7EL PASO

BUILDERS
A S S O C I AT I O N O F
National, State & Local
Building Industry News
2017: Issue 2

RALLY
www.elpasobuilders.com
DAY 17
20

Builders Outlook
SpecialEdition

EPAB meet with leaders in Austin for Rally Day

We made our way to Senator Jose
Rodriguezs office and unfortunately he was
tied up in committee meetings on the floor of
the Senate. However his staff called to let
him know that we had invaded his office
and he was soon in the room with us. We
were joined by his staff. Senator Rodriguez
has been a good friend to new home
construction and construction trades overall.
Our primary talk turned to education and the
need for the state to fund trades education at
the high school level and to provide funding
for transportation and liability insurance for
students who are taking courses in the
trades. Bobby pointed out that you can
draw house framing on the chalk board but
you cant learn how to nail it without going
onsite, and for that to happen Texas needs to
fund trades education. Senator Rodriguez
was very supportive of our stand and said he
would champion whatever he could to get
that done. Our twenty minutes turned to
thirty and we thanked the Senator well.
The contingent then visited with
Representative Mary Gonzalez who asked a

RALLYDAY
simple question when we walked in.
Wheres the women and if just on que the
Members of the ElPaso Association of Builders attended Rally Day at the State women walked into the office.

2017
Capitol February . The biennial event allows our members the opportunity to Representative Gonzalez is concerned with
meet with legislators and discuss issues that will impact the housing industry. immigration and equal rights, including our
More photos on page 8
concerns with immigration and labor.
Representative Gonzalez has been
appointed to the appropriations committee, a
plum appointment where the action is all
by Ray Adauto the Senator. In addition to the visit with our Supply. Our thanks to them for making the about who gets funded.
The El Paso Association of Builders delegation we had the opportunity to attend dinner something we wont soon forget. Our next visit was with Representative Joe
(EPAB) took a trip to the Capitol on February El Paso Days reception and join with a large Our morning began with a quick early trip Pickett the senior legislator from El Paso and
22 to visit with the El Paso delegation in their contingent of community and business to visit our newest representative Evalina one of the highest ranking House members
offices. The purpose of the trip was to leaders in Austin to promote El Paso to the Ortega and her staff. President Rassette led on the hill. He is transportation Chair and
present the political agenda for the Texas greater Texas state delegates. We were on our early contingent to meet with her and with that comes all the responsibilities of the
Association of Builders and the El Paso the plane with such notables as Mayor Oscar Texas Department of Transportation. He is
Association of Builders. A total of twenty Leeser, City Manager Tommy Gonzalez, City an expert in transportation and to prove that
members and two Friends of the EPAB reps Emma Acosta, Peter Svarzbien, and point he has a real model T in his office that
joined together for the trip. The delegation Carl Robinson; Greater Chamber President he and his son hand built piece by piece.
was led by President Don Rassette, Randy Richard Dayoub and Chairman Jack White; Pickett, an avid car collector, said he had to
Bowling and Bobby Bowling IV as captains EPAB member Doug Schwartz and wife sneak each part in through security. It got
for Rally Day. The El Paso contingent joined Emma; among many others. kind of hairy at the end because we almost
over 800 other Texas Association of Builders The trip began with an unofficial lunch at got caught bringing in the engine lift,
members who traveled to the event from all an Austin favorite Guss Memphis Style fried referring to the huge hand crank that lifts the
over Texas. chicken where our own Laura Loy learned engine into the body. He has some serious
In attendance were: that this wasnt just any fried chicken but one concerns on whether or not this session will
John Chaney that was a tad spicy. From there a produce anything of value due to the
Sam Shallenberger contingent went on to the Bullock Texas infighting amongst the senate, legislators and
Sergio Cuartas Museum of History for a lesson on how executive branch. I dont expect much until
Erika Cuartas Texas became Texas. This fascinating we quit fighting... he said.
Edmundo Dena museum has blended the history of Texas Our final visit was with Representative
Edgar Garcia and its people in a fun factual lesson on the present our important legislative agenda and Cesar Blanco. He met us in the hallway
Maribel Garcia story of us. I have to say that this was a frankly to let each one of us meet each other. outside Picketts office and promptly took us
Frank Ortega neat experience for me as a history buff and As a freshman Representative Ortega is hard to the floor of the House. Blanco gave the
Giselle Ortega as a guy who just loves learning, said John at work to learn the ins and outs of the contingent a private escorted tour of the
Don Rassette Chaney. Sometimes it was Chaney who system. She has a capable staff to help but chamber from inside the gold Rail
Luis Rosas turned teacher and gave the rest of us, the action is fast and furious. something that is unusual except for some
Fernando Torres especially Carlos Villalobos, a historical Our next visit was with Representative Joe very important guests. He showed the group
Walter Lujan viewpoint not necessarily on the walls at the Moody and we were joined by the entire all the inner workings of his desk and pointed
Carlos Villalobos museum. contingent in his office. Moody welcomed us out that there is a bible in each desk that is
Randy Bowling We found that getting around Austin is and sat down with our captains Bobby and marked by each of the reps who sat at that
Bobby Bowling IV challenging and sometimes pricey due to this Randy Bowling as Bobby IV led the desk with their favorite bible verses. Lots of
Gus Loy citys ban on Uber and Lyft the standard conversation on the TAB agendas and our photos later we had to leave the chamber
Laura Loy bearers of off taxi car sharing. Taxis were hopes for the El Paso area. Representative and head back to the Driskill for the reception
Margaret Adauto easily found but they are also keen on taking Moody took the information packet and gave for our delegation and staff.
Ray Adauto you off the most direct path unless you us thanks for the time we spent with him. All in all the day was full, lots of walking
and from Austin joining us for the visit was remind them. A short rest and then it was off The El Paso Contingent, dressed in white and lots of climbing stairs. It was fast and
Alexis Adauto Ferguson, from Cedar Park to our Thank You for attending dinner. This shirts with the new EPAB logo stitched on furious but fruitful.
and Ruth Rivera, our new retirement agent event was held at the Capital Grille, one of them were easily identifiable. It also allowed With our thanks to those who made the trip
who lives in Round Rock. Austins nicest steak houses and located our twenty two to look like forty two as we or joined us in Austin.
The visit was coordinated over the last few within walking distance of our hotel the jammed office after office and hallway after
months and scheduling appointments with Driskill. Dinner was hosted by Morrison hallway. Our next visit really told that story
each of our five state Representatives and Supply, HUB International and Passage best.
2 Builders Outlook 2017 Issue 2

