Local affordable housing not an impossible dream

Today's editorial highlights the Calabash builder who's churning out good homes for well under $100,000.

"Creating affordable housing for our communities' hard-working families is no easy matter. High land prices complicate the effort from the get-go. The folks who provide the designs, materials, appliances and labor to build, equip and finish decent single-family homes for local families rightly expect to be paid for their efforts. And local building codes rightly drive up costs by requiring that new homes - even modest ones - be sturdily built.

"But as Brunswick County, N.C., builder Brian Smith is demonstrating, it is possible to build such homes in reasonable quantity for well less than $100,000 each. The "secret": Local government, nonprofit organizations, designers, builders, suppliers and equippers must contribute to the effort, in well-coordinated fashion.

"The Sun News reported earlier this week that Smith, whose WB Properties and Construction is based in Calabash, N.C., has figured out how to do this. With the support of county planners, Smith's company is building nine southern Brunswick County homes to replace substandard dwellings that have been torn down. Federal grant money fuels the effort. Smith estimates the finished homes will cost $85,000 or less.

"Building a quality home at that price is only possible, however, because the private-side folks helping Smith are accepting less for their products and their work than they'd expect on a normal housing project. The architect, for instance, contributed the two house plans Smith is using and will ask for no reuse fees if Smith replicates the design on new housing projects. And the company that provides trusses for the for-profit homes Smith is building in the Crow Creek development is contributing trusses for the affordable homes at cost. Smith himself, of course, is taking a smaller profit than he'd take on an unsubsidized house sold at a much higher price.

"Public and private leaders in Georgetown and Horry counties are said to be watching this north-of-the-border initiative with interest, in hope of replicating it south of the border - where the need for affordable homes is even greater. But as the newspaper has noted before, comparable efforts are already under way in both S.C. counties - via their Habitat for Humanity chapters.

"Those nonprofits, grounded in good old American initiative, use a unique business model to provide deserving families with new stick-built homes. Habitat chapters receive few public subsidies while relying on low-interest mortgages, as well as donations, to generate seed capital for new homes.

"As with Smith's effort, donated labor and materials are also part of the equation. A given home buyer's 'down payment' is sweat equity built up through work on homes for other people.

"The only problem with the Habitat efforts -- besides high land cost, which plagues all builders -- is that its business model allows construction of only a few homes at a time. Smith has demonstrated how a slight change in the economics of home-building can speed the pace of affordable-home construction.

"If local governments are willing to devote more of their grant money to the effort, and if folks who earn their living in all aspects of home construction are willing to coordinate their charitable efforts, the two S.C. counties can create sustainable affordable housing initiatives, too. As with so many pressing public problems, the only inhibiting factor is lack of determined leadership."

Comments?

Comments

[beachguy(original)]

a double wide is a viable option for less than 85,000....but then there is that pesky land price...any lots in Brunswick county for under $15,000 ???

[jim sefter]

What people want is a house for 75,000 that will appreciate to 250,000. Everyone wants to get rich without having to do anything.

[Denney Clements]

Jim: It's as much the American Way as hard work and sweat equity. That's why lottery sales remain strong and steady.
dc

[jim sefter]

Unfortunately, you're right. I guess that's part of the "American Dream" !