I’m a huge fan of churches using their property to produce affordable and workforce housing.
Kudos to these folks for putting their faith in action.
Author Archives: Jeff Carroll
Let the Marketplace Work
Read this headline. Think about what it’s saying. It puts the words “affordable” (i.e., inexpensive and plentiful) in the same sentence with “lottery” (i.e., scarce).
Remember when 72-inch flat-screen TVs were a $10,000 luxury? Now we can select from scores of competing brands for a small fraction of that cost.
How did this happen? Was it the result of a lottery? Government regulation? Limits on new flat-screen TV production and ownership?
No. It was the result of competition.
Let the marketplace work. Deregulate the production of housing and let developers like me reach renters and buyers previously unreached.
From the piece:
“The affordable housing lottery has launched for 200 Montague Street, a 20-story residential building in Brooklyn Heights, Brooklyn. Designed by Beyer Blinder Belle and developed by Aurora Capital Partners, the structure yields 121 residences. Available on NYC Housing Connect are 38 units for residents at 80 to 130 percent of the area median income (AMI), ranging in eligible income from $54,960 to $215,1500.”
Gentrification vs Redevelopment (Revisited)
How is this any different than private investors purchasing dilapidated, unsafe homes and displacing the tenants (i.e., “gentrification”)?
In reality, ANY investment – private or public – which increases the stock of safe, decent housing should be embraced enthusiastically.
Let’s not settle for homeless encampments or squatters in boarded up housing. Discouraging investment to maintain the status quo does nothing to help these people.
Johnston Farms Update: Civil Engineering
Met with the City of Rock Hill this morning to sort out stormwater, sanitary sewer, domestic water, electric, and landscape requirements for Johnston Farms Apartment Homes, our proposed 120-unit workforce housing development.
The city was very accommodating and identified several design changes that will save us hundreds of thousands of dollars in development costs and expedite our approvals.
Many thanks to the city engineers who met with us this morning!
The Perfect Storm
Rising construction & operating costs – along with rising interest rates – were partially offset by significant rent increases for market rate properties in 2022. Many of these deals were salvaged by increased market rents last year.
Not so for affordable multifamily.
Costs and interest rates rose for affordable multifamily, too. But rents – which are tied to household income – increased only modestly in 2022. Because of this, many of these restricted rent deals don’t pencil out.
From the piece:
“The 2023 housing market’s ‘headwinds’ are the same for all homebuilders — high construction costs compounded with high interest rates that have lowered borrowing amounts. But those challenges are especially sharp for affordable housing developers.”
A link to the news piece is found here.
SIPs as Steppingstone to Modular
SIPs and modular both have their place in the market. Indeed, at some point modular manufacturers will begin to use R28 SIPs instead of traditional R13 exterior wall construction.
A link to the news story is found here.
Gentrification vs Redevelopment
This has always puzzled me. When private investment comes to a blighted neighborhood it’s labelled “gentrification” (which is bad, I am told). But when public investment comes, it’s labelled “redevelopment” (which is good, I am told).
Isn’t ANY investment in blighted neighborhoods good? Sure, the people being displaced need a safe/affordable place to live. But the blighted structures they lived in previously weren’t safe.
Isn’t the question we should be asking “What can we do to produce more affordable housing so people don’t have to live in slums?” Saying “Look at those heartless private investors, displacing poor families from blighted, unsafe housing?” seems to miss the point.
A link to the news story is found here.
Workforce Housing Development Strategy
Featured
A brief overview of Tartan Residential’s Workforce Housing Development Initiative:
Energy-Efficient Construction Initiative
Featured
A brief overview of Tartan Residential’s Energy-Efficient Construction Initiative:
Strength of Affordable & Workforce Housing Investments
“It’s critical for investors to understand that affordable housing is a strong and stable investment, one that’s resilient even when the economy isn’t. We have seen gains in the real estate market slowing, yet the affordable housing market remains strong.”
Link to article found here.