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2017 Issue 2
Presidents
Message
Engagement - The act of engaging;
an encounter, conflict, or battle;
involvement. At the national level,
NAHB has been engaged with
president Trumps team and given ideas
and recommendations as they relate to
housing. NAHB is emphasizing to the
public officials that a healthy residential
construction industry benefits
homeowners, homebuilders, material
suppliers and communities. ln addition,
NAHB will continue to stress how
housing friendly policies will keep the
overall economy on an upward
trajectory. This is a great start, but
NAHB must keep up the communication
and momentum. Engagement with
congress is also vital. The message
needs to be that overly burdensome
regulations are adding to the cost of a
home and pushing homeownership out
of reach for many deserving families.
Closer to home was our recent Rally
Day at the state capital in Austin.
Approximately 20 members from our
local association made the journey on
Wednesday, February 22nd, to meet
with and share our concerns on
legislative bills for this year. The
legislators that our association met with
were the following: senator Jose
Rodriguez and Representatives Mary
Gonzalez, Lina Ortega, Cesar Blanco,
Joe Moody and Joe Pickett, all
Builders Outlook
Don
Rassette
President,
El Paso Association
of Builders
representing the El Paso area. Almost
overwhelmingly, was the favorable
reception from each legislator, at the
number and professionalism of our
group. To each one of our area
legislators we THANK YOU for
working towards the best interests of
the El Paso area. With each legislator,
our association presented the following
2017 Legislative Priorities:
1) Prohibit fees and taxes that are
placed on all new construction in order
to subsidize housing for the few (1.E.
Linkage Fees).
2) Strengthen Vested Property Rights
by reestablishing the commonly held
notion that court costs and attorney
fees are available to both sides in
Vested Rights action.
3) Support Legislation that protects
Texans from unreasonable regulations
and practices that arbitrarily diminish
the value of private property by
imposing overreaching restrictions or
fees on its reasonable use.
4) oppose any overhaul of the
mechanic's lien system that will
significantly harm the construction and
real estate market as a whole.
5) Oppose changes that would create
lengthy requirements and barriers
before landowners can be granted
releases from Certificate of
Convenience and Necessity (CCNs). 6)
Members encouraged to engage
Oppose measures that will have the
unintended consequences of limiting
the ability of Municipal Utility Districts
(MUDs) to cost effectively finance much
needed housing infrastructure. Each
one of these priorities has the goal to
keep housing affordable! For the El
Paso Association of Builders delegation
numbering 20 strong, THANK YOU, for
your engagement.
Real close to home EPAB will be
engaged in the upcoming local
elections. As an association, we will
take similar stances, as prioritized
above and as it pertains to personal
elected official's whims, to keep the
local housing affordable for the many. lf
you havent already, I encourage you to
donate to our local BUILD Pac fund so
we can contribute to candidates'
campaigns, that our association decides
to endorse. ln addition, this is also one
of our yearly goals, as stated in my
January Outlook column.
From the national level, state level,
and at the local level pertaining to
legislation, it is quite apparent that
thousands of dollars are saved by our
political caucuses working for us, to
maintain affordable housing. When you
wander or someone asks about our
associations value, to us as members,
please engage with them and discuss
with them all of the above and how
3
much it could impact higher housing
prices that could disqualify many
deserving families.
Switching topics, I would like to
remind everyone of actions taken at the
recent association meetings. First, the
EPAB bylaws have been revised to
create more opportunities for Associate
Members. Thank you to Brad Roe in
reviewing and writing the verbiage
needed for adoption into our bylaws.
Also, committees have been formed to
further our goals on increasing
membership, increasing membership
retainage, a member ambassador
program, a member kit, awards to
recognize excellence within our industry
and to incorporate more education into
our association on a variety of topics.
Thank you to Ted Escobedo and Patrick
Tuttle for ramrodding these areas. Also,
in cooperation with Bukaty Companies
and Ruth Rivera we have an
association sponsored retirement
program which will provide another
value from and for our association and
its members.
lf you haven't already, please engage
to make our association bigger, better
and stronger. ENGAGE-PREPARE TO
SUCCEED
4
Executives
Builders Outlook 2017 Issue 2

