed tohelp plan members understand theirbenefits: a standardized summary ofbenefits and coverage and a uniform
glossary of health insurance coverageterms. If you have a fully insured plan, yourinsurer will provide these documents. Thesummary will contain simple and consistentinformation about health plan benefits andcoverage. It will allow individuals to easilycompare different coverage options bysummarizing key features, such as coveredbenefits, cost-sharing provisions, coveragelimitations and exceptions. People willreceive the summary when shopping forcoverage, enrolling in coverage, at eachnew plan year, and within seven days ofrequesting a copy from their healthinsurance issuer or group health plan.
A new fee.
For policy or plan years ending afterSept. 30, 2012, issuers and employerssponsoring certain group health plans mustpay a fee of $1 per member per year. Thefee jumps to $2 per member per year forpolicy or plan years ending after Sept. 30,2013, and then is subject to adjustment.Fees will go to the Patient-CenteredOutcomes Research Institute (PCORI) tofund research that will help inform healthcare decisions. PCORI, an independentnonprofit organization established byCongress through the Affordable Care Act,will seek to provide evidence on theeffectiveness of different treatment optionsfor different patients. Studies will comparedrugs, medical devices, tests, surgeries andways to deliver healthcare.
A new way of keeping medical records.The first regulation implementingelectronic health records will go into effecton October 1. Healthcare remains one of thefew industries that rely on paper records.The Affordable Care Act institutes a seriesof changes to standardize medical billingand requires health plans to begin adopting
and implementing rules for the secure,confidential, electronic exchange of healthinformation. Using electronic healthrecords will reduce paperwork andadministrative burdens, cut costs, reducemedical errors and, most importantly,improve the quality of care.
New reporting requirements.
Employers that issue 250 or more W-2forms should be preparing to report theircontributions toward employees’ healthinsurance premiums on W-2s for tax year2012 (which go out in early 2013). All otheremployers must comply by tax year 2014.Although employees who terminate theiremployment before the end of 2012 mayrequest an early W-2, employers are notrequired to report health coverage costs onthose early W-2 forms.
The IRS has clarified that the reporting isinformational only, to inform employees ofthe cost of their health care coverage, anddoes not cause excludable employer-provided health care coverage to becometaxable. The IRS further clarified that“applicable employer-sponsored coverage”
does not include dental or vision coverage,unless they are included in a major medicalplan. It also does not include long-term careor disability coverage. Finally, the law doesnot require employers to send a Form W-2with healthcare reporting information toretirees or other former employees whoreceive no compensation from theemployer. To calculate the premiumamount, use the monthly premium rate for afully insured plan or the COBRA premiumequivalent rate minus the 2 percentadministrative fee for a self-insured healthplan. Include both employer and employeecontributions; employer contributions tomedical savings accounts (MSAs), healthsavings accounts (HSAs), healthreimbursement arrangements and mostflexible spending accounts (FSAs) areexcluded.
Joe Bernal is a licensed insurance and
financial services professional and
member of the El Paso Association of
Builders. He may be contacted at:
Builders Outlook 7ISSUE 2 2012
Joe Bernal
Employee Benefits of El Paso
Guest ADVICE Health Care Reform: What’s happening in 2012?
El Paso Disposal
772-7495
EPABON THE SCENE
Spring Home Show
features ‘Yard CrashersAsssociates Meeting
The 2012 Spring Home Show present-
ed by the El Paso Association of Builders
was a great way to start 2012. Our part-
ner producer, R J Promotions of St.
