The goal of any affordable housing developer is to provide housing opportunities for families, seniors, and veterans at the bottom of the economic ladder. This session will provide an overview from experienced developers, including how to nail down the concept, inspect feasibility, assemble the money, cement construction, and deliver qualified renters or homebuyers.

1. Affordable Housing Development
Housing Rehabilitation
National Rural Housing Conference 2012

2. Types of Rehabilitation
Owner Occupied
Contractor
Self-Help
Acquisition Rehab
Sawyer Street Project

3. Before Rehab…

4. After Rehab…

5. Case Studies
 Self-Help Home Improvement Project (SHHIP)
 Campesinos Sin Fronteras
 Northern Rocky Mountain RC & D
 Homes First!

6. SHHIP
 Location- Redding , California
 TA Costs - $8,250
 Equivalent Unit Calculation
 Paid on draw system determined with RD based on progress
 TA per unit is averaged over total # of units
 Some jobs will be $7,500 jobs and others $40K jobs
 Construction Funding – Need based
 Leveraging multi-funding sources including Pacific Gas &
Electric, Weatherization program, CDBG, RD-HPG 533, Dept of
Energy, LIHEAP, RD 504 Loans & Grants
 Sweat Equity
 65% of the labor done by families
 Comparable Cost Savings
 Computer software, “National Home Improvement Estimator”
uses union carpenter wages to determine comparable
contractor costs

7. Campesinos Sin Fronteras
 Location- Somerton, Arizona
 TA Costs $6,818.18 per unit
 Equivalent Unit Calculation
 Negotiated price with RD, less than new construction per
unit cost
 Construction Funding
 CDBG, HOME, RD 306c loans and grants (Colonias areas),
504 loans and grants (mostly grants), & RD 533 Housing
Preservation Grant (HPG) funds.
 Sweat Equity
 Focused on the COST savings not the labor %
 Comparable cost savings
 Contractor quote or rehab specialist estimate
 Compare to contractor’s bids excluding family labor

8. Campesinos rehab BEFORE

9. Campesinos rehab AFTER

10. Northern Rocky Mountain RC&D
 Location- Bozeman, Montana
 TA Costs - $5,246.10
 Paid as .10 Loan Application, .30 Home Audit, .10 Loan Closing &
.50 Job Completion
 Equivalent Unit Calculation
 Based on other Rehab program model using average costs
 Construction Funding
 RD 533 Housing Preservation Grant, HOME funds, RD 504 Grants
(minimal 504 loans)
 Sweat Equity
 Family contribution & volunteer time calculated at $10 per hour/
Professional fee $50 per hour
 Comparable cost savings
 Actual contractor bids and Rehab specialist estimates

11. Northern Rocky Mountain RC&D
BEFORE

12. Northern Rocky Mountain RC&D
AFTER

13. BEFORE…

14. AFTER…

15. Homes First!
 Community Housing Development Organization (CHDO)
 26 Structures and 46 Units
 Sawyer Street
 Partnership with Kokua
 HUD home
 Funding
 Pro Forma
 Volunteers

16. Before

17. After

18. For more information
Contact:
Billie Heath
Rural Community Assistance Corporation
bheath@rcac.org
(360) 493-2260 or (360) 970-4093