Message Rally day is about Legislative Issues and the

Ray Adauto,
Executive
Vice President
EPAB
Every two years the Texas
legislature meets in Austin, a
carryover from the early days of the
Republic when it was a long trek from
outlying parts of the state. The bi-
annual sessions continue today as a
matter of tradition and frankly work
load. It is during session that the
Capitol is inundated with people
seeking to meet and influence their
representatives and Senators on
interest that they have and need to
impart to them. On any given day
during session we see associations,
trade groups, individuals and of
reason why you are a member of EPAB
course other politicians who have only
a few days every two years to
influence the outcome of legislation for
or against them.
The El Paso Association of Builders
goes to ensure that El Pasos new
home building industry is fully
represented with our own particular
set of requests. We join our sister
associations from around Texas who
are there as a Federation to influence
and persuade the legislators to our
agendas, pro or con.
This session the Texas Association
of Builders (TAB) drew up a larger
than normal issues agenda because
the need for doing so is growing and
our industry is under attack. Heres
the top legislative priorities for this
session in no particular order:
Prohibit fees and taxes that are
placed on all new construction in
order to subsidize housing for the few;
Strengthen Vested Property Rights by
reestablishing the commonly held
notion that court costs and attorney
fees are available to both sides in
Vested Rights actions; Support
legislation that protects Texans from
unreasonable regulations and
practices that arbitrarily diminish the
value of private property by imposing
overreaching restrictions or fees on its
reasonable use; Oppose any
overhaul of the mechanics lien
system that will significantly harm the
construction and real estate market as
a whole; oppose changes that would
create lengthy requirements and
barriers before land owners can be
granted releases from Certificates of
Convenience and Necessity (CCNs);
Oppose measure that will have the
unintended consequence of limiting
the ability of Municipal Utility Districts
(MUDs) to cost effectively finance
much needed housing infrastructure.
So in a nutshell your membership is
at the table asking for legislation that
impacts you as a business. These top
priorities are simply the tip of the
iceberg because there are frankly too
many issues trying to poke into your
business every day. Our team of
volunteers, like those who travel to
Austin and Washington, D.C. on our
behalf or the lobby teams in both
those cities are something that you
may never see but know that they are
working for you. This session will
determine our next two years of how
we do business in Texas. Ask those
members who went to Rally Day if
they got a new understanding of what
membership is really about. They can
quickly answer What do I get from
being a member?

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 National
2017 Issue 2
Builder News
NAHB Applauds
President Trump for
Move to Fix Flawed
WOTUS Rule
n President Donald Trump today
honored a campaign promise made to
home builders as he signed an executive
order directing the Environmental
Protection Agency (EPA) and the Army
Corps of Engineers (Corps) to begin the
process of rescinding or revising the
controversial "waters of the United States"
(WOTUS) rule.
When then-candidate Trump spoke at
the National Association of Home Builders
(NAHB) Board of Directors meeting in
Miami in August, he vowed to cut WOTUS
and other burdensome regulations that
drive up the cost of homes for hard-
working Americans. Trump quoted a 2016
NAHB study when he noted that 25
percent of the cost of a home is due to
regulation.
NAHB commends President Trump for
listening to our serious concerns about the
flawed WOTUS rule that goes so far as to
regulate man-made ditches and isolated
ponds on private property, said NAHB
Chairman Granger MacDonald, a home
builder and developer from Kerrville,
Texas, who was present for the signing of
the executive order today. This is an
important first step toward reworking the
flawed regulation and moving toward a
more sensible WOTUS rule.
The rule has also been legally
challenged by more than 30 states and
numerous environmental groups on both
BUILDING
Builders Outlook
procedural and substantive grounds.
NAHB has led the effort to address
industry concerns with the 2015 rule on the
regulatory, legislative and judicial fronts.
The executive order provides direction to
EPA and the Corps to reconsider the rule
that dramatically extended the areas in
which home builders are required to get
permits, blatantly usurping state and local
regulatory authority. Two courts have
already ruled that it is likely that the rule is
illegal and have issued a temporary halt to
its implementation.
NAHB looks forward to working with the
Administration, EPA Administrator Scott
Pruitt and the Assistant Secretary of the
Army for Civil Works, when approved, to
develop a common-sense solution to
protecting our nation's waterways while
taking into account the interests of local
businesses and communities nationwide,
MacDonald said.
Apartment and
Condominium Market
Keeps Momentum Going
n The Multifamily Production Index
(MPI), released today by the National
Association of Home Builders (NAHB),
posted a gain of two points to 55 in the
fourth quarter. The MPI has been at 50 or
above for five straight years.
The MPI measures builder and
developer sentiment about current
conditions in the apartment and
condominium market on a scale of 0 to
El Pa
aso
100. The index and all of its components
are scaled so that a number above 50
indicates that more respondents report
conditions are improving than report
conditions are getting worse.
The MPI provides a composite measure
of three key elements of the multifamily
housing market: construction of low-rent
units, market-rate rental units and for-sale
units, or condominiums. Low-rent units
remained unchanged at 54 while market-
rate rental units rose one point to 58 and
for-sale units increased three points to 53.
The Multifamily Vacancy Index (MVI),
which measures the multifamily housing
industry's perception of vacancies,
remained unchanged at a reading of 42,
with lower numbers indicating fewer
vacancies. After peaking at 70 in the
second quarter of 2009, the MVI improved
consistently through 2010 and has been
fairly stable since 2011.
Multifamily developers are feeling
optimistic about the market as demand for
SINCE 1950
5
Multifamily
developers are
feeling optimistic
about the market
as demand for
renting remains
robust,
renting remains robust, said Dan
Markson, senior vice president of The NRP
Group in San Antonio, Texas, and
chairman of NAHBs Multifamily Council.
However, regulatory burdens remain a
challenge to the industry, which affect
developers ability to meet this demand.
Given the recent strength of multifamily
starts and permits numbers, it is not
surprising that multifamily developer
sentiment remains positive, said NAHB
Chief Economist Robert Dietz. Our current
forecast calls for multifamily production to
stabilize at a solid rate and stay there
through 2018.
Historically, the MPI and MVI have
performed well as leading indicators of
U.S. Census figures for multifamily starts
and vacancy rates, providing information
on likely movement in the Census figures
one to three quarters in advance.
For data tables on the MPI and MVI, visit
www.nahb.org/mms.
6 Builders Outlook 2017 Issue 2

