Wednesday, February 23, 2011

2 Cents (part 2)

Our Two Cents Worth (part 2)



 
 
 
Shared Ownership Affordable Housing :
Sophisticated Investors use T.I.C.'s as a way to subdivide
ownership of what was the territory of larger investors.
If it were possible to partner Non Profits with small
investors, the FHA discount on Govt. Owned properties
could act as the equity down payment for a shared equity
arrangement.   The property could enter the affordable
housing inventory at below market rents. More study of
FHA programs may find this technique possible.
County Government  suspending  R.E. Taxes  on
 qualifying properties , as a first step , could quickly 
 help factor in 
 
 affordability
 
  computations.

LOCATION EQUALS EXPENSE OFFSET:
Lack of Workforce Housing near employment cores
directly increases costs to a business bottom line.
 Smart companies look closely for this supply. The
Impact is felt by Both employer and employee and 
the environment is being given attention in this concern.


 
 SENIOR STUDIO UNIT'S
 aka:   "Granny PODS"
Universal Design considerations are
are extremely suggested /required.
We have a county " 50 PLUS PLAN.
 THE OVER 60 POPULATION WILL DOUBLE
 IN NUMBERS AND REMAIN AT  THAT NEW LEVEL. 

House- less SENIOR numbers will be increasing !  
A 33% 
 
increase by 2050 is expected for the US.  
300 mil to 400.     
 
6.7 billion to 9 billion worldwide .




FAMILY STUDIO UNITS
SINGLE PARENT HOUSEHOLDS make up the largest
 % of 
 Family Units in the P.I.T.Point in time surveys.
 Single Parents with 
 1 or 2 children may be cramped , 
but self 
 respect and empowerment increase by 
handling  our own needs. Creating a strength 
   all need
to Recover and or Grow up.  Family Studios ? By
county standards two rooms  , one 10x 7  and 
another 10x10 would legally accommodate a single
parent with 2 children sharing the larger. 540 sq.ft.
with 2 bedrooms side by side 18x30 gross inside wall
dimensions. Or 1 Bedroom and Office.

WORKFORCE STUDIO UNIT'S.
The Terwiliger/ULI  Transportation efficiency
Report Forecasts the need for 40,000 Affordable
Housing units.  The 10 year Plan to Prevent and End
Homelessness forecasts  2500 units .  Have we taken
5 years to reach a  decision? What is this Decision?

SMALL STUDIO UNITS ARE GREEN.
Tiny Housing units in the "entire" size of 300 sq.ft.
are needed  . How these relate to units per acre and
parking spaces per "unit" can be calculated.  Is it
our  WILL to address our needs that seems 
to be lacking ?.            Not the ability or desire. 

 RECYCLED GREEN  STUDIO'S .
8 x40 foot shipping containers are a viable format
and erect in a matter of days and weeks.  They can
be stacked  4 high in modular fashion.  8x20's are a
bit small for permanent housing ,but as emergency
housing they would still be a God send. 



ECONOMICAL STUDIO UNIT'S.
Water and Sewer infrastructure as well as other
maintenance intensive residential supports can
no longer support Suburban Sprawl.  Being subject
to Covenants and restrictions of existing Homeowner
Associations further complicate the mix . Simplified
BY-RIGHT OPTIONS to facilitate 1 to 4 unit investors
participation widen the possibilities .
FHA single family options which can be financed 
with 
 Govt. insured mortgages have been ignored
 and or abandoned. Single/Duplex/Triplex/Fourplex's
Financing limits range 700K  to 1 Million Four Hundred.
Designs  available could make Mclean and Great
Falls residents envious.
Conventional lending sources have minimum house 
size limitations  (620 sq.ft. +/-) so  FHA guidelines need
to be consulted as does a dialog  with Freddie Mac and
Fannie Mae concerning secondary financing conduits.
The Financing infrastructure we have enables us to 
have multiple financing options other than cash.
ZONING limitations act in ways that can be likened to
creating value. Or reducing value .   Does every 4 RSU's
act as 1 housing unit for density computations? Or 
Should a person remodel a single family residence into
4 Master Bedroom/Full Baths  and  a wetbar in each room?

