Accessible and affordable housing for existing and prospective workforce housing is a challenge nationwide. Lack of housing presents challenges to communities and regions that are hoping to attract new businesses and industries, not to mention meeting the needs of current residents. During this session you will learn about successful approaches to creating housing opportunities from across the Austin region.
Affordable and Accessible Housing: Imperative for Strong Economies
1. M i c h a e l R y b u r n , D e p u t y E x e c u t i v e D i r e c t o r
South Western Oklahoma Development Authority
Development
& Community Improvement
Housing
2. Why invest in Housing? This was a breakdown of SWODA’s revenue sources
South Western Oklahoma Development Authority
7. The South Western Oklahoma Development
Authority (SWODA) recently held a ribbon
cutting to celebrate the completion of two
new homes in Thomas. The new homes are
the third and fourth homes that SWODA
has developed in Thomas. SWODA worked
with the City of Thomas and Thomas
Economic Development Authority (TEDA) to
acquire lots for the homes. SWODA's
housing program began in 2013 in response
to the lack of quality, moderately priced
homes in Southwest Oklahoma. "SWODA
is trying to make a difference in the
community by addressing some of the need
for new housing and helping continue the
strong economic development efforts of
the City and TEDA. Thomas has made great
strides in recent years and SWODA is proud
to work by their side" said Debora Glasgow,
SWODA's Executive Director.
Both of the new homes are under contracts
with buyers and SWODA plans to begin
construction on two additional homes in
coming months.
8.
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12. MICHAEL RYBURN
Deputy Executive Director
Director of Business Development
Direct: 580-562-5031
Mobile: 580-774-2693
Email: michael@swoda.org
420 Sooner Drive
PO Box 569
Burns Flat, OK 73624
http://www.swoda.org
13. South Central Regional Affordable
Community Housing
(SCRACH)
John Boudreaux
Regional Revitalization Manager
14. Long-term Goal
●Build a program to construct Sustainable &
Affordable Housing Units in South Louisiana
Coastal Zone
Coastal and Flood Zones
Affordable
●Work with our Government Partners to revitalize
neighborhoods
15. Citizen Wishes
●Affordability, to include cost for Homeowner and Flood Insurance
●Work with Local, State and Federal Partners to assist citizens with
becoming Homeowners.
• Office of Community Development
• GOHSEP
• Louisiana Housing Corporation
• USDA
• HUD
• EPA
• Parish & Municipal Governments
• Housing Departments
• Banks
• Insurance Companies
16. Customer Needs
• Affordable Housing
• Assistance with Loans
• Assistance with Insurance
• Low Maintenance Unit
• Storm Ready
• Energy Efficient
• Fortified
17. Program Analysis
●Use technology to improve strength and
sustainability
●Construct with products that are cutting edge
●Use designs that are more durable
●Build to exceed Code Compliance
19. Planning
●Develop an organization to oversee the goals and
objectives
●Conduct field work to identify potential locations of sites
●Work with Parishes and Municipalities to identify
possible sites
●Build relationships with vendors and trades
●Do Public Awareness to inform individuals
●Organize through Bid Prep
20. Next Steps of Action
●Continue to develop Operational Plans
Responsibilities & Management
Safety
Purchasing & Procurement
Compliance
●Think Tanks & Coordination
●Collectively working with everyone to accomplish
goals and objectives
21. Closing
People do not decide to become
extraordinary.
They decide to accomplish
extraordinary things!!!
Leading up to 2010 we had internal discussions about housing needs and the difficulty of federal housing programs and the perception of “Low-Income” housing.
2010-2011 Region was experiencing an oil boom and housing was scarce with oil field companies leasing entire hotels for lodging up to 6-months. Man-camps were becoming prevalent and school buses were stopping at hotels to pick up kids.
Desperate need for housing of all kinds.
Meanwhile, SWODA was experiencing a drastic change in our Organization as we lost a major contract with the Air Force and staff was reduced from 82 to 30.
One of the biggest threats to SWODA as an Organization was a financial over-reliance on State and Federal funding. We had local programs and contracts supplying 55% of our revenue but one of those contracts was with the USAF so we really relied on 82% on federal or state sources for funding.
State and Federal governments are reliable payors just not reliable appropriators and work in their best interest with lots of red tape.
SWODA’s workforce and operations were reduced due to the loss of the Air Force contract and maintenance of Clinton-Sherman Airpark. The cash required to support payroll, front expenses, or invest in equipment for those operations is now idle and needs to be reinvested into programs beneficial to the region. To remain financially stable SWODA has attempted to build strong locally funded/supported programs to
mitigate reliance on the Federal and State governments due to recession and reductions in funding. SWODA also needs to invest resources into programs that generate cash flow and return on investment.
We knew we had housing needs.
A positive form the loss of the AF contract and staff was that our investment in cash flow and some of the assets was free to use in other areas of need.
We also knew we didn’t want to just spend one-time money and have a one-time effect so why not create a program where the money can revolve back to us designed like EDA RLF program.
We analyzed the housing markets in our area. We had studies that the state had conducted and took stock of the local markets.
There is a need for new moderate sized, affordable, single-family homes to be constructed within the SWODA region to supply households for the workforce. Housing development (especially speculation homes) in the area has been slow or trended towards larger, more expensive homes that are custom built. Additionally, many communities within the region struggle to address substandard or blighted housing.
We developed a business plan for housing development and community improvement and presented the idea to our Board of Trustees.
As with any investment, there is risk in this housing program venture. We may build housing units that are slower to sell, and pricing might have to be reduced to maintain cash flow and continue to invest in the program. We aggressively market properties and believe that our cost savings from our construction approach allows us margin to mitigate losses.
Even if we are forced to sell homes at cost or slightly below, we believe the positives from the new construction far outweigh the minor financial loss.
Schools (60%) and Counties(40%) receive property taxes.
Counties are SWODA’s beneficiaries of our Trust indenture
We watch the housing market and work with partners to develop potential projects.
We try to get donated or low-cost lots to build upon but will NOT accept every lot.
We tried turn-key construction, but most general contractors in our region do not have the capacity for bonding.
We utilize a construction manager to oversee projects. CM receives 10% of the construction expenses as management fee.
The SWODA Board of Trustees approves projects and budgets and establishes the listing price.
Authorizes Executive Director to negotiate the sale, but not under the cost of construction.
As the housing market changes within the region, we will scale back the program, as necessary. We have completely stopped since COVID and extreme inflation have impacted the market.
We are constantly considering changes in project sizes, square footage, amenities, finishes, etc to control costs and continue to improve the market and address need.
We built and sold 24 houses over a 10-year period. We originally had a much more ambitious goal and want to continue to grow the number. We realize that the housing market constantly changes and can change quickly.
Could not operate the program without community partners.
Good contractors and subs.
Board of Trustees