Expert
Analysis

With Interest Rates So Low,

Should the Deficit be Bigger?
Elliot Eisenberg
Economic & Policy
Blog

The US government can currently
borrow at exceptionally low interest
rates. After considering inflation, the
rates are sometimes zero or even
negative, meaning that the
government is effectively getting paid
to borrow. Under these circumstances
and with GDP growth quite anemic,
isnt the case for increased borrowing
overwhelming? After all, the benefit of
public investment in roads and bridges
must surely be greater than zero,
right? Maybe not!
If the economy were operating
substantially below its potential -- if the
unemployment rate were high -- the
case for borrowing more and running
larger budget deficits would be strong.
The added stimulus from the increase
in government spending would boost
household incomes, which would
increase aggregate demand and bring
the economy closer to its full potential.
That is why governments tend to run
large deficits during recessions and
why there are many counter cyclical
up as the economy weakens.
However, at present, the US
economy is operating close to full
capacity. The unemployment rate is
almost the best in ten years, wages
are rising faster than they have in
years, and inflation, while still low, is
clearly picking up. That said, GDP
growth remains anemic at just 2%.
Wouldnt more stimulus boost GDP?
Probably not. At this point in the cycle,
more stimulus would not create much
more output. Rather, it would primarily
create wage inflation, as too many
firms looking to grow would chase too
few workers, and, in the process, drive
up wage growth and inflation, since
firms would attempt to pass their
higher costs of production to buyers.
To avoid this destructive inflationary
spiral, the Fed would raise interest
rates. The rise in rates would depress
private investment, which would allow
for non-inflationary increased public
investment. However, it should now
be obvious that the cost of the
reduction in private sector investment.
Thus, the opportunity cost of the public
investment is not the very low interest
rate paid on government bonds; it is,
rather, the loss of productivity of the
private investment that would never be
built, such as a new factory or
warehouse. And the productivity of
that private investment is certainly
higher than the interest rate on
government bonds!
The only case, at present, for
deliberately overheating the US
economy is if you believe more
stimulus can undo some of the long
run damage sustained by the economy
during the Great Recession. The idea
is that by artificially and temporarily
pushing the unemployment rate way
down, some discouraged workers
might be enticed back into the labor
force. Similarly, as firms find it harder
to hire enough new workers, firms
might offer existing workers more
hours or convert part-time positions
into permanent ones. Firms might
investing in workforce training or new
equipment.
While weak GDP growth is a
problem, simply running large deficits
to stimulate the economy because
interest rates are low is unwise given
how low the unemployment rate
already is. That said, there is a strong
argument to be made for a short-term
increase in the deficit designed to
bring previously discouraged workers
who left during the Great Recession
and have yet to return. Lastly, rather
than a simple tax cut, if deficit
spending is carefully targeted to public
investment that boosts the productive
capacity of the economy, it would bring
long lasting benefits to the economy
that we would enjoy for decades -- not
just today.
Elliot Eisenberg, Ph.D. is President of
GraphsandLaughs, LLC and can be reached at
Elliot@graphsandlaughs.net. His daily 70 word
economics and policy blog can be seen at
www.econ70.com.

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2017 Issue 2 Builders Outlook 7

Inside:
RALLY A guide to the legislative
issues that were brought

DAY 17
20 to the table by the Texas
Associationof Builders and
your local EPAB Members.
Builders Outlook
SpecialSection

thank you to our

dinner hosts:
Morrison Supply;
HUB International;
Passage Supply

Top picture. Group with Representative Joe Moody.

Edmundo Dena; inside Rep. Blanco office; Randy Bowling holds
up #1 HOMEPAC Award
Bottom right Meeting with Rep. Lina Ortega
2017 Issue 2
10_Outlook_p10.qxp_06_Outlook_p06 3/3/17 1:51 PM Page 1