TRANSPORTATION EFFICIENT EFFICIENCIES.
Urbanizing and Renovating the existing Housing
Inventory  to accommodate  RSU conversions will
come .  Proximity to the place of Employment in both
Distance and time must support walking and biking
as transportation needs. Bus and rapid transportation 
that respects local users who do not have the ability
or resources to jump in a car must be respected if we
expect to continue to subsidize business by use of the Minimum wage laws.


GROUP HOUSING UTILIZING STUDIO MODEL
Develop 8 and 10 MBR McMansions  with 5 facade
options that can be fast tracked in optimum habitat
locations? (ecological approach to housing) . Gross
rental income of $7200. per month limits maximum 
acquisition costs /mortgage to 8OO k . 
 Walking distance 
to shopping and Bus important. Convenient to Professional
services.Self empowerment and 
 
living within one's own 
resources develops  self respect.McKinney/Vento SHP
Location examples might include:  Woodburn rd.,
1 block off Rt.1 from woodlawn to Beacon Hill,  Downtown
Springfield,   R.1 areas 1 block from Major Arterial and
bus stop.   Bailey's . , Reston/herndon 1 block to bus.


EXCLUSIONARY ZONING EXCLUDES PEOPLE
Economic Development that ignores  the  Minimum
wage workers only externalizes the expenses and puts 
the stress 
 on to County services.  Avg. Occupancy county
wide is 2.74 residents per Housing unit inclusive all types.


A.  300 sq.ft.   BASIC UTILITARIAN HOUSING  priced
as starter housing would cost  $60,000 to $90,000.
Subject to land cost which is directly related to ZONING.
(220 plus 80 ?)  10x30   / 16x 18.5/  16x20  / 17x17?

90x6 =  $540 .00  30 year amortized payment

33,600  gross income   $17.50 combined hrly income.
Conventional lending strict Income to debt ratio's
 29,900 income possible. 2 people making $8. hr each.

B.   500 sq.ft.  FAMILY STUDIO  2 adult 1 child/1adult2child
expected to cost  $ 100,000 to $150,000.    
 ( 350 plus 150?)    170 (70/100)/50 / 75/  55/

150x6 =  $900. per month PI payment 30 yr. mort.
 
 
$40,000  joint income FHA qualifying.  The "NEW" Starter.

C.  Three Bedroom Efficiencies   750-900 sq.ft.
       30x25,   30x30. 2 adults 3 children


How much will this cost? 
How can this be paid for?
2500  RSU's x 125,000. est. avg. cost=  $312,500,000.  
THREE HUNDRED TWELVE MILLION.
 (  18 Pennies for affordable housing)

One PENNY  = 18 million   312/18 = 
18 million would pay 5.5 % int. on 312.5 

Two PENNIES would  pay off BOND in _21_ yrs.
or repay a 65 million dollar Revolving line
of credit every 2 years.  

2018 is nearly here.

COST GUIDANCE :
All rental income could be be assigned to
min/max categories of Admin.6%of Rental value 
/Maintenance  4% / 
 Bond accelerated payoff 
 to provide for an 
 active ownership concern .
Direct deposit and Account Direct deposit
payment options for rent payment facilitation.  
Live Internet 
 
connections in 
 
all units would allow 
for 
 
email contact to 
 
work and streamline interaction.
Phone over Internet has become a minor expense.
Universal Internet Access provides educational
outreach and other services that in time will pay
dividends to county .    

