Any Experienced Affordable Housing Builders Here?

Comments(4)

• 
  GFous28th November, 2003

  Pre sales are the name of the game. I build affordable owner occupied housing in SW Florida. I needed 20 % of my A nd D and 0% of my construction costs. But I still had to have the seed money (money that the bank has let me borrow back.)
  
  Free plans? As I friend once told me - don't bend over to pick up nickles when you are on the way to pick up 100 dollar bills. Don't sweat this amount - if you want to save some money - build something that some one else already has. The architect will charge you less. You still need someone to certify your plans and do inspections anyway . Your plans may only cost you about $30,000.
  
  There is grant money for affordable housing but with the 80/100 loan package they are not worth the effort.
  
  My affordable housing ( hate the term, by the way) sells for $131,00 per unit. This with a land cost of $5500/unit.
  
  
  How many units are you building?
  
  
  Gregg
  _________________
  Gregg Fous
  Investor/Developer
  
  "Developers Make it Happen"[ Edited by joel on Date 11/29/2003 ]

• 
  Zach28th November, 2003

  Gregg, did you just say that plans cost 30k??????? Or it that including your 20% down? Please clarify! Z[ Edited by Zach on Date 11/28/2003 ]

• 
  29th November, 2003

  I've built in Washington State and had a great Design Company I worked with but I'm starting over again here in California.
  
  I used to pay about $250-$350 per plan. I hope to work with groups that believe in the same concept. "That you can make a profit and still help families afford a decent place to live." I talked with the Public Housing Agency out here and the list of Working famiies waiting just to rent an afforable home is backlogged well into the thousands!! So i'm looking to tie into resources that can help save money along the way. I don't mind paying for services but if there are resources out there I'd like to know about them. There's a huge need ....
  
  My goal is to build SFR on Lots in Desert Hot SPrings, where land only goes for about $5K -12K per Lot BEFORE the Big Guys come in. They're already starting to buy up groups of lots and the prices are beginning to escalate. So every $ Counts.
  
  So any help to direct me to reduced cost, free, etc plans, consulting, low interest loans, grants,etc would be great.

• 
  GFous29th November, 2003

  I think my total architect bill was actually $37,000. This is for 56 units, site plan, inspections, mech and structural engineering for the plans. ( Comes to $660/unit)
  
  I will pay a repeat fee on the next development if I use the same 12 plex
  
  The archtitects fees are part of A and D.
  
  Let me be a bit clearer.
  
  Say your land cost is $500,000. You soft costs ( Archtiect, engineers, development fee. environmental, etc) are $100,000. You vertical is $1,400,000. Total cost of project is $2,000,000. You need to come up with 20% of the $600,000, or $120,000 IF you have 50% presales.
  Chalenge will be 1. Presales and 2. you will be out of pocket for much more than that $120,000 unitl you reach your presale number.
  Gregg
  
  _________________
  Gregg Fous
  Investor/Developer
  
  "Developers Make it Happen"[ Edited by GFous on Date 11/29/2003 ]