10 Builders Outlook 2017 Issue 2

Lending Institutions surveyed about mortgage rates

Results from a survey administered by

the Federal Housing Finance Agency
(FHFA) indicate that mortgage rates rose in
January 2017*. Over the month, contract
rates on mortgages used to purchase
single-family newly constructed homes
increased by 24 basis points to 4.02
percent. Although the monthly change
reported by FHFA contrasted with a report
by Freddie Mac, the results of the two
surveys largely move in tandem with each
other.
The fourth quarter iteration of Fannie
Maes Mortgage Lender Sentiment Survey
found that over the next 3 months, the first
quarter of 2017, a small percentage of
lenders expect demand for GSE-eligible
mortgages to purchase a home to go
down, partly in response to higher rates**.
However, the result across all respondents
masks differences by lender size. On net,
large and mid-sized institutions expect
demand for GSE-eligible mortgages for a
home purchase to decline while smaller
institutions expect demand to go up over
the first quarter***. The net percentage is
the difference between the percentage of
originators that believe demand will go up
and the share expecting that demand will
sales contracts rose by 3.7 percent in terms and conditions on all single-family, customers whose 2015 total industry loan
go down.
January following a soft December reading. fully amortized, purchase-money, nonfarm origination volume was in the top 15%
The Mortgage Lender Sentiment Survey
Also, sales of existing homes, both single- loans that they close during the last five (above $631 million). Mid-sized Institutions
follows up with those respondents that
family and condos/co-ops, increased by 3.3 business days of the month. The survey Fannie Maes customers whose 2015
expect demand to fall in the first quarter
percent in January, reaching the fastest excludes FHA-insured and VA-guaranteed total industry loan origination volume was
with a question about the reason
pace since February 2007. However, the loans, multifamily loans, mobile home in the next 20% (16%- 35%) (between
underlying this belief
National Association of Realtors Pending loans, and loans created by refinancing $176 million to $631 million). Smaller
One-half or more of large institutions and
Home Sales Index (PHSI), a forward- another mortgage. Institutions Fannie Maes customers whose
mid-sized institutions believe demand will
looking indicator based on signed contracts Specifically, the question is Over the 2015 total industry loan origination volume
go down because mortgage rates are not
of existing homes, fell by 2.8 percent in next three months, apart from normal was in the bottom 65% (less than $176
favorable, the most cited reason. In
January to its lowest level in a year. seasonal variation, do you expect your million).
contrast, 30 percent of small institutions
Results from the PHSI suggest some firms consumer demand for single-family
hold the same expectation, equal to the
softness in sales of existing homes over purchase mortgages to go up, go down, or
percent of small institutions that have
the next month or two. stay the same? Emphasis included by the
inventory and broader economic
To conduct this survey, FHFA asks a survey.
concerns.Despite higher rates, new home
sample of mortgage lenders to report the Larger Institutions Fannie Maes
2017 Issue 2 Builders Outlook 11
Trump to NAHB Chairman:
Were Going to Make Home
Building Great Again new h o m e s
NAHB Chairman Granger MacDonald
had an important message for President
Trump on Tuesday. And Trump had a very
for el paso...
positive message for home builders.
MacDonald, who was in Washington, s il y f o u n d h e re
D.C. for the week to attend meetings on
ea
Capitol Hill, had just been invited to the
White House to attend a ceremony in which
February 2017

Trump would sign an executive order

FREE

el paso

directing the Environmental Protection

builders

Introducing
Agency and the U.S. Army Corps of
Engineers to begin rolling back the
controversial waters of the United States
El Paso New
Vice President Mike Pence (left) extends
rule.
a friendly hand to Granger MacDonald.
I looked right at him and I said, When Home Builders
you talked to our board in August, you
promised that you would fix this. On behalf conversation with EPA Administrator Scott
of our 140,000 members, thank you. And Pruitt. It was a good, long visit, magazine & website
he said to me, I bet you thought it would be MacDonald said, in which he emphasized
at the end of four years and not right away, builders respect for the environment, but
also the need for cost-effective, common-
...
more information

right? Were going to make home building

oMoves.com for
Visit www.ElPas

great again.' sense regulation that does not hurt small

MacDonald is glad he spoke up. When
you only get five or 10 seconds to say
something, when you see the opportunity,
youve got to run at it as straight as you
can, he said.
The ceremony also gave MacDonald an
opportunity to talk to Vice President Mike
Pence, who as governor of Indiana had
productive relationships with members of
the Indiana Builders Association. The vice
president is a very common-sense
individual, and he is definitely a friend of
home building, MacDonald said.
businesses or curb economic growth.
Part of Homes of El Paso magazine
These conversations, even brief ones,
speak to the value of NAHB membership,
Mailed monthly to thousands of local homes
MacDonald said. When the president says
hes going to make home building great
El Paso Airport distribution
again, thats important.
We are at the White House within the
Stand alone magazine each quarter
first 40 days of this administration, he
pointed out. Whether our members support
Call Martha today for more
Trump or not, we are right in the middle of information at (915) 204-7017.
it, where we need to be. You are either at
the table or being served on the menu. We
are at the table.
Another Mesa Publishing Publication, serving El Paso Home

While the group waited for the president

Buyers for 25 years. www.MesaPublishing.com
to arrive, MacDonald struck up a www.ElPasoNewHomeBuilders.com

17thh Annual El Paso

Ma ch 10-12 | El Passo Convention

Mar entio
on Cente
Center
Be a Par t of th
he Biggest Hommee
& Gar den Even nt of the Year!
Year!
Show T Technologys
echnologys El Paso Home & Ga
Gar
arden Show is the biggest event of its kind this
yearr. Dont
D t miss
i your chance
h to
t exhibit
hibit and
d reach
h th
thousands
ds off potential customers.
Be among El Pasos finest builders and remodelers
Get quality leads from attendees who pay to see yo
Great Gardens & Outdoor Living
Appliances, Home T Technology
echnology & Security
Furniture, Interior Design & Home Accessories CELE
EBRITY APPEARANCE
ARANCE
Seee webs
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site for appearance schedules
Texan Product
An Ar t, Gif t & Gourmet Area with Go Te
DIY Seminars All Weekend Wayd
de King & Brettt Raymer
So much to see and do in one day, attendees
pay once and come back all weekend! Staar of Animal
S A Planets Taanked

To become an exhibitor, contact Pam Rogers at (210) 408-0998 orr pam@showtechnolog

nolog y.com
12 Builders Outlook 2017 Issue 2

Thankyou to the following builder and associate member for

renewing your 2017 EPAB Membership. Rememebr to please do
EPAB
Membership buinsess with fellow members.

