meadowlark overview
TRANSCRIPT
Upper Valley MEND and the SHARE Community Land Trust
Affordable Housing In the Upper Valley:At the Crossroads
Meadowlark Update 2013
What it will take to make it happen
Alpine Heights10 homes, 2001
Aldea Village10 Homes, 2006
Cornerstone Adult Family HomeSix resident units + Manager apartment: 2011
Assumed asset management responsibilities for eight homes in 2011 when local Habitat chapter closed
UV MENDand
Affordable Housing in the Upper Valley
Keeping Leavenworth Livable for Working Families
“These working families are critically important to the success of any community, as they are the lifeblood of our workforce. There is no question that affordable housing is important in any community, but it has never been more important to Leavenworth than right now.”- Leavenworth Mayor Cheri Farivar
Change in Population, Housing Units, and Housing Unit Status:
Cities in Chelan County, 2000-2010
Change in Population, Housing Units, and Housing Unit Status:
School Districts in Chelan County, 2000-2010
On 11/17/12, there were 173 Residential Properties Listed for Sale in Leavenworth, Peshastin, Dryden, Lake Wenatchee, and Steven’s Pass
Single Family Median List Prices (152)• $397,000 in Leavenworth (Range: $89,000-$2.0m)
• $349,000 in Peshastin/Dryden (Range: $125,000-$1.1m)
Condo Median List Prices (21)• $299,900 (Range: $119,000-349,000)
Properties $250,000 or less (43)• 34 Single Family • 8 3-Bedroom (7 are in Plain)• 9 2-Bedroom • 17 1 or No Bedrooms (1 room cabins) • 9 Condos, Median $165,900
Home Sales in the Upper Valley
Meadowlark Site Plan
Meadowlark Site Plan and Home Types
Revenue from Home Sales
Numbers Taken from the Meadowlark Pro Forma
97% OF MEND’S MEADOWLARK COSTS ARE COMMITTED – WE HAVE 3% TO GO
MEADOWLARK PROJECT COST & COMMITTED REVENUES:
PROJECT COST:Land and Predevelopment $1,074,801Site Development $2,766,882Construction (@ $95-100 s/f) $8,808,349Interest Reserve $375,000Selling Costs $331,300TOTAL PROJECT COST $13,356,332
COMMITTED REVENUES:Community Support to Date $542,102City of Leavenworth $234,000County of Chelan $20,000SHOP (HUD) $450,000Habitat for Humanity $450,000Affordable Home Sales $5,200,000Near Market Home Sales $6,065,000TOTAL COMMITTED REVENUES $12,961,102
UNFUNDED GAP $395,230
Opportunities...
... and RisksProject Management Partner with large contractor
Construction Cost 15% contingency on infrastructure, 15% on homesAbsorption/Price Points Flexible build out (4-5 years)Project Financing Will know soon enough to secure bank back-up
90% likelihood 70% likelihood 50% likelihood Totals
$150,000 $150,000CDBG (community development block grant) $750,000 $750,000City of Leavenworth 20-60 Fund $20,000 $20,000Chelan County 20-60 Fund $70,000 $70,000Other grants, foundations & corporate giving $100,000 $100,000 $200,000HTF (Housing Trust Fund) $500,000 $500,000Additional Community Capital Raise $175,000 $175,000 $350,000Site Plan Change adding 5 more lots (net value) $250,000 $250,000
Save $5 per square foot on building cost $335,000 $335,000Save another $5 per square foot $335,000 $335,000Save 25% of the contingency $195,000 $195,000Save another 25% of the contingency $195,000 $195,000Rayfield donation of work $100,000 $100,000 $200,000
$340,000 $2,305,000 $705,000 $3,550,000
Cover gap $340,000 $205,230 $545,230Bring down affordable house prices $2,099,770 $705,000 $2,804,770Reduction per affordable house $69,992 $23,500 $93,492
ADDITIONAL REVENUE USE:
TOTAL POTENTIAL ADDITIONAL REVENUES
Potential Reductions in Costs:
Critical Community Capital Raise
POTENTIAL SOURCES OF ADDITIONAL REVENUES:
Economic Impact of MeadowlarkThe investment of public funds for Meadowlark’s infrastructure will leverage a multi-year, public, private, non-profit effort for 100 residences, the majority of which are affordable housing, with over $21,000,000 in value of direct construction and investment.
The estimated local impact from construction of 100 homes include the private and public benefits of:• $21.1 million in local income• $2.2 million in taxes and other revenue for local governments• 324 local jobs
After construction, the annually-recurring impacts include:• $3.1 million in local income• $743,000 in taxes and other revenue for local governments• 53 local jobs. These recurring benefits come from new home-occupiers paying taxes and becoming consumers in the local economy year after year. Other ongoing impacts include the effect of increased property taxes, based on the difference between the value of raw land and the value of a completed housing unit on a finished lot.
Source: The Local Impact of Home Building in a Typical Metro Area: Income, Jobs, and Taxes Generated: June, 2009, available at http://www.nahb.org/generic.aspx?sectionID=784&genericContentID=35601
Economic Impact of Meadowlark51 Homes, 6 Lots
Excise tax on $11.2m sales $56,000
Sales tax on $11.5m construction $207,000
Hookups/Permits $624,000
Property Tax (Annual 3X) $265,200
TOTAL $1,152,200
• $13,000,000 in economic activity through the local market.
• Generating:
Go-Forward Timeline
ITEM STATUS NOTES
Site Planning and Engineering 60%
Planned Development Preliminary Approval
80% In negotiations with city on ‘application complete’.
CDBG Application 1/31/2013 Successfully submitted.
Final Site Engineering 2/1/2013 -5/1/2013
Construction Financing 2/1/2013 –5/30/2013
Working on ‘socially responsible’ investment pool.
Final Contractor Bids/Selection 5/1/2013 –7/1/2013
Infrastructure only.
Infrastructure Construction Begins 8/1/2013
Final Contractor Bids/Selection 9/1/2013 –11/1/2013
Home builder(s).
Phase I Home Permits 1/1/2014
Home Construction Begins 7/1/2014
The MEND Board believes we should move forward, provided that we raise $150,000 of our $540,000 capital drive in order to finish pre-development.
The Board mandated on November 22 to make the decision whether or not to go forward by the end of December, dependent upon raising the $150,000. The reason for this mandate is to protect the financial integrity of all other MEND ministries.
AND NOW FOR THE RESULTS As of December 31st we exceeded our goal of $150,000 in donations. See attached list of donors Forty community leaders & donors we presented to unanimously recommended to proceed with Meadowlark, building homes and community.
Part of our mission is to make sure the community is with us, as it has been for all of our MEND ministries. We have and are now continuing to reach out to the community to ensure the necessary moral support and financial backing for
Meadowlark.
Providing affordable homes for our families and employees is critical to our community.