Affordable workforce housing accommodates low-earning individuals and families that do not earn enough to 1) purchase a home and 2) afford average traditional workforce housing rental costs says Maxwell Drever. The value of what affordable means may differ from state to state, but the lack of affordable workforce housing is. No matter what, a common problem for millions of Americans.
Unforeseen circumstances created a solution to this problem during the pandemic; however, the timing could not have been better for a nation in need of solutions to the affordable workforce housing crisis.
This gift came in the form of off-brand hotels and motels across the nation that closed due to low occupancy rates. While this was certainly not great news for the hospitality industry, it presented itself to developers as an ingenious solution to the two-headed problem of expensive real estate costs and increasing homelessness.
Workforce House Building Tips
Evaluate the factors carefully.
While many real estate developers believe they can easily repurpose a “broken” hotel, it would be advisable for them to rethink that presumption. With vast experience in these types of conversions, developers such as Maxwell Drever suggest that one should carefully assess their resources and challenges before making such an investment.
Pay Attention to Infrastructure
When converting broken hotels and motels into affordable workforce housing, infrastructure, electrical, drainage, and other essential building services are the first elements to analyze. Following these steps makes it more likely that an affordable workforce housing project will come in on time and under budget.
Consider Hidden Costs
Building affordable workforce housing involves dealing with unforeseen situations, says Maxwell Drever. Examples of this include severe structural and maintenance issues. These hidden costs pose significant financial budgetary risks. That said, it is wise to add a reserve that is a bit higher than usual for projects of this size.
Banks are not your only destination. Today, there are many types of organizations capable of providing financing for affordable workforce housing projects. That said, whatever your source of funds may be. Developers should pay close attention to ensure adequate funds are held in reserve. To meet any emergency before spending the first dollar on their project.
Have a Diverse Team
Working on such a project might be a problem if you do not have the right people. And organizations to help you succeed. So, it is best to plan early and put together a pre-conversion team that helps to make sure. That all elements are in place before construction begins. With these steps complete, it is more likely. That the project has the best opportunity to run without delay once conversion starts.
You will need competitively priced providers, experienced and talented contractors, interior designers, architects, and several other professionals. Thus, try to include experts on your team. Who can help you tackle potential issues with their experiences and skill set.
With preparation, and talented people surrounding you. An affordable workforce housing project should not be more complex than any traditional repurposing project.