Builder members Palo Verde Homes Thomas Brown Jorge Martinez

as of March 1, 2017 Edgar Montiel Cognent, Inc. Mechanical Technologies
Pointe Homes Martin Paredes Jaime Zubiate
AT Architectural Designs Carlos Villalobos Conde, Inc. Morrison Supply
Elsa Taracena Porter Homes Conrad Conde Sam Shallenberger
Accent Homes Albert Porter CQC Testing and Engineering, LLC MTI Ready Mix, Inc.
Mark Dyer/Raul Chavez R.C. Baeza & Associates Jaime Rojas Tony Mullen
Bain Construction Robert C. Baeza Dal-Tile Neeuhome.com LLC
Scott Bain R.E. Welch Contractor Joseph Cepeda Walter Pichardo
Bella Homes Gordon Welch Demcon Disposal Management, LLC New Era Foam
Leti Navarrete Rassette Homes, Inc. Aby Escorza George Tollen
Bella Vista Custom Homes, Inc. Donald Rassette Dempsey, Cooper & Lane, LLC Passage Supply
Edgar Garcia Santana Custom Homes Richard T. Dempsey John Chaney
BIC Homes Fernando Santana Dorney Security Patriot Mortgage
Antonio Cervantes Southwest Land Development Serv. John Dorney Randy Bowling
Carefree Homes Doug Schwartz DWS Building Supply Pella Windows
Richard Aguilar The Heritage Group Sabrina Voorhies Jason Bates
Casas De Leon, LLC David Bingham E.F. Building Materials, Inc. Performance Glass & Aluminum
Nick Bombach Trejo Construction Co. Efren Fraire Hector Hernandez
Classic American Homes Juan Trejo Eagle Roofing Products Pioneer Bank
Priscilla Hernandez Tropicana Building Corp. Scott Aguilar Kathy Carrillo
Crown Heritage Homes Bobby Bowling IV El Paso Building Materials Powerfoam Insulation:
Lydia Mlouhi Tropicana Development Ken Wade Metlspan NCI Group, Inc.
Cullers & Caldwell Builders Greg Bowling El Paso Disposal Arnie Pederson
John Cullers Tropicana Homes Irma Parsons Randall Smith, CPA
Cullers Homes Randy Bowling El Paso Mortgage Bankers Association Randall Smith
Jason R. Cullers Tropicana Properties Randi Cabrera Real Estate Weekly Newspaper
Custom Dream Homes Demetrio Jimenez El Paso Times Riley Stephens
Leti & Javier Navarrete Villagi Homes, LLC Jose Molina Rebath of El Paso/Las Cruces
D. R. Horton Homes Kristi Eddings El Paso Truss Lisa Walling
Jaime Gonzalez Will Harvey Development Luis Mendiola Remcon Self Storage
Dawco Home Builders Will S. Harvey El Paso Winnelson Joan Swahlen
Walter O. Lujan Winton/Flair Homes Rene Goldfien Richman Group Affordable Housing Corp.
Deal-2-Deal Homes Herschel Stringfield Ferguson Enterprises Inc. Kevin Hoffman
dba Deal-2-Deal,LLC Albert Holguin Rocky Mountain Mortgage Company
Delton Deal Associate Members First Light Federal Credit Union Dean Inniss
Del Rio Engineering, Inc. Lorenzo Revelez Roe, Brad
as of March 1, 2017
Sal Masoud Firth, Johnston, Bunn & Kerr Bradley Roe
Diamond Homes, LLC Jay Kerr Sarabias Blue Sanitation
84 Lumber Foxworth Galbraith Lumber Monica Brown
Valerie Baquera Ernie Chavez
Donald Ward Builder, Inc. Bret Thompson Senercon
ABC Supply Co., Inc. Franklin Building Materials Javier Ruiz
Donald Ward Larry Eck
E. Valencia Land Development LLC Ricardo Aguilar; Cristina Sheldon Sherwin Williams Paint
Acme Brick Company GCC Sun City Materials, LLC Cruz Lopez
Eddie Valencia Vanessa Rocha; Steve Bush
Edward's Homes, Inc. Victor Tito Marquez Sierra Title Company/Lawyers Title
Adams Moulding & Lumber GECU- Greater El Paso Credit Union Chris Morales; Angelique Roman