SUBSIDIES:
We spend  1/2 % of County Budget for Parks 
and Recreation even after $40 million in revenue
paid by users who enjoy the amenity.  That's a 
1/3rd and 2/3rds  subsidy.   Home Owners are
subsidized by Federal tax deductions on interest
and Property taxes. Non-Owners pay taxes on the
amount of Rent they pay and a significant percentage
cannot afford $6. daily passes at the Rec. Center.

 PERSPECTIVE COMPARISON:
312 houses in Great Falls?
725 homes in West Springfield?
1000 Houses in Springfield?

FUNDING EXAMPLE:
2 Penny's for Affordable Housing devoted to
this endeavor would at 36 million dollars be
equal to a bit over 1% of Counties 2011 budget.

ARTICLE 1 VA. DECLARATION OF RIGHTS:
312 million compares to 1 year expenditures 
of Police and Fire Services per 2011 Budget.
158 million each.  Many people would consider
Preventing and Ending Homelessness a Public
Safety matter.  The No-income and Low income
segment is unable to rent a camping spot . Priced
out and Timed out. 

CHARITABLE CONDUIT.
County Parkland consists of 400 Parks and a total
of 22,600 to 24,000 acres valued on the books at
$336,502,000.  or an average of $14,000 each.
119 acres were acquired in 2009.   Theoretically
2500 units could be built  on 100 to 200 acres.
Finding land to build 250 units right away is a
worthwhile goal . 150 families  of the nearly 300
from the 2010 point in time survey can afford $500
or so per month ,$75,000 per month, would more 
than cover utilities.  People 
 need a know about
Charitable conduits 
 
for Affordable Housing.  

Rent V. Own
2500 2 bedroom rentals would cost $3,000,000.
per month.   $36,000,000  per year  and Ownership
equity 
 accumulation of $312 Million in 15 years or so
would not include inflation caused appreciation. 
Income from Affordable/HUD qualifying formula 
can not 
 
be forecast but can be expected.

IMMEDIATE BOND FUNDING CREATION :
In the amount of 65,000,000. to acquire appropriate
property and land amenable to 10 unit housing and 
such would create opportunity in this crisis.

UNEQUAL EXAMPLE OF TAXATION :
Of the 400,000 Housing units in the county,
312 Million equates to $800 per property.

A   $65,000,000. Bond could be paid in full
like a Revolving Line of credit.  Giving us the
ability to nearly pay as we go.  20 million for
Redevelopment projects that accelerate the
Ecological siting of group homes could then
be assigned to Non-Profit Housing organizations
to partner with County designate.

PERSPECTIVE:
 Less than 1 % of existing inventory.
.625 % of 400,000 Housing Units in Fairfax Co.
plus a 10. 00% increase  / 40,000 Workforce units 
that are needed by 2020.

LAND/IMPROVEMENTS  IDENTIFICATION:
20 acres zoned R-20 could yield  20 locations 
with 48 R.S.U.'s each location.  5 locations each
of the 4 mental health districts. Any economic
advantage that translates to a lower cost per
studio  and which stimulates the production 
of these units is encouraged .  

EMOTIONAL NEEDS FOR PRIVACY:
Separating Cooking 
 
and Bathing needs 
reduces Friction and conflict that can 
be generated  
 
when these functions 
include personalities and emotion
 
.

Supported and Non-supportive Housing
would benefit . As would small families,
Seniors wanting to downsize and low
income individuals no matter where on
the Affordable Housing scale they are.

The need for Open Space is grounded in
Healthy emotional needs.  The pursuit of
Safety and Security in the form of a house,
no matter how tiny is vitally more fundamental.

Cut this Ghordian Knot, and lead the way. 

Your stipulations have a huge impact on a section of
our population that is currently being neglected and
further delay supports the stigmatization that they
do not matter. Inaction is a form of action.


PLEASE RESTORE OUR HOPE:


x.
_________________________________________________________


date_____________________________

_________________________________




Letter prepared by

KeithBender@E-FFordableHousing.org
Energy, Ecology,  Expenses & Emotions

703  372 6706

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