This has been a real eye opener, not only in working with the development staff but learning how their system works and what goes into an affordable housing product.
The non-profit developers, I have worked with, have a genuine mission in mind as they work through the various hurdles that all developments have as an inherent part of the overall process. They go about feasibility, due diligence, budgeting and how to stretch a dollar just as for-profit developers do. Their task is more difficult, however. They are trying to fill a need for housing for people who may be at the 80% AMI level and not “market” rate. This means they need to be extra creative with their pencil.
As these 2 non-profits realized, there needed to be an alternative method for product delivery that assists them in bridging the affordability gap. They turned to modular as a solution in controlling costs. While many developers both for and non-profit continue to try and address budget limitations the same way they have for years, others are exploring a different construction technique altogether. More general contractors and architects are seeing the viability of modular as that different construction technique and are making strides in accepting and implementing modular as another way they can satisfy their client’s needs. Credit should be given to these industries as well.