Joseph, Missouri gave El Paso what it
wanted in a show: great exhibitors and a
very “hot” TV star. While the booths
were doing some bang up business dur-
ing the first few hours of the show noth-
ing compared to the throngs of visitors
that showed up on Saturday to see HGTV
and DIY star Ahmed Hassan of “Yard
Crashers” fame. Hassan met the large
crowd with smiles and hugs as the hand-
some and talented young star didn’t hesi-
tate to press the flesh. “In all the years
that I’ve done shows with talent this has
got to be one of the best experiences for
the audience,” RJ Promotions floor agent
Reagan Bartram said. No doubt the
ladies liked Ahmed but it was the guys
who came to see him that surprised even
the most experienced show staff. “It was
amazing to see that the guys enjoyed vis-
iting with Ahmed nearly as much as the
ladies, but they also had some technical
questions that Ahmed was able to answer
for the most part,” said Ray Adauto. It
was posted that Hassan would appear for
a couple of hours but instead he worked
the crowd for nearly five hours. “I’m
tired, but I’m so happy to be with my
fans. This is what I love about being on
the show and it’s what I live for,” Ahmed
said.
EPAB member 84Lumber took full
advantage of Hassan as he was the main
attraction at a nailing contest. Throngs of
fans gathered around the exhibit in order
to see the contest and watch.
Texas Gas also had a great outing as
John Reich told the Outlook of their suc-
cess. “I have to tell you, this was a great
show and we had a lot of fun doing it,”
Reich said. “Our display was next to
Lowes and the crowds were overwhelm-
ing,” he continued.
The Spring Home Show produced by
R J Promotions is the only home show
exhibit that the El Paso Association of
Builders endorses. This is the third year
for the partnership. The 2013 Spring
Home Show is already being mapped and
we’re sure R J will bring in another top
notch entertainer. We’re also hopeful
that Ahmed will bring his TV show to El
Paso and makeover a local yard.
The Associates Council met at the EPAB offices in
January. The meeting was held to go over the upcoming
events and to report on the Spring Home Show. A good
crowd showed up to get reports from Sam
Shallenberger, Associates Council Chair, and also from
Ray Adauto.
Sam reported that our Spring Home Show had been
well attended especially with the HGTV “Yard Crasher”
star Ahmed Hassan. Attendees also got an opportunity
to visit with a variety of show exhibitors ranging from
home builders to water treatment vendors.
Also on the agenda was upcoming February 14 bowl-
ing outing to be held at Bowl El Paso. Sam talked about
the variety of prizes and the fun aspect of the event. The
associates were also told to expect a few educational
sessions and some new events including an all new for-
mat on the upcoming Spring Golf Tournament.
A show of hands also gave the association permission
to pursue a concealed handgun class for members and
nonmembers alike. More information will be forthcom-
ing on this class later during the month.
Associates attending also had a chance for some great
gift drawings including a portable grill station won by
Nailea Fernandez; a free general meeting lunch won by
Art Salazar; and a windbreaker won by a guest. All in
all a fun time for our Associates Council.
Issue 2 2012
Everyone needs a “cornerman”By Ray Adauto
Some of you may know who Angelo Dundee was and some of you won’t. I doubt seriously if anyone alive today doesn’t rec-
ognize the name Mohammed Ali (Cassius Clay); or perhaps Sugar Ray Leonard, or Joe Frazier. If you remember these names
perhaps you should remember Angelo Dundee, because frankly you couldn’t have any of those other names in your collective
memory without Angelo. It was Angelo Dundee, soft spoken Italian man who turned Ali, Frazier, Sugar Ray and others into the
boxing world’s most prolific boxers. In boxing circles he was one of the best, if not the best, cornermen.
Angelo Dundee was there with other notables in the professional boxing world. He was the cornerman for George Foreman
when he took on Evander Holyfield. In addition, Dundee also trained such world champions as Luis Rodriguez, Willie Pastrano,
Ralph Dupas, José Nápoles, Pinklon Thomas, Trevor Berbick, Jimmy Ellis, Wilfredo Gómez, Michael Nunn and Sugar Ramos,
as well as other boxers such as Bill Bossio, David Estrada, Douglas Valliant, Jimmy Lange, Tom Zbikowski and Pat O'Connor.