Eduardo Fernandez Tom Swahlen
EPT Land Communities Brenda Aguirre Simpson Strong-Tie Company, Inc.
Area Iron & Steel Works, Inc. GEPAR-Greater El Paso Ken Donham
David Bogas Fred L. Edmonston Jr.
Everest Homes Assoc. of Realtors Snappy Publishing, LLC
Atrium Homes Sharron Ramirez Ted Escobedo
Edmundo Dena, Jr. Ricardo Bocardo Jr.
Fortune Custom Homes Hardware Specialties Solar Smart Living
Bank of Texas Jeff R. Paxton Larry Perea
Javier Andrade Ray Owen
Gaddy Construction Harris Real Estate Group Southwest Dcor El Paso Corporation
Barnett & Bennett Construction Lane Harris Chris Matthews
Charles Gaddy Ben Trzyna
GMF Custom Homes, LP Haskins Electric Spectrum Technologies
Baron Supply Charles B. Haskins, Jr. Miled Daou
Frank Torres David Trammell
Guel Construction Home of Texas Stewart Title of El Paso
Barragan & Associates Mark Smiley Cindy Bilbe
Rudy Guel Benito Barragan
Hakes Brothers LLC Home Performance Testing StrucSure Home Warranty
Beasley, Mitchell & Co., LLP Fernando Garcia/Ray Gonzales Scott Whisenant
Chris Hakes Brad Beasley
Hanson Asset Management, LP HUB International Su Casa Magazine
BMC Select Luis Rosas Bob Skolnick
Russell Hanson Jaeson Iovinella
Homes by Design Interceramic Tile & Stone Gallery Sun City Winnelson
Boise Cascade David Holguin Dean Moore
Leslie Driggers Hoard Mike Flores
Hunt Communities, LLC J & H Concrete & Post Tension Texas Gas Services
Bonded Builders Home Warranty Grp. Jorge Herrera Mica Short
Kathy Parry Bill Deal
Icon Custom Home Builder, LLC. James L. Ellis, CPA, PC Texas Title Company
Border Solar Jim Ellis Steve Raney
Carlos Garcia Javier Ruiz
Industrial Realty Group Incorporated Jobe Materials, LP TFCU
Builders Source Appliance Gallery Charlie Tellez Yolie Melendez-Estrada
Brent D. Harris Kathy Rose, Sandra Lucero
JER Custom Homes, LLC Joe Bernal Insurance The Dorian Group/Ocean Gallery USA
C. D. Lee/Britton Insurance & Bonding & Financial Services, Inc. Miguel Angel Mercado
Jorge E. Rodriguez Anthony Landavazo; Lisa Daniels
Kayton Lee Residential, Inc. Joe M. Bernal TRE & Associates
Cabinet Masters L & P Building Supply Linda Troncoso
Brianna Barnes Mike Robles
LMJ Construction Co., LLC Denise McConnell Trim Team
Capital Bank, SSB Legacy Real Estate Services Juan & Kris Hernandez
Mike Lopez David Ortwein
Loyalty Homes /TTi Prop. Management. USA General Contractors
Cardel Design Group Patrick Tuttle Javier Olmos
Gustavo Loy Lorraine Huit
M A Builders & Design, LLC Lone Star Title Co. of El Paso Vision Consultants, Inc.
Casa Ford & Casa Nissan Sam Trimble Kelly Sorenson
Mustafa Ali Luke Lowenfield
Metro Homes, Inc. Love Engineering, Inc. WestStar Home Loans
CEA Engineering Group Montez Love Sandy Matyi
Fernando Torres, Judith Arrunada, Jorge L. Azcarate
Millennium Homes Majestic Realtors WestStar Bank
Central Texas Metal Patti Musshorn David Osborn
Dan Ruth Roofing Supply Co.,Inc.
New Horizon Builders MAK Roofing & Construction WestStar Title
Ben Garza, III Felix Vizarreta Janette Coon
Georgiana Garcia Chaparral Materials, Inc.
Pacifica Homes, Inc. Masco Contract Services
Kevin Fortin dba Gale Insulation
Juan Jose Vasquez City Bank Texas
Palace Homes, Inc. Tom Harmon
Bob Kotarski McCoy's Building Supplies
Robert Diaz City Lights
 13
Association
2017 Issue 2 Builders Outlook