I got to meet Angelo Dundee while attending an national Executive Officers meeting in Providence, Rhode Island. He was
about 87 then and in remarkable health, keen, and so gracious to a guy from El Paso, Texas. Angelo Dundee was a man’s man.
A gentle, kind, man. He was a cornerman, a trainer.
The point of this story isn’t that I got to meet Angelo or that he turned out to be the gentleman that I always thought of him as.
No it’s got a lesson that sends a message about success as much as anything else. The message? We can’t be champions alone.
No matter what you think of yourself, even if you reign as the world champion of something, be it football, baseball, boxing or
career, you didn’t get there without a cornerman. You need someone that can acknowledge your weaknesses and sharpen your
strengths.
As an association member you need to know that others may have gone through what you’re experiencing and they are more
than willing to help give you advice or training. Acknowledging that you need others is the first step to success and a way to
maintain it. If you plan to diet find someone to help. If you need help with taxes, find someone to help. If you are struggling in
business find a business trainer to help you. Ali, Frazier, and Leonard ad great as they were all knew they needed Angelo Dundee.
When you take the time to look for a cornerman you find yourself on the path to success. Find your own Angelo Dundee and
train to your success.
Builders Outlook10ISSUE 2 2012
Zeroing in on yet another deficiency of a
faulty appraisal process that is hurting home
values, hampering a housing recovery and
often killing sales of homes coming in
below the contract sales price, the
Government Accountability Office (GAO)
earlier this month reported that the Appraisal
Subcommittee, which oversees the appraiser
regulatory programs established by the
states, needs to improve its monitoring
procedures.
“These findings underscore the need to
establish an effective oversight system to
ensure that appraisals accurately reflect true
market values and don’t harm aspiring home
buyers or builders,” said NAHB Chairman
Bob Nielsen, a home builder from Reno,
Nev.
A recent NAHB survey shows that one
out three builders have lost signed sales
contracts because of flawed appraisals and a
fall survey conducted by the National
Association of Realtors shows that 18
percent of Realtors® reported a recent
contract cancellation or delay as a result of a
low appraisal.
Numerous flaws in the appraisal system
have been causing inaccurate home
valuations, both in times of housing
weakness and strength. NAHB has been
actively seeking improvements in appraiser
education and training, particularly for
appraisals of new homes, as well as more
rigorous oversight so appraisal guidelines
are enforced and errors can be corrected as
they occur.
The GAO report found the Appraisal
Subcommittee’s “enforcement tools and
procedures for reporting compliance levels
have been limited.” The GAO cited “several
weaknesses” that have potentially limited
the subcommittee’s ability to monitor state
appraiser regulatory agencies, the federal
financial institution regulators and the
Appraisal Foundation, a private, non-profit
corporation that sets criteria for appraisals
and appraisers.
Under the Dodd-Frank Act, the Appraisal
Subcommittee was granted the authority to
establish a national hotline to receive
complaints over noncompliance with
appraisal independence standards and
grievances from appraisers, individuals or
other entities over attempts to improperly
influence appraisers or the appraisal process.
Currently, no such hotline exists and the
GAO report states that the creation of a
national hotline could strain the Appraisal
Subcommittee’s resources.
Observing that “the critical role of real
estate appraisals in mortgage underwriting
underscores the importance of effective
regulation of the appraisal industry,” the
GAO study calls on the Appraisal
Subcommittee to strengthen its oversight by
developing specific policies and procedures
for monitoring the appraisal requirements of
the federal financial institutions regulators.
How homes are valued can have a
dramatic effect on home owners’ mortgages,
foreclosure rates, the health of banks and,
ultimately, the condition of the U.S.
financial system, said Nielsen.
“The current system is not working,” he
said. “We must resolve a flawed appraisal
process that produces inaccurate assessment
of home values, because this fosters price
instability, puts more families in danger of
default or foreclosure, and undermines the
housing and economic recovery. It’s time
that regulators, appraisers, lenders and all of
the stakeholders in this debate come
together and agree on major reforms in
appraisal practices and oversight to ensure
that homes are appraised at their fair market
rate.”
GAO Study Finds
Appraisal Process
Inadequately
Monitored
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5400 Suncrest Dr. C-6 El Paso, Tx. 79912
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Fx. (915-833-6437
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Builders Outlook issue 2 2012 11
Builders Outlook12issue 2 2012
years
E L PA S o
BUILDERSA S S o C I A T I o n o F
B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 194 6
A look back...Moments in our 65 year history
The year was 1995. Population of El Paso County in 1995: 661,864. The world was tuned into the O.J. Simpsoncriminal trial that started in January. In February of that year the Dow Jones Industrial Average closed above4000 for the first time ever. The United Kingdom's oldest investment banking firm, Barings Bank, collapses after
securities broker Nick Leeson loses $1.4 billion by speculating on the Tokyo Stock Exchange. In Denver, Colorado,Stapleton Airport closes and is replaced by the new Denver International Airport, the largest in the United States. Sadly,in March of 1995 Tejano superstar Selena is killed by the president of her own fanclub, Yolanda Saldívar. April broughtus the bombing of the Oklahoma City Federal building. Homegrown terrorism was real and its ugly head had risen withdevastating results. On a much lighter note the Rock and Roll Hall of Fame opened later that year, and Pope John PaulII visited the U.S. in late October. At the movies it was the movie Babe, about a little pig with a big heart, or Dead ManWalking with Tom Hanks taking the most money in that year.
Back here at home the El Paso Association of Builders is led by President Rudy Guel. The VP was Pat Woods,Treasurer John Cullers, Secretary is Bobby Bowling IV, Associates chair Bill Royer, and the E.O. was John Gross. Thecouncils numbered five with Wayne Grinnell leading Land Use. Women’s Council was headed up by Dorothy Swack.February 1995 meant a trip to Austin for Legislative Rally Day, and time was getting close for the upcoming Home Show.Concerning the trip to Austin, John Gross told the members that a round trip flight to Austin on Southwest Airlines wouldbe $124!
Looking at some of the issues for 1995 it’s interesting to note that there was a battle going on with the Public ServiceBoard over a proposal to charge $1,146.00 per water meter for each new home or single water hookup. The associationwas fighting that proposal with action from the Government affairs committee headed up by Bobby Bowling IV. WayneGrinnell was heading up a committee working on a proposed landscape ordinance. Tony Conde and John Ivey, Jr. werehelping with the politics of that proposal. There was also a move afoot to get members into the PAC especially with theupcoming city elections. Wayne would state “the political war chest should be large and noisy”. El Paso was going toexperience one of the most devastating economic events. In 1995, the Department of Defense recommended that the U.S.3d Armored Cavalry Regiment be relocated to Fort Carson, Colorado. Efforts to consolidate units from another post withthose units that remained at Fort Bliss were overruled by the Base Realignment and Closing Commission, leaving FortBliss without any armored vehicles.
Our Builders Outlook newsletter was printed on color paper and was 16 pages. Featured ads included those from SunWorld Savings Bank, Bluebonnet Savings Bank, FSB; Alpha Distributing; Stewart Title; BMC West; Sarabias PortableJons, Inc.; Lawyers Title; Pioneer Mortgage Co.; and Mobile Comm just to name a few. Some are still around, others not.1995 was no different than 2012 in that an announcement was placed asking for reservations for events and meetings wereimportant. RSVP is still not in some people’s vocabulary. The more things change, the more they are the same.
Compiled to By Ray AdautoInformation for this column came from a variety of sources including Wikipedia, US Census Data, and various news organizations.
A Look Back is a monthly feature of the El Paso Association ofBuilders publication the Builders Outlook. Look for more history of
the El Paso Association of Builders in coming editions.