If you have an event or meeting that you would like to share with
News & Events
EPAB members, please submit your information to:
margaret1@elpasobuilders.com

Connect to the El Paso

Association of Builders:
www.elpasobuilders.com

UPCOMING
EVENTS NEW MEMBERS
Congratulations on your 70th Anniversary.
MARCH 8 KAYTON LEE We were here when you started back in
BOARD MEETING RESIDENTIAL, INC.
CONTACT:
12 NOON








BRIANNA BARNES
EPAB OFFICE 10921 PELLICANO DR.,












STE. #108
MARCH 10-12 EL PASO, TEXAS 79935
HOME & GARDEN 915-730-4747
SHOW
BARNETT & BENNETT
CONVENTION
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WASHER EL PASO, TEXAS 79902
ACME BRICK CO. 325 N. Americas Ave. El Paso, Texas 79907 915-859-9171

TOURNAMENT 915-543-9300
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14 Builders Outlook
ExpertAdvice Fiduciary Considerations:
Why should Plan Fiduciaries consider using an adviser?
Editors note. The El Paso Association of
Builders has put in place a retirement
program we call Blue Print. Our
partnership with Bukaty Companies
Financial Services and Ruth Rivera will
be presenting articles of interest in the
topic of retirement on a regular basis. In
addition Ms. Rivera will be visiting
members to discuss your particular
needs. To participate in the Program
requires membership in the El Paso
Association of Builders.
Economics is the study of the
allocation of scarce resources.
Businesses are naturally constrained
by time and money. Advice, implicitly,
cost money. We live in a world
where there is an abundance of do-
it-yourself solutions ranging from
home repairs to Legal Zoom. So a
business that spends money on
advice necessarily has less money
for other capital expenditures. In the
case of Plan level advice, what are
the potential cost savings that a
Fiduciary might want to consider if
any?
The following is a short list of
considerations for the Plans
Fiduciaries:
1. Help Reduce Fiduciary Liability:
ERISA requires the Fiduciary of
the defined contribution retirement
plan (Trustee or Fiduciary) to be a
prudent expert and to use the
care, skill, prudence and
diligence that someone familiar
with such matters would act, or if
not possessing such expertise, to
hire someone that does possess
such skill and can act in such and
expert manner. So, ERISA
presumes that plan fiduciaries
possess an uncommon level of
expertise or to at least find and
hire someone with that skill-set.
This is not optional, it is an ERISA
mandate.
2. Leverage Industry knowledge:
There are many investment and
record keeping options available
to defined contribution plans. An
experienced adviser with
extensive experience, can assist
the Trustee or Fiduciary in
evaluation the various options,
establishing the selection criteria,
and choosing the platform.
3. Investment monitoring: A prudent
investment Fiduciary would not
ignore the performance of an
investment once it has been
selected. With the assistance of
an adviser the Trustee or
Fiduciary should establish an
Investment Policy Statement that
includes provision for monitoring
2017 Issue 2
the investment performance of the
various mutual funds. Inevitably,
some mutual funds will need to be
replaced due to poor performance
or other reasons such as a
change in the mutual fund
manager. The astute adviser will
be proactive in such matters. The
level of advice can be that of the
3(21) or 3(38) co-Fiduciary.
4. Investment Co-Fiduciary:
Investment co-Fiduciaries
necessarily handle money on
behalf of the Plan participants.
The legal exposure to Plan
Fiduciaries is immense. A 3(21)
investment co-Fiduciary status
with an advisor will mitigate that
risk. Fiduciaries re personally
liable for the operation of the Plan
5. Increase Employee Engagement:
The whole purpose of a Plan is for
the employees to finally retire with
dignity. An experienced
independent adviser will have the
knowledge, communication skills,
and collateral material necessary
to help employees better
understand their investments and
asset allocation in order to drive a
successful retirement outcome.
Successful outcomes should be
measured and approximate of
income replacement rate of 80%.

 

 
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Builders Outlook 2017 Issue 2 El Paso Disposal
6046 Surety Dr. El Paso, TX 79905
915-778-5387 Fax: 915-772-3038
ExECuTiVE OFFiCERS
PRESiDENT
Don Rassette
ViCE PRESiDENT
TABSTATE DiRECTORS
Randy Bowling - Life Director
Sam Shallenberger
Edmundo Dena
772-7495
EdmundoDena
SECRETARY/TREASuRER NATiONAL DiRECTORS
SergioCuartas Bobby Bowling, iV
ASSOCiATES ViCEPRESiDENT Demetrio Jimenez
SamShallenberger Leslie Driggers Hoard -Alternate
ExECuTiVE ViCE PRESiDENT Antonio Cervantes - Alternate
Ray Adauto
PAST PRESiDENT Honorary Life Members
Carlos Villalobos Mark Dyer
Wayne Grinnell
COMMiTTEE CHAiRS Don Henderson
Membership Anna Gill
Ted Escobedo Brad Roe
Patrick Tuttle Rudy Guel

Finance Committee Past Presidents

Kathy Carrillo Committed to Serve
Henry Tinajero Edmundo Dena
Edgar Montiel
ADViSORYTOTHEBOARD Frank Torres
Jay Kerr, Firth, Johnston, Bunn & Kerr

For All Your Electrical Needs

Frank Arroyos
Greg Bowling
BOARDOFDiRECTORS Randy Bowling
Antonio Cervantes BiC Homes Bobby Bowling iv
Bret Thompson Foxworth Galbraith Doug Schwartz
John Cullers

Residential Specialists
Fernando Torres Metro Homes
Henry Tinajero West Star Bank Robert Baeza
Jay Kerr Firth, Johnston,Bunn & Kerr Mark Dyer
Joe Bernal Employer Benefits Ep Kelly Sorenson

Tract Homes Custom Homes

John Chaney Passage Supply Rudy Guel
John Dorney Dorney Security Brad Roe
Kathy Carrillo Pioneer Bank Herschel Stringfield
Kathy Parry Hunt Companies Bob Bowling iii
Leti Navarette Bella Homes/Custom Dream Pat Woods
Linda Troncoso TRE & Associates
EPAB Mission Statement:
Leslie Driggers-Hoard Homes By Design
The El Paso Association of Builders is a federated professional
Robert Foster Southwest Land Dev. Services organization representing the home building industry,
Walter Lujan Dawco Builders committed to enhancing the quality of life in our community by
Edgar Garcia Bella Vista Custom Homes providing affordable homes of excellence and value.
Jason Cullers Cullers Homes The El Paso Association of Builders is a 501C(6) trade
Samira Gonzaelz icon Custom Homes organization.

915-208-9313
Sal Masoud DRE Development 2017 Builders Outlook is published and distributed for
the
Ted Escobedo Snappy Publishing

Total Customer
El Paso Association of Builders

800-853-3996
Patrick Tuttle Legacy Real Estate Services by Ted Escobedo, Snappy Publishing, LLC
Sam Trimble Lone Star Title ted@snappypublishing.com

Satisfaction
Luis Rosas Hub international El Paso Texas 915-820-2800
Delton Deal Deal -2-Deal Homes
J. J. Vasquez Pacifica Homes

2016 Builder Member Of The Year 2016 Associate Of The Year

Carlos Villalobos StrucSure Home Warranty

Pointe Homes

ome
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