FEBRUARY 14
VALENTINE’S DAY
BOWLING EVENT
BOWL EL PASO
12:30 TO 4:00 P.M.
FEBRUARY 22
TAB WINTER MEETINGS
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LAND USE MEETING
EPAB NOON
MARCH 7
ASSOCIATES COUNCIL
3:30 PM
EPAB OFFICE
MARCH 14
BOARD MEETING
12:00 NOON
EPAB OFFICE
APRIL 10
SPRING GOLF
TOURNAMENT
PAINTED DUNES
APRIL 11
11:00 BOARD MEETING
12:00 GENERAL
MEETING
EL PASO CLUB
Builders Outlook 13ISSUE 2 2012
UPCoMInG EVEnTS
Membership news
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Builders Outlook14 ISSUE 2 2012
Industry Reports
Associates�Council
Associates Council met in January to
discuss plans for 2012, introduce some new
associates and bring the group up to date. It
was a great time and I want to thank all of
the members who came. We started the
year with a really good Spring Home Show
at the Convention Center. While traffic was
real good over the three days nothing
compared to the crowds on Saturday as the
HGTV star Ahmed Hassan really drew
well. The displays were nice but most
importantly for many of us was that we got
a good opportunity to let the consumer
know who we are first as a business and
then as a member. I have a real big wish for
the Spring Home Show in 2013 and that is
that more members see the value of
participating in the show. I guarantee you
that you can live off the referrals if you
work them right! Nothing says success like
it.
Our next outing is the much anticipated
Valentine’s Day Bowling event. Should be
a lot of fun with the theme of the day and
the fun time we have bowling. You know
it’s also neat when we get to give out some
cool prizes. Ray has provided a $50 dining
card and it looks like Western Wholesale is
going to be able to offer a wonderful high
end mixer again. As of the deadline we still
had a few lanes available so come out and
enjoy a fun afternoon. What a great place
to bring a customer!
The chili-menudo cook-off is still in the
works as is a tour of homes and some other
events later on this year. We will be
offering a few education classes soon as
well as a really cool concealed hand gun
class sometime soon. Stay tuned as your
Associates Council moves forward. Good
luck and good selling. See you at our next
meeting.
Sam�ShallenbergerWestern�Wholesale
Supply
Land�Use�Council
It has been a long road, but the City of El
Paso currently in the process of finalizing
the Comprehensive Plan for El Paso.
Through extensive coordination with
industry members, the presentation of the
plan to CPC and the City Council has been
postponed until March in order to allow for
time for stakeholders to provide their
comments. The latest draft plan and list of
proposed updates are available for review
online at www.planelpaso.org
For those of you who are unfamiliar with
the plan, it is the document that provides
guidance to Council and staff regarding the
project and development goals of the city. It
does not change existing regulations. In
order for regulatory changes to be affected,
individual ordinances must be adopted.
This plan does, however, impact the
opportunities for future land use changes.
For example, if a land owner wishes to
rezone a property, then the planning
department will cross check the proposed
use against the land use map of the
comprehensive plan and make
recommendations to the planning
commission based upon whether or not the
requested zoning is consistent with the
comprehensive plan. Similarly,
thoroughfares will also be checked against
the major thoroughfare plan map that is a
part of the comprehensive plan.
For this reason, it is vital that comments
from all stakeholders be sent to the planning
department. The link to email the City staff
regarding the comprehensive plan process is
available on the “Click here to Email Us!”
link on www.planelpaso.org.
In addition, Sal Masoud is a board
member of the Rio Grande Citizens Forum
and is actively involved in the processes and
status of the proposed Federal Emergency
Management Agency (FEMA) Flood
Insurance Rate Map (FIRM) updates.
Information regarding this status may be
viewed on the City’s website at
www.elpasotexas.gov. It will also continue
to be a topic of discussion at our Land Use
Council meetings on the fourth Wednesday
of each month. We hope to see you there!
Linda�Troncoso
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7365 Remcon Circle
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(915) 613•4168
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BorderSolar
Join UsApril 10
El Paso Association of Builders
Young Designers Golf Tournament
Painted Dunes
12:30PM
Call 778-5387 for information
� execuTive oFFicerS
Frank Arroyos - President
Cisco Homes
edmundo Dena - vice President
Accent Homes
Frank Torres - Secretary/Treasurer
GMF Custom Homes
Sam Shallenberger - Associates council
Western Wholesale Supply
Greg Bowling - immediate Past President
Tropicana Homes
ray Adauto - executive vice President
El Paso Association of Builders
� couNciL/commiTTee cHAirS
Affordable Builders council
Bobby Bowling IV
Associates council
Sam Shallenberger
Build PAc
Randy Bowling
Desert Green Building council
Javier Ruiz
industry Promotions
Greg Bowling
Land use council
Linda Troncoso and Sal Masoud
Young Designer Award
John Chaney
remodelers council
Rudy Guel
membership Drive
Mike Santamaria
Finance committee
Kathy Carrillo
education committee
Frank Spencer
� ADviSorY To THe BoArD
J. Crawford Kerr, Attorney, Firth, Johnson
& Martinez
� BoArD oF DirecTorS
Joe Bernal, Joe Bernal Insurance
Doug Borrett, Karam Co.
Kathy Carrillo, Pioneer Bank
John Chaney, Passage Supply
Sergio Cuartas, BIC Homes
Ted Escobedo,Snappy Publishing
Art Garcia, El Paso Door
Juanita Garcia, ICON Custom Home Builders,LLC
Samira Gonzalez, Edwards Homes
Lorraine Huit, Cardel Design Group
Walter Lujan, Dawco Home Builders
Sal Masoud, Del Rio Engineering
Bruce Meyer, JDW Insurance
Edgar Montiel, Palo Verde Homes
Kathy Parry, Hunt Communities
Javier Ruiz, Senercon & Border Solar
Frank Spencer, Aztec Contractors
Henry Tinajero, Bank of the West
Linda Troncoso, TRE & Associates
Ken Wade, El Paso Building Materials
Adam Winkler, MTI Ready Mix
Paul Zacour, Zacour & Associates
2011 Builder member of The Year
Greg Bowling
Tropicana Homes
20110 Pat cox Award
Kathy Parry
Hunt Communities
2011 Associate of The Year
Sam Shallenberger
Western Wholesale Supply
John Schatzman Award
Bob Bowling III
Tropicana Homes
ePAB Special Award
Rudy Guel
Guel Construction
Honorary Life members
Brad Roe
Cliff Anthes
Wayne Grinnell
Chester Lovelady
Don Henderson
Anna Gil
Past Presidents
committed to Serve
ePAB mission Statement:
The El Paso Association of Builders is a
federated professional organization representing
the home building industry, committed to
enhancing the quality of life in our community by
providing affordable homes of excellence and
value.
The El Paso Association of Builders is a
501C(6) trade organization.
© 2012 Builder’s Outlook
is published and distributed for the
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
Kelly Sorenson
Mark Dyer
Mike Santamaria
John Cullers
Randy Bowling
Doug Schwartz
Del Huit
Robert Baeza
Bobby Bowling, IV
Rudy Guel
Anna Gil
Bradley Roe
Bob Bowling, III
E. H. Baeza
� TAB STATe DirecTorS
Doug Borrett, Karam Co., Life Director
Randy Bowling, Tropicana Homes
� NATioNAL DirecTorS
Bobby Bowling IV.
Demetrio Jimenez
NATioNAL ASSociATioN oF
Home BuiLDerS
(800) 368-5242
TexAS ASSociATioN oF
BuiLDerS
(800)252-3625
www.elpasobuilders.com
CasinoNight FEB 25
Proceeds benefit:
Alamo Ballroom
820 North Raynor St.
Call Ana Gill for ticketss and information 591-0115